FINANCIAL ACCOUNTING & REPORTING

ASSIGNMENT I - UNDERSTANDING OF BALANCE SHEET

HCL TECHNOLOGIES LTD

L. GABRIEL JONES
I MBA – SECTION (A)
ABOUT HCL:
•HCL Technologies is an Indian multinational information
technology (IT) services and consulting company, headquartered in Noida, Uttar
Pradesh, India. Originally a research and development division of HCL, it
emerged as an independent company in 1991 when HCL entered into the
software services business. The company has offices in 50 countries including
United Kingdom, United States, France, and Germany etc.

•It operates across sectors including aerospace and defense, automotive,

banking, capital markets, chemical and process industries, energy and utilities,
healthcare, hi-tech, industrial manufacturing, consumer goods, insurance, life
sciences, manufacturing, media and entertainment, mining and natural
resources, oil and gas, retail, telecom, and travel, transportation, logistics &
hospitality.
HCL PRODUCTS AND ITS FUNCTIONS:
HCL has a wide array of business lines, services and products.

➢ IT INFRASTRUCTURE MANAGEMENT SERVICES: These services are expected to

help the businesses become secure, agile, service-oriented, and capable of
delivering unified experiences to end customers.

➢ APPLICATION SERVICES: HCL brings in-depth knowledge and expertise across a

broad spectrum of industries. The combination of the company“s services portfolio
and the lean industrialized delivery model sets HCL apart and provides exceptional
value for their customers.

➢ BUSINESS PROCESS SERVICES: The Business Services of HCL understands the business
priorities and is helping organizations transition from operational excellence and SLAs real-time
decision making. HCL helps organizations in not only managing risks and business outcomes
effectively, but also delivers consistent and best-in-class end customer experience.
➢ CYBER SECURITY: HCL“s cyber security solutions enable an impeccable transition from a
static to a dynamic posture. Dynamic Cyber security offers application security, infrastructure
security, governance risk & compliance, access management, and business continuity.

➢ ENGINEERING & R&D SERVICES: Today, HCL partners with a majority of

the global top 100 R&D corporations. The largest and longest engineering
outsourcing partnerships in the world are with HCL Engineering & R&D
Services.

➢ DRYICE: It is a division of HCL Technologies that is focused on building AI-

powered products and platforms for the digital world. These products and
platforms leverage the world“s best AI technology, IT automation and robotic.

➢ CLOUD NATIVE SERVICES: The cloud-native services of HCL have helped

hundreds of organizations achieve a “cloud State-of-Mind”, which helps them
achieve their goals for business growth, greater resilience and faster
innovation.
HCL SUBSIDIARIES FOR 2020-21:
1. HCL Comnet Systems & Services Limited 21. HCL Technologies Solution GmbH
2. HCL Bermuda Limited 22. Axon Solutions Limited
3. HCL Technologies (Shanghai) Ltd. 23. HCL Technologies Malaysia Sdn.
4. HCL Singapore Pte. Limited 24. HCL Axon Solutions (Shanghai) Co. Limited
5. HCL Training & Staffing Services Private Limited 25. HCL Technologies (Proprietary) Ltd
6. HCL Great Britain Limited 26. HCL Argentina s.a.
7. HCL Australia Services Pty. Limited 27. HCL Mexico S. de R.L.
8. HCL (New Zealand) Limited 28. HCL Technologies Romania s.r.l.
9. HCL Hong Kong SAR Limited 29. HCL Hungary Kft
10. HCL Japan Limited 30. HCL Latin America Holding LLC
11. HCL America Inc. 31. HCL (Brazil) Technologia da informacao EIRELI
12. HCL Technologies Austria GmbH 32. HCL Technologies Denmark Apps
13. HCL Software Products Limited 33. HCL Technologies Norway AS
14. HCL Technologies (Taiwan) Ltd. 34. PT. HCL Technologies Indonesia Limited
15. HCL Technologies Lithuania UAB 35. HCL Technologies Philippines Inc.
16. HCL Poland Sp.z.o.o 36. HCL Technologies South Africa (Proprietary) Limited
17. HCL EAS Limited 37. HCL Arabia LLC
18. HCL Insurance BPO Services Ltd 38. HCL Technologies France SAS
19. Axon Group Limited 39. Filial Espanola De HCL Technologies S.L
20. HCL Canada Inc. 40. Anzospan Investments Proprietary Limited
41. HCL Investments (UK) Limited 63. HCL Muscat Technologies L.L.C.
42. HCL America Solutions Inc. 64. Point To Point Limited
43. HCL Technologies Chile Spa 65. Point to Point Products Ltd.
44. HCL Technologies UK Limited 66. Statestreet HCL Holding UK Ltd.
45. HCL Technologies B.V. 67. Statestreet HCL Services (India) Private
46. HCL (Ireland) Information Systems Limited Limited
47. HCL Technologies Germany Gmbh 68. Statestreet HCL Services (Philippines) Inc.
48. HCL Technologies Belgium BVBA 69. Geometric Europe GmbH
49. HCL Technologies Sweden AB 70. HCL Asia Pacific Pte Ltd.
50. HCL Technologies Finland Oy s.r.o 71. Geometric China, Inc.
51. HCL Technologies Italy S.P.A 72. Geometric Americas, Inc.
52. HCL Technologies Columbia S.A.S 73. Geometric SRL
53. HCL Technologies Middle East FZ-LLC 74. Butler America Aerospace LLC
54. HCL Istanbul Bilisim Teknolojileri Ltd. 75. HCL Software Limited (Formely HCL
55. HCL Technologies Greece Single Member P.C Foundation)
56. HCL Technologies S.A. 76. Urban Fulfillment Services LLC
57. HCL Technologies Beijing Co. Ltd. 77. Datawave Ltd.
58. HCL Technologies Luxembourg 78. HCL Technologies Corporate Services Limited
59. HCL Technologies Egypt Limited English 79. C3i Support Services Private Ltd.
60. HCL Technologies Estonia OÜ 80. Telerx Marketing, Inc.
81. C3i Europe Eood
82. C3i (UK) Limited
83. C3i Japan GK FS 2020-21
84. C3i Services & Technologies Ltd.
85. HCL Technologies SEP Holdings Inc.
86. Actian Corporation Consolidated
87. Actian Australia Pty. Limited
88. Actian Europe Limited
89. Actian France
90. Actian Germany GmbH
91. Actian International, Inc.
92. Actian Netherlands B.V.
93. Actian Technology Private Ltd.
94. Pervasive Software, Inc.
95. Versant GmbH
96. Versant India Private Limited
97. Versant Software LLC
98. HCL Technologies Vietnam Company Ltd.
99. HCL Guatemala, Sociedad Anonima
100. Sankalp Semiconductor Private Ltd.
101. Sankguj Semiconductor Private Ltd.
102. Sankalp Semiconductor Inc.
103. Sankalp USA Inc.
104. Sankalp Semiconductor GmbH
105. Sankalp Semiconductor SDN. BHD.
106. H C L Technologies Lanka Ltd.
107. HCL Technologies Bulgaria EOOD
108. HCL Technologies Trinidad and Tobago Ltd.
109. HCL Technologies Azerbaijan Limited Liability
Company
110. HCL Vietnam Company Limited
111. DWS Limited
112. DWS (New Zealand) Ltd.
113. Phoenix IT & T Consulting Pty Ltd.
114. Wallis Nominees (Computing) Pty Ltd.
115. DWS (NSW) Pty Ltd.
116. Symplicit Pty Ltd.
117. Projects Assured Pty Ltd.
118. DWS Product Solutions Pty Ltd.
119. Graeme V Jones & Associates Pty Ltd.
120. Strategic Data Management Pty Ltd.
121. SDM Sales Pty Ltd.
122. PowerTeam, LLC
These are all the subsidiary companies of HCL
Ltd. It mainly focuses on the technology, banking.
8 Balance sheet as on March’21
Standalone Consolidated
ASSETS RS(in Cr) ASSETS RS(in Cr)
NON-CURRENT ASSETS NON-CURRENT ASSETS
Tangible Assets 4,502.00 Tangible Assets 8,052.00
Intangible Assets 16,403.00 Intangible Assets 11,901.00
Capital Work-In-Progress 245 Capital Work-In-Progress 312
Fixed Assets 21,150.00 Fixed Assets 20,265.00
Non-Current Investments 5,041.00 Non-Current Investments 89
Deferred Tax Assets [Net] 668 Deferred Tax Assets [Net] 1,181.00
Other Non-Current Assets 788 Other Non-Current Assets 4,416.00
Total Non-Current Assets 27,647.00 Total Non-Current Assets 43,143.00
CURRENT ASSETS CURRENT ASSETS
Current Investments 6,605.00 Current Investments 6,773.00
Inventories 18 Inventories 94
Account Receivables 5,217.00 Account Receivables 13,663.00
Cash And Cash Equivalents 5,056.00 Cash And Cash Equivalents 8,888.00
Short Term Loans And Short Term Loans And
4,841.00 4,841.00
Advances Advances
OtherCurrentAssets 5,977.00 OtherCurrentAssets 8,792.00
Total Current Assets 27,714.00 Total Current Assets 43,051.00
Total Assets 55,361.00 Total Assets 86,194.00
9
Standalone Consolidated

EQUITIES AND LIABILITIES RS(in Cr) EQUITIES AND LIABILITIES RS(in Cr)
SHAREHOLDER'S FUNDS SHAREHOLDER'S FUNDS
Equity Share Capital 543
Equity Share Capital 543
Total Share Capital 543
Total Share Capital 543
Reserves and Surplus 59,370.00
Reserves and Surplus 43,010.00
Total Reserves and Surplus 59,370.00
Total Reserves and Surplus 43,010.00 Total Shareholders Funds 59,913.00
Total Shareholders Funds 43,553.00 Minority Interest 169
NON-CURRENT LIABILITIES NON-CURRENT LIABILITIES
Long Term Borrowings 207 Long Term Borrowings 3,828.00
Other Long Term Liabilities 716 Deferred Tax Liabilities [Net] 147
Long Term Provisions 866 Other Long Term Liabilities 3,421.00
Total Non-Current Liabilities 1,789.00 Long Term Provisions 1,333.00
Total Non-Current
CURRENT LIABILITIES 8,729.00
Liabilities
Accounts Payables 2,707.00 CURRENT LIABILITIES
Other Current Liabilities 7,085.00 Accounts Payables 1,726.00
Other Current Liabilities 14,694.00
Short Term Provisions 227
Short Term Provisions 963
Total Current Liabilities 10,019.00
Total Current Liabilities 17,383.00
Total Capital And Liabilities 55,361.00
Total Capital And Liabilities 86,194.00
DESCRIPTION OF ITEMS:
10

ASSET:
An asset is a resource with economic value that an individual, corporation, or country
owns or controls with the expectation that it will provide a future benefit.

TANGIBLE ASSET:
Tangible assets are physical; they include cash, inventory, vehicles, equipment,
buildings and investments.

INTANGIBLE ASSET:
An intangible asset is an asset that is not physical in nature. Goodwill, brand
recognition and intellectual property, such as patents, trademarks, and copyrights,
are all intangible assets. Intangible assets exist in opposition to tangible assets, which
include land, vehicles, equipment, and inventory.

CAPITAL WORK-IN PROGRESS:

CWIP includes building under construction, machinery under assembly etc., at the
time of preparation of balance sheet.

FIXED ASSET:
A fixed asset is a long-term tangible piece of property or equipment that a firm owns
and uses in its operations to generate income. Fixed assets are not expected to be
consumed or converted into cash within a year.
DEFERRED TAX ASSETS:
Deferred tax assets are items that may be used for tax relief purposes in the future.
Usually, it means that your business has overpaid tax or has paid tax in advance, so
it can expect to recoup that money later.

OTHER NONCURRENT ASSETS:

The asset which are not current assets or fixed assets or investment asset shall be
classified under the head ‘other non current assets

CURRENT INVESTMENTS:
Current investments are those financial instruments (debt or equity investments)
which can be easily converted into cash in the next three to twelve months.

INVENTORIES:
Inventory is the raw materials used to produce goods as well as the goods available for
sale. The three types of inventory include raw materials, work-in-progress and
finished goods

Account Receivables:
Accounts receivables are defined as the amount owed to a business by its
customers following the sale of goods or services on credit.
CASH AND CASH EQUIVALENTS:
Cash and cash equivalents refers to the line item on the balance sheet that reports the
value of a company's assets that are cash or can be converted into cash immediately.
Cash equivalents include bank accounts and marketable securities such as
commercial paper and short-term government bonds.

SHORT TERM LOANS:

Advances on asset side are those advances which are paid for now but realize at future
date. So it is an assets to the company. And Loan on assets side ate those loans which
are given by the company and to be recovered in future with interest.

OTHER CURRENT ASSETS:

OCA is a category of things of value that a company owns, benefits from, or uses to
generate income that can be converted into cash within one business cycle. They are
referred to as “other” because they are uncommon or insignificant, unlike
typical current asset items such as cash, securities, accounts
receivable, inventory, and prepaid expenses.

LIABILITIES:
A liability is something a person or company owes, usually a sum of money. Liabilities
are settled over time through the transfer of economic benefits including money,
goods, or services.
EQUITY SHARE CAPITAL:
Equity share capital represents the money contributed by owners and investors towards
the capital of the company.

RESERVES AND SURPLUS:

Reserves are the funds earmarked for a specific purpose, which the company intends to
use in future. The surplus is where the profits of the company reside. This is one of the
points where the balance sheet and the P&L interact. Dividends are paid out of the
surplus.

LONG TERM BORROWINGS:

Long Term borrowings is any amount of outstanding debt of a company that has a
maturity of 12 months or long run.

DEFERRED TAX LIABILITY:

Deferred tax liability is recorded in the books of a company so that its shareholders are
aware of all the underlining liabilities a company is bearing at the end of a financial year,
and also for auditing purposes.

TRADE PAYABLES:
Trade payables are obligations to pay for goods or services that have been acquired from
suppliers in the ordinary course of business. Trade payables are classified as current
liabilities if payment is due within one year or less. If not, they are presented as non-
current liabilities.
OTHER CURRENT LIABILITIES:
Other current liabilities, in financial accounting, are categories of short-term debt that
are lumped together on the liabilities side of the balance sheet.

SHORT TERM PROVISIONS:

Short term provisions are the provisions for liabilities that are likely to be paid within
12 months from the date of the balance sheet or within the period of the operating
cycle, whichever is longer.
STANDALONE VS CONSOLIDATED BALANCE SHEET COMPARISON:

STAND ALONE CONSOLIDATED

Rs(in cr) Rs(in cr)
ASSETS 55,361.00 86,194.00

EQUITIES AND LIABILITIES 55,361.00 86,194.00

ASSETS EQUITIES AND LIABILITIES

86,194.00 86,194.00
1,00,000.00 1,00,000.00

80,000.00 80,000.00
55,361.00 55,361.00
60,000.00 ASSETS 60,000.00 EQUITIES AND
LIABILITIES
40,000.00 40,000.00

20,000.00 20,000.00

0.00 0.00
Standalone Consolidated Standalone Consolidated
16

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