in a Dynamic Environment - Tata Consultancy Services

3. Dividend
Based on the Company's performance, the Directors are pleased to recommend for approval of the Members
a Final Dividend of Rs.5/- per share on 97,86,10,498 Equity Shares of Re.1/- each of the Company for the
financial year 2008-09. The Final Dividend on the Equity Shares, if declared as above, would involve an outflow
of Rs.489.31 crore towards dividend and Rs.83.18 crore towards dividend tax, resulting in a total outflow of
Rs.572.49 crore. The total outflow on dividend on Equity Shares of the Company for the year 2008-09 would
translate to 34.13% of the profits of the Company. A table on the dividends paid by the Company on Equity
Shares during the year and during the previous year is given below:
2008-09 2007-08
(Rs. in Crore)
Number of Dividend Dividend Dividend Total Number of Dividend Total
shares per share Amount Tax Outflow shares per share Outflow
(Rs.) (Rs.) (including
Dividend
Tax)
First Interim
Dividend
97,86,10,498 3.00 293.58 49.89 343.47 97,86,10,498 3.00 343.47
Second Interim
Dividend
- do - 3.00 293.58 49.89 343.47 -do- 3.00 343.47
Third Interim
Dividend
- do - 3.00 293.58 49.89 343.47 -do- 3.00 343.47
Sub-total - - 880.74 149.67 1030.41 - - 1030.41
Final Dividend 97,86,10,498 5.00 489.31 83.18 572.49 97,86,10,498 5.00 572.49
Total - 14.00 1370.05 232.85 1602.90 - - 1602.90
The Redeemable Preference Shares which have been allotted on March 28, 2008 are entitled to a fixed
cumulative dividend of 1% per annum and a variable non-cumulative dividend of 1% of the difference between
the rate of dividend declared during the year on the Equity Shares of the Company and the average rate of
dividend declared on the Equity Shares of the Company for the three years preceding the year of issue of the
said Redeemable Preference Shares. Accordingly, the Directors have recommended, for approval of the
Members, a Dividend of Seven (7) paise per share on 100,00,00,000 Redeemable Preference Shares of Re.1/each
for the financial year 2008-09.
4. Transfer to Reserves
The Company proposes to transfer Rs.469.62 crore to the General Reserve out of the amount available for
appropriations and an amount of Rs.9990.41 crore is proposed to be retained in the Profit and Loss Account.
5. Operating Results and Business
The Company continued to see profitable growth in the financial year 2008-09 across all markets in existing
and new areas of business.
For the year ended March 31, 2009, the Company earned a total income of Rs.21947.76 crore, an increase of
15.64% over previous year's Rs.18979.67 crore. As per the Consolidated Accounts the total income was
Rs.27385.89 crore, an increase of 17.30% over the previous year's Rs.23347.81 crore.
The net profit of the Company for the year increased to Rs.4696.21 crore (21.40% of the total income) as
compared to Rs.4508.76 crore (23.76% of total income) in the previous year. As per the Consolidated Accounts
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