INTR

MINIMUM ALTERNATE TAX AND

ODUC ITS EVELUTION
Minimum alternate taxation is a measure to
TIONaddress the growing problem of companies that declare high profits, but
pay low or no taxes (zero-tax companies). Parliament has
experimented with its approach to MAT since 1983 and continues to do
so in the proposed Direct Tax Code. This project show the various
changes in the MAT regime made over the years and the interpretational
problems that have arisen with provisions for MAT credit, advance
payment of MAT and calculation of book profits and its role in the IT
sectors that how much it would affects their tax liabilities by using
normal tax procedure and MAT. It then considers the merits of this
taxation regime with reference to the economic effects of the burden of
this tax, and the attendant compliance and record-keeping costs. With
this in mind, this paper argues that the MAT regime should be modified
and puts forth two proposals for reform to make the corporate taxation
regime clear and efficient.
INTRODUCTION
Over the course of the last twenty years, Parliament has experimented
with various approaches to address the problem of disproportionately
low tax revenue collected from highly profitable companies. The
primary cause of this problem is not tax evasion or a lack of adequate
government enforcement, but the statutory features of the tax system
incentives, deductions and exemptions. These policies have made it
possible for companies to greatly reduce their taxable income, leading
observers to coin the phrase zero-tax companies. Parliament has
responded by amending the Income Tax Act, 1961 (ITA) to introduce a
system of Minimum Alternate Tax (MAT).
DEFINATION OF MAT

The concept of

Minimum Alternate Tax (MAT) was

introduced in the direct tax system to make sure that

companies having large profits and declaring substantial
dividends to shareholders but who were not contributing to the
Govt. by way of corporate tax, by taking advantage of the
various incentives and exemptions provided in the Income-tax
Act, pay a fixed percentage of book profit as minimum
alternate tax Normally, a company is liable to pay tax on the
income computed in accordance with the provisions of the
income tax Act, but the profit and loss account of the company
is prepared as per provisions of the Companies Act. There were
large number of companies who had book profits as per their
profit and loss account but were not paying any tax because
income computed as per provisions of the income tax act was
either nil or negative or insignificant. In such case, although
the companies were showing book profits and declaring
dividends to the shareholders, they were not paying any
income tax. These companies are popularly known as Zero
Tax companies. In order to bring such companies under the
income tax act net, section 115JA was introduced w.e.f
assessment year 1997-98. According to this section, if the
taxable income of a company computed under this Act, in
respect of previous year 1996-97and onwards is less than 30 %
of its book profits, the total income of such company is
chargeable to tax for the relevant previous year shall be
deemed to an amount equal to 30 % of such book profits. The
Finance Act, 2000, inserted section 115JB of the Income-tax
Act, 1961, with effect from 1-4-2001, i.e., from the assessment
year 2001-02 providing for levy of Minimum Alternate Tax on

companies. Section 115JB conceptually differs from erstwhile

section 115JA, which provided for MAT on companies, so far as
it does not deem any part or the whole of book profit as total
income. However, the new provision of section 115JB provides
that if tax payable on total income is less than 7.5% of book
profit, the tax payable under this provision shall be 7.5% of
book profit. The Finance Act, 2009 changes increased the MAT
rate form 10% to 15% which will result in higher cash outflow
for Zero Tax companies. At a time, when most industries are
facing credit crunch, imposing higher tax, for which credit may
be available in future seems to be out of sync with the finance
ministers claim that this Budget is the first stimulus for the
economy. Besides the rate hike, the base for MAT has also been
raised. Till now, any decline in the value of assets could be
netted off to arrive at the base for calculating MAT. Not
anymore. Now, any diminution in the value of assets will have
to be added back to the book profit, which serves as the base.
OBJECTIVES OF MINIMUM ALTERNATE TAX
The concept of MAT was introduced under the ITA to tax zero-tax
companies, i.e., companies that make high book profits and declare
substantial dividends to their shareholders but have no or insignificant
taxable income under the ITA because of the exemptions, deductions
and incentives provided therein in the form of a liberal rate of
depreciation, sector and region-specific exemptions, deductions etc.
MAT is in consonance with a fundamental canon of taxation all entities
must be taxed in proportion to their ability to pay. The current MAT
regime under the ITA is similar to the first such regime the US
Alternate Minimum Tax (AMT). As with the Indian law, the legislative
intent for introducing this kind of taxation was to ensure that no
taxpayer with substantial economic income can avoid significant tax
liability by using exclusions, deductions and credits. It is pertinent to

note that AMT applies to all taxpayers including individuals and

companies. In contrast, the provisions of MAT under the ITA are
applicable only to companies and limited liability partnerships. A
taxpayer is liable to pay under the AMT regime if the Tentative
Minimum Tax (TMT) is in excess of the regular taxable income for a
particular year. The starting point for the calculation of the TMT is the
regular taxable income itself. This income is recalculated through
various adjustments and preferences mentioned under the provisions
of the Internal Revenue Code. One of the most important adjustments is
made through the process of business untaxed reported profits (BUP)
and adjusted current earnings (ACE). Both these adjustments entail an
addition of a certain percentage of the difference between its tentative
adjusted minimum tax income (which consists of the minimum income
base before the calculation of BUP or ACE) and its net book income, to
the calculation of the minimum tax income. As will be seen, the TMT is
a parallel of book profit under the Companies Act in the Indian MAT
system, although they may differ in their computation. The intention of
the taxation regime in both jurisdictions is, however, the same to curtail
the benefits of various exemptions and deductions if they results in little
or no tax liability.
HISTORY OF THE MINIMUM ALTERNATE TAX

The first legislative step towards addressing the problem of zero-tax

companies was made in 1983, with the addition of section 80VVA to the
ITA.10 section 80VVA provided that the aggregate amount of
deductions (under specified heads) that a company could make in one
year could not exceed 70 percent of the pre-incentive total income.11 In
effect, there was a ceiling on the total amount of incentives or
allowances that a company was allowed to avail of in a given year. It,
however, allowed companies to carry forward these unabsorbed
allowances and set it off against taxable income in the future. This
provision, however, proved to be unsuccessful in preventing Companies
from avoiding tax liability and a new solution was sought In 1987, this
provision was replaced with section 115J, by which for the first time, the
quantum of taxable income was determined with respect to the book
profits. Under section 115J, if the total taxable income of a company
was less than 30 percent of its book profits, then the total income to be
taxed was deemed to be 30 per cent of the book profits, and such total
income was taxed at the applicable rate. Book profits were defined as
the the net profit as shown in the profit and loss account for the
relevant previous year as determined by the provisions in Parts II and
III of Schedule VI to the Companies Act, with certain positive and
negative adjustments. Depreciation losses also had to be calculated as
per the provisions of the Companies Act. Thus, the concept of deemed
total income was introduced. Consequently, companies now had to
maintain two sets of accounts one for calculating total taxable income
under the general provisions of the ITA and the second for book profits
under the provisions of the Companies Act. At the end of the year,
companies were liable to pay tax on the amount calculated under the
general provisions of the ITA or on the book profits calculated under the
MAT provisions, whichever was higher. This provision was, however,
eventually repealed in 1990.Provisions relating to MAT were reintroduced in the ITA in 1997 vide section 115JA, in a modified form,
introducing the concept of MAT credit. Under section 115JA, MAT
credit accrues to a company each year, as the difference (if any) between

the tax calculated under the provisions of MAT and the tax calculated
under the general provisions of the ITA. This credit would be carried
forward and may be set-off when the tax amount calculated under the
general provisions is higher (and hence payable) than the tax amount
under the MAT provisions subject to MAT. The MAT credit was,
however, allowed to be carried forward and set-off only for five
assessing years immediately succeeding the assessing year in which the
MAT credit was first computed. These provisions were eventually
replaced by section 115JB in 2000 which is the provision of law
embodying the current MAT regime. The provisions relating to MAT
credit were repealed in 2000 with this amendment, but re-introduced in
2005 in section 115JAA. Section 115JB is a complete conceptual change
from deemed total income to deemed tax on book profits. This means
that while the previous regimes focused on the determination of
minimum deemed income to be taxed under the prevailing rate, the new
regime under section 115JB laid emphasis on computing the minimum
deemed tax. This section was amended by the Finance Act, 2002, with
retrospective effect from April 1, 2001, substituting the words the tax
payable for the relevant deemed year shall be 7.5% of the book profit
for the words such book profit shall be deemed as total income of an
assessed and the tax payable by the assesse for the total income shall be
the amount of 7.5%.The main difference between the initial and
amended provision is that the former provided for an obligation to pay
tax on 7.5 per cent of the book profits without deeming book profits to
be total income. The MAT rate was initially fixed at 7.5 per cent of book
profits but has gradually been increased to 18.5 per cent by the Finance
Act, 2011. As of 2005, section 115JB does not apply. To the income
from any business carried on in or any services rendered by a company
in a Special Economic Zone.
MINIMUM ALTERNATE TAX UNDER SECTION 115JB
Under the provisions of the ITA, every company, domestic or foreign, is
required to pay MAT. As per section 115JB, where the income tax

computed under the Act in respect of any previous year relevant to the
assessing year, is less than 18.5 per cent of its book profits, such book
profit shall be deemed to be the total income of an assessed and tax
payable on such total income shall be 18.5 per cent of the same.29 The
term book profit has been defined in the ITA itself. Book profit means
the net profit as shown in the profit and loss account for the relevant
previous year as determined by the provisions of Parts II and III of
Schedule VI to the Companies Act, 1956, with certain positive and
negative adjustments. The objective of making these positive and
negative adjustments with net profit is to ascertain the true and genuine
profit of the company. Under the Companies Act, this profit and loss
account must be maintained as per provisions of the said Act and be
presented before its shareholders at its annual general meeting. As this is
the basis on which investments in the company are made, there is a low
chance of the company manipulating this account to show a lower profit
and making investment in the company less attractive. Certain important
features and controversial provisions of the current MAT regime are
explained below.
MAT UNDER THE DIRECT TAX CODE BILL, 2010
The Direct Tax Code Bill as introduced in the Lok Sabah on August 30,
2010, aims to replace ITA and improve the efficiency and equity of the
direct tax system by eliminating distortions in tax structure, introducing
moderate levels of taxation and expanding the tax base. The numerous
amendments to the ITA and multitude of judgements, often conflicting,
have made the ITA very complicated for the tax payers and the
department. Given that the cost of compliance is essentially regressive
in nature, the equity of the tax system is undermined. The DTC seeks to
move towards a simplified and rational regime for direct taxes. The
provisions relating to MAT are, however, largely similar to those in the
current ITA. The current draft of the DTC Bill provides, inter alia, for
the levy of MAT on companies at the rate of 20 per cent of the book
profits41 ITA, section 115JB (4). Institute of Chartered Accountant of
India, Guidance Note on Accounting for Credit Available in respect of
Minimum Alternative Tax under the Income-Tax Act, 1961,

PROBLEMS WITH THE CURRENT MAT

As discussed above, MAT was first introduced in the ITA in order to
address the problem of zero-tax companies by ensuring that such
companies pay an adequate amount of tax to the government. The
regime has, however, made the ITA more complicated, leading to high
cost of compliance and administration.
A. DIFFICULTIES IN COMPLIANCE OF MAT
As outlined above, the introduction of MAT requires companies to
calculate their taxable income by both the general provision of the ITA
and by the provisions of the Companies Act relating to calculation of
book profits. This increases the costs for record-keeping and compliance
on companies. When the AMT was introduced on companies in the US,
studies showed that firms spent 18 per cent more on compliance costs
where such tax was applicable to them. In India as well, MAT is
identified as a legal hot spot that increases costs of compliance.
THE ECONOMIC BURDEN OF MAT
Another problem with the MAT is that it creates unintended adverse
effects on investment. Some companies that show zero or low tax
liability are highly capital intensive and are able to avail of tax
deductions through depreciation of machinery and goods in the initial
years. These companies make high investments and are crucial to the
economy and in providing employment. These companies also pay high
indirect taxes like customs duty, excise and VAT. Due to the introduction
of MAT, however, these companies are faced with a higher tax burden.
This in turn disincentives high investment in capital goods, which is
crucial for economic growth Moreover, previously under section 115JA,
profits derived by industrial undertakings from the business of
developing, maintaining and operating any infrastructure facility
covered by section 80-IA was exempted from computing book profits.
Under the current section 115JB, however, this exemption has been
removed. Further, companies with low depreciation (like finance
companies) but who are making consistent losses will have to pay MAT
despite heavy carry forward losses. Companies with high depreciation

will be liable for MAT in the year in which there is net profit after
depreciation irrespective of the fact of heavy unabsorbed depreciation.
OTHER DIFFICULTIES IN THE COMPUTATION OF MAT
The co-existence of deemed total income (book profits under the
Companies Act) along with the statutory income calculated under the
ITA, has itself been a source of confusion for the assesses and the
revenue authorities. One such example is with respect to section
80HHC. Section 80HHC provides for the deduction of an amount
equivalent to 80 per cent of the eligible profits from the exports, from
the gross total income. Under section 115JB, however, one of the
deductions that could be made from the book profit was on the eligible
profit from exports as computed under section 80HHC (3) (a)/ (b)/(c)
and under section 80HHC (3A). The dispute that arose was with respect
to the position taken by the revenue authorities, whereby they claimed
that the amount deductible under section 80HHC from the gross income,
should also be the amount that can be deducted from the book profit (as
opposed to the deduction of eligible profit from the book profits). The
dispute was, however, settled by the Supreme Court in Ajanta Pharmacy
Ltd v. CIT, whereby it made distinction between the computation of
eligible profits that could be deducted from the book profits and the
amount of deduction allowed under section 80HHC (which is a certain
percentage of the eligible profits) for the purpose of the gross total
income.
ABOLITION OF MAT AND REDUCTION OF SUBSIDIES AND
INCENTIVES
The problem of zero-tax companies is a result of the reduction in the
tax base of certain companies because of exemptions, deductions and
allowing high rates of depreciation for certain industries. One way to
address this problem is to increase the tax base of companies so that
their taxable income increases. The high rate of depreciation under the
ITA, for instance, is a significant cause for the reduction of tax base.
Depreciation can be claimed by any company irrespective of its output
or location, and hence, covers a greater number of companies than
Special Economic Zones, tax holidays or export promotion measures.

The rate of deprecation under the ITA is much higher than the rate of
depreciation that can be claimed under the Companies Act. The tax base
can be significantly increased if the rate of depreciation is brought on
par with that in the Companies Act. In addition, the number and extent
of deductions and exemptions given to companies should be reduced.
The Kelkar Committee has also recognised this as a problem, and has
suggested that the MAT regime be abolished and the procedure for
taxation be simplified by a reduction in the exemptions and deductions
granted to companies. Similar arguments for reform have been made in
the American AMT system.
A SEPARATE ACT FOR CORPORATE TAXATION BASED ON
BOOK PROFITS
As discussed above, one of the main difficulties with MAT is the
maintenance of two different sets of accounts for determining taxable
income. These two accounts, moreover, must be submitted periodically
for the payment of advance tax as well as at the time of filing final
income tax return. Thus, the corporate taxation regime has become
much more complicated and irrational. The corporate taxation regime
can be simplified and made more rational, either by eliminating MAT
and simplifying the existing ITA with less deductions, incentives and
with broad tax base or to scrap the ITA, as is applicable to companies,
and to have separate legislation for corporate taxation based only on
book profits. This would have the advantage of reducing the confusion
and cost of compliance with MAT and further, streamline the regime of
corporate taxation and bring about convergence of these two systems.
The regime can, however, be modified to allow certain tax incentives in
the form of deductions, exemptions in order to promote a particular
sector of an industry or backward region. This would have the advantage
of being a simpler and more transparent procedure for corporate
taxation.
In conclusion, considering the inflow of foreign direct investment in
India and the growth of domestic companies, both in size and revenue, it
would be more efficient to have a separate legislation on corporate
taxation based on book profits. If, however, there is any need to promote

a particular sector of industry or a backward region, additional negative

adjustment may be provided while calculating book profit.
BASIC PROVISIONS MAT
As per the concept of MAT, the tax liability of a company will be higher
of the following:
1. Tax liability of the company computed as per the normal provisions of
the Income-tax Law, i.e., tax computed on the taxable income of the
company by applying the tax rate Applicable to the company. Tax
computed in above manner can be termed as normal tax
Liability
2. Tax computed @ 18.5% (plus surcharge and cess as applicable) on
book profit. The tax computed by applying 18.5% (plus surcharge and
cess as applicable) on book profit is called MAT.
Note:
MAT is levied at the rate of 9% (plus surcharge and cess as applicable)
in case of a company,
Being a unit of an International Financial Services Centre and deriving
its income solely in Convertible foreign exchange.
Illustration
The taxable income of Eseem Minerals Pvt.Ltd. computed as per the
provisions of Income-tax Act is Rs. 8, 40,000. Book profit of the
company computed as per the provisions of section 115JBis Rs. 18,
40,000. What will be the tax liability of Eseem Minerals Pvt.Ltd. (ignore
cess and surcharge)?
The tax liability of a company will be higher of: (i) Normal tax liability,
or (ii) MAT. Normal tax rate applicable to an Indian company is 30%
(plus cess and surcharge as applicable). Tax@ 30% on Rs. 8, 40,000 will
amount to Rs. 2, 52,000 (plus cess). Book profit of the company is
Rs.18, 40,000. MAT liability (excluding cess and surcharge) @ 18.50%
on Rs.18,40,000 will come to Rs. 3,40,400.Thus, the tax liability of
Eseem Minerals Pvt.Ltd. will be Rs. 3,40,400 (plus cess as
applicable)being higher than the normal tax liability.

Illustration
The taxable income of SM Energy Pvt. Ltd. computed as per the
provisions of Income-tax Act is Rs. 28, 40,000. Book profit of the
company computed as per the provisions of section 115JB is Rs.18,
40,000. What will be the tax liability of SM Energy Pvt.Ltd. (ignore cess
and surcharge)?
The tax liability of a company will be higher of: (i) Normal tax liability,
or (ii) MAT. Normal tax rate applicable to an Indian company is 30%
(plus cess and surcharge as applicable). Tax @ 30%on Rs. 28, 40,000
will amount to Rs. 8, 52,000 (plus cess). Book profit of the company is
Rs.18, 40,000. MAT liability (excluding cess and surcharge) @ 18.50%
on Rs.18,40,000 will come to Rs. 3,40,400.Thus, the tax liability of SM
Energy Pvt.Ltd. will be Rs. 8,52,000 (plus cess as applicable),being
higher than the MAT liability
APPLICBILITY AND NON ABLICBILITY OF MAT
As per section 115JB, every taxpayer being a company is liable to pay
MAT, if the Income tax(including surcharge and cess) payable on the
total income, computed as per the provisions of the Income-tax Act in
respect of any year is less than 18.50% of its book-profit+ surcharge
(SC)+ education cess (EC) + secondary and higher education cess. From
the above it can be observed that the provisions of MAT are applicable
to every company whether public or private and whether Indian or
foreign. However, as per section 115JB (5A) MAT shall not apply to any
income accruing or arising to a company from life insurance business
referred to in section 115B. Further, as per provisions of Section 115V-O
the provisions of MAT will not apply to a shipping income liable to
tonnage taxation, i.e., tonnage taxation scheme as provided in section
115V to 115VZC.
As per Explanation 4 to section 115JB as amended by Finance Act, 2016
with retrospective Effect from 1/4/2001, it is clarified that the MAT
provisions shall not be applicable and shall be deemed never to have
been applicable to an assessed, being a foreign company, if

(i) The assesse is a resident of a country or a specified territory with

which India has an Agreement referred to in sub-section (1) of section
90 or the Central Government has adopted Any agreement under subsection (1) of section 90A and the assesses does not have a
Permanent establishment in India in accordance with the provisions of
such agreement; or
(ii) The assesse is a resident of a country with which India does not have
an agreement of the Nature referred to in clause (i) and the assesse is not
required to seek registration under any Law for the time being in force
relating to the companies.
EXCEPTION OF MAT APPLICIBILITY
Nature of income
1. Income from any
business/services in the hand of
entrepreneur/developer in special
economic zone (SEZs).
2. Income of shipping company
which is subject to the provision
of TONNAGE INCOME OF
CAPITAL XII-G.
3.Income which accrues and arise
to a company from life insurance
referred to in section 115b

Time frame when MAT

provision are not applicable
income arising after March
31,2005 but before April 1,2011

Income arising after March

31,2004 (i.e. assessment year
2005-06 onward)
Income arising after March
31,200 (i.e. assessment year
2001-02 onward)

FOREIGN COMPANY
With effect from the assessment year 2001-02, the provision of MAT are
not applicable to a foreign company in the following two cases-:
The assesse is a resident of a country/specified territory with
which India has an agreement under section 90/90A and assesse
does not have a permanent establishment in India in accordance
with the provisions of such agreement.

 The assesse is resident of a country with which India have does not
any agreement referred to above and assesse is not required to seek
registration under any law for time being not in force relating to
companies.
MEANING OF BOOK PROFIT AND ITS COMPUTATION
As per Explanation 1 to section 115JB(2) "book profit" for the purposes
of section 115JB means net profit as shown in the P & L Account
prepared in accordance with Schedule VI of the Companies Act [now
Schedule III to the Companies Act, 2013] as increased an decreased by
certain items prescribed in this regard. The items to be increased and
decreased are as follows:
Particulars
Amount
Net profit as per Profit & Loss A/c prepared in
accordance with Schedule VI to the Companies XXXXX
Act[now Schedule III to the Companies Act, 2013]
Add : Following items (if they are debited to the P
& L A/c)
Income-tax paid/payable and the provision thereof
XXXXX
Amounts carried to any reserves by whatever name
called (Other than
reserve specified under Section 33AC)

XXXXX

Provisions for unascertained liabilities

XXXXX
Provisions for losses of subsidiary companies
XXXXX
Dividends paid/proposed
XXXXX
Expenditure related to incomes which are exempt
under section 10 [other
than section 10(38)] section 11 and section 12
XXXXX

The amount or amounts of expenditure relatable to,

XXXXX
income, being share
of the taxpayer in the income of an association of
persons or body of
Individuals, on which no income-tax is payable in
accordance with the Provisions of section 86.
The amount or amounts of expenditure relatable to
income accruing or arising to a taxpayer being a
foreign company, from :
(a) the capital gains arising on transactions in
XXXXX
securities; or
(b) the interest, royalty or fees for technical services
chargeable to tax at the rate or rates specified in
Chapter XII if the income-tax payable on above
income is less than the rate of MAT

XXXXX

The amount representing notional loss on transfer of a

capital asset, being share or a special purpose vehicle
to a business trust in exchange of units allotted by that
trust referred to in clause (xvii) of section 47 or the
amount representing notional loss resulting from any XXXXX
change in carrying amount of said units or the amount
of loss on transfer of units referred in clause (xvii) of
section 47
Expenditure relatable to income by way of royalty in
respect of patent chargeable to tax under section
115BBF

XXXXX

Amount of depreciation debited to P & L A/c

XXXXX

Deferred tax and the provision thereof Provision for

XXXXX

diminution in the value of any asset

The amount standing in revaluation reserve relating to

revalue asset on the retirement or disposal of such an
asset if not credited to profit and loss account
XXXXX
The amount of gain on transfer of units referred to in
clause (xvii) of section 47 computed by taking into
account the cost of the shares exchanged with units
referred to in the said clause or the carrying amount of
the shares at the time of exchange where such shares
are carried at a value other than the cost through profit
or loss account, as the case may be;

XXXXX

Less : Following items (if they are credited to the P

& L A/c)
Amount withdrawn from any reserve or provision if
credited to P&L account (**)
Incomes which are exempt under section 10 [other
XXXXX
than section 10(38)]section 11 and section 12
Amount of depreciation debited to P&L account
(excluding the depreciation on revaluation of assets)
XXXXX
Amount withdrawn from revaluation reserve and
credited to P&L account to the extent it does not

exceed the amount of depreciation on revaluation of

assets

XXXXX

The amount of income, being the share of the

taxpayer in the income of an association of persons or
body of individuals, on which no income-tax is
XXXXX
payable in accordance with the provisions of section
86, if any such amount is credited to the profit and
loss account
The amount of income accruing or arising to a
taxpayer being a foreign company, from :
(a) the capital gains arising on transactions in
XXXXX
securities; or
(b) The interest, royalty or fees for technical services
chargeable to tax at the rate or rates specified in
XXXXX
Chapter XII if such income is credited to the profit
and loss account and the income tax payable on above
income is less than the rate of MAT.
The amount (if any, credited to the profit and loss
account ) representing
(a) notional gain on transfer of a capital asset, being
share of a special purpose vehicle to a business trust
in exchange of units allotted by that trust referred to
in clause (xvii) of section 47;
(b) notional gain resulting from any change
in carrying amount of said units; or
(c) gain on transfer of units referred to in clause (xvii)
of section 47,

XXXXX

XXXXX

XXXXX

The amount representation notional gain on transfer

of units referred to in clause (xvii) of section 47
computed by taking into account the cost of the shares
exchanged with units referred to in the said clause or
the carrying amount of the shares at the time of
exchange where such shares are carried at a value
other than the cost through profit or loss account, as
the case may be;

Income by way of royalty in respect of patent

chargeable to tax under section 115BBF Amount of
brought forward loss unabsorbed depreciation,
whichever is less as per books of account
Profits of a sick industrial company till its net worth
becomes zero/positive

XXXXX

XXXXX

XXXXX

Deferred tax, if credited to P&L account

XXXXX

BOOK PROFIT to be used to compute MAT

XXXXX

COMPUTATION OF MAT- As per Section 115JB

A numerical illustration:-

ABC Ltd. had its computed total income at Rs.100 lakhs and
its book profit as Computed under section 115JB is Rs.600
lakhs. In such an event, the following would be the calculation
of MAT tax liability under section 115JB for assessment year
2010-2011 as discussed above-

PARTICULAR
Total Income or Book
Profit
Tax Liability 30%
Add Surcharge 7%
Sub Total-----Add. Edu. Cess & S& H
Edu. Cess @ 3%
Total Tax
Income Tax Payable by
Assesses

AS PER NORMAL AS PER

PROVISION OF IT SECTION 115JB
(MAT)
Rs. 10,00,000
Rs. 60,00,000

Rs. 2,10,000
Rs. 32,10,000
Rs. 96,300

RS. 18,00,000
Rs. 1,26,000
Rs. 19,26,000
Rs. 57,780

Rs. 33,06,300
Rs.33,06,300

Rs.19,83,780
Rs.19,83,780

Rs. 30,00,000

Note-: Tax pay by the assesse is Rs.33, 06,300 lakhs subjected

to MAT.
The amount of Income-tax shall include:
i. Any tax on distributed profits under section 115-O (dividend
distribution tax - i.e., DDT) or tax on distributed income under section
115R;
ii. Any interest charged under this Act;
iii. Surcharge, if any, as levied by the Central Acts from time-to-time;
Iv. Education Cess on Income-tax, if any, as levied by the Central Acts
from time-to-time;

v. Secondary and Higher Education Cess on Income-tax, if any, as levied

by the Central Acts from time-to-time. (**) Withdrawals made from
reserves created or provisions made on or after the 1-4-1997, shall be
deducted only if the book profit of the year of creation of such reserve
has been increased by the amount transferred to such reserve or
provisions (out of which the said amount was withdrawn).For example,
Governmental grants relating to depreciable assets are credited to
special reserve (i.e., not to P&L account) in the year of receipt and a
portion of such grant is transferred from that reserve to P&L account
over the life of the asset in proportion to depreciation charged. In the
year in which these grants were credited to special reserve, they had not
been added to net profit for calculation of book profit subjected to MAT.
Therefore, in the year of transfer to P&L the amounts so transferred
shall not be reduced from net profit while calculating book profit for the
purpose of MAT.
MAT CREDIT
MAT credit is a beneficial provision for companies based on principles
equity. In a given assessing year, when a company pays tax under the
MAT provisions as opposed to the general provisions of the ITA, the
excess of tax so paid over and above the tax payable under the general
provisions of the Act, accrues as tax credit to the company. Thus, MAT
credit is the difference between the tax calculated under the provisions
of MAT and the tax calculated under the general provisions of the ITA
(i.e., normal tax liability). Such credit is allowed to be carried forward
and set-off against the income tax liability in an assessment year in
which the company is liable to pay tax under the general provisions of
the ITA (and not under the MAT provisions), to the extent of such tax
payable over and above the book profits in that assessment year. MAT
credit can be carried forward and set-off for ten assessment years
immediately succeeding the assessment year in which the tax credit was
first computed. Thus, companies must always calculate their normal tax
liability and their liability under the MAT and pay whichever is higher.
If, however, the company pays MAT in an assessment year, then it can
avail of credit over and above normal tax liability. This means that in no
year will the company pay tax less than the MAT tax rate. The table

below shows how MAT credits accrue to companies and how they may
be set-off:

ASSESSEMENT
YEARS

TAX UNDER
NORMAL
PROVISIONS
OF IT.

TAX UNDER
MAT SECTION
115JB

TAX
PAYBLE BY MAT
COMPANY
CREDIT

20010-11

100

120

120

2011-12
2012-13
2013-14

150
200
300

160
190
200

160
190
280

MAT
CREDIT
SET-OFF

MAT
CREDIT
CARYY
FORWARD

20

20

10
-

10
20

20+10=30
10+10=20
-

MAT CREDIT- PRATICAL ANALYSIS

Illustration

The tax liability of Eseem Minerals Ltd. for the financial year 2016-17
under the normal Provisions of the Income-tax Act is Rs.8, 40,000 and
the liability as per the provisions of MAT is Rs.10, 00,000.Will the
company be entitled to claim any MAT credit in the subsequent year(s)
as per the provisions of section 115JAA? A company paying MAT is
entitled to claim the credit of MAT paid in excess of normal tax liability.
In this case the liability of Eseem Minerals Ltd. for the year 2016-17
under the normal provisions is Rs. 8,40,000 and as per the provisions of
section 115JB it is Rs. 10,00,000 (which is higher than normal tax
liability) and, hence, the company has to pay Rs. 10,00,000, i.e., liability
as per MAT provisions. As per section 115JAA, if in any year a
company pays its tax liability as per MAT, then it can Claim MAT credit
being the excess MAT paid over the normal tax liability. In this case, as
the liability of MAT is higher, and, hence, the company will be entitled
to claim MAT credit of Rs.1, 60,000 (being excess of MAT over normal
tax liability of Rs8, 40,000).
ADJUSTMENT OF CARRIED FORWARD MAT

As discussed earlier, a company is entitled to claim MAT credit i.e.

excess of MAT paid over the normal tax liability. The credit of MAT can
be utilised by the company in the subsequent year(s).The credit can be
adjusted in the year in which the liability of the company as per the
normal provisions is more than the MAT liability. The set off in respect
of brought forward MAT credit shall be allowed in the subsequent
year(s) to the extent of the difference between the tax on its total income
as per the normal provisions and as per the MAT provisions.
Illustration
The tax liability of Eseem Energy Ltd. for the financial year 2016-17
under the normal Provisions of the Income-tax Act are Rs. 18, 40,000
and the liability as per the provisions of MAT is Rs. 18, 00,000. It has
brought forward MAT credit of Rs. 2, 00,000. Can the company adjust
the MAT credit? If, yes then how much and what will be the tax liability
of the company after adjustment of MAT credit? MAT credit can be
adjusted in the year in which the liability of the company as per the
normal provisions is more than the MAT liability. In this case the
liability as per the normal provisions of the Income-tax Act is Rs. 18,
40,000 and the liability as per the provisions of MAT is Rs.18, 00,000.
Liability as per the normal provisions is more than liability as per the
provisions of MAT and, hence, the company can adjust the MAT credit.
The set off in respect of brought forward MAT credit shall be allowed in
the subsequent year(s) to the extent of the difference between the tax on
total income as per the normal provisions and liability as per the MAT
provisions. Thus, after set off of MAT credit, the liability of the
company cannot be less than liability as per the provisions of MAT. In
this case, the liability as per MAT is Rs. 18, 00,000, and, hence, after
claiming set off of the MAT credit, the liability of company cannot be
less than Rs. 18, 00,000. Hence, out of the credit of Rs. 2, 00,000 the
company can claim credit of Rs. 40,000 only and the balance credit of
Rs. 1, 60,000 can be carried forward to next year(s)
.
PERIOD WHICH MAT CREDIT CARRIED FORWARD

As discussed earlier, the company can carry forward the MAT credit for
adjustment in Subsequent year(s), however, the MAT credit can be
carried forward only for a period of 10 Years after which it will lapse. In
other words, if MAT credit cannot be utilised by the company within a
period of 10 years (immediately succeeding the assessment year in
which such credit was generated), then such credit will lapse. No
interest is paid to the taxpayer in respect of such credit.
ADVANCE PAYMENT OF TAX
Under the ITA, every assesse is required to pay an advance tax on their
income (i.e., current income) if advance tax liability as computed in
accordance with the provisions of Chapter XVII of the ITA, is Rs.10,000
or more during the financial year. One of the interpretational quandaries
that have arisen with respect to section 115JB is whether companies that
pay MAT are liable to pay advance tax. Companies that make default in
the payment of advance tax are subject to penalties under section 234B
and 234C of the ITA.
PROCEDURE OF INCOME TAX RETURNS
Every company to which MAT is applicable is required to furnish a
report in the prescribed form (Form 29B) from an accountant as defined
in the Explanation to section 288, certifying that the book profits have
been calculated in accordance with the provisions of MAT along with
the return of income filed under section 139(1) or along with the return
of income pursuant to a notice send under section 142(1)(i).41
Accounting treatment of MAT is done according to the Guidance Note
of Credit under MAT under the Income Tax Act42 issued by the
Institute of Chartered Accountant of India (ICAI).
NON-APPLICABILITY OF MAT
The provisions of section 115JB initially did not apply to income from
any business carried on in or any services rendered by a company in a
Special Economic Zone.43 section 115JB (6) was, however, amended by
the Finance Act, 2011 and a proviso was added making the provisions of

section 115JB applicable even to Special Economic Zones with effect

from April 1, 2012. Thus, even the Special Economic Zones which were
enjoying immunity from MAT so far have been subjected to MAT from
2012.
REPORT FROM CHARTERED ACCOUNTANT
Every company to whom the provisions of section 115JB applies is
required to obtain a report from a chartered accountant in Form No. 29B
certifying that the book profit has been computed in accordance with the
provisions of section 115JB. The report should be obtained on or before
due date of filing the return of income. Audit report in Form No. 29B
shall be filed electronically. And submitted to the tax authority of
Central Board Direct Tax (CBDT) according to the all the compliance is
fulfilled.
Illustration Calculating Corporate Tax liability as per Normal Tax
Provision and MAT.
Amit ltd a domestic company provides the following profit & loss
account for computation of tax liability for the assessment year 2016-17
from general tax provision and as per MAT.
PARTICULAR
To Opening Stock
To Purchase
To Wages
To Gross Profit c/d

AMOUNT PARTICULAR
40,000
By Sales
21,35,000 By Closing Stock
8,10,000
46,15,000

To Salaries
To General Expenses

76,00,000
5,00,000
5,00,000

To M.D Remuneration

5,00,000

To Director
Fees

Sitting 50,000

AMOUNT
75,00,000
1,00,000

76,00,000
By Gross Profit b/d 46,15,000
By Dividend from 5,000
Indian company
By
Bad
Debt 2,000
Recovered

To Income Tax
To Excise Penalty
To Provision from loss
from Subsidiaries
To Proposed Dividend
To Depreciation
To Excise Duty

3,00,000
1,10,000
3,00,000

To Net Profit

17,27,000
46,22,000

4,00,000
1,50,000
1,75,000
46,22,000

Additional Information1. General Expense Includes

A. Diwali Poojan Expense Rs. 10,000
B. Donation to Mata Devi Shrine Board Rs. 20,000
C. Sales Expense by way of 100 gift pack dealers involving an
expenditures of Rs. 50,000
2. Both Opening and Closing Stock have been undervalued by 20%.
3. Excise duty related to previous year 2014-15 Rs. 10,000 paid
during the year.
4. Bad Debts recovered during the year related to previous year
2015-16 and were claimed as deduction in the same period.
5. Brought forward Business Loss and Unabsorbed Depreciation are
as followPARTICULAR
AS PER BOOK AS PER TAX PURPOSES
Brought
forward 3,00,000
1,50,000
business loss
Unabsorbed
2,00,000
1,00,000
Depreciation
SOLUTION- Calculation of Tax Liability as Per Normal Tax Provision
PARTICULAR
Net Profit as per P/L a/c
Add- Disallowed Expense already Debit to

DETAILS AMOUN
T
17,27,000

P/L
Income Tax
Excise Penalty
Provision for losses from subsidiaries
Proposed Dividend
Deduction
Undervalued of Closing Stock
Less- Expenses allowed
Dividend from Indian Company
Brought Forward Business Loss
Under value of Opening Stock
Unabsorbed Depreciation
GROSS TOTAL INCOME
Less- Statutory Deduction
Donation to Mata Devi Shrine Board u/s
80G
Tax @ 30%
Add- SHEC @3%
TAXBLE LIABILITY

3,00,000
1,10,000
3,00,000
4,00,000
20,000
25,000
5,00
3,00,000
10,000
2,00,000
10,000

11,55,000
28,82,000

5,15,000
23,67,000
10,000
23,57,000
7,07,100
21,213
7,28,313
or
7,28,310

Calculation of Tax Liability as Per MAT U/S 115JB

PARTICULAR
DETAILS AMOUN
T
Net Profit as per P/L a/c
17,27,000
Add- Statutory Provision not allowed
Income Tax
3,00,000
Proposed Dividend
3,00,000
Depreciation
4,00,000
Provision for losses from subsidiaries
1,50,000
11,50,000
GROSS TOTAL INCOME
28,77,000
Less- Statutory Deduction allowed
Exempted income (Dividend from Indian 5,000

company)
Business loss brought forward
Current year Depreciation
Book Profit
18.5% of Book Profit
Add- SHEC @3%
TAXBLE LIABILTY

1,00,000
1,50,000

2,55,000
26,22,000
4,85,070
14,552
4,99,620

DECISION CRETERIA-:
TAXABLE INCOME AS PER
NORMAL PROVISIONS OF TAX
Taxable liabilities under normal tax
provision are RS.7, 28,310.

TAXABLE LIABILIY AS PER

BOOK PROFIT (MAT)
Taxable liabilities under book
profit (MAT) provisions are
calculated as RS.4, 99,620.

So, the taxable liability of the company is RS.7, 28,310 subjected to

MAT provisions are paid by the firm that clearly shows that impact of
MAT provisions on the taxable liability of the firm.
Illustration
ABC Ltd is engaged in the manufacturing of garments: There Profit &
Loss account as followsPARTICULAR
Sales proceeds of goods (Domestic sales)
Sales proceeds of goods (Export sale)
Amount withdraw from General Reserve
Amount withdraw from Revaluation Reserves
Total
Less: Expense
Depreciation (Normal)
Depreciation (Extra depreciation because of revaluation)
Salary and Wages
Income Tax
Sales Tax

AMOUNT
22,33,000
5,76,100
4,00,000
2,50,000
34,50,000
6,16,000
2,70,000
2,10,000
3,60,000
3,00,000

Outstanding custom duty

Proposed Dividend
Consultation fees paid to tax expert
Other Expense
Net Profit

17,500
60,000
21,000
1,39,000
14,56,500

For tax purpose the company wants to claim the following-:

Deduction under Section 80-IB (30% of Rs. 14, 56,000)
Depreciation under Section 32 (Rs. 5, 36,000)
The company want to set off the following losses/ allowances:
PARTICULAR
NORMAL PROVISION
Brought forward business loss
14,80,000
of 2007-08
Unabsorbed Depreciation
-

FOR MAT
4,00,000
70,000

Compute the net income and tax liability of X Ltd. For the assessment
year 2016-17 assuming that X Ltd. Gets long term capital gain of Rs.
60,000 under section 54D(2) which is not credit to Profit & Loss
account.
SOLUTION- Calculation of Tax Liability as Per Normal Tax ProvisionPARTICULAR
Net Profit as per Profit & Loss A/C
Add- Disallowed Expense already Debit
to P/L
Depreciation(6,16,000+2,70,0005,36,000)
Income Tax
Custom Duty not paid
Proposed Dividend
TOTAL
Less- Income credit to P/L A/C
Amount withdraw from reserves
-General reserve

DETAILS

AMOUNT
14,56,500

3,50,000
3,60,000
17,500
60,000

4,00,000

7,87,500
22,44,000

-Revaluation reserve
Unabsorbed Business Loss
BUSINESS INCOME
Less- Deduction U/S 80-IB 30% of BI
NET INCOME
Add- Capital Gain
TAXABLE INCOME
Tax @30% (79,800*30%+60,000*20%)
Add- SHEC @3%
TAXABLE LIBILITY

2,50,000
14,80,000

Now, Calculation of Tax Liability as per MAT

PARTICULAR
DETAILS
Net Profit as per Profit & Loss A/C
Add- Statutory provision not allowed
Income Tax
3,50,000
Proposed Dividend
60,000
Depreciation (6,16,000+2,70,00)
8,86,000
TOTAL
Less- Statutory Deduction allowed
Amount withdraw from reserves
-General reserve
4,00,000
-Revaluation reserve
2,50,000
Depreciation
6,16,000
Unabsorbed Depreciation
70,000
BUSINESS INCOME
Tax @30%
Add- SHEC @3%
TAXBLE LIABILITY

21,30,000
1,14,000
34,200
79,800
60,000
1,39,800
35,940
1,078
37,018
AMOUNT
14,56,500

27,52,500

13,36,000
14,16,500
42,49,50
12,748
4,37,698

DECISION CRETERIA-:
TAXABLE INCOME AS PER
NORMAL PROVISIONS OF TAX
Taxable liability in this case are
RS.37,018

TAXABLE LIABILIY AS PER

BOOK PROFIT (MAT)
Taxable liability under book
profit come as RS.4,37,698

So, the taxable liability of the firm are 4, 37,698 subjected to MAT
provisions. Company can now pay higher amount just because of MAT
provisions and that show how the company earn higher profit and
paying low amount of tax to the CBDT.

INTRO
DUCTI
INDIA
ONN

IT industry in India has played a key role in

putting India on the global map. IT industry in
India has been one of the most significant
growth contributors for the Indian economy. The
industry has played a significant role in
transforming Indias image from a slow moving
bureaucratic economy to a land of innovative entrepreneurs
and a global player in providing world class technology
solutions and business services. The industry has helped India transform
from a rural and agriculture-based economy to a knowledge based
economy. Information Technology has made possible information access
at gigabit speeds. It has made tremendous impact on the lives of millions
of people who are poor, marginalized and living in rural and far flung
topographies. Internet has made revolutionary changes with possibilities
of e-government measures like e-health, e-education, e-agriculture, etc.
Today, whether its filing Income Tax returns or applying for passports
online or railway e-ticketing, it just need few clicks of the mouse.
Indias IT potential is on a steady march towards global competitiveness,
improving defence capabilities and meeting up energy and
environmental challenges amongst others.

INFOR

IT-ITeS sector in India, with the main focus on increasing technology

adoption, and developing new delivery platforms, has aggregated
revenues of USD 88.1 billion in FY2011, while generating direct
employment for over 2.5 million people. Out of 88.1 billion, export
revenues (including Hardware) has reached USD 59.4 billion in FY2011

while domestic revenues (including Hardware) of about USD 28.8

billion.

GOVERNMENT INITITIVES
After the economic reforms of 1991-92, major fiscal incentives provided
by the Government of India and the State Governments, like,
liberalization of external trade, elimination of duties on imports of
information technology products, relaxation of controls on both inward
and outward investments and foreign exchange, setting up of Export
Oriented Units (EOU), Software Technology Parks (STP), and Special
Economic Zones (SEZ), has enabled India to flourish and acquire a
dominant position in worlds IT scenario. In order to alleviate and to
promote Indian IT industry, the Government of India had set up a
National Task Force on IT and Software Development to examine the
feasibility of strengthening the industry. Venture capital has been the
main source of finance for software industry around the world. In line
with the international practices, norms for the operations of venture
capital funds have also been liberalized to boost the industry. The
Government of India is also actively providing fiscal incentives and
liberalizing norms for FDI and raising capital abroad.
FINANCIAL ASSISTANCE

While the underlying theme of 2010 was that of steady recovery from
recession, thanks to the accelerated recovery in emerging markets,
worldwide spending in IT products and services increased significantly
in 2011. In 2011, Indias growth has reflected new demand for IT goods
and services, with a major surge in the use of private and public cloud
and mobile computing on a variety of devices and through a range of
new software applications. High inflow of FDI in the IT sector is
expected to continue in coming years. The inflow of huge volumes of
FDI in the IT industry of India has not only boosted the industry but the
entire Indian economy in recent years. Foreign direct investment (FDI)
inflow rose by more than 100 per cent to US$ 4.66 billion in May 2011,
up from US$ 2.21 billion a year ago, according to the latest data
released by the Department of Industrial Policy and Promotion (DIPP).
This is the highest monthly inflow in 39 months. Foreign technology
induction is also encouraged both through FDI and through foreign
technology collaboration agreements. India welcomes investors in
Information Technology sector. Greater transparency in policies and
procedures has made India an investor friendly platform. A foreign
company can hold equity in Indian companys up to 100%.
RESEARCH AND DEVELOPMENT
To support Research & development in the country and promoting Startups focussed on technology and innovation, a weighted deduction of
150% of expenditure incurred on in-house R&D is introduced under the
Income Tax Ac. In addition to the existing scheme for funding various
R&D projects have been funded through new scheme like Support
International Patent Protection in Electronics & IT (SIP-EIT), Multiplier
Grants Scheme (MGS).The government has initiated the setting up of an
Open Technology Centre through NIC aimed at giving effective
direction to the country on Open Technology in the areas of Open
Source Solutions, (OSS), Open Standard, Open Processes, Open
Hardware specifications and Open Course-ware. This initiative will act
as a National Knowledge facility providing synergy to the overall
components of Open Technology globally.
REGULATION

After the economic reforms of 1991-92, liberalization of external trade,

elimination of duties on imports of information technology products,
relaxation of controls on both inward and outward investments and
foreign exchange and the fiscal measures taken by the Government of
India and the individual State Governments specifically for IT and ITES
have been major contributory factors for the sector to flourish in India
and for the country to be able to acquire a dominant position in offshore
services in the world. The major fiscal incentives provided by the
Government of India have been for the Export Oriented Units (EOU),
Software Technology Parks (STP), and Special Economic Zones (SEZ).
FUTURE PROSPECTS-: AND ITS ROLE IN DEVELOPMENT
Globalization has had a profound impact in shaping the Indian
Information Technology industry. Over the years, verticals like
manufacturing, telecom, insurance, banking, finance and lately the
retail, have been the growth drivers for this sector. But it is very fast
getting clear that the future growth of IT and IT enabled services will be
fuelled by the verticals of climate change, mobile applications,
healthcare, energy efficiency and sustainable energy. The near future of
Indian IT industry sees a significant rise in share of technology spend as
more and more service providers both Indian and global target new
segments and provide low cost, flexible solutions to customers. By
2015, IT sector is expected to generate revenues of USD 130 billion
(NASSCOM) which will create a transformational impact on the overall
economy. IT spending is expected to significantly increase in verticals
like automotive and healthcare while the government, with its focus on
e-governance, will continue to be a major spender. However, to achieve
this growth, the sector has to continue to re-invent itself and strive for
that extra mile, through new business models, global delivery,
partnerships and transformation. A collaborative effort from all
stakeholders will be needed to ensure future growth of Indias IT-ITeS
sector. We will need to rise up to the new challenges and put in
dedicated efforts toward providing more and more of end-to-end
solutions to the clients to keep the momentum going.

RESEARCH METHDOLOGY

The selection of the popular research approach depends upon on the

kind of information required. Qualitative research collects, analysis, and
interprets data that cannot be meaningfully quantified, that is
summarized in the form of numbers. For this reason qualitative research
is sometime referred to as a SOFT RESEARCH. QUALITITIVE
RESEARCH calls for very specific data, capable of suggesting a final
course of action. A primary role of quantitative research is to test
hypotheses. These suggest that qualitative approach is a soft research in
which collected data cannot be meaningfully qualified and more
importantly in this approach no structured research is conducted, but so
far as quantitative research approach is concerned, through this approach
structured research is conducted with approaching larger respondents
and the collected data can be meaningfully quantified.
TYPE OF RESAERACH DATA

The research data can be collected either by primary sources or

secondary sources or both. Secondary data usually factual information
can be obtained through secondary data that has already been collected
form of source and is readily available from those sources. The
definition and characteristic of secondary data suggest us that secondary
data are data that have been collected for the purpose other than the
problem than the problem in the hand. Before dealing as how and what
secondary data were collected in this project worth to be examine the
advantage and disadvantage of such data. Secondary data are easily
accessible, relatively inexpensive, and quickly obtained. Some
secondary data are available on topics where it would not be feasible for
an industry to collect primary data. Although it is rare for secondary data
to provide all the answer to a non- routing research problem, such data
can be useful in variety of ways.
Primary data is collected for the specific purpose of addressing the
problem at the hand. The collection of primary data involves various
steps. Thus obtaining primary data can be expensive and time
consuming. These suggest that primary data are those data that are
collected for particular purpose of research in hand.

The disadvantage of collecting primary data is that it is lengthy and

resource and time consuming process, but the advantage of primary data
is that they are first-hand information and comparatively more reliable.
A researcher originates primary data for the specific purpose of
addressing the problem at hand. The collection of primary data involves
six steps of the competition analysis process. Obtaining primary data
can be expensive and time consuming.
1. TITLE OF THE PROJECTCOMPARITIVE ANALYSIS OF IMPLIMENTAION OF MAT IN
IT SECTORS.
In this project the Comparative analysis of calculating Tax Liabilities of
the Firm in respect of Normal Tax Provision and Minimum Alternative
Tax and finding the impact of both procedure and know which firm
follow the Minimum Alternative Tax are done.

STATEMENT OF PROBLEM:
In this project I am going to find out the tax liability of the company
from two different aspects and find the method is best for calculating the
tax liability and what was the impact over company.

PURPOSE OF THE STUDY:

The purpose of the project is identifying the impact of MAT on IT sector
that how its reduces the corporate tax liability and its burden on the
business.

OBJECTIVE OF THE STUDY.

The objective of this project is identifying the Minimum Alternative Tax
Impact on Information & Technology Sector with reference to analysis
of their financial records. And finding which option is better to adopt
while calculating the Tax Liability of the industry. Objective can be

primary as well as secondary so as in this research also there are primary

as well as secondary objectives are included.
PRIMARY OBJECTIVE-: The Primary objective of this
research is comparison of the calculating firm Tax Liabilities as
per-:
1. General provision of Tax
2. Minimum Alternative Tax Under Section 115JB
SECONDRY OBJECTIVE-: The Secondary objective of the
project is to find out the impact of both Method on the firm Tax
Liabilities and there settlement.
SCOPE OF THE STUDY-:
By doing this research work we will be able to know about the Indian
Minimum Alternative Tax Provision upon Indian Information &
Technology Sector and know about which firm can follow this provision
for minimising the tax liabilities of the firm and its impact.

SIGNIFICANCE OF THE INDUSTRY

Information & Technology sector is very growing sector and
have significant growth in future. IT Sector has wide range of
the industries like software, technology, hardware,
communication devices and broadband services etc.
RESEARCH DESIGN
A Research design is the arrangement of condition for
collection and analysis of data in a manner that aims to combine
relevance to the research purpose with economy in procedure.
In fact, the research design is the conceptual structure within
which research is conducted; it constitutes the blue print for the
collection, measurement and analysis of data. As such the design
includes an outline of what the researcher will do from writing

the hypothesis and its operational implication to the final

analysis of data.
PROBABILITY SAMPLING
A probability sampling schemes is one in which every unit in
the population has a chances of being selected in the sample and
this probability can be accurately determined. The combination
of these traits makes it possible to produce unbiased estimates of
population totals by weighting sampled units according to their
probability of selection.
TYPE OF PROBABILITY SAMPLING
Probability sampling includes:- the following

CLUSTER

SIMPLE
RANDOM
SAMPLING

SYSTEMATI
C
SAMPLING

STARATIFIE
D
SAPMPLIN

MULTISTAG
E
SAMPLING

PROBABILIT
Y
PROPRTION
AL TO SIZE

These various ways of probability sampling have to things in

common -:
Every element has an equal chances to be sampled and
Involves random selection at same point.
1. SIMPLE RANDOM SAMPLING

In a simple random sampling of a giving size, all such

subsets of the frame are given an equal probability. Each
element of the frame thus has an equal probability of
selection the frames is not subdivided or partitioned. In
particular, the variance between individual results within
the sample is good indicator of variance in the overall
population which makes it relatively easy to estimate the
accuracy of results.
2. SYSTEMATIC SAMPLING
Systematic sampling relies on arranging the target
population according to some ordering scheme and then
selecting elements at regular interval through that ordered
list. Systematic sampling involves a random start and then
proceeds with the selection of every nth element from the
onwards. In this nth is the size of the population.
3. STRATIFIED SAMPLING
Where the population embrace a number of distinct
categories, the frame can be organized by these categorised
into separate strata each stratum is then sampled as an
independent sub-population, out of which individual
elements can be randomly selected. In this first dividing the
total population into distinct, independent strata than
utilising a stratified sampling method can lead to more
efficient statistical estimates for example employed the
method that are relevant to the data and convenient to the
researcher then analysis this groups to its relevance and
lastly finding the conclusion.

4. PROBABILITY PROPORTIONAL TO SIZE

In this case the sample of designer has access to a size
measures believed to correct to the variable of interest, for
each element in the population. This can be used to
improve accuracy in sample design. One option is to use
the size measures as a basis for stratification. Another
option is probability proportion to size sampling, in which
the selection probability for each element is set to be
proportionately to its size measures, up to a maximum of 1.
In simple PPS design, these selection probabilities can then
be used as the basis for Poisson sampling.
5. CLUSTER SAMPLING
Sometimes it is cheaper to cluster sampling in some way
e.g. by selecting respondents from certain areas only, or
certain time period only. Cluster sampling is an example of
two-stage sampling or multi-stage sampling, in the first
stage a sample of areas is selected, in second stage a
sample of respondents within those areas is selected. This
can reduce travel and other administrative cost. It also
means that one does not need a sampling frame listing all
elements in the target population. Instead cluster can be
chosen from cluster level frame with an elements-level
frame created only for the selected clusters.
6. MULTISTAGE SAMPLING
Multistage sampling is a complex form of cluster sampling
in which two or more levels of units are imbedded one in
the other. The first stage consists of constructing the
clusters that will be used to sample from. In the second
stage, a sample of primary units is randomly selected from

each other clusters. In following stages, in each of those

selected clusters, additional samples of units are selected,
and so on. All ultimate units selected at the last step of this
procedure and then surveyed.
NON PROBABILITY SAMPLING
It is any sampling method where some elements of the
population have no chance of selecting, or where the probability
of selection cant be accurately determined. It involves the
selection of elements based on assumption regarding the
population of interest, which forms the criteria for selection.
Hence because the selection of elements is non-random, nonprobability sampling does not allow the estimation of sampling
error. These condition place limits on how much information a
sample can provide about the population.
TYPES OF NON PROBABILITY SAMPLING
Non probability sampling includes-:
Quota Sampling
Judgment sampling or purposive sampling
Convenience sampling
1. QUOTA SAMPLING
In quota sampling the population is first segmented into
exclusive sub-groups, just as in stratified sampling. Then
judgement is used to select the subject or units from each
segments based on a specified proportion. For example, an
interviewer may be told to sample 200 females and 300 b
males between the age of 45 and 60. In the second step
which makes the technique one of non-probability

sampling. In quota sampling the selection of the sample is

non-random. In the above example interviewer might be
tempted to interview those who look most helpful.
2. JUDGEMENT
SAMPLING

SAMPLING

OR

PURPOSIVE

The researcher chooses the sample based on why they

think would be appropriate for the study. This is used
primarily when there are a limited number of people that
have expertise in the particular area.
3. CONVENIENCE SAMPLING
Convenience sampling is a type of non-probability
sampling which involves the sample design being drawn
from that part of the population which is close to hand.
That is, a sample population selected because it is
readily available and convenient. That is, a sample
population selected because it is readily available and
convenient. The researcher using a sample cannot
scientifically make generalisation about the total
population from this sample because it would not be
representative enough. For example, if a interviewer was
to conduct such a survey at a shopping centre early in the
morning on a given day, the people that he/she could
interview would be limited to those given their time,
which would not represent the views of other members
of society in such an area if they are surveys was to be
conducted at different times and days or week etc.
RESEARCH DESIGN

Research Design consists of three parts:o Exploratory Research

o Descriptive Research
o Experimental Research
EXPLORATORY
An exploratory research focuses on the discovery of idea and
is generally based on secondary data. It is preliminary
investigation that does not have a rigid design. This is because a
researcher engaged in an exploratory study that may have to
change his focus as a result of new ideas and relationships
among the variables.
DESCRIPTIVE RESEARCH
A descriptive research is undertaken when the researcher wants
to know the characteristic of certain groups in terms of age, sex,
education level, income level, and occupation etc.
EXPERIMENTAL RESEARCH
An experimental research is undertaken when the researcher is
interested in knowing the cause and
effects relationship
between two or more variables. Such studies are based on
reasoning along well tested lines.
Type of project: This project is based on the Exploratory
Research Method.
Size of Sample: Top 10 Indian IT Company of India.

Tools used to collect data:

1. Primary Data- Primary data are also known as first hand
data because its collected at first time by the researcher for
their research purpose. In this project I collect some financial
records by visiting the company and know about their work
culture and there overall financial history. And also collect
data by SEBI office also.
2. Secondary Data- Secondary data are those data that are
already collected by someone else and which have already
been passed through the statistical process. In this project I
take into consideration the different company website to
collect there company profile and there financial records for
analysis the impact of New MAT provision on their yearly
tax liability and there profitability etc.
Statistical methods used: Bar Charts, Tables, Graphs etc.
LIST OF IMPORTANT IT COMPANIES- IN INDIA

1.WIPRO

3.TECH
MAHINDER
A

2.HCL

4.INFOSYS

5.TCL

6.ITC INFO
TECH

7.CISCO

8.L & T

9.ORACLE

10.CYIENT

TOP IT
SECTO
R OF
INDIA

1.WIPRO LIMITED COMPANY

WIPRO LIMITED-: is a global leader in

providing IT Services, Outsourced R&D,
Infrastructure Services, Business Process
Services and Business Consulting With a track
record of over 25 years, Wipro is the first to
perfect a unique quality methodology, the Wipro
Way a combination of Six Sigma, Lean
Manufacturing, Kaizen and CM practices to provide unmatched
business value and predictability to our clients. Our industry align
customer facing business model gives us a deep understanding of
customers need to build domain specific solutions, while our 55+
dedicated emerging technologies Centres of Excellence enables us to
harness the latest technology for delivering superior business results to
our clients. We have a workforce of over 140,000 serving Over 950

clients, including a number of Fortune 500 and Global 500 corporations

across 57 countries. We began our business as a vegetable oil
manufacturer in 1945 at Amalner, a small town in Western India and
thereafter, expanded into the manufacture of soaps and other consumer
care products. During the early 1980s, we entered the Indian IT industry
by manufacturing and selling mini computers. We began selling
personal computers in India in 1985.In the 1990s, we leveraged our
hardware R&D design and software development expertise and began
offering software Services to global clients. We are one of the pioneers
of the offshore development centre (ODC) model that propelled the
growth of the Indian IT Services business to a global scale. Effective
March 31, 2013, we demerged the Diversified Business to create an
organization focused purely on Information Technology.
VALUES OF THE COMPANY

At the core of Wipro is the spirit of Wipro. They encapsulates the

value which are the guiding principal our company culture and
behaviour in Wipro. They bring us together and inspire us to achieve
excellence in whatever we do.
SPIRITE OF WIPRO IDENTIFIES THREE CORE VALUES
1. INTENSITY TO WIN

Make customer successful

Team, innovate, excel

2. ACT WIH SENSIVITY

Respect for the individual

Thought full and responsible
3. UNYIELDING INTEGRITY

Delivering on commitments
Honesty and fairness in action
TYPES OF BUSINESS

Wipro Limited is a global company provider of comprehensive IT

solutions and services, including Systems Integration, Consulting,
Information Systems outsourcing, IT-enabled services, R&D services.
Wipro entered into the technology business in 1981and has over 140,000
employees and clients across 54countries. IT revenues were at $7.1
billion for the year ended 31 March 2015, with a repeat business ratio of
over 95%.
1. Wipro Consumer Care & Lighting
Wipro Consumer Care and Lighting (WCCLG), a business unit of Wipro
Limited operates in the FMCG segment dealing in consumable
commodities. Established in 1945, its first product was vegetable oil,
later sold under the brand name Sunflower Vanaspati. It sells personal
care products, such as Wipro Baby Soft and Wipro Safe wash, toilet
soaps Santoor and Chandrika as well as Yardley. It sells lighting
products, including SmartliteCFL, LED, and emergency lights. Through
product sales and acquisitions, Wipro Consumer Care and Lighting has
grown steadily in the FMCG segment.
2. Wipro Infrastructure Engineering
Wipro Infrastructure Engineering is the hydraulics business division of
Wipro Limited and has been in the business of manufacturing hydraulic
cylinders, truck cylinders, and their components and solutions since
1976.This division delivers hydraulic cylinders to international OEMs
and represents the Kawasaki, Sun Hydraulics and Teijin Seiki range of
hydraulic products in India. It has entered into partnerships Kawasaki
and aerospace giant EADS. In 2010 Wipro Infrastructure Engineering
was the second largest independent manufacturer of hydraulic cylinders
in the world.
3. Wipro GE Medical Systems
Wipro GE Medical Systems Limited is Wipros joint venture with GE
Healthcare South Asia. It is engaged in the research and development of
advanced solutions to cater to patient and customer needs in healthcare.

This partnership, which began in 1990, today includes gadgets and

equipment for diagnostics, healthcare IT solutions and services to help
healthcare professionals combat cancer, heart disease, and other
ailments. There incomplete adherence to Six Sigma quality standards in
all product.
Wipro company previous last 5 years financial statements are as given
below-:
BALANCE SHEET OF THE COMPANY- For the assessment year
2011-12 to 2015-16.
ASSESSMENT YEAR
EQUITIES
LIABILITIES

2015-16

2015-14

2014-13

2013-12

494.1

493.7

493.2

492.6

2011-12

AND

SHAREHOLDER'S
FUNDS
Equity Share Capital

490.8
Total Share Capital

494.1

493.7

493.2

492.6
490.8

Reserves and Surplus

Total Reserves
Surplus
Total
Funds

and

Shareholders

Equity
Share
Application Money

40,411.10

34,127.9
0

28,862.70

34,127.9
0

28,862.70

34,621.6
0

29,355.90

1,146.50

1,063.20

1,006.10

59

40,411.10

40,905.20

23,736.90
20,829.40
23,736.90
20,829.40
24,229.50
21,320.20
0

NON-CURRENT
LIABILITIES
Long Term Borrowings

20,829.40

Deferred
Liabilities [Net]
Other
Long
Liabilities

Tax

72.2

56.7

137.9

52.8
20,829.40

Term

46.4

28.1

62.9

11.8
21,320.20

Long Term Provisions

399.1

273.6

258.5

228.9

Total
Non-Current
Liabilities

1,664.20

1,421.60

1,465.40

352.5

20,829.40
20,829.40

CURRENT LIABILITIES
Short
Borrowings

Term

5,549.50

4,970.40

3,504.20

3,987.00
2,775.40

Trade Payables

5,993.10

5,728.80

5,390.50

4,922.80

Other
Liabilities

2,665.20

2,551.10

2,401.30

3,805.40

Current

3,609.90
1,245.40

Short Term Provisions

2,399.30

4,115.00

3,619.60

3,409.40

Total
Liabilities

59,176.50

53,408.5
0

45,736.90

40,706.60

Current

Total
Capital
Liabilities

And
59,176.50

53,408.5
0

2,693.90
10,324.60

45,736.90

40,706.60

34,119.80

ASSETS
NON-CURRENT
ASSETS
Tangible Assets

3,726.20

3,570.00

3,621.50

3,556.00

Intangible Assets

462.5

468.4

353.5

353.4

Capital
Progress

325.1

361.2

275.1

378.9

Work-In-

4,104.50
132.5
396.4

Fixed Assets

4,513.80

4,399.60

4,250.10

4,288.30

Non-Current

5,732.80

5,579.70

5,196.80

4,854.70

4,633.40
6,018.40

Investments
Deferred Tax Assets
[Net]

290.4

Long Term Loans And

Advances

3,358.40

Other
Assets

Non-Current

252.4

Total
Assets

Non-Current

165.9

148.7

115.1
10.8

3,071.00

2,998.10

2,516.80
962.7

336.8

539

546.9
782.3

14,147.80

13,553.0
0

13,132.70

12,321.80
12,407.60

CURRENT ASSETS
Current Investments

12,730.20

5,188.80

5,839.20

6,049.50

Inventories

526.2

479.4

228.3

320.5

Trade Receivables

8,704.80

8,144.20

8,550.90

8,499.40

Cash
And
Equivalents

12,007.80

15,667.5
0

10,554.90

7,800.40

5,256.10

2,929.30

Cash

Short Term Loans And

Advances
Other Current Assets
Total Current Assets
Total Assets

OTHER
ADDITIONAL
INFORMATIO
N
CONTINGEN

5,499.50

4,795.00
724.9
5,781.30
5,203.30

2,124.40

2,483.50

5,560.20

5,119.50

4,501.60

3,590.60

2,724.20

45,028.70

39,855.5
0

32,604.20

28,384.80

21,712.20

59,176.50

53,408.5
0

45,736.90

40,706.60

34,119.80

T
LIABILITIES,
COMMITMEN
TS
Contingent
Liabilities

4,385.10

3,022.20

2,793.40

2,657.80

1,677.90

627.2

851.3

1,524.20

2,101.70

2,735.80

16

14.7

18.9

15.2

20

0.1

23.1

20,818.10

19,430.80

14,789.73

12,068.52

8,854.31

0.03

0.03

0.03

0.02

0.01

CIF
VALUE
OF IMPORTS
Raw
Materials
Stores,
Spares And
Loose Tools
Capital
Goods
EXPENDITUR
E
IN
FOREIGN
EXCHANGE
Expenditure
In
Foreign
Currency
REMITTANCE
S
IN
FOREIGN
CURRENCIES
FOR
DIVIDENDS
Dividend
Remittance
In
Foreign
Currency
EARNINGS
IN FOREIGN
EXCHANGE

FOB
Value
Of Goods
Other
Earnings

40,412.40

36,675.90

34,440.80

28,076.10

18,348.30

73.8

90.6

28

26.4

28.8

475.82

475.82

475.82

475.82

475.82

5,912.10

5,579.70

5,196.80

4,854.70

1,139.50

1,102.40

1,825.70

706.8

2,464.50

17,364.20

4,093.80

4,037.80

5,346.90

2,335.10

BONUS
DETAILS
Bonus
Equity Share
Capital
NONCURRENT
INVESTMENT
S
Non-Current
Investments
Quoted
Market Value
Non-Current
Investments
Unquoted
Book Value

6,018.40

CURRENT
INVESTMENT
S
Current
Investments
Quoted
Market Value
Current
Investments
Unquoted
Book Value

PROFIT & LOSS ACCOUNTS OF THE COMPANY- For the

assessment year 2011-12 to 2015-16.
ASSESSMEN
T YEAR

2015-16

2015-14

2014-13

2013-12

2012-11

INCOME
Revenue From
Operations
[Gross]

44,684.60

41,210.00

38,765.10

33,229.60

31,803.40

Less:
Excise/Service
Tax/Other Levies

0.2

7.9

3.1

120.5

Revenue From
Operations [Net]

44,684.60

41,209.80

38,757.20

33,226.50

31,682.90

Total Operating
Revenues

44,684.60

41,209.80

38,757.20

33,226.50

31,682.90

2,771.50

2,499.00

1,611.20

1,325.30

1,227.40

47,456.10

43,708.80

40,368.40

34,551.80

32,910.30

0.2

3.4

205.3

354.2

1,447.50

2,655.50

2,456.40

2,285.80

2,347.20

3,208.60

-53.1

-254.3

0.9

-18.2

21,379.70

19,726.30

18,337.50

15,904.20

44.9

Other Income
Total Revenue
EXPENSES
Cost Of Materials
Consumed
Purchase Of
Stock-In Trade
Changes In
Inventories Of
FG,WIP And
Stock-In Trade
Employee
Benefit Expenses

Finance Costs
Depreciation And
Amortizations
Expenses
Other Expenses
Total Expenses
Profit/Loss
Before
Exceptional,
Extraordinary
Items And Tax
Profit/Loss
Before Tax

527.8

362.9

374.7

352.4

605.7

868.8

778.4

736.7

701.3

746.1

11,595.10

10,078.70

8,819.30

7,705.60

7,627.40

36,974.00

33,151.80

30,760.20

27,346.70

26,991.70

10,482.10

10,557.00

9,608.20

7,205.10

5,918.60

10,482.10

10,557.00

9,608.20

7,205.10

5,918.60

2,452.30

2,376.60

2,056.30

1,530.00

1,281.00

71.9

106

-69.2

-12.7

52.4

10

-16

112.1

86.8

2,383.10

2,363.90

2,220.80

1,554.90

74.5

8,099.00

8,193.10

7,387.40

5,650.20

1,233.50

8,099.00

8,193.10

7,387.40

5,650.20

4,685.10

Tax ExpensesContinued
Operations
Current Tax
Less: MAT Credit
Entitlement
Deferred Tax
Tax For Earlier
Years
Total Tax
Expenses
Profit/Loss After
Tax And Before
Extraordinary
Items
Profit/Loss From
Continuing

Operations
Profit/Loss For
The Period

8,099.00

8,193.10

7,387.40

5,650.20

4,685.10

OTHER
ADDITIONAL
INFORMATI
ON
EARNINGS
PER SHARE
Basic EPS
(Rs.)

32.97

33

30.09

23.03

19.13

Diluted EPS
(Rs.)

32.91

33

30.01

22.99

19.09

Imported
Raw
Materials

2.6

141.6

242.6

488

Indigenous
Raw
Materials

0.8

63.7

111.6

959.5

VALUE OF
IMPORTED
AND
INDIGENIOU
S RAW
MATERIALS

STORES,
SPARES
AND LOOSE
TOOLS
DIVIDEND
AND
DIVIDEND
PERCENTAG

E
Equity
Share
Dividend

1,482.30

2,963.60

1,973.60

1,724.70

1,475.20

Tax On
Dividend

308.5

592.4

335.3

289.2

239.3

Equity
Dividend
Rate (%)

300

600

400

350

300

2. HCL COMPANY
HCL TECHNOLOGY LIMITED-: is an Indian multinational IT
services company, headquartered in Noida, Uttar Pradesh, India. It is a
subsidiary of HCL Enterprise. Originally a research and development
division of HCL it emerged as an independent company in 1991 when
HCL ventured into the software services business .HCL Technologies
(an acronym for Hindustan Computers Limited) offers services
including IT consulting, enterprise transformation, remote infrastructure
management, engineering and R&D, and business process
outsourcing(BPO).The company has offices in 34 countries including
the United States, European countries like France and Germany, and
Northern Ireland in the United Kingdom. It operates across a number of
sectors including aerospace and defence, automotive, consumer
electronics, energy and utilities, financial services, government,
industrial manufacturing, life sciences and healthcare, media and
entertainment, mining and natural resources, public services, retail and
consumer, semiconductor, server and storage, telecom, and travel,
transportation, logistics, and hospitality. HCL Technologies is on the
Forbes Global 2000 list. It is among the top 20 largest publicly traded
companies in India with a market capitalization of $22.1 billion as of
May 2015. As of August 2015, the company, along with its subsidiaries,
had consolidated revenue of $6.0billion tie-in October 1999. HCL is an
acronym for Hindustan Computers Limited. HCL Technologies is one of
the four companies under HCL Corporation, the second company being

HCL Info systems. In February, 2014 HCL launched HCL Healthcare.

HCL Talent Care is the fourth and latest venture of HCL Corporation.
HCL Technologies began as the R&D Division of HCL Enterprise, a
company which was a contributor to the development and growth of the
IT and computer industry in India. HCL Enterprise developed an
indigenous microcomputer in 1978, and a networking OS and client
server architecture in 1983. On 12 November 1991, HCL Technologies
was spun off as a separate unit to provide software services. HCL
Technologies was originally incorporated as HCL Overseas Limited.
The name was changed to HCL Consulting Limited on 14 July 1994. On
6 October1999, the company was renamed HCL Technologies Limited
for a better reflection of its activities. Between1991 and 1999, the
company expanded its software development capacities to the US,
European and APAC markets.
BUSINESS LINES
1. Applications Services
2. BPO/Business Services
3. Engineering and R&D Services (ERS)
4. Infrastructure Management Services (IMS)
Other service, High-tech & Manufacturing Aerospace & Defence,
Telecom, Retail & CPG, Life Science, Healthcare, Media &
Entertainment, Travel, Transportation & Logistics, Automotive,
Government, Energy & Utilities.
MAJOR ACHIVEMENTS
Developed the first indigenous micro-computer in 1978.
Indigenously developed in RDBMS, a Networking OS and Client
Server architecture in 1983.
In 1986, HCL become the largest IT Company in India.
HCL introduced fine grained multi-processor Unix-3 years ahead
of sun and HP.

BALANCE SHEET OF THE COMPANY- From assessment year

2011-12 to 2015-16.
ASSESSMENT
YEAR
EQUITIES
LIABILITIES

2016-15 2015-14

2014-13

2013-12

2012-11

AND

SHAREHOLDER'S
FUNDS
Equity Share Capital
Total Share Capital
Reserves
Surplus

and

Total Reserves and

Surplus
Total Shareholders
Funds
Equity
Share
Application Money

282.08

281.2

140

139.37

138.66

282.08

281.2

140

139.37

138.66

21,226.7
8

19,124.5
3

15,605.61

10,093.36

6,465.15

21,226.7
8

19,124.5
3

15,605.61

10,093.36

6,465.15

19,405.7
3

15,745.61

10,232.73

6,603.81

0.02

7.65

5.01

2.77

27.45

532.66

525.65

21,508.8
6
0.05

NON-CURRENT
LIABILITIES
Long
Borrowings
Deferred
Liabilities [Net]

Term

28.16

27.22

Tax
0

Other Long
Liabilities

Term

Long
Provisions

Term

148.68
282.94

515.43

436.92

349.63

198.77

175.28

165.98

163.18

277.01

Total
Non-Current
Liabilities

453.85
508.93

718.16

1,135.56

1,038.46

29.25

82.48

173.22

CURRENT
LIABILITIES
Short
Borrowings

Term
0.03

Trade Payables
Other
Liabilities

Current

Short
Provisions

Term

Total
Liabilities

Current

Total Capital
Liabilities

And

453.92

468.58

392.47

333.29

380.32

3,284.36

3,643.67

4,006.16

2,978.45

1,883.84

888.13

915.2

1,191.81

794.61

5,000.38

5,343.08

4,586.03

3,231.99

24,915.0
6

21,814.50

15,959.33

10,877.03

3,020.41

3,024.98

2,404.30

1,896.95

1,552.39

53.34

39.25

44.27

57.23

61.32

582.12

543.95

518.5

488.19

549.55

3,655.87

3,608.18

2,967.07

2,442.37

2,163.26

3,502.58

3,500.23

3,559.72

3,609.72

2,933.67

230.81

217.88

311.79

376.69

237.15

899.31

4,637.62

26,600.3
8

ASSETS
NON-CURRENT
ASSETS
Tangible Assets
Intangible Assets
Capital
Progress

Work-In-

Fixed Assets
Non-Current
Investments
Deferred Tax Assets
[Net]

Long Term Loans

And Advances

1,290.04

1,106.39

836.78

764.09

621.67

297.51

308.1

132.62

132.7

242.57

8,976.81

8,740.78

7,807.98

7,325.57

6,198.32

470.86

624.73

556.29

445.98

364.28

128.56

83.65

15.54

81.84

99.99

4,084.53

3,578.28

3,224.19

2,709.21

1,992.42

8,662.96

8,829.41

7,911.08

2,808.83

1,041.20

Short Term Loans

And Advances

2,572.89

1,657.70

984.32

1,511.51

428.71

Other
Assets

1,703.77

1,400.51

1,315.10

1,076.39

752.11

Total Current Assets

17,623.5
7

16,174.2
8

14,006.52

8,633.76

4,678.71

Total Assets

26,600.3
8

24,915.0
6

21,814.50

15,959.33

10,877.03

Other
Assets

Non-Current

Total
Non-Current
Assets
CURRENT ASSETS
CURRENT ASSETS
Current Investments
Inventories
Trade Receivables
Cash
And
Equivalents

OTHER
ADDITIONAL
INFORMATIO
N
CONTINGEN
T
LIABILITIES,
COMMITMEN
TS

Cash

Current

Contingent
Liabilities

3,644.36

975.34

1,222.24

3,519.61

4,186.27

95.14

142.75

138.25

133.95

200.28

1,236.42

1,535.76

1,419.40

1,131.64

884.04

383.82

407.78

191.95

120.06

120.66

11,625.13

14,684.51

14,239.77

11,381.19

222.26

222.26

81.69

81.69

CIF
VALUE
OF IMPORTS
Capital
Goods
EXPENDITUR
E
IN
FOREIGN
EXCHANGE
Expenditure
In
Foreign
Currency
REMITTANCE
S
IN
FOREIGN
CURRENCIES
FOR
DIVIDENDS
Dividend
Remittance
In
Foreign
Currency
EARNINGS
IN FOREIGN
EXCHANGE
FOB
Value
Of Goods
Other
Earnings
BONUS
DETAILS
Bonus

8,384.17

Equity Share
Capital

81.69

NONCURRENT
INVESTMENT
S
Non-Current
Investments
Quoted
Market Value
Non-Current
Investments
Unquoted
Book Value

91.54

3,502.58

3,500.23

3,559.72

3,559.72

470.86

624.73

344.25

401.64

2,839.03

CURRENT
INVESTMENT
S
Current
Investments
Quoted
Market Value
Current
Investments
Unquoted
Book Value

364.28

PROFIT & LOSS ACCOUNTS OF THE COMPANY- For the

assessment year 2011-12 to 2015-16.
ASSESSMEN
T YEAR

2011-12

2012-13

2013-14

2014-15

2015-16

INCOME
Revenue
From
Operations
[Gross]

13,433.35

17,153.44

16,497.37

12,517.82

8,907.22

Revenue
From
Operations [Net]

13,433.35

17,153.44

16,497.37

12,517.82

8,907.22

Total Operating
Revenues

13,433.35

17,153.44

16,497.37

12,517.82

8,907.22

968.76

1,199.50

659.12

378.84

300.86

14,402.11

18,352.94

17,156.49

12,896.66

9,208.08

162.66

363.76

345.37

251.66

-46.79

-66.23

64.75

7.83

180.51

4,854.22

5,924.62

5,123.95

4,628.61

45.82

60.64

81.65

76.46

25.85

279.15

299.92

490.7

441.91

3,923.06

Other Expenses
Total Expenses

3,339.44

4,071.69

3,652.41

3,038.99

97.27

Total Expenses

8,634.50

10,654.40

9,758.83

8,445.46

353.07

5,767.61

7,698.54

7,397.66

4,451.20

2,360.74

93.54

2,360.74

Other Income
Total Revenue
EXPENSES
Purchase
Of
Stock-In Trade
Changes
In
Inventories
Of
FG,WIP
And
Stock-In Trade
Employee
Benefit Expenses
Finance Costs
Depreciation And
Amortizations
Expenses

Profit/Loss
Before
Exceptional,
Extraordinary
Items And Tax
Exceptional
Items

Profit/Loss
Before Tax

2,360.74

5,767.61

7,698.54

7,397.66

4,544.74

1,240.33

1,610.45

1,555.74

924.55

416.2

181.86

310.43

115.91

14.43

-5.88

-24.54

52.57

-26.79

-70.1

410.32

1,033.93

1,352.59

1,413.04

840.02

1,950.42

4,733.68

6,345.95

5,984.62

3,704.72

Profit/Loss From
Continuing
Operations

4,733.68

6,345.95

5,984.62

3,704.72

1,950.42

Profit/Loss
The Period

4,733.68

6,345.95

5,984.62

3,704.72

1,950.42

Tax
ExpensesContinued
Operations
Current Tax
Less: MAT Credit
Entitlement
Deferred Tax
Total
Expenses

Tax

Profit/Loss After
Tax And Before
Extraordinary
Items

For

OTHER
ADDITIONAL
INFORMATI
ON
EARNINGS
PER SHARE
Basic
(Rs.)

EPS
33.62

45.17

85.66

53.32

28.23

Diluted EPS
(Rs.)

33.54

44.91

84.51

52.45

27.72

2,251.74

2,385.59

700.27

835.36

830.58

445.85

439.27

113.39

139.82

134.74

800

1,500.00

500

600

600

VALUE
OF
IMPORTED
AND
INDIGENIOU
S
RAW
MATERIALS
STORES,
SPARES
AND LOOSE
TOOLS
DIVIDEND
AND
DIVIDEND
PERCENTAG
E
Equity
Share
Dividend
Tax
On
Dividend
Equity
Dividend
Rate (%)

3. TECH MAHINDRA LIMITED

TECH MAHINDRA LIMITED -: is an Indian multinational
provider of information technology (IT), Networking. Technology
solutions and Business Process Outsourcing (BPO) to the
telecommunications industry. Anand Mahindra is the founder of Tech
Mahindra, which is headquartered at Pune, India. Part of the Mahindra
Group, Tech Mahindra is a US$4.03 billion company with 105,000+

employees across 51 countries. It provides services to customers which

include Fortune 500 companies. It is also one of the Fab 50 companies
in Asia, a list compiled by Forbes. Tech Mahindra was ranked #5 in
Indias software services (IT) firms and overall #111 in Fortune India
500 list for 2012. Tech Mahindra, on 25 June 2013, announced the
completion of a merger with Mahindra Satyam. Tech Mahindra has
more than 800 active clients as of 2016. Quires controlling stake in the
Company, subject to the approval of the Hon'ble Company Law Board.
Through subsidiary, it has emerged victorious in Satyam sell-off; a
company probably two times its size in number of people. This was one
of the largest merger deals in Indias tech industry.
FOUNDATION
Mahindra & Mahindra started a joint venture with British Telecom in
1986 as a technology outsourcing firm. British Telecom initially had
around 30 percent stake in the Tech Mahindra Company. In December
2010, British Telecom sold 5.5 per cent of its stake in Tech Mahindra to
Mahindra & Mahindra for Rs 451 crore In August 2012; British Telecom
sold 14.1 per cent of its stake to institutional investors for about Rs
1,395 crore. In December 2012, British Telecom sold its remaining 9.1
percent (11.6 million shares) shareholding to institutional investors for
total gross cash proceeds of Rs 1,011.4 crore. This sale marked the exit
of British Telecom from Tech Mahindra.
ACQUISITION STAYAM COMPUTER PVT. LTD
After the Satyam scandal of 2008-09 Tech Mahindra bid for Satyam
Computer Services, and emerged as a top bidder with an offer of Rs
58.90 a share for a 31 percent stake in the company, beating a strong
rival Larsen&Toubro. After evaluating the bids, the government
appointed board of Satyam Computer announced on 13April 2009: its
Board of Directors has selected Venture by Consultants Private Limited,
a subsidiary controlled by Tech Mahindra Limited as the highest bidder
to acquires controlling stake in the Company, subject to the approval of
the Hon'ble Company Law Board. through subsidiary, it has emerged
victorious in Satyam sell-off, a company probably two times its size in

number of people. This was one of the largest merger deals in Indias
tech industry.
3 MERGERS WITH MAHINDRA SYSTEM
Mahindra Group V-C Anand Mahindra Tech Mahindra announced its
merger with Mahindra Satyam on March 21, 2012, after the board of
two companies gave the approval ,to build a 2.5 billion $ IT Company in
India. The two firms had received the go-ahead for merger from the
Bombay Stock Exchange and the National Stock Exchange. On June 11,
2013, Andhra Pradesh High Court gave its approval for the merger of
Mahindra Satyam with Tech Mahindra, after Bombay high court already
gave its approval.[Vineet Nayar said that technical approvals from the
Registrar of Companies (Roc) in Andhra Pradesh and Maharashtra are
required which will be done in two to four weeks, and within 8 weeks,
new merged entity will be in place, a new organisation chart would also
come into force led by Anand Mahindra as Chairman, Vineet Nayyar as
Vice Chairman and C. P. Gurnani as the CEO and Managing Director.
On June 25, 2013, Tech Mahindra announced completion of Mahindra
Satyams merger with itself to create nations fifth largest software
services company with a turnover of USD 2.7 billion. Tech Mahindra
got the approval from the registrar of companies for the merger late in
the night at 11:45 pm on June24, 2013. July 5, 2013 has been
determined as record date on which the Satyam Computer Services
('Mahindra Satyam') shares will be swapped for Tech Mahindra shares
under the approved scheme, which was approved by both the boards.
Mahindra Satyam (Satyam Computer Services) was suspended from
trading with effect From July 4, 2013, following its merger with Tech
Mahindra. Tech Mahindra completed share swap and allocated its shares
to the shareholders of Satyam Computer Services on July 12, 2013. The
stock exchanges have accorded their approval for trading the new shares
effective July 12, 2013. Tech Mahindra posted net profit of Rs 686 crore
for the first quarter ended June 30, 2013, up 27% compared to the
corresponding quarter last year.
BALANCE SHEET OF THE COMPANY- From assessment year
2011-12 to 2015-16.

ASSESSMENT
YEAR
EQUITIES
LIABILITIES

2011-12 2012-13 2013-14

2014-15

2015-16

AND

SHAREHOLDER'S
FUNDS
Equity Share Capital
Total Share Capital
Reserves and Surplus
Total Reserves
Surplus
Total
Funds

and

Shareholders

Equity
Share
Application Money
Share
Suspense

483.9

480.4

233.5

128.1

127.5

483.9

480.4

233.5

128.1

127.5

13,068.3
0

10,775.4
0

8,355.10

4,054.40

3,315.70

13,068.3
0

10,775.4
0

8,355.10

4,054.40

3,315.70

13,552.2
0

11,255.8
0

8,588.60

4,182.50

3,443.20

1.4

0.3

1.5

0.3

1,230.40

1,230.40

1,230.40

170.9

300

600

374.1

227

430.9

346.6

329.3

320.3

169.2

170.6

517.5

329.3

699.4

696.2

1,201.50

Capital

NON-CURRENT
LIABILITIES
Long Term Borrowings
Other
Long
Liabilities

Term

Long Term Provisions

Total
Non-Current
Liabilities
CURRENT LIABILITIES

Short
Borrowings

Term
0

804.5

526.6

2,183.70

1,833.10

1,431.90

564.4

468.4

1,015.30

890.3

1,698.00

804.6

566.9

2,149.40

1,477.30

1,089.40

206

138.8

5,348.40

4,200.70

4,219.30

2,379.50

1,700.70

20,649.9
0

17,016.5
0

14,739.20

7,258.50

6,345.40

2,256.90

1,948.50

1,793.90

713.3

646.3

22.8

32.5

39.7

6.8

6.3

627.5

551.1

264

28.4

162.7

2,907.20

2,532.10

2,097.60

748.5

815.3

3,796.30

3,630.90

2,294.00

3,807.50

3,133.10

Deferred Tax Assets

[Net]

385.7

288

310.9

94.4

82

Long Term Loans And

Advances

1,260.60

1,076.50

940.6

449.6

334.1

26.5

0.1

15.7

8,376.30

7,527.60

5,658.80

5,100.00

4,364.50

Trade Payables
Other
Liabilities

Current

Short Term Provisions

Total
Liabilities

Current

Total
Capital
Liabilities

And

ASSETS
NON-CURRENT
ASSETS
Tangible Assets
Intangible Assets
Capital
Progress

Work-In-

Fixed Assets
Non-Current
Investments

Other
Assets

Non-Current

Total

Non-Current

Assets
CURRENT ASSETS
Inventories

1,049.00

456.8

120.3

0.2

5,154.40

4,240.80

3,927.80

1,372.50

1,243.10

3,284.80

1,819.50

2,826.30

271.1

138.9

1,229.10

1,226.60

978.3

183.9

Total Current Assets

12,273.6
0

9,488.90

9,080.40

2,158.50

1,980.90

Total Assets

20,649.9
0

17,016.5
0

14,739.20

7,258.50

6,345.40

Trade Receivables
Cash
And
Equivalents

Cash

Short Term Loans And

Advances
Other Current Assets

OTHER
ADDITIONAL
INFORMATIO
N
CONTINGEN
T
LIABILITIES,
COMMITMEN
TS
Contingent
Liabilities

2,980.00

6,390.60

2,385.10

558.9

45.1

22.3

12.9

0.8

265.8

CIF
VALUE
OF IMPORTS
Raw
Materials
Stores,
Spares

And

0.9

Loose Tools
Capital
Goods

80.5

209.8

149.8

29.3

63.7

0.3

0.2

0.1

11.9

11.9

19,990.30

18,366.90

15,550.20

5,549.70

4,702.80

351.4

18.7

5.8

1.2

4.6

345.51

345.51

105.35

105.35

105.35

EXPENDITUR
E
IN
FOREIGN
EXCHANGE
Expenditure
In
Foreign
Currency
REMITTANCE
S
IN
FOREIGN
CURRENCIES
FOR
DIVIDENDS
Dividend
Remittance
In
Foreign
Currency
EARNINGS
IN FOREIGN
EXCHANGE
FOB
Value
Of Goods
Other
Earnings
BONUS
DETAILS
Bonus
Equity Share
Capital

NONCURRENT
INVESTMENT
S
Non-Current
Investments
Quoted
Market Value
Non-Current
Investments
Unquoted
Book Value

39.2

44.7

16.2

3,992.80

4,188.00

2,967.60

3,851.40

3,177.00

1,059.90

467.7

120.3

CURRENT
INVESTMENT
S
Current
Investments
Quoted
Market Value
Current
Investments
Unquoted
Book Value

PROFIT & LOSS ACCOUNTS OF THE COMPANY- For the

assessment year 2011-12 to 2015-16.
ASSESSMEN
T YEAR
INCOME
Revenue
From
Operations
[Gross]
Revenue
From
Operations [Net]

2011-12

2012-13

2013-14

2014-15

2015-16

Total Operating
Revenues
Other Income
Total Revenue
EXPENSES
Cost Of Materials
Consumed
Operating
And
Direct Expenses
Employee
Benefit Expenses
Finance Costs
Depreciation And
amortization
Expenses
Other Expenses
Total Expenses
Profit/Loss
Before
Exceptional,
extraordinary
Items And Tax
Profit/Loss
Before Tax
Tax
ExpensesContinued
Operations

Current Tax
Deferred Tax
Other
Taxes

Direct

Total
Expenses

Tax

Profit/Loss After
Tax And Before
extraordinary
Items
Prior
Items

Period

Extraordinary
Items
Profit/Loss From
Continuing
Operations
Profit/Loss
The Period

OTHER
ADDITIONAL
INFORMATI
ON
EARNINGS
PER SHARE
Basic
(Rs.)

EPS

Diluted EPS
(Rs.)

For

VALUE
OF
IMPORTED
AND
INDIGENIOU
S
RAW
MATERIALS
STORES,
SPARES
AND LOOSE
TOOLS
DIVIDEND
AND
DIVIDEND
PERCENTAG
E
Equity
Share
Dividend
Tax
On
Dividend
Equity
Dividend
Rate (%)

4.INFOSYS TECHNOLOGY LIMITED.

INFOSYS TECHNOLOGY LIMITED-: is an Indian multinational
corporation that provides business consulting, information technology
and outsourcing services. It is headquartered in Bangalore, Karnataka.
Infosys is the second-largest Indian IT services company by 2016
revenues, and the fifth largest employer of H-1B visa professionals in
the United States in FY2013 On 15 February 2015, its market
capitalisation was 263,735 crores ($42.51 billion), making it Indias
sixth largest publicly traded company.
Infosys was co-founded in 1981 by 7 Engineers N.R. Narayan Murthy,
Nandan Nilekani, N. S. Raghavan, S, S. Gopala Krishnan, S. D.

Shibulal, K. Dinesh and Ashok Arora after they resigned from Patni
Computer Systems. The company was incorporated as Infosys
Consultants Pvt Ltd. with a capital of 10,000or US$250 (equivalent to
about $651 in 2015) in Model Colony, Pune as the registered office. It
signed its first client, Data Basics Corporation, in New York City. In
1983, the companys corporate headquarters was relocated from Pune to
Bangalore.
CHANGE IN COMPANY NAME
The Company changed its name to Infosys Technologies Private
Limited in April 1992 into Infosys Technologies Limited when it
became a public limited company in June 1992. It was later renamed to
Infosys Limited in June 2011.An initial public offer (IPO) in February
1993 with an offer price of 95 (equivalent to 480 or US$7.20 in2016)
per share against book value of 20 (equivalent to 100 or US$1.50 in
2016) per share. The Infosys IPO was under subscribed but it was
bailed out by US investment bank Morgan Stanley which picked up
13% of equity at the offer price. Its shares were listed in stock
exchanges in June 1993 with trading opening at 145 (equivalent to
740 or US$11 in 2016) per share. In October 1994, it made a private
placement of 5, 50,000 shares at 450 (equivalent to 2,100 or US$31
in 2016) each against book value of 10 (equivalent to 46 or 68$ US
in 2016) per share to Foreign Institutional Investors (FIIs), Financial
Institutions (FIs) and Corporates. In March 1999, it issued 2,070,000
ADSs (equivalent to 1,035,000 equity shares of par value of 10
(equivalent to 30 or 45 US in 2016) each) at US$34 (equivalent to
$48.3 in 2015) per ADS under the American Depositary Shares Program
and the same were listed on the NASDAQ National Market in US. The
total issue amount was US$70.38 million. The share price surged to
8,100 (equivalent to 24,000or US$360 in 2016) by 1999 making it
the costliest share on the market at the time. At that time, Infosys was
among the 20 biggest companies by market capitalization on the
NASDAQ. During July 2003, June 2005 and November 2006, it made
secondary ADS issues of US$294 (equivalent to$378.19 in 2015)
million, US$1.07 (equivalent to $1.3 in 2015) billion and US$1.605
(equivalent to $1.88 in 2015) billion respectively. In December 2002,

Infosys transferred the listing of its American Depositary Shares (ADS)

from the NASDAQ to the NYSE. In July 2014, Infosys spun off a
subsidiary, Systems Ltd., focusing on enterprise software products for
business operations, customer service, procurement and commerce
network domains. In August 2015, Finical joins Edge verve product
portfolio. The credit rating of the company is A- (given by Standard&
Poors on 13-Dec-2013). In February 2015, Infosys announced it would
acquire the US automation technology company Panaya for around $200
million.
PRODUCT AND SERVICE
It provides software development, maintenance and independent
validation services to companies in banking, finance, insurance,
manufacturing and other domains. One of its known products is Finacle
which is a universal banking solution with various modules for retail
&corporate banking.
ACQUISITIONS
In December 2003, Infosys had acquired Australia based IT service
provider Expert Information Services for $23 million. In December
2009, Infosys BPO acquired Atlanta based McCamish Systems for about
$38 million. In January 2012, Infosys BPO acquired Australia based
Portland Group, provider of strategic sourcing and category
management services, for about AUD37million. In September 2012,
Infosys acquired Switzerland based Lodestone Management Consultants
for about$345 million. In March 2015, Infosys acquired Panaya, Inc., a
leading provider of automation technology for large scale enterprise
software management. In June 2015, Infosys acquired Skava, a leading
provider of digital experience solutions, including mobile commerce and
in-store shopping experiences to large retail clients. The acquisition of
Skava is part of Infosys strategy to help clients bring new digital
experiences to their customers through IP-led technology offerings, new
automation tools and unparalleled skill and expertise in these new
emerging areas.

BALANCE SHEET OF THE COMPANY- From assessment year

2011-12 to 2015-16.
ASSESSMENT
YEAR
EQUITIES
LIABILITIES

2011-12

AND

SHAREHOLDER'S
FUNDS
Equity Share Capital
Total Share Capital
Reserves
Surplus

and

Total Reserves and

Surplus
Total Shareholders
Funds
NON-CURRENT
LIABILITIES
Deferred
Liabilities [Net]
Other Long
Liabilities

Tax

Term

Total
Non-Current
Liabilities
CURRENT
LIABILITIES
Trade Payables

2012-13 2013-14

2014-15

2015-16

Other
Liabilities

Current

Short
Provisions

Term

Total
Liabilities

Current

Total Capital
Liabilities

And

ASSETS
NON-CURRENT
ASSETS
Tangible Assets
Intangible Assets
Capital
Progress

Work-In-

Fixed Assets
Non-Current
Investments
Deferred Tax Assets
[Net]
Total
Assets

Non-Current

CURRENT ASSETS
Trade Receivables
Cash
And
Equivalents

Cash

Short Term Loans

And Advances
Other
Assets

Current

Total Current Assets

Total Assets

OTHER
ADDITIONAL
INFORMATIO
N
CONTINGEN
T
LIABILITIES,
COMMITMEN
TS
Contingent
Liabilities
CIF
VALUE
OF IMPORTS
Raw
Materials
Capital
Goods
EXPENDITUR
E
IN
FOREIGN
EXCHANGE
Expenditure
In
Foreign
Currency

REMITTANCE
S
IN
FOREIGN
CURRENCIES
FOR
DIVIDENDS
Dividend
Remittance
In
Foreign
Currency
EARNINGS
IN FOREIGN
EXCHANGE
FOB
Value
Of Goods
Other
Earnings
BONUS
DETAILS
Bonus
Equity Share
Capital
NONCURRENT
INVESTMENT
S
Non-Current
Investments
Quoted
Market Value
Non-Current
Investments
Unquoted
Book Value

CURRENT
INVESTMENT
S
Current
Investments
Quoted
Market Value
Current
Investments
Unquoted
Book Value

PROFIT & LOSS ACCOUNTS OF THE COMPANY- For the

assessment year 2011-12 to 2015-16.
ASSESSMEN
T YEAR
INCOME
Revenue
From
Operations
[Gross]
Revenue
From
Operations [Net]
Total Operating
Revenues
Other Income
Total Revenue
EXPENSES
Operating
And
Direct Expenses
Employee

2011-12

2012-13

2013-14

2014-15

2015-16

Benefit Expenses
Depreciation And
amortization
Expenses
Other Expenses
Total Expenses
Profit/Loss
Before
Exceptional,
extraordinary
Items And Tax
Exceptional
Items
Profit/Loss
Before Tax
Tax
ExpensesContinued
Operations
Current Tax
Deferred Tax
Total
Tax
Expenses
Profit/Loss After
Tax And Before
extraordinary
Items
Profit/Loss From
Continuing
Operations
Profit/Loss
The Period

For

OTHER
ADDITIONAL
INFORMATI
ON
EARNINGS
PER SHARE
Basic
(Rs.)

EPS

Diluted EPS
(Rs.)
VALUE
OF
IMPORTED
AND
INDIGENIOU
S
RAW
MATERIALS
STORES,
SPARES
AND LOOSE
TOOLS
DIVIDEND
AND
DIVIDEND
PERCENTAG
E
Equity
Share
Dividend
Tax
On
Dividend
Equity
Dividend
Rate (%)

5.TCL (Tata Consultancy Limited)

TATA CONSULTANCY LIMITED-: Established in 1968, Tata
consultancy services a member of Tata Group has grown to its current
position as the largest IT services firm in Asia based on its record of
outstanding services, collaborative partnership, innovation, and
corporate responsibility. It was founded by Jamset ji Tata in 1848 and it
is one of Indias most respected institutions today. The mission reflects
the Tata Groups longstanding commitment to providing excellence. To
help customers achieve their business objectives by providing
innovative, best-in-class consulting, IT Solution and services, and to
actively engage all stakeholders in productive, collaborative, and
mutually beneficial relationship. TCSs ability to deliver high-quality
services and solution is unmatched. They are the worlds first
organisation to achieve an enterprise-wide Maturity level 5 on both
CMMI and P-CMM using the most rigorous assessment methodology
SCAMPISM. Additionally TCSs Integrated Quality Management
System (iQMS) integrated process people and technology maturity
through various established framework and practices including IEEE,
ISO 9000-2000, CMMI,SW-CMM, P-CMM and 6-sigma. Its a largest
IT employer in India. It provides service to wide range of segment like
banking & financial services, energy, resources & utilities, government,
telecom, media & information service etc. TCS acquired Citigroup
Global Service (CGSL), India based BPO for $505 million. The
acquisition broadened portfolio of end-to-end IT and BPO services in
global Banking & Finical services (BFS) sector. TCSs enhance scale
and expertise will be providing service improvements to Citi and Citis
customers. CGSL has more than 12,000 employees located in India and
expected to generate revenues of approximately $278 million in 2016.
Tata Consultancy Services deliver real results to global businesses,
ensuring a level of certainly no other firm can match. TCSs offers a
Consulting-led, integrated portfolio of IT and IT- enabled services
delivered through its unique Global Network Delivery Model,
recognised as the benchmark of excellence in software development.
TCSs has over 1, 43,000 of the worlds best trained IT consultant in 42
countries. Tata Consultancy Services announced the launch of TCS

Banks Core Banking Releases 12.0 at the annual flagship event for
banking and capital markets, SIBOS 2011, in Toronto. In 2014 TCS
announced to set up largest Corporate Learning Centre in
Thiruvanantpuram with a capacity of train 50,000 IT professionals every
year.
PRODUCT AND SERVIES OFFER BY THE COMPANY-:
TECHNOLOGY PRODUCTS-:
1. Exegenix Intelligent Document Conversion Solution
2. Support Central- Business Social Productivity Platform
3. TCS Digital Certification Services/ Public Key Infrastructure (PKI)
Suite
4. TCS Tax Mantra Integrated Tax Solution
5. TCS Data Cleansing Framework
6. TCS Business Rules Engine
7. TCS Experience Based KM (Knowledge Management)
8. TCS Call Management Solution
9. TCS Certification Validation Server
10. TCS File Authentication Solution
11. TCS eLearning Effectiveness Measures Solutions
12. TCS Code Generator Framework
13. TCS Saakshi (Time Stamping Solution)
14. TCS from Authentication Solution
15. TCS Direct Metal Deposition CAM
16. TCS Stand Alone Post Processor
17. TCS Web FACTOR (Web-enabled Plant Management tool)
18. TCS Smart Box (Next Generation Industrial Controller
Development Framework)
19. TCS Sevak- self-service terminal
20. TCS Teamcenter for Medical Device
OTHER PRODUCTS-:
1. TCS Clin-e2e
2. TCS Hospital Management Solution
3. TCS silicone Ambulatory ECG Device and Solution

4. TCS Enterprise Integration and Control Environment Solution/

Energy and Utilities
5. TCS Bio- Information Solution
SOFTWARE SERVICES-: IT Services
1. Custom Application Development
2. Application Management
3. Migration & Re- engineering
4. System Integration
5. Testine
BALANCE SHEET OF THE COMPANY- From assessment year
2011-12 to 2015-16.
ASSESSMEN
T YEAR
EQUITIES
AND
LIABILITIES
SHAREHOLDER'S
FUNDS
Equity
Capital

Share

Preference Share
Capital
Total
Capital
Reserves
Surplus

Share

and

Total
Reserves
and Surplus
Total
Shareholders
Funds

2011-12

2012-13

2013-14

2014-15

2015-16

NON-CURRENT
LIABILITIES
Long
Term
Borrowings
Deferred
Tax
Liabilities [Net]
Other Long Term
Liabilities
Long
Provisions

Term

Total
Current
Liabilities

Non-

CURRENT
LIABILITIES
Short
Term
Borrowings
Trade Payables
Other
Current
Liabilities
Short
Provisions

Term

Total
Current
Liabilities
Total Capital And
Liabilities
ASSETS
NON-CURRENT
ASSETS

Tangible Assets
Intangible Assets
Capital Work-InProgress
Fixed Assets
Non-Current
Investments
Deferred
Tax
Assets [Net]
Long Term Loans
And Advances
Other
NonCurrent Assets
Total
NonCurrent Assets
CURRENT
ASSETS
Current
Investments
Inventories
Trade
Receivables
Cash And Cash
Equivalents
Short Term Loans
And Advances
Other
Assets

Current

Total
Assets

Current

Total Assets

OTHER
ADDITIONAL
INFORMATIO
N
CONTINGEN
T
LIABILITIES,
COMMITMEN
TS
Contingent
Liabilities
CIF
VALUE
OF IMPORTS
Raw
Materials
Stores,
Spares And
Loose Tools
Capital
Goods
EXPENDITUR
E
IN
FOREIGN
EXCHANGE
Expenditure
In
Foreign
Currency
REMITTANCE
S
IN
FOREIGN
CURRENCIES

FOR
DIVIDENDS
Dividend
Remittance
In
Foreign
Currency
EARNINGS
IN FOREIGN
EXCHANGE
FOB
Value
Of Goods
Other
Earnings
BONUS
DETAILS
Bonus
Equity Share
Capital
NONCURRENT
INVESTMENT
S
Non-Current
Investments
Quoted
Market Value
Non-Current
Investments
Unquoted
Book Value
CURRENT
INVESTMENT
S

Current
Investments
Quoted
Market Value
Current
Investments
Unquoted
Book Value

PROFIT & LOSS ACCOUNTS OF THE COMPANY- For the

assessment year 2011-12 to 2015-16.
ASSESSMEN
T YEAR
INCOME
Revenue
From
Operations
[Gross]
Less:
Excise/Service
Tax/Other Levies
Revenue
From
Operations [Net]
Total Operating
Revenues
Other Income
Total Revenue
EXPENSES
Cost Of Materials
Consumed
Operating

And

2011-12

2012-13

2013-14

2014-15

2015-16

Direct Expenses
Changes
In
Inventories
Of
FG,WIP
And
Stock-In Trade
Employee
Benefit Expenses
Finance Costs
Finance Costs
Depreciation And
amortization
Expenses
Other Expenses
Total Expenses
Profit/Loss
Before
Exceptional,
extraordinary
Items And Tax
Exceptional
Items
Profit/Loss
Before Tax
Tax
ExpensesContinued
Operations
Current Tax
Less: MAT Credit
Entitlement
Deferred Tax

Tax For
Years

Earlier

Total
Expenses

Tax

Profit/Loss After
Tax And Before
extraordinary
Items
Profit/Loss From
Continuing
Operations
Profit/Loss
The Period

OTHER
ADDITIONAL
INFORMATI
ON
EARNINGS
PER SHARE
Basic
(Rs.)

EPS

Diluted EPS
(Rs.)
VALUE
OF
IMPORTED
AND
INDIGENIOU
S
RAW
MATERIALS
Imported
Raw
Materials

For

Indigenous
Raw
Materials
STORES,
SPARES
AND LOOSE
TOOLS
Imported
Stores And
Spares
Indigenous
Stores And
Spares
DIVIDEND
AND
DIVIDEND
PERCENTAG
E
Equity
Share
Dividend
Preference
Share
Dividend
Tax
On
Dividend
Equity
Dividend
Rate (%)

6. ITC INFOTECH
ITC INFOTECH-: is a specialised global scale full service provider of
Domain, Data and Digital technology solutions, backed by a strong

business and technology consulting focus. The company caters to

enterprises in Supply Chain based industries (CPG, Retail,
Manufacturing, Hi-Tech) and Services (Banking, Financial Services and
Insurance, Airline, Hospitality) through a combination of traditional and
newer business models, as a long term sustainable partner. With clients
spread across 35 countries, ITC Info tech is engaged with over 60
Fortune listed companies. The company has set up offices in 18
countries and established 10 global development centres, powered by a
6500+ strong workforce. Leading companies have placed their trust in
ITC Info tech; the companys Top 10 clients have been with ITC Info
tech for over 10 years, a testament to ITC Info techs commitment to
delivering enhanced business value. ITC won the 2014European
Outsourcing Award in the category "Delivering Business Value in
European Outsourcing and is featured Info tech in the Global
Outsourcing 100 Leaders Category by the International Association
of Outsourcing Professionals (IAOP) for 9 consecutive years.
Recognising that cutting-edge R&D can foster breakthrough innovation
and create powerful sources of sustainable competitive advantage, ITC
continues to invest in this area, leveraging its world-class infrastructure,
benchmarked processes, state-of-the-art technology and businessfocused R&D strategy. With a team of over 350 world-class scientists,
the state-of-the-art ITC Life Sciences & Technology Centre in
Bengaluru is engaged in developing unique sources of competitive
advantage and building future readiness by harnessing contemporary
advances in science and technology, applying them in product
development and leveraging cross-business synergies.
TYPE OF PRODUCTS-:
1. Domains
2. Digital Design
3. Supply chain based industries (CPG, Retail, Manufacturing, HiTech)
4. Services industries (Banking, Financial Services and Insurance,
Airlines, Hospitality etc.

BALANCE SHEET OF THE COMPANY- From assessment year

2011-12 to 2015-16.
ASSESSMEN
T YEAR
EQUITIES
AND
LIABILITIES
SHAREHOLDER'S
FUNDS
Equity
Capital

Share

Preference Share
Capital
Total
Capital
Reserves
Surplus

Share

and

Total
Reserves
and Surplus
Total
Shareholders
Funds
NON-CURRENT
LIABILITIES
Long
Term
Borrowings
Deferred
Tax
Liabilities [Net]
Other Long Term
Liabilities

2011-12

2012-13

2013-14

2014-15

2015-16

Long
Provisions

Term

Total
Current
Liabilities

Non-

CURRENT
LIABILITIES
Short
Term
Borrowings
Trade Payables
Other
Current
Liabilities
Short
Provisions

Term

Total
Current
Liabilities
Total Capital And
Liabilities
ASSETS
NON-CURRENT
ASSETS
Tangible Assets
Intangible Assets
Capital Work-InProgress
Fixed Assets
Non-Current
Investments

Deferred
Tax
Assets [Net]
Long Term Loans
And Advances
Other
NonCurrent Assets
Total
NonCurrent Assets
CURRENT
ASSETS
Current
Investments
Inventories
Trade
Receivables
Cash And Cash
Equivalents
Short Term Loans
And Advances
OtherCurrentAss
ets
Total
Current
Assets
Total Assets

OTHER
ADDITIONAL
INFORMATIO
N
CONTINGEN

T
LIABILITIES,
COMMITMEN
TS
Contingent
Liabilities
CIF
VALUE
OF IMPORTS
Raw
Materials
Stores,
Spares And
Loose Tools
Capital
Goods
EXPENDITUR
E
IN
FOREIGN
EXCHANGE
Expenditure
In
Foreign
Currency
REMITTANCE
S
IN
FOREIGN
CURRENCIES
FOR
DIVIDENDS
Dividend
Remittance
In
Foreign
Currency
EARNINGS
IN FOREIGN

EXCHANGE
FOB
Value
Of Goods
Other
Earnings
BONUS
DETAILS
Bonus
Equity Share
Capital
NONCURRENT
INVESTMENT
S
Non-Current
Investments
Quoted
Market Value
Non-Current
Investments
Unquoted
Book Value
CURRENT
INVESTMENT
S
Current
Investments
Quoted
Market Value
Current
Investments
Unquoted
Book Value

PROFIT & LOSS ACCOUNTS OF THE COMPANY- For the

assessment year 2011-12 to 2015-16.
ASSESSMEN
T YEAR
INCOME
Revenue
From
Operations
[Gross]
Less:
Excise/Service
Tax/Other Levies
Revenue
From
Operations [Net]
Total Operating
Revenues
Other Income
Total Revenue
EXPENSES
Cost Of Materials
Consumed
Operating
And
Direct Expenses
Changes
In
Inventories
Of
FG,WIP
And
Stock-In Trade
Employee
Benefit Expenses
Finance Costs

2011-12

2012-13

2013-14

2014-15

2015-16

Depreciation And
amortization
Expenses
Other Expenses
Total Expenses
Profit/Loss
Before
Exceptional,
extraordinary
Items And Tax
Exceptional
Items
Profit/Loss
Before Tax
Tax
ExpensesContinued
Operations
Current Tax
Less: MAT Credit
Entitlement
Deferred Tax
Tax For
Years
Total
Expenses

Earlier

Tax

Profit/Loss After
Tax And Before
extraordinary
Items
Profit/Loss From
Continuing
Operations

Profit/Loss
The Period

OTHER
ADDITIONAL
INFORMATI
ON
EARNINGS
PER SHARE
Basic
(Rs.)

EPS

Diluted EPS
(Rs.)
VALUE
OF
IMPORTED
AND
INDIGENIOU
S
RAW
MATERIALS
Imported
Raw
Materials
Indigenous
Raw
Materials
STORES,
SPARES
AND LOOSE
TOOLS
Imported
Stores And
Spares
Indigenous
Stores And

For

Spares
DIVIDEND
AND
DIVIDEND
PERCENTAG
E
Equity
Share
Dividend
Preference
Share
Dividend
Tax
On
Dividend
Equity
Dividend
Rate (%)

7. CISCO

Cisco Systems, Inc. is the worldwide leader in networking for the

Internet. Today, networks are an essential part of business, education,
government, and home communications. Cisco hardware, software, and
service offerings are used to create the Internet solutions that make these
networks possible, giving individuals, companies, and countries easy
access to information anywhere, at any time. In addition, Cisco has
pioneered the use of the Internet in its own business practice and offers
consulting services based on its experience to help other organizations
around the world. Cisco was founded in 1984 by a small group of
computer scientists from Stanford University. This year, the company
celebrates 20years of commitment to technology innovation, industry
leadership, and corporate social responsibility. Since the companys
inception, Cisco engineers have led in the innovation of Internet
Protocol (IP)-based networking technologies. This tradition of IP
innovation continues with the development of industry-leading products
in the core technologies of routing and switching, along with Advanced

Technologies in areas such as home networking, IP telephony, optical

networking, security, storage area networking, and wireless technology.
In addition to its products, Cisco provides a broad range of service
offerings, including technical support and advanced services. Cisco sells
its products and services, both directly through its own sales force as
well as through its channel partners, to large enterprises, commercial
businesses, service providers, and consumers. As a company, Cisco
operates on core values of customer focus and corporate social
responsibility. We express these values through global involvement in
educational, community, and philanthropic efforts.
PRODUCT AND SERVICES
Ciscos products and services focus upon three market segmentsEnterprise and services provider, small business and the home. Cisco
has grown increasingly popular in Asia-Pacific region over the last three
decades and is the dominate vendor in the Australia market with
leadership across all markets segments. The main headquarter of cisco
also in Australia. The following are the products and services of cisco
company-:
Enterprise NetworksProducts in these categories are ciscos range of routers, switches,
wireless system, security system, WAN acceleration hardware,
energy and building management system and media networks.
CollaborationIP videos and phones, Tele Presence, Health presence, unified
communication, call centre system, Enterprises, social network
and mobile application.
Data centre and VirtualizationUnified computing, unified fabrics, data centre switching, storage
networking and cloud computing services.
IP NGN (Next Generation Network)High end routing and switching for fixed and mobile services
provide network, broadcast video contribution/distribution
entitlement and content delivery system.

SMALL BUSINESS
Small business includes home business and (usually technology based)
startups.
Routers and switches
Security and surveillance
Voice and conferencing
Wireless
Network storage system etc.
PROFIT & LOSS ACCOUNTS OF THE COMPANY- For the
assessment year 2011-12 to 2015-16.
ASSESSMEN
T YEAR

2011-12

Cisco Net Sales

or Revenues
Cost Of Goods
Sold (COGS)
Cisco
Profit

Gross

Research
Development
Expense

&

Selling General
&
Admin
Expense
Income
Before
Depreciation
Depletion
Amortization
Depreciation
Depletion
Amortization

2012-13

2013-14

2014-15

2015-16

Non-Operating
Income
Interest Expense
Cisco
Income

Pretax

Provision
for
Income Taxes
Minority Interest
Investment
Gains Losses
Other Income
Income
Before
Extraordinary &
Disc Operations
Extraordinary
Items
Discontinued
Operations
Cisco
Income
(Profit/Loss)

&

Net

Average Shares
used to compute
Diluted EPS
Average Shares
used to compute
Basic EPS
Income
Before
Nonrecurring
Items
Income
from
Nonrecurring

Items
Cisco
Earnings
Per Share Basic
Net
Cisco
Earnings
Per
Share
Diluted Net
EPS
Diluted
Before
Nonrecurring
Items
Preferred
Dividends
Dividends
Common
Dividend
Per
Share Common
Profit/Loss
Before
Exceptional,
ExtraOrdinary
Items And Tax
Profit/Loss
Before Tax
Tax
ExpensesContinued
Operations
Current Tax
Deferred Tax
Other
Taxes
Total
Expenses

Direct

Tax

Profit/Loss After
Tax And Before
ExtraOrdinary
Items
Prior
Items

Period

Extraordinary
Items
Profit/Loss From
Continuing
Operations
Profit/Loss
The Period

OTHER
ADDITIONAL
INFORMATI
ON
EARNINGS
PER SHARE
Basic
(Rs.)

EPS

Diluted EPS
(Rs.)
VALUE
OF
IMPORTED
AND
INDIGENIOU
S
RAW
MATERIALS
Imported
Raw
Materials
Indigenous

For

Raw
Materials
STORES,
SPARES
AND LOOSE
TOOLS
DIVIDEND
AND
DIVIDEND
PERCENTAG
E
Equity
Share
Dividend
Tax
On
Dividend
Equity
Dividend
Rate (%)

8. LARSEN & TOUBRO

Larsen & Toubro is a US$14.3 billion technology, engineering,

construction and manufacturing and financial services conglomerate. It
addresses critical needs in key sectors including infrastructure,
construction, hydrocarbon, power, defence and aerospace. Its footprint
extends across seven countries in addition to India. A strong, customerfocused approach, conformance to global HSE standards and the
constant quest for top-class quality have enabled the Company to sustain
leadership in its major lines of business for over 75 years. L&T was
rated 58th Most Innovative Company by Forbes International and 4th in
the global list of green companies in the industrial sector by
Newsweek. It was voted among the most admired companies in the
country by Fortune India, and rated 8th Most Powerful Brand in India
by Brand Finance. It won The Economic Times Corporate Citizen of the
Year Award - 2013, instituted by one of the worlds most widely sold

business newspapers - The Economic Times. A survey by a leading HR

consultancy affirmed its reputation as a people-focused company,
leading to the award for the Most Attractive Employer in the industrial
sector.
History
The evolution of L&T into a major engineering and construction
organisation is among the more remarkable success stories in Indian
industry. It was founded in Mumbai (then Bombay) in 1938 by two
Danish engineers, Henning Holck-Larsen and Soren Kristian Toubro.
Beginning with the import of machinery from Europe, L&T took on
engineering and construction assignments of increasing sophistication.
Today, the company sets engineering benchmarks in terms of scale and
complexity.
Corporate Sustainability
L&T was the first company in India in the engineering & construction
space to publicly disclose its sustainability performance. The Companys
annual Sustainability Reports highlight achievements and objectives
across the traditional three Ps of Planet, People and Profits. All our
Reports are rated A+ by Global Reporting Initiatives, indicating the
highest level of disclosure. The recognition that the Company has
secured from forums
Around the world affirm public perception of L&T as an organization
that contributes significantly to the wellbeing of people.
Information Technology
Larsen & Toubro InfoTech, a 100% subsidiary of L&T, offers
comprehensive, end-to-end software solutions and services with a focus
on Manufacturing, BFSI and Communications & Embedded Systems. It
provides a cost cutting partnership in the realm of offshore outsourcing,
application integration and package implementation. Leveraging the
heritage and domain expertise of the parent company, its services
encompass a broad technology spectrum, catering to leading
international companies across the globe.

Technology Services
L&T Technology Services provides leading-edge engineering solutions
to multiple industry sectors like automotive, aerospace, consumer
electronics, consumer packaged goods, marine, medical devices, offhighway equipment, railways, pharmaceuticals, oil & gas, utilities,
infrastructure and industrial products. With its global headquarters at
Vadodara, the Company operates through dedicated engineering centres
in tandem with onsite teams worldwide. Its client base includes several
Fortune 500 companies.
OTHER PRODUCTS/SERVICES OF L&T
L&T Hydrocarbon Engineering
Transportation Infrastructure
Heavy Civil Infrastructure
Building & Factories
Power Transmission & Distribution
Water Projects & Solar Energy
Metallurgical & Material Handling
Power
Heavy Engineering
Ship building
Electrical & Automation
Machinery & Industrial Products
Infrastructure Development
Financial Services
BALANCE SHEET OF THE COMPANY- From assessment year
2011-12 to 2015-16.
ASSESSMEN
T YEAR
EQUITIES
AND
LIABILITIES

2011-12

2012-13

2013-14

2014-15

2015-16

SHAREHOLDER'S
FUNDS
Equity
Capital

Share

Total
Capital

Share

Revaluation
Reserves
Reserves
Surplus

and

Total
Reserves
and Surplus
Total
Shareholders
Funds
Equity
Share
Application
Money
NON-CURRENT
LIABILITIES
Long
Term
Borrowings
Deferred
Tax
Liabilities [Net]
Total
Current
Liabilities

Non-

CURRENT
LIABILITIES
Short
Term
Borrowings

Trade Payables
Other
Current
Liabilities
Short
Provisions

Term

Total
Current
Liabilities
Total Capital And
Liabilities
ASSETS
NON-CURRENT
ASSETS
Tangible Assets
Intangible Assets
Capital Work-InProgress
Fixed Assets
Non-Current
Investments
Deferred
Tax
Assets [Net]
Other
NonCurrent Assets
Total
NonCurrent Assets
CURRENT
ASSETS
Inventories

Trade
Receivables
Cash And Cash
Equivalents
Short Term Loans
And Advances
Other
Assets

Current

Total
Assets

Current

Total Assets

OTHER
ADDITIONAL
INFORMATIO
N
CONTINGEN
T
LIABILITIES,
COMMITMEN
TS
Contingent
Liabilities
CIF
VALUE
OF IMPORTS
Raw
Materials
Capital
Goods
EXPENDITUR
E
IN

FOREIGN
EXCHANGE
Expenditure
In
Foreign
Currency
REMITTANCE
S
IN
FOREIGN
CURRENCIES
FOR
DIVIDENDS
Dividend
Remittance
In
Foreign
Currency
EARNINGS
IN FOREIGN
EXCHANGE
FOB
Value
Of Goods
Other
Earnings
BONUS
DETAILS
Bonus
Equity Share
Capital
NONCURRENT
INVESTMENT
S
Non-Current
Investments
Quoted
Market Value

Non-Current
Investments
Unquoted
Book Value
CURRENT
INVESTMENT
S
Current
Investments
Quoted
Market Value
Current
Investments
Unquoted
Book Value

PROFIT & LOSS ACCOUNTS OF THE COMPANY- For the

assessment year 2011-12 to 2015-16.
ASSESSMEN
T YEAR
INCOME
Revenue
From
Operations
[Gross]
Less:
Excise/Service
Tax/Other Levies
Revenue
From
Operations [Net]
Other Operating
Revenues
Total

Operating

2011-12

2012-13

2013-14

2014-15

2015-16

Revenues
Other Income
Total Revenue
EXPENSES
Cost Of Materials
Consumed
Purchase
Of
Stock-In Trade
Operating
And
Direct Expenses
Changes
In
Inventories
Of
FG,WIP
And
Stock-In Trade
Employee
Benefit Expenses
Finance Costs
Depreciation And
amortization
Expenses
Other Expenses
Less:
Amounts
Transfer
To
Capital Accounts
Total Expenses
Profit/Loss
Before
Exceptional,
extraordinary

Items And Tax

Exceptional
Items
Profit/Loss
Before Tax
Tax
ExpensesContinued
Operations
Current Tax
Deferred Tax
Total
Expenses

Tax

Profit/Loss After
Tax And Before
extraordinary
Items
Extraordinary
Items
Profit/Loss From
Continuing
Operations
Profit/Loss
The Period

OTHER
ADDITIONAL
INFORMATI
ON
EARNINGS
PER SHARE

For

Basic
(Rs.)

EPS

Diluted EPS
(Rs.)
VALUE
OF
IMPORTED
AND
INDIGENIOU
S
RAW
MATERIALS
Imported
Raw
Materials
Indigenous
Raw
Materials
STORES,
SPARES
AND LOOSE
TOOLS
DIVIDEND
AND
DIVIDEND
PERCENTAG
E
Equity
Share
Dividend
Tax
On
Dividend
Equity
Dividend
Rate (%)

9. ORACLE
Oracle Corporation is an American multinational computer technology
corporation, Headquarter in Redwood shores, California. The company
primarily specialized in developing and marketing database software
and technology, cloud engineered system and enterprises software
products particularly its own brands of database management system.
In 2015 Oracle was the second largest software maker by revenue, after
Microsoft.
The company also develops and builds tools for database development
any system of middle-tier software, enterprise resource planning (ERP)
software, customer relationship management (CRM) software and
supply chain management (SCM) software.
BALANCE SHEET OF THE COMPANY- From assessment year
2006-10.
ASSESSMEN
T YEAR
EQUITIES
AND
LIABILITIES
SHAREHOLDER'S
FUNDS
Equity
Capital

Share

Total
Capital

Share

Reserves
Surplus

and

Total
Reserves
and Surplus
Total
Shareholders
Funds

2011-12

2012-13

2013-14

2014-15

2015-16

Equity
Share
Application
Money
NON-CURRENT
LIABILITIES
Other Long Term
Liabilities
Long
Provisions

Term

Total
Current
Liabilities

Non-

CURRENT
LIABILITIES
Trade Payables
Other
Current
Liabilities
Short
Provisions

Term

Total
Current
Liabilities
Total Capital And
Liabilities
ASSETS
NON-CURRENT
ASSETS
Tangible Assets
Intangible Assets
Capital

Work-In-

Progress
Fixed Assets
Non-Current
Investments
Deferred
Tax
Assets [Net]
Long Term Loans
And Advances
Other
NonCurrent Assets
Total
NonCurrent Assets
CURRENT
ASSETS
Current
Investments
Trade
Receivables
Cash And Cash
Equivalents
Short Term Loans
And Advances
OtherCurrentAss
ets
Total
Assets

Current

Total Assets

OTHER
ADDITIONAL

INFORMATIO
N
CONTINGEN
T
LIABILITIES,
COMMITMEN
TS
Contingent
Liabilities
CIF
VALUE
OF IMPORTS
Raw
Materials
Capital
Goods
EXPENDITUR
E
IN
FOREIGN
EXCHANGE
Expenditure
In
Foreign
Currency
REMITTANCE
S
IN
FOREIGN
CURRENCIES
FOR
DIVIDENDS
Dividend
Remittance
In
Foreign
Currency
EARNINGS
IN FOREIGN
EXCHANGE

FOB
Value
Of Goods
Other
Earnings
BONUS
DETAILS
Bonus
Equity Share
Capital
NONCURRENT
INVESTMENT
S
Non-Current
Investments
Quoted
Market Value
Non-Current
Investments
Unquoted
Book Value
CURRENT
INVESTMENT
S
Current
Investments
Quoted
Market Value
Current
Investments
Unquoted
Book Value

PROFIT & LOSS ACCOUNTS OF THE COMPANY- For the

assessment year 2011-12 to 2015-16.
ASSESSMEN
T YEAR
INCOME
Revenue
From
Operations
[Gross]
Revenue
From
Operations [Net]
Total Operating
Revenues
Other Income
Total Revenue
EXPENSES
Cost Of Materials
Consumed
Operating
And
Direct Expenses
Employee
Benefit Expenses
Provisions
and
Contingencies
Depreciation And
amortization
Expenses
Other Expenses
Total Expenses
Profit/Loss

2011-12

2012-13

2013-14

2014-15

2015-16

Before
Exceptional,
ExtraOrdinary
Items And Tax
Exceptional
Items
Profit/Loss
Before Tax
Tax
ExpensesContinued
Operations
Current Tax
Deferred Tax
Other
Taxes

Direct

Total
Expenses

Tax

Profit/Loss After
Tax And Before
extraordinary
Items
Prior
Items

Period

Extraordinary
Items
Profit/Loss From
Continuing
Operations
Profit/Loss
The Period

For

OTHER
ADDITIONAL
INFORMATI
ON
EARNINGS
PER SHARE
Basic
(Rs.)

EPS

Diluted EPS
(Rs.)
VALUE
OF
IMPORTED
AND
INDIGENIOU
S
RAW
MATERIALS
STORES,
SPARES
AND LOOSE
TOOLS
DIVIDEND
AND
DIVIDEND
PERCENTAG
E
Tax
On
Dividend

10. CYIENT
Cyient (Formerly known as InfoTech Enterprises) is an Indian company
focused on engineering, networking and operations. It has 12,000+

employees across 38 global locations as of march 2014. The company

features among the top 30 outsourcing companies in the world. On 15
January 2010, Daxcon was acquired by Info Tech Enterprise America,
Inc. a wholly owned subsidiaries of Info Tech Enterprises Limited,
India.
On 7 May 2014, Cyient limited, formerly known as InfoTech
Enterprises Limited, officially announced its new name based on
approval from a shareholders vote. The process of determining the new
identity, bearing connotations to the word client and science, while ient
referencing InfoTech Enterprises involved various brand specialists, and
the new name was tested in 17 languages.
GROUPS OF COMPANIES
Cyient is the big brnad in the IT Sector and have so many groups of
companies all over the world. some are the groups of Cyient company
are given below-:

cyient Inc
Cyient Europe Ltd.
Rangsons Electronic
Info Tech Enterprises
Information Technology Services
Pvt Ltd.
Cyient Singapore Pvt Ltd.
Cyient Insights
Cyient Ltd (Japan)
Cyient GmbH
BALANCE SHEET OF THE COMPANY- From assessment year
20011-112 to 2015-16.
ASSESSMEN
T YEAR
EQUITIES
AND
LIABILITIES
SHAREHOLDER'S
FUNDS
Equity
Capital

Share

2011-12

2012-13

2013-14

2014-15

2015-16

Preference Share
Capital
Total
Capital
Reserves
Surplus

Share

and

Total
Reserves
and Surplus
Total
Shareholders
Funds
NON-CURRENT
LIABILITIES
Long
Term
Borrowings
Other Long Term
Liabilities
Long
Provisions

Term

Total
Current
Liabilities

Non-

CURRENT
LIABILITIES
Short
Term
Borrowings
Trade Payables
Other
Current
Liabilities

Short
Provisions

Term

Total
Current
Liabilities
Total Capital And
Liabilities
ASSETS
NON-CURRENT
ASSETS
Tangible Assets
Intangible Assets
Capital Work-InProgress
Intangible Assets
Under
Development
Fixed Assets
Non-Current
Investments
Deferred
Tax
Assets [Net]
Long Term Loans
And Advances
Other
NonCurrent Assets
Total
NonCurrent Assets

CURRENT
ASSETS
Current
Investments
Trade
Receivables
Cash And Cash
Equivalents
Short Term Loans
And Advances
OtherCurrentAss
ets
Total
Assets

Current

Total Assets

OTHER
ADDITIONAL
INFORMATIO
N
CONTINGEN
T
LIABILITIES,
COMMITMEN
TS
Contingent
Liabilities
CIF
VALUE
OF IMPORTS
Raw
Materials

Capital
Goods
EXPENDITUR
E
IN
FOREIGN
EXCHANGE
Expenditure
In
Foreign
Currency
REMITTANCE
S
IN
FOREIGN
CURRENCIES
FOR
DIVIDENDS
Dividend
Remittance
In
Foreign
Currency
EARNINGS
IN FOREIGN
EXCHANGE
FOB
Value
Of Goods
Other
Earnings
BONUS
DETAILS
Bonus
Equity Share
Capital
NONCURRENT

INVESTMENT
S
Non-Current
Investments
Quoted
Market Value
Non-Current
Investments
Unquoted
Book Value
CURRENT
INVESTMENT
S
Current
Investments
Quoted
Market Value
Current
Investments
Unquoted
Book Value

PROFIT & LOSS ACCOUNTS OF THE COMPANY- For the

assessment year 2011-12 to 2015-16.
ASSESSMEN
T YEAR
INCOME
Revenue
From
Operations
[Gross]
Revenue
From
Operations [Net]

2011-12

2012-13

2013-14

2014-15

2015-16

Total Operating
Revenues
Other Income
Total Revenue
EXPENSES
Cost Of Materials
Consumed
Operating
And
Direct Expenses
Employee
Benefit Expenses
Finance Costs
Depreciation And
Amortisation
Expenses
Other Expenses
Total Expenses
Profit/Loss
Before
Exceptional,
ExtraOrdinary
Items And Tax
Exceptional
Items
Profit/Loss
Before Tax
Tax
ExpensesContinued
Operations

Current Tax
Less: MAT Credit
Entitlement
Deferred Tax
Other
Taxes

Direct

Tax For
Years

Earlier

Total
Expenses

Tax

Profit/Loss After
Tax And Before
ExtraOrdinary
Items
Prior
Items

Period

Profit/Loss From
Continuing
Operations
Profit/Loss
The Period

OTHER
ADDITIONAL
INFORMATI
ON
EARNINGS
PER SHARE
Basic
(Rs.)

EPS

For

Diluted EPS
(Rs.)
VALUE
OF
IMPORTED
AND
INDIGENIOU
S
RAW
MATERIALS
STORES,
SPARES
AND LOOSE
TOOLS
DIVIDEND
AND
DIVIDEND
PERCENTAG
E
Equity
Share
Dividend
Preference
Share
Dividend
Tax
On
Dividend
Equity
Dividend
Rate (%)

IMPLICATION OF MAT OVER THESE IT COMPANIES-:

The Impact of the MAT procedures on these company clearly shows that how
much this method increase/decrease the TAX LIABILITY of the company. As per
the above financial analysis these facts are come into the light-