We have audited the standalone financial statements of
Tata Consultancy Services Limited (the "Company") which
comprise the standalone balance sheet as at 31 March 2026,
and the standalone statement of profit and loss (including
other comprehensive income), standalone statement of
changes in equity and the standalone statement of cash flows
for the year then ended, and notes to the standalone financial
statements, including material accounting policies and other
explanatory information.
In our opinion and to the best of our information and according
to the explanations given to us, the aforesaid standalone
financial statements give the information required by the
Companies Act, 2013 ("Act") in the manner so required and
give a true and fair view in conformity with the accounting
principles generally accepted in India, of the state of affairs
of the Company as at 31 March 2026, and its profit and other
comprehensive loss, changes in equity and its cash flows for the
year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards
on Auditing (SAs) specified under Section 143(10) of the Act.
Our responsibilities under those SAs are further described in
the Auditor's Responsibilities for the Audit of the Standalone
Financial Statements section of our report. We are independent
of the Company in accordance with the Code of Ethics issued
by the Institute of Chartered Accountants of India together with
the ethical requirements that are relevant to our audit of the
standalone financial statements under the provisions of the Act
and the Rules thereunder, and we have fulfilled our other ethical
responsibilities in accordance with these requirements and the
Code of Ethics. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our
opinion on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the standalone
financial statements of the current period. These matters were
addressed in the context of our audit of the standalone financial
statements as a whole, and in forming our opinion thereon, and
we do not provide a separate opinion on these matters.
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Revenue recognition-Fixed price contracts where revenue is recognised using percentage of completion method
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See Note 4(a) and 10 to the standalone financial statements
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The key audit matter
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How the matter was addressed in our audit
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The Company inter alia engages in Fixed-price contracts, wherein,
revenue is recognised using percentage of completion computed
as per the input method based on the Company's estimate of
contract costs.
We identified revenue recognition of fixed price contracts where
the percentage of completion is used as a key audit matter since -
• there is an inherent risk and presumed fraud risk around the
accuracy and existence of revenues recognised considering
the customised and complex nature of these contracts and
significant inputs of IT systems;
• application of revenue recognition using percentage of
completion under accounting standard (Ind AS 115, Revenue
from Contracts with customers) is complex and involves
estimating the future cost-to-completion of these contracts,
which is used to measure the stage of completion of the
relevant performance obligations;
• these contracts may involve onerous obligations which
requires critical assessment of foreseeable losses to be made
by the Company; and
• at year-end, significant amount of contract assets, unearned
and deferred revenue balances related to these contracts are
recognised on the balance sheet.
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Our audit procedures included the following:
• Obtained an understanding of the systems, processes and
controls implemented by the Company for recording and
computing revenue and the associated contract assets,
unearned and deferred revenue balances.
• Involved our Information technology ('IT') specialists, as
required and assessed the IT environment in which the
business systems operate.
• Evaluated the design and implementation and tested operating
effectiveness of the Company's key manual and automated
internal financial controls over:
> Computation of revenue;
> Cost and revenue reports generated by the system;
> Allocation of resources and budgeting systems which
prevent the unauthorised recording/changes to
costs incurred; and
> Estimation of contract costs required to complete the
respective projects.
• On specific and statistically selected samples of contracts, we
tested that the revenue recognised is in accordance with the
revenue recognition accounting standard. This includes testing
the Company's computation of the estimation of contract costs
and onerous obligations, if any, where we:
> assessed that the estimates of costs to complete were
reviewed and approved by appropriate designated
management personnel;
> performed a retrospective analysis of costs incurred
with estimated costs to identify significant variations
and challenged whether those variations are required
to be considered in estimating the remaining costs to
complete the contract;
> assessed the appropriateness of contract assets, unearned
and deferred revenue on balance sheet date by evaluating
the progress of underlying contracts and milestones
achieved to identify possible changes in estimated costs to
complete the remaining performance obligations; and
> inspected underlying documents and performed
substantive procedures over cost budget changes to
determine reasonableness of contract costs.
• Tested details of a sample of journal entries related to revenue
recognised from percentage of completion method throughout
the reporting period, using risk-based criteria, with the
relevant underlying documentation.
• Assessed the appropriateness of the related disclosures in the
standalone financial statements.
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Other Information
The Company's Management and Board of Directors are
responsible for the other information. The other information
comprises the information included in the Company's annual
report, but does not include the financial statements and
auditor's report thereon. The Company's annual report is
expected to be made available to us after the date of this
auditor's report.
Our opinion on the standalone financial statements does not
cover the other information and we will not express any form of
assurance conclusion thereon.
In connection with our audit of the standalone financial
statements, our responsibility is to read the other information
identified above when it becomes available and, in doing
so, consider whether the other information is materially
inconsistent with the standalone financial statements or our
knowledge obtained in the audit, or otherwise appears to be
materially misstated.
When we read the Company's annual report, if we conclude
that there is a material misstatement therein, we are required
to communicate the matter to those charged with governance
and take necessary actions, as applicable under the relevant laws
and regulations.
Management's and Board of Directors' Responsibilities for the
Standalone Financial Statements
The Company's Management and Board of Directors are
responsible for the matters stated in Section 134(5) of the Act
with respect to the preparation of these standalone financial
statements that give a true and fair view of the state of affairs,
profit/ loss and other comprehensive income, changes in
equity and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the
Indian Accounting Standards (Ind AS) specified under Section
133 of the Act. This responsibility also includes maintenance of
adequate accounting records in accordance with the provisions
of the Act for safeguarding of the assets of the Company and for
preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making
judgments and estimates that are reasonable and prudent; and
design, implementation and maintenance of adequate internal
financial controls, that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant
to the preparation and presentation of the standalone financial
statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, the
Management and Board of Directors are responsible for assessing
the Company's ability to continue as a going concern, disclosing,
as applicable, matters related to going concern and using the
going concern basis of accounting unless the Board of Directors
either intends to liquidate the Company or to cease operations, or
has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the
Company's financial reporting process.
Auditor's Responsibilities for the Audit of the Standalone
Financial Statements
Our objectives are to obtain reasonable assurance about whether
the standalone financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to
issue an auditor's report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with SAs will always detect a
material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or
in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these
standalone financial statements.
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of
the standalone financial statements, whether due to fraud
or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to
the audit in order to design audit procedures that are
appropriate in the circumstances. Under Section 143(3)(i) of
the Act, we are also responsible for expressing our opinion
on whether the company has adequate internal financial
controls with reference to financial statements in place and
the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by the Management and
Board of Directors.
• Conclude on the appropriateness of the Management
and Board of Directors use of the going concern basis of
accounting in preparation of standalone financial statements
and, based on the audit evidence obtained, whether a
material uncertainty exists related to events or conditions
that may cast significant doubt on the Company's ability to
continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our
auditor's report to the related disclosures in the standalone
financial statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor's
report. However, future events or conditions may cause the
Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content
of the standalone financial statements, including the
disclosures, and whether the standalone financial
statements represent the underlying transactions and
events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding,
among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies
in internal control that we identify during our audit.
We also provide those charged with governance with a statement
that we have complied with relevant ethical requirements
regarding independence, and to communicate with them
all relationships and other matters that may reasonably be
thought to bear on our independence, and where applicable,
related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the standalone financial statements
of the current period and are therefore the key audit matters.
We describe these matters in our auditor's report unless law or
regulation precludes public disclosure about the matter or when,
in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order,
2020 ("the Order") issued by the Central Government of
India in terms of Section 143(11) of the Act, we give in
the "Annexure A" a statement on the matters specified in
paragraphs 3 and 4 of the Order, to the extent applicable.
2. A. As required by Section 143(3) of the Act, we report that:
a. We have sought and obtained all the information
and explanations which to the best of our
knowledge and belief were necessary for the
purposes of our audit.
b. In our opinion, proper books of account as
required by law have been kept by the Company
so far as it appears from our examination
of those books.
c. The standalone balance sheet, the standalone
statement of profit and loss (including other
comprehensive income), the standalone
statement of changes in equity and the
standalone statement of cash flows dealt
with by this Report are in agreement with the
books of account.
d. In our opinion, the aforesaid standalone financial
statements comply with the Ind AS specified
under Section 133 of the Act.
e. On the basis of the written representations
received from the directors as on 1 April 2026
to 9 April 2026 taken on record by the Board of
Directors, none of the directors is disqualified
as on 31 March 2026 from being appointed as a
director in terms of Section 164(2) of the Act.
f. With respect to the adequacy of the internal
financial controls with reference to financial
statements of the Company and the operating
effectiveness of such controls, refer to our
separate Report in "Annexure B".
B. With respect to the other matters to be included in
the Auditor's Report in accordance with Rule 11 of
the Companies (Audit and Auditors) Rules, 2014, in
our opinion and to the best of our information and
according to the explanations given to us:
a. The Company has disclosed the impact of
pending litigations as at 31 March 2026 on its
financial position in its standalone financial
statements- Refer income tax liabilities disclosed
in the balance sheet, Note 8(f) and Note 19 to
the standalone financial statements.
b. The Company did not have any long-term
contracts including derivative contracts for which
there were any material foreseeable losses.
c. There has been no delay in transferring amounts,
required to be transferred, to the Investor
Education and Protection Fund by the Company.
d. (i) The management has represented that,
to the best of its knowledge and belief,
other than as disclosed in the Note 23 to
the standalone financial statements, no
funds have been advanced or loaned or
invested (either from borrowed funds or
share premium or any other sources or
kind of funds) by the Company to or in any
other person(s) or entity(ies), including
foreign entities ("Intermediaries"), with the
understanding, whether recorded in writing
or otherwise, that the Intermediary shall
directly or indirectly lend or invest in other
persons or entities identified in any manner
whatsoever by or on behalf of the Company
("Ultimate Beneficiaries") or provide any
guarantee, security or the like on behalf of
the Ultimate Beneficiaries.
(ii) The management has represented that,
to the best of its knowledge and belief, as
disclosed in the Note 23 to the standalone
financial statements, no funds have
been received by the Company from any
person(s) or entity(ies), including foreign
entities ("Funding Parties"), with the
understanding, whether recorded in writing
or otherwise, that the Company shall
directly or indirectly, lend or invest in other
persons or entities identified in any manner
whatsoever by or on behalf of the Funding
Parties ("Ultimate Beneficiaries") or provide
any guarantee, security or the like on behalf
of the Ultimate Beneficiaries.
(iii) Based on the audit procedures that
have been considered reasonable and
appropriate in the circumstances, nothing
has come to our notice that has caused us
to believe that the representations under
sub-clause (i) and (ii) of Rule 11(e), as
provided under (i) and (ii) above, contain
any material misstatement.
e. The interim dividend declared and paid by the
Company during the year and until the date of
this audit report is in accordance with Section
123 of the Act.
The final dividend paid by the Company during
the year, in respect of the same declared for
the previous year, is in accordance with Section
123 of the Act to the extent it applies to
payment of dividend.
As stated in Note 26 to the standalone financial
statements, the Board of Directors of the
Company have proposed final dividend for
the year which is subject to the approval of
the members at the ensuing Annual General
Meeting. The dividend declared is in accordance
with Section 123 of the Act to the extent it
applies to declaration of dividend.
f. Based on our examination which included test
checks, the Company has used accounting
softwares for maintaining its books of account,
which have a feature of recording audit trail
(edit log) facility and the same has operated
throughout the year for all relevant transactions
recorded in the respective softwares.
Further, we did not come across any instance
of the audit trail feature being tampered with.
Additionally, where audit trail (edit log) facility
was enabled and operated in the previous
years, the audit trail has been preserved by the
Company as per the statutory requirements for
record retention.
C. With respect to the matter to be included in the
Auditor's Report under Section 197(16) of the Act:
In our opinion and according to the information and
explanations given to us, the remuneration paid by
the Company to its directors during the current year
is in accordance with the provisions of Section 197
of the Act. The remuneration paid to any director is
not in excess of the limit laid down under Section 197
of the Act. The Ministry of Corporate Affairs has not
prescribed other details under Section 197(16) of the
Act which are required to be commented upon by us.
For B S R & Co. LLP
Chartered Accountants
Firm's Registration No.:101248W/W-100022
Aniruddha Godbole
Partner
Place: Mumbai Membership No.: 105149
Date: 09 April 2026 ICAI UDIN:26105149WFOLZK5894
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