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HCL Technologies Ltd.

BSE: 532281 Sector: IT
NSE: HCLTECH ISIN Code: INE860A01027
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VOLUME 671
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P/E 35.19
Mkt Cap.(Rs cr) 293,074
Buy Price 1080.00
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Sell Price 1081.70
Sell Qty 600.00
OPEN 1080.00
CLOSE 1077.90
VOLUME 671
52-Week high 1377.00
52-Week low 890.00
P/E 35.19
Mkt Cap.(Rs cr) 293,074
Buy Price 1080.00
Buy Qty 47.00
Sell Price 1081.70
Sell Qty 600.00

HCL Technologies Ltd. (HCLTECH) - Auditors Report

Company auditors report

To the Members of HCL Technologies Limited Report on the Audit of the StandaloneFinancial Statements

Opinion

We have audited the standalone financial statements of HCL

Technologies Limited ("the Company") which comprise the Standalone BalanceSheet as at 31 March 2021 and the Standalone Statement of Profit and Loss (includingother comprehensive income) Standalone Statement of Changes in Equity and StandaloneStatement of Cash Flows for the year then ended and notes to the standalone financialstatements including a summary of the significant accounting policies and otherexplanatory information (hereinafter referred to as ‘the standalone financialstatements’).

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 ("Act") in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at 31 March 2021 and profitand other comprehensiveincome changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those SAs are furtherdescribed in the Auditor’s Responsibilities for the Audit of the StandaloneFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thestandalone financial statements under the provisions of the Act and the Rules thereunderand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the Code of Ethics. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our opinion on the standalonefinancial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current period.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters.

Description of Key Audit Matters

The key audit matter How the matter was addressed in our audit
Revenue Recognition on fixed price contracts (See note 1(f) andstatements) 3.19tothe standalone financial
Revenue and onerous obligation in respect of open fixed price contracts involves critical estimates as there is an inherent and presumed fraud risk involved around the recognition of revenue given the customized and complex nature of these contracts. In view of the significance of the matter we applied the following audit procedures in this area among others to obtain sufficient appropriate audit evidence:
Estimation of efforts is a critical estimate to determine revenue and liability for onerous obligations for open fixed price contracts. The estimate has a high inherent uncertainty as it requires consideration of progress of contracts efforts incurred till date and efforts required to complete the remaining contract performance obligations. evaluating the design implementation and operating effectiveness of internal controls relating to estimation of efforts required and recording of efforts incurred to complete the remaining contract performance obligations.
obtaining an understanding of the systems processes and controls implemented by management for recording and computing revenue and associated contract assets and unearned and deferred revenue balances.
involving our Information Technology (‘IT’) specialists to assess the design implementation and operating effectiveness of key IT controls over the IT environment in which business systems operate including IT general controls and application controls pertaining to allocation of resources and budgeting systems which prevents unauthorized changes to recording of costs incurred and controls relating to the estimation of contract costs required to complete the project.
selecting specific/statistical samples of contracts and testing revenue recognition and estimation of onerous obligation if any by performing the following procedures.
- evaluating identification of performance obligation and allocation of transaction price to each performance obligation;
- performing retrospective review of the costs incurred with estimated costs to identify significant that variations have been considered in estimating the remaining costs to complete the contract; and
- assessing the appropriateness of work in progress (contract assets) on balance sheet date by verifying the underlying information and identify possible changes in estimated costs to complete the remaining performance obligations.

 

The key audit matter How the matter was addressed in our audit
Evaluation of tax positions and litigations (See note 1(g) and 3.25 to the standalone financial statements)
The Company is required to estimate its income tax liabilities in accordance with the tax laws applicable in India. Further there are matters of interpretation in terms of application of tax laws and related rules to determine current tax provision and deferred taxes. In view of the significance of the matter we applied the following audit procedures in this area among others to obtain sufficient appropriate audit evidence:
The Company has material tax positions and litigations on a range of tax matters. This requires management to make to determine the possible outcome of significant uncertain tax positions and litigations and their consequent impact on related accounting and disclosures in the standalone financial statements. testing the design implementation and operating effectiveness of the Company’s key controls over identifying uncertain tax positions and matters involving litigations/disputes.
obtaining details of tax positions and tax litigations for the year and as at 31 March 2021 and holding discussions with designated management personnel.
assessing and analysing select key correspondences with tax authorities and inspecting external legal opinions obtained by management for key uncertain tax positions and tax litigations.
evaluating underlying evidence and documentation to determine whether the information provides a basis for amounts reserved / not reserved in the books of account.
involving our internal tax specialists and evaluating management’s underlying key assumptions in estimating the tax provisions and estimate of the possible outcome of significant tax litigations; and
in respect of tax positions and litigations assessing the computation of provisions and consequent impact on related accounting and disclosures in the standalone financial statements.

Other Information

The Company’s management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in theCompany’s annual report but does not include the standalone financial statements andour auditors’ report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated. If based on thework we have performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact. We have nothing to report in thisregard.

Management’s and Board of Directors’ Responsibility for the StandaloneFinancial Statements

The Company’s Management and Board of Directors are responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these standalonefinancial statements that give a true and fair view of the state profit/lossand affairsother comprehensive income changes in equity and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the IndianAccounting Standards (Ind AS) specified under section 133 of the Act. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring accuracy and completeness of the accounting records relevant tothe preparation and presentation of the standalone financial statements that give a trueand fair view and are free from material misstatement whether due to fraud or error.

In preparing the standalone financial statements the Management and Board of Directorsare responsible for assessing the Company’s ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless the Board of Directors either intends to liquidate the Companyor to cease operations or has no realistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company’s financialreporting process.

Auditor’s Responsibilities for the Audit of the Standalone FinancialStatements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor’s report that includes our opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these standalone financial statements. As part of an auditin accordance with SAs we exercise professional judgment and maintain professionalskepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the standalone financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether Standalone FinancialStatements 209 the company has adequate internal financial controls with referenceto standalone financial statements in place and the operating effectiveness of suchcontrols.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures in the standalone financial statements madeby the Management and Board of Directors.

Conclude on the appropriateness of the Management and Board of Directors use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast on theCompany’s ability to continue as a significant going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor’sreport to the related disclosures in the standalone financial statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor’s report. However future events orconditions may cause the Company to cease to continue as a going concern.

Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the standalone financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit deficiencies and significant audit findingsincluding any in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters.

We describe these matters in our auditors’ report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors’ Report) Order 2016

("the Order") issued by the Central Government in terms of section 143 (11)of the Act we give in the "Annexure A" a statement on the mattersspecified in paragraphs 3 and 4 of the Order to the extent applicable.

2. (A) As required by Section 143(3) of the Act we report that: (a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes 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 Standalone Balance Sheet the Standalone

Statement of Profit and Loss (including other comprehensive income) the StandaloneStatement of Changes in Equity and the Standalone Statement of Cash Flows dealt with bythis Report are in agreement with the books of account.

(d) In our opinion the aforesaid standalone financial statements comply with the IndAS specified under section 133 of the Act.

(e) On the basis of the written representations received from the directors as on 31March 2021 taken on record by the Board of Directors none of the directors isdisqualifiedas on 31 March 2021 from being appointed as a director in terms of Section164(2) of the Act.

(f) With respect to the adequacy of the internal financial controls with reference tostandalone financial statements of the Company and the operating effectiveness of suchcontrols refer to our separate Report in "Annexure B".

(B) With respect to the other matters to be included in the

Auditors’ 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 as at 31 March 2021 onits financial position in its standalone financial statements - Refer Note 3.33 to thestandalone financial statements;

(ii) The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses;

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

(iv) The disclosures in the standalone financial statements regarding holdings as wellas dealings in specified bank notes during the period from 8 November 2016 to 30 December2016 have not been made in these standalone financial statements since they do not pertainto the financial year ended 31 March 2021.

(C) With respect to the matter to be included in the Auditors’ Report undersection 197(16):

In our opinion and according to the information and explanations given to us theremuneration paid by the company to its directors during the current year is in accordancewith the provisions of Section 197 of the Act. The remuneration paid to any director isnot in excess of the limit laid down under Section 197 of the Act. The Ministry ofCorporate Affairs has not prescribed other details under Section 197(16) which arerequired to be commented upon by us.

For B S R & Co. LLP

Chartered Accountants

Firm’s Registration No.101248W/W-100022

Rakesh Dewan

Partner

Membership No.: 092212

ICAI UDIN.: 21092212AAAAAQ1046

Place: Gurugram India

Date: 23 April 2021

Annexure A referred to in our Independent Auditors’ Report

With reference to the Annexure A referred to in the Independent

Auditors’ Report to the members of HCL Technologies Limited on the standalonefinancial statements for the year ended 31 March 2021 we report the following:

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

(b) The Company has a regular programme of physical verification of its fixed assets bywhich all fixed are verified in a phased manner over a period of three years. In ouropinion this periodicity of physical verification by management is reasonable havingregard to the size of the Company and the nature of its assets. Pursuant to the programmecertain fixed assets were physically verified during the year and no materialdiscrepancies were noticed on such verification.

(c) According to the information and explanations given to us the title deeds ofimmovable properties included in property plant and equipment are held in the name ofCompany. In respect of immovable properties taken on lease and disclosed asright-of-use-assets in the standalone financial statements the lease agreements are inthe name of the Company.

(ii) Inventories lying with Company have been physically verified by the managementduring the year. In our opinion the frequency of such verification is reasonable. Asinformed to us no material discrepancies were noticed on such verification. Inventorieslying with third parties have been confirmed by them as at year end and no materialdiscrepancies were noticed in respect of such confirmation

(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 theAct. Accordingly the provisions of paragraph 3 (iii) (a) (b) and (c) of the Order arenot applicable to the Company.

(iv) According to the information and explanations given to us the Company has notentered into any transactions related to loans investments guarantees and securities towhich the provisions of Section 185 of the Act is applicable. Further according to theinformation and explanations given to us and based on our audit procedures performed weare of the opinion that provisions of section 186 of the Act have been complied in respectof loan guarantees and investments given by the Company. There are no securities providedby the Company as specified under the section 186 of the Act.

(v) According to the information and explanations given to us the Company has notaccepted any deposits as mentioned in the directives issued by the Reserve Bank of Indiathe provisions of section 73 to 76 or any other relevant provisions of the Act and therules framed thereunder. Accordingly the provisions of paragraph 3(v) of the Order is notapplicable to the Company.

(vi) According to the information and explanations given to us the Central Governmenthas not prescribed the maintenance of cost records under sub-section (1) of section 148 ofthe Act for any of the services rendered by the Company. Accordingly the provisions ofparagraph 3(vi) of the Order is not applicable to the Company.

(vii) (a) According to the information and explanations given to us and based on ourexamination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including Provident fund Employees’State Insurance Income Tax Goods and Service tax duty of Customs cess and othermaterial statutory dues have generally been regularly deposited during the year by theCompany with the appropriate authorities though there have been slight delays in case ofpayment of duty of customs. As explained to us the Company did not have any dues onaccount of duty of excise.

(b) According to the information and explanation given to us no undisputed amountspayable in respect of Provident Fund Employee’s State Insurance Income-Tax Goodsand Service tax duty of Customs Cess and other statutory dues were outstanding at theyear end for a period of more than six months from the date they became payable.

(c) According to the records of the Company the dues of Income-tax Service tax Salestax Goods and Service Tax Duty of Customs and Provident Fund which have not beendeposited by the Company with the appropriate authorities on account of any disputes as at31 March 2021 are as follows:

Name of the Statue Nature of the dues INR* (in crores)

Period to which amount relates

Forum where dispute is pending

Income Tax Act 1961 Income Tax 70.6

Financial year 2016-17

Deputy Commissioner of Income Tax-Delhi
Income Tax Act 1961 Income Tax 171.6 Financial Year 2003-04 2004- 05 2011-12 to Financial year 2015-16 and Financial year 2017-18

Commissioner of Income Tax (Appeals)

Income Tax Act 19611 Income Tax 10

Financial Year 2012-13 and Financial Year 2016-17

Commissioner of Income Tax (Appeals)

. Income Tax Act 19612 Income Tax 372.6

Financial Year 2003-04 to Financial Year 2006-07 and Financial year 2008-09 to Financial year 2010-11

Income Tax Appellate Tribunal-Delhi

Income Tax Act 19613 Income Tax 34.9

Financial Year 2012-13 to Financial Year 2014-15

Income Tax Appellate Tribunal-Delhi

Income Tax Act 19613 Income Tax 69.3

Financial Year 2006-07 to Financial Year 2011-12

Income Tax Appellate Tribunal-Mumbai

Income Tax Act 1961 Income Tax 1.2

Financial year 2002-03 and Financial year 2003-04

High Court of Delhi

Income Tax Act 19611 Income Tax 1.6

Financial Year 2006-07

High Court of Karnataka

Income Tax Act 1961 Income Tax 0.6

Financial Year 2008-09

High Court of Allahabad

Income Tax Act 1961 Income Tax 11.3

Financial Year 2002-03 to Financial Year 2004-05

Hon’ble Supreme Court of India

Bombay Sales Tax Act 1959 Value Added Tax 0.62

Financial Year 2004-05

Joint Commissioner (Appeals) Mumbai
Maharashtra VAT Act 2002 Value Added Tax 0.48

Financial Year 2009-10 and 2011-12

Joint Commissioner (Appeals) Mumbai
Central Sales Tax1956 Sales Tax 0.05

Financial Year 2012-13

Joint Commissioner (Appeals)

Central Sales Tax1956 Sales Tax 0.31

Financial Year 2014-15

Joint Commissioner (Appeals) Maharashtra

UP VAT Act 2008 Value Added Tax 0.11

Financial Year 2010-11

Joint Commissioner (Appeals) Noida

Maharashtra VAT Act 2002 Value Added Tax 7.94

Financial Year 2012-13

Joint Commissioner (Appeals) Large Tax Payer Unit Mumbai

 

Maharashtra VAT Act 2002 Value Added Tax 1.24

Financial Year 2014-15

Joint Commissioner (Appeals) Large Tax Payer Unit Mumbai

Goods and Service Tax Act 2017 Goods and Service Tax 4.35 October 2017 to September 2018 Additional Commissioner (appeals) of Goods and Service Tax
Goods and Service Tax Act 2017 Goods and Service Tax 5.35

October 2018 to December 2019

Additional Commissioner (appeals) of Goods and Service Tax
Customs Act 1962 Duty to Customs 0.27

Financial Year 2006-07

Common Adjudicating Authority (Directorate of Revenue Intelligence)
Customs Act 1962 Duty to Customs 2.21

Financial Year 1997-98 to Financial Year 1999-00

Office of Assistant Commissioner of Customs

Customs Act 1962 Duty to Customs 0.59

Financial Year 2007-08 and Financial Year 2009-10 to Financial Year 2013-14

Customs Excise Service Tax Appellant Tribunal Maharashtra

Finance Act 1994 read with Service Tax Rules1994 Service Tax 0.79

Financial Year 2006-07

High Court of Allahabad

Finance Act 1994 read with Service Tax Rules 1994 Service Tax 0.63

Financial Year 2006-07

Commissioner of Service Tax (Appeals)

Finance Act 1994 read with Service Tax Rules 1994 Service Tax 0.07

Financial Year 2006-07 to Financial Year 2011-12 and Financial Year 2009-10

Customs Excise Service Tax Appellant Tribunal Allahabad

Finance Act 1994 read with Service Tax Rules 1994 Service Tax 0.63

Financial Year 2011-12

Customs Excise Service Tax Appellant Tribunal Chennai

Finance Act 1994 read with Service Tax Rules 1994 Service Tax 0.37

Financial Year 2013-14

Customs Excise Service Tax Appellant Tribunal

Finance Act 1994 read with Service tax rules1994 Service Tax 1.36

Financial Year 2013-14

Commissioner of Service Tax (Appeals)

Finance Act 1994 read with Service tax rules1994 Service Tax 1.18

Financial Year 2007-10

High Court
Finance Act 1994 read with Service tax rules1994 Service Tax 15.56 April 2012 to September 2012

Customs Excise Service Tax Appellant Tribunal Allahabad

Finance Act 1994 read with Service tax rules1994 Service Tax 2.06

June 2011 to August 2014

Customs Excise Service Tax Appellant Tribunal Allahabad

Central Board Trustees Provident Fund 4.30

Financial Year 2007-08 to Financial Year 2013-14

Bombay High court

1 Pursuant to the scheme of amalgamation of HCL Eagle Limited HCL TechnologiesSolutions Limited and HCL Comnet Limited.

2 The Company has made payment of tax liability for financial year 2004-05 amounting toRs. 0.6 crores under Vivad Se Vishwas

Scheme in the current year and is awaiting final acceptance the Income tax Department.

3 The Company has made payment of tax liability for financial year 2007-08 to financialyear 2014-15 amounting to Rs. 54.84 crores under Vivad Se Vishwas Scheme in the currentyear and is awaiting final acceptance from the Income tax Department.

* Amount represents amount demanded in demand orders and excludes interest and penaltyas may be applicable thereon. Total amount deposited under protest / adjusted againstrefunds in respect of Income tax is Rs. 139.61 Crores (except amount considered in Vivadse Vishwas Scheme disclosed above) Custom Duty Rs. 0.69 Crores Service tax is Rs.1.31 Crores Goods and Service tax is Rs. 0.97 Crores Value added tax is Rs. 0.71 Croresand Provident Fund is Rs. 0.89 Crores.

(viii) In our opinion and according to the information and explanations given to us andbased on our examination of the records of the Company the Company has not defaulted inrepayment of loans or borrowings to banks. The Company did not have any outstanding loansor borrowings from financial institutions or government or dues to debenture holdersduring the year.

(ix) According to the information and explanations given to us the Company has notraised any money by way of initial public offer / further pubic offer / debt instruments.In our opinion and according to the information and explanations given to us the termloans taken by the Company have been applied for the purposes for which they were raised.

(x) To the best of our knowledge and according to the information and explanationsgiven to us no material fraud by the Company or on the Company by its officers oremployees has been noticed or reported during the course of our audit.

(xi) In our opinion and according to information and explanations given to us and basedon our examination of the records of the Company the managerial remuneration has beenprovided/ paid by the Company in accordance with the provisions of Section 197 read withSchedule V to the Act.

(xii) According to the information and explanations given to us in our opinion theCompany is not a Nidhi Company as prescribed under Section 406 of the Act. Accordinglyparagraph 3(xii) of the Order is not applicable to the Company.

(xiii) According to the information and explanations given to us and based on of ourexamination of the records of the Company all the transactions with the related partiesare in compliance with the provisions of Sections 177 and 188 of the Act where applicableand the details have been disclosed in the notes to the standalone financial statements asrequired by the applicable accounting standards.

(xiv) According to the information and explanation given to us and based on of ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year. Accordingly paragraph 3(xiv) of the Order is not applicable to the Company.

(xv) According to information and explanations given to us and based on our examinationof the records of the Company the Company has not entered into any non-cash transactionswith directors or persons connected with them. Accordingly paragraph 3(xv) of the Orderis not applicable to the Company. (xvi) According to the information and explanationsgiven to us the Company is not required to be registered under section 45-IA of theReserve Bank of India Act 1934.

For B S R & Co. LLP

Chartered Accountants

Firm’s Registration No.101248W/W-100022

Rakesh Dewan

Partner

Membership No.: 092212

ICAI UDIN.: 21092212AAAAAQ1046

Place: Gurugram India

Date: 23 April 2021

Annexure B to the Independent Auditors’ report on the standalone financialstatements of HCL Technologies Limited for the year ended 31 March 2021 Report on theinternal financial controls with reference to the aforesaid standalone financialstatements under Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013(Referred to in paragraph 2(A)(f) under ‘Report on Other Legal and RegulatoryRequirements’ section of our report of even date)

Opinion

We have audited the internal financial controls with reference to standalone financialstatements of HCL Technologies Limited ("the Company") as of 31 March 2021 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

In our opinion the Company has in all material respects adequate internal financialcontrols with reference to standalone financial statements and such internal financialcontrols with reference to standalone financial statements were operating effectively asat 31 March 2021 based on the internal financial controls with reference to standalonefinancial statements criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia (the "Guidance Note").

Management’s Responsibility for Internal Financial Controls

The Company’s management and the Board of Directors are responsible forestablishing and maintaining internal financial controls based on the internal financialcontrols with reference to standalone financial statements criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote. These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company’spolicies the safeguarding of its assets the prevention and detection of frauds anderrors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013(hereinafter referred to as "the Act").

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company’s internal financialcontrols with reference to standalone based on our audit. We conducted our audit inaccordance with the

Guidance Note and the Standards on Auditing prescribed under section 143(10) of theAct to the extent applicable to an audit of internal financialcontrols with reference tostandalone financial statements. Those Standards and the Guidance Note require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financialcontrols with reference to standalonefinancial statements were established and maintained and whether such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to standalone financialstatements and theiroperating effectiveness. Our audit of internal financialcontrols with reference tostandalone financialstatements included obtaining an understanding of such internalfinancialcontrols assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor’s judgement includingthe assessment of the risks of material misstatement of the standalonefinancialstatements 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 Company’s internal financial controlswith reference to standalone financial statements.

Meaning of Internal Financial controls with Reference to Standalone FinancialStatements

A company’s internal financial controls with reference to standalone financialstatements is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of standalone financial statements for externalpurposes in accordance with generally accepted accounting principles. A company’sinternal financial controls with reference to standalone financial statements includethose policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of standalone 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 ofunauthorised acquisition use or disposition of the company’s assets that could havea material effect on the standalone financial statements.

Inherent Limitations of Internal Financial controls with Reference to StandaloneFinancial Statements

Because of the inherent limitations of internal financial controls with reference tostandalone financial statements including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols with reference to standalone financial statements to future periods are subjectto the risk that the internal financial controls with reference to standalone financialstatements may become inadequate because of changes in conditions or financialstatementsthat the degree of compliance with the policies or procedures maydeteriorate.

For B S R & Co. LLP

Chartered Accountants

Firm’s Registration No.101248W/W-100022

Rakesh Dewan

Partner

Membership No.: 092212

ICAI UDIN.: 21092212AAAAAQ1046

Place: Gurugram India

Date: 23 April 2021

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