Consolidated Balance Sheet

(` crore)
As at As at
Note
March 31, 2023 March 31, 2022
ASSETS
Non-current assets
Property, plant and equipment 10(a) 10,230 10,774
Capital work-in-progress 10(a) 1,234 1,205
Right-of-use assets 9 7,560 7,636
Goodwill 10(b) 1,858 1,787
Other intangible assets 10(c) 867 1,101
Financial assets
Investments 8(a) 266 223
Trade receivables
Billed 8(b) 149 145
Unbilled 199 55
Loans 8(e) 173 311
Other financial assets 8(f) 2,149 2,253
Income tax assets (net) 2,583 1,983
Deferred tax assets (net) 17 3,307 3,708
Other assets 10(d) 2,806 2,023
Total non-current assets 33,381 33,204
Current assets
Inventories 10(e) 28 20
Financial assets
Investments 8(a) 36,897 30,262
Trade receivables
Billed 8(b) 41,049 34,074
Unbilled 8,905 7,736
Cash and cash equivalents 8(c) 7,123 12,488
Other balances with banks 8(d) 3,909 5,733
Loans 8(e) 1,325 6,445
Other financial assets 8(f) 1,319 1,390
Income tax assets (net) 8 11
Other assets 10(d) 9,707 10,151
Total current assets 1,10,270 1,08,310
TOTAL ASSETS 1,43,651 1,41,514
EQUITY AND LIABILITIES
Equity
Share capital 8(k) 366 366
Other equity 90,058 88,773
Equity attributable to shareholders of the Company 90,424 89,139
Non-controlling interests 782 707
Total equity 91,206 89,846
Liabilities
Non-current liabilities
Financial liabilities
Lease liabilities 6,203 6,368
Other financial liabilities 8(g) 353 572
Employee benefit obligations 13 536 677
Deferred tax liabilities (net) 17 792 590
Unearned and deferred revenue 1,003 1,110
Total non-current liabilities 8,887 9,317
Current liabilities
Financial liabilities
Lease liabilities 1,485 1,450
Trade payables 10,515 8,045
Other financial liabilities 8(g) 9,068 7,687
Unearned and deferred revenue 3,843 3,635
Other liabilities 10(f) 4,892 8,392
Provisions 10(g) 345 1,411
Employee benefit obligations 13 4,065 3,810
Income tax liabilities (net) 9,345 7,921
Total current liabilities 43,558 42,351
TOTAL EQUITY AND LIABILITIES 1,43,651 1,41,514

NOTES FORMING PART OF Consolidated FINANCIAL STATEMENTS

As per our report of even date attached For and on behalf of the Board
For B S R & Co. LLP Rajesh Gopinathan N Ganapathy Subramaniam
Chartered Accountants CEO and Managing Director COO and Executive Director
Firm’s registration no: 101248W/W-100022
Amit Somani Samir Seksaria Pradeep Manohar Gaitonde
Partner CFO Company Secretary
Membership No: 060154
Mumbai, April 12, 2023 Mumbai, April 12, 2023
Integrated Annual Report 2022-23 Consolidated Financial Statements 2022-23 | 190
Consolidated Statement of Profit and Loss
(` crore)
Year ended Year ended
Note
March 31, 2023 March 31, 2022
Revenue from operations 12 2,25,458 1,91,754
Other income 13 3,449 4,018
TOTAL INCOME 2,28,907 1,95,772
Expenses
Employee benefit expenses 14 127,522 107,554
Cost of equipment and software licences 15(a) 1,881 1,163
Finance costs 16 779 784
Depreciation and amortisation expense 5,022 4,604
Other expenses 15(b) 36,796 29,980
TOTAL EXPENSES 1,72,000 1,44,085
PROFIT BEFORE TAX 56,907 51,687
Tax expense
Current tax 17 14,757 13,654
Deferred tax 17 (153) (416)
TOTAL TAX EXPENSE 14,604 13,238
PROFIT FOR THE YEAR 42,303 38,449
OTHER COMPREHENSIVE INCOME (OCI)
Items that will not be reclassified subsequently to profit or loss
Remeasurement of defined employee benefit plans 350 261
Net change in fair values of investments in equity shares carried at fair value (2) (4)
through OCI
Income tax on items that will not be reclassified subsequently to profit or loss (75) 19
Items that will be reclassified subsequently to profit or loss
Net change in fair values of investments other than equity shares carried at fair (679) (516)
value through OCI
Net change in intrinsic value of derivatives designated as cash flow hedges (25) (37)
Net change in time value of derivatives designated as cash flow hedges 32 (34)
Exchange differences on translation of financial statements of foreign operations 655 20
Income tax on items that will be reclassified subsequently to profit or loss 236 196
TOTAL OTHER COMPREHENSIVE INCOME / (LOSSES) 492 (95)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 42,795 38,354
Profit for the year attributable to:
Shareholders of the Company 42,147 38,327
Non-controlling interests 156 122
42,303 38,449
Other comprehensive income for the year attributable to:
Shareholders of the Company 493 (63)
Non-controlling interests (1) (32)
492 (95)
Total comprehensive income for the year attributable to:
Shareholders of the Company 42,640 38,264
Non-controlling interests 155 90
42,795 38,354
Earnings per equity share:- Basic and diluted (`) 18 115.19 103.62
Weighted average number of equity shares 365,90,51,373 369,88,32,195
NOTES FORMING PART OF Consolidated FINANCIAL STATEMENTS

As per our report of even date attached For and on behalf of the Board
For B S R & Co. LLP Rajesh Gopinathan N Ganapathy Subramaniam
Chartered Accountants CEO and Managing Director COO and Executive Director
Firm’s registration no: 101248W/W-100022
Amit Somani Samir Seksaria Pradeep Manohar Gaitonde
Partner CFO Company Secretary
Membership No: 060154
Mumbai, April 12, 2023 Mumbai, April 12, 2023
Integrated Annual Report 2022-23 Consolidated Financial Statements 2022-23 | 191
 Consolidated Statement of Changes in Equity
A. EQUITY SHARE CAPITAL (` crore)
Balance as at Changes in equity share capital Restated balance as at Changes in equity share capital Balance as at
April 1, 2022 due to prior period errors April 1, 2022 during the year March 31, 2023
366 - 366 - 366
(` crore)
Balance as at Changes in equity share capital Restated balance as at Changes in equity share capital Balance as at
April 1, 2021 due to prior period errors April 1, 2021 during the year* March 31, 2022

Integrated Annual Report 2022-23

370 - 370 (4) 366
*Refer Note 8(m).
B. OTHER EQUITY (` crore)
Reserves and surplus Items of other comprehensive income Equity Non- Total
attributable to controlling equity
Capital Capital General Special Retained Statutory Investment Cash flow hedging reserve Foreign shareholders interests
reserve redemption reserve Economic Zone earnings reserve revaluation currency of the
reserve re-investment reserve Intrinsic Time translation
value value Company
reserve reserve
Balance as at April 1, 2022 75 440 - 7,287 78,158 162 488 27 (53) 2,189 88,773 707 89,480
Profit for the year - - - - 42,147 - - - - - 42,147 156 42,303
Other comprehensive income / (losses) - - - - 275 - (447) (19) 25 659 493 (1) 492
Total comprehensive income - - - - 42,422 - (447) (19) 25 659 42,640 155 42,795
Dividend - - - - (41,347) - - - - - (41,347) (63) (41,410)
Purchase of non-controlling interests - - - - (8) - - - - - (8) (17) (25)
Transfer to Special Economic Zone - - - 8,380 (8,380) - - - - - - - -
re-investment reserve
Transfer from Special Economic Zone - - - (3,858) 3,858 - - - - - - - -
re-investment reserve
Transfer to reserves - - - - 19 (19) - - - - - - -
Balance as at March 31, 2023 75 440 - 11,809 74,722 143 41 8 (28) 2,848 90,058 782 90,840
Balance as at April 1, 2021 75 436 27 2,538 79,586 407 828 56 (27) 2,137 86,063 675 86,738
Profit for the year - - - - 38,327 - - - - - 38,327 122 38,449
Other comprehensive income / (losses) - - - - 280 - (340) (29) (26) 52 (63) (32) (95)
Total comprehensive income - - - - 38,607 - (340) (29) (26) 52 38,264 90 38,354
Dividend - - - - (13,317) - - - - - (13,317) (58) (13,375)
Expenses for buy-back of equity shares - - - - (49) - - - - - (49) - (49)
Tax on liability towards buy-back of - - - - (4,192) - - - - - (4,192) - (4,192)
equity shares
Buy-back of equity shares - 4 - - (18,000) - - - - - (17,996) - (17,996)
Transfer to Special Economic Zone - - - 9,407 (9,407) - - - - - - - -
re-investment reserve
Transfer from Special Economic Zone - - - (4,658) 4,658 - - - - - - - -
re-investment reserve
Transfer to reserves - - (27) - 272 (245) - - - - - - -
Balance as at March 31, 2022 75 440 - 7,287 78,158 162 488 27 (53) 2,189 88,773 707 89,480
Gain of `275 crore and `280 crore on remeasurement of defined employee benefit plans (net of tax) is recognised as a part of retained earnings for the years ended March 31, 2023 and 2022,
respectively.
Total equity (primarily retained earnings) includes `1,601 crore and `1,759 crore as at March 31, 2023 and 2022, respectively, pertaining to trusts and TCS Foundation held for specified purposes.

Consolidated Financial Statements 2022-23 | 192

Nature and purpose of reserves (e) Retained earnings
(a) Capital reserve This reserve represents undistributed accumulated
The Group recognises profit and loss on purchase, sale, earnings of the Group as on the balance sheet date.
issue or cancellation of the Group’s own equity instruments
to capital reserve. (f) Statutory reserve
Statutory reserves are created to adhere to requirements
(b) Capital redemption reserve of applicable laws and will be utilised in accordance with
As per Companies Act, 2013, capital redemption reserve the said laws.
is created when company purchases its own shares out of
free reserves or securities premium. A sum equal to the (g) Investment revaluation reserve
nominal value of the shares so purchased is transferred This reserve represents the cumulative gains and losses
to capital redemption reserve. The reserve is utilised arising on the revaluation of equity and debt instruments
in accordance with the provisions of section 69 of the on the balance sheet date measured at fair value through
Companies Act, 2013. other comprehensive income. The reserves accumulated
will be reclassified to retained earnings and profit and loss
(c) General reserve respectively, when such instruments are disposed.
The general reserve is a free reserve which is used from
time to time to transfer profits from / to retained earnings (h) Cash flow hedging reserve
for appropriation purposes. As the general reserve is The cash flow hedging reserve represents the cumulative
created by a transfer from one component of equity effective portion of gains or losses arising on changes in
to another and is not an item of other comprehensive fair value of designated portion of hedging instruments
income, items included in the general reserve will not be entered into for cash flow hedges. Such gains or losses will
reclassified subsequently to statement of profit and loss. be reclassified to statement of profit and loss in the period
in which the underlying hedged transaction occurs.
(d) Special Economic Zone re-investment reserve
The Special Economic Zone (SEZ) re-investment reserve (i) Foreign currency translation reserve
is created out of the profit of eligible SEZ units in terms The exchange differences arising from the translation of
of the provisions of section 10AA(1)(ii) of the Income-tax financial statements of foreign operations with functional
Act, 1961. The reserve will be utilised by the Group for currency other than Indian Rupee is recognised in other
acquiring new assets for the purpose of its business as per comprehensive income and is presented within equity in
the terms of section 10AA(2) of Income-tax Act, 1961. the foreign currency translation reserve.

NOTES FORMING PART OF Consolidated FINANCIAL STATEMENTS

As per our report of even date attached For and on behalf of the Board
For B S R & Co. LLP Rajesh Gopinathan N Ganapathy Subramaniam
Chartered Accountants CEO and Managing Director COO and Executive Director
Firm’s registration no: 101248W/W-100022
Amit Somani Samir Seksaria Pradeep Manohar Gaitonde
Partner CFO Company Secretary
Membership No: 060154
Mumbai, April 12, 2023 Mumbai, April 12, 2023

Integrated Annual Report 2022-23 Consolidated Financial Statements 2022-23 | 193

Consolidated Statement of Cash Flows
(` crore)
Year ended Year ended
March 31, 2023 March 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the year 42,303 38,449
Adjustments for:
Depreciation and amortisation expense 5,022 4,604
Bad debts and advances written off, allowance for doubtful trade receivables and 140 135
advances (net)
Tax expense 14,604 13,238
Net (gain) / loss on lease modification 2 (7)
Net loss on sub-lease - 9
Unrealised foreign exchange gain (189) (120)
Net gain on disposal of property, plant and equipment (26) (23)
Net gain on disposal / fair valuation of investments (224) (198)
Interest income (3,248) (2,663)
Dividend income (15) (4)
Finance costs 779 784
Operating profit before working capital changes 59,148 54,204
Net change in
Inventories (8) (12)
Trade receivables
Billed (6,501) (4,210)
Unbilled (1,182) (934)
Loans and other financial assets 261 (116)
Other assets (25) 807
Trade payables 2,036 186
Unearned and deferred revenue 39 (103)
Other financial liabilities 1,417 1,153
Other liabilities and provisions (254) 460
Cash generated from operations 54,931 51,435
Taxes paid (net of refunds) (12,966) (11,486)
Net cash generated from operating activities 41,965 39,949

CASH FLOWS FROM INVESTING ACTIVITIES

Bank deposits placed (4,548) (15,947)
Inter-corporate deposits placed (8,293) (14,619)
Purchase of investments# (1,29,745) (75,374)
Payment for purchase of property, plant and equipment (2,532) (2,483)
Payment including advances for acquiring right-of-use assets (213) (15)
Payment for purchase of intangible assets (355) (497)
Proceeds from bank deposits 6,252 11,950
Proceeds from inter-corporate deposits 13,654 19,498
Proceeds from disposal / redemption of investments #
1,22,687 73,852
Proceeds from sub-lease receivable 2 3

Integrated Annual Report 2022-23 Consolidated Financial Statements 2022-23 | 194

Consolidated Statement of Cash Flows
(` crore)
Year ended Year ended
March 31, 2023 March 31, 2022
Proceeds from disposal of property, plant and equipment 37 31
Interest received 3,080 2,700
Dividend received 13 4
Net cash generated from / (used in) investing activities 39 (897)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of lease liabilities (1,515) (1,417)
Interest paid (779) (698)
Dividend paid (41,347) (13,317)
Dividend paid to non-controlling interests (63) (58)
Transfer of funds to buy-back escrow account - (180)
Transfer of funds from buy-back escrow account 18 162
Expenses for buy-back of equity shares - (49)
Tax on buy-back of equity shares (4,192) -
Buy-back of equity shares - (18,000)
Advance towards purchase of non-controlling interests - (24)
Net cash used in financing activities (47,878) (33,581)
Net change in cash and cash equivalents (5,874) 5,471
Cash and cash equivalents at the beginning of the year 12,488 6,858
Exchange difference on translation of foreign currency cash and cash equivalents 509 159
Cash and cash equivalents at the end of the year 7,123 12,488
Components of cash and cash equivalents
Balances with banks
In current accounts 2,114 2,211
In deposit accounts 4,999 10,277
Cheques on hand -* -*
Cash on hand -* -*
Remittances in transit 10 -*
7,123 12,488

*Represents values less than `0.50 crore.

#
Purchase of investments include `165 crore and `17 crore for the years ended March 31, 2023 and 2022, respectively, and proceeds
from disposal / redemption of investments include `161 crore and `87 crore for the years ended March 31, 2023 and 2022,
respectively, held by trusts and TCS Foundation held for specified purposes.

NOTES FORMING PART OF Consolidated FINANCIAL STATEMENTS

As per our report of even date attached For and on behalf of the Board
For B S R & Co. LLP Rajesh Gopinathan N Ganapathy Subramaniam
Chartered Accountants CEO and Managing Director COO and Executive Director
Firm’s registration no: 101248W/W-100022
Amit Somani Samir Seksaria Pradeep Manohar Gaitonde
Partner CFO Company Secretary
Membership No: 060154
Mumbai, April 12, 2023 Mumbai, April 12, 2023

Integrated Annual Report 2022-23 Consolidated Financial Statements 2022-23 | 195