in a Dynamic Environment - Tata Consultancy Services

obligations under finance lease was Rs.36.44 crore as at
March 31, 2009 (Rs.8.80 crore as at March 31, 2008) and
these are also secured against fixed assets obtained under
finance lease arrangements.
Unsecured loans as at March 31, 2009 were
Rs.525.32 crore (Rs.436.95 crore as at March 31, 2008).
Loans from banks as at March 31, 2009 were at
Rs.512.37 crore (Rs.422.29 crore as at March 31, 2008).
These were commercial borrowings taken by the Company
and by its North American subsidiary. Loans repayable
within one year are Rs.513.63 crore as at March 31, 2009
(Rs.22.44 crore as at March 31, 2008). Other unsecured
loans were Rs.12.95 crore as at March 31, 2009 (Rs.14.66
crore as at March 31, 2008).
Deferred tax liability (net)
As stated in the accounting policies (see notes to accounts,
schedule Q1 (l)), deferred tax assets and liabilities are
offset , tax jurisdiction wise. Schedule ‘E’ brings out details
of component-wise deferred tax balances where the net
values result into liabilities or assets, jurisdiction wise. A
combined view of all deferred tax assets and liabilities,
across all tax jurisdictions is summarized below.
Amount in Rs. crore
Liabilities Assets
March March March March Increase/
31, 31, 31, 31, (decrease)
2009 2008 2009 2008
Foreign branch
profit tax (net
liability)
Foreign branch
profit tax (net
(108.86) (104.70) (4.16)
asset)
Depreciation
0.53 3.08 (2.55)
(net liability)
Depreciation
(68.33) (7.90) (60.43)
(net asset)
Employee
benefit
7.89 (7.89)
(net asset)
Provision for
doubtful debts
56.04 47.66 8.38
(net asset)
Others
32.07 17.73 14.34
(net liability)
Others
(8.66) (23.45) 14.79
(net asset)
Total asset /
28.70 26.66 2.04
(liability) (185.85) (136.05) 117.34 103.02 (35.48)
Fixed assets
Additions to the gross block excluding CWIP in fiscal 2009
amounted to Rs.1,659.63 crore (Rs.1,157.15 crore in fiscal
2008). The significant items of additions in fiscal 2009
were:
� land and buildings of Rs.448.23 crore in fiscal 2009
(Rs.398.62 crore in fiscal 2008)
� leasehold improvements of Rs.192.24 crore in fiscal
2009 (Rs.89.19 crore in fiscal 2008)
� computers of Rs.543.54 crore in fiscal 2009
(Rs.338.50 crore in fiscal 2008)
� office equipment, electrical installations and
furniture and fixtures of Rs.442.39 crore in fiscal
2009 (Rs.327.11 crore in fiscal 2008).
The amount in CWIP was Rs.705.49 crore as at
March 31, 2009 (Rs.906.87crore as at March 31, 2008)
mostly related to construction/improvement of facilities
which are likely to be ready for use in fiscal 2010 and
beyond. This CWIP included capital advances of
Rs.181.57 crore as at March 31, 2009 (Rs.243.81 crore as
at March 31, 2008).
The Company made contractual commitments to vendors
who are executing various infrastructure projects. The
estimated amount of such contracts remaining to be
executed on capital account was Rs.664.59 crore as at
March 31, 2009 (Rs.515.88 crore as at March 31, 2008).
Goodwill on consolidation
Goodwill on consolidation as at March 31, 2009 was
Rs.3,261.40 crore (Rs.1,264.95 crore as at March 31, 2008).
The Company acquired 96.26 % of equity interest in
TCS e-Serve Limited (formerly known as Citigroup Global
Services Limited). On consolidation with TCS e-Serve
Limited, a goodwill of Rs.1,952.18 crore has been
recognized in fiscal 2009. Details of goodwill on
consolidation as at March 31, 2009 and March 31, 2008
are shown below:
Amount in Rs. crore
As at As at Increase /
March March (decrease)
31, 2009 31, 2008
CMC Limited
Tata America
International
296.16 296.16 -
Corporation
Tata Consultancy
Services
161.30 170.36 (9.06)
Netherlands BV 336.03 314.94 21.09
TCS Sverige AB
TCS Iberoamerica
25.35 27.17 (1.82)
SA 305.55 264.88 40.67
APOnline Limited 0.25 0.25 -
TCS FNS Pty Limited 138.09 144.70 (6.61)
Diligenta Limited 46.49 46.49 -
TCS e-Serve Limited 1,952.18 - 1,952.18
Total 3,261.40 1,264.95 1,996.45
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