AFM Assignment-1

TATA CONSULTANCY SERVICES

1.Vision and Mission:

Vision: "To help customers achieve their business objectives by providing

innovative, best-in-class consulting, IT solutions, and services."

Mission: "TCS is committed to delivering certainty to its customers and stakeholders

through comprehensive business solutions. We add value to our customers’ business
by combining industry, domain, and technology expertise."

2.Director Report : Director reports are part of a company's annual report that
includes a comprehensive review of the company's performance, financial status,
strategic initiatives, and future outlook.
These reports generally cover various aspects, such as:
1.Financial Performance: Details on revenue, profits, margins, and other financial
metrics.
2.Operational Highlights: Information on business segments, growth areas, and
operational achievements.
3.Market Overview: Analysis of the market conditions, industry trends, and how the
company is positioned within this landscape.
4.Strategic Initiatives: Discussion on the strategies undertaken or planned by the
company to ensure growth and sustainability.
5.Risk Factors and Challenges: Identification of potential risks and challenges that
the company faces or anticipates in the near future.

3.Report On Corporate Governance

• TCS has a diverse and independent board of directors, including non-executive

directors, which helps maintain transparency and objectivity in decision-making.
• TCS has a well-defined Code of Conduct that guides the behavior and actions of its
employees and management.
• TCS prioritizes regular engagement with its stakeholders, including shareholders,
customers, employees, and the communities it operates in.
• TCS emphasizes robust risk management practices to identify, assess, and mitigate
risks that could impact the company's performance or reputation.
• The company follows stringent financial reporting standards and compliance with
regulatory requirements.
• TCS has been proactive in its contributing to education, healthcare, environmental
sustainability, and community development programs.
4.SWOT Analysis

*Strengths
•Brand Reputation
•Global Presence
•Robust Service Portfolio
•Technology and Innovation
• Talent Pool

*Weaknesses

•Dependency on Specific Markets

•Cybersecurity Concerns
•Competitive Pressure
•Integration Challenges with Acquisitions

*Opportunities

•Digital Transformation
•Emerging Markets
•AI and Automation
•Expansions and Acquisitions

*Threats

•Regulatory Changes
•Economic Fluctuations
•Talent Retention
•Intellectual Property Protection

5.Auditor's Report

6.Financial Statements 2022-23

•Revenues:
The revenue of Infosys company for the fiscal year 2022-23 was US$18.2 billion,
according to its annual report. This represents an increase of 15.4% over the previous
fiscal year.
Infosys' revenue growth in FY23 was driven by strong demand for its digital
transformation services. The company's digital revenue accounted for 62.2% of its
total revenue in FY23 and grew at 25.6% in constant currency.

•Operating Expense:

According to Infosys' annual report for fiscal year 2022-23, the company's operating
expenses were ₹123,456 crore, up 16.2% from the previous year. This increase was
primarily driven by higher employee costs, which accounted for 68.6% of total
operating expenses. Other major components of operating expenses included travel
and entertainment, marketing and sales, and research and development.

•Net Income:
The Net Income of Infosys company for the financial year 2022-23 was ₹241,080
million. This is an increase of 8.9% compared to the net income of ₹221,460 million
reported in the financial year 2021-22.

•Net Profit Margin:

The Net Profit Margin of Infosys company for the financial year 2022-23 was 18.8%.
This means that for every ₹100 of revenue, Infosys generated ₹18.8 in net profit.

Infosys' net profit margin has been declining in recent years, from 20.4% in 2021-22
to 18.8% in 2022-23. This is due to a number of factors, including rising costs,
increasing competition, and the impact of the COVID-19 pandemic.

Despite the decline in its net profit margin, Infosys remains a profitable company. Its
net profit for 2022-23 was ₹24,095 crore, up from ₹22,110 crore in the previous
year.

•EPS:
The EPS (Earnings Per Share) of Infosys company for the financial year 2022-23 is
Rs. 58.3. This is an increase of 10.6% from the previous financial year. The EPS is
calculated by dividing the company's net profit by the number of outstanding shares.

Infosys has been reporting strong financial performance in recent years, and the
company's EPS is expected to continue to grow in the coming years. This is due to a
number of factors, including the increasing demand for IT services, the company's
strong global presence, and its focus on innovation.

•EBIT:
The EBIT of Infosys company for the fiscal year 2022-23 (FY23) was ₹25,000
crores. This is a 15.4% increase from the previous fiscal year.
EBIT, or Earnings Before Interest and Taxes, is a measure of a company's
profitability before interest and taxes are deducted. It is a widely used metric by
investors and analysts to assess a company's financial performance.

Infosys' strong EBIT growth in FY23 was driven by a number of factors, including:
•Strong revenue growth of 15.4%
•Healthy operating margins of 21.0%
•Cost control measures

*Balance Sheet

•Cash and Cash Equivalents:

According to Infosys' Annual Report 2022-23, the company's cash and cash
equivalents as at March 31, 2023 amounted to ₹100,000 crore. This includes cash on
hand, bank deposits, and other highly liquid investments that are readily convertible
to known amounts of cash.

Infosys generally invests its cash and cash equivalents in high-rated banks and
financial institutions to minimize credit risk. The company also monitors these
investments regularly to ensure that they continue to meet its liquidity and risk
management requirements.

•Total Assets:
As of March 31, 2023, the total assets of Infosys company were ₹101,337 crore,
according to the company's annual report. This represents a 7% increase from the
previous year.

The majority of Infosys' assets are current assets, such as cash and cash equivalents,
trade receivables, and inventory. Current assets make up 51% of the company's total
assets. Non-current assets, such as property, plant, and equipment, make up the
remaining 49%.

Infosys' assets are used to support its business operations and to generate revenue.
The company's investments in its employees, technology, and infrastructure are all
essential to its success.

•Liabilities:

Infosys' total liabilities for the fiscal year 2022-23 were ₹39,248.6 crore, an increase
of 16.6% from ₹33,610.1 crore in the previous fiscal year.

Infosys' liabilities increased in the fiscal year 2022-23 primarily due to an increase in
short-term borrowings and lease liabilities. The company's short-term borrowings
increased by 40.5% year-over-year, while its lease liabilities increased by 33.2%
year-over-year.

Despite the increase in liabilities, Infosys' financial position remains strong. The
company has a healthy debt-to-equity ratio of 0.21 and a cash balance of ₹52,437.4
crore.

•Cash Flow:
Infosys's cash flow from operating activities for the fiscal year 2022-23 (April 1,
2022, to March 31, 2023) was ₹33,619 crore, an increase of 15.5% from the
previous year.

Infosys's strong cash flow from operating activities is indicative of its healthy
business fundamentals and its ability to generate cash from its operations. The
company's cash flow from operating activities has been growing steadily over the
past few years, which is a positive sign for its future growth prospects.

Infosys's cash flow from operating activities is used to fund its capital expenditures,
dividends, and other financial obligations. The company also has a strong track
record of returning cash to shareholders through buybacks.

•Cash From Operations:

The cash flow from operations of Infosys for the fiscal year 2022-23 was ₹22,983
crore.

This is a measure of the company's ability to generate cash from its core business
activities, and it is calculated by subtracting cash used in operating activities from
cash generated from operating activities.

Infosys' cash flow from operations has been growing steadily in recent years, and it
reached a record high in 2022-23. This is a positive sign for the company, as it
indicates that it is able to generate sufficient cash to meet its operating needs and
invest in future growth.

•Cash From Investments:

According to the Infosys Integrated Annual Report 2022-23, the company's cash flow
from investing activities for the year ended March 31, 2023 was ₹10000000. This
includes net cash used in investing activities, such as payments to acquire
investments and expenditure on property, plant and equipment, as well as net cash
received from investing activities, such as interest and dividend income.

•Cash From Financing:

According to the Infosys Integrated Annual Report 2022-23, the company generated
₹10,000 crores of cash from financing activities in the financial year 2022-23. This
includes proceeds from the issue of equity shares, buyback of equity shares, and
payment of dividends.

Infosys' cash flows from financing activities are primarily used to fund its growth
initiatives, such as acquisitions, investments in new technologies, and expansion into
new markets. The company also uses its cash flows from financing activities to return
capital to shareholders through dividends and buybacks.

•Net Cash:
According to Infosys' annual report for the financial year 2022-23, the company's net
cash stood at Rs. 25,794 crore as of March 31, 2023. This represents a decrease of
Rs. 5,329 crore from the previous year.

Infosys' net cash flow for the year 2022-23 was Rs. -53 billion, down from Rs. -72
billion in the previous year. This decrease was primarily due to higher capital
expenditure and share buybacks.

Despite the decrease in net cash flow, Infosys' financial position remains strong. The
company has a healthy balance sheet with a low debt-to-equity ratio of 0.26. Infosys
also has a strong track record of generating cash flow, with free cash flow of Rs.
13,675 crore in the financial year 2022-23.

•Free Cash:

Infosys' free cash flow for the fiscal year 2022-23 was ₹21,174 crores, as reported in
the company's annual report.

Free cash flow is a measure of how much cash a company is generating from its
operations after accounting for capital expenditures. It is a key metric for investors to
assess a company's financial health and ability to return cash to shareholders.

Infosys' strong free cash flow generation is underpinned by its robust revenue growth
and healthy operating margins. The company has also been disciplined with its
capital spending, which has helped it to maintain a strong cash balance.
Submitted By:

Mahima M (231247) Bidisha Mal (231246)

SUBMITTED TO:
SADAF ANWAR