Hcl Annual Report Analysis Final 2015 113m68

HCL Annual Report Analysis Mansi Saini Mehak Jain M d . Ta r i q Harsh

Company Profile Company Name

HCL Technologies Ltd.

Corporate Identity No.

L74140DL1991PLC046369

Company Type

Global IT Company

Service Areas

Software, Infrastructure and BPO

Date of Establishment

November 12, 1991

Chairman and Chief Strategy Officer

Shiv Nadar

President & CEO

Anant Gupta

CFO

Anil Chanana

Employee Strength

107,968 on 30thJune 2016

Offices

Offices in 32 countries

Geographies

USA, Europe, Asia Pacific and Japan

Consolidated Revenues

US$ 6.4 bn, for 12 Months Ended 30th June, 2016

Balance sheet

s.n o

(Assets)

PARTICULAR

1.

Non-current assets

Note No.

As at June 30, 2015

S.n o

(Liabilities)

1.

Shares holders funds

(A) Fixed Assets (1) Tangible Assets

2.10

3,403.69

(2) Intangible Assets

2.10

4,871.58

(3) Capital work in progress

PARTICULAR

Note no.

As at June 30, 2015

(A) Share capital

2.1

281.20

(B) Reserves and surplus

2.2

23,943.19 24,224.36 9

551.52

2.

Share application money pending allotment

8,826.7 9

3.

Minoity interest

4.

Non current liabilities

2.3

82.11

(B) Non-current Investment

2.11

106.81

(C) Deferred tax Assets (net)

2.12

789.71

(A) Long term borrowings

2.4

167.89

(D) Long Term Loans and Advances

2.13

1,442.19

(B) Other long term liabilities

2.5

614.57

(E) Other Non- current assets

2.14

1,032.37

(C) Long term provisions

2.6

210.64

12,197. 87 2.

0.02

Current Assets

993.10 5.

Current liabilities

(A) Current Investment

2.11

762.58

(A) Short term borrowings

2.7

355.48

(B) Inventories

2.15

157.61

(B) Trade payables

2.8

625.41

Cash Flow

PARTICULAR

Year Ended 30 June 2015

(A) Cash Flow from operating activities Net Cash flow from operating activities (A)

5,539.20

(B) Cash Flow from investing activities Net Cash flow used in investing activities (B)

(2,013.51)

(C) Cash Flow from Financing Activities Net Cash flows used in Financing Activities (C) Net Increase in cash and cash equivalents (A+B+C)

(3,140.34) 385.35

Effect of exchange differences on cash equivalents held in foreign currency

(74.06)

Cash and cash equivalents at the beginning of the year

1,027.23

Cash and cash equivalents at the year as per note 2.17 (a) (refer note below)

1,338.52

Profit and Loss Statement

PARTICULAR

NOTE NO.

PARTICULAR

(EXPENSES)

Year Ended JUNE 30, 2015

Purchase of traded goods

13, 306.38

Change in inventories of traded goods

2.22

(35.65)

Employee benefits expense

2.23

17,726.43

Finance costs

2.24

91.23

Depreciation and amortization expense

2.10

403.75

Other expenses

2.25

9,231.48

Total expenses

28,723.62

Profit before tax

9,117.06

Tax expense Current tax

2,128.42

MAT credit entitlement

(311.95)

Deferred Tax credit

(1.36)

Total tax expense

1,815.11

Profit after tax & before minority interest / share of profit (loss) of associates

7,301.95

Share of profit of associates

39.90

NOT E NO.

Year Ended JUNE 30, 2015

Revenue from Operations

2.20

36,701.22

Other Income

2.21

1,139.46

(INCOME)

Policies I N V E N T O RY D E P R E C I AT I O N REVENUE RECOGNITION

1. Inventories Stock in trade, stores and spares are valued at the lower of the cost or net realizable value. Net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale. Cost of stock in trade procured for specific projects is assigned by identification of individual costs of each item. Cost of stock in trade, that are interchangeable and not specific to any project and costs of stores and spare parts are determined using the weighted average cost formula.

2. Revenue recognition Revenue is recognized to the extent that it is probable that the economic benefits will flow to the group and the revenue can be reliably measured. Revenue from sale of goods and rendering of services is recognized when risk and reward of ownership have been transferred to the customer, the sale price is fixed or determinable and collectability is reasonably assured.

Depreciation on Tangible Fixed Assets. Depreciation on tangible assets is provided on the straight line method over their estimated useful life as determined by the management. Depreciation charge on a pro-rata basis for assets purchased/sold during the year. The management estimate of the useful life of various tangible fixed assets for computing depreciation are as follow:

Life (in year) Land-leasehold

Over the period of lease (up to maximum of 99 years)

Building Plant & machinery (including air conditioners, Electrical installations and aircraft) Office equipment Computers

20 10 to 17

5 4-5

Furniture and fixtures

7

Vehicle – owned

5

Vehicle – leased

over the period of lease or 5 years, whichever is lower

Leasehold improvements

over the remaining period of lease or 4 years, whichever is lower

Components of Annual Report

Director On a standalone basis, the company achieved revenue of Rs. 18,352.94 cr in the financial year 2014-15 as compared to Rs. 17,156.49 cr in the financial year 2013-14, ing a growth of 6.97%. The profit for the financial year 2014-15 is Rs. 6,345.95 cr as compared to Rs. 5,984.62 cr in financial year 2013-14, ing a growth of 6.04%. On a consolidated basis, the company achieved revenue of Rs. 37,840.68 cr in the financial year 2014-15 as compared to Rs. 32,821.06 cr in the financial year 2013-14, ing a growth of 15.29%. The profit for the financial year 2014-15 is Rs. 7,317.07 cr as compared to Rs. 6,509.51 cr in financial year 2013-14, ing a growth of 12.41%. The state of affairs of the company is presented as part of management Discussion and Analysis Report forming forming part of this Report. In accordance with the companies Act, 2013 (the Act) and ing Standard (AS) – 21 on consolidated Financial Statements read with AS-23 on ing for investments in Associates and AS-27 on financial Reporting of interest in t Venture, the audited consolidated financial statement is provided in the Annual Report.

Learnings from Report Contingent liabilities A contingent liability is a possible obligation that may arise from past events whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arise in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably; the company does not recognize a contingent liability but discloses its existence in the financial statements.

Foreign currency translation 1. Initial Recognition Foreign currency transactions are recorded in the reporting in the reporting currency, by applying to the foreign currency amount, the exchange rate between the reporting currency and the foreign currency, at the date of the transaction. 2. Conversion Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction. 3. Exchange Differences Exchange differences arising on the settlement of monetary items, or on reporting such monetary items at rate different from those at which they were initially recorded during the year, or reported in previous financial statements are recognized as income or expense in the statement of profit and loss in the year in which they arise.

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