Annual Report 2018-2019 - Tata Consultancy Services

1 About TCSTCS is an IT Services , consulting and business solutions provider that has been partnering with the world s largest businesses in their transformation journeys for the last fifty years. TCS offers a consulting-led, cognitive powered, integrated portfolio of business, technology and engineering Services and solutions. This is delivered through its unique, Location Independent Agile delivery model, a benchmark of excellence in software development. A part of the Tata group, India s largest multinational business group, TCS has over 420,000 of the world s best-trained consultants in 50 countries. The company generated consolidated revenues of US $20 billion for the year ended March 31, 2019 and is listed on the BSE (formerly Bombay Stock Exchange) and the NSE (National Stock Exchange) in India. TCS proactive stance on climate change and award winning work with communities across the world have earned it a place in leading sustainability indices such as the Dow Jones Sustainability Index (DJSI), MSCI Global Sustainability Index and the FTSE4 Good Emerging Annual General Meeting will be held on Thursday, June 13, 2019 at Birla Matushri Sabhagar, Sir Marg, New Marine Lines, Mumbai 400 020, at 3:30 Towards preserving our environment, printed copies of the Annual Report will not be distributed at the Annual General 2018 Dawn of Business Annual Report themesIn last year s Report (theme.)

2 Dawn of Business ), we had discussed the Business thought leadership framework, its attributes, the enabling technologies and the investments TCS had made over the years, that have positioned us very well to partner customers in their transformation year s theme is Growth and Transformation with Business In the ensuing pages, we explore how customers are embracing the Business thought leadership framework, the nature of their growth and transformation initiatives, the role of enterprise agile, and how our participation in those programs is transforming our own business, and powering our longer term 2017 Reimagining the EnterpriseFY 2016 Shaping the FutureFY 2015 Default is DigitalFY 2014 One TCS2019 Awards & RecognitionTCS is a strategic partner of the World Economic Forum(WEF) and hosts an exclusive Global Reception during the Annual meeting at Davos, that brings together the foremost leaders from business, government, academia, media and civil society.

3 Additionally, TCS and WEF have partnered on the Closing the Skills Gap initiative, and secured commitments to reskill million people towards the fourth industrial is the official partner to 12 marathons and running events across the world, in major cities like New York, London, Singapore, Amsterdam, Mumbai and Canberra. A community of 3,300 of TCS clients and 10,400 of its employees participated in these races in Summits in North America, Europe and Asia Pacific are invite-only events that bring together top executives from leading global corporations, and experts from different fields to discuss the profound business, geo-political, technology and leadership trends that are shaping our Growing Brand of the Decade in IT Services *#1- Brand Finance 2019 IT Services RankingsTCS Innovation Forums, organized in London, New York, Sao Paulo and Tokyo, provide opportunities for business leaders, technology leaders, academicians and industry experts to come together to exchange ideas, learn about the latest in the enterprise technology landscape, share industry best practices and network with other attendees.

4 #1IN CUSTOMERSATISFACTION2018/19 EUROPEW hitelane ResearchTCS Safe Harbor ClauseCertain statements in this release concerning our future prospects are forward-looking statements. Forward-looking statements by their nature involve a number of risks and uncertainties that could cause actual results to differ materially from market expectations. These risks and uncertainties include, but are not limited to, our ability to manage growth, intense competition among global IT Services companies, various factors which may affect our profitability, such as wage increases or an appreciating Rupee, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on cross-border movement of skilled personnel, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which TCS has made strategic investments.

5 Withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies outside India, unauthorized use of our intellectual property and general economic conditions affecting our industry . TCS may, from time to time, make additional written and oral forward-looking statements, including our reports to shareholders. These forward-looking statements represent only the Company s current intentions, beliefs or expectations, and any forward-looking statement speaks only as of the date on which it was made. The Company assumes no obligation to revise or update any forward-looking of Directors .. 02 Management team .. 03 Letter from the Chairman .. 04 Letter from the CEO .. 06 Performance 09 The Year Gone by .. 10 Business Adoption and Impact.

6 13 Thematic SectionPanel Discussion: N G Subramaniam, V Ramakrishnan and Krishnan Ramanujam .. 14 Business Story: KLM .. 17 Business Story: AGL .. 18 Business Story: Bayer .. 19Q&A: S Sukanya .. 20 Business Story: Home Depot .. 22 Business Story: Nissan .. 23 Business Story: Financial Inclusion .. 24 Notice .. 25 Directors Report .. 36 Management Discussion and Analysis .. 61 Corporate Governance Report .. 76 Corporate Sustainability Report .. 94 Business Responsibility Report .. 100 Awards and Accolades .. 105 ContentsConsolidated Financial StatementsIndependent Auditors Report .. 106 Consolidated Balance Sheet.. 114 Consolidated Statement of Profit and Loss .. 115 Consolidated Statement of Changes in Equity .. 116 Consolidated Statement of Cash Flows .. 118 Notes forming part of the Consolidated Financial 119 Unconsolidated Financial Statements Independent Auditors Report .

7 174 Balance Sheet .. 184 Statement of Profit and Loss .. 185 Statement of Changes in Equity .. 186 Statement of Cash Flows .. 188 Notes forming part of the Financial Statements .. 189 Statement under section 129 of the Companies Act, 2013 relating to Subsidiary Companies .. 238 Glossary .. 240 TCS Business Thought Leadership FrameworkEmbracing greater segmentation and responding to individual transactions, customized for a single customer in a single tapping into the capabilities and resources of partners and competitors through technology platforms, to influence their entire value and supply Mass PersonalizationLeveragingEcosystemsIntel ligentCloudAgileAutomatedCreating true value propositions that deliver on customer demands for the best products,world class Services , instantaneous delivery, andincredible price to threats and delivering new capabilities much faster.

8 By changing the traditional risk mitigation mindset to that of embracing risk and adapting and transforming ValueEmbracingRiskBoard of DirectorsFrom left to rightDr Ron SommerIndependent DirectorAman MehtaIndependent DirectorKeki M MistryIndependent DirectorDon CallahanIndependent DirectorDr Pradeep Kumar KhoslaIndependent DirectorHanne Birgitte Breinbjerg SorensenIndependent DirectorN G SubramaniamChief Operating Officer and Executive DirectorAarthi SubramanianDirectorN ChandrasekaranChairmanO P BhattIndependent DirectorRajesh GopinathanChief Executive Officer and Managing Director02 | Board of DirectorsMilind LakkadManagement Team | 03 Management Team CorporateBusiness HeadsRavi ViswanathanMadhav AnchanSurya KantK Ananth KrishnanRajendra MoholkarChief Executive Officerand Managing DirectorChief Marketing OfficerChief Financial OfficerGeneral CounselChief Operating Officerand Executive DirectorChief Technology OfficerGlobal HeadHuman ResourcesCompany SecretaryNorth America,UK and EuropeK KrithivasanSusheel VasudevanSuresh MuthuswamiDebashis GhoshKrishnan RamanujamKamal BhadadaBanking, Financial Services and InsuranceManufacturing and UtilitiesBFSI PlatformsShankar NarayananRetail, Travel andConsumer ProductsLife Sciences, Healthcare and Public ServicesCommunication, Mediaand Information ServicesBusiness and Technology ServicesRajesh Gopinathan V RamakrishnanN G Subramaniam04 | Letter from the ChairmanLetter from the ChairmanFor a business that has navigated technology change over the last five decades.

9 The ups and downs of short term economic cycles become insignificant blips in the broader sweep of history. Your Company has shown itself to be immensely entrepreneurial, agile, adaptive and innovative over the years, and these attributes will continue to serve it well in the years , geopolitical events threaten to drag down major economies and disrupt global trade and commerce. At times like this, it is more important than ever, to stay close to the customer. In the last downturn, TCS customer centric philosophy and modular organization structure allowed it to work closely with customers, and be agile in responding to their needs and reacting to events on the ground. Today, thanks to the differentiated capabilities that your Company steadily invested in building up over the last decade, and the innovative, business-centric solutions it is called upon by its customers to provide today, it is even more deeply embedded in their businesses, and is central to their growth and transformation initiatives.

10 These deep relationships, the broad and diversified global footprint, spanning all major markets and industries, and its robust financials makes your Company s business very resilient and well positioned to weather any storms a business that has navigated technology change over the last five decades, the ups and downs of short term economic cycles become insignificant blips in the broader sweep of history. Your Company has shown itself to be immensely entrepreneurial, agile, adaptive and innovative over the years, and these attributes will continue to serve it well in the years ahead. As enterprises become more technology-defined, they need more than ever before, a partner like TCS, who understands their business very well and can bring to bear the power of new technologies to craft innovative solutions that give them the differentiation they need to thrive in a Business world.