a) Basis of Preparation
 
 The consolidated financial statements of Tata Consultancy Services
 Limited, its subsidiaries and associates (the Group) are prepared
 under the historical cost convention and in accordance with the
 requirements of the Companies Act, 1956.
 
 b) Principles of consolidation
 
 The financial statements of the subsidiary companies used in the
 consolidation are drawn up to the same reporting date as of the
 Company.
 
 The consolidated financial statements have been prepared on the
 following basis:
 
 i) The financial statements of the Company and its subsidiary companies
 have been combined on a line-by-line basis by adding together like
 items of assets, liabilities, income and expenses. Inter-company
 balances and transactions and unrealised profits or losses have been
 fully eliminated.
 
 ii) Interest in a jointly controlled entity is reported using
 proportionate consolidation.
 
 iii) The consolidated financial statements include the share of profit
 / loss of associate companies, which are accounted under the Equity
 method as per which the share of profit of the associate company has
 been added to the cost of investment. An associate is an enterprise in
 which the investor has significant influence and which is neither a
 subsidiary nor a joint venture.
 
 iv) The excess of cost to the Group of its investments in subsidiary
 companies over its share of the equity of the subsidiary companies at
 the dates on which the investments in the subsidiary companies are
 made, is recognised as Goodwill being an asset in the consolidated
 financial statements. Alternatively, where the share of equity in the
 subsidiary companies as on the date of investment is in excess of cost
 of investment of the Group, it is recognised as Capital Reserve and
 shown under the head Reserves and Surplus, in the consolidated
 financial statements.
 
 v) Minority interest in the net assets of consolidated subsidiaries
 consists of the amount of equity attributable to the minority
 shareholders at the dates on which investments are made by the Group in
 the subsidiary companies and further movements in their share in the
 equity, subsequent to the dates of investments.
 
 vi) On disposal of a subsidiary or a jointly controlled entity, the
 attributable amount of goodwill is included in the determination of the
 profit or loss on disposal.
 
 c) Use of estimates
 
 The preparation of financial statements requires the management of the
 Group to make estimates and assumptions that affect the reported
 balances of assets and liabilities and disclosures relating to the
 contingent liabilities as at the date of the financial statements and
 reported amounts of income and expenses during the year. Example of
 such estimates include provision for doubtful debts, employee benefits,
 provision for income taxes, accounting for contract costs expected to
 be incurred to complete software development, the useful lives of
 depreciable fixed assets and provisions for impairment.
 
 d) Fixed Assets
 
 Fixed assets are stated at cost, less accumulated depreciation /
 amortisation. Costs include all expenses incurred to bring the assets
 to its present location and condition.
 
 Fixed assets exclude computers and other assets individually costing Rs.
 50,000 or less which are not capitalised except when they are part of a
 larger capital investment programme.
 
 f) Leases
 
 Where the Group, as a lessor, leases assets under finance leases such
 amounts are recognised as receivables at an amount equal to the net
 investment in the lease and the finance income is based on a constant
 rate of return on the outstanding net investment.
 
 Assets leased by the Group in its capacity as lessee, where the Group
 has substantially all the risks and rewards of ownership are classified
 as finance lease. Such leases are capitalised at the inception of the
 lease at lower of the fair value or the present value of the minimum
 lease payments and a liability is created for an equivalent amount.
 Each lease rental paid is allocated between the liability and the
 interest cost so as to obtain a constant periodic rate of interest on
 the outstanding liability for each year.
 
 Lease arrangements where, the risks and rewards incidental to ownership
 of an asset substantially vests with the lessor, are recognised as
 operating lease. Lease rentals under operating lease are recognised in
 the profit and loss account on a straight-line basis.
 
 g) Impairment
 
 At each balance sheet date, the management reviews the carrying amounts
 of its assets included in each cash generating unit to determine
 whether there is any indication that those assets were impaired. If any
 such indication exists, the recoverable amount of the assets is
 estimated in order to determine the extent of impairment loss.
 Recoverable amount is the higher of an assets net selling price and
 value in use. In assessing value in use, the estimated future cash
 flows expected from the continuing use of the asset and from its
 disposal are discounted to their present value using a pre-tax discount
 rate that reflects the current market assessments of time value of
 money and risks specific to the asset.
 
 Reversal of impairment loss is recognised immediately as income in the
 profit and loss account.
 
 For the purpose of impairment testing, goodwill is allocated to each of
 the Groups cash-generating units expected to benefit from the
 synergies of the acquisition. Cash-generating units to which goodwill
 has been allocated are tested for impairment annually, or more
 frequently when there is an indication that the unit may be impaired.
 If the recoverable amount of the cash-generating unit is less than the
 carrying amount of the unit, the impairment loss is allocated first to
 reduce the carrying amount of any goodwill allocated to the unit and
 then to the other assets of the unit pro-rata on the basis of the
 carrying amount of each asset in the unit. Reversal of impairment loss
 on goodwill because of a change in estimates is not permitted.
 
 h) Investments
 
 Long-term investments are stated at cost, less provision for other than
 temporary diminution in value. Current investments comprising
 investments in mutual funds are stated at the lower of cost and fair
 value, determined on a portfolio basis.
 
 i) Employee benefits (Refer note 5)
 
 i) Post-employment benefit plans
 
 Contributions to defined contribution retirement benefit schemes are
 recognised as an expense when employees have rendered services
 entitling them to contributions.
 
 For defined benefit schemes, the cost of providing benefits is
 determined using the Projected Unit Credit Method, with actuarial
 valuations being carried out at each balance sheet date. Actuarial
 gains and losses are recognised in full in the profit and loss account
 for the period in which they occur. Past service cost is recognised
 immediately to the extent that the benefits are already vested, and
 otherwise is amortised on a straight-line basis over the average period
 until the benefits become vested.
 
 The retirement benefit obligation recognised in the balance sheet
 represents the present value of the defined benefit obligation as
 adjusted for unrecognised past service cost, and as reduced by the fair
 value of scheme assets. Any asset resulting from this calculation is
 limited to the present value of available refunds and reductions in
 future contributions to the scheme.
 
 ii) Short-term employee benefits
 
 The undiscounted amount of short-term employee benefits expected to be
 paid in exchange for the services rendered by employees is recognised
 during the period when the employee renders the service. These benefits
 include compensated absences such as paid annual leave, overseas social
 security contributions and performance incentives.
 
 iii) Long-term employee benefits
 
 Compensated absences which are not expected to occur within twelve
 months after the end of the period in which the employee renders the
 related services are recognised as an actuarially determined liability
 at the present value of the defined benefit obligation at the balance
 sheet date.
 
 j) Revenue recognition
 
 Revenues from contracts priced on a time and material basis are
 recognised when services are rendered and related costs are incurred.
 
 Revenues from turnkey contracts, which are generally time bound fixed
 price contracts, are recognised over the life of the contract using the
 proportionate completion method, with contract costs determining the
 degree of completion.  Foreseeable losses on such contracts are
 recognised when probable.
 
 Revenues from the sale of equipment are recognised upon delivery, which
 is when title passes to the customer.
 
 Revenues from sale of software licenses are recognised upon delivery
 where there is no customisation required. In case of customisation the
 same is recognised over the life of the contract using the
 proportionate completion method.
 
 Revenues from maintenance contracts are recognised pro-rata over the
 period of the contract.
 
 Revenues from Business Process Outsourcing (BPO) services are
 recognised on time and material, fixed price and unit priced contracts.
 Revenue on time and material and unit priced contracts is recognised as
 the related services are rendered. Revenue from fixed price contracts
 is recognised as per the proportionate completion method with contract
 cost determining the degree of completion.
 
 Dividends are recorded when the right to receive payment is
 established. Interest income is recognised on time proportion basis
 taking into account the amount outstanding and the rate applicable.
 
 k) Research and Development
 
 Expenditure on research and development activities is recognised as an
 expense in the period in which it is incurred.  Development costs of
 marketable computer software are capitalised when a products
 technological feasibility has been established until the time the
 product is available for general release to customers. In most
 instances, the Groups products are released soon after technological
 feasibility has been established. Therefore, costs incurred subsequent
 to achievement of technological feasibility are usually not
 significant, and generally most software development costs have been
 expensed.
 
 Fixed assets utilised for research and development are capitalised and
 depreciated in accordance with the depreciation rates set out in
 paragraph 1(e).
 
 l) Taxation
 
 Current income tax expense comprises taxes on income from operations in
 India and in foreign jurisdictions. Income tax payable in India is
 determined in accordance with the provisions of the Income Tax Act,
 1961. Tax expense relating to overseas operations is determined in
 accordance with tax laws applicable in countries where such operations
 are domiciled.
 
 Minimum alternative tax (MAT) paid in accordance to the tax laws, which
 gives rise to future economic benefits in the form of adjustment of
 future income tax liability, is considered as an asset if there is
 convincing evidence that the Group will pay normal income tax after the
 tax holiday period. Accordingly, MAT is recognised as an asset in the
 balance sheet when it is probable that the future economic benefit
 associated with it will flow to the Group and the asset can be measured
 reliably.
 
 Deferred tax expense or benefit is recognised on timing differences
 being the difference between taxable income and accounting income that
 originate in one period and are capable of reversal in one or more
 subsequent periods.  Deferred tax assets and liabilities are measured
 using the tax rates and tax laws that have been enacted or
 substantively enacted by the balance sheet date.
 
 In the event of unabsorbed depreciation and carry forward of losses,
 deferred tax assets are recognised only to the extent that there is
 virtual certainty that sufficient future taxable income will be
 available to realise such assets. In other situations, deferred tax
 assets are recognised only to the extent that there is reasonable
 certainty that sufficient future taxable income will be available to
 realise these assets.
 
 Advance taxes and provisions for current income taxes are presented in
 the balance sheet after off-setting advance tax paid and income tax
 provision arising in the same tax jurisdiction and the Group intends to
 settle the asset and liability on a net basis.
 
 The Group offsets deferred tax assets and deferred tax liabilities if
 it has a legally enforceable right and these relate to taxes on income
 levied by the same governing taxation laws.
 
 m) Foreign currency transactions
 
 Income and expense in foreign currencies are converted at exchange
 rates prevailing on the date of the transaction.  Foreign currency
 monetary assets and liabilities other than net investments in
 non-integral foreign operations are translated at the exchange rate
 prevailing on the balance sheet date. Exchange difference arising on a
 monetary item that, in substance, forms part of an enterprises net
 investments in a non-integral foreign operation are accumulated in a
 foreign currency translation reserve.
 
 Premium or discount on forward exchange contracts and currency option
 contracts are amortised and recognised in the profit and loss account
 over the period of the contract. Forward exchange contracts and
 currency option contracts outstanding at the balance sheet date, other
 than designated cash flow hedges, are stated at fair values and any
 gains or losses are recognised in the profit and loss account.
 
 For the purpose of consolidation, income and expenses are translated at
 average rates and the assets and liabilities are stated at closing
 rate. The net impact of such change is accumulated under foreign
 currency translation reserve.
 
 n) Derivative instruments and hedge accounting
 
 The Group uses foreign currency forward contracts and currency options
 to hedge its risks associated with foreign currency fluctuations
 relating to certain firm commitments and forecasted transactions. The
 Group designates these hedging instruments as cash flow hedges applying
 the recognition and measurement principles set out in the Indian
 Accounting Standard 39 Financial Instruments: Recognition and
 Measurement (Ind AS 39).
 
 The use of hedging instruments is governed by the policies of the
 Company and its subsidiaries which are approved by its respective Board
 of Directors, which provide written principles on the use of such
 financial derivatives consistent with the risk management strategy of
 the Company and its subsidiaries.
 
 Hedging instruments are initially measured at fair value, and are
 remeasured at subsequent reporting dates. Changes in the fair value of
 these derivatives that are designated and effective as hedges of future
 cash flows are recognised directly in shareholders funds and the
 ineffective portion is recognised immediately in the profit and loss
 account.
 
 Changes in the fair value of derivative financial instruments that do
 not qualify for hedge accounting are recognised in profit and loss
 account as they arise.
 
 Hedge accounting is discontinued when the hedging instrument expires or
 is sold, terminated, or exercised, or no longer qualifies for hedge
 accounting. At that time for forecasted transactions, any cumulative
 gain or loss on the hedging instrument recognised in shareholders
 funds is retained there until the forecasted transaction occurs. If a
 hedged transaction is no longer expected to occur, the net cumulative
 gain or loss recognised in shareholders funds is transferred to the
 profit and loss account for the period.
 
 o) Inventories
 
 Raw materials, sub-assemblies and components are carried at the lower
 of cost and net realisable value. Cost is determined on a weighted
 average basis. Purchased goods in transit are carried at cost.
 Work-in-progress is carried at the lower of cost and net realisable
 value. Stores and spare parts are carried at cost, less provision for
 obsolescence.  Finished goods produced or purchased by the Group are
 carried at the lower of cost and net realisable value. Cost includes
 direct material and labour cost and a proportion of manufacturing
 overheads.
 
 p) Government Grants
 
 Government grants are recognised when there is reasonable assurance
 that the Group will comply with the conditions attached to them and the
 grants will be received.
 
 Government grants whose primary condition is that the Group should
 purchase, construct or otherwise acquire capital assets are presented
 by deducting them from the carrying value of the assets. The grant is
 recognised as income over the life of a depreciable asset by way of a
 reduced depreciation charge.
 
 Other government grants are recognised as income over the periods
 necessary to match them with the costs for which they are intended to
 compensate, on a systematic basis.
 
 q) Provisions, Contingent Liabilities and Contingent Assets
 
 A provision is recognised when the Group has a present obligation as a
 result of past event and it is probable that an outflow of resources
 will be required to settle the obligation, in respect of which reliable
 estimate can be made.  Provisions (excluding retirement benefits) are
 not discounted to its present value and are determined based on best
 estimate required to settle the obligation at the balance sheet date.
 These are reviewed at each balance sheet date and adjusted to reflect
 the current best estimates. Contingent liabilities are not recognised
 in the financial statements. A contingent asset is neither recognised
 nor disclosed in the financial statements.
 
 r) Cash and cash equivalents
 
 The Group considers all highly liquid financial instruments, which are
 readily convertible into cash and have original maturities of three
 months or less from the date of purchase, to be cash equivalents.
 
 3) Acquisitions / Divestments
 
 a) On June 30, 2010, Syscrom S.A. Chile has merged with Tata
 Consultancy Services BPO Chile S.A. The merged entity is a wholly owned
 subsidiary of TCS Inversiones Chile Limitada.
 
 b) On June 30, 2010, Custodia De Documentos Interes Limitada has merged
 with Tata Consultancy Services BPO Chile S.A.  The merged entity is a
 wholly owned subsidiary of TCS Inversiones Chile Limitada.
 
 c) On July 31, 2010, Tata Consultancy Services Chile S.A. has merged
 with Tata Consultancy Services BPO Chile S.A. The merged entity is a
 wholly owned subsidiary of TCS Inversiones Chile Limitada.
 
 d) On August 31, 2010, the Company, through its subsidiary, acquired
 100% equity interest in Diligenta 2 Limited (formerly Unisys Insurance
 Services Limited).
 
 e) National Power Exchange Limited ceased to be an associate of the
 Company w.e.f. September 4, 2010.
 
 f) On September 23, 2010, the Company subscribed to 74% of the equity
 share capital of MahaOnline Limited.
 
 g) On October 4, 2010, the Company, through its subsidiary, acquired
 100% equity share capital of MS CJV Investments Corporation.
 Consequently, the group holding in Tata Consultancy Services (China)
 Co., Ltd. has increased from 65.94% to 74.63%.
 
 h) On October 8, 2010, the Company has acquired 100% equity share
 capital of Retail FullServe Limited (formerly SUPERVALU Services India
 Private Limited).
 
 i) On October 15, 2010, Financial Network Services (H.K.) Limited
 (subsidiary of TCS Financial Solutions Australia Holdings Pty Limited)
 has been voluntarily liquidated.
 
 j) On December 1, 2010, Exegenix Research Inc. and ERI Holding Corp.
 have merged with Tata Consultancy Services Canada Inc. The merged
 entity is a wholly owned subsidiary of Tata Consultancy Services
 Limited.
 
 k) On January 27, 2011, the Company, through its subsidiary, subscribed
 to 100% share capital of CMC eBiz, Inc.