PROJECT REPORT

“FINANCIAL STATEMENT ANALYSIS OF TATA CONSULTANCY

SERVICES PVT LTD”

Submitted to

UNIVERSITY OF CALICUT

Submitted in partial fulfillment for the requirement of the award for the degree in bachelor of
commerce with computer application (2021-2024)

Submitted by,

SANU SAHAD P.P

SIXTH SEMESTER BCOM (CA)

Register no: AZAVBCM033

Under the guidance of

Dr. DHANYA KA

ASSISTANT PROFESSOR & HOD

Department of commerce and management studies Amal College Of Advanced Studies,

Santhigramam, myladi

(Aided by Government of kerala & Affiliated to university of Calicut)

MARCH 2024
 DECLARATION

I SANU SAHAD P.P declare that this project entitled “FINANCIAL STATEMENT
ANALYSIS OF TATA CONSULTANCY SERVICES PVT LTD” has been prepared by
me under the supervision of Dr. DHANYA KA, Assistant professor, department of commerce
and management studies, Amal college of advanced studies, Myladi, Nilambur.

I also hereby that this project work has not been submitted by me fully or partially for the award
of any degree, diploma, title or recognition earlier

PLACE: Nilambur NAME: SANU SAHAD P.P

DATE: Reg no: AZAVBCM033

 AMAL COLLEGE OF ADVANCED STUDIES

DEPARTMENT OF COMMERCE AND MANAGEMENT STUDIES

Santhigramam, myladi, Eranhimangad P.O, Nilambur, Malappuram District

Tele-679329, Tele:04931-207055, 310485, Email: [email protected]

Website: www.amalcollege.org

CERTIFICATE

This is to certify that the project report entitled “FINANCIAL STATEMENT

ANALYSIS OF TATA CONSULTANCY SERVICES PVT LTD” is an authentic record
of the work carried out by SANU SAHAD PP in the department of commerce and management
studies, Amal college advanced studies, Nilambur, under the guidance and supervision and no part
thereof has been presented earlier for the award of any degree, diploma fellowship or associateship
etc.

Place: Nilambur

Date: Name and signature of the supervisor

Countersigned by: Dr. DHANYA KA

Assistant professor and Head

Department of commerce and management studies, Amal

college of advanced studies, Nilambur, 679329

 ACKNOWLEDEMENT

I express my sincere thanks to GOD, the most gracious and merciful, I am obliged and thankful
to Dr. DHANYA KA, Assistant professor & HOD, department of commerce and management
studies for her kind corporation, valuable guidance and constant encouragement in getting this
work completed. I am delighted in using this opportunity to express my sincere thanks to her
for her constructive criticisms and creative suggestions from this view.

I express deep gratitude to Dr. ZACARIA TV, principal, Amal college of Advance studies,
Nilambur, and all other staff of college for their valuable support towards the completion of
this work. I am also indebted to all the faculty member of the department of commerce and
management studies for their sincere cooperation and assistance.

I convey my sincere thanks to all the respondents who were patient and cooperative in
providing the requisite information. My special thanks to my beloved parents, family members,
and all my friends who gave their careful attention and support throughout my project work.
Above all the grace of GOD for this leads me to complete my project.

SANU SAHAD PP

Reg no: AZAVBCM033

 CONTENTS

CHAPTER TITLE PAGE NO

NO.

1 INTRODUCTION 1-4

2 REVIEW OF LITERATURE 5-12

3 THEORETICAL FRAMEWORK 13-26

4 DATA ANALYSIS AND 27-46

INTERPRETATION

5 FINDINGS, SUGGESTIONS, AND 47-50

CONCLUSION

BIBLIOGRAPHY 51-52

APPENDIX
 LIST OF THE TABLES

TABLE NO TITLE OF THE TABLE PAGE NO

4.1 Current ratio 27

4.2 Liquid ratio 28

4.3 Absolute liquid ratio 29

4.4 Debt equity ratio 30

4.5 Proprietary ratio 31

4.6 Solvency ratio 32

4.7 Fixed asset to Networth 33

4.8 Total asset turnover ratio 34

4.9 Fixed asset turnover ratio 35

4.10 Current asset turnover ratio 36

4.11 Working capital turnover ratio 37

4.12 Net profit ratio 38

4.13 Operating ratio 39

4.14 Operating profit ratio 40

4.15 Return on share holders fund 41

4.16 Earning per share 42

4.17 Price-earning ratio 43

4.18 Dividend payout ratio 44

4.19 Trend on net profit 45

4.20 Trend on sales 46

 LIST OF THE CHART

CHART NO TITLE OF THE CHART PAGE NO

4.1 Current ratio 27

4.2 Liquid ratio 28

4.3 Absolute liquid ratio 29

4.4 Debt equity ratio 30

4.5 Proprietary ratio 31

4.6 Solvency ratio 32

4.7 Fixed asset to Networth 33

4.8 Total asset turnover ratio 34

4.9 Fixed asset turnover ratio 35

4.10 Current asset turnover ratio 36

4.11 Working capital turnover ratio 37

4.12 Net profit ratio 38

4.13 Operating ratio 39

4.14 Operating profit ratio 40

4.15 Return on share holders fund 41

4.16 Earning per share 42

4.17 Price-earning ratio 43

4.18 Dividend payout ratio 44

4.19 Trend on net profit 45

4.20 Trend on sales 46

INTRODUCTION

The analysis of financial statements is the process of evaluating the relationship between parts
of the financial statements to obtain a better understanding of the firms’ performance and
position. Financial statements are annual documents prepared by the organization for periodical
review on the progress by the management and deal with the status of investment in the
organization and results achieved during the period under review. Finance is the lifeblood of
every business enterprise. It is one of the basic foundations of all kinds of economic activities.
Business needs money to make more money it is possible only when it is properly managed.
The objective of financial management is the maximization of profit. To achieve this objective,
various important decisions are taken by the manager. Analysis of financial performance is
essential for making a business decision.

“A study on financial performance analysis of TCS Ltd” The project that aims to evaluate the
financial health and performance of one of the leading IT services, consulting, and business
solutions providers in the world. The project will use various financial ratios and statistical
techniques to measure and compare the profitability, liquidity, solvency, efficiency, and growth
potential of TCS over a period of five financial years from 2019 to 2023. The project will also
provide insights into the strengths, weaknesses, opportunities, and threats of TCS as a financial
entity.

Tata Consultancy Services Ltd. (TCS) is one of the leading IT services, consulting, and
business solutions providers in the world. It offers a range of services and solutions across
various domains and industries, such as banking, insurance, retail, telecom, manufacturing,
healthcare, and government. TCS has a global presence with operations in 46 countries and
over 500,000 employees

The objective of this study is to analyze the financial performance of TCS for the period of five
financial years from 2019 to 2023. The study will use various financial ratios, such as
profitability ratios, liquidity ratios, solvency ratios, turnover ratios, and market test ratios, to
measure and compare the financial performance of TCS over the years.The study will provide
insights into the strengths, weaknesses, opportunities, and threats of TCS as a financial entity.

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STATEMENT OF THE PROBLEM

The IT sector is one of the most dynamic and competitive sectors in the global economy, and
it requires constant innovation, adaptation, and efficiency to survive and thrive. TCS Ltd. is
one of the leading IT companies in India and the world, and it faces various challenges and
opportunities in the changing business environment. Therefore, it is essential to evaluate the
financial performance of TCS Ltd. using various financial ratios, and to compare it with its
peers and industry standards. This will help to identify the strengths, weaknesses, opportunities,
and threats of TCS Ltd.

The financial statements reveal a true and fair view of the financial position of a concern. The
analysis of financial statement is a process of evaluating the relationship between the
component parts of financial statement to obtain a better understanding of the firm’s position
and performance. To evaluate the company’s profitability, liquidity, efficiency and solvency
using the financial statements. To take certain important decisions for their business various
users like managements of the companies, bankers, investors and creditors etc. uses the
accounting ratios for analyzing the financial position.

OBJECTIVES OF THE STUDY

➢ To examine the liquidity position of the company

➢ To examine the solvency position of the company
➢ To examine the profitability position of the company
➢ To examine the market performance of the company
➢ To calculate turnover ratios

SCOPE AND SIGNIFICANCE OF THE STUDY

The scope of this study on the financial statement analysis of TCS Ltd encompasses a detailed
examination of the company's financial records, including balance sheets, income statements.
The analysis will specifically focus on various key financial ratios such as market test ratio,
liquidity ratio, solvency ratio, turnover ratios, and profitability ratios. The market test ratio will
help assess the company's market competitiveness, while liquidity ratios will provide insights
into TCS's short-term financial health. Solvency ratios will gauge the company's ability to meet
long-term obligations, and turnover ratios will offer an understanding of its operational

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efficiency. Lastly, profitability ratios will be scrutinized to evaluate the overall financial
performance. This study aims to distill these financial metrics into a comprehensive overview,
shedding light on TCS Ltd's financial strength and providing practical insights for stakeholders,
investors, and decision-makers.

RESEARCH METHODOLOGY

RESEARCH DESIGN

The study of financial Statement analysis of TCS Limited is analytical and descriptive in nature
using mainly secondary data. Secondary data has been collected from the company records,
various magazines, journals, reports, and websites of the company.

SAMPLE DATA

the sample taken in the duration of march 2019 to 2023

DATA COLLECTION

the data were collected only from secondary sources.

➢ Annual reports published by the company

➢ Company website
➢ Publications, Journals, and other official records
➢ Theoretical part from the reference books

PERIOD OF THE STUDY

The study was conducted during the period of three weeks (21 days)

TOOLS OF ANALYSIS AND PRESENTATION

❖ Liquid ratios
❖ Solvency ratios
❖ Activity ratios

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 ❖ Profitability ratios
❖ Market test ratios

LIMITATIONS OF THE STUDY

➢ The study is based on secondary data, which may not be accurate, reliable
➢ Accuracy of the result with the accuracy of the secondary data
➢ The data collected for the study was historic in nature
➢ The study is for a period of five years only
➢ The ratio is calculated from past financial statements and these are not
indicators of the future

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1) Pavithra (2013) To investigate FINANCIAL PERFORMANCE OF TATA STEEL
LIMITED”. Financial Performance analysis means establishing a relationship between the
items in the balance sheet and profit and loss account for determining the financial strength and
weakness of the firm. The study entitled to know the financial position of the Company helps
in making sound decisions by analyzing the recent trend. This study aims at analyzing the
financial performance of Tata Steel Ltd. Using the framework of comparative balance sheet
and ratio analysis. The basic objective of the study is to evaluate and judge the performance of
Tata Steel during the study period. To determine the firm's efficiency an attempt is made to
measure the solvency position of the firm

2) Ghimire R (2013) This study gives a quick overview of the financial efficiency of nonlife
insurance industries in Nepal. The main goal is to assess the stability of the 16 private non-life
insurers using various financial ratios. The study is based on data from the annual reports of
these insurers from 2007 to 2011.The analysis of sixteen different ratios shows a mixed picture
of financial efficiency among the insurers. The paper notes that most legal requirements have
been met by these insurers. Some ratios, like Expenses ratio, Return on equity, Return on assets,
Retention Ratios, Gross premium to equity ratio, Net premium to equity ratio, and Return on
Capital, improved during the study period. On the other hand, ratios like Investment Ratio,
Investments to total assets ratio, and Capital to liabilities ratio declined over the same period.
Claims ratio and Combined ratio performance showed fluctuations, and the Profit Ratio to
Underwriting Ratio trend slightly decreased .Overall the financial soundness of the industry
has been gradually improving. The paper suggests that regulators should use key financial
indicators to evaluate insurer performance. It concludes that maintaining the financial health of
the insurance industry is a challenging task for regulatory agencies, even though the industry's
contribution to the economy and society is significant.

3) Dr. Meenakshi Anand (2014) The paper focuses on the financial strength of the textile
sector in India. And to know that up to what extent textile sector has used their available
resources effectively. For this purpose profitability, liquidity and solvency position of textile
companies has examined. In this paper comparative ratio analysis technique has used to know
the financial soundness of textile companies. The result shows the profitability margins has
slightly different due to volatile textiles market and volatility in raw material prices. The
liquidity and solvency position is almost same in all the textile companies.

5
4) Ramanan, R (2015) In this study looks at how well Reliance Industries Limited (RIL),
India's biggest private company, is doing financially over five years, from 2009-2010 to 2013-
2014. The goal is to understand the company's financial position, track changes, and predict
future results using Profit and Loss accounts and Balance sheets. The study uses ratios and
trend analysis to figure out if the company is making a profit, maintaining enough money for
operations, and how its dividends are growing. The ratios used focus on solvency, turnover,
and profitability. The analysis shows that RIL performed well in 2010 and 2011, but faced
challenges in 2012 and 2013 due to a recession in European countries impacting exports.
However, in 2014, with a slight improvement in the global economy, customer demand for
retail products and oil exports increased, positively impacting the company's performance.

5) ATTAH KUMAH E (2015) Study on the financial condition of Chennai Petroleum Ltd.
involves analyzing its financial statements, which are official records showing the company's
financial activities over time. These statements provide a snapshot of the company's financial
situation in both the short and long term. Executives and investors often use financial
statements to assess a company's overall health and performance. This study uses ratio analysis
to evaluate the strengths and weaknesses of Chennai Petroleum Ltd., using ratios as
benchmarks for efficiency. The analysis covers liquidity, profitability, and efficiency over the
study period through comparative balance sheet analysis. Various aspects of the company's
financial performance are assessed using multi-discriminant working capital analysis,
including Y-Score analysis, Z-Score analysis, and trend analysis. The study also involves
making comparisons between ratios during different periods and projecting the company's
financial performance using trend analysis. The keywords associated with this study include
Financial Performance, Petroleum Corporation, Ratio Analysis, Y-Score and Z-Score analysis,
and trend analysis

6) Mathur, S., Agarwal, K., & Shivam Mathur, C. (2016) To investigate and understand the
financial health of two choose automobile companies in India, I focused on their profitability
over the last three years (2012-2014). The selected companies are Maruti Suzuki and Tata
Motors. The automobile industry in India has been growing due to increased demand, rising
incomes, an expanding middle class, a young population, skilled manpower, and advancing
technology. Profit is crucial for any business to survive and thrive in the long run. Profitability,
in simple terms, means the ability to make a profit from all the business activities efficiently.
This project uses secondary data and various ratios to analyze the financial position of Maruti
Suzuki and Tata Motors. The main goal is to understand how profitable these companies have
been and to track any changes in their profitability over the specified three-year period

6
7) Jan, s (2016) To investigate the competitive position of Idea Cellular and Reliance Telecom
in the Indian telecommunications sector, this study conducts a comparative analysis of their
financial statements. The Indian telecom industry is dynamic and highly competitive, requiring
companies to adopt various strategies for long-term survival. The study focuses on assessing
the financial soundness of these companies by analyzing key financial factors such as liquidity,
turnover, profit, and asset utilization. The belief is that a firm's performance is influenced by
these factors, and their interrelation can be found in the profit and loss account and balance
sheet. Ratios, which are indicators, are commonly used to measure financial health. In
summary, this empirical study aims to identify the key financial attributes of telecom
companies, specifically Idea Cellular and Reliance Telecom, operating in one of the most
dynamic sectors of the Indian economy. The investigation is based on an analysis of their
financial statements to understand their competitive positions and overall financial soundness.

8) Vijayalakshmi& Sowndharya K (2017) A Study on Financial Performance Analysis of

Bharti Airtel Limited Financial performance is done to evaluate capability, stability and
profitability of the company. Financial analysis helps investors to appraise whether they should
invest in a particular company or not. The main objective of this study is to know the short term
and long term financial position of the company and to know the profit level of the company.
It is analyzed using short term, long term and profitability ratios for the period 2011-2016,
based on the secondary data that is balance sheet and profit/loss account. The company has to
stabilize its income without much increase in operating expenses

9) Jegadeeshwaran,M & Basuvaraj,M (2018) To investigate the financial health of selected

automobile companies in India, this study aims to analyze their profitability and solvency
positions through the application of ratio analysis, descriptive statistics, and regression
techniques. The primary discovery of the research highlights that the short-term solvency
position of these companies has been unsatisfactory over the study periods, suggesting a need
for an increase in current assets. The fluctuating trends observed in the debt-equity ratio and
current assets to shareholders' fund ratio underscore the importance of companies focusing on
enhancing their debt, equity, and shareholders' wealth positions. Recommendations include a
concentrated effort on cost of production, investment in fixed assets, and sales turnover to
improve overall profitability.

10) Mali D. B. (2018) To investigate and compare the financial positions of Cadila Healthcare
Ltd. (CHL) and Torrent Pharmaceuticals Ltd. (TPL) in Gujarat, this study collected data on
Gross Profit Ratio, Net Profit Ratio, Return on Capital Employed Ratio, and Return on Net
Worth Ratio. The study covers a period of five years, from the financial year 2011-12 to 2015-
16. Secondary data from various websites and the annual financial statements of the selected

7
companies were used. The population for the study includes all pharmaceutical companies in
Gujarat listed on NSE/BSE. The findings show an improvement in the financial positions of
both companies, and there is no significant difference in their profitability performance, as the
null hypotheses are accepted.

11) A. Mehta & Bhavani (2018) study Conducted to understand why Tesla Inc. faces annual
losses despite having a potential market and new orders, this study focuses on financial
statements from the last three years (2015-2017). Using a descriptive research method and
secondary data from Tesla Inc.'s official website, the study analyzes Comparative and
Commonsize statements along with 17 financial ratios. The findings indicate that while the
Gross Profit in absolute figures has been increasing, the percentage of Gross Profit compared
to sales has decreased from 23% in 2015 and 2016 to 19% in 2017. Additionally, higher costs
related to Maintenance, Research and Development, and Selling, General, and Administrative
expenses have contributed to the company incurring a Net Loss.

12) Srinivasan (2018) “A study on financial ratio analysis of Vellore cooperative sugar mills
ltd" as entitled. To evaluate and analyze the sugar industry of its financial performance and its
position by using ratio analysis. The company's financial performance has been thoroughly
examined during the years from 2013- 2017. And the data was collected from the secondary
sources. The research includes analyzing the balance sheet and profit & loss account for the
period of five years. It shows the company's financial position over the year which is useful for
decision making. It helps to alter the company in profit direction. This paper gives the guiding
principle about the Activity Ratios, Liquidity Ratios, Solvency Ratios and Profitability Ratios
analysis of Vellore cooperative sugar mills Ltd, Vellore district.

13) Saranya & Sridevi, (2019) Financial performance of IT sector company's are often
considered as one of the indicator of a country's economic growth and development. The main
aim of the study is to assess the liquidity position and analyze financial performance of IT
sector companies in India. The study is based on Secondary data; Secondary data are collected
from record, annual report of the company, journals, trade magazines, websites etc.. The
collected data has been analysed using ratio analysis and correlation. The period of study IT
sector companies from 2014 to 2018 period. The study concluded IT Companies has sound and
effective management of fund, which helps them to control cost and increase the profit in
future.

14) Ramachandran (2019) The aim of the study was to analyse the financial performance of
telecom companies in Oman. Annual reports of two telecom companies were collected for
seven years (2010- 2016) and the financial statement data was analysed using Z score model.
The results of the analysis shows that the performance of Omantel was better than Ooredoo.

8
The present study is a fundamental analysis of telecom companies in Sultanate of Oman. The
study can provide an idea for the investors in which company they can make investments to
earn more returns. The parameters selected for analysis proves to be useful to an investor for
his basic analysis of selecting portfolio of investment.

15) Rajender P (2020) To study and understand how well paint companies in India are doing
financially, we focus on profit maximization, which is a fundamental goal for any business. In
today's competitive world, a company can't survive without making a profit, which is the
income exceeding expenses. To evaluate the financial performance of these companies over
five years (2014-15 to 2018-19) use techniques like Ratio analysis and Statistical methods to
interpret the data. The conclusion drawn from the study indicates that the profitability position
of the selected paint companies appears to be good and satisfactory.

16) Goel, H (2021) Examining Eicher Motors' financial health involves looking at various
ratios to understand its performance over the past decade. The study covers 11 years, from 2008
to 2018, using data from the company's annual reports. Ratios such as Return on Capital
Employed, Net Worth, Debt to Equity, Gross Profit Margin, Asset Turnover, Interest Coverage
Ratio, Earnings Per Share, and EBIDTA/Turnover were calculated. The findings suggest that
Eicher Motors has generally performed well. Notably, the company achieved high returns in
2016, with a Return on Capital Employed reaching 78.64%, a significant increase from 15.9%
in 2008. The increasing Earnings Per Share indicates substantial profits, benefiting equity
shareholders. Moreover, the declining Debt to Equity ratio is positive, signaling that the
company is using less debt to meet financial obligations and is well-positioned to pay off debts
in the future

17) Rapheal Nisha (2021) The aim of the study is to examine the financial position of Total
Energies SE, a French oil company, based on its 4-year financial records. The analysis focuses
on four key financial ratios: profitability, liquidity, leverage, and cash flow. The findings
indicate a decrease in revenues and profits, mainly due to the impact of the COVID-19
pandemic. Liquidity ratios suggest the company can cover its current debts without selling
fixed assets. However, leverage ratios reveal that a significant portion of the company's fixed
assets is funded by debts, posing a financial risk. Despite this, the study suggests that Total
Energies SE is still considered a stable investment option based on the analyzed ratios.

18) Mehta J & Sharma S. (2021) To investigate the financial performance of selected Indian
IT companies over the past 13 years (2007- 08 to 2020-21), this paper uses financial analysis
methods. It aims to establish a connection between liquidity, leverage, efficiency, and
profitability by employing accounting ratios and statistical tools like Anova & CAGR. The
analysis highlights differences in profitability among these IT companies. The findings reveal

9
that Infosys and Wipro performed satisfactorily during the period. Infosys stands out as the top
performer in Gross profit, Net profit, and Current ratio, while Wipro excels in Return on
invested capital, Return on equity, and financial leverage ratio. HCL and TCS secure the third
and fourth positions in terms of performance, with HCL ranking second in return on invested
capital and current ratio. TCS takes the second position in return on equity and Gross profit

19) Kaur Kuldip (2021) To investigate the financial performance of the hotel industry in
Indonesia from 2015 to 2018, this study analyzed a sample of 12 companies out of the 35 hotel
industries listed on the Indonesian Stock Exchange during that period. The primary focus was
on employing various financial ratios as analytical tools, including liquidity, profitability,
activity, leverage, and operational ratios. The objective of this research was to gain insights
into the financial health of these companies during the specified timeframe. However, the study
identified areas of concern within the activity ratio, specifically total asset turnover, and the
leverage ratio, encompassing equity multiplier, debt to asset ratio, and debt to equity ratio.
Operational ratios, including average room rate and food and beverage cost, were also
scrutinized, revealing suboptimal performance.

20) Nurwita N & Rodhiah R. A (2022) This study examines the financial performance of PT
Ulta Jaya Milk Industry & Trading Company from 2011 to 2020 using financial ratios. The
research method is descriptive and quantitative, focusing on data collection related to the
company's financial health. The analysis includes liquidity and profitability ratios. The liquidity
ratios indicate that the company maintains a healthy current balance, exceeding the industry
standard by 3.33% on average. The Quick Ratio is also favorable, surpassing the industry
standard by 2.37%. However, the profitability ratios reveal challenges, with the Net Profit
Margin falling 13% below the industry standard of 20%, and the Return on Assets lagging
behind by 13% compared to the industry standard of 30%. In summary, PT Ulta Jaya has strong
liquidity but faces profitability concerns, highlighting areas for potential improvement in its
financial strategy.

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REFERENCES

1. Pavithra (2013) FINANCIAL PERFORMANCE OF TATA STEEL LIMITED. PARIPEX

INDIAN JOURNAL OF RESEARCH. https://doi.org/10.36106/paripex/6504440

2. Ghimire, R. (2013). Financial Efficiency of Non Life Insurance Industries in Nepal. The
Lumbini Journal of Business and Economics, 2

3. Dr. Meenakshi Anand. (2014). A Study of Financial Analysis in Textile Sector. Journal of
Business Management & Social Sciences Research, 3(6).

4. Ramanan, R. (2015). A Study on Financial Performance of Reliance Industries Limited.

International Journal of Engineering and Management Research Page Number, 5.

5. ATTAH KUMAH, E. (2015). Analysis of Financial Performance of Chennai Petroleum

Corporation Limited, Chennai, India. All Nations University Journal of Applied Thought.
https://doi.org/10.47987/iggm1417

6. Mathur, S., Agarwal, K., & Shivam Mathur, C. (2016). Financial analysis of automobile
industries (A comparative study of Tata Motors and Maruti Suzuki). International Journal of
Applied Research, 2(9).

7. Jan, S. (2016). Financial Statements Analysis of Idea Cellular & Reliance

Telecommunications: A Comparative Study. Imperial Journal of Interdisciplinary Research
(IJIR, 2(7).

8. Vijayalakshmi, S., Sowndarya K, & Sowndharya K. (2017). A Study on Financial

Performance Analysis of Bharti Airtel Limited. In www.ijbmm.com International Journal of
Business Marketing and Management (Vol. 2)

9. Jegadeeshwaran, M., & Basuvaraj, M. (2018). Financial Performance of Indian Automobile

Companies. World Wide Journal of Multidisciplinary Research and Development,
4(1)(January 2018).

10. Mali, D. B. (2018). a Comparative Study on Financial Performance of Cadila Healthcare

Limited and Torrent Pharmaceuticals Limited in Gujarat. Research Guru, 12(1).

11. Mehta, A., & Bhavani, G. (2018). Financial statements analysis on Tesla. Academy of
Accounting and Financial Studies Journal, 22(6).

12. Srinivasan, P. (2018). A Study on Financial Ratio Analysis of Vellore Cooperative Sugar
Mills at Ammundi, Vellore. International Journal of Scientific Research in Multidisciplinary
Studies, 3(2).

11
13. Saranya, & Sridevi (2019). Financial Performance of It Sector Companies in India. The
International Journal of Analytical and Experimental Modal Analysis, XI(861).

14. Ramachandran (2019). Financial Performance of Telecom Industry in Sultanate of Oman.

International Journal of Accounting Research, 4(2). https://doi.org/10.12816/005527

15. Rajender, P. (2020). Performance evaluation of select paint companies in India.

International Journal of Management, 11(1). https://doi.org/10.34218/IJM.11.1.2020.006

16. Goel, H., & Kaur, J. (2021). Ratio Analysis: A Study on Financial Performance of Eicher
Motors. Lloyd Business Review, 3(5)

17. Rapheal Nisha (2021) Financial Statement Analysis of Total Energies SE. Researchgate

18. Mehta, J., Raj, R., & Sharma, S. (2021). FINANCIAL PERFORMANCE ANALYSIS OF
SELECTED INDIAN I.T COMPANIES: A COMPARATIVE STUDY. In Peer Reviewed and
Refereed Journal (Issue 10).

19. Kaur Kuldip (2021). Financial Ratio Analysis to Assess Financial Performance of the Hotel
Industry. International Journal of Social Science and Business, 5(3).
https://doi.org/10.23887/ijssb.v5i3.37003

20. Nurwita, N., & Rodhiah, R. A. (2022). Liquidity Ratio and Profitability Analysis To
Measure Financial Performance in Pt. Ultrajaya Milk Industry & Trading Company Tbk.
International Journal of Economy, Education and Entrepreneurship, 2(1).

12
INTRODUCTION TO TATA CONSULTENCY SERVICES (TCS)

Tata Consultancy Services (TCS) is a global Indian information technology (IT) services and
consulting firm. It have its corporate headquarters in Mumbai, Maharashtra. It operates in 150
locations throughout 46 countries as a part of the Tata Group. TCS is one of the most valuable
IT service brands in the world and the second-largest Indian corporation in terms of market
value.TCS, one of the top-ranked Indian corporations and an IT services provider, was ranked
64th overall in the Forbes list of the "World's Most Innovative Companies" in 2015. It was
listed as number 11 on the Fortune India 500 list as of 2018. TCS was the first Indian IT tech
company to record a market capitalization of $200 billion in September 2021. The market
capitalization of TCS was around Rs. 11,71,482 crores in December 2022. TCS generally have
recorded highest net profit in Indian IT industry over the years.TCS is one of the largest private
employers among publicly traded Indian firms in terms of employment. An employee of TCS
generally enjoys job stability at TCS. As of July 8, 2022, TCS had over .6 million employees.
For the fiscal year 2012–2013, the company's labor costs came to US$4.4 billion, or around
38% of its entire sales which shows TCS spent a huge amount of money on employee costs.
TCS services include Cloud, Cognitive Business Operations, Consulting, Cyber security. TCS
had a total of 50 subsidiary companies with operations in 46 countries as of March, 2021. TCS
don’t lag behind in innovation. TCS launched its co-innovation network in 2007 which is
network of venture capitalists, start-up alliances etc, in the year 2007. Major acquisitions by
TCS in the past include that of CMC Limited, Phoenix Global Solutions, Pearl Group,
Comicrom, Tata Infotech, TCS Management, Postbank Systems, Alti SA, Citigroup Global
Services Limited, etc

13
FINANCIAL STATEMENT

Financial statements are formal records of the financial activities and position of a business,
organization, or individual. These statements provide a summary of the entity's financial
performance and financial position over a specific period of time, typically consisting of an
income statement, balance sheet, and cash flow statement. The income statement shows
revenue and expenses, indicating the profitability of the entity. The balance sheet provides a
snapshot of assets, liabilities, and equity, revealing the financial position at a specific point in
time. Finally, the cash flow statement outlines how cash is generated and used, offering insights
into the entity's liquidity and operational activities. Financial statements are crucial tools for
assessing the financial health and performance of an entity, aiding investors, creditors, and
stakeholders in making informed decisions.

The Main Financial Statements are:

• Balance Sheet: It is a statement showing all the assets owned by the firms and represents all
the liabilities including the equities of owners and outsiders at a particular time.

• Profit and Loss account: It shows the summary of operations of a firm in a given period
providing details of revenue, cost, and profit.

FINANCIAL ANALYSIS

Financial analysis is the examination of a company's financial information to understand

its economic health and performance. It involves scrutinizing financial statements, including
the income statement, balance sheet, and cash flow statement, to assess revenue, expenses,
assets, and liabilities. Analysts use various ratios and metrics to evaluate aspects like
profitability, liquidity, and solvency. This analysis helps stakeholders, such as investors and
management, make informed decisions about the company's financial stability and future
prospects. It allows for the identification of trends, potential risks, and opportunities, aiding in
strategic planning. Ultimately, financial analysis is a crucial tool for gaining insights into a
company's financial standing and facilitating well-informed decision-making in the business
realm.

14
PURPOSE OF FINANCIAL ANLYSIS

1. To help in economic decision making

2. To assess the financial position and financial performance of the business

3. To determine the solvency and liquidity of the business

4. To determine debt paying capacity of the firm

5. To make interfirm comparison

6. To measure managerial efficiency of the firm

7. To solve the internal problems of the business

8. To ascertain the operating performance of the business

9. To judge the present and future profitability of the firm

TECHNIQUES OF FINANCIAL STATEMENT ANLAYSIS

➢ Comparative Financial Statements: comparative financial statements compare the

financial data for two or more years. This is done to make the financial data more meaningful.
The changes (increase or decrease) in the financial data are presented in the absolute amounts
or in percentages

➢ Common Size Statements: common size statement is another techniques of financial

analysis. Common size financial statements are those statements in which items are converted
into percentages taking some common base

➢ Ratio Analysis: Ratio analysis involves calculating key financial ratios to evaluate various
aspects of a company's performance. Examples include the debt-to-equity ratio, which assesses
a company's leverage, and the return on investment (ROI), which measures profitability. Ratios
provide a quick snapshot of a company's financial health and allow for comparisons with
industry benchmarks or competitors.

➢ Trend Analysis: Trend analysis involves reviewing financial data over multiple reporting
periods to identify patterns and changes. By recognizing consistent upward or downward
trends, analysts gain insights into a company's historical performance. This information is
valuable for predicting future developments and assessing the company's overall financial
health.

15
RATIO ANLYSIS

Ratio analysis is a fundamental technique in financial statement analysis that involves the
calculation and interpretation of various financial ratios to assess a company's performance,
financial health, and efficiency. These ratios are derived from key figures in a company's
financial statements, such as the income statement and balance sheet. Common financial ratios
include liquidity ratios (like the current ratio), which measure a company's ability to meet short-
term obligations, profitability ratios (such as the return on equity), which assess the company's
ability to generate profits, and leverage ratios (like the debt-to-equity ratio), which evaluate the
company's use of debt.

By analyzing these ratios, stakeholders, including investors, analysts, and management, can
gain valuable insights into different aspects of a company's operations. For instance, a high
current ratio may indicate strong short-term liquidity, while a low debt-to-equity ratio suggests
lower financial risk. Ratio analysis also facilitates comparisons between companies within the
same industry or against industry benchmarks, helping stakeholders make informed decisions
about investments, creditworthiness, and overall financial strategy. Overall, ratio analysis
serves as a powerful tool for understanding a company's financial position and performance in
a concise and quantifiable manner.

OBJECTIVES OF RATIO ANALYSIS

• To study the short-term solvency of the firm

• To study the long-term solvency of the firm

• To determine the profitability of a firm

• To measure performance of a firm

• To enable managerial decision making

• To communicate strength and weakness of a firm

LIMITATIONS OF ACCOUNTING RATIOS

• Inherent limitation of accounting

• Non-monetary factors ignored

• Qualitative factors ignored

16
• Not a substitute for judgement

• Need for comparative analysis

• Lack of adequate standards

• Window dressing

CLASSIFICATION OF RATIOS:

The ratios can be classified in to four broad groups

A. LIQUIDITY RATIOS

B. SOLVENCY RATIOS

C. TURNOVER RATIO/ ACTIVITY RATIOS

D. PROFITABILITY RATIONS

E. MARKET TEST RATIOS

A. LIQUIDITY RATIOS

The term liquidity refers to the firm's ability to pay its current liabilities out of its current assets
liquidity ratios are used to measure the liquidity position or short term financial position of a
firm. These ratios are used to assess the short-term debt paying ability of a firm. These ratios
are highly useful to creditors and commercial banks that provide short term credit. Important
liquidity ratios are current ratio, quick ratio, super quick ratio etc.

The following are the liquidity ratios used to financial analysis:

1. Current ratio

2. Liquid ratio / acid test ratio

3. Absolute liquid ratio

1) Current ratio

Current ratio is defined as the ratio of current assets to current liabilities. It shows the
relationship between total current assets and total current liabilities. In short, current ratio is a

17
measure of the ability of a firm to pay its current liabilities out of current assets Current ratio
is also called working capital ratio. It is calculated as follows:

Current ratio = current asset / current liability

Standard Current Ratio: The ideal current ratio of 2:1 is considered satisfactory or ideal.

Significance of Current Ratio: The current ratio indicates the firm's capacity to pay its current
liabilities in time. It is an index of the strength of working capital. It represents the margin of
Safety or cushion available to the creditors. In short, current ratio is an important ratio for
analysing the liquidity position or short-term financial position of a firm.

2) Liquid ratio / acid test ratio

The acid test ratio, also known as the quick ratio or Liquid ratio, measures a company's ability
to meet its short-term liabilities with its most liquid assets. It excludes inventory from the
calculation, focusing on cash, marketable securities, and receivables. A higher acid test ratio
indicates a better ability to cover immediate financial obligations, providing insight into a
company's liquidity and financial health.It is computed as follows:

Liquid ratio = liquid asset / current liability

Standard liquid ratio: a quick ratio of 1:1 is considered as satisfactory or ideal.

Significance of liquid ratio: The liquid ratio, or quick ratio, is significant as it assesses a
company's ability to meet short-term liabilities using its most liquid assets. A higher ratio
suggests better liquidity and a stronger ability to cover immediate financial obligations. It helps
investors and creditors gauge the company's short-term financial health and its capacity to
handle unexpected expenses

3) Absolute liquid ratio

Absolute liquid ratio, also known as the cash ratio, is a measure of a company's ability to cover
its immediate liabilities using only its most liquid assets, such as cash and cash equivalents. It
provides a conservative view of short-term liquidity, indicating the company's capacity to meet
obligations without relying on less liquid assets. A higher absolute liquid ratio suggests a
stronger ability to settle short-term debts. It is computed as follows.

Absolute liquid ratio = cash + cash equivalents / Current liability.

18
Standard absolute liquid ratio: The standard absolute liquid ratio, or cash ratio, is generally
considered acceptable if it is around 0.5

Significance of absolute liquid ratio: The significance of absolute liquid ratio is that it shows
how quickly a company can pay its short-term debts with its most liquid assets, such as cash,
bank deposits, and marketable securities. It indicates the level of cash availability and liquidity
risk of the company. A higher ratio means that the company has enough cash to meet its current
obligations without relying on other sources of financing. A lower ratio means that the company
may face difficulties in paying its debts and may need to sell its assets or borrow more money

B. SOLVENCY RATIOS

Solvency ratios measure a company's ability to meet its long-term financial obligations and
remain financially stable. These ratios assess the proportion of debt in a company's capital
structure and its capacity to repay long-term debts using its assets. A higher solvency ratio
indicates greater financial strength and a reduced risk of insolvency, providing insights into a
company's long-term sustainability and creditworthiness. Monitoring solvency ratios helps
stakeholders assess a company's ability to honor its long-term commitments.

The following are the solvency ratios used to financial analysis:

1) Debt equity ratio

2) Proprietary ratio

3) Ratio of total asset to total debt (solvency ratio)

4) Ratio of fixed asset to Net worth

1) Debt equity ratio

The debt-to-equity ratio is a financial metric that compares a company's total debt to its
shareholders' equity. It indicates the proportion of financing that comes from debt compared to
equity. A higher debt-to equity ratio suggests higher financial leverage, potentially increasing
financial risk, while a lower ratio implies a more conservative capital structure. It is computed
as follows:

Debt equity ratio = total borrowed fund / owned fund

Standard debt equity ratio: A standard debt-to-equity ratio is generally considered acceptable
if it is around 1:1, indicating that a company's total debt is equal to its shareholders' equity

19
Significance of debt equity ratio: The debt-to-equity ratio is significant as it measures a
company's financial leverage and risk. A lower ratio suggests a conservative capital structure,
indicating less reliance on debt for financing. Conversely, a higher ratio signals increased
financial risk, making it crucial for stakeholders to assess a company's ability to manage and
repay its debt obligations.

2) Proprietary ratio

The proprietary ratio is a measure of how much of a company’s assets are owned by its
shareholders. It shows how much a company relies on equity rather than debt to finance its
operations. A higher ratio means a stronger financial position and less risk. A lower ratio means
a weaker financial position and more risk. The ratio is calculated by dividing shareholders’
equity by total assets.. It is computed as follows:

Proprietary ratio = shareholder’s fund / total asset

Standard proprietary ratio: A standard proprietary ratio is considered favorable when it is

around 0.5 or 50%, indicating that half of a company's total assets are financed by shareholders'
equity, reflecting a balanced and financially stable capital structure

Significance of proprietary ratio: The significance of proprietary ratio is that it shows how
much of a company’s assets are owned by its shareholders. It indicates the financial strength
and stability of a company and the risk involved for creditors. A higher ratio means more equity
and less debt, while a lower ratio means more debt and less equity.

3) Ratio of total asset to total debt (solvency ratio)

A solvency ratio is a measure of how well a company can pay off its total debt with its total
assets. It shows how much a company depends on borrowing money to run its business. A
higher ratio means a more solvent company and a lower risk of default. A lower ratio means a
less solvent company and a higher risk. It is computed as follows:

Solvency ratio = total assets / total debt

Significance of solvency ratio: The significance of standard solvency ratio is that it shows
how well a company can pay off its total debt with its total assets. It indicates the financial
stability and risk level of a company. A higher ratio means a more solvent and less risky
company. A lower ratio means a less solvent and more risky company

20
4) Ratio of fixed asset to net worth

The fixed asset to networth ratio is a measure of how much of a company’s net worth (or
owner’s equity) is invested in fixed assets, such as buildings, machinery, or equipment. Fixed
assets are long-term assets that are not easily converted into cash. A lower ratio means that the
company has more liquid assets, such as cash or inventory, that can be used to pay off its debts
or fund its operations.. It is computed as follows:

Fixed asset to net worth = fixed asset / net worth

Significance of fixed asset to net worth ratio; The significance of fixed asset to net worth
ratio is to measure how much a company relies on its own funds to finance its fixed assets, such
as property, plant and equipment. It also indicates how liquid or illiquid the company’s assets
are, and how well it can pay off its short-term debts. A lower ratio is generally preferred, as it
shows that the company has more liquidity and less debt.

B. TURNOVER RATIOS / ACTIVITY RATIOS

Turnover ratios, also known as activity ratios, measure how efficiently a company utilizes its
resources in generating sales or revenue. These ratios provide insights into the effectiveness of
a company's operations. Examples include inventory turnover (how quickly inventory is sold)
and accounts receivable turnover (how efficiently receivables are collected). Higher turnover
ratios generally indicate more efficient use of assets in generating revenue.

The following are the solvency ratios used to financial analysis:

1. Total asset turnover ratio

2. Fixed asset turnover ratio

3. Current asset turnover ratio

4. Working capital turnover ratio

1) Total asset turnover ratio

The total asset turnover ratio measures how efficiently a company utilizes its total assets to
generate revenue. It is calculated by dividing the company's total sales by its total assets. A
higher total asset turnover ratio indicates more effective use of assets in generating sales,
reflecting operational efficiency. This ratio helps assess the company's ability to generate
revenue from its asset base. It is computed as follows:

21
Total asset turnover ratio= net sales / Total asset

Significance of total asset turnover ratio : The total asset turnover ratio is significant as it
measures how effectively a company converts its assets into revenue. A higher ratio suggests
efficient asset utilization, indicating effective business operations. Monitoring changes in this
ratio helps assess the company's operational efficiency and overall effectiveness in generating
revenue from its asset base.

2) Fixed asset turnover ratio

The fixed asset turnover ratio assesses how efficiently a company utilizes its fixed assets to
generate revenue. It is calculated by dividing the company's sales by its net fixed assets. A
higher fixed asset turnover ratio indicates more effective utilization of fixed assets in generating
sales, reflecting operational efficiency. This ratio helps evaluate the company's ability to
generate revenue from its investment in fixed assets.it is computed as follows

Fixed asset turnover ratio = net sales / net fixed asset

Significance of Fixed asset turnover ratio: The fixed asset turnover ratio is significant as it
measures how well a company is utilizing its fixed assets to generate sales, indicating
operational efficiency. A higher ratio suggests effective management of fixed assets in revenue
generation. Monitoring changes in this ratio helps assess the company's ability to optimize its
investments in fixed assets for increased profitability.

3) Current asset turnover ratio:The current asset turnover ratio measures how efficiently a
company utilizes its current assets to generate sales. Calculated by dividing total sales by the
current assets, a higher ratio suggests effective management of short-term assets in generating
revenue. This ratio provides insights into the company's operational efficiency and liquidity. It
is computed as follows

Current asset turnover ratio = net sales / net current asset

Significance of Current asset turnover ratio: The current asset turnover ratio is significant
as it gauges how well a company converts its current assets into sales, indicating operational
efficiency. A higher ratio suggests effective management of short-term assets to generate
revenue. Monitoring this ratio helps assess the company's ability to efficiently utilize its current
assets for sales generation.

4) Working capital turnover ratio

The working capital turnover ratio measures how efficiently a company utilizes its working
capital to generate sales. Calculated by dividing total sales by the average working capital, a

22
higher ratio suggests effective utilization of short-term assets and liabilities in generating
revenue. This ratio provides insights into the company's efficiency in managing its working
capital for business operations.it is computed as follows

Working capital turnover ratio = net sales / working capital

Standard: the standard or ideal working capital turnover ratio is 7 or 8 times

Significance of Working capital turnover ratio: The working capital turnover ratio is
significant as it measures how efficiently a company transforms its working capital into sales,
reflecting operational efficiency. A higher ratio suggests effective management of short-term
assets and liabilities to generate revenue. Monitoring this ratio helps assess the company's
ability to utilize its working capital optimally for business operations.

D) PROFITABILITY RATIOS

Profitability ratios are a group of financial measures that show how well a company can make
profit from its activities. They help to evaluate a company’s performance, efficiency, and risk.
Profitability ratios can be based on different factors, such as revenue, assets, or equity. Some
common profitability ratios are net profit ratio, operating margin, and return on equity.

The following are the solvency ratios used to financial analysis:

1) Net profit ratio or net margin

2) Operating profit ratio or operating margin

3) Operating ratio

4) Return on shareholder’s equity

1) Net profit ratio or net margin

The net profit ratio is a profitability metric that assesses the percentage of net profit in relation
to a company's total revenue. Calculated by dividing net profit by total sales and multiplying
by 100, this ratio provides insights into a company's efficiency in converting sales into profits.
A higher net profit ratio indicates effective cost management and revenue generation, reflecting
strong profitability. Investors and analysts use this ratio to evaluate a company's financial health
and performance, making it a crucial tool for decision-making. it is computed as follows

Net profit ratio = Net profit after tax / Net sales * 100

Standard net profit ratio: the ideal net profit ratio is 5% to 10%

23
Significance of net profit ratio: The net profit ratio is significant as it measures the efficiency
of converting sales into profit, offering insights into a company's profitability. A higher ratio
indicates effective cost control and strong revenue generation. Investors use this ratio to assess
the company's financial health, profitability trends, and overall performance, aiding in decision-
making. Monitoring changes in the net profit ratio helps identify potential areas for
improvement or financial challenges.

2) Operating profit ratio or operating margin

The operating profit ratio, also known as operating margin, measures the efficiency of a
company's operations in generating profit before interest and taxes. Calculated by dividing
operating profit by total revenue and multiplying by 100, this ratio reflects the percentage of
sales retained as operating profit. A higher operating profit ratio indicates better operational
efficiency and effective cost management. it is computed as follows

Operating profit ratio = operating profit or EBIT / Net sales * 100

Significance of operating profit ratio: The operating profit ratio is significant as it assesses a
company's operational efficiency and cost management in generating profit from sales. A
higher ratio indicates better profitability before interest and taxes. Investors use this ratio to
evaluate a company's core business performance and its ability to sustain profitability from
day-to-day operations

3) Operating ratio

The operating ratio is a financial metric that evaluates a company's operational efficiency by
comparing its operating expenses to its net sales. It is calculated by dividing operating expenses
by net sales and multiplying by 100. A lower operating ratio indicates more efficient cost
management, while a higher ratio suggests higher operating costs relative to sales. Monitoring
changes in the operating ratio helps assess a company's operational performance over time. it
is computed as follows

opreating ratio = operating cost / net sales * 100

Significance of operating ratio: The operating ratio is significant as it gauges a company's

operational efficiency by measuring the proportion of operating expenses to net sales. A lower
operating ratio indicates effective cost management and higher profitability. Investors and
analysts use this ratio to assess how well a company controls its operational costs, providing
insights into its overall financial health and efficiency. Monitoring changes in the operating
ratio helps identify trends and potential areas for improvement in cost-effectiveness.

24
4) Return on shareholder’s equity

The return on shareholders' equity (ROE) ratio assesses the profitability of a company's equity
investment for shareholders. Calculated by dividing net income by shareholders' equity and
multiplying by 100, it indicates the percentage return on each dollar of equity. A higher ROE
suggests effective use of shareholder funds, reflecting strong financial performance and
management efficiency. Investors use this ratio to evaluate a company's ability to generate
returns on their investment. it is computed as follows

Return on shareholder’s equity = net profit after tax / shareholders fund * 100

Significance of Return on shareholder’s equity: The return on shareholders' equity (ROE) is

significant as it measures how efficiently a company generates profits from shareholder
investments. A higher ROE indicates effective use of equity capital and strong financial
performance. Investors use this ratio to evaluate a company's profitability and its ability to
provide returns to shareholders, aiding in investment decision-making.

E) MARKET TEST RATIOS

Market test ratios are a type of financial ratio that compare a company’s share price to its
earnings, dividends, or book value. They show how the market values the company and its
performance.

The following are the market test ratios used to financial analysis:

1) Earning per share (EPS)

2) Price Earning ratio

3) Dividend payout ratio

1) Earning per share

The ratio indicate the profit available to equity share. it is calculated by dividing the
earnings(profit) available to equity shareholders by the number of equity shares issued. It may
be expressed as follows:

Eps = net profit available to equity shareholders / number of equity shares

Significance of earning per share : Earnings per share (EPS) it help determine the market
price of equity shares. If eps is higher market value of equity share will be higher in the stock
exchange. Thus, it is good measure of profitability this ratio helps the investors to take decision
on investment

25
2) Price Earning ratio

The price-earnings ratio (P/E ratio) is a financial metric that evaluates a company's stock
valuation by comparing its market price per share to its earnings per share (EPS). Calculated
by dividing the market price by EPS, the P/E ratio helps investors assess the market's
expectations for a company's future earnings and growth potential. A higher P/E ratio may
suggest a higher level of investor optimism about the company's future prospects. it is
computed as follows

Price Earing ratio = market price per share / earning per share

Significance of Price Earing ratio: A high price earning ratio may indicate that investors
expect high dividend growth and are ready to pay a higher price for the shares.

3) Dividend payout ratio

The dividend payout ratio is a financial metric that measures the proportion of a company's
earnings paid out as dividends to shareholders. Calculated by dividing the total dividends by
net income and multiplying by 100, this ratio indicates the percentage of profits distributed to
investors. A higher dividend payout ratio suggests a larger portion of earnings returned to
shareholders, while a lower ratio indicates more retained earnings for potential company
growth or debt reduction. it is computed as follows

Dividend payout ratio = total equity dividend / profit available equity shareholders * 100

Significance of dividend payout ratio: The dividend payout ratio is significant as it indicates
the portion of profits distributed to shareholders as dividends, providing insights into a
company's dividend policy. A higher ratio may attract income-focused investors seeking
consistent returns, while a lower ratio suggests retained earnings for potential growth.
Monitoring changes in the dividend payout ratio helps assess a company's commitment to
returning profits to shareholders and its financial strategy.

26
 TABLE 4.1

CURRENT RATIO

YEAR CURRENT ASSET CURRENT RATIO

(Cr.) LIABILITY
(Cr.)
2019 92131 22084 4.17
2020 90237 27060 3.33
2021 99280 34155 2.90
2022 108310 42351 2.55
2023 110270 43558 2.53
AVERAGE 3.10
Source: secondary

CHART 4.1

CURRENT RATIO

4.5

3.5

2.5

1.5

0.5

0
2019 2020 2021 2022 2023

current ratio

INTERPRETATION

From the above chart 4.1shows that The highest current ratio was in 2019, when it
was 4.17.The lowest current ratio was in 2023, when it was 2.53. the average current ratio for
the five-year period(2019-2023) was 3.10. The general trend in the current ratio of TCS Ltd
is downward.

27
 TABLE 4.2

LIQUID RATIO

YEAR LIQUID ASSET CURRENT RATIO

(Cr.) LIABILITY
(Cr.)
2019 92103 22084 4.17
2020 90217 27060 3.33
2021 99272 34155 2.90
2022 108305 42351 2.55
2023 110260 43558 2.53
AVERAGE 3.10
Source: secondary

CHART 4.2

LIQUID RATIO

2023

2022

2021

2020

2019

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5

liquid ratio

INTERPRETATION

From the above chart 4.2shows that, The liquid ratio of TCS Ltd was highest in 2019, at 4.17.
The liquid ratio of TCS Ltd was lowest in 2023, at 2.53. The liquid ratio of TCS Ltd decreased
from 2019 to 2023, with a slight increase in 2021. The average liquid ratio of TCS Ltd was
3.10 for the five years (2019-2023).

28
 TABLE 4.3

ABSOLUTE LIQUID RATIO

YEAR CASH AND CASH CURRENT RATIO

EQUIVELNS LIABILITY
(Cr.) (Cr.)
2019 12848 22084 0.58
2020 9666 27060 0.35
2021 9329 34155 0.27
2022 18221 42351 0.43
2023 11032 43558 0.25
AVERAGE 0.38
Source: secondary

CHART 4.3

ABSOLUTE LIQUID RATIO

0.6

0.5

0.4

0.3

0.2

0.1

0
2019 2020 2021 2022 2023

absolute liquid ratio

INTERPRETATION

From the above chart 4.3shows that The absolute liquid ratio of TCS Ltd was highest in 2019,
at 0.58. The absolute liquid ratio of TCS Ltd was lowest in 2023, at 0.25. The average absolute
liquid ratio of TCS Ltd was 0.38 for the five years. The absolute liquid ratio of TCS Ltd
decreased from 2019 to 2023, with a slight increase in 2022.

29
 TABLE 4.4

DEBT EQUITY RATIO

YEAR TOTAL OWNED RATIO

BORROWED FUND
FUND (Cr.)
(Cr.)
2019 25044 89899 0.27
2020 36150 84749 0.42
2021 43651 87108 0.50
2022 51668 89846 0.57
2023 52445 91206 0.56
AVERAGE 0.46
Source: secondary

CHART 4.4

DEBT EQUITY RATIO

0.6

0.5

0.4

0.3

0.2

0.1

0
2019 2020 2021 2022 2023

debt equity ratio

INTERPRETATION

From the above chart 4.4shows that,The debt equity ratio of TCS Ltd was lowest in 2019, at
0.27. The debt equity ratio of TCS Ltd was highest in 2022, at 0.57. The debt equity ratio of
TCS Ltd increased from 2019 to 2022, with a slight decrease in 2023.The average debt equity
ratio of TCS Ltd was 0.46 for the five years.

30
 TABLE 4.5

PROPRIETARY RATIO

YEAR SHAREHOLDER’S TOTAL RATIO

FUND ASSET
(Cr.) (Cr.)
2019 89899 114943 0.78
2020 84749 120899 0.70
2021 87108 130759 0.66
2022 89846 141514 0.63
2023 91206 143651 0.64
AVERAGE 0.68
Source: secondary

CHART 4.5

PROPRIETARY RATIO

2023

2022

2021

2020

2019

0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8

proprietary ratio

INTERPRETATION

From the above chart 4.5shows that, The proprietary ratio of TCS Ltd was highest in 2019, at

0.78. The proprietary ratio of TCS Ltd was lowest in 2022, at 0.63 .The proprietary ratio of
TCS Ltd decreased from 2019 to 2022, with a slight increase in 2023. The average proprietary
ratio of TCS Ltd was 0.68 for the five years.

31
 TABLE 4.6

SOLVENCY RATIO

YEAR TOTAL TOTAL ASSET RATIO

BORROWED FUND (Cr.)
(Cr.)
2019 25044 114923 0.21
2020 36150 120899 0.29
2021 43651 130759 0.33
2022 51668 141514 0.36
2023 52445 143651 0.39
AVERAGE 0.31
Source: secondary

CHART 4.6

SOLVENCY RATIO

0.4

0.35

0.3

0.25

0.2

0.15

0.1

0.05

0
2019 2020 2021 2022 2023

solvency ratio

INTERPRETATION

From the above chart 4.6shows that, The solvency ratio of TCS Ltd was lowest in 2019, at
0.21. The solvency ratio of TCS Ltd was highest in 2023, at 0.39. The solvency ratio of TCS
Ltd increased from 2019 to 2023. The average solvency ratio of TCS Ltd was 0.31 for the five
years(2019-2023).

32
 TABLE 4.7

FIXED ASSET TO NETWORTH

YEAR FIXED ASSET NETWORTH RATIO

(Cr.) (Cr.)
2019 22812 89899 0.25
2020 30662 84749 0.36
2021 31479 87108 0.36
2022 33204 89846 0.37
2023 33381 91206 0.36
AVERAGE 0.34
Source: secondary

CHART 4.7

FIXED ASSET TO NETWORTH

0.4

0.35

0.3

0.25

0.2

0.15

0.1

0.05

0
2019 2020 2021 2022 2023

fixed asset to networth

INTERPRETATION

From the above chart 4.7shows that, The fixed asset to net worth ratio of TCS Ltd was lowest
in 2019, at 0.25. The fixed asset to net worth ratio of TCS Ltd was highest in 2022, at 0.37. The
fixed asset to net worth ratio of TCS Ltd increased from 2019 to 2022, with a slight decrease
in 2023. he average fixed asset to net worth ratio of TCS Ltd was 0.34 for the five years(2019-
2023).

33
 TABLE 4.8

TOTAL ASSET TURNOVER RATIO

YEAR NET SALES TOTAL ASSET RATIO

(Cr.) (Cr.)
2019 146463 114943 1.27
2020 156949 120899 1.29
2021 164177 130759 1.25
2022 191754 141514 1.35
2023 225458 143653 1.56
AVERAGE 1.34
Source: secondary

CHART 4.8

TOTAL ASSET TURNOVER RATIO

1.6

1.4

1.2

0.8

0.6

0.4

0.2

0
2019 2020 2021 2022 2023

total asset turnover ratio

INTERPRETATION

From the above chart 4.8shows that, The total asset turnover ratio of TCS Ltd was highest in
2023, at 1.56 The total asset turnover ratio of TCS Ltd increased from 2019 to 2023, with a
slight decrease in 2021.The total asset turnover ratio of TCS Ltd was lowest in 2021, at 1.25.
The average total asset turnover ratio of TCS Ltd was 1.34 for the five years(2019-2023).

34
 TABLE 4.9

FIXED ASSET TURNOVER RATIO

YEAR NET SALES TOTAL FIXED RATIO

(Cr.) ASSET
(Cr.)
2019 146463 22812 6.42
2020 156949 30662 5.11
2021 164177 31479 5.21
2022 191754 33204 5.77
2023 225458 33381 6.75
AVERAGE 5.85
Source: secondary

CHART 4.9

FIXED ASSET TURNOVER RATIO

0
2019 2020 2021 2022 2023

fixed asset turnover ratio

INTERPRETATION

From the above chart 4.9shows that, The fixed asset turnover ratio of TCS Ltd was lowest in
2020, at 5.11.The fixed asset turnover ratio of TCS Ltd was highest in 2023, at 6.75. The fixed
asset turnover ratio of TCS Ltd increased from 2019 to 2023, with a slight decrease in 2021.
The average fixed asset turnover ratio of TCS Ltd was 5.85 for the five years(2019-2023).

35
 TABLE 4.10

CURRENT ASSET TURNOVER RATIO

YEAR NET SALES TOTAL CURRENT RATIO

(Cr.) ASSET
(Cr.)
2019 146463 92131 1.58
2020 156949 90237 1.73
2021 164177 99280 1.65
2022 191754 108310 1.77
2023 225458 110270 2.04
AVERAGE 1.75
Source: secondary

CHART 4.10

CURRENT ASSET TURNOVER RATIO

2.5

1.5

0.5

0
2019 2020 2021 2022 2023

current asset turnover ratio

INTERPRETATION

From the above chart 4.10 shows that, The current asset turnover ratio of TCS Ltd increased
from 2019 to 2023.The current asset turnover ratio of TCS Ltd was lowest in 2019, at 1.58. The
current asset turnover ratio of TCS Ltd was highest in 2023, at 2.04. The average current asset
turnover ratio of TCS Ltd was 1.75 for the five years(2019-2023).

36
 TABLE 4.11

WORKING CAPITAL TURNOVER RATIO

YEAR NET SALES WORKING RATIO

(Cr.) CAPITAL
(Cr.)
2019 146463 70047 2.09
2020 156949 63177 2.48
2021 164177 65125 2.52
2022 191754 65939 2.90
2023 225458 66712 3.37
AVERAGE 2.68
Source: secondary

CHART 4.11

WORKING CAPITAL TURNOVER RATIO

2023

2022

2021

2020

2019

0 0.5 1 1.5 2 2.5 3 3.5

working capital turnover ratio

INTERPRETATION

From the above chart 4.11shows that, The working capital turnover ratio of TCS Ltd increased
from 2019 to 2023. The working capital turnover ratio of TCS Ltd was lowest in 2019, at 2.09.
The working capital turnover ratio of TCS Ltd was highest in 2023, at 3.37. The average
working capital turnover ratio of TCS Ltd was 2.68 for the five years(2019-2023).

37
 TABLE 4.12

NET PROFIT RATIO

YEAR NET PROFIT NET RATIO

(Cr.) SALES
(Cr.)
2019 31562 146463 21.54%
2020 32447 156949 20.67%
2021 33780 164177 20.57%
2022 38449 191754 20.05%
2023 42303 225458 18.76%
AVERAGE 20.32%
Source: secondary

CHART 4.12

NET PROFIT RATIO

22.00%

21.50%

21.00%

20.50%

20.00%

19.50%

19.00%

18.50%

18.00%

17.50%

17.00%
2019 2020 2021 2022 2023

netprofit ratio

INTERPRETATION

From the above chart 4.12shows that, The Net profit ratio of TCS Ltd decreased from 2019 to
2023 The Net profit ratio of TCS Ltd was highest in 2019, at 21.54%. The Net profit ratio of
TCS Ltd was lowest in 2023, at 18.76%. The average Net profit ratio of TCS Ltd was 20.32%
for the five years(2019-2023).

38
 TABLE 4.13

OPERATING RATIO

YEAR OPERATING NET SALES RATIO

COST (Cr.)
(Cr.)
2019 109013 146463 74.45%
2020 118369 156949 75.41%
2021 121696 164177 74.12%
2022 143301 191754 74.73%
2023 171221 225458 75.94%
AVERAGE 74.93
Source: secondary

CHART 4.13

OPERATING RATIO

76.00%

75.50%

75.00%

74.50%

74.00%

73.50%

73.00%
2019 2020 2021 2022 2023

operating ratio

INTERPRETATION

From the above chart 4.13shows that, The operating ratio of TCS Ltd was lowest in 2021, at
74.12%The operating ratio of TCS Ltd was highest in 2023, at 75.94%.The operating ratio of
TCS Ltd increased from 2019 to 2023, with a slight decrease in 2021. The average operating
ratio of TCS Ltd was 74.93% for the five years(2019-2023).

39
 TABLE 4.14

OPERATING PROFIT RATIO

YEAR OPERATING NET SALES RATIO

PROFIT (Cr.)
(Cr.)
2019 31760 146463 21.68%
2020 33371 156949 21.26%
2021 34417 164177 20.96%
2022 39223 191754 20.46%
2023 43082 225458 19.10%
AVERAGE 20.69%
Source: secondary

CHART 4.14

OPERATING PROFIT RATIO

22.00%

21.50%

21.00%

20.50%

20.00%

19.50%

19.00%

18.50%

18.00%

17.50%
2019 2020 2021 2022 2023

operating profit ratio

INTERPRETATION

From the above chart 4.14shows that, The operating profit ratio of TCS Ltd was highest in
2019, at 21.68%.The operating profit ratio of TCS Ltd was lowest in 2023, at 19.10%. The
operating profit ratio of TCS Ltd decreased from 2019 to 2023. The average operating profit
ratio of TCS Ltd was 20.69% for the five years(2019-2023).

40
 TABLE 4.15

RETURN ON SHARE HOLDERS FUND

YEAR NET PROFIT SHAREHOLDERS RATIO

(Cr.) FUND
(Cr.)
2019 31562 89899 35.10%
2020 32447 84749 38.28%
2021 33780 87108 38.77%
2022 38449 89846 42.79%
2023 42303 91206 46.38%
AVERAGE 40.26%
Source: secondary

CHART 4.15

RETURN ON SHARE HOLDERS FUND

50.00%
45.00%
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
2019 2020 2021 2022 2023

return on share holders fund

INTERPRETATION

From the above chart 4.15shows that, the return on shareholders fund was highest in 2023 at
46.38% .the return on shareholders fund lowest in 2019 at 35.10% .the average return on
shareholders fund is 40.26%. the general trend on return on shareholders fund are increased
from 2019 to 2023

41
 TABLE 4.16

EARNING PER SHARE

YEAR EPS
2019 83.05
2020 86.19
2021 86.71
2022 103.62
2023 115.19
AVERAGE 94.95
Source: secondary

CHART 4.16

EARNING PER SHARE

140

120

100

80

60

40

20

0
2019 2020 2021 2022 2023

earning per share

INTERPRETATION

From the above chart 4.16 shows that, The EPS of TCS Ltd increased from 2019 to 2023. The
EPS of TCS Ltd was highest in 2023, at 115.19. This means that the company achieved its peak
EPS in that year. The average eps of Tcs ltd was Rs 94.95

42
 TABLE 4.17

PRICE-EARNING RATIO

YEAR MARKET EARNING PER RATIO

PRICE SHARE
(Rs.) (Rs.)
2019 2161.30 83.05 26.02
2020 2870.20 86.19 33.30
2021 3736.85 86.71 43.08
2022 3259.25 103.62 31.45
2023 3793.40 115.19 35.93
AVERAGE 33.95
Source: secondary

CHART 4.17

PRICE-EARNING RATIO

45
40

35

30

25

20

15

10

0
2019 2020 2021 2022 2023

price earning ratio

INTERPRETATION

From the above chart 4.17shows that, The P/E ratio of TCS Ltd was lowest in 2019, at
26.02. The P/E ratio of TCS Ltd was highest in 2021, at 43.08. The P/E ratio of TCS Ltd
increased from 2019 to 2021, then decreased in 2022, and increased again in 2023. The average
P/E ratio of TCS Ltd was 33.95 for the five years(2019-2023).

43
 TABLE 4.18

DIVIDEND PAYOUT RATIO

YEAR TOTAL EQUITY PROFIT RATIO

DIVIDEND AVILABLE TO
(Cr.) EQUITY SHARE
HOLDERS
(Cr.)
2019 10085 31565 31.95%
2020 31896 32447 98.30%
2021 10850 33780 32.11%
2022 13317 38449 34.63%
2023 41347 42303 97.74%
AVERAGE 58.95%
Source: secondary

CHART 4.18

DIVIDEND PAYOUT RATIO

100.00%
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
2019 2020 2021 2022 2023

dividend payout ratio

INTERPRETATION

From the above chart 4.18shows that, The dividend payout ratio of TCS Ltd was lowest in
2019, at 31.95%. The dividend payout ratio of TCS Ltd was highest in 2020 and 2023, at
98.30% and 97.74%, respectively. The average dividend payout ratio of TCS Ltd was 58.95%
for the five years. The dividend payout ratio of TCS Ltd fluctuated from 2019 to 2023,

44
 TABLE 4.19

TREND ON NET PROFIT

YEAR NETPROFIT
(Cr.)
2019 31562
2020 32447
2021 33780
2022 38449
2023 42303
Source: secondary

CHART 4.19

TREND ON NET PROFIT

45000

40000

35000

30000

25000

20000

15000

10000

5000

0
2019 2020 2021 2022 2023

net profit

INTERPRETATION

From the above chart 4.19shows that, The net profit of TCS Ltd increased from 2019 to
2023. This indicates a positive trend on net profit and a strong financial performance

45
 TABLE 4.20

TREND ON SALES

YEAR SALES
(Cr.)
2019 146463
2020 159949
2021 164177
2022 191754
2023 225458
Source: secondary

CHART 4.20

TREND ON SALES

250000

200000

150000

100000

50000

0
2019 2020 2021 2022 2023

sales

INTERPRETATION

From the above chart 4.20 shows that, The sales of TCS Ltd increased from 2019 to 2023.This
indicates a positive trend on sales and a strong market position

46
 FINDINGS

➢ The ideal current ratio is 2:1 in this analysis the average current ratio is 3.10 which is
more than the ideal ratio so the current ratio is sufficient.
➢ The ideal liquid ratio is 1:1 in this analysis the average liquid ratio is 3.10 which is more
than the ideal ratio so the liquid ratio is very much satisfactory
➢ The absolute liquid ratio of TCS ltd decreased from 2019 to 2023, with a slight increase
in 2022. This means that the company’s liquidity position and ability to pay off its
current liabilities declined
➢ The debt equity ratio of TCS Ltd increased from 2019 to 2022, with a slight decrease
in 2023. This shows that the company increased its debt financing over the five years,
➢ The proprietary ratio of TCS Ltd decreased from 2019 to 2022, with a slight increase
in 2023. This shows that the company reduced its equity financing and increased its
debt financing over the five years
➢ The solvency ratio of TCS ltd increasing over the years, it show the company was able
to meet long obligations by comparing its total asset with its total debt
➢ The fixed asset to net worth ratio of TCS Ltd increased from 2019 to 2022, with a slight
decrease in 2023. This shows that the company increased its investment in fixed assets
over the five years
➢ The total asset turnover ratio of TCS Ltd increased from 2019 to 2023, with a slight
decrease in 2021. This shows that the company improved its efficiency in using its
assets to generate sales over the five years.
➢ the current asset turnover ratio increased from 2019 to 2023.This show that the
company efficiently using current asset to generate sales
➢ The fixed asset turnover ratio of TCS Ltd increased from 2020 to 2023, with a slight
decrease in 2021. This shows that the company improved its efficiency in using its fixed
assets to generate sales over the years
➢ Working capital turnover ratio show working capital is positive. Working capital
turnover ratio is more in the year 2023 and less in the year 2019
➢ Net profit ratio is decreasing year by year.Net profit ratio more in the year 2019 at
21.54% and less in the year 2023 at 18.76%
➢ The operating ratio of TCS Ltd increased from 2019 to 2023, with a slight decrease in
2021. This shows that the company’s operating costs increased over the five years,
➢ The operating profit ratio of TCS Ltd decreased from 2019 to 2023, with a slight
increase in 2021

47
➢ The Return on shareholders fund of TCS Ltd increased from 2019 to 2023, with a slight
decrease in 2020 TCS Ltd has been consistently improving its efficiency in utilizing
shareholders’ funds to generate profits
➢ The EPS increased from 2019 to 2023, with a slight decrease in 2020. This shows that
the company improved its market performance over the five years.
➢ The price earning ratio increased from 2019 to 2021, with a slight decrease in 2022 and
2023.
➢ The Dividend payout ratio is fluctuated from 2019 to 2023,it show the company using
fund for retained earnings for potential company growth or debt reduction
➢ The movement of sales and net profit has a positive trend over the five years

48
 SUGGESTIONS

➢ The study shows that the Net profit ratio is decreasing year by year which is not
acceptable so necessary steps should be taken to maintain the profit of the firm.
➢ Reduce the operating expenditure by effective use of funds help to increase the
operating income this further help to increase the profit of the firm
➢ The company should maintain the minimum cash and bank balances to meet immediate
expenses
➢ The study show that the debt equity ratio is increasing year by year so necessary steps
should be taken to control debt
➢ The study show that the operating ratio is increasing year by year so the company must
the Implement cost control measures.
➢ The study show that the dividend payout ratio fluctuated during the year the company
could adopt a more stable and sustainable dividend policy.

49
CONCLUSION

This study provides a comprehensive analysis of TCS Ltd.'s financial performance using
various financial ratios and metrics. By examining profitability, liquidity, solvency, efficiency,
turnover, and market test ratios, we gained valuable insights into the company's financial health
and identified key trends.

The results of the study revealed that TCS Ltd had a strong financial position and performance
in the IT industry. The liquidity Position of the company is good.The solvency position of the
company is good. The company also had a high profitability ratio, reflecting its ability to
generate income from its operations. The company showed a positive trend in sales and net
profit. The turnover ratio of the company is highly satisfied and market position of the company
is good. The study came to the conclusion that, the overall financial performance of the
company is good

50
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BOOKS

• Pandey L M (2002) “Financial Management”, sixth edition Vikass Publishing house

Pvt Ltd., New Delhi.
• K.G.C Nair “Management Accounting”,Chandbooks Publications,1st edition,
Trivandrum,2008
• Kothari C R- Research Methodology: Method and Techniques, New age international
publishers, 2nd revised edition, New Delhi,2008
• Khan, M. Y. and Jain, P. K. (2007), Financial Management Text and Problems, 5th
Edition, Tata Mac Grawhill Publishing Ltd., New Delhi.

ANNUALS

• Annual report of TATA CONSULTANCY SERVICES LTD 2019-2023

WEBSITES

• https://www.moneycontrol.com/financials/tcs/ratiosVI/tcs (dated on 14/02/2024)

• https://www.tcs.com/content/dam/tcs/investor-relations/financial-statements/2022-
23/ar/annual-report-2022-2023 (dated on 14/02/2024)
• https://in.investing.com/equities/tata-consultancy-services (dated on 15/02/2024)

52
 BALANCE SHEET (cr.)

PARTICULARS MARCH 31 MARCH MARCH MARCH MARCH

2023 31, 2022 31 2021 31 2020 31 2019
ASSETS
Non-current asset
Property ,plant and 10230 10774 11110 10941 10411
equipment
Capital work in progress 1234 1205 926 906 963
Right off use asset 7560 7636 7633 7994
Goodwill 1858 1787 1798 1710 1700
Other intangible asset 867 1101 480 283 179
Financial asset
Investment 266 223 213 216 239
Trade receivable 149 145 55 74 95
Billed 199 55 273 324 391
Unbilled 173 311 29 29 60
Loans
Other financial asset 2149 2253 1573 1184 738
Income tax asset 2583 1983 1845 2462 4017
Deferred tax asset 3307 3708 3931 2828 2656
Other asset 2806 2023 1613 1711 1363
Total non-current asset 33381 33204 31479 30662 22812
Current asset 28 20 8 5 10
Inventories
Financial asset
Investment 36897 30262 29160 26140 29091
Trade receivable
Billed 41049 34074 30079 30532 27346
Unbilled 8905 7736 6583 5732 5157
Cash and cash equivalents 7123 12488 6858 8646 7224
Other balance with bank 3909 5733 2471 1020 5624
Loans 1325 6445 11472 8475 8029
Other financial assets 1319 1390 1394 1475 1769
Income tax asset 8 11 19 8 1853
Other asset 9707 10151 11236 8206 6028
Total current asset 110270 108310 99280 90237 92131
Total asset 143651 141514 130759 120899 114943
Equity and liabilities
Equity
share capital 366 366 370 375 375
other equity 90058 88773 86063 83751 89071
equity attribute to 90424 89139 86433 84126 89446
shareholders
non-controlling interest 782 707 675 623 453
total equity 91206 89846 87108 84749 89899
liabilities
non-current liabilities
financial liabilities
lease liabilities 6203 6368 6053 6906 -
borrowings - - - - 44
other financial liabilities 353 572 280 291 267
employee benefit obligation 536 677 749 417 330
deferred tax liabilities 792 590 767 779 1042
provisions - - - - -
unearned and deferred 1003 1110 1197 697 844
revenue
other liabilities - - - - 413

Total non-current 8887 9317 9496 9090 2960

liabilities

Current liability
Financial liability
Lease liabilities 1485 1450 1292 1268 -
trade payable 10515 8045 7850 6740 6292
borrowings - - - - -
other financial liabilities 9068 7687 6150 6100 4903
unearned and deferred 3843 3635 3650 2915 2392
revenue 4892
other liabilities 345 8392 4068 3283 3235
provisions 4065 1411 1394 293 239
employee benefit obligation 9345 3810 3498 2749 2356
income tax liabilities 9345 7921 6243 3712 2667

Total current liabilities 43558 42351 34155 27060 22084

Total equity and liabilities 143651 141514 130759 120899 114943

 STATEMENT OF PROFIT AND LOSS

(cr.)

PARTICULARS MARCH MARCH MARCH MARCH 31 MARCH

31 31, 2022 31 2021 2020 31 2019
2023

Revenue from operation 225458 191754 164177 156949 146463

Other income 3449 4018 3134 4592 4311

Total income 228907 195772 167311 161541 150774

Expenses
Employee benefit 127522 107554 91814 85952 78246
expenses
Fee to external consultant - - 13214 12937 -
Cost of equipment 1881 1163 1462 1905 2270
Finance cost 779 784 637 924 198
Depreciation 5022 4604 4065 3529 2056
Other expenses 36796 29980 29980 14046 26441

Total expenses 172000 144085 122333 119293 109211

Profit/loss before tax 56907 51687 44978 42248 41563

Tax expenses
Current tax 14757 13654 11635 10378 9502
Deferred tax (153) (416) (437) (577) 499

Total tax expense 14604 13238 11198 9801 10001

Profit/(loss) for the year 42303 38449 33780 32447 31562