MIRA
INFORM REPORT
|
Report Date : |
26.07.2008 |
IDENTIFICATION
DETAILS
|
Name : |
TATA CONSULTANCY SERVICES LIMITED |
|
|
|
|
Registered Office : |
9th Floor, Nirmal Building, Nariman Point, Mumbai – 400021,
Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2008 |
|
|
|
|
Date of Incorporation : |
09.01.1995 |
|
|
|
|
Com. Reg. No.: |
11-84781 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L22210MH1995PLC084781 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
MUMT00681C / MUMT11446B |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACR4849R |
|
|
|
|
Legal Form : |
Public Limited Liability Company. The company’s shares are listed on the stock exchange. |
|
|
|
|
Line of Business : |
IT Services and Software Development |
RATING &
COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
Maximum Credit Limit : |
USD 550000000 |
|
|
|
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well – established and reputed company having excellent
track. It is a part of Tata group, country’s premier industrial house.
Fundamentals are strong and healthy. Payments are always correct and as per
commitments. The company can be considered good for any normal business dealings. It can be regarded as a promising business partner in medium to long
run. |
LOCATIONS
|
Registered Office : |
9th Floor, Nirmal Building, Nariman Point, Mumbai – 400021,
Maharashtra, India |
|
Tel. No.: |
91-22-67789595 |
|
Fax No.: |
91-22-67789660 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
TCS House, Raveline Street, Fort, Mumbai – 400001, Maharashtra, India |
|
Tel. No.: |
91-22-67789999 |
|
Fax No.: |
91-22-67789000 |
|
E-Mail : |
DIRECTORS
|
Name : |
Mr. R N Tata |
|
Designation : |
Chairman |
|
Date of Birth : |
28.12.1937 |
|
Qualification : |
Bachelor of Science degree in Architecture from Cornell University.
Completed the Advanced Management Program Conducted by Harvard
University |
|
Date of Appointment : |
05.05.2004 |
|
Other Directorship : |
|
|
|
|
|
Name : |
Mr. S Ramadorai |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Aman Mehta |
|
Designation : |
Director |
|
Date of Birth/Age : |
01.09.1946 |
|
Qualification : |
Bachelors degree in Economics from Delhi University |
|
Experience : |
Wide experience in Banking and finance |
|
Date of Appointment : |
06.05.2004 |
|
Directorship held in other Public Companies (excluding foreign
companies) : |
· Wockhardt Pharmaceuticals Limited · Jet Airways Limited · Max Healthcare Institute Limited · Godrej Consumer · Products limited · Cairn India limited |
|
|
|
|
Name : |
Mr. Naresh Chandra |
|
Designation : |
Director |
|
Date of Birth/Age : |
01.08.1934 |
|
Qualification : |
Master of Science in Mathematics from Allahabad University and a
retired IAS officer |
|
Experience : |
Retired senior bureaucrat in the government of India |
|
Date of Appointment : |
19.08.2004 |
|
|
|
|
Name : |
Mr. V Thyagarajan |
|
Designation : |
Director |
|
Date of Birth : |
19.04.1946 |
|
Qualification : |
B. Tech [Elec] and M.B.A. from the Indian Institute of Management
Ahmedabad |
|
Date of Appointment : |
05.09.2005 |
|
Other Directorship : |
Glaxo Smithkline Pharmaceuticals Limited |
|
|
|
|
Name : |
Mr. Clayton M Christensen |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ron Sommer |
|
Designation : |
Director |
|
Date of Birth/Age : |
05.09.2006 |
|
Qualification : |
Ph .D in mathematics |
|
Experience : |
Wide experience in telecom and Business |
|
|
|
|
Name : |
Mr. Laura Cha |
|
Designation : |
Director |
|
Date of Birth/Age : |
05.12.1949 |
|
Qualification : |
B A JD (Juris Doctor i.e, doctor of law) |
|
Experience : |
Wide experience in Law, Banking and securities markets. |
|
Date of Appointment : |
02.11.2006 |
KEY EXECUTIVES
|
Name : |
Mr. S H Rajadhyaksha |
|
Designation : |
Company secretary |
|
|
|
|
Name : |
Mr. Suprakash Mukhopadhyay |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. S. Ramadorai |
|
Designation : |
Chief Executive Officer and Managing Director |
|
|
|
|
Name : |
Mr. N. Chandrasekaran |
|
Designation : |
Chief Operating Office and Executive Director |
|
Date of Birth : |
02.06.1963 |
|
Qualification : |
Bachelor’s degree in Applied Sciences and Master’s Degree in Computer
Applications |
|
Date of Appointment : |
06.09.2007 |
|
Other Directorship : |
|
|
|
|
|
Name : |
Mr. S. Mahalingam |
|
Designation : |
Chief Finance Officer and Executive Director |
|
Date of Birth : |
10.02.1948 |
|
Qualification : |
06.09.2007 |
|
Date of Appointment : |
Bachelor’s degree in Commence [Honours], ACA |
|
Other Directorship : |
|
|
|
|
|
Name : |
Mr. Phiroz A. Vandrevala |
|
Designation : |
Executive Director and Head Global Corporate Affairs |
|
Date of Birth : |
08.12.1953 |
|
Qualification : |
Bachelor’s degree in Commerce [Honours], ACA |
|
Date of Appointment : |
07.09.2007 |
|
|
|
|
Name : |
Mr. A. Mukherjee |
|
Designation : |
VP and Head, Global Human Resources |
|
|
|
|
Management Team: |
|
|
Function Name Corporate CEO and MD S Ramadorai CFO S Mahalingam Corporate Affairs Phiroz
Vandrevala Global Sales and
Operations N Chandrasekaran Global Human Resource |
Mr. S Ramodorai Mr. S Mahalingam Mr. Phiroz Vandrevala Mr. N Chandrasekaran Mr. S Padmanabhan |
|
Geography
Heads North America United
Kingdom Europe Asia Pacific Iberoamerica MEA India |
Mr. Surya
Kant Mr. A S
Lakshminarayanan Mr. Girish
Ramachandran Mr. Girija
Pande -
Mr. Johnson
Lam -
Mr. Masahiko Kaji Mr. Gabriel Rozman Mr. Manoj Sahai |
|
Marketing R and D Human Resources Information Systems Legal Administration Finance Company Secretary |
Mr. J V Pendharkar Mr. Keith Sharp Mr. John Lenzen Mr. Jim Thomas Mr. K Ananthakrishnan Mr. Mathai Joseph Mr. K V Nori Mr. M Vidyasagar Mr. Gautam Shroff Mr. Sunil Sherlekar Mr. Harrik Vin Ms. Ritu Anand Mr. Ashok Mukherjee Mr. K Ganesan Mr. Thomas Simon Ms. Jyoti Srivastava Mr. Alok Kumar Ms. Bandana Sinha Mr. Satya Hegde Mr. Madhav Anchan Mr. G George Mr. B Sanyal Mr. V Ramakrishnan Mr. Pauroos Karkaria Mr. Alberto Arana Mr. S H Rajadhyaksha |
|
Industry
Practices Banking and Financial
Services Insurance Telecom Government Healthcare and Life
Sciences Energy and Utilities Retail Media Entertainment Travel and Hospitality |
Mr. N G Subramaniam Mr. J R Bhandari Mr. Ravi Shah Mr. K Padmanabhan Mr. Usha Lakshmanan Mr. N Sivasamban Mr. Tanmoy Chakrabarty Mr. J Rajagopal Mr. Ajoyendra Mukherjee Mr. Edward Altman Mr. Pratik Pal Mr. G Srinivasa Raghvan |
|
Service
Practices Engineering and
Industrial Services Business Process
Outsourcing Enterprise Solutions Technology Solutions Infrastructure Services Business Intelligence Consulting Migration/Re-engineering
Solutions Security System
Integration/Outsourcing Assurance Service |
Mr. Regu Ayyaswamy Mr. Milind Kamat Mr. V K Raman Mr. Hasit Kaji Mr. Raj Agarwal Ms. Anita Nanadikar Mr. P R Krishnan Mr. Santosh Mohanty Mr. George Bacon Mr. Arun Agarwal Mr. V Ramaswamy Mr. Sudheer Warrier Mr. R K Raghavan Mr. Sanjay Bahl Mr. B Gopal Mr. Satish Thiagarajan |
|
Products |
Mr. N G Subramaniam Mr. Pradipta Pandit Mr. R Vivekanad Mr. Sanjay Bhanot Mr. Manoj Govel |
|
Global
Delivery |
Mr. Ravi Vishwanathan Mr. Susheel Vasudevan Mr. Nagraj Ijari Mr. Abid Ali Mr. Debashis Ghosh Mr. Ajoyendra Mukherjee Mr. V Rajanna Mr. Carol Wilson Mr. Satish Varma Mr. K Subramaniam |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.03.2008:-
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Shareholding of promoter and promoter group2 |
|
|
|
Bodies corporate |
742491165 |
75.87 |
|
Trust |
16394328 |
1.68 |
|
Public
shareholding3 |
|
|
|
Mutual Funds / UTI |
12662081 |
1.29 |
|
Financial Institutions / Banks |
1005267 |
0.10 |
|
Central Government / state Government |
1470 |
0.00 |
|
Insurance companies |
38834836 |
3.97 |
|
Foreign Institutional Investors |
105554562 |
10.79 |
|
Non
Institutions: |
|
|
|
Bodies corporate |
8118278 |
0.84 |
|
Individual shareholder holding nominal
share capital upto Rs. 0.100 million |
45777592 |
4.67 |
|
Individual shareholder holding nominal
share capital excess of Rs. 0.100
millions |
7228680 |
0.74 |
|
Any
others |
|
|
|
Overseas Corporate Bodies |
1714 |
0.00 |
|
Trust |
28919 |
0.00 |
|
Clearing Member / House |
511606 |
0.05 |
|
Total
|
978610498 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
IT Services and Software Development |
||||
|
|
|
||||
|
Products : |
|
PRODUCTION STATUS (as on 31.03.2008):
|
Particulars |
|
|
Installed
Capacity |
Actual
Production |
|
Documents processing systems |
|
|
2000 |
442 |
GENERAL
INFORMATION
|
No. of Employees : |
18000 |
||||||||||
|
|
|
||||||||||
|
Bankers : |
v Standard Chartered Grindlays Bank Limited v Citibank N.A. v The National Bank of Bahrain v ABN Amro, U.S.A. v Credit Suisse, Switzerland v Bank Tejarat, Iran v Nepal Arab Bank Limited, Nepal v ABN Amro, Malaysia v UNI Bank, Denmark v CIBC Bank, Canada v DBS, Singapore |
||||||||||
|
|
|
||||||||||
|
Facilities : |
( Rs in millions)
Note: Bank overdraft is secured against domestic book debts.
|
|
|
|
|
Banking
Relations : |
Good |
|
|
|
|
Auditors : |
Statutory Auditors S B Billimoria and Company Chartered Accountants 12 Dr. Annie Besant Road, Opposite Shiv Sagar Estate, Worli Mumbai – 400018, Maharashtra Tel. No.: 91-22-56679000 Fax No.: 91-22-56679025 E-Mail : mumbai@sbbandco.com US GAAP Auditors Deloitte Haskins and Sells Chartered Accountants |
|
|
|
|
Holding Company: |
· Sitel India Limited · Tata Sons Limited |
|
|
|
|
Associates/Subsidiaries : |
· The Tata Engineering and Locomotive Company Limited · Tata Infomedia Limited · Tata Investment Corporation Limited · The Tata Iron and Steel Company Limited · Tata Power Company Limited · Trent Limited · Tata AIG Risk Management Services Limited · Tata TD Waterhouse Asset Management Private Limited · Tata Trustee Company Limited · Tata Industries Limited · Associated Building Company Limited · Tata International Limited · Niskalp Investment and Trading Company Limited · Videsh Sanchar Nigam Limited · Voltas Limited · Technopolis Knowledge Park Limited · Rentbazaar (India) Limited · Tata Consultancy Services, Belgium SA · Tata Consultancy Services, Deutschland GmbH · Tata Consultancy Services, Netherlands BV · Tata Consultancy Services, Sverige AB · Tata Consultancy Services. France SA · Titan Marketing International Limited · Titan International Investments · TKM Overseas Transport Limited · TKM Overseas Transport Inc · TKM Overseas Transport (Europe) GmbH · TKM Logistic Pte Limited · Tata Consulting Engineers International AG · Tata Precision Industries (Pte) Limited · Airline Financial Support Services Limited · Aviation Software Development Consultancy India Limited · Conscripti (Pty) Limited · Engineering Analysis Centre of Excellence Private Limited · Intelenet Global Services Private Limited · CMC Limited · CMC Americas Inc. · Tata Housing Development Company Limited · Tata Information Technology (Shanghai) Company Limited · Tata Consultancy Services Japan Limited · Tata consultancy services Malaysia Sdn Bhd · Tata Consultancy Services (China) Company Limited (W.e.f 16.11.2006) · PT Tata Consultancy Services Indonesia (w.e.f 05.10.2006) ·
TCS Solution Center S.A.,
Uruguay ·
TCS Argentina S.A. ·
Tata Consultancy Services
Do Brasil ·
Desenvolvimento De
Servicos Limited ·
(formerly TCS Brazil S/C
Limited) ·
Tata Consultancy Services
De Mexico S.A. De C.V. ·
TCS Inversiones Chile
Limiteda ·
Tata Consultancy Services
De Espana S.A. ·
Tata Consultancy Services
Do Brasil S.A. ·
Tata Consultancy Services
Chile S.A. ·
Tata Consultancy Services
BPO Chile, S.A. * ·
Comicrom S.A. * ·
Sisteco S.A. * ·
Tata Consultancy Services
Chile Limited * ·
Syscrom S.A. ·
Pentacrom S.A. ·
Pentacrom Servicios S.A. ·
Custodia De Documentos
Intres Limited ·
Tatasolution Center S.A.
(w.e.f. 28-12-2006) ·
Tata Consultancy Services
Portugal ·
Unipessoal Limited ·
Tata Consultancy Services
Netherlands B.V. ·
Tata Consultancy Services
Luxembourg S.A. ·
KS – Teknosoft S.A.
(w.e.f. 31-10-2006) ·
TKS Services S.A. (w.e.f.
31-10-2006) ·
Quartz Software
Technology S.A. (w.e.f. 31-10-2006) ·
TKS Banking Solutions
S.A. (w.e.f. 31-10-2006) ·
TKS Teknosoft (France)
SAS (w.e.f. 31-10-2006) ·
TCS Italia SRL ·
TCS FNS Pty Limited i)
Financial Network Services (Holdings) Pty Limited ·
Financial Network
Services Pty Limited ·
Financial Network
Services (Facilities ·
Management) Pty Limited ·
Financial Network
Services Europe Plc ·
PT Financial Network
Services ·
Financial Network
Services (Africa) (Pty) Limited ·
Financial Network
Services (H.K.) Limited ·
Financial Network
Services Malaysia Sdn Bhd ·
TCS Management Pty
Limited (w.e.f. 08-11-2006) ·
Financial Network
Services (Beijing) Company Limited (w.e.f. 29-12-2006) ·
Chong Wan Investments Limited (Dissolved on
08-09-2006) ·
APONLINE Limited ·
Tata America
International Corporation ·
Tata Consultancy Services
Belgium S.A. ·
Tata Consultancy Services
Deutschland GmbH ·
Tata Consultancy Services
France SAS ·
WTI Advanced Technology
Limited ·
Tata Infotech Deutschland
GmBH ·
Tata Infotech (Singapore)
Pte Limited ·
Exegenix Canada Inc. ·
Diligenta Limited ·
C-Edge Technologies
Limited ·
MP Online Limited ·
Tata AIG General
Insurance Company Limited ·
Tata AIG Life Insurance
Company Limited ·
TCE Consulting Engineers
Limited ·
E2E Serwiz Solutions
Limited ·
Tata Sky Limited
(formerly Space TV Limited) ·
THDC Limited (formerly
Tata Housing Development Company Limited) ·
Tata Teleservices Limited ·
Tata Teleservices
(Maharashtra) Limited ·
Tata Internet Services
Limited ·
Tata Limited, London ·
Ewart Investment Limited ·
Primal Investment and
Finance Limited ·
Concept Marketing and
Advertising Limited ·
Tata International AG,
ZUG ·
Tata AG., ZUG ·
Panatone Finvest Limited ·
Tata Asset Management
Limited ·
Tata Petrodyne Limited ·
Wireless-TT Infoservices
Limited ·
Infiniti Retail Limited
(formerly Value Electronics Limited) ·
Tata Asset Management
(Mauritius) Limited ·
Ewart Investment Private
Limited (Mauritius) (w.e.f. 30-08-2006) ·
Tata Pension Management
Limited (w.e.f. 31-08-2006) ·
Computational Research
Laboratories Private Limited (w.e.f. 12-07-2006) ·
Tata Realty and
Infrastructure Limited (w.e.f. 02-03-2007) ·
Conscripti (Pty) Limited ·
Exegenix Research Inc. ·
Firstech Solution Company Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2200000000 |
Equity shares |
Rs. 1/- each |
Rs. 2200.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
978610498 |
Equity shares |
Rs. 1/- each |
Rs. 978.610
millions |
Notes:
a) Equity Shares
of Rs. 10 each have been sub-divided into ten equity shares of Re. 1 each
pursuant to the resolution passed by the shareholders at the Annual General Meeting
on May 5, 2004.
b) The company
allotted 91100009 equity shares as fully paid up bonus shares by capitalization
of profit transferred from General Reserve, pursuant to a shareholders
resolution passed at the Annual General Meeting on May 5, 2004.
c) The Authorised
Share Capital was increased to 1200000000 equity shares of Re. 1 each pursuant
to a shareholders’ resolution passed at the Annual General Meeting on June 29,
2006.
d) The Company
allotted 91100009 equity shares as fully paid up bonus shares by capitalisation
of profits transferred from General Reserve, pursuant to a shareholders’
resolution passed at the Annual General Meeting on May 5, 2004.
e) The Company
allotted 489305249 equity shares as fully paid up bonus shares on July 31, 2006
by utilisation of Securities Premium Account.
f) 9190440 equity
shares of Re. 1 each had been allotted in 2005-06 as fully paid up to the
Shareholders of erstwhile Tata Infotech Limited pursuant to the Scheme of
Amalgamation
g) The Authorized Shares
Capital was increased to Rs. 2200 Millions by creation of 1000000000 redeemable
preference shares for face value of Rs. 1 each pursuant to a shareholders
resolution passed by postal ballot on March 17, 2008.
h) Effective March
28, 2008 the Issued, Subscribed and Paid up capital increased to Rs. 1978.600
Millions by allotment of 1000000000 redeemable preference shares of face value
of Rs. 1 each. These shares would be redeemable at par at the end of six years
from the date of allotment but may be redeemable at any time after 3 years from
the date of allotment at the option of shareholder. These shares would carry a
fixed cumulative dividend of 1 % of the difference between the rate of dividend
declared during the year on the equity shares of the company for three years
proceeding the year of issue of the redeemable preference shares.
i) 734104023
equity shares and 1000000000 redeemable preference shares are held by Tata Sons Limited, the
holding company.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
1978.600 |
978.600 |
489.300 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
108069.500 |
79611.300 |
55604.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
110048.100 |
80589.900 |
56093.300 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
92.700 |
417.600 |
265.200 |
|
|
2] Unsecured Loans |
89.800 |
89.800 |
89.800 |
|
|
TOTAL BORROWING |
182.500 |
507.400 |
355.000 |
|
|
DEFERRED TAX LIABILITIES |
544.900 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
OTAL |
110775.500 |
81097.300 |
56448.300 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
19405.300 |
14606.100 |
11697.800 |
|
|
Capital work-in-progress |
8897.400 |
7578.500 |
2800.00 |
|
|
|
|
|
|
|
|
INVESTMENT |
45093.300 |
32520.400 |
19635.200 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
171.900
|
120.600
|
229.400 |
|
|
Sundry Debtors |
37470.100
|
27998.000
|
23258.300 |
|
|
Cash & Bank Balances |
5275.200
|
5571.400
|
1711.700 |
|
|
Other Current Assets |
8712.500
|
0.000
|
0.000 |
|
|
Loans & Advances |
21666.000
|
19321.300
|
14975.100 |
|
Total
Current Assets |
73295.700
|
53011.300
|
40174.500 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
24041.800
|
17568.500
|
12453.800 |
|
|
Provisions |
11874.400
|
9050.500
|
5405.400 |
|
Total
Current Liabilities |
35916.200
|
26619.000
|
17859.200 |
|
|
Net Current Assets |
37379.500
|
26392.300
|
22315.300 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
110775.500 |
81097.300 |
56448.300 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
|
|
|
|
|
|
Sales Turnover |
185337.200 |
149420.900 |
112360.100 |
|
|
Other Income |
4459.500 |
2165.500 |
632.600 |
|
|
Stock adjustments |
0.000 |
[27.800] |
41.400 |
|
|
Total Income |
189796.700 |
151558.600 |
113034.100 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
50038.600 |
41706.800 |
30743.500 |
|
|
Provision for Taxation |
4951.000 |
4133.900 |
3574.800 |
|
|
Profit/(Loss) After Tax |
45087.600 |
37572.900 |
27168.700 |
|
|
|
|
|
|
|
|
Export Value |
167764.800 |
138024.700 |
101270.800 |
|
|
|
|
|
|
|
|
Import Value |
|
|
|
|
|
|
Raw Materials |
411.900 |
149.600 |
|
|
|
Stores & Spares |
2315.500 |
3529.900 |
2183.000 |
|
|
Capital Goods |
00.700 |
0.000 |
|
|
Total Imports |
2728.100 |
3679.500 |
2183.000 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Raw Materials |
0.000 |
215.000 |
1603.300 |
|
|
Excise Duty |
0.000 |
21.200 |
55.100 |
|
|
Power and fuel |
0.000 |
938.900 |
668.500 |
|
|
Other manufacturing Expenses |
0.000 |
21981.800 |
15414.700 |
|
|
Employee cost |
60151.900 |
70545.300 |
51088.400 |
|
|
Selling and administrative Expenses |
0.000 |
10991.500 |
8669.000 |
|
|
Miscellaneous Expenses |
0.000 |
1689.700 |
2172.900 |
|
|
Interest and Financial Charges |
34.200 |
34.300 |
44.900 |
|
|
Depreciation |
4587.800 |
3434.100 |
2573.800 |
|
|
Operation and other Expenses |
74984.200 |
0.000 |
0.000 |
|
Total Expenditure |
139758.100 |
109851.800 |
82290.600 |
|
KEY RATIOS
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Debt-Equity Ratio |
0.00 |
0.01 |
0.02 |
|
Long Term Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
|
Current Ratio |
1.98 |
2.08 |
1.96 |
|
TURNOVER RATIOS |
|||
|
Fixed Assets |
6.67 |
7.45 |
8.21 |
|
Inventory |
1267.46 |
853.83 |
979.60 |
|
Debtors |
5.66 |
5.83 |
5.92 |
|
Interest Cover Ratio |
1464.12 |
1216.94 |
685.71 |
|
Operating Profit Margin(%) |
29.49 |
30.23 |
29.69 |
|
Profit Before Interest And Tax
Margin(%) |
27.01 |
27.94 |
27.40 |
|
Cash Profit Margin(%) |
26.80 |
27.44 |
26.47 |
|
Adjusted Net Profit Margin(%) |
24.32 |
25.15 |
24.18 |
|
Return On Capital Employed(%) |
52.34 |
60.69 |
67.77 |
|
Return On Net Worth(%) |
47.55 |
54.98 |
60.85 |
LOCAL AGENCY
FURTHER INFORMATION
Operating
Results and Business:
The Company continued to see strong and profitable growth in the financial year
2007-08 across all markets driven by good performance in existing and new areas
of business.
For the year ended March 31, 2008, the Company earned a total income of Rs.189796.700
Millions, an increase of 25.22 % over previous year's Rs.151565.200 Millions.
As per the Consolidated Accounts the total income was Rs.233494.500 Millions,
an increase of 23.45% over the previous year's Rs.189142.600 Millions.
The net profit of the Company for the year increased to Rs.45087.600 Millions
(23.76% of the total income) as compared to Rs.37572.900 Millions (24.79% of
total income) in the previous year. As per the Consolidated Accounts the net
profit for the year was Rs.50260.200 Millions (21.53% of total income) as
compared to Rs.42126.300 Millions (22.27% of total income) in 2006-07.
The Company is among the leading global IT companies, and continues to retain
its leadership position in the Indian IT Industry. It has continued to win new
engagements and grow existing relationships in the traditional area of
Application Development and Maintenance and is strengthening its presence in
areas such as Consulting, Infrastructure Management Services, Asset Based
Solutions, Engineering & Industrial Services, IT Enabled Services,
Assurance and Business Intelligence Services. The broad range of services
enables the Company to provide 'end-to-end' services to its clients, in line
with its position as a Global IT and Consulting Services company. Combined with
its Industry focus and its geographical spread, the Company is able to provide
comprehensive and high value added services to its clientele.
The Company has been growing at a substantial pace. With Revenues at
Rs.185337.200 Millions for the year ended March 31, 2008, TCS has, over the
last four years as a listed company, recorded a CAGR of 23.8%. Considering the
need to deepen relationships with customers in each Industry segment, to
acquire new customers in markets where TCS is already a significant force and
to expand in emerging markets, the Company has during the year, chalked out a
new strategy and has realigned its operating structure. The revised
organisational operating structure paves the way for more accountability and
performance and there is a P&L responsibility cast on Heads of Operations.
These measures will help the Company to retain its leading position amidst
growing intense competition globally.
The Company's Indian and global operations have shown growth. In India, the
Company is also partnering with the Central and various State Governments in
many e-governance initiatives, some of which have won accolades. The
Company/its subsidiaries have won many high-value and strategic contracts in
India and across the globe.
The Company's continued investments in innovation and technology have enabled
it to undertake a number of large, end-to-end, mission critical projects in
diverse business areas and technology domains.
The Company has 155 offices globally. In addition, the Company also has
Delivery Centres in a number of countries. Major Delivery Centres outside India
are in Hungary, Brazil, Chile, Uruguay and China. During the year, the Company
has opened a Centre in Cincinnati, USA, and a large centre in India at Hyderabad
and laid the foundation for a large centre in Pune. The Company services the
needs of its global clients by linking the clients to one or more of these
Delivery Centres. Through the establishment of Delivery Centres in different
parts of the globe with the same high quality processes and by enabling
customers to make use of a group of these Centres depending on their needs, the
Company enables each of its customers to Experience certainty, which has been
the theme of its branding exercise during the year. TCS has pioneered the
Global Network Delivery ModelTM, which the customers see as a key
differentiator.
USA continued to be the largest market and contributed 50.77% to the Company's
consolidated revenues while other established markets like the UK and Europe
contributed 28.99% of the consolidated revenues. The Company's decision to
invest in emerging markets like Latin America and Asia Pacific is yielding
results with these markets contributing 4.40% and 5.20% respectively to the
consolidated revenues of the Company. India remains a strategic market for the
Company and continues to demonstrate growth in absolute terms.
Diligenta Limited, the Company's subsidiary in the UK, which was set up in
2005-06 to focus on services in the life insurance and pensions BPO market in
the UK, has expanded its services and has signed another contract of
significant importance. Tata Consultancy Services (China) Company Limited, the
strategic joint venture supported and promoted by National Development and
Reforms Commission (NDRC) has also been acquiring new customers. These
customers are either multinationals with significant operations in China or
large Chinese enterprises. During the short period that TCS has been in
operation in China, it has created a good track record of executing projects
and developing a highly productive local work force. The synergy between the
various subsidiaries of the Company and the competitive advantage in terms of
niche products and services of the subsidiaries which have been acquired in the
past couple of years are yielding results in making the TCS Group of Companies
providers of end-to-end comprehensive solutions.
Among the industry verticals, the banking, financial services and the insurance
sector contributed 44.14% of consolidated revenues on the back of large
product-based engagements in core banking and strong demand for the Company's
capital markets and insurance products and solutions. The manufacturing sector,
which contributed 9.82% of the Company's consolidated revenues, is being driven
by demand for enterprise solutions like ERP and engineering services. Other
significant verticals include life sciences & healthcare, retail, telecom
and utilities. A significant number of existing customers are now engaging the
Company for more than one service offering.
International Credit Rating:
The Company continues to have from Moody's Investors Services, an
investment-grade issuer rating of A3 as well as an indicative foreign currency
debt rating of Baa1, with the ratings outlook as stable. The rating is not for
any specific debt issuance by TCS.
The Company has also been rated by Dun & Bradstreet at 5A1
(Condition-Strong). The rating is assigned on the basis of tangible networth
and a composite appraisal of the Company.
Standard and Poor's Ratings Services has assigned to the Company its BBB'
corporate credit rating with outlook as Positive.
Branding Initiative:
The Company launched a major brand building initiative during 2007-08 in order
to articulate and propagate its new brand positioning. The advertising campaign
was launched across prestigious Indian and international magazines and
newspapers, as well as online channels, in order to increase the profile of the
Company in the global marketplace.
The brand rollout was also carried out internally within the Company, to align
the large and diversified workforce of the Company with the brand promise of
'Experience certainty'.
Strategic Acquisitions and
Alliances:
With the objective of moving towards its goal of being among the top IT
companies in the world, the Company has made acquisitions/alliances during the
past few years either directly or through its subsidiaries. Companies with
track record of successful implementation of large and complex key technology
projects, companies with niche products, services, domain knowledge and
expertise have been acquired. Strategic alliances have also been entered into
in India and abroad. The Company has effectively synergised the capabilities
and expertise of the various subsidiaries, acquired entities and strategic
alliances and is benefiting from the same. With these strategic acquisitions
and alliances, the Company has been able to expand its product and services
portfolio and is leveraging these combined strengths to consolidate its
position in existing markets, to enter new geographies and new client
verticals. TCS B NCS Core Banking which has been positioned in the Leaders
quadrant of Gartner's 'Magic Quadrant for International Retail Core Banking,
2008' illustrates this point.
The Company has, with these measures, succeeded in leveraging the complementary
strengths of its partners in technology, software development, management,
talent acquisition and training. These coupled with the world-class processes and
practices of TCS as well as TCS' experience in handling large and industrial
scale technology projects, are expected to further strengthen TCS' leading
position in the international arena.
Interface
with Academia:
The pioneering effort of TCS in bridging the gap between the Academia and the
Industry continues in full swing. This year, TCS conducted a course on
'Information System Auditing and Control' for the MBA program of IIT-
Chennai.
In October 2007, TCS organised the 9th Annual TCS Academic Interaction Meet
where 65 academic leaders, including academicians from Uruguay, Brazil, China,
Singapore and USA had invigorating interactions on various issues facing the
industry and the academic world.
Quality Initiatives:
Reinforcing its commitment to high levels of quality, best-in-class service
management and robust information security practices, the Company attained a
number of milestones during the year.
TCS was re-assessed, enterprise-wide, at maturity level 5 of the CMM(R) v1.2
model. TCS was also recommended enterprise-wide for continuation of the ISO
9001:2000, ISO 27001:2005 and ISO 20000:2005 certification. The audit was a
Surveillance Audit for ISO 9001:2000, ISO 27001:2005; ISO 20000-1:2005 and expansion
audit for ISO 20000-1:2005 for BPO. TCS also continues to maintain the domain
specific certifications AS9100, TL9000 and ISO 13485.
An enterprise-wide appraisal endorses the premise of the integrated Quality
Management System (iQMS) to give a consistent delivery experience to TCS'
customers across the globe. It re-iterates the customers' expectations to
experience a high degree of certainty in service delivery, as TCS stays focused
on improving quality and processes constantly in an environment of rapid
growth.
Nineteen centres of TCS were also certified for ISO 14001.
ISO 14001: 2004 provides a framework for TCS' environmental initiatives,
objectives and targets and helps in continually improving its environmental
performance. TCS' commitment to environment stems from the Tata Group's abiding
concern for the environment and society. TCS being an IT organisation, its
nature of operation has a low impact on the environment. TCS aims to provide a
healthy work environment to employees and conduct an environment-friendly
business.
TL 9000 is the telecom industry's quality standard that expands the
requirements of ISO 9001:20000. This certification provides an opportunity to
compare the Company's performance with similar organisations, learn and share
best practices in the telecom domain, besides strengthening relationships with
customers on a competitive scale.
AS 9100: Rev B is a Quality Management System designed specifically for the
Aerospace industry and is based around ISO 9001:2000 standard and has been
developed by the Society of Automotive Engineers (SAE).AS 9100: Rev B is being
implemented across the international Aerospace industry, by the International
Aerospace Quality Group (IAQG). IAQG has been established for the purpose of achieving
significant improvements in quality and safety and reductions in cost,
throughout the value stream within the Aerospace industry. It includes
representation from Aerospace companies in the Americas, Asia Pacific and
Europe. ISO 13485:2003 specifies requirements for a quality management system
where an organisation needs to demonstrate its ability to provide medical
devices and related services that consistently meet customer requirements and
regulatory requirements applicable to medical devices and related services.
The above certifications are testimony to TCS' unstinting commitment to achieve
the highest standards of quality and the expertise that the company brings to
global clients. The cornerstone of these certifications is the in-house developed
integrated Quality Management System (iQMS) - a vibrant, process-driven,
people-oriented and customer-focussed quality management system which is
continuously evolving to cater to the requirements of the Company's varied
business offerings and today, is the backbone supporting the Global Network
Delivery ModelTM.
Business Excellence for the year
2007-08:
The year 2007-08 was driven by excellence which was evidenced in TCS winning
the prestigious Business Excellence Sustaining award from the Tata Group on the
JRD QV Awards Nite on July 29, 2007. Based on the feedback received from the
TBEM Assessment for the year 2007 several improvement initiatives were
undertaken:
Lifeline:
TCS continued with renewed vigour the customer satisfaction determination
process using its Lifeline process and received a very good response of 70% on
the web-enabled survey from the CXO level respondents of its clients.
Using External Agency:
After carefully evaluating proposals from 11 world-renowned global organisations,
TCS has, selected an independent external agency to carry out the Customer
Satisfaction Survey among its Key Customers on a global basis. This is expected
to begin towards the end of April 08 and the results are expected by end of
June 08.
Customer Experience Management:
An integrated Customer Complaints and Appreciation Management process is being
implemented through the Company's IPMS system. This is expected to be ready by
the second quarter of FY 09.
Succession Planning:
With a clear focus on sustaining business growth the need for leadership
development was given renewed focus. In the new operating model of the Company
all critical positions have been identified and leaders and deputy leaders have
been named.
Corporate Sustenance:
The CS policy has been formulated with clear themes and processes, and
templates have been defined for global deployment. TCS released a report on its
CS operations using GRI guidelines.
Enterprise Risk Management:
To make ERM processes available globally, a section for ERM was createdon
KNOWMAX, the Company's global knowledge management system.
Knowledge Management:
This year, TCS made the TATA Knowledge Chain a collaboration portal available
to all its 1,00,000 associates on the knowledge management system.
Corporate
Sustainability:
The focus of Corporate Sustainability (CS) in TCS is on health and education
together with diversity, ethical global sourcing and concern for the
environment. The differentiator for CS in TCS is the volunteering by TCSers
through 'Maitree', while TCS endeavours to use its IT core competence to
address societal problems. 'Maitree', an association of employees and their
families across the globe, is a key vehicle of CS within the Company. 'Maitree'
also addresses TCS' internal stakeholders and engages TCSers and their families
in a variety of meaningful activities including music, dance, trekking and
sport. In addition to these activities, 'Maitree' creates vehicles for community
service and volunteering such as reaching out to the differently abled, AIDS
education, and similar initiatives. The initiative at Waze Gram Panchayat near
Panvel is now four years old and includes a children's education programme with
a science lab, a computer lab powered by renewable energy, women's literacy and
healthcare and life skills programme, women's employment generation through
sewing programme and a water harvesting programme.
New initiatives include an Advanced Computer Training Centre for the visually
impaired that was set up in early 2008 along with MN Banajee Industrial Home
for the blind to provide training for the visually impaired in soft skills, BPO
specific skills and Infrastructure Services Training (Helpdesk).
In addition to volunteering, some noteworthy on-going CS projects of TCS in
India are: * Project mKrishi, to help farmers access localised information and
advice on agricultural issues through graphic and voice formats in local
languages on mobile phones including capsules of TCS' Adult Literacy
programme.
* InsighT, a 72 hour IT and soft skills camp for students of Class 11 (students
out of high school studying their pre-university course).
* Rural IT Quiz in collaboration with the Government of Karnataka which saw a
record participation of 1.2 million students in 2007.
* TCS IT Wiz, India's largest IT Quiz for urban school students with more than
12,000 students participating across 11 cities.
* The Computer-based Functional Literacy Programme which has served over
1,00,000 learners all over India with its offerings in eight Indian languages.
The offering in the ninth language (Kannada) is expected to be completed by end
2008.
* Software for Childline, an organisation that helps children in distress. The software
helps linking and monitoring of various Childline centres in India. The
improvised version of the software CHILDLINE V.2 integrates new and more
powerful functionalities and helps the system which receives more than 2
million calls a year.
* The TCS-EW Teachers Award for teachers from across the country who have
exhibited innovative techniques, inspired students and aroused their curiosity.
TCS has been expanding its Corporate Sustainability initiatives within the
United States and has participated in projects along with charitable
organisations like the United Way and The American Heart Association, and
supports educational causes like First Book. During the past year, over 500
TCSers participated in the 'Walk of Hope' in support of breast cancer awareness
campaign over seven US cities.
TCS has also very effectively participated in corporate sustenance programmes
of its customers, finding common cause with the customer's employees beyond
work in areas of common social concerns. Recent instances include, amongst
others, the cleaning up of the De Witt Clinton Park in New York, a blood
donation drive with Morgan Stanley; support of the Leukemia and Lymphoma
Society of Delaware Chapter with AIG.
TCS' involvement in corporate sustainability activities across the globe
includes the initiative with the UN World Food Program's Walk of Life across
Europe, the Downs Syndrome Association in Singapore and Australia and the
Endeavor' initiative in Uruguay for grooming of local entrepreneurs.
TCS' Environment policy and Green procurement policy demonstrate the Company's
commitment towards mitigation of its direct and indirect environmental impacts.
TCS is aggressively working towards zero waste disposal, and is executing
technologies like vermiculture, bio-digestor plants to convert food and garden
waste to manure/cooking gas. Nineteen delivery centres are ISO 14001:2004
certified by TUV NORD and three have cleared the adequacy audit. TCS is
compliant with applicable and voluntarily adopted environment laws. Being an IT
organisation TCS is conscious of its e-waste and ensures environment friendly
disposal.
TCS calculates its carbon footprint and takes steps to mitigate the same. The
Company also has a Green Office 10-point plan. To reduce greenhouse emissions
due to travel by employees to client locations for meetings, TCS promotes the
use of video conferencing. TCS is constantly conducting major environment
sensitisation drives amongst its employees. TCS is committed towards resource
conservation and taking various initiatives to achieve reduction. Rain water
harvesting, sewage treatment plants, etc., are being implemented efficiently.
All new TCS facilities are being designed and executed to be environment
friendly.
TCS is a member of the Per Cent Club of Business in the Community (BitC) by
virtue of its social spends.
TCS has also published its Corporate Sustainability Report 2007 based on GRI 3
Guidelines of the Global Reporting Initiative.
Awards/Recognition:
During the year, the Company received various awards and recognitions,
significant amongst which are the following:
* National Award for Excellence in Corporate Governance - 2007 from the
Institute of Company Secretaries of India.
* Dataquest Best IT Employer for 2007. * Most Admired Knowledge Enterprise
(MAKE) Award 2007. * Most Valued Partner - awarded by Cisco's Worldwide Sales
Processes and Systems IT.
* BEST Award from The American Society for Training and Development, for the
third time.
* Dataquest Best e-Governance Vendor Award. * Silver Band' in UK's BITC
Corporate Responsibility Index. * Three Business Partner Excellence Awards at
IBM Partner World 2007. * SAP Pinnacle Award in the Industry Solution
Go-To-Market category. * Excellence in Education Award from Life Office
Management Association Corporate Citizen of the Year - 2007 from the Rotary
Club, Chennai Securities Strategist Award. * 2007 Eaton Premier Supplier Award
in the Indirect Supplier for Information Technology Services category.
INDUSTRY
STRUCTURE, DEVELOPMENTS AND OUTLOOK:
Industry Overview:
Estimated global technology spend for 2007 (7.3% growth over previous year) was
USD 1.7 trillion. Of this, USD 1.2 trillion (71% of spend) was Information
Technology - Business Process Outsourcing (IT-BPO). In addition to the
technology spend, Research and Development (R&D) and Engineering spend was
estimated for 2007 at USD 800 billion.
Some of the key Industry trends impacting growth in Information Technology
spending are:
1. Trimming of operational costs to remain price competitive,
2. Increasing regulatory compliance requirements,
3. Innovation-led growth using technology to improve time-to-market,
4. Achieving business transformation in an increasingly globalized world,
and
5. Increasing shortage of IT skilled personnel in the developed
economies.
This has resulted in increasing levels of outsourcing and off-shoring to
price-competitive value-for-money IT service providers from India and other
emerging IT powers.
The Service
Offerings:
Currently, the major service offerings the Company has identified and is
focusing on, in order to achieve its growth aspirations are:
(1) IT Solutions and Services: This offering includes Application Development
and Maintenance, Technology Solutions, Migration and Re-engineering,
Performance Management, Package Implementation, Systems Integration, Enterprise
Solutions, Business Intelligence and Assurance (Testing) Services.
The Company provides services in the areas of supply chain management, devising
CRM strategies and deploying content management solutions to integrate
enterprise wide functions with comprehensive solutions.
The Company's SOLAR framework is a Service Oriented architecture framework of
Integration and Information Management Services. The framework helps the
Company to enable the convergence of Enterprise Integration, Business
Intelligence and Content Management Initiatives for its clients, thus driving
the cost of Information Technology lower. This framework also provides the
agility to address the changing business and regulatory requirements of the
customers.
The faster growing segments in the software services space are: (a) Assurance (Testing)
Services (b) Business Intelligence (c) Enterprise Solutions and (d) Technology
Solutions. The Company's strategy is to increase its focus on the faster
growing segments in the mature market space.
(2) Asset based offerings:
The Asset based offerings of the Company are critical for the Company's
non-linear growth. During the year the Company set up TCS Financial Solutions
(TCS FS) Strategic Business Unit and consolidated all the assets acquired by
the Company. TCS FS covers Banking, Capital markets and Insurance domain.
The Company's technology products assist customers to achieve significantly
higher operational efficiency and realize time, cost and energy benefits at
maximum Return on Investment (RoI). Our technology frameworks and products
include:
TCS Data Cleansing Framework TCS Business Rules Engine TCS Experience Based
Knowledge Management TCS Call Management Solution TCS Public Key Infrastructure
Suite TCS Certificate Validation Server TCS File Authentication Solution TCS
eLearning Effectiveness Measurement Solution TCS Code Generator Framework TCS
Saakshi (Time Stamping Solution)TCS Form Authentication Solution TCS eVOLv
Mutlimedia Authoring Solution
The Company has also developed comprehensive products in the healthcare segment.
The Company aims to address the market needs in the healthcare segment.
(3) IT Infrastructure Services:
IT Infrastructure Services (IT IS) offering has enabled the Company to
establish itself as an end-to-end IT service provider. It is a strategic
horizontal business unit of the Company and was formed with the view to provide
a focal point for supporting and providing Infrastructure Services to
customers.
TCS has made significant investments in the ITIS space by setting up delivery
centres across the world to cater to its growing global clientele. The ITIS
horizontal business unit leverages the Company's delivery centres in India,
Hungary, UK, Brazil, Uruguay and China to deliver Infrastructure Services.
Additionally, the ITIS unit has established technology Centres of Excellence
(CoEs) across various platforms and technologies. These CoEs bring enhanced
value in terms of Technical Support, Knowledge Management, Training and
Continuous Innovation for our clients.
The Company works using a three-phased roadmap to help clients better align
their infrastructure with underlying business objectives:
1. Reduce operational cost by maximising offshore leverage and driving resource
optimisation;
2. Enhance operational efficiencies through consolidation and rationalisation
of the infrastructure and applications portfolio;
3. Drive business effectiveness by aligning Service Level Agreements (SLA) with
business goals and ongoing business service management.
The Company is an end-to-end IT Infrastructure Services provider and helps
customers enhance RoI through remote manageability and Service Level Agreements
(SLA) based services, delivered in the Information Technology
Infrastructure Library (ITIL) framework.
(4) Business Process Outsourcing TCS BPO is strategically positioned to provide
transaction processing and knowledge services to its customers. The Company is
uniquely positioned to offer these services due to its strong focus on (1)
industry domains (2) IT and Infrastructure synergy and (3) a strong reputation
in industry leading products and solutions.
The Company offers value added transaction processing services to its customers
in industry verticals like Banking, Insurance, Telecom, Pharma, Travel and
Transportation and Retail. In addition, the Company has also set up CoEs in the
areas of shared services like Finance and Accounting (F&A), Human Resources
Outsourcing (HRO) [in partnership with SAP to provide multi country, multi
jurisdiction payroll processing] and Supply Chain Management solutions by
leveraging leading ERP vendor platforms. In the Knowledge Processing area the
Company is expanding its presence in Asset Management, Market Research,
Customer Analytics and Pharmaco Vigilance.
The Company's strength in process automation and IT transformation has
guaranteed step changes in customer's productivity. This creates additional
revenue generation avenues for the Company as well as increases the end client
satisfaction, due to faster turnaround on client requests.
Customers of the Company stand to benefit from its platform BPO solutions which
will substantially reduce the customer's total cost of ownership of
infrastructure assets and provide a predictable, utility based transactional
model.
(5) Engineering and Industrial Services (EIS):
The end-to-end services offered by EIS are: * Product Engineering, which
includes:
(a) Engineering design (b) Product Lifecycle Management (PLM) solutions (c)
Knowledge based engineering (d) Engineering analysis and (e) Electronics and
embedded hardware and software.
* Plant Design Engineering, which includes front-end design and detail design
of Process Plants. * Plant Automation Services, which include:
(a) Control System Integration (b) Production Optimisation (c) Manufacturing
Execution Systems and (d) Adaptive Manufacturing at the shop floor level for
manufacturing optimisation * Sourcing and Manufacturing Services, which
include: (a) Component Sourcing and (b) Electromechanical Manufacturing
Services. * Enterprise Asset Management Services, which include: (a)
Reliability Centric Maintenance (RCM) Strategy Development (b) Technology
Selection and (c) Technology Deployment.
* Geo Spatial Technologies, which include: (a) GST consulting, technology
selection, deployment and enterprise applications integration (b) Remote
Sensing/Image processing and (c) Data Management.
The services in this SBU are focused on serving the following verticals: (1)
Hi-Tech and Telecom (2) Aerospace (3) Oil & Gas (4) Utilities (5) Industrial
and (6) Automotive (6) Global Consulting Services
Global Consulting positions the Company as a business advisor in order to
develop closer, broad based relationships with clients. It delivers high value
services and innovative business models to the Company's clients and prospects
globally.
Global Consulting capitalises on the Company's collective technology
capabilities and industry insights to efficiently and successfully provide
consulting services to its customers. The Company's focus is to enhance
business value for its clients through a strong integration and alignment of
business and IT.
Global Consulting Practice consists of two service areas to help the Company's
clients envision, plan and achieve transformation. These are: 1) Business
consulting services which help clients envision innovative solutions and
provides advice on how to achieve adoption of these solutions within the
complex client organisations.
2) IT consulting services which ensure that the client's IT strategy is closely
aligned with their business transformation imperative.
Each service area requires an array of competencies to address specific
requirements from people, process and technology perspective. Global Consulting
combines industry knowledge with these competencies to create a custom solution
for each client's needs.
Using the Company's industry insight and technology expertise, Global
Consulting drives integrated end-to-end IT enabled business transformation
services that helps clients to manage current business requirements, while
preparing for future challenges.
The Industry Solutions Units:
The Industry Verticals where the Company has a sizable presence around which
the Company has reorganised its Industry Solutions Unit include:
(1) Banking and Financial Services(2) Insurance(3) Manufacturing(4) Telecom(5)
Retail and Distribution(6) Travel and Hospitality(7) Energy, Resources and
Utilities(8) Life Sciences and Health Care(9) Media and Information
Services(10) Government .
FINANCIAL
PERFORMANCE:
OVERVIEW:
The financial performance of Tata Consultancy Services Limited (TCS Limited) as
per Indian GAAP is discussed hereunder in two parts:
(i) Tata Consultancy Services Limited (Unconsolidated) which excludes the
performance of subsidiaries of TCS Limited.
(ii) Tata Consultancy Services Limited (Consolidated) which includes
performance of subsidiaries of TCS Limited. The Consolidated Financial
Statements bring out comprehensively the performance of the TCS group of
companies and are more relevant for understanding the overall performance of
the TCS group.
The financial statements are prepared in compliance with the Companies Act,
1956 and generally accepted accounting principles in India.
The total income of TCS Limited (Unconsolidated) aggregated Rs.189796.700
Millions in fiscal 2008 as compared to Rs.151565.200 Millions in fiscal 2007,
registering a growth of 25.22%. In fiscal 2008 the Company's (Unconsolidated)
profit before taxes aggregated Rs.50038.600 Millions as compared to
Rs.41706.800 Millions in the previous fiscal 2007 - a growth of 19.98%. In
fiscal 2008, the total income of TCS Limited (Consolidated) aggregated
Rs.233494.500 Millions as compared to Rs.189142.600 Millions in fiscal 2007,
recording a growth of 23.45%. The consolidated profit before taxes aggregated
Rs.58459.500 Millions in fiscal 2008 as compared to Rs.49182.800 Millions in
fiscal 2007 - a growth of 18.86%. For fiscal 2008 TCS Limited declared three
interim dividends of Rs.3 each on the equity shares. A final dividend of Rs.5
per equity share has been recommended.
Plant location:
In view of the nature of the
company business viz, Information Technology (IT) services and IT Enabled
services, the company operates from various offices in India in India and
abroad and does not have any manufacturing plant except that pursuant to the
merger of tata infotech Limited with the company, the company has a
manufacturing facility at 17 – B, Tivim Industrial Estate, Karaswada, Mapusa –
Bardez, Goa.
FIXED ASSETS
·
Freehold Lands
·
Leasehold lands
·
Freehold Buildings
·
Leasehold Buildings
·
Plant and machinery
·
Motors Cars
·
Computer equipment
·
Office equipments
·
Furniture and fixtures
·
Electrical installation
OTHER INFORMATION:
Contingent liabilities:
|
Particulars |
31.03.2008 |
31.03.2007 |
|
|
( Rs. in millions) |
|
|
Claims
against the Company not acknowledged as debt includes |
1308.500 |
3202.100 |
|
Guarantee
given by the company on behalf of subsidiaries |
20918.600 |
19333.000 |
Claims against the Company not
acknowledged as debt includes:
i) Rs.
933.700 millions in respect of claims made by lessors for properties leased
under tenancy agreements. These claims are being contested in the courts by the
Company. The management does not expect these claims to succeed. An amount of
Rs. 118.300 millions has been accrued under other liabilities.
ii)
The Company has provided guarantees aggregating to Rs. 20069.300 millions (GBP
2525.000 millions) to third parties on behalf of its subsidiary Diligenta
Limited.
WEBSITE
DETAILS:
Subject is one of the world's information technology
companies. Through its Global Network Delivery Model™, Innovation Network, and
Solution Accelerators, TCS focuses on helping global organizations address
their business challenges effectively.
Subject continues to invest in new technologies, processes,
and people which can help its customers succeed. From generating novel concepts
through the company Innovation Labs and academic alliances, to drawing on the
expertise of key partners, it keeps clients operating at the very edge of
technological possibility.
Whether subject is envisioning a business advantage,
engineering an IT solution, or executing an outsourcing strategy, it helps its customers
experience certainty in their every day business.
The company reported 2006-07 global revenues of USD 4.3
billion.
LIST
OF EXPORT AWARDS
|
SL.NO. |
BODY |
YEAR |
SUBJECT |
|
1. |
EEPC |
2000-2001 |
For
highest exporter under category of |
|
2. |
EEPC |
2000-2001 |
Top
Exporter's Western region in the category "Project Exporters MER -
Trading House - Non SSI" |
|
3. |
EEPC |
2000-2001 |
All India Trophy for Highest Exporters -
Turnkey Industrial Project - Non-SSI |
|
4. |
EEPC |
1999-2000 |
All
India Trophy for Highest Exporters - Project Exports – Non – SSI |
|
5. |
EEPC |
1999-2000 |
Regional Top Exporters Trophy in recognition
of excellent performance in exports at the Regional Level |
|
6. |
OCCI |
1999-2000 |
Export Award in recognition of Maximum
Foreign Exchange Earned and Repatriated to India from Overseas Construction
Projects |
|
7. |
EEPC |
1998-1999 |
Award
for All India Top Exporters' Trophy in recognition of outstanding
contribution to Exports. |
|
8. |
OCCI |
1998-1999 |
Export Award in recognition of maximum
foreign business attempted. |
|
9. |
EEPC |
1997-1998 |
All India Certificate of Export Excellence
– under Project Exports – Non SSI Panel In recognition of its excellent
export turnover pertaining to Project & Service Exports |
|
10. |
EEPC |
1997-1998 |
Regional Top Exporters Trophy in recognition
of excellent performance in exports at the Regional Level. |
|
11. |
EEPC |
1996-1997 |
All
India Top Exporters’ Shield in recognition of outstanding contribution
to Engineering Exports |
|
12. |
OCCI |
1996-1997 |
Certificate
of Merit in recognition of second best performance in the category of
maximum Turnover in Overseas Construction Projects. |
|
13. |
FIEO |
1996-1997 |
Export Award "Niryat Shree" in
recognition of Highest Export Excellent Performance for Project Exports. |
|
14. |
FAPCCI |
1995-1996 |
Surana Udyog Silver Rolling Trophy for
the Best Export Effort in the State |
|
15. |
EEPC |
1995-1996 |
Award for Export Excellence in
recognition of achieving highest export performance amongst the non-SSI Exporters
in the Panel Project Exports. |
|
16. |
OCCI |
1995-1996 |
Certificate of Merit in recognition of
second best performance in the category of maximum Foreign Exchange and
Repatriated in Overseas Construction Contracts. |
|
17. |
EEPC |
1994-1995 |
Award for Export Excellence in
recognition of achieving highest export performance amongst the non-SSI
Exporters in the Panel Project Exports. |
|
18. |
OCCI |
1994-1995 |
Certificate of Merit in recognition of third
best performance in the category of maximum turnover in Overseas Construction
Projects. |
|
19. |
EEPC |
1984-1985 |
Certificate of Export Excellence in
recognition of achieving highest export performance amongst the non-SSI Exporters
in the Panel Design, Technical & Consultancy Services by Projects Exports
- Consultancy / Technical Services |
|
20. |
Ministry of Commerce, Directorate
General of Foreign Trade |
Certificate of Recognition of a Export House
in accordance with the provisions of the Exim Policy. |
|
PRESS RELEASE:
TCS to
design and implement integrated tax system for Uganda
Engagement leverages TCS
e-governance solution frameworks
Tata Consultancy Services, the leading
IT services, business solutions and outsourcing firm, has won a
transformational engagement from the Uganda Revenue Authority (URA) to design
and install an integrated tax administration system. The new system will manage
all domestic taxes and duties for the URA, including income tax, value-added
tax, withholding tax and other excise duties. It will help the URA increase the
level of tax compliance in the country, broaden the tax base and provide
efficient services to Uganda’s tax payers.
Mumbai, India and Kampala, Uganda, June 24, 2008: Tata
Consultancy Services, the leading IT services, business solutions and
outsourcing firm, has won a transformational engagement from the Uganda Revenue
Authority (URA) to design and install an integrated tax administration system.
The new system will manage all domestic taxes and duties for the URA, including
income tax, value-added tax, withholding tax and other excise duties. It will
help the URA increase the level of tax compliance in the country, broaden the tax
base and provide efficient services to Uganda’s tax payers.
The new system is an integrated solution that will help URA
to scrutinize the tax returns more effectively and improve compliance level by
having a single and integrated view of the tax payer and provide increased
convenience for tax payers. URA has received financial support from DFID of the
United Kingdom, The Kingdom of the Netherlands, The Kingdom of Belgium and
Government of Uganda to fund this project worth approximately $11.5 million.
Under the project, a suite of applications would be
developed for effecting and monitoring key activities of a tax administration
like registration, returns, payments, assessment, tax-payer accounts, audit,
compliance, objections, appeals and investigations. The TCS-developed system
incorporates best international practices, security features on a highly secure
platform accessible only to select users. It will be implemented in phases at
every tax office in Uganda.
“With our strong domain expertise in executing tax
administration systems for various tax authorities across the globe, TCS will
assist Uganda Revenue Authority in business process re-engineering, capacity
building and change management to improvise and optimize the business process’
execution jointly with URA management,” said N Chandrasekaran, Chief Operating
Officer and Executive Director, TCS. “The new integrated system will reduce IT
and operational costs and processing cycle times, while improving fiscal
transparency and financial accountability,” he added.
Part of the project encompasses a citizen portal which would
act as the interface of the URA with its stakeholders and would ensure 24x7
availability. “The citizen portal would bring the much needed transparency in
the tax administration by giving taxpayers online access to all the information
pertaining to tax administration. The taxpayers would be facilitated to submit
applications online, track the application status and make e-payment through
the citizen portal,” said Tanmoy Chakrabarty, Vice President and Head, Global
Government Unit at TCS.
TCS would be also provide a Human Resource Management System
(HRMS), Document Management System (DMS) and Case Tracking System (CTS) as part
of the project scope. HRMS would cover all aspects of HR function through the
lifecycle of an employee. DMS is intended to create a digitized repository of
all the important documents along with an efficient document storage and
retrieval. CTS would create a central repository for managing information
triggered by various events that can originate in the system and from other
sources and channels.
About Tata Consultancy Services
Tata Consultancy Services is an IT services, business
solutions and outsourcing organization that delivers real results to global
businesses, ensuring a level of certainty no other firm can match. TCS offers a
consulting-led, integrated portfolio of IT and IT-enabled services delivered
through its unique Global Network Delivery Model, recognized as the benchmark
of excellence in software development. A part of the Tata Group, India’s
largest industrial conglomerate, TCS has over 111,000 of the world's best
trained IT consultants in 50 countries. The company generated consolidated
revenues of US $5.7 billion for fiscal year ended 31 March 2008 and is listed
on the National Stock Exchange and Bombay Stock Exchange in India.
Innovation from TCS helps Ferrari retain pole position in Formula
One
TCS receives Innovation Award
from Ferrari
Tata Consultancy Services, the leading IT services, business
solutions and outsourcing firm today announced that it received the Innovation
Award from Ferrari for its ability to use technology services to spur
innovation in one of the most competitive and technologically advanced arenas
of automobile engineering. The seven-time F1 World Champion Michael Schumacher
presented the Innovation Award to TCS officials.
Maranello, Italy and Mumbai, India, June 26, 2008: Tata
Consultancy Services, the leading IT services, business solutions and
outsourcing firm today announced that it received the Innovation Award from
Ferrari for its ability to use technology services to spur innovation in one of
the most competitive and technologically advanced arenas of automobile
engineering. Stefano Domenicali, Ferrari Racing Department Director, presented
the Innovation Award to TCS officials.
The citation for the Innovation Award highlights the
innovation provided by team TCS and ability to work closely with the Ferrari in
a model of collaboration and cultural integration. “TCS has won the Innovation
Award for their zeal and proactive attitude, the excellent involvement in the
activities of design and the contribution in the selection of IT technologies
supporting innovation. Tata Consultancy Services (TCS) is an outstanding
example of technological leadership and a model of cultural integration and
exchange”, said Mario Almondo, Operations Director of Scuderia Ferrari.
“This is no ordinary recognition. We are delighted that TCS’
ability to innovate and help Ferrari dominate the Formula One racing has been
recognized by Ferrari,” said S Ramadorai, Chief Executive Officer and Managing
Director, TCS. “The F1 car is the most advanced automobile in the market and
this award is a tribute of the work of our team of engineers who are helping as
a seamless unit with the engineering and technology team from Ferrari,” he
added.
About Tata Consultancy Services
Tata Consultancy Services is an IT services, business
solutions and outsourcing organization that delivers real results to global
businesses, ensuring a level of certainty no other firm can match. TCS offers a
consulting-led, integrated portfolio of IT and IT-enabled services delivered
through its unique Global Network Delivery Model, recognized as the benchmark
of excellence in software development. A part of the Tata Group, India’s
largest industrial conglomerate, TCS has over 111,000 of the world's best
trained IT consultants in 50 countries. The company generated consolidated
revenues of US $5.7 billion for fiscal year ended 31 March 2008 and is listed
on the National Stock Exchange and Bombay Stock Exchange in India.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.42.23 |
|
UK Pound |
1 |
Rs.83.88 |
|
Euro |
1 |
Rs.66.41 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
10 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
--- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
81 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|