in a Dynamic Environment - Tata Consultancy Services
in a Dynamic Environment - Tata Consultancy Services
in a Dynamic Environment - Tata Consultancy Services
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13. Corporate Governance Report and Management Discussion and Analysis Statement<br />
A report on Corporate Governance is attached to this Report as also a Management Discussion and Analysis<br />
statement.<br />
14. Directors' Responsibility Statement<br />
Pursuant to the requirement of Section 217(2AA) of the Companies Act, 1956 ("Act"), and based on the<br />
representations received from the operat<strong>in</strong>g management, the Directors hereby confirm that:<br />
(i) <strong>in</strong> the preparation of the Annual Accounts for the year 2008-09, the applicable Account<strong>in</strong>g Standards<br />
have been followed and there are no material departures;<br />
(ii) they have selected such account<strong>in</strong>g policies <strong>in</strong> consultation with the statutory auditors and applied them<br />
consistently and made judgments and estimates that are reasonable and prudent so as to give a true and<br />
fair view of the state of affairs of the Company at the end of the f<strong>in</strong>ancial year and of the profit of the<br />
Company for the f<strong>in</strong>ancial year;<br />
(iii) they have taken proper and sufficient care to the best of their knowledge and ability for the ma<strong>in</strong>tenance<br />
of adequate account<strong>in</strong>g records <strong>in</strong> accordance with the provisions of the Companies Act, 1956. They confirm<br />
that there are adequate systems and controls for safeguard<strong>in</strong>g the assets of the Company and for<br />
prevent<strong>in</strong>g and detect<strong>in</strong>g fraud and other irregularities;<br />
(iv) they have prepared the Annual Accounts on a go<strong>in</strong>g concern basis.<br />
15. Subsidiary Companies and Consolidated F<strong>in</strong>ancial Statements<br />
The Company had 52 subsidiaries at the beg<strong>in</strong>n<strong>in</strong>g of the year.<br />
The follow<strong>in</strong>g five subsidiaries were set up/acquired dur<strong>in</strong>g the year:<br />
� <strong>Tata</strong> <strong>Consultancy</strong> <strong>Services</strong> (Thailand) Ltd. (set up by <strong>Tata</strong> <strong>Consultancy</strong> <strong>Services</strong> Asia Pacific Pte Ltd.)<br />
� <strong>Tata</strong> <strong>Consultancy</strong> <strong>Services</strong> (Philipp<strong>in</strong>es) Inc. (set up by <strong>Tata</strong> <strong>Consultancy</strong> <strong>Services</strong> Asia Pacific Pte Ltd.)<br />
� TCS e-Serve Limited (acquired)<br />
� TCS e-Serve International Limited (acquired)<br />
� TCS e-Serve America, Inc. (set up by TCS e-Serve International Limited)<br />
Dur<strong>in</strong>g the current year, <strong>Tata</strong> Infotech Deutschland GmbH, a subsidiary, has merged with another subsidiary<br />
<strong>Tata</strong> <strong>Consultancy</strong> <strong>Services</strong> Deutschland GmbH and another subsidiary viz. F<strong>in</strong>ancial Network <strong>Services</strong> (Europe) Plc<br />
has been liquidated.<br />
In view of the above, the total number of subsidiaries as on March 31, 2009 is 55.<br />
TCS F<strong>in</strong>ancial Management LLC, a subsidiary of the Company's wholly-owned subsidiary <strong>Tata</strong> America<br />
International Corporation has been dissolved dur<strong>in</strong>g April 2009.<br />
There has been no material change <strong>in</strong> the nature of the bus<strong>in</strong>ess of the subsidiaries. A statement conta<strong>in</strong><strong>in</strong>g<br />
brief f<strong>in</strong>ancial details of the subsidiaries is <strong>in</strong>cluded <strong>in</strong> the Annual Report.<br />
As required under the List<strong>in</strong>g Agreements with the Stock Exchanges, a Consolidated F<strong>in</strong>ancial Statement of the<br />
Company and all its subsidiaries is attached. The Consolidated F<strong>in</strong>ancial Statement has been prepared <strong>in</strong><br />
accordance with Account<strong>in</strong>g Standards 21, 23 and 27 issued by The Institute of Chartered Accountants of India<br />
and show the f<strong>in</strong>ancial resources, assets, liabilities, <strong>in</strong>come, profits and other details of the Company, its<br />
associate companies, its jo<strong>in</strong>t ventures and its subsidiaries after elim<strong>in</strong>ation of m<strong>in</strong>ority <strong>in</strong>terest, as a s<strong>in</strong>gle<br />
entity.<br />
The Company has been granted exemption for the year ended March 31, 2009 by the M<strong>in</strong>istry of Corporate<br />
Affairs from attach<strong>in</strong>g to its Balance Sheet, the <strong>in</strong>dividual Annual Reports of its subsidiary companies. As per the<br />
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