Financial Statement Analysis With Reference To TCS LTD: Ms .Archana Kondguli

International E Conference on Adapting to the New Business Normal – The way ahead
December 3-4, 2020 Mysuru, India
Financial statement analysis with reference to TCS ltd
Ms .Archana kondguli
Student
KLE’s IMSR, Hubli
Email:[email protected]
Prof. Pramod S.G

Asst Professor, KLE’s IMSR, Hubli
Email:[email protected]
Abstract
Financial ratios are the important technique of the financial analysis of a business organization.
Effective financial management is the key of running a financially successful business., this
paper aims to be “A study on analysis of financial statement using ratio’’ selected sectors has
TCS ltd . IT Sector Information technology, and the hardware and software associated with
the IT industry, Tata group an India information technology consulting and business solutions
company which operates in 46 countries worldwide...On 25 august 2004 TCS became a publicly
listed company. The main objective of the study is to determine liquidity and profitability of the
company through ratio analysis. To study the financial position and to compare the 10 years
performance of the company using ratio .the scope of the study is towards identifying
important areas of control and to establish model for better control of the various components
of Ratio analysis. Research methodology collected from the published Annual Report BSE
website secondary data Internet (web site :www bseindia.com, google.com, slideshare.com)
etc The term “Ratio” refers to the numerical and quantitative relationship between two items
or variables Liquidity ratio Activity ratio, leverage ratio, Profitability ratio. Current ratio and
quick ratio of the TCS is below satisfactory level it shows that the current asset are insufficient
and it also shows liquidity position the company is week so it should increase investment in
current asset The company should maintain proper cash balances to run the day to day
activities Conclusion after , it is concluded that financial ratios are the basic and most important
part of any business .it describes the firms financial position .as the data indicates customers
and also internationally distributed it also has helps less risk but some time failed to maintain
the some position in the other hand company give high rate of returns it gain high profit all the
company have the swot analysis strategy . it is critical for helping you understand financial
statements, for identifying trends over time, and for measuring the overall financial health of
the business.
Keyword : industry analysis, company analysis, ratio analysis, comparative statements analysis.
ISBN: 978-93-83302-47-5 1
INDUSTRY PROFILE
Information Technology (IT) can be defined as the utilization of hardware, services and
infrastructure to create, store, exchange and leverage information in various forms to
accomplish any number of business objectives. Additionally, the term encompasses the workers
that develop, implement, maintain and utilize information technology directly indirectly.
Information technology the hardware and software associated with the IT industry, are an
integral part of nearly every major global industry. Information Technology in India is
an industry consisting of two major components: IT services and business process outsourcing
(BPO) Information Technology is an industry which transforms the humans multi skilled talents
into commercial one with the help of computers and other supporting equipment. It is the
process of establishing and interpreting various financial analyses helping in creation of certain
decisions. The analysis also is not an end in itself. It is only a means of improved kind of
financial strengths and weaknesses of a firm. Well-organized operation of skilled labour forces
in the IT sector can help an economy realize a rapid. The IT industry helps many other sectors in
the growth development of the economy including the services and developed sectors. They
are also attracted in firm’s financial structure to the extent it affects firm’s earning and risk.
Management of the firm would be interested in every aspect of the financial analysis. It is their
responsibility to see that the funds are used most effectively and efficiently, and the firm’s
financial situation is sound. Government is also interested in financial analysis report of the
companies for various purposes. The investors get sufficient idea to decide concerning the
investments of their funds in the exact company There is an Impression that is India is world
class in information technology. This is mainly due to the success of India’s software industry
and contribution of people of India origin in IT revolution in the United States. The fact IT sector
in the country has increased at an incredible rate of 35 % per year for the last 10 years
reinforces the view that India is the world class in IT. At the same time, India remains a poor
country both in terms of the per capita income (PCI) and the human development index (HDI).
The global sourcing market in India continues to grow at a higher pace compared to the IT-BPM
industry. India is the leading sourcing destination across the world, accounting for
approximately 55 per cent market share of the US$ 185-190 billion global services sourcing
business in 2017-18. Indian IT & IT companies have set up over 1,000 global delivery centers in
about 80 countries across the world
INTRODUCTION
TATA CONSULTANCY SERVICES LTD. Tata Consultancy Services Limited (TCS) is the is a leader in
the global marketplace and among the top 10 technology firms in the world. Its continued rapid
growth is a testament to the certainty its clients experience every day. Building on more than
ISBN: 978-93-83302-47-5 2
40 years of experience, TCS add real value to global organization through domain expertise plus
solutions with proven success in the field and world-class service. TCS is an Indian multinational
information technology (IT) services, business solutions and outsourcing Services Company
headquartered in Mumbai, Maharashtra.TCS is a subsidiary of the Tata Group and is listed on
the Bombay Stock Exchange and the National Stock Exchange of India. It is one of India’s most
valuable companies and is the largest India-based IT services company by 2012 revenues. It was
founded in 1968.Its founder was JRD TATA. It’s headquarter is in Mumbai, Maharashtra, India.
Its key people are: Ratan Tata (Chairman). TCS operates in 46 countries. TCS is now placed
among the ‘Big 4’ most valuable IT services brands worldwide.TCS is one of the largest private
sector employers in India, and the second-largest employer among listed Indian companies.TCS
had a total of over 300,000 employees as of March 2015, of which 31% were women. IT
employer behind IBM and HP. TCS’s e business activities were generating over US$ 500 million
in annual revenues. TCS deputes its employees abroad for rendering on site services at the
clients’ places, world-leading information technology consulting, services, and business process
outsourcing organization that envisioned and pioneered the adoption of the flexible global
business practices that today enable companies to operate more efficiently and produce more
value.TCS commenced operations in 1968, when the IT services industry didn’t exist as it does
today. Now, with a presence in 34 countries across 6 continents, & a comprehensive range of
services across diverse industries, TCS is one of the words leading Information Technology
companies. Six of the Fortune top 10 companies are among their valued customers
Mission
To help customers achieve their business objectives by providing innovative, best-in-class

consulting, IT solutions and services. To be one of the top 10 global companies by 2010
Vision
TCS vision is to decouple business growth and ecological foot print from its operations to
address the environment bottom-line, our mantra is to grow sustainably and help our
customers achieve sustainable growth through our green solutions and service offerings
SCOPE OF THE STUDY
The IT industry can serve as a middle of e-governance, as it assures easy convenience to

information. The use of information technology in the service sector improves operational
efficiency and adds to transparency. It also serves as a middle of skill structure. Growth of IT
industries gets awareness from every corner. Example: job-seekers, Investors, government,
competitors etc, and all requirements financial analysis of the companies for different
ISBN: 978-93-83302-47-5 3
purposes. Hence this research paper presents “A study on financial position and performance
analysis with special reference to Tata Consultancy Services”
OBJECTIVES OF MY RESEAECH
✓ To understand financial position of Tata Consultancy service based on different ratios

analysis for the last 10 years .
Research Methodology
Desk Research method is adopted for this study. The required information was collected
through secondary sources
Secondary data were collected from various sources including the annual reports of the
company
Data collection tools
Secondary data:
• . The data relating to TCS has been collected from the published annual report The data
relating to financial statements
• Internet (web site: cityhr.com, google.com, slideshare.com) etc.
RATIO ANALYSIS
Ratio analysis is the process of examining and comparing financial information by calculating
meaningful financial statement figure percentages instead of comparing line items from each
financial statement.
ANALYSIS AND INTERPRETION

Current ratio
• The current ratio is a liquidity ratio that measures a company's ability to pay short-
term and long-term obligations. The formula for calculating a company’s current
ratio is:
i) Current Ratio: Current Ratio = Current Assets
current liabilities
ISBN: 978-93-83302-47-5 4
Rs,( in cr)
Year Current asset Current liabilities Current ratio
2009-10 15788.88 8393.36 1.88
2010-11 21880.73 7604.58 2.87
2011-12 23275.09 10465.01 2.22
2112-13 31576.56 11842.81 2.66
2013-14 42897.69 15670.31 2.73
2014-15 48813 20318.24 2.40
2015-16 63067.39 21975.51 2.86
2016-17 68619 10701 6.41
2017-18 81224 17828 4.5
2018-19 92131 22084 4.17
Table 1
“Current ratio” source annual report Tcs ltd (2009 to 2019)
ISBN: 978-93-83302-47-5 5
Graph 1
diagrammatic representation of current ratio 2009-19
INTERPRETATIONS:
The current ratio in 2010 was not good in position it shows below the standard ratio (i.e. 1.87
times) but at present after 9 year in 2019 it is above the standard ratio i.e.4.17 times. At
present company is in good position it can manage all liabilities.
Quick ratio
The quick ratio is an indicator of the company’s short term liquidity position and measures a
company ability to meet its short term obligations with liquid asset
Quick ratio = current assets ---- inventory
Current liabilities
ISBN: 978-93-83302-47-5 6
Rs ( in cr)
Year Quick assets Quick liabilities Quick ratio
2009-10 10766.16 7239.25 1.87
2010-11 21857.91 7604.58 2.87
2011-12 23257.32 10465.01 2.22
2112-13 31555.41 11842.8 2.66
2013-14 42882.48 15670.31 2.73
2014-15 48796.93 20318.24 2.40
2015-16 63051.12 21975.51 2.86
2016-17 68598 10701 6.41
2017-18 55.224 17828 4.55
2018-19 92121 22084 4.17
Table 2
“Quick ratio” source annual report Tcs ltd (2009 to 2019)
ISBN: 978-93-83302-47-5 7
Graph 2
diagrammatic representation of quick ratio 2009-19
INTERPRETATIONS
The above graph shows the company’s Quick or Liquid Ratio. According to the above data
company is not capable to pay its debts through liquid assets. Quick ratios of all the years
(2014 to 2015) showing below the standard . From 2015-2016 company’s Quick
Ratio was in above standard . But in 2016 and 2017 it is 6.14 Quick Ratio got some
improvement
i)INVENTORY TURN OVER RATIO
inventory turn over ratio sales
closing inventory
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Rs ( in cr)
Year Sales Average Activity turn

inventory over ratio
2009-10 30300.99 17.79 1703
2010-11 37928.51 22.82 1662
2011-12 4932200 17.77 2775
2012-13 64167.71 21.15 3033
2013-14 83446.1 15.21 5486
2014-15 97878.32 16.07 6090
2015-16 111700.08 16.27 6865
2016-17 97267 21.00 4631
2017-18 126.746 26.00 4874
2018-19 150.774 10.0 1507
Table 3
“Inventory turn over ratio” source annual report Tcs ltd (2009 to 201
ISBN: 978-93-83302-47-5 9
Graph 3
diagrammatic representation of inventory turn over ratio
Interpretation
The above graph shows the company’s inventory turn over ratio. According to the above data
company from 2009-2011 it is constant .inventory turn over ratios in the years
(2014 to 2016)it is showing upward standard and in the last 2 years it is slowing down inventory
turn over Ratio can ensure that things are going well with business.
DEBTORS TURNOVER RATIO
Debtors turn over ratio = net creditors sales
Average debtor
ISBN: 978-93-83302-47-5 10
Rs(cr)
Year Net credit sales Average Debtors turn

debtors over ratio
2009-10 30300.99 5855.41 5.1
2010-11 37928.51 8198.84 4.6
2011-12 4932200 11520.35 4.2
2012-13 64167.71 14076.56 4.5
2013-14 83446.1 18230.4 4.5
2014-15 97878.32 20437.94 4.7
2015-16 111700.08 24069.71 4.6
2016-17 97261 16649 5.8
2017-18 126.746 94.00 1.3
2018-19 150.774 27346 0
Table 4
“Debtors turn over ratio” source annual report Tcs ltd(2009to 2019)
ISBN: 978-93-83302-47-5 11
Graph 4
diagrammatic representation of Dtr ratio 2009-19
The debtors’ turnover ratio revels that in the year 2009 it is 5.1 and in the( 2010-11)has been
decreased to 4.6 to 4.2 and in the year 2013-17 it has increased 4.5 to 5.8 and it in the year 17-
18
Slow down to 1.3
ii) Average collection period
average collection period = 365
debtors turn over ratio
ISBN: 978-93-83302-47-5 12
Rs. (in cr)
Year No of days DTR Debtors collection

period
2009-10 365 5.1 71
2010-11 365 4.6 79
2011-12 365 428 0.8
2012-13 365 4.5 81
2013-14 365 4.5 81
2014-15 365 4.7 77
2015-16 365 4.6 79
2016-17 365 5.8 62
2017-18 365 1.3 280
2018-19 365 0 0
Table 5 annual report Tcs ltd(2009to 2019)
Graph 5. diagrammatic representation of Dcp ratio 2009-1

ISBN: 978-93-83302-47-5 13
INTERPRETATION:
The ratio indicates the average number of days for which a firm has to wait before its
receivables is converted in to cash. The dcp having average collection period in the year
, 2014-15 and 2015 ,is 79days the days of collection performance which in adversely affect little
bit to the liquidity of the firm again It has been increased in the year 17-18 that is 280 days.
III. PROFITABILITY RATIOS
i) Gross profit ratio
ii) Net profit ratio
Gross Profit = G P___

Net Sales
Rs (in cr)
Year Gross profit Net sale
2009-10 30961.88 30300.99 1.02
2010-11 38663.77 37928.51 1.01
2011-12 4933118 4932200 1.00
2012-13 6547.63 64167.71 0.10
2013-14 84795.25 83446.1 1.01
2014-15 99677.01 97878.32 1.01
2015-16 113648 111700.08 1.01
ISBN: 978-93-83302-47-5 14
2016-17 1575 97261 0.01
2017-18 2140.746 126.746 16.8
2018-19 2206.774 150.774 14.6
Table 6
Gross profit source annual report Tcs ltd(2009to 2019)
Graph 6
diagrammatic representation of gross ratio 2009-19
ISBN: 978-93-83302-47-5 15
Interpretation
. High ratio of gross profit to sales is a sign of good management, The gross profit margin has
improved during 2017 it was 16.8, compared to previous 8 years, which was very low and 2017
and for 2018 there is a increase of 16.8 and in the year 2018 it has again decreased to 14.6
respectively.
1) Operating profit ratio = EBIT

sales
Rs (in cr)
Year EBIT SALES operating profit ratio
2009-10 8289.63 30300.99 0.2
2010-11 11020.62 37928.51 0.2
2011-12 13923.31 4932200 0.0
2012-13 18089.73 64167.71 0.2
2013-14 25401.86 83446.1 0.3
2014-15 26298.49 97878.32 0.2
2015-16 3167.87 111700.08 0.0
2016-17 30066 97261 0.3
2017-18 8212 126.746 6.4
ISBN: 978-93-83302-47-5 16
2018-19 41563 150.774 2.7
Table 7
‘Operating ratio source annual report Tcs ltd(2009to 2019)
Graph .7
diagrammatic representation Operating profit ratio 2009-19
Interpretation:
A high net profit margin would ensure adequate return to the owners as well as enable
a firm to withstand adverse economic condition, when selling price is declining, cost of
production is raised and demand for the product is falling. And in all the years the ratio for the
year 2017-18 is increased 6.4
ISBN: 978-93-83302-47-5 17
IV. LEVERAGE RATIO
DEBT EQUITY RATIO
Debt equity ratio = total debt
Shareholders equity
Rs(in cr)
Year total debt share holders equity debt turn over ratio
2009-10 19000.36 18466.72 1.02
2010-11 2514.27 24504.81 0.10
2011-12 41394.49 29579.23 1.39
2012-13 52267.22 38645.73 1.35
2013-14 67137.78 49194.76 1.36
2014-15 73660.88 50634.76 1.45
2015-16 89384.38 65360.56 1.36
2016-17 23956 3784.55 6.32
2017-18 106296 25880 4.1
2018-19 114943 89446 1.28
Table 8
“ Debt equity ratio ,annual report Tcs ltd(2009to 2019)
ISBN: 978-93-83302-47-5 18
graph 8
Diagrammatic representation of debt turn ratio debt turn ratio 2009-19
DEBT RATIO
Debt ratio= total liabilities
Total asset
Rs(in cr)
Year Total debt ratio net asset Debt ratio
2009-10 19000.36 19000.36 1
2010-11 14276.15 14276.15 1
2011-12 41394.49 41394.49 1
2012-13 52267.22 52267.22 1
2013-14 67137.78 67137.78 1
ISBN: 978-93-83302-47-5 19
2014-15 73660.88 73660.88 1
2015-16 89384.38 89384.38 1
2016-17 89758 85758 1
2017-18 106296 106296 1
2018-19 114943 114943 1
Table 9
Debt ratio source annual report Tcs ltd(2009to 2019)
Graph 9
Diagrammatic representation of debt ratio 2009-19
ISBN: 978-93-83302-47-5 20
Interpretation:
The debt to net asset ratio, in all the years it is one hence The debt to net asset ratio has
equal in all the years basis, but it is higher almost 90% of the assets value. Hence net assets is
more. A high ratio indicates company’s inability to balance its debt to assets.
PROPRIETARY RATIO
Proprietary ratio = _ _proprietary fund x 100

Total Assets
Rs(in cr)
Year Proprietary fund Total asset Proprietary ratio
2009-10 18466.72 19000.36 97
2010-11 24504.81 25147.27 97
2011-12 29579.23 41394.49 71
2012-13 38645.73 52267.22 73
2013-14 49194.76 67137.78 73
2014-15 50634.76 73660.88 68
2015-16 65360.56 89384.38 73
2016-17 3784.55 89758 86
2017-18 25880 106296 24
2018-19 89446 114943 77
Table 10
Proprietary ratio’’ source annual report Tcs ltd(2009to 2019)
ISBN: 978-93-83302-47-5 21
Graph 10
diagrammatic representation of Propritery ratio 2009-19
Propritery ratio 2009-19
Interpretation
The above table shows, the proprietary ratio that the proprietary fund is less, compared
to total assets it means the company is able to meets its proprietary obligation in the year. The
proprietary’ turnover ratio revels that in the year 2009 to 10 it is 97 in the year 12 to 14 it has
been decreased 68 and it is increased in the year 16-17 it is 86 and in the year 17 -18 is
decreased to 24 and in the year 18-19 it is increased to 77
Total Capital Turn over Ratio
total capital turn over ratio = sales

capital employed
ISBN: 978-93-83302-47-5 22
Rs(in cr)
capital turn over

Year Sales capital employed ratio
2009-10 30300.99 10606.5 2.8
2010-11 37928.51 6671.57 5.6
2011-12 4932200 30929.48 1.5
2012-13 64167.71 40424.41 1.5
2013-14 83446.1 51467.47 1.6
2014-15 97878.32 53342.64 1.8
2015-16 111700.08 67408.87 1.6
2016-17 3160.23 79057 1,2
2017-18 126.746 88468 0
2018-19 150.774 92859 0
Table11
Capital turn over ratio source annual report Tcs ltd(2009to 2019)
ISBN: 978-93-83302-47-5 23
Graph 11
Diagrammatic representation of Capital turn over ratio 2009-19
Interpretation:
the total capital turn over ratio that is less, compared to total assets it means the company is
able to meets its proprietary obligation in the year. The total capital turnover ratio revels that
in the year 2009 it was 2.8 and in the 2010 it is increased to 5.6 and in the year 2011 it has
decreased to 1.5 and in year 2012 it same and in the year 2013 it is increase to 1.6 and in the
year 2014 it is increased 1.8 and in the year 2015 it is decreased to 1.6 and in the year 2016 it
decreased to 1,2 and in the year 2017 and 2018 it is nill as compare to all the years 2010-11 is
increasing
RETURN ON ASSET RATIO
Return on asset ratio = net sales
Total asset
ISBN: 978-93-83302-47-5 24
Rs(in cr)
Year net sales total asset return on asset ratio
2009-10 30300.99 19000.36 1.5
2010-11 37928.51 14276.15 2.6
2011-12 4932200 52267.22 9.4
2012-13 64167.71 52267.22 1.2
2013-14 83446.1 67137.78 1.2
2014-15 97878.32 73660.88 1.3
2015-16 111700.08 89384.38 1.2
2016-17 97261 89758 1.0
2017-18 126.746 106296 0.0
2018-19 150.774 114943 0.0
Table 12
Return on asset ratio annual report Tcs ltd(2009to 2019)
ISBN: 978-93-83302-47-5 25
Graph 12
Interpretation:
the return on asset ratio is in the year 2009 it was 1.5 and in the year 2010 it is increased to
2.6 and in the year2011 it is increased 94and in the year 2012 it has decreased to 1.2 and in
year 2012 it same and in the year 2013 it is decrease to 1.2 and in the year 2014 it is increased
1.4 and in the year 2015 it is decreased to 1.2 and in the year 2016 it decreased to 1.0 and in
the year 2017 and 2018 it is 0 as compare to all the years 2010-11 is increasing .
Working capital ratio
Working capital ratio = current asset
Current liabilities
ISBN: 978-93-83302-47-5 26
Rs(in cr)
Year current asset current liabilities current ratio
2009-10 15788.88 8393.86 1.8
2010-11 21880.73 7604.58 2.8
2011-12 23275.09 10465.01 2.2
2012-13 31576.56 11842.81 2.6
2013-14 42897.69 15670.31 2.7
2014-15 48813 20318.24 2.4
2015-16 63067.39 21975.51 2.8
2016-17 68619 10701 6.4
2017-18 81224 17828 4.5
2018-19 92131 22084 4.1
Table no 13 annual report Tcs ltd(2009to 2019)
ISBN: 978-93-83302-47-5 27
Graph 13

Interpretation:
Working capital ratio is in the year 2009 it was 1.8 and in the year 2010 it is increased to
2.8and in the year2011 it is decreased 2.2 and in the year 2012 it is increased 2.6 and in the
year 2013 it has increased to 2.7 and in year 2014 it is decreased 2.4 and in the year 2014 it is
decrease to 2.4 and in the year 2015 it is increased 2.8 and in the year 2016 it is increased to
6.4 and in the year 2017 it decreased to 4.5 and in the year 2018 it is decreasing 4.1 compare
to all the years 2016 is increasing
Coverage Ratio:
Coverage = Interest Coverage Ratio:
EBIT
ISBN: 978-93-83302-47-5 28
Rs(in cr)
Year EBIT Interest Coverage ratio
2009-10 8289.63 16.1 514.
2010-11 11020.62 26 423
2011-12 13923.31 109 127
2012-13 25401.86 158 160
2013-14 26298.49 168 156
2014-15 25401.86 207 122.
2015-16 31675.87 83 381
2016-17 30.066 6413 0.00
2017-18 34092 8212 4.15
2018-19 41.563 1000 0.04
Table no 14
EBIT source annual report Tcs ltd(2009to 2019)
table no 14
ISBN: 978-93-83302-47-5 29
Interpretation:
In the coverage ratio in year 2009 it was 514 and in the year 2010 it is decreased to 423 and
in the year 2011 it is decreased by 109 and in the year 2012 it has increased by 160 and in year
2012 it same and in the year 2013 it is decrease to 159 and in the year 2014 it is decreased 122
and in the year 2015 it is increased to 381 and in the year 2016 to 18 it is nill .
FINDINGS
1. Current ratio The current ratio in 2010 was not good in this position it shows below the
standard ratio 1.87 times but at present after 9 year in 2019 it is above the standard
ratio i.e.4.17 times. At present company is in good position it can manage all liabilities.
2. Quick ratio The above graph shows the company’s Quick or Liquid Ratio. According to the above
data company is not capable to pay its debts through liquid assets. Quick ratios of all the
years(2014 to 2015) showing below the standard . From 2015-2016 company’s Quick
Ratio was in above standard . But in 2016 and 2017 it is 6.14 Quick Ratio got some
improvement
3. Inventory turn over ratio The above graph shows the company’s inventory turn over
ratio. According to the above data company from 2009-2011 it is constant .inventory
turn over ratios in the years(2014 to 2016)it is showing upward standard and in the last
2 years it is slowing down inventory turn over Ratio can ensure that things are going
well with business.
4. The debtors’ turnover ratio revels that in the year 2009 it is 5.1 and in the( 2010-11)has
been decreased to 4.6 to 4.2 and in the year 2013-17 it has increased 4.5 to 5.8 and it in
the year 1.7 Slow down to 1.3
5. The ratio indicates the average number of days for which a firm has to wait before
itsreceivables is converted in to cash. The DCP having average collection period in the
year 2014-15 and 2015 ,is 79days the days of collection performance which in adversely
affect little bit to the liquidity of the firm again It has been increased in the year 17-18
that is 280 days
ISBN: 978-93-83302-47-5 30
CONCLUSION
It is concluded that financial ratios are the basic and most important part of any business .it
describes the firms financial position .as the data indicates that the TCS is a international
services and has expanded its service on the offers the large rage of product but on the other
side
TCS gains the customer trust and also offers the large range of product but also orders side the
customer trust the wide range of services in the software the reasonable price and more
customers relation and friendly
The financial statement it is clear that the financial position of TCS It is more preferred by the
customers and also internationally distributed it also has helps less rick but some time failed to
maintain the some position in the other hand company give high rate of returns because it gain
high profit all the company have the swot analysis
The financial performance of a company could be assessed by examining its liquidity

profitability and growth Liquidity is the ability of the firm to meet its liabilities. It helps the
creditors, banks and other financial institutions to make decisions on lending to the concerned
firm Profitability
The ability of the firm in earning profits and its efficiency to utilize the assets towards
maximizing the profits. The study concludes that “TATA CONSULTANCY SERVICES” liquidity and
solvency position are considered satisfactory.
REFERENCE
1.GJRA - GLOBAL JOURNAL FOR RESEARCH ANALYSIS X 101 Volume-4, Issue-7, July-2015 • ISSN No 2277
‘..Introduction’
2.Dr.Rupesh Kumbhaj*, Dr.Yuvraj Kumbhaj* Financial Analysis of Tcs And Wipro With Respect To Ratio
Analysis Altius Shodh Journal of Management & Commerce ISSN 2348 – 8891 ‘company profile’
3.A comparative study between TCS & Infosys, Indian Journal of Applied Research, Volume
:3/Issue:11/Nov2013/ISSN -2249 – 555X’ Research metholodgy”
4.http://www.tcs.com/investors/Documents/Financial%20Statements/TCS_IFRS_Q4_13_USD
PDF|http://www.tata.in/company/profile/Tata-Consultancy-Services
http://www.moneycontrol.com/financials/tataconsultancyservices/balance-sheet/TCS#TCS
http://www. moneycontrol.com/stocks/company_info/print_main.php ‘’Current ratio”
5.http;//Wikipedia.org/wiki/cashflow statement|
6.http;//www,investopedia.com/articles
ISBN: 978-93-83302-47-5 31

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Financial Statement Analysis With Reference To TCS LTD: Ms .Archana Kondguli

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International E Conference on Adapting to the New Business Normal – The way ahead

December 3-4, 2020 Mysuru, India

Financial statement analysis with reference to TCS ltd

Prof. Pramod S.G

To help customers achieve their business objectives by providing innovative, best-in-class

SCOPE OF THE STUDY

The IT industry can serve as a middle of e-governance, as it assures easy convenience to

✓ To understand financial position of Tata Consultancy service based on different ratios

ANALYSIS AND INTERPRETION

i) Current Ratio: Current Ratio = Current Assets

Year Current asset Current liabilities Current ratio

2009-10 15788.88 8393.36 1.88

2010-11 21880.73 7604.58 2.87

2011-12 23275.09 10465.01 2.22

2112-13 31576.56 11842.81 2.66

2013-14 42897.69 15670.31 2.73

2014-15 48813 20318.24 2.40

2015-16 63067.39 21975.51 2.86

2016-17 68619 10701 6.41

2017-18 81224 17828 4.5

2018-19 92131 22084 4.17

“Current ratio” source annual report Tcs ltd (2009 to 2019)

diagrammatic representation of current ratio 2009-19

present company is in good position it can manage all liabilities.

Quick ratio = current assets ---- inventory

Year Quick assets Quick liabilities Quick ratio

2009-10 10766.16 7239.25 1.87

2010-11 21857.91 7604.58 2.87

2011-12 23257.32 10465.01 2.22

2112-13 31555.41 11842.8 2.66

2013-14 42882.48 15670.31 2.73

2014-15 48796.93 20318.24 2.40

2015-16 63051.12 21975.51 2.86

2016-17 68598 10701 6.41

2017-18 55.224 17828 4.55

2018-19 92121 22084 4.17

“Quick ratio” source annual report Tcs ltd (2009 to 2019)

diagrammatic representation of quick ratio 2009-19

i)INVENTORY TURN OVER RATIO

inventory turn over ratio sales

Year Sales Average Activity turn

2009-10 30300.99 17.79 1703

2010-11 37928.51 22.82 1662

2011-12 4932200 17.77 2775

2012-13 64167.71 21.15 3033

2013-14 83446.1 15.21 5486

2014-15 97878.32 16.07 6090

2015-16 111700.08 16.27 6865

2016-17 97267 21.00 4631

2017-18 126.746 26.00 4874

2018-19 150.774 10.0 1507

diagrammatic representation of inventory turn over ratio

DEBTORS TURNOVER RATIO

Debtors turn over ratio = net creditors sales

Year Net credit sales Average Debtors turn

2009-10 30300.99 5855.41 5.1

2010-11 37928.51 8198.84 4.6

2011-12 4932200 11520.35 4.2

2012-13 64167.71 14076.56 4.5