1) Corporate information
Tata Consultancy Services Limited (referred to as "TCS
Limited" or "the Company") provides IT services, consulting
and business solutions and has been partnering with many
of the world's largest businesses in their transformation
journeys. The Company offers a consulting-led, cognitive
powered, integrated portfolio of IT, business and
engineering services and solutions. This is delivered
through its unique Location-Independent Agile delivery
model recognised as a benchmark of excellence in software
development.
The Company is a public limited company incorporated
and domiciled in India. The address of its corporate office
is TCS House, Raveline Street, Fort, Mumbai- 400001. As
at March 31, 2025, Tata Sons Private Limited, the holding
company owned 71.74% of the Company's equity share
capital.
The Board of Directors approved the standalone financial
statements for the year ended March 31, 2025 and
authorised for issue on April 10, 2025.
2) Statement of compliance
These standalone financial statements have been prepared
in accordance with the Indian Accounting Standards
(referred to as "Ind AS") as prescribed under section 133 of
the Companies Act, 2013 read with the Companies (Indian
Accounting Standards) Rules as amended from time to
time.
3) Basis of preparation
These standalone financial statements have been prepared
on historical cost basis except for certain financial
instruments and defined benefit plans which are measured
at fair value or amortised cost at the end of each reporting
period. Historical cost is generally based on the fair value of
the consideration given in exchange for goods and services.
Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.
All assets and liabilities have been classified as current and
non-current as per the Company's normal operating cycle.
Based on the nature of services rendered to customers
and time elapsed between deployment of resources
and the realisation in cash and cash equivalents of the
consideration for such services rendered, the Company has
considered an operating cycle of 12 months.
The statement of cash flows has been prepared under
indirect method, whereby profit or loss is adjusted for the
effects of transactions of a non-cash nature, any deferrals
or accruals of past or future operating cash receipts or
payments and items of income or expense associated
with investing or financing cash flows. The cash flows from
operating, investing and financing activities of the Company
are segregated. The Company considers all highly liquid
investments that are readily convertible to known amounts
of cash and which are subject to an insignificant risk of
changes in value to be cash equivalents.
These standalone financial statements have been prepared
in Indian Rupee (?) which is the functional currency of the
Company. Foreign currency transactions are recorded at
exchange rates prevailing on the date of the transaction.
Foreign currency denominated monetary assets and
liabilities are retranslated at the exchange rate prevailing
on the balance sheet dates and exchange gains and losses
arising on settlement and restatement are recognised in
the statement of profit and loss. Non-monetary assets and
liabilities that are measured in terms of historical cost in
foreign currencies are not retranslated.
The material accounting policy information related to
preparation of the standalone financial statements have
been discussed in the respective notes.
4) Use of estimates and judgements
The preparation of standalone financial statements
in conformity with the recognition and measurement
principles of Ind AS requires management of the Company
to make estimates and judgements that affect the reported
balances of assets and liabilities, disclosures of contingent
liabilities as at the date of standalone financial statements
and the reported amounts of income and expenses for the
periods presented.
Estimates and underlying assumptions are reviewed on
an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimates are revised
and future periods are affected.
The Company uses the following critical accounting
judgements, estimates and assumptions in preparation of
its standalone financial statements:
(a) Revenue recognition
Revenue for fixed-price contracts is recognised using
percentage-of-completion method. The Company
estimates the future cost-to-completion of the
contracts which is used to determine degree of
completion of the performance obligation.
The Company exercises judgement for identification of
performance obligations, determination of transaction
price, ascribing the transaction price to each distinct
performance obligation and in determining whether
the performance obligation is satisfied at a point in
time or over a period of time. These judgements
have been explained in detail under the revenue
recognition note (Refer note 10).
(b) Useful lives of property, plant and equipment
The Company reviews the useful life of property,
plant and equipment at the end of each reporting
period. This reassessment may result in change in
depreciation expense in future periods (Refer note
8(a)).
(c) Impairment of investments in subsidiaries
The Company reviews its carrying value of investments
carried at cost (net of impairment, if any) annually,
or more frequently when there is indication for
impairment. If the recoverable amount is less than its
carrying amount, the impairment loss is accounted for
in the statement of profit and loss.
(d) Fair value measurement of financial instruments
When the fair value of financial assets and financial
liabilities recorded in the balance sheet cannot be
measured based on quoted prices in active markets,
their fair value is measured using valuation techniques
including the Discounted Cash Flow model. The inputs
to these models are taken from observable markets
where possible, but where this is not feasible, a
degree of judgement is required in establishing fair
values. Judgements include considerations of inputs
such as liquidity risk, credit risk and volatility. Changes
in assumptions about these factors could affect the
reported fair value of financial instruments.
(e) Impairment of financial assets (other than at fair
value)
Measurement of impairment of financial assets
require use of estimates, which have been explained
in the note on financial assets, financial liabilities and
equity instruments, under impairment of financial
assets (other than at fair value) (Refer note 6).
(f) Deferred tax assets
A deferred tax asset is recognised to the extent
that it is probable that future taxable profit will be
available against which the deductible temporary
differences and tax losses can be utilised. Accordingly,
the Company exercises its judgement to reassess the
carrying amount of deferred tax assets at the end of
each reporting period.
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