Mumbai: Tata Consultancy Services, the biggest software services exporter, paid Rs. 8 crore in commission to Ratan Tata, chairman of the company in 2011-12. This is 233 percent more than Rs. 2.4 crore paid in 2010-11. Tata only receives a commission and nominal sitting fees for board meetings as a non-executive chairman of the company.
N. Chandrasekaran, managing director and CEO of the company, received a 50 percent jump in pay at Rs. 8 crore in total compensation in 2011-12. This includes salary, benefits, perquisites, allow-ances and commissions.
For the year ended March 2012, TCS reported a net profit of Rs. 10,638 crore, an increase of around 22 percent over the year ago period.
Here are other highlights of the annual report:
The company hired 70,400 people in 2011-12 on a gross basis, the highest ever in a single year. TCS has 238,583 employees. TCS average revenue per employee stood at Rs. 2,240,000 ($46,527) in 2011-12. This is a growth of 7.6 percent in rupee terms and 2 percent in dollar terms.
The company’s effective tax rate rose to 22.8 percent in 2011-12 from 19.7 percent in 2010-11. This is the first full year after the expiry of tax benefits given to software units under the Software Technology Parks of India (STPI) scheme. The scheme expired on 31 March 2011.
TCS has disputed income tax demands to the tune of Rs. 1,715 crore for the year ended March 2012. The total contingent liabilities stand at Rs. 2,640 crore. Contingent liabilities are estimates of money the company may have to pay for a past event like pending tax disputes. Against these liabilities, TCS has cash and cash equivalent to the tune of Rs. 6,780 crore.