ASSIGNNMENT

ON
MANAGEMENT CONTROL SYSTEM
Topic:- “A Study on the Internal Control System & Risk Management of
Tata Consultancy Services ltd. (TCS)”
Guide- Dr. Shankharaj Roy
Faculty of Management Studies
ICFAI University, Tripura

Submitted to:-
Saborni Dutta
18IUT0160002
MBA 2nd year
 INTRODUCTION TO TATA CONSULTANCY SERVICES
1. Tata Consultancy Services Limited (TCS) is an Indian multinational information
technology (IT) service and consulting company headquartered in Mumbai,
Maharashtra. It was found jointly by F.C. Kohli & J.R.D Tata in 1951.

2. It is a subsidiary of Tata Group and operates in 149 locations across 46 countries.

3. TCS became the first Indian IT company to reach $100 billion market
capitalization.TCS is one of the largest employers of women with 35.3% of women
employees.

4. TCS is one of the largest employers of women with 35.3% of women employees.

5. TCS and its 67 subsidiaries provides a wide range of information technology-related

products and services including application development, business process outsourcing,
capacity planning, consulting, enterprise software, hardware sizing, payment
processing, software management and technology education services.
 HR PRACTICES AT TCS
• The company majorly depends upon outsourcing. The objective of outsourcing has
traditionally been to reduce operational costs.
• Human Recourse Planning.
• Forecast Personnel Requirements Use Existing Manpower Productively.
• Employment/Job Security.
• Extensive Training.
• Talent Management.
• Employees should not only be free of impropriety and unethical behaviour
Control Measures of TCS
1. Customer relationship management & customer retention in order increase the
business revenue.

2. Providing low end services in terms of cost, resources.

3. TCS provides timely delivery of IT services with the help of quality framework
called as iQMS.
 7 P’S OF TCS
1. Product: It operates in segments like banking and financial services, consumer
packaged goods, energy – oil and gas, government, healthcare, hi tech,
manufacturing, media and information, services, retail, telecom, travel, etc.

2. Price: TCS follows success based pricing model in some of its total outsourcing
contracts and differential pricing model for its iON services, wherein the prices
differ as per different clients.

3. Place: TCS has conquered global market as well through its diversified employee
base, updated technology and business models. It employs people from 120+
nationalities in 55 countries and provides the right mix of talent retention and better
growth opportunities

4. Promotion: TCS has got a well-defined set of programs for each geography. For
example in India TCS runs ALP- adult literacy program, BPS employability
program, Advanced computer training centre – to promote employability for
visually impaired youth.
4. People: The people strategy in the marketing mix of TCS basically focuses on
training employees to fulfil the needs of the clients. TCS also encourages female
employees and avoids gender bias in any form through policies like POSH.
5. Physical evidence: TCS provides best in house facilities with up to date
infrastructure and global environment in all its offices.
6. Process: TCS maintains strong bond with customers by providing and customising
solutions as per their requirement which in turn helps in a good customer
relationship and global recognition of the organisation.
Distribution Control System of TCS
1. TCS Omni Stock: Inventory optimization through right stock at the right node at
the right time.
2. TCS Omni Range: Scientific approach to determine the right product range at the
right node
3. TCS Omni Track: Real-time freshness and fleet tracking.
4. TCS Omni Flow: Product flow optimization across the network.
5. They follow CPFR System.
Benefits of control:
• Ensure seamless customer experience.
• Improve “Available to Promise”.
• Optimize supply chain cost.
• Improve decision making through end-to-end visibility.
• Improve cash flow and service levels.
Risk Management in TCS
1. The Board of Directors of the Company has formed a Risk Management
Committee to frame, implement and monitor the risk management plan for the
Company.
2. The Audit Committee has additional oversight in the area of financial risks and
controls.
3. he development and implementation of risk management policy has been
covered in the Management Discussion and Analysis.
 INTERNAL CONTROL OF TCS

1. Compliance management: Manages planning, scheduling, and

monitoring of compliance projects; ensures stakeholder buy-ins.

2. Issue management: Defines and tags issues, formulates action plans,

assigns responsibilities.

3. Workflow and documentation: Automates workflows for better

management of approvals, internal controls.

4. Risk mitigation: Assesses inherent and residual compliance risks, and

manages related documentation, workflow, and reporting.
 AUDIT OF TCS
1. TCS audit IS in accordance with the Guidance Note and the
Standards on Auditing prescribed under Section 143(10) of the Act.

2. Our audit involves performing procedures to obtain audit evidence

about the adequacy of the internal financial controls system over
financial reporting and their operating effectiveness.

3. Our responsibility is to express an opinion on the internal financial

controls with reference to financial statements of the Holding
Company and its subsidiaries which are incorporated in India.
 AUDIT PROCEDURE
1. Identify and assess the risks of material misstatement of the
consolidated financial statement.
2. Obtain an understanding of internal control relevant to the
audit in order to design audit procedures that are appropriate
in the circumstances.
3. Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates .
4. Evaluate the overall presentation, structure and content of
the consolidated financial statements.
5. Obtain sufficient appropriate audit evidence regarding the
financial information of such entities or business activities