BALANCE SHEETS(TATA CONSULTANCY SERVICES) As at March 31, 2004

Crores
SOURCES OF FUNDS :
1.SHAREHOLDERS’ FUND
(a) Share Capital 36.44
(b) Reserves and Surplus 10.64
2.LOAN FUNDS
(a) Secured Loans Nil
(b) Unsecured Loans 375
TOTAL Loans 375
3.DEFERRED TAX LIABILITY (NET) 0.98
4.TOTAL FUNDS EMPLOYED 423.06

APPLICATION OF FUNDS :
5.FIXED ASSETS
(a) Gross Block 226.5
(b) Less :- Accumulated Depreciation 0.95
(c) Net Block 225.55
(d) Capital Work-in-Progress Nil
Total 225.55
6.INVESTMENTS 417.39

7.CURRENT ASSETS, LOANS AND ADVANCES

(a) Unbilled Revenues Nil

(b) Sundry Debtors 0.25
(c) Cash and Bank Balances 2.25
(d) Loans and Advances 9.77
12.27
8.CURRENT LIABILITIES AND PROVISIONS
(a) Current Liabilities 227.22
(b) Provisions 4.93
232.15
9.NET CURRENT ASSETS [ (7) less (8) ] -219.88

10.TOTAL ASSETS (NET) 423.06

As at March 31, 2005 As at March 2006 As at March 2007

48.01 48.93 97.86

3273.04 5949.88 7961.13

111.01 26.52 41.76

9.73 8.98 8.98
120.74 35.5 50.74
64.32 38.88 60.61
3506.11 5683.71 8170.34

1041.09 1695.13 2315.36

132.93 525.35 854.75
908.16 1169.78 1460.61
120.28 280 757.85
1028.44 1449.78 2218.46
1404.42 1963.52 3252.04

130.09 353.91 523.88

1463.45 2326.63 2799.8
120.74 171.17 557.14
600.83 1107.87 1313.39
2315.11 3982.85 5206.78

714.28 1171.9 1639.5

527.58 540.54 905.05
1241.86 1712.44 2544.55
1073.25 2270.41 2662.23

3506.11 5683.71 8170.34

As at March 2008 As at March 2009

197.86 197.86
10806.95 13248.39

9.27 32.63
8.98 7.74
18.25 40
121.38 103.05
11144.44 13589.67

3240.64 4359.24
1300.11 1690.16
1940.53 2669.08
889.74 685.13
2830.27 3354.21
4509.33 5936.03

870.18 817.06
3747.01 3717.73
527.52 1605.26
2166.6 3089.85
7329.57 9247.14

2404.18 3501.13
1187.44 1450.23
3591.62 4951.36
3737.95 4295.78

11144.44 13589.67
Profit & Loss Accounts(TATA CONSULTANCY SERVICES) 2004

INCOME :
1. Consultancy services Nil
2. Software licences Nil
3. Other income 4.29

EXPENDITURE :
4. Employee costs Nil
5. Operation and Other expenses 0.03

PROFIT BEFORE ADDITIONAL INCENTIVE, INTEREST, 4.26

DEPRECIATION, TAXES AND EXCEPTIONAL ITEMS
6. Additional Performance Incentive Nil
7. Interest 0.2
8. Depreciation 0.84

PROFIT BEFORE TAXES AND EXCEPTIONAL ITEMS 3.22

9. PROVISION FOR TAXES
(a) Current tax -1.11
(b) Deferred tax -0.38
(c) Fringe benefit tax Nil
(d) MAT credit entitlement

PROFIT BEFORE EXCEPTIONAL ITEMS 1.73

10. Profit on sale of long-term investment 13.45
11. Tax on transfer of overseas branches Nil
12. Charge on account of Employee Stock Purchase Scheme Nil
NET PROFIT FOR THE YEAR 15.18
 2005 2006 2007 2008

7854.48 10673.22 14407.95 17690.38

173.1 541.64 532.02 843.34
75 67.95 216.55 445.95

1763.83 4000.6 6446.37 6015.19

3784.48 3945.99 4192.63 7498.42

2554.27 3336.22 4517.52 5466.06

102 Nil Nil Nil

10.4 4.49 3.43 3.42
133.22 257.38 343.41 458.78

2308.65 3074.35 4170.68 5003.86

-241 -322.41 -406.84 -792.05

-39.76 -14.82 11.2 -29.98
Nil -20.25 -17.75 -24.65
Nil Nil Nil 351.58

2027.89 2716.87 3757.29 4508.76

Nil Nil Nil Nil
-9.82 Nil Nil Nil
-186.65 Nil Nil Nil
1831.42 2716.87 3757.29 4508.76
 2009

21535.75
868.25
-456.24

7370.09
9013.08

5564.6

Nil
7.44
417.46

5139.69

-799.15
-44.89
-23
423.56

4696.21
Nil
Nil
Nil
4696.21
(ALL figures in Rs. Crores)

Profitability Ratios

Profit Margin 2004 2005 2006 2007 2008 2009

profit after tax 1.73 2027.89 2716.89 3757.29 4508.76 4696.21

Sales 4.29 8102.58 11293.76 15156.52 18979.67 21947.76

Ratio 40.32% 25% 24% 24.80% 23.70% 21.40%

45.00%
40.00%
35.00%
30.00%
25.00%
20.00% Row 9
15.00%
10.00%
5.00%
0.00%
2004 2005 2006 2007 2008 2009
Return on assets 2004 2005 2006 2007 2008 2009

Average 1964.5 4594.91 6927.025 9657 12366 13589

Total Assets
profit after tax 1.73 2027.89 2716.89 3757.29 4508.76 4696.21

Ratio 0.09% 44.13% 39.22% 38.91% 36.46% 34.56%

50.00%
45.00%
40.00%
35.00%
30.00%
25.00% Row 33
20.00%
15.00%
10.00%
5.00%
0.00%
2004 2005 2006 2007 2008 2009
Return on Investments 2004 2005 2006 2007 2008 2009

Average 910 1683 2607 3880 5222 5936

Investments
profit after tax 1.73 2027.89 2716.89 3757.29 4508.76 4696.21

Ratio 0.20% 120% 104% 97% 86% 79%

140.00%
120.00%
100.00%
80.00%
Row 54
60.00%
40.00%
20.00%
0.00%
2004 2005 2006 2007 2008 2009
 20.00%
0.00%
2004 2005 2006 2007 2008 2009

Return On Equity 2004 2005 2006 2007 2008 2009

profit after tax 1.73 2027.89 2716.89 3757.29 4508.76 4696.21

Average Share 1683 4464 6833 9530 12224 13567

holder Equity
Ratio 0% 45% 40% 39% 37% 35%

50%
45%
40%
35%
30%
25% Row 74
20%
15%
10%
5%
0%
2004 2005 2006 2007 2008 2009
 30%
25% Row 74
20%
15%
10%
5%
0%
2004 2005 2006 2007 2008 2009

EPS 2004 2005 2006 2007 2008 2009

EPS 0.33 21.55 27.76 38.39 46.07 47.91

Calculated in
Notebook

60

50

40

30 Row 90
20

10

0
2004 2005 2006 2007 2008 2009
 30 Row 90
20

10

0
2004 2005 2006 2007 2008 2009

Operating Expenses ratio 2004 2005 2006 2007 2008 2009

Sales 4.29 8102.58 11293.76 15156.52 18979.67 21947.76

Operating 0.03 3784 3945 4192 7498 9013
Expenses
Ratio 1% 47% 35% 28% 40% 41%

50%
45%
40%
35%
30%
25% Row 111
20%
15%
10%
5%
0%
2004 2005 2006 2007 2008 2009
 30%
25% Row 111
20%
15%
10%
5%
0%
2004 2005 2006 2007 2008 2009

Return on Capital 2004 2005 2006 2007 2008 2009

Profit before 3.4 2318 3079 4517 4174 5146
Interest, Tax
Total Capital 423 3506 5709 8170 11124 13589
Ratio 0.0080378 0.6611523 0.5393239 0.5528764 0.3752247 0.3786886

0.7

0.6

0.5

0.4
Row 129
0.3

0.2
 0.6

0.5

0.4
Row 129
0.3

0.2

0.1

0
2004 2005 2006 2007 2008 2009

Liquidity Ratios

Current Ratio 2004 2005 2006 2007 2008 2009

Current Assets 12.27 2315.11 3982.85 5206.78 7329.57 9247.14

Current 227.22 714.28 1171.9 1639.5 2404.18 3501.13
Liabilities
Ratio 0.0540005 3.2411799 3.3986262 3.1758341 3.0486777 2.6411873

4
3.5
3
2.5
 4
3.5
3
2.5
2 Row 154
1.5
1
0.5
0
2004 2005 2006 2007 2008 2009

Quick Ratio 2004 2005 2006 2007 2008 2009

Quick Assets 2.5 1589 2498 3359 4276 5323

Current 227 714 1180 1689 2404 3501
Liabilities
Ratio 0.0110132 2.2254902 2.1169492 1.9887507 1.7787022 1.5204227

2.5

1.5
Row 175
1
 2.5

1.5
Row 175
1

0.5

0
2004 2005 2006 2007 2008 2009

ALR 2004 2005 2006 2007 2008 2009

Absolutely 2.25 120.74 171 557 527 1605

Liquid Assets
Current 227 714 1180 1689 2404 3501
Liabilities
Ratio 0.0099119 0.1691036 0.1449153 0.3297809 0.219218 0.4584404

0.5
0.45
0.4
0.35
0.3
0.25 Row 196
0.2
 0.5
0.45
0.4
0.35
0.3
0.25 Row 196
0.2
0.15
0.1
0.05
0
2004 2005 2006 2007 2008 2009

Solvency Ratios

Debt to Equity Ratio 2004 2005 2006 2007 2008 2009

Total Loans 375 120 35 50 18 40

Shareholder's 47 3321 5608 8058 11004 13446
Equity
Ratio >7 0.0361337 0.0062411 0.006205 0.0016358 0.0029749

0.04
0.035
0.03
0.025
 0.04
0.035
0.03
0.025
0.02 Row 217
0.015
0.01
0.005
0
2004 2005 2006 2007 2008 2009

Interest cover 2004 2005 2006 2007 2008 2009

Profit before 3.4 2318 3079 4517 4174 5146

Interest, Tax
Interest 0.2 10.4 4.5 3.43 3.42 7.44

Ratio 17 222.88462 684.22222 1316.9096 1220.4678 691.66667

 1400

1200

1000

800
Row 237
600

400

200

0
2004 2005 2006 2007 2008 2009

Liabilities to Equity Ratio 2004 2005 2006 2007 2008 2009

Liabilities 423.06 3506.11 5683.71 8170.34 11144.44 13589.67

Shareholder's 47 3321 5608 8058 11004 13446
Equity 12.8
Ratio >10 1.0557392 1.0135004 1.0139414 1.0127626 1.010685

1.06

1.05

1.04

1.03

1.02
Row 244
1.01

0.99
 1.05

1.04

1.03

1.02
Row 244
1.01

0.99

0.98
2004 2005 2006 2007 2008 2009

Capital Market Ratios

Price-Earnings Ratio 2004 2005 2006 2007 2008 2009

EPS 0.33 21.55 27.76 38.39 46.07 47.91

Price 1 1 1 1 1 1
3
Ratio Very High 0.0464037 0.0360231 0.0260485 0.0217061 0.0208725

0.05

0.045

0.04

0.035

0.03

0.025
Row 268
 0.05

0.045

0.04

0.035

0.03

0.025
Row 268
0.02

0.015

0.01

0.005

0
2004 2005 2006 2007 2008 2009

Efficiency Ratios

Average turnover 2004 2005 2006 2007 2008 2009

Average 1964.5 4594.91 6927 9657 12366 13589
Total Assets
Sales 4.29 8102.58 11293.76 15156.52 18979.67 21947.76
Ratio 0.22% 176.34% 163.04% 156.95% 153.48% 161.51%

200.00%
180.00%
160.00%
140.00%
120.00%
100.00% Row 297
80.00%
60.00%
40.00%
20.00%
0.00%
2004 2005 2006 2007 2008 2009
For the ratio analysis of TATA CONSULTANCY SERVICES LIMITED, the following points are worth mentioning:

1. We can see from the profitability ratios, that from 2004 to 2009, the profitability is declining steadily, this may be
of competition offered by other players like Infosys, and due to the global recession.

2. TATA CONSULTANCY SERVICES LIMITED was listed publicaly in the year 2004, so we can see that the ratios for 200
abnormal in nature (vastly different than following years.)

3. EPS (Earnings per share) has been increasing steadily, so TCS has been an investor friendly company.

4. The good thing is that debt-equity ratio has declined over the years, lending a safer platform to TCS

5. Interest coverage declined significantly in 2009, indicating after-shocks of the global meltdown.

6. Not many efficiency ratios can be calculated for TCS as it is a service company, and the inventories are very insign
mentioning:

declining steadily, this may be because

can see that the ratios for 2004 are

iendly company.

platform to TCS

meltdown.

the inventories are very insignificant.