HCL TECHNOLOGIES

INTRODUCTION
HCL Technologies Limited is a global IT services company, headquartered
in Noida, Uttar Pradesh, India. Originally there search and development division of HCL
Limited, it emerged as an independent company in 1991 when HCL Limited ventured into the
software services business. HCL Technologies (often called Hindustan Computers Limited)
offers services including IT consulting, enterprise transformation, remote infrastructure
management, engineering and R&D, and business process outsource (BPO).
The company has offices in 31 countries, and operates across a number of industry
verticals including aerospace and defence, automotive, consumer electronics, energy and
utilities, financial services, government, independent software vendors, industrial
manufacturing, life sciences and healthcare, media and entertainment, mining and natural
resources, oil and gas, public services, retail and consumer, semiconductor, server and
storage, telecom, and travel, transportation, logistics and hospitality.
HCL Technologies is on the Forbes Global 2000 list and is one of Asias Fab 50
Companies. It is among the top 20 largest publically traded companies in India and had a
market capitalization of $22.1 billion as of May 2015. HCL Technologies, along with its
subsidiaries, had consolidated revenues of $6.0 billion as of August 2015.

Formation
HCL Technologies is one of the four companies under HCL Corporation, the second
company being HCL Info systems. In February, 2014 HCL forayed into healthcare with the
launch of a new venture, HCL Healthcare. HCL Talent Care is the fourth and newest venture
of HCL Corporation.
HCL Technologies began as the R&D Division of HCL Enterprise, a company which
was a major contributor in the development and growth of the IT and computer industry in
India. HCL Enterprise delivered several firsts an indigenous microcomputer in
1978, a Relational Database Management System (RDBMS), a networking OS and a clientserver architecture in 1983, and a fine-grained multiprocessor UNIX installation in 1989. On

12 November 1991, HCL Technologies was spun off as a separate unit to mark the companys
arrival in the software services arena.
HCL Technologies was originally incorporated as HCL Overseas Limited. The name
was changed to HCL Consulting Limited on 14 July 1994. On 6 October 1999, the company
was renamed as HCL Technologies Limited for a better reflection of its activities.
The period between 1991 and 1999 saw the company expand its software
development capacities, building one of the largest set-ups in India. It was also around this
time that the company spread its operations to the US, European and APAC markets.

VISION AND MISSION STATEMENT

Vision
"To be the technology partner of choice for forward looking customers by collaboratively
transforming technology into business advantage."

Mission
"We will be the employer of choice and the partner of choice by focusing on our stated values

of Employees First, Trust, Transparency, Flexibility and Value Centricity."

CORE VALUES

To uphold the dignity of the individual.

To honour all commitments.
Commitment to quality, innovation and growth in every endeavour.
To be responsible corporate citizens.

BUSINESS LINES
1. Applications Services: This division delivers integrated transformation services for
the applications portfolio of companies. Its technical expertise is organized around 12
horizontal capabilities and draws upon domain expertise in consumer, manufacturing,
life sciences, healthcare, public, and financial services domains. The division has

strategic alliances with leading technology solution providers, and undertakes

continuous R&D efforts to unlock newer innovations.
2. Business Services: The division provides Next-Gen BPO services across industries. It
consists of a team of 14,000 professionals, operating out of state-of-the-art delivery
centres spread across India, USA, Europe, Ireland, UK, Latin America and the
Philippines. The company uses its integrated global delivery model to ensure
seamless operations across geographies. It has also launched EFaaS (Enterprise
Functions as a Service), aimed at transforming enterprise functions while driving
significant savings on the total cost of operations.
3. Engineering and R&D Services (ERS): This division is focused on providing
comprehensive engineering and R&D services and solutions in hardware and
software product engineering across industry verticals. ERS is the largest engineering
services provider in India and is responsible for driving Thought Leadership
initiatives, and targets areas like Internet of Things (IoT), Big Data Analytics, Social
Media, Digitalization and Product Intelligence.
4. Infrastructure Management Services (IMS): This division manages mission-critical
IT environments and addresses the IT infrastructure requirements of an enterprise. It
implements the Enterprise of the Future (EOF) framework to enable companies
transition from legacy technologies and operating models to digital-ready, agile
enterprise technology infrastructure. This reduces Total Cost of Ownership (TCO)
across seven strategic axes of transformation. Other key offerings by the group
include: Next Gen Workplace Services, Next Gen Network Services, Information
Security and GRC Services, Enterprise Platform Services, Business Service
Management, Service Integration Management, Integrated Operations Services across
Enterprise and Digital, and Technology Transformation Services.

GOVERNANCE
As newspapers the world-over splash headlines of corporate mismanagement and
accounting adventures, HCL prides itself in maintaining the highest level of integrity in
corporate practices and governance. Our corporate governance framework is value centric
and ensures fairness, accountability and most importantly - transparency. By functioning

ethically and by pursuing profitability while embracing all the laws and regulations, we make
sure that our stakeholders always feel proud at being associated with HCL.

The Framework

Strictly adheres to Security & Exchange Board of India (SEBI) guidelines - Clause 49

Is certified by Statutory Auditors

Complies with Organization of Economic & Corporate Development (OECD)

Principles

Adheres to Corporate Governance Guidelines 2000

HCL has an audit committee made up of only Independent Directors, and also has a
compensation committee.

HCL works with the Nomination Committee, which does succession planning for
positions such as CEO, COO and CFO.

There is a Risk Management Committee, which comprises of the CEO and other
Independent Directors who are responsible for identifying, evaluating and mitigating
operational, strategic and external environmental risk.

For the sake of shareholders HCL introduced several new initiatives such as: strict
norms with a no-trading window for 14 days prior to the declaration of the quarterly
results; audit of all assets of the company and assets like cash & cash equivalence;
retirement age of Directors [fixed at 75 years] and the tenure of Independent Directors at
9 years; voluntary preparation of results using US GAAP in addition to Indian GAAP;
review by one more Big 4 auditor; and introduced the twin audit system.

HCL is fully compliant with OECD measures and recommendations from Corporate
Governance guidelines 2000.

THE STAKEHOLDERS
While their good governance practices are getting attention, we are more concerned
with whether our customers believe in us; whether they are able to rely on us for long-term
engagements and complex service delivery; and whether they can depend on our people to
create value for them. This is what constantly redefines the purpose of our existence, of our
governance and of our ways of working.

A.

Investors and Shareholders:

To increase transparency we provide statutory disclosures and voluntary disclosures

of all kinds.

Disclosures include cash & cash equivalents, new customer wins, and treasury
investments.

HCL reports numbers on constant currency and also provides its distribution across
services and geos.

HCLs statutory auditor is PWC, and KPMG for due diligence. This twin audit is the
first of its kind in the industry - also work with E&Y for taxation.

A Analysts:

They allocate special dialogue days, have developed a dedicated portal for interaction
and hold strategy discussions periodically.

The annual Directions meet where the CEO of HCL Technologies interacts with all
employees to arrive at the strategic direction the company needs to take, and the HCL
Global Meet where our customers, investors and analysts all interact together in a free
flowing discussion, are just two examples of how transparency has become a part of the
HCL culture.

A Customers:

HCL has developed a single interface, which is called the Service Delivery Platform
where customers can access and analyze all kinds of information about projects; people,
performance and can even raise a service ticket.

Other initiatives include the Value Portal that captures innovative ideas and
implements cost savings and performance improvement, C-SATsurveys to get regular
feedback on customer expectations and HCL targets; the HCL Global Meet where global
thought leaders and customers convene and debate on current and future business

issues; Advisory Councils that allow top customers advise HCL on areas of
improvement; and GRRP that encourages shared ownership both in rewards as well as
risk.
A Partnerships and joint ventures:

They have over 150 years of partnerships with the Global 500 companies.

They have successful JVs with some of the most respected technology firms in the
world

A Employees

Our Employees First philosophy enables employee-centric initiatives such as the

Five Fold Path to Individual Enlightenment. It ensures that our employees are informed,
involved, engaged, recognized and transformed for larger purposes and perspectives.

The Employees First transformational initiative is a renowned case study at Harvard

Business School

Accolades on Transparency

GMI has rated us at 6 compared to our peers at 4.1 on parameters of accountability

and disclosures.

Business World has placed us third among 500 listed companies for confidence on
reported numbers.

Asiamoney voted HCL as the best company for investor relations in India.

To sum it up, all the rules and regulations are imperative. But what is pivotal is that we
continue to create value for our customers and provide dynamic solutions in an honest and
accountable manner.

ANALYSIS OF FINANCIAL STATEMENTS

TECHNIQUES OF FINANCIALSTATEMENTS

 Trend percentage
Comparative statement
Common size analysis
Ratio analysis

TREND PERCENTAGE:
Trend percentage is a method of analyzing information obtained over an extended
period

by

choosing

a baseline period

(usually

the

earliest

year)

and

stating

the data associated with subsequent periods as a percentage of that period. The goal is to
calculate and analyze the amount change and percent change from one period to the next.
Trend percentage = (Current year / Base year)*100

PARTICULARS

2012

2013

2014

Net Sales

100

140.53

131.79

Other Income

100

157.00

139.53

Stock Adjustments

100

(-30.29)

(-25.40)

Total Income

100

141.38

186.13

100

139.41

191.30

Income

Expenditure
Raw Materials

Power & Fuel Cost

100

Employee Cost

100

117.98

130.61

Miscellaneous Expenses

100

125.14

152.02

Total Expenses

100

124.29

143.17

TREND PERCENTAGE OF HCL TECHNOLOGIES FOR LAST 3

YEARS

Interpretation
The above table shows that the net sales of the year 2014 has decreased compared to
the year 2013 by 9%, as due to decrease in sales the income has also decreased by nearly
18% and following this the expenditure has also raised from 2013 to 2014. The employee
cost has also been raised by 14% and the total expense has risen by 20%.
This shows the company is not performing efficiently compared to its previous year
as the income is decreasing and expenses are increasing, which could lead a bigger loss to the
company.
The company has to find some techniques to control its cost so that they can reach the
break even.

200
180
160
140
120
100
80
60
40
20
0

2012 100 100 100

2013 140.53 157 (-30.29)

p
Em

To
ta

In

lo
ye
e

co
m

os

2014 131.79 139.53 (25.40)

COMPARATIVE STATEMENT:
A statement which compares financial data from different periods of time.
The comparative statement lines up a section of the income statement and a balance
sheet with its corresponding section from a previous period.

COMPARATIVE STATEMENT OF HCL TECHNOLOGIES OF

THE YEAR 2012-2013
INCREASE OR
DECREASE IN
%

2012

2013

INCREASE OR
DECREASE

Net Sales

8907.22

12517.82

3610.6

40.52

Other Income

300.86

472.38

171.52

57.00

Stock Adjustments

(-25.85)

(-7.83)

(-18.02)

(-69.70)

Total Income

9182.28

12982.37

3800.14

41.38

PARTICULARS
Income

Expenditure

Raw Materials

180.51

251.66

71.09

39.36

Power & Fuel Cost

00.00

201.30

201.30

00

Employee Cost

3923.06

4628.61

705.55

17.98

Miscellaneous Expenses

2267.58

2837.26

570.11

25.14

Total Expenses

6371.15

7919.26

1602.11

25.14

Interpretation
From the above table we can say that the net sales of the year 2013 have increased
compared to the year 2012 by 40% resulting to increase in the total income by 41.38%.
The cost of raw material has been increased by 39%, employee cost by 18%and total
expense by 25%.
This shows that the increase in percentage of the total income is more than the
percentage of rise in total expenditure.

COMPARATIVE ANALYSIS OF 2012-13

To
ta
lE
xp
en
se
s

Co
st
pl
oy
ee
Em

M
at
er
ia
ls
Ra
w

To
ta
lI
nc
om

45
40
35
30
25
20
15
10
5
0

COMPARATIVE STATEMENT OF HCL TECHNOLOGIES OF

THE YEAR 2013-2014

2013

2014

INCREASE OR
DECREASE

INCREASE
OR
DECREASE
IN %

12517.82

16497.37

3979.55

31.79

Other Income

472.38

659.12

186.74

39.53

Stock Adjustments

(-7.83)

(-64.75)

(-56.92)

7.26

12982.37

17091.74

4109.37

31.65

Raw Materials

251.66

345.37

93.71

37.23

Power & Fuel Cost

201.30

205.15

3.85

1.91

Employee Cost

4628.61

5123.95

495.34

10.70

Miscellaneous Expenses

2837.26

3447.26

609.57

21.48

Total Expenses

7919.26

9121.73

1202.47

15.18

PARTICULARS

Income
Net Sales

Total Income
Expenditure

Interpretation
From the above table it can be said that the net sales has risen by 31.72% which is less
compared to the previous year. The Total income of the hcl for the year 2014 is raised to
31.65%.
The cost of raw materials, employee cost etc. is has increased but still the percentage
of risen is lower compared to the previous year.

COMPARATIVE STATEMENT OF 2013-14

Income

Stock Adjustments

Net Sales

5%

11%

8%

Other Income

16%

Total Income
20%

1%

Raw Materials

Expenditure

19%

Power & Fuel

4%Cost

Employee Cost

16%

Miscellaneous Ex penses

Total Expenses

COMPARATIVE BALANCE SHEET OF HCL OF THE YEAR 2012-2013

ASSETS SIDE

PARTICULARS

Cash and cash equivalents

Short term investments
Total cash & short term investments
Accounts receivables
Notes receivables
Other receivables
Total receivables
Inventory
Prepaid expenses
Deferred tax assets
Other current assets
Total current assets
Gross property plant & equipment
Accumulated depreciation
Net property plant & equipments
Goodwill
Long term investment
Accounts receivables long term
Deferred tax assets long term
Deferred charges long term

2012

2013

INCREASE
OR
DECREASE

350.10
98.20
448.30
992.80
12.70
2.00
1007.50
40.70
35.40
00.00
103.10
1635.10
885.90
(-437.1)
448.80
789.50
42.60
51.90
118.90
51.10

123.30
592.40
715.7
1076.1
00.00
24.70
1100.80
39.00
48.30
65.50
227.20
2199.50
990.5
(-531.4)
459.4
729.9
9.8
50.8
137.3
70.30

(-226.80)
494.20
267.40
83.30
(-12.7)
22.70
93.30
(-1.70)
12.90
65.55
124.10
564.40
104.60
(-94.30)
10.60
(-59.6)
(-32.8)
(-1.1)
18.40
19.20

INCREASE
OR
DECREASE
IN %

(-64.78)
503.25
59.64
8.39
100
135.0
9.26
(-4.17)
36.44
0
120.36
34.51
11.80
21.57
2.36
(-7.54)
(-76.99)
(-2.119)
15.47
37.57

Other intangibles
Other long term
Total long term

25.80
132.80
3296.70

42.20
85.60
3580.9

16.40
(-47.20)
284.20

63.56
(-35.54)
8.620

INTREPRETATION
The above balance sheet shows the variation in the assets and liabilities between the 2
years i.e. 2012 and 2013. In this the cash and cash equivalents has decreased by 67%
followed by rise in total receivables by 9%, Inventory decreased by 4% and total current
asset raised by 34%%.
Long term investment has been decreased by 76%, other tangible assets rose by
63.37% and finally total long term asset by 8%.

120000
100000
80000
60000
Inc OR Dec in Rs.

40000

Inc OR Dec in %

20000
0
-20000

1 2 3 4 5 6 7 8 9 101112131415161718192021

-40000
-60000

COMPARTIVE BALANCE SHEET OF THE YEAR 2012-2013

LIABILITY SIDE

PARTICULARS

2012

2013

INCREASE
OR
DECREASE

Accounts payable
Accrued Expenses
Short- term borrowings
Current position of the long term debts
Current position of capital lease
Current income tax paying
Other current liabilities
Unearned revenue currently
Total current liability
Long term debts
Capital lease
Minority interest
Unearned revenue non-current
Pension & other post revenue benefits
Deferred tax liability non-current
Other non- current liabilities
Total liability
Common stock
Additional paid in capital
Retained earnings
Comprehensive Income
Total common equity
Total equity
Total liability and equity

34.40
459.30
81.80
117.40
11.70
146.90
164.80
123.60
117.10
159.20
34.50
0.20
2.20
35.90
00.00
57.00
1527.90
24.90
318.20
1190.00
235.50
1768.60
1768.60
3296.70

84.70
529.40
21.60
20.10
15.20
124.20
234.50
103.20
1128.10
90.70
43.50
00.00
78.00
00.00
13.20
102.40
1473.90
34.50
702.50
2131.40
(-461.40)
2407.00
2407.00
3580.90

50.30
70.10
(-60.20)
(-97.30)
3.50
(-22.70)
69.70
(-20.40)
(-50.00)
(-68.50)
9.00
00.00
75.80
(-35.90)
13.20
45.40
(-54.00)
9.60
384.30
941.40
(-696.90)
638.4
638.4
284.20

INCREASE
OR
DECREASE
IN %

46.22
15.26
(-73.59)
(-82.87)
29.91
(-15.54)
42.29
(-16.50)
(-4.244)
(-43.02)
26.08
00.00
344.54
00.00
00.00
79.64
-3.53
38.55
120.77
79.10
(-295.93)
36.09
36.09
86.20

Interpretation:
The above table shows the liability side of the comparative statement for the year
2012-13, accounts payable has raised to 46%, Accrued expenses has raised to 15%, the short
term borrowing has reduced to 73%, followed by decrease in the total current liability by
4.5% which is good sign.
The total liability and equity is raised to 86%.

100
90

86.2

80
70
60
50
40
30
20

36.09

36.09

Total common equity

Total equity

10
0

Total liability and equity

COMPARATIVE BALANCE SHEET OF HCL OF THE YEAR 2013-2014

ASSETS SIDE

PARTICULARS

Cash and cash equivalents

2013

2014

INCREASE
OR
DECREASE

123.30

169.6

46.3

INCREASE
OR
DECREASE
IN %

37.55

Short term investments

Total cash & short term investments
Accounts receivables
Notes receivables
Other receivables
Total receivables
Inventory
Prepaid expenses
Deferred tax assets
Other current assets
Total current assets
Gross property plant & equipment
Accumulated depreciation
Net property plant & equipments
Goodwill
Long term investment
Accounts receivables long term
Deferred tax assets long term
Deferred charges long term
Other intangibles
Other long term
Total long term

592.40
715.7
1076.1
00.00
24.70
1100.80
39.00
48.30
65.50
227.20
2199.50
990.5
(-531.4)
459.4
729.9
9.8
50.8
137.3
70.30
42.20
85.60
3580.9

1407.00
1576.50
1340.60
00.00
29.30
1369.90
20.30
60.00
75.10
193.40
3295.20
1123.10
(-500.30)
522.80
518.70
2.70
55.20
145.40
62.30
37.40
93.90
5066.00

814.60
860.80
264.50
00.00
4.60
269.10
(-18.70)
11.70
9.60
(-33.80)
1095.70
132.60
31.10
63.40
(-211.2)
(-7.10)
4.40
8.10
(-8.00)
(-4.80)
8.30
1485.10

137.50
120.27
24.57
00.00
18.62
24.44
47.94
24.22
14.65
14.87
49.80
13.38
5.85
13.80
28.93
72.44
8.66
5.89
11.37
11.37
9.69
41.47

Interpretation:
The above balance sheet shows the variation in the assets between the 2 years i.e.
2013 and 2014. In this the cash and cash equivalents has raised by 37.77% followed by total
receivables by 24.44%, Inventory by 48% and total current asset by 49.80%.
Long term investment has been raised by 72%, other tangible assets by 11.37%, long
term asset by 9.96% and finally total long term asset by 41.47%.

comparative balance sheet of 2013-14- asset side

in
ta
ng
ib
le
s
O
th
er

G
oo
dw
ill

cu
rre
nt
as
se
ts

O
th
er

re
ce
iv
ab
le
s
O
th
er

Ca
sh

an
d

ca
sh

eq
ui
va
le
nt
s

140
120
100
80
60
40
20
0

COMPARTIVE BALANCE SHEET OF THE YEAR 2013-2014

LIABILITY SIDE

PARTICULARS

2013

2014

INCREASE
OR
DECREASE

Accounts payable
Accrued Expenses
Short- term borrowings
Current position of the long term debts
Current position of capital lease
Current income tax paying

84.70
529.40
21.60
20.10
15.20
124.20

104.90
619.00
34.20
101.60
15.70
145.60

20.20
89.60
12.60
81.50
0.50
21.40

INCREASE
OR
DECREASE
IN %

23.84
16.92
58.33
40.50
3.28
17.18

Other current liabilities

Unearned revenue currently
Total current liability
Long term debts
Capital lease
Minority interest
Unearned revenue non-current
Pension & other post revenue benefits
Deferred tax liability non-current
Other non- current liabilities
Total liability
Common stock
Additional paid in capital
Retained earnings
Comprehensive Income
Total common equity
Total equity
Total liability and equity

234.50
103.20
1128.10
90.70
43.50
00.00
78.00
00.00
13.20
102.40
1473.90
34.50
702.50
2131.40
(-461.40)
2407.00
2407.00
3580.90

236.00
130.70
1481.90
4.60
28.70
00.10
98.20
00.00
11.50
104.40
1729.40
34.60
718.30
2956.10
(-372.40)
3336.50
3336.60
5066.00

1.50
27.50
353.80
(-86.10)
(-14.80)
0.10
20.20
00.00
(-1.70)
(-16.00)
255.50
00.00
0.10
1.38
89.00
929.50
929.60
1485.10

0.63
26.64
31.36
(-94.92)
(-34.02)
00.00
25.89
00.00
(-12.87)
(-13.28)
17.33
00.00
0.014
0.064
(-19.28)
38.61
38.62
41.47

Interpretation:
The above table shows the liability side of the comparative statement for the year
2013-14, accounts payable has raised to 23%, which is better than the previous year. Accrued
expenses has risen to 16.6%, the short term borrowing has raised to 58%, followed by
increase in the total current liability by 0.63% which is good sign.
The total liability and equity is raised 41.5%.

comparative statement of 2013-14 -liability side

42
41.5
41
40.5
40
39.5
39
38.5
38
37.5
37

Total common equity

Total equity

Total liability and equity

COMMON SIZE ANALYSIS:

A company financial statement that displays all items as percentages of a common
base figure. This type of financial statement allows for easy analysis between companies or
between time periods of a company. Formatting financial statements in this way reduces the
bias that can occur when analyzing companies of differing sizes. It also allows for the
analysis of a company over various time periods, revealing, for example, what percentage of
sales

is cost

of

goods

sold and

how

that

value

has

changed

over

time.

COMMON SIZE STATEMENT FOR THE YEAR 2012 -2013

PARTICULARS

2012

2013

Net Sales

8907.22

100

12517.82

100

Other Income

300.86

3.37

472.38

3.77

Stock Adjustments

(-25.85)

(-0.29)

(-7.83)

(-0.062)

Total Income

9182.28

103.08

12982.37

103.71

Raw Materials

180.51

2.02

251.66

2.01

Power & Fuel Cost

00.00

0.00

201.30

1.608

Employee Cost

3923.06

49.04

4628.61

36.97

Miscellaneous Expenses

2267.58

25.45

2837.26

22.66

Total Expenses

6371.15

71.52

7919.26

63.26

Income

Expenditure

Interpretation
Under common size statement by keeping sales as 100% for the two years we can see
the variation between other items. The total income of 2012 is 103.08% and for 2013 is
103.71% which is nearly same. The total expenditure for 2012 is 71.52 %and for 2013 is
63.26% which shows the expenses has been decreased.

120
100
80
60
2012 100 3.37 (-0.29)

40

2013 100 3.77 (-0.062)

20

To
ta
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xp
en
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s

Co
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pl
oy
ee
Em

M
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Ra
w

To
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nc
om
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COMMON SIZE STATEMENT OF THE YEAR 2013-2014

PARTICULARS

2013

2014

12517.82

100

16497.37

100

Other Income

472.38

3.77

659.12

3.99

Stock Adjustments

(-7.83)

(-0.062)

(-64.75)

(-0.39)

12982.37

103.71

17091.74

103.60

Raw Materials

251.66

2.01

345.37

2.09

Power & Fuel Cost

201.30

1.608

205.15

1.24

Employee Cost

4628.61

36.97

5123.95

31.05

Miscellaneous Expenses

2837.26

22.66

3447.26

20.85

Total Expenses

7919.26

63.26

9121.73

55.29

Income
Net Sales

Total Income
Expenditure

Interpretation
Under common size statement by keeping sales as 100% for the two years we can see
the variation between other items. The total income of 2013 is 103.71% and for 2014 is
103.60% which is nearly same. The total expenditure for 2013 is 63.26 %and for 2014 is
55.29% which shows the expenses has been decreased.

common size statement for 2013-14

Miscellaneous Expenses; 27%

Total Income; 45%
Employee Cost; 10%
Power & Fuel Cost; 16% Expenditure; 1%
Raw Materials; 1%

COMMOM SIZE BALANCE SHEET OF HCL OF THE YEAR 2012-2013

ASSETS SIDE
PARTICULARS

Cash and cash equivalents

Short term investments
Total cash & short term investments
Accounts receivables
Notes receivables
Other receivables
Total receivables
Inventory
Prepaid expenses
Deferred tax assets
Other current assets
Total current assets
Gross property plant & equipment
Accumulated depreciation
Net property plant & equipments
Goodwill
Long term investment
Accounts receivables long term
Deferred tax assets long term
Deferred charges long term
Other intangibles
Other long term
Total long term

2012

2013

350.10
98.20
448.30
992.80
12.70
2.00
1007.50
40.70
35.40
00.00
103.10
1635.10
885.90
(-437.1)
448.80
789.50
42.60
51.90
118.90
51.10
25.80
132.80
3296.70

10.61
2.97
13.59
30.11
0.38
0.060
30.56
1.234
1.073
00.00
3.12
49.59
26.87
(-13.25)
13.61
23.94
1.29
1.57
3.60
1.55
0.78
4.02
100

123.30
592.40
715.7
1076.1
00.00
24.70
1100.80
39.00
48.30
65.50
227.20
2199.50
990.5
(-531.4)
459.4
729.9
9.8
50.8
137.3
70.30
42.20
85.60
3580.9

3.44
16.54
19.98
30.05
00.00
0.68
30.74
1.08
1.34
1.84
6.34
61.42
27.66
(-14.82)
12.82
22.14
0.27
1.41
3.83
1.96
1.17
2.39
100

INTREPRETATION
The above balance sheet shows the variation in the assets and liabilities between the 2
years i.e. 2012 and 2013. In this the cash and cash equivalents for 2012 it is 10.61% and for
2013 it is 3.44%. Long term investment for 2012 is1.29% and for 2013 it is 0.27%, other
tangible assets for 2012 is 0.78% and for 2013 it is 1.17%.

common size statement of 2012-13

100
90
80
70
60
50
40
30
20
10

O
th
er

in
ta
ng
ib
le
s

te
rm

Ac
co
un
ts

et
pr
op
er
ty

pl
an
t&

re
ce
iv
ab
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s

lo
ng

eq
ui
pm

en
ts

COMMON SIZE BALANCE SHEET OF THE YEAR 2012-2013

LIABILITY SIDE

PARTICULARS

Accounts payable

2012

2013

34.40

1.04

84.70

2.36

Accrued Expenses
Short- term borrowings
Current position of the long term debts
Current position of capital lease
Current income tax paying
Other current liabilities
Unearned revenue currently
Total current liability
Long term debts
Capital lease
Minority interest
Unearned revenue non-current
Pension & other post revenue benefits
Deferred tax liability non-current
Other non- current liabilities
Total liability
Common stock
Additional paid in capital
Retained earnings
Comprehensive Income
Total common equity
Total equity
Total liability and equity

459.30
81.80
117.40
11.70
146.90
164.80
123.60
117.10
159.20
34.50
0.20
2.20
35.90
00.00
57.00
1527.90
24.90
318.20
1190.00
235.50
1768.60
1768.60
3296.70

13.93
2.48
3.56
3.57
4.44
4.99
3.74
35.73
4.82
1.04
000.63
0.066
1.088
00.00
1.72
42.34
0.755
9.65
36.09
7.14
53.69
53.69
100

529.40
21.60
20.10
15.20
124.20
234.50
103.20
1128.10
90.70
43.50
00.00
78.00
00.00
13.20
102.40
1473.90
34.50
702.50
2131.40
(-461.40)
2407.00
2407.00
3580.90

14.78
0.60
0.56
0.42
3.46
6.54
2.88
31.50
2.532
1.21
00.00
2.17
00.00
0.36
2.85
41.16
0.96
19.61
59.52
(-12.88)
67.21
67.21
100

Interpretation
The table above shows the comparison percentage of two consecutive years. The total
current liability of 2012 is 35.50% and for 2013 is 31.50%, the other non- current liability for
2012 and 2013 are 1.72% and 2.85% respectively. Therefore total liability of 2012 is 42.34%
and 2013 is 41.16% which is reduced by 1%.

common size statement of 2012-13 - liability side

100
80
60
40
20
0

Total common equity

Total equity

Total liability and equity

COMMON SIZE BALANCE SHEET OF HCL OF THE YEAR 2013-2014

ASSETS SIDE
PARTICULARS

Cash and cash equivalents

Short term investments
Total cash & short term investments
Accounts receivables
Notes receivables
Other receivables
Total receivables
Inventory
Prepaid expenses
Deferred tax assets
Other current assets
Total current assets
Gross property plant & equipment
Accumulated depreciation
Net property plant & equipments
Goodwill
Long term investment
Accounts receivables long term
Deferred tax assets long term
Deferred charges long term
Other intangibles
Other long term
Total long term

2013

2014

123.30
592.40
715.7
1076.1
00.00
24.70
1100.80
39.00
48.30
65.50
227.20
2199.50
990.5
(-531.4)
459.4
729.9
9.8
50.8
137.3
70.30
42.20
85.60
3580.9

3.44
16.54
19.98
30.05
00.00
0.68
30.74
1.08
1.34
1.84
6.34
61.42
27.66
(-14.82)
12.82
22.14
0.27
1.41
3.83
1.96
1.17
2.39
100

169.6
1407.00
1576.50
1340.60
00.00
29.30
1369.90
20.30
60.00
75.10
193.40
3295.20
1123.10
(-500.30)
522.80
518.70
2.70
55.20
145.40
62.30
37.40
93.90
5066.00

3.34
27.77
31.11
26.46
00.00
0.57
27.04
0.44
1.18
1.48
3.81
65.04
22.16
(-9.87)
10.31
10.23
0.05
1.08
2.87
1.22
0.73
1.85
100

Intrepretation
The above balance sheet shows the variation in the assets and liabilities between the 2
years i.e. 2012 and 2013. In this the cash and cash equivalents for 2013 it is 3.44%% and for
2014 it is 3.34%. Long term investment for 2013 is 0.27% and for 2014 it is 0.05%, other
tangible assets for 2013 is 1.17% and for 2014 it is 0.73%.

Common size statement of 2013-14 - asset side

in
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ib
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s
O
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Ac
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et
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pl
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iv
ab
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eq
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pm

en
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te
rm

100
90
80
70
60
50
40
30
20
10
0

COMMON SIZE BALANCE SHEET OF THE YEAR 2013-2014

LIABILITY SIDE

PARTICULARS

2013

2014

Accounts payable
Accrued Expenses
Short- term borrowings
Current position of the long term debts
Current position of capital lease
Current income tax paying
Other current liabilities

84.70
529.40
21.60
20.10
15.20
124.20
234.50

2.36
14.78
0.60
0.56
0.42
3.46
6.54

104.90
619.00
34.20
101.60
15.70
145.60
236.00

2.07
12.21
0.67
2.00
0.30
2.89
4.65

Unearned revenue currently

Total current liability
Long term debts
Capital lease
Minority interest
Unearned revenue non current
Pension & other post revenue benefits
Deferred tax liability non current
Other non- current liabilities
Total liability
Common stock
Additional paid in capital
Retained earnings
Comprehensive Income
Total common equity
Total equity
Total liability and equity

103.20
1128.10
90.70
43.50
00.00
78.00
00.00
13.20
102.40
1473.90
34.50
702.50
2131.40
(-461.40)
2407.00
2407.00
3580.90

2.88
31.50
2.532
1.21
00.00
2.17
00.00
0.36
2.85
41.16
0.96
19.61
59.52
(-12.88)
67.21
67.21
100

130.70
1481.90
4.60
28.70
00.10
98.20
00.00
11.50
104.40
1729.40
34.60
718.30
2956.10
(-372.40)
3336.50
3336.60
5066.00

2.57
29.25
0.09
0.56
0.0019
1.92
00.00
0.22
2.06
34.13
0.68
14.17
58.35
(-7.35)
65.86
65.86
100

Interpretation
The table above shows the comparison percentage of two consecutive years. The total
current liability of 2013 is 31.50% and for 2014 is 29.25%, the other non- current liability for
2013 and 2014 are 2.85% and 2.06% respectively. Therefore total liability of 2013 is 41.16%
and 2014 is 34.13% which is reduced by 7%.

common size b/s -liability side of 2013-14

100
90
80
70
60
50
40
30
20
10
0

Total common equity

Total equity

Total liability and equity

RATIO ANALYSIS:
Ratios are relationship expressed in mathematical terms between figures which are
connected with each other in some manner.

CURRENT RATIO:
Working Capital Ratio or Solvency Ratio
Express the relationship between Current Assets & Current Liabilities.
Current Ratio = Current Assets / Current Liabilities
Standard Current Ratio = 2:1 is considered to be satisfactory.

CURRENT RATIO
3
2.5
2
1.5
1
0.5
0

CURRENT
RATIO

QUICK RATIO:
Quick Ratio = Liquid Asset / Current Liability
Acid Test Ratio.
Measures the ability of a company to use its near cash or quick assets to pay off its
debts.
An indicator of a companys short-term liquidity.

QUICK RATIO
3
2.4
2
1.76
1.42
1

NET PROFIT RATIO

The net profit percentage is the ratio of after tax profits to net sales. It reveals the
remaining profit after all costs of production , administration and financing have been
deducted from sales and income taxes recognized.

36.27
29.59

15.58

1
2

PAY OUT RATIO

The proportion of earnings paid out as dividends to shareholders, typically expressed as
percentage. The payout ratio can also be expressed as dividends paid out as proportion of
cash flow.

PAY OUT RATIO

3

2
4.78

1
1.32
1

2.63
2

WORKING CAPITAL TURNOVER RATIO

A measurement comparing the depletion of working capital to the generation of sales over
a given period. This provides some useful information as to how effectively a company
using working capital to generate sales.

WCTR

4.82

2.87
1.89

TOTAL ASSETS TURNOVER RATIO

The ratio of the value of a companys sales or revenues generated relative to the value
of its assets. The Asset Turnover ratio can often be used as an indicator of the
efficiency with which a company is deploying its assets in generating revenue.

TOTAL ASSET RATIO

1
0.98
1

0.76
2

0.54
3

DEBT RATIO
The debt ratio is defined as the ratio of total long-term and short-term debt to total
assets, expressed as a decimal or percentage. It can be interpreted as the proportion of
a company's assets that are financed by debt.

DEBT RATIO

3.53

3
2

0.91

0.56

1
1

OPERATING PROFIT RATIO

Its also known as operating margin ratio, its a profitability ratio that measures what
percentage of total revenues is made by operating income.

OPERATING PROFIT
44.31
36.67
28.18

1
2