in a Dynamic Environment - Domain-b

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Annual Report 2008-09TCS LIMITED (CONSOLIDATED)The Management Discussion and Analysis below relates to the consolidated audited financial statements ofTCS Limited and includes the results of its subsidiaries. The discussion should be read in conjunction with the financialstatements and the related ‘Notes to the Consolidated Accounts’ of TCS Limited for the year ended March 31, 2009.1. RESULTS OF OPERATIONS - TCS LIMITED (CONSOLIDATED)The table below gives an overview of the financial results of TCS Limited (consolidated):Amount in Rs. croreParticularsFor the year ended For the year ended31st March, 2009 31st March, 2008 % Increase /Revenue from operations Rs. crore % of Rs. crore % of(decrease)revenuesrevenuesInformation technology and consultancyservices 26,781.86 96.29 21,437.43 94.77 24.93Sale of equipment and software licenses 1,031.02 3.71 1,182.09 5.23 (12.78)Total revenues 27,812.88 100.00 22,619.52 100.00 22.96Expenditure:Employee costs 9,901.58 35.60 7,800.58 34.49 26.93Overseas business expenses (employeeallowances paid overseas) 4,572.28 16.44 3,610.47 15.96 26.64Total employee costs 14,473.86 52.04 11,411.05 50.45 26.84Overseas business expenses (other thanemployee allowances paid overseas) 460.07 1.65 438.41 1.94 4.94Services rendered by business associatesand others 1,108.71 3.99 850.49 3.76 30.36Other operating expenses 4,600.44 16.54 4,208.19 18.60 9.32Total expenditure 20,643.08 74.22 16,908.14 74.75 22.09Other income (net) (426.99) (1.54) 728.29 3.22 (158.63)Profit before Interest, depreciationand taxes 6,742.81 24.24 6,439.67 28.47 4.71Interest 28.66 0.10 30.01 0.13 (4.50)Depreciation 564.08 2.03 563.71 2.49 0.07Profit before taxes 6,150.07 22.11 5,845.95 25.84 5.20Provision for taxes:Income tax expense (including deferredtax benefit and MAT credit entitlement) 812.51 2.92 760.11 3.36 6.89Fringe benefit tax 26.44 0.10 26.20 0.12 0.92Net profit for the year before minorityinterest and share of profit of associate 5,311.12 19.10 5,059.64 22.37 4.97Minority interest (54.00) (0.19) (34.42) (0.15) 56.89Share of (loss)/profit of associate (0.70) - 0.80 - (187.50)Net profit for the year 5,256.42 18.90 5,026.02 22.22 4.5874
RevenuesRevenues from operationsThe Company’s total consolidated revenues increased infiscal 2009 to Rs.27,812.88 crore from Rs.22,619.52 crorein fiscal 2008, a growth of 22.96%. Information technologyand consultancy services revenues which was 96.29% ofrevenues in fiscal 2009 (94.77% in fiscal 2008) increasedby 24.93 % to Rs.26,781.86 crore in fiscal 2009 fromRs.21,437.43 crore in fiscal 2008.Consolidated revenues from sale of equipmentand software licenses decreased by 12.78 % toRs.1,031.02 crore in fiscal 2009 from Rs.1,182.09 crore infiscal 2008.Analysis of revenue growthThe increase in revenues is mainly attributable to thegrowth in the volume of business (17.74%), impact ofexchange rates (10.80%) and acquisition ofTCS e-Serve Limited (1.59%). This was offset by reductionin billing rates (4.89%) and shift of on-site business tooffshore (2.27%). Shift of revenues from on-site to offshorewas a strategic decision.Revenue by segmentsThe classification of revenues by geography and industrypractice is more relevant when viewed on a consolidatedbasis.Revenue by geography% of revenuesGeography 2008-09 2007-08Americas 51.38 50.35UK 18.99 19.91Europe 10.53 9.28India 7.85 9.04AsiaPacific 4.75 5.27IberoAmericas 4.71 4.45Middle East and Africa 1.79 1.70Total 100.00 100.00The Company has been focusing on diversifying the sourceof its revenues from multiple geographies across theglobe.Revenues by industry practice% of revenuesMajor industry practice 2008-09 2007-08Banking, Financial Services andInsurance (BFSI) 43.32 44.61Manufacturing 10.08 9.93Retail and Distribution 8.91 6.52Telecom 16.30 16.32Others 21.39 22.62Total 100.00 100.00Revenues from the BFSI segment have increased byRs.1,955.94 crore in fiscal 2009. Major industry practiceverticals have grown well. Hi-Tech, Life Sciences andHealthcare, Energy Utilities and Transportation includedin ‘others’ in the above chart also witnessed good growth.Revenue by significant servicesService lines 2008-09 2007-08% of % ofrevenues revenuesIT solutions and servicesApplication developmentand maintenance 48.46 48.34Business intelligence 8.13 9.66Enterprise solutions 12.60 13.10Assurance services 4.26 3.83Subtotal-IT solutions andservices 73.45 74.93Engineering and industrialservices 6.01 5.35Infrastructure services 8.04 6.54Global consulting 2.68 3.36Asset leverage solutions 2.93 3.59Business process outsourcing 6.89 6.23Total revenues 100.0 100.0The Company’s newer service offerings such asInfrastructure services, Assurance services and BusinessProcess Outsourcing have been showing significantgrowth. Engineering and Industrial Services (EIS) businessis also growing.The Company generated 44.79% of its revenues in fiscal2009 from fixed price, fixed time contracts (44.06% infiscal 2008).The distribution of Company’s revenues from on-site/off-shore in fiscal 2009 are as follows: off-shore services 44.22% (41.92% in fiscal 2008)75
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Annual Report 2008 - 09agilityina D
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ContentsBoard of Directors 2Our Lea
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Laura M ChaIndependentDirectorDr. R
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N ChandrasekaranChief Operating Off
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Your Company remained focused on he
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"TCS is a valued customer, supplier
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“Nielsen is moving quickly to tra
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Board of DirectorsR N Tata (Chairma
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Management TeamFunctionNameIndustry
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3. DividendBased on the Company's p
Page 25 and 26: The Company has also been rated by
Page 27 and 28: 11. Corporate SustainabilityIn keep
Page 29 and 30: 13. Corporate Governance Report and
Page 31 and 32: Annexure to the Directors’ Report
Page 33 and 34: Expenditure on R&D(Rs. in crore)Yea
Page 35 and 36: Sr. Name Age Designation Gross Net
Page 49 and 50: DECLARATION REGARDING COMPLIANCE BY
Page 51 and 52: Chart 3: IT Services spends by indu
Page 53 and 54: B. FOCUS AREAS OF THE COMPANY1. Vis
Page 55 and 56: 2.6 Organisation: From April 2008,
Page 57 and 58: Company also offers PerformanceMana
Page 59 and 60: 4. R&D and Innovation Labs: TCS est
Page 61 and 62: Chart 24: Diversity: Global work fo
Page 63 and 64: The Company’s ability to bid for
Page 65 and 66: Corporate Governance practices and
Page 67 and 68: TCS LIMITED (UNCONSOLIDATED)RESULTS
Page 69 and 70: eduction in cost of software licens
Page 71 and 72: FINANCIAL POSITION - TCS LIMITED(UN
Page 73 and 74: Deferred tax assets (net)Details of
Page 75: Cash flow from investing activities
Page 79 and 80: The primary reasons for the decreas
Page 81 and 82: obligations under finance lease was
Page 83 and 84: Rs.137.03 crore as at March 31, 200
Page 85 and 86: COMPANY'S CONSOLIDATED PERFORMANCE
Page 87 and 88: INTERNAL CONTROL SYSTEMS AND THEIR
Page 89 and 90: Name of Category Number of Board Wh
Page 91 and 92: (v)The composition of the Audit Com
Page 93 and 94: (ix)Group Health Insurance as separ
Page 95 and 96: Capital and revenue budgets and cap
Page 97 and 98: (vi)Market Price Data:High, Low (ba
Page 99 and 100: (xi) Shareholding as on March 31, 2
Page 101 and 102: COMPLIANCE CERTIFICATETO THE MEMBER
Page 103 and 104: ANNEXURE TO THE AUDITORS' REPORT(Re
Page 105 and 106: trading in shares, securities, debe
Page 107 and 108: INCOMEProfit and Loss Account for t
Page 109 and 110: Schedules forming part of the Balan
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Schedules forming part of the Balan
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Schedules forming part of the Profi
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SCHEDULE ‘Q’ - NOTES TO ACCOUNT
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services are rendered. Revenue from
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3) The Company has given undertakin
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The estimate of future salary incre
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Particulars Geographic Segment (Rs.
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ii) TCS Financial Solutions Austral
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(Rs. in crores)Particulars Holding
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(Rs. in crores)2009 2008Remuneratio
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19) Micro and Small Enterprises(Rs.
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Number of Number of Gross AmountNon
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No. of Shares* Tata Consultancy Ser
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AUDITORS’ REPORT ON CONSOLIDATED
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Consolidated Profit and Loss Accoun
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Schedules forming part of the Conso
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SCHEDULE ‘D’UNSECURED LOANSSche
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e) DepreciationDepreciation other t
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Dividends are recorded when the rig
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Name of the Company Country of Perc
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3) Acquisitions / Divestmenta) On M
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Funded retirement benefits Indian F
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7) Unbilled revenue as at March 31,
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Particulars Geographic Segment (Rs.
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B) Transactions with related partie
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2009 2008(Rs. in crores)(Rs. in cro
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Net loss on derivative instruments
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Rs. in croresSr. Name of the Subsid
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Awards and RecognitionsWall Street
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