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You Are Here : Markets  |  Equity   |   Company Profile  |   Reports
Tata Consultancy Services Ltd(Industry :   Computers - Software - Large)
 
BSE Code:532540NSE Symbol: TCSP/E  (TTM): 18.82
ISIN Demat:INE467B01029Div Yield %:3.53EPS   (TTM) :118.32
Book Value (Rs):230.4961874Market Cap (RsCr):438715.78Face Value (Rs) :1
  Change Company 






Notes forming part of the Financial Statements









1) CORPORATE INFORMATION

Tata Consultancy Services Limited (referred to as "TCS Limited" or the "Company") provide consulting-led integrated portfolio of information technology (IT) and IT-enabled services delivered through a network of multiple locations around the globe. The Company's full services portfolio consists of Application Development and Maintenance, Business Intelligence, Enterprise Solutions, Assurance, Engineering and Industrial Services, IT Infrastructure Services, Business Process Outsourcing, Consulting and Asset Leveraged Solutions.

As of March 31, 2013, Tata Sons owned 73.75% of the Company's equity share capital and has the ability to control its operating and financial policies. The Company's registered office is in Mumbai and it has 58 subsidiaries across the globe.

2) SIGNIFICANT ACCOUNTING POLICIES

a) Basis of preparation

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis, except for certain financial instruments which are measured at fair value. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211 (3C) [Companies (Accounting Standards) Rules, 2006, as amended) and the other relevant provisions of the Companies Act, 1956.

b) Use of estimates

The preparation of financial statements requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expense during the year. Example of such estimates include provision for doubtful receivables, employee benefits, provision for income taxes, accounting for contract costs expected to be incurred, the useful lives of depreciable fixed assets and provision for impairment.

c) Fixed Assets

Fixed assets are stated at cost, less accumulated depreciation / amortisation. Costs include all expenses incurred to bring the asset to its present location and condition.

Fixed assets exclude computers and other assets individually costing Rs 50,000 or less which are not capitalised except when they are part of a larger capital investment programme.

d) Depreciation / Amortisation

Depreciation / amortisation on fixed assets, other than freehold land and capital work-in-progress is charged so as to write-off the cost of assets, on the following basis:

Type of asset Method Rate / Period
Leasehold land and buildings Straight line Lease period
Freehold buildings Written down value 5.00%
Factory buildings Straight line 10.00%
Leasehold improvements Straight line Lease period
Plant and machinery Straight line 33.33%
Computer equipment Straight line 25.00%
Vehicles Written down value 25.89%
Office equipment Written down value 13.91%
Electrical installations Written down value 13.91%
Furniture and fixtures Straight line 100%
Intellectual property/ distribution rights Straight line 24-60 months
Rights under licensing agreement Straight line License period

Fixed assets purchased for specific projects are depreciated over the period of the project,

e) Leases

Assets taken on lease by the Company in its capacity as lessee, where the Company has substantially all the risks and rewards of ownership are classified as finance lease. Such a lease is capitalised at the inception of the lease at lower of the fair value or the present value of the minimum lease payments and a liability is recognised for an equivalent amount. Each lease rental paid is allocated between the liability and the interest cost so as to obtain a constant periodic rate of interest on the outstanding liability for each year.

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor, are recognised as operating leases. Lease rentals under operating leases are recognised in the statement of profit and loss on a straight-line basis.

f) Impairment

At each balance sheet date, the management reviews the carrying amounts of its assets included in each cash generating unit to determine whether there is any indication that those assets were impaired. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. Recoverable amount is the higher of an asset's net selling price and value in use. In assessing value in use, the estimated future cash flows expected from the continuing use of the asset and from its disposal are discounted to their present value using a pre-tax discount rate that reflects the current market assessments of time value of money and the risks specific to the asset.

Reversal of impairment loss is recognised immediately as income in the statement of profit and loss.

g) Investments

Long-term investments and current maturities of long-term investments are stated at cost, less provision for other than temporary diminution in value. Current investments, except for current maturities of long-term investments, comprising investments in mutual funds are stated at the lower of cost and fair value.

h) Employee benefits

(i) Post-employment benefit plans

Contributions to defined contribution retirement benefit schemes are recognised as an expense when employees have rendered services entitling them to such benefits.

For defined benefit schemes, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date. Actuarial gains and losses are recognised in full in the statement of profit and loss for the period in which they occur. Past service cost is recognised immediately to the extent that the benefits are already vested, or amortised on a straight-line basis over the average period until the benefits become vested.

The retirement benefit obligation recognised in the balance sheet represents the present value of the defined benefit obligation as adjusted for unrecognised past service cost, and as reduced by the fair value of scheme assets. Any asset resulting from this calculation is limited to the present value of available refunds and reductions in future contributions to the scheme.

(ii) Other employee benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees is recognised during the period when the employee renders the service. These benefits include compensated absences such as paid annual leave, overseas social security contributions and performance incentives.

Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related services are recognised as an actuarially determined liability at the present value of the defined benefit obligation at the balance sheet date.

i) Revenue recognition

Revenues from contracts priced on a time and material basis are recognised when services are rendered and related costs are incurred.

Revenues from turnkey contracts, which are generally time bound fixed price contracts, are recognised over the life of the contract using the proportionate completion method, with contract costs determining the degree of completion. Foreseeable losses on such contracts are recognised when probable.

Revenues from the sale of equipment are recognised upon delivery, which is when title passes to the customer.

Revenues from sale of software licences are recognised upon delivery where there is no customisation required. In case of customisation the same is recognised over the life of the contract using the proportionate completion method.

Revenues from maintenance contracts are recognised pro-rata over the period of the contract.

In respect of Business Process Outsourcing (BPO) services, revenue on time and material and unit priced contracts is recognised as the related services are rendered, whereas revenue from fixed price contracts is recognised as per the proportionate completion method with contract cost determining the degree of completion.

Revenues are reported net of discounts.

Dividends are recorded when the right to receive payment is established. Interest income is recognised on time proportion basis taking into account the amount outstanding and the rate applicable.

j) Taxation

Current income tax expense comprises taxes on income from operations in India and in foreign jurisdictions. Income tax payable in India is determined in accordance with the provisions of the Income Tax Act, 1961. Tax expense relating to foreign operations is determined in accordance with tax laws applicable in countries where such operations are domiciled.

Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, which gives rise to future economic benefits in the form of adjustment of future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax after the tax holiday period. Accordingly, MAT is recognised as an asset in the balance sheet when the asset can be measured reliably and it is probable that the future economic benefit associated with the asset will fructify.

Deferred tax expense or benefit is recognised on timing differences being the difference between taxable income and accounting income that originate in one period and is likely to reverse in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

In the event of unabsorbed depreciation and carry forward of losses, deferred tax assets are recognised only to the extent that there is virtual certainty that sufficient future taxable income will be available to realise such assets. In other situations, deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available to realise these assets.

Advance taxes and provisions for current income taxes are presented in the balance sheet after off-setting advance taxes paid and income tax provisions arising in the same tax jurisdiction for relevant tax paying units and where the Company is able to and intends to settle the asset and liability on a net basis.

The Company offsets deferred tax assets and deferred tax liabilities if it has a legally enforceable right and these relate to taxes on income levied by the same governing taxation laws.

k) Foreign currency transactions

Income and expenses in foreign currencies are converted at exchange rates prevailing on the date of the transaction. Foreign currency monetary assets and liabilities other than net investments in non-integral foreign operations are translated at the exchange rate prevailing on the balance sheet date and exchange gains and losses are recognised in the statement of profit and loss. Exchange difference arising on a monetary item that, in substance, forms part of an enterprise's net investments in a non-integral foreign operation are accumulated in a foreign currency translation reserve.

Premium or discount on foreign exchange forward and currency option contracts are amortised and recognised in the statement of profit and loss over the period of the contract. Foreign exchange forward and currency option contracts outstanding at the balance sheet date, other than designated cash flow hedges, are stated at fair values and any gains or losses are recognised in the statement of profit and loss.

I) Derivative instruments and hedge accounting

The Company uses foreign exchange forward and currency option contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The Company designates these hedging instruments as cash flow hedges.

The use of hedging instruments is governed by the Company's policies approved by the Board of Directors, which provide written principles on the use of such financial derivatives consistent with the Company's risk management strategy.

Hedging instruments are initially measured at fair value, and are remeasured at subsequent reporting dates. Changes in the fair value of these derivatives that are designated and effective as hedges of future cash flows are recognised directly in shareholders' funds and the ineffective portion is recognised immediately in the statement of profit and loss.

Changes in the fair value of derivative financial instruments that do not qualify for hedge accounting are recognised in the statement of profit and loss as they arise.

Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, or exercised, or no longer qualifies for hedge accounting. At that time for forecasted transactions, any cumulative gain or loss on the hedging instrument recognised in shareholders' funds is retained there until the forecasted transaction occurs. If a hedged transaction is no longer expected to occur, the net cumulative gain or loss recognised in shareholders' funds is transferred to the statement of profit and loss for the period.

m) Inventories

Raw materials, sub-assemblies and components are carried at the lower of cost and net realisable value. Cost is determined on a weighted average basis. Purchased goods-in-transit are carried at cost. Work-in-progress is carried at the lower of cost and net realisable value. Stores and spare parts are carried at cost, less provision for obsolescence. Finished goods produced or purchased by the Company are carried at lower of cost and net realisable value. Cost includes direct material and labour cost and a proportion of manufacturing overheads.

n) Provisions, Contingent liabilities and Contingent assets

A provision is recognised when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognised in the financial statements. A contingent asset is neither recognised nor disclosed in the financial statements.

o) Cash and cash equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known amount of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents.

3) SHARE CAPITAL

The Authorised, Issued, Subscribed and Fully paid-up share capital comprises of equity shares and redeemable preference shares having a par value of Rs 1 each as follows:

(Rs crores)
As at March 31, 2013 As at March 31, 2012
Authorised
(i) 225,00,00,000 equity shares of Rs 1 each (March 31, 2012 : 225,00,00,000 equity shares of Rs 1 each) 225.00 225.00
(ii) 100,00,00,000 redeemable preference shares of Rs 1 each (March 31, 2012 : 100,00,00,000 redeemable preference shares of Rs 1 each) 100.00 100.00
325.00 325.00
Issued, Subscribed and Fully paid up
(i) 195,72,20,996 equity shares ofRs 1 each (March 31, 2012 : 195,72,20,996 equity shares of Rs 1 each) 195.72 195.72
(ii) 100,00,00,000 redeemable preference shares of Rs 1 each (March 31, 2012 : 100,00,00,000 redeemable preference shares of Rs 1 each) 100.00 100.00
295.72 295.72

(a) Reconciliation of number of shares

As at March 31, 2013

As at March 31, 2012

Number of shares Amount (Rs crores) Number of shares Amount (Rs crores)
Equity shares
Opening balance 195,72,20,996 195.72 195,72,20,996 195.72
Changes during the year - - - -
Closing balance 195,72,20,996 195.72 195,72,20,996 195.72
Preference shares
Opening balance 100,00,00,000 100.00 100,00,00,000 100.00
Changes during the year - - - -
Closing balance 100,00,00,000 100.00 100,00,00,000 100.00

(b) Rights, preferences and restrictions attached to shares Equity shares

The Company has one class of equity shares having a par value of Rs 1 each. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Preference shares

Preference shares would be redeemable at par at the end of six years from the date of allotment i.e. March 28, 2008, but may be redeemed at any time after 3 years from the date of allotment at the option of shareholder. These shares would carry a fixed cumulative dividend of 1% per annum and a variable non-cumulative dividend of 1% of the difference between the rate of dividend declared during the year on the equity shares of the Company and the average rate of dividend declared on the equity shares of the Company for three years preceding the year of issue of the redeemable preference shares.

(c) Shares held by holding company, its subsidiaries and associates

(Rs crores)
As at March 31, 2013 As at March 31, 2012
Equity shares
Holding Company
144,34,51,698 equity shares (March 31, 2012 : 144,34,51,698 equity shares) are held by Tata Sons Limited 144.35 144.35
Subsidiaries and associates of Holding Company
10,29,700 equity shares (March 31, 2012 : 10,29,700 equity shares) are held by Tata Industries Limited 0.10 0.10
Nil equity share (March 31, 2012 : 20,70,735 equity shares) are held by Tata AIG Life Insurance Company Limited - 0.21
5,90,452 equity shares (March 31, 2012 : 5,90,452 equity shares) are held by Tata Investment Corporation Limited 0.06 0.06
200 equity shares (March 31, 2012 : 200 equity shares) are held by Tata Capital Limited - -
Nil equity share (March 31, 2012 : 3,91,200 equity shares) are held by Tata Global Beverages Limited - 0.04
83,232 equity shares (March 31, 2012 : 83,232 equity shares) are held by Tata International Limited 0.01 0.01
452 equity shares (March 31, 2012 : 452 equity shares) are held by The Tata Power Company Limited - -
Total 144.52 144.77
Preference shares
Holding Company
100,00,00,000 redeemable preference shares (March 31, 2012 : 100,00,00,000 redeemable preference shares) are held by Tata Sons Limited 100.00 100.00
Total 100.00 100.00

(d) Details of shares held by shareholders holding more than 5% of the aggregate shares in the Company

As at March 31, 2013 As at March 31, 2012
Equity shares
Tata Sons Limited, the Holding Company 144,34,51,698 144,34,51,698
73.75% 73.75%
Preference shares
Tata Sons Limited, the Holding Company 100,00,00,000 100,00,00,000
100% 100%

(e) Shares allotted as fully paid up by way of bonus shares (during 5 years preceding March 31, 2013)

The Company allotted 97,86,10,498 equity shares as fully paid up bonus shares by utilisation of Securities premium reserve on June 18, 2009 pursuant to a shareholder's resolution passed by postal ballot on June 12, 2009.

4) RESERVES AND SURPLUS

Reserves and surplus consist of the following reserves:

(Rs crores)
As at As at
March 31, 2013 March 31, 2012
(a) Securities premium reserve 1918.47 1918.47
(b) Foreign currency translation reserve
(i) Opening balance 152.46 101.61
(ii) Addition during the year (net) 22.15 50.85
174.61 152.46
(c) Hedging reserve account (Refer Note 39)
(i) Opening balance (25.96) 11.35
(ii) Addition / (deduction) during the year (net) 81.45 (37.31)
55.49 (25.96)
(d) General reserve
(i) Opening balance 4280.74 3183.14
(ii) Adjustment on amalgamation (Refer Note 29) (44.26) -
(iii) Transferred from surplus in statement of profit and loss 1278.63 1097.60
5515.11 4280.74
(e) Surplus in statement of profit and loss
(i) Opening balance 18235.20 14069.20
(ii) Add: Transferred on amalgamation (Refer Note 29) (103.00) -
(iii) Add : Profit for the year 12786.34 10975.98
30918.54 25045.18
(iv) Less : Appropriations
(a) Interim dividends on equity shares 1761.49 1761.49
(b) Proposed final dividend on equity shares 2544.39 3131.55
(c) Dividend on redeemable preference shares 19.00 22.00
(d) Tax on dividend 712.18 797.34
(e) General reserve 1278.63 1097.60
24602.85 18235.20
32266.53 24560.91

The Board of Directors at its meeting held on April 17, 2013 has recommended a final dividend of Rs 13 per equity share.

5) LONG - TERM BORROWINGS

Long - term borrowings consist of the following: (Rs crores)
As at March 31, 2013 As at March 31, 2012
(a) Secured loans
Long term maturities of obligations under finance lease 81.58 93.47
(b) Unsecured loans
Other borrowings (from entities other than banks) 1.52 2.76
83.10 96.23

Obligations under finance lease are secured against fixed assets obtained under finance lease arrangements.

6) DEFERRED TAX BALANCES

Major components of the deferred tax balances consist of the following:

(Rs crores)
As at March 31, 2013 As at March 31, 2012
(a) Deferred tax liabilities (net)
(i) Foreign branch profit tax 160.27 102.84
(ii) Depreciation and amortisation 8.22 9.83
(iii) Others - 5.43
168.49 118.10
(b) Deferred tax assets (net)
(i) Depreciation and amortisation (74.99) (33.31)
(ii) Employee benefits 126.96 90.98
(iii) Provision for doubtful receivables, loans and advances 67.03 53.44
(iv) Others 29.23 28.63
148.23 139.74

7) OTHER LONG - TERM LIABILITIES

Other long - term liabilities consist of the following:

(Rs crores)
As at March 31, 2013 As at March 31, 2012
(a) Trade payables - 10.63
(b) Other liabilities 251.87 186.96
251.87 197.59
Other liabilities comprise :
Fair value of foreign exchange forward and currency option contracts secured against trade receivables - 41.37
Capital creditors 54.34 31.63
Others 197.53 113.96

8) LONG - TERM PROVISIONS

Long - term provisions consist of the following:

(Rs crores)
As at March 31, 2013 As at March 31, 2012
Provision for employee benefits 269.52 154.78
269.52 154.78

Provision for employee benefits includes provision for gratuity and other retirement benefits.

9) SHORT - TERM BORROWINGS

Short term borrowings consist of the following:

(Rs crores)

As at March 31, 2013

As at March 31, 2012
Secured Loans
From Banks
Overdraft

80.02

-

80.02

-
Bank Overdrafts are secured against book debts.

10) OTHER CURRENT LIABILITIES

Other current liabilities consist of the following:

(Rs crores)
As at March 31, 2013 As at March 31, 2012
(a) Current maturities of long-term debt 1.24 1.24
(b) Current maturities of finance lease obligations 7.58 6.73
(c) Interest accrued but not due on borrowings 0.05 0.05
(d) Income received in advance 683.59 561.18
(e) Unpaid dividends 9.81 8.10
(f) Advance received from customers 46.46 12.47
(g) Other payables 1423.98 1008.79
2172.71 1598.56
Other payables comprises of :
Fair value of foreign exchange forward and currency option contracts secured against trade receivables 57.86 137.01
Statutory liabilities 498.96 337.74
Capital creditors 226.35 153.74
Class action suit settlement consideration (Refer Note 49) 161.63 -
Others 479.18 380.30

Obligations under finance lease are secured against fixed assets obtained under finance lease arrangements.

11) SHORT - TERM PROVISIONS

Short - term provisions consist of the following: (Rs crores)
As at March 31, 2013 As at March 31, 2012
(a) Provision for employee benefits 639.95 506.63
(b) Others
(i) Proposed final dividend on equity shares 2544.39 3131.55
(ii) Proposed dividend on redeemable preference shares 19.00 22.00
(iii) Tax on dividend 435.65 511.59
(iv) Current income taxes (net) 257.15 217.24
3896.14 4389.01

Provisions for employee benefits include provision for compensated absences and other short - term employee benefits.

12) FIXED ASSETS

Fixed assets consist of the following:

Description Gross Block as at April 1, 2012 Additions Deletions / Adjustments Gross Block as at March 31, 2013 Accumulated Depreciation / Amortisation as at April 1, 2012 Depreciation / Amortisation for the year Deletions / Adjustments Accumulated Depreciation / Amortisation as at March 31, 2013 Net book value as at March 31, 2013 Net book value as at March 31, 2012
(i) Tangible assets Freehold land 315.95 9.62 - 325.57 - - - - 325.57 315.95
Leasehold land 92.60 103.62 (2.25) 193.97 (12.68) (2.14) 2.24 (12.58) 181.39 79.92
Freehold buildings 1935.18 687.83 (0.29) 2622.72 (356.15) (95.28) 0.10 (451.33) 2171.39 1579.03
Factory buildings 2.77 - - 2.77 (1.03) (0.20) - (1-23) 1.54 1.74
Leasehold buildings 9.81 - - 9.81 (7.81) (0.53) - (8.34) 1.47 2.00
Leasehold improvements 690.29 87.08 (7.87) 769.50 (317.68) (78.96) (8.98) (405.62) 363.88 372.61
Plant and machinery 10.65 0.02 - 10.67 (10.55) (0.05) - (10.60) 0.07 0.10
Furniture and fixtures 407.18 129.34 3.63 540.15 (347.61) (93.27) (6.60) (447.48) 92.67 59.57
Vehicles 19.08 4.80 (1.76) 22.12 (12.23) (2.38) 1.48 (13.13) 8.99 6.85
Office equipment 827.83 207.15 (2.98) 1032.00 (324.35) (94.19) (8.09) (426.63) 605.37 503.48
Computer equipment 2317.13 558.49 (56.75) 2818.87 (1578.08) (356.76) (31.65) (1966.49) 852.38 739.05
Electrical installations 581.92 174.26 3.19 759.37 (230.06) (71.75) (2.80) (304.61) 454.76 351.86
Total 7210.39 1962.21 (65.08) 9107.52 (3198.23) (795.51) (54.30) (4048.04) 5059.48 4012.16
Previous year 5958.53 1344.67 (92.81) 7210.39 (2594.75) (681.23) 77.75 (3198.23) 4012.16
(ii) Intangible assets
Intellectual property/ distribution rights 12.63 - - 12.63 (11.44) (0.38) - (11.82) 0.81 1.19
Rights under licensing agreement 59.00 4.21 - 63.21 (8.73) (6.97) (3.52) (19.22) 43.99 50.27
Total 71.63 4.21 - 75.84 (20.17) (7.35) (3.52) (31.04) 44.80 51.46
Previous year 71.63 - - 71.63 (13.23) (6.94) - (20.17) 51.46
(iii) Capital work-in-progress 1763.85 1399.82
Grand Total 7282.02 1966.42 (65.08) 9183.36 (3218.40) (802.86) (57.82) (4079.08) 6868.13 5463.44

(a) Additions include fixed assets of Rs 143.07 crores transferred on the amalgamation of Retail Full Serve Limited and Computational Research Laboratories Limited (erstwhile subsidiaries of the Company), with the Company.

(b) Deletions / adjustments include fixed assets of Rs 105.54 crores being the amount of accumulated depreciation transferred on the amalgamation of Retail FullServe Limited and Computational Research Laboratories Limited (erstwhile subsidiaries of the Company), with the Company.

(c) Freehold buildings include Rs 2.67 crores (March 31, 2012 : Rs 2.67 crores) being value of investment in shares of Co-operative Housing Societies and Limited Companies.

(d) Leasehold improvements under finance lease have a net book value of Rs 77.60 crores (March 31, 2012 : Rs 92.57 crores).

(e) Legal formalities relating to conveyance of freehold building having net book value Rs 10.73 crore (March 31, 2012 :Rs 11.59 crore) are pending completion.

(f) Deletions / adjustments include Rs 15.72 crores arising on realignment of depreciation policies of Retail FullServe Limited and Computational Research Laboratories Limited consequent to the amalgamation with the Company.

13) NON - CURRENT INVESTMENTS

Non - current investments consist of the following:

(Rs crores)
In Numbers Currency Face Value Per share Description As at March 31, 2013 As at March 31, 2012
(A) TRADE INVESTMENTS (at cost)
(i) Subsidiary companies
(a) Fully paid equity shares (quoted)
1,54,89,922 INR 10 CMC Limited (b) Fully paid equity shares (unquoted) 379.89 379.89
2,08,19,92,200 Peso 1 TCS Iberoamerica SA (119,78,58,800 shares subscribed during the year) 461.31 165.23
15,75,300 INR 10 APOnline Limited - -
1,300 EUR - Tata Consultancy Services Belgium S.A. 1.06 1.06
66,000 EUR 1000 Tata Consultancy Services Netherlands B.V 402.87 402.87
1,000 SEK 100 Tata Consultancy Services Sverige AB 18.89 18.89
1 EUR - Tata Consultancy Services Deutschland GmbH 1.72 1.72
20,000 USD 10 Tata America International Corporation 452.92 452.92
75,82,820 SGD 1 Tata Consultancy Services Asia Pacific Pte Ltd. 18.69 18.69
10,48,500 INR 10 WTI Advanced Technology Limited 38.52 38.52
3,72,58,815 AUD 1 TCS FNS Pty Limited (3,62,58,815 shares subscribed during the year) 211.72 3.38
10,00,001 GBP 1 Diligenta Limited 429.05 429.05
1,000 USD - Tata Consultancy Services Canada Inc. - -
100 CAD 70653.61 Tata Consultancy Services Canada Inc. 31.25 31.25
51,00,000 INR 10 C-Edge Technologies Limited 5.10 5.10
8,90,000 INR 10 MP Online Limited 0.89 0.89
14,76,000 Dirhams 10 Tata Consultancy Services Morocco SARL AU 8.17 8.17
84,00,000 RAND 1 Tata Consultancy Services (Africa) (PTY) Ltd. 4.92 4.92
1,19,36,313 INR 10 TCS e-Serve Limited (Refer Note 38) 2426.20 2426.20
INR - Retail FullServe Limited (Shares cancelled on amalgamation) - 36.17
18,89,000 INR 10 MahaOnline Limited 1.89 1.89
- QAR - Tata Consultancy Services Qatar S.S.C. 2.44 2.44
1 USD 1 Computational Research Laboratories Inc. (1 share transferred during the year on amalgamation)
(c) Fully paid preference shares (unquoted)
4,20,00,000 GBP 1 Diligenta Limited 10% cumulative redeemable preference shares 363.04 363.04
28,00,000 INR 10 APOnline Limited - 2.80
6% cumulative redeemable preference shares
(ii) Others
Fully paid equity shares (unquoted)
4,63,865 USD 0.001 Yodlee, Inc. - -
25,00,000 INR 10 National Power Exchange Limited 2.50 2.50
1,90,00,000 INR 10 Taj Air Limited 19.00 19.00
69 EUR 297 ALMC HF - -
20,00,000 INR 10 KOOH Sports Private Limited (20,00,000 shares subscribed during the year) 3.00 -
(B) OTHERS
(i) Investment in mutual and other funds (unquoted)
1,000 INR 52610 India Innovation Fund 5.26 1.91
(ii) Bonds and Debentures (unquoted)
15 INR 1000000 10% Housing Urban Development 1.50 1.50
Corporation Limited Bonds (2014)
69 EUR 297 0 % ALMC HF (2014) IDBI 0.12 0.12
180 INR 100000 8% Bonds (2013) - 1.80
10 INR 100000 8% Bonds (2018) Tata Sons Limited 0.10 0.10
- INR - 8.50% non-convertible debentures (2014) - 333.33
900 INR 1000000 9.98% non-convertible debentures (2015) 90.00 -
500 INR 1000000 9.78% non-convertible debentures (2015) 50.00 -
1,520 INR 1000000 9.87% non-convertible debentures (2017) Panatone Finvest Limited 152.00 -
2,000 INR 1000000 9.50% non-convertible debentures (2016) Tata Motors Limited 200.00 -
750 INR 1000000 9.69% non-convertible debentures (2019) 75.00 -
1,250 INR 1000000 10.00 % non-convertible debentures (2019) 125.00 -
5984.02 5155.35
Provision for diminution in value of investments (8.29) (8.29)
5975.73 5147.06
Book value of quoted investments 379.89 379.89
Book value of unquoted investments (net of provision) 5595.84 4767.17
Market value of quoted investments 2093.70 1540.94

The Company has given an undertaking to the Government of Maharashtra not to divest its shareholding in Maha Online Limited except to an affiliate. This equity investment is subject to the restriction as per terms of contractual agreement. The restriction is valid as at March 31, 2013.

The Company has given an undertaking to the investors of KOOH Sports Private Limited not to transfer its shareholding prior to the expiry of thirty-six months from the completion date of the investment agreement except with the prior written consent of the other parties to the agreement. The restriction is valid as at March 31, 2013.

Unquoted debentures include subscription to the privately placed unsecured, unlisted redeemable non-convertible debentures issued by Tata Sons Limited in January 2010 and its subsidiary Panatone Finvest Limited in March 2010 for a consideration of Rs 1000 crores and Rs 200 crores, respectively. The debentures issued by Tata Sons Limited would be redeemable at par in three equal installments at the end of second, third and fourth year, respectively from the date of allotment. The first two installments of the debentures issued by Tata Sons Limited have been redeemed during the years ended March31,2012andMarch31,2013 respectively. The debentures issued by Panatone Finvest Limited have been renewed for a further period of three years with a revised interest rate of 9.50% during the year ended March 31, 2013.

Tata Consultancy Services Morocco SARL AU, a wholly owned subsidiary, is in the process of being voluntarily liquidated.

14) LONG - TERM LOANS AND ADVANCES (Unsecured)

Long - term loans and advances (unsecured) consist of the following:

(Rs crores)
As at March 31, 2013 As at March 31, 2012
(a) Considered good
(i) Capital advances 476.44 327.06
(ii) Security deposits 449.06 387.26
(iii) Loans and advances to employees 7.82 9.05
(iv) Loans and advances to related parties 58.92 541.23
(v) Advance tax (including refunds receivable (net)) 1459.78 978.58
(vi) MAT credit entitlement 1772.31 1443.60
(vii) Other loans and advances 405.88 646.03
(b) Considered doubtful
(i) Loans and advances to related parties 20.22 5.93
Less : Provision for doubtful loans and advances (20.22) (5.93)
4630.21 4332.81
Loans and advances to related parties, considered good, comprise:
Tata Sons Limited 2.74 2.97
TCS FNS Pty Limited 10.19 201.51
TCS Iberoamerica SA - 291.35
CMC Limited 0.60 0.01
Tata Realty And Infrastructure Limited 45.39 45.39
Other loans and advances comprise:
Indirect tax recoverable 52.30 52.30
Inter - corporate deposits - 241.40
Advance against investment - 0.20
Other amounts recoverable in cash or kind for value to be received 353.58 352.13
Loans and advances to related parties, considered doubtful, comprise:
Tata Consultancy Services Morocco SARL AU 20.22 5.93

15) OTHER NON - CURRENT ASSETS

Other non - current assets consist of the following:
(Rs crores)
As at March 31, 2013 As at March 31, 2012
(a) Interest receivable 29.30 126.75
(b) Long - term bank deposits 1851.90 2510.13
1881.20 2636.88

16) CURRENT INVESTMENTS

Current investments consist of the following:

(Rs crores)
In Numbers Currency Face Value Description As at As at
Per share March 31, 2013 March 31, 2012
(A) TRADE INVESTMENTS (at cost)
Fully paid preference shares (unquoted)
28,00,000 INR 10 APOnline Limited 6% cumulative redeemable preference shares 2.80 -
INR - Tata AutoComp Systems Limited 8% cumulative redeemable preference shares - 5.00
(B) OTHERS
(i) Investment in mutual and other funds (unquoted)
30,02,000 INR 10 HDFC Debt Fund for Cancer Cure - 50% Dividend Donation Option 3.00 3.00
69,307.52 INR 1000 TATA Liquid Super High Investment Fund 7.72 -
(ii) Bonds and Debentures (unquoted)
10,000 INR 333333.33 Tata Sons Limited 333.33 333.33
8.50% non-convertible debentures (2013)
INR - Panatone Finvest Limited - 200.00
180 INR 100000 8.75% non-convertible debentures (2013) 8% IDBI Bonds (2013) 1.80 -
348.65 541.33

Unquoted debentures include subscription to the privately placed unsecured, unlisted redeemable non-convertible debentures issued by Tata Sons Limited in January 2010 and its subsidiary Panatone Finvest Limited in March 2010 for a consideration of Rs 1000 crores and Rs 200 crores, respectively. The debentures issued by Tata Sons Limited would be redeemable at par in three equal installments at the end of second, third and fourth year, respectively from the date of allotment. The first two installments of the debentures issued by Tata Sons Limited have been redeemed during the years ended March 31, 2012 and March 31, 2013 respectively. The debentures issued by Panatone Finvest Limited have been renewed for a further period of three years with a revised interest rate of 9.50% during the year ended March 31, 2013.

17) INVENTORIES

Inventories consist of the following:

(Rs crores)
As at March 31, 2013 As at March 31, 2012
(a) Raw materials, sub-assemblies and components 5.63 3.30
(b) Finished goods and Work-in-progress 0.54 0.54
(c) Goods-in-transit 0.17 0.30
6.34 4.14

Inventories are carried at the lower of cost and net realisable value.

18) UNBILLED REVENUE

Unbilled revenue as at March 31, 2013 amounting to Rs 2303.35 crores (March 31, 2012: Rs 1567.47 crores) primarily comprises of the revenue recognised in relation to efforts incurred on turnkey contracts priced on a fixed time, fixed price basis of Rs 1509.25 crores (March 31, 2012: Rs 1208.10 crores).

19) TRADE RECEIVABLES (Unsecured)

Trade receivables (Unsecured) consist of the following:

(Rs crores)
As at As at
March 31, 2013 March 31, 2012
(a) Over six months from the date they were due for payment
(i) Considered good 1557.94 1283.77
(ii) Considered doubtful 146.92 127.78
(b) Others
(i) Considered good 9644.38 7823.95
11349.24 9235.50
Less: Provision for doubtful receivables (146.92) (127.78)
11202.32 9107.72

20) CASH AND BANK BALANCES

Cash and bank balances consist of the following:

(Rs crores)
As at March 31, 2013 As at March 31, 2012
(a) Cash and cash equivalents
(i) Balances with banks
In current accounts 192.48 176.99
In deposit accounts with original maturity less than 3 months 103.77 123.89
(ii) Cheques on hand 17.25 16.37
(iii) Cash on hand 0.77 0.70
(iv) Remittances in transit 9.58 1.02
323.85 318.97
(b) Other bank balances
(i) Earmarked balances with banks 10.53 8.10
(ii) Short - term bank deposits 3719.78 2953.00
4054.16 3280.07

Balances with banks in current accounts do not include fourteen bank accounts having a balance of Rs 1.35 crores (March 31, 2012: Rs 0.31 crore) operated by the Company on behalf of a third party.

21) SHORT - TERM LOANS AND ADVANCES (Unsecured)

Short - term loans and advances (Unsecured) consist of the following:

(Rs crores)
As at March 31, 2013 As at March 31, 2012
(a) Considered good
(i) Loans and advances to employees 162.54 140.09
(ii) Loans and advances to related parties 107.20 176.84
(iii) Other loans and advances 4641.74 1332.81
(b) Considered doubtful
(i) Loans and advances to employees 36.19 32.15
(ii) Other loans and advances 4.40 5.63
Less : Provision for doubtful loans and advances (40.59) (37.78)
4911.48 1649.74
Loans and advances to related parties, considered good, comprise:
Tata Sons Limited - 0.01
TCS FNS Pty Limited 49.46 50.98
Tata Realty And Infrastructure Limited 50.00 100.00
CMC Limited 3.48 1.56
Tata Teleservices Limited 0.04 2.38
Tata AIG General Insurance Company Limited - 0.02
Tata Teleservices (Maharashtra) Limited 0.01 0.01
Tata Consultancy Services Qatar S.S.C. 0.01 21.79
TCS e-Serve Limited 3.98 0.09
Tata Consultancy Services (Africa) (PTY) Ltd. 0.22 -
Other loans and advances, considered good, comprise:
Security deposits 93.65 96.63
Inter - corporate deposits 3116.77 250.00
Indirect tax recoverable 151.95 68.59
Fair value of foreign exchange forward and currency option contracts 178.51 151.77
Advance to suppliers 34.04 32.36
Other amounts recoverable in cash or kind for value to be received 1066.82 733.46
Other loans and advances, considered doubtful, comprise:
Security deposits 2.30 0.50
Advance to suppliers 1.27 1.02
Other amounts recoverable in cash or kind for value to be received 0.83 4.11

22) OTHER CURRENT ASSETS

Other current assets consist of the following:

(Rs crores)
As at March 31, 2013 As at March 31, 2012
(a) Interest receivable 667.74 388.41
(b) Others 14.60 -
682.34 388.41

23) REVENUE FROM OPERATIONS

Revenue from operations consist of revenues from:

(Rs crores)
2013 2012
(a) Information technology and consultancy services 46874.72 36699.26
(b) Sale of equipment and software licenses 1552.24 1405.22
Less : Excise duty (0.82) (0.25)
48426.14 38104.23

24) OTHER INCOME (Net)

Other income (net) consists of the following:

(Rs crores)
2013 2012
(a) Interest income 837.02 658.57
(b) Dividend income 1108.88 2428.00
(c) Profit on redemption of mutual funds and sale of other investments (net) 20.23 12.48
(d) Rent 3.08 1.63
(e) Profit on sale of fixed assets (net) 0.66 0.33
(f) Exchange gain / (loss) (net) 223.05 (432.82)
(g) Miscellaneous income 37.47 16.99
2230.39 2685.18
Interest income comprise:
Interest on bank deposits 515.47 474.59
Interest on inter - corporate deposits 186.03 53.29
Interest on bonds and debentures 108.17 97.74
Interest on loan given to subsidiary 5.77 23.68
Other interest 21.58 9.27
Dividend income comprise:
Dividend from subsidiaries (non-current trade investments) 1107.40 2427.40
Dividend from other non-current investments (trade investments) 0.63 0.40
Dividend from mutual funds (current investments) 0.85 0.20
Exchange gain/ (loss) (net) includes:
Loss on foreign exchange forward and currency option contracts which have been designated as Cash Flow Hedges (Refer Note 39). (246.46) (746.01)

25) EMPLOYEE BENEFIT EXPENSES

Employee benefit expenses consist of the following:

(Rs crores)
2013 2012
(a) Salaries and incentives 15067.12 11933.31
(b) Contributions to-
(i) Provident fund 430.24 359.36
(ii) Superannuation scheme 106.36 91.19
(iii) Gratuity fund 139.07 110.78
(iv) Social security and other plans for overseas employees 294.65 203.39
(c) Staff welfare expenses 1044.28 874.65
17081.72 13572.68

26) OPERATION AND OTHER EXPENSES

Operation and other expenses consist of the following:

(Rs crores)
2013 2012
(a) Overseas business expenses 7487.55 5804.79
(b) Services rendered by business associates and others 3653.10 2587.88
(c) Software, hardware and material costs 2244.88 1934.52
(d) Communication expenses 417.27 372.91
(e) Travelling and conveyance expenses 485.32 391.08
(f) Rent 792.60 635.41
(g) Legal and professional fees 242.69 166.99
(h) Repairs and maintenance 271.93 219.67
(i) Electricity expenses 375.61 292.10
(j) Bad debts written off 15.64 34.31
(k) Provision / (Write back of provision) for doubtful receivables 17.81 (23.85)
(1) Provision for doubtful advances 16.89 7.16
(m) Advances written off/ (written back) 2.54 (1.05)
(n) Recruitment and training expenses 166.06 170.76
(o) Commission and brokerage 35.07 20.08
(p) Printing and stationery 24.99 19.51
(q) Insurance 17.02 15.52
(r) Rates and taxes 75.66 59.96
(s) Entertainment 29.57 20.23
(t) Other expenses 665.95 417.85
17038.15 13145.83
(i) Overseas business expenses comprise:
Travel expenses 669.68 478.70
Employee allowances 6817.87 5326.09
(ii) Repairs and maintenance comprise:
Buildings 123.27 101.83
Office and computer equipment 148.66 117.84
(iii) Software, hardware and material costs includes:
Material costs
(a) Raw materials, sub-assemblies and components consumed 25.02 11.78
(b) Opening stock:
Finished goods and work-in-progress 0.54 0.80
(c) Less: Closing stock:
Finished goods and work-in-progress 0.54 0.54
- 0.26
25.02 12.04
(iv) Other expenses includes:
Stores and spare parts consumed 0.02 0.03

27) FINANCE COSTS

Finance costs consist of the following:

(Rs crores)
2013 2012
Interest expense 30.62 16.40
30.62 16.40

28) Current tax includes additional provision (net) of Rs 39.12 crores (March 31, 2012: Write back of provisions (net) and refunds received Rs 34.99 crores) in domestic and certain overseas jurisdictions relating to earlier years. The impact of MAT entitlement of earlier period isRs 128.97 crores (March 31, 2012: Nil).

29) AMALGAMATION OF COMPANIES

a) Nature of business of amalgamating companies:

Retail FullServe Limited is engaged in the business of providing information technology and business process outsourcing services.

Computational Research Laboratories Limited is engaged in the business of conducting research and development relating to high performance computing and allowing usage of computers, including providing consultation services in the field of information technology. On August 16 2012, the Company has acquired 100% equity share capital of Computational Research Laboratories Limited.

b) Retail FullServe Limited and Computational Research Laboratories Limited - wholly owned subsidiaries of Tata Consultancy Services Limited, have been amalgamated with the Company with effect from April 1, 2012 and October 1, 2012 respectively, in terms of the scheme of amalgamation (Scheme) sanctioned by the High Court of Judicature at Bombay vide their Order dated March 22 , 2013. The Scheme came into effect on April 1, 2013 and pursuant thereto all assets and debts, outstandings, credits, liabilities, benefits under income tax, excise, sales tax (including deferment of sales tax), benefits for and under STPI and special economic zone registrations, duties and obligations of the above mentioned subsidiaries, have been transferred to and vested in the Company retrospectively with effect from April 1, 2012 and October 1, 2012 respectively.

Since the subsidiaries, amalgamated as aforesaid, were wholly owned by the Company, no shares were exchanged to effect the amalgamation.

c) The amalgamations stated above have been accounted for under the "pooling of interests" method as prescribed by Accounting Standard (AS-14) notified under Section 211 (3C) of the Companies Act, 1956. Accordingly, the assets, liabilities and reserves of Retail FullServe Limited and Computational Research Laboratories Limited as at April 1, 2012 and October 1, 2012 respectively, have been taken over at their book values. As stipulated in the scheme of amalgamation, all reserves of the above mentioned subsidiaries have been transferred to the General reserve except for balances lying in the statement of profit and loss asonMarch31,2012and September 30, 2012 respectively, which have been transferred to the surplus in statement of profit and loss of the Company.

The difference between the amounts recorded as investments of the Company and the amount of share capital of Retail FullServe Limited and Computational Research Laboratories Limited have been adjusted in the General reserve.

Accordingly, the amalgamations have resulted in transfer of assets, liabilities and reserves in accordance with the terms of the Scheme at the following summarised values:

(Rs crores)
Particulars Retail FullServe Limited Computational Research Laboratories Limited Total
Appointed date of amalgamation April 1, 2012 October 1, 2012
Assets
Fixed Assets (net) 10.65 27.20 37.85
Deferred tax asset 2.12 - 2.12
Unbilled revenue - 0.14 0.14
Trade receivables 14.86 0.57 15.43
Cash and bank balances 19.33 3.19 22.52
Investments 4.30 - 4.30
MAT credit entitlement 4.13 - 4.13
Loans and advances and other assets 19.01 3.31 22.32
Less: Liabilities
Borrowing - 5.00 5.00
Trade payables, other liabilities and provisions 9.86 25.40 35.26
Total net assets acquired on amalgamation 64.54 4.01 68.55
Less: Adjustment for cancellation of Company's investments in subsidiaries 36.17 163.92 200.09
28.37 (159.91) (131.54)
Less: Transfer of balances of statement of profit and loss of amalgamated companies to the surplus in statement of profit and loss of the Company 64.49 (167.49) (103.00)
Add: Adjustment for alignment of accounting policies (0.11) (15.61) (15.72)
Balance transferred to General Reserve as at
appointed date of amalgamation (36.23) (8.03) (44.26)

30) RETIREMENT BENEFIT PLANS

(a) Defined contribution plans

The Company makes Provident Fund and Superannuation Fund contributions to defined contribution retirement benefit plans for eligible employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The contributions as specified under the law are paid to the Provident Fund set up as a trust by the Company. The Company is generally liable for annual contributions and any shortfall in the fund assets based on the government specified minimum rates of return and recognises such contributions and shortfall, if any, as an expense in the year it is incurred.

The Company recognised Rs 430.24 crores (March 31, 2012: Rs 359.36 crores) for provident fund contributions and Rs 106.36 crores (March 31, 2012: ^ 91.19 crores) for superannuation contributions in the statement of profit and loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

The Company has contributed Rs 123.86 crores (March 31, 2012: Rs 89.55 crores) towards foreign defined contribution plans.

(b) Defined benefit plans

The Company makes annual contributions to the Employees' Group Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of India, a funded defined benefit plan for eligible employees. The scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary for service less than 15 years, three-fourth month's salary for service of 15 years to 19 years and one month salary for service of 20 years and more, payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.

The present value of the defined benefit obligation and the related current service cost were measured using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date.

The following table sets out funded status of the gratuity plan and the amounts recognised in the Company's financial statements as at March 31, 2013.

(Rs crores)
As at March 31, 2013 As at March 31, 2012
i) Change in benefit obligations:
Project benefit obligation, beginning of the year 679.25 552.80
Service cost 112.16 93.56
Interest cost 62.54 50.36
Liabilities transferred on amalgamation 0.61 -
Actuarial loss 16.50 14.48
Benefits paid (40.90) (31.95)
Projected benefit obligation, end of the year 830.16 679.25
ii) Change in plan assets:
Fair value of plan assets, beginning of the year 542.04 494.42
Expected return on plan assets 47.46 40.99
Employers' contributions 40.90 31.95
Benefits paid (40.90) (31.95)
Actuarial gain 4.00 6.63
Fair value of plan assets, end of the year 593.50 542.04
Excess of obligation over plan assets (236.66) (137.21)
Accrued liability (236.66) (137.21)
iii) Net gratuity and other cost:
Service cost 112.16 93.56
Interest on defined benefit obligation 62.54 50.36
Expected return on plan assets (47.46) (40.99)
Net Actuarial losses recognised in the year 12.50 7.85
Net gratuity and other cost 139.74 110.78
Actual return on plan assets 51.46 47.62

iv) Category of assets:

(Rs crores)
As at March 31, 2013 As at March 31, 2012
Insurer managed funds 593.43 541.96
Others 0.07 0.08
Total 593.50 542.04
As at March 31, 2013 As at March 31, 2012
v) Assumptions used in accounting for gratuity plan: % %
Discount rate 8.00 8.50
Salary escalation rate 6.00 6.00
Expected rate of return on plan assets 8.60 8.00

The estimate of future salary increase considered in actuarial valuation takes account of inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employment market.

The expected return on plan assets is determined considering several applicable factors mainly the composition of the plan assets held, assessed risk of asset management, historical results of the return on plan assets and the Company's policy for plan asset management.

(Rs crores)
2013 2012 2011 2010 2009
Experience adjustment
On plan liabilities (18.10) 43.75 35.00 4.93 (16.54)
On plan assets 4.00 6.63 5.67 3.91 6.12
Present value of benefit obligation 830.16 679.25 552.80 452.49 385.23
Fair value of plan assets 593.50 542.04 494.42 420.14 344.16
Excess of obligation over plan assets (236.66) (137.21) (58.38) (32.35) (41.07)

The expected contribution is based on the same assumptions used to measure the Company's gratuity obligations as of March 31, 2013. The Company is expected to contribute Rs 170.36 crores for the year ended March 31, 2014.

31) SEGMENT REPORTING

The Company has identified business segments (industry practice) as its primary segment and geographic segments as its secondary segment.

Business segments are primarily financial services comprising customers providing banking, finance and insurance services, manufacturing companies, companies in retail and consumer packaged goods industries, companies in telecommunication, media and entertainment and others such as energy, resources and utilities. Hi-tech industry practice, life science and healthcare, s-Governance, travel, transportation and hospitality, products, etc.

Revenues and expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly identifiable to specific segment have been allocated on the basis of associated revenues of the segment and manpower efforts. All other expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses.

Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as unallocable. Fixed assets that are used interchangeably among segments are not allocated to primary and secondary segments.

Geographical revenues are allocated based on the location of the customer. Geographic segments of the Company are Americas (including Canada and South American countries), Europe, India and Others.

Year ended March 31, 2013 (Rs crores)
Particulars

Business Segments

Banking, Financial Services and Insurance Manufacturing Retail and Consumer Packaged Goods Telecom, Media and Entertainment Others Total
Revenue 18682.55 4170.77 7369.87 6540.74 11662.21 48426.14

15030.07

2999.36

5140.02

5277.01

9657.77

38104.23

Segment result 5902.33 1157.83 2327.61 1733.57 3184.93 14306.27

4781.54

804.99

1501.74

7630.36

2667.09

11385.72

Unallocable expenses (net) 833.48

704.57

Operating income 13472.79

10681.15

Other income (net) 2230.39

2685.18

Profit before tax 15703.18

13366.33

Tax expense 2916.84

2390.35

Profit for the year 12786.34

10975.98

Segment assets 4634.59 1194.70 1640.52 2196.44 4747.30 14413.55

3645.13

698.94

1083.82

1682.96

4284.27

11395.12

Unallocable assets 28598.59

22863.69

Total assets 43012.14

34258.81

Segment liabilities 750.20 96.86 83.75 169.23 561.69 1661.73

469.45

85.10

76.54

142.20

518.83

1292.12

Unallocable liabilities 8788.16

8110.06

Total liabilities 10449.89

9402.18

Year ended March 31, 2013
Other Information
Capital expenditure (unallocable) 2330.45

1671.63

Depreciation and amortisation (unallocable) 802.86

688.17

Other significant non cash expense (allocable) 7.76 4.70 3.47 18.66 18.29 52.88

1.43

3.94

2.26

5.36

3.58

76.57
Other significant non cash
expense (net) (unallocable) -

The following geographic segments individually contribute 10 percent or more of the Company's revenue or segment assets:

(Rs crores)
Geographic segments Revenue for the year ended March 31, 2013 Segment assets as at March 31, 2013
Americas 28077.52 5247.38

22076.07

4337.03

Europe 11996.17 3988.82

9094.57

2830.68

India 3810.44 3895.45
Previous year figures are in italics.

3309.99

3189.97

32) RELATED PARTY DISCLOSURES

A) Related parties and their relationship
1) Holding Company
Tata Sons Limited
II)(A) Subsidiaries (Direct holding) II)(B) Subsidiaries (Indirect holding)
1. CMC Limited i. CMC Americas Inc.
ii. CMCe-BizInc
2. Tata Consultancy Services Sverige AB
3. Tata Consultancy Services Asia Pacific Pte Ltd. i. Tata Information Technology (Shanghai) Company Limited
ii. Tata Consultancy Services Japan Ltd.
iii. Tata Consultancy Services Malaysia Sdn Bhd
iv. Tata Consultancy Services (China) Co., Ltd.
v. PT Tata Consultancy Services Indonesia
vi. Tata Consultancy Services (Thailand) Limited
vii. Tata Consultancy Services (Philippines) Inc.
viii. Nippon TCS Solution Center Limited (w.e.f. 24.01.2012)
4. TCS Iberoamerica SA i. TCS Solution Center S.A.
ii. Tata Consultancy Services Argentina S.A.
iii. Tata Consultancy Services De Mexico S.A., De C.V.
iv. TCS Inversiones Chile Limitada
v. Tata Consultancy Services Do Brasil Ltda
vi. Tata Consultancy Services Chile S.A.
vii. TATASOLUTION CENTER S.A
viii. TCS Uruguay S.A.
ix. MGDCS.C.
5. Tata Consultancy Services Netherlands BV i. Tata Consultancy Services Luxembourg S.A
ii. Tata Consultancy Services Switzerland Ltd
iii. Tata Consultancy Services France SAS
iv. TCS Italia SRL
v. Tata Consultancy Services Osterreich GmbH (w.e.f. 09.03.2012)
vi Tata Consultancy Services Danmark ApS (w.e.f. 16.03.2012)
vii. Tata Consultancy Services De Espana S.A.
viii. Tata Consultancy Services Portugal Unipessoal Limited
6. TCS FNS Pty Limited i. TCS Financial Solutions Australia Holdings Pty Limited
ii. TCS Financial Solutions Australia Pty Limited
iii. PT Financial Network Services
iv. TCS Management Pty Ltd.
v. TCS Financial Solution (Beijing) Co. Ltd.
7. APOnline Limited
8. Tata America International Corporation i. MS CJV Investments Corporation
9. Tata Consultancy Services Belgium SA
10. Tata Consultancy Services Deutschland GmbH
11. WTI Advanced Technology Limited
12. Tata Consultancy Services Canada Inc.
13. Diligenta Limited i. Diligenta 2 Limited
14. C-Edge Technologies Limited
15. MP Online Limited
16. Tata Consultancy Services Morocco SARL AU
17. Tata Consultancy Services (Africa)(PTY) Ltd. i. Tata Consultancy Services (South Africa) (PTY) Ltd.
18. TCS e-Serve Limited i. TCS e-Serve International Limited
ii. TCS e-Serve America, Inc
19. MahaOnline Limited
20. Retail Full Serve Limited (upto 31.03.2012)
21. Tata Consultancy Services Qatar S. S. C. (w.e.f. 20.12.2011)
22. Computational Research Laboratories Limited (w.e.f. 16.08.2012 upto 30.09.2012)
23. Computational Research Laboratories Inc. (w.e.f. 16.08.2012)

III) Fellow Subsidiaries with whom the Company has transactions

• Infiniti Retail Limited

• Panatone Finvest Limited

• Tata AIG General Insurance Company Limited

• Tata AIA Life Insurance Company Limited (formerly Tata AIG Life Insurance Company Limited)

• Tata Investment Corporation Limited

• Tata Limited

• Tata Asset Management Limited

• Tata Business Support Services Limited

• Tata Capital Limited

• Tata Housing Development Company Limited

• Tata Consulting Engineers Limited

• Tata Sky Limited

• Tata Teleservices Limited (upto 25.03.2013)

• Tata Realty And Infrastructure Limited

• e-Nxt Financials Limited

• Tata Teleservices (Maharashtra) Limited (upto 25.03.2013)

• Tata Industries Limited

• Tata International Limited

• Tata Autocomp Systems Limited

• Drive India Enterprise Solutions Limited

• Nova Integrated Systems Limited

• Tata Lockheed Martin Aerostructures Limited (formerly Tata Aerostructures Limited)

• Tata Capital Housing Finance Limited

• TC Travel And Services Limited

• Tata Securities Limited

• TT Holdings & Services Limited

• Tata Capital Financial Services Limited

• MMP Mobi Wallet Payment Systems Limited (upto 25.03.2013)

• VIOM Networks Limited (upto 26.03.2013)

• Tata Advanced Materials Limited

• Tata Interactive Systems GmbH

• TATA Africa Holdings (Kenya) Limited

• Tata Zambia Limited

• Tata International Singapore Pte Limited (w.e.f. 01.11.2011)

IV) Key Management Personnel

• Mr. N. Chandrasekaran

• Mr. S. Mahalingam (upto 09.02.2013)

• Mr. Rajesh Gopinathan (w.e.f. 10.02.2013)

• Mr. Phiroz Vandrevala (upto 13.05.2011)

B) Transactions with related parties for the year ended March 31, 2013

(Rs crores)

Holding Company Subsidiaries Fellow Subsidiaries Key Management Personnel and their relatives Total
Brand equity contribution 78.84

-

-

-

78.84

52.80

-

-

-

52.80

Purchase of fixed assets

-

3.57 57.79

-

61.36

-

13.55

24.06

-

37.67
Loans and advances given

-

49.78

-

-

49.78

0.01

29.40

0.02

-

29.43

Loans and advances repaid 0.24 33.29 3.18

-

36.71

-

4.74 2.00

-

6.74
Inter-corporate deposits placed

-

-

150.00

-

150.00

-

76.00

100.00

-

116.00

Inter-corporate deposits matured

-

-

200.00

-

200.00

-

76.00

130.00

-

146.00

Purchase of investment 163.92

-

-

-

163.92

-

2.44

-

-

2.44
Redemption of investment 333.33

-

5.00

-

338.33

333.34

6.02

-

-

339.36

Revenue (including reimbursements) 0.37 30896.17 479.30

-

31375.84
7.79

24226.98

465.81

-

24693.98

Interest income 85.01 6.95 32.52

-

124.48

79.87

24.38

28.05

-

132.30

Dividend income

-

1107.40 0.63

-

1108.03

-

2427.40

0.40

-

2427.80

Rent income

-

3.08

-

-

3.08

-

7.62

-

-

7.62
Other income

-

30.91 0.04

-

30.95

-

0.65 0.02

-

0.67
Purchase of goods, services and facilities 0.50 2096.47 356.79

-

2453.76
(including reimbursement)

0.40

1493.41

293.81

-

1787.62

Rent expense 0.86 63.99 1.41 0.06 66.32

0.74

36.75 7.34

0.08

38.37
Provision / (Write back of provision) for

-

13.90 0.24

-

14.14
doubtful receivables, advances (net)

(0.10)

0.34

(5.08)

-

(4.84)

Bad debts written off

-

0.20 0.35

-

0.55

0.10

8.55

3.90

-

72.55
Dividend paid on equity shares 3608.63

-

4.26 0.63 3613.52

2453.82

-

3.74 0.43

2457.39

Dividend on redeemable preference shares 22.00

-

-

-

22.00
paid 7 7.00

-

-

-

11.00

Guarantees

-

1392.76

-

-

1392.76

-

2057.65

-

-

2057.65

Remuneration

-

-

-

15.80 15.80

-

-

-

77.65 77.65

C) Balances with related parties as at March 31, 2013

(Rs crores)
Holding Company Subsidiaries Fellow Subsidiaries Key

Management Personnel and their relatives

Total
Trade receivables, unbilled revenue, loans and 148.94 6236.67 241.44 - 6627.05
advances, other assets (net) 94.75

5644.71*

282.52

0.07

6021.39

Trade payables, income received in advance, 79.78 1293.91 33.24 - 1406.93
advances from customers

53.40

7 705.44 27.37

-

1186.15

Guarantees

-

4627.42 - -

4627.42

-

3389.90

-

-

3389.90

Investment in debentures 625.33

-

200.00 - 825.33

666.66

-

200.00

-

866.66

*An amount of Rs 504.42 crores has been converted into equity during the year ended March 31, 2013. Previous year figures are in italics.

D) Disclosure of material transactions / balances with related parties

(Rs crores)
2013 2012
Purchase of fixed assets
CMC Limited 3.57 13.38
Tata Consulting Engineers Limited 22.66 10.68
Tata Realty And Infrastructure Limited 34.77 13.16
Loans and advances given during the year
Tata Sons Limited - 0.01
Tata Consultancy Services Qatar S. S. C. 0.01 21.79
TCS Financial Solutions Australia Pty Limited 6.74 6.29
Tata Consultancy Services Morocco SARL AU 13.90 -
Computational Research Laboratories Limited 23.00 -
Loans and advances repaid during the year
CMC Limited - 3.70
Tata Teleservices Limited 2.34 2.00
TCS Financial Solutions Australia Pty Limited 11.41 -
Tata Consultancy Services Qatar S. S. C. 21.79 -
Inter-corporate deposits placed
Tata Realty And Infrastructure Limited - 100.00
TCS e-Serve Limited - 16.00
Tata Capital Limited 150.00 -
Inter-corporate deposits matured
Tata Realty And Infrastructure Limited 50.00 100.00
TCS e-Serve Limited - 16.00
Tata Sky Limited - 30.00
Tata Capital Limited 150.00 -
Purchase of investments
Tata Sons Limited 163.92 -
Tata Consultancy Services Qatar S.S.C. - 2.44
Revenue (including reimbursements)
Tata America International Corporation 25638.26 20051.77
Interest income
Tata Sons Limited 85.01 79.87
TCS Financial Solutions Australia Pty Limited 5.25 14.11
Panatone Finvest Limited 19.61 17.50
Dividend income
Tata America International Corporation 557.35 1899.73
TCS e-Serve Limited 35.81 35.81
CMC Limited 19.36 15.49
Tata Consultancy Services Canada Inc. 273.85 116.44
Other income
TCS Financial Solutions Australia Pty Limited 0.08 0.35
Tata Consultancy Services Canada Inc. 0.12 0.30
Diligenta Limited 25.97 -
Rent income
CMC Limited 0.21 0.15
WTI Advanced Technology Limited 0.23 0.23
TCS e-Serve Limited 0.33 0.27
APOnline Limited 0.05 0.05
C-Edge Technologies Limited 2.26 0.92
Purchase of goods, services and facilities (including reimbursement)
CMC Limited 269.92 200.60
CMC Americas Inc. 788.67 535.80
TT Holdings & Services Limited 239.58 186.76
Tata America International Corporation 228.68 136.02
Rent expense
CMC Limited 46.77 20.76
Diligenta Limited 17.22 15.39
Provision / (Write back of provision) for doubtful receivables, advances
(net)
Tata Consultancy Services Morocco SARL AU 13.90 0.34
Tata Teleservices Limited (0.12) (5.12)
TATA Africa Holdings (Kenya) Limited 0.04 (0.25)
Bad debts written off
Tata Consultancy Services Do Brasil Ltda - 7.61
Tata Teleservices Limited 0.01 3.86
Tata AIA Life Insurance Company Limited - 0.02
Tata Consultancy Services De Espana S.A. 0.10 -
Tata Consultancy Services Portugal Unipessoal Limitada 0.09 0.18
Tata Teleservices (Maharashtra) Limited 0.33 -
Dividend paid on equity shares
Tata Sons Limited 3608.63 2453.82
Guarantees given during the year
Diligenta Limited - 1767.43
Tata America International Corporation 1213.26 -
Remuneration to Key Management Personnel
Mr. N.Chandrasekaran 11.69 8.01
Mr. S. Mahalingam (upto 09.02.2013) 4.02 3.53
(Rs crores)
2013 2012
Trade receivables, unbilled revenues, loans and advances, other assets (net)
Tata America International Corporation 4162.40 3532.73
TCS Iberoamerica SA - 316.41
TCS Financial Solutions Australia Pty Limited 111.07 113.68
Trade payables, income received in advance, advances from customers
Tata America International Corporation 453.97 403.08
TCS Financial Solutions Australia Pty Limited 40.17 150.95
CMC Limited 151.07 107.23
Tata Consultancy Services Netherlands BV 20.82 22.39
CMC Americas Inc 145.48 116.32
Guarantees outstanding
Diligenta Limited 2910.88 3076.70
Tata America International Corporation 1208.41 -
Investment in debentures
Tata Sons Limited 625.33 666.66
Panatone Finvest Limited 200.00 200.00

33) OBLIGATIONS TOWARDS OPERATING LEASES

(Rs crores)
Non-cancellable operating lease obligation As at March 31, 2013 As at March 31, 2012
Not later than one year 484.02 365.91
Later than one year but not later than five years 1413.60 1038.92
Later than five years 1175.37 898.52
Total 3072.99 2303.35

Rent expenses ofRs 505.38 crores (Previous year: Rs 359.35 crores) in respect of obligation under non-cancellable operating leases and Rs 287.22 crores (Previous year Rs 276.06 crores) in respect of cancellable opearting leases have been charged to the statement of profit and loss.

34) OBLIGATIONS TOWARDS FINANCE LEASES

(Rs crores)
Assets acquired under finance lease As at March 31, 2013 As at March 31, 2012
(i) Minimum lease payments:
Not later than one year 21.27 20.25
Later than one year but not later than five years 76.87 85.19
Later than five years 67.23 80.40
Total 165.37 185.84
(ii) Present value of minimum lease payments:
Not later than one year 7.58 6.73
Later than one year but not later than five years 37.71 41.20
Later than five years 43.87 52.27
89.16 100.20
Add : Future finance charges 76.21 85.64
Total 165.37 185.84

35) EARNINGS PER EQUITY SHARE (EPS)

(Rs crores)
2013 2012
Net profit for the year 12786.34 10975.98
Less : Preference share dividend (including dividend tax) 22.23 25.57
Amount available for equity shareholders 12764.11 10950.41
Weighted average number of shares 195,72,20,996 195,72,20,996
Earnings per share basic and diluted (Rs) 65.22 55.95
Face value per Equity share (Rs) 1.00 1.00

36) AUDITOR'S REMUNERATION

(Rs crores)
2013 2012
For services as auditors, including quarterly audits 2.52 2.52
For Tax audit 0.42 0.42
For Other services 2.54 2.96
Reimbursement of out-of-pocket expenses 0.14 0.13
For service tax 0.70 0.68

Service tax credit has been / will be availed.

In addition to the above, fees amounting to Rs 1.77 crores (Previous year: Rs 2.06 crores) for attest and other professional services rendered have been paid to firms of chartered accountants in which some of the partners are also partners in the firm of statutory auditors.

37) CONTINGENT LIABILITIES

(Rs crores)
As at March 31, 2013 As at March 31, 2012
Claims against the Company not acknowledged as debts 23.67 21.49
Income tax demands 2589.73 1381.97
Indirect tax demands 62.59 61.44
Guarantees given by the Company on behalf of subsidiaries (See (a) and (b) below) 4627.42 3389.90

(a) The Company has provided guarantees aggregating Rs 2910.88 crores (GBP 353.65 million) (March 31, 2012: Rs 3068.55 crores) (GBP 376.75 million) to third parties on behalf of its subsidiary Diligenta Limited. The Company does not expect any outflow of resources in respect of the above.

(b) The Company has provided guarantees aggregating Rs 1208.41 crores (USD 222.42 million) (March 31, 2012: Nil ) to third parties on behalf of its subsidiary Tata America International Corporation. The Company does not expect any outflow of resources in respect of the above.

38) CAPITAL AND OTHER COMMITMENTS

a) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs 3328.51 crores (March 31, 2012: Rs 1682.98 crores).

b) The Company is required to pay to the seller of TCS e-Serve Limited, amounts received by the subsidiary from tax authorities as refund against taxes paid aggregating Rs 347.85 crores (March 31, 2012: Rs 321.85 crores), which is to be adjusted to the cost of investment of the subsidiary.

c) The Company has undertaken to provide continued financial support to its subsidiaries APOnline Limited and TCS FNS Pty Limited.

d) The Company has a purchase commitment towards India Innovation Fund for the uncalled amount of balance Rs 47389.56 per unit of 1000 units aggregating Rs 4.74 crores (March 31, 2012: Rs 8.10 crores).

39) DERIVATIVE FINANCIAL INSTRUMENTS

The Company, in accordance with its risk management policies and procedures, enters into foreign currency forward and currency option contracts to manage its exposure in foreign exchange rates. The counter party is generally a bank. These contracts are for a period between one day and eight years.

The Company has following outstanding foreign currency option contracts, which have been designated as Cash Flow Hedges, as at:

March 31, 2013

March 31, 2012

Foreign Currency No. of Contracts Notional amount of Currency Options contracts (million) Fair Value (Rs crores) No. of Contracts Notional amount of Currency Options contracts (million) Fair Value (Rs crores)
U.S. Dollar 47 1090.00 (8.81) 81 2185.00 29.56
Sterling Pound 12 123.00 62.59 33 217.50 14.66
Euro 15 102.00 15.66 21 210.00 18.64
Australian dollar - - - 6 30.00 3.34

Net gain on derivative instruments of RS7.05 crores recognised in Hedging reserve as of March 31, 2013, is expected to be reclassified to the statement of profit and loss by March 31, 2014.

The movement in Hedging reserve during the year ended March 31, 2013 and year ended March 31, 2012, for derivatives designated as Cash Flow Hedges is as follows:

(Rs crores)

Year ended March 31, 2013 Year ended March 31, 2012
Balance at the beginning of the year (25.96) 11.35
Changes in the fair value of effective portion of discontinued / matured Cash Flow Hedges during the year 96.46 (723.22)
(Gains) / losses transferred to statement of profit and loss on occurrence of forecasted hedge transaction (79.59) 716.20
Changes in the fair value of effective portion of outstanding Cash Flow Hedges 64.58 (30.29)
Balance at the end of the year 55.49 (25.96)

In addition to the above Cash Flow Hedges, the Company has outstanding foreign exchange forward contracts and currency option contracts with notional amount aggregating to RS0427.63 crores (March 31, 2012: RS222.75 crores) whose fair value showed a gain of RS1.21 crores as on March 31, 2013 (March 31, 2012: loss of RS2.81 crores). Exchange gain of RS71.95 crores (March 31, 2012: Exchange loss of RS92.83 crores) on foreign exchange forward and currency option contracts for the year ended March 31, 2013 have been recognised in the statement of profit and loss.

As of balance sheet date, the Company has net foreign currency exposures that are not hedged by derivative instruments or otherwise amounting to RS75.25 crores (March 31, 2012: RS38.23 crores)

40) MICRO AND SMALL ENTERPRISES

(Rs crores)

As at March 31, 2013

As at March 31, 2012

Principal Interest Principal Interest
Amount due to vendor 5.02 0.08 0.42 -
Principal amount paid (includes unpaid) beyond the appointed date 49.74 - 51.30 -
Interest due and payable for the year - 0.27 - 0.31
Interest accrued and remaining unpaid (includes interest disallowable of Rs 0.97 crore (Previous year: Rs 0.70 crore)) - 0.97 - 0.70

Dues to Micro and Small enterprises have been determined to the extent such parties have been identified on the basis of information collected by the management.

41) INCOME IN FOREIGN CURRENCY

(Rs crores)
2013 2012
(a) Consultancy services 44721.22 34792.02
(b) FOB value of exports of equipment and licenses 130.02 144.46
(c) Interest income 10.46 29.60
(d) Dividend income 1049.05 2374.60
(e) Other income (net) 31.81 4.38

42) EXPENDITURE IN FOREIGN CURRENCY

(Rs crores)
2013 2012
(a) Royalty 2.08 2.53
(b) Legal and professional fees 148.25 114.27
(c) Interest 3.90 0.76
(d) Overseas employee costs 2987.17 2054.64
(e) Overseas business expenses 7091.22 5533.53
(f) Services rendered by business associates and others 3148.52 2188.97
(g) Software, hardware and material cost 563.96 501.77
(h) Communication expenses 185.55 182.03
(i) Travelling and conveyance expenses 147.30 125.01
(j) Other operating expenses 827.75 553.18
(k) Foreign taxes 496.48 773.81

43) VALUE OF IMPORTS CALCULATED ON CIF BASIS

(Rs crores)
2013 2012
Raw materials, sub-assemblies and components 20.35 8.19
Capital goods 352.42 227.49
Stores and spare parts 0.01 0.01

44) VALUE OF IMPORTED AND INDIGENOUS RAW MATERIALS, SUB-ASSEMBLIES AND COMPONENTS, STORES AND SPARE PARTS CONSUMED

2013

2012

(Rs crores)

% (Rs crores) %
Raw materials, sub-assemblies and components
Imported: 18.62 74.42 9.24 78.44
Indigenous: 6.40 25.58 2.54 21.56
25.02 100.00 11.78 100.00
Stores and spare parts
Imported: 0.01 50.00 0.01 33.96
Indigenous: 0.01 50.00 0.02 66.04
0.02 100.00 0.03 100.00

Consumption figures shown above are after adjusting excess and shortages ascertained on physical count, unserviceable items, etc.

45) REMITTANCE IN FOREIGN CURRENCIES FOR DIVIDENDS

The Company has remitted Rs Nil (March 31, 2012: Rs Nil ) in foreign currencies on account of dividends during the year and does not have information as to the extent to which remittance, if any, in foreign currencies on account of dividends have been made by / on behalf of non-resident shareholders. The particulars of dividends declared and paid to non-resident shareholders for the year ended March31,2012and interim dividends for the year ended March 31, 2013, are as under:

Number of non-resident shareholders Number of equity shares held

Gross amount of dividend

(Rs crores)

2013 2012
Final dividend for 2010-11 declared in June 2011 10171 25,24,86,198 - 201.99
Interim dividend declared in July 2011 10276 25,21,66,593 - 75.65
Interim dividend declared in October 2011 10750 25,82,70,198 - 77.48
Interim dividend declared in January 2012 10722 26,50,25,825 - 79.51
Final and special dividend for 2011-12 declared in June 2012 10437 28,81,44,188 461.03 -
Interim dividend declared in July 2012 10459 29,09,13,339 87.27 -
Interim dividend declared in October 2012 10270 29,44,78,942 88.34 -
Interim dividend declared in January 2013 10382 29,42,30,815 88.27 -

46) DISCLOSURE UNDER CLAUSE 32 OF THE LISTING AGREEMENT

Amount of loans and advances in nature of loans outstanding from subsidiaries as at March 31, 2013:

(Rs crores)
Subsidiary Company Outstanding as at March 31, 2013 Maximum amount outstanding during the year
TCS FNS Pty Limited * 52.91 255.11

246.20

251.74

TCS Iberoamerica SA **

-

52.58

47.88

375.25
Tata Consultancy Services Morocco SARL AU 6.32 6.51

5.93

6.20

 

No. of Shares
* TCS FNS Pty Limited has made the following investments in its subsidiaries:
(a) TCS Financial Solutions Australia Holdings Pty Limited 65,58,424
(b) TCS Management Pty Ltd. 4,91,712
** TCS Iberoamerica SA has made the following investments in its subsidiaries:
(a) TCS Solution Centre S.A. 15,50,00,000
(b) Tata Consultancy Services Argentina S.A. 4,21,27,767
(c) Tata Consultancy Services Do Brasil Ltda 8,67,31,803
(d) Tata Consultancy Services De Mexico S.A., De C.V. 2,613,906
(e) TCS Inversiones Chile Limitada -
(f) Tata Consultancy Services Chile S.A. 1
(g) TCS Uruguay S.A. 5,40,000

Previous year figures are in italics.

47) Research and development expenditure aggregating Rs 151.36 crores (Previous year: Rs 128.98 crores), including capital expenditure, was incurred during the year.

48) The Board of Directors at their meeting held on October 19, 2012 have accorded consent for the merger of TCS e-Serve Limited together with the de merger of TCS e-Serve International Limited's SEZ undertaking with the Company. The appointed date for the above scheme proposed is April 1, 2013 respectively.

49) On February 22, 2013, the Company entered into an agreement to settle for a sum of Rs 161.63 crores, a class action suit filed in a United States of America Court relating to payments to employees on deputation. The Court has granted preliminary approval to the settlement agreement. The amount of settlement has been included in 'Other expenses', vide note no. 26.

50) Previous year figures have been recast / restated.

   
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