SUMMER TRAINING REPORT

Undertaken at HCL

Submitted in partial fulfillment of the requirements for the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

to

Guru Gobind Singh Indraprastha University, Delhi

Under the Guidance of: Sachin Shabrawal Professor

Submitted by: Vagisha Sharma BBA V Sem. (E) Enrollment No. 0512131708

Session 2008 - 11
1 TECNIA INSTITUTE OF ADVANCED STUDIES
Approved by AICTE, Ministry of HRD, Govt. of India Affiliated To Guru Gobind Singh Indraprastha University, Delhi

INSTITUTIONAL AREA, MADHUBAN CHOWK, ROHINI, DELHI- 110085 E-Mail: director.tecniaindia@ gmail.com, Website: www.tecnia.in

Certificate

I, Ms Vagisha Sharma, Roll No. 0512131708 certify that the Summer Training Report (Paper Code BBA 311) is done by me and it is an authentic work carried out by me at HCL. The matter embodied in this has not been submitted earlier for the award of any degree or diploma to the best of my knowledge and belief.

Signature of the Student Date:

Certified that the Summer Training Report (Paper Code BBA 311) done by Ms Vagisha Sharma Roll No 0512131708, is completed under my guidance.

Signature of the Guide Date: Name of the Guide: Designation:

Countersigned Director

ACKNOWLEDGEMENT

I would like to take this opportunity to thank all those people without whose cooperation and support, this study would not have been possible. First and foremost, I would like to express my gratitude to Dr. R.C.Sharma, Tecnia Institute of Advanced Studies for his guidance, encouragement and patience.

I am also thankful to Mr.Anupam Mishra for giving me the opportunity to work with the organization. My heartfelt thanks to Mr. Joshi HR Department HCL who guided me throughout my training in the organization, and helping me in various steps.

I thank the management, officers and staff of HCL for their cooperation, and valuable time. Special thanks to HCL HR Department staff Arun, Rashmi and Ajay for their help and support and providing valuable inputs and perspectives.

I would like to thank my family and friends for their support, encouragement, cooperation and suggestions have helped me in successful completion of this project.

Vagisha Sharma

TABLE OF CONTENTS
Topic Chapter Number 1 - Company profile Chapter Number 2 SWOT Analysis Chapter Number 3 Financial Analysis Chapter Number 4 Lessons Learnt Chapter Number 5 Bibliography PageNo. 9 29 33 45 53

LIST OF TABLES
Table No. 1 Manpower Title Page No. 8

LIST OF SYMBOLS
S.No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Symbol , ; : % . $ * # / @ ( ) { } _ Nomenclature & Meaning Hyphen Comma Semi-Colon Colon Percentage Full-Stop Dollar Asterisk Number Sign Solidus Commercial at/At the Rate Left Parenthesis Right Parenthesis Left Curly Brackets Right Curly Brackelts Apostrophe Low line/Underscore

LIST OF ABBREVIATIONS
S No 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. Abbreviated Name HCL KM Rs. GOI PSU O and M US HR S and T CPM GM CE CEE CSTE Asst. HOD AGM JGM DGM ED F O R and T Full Name Hindustan Computers Limited Kilo Meters Rupees Government of India Public Sector Unit Operation and Maintenance United States Human Resource Signal and Telecommunication Chief Project Manager General Manager Chief Engineer Chief Electrical Engineer Chief Signal and Telecom Engineer Assistant Head Of the Department Additional General Manager Junior General Manager Deputy General Manager Executive Director Finance Operation Recruitment and Training 6

Chapter 1 COMPANY PROFILE

1.1.

COMPANY

PROFILE

1.1.1.Born in 1976, HCL has a 3 decade rich history of inventions and innovations. In 1978, HCL developed the first indigenous micro-computer at the same time as Apple and 3 years before IBM's PC. During this period, India was a black box to the world and the world was a black box to India. This micro-computer virtually gave birth to the Indian computer industry. The 80's saw HCL developing know-how in many other technologies. HCL's in-depth knowledge of Unix led to the development of a fine grained multi-processor Unix in 1988, three years ahead of Sun and HP.HCL's R&D was spun off as HCL Technologies in 1997 to mark their advent into the software services arena. During the last eight years, HCL has strengthened its processes and applied its know-how, developed over 28 years into multiple practices - semi-conductor, operating systems, automobile, avionics, bio-medical engineering, wireless, telecom technologies, and many more.

1.1.2. Today, HCL sells more PCs in India than any other brand, runs Northern Ireland's largest BPO operation, and manages the network for Asia's largest stock exchange network apart from designing zero visibility landing systems to land the world's most popular airplane.HCL Info systems Ltd is one of the pioneers in the Indian IT market, with its origins in 1976. For over quarter of a century, we have developed and implemented solutions for multiple market segments, across a range of technologies in India. We have been in the forefront in introducing new technologies and solutions. In the early 70s a group of young and enthusiastic and ambitious technocrats embarked upon a venture that would make their vision of IT revolution in India a reality. Shiv nadir and five of his colleagues got together and 1975 set up a new company MICROCOMP to start with; they started to capitalize on their marketing skills. Micro comp marketed calculators and within a few month of starting operation, the company was out selling its major competitors. On 11th

August, 1976 HINDUSTAN COMPUTERS LIMITED was incorporated as joint venture between the entrepreneurs and UPSCE, with an initial equity of Rs.1.83 Lacs.

1.1.3. This year (2009-10), IT industry is expected to grow by 20% over 2010, as per IDC, which is amongst the highest rates of growth in the world. With employment to 2.13 crore households already in place, the National e-Governance Plan (NEGP) is surging ahead with investments of Rs. 23,000 crores planned for initial five years, for identified core projects.

1.1.4.HCL Info systems Ltd, with annual revenue of US$ 2.7 Bn (Rs.11,855 crores) is Indias premier information enabling and ICT System Integration company offering a wide spectrum of ICT products that includes Computing, Storage, Networking, Security, Telecom, Imaging and Retail. HCL is a one-stop-shop for all the ICT requirements of an organization. Indias leading System Integration and Infrastructure Management Services Organization, HCL has specialized expertise across verticals including Telecom, BFSI, E-Governance & Power.

1.1.5. HCL has Indias largest distribution and retail network, taking to market a range of Digital Lifestyle products in partnership with leading global ICT brands, including Nokia, Apple, Casio, Kodak, Toshiba, and Bull, Ericsson, Cisco, Microsoft, Konica Minolta and many more. HCL today has Indias largest vertically integrated computer manufacturing facility with over three decades of electronic manufacturing experience HCL desktops is the largest selling brand into the enterprise space. With Indias largest ICT services network that reaches to every corner of India, HCLs award winning Support Services makes it the preferred choice of enterprise and consumers alike.

1.1.6. HCL Enterprise is a leading global technology and IT enterprise with annual revenues of US $4.1 Bn (Rs. 17,889 crores). The HCL Enterprise comprises two companies listed in India HCL Technologies & HCL Info systems. The 3-decade-old enterprise, founded in 1976, is Indias original IT garage start-up. Its range of offerings span Product Engineering, Technology and Application Services, BPO, Infrastructure Services, IT Hardware, Systems Integration, and distribution of ICT products. The HCL team comprises over 47,000 professionals of diverse nationalities, who operate from 17 countries including 360 points of presence in India. HCL has global partnerships with several leading Fortune 1000 firms, including leading IT and Technology firms.

1.1.7. GENERAL INFORMATION Head Office: HCL Info system Ltd. G-8, 9 Sector-3 Noida 201301, U.P. Website: www.hclinfosystem.in www.hcl.in Contact: 0120-2522700, 0120-2520977, 0120-2526518-19 Fax: 0120-2523791

1.2. NATURE OF THE ORGANZATION

1.2.1. HCLs growth has been result of its unique business model and clearly defined growth strategies. Offshore-led, technology centric, powered by domain expertise and a comprehensive understanding of diverse business verticals. HCLs growth has been balanced and keeps exploring new dimens ions.HCL target the markets all over the world. With preference across the globe the company has had a global reach and a vast rollout support capapbility.Today HCL is preferred partner to over 362 prestigious organizations in the world, including 37 Global 500 companies.

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1.2.2. HCL has domain experts and a large pool of resources that have extensive experience in handling large and complex projects in the verticals. In addition to long standing customer relationships and key technology alliances. HCL has embarked on an aggressive non-linear growth strategy. The acquisitions, alliances and joint-ventures are being forged to strengthen the companys solution delivery capacities across select domains and to enhance revenues and profit growths.HCL can also bring in conventional IT skills of application development manitainenece, production support, porting/migration and testing across a variety of platforms using the latest technological advancements.

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1.3 VISION AND MISSION OF HCL

1.3.1. VISION OF HCL It is the most preferred employer and principal taking leading edge IT & Telecom products and services to the masses through sustained excellence.

Together we create the enterprise of tomorrow

1.3.2. MISSION OF HCL To provide world class information technology solutions and services to enable our customers to serve their customers better.

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1.4 PRODUCT AND SERVICES PROVIDED BY HCL

1.4.1.ComputingProducts

Offering an entire range of Computing Products for Corporate, Businesses and Small to Large Setups.

1.4.2.DisplayProducts

Introducing great display products that you would love setting your eyes on.

1.4.3.StorageSolutions

Offering an entire range of storage solutions.

1.4.4.SoftwareLicenses

Enjoy benefits of genuine software licenses through HCL Info systems.

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1.4.5.POS,KIOSK,CustomerServiceCounterProducts

Offering an entire range of POS products and solutions.

1.4.6.Racks&Enclosures

HCL offers a comprehensive range of 19 racks with standard accessories for Computer networking applications and IP Enclosures of all standards

1.4.7.OfficeAutomationImaging&PrintingSolutions

Introducing world class imaging products and solutions to meet business requirements.

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1.4.8.OfficeAutomationTelecom&AVSISolutions

Introducing world class telecom products and AVSI solutions to meet business requirements.

1.4.9.NetworkingProducts

Enjoy fast data transfer with our exclusive range of Networking Products.

1.4.10.DigitalLifestyleProducts&Solutions

Offering an entire range of Digital Lifestyle Products and Solutions for entertainment and business.

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1.4.11.SoftwareSolutions

Bringing to you world class software solutions that you can depend on

1.5. SIZE IN TERMS OF MANPOWER AND TURNOVER OF HCL

1.5.1. MANPOWER OF HCL

AS ON MAR 31,2010 TOTAL SOFTWARE SERVICES TOTAL ORGANIC TECHNICAL OFFSHORE 9271 6881 6170 5461 12003

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ONSITE SUPPORT SALES AND MARKETING OTHERS OFFSHORE ONSITE

709 711 104 607 553 158

NON-ORGANIC TECHNICAL SUPPORT

2390 2108 282

ORGANIC TECHNICAL SUPPORT

724 451 273

BPO TOTAL ORGANIC NON-ORGANIC 1860 1678 182

GOVERNMENT NON-ORGANIC TECHNICAL SUPPORT 148 109 39

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1.5.2. TURNOVER OF HCL 1.5.2.1.Leading Indian IT and ITeS services provider HCL Technologies has entered into a fiveyear IT management contract to the tune of $500 million with the US-based pharmaceutical giant Merck Sharp and Dohme (MSD). According to the deal, HCL will offer an assortment of facilities, which include remote infrastructure management (RIM), software-driven IT solutions, engineering and business as well as knowledge process expertise. 1.5.2.2.Quoting Richard G Branton, MSD vice-president (Application Services), a news website reports that Merck has taken advantage of HCLs wide-ranging proficiency in healthcare and life sciences with a view to make its operations more efficient as well as strengthen the firms IT portfolio. Now, Merck intends to make use of the Indias fifth largest IT service vendors near shore delivery system in the United States. 1.5.2.3.Another report said that consequent to the deal, HCL will augment its existing team in the United States, especially in North Carolina by recruiting local talents to execute the new projects. In addition, Merck will henceforth also leverage HCLs global delivery centers located in Krakow (Poland) and Shanghai. 1.5.2.4.HCLs deal with Merck is being seen as a landmark achievement for the Indian IT firm since huge deals of around $300 million or more have almost vanished from Indian IT sector during the last two years, as the average volume of contracts was reduced to the variety of $50 million-$120 million since CIOs lashed their IT budgets during recent economic recession. 1.5.2.5.According to HCL president (Americas) Shami Khorana, although this is certainly not among the largest deals ever to be signed by any Indian IT service provider, it is definitely one of the biggest since the post market meltdown period. He further said that the company was proud of its growth in the pharmaceutical and healthcare sector. It may be mentioned here that healthcare and life sciences comprised nearly eight per cent of the $685 million revenues earned by HCL Technologies during the first three months of 2010. 1.5.2.6.Hardware and systems integrator HCL Info systems today posted 3.2 per cent growth in net profit for the third quarter ended March 31. Net profit stood at Rs 60.09 crore, compared to Rs 58.2 crore in the year-ago period.However, gross sales were down by 5.8 per cent to Rs 2,842.4 crore from Rs 3,018.2 crore, because of lower revenue from telecommunication and office automation business. HCL Infosystems earned Rs 1,884.7 crore from telecommunication and office automation business, compared to Rs 2,152.6 crore in the corresponding quarter last year. 1.5.2.7."Around 65 per cent of our revenue comes from Nokia and they saw heavy competition from the low-end and dual-SIM players. Nokia did not have products in this area and they crunched the inventory. In fact, Nokia was to launch new products in April," said Ajai Chowdhry, chairman and CEO, HCL Infosystems.The firm has been roped in by the Unique Identification Authority of India to offer biometric security, enrollment and delivery systems to Aadhaar, or the UID (Unique Identity) project.

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1.5.2.8."We are offering some products for the census and the public distribution system (PDS) to help create the database of Aadhaar. We will issue smart cards after doing the initial surveys, enrollment, integration, delivery of cards and then back ending with the software. We are already providing similar solutions in Chandigarh for PDS," added Chowdhry.The company would also bid for training enrolling agents under the UID project. The project aims at training over one lakh enrolling agents, throwing up opportunities for large training companies like NIIT, Aptech and HCL Infosystems. In fact, the company is seeing momentum in laptops.HCL Infosystems plans to expand in the Middle East, Africa and South East Asia through inorganic growth.Sequentially, net profit rose 7.13 per cent from Rs 56.09 crore in the trailing quarter, while gross sales fell 6.9 per cent from Rs 3,054.2 crore. It posted a foreign exchange gain of Rs 12.2 crore. It has a backlog of orders worth Rs 2,200 crore and headcount for the quarter stood at 6,500.HCL Infosystems stocks rose 1.3 per cent on the BSE Sensex to close at Rs 133.65.

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1.6. MARKET SHARE AND POSTION OF HCL

1.6.1. MARKET SHARE OF HCL

1.6.1.1.HCL Infosystems, India's premier information enabling company was rated as the number one Desktop PC Company by IDC India's Quarterly PC market tracker report. According to the report, HCL recorded an impressive growth in terms of unit shipments during the AMJ in 2010 maintaining its leadership position in the desktop market with a market share of 13.8%. Mr. George Paul, Executive Vice President - Marketing, HCL Infosystems Limited, said, "This growth is a testimony to the success of our four pronged strategy of creating buying power through introduction of low cost PCs & EMI schemes in partnership with banks, shaping aspirations by generating awareness, tailoring local solutions like RP2- an innovative power solution to tackle erratic power issue & improving access by expanding direct & indirect distribution network across the country." In comparison with 2009 to 2010, HCL's market share increased from 12.4% to 13.8%, a growth of 1.4% in the overall Desktop market, which include commercial & home segment. In this period, HCL sold 130600 units. In the consumer PC market, HCL sold 49600 units. HCL's market share increased from 11.5% in 2009 to 14.8% in 2010. In commercial PC segment, which comprises of around 65 % of total Desktop PC market, HCL
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sold over 81,000 units in 2010. In this segment, HCL's market share increased to 13.2% in 2010 from 12.9 % in 2009. In x86 Server space, HCL crossed the 5000 mark by selling 5170 units in a quarter, a YOY growth of 165%. HCL's market share increased from 12.9% in 2009 to whopping 20.9% in 2010. Recently, HCL announced the launch of 'PC for India' - the HCL sub 10 K PC, specially developed and launched by the company along with the IT minister in Chennai. With these products, the company now has the most extensive product range right from the value for money PC - 'PC for India' to ultimate digital convergence device - Beanstalk Neo. HCL has aggressive plans to reach out to B & C class cities by expanding its sales & support network. Another major development was the unveiling of the RP2 System, conceived by the HCL labs, a technological innovation to solve various power related problems that hinder PC usage and penetration across the country. It runs on widely and easily available car battery using RP2 technology. It is expected to catalyze the PC penetration in the country. Keeping in line with its commitment of constantly evolving new products to meet consumer needs, the company launched a slew of new products during the year. These include EzeeBee pride at sub 15 K price point, HCL PC for India, the 4 terminal PC, the micro BTX form factor in PCs. HCL Infosystems, during the year, also launched a plethora of offerings in the home entertainment segment.

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1.6.2. POSITION OF HCL

1.6.2.1.HCL Infosystems, India's premier information enabling company, maintained its number one position in the Desktop PC segment for 2010. According to the recent IDC report, HCL became the first company in the Indian PC market to cross one lakh unit milestone. HCL leads the market ahead of the two MNCs, with a market share of 13.3 % up from 10.6%2009.Mr George Paul, Vice President - Marketing, HCL Infosystems Limited, said, "The IDC results bear testimony to the consumers increasing confidence in HCL Infosystems to meet their diverse IT needs. We, in turn, have committed ourselves to deliver better value and quality in our products. The recent positive announcements by the government in excise & custom duty reduction on computers have increased the share of branded PCs in India. We have witnessed an increase in the growth on branded PCs". Comparing 2009 to 2010, HCL's market share increased to 13.3 % from 8.9 %, a whopping growth of 88.5 %. The market share of the nearest MNC was less than 10 %. In the commercial PC segment, which comprises 67 % of the total Desktop PC market, HCL sold almost 83,000 units. In this segment, HCL's market share increased from 10.4 % to 15.3 % in the same period last year, while the nearest MNC brand had a market share of only 10.2 %. In this period HCL registered a massive growth of 78 % in market share. In the consumer PC market HCL registered a growth of 148.4 % for the same period last year. This is the highest growth by any manufacturer in India in this period. "We have been rated as number one PC manufacturer for the third consecutive year in the commercial PC segment by IDC. The reports from industry experts affirm the vast potential we have to spread the power of computing across the length and breath of the country",
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concluded

Mr

Paul.

1.6.2.2.HCL Infosystems recently bagged orders for its Enterprise business from Indian Overseas Bank, Chennai; Corporation Bank, Bangalore; Kerala Forestry; LIC, Mumbai; AP Land Records, Hyderabad; Commercial Taxes, Kerala; Tamil Nadu Urban Development Project, Chennai; HARTRON, Chandigarh; Oriental Bank of Commerce, Gujarat Alloys, Tata Teleservices, AP Transport & Blazeflash, Hyderabad. The company also received orders for large System Integration projects from BSNL Chandigarh and the Haryana Police.The positive announcements by the government in excise & custom duty reduction on computers announced earlier this year will encourage a buyout growth of branded PCs. HCL was the first company to pass on the benefits in terms of a cost reduction to the consumers. The company redefined the price point of the branded PCs in the Indian desktop market by announcing the availability of the EzeeBee range priced below the Rs 15,000 mark. EzeeBee is designed and manufactured to give maximum reliability and compatibility across applications and different operating systems. HCL recently launched the HCL Beanstalk Neo; which has been specially developed by the company utilizing the latest Microsoft Windows XP Media Center Operating System and Intel's Hyper Threading technology. This latest product from the HCL stable is available across the country through the company's channel network.

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1.7. PRESENT LEADERSHIP

AJAI CHOWDHRY (Chairman & CEO) An engineer by training, Ajai Chowdhry is one of the six founder members of HCL and took over the reins of HCL Infosystems, the flagship company of the group, as President and CEO in 1994. He was appointed the Chairman of HCL Infosystems in November 1999. In recognition of his contribution in championing the cause of the domestic Indian IT industry, Ajai has been conferred the DATAQUEST IT Man of the Year 2007 Award amongst other awards.

J V RAMAMURTHY (President and Chief Operating Officer) J V Ramamurthy is President and Chief Operating Officer, HCL Infosystems Ltd. He brings 3 decades of diverse Industry experience and leadership to the company. A technocrat and a man of broad vision, he has spearheaded companys entry into number of new verticals and partnerships.

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SANDEEP KANWAR (CFO & EVP)

Sandeep Kanwar joined HCL in 1988 and in a span of eight years progressed to the position of Chief Financial Officer at the young age of 35. He is well respected amongst colleagues & customers for his financial acumen and management skills.

HARI BASKARAN (EVP)

Hari, a BE graduate and alumni of IIM - Bangalore, has been instrumental in building up the largest retail network for digital life style products in the country. He heads the Distribution and Marketing Services and Retail business division for HCL.

GEORGE PAUL(EVP )

George Paul, a graduate in Electronics &Telecommunications joined HCL in 1983. He heads the Marketing Function along with HCL R&D.

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RAJEEV ASIJA (EVP )

Rajeev, an engineering graduate, joined HCL in 1983,. With two decades of industry experience, he heads the Enterprise Solutions & services of HCL.

RAJENDER KUMAR (EVP)

Rajender Kumar joined in 1976. With over three decades of industry experience in procurement, manufacturing & channel development, he heads the Corporate Initiatives including Quest for Excellence Program.

M CHANDRASEKARAN (Sr. VP)

M Chandrasekhar joined HCL in 1984. With over two decades of industry experience in sales, support and marketing, he heads the office automation products business for HCL.

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VIVEK PUNEKAR (VP HR )

Vivek joined HCL in 1986. An engineer by profession with over two decades of industry experience in various functions, he heads the HR function for the company. Credited with innovative HR initiatives that has made HCL among the best companies to work for

1.8. SOURCES OF DATA COLLECTION

1.8.1. The sources of data collection were primary and secondary source. Primary data has been sending for analysis of the objective of research. As well as secondary data proved to be helping hand incompletion of the project.

1.8.2. Primary data: Primary data are those, which are, collected for the first time, and it is original in character. This is collected through personal interactions and interviews.

1.8.3. Secondary data: Secondary data on the other hand are those which have already been collected by someone else and which have already been passed through the statistical process. 1.8.4. In this secondary data used the journals and books present in HCLs liabrary, and books of various authors like C.B. Gupta and T.N. Chabra, the google search engine (www.google.co.in) and the official website of HCL

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1.8.5. Since the main objective of the project, is to analyse the organisation in a detailed manner and find out the variation/deviations in the concept taught in classroom and the corporate world, one needs to have the depth knowledge the customer views, and their perceptions.

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Chapter 2 SWOT ANALYSIS

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2.1. STRENGTH AND WEAKNESSES OF HCL

2.1.1. STRENGTH OF HCL

a) Wide Range of Products and Services like Bpos, Software Services, Infrastructure Management which cater into both large and medium size companies. b) Global Coverage in countries like U.S, Europe, Japan etc c) Strong employees base of upto 50000Pax. d) Support sales activities by understanding the customer business better. e) Keep up-to-date on what competition is doing. f) Its revenue has increased from 60.7bn in 2007 from 114bn in2009 which shows its increasing trend.
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2.1.2. WEAKNESSES OF HCL

a) One of the key weaknesses of HCL is that it has lost projects in continuation like recently BFSI cuts projects. b) HCL has always a weakness in TIER1 sectors. c) Total asset turnover is one of the weaknesses of HCL as they has always failed to materialize its assets in right direction. d) Lack of innovation and distribution network especially in case of laptops has reflected HCLs weakness.

2.2. OPPURTUNITIES AND THREATS OF HCL 2.2.1. OPPURTUNITIES OF HCL

a) Acquisitions:-HCL has already done 3 major acquisitions like Liberta. This enables them to expand and create opportunity for them to wide there spectrum. b) Key opportunities lies in the countries like Eastern Europe and APAC (AsiaPacific Region). c) Mid Market segment is the opportunity area as against fortune200 companies. d) Opportunity of doing better on return on equity from 21.42% by beating Satyam (26.08%) e) Increasing its market share from 9.8% vs 19.7%(HP)

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2.2.2. THREATS OF HCL

a) One of key threat for HCL and the industry as a whole is the ban of outsourcing from India due to new regulations from U.S b) Dip in quarterly Sales by 5% can lead to loss of market share and product depreciation. c) Small Players and manufactures are trying to enter into the segment where they can provide much cheaper products then HCL which will be a rising competition for HCL to stand.

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Chapter 3 ANALYSES OF FINANCIAL STATEMENTS

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3.1. Analysis of Balance Sheets

Balance Sheet As on 31st March 2009 and 31st March,2010
S.NO 1. 2. 3. 4. 5. 6. 7. 8. 9. Capital and Liabilities Share Capital Reserve And Surplus Debentured and Bonds Loans and Borrowings Deposit Liabilities Bills Payable Proposed and Unpaid Dividend Income Tax Liabilities Other liabilities Total Liabilities Sche. 4.1 4.2 4.3 4.4 4.5 4.6 FY 09-10 838,821,000 1,364,804,055 300,000,000 312,000,000 33,322,946,246 148,655,592 230,524,766 20,522,280 378,574,715 36,916,848,654 FY 08-09 831,400,000 1,089,837,580 300,000,000 23,976,298,535 49,429,700 140,790,370 41,143,107 720,443,592 27,149,342,884

4.7

S.NO 1. 2. 3.

Assets Cash in hand Balance With NRB Balance with other Banks & Financial Institutions Money at Call Investments Loan, Advances and Bills Purchased Fixed Assets Non-Banking Assets Other Assets Total Assets

Sche. 4.8 4.9 4.10

FY 09-10 944,695,793 4,787,163,541 432,511,829

FY 08-09 822,989,425 1,080,914,554 764,067,851

4. 5. 6.

4.11 4.12 4.13

5,948,480,273 23,884,673,616

346,000,000 5,059,557,544 18,339,085,562

7. 8. 9.

4.14 4.15 4.16

427,157,451 492,166,151 36,916,848,654

360,512,480 376,215,468 27,149,342,884

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3.1.1 As we are going to analyze the Balance Sheet of the year 2009 and 2010 we will find out four ratios a) b) c) d) Current Ratio Quick Ratio Debt-Equity Ratio Return on Investment

3.1.2. Firstly we will discuss about Current Ratio. Current Ratio is ideal in 2:1 form and higher the ratio means imply availability of idle fund in the firm, piled up stock because of poor sales, locked amount in debtors due to slack collection policy. A low ratio implies lack of liquidity and storage of working capital. Current Ratio is calculated as:

Current Ratio = Current Assets Current Liabilities HCLs current ratio in 2010 and 2010 is as follows: YEAR 2009 2010 CURRENT RATIO 1.18:1 1.21:1

This show in 2009 HCL has idle fund in the firm, piled up stock because of poor sales, locked amount in debtors due to slack collection policy. But in 2010 the situation is totally changed and now it implies lack of liquidity and storage of working capital. 3.13. Secondly the Quick Ratio, it is in ideal form when it is in1:1 form .It shows availability of funds so higher the ratio better for the organization. It studies the proper financial picture. It is calculated as: Quick Ratio= Quick Assets Current Liabilities

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HCLs quick ratio in 2009 and 2010 is as follows: YEAR 2009 2010 QUICK RATIO 1.2:1 1.1:1

This shows that in 2009 HCL has more amount of funds available with it as compared to 2010 as we can see that the ratio decreases and is in the tendency to reach the ideal situation 3.1.4. Thirdly the Debt-Equity Ratio, which is considered safe when, is in the form 2:1 but nowadays it is preferred to be in 1:1 form. A high Debt-Equity Ratio shows that the owners are employing relatively less money of their own which is all the more an alarming situation for creditors. Likewise, a low ratio provides sufficient safety margins and protection to the creditors, but at the same time the shareholders of the firm are deprived of the benefits of trading on equity. It is calculated as: Debt Equity Ratio= Long Term Debt Shareholders Fund HCLs Debt Equity ratio in 2009 and 2010 is as follows: YEAR 2009 2010 DEBT-EQUITY RATIO 9.54:1 10.8:1

HCLs ratio is in safe mode and in an ideal state that means funds are being utilized in a proper manner and creditors dont need to worry.

3.15. And the last one in Return on Investment and higher it is better for the firm and helps to judge the satisfactory level with other firms. It is mainly measures the return on funds employed by the business enterprise and judges the overall performance it is calculated as:

Return on Investment=Profit before Interest & Tax 100

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Capital Employed

HCLs Return on Investment in 2009 and 2010 is as follows: YEAR 2009 2010 RETURN ON INVESTMENT 2.25% 2.53%

This shows that HCL is not getting the return on what the fund they employed as from 2009 to 2010 it has being increased by 12.44% but later stage it will increase more because now it is investing for a better and secure future of the organization

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3.2 Analysis of Profit and loss account For the year ended 31st March,2009 and 31st March,2010
S.No 1. 2. Particulars Interest Income Interest Expenses Net Interest Income 3. 4. Commission and Discount Other Operating Income Total Operating Income 5. 6. Staff Expenses Other Operating Expenses Operating Profit Before Provision for possible Loss 7. Provision for possible losses Operating Profit 8. Non-operating Income/Loss Profit from regular activities 9. Profit/Loss from transaction of extraordinary nature Profit after inclusion of all transaction 10. Provision for Staff Bonus Provision for Income Tax Current Tax for the year Deferred Tax For Previous Year Net Profit/Loss 276,864,301 (24,278,347) 638,732,757 216,913,302 (9,445,115) 451,218,613 A.Y 2010-10 2,186,814,992 1,012,874,353 1,173,940,639 202,094,446 168,930,513 1,544965,598 186,919,870 292,010,522 1,066,035,206 PY 2009-09 1,548,657,132 632,609,264 916,047,868 150,264,074 143,586,145 1,209,898,087 157,957,084 233,766,645 818,174,358

(93,084,880) 972,950,326 5,005,256 985,999,752 (5,549,170)

(99,340,505) 718,833,853 4,519,287 743,554,208 (18,998,727)

980,450,582 89,131,871

724,555,481 65,868,681

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3.21. As from the profit and loss account we can see that there is a high growth in income before Interest expenses that is around 42% but after paying the interest income is 28.15% more than the previous year.

3.22. But as we calculate the net profit the net profit in 2009 is Rs. 451,218,613 and 2010 is Rs. 638,732,757 which brings a huge growth in the profit by a percentage of 41.55%.but as HCL pays various taxes such as:

a) Current Tax b) Wealth Tax c) Deferred Tax

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3.3Cash Flow Statement For the year ended 31st March,2009 and 31st March,2010
Previous Year Rs Particulars A. Cash flow from Operating Activities 1,764,958,356 1,480,965,056 150,264,074 50,815,249 82,913,977 (1,154,930,217) (612,862,000) (127,972,593) (177,576,476) (191,048,302) (45,470,846) 610,028,139 1. Cash Received 1.1 Interest Income 1.2 commission & discount income 1.3 Income from Foreign Exchange Transaction 1.4 Recovery of Loan written off 1.5 Other Income 2. Cash Paid 2.1 Interest Expense 2.2 Staff Expense 2.3 Office Administration Expenses 2.4 Income Tax Paid 2.5 Other Expenses Cash Flow before Changes in Working Capital (Increase)/Decrease in Current Assets (346,000,000) 498,762,587 (4,772,744,402) (134,857,710) (Increase)/Decrease in Money at Call & Short Notice . (Increase)/Decrease in Short-Term Investments (Increase)/Decrease in Loan & Advances and BP (Increase)/Decrease in Other Assets 346,000,000 (697,050,061) (5,638,672,934) (67,616,369) 2,440,224,660 2,071,386,385 202,094,446 55,861,850 110,881,979 (1,744,322,546) (1,002,376,829) (163,027,617) (215,578,404) (297,471,016) (65,868,680) 695,902,114 Current Year Rs

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Increase/(Decrease) in Current Assets 5,790,044,994 (26,376,627) 1,618,856,981 1. Increase/(Decrease) in Deposit 2. Increase/(Decrease) in Certificate of Deposit 3. Increase/(Decrease) in Short-Term Borrowing 4. Increase/(Decrease) in Other Liabilities Total Cash Flow from Operating Activities B. Cash flow from Investing Activities (94,679,000) 13,414,000 (248,462,452) 1,845,299 (493,535,705) 397,500 58,439,435 751,032 (761,829,891) 1. Purchase of Shares & Debentures 2. Proceeds from Sale of Shares & Debentures 3. Purchase of Fixed Assets 4. Proceeds from Sale of Fixed Assets 5. (Increase)/Decrease in Government Securities 6. Proceeds from Sale of Non-Banking Assets 7. Interest Income from Long-Term Investments 8. Dividend Received 9 Others Total Cash flow from Investing Activities C. Cash flow from Financing Activities 1.Increase/(Decrease) in Long Term borrowings (Bond, Debentures, etc 2. Increase/(Decrease) in Share Capital 3. Increase/(Decrease) in Share Premium 4. Share Application Money Received 5. Dividend Paid 6. Interest in Borrowing Paid 7. Increase/(Decrease) in Refinance / facilities received 312,000,000 (882,500) (144,259,524) 2,016,538 (190,990,168) 2,025,555 91,372,640 148,200 (240,569,259) 9,346,647,711 (289,665,427) 3,695,545,034

(511,512,000) (58,852,252) (23,748,730) -

(140,000,000) (126,611,886) (10,629,526) -

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from NRB (594,112,982) 13,637,129 Total Cash flow from Financing Activities D. Income / Loss from change in exchange rate in Cash and Bank Balance E. Current Year's Cash Flow from all activities F. Opening Balance of Cash & Bank Balances G. Closing Balance of Cash & Bank Balances 34,758,588 6,664,969

276,551,237 2,391,420,594 2,667,971,831

3,496,399,332 2,667,971,831 6,164,371,163

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3.3.1ANALYSIS OF CASH FLOW FOR THE YEAR 2009 AND 2010 IN DIAGRAMATIC FORM.

INTERPRETATION OF CASH FLOW

4,000,000,000 3,500,000,000 3,000,000,000 2,500,000,000 2,000,000,000 1,500,000,000 1,000,000,000 500,000,000 0 2009 2010

operating activities investing activities financing activities

3.311 As we can see from the bar diagram of 2009-10 the cash generated from the Operating Activities from various operating activities and the main reason behind this is the Premium received from policyholders, including advance receipts & Everest bank has a profit in the net amount of Rs. 3,695,545,034 3312 On the other hand HCL has also utilized a lot of its fund in the investing activities in Purchase of fixed assets, Purchases of investments, Loans disbursed and Investments in money market instruments and in liquid mutual funds and the net amount utilized in investment is Rs. 240,569,259 3.313 But in the Financial Activities the organization has earned Rs. 34,758,588 as they earned a profitable amount from Proceeds of Share Premium from issuance of share capital

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3.314 As we can see from the bar diagram of 2010, the cash is generated in the operating activities the main factor behind this the Premium received from policyholders, including advance receipts and other receipts earned by the company that is Rs. 3,695,545,034 so there is a growth in the operating activities leads to the cash generation in the Operating Activities.

3.315 In this year also the cash is utilized in the investing activities is Rs. 240569259 as mainly due to the purchase of fixed assets of Rs. 144,259,524 and government securities of rs 190,990,168. 3.316 .As HCL has goodwill in the market it has generated a Rs.312,000,000 by Proceeds from long term borrowings.

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Chapter 4 LESSONS LEARNT

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4.1 WORKING ENVIRONMENT OF HCL

4.1.1. During my summer internship in HCL I have come to know the work culture of an organization in a practical manner. The following things I want to share about the working environment and culture of HCL. The points are on the basis of my experience and personal interactions with the employees.

a) PUNCTUALITY Punctuality is undoubtedly one of the most important work related values in HCL. All employees have to report in office on time. If they are late even by a minute it is considered late and more than three late are not allowed in a month. The concept is if employee is coming to office he has to come on time. Even top bosses arrive in the office before time, this cultivates discipline in from top to bottom that if bosses who are not answerable to anyone in the office, are coming on time, all others who are answerable cannot take liberty of coming late. Punctuality in HCL is measured with a least count of 60 seconds and on most days; HCL's has achieved 100% punctuality, making it one of the most punctual organization in the world. Punctuality is not limited to just arriving to work on time, it also extends to the way work is carried out. Deadlines are made and they are catered to. In HCL, deadlines have to be adhered to. You cannot keep things pendingif work gets delayed because of you, it is not considered nice. This reflects a strong sense of internal responsibility that employees have towards their work. In HCL, once targets are set, a reverse clock counting begins, which constantly reminds everyone about the number of days left for the targets to be achieved.

b) HONESTY All employees express honesty in carrying out the work is appreciated in HCL. A lot of importance is given to transparency and HCL follows a zero tolerance to corruption policy. Every year, in the month of August, HCL observes Vigilance Awareness Week. Its purpose is to focus attention on the need for vigilance in the organization and ways to ensure corruptionfree activities. The Vigilance Awareness Week starts with all the executives and employees taking a pledge to make HCL absolutely corruption-free. Incidence where employees display
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exemplary honesty are displayed on notice board from time to time and they are also rewarded by the organization. Recognition in this way serves to reinforce the importance of honesty, and encourages others to follow the same path.

c) LEARNING AND SELF DEVELOPMENT Many of the narratives reflected that HCLs work culture emphasizes growth, both on the professional and personal front. Knowledge sessions are organized on the last Friday of every month. In these sessions presentations are made by officers on topics that they find interesting and feel would also be of interest to others, such as effective implementation of technology in different fields. HCL also promotes learning in the organization by giving a cash prize to employees who attain a higher educational degree.

d) MOTIVATION To keep the motivation level of employees high, HCL has a system of quick feedback and on the spot rewarding, cash rewards, medals, recommendation letters are some of the popular ways of rewarding employee accomplishment. Novel ways of rewarding employees are also used. For example, they are rewarded with Laptop or holiday abroad in achieving their targets or giving extra ordinary performance. Though promotions in HCL are time-based, performance does play a role. If an employee is not performing well he will not be promoted, even if he is entitled to one. HCL has a system of limited departmental examinations-this is basically for people who are at low levels in the organizations. If an employee has 3-4 years experience in the organization, he can take this exam, and on clearing it, can be promoted to higher rank. In normal course, a person at a low rank would take many years to come to the level of higher rank by means of this examination employees who are good get promoted much faster, this enhances their motivation level.

e) PERSONAL DEVELOPMENT HCL believes in inculcating in its employees a way of life that would take them on the path of self-growth. This growth is not only limited to the professional front but also in ones personal life. This is why when an employee joins HCL; he is given books on Indian mythology, which
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aims that the person will imbibe certain values that the Indian mythology preaches such as
honesty, hard work and diligence. To ensure that the message of Honesty and hard work reaches all employees- from the senior management to the workers and contractors.Because HCL has set such ambitious targets, there is definitely some level of stress among the employees. It is to take care of that stress that regular sessions on yoga and meditation are organized. In fact, all employees are encouraged to do yoga before they start their job.

f) EQUALITY Another theme that emerged from the interviews was that the management treats all employees as equal. On birthdays and other occasions all employees, including the Managing Directors are given a cheque of the same amount. Moreover, everyone, from, the Managing Director to the peon, wears the same uniform made from the same quality of cloth. Then tea or coffee or soups are free for all employees.

4.2. PRACTICAL KNOWLEDGE GAINED IN HCL

I got to learn various norms followed at a corporate house like: 1) The employees at HCL shared good inter-personnel relationships. They were always ready to help and guide each other. 2) Real exposure to the working of the corporate world helped me in comparing my theoretical input with the real work environment. 3) It helped me in improving my communication skill and presentation skills. 4) I learnt some hidden facts about how to convince customers to buy our products. 5) I also learnt about how to give different facilities to the customers so as to maintain a long term relationship with them.
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6) I learnt facts about sales strategies. 7) Personal and professional life are like two wheels of the same cart . If any one of them malfunctions then the other will get disturbed. So its really important to maintain a proper balance between these two. During the summer training I learnt how the employees maintain aproper balance between their personal and professional life. 8) Sales of the of the companys product is very important in order to keep the company functioning .I learnt a good number of techniques to motivate the sales person to increase the sales 9) Apart from the allotted projects, I also learnt a lot about Organizational Culture. Working with people from different areas taught me a lot of managerial as well as personal skills that are definitely very helpful for my future. 10) During my training I learnt how to plan the activities regarding different work and develop the techniques to solve the problem

4.3 RECOMMENDATION OR SUGGESTIONS TO OTHER STUDENTS FOR TRAINING

4.3.1. I will definitely recommend entire student for training in HCL so that they can easily learn the practical knowledge, the work culture, and the organizational culture in a better manner. The highly skilled and supportive staff will help them to learn the work and make them feel comfortable with the organizational culture.

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4.3.2. After being trained in HCL, he/she will be a polished person who can easily adopt himself/herself with the organizational culture. Being a trainee I feel proud to be a part of HCL and in a professional viewpoint this training will be beneficial for a student for future perspective.

4.3.3. To be in HCL a student can learn quality integrity, transparency; quick decision making power and the most important thing of management that is punctuality as HCL has a motto Quality with Speed which means it achieve the targets by time.

4.3.5. The ethical culture and work culture of HCL will help the trainee to learn:

a) b) c) d) e) f) g) h) i) j) k) l)

To be honest and impartial at work Not to violate rules and regulations Not to take obligations To make commitments carefully and keep them faithfully Avoid conflicts and manage the situation in best manner Always keep companys interest ahead than personal interest Highly premium integrity Punctuality To treat everyone in equal manner as HCL treats every employee in equal manner The social security and welfare facility provided adequately No communication barrier with the top officials Unnecessary layers are eliminated that is you have to do your work yourself and you will respect everybodys job m) Team spirit n) Friendly and helpful attitude for everyone 4.3.6. All this will not only make a trainee the best in professional life but a good hearted person in the personal life also.

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BIBLIOGRAPHY

Books Referred

1. Ashwathapa K., Human Resource Management (third edition), Tata Mc Graw Hill Publication Company Ltd. 2. Chhabra. , T. N. Human Resource Management, Dhanpat Rai & Co (P)Ltd. India, ninth edition. 3. Monnapa Arun., Human Resource Management, Tata Mc Graw Hill Publication Company Ltd. 4. A beginners Guide, An Introduction to HCL

Sites Visited

5. http://www.hcl.in/HCL-information 6. http://en.wikipedia.org/wiki/hcl 7. http://www.hclinfosystems.in/

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