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Board of Directors Financial Highlights Our Leadership Team Letter from CEO Connecting with the Community Connecting with Associates Management Team Notice Unconsolidated Financial Statements

Contents

Consolidated Financial Statements

134 138 139 140 141 174

Auditors’ Report

97 99 100 101 103

Auditors’ Report

Balance Sheet

Consolidated Balance Sheet

Statement of Profit and Loss

Directors’ Report Management Discussion and Analysis Corporate Governance Report Business Responsibility Report Consolidated Statement of Profit and Loss Consolidated Cash Flow Statement Notes forming part of the Consolidated Financial Statements Cash Flow Statement

Notes forming part of the Financial Statements Statement under Section 212 of the Companies Act, 1956 relating to subsidiary companies

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917 crore .Net Profit Up 34% @ 13.

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Vijay Kelkar Ishaat Hussain Phiroz Vandrevala O.tsrdarashaw. Mumbai 400 021 Tel : 91 22 6778 9595 Fax : 91 22 6778 9660 Website : www.com Website: www. E.com Board of Directors 9 Corporate Office TCS House Raveline Street. Clayton M Christensen Dr.relations@tcs. Bhatt Company Secretary Suprakash Mukhopadhyay Statutory Auditors Deloitte Haskins & Sells IFRS Auditors Deloitte Haskins & Sells Registered Office 9th Floor.com Registrars & Transfer Agents TSR DARASHAW Private Limited 6-10. Dr. Fort Mumbai 400 001 Tel : 91 22 6778 9999 Fax : 91 22 6778 9000 E-mail: investor. Nirmal Building Nariman Point.tcs.Board of Directors Cyrus Mistry (Chairman) S Ramadorai (Vice Chairman) N Chandrasekaran (CEO and Managing Director) Aman Mehta V Thyagarajan Prof. Moses Road. Ron Sommer Dr. Mahalaxmi Mumbai 400 011 Tel : 91 22 6656 8484 Fax : 91 22 6656 8494 E-mail: csg-unit@tsrdarashaw. P. Haji Moosa Patrawala Industrial Estate 20.com .

Annual Report 2012-13 Management Team Function Corporate CEO CFO Global Human Resources Geography Heads North America. Middle-East & Africa Surya Kant Henry Manzano Ravi Viswanathan Ujjwal Mathur Vish Iyer Qi Qi Dong Masahiko Kaji Varun Kapur Functions Marketing Corporate Communication R&D Human Resources John Lenzen Pradipta Bagchi K Ananth Krishnan Ritu Anand Ashok Mukherjee K Ganesan Thomas Simon S Narasimhan Delivery Governance Legal Finance Aarthi Subramanian Satya Hegde B Sanyal Pauroos Karkaria V Ramakrishnan Dharmesh Gandhi G S Lakshminarayanan Company Secretary & Treasury Chief Compliance Officer Security 10 Management Team Suprakash Mukhopadhyay Ravindra J Shah R K Raghavan N Chandrasekaran Rajesh Gopinathan Ajoyendra Mukherjee Name . UK and Europe Latin America India. APAC.

Media.Management Team Function Industry Service Units Banking & Financial Services K Krithivasan Ramanamurthy Magapu Susheel Vasudevan Suresh Muthuswami Syama Sundar Debashis Ghosh Jayanta Banerjee Milind Lakkad AS Lakshminarayanan N. Energy Resources and Manufacturing Telecom. Rajanna Nagaraj Ijari Sudheer Warrier Pratik Pal S Sukanya Tanmoy Chakrabarty Name Insurance and Healthcare Life Sciences. Hi-Tech and Utilities Retail & CPG and Travel & Hospitality Government Strategic Growth Units TCS Financial Services. iON. Small and Medium Business and Platform BPO N G Subramaniam Vijaya Deepti Venguswamy Ramaswamy Raj Agrawal Service Units Global Consulting Practice Engineering & Industrial Services Infrastructure Services BPO Global Delivery Network Assurance Services Enterprise Solutions Alliances Internal IT Digital Solutions J Rajagopal Regu Ayyaswamy P R Krishnan Abid Ali Neemuchwala Gabriel Rozman Siva Ganesan Krishnan Ramanujam Raman Venkatraman Alok Kumar Satya Ramaswamy Management Team 11 . Sivasamban Kamal Bhadada V.

with authority to the Board of Directors or a Committee thereof to fix his salary within such maximum amount. To appoint Auditors and fix their remuneration. Chief Executive Officer and Managing Director of the Company by way of an increase in the maximum amount of his salary (including the remuneration to be paid in the event of loss or inadequacy of profits in any financial year during the tenure of his appointment). N. 2013 and the Balance Sheet as at that date together with the Reports of the Board of Directors and the Auditors thereon. up to October 5. if any. N. Chandrasekaran. who retires by rotation. Sir Vithaldas Thackersey Marg. June 28. the Company hereby approves of the revision in the terms of remuneration of Mr. 7. 310 and other applicable provisions. 1956 (“Act”). 9 passed at the Annual General Meeting of the Company held on July 1. who retires by rotation.Annual Report 2012-13 Notice Notice is hereby given that the eighteenth Annual General Meeting of Tata Consultancy Services Limited will be held on Friday. consider and adopt the Audited Statement of Profit and Loss for the year ended March 31. of the Companies Act. read with Schedule XIII of the Act.30 p. 3. Revision in terms of remuneration of Mr.” “RESOLVED FURTHER that the Board or a Committee thereof be and is hereby authorised to take all such steps as may be necessary. Chief Executive Officer and Managing Director To consider and if thought fit to pass with or without modification the following Resolution as an Ordinary Resolution: “RESOLVED that in modification of Resolution No. To appoint a Director in place of Dr. N. proportionately. 2014. New Marine Lines. all benefits related to the quantum of salary with effect from April 1. 309. Chief Executive Officer and Managing Director of the Company and pursuant to the provisions of Sections 198. 5. 2. proper and expedient to give effect to this Resolution. To receive. 4. Aman Mehta. To appoint a Director in place of Mr. 19. Chandrasekaran. and being eligible offers himself for re-appointment.m. Ishaat Hussain. increasing thereby. 8. Chandrasekaran. as amended or re-enacted from time to time. who retires by rotation. Mumbai 400 020 to transact the following business: 1. Vijay Kelkar. To declare Dividend on Redeemable Preference Shares for the financial year 2012-13. 2013 at 3. and being eligible offers himself for re-appointment. 2011 for revision in terms of remuneration of Mr. and being eligible offers himself for re-appointment.” 12 Notice . To confirm the payment of Interim Dividends on Equity Shares for the financial year 2012-13 and to declare a Final Dividend on Equity Shares for the financial year 2012-13. at Birla Matushri Sabhagar. 2014.e. To appoint a Director in place of Mr. for the remainder of the tenure of his appointment i. 6. as set out in the explanatory statement annexed to the Notice convening this Annual General Meeting.

” 10. To all Members in respect of shares held in physical form after giving effect to valid transfers in respect of transfer requests lodged with the Company on or before the close of business hours on June 7. 2013. if any. June 8. 1956 (“Act”). etc. June 14. the Company hereby approves of the re-appointment and terms of remuneration of Mr. 2013.9. 2013 to Friday. dividend will be paid to the holder(s) of RPS on the Company’s Register of Members as on June 14. b. Notice 13 . A Member entitled to attend and vote is entitled to appoint a proxy to attend and vote instead of himself and the proxy need not be a Member of the Company. if any. 2. 1956 (“Act”) in respect of the business under Item Nos. any person(s) qualified to act as Branch Auditor within the provisions of Section 228 of the Act and to fix their remuneration. 309 and other applicable provisions. in India or abroad. must be received at the Company’s Registered Office not less than FORTY-EIGHT HOURS before the meeting.” Notes: 1. Appointment of Branch Auditors To consider and if thought fit to pass with or without modification the following Resolution as an Ordinary Resolution: “RESOLVED that pursuant to the provisions of Section 228 and other applicable provisions. S. Mahalingam as the Chief Financial Officer and Executive Director of the Company for the period September 6. Proxies submitted on behalf of limited companies. 4 to 6 of the Notice. both days inclusive. 1956 (“Act”). 2013 upon the terms and conditions set out in the Explanatory Statement annexed to the Notice convening this Annual General Meeting. The Register of Members and Transfer Books of the Company will be closed from Saturday. July 5. in order to be effective. In respect of Redeemable Preference Shares (RPS). If the Final Dividend as recommended by the Board of Directors is approved at the Annual General Meeting. 4. as amended or re-enacted from time to time. of persons seeking appointment/re-appointment as Directors under Item Nos. of the Companies Act. 8 to 10 above. in consultation with the Company’s Auditors. 2013 as under: a. as applicable. To all Beneficial Owners in respect of shares held in dematerialised form as per the data as may be made available by the National Securities Depository Limited and the Central Depository Services (India) Limited as of the close of business hours on June 7. Re-appointment of Mr. 269. 2013. The relevant details as required by Clause 49 of the Listing Agreements entered into with the Stock Exchanges. are also annexed. the Board be and is hereby authorised to appoint as Branch Auditors of any branch office of the Company. 3. as amended or re-enacted from time to time. Proxies. must be supported by appropriate resolutions/authority. read with Schedule XIII to the Act.. 2012 up to February 9. 2013. payment of such dividend will be made on Friday. The relative Explanatory Statement pursuant to Section 173 of the Companies Act. S. of the Companies Act. is annexed hereto. whether existing or which may be opened/ acquired hereafter. societies. Mahalingam as Chief Financial Officer and Executive Director of the Company until his retirement To consider and if thought fit to pass with or without modification the following Resolution as an Ordinary Resolution: “RESOLVED that pursuant to the provisions of Sections 198.

nominations. as applicable. Members holding shares in physical form in identical order of names in more than one folio are requested to send to the Company or TSRDPL. Members desiring any information as regards the Accounts are requested to write to the Company at an early date so as to enable the Management to keep the information ready at the Meeting. No claim shall lie against the IEPF or the Company for the amounts so transferred nor shall any payment be made in respect of such claim. 2006 can be claimed by the shareholders by June 28. 6. By Order of the Board of Directors SUPRAKASH MUKHOPADHYAY Vice President and Company Secretary Mumbai. 2013. Members holding shares in physical form are requested to consider converting their holding to dematerialised form to eliminate all risks associated with physical shares and for ease in portfolio management.. TSR DARASHAW Private Limited (TSRDPL) to provide efficient and better services. application money. 8. debenture interest and interest on deposits as well as the principal amount of debentures and deposits. Members’ attention is particularly drawn to the “Corporate Governance” section of the Annual Report in respect of unclaimed dividend. May 27. to their Depository Participant (DP). which has merged with the Company. for assistance in this regard. Members who have not yet encashed their dividend warrant(s) pertaining to the Final Dividend for the financial year 2005-06 and onwards are requested to make their claims without any delay to TSRDPL. 9. Members may please note that all unclaimed/unpaid amounts pertaining to TIL have been transferred to IEPF.Annual Report 2012-13 5. Members can contact the Company or TSRDPL. of the Act. all unclaimed/unpaid dividend. change of name. the details of such folios together with the share certificates for consolidating their holding in one folio. change of address. 2013 Registered Office: 9th Floor. It may be noted that the unclaimed Final Dividend for the financial year 2005-06 declared on June 29. in relation to the Company and erstwhile Tata Infotech Limited (TIL). contact numbers. Members holding shares in physical form are requested to intimate such changes to TSRDPL. mandates. if any. etc. 7. Members holding shares in dematerialised form are requested to intimate all changes pertaining to their bank details. only such joint holder who is higher in the order of names will be entitled to vote. 10. have been transferred to the IEPF established by the Central Government. power of attorney. A consolidated share certificate will be returned to such Members after making requisite changes thereon. Transfer of Unclaimed/Unpaid amounts to the Investor Education and Protection Fund (IEPF): Pursuant to Sections 205A and 205C and other applicable provisions. Nirmal Building Nariman Point Mumbai 400 021 14 Notice . remaining unclaimed/unpaid for a period of seven years from the date they became due for payment. In case of joint holders attending the Meeting. Electronic Clearing Service (ECS). Changes intimated to the DP will then be automatically reflected in the Company’s records which will help the Company and the Company’s Registrars and Transfer Agents. e-mail address. National Electronic Clearing Service (NECS).

of the Act.. 2014. Chandrasekaran as approved by the Members of the Company will remain unchanged. 309. 8: At the Annual General Meeting of the Company held on July 1. for the remainder of the tenure of his appointment i. control and directions of the Board in connection with and in the best interests of the business of the Company and the business of any one or more of its associated companies and/or subsidiaries.00. read with Schedule XIII of the Act. Notice 15 . Mr. S. N.9: The Board had re-appointed Mr. with effect from April 1. Chandrasekaran. He retired with effect from February 10. 2011. He joined the Company on November 9. 8 for approval by the Members. Mahalingam has a Bachelor’s degree in Commerce (Honours) and is a qualified Chartered Accountant. N. In compliance with the provisions of Sections 198. 309. The aggregate of the remuneration as aforesaid shall be within the maximum limits as laid down under Sections 198. with proportionate increase in the benefits related to his salary. 1956] As required by Section 173 of the Companies Act. S. Term: September 6. of the Act. Chandrasekaran as specified above are now being placed before the Members for their approval. including performing duties as assigned by the Managing Director and/or the Board from time to time. Mahalingam as Chief Financial Officer and Executive Director (“CFO & ED”) with effect from September 6. Chief Executive Officer and Managing Director. All other terms and conditions relating to the appointment of Mr. Chandrasekaran within the above maximum amount. 2013 in accordance with the retirement age policy for Directors.Explanatory Statement [Pursuant to Section 173(2) of the Companies Act. subject to the superintendence. Taking into consideration the increased business activities of the Company and the responsibilities cast on Mr. Mr. Item No. N. if any. 8 of the accompanying Notice.000 p.000 p.m. N. The Board commends the Resolution at Item No. Chandrasekaran. if any. 2012 up to February 9. Chandrasekaran from ` 10. to ` 15. 2013 Nature of Duties: The CFO & ED shall devote his whole time and attention to the business of the Company and carry out such duties as may be entrusted to him by the Managing Director and/or the Board from time to time and exercise such powers as may be assigned to him. up to October 5. 1970 and has over 40 years of experience in the software industry. 1956 (“Act”) the following explanatory statement sets out all material facts relating to the business mentioned under Item Nos. The main terms and conditions of his re-appointment are as follows: A. 2013. the revised terms of remuneration of Mr. Chandrasekaran for revision in his remuneration pursuant to Section 302 of the Act. N. the Board has revised the maximum limit of salary of Mr. 2014. The Board of Directors or a Committee thereof would fix the salary of Mr.m.00.00. N.e. N. 8 to 10 of the accompanying Notice: Item No. with the maximum amount of salary of ` 10. Chandrasekaran is concerned or interested in Item No. N. This may be treated as an abstract of the draft agreement between the Company and Mr. 2012 to February 9. B. the Members had approved the revision in terms of remuneration of Mr. read with Schedule XIII of the Act as amended from time to time. 310 and all other applicable provisions.000 p. 310 and all other applicable provisions. by serving on the Boards of such associated companies and/or subsidiaries or any other executive body or any committee of such a company.m.

ii. default or misconduct in connection with or affecting the business of the Company or any subsidiary or associated company to which he is required by the Agreement to render services. The employment of the CFO & ED may be terminated by the Company without notice or payment in lieu of notice: a. The terms and conditions of the appointment of the CFO & ED may be altered and varied from time to time by the Board as it may. vi. he shall cease to be a Director and CFO & ED of the Company. the Board shall be entitled to terminate his contract on such terms as the Board may consider appropriate in the circumstances. Mahalingam ceases to be in the employment of the Company for any reason whatsoever. he shall cease to be the Executive Director. the CFO & ED shall immediately tender his resignation from offices held by him in any subsidiaries and associated companies and other entities without claim for compensation for loss of office. directly or through his spouse and/or children. S.000 per month. Remuneration – (a) Basic Salary up to a maximum of ` 5. D. and the Agreement shall forthwith terminate. perquisites and allowances as may be determined by the Board from time to time. repeated or continuing breach (after prior warning) or non-observance by the CFO & ED of any of the stipulations contained in the Agreement to be executed between the Company and the CFO & ED ( the “Agreement”). vii. Upon the termination by whatever means of the CFO & ED’s employment: a. in its discretion deem fit. the Company will pay remuneration by way of basic salary. iii. In the event the CFO & ED is not in a position to discharge his official duties due to any physical or mental incapacity.Annual Report 2012-13 C. or in the event of any serious. v. (c) benefits. or in the event the Board expresses its loss of confidence in the CFO & ED. where in any financial year during the currency of the tenure of the CFO & ED. Mr. in any selling agency of the Company. with authority to the Board or a Committee thereof to fix the salary within the said maximum amount. Mahalingam will cease to be the Executive Director and also cease to be a Director of the Company. If at any time. b. Other terms of Appointment: i. The appointment may be terminated by either party by giving to the other party one month’s notice of such termination or the Company paying one month’s remuneration in lieu thereof. 16 Notice . the CFO & ED shall not without the consent of the Company at any time thereafter represent himself as connected with the Company or any of the subsidiaries or associated companies. If and when the Agreement expires or is terminated for any reason whatsoever. Minimum Remuneration – Notwithstanding anything to the contrary herein contained. iv. as specified above. If at any time. Mr. c. S. The CFO & ED is appointed by virtue of his employment in the Company and his appointment shall be subject to the provisions of Section 283(1) (l) of the Act. Mahalingam ceases to be a Director of the Company for any reason whatsoever. irrespective of the limits stipulated under Schedule XIII of the Act or any amendments made hereafter in this regard in such manner as may be agreed to between the Board and the CFO & ED. b. subject to such approvals as may be required. The CFO & ED shall not become interested or otherwise concerned. Remuneration: i.00. the Company has no profits or its profits are inadequate. perquisites and allowances. Mr. ii. benefits. if the CFO & ED is found guilty of any gross negligence. S. (b) commission based on performance criteria to be laid down by the Board. viii.

9 for approval by the Members. 2013 Registered Office: 9th Floor. The Board commends the Resolution at Item No. The Board commends the Resolution at Item No. It may be necessary to appoint branch auditors for carrying out the audit of the accounts of such branches. S. 2013.10 for approval by the Members. 9 of the accompanying Notice. May 27. 10 of the accompanying Notice. By Order of the Board of Directors SUPRAKASH MUKHOPADHYAY Vice President and Company Secretary Mumbai. An abstract of the terms of re-appointment of Mr. The terms and conditions of appointment of the CFO & ED also include clauses pertaining to adherence with the Tata Code of Conduct. 2012 to February 9. the terms of re-appointment and remuneration of Mr. Mahalingam as CFO & ED pursuant to Section 302 of the Act was sent to the Members in September 2012. are now placed before the Members in the Annual General Meeting for their approval. S. Mahalingam as CFO & ED was in the interest of the Company and the remuneration payable to him is commensurate with his abilities and experience. Nirmal Building Nariman Point Mumbai 400 021 Notice 17 . Item No. The Members are requested to authorise the Board of Directors of the Company to appoint branch auditors in consultation with the Company’s Auditors and fix their remuneration. Mahalingam as CFO & ED of the Company during the period September 6. 10: The Company has branches in India and abroad and may also open/acquire new branches in India and abroad in future.ix. no conflict of interest with the Company and maintenance of confidentiality. In compliance with the provisions of Sections 198. S. None of the Directors is concerned or interested in the Resolution at Item No. 269 and 309 read with Schedule XIII of the Act. None of the Directors is concerned or interested in the Resolution at Item No. The Directors are of the view that the re-appointment of Mr.

IFE)NSURANCE Company Limited s 4ATA3KY.IMITED s 6OLTAS.A.IMITED Limited s 4ATA!)!. 2010 B.IMITED s *373TEEL.ETWORKS.IMITED s 4ATA4ELESERVICES. 1947 January 5.IMITED Shareholders/Investors Grievance Committee s 7OCKHARDT.IFE)NSURANCE Company Limited s 4ATA3KY.UPIN.IMITED s 'O!IRLINES)NDIA . Aman Mehta September 1.UPIN.IMITED s *-&INANCIAL.IMITED s 4ATA)NDUSTRIES.IMITED s 'ODREJ#ONSUMER0RODUCTS Limited s #AIRN)NDIA.IMITED Shareholders/Investors s 4ITAN)NDUSTRIES.IMITED s *ET!IRWAYS. PhD in Development Economics from the University of California at Berkeley Mr.IMITED Insurance Company s *-&INANCIAL.IMITED Memberships/ Chairmanships of committees of other public companies (includes only Audit Committee and Shareholders/Investors Grievance Committee) Audit Committee s 7OCKHARDT. Ishaat Hussain September 2.IMITED s 4ITAN)NDUSTRIES. completed the Advanced Management Program conducted by Harvard University Retired senior bureaucrat in Wide experience in Finance the Government of India s 4ATA3ONS.IMITED s -AX)NDIA.S.IMITED s 'REEN)NFRA. Chartered Accountant from England and Wales.IMITED Number of shares held in the Company Nil #HAIRMANOFTHE#OMMITTEE 18 Notice .740 Mr.IMITED s *ET!IRWAYS. Vijay Kelkar May 15.IMITED s 4ATA#APITAL.IMITED Limited s4ATA4ELESERVICES.IMITED s 4ATA3TEEL.S. S.IMITED s 4ATA#APITAL&INANCIAL Services Limited Audit Committee Audit Committee s 4ATA3TEEL. 1942 January 5.IMITED s 4ATA!)!.IMITED s *-&INANCIAL. M.IMITED Shareholders/Investors Grievance Committee s 4ATA3TEEL.IMITED s 'O!IRLINES)NDIA .IMITED s 'O!IRLINES)NDIA .IMITED Grievance Committee s 4ATA!)''ENERAL s . U.IMITED s 4ATA!)''ENERAL Insurance Company s 4ATA#HEMICALS.IMITED Nil 1.Annual Report 2012-13 Details of Directors Seeking Appointment/Re-appointment at the Annual General Meeting Particulars Date of Birth Date of Appointment Qualifications Dr.IMITED s "RITANNIA)NDUSTRIES Limited s 4ATA)NDUSTRIES. 2010 Bachelor’s degree in Economics from Delhi University.IMITED s 'ODREJ#ONSUMER0RODUCTS Limited s #AIRN)NDIA. 1946 May 5. from University of Pune.IMITED s 4HE"OMBAY$YEINGAND Manufacturing Company Limited s 6IOM.IMITED s . 2004 Bachelor’s degree in Economics from Delhi University Expertise in specific functional areas Directorships held in other public companies (excluding foreign companies and section 25 companies) Wide experience in Banking and Finance s 7OCKHARDT. from University of Minnesota.

Directors’ Report .

81 crores including dividend tax.385.718.49 2.83 crores resulting in a payout of 39. The total cash outflow on account of dividend (interim as well as proposed) including dividend tax for the financial year 2012-13 would aggregate ` 5.996 equity shares of ` 1 each.38 13. The final dividend on the equity shares.96 10.39 19.069.10 22.17 22.00 806.048.84 12.278.761.34 2011-2012 38.119.49 1.33 2.544. Dividend Based on the Company’s performance.54 35.435. the Directors are pleased to recommend for approval of the members a final dividend of ` 13 per share for the financial year 2012-13 taking the total dividend to ` 22 per share (previous year ` 17 per share excluding special dividend of ` 8 per share) on the capital of 195.35 10. if approved by the members would involve a cash outflow of ` 2.893.352. The Directors submit the Annual Report of the Company along with the audited financial statements for the financial year ended March 31.17 13.413.98 10.22) 22.523.86 15.949.761.77 1. Financial results Unconsolidated 2012-2013 Revenue from operations Operating expenditure Earnings before interest.40 688.18 1.98 (` crores) Consolidated 2012-2013 62.703.951.54 14.83 34.39 30.73 4.49 1.86 1.089.27 2.31 428.00 797.918.49 1.917.78 22.761.79 16.565.602.565.05 29.63 24.34 12.34 1.49 (103.976.975.86 10.989.565.63 18.72 2.786.04 14.87 14.00 712. 2013.18 2.685.31 3. 1.104.399.31 2011-2012 48.20.230.65 29.69 158.23 917.178.91 1.18 (126.49 2.235.Annual Report 2012-13 Directors’ Report To the Members.014.366.54 (` 1 crore = ` 10 million) 2.78 22.54 48.160.77 1.975.57 18.529.72. depreciation and amortisation (EBITDA) Other income (net) Finance costs Depreciation and amortisation expense Profit before tax (PBT) Tax expense Profit for the year before minority interest Minority interest Profit for the year (PAT) Adjustment for amalgamation of Retail FullServe Limited and Computational Research Laboratories Limited Balance brought forward from previous year Amount available for appropriation Appropriations Interim dividends on equity shares Proposed final dividend on equity shares Special dividend on equity shares Proposed dividend on redeemable preference shares Tax on dividends on equity & preference shares (interim and proposed) General reserve Statutory reserve Balance carried to balance sheet 1.565.014.48 44.92 18. tax.34 1.97 1.426.23 48.045.29% of the unconsolidated profits of the Company.306.39 19.14 34.20 1.458.00) 18.761.235.85 1.544.390.635.94 13.51 11.039.160.60 18.18 16.45 109. 19 Directors’ Report .923.00 727.097.786.166.52 14.075.20 25.20 30.23 26.62 802.916.079.

revenue from operations for the financial year 2012-13 at ` 48.85 crores is proposed to be retained in the statement of profit and loss.23 crores in 2011-12). Retail FullServe Limited (RFL) and Computational Research Laboratories Limited (CRL): RFL and CRL. tax.27 crores was higher by 25. 4.000 redeemable preference shares of ` 1 each for the financial year 2012-13. For the first time. All the industry segments have registered double digit growth. Latin America (40%).31 crores was higher by 33. e-Serve and TEIL are engaged in the business of providing information technology enabled services (ITES) and business process outsourcing services (BPO) for its customers primarily in the banking. for approval of the members.039.48 crores was higher by 28. Strategic acquisition The Company has made acquisitions over the past few years either directly or through its subsidiaries.385. have amalgamated with the Company with effect from the Appointed Date.The redeemable preference shares allotted on March 28.426. in terms of the scheme of amalgamation sanctioned by the High Court of Judicature at Bombay by its Order dated March 22. 5.278. 6.413. Company’s performance During the financial year 2012-13. the Board of Directors of the Company. on consolidated basis. Profit after tax (PAT) for the year at ` 13. 2008 are entitled to a fixed cumulative dividend of 1% per annum and a variable non-cumulative dividend of 1% of the difference between the rate of dividend declared during the year on the equity shares of the Company and the average rate of dividend declared on the equity shares of the Company for the three years preceding the year of issue of the said redeemable preference shares.Earnings before interest.83 crores in 2011-12). both wholly owned subsidiaries engaged in similar business as that of the Company. 1956 (“Act”). analytics/ insights and support services for both data and voice processes.0% over last year (` 14. CRL was a wholly owned subsidiary of Tata Sons Limited. TCS e-Serve Limited (e-Serve) and TCS e-Serve International Limited (TEIL): On October 19. financial services and insurance domain. 2012 and October 1. proposing amalgamation of e-Serve with the Company and demerger of SEZ undertaking of TEIL into the Company. the Company has achieved well-rounded growth with steady profitability. April 1.00.602. a pioneering start-up company in the area of high performance computing solutions in India. The Company had excellent growth across markets .104.5% over last year (` 10. revenue from operations for the financial year 2012-13 at ` 62. e-Serve. the Company crossed USD 3 billion revenue in a quarter during Q4 of the financial year 2012-13.989.8% over last year (` 48.98 crores in 2011-12). Status of restructuring of unlisted subsidiary companies i.7% over last year (` 11.49 crores in 2011-12). 2013. On unconsolidated basis. enabled the Company to extend its suite of solutions and offer integrated high performance computing applications and Cloud services to its large base of customers. On consolidated basis.893. depreciation and amortisation (EBITDA) at ` 18. 3.91 crores was higher by 25. tax.786.United Kingdom (44%). i. 2012.917.975. ii. depreciation and amortisation (EBITDA) at ` 14.19) per share on 100.34 crores was higher by 16. Directors’ Report 20 . In the financial year 2012-13. primarily in the emerging markets.435. Profit after tax (PAT) for the year at ` 12. The acquisition of CRL.306. the Directors have recommended. There were signs of faster growth in certain geographies. which called for much higher level of efficiency and preparedness for participants in the market. The amalgamation would lead to efficient utilisation of resources and enhanced growth of the consolidated entity. Asia Pacific (27%).14 crores was higher by 27.72 crores in 2011-12). The Scheme will lead to operational synergy.00. e-Serve’s operations include delivering core business process services. a dividend of nineteen paise (` 0.31 crores in 2011-12). 2012 respectively. Accordingly. North America (27%). the Company acquired Computational Research Laboratories Limited (CRL). The prevailing uncertainties were challenging. During the year 2012-13.1% over last year (` 38. e-Serve and TEIL have approved a composite scheme of arrangement (“Scheme”) between the Company. Middle East Africa (28%) and India (16%). TEIL and their respective shareholders under Sections 391 to 394 of the Companies Act. Earnings before interest.e. the global economic environment was on a slow growth path.7% over last year (` 10. Europe (21%)..63 crores to the general reserve out of the amount available for appropriation and an amount of ` 24. Transfer to reserves The Company proposes to transfer ` 1.

with a gross addition of 69.196 employees representing 118 nationalities. The workforce management strategy was executed optimally to deliver a sustained utilisation rate throughout the year helping business grow while maintaining employee costs at the desired level. the Company had acquired Citigroup Inc. for the purpose of seeking approval of the shareholders. the India-based captive BPO of Citi. All the students who were given job offer last year were inducted into the organisation during financial year 2012-13. Human resource development TCS draws its strength from a highly engaged and motivated workforce. TEIL is a wholly owned subsidiary of e-Serve. whose collective passion and commitment has helped the organisation scale new heights. a meeting of the equity shareholders of the Company has been scheduled on Friday. best-in-class service management and robust information security practices helped the Company attain a number of milestones during the year. The Company achieved annual enterprise-wide ISO certification for ISO 20000:2011 (Service Management). Pursuant to an Order of the High Court of Judicature at Bombay. Quality initiatives Sustained commitment to highest levels of quality. In financial year 2012-13. TCS won the QuEST forum India quality award 2012 for being the first telecom software company in the world to implement the advanced surveillance and recertification procedure (ASRP) methodology for TL 9000. A total of 12.. enhance organisational agility and remain compliant with the changing regulatory requirements. AS 9100 (Aerospace Industry). Trainees were recruited from established institutes across the globe. The relentless drive to create “One TCS Culture” across the organisation helped the Company integrate its diverse global talent base into a cohesive high performing unit.26% interest in e-Serve (then known as Citigroup Global Services Limited).Annual Report 2012-13 In the year 2008-09. The cornerstone of these certifications is TCS’ integrated quality management system (iQMSTM).728 and net addition of 37.789 person years of effort were invested in enhancing the proficiency levels of the employees and in developing a steady stream of business leaders ready to take on the challenges as per growing requirements of the organisation. 2013. The Company continued its effort to strengthen relationship with key institutes globally through its academic interface programme which benefited 616 institutes in India and 288 institutes in other countries.’s (Citi) 96. 8. May 31.613 employees across the globe. The Company was recognised as India’s most admired knowledge enterprise (MAKE) winner (1st place) this year and has received the prestigious MAKE award for the 8th time in India as well as Asia.6% achieved during this year. a benchmark in the industry. a global processdriven and customer-focused system which provides ‘One Global Service Standard’ and is the backbone supporting the TCS’ global network delivery model (GNDMTM). The Company also continues to maintain the industry specific quality certifications viz. The Company also received the global individual operating unit (IOU) MAKE award for the 3rd time in a row. 7. Focused initiatives towards health and safety and other non-work related employee engagement programmes helped develop the personality and confidence level of the employees enhancing their motivation and engagement with the organisation. The robust and mature talent management and talent engagement processes of the Company helped create an environment where performance is rewarded. ISO 9001:2008 (Quality Management) and ISO 27001:2005 (Security Management). The Appointed Date proposed for the Scheme is April 1. The Company is enterprise-wide certified for ISO 14001:2004 (Environmental Management) and BS OHSAS 18001:2007 (Occupational Health and Safety Management) which demonstrates TCS’ strong commitment to the environment and the occupational health & safety of its employees and business partners. Human Resource policies and processes have evolved to stay relevant to the changing demographics. 21 Directors’ Report . These initiatives have delivered the desired results as is evident from the low attrition rate of 10. Campus placement drive was conducted in 371 engineering institutes in India resulting in 24. ISO 13485 (Medical Devices) and TL 9000 (Telecom Industry). 2013. the Company remained the highest recruiter in the industry.531 job offers to students to join in the financial year 2013-14. The Company has a diverse workforce of 2. Individual and organisational capability building remained one of the strategic focus areas.76. opportunities are provided for career growth and people are encouraged to realise their potential. The Company continues to maintain the enterprise-wide highest maturity Level 5 for CMMI-DEV® (Development) and CMMI-SVC® (Services) models.

9.OIN)NDIABY)NSTITUTIONAL)NVESTORS!LLn!SIA%XECUTIVE4EAMRANKINGS s 3ELECTEDAS"EST-ANAGED"OARDIN)NDIABY!ON(EWITTn-INT3TUDY s )#!)'OLD3HIELDFOR%XCELLENCEIN&INANCIAL2EPORTING  . Awards/Recognitions During the year. some of which are given below: India s !WARDEDh#OMPANYOFTHE9EARvBY"USINESS3TANDARD s 2ANKEDAS)NDIAS-OST6ALUABLE#OMPANYIN"4FROM"USINESS4ODAY s 2ANKED. the Company received various awards and recognitions.

The consolidated financial statement discloses the assets. 2013. As per Clause 55 of the Listing Agreements entered into with the Stock Exchanges. Subsidiary companies and consolidated financial statements The Company had 58 subsidiaries as on March 31. (iii) they have taken proper and sufficient care to the best of their knowledge and ability for the maintenance of adequate accounting records in accordance with the provisions of the Act. (ii) they have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year and of the profit of the Company for the financial year.815 beneficiaries globally. Directors’ Report 22 . Corporate Governance Report with auditors’ certificate thereon and a Management Discussion and Analysis Report are attached and form part of this report. Pursuant to the provision of Section 212(8) of the Act. touching 21. a consolidated financial statement of the Company and all its subsidiaries is attached. A statement containing brief financial details of the Company’s subsidiaries for the financial year ended March 31.EADERSHIP!WARDSIN$UBAI s 4OP3OFTWARE#OMPANYAT1U%34&ORUM)NDIA1UALITY!WARD s 4HREERECOGNITIONSIN5+S"USINESSINTHE#OMMUNITYS")4# !WARDSFOR%XCELLENCE s #ARING#OMPANY!WARDFOR#32ACTIVITIESIN(ONG+ONG Corporate Governance Report.68.THIRDTIMEINSUCCESSION Global s 2ATEDASONEOFTHEWORLDSGREENESTCOMPANIESBY. There has been no material change in the nature of the business of the subsidiaries. Directors’ responsibility statement Pursuant to the requirement of Section 217(2AA) of the Act. the Ministry of Corporate Affairs vide its circular dated February 8. a Business Responsibility Report (BRR) is attached and forms part of the annual report. statement of profit and loss and other documents of the subsidiary companies with the balance sheet of the Company. the Directors hereby confirm that: (i) in the preparation of the annual accounts for the financial year 2012-13. 2011 has granted general exemption from attaching the balance sheet.EWSWEEK-AGAZINE s . As required under the Listing Agreements entered into with the Stock Exchanges. the applicable accounting standards have been followed and there are no material departures. The BRR provides details of these programmes. liabilities. 11. and based on the representations received from the operating management. A number of CSR activities were taken up through various programmes under the theme “Impact through Empowerment”. 12. expenses and other details of the Company and its subsidiaries.ISTEDIN&ORBES!SIAS&AB s !WARDED@"EST0ERFORMING#ONSULTANCY"RANDIN%UROPE s 2ECOGNIZEDASLEADING)43ERVICESAND/UTSOURCING&IRMIN#HINA s 4OPHONOURSATTHE!SIAN#)/. (iv) they have prepared the annual accounts on a going concern basis. The consolidated financial statement has been prepared in accordance with the relevant accounting standards as prescribed under Section 211(3C) of the Act. income. 2013 is 10. Management Discussion and Analysis Report and Business Responsibility Report As per Clause 49 of the Listing Agreements entered into with the Stock Exchanges. They confirm that there are adequate systems and controls for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities.

The Directors place on record their appreciation of the invaluable contribution and guidance provided by Mr. Mahalingam as the Chief Financial Officer and Executive Director of the Company. 2012 in accordance with the retirement age policy for Directors.Annual Report 2012-13 included in the annual report. who are the statutory auditors of the Company. 13. 2012. Conservation of energy. vendors. foreign exchange earnings and outgo The particulars as prescribed under Section 217(1)(e) of the Act. Mr. the report and accounts are being sent to the shareholders excluding the aforesaid annexure. Tata with effect from December 28. Mr. Mr. R. Government of India. Auditors M/s. Rajesh Gopinathan has 17 years of experience and has been with TCS since 2001. Mahalingam. Aman Mehta. N. customers. Tata retired as the Director and Chairman of the Board with effect from December 28. 2013 Cyrus Mistry Chairman 23 Directors’ Report . Vijay Kelkar. in respect of employees of the Company. 2013. is provided in annexure forming part of this report. 2013 in accordance with the retirement age policy for Directors. Chartered Accountants. Fixed deposits The Company has not accepted any public deposits and as such. He has held several key positions in finance. in accordance with the provisions of the Act till the conclusion of the forthcoming annual general meeting and are eligible for re-appointment. Acknowledgement The Directors thank the Company’s employees. 15. retire by rotation and being eligible have offered themselves for re-appointment. Particulars of employees The information required under Section 217(2A) of the Act and the Rules made thereunder. Mr. Chief Financial Officer Post retirement of Mr. technology absorption. 2012. Mr. State Governments in India and concerned Government Departments/Agencies for their co-operation. hold office. Dr. no amount on account of principal or interest on public deposits was outstanding as on the date of the balance sheet. read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules. He is an MBA from Indian Institute of Management. Rajesh Gopinathan has been appointed as the Chief Financial Officer of the Company with effect from February 10. The Directors also thank the Government of various countries. The Directors appreciate and value the contributions made by every member of the TCS family globally. N. The Directors place on record their appreciation of the invaluable contribution made by him. R. 18. R. The annual accounts of the said subsidiaries will also be available for inspection. Mumbai May 27. investors and academic institutions for their support. 14. On behalf of the Board of Directors. The annual accounts of these subsidiaries and the related information will be made available to any member of the Company/its subsidiaries seeking such information and are available for inspection by any member of the Company/its subsidiaries at the registered office of the Company. Mr. Any shareholder interested in obtaining copy of the same may write to the Company Secretary. Directors. Deloitte Haskins & Sells. 19. N. In terms of Section 219(1)(b)(iv) of the Act. are set out in an annexure to this report. S. Trichy.Ishaat Hussain and Mr. Directors Mr. Tata. Cyrus Mistry was appointed as Deputy Chairman on November 8. 17. Ahmedabad and an engineer from Regional Engineering College. S. at the head offices/registered offices of the respective subsidiary companies. 1988. 16. strategy and sales during his career with the Company and has worked in multiple geographies. who was the Chief Financial Officer and Executive Director retired on February 9. Cyrus Mistry has taken over as the Chairman of the Board from Mr.

enterprise data management. water and waste. domain knowledge repositories. Researchers in each area are exploring new technology ideas relevant to TCS customers. This suite of products automate IT service processes such as application design and development. s Platform innovation: Preparing the customers for the near term future. The Company held 77 innovation events including ‘innovation days’ with customers and ‘innovation forums’ (a congregation of COINTM partners. the Company filed 425 patents and 9 patents were granted. monitor and improve environmental performance through various means and initiatives focusing on energy. RESEARCH & DEVELOPMENT (R&D) Specific areas in which R&D was carried out by the Company The Company conducts R&D initiatives with the aim of promoting invention as well as innovation. carbon. robotic surveillance. Software. as a part of all the new campus designs. software assurance. Thomson Reuters India Innovation Awards 2012 and the Asian CIO Leadership Awards 2012.280 patents filed. These tools form part of TCS’ derivative innovations. TECHNOLOGY ABSORPTION. performance testing and monitoring. Systems and Application. operational energy efficiency at all the offices and procurement of renewable energy at some locations. TCS R&D has three research area councils viz. test data management. R&D investment in TCS continues to be along three segments and time horizons: s Derivative innovation: Improving the current offerings to the customers. capable of creating radical changes in infrastructure management. TCS tools continued to improve quality and efficiency of service delivery. Data on improvement in consumption of energy have been provided in the Business Responsibility Report. The Company is also working on genomics and disease markers. combined with ‘Green IT’. This. data discovery and human systems. Several media news items and interviews with research leaders focused on TCS research. TCS researchers worked on 450 papers that were presented at national and international conferences and in top tier journals. machine learning applications.Annexure to the Directors’ Report Particulars pursuant to Companies (Disclosure of Particulars in the Report of Board of Directors) Rules. Several pilot projects are being run using the ‘Intelligent Infrastructure System’. The Company’s research scholar programme now sponsors 111 PhD researchers from 31 institutions across the length and breadth of the country. solar photovoltaic electricity generation have helped the Company achieve significant reductions in the carbon footprint. academic researchers and key customers). Many senior researchers from TCS won awards and accolades. A website for research was launched at www. on-site use of renewable energy like solar water heaters. The Company has processes to measure. There are currently 10 academic alliances and 22 emerging technology partners. During the financial year 2012-13. all new TCS campuses are designed on par with LEED Gold criteria for green buildings for improved efficiency. nanofluids. s Disruptive innovation: Enabling radical changes to the customers’ work methods and business models. 1988 CONSERVATION OF ENERGY TCS has enterprise wide certification under IS0 14001:2004 (Environmental Management) for 77 offices globally. As for platform innovations. On a cumulative basis. application support and maintenance. ADAPTATION AND INNOVATION The Company continues to use the latest technologies for improving the productivity and quality of its services and products. Benefits derived Intellectual assets created by R&D teams were deployed internally and for customer projects creating substantial savings. domestic sewage treatment and recycling facilities. Directors’ Report 24 . In the financial year 2012-13. 81 have been granted. In order to reduce the electricity consumption and the resultant carbon footprint.com/research. TCS Innovations won 10 awards including the Medici Innovation Hall of Fame. help the Company work towards the target of zero water discharge campuses. Water efficiency and conservation initiatives. the Company has progressed with the ‘Enterprise Information Fusion’ platform and has been working on subjects such as currency risk models. rainwater harvesting systems. crowd sourcing platforms and building energy management systems.tcs. TCS Co-Innovation Network (COINTM) continues to connect cutting edge research and technology research with customers. out of 1..

TCS (consolidated) a. e.99 1.18 612.38% Capital Recurring Total R&D expenditure (a+b) Innovation center expenditure # 566.90 151.50 On behalf of the Board of Directors. Foreign exchange earnings CIF Value of imports Expenditure in foreign currency 2012-2013 45.46 149. Kolkata and Mumbai. b.06 235.31% in financial year 2012-13). Expenditure incurred in the R&D centers and innovation centers of TCS (unconsolidated) during the financial year 2012-13 and 2011-12 are given below: (` crores) Expenditure on R & D and innovation .942.88 718. Chennai. in ongoing and new research projects. e.69 12.70 459.TCS (unconsolidated) a.82 127. product engineering groups and groups engaged in path breaking technologies at multiple locations all over the world.16 128. the Company has set up innovation labs.18 2011-2012 37.34 161.23% 2011-2012 2. # 2012-2013 1. c.58 1. as certified by Department of Scientific & Industrial Research (DSIR) function from Pune.24 1.36 2011-2012 1. TCS also engages in various innovations related activities for customers globally at project locations.23% Capital Recurring Total R&D expenditure (a+b) Other innovation expenditure# Total R&D and innovation expenditure (c+d) Total R&D and innovation expenditure as % of total turnover Includes innovation related to customers globally FOREIGN EXCHANGE EARNINGS AND OUTGO Export revenue constituted 92. Bengaluru.98 396.43 141. f. In addition to these R&D centers.84 164. (` crores) Foreign exchange used and earned a. Expenditure on R&D The Company’s R&D centers. c.27 143.48% Total R&D and innovation expenditure (c+d) R&D and innovation expenditure as a percentage of total turnover Includes activities for customers at project locations Expenditure incurred in the R&D centers and innovation centers of TCS (consolidated) during the financial year 2012-13 and 2011-12 are given below: (` crores) Expenditure on R & D and innovation . c. systems and application. Delhi-NCR.29 602.602. 2013 Cyrus Mistry Chairman 25 Directors’ Report .40 776. Mumbai May 27. b. Hyderabad.030. f.98 525.96 1. # 2012-2013 2.78 15. d. b.13% of the total unconsolidated revenue in the financial year 2012-13 (91.Annual Report 2012-13 Future plan of action The Company continues to invest in several software. d.345.56 372.

Management Discussion and Analysis .

The worldwide spending on technology and related services in 2012 was USD 1. In addition. The Company provides end-to-end technology and technology related services to global enterprises. while TCS manages their investments in technology and helps transform their business processes. presence in geographies. 3. business process outsourcing. the Company has launched several new service offerings in digital technologies . which reflect in the steady upward trend in its financial outcome over the years. markets and industries. big data and cloud computing. BUSINESS 2. assurance services. engineering and industrial services. a growth of 4. ECONOMY AND INDUSTRY OVERVIEW The global economic environment in calendar year 2012 continued to remain uncertain with signs of concern and slow growth (1%-2%)1. The Company has been registering steady all round growth in its customer base. telecom. continued to have the majority share of 58% of total IT spend. Investments by American corporations in innovation and digital technologies is driving the growth in technology spend. energy resources & utilities and travel transportation & hospitality. consulting and business solutions company. asset leveraged solutions and consulting. 3. services. (3) global network delivery model (GNDMTM). 2.1 Customer centricity Building deep and long lasting customer relationships is the key to the Company’s long-term success. NASSCOM Strategic Review 2013 26 Management Discussion and Analysis . Investment in technology has been enabling companies to connect with customers and influence their purchase decisions on a real-time basis.Annual Report 2012-13 Management Discussion and Analysis 1. including creation of a domain-centric organisation structure and building deep domain knowledge and technology skills across industries. media and entertainment. IT spend in emerging markets like Asia-Pacific continues to grow at a faster pace than in mature geographies on account of investments by corporations to bring their IT infrastructure on par with global standards. life sciences & healthcare. Across markets. (4) non-linear business models and (5) experience certainty. emerging verticals such as healthcare. domain expertise and service offerings. The breadth and depth of TCS’ domain and technology expertise has been built over the last 45 years through a unique combination of investments in people and new technologies supported by long standing client relationships.2 Capabilities TCS has strong domain expertise in banking. strong consumer spending and upbeat investment sentiment continue to drive economic growth (5%-8%)1. enterprise solutions & business intelligence.1 Overview TCS is an Information Technology (IT) services. technology and innovation are being seen as growth drivers.8% over 2011. financial services & insurance. retail. 2. STRATEGY The Company’s strategy for long-term profitable growth is based on continuously scaling its core IT services business. BPO and software products. Despite the changing and volatile economic environment. spending on technology and related services grew at a rate faster than the GDP growth. The global sourcing market reached a volume of USD 124-130 billion in 2012 with a growth of 9% over 2011. Investment in innovation has emerged as a differentiator in the market place. financial services & insurance (BFSI) and manufacturing remained the largest verticals in terms of total share in IT spending. TCS’ full services portfolio consists of application development and maintenance. government and utilities were the drivers of incremental growth in 2012. which was twice the growth rate of the global IT spend. retail and consumer packaged goods. TCS has the distinction of being one of the most valuable companies in India and one of the top ten IT services companies in the world. The large North American IT market continues to expand at a faster pace (5%) than the economy. Improving consumer confidence and structural policy decisions in the developed markets are providing the required momentum to kick-start the economy on to the path of recovery. manufacturing and ‘other’ verticals which include hi-tech. While banking.9 trillion2. (2) full services portfolio. 2 technology expertise helps global corporations to focus on their core business. TCS’ domain knowledge and Source: 1 IMF. while investing in new customers. The Company’s strategy of strengthening the current business and investing in the future revolves around (1) customer centricity. Spend on IT. As a result.mobility. The Company has undertaken several initiatives to be customer centric. social computing. IT infrastructure services. In the emerging markets. the global market offers substantial opportunities and TCS is fully geared to navigate through the changing technology demands and customer expectations. standing at USD 1 trillion2.

In fiscal 2013. Revenue bucket $1mn + $5mn + $10mn + $20mn + $50mn + $100mn + Number of customers FY-13 FY-12 FY-11 522 458 556 245 208 277 170 143 196 99 81 115 43 27 48 14 8 16 has made significant progress in digital technologies and developed mobile applications and consumer analytics on top of existing investments in core applications for many customers.1 Staying relevant The uncertain economic environment. Clin e2e and Med Mantra (life science & healthcare) and SWIFT MRO (travel). The ‘Technology Excellence Management Discussion and Analysis 27 TCS’ key principles of customer centricity are (1) staying relevant to customers and (2) helping customers to define their future. Solutions: TCS has built several configurable solutions and pre-built components that help expedite the implementation of business transformation programmes and large complex projects. global corporations are able to rely on a single service provider for assured delivery of large transformation programmes.2 Defining the future Businesses are finding ways to keep re-inventing themselves for the future and investing in building capabilities to predict market dynamics and consumer behaviours. (c) similar time zone and (d) business continuity planning. GNDMTM also provides higher level of comfort to customers on account of (a) proximity to client’s location. TCS’ full services capability enables the customer to measure the efficiency and effectiveness of transformational engagements with the Company on the basis of business outcome. TCS’ IP based products include TCS BĮNCS(BFSI). The customer metrics shown here reflect the success of the customer-centric strategy. offering ‘one global service standard’ to customers across the world in a seamless manner. This capability is widely recognised by leading industry analysts and observers as an industry benchmark. the Company . the UK and China.3 Global Network Delivery Model (GNDMTM) TCS’ full services capability is supported by its strategy of investing in GNDMTM. taking the total number of global delivery centers (excluding India) to thirty two. The Company is working closely with its customers. Leveraging this capability of TCS. GNDMTM supports customers’ operations in various regions of the world and helps their business expansion plans in new and emerging markets. 3. life insurance and pension policy administration. Rewardz and mPOS (retail). public sector and in other industries is driving non-linear growth through license revenue and high-end domain consulting. hosted OSS/BSS (telecom).1. (b) de-risking of delivery location concentration and (c) entering new markets. Platforms: TCS has built (a) vertical platforms in banking processes. 3. TCS further expanded its GNDM TM capability by opening four new delivery centers in the USA. TCS is helping enterprises to standardise. insurance. During last year. life sciences and health care.1. products & services in order to protect and grow their market base.2 Full services portfolio The Company has strategically invested in building multiple service offerings over the last decade and made them function in a synchronised manner. TCS’ platform based solutions and services optimises clients’ spend on technology and processes. retail. helping them to gain deeper insights into their customers’ needs and enabling them to realign their offerings accordingly. GNDMTM facilitates (a) leveraging of global talent. 3. increasing competition. which contribute revenue growth without commensurate growth in headcount. finance & accounts (F&A) and payroll and (c) technology platforms like iON – a fully integrated IT-as-a-Service (ITaaS) model for small & medium businesses. TCS is working with its clients in a ‘co-creation model’ and helping them innovate new business models. it has been pursuing non-linear growth opportunities.c e n t r i c a p p r o a c h h a s h e l p e d t h e Company to grow its customer base consistently. 3. This has helped the Company to position itself as an integrated full service player in the IT services space. retail and manufacturing supply chain. stricter regulatory & compliance framework and changing consumer behaviour are forcing businesses to adapt to change and continuously look for ways to stay relevant to the market and customers. rationalise and transform their business operations to become operationally efficient and remain cost competitive in the market place.4 Non-linear business model While the Company continues to make significant progress in the traditional IT services offerings. For TCS. The contributors to the non-linear business model are: Products: TCS’ intellectual property (IP) based products in banking and financial services.T h e c u s t o m e r. 3. (b) language capability. (b) horizontal platforms in analytics.

manufacturing and other industries are collaborating to shape the digital future of their business. cloud. The ‘customer collaboration center’ in the Silicon Valley of the Company is a digital innovation lab. The Company envisions tremendous growth potential in digital technologies and is committed to continue investing in this area to drive long-term growth.Annual Report 2012-13 Group’ of the Company focuses on predicting the future of technology and invests in building various technology solutions. 4. The Company has also built a number of industry and technology solutions in digital technologies like mobile and social media. TCS’ digital innovation lab has built several digital applications and solutions for multiple industries. analytics and social media. TCS’ ‘Delivery Excellence Group’ continuously refines delivery processes and helps the Company to stay ahead of global quality standards. where customers from retail. 5.5 Experience certainty ‘Experience certainty’. delivered on a mobile device through cloud services has the biggest potential to support business in taking right decisions in real-time. TCS’ brand promise to its customers. A real time analysis of consumer behaviour. providing leadership to drive transformation and partnering for success. DIGITAL TECHNOLOGIES Adoption of digital technologies is a top priority among all enterprises. individually all of these technologies are influencing the way business operates and interacts with consumers. across industries and geographies. TCS has significantly invested in digital technologies – mobile. telecom. their real power lies in the ‘combination of digital forces’. The Company is also making initial investments in new emerging technologies like production automation and high performance computing. TCS helps customers experience certainty by reliably delivering business results. Europe and Asia-Pacific. Experience certainty is part of our culture of commitment and is ingrained in the customer-centric behaviour of our associates. While. leadership. INNOVATION TCS continues to invest in research framework which includes: 28 Management Discussion and Analysis s s s )NVENTIONCREATIONOF4#3)0BASEDASSETSINTHEAREAS of domain and technology #O )NNOVATION CREATION OF NEW IDEAS. 3. is based on the core principles of ‘results. which are being implemented by customers in North America. which have great future potential. Experience certainty is backed by a strong set of metrics that the Company monitors for meeting quality parameters of delivery and relationship. and partnership’. big data. banking.

CONCEPTS and intellectual property in active partnership and collaboration with entities outside the company. using TCS’ Co-Innovation Network (COINTM) )NNOVATION CONVERSION OF NEW IDEAS.

The Company hired and integrated 69. an analytics-led toolset that transforms customers’ IT infrastructure and drives efficiency. software assurance. integrate. as well as genomics and disease markers. develop and retain the best talent required for driving business growth. These ‘IP’ assets are managed comprehensively by an indigenously developed process and system.196 associates representing 118 nationalities deployed across 55 countries. TCS R&D continues to focus on improvement of quality and efficiency in service delivery. energy management systems. This year. tuberculosis and diabetes. Cumulative patents filed till date globally stands at 1. HUMAN RESOURCES STRATEGY The human resources strategy enabled the Company to attract. machine learning applications. Company’s R&D is exploring ideas in meta-genomics related to malnutrition.280. Substantial R&D effort is also being spent on ‘eTransform’. TCS filed 425 patents during the year 2012-13 and was granted 9 patents. business units and society. a large number of software tools from R&D were released in the market as eight distinctive suites under TCS’ tool brand MasterCraftTM. These suites of products automate IT service processes such as application design and development.728 people into its workforce across the globe in fiscal 2013. The sustained strategic focus to enhance employee capability. CONCEPTS  intellectual properties into useful outcomes for the Company’s customers. nano-technology including novel drug-delivery mechanisms & nano-fluids. robotic surveillance. The ‘workforce . The Company is working on currency risk models. human-centric large-scale social systems and computer vision. In the longer time horizon. test data management and enterprise data management. The ‘Connected Marketing’ platform has been enhanced to deliver social and digital analytics to the marketing function of TCS’ customers. out of which so far 81 patents have been granted to the Company. application support and maintenance.76. 6. The Company employs 2. improve efficiency and groom future leaders has helped TCS maintain its benchmark status in the IT industry. performance testing and monitoring. crowd sourcing platform. The product ‘OptumeraTM’ addresses key operational optimisation challenges for a retailer.

deliver consistently high utilisation rates and keep manpower costs within the desired range as per business plan.11. Robust HR systems and sound execution of strategy ensure that the Company is able to manage the complexities associated with its scale and geographic spread.40. Our relentless pursuit to connect with employees on a regular basis. Management Discussion and Analysis 29 . ‘Any Time – Any Where’ learning is becoming 2009-10 2010-11 Excluding Subsidiaries 2011-12 2012-13 Including Subsidiaries 6.47.728 32.242 We continue to remain the employer of choice at the engineering campuses in India. Uruguay and Hungary. The Company has accelerated its effort to recruit from colleges in USA.373 2.management strategy’ was executed optimally to fulfil business demand. The learning eco-system is being transformed by investing in interactive classrooms.1 Talent acquisition India Overseas Opening headcount (As of April 1.76.429 1.583 2. Canada.276 25. research alliances and project opportunities for students. In fiscal 2013 the event was held at Mumbai with 72 academicians from India and abroad. The Company supports 111 research scholars pursuing their PhD in 31 institutes across India.276 were in India and the remaining 10.60. Employee Base 2. for the second consecutive time. The top management of the Company engages in crosspollination of ideas and discussions with academicians from premier technical and management institutes through ‘Sangam’. an annual flagship event. research scholarships.20.748 10. Our mature HR processes enable us to be agile and responsive to the dynamic global environment and stay relevant to the customers. It is also used as a platform to stay connected with prospective employees throughout the academic life cycle of a student. communicate in an open and transparent manner.38.531 2.368 people in-sourced from customer organisations globally.619 1.745 33. In the US. 2013) 2. TCS won the 21st ‘Global HR Excellence Awards 2013’ in the category ‘outstanding contribution to the cause of education’.54. As part of NASSCOM initiative of overall curriculum revamping.835 59. The gross addition includes 1. A total of 616 institutes in India and 288 institutes overseas benefitted through the Company’s AIP activities like workshops for faculty and students. and made 24.196 2.2 Academic interface programme (AIP) The Company continues to invest on AIP initiatives with the objective of developing faculty for academic institutes. awards.613 2.533 offers to engineering trainees and 269 offers to management trainees for fiscal 2014.98.3 Learning and development The Company continued to invest in enhancing its human capital through building skills and competencies for its associates.370 4.452 were outside India.75.38. with 99. TCS visited 371 campuses in India.000 student members. improve employability of students and develop curricula as per industry requirements. This forum is used extensively for talent spotting through various competitions like Codevita. TCS recruited students from 40 universities and 7 business schools. ‘Campus Commune’.614 1.082 21. China. while remaining compliant with the regulatory requirements in the countries it operates.115 37. 6. We are bringing in a paradigm shift in the learning process which may be called the next-gen learning & development (L&D).879 1. 2012) Gross additions Attrition Net additions Closing headcount (As of March 31. video based training and social media enabled social learning. The company kept its commitment and inducted all the trainees who were given offers during campus placement to join the Company in fiscal 2013.5% day one slots.76.830 T otal 2. The Company has created a performance driven environment where innovation is encouraged.728 employees out of which 59.196 TCS remained the highest recruiter in the industry with a gross addition of 69. performance is recognised and employees are motivated to realise their potential.366 17. TCS designed training modules for different engineering branches. provide opportunities to learn and grow within the organisation are yielding desired results as is evident from the high retention rates and the motivation and engagement levels of our employees. Mobeel and Testimony. faculty development programmes. through its research scholarship programme.67. 6. the dedicated social engagement platform of TCS for various academic interest groups has over 1.452 6.583 69.

329 13. The employee engagement initiatives and various HR interventions have helped us control attrition.40% 11. It empowers employees to articulate their feelings freely. mentoring and tracking career movement of employees. cultural activities and volunteering for social causes were organised across the globe under our employee engagement platform known as ‘Maitree’. The number of non-Indian nationals was 21.80% 12. We participated in multiple compensation surveys in India and other geographies to ensure that our compensation and total rewards strategy remains competitive.282 17. The Company’s attrition rate including BPO has come down to 10. domain and process. gymnasiums in offices and 24 x 7 ‘Employee Assistance Programme’ are some of the important initiatives undertaken by the Company to encourage health consciousness. A healthy leadership pipeline is maintained through the layered framework of ‘Leadership Development Programmes’ (LDP). We are expanding our training infrastructure capacity by building a state of the art training center in Thiruvananthapuram with a capacity to accommodate 15. 30. The organisation culture of open communication is supported through a highly flexible and transparent internal social networking platform.329 as of March 31. Employees are also encouraged to involve their families in these activities. focusing on developing behavioural.282 as at March 31.20% in fiscal 2012. regular connect with our employees helps to understand the pulse of the organisation and take appropriate measures to keep the workforce engaged and motivated. In addition. Fit4Life. Digitised systems have been enhanced and new ‘Career Hub’ has been launched streamlining the process of recording aspirations. AƩriƟon rate 14.167 certifications were acquired by our employees to enhance their proficiency in relevant areas of technology.464 new hires from colleges were trained to be IT professionals through our elaborate initial learning programme.4 Talent management. the global reward and recognition tool. 47. identifying high potentials.60% in fiscal 2013. We have tied up with globally recognised coaching agencies to provide coaching intervention to our leaders. periodic medical check-ups. Non-Indian naƟonals 21. 6. The culture of reward and recognition in TCS is aided by ‘TCS Gems’. A total of 12. with well-defined criteria and processes to enhance performance. as compared to 12. sports. The culture of volunteering helps employee bonding within the organisation and reduces stress at work. business and people competencies. In addition.5 Talent diversity The Company employed persons from 118 different nationalities.000 trainees. 2013 (17.789 person years of effort was invested in fiscal 2013 on various learning activities.60% 2009-10 2010-11 2011-12 2012-13 6. We remain the industry benchmark for talent retention. Efforts are also made to increase recruitment of individuals belonging to disadvantaged sections of society.536 2009-10 2010-11 2011-12 2012-13 30 Management Discussion and Analysis .Annual Report 2012-13 a reality in TCS. Efforts are made continuously to integrate differently-abled individuals into the workforce. exchange ideas and contribute to the organisational growth. Employee health and safety are of crucial importance. A number of events were organised throughout the year to enhance the awareness level of our employees towards road safety. leadership development and talent retention The performance and career management processes of TCS are fully globalised. A number of non-work related employee engagement initiatives such as fun events.665 9. health awareness sessions. Potential leaders are identified and are nurtured through LDPs and given challenging roles to build leadership capability.20% 10. 2012).

40% 30. 2013 (31. The Company has positioned itself well for the growth in business with an aligned strategy. The risk management process is completely digitised.60% 30. The key areas where TCS needs to introduce new policies or modify the existing policies to remain compliant are identified and acted upon. labour and immigration laws across the globe to ensure total compliance.90% Ecuadorians.40% Chileans. accessible to all units of operation across the globe and the same is reviewed by the corporate risk office on quarterly basis. ERM programme involves risk identification. Our progressive policies and customised programmes such as executive education programme for women in midmanagement.00% 6.20% Colombian. 4. 10. 18. A learning module has been created specifically for managers to enable them to work with diverse teams. 7. assisted by regular audits.70% Americans.60% as on March 31. 19. 2012). 3.6 Compliance The Company regularly monitors the changes in legislation pertaining to employment. The risk reports prepared by the Chief Risk Officer are reviewed by the board of directors at regular intervals.70% TCS proactively creates an environment of inclusion to attract and retain women. Gender diversity . The risk management process goes through a review annually in order to keep it aligned with the changing global risks. financial and compliance related risks across various levels of the organisation.90% Urugayan. 4. 8. interactive forums and women discussion circles address the aspirations and needs of our women employees. assessment and risk mitigation planning for strategic. Management Discussion and Analysis 31 .40% Mexicans.Top 10 nationalities Filipino. Women constituted 3 2 . 10.40% 31. operational. 4 0 % o f t h e C o m p a n y ’s w o r k f o r c e a s o n March 31.50% Chinese.women employees 32. with relatively low current level of penetration suggests significant headroom for future growth.30% 2009-10 2010-11 2011-12 Special initiatives were also taken to strengthen cultural orientation of employees and help drive “One TCS Culture” across the organisation. 15. The Company has deployed an ‘Enterprise-wide Risk Management’ (ERM) programme based on the recommendations of the ‘Committee of Sponsoring Organisations’ (COSO) formed by the Treadway Commission. 2012-13 Britishers. structure and capabilities. OPPORTUNITIES & RISKS The large size of the addressable global market.30% Others. 4.

Key risk Global economic situation Impact on TCS Mitigation The economic slowdown in the US s 'EOGRAPHYDIVERSIlCATION&ASTERGROWTHINGEOGRAPHIESOTHER and Europe has eased. The US economy has started s )NCREASE EMPHASIS ON PORTFOLIO OF OFFERINGS. but uncertainty than US and UK/Europe remains.Annual Report 2012-13 The following table lists some of the key risks faced by the Company.

still proposition and full service play uncertainties remain with respect s %UROPE IS PROVIDING OPPORTUNITIES FOR GROWTH. HIGHER VALUE showing signs of stability.

Restrictions on foreign and preferential treatment to local organisations are on the increase. SINCE MANY to debt ceiling. increasing rejections for visa and work permit applications. which could lead to customers are looking at cost optimisation strategies through further economic challenges in US. increasing minimum wage requirement may hamper growth prospect in major markets. Some of the governments of the developed countries in North America and Europe are bringing in new regulations to make labour movement from India difficult. s #ULTUREOFEMBRACINGNEWTECHNOLOGY. Possible sovereign default in Europe is also an area of concern. s 3TEPPED UP RIGOUR IN TERMS OF MANPOWER PLANNING AND deployment s &OCUSON'. Protectionism Business model redundancy Business models like cloud computing s #ONTINUOUS SCANNING OF ENVIRONMENT FOR EARLY DETECTION OF and other pay-for-use models are emerging trend beginning to gain traction in most s )NVESTINGINEMERGINGBUSINESSMODELSANDTAKINGPIONEERING industries. Unemployment situation is still a worry in US and Europe.$-TM model with local talent sourcing and increased leveraging of offshore delivery s 3ENSITISINGGOVERNMENTSONRESTRICTIVEREGULATIONSPRACTICES which prevent free flow of goods and services s 5SEOFINDUSTRYBODIESFORLOBBYINGWITHTHEGOVERNMENTS s 5SEOFADVOCACYAGENCIESINGLOBALMARKETSTOLOBBYFOROUR commercial interests. Tightening visa process. application of technology. This could result in demand role in adoption of technology compression for traditional IT services/ s )NVESTINGINNEW)02 pricing pressures.

a c q u i s i t i o n s 7ELLLAIDOUTINTEGRATIONPLANSANDCLOSEMONITORINGOFTHESAME challenges include cultural.PATH BREAKINGIDEASAND innovation. financial s #LOSEMONITORINGANDREVIEWOFACQUIREDENTITIESANDTAKING and technology integration risks which timely actions as required. architects and IT specialists with critical skills in demand can impact the Company’s ability to deliver. T h e C o m p a n y ’s p o s t . s 3CALINGUPTHE#OMPANYSDELIVERYFOOTPRINTINOTHERGEOGRAPHIES with large talent pools s )NVESTINGINIMPROVINGTHEQUALITYOFRECRUITSWHILESTRENGTHENING our brand image in campuses and getting us the coveted ‘Day One’ placement slot during recruitment season s 2ECRUITINGSCIENCEGRADUATESTOEXPANDTHEAVAILABLEPOOLOF fresh recruits s -ATURE (2 PROCESSES. if not addressed adequately could result in failure to achieve the strategic objectives of the acquisition and the resultant synergy expectations. The Company could be impacted by the loss of such critical talent. Inability to attract sufficient number of software engineers. Subject matter experts with domain and technology expertise are the key to success of the Company.

COMPETITIVE REMUNERATION.

GROWTH opportunities and an empowering. engaging workplace to ensure high employee satisfaction and retention of Gen Y recruits who constitute the majority of our workforce s 3TRONGTRAININGPROGRAMMES.

INCLASSROOMASWELLASE LEARNING mode has been put in place in order to keep the workforce up-to-date with technology and soft skills. Integration risks in M&A Supply-side risks Currency Volatility Vo l a t i l i t y i n c u r r e n c y e x c h a n g e s #URRENCYHEDGINGPOLICIESANDPRACTICESINPLACE movements resulting in transaction and s (EDGINGSTRATEGYMONITOREDBYRISKMANAGEMENTCOUNCILTHROUGH translation exposure. regular reviews s .ARGEPARTOFEXPENSESISINLOCALCURRENCY.

Increasing salary cost and escalating s $ECENTRALISED.PROVIDINGNATURAL hedge.

Non-compliance can lead to reputation loss in addition to penal action.INSTITUTIONALISEDFRAMEWORKFORCOSTMANAGEMENT operation expenses creating pressure s &OCUSONIMPROVINGPRODUCTIVITY on margin. Strict ABC laws on the lines of UK anti bribery law getting support world-wide. s 3TRONGANTI BRIBERYCHECKSANDCONTROLSPUTINPLACEANDBEING monitored closely s 4ATA#ODEOF#ONDUCTISBINDINGONALLEMPLOYEES Cost pressures Anti bribery and compliance (ABC) 32 Management Discussion and Analysis .

Last twelve months revenue buckets Number of customers Fiscal 2013 $ 1 million + $ 5 million + $ 10 million + $ 20 million + $ 50 million + $ 100 million + 556 277 196 115 48 16 Fiscal 2005 214 76 42 25 5 - Overseas delivery centers . This has expanded our geographic spread. but created significant wealth for its shareholders and other stakeholders. The Company’s performance over the last nine years at consolidated level brings out the success of the business strategy.10% in fiscal 2005). The strategy has paid off well over the years. The wealth so created has been judiciously allocated and shared with the stakeholders.66% of total revenue 7. derisking the delivery location concentration. Revenue percentage from repeat business remains at a high level of 98.18% of total revenue 3 fold increase in number 2013 2005 32 centers in 20 countries 9 centers in 8 countries Strategic focus on new services We have focused on new services in the portfolio of service offerings and revenues from new services recorded impressive growth over the years. Over the years. In achieving technical and professional excellence.VALUE CREATION SINCE FISCAL 2005 The journey of TCS is characterised by its ability to reinvent itself in terms of evolving technology and business practices.30% of total revenue 21 fold increase in revenue Customer centricity Our strategy to understand customers’ needs and offer relevant solutions has resulted in significant growth in the number of customers and upward movement in revenue band. It has also enabled us to take advantage of local talents and proximity to customers.150 crores.61% in fiscal 2013 (95. 12. VALUE CREATION Strategic focus on geographical diversity We strategically invested in Asia-Pacific. 2013 2006 31. 2013 14 fold increase in revenue 2005 ` 8. Disciplined execution of complex projects and customer centricity has enabled TCS to become a trusted business partner. 6. while leveraging the benefits of diversity. TCS has not only added value to customers’ businesses.94% of total revenue ` 602 crores. Management Discussion and Analysis 33 . Latin America and Middle East & Africa markets in order to derisk geographical concentration. TCS has been able to demonstrate agility and adaptability in innovating customer-specific solutions.‘One Global Service Standard’ We have set up 32 delivery centers in 20 countries outside India and ensured a uniform delivery standard across the globe.

000 20.700 8.808 30.84 in fiscal 2005 to ` 70.84 15.000 10.81 EPS aŌer adjusƟng bonus Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Economic value addition (EVA) EVA per annum in the last nine years has increased 6 fold.000 150.759 3.67 25.478 FY05 5. Compared to the listing price. capital appreciation of a share is more than 6 times.500 6. Net worth 45.000 5.000 15.254 40.68 21.000 300.000 35.99 70 60 50 46.00.000 200. Market capitalisation Market capitalisation crossed ` 3.569 2.579 24.53 20 10 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 11.000 50.300 EVA 10. in fiscal 2013.000 25.000 53.000 5. Market capitalisation 70. from ` 11.505 18.16 100.000 crores on March 31. after adjusting for two 1:1 bonus issues.304 9.27 35.000 1.000 ` crores 4. Increase in net worth The net worth of the Company has increased more than 11 times in the last nine years.263 FY08 FY09 FY10 FY11 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 34 Management Discussion and Analysis .99.646 29.500 9.283 3.Annual Report 2012-13 Earnings per share Earnings per share (EPS).000 ` 40 30 26.738 7.500 3. went up 6 fold.000 ` crores FY12 FY13 6.000 ` crores 80 EPS 350.000 38.724 3. post two 1:1 bonus issues.999 12.850 3.500 FY05 FY06 FY07 1.467 15.000 7.07 250. 2013.

1% 2282 3867 3000 2000 1000 1603 1295 627 FY05 744 5.9% 30.500 6. Gross block 6000 12.748 13.000 Revenue 28.420 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 ` crores Dividends Special dividends Dividend payout raƟo (Excl spl div) SHARING OF WEALTH Sharing of cash generated since fiscal 2005 Of the cash generated during fiscal 2005 to 2013.0% 15.24% 41.2% 30.685 9. with a compounded annual growth rate (CAGR) of 26.989 crores (USD 11.000 7.000 10.2% 35.264 22.000 10.6% 4000 25.7% 27.000 20.029 18.171 1.792 9.20% 40.57% 62.500 3.989 48.000 ` crores 23.000 4.000 30.2% 35.5% 32.894 37. In addition.623 Dividends 37.844 6.0% 10.0% 31.000 1.000 6.Increase in gross block The gross block of the Company has increased 10 times in nine years.620 50.0% 40.448 11. showing a 6-fold increase in nine years.500 9. OPERATIONAL EXCELLENCE Revenue trend Revenue in f is c al 2013 gr ew t o ` 62. substantial special dividends were declared for two of the last four fiscals.325 27.0% 36.500 1.000 60.7% 1820 5024 25.198 3. Cash usage 70.57 billion).813 30.27%. as much as 41.292 5.0% FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 1603 2287 3189 20.0% 5000 ` crores 7.0% 30. Dividend Dividend for the year (including final dividend and dividend distribution tax) and payout ratio have remained high.57% has been distributed to the shareholders as dividend (final dividend to be paid post fiscal 2013 not considered).99% Dividends Paid Capex AcquisiƟons Invested Funds FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 Management Discussion and Analysis 35 .951 4.

Revenue-geography 23.000 16.0 10.0 70.1 24.090 30.0% 25.1% 28.2 71.000 4.7% 18.0% 15.5% 27.4 50.5 71.000 16.000 22. Management of costs In spite of increases in the compensation package over the years.4 52.0% 10.000 Americas FY05 FY06 FY07 Europe FY08 FY09 India FY10 FY11 FY 12 Others FY 13 36 Management Discussion and Analysis . ZĞǀĞŶƵĞͲŝŶĚƵƐƚƌLJǀĞƌƟĐĂů 24.000 PBT 35.923 20.4 Percentage ` crores 14. Earnings trends Profit before tax (PBT) has grown by almost 7 times in the last nine years.3 22. CAGR in emerging markets such as Asia-Pacific and Middle East & Africa has been more than 35%. CAGR in retail & CPG (40%).000 8.0% PBT Margin % ` Crores 36.0 20. BFSI (30%).918 2.6% 25.0 20.000 8.4% 26.000 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 Profit Before Taxes PBT Margin 3.000 4.000 17.0% 13.1 72.000 4.1 20. which is reflected in manpower as well as non-manpower costs.2 50.000 28.000 11.0% 20. telecom (23%) and other verticals (24%) were significant.021 11.8 74.0 40.000 14.1 48.3 24.000 32.7 20.000 24.000 2.8% 22.2 26.7 26.5 74.634 2.0 30.0% ` crores 20. The Company has been able to continuously strengthen its cost management processes.0 46.000 18.1 70.Annual Report 2012-13 Growth in industry verticals Over the last nine years all industry verticals grew at double digit CAGR.000 10. The Company has been successful in pursuing profitable growth over the years.000 5.000 12.846 5.0 70.5 50.000 BFSI Telecom Retail & CPG Manufacturing Others 50.150 5.000 20.000 12.290 8.1 50.9 19.5% 28.507 6. employee cost in relation to revenue has been steady.0 45.0 71.000 6.2 72.000 26.0 60.2 50. CAGR in Americas and Europe has been more than 25%.7 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 Manpower expenses Non manpower expenses Total expenses FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY 12 FY 13 Growth in geographic revenue Over the last nine years.000 Expenses as % of revenue 80.3% 27.000 8.0% 29.

1956 and Generally Accepted Accounting Principles in India (Indian GAAP). 2013. 2004.(CONSOLIDATED) Tata Consultancy Services Limited was listed on ‘National Stock Exchange of India Limited’ and ‘BSE Limited’ on August 25.FINANCIAL PERFORMANCE . The consolidated results are more relevant for understanding the performance of the Company. registering a growth of 28.83 crores in fiscal 2012). The revenue of the Company aggregated ` 62. which depicts the performance of the Company.48 crores in fiscal 2013 (` 48. (i) The consolidated financial results of Tata Consultancy Services Limited.SUMMARY The following discussion and analysis should be read together with the consolidated Indian GAAP financial statements of Tata Consultancy Services Limited for the financial year ended March 31. incorporated in India. Other significant financial parameters are: s 4HE #OMPANYS EARNINGS BEFORE INTEREST. Significant accounting policies used for the preparation of the financial statements are disclosed in the notes to the consolidated financial statements 2 (a) to (q). Revenue in USD in fiscal 2013 was 11. 2011. The financial results of the Company as per Indian GAAP are discussed in two parts.57 billion (USD 10.893.989. (ii) The unconsolidated financial results of Tata Consultancy Services Limited. CONSOLIDATED FINANCIAL RESULTS .17 billion in fiscal 2012). including all its subsidiaries across the world. The financial statements of Tata Consultancy Services Limited (‘TCS’ or ‘the Company’) are prepared in compliance with the Companies Act. excluding the performance of all its subsidiaries. The Company follows the revised schedule VI as notified by the Ministry of Corporate Affairs (MCA) with effect from April 1.83%.

TAX.

31 crores in fiscal 2012) – a growth of 29.77%.024.49 crores in fiscal 2012) – a growth of 33.923.31 crores in fiscal 2012) – a growth of 24. 4HE#OMPANYSCONSOLIDATEDEARNINGSPERSHARE%03 were ` 70.97%. s s s s Management Discussion and Analysis 37 .81 crores in fiscal 2012).039.06 crores (` 5.99 in fiscal 2013 (` 53.91 crores in fiscal 2013 (` 14. 4HEPROlTBEFORETAX0"4 AGGREGATED ` 18. depreciation and amortisation (EBITDA) excluding other income aggregated ` 18.92%.07 in fiscal 2012) – a growth of 33.435.65%. 'ROSSDIVIDENDPAIDPROPOSEDFORTHElSCALIN respect of equity shares aggregated ` 5.31 crores (` 10.73 crores in fiscal 2013 (` 13.686.917. 4HE NET PROlT AFTER TAX 0!4 FOR lSCAL  aggregated ` 13.089.413.

24 6.089.989.Annual Report 2012-13 DISCUSSIONS ON CONSOLIDATED FINANCIAL RESULTS The following table gives an overview of the financial results of TCS Limited (consolidated): (` crores) Fiscal 2013 ` crores Revenue from operations Expenses Employee benefit expenses Overseas business expenses (employee allowances paid overseas) Services rendered by business associates and others Employee and BA related expenses Overseas business expenses (other than employee allowances paid overseas) Operation and other expenses Total expenses Earnings before interest.37) (0.76 44.08 1.41 71.90 3.65 29. Fiscal 2013 High Fiscal 2012 % change in average Average Low Average rates 54.739.03 33.96 7. tax.12 77.89 11.89 70. 38 Management Discussion and Analysis .31 38.98 56.42 1.23 48.31 3.26 48.523.64 1.66 34.26 22.13 (1.04 8.45 24.097.22 21.60 820.52 0.52 5.48 29.70% was earned in foreign currencies.55 85.132.50 73.94 12.30 13. 92.04 1.39 50.49 37.893.93 AUD 58.83 (0.86 10.923.178.00 28.76 80.91 1.28 13.56 50.65 62.43 66.83 % of % growth revenue 100.45 109.05 1.12 The growth in volume in fiscal 2013 was lower than that of fiscal 2012 primarily on account of continuing global economic uncertainties and lower discretionary spending by customers.65 57.88 28.06 33.52 14.014.399.38 13.65 28.53 55.50 5.36 28.37 22.079.85 57.89 52.73 4.763.435.30 13.685.71 28.83 Fiscal 2012 (%) 23.33 50.11 2.30 29.69 32.61 27.65% in fiscal 2013 (7.458.54 4. GBP.075.87 0.36 48.949.94 13.414.88 11.29 30. Fiscal 2013 witnessed strong volatility in exchange rates particularly affecting USD.52 89.96 620.36 11.87 31.92 18.94 55. CAD and AUD.04 14.48 % of revenue 100.99 31.96 21.00 USD GBP EUR CAD 24.23 917.551. depreciation and amortisation (EBITDA) Other income (net) Finance costs Depreciation and amortisation expense Profit before tax (PBT) Tax Expense Profit for the year before minority interest Minority interest Profit for the year (PAT) Revenue Analysis of revenue growth Growth attributable to Volume Realisation Mix (onsite / offshore) Impact of exchange rate Total growth Fiscal 2013 (%) 16.02 66.65 1.17) 7.039. Impact of exchange rate fluctuation was positive.57 18.69 158.33 56.07 25.039.17 22.52 0.881.443.92 18.59 28.90 6.27 54.78 70.413.96 10.99% in fiscal 2012).09 18. Net impact of such strong volatility in exchange rates on revenue of the Company has been a positive variance of 12.17 12.74 35. Out of the total revenue earned in fiscal 2013.35 0.00 Fiscal 2012 ` crores 48.97 175.31 428.93 44.28) 12.83 Movements of exchange rates of major currencies are given below.917.49 1.13 17.18 118.72 6.48 6.88 0.

338.80% in fiscal 2013.76 7.16 41.31 15.52 43.08 8.28 4.064.976.73 17.26 16.35% Asia-Pacific 7. ‘Others’ includes (a) hi-tech (b) life sciences and healthcare (c) travel.06 40. transportation and hospitality (d) energy.112.00 % growth 27.35 2.13 100.928.00 Revenue by geography Revenue by services Geography revenue 2012-13 LaƟn America 3. the United Kingdom and Europe continue to be major contributors.505.00 % growth 29.042.67 11. Application development & maintenance (ADM) continues to be the major contributor.890.453.62 22.63% in fiscal 2012).20% Business process B outsourcing 12.13 1.48% ZĞǀĞŶƵĞďLJƐĞƌǀŝĐĞƐ ConsulƟng 3.71% IT infrastucture services 11.49 7. media and entertainment and (5) others.25 7. During fiscal 2013.47% UK 17.37 27.31 48.67 2.20% in fiscal 2006).70 62. IT infrastructure services.698.24 10.30% of the Company’s revenue in fiscal 2013 (78.697.56 1. Management Discussion and Analysis 39 . financial services and insurance (2) manufacturing (3) retail and consumer packaged goods (4) telecom.76% Middle East and Africa 2. Revenue by geography Fiscal 2013 ` crores North America UK Europe India Asia-Pacific Latin America Middle East and Africa Total 33.13% Asset leverage soluƟons 2.24 4.89 1.13 100. Among other markets.48 % of revenue 52.62 29.29 3.46% India 7.989.70% Engineering and industrial services 4.893.29 5.61% 1% Assurance services 7. Middle East and Asia-Pacific also grew in line with the Company growth rate.83 Fiscal 2012 % of revenue 53. Service lines which registered significant growth during fiscal 2013 were consulting.202. although its relative contribution to the total revenue has come down over the past years (42.34 50.38 31.07 4. BPO and assurance services. Revenue from these markets constituted 79.83 ` crores 26. 58.03% ApplicaƟon development and maintenance 42.Revenue by industry Major industries contributing to revenue of the Company are (1) banking.08% North America 52.49% Enterprise soluƟons including business intelligence 15. Industry wise performance is discussed in segment results section.215.80% Europe 9.34 21.29%. revenue from all industries showed double digit growth rates.73% North America.44 44.44 28.29 28.25 4. Latin America had an impressive growth of 40. resources and utilities.08 9.758.08 2.38 10.46 3.60 7.56 3.

00 % growth 26.01% Other 7.853.396.87 7.00 Expenses ŽŵƉŽƐŝƟŽŶŽĨĞdžƉĞŶƐĞƐ;йŽĨƚŽƚĂůĞdžƉĞŶƐĞƐͿ Employees overseas 15.575.33% S/W .61 2. Off-site revenue reflects the aggregation of revenue from services which are performed at delivery centers located in India (referred to as offshore revenue) as well as global delivery centers (GDC) in various countries.66 10.16 100.229.989.57 4.04 15.11 7.51) 51.06 7.75 11.70 3. employee related costs included in ‘overseas business expenses’ and costs related to business associates (BA) have been grouped under ‘Employee and BA related costs’. It also includes expenses incurred on staff welfare.53 25.67 1.53% Taxes 8.16 54.908.96 44.47 15.47 1.879.700.99 45.14 9.84 2.20 4.643.99% Employee costs and overseas business expenses Employee costs include salaries which have fixed and variable components.28 32.260.30% Employees India 47.00 % growth 23.20 11.83 ` crores 21.657.879.06 46. 40 Management Discussion and Analysis . contribution to retirement funds and pension schemes.45 5.39 100.01 100.51% Travelling and Conveyance 1.00 Fiscal 2012 (%) 52.97 33. fixed time contracts has remained steady with the former going up marginally in fiscal 2013.46 31.63% CommunicaƟon expenses 1.02 48.00 Others 28. H/W & material 5.83 1.03 100.48 % of revenue 42.00 Fiscal 2012 50. Mix of revenue from these locations has remained steady.856. offshore and off-site are aligned with customer requirements.73% BA Costs 7.258.49 28. Revenue from on-site.17 28.62 3. The composition of the Company’s revenue from on-site.58 100.16% Rent 2.62 47.65 5.84 47.60 (9.38 100.960.893.76 62. offshore and off-site was as follows: Revenue mix (% of revenue) Offshore India Off-site GDC Total Off-site Total On-site Total Fiscal 2013 49.45 4.81% The mix of revenue from time and material contracts and fixed price.904.Annual Report 2012-13 Revenue by services Fiscal 2013 Service lines Application development and maintenance (ADM) Business process outsourcing (BPO) Enterprise solutions (ES) including business intelligence (BI) IT infrastructure services (IT IS) Assurance services Engineering and industrial services (EIS) Asset leverage solutions Consulting Total ` crores 26. fixed time Total Fiscal 2013 (%) 52.03 38.71 4. Overseas business expenses primarily comprise living allowances paid to employees on overseas assignments.31 1.29 28.20 3.03 55.52 4.42 54.80 12.76 39.77% DepreciaƟon 2.61 45.51 2.29 2.22 45. Revenue by location of service delivery On-site revenue is for those services which are performed at client locations.48 7.919. For purpose of the Management Discussion and Analysis (MD&A).01 26.76 7.83 Fiscal 2012 % of revenue 44.00 Revenue by nature of contracts Nature of contract Time and material basis Fixed price.

63 crores for settlement of a class action suit in the US.551.94 3.24 Employee benefit expenses Overseas business 12.96 Total employee benefit expenses and BA costs have increased by 31.23 crores (` 428.91 crores (` 14.78% in fiscal 2012 to 13.65 27.(` crores) Fiscal 2012 Fiscal 2013 % of ` crores ` crores % of revenue revenue 37. Earnings before interest.30% 81. tax. depreciation and amortisation (EBITDA) EBITDA in fiscal 2013 was ` 18.37%.132.60 56.60% Fiscal 2012 74.881.98 2.414. Utilisation Including trainees Excluding trainees Fiscal 2013 72.11 expenses (employee allowances paid overseas) Services rendered by BA 4.61 and others 55.54 7. primarily attributable to: s INTERESTINCOMEINCREASINGBY.42 Total 35. There was a drop of 0.20% There has been a marginal decrease of 0. mainly attributable to (1) requirement of business associates (BA) with specialised skills at overseas locations and (2) marginal drop in average utilisation as shown below.039. which includes a onetime charge of ` 161.96 38.763.17 crores in fiscal 2012).435. Other income (net) Other income in fiscal 2013 was ` 1.31 crores in fiscal 2012).17 18. The increase in relation to revenue was 1.37% in operation and other expenses as a percentage of revenue (from 13.039.74 5.69%.097.685.41% in fiscal 2013) due to decrease in almost all items of expenses except the item ‘others’.50 6.90 12.88% in EBITDA as percentage of revenue.40% 82.178.94 24. The decrease was primarily attributable to: s s INCREASEINEMPLOYEEAND"!RELATEDCOSTSBY OFFSETBYADECREASEINOPERATIONANDOTHEREXPENSES by 0.23%.

039.74 crores in fiscal 2013 arising out of effective treasury management INCREASE IN EXCHANGE GAIN NET .FROM ` 765.22 crores in fiscal 2012 to ` 1.

18 999.51 Total 8. Software.30 13.53 fees Repairs and maintenance 409.66 0.02 crores in fiscal 2012 to a gain of ` 49.04 crores (1. other than designated cash flow hedges.31 1.65 0. FROM A LOSS OF ` 426.66 366. These expenses increased from ` 620.90 crores (1.77 Electricity 475. are stated at their fair values and the resultant gains or losses are accounted as ‘other income (net)’ in the profit and loss account for the period.76 Recruitment and training 249.16 crores (1.27 crores in fiscal 2013.73 0.85 0.46 2. hedge accounting is discontinued and cumulative gains or losses on such instruments are retained in the ‘shareholders’ funds’ and thereafter transferred to the profit and loss account on maturity of the respective instruments. Changes in the fair value of effective hedges are accounted in the ‘shareholders’ funds’ and the ineffective hedges are accounted as ‘other income (net)’ in the profit and loss account.447.22 1.17% of revenue) in fiscal 2012 to ` 817.17 Legal and professional 460. On maturity in the normal course of a cash flow hedge instrument.28% of revenue) in fiscal 2012 to ` 820.93 Management Discussion and Analysis 41 .30% of revenue) in fiscal 2013.66 1.98 0. Overseas business expenses (other than employee allowances paid overseas) Overseas business expenses (other than employee allowances paid overseas) include travel.91 Travelling and 816. the resultant gains or losses are taken to ‘other income (net)’ in the profit and loss account. marketing and office expenses incurred in overseas locations.739. Such ‘cash flow hedges’ are measured at their respective fair values.75 0.75 968. in accordance with its risk management policies.21 1.165. The Company designates some of its hedges as ‘cash flow hedges’ on completion of the required documentation.219. at the reporting dates.443.30% of revenue) in fiscal 2013.32 223.13 Others 1.57 6. Overseas travel which constituted the largest component.65 conveyance Rent 1.71 0.41 Fiscal 2012 % of ` crores revenue 2.652. On sale or termination of any ‘cash flow hedge’ before maturity. hardware and material costs Communication 766.56 crores (1.20 640.22 346.04 13. Foreign exchange forward and currency option contracts outstanding at the reporting dates.33 1.50 4.75 0.15 4. increased from ` 574. Operation and other expenses Fiscal 2013 ` crores % of revenue 2.30 1.40 2.61 325.54 650.78 s Forward and option contracts: The Company enters into foreign exchange forward contracts and currency option contracts to manage its exposure to exchange rate fluctuations.

The effective tax rate has gone down from 24.19% in fiscal 2013.Annual Report 2012-13 Note 42 to the consolidated financial statements provides details of the Company’s ‘Derivative financial instruments’. Profit for the year The Company’s net profit was ` 13. primarily due to higher profits in some subsidiaries having minority holding.31 crores in fiscal 2012). MAT has been recognised as an asset in the balance sheet.86 crores in fiscal 2012 to ` 4.92 crores in fiscal 2013.65% from ` 917.413.49 crores in fiscal 2012 (21.. Tax expense Tax expense comprises current income tax and the net movement in the deferred tax assets and liabilities from operations in India and foreign tax jurisdictions. With effect from April 1. The increase was spread across all asset groups.38 crores in fiscal 2013.88%. furniture and fixtures. As a percentage of revenue PBT increased from 28. Consolidated segment result The Company considers ‘Industry’ as its primary segment and ‘Geography’ as its secondary segment. Revenue and expenses directly attributable to segments are reported under each reportable primary segment. 42 Management Discussion and Analysis . Tax expense increased from ` 3.e.96 crores in fiscal 2012 to ` 158.30% of revenue). it decreased from 6. Depreciation and amortisation Depreciation and amortisation increased by 17.923.94 crores in fiscal 2012 to ` 1. Provisions of ‘Minimum Alternative Tax’ (MAT) under the IT Act were applicable to the Company’s income excluding its income from SEZ.04 crores in fiscal 2013. i. it would have sufficient tax liabilities to offset the MAT credits during the prescribed carry forward period. (2) increase in other income 0.24% and (2) lower tax 0.31 crores in fiscal 2013 (22.37% in fiscal 2013.09% of revenue) as compared to ` 10.917.24% in terms of revenue is mainly due to (1) decrease in EBITDA 0.079. particularly in computers. In the view of the Company. Minority interest Minority interest registered an increase from ` 109. offset by some of the SEZ units losing status of full exemption on expiry of five years. Tax expense relating to operations is determined in accordance with tax laws applicable in countries where such operations are carried out. 1961 (IT Act).48% in fiscal 2012 to 28.17%.59%.089. operating profit (excluding unallocated expenses) as a percentage of total segment result. Payment of MAT results in tax credit which according to the IT Act can be carried forward for subsequent ten years and adjusted against future tax liabilities. Accordingly. The Company avails tax incentives applicable to Special Economic Zones (SEZ) under the Indian Income Tax Act. As a percentage of revenue. The following table presents each industry segment’s revenue as a percentage of total revenue and each industry segment’s result.014. 2011.99% and (3) decrease in depreciation & amortisation 0. Profit before tax (PBT) PBT in fiscal 2013 was ` 18.73 crores ( ` 13. The increase of 0.399.79% in profitability is attributable to (1) improvement in PBT 0.96% in fiscal 2012 to 6. freehold buildings and office equipment.72% in fiscal 2013. MAT became applicable to income from SEZ also.42% in fiscal 2012 to 22. The increase of 0. primarily on account of reduced tax on lower dividend received by the Indian parent company from its overseas subsidiaries.

146.13 7.539.889.22 43.08 6.495.89 22.00 12.10% In fiscal 2013.36 Others 23. hi-tech (27.47 8.062.77 12.51%). media and entertainment 11.893.014.28 100.23%).09%).81 3.38 100.17 38.202.43 Hi-tech 5.89 27.28% Retail and CPG 13.401.97% Others 4. energy.69 11. BFSI continued to grow at a healthy rate of 28.48 6.73 1.89 ` crores 8.83 1.78 45.29 29.911. media and entertainment Others Total Unallocable expenses (net) Operating income Other income (net) Profit before tax 27.84%).954.871.23 41.10 8. life sciences and healthcare (27.40%). Tighter regulatory regime.00 3.83 11.31 10. evolution of innovative business models.78 43. ongoing consolidation.89 12.25 21. financial services and insurance ` crores WĞƌĐĞŶƚĂŐĞŽĨƌĞǀĞŶƵĞďLJŝŶĚƵƐƚƌLJǀĞƌƟĐĂů Manufacturing 8.54 5.61 14. transportation and hospitality (21.991. BFSI institutions are concentrating on cost optimisation Management Discussion and Analysis 43 .742.089. financial services and insurance (BFSI) Manufacturing Retail & consumer packaged goods (Retail & CPG) Telecom.10 43.14 7.48 818.91 48. Industry verticals which recorded high growth in fiscal 2013 were retail and CPG (41.64 985.52 8.78 62.29 6.362.215.85% Energy and uƟliƟes 3. Telecom including media and entertainment grew at 21.062.98% Life sciences & healthcare 5.08 28.69 24.204.89 1.923.09 1.34 13.07 30.22 48.00 21.014.800.12 986.83 45.28 13.493.71 14.25 21. manufacturing (37.04 Industry segment wise performance Revenue by industry in fiscal 2013 Banking.26%) and travel.34% Telecom.14 24.62 16.313.686. financial services and insurance 43.22 3.31% 23.30 100.22% Fiscal 2013 BFSI revenue % mix of total revenue Segment result BFSI % margin of segment revenue % mix of total segment result Fiscal 2012 % growth 28.(` crores) Segment revenue Fiscal 2013 Fiscal 2012 Fiscal 2013 Fiscal 2012 % growth Fiscal 2013 Segment result Fiscal 2012 Fiscal 2013 Fiscal 2012 % growth ` crores Banking.898.52 23.54% Banking.36 23.23 18.57 3.493.52 44. resources and utilities (19.948.72% Travel and hospitality 3.07 % of segment result 44.42 6.50 1. new technologies and non-traditional competitors offer both opportunities and challenges to transform traditional operating approaches.34 7.580.81 14.146.65 2.63 25.00 13.73 17.31 100.17 13.18 37. pressure on margins.89% over fiscal 2012 due to sustained demand.97 23.20 22.14 428.178.71 28. BFSI companies have left the 2008-09 crises behind and are now evolving new operating models with a focus on rebuilding profitability.989.43 5.22 % of revenue 43.52% in fiscal 2013.

Growth in data services.08% in fiscal 2012) and contributed 44.34 2.889.89 30. Telecom. Retail and consumer packaged goods (Retail & CPG) ` crores Fiscal 2013 Retail & CPG revenue % mix of total revenue Segment result retail & CPG % margin of segment revenue % mix of total segment result 8. media and entertainment % margin of segment revenue % mix of total segment result 7. analytics and social media. In addition.78% of total segment result (45. Cloud based Device Management Platform and Next Generation Analytics platform) for Telcos to leverage their operations.42 Fiscal 2012 5. Ongoing investments in expanding the addressable market have put pressure on segment margins. This has resulted in increased adoption of emerging technologies such as digital. branch process optimisation/digitisation are some of the key related themes.85 10. Cheap internet bandwidth.22 13. telematics. In fiscal 2013.948.69 % growth 21.52% (17. channel integration. big data.14 29.17 48. financial health checks.18 1. media and entertainment ` crores Fiscal 2013 Telecom. Assisted self-services.10% of Company’s revenue (43. mobility.45 13.97 1. In fiscal 2013. WhatsApp and other Over-the-Top services) has been seriously eroding the traditional voice and messaging revenues.20 Media and information services industry is undergoing a digital metamorphosis as organisations transition from primarily being in physical goods business to largely digital products and services businesses. Publishers are undergoing enterprise wide transformations to arrest declining print product revenue growth through growth and bundling of digital product revenue streams.13 % growth 41. retail and healthcare. 44 Management Discussion and Analysis .69 1. Emerging markets still provide growth levers through rural penetration but demand much higher cost efficiencies.14 25. cloud. is driving innovation in bundling media and entertainment services with broadband networks.81 12. and lowered cost of digital production of the audio. Broadcasters are expected to follow a similar journey in the near future.401.09 Fiscal 2013 has been a significant year for the Telecom industry. revenue in telecom. For Telcos.72 14.52 TCS has been investing in a number of growth initiatives as a strategic response to these industry trends and challenges faced by its customers. media & entertainment witnessed growth of 21. media and entertainment revenue % mix of total revenue Segment result telecom. outcome effectiveness among businesses and technological advancements in the areas like cloud computing. this leads to two strong requirements. video and textual content has left no sector within media industry untouched.742.47 12.Annual Report 2012-13 as well as efficiency improvements. BFSI constituted 43.57 3. The Telcos have witnessed emergence of increased demand for mobility among enterprises. while impressive in isolation. namely.64 30. Popularity of substitute products (such as Skype.26 12.204. provides little impetus to overall revenue growth compared to the traffic growth. Launch of 4G networks and high speed broadband access. s s 11. (a) operational cost and efficiency management and (b) renewed focus on segmented customer experience management.580. We expect continued non-linear growth through these platforms INVESTMENTSINLABINFRASTRUCTURETOSUPPORTNETWORK operations services create opportunities to partner with enterprise vendors in the services business FOCUSONCOLLABORATIONINTHEAREASOFINFRASTRUCTURE services. the institutions are also focusing on strengthening risk management.954. core system modernisation and data management capabilities. The key initiatives are: s DEVELOPMENT OF NICHE PLATFORMS #LOUD BASED Telecom-In-a-Box.36% in fiscal 2012).539. SMB platforms and other applications for industry verticals like banking.24% in fiscal 2012).71 Fiscal 2012 6. rapid proliferation of smartphones and digital tablets. These platforms are already being used by pilot customers.

strengthening of customer experience and focused deployment in emerging markets such as Asia Pacific and Latin America.65 26.28 1. resulting in project delays. We also continue to invest in developing our own Intellectual Property for addressing industry needs. Manufacturing ` crores Fiscal 2013 Manufacturing revenue % mix of total revenue Segment result manufacturing % margin of segment revenue % mix of total segment result 5. During fiscal 2013.13 7.89 25.05% in fiscal 2012). companies are aiming at reducing product introduction time. as a result of full services offerings being extended to existing large customers. increasing service levels to customers by optimising parts supply chain.77 985. big data technology and social media & digital marketing innovations in the context of transforming business processes.The Retail & CPG vertical continued its broad-based growth path in fiscal 2013.61 Fiscal 2012 3. There is also increased shift to IT infrastructure outsourcing and BPO services. There is a new wave of initiatives around avionics.22 % growth 37. To keep pace with this change.89 38. Multi-year transformational infrastructure support and managed services engagements in traditional and new technologies with large customers demonstrated the success of our continued focus on rich domain expertise and investment in new technologies. TCS is significantly investing in strengthening the domain and technology expertise in this segment and has been focusing on providing thought leadership to the customers to leverage mobility solutions. there is trend to convert IT related expenses from Capex to Opex. the segment saw sustained focus on creation of ‘Center of Excellence’ (CoEs) in new technologies. Industrial and diversified manufacturing industry: Due to a flat to negative growth outlook in this sector.88% in fiscal 2012). Manufacturing industry revenue had a growth rate of 37.22% of segment revenue (39.56% growth in fiscal 2012). driven by robust long term demand for commercial airplanes. primarily driven by cost optimisation.09% in fiscal 2013 (45.26% in fiscal 2012). customers are showing interest in Cloud and SaaS solutions.362. NextGen air traffic control systems and new product development programmes. Segment results growth were good in fiscal 2013 at 38.23% in fiscal 2013 (38. Domain consultants engaging with leading retailers brought business & technology solutions and thought leadership to customers and helped manage large transformational deals. business intelligence.72% (29. The one dominant trend seen in the industry was in leveraging technology for product and Management Discussion and Analysis 45 . Fiscal 2013 saw large ERP transformation programmes and initiatives.11% in fiscal 2012).215. companies are preparing for a tighter budgetary situation and reduced spend. global distribution systems. use of big data and advanced analytics.94 6.23 service differentiation.52 8. Automotive industry: Automotive industry in North America and Latin American markets has shown good recovery in fiscal 2013 whereas Europe and Asian markets are still struggling.13% over fiscal 2012 (62. Aerospace and defense industry: Aerospace companies in North America had an extremely good year in fiscal 2013. The companies are investing in modernising product lifecycle management (PLM) for manufacturing systems. Chemical and process industry: Companies are trying to increase specialty chemicals business in order to achieve better margins and avoid commoditisation. The segment revenue has shown a healthy growth of 41. supplier consolidation. Also. direct IT spend is being curtailed.54 7. TCS continued to develop its repository of offerings and solutions through its intellectual property to enable retailers to realise customer centric value creation and deliver cross-channel experience to consumers. Segment result as a percentage of segment revenue in fiscal 2013 was 30. and enabling increased connect with customers. and showed growth of 48.800. With uncertainty around US defence budget in fiscal 2013 and beyond. While the traditional IT service remains the focus area.

using genomics and technology as major tools to streamline their molecule discovery and transform the drug development process. TCS’ hi-tech vertical has observed good growth across the service lines with significant momentum in the infrastructure services.340. healthcare reform legislation.Annual Report 2012-13 Others ` crores Fiscal 2013 Others revenue % mix of total revenue Segment result others % margin of segment revenue % mix of total segment result Fiscal 2012 % growth 23. BPO services and enterprise solution space. digital marketing etc to expand and optimise their businesses.81 26. along with cost pressures and a call for preventive care programmes are leading to sweeping changes in the healthcare landscape. acquiring generic firms. The unit is making investments in new technologies and platforms to support its customers 14.98 22. Life sciences and healthcare The pharmaceutical industry is facing increased cost pressure due to patent cliff. touch and gesture based user experiences.16 1. are driving the evolution of a patient-centric healthcare system.202. increased regulations and constrained budgets for R&D.18% in fiscal 2013 (26. process outsourcing and technology expertise has enabled it to effectively serve its customers across the value chain in drug discovery.18 22. big data.71% in fiscal 2013 (37. TCS’ strong domain knowledge. In the United States. the introduction of 40 million uninsured Americans into the health insurance system and the expansion of social media and mobile technology.24 The hi-tech industry saw a structural shift in personal computing industry due to consumers’ growing preference for tablets and smart phones. coupled with speech and contextual awareness.63 Segments combined in ‘others’ comprised: s s s s s (I TECH . Hence these firms are focusing on growth opportunities in emerging markets. have enabled rich interaction with devices.27% in fiscal 2012).33 799.28 3.98% in fiscal 2012).962.78 11.78 19. TCS has leveraged its global business transformation consulting expertise. 23.26 55. Segment margin improved to 27.71 The segments stated above.30 514.38 24. manufacturing and sales & distribution initiatives across the globe. The demand for preventive care and wellness management.871. domain and technical experience and delivery excellence to partner with its customers and help them navigate the changing healthcare landscape.73 27. in aggregate. showed an excellent growth in revenue.686. TCS was ranked as a leader by leading analysts in life sciences drug safety services and genomics.IFESCIENCESANDHEALTHCARE %NERGY. or retail model. New interfaces.31 3. Hi-tech 2.91 23. TCS has also been helping its clients to adapt and leverage new technologies like mobility. drug development. Global economic uncertainty is forcing the hi-tech industry companies to reduce their operations cost with renewed focus on risk management.30 24. The result is a rapid shift from traditional business-to-business (B2B) models to a business-to-consumer (B2C).991.

RESOURCESANDUTILITIES 4RAVEL.

reflecting the Company’s growing domain expertise in these industries: ` crores Fiscal 2013 Hi-tech revenue Segment result hi-tech Life sciences and healthcare revenue Segment result life sciences and healthcare Energy.034.04 46 Management Discussion and Analysis .86 27. transportation and hospitality revenue Segment result travel.07 21.64 27.79 1.880.47 999.32 2. resources and utilities revenue Segment result energy.578.40 21. transportation and hospitality 3.02 3.38 2.84 42.61 699.44 % growth 27.57 602.682.93 852.64 1.285.TRANSPORTATIONANDHOSPITALITY /THERS Most of the segments grouped in ‘others’ showed good revenue growth over the prior year.229.835. resources and utilities Travel.51 765.68 Fiscal 2012 2.

replacing their core systems. The business focus remained on the three core tenets of asset reliability.00 295. subscribed and fully paid-up 195. create significant mindshare and win major deals across oil & gas.00 295. mobile application and merchandising technologies. operations predictability and agility in the context of time to market and time to produce. the TTH industry. income and expenses are translated at average rates and the assets and liabilities are stated at closing rate.11 crores as at March 31 2013.51 crores at the end of fiscal 2012. Fiscal 2013 saw companies across these industries trying to overcome these challenges through consolidation and cost control measures. metals and mining by leveraging its domain expertise in the areas of petro-technical integration.529. Solutions that could help in improving efficiency and profitability were amongst the top priority areas for the transportation industry. TCS has been able to achieve credibility in the market place.navigate the complex global environment. TCS is also investing in fundamental research in bio-refining to deliver value to power and smart water networks. FINANCIAL POSITION — CONSOLIDATED Share capital (` in crores) As at As at March 31.00 325. due to volatility in exchange rates of currencies in fiscal 2013. Collaborations are being explored with our academia partners for enhancing grid monitoring and control. building solution framework for energy management as a service (EMaaS). 2012 2013 Authorised 225 crores equity shares of `1 each 100 crores redeemable preference shares of ` 1 each Total Issued. 2012 to ` 972.72 100.72 195.54 crores as at March 31. The Company continues to make investments to develop industry specific offerings. we are developing solutions to address the requirements for SMART water networks. arising out of cash flow hedges as at March 31. There has been an increased demand for transformational projects from hi-tech customers. March 31. 2013 was a net gain of ` 46. was affected by the macro-economic conditions globally.00 100. The Company continued to invest in its joint labs with academia to develop power system network and smart grid related niche applications. 2012). Companies continued to invest in IT.72 crores equity shares of ` 1 each 100 crores redeemable preference shares of ` 1 each Total Reserves and surplus For the purpose of consolidation of subsidiaries with the financial information of the holding company.00 325. an increase of 30. ` 1.79 crores was transferred to the general reserve from the profit and loss account for fiscal 2013.72 100. supply chain and analytics.72 225. upgrading their enterprise platforms. Along with our co-innovation network partners and our labs. Note 42 to the consolidated financial statements gives details of movements in the hedging reserve account.96% over ` 29.01 crores.11 crores (` 133.350.160. Foreign currency translation reserve increased from ` 779. 195. 2013 was ` 29.97 crores ( ` 22. Reserves and surplus at the end of fiscal 2013 stood at ` 38. TCS captured a fair share of these opportunities and acquired new clients during the year. preference dividend. tax on dividends and transfer to general reserves. oil field services.00 100. TCS has invested in building template solutions in customer service transformations with leading technology product vendors.42 crores as at March 31. Balance in statement of profit and loss as at March 31. Energy. downstream operations.00 225.09 crores net loss as at March 31.283. as part of research solutions on wide area measurement systems (WAMS) and analytics for grid reliability. The closing balance of hedging reserve account. 2012) after appropriation towards equity dividend (interim and proposed final dividend). domain capabilities and in other areas that would enable it to serve its clients better and grow in future. Travel. Use of such different rates for translation gives rise to exchange difference which is accumulated in foreign currency translation reserve.00 Management Discussion and Analysis 47 .352. There was an all-round growth from most of the client relationships. being cyclical in nature. transportation and hospitality (TTH) In addition to their own industry-specific challenges. The Company has added several new customers to its portfolio and won several large deals from within the existing customer base. resources & utilities The industry fundamentals remained very strong throughout the year.

As at March 31.02 0.89 129. As percentage of revenue. Deferred tax assets are created against certain items such as employee benefits.52 130.45 crores as at March 31.01 71.04 2.01 71.89 0.81 1. jurisdiction-wise. 2013 (` 112. March 31. 2013 (` 2.449.22 crores (` 256.46 1. tax jurisdiction-wise.28 As at As at As at As at March 31.long term maturities of finance lease obligations Unsecured loans .65% last year to 7.26 48 .99 10.52 crores as at March 31. The Company’s secured loans / bank overdrafts are secured against trade receivables.26 98. 2012 2013 Other current liabilities Income received in advance Advance received from customers Other payables Other liabilities Total Other current liabilities Current liabilities increased to ` 3.410.48 crores as at March 31. Note 6 to the consolidated financial statements brings out details of component-wise deferred tax balances where the net values result into liabilities or assets.00 1.00 0.04 crores as at March 31.02 129. (` in crores) As at As at As at As at As at As at March 31.506.01 crores as at March.46 crores as at March 31. These are secured against fixed assets obtained under finance lease arrangements. Deferred tax liabilities (net) and deferred tax assets (net) As stated in the accounting policies.26 98.81 crores as at March 31.28 crores as at March 31. deferred tax assets and liabilities are offset.30 296.99 367. Income received in advance represents advance billings to customers not recognised as revenue Management Discussion and Analysis 966. 2012).93 966. 2013.Annual Report 2012-13 Short-term and long-term borrowings The Company’s long-term obligations under finance lease (refer note 5 to the consolidated financial statements) were ` 129.52 823. March 31. March 31.51 823.93 401.74 2. s )NCREASEININCOMERECEIVEDINADVANCE` 966.63 286.89 112. March 31. 2012 to ` 4.52 211.983. 2012 2012 2012 2013 2013 2013 Short-term borrowings Long-term borrowings Total borrowings Secured loans repayable on demand from banks Unsecured loans repayable on demand from banks Secured loans.081.61 2.081. March 31. 2012).46 1.93 33.78 crores as at March 31. March 31.707.495. 2012 2012 2013 2013 Other long-term liabilities Total other liabilities 367.35 306.250. representing payables for purchase of goods and services increased from ` 3. 2013. 2013 (` 823.00 1.72 19. The net deferred tax liabilities were ` 235. 31.02 80.76 116.61 crores as at March 31. 2012).447.61 2.06% in the current year. The primary reasons for the increase are given below.983.76 115. March 31. Deferred tax liabilities are created against certain items such as foreign branch profit and depreciation & amortisation. The Company assesses the likelihood of deferred tax assets getting recovered from future taxable income.33 3. depreciation & amortisation and provision for doubtful debts.26 crores at March 31.21 80. 2012). the net deferred tax asset had a balance of ` 310.98 112.81 1.other borrowings Total Trade payables (current liabilities) Trade payables (current liabilities). trade payables have increased from 6. March 31. Other current and long-term liabilities (` in crores) As at As at March 31. 2013 ( ` 173.410.37 80. March 31.32 3. 2012).

March 31. 2013 (` 202.274 seats as at March 31.99.39 19. 2012) TAXONDIVIDEND ` 455.46 641.10 3.97 crores as at March 31. 2013 (` 1. The Company has successfully put in place state-of-the-art facilities at Mumbai.00 455.544.944.86 crores in fiscal 2012).07 crores as at March 31. 2012) and (4) fair values of foreign exchange forward and currency option contracts ` 72.14 Long-term provisions 348. The Company has also initiated construction of large delivery centers across 17 locations in India.153.92 crores (` 217.92 348. 2012). 2012 2012 2012 2013 2013 2013 Short-term provisions Provision for employee benefits Proposed final dividend on equity shares Proposed final dividend on redeemable preference shares Tax on dividend Current income taxes (net) Total 804. Fixed assets Additions to the gross block in fiscal 2013 amounted to ` 2.79 Short-term and long-term provisions The decrease in short-term provisions was mainly attributable to: s s PROPOSED FINAL DIVIDEND ON EQUITY SHARES ` 2.65 410.72 crores as at March 31. 2013 (` 296.34 crores as at March 31. 2012).20. (` in crores) As at As at As at As at As at As at March 31. March 31.41 crores as at March 31. 2012). s Other long-term liabilities Other long-term liabilities increased to ` 367.544.131. 2013 (` 524. Other payables include (1) statutory liabilities ` 866. 2012) primarily comprising lease rental liabilities.87 crores as at March 31.20 4.55 crores as at March 31.65 410. 2013 (` 240.233. Ahmedabad.544.39 19. Chennai. 2012) (3) class action suit settlement ` 161.16 crores as at March 31.45 3. Hyderabad and Pune for significant capacities across locations in India.22 2.775 (1.65 crores as at March 31.00 524.s )NCREASEINOTHERPAYABLES ` 1983.65 crores as on March 31. The number of seats available in India including trainees as at March 31.93 crores as at March 31.65 217.07 4.735. The increase was primarily attributable to: s s INCREASEINCAPITALCREDITORS ` 54. which are presently at different stages of completion.131.38 crores as at March 31.63 crores as at March 31.20 4.07 408.99 crores as at March 31.10 crores as at March 31.05 crores as at march 31. 2013 (` 31. 2012).495.582.65 Total provisions 1. 2013 ( ` 167. 2012) INCREASEINOTHERLIABILITIES ` 313.274.38 859.86 crores (` 1. 2013 ` 348.131. 2012) was attributable to employee benefits such as gratuity and other retirement benefits.727.07 408. 2012) (2) capital creditors ` 249. The Company has embarked on a large scale infrastructure development across various locations in India to meet its growing business needs. 2012).07 4.63 crores as at March 31. Bengaluru. 2013 ( ` 612.00 455. March 31. 2012) )NCREASEINOTHERLIABILITIESMAINLYONACCOUNTOFCURRENTMATURITIESOFlNANCELEASEOBLIGATIONS ` 20.55 22. Management Discussion and Analysis 49 .93 crores as at March 31. 2013 (` ‘Nil’ as at March 31.07 crores as at March 31. 2013 ( ` 3.92 217.39 crores as at March 31.00 524.03 crores as at March 31. 2013 (` 9. March 31. The increase in long-term provisions as at March 31.14 2.65 crores as at March 31.55 22. March 31. 2013 was 2.

04 5.01 crores INCREASEININVESTMENTS ` 547.85 968.535. 2012). have been amalgamated with the Company with effect from April1. 2013 stood at ` 3.204.00 1.28 7.33 2.29 11.380. if there are indications for impairment. 2012 and October 1. 2012).382. 2013 constituted 5. trade receivables were at 22.240. March 31. UBR as at March 31.34 1.86 7.09 crores as at March 31.56 1.35% as at March 31.801.751.233.78 crores.684.27 crores as at March 31.24 14. since these offered relatively good yield with minimum risk INCREASEINCASHANDBANKBALANCES ` 29.704.78 1.01 crores.21 crores during fiscal 2013. 2012 to ` 14.98 775.40 .763.350. Such goodwill is tested for impairment annually or more frequently. 2013 (23.46 crores as at March 31. Significant acquisitions over the years which resulted in goodwill were TCS e-Serve Limited.87 3. March 31.77 4.30 2. TCS Financial Solutions Australia Holdings Pty Limited.543.29 1.09 Investible funds went up by ` 3. TCS Do Brazil Ltda.28 7. in terms of scheme of amalgamation sanctioned by the High Court of Judicature at Bombay. As a percentage of revenue. 2012 respectively.411. Acquisition / amalgamation Details of acquisitions and divestments are given in note 30 to the consolidated financial statements. Most of these acquisitions are contributing significantly to the overall financial performance of the Company.18 crores (`10.38 crores. March 31.80 652.99 3. 2012 2012 2012 2013 2013 2013 Current Non-current Total funds invested Investments Deposits with banks Inter-corporate deposits Cash and bank balances Total 929.56% as at March 31. arising out of a strategy to maximise yield on funds invested INCREASEININTER CORPORATEDEPOSITS` 2.204.Annual Report 2012-13 Goodwill on consolidation Goodwill on consolidation represents the excess of purchase consideration over net asset value of acquired subsidiaries on the date of such acquisition.763.27 10. Retail Full Serve and CRL.28 3. Unbilled revenue Unbilled revenue (UBR) increased by ` 912.581.947.40 3.233.556.1. The significant development in fiscal 2013 was the acquisition of 100% shares of Computational Research Laboratories Limited (CRL). March 31.608.02% of the revenue (4. Goodwill on consolidation as at March 31. Switzerland Ltd. Trade receivables (net) Trade receivables increased by ` 2.08 281.60% as at March 31. Diligenta Limited and Tata Consultancy Services. The Company monitors trade receivables closely.560. 2012). 2013).50 crores (` 3.962. 50 Management Discussion and Analysis . March 31.684.313.29 574.801. both wholly owned subsidiaries.78 933. Overview of funds invested (` in crores) As at As at As at As at As at As at March 31. mainly driven by s s s s INCREASEINDEPOSITSWITHBANKS ` 634.29 crores during fiscal 2013.897.

71 crores primarily due to increased security deposits s OFFSETBYDECREASEINLONG TERMINTER CORPORATEDEPOSITS ` 281.41 crores s INCREASEINOTHERITEMS ` 208. 2013 (` 2.91 Future finance lease receivable less unearned finance income Interest receivable Other non-current assets Other current assets Total Other current and non-current assets as at March 31.36 10.74 346.95 204.856.67 crores arising out of (1) increase in short-term loans and advances ` 3.27 358.130. March 31.24 0. Other current and non-current assets (` in crores) As at As at As at As at As at As at March 31.15 457.406.465.45 crores. mainly driven by payments made against demands from tax authorities.821.48 crores s INCREASEINFAIRVALUESOFFOREIGNEXCHANGEFORWARDANDCURRENCYOPTIONCONTRACTS ` 35.47 2.44 crores.93 2. The increase in long-term loans and advances was primarily attributable to s INCREASEIN-!4CREDIT` 374.40 crores.229.844.717.06 1.28 crores as at March 31.15 26.717.99 1.04 491.15 2.44 2. The increase in short-term loans and advances was primarily attributable to s INCREASEININTER CORPORATEDEPOSITS ` 3.86 5.479.78 1.87 37.708.1.25 9.00 8.48 26.49 1.68 11. 2012).70 180.04 803.Short-term and long-term loans and advances (` in crores) As at As at As at As at As at As at March 31.592.55 crores.684. March 31.61 792. March 31.684.99 crores as at March 31.96 1.156.14 1.472.11 .06 1.704.406.40 3.860. March 31.96 2. mainly due to increase in profit arising out of SEZ units which is subject to MAT effective April 1.65 346.46 6. March 31. 2012 2012 2012 2013 2013 2013 Other current Other non-current Total other assets assets assets 1.346. which have been contested by the Company s INCREASEINCAPITALADVANCES ` 145.209.22 crores and (2) increase in long-term loans and advances ` 754.032.11 212.13 2. March 31.50 4. arising out of higher capital outlay in fiscal 2013 s INCREASEINOTHERITEMS ` 65.93 765.64 5.64 131.93 0.79 679. 2013 were lower by ` 54.40 2.29 652.88 562. March 31.51 2.70 crores.79 628.42 799.78 341. 2011 s INCREASEINADVANCETAXNETOFPROVISIONFORTAXES ` 450.78 crores s INCREASEINPREPAIDEXPENSESRELATEDTOLARGEPROJECTS ` 315.15 3.13 1.12 933.850.09 491.03 crores primarily on account of decrease in long term bank deposits offset by higher interest receivable.476.454. March 31.13 580.00 815. Management Discussion and Analysis 51 .61 1.06 4.488.43 3.17 0.055. Other non-current assets included bank deposits ` 2.411. March 31.13 32.89 32.40 1.417.234.840.24 430.417. 2013 increased by ` 4.253. 2012 2012 2012 2013 2013 2013 Short-term loans and Long-term loans and Total loans and advances advances advances 171.83 1.42 3.09 1.00 crores.82 Loans and advances to employees (net) Advance tax [including refund receivable (net)] MAT credit entitlement Inter-corporate deposits Prepaid expenses Capital advances Others Total Loans and advances as at March 31.90 4. March 31.307.70 281.

Cash generated from operations.45 crores of tax refunds received in fiscal 2012 by subsidiary.36 crores in fiscal 2012) was used in working capital to meet the expanding business requirements. as reflected in the consolidated statement of cash flow.50%. is summarised in the table below.66) (2. Summary of cash flow statement: (` crores) Fiscal 2013 Net cash provided by/ (used in) Operating activities Investing activities Financing activities Exchange difference on translation of foreign currency cash and cash equivalents Net (decrease)/increase in cash and cash equivalents after translation 11.81) Interest received Other items (net) Net cash used in investing activities Fiscal 2012 in fiscal 2013 under protest against contested demands for earlier years and (4) absence of ` 261..766.614.729.039. Interest received on funds invested went up by 90. post adjustments to profit before tax. The incremental taxes paid in fiscal 2013 include (1) additional ` 577.766.80 (156.28) (2.37) 798.05 150.436.17 In fiscal 2013.27 Fixed asset (net) Other investments (net) (152.64) (3.955.48) (3.458.17 (6.987.891.13 crores of advance tax paid by some subsidiaries on their higher income.54) (3.96 6.31) Fiscal 2012 917.614. special dividend and tax thereon for fiscal 2012 approved by the shareholders at the last Annual General Meeting.84) (63.17 crores in fiscal 2012).16) (13. The resultant net cash inflow from operating activities was ` 11.085. offset by (1) absence of ` 293.90 Fixed deposits with banks (net) having maturity over three months Inter .923.16 crores paid for purchase of shares from minority shareholders of a subsidiary. (3) ` 250.corporate deposits (net) (` crores) Fiscal 2013 Profit before tax Adjustments: depreciation and amortisation Other non-cash adjustments Non operating income (net) Effect of working capital changes Cash generated from operations Taxes paid Net cash provided by operating activities 1.31 During fiscal 2013.83 crores paid under protest in fiscal 2012 against contested demands by TCS Ltd and (2) ` 187.09) 48.84 crores of lower tax on dividend received by TCS Ltd from its overseas subsidiaries.079. TCS e-Serve Ltd.62 crores.45) 18.729.955.977.54 crores (` 3.80 crores in fiscal 2013.068.00 crores of advance tax paid by TCS Ltd on its higher income for the year.00 crores paid by TCS Ltd 52 Management Discussion and Analysis (5.31 (222.77 crores in fiscal 2013 registering a growth of 48. has gone up from ` 11.715.727.96 crores (` 6.436. an additional amount of ` 1.751.94 443.085. Cash flows from investing activities (` crores) Fiscal 2013 (520.09) In fiscal 2013.31 crores in fiscal 2012 to ` 798.73 13.48) (3.41) 419.57 (4.821.15) (683.09) (824. inter-corporate deposits and investment in fixed deposits.57 crores in fiscal 2012 to ` 16. investing and financing activities.977. ‘Other items’ included ` 229.27) Fiscal 2012 447. from ` 419.089.614.49 (780. ‘Other items’ in fiscal 2013 includes acquisition of Computational Research Laboratories Limited for ` 162.632.045.45) (5.458.81%. In fiscal 2012.81) (4.92 72.36) 16.36) (2. .40) 11.77 11.727.045.13) 444.93) (5.96 6.95) Cash flows from operating activities (6.97 (1.24 (700. (2) additional ` 145.Annual Report 2012-13 CASH FLOW — CONSOLIDATED The Company’s cash flows from operating.66) (2.977. dividend paid includes the final dividend payout. the significant uses of cash in investing activities were purchase of fixed assets. Cash flows from financing activities (` crores) Fiscal 2013 Dividend paid including dividend tax Other payments Net cash used in financing activities Fiscal 2012 (1.58) (1.

07 53.18 48.027.458.67 9.37 11.31 13.966.05 6.63 15.65 295.573.37 14.92 27.12 6.028.69 7.36 11.429 143.12 197.037.01 11.85 4.212.812.209.04 8.72 18.67 53.771.672.04 704.as reported EPS .148.86 1.75 295.51 33.83 10.24 3.57 2.291.09 18.202.150.694.16 5.30 3.52 3.065.17 1.212.268.633.97 13.733.553.63 3.29 4.48 1.93 8.327.068.089.250.989.99 1.12 1.684.73 13.328.600.62 2.656.11 48.87 4.90 31.187.711.46 5.792.182.42 5.283.81 12.748.045.68 43.62 21.256.37 27.917.682.283.394.949.613.656.620.24 4.34 1.27 46.24 1.82 27.38 295.923.07 5.714 70.897.27 35.447.775.36 4.683.48 58.20 21.020.99 1.08 48.506.182.06 3.26 4.16 47.975.81 5.91 4.886.49 11.813.167.419 66.681.62 9.06 17.69 1.80 22.178.908.53 4.606.83 44.64 7.614 160.46 26.890.28 4.146.039.80 2.62 30.21 17.91 800.57 3.14 9.90 2.544.256.09 7.53 1.989.35 9.30 13.603.000.350.502.90 1.313.02 5.64 35.72 24.88 25.51 16.31 10.31 14.691.63 7.54 1.72 29.09 16.159.381.918.52 18.560.92 37.71 1.83 1.52 20.468.57 24.01 3.05 21.003.889.181.15 15.867.53 60.579.62 1.02 2.384.734.80 6.51 9.597.350.411.921.202.407 89.55 8.28 2.643.41 2.36 25.39 4.COMPANY’s PERFORMANCE TREND (INDIAN GAAP CONSOLIDATED) PERFORMANCE SUMMARY (` crores) Fiscal 2013 Fiscal 2012 Fiscal 2011 Fiscal 2010 Fiscal 2009 Fiscal 2008 Fiscal 2007 Fiscal 2006 Fiscal 2005 Revenue Total revenue International revenue Domestic revenue Revenues from offshore business Revenue by geographic segments Americas Europe India Others Cost Employee cost Other operating cost Total cost (excluding interest & depreciation) Profitability EBIDTA (before other income) Profit before tax Profit after tax Capital accounts (` crores) Share capital Reserves and surplus Gross block Total investments Net current assets Earnings per share in ` EPS .514.90 13.263.289.009.622.457.51 9.93 7.99 70.762.250.569.38 5.138.22 2.619.52 15.480 45.88 1.88 20.24 28.36 6.07 Management Discussion and Analysis 53 .74 2.83 2.111.976.12 11.331.22 1.187.730.46 18.102.21 8.24 6.17 34.93 5.831.99 11.435.62 2.86 13.34 19.413.27 17.91 18.431.75 6.20 6.32 97.429.583 198.805.15 5.544.790.483.949.47 8.170.99 53.86 8.67 35.90 2.001.52 2.08 7.00 6.81 51.340.67 3.685.419.05 9.761 111.57 539.546.08 11.341.33 12.45 3.17 9.169.07 46.adjusted for bonus issue Headcount (number) Headcount (including subsidiaries) as on March 31st 276.84 295.818.597.435.08 1.334.395.02 2.752.843.681.845.497.72 38.893.71 44.54 4.62 8.324.320.614.51 3.65 421.02 197.171.86 15.797.29 22.99 6.76 2.197.95 5.41 7.63 26.33 12.86 12.045.630.576.435.740.196 238.890.026.550.272.607.69 4.934.951.099.05 5.32 62.

97 21.99 22. Days Days % % % % % % 0.36 28.61 24.64 18.90 90.72 21.25 90 90 17.57 % % % % 30.45 22.44 77.79 14.81 10.00 9.01 2.19 22.financial performance International revenue/total revenue Domestic revenue/total revenue Employee cost/total revenue Other operating cost/total revenue Total cost/total revenue EBIDTA (before other Income)/total revenue Profit before tax/total revenue Tax/total revenue Effective tax rate .51 21.76 3.04 2.30 90.00 25.78 0.22 25.55 13.97 13.65 0.00 29.05 29.16 71.09 26.45 23.81 25.97 16.00 28.25 0.Annual Report 2012-13 RATIO ANALYSIS Ratio Analysis Ratios .53 15.48 29.06 2.82 12.70 11.11 3.53 22.50 26.10 0.00 2.00 31.20 50.76 74.60 15.72 6.54 24.35 0.37 22.57 29.97 33.14 14.50 2.78 26.96 25.67 21.22 67.18 18.99 14.95 19.adjusted for bonus ` Dividend payout % (based on consolidated profits) Market capitalisation/total revenue ` Nos.43 24.78 22.07 15.53 4.15 7.54 1.00 65.00 14.94 50.95 29.07 22.53 7.58 21.32 3.67 82 82 36.67 8.48 19.07 10.46 82.84 30.16 31.02 7.53 28.48 42.58 64.30 28.88 71 74 45.06 2.38 19.84 14.01 25.00 36.03 13.22 6.05 3.75 4.64 13.09 91.50 27.03 4.69 18.49 46.31 92.adjusted for Bonus ` Price earning ratio.72 72.58 36.68 71.18 44.42 21.57 13.37 87.17 20.90 25.29 15.48 13.00 20.85 52.05 28.07 7.45 79.55 87.24 77 78 17.89 20.85 17.52 10.14 19.67 70.88 71.94 6.56 14.22 27.15 74.27 25. end of year Dividend per share Dividend per share . ` ` % % 70.26 79 74 26.83 24.64 18.31 46.24 87 87 28.59 50.74 6.14 28.00 7.67 46.27 33.06 11.90 3.55 7.45 24.35 80 82 36.87 31.92 7.06 11.64 28.07 14.08 26.84 3.24 84 88 27.00 35.38 25.25 25.66 86.43 4.84 23.09 0.65 50.00 48.00 35.50 30.54 4.05 Nos.07 N/A N/A N/A N/A % % % % % % % % % % 92.06 30.24 7.58 17.06 14.48 6.04 2.89 3.44 23.00 30.07 22.44 3.50 3.68 15.20 35.76 5.88 53.95 24.00 6.28 Units FY FY FY FY FY FY FY FY FY 2012-13 2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 54 Management Discussion and Analysis .97 18.00 21.01 1.99 70.30 91.23 11.25 17.68 28.00 54.22 86 81 34.30 74.15 72.Balance Sheet Debt-equity ratio Current ratio Days sales outstanding (DSO) in ` terms Days sales outstanding (DSO) in $ terms Invested funds / total assets Invested funds / total revenue Capital expenditure / total revenue Operating cash flows / total revenue Free cash flow/operating cash flow ratio Depreciation / average gross block Ratios .tax/PBT Profit after tax/total revenue Ratios .07 20.86 27.91 16.14 22.81 22.39 4.61 3.68 20. Nos.13 0.87 39.02 4.per share EPS .02 13.75 25.08 4.98 26.80 9.35 8.52 28.45 5.96 9.27 71.50 22.growth International revenue Total revenue EBIDTA (before other income) Profit after tax Ratios .22 91.02 2.49 40.33 10.95 27.16 4.76 50.65 31.05 0.41 8.88 27.66 10.00 22.51 12.58 22.00 2.00 7.18 24.17 24.32 72.04 50.

Other significant financial parameters are: s s s s #OMPANYSEARNINGSEXCLUDINGOTHERINCOME.09%.FINANCIAL PERFORMANCE UNCONSOLIDATED The Management Discussion and Analysis given below relates to the audited financial statements of TCS Limited (unconsolidated).104.426.23 crores in fiscal 2012. registering a growth of 27. 2013 and March 31. 2012. Summary Revenue of TCS Limited aggregated ` 48. The discussion should be read in conjunction with the financial statements (unconsolidated) and related notes to the financial statements for the years ended March 31.14 crores in fiscal 2013 as compared to ` 38.

BEFOREINTEREST.

TAX.

DEPRECIATION.

34 crores in fiscal 2013 (`10.19 per preference share (` 0.306.95 in fiscal 2012). DIVIDEND Decision on dividend is based on Tata Consultancy Services Limited (Unconsolidated) financials which excludes the performance of subsidiaries of TCS Limited. the total dividend for fiscal 2013 would be ` 22 per equity share (dividend for fiscal 2012. Management Discussion and Analysis 55 . registering a growth of 16. registering a growth of 25.ANDAMORTISATION%")4$! aggregated ` 14. The board of directors has recommended dividend of ` 0. A final dividend of ` 13 per equity share has been recommended by the board of directors at its meeting held on April 17. the Company declared three interim dividends of ` 3 per equity share. registering a growth of 16.366.385. 2013.27 crores in fiscal 2013 (` 11. On approval by the shareholders of the final dividend of ` 13 per equity share.48% #OMPANYSPROlTAFTERTAX0!4 AGGREGATED `12. ` 17 per equity share.22 in fiscal 2013 (` 55.975.22 for fiscal 2012). registering a growth of 17. For fiscal 2013.703.49% #OMPANYSEARNINGSPERSHARE%03 WERE ` 65.65% #OMPANYSPROlTBEFORETAX0"4 AGGREGATED `15.98 crores in fiscal 2012). excluding special dividend ` 8 per equity share).18 crores in fiscal 2013 (`13.57%.786.72 crores in fiscal 2012). The board of directors decides on interim dividend based on the performance of the Company during the course of the year.33 crores in fiscal 2012).

42 crores in fiscal 2013.703.551.18 2428.27 1.67 17.51 11.753.70 4.35 10.486.587.68 5.70 25.54 2.09% (32.71 16.03 26.653.04 1.09 2.79 56.14 % of revenue 100.326.68 6.46 29.104.08 27.404.62 802. Sale of equipment and software licenses constituted 3.09 56 Management Discussion and Analysis .43 6.81 25.69% in fiscal 2012). Revenue from sale of equipment and software licenses increased from ` 1.10 27.42% (27.27 28.47 70.975.49 48.68 5.37 0.23 % of revenue 100.18 70.897.69 669.34 35.26 12.97 crores in fiscal 2012 to ` 1.874.00 % growth 27.916.90 1.84 12.26 crores in fiscal 2012 to ` 46.87 14.306.08 (54.72 6.40 688.39 1.03 16. a growth of 27.00 16.385.90 24.119.62 13.87 3.01 41.786.32 2.88 0.98 6.33) 86.65 478.66 32.33 2.426.104.699.24% in fiscal 2012).390.65 336.16 28. tax.38 12.72 257.55 56. an increase of 10.Annual Report 2012-13 DISCUSSIONS ON FINANCIAL PERFORMANCE .16 26.88 21.48 22. depreciation and amortisation (EBITDA) Other income (net) excluding dividend income Dividend income Finance costs Depreciation and amortisation expense Profit before tax (PBT) Tax expense Profit for the year (PAT) Revenue from operations Total revenue increased from ` 38.50 34.817. Revenue from information technology and consultancy services increased from ` 36.12 29. registering a growth of 27. 17.86 15.20% of total revenue in fiscal 2013 (3.366. The following table gives an overview of the financial results of TCS Limited (unconsolidated): (` crores) Fiscal 2013 ` crores Revenue from operations Expenses: Employee benefit expenses Overseas business expenses (employee allowances paid overseas) Services rendered by business associates (BA) and others Total employee and BA related expenses Overseas business expenses (other than employee allowance paid overseas) Operation and other expenses Total expenses Earnings before interest.85 28.08 7.426.98 35.14 crores in fiscal 2013.23 39.51 1.08 6.81 35.95% in fiscal 2012).718.73% in fiscal 2012).081.572.108.UNCONSOLIDATED The Management Discussion and Analysis given below relates to the audited financial statements of TCS Limited (unconsolidated).72 crores in fiscal 2013.18 2.17 13.27 14.121.23 crores in fiscal 2012 to ` 48.06 1.29 0.00 Fiscal 2012 ` crores 38.88 30.73% (32.552.40 13.

75) 58. The increase of 0.61 0.10 0.03 635.08 372.04 11.70 crores (1. The decrease of 0.86 5.934.90 Fiscal 2012 ` crores 13.27 0.39 % growth 25.86 485.50 12.58 292.552.59 (2.38 % of revenue) in fiscal 2013.08 7.99 0.897.52 5.51% was primarily attributable to higher BA costs and lower manpower utilisation.552.08 1.753.27 14.326.01 41.653.69 crores in fiscal 2013.41 1.65 crores in fiscal 2012 to ` 27.16 12.10 24.09 2. hardware and material costs Communication expenses Travelling and conveyance expenses Rent Legal and professional fees Repairs and maintenance Electricity expenses Recruitment and training expenses Others Total Operation and other expenses as percentage of revenue decreased from 12.47% in fiscal 2012 to 12.23% from ` 21. This was mainly due to increase in overseas travel related costs.69 0.00 792.79 28.44 219.68 5.081.79 56.817. Operation and other expenses (` crores) Fiscal 2013 ` crores % of revenue 2.34 901.88 4.67 166.90 24.64 242.10 27.32 1.17 24. These costs as a percentage of revenue were 56.55 56.50 271.486.18% in fiscal 2013.16 28.62 13.14 1.72 6.98 6.98 391.93 0.56 375.67 0.60 1.244.18 Fiscal 2012 % of ` crores revenue 1.39% in fiscal 2012).91 0.486.87 3.26 % of revenue) in fiscal 2012 to ` 669.74 45.68 crores (1.77 170.45 569.72 1.65 % of revenue 35.69 % of revenue 35.29% was primarily due to: s s s s DECREASEINSOFTWARE.47 % growth 16.76 0.572.85 28.06 0.90% in fiscal 2013 (56.64 417.33 23.78 166.23 Total employee and BA related expenses have increased by 28. The rise in BA costs was prompted by the need for specialised skill at overseas locations Overseas business expenses (other than employee allowances paid overseas) Overseas business expenses (other than employee allowances paid overseas) went up from ` 478.08 Software.88 21.587.Expenses Employee and BA related expenses (` crores) Fiscal 2013 ` crores Employee benefit expenses Overseas business expenses (employee allowances paid overseas) Services rendered by business associates (BA) and others Total 17.47 4.

HARDWAREANDMATERIALCOSTS DECREASEINCOMMUNICATIONEXPENSES DECREASEINRECRUITMENTANDTRAININGEXPENSES OFFSETBYANINCREASEINOTHEREXPENSES.

PRIMARILYONACCOUNTOFONETIMESETTLEMENTOFACLASSACTIONSUIT Management Discussion and Analysis 57 .

18 % of revenue 6.00 658.73 0.230.54% of revenue) in fiscal 2013.34% as a percentage of revenue during fiscal 2013 was primarily attributable to: s s s INCREASEINTOTALEMPLOYEEAND"!RELATEDEXPENSES INCREASEINOVERSEASBUSINESSEXPENSESOTHERTHANEMPLOYEEALLOWANCEPAIDOVERSEAS  OFFSETBYDECREASEINOPERATIONANDOTHEREXPENSES (` crores) Fiscal 2013 ` crores Dividend income Interest income Exchange gain/(loss) (net) Others (net) Total 1.29 1.306.14) 0.27 crores (29.44% as a percentage of revenue.88% of revenue) in fiscal 2012 to ` 14.82) 31.37 1. The decrease in the EBITDA of 0.39 % of revenue 2.61 Fiscal 2012 ` crores 2.09 7. depreciation and amortisation (EBITDA) excluding other income EBITDA increased from ` 11.57 (432.44 2.05 Other income (net) The decrease in other income of 2.108.72 crores (29.88 837.02 223. is primarily attributable to: s s DECREASEINDIVIDENDRECEIVED.73 (1.13 4.46 0.Annual Report 2012-13 Earnings before interest. tax.43 2.385.05 61.685.428.

975. The increase in ETR is primarily attributable to certain SEZ units in India entering the second phase of tax holiday.40% in fiscal 2013.43% of revenue) in fiscal 2013. The increase was spread across all asset groups.703.03% of revenue).57% in fiscal 2013.98 crores in fiscal 2012). Profit for the year (PAT) The Company’s PAT was ` 12. furniture and fixtures.366.390.786.17 crores in fiscal 2012 to ` 802. Net profit margin decreased from 28.35 crores in fiscal 2012 (6. to ` 15.84 crores in fiscal 2013 (6.34 crores in fiscal 2013 (` 10.24%.FROMSOMEOFTHESUBSIDIARIESWHOSEBOARDOFDIRECTORSDECLAREDANDPAID dividend to TCS based on their undistributed earnings and future investment plans OFFSETBYINCREASEINNETEXCHANGEGAINLOSS  Depreciation and amortisation Depreciation and amortisation increased by 16.08% of revenue) in fiscal 2012. 58 Management Discussion and Analysis .65% offset by lower taxes 0. The decrease of 2.18 crores (32. The effective tax rate (ETR) has gone up from 17. where tax benefit is restricted to 50% of the first phase of five years.916.88% in fiscal 2012 to 18.41% was attributable to lower PBT 2.81% in fiscal 2012 to 26. electrical installations and freehold buildings.33 crores (35. mainly computer.27% of revenue) to ` 2.86 crores in fiscal 2013. Profit before tax (PBT) PBT increased from ` 13. The primary reasons for the decrease in the PBT as a percentage of revenue of 2. office equipment.65% were: s s s DECREASEIN%")4$! DECREASEINDIVIDENDINCOME OFFSETPARTIALLYBY INCREASEINEXCHANGEGAINLOSS  DECREASEINDEPRECIATION Tax expense The tax expense increased from ` 2.67% from ` 688.

23 crores (` 139. tax jurisdiction-wise.87 As at March 31. 2012) after appropriation towards dividend on equity shares and preference shares.61 crores as at March 31. the net deferred tax asset had a balance of ` 148.00% of the profit after tax in fiscal 2013 amounting to ` 1. Borrowings Long-term borrowings Long-term borrowings as at March 31.74 crores.59 197.66 2.20 crores as at March 31. 2013 ( ` 1. 2013 251. 2012) which are secured against fixed assets.024.266. 2012).59 46. tax on dividend and transfer to general reserves. 2012). issued. 2013 683. 2012 was ` 4.15 Other current liabilities Other long-term liabilities Total other liabilities Other current and long-term liabilities increased to ` 2. As at March 31. 2012). Deferred tax liabilities (net) and deferred tax assets (net) As stated in the accounting policies.47 crores as at March 31.26 crores (‘Nil’ in fiscal 2012). provision for doubtful receivables and loans & advances. 2012) primarily due to finance lease obligations of ` 81. 2012 561.10 crores (` 96. Reserves and surplus General reserve as at March 31.91 1.91 crores.278. 2013 increased to ` 5.15 crores as at March 31.87 251.694.71 crores as at March 31.47 1.53 2.46 1.172.46 crores as at March 31. 2012).71 As at March 31.85 crores (` 18. deferred tax assets and liabilities are offset. On transfer of 10. 2013 (` 152.59 46. Balance in the statement of profit and loss as at March 31. 2013 aggregated ` 83.18 12. 2013 (` 1. 2013 was ` 24.50 1.53 crores (` 24.796.10 crores as at March 31.63 crores (` 1. 2013 (`118. 2012 561. 2012).18 12. The Company assesses the likelihood of deferred tax assets getting recovered from future taxable income. 2013 Income received in advance Advance received from customers Other payables and liabilities Total 683. depreciation & amortisation.235.59 As at March 31. Deferred tax assets are created against certain items such as foreign branch profits. Foreign currency translation reserve was ` 174. 2013. the general reserve as at March 31.96 crores as at March 31.56 As at March 31.097. 2012).49 crores (loss of ` 25. employee benefits.58 crores as at March 31.796.49 crores as at March 31.37%. jurisdiction-wise.11 crores. 2013 were ` 32.280.560. Deferred tax liabilities are created against certain items such as foreign branch profit and depreciation & amortisation.60 crores in fiscal 2012) and adjusting the reserve on account of merger by ` 44.58 crores (` 93.47 1. For details refer note 34 ‘Obligations towards finance leases’ of the unconsolidated notes to accounts.222. The closing balance in hedging reserve account arising out of cash flow hedges as at March 31. The net deferred tax liability was ` 168. an increase of 31.FINANCIAL POSITION – UNCONSOLIDATED Share capital There has been no change in the position of authorised. Note 6 of the unconsolidated notes to accounts brings out details of component-wise deferred tax balances where the net values result into liabilities or assets. Current liabilities increased to ` 2.74 crores as at March 31. 2013 showed an accumulated gain of ` 55. subscribed and paid up capital.424.58 As at March 31. Note 39 to unconsolidated notes to accounts gives details of movements in the hedging reserve account. Reserves and surplus as at March 31. 2012 197.442.23 crores as at March 31.602.424.46 1.56 crores as at March 31.598. as at March 31.172. 2012). Management Discussion and Analysis 59 .598. Other current liabilities and long-term liabilities (` crores) As at March 31.515.

22 crores CLASSACTIONSUITSETTLEMENT.Annual Report 2012-13 The increase in other payables and liabilities was primarily due to: s s s INCREASEINSTATUTORYCURRENTLIABILITIESSUCHAS@6ALUE!DDED4AX6!4 AND@4AX$EDUCTEDAT3OURCE4$3 ` 161.

which mainly comprise liability for compensated absences and FURTHEROFFSETBYINCREASEINCURRENTINCOMETAXESNET ` 39.165.543.15 4.33 crores in fiscal 2012) OFlCEEQUIPMENT.52 154.32 crores. The composition of provisions is disclosed in the table below: (` crores) As at As at March 31.16 crores DECREASEINTAXONDIVIDEND ` 75.544.59 217.00 As at As at March 31.39 19.ANON RECURRINGCHARGE ` 161.07 crores in fiscal 2013 ( ` 325. March 31.47 2. March 31.91 crores.65 257.74 crores were attributable to employee retirement benefits.78 269. 2012).00 3.389.24 4. 2012 2013 Long-term provisions 154.49 crores in fiscal 2013 (` 413.15 3.543. Increase in long term provisions of ` 114.66 crores as at March 31.24 4.94 crores OFFSET BY INCREASE IN PROVISION FOR EMPLOYEE BENEFITS ` 133.63 crores INCREASEINOTHERPAYMENTSANDLIABILITIESMAINLYONACCOUNTOFLEASERENTALLIABILITIES Short-term and long-term provisions Provisions aggregated ` 4. March 31.52 As at As at March 31.41 909.97 crores in fiscal 2012) COMPUTEREQUIPMENT ` 558.79 crores as at March 31.55 22. 2012 2013 Total provisions 661. Fixed assets The significant additions to gross block in fiscal 2013 were: s s s s LANDANDBUILDINGS ` 801.66 511.131. 2012 2013 Short-term provisions 506.165.55 22.79 The decrease of ` 492.65 257.39 19.00 3.87 crores in short term provisions were mainly attributable to: s s s s DECREASEINPROPOSEDlNALDIVIDENDONEQUITYSHARES ` 587.14 511.78 435.01 269.896. 2013 (` 4.59 217.00 Provision for employee benefits Proposed final dividend on equity shares Proposed dividend on redeemable preference shares Tax on dividend Current income taxes Total 435.544.131.63 639.95 2.

ELECTRICALINSTALLATIONS.

25 crores in fiscal 2012) LEASEHOLDIMPROVEMENTS ` 87.08 crores in fiscal 2013 (` 204. 2013 (` 1.51 crores as at March 31.75 crores in fiscal 2013 (` 399. 2012).328. 60 Management Discussion and Analysis .682. The Company entered into contractual commitments with vendors who are executing various infrastructure projects.98 crores as at March 31.59 crores in fiscal 2012).ANDFURNITUREANDlXTURES` 510. The estimated amounts of such contracts remaining to be executed on capital account were ` 3.

90% as at March 31.06 476.44 387.07 978. As a percentage of revenue. 2013 (` 1.31 405.772.74 As at As at March 31.443.92 1.69 718. s Unbilled revenue Unbilled revenue was ` 2.84 365.33 335.982.00 363.421.23 978.32 crores (` 9.54 107.35 crores as at March 31.99 crores in fiscal 2013 were primarily attributable to: s ADDITIONAL INVESTMENTS IN SUBSIDIARIES ` 468. 2012) representing 4.13 As at As at March 31.81 As at As at March 31.62 9.459. 2012 2013 Total loans and advances 327.649.332.60 646.14 170.08 crores.303. 2013 compared to 23. Trade receivables Trade receivables as at March 31.84 1.84 10. 2012 2013 Current investments 533.978.44 387.58 1.80 5.06 9.60 4.00 541.41 5.11% for fiscal 2012).25 crores which mainly comprise (1) increased equity in TCS Iberoamerica SA ` 296.41 5. March 31.72 crores as at March 31.772. March 31.20 4.33 4.26 449. March 31.78 1.84 5.13% as at March 31.39 Increase in total investments of ` 635.34 crores.028.06 149.47 crores as at March 31. trade receivables were at 23. 2012 2013 Total 870.12 1.67 crores.65 3.047. 2012 2013 Short-term loans and advances 140.33 4.58 1.81 1. Short-term and long-term loans and advances (` crores) As at As at March 31.06 1.31 5.36 166.911.147.889.74 4.78 1. March 31.06 40.72 348. March 31.21 541.17 crores. ADDITIONALINVESTMENTSINBONDSANDDEBENTURES ` 158.33 29.541. (3) offset by cancellation of equity investments in Retail FullServe Limited on amalgamation ` 36. 2012 2013 Non-current investments 336.443.09 162.84 370. March 31.567. 2012).60 1.889.202.688.73 693.975.76 5.73 4.05 7.48 6.630.38 26.459. 2013 aggregated ` 11.Current investments and non-current investments (` crores) As at As at March 31.88 4.08 Investments in bonds and debentures Investments in fully paid-up equity shares of subsidiaries and others Investments in fully paidup preference shares of subsidiaries and others Other investments Total 2.332.26 449. (2) increased equity in TCS FNS Pty Limited ` 208. 2012.324.641.08 As at As at March 31.73 23.82 58.55 Capital advances Security deposits Loans and advances to employees Loans and advances to related parties Advance tax (including refunds receivable (net)) MAT credit entitlement Other loans and advances Total Management Discussion and Analysis 61 .48 176.03 4.107.04 365.421. 2012 2013 Long-term loans and advances 327.06 476.76% of revenue for fiscal 2013 (4.

851.53 4.30 1. As at March 31.UNCONSOLIDATED The Company’s growth has been financed largely by cash generated from operations.563.74 14.04 1. The increase was primarily attributable to: s s s s INCREASEIN-!4CREDIT ` 328.280.41 As at March 31.559. 2012 515. 2013.88 As at March 31. The Company has sufficient cash generated from operations for meeting its working capital requirements as well as the requirements for capital expenditure.861. 3.71 crores.75 2. 2012 2.07 62 Management Discussion and Analysis .08 crores of these limits (`1.953. mainly due to increase in inter-corporate deposits and prepaid expenses related to certain large projects INCREASEINCAPITALADVANCES ` 149.025. Banking and financing arrangements As at March 31.510.851.054.10 3.97 crores utilised as at March 31. interchangeable between fund-based and non-fund based limits (`4.90 1.90 14.938.334.term bank deposits Cash and cash equivalents Earmarked balances with banks Total CASH FLOW .34 As at March 31.00 crores as at March 31. the Company had available line of credit with multiple banks aggregating ` 5.60 682.13 2.60 2.00 crores. 2012).13 3.00 318.38 crores.78 323.29 Other current and non-current assets Other current assets Other non-current assets Total Other current and non-current assets as at March 31.14 crores. Cash & bank balances (` crores) As at March 31.75 crores primarily on account of reduction in long term fixed deposits with banks. 2012 388.Annual Report 2012-13 Loans and advances as at March 31.719. which have been contested by the Company INCREASEINOTHERLOANSANDADVANCES ` 3. 2013 697. 2012 126.78 crores.636.16 2.20 As at March 31. 2013 Short . 2013 were lower by ` 461.16 As at March 31.41 388.510. 2013 increased by ` 3. 2013 the Company had utilised ` 1.85 10.54 As at March 31. 2013 29. which is subjected to MAT effective April 1. 2012).184. related to infrastructural facilities in progress. 2013 Interest receivable Long .881.20 crores. mainly driven by payments made against demands from tax authorities. (` crores) As at March 31.068.97 8. mainly due to increase in SEZ profit.term bank deposits Others Total 667. 2011 INCREASEINADVANCETAX ` 481.

63 Investing activities 433. During fiscal 2013.37 crores in fiscal 2013 ( ` 361.48 crores in fiscal 2013 (` 4.98 crores in fiscal 2012).40) (443.174.48) (4.42 crores in fiscal 2013 ( ` 1.250.00 crores paid by TCS Ltd in fiscal 2013 under protest against contested demands for earlier years.84 crores of lower tax on dividend received by TCS Ltd from its overseas subsidiaries. Management Discussion and Analysis 63 .613.15 crores in fiscal 2012) ACQUISITIONOF#OMPUTATIONAL2ESEARCH.482.40 433. s s s The incremental taxes paid in fiscal 2013 include (1) additional ` 577.39 merger Exchange difference on 31.36 Others Net cash (used in) / provided by (3.776.ABORATORIES Limited ` 163.68) translation of foreign currency cash and cash equivalents Net increase / (decrease) in (258.44 2.63 crores in fiscal 2012) from operating activities.482.53 crores in fiscal 2012) DECREASEININCREMENTALWORKINGCAPITALREQUIREMENT ` 1.63 In fiscal 2013.95 3.638.571.47 655.447.36 crores of cash generated in fiscal 2012). significant use of cash in investing activities was primarily attributable to: s s PURCHASEOFlXEDASSETSNET ` 2. offset by (1) absence of ` 293.59 11.16) (3.44 crores in fiscal 2013 (` 2. This is attributable to: s INCREASE IN OPERATING PROFIT BEFORE WORKING capital changes ` 14.17 and cash equivalents Adjustment on account of 3.156.776.69 crores in fiscal 2013 (` 356.174.88 cash and cash equivalents after adjustments Cash flows from operating activities (` crores) Fiscal 2013 Operating profit before working capital changes Effect of working capital changes Taxes paid Net cash provided by operating activites Fiscal 2012 (2.40 crores in fiscal 2012).109.98) Financing activities (5.689.897.109. Cash provided by investing activity was primarily attributable to: s s DIVIDENDSFROMSUBSIDIARIES` 1.98) (3. In fiscal 2013.13 crores in fiscal 2012) INTER CORPORATE DEPOSITSNET ` 2.53 (1.250.613.02 (16.Summary of cash flow statement is given below: (` crores) Fiscal 2013 Fiscal 2012 Cash flows from investing activities (` crores) Fiscal 2013 Fixed assets (net) Acquisition of subsidiaries Trade investments (net) Mutual Funds (net) Inter-corporate deposits (net) Fixed deposit with banks having original maturity over three months (net) Dividends received from subsidiaries (including exchange gain) Interest received Fiscal 2012 Net cash provided by/ (used in): Operating activites 9.80) (3.78 11.82 (361. the Company used ` 3.575.482.92) 9.92) 2.575.98) investing activities 14.95 3.083.83 crores paid under protest in fiscal 2012 against contested demands and (2) ` 187.13) 1. the Company generated net cash of ` 9.083.447.95 crores (` 3.69 (7.20 (163.98 crores for investing activities (` 433.294.655.37) (89.47 crores in fiscal 2012) INTERESTRECEIVEDFROMINVESTMENTSINlXEDDEPOSITS and inter-corporate deposits ` 655.92 crores in fiscal 2013 ( ` ‘Nil’ in fiscal 2012) INVESTMENTINlXEDDEPOSITSWITHBANKSNET ` 89.00 crores of advance tax paid by TCS Ltd on its higher income for the year and (2) ` 250.22) Net increase / (decrease) in cash (289.689.156.15) (163.57 0.23) 18.21) 4.30) 356.55) 110.59 crores in fiscal 2013 (` 11.174.55 crores in fiscal 2013 ( ` 443.36 (3.57 crores in fiscal 2012).42) (1.75) (2.571.156.

It has 64 Management Discussion and Analysis . consolidation and management information purposes which connects to different locations for efficient exchange of information.00) Fiscal 2012 (1. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY The Company has in place adequate systems of internal control commensurate with its size and the nature of its operations. inter alia. Deloitte Haskins & Sells) and the audit committee.24) 80. The Company has appointed Ernst & Young Private Limited to oversee and carry out internal audit of the Company’s activities. The audit is based on an internal audit plan. Processes for formulating and reviewing annual and long term business plans have been laid down. Actual results may differ from such expectations whether expressed or implied.16 crores including dividend tax (` 3. The Company uses a state-of-the-art ERP system to record data for accounting. The audit committee reviews audit reports submitted by the internal auditors. employee engagement.703.703. procurement. their views on the adequacy of internal control systems in the Company and keeps the board of directors informed of its major observations periodically. complying with applicable statutes. estimates and others may constitute ‘forward looking statements’ within the meaning of applicable laws and regulations. which is reviewed each year in consultation with the statutory auditors (M/s. Suggestions for improvement are considered and the audit committee follows up on corrective action. including dividend tax Interest paid Net cash used in financing activities (1.879. natural calamities over which the Company does not have any direct control. insurance.42) (16. The audit committee also meets the Company’s statutory auditors to ascertain. The Company has a well defined delegation of power with authority limits for approving revenue as well as expenditure. CAUTIONARY STATEMENT Certain statements made in the management discussion and analysis report relating to the Company’s objectives. the details of which have been provided in the corporate governance report.897.02 (5.80) (3.81) (26. the conduct of internal audit is oriented towards the review of internal controls and risks in Company’s operations such as software delivery.22) The significant item of cash used in financing activities was payment of dividend ` 5. travel. projections. expectations.Annual Report 2012-13 Cash flows from financing activities (` crores) Fiscal 2013 Repayment of long term borrowings Short term borrowings (net) Repayment of inter-corporate deposits Dividend paid. accounting and finance. The Company has an audit committee.16) (5.16) (3. safeguarding assets from unauthorised use. IT processes in the Company.879.655. These have been designed to provide reasonable assurance with regard to recording and providing reliable financial and operational information. including most of the subsidiaries and foreign branches. outlook. executing transactions with proper authorisation and ensuring compliance of corporate policies. (5. government regulations and taxation. Several factors could make significant difference to the Company’s operations. These include climatic and economic conditions affecting demand and supply.81crores in fiscal 2012). In line with international practice.25) continued its efforts to align all its processes and controls with global best practices.

Corporate Governance Report .

unity and understanding. Both these codes are available on the Company’s website. The names and categories of the Directors on the Board. vendors. ten (i. investors and the society at large. The composition of the Board is in conformity with Clause 49 of the Listing Agreements entered into with the Stock Exchanges. 2013 have been made by the Directors. Section 25 companies and of companies incorporated outside India. The Company has in place an Information Security Policy that ensures proper utilisation of IT resources. ethical corporate behaviour and fairness to all stakeholders comprising regulators. Company’s philosophy on corporate governance Effective corporate governance practices constitute the strong foundations on which successful commercial enterprises are built to last.Annual Report 2012-13 Corporate Governance Report for the year 2012-13 I. while upholding the core values of excellence. responsibility. Necessary disclosures regarding committee positions in other public companies as on March 31.91%) are Non-Executive Directors and six (i. Chairmanships/Memberships of Board committees include only Audit and Shareholders/Investors Grievance Committees. The Company is in compliance with the requirements stipulated under Clause 49 of the Listing Agreements entered into with the Stock Exchanges with regard to corporate governance. the Tata Code of Conduct for Prevention of Insider Trading and the Code of Corporate Disclosure Practices. In addition. II.e. the Company has eleven Directors with a Non-Executive Chairman and a Non-Executive Vice Chairman. directorships of private limited companies. the Company has adopted a Code of Conduct for its Non-Executive Directors. their attendance at Board meetings held during the year and the number of Directorships and Committee Chairmanships/Memberships held by them in other public companies as on March 31. 90. Other directorships do not include alternate directorships. The Company has adopted a Code of Conduct for its employees including the Managing Director and the Executive Directors. The Company has a strong legacy of fair. Of the eleven Directors. 2013. 65 Corporate Governance Report . The Company continues to focus its resources. 54. The Company believes in adopting the ‘best practices’ that are followed in the area of corporate governance across various geographies. which are fundamental to the Tata companies. ii. The Company’s corporate governance philosophy has been further strengthened through the Tata Business Excellence Model. Board of Directors i. The Company’s philosophy on corporate governance oversees business strategies and ensures fiscal accountability.55%) are Independent Directors. iii. 2013 are given herein below. integrity. None of the Directors on the Board is Member of more than ten committees or Chairman of more than five committees across all the public companies in which he is a Director. Strong leadership and effective corporate governance practices have been the Company’s hallmark and it has inherited these from the Tata culture and ethos. transparent and ethical governance practices.e. As on March 31. customers. employees. strengths and strategies to achieve its vision of becoming a truly global leader in software services. None of the Non-Executive Directors is responsible for day-to-day affairs of the Company.

Ishaat Hussain DIN 00027891 Mr. Executive 5@ 7@@ 5 7 Yes Yes 9 - - 1 7 7 Yes 7 6 1 6 7 7 Yes 2 1 - 1 Independent. Non-Executive Independent. Bhatt***** DIN 00548091 * ** *** **** ***** @ @@ Non-Independent. Appointed as the Director w. S. Ramadorai (Vice-Chairman) DIN 00000002 Mr. P. 2012 Attended Chairman Member Chairman Member Mr.f. Chandrasekaran (Chief Executive Officer and Managing Director) DIN 00121863 Mr.Name of the Director Category Number of Board meetings during the year 2012-13 Held Whether Number of Number of attended Directorships in other committee positions last AGM public companies held in other public held on companies June 29. Non-Executive Independent.e. 2013. 2012. Ron Sommer DIN 00621387 Mrs. V. R. Cyrus Mistry (Chairman)** DIN 00010178 Mr.e. Non-Executive Non-Independent. Details provided till the date of retirement/cessation. O. Thyagarajan DIN 00017541 Prof. Clayton M.f. N. Tata* DIN 00000001 Mr. April 2. Corporate Governance Report 66 .e.e. Non-Executive Non-Independent. Retired as the Chief Financial Officer and Executive Director of the Company w. Details provided from the date of appointment.f. N. December 28. Laura M. February 10.f. Aman Mehta DIN 00009364 Mr. June 29. S. Non-Executive Non-Independent. Ceased to be the Director of the Company w. Mahalingam**** DIN 00121727 Dr.f.e. Vijay Kelkar DIN 00011991 Mr. Phiroz Vandrevala DIN 01778976 Mr. Non-Executive 7 7 7 7 7 1 Yes Yes No - 5 1 - 2 - 3 1 - 7 1@ 6@ 7 7 7 7@@ 7 6 6 7 7 7 No No Yes Yes Yes Yes Yes 1 2 - 1 6 12 2 2 1 4 1 2 5 1 3 Retired as the Director and Chairman of the Company w. Christensen DIN 00020111 Dr. 2012 and Chairman of the Company w. Non-Executive Independent. Non-Executive Non-Independent. Video/tele-conferencing facilities are also used to facilitate Directors travelling abroad or at other locations to participate in the meetings. 2012. Non-Executive Independent. Non-Executive Non-Independent. April 2. Non-Executive Independent. 2012. 2012. Executive Independent. Non-Executive Non-Independent. December 28.e. Cha*** DIN 00909210 Mr. Appointed as the Director w.f.

III. The terms of reference of the Audit Committee are broadly as under: s /VERVIEWOFTHE#OMPANYSlNANCIALREPORTINGPROCESSANDTHEDISCLOSUREOFITSlNANCIAL information to ensure that the financial statements reflect a true and fair position and that sufficient and credible information is disclosed. September 4. 2012. 2013 and March 12. December 10. The Audit Committee of the Company is constituted in line with the provisions of Clause 49 of the Listing Agreements entered into with the Stock Exchanges read with Section 292A of the Companies Act. 2012. vi. v. Seven Board meetings were held during the year and the gap between two meetings did not exceed four months. 1956 (“Act”). 2012. The dates on which the said meetings were held are as follows: April 23. October 19. The necessary quorum was present for all the meetings. None of the Non-Executive Directors have any material pecuniary relationship or transactions with the Company. information as mentioned in Annexure 1A to Clause 49 of the Listing Agreements has been placed before the Board for its consideration. 2012. Audit Committee i. July 12.Annual Report 2012-13 iv. 2ECOMMENDINGTHEAPPOINTMENTANDREMOVALOFEXTERNALAUDITORS. During the year 2012-13. January 14. 2012. 2013.

lXATIONOFAUDITFEEAND also approval for payment for any other services. $ISCUSSIONWITHTHEEXTERNALAUDITORSBEFORETHEAUDITCOMMENCES.

2EVIEWINGTHElNANCIALSTATEMENTSANDDRAFTAUDITREPORT.OFTHENATUREANDSCOPEOF audit as well as post-audit discussion to ascertain any area of concern.

the going concern assumption. significant adjustments arising out of audit. major accounting entries based on exercise of judgment by management.INCLUDINGTHEQUARTERLYHALF YEARLY financial information. focusing primarily on: Committees of the Board A. any related party transactions as per Accounting Standard 18. s s s s ¾ ¾ ¾ ¾ ¾ ¾ ¾ ¾ s s s s any changes in accounting policies and practices. compliance with stock exchange and legal requirements concerning financial statements. compliance with accounting standards. 2EVIEWINGWITHTHEMANAGEMENTTHEANNUALlNANCIALSTATEMENTSBEFORESUBMISSIONTOTHE Board. 2EVIEWINGTHE#OMPANYSlNANCIALANDRISKMANAGEMENTPOLICIES $ISCLOSUREOFCONTINGENTLIABILITIES 2EVIEWINGWITHTHEMANAGEMENT. ii. qualifications in draft audit report.

EXTERNALANDINTERNALAUDITORS.

2EVIEWINGTHEADEQUACYOFINTERNALAUDITFUNCTION.THEADEQUACYOFINTERNAL control systems.

INCLUDINGTHEAUDITCHARTER.

reporting structure. approval of the audit plan and its execution. $ISCUSSIONWITHINTERNALAUDITORSOFANYSIGNIlCANTlNDINGSANDFOLLOW UPTHEREON 2EVIEWINGTHElNDINGSOFANYINTERNALINVESTIGATIONSBYTHEINTERNALAUDITORSINTOMATTERSWHERE there is suspected fraud or irregularity or a failure of internal control systems of a material nature and reporting the matter to the Board. s s 67 Corporate Governance Report . coverage and frequency of internal audit.THESTRUCTURE of the internal audit department. staffing and seniority of the official heading the department.

OOKINGINTOTHEREASONSFORSUBSTANTIALDEFAULTSINPAYMENTSTOTHEDEPOSITORS. iii. s s .

DEBENTUREHOLDERS.

Aman Mehta. Bhatt* * @ iv. Ishaat Hussain Mr. Details provided from the date of appointment. 2012. The previous Annual General Meeting (AGM) of the Company was held on June 29. P. The composition of the Audit Committee and the details of meetings attended by its members are given below: Name Category Number of meetings during the year 2012-13 Held Mr. Non-Executive 7 7 7 7 7 6 @ Appointed as a Member of the Committee w. January 14. The broad terms of reference of the Remuneration Committee are as under: s s s s 4OAPPROVETHEANNUALREMUNERATIONPLANOFTHE#OMPANY 4OAPPROVETHEREMUNERATIONANDCOMMISSIONINCENTIVEPAYABLETOTHE-ANAGING$IRECTORFOR each financial year. 2013 and March 11. representatives of the statutory auditors and representatives of the internal auditors to be present at its meetings. The Company has a Remuneration Committee of Directors. April 23. 2012. Non-Executive Independent. Corporate Governance Report 68 . 2013. vi. Thyagarajan Dr. 2012. v.f. 2012. The necessary quorum was present for all the meetings. 4OAPPROVETHEREMUNERATIONANDANNUALPERFORMANCEBONUSPAYABLETOTHE#HIEF&INANCIAL Officer and the Executive Vice Presidents of the Company for each financial year. 2012 and was attended by Mr. shareholders (in case of non-payment of declared dividends) and creditors. Non-Executive Independent. Ron Sommer Dr. Non-Executive Independent. ii. The Company Secretary acts as the Secretary to the Audit Committee.e. as it considers appropriate (particularly the head of the finance function). 3UCHOTHERMATTERSASTHE"OARDMAYFROMTIMETOTIMEREQUESTTHE2EMUNERATION#OMMITTEE to examine and recommend/approve. July 12. O. V. 2012. Attended 7 7 6 6 7 6 Independent. The dates on which the said meetings were held are as follows: April 23. Seven Audit Committee meetings were held during the year. October 19. 2012. Non-Executive Independent. Aman Mehta (Chairman) Mr. B. Vijay Kelkar Mr. Chairman of the Audit Committee. December 10. Non-Executive Non-Independent. 2EVIEWINGCOMPLIANCESASREGARDSTHE#OMPANYS7HISTLE"LOWER0OLICY The Audit Committee invites such of the executives. September 4. Remuneration Committee i.

benefits. Thyagarajan Mr. Non-Executive Non-Independent. The Members have at the AGM of the Company on June 30. The composition of the Remuneration Committee and the details of meetings attended by its members are given below: Name Category Number of meetings during the year 2012-13 Held Mr. Annual increments are decided by the Remuneration Committee within the salary scale approved by the members and are effective April 1. develop and motivate a high performance workforce. iv. During the year 2012-13. perquisites and allowances (fixed component) and commission (variable component) to its Managing Director and the Executive Directors. V. Non-Executive Independent.f. Remuneration Policy: The Company’s remuneration policy is driven by the success and performance of the individual employee and the Company. Ramadorai Mr. The Remuneration Committee decides on the commission payable to the Managing Director and the Executive Directors out of the profits for the financial year and within the ceilings prescribed under the Act based on the performance of the Company as well as that of the Managing Director and each Executive Director. The Company does not have any Employee Stock Option Scheme.f. The Company also reimburses the out-of-pocket expenses incurred by the Directors for attending the meetings.e. Aman Mehta (Chairman) Mr. December 28.Annual Report 2012-13 iii. Details provided from the date of appointment. 2012. v. the Company endeavours to attract. Tata* Mr. each year. retain. The Company pays remuneration by way of salary. Individual performance pay is determined by business performance and the performance of the individuals measured through the annual appraisal process. One meeting of the Remuneration Committee was held during the year on April 23. 2009 approved of payment of commission to the Non-Executive Directors within the ceiling of 1% of the net profits of the Company as computed under the applicable provisions of the Act. Non-Executive Non-Independent. 2012. Through its compensation programme. vi. benefits and performance based variable pay. 69 Corporate Governance Report . as well as the time spent on operational matters other than at meetings. Cyrus Mistry** * ** @ @@ Attended 1 1 1 1 - Independent. Non-Executive 1 1@ 1 1 1 @@ Retired as the Director and Chairman of the Company w.e. the Company paid sitting fees of ` 10. The said commission is decided each year by the Board of Directors and distributed amongst the Non-Executive Directors based on their attendance and contribution at the Board and certain Committee meetings. 2012. R. Appointed as a Member of the Committee w.000 per meeting to its Non-Executive Directors for attending meetings of the Board and meetings of committees of the Board. Non-Executive Non-Independent. N. S. The Company follows a compensation mix of fixed pay. Details provided till the date of retirement. April 23.

vii.

Details of the Remuneration for the year ended March 31, 2013: a. Non-Executive Directors: (` lakh) Name Mr. R. N. Tata* Mr. Cyrus Mistry** Mr. S. Ramadorai Mr. Aman Mehta Mr. V. Thyagarajan Prof. Clayton M. Christensen Dr. Ron Sommer Mrs. Laura M. Cha*** Dr. Vijay Kelkar Mr. Ishaat Hussain Mr. Phiroz Vandrevala Mr. O. P. Bhatt****
* ** *** ****

Commission 300.00 Nil 250.00 135.00 100.00 75.00 100.00 15.00 80.00 75.00 30.00 80.00

Sitting Fees 0.60 0.70 1.00 1.50 1.70 0.10 1.40 Nil 1.30 1.70 0.70 1.60

Retired as the Director and Chairman of the Company w.e.f. December 28, 2012. Appointed as the Director w.e.f. April 2, 2012 and Chairman of the Company w.e.f. December 28, 2012. Ceased to be the Director of the Company w.e.f. June 29, 2012. Appointed as the Director w.e.f. April 2, 2012.

b.

Managing Director and Executive Director: Name of Director and period of appointment Commission ESPS Salary Benefits (` lakh) (` lakh) Perquisites and Allowances (` lakh) 100.58 168.83 900.00 Nil

Mr. N. Chandrasekaran Chief Executive Officer and Managing Director (w.e.f. October 6, 2009 for a period of 5 years) Mr. S. Mahalingam Chief Financial Officer and Executive Director (re-appointed w.e.f. September 6, 2012 upto February 9, 2013)

58.99

73.11

270.00

Nil

The above figures do not include (a) provisions for encashable leave, gratuity and premium paid for Group Health Insurance as separate actuarial valuation/premium paid are not available for the Managing Director and Executive Directors and (b) retirement benefits of ` 208.91 lakh to the former Executive Director. Services of the Managing Director may be terminated by either party giving the other party six months’ notice or the Company paying six months’ salary in lieu thereof. There is no separate provision for payment of severance fees. viii. Details of equity shares of the Company held by the Directors as on March 31, 2013 are given below: Name Mr. Mr. Mr. Mr. Mr. Cyrus Mistry S. Ramadorai N. Chandrasekaran Phiroz Vandrevala Ishaat Hussain Number of equity shares 41,63,526 1,99,120 88,528 80,000 1,740

The Company has not issued any convertible debentures. Corporate Governance Report 70

Annual Report 2012-13 C. Shareholders/Investors Grievance Committee i. The Company has a Shareholders/Investors Grievance Committee of Directors to look into the redressal of complaints of investors such as transfer or credit of shares, non-receipt of dividend/notices/annual reports, etc. One meeting of the Shareholders/Investors Grievance Committee was held during the year on December 10, 2012. The composition of the Shareholders/Investors Grievance Committee and the details of meetings attended by its members are given below: Name Category Number of meetings during the year 2012-13 Held Mrs. Laura M. Cha* Mr. V. Thyagarajan (Chairman)** Mr. S. Ramadorai Mr. O. P. Bhatt***
* ** ***
@ @@

ii. iii.

Attended 1 1 1

Independent, Non-Executive Independent, Non-Executive Non-Independent, Non-Executive Independent, Non-Executive

-

@

1 1 1
@@

Ceased to be the Director of the Company w.e.f. June 29, 2012. Appointed as Chairman of the Committee w.e.f. September 4, 2012. Appointed as a Member of the Committee w.e.f. September 4, 2012. Details provided till the date of cessation. Details provided from the date of appointment.

iv.

The Company has always valued its customer relationships. This philosophy has been extended to investor relationship and an Investor Relations Department (IRD) was set up in June 2004, prior to the Company’s Initial Public Offer of shares. The IRD focuses on servicing the needs of various stakeholders viz., investors, analysts, brokers and the general public. Name, designation and address of Compliance Officer: Mr. Suprakash Mukhopadhyay Vice President and Company Secretary Tata Consultancy Services Limited 11th Floor, Air India Building Nariman Point Mumbai 400 021 Telephone: 91 22 6778 9285 Fax: 91 22 6630 3672

v.

vi.

Details of investor complaints received and redressed during the year 2012-13 are as follows: Opening balance 1 Received during the year 147 Resolved during the year 146 Closing balance 2*

* These complaints were received during the last week of March 2013 and addressed subsequently. D. Other Committees i. Ethics and Compliance Committee: In terms of the Company’s Code of Conduct for Prevention of Insider Trading and Code of Corporate Disclosure Practices (“Insider Trading Code”), applicable to the Directors, officers and other employees, the Company has an Ethics and Compliance Committee of Directors. The Committee considers matters relating to the Insider Trading Code and also considers matters relating to the Company’s Code of Conduct (“CoC”). 71 Corporate Governance Report

Monthly Reports are sent to the members of the Committee on matters relating to the Insider Trading Code and the CoC. One meeting of the Ethics and Compliance Committee was held during the year on January 14, 2013. The composition of the Ethics and Compliance Committee and details of the meetings attended by its members are given below: Name Category Number of meetings during the year 2012-13 Held Attended 1 1 1 1

Mr. S. Ramadorai Mr. V. Thyagarajan

Non-Independent, Non-Executive Independent, Non-Executive

During the year, Mr. Rajesh Gopinathan, Chief Financial Officer was appointed as the Compliance Officer by the Board in place of Mr. S. Mahalingam. The Compliance Officer ensures compliance and effective implementation of the Insider Trading Code. ii. Bank Account Committee: The Company, as on March 31, 2013, has a Bank Account Committee of Directors comprising Mr. Aman Mehta (Independent, Non-Executive) and Mr. N. Chandrasekaran (Non-Independent, Executive). The Bank Account Committee is responsible for approval of opening and closing of bank accounts of the Company and to authorise persons to operate the bank accounts of the Company. iii. Nominations Committee: The Company, as on March 31, 2013, has a Nominations Committee of Directors comprising Mr. V. Thyagarajan (Independent, Non-Executive) as the Chairman, Mr. Cyrus Mistry (Non-Independent, Non-Executive) and Prof. Clayton M. Christensen (Independent, Non-Executive). The Nominations Committee is responsible for making recommendations regarding the composition of the Board and in this regard shall identify Independent Directors to be inducted to the Board and take steps to refresh the composition of the Board from time to time. iv. Executive Committee: The Company, as on March 31, 2013, has an Executive Committee of Directors comprising Mr. Cyrus Mistry (Non-Independent, Non-Executive) as the Chairman, Mr. S. Ramadorai (Non-Independent, Non-Executive), Prof. Clayton M. Christensen (Independent, Non-Executive), Dr. Ron Sommer (Independent, Non-Executive) and Mr. N. Chandrasekaran (Non-Independent, Executive). The Executive Committee’s role covers a detailed review of the following matters before these are presented to the Board: s s s s s s "USINESSANDSTRATEGYREVIEW ,ONG TERMlNANCIALPROJECTIONSANDCASHmOWS #APITALANDREVENUEBUDGETSANDCAPITALEXPENDITUREPROGRAMMES !CQUISITIONS

of registration/ renewal of registration/de-registration of various offices of the Company under the STPI/SEZ schemes and such other schemes as may be deemed fit by them. as on March 31. and also approve of other STPI/SEZ/other scheme(s) related matters. V. Non-Executive) and Mr. v. 2013. Corporate Governance Report 72 . Thyagarajan (Independent. Executive). from time to time. Chandrasekaran (Non-Independent. The STPI/SEZ Committee is responsible for approval. Software Technology Parks of India (STPI)/Special Economic Zone (SEZ) Committee: The Company. N.DIVESTMENTSANDBUSINESSRESTRUCTURINGPROPOSALS 3ENIORMANAGEMENTSUCCESSIONPLANNING !NYOTHERITEMASMAYBEDECIDEDBYTHE"OARD The above matters were discussed in various Board meetings held during the year with the presence of the Executive Committee members with an intent to avail expertise of all the Board members. has a STPI/SEZ Committee of Directors comprising Mr.

Executive IV. Bhatt** * ** @ @@ Attended 2 2 2 Non-Independent. Time Venue Birla Matushri Sabhagar. Date July 2. Executive 2 2 2@@ Retired as the Chief Financial Officer and Executive Director w. Non-Executive Mr. Chandrasekaran Non-Independent. February 10.f. 2012.Annual Report 2012-13 vi. Appointed as a Member of the Committee w. 2012. New Marine Lines. 2012 3. Risk Management Committee: The Risk Management Committee is responsible for advising the Company on foreign exchange matters and framing the broad guidelines for investment of surplus funds of the Company. Safety and Sustainability activities of the Company. Non-Executive (Chairman) Dr. O. Vijay Kelkar Independent. Non-Executive Non-Independent. Details provided from the date of appointment. review the policies. P. Ron Sommer Independent.30 p. N. S.f. Executive Independent. Safety and Sustainability Committee was held during the year on December 10. Non-Executive 2 2 2 2 @ Mr. The composition of the Health. Safety and Sustainability Committee of Directors is responsible for framing and implementation of broad guidelines/policies with regard to the Health. Safety and Sustainability Committee and details of the meetings attended by its members are given below: Name Category Number of meetings during the year 2012-13 Held Attended 1 1 1 1 1 1 Dr.e. Sir Vithaldas Thackersey Marg.m.e. Mahalingam* Mr. 2010 July 1. 2012. Chandrasekaran Non-Independent. General Body Meetings i. Annual General Meeting: Financial year 2009-10 2010-11 2011-12 b. 19. Safety and Sustainability Committee: The Health. Health. 2012 and September 4. Details provided till the date of retirement. Non-Executive Non-Independent. 2013. General Meeting: a. 2011 June 29. Ramadorai Mr. One meeting of the Health. vii. Two meetings of the Risk Management Committee were held during the year on August 29. Mumbai 400 020 Extraordinary General Meeting: No Extraordinary General Meeting of the Members was held during the year 2012-13. The composition of the Risk Management Committee and details of the meetings attended by its members are given below: Name Category Number of meetings during the year 2012-13 Held Mr. S. July 12. Ishaat Hussain Mr. 73 Corporate Governance Report . N. processes and systems periodically and recommend measures for improvements from time to time.

(c) D iv.ii. 2011-12 and 2012-13 respectively: NIL The Company has fulfilled the following non-mandatory requirements as prescribed in Annexure I D to the Clause 49 of the Listing Agreements entered into with the Stock Exchanges: (a) (b) The Company has set up a Remuneration Committee. Details of non-compliance by the Company. A message from the CEO and Managing Director on the half-yearly financial performance of the Company including a summary of the significant events in the six month period ended September 30. The minutes of the board meetings along with a report on significant developments of the unlisted subsidiary companies are periodically placed before the Board of Directors of the Company. Subsidiary companies The Audit Committee reviews the consolidated financial statements of the Company and the investments made by its unlisted subsidiary companies. Reconciliation of Share Capital Audit: A qualified practicing Company Secretary carried out a Share Capital Audit to reconcile the total admitted equity share capital with the National Securities Depository Limited (NSDL) and the Central Depository Services (India) Limited (CDSL) and the total issued and listed equity share capital. Means of communication The quarterly. Hindustan Times and Sandesh. ii. No person has been denied access to the Audit Committee.tcs. penalties. strictures imposed on the Company by the Stock Exchanges or the Securities and Exchange Board of India or any statutory authority. VI. details of which have been given earlier in this Report. on any matter related to capital markets. The audit report confirms that the total issued/paid-up capital is in agreement with the total number of shares in physical form and the total number of dematerialised shares held with NSDL and CDSL. A Management Discussion and Analysis Report is a part of the Company’s Annual Report. Business Standard. 2010. iii. half-yearly and annual results of the Company are published in leading newspapers in India which include The Indian Express. Press Releases made by the Company from time to time are also displayed on the Company’s website. The resolution was passed with the requisite majority. Financial Express. Disclosures i. VII. during the last three years 2010-11. Presentations made to the institutional investors and analysts after the declaration of the quarterly. Special Resolutions: At the AGM of the Company held on July 2. The statutory financial statements of the Company are unqualified. V. The Hindu Business Line.com”. Deccan Chronicle. There are no materially significant related party transactions of the Company which have potential conflict with the interests of the Company at large. iii. a Special Resolution was passed for alteration of the Articles of Association of the Company revising the limit for maximum number of Directors in the Company to fifteen. The results are also displayed on the Company’s website “www. 4HE#OMPANYHASADOPTEDA7HISTLE"LOWER0OLICYANDHASESTABLISHEDTHENECESSARYMECHANISMFOR employees to report concerns about unethical behaviour. Postal Ballot: No Postal Ballot was conducted during the year 2012-13. A list of Frequently Asked Questions (FAQs) giving details about the Company and its shares is uploaded on the Company’s website under ‘Investor FAQs’ section. half-yearly and annual results are also displayed on the Company’s website. 2012 was sent to every Member in October 2012. Lok Satta. Corporate Governance Report 74 .

Annual Report 2012-13 VIII. General shareholder information i. Annual General Meeting: Date Time Venue : : : June 28, 2013 3.30 p.m. Birla Matushri Sabhagar 19, Sir Vithaldas Thackersey Marg New Marine Lines, Mumbai 400 020

As required under Clause 49(IV)(G)(i) of the Listing Agreements entered into with the Stock Exchanges, particulars of Directors seeking appointment/re-appointment at the forthcoming AGM are given in the Annexure to the Notice of the AGM to be held on June 28, 2013. ii. Financial Calendar: Year ending AGM in Dividend Payment iii. iv. Date of Book Closure/Record Date Listing on Stock Exchanges : : : : : March 31 June The final dividend, if declared, shall be paid/credited on July 5, 2013. As mentioned in the Notice of the AGM to be held on June 28, 2013. National Stock Exchange of India Limited (NSE) Exchange Plaza, C-1, Block G Bandra Kurla Complex Bandra (East), Mumbai 400 051 BSE Limited (BSE) 25th Floor, P. J. Towers, Dalal Street Mumbai 400 001 TCS 532540

:

v.

Stock Codes/Symbol: NSE BSE Listing Fees as applicable have been paid. : :

vi. vii.

Corporate Identification Number (CIN) of the Company Dividend Policy:

:

L22210MH1995PLC084781

Dividends, other than interim dividend(s), are to be declared at the AGM of shareholders based on the recommendation of the Board of Directors. Generally, the factors that may be considered by the Board of Directors before making any recommendations for dividend include, without limitation, the Company’s future expansion plans and capital requirements, profits earned during the fiscal year, cost of raising funds from alternate sources, liquidity position, applicable taxes including tax on dividend, as well as exemptions under tax laws available to various categories of investors from time to time and general market conditions. The Board of Directors may also from time to time pay interim dividend(s) to shareholders.

75

Corporate Governance Report

viii.

Market Price Data: High, Low (based on daily closing prices) and number of equity shares traded during each month in the year 2012-13 on NSE and BSE: NSE Month High (`) 1,246.60 1,279.50 1,277.45 1,261.70 1,367.15 1,417.70 1,322.65 1,334.50 1,316.80 1,362.00 1,517.00 1,589.90 Low (`) 1,064.25 1,200.70 1,213.25 1,185.90 1,224.65 1,271.55 1,283.15 1,262.35 1,205.50 1,258.40 1,348.10 1,501.85 Total number of equity shares traded 3,87,59,527 3,56,11,023 2,00,58,443 3,19,68,582 1,77,08,401 3,02,13,322 1,89,69,318 1,39,03,837 2,57,22,864 3,64,03,975 2,66,39,765 2,67,19,336 High (`) 1,244.90 1,280.35 1,277.55 1,261.40 1,365.05 1,415.40 1,321.65 1,334.25 1,314.85 1,362.25 1,514.75 1,590.45 Low (`) 1,059.25 1,200.35 1,213.25 1,186.60 1,227.60 1,269.30 1,281.45 1,261.50 1,205.85 1,258.55 1,346.40 1,499.55 BSE Total number of equity shares traded 45,29,463 39,92,227 23,25,029 60,50,386 19,30,023 24,14,184 19,15,665 11,38,805 23,64,528 31,23,421 29,78,109 18,76,234

April 2012 May 2012 June 2012 July 2012 August 2012 September 2012 October 2012 November 2012 December 2012 January 2013 February 2013 March 2013 ix.

Performance of the share price of the Company in comparison to the BSE Sensex:

TCS share price and BSE Sensex movement

TCS share price

BSE Sensex

Corporate Governance Report

76

Annual Report 2012-13 x. Registrars and Transfer Agents: .AMEAND!DDRESS  432$!2!3(!70RIVATE,IMITED432$0, 6-10, Haji Moosa Patrawala Industrial Estate 20, Dr. E. Moses Road, Mahalaxmi Mumbai 400 011 : : : 91 22 6656 8484 91 22 6656 8494 csg-unit@tsrdarashaw.com

Telephone Fax E-mail xi. 7EBSITE Places for acceptance of documents: $OCUMENTSWILLBEACCEPTEDAT 

WWWTSRDARASHAWCOM 

432$!2!3(!70RIVATE,IMITED 6-10, Haji Moosa Patrawala Industrial Estate 20, Dr. E. Moses Road, Mahalaxmi Mumbai 400 011 : 10.00 a.m. to 3.30 p.m. (Monday to Friday except bank holidays)

Time

For the convenience of the shareholders based in the following cities, transfer documents and letters will also be accepted at the following branches/agencies of TSRDPL: a. s Branches of TSRDPL: 432$!2!3(!70RIVATE,IMITED 503, Barton Centre, 5th Floor 84, Mahatma Gandhi Road Bangalore 560 001 Telephone: 91 80 2532 0321 Fax: 91 80 2558 0019 E-mail: tsrdlbang@tsrdarashaw.com 432$!2!3(!70RIVATE,IMITED Tata Centre, 1st Floor 43, J. L. Nehru Road Kolkata 700 071 Telephone: 91 33 2288 3087 Fax: 91 33 2288 3062 E-mail: tsrdlcal@tsrdarashaw.com Agent of TSRDPL: Shah Consultancy Services Limited 3, Sumatinath Complex, 2nd Dhal Pritam Nagar, Ellisbridge Ahmedabad 380 006 Telefax: 91 79 2657 6038 E-mail: shahconsultancy8154@gmail.com s 432$!2!3(!70RIVATE,IMITED ’E’ Road, Northern Town, Bistupur, Jamshedpur 831 001 Telephone: 91 657 2426616 Fax: 91 657 2426937 E-mail: tsrdljsr@tsrdarashaw.com 432$!2!3(!70RIVATE,IMITED 2/42, Ansari Road, 1st Floor Daryaganj, Sant Vihar New Delhi 110 002 Telephone: 91 11 2327 1805 Fax: 91 11 2327 1802 E-mail: tsrdldel@tsrdarashaw.com

s

s

b.

xii.

Share transfer system: 99.97% of the equity shares of the Company are in electronic form. Transfer of these shares is done through the depositories with no involvement of the Company. As regards transfer of shares held in physical form the transfer documents can be lodged with TSRDPL at any of the above mentioned addresses. Transfer of shares in physical form is normally processed within ten to twelve days from the date of receipt, if the documents are complete in all respects. The Company Secretary, under the authority of the Board, approves transfers, which are noted at subsequent board meetings.

77

Corporate Governance Report

27. Categories of equity shareholders as on March 31.5000 5001 .11.00.58.98.80.177 6. Financial Institutions.70.19 0.00 Number of accounts 5.973 42.51.30000 30001 .84.012 8. Shareholding as on March 31.996 Percentage of holding 73. 2013: a.62 1.818 2.465 Percentage to total accounts 98.01 0.75 0.992 73.422 47.40000 40001 .24.903 1.00 b.00.08 100.313 1.90.03 0.86.72.17 0.759 33.00.33 0.393 1.02 16.1000 1001 . 2013: Category Promoters Other Entities of the Promoters Group Insurance Companies Indian Public and others Mutual Fund and UTI Corporate Bodies Banks.97.00 Corporate Governance Report 78  .495 1.98.94.44.72.705 31.895 33. Distribution of equity shareholding as on March 31.996 Percentage to capital 2.768 4.017 1.50000 50001 .03 0.38 0.22 0.03 0.10000 10001 .78.39 3.18 0.06 0.16.95.36. 2013: Number of shares 1 .02 0.10 0.98 1.24 0.56.70 95.34.32 100.00.14 0.321 37.69.100000 100001 .92.00.20. State and Central Government Foreign Institutional Investors NRI’s/OCBs/Foreign Nationals GRAND TOTAL Number of equity shares held 1.65 0.55.10 100.20.435 19.354 612 328 152 97 75 191 479 6.21 4.74. xiii.073 7.78.95.20000 20001 .60.05 0.above GRAND TOTAL Holding 4.698 40.

Dematerialisation of shares and liquidity: The Company’s shares are compulsorily traded in dematerialised form and are available for trading on both the depositories in India viz.50 0. Distribution and category of redeemable preference shareholder as on March 31.Annual Report 2012-13 c. 2013.57 0.107 Percentage of holding 73. the International Securities Identification Number (ISIN) allotted to the Company’s shares is INE467B01029.51.72.ATIONAL7ESTMINSTER"ANK0LCAS$EPOSITARYOF&IRST State Asia Pacific Leaders Fund a Sub Fund of First State Investments ICVC Abu Dhabi Investment Authority .34. /UTSTANDING'$2S!$2S7ARRANTSORANYCONVERTIBLEINSTRUMENTS. d. 2013: Tata Sons Limited. a series of Vanguard International Equity Index Fund Lazard Asset Management LLC A/C Lazard Emerging Markets Portfolio Government of Singapore .01. holds 100% of the 100.05.196 63.50.519 0.00. Under the Depository System. Equity shares of the Company representing 99.398 79.32 1 2 3 4 5 6 7 8 9 10 xiv.386 3. the holding company.16. Name of the shareholder Number of equity shares held 1.000 redeemable preference shares of the Company.75 2.Gulab 60.000 1.41 0.97% of the Company’s equity share capital are dematerialised as on March 31.741 1. NSDL and CDSL.32 0. no.28.042 97.76 0. Tata Sons Limited Life Insurance Corporation of India Franklin Templeton Investment Funds Aberdeen Global Indian Equity Fund Mauritius Limited Oppenheimer Developing Markets Fund Vanguard Emerging Markets Stock Index Fund.00.44.99.48.45. The Company’s equity shares are regularly traded on NSE and BSE. in dematerialised form.00. Top ten equity shareholders of the Company as on March 31.58 1.31 XV xvi.14. 2013: Sr.83.61 0.308 62.10.698 5.

CONVERSIONDATEANDLIKELYIMPACTON equity: 4HE#OMPANYHASNOTISSUEDANY'$2S!$2S7ARRANTSORANYCONVERTIBLEINSTRUMENTSINTHEPASTAND HENCEASON-ARCH.

.

740 96 96 7. 2013 shall remain frozen till the rightful owner of such shares claims the shares.644 The voting rights on the shares outstanding in the suspense account as on March 31. Equity shares in the suspense account: In accordance with the requirement of Clause 5A(I) of the Listing Agreements entered into with the Stock Exchanges. 2012 Shareholders who approached the Company for transfer of shares from suspense account during the year Shareholders to whom shares were transferred from the suspense account during the year Aggregate number of shareholders and the outstanding shares in the suspense account lying as on March 31. 79 Corporate Governance Report . 2013 Number of shareholders 190 2 2 188 Number of equity shares 7.THE#OMPANYDOESNOTHAVEANYOUTSTANDING'$2S!$2S7ARRANTSORANY convertible instruments. the Company reports the following details in respect of equity shares lying in the suspense account which were issued in dematerialised form pursuant to the public issue of the Company: Particulars Aggregate number of shareholders and the outstanding shares in the suspense account lying as on April 1.

if any. all unclaimed/ unpaid dividend. application money. 2013 January 14. 2006 July 18. providing them details of the unencashed warrants and requesting them to comply with the procedure for seeking payment of the same. Tivim Industrial Estate. 2006 January 15. as applicable. It may be noted that the unclaimed Final Dividend for the financial year 2005-06 declared on June 29. Plant location: In view of the nature of the Company’s business viz. No claim shall lie against the IEPF or the Company for the amounts so transferred nor shall any payment be made in respect of such claim. 2007 Last date for claiming unpaid dividend June 28. Goa. Transfer of unclaimed/unpaid amounts to Investor Education and Protection Fund (IEPF): Pursuant to Sections 205A and 205C and other applicable provisions. 2013 July 17. 2013 October 15. xix. Information Technology (IT) Services and IT Enabled Services. Members who have not yet encashed their dividend warrant(s) pertaining to the Final Dividend for the financial year 2005-06 and onwards are requested to make their claims without any delay to TSRDPL. 2006 October 16. Members may please note that all unclaimed/unpaid amounts pertaining to TIL have been transferred to IEPF. of the Act. 2014 xviii.relations@tcs. which has merged with the Company. Karaswada. Mapusa–Bardez. in relation to the Company and erstwhile Tata Infotech Limited (TIL). Address for correspondence: Tata Consultancy Services Limited 9th Floor. The following table gives information relating to outstanding dividend accounts and the dates by which they can be claimed by the shareholders in the financial year 2013-14: Financial year 2005-06 2006-07 Date of declaration June 29. A separate communication has been sent in January 2013 to the shareholders of TCS who have not encashed their dividend warrants and which are not yet transferred to IEPF. have been transferred to the IEPF established by the Central Government.xvii. remaining unclaimed/unpaid for a period of seven years from the date they became due for payment. 2006 can be claimed by the shareholders by June 28. The Company has a manufacturing facility at 17-B. debenture interest and interest on deposits as well as the principal amount of debentures and deposits. Nirmal Building Nariman Point Mumbai 400 021 Telephone: 91 22 6778 9356 / 91 22 6778 9595 Fax: 91 22 6630 3672 Designated e-mail address for Investor Services: investor. the Company operates from various offices in India and abroad. 2013.com 7EBSITEWWWTCSCOM Corporate Governance Report 80 .

Our examination was limited to a review of the procedures and implementation thereof. April 17. RAMESH Partner (Membership No. 2013 81 Corporate Governance Report . the Company has adopted a Code of Conduct for its Non-Executive Directors. 2013. The compliance of conditions of Corporate Governance is the responsibility of the management. adopted by the Company for ensuring the compliance of the conditions of Corporate Governance. employees in the Executive Vice President cadre and the Company Secretary as on March 31. It is neither an audit nor an expression of opinion on the financial statements of the Company. 2013. 7ESTATETHATSUCHCOMPLIANCEISNEITHERANASSURANCEASTOTHEFUTUREVIABILITYOFTHE#OMPANYNOROFTHEEFlCIENCY or effectiveness with which the management has conducted the affairs of the Company.O7 P. as stipulated in Clause 49 of the Listing Agreements of the Company entered into with the Stock Exchanges. I confirm that the Company has in respect of the year ended March 31. Chandrasekaran Chief Executive Officer and Managing Director Mumbai. Both these Codes are available on the Company’s website. 2013. Senior Management Team means the Chief Financial Officer. N. received from the Senior Management Team of the Company and the Members of the Board a declaration of compliance with the Code of Conduct as applicable to them. 70928) Mumbai. R. For DELOITTE HASKINS & SELLS Chartered Accountants 2EGISTRATION. In addition. For the purpose of this declaration.Annual Report 2012-13 DECLARATION REGARDING COMPLIANCE BY BOARD MEMBERS AND SENIOR MANAGEMENT PERSONNEL WITH THE COMPANY’S CODE OF CONDUCT This is to confirm that the Company has adopted a Code of Conduct for its employees including the Managing Director and Executive Directors. 2013 COMPLIANCE CERTIFICATE TO THE MEMBERS OF TATA CONSULTANCY SERVICES LIMITED 7EHAVEEXAMINEDTHECOMPLIANCEOFCONDITIONSOF#ORPORATE'OVERNANCEBYTATA CONSULTANCY SERVICES LIMITED (“the Company”). we certify that the Company has complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing Agreements. for the year ended March 31. May 27. In our opinion and to the best of our information and according to the explanations given to us and the representations made by the Directors and the management.

Business Responsibility Report .

Annual Report 2012-13

Business Responsibility Report
Introduction Tata Consultancy Services (referred to as TCS or the Company) embodies the Tata group’s core value of building a long term sustainable business by way of (a) creating wealth for society, (b) improving the lives of communities and (c) caring for the environment. At TCS, corporate sustainability is demonstrated through (a) responsible governance built on ethical practices, transparency and accountability, (b) engagement with all stakeholders including those who are disadvantaged and marginalised, (c) respecting human rights, (d) providing value to customers, (e) respecting and protecting the environment and (f) ensuring the well-being of all our employees around the globe. TCS operates in a large number of locations across the globe. Therefore, the implementation of sustainability programmes and initiatives of the Company spans across a number of countries and locations, incorporating the specific needs of each location. These initiatives have been growing over time and the Company has built robust infrastructure and processes to implement and monitor activities under corporate sustainability. Section A: General Information about the Company 1. 2. 3. 4. 5. 6. 7. Corporate identity number (CIN) of the Company: L22210MH1995PLC084781 Name of the Company: Tata Consultancy Services Limited Registered address: 9th Floor, Nirmal Building, Nariman Point, Mumbai - 400 021 Website: www.tcs.com E-mail id: corporate.sustainability@tcs.com Financial year reported: April 1, 2012 to March 31, 2013 Sector(s) that the Company is engaged in (industrial activity code-wise): ITC CODE PRODUCT DESCRIPTION 85249009 8. Computer software 3. 1. 2. Paid up capital Total turnover a. Revenue from operation b. Other income Total profit after taxes and minority interest 9. Total number of locations where business activity is undertaken by the Company: There are 121 global locations. i. Number of International Locations (Provide details of major 5) Number of International locations: 109 North America LATAM UK & Ireland Europe APAC MEA ii. Number of National Locations: Number of National Locations: 12 10. Markets served by the Company: North America, South America, United Kingdom & Ireland, Europe, Asia Pacific, Middle East & Africa and India Section B: Financial Details of the Company FY13 FY13 Unconsolidated Consolidated ` crores ` crores 295.72 50,656.53 48,426.14 295.72 64,167.71 62,989.48 21 14 25 21 19 9

2,230.39 12,786.34

1,178.23 13,917.31

List three key products/services that the Company manufactures/provides (as in balance sheet): a. Application development and maintenance, b. E n t e r p r i s e s o l u t i o n s i n c l u d i n g b u s i n e s s intelligence and c. Business process outsourcing.

4.

To t a l S p e n d i n g o n C o r p o r a t e S o c i a l Responsibility (CSR) as percentage of profit after tax (%): 0.51%

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5.

List of activities in which expenditure in 4 above has been incurred:Sr. no. 1. 2. 3. 4. Particulars Education Health Environment Affirmative action Total Amount spent in ` crores 17.62 42.42 6.52 5.04 71.60

Section D: BR Information 1. Details of Director/Directors responsible for BR a. Details of the Director/Directors responsible for implementation of the BR policy/policies: Ɣ DIN Number: 00121863 Ɣ Name: Mr. N. Chandrasekaran Ɣ Designation: Chief Executive Officer and Managing Director b. Details of the BR head: Sr. Particulars no. 1. 2. 3. 4. 5. Details

Section C: Other Details 1. 2. Does the Company have any Subsidiary Company/ Companies? Yes Do the Subsidiary Company/Companies participate in the BR Initiatives of the parent company? If yes, then indicate the number of such subsidiary company(s): Yes 23 of our subsidiaries participate in BR activities. 3. Do any other entity/entities (e.g. suppliers, distributors etc.) that the Company does business with, participate in the BR initiatives of the Company? If yes, then indicate the percentage of such entity entities? [Less than 30%, 30-60%, More than 60%]: The Company does not mandate its suppliers/ distributors to participate in the Company’s BR initiatives. However, they are encouraged to participate in the Company’s CSR activities.

DIN number NA (if applicable) Name Designation Telephone number e-mail id Mr. Ajoyendra Mukherjee Executive Vice President & Global Head HR 022 – 67789999 corporate.sustainability@ tcs.com

2.

Principle-wise (as per NVGs) BR Policy/policies (Reply in Y/N): The National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business released by the Ministry of Corporate Affairs has adopted nine areas of Business Responsibility. These briefly are as follows: P1 P2 P3 P4 P5 P6 P7 P8 P9 Business should conduct and govern themselves with ethics, Transparency and Accountability Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle Businesses should promote the wellbeing of all employees Businesses should respect the interests of, and be responsive towards all stakeholders, especially those who are disadvantaged, vulnerable and marginalised Businesses should respect and promote human rights Business should respect, protect, and make efforts to restore the environment Businesses, when engaged in influencing public and regulatory policy, should do so in a responsible manner Businesses should support inclusive growth and equitable development Businesses should engage with and provide value to their customers and consumers in a responsible manner

Business Responsibility Report

83

Annual Report 2012-13 Sr. Questions no. 1. 2. Do you have a policy /policies for.... Has the policy being formulated in consultation with the relevant stakeholders? Does the policy conform to any national / international standards? Has the policy been approved by the Board? Has it been signed by MD/owner/CEO/ appropriate Board Director? 5. Does the company have a specified committee of the Board/ Director/ Official to oversee the implementation of the policy? Indicate the link for the policy to be viewed online? P1 Y Y P2 Y Y P3 Y Y P4 Y Y P5 Y Y P6 Y Y P7 Y Y P8 Y Y P9 Y Y

3.

Y

Y

Y

Y

Y

Y

Y

Y

Y

4.

Y

Y

-

-

Y

-

Y

-

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

Y

6.

http://www.tcs.com/ “MyHR” “Knomax” Same http://www.tcs. View re- as P1 com/about/corp_ SiteCollectionDocuview responsibility/ ments/About%20 restricted stricted to employees environmental/ TCS/TCS_CodeofConto Pages/default. duct_Oct-2008.pdf employaspx ees Y Y Y Y Y Y

Same as P1

“Knomax” Same View reas stricted to P1 employees

7.

Has the policy been formally communicated to all relevant internal and external stakeholders? Does the company have in-house structure to implement the policy/ policies?

Y Y Commu- Communicated to nicated to internal internal stakehold- stakeholders ers Y Y

Y

8.

Y

Y

Y

Y

Y

Y

Y

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Business Responsibility Report

PCMM. which addresses quality assurance practices for all types of projects. Six Sigma. includes review of awareness of the TCoC and the mechanism for redressal of issues identified. Principle 2 Businesses should provide goods and services that are safe and contribute to sustainability throughout their life cycle TCS has evolved its strategy around integrated. ISO 27001 and ISO 14001 aligned with the strategic objectives of the Company.com/cs Additional Information The Tata Code of Conduct (TCoC) is the guide for employees on values. bribery and corruption cover only the company? No Does it extend to the Group/Joint Ventures/ Suppliers/Contractors/NGOs /Others? All companies in TCS group are covered by the policy 2. the code is a comprehensive document for employees of all TATA companies to adhere to. TCS has evolved an ‘Integrated Quality Management System’ (iQMS). TCS is the first organisation in the world to have received the highest level 5 enterprise wide ‘Capability Maturity Model Integrated’ (CMMI) certification. The TCoC has been influenced by the ‘UN Declaration of Human Rights’ and the ‘International Labour Organisation’ (ILO) principles. Created in 1998. 89. CMMI. while conducting business. Governance related to BR Ɣ I n d i c a t e t h e f re q u e n c y w i t h w h i c h t h e B o a rd o f D i re c t o r s . Annually. The corporate sustainability assessment conducted annually. customercentric services of same quality delivered from multiple locations around the world through its ‘Global Network Delivery Model’ (GNDM™). It is also available on the Company’s website www. Business Responsibility Report 85 . Questions no. ISO20000. Does the Company have a grievance redressal mechanism related to the policy/ policies to address stakeholders’ grievances related to the policy/policies? Has the company carried out independent audit/ evaluation of the working of this policy by an internal or external agency? P1 Y P2 Y P3 Y P4 Y P5 Y P6 Y P7 Y P8 Y P9 Y 10. Y Y Y Y Y Y Y Y Y 3.tcs. How many stakeholder complaints have been received in the past financial year and what percentage was satisfactorily resolved by the management? 323 complaints were received during the year 2012-13. Does the policy relating to ethics. Within 3 months. iQMS is an integrated approach for implementing quality practices of world-class quality models like ISO 9000.Sr. Transparency and Accountability 1. More than 1 year: Quarterly Does the Company publish a BR or a Sustainability Report? What is the hyperlink for viewing this report? How frequently it is published? Yes The Company publishes its sustainability report on GRI Framework annually. from various stakeholders. The 200 plus ethics counsellors within the Company are responsible for ensuring its enforcement. C o m m i t t e e of the Board or CEO to assess the BR performance of the Company. It is available on the intranet of TCS as well as on the Company’s webpage. 3-6 months. It is mandatory for each employee to sign the TCoC at the time of joining. Ɣ Section E: Principle-wise performance Principle 1 Business should conduct and govern themselves with Ethics. ethics and business principles. 9.9% of these were satisfactorily resolved. The Company follows rigorous quality management processes to ensure highest quality of output.

a. TCS and Government of Andhra Pradesh. More and more services are being added by the JVs for benefit of citizens. The IT solution helps in registering the job seekers.Not Applicable. counselling.N o t A p p l i c a b l e . b. MP Online & MahaOnline: Under the Government of India’s ‘National e-Governance Plan’ (NeGP). identifying progress of such work.) per unit of product (optional): i. an end-to-end IT solution of the Company has successfully automated the NREGA scheme in Andhra Pradesh. A data center monitors and reviews the scheme on a continuous basis. Reduction during sourcing/production/ distribution achieved since the previous year throughout the value chain? 1. LIC premium. The services availed by citizens through these portals relate to education (admission in institutions. For each such product. payment of municipality and property taxes. This suite of tools helps assess. etc. with minimum assured wage. death. through centralisation of data and generation of MIS reports. and design data centers from an energy efficiency perspective. 1. etc.) and ‘Business to Citizen’ (B2C) services (collection of electricity bills.Not Applicable. These JVs have created online web portals. manage. but three of these are mentioned below. which act as single platform providing citizens services at their doorsteps through channels such as kiosk. This scheme offers one member of the BPL family one hundred days of work a year. provide the following details in respect of resource use (energy. APOnline. etc.). measuring and 86 Business Responsibility Report c. Government of Madhya Pradesh and Government of Maharashtra have formed joint ventures (JV) to drive the initiative in the respective states. ‘Government to Citizen’ (G2C) services (certificates from government in respect of income. addressed area is social concern. telephone bills. addressed area is social concern. N R E G A F r a m e w o r k . land records. 2. These online services have changed the lives of crores of citizens in India and transformed them from “citizens in line” to “citizens on line”. examination. 2. addressed area is social concern. N R E G A F r a m e w o r k . reduce power costs and rationalise cooling infrastructure and minimises the carbon footprint. recruitment in electricity boards and state PSU. (c) reduction in fraud by effectively blocking all possible leakages within the system. 3.N o t A p p l i c a b l e . National Rural Employment Guarantee Act (NREGA) Framework The NREGA framework. List up to 3 of your products or services whose design has incorporated social or environmental concerns. recruitment (application for jobs in government departments. risks and/or opportunities. (d) reduction in effort and administrative costs. ‘Citizen Service Center’ (CSC) or their home personal computers. ii. recharges of DTH and prepaid mobiles. addressed area is social concern. determining the shelf of work. TCS’ IT solution has brought in (a) transparency and visibility to all transactions. which helps optimise the power consumption of data centers. (e) accuracy and speed in payment with biometric authentication and (f) effective programme monitoring. birth. Online companies . Reduction during usage by consumers (energy.Annual Report 2012-13 The assured world class high quality of services ensures that the IT system built by TCS would be safe and sustainable throughout the lifetime of the system anywhere in the world. Power Insight. water. etc. 3.). 2. many of which are well known to the public at large. (b) increased accountability. Online companies . raw material. caste. There are many examples. Power Insight: s 2EDUCTIONRANGING INCOOLING electricity cost at three data centers within TCS where “Power Insight” has been implemented . etc. disbursing wages to bona fide job worker and providing online information for purpose of social audit.Not Applicable. Power InSight: Power InSight is a comprehensive data center power management framework developed by the Company.). water) has been achieved since the previous year? 1.

s 2 E D U C T I O N O F    I N E L E C T R I C I T Y consumption of a data center belonging to a leading multi-national telecommunication company. s 7ASTELUBEOIL.

503BATTERIES.

TCS gives preference to small organisations. D o e s t h e c o m p a n y h a v e p ro c e d u re s i n place for sustainable sourcing (including transportation)? Yes If yes. Principle 3 Businesses should promote the wellbeing of all employees 1. 5-10%. what percentage of your inputs was sourced sustainably? Also. Do you have an employee association that is recognised by management? : Yes Business Responsibility Report 87 5.E WASTEnDISPOSED through government authorised recyclers (100% recycling) s 7ASTEOFFICEPAPER SENTFORRECYCLING recycling) s 0RINTER AND TONER CARTRIDGES SENT BACK TO the manufacturer under product take-back arrangement (100% recycling) s "IO DEGRADABLEGARDENWASTEFOODWASTEn vermi-composting and bio-digestion respectively RECYCLING  Additional Information Internal consumption Sr. Please indicate the total number of employees: Total number of employees including subsidiaries as on March 31. The nature of the Company’s business is such that there are no significant emissions or process wastes. Please indicate the number of permanent employees with disabilities: 546 permanent employees with disabilities 5. Does the company have a mechanism to recycle products and waste? Yes If yes what is the percentage of recycling of products and waste (separately as <5%. Has the company taken any steps to procure g o o d s a n d s e r v i c e s f ro m l o c a l & s m a l l producers. The waste generation is fairly limited and restricted primarily to e-waste. provide details thereof. >10%). PUC requirement for vehicles hired. Fresh water consumption (litre/FTE/month) 3. The adherence to the policy is audited by an internal team not directly involved with execution and action is taken on the deviations. Environmental no. maximising recycling and reuse to achieve the target of <5% waste to landfill. including communities surrounding their place of work? Yes If yes. rope. etc. provide details thereof.76. safety-belt. in about 50 words or so. 4. particularly promoted by entrepreneurs belonging to schedule castes and the schedule tribes. segregation at source. Safety & Environment Policy’ (HSEP). Carbon footprint due to Scope 1 + Scope 2 (tonnes CO2/FTE/annum) 4. Also. reliability and price. Paper consumption (Reams/1000FTE/month) % Change % Change (over (over FY 11-12) FY 07-08) 7% Decrease No change 6% Decrease 15% Decrease 33% Decrease 13% Decrease 34% Decrease 76% Decrease 3. 2013 was 2. .4% of the total global workforce) 4. age of vehicles used. Performance Parameters 1. waste from lead-acid batteries and municipal solid waste. Sustainability in sourcing is enforced through ‘Health.583 are hired on a contractual basis 3. Adherence to local laws for compensation of vendors’ workers is also covered by HSEP. It covers various issues like health of vendors’ workers deployed.) adopted. Please indicate the total number of employees hired on temporary/contractual/casual basis: 7. Our waste management practices seek to reduce the environmental impact by reduction in generation. hygiene norms at vulnerable places like canteen. The vendors have to sign HSEP document and ensure compliance to the policy. safety measures (helmet.698 (31. lube oil waste. discharge from equipments.196 2. what steps have been taken to improve their capacity and capability of local and small vendors? While the criteria for the selection of goods & services are quality. etc. Please indicate the number of permanent women employees: 86. Electricity consumption (kWh/ FTE/month) 2. in about 50 words or so.

These include holiday homes. Ergonomics. involuntary labour.1% 88 Business Responsibility Report . The policy change management framework takes into consideration. competency management. feedback from all relevant stakeholders. Additional Information on employee well being The Company has a number of policies and programmes focussed on employee wellbeing. Employee skill up-gradation: Permanent employees Permanent women employees Employees with disabilities 96. Included above Has the company mapped its internal and external stakeholders? Yes Out of the above. Initiatives such a ‘PEEP’ and ‘Empower’ provide the opportunity to raise concerns with managers and/or business leaders. are counducted to reach out to the associates. floor-walks. regular fire drills. over 2. Digitised platform ‘Career Hub’ enables employees to record their aspirations. Fit4Life. The policies and programmes are implemented through various internal teams. Safety and Environment have been imparted through classroom sessions. forced labour.06% Please indicate the number of complaints relating to child labour. What percentage of your under mentioned employees were given safety & skill up-gradation training in the last year? s 0ERMANENT%MPLOYEES s 0ERMANENT7OMEN%MPLOYEES s #ASUAL4EMPORARY#ONTRACTUAL%MPLOYEES s %MPLOYEESWITH$ISABILITIES Safety: All the categories of employees mentioned above have been covered through our training modules. with HR taking the ownership. several awareness campaigns including Road Safety. gymnasiums in offices. vulnerable & marginalized stakeholders? Yes 7. behaviour based safety. periodic health screening. mentoring and tracking career movement of employees. as on the end of the financial year. ‘Employee Concerns’ is an online tool where a grievance may be raised by an employee which is then addressed by stakeholders within predefined SLAs. Adherence to the Company’s HR policies is audited by the internal auditor of the Company. Training on health and safety is imparted to associates as a part of the induction module combined with an annual refresher web based HSE training.40. induction trainings and web based training. There are several platforms within TCS which seek to empower employees. The tool ‘TCS Gems’ is used for global reward and recognition. Category No of No of complaints complaints filed during pending as the financial on end of the financial year year None 9 None None None None TCS maintains an integrated competency management system encompassing learning.7% 97. health awareness sessions. pharmacy benefits. Substantial investments in infrastructure and tools have been made to keep its workforce motivated and ready for the evolving technology. has the company identified the disadvantaged. Child labour/forced labour/ involuntary labour Sexual harassment Discriminatory employment 8. In FY13. periodic medical check-ups. as well as their progress against the plan. What percentage of your permanent employees is members of this recognised employee association?: 0. helps the Company in identifying high potentials. An effective mode of training has been informal floor-walks and town-hall meetings. Principle 4 Businesses should respect the interests of. vacation for employees who are retiring. sexual harassment in the last financial year and pending. Fire Safety. Additionally. vulnerable and marginalised 1. and be responsive towards all stakeholders. especially those who are disadvantaged.000 man-hours of training on Health. and 24X7 ‘Employee Assistance Programme’ are some of the important initiatives for employee health and safety. 2. TCS provides its employees huge opportunity for learning.Annual Report 2012-13 6. etc. safety for female associates and the health insurance policies. skill assessment and individual development which provides employees and end-to-end view of their learning and competency development needs.

s "0/ EMPLOYABILITY PROGRAMME DETAILS IN Principle 8. Benefits reach the marginalised stakeholders through the following schemes: Empowerment through literacy: TCS Adult Literacy Programme – details in Principle 8. The ‘TATA Group Climate Change Policy’ and TCS’ ‘Environment Policy’ guide the organisation to continually mitigate the impact on climate change and global warming as a result of our operations.details in Principle 8. TCS’ Corporate Sustainability Report – http://www. The details of the targets. please give hyperlink for webpage. TCS has several programmes designed to benefit marginalised stakeholders such as (a) illiterate adults. The commitment to human rights is embedded in the ‘Tata Code of Conduct’.tcs. (c) rural unskilled youth. provide details thereof.tcs. drive green IT (IT enabled energy efficiency in data centers and distributed IT networks). (b) scheduled caste.com/about/corp_responsibility/ Pages/default. adopted by the Company. If yes. and make efforts to restore the environment 1. With respect to vendors. 2. All employees.5 Healthcare & Vocational Training for Tribe s 4#3 CONTRIBUTED ` 1 crore to RK Mission’s Rural Health and Welfare center at Sakwar. global warming. item 1.1 s 3CHOLARSHIPSTHROUGH&OUNDATIONFOR!CADEMIC Excellence and Access (FAEA) . efficient operations and green power purchase. Corporate Sustainability page on TCS website – http://www.com/about/corp_responsibility/ cs-report/Pages/default. Does the company identify and assess potential environmental risks? Yes ISO 14001:2004 has been adopted as the environment management system standard. Does the company have strategies/ initiatives to address global environmental issues such as climate change. We have specific targets to reduce our carbon footprint and we monitor it on an ongoing basis. Yes.? Y/N. benefiting the marginalised Warli tribal community. item 4 s !DVANCED#OMPUTER4RAINING#ENTER!#4# details in Principle 8. vulnerable and marginalized stakeholders? Yes If so. scheduled tribes and other tribal communities. an exhaustive impact assessment is conducted at organisation level as well as site level to identify all environmental impacts from our operations.aspx 3. item 3. with vendors require the vendor to comply with the relevant laws safeguarding labour rights and human rights in their respective jurisdiction. Detailed plan to achieve these targets focus on creating green infrastructure which are designed for better energy efficiency. Maharashtra for healthcare and vocational training. etc. etc. including security personnel. Does the policy related to Principle 6 cover only the company or extends to the Group/ Joint Ventures/Suppliers/Contractors/NGOs/ others. protect. vendors and contractors. As a part of this management system. All the contracts that we enter into Business Responsibility Report 89 . item 1. its subsidiaries and vendors. are sensitized to human rights as part of their orientation programme. in about 50 words or so.aspx b. The Company’s commitment to follow the basic principles of human rights is reflected in the checks and balances within the HR processes. TCS follows a rigorous screening process before entering into a business relationship.3. (d) visually impaired and (e) inmates in jail.1 Promoting Employability 2. TCS’ Environmental Policy is applicable to all the business units/groups and extends to business partners including suppliers. How many stakeholder complaints have been received in the past financial year and what percent was satisfactorily resolved by the management? None Principle 6 Business should respect. Principle 5 Businesses should respect and promote human rights 1. performance and the various initiatives are available at: a. Are there any special initiatives taken by the company to engage with the disadvantaged. Does the policy of the company on human rights cover only the company or extend to the Group/Joint Ventures/Suppliers/Contractors/ NGOs/Others? The policy is applicable to TCS.

e. etc. Are the Emissions/Waste generated by the company within the permissible limits given by CPCB/SPCB for the financial year being reported? Yes All emissions/waste generated at various offices of TCS are within permissible limits. All India Management Association f.tcs. If yes. Inclusive Development Policies. E n e r g y s e c u r i t y. reviewed internally and reported to the CPCB/SPCB as per the requirement.aspx b. safety & sustainability committee of the Board of Directors on a half yearly basis. Confederation of Indian Industries (CII) c. Sustainable Business Principles. Number of show cause/ legal notices received from CPCB/SPCB which are pending (i. External stakeholders can access this policy through the Company’s website.aspx 6. energy efficiency. provide details thereof. These are continuously monitored. not resolved to satisfaction) as on end of Financial Year. Indo-American Chamber of Commerce Have you advocated/lobbied through above associations for the advancement or improvement of public good?: Yes If yes specify the broad areas (drop box: Governance and Administration. operating offices efficiently and driving green IT. 2. Sustainable Business Principles c. Economic Reforms Additional Information TCS uses the Tata Code of Conduct as a guide for its actions in influencing public and regulatory policy.com/about/corp_responsibility/ Pages/default. Governance and Administration b. Inclusive Development Policies (with a focus on skill building and literacy) d.Annual Report 2012-13 4. The overall responsibility of environment management lies with the Company’s CEO & MD and the progress is reviewed by health. 7. No show cause or legal notice received in FY13. Is your company a member of any trade and chamber or association?: Yes If Yes. etc.com/about/corp_responsibility/ cs-report/Pages/default. 3. if Yes. Has the company undertaken any other initiatives on – clean technology. whether any environmental compliance report is filed? Not Applicable 5. TCS’ Corporate Sustainability Report – http://www. This is achieved through creating green building infrastructure. For internal stakeholders.tcs. when engaged in influencing public and regulatory policy. 90 Business Responsibility Report . Wa t e r. Training on this policy is periodically conducted for all associates. The details of these initiatives and more information are available on: a. Yes TCS is committed to drive energy efficiency. Global Reporting Initiative (GRI) e. the policy has been posted on the intranet and at office receptions. Also. please give hyperlink for web page. TCS has enterprise wide certification for integrated health safety & environment management system as per ISO 14001:2004 and BS OHSAS 18001:2007. Some key initiatives include – creating green office campuses designed at par with LEED Gold rating and driving data centre energy efficiency through server virtualisation and optimisation of cooling. Principle 7 Businesses. Name only those major ones that your business deals with: a. Others) TCS has participated in industry body consultations in the following areas: a. Economic Reforms. The National Association of Software and Services Companies (NASSCOM) b. Y/N. renewable energy. F o o d S e c u r i t y. Does the company have any project related to Clean Development Mechanism? If so. in about 50 words or so. Corporate Sustainability page on TCS website – http://www. Federation of Indian Chambers of Commerce and Industry (FICCI) d. Additional Information ‘Environmental Policy’ of the Company has been drafted in line with the ISO 14001:2004 environment management system. should do so in a responsible manner 1.

Urdu. a Computer Based Functional Literacy Programme ALP developed and deployed by the Company is among the first instances of use of IT core competence for social good in India. Health MedMantra Tata Medical Center CSR Tech Team Affirmative Action BPO Employability Programme COPA ITI Training Manuski Hostel Engagement 3.Amount in INR and the details of the projects undertaken? For the financial year 2012-13: ` 71.60 crores Details of Projects Undertaken a. writing. 2 African languages Moore and Northern Sotho and Arabic. we monitor the reach and outcome of our CSR initiatives through monthly reports and assessments conducted by CSR regional and geographic leads. Hindi.Principle 8 Businesses should support inclusive growth and equitable development 1. In fiscal 2013. Does the company have specified programmes/initiatives/projects in pursuit of the policy related to Principle 8? If yes details there of: Yes Summary of initiative/projects undertaken is given below. the product enables an individual to learn reading. Since its inception. the ALP has reached 1. literacy was imparted to 11. What is your company’s direct contribution to community development projects. Gujarati. and solving simple arithmetic problems in 45 to 50 hours.93. Marathi. Are the programmes/projects undertaken through in-house team/own foundation/ external NGO/government structures/any other organisation? Yes. The programme is available in 9 Indian languages. Kannada. through in-house team. 4. By using multimedia. Telegu. Tamil. New Delhi Business Responsibility Report 91 . Bengali. Adult Literacy Programe at the Women’s Jail in Tihar. namely.625 beneficiaries. Education & Skill Building Adult Literacy Programme UDAAN Empower Academic Interface Programme Advanced Computer Training Center goIT Rural IT Quiz IT Wiz TCS Maitree Village development Programme 2. A corporate initiative was undertaken in the year 2000 to address the impediments of illiteracy through IT. Have you done any impact assessment of your initiative? Metrics for impact assessment are being developed. Oriya. Adult Literacy Programme (ALP).125 people. Education & Skill Building i. Currently.

research scholarships. TCS is the first organisation in India to sign MOU with NSDC.Annual Report 2012-13 Graduates of the Literacy Programme in Burkina Faso. Advanced Computer Training Center (ACTC) ACTC was set up with the objective of providing computer training and personality development to enhance the employability of individuals with visual impairment. faculty development programmes. UDAAN. v. research alliances. Students with TCS senior management at UDAAN Day celebrations Students at a training under TCS’ Academic Interface Programme iii. A total of 616 institutes in India and 288 institutes overseas were benefitted through the Company’s AIP activities like workshops for faculty and students. initiative for increasing employability of Kashmiri Youth Project UDAAN is a joint initiative between TCS. Government of India and Special Industry Initiative to help Kashmiri youth improve their employability and employment opportunities. The 14 week training programme has been designed by TCS. improve employability of students and develop curricula as per industry requirements. The training aims at building capability in spoken English. As part of NASSCOM initiative of overall curriculum revamping. Academic Interface Programme (AIP) The Company continues to invest on AIP initiatives with objectives of developing faculty for academic institutes. West Africa TCS associates contributing to skill development of support staff ii. the programme reached 131 beneficiaries. So far. EMPOWER. National Skill Development Corporation (NSDC). TCS designed training modules for different engineering branches. TCS has conducted two batches of training wherein 96 students g r a d u a t e d a n d 7 3 h a v e b e e n o ff e r e d employment with the Company. operating computers and building other soft skills. The programme also seeks to create employment 92 Business Responsibility Report . training programme for vendors The programme provides training to support service staff of vendors deployed in TCS. In FY13. project opportunities to students and student awards. iv.

healthcare and environment in 5 villages across India. Tamil Nadu. Computer hardware fundamentals being taught at ACTC Participants of the Rural IT Quiz with Dr Abdul Kalam vi. India’s biggest IT Quiz for schools started in 1999 for students studying in 8th to 12th grades to build awareness about technology and hone IT skills. Since 2008. Following the success of the programme in Karnataka. TCS associates through the ‘Women Empowerment Programme’ trained 45 women in screenprinting to enhance their livelihood options. 570 children in the village are benefitting through the provision of an infrastructure for clean drinking water at the primary school. TCS IT Wiz TCS IT Wiz. TCS trained 117 visually impaired under the scheme and facilitated employment of 70. viii. T C S M a i t r e e V i l l a g e D e v e l o p m e n t Programme TCS is working to deploy a sustainable model to improve education. vii. New Delhi Business Responsibility Report 93 . Summer Camp . Jharkhand and Rajasthan. For example. Rural IT Quiz TCS in collaboration with the Department of Information Technology.a part of TCS Maitree Village Development Programme at Challera. More than 190 people benefitted from the activities conducted by TCS associates in Nainar. promote inclusive growth and build confidence level of rural students. Maharashtra. in Panvel India. In FY13 nearly 14. Rural IT Quiz today also covers states of Madhya Pradesh.000 students from 3500 schools in India and 2000 students from 98 schools in Dubai participated in TCS IT Wiz.opportunities for them. In FY13 nearly 700.5 million students from over 8000 schools participated in the Rural IT Quiz. Gujarat. Government of Karnataka started India’s first Rural IT Quiz in the year 2000 to enhance IT awareness.

In FY13. Global Initiatives Go for IT. Bangalore and Mumbai in FY13. ii. Students who participate in the training and pass a TCS standard of proficiency are made offers based on fit and other selection parameters assessed as part of TCS BPO hiring policy. In addition. Since inception. finance & accounting). c. goIT. Beneficiaries of pro bono cleft palate surgery tracked through MIS system for Impact India Foundation e. Projects undertaken by the CSR TECH Team The CSR TECH Team uses technology as a key enabler to assist and resolve business challenges faced by social organisations while empowering them to be efficient and accountable. Health i. In FY13.50. has reached over 2.25.000 consultations were performed. 3. Affirmative Action i. broadband connection and a library to Manuski hostel. TCS contributed ` 3. the BPO employability programme has trained 22. d. TCS has sponsored education of 20 boys and 20 girls belonging to scheduled caste in two hostels run by Manuski.883 of them are TCS .2 crores. TCS provided TMC with pro bono IT services valued at Rs. iii. was launched in Australia. BPO Employability Programme The programme provides training in English and computer skills apart from providing good understanding of an industry domain (for example. More than 1. Kolkata.000 investigation results were reported and 1. a one week structured and intensive work placement initiative designed to encourage girls to consider IT as a career. 4. computers. This training 94 Business Responsibility Report . TCS has been supporting students through FAEA for the past 4 years.BPO associates now. web-based solution has been provided free of cost to the Cancer Institute at Chennai. MedMantra An integrated ‘Hospital Management System’ along with IT infrastructure including a comprehensive and fully integrated.236 students. Other Affirmative Action Programmes In FY13. BPO Employability training in progress at Gadu. the team provided end to end consultancy and architected comprehensive solutions for health focussed NGOs such as ‘Operation Smile’. Gujarat is free of cost. ‘Retina India Foundation’ and ‘CHILDLINE India Foundation’. 48 instructors were trained and certified in Kolkata. Tata Medical Center (TMC) TCS designed and implemented a comprehensive ‘Hospital Management System’ running on a state of art IT infrastructure for TMC. The programme has expanded to rural areas across 152 locations in India. ii.Annual Report 2012-13 b.000 towards 5 scholarships through Foundation for Academic Excellence and Access (FAEA) to help SC/ST students studying in professional courses.20. COPA ITI Training TCS has developed a ‘Faculty Development Programme’ focussing on ITI instructors of the ‘Computer Operator cum Programming Assistant’ (COPA) course which will improve the quality of training in the courses run by these instructors. FY13 marked the successful implementation of all 17 modules of MedMantra which were transitioned to a support mode. the Company has provided water filters.000 school students through summer camps and in-school workshops with a view to encourage a career in IT. In North America.

80 of these students have been invited to TCS for work experience.level campaign in support of Hurricane Sandy relief efforts. TCS associates volunteer time to help increase the student’s interest in their education Business Responsibility Report 95 . LATAM continues to focus on its Green Leaders programme that promotes recycling and reduced use of energy. TCS was awarded the “Best Company in 2012” by Fundacion Regazo in Chile highlighting our social spirit and commitment. TCS has grown tenfold in the last few years with associates working in several locations around the world. The Company has partnered with its client. The initiatives undertaken through TCS Maitree cultivate and propagate volunteer-driven. 148 associates across UK & Ireland volunteered to help over 500 students develop skills related to employability through the ‘Passport to Employability Programme’. TCS Maitree strives to create a spirit of camaraderie among TCS associates and their families by organising social activities and events. In the USA. meaningful activities for associates and their families. The intention is to empower them in their current jobs and also enable career growth. Landmark Group of Dubai to educate their low skilled employees on basic computer skills and Microsoft Office applications. Human Resources within TCS leads and facilitates all such associate engagement activities and programmes. TCS Maitree encourages associates and their families to look upon themselves as a part of TCS’ extended family. Volunteers also participated in the Operation Smile Mission in China where more than 80 patients with cleft palate received free operations. Volunteering through TCS Maitree Founded in February 2002. TCS partnered with American Red Cross for a national Green Leader’s programme in Latin America promoting environmental sustainability through paper recycling f. Ohio The TCS-SINDA IT Lab is aimed at strengthening the IT education of the lower income Indian community in Singapore. the Company partnered with Nielsen for their first ever Global Impact Day. TCS is working in partnership with Saudi Arabian General Investment Authority in the “Madinah Competitiveness Programme” to promote education. TCS associates and students at the goIT robotics camp at Cincinnati. National level partnerships have been launched with American Heart Association (AHA) and with NPower.

Initiatives conducted under CSR are tracked to determine the outcomes achieved and the benefits to the community. irresponsible advertising and/or anti-competitive behaviour during the last five years and pending as on end of financial year. Have you taken steps to ensure that this community development initiative is successfully adopted by the community? : Yes. Is there any case filed by any stakeholder against the company regarding unfair trade practices. Percentage of customer complaints pending as at March 31.Annual Report 2012-13 5. hence this question is not applicable. abuse of dominant position or unfair trade practices case pending against the Company. If so. Please explain in 50 words. 2013 : 16. telephonic and email communications are regularly carried out. The survey is done at an account-level and measures TCS’ performance on various parameters across multiple dimensions. monthly reports and follow-up field visits. Internal tracking mechanisms.49% 4. 96 Business Responsibility Report . Remarks (additional information) – None 3. provide details thereof. or so. in about 50 words or so. Did your company carry out any consumer survey/ consumer satisfaction trends? Customer satisfaction surveys are carried out on a half yearly basis. over and above what is mandated as per local laws? TCS is a software solution provider. There is no anti-competitive. The Company has engaged highly trained employees to drive and monitor the CSR activities. Does the company display product information on the product label. What percentage of customer complaints/ consumer cases are pending as on the end of financial year. 2. Principle 9 Businesses should engage with and provide value to their customers and consumers in a responsible manner 1.

Consolidated Financial Statements .

2013. the aforesaid consolidated financial statements give a true and fair view in conformity with the accounting principles generally accepted in India: (a) (b) (c) in the case of the Consolidated Balance Sheet. The procedures selected depend on the auditor’s judgement. Auditors’ Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. This responsibility includes the design. In making those risk assessments. whether due to fraud or error. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the consolidated financial statements. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. in the case of the Consolidated Statement of Profit and Loss. and a summary of the significant accounting policies and other explanatory information. Management’s Responsibility for the Consolidated Financial Statements The Company’s Management is responsible for the preparation of these consolidated financial statements that give a true and fair view of the consolidated financial position. which comprise the Consolidated Balance Sheet as at March 31. consolidated financial performance and consolidated cash flows of the Group in accordance with the accounting principles generally accepted in India. 97 Consolidated Financial Statements . of the state of affairs of the Group as at March 31. but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. of the profit of the Group for the year ended on that date. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Management. and based on the consideration of the reports of the other auditors on the financial statements / financial information of the subsidiaries referred to below in the Other Matter paragraph. and in the case of the Consolidated Cash Flow Statement. whether due to fraud or error. as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. the auditor considers internal control relevant to the Company’s preparation and presentation of the consolidated financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances.Annual Report 2012-13 INDEPENDENT AUDITORS’ REPORT ON CONSOLIDATED FINANCIAL STATEMENTS TO THE BOARD OF DIRECTORS OF TATA CONSULTANCY SERVICES LIMITED We have audited the accompanying consolidated financial statements of TATA CONSULTANCY SERVICES LIMITED (the “Company”) and its subsidiaries (the Company and its subsidiaries constitute the “Group”). of the cash flows of the Group for the year ended on that date. 2013. the Consolidated Statement of Profit and Loss and the Consolidated Cash Flow Statement for the year then ended. implementation and maintenance of internal control relevant to the preparation and presentation of the consolidated financial statements that give a true and fair view and are free from material misstatement. including the assessment of the risks of material misstatement of the consolidated financial statements. Opinion In our opinion and to the best of our information and according to the explanations given to us. We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India.

117366W) P. in so far as it relates to the amounts and disclosures included in respect of these subsidiaries.83 crores for the year ended on that date.Other Matter We did not audit the financial statements / financial information of certain subsidiaries. April 17. 2013.73 crores and net cash flows amounting to ` 192. is based solely on the reports of the other auditors. Our opinion is not qualified in respect of this matter. total revenues of ` 10. 2013 Consolidated Financial Statements 98 .R.RAMESH Partner (Membership No. whose financial statements / financial information reflect total assets (net) of ` 6.506. These financial statements / financial information have been audited by other auditors whose reports have been furnished to us by the Management and our opinion. 70928) Mumbai. as considered in the consolidated financial statements.13 crores as at March 31. For DELOITTE HASKINS & SELLS Chartered Accountants (Firm Registration No.062.

72 29283. Thyagarajan Director Dr.37 80. 2013 16 17 18 19 20 21 22 1-50 For and on behalf of the Board S.09 41330.97 574.77 17.74 41330.31 130.87 1446. 2013 (` crores) Note I.46 11842. Vijay Kelkar Director O.24 31576.50 20690. EQUITY AND LIABILITIES Shareholders’ funds (a) Share capital (b) Reserves and surplus Minority interest Non-current liabilities (a) Long-term borrowings (b) Deferred tax liabilities (net) (c) Other long-term liabilities (d) Long-term provisions Current liabilities (a) Short-term borrowings (b) Trade payables (c) Other current liabilities (d) Short-term provisions TOTAL II. Ramadorai Vice Chairman V.72 38350.99 348.98 235.64 3581. 2012 3 4 295. April 17.37 173.56 256.76 11520.49 13 6 (b) 14 15 Current assets (a) Current investments (b) Inventories (c) Unbilled revenue (d) Trade receivables (e) Cash and bank balances (f) Short-term loans and advances (g) Other current assets TOTAL III. Clayton M.04 3543.93 217.80 1895. P. Bhatt Director N.37 6564.77 2247.40 0.75 775.65 803.87 23061.02 4447. 2013 As at March 31.22 5234.71 254.73 695.04 4479. Ramesh Partner Dr.49 5 6 (a) 7 8 9 10 11 12 5991.81 3081.46 18268.89 3250.22 295.05 14076.13 2454. 2013 99 Consolidated Financial Statements . Chandrasekaran CEO and Managing Director Prof.22 4820.92 1083.56 52267.68 2850.35 5813.04 21.73 297.36 799.78 2410. Christensen Director Phiroz Vandrevala Director Rajesh Gopinathan Chief Financial Officer Mumbai.87 968.52 4233.36 8141.28 4727.14 457.23 558.51 29579.15 3160. NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS As per our report attached For Deloitte Haskins & Sells Chartered Accountants Cyrus Mistry Chairman Aman Mehta Director P.48 367. R.81 52267. April 17.30 310.66 929.Annual Report 2012-13 Consolidated Balance Sheet as at March 31.08 2229.14 10389. ASSETS Non-current assets (a) Fixed assets (i) Tangible assets (ii) Intangible assets (iii) Capital work-in-progress (b) (c) (d) (e) (f) Non-current investments Deferred tax assets (net) Long-term loans and advances Other non-current assets Goodwill (on consolidation) As at March 31.45 296.77 115.16 5821.56 6769.01 38645. Ron Sommer Director Ishaat Hussain Director Suprakash Mukhopadhyay Company Secretary Mumbai.

996 (b) Deferred tax (c) Fringe benefit tax 28 (d) MAT credit entitlement (368.00 (b) Operation and other expenses (c) Finance costs (d) Depreciation and amortisation expense TOTAL EXPENSES IV. Chandrasekaran CEO and Managing Director Prof.Consolidated Statement of Profit and Loss for the year ended March 31.73 18551. PROFIT BEFORE TAX Tax expense: (a) Current tax 28 4369.23 64167.06) 3399.31 70.61 48. Bhatt Director N. Christensen Director Phiroz Vandrevala Director Rajesh Gopinathan Chief Financial Officer Mumbai. V.94 35398.23 917.13 (455. Vijay Kelkar Director O. Ron Sommer Director Ishaat Hussain Director Suprakash Mukhopadhyay Company Secretary Mumbai.30) 0. April 17.71 2012 48893. Clayton M. Ramesh Partner Dr.48 1178. NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS As per our report attached For Deloitte Haskins & Sells Chartered Accountants Cyrus Mistry Chairman Aman Mehta Director P.20.69 13923.98 18089.45 109.58) 4014.31 23 24 2013 62989.49 1079. Thyagarajan Director Dr. R. VIII.07 195.99 0. April 17.92 46077. 2013 (` crores) Note I.72.30 12. 2013 Consolidated Financial Statements 100 . Expenses: (a) Employee benefit expenses 25 26 27 12 24039.99 195.96 10413. II.996 1-50 X.Basic and diluted (`) Weighted average number of equity shares (face value of ` 1 each) 39 14075.33 3886.72.04 VI.17 49322. Revenue from operations Other income (net) TOTAL REVENUE III. P.96 20909. 2013 For and on behalf of the Board S.38 13917. PROFIT FOR THE YEAR BEFORE MINORITY INTEREST Minority interest PROFIT FOR THE YEAR Earnings per equity share :. VII.69 158. Ramadorai Vice Chairman V.20.83 428.49 53. IX.28 22.09 (31.86 10523.24 15907.

46) 1339.16) (0.42 (1.38) (912.93 5.82 (0.17 18089.53 6.63 16.74) (41.41 419.24 4.68) (578.73 13923.83) (561.20) (16937.31 (2727.00) 3896.35 6. 2013 (` crores) Note I CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax Adjustments for: Depreciation and amortisation expense Bad debts written off Provision / (write back of provision) of doubtful receivables (net) Provision for doubtful advances Advances written off / (written back) (net) Diminution in value of investments (net) Interest expense (Gain) / Loss on sale of fixed assets (net) Unrealised exchange loss (net) Exchange difference on translation of foreign currency cash and cash equivalents Dividend income Impairment of goodwill Interest income Profit on redemption of mutual funds and sale of other current investments (net) Operating profit before working capital changes Inventories Unbilled revenue Trade receivables Loans and advances and other assets Trade payables.36) 18203.69) 7.12) 847.92 42.18 (765.07) 19.35 428.73 6.30 crores (March 31.81) 11614.66) (2007.23 0.63) 3551. 2012: Nil) Purchase of shares from minority shareholders Advance towards investment Purchase of mutual funds and other investments Redemption of mutual funds and sale of other investments Inter-corporate deposits placed Inter-corporate deposits matured Fixed deposit placed with banks having original maturity over three months Fixed deposit with banks matured having original maturity over three months Dividends received Interest received Net cash used in investing activities (2637.23) 0.039.71 (229.99) 17385.31 2013 2012 101 Consolidated Financial Statements .68 (6.84) 5.19 (25.75 (4721.41) 21.47) (1.94 44.80 16436.45) 1079.46 (31.22) 48.79 11045. other liabilities and provisions Cash generated from operations Taxes paid Net cash provided by operating activities II CASH FLOWS FROM INVESTING ACTIVITIES Purchase of fixed assets Proceeds from sale of fixed assets Acquisition of subsidiaries net of cash of ` 1.Annual Report 2012-13 Consolidated Cash Flow Statement for the year ended March 31.40) 6977.41 (3599.62) (28738.50) 28218.96 917.05 (898.77 (4821.91) (3342.23 (1676.31 (3.57 (4068.76) 14503.21) 992.47 798.02) (6.21) (2603.26 (162.22) (31.80 (6085.05) 22.07) 2330.29 2.80 (4251.49 (0.

including dividend tax Dividend tax on dividend paid by subsidiaries Dividend paid to minority shareholders of subsidiaries Proceeds from issue of shares to minority shareholders Interest paid Repayment of inter-corporate deposits Net cash used in financing activities Net (decrease) / increase in cash and cash equivalents Cash and cash equivalents at the beginning of the year Exchange difference on translation of foreign currency cash and cash equivalents Cash and cash equivalents at the end of the year Earmarked balances with banks Short-term bank deposits Cash and Bank balances at the end of the year IV NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS 20 1-50 20 2.37) (3955.81) (11. Clayton M.18) 1993.34 4911.16 (1. April 17. Thyagarajan Director Dr. Christensen Director Phiroz Vandrevala Director Rajesh Gopinathan Chief Financial Officer Mumbai.27 1993.05 1841. P. Ron Sommer Director Ishaat Hussain Director Suprakash Mukhopadhyay Company Secretary Mumbai. Vijay Kelkar Director O.47) (47.77 3803.95) (23.82 5813. 2013 (Contd.36 16.59 150.00) (5729. R.35) (17.38) 79.09) 294. Ramadorai Vice Chairman V.84 (5703.48) (200.46 6769.49 15.Consolidated Cash Flow Statement for the year ended March 31. 2013 Consolidated Financial Statements 102 . Ramesh Partner Dr.25) (32. April 17.12 (3. Chandrasekaran CEO and Managing Director Prof.12) 9.90) (3879.49 48.16) (12.63 1548.71 (22. Bhatt Director N.08 2013 2012 As per our report attached For Deloitte Haskins & Sells Chartered Accountants Cyrus Mistry Chairman Aman Mehta Director P.) (` crores) Note III CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of long-term borrowings Repayment of long-term borrowings Short-term borrowings (net) Dividend paid.48) (21. 2013 For and on behalf of the Board S.

75% of the Company’s equity share capital and has the ability to control its operating and financial policies. ii) iii) iv) v) c) Use of estimates The preparation of financial statements requires the management of the Group to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expense during the year. income and expenses. Business Intelligence.000 or less which are not capitalised except when they are part of a larger capital investment programme. 2006. Enterprise Solutions. Tata Sons Limited owned 73. b) Principles of consolidation The financial statements of the subsidiary companies used in the consolidation are drawn up to the same reporting date as of the Company. 2013. Example of such estimates include provision for doubtful receivables. accounting for contract costs expected to be incurred. Assurance. the attributable amount of goodwill is included in the determination of the profit or loss on disposal. The excess of the cost to the parent of its investments in a subsidiary over the parent’s portion of equity at the date on which investment in the subsidiary is made. as amended] and other relevant provisions of the Companies Act. except for certain financial instruments which are measured at fair value. is recognised as ‘Goodwill (on consolidation)’. The Group’s full services portfolio consists of Application Development and Maintenance. subsequent to the dates of investments. the useful lives of depreciable fixed assets and provision for impairment. Inter-company balances and transactions and unrealised profits or losses have been fully eliminated. the difference is treated as ‘Capital Reserve (on consolidation)’ in the consolidated financial statements. When the cost to the parent of its investment in a subsidiary is less than the parent’s portion of equity of the subsidiary at the date on which investment in the subsidiary is made. 1956. 2) SIGNIFICANT ACCOUNTING POLICIES a) Basis of preparation These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. The consolidated financial statements include the share of profit / loss of associate companies. Business Process Outsourcing.by-line basis by adding together like items of assets. The consolidated financial statements have been prepared on the following basis: i) The financial statements of the Company and its subsidiary companies have been combined on a line. provision for income taxes. IT Infrastructure Services. An associate is an enterprise in which the investor has significant influence and which is neither a subsidiary nor a joint venture. Costs include all expenses incurred to bring the assets to its present location and condition. 103 Consolidated Financial Statements . These financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211(3C) [Companies (Accounting Standards) Rules. Consulting and Asset Leveraged Solutions. liabilities. less accumulated depreciation/amortisation.Annual Report 2012-13 Notes forming part of the Consolidated Financial Statements 1) CORPORATE INFORMATION Tata Consultancy Services Limited (the “Company”) and its subsidiaries (collectively referred to as the “Group”) provide consulting-led integrated portfolio of information technology (IT) and IT-enabled services delivered through a network of multiple locations around the globe. Engineering and Industrial Services. As of March 31. which are accounted under the ‘Equity method’ as per which the share of profit / loss of the associate company has been adjusted to the cost of investment. employee benefits. Minority interest in the net assets of consolidated subsidiaries consists of the amount of equity attributable to the minority shareholders at the dates on which investments in the subsidiary companies are made and further movements in their share in the equity. On disposal of a subsidiary. The Company’s registered office is in Mumbai and it has 58 subsidiaries across the globe. Fixed assets exclude computers and other assets individually costing ` 50. d) Fixed Assets Fixed assets are stated at cost.

63% . Each lease rental paid is allocated between the liability and the interest cost so as to obtain a constant periodic rate of interest on the outstanding liability for each year. Investments Long-term investments and current maturities of long-term investments are stated at cost. such amounts are recognised as receivables at an amount equal to the net investment in the lease and the finance income is based on a constant rate of return on the outstanding net investment. Reversal of impairment loss is recognised immediately as income in the statement of profit and loss.63% .89% 9.33% 13. Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vests with the lessor.91% 4.Notes forming part of the Consolidated Financial Statements e) Depreciation/Amortisation Depreciation/Amortisation on fixed assets other than on freehold land and capital work-in-progress is charged so as to write-off the cost of the assets. Impairment At each balance sheet date.50% 10.50% 25. on the following basis: Type of asset Leasehold land and buildings Freehold buildings Factory buildings Leasehold improvements Plant and machinery Computer equipment Vehicles Office equipment Electrical installations Furniture and fixtures Goodwill Acquired contract rights Intellectual property / distribution rights Software licenses Rights under licensing agreement f) Method Straight line Written down value Straight line Straight line Straight line Straight line Straight line Written down value Straight line Written down value Straight line Written down value Straight line Straight line Straight line Straight line Straight line Straight line Straight line Straight line Rate / Period Lease period 5.33% 6. Leases Where the Group.33.60 months License period 20% .00% 1.75% . If any such indication exists.2. the management reviews the carrying amounts of its assets included in each cash generating unit to determine whether there is any indication that those assets were impaired.33.33% 10% . the recoverable amount of the assets is estimated in order to determine the extent of impairment. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit. are recognised as operating lease. the impairment loss is allocated first to reduce the carrying amount of goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. Cash-generating units to which goodwill has been allocated are tested for impairment annually or more frequently when there is indication for impairment. Recoverable amount is the higher of an asset’s net selling price and value in use. Consolidated Financial Statements 104 . goodwill is allocated to each of the Group’s cash-generating units expected to benefit from the synergies of acquisition. where the Group has substantially all the risks and rewards of ownership are classified as finance lease. For the purpose of impairment testing.91% 6. Current investments. less provision for other than temporary diminution in value. Assets taken on lease by the Group in its capacity as lessee. as a lessor.63% . are stated at the lower of cost and fair value.50% .33% 13.100% 12 years 12 years 24 . In assessing value in use. Lease rentals under operating lease are recognised in the statement of profit and loss on a straight-line basis.33. the estimated future cash flows expected from the continuing use of the asset and from its disposal are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of time value of money and risks specific to the asset. except for current maturities of long term investments. Such leases are capitalised at the inception of the lease at lower of the fair value or the present value of the minimum lease payments and a liability is recognised for an equivalent amount. leases assets under finance lease.00% Lease period 33.50% License period g) h) Fixed assets purchased for specific projects are depreciated over the period of the project.

with contract costs determining the degree of completion. The retirement benefit obligation recognised in the balance sheet represents the present value of the defined benefit obligation as adjusted for unrecognised past service cost. Interest income is recognised on time proportion basis taking into account the amount outstanding and the rate applicable. Deferred tax expense or benefit is recognised on timing differences being the difference between taxable income and accounting income that originate in one period and is likely to reverse in one or more subsequent periods. which gives rise to future economic benefits in the form of adjustment of future income tax liability. Past service cost is recognised immediately to the extent that the benefits are already vested or amortised on a straight-line basis over the average period until the benefits become vested. In the event of unabsorbed depreciation and carry forward of losses. Actuarial gains and losses are recognised in full in the statement of profit and loss for the period in which they occur. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. ii) Other employee benefits The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees is recognised during the period when the employee renders the service. In respect of Business Process Outsourcing (BPO) services. j) Revenue recognition Revenue from contracts priced on a time and material basis are recognised when services are rendered and related costs are incurred. MAT is recognised as an asset in the balance sheet when the asset can be measured reliably and it is probable that the future economic benefit associated with the assets will fructify. 1961. whereas revenue from fixed price contracts is recognised using the proportionate completion method with contract cost determining the degree of completion. Revenue from the sale of equipment are recognised upon delivery. Revenue from turnkey contracts. In case of customisation the same is recognised over the life of the contract using the proportionate completion method. Revenue from maintenance contracts are recognised on pro-rata basis over the period of the contract. revenue on time and material and unit priced contracts is recognised as the related services are rendered. and as reduced by the fair value of scheme assets. k) Taxation Current income tax expense comprises taxes on income from operations in India and in foreign jurisdictions. deferred tax assets are recognised only to the extent that there is virtual certainty that sufficient future taxable income will be available to realise such assets. deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available to realise these assets. For defined benefit schemes. These benefits include compensated absences such as paid annual leave. Accordingly. overseas social security contributions and performance incentives. which are generally time bound fixed price contracts.Annual Report 2012-13 Notes forming part of the Consolidated Financial Statements i) Employee benefits i) Post-employment benefit plans Contributions to defined contribution retirement benefit schemes are recognised as expense when employees have rendered services entitling them to such benefits. Any asset resulting from this calculation is limited to the present value of available refunds and reductions in future contributions to the scheme. In other situations. Dividend is recorded when the right to receive payment is established. with actuarial valuations being carried out at each balance sheet date. the cost of providing benefits is determined using the Projected Unit Credit Method. are recognised over the life of the contract using the proportionate completion method. Revenue from sale of software licenses are recognised upon delivery where there is no customisation required. Income tax payable in India is determined in accordance with the provisions of the Income Tax Act. Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India. is considered as an asset if there is convincing evidence that the Company and its Indian subsidiaries will pay normal income tax after the tax holiday period. Tax expense relating to foreign operations is determined in accordance with tax laws applicable in countries where such operations are domiciled. Revenue is reported net of discounts. Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related services are recognised as an actuarially determined liability at the present value of the defined benefit obligation at the balance sheet date. which is when the title passes to the customer. 105 Consolidated Financial Statements . Foreseeable losses on such contracts are recognised when probable.

m) Derivative instruments and hedge accounting The Group uses foreign exchange forward and currency option contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. in respect of which reliable estimate can be made. Hedge accounting is discontinued when the hedging instrument expires or is sold. The Group offsets deferred tax assets and deferred tax liabilities if it has a legally enforceable right and these relate to taxes on income levied by the same governing taxation laws.Notes forming part of the Consolidated Financial Statements Advance taxes and provisions for current income taxes are presented in the balance sheet after off-setting advance tax paid and income tax provision arising in the same tax jurisdiction for relevant tax paying units and where the Group is able to and intends to settle the asset and liability on a net basis. any cumulative gain or loss on the hedging instrument recognised in shareholders’ funds is retained there until the forecasted transaction occurs. on a systematic and rational basis. Exchange difference arising on a monetary item that. Changes in the fair value of derivative financial instruments that do not qualify for hedge accounting are recognised in the statement of profit and loss as they arise. other than designated cash flow hedges. If a hedged transaction is no longer expected to occur. less provision for obsolescence. construct or otherwise acquire capital assets are presented by deducting them from the carrying value of the assets. Premium or discount on foreign exchange forward and currency option contracts are amortised and recognised in the statement of profit and loss over the period of the contract. which provide written principles on the use of such financial derivatives consistent with the risk management strategy of the Company and its subsidiaries. income and expenses are translated at average rates and the assets and liabilities are stated at closing rate. The grant is recognised as income over the life of a depreciable asset by way of a reduced depreciation charge. Changes in the fair value of these derivatives that are designated and effective as hedges of future cash flows are recognised directly in shareholders’ funds and the ineffective portion is recognised immediately in the statement of profit and loss. are stated at fair values and any gains or losses are recognised in the statement of profit and loss. Provisions (excluding retirement benefits) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. Finished goods produced or purchased by the Group are carried at the lower of cost and net realisable value. Contingent liabilities and Contingent assets A provision is recognised when the Group has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation. Cost includes direct material and labour cost and a proportion of manufacturing overheads. in substance. forms part of an enterprise’s net investments in a non-integral foreign operation are accumulated in a foreign currency translation reserve. Stores and spare parts are carried at cost. Cost is determined on a weighted average basis. The use of hedging instruments is governed by the policies of the Company and its subsidiaries which are approved by their respective Board of Directors. The Group designates these hedging instruments as cash flow hedges. For the purpose of consolidation. or exercised. terminated. Government grants whose primary condition is that the Group should purchase. o) Government grants Government grants are recognised when there is reasonable assurance that the Group will comply with the conditions attached to them and the grants will be received. and are remeasured at subsequent reporting dates. At that time for forecasted transactions. Purchased goods-in-transit are carried at cost. Work-in-progress is carried at the lower of cost and net realisable value. Foreign currency monetary assets and liabilities other than net investments in non-integral foreign operations are translated at the exchange rate prevailing on the balance sheet date and the exchange gains or losses are recognised in the statement of profit and loss. l) Foreign currency transactions Income and expense in foreign currencies are converted at exchange rates prevailing on the date of the transaction. or no longer qualifies for hedge accounting. These are reviewed at each balance sheet date and adjusted to reflect the Consolidated Financial Statements 106 . Hedging instruments are initially measured at fair value. the net cumulative gain or loss recognised in shareholders’ funds is transferred to the statement of profit and loss for the period. p) Provisions. Other government grants are recognised as income over the periods necessary to match them with the costs for which they are intended to compensate. The net impact of such change is accumulated under foreign currency translation reserve. n) Inventories Raw materials. sub-assemblies and components are carried at the lower of cost and net realisable value. Foreign exchange forward and currency option contracts outstanding at the balance sheet date.

72.72.00.72 a) Reconciliation of number of shares As at March 31.00.000 100.00.72. A contingent asset is neither recognised nor disclosed in the financial statements.996 195.00 195.72.00.72 325.996 equity shares of ` 1 each) 100.00.00 Issued.000 100. which are readily convertible into known amounts of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase. q) Cash and cash equivalents The Group considers all highly liquid financial instruments.00. 2012 Number of shares Amount (` crores) 295.72 195. except in case of interim dividend.20.00.00. 2012 : 100.00. issued.20. to be cash equivalents. 2012 : 100.000 100.000 redeemable preference shares of ` 1 each (March 31.00.00 100.00 100.00 100.000 redeemable preference shares of ` 1 each) 295. subscribed and fully paid-up share capital comprises of equity shares and redeemable preference shares having a par value of ` 1 each as follows: (` crores) As at March 31.996 equity shares of ` 1 each (March 31. Contingent liabilities are not recognised in the financial statements. in proportion to their shareholding.00.00.00.00.996 195.00.00 100. 2012 Rights.20.00 100.00.20. Subscribed and Fully Paid-up (i) (ii) 195.72 Amount (` crores) As at March 31.000 redeemable preference shares of ` 1 each (March 31.00 225.72 195.00. 2013 Number of shares Equity shares Opening balance Changes during the year Closing balance Preference shares Opening balance Changes during the year Closing balance b) 100. 2013 Authorised (i) (ii) 225.000 redeemable preference shares of ` 1 each) 325.000 100. 2012 : 195.72 100.Annual Report 2012-13 Notes forming part of the Consolidated Financial Statements current best estimates.72 195.00 195.00.00 225. the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts.20.000 equity shares of ` 1 each (March 31.00 As at March 31.00.000 equity shares of ` 1 each) 100. 3) SHARE CAPITAL The authorised.72 195.20.72.996 195. preferences and restrictions attached to shares Equity shares The Company has one class of equity shares having a par value of ` 1 each.996 195. In the event of liquidation.00.72. 2012 : 225. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.00 100. 107 Consolidated Financial Statements . Each shareholder is eligible for one vote per share held.

698 equity shares (March 31.00.698 73.498 equity shares as fully paid-up bonus shares by utilisation of Securities premium reserve on June 18. Consolidated Financial Statements 108 .06 0.70.04 0.10.75% As at March 31.51. c) Shares held by holding company and its subsidiaries and associates (` crores) As at March 31.000 redeemable preference shares) are held by Tata Sons Limited Total d) 100. the Holding Company Preference shares Tata Sons Limited.06 0. 2012 : 452 equity shares) are held by The Tata Power Company Limited Total Preference shares Holding Company 100.00% 100.35 As at March 31.00.232 equity shares (March 31.Notes forming part of the Consolidated Financial Statements Preference shares Preference shares would be redeemable at par at the end of six years from the date of allotment i. 2012 e) Shares allotted as fully paid up by way of bonus shares (during 5 years preceding March 31. 2012 : 144.452 equity shares) are held by Tata Investment Corporation Limited 200 equity shares (March 31.01 144. but may be redeemed at any time after 3 years from the date of allotment at the option of the shareholder.34. 2013) The Company allotted 97.00 0.52 0.700 equity shares) held by Tata Industries Limited Nil equity share (March 31.00. March 28.51. 2012 : 200 equity shares) are held by Tata Capital Limited Nil equity share (March 31. 2009 pursuant to shareholder’s resolution passed by postal ballot on June 12.51.00 100.35 144.000 redeemable preference shares (March 31.232 equity shares) are held by Tata International Limited 452 equity shares (March 31.00 100.735 equity shares) are held by Tata AIG Life Insurance Company Limited 5.29.00% 144.2012 : 20.34. These shares would carry a fixed cumulative dividend of 1% per annum and a variable non-cumulative dividend of 1% of the difference between the rate of dividend declared during the year on the equity shares of the Company and the average rate of dividend declared on the equity shares of the Company for three years preceding the year of issue of the redeemable preference shares.00. 2013 Equity shares Holding Company 144.00 100.698 73.452 equity shares (March 31.01 144.86.34.34. the Holding Company 100.698 equity shares) are held by Tata Sons Limited Subsidiaries and associates of Holding Company 10.200 equity shares) are held by Tata Global Beverages Limited 83.700 equity shares (March 31.29. 2012 : 3.10 0.00.2012 : 10.90.00. 2012 : 100.75% 144.00.51. 2009.10 0.2012 : 5.e.91.00. 2008.2012 : 83.000 100.000 100.90.21 0. 2012 Details of shares held by shareholders holding more than 5% of the aggregate shares in the Company As at March 31. 2013 Equity shares Tata Sons Limited.77 144.

09) 3367.40 1918.65 22160.65 29529.27 18635.39 19.49 29048.86 1166. 5) LONG-TERM BORROWINGS Long-term borrowings consist of the following: As at March 31.00 806.22) 35951.17 1166.47 200.76 115.97 38350.10 22160. 2013 (a) (b) Secured loans Long-term maturities of finance lease obligations Unsecured loans Other borrowings (from entities other than banks) 129.00) (23.49 3131.42 192.01 (` crores) As at March 31. 2013 24.69 972.31 (103.79 16.55 22.80 16.10 4533.77 578.65 16.52 130.20 46.26) 1352.Annual Report 2012-13 Notes forming part of the Consolidated Financial Statements 4) RESERVES AND SURPLUS Reserves and surplus consist of the following reserves: As at March 31.11 4533.73 (195.51 (a) (b) (c) (d) Capital reserve (on consolidation) Capital redemption reserve Securities premium reserve Foreign currency translation reserve (i) Opening balance (ii) Additions during the year (net) Hedging reserve (Refer note 42) (i) Opening balance (ii) Additions/(deductions) during the year (net) General reserve (i) Opening balance (ii) Adjustment on amalgamation (Refer note 31) (iii) Transferred from surplus in statement of profit and loss Statutory reserve (i) Opening balance (ii) Transferred from surplus in statement of profit and loss Surplus in statement of profit and loss (i) Opening balance (ii) Add : Profit for the year (iii) Transferred on amalgamation (Refer note 31) (iv) Adjustment for post acquisition profits (net) (Refer note 31) (v) Less : Appropriations (a) Interim dividends on equity shares (b) Proposed final dividend on equity shares (c) Dividend on redeemable preference shares (d) Tax on dividend (e) General reserve (f) Statutory reserve (e) (f) (g) (h) The Board of Directors at its meeting held on April 17.54 13917.46 1.79 5841.54 1761.50 0.82) (133.54 29283.61 2.37 Obligations under finance lease are secured against fixed assets obtained under finance lease arrangements. 2012 112.42 62.98 (` crores) As at March 31.11 (133.40 1918.27 (44.47 779.34 1352.65 779.00 727. 2013 has recommended a final dividend of ` 13 per equity share.09) 179. 109 Consolidated Financial Statements .05 10413.63 1761. 2012 24.49 2544.50 0.

13 118. 2013 Provision for employee benefits 348.63 202.65 52.07 235.93 (30.05) 67.99 367.65 217. 2012 Consolidated Financial Statements 110 .45 (` crores) As at March 31. 2012 217.69) 174.92 348. loans and advances Others 160. 2012 10.27 8.63 286.04 102.96 256. 2013 (a) Deferred tax liabilities (net) (i) (ii) (iii) (iv) (v) Foreign branch profit tax Depreciation and amortisation Employee benefits Provision for doubtful receivables.67 310.94) 135.38 6.49 53.65 54.99 Other liabilities pertains to : Fair values of foreign exchange forward and currency option contracts secured against trade receivables Capital creditors Others 8) LONG-TERM PROVISIONS Long-term provisions consist of the following: As at March 31.84 10.51 31. loans and advances Others (58.25 70. (` crores) As at March 31.74 173.Notes forming part of the Consolidated Financial Statements 6) DEFERRED TAX BALANCES Major components of deferred tax balances consist of the following: As at March 31.16 (` crores) As at March 31.11 76.34 313.48 (b) Deferred tax assets (net) (i) (ii) (iii) (iv) Depreciation and amortisation Employee benefits Provision for doubtful receivables.77 80.96 (0.77) (0.30 296. 2013 (a) (b) Trade payables Other Iiabilities 367.22 7) OTHER LONG-TERM LIABILITIES Other long-term liabilities consist of the following: As at March 31.92 Provision for employee benefits includes provision for gratuity and other post retirement benefits.

72 2410.02 Secured loans from banks are secured against trade receivables. 2012 1.41 (` crores) As at March 31. 2012 641.26 11.07 4727.02 80.65 410.97 249.89 Obligations under finance lease are secured against fixed assets obtained under finance lease arrangements.55 22. 2013 (a) (b) Provision for employee benefits Others (i) (ii) Proposed final dividend on equity shares Proposed dividend on redeemable preference shares 2544.24 20.40 71.24 9.93 3081.46 3131.52 Other payables include : Fair values of foreign exchange forward and currency option contracts secured against trade receivables Statutory liabilities Capital creditors Class action suit settlement consideration (Refer note 46) 72.00 455.00 524.Annual Report 2012-13 Notes forming part of the Consolidated Financial Statements 9) SHORT-TERM BORROWINGS Short-term borrowings consist of the following: As at March 31. 2012 0.10 866.37 98.38 612.05 0.69 966.05 823.28 (` crores) As at March 31.20 4233.45 (iii) Tax on dividend (iv) Current income taxes (net) Provision for employee benefits includes provision for compensated absences and other short-term employee benefits.81 1495.01 9.07 167. 111 Consolidated Financial Statements . 2013 (a) (b) (c) (d) (e) (f) (g) Current maturities of long-term debt Current maturities of finance lease obligations Interest accrued but not due on borrowings Income received in advance Unpaid dividends Advance received from customers Other payables 1.03 0. 11) SHORT-TERM PROVISIONS Short-term provisions consist of the following: As at March 31.00 1983.22 (` crores) As at March 31.87 161.39 19.63 240. 10) OTHER CURRENT LIABILITIES Other current liabilities consist of the following: As at March 31.07 408. 2013 (a) (b) Secured loans Loans repayable on demand from banks Unsecured loans Loans repayable on demand from banks 80.14 804.89 0.

18 0.07) (63.74 4.83) (572.79 (1937.54 3.81 15. 2012: ` 2.02 10.18 8843.60) (7.21 496.16) 9.19 102.07 1135.67 crores) being value of investment in shares of Co-operative Housing Societies and Limited Companies.07) (0.99 254.96) (544.74 5.17 (443.20) (31. 2012: ` 20.58 608.29 63.89 crores) and lease hold improvements of ` 77.53 crores (March 31.56) (120.90 2.34) 7198.11 11.12) 26.68 391.89) (23.11 126.11 (0.65 2903.68 1.85) (306.83 2274. (iii) Additions include ` 97.60) (7. (vi) Deletions/adjustments include ` 15.93 58.25) 2.19 759.53 8843.97 (63.28 (24.69 53.41 0.36) (545.50 26. 2012: ` 92.56 0.12 (15.36 9447.22 10.35 19.05) (1079. (v) Net book value of computer equipment of ` 64.84) 219.72) 1052.05) 132.82) (61.31) 716.27 43.04 343.26) 185.22) (158.02) (19.32) (6.66) (112.59) (0.38) (14.05) 2.22) (3263.73) 626.14 0.55 crores being value of fixed assets transferred on acquisition of Computational Research Laboratories Limited.56 (0.20 (440.48) 343.77 16.99) (10.27 297.21 12.08) (103.01) (281.11 1248.62 (2.56 crores being the accumulated depreciation on fixed assets of Computational Research Laboratories Limited as at the time of acquisition.36 2889.60 1.33) 0.04 2.25) 5. Consolidated Financial Statements (iv) Adjustments to accumulated depreciation is net-off ` 68.23) 8.48 99. 2012 Depreciation / Amortisation for the year Deletions/ Adjustments Translation exchange difference Accumulated Depreciation / Amortisation as at March 31.93) 62.35) (1016.07 14.87 1446. 112 .78) (11.65 603.87 5991.83 270. 2013 Accumulated depreciation / Amortisation as at April 1.61) (3.20) 720.68) 1.23 186.94) 41. 2012 Additions Deletions/ Adjustments Translation exchange difference Gross Block as at March 31.27) 72.64 900.73) 3.98) 64.35) 103.49 10.00) 4.03 1.48 86.42) (8.43 702.88 11622.09 86.32 50.07 (13.94) 36.92) 130.27 205.12 2.32) 3.06 51.99 (306.74 59.44 (3.03 (1.19 1049.03) (0.18 (0.87) 72.16) (5004.87 Net book value as at March 31.55 (1.67 crores (March 31.55) (0.95 2255.71 4820.59 16.77) (18.03 (449.34 161.23) (0.25) 201.60 crores (March 31.75 267.03) (1.92) (6.44) 0.72 crores arising on realignment of depreciation policies of Retail FullServe Limited and Computational Research Laboratories Limited consequent to the amalgamation with the Company.86 (140.63 (0.50) (18.44) 1.44) (48. 2013 (13.23) (11.89 (150.88 492.08 1.07 1.53) (1.53 576.43) (0.57 crores) are under finance lease.37 6564.77 2420.61 (860.92) 3.77 (1.70 2166.10 1723.66) (57.93 2.15 (4.22) (371.43) 4.50 10996.73 Freehold land Leasehold land Freehold buildings Factory buildings Leasehold buildings Leasehold Improvements Plant and machinery Computer equipment Vehicles Office equipment Electrical installations Furniture and fixtures Total Previous year (ii) Intangible assets Goodwill on acquisition Acquired contract rights Intellectual property / distribution rights Software licenses Rights under licensing agreement Total Previous year (iii) Capital work-in-progress Grand Total (i) Freehold buildings include ` 2.19 1.24 11.60) (2411.94 3547.55 (80.49 11. 2012 Fixed assets consist of the following: Description (i) Tangible assets 331.42) (1.24 721.10 965.85) (100.29) (18.42) (85.43) (0.59 (13.63) (473.87 1895.97 133.80 4820.87 9.59 331.95 (4023.79 (16.06 14.88 593.42) (134.Notes forming part of the Consolidated Financial Statement 12) FIXED ASSETS (` crores) Gross Block as at April 1.29) (2.30) (469.41 18.24 8141.63) (4023.53 (0.67 (10.41 1797.80 297.01) (121.73) (4329.32) (407.87) (16.59 187.34 1.11) (11.00 603.76) (29.73 112.20) 7.73 crores (March 31.28 (3.01) (5376.89 (1.10 940. (ii) Legal formalities relating to conveyance of freehold building having net book value ` 10.73) (116.18 208.57) 0.06 (330.59 crores) are pending completion.92 10. 2012: ` 11. 2013 Net book value as at March 31.59 (10.94 12.89) (1.61 (368.15 507.83 (139.

12 24. 2013 (a) (b) Secured.05 19.56 1. 2013.45) 4479.27 448. 14) LONG-TERM LOANS AND ADVANCES Long-term loans and advances consist of the following: (` crores) As at March 31.33) 5234.17) 574. considered good (i) Capital advances (ii) Security deposits (iii) Loans and advances to employees (iv) Loans and advances to related parties (v) Advance tax (including refunds receivable) (net) (vi) MAT credit entitlement (vii) Other loans and advances Unsecured.63 0.01 9.58 1.73 (1.43 48.26 968. 2013 have been renewed for a further period of three years with a revised interest rate of 9.09 481.13 As at March 31. respectively.22 24.20 491.65 5.36 1406.50% and would be redeemable at par in three equal installments at the end of second.13 1856. considered doubtful Other loans and advances Less : Provision for doubtful loans and advances 0. 2012 * Unquoted debentures include subscription to the privately placed unsecured. The debentures issued by Tata Sons Limited carry an interest rate of 8. 2013 (a) TRADE INVESTMENTS (at cost) Fully paid equity shares (unquoted) National Power Exchange Limited Philippine Dealing System Holdings Corporation Firstech Solutions Co.34 7.30 523.00 1. 2012 and 2013.06 1465.06 1840. ALMC HF Kooh Sports Private Limited (b) OTHER INVESTMENTS Debentures and bonds (unquoted)* Government securities (unquoted) Mutual funds and other funds (unquoted) Less: Provision for diminution in value of investments 910. third and fourth year.00 3.40 4.43 0.Annual Report 2012-13 Notes forming part of the Consolidated Financial Statements 13) NON-CURRENT INVESTMENTS Non-current investments consist of the following: (` crores) As at March 31. The debentures issued by Panatone Finvest Limited due for redemption on March 31.40 4. 2012 0.91 575.89 19.50% during the year ended March 31. respectively from the date of allotment.79 541. Limited Taj Air Limited Yodlee. The first two installments of the debentures issued by Tata Sons Limited have been redeemed during the year ended March 31. respectively.27 346. Inc. unlisted redeemable non-convertible debentures issued by Tata Sons Limited in January 2010 and its subsidiary Panatone Finvest Limited in March 2010 for a consideration of ` 1000 crores and ` 200 crores.83 722.68 (c) 113 Consolidated Financial Statements .12) 968.91 48.45 (0.33 (0.42 (0.67 1.00 As at March 31. considered good Loans and advances to employees Unsecured.

2012 13.40 52.03) 0.87 2. 2013 37.96 335.30 341.04 As at March 31.17 21. 2012 5. 2013 Loans and advances to related parties pertain to: Tata Sons Limited Tata Realty And Infrastructure Limited Other loans and advances considered good include: Inter-corporate deposits Indirect tax recoverable Prepaid expenses 15) OTHER NON-CURRENT ASSETS Other non-current assets consist of the following: (` crores) As at March 31.88 As at March 31.04 (i) (ii) (iii) Market value of quoted investments Book value of quoted investments Book value of unquoted investments 7.46 0.93 131.53 0.39 54.46 533.39 281. sub-assemblies and components Finished goods and work-in-progress Stores and spares Goods-in-transit Consolidated Financial Statements 114 .01 586.77 (a) (b) (c) (d) Raw materials.46 768.97 45.15 Inventories are carried at the lower of cost and net realisable value.18 7.64 Other non current assets include long-term bank deposits 16) CURRENT INVESTMENTS Current investments consist of the following: (` crores) As at March 31.31 2411.49 1. As at March 31.30 17.93 6. 2012 2.45 2.28 2.13 2454.80 358.96 2717.78 6.14 929.97 922.77 8. 2013 6.00 229.51 2417.74 45.65 11.33 775.04 2704. 13 .Notes forming part of the Consolidated Financial Statements (` crores) As at March 31. 2012 0.96 (0.98 7.15 2850. 2013 0.61 (a) Future finance lease receivables Less: Unearned finance income Interest receivable Other non-current assets (b) (c) (a) (b) (c) (d) (e) Fully paid preference shares (unquoted) Fully paid equity shares (quoted) Investment in mutual funds (unquoted) Investment in bonds (quoted) Investment in debentures and bonds (unquoted)* *Refer note no.Non-current investments 17) INVENTORIES Inventories consist of the following: (` crores) As at March 31.07 As at March 31.

19) TRADE RECEIVABLES (Unsecured) Trade receivables consist of the following: (` crores) As at March 31.41 17.35 20) CASH AND BANK BALANCES Cash and bank balances consist of the following: (` crores) As at March 31.35 crores (March 31.71 11713.46 6769.95 624.76 crores) primarily comprises of the revenue recognised in relation to efforts incurred on turnkey contracts priced on a fixed time. 2012: ` 0.40 14266.80 Less: Provision for doubtful receivables (190. amounting to ` 3160.60 49.84 1058.82 5813.56 10461.49 As at March 31. 2012 Others (i) (ii) Considered good Considered doubtful 12648.76 0.08 1136.08 14. 2013.88 1.53 16.24) 14076.77 3803.98 17.05 crores (March 31.36 (b) Other bank balances (i) (ii) Earmarked balances with banks Short-term bank deposits 16.49 1993.54 1841.80 189.14 4.31 crore) operated by the Company on behalf of a third party.54 As at March 31.54) 11520. 2013 (a) Over six months from the date they were due for payment (i) (ii) (b) Considered good Considered doubtful 1427.16 15. 2012 : ` 2247.Annual Report 2012-13 Notes forming part of the Consolidated Financial Statements 18) UNBILLED REVENUE Unbilled revenue as at March 31. 2012 (iii) Cash on hand (iv) Remittances in transit Balances with banks in current accounts do not include fourteen bank accounts having a balance of ` 1.64 193. 115 Consolidated Financial Statements .27 804. 2013 (a) Cash and cash equivalents (i) Balances with banks In current accounts In cash credit accounts In deposit accounts with original maturity less than 3 months (ii) Cheques on hand 1129.34 4911. fixed price basis.98 17.89 (193.

00 2.89 152.42 799. 2013 (a) (b) Secured.78 114.18 0.39 0.96 (0.01 120. considered good Loans and advances to employees Unsecured.24 430.61 152. considered doubtful Less : Provision for doubtful loans and advances Consolidated Financial Statements 116 .63 (49. considered good (i) (ii) Loans and advances to employees Loans and advances to related parties 202.01 30.54 3634.80 502.37 130.82 50.00 815.29 1895.02) 2229.05 4. 2013 (a) Future finance lease receivables Less: Unearned finance income 0.77 1130.13 50.93 (b) (c) Interest receivable Other current assets 765.48 26.02 0.17 33.98 38.90 4.14) 1.03) 0.89 32.43 10.04 0.36 Loans and advances to related parties pertain to: Tata Sons Limited Tata Realty And Infrastructure Limited Tata Teleservices Limited Tata AIG General Insurance Company Limited Tata Teleservices (Maharashtra) Limited Tata Autocomp Systems Limited Other loans and advances considered good include: Fair values of foreign exchange forward and currency option contracts Security deposits Inter-corporate deposits Prepaid expenses 22) OTHER CURRENT ASSETS Other current assets consist of the following: (` crores) As at March 31.14 1.43 5557.01 0.24 As at March 31.00 0. 2012 (iii) Advance tax (including refunds receivable) (net) (iv) MAT credit entitlement (v) (c) (i) (ii) Other loans and advances Loans and advances to employees Other loans and advances Unsecured.87 187.36 As at March 31.83) 5821.21 (46. 2012 1.00 170.15 457.38 (0.81 12.Notes forming part of the Consolidated Financial Statements 21) SHORT-TERM LOANS AND ADVANCES Short-term loans and advances consist of the following: (` crores) As at March 31.20 11.

01 0.23 49.51) (748.25) 48893.93 119.00 1767.82) 62989.41 0.84 0.21 1531.41 31.96 24039.35) (426.27 24.75 1178.03 18551.46 680.02) 34.93 1392.11 168.54 2012 16332.47 41.76 16.Annual Report 2012-13 Notes forming part of the Consolidated Financial Statements 23) REVENUE FROM OPERATIONS Revenue from operations consist of revenue from: (` crores) 2013 (a) (b) Information technology and consultancy services Sale of equipment and software licences Less : Excise duty 61223.40 2012 765.48 24) OTHER INCOME (Net) Other income (net) consists of the following: (` crores) 2013 (a) (b) (c) (d) (e) (f) (g) Interest income Dividend income Profit on redemption of mutual funds and sale of other current investments (net) Rent Gain / (Loss) on sale of fixed assets (net) Exchange gain / (loss) (net) Miscellaneous income 1039.96 149.87 (0.30 (0.63 6.17 (iii) Gratuity fund (iv) Social security and other plans for overseas employees (c) Staff welfare expenses 117 Consolidated Financial Statements .60 108.14 1157.96 413.24 21114.82) 5.23 Dividend income pertains to: Dividend from current investments (mutual funds) Dividend from other long-term investments Exchange gain / (loss) (net) includes: Loss on foreign exchange forward and currency option contracts which have been designated as Cash Flow Hedges (Refer note 42) (403.36 16.22 6.17 2012 47362.83 25) EMPLOYEE BENEFIT EXPENSES Employee benefit expenses consist of the following: (` crores) 2013 (a) (b) Salaries and incentives Contributions to (i) (ii) Provident fund and pension fund Superannuation scheme 533.74 6.21 428.94 (0.37 420.

Consolidated Financial Statements 118 .01 2414.66 366.58 817.18 40. 2013 is adjusted for the effect of additional provision (net) of ` 58.32 44.13 (0. hardware and material costs Communication expenses Travelling and conveyance expenses Rent Legal and professional fees Repairs and maintenance Electricity expenses Bad debts written-off Advances written off / (written back) (net) Provision / (write back of provision) of doubtful receivables (net) Provision for doubtful advances Recruitment and training expenses Diminution in value of investments (net) Commission and brokerage Printing and stationery Insurance Rates and taxes Entertainment Impairment of goodwill (Refer note 45) Other expenses (Refer note 46) 8701.53 409.17 460.75 968.76 42.76 108.23 191.77 475.90 574.22 44.55 101.18 687.16 6132.59 32.49 48.53 2.61 325.50 47.61 1069.18 crores (March 31.61 2219.22 346.43 crores) in domestic and certain overseas jurisdictions relating to earlier years.57 159.74 2652.42 223.49 15907.15 650.29 249.11 20909.65 1165.23 22.Notes forming part of the Consolidated Financial Statements 26) OPERATION AND OTHER EXPENSES Operation and other expenses consist of the following: (` crores) 2013 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) (n) (o) (p) (q) (r) (s) (t) (u) (v) Overseas business expenses Services rendered by business associates and others Software.33 50.28 28) Current tax for the year ended March 31.24 34.22) 54.08 213.69) 7.56 7881.37 161.24 4.19 (1.11 21.11 2012 6753.61 (i) Overseas business expenses includes: Travel expenses Employee allowances (ii) Repairs and maintenance includes: Buildings Office and computer equipment 27) FINANCE COSTS Finance costs consist of the following: (` crores) 2013 Interest expense 48.94 3763.05) (25. The impact of MAT entitlement of earlier period is ` 128.20 640.86 74.50 766.82 6.49 2012 22.91 816. 2012: ` 18.97 crores (March 31. 2012: Nil).

00 100. Ltd.00 100.12 100.00 51.00 99.00 100.00 Subsidiaries (held directly) APOnline Limited C-Edge Technologies Limited CMC Limited Diligenta Limited MP Online Limited Tata Consultancy Services Canada Inc.00 100.00 100.00 100.00 100.00 100.00 100.f.00 100. (w.00 100. (w.A. 16.00 74.00 100.00 100.00 100.C.08.00 100.A.A.00 89.00 100.00 74.Annual Report 2012-13 Notes forming part of the Consolidated Financial Statements 29) (a) Particulars of subsidiaries: Name of the Company Country of incorporation Percentage of voting power as at March 31.S.00 100.00 51.00 100.00 100. TATASOLUTION CENTER S.e.00 96.. Tata Information Technology (Shanghai) Company Limited Tata Consultancy Services (China) Co.A. Tata Consultancy Services Portugal Unipessoal Limitada TCS Inversiones Chile Limitada Tata Consultancy Services Chile S. Tata Consultancy Services Do Brasil Ltda Tata Consultancy Services De Mexico S.00 100.00 100.2011) Computational Research Laboratories Limited (Refer note 31) Computational Research Laboratories Inc.00 100. Tata Consultancy Services Malaysia Sdn Bhd Tata Consultancy Services Luxembourg S. 2012 89. TCS e-Serve Limited MahaOnline Limited Retail FullServe Limited (Refer note 31) Tata Consultancy Services Qatar S.00 100. Tata America International Corporation Tata Consultancy Services Asia Pacific Pte Ltd. Ltd.00 100.00 100.A India India India UK India Canada USA Singapore Belgium Germany Netherlands Sweden Australia Uruguay India Morocco South Africa India India India Qatar India USA USA China China China Uruguay Argentina Brazil Mexico Spain Italy Japan Malaysia Capellen (G. Tata Consultancy Services Argentina S.99 100.00 60.00 96.f.26 74.00 100.00 100. TCS Italia SRL Tata Consultancy Services Japan Ltd.00 100.00 100.00 99.00 100.A.D. TCS Financial Solutions Beijing Co. De C.00 100.2012) Subsidiaries (held indirectly) CMC Americas Inc.00 100. Tata Consultancy Services Deutschland GmbH Tata Consultancy Services Netherlands BV Tata Consultancy Services Sverige AB TCS FNS Pty Limited TCS Iberoamerica SA WTI Advanced Technology Limited Tata Consultancy Services Morocco SARL AU Tata Consultancy Services (Africa) (PTY) Ltd.12 100.00 100.00 100.00 100.00 100.00 100. 2013 89.00 51.00 100.00 100.00 Percentage of voting power as at March 31.00 100.99 100.A.12. TCS Solution Center S.e.. Tata Consultancy Services Belgium S.00 100.A..00 100.00 51.00 100.00 99.00 89. 20.00 60.00 100.00 100.00 99.26 74.00 100.00 100.00 100.63 100. Tata Consultancy Services De Espana S.00 100. de Luxembourg) Portugal Chile Chile Ecuador 119 Consolidated Financial Statements .63 100.V.00 100.

01) b) On August 16. PT Financial Network Services PT Tata Consultancy Services Indonesia Tata Consultancy Services Switzerland Ltd. The Scheme came into effect on April 1.00 100.00 100.00 100. 2013 100.00 100.00 100. 2012 100.f.Notes forming part of the Consolidated Financial Statements Name of the Company Country of incorporation Percentage of voting power as at March 31. TCS e-Serve International Limited TCS e-Serve America.00 Percentage of voting power as at March 31.e. outstandings. Diligenta 2 Limited MS CJV Investments Corporation CMC eBiz Inc.e. Inc. CRL has been amalgamated with Tata Consultancy Services Limited.00 100.03.00 100.00 100. sales tax (including deferment of sales tax).00 TCS Financial Solutions Australia Holdings Pty Limited TCS Financial Solutions Australia Pty Limited TCS Management Pty Ltd.00 100.00 60.00 100. 2012 and October 1. MGDC S. have been amalgamated with the Company with effect from April 1.03. a wholly owned subsidiary.00 100.00 100.2012) Tata Consultancy Services Osterreich GmbH (w. 30) ACQUISITIONS / DIVESTMENTS a) Revenue (post acquisition) 0.00 100.f. A.21) (0. Subsequently.00 100.00 100.00 100.00 75. Tata Consultancy Services Morocco SARL AU.00 100. benefits under income tax.00 100.00 100. Tata Consultancy Services (Thailand) Limited Tata Consultancy Services (Philippines) Inc.00 100. 2013. 2013. credits. the Company acquired 100% equity share capital of Computational Research Laboratories Limited (“CRL”) along with its subsidiary Computational Research Laboratories Inc.01 Net Loss (post acquisition) (3. liabilities.00 100.00 100.00 100. 09. 2013 and pursuant thereto all assets and debts.00 100.00 100.00 100.00 100. is in the process of being voluntarily liquidated.00 100. benefits Consolidated Financial Statements 120 . Nippon TCS Solution Center Limited (w. 2012 respectively. Computational Research Laboratories Limited is engaged in the business of conducting research and development relating to high performance computing and allowing usage of computers.00 75.00 60. 16. excise.00 100. b) Retail FullServe Limited and Computational Research Laboratories Limited – wholly owned subsidiaries of Tata Consultancy Services Limited. including providing consultation services in the field of information technology.21 0.01.C. pursuant to scheme of amalgamation sanctioned by the High Court of Judicature at Bombay vide their Order dated March 22. 2012. Tata Consultancy Services France SAS Tata Consultancy Services (South Africa) (PTY) Ltd.00 100.2012) Tata Consultancy Services Danmark ApS (w.f.00 100.00 100.00 100. 31) AMALGAMATION OF COMPANIES a) Nature of business of amalgamating companies Retail FullServe Limited is engaged in the business of providing information technology and business process outsourcing services.2012) Australia Australia Australia Indonesia Indonesia Switzerland France South Africa Thailand Philippines India USA Uruguay Mexico UK USA USA Japan Austria Denmark (b) The contribution of the subsidiaries acquired during the year is as under: Name of Subsidiary Computational Research Laboratories Limited (Refer note 30(a)) Computational Research Laboratories Inc. effective October 1. in terms of the scheme of amalgamation (Scheme) sanctioned by the High Court of Judicature at Bombay vide their Order dated March 22.e. TCS Uruguay S.. 2012.00 100. 24.02) (` crores) Net Assets (0.

2012 respectively. As stipulated in the scheme of amalgamation. 2012 respectively.52 4. have been transferred to and vested in the Company retrospectively with effect from April 1.30 4.57 3. have been taken over at their book values. 2012 and October 1.13 19.20 0.13 22.12 14. which have been transferred to the surplus in statement of profit and loss of the Company.32 5. liabilities and reserves in accordance with the terms of the Scheme at the following summarised values: (` crores) Particulars Retail FullServe Limited Computational Research Laboratories Limited October 1. the assets. the amalgamations have resulted in transfer of assets. c) The amalgamations stated above have been accounted for under the “pooling of interests” method as prescribed by Accounting Standard (AS-14) notified under Section 211(3C) of the Companies Act. Accordingly. The Company has given an undertaking to the investors of KOOH Sports Private Limited not to transfer its shareholding prior to the expiry of thirty-six months from the completion date of the investment agreement except with the prior written consent of the other parties to the agreement. The restriction is valid as at March 31. This equity investment is subject to the restriction as per terms of the contractual agreement.86 64. The difference between the amount recorded as investments of the Company and the amount of share capital of Retail FullServe Limited and Computational Research Laboratories Limited have been adjusted in the General reserve.22 crores accounted in consolidated financial statements till the appointed date of amalgamation.00 25.72) (44.85 2.43 22.37 64. 2013.26) * Includes post acquisition profits (net) of ` 23.11) (36.00 35.14 15. Since the subsidiaries amalgamated as aforesaid were wholly owned by the Company. liabilities and reserves of Retail FullServe Limited and Computational Research Laboratories Limited as at April 1. all reserves of the above mentioned subsidiaries have been transferred to the General reserve account except for balances lying in the statement of profit and loss account as at March 31.54) (103. 2012 and September 30. 1956.40 4. 121 Consolidated Financial Statements .17 28. 32) The Company has given an undertaking to the Government of Maharashtra not to divest its shareholding in MahaOnline Limited except to an affiliate.31 5.12 0. 2012 27. 2012 and October 1.65 2.49 (0. 2012 10.09 (131.23) (15.92 (159.01 163.Annual Report 2012-13 Notes forming part of the Consolidated Financial Statements for and under STPI and special economic zone registrations. no shares were exchanged to effect the amalgamation.55 200.61) (8.91) (167. Accordingly. other liabilities and provisions Total net assets acquired on amalgamation Less: Adjustment for cancellation of Company’s investment in subsidiaries Less: Transfer of balances in statement of profit and loss of amalgamated companies to the surplus in statement of profit and loss of the Company* Add: Adjustment for alignment of accounting policies Balance transferred to general reserve as at appointed date of amalgamation April 1.03) (15.00) Total Appointed date of amalgamation Assets Fixed assets (net) Deferred tax assets Unbilled revenue Trade receivables Cash and bank balances Investments MAT credit entitlement Loans and advances and other assets Less: Liabilities Borrowing Trade payables.30 4.01 9. duties and obligations of the above mentioned subsidiaries.33 4. The restriction is valid as at March 31.14 0. 2012 respectively.86 19.54 36. 2013.19 3.49) 37.26 68.

65) (0. post retirement medical benefit and pension plan.95 267.28 (3.65 (45. end of the year 722.87 146. Certain overseas subsidiaries of the Company also provide for retirement benefit plans in accordance with the local laws.70 Unfunded As at March 31.00 77.38 Consolidated Financial Statements 122 . 2013 998.60 (0.51 1. the contributions as specified under the law are paid to the Provident Fund set up as a trust by the Company and its subsidiaries or to the respective Regional Provident Fund Commissioner and the Central Provident Fund under the State Pension Scheme.59 0.93 crores) for provident fund and pension fund contributions and ` 168.96) 1237.04) 880. 2012: ` 119.18) 1.27 54.76 crores (March 31.60 0.96 crores (March 31. if any as an expense in the year it is incurred.57 (0. The Group recognised ` 533. 2013 5.57) (0.72 998.58 722.80 (1.99 601. 2013 267.02 crores) towards other foreign defined contribution plans.98 6.34 2.17 (2. The contributions payable to these plans by the Group are at rates specified in the rules of the schemes.56 0. The Gratuity plan provides for a lump sum payment to vested employees at retirement. b) Defined benefit plans The Company and its subsidiaries in India provide to the eligible employees defined benefit plans such as gratuity. The present value of the defined benefit obligation and the related current service cost were measured using the Projected Unit Credit Method.56 6.74 0.Notes forming part of the Consolidated Financial Statements 33) EMPLOYEE RETIREMENT BENEFITS a) Defined contribution plans The Company and its subsidiaries make Provident Fund.99 Unfunded As at March 31.84) (0.52 18.17 0.52 47.48 0.85 66.02 5. the Company and its subsidiaries are required to contribute a specified percentage of the payroll costs to fund the benefits.53 0.97) 16.11) 2.79 0.74 32.97 64.06 117.57 4.95) 338.59) 7. In case of Provident Fund.11 crores (March 31.88) 7.71 1. 2012: ` 413.24 32. The Group has contributed ` 248.89 19.39 (60.98 Consolidated As at March 31.74 0. 2012: ` 201.69 9. Vesting occurs upon completion of five years of service.01 (0.38 100. Under the schemes.56 6.81 66. The Company and its subsidiaries are generally liable for annual contribution and any shortfall in the fund assets based on the government specified minimum rate of return and recognises such contribution and shortfall.40 126.38 824.88 10.17 1. The measurement date used for determining retirement benefits for gratuity is March 31.22 21.70 222.05) (36. The following table set out the funded and unfunded status of the retirement benefit plans and the amounts recognised in the financial statements: (` crores) Retirement benefits Indian Funded As at March 31. death while in employment or on termination of employment of an amount equivalent to 15 to 30 days salary payable for each completed year of service or part thereof in excess of six months.09 0.73) (55.60 crores) for superannuation contributions in the statement of profit and loss. Pension Fund and Superannuation Fund contributions to defined contribution retirement benefit plans for eligible employees. 2013 1. beginning of the year Service cost Interest cost Actuarial loss/(gain) Plan participants’ contributions Exchange loss / adjustments Past service cost / (credit) Benefits paid Projected benefit obligation. 2013 i) Change in benefit obligations: Projected benefit obligation.71 Foreign Funded As at March 31.34 3.00) (18.50 0.92 0. with actuarial valuation being carried out at each balance sheet date.41) (14.

59 Unfunded As at March 31.97 64.03 1.11 45. 2013 ii) Change in plan assets: Fair value of plan assets.37) 1.29 213.17 0.09 0.65 12.67 1.39 48.67 7.91 49. end of the year Excess of (obligation over plan assets) / plan assets over obligation iii) (Accrued liability) / Excess funding 569.02) (5.34 31.11) 14.98) Consolidated As at March 31.81 15.56 6.21 (11.74 4.06 6.52 (49.Annual Report 2012-13 Notes forming part of the Consolidated Financial Statements (` crores) Retirement benefits Indian Funded As at March 31.18) 1.56) (159.89 19.05) (54.74 68.52 (12.54 (8.71) Foreign Funded As at March 31.34 31.92 0.00) (153.12 - Foreign Funded 2013 21.07 10.61 - Consolidated 2013 146.52 (301.40 126.52 732.72 123 Consolidated Financial Statements .76) (53.06 Unfunded 2013 6.76 (59.01) 148.64 (45.22 0.00 936.88 10.78 Service cost Interest on defined benefit obligation Expected return on plan assets Past service cost / (credit) Net actuarial loss / (gain) recognised during the year Net gratuity and other cost Actual return on plan assets 117.76) Unfunded As at March 31.67) (2.05) (36.59) 212. 2013 (16.59 (26.56 61.80 11.23 (257.23 57.81 (61.74 22.56 64.17) (1.38 100.65 36.69) (43.79 0.78) 1.24 108.21 125.53 11.56 0.86) (301.25 53. 2013 838.84) 1.76) (257.46 25.00) (153.23 518.41) 33.00) (18.60 3. beginning of the year Expected return on plan assets Plan participants’ contributions Employers’ contributions Exchange gain Benefits paid Actuarial gain Fair value of plan assets.99) 17.16 838.95) 13.27) 51.76 53.44 79.61 623.69 43.27 54.57 (0. 2013 (2.07) (10.71) (2.17) (1.78 7.58 21.64 10.85 66.57 4.37) 1.39 312.76 (14.04) 4.48 0. 2013 269.98) (16.29 (26.75 49.58 269.11 6.28 (4.02) (5.86) (` crores) iv) Net gratuity and other cost: Indian Funded 2013 Unfunded 2013 0.80 (0.69 9.56) (159.58 569.00 77.56 6.

17) 44.78) 4.Notes forming part of the Consolidated Financial Statements (` crores) Retirement benefits Indian Funded As at March 31. 2013 Consolidated As at March 31.25%-8.68 59.70 569.50% -5.16 838.58 269.25%-4.00% -9.50% -7. seniority.47) 31.95 56.06 882.95 56.58 (259.47 497.00% 113.64% 1. 2013 v) Category of assets: Corporate bonds Equity shares Index linked bonds Insurer managed funds Cash and bank balances Government Securities Others Total Unfunded As at March 31.07 119.08 425.0%-7.52 Foreign 2. promotion and other relevant factors such as supply and demand factors in the employment market.67 312.70% 3.63 (65.45% vi) Assumptions used in accounting for the gratuity plan Discount rate 8.05 9.83 (60.56 69. (` crores) Particulars Experience adjustment On plan liability (gain) / loss On plan asset gain Present value of benefit obligation Fair value of plan assets Excess of obligation over plan assets (net) (17.32 22.61 724.68 1.65 518. 2013 623.00% Expected rate of return on plan assets 8.00% The estimate of future salary increases considered in actuarial valuation takes into account inflation.0% 4.75 936.91 (83.60% 2.27 28.25%-7.74 52. historical results of the return on plan assets and the Company and its subsidiaries policy for plan asset management.75 623.80 4.50%-4.23 - 113.74 52.29 Indian 8.58 569.68 1.50 % .07 0.65 4.38) (19.46 642.74) 4.60%-8.07 119. The expected return on plan assets is determined considering several applicable factors mainly the composition of the plan assets held.93 16. 2013 Foreign Funded As at March 31.68 59.38 359.00% 1.00%-9.21 436.27 602.70% 8.56 69.75) Indian 2013 2012 2011 2010 2009 Consolidated Financial Statements 124 . assessed risks of asset management.44 585.46 18.08 623.51 569.50% Salary escalation rate 4.01) 5.27 28.55 3. 2013 Unfunded As at March 31.00% 2.23 (155.05 6.3.89 17.39 22.15 0.89 17.

83 17898.96 13917.46 (6. comprising domestic component of ` 177.74 354.48 986.14 1178.39) 2012 (0.Annual Report 2012-13 Notes forming part of the Consolidated Financial Statements Particulars Experience adjustment On plan liability (gain)/loss On plan asset gain/(loss) Present value of benefit obligation Fair value of plan assets Excess of obligation over plan assets (net) Foreign 2011 (3.31 10413. life science and healthcare.31 (17. products. Year ended March 31.17 18089.31 4014.48 48893. 2014.52 21062.50 13495.73 1889.91 1948.65 6493. manufacturing companies.34 16911.64 1742.23 428. Media and Entertainment Others Total (` crores) Revenue Segment result Unallocable expenses (net) Operating income Other income (net) Profit before tax Tax expense Profit before minority interest Minority interest Profit for the year 7539.16 273. travel.65 (8.07 985.68 269.29 1362.54 crores and foreign component of ` 20.14 Telecom. Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. etc. All other expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses. Manufacturing Financial Services and Insurance 27146. Hi-Tech industry practice. media and entertainment and others such as energy.22 3800.49) 2009 4. Geographic segments of the Group are Americas (including Canada and South American countries).80 155.52 crores.57 3202.54 8014.81 3991. 2013.38 109.78 6204. s-Governance.73 13923.38) 4.69 11871.06 crores to gratuity funds for the year ended March 31.89 Retail and Consumer Packaged Goods 8401.33 222.22 213.57) 2013 (2. Business segments are primarily financial services comprising of customers providing banking.81 62989. Fixed assets that are used interchangeably among segments are not allocated to primary and secondary segments.12 14313.71 137.97 312.62 (22.74) 0.62 818.17) 159.86) (12. Geographical revenue are allocated based on the location of the customer. companies in telecommunication.71 14686.49 125 Consolidated Financial Statements . Expenses which are not directly identifiable to a specific segment have been allocated on the basis of associated revenues of the segment and manpower efforts. Previous year figures are in italics 34) SEGMENT REPORTING The Group has identified business segments (industry practice) as its primary segment and geographic segments as its secondary segment. 2013 Particulars Business Segments Banking.58 (42.11) 13. Revenue and expenses directly attributable to segments are reported under each reportable segment.04 3399.02) 172.45 158.09) The expected contributions are based on the same assumptions used to measure Group’s gratuity obligations as at March 31. The Group is expected to contribute ` 198.39) 2010 (10. finance and insurance services. All other assets and liabilities are disclosed as unallocable. companies in retail and consumer packaged goods industries. India and Others.25 5215.69 10523. Europe. resources and utilities.22 5954.86 14075. transportation and hospitality.29 (4.47 2580.

60 191. 2013 Other information Capital expenditure (allocable) Capital expenditure (unallocable) Depreciation (allocable) Depreciation (unallocable) Other significant non cash expenses (allocable) Other significant non cash expenses (net) (unallocable) 8.02 23.49 221.55 12926.71 52267.20 2.28 169.48 116.26 Telecom.18 11192. 2013 9959.94 10344.98 Business Segments Manufacturing Retail and Consumer Packaged Goods 2142.30 1108.70 23.45 95.27 8.92 3. Financial Services and Insurance Segment assets Unallocable assets Total assets Segment liabilities Unallocable liabilities Total liabilities 1319.77 5897.57 121.81 24533.81 4.05 (0.55 141.49 2581.12 856. 2013 Particulars Banking.81 16734.82 The following geographic segments individually contribute 10 percent or more of the Group’s revenue or segment assets: Consolidated Financial Statements 126 .43 0.49 5139.Notes forming part of the Consolidated Financial Statements As at March 31. 2013 35327.55 8344.95 2035.53 4890.35 796.22) (` crores) Geographic segments Americas Europe India Previous year figures are in italics.59 2064.24 4202.90 4.83 938.23 9156.36 12381.97 109.79 2502.86 92.22 6035.51 27569.85 120.71 24.14 17.22 41330.88 46.39 9518.27 11.26 163.28 4504.35 6883.50 21268.27 948.31 59.29 Segment assets as at March 31.57 1818.21 5229.12 17. Media and Entertainment 2527.08 117.55 122. Revenue for the year ended March 31.38 Others Total (` crores) 1615.81 11364.87 100.49 Year ended March 31.11 55.72 20061.89 2.86 718.78 27733.08 88.67 1472.

IMITED s 4ATA.IMITEDUPTO s 4ATA!DVANCED-ATERIALS.IMITED s 4ATA(OUSING$EVELOPMENT#OMPANY.IMITED s 4ATA"USINESS3UPPORT3ERVICES.IMITED s 4ATA4ELESERVICES-AHARASHTRA .IMITED s 4ATA!)''ENERAL)NSURANCE#OMPANY.IMITED s 4ATA#APITAL&INANCIAL3ERVICES.IMITED s 4ATA!SSET-ANAGEMENT.IMITED s 0ANATONE&INVEST.IMITED s 4ATA)NTERNATIONAL3INGAPORE0TE.IMITED s 4ATA.IMITEDWEF s s s s -R.OCKHEED-ARTIN!EROSTRUCTURES.IMITED s 4ATA)NVESTMENT#ORPORATION.IMITED s E .#HANDRASEKARAN -R3-AHALINGAMUPTO -R2AJESH'OPINATHANWEF -R0HIROZ6ANDREVALAUPTO III) Key Management Personnel 127 Consolidated Financial Statements .IMITED s 4ATA)NTERACTIVE3YSTEMS'MB( s 4ATA!FRICA(OLDINGS3! 0ROPRIETARY .OVA)NTEGRATED3YSTEMS.IMITED s 4ATA#ONSULTING%NGINEERS.IMITED s 4ATA!)!.ETWORKS.IMITED s 4ATA#APITAL(OUSING&INANCE.IMITEDFORMERLY4ATA!EROSTRUCTURES.IMITED s 4ATA:AMBIA.IMITEDUPTO s 6)/-.IMITEDUPTO s 4ATA2EALTY!ND)NFRASTRUCTURE.IMITED s 4ATA)NTERNATIONAL.IMITED s 4ATA3ECURITIES.IMITED s .IMITEDFORMERLY4ATA!)'.IMITEDUPTO s 4ATA)NDUSTRIES.IMITED s 4#4RAVEL!ND3ERVICES.IMITED s 44(OLDINGS3ERVICES.IFE)NSURANCE#OMPANY.IMITED s 4ATA!UTOCOMP3YSTEMS.IMITED s 4ATA3KY.XT&INANCIALS.IMITED s 4!4!!FRICA(OLDINGS+ENYA .Annual Report 2012-13 Notes forming part of the Consolidated Financial Statements 35) RELATED PARTY DISCLOSURES A) Related parties and their relationship I) Holding Company Tata Sons Limited II) Fellow subsidiaries with whom the Group has transactions s )NlNITI2ETAIL.IMITED s $RIVE)NDIA%NTERPRISE3OLUTIONS.IMITED s 4ATA4ELESERVICES.IMITED s --0-OBI7ALLET0AYMENT3YSTEMS.IMITED s 4ATA#APITAL.IFE)NSURANCE#OMPANY.

Notes forming part of the Consolidated Financial Statements
B) Transactions with related parties for the year ended March 31, 2013 (` crores) Particulars Holding Company Fellow Key Subsidiaries Management Personnel and their relatives 57.88 25.33 0.02 3.18 2.00 180.00 185.01 280.00 185.00 5.00 492.36 471.24 37.08 33.37 0.63 0.40 0.08 0.02 364.31 300.61 4.32 4.19 0.24 (5.08) 0.35 3.90 4.79 3.50 0.06 0.08 0.63 0.43 15.80 11.65 Total

Brand equity contribution Purchase of fixed assets Loans and advances given Loans and advances repaid Inter-corporate deposits placed Inter-corporate deposits matured Purchase of investments Redemption of investments Revenue Interest income Dividend income Other income Purchase of goods, services and facilities (including reimbursement) Rent expense (Write back of provision) / provision for doubtful receivables, advances (net) Bad debts written-off Dividend paid on equity shares Dividend on redeemable preference shares paid Remuneration

109.57 78.55 0.01 0.24 163.92 333.33 333.34 0.37 1.21 98.17 87.60 0.78 0.70 0.86 0.74 (0.10) 0.10 3608.63 2453.82 22.00 11.00 -

109.57 78.55 57.88 25.33 0.03 3.42 2.00 180.00 185.01 280.00 185.00 163.92 338.33 333.34 492.73 472.45 135.25 120.97 0.63 0.40 0.08 0.02 365.09 301.31 5.24 5.01 0.24 (5.18) 0.35 4.00 3614.05 2457.75 22.00 11.00 15.80 11.65

Consolidated Financial Statements

128

Annual Report 2012-13

Notes forming part of the Consolidated Financial Statements
C) Balances with related parties as at March 31, 2013 (` crores) Holding Company Fellow Key Subsidiaries Management Personnel and their relatives 250.33 340.75 33.83 28.33 200.00 200.00 0.01 Total

Particulars

Trade receivables, Unbilled revenue, Loans and advances, Other assets (net) Trade payables, Income received in advance, Advances from customers Investment in debentures Previous year figures are in italics. D)

159.75 101.88 110.33 80.43 767.43 778.58

410.08 442.64 144.16 108.76 967.43 978.58

Disclosure of material transactions / balances with related parties (` crores) 2013 Purchase of fixed assets Tata Consulting Engineers Limited Tata Realty And Infrastructure Limited Loans and advances given Tata Sons Limited Tata AIG General Insurance Company Limited Tata Teleservices (Maharashtra) Limited Loans and advances repaid Tata Teleservices Limited Tata Autocomp Systems Limited Inter-corporate deposits placed Tata Realty And Infrastructure Limited Tata Autocomp Systems Limited Tata Capital Limited Inter-corporate deposits matured Tata Sky Limited Tata Autocomp Systems Limited Tata Realty And Infrastructure Limited Tata Capital Limited Revenue Tata Teleservices Limited Tata Teleservices (Maharashtra) Limited Interest income Tata Sons Limited Panatone Finvest Limited Purchase of goods, services and facilities (including reimbursement) Tata Teleservices Limited TC Travel And Services Limited 44(OLDINGS3ERVICES,IMITED 22.66 34.77 2.34 0.80 30.00 150.00 60.00 70.00 150.00 269.45 51.54 98.17 19.61 44.30 34.50 239.80 2012 10.68 13.16 0.01 0.01 0.01 2.00 120.00 30.00 40.00 120.00 309.65 60.28 87.60 17.50 39.97 28.75 187.01

129

Consolidated Financial Statements

Notes forming part of the Consolidated Financial Statements
(` crores) 2013 Rent expense Tata Sons Limited Tata Limited Tata Africa Holdings (SA) (Proprietary) Limited (Write back of provision) / provision for doubtful receivables, advances (net) VIOM Networks Limited Tata Teleservices Limited TATA Africa Holdings (Kenya) Limited Nova Integrated Systems Limited TC Travel And Services Limited Tata Sky Ltd Tata AIA Life Insurance Company Limited (formerly Tata AIG Life Insurance Company Limited) Bad debts written-off Tata AIA Life Insurance Company Limited (formerly Tata AIG Life Insurance Company Limited) Tata Teleservices Limited Tata Teleservices (Maharashtra) Limited Remuneration to Key Management Personnel Mr. N. Chandrasekaran Mr. S. Mahalingam Trade receivables, Unbilled revenue, Loans and advances, Other assets (net) Tata Sons Limited Tata Teleservices Limited Tata Realty And Infrastructure Limited Trade payables, Income received in advance, Advances from customers Tata Sons Limited Tata Teleservices Limited Investment In debentures Tata Sons Limited Panatone Finvest Limited 36) OBLIGATION TOWARDS OPERATING LEASE Non-cancellable operating lease obligation Not later than one year Later than one year but not later than five years Later than five years Total As at March 31, 2013 675.30 1850.00 1016.77 3542.07 0.86 1.05 2.92 (0.22) (0.12) 0.04 0.02 0.08 0.49 (0.08) 2012 0.74 1.05 2.84 0.35 (5.12) (0.25) (0.01) (0.08)

0.01 0.33 11.69 4.02 159.75 63.50 97.01 110.33 16.14 767.43 200.00

0.02 3.86 8.01 3.53 101.88 77.15 170.03 80.43 16.99 778.58 200.00

(` crores) As at March 31, 2012 532.33 1381.72 888.67 2802.72

Rental expenses of ` 611.61 crores (March 31, 2012: ` 485.26 crores) in respect of obligation under non-cancellable operating leases and ` 553.56 crores (March 31, 2012: ` 482.96 crores) in respect of cancellable operating leases have been charged to the statement of profit and loss.

Consolidated Financial Statements

130

41 crores (March 31.96 2.46 67.17 0.59 43. 131 Consolidated Financial Statements .58 234.66 106. 2013 0.03 0. 2012 1.05 60.23 234.52 63.34 Particulars (i) Gross investment Not later than one year Later than one year but not later than five years Later than five years (ii) Total Present value of minimum lease payments receivable Not later than one year Later than one year but not later than five years Later than five years Total Add: Unearned finance income Total b) Group as lessee Obligations towards finance lease Assets acquired under finance lease i) Minimum lease payments: Not later than one year Later than one year but not later than five years Later than five years Total ii) Present value of minimum lease payments: Not later than one year Later than one year but not later than five years Later than five years Total Add: Future finance charges Total 38) RECEIVABLES UNDER SUB LEASES Sub lease receivables Not later than one year Later than one year but not later than five years Later than five years Total (` crores) As at March 31.07 As at March 31.07 9. 2013 is ` 16.34 1.38 0.27 80. 2012 23.56 66.33 20.78 The total amount recognised in the statement of profit and loss for the year ended March 31. 2013 36.96 0.17 2.80 79.34 52.87 149.94 crores). 2012: ` 16.39 45.93 0.Annual Report 2012-13 Notes forming part of the Consolidated Financial Statements 37) FINANCE LEASE a) Group as lessor As at March 31.40 210.32 As at March 31. 2012 12.27 121.38 130.93 0.96 (` crores) As at March 31.33 (` crores) As at March 31. 2013 15.03 85.93 2.24 0.96 0.83 8.66 88.49 84.67 210.

78 Fair Value (` crores) No.86 0. 2012: ` 321. 2012 Notional amount of forward contracts (million) 288. of Contracts March 31. 2012: ` 651.86 crores (GBP 60 million) (March 31. not included above. its acquired subsidiary.00 (` crores) As at March 31.16 1384. These contracts are for a period between one day and eight years.71 0.74 crores (March 31. The Group has following outstanding derivative instruments as at March 31. The counter party is generally a bank. of Contracts March 31.00 (` crores) 2012 10413.25) (2.14 Fair Value (` crores) U.54 200. 2012 113. amounts received by the subsidiary from tax authorities as refund against taxes paid aggregating ` 347.49 25.15 493.57 10387.S. 2013: i) The following are outstanding foreign exchange forward contracts. 2012: ` 330. based on legal opinion.92 195.10 Profit for the year Less: Dividend on preference shares (including dividend tax) Amount available for equity shareholders Weighted average number of equity shares Earning per share basic and diluted (`) Face value per equity share (`) 40) CONTINGENT LIABILITIES Particulars Claims against the Group not acknowledged as debt Income tax demands (See note (a) below) Indirect tax demands Guarantees given by the Group (See note (b) below) Other contingencies Notes: a) In respect of tax contingencies of ` 384.23 13895.68 crores).Notes forming part of the Consolidated Financial Statements 39) EARNINGS PER SHARE [EPS] 2013 13917. which is to be adjusted to the purchase price consideration. 2012: ` 8.40) Consolidated Financial Statements 132 .10 crores).72.99 1.07 1. b) The Group has provided guarantees aggregating ` 493.58 0. the Company is entitled to an indemnification from the seller of TCS e-Serve Limited. concludes that the subsidiary is in compliance with the related statutory requirements.17 2763.58 crores) (GBP 80. c) The Group has examined the social security and tax aspects of contracts with legal entities which provide services to an overseas subsidiary and.08 195.21) (0.20. in accordance with its risk management policies and procedures.996 53.00 million) to third parties on behalf of its subsidiary Diligenta Limited. 2013 Notional amount of forward contracts (million) 22. 42) DERIVATIVE FINANCIAL INSTRUMENTS The Company and its subsidiaries.59 crores (March 31. which have been designated as Cash Flow Hedges as at: Foreign Currency No. Dollar Sterling Pound Australian Dollar 4 2 8 (11.43) 44 26 44 (98. which is to be adjusted to the purchase price consideration. The Group does not expect any outflow of resources in respect of the above.17 crores (March 31.07 crores).34 157. 2013 120.31 22.38 11.85 crores).20. 2012: ` 1792.79 2.01 9.66 As at March 31.72. b) The Company is required to pay to the seller of TCS e-Serve Limited. c) The Company has a purchase commitment towards India Innovation Fund for the uncalled amount of balance ` 47389.19) (5.70) (7.85 crores (March 31.56 per unit for 1000 units aggregating ` 4. 41) CAPITAL AND OTHER COMMITMENTS a) Estimated amount of contracts remaining be executed on capital account and not provided for (net of advances) ` 3406.996 70. enter into foreign exchange forward and currency option contracts to manage its exposure in foreign exchange rates.39 651.

48 crores) have been considered as non-cash transactions in the cash flow statement.00 217.IMITEDS3%:UNDERTAKINGWITHTHE#OMPANY4HEAPPOINTEDDATEFOR the above proposed scheme is April 1.18 crores due to the deterioration of the financial position and financial performance of a subsidiary in the banking. 2012: ` 8506.30 crores).16 (133. 10 and 26.52 crores (March 31. 2013. 2013. 2013. The movement in Hedging reserve during the year ended March 31.94 crores for the year ended March 31.18 crores (March 31.31 crores recognised in Hedging reserve as of March 31. 43) Increase in payables and finance lease obligation in respect of purchase of fixed assets amounting to ` 133.66 - 81 33 21 6 29. 2013 (March 31.98 (3. 48) The Board of Directors at their meeting held on October 19. 2012 62. 2012 : loss of ` 95.63 crores (USD 29.94 crores as at March 31.62) 62. Exchange gain of ` 271. 2012: ` 94.03 79.15 crores (March 31.75 million).44 crores) on foreign exchange forward and currency option contracts for the year ended March 31. 2012 include an impairment loss on goodwill on consolidation of ` 21.00 102. 2012 Notional amount of currency option contracts (million) 2185. 49) Figures pertaining to the subsidiary companies have been reclassified wherever necessary to bring them in line with the Group financial statements. Dollar Sterling Pound Euro Australian dollar 56 12 15 - (0. 2013 (increase in March 31.70 crores) was incurred during the year.59 15. 45) Operation and other expenses for the year ended March 31. 2012: ` 1.73 (762.09) 37. 46) On February 22.80) 6.00 Fair Value (` crores) No.37 crores) whose fair value showed a gain of ` 51. respectively. have been recognised in the statement of profit and loss. the Group has outstanding foreign exchange forward and currency option contracts with notional amount aggregating ` 10665. 2012: ` 143. small and medium enterprises ` 6.00 30. is expected to be reclassified to the statement of profit and loss by March 31. 2013 Balance at the beginning of the year Changes in the fair value of effective portion of discontinued / matured cash flow hedges during the year Losses transferred to statement of profit and loss on occurrence of forecasted hedge transactions Change in the fair value of effective portion of outstanding cash flow hedges Amount transferred to minority interest during the year Balance at the end of the year (133. for derivatives designated as Cash Flow Hedges is as follows: (` crores) Year ended March 31.98 crores (March 31.80) 46. of Contracts March 31.49 (154. as at: Foreign Currency No.00 Fair Value (` crores) U. 47) Trade payables include payable to micro.11 Year ended March 31. a class action suit filed in the United States of America Court relating to payments to employees on deputation. 2014. The amount of settlement has been included in ‘other current liabilities’ and ‘Other expenses’ vide note no.00 123. the Company entered into an agreement to settle for a sum of ` 161. 2013. 2012 : exchange loss of ` 213. 133 Consolidated Financial Statements .99 65. 44) Research and development expenditure (including capital expenditure) aggregating ` 164. The Court has granted preliminary approval to the settlement agreement.09) In addition to the above Cash Flow Hedges.34 Net gain on derivative instruments of ` 27.66 18. financial services and insurance segment. of Contracts March 31.64 3.56 14.50 210. 2013 Notional amount of currency option contracts (million) 1150.S.Annual Report 2012-13 Notes forming part of the Consolidated Financial Statements ii) The following are outstanding foreign currency option contracts. 2013. which have been designated as Cash Flow Hedges.67) 715. 2012 have accorded consent for the merger of TCS e-Serve Limited TOGETHERWITHTHEDEMERGEROF4#3E 3ERVE)NTERNATIONAL.43 crores). 50) Previous years’ figures have been recast / restated to conform to the classification of the current year.

Unconsolidated Financial Statements .

We conducted our audit in accordance with the Standards on Auditing issued by the Institute of Chartered Accountants of India. whether due to fraud or error. Opinion In our opinion and to the best of our information and according to the explanations given to us. implementation and maintenance of internal controls relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatements. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Management. The procedures selected depend on the auditor’s judgment.Annual Report 2012-13 INDEPENDENT AUDITORS’ REPORT ON FINANCIAL STATEMENTS TO THE MEMBERS OF TATA CONSULTANCY SERVICES LIMITED Report on the Financial Statements We have audited the accompanying financial statements of TATA CONSULTANCY SERVICES LIMITED (the “Company”). Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements. As required by the Companies (Auditor’s Report) Order. 2013. whether due to fraud or error. the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: (a) in the case of the Balance Sheet. the auditor considers internal control relevant to the Company’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. Auditors’ Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in Section 211(3C) of the Companies Act. of the profit of the Company for the year ended on that date. 1956 (the “Act”) and in accordance with the accounting principles generally accepted in India. and (c) in the case of the Cash Flow Statement. but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. Report on Other Legal and Regulatory Requirements 1. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 2003 (the “Order”) issued by the Central Government in terms of Section 227(4A) of the Act. (b) in the case of the Statement of Profit and Loss. and a summary of the significant accounting policies and other explanatory information. the Statement of Profit and Loss and the Cash Flow Statement for the year then ended. 2013. of the state of affairs of the Company as at March 31. of the cash flows of the Company for the year ended on that date. In making those risk assessments. This responsibility includes the design. we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order. Management’s Responsibility for the Financial Statements The Company’s Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position. as well as evaluating the overall presentation of the financial statements. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. including the assessment of the risks of material misstatement of the financial statements. 134 Unconsolidated Financial Statements . which comprise the Balance Sheet as at March 31.

none of the directors is disqualified as on March 31. Ramesh (Partner) (Membership No. and the Cash Flow Statement dealt with by this Report are in agreement with the books of account. (c) The Balance Sheet. 2013 Unconsolidated Financial Statements 135 . (b) In our opinion. (e) On the basis of the written representations received from the directors as on March 31. proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books. For DELOITTE HASKINS & SELLS Chartered Accountants (Firm Registration No. the Statement of Profit and Loss. 2013 taken on record by the Board of Directors.2. 117366W) P. we report that: (a) We have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit. the Statement of Profit and Loss. the Balance Sheet. April 17. 70928) Mumbai. 2013 from being appointed as a director in terms of Section 274(1)(g) of the Act.R. As required by Section 227(3) of the Act. (d) In our opinion. and the Cash Flow Statement comply with the Accounting Standards referred to in Section 211(3C) of the Act.

Therefore.Annual Report 2012-13 ANNEXURE TO THE INDEPENDENT AUDITORS’ REPORT (Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date) 1. Investor Education and Protection Fund. the transactions have been made at prices which are prima facie reasonable having regard to the prevailing market prices at the relevant time. 5. According to the information and explanation given to us. do not constitute a substantial part of the fixed assets of the Company and such disposal has. Wealth Tax. 4. In our opinion and according to the information and explanations given to us. In our opinion and according to the information and explanations given to us. Sales Tax. the inventories were physically verified during the year by the Management at reasonable intervals. the Company has maintained proper records of its inventories and no material discrepancies were noticed on physical verification. 2013 for a period of more than six months from the date they became payable. 2011 prescribed by the Central Government under Section 209(1)(d) of the Act and are of the opinion that. (b) There were no undisputed amounts payable in respect of Provident Fund. Customs Duty. Excise Duty. provides for physical verification of the fixed assets at reasonable intervals. in our opinion. (c) In our opinion and according to the information and explanations given to us. 9. Service Tax. Service Tax. 6. no material discrepancies were noticed on such verification. 2. Investor Education and Protection Fund. In respect of the Company’s fixed assets: (a) The Company has maintained proper records showing full particulars. in respect of statutory dues: 136 Unconsolidated Financial Statements . the Company has not accepted deposits from the public during the year. in our opinion. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Accounting Records) Rules. Custom Duty. Cess and other material statutory dues applicable to it with the appropriate authorities. not affected the going concern status of the Company. however. firms or other parties covered in the Register maintained under Section 301 of the Act. (b) Where each of such transaction is in excess of ` 5 lakhs in respect of any party. the prescribed cost records have been maintained. (c) 3. According to the information and explanations given to us. the provisions of the clause 4 (vi) of the Order are not applicable to the Company. secured or unsecured. prima facie. Income Tax. (b) In our opinion and according to the information and explanation given to us. to / from companies. clause(xiii) of paragraph 4 of the Order is not applicable to the Company. Wealth Tax. Cess and other material statutory dues in arrears as at March 31. including Provident Fund. The Company has neither granted nor taken any loans. in our opinion. including quantitative details and situation of fixed assets. (b) The fixed assets were physically verified during the year by the Management in accordance with a regular programme of verification which. there is an adequate internal control system commensurate with the size of the Company and the nature of its business with regard to purchases of inventory and fixed assets and the sale of goods and services. (a) The Company has generally been regular in depositing undisputed statutory dues. 10. We have. the procedures of physical verification of inventories followed by the Management were reasonable and adequate in relation to the size of the Company and the nature of its business. Excise Duty. In respect of the Company’s inventories: (a) As explained to us. having regard to the explanations that some of the items purchased are of special nature and suitable alternative sources are not readily available for obtaining comparable quotations. we have not observed any major weakness in such internal control system. Sales Tax. In respect of contracts or arrangements entered in the Register maintained in pursuance of Section 301 of the Act. In our opinion. 8. not made a detailed examination of the records with a view to determine whether they are accurate or complete. the internal audit functions carried out during the year by an external agency appointed by the Management have been commensurate with the size of the Company and the nature of its business. 7. Employees’ State Insurance. During the course of our audit. Having regard to the nature of the Company’s business / activities during the year. Income Tax. Employees’ State Insurance. The fixed assets disposed off during the year. to the best of our knowledge and belief and according to the information and explanations given to us: (a) The particulars of contracts or arrangements referred to in Section 301 that needed to be entered in the Register maintained under the said Section have been so entered.

the Company has not raised any money by way of public issue. 13.33 629. 2007–08.02 0. the Company did not have any amount outstanding to financial institutions or debenture holders. Further.93 0.57 Service Tax Income Tax There were no dues of Wealth Tax. In our opinion and according to the information and explanations given to us. In our opinion and according to the information and explanations given to us. 11. In our opinion and according to the information and explanations given to us. 2002–03. Customs Duty.term investment.41 0. In our opinion and according to the information and explanations given to us. 2009–10 2001–02. Excise Duty and Cess which have not been deposited as at March 31. 2008–09 High Court Tribunal Deputy Commissioner Commissioner of Sales Tax Joint Commissioner Assistant Commissioner Additional Commissioner Appellate Tribunal Appellate Tribunal Commissioner of Income Tax (Appeals) Amount (` crores) 16. the Company has not made preferential allotment of equity shares to parties and companies covered in the register maintained under Section 301 of the Act. the provisions of clause 4(xiv) of the Order are not applicable to the Company. 2006–07. securities and debentures. 14. 2005–06. 21.04 8. 2005–06. 2004–05.50 75. the Company has not defaulted in repayment of dues to a bank. During the year covered by our report. 2005–06. 2013 on account of disputes. The Company has not incurred cash losses during the financial year covered by our audit and in the immediately preceding financial year. in our opinion and according to information and explanations given to us. debentures and other securities. The Company does not have accumulated losses. 2006–07. 2003-04. Service Tax and Income Tax which have not been deposited as at March 31. 117366W) P. 19. 2004–05.R. 2008–09. 2008–09 2001–02. To the best of our knowledge and belief and according to the information and explanations given to us. and on an overall examination of the Balance Sheet of the Company. In our opinion and according to the information and explanations given to us. we report that funds raised on short-term basis have prima facie not been used during the year for long. 2003–04. the Company has not issued any secured debentures. 2006-07 2007–08. during the year covered by our report. having regard to the fact that the subsidiaries are wholly owned the terms and conditions of the guarantee given by the Company for loans taken by the subsidiaries from banks are not prima facie prejudicial to the interest of the Company. 2009-10 2002–03. 70928) Mumbai.06 6. 2008-09 2005–06 2007–08. 2007–08 2007–08.(c) Details of dues of Sales Tax. 12.41 7. 2013 on account of disputes are given below: Particulars Period to which the amount relates Forum where the dispute is pending Sales Tax 2001–02. 2005–06. 2003–04. Therefore. 2007–08. For DELOITTE HASKINS & SELLS Chartered Accountants (Firm Registration No. 15. 20. 16. the term loan has been applied by the Company during the year for the purpose for which it was obtained. 2013 Unconsolidated Financial Statements 137 .67 0. 17. 2009-10 2002–03. 2004–05. during the year covered by our audit. April 17. 18. According to the information and explanations given to us. According to the information and explanations given to us. 2008-09 2005–06. the Company has not granted loans and advances on the basis of security by way of pledge of shares. the Company is not dealing in shares. no fraud by the Company and no material fraud on the Company has been noticed or reported during the year. Ramesh (Partner) (Membership No. In our opinion and according to the information and explanations given to us.

10 168.term borrowings Deferred tax liabilities (net) Other long .current investments Deferred tax assets (net) Long .91 43012.56 4389. Ron Sommer Director Ishaat Hussain Director Suprakash Mukhopadhyay Company Secretary Mumbai.91 1598.16 51. 2013 138 Unconsolidated Financial Statements .81 5 6(a) 7 8 Current liabilities (a) Short .term loans and advances Other non .46 1399. Thyagarajan Director Dr.term borrowings (b) Trade payables (c) Other current liabilities (d) Short . Ramesh Partner Dr.50 348.35 11202. 1-50 For and on behalf of the Board As per our report attached For Deloitte Haskins & Sells Chartered Accountants Cyrus Mistry Chairman Aman Mehta Director P. 2013 S.06 139.72 32266.65 6. ASSETS Non . Vijay Kelkar Director O.59 154.current liabilities Long .14 9676. EQUITY AND LIABILITIES Shareholders’ funds (a) Share capital (b) Reserves and surplus Non (a) (b) (c) (d) .78 566.74 4332.88 34258.47 9107.53 32562.48 682.71 3896.20 19503.07 1649.52 772. Christensen Director Phiroz Vandrevala Director Rajesh Gopinathan Chief Financial Officer Mumbai.14 1567.16 4911.23 4630.Annual Report 2012-13 Balance Sheet as at March 31.93 541. R.01 8835. 2013 (` crores) Note I. 2013 As at March 31.82 5463. 2012 3 4 295.13 5975.term loans and advances (g) Other current assets TOTAL NOTES FORMING PART OF THE FINANCIAL STATEMENTS 16 17 18 19 20 21 22 III.32 4054.14 295.49 251.term provisions As at March 31.48 34258.81 13 6(b) 14 15 Current assets (a) Current investments (b) Inventories (c) Unbilled revenue (d) Trade receivables (e) Cash and bank balances (f) Short . April 17.70 2847.10 197.74 388.87 269.term provisions TOTAL II.73 148.current assets 9 10 11 12 5059.14 4012. April 17. Chandrasekaran CEO and Managing Director Prof.85 6868. P.88 17719.21 1881. Bhatt Director N.80 1763.34 2303.63 96.44 5147.02 3528.48 44.72 3280.72 24560.64 43012.term liabilities Long .04 2172.41 16538.91 24856. Clayton M.25 83. Ramadorai Vice Chairman V.current assets (a) Fixed assets (i) Tangible assets (ii) Intangible assets (iii) Capital work-in-progress (b) (c) (d) (e) Non .98 80.23 118.34 23508.33 4.81 2636.

95 195. Chandrasekaran CEO and Managing Director Prof.23 2685.84 2865. Ramesh Partner Dr.72. 2013 For and on behalf of the Board S.41 TOTAL EXPENSES IV. 35 65.Statement of Profit and Loss for the year ended March 31.14 2230. R. II.83 16. P. NOTES FORMING PART OF THE FINANCIAL STATEMENTS 1-50 As per our report attached For Deloitte Haskins & Sells Chartered Accountants Cyrus Mistry Chairman Aman Mehta Director P.58) 2916. PROFIT FOR THE YEAR Earnings per equity share: .35 15703.Basic and diluted (`) Weighted average number of equity shares (face value of ` 1 each) 12786.40 688. Expenses: (a) (b) (c) (d) Employee benefit expenses Operation and other expenses Finance costs Depreciation and amortisation expense 25 26 27 12 17081.98 VI. Vijay Kelkar Director O.996 55.08 13366.02 (324.72 17038.10) 2390.996 VIII.34 VII. Ron Sommer Director Ishaat Hussain Director Suprakash Mukhopadhyay Company Secretary Mumbai.33 23 24 2013 48426. April 17.22 195.18 13572.72. Revenue from operations Other income (net) TOTAL REVENUE III.20.15 30.39 50656. Bhatt Director N. Clayton M.86 34953. 2013 (` crores) Note I. Christensen Director Phiroz Vandrevala Director Rajesh Gopinathan Chief Financial Officer Mumbai. V.35 10975. 2013 Unconsolidated Financial Statements 139 . PROFIT BEFORE TAX Tax expense: (a) (b) (c) Current tax Deferred tax MAT credit entitlement 28 3197. April 17.20. Ramadorai Vice Chairman V.17 27423.68 13145.40 44. Thyagarajan Director Dr.62 802.18 40789.53 2012 38104.38 (38.93) (436.

R.62 (0.24) 80.18 802.13) 2536.00 3280.30 (163.81) (16.41 12795.60) 342.20) (1289.12) 515.02) (3.59 (2.23 (717.16) (26.20) (735.42 (231.23) 14571.95 (13.91 6469.72) 2.68) 323.term bank deposits Cash and Bank balances at the end of the year NOTES FORMING PART OF THE FINANCIAL STATEMENTS 2013 15703. 2013 140 Unconsolidated Financial Statements .69 (3482.66) (65.02) (20.23) 577.51) (404.53 3719.16 (` crores) 2012 13366.65 (0.83) (470.48 655.25) 1548.31 (23.61) (2116.17 34.22) (289. 2013 Note I.16 (1.57 433.85 10.64 17.95 (2252. III.86 15.33 688. Ramadorai Vice Chairman V.36 (1. Clayton M.18 31.25) (3879. As per our report attached For Deloitte Haskins & Sells Chartered Accountants Cyrus Mistry Chairman Aman Mehta Director P.80) 16.02 (5.80 (2979.16) 9156.97 8.44 1. Chandrasekaran CEO and Managing Director Prof.80) 18. other liabilities and provisions Cash generated from operations Taxes paid Net cash provided by operating activites CASH FLOWS FROM INVESTING ACTIVITIES Purchase of fixed assets Proceeds from sale of fixed assets Acquisition of subsidiaries Purchase of trade investments Proceeds from sale / transfer of trade investments Purchase of mutual funds and other investments Proceeds from redemption of mutual funds and sale of other investments Advance towards investment Loans repaid by subsidiaries Inter-corporate deposits placed Inter-corporate deposits matured Fixed deposit placed with banks having original maturity over three months Fixed deposit placed with banks matured having original maturity over three months Dividend received from subsidiaries (including exchange gain) Dividend received from other investments Interest received Net cash (used in) / provided by investing activities CASH FLOWS FROM FINANCING ACTIVITIES Repayment of long term borrowings Short term borrowings (net) Repayment of Inter-corporate deposits Dividend paid.00) (5703.11 (3638.38 (13565.02 318. April 17.49) 817.16) (3897.20) 927.75 (3060. 20 20 1-50 IV.05) 16.80) 5.57) 1. Vijay Kelkar Director O. April 17.60 356. Thyagarajan Director Dr.55 (3294.68 (1110.12) (4311.57) (12. Ramesh Partner Dr.00 (22054.07 II.98) (1.92) 3174.78 4054.12 (3091.42) (5655. 2013 For and on behalf of the Board S.89 2.53 1.00 1109.33) 149.97 3. P. Bhatt Director N.55) 2971.54 30.10 2953. including dividend tax Interest paid Net cash used in financing activities Net increase / (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of the year Add : Transferred consequent to amalgamation of companies Exchange difference on translation of foreign currency cash and cash equivalents Cash and cash equivalents at end of the year Earmarked balances with banks Short .Annual Report 2012-13 Cash Flow Statement for the year ended March 31.83) 13577. Ron Sommer Director Ishaat Hussain Director Suprakash Mukhopadhyay Company Secretary Mumbai.70) 21890.00 2447.92) (2.17 318.03) (2448.39 (16.56 (31. Christensen Director Phiroz Vandrevala Director Rajesh Gopinathan Chief Financial Officer Mumbai.90) 5.40 (0.81 16.07) (658.63 (1690.92) (837. CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax Adjustments for: Depreciation and amortisation expense Bad debts written off Provision / (Write back of provision) for doubtful receivables Provision for doubtful advances Advances written off / (written back) Interest expense Profit on sale of fixed assets (net) Unrealised exchange (gain) / loss Exchange difference on translation of foreign currency cash and cash equivalents Realised exchange gain on redemption of preference shares Dividend income (including exchange gain) Interest income Profit on redemption of mutual funds and sale of other current investments (net) Operating profit before working capital changes Inventories Unbilled revenue Trade receivables Loans and advances and other assets Trade payables.47 0.48) 11083.85) 7.

less accumulated depreciation / amortisation. As of March 31. b) Use of estimates The preparation of financial statements requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expense during the year. accounting for contract costs expected to be incurred.91% 13. 1956. e) Leases Assets taken on lease by the Company in its capacity as lessee. as amended] and the other relevant provisions of the Companies Act. Consulting and Asset Leveraged Solutions. The Company’s full services portfolio consists of Application Development and Maintenance. Engineering and Industrial Services.00% 10. Enterprise Solutions. Tata Sons owned 73. Business Process Outsourcing. employee benefits. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211(3C) [Companies (Accounting Standards) Rules. 2) SIGNIFICANT ACCOUNTING POLICIES a) Basis of preparation These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. Assurance. The Company’s registered office is in Mumbai and it has 58 subsidiaries across the globe.91% 100% 24 – 60 months License period Fixed assets purchased for specific projects are depreciated over the period of the project. IT Infrastructure Services. Each lease rental paid is allocated between the liability and the interest cost so as to obtain a constant periodic rate of interest on the outstanding liability for each year.33% 25. Business Intelligence. where the Company has substantially all the risks and rewards of ownership are classified as finance lease.00% 25. Fixed assets exclude computers and other assets individually costing ` 50. Example of such estimates include provision for doubtful receivables. Costs include all expenses incurred to bring the asset to its present location and condition. Such a lease is capitalised at the inception of the lease at lower of the fair value or the present value of the minimum lease payments and a liability is recognised for an equivalent amount. c) Fixed Assets Fixed assets are stated at cost.Notes forming part of the Financial Statements 1) CORPORATE INFORMATION Tata Consultancy Services Limited (referred to as “TCS Limited” or the “Company”) provide consulting-led integrated portfolio of information technology (IT) and IT-enabled services delivered through a network of multiple locations around the globe. the useful lives of depreciable fixed assets and provision for impairment.75% of the Company’s equity share capital and has the ability to control its operating and financial policies. d) Depreciation / Amortisation Depreciation / amortisation on fixed assets. provision for income taxes.00% Lease period 33.000 or less which are not capitalised except when they are part of a larger capital investment programme. other than freehold land and capital work-in-progress is charged so as to write-off the cost of assets. Unconsolidated Financial Statements 141 . except for certain financial instruments which are measured at fair value. 2013. on the following basis: Type of asset Leasehold land and buildings Freehold buildings Factory buildings Leasehold improvements Plant and machinery Computer equipment Vehicles Office equipment Electrical installations Furniture and fixtures Intellectual property / distribution rights Rights under licensing agreement Method Straight line Written down value Straight line Straight line Straight line Straight line Written down value Written down value Written down value Straight line Straight line Straight line Rate / Period Lease period 5. 2006.89% 13.

are recognised over the life of the contract using the proportionate completion method. Lease rentals under operating leases are recognised in the statement of profit and loss on a straight-line basis. Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related services are recognised as an actuarially determined liability at the present value of the defined benefit obligation at the balance sheet date. the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. which are generally time bound fixed price contracts. Revenues from maintenance contracts are recognised pro-rata over the period of the contract. the estimated future cash flows expected from the continuing use of the asset and from its disposal are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of time value of money and the risks specific to the asset. Revenues from the sale of equipment are recognised upon delivery. h) Employee benefits (i) Post-employment benefit plans Contributions to defined contribution retirement benefit schemes are recognised as an expense when employees have rendered services entitling them to such benefits. In assessing value in use. the cost of providing benefits is determined using the Projected Unit Credit Method. and as reduced by the fair value of scheme assets. Reversal of impairment loss is recognised immediately as income in the statement of profit and loss. Actuarial gains and losses are recognised in full in the statement of profit and loss for the period in which they occur. These benefits include compensated absences such as paid annual leave. overseas social security contributions and performance incentives. except for current maturities of long-term investments.Annual Report 2012-13 Notes forming part of the Financial Statements Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor. The retirement benefit obligation recognised in the balance sheet represents the present value of the defined benefit obligation as adjusted for unrecognised past service cost. Past service cost is recognised immediately to the extent that the benefits are already vested. are recognised as operating leases. which is when title passes to the customer. with actuarial valuations being carried out at each balance sheet date. Any asset resulting from this calculation is limited to the present value of available refunds and reductions in future contributions to the scheme. Revenues from turnkey contracts. g) Investments Long-term investments and current maturities of long-term investments are stated at cost. If any such indication exists. f) Impairment At each balance sheet date. For defined benefit schemes. Recoverable amount is the higher of an asset’s net selling price and value in use. Revenues are reported net of discounts. 142 Unconsolidated Financial Statements . Foreseeable losses on such contracts are recognised when probable. less provision for other than temporary diminution in value. whereas revenue from fixed price contracts is recognised as per the proportionate completion method with contract cost determining the degree of completion. Current investments. i) Revenue recognition Revenues from contracts priced on a time and material basis are recognised when services are rendered and related costs are incurred. revenue on time and material and unit priced contracts is recognised as the related services are rendered. with contract costs determining the degree of completion. In respect of Business Process Outsourcing (BPO) services. In case of customisation the same is recognised over the life of the contract using the proportionate completion method. comprising investments in mutual funds are stated at the lower of cost and fair value. or amortised on a straight-line basis over the average period until the benefits become vested. the management reviews the carrying amounts of its assets included in each cash generating unit to determine whether there is any indication that those assets were impaired. Interest income is recognised on time proportion basis taking into account the amount outstanding and the rate applicable. Revenues from sale of software licences are recognised upon delivery where there is no customisation required. (ii) Other employee benefits The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees is recognised during the period when the employee renders the service. Dividends are recorded when the right to receive payment is established.

l) Derivative instruments and hedge accounting The Company uses foreign exchange forward and currency option contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. Changes in the fair value of these derivatives that are designated and effective as hedges of future cash flows are recognised directly in shareholders’ funds and the ineffective portion is recognised immediately in the statement of profit and loss. Foreign currency monetary assets and liabilities other than net investments in non-integral foreign operations are translated at the exchange rate prevailing on the balance sheet date and exchange gains and losses are recognised in the statement of profit and loss.Notes forming part of the Financial Statements j) Taxation Current income tax expense comprises taxes on income from operations in India and in foreign jurisdictions. are stated at fair values and any gains or losses are recognised in the statement of profit and loss. If a hedged transaction is no longer expected to occur. Stores and spare parts are carried at cost. At that time for forecasted transactions. Purchased goods-in-transit are carried at cost. is considered as an asset if there is convincing evidence that the Company will pay normal income tax after the tax holiday period. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. which gives rise to future economic benefits in the form of adjustment of future income tax liability. m) Inventories Raw materials. in substance. forms part of an enterprise’s net investments in a non-integral foreign operation are accumulated in a foreign currency translation reserve. any cumulative gain or loss on the hedging instrument recognised in shareholders’ funds is retained there until the forecasted transaction occurs. Work-in-progress is carried at the lower of cost and net realisable value. Hedge accounting is discontinued when the hedging instrument expires or is sold. which provide written principles on the use of such financial derivatives consistent with the Company’s risk management strategy. In other situations. terminated. Unconsolidated Financial Statements 143 . and are remeasured at subsequent reporting dates. The use of hedging instruments is governed by the Company’s policies approved by the Board of Directors. Tax expense relating to foreign operations is determined in accordance with tax laws applicable in countries where such operations are domiciled. The Company offsets deferred tax assets and deferred tax liabilities if it has a legally enforceable right and these relate to taxes on income levied by the same governing taxation laws. less provision for obsolescence. The Company designates these hedging instruments as cash flow hedges. other than designated cash flow hedges. Changes in the fair value of derivative financial instruments that do not qualify for hedge accounting are recognised in the statement of profit and loss as they arise. Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India. Exchange difference arising on a monetary item that. MAT is recognised as an asset in the balance sheet when the asset can be measured reliably and it is probable that the future economic benefit associated with the asset will fructify. 1961. Foreign exchange forward and currency option contracts outstanding at the balance sheet date. Income tax payable in India is determined in accordance with the provisions of the Income Tax Act. deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available to realise these assets. Finished goods produced or purchased by the Company are carried at lower of cost and net realisable value. k) Foreign currency transactions Income and expenses in foreign currencies are converted at exchange rates prevailing on the date of the transaction. or exercised. sub-assemblies and components are carried at the lower of cost and net realisable value. Cost includes direct material and labour cost and a proportion of manufacturing overheads. Deferred tax expense or benefit is recognised on timing differences being the difference between taxable income and accounting income that originate in one period and is likely to reverse in one or more subsequent periods. or no longer qualifies for hedge accounting. Accordingly. the net cumulative gain or loss recognised in shareholders’ funds is transferred to the statement of profit and loss for the period. Advance taxes and provisions for current income taxes are presented in the balance sheet after off-setting advance taxes paid and income tax provisions arising in the same tax jurisdiction for relevant tax paying units and where the Company is able to and intends to settle the asset and liability on a net basis. deferred tax assets are recognised only to the extent that there is virtual certainty that sufficient future taxable income will be available to realise such assets. In the event of unabsorbed depreciation and carry forward of losses. Hedging instruments are initially measured at fair value. Cost is determined on a weighted average basis. Premium or discount on foreign exchange forward and currency option contracts are amortised and recognised in the statement of profit and loss over the period of the contract.

00 Amount (` crores) 195.00. Subscribed and Fully paid up (i) (ii) 195. Contingent liabilities are not recognised in the financial statements. Provisions (excluding retirement benefits) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. in respect of which reliable estimate can be made.00.20. Contingent liabilities and Contingent assets A provision is recognised when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation.996 144 Unconsolidated Financial Statements .72 195.00 100. Issued.00 100.72 As at March 31.00 225.72.00.00.72 (a) Reconciliation of number of shares As at March 31.20.000 redeemable preference shares of ` 1 each) 325.000 100.72 195.00.00 100.00 Issued.000 redeemable preference shares of ` 1 each (March 31.000 100.996 equity shares of ` 1 each) 100.00.00.00.72.20. 2012 Number of shares Amount (` crores) 195.00 100. which are readily convertible into known amount of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase.00.20.72 195.000 redeemable preference shares of ` 1 each) 295.00.00 225.00.00.20. 2012 : 100.00 195. 2012 : 225.72.72 100.00 100. o) Cash and cash equivalents The Company considers all highly liquid financial instruments.72 295.72 325.Annual Report 2012-13 Notes forming part of the Financial Statements n) Provisions. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.00.00 100.72. 2012 : 195.72.72. 2013 Authorised (i) (ii) 225. to be cash equivalents.000 100.996 195.00.00 As at March 31.000 100.00.00.000 equity shares of ` 1 each) 100.00.00.20. 2012 195.996 195. A contingent asset is neither recognised nor disclosed in the financial statements.000 equity shares of ` 1 each (March 31.00. 2012 : 100. Subscribed and Fully paid-up share capital comprises of equity shares and redeemable preference shares having a par value of ` 1 each as follows: (` crores) As at March 31. 3) SHARE CAPITAL The Authorised.000 redeemable preference shares of ` 1 each (March 31. 2013 Number of shares Equity shares Opening balance Changes during the year Closing balance Preference shares Opening balance Changes during the year Closing balance 100.996 equity shares of ` 1 each (March 31.996 195.00.

2012 144.35 144. March 28.29.70.51.00.52 0.698 equity shares (March 31.34. In the event of liquidation.000 redeemable preference shares (March 31. Each shareholder is eligible for one vote per share held.06 0. the Holding Company Preference shares Tata Sons Limited.00.35 (` crores) As at March 31.00.10 0. 2012 : 100.51.01 144.51.232 equity shares) are held by Tata International Limited 452 equity shares (March 31. (c) Shares held by holding company.04 0.34. 2012 : 144.698 equity shares) are held by Tata Sons Limited Subsidiaries and associates of Holding Company 10.01 144. 2012 : 452 equity shares) are held by The Tata Power Company Limited Total Preference shares Holding Company 100. 2012 : 20.e. preferences and restrictions attached to shares Equity shares The Company has one class of equity shares having a par value of ` 1 each.00.77 (d) Details of shares held by shareholders holding more than 5% of the aggregate shares in the Company As at March 31.00 100. 2013 Equity shares Holding Company 144.91.90.735 equity shares) are held by Tata AIG Life Insurance Company Limited 5.51.000 100% As at March 31.452 equity shares (March 31. These shares would carry a fixed cumulative dividend of 1% per annum and a variable non-cumulative dividend of 1% of the difference between the rate of dividend declared during the year on the equity shares of the Company and the average rate of dividend declared on the equity shares of the Company for three years preceding the year of issue of the redeemable preference shares. its subsidiaries and associates As at March 31.200 equity shares) are held by Tata Global Beverages Limited 83.06 0.00 144.Notes forming part of the Financial Statements (b) Rights.90. the Holding Company 144. 2012 : 200 equity shares) are held by Tata Capital Limited Nil equity share (March 31.21 0. the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts.34. 2013 Equity shares Tata Sons Limited. but may be redeemed at any time after 3 years from the date of allotment at the option of shareholder. in proportion to their shareholding.698 73.00 100.10 0.75% 100. 2012 : 5.452 equity shares) are held by Tata Investment Corporation Limited 200 equity shares (March 31. 2012 : 10. 2012 : 83.00.700 equity shares (March 31.700 equity shares) are held by Tata Industries Limited Nil equity share (March 31.00.232 equity shares (March 31. except in case of interim dividend.000 100% Unconsolidated Financial Statements 145 . 2008. 2012 0. Preference shares Preference shares would be redeemable at par at the end of six years from the date of allotment i.34.698 73.29.00.00 100.75% 100. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. 2012 : 3.00.000 redeemable preference shares) are held by Tata Sons Limited Total 100.

5) LONG .18 (` crores) As at March 31.53 1761.47 152.31) (25. 2012 1918. 2.76 96.10.85 32266. 2009 pursuant to a shareholder’s resolution passed by postal ballot on June 12.46 22.96) 81. 4) RESERVES AND SURPLUS Reserves and surplus consist of the following reserves: As at March 31. 2013) The Company allotted 97.Annual Report 2012-13 Notes forming part of the Financial Statements (e) Shares allotted as fully paid up by way of bonus shares (during 5 years preceding March 31.47 101. 2012 146 Unconsolidated Financial Statements .86.61 50.18 1278.60 18235.00 797.49 2544.498 equity shares as fully paid up bonus shares by utilisation of Securities premium reserve on June 18.20 10975. 2013 (a) (b) Securities premium reserve Foreign currency translation reserve (i) Opening balance (ii) (c) Addition during the year (net) 1918.39 19.45 55.15 174.20 (103.TERM BORROWINGS Long .35 (37.61 (25. 2013 (a) (b) Secured loans Long term maturities of obligations under finance lease Unsecured loans Other borrowings (from entities other than banks) 1.20 24560.11 (e) Surplus in statement of profit and loss (i) (ii) (iii) (iv) Opening balance Add: Transferred on amalgamation (Refer Note 29) Add : Profit for the year Less : Appropriations (a) Interim dividends on equity shares (b) Proposed final dividend on equity shares (c) Dividend on redeemable preference shares (d) Tax on dividend (e) General reserve 1761.58 93.55 22.00) 12786.85 152.23 81.49 3131.10 Obligations under finance lease are secured against fixed assets obtained under finance lease arrangements.34 1097.49 4280.91 18235.52 83.46 11.98 25045.34 30918.54 14069.63 24602.00 712.47 (` crores) As at March 31.14 1097.74 Hedging reserve account (Refer Note 39) (i) Opening balance (ii) Addition / (deduction) during the year (net) General reserve (i) (ii) (iii) Opening balance Adjustment on amalgamation (Refer Note 29) Transferred from surplus in statement of profit and loss (d) The Board of Directors at its meeting held on April 17.term borrowings consist of the following: As at March 31.96) 3183.60 4280. 2009.26) 1278. 2013 has recommended a final dividend of ` 13 per equity share.74 (44.63 5515.

78 54.34 197. 2012 10.Notes forming part of the Financial Statements 6) DEFERRED TAX BALANCES Major components of the deferred tax balances consist of the following: As at March 31.52 269. loans and advances Others (74. 2012 Unconsolidated Financial Statements 147 .78 154.43 118.96 (` crores) As at March 31.03 29.term provisions consist of the following: As at March 31.96 197.87 Other liabilities comprise : Fair value of foreign exchange forward and currency option contracts secured against trade receivables Capital creditors Others 8) LONG . 2013 (a) Deferred tax liabilities (net) (i) (ii) (iii) Foreign branch profit tax Depreciation and amortisation Others 160.term liabilities consist of the following: As at March 31.49 (b) Deferred tax assets (net) (i) (ii) (iii) (iv) Depreciation and amortisation Employee benefits Provision for doubtful receivables.83 5.87 251.63 139. (` crores) As at March 31.TERM LIABILITIES Other long .96 67.37 31.84 9. 2013 Provision for employee benefits 269. 2013 (a) (b) Trade payables Other liabilities 251.27 8.23 148.10 (` crores) As at March 31.63 113.98 53.TERM PROVISIONS Long .22 168.53 41.23 7) OTHER LONG .99) 126.44 28.59 (33.63 186. 2012 154.31) 90.52 Provision for employee benefits includes provision for gratuity and other retirement benefits.74 102.

24 6.79 1598.63 Provisions for employee benefits include provision for compensated absences and other short .59 9.95 (` crores) As at March 31.term employee benefits.74 380.00 511. 11) SHORT .14 3131.24 7.63 479.81 46.TERM BORROWINGS Short term borrowings consist of the following: As at March 31. 148 Unconsolidated Financial Statements . 2012 Obligations under finance lease are secured against fixed assets obtained under finance lease arrangements.15 3896. 2012 506.Annual Report 2012-13 Notes forming part of the Financial Statements 9) SHORT .58 0.term provisions consist of the following: As at March 31.01 337.65 257.56 (` crores) As at March 31.00 435.10 12.55 22.86 498.05 561.05 683.59 217.47 1008. 2012 1.01 639.71 Other payables comprises of : Fair value of foreign exchange forward and currency option contracts secured against trade receivables Statutory liabilities Capital creditors Class action suit settlement consideration (Refer Note 49) Others 57.46 1423. 2013 Secured Loans From Banks Overdraft 80.24 4389.35 161.TERM PROVISIONS Short .98 2172.18 8. 2013 (a) (b) (c) (d) (e) (f) (g) Current maturities of long-term debt Current maturities of finance lease obligations Interest accrued but not due on borrowings Income received in advance Unpaid dividends Advance received from customers Other payables 1.96 226.39 19.18 137.73 0.02 Bank Overdrafts are secured against book debts. 10) OTHER CURRENT LIABILITIES Other current liabilities consist of the following: As at March 31.02 80. 2013 (a) (b) Provision for employee benefits Others (i) (ii) (iii) (iv) Proposed final dividend on equity shares Proposed dividend on redeemable preference shares Tax on dividend Current income taxes (net) 2544.30 (` crores) As at March 31.74 153.

23) (795.95 325.53) 2. 2013 Net book value as at March 31.16 Total (4048.53 1344.37 Computer equipment 2317.95 9.35) (94.21 (8.80) 351.09) 503.87 (1578.81) (0.23) 77.60 103.15 (2.98) 1032.87) (317.63 (347.76 7210.75) 2818.08) 9107.30) 4012.08) (356.02 1966.63 (11.82) 0.08 (7.27 63.22) 43.48 6.23) (6.63 (11.04) 44.65 0.99 agreement 71.23) (2.44) (0.85 22.24 79.62 315.21 (20.28) 0.34) 1.38 Electrical installations 581.08) 6868.21 (65.61 769.57 540.75) (681.Notes forming part of the Financial Statements (` crores) 12) FIXED ASSETS Fixed assets consist of the following: Description Gross Block as at April 1.40) (802.97) (3.63 71. with the Company.13) 8.39 1962. (b) Deletions / adjustments include fixed assets of ` 105.20) 1.94) (20.02 (10.04) 5059.15 (447.60) 59.48 (426.25) (12. (e) Legal formalities relating to conveyance of freehold building having net book value ` 10.52) 51.76) (12. 2013 Accumulated Depreciation / Depreciation / Deletions / Amortisation for Amortisation Adjustments the year as at March 31.83 207.15) (95. with the Company. 2012 : ` 11.51) (54.46 1399.73 crore (March 31.37 (304.57 crores).75 (3198.61) (93.18 129.07 crores transferred on the amalgamation of Retail FullServe Limited and Computational Research Laboratories Limited (erstwhile subsidiaries of the Company).39 Freehold buildings 1935. 149 .88 Plant and machinery 10.67 Vehicles 19. 2012 (i) Unconsolidated Financial Statements Tangible assets Freehold land 315.10 1579. 2012 : ` 92.49) 852.42 (65.86) (57.99 Office equipment 827.38) 1.62) 363.34 3.60) 0.36 (3218.60 crores (March 31.48) 92. (d) Leasehold improvements under finance lease have a net book value of ` 77.52) 50.92 193.55) (0.33) 2171.68) (2.21 (19.39 (2594.97 (12.17) 51.84 (31.72 crores arising on realignment of depreciation policies of Retail FullServe Limited and Computational Research Laboratories Limited consequent to the amalgamation with the Company.81) 7210. 2012 Additions Deletions / Adjustments Gross Block as at March 31.92 174.58) 181.13 558.03 (451.06) (71.72 (356.75) (2.77 (1.82 (iii) Capital work-in1763.67 crores (March 31.67 (92.96) (8.00 9.23) 1.63) 605.38) 1.13 (a) Additions include fixed assets of ` 143. (c) Freehold buildings include ` 2.82) 5463.17) (7.47 Leasehold improvements 690.14) 2.65) 739.08) 9183.57 Leasehold land 92.68) (78.19 (230.49 (56.29) 2622.48 Previous year 5958.50 (405.67 crores) being value of investment in shares of Co-operative Housing Societies and Limited Companies.73) (6.54 crores being the amount of accumulated depreciation transferred on the amalgamation of Retail FullServe Limited and Computational Research Laboratories Limited (erstwhile subsidiaries of the Company).61) 454.46 Total 75.10 10.67 (10. (f) Deletions / adjustments include ` 15.59 crore) are pending completion.05 (1966.57 325. 2013 Accumulated Depreciation / Amortisation as at April 1.26 3.23) 4012.74 2.76) (31.07 Furniture and fixtures 407.19) (8.18 687.29 87.54 Leasehold buildings 9.39 Factory buildings 2.03) (0.00 4. 2012 : ` 2.62 (2. 2012 Net book value as at March 31.08 4.63 4.44 Grand Total (4079.81 (8.63 (13.80 Previous year 71.81 (7.27) (6.16 (ii) Intangible assets Intellectual property / 12.12 (13.85 progress 7282.05) 0.19 12.00 (324.83 (0.81 distribution rights Rights under licensing 59.98) 372.80 (1.35) (3.77 (1.52 (3198.86 759.

87 18.62. TCS e-Serve Limited (Refer Note 38) Retail FullServe Limited (Shares cancelled on amalgamation) MahaOnline Limited Tata Consultancy Services Qatar S.000 1 20.92 2426.000 1.36.52 3.815 shares subscribed during the year) 10.89 1.00.44 36.58.58.92 18.17 4.10 0.10 0.000 75. Tata Consultancy Services Canada Inc. Computational Research Laboratories Inc.17 4.815 INR EUR EUR SEK EUR USD SGD INR AUD 10 1000 100 10 1 10 1 APOnline Limited Tata Consultancy Services Belgium S.87 18.000 84.69 38.S.89 8.72.82.92.300 66.500 3.89 8. Tata Consultancy Services Sverige AB Tata Consultancy Services Deutschland GmbH Tata America International Corporation Tata Consultancy Services Asia Pacific Pte Ltd.72 1.000 8. 2013 As at March 31.90.38 461.25 5.76.A.05 31.61 10 10 10 1 10 10 1 Diligenta Limited Tata Consultancy Services Canada Inc.78.89 1.800 shares subscribed during the year) 15.20 429.89 379.31 165.Annual Report 2012-13 Notes forming part of the Financial Statements 13) NON . (1 share transferred during the year on amalgamation) 1.313 18.23 379.C.06 402.820 10. Tata Consultancy Services Netherlands B.89 2.89 As at March 31.89.V.300 1.200 INR Peso 10 1 CMC Limited (b) Fully paid equity shares (unquoted) TCS Iberoamerica SA (119.58.19.92 18. C-Edge Technologies Limited MP Online Limited Tata Consultancy Services Morocco SARL AU Tata Consultancy Services (Africa) (PTY) Ltd.000 1 GBP USD CAD INR INR Dirhams RAND INR INR INR QAR USD 1 70653. 2012 150 Unconsolidated Financial Statements .20 1.19.current investments consist of the following: (` crores) In Numbers Currency Face Value Per share Description (A) TRADE INVESTMENTS (at cost) (i) Subsidiary companies (a) Fully paid equity shares (quoted) 1.89.89 2.54.17 429.001 1.00.000 14.72 452.922 2.25 5.44 1.92 2426. WTI Advanced Technology Limited TCS FNS Pty Limited (3.CURRENT INVESTMENTS Non .48.000 100 51.08.000 1.05 31.75.06 402.00.52 211.72 452.69 38.

520 2.90.00 75.000 1.00.Notes forming part of the Financial Statements 13) NON .06 379.000 15 69 180 10 900 500 1.94 (ii) Bonds and Debentures (unquoted) 10% Housing Urban Development Corporation Limited Bonds (2014) 0 % ALMC HF (2014) IDBI 8% Bonds (2013) 8% Bonds (2018) Tata Sons Limited 8.865 25.00 200.12 0.04 28.CURRENT INVESTMENTS (Continued) In Numbers Currency Face Value Per share Description (c) Fully paid preference shares (unquoted) Diligenta Limited 10% cumulative redeemable preference shares APOnline Limited 6% cumulative redeemable preference shares (ii) Others 4. 2012 4.00 125.00 5984.00 3.000 69 20.00 2.50 19.89 5595.29) 5975.00 50.50% non-convertible debentures (2014) 9.80 5.26 1.00.50 0.000 shares subscribed during the year) (B) OTHERS (i) 1.10 90.04 363.02 1.91 1.17 1540.70 Unconsolidated Financial Statements 151 .001 10 10 297 10 Fully paid equity shares (unquoted) Yodlee.000 USD INR INR EUR INR 0.20.50% non-convertible debentures (2016) Tata Motors Limited 9.78% non-convertible debentures (2015) 9.63. 2013 (` crores) As at March 31.000 INR 10 - 2.69% non-convertible debentures (2019) 10.00 % non-convertible debentures (2019) Provision for diminution in value of investments Book value of quoted investments Book value of unquoted investments (net of provision) Market value of quoted investments (8.000 750 1.12 1.00 As at March 31. National Power Exchange Limited Taj Air Limited ALMC HF KOOH Sports Private Limited (20.73 379.000 GBP 1 363.89 4767.33 5155.87% non-convertible debentures (2017) Panatone Finvest Limited 9.50 19.80 0.250 INR INR EUR INR INR INR INR INR INR INR INR INR 52610 1000000 297 100000 100000 1000000 1000000 1000000 1000000 1000000 1000000 Investment in mutual and other funds (unquoted) India Innovation Fund 2.00.98% non-convertible debentures (2015) 9.10 333.84 2093.00.00.29) 5147.50 0.00. Inc.00 152.35 (8.

corporate deposits Advance against investment Other amounts recoverable in cash or kind for value to be received Loans and advances to related parties. comprise: Tata Sons Limited TCS FNS Pty Limited TCS Iberoamerica SA CMC Limited Tata Realty And Infrastructure Limited Other loans and advances comprise: Indirect tax recoverable Inter . a wholly owned subsidiary.13 2. respectively from the date of allotment.78 1772. The restriction is valid as at March 31.39 2.22 5.82 58.35 0. respectively. The first two installments of the debentures issued by Tata Sons Limited have been redeemed during the years ended March 31.58 1443.60 45.30 353.06 387.92 1459.44 449. 2013.term loans and advances (unsecured) consist of the following: (` crores) As at March 31. 2013 (a) Considered good (i) (ii) (iii) (iv) (v) (vi) (vii) (b) Capital advances Security deposits Loans and advances to employees Loans and advances to related parties Advance tax (including refunds receivable (net)) MAT credit entitlement Other loans and advances 476.30 241.93 52.03 As at March 31.97 201.26 9. Unquoted debentures include subscription to the privately placed unsecured.81 Less : Provision for doubtful loans and advances 152 Unconsolidated Financial Statements .58 52.21 Loans and advances to related parties. comprise: Tata Consultancy Services Morocco SARL AU 20.22) 4630.88 327. 14) LONG .39 5. is in the process of being voluntarily liquidated.31 405.23 978.51 291. considered good. third and fourth year.05 541.93 (5.20 352.74 10. 2012 Considered doubtful (i) Loans and advances to related parties 20. The debentures issued by Panatone Finvest Limited have been renewed for a further period of three years with a revised interest rate of 9. The debentures issued by Tata Sons Limited would be redeemable at par in three equal installments at the end of second. The Company has given an undertaking to the investors of KOOH Sports Private Limited not to transfer its shareholding prior to the expiry of thirty-six months from the completion date of the investment agreement except with the prior written consent of the other parties to the agreement.TERM LOANS AND ADVANCES (Unsecured) Long . The restriction is valid as at March 31.01 45.40 0.06 7. considered doubtful.CURRENT INVESTMENTS (Continued) The Company has given an undertaking to the Government of Maharashtra not to divest its shareholding in MahaOnline Limited except to an affiliate. 2013. Tata Consultancy Services Morocco SARL AU. 2013.22 (20.93) 4332. This equity investment is subject to the restriction as per terms of contractual agreement. unlisted redeemable non-convertible debentures issued by Tata Sons Limited in January 2010 and its subsidiary Panatone Finvest Limited in March 2010 for a consideration of ` 1000 crores and ` 200 crores.Annual Report 2012-13 Notes forming part of the Financial Statements 13) NON . 2013 respectively.19 0.50% during the year ended March 31. 2012 and March 31.60 646.

The first two installments of the debentures issued by Tata Sons Limited have been redeemed during the years ended March 31. Unconsolidated Financial Statements 153 .000 INR 10 APOnline Limited 6% cumulative redeemable preference shares Tata AutoComp Systems Limited 8% cumulative redeemable preference shares (B) OTHERS (i) Investment in mutual and other funds (unquoted) 30.50% non-convertible debentures (2013) Panatone Finvest Limited 8.33 1.00 541.75 2510.000 69. 2013 (a) (b) Interest receivable Long .33 3.33 100000 Tata Sons Limited 8.13 2636.02.88 - INR - - 5. third and fourth year.00.33 200.80 348. 2013 respectively.00 Unquoted debentures include subscription to the privately placed unsecured.current assets consist of the following: (` crores) As at March 31.90 1881. 2012 126.52 INR INR 10 1000 HDFC Debt Fund for Cancer Cure .75% non-convertible debentures (2013) 8% IDBI Bonds (2013) 333.00 7. unlisted redeemable non-convertible debentures issued by Tata Sons Limited in January 2010 and its subsidiary Panatone Finvest Limited in March 2010 for a consideration of ` 1000 crores and ` 200 crores. respectively.72 3.80 As at March 31.20 16) CURRENT INVESTMENTS Current investments consist of the following: (` crores) In Numbers Currency Face Value Per share Description (A) TRADE INVESTMENTS (at cost) Fully paid preference shares (unquoted) 28. 2013 As at March 31. The debentures issued by Tata Sons Limited would be redeemable at par in three equal installments at the end of second.term bank deposits 29.307.50% during the year ended March 31.Notes forming part of the Financial Statements 15) OTHER NON . 2012 and March 31. The debentures issued by Panatone Finvest Limited have been renewed for a further period of three years with a revised interest rate of 9. 2012 As at March 31.65 333.000 180 INR INR INR 333333. 2013.00 2.30 1851.50% Dividend Donation Option TATA Liquid Super High Investment Fund (ii) Bonds and Debentures (unquoted) 10. respectively from the date of allotment.CURRENT ASSETS Other non .

sub-assemblies and components Finished goods and Work-in-progress Goods-in-transit 5.95 9235.78) 9107.77 9.00 3280.94 146.10 crores). 2013 (a) Cash and cash equivalents (i) Balances with banks In current accounts In deposit accounts with original maturity less than 3 months (ii) (iii) (iv) (b) Cheques on hand Cash on hand Remittances in transit 192.47 crores) primarily comprises of the revenue recognised in relation to efforts incurred on turnkey contracts priced on a fixed time.25 crores (March 31.48 103.10 2953.31 crore) operated by the Company on behalf of a third party.07 176.78 4054.85 Other bank balances (i) (ii) Earmarked balances with banks Short .54 0. 2012 7823.35 crores (March 31.58 323.34 Inventories are carried at the lower of cost and net realisable value.78 As at March 31.Annual Report 2012-13 Notes forming part of the Financial Statements 17) INVENTORIES Inventories consist of the following: (` crores) As at March 31.92) 11202.53 3719.77 17.54 0.14 Balances with banks in current accounts do not include fourteen bank accounts having a balance of ` 1.37 0. 2012: ` 1567. 2012 3.term bank deposits 10.97 As at March 31.16 8.30 4.30 0.99 123. 154 Unconsolidated Financial Statements . fixed price basis of ` 1509.38 11349.32 20) CASH AND BANK BALANCES Cash and bank balances consist of the following: (` crores) As at March 31. 19) TRADE RECEIVABLES (Unsecured) Trade receivables (Unsecured) consist of the following: (` crores) As at March 31. 2013 (a) (b) (c) Raw materials.50 (127.89 16.25 0.24 Less: Provision for doubtful receivables (146. 2013 amounting to ` 2303. 2012: ` 1208.35 crores (March 31.77 127. 2012: ` 0. 18) UNBILLED REVENUE Unbilled revenue as at March 31.72 Considered good Considered doubtful 1557.02 318.17 6.70 1. 2012 As at March 31. 2013 (a) Over six months from the date they were due for payment (i) (ii) (b) Others (i) Considered good 9644.63 0.92 1283.

considered doubtful.15 5.00 68.78) 1649.00 1.81 32. comprise: Security deposits Advance to suppliers Other amounts recoverable in cash or kind for value to be received 22) OTHER CURRENT ASSETS Other current assets consist of the following: (` crores) As at March 31.74 14.02 0.34 As at March 31.48 Loans and advances to related parties.09 176.79 0.77 32.00 3.S.11 93.40 (40.01 21.59) 4911.01 3.41 388.corporate deposits Indirect tax recoverable Fair value of foreign exchange forward and currency option contracts Advance to suppliers Other amounts recoverable in cash or kind for value to be received Other loans and advances.46 50.74 36.27 0. 2013 (a) Considered good (i) (ii) (iii) (b) (i) (ii) Loans and advances to employees Loans and advances to related parties Other loans and advances Loans and advances to employees Other loans and advances Less : Provision for doubtful loans and advances 162.04 1066. comprise: Security deposits Inter .50 1.48 0.C. comprise: Tata Sons Limited TCS FNS Pty Limited Tata Realty And Infrastructure Limited CMC Limited Tata Teleservices Limited Tata AIG General Insurance Company Limited Tata Teleservices (Maharashtra) Limited Tata Consultancy Services Qatar S.63 (37.41 2.01 50.65 3116.02 4. considered good.20 4641.63 250.38 0.Notes forming part of the Financial Statements 21) SHORT .36 733. 2013 (a) (b) Interest receivable Others 667.51 34.83 0. 2012 388.09 140. TCS e-Serve Limited Tata Consultancy Services (Africa) (PTY) Ltd. 2012 Considered doubtful Unconsolidated Financial Statements 155 . Other loans and advances.22 0.59 151.46 49.19 4.95 178.98 0. considered good.56 2.77 151.74 As at March 31.TERM LOANS AND ADVANCES (Unsecured) Short – term loans and advances (Unsecured) consist of the following: (` crores) As at March 31.01 0.82 96.04 0.84 1332.54 107.30 1.98 100.60 682.

17 5.72 2012 11933.57 2428.corporate deposits Interest on bonds and debentures Interest on loan given to subsidiary Other interest Dividend income comprise: Dividend from subsidiaries (non-current trade investments) Dividend from other non-current investments (trade investments) Dividend from mutual funds (current investments) Exchange gain / (loss) (net) includes: Loss on foreign exchange forward and currency option contracts which have been designated as Cash Flow Hedges (Refer Note 39).31 359.74 23.29 97.82) 48426.47 2230.68 9.88 20.23 (c) 156 Unconsolidated Financial Statements .82) 16.85 2427.77 21.48 1.26 1405.08 0.02 1108.68 (246.00 12.07 294.25) 38104.72 1552. 25) EMPLOYEE BENEFIT EXPENSES Employee benefit expenses consist of the following: (` crores) 2013 (a) (b) Salaries and incentives Contributions to (i) Provident fund (ii) Superannuation scheme (iii) Gratuity fund (iv) Social security and other plans for overseas employees Staff welfare expenses 15067.03 108.33 (432.36 139.66 223.36 91.39 874.05 37.22 (0.Annual Report 2012-13 Notes forming part of the Financial Statements 23) REVENUE FROM OPERATIONS Revenue from operations consist of revenues from: (` crores) 2013 (a) (b) Information technology and consultancy services Sale of equipment and software licenses Less : Excise duty 46874.28 17081.58 474.40 0.12 430.78 203.18 2012 36699.65 13572.63 0.19 110.59 53.01) 1107.46) (746.20 515.23 3.24 106.63 0.99 2685.40 0.40 0.39 Interest income comprise: Interest on bank deposits Interest on inter .65 1044.14 24) OTHER INCOME (Net) Other income (net) consists of the following: (` crores) 2013 (a) (b) (c) (d) (e) (f) (g) Interest income Dividend income Profit on redemption of mutual funds and sale of other investments (net) Rent Profit on sale of fixed assets (net) Exchange gain / (loss) (net) Miscellaneous income 837.27 2012 658.24 (0.47 186.

41 166.93 375.02 0.26 12.96 20.31 (23.15 (i) Overseas business expenses comprise: Travel expenses Employee allowances (ii) Repairs and maintenance comprise: Buildings Office and computer equipment (iii) Software.95 17038. hardware and material costs includes: Material costs (a) Raw materials.66 29. sub-assemblies and components consumed Finished goods and work-in-progress (c) Less: Closing stock: Finished goods and work-in-progress 0.55 3653.27 485.Notes forming part of the Financial Statements 26) OPERATION AND OTHER EXPENSES Operation and other expenses consist of the following: (` crores) 2013 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) (n) (o) (p) (q) (r) (s) (t) Overseas business expenses Services rendered by business associates and others Software.16 (1.04 25.84 669.54 11.09 2012 5804.10 34.54 25.02 0.99 219.64 17.06 35.81 16.05) 170.88 1934.88 417.76 20.52 372.32 792.08 635.57 665.69 271.51 15.08 19.99 17.91 391.10 2244. hardware and material costs Communication expenses Travelling and conveyance expenses Rent Legal and professional fees Repairs and maintenance Electricity expenses Bad debts written off Provision / (Write back of provision) for doubtful receivables Provision for doubtful advances Advances written off / (written back) Recruitment and training expenses Commission and brokerage Printing and stationery Insurance Rates and taxes Entertainment Other expenses 7487.85 13145.78 0.85) 7.83 117.52 59.02 (iv) Other expenses includes: Stores and spare parts consumed 0.02 75.70 5326.54 166.80 (b) Opening stock: 123.83 Unconsolidated Financial Statements 157 .60 242.66 101.67 292.68 6817.89 2.61 15.87 478.27 148.03 0.07 24.79 2587.54 0.23 417.

Computational Research Laboratories Limited is engaged in the business of conducting research and development relating to high performance computing and allowing usage of computers. benefits under income tax.62 2012 16. 2012 and October 1. have been taken over at their book values. 2012: Nil). have been amalgamated with the Company with effect from April 1. outstandings. As stipulated in the scheme of amalgamation. have been transferred to and vested in the Company retrospectively with effect from April 1. the Company has acquired 100% equity share capital of Computational Research Laboratories Limited. amalgamated as aforesaid. all reserves of the above mentioned subsidiaries have been transferred to the General reserve except for balances lying in the statement of profit and loss as on March 31.97 crores (March 31. 2012 and October 1. benefits for and under STPI and special economic zone registrations. no shares were exchanged to effect the amalgamation. 2012 and October 1. 2012 respectively. liabilities and reserves of Retail FullServe Limited and Computational Research Laboratories Limited as at April 1. b) Retail FullServe Limited and Computational Research Laboratories Limited – wholly owned subsidiaries of Tata Consultancy Services Limited. excise. 2013 and pursuant thereto all assets and debts. 1956. the assets.99 crores) in domestic and certain overseas jurisdictions relating to earlier years. duties and obligations of the above mentioned subsidiaries. 2012 respectively. were wholly owned by the Company. 158 Unconsolidated Financial Statements .12 crores (March 31. 2012: Write back of provisions (net) and refunds received ` 34. Since the subsidiaries.40 28) Current tax includes additional provision (net) of ` 39. 2012 respectively. credits. The difference between the amounts recorded as investments of the Company and the amount of share capital of Retail FullServe Limited and Computational Research Laboratories Limited have been adjusted in the General reserve. On August 16 2012.Annual Report 2012-13 Notes forming part of the Financial Statements 27) FINANCE COSTS Finance costs consist of the following: (` crores) 2013 Interest expense 30.40 16.62 30. 29) AMALGAMATION OF COMPANIES a) Nature of business of amalgamating companies: Retail FullServe Limited is engaged in the business of providing information technology and business process outsourcing services. including providing consultation services in the field of information technology. 2012 and September 30. 2013. liabilities. 2012 respectively. which have been transferred to the surplus in statement of profit and loss of the Company. Accordingly. in terms of the scheme of amalgamation (Scheme) sanctioned by the High Court of Judicature at Bombay vide their Order dated March 22 . sales tax (including deferment of sales tax). c) The amalgamations stated above have been accounted for under the “pooling of interests” method as prescribed by Accounting Standard (AS-14) notified under Section 211(3C) of the Companies Act. The impact of MAT entitlement of earlier period is ` 128. The Scheme came into effect on April 1.

liabilities and reserves in accordance with the terms of the Scheme at the following summarised values: (` crores) Particulars Retail FullServe Limited Computational Research Laboratories Limited October 1. The Company has contributed ` 123.91) 37.86 crores (March 31.00 35.14 0.92 (159.52 4. 2012: ` 91.01 9.30 4. 2012: ` 89.55 crores) towards foreign defined contribution plans. Under the schemes.17 28.40 4.65 2.23) (167.49 (0. Vesting occurs upon completion of five years of service. The scheme provides for lump sum payment to vested employees at retirement. The contributions as specified under the law are paid to the Provident Fund set up as a trust by the Company.49) (15.00 25.12 0.13 19. death while in employment or on termination of employment of an amount equivalent to 15 days salary for service less than 15 years.14 15.32 5.09 (131.86 64.19 3. 2012 27. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.61) (8.72) (44. 2012 10. if any.13 22.26 68. 2012: ` 359.30 4. with actuarial valuations being carried out at each balance sheet date.12 14.54 36.85 2. The Company is generally liable for annual contributions and any shortfall in the fund assets based on the government specified minimum rates of return and recognises such contributions and shortfall. other liabilities and provisions Total net assets acquired on amalgamation Less: Adjustment for cancellation of Company’s investments in subsidiaries Less: Transfer of balances of statement of profit and loss of amalgamated companies to the surplus in statement of profit and loss of the Company Add: Adjustment for alignment of accounting policies Balance transferred to General Reserve as at appointed date of amalgamation 30) RETIREMENT BENEFIT PLANS (a) Defined contribution plans April 1.37 64. three-fourth month’s salary for service of 15 years to 19 years and one month salary for service of 20 years and more.Notes forming part of the Financial Statements Accordingly.03) (103.57 3.43 22.00) (15. the amalgamations have resulted in transfer of assets.31 5.19 crores) for superannuation contributions in the statement of profit and loss.11) (36.54) Total Appointed date of amalgamation Assets Fixed Assets (net) Deferred tax asset Unbilled revenue Trade receivables Cash and bank balances Investments MAT credit entitlement Loans and advances and other assets Less: Liabilities Borrowing Trade payables.33 4.36 crores) for provident fund contributions and ` 106.36 crores (March 31. payable for each completed year of service or part thereof in excess of six months.24 crores (March 31. The Company recognised ` 430.86 19.01 163. as an expense in the year it is incurred.20 0. Unconsolidated Financial Statements 159 . The present value of the defined benefit obligation and the related current service cost were measured using the Projected Unit Credit Method.55 200.26) The Company makes Provident Fund and Superannuation Fund contributions to defined contribution retirement benefit plans for eligible employees. the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. (b) Defined benefit plans The Company makes annual contributions to the Employees’ Group Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of India. a funded defined benefit plan for eligible employees.

end of the year ii) Change in plan assets: Fair value of plan assets.42 40.04 47.46) 12.50 (40.Annual Report 2012-13 Notes forming part of the Financial Statements The following table sets out funded status of the gratuity plan and the amounts recognised in the Company’s financial statements as at March 31.95) 679.56 50.66) 494.36 (40.00 6.62 (` crores) iv) Category of assets: Insurer managed funds Others Total As at March 31. end of the year Excess of obligation over plan assets Accrued liability 679.43 0. beginning of the year Expected return on plan assets Employers’ contributions Benefits paid Actuarial gain Fair value of plan assets.99 31.25 542.50 As at March 31. beginning of the year Service cost Interest cost Liabilities transferred on amalgamation Actuarial loss Benefits paid Projected benefit obligation. 2013 i) Change in benefit obligations: Project benefit obligation.90 (40.50 139. 2013 593. seniority.25 112.63 542. 2012 % 8. 2013 As at March 31.36 14.99) 7.95 (31. 2012 552.80 93.48 (31.00 8.60 The estimate of future salary increase considered in actuarial valuation takes account of inflation.85 110.95) 6.46 40.04 As at March 31.74 51.78 47.16 62.16 62.21) (137. (` crores) As at March 31.00 v) Assumptions used in accounting for gratuity plan: % Discount rate Salary escalation rate Expected rate of return on plan assets 8.96 0.00 8.90) 830.04 (137.07 593.54 0. 160 Unconsolidated Financial Statements .16 As at March 31.56 50.46 2012 93.66) (236. promotion and other relevant factors such as supply and demand factors in the employment market.00 593.50 (236. 2013.50 6.90) 4.61 16.21) (` crores) iii) Net gratuity and other cost: Service cost Interest on defined benefit obligation Expected return on plan assets Net Actuarial losses recognised in the year Net gratuity and other cost Actual return on plan assets 2013 112.08 542.54 (47. 2012 541.

33 2916. etc.35) (16.93 1630.74 11662.54 Business Segments Manufacturing Retail and Consumer Packaged Goods 7369.21 5277.48 704.01 9657.07) 2012 2011 2010 2009 The expected contribution is based on the same assumptions used to measure the Company’s gratuity obligations as of March 31.98 Unconsolidated Financial Statements 161 .15 2230.38) 4.91 452.74 Telecom. Expenses which are not directly identifiable to specific segment have been allocated on the basis of associated revenues of the segment and manpower efforts. 2013 Particulars Banking.67 552.02 2327.79 10681.39 2685.61 1501.54) 6. All other expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses. Hi-tech industry practice. assessed risk of asset management.36 2667.72 833. 2014.36 1157. Europe.12 385.77 1733. media and entertainment and others such as energy.Notes forming part of the Financial Statements The expected return on plan assets is determined considering several applicable factors mainly the composition of the plan assets held.25 542.00 830. companies in telecommunication. companies in retail and consumer packaged goods industries.75 6.93 3. Fixed assets that are used interchangeably among segments are not allocated to primary and secondary segments.77 2999.16 (41.36 crores for the year ended March 31.84 2390. Revenues and expenses directly attributable to segments are reported under each reportable segment. finance and insurance services.57 3184.14 38104.50 (236. resources and utilities.42 (58.14 (32.35 12786. products. historical results of the return on plan assets and the Company’s policy for plan asset management.87 5140.21) 35.34 10975. travel. manufacturing companies. India and Others.04 (137. All other assets and liabilities are disclosed as unallocable. Geographical revenues are allocated based on the location of the customer.09 48426. Business segments are primarily financial services comprising customers providing banking.16 593. life science and healthcare. (` crores) 2013 Experience adjustment On plan liabilities On plan assets Present value of benefit obligation Fair value of plan assets Excess of obligation over plan assets (18.10) 4.00 5.07 5902.63 679.23 14306. Media and Entertainment Others Total (` crores) 4170.83 804.27 11385. Year ended March 31. Financial Services and Insurance Revenue Segment result Unallocable expenses (net) Operating income Other income (net) Profit before tax Tax expense Profit for the year 18682. 2013.23 344.66) 43. Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment.49 420. 31) SEGMENT REPORTING The Company has identified business segments (industry practice) as its primary segment and geographic segments as its secondary segment.33 4781. s-Governance.18 13366. The Company is expected to contribute ` 170.99 6540.55 15030.57 13472. transportation and hospitality.80 494.18 15703. Geographic segments of the Company are Americas (including Canada and South American countries).

59 3645.82 2830. 2013 Other Information Capital expenditure (unallocable) Depreciation and amortisation (unallocable) Other significant non cash expense (allocable) Other significant non cash expense (net) (unallocable) The following geographic segments individually contribute 10 percent or more of the Company’s revenue or segment assets: (` crores) Geographic segments Americas Revenue for the year ended March 31.86 85.45 1671. 2013 (` crores) Particulars Banking. Media and Entertainment 2196.29 3.94 4747.83 4634.88 16. 2013 5247.18 2330.30 4284.66 5.69 518.63 802.44 3309.57 India 3810.26 18.14 34258.17 9094.70 698.59 22863.44 1682.17 7.20 469.76 1.52 1083.82 Telecom.73 1292.06 10449.03 3988.58 52.68 3895.97 750.16 8110.89 9402. Segment assets as at March 31.43 4.45 3189.96 Others Total 1194.12 8788.12 28598.47 2.45 96.27 14413.13 Business Segments Manufacturing Retail and Consumer Packaged Goods 1640.20 561.54 169.52 22076.94 3. Financial Services and Insurance Segment assets Unallocable assets Total assets Segment liabilities Unallocable liabilities Total liabilities Year ended March 31.57 - 162 Unconsolidated Financial Statements .86 688.70 3.55 11395.23 142.75 76.69 43012.99 Previous year figures are in italics. 2013 28077.81 1661.Annual Report 2012-13 Notes forming part of the Financial Statements As at March 31.07 Europe 11996.38 4337.36 18.10 83.

Ltd. Ltd. Tata Consultancy Services Netherlands BV 7. v. vi. 9.. 24. PT Tata Consultancy Services Indonesia Tata Consultancy Services (Thailand) Limited Tata Consultancy Services (Philippines) Inc.f.2012) TCS Solution Center S. Tata Consultancy Services De Mexico S.2012) Tata Consultancy Services De Espana S. ix. vi. 09. Tata Consultancy Services Luxembourg S. TCS FNS Pty Limited i.03. Tata Consultancy Services Malaysia Sdn Bhd Tata Consultancy Services (China) Co.01. Diligenta Limited i. Tata Information Technology (Shanghai) Company Limited Tata Consultancy Services Japan Ltd.A TCS Uruguay S. TCS Inversiones Chile Limitada Tata Consultancy Services Do Brasil Ltda Tata Consultancy Services Chile S. viii. TCS Iberoamerica SA i. ii. iii. 3. ii.A.e. v.03.A. CMC e-Biz Inc i. vii. ii.Notes forming part of the Financial Statements 32) RELATED PARTY DISCLOSURES A) I) II)(A) Related parties and their relationship Holding Company Tata Sons Limited Subsidiaries (Direct holding) 1. Nippon TCS Solution Center Limited (w. v. ii. MS CJV Investments Corporation 5. i.e. 13. Tata Consultancy Services Sverige AB Tata Consultancy Services Asia Pacific Pte Ltd.A. iii. CMC Americas Inc.V. 12. 10. II)(B) Subsidiaries (Indirect holding) i. iii. ii. viii. CMC Limited 2. APOnline Limited Tata America International Corporation Tata Consultancy Services Belgium SA Tata Consultancy Services Deutschland GmbH WTI Advanced Technology Limited Tata Consultancy Services Canada Inc.. vi vii.e. 11. 4. vii.2012) Tata Consultancy Services Danmark ApS (w. 6. iv. viii. Diligenta 2 Limited Unconsolidated Financial Statements 163 . v. De C.A. Tata Consultancy Services Portugal Unipessoal Limitada TCS Financial Solutions Australia Holdings Pty Limited TCS Financial Solutions Australia Pty Limited PT Financial Network Services TCS Management Pty Ltd. iv.f. 8.f. iv.A Tata Consultancy Services Switzerland Ltd Tata Consultancy Services France SAS TCS Italia SRL Tata Consultancy Services Osterreich GmbH (w. MGDC S. Tata Consultancy Services Argentina S.A. iii. TATASOLUTION CENTER S.A. TCS Financial Solution (Beijing) Co. i.C. iv. 16.

23. Rajesh Gopinathan (w.f.2012) IV) Fellow Subsidiaries with whom the Company has transactions s Infiniti Retail Limited s Panatone Finvest Limited s Tata AIG General Insurance Company Limited s Tata AIA Life Insurance Company Limited (formerly Tata AIG Life Insurance Company Limited) s Tata Investment Corporation Limited s Tata Limited s Tata Asset Management Limited s Tata Business Support Services Limited s Tata Capital Limited s Tata Housing Development Company Limited s Tata Consulting Engineers Limited s Tata Sky Limited s Tata Teleservices Limited (upto 25.2013) s Tata Advanced Materials Limited s Tata Interactive Systems GmbH s TATA Africa Holdings (Kenya) Limited s Tata Zambia Limited s Tata International Singapore Pte Limited (w.09.2011) 164 Unconsolidated Financial Statements .2013) s Tata Realty And Infrastructure Limited s e-Nxt Financials Limited s Tata Teleservices (Maharashtra) Limited (upto 25. Chandrasekaran s Mr. 18. 22.03. Mahalingam (upto 09. TCS e-Serve Limited i.12.05.02. 20.e. S. 20.2013) s Tata Industries Limited s Tata International Limited s Tata Autocomp Systems Limited s Drive India Enterprise Solutions Limited s Nova Integrated Systems Limited s Tata Lockheed Martin Aerostructures Limited (formerly Tata Aerostructures Limited) s Tata Capital Housing Finance Limited s TC Travel And Services Limited s Tata Securities Limited s TT Holdings & Services Limited s Tata Capital Financial Services Limited s MMP Mobi Wallet Payment Systems Limited (upto 25. S.08.f. 10.e. Tata Consultancy Services (South Africa) (PTY) Ltd. 21.03.03.03.f. 01.2011) Computational Research Laboratories Limited (w.2013) s Mr.e.08. Inc MahaOnline Limited Retail Full Serve Limited (upto 31. i. Phiroz Vandrevala (upto 13. (w.02. C.2012) Computational Research Laboratories Inc. III) C-Edge Technologies Limited MP Online Limited Tata Consultancy Services Morocco SARL AU Tata Consultancy Services (Africa)(PTY) Ltd. TCS e-Serve International Limited TCS e-Serve America.11.e.f.2011) Key Management Personnel s Mr.2013) s VIOM Networks Limited (upto 26.2012 upto 30. 17. 15.f.e.2013) s Mr. 16.2012) Tata Consultancy Services Qatar S. 19. 16.Annual Report 2012-13 Notes forming part of the Financial Statements 14.03. N. (w. 16. ii.

06 1.98 6.00 150.95 24.84 52.26 0.30 1108.10 3608.76 2057.30 465.78 29. advances (net) Bad debts written off Dividend paid on equity shares Dividend on redeemable preference shares paid Guarantees Remuneration 78.40 0.00 5.91 0.03 2427.34 0.37 1.32 38.17 24226.01 79.95 0.14 16.87 0.00 163.00 16.52 28.33 333.62 30.50 0. services and facilities (including reimbursement) Rent expense Provision / (Write back of provision) for doubtful receivables.92 333.98 124.79 293.62 30.00 146.Notes forming part of the Financial Statements B) Transactions with related parties for the year ended March 31.84) 0.38 1107.40 0.00 200.08 1.63 2453.20 8.00 11.80 11.41 63.10) 0.40 2427.48 132.36 37.14 150.62 66.05 0.99 36.33 339.71 6.74 (0.41 0.35 3.44 338.00 - 3.34 0.00 130.55 1392.84 52.65 Unconsolidated Financial Statements 165 .55 12.81 32.55 3613.02 30896.86 0.90 0.00 2.00 11.80 0.36 31375. 2013 (` crores) Holding Company Subsidiaries Fellow Key Subsidiaries Management Personnel and their relatives 57.81 1.52 2457.24 (5.14 0.82 22.14 (4.44 6.76 1787.06 0.01 0.15 13.92 2.90 4.80 11.65 - 78.08) 0.43 36.02 3.61 49.24 163.57 13.63 0.65 Total Brand equity contribution Purchase of fixed assets Loans and advances given Loans and advances repaid Inter-corporate deposits placed Inter-corporate deposits matured Purchase of investment Redemption of investment Revenue (including reimbursements) Interest income Dividend income Rent income Other income Purchase of goods.00 100.08 0.79 24.84 24693.55 49.40 3.47 1493.29 4.34 0.19 85.00 116.31 14.67 2453.00 479.08 1.43 15.40 33.65 15.04 0.80 61.76 2057.78 29.39 22.02 356.63 3.65 2096.80 3.00 200.00 1392.18 2.

S.00 163.00 50.71* 1293.68 13.01 21.52 0.24 27. Inter-corporate deposits placed Tata Realty And Infrastructure Limited TCS e-Serve Limited Tata Capital Limited Inter-corporate deposits matured Tata Realty And Infrastructure Limited TCS e-Serve Limited Tata Sky Limited Tata Capital Limited Purchase of investments Tata Sons Limited Tata Consultancy Services Qatar S.41 21.00 16.39 1406.15 4627.00 30. Previous year figures are in italics.66 6236.15 79. income received in advance.00 2. S.00 100. C.70 2. other assets (net) Trade payables. 2013.C. loans and advances.Annual Report 2012-13 Notes forming part of the Financial Statements C) Balances with related parties as at March 31.74 13.05 6021.42 3389.31 200.66 34.33 866.44 282.77 2013 Purchase of fixed assets CMC Limited Tata Consulting Engineers Limited Tata Realty And Infrastructure Limited Loans and advances given during the year Tata Sons Limited Tata Consultancy Services Qatar S.29 3.90 825.77 0.92 25638.91 1105.79 150.78 53. S.90 - 6627. unbilled revenue.40 625.00 2.67 5644.00 200. 2013 (` crores) Holding Company Subsidiaries Fellow Key Subsidiaries Management Personnel and their relatives 241.93 1186.01 6. Revenue (including reimbursements) Tata America International Corporation 3.34 11. TCS Financial Solutions Australia Pty Limited Tata Consultancy Services Morocco SARL AU Computational Research Laboratories Limited Loans and advances repaid during the year CMC Limited Tata Teleservices Limited TCS Financial Solutions Australia Pty Limited Tata Consultancy Services Qatar S.94 94.44 20051.01 33.00 100.44 4627.90 23. C.00 Total Trade receivables.16 0.42 3389.00 150.57 22.38 10.42 crores has been converted into equity during the year ended March 31. D) Disclosure of material transactions / balances with related parties (` crores) 2012 13.26 166 Unconsolidated Financial Statements .00 16. advances from customers Guarantees Investment in debentures 148.33 666.66 *An amount of ` 504.79 6.

23 0.09 0.97 0.80 186.73 35.81 15.Chandrasekaran Mr.A. S.26 11.33 3608.92 200.02 20.22 13. Tata Consultancy Services Portugal Unipessoal Limitada Tata Teleservices (Maharashtra) Limited Dividend paid on equity shares Tata Sons Limited Guarantees given during the year Diligenta Limited Tata America International Corporation Remuneration to Key Management Personnel Mr.33 0.02 0.05 0.50 1899. N.44 0.86 0.30 0.61 3.36 273.43 8.25 19.18 2453.76 136.34 (5.01 3.77 17.90 (0.Notes forming part of the Financial Statements (` crores) 2012 79.39 2013 Interest income Tata Sons Limited TCS Financial Solutions Australia Pty Limited Panatone Finvest Limited Dividend income Tata America International Corporation TCS e-Serve Limited CMC Limited Tata Consultancy Services Canada Inc.68 46.81 19.04 0.58 228.63 1213.26 269.12) 0.11 17.87 14.05 2.35 0.02 0.76 15.01 0.27 0.2013) 85.02.12 25.49 116.23 0.85 0.60 535.25) 7.08 0.12) (0. Mahalingam (upto 09.67 239.01 5.35 35.82 1767. TT Holdings & Services Limited Tata America International Corporation Rent expense CMC Limited Diligenta Limited Provision / (Write back of provision) for doubtful receivables.92 788.69 4. Diligenta Limited Rent income CMC Limited WTI Advanced Technology Limited TCS e-Serve Limited APOnline Limited C-Edge Technologies Limited Purchase of goods. advances (net) Tata Consultancy Services Morocco SARL AU Tata Teleservices Limited TATA Africa Holdings (Kenya) Limited Bad debts written off Tata Consultancy Services Do Brasil Ltda Tata Teleservices Limited Tata AIA Life Insurance Company Limited Tata Consultancy Services De Espana S.21 0.53 Unconsolidated Financial Statements 167 . Other income TCS Financial Solutions Australia Pty Limited Tata Consultancy Services Canada Inc.15 0.10 0. services and facilities (including reimbursement) CMC Limited CMC Americas Inc.61 557.

16 76.60 1175.Annual Report 2012-13 Notes forming part of the Financial Statements (` crores) 2012 3532. loans and advances.66 200.71 43.84 6.27 76.52 2303. 2013 484.38 crores (Previous year: ` 359.20 85.17 151.07 20.92 898. income received in advance.68 403.40 185.06 crores) in respect of cancellable opearting leases have been charged to the statement of profit and loss.64 185.73 316.39 116.32 3076. unbilled revenues.21 165.35 2013 Trade receivables.97 40. advances from customers Tata America International Corporation TCS Financial Solutions Australia Pty Limited CMC Limited Tata Consultancy Services Netherlands BV CMC Americas Inc Guarantees outstanding Diligenta Limited Tata America International Corporation Investment in debentures Tata Sons Limited Panatone Finvest Limited 33) OBLIGATIONS TOWARDS OPERATING LEASES Non-cancellable operating lease obligation Not later than one year Later than one year but not later than five years Later than five years Total 4162.07 453.88 1208.87 67.08 150. 2012 365.23 165.19 80. 2013 (` crores) As at March 31.23 22.37 3072.35 crores) in respect of obligation under non-cancellable operating leases and ` 287.37 20.73 41.40 111.41 625.91 1038.25 85.33 200.99 As at March 31.48 2910.37 7. other assets (net) Tata America International Corporation TCS Iberoamerica SA TCS Financial Solutions Australia Pty Limited Trade payables.82 145.41 113. 34) OBLIGATIONS TOWARDS FINANCE LEASES Assets acquired under finance lease (i) Minimum lease payments: Not later than one year Later than one year but not later than five years Later than five years (ii) Total Present value of minimum lease payments: Not later than one year Later than one year but not later than five years Later than five years Add : Future finance charges Total As at March 31.20 52.87 89.84 168 Unconsolidated Financial Statements .00 (` crores) As at March 31.00 Rent expenses of ` 505.22 crores (Previous year ` 276.70 666.58 37.27 100. 2012 21.02 1413.95 107.

55 crores) (GBP 376.996 55.42 million) (March 31.10 crores).51 crores (March 31.23 12764.98 25.22 1. 2012: ` 8.90 The Company has provided guarantees aggregating ` 2910. 2012: ` 3068.70 12786.85 crores).00 (` crores) 2012 10975. which is to be adjusted to the cost of investment of the subsidiary. 37) CONTINGENT LIABILITIES As at March 31.52 0.57 10950.75 million) to third parties on behalf of its subsidiary Diligenta Limited.56 per unit of 1000 units aggregating ` 4.72.77 crores (Previous year: ` 2.59 4627.11 195. 2012: ` 321. 2013 Claims against the Company not acknowledged as debts Income tax demands Indirect tax demands Guarantees given by the Company on behalf of subsidiaries (See (a) and (b) below) (a) 23.42 2.44 3389.85 crores (March 31. In addition to the above. The Company does not expect any outflow of resources in respect of the above. The Company is required to pay to the seller of TCS e-Serve Limited.73 62. (b) The Company has provided guarantees aggregating ` 1208.34 22.06 crores) for attest and other professional services rendered have been paid to firms of chartered accountants in which some of the partners are also partners in the firm of statutory auditors.96 0. amounts received by the subsidiary from tax authorities as refund against taxes paid aggregating ` 347.52 0.20.996 65. 2012 21. The Company has a purchase commitment towards India Innovation Fund for the uncalled amount of balance ` 47389.00 (` crores) 2012 2.88 crores (GBP 353. The Company does not expect any outflow of resources in respect of the above.68 Service tax credit has been / will be availed.54 0. The Company has undertaken to provide continued financial support to its subsidiaries APOnline Limited and TCS FNS Pty Limited.14 0. fees amounting to ` 1.20.Notes forming part of the Financial Statements 35) EARNINGS PER EQUITY SHARE (EPS) 2013 Net profit for the year Less : Preference share dividend (including dividend tax) Amount available for equity shareholders Weighted average number of shares Earnings per share basic and diluted (`) Face value per Equity share (`) 36) AUDITOR’S REMUNERATION 2013 For services as auditors.41 crores (USD 222.42 2.49 1381.72.13 0. 2012: Nil ) to third parties on behalf of its subsidiary Tata America International Corporation.97 61.98 crores).65 million) (March 31. including quarterly audits For Tax audit For Other services Reimbursement of out-of-pocket expenses For service tax 2. 2012: ` 1682.67 2589.95 1. c) d) Unconsolidated Financial Statements 169 .42 (` crores) As at March 31. 38) CAPITAL AND OTHER COMMITMENTS a) b) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) ` 3328.41 195.74 crores (March 31.

75 crores) whose fair value showed a gain of ` 51. in accordance with its risk management policies and procedures. the Company has outstanding foreign exchange forward contracts and currency option contracts with notional amount aggregating to ` 10427.95 crores (March 31. which have been designated as Cash Flow Hedges.46 (79.S.59 15.81) 62.00 217.35 (723. As of balance sheet date.05 crores recognised in Hedging reserve as of March 31. 2012. as at: March 31.00 Fair Value (` crores) Foreign Currency U. enters into foreign currency forward and currency option contracts to manage its exposure in foreign exchange rates. of Contracts Notional amount of Currency Options contracts (million) 1090.64 3.49 Year ended March 31.22) 716. 2013 and year ended March 31. The movement in Hedging reserve during the year ended March 31.56 14.63 crores (March 31. for derivatives designated as Cash Flow Hedges is as follows: (` crores) Year ended March 31. the Company has net foreign currency exposures that are not hedged by derivative instruments or otherwise amounting to ` 375.81 crores). 2012: ` 8222.96) 96. 2013 Balance at the beginning of the year Changes in the fair value of effective portion of discontinued / matured Cash Flow Hedges during the year (Gains) / losses transferred to statement of profit and loss on occurrence of forecasted hedge transaction Changes in the fair value of effective portion of outstanding Cash Flow Hedges Balance at the end of the year (25.66 - 81 33 21 6 29.00 123. 2012: loss of ` 92.29) (25.00 30.66 18.50 210. 2014. Dollar Sterling Pound Euro Australian dollar 47 12 15 - (8.59) 64. 2012 Notional amount of Currency Options contracts (million) 2185.20 (30.58 55.Annual Report 2012-13 Notes forming part of the Financial Statements 39) DERIVATIVE FINANCIAL INSTRUMENTS The Company.00 102.00 Fair Value (` crores) No.23 crores) 170 Unconsolidated Financial Statements . These contracts are for a period between one day and eight years.21 crores as on March 31. of Contracts March 31.25 crores (March 31.34 Net gain on derivative instruments of ` 37. The Company has following outstanding foreign currency option contracts. 2012: Exchange loss of ` 192.96) In addition to the above Cash Flow Hedges. 2012 11. The counter party is generally a bank. 2012: ` 338. 2013. Exchange gain of ` 271. 2013 (March 31.83 crores) on foreign exchange forward and currency option contracts for the year ended March 31. 2013 have been recognised in the statement of profit and loss. 2013 No. is expected to be reclassified to the statement of profit and loss by March 31.

2013 Principal Amount due to vendor Principal amount paid (includes unpaid) beyond the appointed date Interest due and payable for the year Interest accrued and remaining unpaid (includes interest disallowable of ` 0.30 Interest 0.46 29.27 0.02 49.81 (` crores) 2012 34792.97 501. 2012 Principal 0.70 crore)) 5.18 773.22 3148.75 496.97 crore (Previous year: ` 0.76 2054.27 0.53 114.53 2188.77 182.60 2374.90 2987.17 7091.08 148.74 Interest 0.52 563.22 130.31 0.97 As at March 31.02 10.03 125. 41) INCOME IN FOREIGN CURRENCY 2013 (a) (b) (c) (d) (e) Consultancy services FOB value of exports of equipment and licenses Interest income Dividend income Other income (net) 44721.60 4.Notes forming part of the Financial Statements 40) MICRO AND SMALL ENTERPRISES (` crores) As at March 31.55 147.64 5533.42 51.08 0.38 (` crores) 2013 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) Royalty Legal and professional fees Interest Overseas employee costs Overseas business expenses Services rendered by business associates and others Software.46 1049.01 553.96 185.30 827. hardware and material cost Communication expenses Travelling and conveyance expenses Other operating expenses Foreign taxes 2.02 144.70 Dues to Micro and Small enterprises have been determined to the extent such parties have been identified on the basis of information collected by the management.81 42) EXPENDITURE IN FOREIGN CURRENCY Unconsolidated Financial Statements 171 .25 3.05 31.48 2012 2.

30.44.03 87.21. SUB-ASSEMBLIES AND COMPONENTS.00 74.00 50.00 % 2012 ( ` crores) % Consumption figures shown above are after adjusting excess and shortages ascertained on physical count.44 21. 2012 and interim dividends for the year ended March 31.51 - 172 Unconsolidated Financial Statements . 2013.815 461.42.00 0.58 100.02 0.34 88.00 9.02 50.339 29. if any.48 79. The particulars of dividends declared and paid to non-resident shareholders for the year ended March 31.01 0.09.27 2012 201. sub-assemblies and components Imported: Indigenous: 18.42 0.01 44) VALUE OF IMPORTED AND INDIGENOUS RAW MATERIALS.825 28.42 25.78 78.24. are as under: Number of non-resident shareholders Number of equity shares held Gross amount of dividend (` crores) 2013 Final dividend for 2010-11 declared in June 2011 Interim dividend declared in July 2011 Interim dividend declared in October 2011 Interim dividend declared in January 2012 Final and special dividend for 2011-12 declared in June 2012 Interim dividend declared in July 2012 Interim dividend declared in October 2012 Interim dividend declared in January 2013 10171 10276 10750 10722 10437 10459 10270 10382 25.04 100.01 0.02 Stores and spare parts Imported: Indigenous: 0.27 88.19 227.25.03 33.198 26.82.24 2.86.00 100. unserviceable items.81.96 66.01 (` crores) 2012 8.78.13.62 6.188 29.44.942 29.70.49 0. in foreign currencies on account of dividends have been made by / on behalf of non-resident shareholders.56 100. 2012: ` Nil ) in foreign currencies on account of dividends during the year and does not have information as to the extent to which remittance. STORES AND SPARE PARTS CONSUMED 2013 ( ` crores) Raw materials.99 75.54 11.35 352.593 25.40 25.65 77. 45) REMITTANCE IN FOREIGN CURRENCIES FOR DIVIDENDS The Company has remitted ` Nil (March 31.66.50. sub-assemblies and components Capital goods Stores and spare parts 20.01 0.Annual Report 2012-13 Notes forming part of the Financial Statements 43) VALUE OF IMPORTS CALCULATED ON CIF BASIS 2013 Raw materials. etc.198 25.

906 1 5.803 2. TCS Inversiones Chile Limitada Tata Consultancy Services Chile S.A. 65.25 6.91.31.32 5.424 4.98 crores).11 251. of Shares * TCS FNS Pty Limited has made the following investments in its subsidiaries: (a) (b) TCS Financial Solutions Australia Holdings Pty Limited TCS Management Pty Ltd.50. 49) On February 22.58 315.67. 2013: (` crores) Subsidiary Company Outstanding as at March 31. a class action suit filed in a United States of America Court relating to payments to employees on deputation.712 TCS FNS Pty Limited * ** TCS Iberoamerica SA has made the following investments in its subsidiaries: (a) (b) (c) (d) (e) (f) (g) TCS Solution Centre S. The amount of settlement has been included in ‘Other expenses’..A. The appointed date for the above scheme proposed is April 1.Notes forming part of the Financial Statements 46) DISCLOSURE UNDER CLAUSE 32 OF THE LISTING AGREEMENT Amount of loans and advances in nature of loans outstanding from subsidiaries as at March 31. 2012 have accorded consent for the merger of TCS e-Serve Limited together with the de merger of TCS e-Serve International Limited’s SEZ undertaking with the Company. the Company entered into an agreement to settle for a sum of ` 161.000 Previous year figures are in italics. vide note no. 48) The Board of Directors at their meeting held on October 19. 2013 52.93 Maximum amount outstanding during the year 255. 2013 respectively. 47) Research and development expenditure aggregating ` 151. was incurred during the year.A.63 crores. 2013. including capital expenditure.000 4.51 6. Unconsolidated Financial Statements 173 . 26.A.91 246. The Court has granted preliminary approval to the settlement agreement.27.58.613. 50) Previous year figures have been recast / restated. Tata Consultancy Services Argentina S.20 No.A. TCS Uruguay S.88 Tata Consultancy Services Morocco SARL AU 6.40.V.00.20 TCS Iberoamerica SA ** 47. 15.36 crores (Previous year: ` 128.74 52.767 8. De C.21. Tata Consultancy Services Do Brasil Ltda Tata Consultancy Services De Mexico S.

39 38.91 12.00 India .Japan .36 6.01 38. 15 Tata America International Corporation 16 MS CJV Investments Corporation 17 Tata Consultancy Services Asia Pacific Pte Ltd.04 87.87 2. .73 255.72 1.32 0.39 25.46 1.16) 31.U.000000 2.000000 10.74 186.Singapore .68 27.55 (5.02 17.19 196.22 633.04 85.63 54.548385 3.98 1. 267.49 82.70 6.59 APOnline Limited INR 1.39 142.014.329800 1.22 1.56 9.33 354.Malaysia .S.23 130.42 379. .000000 1.China .30 802.58 5.309648 0.53 41.74 3.909.05 48.65) 76.48 47.33 0.40 2.90 4.319435 15.16 U.25 506.73 49. 12 Diligenta Limited 13 Diligenta 2 Limited 14 Tata Consultancy Services Canada Inc..82 54.04) (21.25 280.48 1.71) 8.854.30 U.86 79.31 1. 1956 relating to subsidiary companies (` crores) Reporting currency Profit after taxation Exchange Capital rate Reserves Total Total Investment Turnover Profit Provision assets liabilities other than before for investment taxation taxation in subsidiary 43.88 42.05 India 1. 27 Tata Consultancy Services Deutschland GmbH 28 Tata Consultancy Services Sverige AB 29 Tata Consultancy Services Netherlands BV 30 TCS Italia SRL 31 Tata Consultancy Services Luxembourg S.83 7.314174 69.66 (0.15) 50.61 1.U.81 36.78 3.04 739.82 70.55 161.73 2.55 13. 20 Tata Consultancy Services Malaysia Sdn Bhd 21 Tata Information Technology (Shanghai) Company Limited 22 PT Tata Consultancy Services Indonesia 23 Tata Consultancy Services (Philippines) Inc.78 4.000000 1. 9 TCS e-Serve Limited 10 TCS e-Serve International Limited 11 TCS e-Serve America.69 100.03 68.49 77.70 270.39 0.74 60.94 1.79 198.05 74.23 Belgium 32.51 69.10 254.96 3.85 415.A.30 11.09 64.29 12.51 66.73 39.S.13 1.18 13.37 0. 1 INR INR INR INR INR USD USD INR INR USD GBP GBP CAD USD USD USD CNY JPY MYR CNY IDR PHP THB JPY EUR EUR SEK EUR EUR EUR 69.01 28.52 (20.742706 96.329800 7.977.U. 62.S.16 534. Inc.319435 0.39 4.66 0.08 457.12 Germany 33.14 0.57 118.89 118.61 0.India .16 56.34 20.33 1.A.70 India .14 54.07 (9.63 5.09 2.07 304.73 16. .82 1.91 300.26 49.A.174 Statement pursuant to general exemption received under Section 212(8) of the Companies Act.India .319435 69.A.04 0.49 (0.14 5.76 10.44 38.665.49 2.98 137.52 0.16 25.02 17.45 1.A.38 Netherlands .48 1.35 33.China .53) 4. 19 Tata Consultancy Services Japan Ltd.84 (9.99) 54.55 1.66 9.79 36.231.73 791.U.78 1.31 66.38 (17.891.81 202.01 11.687.India 53.Philippines .17) 1.34 66.74 0.06 0.09 39.86 552.47 257.005593 0.62 251.89 1.50 366.03 540. 24 Tata Consultancy Services (Thailand) Limited 25 Nippon TCS Solution Center Limited 26 Tata Consultancy Services Belgium S.34 2.S.51 36.416380 37.08 126.K.19 328.93 13.57 1.06 33.70) (21.41 54.57 358.62 2.63 604.77 1.39 3.75 1.67 245.51 2 MP Online Limited 3 C-Edge Technologies Limited 4 WTI Advanced Technology Limited 5 MahaOnline Limited 6 CMC Limited 7 CMC Americas Inc.09 1.94 316.30 631.854576 1.96 1.Thailand . .082.23) 40.36 36.17 5.61 (18.329800 8.55 (28.64 364.08 Canada 543.11 45.07 0. Ltd.86 0.25 38.329800 23.309648 353.47 3.73 78.98 135.36 11.319435 69.A.35 33.927.75 14.Luxembourg Proposed Country dividend Annual Report 2012-13 Sr. 8 CMC eBiz Inc.00 46.86 230.28 8. 18 Tata Consultancy Services (China) Co.37 14.75 33.17 5.000000 12.66 1.578592 10.75 5. .65 227.Indonesia .85 17.000000 10.196.25 1.A.India .21 21.47 35.Japan 63.005.22 (5.71 16.36 8.25 209.16 662.38 19.98 0.32 508.53 (28.17 148.648.000000 4.01 161.55 53.24 71.19 1.87 18.38 54.329800 0.60 122.268.00 20.319435 8.167.24 8.54 Sweden 94.80 308.47) 63.00 461.03 India 27.40) 285.45 1.73 51.23 3.55 (43.24 0. .329800 1.041.28 4.330634 1.44 36.73 20.000000 30.14 178.742706 35.88 13.53) 6.75 30.098.63 199.U.53 54.Italy .56 1.23 3.859.21) (28.33 1.42 11.55 76.11 381.00) 8.38 237.30 170.S. Name of the subsidiary company No.46 30.04 103.15 119.57 13.74 8.69 82.93 251.K.31 0.86 118.50 8.578592 9.54 1.

69 6.66 13.95 534.44 27.90 (0.00 (0.79) 1.01 36.86 64.319435 0.08 56.55 (33.17 (1.89 217.77 (0.93 173.879163 0.10 (0.02 7.08 8.04 0.396397 2.01) 227.A.24 (0.C. 32 EUR EUR DKK EUR EUR MAD ZAR ZAR AUD CNY AUD AUD AUD USD UYU UYU ARS BRL MXN CLP CLP USD UYU MXN QAR USD 14.63 23.919644 8.21 8.08 0.08 25.75 71. (w.51 47.75 Proposed Country dividend Sr.54 (10.96 756.22 Switzerland .e. Indian rupee equivalents of the figures given in foreign currencies in the accounts of the subsidiary companies.Mexico .87 (0.30 139.37 98.978747 254.114899 144.Chile .Denmark .65 57.36) 36.S.81 23.C.33 (0. 49 Tata Consultancy Services Argentina S.78 14.06 71.Argentina .Indonesia .07 2. Ltd.19 71.95 271.20 6.01 (38.2012) Notes: 1.Qatar . 58 Computational Research Laboratories Inc.67 1.China . 2012 respectively . Name of the subsidiary company No.23 South Africa 2.45 335.865249 10.04) 28.06 27.03.25 0.638817 78.11 650.99 (4.11) 3.22 3.38) 56.879163 524.30 56.04) 30.54 62. De C.89) 8.62 12. 55 TCS Uruguay S.Morocco 1.33) 73.46 9.98 0.61 16.03) 38.66 160.A.18 144.29 165.81 10.01 52.31 29. 33 Tata Consultancy Services France SAS 34 Tata Consultancy Services Osterreich GmbH 35 Tata Consultancy Services Danmark ApS 36 Tata Consultancy Services De Espana S.638817 211.U.Chile .33) 145.08 319.17) 69.57) (0.95 0.19 8.742706 1. 2012 and October 1.42 (62.69 8.29 267. 53 TCS Inversiones Chile Limitada 54 TATASOLUTION CENTER S.98 (15.04 367.79) 6.73 4.A.58) Tata Consultancy Services Switzerland Ltd.S.80 0. 37 Tata Consultancy Services Portugal Unipessoal Limitada 38 Tata Consultancy Services Morocco SARL AU 39 Tata Consultancy Services (Africa) (PTY) Ltd.53 7.14 (16.87 9.879163 41.93 10.87 151.01 106.84 (43.329800 16.865249 8.78 56.34 0.20 37. 46 PT Financial Network Services 47 TCS Iberoamerica SA 48 TCS Solution Center S.26 (36.Uruguay .19 215.Mexico .96 47.08) 43.55) 69.Brazil .72 58.Portugal .57 61.36 4. 50 Tata Consultancy Services Do Brasil Ltda 51 Tata Consultancy Services De Mexico S.44) 56.15 77.608181 55.26 225.67 0.Australia .50 69.48 347.47 6.36) (10.88) 0.Australia .90) 9.02 2.f.21 1.98 215.34) 0.33 (36.10) 0.23 (0.03) 31.54 440.f.43 1.45) 10.03 3.95 35.02) 259.Ecuador .23 0.45) 2.59 1.04 7.95 0.2013 175 2.396397 1.93 39. 43 TCS Financial Solutions Australia Holdings Pty Limited 44 TCS Financial Solutions Australia Pty Limited 45 TCS Management Pty Ltd.85 55.A.08 (12. appointed date April 1. Retail FullServe Limited and Computational Research Laboratories Limited have been amalgamated with the Company w.44 124.25 1.20 0.50 5.329800 4.32 150. 1956 relating to subsidiary companies (` crores) Reporting currency Profit after taxation Exchange Capital rate Reserves Total Total Investment Turnover Profit Provision assets liabilities other than before for investment taxation taxation in subsidiary 330.41 1.26 293.329800 0.38) (0.43 (0.A..91 214.31 199.01 70.45 259.64 (0.922490 54.12 54. are based on the exchange rates as on 31.27 448.Australia .08 841.638817 1.Uruguay .80 (0.02) 35.24 (202.Statement pursuant to general exemption received under Section 212(8) of the Companies Act.08.44 (0.88 0.53 327.03 (4.Austria . 57 Tata Consultancy Services Qatar S. 56 MGDC S.84 (43.e.11 South Africa .319435 0.90 (22.24 (30. CHF 56.06) 43.261646 9.638817 0.02) 161.A.21 4. 16.51 2.02 15.14 389.77 65.45 14. 40 Tata Consultancy Services (South Africa) (PTY) Ltd.12 (1.08 0.07 97.37 6.74 34.30 0.Uruguay .00) 201.France .A.75 5.319435 0.80 0.05 1.21 0. 41 TCS FNS Pty Limited 42 TCS Financial Solutions Beijing Co.11 150.Spain .07 54..V.53 220.43) 5.114899 141.89 11.319435 2.63 26.08 40.08) 5.69 2.48 222.50) (10.A.297476 0.75 69. 52 Tata Consultancy Services Chile S.56 46.58) 56.64 1.77 (18.01 (0.54 321.Australia .13 21.10 0.

 2. of shares held DP ID No. Nirmal Building. This Proxy must be lodged with the Company at its Registered Office at 9th Floor. New Marine Lines. Mumbai 400 020 Folio No. Nariman Point. not less than FORTY-EIGHT HOURS before the time for holding the aforesaid meeting. Name of the Member Name of the Proxyholder 1. JUNE 28. 2013 at 3. New Marine Lines. Client ID No. Sir Vithaldas Thackersey Marg. DP ID No. Nirmal Building. June 28. Mumbai 400 021.30 P. Client ID No. Only Member/Proxyholder can attend the meeting. Sir Vithaldas Thackersey Marg.M. at Birla Matushri Sabhagar. Signed this day of 2013. Nirmal Building. Mumbai 400 021 PROXY FORM I/We of in the district of being a member(s) of the above named Company. 19. Those Members who have multiple folios with different jointholders may use copies of this Attendance slip/Proxy. at Birla Matushri Sabhagar. ** against ** Strike out whichever is not desired. Nariman Point. Signature Signature     Registered Office: 9th Floor. the Proxy will act as he thinks fit. Unless otherwise instructed. Mumbai 400 021  ATTENDANCE SLIP (To be presented at the entrance) 18TH ANNUAL GENERAL MEETING ON FRIDAY. No. Mumbai 400 020 and at any adjourment thereof.30 p. Member/Proxyholder should bring his/her copy of the Annual Report for reference at the meeting. 19. 2. hereby appoint of in the district of in the district of or failing him/her of as my/our proxy to attend and vote for me/us and on my/our behalf at the eighteenth Annual General Meeting of the Company to be held on Friday. NOTES: 1. . 2013 AT 3.m. Nariman Point. Signature Affix 15 Paise Revenue Stamp ** in favour of This form is to be used ___________________ the resolution.Registered Office: 9th Floor. Folio No.

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