Ratan Tata says at AGM: TCS did not receive any scrutiny notice from I-T

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 TCS did not receive any scrutiny notice from I-T
TCS Chairman, Ratan Tata stated that the IT company, part of the Tata Group, has not received any scrutiny notice from the Income Tax Department.

There have been media reports that income tax authorities have initiated scrutiny of the biggest software exporter, TCS, on its claim for tax benefits for onshore services.

Without elaborating on the detials Ratan Tata said that TCS has planned a capital expenditure of approximately Rs 2,300-crore for FY 2012.

TCS was ranked 9th in the world in terms of revenue. It stood at rank 4 by market capitalisation. It had 1.9 lakh employees as of March 2011, he added.

Ratan Tata said, "We saw a growth of 32 per cent last year in the banking and financial services ( BFSI )) segment. TCS is looking for further investment opportunities in other markets. The company's focus will be on growing retail and high technology verticals in the current year. We will continue to see current growth level."

There were questions on why the company did not give special dividend, he replied that though it was possible to give out money but liquidity was maintained to capitalize any opportunity that arises to acquire another company. He said, eventuallya special divided will be given out.

Pointing towards the key risks he said, currency volatility, wage inflation and growing competition from other companies such as IBM and Accenture are the major threats.

On attrition he said that there is the levels are better than that of the industry average. According to him at 14% it is the lowest in the industry

"North America is a big market. We are aware that Rs 21,457 crore of our business comes from North America. But we are in the process of doing more business in Europe and other markets. About revenue from large clients, we need big anchor clients," he said.

OneIndia Money

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