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HCL Technologies Ltd.

BSE: 532281 Sector: IT
NSE: HCLTECH ISIN Code: INE860A01027
BSE 10:31 | 26 Sep 1096.00 -16.45
(-1.48%)
OPEN

1117.00

HIGH

1120.00

LOW

1093.25

NSE 10:19 | 26 Sep 1095.50 -20.85
(-1.87%)
OPEN

1120.10

HIGH

1120.85

LOW

1092.75

OPEN 1117.00
PREVIOUS CLOSE 1112.45
VOLUME 11373
52-Week high 1124.50
52-Week low 825.10
P/E 20.12
Mkt Cap.(Rs cr) 152,618
Buy Price 1096.35
Buy Qty 158.00
Sell Price 1097.05
Sell Qty 91.00
OPEN 1117.00
CLOSE 1112.45
VOLUME 11373
52-Week high 1124.50
52-Week low 825.10
P/E 20.12
Mkt Cap.(Rs cr) 152,618
Buy Price 1096.35
Buy Qty 158.00
Sell Price 1097.05
Sell Qty 91.00

HCL Technologies Ltd. (HCLTECH) - Auditors Report

Company auditors report

To the Members of HCL Technologies Limited

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statementsof HCL Technologies Limited ("the Company") which comprise the Balance Sheet asat March 31 2018 the

Statement of Profit and Loss including the statement of Other

Comprehensive Income the Cash Flow Statement and the

Statement of Changes in Equity for the year then ended and a summaryof significant information.

Management's Responsibility for the Standalone Ind AS FinancialStatements

The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these standalone

Ind AS financial statements that give a true and fair view thefinancial positionfinancialperformance including other comprehensive income cash flowsand changes in equity of the

Company in accordance with accounting principles generally accepted inIndia including the Indian Accounting Standards

(Ind AS) specified under section 133 of the Act read with the

Companies (Indian Accounting Standards) Rules 2015 as amended. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; andthe design implementation and maintenance of adequate internal financial control thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Ind

AS financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone

Ind AS financial statements based on our audit. We have taken intoaccount the provisions of the Act the accounting and auditing standards and matters whichare required to be included in the audit report under the provisions of the Act and theRules made thereunder. We conducted our audit of the standalone

Ind AS financial statements in accordance with the Standards onAuditing issued by the Institute of Chartered Accountants of India as specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence aboutthe amounts and disclosures in the financial statements.

The procedures selected depend on the auditor's judgmentincluding the assessment of the risks of material misstatement of the standalone Ind ASfinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation ofthe standalone Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by the Company's Directors as well as evaluating theoverall presentation of the standalone Ind AS financial statements. We believe that theaudit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinion on the standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to theexplanations given to us the standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at March 31 2018 its profit including other comprehensive income its cashflows and the changes in equity for the 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 Indiain terms of sub-section (11) of section 143 of the Act we give in the"Annexure1"a statement on the matters specified in paragraphs 3 and 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 explanationswhich to the best of our knowledge and belief were necessary for the purpose of our audit;

(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books;

(c) The Balance Sheet Statement of Profit and Loss including theStatement of Other Comprehensive Income the Cash Flow Statement and Statement of Changesin Equity dealt with by this Report are in agreement with the books of account;

(d) In our opinion the aforesaid standalone Ind AS financialstatements comply with the Accounting Standards specified under section 133 of the Actread with Companies (Indian Accounting Standards) Rules 2015 as amended;

(e) On the basis of written representations received from the directorsas on March 31 2018 and taken on record by the Board of Directors none of the directorsis disqualified as on March 31 2018 from being appointed as a director in terms ofsection 164(2) of the Act;

(f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure 2" to this report;

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

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone Ind AS financial statements; ii. The Company has madeprovision as required under the applicable law or accounting standards for materialforeseeable losses if any on long-term contracts including derivative contracts;

iii. There has been no delay in transferring amounts required to betransferred to the Investor

Education and Protection Fund by the Company;

For S.R. Batliboi & CO. LLP
Chartered Accountants
ICAI Firm Registration Number: 301003E / E300005
per Nilangshu Katriar
Partner
Membership Number: 58814
Place of Signature: Gurgaon
Date: May 2 2018

Annexure 1 referred to in paragraph 1 of the section on

"Report on Other Legal and Regulatory Requirements" of ourreport of even date Re: HCL Technologies Limited (the Company)

(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.

(b) All fixed assets were management in accordance with a plannedprogramme of verifying them in phased manner over a period of three years which in ouropinion is reasonable having regard to the size of the Company and the nature of itsassets. No material discrepancies were noticed on such verification conducted during thefinancial year.

(c) According to the information and explanations given by themanagement the title deeds of immovable properties included in property plant andequipment / fixed assets are held in the name of the Company.

(ii) The management has conducted physical verification inventory atreasonable intervals during the financial year and no material discrepancies were noticedon such physical verification.

(iii) According to the information and explanations given to us theCompany has not granted any loans secured or unsecured to companies firmsLimitedLiability Partnerships or other parties covered in the register maintained under section189 of the Companies Act 2013. Accordingly the provisions of clause 3(iii)(a) (b) and(c) of the Order are not applicable to the Company and hence not commented upon.

(iv) In our opinion and according to the information and explanationsgiven to us provisions of section 186 of the Companies Act 2013 in respect of loansgiven have been complied with by the Company. In our opinion and according to theinformation and explanations given to us there are no loans investments guarantees andsecurities given in respect of which provisions of section 185 of the Companies Act 2013are applicable and hence not commented upon.

(v) The Company has not accepted any deposits within the meaning ofSections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014 (asamended). Accordingly the provisions of clause 3(v) of the Order are not applicable.

(vi) To the best of our knowledge and as explained the Central

Government has not specified the maintenance of cost records underclause 148(1) of the Companies Act 2013 for the products / services of the Company.

(vii) (a) Undisputed statutory dues including provident fundemployees' state insurance income-tax sales-tax service tax duty of custom valueadded tax goods and service tax cess and other material statutory dues have generallybeen regularly deposited with the appropriate authorities though there has been slightdelay in few cases. The provisions relating to duty of excise is not applicable to theCompany. physically (b) Accordingverified tobythethe information and explanations given tous no undisputed amounts payable in respect of provident fund employees' stateinsurance income-tax sales-tax goods and service tax duty of custom value added taxcess and other statutory dues were outstanding at the year end for a period of more thansix months from the date they became payable except for service tax as below:

Name of the Statute Nature of Dues Amount (in Crores of Rs) Period to which the amount relates Due Date Date of Payment
Finance Act 1994 read with Service Tax Rules 1994* Service tax 5.21 2010-11 to 2014-15 06-Feb- 17 Not Paid

* As informed by Management the Company has filed a writ petitionbefore the Bombay High Court on 19 March 2018 which is not yet accepted by the high court.The writ petition has been filed because time limit to file appeal with the CESTAT hasbeen lapsed.

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

Name of the Statute Nature of Dues Amount (in Crores of Rs) Period to which the amount relates Forum where dispute is pending
Income Tax Act 1961 Income Tax 2.10 2012-13 Commissioner of Income Tax (Appeals)
Income Tax Act 1961 Income Tax 19.89 2011-12 Commissioner of Income Tax (Appeals)
Income Tax Act 1961 Income Tax 2.46 2010-11 Income Tax Appellate Tribunal
Income Tax Act 1961 Income Tax 68.80 2009-10 Income Tax Appellate Tribunal
Income Tax Act 1961 Income Tax 63.65 2008-09 Income Tax Appellate Tribunal
Income Tax Act 1961 Income Tax 0.68 2008-09 Income Tax Appellate Tribunal
Income Tax Act 1961 Income Tax 230.82 2006-07 Income Tax Appellate Tribunal
Income Tax Act 1961 Income Tax 205.00 2005-06 Income Tax Appellate Tribunal
Income Tax Act 1961 Income Tax 7.17 2004-05 Delhi High Court
Income Tax Act 1961 Income Tax 18.10 2004-05 Income Tax Appellate Tribunal
Income Tax Act 1961 Income Tax 1.18 2004-05 Income Tax Appellate Tribunal
Income Tax Act 1961 Income Tax 1.74 2004-05 Income Tax Appellate Tribunal
Income Tax Act 1961 Income Tax 15.95 2004-05 Income Tax Appellate Tribunal
Income Tax Act 1961 Income Tax 6.97 2004-05 Supreme Court
Income Tax Act 1961 Income Tax 0.55 2004-05 Commissioner of Income Tax (Appeals)
Income Tax Act 1961 Income Tax 51.27 2003-04 Supreme Court
Income Tax Act 1961 Income Tax 8.94 2003-04 Delhi High Court
Income Tax Act 1961 Income Tax 2.11 2003-04 Delhi High Court
Income Tax Act 1961 Income Tax 4.22 2003-04 Income Tax Appellate Tribunal
Income Tax Act 1961 Income Tax 2.34 2003-04 Supreme Court
Income Tax Act 1961 Income Tax 7.28 2003-04 Commissioner of Income Tax (Appeals)
Income Tax Act 1961 Income Tax 25.33 2002-03 Delhi High Court
Income Tax Act 1961 Income Tax 3.02 2002-03 Supreme Court
Income Tax Act 1961 Income Tax 13.02 2002-03 Income Tax Appellate Tribunal
Income Tax Act 1961 Income Tax 0.20 2002-03 Delhi High Court
Income Tax Act 1961 Income Tax 8.12 2001-02 Supreme Court
Income Tax Act 1961 Income Tax 0.34 2000-01 Delhi High Court
Income Tax Act 1961 Income Tax 0.44 2000-01 Supreme Court
Income Tax Act 1961 # Income Tax 1.40 2010-11 Income Tax Appellate Tribunal
Income Tax Act 1961 # Income Tax 19.54 2009-10 Income Tax Appellate Tribunal
Income Tax Act 1961 # Income Tax 0.30 2008-09 Income Tax Appellate Tribunal
Income Tax Act 1961 # Income Tax 0.46 2007-08 Income Tax Appellate Tribunal
Income Tax Act 1961 # Income Tax 13.11 2005-06 Income Tax Appellate Tribunal
Income Tax Act 1961 # Income Tax 0.08 2004-05 Income Tax Appellate Tribunal
Income Tax Act 1961 * Income Tax 12.15 2011-12 Income Tax Appellate Tribunal
Income Tax Act 1961 * Income Tax 4.67 2010-11 Income Tax Appellate Tribunal
Income Tax Act 1961 * Income Tax 19.52 2009-10 Income Tax Appellate Tribunal
Income Tax Act1961 * Income Tax 30.24 2008-09 Income Tax Appellate Tribunal
Income Tax Act 1961 * Income Tax 6.62 2007-08 Income Tax Appellate Tribunal
Income Tax Act 1961 * Income Tax 19.62 2006-07 Income Tax Appellate Tribunal
Income Tax Act 1961 * Income Tax 5.73 2012-13 Income Tax Appellate Tribunal
Income Tax Act 1961 Income Tax 3.63 2013-14 Commissioner (Appeals)
Customs Act 1962 Custom Duty 0.27 2006-07 Common Adjudicating Authority (Directorate of Revenue Intelligence) Office of Asstt.
Customs Act 1962 * Custom Duty 6.85 2007-08 Commissioner of Customs Office of Asstt.
Customs Act 1962 * Custom Duty 0.11 2009-14 Commissioner of Customs
Customs Act 1962 * Custom Duty 0.25 2009-14 Office of Asstt. Commissioner of Customs
Customs Act 1962 * Custom Duty 0.01 1999-00 Office of Asstt. Commissioner of Customs
Customs Act 1962 * Custom Duty 1.06 1998-99 Office of Asstt. Commissioner of Customs
Customs Act 1962 * Custom Duty 6.52 1997-98 Office of Asstt. Commissioner of Customs
Customs Act 1962 * Custom Duty 2.30 1997-99 Office of Asstt. Commissioner of Customs
Customs Act 1962 * Custom Duty 0.07 1997-98 Office of Asstt. Commissioner of Customs
Central Excise Act 1944 Excise Duty 2.99 2011-12 Commissioner Appeals Central
Finance Act 1994 read with Service Tax Rules 1994 Service Tax 2.55 2013-15 Excise Chennai CESTAT Allahabad
Finance Act 1994 read with Service Tax Rules 1994 Service Tax 6.80 2010-13 CESTAT Allahabad
Finance Act 1994 read with Service Tax Rules 1994 Service Tax 0.09 2009-10 CustomsExcise Service Tax Appellant Tribunal Allahabad
Finance Act 1994 read with Service Tax Rules 1994 Service Tax 0.28 2006-11 CustomsExcise Service Tax Appellant Tribunal Allahabad
Finance Act 1994 read with Service Tax Rules 1994 Service Tax 6.82 2006-07 Commissioner (Appeals)
Finance Act 1994 read with Service Tax Rules 1994 Service Tax 0.45 2007-08 to 2011-12 Commissioner (Appeals)
Central Board Trustees * Provident fund 4.30 1996-14 Bombay High Court

Above amount represents total demand inclusive of interest. Totalamount deposited / adjusted in respect of Income tax is Rs133.35 Crores Custom DutyRs7.12 Crores and Service tax is Rs4.44 Crores.

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

* Pursuant to acquisition of demerged business of Geometric Limited in

FY 2016-17

(viii) In our opinion and according to the information and explanationsgiven by the management the Company has not defaulted in repayment of loans or borrowingto a bank. The Company did not have any outstanding loans or borrowing dues in respect offinancial institution or government or dues to debenture holders.

(ix) According to the information and explanations given by themanagement the Company has not raised any money by way of initial public offer / furtherpublic offer / debt instruments hence reporting under clause is not applicable to theCompany and hence not commented upon. In our opinion and according to information andexplanations given by the management term loans were applied for the purpose for whichthey were raised.

(x) Based upon the audit procedures performed for the purpose ofreporting the true and fair view of the financial statements and according to theinformation and explanations given by the management we report that no fraud by thecompany or no fraud / material fraud on the company by the officers and employees of theCompany has been noticed or reported during the year.

(xi) According to the information and explanations given by themanagement the managerial remuneration has been paid / provided in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theCompanies Act 2013.

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

(xiii) According to the information and explanations given by themanagement transactions with the related parties are in compliance with section 177 and188 of Companies Act 2013 where applicable and the details have been disclosed in thenotes to the financial statements as required by applicable accounting standards.

(xiv) According to the information and explanations given to us and onan overall examination of the balance sheet the company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year under review and hence reporting requirements under clause 3(xiv) are notapplicable to the company and not commented upon.

(xv) According to the information and explanations given by themanagement the Company has not entered into any non-cash transactions with directors orpersons connected with him as referred to in section 192 of Companies Act 2013.

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

For S.R. BATLIBOI & CO. LLP
Chartered Accountants
ICAI Firm registration number: 301003E / E300005
per Nilangshu Katriar
Partner
Membership Number: 58814
the Place of Signature: Gurgaon
Date: May 2 2018

ANNEXURE 2 TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THESTANDALONE FINANCIAL STATEMENTS OF HCL TECHNOLOGIES LIMITED

Report on the Internal Financial Controls under Clause (i) of

Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")

We have audited the internal financial controls over financialreporting of HCL Technologies Limited ("the Company") as of March 31 2018 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on date.

Management's Responsibility for Internal Financial Controls

The Company's Management is responsible for establishing andmaintaining internal financial controls based on the over financial reporting criteriaestablished by the considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe Institute of Chartered Accountants of India. These responsibilities include thedesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding the Company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompanies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") and the Standards on Auditing asspecified under section 143(10) of the Companies Act 2013 to the extent applicable to anaudit of internal financial controls and both issued by the Institute of CharteredAccountants of

India. Those Standards and the Guidance Note require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether adequate internal financial controls over financial reporting wasestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial controlover financial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonabledetailaccuratelyandfairlyreflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance control with generally accepted accounting principles Companyand that receipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on thefinancial statements.

Inherent to Limitations of Internal Financial Controls OverFinancial Reporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialreporting may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequateinternal financial controls system over financial reporting and such internal financialreporting were operating effectively as at March 31 2018 based on the internal controlover financial by the Company considering the essential components of internal controlstated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India.

For S.R. Batliboi & CO. LLP
Chartered Accountants
ICAI Firm Registration Number: 301003E / E300005
per Nilangshu Katriar
Partner
Membership Number: 58814
Place of Signature: Gurgaon
Date: May 2 2018