Tata Consultancy Services (TCS), a division of Tata Sons, is consolidating CMC’s revenues into TCS for the fiscal year ending March 31, ’03. Tata Sons had acquired the government’s 51% in CMC as part of the divestment process for Rs 152 crore.

TCS is also negotiating to buy out Swissair’s stake in a JV company — Airline Financial Support Services (AFSS). TCS holds a 21.9% in AFSS, while the rest is held by Swiss Airlines. AFSS is primarily engaged in revenue accounting and software management for frequent flyer programmes. The Tatas began negotiating the buyout after the merger of Swissair with Crossair last year to form Swiss Airlines. TCS CEO
S Ramadorai, told ET, "We are preparing our accounts according to US GAAP and Indian accounting standards and will be consolidating CMC’s revenues into the consolidated balance sheet."

These accounts are being prepared in preparation for a public offering by TCS in the capital markets this year. According to Mr Ramadorai, "The process of corporatisation is currently underway and we are awaiting high court approval for a merger of TCS into a subsidiary of Tata Sons." Tata group officials have indicated in the past that other software companies of the group like Tata Elxsi and Tata infotech will finally be consolidated into TCS. Commenting on this, Mr Ramadorai, said, "This consolidation will take place only after the IPO and not before it. We will go public first, the timing of the issue depends very much on market conditions."

TCS is also looking at increasing its stake in its 50:50 joint venture with HDFC-Intelenet. The joint venture is in the IT enabled services space and has its facilities in Mumbai. According to Mr Ramadorai, "We are looking at increasing our stake in Intelenet, to acquire a controlling stake and will finally consolidate the revenues of this company also with TCS." TCS already holds 50% stake in Intelenet, the remaining stake is held by HDFC group. According to Mr Ramadorai, even a 1% increase in our equity stake in the company will allow us to consolidate its revenues and make it a subsidiary. "Intelenet will then become our vehicle for all our BPO operations," he added. All the consolidation that Mr Ramadorai is planning is in line with the company’s plan to go in for an IPO. TCS is being merged into a subsidiary of Tata Sons called Orchid Print, which will be renamed as TCS and finally go public.