To the Members,
The Directors present this Integrated Annual Report of Tata Consultancy Services
Limited (the Company or TCS) along with the audited financial statements for the financial
year ended March 31, 2022.
To support Green initiative, the Abridged Integrated Annual Report has been sent
to the Members whose e-mail ids are not registered with the Company / Depositories.
The consolidated performance of the Company and its subsidiaries has been referred to
wherever required.
1. Financial results
(Rs.in crore)
|
Standalone |
Consolidated |
|
Financial Year 2021-22 |
Financial Year 2020-21 |
Financial Year 2021-22 |
Financial Year 2020-21 |
|
(FY 2022) |
(FY 2021) |
(FY 2022) |
(FY 2021) |
Revenue from operations |
1,60,341 |
1,35,963 |
1,91,754 |
1,64,177 |
Other income |
7,486 |
5,400 |
4,018 |
3,134 |
Total income |
1,67,827 |
1,41,363 |
1,95,772 |
1,67,311 |
Expenses |
|
|
|
|
Operating expenditure |
1,14,096 |
95,653 |
1,38,697 |
1,17,631 |
Depreciation and amortisation expense |
3,522 |
3,053 |
4,604 |
4,065 |
Total expenses |
1,17,618 |
98,706 |
1,43,301 |
1,21,696 |
Profit before finance costs, exceptional item and tax |
50,209 |
42,657 |
52,471 |
45,615 |
Finance costs |
486 |
537 |
784 |
637 |
Profit before exceptional item and tax |
49,723 |
42,120 |
51,687 |
44,978 |
Exceptional item |
|
|
|
|
Provision towards legal claim |
- |
1,218 |
- |
1,218 |
Profit before tax |
49,723 |
40,902 |
51,687 |
43,760 |
Tax expense |
11,536 |
9,942 |
13,238 |
11,198 |
Profit for the year |
38,187 |
30,960 |
38,449 |
32,562 |
Attributable to: |
|
|
|
|
Shareholders of the Company |
38,187 |
30,960 |
38,327 |
32,430 |
Non-controlling interests |
NA |
NA |
122 |
132 |
Openina balance of retained earninas |
70,928 |
71,532 |
79,586 |
78,810 |
Closing balance of retained earninas |
68,949 |
70,928 |
78,158 |
79,586 |
2. COVID-19
The COVID-19 pandemic, continued to be a global challenge, creating disruption across
the world. In the first three months of FY 2022, the second wave of the pandemic
overwhelmed Indias medical infrastructure. Through this trying period, hospitalization
support was provided and Covid care centers were opened in TCS facilities in 13 cities to
help affected associates and their families. This was in addition to the medical
helplines, self-help and counseling services provided from the start of the pandemic.
Amid the pandemic, the Company launched a PAN-India vaccination drive for its employees
and their families to ensure the safety and well-being of the associates and their
families covering over a million individuals in all, across all the TCS locations and
smaller cities from where some of the employees were remote-working.
3. Return of surplus funds to Shareholders
In line with the practice of returning 80 to 100 percent free cash flow to shareholders
and based on the Companys performance, the Directors have declared three interim
dividends of 7 per equity share aggregating to 21 per equity share involving a cash
outflow of 7,768 crore during the year. The Directors have also recommended a final
dividend of 22 per equity share, the final dividend on equity shares, if approved by the
Members, would involve a cash outflow of 8,050 crore. The total dividend for FY 2022
amounts to 43 per equity share and would involve a total cash outflow of 15,818 crore,
resulting in a dividend payout of 41.4 percent of the standalone profits of the Company.
In addition to the above, the Company bought back 4,00,00,000 equity shares at a price
of 4,500 per equity share for an aggregate consideration of 18,000 crore. The offer size
of the buyback was 21.03 percent and 19.06 percent of the aggregate fully paid-up equity
share capital and free reserves as per audited condensed standalone interim financial
statements and audited condensed consolidated interim financial statements of the Company
as at December 31, 2021, respectively.
The buyback represented 1.08 percent of the total issued and paid-up equity share
capital of the Company as at December 31, 2021.
The settlement of bids and payment of buyback consideration was made on March 28, 2022
and the shares were extinguished on March 29, 2022.
The shareholders payout with respect to dividend and buyback including tax on buyback
(excluding transaction costs, other incidental and related expenses) aggregated to 38,010
crore, resulting in a payout of 99.5 percent of the standalone profits of the Company.
For FY 2021, the Company paid a total dividend of 38 per equity share, which resulted
in an outflow of 14,147 crore and a dividend payout of 44.3 percent* of the standalone
profits of the Company. In addition to the above, the Company bought back 5,33,33,333
equity shares at a price of 3,000 per equity share for an aggregate consideration of
16,000 crore. The offer size of the buyback was 19.96 percent and 18.11 percent of the
aggregate paid-up equity share capital and free reserves as per audited condensed
standalone interim financial statements and audited condensed consolidated interim
financial statements of the Company as at September 30, 2020, respectively.
The buyback represented 1.42 percent of the total issued and paid-up equity share
capital of the Company. The buyback process was completed and the shares were extinguished
on January 6, 2021.
The Dividend Distribution Policy, in terms of Regulation 43A of the Securities and
Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,
2015 ("SEBI Listing Regulations") is available on the Companys website at
https://on.tcs.com/ Dividend.
4. Transfer to reserves
The closing balance of the retained earnings of the Company for FY 2022, after all
appropriations and adjustments was 68,949 crore.
5. Companys performance
On a consolidated basis, the revenue for FY 2022 was 1,91,754 crore, higher by 16.8
percent over the previous years revenue of 1,64,177 crore. The profit after tax
("PAT") attributable to shareholders and non-controlling interests for FY 2022
and FY 2021 was 38,449 crore and 33,520 crore*, respectively. The PAT attributable to
shareholders for FY 2022 was 38,327 crore* registering a growth of 14.8 percent over the
PAT of 33,388 crore* in FY 2021.
On a standalone basis, the revenue for FY 2022 was 1,60,341 crore, higher by 17.9
percent over the previous years revenue of 1,35,963 crore. The PAT attributable to
shareholders in FY 2022 was 38,187 crore registering a growth of 19.6 percent over the
PAT of 31,918 crore* in FY 2021.
*Excluding provision towards legal claim.
6. Quality initiatives
The Company continues to sustain its commitment to the highest levels of quality,
superior service management, robust information security practices and mature business
continuity management.
TCS integrated Quality Management System (iQMS) continues to enable outstanding
value and experience to its customers. iQMS is continually enhanced for new service
offerings, emerging delivery methodologies, industry best practices and latest
technologies.
TCS successfully completed the annual ISO surveillance audit and has been recommended
for continuation of its enterprise-wide certification. This year, TCS has expanded the
scope of enterprise certification to include conformance to Privacy Information Management
Systems Standard (ISO 27701:2019). TCSs enterprise ISO certification scope includes
conformance to the following globally recognized standards:
ISO 9001:2015 (Quality Management), ISO 20000:2018 (IT Service Management), ISO
22301:2019 (Business Continuity Management), ISO 27001:2013 (Information Security
Management) and compliance to ISO 27017:2015 (Information Security Controls for Cloud
Services), ISO 27018:2019 (Protection of PII in Public Clouds as PII Processors) and ISO
27701:2019 (Privacy Information Management Systems).
During second wave of the pandemic, the Company was actively monitoring all customer
engagements across the globe to minimize risks and ensure continuity of services. This was
achieved through daily tracking, digitized multi-level dashboards and differentiated
governance of critical engagements.
The customer-centricity, rigor in operations and focus on delivery excellence have
resulted in sustained high customer satisfaction levels in the periodic surveys conducted
by the Company. This is validated by top rankings in third party surveys as well. In these
surveys, TCS achieved the top position in customer satisfaction for the ninth consecutive
year, with an overall satisfaction score of 84 percent compared to the industry average of
75 percent.
TCS has also received multiple awards from CII and National Institute for Quality and
Reliability this year. TCS won the Data Security Council of India (DSCI) Excellence Award
2021 in two categories - Best Privacy Practices in Organization and Best Security
Practices in IT-ITes/ BPM (Large).
7. Subsidiary companies
The Company has 52 subsidiaries as on March 31, 2022. There are no associates or joint
venture companies within the meaning of Section 2(6) of the Companies Act, 2013
("Act"). There has been no material change in the nature of the business of the
subsidiaries.
The name of W12 Studios Limited was changed to Tata Consultancy Services UK
Limited w.e.f. May 24, 2021.
On May 26, 2021, Tata Consultancy Services Netherlands B.V., a 100 percent
subsidiary of the Company, increased its equity stake to 100 percent in Tata Consultancy
Services Saudi Arabia on acquisition of Saudi Desert Rose Holding B.V.
Tata Consultancy Services Ireland Limited, a 100 percent subsidiary of the
Company, incorporated a wholly owned subsidiary, Tata Consultancy Services Bulgaria EOOD
in Bulgaria on August 31, 2021.
TCS Iberoamerica SA, a 100 percent subsidiary of the Company, incorporated a
subsidiary, Tata Consultancy Services Guatemala, S.A. in Guatemala on September 1, 2021.
The name of Postbank Systems AG changed to TCS Technology Solutions AG w.e.f.
December 27, 2021.
TCS e-Serve America, Inc. was liquidated w.e.f. December 29, 2021.
Pursuant to the provisions of Section 129(3) of the Act, a statement containing the
salient features of financial statements of the Companys subsidiaries in Form No. AOC-1
is attached to the financial statements of the Company.
Further, pursuant to the provisions of Section 136 of the Act, the financial statements
of the Company, consolidated financial statements along with relevant documents and
separate audited financial statements in respect of subsidiaries, are available on the
Companys website at https://www.tcs.com/investor-relations.
8. Directors responsibility statement
Pursuant to Section 134(5) of the Act, the Board of Directors, to the best of its
knowledge and ability, confirm that:
i. in the preparation of the annual accounts, the applicable accounting standards have
been followed and there are no material departures;
ii. they have selected such accounting policies and applied them consistently and made
judgments and estimates that are reasonable and prudent so as to give a true and fair view
of the state of affairs of the Company at the end of the financial year and of the profit
of the Company for that period;
iii. they have taken proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of the Act for safeguarding the
assets of the Company and for preventing and detecting fraud and other irregularities;
iv. they have prepared the annual accounts on a going concern basis;
v. they have laid down internal financial controls to be followed by the Company and
such internal financial controls are adequate and operating effectively;
vi. they have devised proper systems to ensure compliance with the provisions of all
applicable laws and that such systems are adequate and operating effectively.
Based on the framework of internal financial controls and compliance systems
established and maintained by the Company, the work performed by the internal, statutory
and secretarial auditors and external consultants, including the audit of internal
financial controls over financial reporting by the statutory auditors and the reviews
performed by management and the relevant board committees, including the audit committee,
the Board is of the opinion that the Companys internal financial controls were adequate
and effective during FY 2022.
9. Directors and key managerial personnel
The Board of Directors at its meeting held on October 8, 2021, subject to approval of
the shareholders, approved the re-appointment of Rajesh Gopinathan (DIN 06365813) as the
Chief Executive Officer and Managing Director of the Company for a further period of five
years from February 21, 2022 and re-appointment of N Ganapathy Subramaniam (DIN 07006215)
as Chief Operating Officer and Executive Director from February 21, 2022 to May 19, 2024,
as per the retirement age policy for the Directors of the Company.
N Ganapathy Subramaniam (DIN 07006215) retires by rotation and being eligible, offers
himself for re-appointment. A resolution seeking shareholders approval for his
re-appointment along with other required details forms part of the Notice.
Pursuant to the provisions of Section 149 of the Act, the independent directors have
submitted declarations that each of them meet the criteria of independence as provided in
Section 149(6) of the Act along with Rules framed thereunder and Regulation 16(1)(b) of
the SEBI Listing Regulations. There has been no change in the circumstances affecting
their status as independent directors of the Company.
During the year under review, the nonexecutive directors of the Company had no
pecuniary relationship or transactions with the Company, other than sitting fees,
commission and reimbursement of expenses, if any.
Samir Seksaria took over as the Chief Financial Officer, with effect from May 1, 2021,
in place of V Ramakrishnan, who retired from the services of the Company w.e.f. April 30,
2021.
Samir Seksaria has been with TCS since 1999 and has held various positions in business
consulting and finance. He is a commerce graduate from Narsee Monjee College, Mumbai and a
member of the Institute of Chartered Accountants of India.
During the year under review, the Board at its meeting held on October 8, 2021
appointed Pradeep Manohar Gaitonde as the Company Secretary and Compliance Officer of the
Company to take over from Rajendra Moholkar as Company Secretary and Compliance Officer,
with effect from November 1, 2021.
Pradeep Manohar Gaitonde is a member of the Institute of Company Secretaries of India
and the Institute of Chartered Accountants of India. He has degrees in Commerce and
General Law. He joined TCS in 2006 and has over thirty years of experience in finance,
governance and secretarial functions.
The Board places on record its appreciation for V Ramakrishnan and Rajendra Moholkar
for their invaluable contribution and guidance during their tenure as Chief Financial
Officer, and Company Secretary and Compliance Officer, respectively.
Pursuant to the provisions of Section 203 of the Act, Rajesh Gopinathan, Chief
Executive Officer and Managing Director,
N Ganapathy Subramaniam, Chief Operating Officer and Executive Director, Samir
Seksaria, Chief Financial Officer and Pradeep Manohar Gaitonde, Company Secretary are the
Key Managerial Personnel of the Company as on March 31, 2022.
10. Number of meetings of the Board
Five meetings of the Board were held during the year. For details of meetings of the
Board, please refer to the Corporate Governance Report, which is a part of this report.
11. Board evaluation
The Board of Directors has carried out an annual evaluation of its own performance,
board committees, and individual directors pursuant to the provisions of the Act and SEBI
Listing Regulations.
The performance of the board was evaluated by the Board after seeking inputs from all
the directors on the basis of criteria such as the board composition and structure,
effectiveness of board processes, information and functioning, etc.
The performance of the committees was evaluated by the Board after seeking inputs from
the committee members on the basis of criteria such as the composition of committees,
effectiveness of committee meetings, etc.
The above criteria are broadly based on the Guidance Note on Board Evaluation issued by
the Securities and Exchange Board of India on January 5, 2017. In a separate meeting of
independent directors, performance of non-independent directors, the Board as a whole and
Chairman of the Company was evaluated, taking into account the views of executive
directors and non-executive directors.
The Board and the Nomination and Remuneration Committee reviewed the performance of
individual directors on the basis of criteria such as the contribution of the individual
director to the board and committee meetings like preparedness on the issues to be
discussed, meaningful and constructive contribution and inputs in meetings, etc.
At the board meeting that followed the meeting of the independent directors and meeting
of Nomination and Remuneration Committee, the performance of the Board, its Committees,
and individual directors was also discussed. Performance evaluation of independent
directors was done by the entire Board, excluding the independent director being
evaluated.
12. Policy on directors appointment and remuneration and other details
The Companys policy on appointment of directors is available on the Companys website
at https://on.tcs.com/ApptDirectors.
The policy on remuneration and other matters provided in Section 178(3) of the Act has
been disclosed in the Corporate Governance Report, which is a part of this report and is
also available on the Companys website at https:/on.tcs.com/remuneration-policy.
13. Corporate social responsibility (CSR)
TCS CSR initiatives and activities are aligned to the requirements of Section 135 of
the Act.
The brief outline of the CSR policy of the Company and the initiatives undertaken by
the Company on CSR activities during the year are set out in Annexure I of this
report in the format prescribed in the Companies (Corporate Social Responsibility Policy)
Rules, 2014.
For other details regarding the CSR Committee, please refer to the Corporate Governance
Report, which is a part of this report. This Policy is available on the Companys website
at https^on.tcs.com/Global-CSR-Policy
14. Internal financial control systems and their adequacy
The details in respect of internal financial control and their adequacy are included in
the Management Discussion and Analysis, which is a part of this report.
15. Audit committee
The details pertaining to the composition of the Audit Committee are included in the
Corporate Governance Report, which is a part of this report.
16. Auditors
B S R & Co. LLP, Chartered Accountants (Firm Registration No.101248W/W-100022) the
statutory auditors of the Company, will hold office till the conclusion of the
twenty-seventh Annual General Meeting of the Company.
The Board has recommended the re-appointment of B S R & Co. LLP, Chartered
Accountants as the statutory auditors of the Company, for a second term of five
consecutive years, from the conclusion of the twenty-seventh Annual General Meeting
scheduled to be held in the year 2022 till the conclusion of the thirty-second Annual
General Meeting to be held in the year 2027, for approval of shareholders of the Company,
based on the recommendation of the Audit Committee.
17. Auditors report and Secretarial audit report
The statutory auditors report and the secretarial auditors report do not contain any
qualifications, reservations, or adverse remarks or disclaimer. Secretarial audit report
is attached to this report as Annexure II.
18. Risk management
The Board of Directors of the Company has formed a Risk Management Committee to frame,
implement and monitor the risk management plan for the Company.
The Committee is responsible for monitoring and reviewing the risk management plan and
ensuring its effectiveness. The Audit Committee has additional oversight in the area of
financial risks and controls. The major risks identified by the businesses and functions
are systematically addressed through mitigating actions on a continuing basis. The
development and implementation of risk management policy has been covered in the
Management Discussion and Analysis, which forms part of this report.
19. Vigil Mechanism
The Company has a Whistle Blower Policy and has established the necessary vigil
mechanism for directors and employees in conformation with Section 177(9) of the Act and
Regulation 22 of SEBI Listing Regulations, to report concerns about unethical behavior.
This Policy is available on the Companys website at httpson.tcs.com/WhistleBP.
20. Particulars of loans, guarantees and investments
The particulars of loans, guarantees and investments as per Section 186 of the Act by
the Company, have been disclosed in the financial statements.
21. Transactions with related parties
None of the transactions with related parties fall under the scope of Section 188(1) of
the Act. Accordingly, the disclosure of related party transactions as required under
Section 134(3)(h) of the Act in Form AOC-2 is not applicable to the Company for FY 2022
and hence does not form part of this report.
Pursuant to SEBI Listing Regulations, the resolution for seeking approval of the
shareholders on material related party transactions is being placed at the AGM.
22. Annual Return
Pursuant to Section 92(3) read with Section 134(3)(a) of the Act, the Annual Return as
on March 31, 2022 is available on the Companys website at https^on.tcs.com/annual-
return-21-22.
23. Particulars of employees
The information under Section 197 of the Act read with Rule 5 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014:
a. The ratio of the remuneration of each director to the median remuneration of the
employees of the Company and percentage increase in remuneration of each Director, Chief
Executive Officer, Chief Financial Officer and Company Secretary in the financial year:
Name |
Ratio to median remuneration |
% increase in remuneration in the financial year |
Non-executive Directors: |
|
|
N Chandrasekaran* |
- |
- |
O P Bhatt |
38.49 |
8.70 |
Aarthi Subramanian# |
- |
- |
Dr Pradeep Kumar Khosla |
34.64 |
21.62 |
Hanne Sorensen |
34.64 |
21.62 |
Keki Mistry |
38.49 |
25.00 |
Don Callahan |
34.64 |
12.50 |
Executive Directors: |
|
|
Rajesh Gopinathan |
396.67 |
26.52 |
N Ganapathy Subramaniam |
318.52 |
28.47 |
Chief Financial Officer |
|
|
Samir Seksaria## |
- |
$ |
V Ramakrishnan### |
- |
$ |
Company Secretary |
|
|
Pradeep Manohar Gaitonde@ |
- |
$ |
Rajendra Moholkar@@ |
- |
$ |
* As a policy, N Chandrasekaran, Chairman, has abstained from receiving commission from
the Company and hence not stated.
# In line with the internal guidelines of the Company, no payment is made towards
commission to the Non-Executive Directors of the Company, who are in full time employment
with any other Tata Company and hence not stated.
## Appointed as Chief Financial Officer w.e.f. May 1, 2021.
### Relinquished the office of Chief
Financial Officer w.e.f. April 30, 2021.
@ Appointed as Company Secretary and Compliance Officer w.e.f. November 1, 2021.
@@ Relinquished the office of Company Secretary and Compliance Officer w.e.f. October
31, 2021
$ Since the remuneration is only for part of the year, the percentage increase in
remuneration is not comparable and hence, not stated.
b. The percentage increase in the median remuneration of employees in the financial
year is 4.24 percent
c. The number of permanent employees on the rolls of Company are 5,92,195
d. The average annual increase was in the range of 5-8 percent in India. However,
during the course of the year, the total increase is approximately 10.5 percent, after
accounting for promotions and other event based compensation revisions. Employees outside
India received a wage increase varying from 1.5 to 6 percent.
The increase in remuneration is in line with the market trends in the respective
countries. In order to ensure that remuneration reflects the Companys performance, the
performance pay is also linked to organization performance and individual utilization in
addition to individual performance.
Increase in the managerial remuneration for the year was 27.38 percent.
e. The Company affirms that the remuneration is as per the remuneration policy of the
Company.
f. The statement containing names of top ten employees in terms of remuneration drawn
and the particulars of employees as required under Section 197(12) of the Act read with
Rule 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014, is provided in a separate annexure forming part of this report.
Further, the report and the accounts are being sent to the Members excluding the
aforesaid annexure. In terms of Section 136 of the Act, the said annexure is open for
inspection and any Member interested in obtaining a copy of the same may write to the
Company Secretary.
24. Integrated Report
The Company, has voluntarily provided Integrated Report, which encompasses both
financial and non-financial information to enable the Members to take well informed
decisions and have a better understanding of the Companys long term perspective. The
Report also touches upon aspects such as organisations strategy, governance framework,
performance and prospects of value creation based on the six forms of capital viz.
financial capital, manufactured capital, intellectual capital, human capital, social and
relationship capital and natural capital.
25. Disclosure requirements
As per SEBI Listing Regulations, the Corporate Governance Report with the Auditors
Certificate thereon, and the integrated Management Discussion and Analysis, the Business
Responsibility and Sustainability Report ("BRSR") form part of the Directors
Report.
The Company has provided BRSR, in lieu of the Business Responsibility Report which
indicates the Companys performance against the principles of the National
Guidelines on Responsible Business Conduct. This would enable the Members to have an
insight into environmental, social and governance initiatives of the Company.
The Company has devised proper systems to ensure compliance with the provisions of all
applicable Secretarial Standards issued by the Institute of Company Secretaries of India
and that such systems are adequate and operating effectively.
26. Deposits from public
The Company has not accepted any deposits from public and as such, no amount on account
of principal or interest on deposits from public was outstanding as on the date of the
balance sheet.
27. Conservation of energy, technology absorption, foreign exchange earnings and outgo
Conservation of energy
The Company is committed towards conservation of energy and climate action which is
reaffirmed in its Environmental Sustainability Policy (https://on.tcs.com/Environmental-
Sustainability).
Through the reporting year, initiatives were aligned towards achieving these targets.
Having already switched over to LED lights across all offices in 2020, this year the focus
was on cooling system and UPS efficiencies. Offices with old/inefficient air conditioners
were upgraded to energy efficient and energy star rated cooling systems. Initiatives to
optimize the UPS load included UPS resizing and switch over to modular UPS. The data
center PUE of 1.65 was achieved for the corporate data centers at Yantra Park and
Siruseri. The Company is also incorporating next generation green data center practices
with futuristic and modular technologies like modular UPS, cold aisle containment, real
time monitoring of temperature and energy consumption.
The Company continued to augment the roof top solar photo voltaic installations this
year as well taking the total installed capacity to 10.2 MWp contributing to 3.76 percent
of total electricity use in the reporting year. The Company increased the renewable energy
procurement through third party power purchase agreement (PPA) for solar energy at TCS
Siruseri campus and switch over to green tariff for its operations in the states of
Karnataka and Maharashtra. This resulted in an increase in the renewable energy use to
37.2 percent of total electricity use.
The Company has become carbon neutral across Scope 1 and Scope 2 for its operations in
Asia Pacific (APAC), Europe and North America (NA) for this reporting year. These efforts
helped achieve a year-on-year reduction in absolute carbon footprint reduction (across
Scope 1 and Scope 2) across TCS global operations by 25 percent. The electricity use
across India operations reduced by 6.54 percent y-o-y. For global operations, there is an
increase in total electricity use (y-o-y) by approx.
2.7 percent due to increased reporting boundary to include operations in NA, APAC,
Europe and Middle East and Africa (MEA) regions.
Continued focus on the above initiatives will enable steer the Company towards
achieving its carbon target to reduce its absolute Scope 1 + Scope 2 carbon footprint by
70 percent by 2025 over the baseline on 2016 and also to become net zero by 2030.
Technology absorption, adaption and innovation
Research & Development (R&D): Specific areas in which R&D was carried out
by the Company
FY 2022 marked the beginning of TCS fifth decade as a research-focused organization.
Activities that strengthened both brands related to R&D are specified here. TCS
Research as a brand, highlights the Companys ability to invent with impact, and explore
futuristic ideas with the wider academic ecosystem. The TCS Pace brand stands for
its innovation capability, by which intellectual content is made tangible and experiential
to customers.
TCS continues to expand its foundational research in computing and its intersection
with the sciences. New areas of research include sensing, digital twins for social
systems, efficient and robust AI and deep learning, quantum computing and generative
design for materials, manufacturing and life sciences. Work began with cross-functional
teams on strategic initiatives such as Future of Software Development and Sustainability.
Research on other strategic initiatives continued.
More of TCS IP based products and platforms were made available natively on
hyperscaler cloud platforms. While TCS BaNCS suite in financial services, TCS
Optumera and TCS Omnistore in retail, TCS HOBS in telecom and TCS
ADD in life sciences were made available on AWS last year, TCS Aviana for
travel customers followed suit this year. TCS Cognitive Plant Operations Adviser (CPOA),
an amalgamation of IP-based solutions for manufacturing has also been developed using
Microsoft Azure Cloud capabilities.
TCS MasterCraft is now on the Microsoft Azure Marketplace. TCS Clever
Energy, TCS Envirozone were launched on Microsofts Azure IoT platform to help
organizations gain insights into energy usage and reduce waste and emissions. Many of
these products and platforms are available on Google Cloud as well. TCS also has a rich
suite of cloud accelerators rendered on the Google Cloud Garages launched at TCS Pace
Ports.
The best of TCS innovation assets, capabilities, and practices were brought to
customers through experiential initiatives. The Companys Pace Ports, spaces that connect
customers to all of TCS organizational capabilities in innovation, technology and
industry expertise, hosted several events and workshops. TCS Pace Ports are active across
geographies. The Company launched a Pace Port in Amsterdam formally this year to
bring TCS ecosystem of partners from academia, government institutions, start-ups and
technology providers to co-innovate with European customers with a focus on
sustainability.
Powered by Pace centres were launched across the globe to help customers
leverage co-innovation and accelerate digital transformation. These include the digital
innovation lab at the Letterkenny Global Delivery Centre, Northern Ireland; Digital Garage
Innovation Centre at Sydney; and the All-women Innovation Lab at Riyadh. TCS Agile
Innovation Cloud (AIC) was adopted by multiple customers this year.
TCS Co-Innovation Network (TCS COIN) expanded its global footprint with more than
55 active academic partnerships and over 2,600 start-up partners in the network.
In keeping with the Companys commitment to social responsibility and sustainability,
TCS Research its continued focus on energy, circularity, and development related
projects. Several other initiatives were undertaken:
TCS and Glasgow University launched UK Sustainathon 2021 to empower UK university
students to tackle sustainability challenges using digital technologies, the winners of
which showcased their idea at the TCS Innovation Forum 2021 in UK. The second edition of
TCS Sustainathon ASEAN 2021 expanded beyond Singapore to Malaysia and Philippines. It
focused on Reimagining Education. Sustainathon - The Balancing Act, a Europe-wide
sustainathon in alignment with Conference of Parties 26 (COP 26) and the European Green
Deal was also launched in FY 2022.
In line with the Companys belief of building greater futures through innovation and
collective knowledge, R&I continued to combine know-how and innovation mindset across
the organization by regularly organizing crowdsourcing initiatives. TCS Innovista 2022,
attracted 11,970 entries across the organization. TCS secured 4 wins at TATA Innovista
2021. Innovation Champions continued to be active across several accounts facilitating TCS
customers growth and transformation journeys. TCS Innovation Forum 2021 with
sustainability as a theme was held in seven geographies; many Innovation Days were held
with customers across industries.
The ninth season of TCS CodeVita, won the Guinness World Records title for the
worlds largest computer programming competition with 1,36,054 participants from 34
countries.
Intellectual property of TCS R&I grew with more than 240 publications presented in
top-tier conferences or published in journals. The Company continued to contribute to
standards bodies especially in ISO SC7 and SC42 on Software and Systems Engineering and
Artificial Intelligence, respectively. As of March 31, 2022, 6,583 patents have been filed
and 2,287 granted cumulatively by the Company. TCS won CIIs Industrial Intellectual
Property Awards 2021 for the Best Patents Portfolio in the Large Enterprises (Information
and Communications Technology and Services) category, for the fifth consecutive year. TCS
also won the ASSOCHAM IP Excellence Award 2021 for the best IP In-House Team of the Year.
Future course of action:
TCS will continue to scale the Patents, Products and Platforms strategy across the
organization, harnessing the collective knowledge and creativity of internal teams and of
partners to deliver innovative solutions in support of the Companys pursuit of growth and
transformation opportunities and longer-term sustainability goals.
Expenditure on R&D:
TCS research and innovation centres are located in India and other parts of the world.
These research centres in India, as certified by Department of Scientific & Industrial
Research (DSIR), function from Pune, Chennai, Bengaluru, Delhi- NCR, Hyderabad, Kolkata
and Mumbai.
Expenditure incurred in the R&D centers and innovation centers of TCS during FY
2022 and FY 2021 are given below:
(Rs.in crore)
Expenditure on R&D and innovation |
Standalone |
|
Consolidated |
|
|
FY 2022 |
FY 2021 |
FY 2022 |
FY 2021 |
a. Capital |
_* |
1 |
_* |
1 |
b. Recurring |
337 |
298 |
341 |
302 |
c. Total R&D expenditure (a+b) |
337 |
299 |
341 |
303 |
d. Innovation center expenditure |
1,841 |
1,546 |
1,901 |
1,614 |
e. Total R&D and innovation expenditure (c+d) |
2,178 |
1,845 |
2,242 |
1,917 |
f. R&D and innovation expenditure as a percentage of total turnover |
1.4% |
1.4% |
1.2% |
1.2% |
*Represents value less than 0.50 crore.
Foreign exchange earnings and outgo
Export revenue constituted 94.0 percent of the total standalone revenue in FY 2022
(94.0 percent in FY 2021).
(Rs.in crore)
Foreign exchange earnings and outgo |
FY 2022 |
FY 2021 |
a. Foreign exchange earnings |
1,55,240 |
1,30,720 |
b. CIF Value of imports |
216 |
241 |
c. Expenditure in foreign currency |
63,689 |
54,800 |
28. Acknowledgements
The Directors thank the Companys employees, customers, vendors, investors and academic
partners for their continuous support. The Directors also thank the Government of India,
Governments of various states in India, Governments of various countries and concerned
Government departments and agencies for their co-operation.
The Directors regret the loss of lives due to COVID-19 pandemic and are deeply grateful
and have immense respect for every person who risked his life and safety to fight this
pandemic.
The Directors appreciate and value the contribution made by every member of the TCS
family.