A

FINAL PROJECT REPORT

ON

IMPACT OF EXCHANGE RATE ON SHARE

PRICE OF IT INDUSTREIS

[HCL, INFOSYS, WIPRO]

SUBMITTED FOR PARTIAL FULFILMENT OF

REQUIREMENT FOR THE AWARD OF DEGREE

OF

BACHLOR OF BUSINESS ADMINISTRATION

OF JHARKHAND RAI UNIVERSITY, RANCHI

SESSION 2015-2018

SUPERVISION TO:- SUBMITTED BY:-

PROF. ROSHAN KUMAR SUJIT TIGGA

DEPARTMENT- COMMERCE AND MANAGEMENT ROLL NO.-BB/15/003

BBA 6TH Semester

[1]
 DECLERATION

This is to certify SUJIT TIGGA , student of Jharkhand Rai University Ranchi has Completed her
this project at Jharkhand Rai University, Ranchi On Topic “IMPACT OF EXCHANGE RATE
ON IT INDUSTRIES SHARE PRICE”. And submitted the report in partial fulfillment of
Bachelor of Business Administration Year 2015-2018.

Name:-

Date:-

Place:-

[2]
 CERTIFICATE OF GUIDE

This is certify the project report is the outcome of the project work entitled IMPACT OF
EXCHANGE RATE ON IT INDUSTREIS SHARE PRICE Carried out by SUJIT TIGGA
bearing enrolment no. BB/15/003 carried by under my guided and supervision for the awaked
degree in bachelor of business administration of Jharkhand Rai University, Ranchi.

I. Embodies the work of the candidate her

II. Has duly been Completed
III. Full fill the required of the ordinance relating to BBA degree of the University and
IV. Is up to desired standard for the purpose of which is submitted

Name:-Prof.Roshan Kumar

Designation-(Assistant Professor)

Department- Commerce And Management

Jharkhand Rai University, Ranchi

[3]
 ACKNOWLEDGEMENT

I am using this opportunity to express my gratitude to everyone who supported me throughout the
course of this BBA project. I am thankful for their aspiring guidance, invaluably constructive
criticism and friendly advice during the project work. I am sincerely grateful to them for sharing
their truthful and illuminating views on a number of issues related to the project.

I express my warm thanks to Prof. Roshan Kumar for their support and guidance at this final
project Topic EXCHANGE RATE FLUCTUATION ON IT INDUSTRY.

[4]
Table of Content

Chapter. Title. Page No.

1. Introduction

1.1 Introduction of exchange 8-11

rate
11-13
1.2 Coefficient of
correlation& significance 13-18
1.3 Introduction of Wipro
1.4 Introduction of Infosys 19-22
1.5 Introduction of HCL
22-27
2.

Research Methodology 28- 32

3. Data analysis And

interpretation

3.1Infosys &$ 36-40

3.2 Wipro &$ 41-42

3.3 HCL &$ 43-44

3.4 Suggestion &

recommendation 45

3.5 conclusion 46
47
3.6 bibliography

[5]
1.CHAPTER

Introduction

[6]
1.1 Introduction of Exchange Rate
1.2 Coefficient of correlation & significance

1.3 Introduction of Wipro

1.4 Introduction of Infosys

1.5 Introduction of HCL

[7]
 1.1Definition of Exchange rate

Exchange Rate is the price of one currency in terms of another currency or An Exchange Rate is
the Rate at Which One Currency will Be Exchanged For Another. It is also regarded as the value
of one country’s currency in relation to Another Currency.

For Example:- an interbank exchange rate of 65 INR to the United States Dollar means that 65
INR will be exchanged for each US$1. In this Case it is said that the price of a dollar in relation
to INR is 65Rs.

Exchange Rate are determined in the foreign exchange market, Which is open to a wide range of
different types of buyers and sellers, and where currency trading is continuous:24 hours a day
except weekends,

Overview of Exchange Rate:-a higher currency makes a country’s Exports more expensive and
imports cheaper in foreign market. A lower currency makes a country’s exports cheaper and its
import more expensive in foreign market. A higher exchange rate can be expected to lower the
country’s balance of trade, while a lower exchange rate would increase it.

[8]
 Determinants of Exchange Rate

Numerous factors determine exchange rates, and all are related to the trading relationship
between two countries.

1.Differentials in Inflation

As a general rule, a country with a consistently lower inflation rate exhibits a rising currency
value, as its purchasing power increases relative to other currencies. During the last half of the
20th century, the countries with low inflation included Japan, Germany and Switzerland, while
the U.S. and Canada achieved low inflation only later. Those countries with higher inflation
typically see depreciation in their currency in relation to the currencies of their trading partners.
This is also usually accompanied by higher interest rates.

2. Differentials in Interest Rates

Interest rates, inflation and exchange rates are all highly correlated. By manipulating interest
rates, central banks exert influence over both inflation and exchange rates, and changing interest
rates impact inflation and currency values. Higher interest rates offer lenders in an economy a
higher return relative to other countries. Therefore, higher interest rates attract foreign capital and
cause the exchange rate to rise. The impact of higher interest rates is mitigated, however, if
inflation in the country is much higher than in others, or if additional factors serve to drive the
currency down. The opposite relationship exists for decreasing interest rates – that is, lower
interest rates tend to decrease exchange rates.

3. Current-Account Deficits

The current account is the balance of trade between a country and its trading partners, reflecting
all payments between countries for goods, services, interest and dividends. A deficit in the
current account shows the country is spending more on foreign trade than it is earning, and that it

[9]
is borrowing capital from foreign sources to make up the deficit. In other words, the country
requires more foreign currency than it receives through sales of exports, and it supplies more of
its own currency than foreigners demand for its products. The excess demand for foreign
currency lowers the country's exchange rate until domestic goods and services are cheap enough
for foreigners, and foreign assets are too expensive to generate sales for domestic interests.

4. Public Debt

Countries will engage in large-scale deficit financing to pay for public sector projects and
governmental funding. While such activity stimulates the domestic economy, nations with large
public deficits and debts are less attractive to foreign investors. The reason? A large debt
encourages inflation, and if inflation is high, the debt will be serviced and ultimately paid off
with cheaper real dollars in the future.

In the worst case scenario, a government may print money to pay part of a large debt, but
increasing the money supply inevitably causes inflation. Moreover, if a government is not able to
service its deficit through domestic means (selling domestic bonds, increasing the money supply),
then it must increase the supply of securities for sale to foreigners, thereby lowering their prices.
Finally, a large debt may prove worrisome to foreigners if they believe the country risks
defaulting on its obligations. Foreigners will be less willing to own securities denominated in that
currency if the risk of default is great. For this reason, the country's debt rating (as determined by
Moody's or Standard & Poor's, for example) is a crucial determinant of its exchange rate.

5. Terms of Trade

A ratio comparing export prices to import prices, the terms of trade is related to current accounts
and the balance of payments. If the price of a country's exports rises by a greater rate than that of
its imports, its terms of trade have favorably improved. Increasing terms of trade shows greater
demand for the country's exports. This, in turn, results in rising revenues from exports, which
provides increased demand for the country's currency (and an increase in the currency's value). If

[10]
the price of exports rises by a smaller rate than that of its imports, the currency's value will
decrease in relation to its trading partners.

6. Political Stability and Economic Performance

Foreign investors inevitably seek out stable countries with strong economic performance in
which to invest their capital. A country with such positive attributes will draw investment funds
away from other countries perceived to have more political and economic risk. Political turmoil,
for example, can cause a loss of confidence in a currency and a movement of capital to the
currencies of more stable countries.

1.2 coefficient of correlation

The coefficient of correlation

The Coefficient of correlation measure the degree of relationship between two sets of figures. As
the reliability of estimates depends upon the closeness of the relationship it is imperative that at
most care be taken while interpreting the value of coefficient of correlation otherwise fallacious
conclusion be drown.

Unfortunately, the interpretation of the coefficient of correlation depends vary much on

experience. The full significance of r will only be grasped after working out a number of
correlation problems and seeing the kind of data that give rise to various values of r. the
investigator must know his data thoroughly in order to avoid errors of interpretation. He must be
familiar, or become familiar, with all the relationship and theory which bear upon the data and
should reach a conclusion based on logical reasoning and intelligent investigation on significantly
related matter. However, the following general guidelines are given which would help in
interpreting the value of r.

1. When r= +1, it means there is perfect positive correlation between the variable.

2. When r= --1, it means there is perfect negative correlation between the variables.

[11]
3. When r= 0, it means there is no correlation between the variables, the variable are uncorrelated

4. The closer r is to +1 or –1, the closer the relationship, beyond this is not safe to go. The full
interpretation of r depends upon circumtances, one of which is the size of the sample. All that can
really be said that when estimating the value of one variable from the value of another; the higher
value of r, the better the estimate.

5. the closeness of relationship is not proportional to r. if the value of r is 0.8, it does not indicate
relationship twice as close as that of 0.4. it is in fact very much closer.

Significance of the study of correlation

The study of correlation is of immense use in practical life because of the following reason:

1. most of the variables show some kind of relationship between price and supply, income
and expenditure etc. with the help of correlation analysis we can measure in one figure the
degree of relationship exiting between the variables.
2. Once we know that two variables are closely related, we can estimate the value of one
variable given the value of another. This is done with the help of regression analysis
which is discussed in the next chapter.
3. Correlation analysis contributes to the economic behavior, aids in locating critically
important variables on which other depends, may to the economist the connection by
which disturbances spread and suggest to him the paths through which stabling force
become effective/.
In business, correlation analysis enables the executive to estimate the costs, sales, price
and other variables on the basis of some other series with which these cost, sales, or price
may be functionally related. Some of the guesswork can removed from decision when he
relationship between variables to be estimated and the one or more other variables on
which it depends are close and reasonably invariant.

[12]
 4. progressive development in the method of science and philosophy has been characterized
by increase In the knowledge of relationship or correlation. Nature have been found tp be
multiplicity of inter-related forces.

However it should noted that coefficient of correlation is one of the most widely used and also
one of the most widely abused statistical measures. It is abused in the sense that one sometimes
overlooks the fact that correlation measure nothing but the strength of linear relationship and that
it does not necessarily imply a relationship

1.3Introduction of Wipro

Early formative years

The company was incorporated on 29 December 1945 in Amalner, Maharashtra by Mohamed

Premji as 'Western India Vegetable Products Limited', later abbreviated to 'Wipro'. It was initially
set up as a manufacturer of vegetable and refined oils in Amalner, Maharashtra, India under the
trade names of Kisan, Sunflower, and Camel.

In 1966, after Mohamed Premji’s death, his son AzimPremji returned home from Stanford
University and took over Wipro as its chairman at the age of 21.

During the 1970s and 1980s, the company shifted its focus to new business opportunities in the
IT and computing industry, which was at a nascent stage in India at the time. On 7 June 1977, the
name of the company changed from Western India Vegetable Products Limited, to Wipro
Products Limited.

The year 1980 marked the arrival of Wipro in the IT domain. In 1982, the name was changed
from Wipro Products Limited to Wipro Limited. Meanwhile, Wipro continued to expand in the
consumer products domain with the launch of "Ralak" a Tulsi based family soap and "Wipro

[13]
Jasmine", a toilet soap. In 1988 Premji took a loan of 1 million dollar from Sonkar and Sons to
set up the project. Later the entire loan amount was waived.

1966–1992

In 1988, Wipro diversified its product line into heavy-duty industrial cylinders and mobile
hydraulic cylinders. A joint venture company with the United States' General Electric in the name
of Wipro GE Medical Systems Pvt. Ltd. was set up in 1989 for the manufacture, sales, and
service of diagnostic and imaging products. Later, in 1991, tipping systems and Eaton hydraulic
products were launched. The Wipro Fluid Power division, in 1992, developed expertise to offer
standard hydraulic cylinders for construction equipment and truck tipping systems. The market
saw the launch of the "Santoor" talcum powder and "Wipro Baby Soft" range of baby toiletries in
1990.

1994–2000

In 1995, Wipro set up an overseas design centre, Odyssey 21, for undertaking projects and
product developments in advanced technologies for overseas clients. Wipro Infotech and Wipro
Systems were amalgamated with Wipro in April that year. Five of Wipro's manufacturing and
development facilities secured the ISO 9001 certification during 1994–95. In 1999, Wipro
acquired Wipro Acer. Wipro became a more profitable, diversified corporation with new
products such as the Wipro SuperGenius personal computers (PCs). In 1999, the product was the
one Indian PC range to obtain US-based National Software Testing Laboratory (NSTL)
certification for the Year 2000 (Y2K) compliance in hardware for all models.

Wipro Limited joined hands with a global telecom major KPN (Royal Dutch telecom) to form a
joint venture company "Wipro Net Limited" to provide internet services in India. The year 2000
was the year Wipro launched solutions for convergent networks targeted at Internet and telecom
solution providers in the names of Wipro OSS Smart and Wipro WAP Smart.In the same year,
Wipro got listed on New York Stock Exchange. In early 2000 Wipro Vice Chairman Vivek Paul

[14]
and AzimPremji approached KPMG Consulting Vice Chairman Keyur Patel and CEO Rand
Blazer to form a mega-outsourcing joint venture between the two organizations.

2001–present

In February 2002, Wipro became the first software technology and services company in India to
be certified for ISO 14001 certification.Wipro also achieved ISO 9000 certification to become the
first software company to get SEI People Capability Maturity Model (PCMM) Level 5 in
2002.Wipro Consumer Care and Lighting Group entered the market of compact fluorescent
lamps, with the launch of a range of CFL, under the brand name of Wipro Smartlite. As the
company grew, a study revealed that Wipro was the fastest wealth creator for 5 years (1997–
2002).The same year witnessed the launch of Wipro’s own laptops with Intel's Centrino mobile
processor.Wipro also entered into an exclusive agreement with the owners of Chandrika for
marketing of their soap in select states in India. It set up a wholly owned subsidiary company viz.
Wipro Consumer Care Limited to manufacture consumer care and lighting products. In 2004
Wipro joined the billion dollar club. It also partnered with Intel for i-shiksha. The year 2006 saw
Wipro acquire cMango Inc., a US-based technology infrastructure Consulting firm Enabler, and a
Europe-based retail solutions provider. In 2007, Wipro signed a large deal with Lockheed Martin.
It also entered into a definitive agreement to acquire Oki Techno Centre Singapore Pte Ltd
(OTCS) and signed an R&D partnership contract with Nokia Siemens Networks in Germany.

In 2008 Wipro’s entered the clean energy business with Wipro Eco Energy. In April 2011, Wipro
signed an agreement with Science Applications International Corporation (SAIC) for the
acquisition of their global oil and gas information technology practice of the commercial business
services business unit. In 2012 Wipro acquired Australian Trade Promotions Management firm
Promax Applications Group (PAG) for $35 million. In 2012 Wipro employed more than 70,000
H-1B visa professional temporary workers in the United States.

In 2012 Wipro Ltd. announced the demerger of its consumer care, lighting, furniture,
infrastructure Engineering (hydraulics and water and medical diagnostic business into a separate
company to be named Wipro Enterprises Ltd. The merger became effective from 31 March 2013.

[15]
The demerged companies together contributed about 10% of the revenues of Wipro Limited in
previous financial year.

In 2014, Wipro signed a 10-year $1.2 billion contract with ATCO, a Canadian Energy & Utilities
corporation based out of Calgary, Alberta. This was the largest deal in Wipro's history.

In October 2016, Wipro announced that it was buying Appirio, an Indianapolis-based cloud
services company for $500 million.

Wipro Group of Companies

Western India Products Limited

Wipro Limited is a global provider of comprehensive IT solutions and services, including

Systems Integration, Consulting, Information Systems outsourcing, IT-enabled services, R&D
services.

Wipro entered into the technology business in 1981 and has over 140,000 employees and clients
across 54 countries. IT revenues were at $7.1 billion for the year ended 31 March 2015, with a
repeat business ratio of over 95%.

Wipro Consumer Care & Lighting

Wipro Consumer Care and Lighting (WCCLG), a business unit of Wipro Limited operates in the
FMCG segment dealing in consumable commodities. Established in 1945, its first product was
vegetable oil, later sold under the brand name "Sunflower Vanaspati". It sells personal care
products, such as Wipro Baby Soft and Wipro Safewash, toilet soaps Santoor and Chandrika as
well as Yardley. It sells lighting products, including Smartlite CFL,LED, and emergency lights.

Through product sales and acquisitions, Wipro Consumer Care and Lighting has grown steadily
in the FMCG segment.

[16]
since October 2000.

Wipro Infrastructure Engineering

Wipro Infrastructure Engineering is the hydraulics business division of Wipro Limited and has
been in the business of manufacturing hydraulic cylinders, truck cylinders, and their components
and solutions since 1976. This division delivers hydraulic cylinders to international OEMs and
represents the Kawasaki, Sun Hydraulics and Teijin Seiki range of hydraulic products in India. It
has entered into partnerships Kawasaki and aerospace giant EADS. In 2010 Wipro Infrastructure
Engineering was the second largest independent manufacturer of hydraulic cylinders in the world.

Wipro GE Medical Systems

Wipro GE Medical Systems Limited is Wipro’s joint venture with GE Healthcare South Asia. It
is engaged in the research and development of advanced solutions to cater to patient and
customer needs in healthcare. This partnership, which began in 1990, today includes gadgets and
equipment for diagnostics, healthcare IT solutions and services to help healthcare professionals
combat cancer, heart disease, and other ailments. There is complete adherence to Six Sigma
quality standards in all products.

Sustainability at Wipro

Wipro has been ranked 1st in the 2010 Asian Sustainability Rating (ASR) of Indian companies
and is a member of the NASDAQ Global Sustainability Index as well as the Dow Jones
Sustainability Index.

Listing and shareholding

[17]
Listing: Wipro's equity shares are listed on Bombay Stock Exchange where it is a constituent of
the BSE SENSEX index, and the National Stock Exchange of India where it is a constituent of
the S&P CNX Nifty.The American Depositary Shares of the company are listed at the NYSE

Shareholding: On 30 September 2013, 73.51% of the equity shares of the company were
owned by the promoters: AzimPremji, his family members, partnership firms in which he is a
partner and Trusts formed by him/his family. The remaining 26.49% shares are owned by others.

Shareholders (as on 20-January-2016) Shareholding

Promoter group led by AzimPremji 73.36%

Foreign Institutional Investors (FII) 10.68%

Indian Public 4.99%

Bodies Corporate 2.50%

Mutual Funds/UTI 1.90%

NRI 1.11%

Trusts/Others 0.77%

American Depositary Shares 2.30%

Total 100%

Employees

At the end of December 31, 2015, its employee strength was 170,664.Abid Ali Neemuchwala
was appointed as Wipro's CEO after T. K. stepped down in early 2016.

[18]
 1.3 Introduction of Infosys

Infosys was established by 7 engineers in Pune, India with an initial capital of $250 in 1981. It
was registered as Infosys Consultants Private Limited on July 2, 1981. In 1983, it relocated its
office to Bengaluru, Karnataka, India.

Name Change: The company changed its name to Infosys Technologies Private Limited in April
1992 and to Infosys Technologies Limited when it became a public limited company in June
1992. It was later renamed to Infosys Limited in June 2011.

Share listing:An initial public offer (IPO) in February 1993 with an offer price of ₹95 (equivalent
to ₹490 or US$7.50 in 2017) per share against book value of ₹20 (equivalent to ₹100 or US$1.60
in 2017) per share. The Infosys IPO was under subscribed but it was "bailed out" by US
investment bank Morgan Stanley which picked up 13% of equity at the offer price.[11] Its shares
were listed in stock exchanges in June 1993 with trading opening at ₹145 (equivalent to ₹750 or
US$11 in 2017) per share.

Its shares were listed on NASDAQ in 1999 through ADR route. The share price surged to ₹8,100
(equivalent to ₹25,000 or US$380 in 2017) by 1999 making it the costliest share on the market at
the time. At that time, Infosys was among the 20 biggest companies by market capitalization on
the NASDAQ. The ADR listing was shifted from NASDAQ to NYSE Euronext to give its
European investors better access to its stock.

Infosys, Bengaluru

Revenue growth: Its annual revenue touched US$100 million in 1999, US$1 billion in 2004 and
US$10 billion in 2017.

Geographical expansion: In 2012, Infosys announced a new office in Milwaukee, Wisconsin to

service Harley-Davidson, being the 18th international office in the United States. Infosys hired

[19]
1,200 United States employees in 2011, and expanded the workforce by an additional 2,000
employees in 2012.

Product and portfolio expansion: In July 2014, Infosys started a product subsidiary called,
EdgeVerve Systems., focusing on enterprise software products for business operations, customer
service, procurement and commerce network domains. In August 2015, the Finacle Global
Banking Solutions assets were officially transferred from Infosys and became part of the product
company EdgeVerve Systems product portfolio.

Products and Services

It provides software development, maintenance and independent validation services to companies

in finance, insurance, manufacturing and other domains.

One of its known products is Finacle which is a universal banking solution with various modules
for retail & corporate banking.

Glass building in Pune campus

Its key products and services are:

NIA - Next Generation Integrated AI Platform (formerly known as Mana)

Infosys Consulting - a global management consulting service

Infosys Information Platform (IIP)- Analytics platform

EdgeVerve- Systems which includes Finacle, a global banking platform

[20]
Geographical Presence

Main block in Chennai campus

Infosys had 84 sales and marketing offices and 116 development centers across the world as at
March 31, 2017, with major presence in India, United States, China, Australia, Japan, Middle
East and Europe.

In 2017, 61.9%, 22.5% and 3.2% of its revenues were derived from projects in North America,
Europe and India, respectively. Remaining 12.4% of revenues were derived from rest of the
world.

Listing and Shareholding pattern

In India, shares of Infosys are listed at BSE where it is included in BSE SENSEX and NSE where
it is included in CNX NIFTY. Its shares are listed by way of American Depositary Receipts at
NYSE.

Over a period of time, the shareholding of its promoters has gradually reduced, starting from June
1993 when its shares were first listed on stock exchange. The promoters holdings reduced further
with Employees Stock Options Schemes and listing of ADRs on NASDAQ in 1999. The
promoter holding on 31 March 2002 was 28.72% and at 30 Jun 2017 it dropped to 12.75% as
they gradually sold their shares and reduced involvement in active management of the company.

A building in Thiruvananthapuram campus

Shareholders (as of 30 June 2017) Shareholding

Promoters group 12.75%

Foreign institutional investors (FII) 37.47%

ADR 16.70%

[21]
Individual shareholders 09.83%

Banks, financial institutions and insurance companies 11.24%

Mutual funds 08.97%

Others 03.04%

Total 100.00%

Employees

Infosys had a total of 200,364 employees at the end of March 2017, of which 36% were women.
Its workforce consists of employees representing 129 nationalities. In 2016, 89% of its employees
were based in India. Out of its total workforce, 79% are software professionals, 16% are working
in its BPM arm and remaining 5% work for support and sales.

During financial year 2017, Infosys received 1,293,877 applications from prospective employees
and had a gross addition of 51,004 employees, a 4% hiring rate. These numbers do not include its
subsidiaries.

The attrition rate of Infosys Ltd., excluding its subsidiaries, for financial year 2017, was 15%.

1.4 Introduction of HCL

HCL Technologies Limited (Hindustan Computers Limited) is an Indian multinational IT

services company, headquartered in Noida, Uttar Pradesh, India. It is a subsidiary of HCL
Enterprise. Originally a research and development division of HCL, it emerged as an independent
company in 1991 when HCL ventured into the software services business. HCL Technologies
offers services including IT consulting, enterprise transformation, remote infrastructure

[22]
management, engineering and R&D, and business process outsourcing (BPO). HCL also provides
services such as DRYiCE,Cybersecurity and Digital & Analytics.

The company has offices in 34 countries including the United States, France and Germany, and
the United Kingdom. It operates across sectors including aerospace and defense, automotive,
consumer electronics, energy and utilities, financial services, government, industrial
manufacturing, life sciences and healthcare, media and entertainment, mining and natural
resources, 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. It is among the top 20 largest publicly
traded companies in India with a market capitalization of $18.7 billion as of May 2017.As of
September 2017, the company, along with its subsidiaries, had a consolidatedrevenue of $7.4
billion.

History

Formation and early years

In 1976, a group of six engineers, all former employees of Delhi Cloth & General Mills, led by
Shiv Nadar, started a company that would make personal computers. Initially floated as
Microcomp Limited, Nadar and his team (which also included ArjunMalhotra, AjaiChowdhry,
D.S. Puri, YogeshVaidya and SubhashArora) started selling teledigital calculators to gather
capital for their main product. On 11 August 1976, the company was renamed Hindustan
Computers Limited (HCL).

On 12 November 1991, a company called HCL Overseas Limited was incorporated as a provider
of technology development services. It received the certificate of commencement of business on
10 February 1992 after which it began its operations. Two years later, in July 1994, the company
name was changed to HCL Consulting Limited and eventually to HCL Technologies Limited in
October 1999.

[23]
HCL Technologies is one of the four companies under HCL Corporation, the second company
being HCL Infosystems. In February 2014 HCL launched HCL Healthcare. HCL TalentCare is
the fourth and latest venture of HCL Corporation.

HCL Technologies began as the R&D Division of HCL Enterprise, a company which was a
contributor to the development and growth of the IT and computer industry in India. HCL
Enterprise developed an indigenous microcomputer in 1978, and a networking OS and client-
server architecture in 1983. On 12 November 1991, HCL Technologies was spun off as a separate
unit to provide software services.

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 'HCL Technologies Limited' for "a better reflection of its activities. Between 1991 and
1999, the company expanded its software development capacities to the US, European and APAC
markets.

IPO and subsequent expansion

The company went public on 10 November 1999, with an issue of 14.2 million shares, valued at
₹4 each. During 2000, the company set up an offshore development Centre in Chennai, India, for
KLA-Tencor Corporation.

Joint Venture

On 23 July 2015, CSC (NYSE: CSC) and HCL Technologies (BSE: HCLTECH) announced a
joint venture agreement to form a banking software and services company,
CeleritiFinTech.[41][42]

Operations

A world-map showing the countries where HCL Technologies has operations.

[24]
HCL Technologies operate in 34 countries, including its headquarters in Noida, India. It has
establishments in Australia, China, Hong Kong, India, Indonesia, Israel, Japan, Malaysia, New
Zealand, Saudi Arabia, Singapore, South Africa, the United Arab Emirates and Qatar. In Europe
it covers Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Italy,
Netherlands, Norway, Poland, Sweden, Switzerland and the United Kingdom. In the Americas,
the company has offices in Brazil, Canada, Mexico, Puerto Rico, and the United States.

Business lines

1. ApplicationsServices

2. BPO/Business Services: This division has "delivery centers" in India, the Philippines, Latin
America, USA, HCL BPO Northern Ireland, and Europe.

3. Engineering and R&D Services (ERS)

4. Infrastructure Management Services (IMS)

5. IoTWoRKS

6. DRYiCE

7. Digital & Analytics

8. Cybersecurity

HCL in United Kingdom and Northern Ireland

On 7 September 2005, HCL Technologies expanded its operations base in the counties of
Armagh and Belfast in Northern Ireland. At the 2006 UK Trade and Investment India Business
Awards in New Delhi, the then UK Prime Minister Tony Blair announced the expansion, which

[25]
was aimed at creating more IT and BPO jobs in the area. HCL Armagh and HCL Northern
Ireland acquired the Armagh-based Answer all Direct earlier in 2005. HCL BPO services in
Ireland are carried out through its main delivery centres in Armagh and Belfast.In November
2011, after HCL revealed an expansion plan in the Irish Republic county of Kilkenny, its
Business Process Outsourcing (BPO) division in Northern Ireland won a contract for back-office
services from the Department of Health. It was aimed at increasing the number of jobs and other
employment opportunities in the region.

Corporate social responsibility

Community initiatives

Power of One is an employee-driven, management supported initiative that focuses on

transforming social projects and activities. As a part of this initiative, the company has
undertaken:

 Project Samudhay, which involves adopting 100 villages and driving transformation in
five areas — water, women's welfare, education, health and malnutrition, and sanitation.
 Association with UdayanGhar and over 55 other NGOs, to promote all-round community
development and growth.

Additionally, since 2006, the company conducts monthly and biennial concerts to provide a
platform for upcoming young Indian classical artists to showcase their talent.

Environment initiatives

HCL runs a multi-layered program Go Green as a part of its continued sustainability initiatives.

[26]
In addition, it is also:

 the first Indian ICT manufacturer to launch RoHS compliant laptops.

 the first to launch a PVC& BFR free laptop in India.
 the first Indian company to offer Antimony and Beryllium free laptop.
 the first Indian ICT company to initiate a green bag Campaign and voluntarily recycle the
accumulated e-waste in an environmentally friendly manner.
 an active member of India Council for Sustainable Development (ICSD).
 one of the strategic partners of the World Economic Forum (WEF), contributing to WEF's
Strategy and Government Affairs meetings on the contribution of the Information and
communications industry to managing climate change.

Criticism

HCL has been involved in criticism and litigation involving the H-1B visa program to replace
U.S. Workers with cheaper foreign labor, including the Disney collusion lawsuit, and the heavily
reported case of replacing University of California's San Francisco Medical Center IT workers.

[27]
2.CHAPTER
Research Methodology

[28]
2.1What is Research
Research comprises creative and systematic work undertaken to increase the stock of knowledge.
Including knowledge of human , culture and society and the use of this stock of knowledge to
devise new application. It is used to establish or confirm fact. Reform the results of previous
work .solve new or existing problems .support thermos or develop new theories .a research
project may also be an expansion on past work in the field. Research projects they can be used to
develop further knowledge on a topic, or in the example of a school research project they can be
used to further a student research process to prepare them for future jobs or reports. To test the
validity of instruments, procedures or experiments, research may replicate elements of prior
project or the project as a whole. The primary purpose of basic research (as opposed to applied
research )are documentation, discovery, interpretation, or the research and development of
methods and systems for the advancement of human knowledge. Approach to research depend on
epistemologies, which vary considerably both within and between humanities ,artistic, economic,
social, business, marketing, practitioner research, life, technological etc.

2.2Objective of the study

The Major objective of the Recent Study are to Know about Exchange Rate Fluctuation on IT
Industry [ Wipro, HCL, Infosys] through Correlation Analysis.

the Main Objectives of Recent Study are aimed as,

To Evaluate the Performance of the Company by using Correlation as a yardstick to measure the
Foreign trade transactions of the Company Share. To Study the Positive, Negative, and Rare
Relationship Between Exchange Rate and IT Industry Share Price.

To Evaluate and Analysis Various facts of the Financial Performance of the Company.

OBJECTIVE;

[29]
  To find out the effect of exchange rate Fluctuation on the Share Price.

 To Find out the Relationship between Exchange Rate and Share Price of IT Industry.

2.3 Research design

The research design gives the outline of the research work it is the result of better planning and
implementation of a good strategy. A research design helps a researcher to organize ideas and
check for flows and inadequacies in the collected data. The research design must contain.

 A statement that clearly defines the problem for which the research is being done.
 The procedures and techniques for gathering the information required for research design.
 The method that need to be implemented for processing and analyzing the data required
for research design.

2.4 Data collection

Secondary sources—secondary data are those which have been already collected and examined
earlier by other investigators. While making use of the secondary data. The investigator has to
first determine the source from where the secondary data was collected. There secondary data
was collected through websites of till 2006 to 2016 exchange rate & share price of IT industry
and book magzines.

[30]
2.5 Tools And Techniques of Analysis
Correlation analysis is a method of statistical evaluation used to study the strength of a
relationship between two. Numerically measured, continuous variable ( e.g. price and exchange
rate) the particular type of analysis is useful when a researcher wants to establish if there are
possible connection between variables. It is often misunderstood that correlation analysis
determines causes and affect. however this is not case because other variables that are not present
in the research may have impacted on the result.

If correlation forced between two variables it means that when there is a systematic change in one
variables. There is also a systemetic change in the other the variable alter together over a certain
periods of time. If there is correlation found, depending upon the numerical values otherwise ,
this can be positive or negative.

2.6 Correlation are three types

Positive correlation;- when values of one variables increase with increase in another variables, it
is positive correlation.

Negative Correlation;- on the another hand, if the value of one variable decreases with the
decrease in another variable, then it would be negative correlation.

No correlation;- when there is no change in one variable with any change in another variable in
this case there is no correlation.

Correlation Method

Symbol of correlation = r

Correlation formula as follows

[31]
r= N∑xy-(∑x)(∑y)/[N∑X2-(∑x)2][N∑y2-(∑y)2]

2.7 Implication of the Study

The study is Identified after and during the study is Conducted. The Study Was To Put into
Practical and the theoretical aspect of the study into Life Work experience. The Study of
Correlation Analysis is further the Study is Based on last Ten year Monthly base data of three IT
Industry [Wipro, Infosys, HCL] And Exchange Rate.

2.8 Limitation of the Study

I. The best biggest limitation of the study is that the whole data has been collected from the
various internet sources which means the data might not be fully authentic as the original
data might have been tempered with as oer he needs of the user who collected such data
for first time

[32]
3.CHAPTER
Data Analysis and Interpretation

[33]
3.1Infosys and $

3.2 Wipro and $

3.3HCL and $

3.4Conclusion

3.5bibliography

[34]
3.1Correlation between Exchange Rate $&Infosys

Date $
16-Mar 67.10686 14-Apr 60.45622 12-May 54.86156 10-Jun 46.69058
16-Feb 68.32651 14-Mar 61.12322 12-Apr 52.62779 10-May 45.90534
16-Jan 67.2731 14-Feb 62.13095 12-Mar 51.12974 10-Apr 44.56716
15-Dec 66.55246 14-Jan 61.95708 12-Feb 49.78031 10-Mar 45.50036
15-Nov 66.15809 13-Dec 61.82887 12-Jan 52.35538 10-Feb 46.47286
15-Oct 65.10696 13-Nov 62.59247 11-Dec 53.47385 10-Jan 46.177
15-Sep 66.36655 13-Oct 61.35409 11-Nov 51.11289 9-Dec 46.82223
15-Aug 65.10127 13-Sep 64.04635 11-Oct 49.94935 9-Nov 46.74186
15-Jul 63.60572 13-Aug 62.89621 11-Sep 48.04853 9-Oct 47.06133
15-Jun 63.90676 13-Jul 59.84605 11-Aug 45.66626 9-Sep 48.81542
15- 63.82684 13-Jun 58.2684 11-Jul 44.93912 9-Aug 48.61461
May
15-Apr 62.70022 13-May 54.80029 11-Jun 45.54863 9-Jul 48.84814
15-Mar 62.53659 13-Apr 54.36226 11-May 45.29827 9-Jun 48.26573
15-Feb 62.12954 13-Mar 54.53449 11-Apr 44.99721 9-May 48.98695
15-Jan 62.28523 13-Feb 53.9121 11-Mar 45.71022 9-Apr 50.61806
14-Dec 62.90986 13-Jan 54.37615 11-Feb 45.89364 9-Mar 52.09307
14-Nov 61.6274 12-Dec 54.72232 11-Jan 46.07774 9-Feb 49.66042
14-Oct 61.38706 12-Nov 54.8492 10-Dec 45.86617 9-Jan 49.71919
14-Sep 60.88209 12-Oct 53.0416 10-Nov 45.41518 8-Dec 49.66895
14-Aug 60.90003 12-Sep 54.41294 10-Oct 44.67014 8-Nov 50.10542
14-Jul 60.01524 12-Aug 55.52684 10-Sep 46.33208 8-Oct 50.11125
14-Jun 59.69855 12-Jul 55.42681 10-Aug 46.69604 8-Sep 45.61134
14- 59.30187 12-Jun 56.23719 10-Jul 46.96889 8-Aug 43.01061
May

[35]
8-Jul 42.85846
8-Jun 42.82065
8-May 42.01155
8-Apr 40.02107
8-Mar 40.32241
8-Feb 39.70811
8-Jan 39.36519
7-Dec 39.47839
7-Nov 39.45997
7-Oct 39.54984
7-Sep 40.38143
7-Aug 40.78638
7-Jul 40.44829
7-Jun 40.81072
7-May 40.86676
7-Apr 42.26979
7-Mar 44.00259
7-Feb 44.1248
7-Jan 44.29191
6-Dec 44.60359
6-Nov 44.88303
6-Oct 45.52255
6-Sep 46.21012
6-Aug 46.57638
6-Jul 46.44198
6-Jun 46.056
6-May 45.32908
6-Apr 44.92938

[36]
Infosys Share Price

Date Close
16-Mar 1217.95 14-Feb 955.05 12-Jan 685.84 9-Dec 651.32 7-Nov 401.02
16-Feb 1083.75 14-Jan 924.87 11-Dec 691.27 9-Nov 595.99 7-Oct 459.78
16-Jan 1164.85 13-Dec 871.38 11-Nov 651.89 9-Oct 551.35 7-Sep 474.19
15-Dec 1104.55 13-Nov 838.38 11-Oct 718.8 9-Sep 577.1 7-Aug 463.77
15-Nov 1088.45 13-Oct 827.17 11-Sep 633.45 9-Aug 533.08 7-Jul 494.32
15-Oct 1136.05 13-Sep 753.87 11-Aug 585.7 9-Jul 515.98 7-Jun 482.3
15-Sep 1160.45 13-Aug 775.08 11-Jul 691.7 9-Jun 444.23 7-May 480.07
15-Aug 1095.2 13-Jul 741.79 11-Jun 726.85 9-May 400.5 7-Apr 512.34
15-Jul 1078.05 13-Jun 623.32 11-May 697.97 9-Apr 376.83 7-Mar 503.15
15-Jun 985.35 13-May 601.9 11-Apr 726.49 9-Mar 331.03 7-Feb 519.59
15- 1011.2 13-Apr 558.62 11-Mar 809.19 9-Feb 307.83 7-Jan 561.12
May
15-Apr 971.2 13-Mar 722.48 11-Feb 750.77 9-Jan 326.38 6-Dec 560.13
15-Mar 1108.3 13-Feb 726.5 11-Jan 779.08 8-Dec 279.47 6-Nov 545.12
15-Feb 1147.43 13-Jan 697.19 10-Dec 861.25 8-Nov 310.15 6-Oct 523.7
15-Jan 1071.38 12-Dec 579.63 10-Nov 762.37 8-Oct 345.42 6-Sep 461.98
14-Dec 985.6 12-Nov 609.15 10-Oct 742.4 8-Sep 349.39 6-Aug 452.2
14-Nov 1089.82 12-Oct 590.88 10-Sep 760.25 8-Aug 437.13 6-Jul 413.48
14-Oct 1012.87 12-Sep 633.5 10-Aug 676.78 8-Jul 395.83 6-Jun 384.7
14-Sep 936.92 12-Aug 593.32 10-Jul 697.22 8-Jun 433.69 6-May 363.51
14-Aug 898.5 12-Jul 556.85 10-Jun 697.14 8-May 489.39 6-Apr 397.19
14-Jul 841.43 12-Jun 625.64 10-May 664.42 8-Apr 438.44
14-Jun 811.62 12-May 609.97 10-Apr 684.04 8-Mar 357.54
14May 735.38 12-Apr 615.65 10-Mar 653.78 8-Feb 386.72
14-Apr 794.3 12-Mar 716.24 10-Feb 650.4 8-Jan 375.98
14-Mar 819.72 12-Feb 718.85 10-Jan 619.18 7-Dec 442.1

[37]
 Solution:-

Sum: 178499.922

Result Details & Calculation [X: X Values

X Values Y: Y Values

∑ = 80542.36 Mx: Mean of X Values

Mean = 671.186 My: Mean of Y Values

X-Mx& Y- My; Deviation Score

∑(X - Mx)2 = SSx = 6406960.614 (X-Mx)2 & (Y-My)2: Deviation Squared

Y Values (X-Mx) (Y-My): Product of Deviation scores]

∑ = 6190.024

Mean = 51.584

∑(Y - My)2 = SSy = 7989.556

X and Y Combined

N = 120

∑(X - Mx)(Y - My) = 178499.922

[38]
R Calculation

r = ∑((X - My)(Y - Mx)) / √((SSx)(SSy))

r = 178499.922 / √((6406960.614)(7989.556)) = 0.789

Meta Numerics (cross-check)

r = 0.789 Key

Interpretation:-

The Value of R is 0.789. This is a strong positive correlation, Which means that High X Variable Scores go
with High Y Variable Score.

The Value of R2 the coefficient of determination, is 0.6225.

[39]
3.2Wipro Share Price and $

Date Close
Mar-16 281.68 Mar-14 271.3 Mar-12 219.5 Mar-10 212.04 Nov-07 138.09
Feb-16 259.95 Feb-14 298.38 Feb-12 215.88 Feb-10 203.01 Oct-07 151.44
Jan-16 280.6 Jan-14 287.48 Jan-12 206.63 Jan-10 194.22 Sep-07 137.96
Dec-15 279.9 Dec-13 279.53 Dec-11 199.4 Dec-09 203.82 Aug-07 144.68
Nov-15 286.35 Nov-13 235.48 Nov-11 189.08 Nov-09 188.67 Jul-07 148.7
Oct-15 286.65 Oct-13 238.48 Oct-11 183.23 Oct-09 182.3 Jun-07 155.55
Sep-15 298.58 Sep-13 237.03 Sep-11 170.35 Sep-09 180.53 May07 163.37
Aug-15 285.73 Aug-13 241.95 Aug-11 167.53 Aug-09 165.23 Apr-07 171.38
Jul-15 284.58 Jul-13 218.65 Jul-11 194.98 Jul-09 147.2 Mar-07 167.51
Jun-15 272.08 Jun-13 174.9 Jun-11 208.8 Jun-09 113.3 Feb-07 168.26
May- 280.8 May- 163.28 May- 223.33 May- 114.47 Jan-07 183.87
15 13 11 09
Apr-15 269.28 Apr-13 173.95 Apr-11 225.13 Apr-09 99.15 Dec-06 181.37
Mar-15 313.9 Mar-13 218.58 Mar-11 239.15 Mar-09 73.62 Nov-06 179.69
Feb-15 329.63 Feb-13 208.25 Feb-11 219.2 Feb-09 62.21 Oct-06 161.45
Jan-15 303.15 Jan-13 205.6 Jan-11 219.23 Jan-09 69.33 Sep-06 157.53
Dec-14 276.9 Dec-12 197.18 Dec-10 245.13 Dec-08 70.07 Aug-06 155.37
Nov-14 292.75 Nov-12 196.48 Nov-10 210.1 Nov-08 72.99 Jul-06 147.39
Oct-14 281.73 Oct-12 175.4 Oct-10 209.8 Oct-08 81.65 Jun-06 154.13
Sep-14 298.18 Sep-12 190.65 Sep-10 224.18 Sep-08 101.9 May06 134.96
Aug-14 282.7 Aug-12 183.8 Aug-10 199.9 Aug-08 129.69 Apr-06 161.7
Jul-14 271.83 Jul-12 169.95 Jul-10 205.68 Jul-08 124.8
Jun-14 272.48 Jun-12 199.65 Jun-10 192.38 Jun-08 131.39
May14 252.5 May12 204.78 May10 200.51 May08 152.4
Apr-14 261 Apr-12 202.55 Apr-10 202.05 Apr-08 146.58

[40]
Solution:-

Result Details & Calculation

X Values
∑ = 6190.024
Mean = 51.584
∑(X - Mx)2 = SSx = 7989.556

Y Values
∑ = 23872.01
Mean = 198.933
∑(Y - My)2 = SSy = 438722.469

X and Y Combined
N = 120
∑(X - Mx)(Y - My) = 43069.584

R Calculation
r = ∑((X - My)(Y - Mx)) / √((SSx)(SSy))

r = 43069.584 / √((7989.556)(438722.469)) = 0.7275

Meta Numerics (cross-check)

r = 0.7275

Interpretation-The value of R is 0.7275. This is a moderate positive correlation, which means

there is a tendency for high X variable scores go with high Y variable scores (and vice versa).

The value of R2, the coefficient of determination, is 0.5293.

[41]
3.3 HCL Share Price and $

Date Close
Mar-16 814.15 Feb-14 788 Jan-12 218.48 Dec-09 185.68 Nov-07 160.13
Feb-16 812.4 Jan-14 732.35 Dec-11 194.13 Nov-09 168.13 Oct-07 155.53
Jan-16 866 Dec-13 631.55 Nov-11 193.23 Oct-09 152.73 Sep-07 149.9
Dec-15 855.45 Nov-13 543.28 Oct-11 221.78 Sep-09 169.8 Aug-07 151.7
Nov-15 871.85 Oct-13 546.63 Sep-11 204.15 Aug-09 149.65 Jul-07 157.3
Oct-15 869.55 Sep-13 544.15 Aug-11 205.6 Jul-09 120.23 Jun-07 172
Sep-15 982.15 Aug-13 519.13 Jul-11 243.68 Jun-09 92.85 May-07 172.08
Aug-15 971.6 Jul-13 468.88 Jun-11 246.73 May-09 83.98 Apr-07 167.05
Jul-15 996.6 Jun-13 388.05 May-11 257.4 Apr-09 64.93 Mar-07 145.58
Jun-15 921.05 May-13 373.4 Apr-11 260.2 Mar-09 50.88 Feb-07 149.03
May- 1011.8 Apr-13 360.53 Mar-11 238.25 Feb-09 49.95 Jan-07 162.05
15
Apr-15 879.5 Mar-13 397.98 Feb-11 221.08 Jan-09 58 Dec-06 162.13
Mar-15 979.65 Feb-13 362.3 Jan-11 246.9 Dec-08 57.6 Nov-06 157.32
Feb-15 1010.25 Jan-13 344.43 Dec-10 228.03 Nov-08 68.65 Oct-06 155.69
Jan-15 897.05 Dec-12 309.63 Nov-10 201.9 Oct-08 86.25 Sep-06 137.54
Dec-14 797.98 Nov-12 327.38 Oct-10 202.1 Sep-08 97.18 Aug-06 144.95
Nov-14 831.08 Oct-12 303.68 Sep-10 209.88 Aug-08 116.78 Jul-06 130.05
Oct-14 802.63 Sep-12 288.65 Aug-10 191.78 Jul-08 100.5 Jun-06 125.53
Sep-14 857.68 Aug-12 272.43 Jul-10 196.15 Jun-08 125.35 May-06 125.24
Aug-14 815.18 Jul-12 258.6 Jun-10 182.45 May-08 156.45 Apr-06 143.49
Jul-14 777.45 Jun-12 238.1 May-10 191.28 Apr-08 143.38
Jun-14 748.28 May-12 252.08 Apr-10 197.13 Mar-08 126.5
May14 708.68 Apr-12 256 Mar-10 178.9 Feb-08 138.8
Apr-14 701.83 Mar-12 241.18 Feb-10 183.73 Jan-08 124.75
Mar-14 695.25 Feb-12 242.18 Jan-10 173.23 Dec-07 165.7

[42]
Solution:-

Result Details & Calculation

X Values
∑ = 6190.024
Mean = 51.584
∑(X - Mx)2 = SSx = 7989.556

Y Values
∑ = 42632.82
Mean = 355.274
∑(Y - My)2 = SSy = 10070243.287

X and Y Combined
N = 120
∑(X - Mx)(Y - My) = 249235.205

R Calculation
r = ∑((X - My)(Y - Mx)) / √((SSx)(SSy))

r = 249235.205 / √((7989.556)(10070243.287)) = 0.8787

Meta Numerics (cross-check)

r = 0.8787

Interpretation;-The value of R is 0.8787. This is a strong positive correlation, which means

that high X variable scores go with high Y variable scores (and vice versa).

The value of R2, the coefficient of determination, is 0.7721

[43]
3.4 Suggestion and Recommendation

 Since RBI Control influence through various monetary and fiscal measures. It can change
then accordingly to bring the Inflation rate in the country favor and thereby controlling
the value of rupee in global market
 As it known that foreign currency is required in order to make payment for the goods
imported.RBI can increase interest rate which will attract the foreign capital in the
economy and therefore India will never run short of foreign currency.

[44]
3.5 conclusion

From my study of Exchange Rate Fluctuation on IT Industry[Infosys, Wipro, HCL]. I Found out
that the correlation performance in the Last ten years was good, like, Infosys has Strong positive
,Wipro Has Moderate positive, and HCL has also strong positive correlation. And it is well
established in the market. and last ten year the IT Company has positive relationship with
Exchange rate.

[45]
3.5 Bibliography

Handbook;- Business statics [ S.P. Gupta]

WEBSITES VISITED:

https://in.finance.yahoo.com

www.google.com

www.hcltech.com

Wikipedia

www.infosys.com

www/hcl.com

www.hcltech.com

[46]