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Business Environment On HCL Technologies

About HCL Technologies: HCL Technologies is one of the leading names in the field of Information Technology. This company is proud to have been one among the most preferred places to work by Indian Employees. Currently it is being headed by Mr. Shiv Nadar, the Chairman of HCL Technologies.

Board Composition:
Particulars Non-Executive Directors Executive Directors Total Independent Directors Non-Independent Directors Total No. of Directors 7 2 9 5 4 9 % of Total Directors 78 22 100 56 44 100

Name of Director Mr. Shiv Nadar Mr. Vineet Nayar Mr. T.S.R. Subramanian Mr. Subroto Bhattacharya Mr. Ajai Chowdhry Ms. Robin Abrams Mr. Amal Ganguli Mr. P. C. Sen Mr. R. Srinivasan (As on June, 2011)

Position in the Company Chairman & Chief Strategy Officer Vice Chairman, CEO and Whole-time Director Independent and Non Executive Director Independent and Non Executive Director Independent and Non Executive Director Independent and Non Executive Director Independent and Non Executive Director Independent and Non Executive Director Independent and Non Executive Director

Independent Director" means a director who is a person who: 1. has not been employed by the Company or its Related Parties in the past five years; 2. is not, and is not affiliated with a company that is an advisor or consultant to the Company or its Related Parties; 3. is not affiliated with a significant customer or supplier of the Company or its Related Parties; 4. has no personal service contracts with the Company, its Related Parties, or its senior management; 5. is not affiliated with a non-profit organization that receives significant funding from the Company or its Related Parties; 6. is not employed as an executive of another company where any of the Company's executives serve on that company's board of directors; 7. is not a member of the immediate family of an individual who is, or has been during the past five years, employed by the Company or its Related Parties as an executive officer; 8. is not, nor in the past five years has been, affiliated with or employed by a present or former auditor of the Company or of a Related Party Out of two Executive Directors, one is a Promoter Director who is also the Managing Director of the Company and is designated as Chairman and Chief Strategy Officer of the Company and the other is Vice Chairman, Chief Executive Officer and Whole-time Director of the Company The board composition clearly shows that 7 out of 9 BODs are independent directors which mean 78% of the board composition is of the Independent Directors. They also clearly state that none of the directors in the company are related to each other in any way. This shows high level of Corporate Governance in the company which is seen to be a good indicator of Companys overall conduct in the corporate scenario. The Independent Directors had a nil share holding in the company as on 30 June, 2011, Whereas Mr. Shiv Nadar, As on June 30, 2011, held 184 equity shares of ` 2/each fully paid-up in his own name. Mr. Vineet Nayar, As on June 30, 2011, his shareholding in the Company was 17,00,000 which is held in the name of the family trust.

Brief Profile of the Board Members 1. Mr. Shiv Nadar Mr. Shiv Nadar, aged 66 years, is an Electrical Engineer from Coimbatore. He established HCL as a startup in1976. He was conferred the Padma Bhushan Award the third highest civilian honor conferred by the President of India in January 2008, in recognition of not just his contribution to trade & industry in India but also his deep commitment to public good. 2. Mr. Vineet Nayar He has a Bachelor's degree in Technology and a Masters degree in Business Administration. He joined HCL in 1985. In August 2008, he was designated as CEO and Whole-time Director of the Company and in 2011, he has been designated as the Vice Chairman, CEO and Whole-time Director of the Company. 3. Mr. T.S.R. Subramaniam He is an Ex-Cabinet Secretary to the Government of India. He is currently serving as the Chairman of the Audit Committee, Risk Management Committee and the Shareholders Committee of the Company. He is also a member of the Employees Stock Option Allotment Committee and Nominations Committee of the Company. 4. Mr. Subroto Bhattacharya He is a member of the Audit Committee, Shareholders' Committee, Employee Stock Options Allotment Committee, Finance Committee and Risk Management Committee of the Company. 5. Mr. Ajai Chowdhry Mr. Ajai Chowdhry is the Chairman & Whole- time Director of HCL Infosystems. 6. Ms. Robin Abrams She is the Chairperson of the Compensation Committee and member of the Audit Committee and Risk Management Committee of the Board of Directors of the Company. 7. Mr. Amal Ganguly He is the chairman of the Finance Committee. He is also a member of the Audit Committee and Risk Management Committee of the Company. 8. Mr. P.C. Sen He is the member of the Compensation Committee of the Company.

9. Mr. R. Srinivasan Mr. R. Srinivasan is the member of the Finance Committee of the Company. Share Prices of the Company
Year Opening Price Closing Price
900 800 700 600 500 400 300 200 100 0 2009 2010 2011 Closing Price Opening Price

2009 116.9 371.35

2010 372 456.05

2011 456.05 388.25

The graph shows promising returns on the share prices in the next year as well showing companys good growth.

The total turnover of the company is as follows:

Year Turn Over 2009 12961671269 2010 21412275861 2011 10969216793

(in billions) The amount stated here is in Rupees (INR). The reference time period is taken to be 2009-2011. Here as it can be seen the share prices of HCL were continuously rated higher than the preceding year. The share of the company is seen giving good returns year by year. This is due to fact that the company is performing some of the best corporate governance practices in its functioning which has become very evident in the performance in share market as well. This clearly shows that investors have trust on the Company and are relying on it.

Corporate Social Responsibility (CSR) at HCL HCL is one of the companies which are working aggressively towards CSR. It has made its presence felt in many areas of the society which requires due attention. The contribution, Company has made towards CSR are as follows: 1. 2. 3. 4. 5. 6. 7. 8. 9. Children welfare Community Welfare Towards Education Contributing to Environment For Healthcare Towards Physically Challenged Providing Vocational Training Providing clean Water For Promotion of Classical Arts

Three main CSR activities are: 1. Education 2. Community welfare 3. Children welfare Other Initiatives by HCL 1. Green at HCL HCL has joined the national movement of businesses and organizations that are leading the fight against global warming by aligning with, one of country's leading carbon offset organization. The result was that HCL's Global Customer Meet 'Unstructure', organized in November 2008, was a carbon-neutral event as they compensated for the emissions by purchasing carbon credits, which were split equally into carbon offsets of Reforestation, Energy Efficiency and Renewable Energy. Advancing further into their Go Green initiative, the event was taken as an incentive to plant more than 650 oak trees in 2.8 acres of land in Champawat district of Uttarakhand. The scarves presented to the guests at the GCM were made from "Peace silk", which is called so because it is drawn only after the oak silk worm moth has emerged, with no harm befalling the silk worm itself. The employees at HCL walk hand in hand with in making the organization green friendly by organizing plantation drives across the country, and working with organizations like Green Peace to create awareness on green issues. It is a conscious decision taken by the employees to reduce

paper usage, save energy and cost by switching off lights when not required and print only when necessary, as an effort to drive the green movement within the organization. 2. Employee volunteer programs The Community Service Council at HCL Technologies (CSR) is an initiative driven entirely by employees and completely supported by the management. With over 500 events organized in the last one year, the council is by far the most active of councils in the organization. The aim of the CSC council is to improve, guide and inspire the underprivileged people, through various assistance programs, and by working with many NGOs and charitable organization

HCL School Intervention Program:

Right to good education is the basic right of every child and SIP (School Intervention Program) is an effort to give life to this belief. Holistic in its scope, over 100 volunteers reach out to 800 students from different schools to conduct classes in basic subjects like English, Mathematics and computers, and carry out health & hygiene and environment awareness programs. Other than this, personality development programs, summer workshops and vocational trainings courses are also organized for these students.

Teach @ Office: HCL, social responsibility begins at office. Through this initiative basic awareness, knowledge and skills were imparted to over 250 guards posted at the various HCL facilities with the aim of improving their quality of life, increase their awareness levels and empower them to work better. Child Rescue and Rehabilitation program: The program is designed to provide voluntary help to rescue and rehabilitate children who are affected by various forms of abuse and are in need of rehabilitative support. In the Bangalore initiative, for example, over 170 employees work closely with the Ministry of women and child development, NGOs like Bosco, Apsa & Child Right Trust and the Bangalore police to conduct field visits and organize awareness programs. Till now over 60 children have been rehabilitated. Fund Raising Events and collection drive: HCL works with more than 10 NGOs and Self Help Groups like Goonj (a resource mobilization initiative for the underprivileged), Scope plus (working with destitute women), Srijan (working for the welfare of the Tihar Jail inmates) and Petals (working with specially-abled people) to promote causes we strongly believe in, and help these organizations raise funds by organizing bazaars and collection drives at various HCL facilities. In the last one year, employees have raised nearly Rs. 1.25 lakh to support these causes. Encouraging the specially-abled: The initiative is aimed at helping the specially-abled individuals to earn their livelihood and lead a normal life. As part of the program, couple of kiosks have already being set up at our facilities in Noida and Gurgaon, which will be followed by similar set ups across the country.

The Company has become more sensitive about the impact of its business on society and the environment, and understands the concerns of all its key stakeholders. The Company defines

Corporate Social Responsibility (CSR) as developing socially responsible products and services for customers, ensuring a low carbon footprint through Green data centers and following a robust environmental policy, engaging and empowering employees to become agents of social change, and making a commitment with significant investments into the community around it. An essential component of the Companys CSR initiatives is to care for the community around it, and education and health have been identified as the primary objectives in the Companys community development programs. Inspiring the lives of the underprivileged, the Company facilitates programs and gives direct assistance and resources to individuals, families and other charitable organizations. The Company endeavors to make a positive contribution to society supporting a wide range of socio-economic, educational and health initiatives, and almost all of these projects and programs are driven by active participation from the employees of the Company.