Segment Reporting Practices of TCS And INFOSY...

Segment Reporting Practices of TCS And INFOSYS

Author Name : Gayatri Guha Roy, Dr. Artta Bandhu Jena

ABSTRACT Segment reporting can be defined as the disaggregation of the financial statements of a company or a group of companies into different segments covering sales, revenues and profits, line of business, and geographical markets. Large companies with diversified product lines/marketing regions, which may differ from each other concerning profitability, growth potential, and risk, evidently require segment reporting for highlighting different areas. Information about the segment contributes to investor evaluation of corporate enterprises. Investors would be able to assess the company's earning potential, cash flows, risk, and growth. It would also help the management of the company to evaluate the internal management of the company and frame segmentspecific policies. The scope of this study is to provide insight into segment reporting practices of TCS and INFOSYS. The present study covers a period of 3 years, which starts from the year 2019-20 to 2021-22. The researcher used a secondary method of data collection. The secondary data are collected from the annual reports of TCS and INFOSYS, journals, magazines, newspapers, and websites. The objective of the study is to analyze the segment report of TCS and INFOSYS. It was found that there is a significant difference between the means of segment revenues of TCS and INFOSYS. It was also found that there is no significant difference between the means of geographic segment revenues of TCS and INFOSYS.