Tata Consultancy Services is an IT services, consulting and business solutions organization that has been partnering with many of the world’s largest businesses in their transformation journeys for the last fifty years. TCS offers a consulting-led, cognitive powered, integrated portfolio of IT, business & technology services, and engineering. This is delivered through its unique location independent agile delivery model, recognized as a benchmark of excellence in software development.
The company has domain expertise in a broad set of industries, comprising Banking, Financial Services and Insurance, Retail and CPG, Communication & Media, Manufacturing, Life Sciences & Healthcare, Energy & Utilities, Travel & Hospitality, Technology & Services and others.
Geographically, TCS operates in all five continents, with North America and Europe constituting the largest markets for our services. We derive over a fifth of our revenues from emerging markets such as India, Asia-Pacific, Latin America and Middle-East & Africa.
TCS was established in 1968 as a division of Tata Sons Limited. TCS was corporatized into a separate company with effect from 1st April 2004. Following a hugely successful IPO in July 2004, it was listed on the NSE and BSE on August 25, 2004.
As of September 30, 2020, TCS employed 453,540 professionals.
TCS is headquartered in Mumbai, India, and has a global presence in 50 countries with 187 Solution centers in 19 countries.
The mailing address of TCS’ registered office is:
9th Floor, Nirmal Building
Nariman Point
Mumbai 400 021
Tel: 91 22 6778 9595
Fax: 91 22 6778 9660
TCS follows a financial year that begins on April 1 and ends on March 31.
| Q2 FY2021 | As per IFRS (INR Mn) | As per IFRS ($ Mn) |
|---|---|---|
| Revenue | 401,530 | $5,059 |
| Net Income | 84,330* | $925 |
* Excludes provision of ₹12,180 million towards legal claim
| FY 2020 | As per IFRS (INR Mn) | As per IFRS ($ Mn) |
|---|---|---|
| Revenue | 1,569,490 | $22,031 |
| Net Income | 323,400 | $4,541 |
Internal Auditors: Ernst and Young
Statutory Auditors: B S R & Co. LLP
TCS' current credit ratings* are as below:
| Credit Rating Agency | Moody's | S&P | ICRA |
|---|---|---|---|
| Long term credit rating | Baa1 | A | AAA |
| Outlook long term credit rating | Negative | Stable | Stable |
* TCS provides the credit ratings for information purposes only. TCS does not endorse the agencies providing the ratings or their views and does not accept any responsibility for their accuracy.
You can find the TCS' Investor Relations Presentation in the "Management Commentary" section of the Investor page on our website. You can also download it by clicking here.
Details of all acquisitions done by TCS in the last 15 years are as below:
Name of acquired company | Based in | Acquisition cost ($ Mn) | Acquisition date | Business of acquired company |
|---|---|---|---|---|
Swedish Indian IT Resources AB (SITAR) | Sweden | $5 | 1-May-05 | IT services |
Tata Infotech Ltd | India | $67 | 14-Jul-05 | IT services |
Pearl group BPO | United Kingdom | $95 | 1-Oct-05 | Life Insurance policy administration |
FNS | Australia | $26 | 20-Oct-05 | Core banking software |
Comicrom S.A., Chile | Chile | $23 | 1-Nov-05 | Payment processing |
TKS-Teknosoft | Switzerland | $81 | 2-Nov-06 | Wholesale banking software |
TCS Management | Australia | $12 | 8-Nov-06 | Consultancy |
Citigroup Global Services Ltd | India | $512 | 8-Oct-08 | Banking back office processing |
SUPERVALU | India | $100 | 16-Oct-10 | IT services captive |
Computational Research Laboratories Ltd | India | $34 | 15-Aug-12 | High performance computing |
Alti SA | France | $98 | 8-Apr-13 | IT services |
IT Frontiers | Japan | N/A | 21-Apr-14 | IT services |
W12 Studios Ltd | United Kingdom | N/A | 1-Nov-18 | Design studio |
BridgePoint Group LLC | United States | N/A | 28-Nov-18 | Consultancy |
TCS made an initial public offer in July 2004 and its shares were listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in India on August 25, 2004. The shares of the Company were issued at a face value of Re 1 per share and a share premium of Rs 849 per share. There has been no follow-on offering from the Company.
TCS’ equity shares are listed in India on the National Stock Exchange (NSE: TCS) and the Bombay Stock Exchange (BSE: 532540).
TCS’ ISIN code is INE467B01029
As of September 30, 2020, TCS had 3,752,384,706 shares outstanding.
The history of bonus issues (stock splits) at TCS is listed below :
| Year | Bonus share issue | Stock split ratio | Effective Date |
|---|---|---|---|
| 2006 | 1:1 | 2 for 1 | August 9, 2006 |
| 2009 | 1:1 | 2 for 1 | June 18, 2009 |
| 2018 | 1:1 | 2 for 1 | June 4, 2018 |
The history of buyback at TCS is listed below :
| Date of announcement of Buyback | Share % of paid-up capital bought back | Share Buyback price | Total Buyback Amount | Date of extinguishment of shares |
|---|---|---|---|---|
| Feb 20, 2017 | 2.85% | ₹ 2,850* | ₹ 16,000 crore | Jun 8, 2017 |
| Jun 15, 2018 | 1.99% | ₹ 2,100 | ₹ 16,000 crore | Sep 26, 2018 |
* Price not adjusted for subsequent bonus issue.
The annual dividend history at TCS, not adjusted for the two stock splits, since listing is given below:
| Year | FY 2005 | FY 2006 | FY 2007 | FY 2008 | FY 2009 | FY 2010 | FY 2011 | FY 2012 | FY 2013 | FY 2014 | FY 2015 | FY 2016 | FY 2017 | FY 2018 | FY 2019 | FY 2020 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend /Share (₹) | 11.50 | 13.50 | 13 | 14 | 14 | 20* | 14 | 25* | 22 | 32 | 79* | 43.50 | 47 | 50 | 30 | 73* |
* Includes Special Dividend of ₹10,₹8, ₹40 and ₹40 for FY2010, FY2012, FY2015 and FY2020 respectively
You can find the record date / payment date for the dividends announced by us in the "Dividend Payment Details" section of the Investor page on our website. These details are also notified to the stock exchanges on the same day of the announcement of the dividend and available on the BSE and NSE websites.
The quiet period at TCS begins ten days before the end of every quarter and lasts until the day of that quarter’s earnings release. During this period, the company’s management refrains from communicating with market participants.
The Annual General Meeting (AGM) is typically held in end-June / early-July. The formal announcement will be published on the Investors page of our website, closer to the event. If you are a shareholder, you will receive a formal notice of the meeting, containing details of the date, time and venue, alongside the Annual Report.
TCS’ shares can be purchased on the open market in India through either a stock broker or any financial institution that provides brokerage services at the BSE or NSE. TCS does not offer a direct stock purchase plan.
No. The Company does not have any such program at present.
No. The Company does not accept fixed deposits.
For physical holdings, please send a letter, duly signed by the first holder, stating the new address and folio numbers of the shares you own to our Share Registrar, M/s TSR Darashaw Consultants Private Limited (mailing address in the Investor Contacts section). A computerized acknowledgement will be sent to your new address confirming the updation of the change in our records.
In the case of dematerialized holdings, please write to your Depository Participant (DP) intimating them of the change and ask for a confirmation that their records reflect the new address.
Please write to our Share Registrar, M/s TSR Darashaw Consultants Private Limited (mailing address in the Investor Contacts section) with details of folio numbers (in the case of physical holdings) or the DP ID and account number in the case of dematerialized holdings. After verification, they will issue a fresh check.
To avoid this problem in the future, you can use the ECS facility in which the dividend amount is automatically credited to the bank account of your choice. To avail of this facility, give your request to M/s TSR Darashaw Consultants Private Limited in writing.
Also, you might consider dematerializing your holdings through a reliable Depository Participant. This would not only eliminate the issues of storage and risk of loss of paper certificates but also ensure automatic crediting of dividends to your bank account. Click on the links to the see the list of Depository Participants empaneled with each of the two depositories in India – NSDL and CDSL.
Statutory information detailed in the Investor Education and Protection Fund (Uploading of information regarding unpaid and unclaimed amounts lying with companies) Rules, 2012, are available here:
- Unclaimed Dividend details as on Jun 28, 2013
- Unclaimed Dividend details as on Jun 27, 2014
- Unclaimed Dividend details as on Jun 30, 2015
- Unclaimed Dividend details as on Jun 17, 2016
- Unclaimed Dividend details as on Jun 16, 2017
- Unclaimed Dividend details as on Jun 15, 2018
Pursuant to the applicable provisions of the Companies Act, 2013, the dividend declared by the Company, which is not claimed by the shareholders within 30 days from the date of the declaration, is required to be transferred to the Unpaid Dividend Account and the details of the shareholders, whose dividend is transferred, is required to be uploaded on the website of the Company. The dividend lying in this Unpaid Dividend Account can be claimed by the shareholders by writing to the Registrar and Transfer Agent - M/s TSR Darashaw Consultants Private Limited (mailing address in the Investor Contacts section) with details of folio number (in case of physical holdings) or the DP ID/Client ID (in case of dematerialized holdings).
The details of the shareholders whose unclaimed dividends were transferred to Unpaid Dividend Account are available here:
Pursuant to the applicable provisions of the Companies Act, 2013 and the provisions of Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 (“the Rules”) notified by the Ministry of Corporate affairs effective September 7, 2016, all unpaid or unclaimed dividends are required to be transferred by the Company to the Investor Education and Protection Fund (“IEPF”) established by the Central Government, after completion of seven years. The Rules, inter alia, contain provisions for transfer of all shares in respect of which dividend has not been paid or claimed by the shareholders for seven consecutive years or more in the name of IEPF suspense account.
Details of shareholders' dividend outstanding for 7 consecutive years
Pursuant to Section 124 read with Rule 7 of the Investor Education and Protection Fund (IEPF) Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, a shareholder may claim the shares and unclaimed dividend so transferred to the IEPF Authority by making an application in form IEPF 5.
The procedure to claim the share(s) and dividend(s) is available here.
Pursuant to the amendment to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, it is mandatory to transfer or sell securities in dematerialized form from April 1, 2019. For more details, kindly refer to our page on "Mandatory Dematerialization of shares" here.
There is no restriction on holding shares in physical form. However, the transfer/trading of shares after March 31, 2019 would be done in electronic mode
Taxation of Dividend Distribution
Effective April 1, 2020, the dividend income is taxable in the hands of shareholders. Accordingly, if any resident individual shareholder is in receipt of dividend exceeding Rs. 5,000 in a fiscal year, entire dividend will be subject to TDS @ 7.5%. The rate of 7.5% is applicable provided the shareholder has updated his/her Permanent Account Number (PAN) with the depository. Otherwise the TDS rate will be 20%. If the dividend to a resident individual shareholder does not exceed Rs 5,000 in a fiscal year, then no tax will be deducted from the dividend.
Yes. The entire dividend will be subject to TDS for non-individual resident shareholders without any threshold limit. The tax deduction rate will be 7.5% provided PAN is updated with the company or the depository. Otherwise the TDS rate will be 20%.
For resident shareholders, the rate of TDS would not be increased by surcharge and cess. For non-resident shareholders, the rate of TDS would be increased by applicable surcharge and cess.
Yes. You can approach the Company for non-deduction of tax at source. You will have to furnish a declaration in Form No. 15G/15H, as the case may be, to the Company to the effect that the tax on the estimated total income of the FY 2020-2021 after including the income on which tax is to be deducted, will be NIL.
Forms 15G / 15H are available at www.incometaxindia.gov.in which need to be filled by the shareholders. Thereafter, the same can be sent at Csg-exemptforms@tsrdarashaw.com.
If the shares are held in Demat form, the PAN needs to be updated with the Depository. If the shares are held in physical form, the PAN needs to be updated with the Company’s Registrar and Transfer Agents at csg-unit@tsrdarashaw.com.
If the PAN is already updated, no further action is required.
To know the quantum of tax deducted, the Company will provide a TDS Certificate in respect of the tax deducted. Shareholders can also check Form 26AS from their e-filing accounts at https://incometaxindiaefiling.gov.in
Shareholders can also use the “View Your Tax Credit” facility available at www.incometaxindia.gov.in. Please note, the credit in form 26AS would be reflected after the TDS Return is filed on a quarterly basis by the Company, and the same is processed by the Income-tax department.
For non-resident shareholders, the rate of withholding tax is 20% (plus applicable surcharge and cess) as per Indian Income- tax Act, 1961. However, where a non-resident shareholder is eligible to claim the tax treaty benefit, and the tax rate provided in the respective tax treaty is beneficial to the shareholder, then the rate as per the tax treaty would be applied. In order to avail tax treaty benefits, non-resident shareholders would be required to submit certain documents (Refer Question 11 for the same). However, tax shall be deducted at source @20% (plus applicable surcharge and cess) on dividend paid to Foreign Institutional Investors (“FIIs”) and Foreign Portfolio Investors (“FPIs”) in view of specific provision under section 196D of the Income tax Act 1961.
Please note that there is no threshold provided for which no tax will be withheld. Entire dividend is subject to withholding of tax.
Yes, in case of non-resident shareholders, the rate of 20% would be increased by applicable surcharge based on the status of the non-resident (Please see Q.10 for applicable surcharge rates) and a cess of 4%.
The rate of surcharge depends upon the status of the non-resident and its income.
For Non-resident Individuals, HUF, AOP, BOI, the rate of surcharge is as under:
Income Slab | Rate of Surcharge (Non-FII/FPI) | Rate of Surcharge (FPI) |
Above ₹ 50 Lacs but not exceeding ₹ 1 Crore | 10% | 10% |
Above ₹ 1 Crore but not exceeding ₹ 2 Crore | 15% | 15% |
Above ₹ 2 Crore but not exceeding ₹ 5 Crore | 15% | 25% |
Above ₹ 5 Crore | 15% | 37% |
For body corporates, the rate of surcharge is as under:
Income Slab | Rate of Surcharge |
Above ₹ 1 Crore but not exceeding ₹ 10 Crores | 2% |
Above ₹ 10 Crores | 5% |
Cess shall be applicable at 4 % on surcharge as above, in all cases.
Non-resident shareholders who are tax residents of countries which have signed Double Taxation Avoidance Agreements (DTAAs) with India are eligible for a relief at the concessional rate of TDS (if any), as per the applicable Tax Treaty.
Following documents are required for availing the concessional rate of withholding tax:
Tax Residency Certificate for the year in which the dividend is received (to be obtained from the Revenue / Tax authorities of the country of which the shareholder is resident)
Form 10F as per the format specified under Income Tax Act, 1961
Self Declaration for the year in which dividend is received.
Primarily, following should be covered in the self declaration:
Non-resident is eligible to claim the benefit of the respective tax treaty
Non-resident receiving the dividend income is the beneficial owner of such income
Dividend income is not attributable/effectively connected to any Permanent Establishment (PE) or Fixed Base in India.
Please note that the Company is not obligated to apply the beneficial DTAA rates at the time of tax deduction/withholding on the dividend amount. Application of beneficial DTAA Rate shall depend upon the completeness and satisfactory review by the Company, of the documents submitted by the non- resident shareholder.
Specimen of Form 10F and self declaration are attached below:
A non-resident wishing to claim concessional rate benefit under the Treaty should submit the documents at the start of every year or before the record date of declaring dividend with the company.
To know the quantum of the tax deducted, the Company will provide a TDS Certificate in respect of the tax deducted. Shareholders can also check Form 26AS from their e-filing accounts at https://incometaxindiaefiling.gov.in
Shareholders can also use the “View Your Tax Credit” facility available at www.incometaxindia.gov.in Please note, the credit in form 26AS would be reflected after the TDS Return is filed on a quarterly basis by the Company, and the same is processed by the Income-tax department.
Management Commentary