in a Dynamic Environment - Domain-b

Annual Report 2008-09InvestmentsSummary of the investments:Amount in Rs. croreAs at As atMarch March31, 2009 31, 2008Investments in fully paid-upequity shares of associatesand others (unquoted) 8.68 5.61Investments in fully paid-uppreference shares of associatesand others (unquoted) 9.31 9.28Investments in bonds anddebentures (quoted) 11.99 43.14Investments in bonds anddebentures (unquoted) - 0.10Investments in mutual funds(unquoted) 1,584.43 2,548.03Total investments 1,614.41 2,606.16Investments in mutual funds aggregated Rs.1,584.43 croreas at March 31, 2009 (Rs.2,548.03 crore as atMarch 31, 2008). During fiscal 2009 the Company hasreduced its investments in mutual funds byRs.963.60 crore and increased its balances in depositaccounts with banks in India by Rs.1,214.80 crore.Trade investments/mergers/liquidations during fiscal2009 through subsidiariesName of subsidiariesDetailsDeferred tax assets (net)Details of deferred tax assets (net) have been explainedunder the heading ‘Deferred tax liabilities (net)’.InventoriesThe Company had inventories of Rs.36.60 crore as at March31, 2009 (Rs.42.43 crore as at March 31, 2008). Theinventory constitutes raw materials, components, subassembliesand finished goods. The reduction is on accountof lower stock of finished goods.Current assets, loans and advancesUnbilled revenuesUnbilled revenues were Rs.1,481.38 crore as atMarch 31, 2009 (Rs.1,352.50 crore as at March 31, 2008)representing 5.33% of the revenues for fiscal 2009(5.98% as at March 31, 2008). The significant items are: addition of Rs 80.89 crore arising out of acquisitionof TCS e-Serve Limited (formerly known as CitigroupGlobal Services Limited) increase in unbilled revenues of subsidiaries.Sundry debtorsSundry debtors as at March 31, 2009 aggregatedRs.6,022.82 crore (Rs.5,378.07 crore as at March 31, 2008).As a percentage of revenues, sundry debtors were at21.66% as at March 31, 2009 as compared to 23.78% asat March 31, 2008.The cumulative provision towards bad and doubtful debtsas at March 31, 2009 stood at Rs.169.22 crore(Rs.106.26 crore as at March 31, 2008). The increase inprovisions for bad and doubtful debts is mainly attributedto additional provisions required to be made in respect ofa few overseas clients facing economic difficulties andsome domestic clients whose dues fell beyond stipulatedperiod.Debtors in terms of DSO, as at March 31, 2009 was79 days (87 days as at March 31, 2008). The Company’sincreased focus on collection of outstanding dues hasresulted in a reduction of DSO during fiscal 2009. TheCompany continues to monitor closely thecreditworthiness of its clients and is working closely withthem to ensure that the dues are collected in time.Cash and bank balancesThe Company had cash and bank balances ofRs.2,698.14 crore as at March 31, 2009 (Rs.1,223.40 croreas at March 31, 2008). Of this balance, Rs.1,202.07 crorewas held in foreign bank accounts as at March 31, 2009(Rs.983.51 crore as at March 31, 2008). The balance heldin fixed deposits with banks in India increased from80