tcs anual report analysis
DESCRIPTION
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Submitted by:
Aadyant VashishthAkshay KumarDipti SoniLavi VarshnaeyMohit GehaniVikash Kumar
Financial Accounts Analysis of
Tata Consultancy Services(TCS)
About TCS1. Tata Consultancy Services (TCS), a part of the
Tata group, provides information technology and management consultation services to organizations in more than 53 countries.
2. The company was founded in the year 1968 and is 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.
CONTINUED….. The company disclosed rise of 25.30% in consolidated net profit on y-o-y
basis to Rs 36.58 billion, while total income increased 26.31% y-o-y basis to Rs 168.73 billion for the quarter ended March 2013. In addition, TCS offers software packages for electronic banking, insurance billing, customer relationship management, and hospital management. It caters to finance and banking, insurance, telecommunication, transportation, retail, manufacturing, pharmaceutical, energy and utility industries.
The company generates around 19% of its revenues from the manufacturing industry, and 6% of its revenues from its engineering and industrial services (EIS) business
The company generated consolidated revenues of USD 4.3 billion for the fiscal year ended March 2007. TCS went public in 2004, raising USD 1.17 billion in one of the largest initial public offerings.
Future Prospects
Diligenta, a subsidiary of TCS, has announced that it has entered the UK BPO life assurance market having secured a USD 486 million deal with Pearl, the Peterborough based closed fund group. Diligenta will provide BPO services over an initial 12-year period for Pearl group in processing and administration.
TCS has been recommended enterprise-wide for ISO 9001:2000, BS 7799-2:2002 and BS 15000-1:2002 certifications. This is the largest, enterprise-wide multiple certification of an IT solutions organization to 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.
CONTINUED….TCS has planned a CAPEX of Rs 10,000 million for the current
financial year. It employs more than 60,000 people and will be adding more than 30,000 this year. This will amount to net addition of around 25,000 employees. The company plans to increase its headcount in Hyderabad to 10,000 by 2010 from over 4,200 now.
TCS is planning to open an outsourcing center in Poland and thereby 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 various verticals.
Past Performance By 2008, TCS's e-business activities were
generating over US$500 million in annual revenues.
On 25 August 2004, TCS became a publicly listed company.
In 2005, TCS became the first India-based IT services company to enter the bioinformatics market.
In 2006, TCS designed an ERP system for the Indian Railway Catering and Tourism Corporation.
In 2008, TCS undertook an internal restructuring exercise which aimed to increase the company's agility.
CONTINUED…. 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 1100 crores 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
ACCOUNTINGSTANDARD
PROVISION AVAILABLE UNDER ACCOUNTING STANDARD
Disclosure of Accounting Policies
AS-1 -
Cash Flow Statements AS-3 Small and Medium sized Entities may not disclose their cash flow statement.
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.
Earnings Per Share AS-20 Small and Medium sized Entities may not disclose their diluted earning per share.
RELEVANT SECTIONS USED BY TCS
SECTION DETAIL OF SECTION
303 Registration of Directors
305 Duty of directors etc. to make disclosures
313 Appointment and term of office of alternate directors.
317 Managing director not to be appointed for more than five years at a time
319 Payment to director, etc. for loss of office ,etc. in connection with transfer of undertaking, etc.
337 Removal for Fraud or Breach or Trust
353 Time of Payment Of Remuneration
PROFIT AND LOSS A/C
REVENUE PART OF P&L A/C:
TOTAL REVENUE OF THE COMPANY HAD RISEN BY 24.19%
2012 20130
10000
20000
30000
40000
50000
60000
40789
50656
REVENUE GRAPH
from oper-ation, 96%
other income, 4%
DISTRIBUTION OF REVENUE
from operationother income
WHAT ARE THE
REVENUE FROM OTHER
INCOME?
REVENUE FROM OTHER INCOMES INCLUDE:
EXPENSES PART OF P&L A/C:
TOTAL EXPENSE OF THE COMPANY HAD RISEN BY 27.45%
2012 20130
5000
10000
15000
20000
25000
30000
35000
40000
27423
34953
REVENUE GRAPH
HOW HAD DEPRICIATIO
N BEEN CHARGED?
DETAILS OF DEPRICIATION CHARGED IN P&L A/C
METHOD USED FOR CHARGING DEPRICIATION: THEY ARE USING BOTH METHOD FOR
DEPRICIATION OF FIXED ASSET
1. STRAIGH LINE METHOD
2. WRITTEN DOWN VALUE METHOD
STRAIGHT LINE METHOD OF DEPRICIATION:
UNDER THIS METHOD OF DEPRICIATION DEPRICIATION IS EVENLY DISTRIBUTED THROUGH OUT THE USEFUL LIFE OF FIXED ASSET
WRITTEN DOWN VALUE METHOD:-
UNDER THIS METHOD OF DEPRICIATION AMOUNT OF DEPRICIATIN CHARGED IN STARTING YEARS IS HIGHER THAN THE DEPRICIATION CHARGED IN LATER YEARS.
DEPRICIATION A/c
DETAILS OF PROFIT BEFORE AND AFTER TAX EARNED IN P&L A/C:
PROFIT AFTER TAX OF THE COMPANY HAD RISEN BY 16.50%
PROFIT BEFORE TAX PROFIT AFTER TAX0
2000400060008000
1000012000140001600018000
1336610975
15703
12786
Chart Title
2012 2013
PROFIT BEFORE TAX OF THE COMPANY HAD RISEN BY 17.48%
P & L A/c ANALYSIS 2012-13
•THOUGH THE PERCENTAGE RISE IN EXPENDITURE IS MORE THAN THE PERCENTAGE RISE IN REVENUE BY 3.26% BUT THE COMPANY HAD MADE A RISE IN OVERALL PROFIT OF 16.50% FROM 2012 TO 2013
% RISE IN REVENUE % RISE IN EXPENDITURE % RISE IN PROFIT0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
24.19%27.45%
16.50%
P&L ANALYSIS
Series 1
RISE IN THE VALUE OF SHARE:
PERCENTAGE RISE IN SHARE VALUE IS 16.50%
2012 201350
52
54
56
58
60
62
64
66
55.95
65.22RISE IN VALUE OF SHARES
Series 1
BALANCE SHEET
EQUITY and LIABLITY PART OF BALANCE SHEET :
SHARE CAPITAL AND SHAREHOLDER’S FUND:
PREF-ERENCE SHARE
34%
EQUITY SHARE
66%
%DISTRIBUTION OF SHARES
PREFERENCE SHAREEQUITY SHARE
2011-12 2012-130
5000
10000
15000
20000
25000
30000
35000
24856
30562RISE IN SHAREHOLDER’S FUND
THERE IS 22.95% RISE IN SHAREHOLDER’S FUND FROM 2012 TO 2013
RESERVES AND SURPLUS DISTRIBUTION:
76% NET PROFIT76%
6% SECURITIES PREMIUM RESERVE
6%
0.00800000000000001
0.002
17% GENERAL RESERVE17%
Sales
76% NET PROFIT
6% SECURITIES PREMIUM RESERVE
0.8% FOREIGN CURRENCY TRANSLATION RESERVE
0.2% HEDGING RESERVE A/C
17% GENERAL RESERVE
DISTRIBUTION OF EQUITY AND LIABLITY:
SHARE-HOLDER'S
FUND76%
NON-CURRENT LIABLITY
2%
CURRENT LIABLITY
22%
2012-13
SHAREHOLDER'S FUNDNON-CURRENT LIABLITYCURRENT LIABLITY
SHAREHOLDE
R'S FUND72%
NON-CUR-RENT
LI-ABLITY
2%
CUR-RENT
LI-ABLITY
26%
2011-12
SHAREHOLDER'S FUNDNON-CURRENT LIABLITYCURRENT LIABLITY
ASSETS PART OF BALANCE SHEET:
DISTRIBUTION AND RISE OF ASSET:
FIXED ASSET45%
CURRENT ASSET55%
Sales
FIXED ASSETCURRENT ASSET
THEIR IS 10.06% RISE IN FIXED ASSET AND 42.14% RISE IN CURRENT ASSET. OVERALL INCREASE IN ASSET IS 25.53 %
FIXED ASSET CURRENT ASSET0
5000
10000
15000
20000
25000
1771916538
19503
23508
RISE OF ASSET
2012 2013
CASH FLOW FROM OPERATING EXPENSES:
2012 20130
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
3174
9156CASH FLOW
THERE HAD BEE 188.5 % RISE IN CASH FROM OPERATING ACTIVITY
CASH FLOW FROM INVESTING ACTIVITY:
2012 2013
-4000
-3500
-3000
-2500
-2000
-1500
-1000
-500
0
500
1000
433
-3482
CASH FLOW
THERE HAD BEEN 904% DECREASE IN CASH FLOW FROM INVESTING ACTIVITY.
CASH FLOW FROM FINANCING ACTIVITIES:
2012 20130
500
1000
1500
2000
2500
3000
3500
4000
4500
3280
4054CASH FLOW
THERE HAD BEEN 23.60% RISE IN CASH FROM FINANCIAL ACTIVITIES.
RATIO ANALYSIS
CURRENT RATIO=(CURRNT ASSET/CURRENT LIABLITY)CURRENT RATIO C.A/C.L 2.42
NET WORKING CAPITAL
C.A-C.L 13831
QUICK RATIO LIQUID ASSET/C.L 2.32
DEBT EQUITY RATIO LONG TERM DEBT/(OWNERS CAPITAL-INTANGIBLE ASSET)
0.02
GROSS PROFIT RATIO (PROFIT BEFORE TAX/NET SALES)*100
31%
OPERATING PROFIT RATIO
(REVENUE FROM OPERATION-EXPENSE ON OPERATION)/NET SALES
62%
NET PROFIT RATIO PROFIT AFTER TAX/TOTAL REVENUE
25.24%
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