in a Dynamic Environment - Tata Consultancy Services

Net loss on derivative instruments of Rs. 470.72 crores recognised in Hedging Reserve as of March 31, 2009, is
expected to be reclassified to the profit and loss account by March 31, 2010.
The movement in Hedging Reserve during the year ended March 31, 2009, for derivatives designated as Cash Flow
Hedges is as follows:
Year ended Year ended
March 31, 2009 March 31, 2008
(Rs. in crores) (Rs. in crores)
Balance at the beginning of the year
Gains/(losses) transferred to income statement on
(15.15) 73.71
occurrence of forecasted hedge transaction
Changes in the fair value of effective portion of
21.83 (64.91)
outstanding cash flow derivatives
Net derivative (losses) / gain related to a
(638.81) (174.78)
discontinued cash flow hedge (97.81) 150.83
Balance at the end of the year (729.94) (15.15)
In addition to the above cash flow hedges, the Group has outstanding foreign exchange forward contracts and
currency option contracts aggregating Rs. 4222.69 crores (March 31, 2008: Rs. 2167.95 crores) whose fair value
showed a gain of Rs. 7.70 crores as on March 31, 2009 (March 31, 2008: loss of Rs. 4.46 crores). Although these
contracts are effective as hedges from an economic perspective, they do not qualify for hedge accounting and
accordingly these are accounted as derivatives instruments at fair value with changes in fair value recorded in the
profit and loss account. Exchange loss of Rs. 406.68 crores (March 31, 2008: exchange gain of Rs. 283.96 crores) on
foreign exchange forward and currency option contracts for year ended March 31, 2009, have been recognised in
the profit and loss account.
20) Earning per share
Year ended Year ended
March 31, 2009 March 31,2008
(Rs. in crores) (Rs. in crores)
Net profit for the year 5256.42 5026.02
Less: Preference share dividend (including dividend tax) 8.19 0.08
Amount available for Equity shareholder 5248.23 5025.94
Weighted Average No. of Shares 97,86,10,498 97,86,10,498
Earning per share basic and diluted (Rs.) 53.63 51.36
Face value per Equity share (Rs.) 1 1
21) Subsequent event
The Board of directors have recommended the issue of bonus shares in the proportion of one new equity share for every
existing equity share by utilization of Securities Premium Account, subject to the approval of the shareholders.
22) Figures pertaining to the subsidiary companies have been reclassified wherever necessary to bring them in line with the
Group financial statements.
23) Previous year's figures have been recast / restated wherever necessary.
24) Previous year's figures are in italics.
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