in a Dynamic Environment - Domain-b

Annual Report 2008-0915) Auditors' remuneration2009 2008148(Rs. in crores)(Rs. in crores)For services as Auditors, including quarterly audits 1.60 1.60For Tax Audit 0.25 0.25For Other services 1.74 0.57Reimbursement of out-of-pocket expenses 0.03 0.05For service tax * 0.41 0.30The remuneration disclosed above excludes fees of Rs. 1.14 crores (Previous year: Rs. 2.84 crores) for attest and otherprofessional services rendered by a firm of accountants in which some partners of the firm of statutory auditors arepartners.* Service tax credit has been / will be availed.16) Current tax is net of the write-back of provisions (net) and refunds received of Rs. 103.11 crores for the year endedMarch 31, 2009 (March 31, 2008: Rs. 37.52 crores) in domestic and certain overseas jurisdictions relating to earlier years.17) Contingent LiabilitiesAs atAs atMarch 31, 2009 March 31, 2008(Rs. in crores)(Rs. in crores)Claims against the Company not acknowledgedas debt (See note (i) below) 43.82 99.35Income Tax demands 269.04 5.63Indirect Tax demands 35.56 25.87Guarantees given by the Company on behalf of subsidiaries(See note (iii) below) 1938.84 2091.86i) The Company is contesting claims made by lessors for properties leased under tenancy agreements in the courts.In respect of these claims, a provision has been held for Rs. 67.58 crores (March 31, 2008: Rs. 11.83 crores) andRs. 32.90 crores (March 31, 2008: Rs. 81.54 crores) have been included above under the head “Claims againstthe Company not acknowledged as debt”.ii) As stated in note 2(f) above, on December 31, 2008, the Company acquired 96.26 percent stake inTCS e-Serve Limited (formerly known as Citigroup Global Services Limited (CGSL)), a business process outsourcingservices provider in the Banking and Financial Services sector. TCS e-Serve Limited has a contingent liability ofRs. 220.72 crores as at March 31, 2009, in respect of Income Tax matters in dispute. TCS e-Serve Limited has alsopaid advance taxes aggregating Rs. 162.27 crores against the disputed amounts for the relevant assessmentyears. The Company is entitled to an indemnification of the above referred contingent claims on TCS e-ServeLimited from the seller and would be required to pay amounts equal to amounts refunded to TCS e-ServeLimited on those claims as an adjustment to the purchase price consideration.iii) The Company has provided guarantees aggregating to Rs. 1833.80 crores (GBP 252.50 million) (March 31, 2008:Rs. 2006.93 crores) (GBP 252.50 million) to third parties on behalf of its subsidiary Diligenta Limited.18) Commitmentsi) Estimated amount of contracts remaining to be executed on capital account and not provided for (net ofadvances) Rs. 637.87 crores (March 31, 2008: Rs. 503.40 crores).ii) Pearl Group Services Limited (“Pearl”) has an equity holding of 24 percent in Diligenta Limited. Under theshareholders agreement dated March 23, 2006, the Company has a call option to purchase all the shares heldby Pearl at fixed price of Rs. 219.62 crores (GBP 30.24 million) at the end of fourth year and Pearl has a putoption to sell the shares to the Company at the same price at the end of the fifth year.iii) The Company has undertaken to provide continued financial support to its subsidiary APOnline Limited,MP Online Limited, Tata Consultancy Services Asia Pacific Pte Limited, TCS FNS Pty Ltd. and Tata ConsultancyServices Morocco SARL AU.