Question

In: Finance

Find a good beneficial company, historical background such as: destinations, financial information overall on the company....

Find a good beneficial company, historical background such as: destinations, financial information overall on the company. Could be big, little, domestic, international. What is the name od this company, address, CFO name. Why was it selected?

Solutions

Expert Solution

Company's Name - TCS (Tata Consultancy Services)

Address of head office: 9th Floor, Nirmal Building, Nariman Point, Mumbai, Maharastra, Pin- 400021

CFO of the Company - V Ramakrishnan

CEO & MD of the company - Rajesh Gopinathan

Historical Background -

  • It was started in 1968 by TATA Sons Limited, with a business of card services to TISCO (now Tata Steel) and Inter-Branch Reconciliation System for the Central Bank of India. Now it is known for employing the largest number of women workforce i.e. 35.3%.
  • It is a product-based as well as a service-based company and has its global presence in more than 46 countries. It is ranked 10th in FORTUNE India 500 list in 2018.
  • It was the first IT company in India which breached a market cap of $100 billion.

Financial Information

Brief INCOME STATEMENT (figures in crores)

YEAR FY20 FY19 FY18
Total Income 161,541 150,774 126,746
Total Expenses 118,369 109,013 92,602
EBIT 43,172 41,761 34,144
NET PROFIT 32,447 31,562 25,880

Brief BALANCE SHEET (figures in crores)

YEAR FY20 FY19 FY18
Share Capital 375 375 191
Reserves & Surplus 83,751 89,071 84,937
Current Liabilities 27,060 22,084 17,828
Other Liabilities 9,713 3,413 3,340
Total Liabilities 120,899 114,943 106,296
YEAR FY20 FY19 FY18
Fixed Assets 20,124 11,553 11,506
Current Assets 90,237 92,131 81,224
Other Assets 10,538 11,259 13,566
Total Assets 120,899 114,943 106,296

Brief CASH FLOW STATEMENT (figures in crores)

YEAR FY20 FY19 FY18
Operating Activities 32,369 28,593 25,067
Investing Activities 8,565 1,596 2,886
Financing Activities -39,915 -27,897 -26,885
Others 403 49 218
Net Cash Flow 1,422 2,341 1,286

The company has strong fundamentals, over 30 years of operation, and a profitable as well as a growing organization. It has very good liquidity and dividend policy. It's stock is currently trading at INR 2,400 which has risen from INR2,000 (Feb'2020). So it has been creating wealth for its shareholders also.


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