TCS Annual Report 2019-20

Consolidated Balance Sheet
(` crore) (` crore)
Note As at As at Note As at As at
March 31, 2020 March 31, 2019 March 31, 2020 March 31, 2019
ASSETS Current assets
Non-current assets Inventories 10(e) 5 10

Financial assets
Property, plant and equipment 10(a) 10,941 10,411
Investments 8(a) 26,140 29,091
,%0(ƫ3+.'ġ%*ġ,.+#.!// 906 963
Trade receivables 8(b) 30,532 27,346
Right-of-use assets 9 7,994 -
Unbilled receivables 5,732 5,157
Goodwill 10(b) 1,710 1,700 Cash and cash equivalents 8(c) 8,646 7,224
Other intangible assets 10(c) 283 179 ƫ 0$!.ƫ(*!/ƫ3%0$ƫ*'/ 8(d) 1,020 5,624
Financial assets Loans receivables 8(e) 8,475 8,029
Investments 8(a) 216 239 Other financial assets 8(f) 1,473 1,769
Trade receivables 8(b) 74 95 Income tax assets (net) 8 1,853

Other assets 10(d) 8,206 6,028
Unbilled receivables 324 391
Total current assets 90,237 92,131
Loans receivables 8(e) 29 60
TOTAL ASSETS 120,899 114,943
Other financial assets 8(f) 1,184 738
EQUITY AND LIABILITIES
Income tax assets (net) 2,462 4,017
Equity
Deferred tax assets (net) 17 2,828 2,656 Share capital 8(l) 375 375
Other assets 10(d) 1,711 1,363 Other equity 11 83,751 89,071
Total non-current assets 30,662 22,812 Equity attributable to shareholders of the Company 84,126 89,446
Non-controlling interests 623 453
Total equity 84,749 89,899
TCS Annual Report 2019-20 Consolidated Financial Statements I 175

Consolidated Balance Sheet
(` crore)
Note As at As at
March 31, 2020 March 31, 2019
Liabilities
Non-current liabilities
Financial liabilities
Lease liabilities 6,906 44
Other financial liabilities 8(g) 291 287
Unearned and deferred revenue 697 844
Employee benefit obligations 14 417 330
Deferred tax liabilities (net) 17 779 1,042
Other liabilities 10(g) - 413
Total non-current liabilities 9,090 2,960
Current liabilities
Lease liabilities 1,268 -
Trade payables 6,740 6,292
Other financial liabilities 8(g) 6,100 4,903 NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS
Unearned and deferred revenue 2,915 2,392 As per our report of even date attached For and on behalf of the Board
Provisions 10(f) 293 239 For B S R & Co. LLP N Chandrasekaran Rajesh Gopinathan Keki M Mistry
Employee benefit obligations 14 2,749 2,356 Chartered Accountants Chairman CEO and Managing Director Director
Firm's registration no:
Income tax liabilities(net) 3,712 2,667 101248W/W-100022
Other liabilities 10(g) 3,283 3,235 Yezdi Nagporewalla V Ramakrishnan Rajendra Moholkar
Total current liabilities 27,060 22,084 Partner CFO Company Secretary
Membership No: 049265
TOTAL EQUITY AND LIABILITIES 120,899 114,943
Mumbai, April 16, 2020

Consolidated Statement of Profit and Loss
(` crore) (` crore)
Note Year ended Year ended Note Year ended Year ended
Revenue 12 156,949 146,463 Net change in time value of derivatives designated as (52) 44
Other income 13 4,592 4,311 cash flow hedges
TOTAL INCOME 161,541 150,774 Exchange differences on translation of financial 326 (86)
Expenses statements of foreign operations
Employee benefit expenses 14 85,952 78,246 Income tax on items that will be reclassified (315) (171)
Cost of equipment and software licences 15(a) 1,905 2,270 subsequently to profit or loss
Depreciation and amortisation expense 3,529 2,056 TOTAL OTHER COMPREHENSIVE INCOME / (LOSSES) 464 324
Other expenses 15(b) 26,983 26,441 TOTAL COMPREHENSIVE INCOME FOR THE YEAR 32,911 31,886
Finance costs 16 924 198 Profit for the year attributable to:
TOTAL EXPENSES 119,293 109,211 Shareholders of the Company 32,340 31,472
PROFIT BEFORE TAX 42,248 41,563 Non-controlling interests 107 90
Tax expense 32,447 31,562
Current tax 17 10,378 9,502 Total comprehensive income for the year attributable to:
Deferred tax 17 (577) 499 Shareholders of the Company 32,764 31,787
TOTAL TAX EXPENSE 9,801 10,001 Non-controlling interests 147 99
PROFIT FOR THE YEAR 32,447 31,562 32,911 31,886
OTHER COMPREHENSIVE INCOME (OCI)
Items that will not be reclassified subsequently to Earnings per equity share:- Basic and diluted (`) 18 86.19 83.05
profit or loss Weighted average number of equity shares 375,23,84,706 378,97,49,350
Remeasurement of defined employee benefit plans (429) (51)
Net change in fair values of investments in equity (20) (1) NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS
shares carried at fair value through OCI As per our report of even date attached For and on behalf of the Board
Income tax on items that will not be reclassified 90 11
subsequently to profit or loss For B S R & Co. LLP N Chandrasekaran Rajesh Gopinathan Keki M Mistry
Chartered Accountants Chairman CEO and Managing Director Director
Items that will be reclassified subsequently to profit or
loss 101248W/W-100022
Net change in fair values of investments other than 958 425
equity shares carried at fair value through OCI Yezdi Nagporewalla V Ramakrishnan Rajendra Moholkar
Partner CFO Company Secretary
Net change in intrinsic value of derivatives designated (94) 153 Membership No: 049265
as cash flow hedges

Consolidated Statement of Changes in Equity
A. EQUITY SHARE CAPITAL (` crore)
Balance as at April 1, 2018 Changes in equity share capital during the year* Balance as at March 31, 2019
191 184 375
(` crore)
Balance as at April 1, 2019 Changes in equity share capital during the year Balance as at March 31, 2020
375 - 375
*Refer note 8(l).
B. OTHER EQUITY (` crore)

Reserves and surplus Items of other comprehensive income Equity Non- Total
Capital Capital General Special Retained Statutory Investment Cash flow Foreign attributable to controlling equity
reserve redemption reserve Economic Zone earnings reserve revaluation hedging reserve currency shareholders of interests
reserve re-investment reserve translation the Company
Intrinsic Time
reserve value value reserve
Balance as at April 1, 2018 75 529 1,423 1,578 79,755 258 (84) (2) (69) 1,474 84,937 402 85,339
Profit for the year - - - - 31,472 - - - - - 31,472 90 31,562
Other comprehensive income / (losses) - - - - (41) - 275 136 39 (94) 315 9 324
Total comprehensive income - - - - 31,431 - 275 136 39 (94) 31,787 99 31,886
Dividend (including tax on dividend of `1,342 crore) - - - - (11,424) - - - - - (11,424) (48) (11,472)
15ġ'ƫ+"ƫ!-1%05ƫ/$.!/1 - 8 - - (16,000) - - - - - (15,992) - (15,992)
4,!*/!/ƫ"+.ƫ15ġ'ƫ+"ƫ!-1%05ƫ/$.!/1 - - - - (45) - - - - - (45) - (45)
Issue of bonus shares1 - (106) - - (86) - - - - - (192) - (192)
Realised loss on equity shares carried at fair value through OCI - - - - (1) - 1 - - - - - -
Transfer to Special Economic Zone re-investment reserve - - - 2,750 (2,750) - - - - - - - -
Transfer from Special Economic Zone - - - (3,334) 3,334 - - - - - - - -
re-investment reserve
Transfer to reserves - - (1,396) - 1,306 90 - - - - - - -
Balance as at March 31, 2019 75 431 27 994 85,520 348 192 134 (30) 1,380 89,071 453 89,524

(` crore)
Reserves and surplus Items of other comprehensive income Equity Non- Total
Capital Capital General Special Retained Statutory Investment Cash flow Foreign attributable to controlling equity
reserve redemption Economic Zone earnings reserve revaluation hedging reserve currency shareholders of interests
reserve reserve re-investment reserve Intrinsic Time translation the Company
reserve value value reserve
Balance as at April 1, 2019 75 431 27 994 85,520 348 192 134 (30) 1,380 89,071 453 89,524
Transition impact of Ind AS 116, net of tax2 - - - - (357) - - - - - (357) (2) (359)
Restated balance as at April 1, 2019 75 431 27 994 85,163 348 192 134 (30) 1,380 88,714 451 89,165
Profit for the year - - - - 32,340 - - - - - 32,340 107 32,447
Other comprehensive income / (losses) - - - - (339) - 604 (89) (38) 286 424 40 464
Total comprehensive income - - - - 32,001 - 604 (89) (38) 286 32,764 147 32,911
Dividend (including tax on dividend of `5,742 crore) - - - - (37,634) - - - - - (37,634) (68) (37,702)
Impact on purchase of non-controlling interests - - - - (93) - - - - - (93) 93 -
Transfer to Special Economic Zone re-investment reserve - - - 2,947 (2,947) - - - - - - - -
Transfer from Special Economic Zone - - - (2,347) 2,347 - - - - - - - -
re-investment reserve
Transfer to reserves - - - - (27) 27 - - - - - - -
Balance as at March 31, 2020 75 431 27 1,594 78,810 375 796 45 (68) 1,666 83,751 623 84,374
1
Refer note 8(l).
2
Refer note 9.
Total equity (primarily retained earnings) includes `1,258 crore and `864 crore as at March 31, 2020 and 2019, respectively, pertaining to trusts and TCS Foundation held for specified purposes.

Nature and purpose of reserves other comprehensive income, items included in the reserves accumulated will be reclassified to retained
a. Capital reserve general reserve will not be reclassified subsequently earnings and profit and loss respectively, when such
to statement of profit and loss. instruments are disposed.
The Group recognises profit and loss on purchase,
sale, issue or cancellation of the Group’s own equity d. Special Economic Zone re-investment reserve g. Cash flow hedging reserve
instruments to capital reserve. The Special Economic Zone (SEZ) re-investment The cash flow hedging reserve represents the
b. Capital redemption reserve reserve is created out of the profit of eligible SEZ cumulative effective portion of gains or losses arising
units in terms of the provisions of section 10AA(1) on changes in fair value of designated portion of
As per Companies Act, 2013, capital redemption (ii) of the Income-tax Act, 1961. The reserve will be hedging instruments entered into for cash flow
reserve is created when company purchases its own utilised by the Group for acquiring new assets for the hedges. Such gains or losses will be reclassified to
shares out of free reserves or securities premium. purpose of its business as per the terms of section statement of profit and loss in the period in which
A sum equal to the nominal value of the shares 10AA(2) of Income-tax Act, 1961. the underlying hedged transaction occurs.
so purchased is transferred to capital redemption
reserve. The reserve is utilised in accordance with the e. Statutory reserve h. Foreign currency translation reserve
provisions of section 69 of the Companies Act, 2013. Statutory reserves are created to adhere to The exchange differences arising from the translation
c. General reserve requirements of applicable laws. of financial statements of foreign operations with
f. Investment revaluation reserve functional currency other than Indian Rupee is
The general reserve is a free reserve which is used recognised in other comprehensive income and
from time to time to transfer profits from / to This reserve represents the cumulative gains and is presented within equity in the foreign currency
retained earnings for appropriation purposes. As losses arising on the revaluation of equity and debt translation reserve.
the general reserve is created by a transfer from one instruments on the balance sheet date measured at
component of equity to another and is not an item of fair value through other comprehensive income. The
NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

As per our report of even date attached For and on behalf of the Board
For B S R & Co. LLP N Chandrasekaran Rajesh Gopinathan Keki M Mistry
Chartered Accountants Chairman CEO and Managing Director Director
101248W/W-100022
Yezdi Nagporewalla V Ramakrishnan Rajendra Moholkar
Partner CFO Company Secretary
Membership No: 049265

Consolidated Statement of Cash Flows
(` crore) (` crore)
Year ended Year ended Year ended Year ended
CASH FLOWS FROM OPERATING ACTIVITIES Proceeds from disposal of property, plant and equipment 161 99
Profit for the year 32,447 31,562 Interest received 3,729 2,619
Adjustments to reconcile profit and loss to net cash provided by Dividend received 8 18
operating activities Net cash generated from investing activities 8,565 1,596
Depreciation and amortisation expense 3,529 2,056 CASH FLOWS FROM FINANCING ACTIVITIES
Bad debts and advances written off, allowance for doubtful trade 144 187 15ġ'ƫ+"ƫ!-1%05ƫ/$.!/ƫ - (16,000)
receivables and advances (net) 4,!*/!/ƫ"+.ƫ15ġ'ƫ+"ƫ!-1%05ƫ/$.!/ƫ - (45)
Tax expense 9,801 10,001 Short-term borrowings (net) - (181)
Net gain on lease modification (14) - Dividend paid (including tax on dividend) (37,634) (11,424)
Unrealised foreign exchange (gain) / loss (117) 7 Dividend paid to non-controlling interests (including tax on (68) (48)
Net gain on disposal of property, plant and equipment (46) (84) dividend)
Net gain on investments (214) (427) Purchase of non-controlling interests (227) -
Interest income (3,562) (2,762) Repayment of lease liabilities (1,062) (13)
Dividend income (10) (18) Interest paid (924) (186)
Finance costs 924 198 Net cash used in financing activities (39,915) (27,897)
Operating profit before working capital changes 42,882 40,720 Net change in cash and cash equivalents 1,019 2,292
Net change in Cash and cash equivalents at the beginning of the year 7,224 4,883
Inventories 5 16 Exchange difference on translation of foreign currency cash and 403 49
Trade receivables (3,295) (2,883) cash equivalents
Unbilled receivables (508) 1,286 Cash and cash equivalents at the end of the year (Refer note 8(c)) 8,646 7,224
Loans receivables and other financial assets (2) (499)
Other assets (3,492) (3,687)
Trade payables 446 1,496 *Purchase of investments include `503 crore and `352 crore for the years ended March 31, 2020 and 2019,
Unearned and deferred revenue 375 679 respectively, and proceeds from disposal / redemption of investments include `542 crore and `281 crore
Other financial liabilities 1,208 791 for the years ended March 31, 2020 and 2019, respectively, held by trusts and TCS Foundation held for
Other liabilities and provisions 596 632 specified purposes.
Cash generated from operations 38,215 38,551
Taxes paid (net of refunds) (5,846) (9,958) NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS
Net cash generated from operating activities 32,369 28,593 As per our report of even date attached For and on behalf of the Board
CASH FLOWS FROM INVESTING ACTIVITIES
*'ƫ !,+/%0/ƫ,(! (7,663) (6,029) For B S R & Co. LLP N Chandrasekaran Rajesh Gopinathan Keki M Mistry
Inter-corporate deposits placed (14,905) (13,724) Chartered Accountants Chairman CEO and Managing Director Director
Purchase of investments* (80,002) (96,751) Firm's registration no:
Payment for purchase of property, plant and equipment (2,538) (2,053) 101248W/W-100022
Payment including advances for acquiring right-of-use assets (519) -
Payment for purchase of intangible assets (192) (178) Yezdi Nagporewalla V Ramakrishnan Rajendra Moholkar
Purchase of subsidiary, net of cash of NIL and `16 crore respectively - (50) Partner CFO Company Secretary
.+!! /ƫ".+)ƫ*'ƫ !,+/%0/ƫ 11,965 2,715 Membership No: 049265
Proceeds from inter-corporate deposits 14,432 10,797
Proceeds from disposal / redemption of investments* 84,089 104,133 Mumbai, April 16, 2020

Notes forming part of the Consolidated Financial Statements
1) Corporate information section 133 of the Companies Act, 2013 read with the the currency of the primary economic environment
Companies (Indian Accounting Standards) Rules as in which the entity operates. Foreign currency
Tata Consultancy Services Limited (“the Company”) amended from time to time. transactions are recorded at exchange rates
and its subsidiaries (collectively together with the prevailing on the date of the transaction. Foreign
employee welfare trusts referred to as “the Group”) 3) Basis of preparation currency denominated monetary assets and liabilities
provide IT services, consulting and business solutions are retranslated at the exchange rate prevailing on
These consolidated financial statements have been
and have been partnering with many of the world’s the balance sheet date and exchange gains and
prepared on historical cost basis except for certain
largest businesses in their transformation journeys losses arising on settlement and restatement are
financial instruments and defined benefit plans
for the last fifty years. The Group offers a consulting- recognised in the consolidated statement of profit
which are measured at fair value or amortised cost
led, cognitive powered, integrated portfolio of IT, and loss. Non-monetary assets and liabilities that
at the end of each reporting period. Historical cost is
business and engineering services and solutions. This are measured in terms of historical cost in foreign
generally based on the fair value of the consideration
is delivered through its unique Location-Independent currencies are not retranslated.
given in exchange for goods and services. Fair value
#%(!ƫ !(%2!.5ƫ)+ !(ƫ.!+#*%/! ƫ/ƫƫ!*$).'ƫ+"ƫ
is the price that would be received to sell an asset or The significant accounting policies used in
excellence in software development.
paid to transfer a liability in an orderly transaction preparation of the consolidated financial statements
The Company is a public limited company !03!!*ƫ).'!0ƫ,.0%%,*0/ƫ0ƫ0$!ƫ)!/1.!)!*0ƫ have been discussed in the respective notes.
incorporated and domiciled in India. The address of date. All assets and liabilities have been classified as
its corporate office is TCS House, Raveline Street, current and non-current as per the Group’s normal 4) Basis of consolidation
Fort, Mumbai 400001. As at March 31, 2020, Tata operating cycle. Based on the nature of services
rendered to customers and time elapsed between The Company consolidates all entities which are
Sons Private Limited, the holding company owned
deployment of resources and the realisation in cash controlled by it.
72.02% of the Company’s equity share capital.
and cash equivalents of the consideration for such
The Board of Directors approved the consolidated The Company establishes control when; it has power
services rendered, the Group has considered an
financial statements for the year ended March 31, over the entity, is exposed, or has rights, to variable
operating cycle of 12 months.
returns from its involvement with the entity and has
2020 and authorised for issue on April 16, 2020.
The statement of cash flows have been prepared the ability to affect the entity’s returns by using its
2) Statement of compliance under indirect method. power over relevant activities of the entity.
These consolidated financial statements have been The functional currency of the Company and its Entities controlled by the Company are consolidated
prepared in accordance with the Indian Accounting Indian subsidiaries is the Indian Rupee (`). from the date control commences until the date
Standards (referred to as “Ind AS”) prescribed under The functional currency of foreign subsidiaries is control ceases.

The results of subsidiaries acquired, or sold, during influence or joint control is lost, the cumulative multiple products and services to
the year are consolidated from the effective date of amount of exchange differences related to that a customer. The Group assesses
acquisition and up to the effective date of disposal, foreign operation recognised in OCI is reclassified the products / services promised
as appropriate. to statement of profit and loss as part of the gain or in a contract and identifies distinct
loss on disposal. performance obligations in the
All inter-company transactions, balances, income and contract. Identification of distinct
expenses are eliminated in full on consolidation. 5) Use of estimates and judgements performance obligation involves
judgement to determine the
Changes in the Company’s interests in subsidiaries The preparation of consolidated financial statements
deliverables and the ability of the
that do not result in a loss of control are accounted in conformity with the recognition and measurement
customer to benefit independently
for as equity transactions. The carrying amount of principles of Ind AS requires the management to
from such deliverables.
the Company’s interests and the non-controlling )'!ƫ!/0%)0!/ƫ* ƫ//1),0%+*/ƫ0$0ƫû!0ƫ0$!ƫ
interests are adjusted to reflect the changes in their reported balances of assets and liabilities, disclosures ƫ ƫ đƫ
1 #!)!*0ƫ%/ƫ(/+ƫ.!-1%.! ƫ0+ƫ
relative interests in the subsidiaries. Any difference of contingent liabilities as at the date of the determine the transaction price for the
between the amount by which the non-controlling consolidated financial statements and the reported contract and to ascribe the transaction
interests are adjusted and the fair value of the amounts of income and expenses for the periods price to each distinct performance
consideration paid or received is recognised directly presented. obligation. The transaction price
in equity and attributed to shareholders of the could be either a fixed amount of
Company. Estimates and underlying assumptions are reviewed
customer consideration or variable
on an ongoing basis. Revisions to accounting
consideration with elements such
Assets and liabilities of entities with functional estimates are recognised in the period in which the
as volume discounts, service level
currency other than the functional currency of the estimates are revised and future periods are affected.
credits, performance bonuses, price
Company have been translated using exchange rates
The Group uses the following critical accounting concessions and incentives. The
prevailing on the balance sheet date. Statement of
estimates in preparation of its consolidated financial transaction price is also adjusted
profit and loss of such entities has been translated
statements: for the effects of the time value of
using weighted average exchange rates. Translation
money if the contract includes a
adjustments have been reported as foreign currency
a. Revenue recognition significant financing component. Any
translation reserve in the statement of changes in
consideration payable to the customer
equity. When a foreign operation is disposed off in ƫ ƫ đƫ $!ƫ.+1,Ě/ƫ+*0.0/ƫ3%0$ƫ1/0+)!./ƫ is adjusted to the transaction price,
its entirety or partially such that control, significant could include promises to transfer

unless it is a payment for a distinct ƫ ƫ đƫ !2!*1!ƫ"+.ƫü4! ġ,.%!ƫ+*0.0/ƫ d. Fair value measurement of financial
product or service from the customer. is recognised using percentage-of- instruments
The estimated amount of variable completion method. The Group uses
judgement to estimate the future When the fair value of financial assets and
consideration is adjusted in the
cost-to-completion of the contracts financial liabilities recorded in the balance
transaction price only to the extent that
which is used to determine the degree sheet cannot be measured based on quoted
it is highly probable that a significant
of the completion of the performance ,.%!/ƫ%*ƫ0%2!ƫ).'!0/Čƫ0$!%.ƫ"%.ƫ2(1!ƫ
reversal in the amount of cumulative
obligation. is measured using valuation techniques
revenue recognised will not occur
including the Discounted Cash Flow model.
and is reassessed at the end of each
b. Useful lives of property, plant and equipment $!ƫ%*,10/ƫ0+ƫ0$!/!ƫ)+ !(/ƫ.!ƫ0'!*ƫ".+)ƫ
reporting period. The Group allocates
+/!.2(!ƫ).'!0/ƫ3$!.!ƫ,+//%(!Čƫ10ƫ3$!.!ƫ
the elements of variable considerations The Group reviews the useful life of property, this is not feasible, a degree of judgement
to all the performance obligations of plant and equipment at the end of each is required in establishing fair values.
the contract unless there is observable reporting period. This reassessment may Judgements include considerations of inputs
evidence that they pertain to one or result in change in depreciation expense in /1$ƫ/ƫ(%-1% %05ƫ.%/'Čƫ.! %0ƫ.%/'ƫ* ƫ2+(0%(%05ċƫ
more distinct performance obligations. future periods. Changes in assumptions about these factors
ƫ ƫ đƫ $!ƫ.+1,ƫ!4!.%/!/ƫ&1 #!)!*0ƫ%*ƫ c. Impairment of goodwill could affect the reported fair value of financial
determining whether the performance instruments.
obligation is satisfied at a point in The Group estimates the value-in-use of the
cash generating unit (CGU) based on the e. Provision for income tax and deferred tax
time or over a period of time. The
future cash flows after considering current assets
Group considers indicators such as
how customer consumes benefits as economic conditions and trends, estimated The Group uses estimates and judgements
services are rendered or who controls future operating results and growth rate and based on the relevant rulings in the areas
the asset as it is being created or anticipated future economic and regulatory of allocation of revenue, costs, allowances
existence of enforceable right to conditions. The estimated cash flows are and disallowances which is exercised while
payment for performance to date developed using internal forecasts. The determining the provision for income tax.
and alternate use of such product or discount rate used for the CGU’s represent A deferred tax asset is recognised to the
/!.2%!Čƫ0.*/"!.ƫ+"ƫ/%#*%ü*0ƫ.%/'/ƫ* ƫ the weighted average cost of capital based on extent that it is probable that future taxable
rewards to the customer, acceptance of 0$!ƫ$%/0+.%(ƫ).'!0ƫ.!01.*/ƫ+"ƫ+),.(!ƫ profit will be available against which the
delivery by the customer, etc. companies. deductible temporary differences and tax

losses can be utilised. Accordingly, the Group g. Employee benefits incentive for the Group to exercise the option
exercises its judgement to reassess the to extend the lease, or not to exercise the
carrying amount of deferred tax assets at the The accounting of employee benefit plans option to terminate the lease. The Group
end of each reporting period. in the nature of defined benefit requires the revises the lease term if there is a change in
Group to use assumptions. These assumptions the non-cancellable period of a lease.
f. Provisions and contingent liabilities have been explained under employee benefits
note. The discount rate is generally based on the
The Group estimates the provisions that have incremental borrowing rate specific to the
present obligations as a result of past events h. Leases lease being evaluated or for a portfolio of
and it is probable that outflow of resources leases with similar characteristics.
will be required to settle the obligations. The Group evaluates if an arrangement
These provisions are reviewed at the end of qualifies to be a lease as per the requirements 6) Recent Indian Accounting Standards (Ind AS)
each reporting date and are adjusted to reflect of Ind AS 116. Identification of a lease requires
significant judgment. The Group uses Ministry of Corporate Affairs ("MCA") notifies
the current best estimates.
new standard or amendments to the existing
significant judgement in assessing the lease
The Group uses significant judgement to standards. There is no such notification which
term (including anticipated renewals) and the
disclose contingent liabilities. Contingent would have been applicable from April 1, 2020.
applicable discount rate.
liabilities are disclosed when there is a 7) Business combinations
possible obligation arising from past events, The Group determines the lease term as the
the existence of which will be confirmed only non-cancellable period of a lease, together The Group accounts for its business combinations
by the occurrence or non-occurrence of one with both periods covered by an option to under acquisition method of accounting.
or more uncertain future events not wholly extend the lease if the Group is reasonably Acquisition related costs are recognised in the
within the control of the Group or a present certain to exercise that option; and periods consolidated statement of profit and loss as
obligation that arises from past events where covered by an option to terminate the lease if incurred. The acquiree’s identifiable assets,
it is either not probable that an outflow the Group is reasonably certain not to exercise liabilities and contingent liabilities that meet the
of resources will be required to settle the that option. In assessing whether the Group condition for recognition are recognised at their
obligation or a reliable estimate of the amount is reasonably certain to exercise an option to fair values at the acquisition date.
cannot be made. Contingent assets are neither extend a lease, or not to exercise an option to
terminate a lease, it considers all relevant facts Purchase consideration paid in excess of the
recognised nor disclosed in the financial
and circumstances that create an economic fair value of net assets acquired is recognised
statements.

as goodwill. Where the fair value of identifiable Purchase consideration paid for this acquisition liabilities (other than financial assets and financial
assets and liabilities exceed the cost of has been allocated as follows: liabilities at fair value through profit or loss) are
acquisition, after reassessing the fair values of the added to or deducted from the fair value measured
net assets and contingent liabilities, the excess is (` crore) on initial recognition of financial asset or financial
recognised as capital reserve. Purchase liability.
Consideration
The interest of non-controlling shareholders is The Group derecognises a financial asset only
Cash and cash equivalents 16
initially measured either at fair value or at the when the contractual rights to the cash flows from
Net assets acquired, at fair 8
non-controlling interests’ proportionate share of the asset expire, or when it transfers the financial
the acquiree’s identifiable net assets. The choice value other than cash and cash
equivalents //!0ƫ* ƫ/1/0*0%((5ƫ((ƫ0$!ƫ.%/'/ƫ* ƫ.!3. /ƫ
of measurement basis is made on an acquisition- of ownership of the asset to another entity. The
by-acquisition basis. Subsequent to acquisition, Intangible assets 28
Goodwill 14 Group derecognises financial liabilities when, and
the carrying amount of non-controlling interests
66 only when, the Group’s obligations are discharged,
is the amount of those interests at initial
cancelled or have expired.
recognition plus the non-controlling interests’
share of subsequent changes in equity of Revenues and net profit of the acquiree included in Cash and cash equivalents
subsidiaries. the consolidated financial statements and proforma
revenue and net profit information as at the The Group considers all highly liquid financial
Business combinations arising from transfers beginning of April 1, 2018 have not been presented %*/0.1)!*0/Čƫ3$%$ƫ.!ƫ.! %(5ƫ+*2!.0%(!ƫ%*0+ƫ'*+3*ƫ
of interests in entities that are under common because the amounts are immaterial. amounts of cash that are subject to an insignificant
control are accounted at historical cost. The
.%/'ƫ+"ƫ$*#!ƫ%*ƫ2(1!ƫ* ƫ$2%*#ƫ+.%#%*(ƫ)01.%0%!/ƫ
difference between any consideration given 8) Financial assets, financial liabilities and equity of three months or less from the date of purchase,
and the aggregate historical carrying amounts instruments to be cash equivalents. Cash and cash equivalents
of assets and liabilities of the acquired entity is
+*/%/0ƫ+"ƫ(*!/ƫ3%0$ƫ*'/ƫ3$%$ƫ.!ƫ1*.!/0.%0! ƫ
recorded in shareholders’ equity. Financial assets and liabilities are recognised when
for withdrawal and usage.
the Group becomes a party to the contractual
The Company acquired W12 Studios Limited, an provisions of the instrument. Financial assets
award-winning digital design studio based in Financial assets at amortised cost
and liabilities are initially measured at fair value.
London on October 31, 2018. The Company paid
Transaction costs that are directly attributable to the Financial assets are subsequently measured at
`66 crore (GBP 7 million) to acquire 100% equity
acquisition or issue of financial assets and financial amortised cost if these financial assets are held
shares of W12 Studios Limited.

within a business whose objective is to hold these loss are immediately recognised in statement of provide written principles on the use of such
assets in order to collect contractual cash flows and profit and loss. ü**%(ƫ !.%20%2!/ƫ+*/%/0!*0ƫ3%0$ƫ0$!ƫ.%/'ƫ
the contractual terms of the financial asset give management strategy of the Company and its
rise on specified dates to cash flows that are solely subsidiaries.
payments of principal and interest on the principal Financial liabilities are measured at amortised cost The hedge instruments are designated and
amount outstanding. using the effective interest method. documented as hedges at the inception of the
Financial assets at fair value through other contract. The Group determines the existence
Equity instruments
comprehensive income of an economic relationship between the
An equity instrument is a contract that evidences hedging instrument and hedged item based
Financial assets are measured at fair value through
residual interest in the assets of the company after on the currency, amount and timing of their
other comprehensive income if these financial
deducting all of its liabilities. Equity instruments respective cash flows. The effectiveness
assets are held within a business whose objective is
issued by the Group are recognised at the proceeds +"ƫ$! #!ƫ%*/0.1)!*0/ƫ0+ƫ.! 1!ƫ0$!ƫ.%/'ƫ
achieved by both collecting contractual cash flows on
received net of direct issue cost. associated with the exposure being hedged is
specified dates that are solely payments of principal
assessed and measured at inception and on
and interest on the principal amount outstanding and Derivative accounting an ongoing basis. If the hedged future cash
selling financial assets.
flows are no longer expected to occur, then
ƫ đƫ Instruments in hedging relationship
The Group has made an irrevocable election to the amounts that have been accumulated in
present subsequent changes in the fair value of The Group designates certain foreign other equity are immediately reclassified in
equity investments not held for trading in other exchange forward, currency options and net foreign exchange gains in the statement of
comprehensive income. futures contracts as hedge instruments in profit and loss.
.!/,!0ƫ+"ƫ"+.!%#*ƫ!4$*#!ƫ.%/'/ċƫ$!/!ƫ
Financial assets at fair value through profit or loss The effective portion of change in the fair
hedges are accounted for as cash flow
value of the designated hedging instrument
Financial assets are measured at fair value through hedges.
is recognised in other comprehensive income
profit or loss unless they are measured at amortised and accumulated under the heading cash flow
The Group uses hedging instruments that are
cost or at fair value through other comprehensive hedging reserve.
governed by the policies of the Company and
income on initial recognition. The transaction costs
its subsidiaries which are approved by their
directly attributable to the acquisition of financial The Group separates the intrinsic value and
respective Board of Directors. The policies
assets and liabilities at fair value through profit or time value of an option and designates as

hedging instruments only the change in gain or loss is recognised immediately in the a loss allowance. The Group recognises lifetime
intrinsic value of the option. The change statement of profit and loss when the hedge expected losses for all contract assets and / or all
in fair value of the time value and intrinsic becomes ineffective. trade receivables that do not constitute a financing
value of an option is recognised in other transaction. In determining the allowances for
comprehensive income and accounted as a ƫ đƫ Instruments not in hedging relationship doubtful trade receivables, the Group has used a
separate component of equity. Such amounts practical expedient by computing the expected
The Group enters into the contracts that
are reclassified into the statement of profit credit loss allowance for trade receivables based
are effective as hedges from an economic
and loss when the related hedged items affect +*ƫƫ,.+2%/%+*ƫ)0.%4ċƫ$!ƫ,.+2%/%+*ƫ)0.%4ƫ0'!/ƫ
perspective but they do not qualify for
profit and loss. into account historical credit loss experience and
hedge accounting. The change in the fair
%/ƫ &1/0! ƫ"+.ƫ"+.3. ƫ(++'%*#ƫ%*"+.)0%+*ċƫ$!ƫ
Hedge accounting is discontinued when value of such instrument is recognised in the
expected credit loss allowance is based on the ageing
the hedging instrument expires or is sold, statement of profit and loss.
of the receivables that are due and allowance rates
terminated or no longer qualifies for hedge used in the provision matrix. For all other financial
Impairment of Financial assets (other than at fair
accounting. Any gain or loss recognised assets, expected credit losses are measured at an
value)
in other comprehensive income and amount equal to the 12-month expected credit losses
accumulated in equity till that time remains The Group assesses at each date of balance or at an amount equal to the life time expected credit
and is recognised in statement of profit sheet whether a financial asset or a group of (+//!/ƫ%"ƫ0$!ƫ.! %0ƫ.%/'ƫ+*ƫ0$!ƫü**%(ƫ//!0ƫ$/ƫ
and loss when the forecasted transaction financial assets is impaired. Ind AS 109 requires increased significantly since initial recognition.
ultimately affects the profit and loss. Any expected credit losses to be measured through

(a) Investments Investments – current
Investments consist of the following:
(` crore)
Investments – Non-current
As at As at
(` crore) March 31, 2020 March 31, 2019
As at As at Investments carried at fair value through
March 31, 2020 March 31, 2019 profit or loss
Mutual fund units (quoted) 1,692 3,745
Investments designated at fair value through
Mutual fund units (unquoted) - 63
OCI
Investments carried at fair value through OCI
Fully paid equity shares (unquoted) Government bonds and securities (quoted) 24,290 23,566
Mozido LLC 75 69 Corporate bonds (quoted) 132 1,206
FCM LLC 55 52 Investments carried at amortised cost
Taj Air Limited 19 19 Certificate of deposits (quoted) - 490
Corporate bonds (quoted) 26 21
Philippine Dealing System Holdings 7 6
26,140 29,091
Corporation
Less: Impairment in value of investments (114) (88) Investments – Current includes `95 crore and `121 crore as at March 31, 2020 and
Investments carried at amortised cost 2019, respectively, pertaining to trusts and TCS Foundation held for specified
purposes.
Government bonds and securities (quoted) 164 165
Corporate bonds (quoted) 10 16 Aggregate value of quoted and unquoted investments is as follows:
216 239 (` crore)
As at As at
Investments – Non-current includes `174 crore and `181 crore as at March 31, 2020 March 31, 2020 March 31, 2019
and 2019, respectively, pertaining to trusts held for specified purposes. Aggregate value of quoted investments 26,314 29,209
Aggregate value of unquoted investments 42 121
(net of impairment)
##.!#0!ƫ).'!0ƫ2(1!ƫ+"ƫ-1+0! ƫ 26,336 29,222
investments
Aggregate value of impairment of 114 88
investments

ƫ .'!0ƫ2(1!ƫ+"ƫ-1+0! ƫ%*2!/0)!*0/ƫ..%! ƫ0ƫ)+.0%/! ƫ+/0ƫ%/ƫ/ƫ"+((+3/č The movement in fair value of investments carried / designated at fair value through
OCI is as follows:
(` crore)
As at As at (` crore)
March 31, 2020 March 31, 2019 As at As at
Government bonds and securities 186 177 March 31, 2020 March 31, 2019
Certificate of deposits - 491 Balance at the beginning of the year 192 (84)
Corporate bonds 36 36 Net loss arising on revaluation of financial (20) (1)
assets carried at fair value
(` crore) Net cumulative loss reclassified to retained - 1
In numbers Currency Face Investments As at As at earnings on sale of financial assets carried at
value per March 31, 2020 March 31, 2019 fair value
share Net gain / (loss) arising on revaluation of 972 425
Fully paid investments other than equities carried at fair
equity shares value through other comprehensive income
(unquoted) Deferred tax relating to net gain / (loss) (340) (149)
1,00,00,000 USD 1 Mozido LLC 75 69 arising on revaluation of investments other
15 USD 5,00,000 FCM LLC 55 52 than equities carried at fair value through
1,90,00,000 INR 10 Taj Air Limited 19 19 other comprehensive income
5,00,000 PHP 100 Philippine 7 6 Net cumulative (gain) / loss reclassified (14) -
Dealing to statement of profit and loss on sale of
System investments other than equities carried at fair
Holdings value through other comprehensive income
Corporation Deferred tax relating to net cumulative (gain) 6 -
Less: (114) (88) / loss reclassified to statement of profit
Impairment and loss on sale of investments other than
in value of equities carried at fair value through other
investments comprehensive income
42 58 Balance at the end of the year 796 192

(b) Trade receivables (c) Cash and cash equivalents
Trade receivables (unsecured) consist of the following: Cash and cash equivalents consist of the following:
Trade receivables – Non-current
(` crore)
(` crore) As at As at
March 31, 2020 March 31, 2019
As at As at
(*!/ƫ3%0$ƫ*'/
March 31, 2020 March 31, 2019
In current accounts 8,237 6,463
Trade receivables 656 569
In deposit accounts 405 733
Less: Allowance for doubtful trade receivables (582) (474) Cheques on hand 1 2
Considered good 74 95 Cash on hand 1 19
Remittances in transit 2 7
Trade receivables – Current 8,646 7,224
(` crore)
ƫ (*!/ƫ3%0$ƫ*'/ƫ%*ƫ1..!*0ƫ+1*0/ƫ%*(1 !ƫ`4 crore and `5 crore as at March 31,
As at As at 2020 and 2019, respectively, pertaining to trusts held for specified purposes.
March 31, 2020 March 31, 2019
(d) Other balances with banks
Trade receivables 30,747 27,629 ƫ 0$!.ƫ(*!/ƫ3%0$ƫ*'/ƫ+*/%/0ƫ+"ƫ0$!ƫ"+((+3%*#č
Less: Allowance for doubtful trade receivables (306) (340) (` crore)
Considered good 30,441 27,289 As at As at
March 31, 2020 March 31, 2019
Trade receivables 340 263
.).'! ƫ(*!/ƫ3%0$ƫ*'/ 215 196
Less: Allowance for doubtful trade receivables (249) (206)
$+.0ġ0!.)ƫ*'ƫ !,+/%0/ 805 5,428
Credit impaired 91 57
1,020 5,624
30,532 27,346
ƫ .).'! ƫ(*!/ƫ3%0$ƫ*'/ƫ,.%).%(5ƫ.!(0!/ƫ0+ƫ).#%*ƫ)+*!5ƫ"+.ƫ,1.$/!ƫ+"ƫ
investments, margin money for derivative contracts and unclaimed dividends.

(e) Loans receivables (f) Other financial assets
Loans receivables (unsecured) consist of the following: Other financial assets consist of the following:
Loans receivables – Non-current Other financial assets – Non-current
(` crore) (` crore)
As at As at
As at As at
March 31, 2020 March 31, 2019
March 31, 2020 March 31, 2019
Considered good
Inter-corporate deposits 27 58 Security deposits 824 737
Loans and advances to employees 2 2 .).'! ƫ(*!/ƫ3%0$ƫ*'/ 1 1
29 60 +*#ġ0!.)ƫ*'ƫ !,+/%0/ 348 -
Loans receivables – Current Others 11 -
(` crore) 1,184 738

As at As at Other financial assets – Current
March 31, 2020 March 31, 2019
Considered good (` crore)
Inter-corporate deposits 8,171 7,667 As at As at
Loans and advances to employees 304 362 March 31, 2020 March 31, 2019
Credit impaired Security deposits 170 154
Loans and advances to employees 15 63 Fair value of foreign exchange derivative 425 585
Less: Allowance on loans and advances to (15) (63) assets
employees
Interest receivable 744 834
8,475 8,029
Others 134 196
Inter-corporate deposits placed with financial institutions yield fixed interest rate. 1,473 1,769
Inter-corporate deposits includes `922 crore and `600 crore as at March 31, 2020
Interest receivable includes `43 crore and `46 crore as at March 31, 2020 and 2019,
and 2019, respectively, pertaining to trusts and TCS Foundation held for specified
respectively, pertaining to trusts and TCS Foundation.
purposes.

(g) Other financial liabilities 0ƫ+*/1(0*5ƫ!.2%!/ƫ/%ƫ%üƫ0!ƫ0 ċƫ+"ƫ %0%+*(ƫāĆŌƫ/0'!ƫ%*ƫ%0/ƫ&+%*0ƫ
Other financial liabilities consist of the following: venture with Mitsubishi Corporation in Tata Consultancy Services Japan, Ltd.
Other financial liabilities – Non-current On June 26, 2019, pursuant to exercise of put option by Mitsubishi Corporation,
0ƫ+*/1(0*5ƫ!.2%!/ƫ/%ƫ%üƫ0!ƫ0 ċƫ-1%.! ƫ %0%+*(ƫāĆŌƫ/0'!ƫ"+.ƫ*ƫ
(` crore) amount of `227 crore (JPY 3,500 million).
As at As at
March 31, 2020 March 31, 2019 (h) Financial instruments by category
The carrying value of financial instruments by categories as at March 31, 2020 is as
Capital creditors 3 3
follows:
Others 288 284
(` crore)
291 287
Fair value Fair value Derivative Derivative Amortised Total
through through other instruments instruments cost carrying
Others include advance taxes paid of `226 crore and `226 crore as at March 31, profit or comprehensive in hedging not in hedging value
2020 and 2019, respectively, by the seller of TCS e-Serve Limited (merged with the loss income relationship relationship
Company) which, on refund by the tax authorities, is payable to the seller. Financial assets
Cash and cash - - - - 8,646 8,646
Other financial liabilities – Current equivalents
*'ƫ !,+/%0/ - - - - 1,153 1,153
(` crore) .).'! ƫ(*!/ƫ - - - - 216 216
As at As at 3%0$ƫ*'/
March 31, 2020 March 31, 2019 Investments 1,692 24,464 - - 200 26,356
Accrued payroll 3,907 3,203 Trade receivables - - - - 30,606 30,606
Unbilled receivables - - - - 6,056 6,056
Current maturities of finance lease obligations - 18
Loans receivables - - - - 8,504 8,504
Unclaimed dividends 53 41 Other financial assets - - 146 279 1,883 2,308
Fair value of foreign exchange derivative 693 60 Total 1,692 24,464 146 279 57,264 83,845
liabilities Financial liabilities
Capital creditors 502 303 Trade payables - - - - 6,740 6,740
Liabilities towards customer contracts 807 895 Lease liabilities - - - - 8,174 8,174
Other financial - - 34 659 5,698 6,391
Others 138 383 liabilities
6,100 4,903 Total - - 34 659 20,612 21,305
In the previous year, ‘Others’ include a liability accrued towards exercise of put / call Loans receivables include inter-corporate deposits of `8,198 crore, with original
option for acquisition by maturity period within 36 months.

The carrying value of financial instruments by categories as at March 31, 2019 is as (i) Fair value hierarchy
follows: The fair value hierarchy is based on inputs to valuation techniques that are used to
(` crore) measure fair value that are either observable or unobservable and consist of the
Fair value Fair value Derivative Derivative Amortised Total following three levels:
through through other instruments instruments cost carrying ƫ đƫ !2!(ƫāƫģƫ *,10/ƫ.!ƫ-1+0! ƫ,.%!/ƫĨ1* &1/0! ĩƫ%*ƫ0%2!ƫ).'!0/ƫ"+.ƫ% !*0%(ƫ
profit or comprehensive in hedging not in hedging value
assets or liabilities.
loss income relationship relationship
Financial assets ƫ đƫ !2!(ƫĂƫģƫ *,10/ƫ.!ƫ+0$!.ƫ0$*ƫ-1+0! ƫ,.%!/ƫ%*(1 ! ƫ3%0$%*ƫ!2!(ƫāƫ0$0ƫ.!ƫ
Cash and cash - - - - 7,224 7,224 observable for the asset or liability, either directly (i.e. as prices) or indirectly
equivalents (i.e. derived from prices).
*'ƫ !,+/%0/ - - - - 5,428 5,428 ƫ đƫ !2!(ƫăƫģƫ *,10/ƫ.!ƫ*+0ƫ/! ƫ+*ƫ+/!.2(!ƫ).'!0ƫ 0ƫĨ1*+/!.2(!ƫ
.).'! ƫ(*!/ƫ - - - - 197 197
inputs). Fair values are determined in whole or in part using a valuation model
3%0$ƫ*'/
Investments 3,808 24,830 - - 692 29,330 based on assumptions that are neither supported by prices from observable
Trade receivables - - - - 27,441 27,441 1..!*0ƫ).'!0ƫ0.*/0%+*/ƫ%*ƫ0$!ƫ/)!ƫ%*/0.1)!*0ƫ*+.ƫ.!ƫ0$!5ƫ/! ƫ+*ƫ
Unbilled receivables - - - - 5,548 5,548 2%((!ƫ).'!0ƫ 0ċ
Loans receivables - - - - 8,089 8,089 The cost of unquoted investments included in Level 3 of fair value hierarchy
Other financial assets - - 237 348 1,921 2,506 approximate their fair value because there is a wide range of possible fair value
Total 3,808 24,830 237 348 56,540 85,763 measurements and the cost represents estimate of fair value within that range.
Trade payables - - - - 6,292 6,292 The following table summarises financial assets and liabilities measured at fair value
Lease liabilities - - - - 44 44 on a recurring basis and financial assets that are not measured at fair value on a
Other financial 218 - - 60 4,912 5,190 recurring basis (but fair value disclosures are required):
liabilities (` crore)
Total 218 - - 60 11,248 11,526
As at March 31, 2020 Level 1 Level 2 Level 3 Total
Loans receivables include inter-corporate deposits of `7,725 crore, with original Financial assets
maturity period within 50 months. Mutual fund units 1,692 - - 1,692
Equity shares - - 42 42
Carrying amounts of cash and cash equivalents, trade receivables, unbilled Government bonds and securities 24,476 - - 24,476
receivables, loans receivables and trade payables as at March 31, 2020 and 2019, Corporate bonds 168 - - 168
approximate the fair value. Difference between carrying amounts and fair values Derivative financial assets - 425 - 425
+"ƫ*'ƫ !,+/%0/Čƫ!.).'! ƫ(*!/ƫ3%0$ƫ*'/Čƫ+0$!.ƫü**%(ƫ//!0/ƫ* ƫ+0$!.ƫ Total 26,336 425 42 26,803
financial liabilities subsequently measured at amortised cost is not significant in each Financial liabilities
of the years presented. Fair value measurement of lease liabilities is not required. Derivative financial liabilities - 693 - 693
Fair value of investments carried at amortised cost is `222 crore and `704 crore as at Total - 693 - 693
March 31, 2020 and 2019, respectively.
(` crore) Reconciliation of Level 3 fair value measurement of financial liabilties is as follows:
As at March 31, 2019 Level 1 Level 2 Level 3 Total
(` crore)
Financial assets
Year ended Year ended
Mutual fund units 3,745 63 - 3,808
March 31, 2020 March 31, 2019
Equity shares - - 58 58
Government bonds and securities 23,743 - - 23,743 Balance at the beginning of the year 218 203
Certificate of deposits 491 - - 491 Additions during the year - 13
Corporate bonds 1,243 - - 1,243 Repayment during the year (227) -
Derivative financial assets - 585 - 585 Translation exchange difference 9 2
Total 29,222 648 58 29,928
Balance at the end of the year - 218
Derivative financial liabilities - 60 - 60
(j) Derivative financial instruments and hedging activity
Other financial liabilities - - 218 218
Total - 60 218 278 The Group’s revenue is denominated in various foreign currencies. Given the nature
of the business, a large portion of the costs are denominated in Indian Rupee. This
Reconciliation of Level 3 fair value measurement of financial assets is as follows: exposes the Group to currency fluctuations.
ƫ $!ƫ+. ƫ+"ƫ%.!0+./ƫ$2!ƫ+*/0%010! ƫƫ%/'ƫ *#!)!*0ƫ+))%00!!ƫĨ ĩƫ0+ƫ

(` crore)
".)!Čƫ%),(!)!*0ƫ* ƫ)+*%0+.ƫ0$!ƫ.%/'ƫ)*#!)!*0ƫ,(*ƫ+"ƫ0$!ƫ.+1,ƫ3$%$ƫ%*0!.ġ
Year ended Year ended (%ƫ+2!./ƫ.%/'/ƫ.%/%*#ƫ+10ƫ+"ƫ!4,+/1.!ƫ0+ƫ"+.!%#*ƫ1..!*5ƫý1010%+*/ċƫ* !.ƫ0$!ƫ
March 31, 2020 March 31, 2019 #1% *!ƫ* ƫ".)!3+.'ƫ,.+2% ! ƫ5ƫ0$!ƫ Čƫ0$!ƫ.+1,ƫ1/!/ƫ2.%+1/ƫ !.%20%2!ƫ
Balance at the beginning of the year 58 58 instruments such as foreign exchange forward, currency options and futures
Disposals during the year - (3) +*0.0/ƫ%*ƫ3$%$ƫ0$!ƫ+1*0!.ƫ,.05ƫ%/ƫ#!*!.((5ƫƫ*'ċ
Impairment in value of investments (20) -

Translation exchange difference 4 3
Balance at the end of the year 42 58

The following are outstanding currency options contracts, which have been The Group has entered into derivative instruments not in hedging relationship by
designated as cash flow hedges: way of foreign exchange forward, currency options and futures contracts. As at
As at March 31, 2020 As at March 31, 2019 March 31, 2020 and 2019, the notional amount of outstanding contracts aggregated
Foreign No. of Notional Fair value No. of Notional Fair value to `40,298 crore and `34,939 crore, respectively and the respective fair value of
currency contracts amount of (` crore) contracts amount of (` crore) these contracts have a net loss of `380 crore and net gain of `288 crore.
contracts contracts
Exchange loss of `461 crore and exchange gain of `408 crore on foreign exchange
(In million) (In million)
US Dollar 55 1,420 20 28 1,000 128 forward, currency options and futures contracts that do not qualify for hedge
Great Britain 71 384 59 24 177 23 accounting have been recognised in the consolidated statement of profit and loss for
Pound the years ended March 31, 2020 and 2019, respectively.
Euro 38 363 (31) 33 239 50 Net foreign exchange gains include loss of `64 crore and gain of `30 crore
Australian Dollar 26 192 48 26 181 22 transferred from cash flow hedging reserve for the years ended March 31, 2020 and
Canadian Dollar 19 104 16 21 99 14 2019, respectively.
The movement in cash flow hedging reserve for derivatives designated as cash flow
Net loss on derivative instruments of `23 crore recognised in cash flow hedging
hedges is as follows:
reserve as at March 31, 2020, is expected to be transferred to the statement of profit
(` crore) and loss by March 31, 2021. The maximum period over which the exposure to cash
flow variability has been hedged is through calendar year 2020.
March 31, 2020 March 31, 2019
Intrinsic Time Intrinsic Time Following table summarises approximate gain / (loss) on Group’s other
value value value value comprehensive income on account of appreciation / depreciation of the underlying
Balance at the beginning of the year 134 (30) (2) (69) foreign currencies:
(Gain) / loss transferred to profit and loss on (449) 513 (488) 458
occurrence of forecasted hedge transactions (` crore)
Deferred tax on (gain) / loss transferred to 54 (38) 94 (25)
profit and loss on occurrence of forecasted As at As at
hedge transactions March 31, 2020 March 31, 2019
Change in the fair value of effective portion of 355 (565) 641 (414) 10% Appreciation of the underlying foreign (407) (64)
cash flow hedges
currencies
Deferred tax on fair value of effective portion (49) 52 (111) 20
of cash flow hedges 10% Depreciation of the underlying foreign 1,261 1,370
Balance at the end of the year 45 (68) 134 (30) currencies

(k) Financial risk management The Group evaluates the impact of foreign exchange rate fluctuations by
//!//%*#ƫ%0/ƫ!4,+/1.!ƫ0+ƫ!4$*#!ƫ.0!ƫ.%/'/ċƫ 0ƫ$! #!/ƫƫ,.0ƫ+"ƫ0$!/!ƫ.%/'/ƫ5ƫ
The Group is exposed primarily to fluctuations in foreign currency exchange rates,
1/%*#ƫ !.%20%2!ƫü**%(ƫ%*/0.1)!*0/ƫ%*ƫ(%*!ƫ3%0$ƫ%0/ƫ.%/'ƫ)*#!)!*0ƫ,+(%%!/ċ
.! %0Čƫ(%-1% %05ƫ* ƫ%*0!.!/0ƫ.0!ƫ.%/'/Čƫ3$%$ƫ)5ƫ 2!./!(5ƫ%),0ƫ0$!ƫ"%.ƫ2(1!ƫ+"ƫ
%0/ƫü**%(ƫ%*/0.1)!*0/ċƫ$!ƫ.+1,ƫ$/ƫƫ.%/'ƫ)*#!)!*0ƫ,+(%5ƫ3$%$ƫ+2!./ƫ.%/'/ƫ The foreign exchange rate sensitivity is calculated by aggregation of the net
//+%0! ƫ3%0$ƫ0$!ƫü**%(ƫ//!0/ƫ* ƫ(%%(%0%!/ċƫ$!ƫ.%/'ƫ)*#!)!*0ƫ,+(%5ƫ%/ƫ foreign exchange rate exposure and a simultaneous parallel foreign exchange
,,.+2! ƫ5ƫ0$!ƫ+. ƫ+"ƫ%.!0+./ċƫ$!ƫ"+1/ƫ+"ƫ0$!ƫ.%/'ƫ)*#!)!*0ƫ+))%00!!ƫ%/ƫ rates shift of all the currencies by 10% against the respective functional
to assess the unpredictability of the financial environment and to mitigate potential currencies of Tata Consultancy Services Limited and its subsidiaries.
adverse effects on the financial performance of the Group.
ƫ ƫ $!ƫ"+((+3%*#ƫ*(5/%/ƫ$/ƫ!!*ƫ3+.'! ƫ+10ƫ/! ƫ+*ƫ0$!ƫ*!0ƫ!4,+/1.!/ƫ"+.ƫ
Market risk each of the subsidiaries and Tata Consultancy Services Limited as of the date
of balance sheet which could affect the statement of profit and loss and other
ƫ .'!0ƫ.%/'ƫ%/ƫ0$!ƫ.%/'ƫ0$0ƫ0$!ƫ"%.ƫ2(1!ƫ+.ƫ"101.!ƫ/$ƫý+3/ƫ+"ƫƫü**%(ƫ%*/0.1)!*0ƫ
comprehensive income and equity. Further the exposure as indicated below
3%((ƫý1010!ƫ!1/!ƫ+"ƫ$*#!/ƫ%*ƫ).'!0ƫ,.%!/ċƫ1$ƫ$*#!/ƫ%*ƫ0$!ƫ2(1!/ƫ+"ƫ
is mitigated by some of the derivative contracts entered into by the Group as
financial instruments may result from changes in the foreign currency exchange rates,
disclosed in note 8(j).
%*0!.!/0ƫ.0!/Čƫ.! %0Čƫ(%-1% %05ƫ* ƫ+0$!.ƫ).'!0ƫ$*#!/ċƫ$!ƫ.+1,Ě/ƫ!4,+/1.!ƫ0+ƫ
).'!0ƫ.%/'ƫ%/ƫ,.%).%(5ƫ+*ƫ+1*0ƫ+"ƫ"+.!%#*ƫ1..!*5ƫ!4$*#!ƫ.0!ƫ.%/'ċ The following table sets forth information relating to unhedged foreign
currency exposure as at March 31, 2020:
ƫ đƫ +.!%#*ƫ1..!*5ƫ!4$*#!ƫ.0!ƫ.%/'
The fluctuation in foreign currency exchange rates may have potential impact (` crore)
on the consolidated statement of profit and loss and other comprehensive USD EUR GBP Others
income and equity, where any transaction references more than one currency
Net financial assets 2,140 239 82 1,145
or where assets / liabilities are denominated in a currency other than the
functional currency of the respective entities. Considering the countries and Net financial (3,257) (325) (160) (249)
economic environment in which the Group operates, its operations are subject liabilities
0+ƫ.%/'/ƫ.%/%*#ƫ".+)ƫý1010%+*/ƫ%*ƫ!4$*#!ƫ.0!/ƫ%*ƫ0$+/!ƫ+1*0.%!/ċƫ 10% appreciation / depreciation of the respective functional currency of
ƫ ƫ $!ƫ.+1,Čƫ/ƫ,!.ƫ%0/ƫ.%/'ƫ)*#!)!*0ƫ,+(%5Čƫ1/!/ƫ !.%20%2!ƫ%*/0.1)!*0/ƫ Tata Consultancy Services Limited and its subsidiaries with respect to various
primarily to hedge foreign exchange. Further, any movement in the functional foreign currencies would result in increase / decrease in the Group’s profit
currencies of the various operations of the Group against major foreign before taxes by approximately `39 crore for the year ended March 31, 2020.
currencies may impact the Group’s revenue in international business.

The following table sets forth information relating to unhedged foreign !*+),//!/ƫ+"ƫ+0$Čƫ0$!ƫ %.!0ƫ.%/'ƫ+"ƫ !"1(0ƫ* ƫ0$!ƫ.%/'ƫ+"ƫ !0!.%+.0%+*ƫ+"ƫ
currency exposure as at March 31, 2019: .! %03+.0$%*!//ƫ/ƫ3!((ƫ/ƫ+*!*0.0%+*ƫ+"ƫ.%/'/ċƫ.! %0ƫ.%/'ƫ%/ƫ+*0.+((! ƫ5ƫ
analysing credit limits and creditworthiness of customers on a continuous basis to
(` crore) whom the credit has been granted after obtaining necessary approvals for credit.
USD EUR GBP Others
ƫ %**%(ƫ%*/0.1)!*0/ƫ0$0ƫ.!ƫ/1&!0ƫ0+ƫ+*!*0.0%+*/ƫ+"ƫ.! %0ƫ.%/'ƫ,.%*%,((5ƫ
Net financial assets 2,519 321 500 1,285
consist of trade receivables, unbilled receivables, loan receivables,investments,
Net financial (82) - (10) (308)
!.%20%2!ƫü**%(ƫ%*/0.1)!*0/Čƫ/$ƫ* ƫ/$ƫ!-1%2(!*0/Čƫ*'ƫ !,+/%0/ƫ* ƫ+0$!.ƫ
liabilities
financial assets. Inter-corporate deposits of `8,198 crore are with a financial institution
10% appreciation / depreciation of the respective functional currency of $2%*#ƫƫ$%#$ƫ.! %0ġ.0%*#ƫ//%#*! ƫ5ƫ.! %0ġ.0%*#ƫ#!*%!/ċƫ*'ƫ !,+/%0/ƫ%*(1 !ƫ
Tata Consultancy Services Limited and its subsidiaries with respect to an amount of `āČāăĆƫ.+.!ƫ$!( ƫ3%0$ƫ03+ƫ * %*ƫ*'/ƫ$2%*#ƫ$%#$ƫ.! %0ƫ.0%*#ƫ3$%$ƫ
various foreign currencies would result in decrease / increase in the .!ƫ%* %2% 1((5ƫ%*ƫ!4!//ƫ+"ƫāĀŌƫ+.ƫ)+.!ƫ+"ƫ0$!ƫ.+1,Ě/ƫ0+0(ƫ*'ƫ !,+/%0/ƫ/ƫ0ƫ5!.ƫ
Group’s profit before taxes by approximately `423 crore for the year ended March 31, 2020. None of the other financial instruments of the Group result in
ended March 31, 2019. )0!.%(ƫ+*!*0.0%+*ƫ+"ƫ.! %0ƫ.%/'ċ
Impact of COVID-19 (Global pandemic) ƫ đƫ 4,+/1.!ƫ0+ƫ.! %0ƫ.%/'
The Group basis their assessment believes that the probability of the
The carrying amount of financial assets and contract assets represents the
occurrence of their forecasted transactions is not impacted by COVID-19
)4%)1)ƫ.! %0ƫ!4,+/1.!ċƫ$!ƫ)4%)1)ƫ!4,+/1.!ƫ0+ƫ.! %0ƫ.%/'ƫ3/ƫ
pandemic. The Group has also considered the effect of changes, if any, in
`88,291 crore and `89,172 crore as at March 31, 2020 and 2019, respectively,
+0$ƫ+1*0!.,.05ƫ.! %0ƫ.%/'ƫ* ƫ+3*ƫ.! %0ƫ.%/'ƫ3$%(!ƫ//!//%*#ƫ$! #!ƫ
!%*#ƫ0$!ƫ0+0(ƫ+"ƫ0$!ƫ..5%*#ƫ)+1*0ƫ+"ƫ(*!/ƫ3%0$ƫ*'/Čƫ*'ƫ
effectiveness and measuring hedge ineffectiveness. The Group continues to
believe that there is no impact on effectiveness of its hedges. deposits, investments, trade receivables, unbilled receivables,loan
receivables,contract assets and other financial assets.
ƫ đƫ *0!.!/0ƫ.0!ƫ.%/'
The Group’s exposure to customers is diversified and no single customer
The Group’s investments are primarily in fixed rate interest bearing
contributes to more than 10% of outstanding trade receivables, unbilled
%*2!/0)!*0/ċƫ!*!Čƫ0$!ƫ.+1,ƫ%/ƫ*+0ƫ/%#*%ü*0(5ƫ!4,+/! ƫ0+ƫ%*0!.!/0ƫ.0!ƫ.%/'ċƫ
receivables and contract assets as at March 31, 2020 and 2019.
Credit risk
.! %0ƫ.%/'ƫ%/ƫ0$!ƫ.%/'ƫ+"ƫü**%(ƫ(+//ƫ.%/%*#ƫ".+)ƫ+1*0!.,.05ƫ"%(1.!ƫ0+ƫ.!,5ƫ
+.ƫ/!.2%!ƫ !0ƫ+. %*#ƫ0+ƫ0$!ƫ+*0.01(ƫ0!.)/ƫ+.ƫ+(%#0%+*/ċƫ.! %0ƫ.%/'ƫ

Geographic concentration of credit risk Liquidity risk
Geographic concentration of trade receivables (gross and net of allowances), ƫ ƫ %-1% %05ƫ.%/'ƫ.!"!./ƫ0+ƫ0$!ƫ.%/'ƫ0$0ƫ0$!ƫ.+1,ƫ**+0ƫ)!!0ƫ%0/ƫü**%(ƫ
unbilled receivables and contract assets is as follows: +(%#0%+*/ċƫ$!ƫ+&!0%2!ƫ+"ƫ(%-1% %05ƫ.%/'ƫ)*#!)!*0ƫ%/ƫ0+ƫ)%*0%*ƫ/1þ%!*0ƫ
liquidity and ensure that funds are available for use as per requirements. The
As at March 31, 2020 As at March 31, 2019 Group consistently generated sufficient cash flows from operations to meet its
Gross% Net% Gross% Net% financial obligations including lease liabilities as and when they fall due.
United States of 44.94 45.66 45.95 46.67 The tables below provide details regarding the contractual maturities of
America significant financial liabilities as of:
India 11.56 10.01 11.83 10.37
United Kingdom 14.74 15.02 14.12 14.30 (` crore)
Geographical concentration of trade receivables, unbilled receivables and March 31, 2020 Due in Due in Due in Due Total
contract assets is allocated based on the location of the customers. 1st year 2nd year 3rd to after
5th year 5th year
The allowance for lifetime expected credit loss on trade receivables for
Non-derivative financial
the years ended March 31, 2020 and 2019 was `133 crore and `187 crore
liabilities
respectively. The reconciliation of allowance for doubtful trade receivables
is as follows: Trade payables 6,740 - - - 6,740
Lease liabilities 1,722 1,514 3,517 4,034 10,787
(` crore)
Other financial liabilities 5,407 12 279 - 5,698
March 31, 2020 March 31, 2019 13,869 1,526 3,796 4,034 23,225
Balance at the beginning of 1,020 831 Derivative financial 693 - - - 693
the year liabilities
Change during the year 133 187 Total 14,562 1,526 3,796 4,034 23,918
Bad debts written off (43) (9)
Translation exchange difference 27 11
Balance at the end of the year 1,137 1,020

(` crore) Financial assets of `10,015 crore as at March 31, 2020 carried at amortised
+/0ƫ%/ƫ%*ƫ0$!ƫ"+.)ƫ+"ƫ/$ƫ* ƫ/$ƫ!-1%2(!*0/Čƫ*'ƫ !,+/%0/ƫ* ƫ!.).'! ƫ
March 31, 2019 Due in Due in Due in Due after Total (*!/ƫ3%0$ƫ*'/ƫ3$!.!ƫ0$!ƫ.+1,ƫ$/ƫ//!//! ƫ0$!ƫ+1*0!.,.05ƫ
1st year 2nd year 3rd to 5th year .! %0ƫ.%/'ċƫ. !ƫ.!!%2(!/ƫ+"ƫ`30,606 crore as at March 31, 2020 forms
5th year a significant part of the financial assets carried at amortised cost which is
Non-derivative financial valued considering provision for allowance using expected credit loss method.
liabilities In addition to the historical pattern of credit loss, we have considered the
(%'!(%$++ ƫ+"ƫ%*.!/! ƫ.! %0ƫ.%/'ƫ* ƫ+*/!-1!*0%(ƫ !"1(0ƫ+*/% !.%*#ƫ
Trade payables 6,292 - - - 6,292
emerging situations due to COVID-19. This assessment is not based on
Lease liabilities - 18 37 - 55 any mathematical model but an assessment considering the nature of
Other financial liabilities 4,843 12 227 48 5,130 2!.0%(/Čƫ%),0ƫ%))! %0!(5ƫ/!!*ƫ%*ƫ0$!ƫ !)* ƫ+10(++'ƫ+"ƫ0$!/!ƫ2!.0%(/ƫ
and the financial strength of the customers in respect of whom amounts
11,135 30 264 48 11,477 are receivable. The Group has specifically evaluated the potential impact
Derivative financial 60 - - - 60 with respect to customers in Retail, Travel, Transportation and Hospitality,
liabilities Manufacturing and Energy verticals which could have an immediate impact
and the rest which could have an impact with a lag. The Group closely
Total 11,195 30 264 48 11,537
monitors its customers who are going through financial stress and assesses
Other risk - Impact of COVID-19 actions such as change in payment terms, discounting of receivables with
institutions on no-recourse basis, recognition of revenue on collection basis
Financial assets carried at fair value as at March 31, 2020 is `26,581 crore etc., depending on severity of each case. The same assessment is done in
and financial assets are carried at amortised cost as at March 31, 2020 is respect of unbilled receivables and contract assets of `10,545 crore as at
`57,264 crore. A significant part of the financial assets are classified as Level March 31, 2020 while arriving at the level of provision that is required. Basis
1 having fair value of `26,336 crore as at March 31, 2020. The fair value of this assessment, the allowance for doubtful trade receivables of `1,137 crore as
0$!/!ƫ//!0/ƫ%/ƫ).'! ƫ0+ƫ*ƫ0%2!ƫ).'!0ƫ3$%$ƫ"0+./ƫ0$!ƫ1*!.0%*0%!/ƫ at March 31, 2020 is considered adequate.
arising out of COVID-19. The financial assets carried at fair value by the Group
are mainly investments in liquid debt securities and accordingly, any material
volatility is not expected.

(l) Equity instruments In the previous year, the Company allotted 191,42,87,591 equity shares as fully paid
The authorised, issued, subscribed and fully paid-up share capital consist of the up bonus shares by capitalisation of profits transferred from retained earnings
following: amounting to `86 crore and capital redemption reserve amounting to `106 crore.
ƫ $!ƫ+),*5ƫ+1#$0ƫ'ƫĈČćāČĊĀČąĈćƫ!-1%05ƫ/$.!/ƫ"+.ƫ*ƫ##.!#0!ƫ)+1*0ƫ+"ƫ
(` crore)
`16,000 crore being 1.99% of the total paid up equity share capital at `2,100 per
As at As at !-1%05ƫ/$.!ƫ%*ƫ0$!ƫ,.!2%+1/ƫ5!.ċƫ$!ƫ!-1%05ƫ/$.!/ƫ+1#$0ƫ'ƫ3!.!ƫ!40%*#1%/$! ƫ
March 31, 2020 March 31, 2019 on September 26, 2018.
Authorised I. Reconciliation of number of shares
460,05,00,000 equity shares of `1 each 460 460
As at March 31, 2020 As at March 31, 2019
(March 31, 2019: 460,05,00,000 equity shares
of `1 each) Number of Amount Number of Amount
shares (` crore) shares (` crore)
105,02,50,000 preference shares of `1 each 105 105
Equity shares
(March 31, 2019: 105,02,50,000 preference
shares of `1 each) Opening balance 375,23,84,706 375 191,42,87,591 191
565 565 Issued during the year - - 191,42,87,591 192
Issued, Subscribed and Fully paid up Shares extinguished on - - (7,61,90,476) (8)

15ġ'
375,23,84,706 equity shares of `1 each 375 375
Closing balance 375,23,84,706 375 375,23,84,706 375
(March 31, 2019: 375,23,84,706 equity shares
of `1 each) II. Rights, preferences and restrictions attached to shares
375 375
The Company has one class of equity shares having a par value of `1 each.
The Company’s objective for capital management is to maximise shareholder value, Each shareholder is eligible for one vote per share held and carry a right to
safeguard business continuity and support the growth of the Company. The Company dividend. The dividend proposed by the Board of Directors is subject to the
determines the capital requirement based on annual operating plans and long-term approval of the shareholders in the ensuing Annual General Meeting, except
and other strategic investment plans. The funding requirements are met through in case of interim dividend. In the event of liquidation, the equity shareholders
equity and operating cash flows generated. The Company is not subject to any are eligible to receive the remaining assets of the Company after distribution
externally imposed capital requirements. of all preferential amounts, in proportion to their shareholding.

III. Shares held by Holding company, its Subsidiaries and Associates IV. Details of shares held by shareholders holding more than 5% of the
aggregate shares in the Company
(` crore)
As at As at As at As at
Equity shares Equity shares
Holding company Tata Sons Private Limited, the holding 270,24,50,947 270,24,50,947
270,24,50,947 equity shares (March 31, 270 270 company
2019: 270,24,50,947 equity shares) are % of shareholding 72.02% 72.02%
held by Tata Sons Private Limited
Subsidiaries and Associates of
V. Equity shares movement during 5 years preceding March 31, 2020
Holding company
7,220 equity shares (March 31, 2019: - - ƫ ƫ đƫ -1%05ƫ/$.!/ƫ%//1! ƫ/ƫ+*1/
7,220 equity shares) are held by The Company allotted 191,42,87,591 equity shares as fully paid up bonus
Tata Industries Limited* shares by capitalisation of profits transferred from retained earnings
10,36,269 equity shares (March 31, - - amounting to `86 crore and capital redemption reserve amounting to
2019: 10,36,269 equity shares) are `āĀćƫ.+.!Čƫ,1./1*0ƫ0+ƫ*ƫ+. %*.5ƫ.!/+(10%+*ƫ,//! ƫ"0!.ƫ0'%*#ƫ0$!ƫ
held by Tata Investment Corporation consent of shareholders through postal ballot.
Limited* đƫ -1%05ƫ/$.!/ƫ!40%*#1%/$! ƫ+*ƫ15ġ'
46,798 equity shares (March 31, 2019: - -
ƫ $!ƫ+),*5ƫ+1#$0ƫ'ƫĈČćāČĊĀČąĈćƫ!-1%05ƫ/$.!/ƫ"+.ƫ*ƫ##.!#0!ƫ
46,798 equity shares) are held by
amount of `16,000 crore being 1.99% of the total paid up equity share
Tata Steel Limited*
capital at `ĂČāĀĀƫ,!.ƫ!-1%05ƫ/$.!ċƫ$!ƫ!-1%05ƫ/$.!/ƫ+1#$0ƫ'ƫ3!.!ƫ
766 equity shares (March 31, 2019: - -
extinguished on September 26, 2018.
766 equity shares) are held by
The Tata Power Company Limited* 5,61,40,350 equity shares of `āƫ!$ƫ3!.!ƫ!40%*#1%/$! ƫ+*ƫ15ġ'ƫ
by the Company pursuant to a Letter of Offer made to all eligible
270 270
shareholders of the Company at `2,850 per equity share. The equity
*Equity shares having value less than `0.50 crore. /$.!/ƫ+1#$0ƫ'ƫ3!.!ƫ!40%*#1%/$! ƫ+*ƫ
1*!ƫĈČƫĂĀāĈċ

đƫ -1%05ƫ/$.!/ƫ((+00! ƫ/ƫ"1((5ƫ,% ġ1,ƫ%*(1 %*#ƫ!-1%05ƫ/$.!/ƫ"1((5ƫ are determined on the same basis as those of property, plant and equipment. Right-
paid pursuant to contract without payment being received in cash of-use assets are tested for impairment whenever there is any indication that their
1,16,99,962 equity shares issued to the shareholders of CMC Limited carrying amounts may not be recoverable. Impairment loss, if any, is recognised in
in terms of the scheme of amalgamation (‘the Scheme’) sanctioned the statement of profit and loss.
by the High Court of Judicature at Bombay vide its Order dated The Group measures the lease liability at the present value of the lease payments
August 14, 2015 and the High Court of Judicature at Hyderabad vide that are not paid at the commencement date of the lease. The lease payments are
its Order dated July 20, 2015. discounted using the interest rate implicit in the lease, if that rate can be readily
9) Leases determined. If that rate cannot be readily determined, the Group uses incremental
borrowing rate. For leases with reasonably similar characteristics, the Group, on a
A contract is, or contains, a lease if the contract conveys the right to control the use
lease by lease basis, may adopt either the incremental borrowing rate specific to
of an identified asset for a period of time in exchange for consideration.
the lease or the incremental borrowing rate for the portfolio as a whole. The lease
Group as a lessee payments shall include fixed payments, variable lease payments, residual value
The Group accounts for each lease component within the contract as a lease guarantees, exercise price of a purchase option where the Group is reasonably certain
separately from non-lease components of the contract and allocates the to exercise that option and payments of penalties for terminating the lease, if the
consideration in the contract to each lease component on the basis of the relative lease term reflects the lessee exercising an option to terminate the lease. The lease
stand-alone price of the lease component and the aggregate stand-alone price of the liability is subsequently remeasured by increasing the carrying amount to reflect
non-lease components. interest on the lease liability, reducing the carrying amount to reflect the lease
The Group recognises right-of-use asset representing its right to use the underlying payments made and remeasuring the carrying amount to reflect any reassessment
asset for the lease term at the lease commencement date. The cost of the right- or lease modifications or to reflect revised in-substance fixed lease payments.
of-use asset measured at inception shall comprise of the amount of the initial The Group recognises the amount of the re-measurement of lease liability due to
measurement of the lease liability adjusted for any lease payments made at or before modification as an adjustment to the right-of-use asset and statement of profit
the commencement date less any lease incentives received, plus any initial direct and loss depending upon the nature of modification. Where the carrying amount
costs incurred and an estimate of costs to be incurred by the lessee in dismantling of the right-of-use asset is reduced to zero and there is a further reduction in the
and removing the underlying asset or restoring the underlying asset or site on which measurement of the lease liability, the Group recognises any remaining amount of the
it is located. The right-of-use assets is subsequently measured at cost less any re-measurement in statement of profit and loss.
accumulated depreciation, accumulated impairment losses, if any and adjusted for The Group has elected not to apply the requirements of Ind AS 116 Leases to short-
any remeasurement of the lease liability. The right-of-use assets is depreciated using term leases of all assets that have a lease term of 12 months or less and leases for
the straight-line method from the commencement date over the shorter of lease term which the underlying asset is of low value. The lease payments associated with these
or useful life of right-of-use asset. The estimated useful lives of right-of-use assets leases are recognised as an expense on a straight-line basis over the lease term.

Group as a lessor recognised as an adjustment to the opening balance of retained earnings as on
At the inception of the lease the Group classifies each of its leases as either an April 1, 2019.
operating lease or a finance lease. The Group recognises lease payments received Refer note 2(h) – Significant accounting policies – Leases in the Annual report of the
under operating leases as income on a straight-line basis over the lease term. In Group for the year ended March 31, 2019, for the policy as per Ind AS 17.
case of a finance lease, finance income is recognised over the lease term based on Group as a lessee
a pattern reflecting a constant periodic rate of return on the lessor’s net investment
Operating leases
in the lease. When the Group is an intermediate lessor it accounts for its interests in
the head lease and the sub-lease separately. It assesses the lease classification of a For transition, the Group has elected not to apply the requirements of Ind AS 116 to
sub-lease with reference to the right-of-use asset arising from the head lease, not leases which are expiring within 12 months from the date of transition by class of
with reference to the underlying asset. If a head lease is a short term lease to which asset and leases for which the underlying asset is of low value on a lease-by-lease
basis. The Group has also used the practical expedient provided by the standard
the Group applies the exemption described above, then it classifies the sub-lease as
when applying Ind AS 116 to leases previously classified as operating leases under
an operating lease.
Ind AS 17 and therefore, has not reassessed whether a contract, is or contains a
If an arrangement contains lease and non-lease components, the Group applies Ind lease, at the date of initial application, relied on its assessment of whether leases are
AS 115 Revenue from contracts with customers to allocate the consideration in the onerous, applying Ind AS 37 immediately before the date of initial application as an
contract. alternative to performing an impairment review, excluded initial direct costs from
Transition to Ind AS 116 measuring the right-of-use asset at the date of initial application and used hindsight
when determining the lease term if the contract contains options to extend or
Ministry of Corporate Affairs (“MCA”) through Companies (Indian Accounting
terminate the lease. The Group has used a single discount rate to a portfolio of leases
Standards) Amendment Rules, 2019 and Companies (Indian Accounting Standards)
with similar characteristics.
Second Amendment Rules, has notified Ind AS 116 Leases which replaces the existing
lease standard, Ind AS 17 Leases and other interpretations. Ind AS 116 sets out the On transition, the Group recognised a lease liability measured at the present value
principles for the recognition, measurement, presentation and disclosure of leases of the remaining lease payments. The right-of-use asset is recognised at its carrying
for both lessees and lessors. It introduces a single, on-balance sheet lease accounting amount as if the standard had been applied since the commencement of the lease,
model for lessees. but discounted using the lessee’s incremental borrowing rate as at April 1, 2019.
Accordingly, a right-of-use asset of `6,360 crore and lease liability of `6,831 crore has
The Group has adopted Ind AS 116, effective annual reporting period beginning
been recognised. The cumulative effect on transition in retained earnings net of taxes
April 1, 2019 and applied the standard to its leases, retrospectively, with the is `359 crore (including the deferred tax of `170 crore). The principal portion of the
cumulative effect of initially applying the standard, recognised on the date of initial lease payments have been disclosed under cash flow from financing activities. The
application (April 1, 2019). Accordingly, the Group has not restated comparative lease payments for operating leases as per Ind AS 17 - Leases, were earlier reported
information, instead, the cumulative effect of initially applying this standard has been under cash flow from operating activities. The weighted average incremental

borrowing rate of 6.78% has been applied to lease liabilities recognised in the balance The details of the right-of-use asset held by the Group is as follows:
sheet at the date of initial application.
(` crore)
On application of Ind AS 116, the nature of expenses has changed from lease rent in
Additions for year Net carrying amount
previous periods to depreciation cost for the right-of-use asset, and finance cost for
ended March 31, 2020 as at March 31, 2020
interest accrued on lease liability.
Leasehold land 474 690
The difference between the future minimum lease rental commitments towards
non-cancellable operating leases and finance leases reported as at March 31, 2019 Buildings 2,443 7,218
compared to the lease liability as accounted as at April 1, 2019 is primarily due to Leasehold improvements 15 46
inclusion of present value of the lease payments for the cancellable term of the Computer equipment 7 13
leases, reduction due to discounting of the lease liabilities as per the requirement of Vehicles 5 16
Ind AS 116 and exclusion of the commitments for the leases to which the Group has Office equipment 7 11
chosen to apply the practical expedient as per the standard.
2,951 7,994
Finance lease
Depreciation on right-of-use asset is as follows:
The Group has leases that were classified as finance leases applying Ind AS 17. For
such leases, the carrying amount of the right-of-use asset and the lease liability at (` crore)
the date of initial application of Ind AS 116 is the carrying amount of the lease asset
Year ended
and lease liability on the transition date as measured applying Ind AS 17. Accordingly,
March 31, 2020
an amount of `31 crore has been reclassified from property, plant and equipment to
Leasehold land 4
right-of-use assets. An amount of `18 crore has been reclassified from other current
financial liabilities to lease liability – current and an amount of `44 crore has been Buildings 1,225
reclassified from borrowings – non-current to lease liability – non-current. Leasehold improvements 10
Group as a lessor Computer equipment 17
ƫ $!ƫ.+1,ƫ%/ƫ*+0ƫ.!-1%.! ƫ0+ƫ)'!ƫ*5ƫ &1/0)!*0/ƫ+*ƫ0.*/%0%+*ƫ0+ƫ * ƫƫāāćƫ"+.ƫ Vehicles 10
leases in which it acts as a lessor, except for a sub-lease. The Group accounted for its Office equipment 2
leases in accordance with Ind AS 116 from the date of initial application. The Group 1,268
does not have any significant impact on account of sub-lease on the application of
this standard. Interest on lease liabilities is `492 crore for the year ended on March 31, 2020.

The Group incurred `392 crore for the year ended March 31, 2020 towards expenses The estimated useful lives are as mentioned below:
relating to short-term leases and leases of low-value assets. The total cash outflow
for leases is `2,465 crore for the year ended March 31, 2020, including cash outflow Type of asset Useful lives
of short-term leases and leases of low-value assets. The Group has lease term Buildings 20 years
extension options that are not reflected in the measurement of lease liabilities. The
Leasehold improvements Lease term
present value of future cash outflows for such extension periods as at March 31, 2020
is `457 crore. Plant and equipment 10 years
ƫ !/!ƫ+*0.0/ƫ!*0!.! ƫ5ƫ0$!ƫ.+1,ƫ)&+.(5ƫ,!.0%*/ƫ"+.ƫ1%( %*#/ƫ0'!*ƫ+*ƫ(!/!ƫ Computer equipment 4 years

to conduct its business in the ordinary course. The Group does not have any lease Vehicles 4 years
restrictions and commitment towards variable rent as per the contract.
Office equipment 5 years
Impact of COVID-19
Electrical installations 4-10 years
The Group does not foresee any large-scale contraction in demand which could result Furniture and fixtures 5 years
in significant down-sizing of its employee base rendering the physical infrastructure
redundant. The leases that the Group has entered with lessors towards properties ƫ ƫ !,.!%0%+*ƫ%/ƫ*+0ƫ.!+. ! ƫ+*ƫ,%0(ƫ3+.'ġ%*ġ,.+#.!//ƫ1*0%(ƫ+*/0.10%+*ƫ
used as delivery centers / sales offices are long term in nature and no changes in and installation are complete and the asset is ready for its intended use.
terms of those leases are expected due to the COVID-19. Property, plant and equipment with finite life are evaluated for recoverability
whenever there is any indication that their carrying amounts may not be
10) Non-financial assets and liabilities
recoverable. If any such indication exists, the recoverable amount (i.e. higher
(a) Property, plant and equipment of the fair value less cost to sell and the value-in-use) is determined on an
Property, plant and equipment are stated at cost comprising of purchase price individual asset basis unless the asset does not generate cash flows that are
* ƫ*5ƫ%*%0%(ƫ %.!0(5ƫ00.%10(!ƫ+/0ƫ+"ƫ.%*#%*#ƫ0$!ƫ//!0ƫ0+ƫ%0/ƫ3+.'%*#ƫ largely independent of those from other assets. In such cases, the recoverable
condition for its intended use, less accumulated depreciation (other than amount is determined for the cash generating unit (CGU) to which the asset
freehold land) and impairment loss, if any. belongs.
Depreciation is provided for property, plant and equipment on a straight-line If the recoverable amount of an asset (or CGU) is estimated to be less than
basis so as to expense the cost less residual value over their estimated useful its carrying amount, the carrying amount of the asset (or CGU) is reduced to
lives based on a technical evaluation. The estimated useful lives and residual its recoverable amount. An impairment loss is recognised in the statement of
values are reviewed at the end of each reporting period, with the effect of any profit and loss.
change in estimate accounted for on a prospective basis.

Property, plant and equipment consist of the following:
(` crore)
Freehold land Buildings Leasehold Plant and Computer Vehicles Office Electrical Furniture and Total
improvements equipment equipment equipment installations fixtures
Cost as at 345 7,429 2,403 552 7,687 39 2,377 1,935 1,755 24,522
April 1, 2019
Transition impact of Ind AS 116 (Refer note 9) - - (106) - (130) - (5) - (2) (243)
Restated cost as at April 1, 2019 345 7,429 2,297 552 7,557 39 2,372 1,935 1,753 24,279
Additions - 290 302 134 1,620 5 223 119 165 2,858
Disposals - (7) (185) - (379) (2) (90) (19) (51) (733)
Translation exchange difference 2 7 13 (5) (4) - 4 4 19 40
Cost as at March 31, 2020 347 7,719 2,427 681 8,794 42 2,509 2,039 1,886 26,444
Accumulated depreciation as at April 1, 2019 - (2,187) (1,396) (172) (5,906) (31) (1,921) (1,132) (1,366) (14,111)
Transition impact of Ind AS 116 (Refer note 9) - - 60 - 129 - 4 - 1 194
Restated accumulated depreciation as at - (2,187) (1,336) (172) (5,777) (31) (1,917) (1,132) (1,365) (13,917)
April 1, 2019
Depreciation for the year - (379) (191) (60) (998) (5) (232) (147) (160) (2,172)
Disposals - 6 99 - 357 2 85 18 51 618
Translation exchange difference - (3) (13) 4 4 - (4) (5) (15) (32)
Accumulated depreciation as at March 31, 2020 - (2,563) (1,441) (228) (6,414) (34) (2,068) (1,266) (1,489) (15,503)
Net carrying amount as at March 31, 2020 347 5,156 986 453 2,380 8 441 773 397 10,941

(` crore)
Freehold land Buildings Leasehold Plant and Computer Vehicles Office Electrical Furniture and Total
improvements equipment equipment equipment installations fixtures
Cost as at April 1, 2018 348 7,102 2,257 501 6,786 34 2,221 1,831 1,640 22,720
Additions (4) 335 236 56 1,120 7 200 130 150 2,230
Disposals - (13) (95) (3) (194) (2) (46) (30) (45) (428)
Translation exchange difference 1 5 5 (2) (25) - 2 4 10 -
Cost as at March 31, 2019 345 7,429 2,403 552 7,687 39 2,377 1,935 1,755 24,522
Accumulated depreciation as at April 1, 2018 - (1,821) (1,283) (122) (5,292) (28) (1,720) (1,004) (1,234) (12,504)
Depreciation for the year - (374) (205) (54) (820) (4) (245) (147) (168) (2,017)
Disposals - 10 94 2 194 1 46 23 43 413
Translation exchange difference - (2) (2) 2 12 - (2) (4) (7) (3)
Accumulated depreciation as at March 31, 2019 - (2,187) (1,396) (172) (5,906) (31) (1,921) (1,132) (1,366) (14,111)
Net carrying amount as at March 31, 2019 345 5,242 1,007 380 1,781 8 456 803 389 10,411

Net carrying amount of property, plant and equipment under finance lease Goodwill consist of the following:
arrangements are as follows:
(` crore)
(` crore) As at As at
As at March 31, 2020 March 31, 2019
March 31, 2019 Balance at the beginning of the year 1,700 1,745
Leasehold improvements 27 Additional amount recognised from - 14
Computer equipment 2 business combination during the year
Office equipment 1 Translation exchange difference 10 (59)
Furniture and fixtures 1 Balance at the end of the year 1,710 1,700
Leased assets 31
Goodwill of `636 crore and `594 crore as at March 31, 2020 and 2019,
(b) Goodwill respectively, has been allocated to the TCS business in France. The estimated
value-in-use of this CGU is based on the future cash flows using a 1.50%
Goodwill represents the cost of acquired business as established at the date
annual growth rate for periods subsequent to the forecast period of 5 years
of acquisition of the business in excess of the acquirer’s interest in the net
and discount rate of 9.30%. An analysis of the sensitivity of the computation
fair value of the identifiable assets, liabilities and contingent liabilities less
0+ƫƫ$*#!ƫ%*ƫ'!5ƫ,.)!0!./ƫĨ+,!.0%*#ƫ).#%*Čƫ %/+1*0ƫ.0!/ƫ* ƫ(+*#ƫ
accumulated impairment losses, if any. Goodwill is tested for impairment
term average growth rate), based on reasonable assumptions, did not identify
annually or when events or circumstances indicate that the implied fair value
any probable scenario in which the recoverable amount of the CGU would
of goodwill is less than its carrying amount.
decrease below its carrying amount.
CGUs to which goodwill has been allocated are tested for impairment annually,
The remaining amount of goodwill of `1,074 crore and `1,106 crore as at
or more frequently when there is indication for impairment. The financial
March 31, 2020 and 2019, respectively, (relating to different CGUs individually
projections basis which the future cash flows have been estimated consider
immaterial) has been evaluated based on the cash flow forecasts of the
the increase in economic uncertainties due to COVID-19, reassessment of the
related CGUs and the recoverable amounts of these CGUs exceeded their
discount rates, revisiting the growth rates factored while arriving at terminal
carrying amounts.
value and subjecting these variables to sensitivity analysis. If the recoverable
amount of a CGU is less than its carrying amount, the impairment loss is (c) Other intangible assets
allocated first to reduce the carrying amount of any goodwill allocated to the Intangible assets purchased including acquired in business combination, are
unit and then to the other assets of the unit on a pro-rata basis of the carrying measured at cost as at the date of acquisition, as applicable, less accumulated
amount of each asset in the unit. amortisation and accumulated impairment, if any.

Intangible assets consist of rights under licensing agreement and software Intangible assets consist of the following:
licences and customer-related intangibles.
(` crore)
Following table summarises the nature of intangibles and their estimated
Rights under Customer- Total
useful lives:
licensing related
Type of asset Useful lives agreement intangibles
and software
Rights under licensing agreement Lower of licence period and
licences
and software licences 2-5 years
Cost as at April 1, 2019 256 115 371
Customer-related intangibles 3 years
Additions 192 - 192
Intangible assets are amortised on a straight-line basis over the period of its
Translation exchange - 5 5
economic useful life.
difference
Intangible assets with finite life are evaluated for recoverability whenever there
Cost as at March 31, 2020 448 120 568
is any indication that their carrying amounts may not be recoverable. If any
such indication exists, the recoverable amount (i.e. higher of the fair value less Accumulated amortisation as (102) (90) (192)
cost to sell and the value-in-use) is determined on an individual asset basis at April 1, 2019
unless the asset does not generate cash flows that are largely independent of Amortisation for the year (80) (9) (89)
those from other assets. In such cases, the recoverable amount is determined Translation exchange 2 (6) (4)
for the cash generating unit (CGU) to which the asset belongs. difference
If the recoverable amount of an asset (or CGU) is estimated to be less than Accumulated amortisation as (180) (105) (285)
its carrying amount, the carrying amount of the asset (or CGU) is reduced to at March 31, 2020
its recoverable amount. An impairment loss is recognised in the statement of Net carrying amount as at 268 15 283
profit and loss. March 31, 2020

(` crore) (d) Other assets
Rights under Customer- Total Other assets consist of the following:
licensing related Other assets – Non-current
agreement intangibles
and software (` crore)
licences As at As at
Cost as at April 1, 2018 80 89 169
Additions 178 - 178 March 31, 2020 March 31, 2019
Acquisition through a business - 28 28 Considered good
combination Contract assets 197 190
Translation exchange (2) (2) (4) Prepaid expenses 839 351
difference
Cost as at March 31, 2019 256 115 371 Prepaid rent - 339
Accumulated amortisation as (68) (89) (157) Contract fulfillment costs 286 174
at April 1, 2018 Capital advances 55 276
Amortisation for the year (35) (4) (39)
Advances to related parties 36 3
Translation exchange 1 3 4
difference Others 298 30
Accumulated amortisation as (102) (90) (192) 1,711 1,363
at March 31, 2019
Net carrying amount as at 154 25 179 Advances to related parties,
March 31, 2019 considered good, comprise:
The estimated amortisation for the years subsequent to March 31, 2020 is as Voltas Limited 3 2
follows: Tata Realty and Infrastructure Ltd* - -
(` crore) Concorde Motors (India) Limited - 1
Year ending March 31, Amortisation expense Tata Projects Limited 33 -
2021 103 Titan Engineering and Automation - -
2022 98 Limited*
2023 65
2024 17 *Represents value less than `0.50 crore.
Thereafter -
283

Other assets – Current Prepaid rent of `366 crore has been reclassified to right-of-use asset pursuant
to transition to Ind AS 116.
(` crore)
Non-current - Others includes advance of `271 crore towards acquiring
As at As at
right-of-use of leasehold land in the current year.
March 31, 2020 March 31, 2019
Contract fulfillment costs of `510 crore and `665 crore for the years ended
Considered good
March 31, 2020 and 2019, respectively, have been amortised in the statement
Contract assets 4,292 3,238 of profit and loss. Refer note 12 for changes in contract assets.
Prepaid expenses 1,498 614
(e) Inventories
Prepaid rent 15 50
Inventories consists of a) Raw materials, sub-assemblies and components,
Contract fulfillment costs 621 537
ĩƫ+.'ġ%*ġ,.+#.!//Čƫĩƫ0+.!/ƫ* ƫ/,.!ƫ,.0/ƫ* ƫ ĩƫ%*%/$! ƫ#++ /ċƫ
Advance to suppliers 136 139 Inventories are carried at lower of cost and net realisable value. The cost of
Advance to related parties 11 2 raw materials, sub-assemblies and components is determined on a weighted
Indirect taxes recoverable 1,374 1,170 average basis. Cost of finished goods produced or purchased by the Group
Other advances 130 142 includes direct material and labour cost and a proportion of manufacturing
Others 129 136 overheads.
Considered doubtful Inventories consist of the following:
Advance to suppliers 3 3
Indirect taxes recoverable 2 4 (` crore)
Other advances 3 4 As at As at
Less: Allowance on doubtful assets (8) (11) March 31, 2020 March 31, 2019
8,206 6,028 Raw materials, sub-assemblies and 5 9
Advance to related parties, components
considered good comprise: %*%/$! ƫ#++ /ƫ* ƫ3+.'ġ%*ġ,.+#.!//ĵ - -
The Titan Company Limited 3 1
Stores and spares - 1
Tata AIG General Insurance Company - 1
5 10
Limited
Tata AIA Life Insurance Company 1 - *Represents value less than `0.50 crore.
Limited
Tata Sons Private Limited 7 -

(f) Provisions 11) Other equity
Provisions consist of the following: Other equity consist of the following:
Provisions – Current
(` crore) (` crore)
Provision for foreseeable loss 238 184 Capital reserve 75 75
Other provisions 55 55 Capital redemption reserve
293 239 (i) Opening balance 431 529
(g) Other liabilities (ii) Transfer from retained earnings* - 8
Other liabilities consist of the following: (iii) Issue of bonus shares* - (106)
Other liabilities – Non-current 431 431
(` crore) General reserve
As at As at (i) Opening balance 27 1,423
March 31, 2020 March 31, 2019 (ii) Transfer to retained earnings - (1,396)
Operating lease liabilities - 413 27 27
- 413 Special Economic Zone re-investment reserve
Other liabilities – Current (i) Opening balance 994 1,578
(` crore) (ii) Transfer from retained earnings 2,947 2,750
As at As at (iii) Transfer to retained earnings (2,347) (3,334)
March 31, 2020 March 31, 2019 1,594 994
Advance received from customers 345 575 Retained earnings
Indirect taxes payable and other 2,874 2,526 (i) Opening balance 85,520 79,755
statutory liabilities
(ii) Transition impact of Ind AS 116 (357) -
Operating lease liabilities 2 60
(Refer note 9)
Others 62 74
3,283 3,235 (iii) Profit for the year 32,340 31,472
(iv) Remeasurement of defined employee (339) (41)
Operating lease liability of `462 crore has been reclassified to retained benefit plans
earnings pursuant to transition to Ind AS 116.

(` crore) (` crore)
Ĩ2ĩƫƫ 0%%(%/! ƫ"+.ƫ15ġ'ƫ+"ƫ!-1%05ƫ/$.!/ĵ - (15,992) Investment revaluation reserve
Ĩ2%ĩƫƫ 4,!*/!ƫ.!(0%*#ƫ0+ƫ15ġ'ƫ+"ƫ!-1%05ƫ - (45) (i) Opening balance 192 (84)
shares* (ii) Realised loss on equity shares carried - 1
(vii) Issue of bonus shares* - (86) at fair value through OCI
(viii) Realised loss on equity shares carried - (1) (iii) Change during the year (net) 604 275
at fair value through OCI 796 192
(ix) Transfer from Special Economic Zone 2,347 3,334 Cash flow hedging reserve (Refer note 8(j))
re-investment reserve (i) Opening balance 104 (71)
(x) Transfer from general reserve* - 1,396 (ii) Change during the year (net) (127) 175
(xi) Purchase of non-controlling interests (93) - (23) 104
119,418 99,792 Foreign currency translation reserve
(xii) Less: Appropriations (i) Opening balance 1,380 1,474
(a) Dividend on equity shares 31,896 10,085 (ii) Change during the year (net) 286 (94)
(b) Tax on dividend 5,738 1,339 1,666 1,380
(c) Transfer to capital redemption - 8 83,751 89,071
reserve*
(d) Transfer to Special Economic 2,947 2,750 *Refer note 8(l).
Zone re-investment reserve 12) Revenue recognition
(e) Transfer to statutory reserve 27 90
The Group earns revenue primarily from providing IT services, consulting and
78,810 85,520
business solutions. The Group offers a consulting-led, cognitive powered, integrated
Statutory reserve
portfolio of IT, business and engineering services and solutions.
(i) Opening balance 348 258
(ii) Transfer from retained earnings 27 90 Revenue is recognised upon transfer of control of promised products or services to
375 348 customers in an amount that reflects the consideration which the Group expects to
receive in exchange for those products or services.

ƫ đƫ !2!*1!ƫ".+)ƫ0%)!ƫ* ƫ)0!.%(ƫ* ƫ&+ƫ+*0.0/ƫ%/ƫ.!+#*%/! ƫ+*ƫ+10,10ƫ Revenue is measured based on the transaction price, which is the consideration,
basis measured by units delivered, efforts expended, number of transactions adjusted for volume discounts, service level credits, performance bonuses, price
processed, etc. concessions and incentives, if any, as specified in the contract with the customer.
Revenue also excludes taxes collected from customers.
ƫ đƫ !2!*1!ƫ.!(0! ƫ0+ƫü4! ƫ,.%!ƫ)%*0!**!ƫ* ƫ/1,,+.0ƫ/!.2%!/ƫ+*0.0/ƫ
where the Group is standing ready to provide services is recognised based Contract fulfilment costs are generally expensed as incurred except for certain
on time elapsed mode and revenue is straight lined over the period of software licence costs which meet the criteria for capitalisation. Such costs are
performance. amortised over the contractual period or useful life of the licence, whichever is less.
The assessment of this criteria requires the application of judgement, in particular
ƫ đƫ *ƫ.!/,!0ƫ+"ƫ+0$!.ƫü4! ġ,.%!ƫ+*0.0/Čƫ.!2!*1!ƫ%/ƫ.!+#*%/! ƫ1/%*#ƫ when considering if costs generate or enhance resources to be used to satisfy future
percentage-of-completion method (‘POC method’) of accounting with performance obligations and whether costs are expected to be recovered.
contract costs incurred determining the degree of completion of the
Contract assets are recognised when there is excess of revenue earned over billings
performance obligation. The contract costs used in computing the revenues
on contracts. Contract assets are classified as unbilled receivables (only act of
include cost of fulfilling warranty obligations.
invoicing is pending) when there is unconditional right to receive cash, and only
ƫ đƫ !2!*1!ƫ".+)ƫ0$!ƫ/(!ƫ+"ƫ %/0%*0ƫ%*0!.*((5ƫ !2!(+,! ƫ/+"03.!ƫ* ƫ passage of time is required, as per contractual terms.
manufactured systems and third party software is recognised upfront at the Unearned and deferred revenue (“contract liability”) is recognised when there is
point in time when the system / software is delivered to the customer. In cases billings in excess of revenues.
where implementation and / or customisation services rendered significantly
The billing schedules agreed with customers include periodic performance based
modifies or customises the software, these services and software are
payments and / or milestone based progress payments. Invoices are payable within
accounted for as a single performance obligation and revenue is recognised
contractually agreed credit period.
over time on a POC method.
In accordance with Ind AS 37, the Group recognises an onerous contract provision
ƫ đƫ !2!*1!ƫ".+)ƫ0$!ƫ/(!ƫ+"ƫ %/0%*0ƫ0$%. ƫ,.05ƫ$. 3.!ƫ%/ƫ.!+#*%/! ƫ0ƫ0$!ƫ when the unavoidable costs of meeting the obligations under a contract exceed the
point in time when control is transferred to the customer. economic benefits to be received.
ƫ đƫ $!ƫ/+(10%+*/ƫ+û!.! ƫ5ƫ0$!ƫ.+1,ƫ)5ƫ%*(1 !ƫ/1,,(5ƫ+"ƫ0$%. ġ,.05ƫ Contracts are subject to modification to account for changes in contract specification
equipment or software. In such cases, revenue for supply of such third party and requirements. The Group reviews modification to contract in conjunction with
products are recorded at gross or net basis depending on whether the Group the original contract, basis which the transaction price could be allocated to a new
is acting as the principal or as an agent of the customer. The Group recognises performance obligation, or transaction price of an existing obligation could undergo
revenue in the gross amount of consideration when it is acting as a principal a change. In the event transaction price is revised for existing obligation, a cumulative
and at net amount of consideration when it is acting as an agent. adjustment is accounted for.

The Group disaggregates revenue from contracts with customers by nature of Changes in contract assets are as follows:
services, industry verticals and geography.
(` crore)
Revenue disaggregation by nature of services is as follows:
(` crore) March 31, 2020 March 31, 2019
Year ended Year ended Balance at the beginning of the year 3,428 2,882
March 31, 2020 March 31, 2019
Revenue recognised during the year 13,548 11,404
Consultancy services 154,829 143,935
Sale of equipment and software licences 2,120 2,528 Invoices raised during the year (12,715) (10,893)
156,949 146,463 Translation exchange difference 228 35
Revenue disaggregation by industry vertical and geography has been included in
segment information (Refer note 19).
Changes in unearned and deferred revenue are as follows:
While disclosing the aggregate amount of transaction price yet to be recognised as
revenue towards unsatisfied (or partially satisfied) performance obligations, along (` crore)
with the broad time band for the expected time to recognise those revenues, the Year ended Year ended
Group has applied the practical expedient in Ind AS 115. Accordingly, the Group has March 31, 2020 March 31, 2019
not disclosed the aggregate transaction price allocated to unsatisfied (or partially
Balance at the beginning of the year 3,236 2,535
satisfied) performance obligations which pertain to contracts where revenue
recognised corresponds to the value transferred to customer typically involving time Revenue recognised that was included in the (2,421) (2,376)
and material, outcome based and event based contracts. unearned and deferred revenue balance at
the beginning of the year
Unsatisfied (or partially satisfied) performance obligations are subject to variability
due to several factors such as terminations, changes in scope of contracts, periodic Increase due to invoicing during the year, 2,618 2,996
revalidations of the estimates, economic factors (changes in currency rates, tax excluding amounts recognised as revenue
laws etc). The aggregate value of transaction price allocated to unsatisfied (or during the year
partially satisfied) performance obligations is `112,266 crore out of which 49.55% is Translation exchange difference 179 81
expected to be recognised as revenue in the next year and the balance thereafter. No
consideration from contracts with customers is excluded from the amount mentioned
above.

Reconciliation of revenue recognised with the contracted price is as follows: spend in immediate future to conserve resources and assess the impact that they
would have due to dependence of revenues from the impacted verticals. The Group
(` crore)
$/ƫ+*/% !.! ƫ/1$ƫ%),0ƫ0+ƫ0$!ƫ!40!*0ƫ'*+3*ƫ* ƫ2%((!ƫ1..!*0(5ċƫ+3!2!.Čƫ
Year ended Year ended the impact assessment of COVID-19 is a continuing process given the uncertainties
March 31, 2020 March 31, 2019 associated with its nature and duration.
Contracted price 158,977 148,649
ƫ $!ƫ.+1,ƫ$/ƫ0'!*ƫ/0!,/ƫ0+ƫ//!//ƫ0$!ƫ+/0ƫ1 #!0/ƫ.!-1%.! ƫ0+ƫ+),(!0!ƫ%0/ƫ
Reductions towards variable consideration (2,028) (2,186) performance obligations in respect of fixed price contracts and incorporated the
components %),0ƫ+"ƫ(%'!(5ƫ !(5/ƫĥƫ%*.!/! ƫ+/0ƫ%*ƫ)!!0%*#ƫ%0/ƫ+(%#0%+*/ċƫ1$ƫ%),0ƫ+1( ƫ
Revenue recognised 156,949 146,463 be in the form of provision for onerous contracts or re-setting of revenue recognition
in fixed price contracts where revenue is recognised on percentage-of-completion
The reduction towards variable consideration comprises of volume discounts, service basis. The Group has also assessed the impact of any delays and inability to meet
level credits, etc.
+*0.01(ƫ+))%0)!*0/ƫ* ƫ$/ƫ0'!*ƫ0%+*/ƫ/1$ƫ/ƫ!*##%*#ƫ3%0$ƫ0$!ƫ1/0+)!./ƫ
Impact of COVID-19 0+ƫ#.!!ƫ+*ƫ.!2%/! ƫ/ƫ%*ƫ(%#$0ƫ+"ƫ1..!*0ƫ.%/%/Čƫ%*2+'%*#ƫ+"ƫ"+.!ġ)&!1.!ƫ(1/!ƫ
While the Group believes strongly that it has a rich portfolio of services to partner etc., to ensure that revenue recognition in such cases reflect realisable values.
with customers, the impact on future revenue streams could come from 13) Other income
ƫ đƫ 0$!ƫ%*%(%05ƫ+"ƫ+1.ƫ1/0+)!./ƫ0+ƫ+*0%*1!ƫ0$!%.ƫ1/%*!//!/ƫ 1!ƫ0+ƫü**%(ƫ Dividend income is recorded when the right to receive payment is established.
resource constraints or their services no-longer being availed by their Interest income is recognised using the effective interest method.
customers Other income consists of the following:
ƫ đƫ ,.+(+*#! ƫ(+'ġ +3*ƫ/%010%+*ƫ.!/1(0%*#ƫ%*ƫ%0/ƫ%*%(%05ƫ0+ƫ !,(+5ƫ.!/+1.!/ƫ0ƫ
(` crore)
different locations due to restrictions in mobility
ƫ đƫ 1/0+)!./ƫ*+0ƫ%*ƫƫ,+/%0%+*ƫ0+ƫ!,0ƫ(0!.*0!ƫ !(%2!.5ƫ)+ !/ƫ1/%*#ƫ!1.! ƫ March 31, 2020 March 31, 2019
+. !.(!//ƫ+.',!/ Interest income 3,562 2,762
ƫ đƫ 1/0+)!./ƫ,+/0,+*%*#ƫ0$!%.ƫ %/.!0%+*.5ƫ/,!* ƫ 1!ƫ0+ƫ$*#!ƫ%*ƫ,.%+.%0%!/ Dividend income 10 18
The Group has assessed that customers in Retail, Travel, Transportation and Net gain on investments carried at fair value 200 427
Hospitality, Energy and Manufacturing verticals are more prone to immediate through profit or loss
impact due to disruption in supply chain and drop in demand while customers in Net gain on sale of investments other than 14 -
*'%*#Čƫ%**%(ƫ!.2%!/ƫ* ƫ */1.*!ƫ3+1( ƫ.!ġ,.%+.%0%/!ƫ0$!%.ƫ %/.!0%+*.5ƫ equity shares carried at fair value through OCI

(` crore) of the changes to the asset ceiling and the return on plan assets (excluding interest),
Year ended Year ended is reflected immediately in the balance sheet with a charge or credit recognised in
March 31, 2020 March 31, 2019 other comprehensive income in the period in which they occur. Past service cost,
Net gain / (loss) on disposal of property, 46 84 both vested and unvested, is recognised as an expense at the earlier of
plant and equipment (a) when the plan amendment or curtailment occurs; and (b) when the entity
recognises related restructuring costs or termination benefits.
Net foreign exchange gain / (loss) 727 967
Rent income 1 6 The retirement benefit obligations recognised in the balance sheet represents the
Other income 32 47 present value of the defined benefit obligations reduced by the fair value of scheme
4,592 4,311 assets. Any asset resulting from this calculation is limited to the present value of
available refunds and reductions in future contributions to the scheme.
Interest income comprise: The Group provides benefits such as gratuity, pension and provident fund (Company
*0!.!/0ƫ+*ƫ*'ƫ(*!/ƫ* ƫ*'ƫ !,+/%0/ 519 188 managed fund) to its employees which are treated as defined benefit plans.
Interest on financial assets carried at 613 576
Defined contribution plans
amortised cost
Interest on financial assets carried at fair 1,878 1,838 Contributions to defined contribution plans are recognised as expense when
value through OCI employees have rendered services entitling them to such benefits.
Other interest (including interest on tax 552 160 The Group provides benefits such as superannuation, provident fund (other than
refunds) Company managed fund) and foreign defined contribution plans to its employees
which are treated as defined contribution plans.
Dividend income comprises:
Short-term employee benefits
Dividend from mutual fund units and other 10 18
investments All employee benefits payable wholly within twelve months of rendering the
service are classified as short-term employee benefits. Benefits such as salaries,
14) Employee benefits
wages etc. and the expected cost of ex-gratia are recognised in the period in which
Defined benefit plans the employee renders the related service. A liability is recognised for the amount
For defined benefit plans, the cost of providing benefits is determined using the expected to be paid when there is a present legal or constructive obligation to pay
Projected Unit Credit Method, with actuarial valuations being carried out at each this amount as a result of past service provided by the employee and the obligation
balance sheet date. Remeasurement, comprising actuarial gains and losses, the effect can be estimated reliably.

TCS Annual Report 2019-20

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Consolidated Balance Sheet

ASSETS Current assets

Non-current assets Inventories 10(e) 5 10

Trade receivables 8(b) 74 95 Income tax assets (net) 8 1,853

TCS Annual Report 2019-20 Consolidated Financial Statements I 175

TCS Annual Report 2019-20 Consolidated Financial Statements I 176

TCS Annual Report 2019-20 Consolidated Financial Statements I 177

B. OTHER EQUITY (` crore)

TCS Annual Report 2019-20 Consolidated Financial Statements I 178

TCS Annual Report 2019-20 Consolidated Financial Statements I 179

NOTES FORMING PART OF CONSOLIDATED FINANCIAL STATEMENTS

Mumbai, April 16, 2020

TCS Annual Report 2019-20 Consolidated Financial Statements I 180

TCS Annual Report 2019-20 Consolidated Financial Statements I 181

TCS Annual Report 2019-20 Consolidated Financial Statements I 182

TCS Annual Report 2019-20 Consolidated Financial Statements I 183

TCS Annual Report 2019-20 Consolidated Financial Statements I 184

TCS Annual Report 2019-20 Consolidated Financial Statements I 185

TCS Annual Report 2019-20 Consolidated Financial Statements I 186

TCS Annual Report 2019-20 Consolidated Financial Statements I 187

TCS Annual Report 2019-20 Consolidated Financial Statements I 188

TCS Annual Report 2019-20 Consolidated Financial Statements I 189

TCS Annual Report 2019-20 Consolidated Financial Statements I 190

TCS Annual Report 2019-20 Consolidated Financial Statements I 191

Loans receivables – Current Others 11 -

(` crore) 1,184 738

TCS Annual Report 2019-20 Consolidated Financial Statements I 192

TCS Annual Report 2019-20 Consolidated Financial Statements I 193

ƫ $!ƫ+. ƫ+"ƫ%.!0+./ƫ$2!ƫ+*/0%010! ƫƫ%/'ƫ *#!)!*0ƫ+))%00!!ƫĨ ĩƫ0+ƫ

Impairment in value of investments (20) -

TCS Annual Report 2019-20 Consolidated Financial Statements I 195

TCS Annual Report 2019-20 Consolidated Financial Statements I 196

TCS Annual Report 2019-20 Consolidated Financial Statements I 197

TCS Annual Report 2019-20 Consolidated Financial Statements I 198

TCS Annual Report 2019-20 Consolidated Financial Statements I 199

TCS Annual Report 2019-20 Consolidated Financial Statements I 200

565 565 Issued during the year - - 191,42,87,591 192

Issued, Subscribed and Fully paid up Shares extinguished on - - (7,61,90,476) (8)

TCS Annual Report 2019-20 Consolidated Financial Statements I 201

TCS Annual Report 2019-20 Consolidated Financial Statements I 202

TCS Annual Report 2019-20 Consolidated Financial Statements I 203

TCS Annual Report 2019-20 Consolidated Financial Statements I 204

TCS Annual Report 2019-20 Consolidated Financial Statements I 205

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TCS Annual Report 2019-20 Consolidated Financial Statements I 206

TCS Annual Report 2019-20 Consolidated Financial Statements I 207

TCS Annual Report 2019-20 Consolidated Financial Statements I 208

TCS Annual Report 2019-20 Consolidated Financial Statements I 209

TCS Annual Report 2019-20 Consolidated Financial Statements I 210

TCS Annual Report 2019-20 Consolidated Financial Statements I 211

TCS Annual Report 2019-20 Consolidated Financial Statements I 212

TCS Annual Report 2019-20 Consolidated Financial Statements I 213

TCS Annual Report 2019-20 Consolidated Financial Statements I 214

TCS Annual Report 2019-20 Consolidated Financial Statements I 215

TCS Annual Report 2019-20 Consolidated Financial Statements I 216

TCS Annual Report 2019-20 Consolidated Financial Statements I 217

TCS Annual Report 2019-20 Consolidated Financial Statements I 218

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