Registration Date: January 19, 1995

PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY: Computer Programming, Consultancy and Related Activities 10
PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES
Tata Sons Private Limited: Holding co 72% else 50 subsy across globe with about 100 stake
SHAREHOLDING PATTERN
72% above and no foreign investor
Institutions: 23%, Non-Institutions 4%
Shares held by Custodians and against which Depository Receipts have been issued: None
Shareholding Pattern of Top ten shareholders: Life Insurance Corporation of India: 4.1% shares agst 4.2% last year
INDEBTEDNESS: only 4 crores
REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
Rajesh Gopinathan: 13.37 Crs, Ganapathy Subramaniam : 10 crs
Consolidated Financial
Statements

Key audit matters

1. Revenue recognition – Fixed price contracts
The Group inter alia engages in Fixed-price contracts, wherein, revenue is recognized using the percentage of comp
2. Evaluation of key tax matters
The Group operates in multiple jurisdictions and is subject to periodic challenges by local tax authorities on a range
3. Adoption of Ind AS 116 Leases
As described in Note 9 to the consolidated financial statements, the Group has adopted Ind AS 116 Leases (Ind AS 11
Ind AS 116 introduces a new lease accounting model, wherein lessees are required to recognise a right-of-use (ROU
Notes to consolidated accounts
These consolidated financial statements have been prepared on historical cost basis except for certain financial inst
Assets and liabilities of entities with functional currency other than the functional currency of the Company have be
influence or joint control is lost, the cumulative amount of exchange differences related to that foreign operation re

Revenue for fixed priced contracts is recognised using percentage-ofcompletion method. The Group uses judgemen

Impairment of Financial assets (other than at fair value) The Group assesses at each date of balance sheet whether a
a loss allowance. The Group recognises lifetime expected losses for all contract assets and / or all trade receivables

Other financial liab:

TCS asia pacific of additional 15% stake in its JV with Mitsubishi Corporation in Tata Consultancy Services Japan, Ltd.

Foreign currency
The Group has entered into derivative instruments not in hedging relationship by way of foreign exchange forward,

Exchange loss of Rs 461 crore and exchange gain of Rs. 408 crore on foreign exchange forward, currency options and

Net foreign exchange gains include loss of Rs. 64 crore and gain of Rs.30 crore transferred from cash flow hedging re

Net loss on derivative instruments of Rs. 23 crore recognised in cash flow hedging reserve as at March 31, 2020, is e

Financial risk management:

1. Market risk
Definition: It is the risk that fair value or future cash flows of a financial instrument will flacuate because of changes
Such change in the values of the FI may result in change in forex rates, interest rates, credit, liquidity and other mar
The group's exposure to the market risk is primarily on account of Forex risk.
Forex risk:
Flactuation can have impact on the P&L and OCI so to hedge the FE, group uses derivative instruments .
Also any movement in the functional currencies of various operations of the group against major foreign currencies

The FE rate senstivity is calculated by adding net foreign exchange rate exposure and a simultaneous parallel foreign
The following table sets forth information relating to unhedged foreign currency exposure as at March 31, 2020:

Impact of COVID-19 (Global pandemic) : No impact on their business

Interest rate risk: Group is into fixed rate interest bearing hence not exposed to this.

Credit risk
Definition: It is the risk of financial loss arising from counter party failure to repay or service debt according to the co
Credit risk enclose both direct risk of default and risk of deteriotion of creditworthiness and concentration of risks.
Credit risk is controlled by analyzing credit limits and creditworthiness of customers on continous basis.

FI that has credit risks consists of trade receivables, unbilled revenue, loan receivable, investments , derivative FI, CC
Exposure to credit risk
The carrying amount of financial assets and contract assets represents the maximum credit exposure. The maximum
Rs. 88,291 crore and Rs. 89,172 crore as at March 31, 2020 and 2019, respectively, being the total of carrying amoun
The exposure is diversified and less than 10% to a single customer.

Liquidity risk
Definition:
Risk of not meeting the financial obligation. Objective of liquidity risk management is to maintain sufficient liquidity
Group has sufficient cash flows from operations to meet its financial obligations incl lease liabilities
uted as per the input method based on the Group’s estimate of contract costs

rs during the normal course of business including transfer pricing and indirect tax matters. These involve significant judgment b

urrent year. The application and transition to this accounting standard is complex and is an area of focus in our audit since the G
a lease liability arising from a lease on the balance sheet. The lease liabilities are initially measured by discounting future lease p
d defined benefit plans which are measured at fair value or amortised cost at the end of each reporting period. Historical cost is
d using exchange rates prevailing on the balance sheet date. Statement of profit and loss of such entities has been translated u
OCI is reclassified to statement of profit and loss as part of the gain or loss on disposal.

e the future cost-to-completion of the contracts which is used to determine the degree of the completion of the performance o

sset or a group of financial assets is impaired. Ind AS 109 requires expected credit losses to be measured through
constitute a financing transaction. In determining the allowances for doubtful trade receivables, the Group has used a practical

, 2019, pursuant to exercise of put option by Mitsubishi Corporation, TCS asia pacific of additional 15% stake in its JV amount o

tions and futures contracts. As at March 31, 2020 and 2019, the notional amount of outstanding contracts aggregated to `40,2

ntracts that do not qualify for hedge accounting have been recognised in the consolidated statement of profit and loss for the y

he years ended March 31, 2020 and 2019, respectively

be transferred to the statement of profit and loss by March 31, 2021. The maximum period over which the exposure to cash flo
 Group's revenue in International business.

ates shift of all the currencies by 10% against the respective functional currencies of Tata Consultancy Services Limited and its
2019

erms of obligation.

r financial asset.

osure to credit risk was

es with Banks Bank deposits, investments, trade receivables, unbilled receivables,loan receivables,contract assets and other fin

g funds are available for use as per requirements.

 ese involve significant judgment by the Group to determine the possible outcome of the uncertain tax positions, consequently

ea of focus in our audit since the Group has a large number of leases with different contractual terms
ured by discounting future lease payments during the lease term as per the contract/ arrangement. Adoption of the standard i
reporting period. Historical cost is generally based on the fair value of the consideration given in exchange for goods and servic
uch entities has been translated using weighted average exchange rates. Translation adjustments have been reported as foreig

e completion of the performance obligation.

e measured through
es, the Group has used a practical expedient by computing the expected credit loss allowance for trade receivables based on pr

onal 15% stake in its JV amount of `227 crore (JPY 3,500 million).

ing contracts aggregated to `40,298 crore and `34,939 crore, respectively and the respective fair value of these contracts have

tement of profit and loss for the years ended March 31, 2020 and 2019, respectively.

ver which the exposure to cash flow variability has been hedged is through calendar year 2020.
nsultancy Services Limited and its subsidiaries.

bles,contract assets and other financial assets.

ertain tax positions, consequently having an impact on related accounting and disclosures in the consolidated financial stateme

ement. Adoption of the standard involves significant judgements and estimates including, determination of the discount rates a
n in exchange for goods and services. Fair value is the price that would be received to sell an asset or paid to transfer a liability
ents have been reported as foreign currency translation reserve in the statement of changes in equity. When a foreign operatio

for trade receivables based on provision matrix

fair value of these contracts have a net loss of `380 crore and net gain of `288 crore.
he consolidated financial statements.

ermination of the discount rates and the lease term.

sset or paid to transfer a liability in an orderly transaction _x001E_!03!!*ƫ)_x001C_.'!0ƫ,_x001C_.0%_x001F_%,_x001C_*0/ƫ_x0
n equity. When a foreign operation is disposed off in its entirety or partially such that control, significant
1C_.0%_x001F_%,_x001C_*0/ƫ_x001C_0ƫ0$!ƫ)!_x001C_/1.!)!*0ƫ date.
, significant