A

PROJECT REPORT
ON
“Enterprise Analysis & Desk Research ‘Tata Consultancy Services Ltd’
In Partial Fulfillment of the Subject
EADR (115)

Submitted By
Devesh Pawar (A:45.)

Guided By
Mr. Vijay Sonaje

Submitted To

MarathwadaMitraMandal’s Institute of Management Education and Research

Training (IMERT)
(2018-19)

DECLARATION
1
I, the undersigned, hereby declare that the Project Report entitled “EnterpriseAnalysis&
Desk Research: Tata Consultancy Services Ltd.,” inpartial fulfillment of the subject
EADR (115) under the guidance of Prof. Vijay Sonaje is my original work and the
conclusion drawn there in are based on the material collected by myself.

Place: Pune
Date: 24/10/2018 Devesh Pawar
Div: A
Roll no: 45.

2
 Executive Summary
This financial project we have prepared to know the practical implication of
accounting and how it is applied in real life situation .For this financial project we
have taken 3 year’s Balance Sheet and 3 year’s Profit and loss A/c of for the analysis
.In this project we have prepared following things :

1. Introduction about company :

In this portion we have explain about company history , product profile and basic
details like registered office address, board of directors , bankers ,auditors etc.

2. Common size statement :

Common size income statement is an income statement in which each account is

expressed as a percentage of the values of sales .This type of financial statement can
be used to allow for easy analysis between companies or between time periods of a
company.

3. Trend Analysis :

A trend analysis is a method of analysis that allows traders to predict what will
happen with a stick in a future. Trend analysis is based on historical data about the
stock’s performance given the overall trends of the market and particular indicators
within the market.

4. Ratio Analysis :

A ratio analysis is a quantitative analysis of information contained in a company’s

financial statements. Ratio analysis is used to evaluate various aspects of a
company’s operating and financial performance such as its efficiency, liquidity
,profitability and solvency.

3
INDEX

SR. NO. CONTENT PAGE NO.

1 Introduction 8

2 Industry Profile 10-12

3 Company Profile 14-18

4 Review of Literature 21-23

5 Objectives 25

6 Research Methodology 27-28

7 Data Analysis and 30-42

Interpretation
8 Observations and 43
findings
9 Suggestions 45

10 Coclusion 47

11 Bibliography 49

4
 LIST OF GRAPHS
Figure Graph name Page no.

Fig. 7.1 Current Ratio 33

Liquid Ratio 33

Fig. 7.2

Fig. 7.3 Fixed Assets to Capital Employed 34

Ratio
Fig. 7.4 Net Profit Ratio 35

Fig. 7.5 Gross Profit Ratio 36

Fig. 7.6 Return on Total Assets Ratio 37

Fig. 7.7 Return on Equity Ratio 37

Fig. 7.8 Return on Capital Employed Ratio 38

(ROI)
Fig. 7.9 Earnings Per Share (EPS) 38

Fig. 7.10 P/E Ratio(Price to Earnings Ratio) 39

Fig. 7.11 Book Value 39

Fig. 7.12 Market Value to Book Value 40

Fig. 7.13 Fixed Assets Turnover Ratio 40

Fig. 7.14 Sales to Working Capital 41

5
 LIST OF TABLES

SR. NO. TABLE NO. TITLE OF THE PAGE NO.

TABLE
1 7.1 Geographical 30
spread

6
 CHAPTER-1

INTRODUCTION

7
Introduction:

TCS was my dream IT company and I wanted to do project on it. I know a lot about IT
services. I am also interested in IT company analysis. I always wanted to know How the
IT service based company works? How they do their Business? What are their markets?
Exactly on which kind of parameter they are dealing with? Who are their consumers?
Who are their competitors? How do the government policies regulate them

8
 CHAPTER-2

INDUSTRY PROFILE

9
2.1 Introduction:
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 &ITeS companies have set up over 1,000 global
delivery centres in about 80 countries across the world.
More importantly, the industry has led the economic transformation of the country and
altered the perception of India in the global economy. India's cost competitiveness in
providing IT services, cost savings of 60–70 per cent over source countries, continues to
be the mainstay of its Unique Selling Proposition (USP) in the global sourcing market.
However, India is also gaining prominence in terms of intellectual capital with several
global IT firms setting up their innovation centres in India.
India has become the digital capabilities hub of the world with around 75 per cent of
global digital talent present in the country.

2.2 Market Size:

India’s IT &ITeS industry grew to US$ 167 billion in 2017-18. Exports from the industry
increased to US$ 126 billion in FY18 while domestic revenues (including hardware)
advanced to US$ 41 billion.
Spending on Information Technology in India is expected to grow over 9 per cent to
reach US$ 87.1 billion in 2018.*
India’s Personal Computer (PC) shipment advanced 11.4 per cent year-on-year to 9.56
million units in 2017 on the back of rise in the quantum of large projects.
Revenue from digital segment is expected to comprise 38 per cent of the forecasted US$
350 billion industry revenue by 2025.

10
2.3 Investments/ Developments:
Indian IT's core competencies and strengths have attracted significant investments from
major countries. The computer software and hardware sector in India attracted
cumulative Foreign Direct Investment (FDI) inflows worth US$ 32.23 billion between
April 2000 to June 2018, according to data released by the Department of Industrial
Policy and Promotion (DIPP).
Leading Indian IT firms like Infosys, Wipro, TCS and Tech Mahindra, are diversifying
their offerings and showcasing leading ideas in blockchain, artificial intelligence to
clients using innovation hubs, research and development centres, in order to create
differentiated offerings.
Some of the major developments in the Indian IT and ITeS sector are as follows:

 Nasscom has launched an online platform which is aimed at up-skilling over 2

million technology professionals and skilling another 2 million potential
employees and students.
 Revenue growth in the BFSI vertical stood at 10.3 per cent y-o-y in the first
quarter of 2018-19.
 As of March 2018, there were over 1,140 GICs operating out of India.
 Private Equity (PE)/Venture Capital (VC) investments in India's IT &ITeS sector
reached US$ 7.6 billion during April-December 2017.

2.4 Government Initiatives:

Some of the major initiatives taken by the government to promote IT and ITeS sector in
India are as follows:

 The government has identified Information Technology as one of 12 champion

service sectors for which an action plan is being developed. Also, the government
has set up aRs 5,000 crore (US$ 745.82 million) fund for realising the potential of
these champion service sectors.
 As a part of Union Budget 2018-19, NITI Aayog is going to set up a national
level programme that will enable efforts in AI* and will help in leveraging AI*
technology for development works in the country.

11
2.5 Road Ahead:
India is the topmost offshoring destination for IT companies across the world. Having
proven its capabilities in delivering both on-shore and off-shore services to global clients,
emerging technologies now offer an entire new gamut of opportunities for top IT firms in
India. Export revenue of the industry is expected to grow 7-9 per cent year-on-year to
US$ 135-137 billion in FY19. The industry is expected to grow to US$ 350 billion by
2025 and BPM is expected to account for US$ 50-55 billion out of the total revenue.

12
 CHAPTER-3

COMPANYPROFILE

13
3.1 History:

TCS Limited was founded in 1968 by division of Tata Sons Limited. Its early contracts
included punched card services to sister company TISCO (now Tata Steel), working on
an Inter-Branch Reconciliation System for the Central Bank of India, and providing
bureau services to Unit Trust of India.

In 1975, TCS delivered an electronic depository and trading system called SECOM for
the Swiss company SIS SegaInterSettle (deutsch); it also developed System X for the
Canadian Depository System and automated the Johannesburg Stock Exchange. It
associated with a Swiss partner, TKS Teknosoft, which it later acquired.

In 1980, TCS has established India's first dedicated software research and development
centre, the Tata Research Development and Design Centre (TRDDC) in Pune.

In 1981, it established India's first client-dedicated offshore development centre, set up

for clients Tandem. TCS later (1993) partnered with Canada-based software factory
Integrity Software Corp, which TCS later acquired.

In anticipation of the Y2K bug and the launch of a unified European currency (Euro),
Tata Consultancy Services created the factory model for Y2K conversion and
developed software tools which automated the conversion process and enabled third-
party developer and client implementation.

Towards of end of 1999, TCS decided to offer Decision Support System (DSS) in the
domestic market under its Corporate Vice President and Transformation Head
SubbuIyer.

On 25 August 2004, TCS became a Publicly Listed Company.

In 2005, TCS became the first India-based IT services company to enter

the bioinformatics market. In 2006, it designed an ERP system for the Indian Railway
Catering and Tourism Corporation. By 2008, its e-business activities were generating
over US$500 million in annual revenues.

TCS entered the small and medium enterprises market for the first time in 2011,
with cloud-based offerings. On the last trading day of 2011, it overtook RIL to achieve
the highest market capitalisation of any India-based company. In the 2011/12 fiscal year,
TCS achieved annual revenues of over US$10 billion for the first time.
14
In May 2013, TCS was awarded a six-year contract worth over ₹ 1100 crores to provide
services to the Indian Department of Posts.

In 2013, the firm moved from the 13th position to 10th position in the League of top 10
global IT services companiesand in July 2014, it became the first Indian company with
over Rs 5 lakh crore market capitalization.

In Jan 2015, TCS ends RIL's 23-year run as most profitable firm.

In Jan 2017, the company announced a partnership with Aurus, Inc., a payments
technology company, to deliver payment solutions for retailers using TCS OmniStore, a
first of its kind unified store commerce platform.

In the same year, TCS China was associated as a joint venture with the Chinese
government.

3.3 Management Team:

Rajesh Gopinathan - Chief Executive Officer & Managing Directo

Ravi Viswanathan - Chief Marketing Officer

Ramakrishnan V - Chief Financial Officer

VishwanathanIyer - Global Head Legal & Corporate Affairs

Surya Kant - Business HeadNorth America, UK & Europe

N G Subramaniam - Chief Operating Officer & Executive Director

K Ananth Krishnan - Chief Technology Officer

Ajoyendra Mukherjee - Global Head Human Resources

RajendraMoholkar - Company Secretary

K Krithivasan - Business Head Banking, Financial Services and Insurance

MilindLakkad - Business HeadManufacturing

Suresh Muthuswami - Business HeadBFSI Platforms

Pratik Pal - Business HeadRetail, Travel & Consumer Products

DebashisGhosh - Business HeadLife Sciences, Healthcare and Public Services

15
Krishnan Ramanujam - Business HeadBusiness and Technology Services

3.2 Milestones:

2018

Tata Steel and Thyssenkrupp sign definitive joint venture agreements to create new
steel champion in Europe

Bombay House reopens after restoration

Tata Steel Archives completes 25 glorious years

Vistara celebrates its 10 millionth customer

Land Rover celebrates 70 years: from stop gap to world's favourite 4x4

Tata Consultancy Services becomes the first listed Indian IT company to reach the $100
billion market capitalisation mark

Tata Chemicals launches Medikarb - India's first branded pharmaceutical grade sodium
bicarbonate

The Tata group turns 150

2017

GE and Tata group enter into strategic partnership to manufacture LEAP engine
components in India

Tata group to be title sponsor of the Maharashtra Open

TCS and Cornell Tech inaugurate the Tata Innovation Center to promote joint academic
and industry research

Fairfax and Tata Consultancy Services partner on three major running events in
Australia

JLR, Ford and TMETC partner for UK's largest connected and autonomous vehicle

16
 project in Coventry

TCS announces Internet of Things digital transformation partnership with Rolls-Royce

Tata Elxsi partners with BlackBerry to accelerate innovation in secure embedded

designs

Tata Global Beverages pilots its first tea cafe in Bengaluru

Tata Steel and Thyssenkrupp sign MOU to create a leading European steel enterprise

The Tata group to be title sponsor of Asia’s most prestigious marathon for 10 years

Tata Steel's first greenfield ferro-chrome plant in India at Gopalpur starts production

Hot metal production at blast furnace of Tata Steel Kalinganagar plant crosses 2 million
tonne

Tata group partners with Water Abundance XPRIZE

N Chandrasekaran appointed Chairman of Tata Sons

Awards:

Tata Consultancy Services (TCS), (BSE: 532540, NSE: TCS), a leading global IT
services, consulting and business solutions organization, has been recognized as one of
the Top Regarded Companies and one of the World’s Best Employers in the Forbes 2017
Global 2000 list.

Based on the 2017 Global 2000 list of the world’s biggest public companies published by
Forbes earlier this year, Forbes Media and StatistaInc have recently published smaller
lists of the best performing companies under different categories based on global polls.

To identify the Top Regarded Companies, some 15,000 respondents from 60 countries
were polled online to evaluate the Global 2000 companies’ reputation along four
dimensions: Trustworthiness / Honesty, Social Conduct, Company as an Employer and
Performance of the Product / Services.

17
TCS was among the companies receiving the highest total scores in that poll, ranked #1
across all industries in India and at #4 globally in the Computer Services industry.

TCS was also named as one of the Global 2000 - World’s Best Employers. The list was
compiled by analyzing over 360,000 global recommendations collected through a global
poll and different regional surveys wherein employees were asked to rate their own
employer (internal perception) as well as recommend other employers (public
perception).

Being part of the Tata group and guided by the Tata Code of Conduct, TCS has sought to
uphold the highest levels of transparency, fairness and ethical behavior in all its dealings,
resulting in a very high level of trust among all stakeholders. TCS’ investments as well
as the volunteering effort put in by TCS’ employees in various social initiatives across
the world have won global recognition and created immense goodwill in every
community the company touches.

18
3.4 CURRENT RATIO :

The current ratio is a liquidity ratio that measures a company's ability to pay short-term
and long-term obligations. To gauge this ability, the current ratio considers
the current total assets of a company (both liquid and illiquid) relative to that
company's current total liabilities.

Formula – Current Asset/Current Liabilities

3.5 LIQUID RATIO

In finance, the quick ratio, also known as the acid-test ratio is a type of liquidity
ratiowhich measures the ability of a company to use its near cash or quick assets to
extinguish or retire its current liabilities immediately. Quick assets include those current
assets that presumably can be quickly converted to cash at close to their book values. It is
the ratio between quickly available or liquid assets and current liabilities.

A normal liquid ratio is considered to be 1:1. A company with a quick ratio of less than 1
cannot currently fully pay back its current liabilities.

This ratio is considered to be much better and reliable as a tool for assessment of
liquidity position of firms.

FORMULA - (Current Assets-Inventory)/(Current Liabilities-Bank Overdraft)

3.6 Debt to Equity Ratio

Debt/Equity (D/E) Ratio, calculated by dividing a company's total liabilities by its
stockholders' equity, is a debt ratio used to measure a company's financial leverage. The
D/E ratio indicates how muchdebt a company is using to finance its assets relative to the
value of shareholders' equity.

FORMULA - Total Debt/Shareholders Funds

19
 CHAPTER NO: 04
REVIEW OF LITERATURE

20
4.1 CLASSIFICATION OF RATIOS:

Fixed Assets to Capital Employed Ratio:

Fixed Assets/ Capital Employed Ratio indicate the extent to which the long term funds
are sunk in fixed assets which are supplied by creditors and owners of the firm.

FORMULA - Tangible Fixed Assets/Total Capital Employed

Net Profit Ratio (%)

For the purpose of this ratio, net profit is equal to gross profit minus operating expenses
andincome tax. All non-operating revenues and expenses are not taken into account
because the purpose of this ratio is to evaluate the profitability of the business from its
primary operations.
FORMULA :- EAT*100/Sales

Gross Profit Ratio

Gross profit ratio (GP ratio) is a profitability ratiothat shows the relationship
between gross profit and total net sales revenue. It is a popular tool to evaluate the
operational performance of the business .Theratio is computed by dividing the gross
profit figure by net sales.
FORMULA - Gross Profit*100/Sales

Return on Total Assets Ratio

The return on assets ratio formula is calculated by dividing net income by average total
assets. This ratiocan also be represented as a product of the profit margin and the total
asset turnover. Either formula can be used to calculate the return on total assets.
FORMULA - EAT*100/Total Assets

Return on Equity Ratio

Return on Equity (ROE) Ratio. The return on equity ratio or ROE is a
profitability ratio that measures the ability of a firm to generate profits from its
shareholders investments in the company. In other words, the return on equity
ratio shows how much profit each dollar of common stockholders' equitygenerates.

21
FORMULA - EAT*100/Shareholders Funds

Return on Capital Employed Ratio (ROI):

Return on capital employed (ROCE) and return on investment (ROI) are two
profitability ratios that go beyond a company's basic profit margins to provide more
detailed assessments of how successfully a company conducts its business and
returns value to investors.

FORMULA - EBIT*100/Total Capital Employed

Earnings Per Share (EPS):

'Earnings Per Share (eps)' Definition:Earnings per share or EPS is an important financial
measure, which indicates the profitability of a company. It is calculated by dividing the
company's net income with its total number of outstandingshares.
FORMULA - (EAT-Pref. Dividend)/No. of Equity Shares

P/E Ratio(Price to Earnings Ratio):

In essence, the price-earnings ratio indicates the dollar amount an investor can expect to
invest in a company in order to receive one dollar of that company's earnings. This is
why the P/E is sometimes referred to as the price multiple because it shows how much
investors are willing to pay per dollar of earnings.
FORMULA - Market Price Per Share/EPS

Book Value
The price-to-book ratio, or P/B ratio, is a financialratio used to compare a company's
currentmarketprice to its book value. ... In the first way, the company's market
capitalization can be divided by the company's total book value from its balance sheet.
FORMULA - Shareholders Funds/No of equity shares

Market Value to Book Value

The book-to-market ratio is used to find the value of a company by comparing the book
value of a firm to its market value. Book value is calculated by looking at the firm's
historical cost, or accounting value.Market value is determined in the
stock marketthrough its market capitalization.
FORMULA - Market value/book value

22
Fixed Assets Turnover Ratio
Fixed-asset turnover is the ratio of sales (on the profit and loss account) to the value
of fixed assets(on the balance sheet). It indicates how well the business is using its fixed
assets to generate sales. ... A declining ratio may indicate that the business is over-
invested in plant, equipment, or other fixed assets.
FORMULA - Sales/Fixed Assets

Sales to Working Capital

The working capital turnover ratio is also referred to as net sales to working capital. It
indicates a company's effectiveness in using its working capital. The working
capital turnover ratio is calculated as follows: net annual sales divided by the average
amount of working capital during the same 12 month period.
FORMULA - Sales/Working capital

Working Capital

Working capital is calculated as current assetsminus current liabilities. If current

assets are less than current liabilities, an entity has a working capital deficiency, also
called a working capitaldeficit.

FORMULA :– CURRENT ASSET – CURRENT LIABILITIES

23
CHAPTER-5

OBJECTIVES

24
Research objectives:

 To understand the financials of the company for last 3 financial years.

 To study the qualitative background i.e. History, milestones etc to have
qualitative analysis of the company.
 To calculate and interpret the performance of the company using ratio analysis.

25
 CHAPTER-6

RESEARCH METHODOLOGY

26
6.1 RESEARCH DESIGN

The report is based on secondary data. One of the most important use of search
methodology is that it helps in identifying the problem, collecting, analysing, the
required information and providing alternative solution to the problem. It also helps in
collecting the vital information that is required by the investors to assist them for better
decisions making and help them understanding how mutual fund operates.. The data
collected was of last two years annual returns in percentage, expense ratio and returns of
last two years in percentage.

In this report Analytical research and has Descriptive analysis has been used

In Analytical Research, the researcher has to use facts or information already available,
and analyze them to make critical evaluation of the material.

It involves the in-depth study and evaluation of available information in anattempt

to explain complex phenomenon. Analytical Research is primarily concerned with testing
hypothesis and specifying and interpreting relationships, by analyzing the facts or
information already available

Descriptive research attempts to determine, describe, or identify what is, while

analytical research attempts to establish why it is that way or how it came to be. The
descriptive research uses description, classification, measurement, and comparison to
describe what phenomena are. The analytical research usually concerns itself with cause-
effect relationships

Secondary data refers to data which is collected by someone who is someone other than
the user.Common sources of secondary data for social science include censuses,
information collected by government departments, organizational records and data that
was originally collected for other research purposes. collected by the investigator
conducting the research.

Secondary data analysis can save time that would otherwise be spent collecting data and,
particularly in the case of quantitative data, can provide larger and higher-
quality databases that would be unfeasible for any individual researcher to collect on
their own. In addition, analysts of social and economic change consider secondary data

27
essential, since it is impossible to conduct a new survey that can adequately capture past
change and/or developments. However, secondary data analysis can be less useful in
marketing research, as data may be outdated or inaccurate.

6.2 SCOPE OF THE RESEARCH

Here only three years data has been taken into consideration for analyzing the financial
statements.

Limitation of work

As this work is done in 20 hrs, therefore we have worked only on specific parameters

28
 CHAPTER-7

DATA ANALYSIS AND INTERPRETATION

29
7.1 Product Line of TCS:

TCS offers a suite of products, periodically evaluated by independent research firms such
as Forrester. [5] The list of products include:

 Core Banking Solution (CBS)

 Internet Banking Solution
 Treasury Solution
 Wealth Management Solution
 TCS BaNCS Payments Engine
 Securities Processing
 Mobile Banking Solution
 BaNCS Custody
 Corporate Actions
 BaNCS Digital
 Money Markets &Forex (MMFX)
 BaNCS Insurance
 Branch Channel
 Cheque Book

7.2 Geographical Spread of TCS:

Tcs had its spread all over the world covering the entire world, having its operation
worldwide.

Our CIO advisory offerings provide a deep link between business and IT, and help
you to stay ahead of the constantly changing technology landscape. Our experts help
companies navigate the complexity of today's dynamic environment while addressing
critical issues of new business models, risk, governance, data and security - all while
keeping a sharp eye on cost and quality.

30
Our customized offerings include:

IT vision, strategy and road-mapping deeply aligned to the business

IT architecture and tools recommendation

New operating model development to manage and govern innovative IT

Application and infrastructure optimization for maximum agility

Center-of-excellence build-up and program governance

The Infosys Consulting advisory team has the experience and depth of talent to drive
complex change and deliver results that will make a bottom-line impact.

We help the CIO lead with influence.

Supply Chain & Operations:-

We help senior business leaders transform their value chain through the latest process
innovations and digital capabilities.

Delivering practical, strategy-driven value that optimizes and reinvents the entire
supply chain ecosystem. From target operating model planning to S&OP and IBP, to
spend analysis and sustainability drivers, our experts are equipped to help
organizations leverage the latest technologies to drive efficiencies at scale.

Our customized offerings include:

Operations strategy and process design

Sourcing and innovation strategy

Inventory optimization, logistics, control tower & KPI optimization

Technology recommendation and solution integration

31
Our Consulting supply chain experts possess deep, hands-on experience that will help
you achieve your goals and make a measurable impact across the organization.

Our customized offerings include:

• ERP implementations, upgrades and multi-geography migrations

• S/4 HANA assessment, road-mapping and business planning

• Business process redesign and enterprise application-enabled transformation

• Customer experience optimization across core value-chain, HR and finance

capabilities

• Platform consolidation, post-merger integrations and divestiture programs

At Infosys Consulting, our highly-skilled teams have deep industry experiences in

applying process innovation and technology design to your unique business goals.

We help you plan deliver and run the most innovative ERP approach.

Fig No.7.1

32
7.3 Financial Trends & Ratio:

Current Ratio:

Current Ratio

5.534454245
6
4.555979358
5 4.060183698
4

3 Current Ratio

0
2015-16 2016-17 2017-18

Fig No.7.1

With the help of this graph I think that, in year of 2015-16 company ability to pay short-
term and long-term obligations is comparatively bad but in 2016-17 this liquidity ability
of company goes up and in 2017-18 it decreases. It means may be total current assets of
company is more than total current liabilities. Means investment in financial assets in
decreases 2017-18. 2017-18 year is not benefiter to company as well as investors.

Liquid Ratio:

Liquid Ratio
5.534454245
6 4.555979358
4.060183698
4
Liquid Ratio
2

0
2015-16 2016-17 2017-18

33
 Fig No. 7.2

Above graph shows that the liquidity capacity is less in financial year 2015-16 because
of the inventories are mention in the consolidated balance sheet. In financial year 2016-
17 the liquidity capacity is high comparatively financial year 2015-16 & 2017-18.
Debt to Equity Ratio:

Debt to Equity Ratio

0.0032 0.003130053

0.0031
0.003
0.0029 Debt to Equity Ratio
0.00274406 0.002747574
0.0028
0.0027
0.0026
0.0025
2015-16 2016-17 2017-18

Fig No. 7.3

Fixed Assets to Capital Employed Ratio

Fixed Assets to Capital Employed Ratio

10,517
10,550
10,500
10,450 10,401
10,400 Fixed Assets to Capital
10,350 10,314 Employed Ratio

10,300
10,250
10,200
2015-16 2016-17 2017-18

Fig No.7.4

34
Fixed Assets/ Capital Employed Ratio indicate the extent to which the long term funds
are sunk in fixed assets which are supplied by creditors and owners of the firm. As per
the above graph we considered that, in 2015-16 fund are less sunk in fixed assets which
are supplied by creditors and owners of company also in 2017-18 long term funds
reserve is good as per company shown in financial statement. But comparatively of both
years in 2016-18 this funds investment is going down word direction. Means 2015-16 &
2017-18 years in not profitable than 2016-17 financial year.

Net Profit Ratio (%)

Net Profit Ratio (%)

6.95 6.904994201 6.913856535
6.9
6.85
6.8
6.75
6.7 6.670782428 Net Profit Ratio (%)
6.65
6.6
6.55
6.5
2015-16 2016-17 2017-18

Fig No. 7.5

Net profit ratio shows net profit of the firm. It measures to overall profitability of
business. In above graph in financial year 2015-16 net profit less than net profit of
financial year 2016-17 & 2017-18. In financial year 2017-18 net profitability of company
is little bit decreases comparatively financial year 2016-17. Now it shows that financial
year 2016-17 is better for company in case of profitability.

35
7.4 Gross Profit ratio:

Gross Profit Ratio

28.4972702
28.5 28.24604909

28

27.5
Gross Profit Ratio
26.89789027
27

26.5

26
2015-16 2016-17 2017-18

Fig No.7.6
Gross profit ratio shows the average margin on product sold. This ratio shows the general
profitability of business. Above graph shows gross profit of business in financial year in
2015-16 is bit high comparatively in financial year 2017-18 & 2016-17. Means in
financial year 2015-16 may be sales goes up. In financial year 2017-18 gross profit is
poor than financial year 2015-16 but little bit higher than financial year2016-17. Means
here also financial year 2016-17 shows more sales. So this financial year 2015-16 is
profitable for company.

Return on Total Assets Ratio:

36
 Return on Total Assets Ratio
27.31660232
28
25.53
26 24.34710619
Return on Total Assets Ratio
24

22
2015-16 2016-17 2017-18

Fig No. 7.7

Return on total assets ratio shows income which is earn by the assets of company. This is
an income to business. As per above graph returns on assets of company is getting
decreased during all financial year of company. It decreases every financial year of
business.

Return on Equity Ratio:

Return on Equity Ratio

35 34.07394963
34
33
32 Return on Equity Ratio
30.44236544 30.25838887
31
30
29
28
2015-16 2016-17 2017-18

Fig No. 7.8

37
Return on Capital Employed Ratio (ROI)

Return on Capital Employed Ratio (ROI)

43.30382037
44

42
Return on Capital Employed
40 38.89226955 38.53596781 Ratio (ROI)

38

36
2015-16 2016-17 2017-18

Fig No.7.9

Earnings Per Share (EPS)

Earnings Per Share (EPS)

140 135.4973822
133.7918782
135

130
Earnings Per Share (EPS)
123.5431472
125

120

115
2015-16 2016-17 2017-18

Fig No. 7.10

P/E Ratio(Price to Earnings Ratio)

38
 P/E Ratio(Price to Earnings Ratio)

21.5 21.02623648
21 20.39773194
20.5
20
19.5
19 P/E Ratio(Price to Earnings Ratio)
18.17001176
18.5
18
17.5
17
16.5
2015-16 2016-17 2017-18

Fig No. 7.12

Book Value

Book Value

437.6345178 445.6963351
500
360.7715736
400

300
Book Value
200

100

0
2015-16 2016-17 2017-18

Fig No. 7.13

Market Value to Book Value

39
 Market Value to Book Value

8 6.985029266
6.39224462
5.554863479
6

4 Market Value to Book Value

0
2015-16 2016-17 2017-18

Fig No. 7.14

Fixed Assets Turnover Ratio

Fixed Assets Turnover Ratio

11.74762042
11.8
11.6
11.4
11.2
10.83284856 Fixed Assets Turnover Ratio
11
10.8
10.6
10.4
10.2
2015-16 2016-17

Fig No. 7.15

Sales to Working Capital

40
 Sales to Working Capital
2.345101167
2.5
1.999274402
1.856832411
2

1.5
Sales to Working Capital
1

0.5

0
2015-16 2016-17 2017-18

Fig No. 7.16

Above fig shows the sales to working capital ratio in financial year 2015-16 capital is
high than financial year 2017-18& 2016-17. Means it is good position of business.

Working Capital

Working Capital
65,804 63,396
70,000
60,000 47,644
50,000
40,000 Working Capital
30,000
20,000
10,000
0
2015-16 2016-17 2017-18

Fig No. 7.13

41
 CHAPTER-8

OBERSERVATIONS AND FINDINGS

42
With the help of the data collected from the respondents a lot of new information has
come to light. Data interpretation also helped me find new things in regards to
investments in Tata Consultancy Services and the observations drawn from it are
mentioned below.

Firstly it is observed that compared to the past a few financial years it is observed that net
profit are in continuous flow.

As compared to last three financial years it is observed that Revenue are increasing..

Advertisement is the most important factor and it is also observed that company is
increasing their spending on advertisement.

People prefer over companies shares for investment option.

On the other hand it is also observed that advertisement is the most important factor
while making the mutual fund investment.

43
 CHAPTER-9

SUGGESSTIONS

44
The company should give detail knowledge about why to invest Tata Consultancy
Services various sources like advertisement, TV programme etc. about what is it? How it
works? Company should also take to future investors about What are its benefits for us
with its advertisement or in programmes?

The company should also attract the consumer through different schemes.

The company should give information regarding Tax benefit and Dividend benefit to
investors.

The company should also attract low level income people by showing them the benefits
after investing in company and also about the liquidity funds for the short term to attract
them. Company should target higher income group also who are ready to take more risk.

45
CHAPTER-10

CONCLUSIONS

46
To conclude this report I have found that there has been a noticeable change in investor’s
perspective in regards to the investment in Tata Consultancy Services. Small investors
can make his/her investment in Equity Fund.

It is concluded from the above analysis there are various factors have been identified for
taking investment decision making in Tata Consultancy Services.

47
CHAPTER NO: 11

BIBLEOGRAPHY

48
 Bibliography

www.tcs.com

https://www.moneycontrol.com

www.cagr.com

http://www.wikipedia.com

49