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HCL Technologies Ltd.

BSE: 532281 Sector: IT
NSE: HCLTECH ISIN Code: INE860A01027
BSE LIVE 15:40 | 22 Sep 884.60 14.50
(1.67%)
OPEN

870.10

HIGH

889.90

LOW

870.05

NSE 15:55 | 22 Sep 884.45 14.15
(1.63%)
OPEN

870.00

HIGH

890.00

LOW

869.60

OPEN 870.10
PREVIOUS CLOSE 870.10
VOLUME 54432
52-Week high 926.00
52-Week low 731.05
P/E 18.02
Mkt Cap.(Rs cr) 123,141
Buy Price 0.00
Buy Qty 0.00
Sell Price 883.40
Sell Qty 3.00
OPEN 870.10
CLOSE 870.10
VOLUME 54432
52-Week high 926.00
52-Week low 731.05
P/E 18.02
Mkt Cap.(Rs cr) 123,141
Buy Price 0.00
Buy Qty 0.00
Sell Price 883.40
Sell Qty 3.00

HCL Technologies Ltd. (HCLTECH) - Auditors Report

Company auditors report

To the Members of HCL Technologies Limited

Report on the Financial Statements

We have audited the accompanying Standalone Financial Statements of HCL TechnologiesLimited ("the Company") which comprise the Balance Sheet as at March 31 2016the Statement of Profit and Loss and Cash Flow Statement for the financial year (ninemonths period - July 1 2015 to March 31 2016) then ended and a summary of significantaccounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese Standalone Financial Statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance withaccounting principles generally accepted in India including the Accounting Standardsspecified under section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and the design implementation and maintenance of adequateinternal financial control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Standalone Financial Statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder. We conducted our audit inaccordance with the Standards on Auditing issued by the Institute of CharteredAccountants of India as specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the StandaloneFinancial Statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the Standalone Financial Statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2016 its profit and its cash flows for the financial year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure 1 a statement on the matters specified in paragraphs 3and 4 of the Order.

2. As required by section 143 (3) of the Act we report that:

(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit;

(b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;

(c) The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;

(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;

(e) On the basis of written representations received from the Directors as on March 312016 and taken on record by the Board of Directors none of the Directors is disqualifiedas on March 31 2016 from being appointed as a Director in terms of section 164 (2) ofthe Act;

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure 2" to this report;

(g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements as of March 31 2016;

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts as of March 31 2016;

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

For S.R. BATLIBOI & CO. LLP

Chartered Accountants

ICAI Firm registration number: 301003E

per Tridibes Basu

Partner

Membership Number: 17401

Place of Signature: Gurgaon India

Date: April 28 2016

ANNEXURE 1 REFERRED TO IN PARAGRAPH 1 OF THE SECTION ON "REPORT ON OTHER LEGAL

AND REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE

Re: HCL Technologies Limited (the Company)

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) All fixed assets were physically verified by the management in accordance with aplanned programme of verifying them in phased manner over a period of three years whichin our opinion is reasonable having regard to the size of the Company and the nature ofits assets.

No material discrepancies were noticed on such verification conducted during thefinancial year.

(c) Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to information and explanations givenby the management the title deeds of immovable properties are held in the name of thecompany.

(ii) The management has conducted physical verification of inventory at reasonableintervals during the financial year and no material discrepancies were noticed on suchphysical verification.

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms Limited LiabilityPartnerships or other parties covered in the register maintained under section 189 of theCompanies Act 2013. Accordingly the provisions of clause 3(iii)(a) (b) and (c) of theOrder are not applicable to the Company and hence not commented upon.

(iv) In our opinion and according to the information and explanations given to us theCompany has not advanced loans to directors / to a company in which the Director isinterested to which provisions of section 185 of the Companies Act 2013 apply and hencenot commented upon. In our opinion and according to the information and explanations givento us provisions of section 185 and 186 of the Companies Act 2013 in respect investmentsmade and guarantees given have been complied with by the company.

(v) The Company has not accepted any deposits from the public.

(vi) To the best of our knowledge and as explained the Central Government has notspecified the maintenance of cost records under clause 148(1) of the Companies Act 2013for the products/services of the Company.

(vii) (a) Undisputed statutory dues including provident fund employees' stateinsurance income-tax sales-tax service tax duty of custom duty of excise value addedtax cess and other material statutory dues have generally been regularly deposited withthe appropriate authorities though there has been a slight delay in a few cases.

(b) According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income-tax service taxsales-tax duty of custom duty of excise value added tax cess and other materialstatutory dues were outstanding at the year end for a period of more than six monthsfrom the date they became payable.

(c) According to the records of the Company the dues outstanding of income-taxsales-tax service tax duty of custom duty of excise and value added tax on account ofany dispute are as follows:

Name of the Statute Nature of Dues Amount (Rs) Period to which the amount relates Forum where dispute is pending
Income Tax Act 1961# Income Tax 47920 2011-12 Commissioner of Income Tax (Appeals)
Income Tax Act 1961 Income Tax 25126272 2010-11 Income Tax Appellate Tribunal
Income Tax Act 1961# Income Tax 15730230 2010-11 Commissioner of Income Tax (Appeals)
Income Tax Act 1961# Income Tax 131323113 2009-10 Commissioner of Income Tax (Appeals)
Income Tax Act 1961 Income Tax 355749760 2009-10 Income Tax Appellate Tribunal
Income Tax Act 1961# Income Tax 2095846 2008-09 Commissioner of Income Tax (Appeals)
Income Tax Act 1961 Income Tax 402841530 2008-09 Income Tax
Appellate Tribunal
Income Tax Act 1961 Income Tax 2958374 2008-09 Commissioner
of Income Tax
(Appeals)
Income Tax Act 1961 Income Tax 1909207468 2006-07 Income Tax
Appellate Tribunal
Income Tax Act 1961# Income Tax 93002545 2005-06 Income Tax
Appellate Tribunal
Income Tax Act 1961 Income Tax 1669402243 2005-06 Income Tax
Appellate Tribunal
Income Tax Act 1961# Income Tax 681495 2004-05 Income Tax
Appellate Tribunal
Income Tax Act 1961 Income Tax 149077352 2004-05 Commissioner
of Income Tax
(Appeals)
Income Tax Act 1961 Income Tax 10326000 2004-05 Income Tax
Appellate Tribunal
Income Tax Act 1961 Income Tax 139044529 2004-05 Income Tax
Appellate Tribunal
Income Tax Act 1961 Income Tax 15398052 2004-05 Income Tax
Appellate Tribunal
Income Tax Act 1961* Income Tax 62522590 2004-05 Delhi High Court
Income Tax Act 1961 Income Tax 1864476 2004-05 Commissioner
of Income Tax
(Appeals)
Income Tax Act 1961 Income Tax 24739773 2003-04 Commissioner
of Income Tax
(Appeals)
Income Tax Act 1961# Income Tax 136945 2003-04 Commissioner
of Income Tax
(Appeals)
Income Tax Act 1961 Income Tax 18585000 2003-04 Delhi High Court
Income Tax Act 1961* Income Tax 77905852 2003-04 Delhi High Court
Income Tax Act 1961 Income Tax 460381404 2003-04 Supreme Court
Income Tax Act 1961* Income Tax 24403221 2003-04 Delhi High Court
Income Tax Act 1961* Income Tax 220755862 2002-03 Delhi High Court
Income Tax Act 1961 Income Tax 1770000 2002-03 Delhi High Court
Income Tax Act 1961 Income Tax 115439700 2002-03 Income Tax
Appellate Tribunal
Income Tax Act 1961 Income Tax 14789871 2002-03 Supreme Court
of India
Income Tax Act 1961 Income Tax 77203046 2001-02 Income Tax
Appellate Tribunal
Income Tax Act 1961 Income Tax 69238607 2001-02 Supreme Court
of India
Income Tax Act 1961 Income Tax 3010000 2000-01 Delhi High Court
Finance Act 1994 read with Service Tax 1398389 2006-11 Customs Excise
Service Tax
Service Tax Rules 1994 Appellant Tribunal
New Delhi
Finance Act 1994 read with Service Tax 506193 2009-10 Customs Excise
Service Tax
Service Tax Rules 1994 Appellant Tribunal
New Delhi
Finance Act 1994 read with Service Tax 26353282 2006-07 Commissioner
Appeals Central
Service Tax Rules 1994 Excise Noida
Finance Act 1994 read with Service Tax 9999021 2006-07 Customs Excise
Service Tax
Service Tax Rules 1994 Appellant Tribunal
New Delhi
Central Excise Act 1944 Excise Duty 15388874 2011-12 Commissioner
Appeals Central
Excise Chennai
Customs Act 1962 Custom Duty 5972497 2005-06 Customs Excise
Service Tax
Appellant Tribunal
Bangalore
Customs Act 1962 Custom Duty 2717465 2006-07 Common
Adjudicating
Authority
(Directorate of
Revenue
Intelligence)

* In these cases tax demand may arise only if the matter currently subjudice beforeHonorable Delhi High Court is decided against the Company.

# Pursuant to scheme for demerger of IT enabled business of HCL Comnet Systems &Services Limited in FY 2012 - 13.

(viii) Based on our audit procedures performed for the purpose of reporting the trueand fair view of the financial statements and according to information and explanationsgiven by the management we are of the opinion that the Company has not defaulted inrepayment of dues to a financial institution bank or debenture holders or government.

(ix) Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management and on an overall examination of the balance sheet we report thatmonies raised by way of term loans were applied for the purposes for which those wereraised. The Company has not raised any money by way of initial public offer / furtherpublic offer or any debt instrument during the financial year.

(x) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management we report that no fraud by the company or no material fraud r bythe officers and employees of the Company has been noticed or reported during thefinancial year.

(xi) Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management we report that the managerial remuneration has been paid /provided in accordance with the requisite approvals mandated by the provisions of section197 read with Schedule V to the Companies Act 2013.

(xii) In our opinion the Company is not a nidhi company. Therefore the provisions ofclause 3(xii) of the order are not applicable to the Company and hence not commented upon.

(xiii) Based on our audit procedures performed for the purpose of reporting the trueand fair view of the financial statements and according to the information andexplanations given by the management transactions with the related parties are incompliance with section 177 and 188 of Companies Act 2013 where applicable and thedetails have been disclosed in the notes to the financial statements as required by theapplicable accounting standards.

(xiv) According to the information and explanations given to us and on an overallexamination of the balance sheet the company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the financialyear under review and hence not commented upon.

(xv) Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management the Company has not entered into any non-cash transactions withdirectors or persons connected with him.

(xvi) According to the information and explanations given to us the provisions ofsection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the Company.

For S.R. BATLIBOI & CO. LLP

Chartered Accountants

ICAI Firm registration number: 301003E

per Tridibes Basu

Partner

Membership Number: 17401

Place of Signature: Gurgaon India

Date: April 28 2016

ANNEXURE 2 TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE

FINANCIAL STATEMENTS OF HCL TECHNOLOGIES LIMITED

Report on the Internal Financial Controls under Clause (i) of Subsection 3 of Section143 of the Companies Act 2013 ("the Act")

To the Members of HCL Technologies Limited

We have audited the internal financial controls over financial reporting of HCLTechnologies Limited ("the Company") as of March 31 2016 in conjunction withour audit of the Standalone Financial Statements of the Company for the financial yearended on that date.

Management's Responsibility for Internal Financial Controls

The Company's Management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing as specified under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the internal financial controls system overfinancial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles.

A company's internal financial control over financial reporting includes those policiesand procedures that (1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany; (2) provide reasonable assurance that transactions are recorded as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the company's assets that could have a material effecton the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

Explanatory paragraph

We also have audited in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India as specified under Section 143(10) of theAct the Standalone Financial Statements of the Company which comprise the Balance Sheetas at March 31 2016 and the related Statement of Profit and Loss and Cash Flow Statementfor the financial year then ended and a summary of significant accounting policies andother explanatory information and our report dated April 28 2016 expressed unqualifiedopinion.

For S.R. BATLIBOI & CO. LLP

Chartered Accountants

ICAI Firm registration number: 301003E

per Tridibes Basu

Partner

Membership Number: 17401

Place of Signature : Gurgaon India

Date: April 28 2016