MIRA
INFORM REPORT
|
Report Date : |
11.12.2008 |
IDENTIFICATION
DETAILS
|
Name : |
HCL INFOSYSTEMS LIMITED |
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Registered
Office : |
806, Siddharth,
96, Nehru Place, New Delhi -110 019 |
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Country : |
India |
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Financials (as
on) : |
30.06.2008 |
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Date of
Incorporation : |
17.04.1986 |
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Com. Reg. No.: |
23955 |
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CIN No.: [Company Identification No.] |
L72200DL1986PLC023955 |
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TAN No.: (Tax Deduction
& Collection Account No.) |
DELH03832D |
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Legal Form : |
Public Limited
Liability Company. The Company’s Shares are Listed on the Stock Exchanges. |
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Line of
Business : |
Manufacturing of Computer
Systems and Computer Peripherals. |
RATING &
COMMENTS
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MIRA’s Rating
: |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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Maximum Credit
Limit : |
USD 50000000 |
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Status : |
Good |
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Payment
Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a
leading Information Technology Company having satisfactory track. Directors
are reported as experienced, respectable and resourceful professionals. Their
trade relations are fair. Payments are reported as correct and as per
commitments. Information Technology industry and dot.com company has shown
downward trend due to recession in U.S.A. and various other reasons. The company can
be considered good for normal business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered
Office : |
806, Siddharth,
96, Nehru Place, New Delhi -110 019, India |
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Tel. No.: |
91-11-26444305/26464921/262112941/26489078/
26418567-69/26430051 |
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Fax No.: |
91-11-26212687 |
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E-Mail : |
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Website : |
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Corporate
Office : |
E-4, 5 and 6, Sector XI, Noida - 201 301,
Uttar Pradesh, India |
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Tel. No.: |
91-120-2526490 / 2526518
/ 19 / 2520977 |
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Fax No.: |
91-120-2525196 /
2550923 |
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E-Mail : |
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Plants : |
CHENNAI WORKS
UNIT - I
299, Arcot Road, Vadapalani,
Chennai-600026, Tamilnadu Tel. No.
91-44-24800156/24843566/24838316 Fax. No.
91-44-24834563 E-mail. pattabi@help.com/veera@help.com UNIT - II
Shed 5, 6,
Tiru-vi-Ka Industrial Estate, Guindy, Chennai-600032, Tamilnadu Tel. No.
91-44-22342815/16/22340165 Fax. No.
91-44-22340161 E-mail. rs@help.com PONDICHERRY WORKS
·
R.S. No.
34/4 to 34/7 and part of 34/1, Sedarpet, Pondicherry – 605111 ·
R.S. No. 105/4-5,
Sedarpet, Pondicherry-605111 ·
R.S. No.
107/5,6,7, RS No. 108/10A, RS No :
110/3, 5,11,12 and R.S. No. 108/9 and 12, Sedarpet, Pondicherry – 605 111, Tamilnadu, India Tel No.: 91-120-2520977 Fax No.:
91-120-2520977 ·
Plot No.78,
South Phase, Ambattur Industrial Estate, Chennai-600058, Tamilnadu, India Tel No: 91-44-26258444 / 2625 8292 / 2625 8969 Fax No: 91-44-2624 8160 Email : chnplant@hclp.com ·
Plot
Nos.1,2, 27 and 28, Sector 5, 11E-Pantnagar, Rudrapur, District Udham Singh
Nagar, Uttarakhand – 263 145 ·
299 (Old No.
158), Arcot Road, Vadapalani, Chennai – 605 111, Tamilnadu Tel No: 91-44-52006500 (30 lines) Fax No: 91-44-24834563 Email : corporate@hclp.com
·
Shed S5 and
S6, Tiru-vi-Ka, Industrial Estate, Guindy, Chennai – 600 052, Tamilnadu ·
J. K.
Towers, 100 Feet Road, Pondicherry - 605 013 ·
Spl-A2,
Industrial Estate, Thattanchavadi,
Industrial area, Pondicherry - 605 005 Tel. No. 91-413-2248284 / 2248284 / 2248587 /2248382 / 2249281 Fax. No. 91-413-2249586 E-mail. sridhar@help.com |
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Rack Distributors
: |
· Netfinity Technologies (India) Private Limited Address: 30/55, Spurtank Road, Chetpet, Chennai – 600 031 , India Tel no: 91-44-8278101 Fax No: 91-44-8211764 Email: netfin@eth.net |
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Sales and Support
Centres : |
·
Shed 5, 6,
Tiru-vi-Ka Industrial Estate, Guindy, Chennai-600032, Tamilnadu Tel. No. 91-44-22342815/22342816/22340165 Telefax. No. 91-44-22340161 E-mail. mktg_chn@help.com Mobile. No. 9840139847 ·
306, Tulsani
Chambers, Nariman Point, Mumbai - 400021, Maharashtra Tel. No. 91-22-22815471/22815472 Mobile. No. 9820456196 E-mail. mktg_bom@help.com ·
Building No.
8, Krishna Market, Kalkaji, New Delhi -110019 Tel. No. 91-11-26293957 Mobile. No. 9868150599 E-mail. mktg_del@help.com ·
No. 7, Race
Course Road, Coimbatore - 641018 Tel. No. 91-422-2214933/2200375 Mobile. No. 9843036831 E-mail. mktg_blr@help.com ·
B-10, Indian
Airlines Employees Colony, Begumpet, Secunderabad - 500003, Andhra Pradesh Tel. No. 91-40-27902912 Mobile. No. 9848022078 E-mail. mktg_hyd@help.com ·
306, Tulsani
Chambers, Nariman Point, Mumbai - 400021, Maharashtra Tel. No. 91-22-22815471/22815472 Mobile No. 9820456196 E-mail. mktg_bom@hclp.com ·
Building No.
8, Krishna Market, Kalkaji, New Delhi - 110019 Tel. No. 91-11-26293957 Mobile. No. 9868150599 E-mail. mktg_del@help.com Other sales
offices located at :- Ahmedabad,
Bangalore, Baroda, Bhopal, Chandigarh, Chennai, Cochin, Coimbatore, Guwahati,
Hyderabad, Indore, Jaipur, Kanpur, Kolkata, Kozhikode, Lucknow, Madurai,
Mumbai, Nagpur, Noida, Patna, Pune. Raipur, Ranchi, Thiruvanathapuram,
Trichy, Vijaywada and Vishakapatnam. |
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Branches : |
Located at :- A-10 and 11, Sector
III, Noida, District Ghaziabad - 201 301, Uttar Pradesh, India |
DIRECTORS
|
Name : |
Mr. Ajai Chowdhry |
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Designation : |
Chairman and Chief Executive Officer |
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Date of
Birth/Age : |
56 Years |
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Qualification
: |
Graduate in Electronic and Telecommunication Engineering, BE |
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Experience : |
35 Years |
|
Date of
Appointment : |
01.03.1989 |
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Previous
Employment : |
Far East Computers Pte Limited |
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|
Name : |
Mr. Ravi
Thumboochetty |
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Designation : |
Whole-time Director cum Chief Operating officer |
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Date of
Birth/Age : |
59 Years |
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Qualification
: |
Engineer from BMS College of Engineering – Bangalore, BE / B. Tech |
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Experience : |
34 Years |
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Date of
Appointment : |
12.09.1980 |
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|
Name : |
Mr. T. S.
Purushothaman |
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Designation : |
Whole-time Director |
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Date of
Birth/Age : |
65 Years |
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Qualification
: |
Engineering from Trichur Engineering College, Trichur |
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Experience : |
41 Years |
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|
Name : |
Mr. Rajinder Pal
Khosla |
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Designation : |
Director |
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Date of
Birth/Age : |
74 Years |
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Qualification
: |
Graduate from Emmanuel College, Cambridge (U. K.) |
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Experience : |
40 Years |
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|
Name : |
Mr. Subroto
Bhattarchaya |
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Designation : |
Director |
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Date of
Birth/Age : |
64 Years |
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Qualification
: |
Chartered Accountants |
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Experience : |
39 Years |
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|
Name : |
Mr. D. S. Puri |
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Designation : |
Director |
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Date of
Birth/Age : |
55 Years |
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Qualification
: |
Commerce Graduate – Kolkata University |
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Experience : |
32 Years |
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|
Name : |
Mr. E. A.
Kshirsagar |
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Designation : |
Director |
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Date of
Birth/Age : |
63 Years |
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Qualification
: |
Chartered Accountants |
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Experience : |
37 Years |
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|
Name : |
Mrs. Anita
Ramachandran |
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Designation : |
Director |
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Date of
Birth/Age : |
49 Years |
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Qualification
: |
Management Graduate from Jamnalal Bajaj Institute |
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Experience : |
25 Years |
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|
Name : |
Mr. J. V.
Ramamurthy |
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Designation : |
Whole Time Director |
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Date of
Birth/Age : |
53 years |
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Qualification
: |
M.E. |
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Experience : |
27 years |
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Date of
Appointment : |
01.07.1998 |
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Previous
Employment : |
HCL Office Automation Limited, President and CEO |
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Name : |
Mr. Narasimhan Jegadeesh |
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Designation : |
Director |
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Date of Appointment : |
24.01.2006 |
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|
Name : |
Mr. V N Koura |
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Designation : |
Director |
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Date of Appointment : |
24.01.2006 |
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|
Name : |
Mr. S Bhattacharya |
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Designation : |
Director |
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Name : |
Mr. R P Khosla |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Sushil Kumar
Jain |
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Designation : |
Company Secretary |
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|
Name : |
Mr. Sandeep
Kanwar |
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Designation : |
CFO and Executive Vice President |
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Date of
Birth/Age : |
46 years |
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Qualification
: |
F.C.A. |
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Experience : |
24 years |
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Date of
Appointment : |
01.03.1988 |
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Previous
Employment : |
Oriental Carbon and Chemicals Limited, Accounts Officer |
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Name : |
Mr. George Paul |
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Designation : |
Executive Vice President |
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Date of
Birth/Age : |
46 years |
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Qualification
: |
B. Tech. |
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Experience : |
24 years |
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Date of
Appointment : |
18.07.1983 |
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Previous
Employment : |
Larsen and Toubro |
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Name : |
Mr. Yuvraj
Bahadur |
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Designation : |
Executive Vice President |
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Name : |
Mr. Amanpreet
Singh Bedi |
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Designation : |
Associate Vice President |
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Date of
Birth/Age : |
41 years |
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Qualification
: |
B.E. |
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Experience : |
20 years |
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Date of
Appointment : |
07.07.1986 |
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|
Name : |
Mr. D Baskar |
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Designation : |
Vice President |
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Date of
Birth/Age : |
44 years |
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Qualification
: |
B.E. |
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Experience : |
22 years |
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Date of
Appointment : |
27.08.1984 |
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|
Name : |
Mr. Adhikari,
Saurav |
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Designation : |
President |
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Name : |
Mr. Mohan U. V. |
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Designation : |
General Manager |
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Name : |
Mr. Subodh Kumar
Sharma |
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Designation : |
Area Customer Engineer Manager |
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Name : |
Mr. C. D. Murthy |
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Designation : |
Associate Vice President |
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Name : |
Mr. M. P. Singh |
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Designation : |
Deputy General Manager |
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Name : |
Mr. A. K. Jain |
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Designation : |
General Manager |
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|
Name : |
Mr. Manohar Lal Taneja |
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Designation : |
Executive Vice President |
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Date of
Birth/Age : |
60 years |
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Qualification
: |
B.E., M.B.A. |
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Experience : |
38 years |
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Date of
Appointment : |
30.05.1986 |
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Previous
Employment : |
IDM |
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|
Name : |
Mr. Hari Baskaran |
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Designation : |
Executive Vice President |
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Date of
Birth/Age : |
57 years |
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Qualification
: |
B.E. |
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Experience : |
33 years |
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Date of
Appointment : |
18.08.2003 |
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Previous
Employment : |
Xerox Modi Corporation Limited, Executive Director |
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|
Name : |
Mr. Padiyal Naresh |
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Designation : |
Vice President |
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Date of
Birth/Age : |
45 years |
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Qualification
: |
B.E. |
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Experience : |
22 years |
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Date of
Appointment : |
27.08.1984 |
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|
Name : |
Mr. Rajeev Asija |
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Designation : |
Executive Vice President |
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Date of
Birth/Age : |
44 years |
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Qualification
: |
B.E. |
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Experience : |
23 years |
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Date of
Appointment : |
01.05.1986 |
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Previous
Employment : |
HCL Limited, Senior Customer Engineer |
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|
Name : |
Mr. Rakesh Mehta |
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Designation : |
Executive Vice President |
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Date of
Birth/Age : |
50 years |
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Qualification
: |
I.E.T.E. |
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Experience : |
27 years |
|
Date of
Appointment : |
29.12.1988 |
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Previous
Employment : |
ORG Systems, Customer Engineer Specialist |
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|
Name : |
Ms. Suman Ghose Hazra |
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Designation : |
Executive Vice President |
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Date of
Birth/Age : |
53 years |
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Qualification
: |
B.Com, C.A., ICWA |
|
Experience : |
24 years |
|
Date of
Appointment : |
15.06.1995 |
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Previous
Employment : |
Network Limited |
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|
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|
Name : |
Mr. Rajendra Kumar |
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Designation : |
Executive Vice President |
|
Date of
Birth/Age : |
49 years |
|
Qualification
: |
B.Com |
|
Experience : |
31 years |
|
Date of
Appointment : |
01.05.1986 |
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Previous
Employment : |
HCL Limited, Deputy Purchase Manager |
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|
|
Name : |
Mr. Pattabiraman S. |
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Designation : |
Executive Vice President |
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Date of
Birth/Age : |
51 years |
|
Qualification
: |
B.Sc., A.C.A. |
|
Experience : |
27 years |
|
Date of
Appointment : |
01.07.1998 |
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Previous
Employment : |
HCL Peripherals Limited, Senior Manager |
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|
|
|
Name : |
Mr. R Mahendran |
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Designation : |
General manager |
|
Date of
Birth/Age : |
39 years |
|
Qualification
: |
B.Com, Diploma |
|
Experience : |
19 years |
|
Date of Appointment
: |
01.07.1998 |
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Previous
Employment : |
Network Limited – Territory Manager |
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|
|
|
Name : |
Mr. T P Jayaprakashan |
|
Designation : |
General manager |
|
Date of
Birth/Age : |
40 years |
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Qualification
: |
Diploma (polytechnic) Electronics and Telecommunication |
|
Experience : |
20 years |
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Date of
Appointment : |
11.08.1986 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 30.06.2008)
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Promoters / Promoters Group |
91874611 |
53.68 |
|
Mutual Funds / UTI |
6156657 |
3.60 |
|
Financial Institutions / Banks |
4457496 |
2.60 |
|
Foreign Institutional Investors |
55391674 |
32.37 |
|
Bodies Corporate |
986006 |
0.57 |
|
Indian Public |
11752012 |
6.87 |
|
NRI / OCBs |
531200 |
0.31 |
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|
|
|
Total |
171149656 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Computer Systems and Computer Peripherals. |
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Products : |
Networking
Products ·
Hubs ·
Switches ·
Access
Products ·
Modules/converters Terminal
Products ·
Turboterm ·
Graph
Term ·
Multilingual
Terminal Structured
Cabling ·
Patch
Cord ·
Patch
Panel ·
Wall
Outlet Peripherals ·
Monitor ·
Keyboards ·
Multi
Media ·
Touch
Screen Monitor/Kiosks Generic Names of
Three Principal Products/Services of Company (As per monetary terms) are :
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Exports : |
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Countries: |
·
ASEAN ·
Europe ·
Japan ·
USA |
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Imports : |
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Countries: |
·
ASEAN ·
Europe ·
Japan ·
USA |
PRODUCTION STATUS
The company’s production
Status for the year ended 30th June 2007 was as under: -
|
Class of Goods |
Units |
Installed
Capacity |
Actual
Production |
|
Computers/Micro Processor Based Systems |
Nos. |
1400000 |
619216 |
|
Data Graphic/Display Monitor/Terminals, Hubs, etc |
Nos. |
450000 |
512717 |
GENERAL
INFORMATION
|
Suppliers : |
· Shakhti Data Cables · Bajaj Printer and Packers |
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No. of
Employees : |
5753 |
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Bankers : |
·
State Bank
of India, New Delhi ·
Canara Bank ·
Bank of
Baroda, New Delhi ·
UCO Bank,
New Delhi ·
Canara Bank,
New Delhi ·
State Bank
of Patiala, New Delhi ·
Indian Bank,
New Delhi ·
State Bank
of Saurashtra, New Delhi ·
Standard
Chartered Bank, New Delhi ·
Societe
Generale, New Delhi ·
ICICI Bank
Limited, New Delhi ·
HDFC Bank
Limited, New Delhi ·
The Hongkong
and Shanghai Banking Corporation Limited |
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Facilities : |
Notes:- 1) Amount payable within one year is
Rs.3526.600 millions (2006 - Rs.2014.700 millions). 2) Public Deposits represent matured
deposits. |
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Banking Relations : |
Satisfactory |
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Auditors : |
Price Waterhouse Chartered Accountants |
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Address : |
New Delhi |
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Associates : |
·
HCL Technologies (Mumbai)
Limited ·
HCL Global Alliance Limited ·
HCL Peripherals Limited ·
HCL Perot Systems Limited ·
OWNHCL Trust ·
Shri Sivasubramaniya Nadar Educational and Charitable Trust |
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Subsidiaries : |
· HCL Infinet Limited (formerly-HCL Commerce Limited) · Infosystems Australia Pty Limited · FEC Infosystems Pte Limited, Singapore · FEC Distribution Pte Limited · Far East Computers (M) Sdn. Bhd, Malaysia · HCL Infosystems (Malaysia) Sdn. Bhd · Far East Computers Marketing (M) Sdn. Bhd · Infosystems (Bermuda) Limited · Infosystems (Europe) Limited · Infosystems (America) Inc. · HCL Corporation Limited · Microcomp Limited · HCL Comnet Limited · HCL Technologies BPO Services Limited · DSL Software Limited · Shipara Technologies Limited · HCL Technologies (Malaysia) Sdn Bhd · HCL Singapore Pte Limited · HCL Infosolutions Limited · HCL Comnet Systems and Services Limited · Universal Office Automation Limited ( formerly Known as HCL Office Automation Limited) · Stelmac Engineering Private Limited |
CAPITAL STRUCTURE
(As on 30.06.2008)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
550000000 |
Equity Shares |
Rs.2/- each |
Rs.1100.000 millions |
|
500000 |
Preference
Shares |
Rs.100/- each |
Rs.50.000 millions |
|
|
Total |
|
Rs.1150.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
171149656 |
Equity Shares |
Rs.2/- each |
Rs.342.300
millions |
Notes:-
1. Paid up share
capital includes :
·
50447295 (2007 - 50447295) Equity Shares of Rs.2/- each issued pursuant
to contract without payment
·
being received in cash.
·
53182765 (2007 - 53182765) Equity Shares of Rs.2/- each Bonus shares
issued from Securities Premium
·
Account.
·
11522340 (2007 - 9605355) Equity Shares of Rs.2/- each issued pursuant
to the exercise of options granted
·
under Employee Stock Option Scheme 2000.
·
80021 (2007 - Nil) Equity Shares of Rs.2/- each issued pursuant to the
exercise of options granted under Employee Stock Based Compensation Plan 2005.
2. Of the above
subscribed shares, 74651388 (2007 - 74651388) Equity Shares of Rs.2/- each are
held by HCL Corporation Limited.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
30.06.2008 |
30.06.2007 |
30.06.2006 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share Capital |
342.300 |
338.300 |
337.500 |
|
|
2] Share
Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves &
Surplus |
9720.300 |
8113.800 |
3775.900 |
|
|
4] (Accumulated
Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
10062.600 |
8452.100 |
4113.400 |
|
|
|
|
|
|
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
120.200 |
444.900 |
|
|
2] Unsecured
Loans |
3526.600 |
2238.700 |
1511.500 |
|
TOTAL BORROWING
|
3526.600 |
2358.900 |
1956.400 |
|
|
DEFERRED TAX
LIABILITIES |
68.500 |
124.800 |
115.400 |
|
|
|
|
|
|
|
TOTAL
|
13657.700 |
10935.800 |
6185.200 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
1385.700 |
984.800 |
633.200 |
|
Capital work-in-progress
|
138.900 |
213.600 |
163.800 |
|
|
|
|
|
|
|
INVESTMENT
|
2150.200 |
2797.800 |
1353.900 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS &
ADVANCES
|
|
|
|
|
|
|
Inventories
|
8983.700
|
7917.300
|
2403.100
|
|
|
Sundry Debtors
|
12414.600
|
10025.100
|
5112.600
|
|
|
Cash & Bank Balances
|
3173.600
|
1939.400
|
1452.900
|
|
|
Other Current Assets
|
922.600
|
959.400
|
749.700
|
|
|
Loans & Advances
|
1399.400
|
677.200
|
378.700
|
Total Current Assets
|
26893.900
|
21518.400
|
10097.000
|
|
Less :
CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
16202.500
|
13767.800
|
5566.600
|
|
|
Provisions
|
708.500
|
811.000
|
496.100
|
Total Current Liabilities
|
16911.000
|
14578.800
|
6062.700
|
|
Net Current Assets
|
9982.900
|
6939.600
|
4034.300
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
13657.700 |
10935.800 |
6185.200 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
30.06.2008 |
30.06.2007 |
30.06.2006 |
|
|
Sales Turnover |
124114.400 |
116481.200 |
23813.600 |
|
|
Other Income |
399.400 |
487.300 |
273.300 |
|
|
Total Income |
124513.800 |
116968.500 |
24086.900 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
4344.700 |
4299.900 |
1315.000 |
|
|
Provision for Taxation |
1297.200 |
1121.400 |
182.800 |
|
|
Profit/(Loss) After Tax |
3047.500 |
3178.500 |
1132.200 |
|
|
|
|
|
|
|
|
Earnings in
Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
736.300 |
816.500 |
627.800 |
|
|
Commission Earnings |
1.400 |
1.200 |
1.300 |
|
|
Other Earnings |
240.200 |
51.400 |
156.900 |
|
Total Earnings |
977.900 |
869.100 |
786.000 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
16171.700 |
12480.100 |
9840.400 |
|
|
Stores & Spares |
455.100 |
458.900 |
26.700 |
|
|
Capital Goods |
2.300 |
20.700 |
6.600 |
|
|
Others |
3681.600 |
5507.300 |
3147.300 |
|
Total Imports |
20310.700 |
18467.000 |
13021.000 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Cost of Sales and Services |
113696.200 |
107818.000 |
|
|
|
Personnel |
2929.600 |
2177.300 |
|
|
|
Administration, Selling, Distribution and others |
2867.200 |
2345.100 |
|
|
|
Repair and Maintenance |
115.000 |
97.200 |
|
|
|
Finance Charges |
397.600 |
105.500 |
|
|
|
Salaries, Wages, Bonus, etc. |
0.000 |
0.000 |
|
|
|
Finance Charges |
0.000 |
0.000 |
|
|
|
Depreciation & Amortization |
163.500 |
125.500 |
|
|
|
Other Expenditure |
0.000 |
0.000 |
|
|
Total
Expenditure |
120169.100 |
112668.600 |
22771.900 |
|
QUARTERLY RESULTS
|
|
30.09.2008 |
|
Type |
1st
Quarter |
|
Sales
Turnover |
30764.800 |
|
Other
Income |
(101.300) |
|
Total
Income |
30663.500 |
|
Total
Expenditure |
29572.700 |
|
Operating
Profit |
1090.800 |
|
Interest |
77.200 |
|
Gross
Profit |
1013.600 |
|
Depreciation |
40.300 |
|
Tax |
284.500 |
|
Reported
PAT |
674.000 |
KEY RATIOS
|
PARTICULARS |
|
30.06.2008 |
30.06.2007 |
30.06.2006 |
|
PAT / Total Income |
(%) |
2.45
|
2.72 |
4.70 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
3.50
|
3.69 |
5.52 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
15.36
|
19.11 |
12.26 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.43
|
0.51 |
0.32 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.03
|
2.00 |
1.95 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.59
|
1.48 |
1.67 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Incorporated in Apr.'86, Subject previously known as HCL Hewlett-Packard
is promoted by a group of technocrats. In May '86, the company took over
Hindustan Computers, Hindustan Reprographics, Hindustan Instruments and Indian
Computer Software Company. In 1991, the company entered into a joint venture
with Hewlett-Packard Co, US, for combining the computer manufacturing,
marketing and servicing activities of the company and Hewlett Packard India
Private Limited.
The company manufactures computer systems at Noida, Uttar Pradesh and computer
peripherals at Madras. It also manufactures multi-user super-minis and
engineering workstations, the technology for which is being provided by
Hewlett-Packard Company, US. It came out with a rights issue in Nov.'92 to meet
the cost of setting up a test and repair centre; acquire the computer division
from Hewlett-Packard India Private Limited; and to modernise the computer
manufacturing facilities.
In 1997-98, the company acquired the business of HCL Infosolutions, HCL
Peripherals, and the customer support activities of HCL office Automation
Limited. In 1998-99, it entered into a relationship with Samsung, Korea to
market and support their range of key telephone systems. It also tied up with
Novell to become the largest Novell authorised support centre.
In 1999-2000, the most significant development has been the formation of its
internet subsidiary, HCL Infinet a value added B2B and B2C internet services
provider.
The company had received SEI CMM Level IV accreditation for its software
development processes and the ISO 9001 certification for its manufacturing
processes. The company also expanded its operations internationally, launching
operations in Bangladesh in September 2000.
The company has tied-up with Pitney Bowes, a Fortune 500 company and global
provider of integrated mail messaging and document management solutions, to
provide world class mass mailing solutions.
The alliance with Sun Microsystems India Private Limited forged during 2002, to
distribute the complete line of Sun Enterprises Products, will surely enhances
the spectrum of services provided by the company to the customer.
The company has launched a new innovative product in the commercial space were
the 6 in PC during 2004-05. Further the company has broken the PC price barrier
by launching EzeeBee Pride at Rs.12990/- making branded PCs more affordable
than ever before. The Company has also introduced new products like Konica
Minolta Printers, LCD TVs and Audio Visual System Integration (AVSI)
Solutions.
The Company has increased its installed capacity of Computer/Micro Processor
Based Systems and Data Graphic/Display Monitor/Terminals, Hubs etc by 75000 Nos
and 75000 Nos Respectively during 2004-05. With this expansion the total
installed capacity of Computer/Micro Processor Based Systems and Data Graphic/Display
Monitor/Terminals, Hubs etc has increased to 600000 NOS and 425000 NOS
respectively.
The company has sub-divided the face value of each equity share of Rs.10/- into
5 equity shares of Rs.2/-each with effect from July 15, 2005
In 2006, The Company has increased its installed capacity of Computer/Micro
Processor Based Systems by 55000 Nos. With this expansion the total installed
capacity of Computer/Micro Processor Based Systems has increased to 1150000
Nos.
The company and Nokia jointly announced a long-term distribution strategy for
further developing the rapidly growing Indian Mobile phones market. As per the
revised agreement, Nokia would add certain areas for direct billing by them so
as to ultimately maintain a balanced channel mix, for GSM Handsets. As a part
of this announcement, the company's distribution agreement with Nokia has been
extended for the next several years.
A composite Scheme of Arrangement (Scheme) for amalgamation of the Office
Automation and Telecommunication business (remaining business) of HCL Infinet
Limited, the wholly owned subsidiary with the company after demerger of the
Networking business of HCL Infinet Limited to Microcomp Limited. The scheme on
its sanction by Hon'ble High Court of Delhi shall effective from April 1,
2006.
OVERVIEW
India is poised to see strong growth in years to come, veiling the current
volatile market trends and inflation worries. Large investments are planned
across various sectors by private, PSU and government initiatives.
BUSINESS OUTLOOK
This year, IT industry is expected to grow by 20% over 2007, as per IDC, which
is amongst the highest rates of growth in the world. With employment to 21.300
millions households already in place, the National e-Governance Plan (NEGP) is
surging ahead with investments of Rs.230000 millions planned for initial five
years, for identified core projects.
The current technology trends in ICT point to increasing convergence of data,
voice and networks, so that different devices can be networked /managed onsite
and remotely. A computer at the heart of every ICT solution is clearly the
emerging trend and is likely to follow for years ahead. Evolving on the media
front, India is becoming a hub for creativity and animation. With an
anticipated demand of Rs. 22000 millions of broadcasting equipment by 2011, the
country is anticipated to ride on the digitisation wave, in all aspects
encompassing content creation, broadcasting etc.
The power sector reforms are focusing on rural electrification, substation automation
and management of both demand and supply sides through smart metering and
audits. India is progressively joining the world forces in adapting to Green
practices and energy conservation. The services sector too is bound to
accelerate in providing last mile connectivity through Broadband Penetration,
Roll Out and Value Added Services.
Infrastructure will continue to pave the way for developing India on a faster
scale and investments are planned in several areas, e.g. modernisation of
Airports with the latest ICT equipments being deployed for security and
vigilance, baggage clearance, flight arrival and departure systems, passenger
and luggage check in systems. The Ministry of Railways has formally announced
the plans for technology upgradation in railways in areas like passenger
information system, automatic train controls, and signalling etc.
Today, IT has gained an active role in the industry functioning rather than
just being the facilitator. It is playing much larger roles in economic reforms
and financial inclusion across the country. For BFSI Institutions, IT not only
enables them to understand their customer's needs and service them better, but
also to automate operations and strengthen systems.
Healthcare industry has now embarked upon technology in areas like digitisation
of patient and medical history, hospital information systems, picture archival
and control systems and tele-medicine.
With consumers enjoying higher purchasing power and lifestyle preferences,
these investments are creating opportunities for technology equipments, digital
lifestyle products and system integration.
THE HCL OF TODAY
Subject over its three decades Of leadership in the Indian ICT Market has set
new benchmarks and has created newer markets.
What began as a dream to build computers for the Indian market around the then
newly emerging technology of microprocessor, Subject today India's prermier
information enbling and country's leading ICT system integrtor and Distribution
company.
Subject's strong foundation is in its ability to understand technology and its
investment of quality time in building customer and partner relationships for
over three decades. Subject is today an organisation that offers the full
spectrum of Information, office automation, technology products and services to
its customers. Subject has been consistently ranked as a market leader in India
for various product categories both its own and those of its partners. The
Company over the last three decades has built the countries largest
multi-technology ICT product Service Network with a direct presence in over 360
locations across the country and an equally strong franchisee service network.
Further subject is today India's largest vertically integrated ICT
manufacturing house with its State-of the-Art manufacturing facilities at
Rudrapur, Chennai and Puducherry.
Subject is leveraging its core ICT competency to harness new opportunities in
India. The company has taken a number of new initiatives to strengthen its
presence in the previous years newly identified SI verticals. Today, Subject is
a leading System Integrator in the country. Subject’s system integration and
services initiatives saw the Company winning and executing projects in a number
of new solutions areas across sectors like telecom, eGovernance, BFSI, power,
airports and health.
Subject has developed matured SI capabilities and practices and has delivered
to its credit some of the most prestigious large SI projects in the country.
HCL has exhibited enterprise in eGovernance vertical with setting up of the
state vide area network at the block level as the backbone infrastructure for
the state government.
Subject has also executed the setting up of operations and command centre for the
country's four major airports. HCL has demonstrated time and again its core
capabilities to execute large scale ICT projects in the fields of defence,
BFSI, power, telecom, Infrastructure, eGovernance and so on.
In order to strengthen its BFSI System Integration Portfolio, the Company this
year acquired a niche Banking Software Product Company. This year, Subject also
bagged an international SI contact from Government of India, where HCL will
implement IT Infrastructure for prestigious Pan-African e-Network project for
tele-education and tele-medicine, also connecting heads-of-the-states of 53
African countries through data, voice and video. With the emergence of digital
lifestyle products as a new market over the last decade, Subject has built India's
largest distribution and retail chain for such products. On a network of 73 HCL
Digilife stores, over 3000 franchisees and more than 100,000 retail outlets in
more than 5000 towns and cities of India, HCL has by far the largest value
added distribution network in India and it has built up partnership with
leading brands such as Apple, Kodak, Toshiba, Nokia, Microsoft, Konica Minolta
among others.
HCL Digilife stores, a unique concept in the country, are a one-stop window for
ICT consumers to experience a comprehensive range of digital lifestyle
products, including Notebooks, PC's, digital cameras, MP3 players, mobile
phones, LCD's, Plasma TV's and related accessories.
This unique concept of HCL Digilife stores has become the most awarded retail
chain in year 2007-08 after winning six prestigious retail awards from renowned
retail industry bodies.
Subject has always had strong internal training systems in place and had
created hardware, software and networking professionals over the years.
Previous year marked Subject's foray in to high-end ICT Education and Training
with the launch of Subject Career Development Centers across India. With an
objective to meet the increasing demand for skilled professionals, Subject CDCs
impart students' real world practical training on enterprise-wide ICT
deployment and integration assignments to transform them into industry-ready
professionals.
Subject has seen a very encouraging response to this initiative and today,
there are Subject CDCs across the country offering specially designed courses
in high-end infrastructure hardware, software, and middleware and networking
integration
COMPUTER SYSTEMS
AND RELATED SERVICES
In terms of total commercial desktop PC shipments, Subject yet again leads the
market for the financial year 2007-08.
Subject also introduced several new models of desktops and notebooks; India's
first notebook with Prism engraved design, notebooks with 250 GB storage.
Subject added a unique technology of 1 GB Turbo memory, in its laptops, which results
in more battery life, quicker boot time and unmatched performance. The Company
also HCL leaptops into unveiled a range of leaptop accessories, like HCL
Leaptop shines, car and USB chargers, Mouse phones, USB TV turners and mobile
printers.
Subject also introduced The HCL WINBee Thin Client that maximizes the
performance and in-turn the organizations profitability while providing utmost
economy. The Thin Client makes it easy for IT administration and technology
migrations, since it is customized to the application it is used for. Its power
consumption is very low. Being as secured and robust as it is, it offers better
management tools for all business computing networks. HCL WINBee Thin Clients
are the pioneers in the Indian Market and have bagged the 'Best Thin Client
Technology Provider' Award from VAR India for 3 consequent years.
Subject has retained its position as a premier provider of 360 degree ICT
solutions to enterprises in India. Keeping with its commitment to bring the
latest in computing technologies from across the world, Subject has tied up
with various partners to deliver state of the art products and total solutions
to its customers.
In January 2008, Subject introduced the next generation, ultra portable, sub
Rs. 14K laptops for the first time in India. The new range of Leaptops are
sleek and light weight, yet offers a full PC functionality with true internet
experience, heralding in a new product category which holds the promise of
being the future of personal mobile computing.
Taking forward its offerings for the market for rack server, Subject introduced
innovative products like The New Data Centre in a box' solution based on latest
Xeon and Quad Core technology. Subject also unveiled its new Quad-SocketHCL
High-End Enterprise server IGL 4700 FC based on Intel's latest 7300 series of
Quad core Xeon MP Processors. The new server packs extreme performance in a
dense package, with 16 computing cores in a mere 7-inch (4U) form factor that
delivers significantly higher performance.
Designing and launching the computing solutions, customised as per the domestic
market requirements, continues to be the Company's strength. Among these
solutions is the launch of Professional Workstation 2008 Series for MCAD and
DCC Professionals. Based on New Intel Platform, Core Micro architecture
Processors and next generation Nvidia Quadro FX370, the new workstation takes
application performance to new levels by featuring industry's first unified
architecture. The workstation is specifically designed and targeted towards
professionals in the field of digital content creation, Mechanical computer
aided design.
Subject products are customised for various user verticals which are being
manufactured and tested specially for Indian conditions. Subject's
multi-technology, multi product offering to customers ensures that they have
the convenience and benefit of sourcing their IT products and solutions from a
single source. Also, HCUs ability to roll out services through its direct
support infrastructure across the country saw it win, support and maintain
large IT contracts. Subject products come with the HCL 'Best-Assured' seal that
assures customers that only new, original and highest quality parts and
components have been used in the manufacturing.
The strengths of the company are Pan India support network, technology
leadership, trusted vendors and customers, differentiation and innovation in
products.
Threat to the Company is Indian market gaining priority focus for Global
Vendors.
TELECOMMUNICATION AND OFFICE AUTOMATION
PRODUCTS
During the year, Subject has further consolidated its position in the
distribution of Nokia Cellular Phones and Digital Lifestyle products. India
will be entering a second phase of growth with the mobile market beginning to
reach into rural India. The mobile market has already grown to be the second
largest in the world in terms of subscribers after China, having overtaken USA
with 261mn subscribers at the end of March 2008. Over the next five years, BMI
forecasts an average annual growth rate of over 30% so that, by the end of
2012, there should be 620mn mobile subscribers in India, representing 51.5%
penetration. 3G licensing is expected in 2008, and there could be as many as
5mn 3G subscribers by the end of 2008, with this figure set to grow to 71.5mn
by the end of 2012, which would mean 11.5% of all mobile subscribers connected
to 3G networks. Another significant growth area in India's telecom market is
the use of WiMAX and it is estimated by that there could be as many as 12mn
users by the end of 2012.
Subject has plans to do aggressive portfolio additions in memory products,
navigation devices and IT accessories. Subject is also looking at getting into
tie-ups with players in the field of Gaming consoles, Alternative Power and
Content and Services.
On the imaging products, Subject has retained its leadership position in sales
of Digital multi-function products and Multimedia projectors. Subject has
consolidated its presence in color and high end MFDs, resulting in a growth of
110%, while achieving 60% growth in business volume for networked MFDs. The
robust growth in print services area has helped the company to progressively
promote 'Print Services' as solutions to various government departments, PSUs
and Multinationals. Subject is now focusing on growing transactional and
security printing areas and has taken steps to address the color graphics
segment.
In the Audio Visual System Integration segment, Subject has significantly
contributed to government education initiatives and also won several deals from
MNC clients as well. Subject is now focusing on creating solutions in allied
areas like e-classroom and high end digital signage solutions. Several new
tie-ups have been firmed up to offer solutions in the transactional and
security printing areas.
Subject with its insatiable desire to provide world class product and services
to every person in the country will continue to expand its Office Automation
(OA) channel strength. Subject anticipates increasing the channel strength by
more than 50% OA products in this fiscal. Subject has enhanced its solutions
offering in specialized segments like homeland security, education and fleet
management. Subject has explored opportunities in the SME market by bundling SIP
based PBX with SIP IP phones to widened its offerings in the telecommunication
domain with IP based Voice and Video conferencing solutions. Subject will also
target hospitality verticals and green field customers for end to end voice and
data solutions. Subject has also established its presence in the area of Media
and Entertainment during this period.
INTERNET AND RELATED SERVICES
The Company's subsidiary, HCL Infinet offers a complete range of network
solutions like Virtual Private Network, Internet, Network Management Services,
Data Centre and Go-location Services and Value Added Services like Internet
Telephony and Enterprise Mailing Solutions. With multi-homing', fully
redundant, carrier agnostic backbone the company has created a reliable network
infrastructure which is trusted by customers for supporting critical
applications.
Looking at the market potential, HCL Infinet has planned manifold increase of
its Pan India POP infrastructure. After expansion, HCL Infinet aims to have
direct presence in over 860 locations in the Network Services market across
India. The first phase of expansion has started covering over 300 business
potential towns of the country. This will help HCL Infinet to arrive at an
average last mile distance and increase its wireless penetration across
India.
QUALITY INITIATIVES
During the year, there have been several initiatives taken by the Company on
the quality front. Subject has scored very well on 'customer satisfaction' in
the annual survey this year with an overall high score in Product Quality,
Support Services, Sales and Marketing and Delivery and Order fulfillment. The
'Loyalty' figure attained in the survey is the highest recorded so far,
indicating preference for repeat purchase by customers to be 'Very likely' for
Subject Products and Support Services.
The Customer Satisfaction initiatives in the year 2007-08 for Subject have been
excellent and eventful. Subject moved up to number 2 position in IT Services
rating of DQ-IDC CSA 2008, scoring highest points in Technical expertise of
service provider as well as Sales and Marketing and Pre-contract Stage.
The company launched the Enterprise Response Centre for providing remote
support services and managed support services; customers now experience quicker
response and resolution to their service requests. It also enabled the Company
to utilise its very highly skilled resources better by consolidating them at
'Centers of Excellence', resulting in improved productivity and accessibility
to customers. The company has received appreciation from many customers for
this new initiative.
On the manufacturing front, the Puducherry Manufacturing Operations and
Uttarakhand Manufacturing Operations have undergone and successfully completed the
Audit for Quality Management Systems (ISO 9001 - 2001) and Environment
Management Systems (EMS 14001-2004).
This year Subject has won the Elcina - Dun and Bradstreet Quality award for the
Product quality and 'Certificate of Merit' for Environment Management.
Subject has achieved ISO 27001:2005 security certification for the HCL Data
Centre located at Noida. Further, the HCL Career Development Centre business
vertical and the Enterprise Software Solutions were ISO 9001:2000 certified
this year.
RISKS AND CONCERNS AND RISK MITIGATION
As part of HCUs risk mitigation policy, the Company has a process of tracking
business risk in all areas of operation. The top management of the Company
takes periodic reviews under the business and environment risk analysis
reporting by the respective business heads.
The growing success of ICT industry is in its ability to evolve and offer new
technology that delivers better efficiency to businesses. At the same time
technology obsolescence is a key risk in ICT industry and therefore strong
inventory control mechanism and road map tracking of all technology vendors are
undertaken by the Company.
With the switching costs at the end of the product life cycles, consumers tend
to evaluate new products in the market. Hence constant innovations and newer
offerings by subject bridge this technology gap. Market trend analysis
indicates shift of consumer preferences in PC market from desktops to laptops,
the Company has taken proactive steps to initiate risk by introducing HCL
Leaptops, now the youngest and fastest growing brand in the country.
On the distribution front subject enjoys an enhanced diversified portfolio of
world class brands, that enjoy the extensive Pan India reach created by the
Company.
With the paradigm shift towards the small form factor PCs, Subject was the
first to introduce its ultra portable range of leaptops called as HCL Mileap.
Attrition is one of the major risks which organisations are facing today. And
also with the increasing demand and limited availability of specialized and
adroit workforce for the ICT domain, identifying, recruiting and retaining this
talent is vital. Subject has strong HR policies that attracts and retain best
of industry talent and also imparts training through knowledge portals to
enhance the skill set of the employees. Subject has implemented ISO 9000
certified processes for recording and archiving of information that ensures
business continuity planning.
SCHEME
OF AMALGAMATION
During the year, a Scheme of Amalgamation u/s. 391/394 of the Companies Act
1956, (the Scheme) for amalgamation of Stelmac Engineering Private Limited
(Stelmac), the wholly owned subsidiary with the Company was approved by the
Hon'ble High Court of Delhi vide its order dated December 07, 2007, which came
into effect from January 30, 2008 from the appointed date i.e. April 1,
2007.
Accordingly, the results of Company on standalone basis for the year ended June
30, 2008 include the results of Stelmac for the 15 month period from April 1, 2007
to June 30, 2008, the impact of which is not material. Please also refer to
'Note 23' on Scheme of Amalgamation given in Notes to Accounts in this
report.
PERFORMANCE
The consolidated net revenue of the Company was Rs.124893.600 millions as against
Rs.117217.900 millions in the previous year. The consolidated profit before tax
was Rs.4301.300 millions as against Rs.4287.100 millions in the previous
year.
The Directors are pleased to recommend final Dividend @100% on the fully
paid-up equity shares of Rs.2/- each for the financial year ended on 301' June,
2008. During the first nine months, three interim (quarterly) dividends of 100%
each were declared taking the total dividend for the year 2007-08 to
400%.
OPERATIONS
A review of operations of the businesses of the Company for the year ended June
30, 2008 is provided in the Management Discussion and Analysis Report forming
part of the Annual Report.
AWARDS AND RECOGNITION
This year the Company's Founder Chairman and CEO, Mr. Ajai Chowdhry was
honoured with Dataquest 'IT Person of the Year 2007' in recognition of over
three decade of his service to the Indian IT industry. He also received the CEO
of the year 2008' award by IT People Awards for excellence in IT.
The year that went by witnessed numerous recognitions for the company. Subject
received three Channels Choice 2007 awards for Relationship Management, After
Sales Support and Commercial Terms from DQ Channels, based on an IDC channel
satisfaction survey. Subject won Brand-of-Excellence Award at VARIndia Forum
2007. Subject bagged IMM Top Organization Award 2007' for Excellence at 34th
World Marketing Congress. Subject also won India's Most Preferred Personal
Computer Brand by CNBC AWAAZ Consumer Awards 2007 and was also awarded 'Amity
Corporate Excellence Award 2007' for its distinct vision, innovation,
competitiveness and sustenance.
Subject bagged several awards and accolades from leading industry players for
its technological innovation and quality of service and delivery across its
range of products and solutions. Subject won global award in 'Innovation
Excellence on Intel Architecture' from Intel Corporation. Subject was awarded
the best iPod distribution partner for Apple for the 2nd year in succession.
Subject has received the Excellence award, as the winner of 'Nokia Formula for
Success' contest in November 2007.
Subject received a number of accolades from the retail industry -Images Retail
Forum 2007- Most Admired Retailer, Var India 2007 - No. 1 Retail Company,
Franchise India 2007 - Best in Specialty Retailing, Asia Retail Congress - 2008
Retailer of Year -Consumer Durable, FAI and Franchisee Plus 2008- Supportive
Franchisor and FAI and Franchisee Plus 2008- Franchisee Innovativeness.
The company was also felicitated by its partners as it won recognition from
Toshiba as its most trusted partner. Subject won 'Toshiba Color Copier Champion
Award 2007' for improving overall customer approach and better technical
capability. Subject also won 'No.1 award in sales and marketing' from Toshiba
Corporation for seventh consecutive year in a row. Subject has been awarded
Ericsson's Premium Partner status for its enterprise products and also Subject
has been awarded the Platinum partner Certification for Video Conferencing Products
from Tandberg. The company also won 'Best Emerging Channel' award for Audio
System Integration from Polycom.
Subject also won awards in 'Environment Management' and 'Quality' categories at
the Elcina-Dun and Bradstreet Awards for Excellence in Electronics,
2006-07.
PARTICULARS
OF SUBSIDIARIES
On the Scheme of Amalgamation for merger of Stelmac Engineering Private Limited
(Stelmac), the wholly owned subsidiary of the Company, becoming effective,
Stelmac has been dissolved without winding up.
A wholly owned subsidiary in the name and style of HCL Security Limited has
been incorporated on March 19, 2008, to pursue the business of providing
security and surveillance solutions. Subject Security will close its first
financial year on June 30, 2009.
On acquisition of the entire share capital of Natural Technologies Private
Limited (NTPL), a company engaged in the business of banking software
solutions, NTPL has become a wholly owned subsidiary of the Company with effect
from May 5, 2008. A Scheme of Amalgamation for merging NTPL with the Company
has been filed with the Hon'ble High Courts of Delhi and Rajasthan.
The Company has obtained permission from Ministry of Corporate Affairs,
Government of India vide their letters of even number 47/112/2008-CL-III, dated
26.03.2008 and 17.07.2008 for not annexing the accounts of the wholly owned
subsidiaries, namely HCL Infinet Limited and NTPL, respectively.
The detailed annual accounts of the subsidiaries of the Company are available
on any working day at the Registered Office of the Company to the shareholders
of the Company requiring such information.
CONTINGENT
LIABILITIES
·
Claims not acknowledged as debts
|
|
(As on
30.06.2008) Rs. in Millions |
|
Sales Tax* |
86.400 |
|
Excise* |
148.700 |
|
Income Tax* |
5.400 |
|
Industrial Disputes, Civil Suits and Consumer Disputes |
83.700 |
* Includes sum of
Rs.28.800 millions (2007 -Rs.41.800 millions) deposited by the Company against
the above.
·
Corporate Guarantee of Rs.65.000 millions (2007-Rs. Nil) was given to a
Bank for working capital facilities sanctioned to 100% subsidiary, HCL Infinet
Limited (Formerly Microcomp Limited) against which the total amount utilised as
at June 30, 2008 is Rs.22.500 millions (2007- Rs. Nil).
·
The Company has transferred Financial Assets (Lease Rental Recoverable)
to a bank under a financing arrangement for which the balance outstanding with
the bank as on June 30, 2008 is Rs.305.500 millions (2007 - Rs.396.400 millions).
The transfer of these Financial Assets is with recourse to the Company.
FIXED ASSETS
·
Land – Leasehold
·
Land – Freehold
·
Buildings
·
Plant and Machinery
·
Air Conditioners
·
Furniture and Fixtures
·
Office equipment
·
Vehicles
AS PER WEBSITE
DETAILS
HISTORY
Subject
is one of the pioneers in the Indian IT market , with its origins in 1976. For
over quarter of a century, they have developed and implemented solutions for
multiple market segments, across a range of technologies in India. They have
been in the forefront in introducing new technologies and solutions. The
highlights of the subject saga are summarised below:
|
Y E A R |
H I G H L I G H T S |
|
1976 |
Foundation of the Company laid - Introduces microcomputer-based programmable calculators with wide
acceptance in the scientific / education community |
|
1977 |
- Launch of the first
microcomputer-based commercial computer with a ROM -based Basic interpreter |
|
1978 |
- Initiation of application development in diverse segments such as
textiles, sugar, paper, cement , transport |
|
1980 |
- Formation of Far East Computers Ltd., a pioneer in the Singapore IT
market, for SI (System Integration) solutions |
|
1981 |
- Software Export Division formed at Chennai to support the bespoke
application development needs of Singapore |
|
1983 |
- Subject launches an aggressive advertisement campaign with the theme
' even a typist can operate' to make the usage of computers popular in the
SME (Small and Medium Enterprises) segment. This proposition involved
menu-based applications for the first time, to increase ease of operations.
The response to the advertisement was phenomenal.
|
|
1985 |
- Bank trade unions allow computerisation in banks . However , a computer
can only run one application such as
Savings Bank, Current account , Loans etc.
|
|
1986 |
- Zonal offices of banks
and general insurance companies adopt computerization |
|
1991 |
- Subject enters into a joint venture with Hewlett Packard
|
|
1994 |
- Subject acquires and executes the first offshore project from IBM
Thailand
|
|
1995 |
- Starts execution of Information System Planning projects
|
|
1996 |
- Sets up the STP (
Software Technology Park ) at Chennai to execute software projects for
international customers |
|
1997 |
- Kolkata and Noida STPs set up
|
|
1998 |
- Chennai and Coimbatore
development facilities get ISO 9001 certification |
|
1999 |
- Acquires and sets up
fully owned subsidiaries in USA and UK |
|
2000 |
- Sets up fully owned subsidiary in Australia
|
|
2001 |
-Launched Pentium IV PCs at below Rs 0.040 million
|
|
2002 |
-Declared as Top PC Vendor by Dataquest
|
|
2003 |
- Became the first vendor
to register sales of 50,000 PCs in a quarter |
|
2004 |
- 1st to announce PC price cut in India, post duty reduction, offers
Ezeebee at Rs.0.018 million
|
|
2005 |
- Launch of Subject PC
for India, a fully functional PC priced at Rs.9,990/- |
|
2006 |
- 75, 000+ machines
produced in a single month - Subject completes 30
years in India |
|
2007 |
- Subject introduces eco-efficient Notebook PCs
complying with RoHS directive |
|
2008 |
- Subject unveils the
future of personal computing. Launches next generation, ultra portable, Sub
Rs.0.014 million laptops MiLeap Series for the first time in India |
Alliances and Partnerships
To
provide world-class solutions and services to all the customers, they have formed
Alliances and Partnerships with leading IT companies worldwide.
Subject
has alliances with global technology leaders like Intel, AMD, Microsoft, Bull,
Toshiba, Nokia, Sun Microsystems, Ericsson, NVIDIA, SAP, Scansoft, SCO, EMC,
Veritas, Citrix, CISCO, Oracle, Computer Associates, RedHat, Infocus, Duplo,
Samsung and Novell.
These
alliances on one hand give us access to best technology and products as well
enhancing the understanding of the latest in technology. On the other hand they
enhance the product portfolio, and enable them to be one stop shop for the
customers.
PRESS RELEASE
HCL introduces Leaptops Designed for India
Launches HCL “Leaptop Series 39” with thermals designed for India
HCL “Leaptop Series 39” with excellent thermals, Energy Star 4.0
compliance and imprint designs customized for Indian consumers
Foreseeing
the rapid penetration and growth of the domestic laptop market, HCL Infosystems
Limited India's premier information enabling and leading ICT System Integration
company today launched the HCL “Leaptop Series 39” here at Bangalore today.
Designed for Indian conditions, where the ambient temperatures are higher and
the surface temperature of laptops tend to become uncomfortable, the HCL
Leaptop Series 39 is designed to achieve a lower temperature differential of
below 6 degrees Centigrade on its palm rest surfaces.
Developed
under its “Design for India” program, HCL brings three decades of experience in
designing computing products for India, into the design of its Leaptop range of
products. With excellent thermals and meeting the Energy star 4.0 compliance
standard, the product starts at a price range of Rs.0.040 million. The HCL
Leaptop Series 39 is based on Intel’s Centrino and Centrino2 Processor
technology and comes in both Microsoft and Linux versions. On this occasion HCL
also showcased its range of Leaptops, the Z35 series, the series 28 and 24 and
its latest “MTV Edition”. Also showcased was India’s first Ultraportable range
the “HCL MiLeap series” and a range of HCL accessories including the
“Dictamail” and the “FM Companion”.
Commenting
at the launch, Mr. George Paul, Executive Vice President, HCL
Infosystems said “Over the past three decades, with our understanding
and expertise of the Indian market, HCL has always been at the forefront of
bringing in technological innovation in the country. We are committed to bring,
cutting edge technology products designed for Indian conditions and have
brought in a range of new categories that have transformed the computing
industry in India. The launch of HCL Leaptop Series 39 is yet another step
towards the ‘Design for India’ products strategy”
Addressing
the launch, Mr. Rajendra Kumar, Executive Vice President, HCL Infosystems
said “With the trend of computing devices moving towards notebooks we realized
that there is a need for notebooks that are designed to meet the varied
requirements and mode of usage of the Indian market. Among the various factors,
one of the key parameters in the Indian context is the thermals and the
temperature difference between the left and right palm rest surfaces of the
notebook.
With
re-engineering of the key components of a computing device into the much
smaller form factor of today’s modern day notebooks, leads to concentration of
heat generation. Therefore, at our HCL Labs and the HCL product engineering
center we are focused at designing a product with lower temperature difference
across the surface of the laptop. Today it gives us immense pleasure to
announce the launch of the Leaptop 39 series that have thermals that are within
6 deg Centigrade and can proudly attribute it as a product that is Distinctly
Indian.”
The
HCL Leaptop 39 series comes with a 14.1 inch wide screen and is powered by
Intel’s Centrino and Centrino2 processor technology and has a battery backup of
more than 4 hours. Compliant to the Energy Star 4.0 Category A certification,
the HCL Leaptop Series 39 consumes less than 1.7W of energy in sleep mode and
below 1W in stand-by mode and is optimized to reduce its power consumption.
Further
these products are tested for special Indian conditions and undergo rigorous
tests such as the HCL five feet drop test and the multiple environment stress
tests, which test these laptops under extensive heat, humidity and voltage
stress conditions. We are also proud to state that the complete range of HCL
Leaptops including the Series 39 are fully RoHS compliant.
The
HCL Leaptop series 39 is available in both Windows and Linux OS flavours and
has IMR Imprint design finish adding glamour to its beauty.
Starting
at a price range of Rs0.040 million for the Centrino Model and Rs0.043 million
for the Centrino2 range, the HCL Leaptop Series 39 is a powerful workhorse
designed for India and backed by HCL’s award winning Support Services. HCL
extends a round the clock 24X7X365 Telephonic Support line to its consumer
users.
The new HCL Series 39 range of Leaptops will be available nationwide at all HCL
DigiLife stores, premium Large Format Retail and other HCL retail outlets.
RAMAKRISHNA MISSION JOIN HANDS WITH HCL TO CREATE INDUSTRY READY ICT
PROFESSIONALS
- HCL Career Development Centre in association with Ramakrishna Mission
to offer courses in Infrastructure, Middleware and Networking –
HCL
Infosystems Limited, India’s premier information enabler and country’s leading
ICT system integrator and Distribution Company, joined hands with Rama Krishna
Mission a well known charitable institution, to inaugurate a branch of HCL
Career Development Centre (HCL CDC) in Delhi. Under this initiative students
will gain from deep domain expertise of HCL CDC apart from getting affordable
IT training program offered by Ramakrishna Mission. Mr. L N Jhunjhunwala -
Chairman (Emeritus), LNJ Bhilwara Group inaugurated the centre in Delhi today.
Keeping
in view the reach Ramakrishna Mission has to empower underprivileged; as a part
of its CSR initiative HCL has facilitated the existing computer training centre
at Ramakrishna Mission through its Career Development Centre to provide
affordable world class computer education to the underprivileged. Under this
initiative to improve and inspire the lives of today’s youth by providing ICT
education, HCL CDC will provide students with course material, practical
classes, hands on training, communications skills and guest lectures
facilities. HCL and Ramakrishna mission will provide affordable training
courses, so that poor and students from low income groups, who have passed
Senior Secondary Examination can also take advantage of the facilities
available in the Fully Air Conditioned Computer Training Centre to earn their
livelihood.
The
HCL CDC provides specially designed courses to groom students into
industry-ready professionals. The company already has 70 fully operational HCL
CDCs across the country and plans to expand its footprint to meet the growing
demand of skilled ICT professionals.
On
the occasion Mr. Rajendra Kumar, Executive Vice President, HCL Infosystems
Limited said, “We are pleased to join hands with Ramakrishna Mission for this
unique initiative and empower the underprivileged with the power of IT . The IT
boom in India has caused a severe shortage of high-skilled ICT engineers. With
HCL CDCs, we hope to play a leadership role in enlarging the talent pool available
to organizations deploying IT in India. The HCL CDCs across India have received
tremendous response from students eager to make a rewarding career in the IT
industry.”
In
the world of high-end cutting-edge technologies that we live in today, the
students do not have the capabilities on leading edge technologies, which is so
very critical to build the ICT infrastructure in the country.
This
centre of HCL CDC at Ramakrishna Mission will also provide courses in C, C++,
.Net and Java apart from its regular academic curriculum in Infrastructure,
Middleware and Networking. HCL CDCs also provide for placement support to all
their students who excel in their academics and display a remarkable
performance during the course.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or investigation
registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
The market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
The Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.12 |
|
UK Pound |
1 |
Rs.72.59 |
|
Euro |
1 |
Rs.63.52 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|