tata consultancy services final report of 2020

1. Tata consultancy services ltd.
Submitted by
Name Registration No. Roll Number
KASTURI NAGARAJA 11809128 04
Submitted to
RIYA MAM .
In partial fulfilment of the requirements of award of 2st Continuous
Assignment
“BACHELOR OF COMMERCE (Hons.)”
Mittal School Of Business

2. ABOUT TCS:-
1. Tata consultancy services [TCS], a part of the Tata group provides
information and technology and management consultation
services to the organizations in more than 53 countries
2. The company was founded in the year 1968 and it’s based in
Mumbai.
3. It has over 89,000 trained IT consultants in 47 countries.
4. The company offers e-business, application development and
maintenance, architecture, and technology consulting,
engineering, security, infrastructure, development and
management and quality consulting services.
5. The company disclosed rise of 23.50% in consolidated net profit
on year to year basis Rs.36.58 billion, while total income is
increased 26.31% year to year basis to Rs.168.73 billion for the
quarter ended march2013. In addition TCS offers software
package for electronic banking, insurance billing, customer
relationship management and hospital management. It caters
finance and banking, insurance, Tele-communication,
transportation, retail, manufacturing, pharmaceutical, energy
and utility industries.
6. The company generates around 19% of its revenue from the
manufacturing industry and 6% of its revenue from its
engineering and industrial services [EIS] business.
7. The company generated consolidated revenues of USD 4.3 billion
for the fiscal year ended by the 2017 march TCS went to public in
2004, raising USD 1.17 billion in one of the largest initial public
offerings.

3. FUTURE PROSPECTS:-
➢ Diligenta, a subsidiary of TCS has announced that it has entered
the U.K BPO life insurance market having secured a USD 486
billion deal with pearl, the Peterborough based closed fund
group. Diligenta will provide BPO services.
➢ TCS has been recommended enterprise wide for ISO 9001:2000
BS 7799-2:2002 and BS 1550-1:2002 certifications. This is the
largest enterprise wide multiple certification of an IT solutions
and organizations date. It is the company’s second enterprise
wide achievement after it became the first company to be
assessed enterprise-wide, for CMMI and PCMM at level 5 in
2004.
➢ TCS has planned a CAPEX of Rs.10 million for the current
financial year. It employees more than 60,000 people and
adding more than 30,000 this year. This will amount to the net
addition of around of 25,000 employees. The planning plan to
increase his headcount in Hyderabad to 10,000 by 2010 from
over 4,200 now.
➢ TCS is planning to open an out sourcing center in Poland and
there by mark its presence in 34 countries across the world.
➢ Tata consultancy services is negotiating about 5 to 10 IT services
deals of USD 50 to USD 100 million each across the various
verticals.
PAST PERFORMANCE:-

4. ✓ BY 2008, TCS e-business activities were generating over
US$500 million in the annual revenues.
✓ On 25 august 2004, TCS became a publicly listed company.
✓ In 2005 TCS became a first india based IT services company to
enter the bio-informatics market.
✓ In 2006 TCS designed an ERP system for the railway catering
and the tourism corporation.
✓ In 2008 TCS undertook an internal restructuring exercise which
aimed to increase the company ability.
✓ TCS entered the small and medium enterprises market for the
first time in 2011, with cloud based offerings. [25] On the last
trading day of 2011, TCS overtook RIL to achieve the highest
market capitalization of any India-based company.
✓ In the 2011/12 fiscal year, TCS achieved annual revenues of
over US$10 billion for the first time.
✓ In May 2013, TCS was awarded a six-year contract worth over
INR 1100crore to provide services to the Indian Department of
Posts.
✓ In 2013 TCS moved from the 13th position to 10th position in
the League of top 10 global IT services companies.
POLICIES ADOPTED BY TCS
ACCOUNTING POLICY, ACCOUNTING STANDARD, PROVISION
AVAILABLE UNDER ACCOUNTING STANDARD

5. As-1- Disclosure of Accounting Policies
Cash Flow Statements:-
AS-3- Small and Medium sized Entities may not disclose their
Net Profit And Loss:-
AS-5 -Special Disclosure for disposal of items of fixed assets
and long term investments. Litigation Settlements.
Depreciation :-
AS-6 -Not Applicable on Assets with Unlimited Life. Revenue
Recognition AS-9 Not Applicable on Revenue Arising from
Construction Contracts, Lease Agreements and Government
Grants.
Earning pershare:-
AS-20- Small and Medium sized Entities may not disclose their
diluted earning per share.

6. Consolidated income statement:-
Quarterly June 2020 March 2020 December 2020 September 2020 June 2019
Sales 38,322 39,946 39,854 38,977 38,172
Other income 598 738 818 1,361 1,675
Total income 38,920 40,684 40,672 40,388 39,847
Total expenditure 29,274 29,921 29,880 29,616 28,952
EBIT 9,646 10,763 10,792 10,722 10,895
Interest 142 251 223 193 257
tax 2,455 2,419 2,426 2,471 2,485
Net profit 7,049 8,093 8,143 8,058 8,153

7. Consolidated
Balance sheet of TCS:-
Equities & liabilities Mar 2020 Mar 2019 Mar 2018 Mar 2017 Mar 2016
Share capital 375 375 191 197 197
Reserves & surplus 83,751 89,071 84,937 86,017 70,875
Current liabilities 27,060 22,083 17,828 14,512 15,569
Other liabilities 9,713 3,413 3,430 2,526 2,455
Total liabilities 120,899 114,943 106,296 103,252 89,096
Assets:-
Fixed assets 20,124 11,553 11,506 11,645 11,775
current assets 90,237 92,131 81,224 80,316 63,213
Other assets 10,538 11,259 13,556 11,291 14,108
Total assets 120,899 114,943 106,296 103,252 89,096
Consolidated
Cash flows statement of TCS:-

8. Mar 2020 Mar 2019 Mar 2018 Mar 2017 Mar 2016
Operating activities 32,369 28,593 25,067 25,223 19,109
Investing activities 8,565 1,596 2,886 -16,732 -5,150
Financing activities -39,915 -27,885 -26,885 -11,026 -9,666
others 403 49 218 -163 140
Net cash flow 1,422 2,341 1,286 -2,698 4,433
EARNING PERSHARE RATIOS OF TATA CONSULTANCY
SERVICES:-
Per share ratios Mar 2020 Mar 2019 Mar 2018 Mar 2019 Mar 2016
Basic EPS 86.19 83.05 134.19 133.41 123.18
Diluted EPS 86.19 83.05 134.19 133.41 123.18
Cash EPS 95.94 89.65 146.04 143.88 133.13
Book value
[ExclReserve]/share
226.00 239.73 447.80 439.49 362.57
Book value
[InclRevalreserve]/share
226.00 239.73 447.80 439.49 362.57

9. Revenue from
operations/share
418.23 390.27 644.52 598.81 551.50
PBIT/Share 124.54 116.85 189.31 185.44 171.38
PBIT/share 115.13 110.83 178.76 175.36 161.79
PBIT/share 122.66 110.83 178.49 175.19 161.62
Net profit/share 86.53 84.17 135.50 133.79 123.54
NP after MI and SOA/
share
86.24 83.93 135.21 133.45 123.20
Return On Capital Employed
4.3
2.5
3.5
4.5
2.4
4.4
1.8
2.8
2 2
3
5
0
1
2
3
4
5
6
Category 1 Category 2 Category 3 Category 4
RETURN ON CAPITAL
Series 1 Series 2 Series 3

10. Proprietary Ratio
•Proprietary Ratio = Proprietary fund / Total Assets
•44051.88 / 57604.19 = 76.4%
Price Earning Ratio
• P/E Ratio = Market value per share/Earnings per share
• TCS P/E Ratio = 25.5
Mergers and Acquisitions:-
• 2004 January -AFS
• 2004 January- ASDC
• 2004 July- Phoenix Global Solutions
• 2005 October- Financial Network Solutions
• 2005 October- Pearl Group
• 2006 February- Tata InfoTech
• 2008 December- Citigroup Global Services
• 2013 July- Alti Sa.
Current News, Events and Scenario:-

11. • TCS announced to spend Rs 100 crores for Clean India Campaign on
Independence Day.
• TCS became first Indian company to achieve market capitalization
of Rs 5 lakh crores on 23rd July 2015.
• TCS joined the league of top 10 global IT service companies.
• Plans to setup largest corporate learning centre in
Thiruvanthapuram.
• TCS on June 16, 2015 announces to launch Center for Excellence
(CoE) for next generation technology solution.
TCS Generic Business Strategy:-
• Low cost Global delivery 24*7 model
• Focus on customer relationship management, customer retention
(for repeat business revenue which is 95.6%).
• Timely delivery with the help of proven delivery & quality
framework –iQMS. • Differentiation in low end services in terms of
cost, resources
. • Differentiation in high end services as consulting in terms of niche
offerings, expertise.
• Protection from currency fluctuations with the help of currency
hedging.

12. Market Development Strategy:-
• New/Emerging Markets: India, Middle-east and Australia.
• Current Product: ADM,BPO,KPO, consultancy services (in BFSI,
manufacturing and retail) and software products (financial products)
• Recommendation: Since these are fast developing IT market, TCS
needs a paradigm shift in focus from US and EU markets to these
markets.
TCS Joint Ventures:-
1. TCS went for a joint venture (JV) in Feb 2007 with three Chinese
partners.
2. The TCS joint venture will thus be one of the largest software
companies in China once it reaches its 5,000- employee target.
3. Another JV is between TCS and SBI (State Bank Of India) in Nov
2005 to cater advanced technology solutions and domain consulting
for the banking and financial services sector.
CONCLUSION:-
➢ Financial year 2012-2013, global economic slowdown.

13. ➢ Overcoming uncertainties was a challenge.
➢ Higher rate of efficiency and preparedness was needed.
➢ TCS on a consolidated basis, achieved a well rounded growth.
➢ United Kingdom (44%), Latin America, (40%), North America
(27%), Europe (21%), Asia Pacific (27%), Middle East Africa (28%)
and India (16%).
➢ Company crossed USD 3 billion revenue in a quarter during Q4 of
the financial year 2012- 2013.
➢ Last quarter TCS booked profits around 34% profit compared to
last year.
➢ Key player in IT sector.
Quality Initiatives:-
✓ Indias most admired knowledge enterprise (MAKE) winner -1st
place.
✓ 8th time in India as well as Asia.
✓ TCS won the Quest forum India quality award 2012 for being the
first telecom software company in the world to implement the
advanced surveillance.
✓ And recertification procedure (ASRP) methodology for TL 9000.
✓ A diverse workforce of 2,76,196 representing 118 nationalities.
THANK YOU