1) The Company has given undertakings to (a) Bank of China Co. Limited,
 not to transfer its controlling interest in TCS Financial Solutions
 Australia Pty Limited, a wholly owned subsidiary of TCS FNS Pty Limited
 and (b) the Government of Maharashtra not to divest its shareholding in
 MahaOnline Limited except to an affiliate.
 
 2) Retirement benefit plans
 
 a) Defined contribution plans
 
 The Company and its subsidiaries make Provident Fund and Superannuation
 Fund contributions to defined contribution retirement benefit plans for
 qualifying employees. Under the schemes, the Company and its
 subsidiaries are required to contribute a specified percentage of the
 payroll costs to fund the benefits. The Provident Fund scheme
 additionally requires the Company and its subsidiaries to guarantee
 payment of interest at rates notified by the Central Government from
 time to time, for which shortfall has been provided for as at the
 Balance Sheet date.
 
 The Group recognised Rs. 320.01 crores (Previous year : Rs. 264.68 crores)
 for provident fund contributions and Rs. 99.82 crores (Previous year : Rs.
 77.21 crores) for superannuation contributions in the profit and loss
 account. The contributions payable to these plans by the Group are at
 rates specified in the rules of the schemes.
 
 The Group has contributed Rs. 68.60 crores (Previous year : Rs. 53.01
 crores) towards foreign defined contribution plans.
 
 b) Defined benefit plans
 
 In accordance with Indian law, the Company and its subsidiaries in
 India provide for gratuity, post retirement medical benefit and pension
 plan, a defined benefit retirement plan covering eligible employees in
 India. The plan provides for a lump sum payment to vested employees at
 retirement, death while in employment or on termination of employment
 in an amount equivalent to 15 to 30 days salary payable for each
 completed year of service. Vesting occurs upon completion of five years
 of service. The measurement date used for determining retirement
 benefits for gratuity is March 31. Certain overseas subsidiaries of the
 Company also provide for retirement benefit plans in accordance with
 the local laws.
 
 The present value of the defined benefit obligation and the related
 current service cost were measured using the Projected Unit Credit
 Method, with actuarial valuation being carried out at each balance
 sheet date.
 
 The following table set out the funded status of the retirement benefit
 plans and the amounts recognised in the financial statements:
 
 3) Unbilled revenue as at March 31, 2011, amounting to Rs. 1348.85 crores
 (March 31, 2010 : Rs. 1201.14 crores) primarily comprises of the revenue
 recognised in relation to efforts incurred on turnkey contracts priced
 on a fixed time, fixed price basis.
 
 4) Research and development expenditure aggregating Rs. 106.13 crores
 (Previous year : Rs. 84.44 crores) was incurred during the year.
 
 5) Sale of Equipment is net of excise duty of Rs. 0.27 crore (Previous
 year : Rs. 0.39 crore).
 
 6) Segment Reporting
 
 The Group has identified business segments (industry practice) as its
 primary segment and geographic segments as its secondary segment.
 
 Business segments are primarily financial services comprising customers
 providing banking, finance and insurance services, manufacturing
 companies, companies in retail and consumer packaged goods industries,
 companies in telecommunication, media and entertainment and others such
 as energy, resources and utilities, Hi-Tech industry practice, life
 science and healthcare, s-Governance, travel, transportation and
 hospitality, products, etc.
 
 Revenues and expenses directly attributable to segments are reported
 under each reportable segment. Expenses which are not directly
 identifiable to each reporting segment have been allocated on the basis
 of associated revenues of the segment and manpower efforts. All other
 expenses which are not attributable or allocable to segments have been
 disclosed as unallocable expenses.
 
 Assets and liabilities that are directly attributable or allocable to
 segments are disclosed under each reportable segment. All other assets
 and liabilities are disclosed as unallocable. Fixed assets that are
 used interchangeably among segments are not allocated to primary and
 secondary segments.
 
 Geographical revenues are allocated based on the location of the
 customer. Geographic segments of the Group are Americas (including
 Canada and South American countries), Europe, India and Others.
 
 7) Current tax is net of the effect of additional provision (net) of Rs.
 132.76 crores for the year ended March 31, 2011 (Previous year : X
 39.27 crores) in domestic and certain overseas jurisdictions relating
 to earlier years.
 
 8) Related Party Disclosures
 
 A) Related Parties and their Relationship
 
 I) Holding Company
 
 Tata Sons Limited
 
 II) Fellow Subsidiaries with whom the Group has transactions
 
 - Tata Capital Limited
 
 - Tata AIG General Insurance Company Limited
 
 - Tata AIG Life Insurance Company Limited
 
 - Tata Consulting Engineers Limited (formerly TCE Consulting Engineers
 Limited)
 
 - Tata Housing Development Company Limited
 
 - Tata Limited
 
 - Panatone Finvest Limited
 
 - Tata Business Support Services Limited
 
 - Tata Sky Limited
 
 - Tata Teleservices Limited
 
 - Tata Teleservices (Maharashtra) Limited
 
 - VIOM Networks Limited (Formerly Wireless - TT Info Services Limited)
 
 - Infiniti Retail Limited
 
 - Computational Research Laboratories Limited
 
 - Tata Realty And Infrastructure Limited
 
 - Tata Securities Limited
 
 - e-Nxt Financials Limited
 
 - Tata Investment Corporation Limited
 
 - Nova Integrated Systems Limited
 
 - Tara Aerospace Systems Limited
 
 - Tata Advanced Systems Limited
 
 - TC Travel And Services Limited Tata Capital Pic (UK)
 
 - Tata Aerostructure Limited (w.e.f. 05.04.2010)
 
 - TT Holdings & Services Private Limited (w.e.f. 25.08.2010)
 
 - Tata Industries Limited (w.e.f. 01.09.2010)
 
 - Tata Advanced Materials Limited (w.e.f. 01.09.2010)
 
 - Tata International Limited (w.e.f. 01.09.2010)
 
 - Tata Africa Holdings (SA) (Proprietary) Limited (w.e.f. 01.09.2010)
 
 - TATA Africa Holdings (Kenya) Limited (w.e.f. 01.09.2010)
 
 - Tata Automobile Corporation (SA) (Proprietary) Limited (w.e.f.
 01.09.2010)
 
 - Tata Autocomp Systems Limited (w.e.f. 01.09.2010)
 
 - Drive India Enterprise Solutions limited (w.e.f. 01.09.2010)
 
 III) Associate
 
 - National Power Exchange Limited (ceased to be an associate w.e.f.
 04.09.2010)
 
 IV) Key Management Personnel
 
 - Mr. N. Chandrasekaran
 
 - Mr. S. Mahalingam
 
 - Mr. Phiroz Vandrevala
 
 9) Contingent Liabilities
 
                                            (Rs. crores)
 
 Particulars                         As at            As at
                                   March 31, 2011   March 31, 2010
 
 Claims against the Group not 
 acknowledged as debt                82.83            114.33
 
 Income Taxes (See note (i) below)  842.04            471.61
 
 Indirect Taxes                     144.68            121.89
 
 Guarantees given by the Group 
 (See note (ii) below)             2259.48           1923.19
 
 Unexpired Letters of Credit          1.57              0.15
 
 Other Contingencies                  0.94               -
 
 Notes:
 
 i) Income tax matters includes Rs. 236.41 crores (March 31, 2010 : Rs.
 212.59 crores) in respect of TCS e-Serve Limited, in which the Company
 has 96.26 percent stake. As on the acquisition date, i.e. December 31,
 2008, TCS e-Serve Limited had net advance taxes aggregating to Rs. 185.13
 crores against the disputed amounts for the various assessment years.
 The Company is entitled to an indemnification of the above referred
 contingent claims on TCS e-Serve Limited from the seller and would be
 required to refund to the seller, amounts equal to monies received by
 TCS e-Serve Limited, on all such claims, as an adjustment to the
 purchase price consideration.
 
 ii) The Group has provided guarantees aggregating to Rs. 1978.41 crores
 (GBP 275.60 million) (March 31, 2010 : Rs. 1719.32 crores) (GBP 252.50
 million) to third parties on behalf of its subsidiary Diligenta
 Limited. The Group does not expect any outflow of resources in respect
 of the above.
 
 iii) The Group has examined the social security and tax aspects of
 contracts with legal entities which provide services to an overseas
 subsidiary and, based on legal opinion, concludes that the subsidiary
 is in compliance with the related statutory requirements.
 
 10) During the year ended March 31, 2011, the Company has received Rs.
 27.33 crores (USD 6 million) from the seller of an investment against
 the release of an indemnification obligation, which has been adjusted
 against the goodwill arising on consolidation.
 
 11) Commitments
 
 i) Estimated amount of contracts remaining to be executed on capital
 account and not provided for (net of advances) Rs. 1208.27 crores (March
 31, 2010 : Rs. 1172.62 crores).
 
 ii) Phoenix Group Services Limited (Phoenix) (formerly Pearl Group
 Services Limited ) has an equity holding of 24% in Diligenta Limited.
 Under the shareholders agreement dated March 23, 2006, the Company has
 a call option to purchase all the shares held by Phoenix at fixed price
 of Rs. 217.08 crores (GBP 30.24 million) at the end of fourth year and
 Phoenix has a put option to sell the shares to the Company at the same
 price at the end of the fifth year. The Company has further call option
 commencing from the sixth year till the end of the eightieth year. As
 at March 31, 2011, neither of the option has been exercised.
 
 iii) The Company has a purchase commitment towards India Innovation
 Fund for the uncalled amount of Rs. 90,000 per unit against the balance
 investment of 1000 units aggregating to Rs. 9.00 crores (March 31, 2010 :
 Rs. 9.00 crores).
 
 iv) The share purchase agreement for acquisition of Comicrom S.A.
 (merged with Tata Consultancy Services Chile S.A.) provided for
 additional contingent consideration payable to the previous owners. A
 sum of Rs. 4.55 crores (USD 1 million) has been paid by the Company
 during the year ended March 31, 2011, towards full and final settlement
 of its dues under the agreement.
 
 12) Derivative Financial Instruments
 
 The Company and its subsidiaries, in accordance with its risk
 management policies and procedures, enter into foreign currency forward
 contracts and currency option contracts to manage its exposure in
 foreign exchange rates. The counter party is generally a bank. These
 contracts are for a period between one day and eight years.
 
 13) Increase in payables in respect of purchase of fixed assets
 amounting to Rs. 29.13 crores for the year ended March 31, 2011 (Previous
 year : Rs. 5.02 crores) have been considered as a non cash transaction.
 
 14) Figures pertaining to the subsidiary companies have been
 reclassified wherever necessary to bring them in line with the Group
 financial statements.
 
 15) Previous years figures have been recast / restated wherever
 necessary.
 
 16) Previous years figures are in italics.