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Notes to Accounts of Tata Consultancy Services Ltd.

Mar 31, 2015

1) CORPORATE INFORMATION

Tata Consultancy Services Limited (referred to as "TCS Limited" or "the Company") provides consulting-led integrated portfolio of information technology (IT) and IT-enabled services delivered through a network of multiple locations around the globe. The Company''s full services portfolio consists of IT and Assurance Services, Business Intelligence and Performance Management, Business Process Services, Cloud Services, Connected Marketing Solutions, Consulting, Eco-sustainability Services, Engineering and Industrial Services, Enterprise Security and Risk Management, Enterprise Solutions, iON-Small and Medium Businesses, IT Infrastructure Services, Mobility Products and Services and Platform Solutions.

As at March 31, 2015, Tata Sons Limited owned 73.69% of the Company''s equity share capital and has the ability to control its operating and financial policies. The Company''s registered office is in Mumbai and it has 60 subsidiaries across the globe.

2) SHARE CAPITAL

The Authorised, Issued, Subscribed and Fully paid-up share capital comprises of equity shares and redeemable preference shares having a par value of Rs. 1 each as follows:

The Authorised Share Capital was increased to 420,05,00,000 equity shares of Rs. 1 each and 105,02,50,000 redeemable preference shares of Rs. 1 each pursuant to the amalgamation of two wholly-owned subsidiaries, Retail FullServe Limited and Computational Research Laboratories Limited vide Order dated March 22, 2013 and TCS e-Serve Limited vide Order dated September 6, 2013 of the Hon''ble High Court of Judicature at Bombay.

(b) Rights, preferences and restrictions attached to shares Equity shares

The Company has one class of equity shares having a par value of Rs. 1 each. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Preference shares

Preference shares carried a fixed cumulative dividend of 1% per annum and a variable non-cumulative dividend of 1% of the difference between the rate of dividend declared during the year on the equity shares of the Company and the average rate of dividend declared on the equity shares of the Company for three years preceding the year of issue of the redeemable preference shares.

(e) Equity shares allotted as fully paid up (during 5 years preceding March 31, 2015) including equity shares issued pursuant to contract without payment being received in cash 15,06,983 equity shares of Rs. 1 each have been issued to the shareholders of TCS e-Serve Limited in terms of the composite scheme of arrangement ("the Scheme") sanctioned by the High Court of Judicature at Bombay vide their order dated September 6, 2013.

3) UNBILLED REVENUE

Unbilled revenue as at March 31, 2015 amounting to Rs. 2439.36 crores (March 31, 2014: Rs. 2626.08 crores) primarily includes revenue recognised in relation to efforts incurred on turnkey contracts priced on a fixed time, fixed price basis.

4) TRADE RECEIVABLES

Trade receivables (Unsecured) consist of the following:

5) Current tax includes additional provision (net) of Rs. 61.33 crores (March 31, 2014 : additional provision (net) Rs. 467.62 crores) in domestic and certain overseas jurisdictions relating to earlier years. The impact of MAT entitlement of earlier period is Rs. 8.83 crores (March 31, 2014 : Rs. 451.92 crores).

6) AMALGAMATION OF COMPANIES WTI Advanced Technology Limited

a) Nature of business

WTI Advanced Technology Limited is engaged in the business of Information Technology (IT) and Information Technology Engineering Services (ITES). The Company holds 100.00% of the voting power of WTI Advanced Technology Limited.

b) WTI Advanced Technology Limited has been amalgamated with the Company with effect from April 1, 2014 ("the appointed date") in terms of the scheme of amalgamation (Scheme) sanctioned by the High Court of Judicature at Bombay vide their Order dated March 27, 2015. Pursuant thereto all assets, unbilled revenue, debts, outstandings, credits, liabilities, benefits under income tax, service tax, excise, value added tax, sales tax (including deferment of sales tax), benefits for and under Software Technology Parks of India (STPI), duties and obligations of WTI Advanced Technology Limited, have been transferred to and vested in the Company retrospectively with effect from April 1, 2014.

Since WTI Advanced Technology Limited, amalgamated as aforesaid, was wholly owned by the Company, no shares were exchanged to effect the amalgamation.

c) The amalgamation has been accounted for under the ''pooling of interests'' method as prescribed by Accounting Standard 14 specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014. Accordingly, the assets, liabilities and reserves of WTI Advanced Technology Limited as at April 1, 2014 have been taken over at their book values and in the same form.

The difference between the amounts recorded as investments of the Company and the amount of Share Capital of WTI Advanced Technology Limited has been adjusted in the General Reserve.

Accordingly, the amalgamation has resulted in transfer of assets, liabilities and reserves in accordance with the terms of the Scheme at the following summarised values:

(a) Defined contribution plans

The Company makes Provident fund, Superannuation fund and foreign defined contribution fund contributions to defined contribution retirement benefit plans for eligible employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. In respect of Provident fund contributions to trust set up for this purpose, the Company is generally liable for annual contribution and any deficiency in interest cost compared to interest computed based on the rate of interest declared by the Central Government under the Employees'' Provident Fund Scheme, 1952. In addition to such contributions, the Company also recognises potential deficiency in interest, if any, computed as per acturial valuation of interest as an expense in the year it is determined.

As of March 31, 2015, the fair value of the assets of the fund and the accumulated members'' corpus is Rs. 7939.41 crores and Rs. 7419.41 crores respectively. In accordance with an actuarial valuation, there is no deficiency in the interest cost as the present value of the expected future earnings on the fund is greater than the expected amount to be credited to the individual members based on the expected guaranteed rate of interest of 8.75%. The actuarial assumptions include discount rate of 8.00% and an average expected future period of 7.35 years.

The Company recognised Rs. 571.65 crores (March 31, 2014: Rs. 514.91 crores) for provident fund contributions and Rs. 163.47 crores (March 31, 2014: Rs. 136.29 crores) for superannuation contributions in the statement of profit and loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

The Company has contributed Rs. 267.63 crores (March 31,2014: Rs. 177.75 crores) towards foreign defined contribution plans.

(b) Defined benefit plans

The Company makes annual contributions to the Employees'' Group Gratuity-cum-Life Assurance Scheme, a funded defined benefit plan for eligible employees. The scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary for service less than 15 years, three-fourth month''s salary for service of 15 years to 19 years and one month salary for service of 20 years and more, payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.

The present value of the defined benefit obligation and the related current service cost are measured using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date.

The following table sets out funded status of the gratuity plan and the amounts recognised in the Company''s financial statements as at March 31, 2015.

The Company has identified business segments (industry practice) as its primary segment and geographic segments as its secondary segment.

Business segments comprise banking, finance and insurance services, manufacturing, retail and consumer packaged goods, telecom, media and entertainment and others such as energy, resources and utilities, Hi-tech, life science and healthcare, s-Governance, travel, transportation and hospitality, products, etc.

Revenue and expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly identifiable to specific segment have been allocated on the basis of associated revenue of the segment and manpower efforts. All other expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses.

Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as unallocable. Fixed assets that are used interchangeably among segments are not allocated to primary and secondary segments.

Geographical revenue is allocated based on the location of the customer. Geographic segments of the Company are Americas (including Canada and South American countries), Europe, India and Others.

7) RELATED PARTY DISCLOSURES

A) Related parties and their relationship

I) Holding Company

Tata Sons Limited

II)(A) Subsidiaries (Direct holding)

1. CMC Limited

II)(B) Subsidiaries (Indirect holding)

i. CMC Americas Inc.

ii. CMC eBiz Inc.

2. Tata Consultancy Services Sverige AB

3. Tata Consultancy Services Asia Pacific Pte Ltd.

i. Tata Consultancy Services Japan Ltd. (merged with IT Frontier Corporation (a susbsidiary of Mitsubishi Corporation) w.e.f 01.07.2014)

ii. Tata Consultancy Services Malaysia Sdn Bhd

iii. Tata Consultancy Services (China) Co., Ltd.

iv. PT Tata Consultancy Services Indonesia

v. Tata Consultancy Services (Thailand) Limited

vi. Tata Consultancy Services (Philippines) Inc.

vii. Nippon TCS Solution Center Limited

(merged with Tata Consultancy Services Japan Ltd. w.e.f 01.07.2014)

viii. Tata Information Technology (Shanghai) Co. Limited (Amalgamated with Tata Consultancy services (China) Co., Ltd. w.e.f. 05.11.2013)

ix. Tata Consultancy Services Japan, Ltd. (new entity formed w.e.f 1.07.2014 pursuant to the merger of Tata Consultancy Services Japan Ltd. and IT Frontier Corporation)

4. TCS Iberoamerica SA

i. TCS Solution Center S.A.

ii. Tata Consultancy Services Argentina S.A.

iii. Tata Consultancy Services De Mexico S.A., De C.V.

iv. TCS Inversiones Chile Limitada

v. Tata Consultancy Services Do Brasil Ltda

vi. Tata Consultancy Services Chile S.A. vii TATASOLUTION CENTER S.A.

viii. TCS Uruguay S.A.

ix. MGDC S.C.

5. Tata Consultancy Services Netherlands BV

i. Tata Consultancy Services Luxembourg S.A.

ii. Tata Consultancy Services Switzerland Ltd.

iii. Tata Consultancy Services France S.A.S.

iv. TCS Italia SRL

v. Tata Consultancy Services Osterreich GmbH

vi. Tata Consultancy Services Danmark ApS

vii. Tata Consultancy Services De Espana S.A.

viii. Tata Consultancy Services Portugal Unipessoal Limitada

ix. Alti S.A.

x. Planaxis Technologies Inc.

xi. Alti HR S.A.S.

xii. Alti Infrastructures Systemes & Reseaux S.A.S.

xiii. Alti NV

xiv. Tescom (France) Software Systems Testing S.A.R.L.

xv. Alti Switzerland S.A.

xvi. Teamlink

6. TCS FNS Pty Limited

i. TCS Financial Solutions Australia Holdings Pty Limited

ii. TCS Financial Solutions Australia Pty Limited

iii. PT Financial Network Services

iv. TCS Management Pty Ltd. (Liquidated w.e.f. 23.03.2015)

v. TCS Financial Solutions Beijing Co., Ltd.

7. APOnline Limited

8. Tata America International Corporation

i. MS CJV Investments Corporation

9. Tata Consultancy Services Belgium S.A.

10. Tata Consultancy Services Deutschland GmbH

11. Tata Consultancy Services Canada Inc.

12. Diligenta Limited

i. Diligenta 2 Limited

8. WTI Advanced Technology Limited (Amalgamated with Tata Consultancy Services Limited pursuant to the order dated 27.03.2015 of the Hon''ble High Court of Judicature at Bombay. Effective Date: 01.04.2015. Appointed Date: 01.04.2014)

9. C-Edge Technologies Limited

10. MP Online Limited

11. Tata Consultancy Services Morocco SARL AU (liquidated w.e.f. 30.05.2014 vide court order dated 07.08.2014)

12. Tata Consultancy Services (Africa)(PTY) Ltd.

i. Tata Consultancy Services (South Africa) (PTY) Ltd.

13. TCS e-Serve International Limited

i. TCS e-Serve America, Inc.

14. MahaOnline Limited

15. Tata Consultancy Services Qatar S.S.C.

16. Computational Research Laboratories Inc. (liquidated w.e.f. 18.02.2015)

17. TCS Foundation (entity incorporated on 13.03.2015 under Section 8 of the Companies Act, 2013)

III) Fellow Subsidiaries with whom the Company has transactions

- Infiniti Retail Limited

- Panatone Finvest Limited

- Tata AIG General Insurance Company Limited

- Tata AIA Life Insurance Company Limited

- Tata Investment Corporation Limited

- Tata Limited

- Tata Asset Management Limited

- Tata Business Support Services Limited

- Tata Capital Limited

- Tata Housing Development Company Limited

- Tata Consulting Engineers Limited

- Tata Sky Limited

- Tata Realty and Infrastructure Limited

- e-Nxt Financials Limited

- Tata Industries Limited

- Tata International Limited

- Tata Autocomp Systems Limited

- Drive India Enterprise Solutions Limited

- Tata Advanced Systems Limited

- Tata Lockheed Martin Aerostructures Limited (formerly Tata Aerostructures Limited)

- Tata Capital Housing Finance Limited

- TC Travel and Services Limited

- Tata Securities Limited

- Tata Capital Forex Limited

- Tata Capital Financial Services Limited

- Tata Interactive Systems GmbH

- TATA Africa Holdings (Kenya) Limited

- Tata Zambia Limited

- Tata Sikorsky Aerospace Limited (formerly Tara Aerospace Systems Limited)

- Tata Cleantech Capital Limited

- Tata Interactive Systems AG

- Tata Industrial Services Limited

- Tata Uganda Limited

- Tata SIA Airlines Limited

- Tata Africa Holdings (SA) (Proprietary) Limited

- TRIL Infopark Limited (ceased to be an associate and is a subsidiary w.e.f. 23.03.2015)

- Tata Africa Services (Nigeria) Limited

IV) Key Management Personnel

- Mr. N. Chandrasekaran, Chief Executive Officer and Managing Director

- Mr. Rajesh Gopinathan, Chief Financial Officer

- Ms. Aarthi Subramanian, Executive Director (w.e.f. 12.03.2015)

(Rs. crores)

As at As at Particulars March 31, 2015 March 31, 2014

Claims against the Company not acknowledged as debt 40.72 29.57

Income tax demands (See (a) below) 3901.82 3890.20

Indirect tax demands (See (b) below) 61.01 63.27

Guarantees given by the Company on behalf of subsidiaries (See (c) and (d) below) 3310.95 4082.31

a) In respect of income tax demands of Rs. 318.20 crores (March 31, 2014: Rs. 318.20 crores), not included above, the Company is entitled to an indemnification from the seller of TCS e-Serve Limited.

b) In respect of indirect tax demands of Rs. 8.53 crores (March 31, 2014: Rs. 8.53 crores), not included above, the Company is entitled to an indemnification from the seller of TCS e-Serve Limited.

c) The Company has provided guarantees aggregating Rs. 2694.55 crores (GBP 291.30 million) (March 31, 2014: Rs. 3167.02 crores) (GBP 317.20 million) to third parties on behalf of its subsidiary Diligenta Limited. The Company does not expect any outflow of resources in respect of the above.

d) The Company has provided guarantees aggregating Rs. 87.42 crores (USD 13.97 million) (March 31, 2014: Rs. 83.91 crores) (USD 13.97 million) to third parties on behalf of its subsidiary Tata America International Corporation. The Company does not expect any outflow of resources in respect of the above.

18) CAPITAL AND OTHER COMMITMENTS

a) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. 1844.08 crores (March 31, 2014: Rs. 2811.44 crores).

b) The Company has a purchase commitment towards India Innovation Fund for the uncalled amount of balance Rs. 29618.47 per unit of 1000 units aggregating to Rs. 2.96 crores (March 31, 2014: Rs. 3.64 crores).

19) DERIVATIVE FINANCIAL INSTRUMENTS

The Company, in accordance with its risk management policies and procedures, enters into foreign exchange forward, options and future contracts to manage its exposure in foreign exchange rates. The counter party is generally a bank. These contracts are for a period between one day and eight years.

Net gain on derivative instruments of Rs. 150.75 crores recognised in Hedging Reserve as at March 31, 2015, is expected to be transferred to the statement of profit and loss by March 31, 2016.

In addition to the above Cash Flow Hedges, the Company has outstanding foreign exchange forward, options and future contracts with notional amount aggregating Rs. 19949.03 crores (March 31, 2014: Rs. 15774.90 crores) whose fair value showed a gain of Rs. 159.65 crores as at March 31, 2015 (March 31, 2014: gain of Rs. 261.23 crores). Exchange gain of Rs. 1363.87 crores (March 31,2014 : Exchange loss of Rs. 66.60 crores) on foreign exchange forward, options and future contracts for the year ended March 31, 2015 have been recognised in the statement of profit and loss.

As at March 31, 2015, the Company has net foreign currency exposures that are not hedged by derivative instruments or otherwise amounting to Rs. 2884.79 crores (March 31, 2014: Rs. 681.53 crores).

20) Research and development expenditure aggregating Rs. 192.62 crores (Previous year: Rs. 176.31 crores), including capital expenditure was incurred during the year.

21) The Company has revised its policy of providing depreciation on fixed assets effective April 1,2014. Depreciation is now provided on a straight line basis for all assets as against the policy of providing on written down value basis on some assets and straight line basis on others. Further the remaining useful life has also been revised wherever appropriate based on an evaluation. The carrying amount as on April 1, 2014 is depreciated over the revised remaining useful life. As a result of these changes, the depreciation charge for the year ended March 31,2015 is higher by Rs. 131.16 crores and the effect relating to the period prior to April 1,2014 is a net credit of Rs. 528.38 crores (excluding deferred tax of Rs. 129.62 crores) which has been shown as an ''Exceptional Item'' in the statement of profit and loss.

22) At their respective meetings held on October 16, 2014, the Boards of the Company and of its subsidiary, CMC Limited have approved a Scheme of Amalgamation of CMC Limited with the Company. The appointed date for the proposed Scheme is April 1, 2015. The Scheme is subject to sanction of the Hon''ble High Courts and all other statutory approvals as may be required under law.

23) During the year, an amount of Rs. 2326.42 crores has been recognised in the Statement of Profit and Loss in respect of one-time bonus to eligible employees.

24) During the year, the Company has incurred an amount of Rs. 218.42 crores towards Corporate Social Responsibility expenditure.

25) Previous years'' figures have been recast / restated.


Mar 31, 2013

1) CORPORATE INFORMATION

Tata Consultancy Services Limited (referred to as "TCS Limited" or the "Company") provide consulting-led integrated portfolio of information technology (IT) and IT-enabled services delivered through a network of multiple locations around the globe. The Companys full services portfolio consists of Application Development and Maintenance, Business Intelligence, Enterprise Solutions, Assurance, Engineering and Industrial Services, IT Infrastructure Services, Business Process Outsourcing, Consulting and Asset Leveraged Solutions.

As of March 31, 2013, Tata Sons owned 73.75% of the Companys equity share capital and has the ability to control its operating and financial policies. The Companys registered office is in Mumbai and it has 58 subsidiaries across the globe.

(a) Rights, preferences and restrictions attached to shares Equity shares

The Company has one class of equity shares having a par value of Rs. 1 each. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Preference shares

Preference shares would be redeemable at par at the end of six years from the date of allotment i.e. March 28, 2008, but may be redeemed 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% per annum and a variable non-cumulative dividend of 1% of the difference between the rate of dividend declared during the year on the equity shares of the Company and the average rate of dividend declared on the equity shares of the Company for three years preceding the year of issue of the redeemable preference shares.

(b) Shares allotted as fully paid up by way of bonus shares (during 5 years preceding March 31, 2013)

The Company allotted 97,86,10,498 equity shares as fully paid up bonus shares by utilisation of Securities premium reserve on June 18, 2009 pursuant to a shareholders resolution passed by postal ballot on June 12, 2009.

The Company has given an undertaking to the Government of Maharashtra not to divest its shareholding in MahaOnline Limited except to an affiliate. This equity investment is subject to the restriction as per terms of contractual agreement. The restriction is valid as at March 31, 2013.

The Company has given an undertaking to the investors of KOOH Sports Private Limited not to transfer its shareholding prior to the expiry of thirty-six months from the completion date of the investment agreement except with the prior written consent of the other parties to the agreement. The restriction is valid as at March 31, 2013.

Unquoted debentures include subscription to the privately placed unsecured, unlisted redeemable non-convertible debentures issued by Tata Sons Limited in January 2010 and its subsidiary Panatone Finvest Limited in March 2010 for a consideration of Rs. 1000 crores and Rs. 200 crores, respectively. The debentures issued by Tata Sons Limited would be redeemable at par in three equal installments at the end of second, third and fourth year, respectively from the date of allotment. The first two installments of the debentures issued by Tata Sons Limited have been redeemed during the years ended March 31, 2012 and March 31, 2013 respectively. The debentures issued by Panatone Finvest Limited have been renewed for a further period of three years with a revised interest rate of 9.50% during the year ended March 31, 2013.

Tata Consultancy Services Morocco SARL AU, a wholly owned subsidiary, is in the process of being voluntarily liquidated.

Unquoted debentures include subscription to the privately placed unsecured, unlisted redeemable non-convertible debentures issued by Tata Sons Limited in January 2010 and its subsidiary Panatone Finvest Limited in March 2010 for a consideration of Rs. 1000 crores and Rs. 200 crores, respectively. The debentures issued by Tata Sons Limited would be redeemable at par in three equal installments at the end of second, third and fourth year, respectively from the date of allotment. The first two installments of the debentures issued by Tata Sons Limited have been redeemed during the years ended March 31, 2012 and March 31, 2013 respectively. The debentures issued by Panatone Finvest Limited have been renewed for a further period of three years with a revised interest rate of 9.50% during the year ended March 31, 2013.

2) UNBILLED REVENUE

Unbilled revenue as at March 31, 2013 amounting to Rs. 2303.35 crores (March 31, 2012: Rs. 1567.47 crores) primarily comprises of the revenue recognised in relation to efforts incurred on turnkey contracts priced on a fixed time, fixed price basis of Rs. 1509.25 crores (March 31, 2012: Rs. 1208.10 crores).

3) Current tax includes additional provision (net) of Rs. 39.12 crores (March 31, 2012: Write back of provisions (net) and refunds received Rs. 34.99 crores) in domestic and certain overseas jurisdictions relating to earlier years. The impact of MAT entitlement of earlier period is Rs. 128.97 crores (March 31, 2012: Nil).

4) AMALGAMATION OF COMPANIES

a) Nature of business of amalgamating companies:

Retail FullServe Limited is engaged in the business of providing information technology and business process outsourcing services.

Computational Research Laboratories Limited is engaged in the business of conducting research and development relating to high performance computing and allowing usage of computers, including providing consultation services in the field of information technology. On August 16 2012, the Company has acquired 100% equity share capital of Computational Research Laboratories Limited.

b) Retail FullServe Limited and Computational Research Laboratories Limited - wholly owned subsidiaries of Tata Consultancy Services Limited, have been amalgamated with the Company with effect from April 1, 2012 and October 1, 2012 respectively, in terms of the scheme of amalgamation (Scheme) sanctioned by the High Court of Judicature at Bombay vide their Order dated March 22 , 2013. The Scheme came into effect on April 1, 2013 and pursuant thereto all assets and debts, outstandings, credits, liabilities, benefits under income tax, excise, sales tax (including deferment of sales tax), benefits for and under STPI and special economic zone registrations, duties and obligations of the above mentioned subsidiaries, have been transferred to and vested in the Company retrospectively with effect from April 1, 2012 and October 1, 2012 respectively.

Since the subsidiaries, amalgamated as aforesaid, were wholly owned by the Company, no shares were exchanged to effect the amalgamation.

c) The amalgamations stated above have been accounted for under the "pooling of interests" method as prescribed by Accounting Standard (AS-14) notified under Section 211 (3C) of the Companies Act, 1956. Accordingly, the assets, liabilities and reserves of Retail FullServe Limited and Computational Research Laboratories Limited as at April 1, 2012 and October 1, 2012 respectively, have been taken over at their book values. As stipulated in the scheme of amalgamation, all reserves of the above mentioned subsidiaries have been transferred to the General reserve except for balances lying in the statement of profit and loss as on March 31, 2012 and September 30, 2012 respectively, which have been transferred to the surplus in statement of profit and loss of the Company.

The difference between the amounts recorded as investments of the Company and the amount of share capital of Retail FullServe Limited and Computational Research Laboratories Limited have been adjusted in the General reserve.

5) RETIREMENT BENEFIT PLANS

(a) Defined contribution plans

The Company makes Provident Fund and Superannuation Fund contributions to defined contribution retirement benefit plans for eligible employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The contributions as specified under the law are paid to the Provident Fund set up as a trust by the Company. The Company is generally liable for annual contributions and any shortfall in the fund assets based on the government specified minimum rates of return and recognises such contributions and shortfall, if any, as an expense in the year it is incurred.

The Company recognised Rs. 430.24 crores (March 31, 2012: Rs. 359.36 crores) for provident fund contributions and Rs. 106.36 crores (March 31, 2012: Rs. 91.19 crores) for superannuation contributions in the statement of profit and loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

The Company has contributed Rs. 123.86 crores (March 31, 2012: Rs. 89.55 crores) towards foreign defined contribution plans.

(b) Defined benefit plans

The Company makes annual contributions to the Employees Group Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of India, a funded defined benefit plan for eligible employees. The scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary for service less than 15 years, three-fourth months salary for service of 15 years to 19 years and one month salary for service of 20 years and more, payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.

The present value of the defined benefit obligation and the related current service cost were measured using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date.

6) SEGMENT REPORTING

The Company has identified business segments (industry practice) as its primary segment and geographic segments as its secondary segment.

Business segments are primarily financial services comprising customers providing banking, finance and insurance services, manufacturing companies, companies in retail and consumer packaged goods industries, companies in telecommunication, media and entertainment and others such as energy, resources and utilities, Hi-tech industry practice, life science and healthcare, s-Governance, travel, transportation and hospitality, products, etc.

Revenues and expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly identifiable to specific segment have been allocated on the basis of associated revenues of the segment and manpower efforts. All other expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses.

Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as unallocable. Fixed assets that are used interchangeably among segments are not allocated to primary and secondary segments.

Geographical revenues are allocated based on the location of the customer. Geographic segments of the Company are Americas (including Canada and South American countries), Europe, India and Others.

(a) The Company has provided guarantees aggregating Rs. 2910.88 crores (GBP 353.65 million) (March 31, 2012: Rs. 3068.55 crores) (GBP 376.75 million) to third parties on behalf of its subsidiary Diligenta Limited. The Company does not expect any outflow of resources in respect of the above.

(b) The Company has provided guarantees aggregating Rs. 1208.41 crores (USD 222.42 million) (March 31, 2012: Nil ) to third parties on behalf of its subsidiary Tata America International Corporation. The Company does not expect any outflow of resources in respect of the above.

7) CAPITAL AND OTHER COMMITMENTS

a) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. 3328.51 crores (March 31, 2012: Rs. 1682.98 crores).

b) The Company is required to pay to the seller of TCS e-Serve Limited, amounts received by the subsidiary from tax authorities as refund against taxes paid aggregating Rs. 347.85 crores (March 31, 2012: Rs. 321.85 crores), which is to be adjusted to the cost of investment of the subsidiary.

c) The Company has undertaken to provide continued financial support to its subsidiaries APOnline Limited and TCS FNS Pty Limited.

d) The Company has a purchase commitment towards India Innovation Fund for the uncalled amount of balance Rs. 47389.56 per unit of 1000 units aggregating Rs. 4.74 crores (March 31, 2012: Rs. 8.10 crores).

8) DERIVATIVE FINANCIAL INSTRUMENTS

The Company, in accordance with its risk management policies and procedures, enters into foreign currency forward and currency option contracts to manage its exposure in foreign exchange rates. The counter party is generally a bank. These contracts are for a period between one day and eight years.

In addition to the above Cash Flow Hedges, the Company has outstanding foreign exchange forward contracts and currency option contracts with notional amount aggregating to Rs. 10427.63 crores (March 31, 2012: Rs. 8222.75 crores) whose fair value showed a gain of Rs. 51.21 crores as on March 31, 2013 (March 31, 2012: loss of Rs. 92.81 crores). Exchange gain of Rs. 271.95 crores (March 31, 2012: Exchange loss of Rs. 192.83 crores) on foreign exchange forward and currency option contracts for the year ended March 31, 2013 have been recognised in the statement of profit and loss.

As of balance sheet date, the Company has net foreign currency exposures that are not hedged by derivative instruments or otherwise amounting to Rs. 375.25 crores (March 31, 2012: Rs. 338.23 crores)

9) REMITTANCE IN FOREIGN CURRENCIES FOR DIVIDENDS

The Company has remitted Rs. Nil (March 31, 2012: Rs. Nil ) in foreign currencies on account of dividends during the year and does not have information as to the extent to which remittance, if any, in foreign currencies on account of dividends have been made by / on behalf of non-resident shareholders. The particulars of dividends declared and paid to non-resident shareholders for the year ended March 31, 2012 and interim dividends for the year ended March 31, 2013, are as under:

10) Research and development expenditure aggregating Rs. 151.36 crores (Previous year: Rs. 128.98 crores), including capital expenditure, was incurred during the year.

11) The Board of Directors at their meeting held on October 19, 2012 have accorded consent for the merger of TCS e-Serve Limited together with the de merger of TCS e-Serve International Limiteds SEZ undertaking with the Company. The appointed date for the above scheme proposed is April 1, 2013 respectively.

12) On February 22, 2013, the Company entered into an agreement to settle for a sum of Rs. 161.63 crores, a class action suit filed in a United States of America Court relating to payments to employees on deputation. The Court has granted preliminary approval to the settlement agreement. The amount of settlement has been included in Other expenses, vide note no. 26.

13) Previous year figures have been recast / restated.


Mar 31, 2012

1) Corporate information

Tata Consultancy Services Limited (referred to as "TCS Limited" or the "Company") and its subsidiaries provide a wide range of information technology and consultancy services including systems, hardware and software, communications and networking, hardware sizing and capacity planning, software management solutions, technology education services and business process outsourcing. The Companys full services portfolio consists of Application Development and Maintenance, Business Intelligence, Enterprise Solutions, Assurance, Engineering and Industrial Services, IT Infrastructure Services, Business Process Outsourcing, Consulting and Asset Leveraged Solutions.

As of March 31, 2012, Tata Sons owned 73.75% of the Companys equity share capital and has the ability to control its operating and financial policies. The Companys registered office is in Mumbai and it has 58 subsidiaries across the globe.

2) Rights, preferences and restrictions attached to shares Equity shares

The Company has one class of equity shares having a par value of Rs 1 each. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Preference shares

Preference shares would be redeemable at par at the end of six years from the date of allotment i.e. March 28, 2008, but may be redeemed 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% per annum and a variable non-cumulative dividend of 1% of the difference between the rate of dividend declared during the year on the equity shares of the Company and the average rate of dividend declared on the equity shares of the Company for three years preceding the year of issue of the redeemable preference shares.

Market value of quoted investments as classified above as at March 31, 2012 is Rs 1540.94 crores (March 31, 2011: Rs 1612.11 crores).

The Company has given undertakings to the Government of Maharashtra not to divest its shareholding in MahaOnline Limited except to an affiliate. This equity investment is subject to the restriction as per terms of contractual agreement. The restriction is valid as on March 31, 2012.

Unquoted debentures include subscription to the privately placed unsecured, unlisted, redeemable, non - convertible debentures issued by Tata Sons Limited in January 2010 and its subsidiary Panatone Finvest Limited in March 2010 for a consideration of Rs 1000 crores and Rs 200 crores, respectively. The debentures issued by Tata Sons Limited would be redeemable at par in three equal installments at the end of second, third and fourth year, respectively from the date of allotment. The first installment was received on January 21, 2012. The debentures issued by Panatone Finvest Limited would be redeemed at the end of the third year. The amount receivable on redemption within a period of one year from the date of the balance sheet is classified under Current investment and balance as Non - current investment.

3) NON - CURRENT INVESTMENTS

In terms of the shareholders agreement dated March 23, 2006, Phoenix Group Services Limited (formerly known as Pearl Group Services Limited), exercised their put option and sold equity holding of 24% in Diligenta Limited to the Company at a fixed price of Rs 228.00 crores (GBP 30.24 million) in September 2011. Thereby Diligenta Limited became wholly owned subsidiary of the Company.

Tata Consultancy Services Morocco SARL AU, a wholly owned subsidiary, is in the process of being voluntarily liquidated.

On December 20, 2011, the Company has subscribed to 100 percent equity share capital of Tata Consultancy Services Qatar S.S.C.

On January 24, 2012, the Company through its wholly owned subsidiary, Tata Consultancy Services Japan Limited subscribed to 60 percent share capital of Nippon TCS Solution Center Limited.

On March 9, 2012, the Company through its wholly owned subsidiary, Tata Consultancy Services Netherlands BV subscribed to 100 percent share capital of Tata Consultancy Services Osterreich GmbH.

On March 16, 2012, the Company through its wholly owned subsidiary, Tata Consultancy Services Netherlands BV subscribed to 100 percent share capital of Tata Consultancy Services Danmark ApS.

4) Current tax includes write back of provision (net) of Rs 34.99 crores (Previous year: Additional provision (net) Rs 94.50 crores) in domestic and certain overseas jurisdictions relating to earlier years.

5) Retirement benefit plans

a) Defined contribution plans

The Company makes Provident Fund and Superannuation Fund contributions to defined contribution retirement benefit plans for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The contributions as specified under the law are paid to the provident fund set up as a trust by the Company. The Company is generally liable for annual contributions and any shortfall in the fund assets based on the government specified minimum rates of return and recognises such contributions and shortfall, if any, as an expense in the year it is incurred.

The Company recognised Rs 359.36 crores (March 31, 2011: Rs 285.78 crores) for provident fund contributions and Rs 91.19 crores (March 31, 2011: Rs 73.74 crores) for superannuation contributions in the statement of profit and loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

The Company has contributed Rs 89.55 crores (March 31, 2011: Rs 61.39 crores) towards foreign defined contribution plans.

b) Defined benefit plans

The Company makes annual contributions to the Employees Group Gratuity-cum-Life Assurance Scheme of the Life Insurance Corporation of India, a funded defined benefit plan for qualifying employees. The scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary for service less than 15 years, three-fourth months salary for service of 15 years to 19 years and one month salary for service of 20 years and more, payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.

The present value of the defined benefit obligation and the related current service cost were measured using the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date.

6) Segment Reporting

The Company has identified business segments (industry practice) as its primary segment and geographic segments as its secondary segment.

Business segments are primarily financial services comprising customers providing banking, finance and insurance services, manufacturing companies, companies in retail and consumer packaged goods industries, companies in telecommunication, media and entertainment and others such as energy, resources and utilities, Hi-tech industry practice, life science and healthcare, s-Governance, travel, transportation and hospitality, products, etc.

Revenues and expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly identifiable to each reporting segment have been allocated on the basis of associated revenues of the segment and manpower efforts. All other expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses.

Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as unallocable. Fixed assets that are used interchangeably among segments are not allocated to primary and secondary segments.

Geographical revenues are allocated based on the location of the customer. Geographic segments of the Company are Americas (including Canada and South American countries), Europe, India and Others.

7) Contingent liabilities

(Rs crores) As at As at March 31, 2012 March 31, 2011

Claims against the Company not acknowledged as debt 21.49 21.45

Income tax demands 1381.97 602.65

Indirect tax demands 61.44 62.61

Guarantees given by the Company on behalf of subsidiaries (See (b) below) 3389.90 2120.91

a) TCS e-Serve Limited has received demands aggregating Rs 330.07 crores (March 31, 2011: Rs 236.41 crores) in respect of income tax matters in dispute. TCS e-Serve Limited has paid advance taxes aggregating to Rs 321.85 crores (March 31, 2011: Rs 185.13 crores) against disputed amounts for the various assessment years. The Company is entitled to an indemnification from the seller, of the above referred contingent claims on TCS e-Serve Limited, and would be required to refund to the seller, amounts equal to monies received by TCS e-Serve Limited, on all such claims, as an adjustment to the purchase price consideration.

b) The Company has provided guarantees aggregating to Rs 3068.55 crores (GBP 376.75 million) (March 31, 2011: Rs 1978.41 crores) (GBP 275.60 million) to third parties on behalf of its subsidiary Diligenta Limited. The Company does not expect any outflow of resources in respect of the above.

36) Capital and other commitments

a) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs 1682.98 crores (March 31, 2011: Rs 1132.27 crores).

b) The Company has undertaken to provide continued financial support to its subsidiaries APOnline Limited and TCS FNS Pty Limited.

c) The Company has a purchase commitment towards India Innovation Fund for the uncalled amount of balance Rs 80963.86 per unit of 1000 units aggregating to Rs 8.10 crores (March 31, 2011: Rs 9.00 crores).

In addition to the above Cash Flow Hedges, the Company has outstanding foreign exchange forward and currency option contracts with notional amount aggregating Rs 8222.75 crores (March 31, 2011: Rs 4432.67 crores) whose fair value showed a loss of Rs 92.81 crores as on March 31, 2012 (March 31, 2011: gain of Rs 27.45 crores). Exchange loss of Rs 192.83 crores (Previous year: Rs 8.88 crores) on foreign exchange forward and currency option contracts have been recognised in the statement of profit and loss.

As of balance sheet date, the Company has net foreign currency exposures that are not hedged by derivative instruments or otherwise amounting to Rs 338.23 crores (March 31, 2011: Rs 109.03 crores).

8) Remittance in foreign currencies for dividends

The Company has remitted Rs Nil (March 31, 2011: Rs Nil) in foreign currencies on account of dividends during the year and does not have information as to the extent to which remittance, if any, in foreign currencies on account of dividends have been made by / on behalf of non-resident shareholders. The particulars of dividends declared and paid to non-resident shareholders for the year 2010-11 and interim dividends for the year 2011-12, are as under:

9) Research and development expenditure aggregating to Rs 127.16 crores (Previous year: Rs 97.20 crores) was incurred during the year.

10) These financial statements have been prepared in the format prescribed by the Revised Schedule VI to the Companies Act, 1956. Previous years figures have been recast / restated.


Mar 31, 2011

1) The Company has given undertakings to (a) Bank of China Co. Limited, not to transfer its controlling interest in TCS Financial Solutions Australia Pty Limited, a wholly owned subsidiary of TCS FNS Pty Limited and (b) the Government of Maharashtra not to divest its shareholding in MahaOnline Limited except to an affiliate.

2) Retirement benefit plans

a) Defined contribution plans

The Company and its subsidiaries make Provident Fund and Superannuation Fund contributions to defined contribution retirement benefit plans for qualifying employees. Under the schemes, the Company and its subsidiaries are required to contribute a specified percentage of the payroll costs to fund the benefits. The Provident Fund scheme additionally requires the Company and its subsidiaries to guarantee payment of interest at rates notified by the Central Government from time to time, for which shortfall has been provided for as at the Balance Sheet date.

The Group recognised Rs. 320.01 crores (Previous year : Rs. 264.68 crores) for provident fund contributions and Rs. 99.82 crores (Previous year : Rs. 77.21 crores) for superannuation contributions in the profit and loss account. The contributions payable to these plans by the Group are at rates specified in the rules of the schemes.

The Group has contributed Rs. 68.60 crores (Previous year : Rs. 53.01 crores) towards foreign defined contribution plans.

b) Defined benefit plans

In accordance with Indian law, the Company and its subsidiaries in India provide for gratuity, post retirement medical benefit and pension plan, a defined benefit retirement plan covering eligible employees in India. The plan provides for a lump sum payment to vested employees at retirement, death while in employment or on termination of employment in an amount equivalent to 15 to 30 days salary payable for each completed year of service. Vesting occurs upon completion of five years of service. The measurement date used for determining retirement benefits for gratuity is March 31. Certain overseas subsidiaries of the Company also provide for retirement benefit plans in accordance with the local laws.

The present value of the defined benefit obligation and the related current service cost were measured using the Projected Unit Credit Method, with actuarial valuation being carried out at each balance sheet date.

The following table set out the funded status of the retirement benefit plans and the amounts recognised in the financial statements:

3) Unbilled revenue as at March 31, 2011, amounting to Rs. 1348.85 crores (March 31, 2010 : Rs. 1201.14 crores) primarily comprises of the revenue recognised in relation to efforts incurred on turnkey contracts priced on a fixed time, fixed price basis.

4) Research and development expenditure aggregating Rs. 106.13 crores (Previous year : Rs. 84.44 crores) was incurred during the year.

5) Sale of Equipment is net of excise duty of Rs. 0.27 crore (Previous year : Rs. 0.39 crore).

6) Segment Reporting

The Group has identified business segments (industry practice) as its primary segment and geographic segments as its secondary segment.

Business segments are primarily financial services comprising customers providing banking, finance and insurance services, manufacturing companies, companies in retail and consumer packaged goods industries, companies in telecommunication, media and entertainment and others such as energy, resources and utilities, Hi-Tech industry practice, life science and healthcare, s-Governance, travel, transportation and hospitality, products, etc.

Revenues and expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly identifiable to each reporting segment have been allocated on the basis of associated revenues of the segment and manpower efforts. All other expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses.

Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as unallocable. Fixed assets that are used interchangeably among segments are not allocated to primary and secondary segments.

Geographical revenues are allocated based on the location of the customer. Geographic segments of the Group are Americas (including Canada and South American countries), Europe, India and Others.

7) Current tax is net of the effect of additional provision (net) of Rs. 132.76 crores for the year ended March 31, 2011 (Previous year : X 39.27 crores) in domestic and certain overseas jurisdictions relating to earlier years.

8) Related Party Disclosures

A) Related Parties and their Relationship

I) Holding Company

Tata Sons Limited

II) Fellow Subsidiaries with whom the Group has transactions

- Tata Capital Limited

- Tata AIG General Insurance Company Limited

- Tata AIG Life Insurance Company Limited

- Tata Consulting Engineers Limited (formerly TCE Consulting Engineers Limited)

- Tata Housing Development Company Limited

- Tata Limited

- Panatone Finvest Limited

- Tata Business Support Services Limited

- Tata Sky Limited

- Tata Teleservices Limited

- Tata Teleservices (Maharashtra) Limited

- VIOM Networks Limited (Formerly Wireless - TT Info Services Limited)

- Infiniti Retail Limited

- Computational Research Laboratories Limited

- Tata Realty And Infrastructure Limited

- Tata Securities Limited

- e-Nxt Financials Limited

- Tata Investment Corporation Limited

- Nova Integrated Systems Limited

- Tara Aerospace Systems Limited

- Tata Advanced Systems Limited

- TC Travel And Services Limited Tata Capital Pic (UK)

- Tata Aerostructure Limited (w.e.f. 05.04.2010)

- TT Holdings & Services Private Limited (w.e.f. 25.08.2010)

- Tata Industries Limited (w.e.f. 01.09.2010)

- Tata Advanced Materials Limited (w.e.f. 01.09.2010)

- Tata International Limited (w.e.f. 01.09.2010)

- Tata Africa Holdings (SA) (Proprietary) Limited (w.e.f. 01.09.2010)

- TATA Africa Holdings (Kenya) Limited (w.e.f. 01.09.2010)

- Tata Automobile Corporation (SA) (Proprietary) Limited (w.e.f. 01.09.2010)

- Tata Autocomp Systems Limited (w.e.f. 01.09.2010)

- Drive India Enterprise Solutions limited (w.e.f. 01.09.2010)

III) Associate

- National Power Exchange Limited (ceased to be an associate w.e.f. 04.09.2010)

IV) Key Management Personnel

- Mr. N. Chandrasekaran

- Mr. S. Mahalingam

- Mr. Phiroz Vandrevala

9) Contingent Liabilities

(Rs. crores)

Particulars As at As at March 31, 2011 March 31, 2010

Claims against the Group not acknowledged as debt 82.83 114.33

Income Taxes (See note (i) below) 842.04 471.61

Indirect Taxes 144.68 121.89

Guarantees given by the Group (See note (ii) below) 2259.48 1923.19

Unexpired Letters of Credit 1.57 0.15

Other Contingencies 0.94 -

Notes:

i) Income tax matters includes Rs. 236.41 crores (March 31, 2010 : Rs. 212.59 crores) in respect of TCS e-Serve Limited, in which the Company has 96.26 percent stake. As on the acquisition date, i.e. December 31, 2008, TCS e-Serve Limited had net advance taxes aggregating to Rs. 185.13 crores against the disputed amounts for the various assessment years. The Company is entitled to an indemnification of the above referred contingent claims on TCS e-Serve Limited from the seller and would be required to refund to the seller, amounts equal to monies received by TCS e-Serve Limited, on all such claims, as an adjustment to the purchase price consideration.

ii) The Group has provided guarantees aggregating to Rs. 1978.41 crores (GBP 275.60 million) (March 31, 2010 : Rs. 1719.32 crores) (GBP 252.50 million) to third parties on behalf of its subsidiary Diligenta Limited. The Group does not expect any outflow of resources in respect of the above.

iii) The Group has examined the social security and tax aspects of contracts with legal entities which provide services to an overseas subsidiary and, based on legal opinion, concludes that the subsidiary is in compliance with the related statutory requirements.

10) During the year ended March 31, 2011, the Company has received Rs. 27.33 crores (USD 6 million) from the seller of an investment against the release of an indemnification obligation, which has been adjusted against the goodwill arising on consolidation.

11) Commitments

i) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) Rs. 1208.27 crores (March 31, 2010 : Rs. 1172.62 crores).

ii) Phoenix Group Services Limited ("Phoenix") (formerly Pearl Group Services Limited ) has an equity holding of 24% in Diligenta Limited. Under the shareholders agreement dated March 23, 2006, the Company has a call option to purchase all the shares held by Phoenix at fixed price of Rs. 217.08 crores (GBP 30.24 million) at the end of fourth year and Phoenix has a put option to sell the shares to the Company at the same price at the end of the fifth year. The Company has further call option commencing from the sixth year till the end of the eightieth year. As at March 31, 2011, neither of the option has been exercised.

iii) The Company has a purchase commitment towards India Innovation Fund for the uncalled amount of Rs. 90,000 per unit against the balance investment of 1000 units aggregating to Rs. 9.00 crores (March 31, 2010 : Rs. 9.00 crores).

iv) The share purchase agreement for acquisition of Comicrom S.A. (merged with Tata Consultancy Services Chile S.A.) provided for additional contingent consideration payable to the previous owners. A sum of Rs. 4.55 crores (USD 1 million) has been paid by the Company during the year ended March 31, 2011, towards full and final settlement of its dues under the agreement.

12) Derivative Financial Instruments

The Company and its subsidiaries, in accordance with its risk management policies and procedures, enter into foreign currency forward contracts and currency option contracts to manage its exposure in foreign exchange rates. The counter party is generally a bank. These contracts are for a period between one day and eight years.

13) Increase in payables in respect of purchase of fixed assets amounting to Rs. 29.13 crores for the year ended March 31, 2011 (Previous year : Rs. 5.02 crores) have been considered as a non cash transaction.

14) Figures pertaining to the subsidiary companies have been reclassified wherever necessary to bring them in line with the Group financial statements.

15) Previous years figures have been recast / restated wherever necessary.

16) Previous years figures are in italics.

 
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