-128751%2008-Jan-2011_files/image002.jpg){kind=small}
MIRA
INFORM REPORT
|
Report Date : |
08.01.2011 |
IDENTIFICATION DETAILS
|
Name : |
HCL TECHNOLOGIES LIMITED DSL SOFTWARE LIMITED (MERGED WITH HCL TECHNOLOGIES LIMITED) |
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|
|
|
Registered Office : |
806, Siddharth 96, |
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Country : |
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|
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Financials (as on) : |
30.06.2010 |
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|
|
|
Date of Incorporation : |
12.11.1991 |
|
|
|
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Com. Reg. No.: |
55-46369 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L74140DL1991PLC046369 |
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|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
DELH01586E |
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|
|
|
Legal Form : |
Public Limited Liability Company. The company’s shares are listed on
the Stock Exchanges |
|
|
|
|
Line of Business : |
Subject is engaged in providing a range of software services, business
process outsourcing and infrastructure services |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (72) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 200000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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|
Comments : |
Subject is a well established and a reputed company having fine track.
Financial position of the company appears to be sound. Fundamentals are strong
and healthy. Trade relations are reported as fair. Business is active.
Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. The correct name of the company is DSL Software Limited which is
merged with HCL Technologies Limited. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INFORMATION DECLINED BY
Management Non Co- Operative
LOCATIONS
|
Registered Office : |
806, Siddharth 96, |
|
E-Mail : |
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Website : |
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Centers Locations: |
Located At: ·
Chennai ·
Mumbai ·
Gurgaon ·
Kolkata ·
Noida ·
|
DIRECTORS
AS ON 31.03.2010
|
Name : |
Mr. Shiv Nadar |
|
Designation : |
Chairman and Chief Strategy Officer |
|
|
|
|
Name : |
Mr. Vineet Nayar |
|
Designation : |
Chief Executive Officer and Whole-time Director |
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|
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|
Name : |
Mr. T S R Subramanian |
|
Designation : |
Non Executive Director |
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|
|
|
Name : |
Ms. Robin Abrams |
|
Designation : |
Non Executive Director |
|
|
|
|
Name : |
Mr. Ajai Chowdhry |
|
Designation : |
Non Executive Director |
|
|
|
|
Name : |
Mr. Subroto Bhattacharya |
|
Designation : |
Non Executive Director |
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|
|
|
Name : |
Mr. Amal Ganguli |
|
Designation : |
Non Executive Director |
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|
|
|
Name : |
Mr. P C Sen |
|
Designation : |
Non Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. Anil Chanana |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. Sandip Gupta |
|
Designation : |
Corporate Vice President - Finance |
|
|
|
|
Name : |
Mr. Ranjit Narasimhan |
|
Designation : |
President and CEO-BPO Division |
|
|
|
|
Name : |
Mr. Prahlad Rai Bansal |
|
Designation : |
Corporate Vice President – Finance |
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|
|
Name : |
Mr. Manish Anand |
|
Designation : |
Deputy Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2010
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
323,082,542 |
47.51 |
|
|
719 |
- |
|
|
394 |
- |
|
|
325 |
- |
|
|
323,083,261 |
47.51 |
|
|
|
|
|
|
120,259,208 |
17.69 |
|
|
120,259,208 |
17.69 |
|
Total shareholding of Promoter and Promoter Group (A) |
443,342,469 |
65.20 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
22,849,123 |
3.36 |
|
|
466,921 |
0.07 |
|
|
15,571,403 |
2.29 |
|
|
142,602,269 |
20.97 |
|
|
1,244 |
- |
|
|
1,244 |
- |
|
|
181,490,960 |
26.69 |
|
|
|
|
|
|
22,394,326 |
3.29 |
|
|
|
|
|
|
17,558,230 |
2.58 |
|
|
3,103,473 |
0.46 |
|
|
12,109,134 |
1.78 |
|
|
97,028 |
0.01 |
|
|
76,436 |
0.01 |
|
|
2,112,570 |
0.31 |
|
|
8,825,238 |
1.30 |
|
|
829,083 |
0.12 |
|
|
168,779 |
0.02 |
|
|
55,165,163 |
8.11 |
|
Total Public shareholding (B) |
236,656,123 |
34.80 |
|
Total (A)+(B) |
679,998,592 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
Total (A)+(B)+(C) |
679,998,592 |
100.00 |
-128751%2008-Jan-2011_files/image004.gif){kind=small}
(1) Indian-128751%2008-Jan-2011_files/image005.gif){kind=small}
Bodies Corporate-128751%2008-Jan-2011_files/image006.gif){kind=small}
Directors/Promoters & their Relatives
& FriendsBUSINESS DETAILS
|
Line of Business : |
Subject is engaged in providing a range of software services, business
process outsourcing and infrastructure services |
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Products : |
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GENERAL INFORMATION
|
No. of
Employees : |
Information declined by the management |
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Bankers : |
v
Citi Bank, N.A. Global Corporate and Investment Banking, DLF Centre, 5th
Floor, v Deutsche Bank AG Corporate Office - v Standard Chartered Bank Corporate and Institutional Banking, Credit Operations, v ICICI Bank Limited v HDFC Bank Limited B-6/3, Safdarjung Enclave, DDA Commercial Complex,
Opposite v
State Bank of Corporate Accounts Group Branch, 11th / 12th Floor, Jawahar Vyapar Bhawan 1, Tolstoy Marg, New Delhi -110001, India v Canara Bank C-3, Sector-1, Noida – 122001, |
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Facilities : |
Notes:
Debenture –
Series
Maturity Date 7.55% Redeemable
non convertible debentures
August 25,2011 8.20% Redeemable
non convertible debentures
August 25,2012 8.80% Redeemable
non convertible debentures
September 10,2014 2. Rs.Nil
millions (Previous Year: Rs 969.400 millions) secured by fixed deposits
pledged with banks of Rs. Nil millions (Previous Year: Rs 5869.500 millions) 3. Obligation under finance lease are secured by fixed assets taken on
lease.
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Banking
Relations : |
- |
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Auditors : |
|
|
Name : |
Price Water House Chartered Accountant |
|
Address : |
Gurgaon – 122016, |
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Subsidiaries : |
·
HCL America Inc., ·
HCL Great Britain Limited, ·
HCL ( ·
HCL ·
HCL ·
HCL ·
HCL Australia Services Pty. Limited, ·
HCL ( ·
HCL Hong Kong SAR Limited, ·
HCL Comnet Systems and Services Limited, ·
HCL Comnet Limited, ·
HCL Bermuda Limited, ·
HCL Technologies ( ·
HCL BPO Services (NI) Limited, ·
HCL ·
HCL ( ·
HCL EAI Services Limited, ·
HCL Technoparks Limited, ·
HCL ·
Capital Stream Inc., ·
HCL Axon (Pty) Limited ·
Axon Solutions Inc. , ·
Axon Solutions Limited, U K ·
Axon Solutions Singapore Pte Limited ·
Axon Solutions Sdn. ·
HCL Insurance BPO Services Limited, U K ·
Axon Solutions ( ·
HCL Technologies Canada Inc. ·
Axon Group PLC ·
HCL ·
HCL EAS Limited, U K |
|
|
|
|
Jointly Controlled Entities : |
v
NEC HCL System Technologies Limited, |
|
|
|
|
Others (Significant Influence) : |
v HCL Corporation Limited* v HCL Infosystems Limited v HCL Peripherals Limited v HCL Security Limited v HCL Infinet Limited *HCL Corporation ceases to be holding company from 24 June, 2010. As
on June 30, 2010 HCL Corporation held 323,082,542 shares in the Company being
47.6% holding in HCL Technologies Limited |
CAPITAL STRUCTURE
As on 30.06.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
750000000 |
Equity Shares |
Rs. 2/- each |
Rs.1500.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
678783812 |
Equity Shares |
Rs. 2/- each |
Rs.1357.600
millions |
Notes:
Paid up share capital includes:
• 42,449,979 (Previous
year 42,449,979) equity shares of Rs. 2 each allotted as fully paid up,
pursuant to contracts for consideration other than cash.
• 82,986,872
(Previous year 82,986,872) equity shares of Rs. 2 each issued as bonus shares
in the ratio of one share for every two held by capitalisation of general
reserve and 325,453,918 (Previous year 325,453,918) equity shares of Rs. 2 each
issued as bonus shares in the ratio of one share for every share held by
capitalisation of securities premium account.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.06.2010 |
30.06.2009 |
30.06.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
1357.600 |
1340.500 |
1332.700 |
|
|
2] Share Application Money |
20.100 |
4.700 |
17.100 |
|
|
3] Reserves & Surplus |
47980.900 |
33537.200 |
30798.500 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
49358.600 |
34882.400 |
32148.300 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
10305.100 |
1238.100 |
252.400 |
|
|
2] Unsecured Loans |
3668.800 |
3899.200 |
0.900 |
|
|
TOTAL BORROWING |
13973.900 |
5137.300 |
253.300 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
63332.500 |
40019.700 |
32401.600 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
9438.300 |
8569.800 |
7252.900 |
|
|
Capital work-in-progress |
4772.000 |
4175.600 |
4190.300 |
|
|
|
|
|
|
|
|
INVESTMENT |
22332.000 |
5627.500 |
17973.400 |
|
|
DEFERREX TAX ASSETS |
1061.600 |
2260.000 |
1406.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
120.400
|
870.100
|
0.000 |
|
|
Sundry Debtors |
20847.000
|
14892.600
|
9800.200 |
|
|
Cash & Bank Balances |
9894.300
|
13658.300
|
6868.800 |
|
|
Other Current Assets |
4080.300
|
3232.400
|
2308.100 |
|
|
Loans & Advances |
12347.400
|
12672.800
|
5221.900 |
|
Total
Current Assets |
47289.400
|
45326.200
|
24199.000 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
6456.000
|
8047.500 |
|
|
|
Other Current Liabilities |
10768.800
|
14112.400
|
22620.000 |
|
|
Provisions |
4336.00
|
3779.500
|
0.000 |
|
Total
Current Liabilities |
21560.800
|
25939.400
|
22620.000 |
|
|
Net Current Assets |
25728.600
|
19386.800
|
1579.000 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
63332.500 |
40019.700 |
32401.600 |
|
-128751%2008-Jan-2011_files/image007.gif){kind=small}
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.06.2010 |
30.06.2009 |
30.06.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
50787.600 |
46750.900 |
46153.900 |
|
|
|
Other Income |
1717.700 |
2658.100 |
1704.000 |
|
|
|
TOTAL (A) |
52505.300 |
49409.000 |
47857.900 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of goods sold |
854.700 |
0.000 |
|
|
|
|
Personnel expenses |
21876.600 |
19302.200 |
3673.600 |
|
|
|
Operating and other expenses |
14491.900 |
15390.000 |
|
|
|
|
TOTAL (B) |
37223.200 |
34692.200 |
3673.600 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
15282.100 |
14716.800 |
11121.900 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1013.600 |
280.900 |
190.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
14268.500 |
14435.900 |
10931.200 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
2740.300 |
2518.900 |
2178.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
11528.200 |
11917.000 |
8752.500 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
962.400 |
1943.900 |
946.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
10565.800 |
9973.100 |
7806.500 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
19209.700 |
15727.300 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed final dividend |
681.600 |
679.000 |
|
|
|
|
Corporate dividend tax on proposed final dividend |
113.200 |
115.400 |
|
|
|
|
Interim Dividend |
2023.300 |
4017.100 |
|
|
|
|
Corporate dividend tax on interim dividend |
341.300 |
681.900 |
NA |
|
|
|
Transfer to general reserve |
1056.600 |
997.300 |
|
|
|
|
Transfer to debenture redemption reserve |
2950.000 |
0.000 |
|
|
|
BALANCE CARRIED
TO THE B/S |
22609.500 |
19209.700 |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
49682.400 |
45725.300 |
NA |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
1149.100 |
1080.300 |
677.800 |
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
(Rs.) |
|
|
|
|
|
|
- Basic |
15.68 |
14.91 |
11.75 |
|
|
|
- Diluted |
15.33 |
14.73 |
11.40 |
|
-128751%2008-Jan-2011_files/image008.gif){kind=small}
-128751%2008-Jan-2011_files/image009.gif){kind=small}
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.09.2010 (1st
Quarter) |
|
Net Sales |
|
|
14983.200 |
|
Total Expenditure |
|
|
12200.000 |
|
PBIDT (Excl OI) |
|
|
2783.200 |
|
Other Income |
|
|
420.200 |
|
Operating Profit |
|
|
3203.400 |
|
Interest |
|
|
262.900 |
|
Exceptional Items |
|
|
0.000 |
|
PBDT |
|
|
2940.500 |
|
Depreciation |
|
|
734.300 |
|
Profit Before Tax |
|
|
2206.200 |
|
Tax |
|
|
257.400 |
|
Provisions and contingencies |
|
|
0.000 |
|
Profit After Tax |
|
|
1948.800 |
|
Extraordinary Items |
|
|
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
|
Other Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
1948.800 |
KEY RATIOS
|
PARTICULARS |
|
30.06.2010 |
30.06.2009 |
30.06.2008 |
|
PAT / Total Income |
(%) |
20.12
|
20.18
|
16.31 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
22.70
|
25.59
|
18.96 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
20.32
|
22.11
|
15.91 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.23
|
0.34
|
0.27 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.72
|
0.74
|
0.70 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.19
|
1.75
|
1.07 |
LOCAL AGENCY FURTHER INFORMATION
Details of Sundry Creditors:
|
Particulars |
30.06.2010 (Rs. in millions) |
30.06.2009 (Rs. in millions) |
30.06.2008 (Rs. in millions) |
|
Sundry Creditors |
6456.000
|
8047.500 |
NA |
Company Overview
Subject is
primarily engaged in providing a range of software services, business process outsourcing
and infrastructure services. The Company was incorporated in
FINANCIAL RESULTS:
During the year, a
scheme of amalgamation under sections 391 to 394 of the companies act, 1956 for
amalgamation of DSL Software Limited, Shipara Technologies Limited, HCL
Technologies BPO Services Limited, HCL Technologies (Mumbai) Limited, Aquila
Technologies Limited and HCL Enterprise Solutions (India) Limited, all wholly
owned subsidiaries of the company (Transformer Companies) with the company was
approved by the Honb’le High Courts of Delhi and Karnataka. The effective date
amalgamation is April 1, 2005.
MANAGEMENT'S
DISCUSSION AND ANALYSIS
Investors are
cautioned that this discussion contains forward looking statements that involve
risks and uncertainties. When words like ‘anticipate’, ‘believe’, ‘estimate’,
‘intend’, ‘will’, and ‘expect’ and other similar expressions are used in this
discussion, they relate to the Company or its business and are intended to
identify such forward-looking statements. The Company undertakes no obligations
to publicly update or revise any forward-looking statements, whether as a
result of new information, future events, or otherwise. Actual results,
performances or achievements could differ materially from those expressed or
implied in such statements. Factors that
could cause or contribute to such differences include those described
under the heading ‘Risk Factors’ in the Prospectus filed with the Securities
and Exchange Board of India (SEBI) as well as factors discussed elsewhere in
this report. Readers are cautioned as not to place undue reliance on the
forward looking statements as they speak only as of their dates. The following
discussion and analysis should be read in conjunction with the Company’s
financial statements included herein and the notes thereto.
Industry Overview
Indian IT Industry
has witnessed a decade of growth. Indian IT exports have grown from $4bn in
FY2000 to $50bn in FY2010 at a 10-year CAGR of 28.8%. During the first half of
the decade, Indian IT exports grew at a 5-year CAGR of 35% from $4bn in FY2000
to $18bn in FY2005. During the second half of the decade, Indian IT exports
grew at a 5-year CAGR of 23% from $18bn in FY2005 to $50bn in FY2010.
The industry can
be segmented as per the (a) Verticals (b) Service Lines (c) Geographies.
BFSI,
Hi-tech/Telecom, and Manufacturing were the dominant verticals contributing to
over 3/4th of the exports over past several years. BFSI contributed to 40% of
Indian IT Exports during FY10. Hitech/Telecom and Manufacturing contributed 20%
and 16% respectively. Emerging verticals (Media and Entertainment, Retail,
Healthcare, Utilities, and Transportation) have contributed to nearly 1/4th of
the exports.
IT Services
contributed to 55% of the IT Exports during FY10. BPO and Engineering Services
contributed 25% and 20% respectively. This share distribution has remained
somewhat constant over past several years.
Within IT
Services, the share of Custom Application Development Services came down from
49% to 37% during the 3-year period, whereas the share of Remote Infrastructure
Management and System Integration services increased from 11% to 20%.
Application Management Services grew much faster than Application development
services at a 3-year CAGR of 24%. Other IT Services (such as IT Consulting,
Support and Training, Software Testing, SOA/Web Services etc.) grew at a 3-year
CAGR of 17%.
US and
HCL has grown
faster than Indian IT Industry during the last decade. While HCL growth was
lagging behind Indian IT Industry growth during the first half of the decade,
HCL came back strongly during the second half of the decade. During the first
half of the decade, HCL revenues grew at a 5-year CAGR of 30% from $207mn in
FY2000 to $764mn in FY2005. During the second half of the decade, HCL revenues
grew at a 5-year CAGR of 29% from $764mn in FY2005 to $2705mn in FY2010. Overall, HCL revenues grew at a 10-year CAGR
of 29.3%.
Drivers for Future
Growth
While Indian IT exports
grew at a 10-yr CAGR of 29% during the last decade, Global IT services spending
grew at a 10-yr CAGR in lower single digits during the same period. This is a
story of ‘market-share gains’ or ‘replacement revenue’. At the start of the
last decade, in the year 2000, Top Indian 5 IT players Market Share in the
Global IT Services spending was just about 0.1%. By the end of the decade, in
the year 2009, their Market share increased to about 2.4%. There is still big
headroom for growth for Indian IT Industry.
According to a
customer satisfaction (CSAT) survey of HCL customers in 2009, cost reduction
was considered to be the most important business priority across all the
verticals and geographies. With continued cost pressures across the businesses
and India’s still attractive 30-40% cost advantage, the next level of
replacement revenue is about to begin. Growth opportunities for HCL can come
from existing customers as well as new customers. From existing customers,
opportunities are in cross-sell, up-sell, and new propositions such as
business-aligned IT, cloud computing, platform-based BPO, and green IT. HCL’s
ability to grow customer relationships particular into large accounts – will be critical for the
company’s growth in the coming years.
Growth opportunities
from new customers can come from Vendor consolidation, New Verticals, New
Geographies, and New Propositions. Vendor consolidation means reducing the
number of vendor engagements to an efficient “core” capable of providing all
needed services, software, systems, and partnering relationships. It offers the
following business benefits to customers: reduced total cost of ownership
(TCO), streamlined vendor relationship management, reduced number of support
contracts to negotiate and manage, increased procurement process leverage, and
reduced training, certification, and administration expenses. The trend of
vendor consolidation will contribute significantly to greater offshore content
in global IT services.
For growth
opportunities from new customers, the NASSCOMMcKinsey 2020 report provides
useful inputs. Published in April 2009, the NASSCOM-McKinsey 2020 report is the
third report published by NASSCOM and McKinsey on the future of IT Industry.
The report discusses seven Global Megatrends that will drive the increase in
global sourcing and domestic outsourcing addressable market opportunity from
$500 bn to $1.5 trn by 2020.
The
NASSCOM-Mckinsey 2020 report examines the total addressable global sourcing
market along four dimensions:
1. Core Market Opportunities:
The total addressable market for core markets (large enterprises in developed
countries in verticals such as telecom, banking, insurance, and manufacturing)
was $500 bn in 2008. It is expected to reach $700 bn by 2020.
2. New Verticals:
Over the next 12 years, several emerging verticals will become the next major
segments after the core verticals. The four emerging verticals are: Public
sector and defense, Healthcare Providers, Utilities, and Media. The addressable
market for these emerging verticals is expected to reach $190 bn by 2020.
3. New
Geographies: BRIC countries will offer a domestic outsourcing market of $380 bn
by 2020.
4. New Customer
segments: The global sourcing addressable market for SMBs in core geographies
is likely to be around $230 bn in 2020.
While core markets
will present an additional $200 bn addressable market by 2020, new verticals
and new geographies will present a $580 bn addressable market by 2020—three
times the additional opportunity presented by core verticals.
When looking at
the growth opportunities, another dimension to explore is that of new
propositions such as cloud computing, virtualization, platform-based BPO, green
IT, digital technology and marketing, industry-specific smart Solutions, and
advanced business analytics. Of all these propositions, Cloud computing is
being touted as the most disruptive proposition that has the potential to
change the way IT services are delivered. The key reason for that are the
trends of the Industralization and Consumerization of IT.
Industralization
of IT refers to the standardization of IT services and covers predesigned and
preconfigured solutions that will be highly automated, effi cient, repeatable,
scalable, reliable, and available. Consumerization of IT refers the changing
buyer behavior in IT. Buying centers will shift from IT to business. Buyers
will buy services instead of skills – Infrastructure as a Service, Application
as a Service, Platform as a Service, or even Business as a service. The key
driver for the Consumerization of IT is the movement towards decreased IT hardware/software assets. Virtualization is
making underlying hardware (and its ownership) non-strategic. Buyers are
looking for scalability, pay-as-you-go, and freedom from infrastructure build-out
and less capex sensitivity.
Industry Outlook
The first decade
of the 21st Century was somewhat unique. It saw everything from highly volatile
Oil prices, increasingly rising commodity prices, bulls and bears of stock markets,
focus/defocus on climate change, and debates/concerns about scarcity of natural
resources. It started with a recession and it is ending with a recession. But,
there is big difference between the two. While the previous recession was led
by the slowdown in business spending, the current recession is led by the
slowdown in both business and consumer spending. Consumer confidence has
completely shaken due to increasing job losses, salary freeze/cuts, and memory
of loan foreclosures. Consumers are taking precautionary approach to spending
and reducing their debt levels. They are spending on what they need rather than
what they want. Banks have started adopting tighter credit and stricter lending
standards towards consumers, as they side-step Risk with ‘Be Prepared’ approach
instead of a ‘Just do it’ approach. All this is leading to the phenomenon of
‘New Normal’.
The ‘New Normal’
means they will be living in a world of moderated business growth during next
few years. The businesses across the world won’t be growing at the same pace as
they were growing from 2005-08. The customers will be demanding more for less.
They will look for business benefits than IT benefits. They would want vendors to put skin in the
game and co-invest in the transformation initiatives.
Indian IT Industry
will also witness lesser growth rates in the next decade than in the last
decade. As per NASSCOM Mckinsey 2020 report, the total global sourcing industry
will grow at a CAGR of 15% from 2008 until 2020. It is likely to expand more
than fi ve-fold by 2020 from $80 bn in revenues in 2008 to $450 bn by 2020
(based on a penetration of 40% of the total addressable market of $ 1.1 trn).
The Indian global sourcing industry will grow at a slightly lower CAGR of 13%
and is likely to expand four-fold by 2020 from $40 bn in revenues in 2008 to
$175 bn by 2020. This will imply a decline in
Company Overview
About HCL
Technologies Limited
HCL is a global
technology enterprise and a name to reckon with in the industry. The passion of
its founder and the entrepreneurial zeal of its employees have made its
software services arm, HCL Technologies, a leading provider of business
transformation, enterprise and custom applications, infrastructure management,
business process outsourcing, and engineering services. HCL delivers solutions
across a wide range of verticals like financial services, manufacturing,
consumer services, public services and healthcare. Its global delivery model is
spread across 26 countries around the globe and its empowered ‘transformers’
are busy working with over 500 forward looking customers, seeking to shift
paradigms and transform the way business is being done.
Change has been
the winning formula at HCL. The ability to transform businesses across the
world comes from the organization’s own readiness to transform itself in its
relentless drive to better serve its customers. In 2005, HCL commenced on its
transformation journey based on the foundation of ‘Employees First’. Today,
this unique management philosophy has been recognized and praised worldwide for
empowering employees to become the drivers of growth. And this in turn has led
to extraordinary growth in the past 5 years, where HCL experienced:
• Tripling of
revenue and operating profit
• Twenty percent
year-on-year growth in market share
• Seventy percent
of deals being won against the Big Four international IT companies
• Fivefold
increase in the number of large ($20mn+) customers
• Nearly fifty
percent decline in employee attrition rates
• Seventy percent
increase in employee satisfaction scores
The phenomenal
performance has won its share of approval. Today, HCL is proud to be on
Business Week’s 5 most influential companies to ‘watch’ list; considered
‘disruptive’ by IDC; ranked in the top 10 outsourcers with the ‘highest
accountability, transparency and trust’ by Wall Street Journal; ranked #1
employer of 2009 in a study done by Hewitt; #1 among the top 50 best managed
global outsourcing vendors of 2009 by Brown and Wilson’s Black Book of
Outsourcing; listed as one of the 44 Most Democratic Workplaces in the world by
WorldBlu and featured as a case study in Harvard, London Business School,
Darden Business Publishing, and more recently, David G Thomson’s book,
“Blueprint to a billion – 7 essentials to exponential growth”.
Indeed, HCL is
more comfortable in forging its own trail rather than following the expected –
thereby bringing about unexpected and path breaking results.
Service Offerings
HCL believes in
the good practice of regularly re-structuring and re-energizing its diversifi
ed portfolio of service offerings. By re-evaluating and realigning this
portfolio from time to time, HCL is able to develop a robust and resilient
business model. No single service line contributes more than 32% to the total
revenue even while maintaining a leading edge in key verticals where HCL
chooses to focus.
Custom Application
Services
The Custom
Application Services division at HCL leverages a domain-driven approach to
design, and implements scalable, reliable, robust, secure, and easily maintainable
applications that provide their customers with business differentiation through
IT. Service offerings include application development, management, support,
re-engineering, modernization, migration, and independent verifi cation and
validation. With more than 10,000 domain and technology experts supporting more
than 100 clients across geographies, this group contributes over
29% of HCL’s
revenues, and services at least two of the top five players in various
industries like retail, banking, insurance, media and publishing, gaming and
life sciences.
A customer centric
focus keeps HCL continuously investing and inventing robust methodologies,
tools, and processes. HCL’s BAIT is a new framework that allows the effi cient
alignment of IT with business; it provides a unifi ed view of all business
processes with the underlying IT landscape and helps reduce cycle time while
providing the lowest IT cost on a business transaction. Their unique Knowledge
Transfer methodology – ASSETTM ensures minimum cost with a smooth transition to
offshore, for customers. And right now HCL is investing significantly in niche
technologies and areas like cloud computing, pay as you go services and hosted
services.
With their
dedicated CoEs, skills are continuously being upgraded, and customers are
enjoying faster time to market as they leverage their extensive research and
development on reusable components and frameworks. Technology partnerships nurtured with
leading global solutions providers like Microsoft, TIBCO, WebMethods, Oracle,
Digite, and IBM, SUN Microsystems and others, enable HCL provide best-inclass
services and solutions to customers. Additionally, all their software
development centers are certifi ed with ISO 9001:2000, CMM Level 5 and British
Security Standard—BS7799, in keeping with their customers’ information security
requirements. Their customized software and application services have been
rated as much higher than the industry average on the parameters of
productivity, effi ciency, and lower defects, and they provide 100%
transparency to their clients through CXO dashboards with online
Engineering and
RandD Services [ERS]
HCL is one of the
few Indian companies with signifi cant focus on engineering services. Contributing
to over 19% of the company’s revenues, this group brings a balance to the
service portfolio unlike some of their peers. The ERS group offers end-toend
engineering services and solutions in hardware, embedded, mechanical and
software product engineering to industry leaders across Aerospace and Defence,
Automotive, Consumer Electronics, Industrial Manufacturing, Medical Devices,
Networking and Telecom, Offi ce Automation, Semiconductor, Servers and Storage
and Software Products.
HCL well
understands the importance of Research and Development (RandD) in augmenting
its customers businesses and is committed to providing these world-class
services to them. Over a decade of operating in complex multi-vendor
environments and customer value chains, they have the ability to seamlessly
integrate into their existing RandD ecosystem, working with other innovation
partners, captive centers, universities, industry bodies and manufacturing
partners. The group has recently started a business unit with a dedicated team to
focus on Defense, Space and Security (DSS). It has also developed the Business
Aligned Test Framework to specifically address the industry need for a standard
and cost-effective approach to testing and verification activities in hardware,
software, mechanical, system safety assessment, test engineering, prototyping,
design assurance and new product realization. The group has rich experience in
developing safety-critical embedded products involving cutting edge hardware,
complex middleware, rich applications and interactive GUI across multiple
processor families and real time operating systems. This group is Boeing’s 787
software partner developing subsystems for Boeing’s Tier-1 and Tier-2 partners.
In addition, HCL
reengineered the flight test system that is being used for certification and
regulatory approvals for Boeing 787. For the Swiss division of a global medical
devices major, HCL was responsible for the complete development of a Class III
implantable drug delivery medical device that has recently been launched in the
market. HCL’s ERS was selected by an Italian Aerospace major to reengineer the
complete aero structure of a transporter aircraft. With more than 35,000 parts,
the complete reengineering program reduced operational cost of upto 15% across
various systems. HCL runs the largest third party engineering centre for a
global networking OEM company. For a European Tier-1 automotive company, HCL
helped develop a complete infotainment solution for a leading French car
series. HCL foresees a shift towards clients preferring outsourcing companies
to share their long-term vision, risks, and rewards in developing product-based
ecosystems that impact client experience.
Towards this, HCL
is investing heavily in developing its own IPs and solutions to help customers’
impact the overall product ecosystem
faster and better. Solutions include a unified communication platform, a remote
diagnostic reusable module, telematics and test platforms in multiple
verticals. Some of their key IPs today are: Agora (HCL SaaS platform), Nimbo
(private cloud enablement solution), Cirrus (Microsoft Azure enablement
solution), Athena (sentiment analytics solution), Retail Track and Trace
solution, UECPX (unifi ed communications platform), ASPIRE (product portfolio
management system), Telematics platform, and H-PAC (Aerospace verifi cation
platform), amongst others.
This is what it
takes to make an RandD ecosystem truly business aligned. And this, coupled with
HCL’s 360 degree partnership approach, unique propositions like Concept to
Manufacture, Engineering Portfolio Optimization (EPO) and First 2.0, full
lifecycle expertise, IPs and frameworks and a strong vertical solutioning
capability have positioned them as the Business Aligned RandD partner to
several global technology giants.
HCL’s Enterprise
Applications Services (EAS) division provides best-in-class services and
solutions to customers in ERP, SCM, CRM, HCM, EPM, BI and Middleware. This is
enhanced by leveraging strong strategic partnerships with SAP, Oracle and
Microsoft. The EAS division accounts for over 22% of HCL’s revenue and is one
of the key areas of growth.
By acquiring Axon
group plc, HCL made one of the biggest acquisitions by an Indian company, in
recent times. HCL reverse merged its SAP practice with Axon and created HCL
AXON, the largest dedicated SAP Global Partner in the world. HCL won the FT
ArcelorMittal ‘Boldness in Business’ award in 2009 for this strategic
acquisition. AMR Research believes that the Axon acquisition puts HCL in the
Top 10 of SAP service providers,
with a combined
SAP consulting and support capability that is 60% larger than its closest
India-based competitor.
The success of the
acquisition has been recognized by analysts and clients. This year AMR
published a case study on the HCL AXON SAP implementation for Birmingham City
Council, highlighting the ‘huge business value’ generated (Ł400M worth of
savings), and categorized this as a ‘business transformation’ case. More
recently, IDC’s Marketscape report on SAP System Integrators has ranked HCL
higher than its competition. This has been supported by HCL AXON winning
strategic deals at, GSK, Vodafone and ITT. Additional success includes winning
the Frost and Sullivan Aerospace IT Solutions Provider 2010 award for
outstanding performance. This was followed up by HCL AXON announcing that its
iMRO solution that can reduce cost, complexity and risk for large and small
airlines manufacturers and third-party providers is now a SAP endorsed ERP
add-on.
The second element
of HCL’s EAS service line is Oracle Universe (OU), which provides the entire
range of end-to-end application life-cycle management services. The group
delivers high value solutions in Oracle, PeopleSoft, Siebel, JD Edwards,
Hyperion, Agile, Oracle Transportation Management, Stellent, and other Oracle
Edge applications and technology products. HCL’s OU has proven solution
accelerators and proprietary tools, built to support this Oracle product suite,
providing real value to clients. In addition to professional services, OU
provides product engineering on Oracle Applications and Fusion Middleware,
building connectors for Oracle’s Content Management products, and testing
services for Oracle product suites.
HCL’s EAS service line
is completed by its Microsoft group. This team enjoys a pivotal partnership
with Microsoft’s Business Solutions group. It has built capabilities on key
Microsoft Dynamics product lines, particularly Microsoft Dynamics AX and
Microsoft Dynamics CRM. The team provides life cycle services and solutions for
these products across retail, insurance, media and entertainment, hi-tech, and
manufacturing verticals. Being a Global Systems Integrator and Gold Certifi ed
Partner of Microsoft has enabled the team work with Microsoft to identify niche
market opportunities in the Dynamics space and develop solutions to address
specifi c client pain points. HCL is also one of the seven offshore Upgrade
Partners worldwide for Microsoft Dynamics AX 4.0. To complement its Dynamics
capability HCL recently launched the XpressMigrate suite of offerings for
Windows 7 migration, enabling enterprises to minimize risk, bring higher
visibility and reduce Windows 7 deployment costs by up to 25%.
HCL’s EAS team has
achieved Capability Maturity Model Integration (CMMI) Level 3 for Oracle
Universe and Microsoft Dynamics as confi rmed by SEI. The audit spanned
multiple lines, locations and types of projects.
HCL’s Enterprise
Transformation Services assists customers in developing a transformation
roadmap by aligning business with IT strategy. HCL partners with customers and
helps them identify the initiatives driving change, manage the transformation
process, and implement supporting technology solutions that add value to the
organization.
HCL’s ETS offers
an integrated approach for enabling transformations through the “Advise to
Execute” services portfolio. The service portfolio consists of Process
Transformation Services, Data Management Services, Integration Services,
Architecture Services, Disruptive Technology Services (Including Cloud related
services) and IT Strategy and Change Management services. This is offered
through the bouquet of best-in-class services in key areas including Middleware
and SOA, Data Warehousing and Business Intelligence Services, Enterprise
Content Management and Portals, Independent Verification and Validation, Mainframe and Midrange
Services, Business Consulting and Technology Consulting.
HCL’s ETS services
is backed by a rich set of IPs, frameworks and accelerators, domain solutions,
robust methodologies, niche skills and strong infrastructure and BPO
capabilities that puts ETS in a unique position to offer guaranteed benefi ts
of transformation to its customers. Methodologies employed are compliant with
industry standard frameworks such as ITIL, Six Sigma and CMM-I. Some of the
propositions and frameworks that the group has launched in 2009-2010 include
CoQ (Cost of Quality), “Test Factory in a Box”, EBITS (Enterprise Business
Intelligence Transformational Services), Social intelligence and xFIT (xFIT
addresses challenges in EAI, SOA and BPM testing). HCL’s ETS has recently won
several accolades from advisors and partners for its propositions, frameworks
and methodologies, technical depth, innovation and process delivery including
accolades for bolt-on framework FraME [Framework for Manufacturing Execution],
Visible Demand and EAD [Enterprise Analytics Dashboard]. In 2009, Butler Group
has profi led HCL’s Middleware and SOA practice as having a comprehensive
service suite encompassing the SOA lifecycle and various integration
requirements - IPs and frameworks that reduce the time to value. HCL featured
in the joint top spot for overall SOA client work and account management and
its maturity in current offerings of SOA and BPM services.
Highly purposed
and focused, Enterprise Transformation Services is a key area for HCL to drive
value in customer engagements. In the past year, in conjunction with the EAS
division, this group has bagged several global transformational high impact and
high value deals.
Infrastructure
Management Services (IMS)
HCL’s
Infrastructure Management Services group is the fastest growing business line
and contributes to over 22% of HCL Technologies’ total revenues. Through its
differentiated value proposition - “Industrialized IT Management and
co-sourcing model”, this practice has been able to carve a credible growth
story and solid foundation for the future. Today, it has close to 200+ customers
globally, out of which, 100 are G/F 1000 companies - world leaders in their own
space. The IMS division has been recognized as the leader in Global Delivery of
Infrastructure Management by several Industry analysts, and is said to be the
“leading light in RIM” by NASSCOM. HCL was the co-founder of the “NASSCOM IMS
forum”, which comprises of the leading industry players. David G Thomson in his
global best seller, “Blueprint to a Billion” has compared HCL’s Infrastructure
Services’ Division (ISD) growth story to world leaders like Cisco, Microsoft
and Google.
IMS delivery is
structured into six horizontal strategic business units such as End User
Computing Services, Data Center Services, Cross Functional Services, Enterprise
Network Services, Security Services, Integrated Operation Management, and
Mainframe and AS400 Services. Its vertical reach spans 15 industries –
Automotive, Chemical, Energy (Oil and Gas) and Utilities, Financial Services,
Hi-Tech, Insurance, Manufacturing, Retail, Travel, Tourism and Logistics,
Banking, Consumer Electronics, Food, Beverages and Tobacco, Independent
Software Vendor (ISV), Life Science, Healthcare and Pharmaceuticals, and
Telecom, Media, Publishing and Entertainment. IMS has a robust global delivery
network with 17 delivery centres across the globe of which, six are outside
• 250,000
large/mid-range servers and over 200,000 distributed computing servers
• More than 60 PB
of storage
• More than
250,000 network and security devices
• 800,000 mail
boxes, and 10 million helpdesk trouble Tickets
• Over 12,000
employees
This group has
received its share of accolades: TPI recognizes HCL among the Top 10
Infrastructure Providers in the world; Datamonitor’s Black Book of Outsourcing
ranks HCL as the #1 vendor in both Traditional IT Outsourcing as well as RIM
Outsourcing; Forrester featured HCL in their research study on Managed Desktop
Services in EMEA. HCL was among the only two Indian MNCs featured in the
report; Gartner Market Scope for Data Center Outsourcing, North America, rated
HCL ‘positive with the necessary technical skills and resources to support most
client requirements, and offer high-quality services; Gartner Magic Quadrants
for Helpdesk and Desktop Services in EMEA features HCL - the only Indian MNC to
be featured.
Business Process
Outsourcing (BPO)
HCL’s BPO Business
Services accounts for over 6% of the company’s revenues. This division of HCL Technologies
is heading towards a maturity level where a new form of BPO called
‘Transformational BPO’ is evolving which constitutes Full Process and Multiple
Process outsourcing. With over 11,000 professionals operating out of
HCL’s BPO Business
Services leadership credentials are myriad, including running the largest
telecom engagement in India; the first Indian BPO to enter the
Telecommunications Expense Management (TEM) market; the first Indian company
and 3rd in the world to be COPC certified in the specialized area of
collections; the first BPO company in the world to be successfully appraised at
Maturity Level 5 of People CMM. BPO Business Services is also the first BPO in
the world to evolve and adopt ‘Integrated Business Management System’ a
collation of best practices catering to multiple standards such as COPC, ISO
9001, OHSAS 18001 and ISO 14001. HCL’s BPO Business Services tops the Black Book
of Outsourcing’s list of Top Cross Industry BPO Vendors; the organization ranks
among the Top 10 ITeS-BPO companies in India (according to NASSCOM and
Dataquest); HCL is the largest BPO service provider in Northern Ireland, won
the largest engagement in Indian BPO history, and is the largest provider of
Telecom BPO services in Asia. HCL pioneered the blended shore operations for
Indian BPO service providers. HCL’s BPO Business Services division won the CIO
‘Ingenious 100’ Award 2009 for the second consecutive year (2009) for its IT
Service Management Platform which enables a process-driven blend of people and
technology resulting in 99.9% of service uptime. The annual award program by IDG India’s CIO magazine recognizes
organizations that exemplify the highest level of operational and strategic
excellence in information technology.
OVERVIEW
During the
financial year 2009-10, on a standalone basis, the Company’s revenues stood at
Rs.50787.600 millions registering a growth of 8.63% over the previous year and
on a consolidated basis, the Company’s revenues for the year 2009-10 stood at
Rs.121362.900 millions registering a growth of 18.64% over the previous year.
SCHEME OF
AMALGAMATION
During the year,
the Board of Directors of the Company, subject to requisite approvals, had
approved the Scheme of Amalgamation (“Scheme”) under section 391 to 394 of the
Companies Act, 1956 for amalgamation of HCL Technoparks Limited, wholly owned
subsidiary of the Company with the Company.
The Company has
filed the petition before the Hon’ble High Court of Delhi for approval of the
Scheme of Amalgamation. The Scheme, if approved, shall be effective from April
1, 2009.
SUBSIDIARIES/
BRANCHES FORMED DURING THE YEAR
HCL Technologies
Denmark ApS and HCL Technologies Norway AS In view of the new business
prospects of the Company, the Company has set up its step down subsidiaries in
FIXED ASSETS
v Goodwill
v
v
v Building
v Plant and Machinery
v Computers
v Software
v Furniture and Fixtures
v Vehicles
v Capital work in progress
AS PER WEBSITE DETAILS
PROFILE
Subject is a leading
global IT services company, working with clients in the areas that impact an
Subject is a $5
billion leading global technology and IT enterprise comprising two companies
listed in
Subject roots in India go back to the year 1993 when it’s wholly owned
subsidiary subject Comnet (The Infrastructure Services Division of subject was
instituted to focus on the domestic communication and connectivity services
market. One of the early entrants in
v
Banking and Financial Services
v
Insurance
v
Life sciences and Healthcare
v
Energy and Utilities
v
Government and Defense
v
Media, Publishing and Entertainment
v
Manufacturing
v
Retail
v
Education
v
Real Estate
This team is 5,000 people strong dedicated to India Market who service its
175+ significant clients across 550 points in the country.
Subject is known to collaborate with forward – looking customers through
the following 3 engagement models:
Systems Integration- Focus on Complex
implementation involving multiple technologies with turnkey programme
management and partnerships across IT and Non IT like IBMS, DC Build components
Managed Services- ITIL driven
Proactive Full or Discrete IT Managed Services delivered in various models like
RIM, complete onsite or hybrid. A strong pedigree of Network and Managed
security services in
Strategic Sourcing- Focus on
transformation benefits to the customer in a collaborative model to resolve
common business problems using the right mix of people, technology and process
Some of core Services offerings include:
Infrastructure
management Services ( IMS)
v
End-user computing
v
Datacenter Operations and transformation
v
Network and Security Services
v
Cross Functional Services
v
Integrated Operations Management Services
v
Communications and Connectivity Services
Enterprise
Application Services - services across globally renowned, packaged
applications like SAP, Oracle, TIBCO, Microsoft etc. They are committed to the
Indian Market and will continue to invest more to further enrich the end-to end
IT offerings for this market. The flexible engagement models, rich heritage of
technology solutions and over 30 years of leadership across service areas give
us a strategic advantage to meet the nation's IT needs.
Enterprise
Transformation Services – “Advise to Execute”
approach, first to identify the key challenges faced by organizations and areas
of optimization and then to execute the remedies to streamline the operations
across Business Process, Application, Information and Infrastructure landscape.
Custom applications - World-class
application development, maintenance, and consulting outsourcing-services to
help increase customer's productivity and minimize their total cost of
ownership.
Engineering and R and D – Operations
Transformation Outsourcing Services (OTOS) – Transformation services in
collaboration with the client to streamline operations across People, Process
and Technology using subject BAIT (Business Aligned IT) framework.
Telecom Expense management - Gain Share
model to reduce Telecom expenses – Voice (
Strategic Cost and
performance management - Provide 100% Cost Transparency; Reduce
operations Cost substantially; and move from Fixed Cost to Variable Cost Model
across IT, Print and Telecom expenses providing 24*7 Proactive Management
Services to improve performance, better visibility and control.
Managed Print
Services - 100% Cost transparency an
The services are backed by an extensive direct support infrastructure
spread across 550 locations nationwide, which offer 24 x 7 support offering for
critical sites.
Subject Employee First philosophy has also helped in Customer Engagement.
Subject has been consistently rated as No. 1 in Customer Satisfaction by DQ –
IDC survey. This philosophy has empowered employees and has drastically reduced
the attrition rates. In 2009, subject has been rated by Hewitt Associates as
the No. 1 Employer in
Subject is known to be the harbinger of technology in the country. The
partnerships with technology leaders like Cisco, Oracle, SAP, Cisco, EMC,
Microsoft, Dell, Sun, HP, IBM, CA go back to the time when India was being
recognised as a growing and strategic market. Along with global capability,
subject has leveraged such relationships to create value for Indian customers
and provide them services which not only helps them reduce IT costs but also
enables them to stay ahead of competition.
They are committed to the Indian Market and will continue to invest more to
further enrich the end-to end multi- service offerings for this market.
PRESS RELEASE
HCL Technologies Named 40th on
Software Magazine’s
28th Annual Software 500
Software Magazine
Ranks HCL Technologies as one of the World’s Largest
Software Companies
HCL Technologies was
ranked 40th, up four spots from last year’s ranking, with software revenues up
6.2% YoY.
“The 2010 Software
500 results show that revenue growth in the software and services industry was
healthy, with total Software 500 revenue of $491.7B billion worldwide for 2009,
representing virtually flat growth from the previous year,” says John P.
Desmond, editor of Software Magazine and Softwaremag.com.
“The Software 500
helps CIOs, senior IT managers and IT staff research and create the short list
of business partners,” Desmond says. “It is a quick reference of vendor
viability. And the online version, to be posted soon, is searchable by
category, making it what we call the online catalog to enterprise software.”
The Software 500 is
a revenue-based ranking of the world’s largest software and services suppliers
targeting medium to large enterprises, their IT professionals, software
developers and business managers involved in software and services purchasing.
Some 47% percent of
the 2010 Software 500 companies are privately held.
The ranking is based
on total worldwide software and services revenue for 2009. This includes
revenues from software licenses, maintenance and support, training and
software-related services and consulting. Suppliers are not ranked on their
total corporate revenue, since many have other lines of business, such as
hardware. The financial information was gathered by a survey prepared by King
Content Co.
About Digital
Software Magazine, the Software Decision Journal, and Softwaremag.com
Digital Software Magazine, the Software Decision Journal, has been a brand name in the high-tech industry for 30 years. Softwaremag.com, its Web counterpart, is the online catalog to enterprise software and the home of the Software 500 ranking of the world’s largest software and services companies. Software Magazine and Softwaremag.com are owned and operated by King Content Co.
About HCL
Technologies
HCL Technologies is a leading global IT services company, working with clients in the areas that impact and redefine the core of their businesses. Since its inception into the global landscape after its IPO in 1999, HCL focuses on ‘transformational outsourcing’, underlined by innovation and value creation, and offers integrated portfolio of services including software-led IT solutions, remote infrastructure management, engineering and R&D services and BPO. HCL leverages its extensive global offshore infrastructure and network of offices in 26 countries to provide holistic, multi-service delivery in key industry verticals including Financial Services, Manufacturing, Consumer Services, Public Services and Healthcare. HCL takes pride in its philosophy of ‘Employee First’ which empowers our 64,557 transformers to create a real value for the customers. HCL Technologies, along with its subsidiaries, had consolidated revenues of US$ 2.7 billion (Rs. 125650.000 millions), for the year ended as on 30th June 2010.
About HCL
HCL is a $5.3 billion leading global technology and IT
enterprise comprising two companies listed in
Forward-looking Statements
Certain statements
in this release are forward-looking statements, which involve a number of
risks, uncertainties, assumptions and other factors that could cause actual results
to differ materially from those in such forward-looking statements. All
statements, other than statements of historical fact are statements that could
be deemed forward looking statements, including but not limited to the
statements containing the words 'planned', 'expects', 'believes', 'strategy',
'opportunity', 'anticipates', 'hopes' or other similar words. The risks and
uncertainties relating to these statements include, but are not limited to,
risks and uncertainties regarding impact of pending regulatory proceedings,
fluctuations in earnings, our ability to manage growth, intense competition in
IT services, Business Process Outsourcing and consulting services including
those factors which may affect our cost advantage, wage increases in India, customer
acceptances of our services, products and fee structures, our ability to
attract and retain highly skilled professionals, our ability to integrate
acquired assets in a cost effective and timely manner, time and cost overruns
on fixed-price, fixed-time frame contracts, client concentration, restrictions
on immigration, our ability to manage our international operations, reduced
demand for technology in our key focus areas, disruptions in telecommunication
networks, our ability to successfully complete and integrate potential
acquisitions, the success of our brand development efforts, liability for
damages on our service contracts, the success of the companies / entities in
which we have made strategic investments, withdrawal of governmental fiscal incentives,
political instability, legal restrictions on raising capital or acquiring
companies outside India, and unauthorized use of our intellectual property,
other risks, uncertainties and general economic conditions affecting our
industry. There can be no assurance that the forward looking statements made
herein will prove to be accurate, and issuance of such forward looking
statements should not be regarded as a representation by the Company, or any
other person, that the objective and plans of the Company will be achieved. All
forward looking statements made herein are based on information presently
available to the management of the Company and the Company does not undertake
to update any forward-looking statement that may be made from time to time by or
on behalf of the Company.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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 :
Our 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.
Our 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.45.37 |
|
|
1 |
Rs.70.04 |
|
Euro |
1 |
Rs.58.93 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.