in a Dynamic Environment - Domain-b

Annual Report 2008-09The details of the increase in minority interest are shownin the table below.Amount in Rs. croreAs at As at Increase /March March (decrease)31, 2009 31, 2008CMC Limited 55.01 42.93 12.08Tata ConsultancyServices (China)Co., Ltd. 3.16 (1.23) 4.39Diligenta Limited (9.57) (8.18) (1.39)TCS e-Serve Limited 3.20 - 3.20C-Edge TechnologiesLimited 0.08 0.14 (0.06)MP Online Limited - (0.07) 0.07Tata ConsultancyServices (Africa)(PTY) Ltd. 2.12 0.83 1.29Total 54.00 34.42 19.58Share of profit of associatesInvestments in companies in which TCS Limited or any ofits subsidiaries has significant influence by virtue ofownership of 20% to 50% in the equity capital of the saidcompanies are defined as ‘investments in associates’.In its consolidated books of accounts the Companyrecognises its share of income or loss in the investeecompanies on the principles of equity method ofaccounting.The Company’s share of profit/loss of associates as a resultof such minority shareholding was a loss ofRs.0.70 crore in fiscal 2009 as compared to a profit ofRs.0.80 crore in fiscal 2008.Net profitThe Company’s consolidated net profit wasRs.5,256.42 crore in fiscal 2009 (18.90% of revenues)against Rs.5,026.02 crore (22.22% of revenues) in fiscal2008.2. FINANCIAL POSITION - TCS LIMITED(CONSOLIDATED)Share capitalAmount in Rs. croreAs at As atMarch March31, 2009 31, 2008Authorised share capital 220.00 220.00Issued, subscribed and paid-up 197.86 197.86share capitalComposition of share capital has been explained underthe heading of ‘Share capital’ in MD & A for TCS Limited(unconsolidated).Reserves and surplusSecurities premium account stood at Rs.2,016.33 croreas at March 31, 2009. (Rs.2,016.33 crore as at March 31,2008).The opening balance of general reserve as atMarch 31, 2008 was Rs.1,406.81 crore. In fiscal 2009Rs.496.56 crore was transferred to the general reservefrom the profit and loss account. The closing balance ason March 31, 2009 was Rs.1,903.37 crore.Balance in the profit and loss account as atMarch 31, 2009 was at Rs.11,835.03 crore (Rs.8,688.21crore as at March 31, 2008).Foreign currency translation reserve was Rs.471.94 croreas at March 31, 2009 (Rs.0.64 crore as at March 31, 2008).The increase is primarily on account of translation offinancials of overseas subsidiaries into the reportingcurrency of the holding company. The major subsidiariescontributing to this increase are Tata AmericaInternational Corporation (Rs.234.14 crore),Tata Consultancy Services Netherlands BV(Rs.86.74 crore), TCS Iberoamerica SA (Rs.31.34 crore)and Tata Consultancy Services Asia Pacific Pte Ltd.(Rs.48.05 crore).Loss on cash flow hedges was Rs.729.94 crore as atMarch 31, 2009 (loss of Rs.15.15 crore as atMarch 31, 2008). This loss represents effect ofmark-to-market valuation of cash flow hedges taken forprojected revenues. Of this loss in the hedging reserveaccount, Rs.470.72 crore relates to the immediate nextfiscal period.Reserves and surplus at the end of fiscal 2009 wasRs.15,502.15 crore, an increase of 28.09% overRs.12,102.26 crore at the end of fiscal 2008.LoansSecured loans as at March 31, 2009 were Rs.37.89 crore(Rs.18.07 crore as at March 31, 2008).Bank overdrafts as at March 31, 2009 aggregatedRs.1.45 crore (Rs.9.27 crore as at March 31, 2008) and aresecured against domestic book debts, hypothecation ofinventories and other current assets. The Company’s78