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"The standalone financial statements are prepared based on historical cost, with certain financial instruments and defined benefit plans measured at fair value or amortised cost at each reporting period. Historical cost reflects the fair value of consideration exchanged for goods and services. Fair value represents the price received to sell an asset or paid to transfer a liability in an orderly transaction among market participants at the measurement date. Assets and liabilities are classified as current or non-current according to the Company's operating cycle, which is considered to be 12 months. The statement of cash flows is prepared using the indirect method. The financial statements are presented in Indian Rupees, the Company's functional currency. Foreign currency transactions are recorded at the exchange rates on the transaction date, and monetary assets and liabilities in foreign currencies are retranslated at the balance sheet date, with exchange gains and losses recognized in the profit and loss statement. The preparation of these financial statements requires management to make estimates and assumptions that impact reported asset and liability balances, contingent liabilities, and income and expense amounts. Estimates are reviewed continuously, and revisions are recognized in the period of change and future periods affected. Critical accounting estimates include revenue recognition, where the Company assesses contracts with customers for multiple products and services, and allocates variable considerations accordingly. The useful lives of property, plant, and equipment are reviewed at each reporting period, potentially affecting future depreciation expenses. The carrying value of investments in subsidiaries is reviewed annually for impairment, and losses are recognized if the recoverable amount is less than the carrying amount. Fair value measurements of financial instruments are conducted using valuation techniques when market prices are not available, requiring significant judgment regarding inputs like liquidity risk and credit risk. The Company estimates provisions for income tax and deferred tax assets based on relevant rulings, recognizing deferred tax assets only when future taxable profits are probable. Provisions and contingent liabilities are estimated based on past events, with adjustments made to reflect current best estimates. Employee benefits accounting requires assumptions, particularly regarding discount rates. The Company evaluates lease arrangements to determine if they qualify as leases under Ind AS 116, using significant judgment in assessing lease terms and options. The Ministry of Corporate Affairs has not issued any new standards or amendments applicable from April 1, 2020. Financial assets and liabilities are recognized when the Company enters into contractual agreements, initially measured at fair value. Transaction costs directly related to financial assets and liabilities are included in the initial measurement. Financial assets are derecognized when rights to cash flows expire or are transferred, while financial liabilities are derecognized when obligations are discharged or canceled. Cash and cash equivalents include highly liquid instruments convertible to cash with minimal risk of value change, consisting of bank balances unrestricted for withdrawal. Financial assets are measured at amortised cost if held to collect contractual cash flows. Financial liabilities are measured at amortised cost using the effective interest method. Equity instruments represent residual interests in the Company's assets after liabilities are deducted, recognized at proceeds received minus direct issue costs. The Company designates certain foreign exchange derivatives as hedging instruments for foreign exchange risks, following Board-approved policies. Financial assets are measured at fair value through profit or loss unless otherwise specified. The Company has elected to present changes in fair value of certain equity investments in other comprehensive income. Hedge accounting is applied when there is an economic relationship between hedging instruments and hedged items, with effectiveness assessed regularly. If hedged cash flows are no longer expected, accumulated amounts are reclassified to profit and loss. Expected credit losses for financial assets are measured through a loss allowance, with lifetime expected losses recognized for contract assets and trade receivables. The Company uses a provision matrix based on historical credit loss experience adjusted for forward-looking information. Investments consist of non-current and current categories, including equity shares and mutual fund units, with impairment accounted for as necessary. Trade receivables are reported as unsecured, with allowances for doubtful accounts deducted from total receivables. Cash and cash equivalents are detailed, including balances with banks and other financial assets. Loans receivables are categorized as non-current and current, with inter-corporate deposits yielding fixed interest rates. Other financial assets include security deposits and interest receivables. The Company identifies dues to micro and small enterprises based on collected information. Other financial liabilities are categorized as non-current and current, including accrued payroll and capital creditors."
"The carrying value of financial instruments is categorized by their measurement basis, with fair value hierarchy levels defined. Fair values are determined using observable or unobservable inputs, with unquoted investments approximating fair value based on cost. The increased attrition rate among women in FY 2023 is a challenge for our gender diversity initiatives, but we are committed to enhancing these efforts. Leadership development programs like iExcel are making a significant impact. In FY 2023, women constituted 23% of leadership roles filled by internal candidates, despite representing only 14% of the applicant pool, indicating the high caliber of women in our leadership pipeline and the commitment of our leaders to diversity. In external hiring, women accounted for 38.1% of net hires this year, compared to 35.7% in our overall workforce. The return to office is crucial for TCS as remote work, while convenient, has its downsides. Experienced employees can navigate virtual collaboration effectively, but junior employees struggle without established networks. Essential workplace elements like collaboration, mentorship, and team-building have suffered during remote work. Additionally, over half of our current workforce was hired post-March 2020, and physical interactions are vital for their acculturation and engagement. To address wage disparities caused by higher salaries for laterals, we are implementing the Elevate program, which allows employees to advance their careers and potentially double their salaries by meeting specific learning goals. Over time, performance-linked pay increases and promotions will help correct these disparities. Short-term onsite wage inflation poses a challenge to our margins due to legacy contracts with lower cost-of-living adjustments. However, this will be addressed in the medium to long term as new contracts reflect the current cost structure and include annual adjustments tied to inflation rates. The strength of the Rupee, without the inflation differential, is influenced by factors like India's trade deficit and interest rate differentials. Even without currency depreciation, we can sustain our margins as new contracts will incorporate wage inflation adjustments. Generative AI is expected to enhance productivity, leading clients to expect faster project delivery and higher output from the same team size. While this may not immediately change the relationship between revenue and headcount, it will likely increase overall volumes as technology becomes more integral to competitive differentiation. Margins are a reflection of competitiveness, and while generative AI can improve productivity, it is widely accessible, making it challenging to enhance relative competitiveness solely through this technology. Margin improvements are more likely to come from higher-priced growth solutions and innovative software products that leverage generative AI. TCS has developed a digital platform to support Indian farmers and enhance agricultural resilience in the face of climate change. The TCS Digital Platform for Next Generation Agriculture (DNA) offers tailored predictive advisory services to farmers and stakeholders in the food value chain. TCS DNA integrates remote-sensing data from satellites and drones with field data from sensors, significantly improving scale and cost efficiency without compromising accuracy. AI and machine learning algorithms analyze this data to provide actionable insights on weather, soil conditions, crop health, and pest forecasts. Rallis India Ltd has partnered with TCS to deploy this platform, enhancing productivity in hybrid seed production and improving yield by 1 to 2%. The platform, branded Drishti, monitors vast agricultural areas for crop productivity and early pest alerts. Amalgamation Plantations, a major tea producer, is also utilizing TCS DNA to enhance the quality and sustainability of tea leaves from small growers, aiming to increase their income by 15% and reduce rejections by 20%. The Drishti platform helps identify agricultural challenges and provides actionable insights, leading to better crop management and reduced yield loss for farmers. The twenty-eighth Annual General Meeting of Tata Consultancy Services Limited is scheduled for June 29, 2023, via video conferencing. The meeting will cover the adoption of audited financial statements and the declaration of dividends. Aarthi Subramanian will retire by rotation and is eligible for re-appointment as a director. K Krithivasan has been appointed as an additional director and is proposed for appointment as CEO and Managing Director for five years. The company seeks approval for existing and new material related party transactions, ensuring compliance with relevant regulations and maintaining arm's length terms. The AGM will be conducted in accordance with MCA guidelines, allowing for electronic participation and voting. Members are encouraged to register their email addresses to receive meeting materials electronically. The record date for determining entitlement to the final dividend is set for June 15, 2023, with payments scheduled for July 3, 2023, subject to approval at the AGM."
"Members are advised to update their contact and banking information to ensure smooth processing of dividends and other communications. Dematerialization of shares is encouraged to mitigate risks associated with physical shares. Nomination facilities are available for shareholders, and members are urged to register or update their nominations as needed. In joint holdings, the first holder's name will determine voting rights at the AGM. The report discusses the Auditor's Report Order, 2016, issued by the Central Government under the Companies Act, 2013, specifically for Tata Consultancy Services Limited. The Company has maintained accurate records of its property, plant, and equipment, including detailed quantitative information and locations. Management conducted a physical verification of these assets during the year, and no significant discrepancies were found. The title deeds for all freehold immovable properties are held in the Company's name as of the balance sheet date, and lease agreements for leased properties are also in the Company's name. Inventories were physically verified by Management at reasonable intervals, with no material discrepancies noted. The Company has not provided any loans to entities covered under Section 189 of the Act. It has complied with the provisions regarding loans, investments, and guarantees as per Sections 185 and 186 of the Act. The Company did not accept any deposits during the year and has no unclaimed deposits as of March 31, 2017. Reporting under clause 3(vi) is not applicable since the Company's activities are not covered by the Companies (Cost Records and Audit) Rules, 2014. The Company has been regular in depositing undisputed statutory dues, including various taxes and contributions, with no amounts overdue for more than six months. However, there are disputes regarding certain tax dues, with details provided in the report. The Company has not defaulted on loan repayments to banks and does not have loans from financial institutions or government entities. It has not raised funds through public offerings or term loans, making reporting under clause 3(ix) unnecessary. No fraud has been detected against the Company or by its employees during the year. Managerial remuneration has been paid in accordance with the necessary approvals as mandated by the Act. The Company is not classified as a Nidhi Company, so reporting under clause 3(xii) is not relevant. It has complied with related party transaction regulations, and all such transactions have been disclosed in the financial statements. The Company has not engaged in any preferential allotments or private placements of shares during the year. There have been no non-cash transactions with Directors or related persons, and the Company is not required to register under the Reserve Bank of India Act. The financial statements include a balance sheet as of March 31, 2017, showing total assets and liabilities. Non-current assets include property, plant, and equipment, capital work-in-progress, intangible assets, and various financial assets. Current assets consist of inventories, trade receivables, cash and cash equivalents, and other financial assets. The total equity reflects share capital and other equity components. The statement of profit and loss for the year shows revenue from operations and other income, with total income reported. Expenses include employee benefits, operating expenses, finance costs, and depreciation. The profit before tax and the tax expense are detailed, leading to the profit for the year. Other comprehensive income includes changes in fair values and remeasurement of defined benefit plans. The statement of changes in equity outlines movements in share capital and other equity components over the years. The cash flow statement details cash flows from operating, investing, and financing activities, highlighting net changes in cash and cash equivalents. The notes to the financial statements provide corporate information, significant accounting policies, and revenue recognition criteria, including the treatment of dividends and leases. The Management and Board of Directors of the Holding Company are accountable for the other information, which includes the Annual Report but excludes financial statements and auditor's reports. The Annual Report will be available after the auditor's report date. The auditor's opinion on the consolidated financial statements does not extend to the other information, and no assurance will be provided on it. The auditor's responsibility is to review the other information when available and assess if it is materially inconsistent with the consolidated financial statements or the audit knowledge. The Management and Board of Directors are tasked with preparing and presenting the consolidated financial statements in accordance with the Act, ensuring they provide a true and fair view. The audit addressed controls related to resource allocation and budgeting to prevent unauthorized changes to costs."
"Random sampling was used to test controls over estimating contract costs. The auditor evaluated revenue recognition in line with accounting standards, including performance obligations and transaction pricing. The Management and Board of Directors are responsible for maintaining adequate accounting records to safeguard assets and prevent fraud. They must apply appropriate accounting policies and make reasonable judgments and estimates. The Management must assess the ability of each company to continue as a going concern and disclose relevant matters unless liquidation or cessation of operations is intended. The Board of Directors oversees the financial reporting process for each company. The auditor's objective is to obtain reasonable assurance that the consolidated financial statements are free from material misstatement due to fraud or error. Reasonable assurance is a high level of assurance but does not guarantee that all material misstatements will be detected. During the audit, professional judgment and skepticism are exercised. If material uncertainty exists, the auditor must highlight it in the report. The auditor evaluates the overall presentation and content of the financial statements to ensure fair representation. Communication with those charged with governance includes discussing the audit scope, timing, and significant findings, including internal control deficiencies. The auditor identifies and assesses risks of material misstatement and designs audit procedures accordingly. Understanding internal control is essential for designing appropriate audit procedures. The auditor expresses an opinion on the adequacy of internal financial controls and their operating effectiveness. The auditor reports on legal and regulatory requirements, including compliance with the Companies (Auditor's Report) Order. The auditor confirms that all necessary information was obtained for the audit. Proper accounting records have been maintained, and the financial statements are in agreement with these records. The consolidated financial statements comply with Indian Accounting Standards. Directors of the Group companies are not disqualified from being appointed as directors. The auditor's report includes a separate opinion on internal financial controls. Pending litigations impacting the Group's financial position are disclosed. There are no foreseeable losses on long-term contracts. The Holding Company has not delayed transferring amounts to the Investor Education and Protection Fund. The management has confirmed that no funds were advanced or received with the understanding of lending or investing in other entities. The interim dividend declared is in accordance with the Act. The final dividend proposed is subject to member approval. The remuneration paid to directors complies with the Act's provisions. The auditor's report includes no adverse remarks regarding the Companies (Auditor's Report) Order. The internal financial controls are designed to provide reasonable assurance regarding reliable financial reporting. The auditor assesses the effectiveness of these controls and their design. Inherent limitations of internal financial controls may lead to undetected material misstatements. The audit evidence obtained supports the opinion on internal financial controls. TCS was recognized as Intel's Global System Integrator Partner of the Year for 2022. The company was also named one of the top 50 community-focused companies in the U.S., leading the Information Technology sector for the fourth consecutive year and receiving the Strategic Volunteer Award for its alignment of employee volunteer efforts with CSR initiatives. TCS won a Gold award in the WASH Initiative category at the CSR Health Impact Awards for its IoT-based smart water management solution supporting India's Jal Jeevan Mission. It ranked as the second-largest CSR spender in the 2022 Burgundy Private Hurun India 500 list. TCS received a Gold award at The Economic Times Human Capital Awards 2022 for its Sadhana SamarpaN initiative under TCS Purpose4Life. TCS was included in Fortune magazine's 2023 list of the World's Most Admired Companies. It was ranked as the second most valuable IT services brand globally by Brand Finance. TCS was the only Indian brand in the Top 50 of the 2022 Kantar BrandZ Top 100 Most Valuable Global Brands and was also recognized among the Top 10 fastest-growing brands worldwide. Kantar BrandZ India ranked TCS as the most valuable Indian brand, with its brand value increasing by 212% from 2020 to 2022. The 2022 Hurun Global 500 report placed TCS as the second most valuable Indian company. TCS won a Gold award at the ITSMA 2022 Marketing Excellence Awards for its Digital Store initiative and received a Drum Award for B2B 2022 for the Most Effective Digital Transformation Initiative. TCS secured first place at the Celonis Ecosystem Hackathon for Smart Metering aimed at reducing CO2 emissions. Its Digital Farming Initiatives were recognized with the NASSCOM Enterprise Cloud Awards '22 for excellence in leveraging cloud for sustainability."
"TCS' Food Digital Twin received the 2022 Vivekananda Sustainability Award for innovative technology use in environmental improvement. The company was also honored for Natural Resources Conservation at the Dun & Bradstreet ESG Awards 2023. TCS ranked fourth overall and first among technology firms in the 2022 FutureBrand Index for innovation, customer service, employee satisfaction, and management strength. The company emphasizes effective corporate governance as a foundation for long-term success. TCS's governance philosophy is rooted in the Tata Group's commitment to sustainability and ethical practices. The company adheres to the Tata Code of Conduct and has established a Code of Conduct for its Information Security Policy. TCS complies with SEBI Listing Regulations regarding corporate governance and has strengthened its governance through the Tata Business Excellence Model and various internal codes. TCS prioritizes board effectiveness, independence, and the protection of minority shareholders' interests by selecting qualified individuals for the Board. The Board includes a diverse mix of genders, nationalities, and industry backgrounds. The company ensures board independence with a majority of independent directors and maintains strict limits on directorships to avoid conflicts of interest. TCS promotes transparency and extensive disclosures to reduce information asymmetry and provides channels for minority shareholders to communicate with management. The company has a robust compliance framework to monitor adherence to laws and regulations, overseen by senior executives. TCS is committed to ethical tax practices, ensuring compliance with tax laws while optimizing tax costs. The company maintains open relationships with tax authorities and seeks advance clearance on tax treatments when necessary. TCS's approach to sustainability involves creating long-term value for stakeholders while respecting the environment. The Board committees oversee various sustainability topics, ensuring alignment with corporate governance practices. TCS emphasizes succession planning and talent retention, empowering employees and fostering leadership development across its business units. The Board of Directors consists of nine members, with a majority being non-executive directors, including independent directors. The company ensures that directors do not hold excessive directorships in public companies and maintains necessary disclosures regarding committee positions. Independent directors confirm their ability to fulfill their duties without conflicts of interest. The Board meets regularly to review compliance with applicable laws and governance practices. The company has established various committees to address specific governance and operational areas, including an Audit Committee, Nomination and Remuneration Committee, Stakeholders' Relationship Committee, and Corporate Social Responsibility Committee. Each committee has defined terms of reference and is composed of qualified members to ensure effective oversight. The Appeals Court vacated the punitive damages award of `2,303 crore, deeming it excessive, and instructed the District Court to reassess it to a maximum of `1,151 crore. The Court affirmed the District Court's decision to vacate the jury's compensatory damages award of `822 crore for alleged misuse of confidential information. It upheld the jury's compensatory damages award of `1,151 crore for the use of comparative analysis by the Company. The Company conservatively provided `1,218 crore in its profit and loss statement for the quarter ending September 30, 2020, categorized as an exceptional item. Epic's request for a Supreme Court review of the Appeals Court's order was denied. Epic invoked payment of `1,151 crore from a Letter of Credit for compensatory damages, which had already been accounted for. The District Court later affirmed the punitive damages at `1,151 crore. The Company filed an appeal to reduce these punitive damages, which is still pending. Following the encashment of the Letter of Credit, its value was reduced to `1,250 crore. The Company issued a letter of comfort to banks for credit facilities used by its subsidiaries, committing to maintain ownership and provide necessary support for their operations. Contingent liabilities do not include potential interest claims from counterparties. The consolidated financial statements detail net assets, profit and loss, and comprehensive income attributable to owners and non-controlling interests. The Company’s subsidiaries are listed with their respective voting power and financial contributions. The Company has given a letter of comfort to banks for credit facilities availed by its subsidiaries, ensuring continued support for their operations. Related party transactions include dealings with Tata Sons Private Limited and its subsidiaries, with significant transactions occurring in the ordinary course of business. Balances receivable and payable from related parties are detailed, showing amounts owed and due. The Company has not advanced or loaned funds to any entities with the understanding that they would lend to others. The sitting fees and commissions paid to non-executive directors are disclosed for the years ending March 31, 2023, and 2022."
"The Indian Parliament has approved a new Code on Social Security, which will affect the Company's contributions to employee benefits. The Company acquired additional ownership in a subsidiary, making it wholly owned. A transaction involving the acquisition of control over another subsidiary was accounted for as a combination of entities under common control, with no impact on consolidated financial statements. The Company liquidated a subsidiary in 2022. Dividends paid during the year include amounts per equity share for both final and interim dividends, with a proposed final dividend for the year ending March 31, 2023, pending shareholder approval. The auditor's report on the standalone financial statements confirms compliance with accounting principles and provides a true and fair view of the Company's financial position. Key audit matters include revenue recognition for fixed-price contracts, which involves significant estimates and judgments. The audit procedures included assessing the systems for revenue recognition and testing controls over contract costs. The auditor's responsibilities include obtaining reasonable assurance about the financial statements' accuracy and evaluating internal controls. The management is responsible for preparing financial statements that comply with applicable accounting standards and for maintaining adequate records. Tata Consultancy Services (TCS) submitted its Annual Report for the financial year 2017-18 to the National Stock Exchange and BSE, following the approval at the 23rd Annual General Meeting held on June 15, 2018. The report is also available on the company's website. The Chairman, N Chandrasekaran, highlighted TCS's growth over 50 years, establishing it as a leading global IT service provider and a trusted partner for Fortune 500 companies in their digital transformations. TCS has successfully navigated various technology changes, expanding its market presence and capabilities. The company has built a strong ecosystem with academic institutions to foster innovation continuously. TCS's commitment to customer-centric strategies and strong value systems has been crucial to its sustained growth. The company emphasizes employee empowerment, fostering an agile and innovative culture. TCS's Corporate Social Responsibility initiatives aim to create a positive societal impact, focusing on education, healthcare, and environmental sustainability. The digital transformation landscape is evolving, with data maturity becoming a key differentiator for businesses. TCS's strategic investments in digital technologies position it well for future opportunities. The company reported a revenue increase, with significant growth in various industry verticals, particularly in Energy, Travel, and Life Sciences. TCS's operating margin remained stable, and the company announced a final dividend and a bonus issue for shareholders. The Business 4.0 framework was introduced to help enterprises leverage digital technologies for growth. TCS revamped its service portfolio to align with market demands and engaged with various stakeholders beyond traditional IT roles. The company signed several significant contracts, including a major IoT deal with Rolls-Royce and a transformative contract with Transamerica. TCS's digital engagements accounted for a substantial portion of its revenue, reflecting its strong market position. The company continues to invest in research and innovation, developing platforms and solutions that differentiate it in the market. TCS collaborates with startups through its Co-Innovation Network, enhancing its innovation capabilities. The TCS Research Scholarship Program supports PhD scholars, contributing to academic research. The company maintains a young and diverse workforce, with a strong focus on employee development and retention. TCS's commitment to social responsibility is evident through extensive volunteer hours contributed by employees. The company's brand value has grown significantly, positioning it among the top IT services brands globally. TCS's reputation as a top employer is reinforced by its employee-friendly practices and low attrition rates. The company continues to adapt to the evolving technology landscape, ensuring it remains competitive and relevant. TCS's initiatives in community engagement and education have positively impacted numerous individuals worldwide. The company is recognized for its service quality and innovative marketing efforts, further enhancing its brand presence. Looking ahead, TCS sees significant opportunities as businesses increasingly rely on technology for competitive advantage. The company's core values and agile approach will continue to drive its success in the future. The executive management's remuneration is partially tied to climate-related factors, as detailed in the Natural Capital section and the Business Responsibility and Sustainability Report (BRSR). The variable component of executive directors' compensation, such as commissions, is influenced by the company's overall performance, which includes sustainability metrics, as well as individual performance evaluations. The report includes disclosures on Scope 1, Scope 2, and, where relevant, Scope 3 greenhouse gas emissions and associated risks. The Natural Capital section and BRSR provide insights into the company's GHG emissions. The Enterprise Risk Management section discusses risks related to emissions."
"The organization outlines its targets for managing climate-related risks and opportunities, along with performance against these targets, in the Natural Capital section. TCS's Integrated Annual Report aligns with the Global Reporting Initiative (GRI) Standards, the UN Sustainable Development Goals (SDGs), and the TCFD framework. The report also adheres to the principles of the United Nations Global Compact and serves as the basis for the company's Communication on Progress with the UNGC. A table in the report maps disclosures for the fiscal year against GRI standards and TCFD recommendations. The organization provides details about its governance structure and composition in the Corporate Governance Report and BRSR. It includes information on the nomination and selection process for the highest governance body and its role in overseeing sustainability impacts. The report discusses the delegation of responsibilities for managing impacts and the governance body's involvement in sustainability reporting. It also addresses conflicts of interest and the collective knowledge of the governance body. The remuneration policies for executives are linked to metrics and targets related to sustainability. The report includes a statement on the organization's sustainable development strategy and its policy commitments. It details processes for addressing negative impacts and compliance with laws and regulations. The organization engages with stakeholders and outlines its approach to stakeholder engagement in the BRSR. The report covers various material topics, including economic performance, market presence, procurement practices, anti-corruption measures, and tax governance. It also addresses environmental performance, including energy consumption, water management, and biodiversity impacts. The report discusses GHG emissions, including direct and indirect emissions, and the intensity of these emissions. It outlines waste management practices and supplier environmental assessments. The organization provides information on employment practices, including new hires and employee turnover, as well as benefits for full-time employees. It discusses occupational health and safety management systems and training provided to employees. The report highlights diversity and equal opportunity within governance bodies and the workforce. It addresses incidents of discrimination and community engagement initiatives. The report includes a safe harbor clause regarding forward-looking statements, acknowledging the inherent risks and uncertainties in predicting future performance. TCS emphasizes its commitment to managing growth and competition in the IT services sector while addressing various operational challenges. TCS launched an exclusive Campus Commune channel to engage the 2020-21 batch through various formats like blogs, quizzes, podcasts, and webinars, aimed at nurturing talent and preparing them for the National Qualifier Test. Over 247,000 students from the FY 2021 batch participated in these initiatives. The company’s internal associate satisfaction survey, PULSE, recorded the highest satisfaction and engagement scores in 13 years. TCS rolled out virtual versions of previously in-person leadership and soft skills programs to ensure continuous upskilling. Employees were segmented to achieve targeted learning objectives based on factors like allocation status and digital skills. TCS adopts a purpose-driven approach to learning and development, emphasizing just-in-time and personalized training. In response to COVID-19, the rigor of learning was intensified, focusing on building deeper competencies. The entire onboarding process has transitioned to a fully virtual format, allowing trainees to start their business journey immediately. Engagement with learners has significantly evolved in the new working environment. TCS employs various platforms and initiatives to enhance employee engagement, including an AI-based HR assistant named Cara and a mentoring chatbot called Milo. Other platforms like Knome, KnowMax, and GEMS facilitate social collaboration, learning, and recognition within the organization. The Safety First initiative prioritizes employee safety, while Fit4life promotes health and fitness among employees. Purpose4life encourages volunteering for community projects in education, health, and the environment. The Maitree community fosters connections among TCS employees and their families, promoting work-life balance. TCS has reimagined employee engagement through its ""Engagement with Purpose"" model, focusing on health, lifelong learning, career development, and community service. The #OneTCS Channel has successfully facilitated connections and interactions among employees. The PULSE survey serves as TCS' formal platform for gauging employee engagement and satisfaction. TCS Cares is a program designed to build a resilient workforce. The company offers various career management initiatives, including Xcelerate, an integrated platform for mapping employee aspirations to future opportunities. iConnect is a collaborative tool that connects employees with senior mentors for career guidance. The Inspire program identifies high-potential mid-level employees for accelerated growth and leadership roles. TCS' compensation model is merit-based, influenced by qualifications, experience, and performance, and regularly benchmarks against market practices. The company provides parental leave benefits, with a significant number of employees availing of this in FY 2021."
"TCS ensures equal pay for men and women in similar roles and locations, publishing pay differences transparently. The company has a strong commitment to diversity and inclusion, with initiatives like Champions of Equity and Allies of Diversity. TCS' culture of empowerment and investment in employee development has led to high retention rates, with an IT services attrition rate of 7.2% in FY 2021. TCS is a leading employer of women, offering various programs to support their career growth and work-life balance. The iExcel program aims to groom mid-level women managers for leadership roles, with many participants reporting positive career advancements. TCS has a robust Occupational Health and Safety policy, with a significant portion of the workforce represented in health and safety committees. The company has received numerous awards for its talent management and learning initiatives, including recognition for its employee-friendly practices. TCS has established a strong research and innovation footprint, with a focus on disruptive and platform innovations. The company has filed for thousands of patents and actively engages in research to address real-world challenges. TCS fosters an innovation culture through ideathons and hackathons, encouraging employees to contribute innovative ideas. The company has developed various solutions for customers, including digital platforms for retail and terminal operations. TCS also emphasizes social good through assistive technologies and initiatives aimed at supporting the disabled community. The TCS Research Scholar Program has supported numerous scholars and entrepreneurs working on socially relevant problems. The document provides a statement in accordance with the Companies Act, detailing the financial performance of subsidiary companies for the fiscal year 2017-18. It includes information such as the name of each subsidiary, the date they became subsidiaries, and their financial metrics like share capital, reserves, total assets, liabilities, turnover, and profit figures. The currency used for reporting varies by subsidiary, with exchange rates provided for conversions to Indian Rupees. The report highlights the proposed dividends for each subsidiary and the percentage of shareholding held by the parent company. It also notes the countries where these subsidiaries operate, which include India, the USA, the UK, Canada, and several others across different continents. The document includes a glossary that defines various terms related to the business and financial operations of the company. Key concepts such as Agile, Artificial Intelligence, and Cloud Computing are explained, emphasizing their relevance in modern business practices. The glossary also covers financial metrics like Earnings per Share, Dividend Payout Ratio, and Effective Tax Rate, providing clarity on how these are calculated and their significance. The report mentions the importance of automation and digital transformation in enhancing business efficiency. It discusses the role of cybersecurity in protecting company data and the significance of analytics in improving business performance. The document also addresses the concept of Business Process as a Service, highlighting its advantages in reducing operational costs through cloud computing. The text emphasizes the importance of innovation and collaboration within the start-up ecosystem, which is facilitated by the company's Co-Innovation Network. It discusses the impact of market capitalization and the significance of understanding customer needs through personalization. The report outlines the company's commitment to sustainability and responsible business practices, including the management of non-discretionary and discretionary spending. It also touches on the importance of employee engagement and the measurement of workforce attrition. The document concludes with a note on the company's governance structure, highlighting the roles of key managerial personnel and their responsibilities in driving the company's strategic objectives. It underscores the importance of transparency and accountability in corporate governance. TCS initiated a program called Purpose4Life to encourage employee engagement in volunteer activities, resulting in increased participation from associates and their families. The company promotes social change by leveraging its extensive workforce and IT expertise. In the fiscal year 2017, TCS employees contributed nearly 700,000 hours to various community service activities, including environmental clean-ups and educational support for marginalized groups. The BridgeIT program was launched to empower marginalized communities through digital education, focusing on employability and entrepreneurship. In its first year, BridgeIT trained digital entrepreneurs who implemented computer-aided learning in government schools, significantly improving attendance rates. TCS also supports the Government of India's Adult Literacy Program, which provides computer-based functional literacy training to non-literate adults in multiple languages. TCS has developed a program to enhance the employability of visually impaired youth, offering free, industry-specific training. The company collaborates with local NGOs to improve science education through lab-based experiments and mobile laboratories in tribal areas. TCS also runs employability programs for underprivileged youth, providing training in essential skills and industry knowledge."
"To support teachers, TCS initiated a Teacher Empowerment Program that focuses on soft skills training. The UDAAN program offers experiential learning to youth in Jammu and Kashmir, significantly improving their job prospects. TCS sponsors education for students in hostels and provides resources for tribal children in Mumbai. The LaunchPad initiative teaches programming through gamification, reaching thousands of students across various countries. TCS has also contributed to sanitation efforts by funding toilet construction in schools and supporting awareness programs. The Digital Impact Square was established to foster collaboration among young entrepreneurs addressing social issues through technology. TCS has partnered with educational institutions to align science and engineering education with industry needs, including launching an MSc program in Big Data Analytics. The company has implemented a Hospital Management System to improve patient care in medical institutions. TCS engages in STEM education initiatives globally, including the goIT program, which encourages students to pursue careers in technology. The company has also developed tools to reduce maternal and infant mortality rates in India. In Latin America, TCS's ENABLE program provides technical training to underprivileged youth, while in Asia-Pacific, the company supports local schools and community initiatives. TCS has established IT learning centers in South Africa to provide basic IT skills to children and train unemployed individuals. Employee engagement is integral to TCS's sustainability efforts, with extensive training on health and environmental issues. The company has implemented a PET bottle recycling initiative to reduce waste and emissions. TCS aims to halve its carbon footprint by 2020, focusing on energy conservation and renewable energy sources. Water conservation measures have been implemented in new facilities, and TCS has significantly reduced its fresh water consumption. The company emphasizes waste reduction and recycling, achieving high rates of paper waste recycling and minimizing landfill contributions. TCS's Corporate Social Responsibility spending reflects its commitment to education, health, and environmental sustainability. The company has a dedicated CSR committee overseeing its initiatives and policies. TCS regularly assesses its business responsibility performance and publishes an annual sustainability report. TCS acknowledges that while there is some pent-up demand, the significant adoption of hyperscaler clouds by clients is crucial for driving technology investments aimed at innovation and transformation. Winning large outsourcing deals has become a standard expectation rather than a competitive advantage, with TCS consistently securing a substantial share of these deals. In FY 2021, TCS reported an order book of $31.6 billion, reflecting a notable increase from the previous year, with a focus on high-value growth and transformation deals. The company is optimistic about future growth driven by increased spending in IT services, as enterprises seek to leverage commoditized technologies for competitive differentiation. TCS is assisting bpost in its transformation into a customer-centric e-commerce leader, enhancing customer experience through digital solutions and advanced analytics. The mybpost app has significantly improved customer satisfaction and operational efficiency. In Connecticut, TCS rapidly developed a cloud-based system to manage a surge in unemployment claims during the pandemic, demonstrating its capability to deliver critical services under pressure. The shift to remote work has led to structural changes in service delivery, allowing TCS to assign talent without geographical constraints. The company plans to adopt a hybrid working model by 2025, reducing the need for employees to be physically present in offices. TCS has maintained strong operating margins, aided by reduced travel and facility costs, and is committed to employee retention and development. TCS's talent strategy focuses on nurturing in-house talent, with a low attrition rate and a robust pipeline of digital skills. The company is investing in its growth and transformation capabilities without pursuing acquisitions solely for consulting revenue. TCS's approach to talent development emphasizes contextual knowledge and business acumen, preparing employees to lead customer transformations. In partnership with Novolex, TCS is driving a comprehensive business transformation to unify operations and enhance customer experiences through a new digital core. TCS has also played a pivotal role in building India's payment systems for the Reserve Bank of India, facilitating efficient and secure transactions that support economic growth. The upcoming Annual General Meeting will address the adoption of financial statements and the declaration of dividends, with provisions for remote participation due to the ongoing pandemic. Shareholders are encouraged to register their email addresses for future communications and to convert physical shares to dematerialized form for ease of management. The consolidated financial statements for Tata Consultancy Services Limited cover the fiscal year ending March 31, 2015. The report includes the cash flow statement, detailing cash flows from operating, investing, and financing activities."
"Profit before tax for the year was reported, along with various adjustments for depreciation, bad debts, and interest income. The cash generated from operations was significant, with taxes paid also noted. Investing activities included the purchase and sale of fixed assets, acquisition of subsidiaries, and transactions involving mutual funds. The net cash used in investing activities was reported. Financing activities included repayment of borrowings and dividend payments, leading to a net cash outflow in this category. The cash flow statement shows an increase in cash and cash equivalents, with a breakdown of cash balances at the beginning and end of the year. The report also includes supplementary disclosures regarding non-cash investing activities, such as investments received in settlement of trade receivables. The corporate information section describes the company and its subsidiaries, highlighting its global presence and ownership structure. The significant accounting policies outline the basis of preparation, principles of consolidation, and the use of estimates in financial reporting. Fixed assets are stated at cost, with specific depreciation methods outlined for various asset types. The company follows guidelines for leases, impairment, and investments, ensuring that long-term and current investments are appropriately valued. Employee benefits are categorized into defined contribution and defined benefit schemes, with specific accounting treatments for each. Revenue recognition policies are detailed, specifying how revenue is recognized for different types of contracts and sales. Taxation policies are explained, including current income tax and deferred tax considerations. Foreign currency transactions are translated at prevailing rates, with specific accounting for gains and losses. The company uses derivative instruments for hedging against foreign currency risks, with detailed accounting for these instruments. Inventories are valued at the lower of cost and net realizable value, and government grants are recognized when conditions are met. Provisions and contingent liabilities are addressed, with a clear distinction between recognized provisions and unrecognized contingent assets. Cash and cash equivalents are defined, emphasizing the liquidity of financial instruments. The share capital section outlines the authorized and paid-up share capital, including details on equity and preference shares. A reconciliation of the number of shares is provided, along with rights and preferences attached to the shares. Overall, the report provides a comprehensive overview of the financial performance and position of Tata Consultancy Services Limited, adhering to Indian GAAP and relevant accounting standards. The annual report for Tata Consultancy Services (TCS) for the financial year 2015-16 includes various financial details and disclosures. The company earned fees from statutory auditing services, which increased from the previous year. The audit of financial statements under IFRS also saw a rise in fees. Tax audit fees and services related to tax matters showed a slight increase as well. The company incurred significant expenses for SSAE 16 and other related services, which more than doubled compared to the previous year. Reimbursement of out-of-pocket expenses remained constant, while service tax expenses increased notably. The report outlines contingent liabilities, including claims against the company that are not acknowledged as debt, which rose significantly from the previous year. Income tax demands also saw a substantial increase, while indirect tax demands were lower than the previous year. The company provided guarantees on behalf of its subsidiaries, with a slight decrease in the total amount compared to the previous year. The report details capital and other commitments, highlighting the estimated amount of contracts remaining to be executed on capital account. The company has a purchase commitment towards the India Innovation Fund, which decreased from the previous year. TCS engages in derivative financial instruments to manage foreign exchange risks, with various contracts outstanding as of the reporting date. The hedging reserve for derivatives designated as cash flow hedges showed fluctuations throughout the year, with a net gain expected to be transferred to the profit and loss statement in the following year. The company reported net foreign currency exposures that were not hedged, which decreased from the previous year. The report includes information on micro and small enterprises, detailing amounts due to vendors and principal amounts paid beyond the appointed date. Revenue from operations and other income in foreign currency increased compared to the previous year, while interest and dividend income showed slight variations. Expenditure in foreign currency also increased, particularly in overseas employee costs and business expenses. The value of imports calculated on a CIF basis for raw materials and capital goods decreased compared to the previous year. The consumption of imported and indigenous raw materials showed a shift, with a higher percentage of imported materials."
"The company did not remit any dividends in foreign currencies during the year, and the report provides details on dividends declared and paid to non-resident shareholders. Loans and advances in the nature of loans outstanding from subsidiaries are disclosed, along with maximum amounts outstanding during the year. Research and development expenditure increased from the previous year, as did corporate social responsibility expenditure. The company revised its depreciation policy, resulting in a higher depreciation charge for the previous year. A one-time bonus to eligible employees was recognized in the financial statements. The report includes a statement regarding subsidiary companies, detailing their financial performance and shareholding percentages. The exchange rates used for converting foreign currency figures are provided, along with notes on significant corporate actions, including the amalgamation of CMC Limited with TCS. The report concludes with information on the board of directors and their roles, along with details for the annual general meeting, including proxy forms and attendance slips. The TCS Sahyadri Park in Pune is highlighted as a significant delivery facility, showcasing the company's commitment to global standards and environmental sustainability. The financial statements detail secured loans and advances to employees, which are considered good, along with unsecured loans and advances to employees, related parties, and various tax entitlements. The report also includes provisions for doubtful loans and advances, highlighting the total amount of loans and advances. Other current assets are categorized into interest receivable and other miscellaneous assets, with a comparison of figures from two fiscal years. The report outlines net other income, which includes interest income, dividend income, profits from investments, rental income, and miscellaneous income, with a total for each year. Interest income is broken down into various sources, including bank deposits and inter-corporate deposits. Dividend income is derived from long-term and current investments. The report also details profits from the sale of investments and exchange gains, emphasizing the impact of foreign exchange contracts. Employee benefit expenses encompass salaries, contributions to various funds, and staff welfare expenses, with a total expense figure for each year. Operational and other expenses are categorized into various types, including overseas business expenses, service costs, and legal fees, with a total for each year. Finance costs are primarily related to interest expenses. The current tax adjustments reflect provisions from previous years, including MAT entitlements. The statement of net assets and profit or loss outlines the contributions of various subsidiaries, detailing their net assets and profit contributions. The report discusses acquisitions and divestments, including the amalgamation of CMC Limited and the subscription of shares in Tata Consultancy Services Saudi Arabia. The company has provided letters of comfort to banks for credit facilities availed by its subsidiaries. Employee retirement benefits are categorized into defined contribution and defined benefit plans, with details on contributions and actuarial valuations. The report provides a comprehensive overview of the funded and unfunded status of retirement benefit plans, including changes in benefit obligations and plan assets. The segment reporting section identifies business and geographic segments, detailing revenue and expenses attributable to each segment. The report highlights significant contributions from geographic segments, including the Americas and Europe. Related party disclosures include the holding company and fellow subsidiaries with whom transactions have occurred. The report emphasizes the importance of transparency in financial reporting and the need for accurate disclosures regarding related parties. The Company compensates its managing director and executive directors through a combination of fixed salary, benefits, perquisites, allowances, and a performance-based commission. Annual salary increments are determined by the nomination and remuneration committee, effective from April 1 each year. The committee also decides on the commission based on the Company's profits and individual performances. In the fiscal year 2014-15, non-executive directors received sitting fees of ` 10,000 for attending board and committee meetings. The annual general meeting approved a commission for non-executive directors, capped at 1% of the net profits, which is allocated based on attendance and contributions. Directors are reimbursed for out-of-pocket expenses incurred while attending meetings. For the year ending March 31, 2015, non-executive directors received varying amounts in commission and sitting fees, with Mr. Cyrus Mistry not receiving any commission. The managing director and executive director's compensation includes salary, benefits, and a significant commission, with specific details provided for each director. The figures exclude provisions for encashable leave, gratuity, and health insurance premiums, as these were not separately valued. The managing director and executive director can terminate their services with six months' notice or salary in lieu. There are no severance fees."
"As of March 31, 2015, various directors held equity shares in the Company, with Mr. Cyrus Mistry holding the most significant number. The Company established a stakeholders' relationship committee to address investor grievances, which held one meeting during the year. An Investor Relations Department was created to cater to the needs of stakeholders. The compliance officer's details are provided, along with statistics on investor complaints received and resolved during the year. An ethics and compliance committee oversees adherence to the Insider Trading Code and the Company's Code of Conduct. The committee held one meeting during the year. The Company has a bank account committee responsible for managing bank accounts and authorizing operations. The executive committee reviews significant business matters before presenting them to the board. A separate STPI/SEZ committee manages registrations under relevant schemes. The risk management committee monitors the risk management plan and held two meetings during the year. The health, safety, and sustainability committee is responsible for policy implementation in these areas and held one meeting. The CSR committee was formed to oversee corporate social responsibility initiatives and held one meeting. The Company conducted its annual general meeting on June 30, 2015, with details provided about past meetings. There were no extraordinary general meetings during the fiscal year. Related party transactions were conducted in the ordinary course of business and approved by the audit committee. The Company has a whistleblower policy in place, allowing employees to report unethical behavior without fear of retaliation. Non-mandatory requirements have been fulfilled, including separate roles for the Chairman and CEO. A share capital audit confirmed the accuracy of the Company's issued and paid-up capital. The Company does not have any material non-listed subsidiaries, and its policy for determining material subsidiaries is available on its website. Financial results are published in leading newspapers and on the Company's website, along with press releases and investor presentations. The annual general meeting is scheduled for June 30, 2015, with the final dividend to be paid after July 7, 2015. The Company is listed on the NSE and BSE, with relevant stock codes provided. The dividend policy considers various factors, including future expansion and liquidity. Market price data for the Company's shares during the fiscal year is detailed, showing high and low prices and trading volumes. The performance of the Company's share price is compared to the BSE Sensex. The registrars and transfer agents' details are provided, along with information on share transfer systems. The distribution of equity shareholding and categories of shareholders as of March 31, 2015, are outlined, highlighting the significant percentage held by promoters. The top ten equity shareholders are listed, with Tata Sons Limited being the largest shareholder. The Company's shares are primarily in dematerialized form, and there are no outstanding GDRs, ADRs, or convertible instruments. Details regarding shares in suspense accounts are also provided, indicating the number of shareholders and shares involved. The Company analyzed employee feedback from the annual global satisfaction survey to understand the diverse workforce's needs. This analysis informed the design of interventions aimed at improving employee engagement. The Company remains committed to employee retention, supported by a performance-driven culture that emphasizes career aspirations, rewards, recognition, and overall welfare, resulting in a low attrition rate. Various initiatives under 'Maitree' focus on employee welfare, healthcare, and stress management, contributing to a highly engaged work environment. The Company received the Global Top Employer certification, ranking as the top employer in the UK and Europe and recognized in 24 countries, reflecting its effective talent strategy and company culture. The Company maintained a strong commitment to quality, service management, information security, and business continuity, achieving significant milestones. It holds the highest maturity Level 5 for CMMI-DEV and CMMI-SVC and adheres to multiple ISO certifications, demonstrating its dedication to quality management and environmental responsibility. The Company is also certified for industry-specific quality standards, showcasing its commitment to various sectors. The integrated Quality Management System supports a global service standard and is continuously enhanced for new service lines. The Company actively listens to customer feedback through satisfaction surveys, using insights to improve customer experience and internal operations. It invests in knowledge management and collaboration, receiving recognition as a leading knowledge enterprise at an industry summit. As of March 31, 2016, the Company had 61 subsidiaries, with no associate or joint venture companies. A statement of the subsidiaries' financial highlights is attached to the financial statements, and relevant documents are available on the Company’s website."
"New subsidiaries incorporated during the year include a women-focused IT services center in Saudi Arabia and a technology outsourcing company in Peru. The amalgamation of CMC with the Company was completed, transferring all business and assets. The board of directors confirmed compliance with accounting standards and internal controls, ensuring the preparation of annual accounts on a going concern basis. They have established effective internal financial controls and compliance systems. The board evaluated its performance and that of its committees and individual directors, using various criteria to assess effectiveness and contributions. The Company’s policy on directors' appointment and remuneration is detailed in the corporate governance report. Eight board meetings were held during the year, and the audit committee's composition is included in the corporate governance report. Deloitte Haskins & Sells LLP serves as the statutory auditors, with their appointment subject to ratification at each AGM. The auditors' reports contained no qualifications or adverse remarks. A risk management committee has been formed to oversee the risk management plan, addressing major risks through ongoing mitigation efforts. The Company has disclosed particulars of loans, guarantees, and investments in its financial statements, with no related party transactions falling under specific regulatory scrutiny. The corporate social responsibility policy and initiatives are outlined in an annexure, with further details available on the Company’s website. The extract of the annual return is provided in a prescribed format. The Company has not accepted public deposits, and energy conservation remains a focus, with initiatives aimed at improving energy efficiency and reducing carbon footprint. The Company continues to leverage the latest technologies to enhance service quality and productivity. Research and development efforts are concentrated on digital technologies and the industrialization of software. The Company’s IoT platform supports various applications, including health and safety monitoring for factory workers. Ongoing research includes deep learning, natural language processing, and applications in genomics, with several solutions transitioning from research to business impact. The Company recognized a lease liability based on the present value of remaining lease payments. The right-of-use asset was recorded at its carrying amount as if the standard had been applied from the lease commencement, discounted using the lessee's incremental borrowing rate as of April 1, 2019. A right-of-use asset and a corresponding lease liability were recognized, with a cumulative effect on retained earnings after taxes. The principal portion of lease payments is reported under cash flow from financing activities, while previous operating lease payments were reported under cash flow from operating activities. The weighted average incremental borrowing rate applied to lease liabilities was 7.80%. With the application of Ind AS 116, expenses shifted from lease rent to depreciation for the right-of-use asset and finance costs for interest on lease liability. The difference between future minimum lease rental commitments and the lease liability is mainly due to the inclusion of present value for cancellable lease terms and the discounting of lease liabilities. For finance leases classified under Ind AS 17, the carrying amounts of the right-of-use asset and lease liability at the initial application date of Ind AS 116 were based on the amounts measured under Ind AS 17. Certain amounts were reclassified from property, plant, and equipment to right-of-use assets and from other current financial liabilities to lease liabilities. The Company, as a lessor, did not need to make adjustments for leases except for a sub-lease, which had no significant impact. The right-of-use asset details include additions and net carrying amounts for various categories such as leasehold land and buildings. Depreciation on right-of-use assets was recorded for the year, with interest on lease liabilities also reported. The Company incurred expenses for short-term leases and low-value assets, with total cash outflow for leases reported. Lease term extension options were not included in the measurement of lease liabilities, and the present value of future cash outflows for such extensions was noted. The Company does not anticipate significant demand contraction due to COVID-19, and long-term leases for properties used as delivery centers are expected to remain unchanged. Property, plant, and equipment are stated at cost, with depreciation provided on a straight-line basis over estimated useful lives. The useful lives of various asset types are specified, and impairment evaluations are conducted when necessary. The net carrying amount of property, plant, and equipment as of March 31, 2020, reflects costs, accumulated depreciation, and any disposals. Intangible assets are measured at cost and amortized over their useful lives."
"Changes in contract assets and unearned revenue are tracked, with revenue recognition based on the transfer of control of products or services to customers. Revenue disaggregation by geography shows amounts for different regions, with no single customer representing a significant portion of total revenue. The Company has assessed the impact of COVID-19 on customer spending and has taken steps to manage contractual obligations. Other income includes various sources such as interest and dividend income, with employee benefits comprising salaries and contributions to funds. Employee benefit obligations are categorized into non-current and current liabilities, reflecting various employee benefits. The Company has contingent liabilities related to direct tax demands in India and other jurisdictions, amounting to significant sums as of March 31, 2019, and March 31, 2018. The Company is contesting these demands on appeal. There are additional tax contingencies for which the Company has indemnification rights from the seller of TCS e-Serve Limited. The Company regularly receives inquiries from tax authorities regarding its operations and believes that any resulting claims will not succeed upon resolution. The duration of tax assessments varies by jurisdiction, with major jurisdictions including India, the United States, and the United Kingdom. In India, tax filings from fiscal 2016 are subject to examination, while in the U.S., the statute of limitations applies to fiscal 2015 and earlier. In the U.K., the statute applies to fiscal 2016 and earlier. Other assets are categorized into non-current and current assets. Non-current assets include contract assets, prepaid expenses, prepaid rent, contract fulfillment costs, capital advances, advances to related parties, and other items. The total for non-current other assets increased from the previous year. Current other assets include contract assets, prepaid expenses, prepaid rent, contract fulfillment costs, advances to suppliers, advances to related parties, recoverable indirect taxes, and other advances. The total for current other assets also increased significantly. Inventories are recorded at the lower of cost or net realizable value and consist of raw materials, finished goods, and stores and spares. The total inventory value decreased from the previous year. Trade receivables are classified into non-current and current categories, with allowances for doubtful accounts deducted from the total. The current trade receivables saw a notable increase compared to the previous year. Cash and cash equivalents include balances with banks, cheques on hand, and remittances in transit, showing a significant increase in total cash and cash equivalents. Other balances with banks consist of earmarked balances and short-term bank deposits, which also increased from the previous year. The Company’s share capital includes authorized, issued, subscribed, and fully paid-up shares. The total share capital remained unchanged, while the issued and paid-up share capital increased significantly due to a bonus share issuance approved by the Board of Directors. The Company also executed a buyback of equity shares, extinguishing a substantial number of shares. The Company’s objectives for capital management focus on maximizing shareholder value and supporting growth. Other equity includes various reserves, with changes in the securities premium and capital redemption reserve noted. The general reserve was utilized for buybacks, and retained earnings increased due to profit for the year. Borrowings are categorized into non-current and current, with non-current borrowings secured against property. Other financial liabilities include accrued payroll, current maturities of finance lease obligations, unclaimed dividends, and liabilities towards customer contracts, all of which increased from the previous year. Provisions are classified into non-current and current, with a notable increase in current provisions for foreseeable losses. Other liabilities include operating lease liabilities and advance received from customers, with total current liabilities showing a slight increase. Revenue consists of consultancy services and sales of equipment and software licenses, with a significant increase in total revenue compared to the previous year. Revenue is disaggregated by industry vertical and geography, with no single customer representing a significant portion of total revenue. The Company applied practical expedients in revenue recognition, not disclosing certain unsatisfied performance obligations. Changes in contract assets and unearned revenue were detailed, showing increases in both categories. Other income includes interest income, dividend income, and net gains on investments, with total other income increasing from the previous year. Employee benefits expenses include salaries, contributions to provident funds, and staff welfare expenses, all of which increased. Employee benefit obligations are categorized into non-current and current, with a defined benefit plan for gratuity. The Company manages the gratuity plan through a trust, and the details of the defined benefit retirement plans were provided, including changes in benefit obligations and plan assets."
"The assumptions used for accounting for the defined benefit plan were also outlined. TCS undergoes regular audits by third-party consultants for compliance in areas like quality management and information security. The audit committee reviews management and auditor reports, considers improvement suggestions, and follows up on corrective actions. It also meets with statutory auditors to discuss internal control systems and keeps the board informed of significant findings. As of March 31, 2017, the audit committee determined that internal financial controls were adequate and effective. The company's philosophy on corporate governance emphasizes strong leadership, fiscal accountability, and ethical behavior towards all stakeholders. TCS has a legacy of transparent governance practices rooted in Tata culture. The company has established a Code of Conduct for employees and non-executive directors, which is accessible on its website. TCS adheres to SEBI Listing Regulations regarding corporate governance compliance. As of March 31, 2017, TCS had eleven directors, with a majority being non-executive and a significant portion being independent. Directors do not hold excessive directorships or committee memberships, and necessary disclosures have been made. Independent directors meet the criteria of independence as defined by regulations, and their tenure complies with legal requirements. Nine board meetings were held during the year, with all meetings having the necessary quorum. The attendance of directors at these meetings and the last AGM is documented. The company has a structured approach to evaluating the performance of its directors and committees. The audit committee is responsible for overseeing financial reporting, evaluating internal controls, and recommending auditor appointments. The committee includes independent and non-independent members and held six meetings during the year. The company secretary serves as the committee's secretary. The nomination and remuneration committee recommends board composition, evaluates director performance, and oversees human resource strategies. It held four meetings during the year and does not have an employee stock option scheme. The stakeholders' relationship committee addresses security holder grievances and oversees share certificate issues. The corporate social responsibility committee formulates and monitors CSR policies, while the risk management committee implements risk management plans. The ethics and compliance committee focuses on the company's Code of Conduct and anti-corruption policies. The bank account committee manages the opening and closing of bank accounts, while the executive committee reviews business strategies and financial projections. The company has a compliance officer responsible for addressing investor complaints, with a record of complaints received and resolved during the year. The performance evaluation criteria for independent directors include their participation, commitment, and integrity. The remuneration policy aims to attract and retain talent, with a structure tailored to local regulations. Non-executive directors receive sitting fees and commission based on attendance and contributions. The managing director and executive directors have a compensation structure that includes salary, benefits, and performance-based commission. The company held various general body meetings, including annual and extraordinary meetings, to address shareholder approvals and other matters. No special resolutions were passed in the last three AGMs. Digital technology is a diverse and evolving set of tools that enables continuous access to data, systems, applications, and business processes. This architecture allows businesses to rethink various aspects of their operations, leading to innovative transformation stories. Brick-and-mortar businesses can reimagine themselves by focusing on the end goal of providing convenience and simplicity in interactions, analyzing each step in the value chain to identify necessary changes for achieving that goal. For an enterprise aiming for digital transformation, a comprehensive roadmap is essential. Organizations should focus on three main areas simultaneously. First, they need a robust digital foundation, or ""Digital spine,"" which includes a cloud-first strategy for shareable infrastructure, applications, and data, the creation of a service fabric through APIfication, and the renovation of core systems and automation frameworks as needed. The second area of focus is intelligence, where organizations must leverage large volumes of real-time data to drive insights-based decision-making. This includes deploying Big Data analytics, IoT, AI-driven personalization, and autonomous operations. Lastly, cloud adoption is crucial. Virtualizing assets is key to unlocking enterprise value, as cloud-based models offer enhanced flexibility, agility, and efficiency. TCS's services are increasingly integrated into clients' core products, providing a competitive edge and reflecting a significant structural shift in the industry. There is a growing trend of increased spending on digital technologies across various sectors, with TCS's services becoming integral to clients' offerings. In 2018, TCS identified three key themes for customers: Agile, Automation, and Cloud, which are essential for digital transformation."
"Agility at scale is vital for enterprises managing large digital initiatives, enabling them to orchestrate development across globally distributed teams. Automation is a priority for executives, as constrained budgets necessitate outsourcing as a means to fund transformation efforts. The shift in technology spending is leading to more outsourcing, as the rapid evolution of technology makes it challenging to predict longevity and relevance. Dick's Sporting Goods is reimagining its e-commerce strategy with TCS's help, transitioning to an insourced e-commerce platform that enhances agility and data access, ultimately driving growth and profitability. Mitsubishi Hitachi Power Systems is transforming power plant operations by implementing an AI-based boiler control system that optimizes performance and reduces emissions through advanced analytics. TCS's Research and Innovation efforts are aligned with customer business needs, leveraging digital technologies to foster innovation across industries. AI is being applied in various domains, including consumer applications and enterprise IT operations through TCS's Ignio™ product, which enhances automation and efficiency. TCS engages with customers through co-innovation events and workshops, fostering collaboration to identify opportunities and develop solutions. The Co-Innovation Network (COIN) connects TCS with start-ups and academia, facilitating partnerships that bring new technologies to market. TCS has established significant academic alliances with leading institutions in India, resulting in successful research collaborations and innovations. The current wave of automation is characterized by intelligent software that learns and adapts, moving beyond traditional robotic automation. Ignio™ exemplifies this shift, offering cognitive automation that enhances IT operations by predicting issues and autonomously managing tasks. TCS has implemented safeguards in Ignio™ to ensure secure and responsible operation, including logging actions and using an action firewall to prevent errors. The surge in interest in AI is driven by increased data availability, software-defined solutions, and cloud computing capabilities. Ignio™ empowers organizations by augmenting human intelligence, significantly reducing downtime and manual effort while improving efficiency. Alcoa's separation into two companies was facilitated by TCS, which managed the complex IT system migration without disrupting business operations. BT has transformed its business model by becoming a leading IPTV provider, with TCS supporting the development and deployment of its TV products. The changing customer buying behavior in the digital landscape is reshaping IT services, leading to integrated delivery and greater virtualization. Customers now prefer accessing IT services through the cloud rather than traditional on-premises installations, seeking flexibility and cost-effectiveness. Shared services allow multiple customers to benefit from standardized capabilities, enabling TCS to streamline service delivery. Customers increasingly look to TCS for guidance in navigating new technologies and exploring innovative solutions. The rise of integrated solution offerings means customers expect TCS to manage comprehensive transformation programs rather than individual services. TCS is building replicable models for IT system separations to support clients undergoing divestitures, emphasizing collaboration across various service lines. Automation is viewed as an opportunity for revenue growth, with TCS focusing on enhancing its automation capabilities through partnerships and its own products. The concept of non-linear revenues is crucial for TCS, as products and platforms can generate income without proportional increases in costs. TCS's approach to delivering efficiency in lower-value areas allows clients to allocate resources to higher-end transformational initiatives. State Bank of India successfully merged operations with six associate banks, relying on TCS to manage the critical data migration to its core banking platform. DNB launched a successful mobile P2P payment app, Vipps, with TCS's expertise, achieving widespread adoption among users in Norway. The demand for Agile and DevOps methodologies is driven by the need for rapid software delivery in response to changing business requirements. Agile promotes iterative development, while DevOps focuses on automating deployment processes, together enabling faster time-to-market. Effective communication and collaboration are essential for implementing distributed Agile models, ensuring teams remain aligned and productive. TCS has invested in fostering an Agile culture among its workforce, emphasizing training and promoting Agile practices across customer engagements. The principles of industrialized service delivery remain relevant in an Agile context, ensuring well-defined roles and processes are maintained. Agile teams work in sprints, focusing on delivering defined work items while utilizing tools for visibility and collaboration across distributed teams. Daily stand-up meetings are a key practice in Agile, promoting collaboration and planning among team members. The internal financial controls over financial reporting of Tata Consultancy Services Limited and its Indian subsidiaries were audited as of March 31, 2016, alongside the consolidated financial statements for the same period. The Board of Directors of the Company and its subsidiaries are tasked with establishing and maintaining these internal financial controls based on specific criteria."
"Their responsibilities encompass the design, implementation, and maintenance of effective internal financial controls to ensure orderly business conduct, adherence to policies, asset safeguarding, fraud prevention, and accurate financial reporting. The auditors' role is to provide an opinion on the effectiveness of the internal financial controls over financial reporting based on their audit. The audit was conducted in accordance with established auditing standards and required compliance with ethical guidelines. The audit procedures involved obtaining evidence regarding the adequacy and effectiveness of the internal financial controls system. Internal financial controls are processes designed to ensure reliable financial reporting and compliance with generally accepted accounting principles. These controls include maintaining accurate records, ensuring transactions are recorded properly, and preventing unauthorized asset use. There are inherent limitations to internal financial controls, such as the potential for collusion or management override, which may lead to undetected material misstatements. Future evaluations of these controls may be affected by changes in conditions or compliance levels. The auditors concluded that, in all material respects, the Company and its subsidiaries have an adequate internal financial control system that was operating effectively as of March 31, 2016. The report on the internal financial controls also references the reports from auditors of the subsidiary companies. The consolidated financial statements include a balance sheet, profit and loss statement, and cash flow statement for the year ended March 31, 2016. The balance sheet outlines the equity and liabilities, including shareholders' funds, minority interest, non-current liabilities, and current liabilities. The assets section details non-current and current assets, including fixed assets, investments, and cash balances. The profit and loss statement presents revenue from operations, other income, expenses, and profit before tax. The cash flow statement outlines cash flows from operating, investing, and financing activities, detailing net cash provided by operating activities and net cash used in investing and financing activities. The notes to the financial statements provide corporate information, significant accounting policies, and principles of consolidation. The financial statements are prepared in accordance with Indian GAAP and comply with the relevant accounting standards. The consolidation process involves combining the financial statements of the Company and its subsidiaries on a line-by-line basis, eliminating inter-company transactions and unrealized profits. The Group's management makes estimates and assumptions that affect reported asset and liability balances, as well as income and expense amounts. Fixed assets are recorded at cost, and depreciation is charged on a straight-line basis over their useful lives. Leases are classified as finance or operating leases based on the risks and rewards of ownership. Impairment reviews are conducted to assess the carrying amounts of assets, and any impairment losses are recognized in the profit and loss statement. Investments are stated at cost, with provisions for any temporary declines in value. Employee benefits include defined contribution and defined benefit plans, with costs determined using actuarial valuations. Revenue recognition policies vary based on the nature of contracts, with revenue recognized when services are rendered or upon delivery of goods. Taxation is determined according to applicable laws in India and foreign jurisdictions. The company is seeking shareholder approval for related party transactions that fall within specified thresholds and conditions. All related party contracts and transactions are subject to review and approval by the Audit Committee. Transactions requiring arm's length pricing are evaluated by statutory auditors. The explanatory statement includes details for items related to material related party transactions with identified subsidiaries of the promoter company. The identified subsidiaries are involved in various services such as IT services, hardware and software supply, expense reimbursement, procurement, property leasing, and resource transfer. Transactions are conducted in the normal course of business with industry-standard terms. The monetary value of transactions is capped at 1.2 percent per annum for a single related party and a cumulative 4.2 percent across all related parties, based on the consolidated turnover for the financial year 2023-24. The company participates in digitization initiatives within the Tata group, leveraging skills and resources to enhance user experience and provide advanced technologies. All related party contracts are reviewed for compliance with arm's length standards. Specific material related party transactions with Tejas Networks Limited are outlined, including the nature of the relationship and the types of transactions involved. The proposed transaction value is significant, representing 6.2 percent of the company's consolidated turnover for the financial year. The collaboration aims to support high-priority government projects and the Tata Group's commitment to self-reliance."
"For transactions with Tata Motors Limited and Jaguar Land Rover Limited, the company outlines the nature of the relationship and the types of services provided. The monetary value of these transactions is approximately ₹4,500 crore per annum, with a maximum of 1.9 percent of the consolidated turnover for the financial year. The company also details transactions with Tata Consultancy Services Japan, Ltd., emphasizing the normal course of business and the maximum transaction value of 1 percent of the consolidated turnover. The justification for these transactions includes the global delivery model and the expertise of TCS. Additional disclosures regarding loans, inter-corporate deposits, and investments are noted as not applicable. The company emphasizes that all relevant information is included in the material facts statement for shareholder consideration. Shareholder approval for the proposed related party transactions is valid until the next Annual General Meeting. Directors and key managerial personnel, except those mentioned, have no interest in the resolutions. The Audit Committee and Board of Directors have recommended these transactions for shareholder approval. The SEBI Listing Regulations stipulate that related parties cannot vote on these resolutions. The company seeks approval for the material related party transactions outlined in the notice. The notice includes details about the director seeking re-appointment, including their qualifications, experience, and terms of re-appointment. The director has a significant background in business and technology, contributing to the Tata Group's transformation and growth. A comprehensive list of identified subsidiaries of the promoter company is provided, detailing various entities under its umbrella. The company also lists its subsidiaries, highlighting its extensive network and operational reach. Equity shares have been issued to shareholders of TCS e-Serve Limited as part of a sanctioned amalgamation scheme. The company aims to maximize shareholder value, ensure business continuity, and support growth through effective capital management. Capital requirements are determined based on annual operating plans and strategic investments, funded through equity and cash flows. The company is not bound by external capital requirements. Other equity includes various reserves such as capital reserve, securities premium, capital redemption reserve, general reserve, and retained earnings. The capital redemption reserve has seen transfers from retained earnings and the issuance of bonus shares. The general reserve has been adjusted for transfers to retained earnings and buy-back of equity shares. The special economic zone re-investment reserve reflects transfers from retained earnings and adjustments for the year. Retained earnings have increased due to profits, with adjustments for buy-backs, expenses, and transfers from other reserves. Statutory reserves have also seen an increase due to transfers from retained earnings. The investment revaluation reserve has changed due to net gains and losses on financial assets. The cash flow hedging reserve has improved due to net changes during the year. Borrowings consist of non-current secured loans and current unsecured loans, with finance lease obligations secured against property. Other financial liabilities include capital creditors and various current liabilities such as accrued payroll and unclaimed dividends. Provisions are categorized into non-current and current, with a focus on foreseeable losses. Other liabilities include non-current operating lease liabilities and current liabilities related to customer advances and statutory obligations. Revenue is derived from consultancy services and equipment sales, with a significant increase in revenue recognized during the year. Changes in contract assets and unearned revenue reflect the company's performance and invoicing activities. Other income includes interest, dividends, and gains from investments, with a notable increase compared to the previous year. Employee benefits encompass salaries, provident fund contributions, and other welfare expenses, with a significant rise in total expenses. Employee benefit obligations are categorized into non-current and current, with a focus on gratuity and defined benefit plans. The company operates a gratuity scheme as a defined benefit plan, with obligations managed through a trust. The defined benefit obligations have increased, reflecting changes in service costs and interest costs. The fair value of plan assets has also risen, indicating a healthy funding status. The company has made contributions to various employee benefit plans, including provident funds and superannuation. Research and development expenditures have been incurred, reflecting ongoing investment in innovation. Lease commitments for operating and finance leases have been outlined, with future rental commitments detailed. Financial instruments are categorized by their measurement basis, with a significant portion of financial assets and liabilities recorded at amortized cost. The carrying values of financial instruments have been summarized, indicating the company's financial position and asset management strategies. The document contains various financial disclosures and reports related to Tata Consultancy Services Limited for the fiscal year ending March 31, 2016."
"It includes details about related party transactions, obligations towards operating and finance leases, earnings per share, contingent liabilities, and capital commitments. Key management personnel and their relatives are involved in transactions with the company, including brand equity contributions and remuneration. The company has significant transactions with its holding company and fellow subsidiaries, including purchases of fixed assets and loans. The financial statements reflect balances with related parties, including trade receivables and payables. There are disclosures regarding material transactions with specific related parties, such as loans and advances, revenue, and interest income. The company has obligations under operating leases, with non-cancellable lease obligations detailed for various time frames. It also has finance lease obligations, with minimum lease payments outlined for different periods. Receivables under sub-leases are reported, along with the total recognized in the profit and loss statement for the year. Earnings per share calculations are provided, showing profit available for equity shareholders and the weighted average number of shares. Contingent liabilities include claims against the group, income tax demands, and indirect tax demands. The company is involved in ongoing legal matters, including a significant claim from Epic Systems Corporation. Capital commitments are noted, with estimated amounts for contracts remaining to be executed. The company engages in derivative financial instruments to manage foreign exchange exposure, with details on outstanding contracts and their fair values. The movement in the hedging reserve for cash flow hedges is documented, along with net gains recognized. Research and development expenditures are reported, highlighting the company's investment in innovation. Changes in depreciation policies are noted, affecting the financial statements for the previous year. The company has recognized a one-time bonus for eligible employees in its financial statements. Figures from previous years have been restated for consistency. The independent auditors' report confirms the accuracy of the standalone financial statements and the effectiveness of internal financial controls. The management is responsible for maintaining adequate accounting records and ensuring compliance with applicable laws. The auditors conducted their audit in accordance with established standards, providing an opinion on the financial statements. The report includes a statement on the adequacy of internal financial controls over financial reporting, affirming their effectiveness. The company has maintained proper records of fixed assets and conducted physical verifications, with no material discrepancies noted. Overall, the document provides a comprehensive overview of the financial position, performance, and compliance of Tata Consultancy Services Limited for the fiscal year. The Company has made investments and provided unsecured loans or advances to other parties during the year. However, it has not made any investments or granted loans to companies, firms, or limited liability partnerships. The Company has not provided guarantees or secured loans to any parties during the year. Based on our audit procedures, the Company has not extended loans or guarantees to subsidiaries and does not hold investments in joint ventures or associates. The Company has provided unsecured loans and advances to parties other than subsidiaries, with specific amounts listed. The terms of the loans and advances are not prejudicial to the Company's interests. For interest-free loans, the repayment of principal is stipulated, and repayments have been regular. For interest-bearing loans, both principal and interest repayment schedules are established, and repayments have been consistent. There are no overdue amounts exceeding ninety days for loans or advances. No loans or advances have been renewed or extended to settle overdue amounts. The Company has not granted loans that are repayable on demand or without specified repayment terms. The Company has complied with the provisions of the Companies Act regarding loans and investments. The Company has not accepted public deposits, making that clause inapplicable. The Central Government has not mandated the maintenance of cost records for the Company's products or services. The Company has no liabilities for service tax, excise duty, sales tax, or value-added tax since these have been subsumed into GST. Statutory dues, including GST and income tax, have been regularly deposited with authorities, and there are no undisputed amounts in arrears for over six months. There are ongoing disputes regarding certain statutory dues, with amounts specified for various periods and forums. The Company has not disclosed any previously unrecorded transactions as income in tax assessments. The Company has not defaulted on loan repayments or interest payments to any lender and has not been declared a wilful defaulter. The Company has not obtained term loans during the year, and no short-term funds have been used for long-term purposes."
"The Company has not raised funds through public offerings or made preferential allotments during the year. No fraud has been reported during the audit, and no whistleblower complaints have affected the audit procedures. The Company is not a Nidhi Company, making that clause inapplicable. Related party transactions comply with the Companies Act, and details have been disclosed in the financial statements. The Company has an adequate internal audit system, and internal audit reports have been considered. The Company has not engaged in non-cash transactions with directors. The Company is not required to register under the Reserve Bank of India Act and is not a Core Investment Company. The Company has not incurred cash losses in the current or preceding financial year. There has been no resignation of statutory auditors during the year. The Company is capable of meeting its liabilities as they fall due within a year from the balance sheet date. There are no unspent amounts under the Companies Act for ongoing projects. The Company has adequate internal financial controls in place, which were operating effectively as of the balance sheet date. The company has disclosed details under the Sexual Harassment of Women at Workplace Act in its Business Responsibility Report. Financial results are published in major Indian newspapers and displayed on the company's website. Statutory notices are also published in select newspapers, and press releases are issued periodically. Financial results and other important documents are submitted to the National Stock Exchange and BSE, and FAQs about the company are available online. The Management Discussion and Analysis report is included in the Annual Report. The Annual General Meeting for the fiscal year ending March 31 is scheduled for June. If approved, the final dividend will be credited on June 15. The book closure dates are mentioned in the AGM notice. The company is listed on the National Stock Exchange and BSE, with specific stock codes for each. The AGM will be conducted virtually as per government guidelines, eliminating the need for a physical venue. Details of directors seeking re-appointment at the AGM are provided in the notice annexure. Market price data for the company's shares is presented, showing high and low prices along with trading volumes for various months. The company’s registrars and transfer agents are identified, along with their contact information and locations for document acceptance. The share transfer system requires securities to be in dematerialized form, and shareholders are encouraged to convert physical shares. The company has a specific process for approving share transfers, which is noted in subsequent board meetings. Shareholding distribution as of March 31 shows the percentage of equity held by various categories, including promoters and institutional investors. The top ten equity shareholders are listed, with their respective holdings. The company has not issued any GDRs, ADRs, or convertible instruments. It does not engage in commodity trading, and details on foreign exchange risk and hedging are discussed in the Management Discussion and Analysis report. Information on equity shares in suspense accounts is provided, indicating the number of shareholders and shares involved. Unclaimed dividends and shares are subject to transfer to the Investor Education and Protection Fund after seven years. The company sends reminders to shareholders to claim their dividends to prevent such transfers. Details of unclaimed dividends and shares transferred to the IEPF are outlined, including financial years and amounts. The company operates various offices in India and abroad, with a manufacturing facility in Goa. Contact information for investor services is provided, including a designated email for IEPF queries. The company has adopted a Code of Conduct for employees and directors, ensuring compliance has been confirmed by senior management. A certificate on corporate governance compliance has been issued, stating that the management is responsible for adherence to regulations. A certificate of non-disqualification of directors confirms that no directors have been disqualified from serving on the board. The report lists the names and appointment dates of the directors. The company has received numerous awards and accolades for its performance, including recognition for customer satisfaction and corporate governance. TCS has been acknowledged for its innovative use of technology and has received awards for its brand reputation and community initiatives. The company has been recognized as a top employer and for its diversity and inclusion efforts. It has also received awards for its digital transformation initiatives and partnerships. The independent auditors have conducted an audit of the consolidated financial statements, which include the balance sheet and profit and loss statement for the year ended March 31."
"The audit report outlines the opinion on the financial statements and includes significant accounting policies and explanatory notes. The Integrated Annual Report for 2021-22 outlines the stakeholder engagement strategy of TCS, detailing key groups and their communication channels. Customers are engaged continuously through various means, including project-related meetings and social media, with a focus on understanding their challenges and improving services. Shareholders receive updates through press releases and meetings, with quarterly financial statements and annual general meetings to address their concerns and expectations. Employees are engaged through monthly publications and continuous communication channels, focusing on career growth, safety culture, and diversity. Partners and collaborators are involved through regular meetings and events to strengthen partnerships and ensure ethical practices. Academic institutions are engaged for knowledge exchange and collaboration on research and job creation. TCS also interacts with head-hunters, staffing firms, industry bodies, regulators, governments, NGOs, and local communities to ensure compliance and address public concerns. The report highlights TCS's commitment to human rights, with mechanisms in place for grievance redressal and a focal point for addressing human rights impacts. Complaints related to sexual harassment and workplace discrimination are tracked, with measures to protect complainants from retaliation. Human rights requirements are included in business agreements. TCS monitors compliance with laws regarding child labor and forced labor, with no violations reported. Energy consumption data shows a significant increase in renewable energy usage, with a commitment to reducing carbon emissions. TCS has achieved a notable percentage of renewable energy in its total consumption and has implemented energy efficiency initiatives across its operations. The company has set ambitious targets for reducing its carbon footprint and has become carbon neutral in specific regions. Water management practices include optimizing water use through conservation and recycling, with a focus on achieving zero liquid discharge across campuses. The report details the sources of freshwater and the company's efforts in water conservation. Waste management practices are outlined, emphasizing recycling and responsible disposal of e-waste and hazardous materials. TCS does not manufacture products that involve hazardous chemicals, focusing instead on managing waste generated from its operations. The company aims to maximize recycling and minimize landfill waste. Environmental impact assessments are conducted for projects, ensuring compliance with regulations and public communication of results. TCS's operations in ecologically sensitive areas are compliant with environmental approvals. The report reflects TCS's commitment to sustainability and responsible business practices across various dimensions, including energy, water, waste, and human rights. Assets leased by the Company as a lessee, where it assumes most risks and rewards of ownership, are classified as finance leases. These leases are recorded at the lower of fair value or present value of minimum lease payments at the lease's inception, with a corresponding liability recognized. Lease payments are divided between liability repayment and interest cost to maintain a consistent interest rate on the outstanding liability each year. Leases where ownership risks and rewards remain with the lessor are classified as operating leases. Payments for operating leases are recognized on a straight-line basis over the lease term, unless the lease specifies inflation-related increases. Costs and expenses are recognized when incurred and categorized by nature. The Company’s costs are mainly divided into employee benefits, depreciation and amortization, and other operating expenses. Employee benefits include compensation, allowances, fund contributions, and welfare expenses. Other operating expenses encompass fees for external consultants, facility operation costs, travel expenses, equipment and software license costs, communication expenses, and allowances for bad debts. The functional currency of the Company is the Indian rupee. Foreign currency transactions are recorded at the exchange rate on the transaction date. Monetary assets and liabilities in foreign currencies are translated at the exchange rate on the balance sheet date, with exchange gains and losses recognized in the profit and loss statement. Non-monetary assets and liabilities measured at historical cost in foreign currencies are not retranslated. Income tax expense includes current tax and changes in deferred tax assets or liabilities during the year. Current and deferred taxes are recognized in the profit and loss statement unless related to items recognized in other comprehensive income or equity, in which case they are recognized accordingly. Current income tax expense includes taxes payable by the Company and its branches in India and abroad. The Indian current tax is based on worldwide income after accounting for tax relief for exports from Special Economic Zones. Taxes paid by overseas branches are computed according to local tax laws."
"Advance taxes and provisions for current income taxes are presented in the balance sheet after offsetting amounts in the same tax jurisdiction. Deferred income tax is recognized using the balance sheet approach for temporary differences between tax bases and carrying amounts of assets and liabilities. Deferred tax assets are recognized only if it is probable that taxable profits will be available to utilize them. The carrying amount of deferred tax assets is reviewed regularly and adjusted if it is no longer probable that they will be utilized. Financial instruments are recognized when the Company enters into contractual agreements. They are initially measured at fair value, with transaction costs directly attributable to their acquisition added or deducted from the fair value. Cash equivalents are defined as highly liquid financial instruments that can be quickly converted to cash with minimal risk of value change, and they include unrestricted bank balances. Financial assets are measured at amortized cost if held to collect contractual cash flows that consist solely of principal and interest payments. Financial assets are measured at fair value through other comprehensive income if they are held to collect cash flows and for selling. The Company has elected to present changes in fair value of certain equity investments in other comprehensive income. Financial assets are measured at fair value through profit or loss unless they are measured at amortized cost or fair value through other comprehensive income. Transaction costs for these assets are recognized immediately in profit or loss. Financial liabilities are measured at amortized cost using the effective interest method. Equity instruments represent residual interests in the Company’s assets after liabilities are deducted and are recognized at proceeds received minus direct issue costs. The Company uses certain foreign exchange contracts as hedging instruments for foreign exchange risks, accounting for them as cash flow hedges. The effectiveness of these hedges is assessed at inception and on an ongoing basis, with any ineffective portion recognized in profit and loss. Investment in subsidiaries is recorded at cost less any impairment. Property, plant, and equipment are recorded at cost, less accumulated depreciation and impairment losses. Depreciation is calculated based on estimated useful lives, which are reviewed at each reporting period. Intangible assets are recorded at cost less accumulated amortization and impairment. They include rights under licensing agreements and software licenses, amortized over their useful lives. The Company assesses financial assets for impairment at each balance sheet date, recognizing expected credit losses through a loss allowance. For non-financial assets, recoverability is evaluated whenever there are indications that carrying amounts may not be recoverable, determining recoverable amounts on an individual asset basis or for cash-generating units. Defined benefit plans' costs are determined using the Projected Unit Credit Method, with actuarial valuations performed at each balance sheet date. Actuarial gains and losses are recognized in other comprehensive income. Defined contribution plan expenses are recognized when employees provide services that entitle them to benefits. Compensated absences expected to occur beyond twelve months are recognized as a liability at present value. Inventories are valued at the lower of cost and net realizable value, with cost determined on a weighted average basis. Basic earnings per share are calculated by dividing profit attributable to equity shareholders by the weighted average number of equity shares outstanding. The transition to Ind AS from Previous GAAP was executed as of April 1, 2015, with specific exemptions and exceptions applied. Investments in subsidiaries are recorded at Previous GAAP carrying values on the transition date. Reconciliations between Previous GAAP and Ind AS include adjustments for equity, total comprehensive income, and cash flow statements, with detailed explanations for each adjustment. Dividend recognition under Ind AS differs from Previous GAAP, affecting equity reporting. Changes in depreciation methods and fair valuation of investments also resulted in adjustments to equity and net profit. Tax adjustments reflect deferred tax impacts due to differences between Previous GAAP and Ind AS. Actuarial gains and losses under Ind AS are recognized in other comprehensive income, affecting net profit but not total comprehensive income. Vendor consolidation is a strategy aimed at reducing costs and simplifying vendor management by consolidating work from numerous small providers to a select few. This approach not only lowers expenses but also helps clients streamline their cloud transformation efforts. Virtual reality refers to a computer-generated simulation that recreates real-life environments, engaging users through immersive visual and auditory experiences. Virtualization involves abstracting IT resources such as servers and storage, concealing their physical characteristics from users."
"Voluntary attrition indicates a workforce reduction due to employees choosing to leave the organization for personal reasons or new opportunities. XR stands for extended reality, encompassing augmented reality, virtual reality, and mixed reality. Year-on-Year (Y-o-Y) is a term used to compare data from one year to the next. The glossary provided is designed to clarify commonly used terms in the report, with the understanding that certified financial statements take precedence over these definitions. TCS performs annual materiality assessments to identify and prioritize significant economic, environmental, and social issues affecting its business and reputation. Stakeholder interactions help TCS identify a wide range of important issues, which are then prioritized based on their impact. The company considers its role in broader sustainability issues and the influence it has through customer engagements and operations. TCS engages with stakeholders to address critical issues raised through discussions and its own judgment. Corporate governance is essential for fostering trust, overseeing business strategies, and ensuring accountability and ethical behavior. Business sustainability is vital for adapting to technological changes and meeting stakeholder expectations for revenue growth. Talent management is crucial for attracting, developing, and retaining employees, which is key to the company's success. Social responsibility involves aligning business practices with community interests to create long-term value. Environmental stewardship is linked to business sustainability, emphasizing the importance of good environmental practices for operational efficiency. TCS has set a goal to reduce its absolute greenhouse gas emissions by 70% by 2025 and aims for net zero emissions by 2030. The Stakeholder Relationship Committee oversees the company's climate change strategy and performance, meeting biannually to review policies. The Risk Management Committee formulates and monitors the company's risk management policy, including climate-related risks. The Corporate Social Responsibility Committee reviews the company's CSR policy and climate action projects, meeting quarterly. The Chief Operating Officer is responsible for addressing ESG challenges and targets, while the Chief Human Resources Officer oversees climate change mitigation initiatives. TCS has a structured approach to environmental risk assessment, categorizing risks into strategic, operational, financial, compliance, and catastrophic. The company monitors climate-related data and collaborates with internal teams to implement emission reduction initiatives. TCS identifies climate-related risks and opportunities through a comprehensive risk assessment process that includes physical and reputational risks. The company adapts its sustainability strategy in response to emerging regulations and market changes related to climate change. TCS is committed to responsible sourcing and sustainability in its supply chain, emphasizing energy efficiency in procurement. The company invests in research and development to create innovative solutions that help clients achieve sustainability goals. TCS's operations are designed to be environmentally sustainable, incorporating green policies and infrastructure to mitigate climate risks. The company has invested significantly in projects aimed at improving environmental and social impacts, contributing to its emissions reduction efforts. TCS's climate change scenario analysis evaluates risks and opportunities across its value chain, considering macro environmental trends. The company assesses both transition and physical climate risks, using various scenarios to understand potential impacts on operations. TCS has developed strategies to mitigate physical risks associated with climate change, including robust business continuity plans. The organization integrates climate-related risk management into its overall risk management framework. Metrics used to assess climate-related risks include greenhouse gas emissions and the proportion of revenue aligned with climate opportunities. TCS's commitment to sustainability is reflected in its investments in green buildings and energy-efficient technologies. The company actively engages with clients to provide technology-led solutions that support their sustainability initiatives. TCS's approach to climate change includes monitoring compliance with environmental regulations and adapting to emerging legal requirements. The company recognizes the importance of maintaining a positive reputation in light of increasing awareness of climate issues among stakeholders. TCS's campuses are designed to withstand extreme weather events, ensuring operational continuity during disruptions. The organization continuously evaluates its technology and infrastructure to enhance climate resilience and operational efficiency. TCS's sustainability initiatives contribute to its market value and position as a leader in climate action. The company collaborates with suppliers to improve carbon performance and other environmental, social, and governance factors. TCS's climate-related strategies are informed by comprehensive scenario analyses that consider various potential future conditions. The organization prioritizes investments in renewable energy and energy-efficient infrastructure to reduce its carbon footprint. TCS's sustainability efforts are aligned with global frameworks and standards, ensuring transparency and accountability in its practices. The company leverages its expertise in advanced technologies to develop solutions that address climate change challenges. TCS's commitment to sustainability is evident in its proactive approach to managing climate-related risks and opportunities."
"The organization continuously assesses its operations and supply chain for potential climate-related impacts and opportunities. TCS's climate strategy is integrated into its overall business strategy, influencing decision-making across various areas. The company aims to lead in climate action by demonstrating its commitment to sustainability through measurable targets and initiatives. TCS's focus on sustainability is reflected in its comprehensive reporting and engagement with stakeholders on climate-related issues. The organization recognizes the interconnectedness of climate risks and opportunities across its value chain and operations. TCS's sustainability initiatives are designed to create long-term value for both the company and its stakeholders. The company actively seeks to innovate and adapt in response to the evolving landscape of climate change and sustainability. TCS's approach to climate change is characterized by a commitment to transparency, accountability, and continuous improvement. TCS has engaged Ernst & Young LLP to manage and conduct the internal audit of its operations. The audit follows an internal audit plan that is reviewed annually with statutory auditors and the audit committee. The internal audit focuses on assessing internal controls and risks across various operations, including software delivery, finance, procurement, employee engagement, and IT processes, covering subsidiaries and foreign branches. TCS also undergoes periodic audits by specialized third-party consultants for compliance in areas like quality management and information security. The audit committee evaluates reports from management, internal auditors, and statutory auditors, considering suggestions for improvement and ensuring corrective actions are taken. The committee also meets with statutory auditors to discuss the adequacy of internal control systems and keeps the board informed of significant findings. As of March 31, 2018, the audit committee determined that internal financial controls were adequate and functioning effectively. TCS reported a consolidated revenue of over 123,000 crores for the fiscal year 2017-18, showing growth compared to previous years. Revenue from the Americas accounted for a significant portion, followed by Europe, India, and other regions. Employee costs represented a substantial percentage of total revenue, while other operating costs also contributed to overall expenses. The company achieved a profit before tax of over 34,000 crores and a profit after tax attributable to shareholders exceeding 25,000 crores. The financial position of TCS included equity share capital and reserves, with gross block investments in property and equipment increasing. The company reported a healthy net current asset position and a consistent earnings per share figure. The headcount as of March 31, 2018, was nearly 395,000, reflecting growth in workforce size. TCS's funds invested exclude earmarked balances and include investments in mutual funds, government securities, and bank deposits. The total funds invested were reported to be over 45,000 crores. The company’s financial performance ratios indicated a slight increase in employee costs relative to total revenue, while other operating costs showed a decrease. The EBITDA margin remained stable, and profit after tax as a percentage of total revenue decreased slightly compared to the previous year. TCS emphasized its commitment to corporate governance, highlighting the importance of ethical practices and accountability to stakeholders. The company has a robust governance framework, including a Code of Conduct for employees and directors, and complies with SEBI regulations regarding corporate governance. As of March 31, 2018, TCS's board consisted of ten directors, with a majority being non-executive and independent. The board met six times during the year, ensuring compliance with governance standards. The company’s committees include an audit committee, nomination and remuneration committee, and stakeholders' relationship committee, among others. Each committee has specific responsibilities and meets regularly to address various governance and operational matters. The audit committee, chaired by an independent director, held four meetings during the year, focusing on financial oversight and compliance. The nomination and remuneration committee evaluated director performance and recommended remuneration policies. TCS maintained a strong investor relations department to address stakeholder needs and reported a low number of unresolved investor complaints. The company’s remuneration policy aims to attract and retain talent while aligning with industry standards. The general body meetings included annual general meetings, with no extraordinary meetings held during the fiscal year. No special resolutions were passed in the last three AGMs. Overall, TCS demonstrated a commitment to transparency, effective governance, and financial performance, positioning itself as a leader in the IT services sector. The regulatory landscape is evolving with new mandates for credit and operational risk management, emphasizing controls and strategic frameworks. Technology trends include increased cloud adoption, enhanced cybersecurity measures, and a focus on simplifying core platforms through agile and DevOps methodologies."
"The Communication, Media, and Technology sector is experiencing significant growth driven by 5G and fiber rollout, alongside advancements in data analytics and cloud capabilities. Retail and Consumer Business is prioritizing seamless customer experiences, hyper-personalization, and supply chain transformation. Manufacturing is focusing on IT infrastructure modernization, cybersecurity, and energy efficiency initiatives. Life Sciences and Healthcare are investing in digital solutions for connected labs and clinical trials. The ""Others"" category highlights investments in digital marketing, workplace transformation, and intelligent automation. Global economic growth is projected to slow, impacting enterprise technology spending, but opportunities for market share gains remain. Key themes driving client spending include customer experience enhancement and product innovation. The company is adapting to new risks arising from geopolitical tensions and the ongoing effects of the COVID-19 pandemic. A robust enterprise risk management framework is in place to identify and mitigate risks across various levels of the organization. The company is diversifying its business mix to reduce reliance on discretionary spending and is actively monitoring geopolitical developments. Employee well-being initiatives are being implemented to support staff during the pandemic, including vaccination encouragement and mental health resources. The company is also focusing on hybrid work models to ensure business continuity. Talent retention strategies are being enhanced to address global demand and attrition challenges. Restrictions on global mobility are being managed through local hiring and training initiatives. The company is investing in emerging technologies to stay competitive and meet evolving customer expectations. Currency volatility is being mitigated through a comprehensive hedging policy. Data privacy and protection are prioritized, with a global privacy framework in place to ensure compliance with regulations. Cybersecurity measures are being strengthened to address the increasing threat landscape. Compliance with a complex regulatory environment is being managed through a global compliance management framework. Intellectual property risks are being addressed through a robust IP management strategy. Litigation risks are being mitigated through improved governance and legal support. Sustainability risks related to climate change are being managed through environmentally sustainable practices and business continuity planning. The company is engaging in initiatives to promote environmental awareness and responsible sourcing. Opportunities exist to support customers in their climate change mitigation efforts, aligning with the company's net-zero goals. The title deeds for all immovable properties owned by the Company are in its name, except for one building under dispute. The Management conducted physical verification of inventories during the year, and no significant discrepancies were found. The Company has not provided any loans to entities listed under Section 189 of the Act. It has adhered to the provisions of Sections 185 and 186 regarding loans, investments, and guarantees. The Company did not accept deposits during the year and has no unclaimed deposits as of March 31, 2016. Reporting under clause 3(vi) is not applicable as the Company's activities are not covered by the Companies (Cost Records and Audit) Rules, 2014. The Company has been regular in depositing undisputed statutory dues with the relevant authorities. There are no undisputed statutory dues in arrears for over six months as of March 31, 2016. Details of disputed statutory dues, including Income Tax and Sales Tax, are provided. The Company has not defaulted on loan repayments to banks and has no loans from financial institutions or government. It has not raised funds through public offerings or term loans, making clause 3(ix) inapplicable. No fraud has been reported against the Company or by its employees, except for a few minor cases related to expense reimbursements. The Company has paid managerial remuneration in compliance with the relevant provisions of the Act. It is not classified as a Nidhi Company, so clause 3(xii) does not apply. The Company complies with Sections 177 and 188 regarding related party transactions, which are disclosed in the financial statements. There were no preferential allotments or private placements of shares during the year. The Company has not engaged in non-cash transactions with its Directors or related persons. It is not required to register under the Reserve Bank of India Act. The financial statements are prepared in accordance with Indian GAAP and comply with applicable Accounting Standards. The financial statements are based on historical cost, except for certain financial instruments measured at fair value. Estimates and assumptions made in preparing the financial statements may affect reported balances and disclosures. Fixed assets are recorded at cost, excluding certain low-cost items. Depreciation is charged on a straight-line basis for fixed assets, with specific periods defined for different asset types."
"Leases are classified as finance or operating leases based on the risks and rewards of ownership. The Company reviews asset carrying amounts for impairment at each balance sheet date. Long-term investments are stated at cost, with provisions for any permanent diminution in value. Employee benefits are accounted for based on defined contribution and defined benefit plans. Revenue is recognized based on the nature of contracts and services rendered. Current income tax is determined according to the Income Tax Act, and deferred tax assets and liabilities are recognized based on timing differences. Foreign currency transactions are converted at prevailing exchange rates, and gains or losses are recognized in the profit and loss statement. The Company uses derivatives to hedge against foreign currency risks, following a policy approved by the Board of Directors. The company appointed Jigyasa Ved as the Scrutinizer for the AGM and remote e-voting process to ensure fairness and transparency. Members who voted via remote e-voting before the AGM can attend the meeting but cannot vote again. Voting rights are proportional to the shares held as of the cut-off date. New shareholders can obtain login credentials for e-voting by contacting NSDL. To log in to the NSDL e-voting website, users must visit the designated URL and enter their User ID, Password, and Verification Code. Registered users of NSDL eservices can log in using their existing credentials. Users must follow specific instructions based on their shareholding format, whether demat or physical. If users forget their password, they can retrieve it through the website or by contacting NSDL. After logging in, users can cast their votes electronically. Institutional shareholders must send relevant documents to the Scrutinizer via email. It is crucial to keep passwords confidential, as multiple failed login attempts will lock the account. For e-voting queries, shareholders can refer to FAQs or contact NSDL support. Members can register for the AGM through VC/OAVM using their e-voting credentials. Physical shareholders must request email registration from the Registrar and Transfer Agents. The AGM access will be available on a first-come, first-served basis. Members wishing to speak during the AGM must register in advance via email. The Scrutinizer will count votes after the AGM and prepare a report within 48 hours. Results will be published on the company’s website and shared with stock exchanges. The Directors presented the Annual Report along with audited financial statements for the fiscal year. The company reported significant revenue growth compared to the previous year. The COVID-19 pandemic prompted a shift to remote work for employees, ensuring service continuity. The company declared interim and special dividends based on its performance. The retained earnings at the end of the fiscal year were substantial. The company added a significant number of employees, emphasizing diversity and inclusion. Employee satisfaction and engagement levels were reported to be high. The company maintained its commitment to quality and completed various industry certifications. It has numerous subsidiaries, with no changes in the nature of their business. The Board of Directors confirmed adherence to accounting standards and effective internal controls. Key managerial personnel were identified, and the performance of the Board and its committees was evaluated. The company held several Board meetings throughout the year, ensuring effective governance. Independent directors confirmed their status and met the criteria for independence. The purchase consideration for the acquisition has been allocated into various categories, including cash, net assets, intangible assets, and goodwill. The total allocation amounts to a specific figure. The revenues and net profit from the acquired entity have not been disclosed in the consolidated financial statements due to their immateriality. Property, plant, and equipment are detailed, showing costs, additions, disposals, and accumulated depreciation over the years. The net carrying amount of these assets is provided for specific dates. Goodwill is reported with a breakdown of its components, including the balance at the beginning of the year, additional amounts from business combinations, and translation exchange differences. The Group conducts annual impairment tests on goodwill, with specific allocations to business units in France. Other intangible assets are categorized, showing costs, additions, and accumulated amortization. The estimated amortization expenses for future years are outlined. Investments are classified into non-current and current categories, detailing various types of investments, their values, and impairments. The report includes information on the market value of quoted investments and the impairment of certain assets. Loans receivables are divided into non-current and current categories, with details on amounts considered good and those that are credit impaired."
"Other financial assets are categorized into non-current and current, detailing security deposits, interest receivables, and other financial assets. Income tax expenses are broken down into current and deferred tax components, with a reconciliation of the expected tax expense to the reported tax expense. Significant components of deferred tax assets and liabilities are provided, along with details on unrecognized deferred tax assets related to business losses. The report discusses ongoing disputes with tax authorities and the potential impact on the financial statements. Other assets are categorized into non-current and current, detailing various types of assets, including contract assets and prepaid expenses. Inventories are reported at lower of cost and net realizable value, with specific categories listed. Trade receivables are divided into non-current and current, with details on amounts considered good and those with allowances for doubtful accounts. Cash and cash equivalents are detailed, including balances with banks and cash on hand. Other balances with banks include earmarked balances and short-term deposits. Share capital is reported, detailing authorized, issued, and fully paid-up shares, along with movements in share capital over the years. The report outlines rights, preferences, and restrictions attached to equity shares, including voting rights and dividend entitlements. Details of shares held by the holding company and its subsidiaries are provided, along with information on significant shareholders. The report discusses the bonus issue of equity shares and the buy-back of shares, including the rationale and impact on share capital. Overall, the financial statements provide a comprehensive overview of the company's financial position, performance, and significant accounting policies. The report provides details on greenhouse gas emissions intensity, specifically Scope 1 and Scope 2 emissions. It includes information on waste generated categorized by type. The report also covers waste recovery through recycling and other recovery operations. Additionally, it details waste disposal methods. Safety-related incidents are documented, including lost time injury frequency rates and work-related injuries. Instances of data breaches involving customer information are reported as a percentage of total cybersecurity events. Complaints under the Sexual Harassment of Women at Workplace Act are included, detailing the number of complaints and their percentage relative to female employees. The concentration of purchases and sales with trading houses and related parties is discussed, along with accounts payable days. Job creation in smaller towns is highlighted. Employee well-being spending is reported as a percentage of total revenue. Gross wages paid to female employees are presented as a percentage of total wages. The sourcing of input materials from MSMEs and local producers is also detailed. The auditor's report states that the consolidated financial statements of Tata Consultancy Services Limited and its subsidiaries have been audited. The financial statements include the balance sheet, profit and loss statement, changes in equity, and cash flow statements for the year ending March 31, 2024. The auditor expresses an opinion that the financial statements provide a true and fair view in accordance with Indian accounting principles. The audit was conducted following the Standards on Auditing, ensuring independence and ethical compliance. Key audit matters were identified, particularly regarding revenue recognition for fixed-price contracts using the percentage of completion method. The complexity of revenue recognition accounting standards is acknowledged, requiring significant judgments and estimates. The auditor tested controls related to revenue recognition and contract cost estimation. The management and board of directors are responsible for the preparation of the financial statements, ensuring they are free from material misstatement. They must maintain adequate accounting records and implement effective internal controls. The auditor's responsibilities include assessing risks of material misstatement and evaluating the appropriateness of accounting policies. The report also addresses legal and regulatory requirements, including compliance with the Companies Act. The auditor confirms that proper books of account have been maintained and that the financial statements comply with Indian Accounting Standards. The report notes that there were no delays in transferring amounts to the Investor Education and Protection Fund. The management represented that no funds were advanced or received with the understanding of lending or investing in other entities. The interim dividend declared by the Holding Company is in accordance with the Companies Act. The report highlights issues with the audit trail feature in accounting software used by the Holding Company and its subsidiaries. The remuneration paid to directors complies with the provisions of the Companies Act. The auditor's report includes an annexure detailing the Companies (Auditor's Report) Order, confirming no adverse remarks were found. The disposals of assets included various categories, with specific amounts recorded for each."
"Translation exchange differences also impacted the financials, leading to adjustments in asset values. The cost of property, plant, and equipment as of a certain date was detailed, along with accumulated depreciation figures from previous years. Disposals and depreciation for the year were noted, along with translation differences affecting accumulated depreciation. The net carrying amount of property, plant, and equipment was provided for a specific date. The net carrying amount of property, plant, and equipment under finance lease arrangements was presented for two consecutive years. Intangible assets were categorized into acquired rights, licensing, and customer-related intangibles, with costs and accumulated amortization detailed for each category. The amortization expense for the subsequent years was estimated. Goodwill figures were reported for two consecutive years, including foreign currency exchange gains and losses. The Group conducts annual impairment tests on goodwill, with specific allocations to business units. The estimated value-in-use for certain cash-generating units was based on future cash flows and growth rates. Investments were classified into non-current and current categories, with details on fair value and amortized cost. The market value of quoted investments was equal to their carrying value. Loans were categorized into non-current and current, with specific amounts for loans to employees and inter-corporate deposits. Other financial assets were divided into non-current and current, with various components listed. The income tax expense included current and deferred tax components, with a reconciliation of expected versus reported tax expenses provided. Significant components of deferred tax assets and liabilities were detailed, along with unrecognized deferred tax assets related to business losses. Other assets were categorized into non-current and current, with specific items listed under each category. Inventories were reported at lower of cost and net realizable value, with details on raw materials and finished goods. Trade receivables were classified into non-current and current, with amounts considered good and doubtful noted. Cash and cash equivalents included balances with banks and other components. Other balances with banks were detailed, including earmarked balances and short-term deposits. Share capital figures were provided, including authorized and paid-up capital, along with details of buy-backs and share movements. The rights and preferences attached to equity shares were explained, including voting rights and dividend entitlements. The shareholding of the holding company and its subsidiaries was reported, along with details of significant shareholders. The company's objectives for capital management were outlined, focusing on maximizing shareholder value and supporting growth. Other equity components were detailed, including capital reserves, securities premium, and retained earnings. The changes in reserves and appropriations were noted, along with the impact of buy-backs on various reserves. The investment revaluation reserve and cash flow hedging reserve were also discussed, highlighting changes during the year. The twentieth Annual General Meeting of Tata Consultancy Services Limited is scheduled for June 30, 2015, at Birla Matushri Sabhagar in Mumbai. The meeting will address the adoption of the audited financial statements for the fiscal year ending March 31, 2015, along with the reports from the Board of Directors and auditors. Members will confirm the payment of interim dividends and declare a final dividend for the financial year 2014-15. A director, Mr. Cyrus Mistry, will be re-appointed as he retires by rotation. The appointment of Deloitte Haskins & Sells LLP as auditors will be ratified for a term until the twenty-first AGM in 2016, with remuneration to be mutually agreed upon. Mr. N. Chandrasekaran will be re-appointed as Chief Executive Officer and Managing Director for five years starting October 6, 2014, with terms of remuneration approved by the Board. Ms. Aarthi Subramanian, appointed as an Additional Director on March 12, 2015, will be considered for a full directorship. She will also be appointed as an Executive Director for three years from March 12, 2015, with remuneration terms approved by the Board. The Board will be authorized to appoint branch auditors for any branch office outside India and fix their remuneration. An explanatory statement regarding items four to eight of the notice is included. Members can appoint proxies to attend and vote at the AGM, with specific conditions regarding proxy appointments. The register of members will be closed from June 9 to June 13, 2015. If the final dividend is approved, it will be paid on July 7, 2015, to beneficial owners and members holding shares in physical form. Members are encouraged to update their bank details and other information with their depository participants. Those holding shares in physical form are advised to consider converting to dematerialized form for better management."
"In case of joint holders, the first holder's name will determine voting rights. Members seeking information about accounts should contact the company in advance. Unclaimed dividends will be transferred to the Investor Education and Protection Fund after seven years. The notice and annual report are being sent electronically to members with registered email addresses, while physical copies are sent to others. Members are encouraged to register their email addresses to support the 'Green Initiative.' E-voting will be available for members, with instructions provided for both electronic and ballot voting. The e-voting period will run from June 27 to June 29, 2015, with specific instructions for casting votes. The scrutinizer will oversee the voting process and report results within three days of the meeting. Results will be published on the company's website and communicated to stock exchanges. The explanatory statement details the appointment of auditors and the re-appointment of the CEO, highlighting Mr. Chandrasekaran's extensive experience and contributions to the company. A comprehensive internal check process is in place to mitigate the risk of non-compliance. TCS' HR Compliance Cell monitors various immigration, employment, and labor laws across all operational countries. The company adopts both reactive and proactive compliance strategies. In FY 2017, TCS achieved consolidated revenue of 117,966 crore, reflecting an 8.6% growth compared to the previous year. Currency exchange rate fluctuations positively influenced revenue by 0.3%. The constant currency revenue growth for the year was 8.3%. Revenue is categorized by industry verticals, geography, and service lines. The major industry verticals include BFSI, Manufacturing, and Retail & Consumer Business. Revenue from the Manufacturing sector significantly outperformed others, driven by cloud adoption and digital transformation initiatives. The Retail and Consumer Business segment experienced slower growth due to challenges in the retail sector, including competition from online retailers. The Communication, Media, and Technology segment saw growth aligned with the company average, benefiting from increased investments in digital initiatives. Key customer spending areas included enhancing user experience, business model transformations, and investments in data analytics. TCS introduced several products and platforms, gaining numerous new customers and filing a significant number of patents. The global economic outlook for 2017 suggests an acceleration in GDP growth, with varying expectations across different regions. TCS anticipates continued investments in digital transformation, focusing on core modernization and intelligent enterprise solutions. A robust enterprise compliance management framework is implemented to ensure adherence to global laws, including employment and data privacy regulations. The company actively monitors changes in regulations worldwide. Key risks include global political and economic uncertainties, which can affect technology spending. TCS mitigates this risk through a diversified business model and by targeting counter-cyclical market segments. Restrictions on global mobility pose challenges for skilled professionals, prompting TCS to increase local hiring and training efforts. Litigation risks are managed through internal controls and a network of legal counsel. Currency volatility impacts revenue reporting, and TCS employs a hedging policy to manage this risk. Data privacy and cyber security are prioritized, with measures in place to protect sensitive information. The complexity of global regulatory compliance is addressed through a comprehensive management framework. Financial results for FY 2017 show growth in revenue, EBITDA, and profit before tax, with a stable net profit margin. Employee benefit expenses increased in line with business growth, while operational expenses remained steady as a percentage of revenue. Other income rose significantly due to effective treasury management. The financial position reflects an increase in shareholders' funds and reserves, with no changes in share capital during the year. Reserves and surplus grew substantially, driven by retained earnings and foreign currency translation adjustments. Overall, TCS continues to focus on innovation, customer-centricity, and strategic investments to navigate the evolving business landscape. TCS engages with various stakeholder groups, including customers, investors, employees, partners, academic institutions, and marginalized groups. Customers are not identified as vulnerable and are engaged through project-related communications and continuous feedback mechanisms. Investors receive updates through press releases and meetings, with quarterly financial statements and annual reports. Employees are engaged through town halls and surveys, focusing on career growth and workplace culture. Partners are involved in regular business reviews and events to strengthen collaboration. Academic institutions are engaged through knowledge exchange and internship opportunities, while suppliers are involved in diversity hiring initiatives and compliance with local laws. TCS also communicates with industry bodies and media to address broader societal concerns. Vulnerable groups, including NGOs and local communities, are engaged to understand their needs and implement CSR projects."
"TCS conducts periodic materiality assessments to identify key economic, environmental, and social topics impacting its business. Stakeholder feedback is shared with the Board to inform decision-making. The company’s ESG strategy incorporates stakeholder inputs to prioritize material topics for sustainability disclosures. TCS provides human rights training to employees, ensuring a high percentage of coverage. The company adheres to minimum wage laws and maintains equal pay for men and women in similar roles. Grievance mechanisms are in place for reporting human rights violations, with a focus on confidentiality and protection against retaliation. The company monitors compliance with human rights laws across its operations and value chain partners. TCS has implemented zero liquid discharge in most of its campuses and optimizes water usage through conservation and recycling efforts. The organization has increased its renewable energy consumption significantly and aims for carbon neutrality through various initiatives. TCS has set ambitious targets to reduce its carbon footprint and is committed to aligning with science-based targets for climate action. The company’s infrastructure is designed to meet green building standards, contributing to its sustainability goals. TCS actively engages in community needs assessments to plan CSR projects effectively. The organization emphasizes ethical behavior and governance in its partnerships and supplier relationships. TCS is dedicated to improving diversity, equity, and inclusion within its workforce. The company regularly assesses its environmental impact and implements corrective actions as needed. TCS maintains transparency in its operations and engages stakeholders to foster responsible business practices. TCS has been a participant in the UN Global Compact since 2006, adhering to its ten principles. The company endorses the Universal Declaration of Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, and the UN Guiding Principles on Business and Human Rights. TCS engages in various community initiatives, including pro-bono technology support for social organizations, education programs, and health and wellness initiatives. The Adult Literacy Program has significantly improved literacy among marginalized groups, empowering women to become income generators and community leaders. TCS's Computer Based Functional Literacy solution is crucial in today's knowledge-driven economy, focusing on essential skills like problem-solving and creativity. The program has expanded to include financial and digital literacy, enhancing livelihoods for participants. The Adult Literacy Program has positively impacted learners, with many encouraging their children to pursue education and reporting increased self-esteem and participation in family decisions. Asha Devi's story exemplifies the transformative power of literacy, enabling her to establish a tailoring school and gain financial independence. The Ignite My Future in School program integrates computational thinking skills into classrooms, reaching students and educators across multiple countries. The program supports educators with resources for virtual learning, especially during the pandemic. The Ignite Innovation Student Challenge encourages students to develop digital solutions for community issues, fostering innovation and recognition for young achievers. TCS's goIT program empowers students to create technology-driven solutions to local problems, with significant participation and impact reported. The program has expanded globally, reaching over 600,000 students and educators. TCS's Youth Employment programs have facilitated skills development and job placements for many undergraduates, enhancing their confidence and mobility. The digital pivot in training programs has allowed greater access for students in rural areas, connecting them with mentors and resources. TCS's entrepreneurship initiatives have trained thousands of students, leading to significant employment opportunities and income enhancements. The BridgeIT program has fostered rural entrepreneurship, enabling individuals to access digital services and improve their communities. Digital Impact Square serves as a social innovation center, leveraging technology for community growth and transformation. TCS collaborates with experts to address pressing social issues through innovative solutions. The company has implemented healthcare programs that enhance access to quality services, utilizing technology for efficient care delivery. TCS supports various social organizations with pro-bono technology services, contributing to significant community impact. The Jal Jeevan Mission project has improved rural water service delivery through digital monitoring and engagement. TCS emphasizes stakeholder capitalism, focusing on long-term sustainability and corporate responsibility. The company’s community investments are largely driven by employee volunteerism, with thousands of hours dedicated to social initiatives. TCS's Youth Employment Program has provided mentorship and exposure to marginalized youth, enhancing their opportunities. Volunteers have played a crucial role in addressing community needs during the COVID-19 pandemic, facilitating access to education and healthcare. TCS has adapted its programs to support remote learning and digital engagement, ensuring continuity in education during challenging times. The company has also focused on building digital infrastructure in rural areas, empowering local entrepreneurs and improving living standards."
"TCS's initiatives have led to increased income and self-esteem for many participants, fostering social mobility and community respect. The organization continues to respond to global challenges with agility, leveraging technology and human capital for impactful solutions. Other expenses include fees to external consultants, facility expenses, travel expenses, communication expenses, bad debts, and other miscellaneous expenses, totaling a significant amount for the years ended March 31, 2021, and 2020. Finance costs encompass interest on lease liabilities, interest on tax matters, and other interest costs, with a notable decrease in total finance costs from 2020 to 2021. Income tax expense is composed of current tax and changes in deferred tax assets or liabilities, with specific recognition rules based on their relation to profit and loss or other comprehensive income. Current income tax expense includes taxes payable by the company and its subsidiaries, both domestically and internationally, with provisions for current income taxes presented net of advance tax paid. Deferred income taxes are recognized using a balance sheet approach, accounting for temporary differences between tax bases and carrying amounts of assets and liabilities, with specific conditions for recognition. The carrying amount of deferred tax assets is reviewed regularly, and adjustments are made if it is no longer probable that sufficient taxable profit will be available. Deferred tax liabilities are recognized for all taxable temporary differences, except for those related to investments in subsidiaries where control over timing exists. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in future years when temporary differences are settled. For operations in Special Economic Zones, deferred tax assets or liabilities are established for temporary differences that reverse after tax holidays end. Minimum Alternate Tax paid is recognized as a deferred tax asset when it is probable that future economic benefits will be realized. The total income tax expense for the year includes current tax and deferred tax components, with a detailed breakdown of current tax expenses for the current year and prior years. The reconciliation of estimated income tax expense at the statutory rate to the reported income tax expense includes various adjustments such as tax holidays, exempt income, and prior year tax effects. Tata Consultancy Services benefits from tax holidays under the Special Economic Zone Act, allowing significant deductions for profits derived from export services. Significant components of net deferred tax assets and liabilities are detailed, showing changes in various categories such as property, employee benefits, and MAT credit entitlement. Gross deferred tax assets and liabilities are presented, highlighting the net position for the years ended March 31, 2021, and 2020. Unrecognized deferred tax assets primarily relate to business losses and tax credits that do not qualify for recognition under accounting standards. The company is liable to pay Minimum Alternate Tax during the tax holiday period, with provisions for carryforward of MAT for future tax liabilities. Unabsorbed business losses have specific expiration timelines based on the year of origination, with certain foreign subsidiaries allowed to carry forward losses indefinitely. Deferred tax liabilities associated with investments in subsidiaries are not recognized due to the intention to reinvest earnings. Direct tax contingencies include ongoing disputes with tax authorities regarding deductions and tax incentives, with contingent liabilities reported for contested tax demands. The company has ongoing inquiries from tax authorities, and management believes that any claims will not succeed upon resolution. The number of years subject to tax assessments varies by jurisdiction, with specific details for major jurisdictions like India, the USA, and the UK. Basic earnings per share is calculated by dividing profit attributable to shareholders by the weighted average number of shares outstanding, with no dilutive securities present. Operating segments are defined based on discrete financial information evaluated by the chief operating decision maker, with business segments identified as reportable. Revenue and expenses directly attributable to segments are reported under each segment, with unallocable expenses disclosed separately. Segment results for the years ended March 31, 2021, and 2020, show revenue from operations and segment results for various business segments. Significant non-cash items are reported for each segment, with total unallocable expenses noted. Geographical revenue is detailed, showing revenue from different regions for the years ended March 31, 2021, and 2020. Geographical non-current assets are allocated based on asset location, with total non-current assets reported for different regions. Capital commitments for property, plant, and equipment are reported for the years ended March 31, 2021, and 2020. Contingencies include direct and indirect tax matters, with ongoing disputes and demands from tax authorities being contested."
"No single customer represents a significant portion of total revenue for the years presented. Legal claims against the company include a notable case involving Epic Systems Corporation, with ongoing appeals and provisions made for potential damages. A letter of comfort has been provided to banks for credit facilities availed by subsidiaries, ensuring continued support for their operations. Contingent liabilities do not include potential interest claims from counterparties. The statement of net assets, profit, and other comprehensive income is presented for the company and its subsidiaries, detailing net assets and shares in profit or loss. The share in total comprehensive income is reported for various subsidiaries, with adjustments arising from consolidation noted. The report includes details on subsidiaries held directly and indirectly, with their respective net assets and shares in profit or loss. Overall, the financial statements provide a comprehensive overview of the company's financial position, performance, and significant accounting policies. Inorganic Growth refers to revenue increases resulting from mergers, acquisitions, or takeovers rather than from the company's own business activities. Involuntary Attrition is the reduction of workforce initiated by the employer, as opposed to employees choosing to leave. IoT stands for the Internet of Things. IP refers to Intellectual Property. KMP denotes Key Managerial Personnel. Market Capitalization is the total market value of a company's outstanding equity shares at a specific time, calculated as Last Trading Price multiplied by the total number of outstanding shares. MEA is an acronym for Middle East and Africa. LatAm stands for Latin America. MFDM™ refers to the Machine First Delivery Model. Location Independent describes a method for organizing globally distributed teams into Agile groups to enhance speed to market in large transformation projects. Agile is a methodology that allows enterprises to adopt Agile practices on a global scale. A Minimum Viable Product is the simplest version of a new product that can be released to users early, allowing for incremental improvements based on user feedback. The Machine First™ Delivery Model integrates analytics, AI, and automation within enterprises to redefine human-machine collaboration for better outcomes. Mobility combines information, convenience, and social media across various devices. Machine Learning is a form of artificial intelligence that enables computers to learn behaviors without explicit programming. MSP stands for Managed Services Provider. MVP refers to Minimum Viable Product. Non-Controlling Interest is the portion of net worth attributed to non-controlling shareholders of subsidiaries. Non-discretionary Spend, also known as Run the Business spend, covers essential IT activities necessary for business operations, remaining stable even in economic downturns. Managed Services involve outsourcing to a single service provider, known as the Managed Services Provider, for comprehensive service delivery to enhance efficiency and scalability. Managed Services Providers are responsible for delivering Managed Services end-to-end. An Options Contract is a hedging tool that gives the buyer the right to buy or sell an asset at a specified price on a future date for a small upfront fee. Platform as a Service (PaaS) is a cloud computing category that provides a platform for developers to build applications over the internet. Pricing refers to the charges to customers for services or projects, which can vary based on the contract type. Private Cloud is a cloud computing model dedicated to a single organization. A Product in technology refers to packaged software available to multiple customers, contrasting with custom software tailored to individual needs. Platforms are technology groups that serve as a foundation for developing applications and processes. Public Cloud is a service model providing IT resources to the public over the internet on a pay-as-you-go basis. R&I stands for Research & Innovation. Realization is the revenue earned per utilized effort, which can fluctuate based on service type and market conditions. Robotic Process Automation automates repetitive tasks that previously required human intervention, though it is best suited for stable processes. Related Party Transactions involve any dealings between a company and its related parties, regardless of pricing. Revenue is the income generated from IT and consulting services, software licenses, and hardware sales. RFP stands for Request for Proposal, a document soliciting bids for IT services. SEZ refers to Special Economic Zones in India with distinct business laws and benefits. SBWS™ stands for Secure Borderless Workspaces, TCS's model for remote work management. The Shareholder Payout Ratio indicates the percentage of earnings distributed to shareholders. Simplification involves streamlining IT architectures by consolidating systems and removing redundancies. Sole Sourced Contracts are non-competitive agreements allowing a single vendor to meet contractual needs."
"Special Economic Zones in India offer unique benefits to promote exports and investments. STEM refers to education in science, technology, engineering, and mathematics. T&M stands for Time and Materials Contract, where customers are billed for actual effort. TCS Pace™ represents TCS's commitment to co-innovation through its various organizational units. TCV stands for Total Contract Value, reflecting the total value of contracts signed in a period. Turnkey Contracts are synonymous with Fixed Price Contracts. Unearned and Deferred Revenue refers to amounts invoiced for services not yet delivered. VR stands for Virtual Reality, which simulates real-life environments. Virtualization abstracts IT resources, masking their physical characteristics from users. Voluntary Attrition is the reduction in workforce due to employees choosing to leave for personal reasons. XR encompasses extended reality, including augmented and virtual reality. Y-o-Y means Year-on-Year. Market risk refers to the potential fluctuations in the fair value or future cash flows of financial instruments due to changes in market prices. This risk can arise from variations in foreign currency exchange rates, interest rates, credit, liquidity, and other market factors. The Group's primary exposure to market risk is related to foreign currency exchange rate fluctuations. Foreign currency exchange rate risk can significantly affect the consolidated profit and loss statement, other comprehensive income, and equity, especially when transactions involve multiple currencies or when assets and liabilities are denominated in currencies different from the functional currency of the entities involved. The Group's operations are influenced by exchange rate fluctuations in the countries where it operates. To manage this risk, the Group employs derivative instruments primarily for hedging foreign exchange exposure. Movements in the functional currencies of the Group's various operations against major foreign currencies can impact revenue from international business. The Group assesses its exposure to exchange rate risks and hedges a portion of these risks in accordance with its risk management policies. The sensitivity of foreign exchange rates is evaluated by aggregating net foreign exchange rate exposure and applying a simultaneous parallel shift of all currencies by a specified percentage against the respective functional currencies. The analysis of unhedged foreign currency exposure is conducted as of the balance sheet date. The Group's unhedged foreign currency exposure as of a specific date includes net financial assets and liabilities in various currencies. A percentage appreciation or depreciation of the functional currency against these foreign currencies would lead to a corresponding increase or decrease in the Group's profit before taxes. The Group's investments are mainly in fixed-rate interest-bearing instruments, resulting in minimal exposure to interest rate risk. Credit risk involves the potential financial loss from a counterparty's failure to meet debt obligations. This risk includes both direct default risk and the risk of creditworthiness deterioration. Credit risk is managed by continuously analyzing credit limits and the creditworthiness of customers. Financial instruments subject to credit risk concentration include trade receivables, loans, investments, and cash equivalents. The Group has inter-corporate deposits with high-rated financial institutions and maintains bank deposits with reputable banks. The maximum exposure to credit risk is represented by the carrying amount of financial assets and contract assets. The Group's customer exposure is diversified, with no single customer accounting for a significant portion of outstanding trade receivables. Geographic concentration of trade receivables and contract assets is analyzed, with specific percentages attributed to different regions. The allowance for expected credit loss on trade receivables is recorded annually, with a reconciliation of the allowance provided. Liquidity risk refers to the risk of the Group being unable to meet its financial obligations. The Group aims to maintain sufficient liquidity to ensure funds are available as needed. It consistently generates cash flows from operations to meet obligations, including lease liabilities. The contractual maturities of significant financial liabilities are detailed, showing amounts due in various time frames. The Group's equity instruments consist of authorized, issued, subscribed, and fully paid-up share capital, with specific details on equity shares and preference shares. The Group's capital management objective is to maximize shareholder value and support business growth. The Group has conducted share buybacks in previous years, extinguishing a portion of its equity shares. The Group accounts for leases by recognizing right-of-use assets and lease liabilities, measuring them at the present value of future lease payments. The Group has elected not to apply certain lease requirements to short-term leases and low-value assets. The right-of-use assets held by the Group are detailed, along with their additions and net carrying amounts. Depreciation on right-of-use assets is recorded annually, with interest on lease liabilities also disclosed."
"Property, plant, and equipment are stated at cost, with depreciation provided on a straight-line basis. The estimated useful lives of assets are reviewed periodically, and impairment losses are recognized when necessary. Capital work-in-progress is reported, with aging details provided for projects in progress. Goodwill represents the excess cost of acquired businesses over the fair value of identifiable assets and is tested for impairment annually. The Group's goodwill is allocated to specific cash-generating units, with sensitivity analyses conducted to assess potential impairment. The balance of goodwill is reported annually, reflecting any translation differences. The financial statements indicate that bad debts and advances written off, along with the allowance for doubtful trade receivables and advances, amounted to a specific figure for the years ending March 31, 2017, and March 31, 2016. Other expenses for the same periods were also reported, contributing to the total expenses for each year. Research and development expenditures, including capital expenditures, were incurred during the fiscal years ending March 31, 2017, and March 31, 2016. Finance costs, calculated at the effective interest rate, primarily consisted of interest expenses for the years in question. Earnings per share, both basic and diluted, showed an increase from one year to the next, reflecting the profit for the year and the weighted average number of equity shares. The Group has engaged in operating lease arrangements for property and equipment, with lease rent expenses reported for the fiscal years ending March 31, 2017, and March 31, 2016. Future minimum lease rental commitments were detailed, showing amounts due within one year, between one and five years, and after five years. The financial instruments were categorized by their carrying value as of March 31, 2017, with a breakdown of financial assets and liabilities. The carrying values of cash, trade receivables, and other financial assets were noted to approximate fair value due to their short-term nature. The fair value hierarchy was explained, detailing the levels based on observable and unobservable inputs used to measure fair value. The investments were classified into different levels, with specific valuations provided for financial assets and liabilities. The Group's exposure to foreign currency exchange rates was highlighted, with various currencies listed that could impact financial performance. Derivative financial instruments were utilized to manage foreign exchange risks, with outstanding contracts reported for cash flow hedges. The movement in cash flow hedging reserves was summarized, showing changes in fair value and the impact on the statement of profit and loss. The Group's sensitivity to foreign currency fluctuations was analyzed, indicating potential impacts on profit before tax. Market risk, particularly related to foreign currency exchange rates, was identified as a significant concern for the Group. Interest rate risk was deemed minimal due to the nature of the Group's investments. Credit risk was assessed, focusing on the potential for financial loss from counterparty defaults. The maximum exposure to credit risk was detailed, with a focus on trade receivables and unbilled revenue. Geographic concentration of credit risk was presented, showing the distribution of trade receivables across different regions. Liquidity risk management was emphasized, with the Group maintaining sufficient liquidity to meet financial obligations. Contractual maturities of significant financial liabilities were outlined, providing a clear picture of the Group's obligations over time. Segment reporting was introduced, with the Group identifying various business segments for financial reporting purposes. Revenue and expenses were allocated to specific segments, with unallocable expenses disclosed separately. Summarized segment information for the years ending March 31, 2017, and 2016 was provided, showing revenue, segment results, and total assets and liabilities for each segment. Geographical revenue allocation was based on customer location, with total revenue figures reported for different regions. Non-current assets were also allocated geographically, reflecting the location of property, plant, and equipment. The report concluded with footnotes clarifying the relationship of certain operations to the United States and the United Kingdom. Tata Consultancy Services De Mexico S.A., De C.V. is one of the subsidiaries of Tata Consultancy Services. The company has various international subsidiaries, including those in Brazil, Chile, Uruguay, France, Denmark, Spain, Luxembourg, Austria, Saudi Arabia, and Switzerland. The report includes the independent auditor's assessment of the internal financial controls over financial reporting for Tata Consultancy Services Limited and its Indian subsidiaries as of March 31, 2018. The Board of Directors of the Holding Company and its Indian subsidiaries are responsible for establishing and maintaining effective internal financial controls. The auditor's role is to express an opinion on the adequacy of these internal controls based on their audit."
"The audit follows the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. The audit involves assessing the risk of material weaknesses and testing the effectiveness of internal controls. Internal financial controls are designed to provide reasonable assurance regarding the reliability of financial reporting and compliance with accounting principles. There are inherent limitations to these controls, including the potential for collusion or management override. The auditor concluded that the Holding Company and its Indian subsidiaries have adequate internal financial controls that were operating effectively as of March 31, 2018. The consolidated financial statements include a balance sheet showing total assets and liabilities, with a breakdown of non-current and current assets and liabilities. The consolidated statements of profit and loss detail revenue from operations and other income, along with expenses and profit before tax. The report also includes a statement of changes in equity, showing movements in share capital and other equity components. The cash flow statement outlines cash flows from operating, investing, and financing activities, highlighting net cash provided by operating activities. The notes to the financial statements provide corporate information, significant accounting policies, and details on revenue recognition. The company is a public limited entity incorporated in India, with Tata Sons Limited as the majority shareholder. The financial statements are prepared in accordance with Indian Accounting Standards and reflect a historical cost basis, except for certain financial instruments measured at fair value. The company consolidates all entities it controls, eliminating inter-company transactions during consolidation. Business combinations are accounted for using the acquisition method, with goodwill recognized for excess purchase consideration. The preparation of financial statements requires management to make estimates and assumptions that affect reported balances and disclosures. Key estimates include impairment of goodwill, useful lives of assets, and valuation of deferred tax assets. Provisions are recognized for present obligations, while contingent liabilities are not recorded in the financial statements. Fair value measurements of financial instruments are based on valuation techniques when market prices are not available. Revenue is recognized primarily from IT and consultancy services, with specific criteria for recognition outlined in the accounting policies. Preference shares offered a fixed cumulative dividend of 1% annually and a variable non-cumulative dividend based on the difference between the declared equity share dividend rate for the year and the average rate for the three preceding years. The consolidated financial statements include notes on shares held by the holding company, subsidiaries, and associates. As of March 31, 2015, Tata Sons Limited held a significant portion of equity shares, maintaining the same number as the previous year. The report details equity shares allotted as fully paid up, including those issued to TCS e-Serve Limited shareholders as part of a sanctioned scheme. Reserves and surplus are categorized into various components, including capital reserves, capital redemption reserves, securities premium reserves, and foreign currency translation reserves. The capital redemption reserve saw a significant increase due to transfers from the profit and loss statement. The general reserve also increased, reflecting adjustments from amalgamation and transfers from surplus. The board recommended a final dividend per equity share during their meeting in April 2015. Long-term borrowings are divided into secured and unsecured loans, with total borrowings showing a slight decrease from the previous year. Deferred tax balances include both liabilities and assets, with net deferred tax liabilities increasing. Other long-term liabilities encompass capital creditors, operating lease liabilities, and other obligations, with a total increase noted. Long-term provisions include employee benefits and provisions for foreseeable losses on long-term contracts, showing a decrease overall. Short-term borrowings consist of secured and unsecured loans, with total short-term borrowings increasing compared to the previous year. Other current liabilities include current maturities of long-term debt, interest accrued, and unclaimed dividends, with total liabilities slightly increasing. Short-term provisions cover employee benefits, proposed dividends, and current income taxes, with total provisions rising. Fixed assets are categorized into tangible and intangible assets, with significant additions and adjustments noted throughout the year. Non-current investments include trade investments and other investments, with a notable decrease in the book value of certain investments. Long-term loans and advances consist of secured and unsecured loans, with a significant increase in total loans and advances. Other non-current assets include interest receivable and long-term bank deposits, with a decrease in total assets. Current investments primarily consist of mutual funds, with a significant increase in their value."
"Inventories are recorded at the lower of cost and net realizable value, with total inventories showing a slight increase. Unbilled revenue includes revenue recognized for efforts on fixed-price contracts, with a decrease noted. Trade receivables are categorized into amounts overdue and others, with a net total increase in receivables. Cash and bank balances include cash equivalents and other bank balances, with a significant increase in total cash and bank balances. Short-term loans and advances consist of secured and unsecured loans, with total loans and advances showing a slight decrease. Other current assets include interest receivable and other miscellaneous assets, with a decrease in total current assets. Revenue from operations includes income from IT services and equipment sales, with a notable increase in total revenue. Other income consists of various sources, including interest income and profit on investments, with a significant increase in total other income. Employee benefit expenses cover salaries, contributions to funds, and staff welfare, with a substantial increase in total expenses. Operation and other expenses include various operational costs, with a significant increase noted. Finance costs primarily consist of interest expenses, showing an increase compared to the previous year. Current tax adjustments reflect changes in provisions for earlier years, with a notable impact on MAT entitlement. The report details subsidiaries, including their voting power percentages, with some changes noted from the previous year. Acquisitions and divestments include significant transactions, such as the acquisition of IT Frontier Corporation and the liquidation of certain subsidiaries. The report also mentions the amalgamation of CMC Limited with the company, pending necessary approvals. TCS was an early adopter of the term 'digital' to describe emerging technologies and invested in building capabilities in workforce reskilling, research, innovation, and partnerships. These investments have positioned TCS as a leader in supporting customers on their Business 4.0 journeys. As digital adoption increases, project sizes have grown, with clients seeking to transform their core operations. TCS's extensive digital capabilities provide clients with the certainty and speed they need for successful transformations, leading to increased market share and preference among customers for digital initiatives. Digital revenues accounted for a significant portion of TCS's total revenue, showing substantial growth compared to the previous year. TCS received high rankings in competitive assessments of digital capabilities from industry analysts. To meet the demands of a rapidly changing technological landscape, TCS's HR strategy focuses on reskilling and transforming its diverse global workforce while fostering a culture of innovation and high performance. The company has leveraged digital technologies to enhance talent acquisition, development, and engagement processes. TCS's commitment to employee development has set industry benchmarks, with a significant number of employees trained in digital skills. TCS's talent acquisition strategy emphasizes hiring the right competencies at the right time, maintaining a mix of lateral hires and trainees. The company is a preferred employer at top engineering campuses and has made strides in recruiting from leading business schools. TCS is recognized as a major job creator in the IT services sector in the United States. TCS promotes diversity and inclusion, adhering to the Tata Code of Conduct and ensuring merit-based compensation. The company has implemented progressive policies to support women in the workplace, making it one of the largest employers of women globally. TCS also focuses on accessibility for differently-abled individuals through its Center of Excellence for Accessibility. Investment in human capital is a key driver of value creation at TCS, with a focus on equipping employees with essential skills. The Digital Learning Platform offers a comprehensive learning ecosystem that combines various learning methods and enhances the employee experience. TCS has established several initiatives to improve employee engagement, including AI-based HR assistants, mentoring chatbots, and platforms for social collaboration. The company also prioritizes employee safety and wellness through various programs. TCS has a robust compliance framework to manage risks associated with global operations, ensuring adherence to immigration, employment, and labor laws. The company has implemented a comprehensive internal financial control system aligned with global best practices, providing assurance regarding financial reporting and operational integrity. TCS's risk management framework addresses key risks such as economic volatility, protectionist trends, and evolving business models. The company actively monitors these risks and implements strategies to mitigate their impact. TCS's commitment to innovation is reflected in its extensive portfolio of products and platforms, which support various industries and enhance operational efficiency. The company anticipates continued growth in digital investments as clients seek to revamp their core operations and embrace new technologies."
"Overall, TCS is well-positioned to navigate the complexities of the global market, leveraging its strengths in digital capabilities, talent development, and risk management to drive future growth. The Board of Directors of each Company in the Group is responsible for overseeing the financial reporting process. The auditors aim to obtain reasonable assurance that the consolidated financial statements are free from material misstatement, whether due to fraud or error, and to issue an opinion in their report. Reasonable assurance is a high level of assurance but does not guarantee that all material misstatements will be detected. Misstatements can arise from fraud or error and are deemed material if they could influence economic decisions of users based on the financial statements. During the audit, professional judgment and skepticism are maintained. Auditors identify and assess risks of material misstatement and design audit procedures to address those risks, obtaining sufficient evidence to support their opinion. The risk of not detecting fraud is higher than that of error due to potential collusion or forgery. Auditors evaluate the overall presentation and content of the financial statements to ensure fair representation of transactions and events. They assess the appropriateness of accounting policies and the reasonableness of estimates made by Management and the Board. Sufficient audit evidence is obtained regarding the financial information of entities within the Group to express an opinion on the consolidated financial statements. The auditors are responsible for directing and supervising the audit of financial information included in the consolidated statements. They conclude on the appropriateness of Management's use of the going concern basis for preparing the financial statements and must disclose any material uncertainties in their report. Audit conclusions are based on evidence obtained up to the date of the audit findings, including any significant deficiencies in internal control identified during the audit. Communication occurs with those charged with governance regarding the audit's scope, timing, and significant findings. The auditors provide a statement on compliance with ethical requirements regarding independence and communicate any relationships that may affect their independence. Key audit matters are determined from discussions with governance and are described in the auditor's report unless prohibited by law or if disclosure could harm public interest. The auditors report on legal and regulatory requirements as mandated by the Companies (Auditor's Report) Order, 2020. They express opinions on compliance with Ind AS and confirm that none of the directors of Group companies are disqualified from being appointed as directors. The auditors assess the adequacy of internal financial controls concerning the consolidated financial statements. They have obtained necessary information for the audit and found that proper books of account have been maintained. The financial statements are in agreement with the relevant books of account. Management has represented that no funds have been advanced or loaned with the understanding that the Holding Company or its subsidiaries would lend or invest in other entities. The auditors have performed procedures to evaluate the internal financial controls and found them adequate and effective. Internal financial controls are designed to provide reasonable assurance regarding reliable financial reporting. However, inherent limitations exist, and material misstatements may not be detected. The auditors believe they have obtained sufficient evidence to support their opinion on internal financial controls. The consolidated balance sheet and statement of profit and loss reflect the financial position and performance of the Group. The Group's total assets and liabilities are detailed, along with equity attributable to shareholders and non-controlling interests. The consolidated statement of profit and loss shows revenue from operations and other income, along with total expenses and profit before tax. Other comprehensive income includes items that may not be reclassified to profit or loss. The statement of changes in equity outlines movements in share capital and reserves, including retained earnings and other comprehensive income. The nature and purpose of various reserves are explained, including capital reserves, general reserves, and retained earnings. The Group's financial statements are prepared in accordance with applicable laws and accounting standards, ensuring transparency and accountability in financial reporting. TCS internally monitors compliance with laws and policies related to child labor, forced labor, sexual harassment, workplace discrimination, and wages at all its offices. There were no observations from local authorities or third parties in India during the fiscal year. No corrective actions are needed as there were no significant risks identified. TCS emphasizes human rights in its core values and has never faced any grievances or complaints related to human rights. The company continuously collects feedback and monitors regulatory developments to enhance its processes."
"TCS adopts a zero-tolerance policy towards human rights issues and complies with all applicable laws in the countries it operates in. When selecting suppliers, TCS conducts thorough due diligence on various ESG factors, including human rights. All value chain partners are expected to adhere to TCS's Code of Conduct, although formal assessments are not conducted. TCS ensures accessibility for differently-abled visitors in compliance with relevant legislation. The company has increased its renewable energy consumption significantly, with a notable rise in the share of renewable electricity used. Total electricity consumption increased due to the resumption of operations and the addition of new offices. TCS's energy consumption includes various sources, with a focus on renewable energy initiatives. The company has achieved zero liquid discharge across all campuses and optimizes water usage through conservation and recycling efforts. TCS's water sources include third-party water, groundwater, and rainwater harvesting. The company has implemented measures to treat and recycle sewage in new campuses. TCS does not have significant air emissions apart from those from diesel generators, and it complies with air quality regulations. The company has set ambitious targets to reduce its greenhouse gas emissions and has committed to achieving net-zero emissions by 2030. TCS has made significant progress in reducing its carbon footprint through green infrastructure and energy efficiency initiatives. The company has also committed to the Science Based Targets initiative to align with climate action goals. TCS's waste management practices include recycling and responsible disposal of various waste types, with a focus on minimizing environmental impact. The company has operations near ecologically sensitive areas and complies with all necessary environmental regulations. TCS has conducted environmental impact assessments for its projects and ensures compliance with environmental laws. The company has achieved carbon neutrality in several regions and continues to work towards reducing its overall emissions. TCS's waste management strategy emphasizes recycling and recovery operations, with a high percentage of waste being processed responsibly. The company does not manufacture products that involve hazardous chemicals, thus avoiding related waste management issues. TCS has implemented a comprehensive approach to energy management, including real-time monitoring systems to optimize energy efficiency across its operations. The company has increased its renewable energy procurement through various initiatives, contributing to a significant portion of its total energy use. TCS's commitment to sustainability is reflected in its green building certifications and energy-efficient practices across its campuses. The company actively engages in initiatives to reduce its environmental impact and enhance operational efficiency. Tata Steel Limited holds 24,400 shares, representing 0.00% of the total shares, with no shares pledged. Tata Power Company Limited has 452 shares, also 0.00% of the total, with no shares pledged. Tata Capital Limited has 200 shares, which is 0.00% of the total, and no shares pledged. The total number of shares held by promoters is 1,447,421,110, accounting for 73.90% of the total shares, with 1.33% pledged. The previous year’s total was 1,446,732,910 shares, or 73.42%, with 2.31% pledged, indicating a decrease of 0.47%. AF-Taab Investment Company Limited began the year with 633,352 shares and sold 22,000 shares, ending with 611,352 shares. Tata Industries Limited started with 1,029,700 shares and sold 666,000 shares, reducing its holding to 363,700 shares. Tata Capital Limited began with 200 shares and sold all, ending with 0 shares. Life Insurance Corporation of India held 48,141,245 shares at the start of the year and increased this to 58,521,537 shares by year-end. Abu Dhabi Investment Authority decreased its shares from 16,325,578 to 14,165,505. The Government of Singapore increased its shares from 9,095,739 to 11,299,187. Oppenheimer Developing Markets Fund decreased from 10,977,181 to 8,309,112 shares. National Westminster Bank Plc saw an increase from 7,706,168 to 8,285,641 shares. Europacific Growth Fund went from 0 to 7,966,000 shares. Lazard Asset Management LLC decreased from 7,793,168 to 7,682,828 shares. Copthall Mauritius Investment Limited increased slightly from 7,264,148 to 7,361,719 shares. Vanguard Emerging Markets Stock Index Fund decreased from 8,550,350 to 7,211,765 shares. Aberdeen Global Indian Equity (Mauritius) Limited decreased from 8,465,000 to 7,122,473 shares. Directors and key managerial personnel had stable shareholdings throughout the year, with no changes reported for Mr. Cyrus Pallonji Mistry, Mr. N. Chandrasekaran, Mr. Ishaat Hussain, and Ms. Aarthi Subramanian. Mr. Rajesh Gopinathan increased his shares from 130 to 1,130 after a purchase. The company’s total indebtedness at the beginning of the financial year was 283.35 crores, with secured loans of 86.24 crores and unsecured loans of 186.61 crores."
"By the end of the year, total indebtedness decreased to 191.06 crores, with secured loans rising to 176.81 crores and unsecured loans dropping significantly. The company’s remuneration for managing directors and key managerial personnel totaled 2,841.09 lakhs, with a ceiling of 288,216.50 lakhs as per the Companies Act. Independent directors received a total of 991.80 lakhs, while other non-executive directors received 252.00 lakhs, bringing total managerial remuneration to 1,243.80 lakhs. The secretarial audit for the financial year confirmed compliance with statutory provisions and good corporate practices. The company maintained proper board processes and compliance mechanisms. The Board of Directors was well-constituted, and meetings were conducted with adequate notice and participation. The global economic environment in 2015 was subdued, with emerging markets experiencing a slowdown. The IT services market grew minimally, with a focus on efficiency and digital technology adoption. TCS operates across various sectors, providing a wide range of IT services and solutions. The company’s strategy focuses on expanding its market presence and strengthening client relationships. TCS has seen growth in its client base, particularly in higher revenue brackets. Digital technology adoption has been a significant focus, with revenues from digital engagements growing substantially. TCS has invested in talent development for digital skills, creating a digital learning platform to enhance employee capabilities. The company’s global delivery model has been a key differentiator, enabling effective service delivery across its operations. The financial statements reflect the movement in cash flow hedging reserves for the years ending March 31, 2021, and March 31, 2020. The intrinsic and time values of hedging instruments are detailed, showing the balance at the beginning and end of the year, along with gains or losses transferred to profit and loss. The company has engaged in derivative instruments that are not part of hedging relationships, with significant notional amounts and varying fair values over the two years. Exchange gains and losses from these instruments have been recognized in the profit and loss statement. The net foreign exchange gains include amounts transferred from the cash flow hedging reserve for both years. A net gain on derivative instruments in the cash flow hedging reserve is expected to be recognized in profit and loss in the following year. The company has assessed the impact of currency fluctuations on its financial performance, with a summary of potential gains or losses from currency appreciation or depreciation. The company is primarily exposed to risks from foreign currency exchange rates, credit, liquidity, and interest rates, and has a risk management policy approved by the Board of Directors. Market risk is defined as the potential fluctuation in the fair value or future cash flows of financial instruments due to market price changes. The company uses derivative instruments to hedge against foreign exchange risks. The sensitivity of foreign exchange rates is evaluated based on net exposures, with potential impacts on profit before taxes outlined for both years. The company has limited exposure to interest rate risk due to its investments in fixed-rate instruments. Credit risk is managed by analyzing the creditworthiness of customers and monitoring concentrations of risk. The maximum exposure to credit risk is detailed, with no single customer representing a significant portion of trade receivables. Liquidity risk management focuses on maintaining sufficient liquidity to meet financial obligations. Geographic concentrations of credit risk are provided, showing the distribution of trade receivables across different regions. Contractual maturities of financial liabilities are outlined for both years, indicating the timing of obligations. The allowance for expected credit losses on trade receivables has increased over the two years. The company’s share capital structure is detailed, with information on authorized, issued, and paid-up shares. The company has a buy-back program that was approved and executed, resulting in the extinguishment of shares. The rights and preferences attached to shares are described, including voting rights and dividend entitlements. The company has a policy for managing leases, recognizing right-of-use assets and lease liabilities. The details of right-of-use assets and their depreciation are provided, along with cash outflows related to leases. The company has capitalized significant amounts into property, plant, and equipment, with a breakdown of costs and accumulated depreciation. The estimated useful lives of various asset types are specified, and impairment assessments are conducted when necessary. The company’s approach to intangible assets is to measure them at cost, with accumulated amortization and impairment considered. The net loss or gain from the revaluation of investments, excluding equities, is recorded in other comprehensive income. Deferred tax is applied to this net loss or gain."
"Cumulative gains from the sale of investments, also excluding equities, are reclassified to the profit and loss statement, with corresponding deferred tax implications. The balance at the end of the year reflects these adjustments. The Group maintains a capital reserve for profits and losses related to its own equity instruments. The securities premium reserve records the premium from share issuance and is utilized per the Companies Act. A capital redemption reserve is created when the company buys back its shares, transferring an equivalent amount from free reserves or securities premium. The general reserve is used for profit transfers from retained earnings for specific appropriations and is not classified as other comprehensive income. The Special Economic Zone reinvestment reserve is established from profits of eligible SEZ units and is designated for acquiring new machinery. The investment revaluation reserve captures cumulative gains and losses from the revaluation of equity and debt instruments at fair value, net of amounts reclassified to retained earnings upon asset disposal. The cash flow hedging reserve reflects the effective portion of gains or losses from hedging instruments for cash flow hedges, which will be reclassified to profit and loss when the hedged transaction occurs. The foreign currency translation reserve accounts for exchange differences from translating financial statements of foreign operations into Indian rupees. Non-current borrowings include secured loans, specifically long-term finance lease obligations, which are backed by property and equipment. Current borrowings consist of unsecured loans, including bank overdrafts. Other financial liabilities are categorized into non-current and current, with non-current liabilities including capital creditors and other obligations. Current liabilities encompass accrued payroll, current finance lease obligations, unclaimed dividends, and liabilities related to customer contracts. Provisions are classified into non-current and current, with non-current provisions for foreseeable losses and current provisions including additional foreseeable losses and other provisions. Other liabilities are also divided into non-current and current, with non-current liabilities primarily related to operating leases. Revenue from operations includes significant sales from equipment and software licenses. Other income comprises various sources, including interest and dividend income, net gains on investments, and foreign exchange gains. Employee benefits expenses cover salaries, provident fund contributions, and staff welfare expenses. Employee benefit obligations are categorized into non-current and current, with non-current obligations including gratuity and defined benefit plans. The Group operates a defined benefit gratuity scheme, providing lump sum payments to employees based on years of service. The change in benefit obligations and plan assets for defined benefit plans is detailed, showing the beginning and ending balances, service costs, interest costs, and remeasurements. The assumptions used for accounting for defined benefit plans include discount rates and expected salary increases. The Group expects to contribute a specified amount to defined benefit plans in the upcoming year. Sensitivity analyses indicate how changes in discount rates and salary growth affect defined benefit obligations. The defined benefit obligations are projected to mature over several years. The provident fund plan is a defined benefit plan, with contributions from both employees and the employer. The Group has no shortfall in the interest cost for the provident fund. Contributions to the provident fund for the year are reported. Superannuation is a defined contribution plan with monthly contributions made by the Group. Other operating expenses include fees to consultants, facility expenses, travel, communication, and bad debts. Research and development expenditures are reported for the year. Lease commitments for operating and finance leases are summarized, detailing future minimum rental commitments. Financial instruments are categorized by their measurement basis, with fair value and amortized cost classifications. The fair value hierarchy is explained, distinguishing between observable and unobservable inputs. The reconciliation of Level 3 fair value measurements shows changes in the balance from the previous year, including disposals and impairments. Derivative financial instruments and hedging activities are also discussed, highlighting their impact on financial statements. Corporate investment in technology is closely linked to GDP growth, and the company relies significantly on discretionary spending from customers, which is influenced by their business outlook. Political instability and economic fluctuations can negatively impact this outlook, leading to decreased spending and limited revenue growth. To mitigate these risks, the company maintains a diverse business mix across various geographies and industries, offers value propositions for all stakeholders, targets counter-cyclical market segments, utilizes long-term contracts, and collaborates with partners and startups for customer transformation initiatives. Restrictions on global mobility pose challenges for distributed software development, as they hinder the movement of skilled professionals."
"Legislative changes regarding work visas can lead to project delays and increased costs, further exacerbated by the impacts of the Covid-19 pandemic. The company addresses these challenges by monitoring the global environment, hiring local talent, utilizing contractors, promoting Location Independent Agile practices, engaging in STEM initiatives to increase engineering talent availability, enhancing brand visibility, and increasing outreach to government and trade bodies. Rapid technological advancements are reshaping technology consumption patterns and creating new competitors, which demands agility from the company. Failure to adapt could result in lost market share and hinder growth. The company focuses on customer-centric strategies, invests in emerging technologies, launches new service practices, promotes thought leadership through the Business 4.0 framework, and maintains strong connections with academia and the startup ecosystem to stay ahead of trends. Litigation risks arise from the company's extensive operations, leading to potential legal disputes and reputational damage. To manage these risks, the company strengthens internal processes, improves governance, promptly addresses potential disputes, and maintains a network of legal counsel across its operating regions. Currency volatility can affect the company's financial performance, particularly with the Indian Rupee as its functional currency. The company employs a currency hedging policy to mitigate the impact of exchange rate fluctuations on its financials. Data protection laws are increasingly stringent, and non-compliance can lead to significant liabilities and reputational harm. The company has established a global privacy policy, appointed Data Protection Officers, and implemented robust data protection controls and training programs to ensure compliance. Cybersecurity threats are a constant concern, and the company invests in advanced security measures, including automated detection solutions and compliance with international security standards, to protect against breaches. As a global entity, the company must navigate complex and evolving regulations across various jurisdictions. Non-compliance can result in penalties and reputational damage. The company collaborates with regulatory bodies, implements a comprehensive compliance management framework, and conducts regular training to ensure adherence to legal obligations. Intellectual property risks include potential infringement of third-party rights and inadequate protection of the company's own IP. The company has established an IP management group, conducts IP audits, and provides training to employees on IP protection. The company's internal financial control systems are aligned with regulatory requirements and designed to ensure reliable financial reporting and compliance. It employs a state-of-the-art ERP system for data management and has appointed external auditors to oversee internal controls. The company has shown consistent revenue growth over the years, with significant increases in both total revenue and profitability. Employee costs represent a substantial portion of total revenue, while other operating costs have remained stable. The company has made substantial investments in various financial instruments, including mutual funds and deposits, to manage its funds effectively. The company’s corporate social responsibility initiatives focus on education, skilling, and community empowerment, reaching a large number of beneficiaries globally. Employees actively participate in volunteering efforts, contributing significant hours to community service. TCS has implemented programs like Ignite My Future in School to enhance computational thinking among students, integrating it into core subjects and providing professional development for educators. The Adult Literacy Program aims to improve literacy rates among marginalized communities, enabling individuals to gain essential skills and enhance their earning potential. TCS collaborates with various stakeholders to support STEM education, helping students develop technology-enabled solutions to real-world problems. The goIT program engages students in technology and computational thinking, fostering skills that prepare them for future careers in the digital economy. The company’s commitment to education and community development reflects its belief in the importance of empowering individuals and fostering inclusive growth. TCS's initiatives are designed to create sustainable pathways for youth and marginalized groups, aligning with national policies and contributing to broader societal goals. The company emphasizes the importance of digital literacy and skills development to bridge the opportunity gap in communities. Through its various programs, TCS aims to create a positive impact on society while also preparing the workforce for the demands of a rapidly changing digital landscape. Tata Consultancy Services Limited benefits from a tax holiday under the Special Economic Zone Act, 2005, which lasts for fifteen years from the start of operations. Units that begin providing services after April 1, 2005, can deduct 100% of profits from service exports for the first five years, followed by 50% for the next five years, and again 50% for the final five years, subject to certain conditions. Since April 1, 2011, profits from SEZ units are subject to Minimum Alternate Tax."
"The significant components of net deferred tax assets and liabilities for the year ending March 31, 2024, include various categories such as property, plant, and equipment, employee benefits, cash flow hedges, and others. The total net deferred tax assets and liabilities amount to a specific figure after accounting for various adjustments and exchange differences. For the year ending March 31, 2023, the components of net deferred tax assets and liabilities also include similar categories, with a total net deferred tax amount reflecting changes from the previous year. Under the Income-tax Act, unabsorbed business losses can expire eight years after their origination, while certain foreign subsidiaries can carry forward losses indefinitely unless there is a significant ownership change. Unrecognised deferred tax assets primarily relate to business losses and tax credits that do not meet recognition criteria under applicable accounting standards. The unabsorbed business losses will expire based on their origination year. Tata Consultancy Services Limited is liable to pay Minimum Alternate Tax during the tax holiday period, and MAT paid can be carried forward for fifteen years to offset future tax liabilities. Deferred tax liability on temporary differences associated with investments in subsidiaries has not been recognised, as the company intends to reinvest these earnings. The company and its subsidiaries face ongoing disputes with income tax authorities regarding the tax treatment of certain expenses and tax incentives. The contingent liability for tax demands received from authorities is significant and is being contested based on management evaluations and tax consultant advice. The number of years subject to tax assessments varies by jurisdiction, with major jurisdictions including India, the United States, and the United Kingdom. Tax filings in India from fiscal 2022 are generally subject to examination. Basic earnings per share is calculated by dividing the profit attributable to equity shareholders by the weighted average number of equity shares outstanding. The company had no potentially dilutive securities during the periods presented. Operating segments are defined as components for which discrete financial information is available and evaluated by the chief operating decision maker. The identified business segments include banking, manufacturing, consumer business, and others. Summarised segment information for the years ending March 31, 2024, and 2023, shows revenue from operations and segment results for each business segment, along with total unallocable expenses and operating income. Geographical revenue is allocated based on customer location, with significant contributions from North America, the United Kingdom, and other regions. Non-current assets are also allocated based on their location. No single customer accounted for 10% or more of the total revenue for the years ending March 31, 2024, and 2023. The group has capital commitments for property, plant, and equipment purchases. The company has ongoing disputes with indirect tax authorities regarding the classification of certain items, with demands being contested. Other claims against the group have not been acknowledged as debts. The company has provided for punitive damages related to a legal claim, which has been recorded as an exceptional item in the financial statements. The company has also given letters of comfort to banks for credit facilities availed by subsidiaries. The statement of net assets, profit, and loss, and other comprehensive income is presented for various entities within the group, showing their respective net assets and shares in profit or loss. Related party transactions include revenue from operations, purchases of goods and services, and contributions to post-employment benefit plans. Balances receivable and payable from related parties are also detailed. Material related party transactions and balances are disclosed, including significant amounts related to specific entities. The remuneration of directors and key executives is determined based on performance and market trends. No funds have been advanced or received by the group with the understanding that they would be lent or invested in other entities. The sitting fees and commissions paid to non-executive directors are specified for the years ending March 31, 2024, and 2023. The board approved post-employment benefits for the outgoing CEO and Managing Director, which have been actuarially valued and recorded as an expense. The Group generates revenue mainly from information technology and consultancy services, which include software development, implementation, licensing, and maintenance services. Revenue from bundled contracts is allocated based on the fair values of each component. For time and material contracts, revenue is recognized as services are provided and costs incurred. Software development revenue is recognized over the contract's duration using the percentage-of-completion method, with losses recognized when likely. Unbilled revenue is recorded on the balance sheet, while excess billings are classified as unearned revenue."
"Business Process Services revenue is recognized as services are delivered. Revenue from sales of systems and products is recognized upon delivery when the customer gains usage rights and no significant service obligations remain. Maintenance contract revenue is recognized evenly over the contract period. Revenue recognition requires evidence of an arrangement, fixed pricing, rendered services, and assured collectability. Revenue is reported net of discounts and taxes. Dividend income is recorded when the right to receive payment is established, while interest income is recognized using the effective interest method. Finance leases are capitalized at the lower of fair value or present value of minimum lease payments, with liabilities recognized accordingly. Operating lease payments are recognized on a straight-line basis over the lease term unless specified otherwise. Costs and expenses are recognized when incurred and categorized by nature, including employee benefits, depreciation, and operating expenses. Employee benefits encompass compensation, allowances, and welfare expenses, while other operating expenses include consultant fees, facility costs, travel, and communication expenses. The functional currency for the Company and its Indian subsidiaries is the Indian rupee, while foreign subsidiaries use their local currencies. Foreign currency transactions are recorded at the exchange rates on transaction dates, and monetary assets and liabilities are restated at balance sheet date rates. Gains and losses from foreign currency transactions are recognized in profit and loss. Non-monetary assets in foreign currencies are not translated. Income tax expense includes current and deferred taxes, with current taxes based on worldwide income and applicable local laws. Deferred taxes are recognized for temporary differences, with assets recognized only if future taxable profits are probable. Financial instruments are recognized when the Group enters into contracts, initially measured at fair value. Cash equivalents are highly liquid instruments with short maturities. Financial assets are measured at amortized cost if held to collect cash flows. Financial assets at fair value through other comprehensive income are held for both collecting cash flows and selling. Financial liabilities are measured at amortized cost using the effective interest method. Equity instruments are recognized at proceeds received minus direct costs. The Group uses hedging instruments for foreign exchange risks, with effectiveness assessed regularly. Changes in fair value of hedges are recognized in other comprehensive income. Property, plant, and equipment are recorded at cost, less depreciation and impairment. Depreciation is based on estimated useful lives, which are reviewed annually. Goodwill represents the excess cost of acquired businesses over the fair value of identifiable net assets and is tested for impairment annually. Intangible assets are measured at cost and amortized over their useful lives. Financial assets are assessed for impairment, with expected credit losses recognized for trade receivables. Non-financial assets are evaluated for recoverability, and impairment losses are recognized if carrying amounts exceed recoverable amounts. Defined benefit plans use the Projected Unit Credit Method for cost determination, with actuarial gains and losses recognized in other comprehensive income. Contributions to defined contribution plans are recognized as expenses when services are rendered. Compensated absences are recognized as liabilities when they are not expected to occur within twelve months. Inventories are valued at the lower of cost and net realizable value, with costs determined on a weighted average basis. Basic earnings per share are calculated by dividing profit attributable to equity shareholders by the weighted average number of shares outstanding. The transition to Ind AS from Previous GAAP involved specific exemptions and reconciliations of equity and comprehensive income. The consulting segment generated significant revenue, contributing to the overall financial performance. The total revenue for the fiscal year was substantial, with a notable percentage attributed to time and material contracts. Fixed price contracts also represented a significant portion of the revenue. Revenue from local service delivery was categorized separately from remote delivery, which included services from India and global delivery centers. The revenue mix from these locations showed stability over the fiscal year. Employee costs encompassed salaries, retirement fund contributions, and staff welfare expenses. Overseas business expenses included allowances for employees on international assignments. The total employee-related costs saw a considerable increase, primarily due to a rise in local hires. The percentage of employee costs relative to revenue also increased slightly compared to the previous fiscal year. Other operational expenses included software, communication, travel, rent, and legal fees, all of which contributed to the overall cost structure. EBITDA, excluding one-time rewards, showed a decrease as a percentage of revenue, mainly due to rising employee-related expenses. Other income saw a significant increase, driven by interest income and foreign exchange gains."
"The company engaged in foreign exchange contracts to manage currency risk, adhering to international accounting standards. Depreciation and amortization expenses rose, reflecting changes in asset valuation methods. An exceptional item was recorded due to a change in accounting policy for depreciation. Profit before tax, excluding one-time rewards, increased, although the percentage of revenue decreased slightly. The tax expense also rose but represented a smaller percentage of revenue compared to the previous year. Minority interest increased due to the establishment of a subsidiary in Japan. The net profit, prior to one-time adjustments, showed a slight decrease as a percentage of revenue. The company categorized its segments based on industry and geography, with banking and financial services contributing the largest share of revenue. The manufacturing sector experienced strong growth, driven by digital technology adoption. The telecom sector faced challenges, while media and entertainment showed robust growth. Retail and consumer packaged goods also recorded significant growth, supported by investments in digital capabilities. The company maintained a steady margin across various segments, with the 'others' category showing strong performance overall. The financial position remained stable, with no changes in share capital. Reserves and surplus increased, reflecting retained earnings and transfers to reserves. Short-term and long-term borrowings were secured against assets, with trade payables rising significantly. Deferred tax liabilities and assets were recognized based on timing differences in income. Other liabilities included income received in advance and provisions for dividends. The company reported an increase in short-term provisions, primarily due to proposed dividends and employee benefits."