Annual

report
analysis Tata consultancy
(2018-19) services

Submitted by:
Submitted to: Aparna(19MBA1017)
Dr. Vikas Tyagi Prakamya Suman
(19MBA1028)
About TCS
CEO: Rajesh Gopinathan (21 Feb 2017–)
Founded: 1 April 1968(51 years ago)
Revenue: 2,090 crores USD (2019)
Headquarters: Mumbai
Parent organization: Tata Group
Founders: Faquir Chand Kohli, Tata Sons, J. R. D.
Tata
• The company has domain expertise in a broad set of
industries, comprising Banking, Financial Services and
Insurance, Retail and CPG, Communication & Media,
Manufacturing, Life Sciences & Healthcare, Energy &
Utilities, Travel & Hospitality, Technology & Services and
others.
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 Our revenue was `146,463 crore, a growth of 19% over the prior
y e a r i n R u p e e t e r m s , a n d 11 . 4 % i n c o n s t a n t c u r r e n c y t e r m s .
C
o
m
p

 Growth is led by UK and Continental Europe which grew 22% and

a
n
y
N
a
m
e 1 7 . 8 % r e s p e c t i v e l y.

 North America, our largest market, accounting for 51% of

r e v e n u e s , g r e w 8 . 3 % . A s i a P a c i f i c g r e w 11 . 8 % a n d o t h e r m a r k e t s –
Latin America, India and Middle East and Africa – collectively
grew 4.3%.

 In terms of actual payouts, the Company returned `29,148 crore to

shareholders in FY 2019, `13,148 crore as dividends, and `16,000
c r o r e t h r o u g h t h e s h a r e b u y b a c k , w h i c h i s 11 0 . 2 % o f t h e f r e e c a s h
f l o w. 3
 Letter to shareholders
Dear Stakeholder,
• I write this letter with a sense of pride about how well your Company performed this
year, not just in financial terms, but also in terms of what we accomplished for
customers, employees, shareholders and communities across the world.

• Your Company crossed two important milestones in FY 2019. Its annual revenue
crossed the $20 billion figure, a 20-fold increase over the last 16 years. It also
became the first Indian company to achieve a market capitalization of $100 billion
in the last decade, and join the list of the Top 100 most valuable companies in the
world.

• On behalf of the Board of Directors of Tata Consultancy Services, I want to thank

you for your continued trust, confidence, and support.

Warm regards,
N Chandrasekaran
Chairman
Financial history and highlights FR

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 Management discussion and analysis FR

 In FY 2019, the global market for software and services is estimated to have grown to
$1.4 trillion. IT Services is estimated to have grown by 3.2% YoY, driven by strong growth
in digital engagements, particularly cloud adoption.
 Business Process Management grew by 4.5% over the prior year, on account of greater
focus on automation, while packaged software grew 7.4% YoY, driven by rapid adoption
of SaaS, and security and privacy solutions.
 TCS has historically grown much faster than the market. In the latest five-year period,
while the market for IT-BPM services expanded by a CAGR of 2% (IT Services CAGR:
1.5%), TCS had a CAGR of 9.2% in USD terms.
 One reason for the outperformance is market share gains on account of superior
capabilities, and higher customer satisfaction. The second reason has been greater
participation in our customers’ growth and transformation initiatives, which represent
the expanding part of their technology spending.
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Auditor’s report FR
• In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid consolidated financial statements give the information
required by the Companies Act, 2013 (‘the Act’) in the manner so required and give
a true and fair view in conformity with the accounting principles generally
accepted in India, of the consolidated state of affairs of the Group as at 31 March
2019, of its consolidated profit and other comprehensive income, consolidated
changes in equity and consolidated cash flows for the year then ended.

• In our opinion, the aforesaid consolidated financial statements comply with the Ind
AS specified under Section 133 of the Act.

For B S R & Co. LLP

Chartered Accountants Mumbai
Firm’s Registration No: 101248W/W-100022 12 April 2019

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Annual Accounts(2018-19)
 Balance sheet as at March 31,2019
(Rs. In crore)
S.no. Particulars March 31, 2019 March 31, 2018 Absolute change % change
EQUITY AND
A). LIABILITIES
1 Shareholders Fund 89,899 85,530 4,369 5.1

2 2,960 2,938 22 0.74

Non-Current Liabilities
3 Current Liabilities 22,084 17,828 4,256.00 23.87

TOTAL 1,14,943 1,06,296 8,647 8.13

B). ASSETS

1 22,812 25,072 -2,260.00 (9.01)

Non-Current Assets
2 Current Assets 92,131 81,224 10,907 13.42

1,14,943 1,06,296 8,647.00 8.13

TOTAL
 % change FR
23.87
25
20
13.42
15
PERCENTAGE

10
5.1
Non current
5 0.74 assets
0 Shareholders Non current Current Current
Fund liabilities liabilities assets
-5
-10 -9.01
PARTICULARS 10
Income statement as at March 31, 2019 FR
(Rs. In crore)
Absolute
S.No. Particulars Mar 31,2019 Mar 31, 2018 change % Change
A). Income 1,50,774 1,26,746 24,028 18.9

B). Expenses 1,09,211 92,654 16,557 17.8

Profit before tax

C). 41,563 34,092 7,471 21.9
(A-B)

D). Tax expenses 10,001 8,212 1,789 21.7

Profit after tax or

E). 31,562 25,880 5,682 21.9
Profit for the year 11
 % CHANGE
25

20 21.9 21.7 21.9

18.9
17.8
Percentage

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10

0 Income Expenses PBT Tax expenses PAT

Particulars
 Cash flow statement as at March 31, 2019
(Rs. In crore)
PARTICULARS Mar 31,2019 Mar 31, 2018 ABSOLUTE CHANGE % CHANGE
Net cash flow generated from
operating activities 28,593 25,067 3,526 14.06
Net cash flow generated from
Investing activities 1,596 2,886 -1,290 (44.69)
Net cash flow generated from
Financing activities -27,897 -26,885 -1,012 (3.76)

Net increase/decrease in cash &

cash equivalent 2,292 1,068 1,224 114.6

Opening balance cash & cash

equivalent 4,883 3,597 1,286 35.7
Closing balance cash & cash
equivalent 7,224 4883 2,341 47.94
Closing balance Cash & Operating
Cash equivalents 14.06 activities
47.94
Investing
44.69 activities
Opening
balance Cash Financing
& Cash
equivalents
35.7 % change 3.76
activity

Net increase in
Cash & Cash
equivalent
114.6

BOARD OF DIRECTORS(FROM LEFT TO RIGHT)
1. O.P. Bhatt(Independent director)
2. Dr. Ron Sommer (Independent director)
3. Don Callahan (Independent director)
4. Rajesh Gopinathan (CEO AND MD)
5. Aarthi Subramanin (Director)
6. N Chandrasekaran(Chairman)
FR
7. Hanne Birgitte Breinbjerg Sorensen
(Independent director)
8. Aman Mehta (Independent director)
9. Dr. Pradeep Kumar Khosla (Independent director)
10. N G Subramanin(COO)
11. Keki M Mistry(Director) 15
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