Tcs forex losses

Heard about Liberalized Remittance Scheme but don't know what exactly it is? Permissible capital account transaction comprises of buying of property abroad, opening foreign currency account overseas with a bank, investing in shares by acquiring listed and unlisted stocks, lending loans to NRI, and setting up a wholly-owned subsidiary or a joint venture governed by the provisions placed by the Foreign Exchange Management Act.

Permissible current account transaction involves private visit, grants, going overseas for employment or emigration purposes or for taking care of relatives, business purposes, medical purposes, studies, facility to grant loan in rupee to non-resident individual or person of Indian origin and close relatives under the scheme and other current account transactions allowable under the FEMA act.

The limits are subject to variation from time to time. The existing rules have got effective from October 1, , as per the Finance bill, In the case of international tour packages, Travel Company would collect TCS irrespective of the package cost, and the TCS would be applicable to individuals on the entire amount of payments. In some instances, GST is leviable for currency conversion and on remittance charges. Who all are Impacted by the new rules?

The rule change will impact Indian investors investing in overseas stocks, bonds, and property. All Indian students studying abroad and tourists planning a foreign trip will also be affected. Though these new rules increase the upfront costs of overseas investing and expenses, the tax can be claimed back as a refund while filing the income tax return.

Conclusion Indian investors looking to invest in US stocks or globally should not be discouraged from the new TCS rules. While it does increase upfront costs in some cases, it can eventually be claimed back with tax returns. In these challenging times of lockdown and quarantine, everything around us is at a literal standstill, including our stock market. Many of us now wish they had diversified their portfolio, or are looking for efficient ways to diversify it now.

Why is Portfolio Diversification Important? Diversification is an investment strategy that recommends owning several investments that tend to perform well at different times to reduce the effects of market fluctuations.

INVESTING OP AMP INPUT IMPEDANCE MEASUREMENT

TCS had written call options with its bankers at Rs 41 per dollar in April , when the rupee was appreciating against the dollar. These options, known as limited participation contracts, obliged TCS to sell its dollar revenue to banks at Rs 41 whenever the rupee depreciated or moved beyond this threshold.

Such an arrangement had caused TCS to report substantial forex losses in subsequent quarters since the rupee started depreciating sharply. For instance, the rupee plunged to 52 against the dollar in FY09, which meant TCS had to sell every hedged dollar of its revenue under these contracts at Rs 41, incurring a loss of more than Rs 10 per dollar.

The company had reported a forex loss of Rs crore in the March quarter. Its total forex loss for FY09 was Rs For the third quarter ended December 31, it posted a profit after tax of Rs 1, The TCS results are a disappointment after better-than-expected results from rival Infosys Technologies earlier this week lifted spirits, battered by the Satyam and World Bank disclosures.

But the company posted a forex loss of Rs crore, of which Rs crore was on hedging and the remaining, marked-to-market losses. The company posted revenues of Rs 7, crore, up The company declared a quarterly dividend of Rs 3 per share, which is its 18th consecutive quarterly dividend. In comparison, Infosys Technologies, the countrys second-largest software services company, had earlier this week announced a Q3 net profit growth of Infys operating margins increased basis points to The TCS results were announced after markets closed, but its shares on Thursday fell 5.

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FRAZZINI PEDERSEN BUFFETTS INVESTING

The company expects a forex loss of nearly Rs 90 crore in the second-quarter of the current fiscal, up from Rs 84 crore in the first quarter. The marginal increase comes after a substantial drop in forex losses over the past two quarters. TCS had written call options with its bankers at Rs 41 per dollar in April , when the rupee was appreciating against the dollar.

These options, known as limited participation contracts, obliged TCS to sell its dollar revenue to banks at Rs 41 whenever the rupee depreciated or moved beyond this threshold. Such an arrangement had caused TCS to report substantial forex losses in subsequent quarters since the rupee started depreciating sharply.

For instance, the rupee plunged to 52 against the dollar in FY09, which meant TCS had to sell every hedged dollar of its revenue under these contracts at Rs 41, incurring a loss of more than Rs 10 per dollar. CFO S Mahalingam said, In the current environment, it is important to run a tight ship with cost control measures that can be sustained while continuing to invest for the future. We believe that the best course is to mitigate risk, move towards a sustainable and efficient cost base, continuously improve the collection process, and be prudent in cash and currency management.

The company added 41 new clients in the quarter and signed six large deals. TCS said North America appears to be stabilising, adding two new marquee customers during the quarter. Revenues from North America increased Going forward government spending is expected to revive demand, a statement from the company said.

We have added over 30, people in the first nine months, which is in line with our hiring plans for the financial year. Our retention rates for both IT services and BPO have shown significant improvement in the current quarter.

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