FINANCE AT HCL TECHNOLOGIES

A Cursory View Of HCL Growth Over Past 5 Years

Business View

IT and Business Services ($8.27B): A comprehensive suite of end-to-end digital offerings to address
the traditional and transformational needs of large enterprises. ITBS accounts for $8.27B of FY2021-22
Revenue and 60+ Next-gen solutions and IP to its credit.

Engineering and R&D Services ($1.82B): HCL Technologies’ Engineering and R&D Services (ERS)
help clients evolve their businesses for the digital era. We partner with global enterprises to accelerate
product and platform development by leveraging the latest digital technologies to monetize product
services and create world-class customer experiences. HCLTEch has been recognized as #1
Engineering services provider by the Everest Group. To its credit, HCLTech ERS has 100+ engineering
labs accelerating time to market, 20+ Centres of Excellence (COEs) nurturing niche and emerging
technologies, 2000+ patents driving innovation for its clients and 60+ solution accelerators transforming
businesses around the globe.

Products & Platforms ($1.39B): HCL Technologies’ Products & Platforms was launched with two key
objectives: to become a credible enterprise software player, and to access global client base and sales
channels. Today, we have 6,800 global clients, of which 540 are G2000, and 775 business partners, with
a global footprint across 132+ countries. Our integrated product portfolio addresses four key markets –
Digital Transformation, AI & Intelligent Automation, Data & Analytics, and Industry Software.
HCLTech Finance Organization Structure

Chief Financial Officer

(CFO)

Financial
Financial Planning &
Business Budgeting -
Shared Centres of
Controllership Finance Cell Global
Services Excellence
(BFC) Business
(FSS) Organization
(GBO)

Treasury
Legal
Secretarial
M&A
Taxation
Investor
Relations
Internal
Audit*

Controllership

The Controller Function is accountable for the accounting operations of the company. It is responsible for
the preparation of periodic financial reports, maintenance of an adequate system of accounting records
and a comprehensive set of controls designed to mitigate risk of fraud and inaccuracies in accounts,
ensuring the accuracy of the company's reported financial results, and ensure that reported results
comply with generally accepted accounting principles or international financial reporting standards.

Responsibilities

Consolidation (1/7)

• Preparing accurate and timely quarterly and annual consolidated accounts of HCLT group under
US GAAP and IGAAP/ IND-AS
• Regulatory compliances related to financial reporting such as XBRL filings and RBI surveys.
• Controlling and maintenance of group chart of accounts for consistent and efficient reporting
• Controlling and maintenance of organization structure in SAP and BPC
• Accounting for corporate actions like Buy Back, acquisitions, Bonus, Dividends
• Maintenance of exchange rate in SAP and BPC
• Audit Committee compliance in relation to group auditors and related party transactions
• SOPs/RCMs review and automation initiatives for controllership and Group Consolidation and
reporting.

Legal Entity Financial Reporting (2/7)

• Preparing accurate and timely financials accounts for Parent and each legal entity as per
applicable GAAP and getting the same audited.
• Timely and accurate monthly book closure for each entity including doing closing activities which
includes:
• Forex revaluation and analysis etc.
 • Review of P&L, Balance Sheet and Cash Flows to ensure that accounts are accurate and there
are no material errors and profits are maintained as per transfer pricing guidelines.
• Segment allocation
• Accounting of acquisition specific entries such as upload of non-integrated trial balances,
amortization of intangibles , deferred consideration unwinding etc.
• Coordinating with local service providers to prepare the local books and ensuring they are
reconciled with SAP
• FEMA , OBR and other RBI compliances
• Inter-company transactions related to investment , share capital, loans and interest thereon.
• Inter-company cost recharges in relation to corporate guarantees and sales cost.
• Wherever separate local books are maintained , reconciliation of the same with books maintained
in SAP.
• Compliance of various surveys as per local regulatory requirements
• Finalization of actuarial assumption for leave and gratuity valuation
• Supporting consolidation process through filing of disclosures in BPC tool.
Treasury, Derivatives and ESOP accounting (3/7)
• To ensure that derivatives are accurately recorded, documented and audited as per risk
management policy of the Company and relevant guidance under US GAAP and Ind AS. Also To
ensure proper exposure management and forex gain (loss) forecasting and validation.
• Accounting for third party loans at group level (other than employees car loans).
• To ensure accurate investment accounting (Fixed deposit. Mutual funds, COD, Bonds) across all
entities as per US GAAP and Ind AS requirements and to keep proper documentation , realization
of interest on time , proper TDS accounting on interest income /capital gain and to have them
audited as per agreed time schedule
• To ensure that Options are allotted as per approved grant and documented process and related
ESOP cost are accurately recorded , accounted and audited as per US GAAP and Ind AS
requirements.
Tax accounting and transfer pricing (4/7)

• To ensure accurate direct tax accounting (current and deferred) in the books of each legal entity
based on relevant Income Tax rules. Responsible for maintenance of unit level books of account
for each STPI/SEZ units in India.
• Preparation and audit of Tax Audit and Transfer pricing report required for Return filing of Indian
entities and providing all information required for filing tax returns. Helping the Corp tax team in
tax assessments by providing various required information and implementation of direct tax
guidance. Helping the Corp tax team in tax assessments by providing various required
information and implementation of direct tax guidance.
• Preparation of ETR (effective tax rate) for tax accounting at group level and advance tax
projections based on which corporate tax team decides advance tax payments. Calculating and
passing entries for deferred tax assets and liabilities. Doing analysis of deferred tax asset created
on MAT and other DTAs whether it can be utilized in future or not.

Revenue and AR accounting (5/7)

• To ensure timely and Accurate accounting of company revenue as per applicable GAAP ( US
GAAP, I GAAP) and get the same audited by putting necessary controls and minimize revenue
leakages and under / over cost accruals.
• Discussion and concluding revenue recognition issues with auditors and give guidance on
revenue recognition to shared services team. There are different aspects to the GAAP
compliance owing to the service offerings like T&M projects, Fixed price Projects (the accounting
can be based on % of completion/planned cost vis-à-vis actual cost), outcome/output based
billing. Infra structure business contracts, multiple services are provided and thus revenue
 recognition requires through understanding of US GAAP concepts like multiple deliverables, fair
value accounting, transition accounting, leases etc.
• To review and analyze Bills Receivables and adequacy of the provisioning. This includes review
of provisions based on company policy and case by case review of specific provisions and
coordinating audit for Bills receivable. To Give guidance on sale of bills receivables and other
assets (Finance lease receivables)
• To review and ensure the correct accounting of other direct costs in line with corresponding
Revenue and GAAP. In Depth review at the contract level is required to ensure revenue - cost
matching, right classifications and ensure no under or over provisioning.
Merger and Acquisition Accounting (6/7)

•To account for all merger and acquisition including purchase price allocation of consideration paid
into goodwill , intangibles and other assets
• Mapping of acquired entities trial balance with HCL balances so that these can be uploaded in
HCL SAP
• Integration of acquired entities in SAP
GAAP Guidance on various accounting issues (7/7)

• To review various accounting issues and advice accounting based on applicable accounting
GAAP and discussion with auditors if required
• Implementation of new accounting GAAP like Revenue (ASC 606) and Lease ( ASC 842)

Financial Shared Services

Responsibilities

Order to Cash

Ensure Timely Closure of Billing as per the monthly close calendar:

• Ensure direct submission of invoices for 98% of the Invoices raised

• Billed DSO to be below 63 days at the quarter end
• Unapplied Cash to be below $30M during the quarter end
• Driving efficiencies, increase Direct Customer Contacts and Portal

Global Payroll & Employee Reimbursements

Timely and Accurate processing and Payment of Salaries Globally:

• Claims to be processed within 7 working days from date of Business approval
• Payment and reporting of statutory dues/ compliances within Due Dates
• Completeness & Accuracy of Monthly Provisions and submit Variance analysis to Controllers
• Coordinate and close the local Payroll audits Globally
Transformation

• Deployment Artificial Intelligence/BOTs in Finance Operations

• Drive Automations & process improvement initiatives, deploy interventions across Finance
processes with definite outcomes to Achieve
• Create visibility and transparency by leveraging Dashboards
• Deploy Benchmarks, Best practices to achieve Best in Class processes
• Drive Senior Leadership Independent Projects
Accounts Payable

• Payment to Vendors on Time. Enable end to end visibility of Procure to Pay cycle to stakeholders
 • Ensure there are no conflicts of interest and relevant approvals are available as per authority
matrix for all payments processed
• Ensure Accuracy of Monthly Provisions and submit Variance analysis to Controllers

Banking

• Vendor Payment accuracy – 100%

• Customer Collections Posting
• Bank Reconciliations to be completed on monthly basis for all 300+ banks
• Ensure Automated Payment Mechanism to Banks
Indirect Tax

• 100% timely payment of all Indirect Taxes Globally (GST, VAT, Withholding Tax, Sales Tax,
Softax)
• Support the Tax team in timely payment and filing of GST return, every month
Fixed Assets, Campus Bill Verification, Transport & Vendor Master

• Timely and accurate capitalization of Fixed Assets

• Complete Physical verification of assets is completed as per IGAAP and US GAAP requirements
• Accurate payment of Campus Bills after measurement verification
• Creation of all Vendor Masters within agreed SLA
• Ensure Transporters are paid timely and accurately

PF Trust

• Manage the Rs2800+ crore PF Trust and Recommend investment to CFO and Treasury
• Ensure PF settlements for Transfer-in and Transfer-outs, withdrawals are processed within 28
days
• Improve employee experience by responding to employee queries within 48 hours

Business Finance Cell

3 Pronged Role of BFC

Enablers

• Enablers to Commercial construct & Contracting prudence

• To initiate and conclude Commercial Negotiations with the Customer
• Engages in JVs, purchase of undertaking, facility creation, et al
• Participates in MVDs, Yellow pad sessions, finance DDs
• Builds pro-active business cases for a deal pursuit
Thorough Researcher
• BFC brings to you the present operational and HR realities and challenges
• Norm based pricing and norms based on existing performance
• Tracks the complete Macroeconomic changes with respect to currency, inflation, taxation, et al to
neutralize the systematic risks across 50+ countries
• Enablers of key decisions in response to changing commercial trends in the market

Risk Managers

• BFC is a Risk Manager and focuses primarily on deal wins, balancing HCL’s & Customer’s
financial and legal interests
• Benchmarks Contracts & Commercials
• Disseminates the best practices from learnings from large volume of deals
 • Focuses on positioning the intrinsic value of an opportunity to the Senior Leadership

Duties & Responsibilities

Strategic

• Develop pricing strategies which are competitive and ensures a defined margins threshold for the
company
• Continuous alignment of market driven commercial variables to company defined financial
objectives
Operational

• Champion innovative pricing models aligned to the Global Outsourcing Market trends
• Develop pricing strategies which are competitive and ensures a defined margins threshold for the
company
• Model impact of micro and macro risks inherent to global outsourcing contracts
• Serve as primary interface for pricing and analytics between the entire finance organization
(Taxation, FP&A, Administration, Revenue Assurance, etc.) to the rest of the Organization
• Direct presentation of pricing strategies before Business Leaders and other Senior Executives in
preparation of requisite financial documentation for implementation of pricing decisions
Key Interactions

• Partner with key organization departments to develop, recommend and implement pricing
strategies
• Work with World Class Sourcing Advisors to structure deal commercials
• Lead front-end commercial negotiation of contracts with Top notch lawyers and Customers on
commercial clauses

Access and Continuous Learning

• Access to S&P Capital IQ database to pre-assess the quality of Customers to enable taking long
term positions on return on investments
• Access to in house developed play books and best in class benchmarks to enable market
understanding, customer conversations and self-development
• Ensure the creation and timely upkeep of Standard Operating Procedures for pricing
development
• Manage day-to-activities, training and career development of pricing managers

Global Business Organization

Responsibilities

P&L Reporting/Forecasting for over 150+ Leaders in Sales, Delivery , Operations heads); Enabling
Finance manages cost of $ 500 M ; M&A Integration ; KPP administration and Biz Analytics dashboards

Process support role

• Transaction support
• Data collation / data integrity
• Adhoc data requirements
• Analysis of data
 • Operational queries
• Bonus processing
• Capex – Opex approvals
• Daily Order book updation

Decision Support Enabler

• Capex & Opex Controls

• Budgetary control
• Contractual controls
• Billability assurance
• Operational support
• Follow through for approvals
• Tracking & Monitoring PIP
• Establishing baselines
• Revenue recognition inputs
• Project Profit var. analysis
• Customer level GM variance
Business Partner Role

• Annual Budgeting
• Rev /P&L Reporting/ Forecasts
• New Customer Onboarding
• Revenue Assurance
• P&L Monitoring /Assurance
• Contract Monitoring / Mgt.
• PIP improvement
• Order book & Pipeline review
• Operational Metrics review
• Operational reviews support
• BR / UBR / UAR follow thro’
• FPP monitoring risk
• Budget vs. Fcst. vs. Actual
• M&A Integration
• Corporate Initiatives
Biz Analytics, Automation & Transformation (BAAT)
• SAP BW Management
• Single Version of truth
• Hub for MIS to all systems
• Supporting Automation Initiatives
• Supporting Transformation
• Supporting all Reorg
• Supporting on various Corporate Initiatives either independently or working with LOBs/CEO
office/Corp MIS
Corp MIS

• Consolidation of MIS
• Corporate reporting
• Supporting on various Corporate Initiatives either independently or working with LOBs/CEO
office/Corp MIS
 • Competitor Analysis
• Deep dive on cost analysis
• Challenge Revenue and P&L Forecast of Lob’s Business
• Many Adhoc reports

M&A Integration
• SPOC Integration
• Bring and align all finance and business stakeholders to ensure all processes are transitioned
well
• Handle any bottle necks
• Support on the GBO role until the business is integrated into the respective Lobs
• Handle Earn Out, monitor the CFO and keep an oversight , front end on any issues.
Enabling
• Working closely with all enabling functions
• Capex-Opex monitoring
• Managing a spend of $ 500M per annum
• Analytical reports
• Deep dive spend analysis
• Cost out initiatives
• Cost savings ideas and implementation

Centres of Excellence

Taxation
• Statutory compliance in 50+ countries across the globe.
• Tax Optimization
• Business enabler
• Unlocking idle assets
• Identification and mitigation of tax risks
• Litigation- Corporate Tax & Indirect Tax
• Strengthening tax compliance framework in newer geographies.
• Support to payroll/finance team on payroll taxes

M&A

• HCLTech has done major acquisitions done in last few years.

• We have diversified the portfolio from service company to product company by acquiring IBM
products as one of the biggest acquisitions in India

The work to entail:

• Identification of likely targets in consonance with overall company strategy

• Finance and legal due diligence of the target companies.
• Handling post-merger and acquisition integration responsibilities which shall include integrating
systems, processes, controls, legal compliance frameworks and accounting policies

Treasury

• Export to multiple countries provides exposure to Forex

• Bank / Cash management worldwide
• Leasing in / out of equipment.
 • Lending exposure
• Exposure in India Fixed Income Market, India and Global Macro-Economics & Interest Rate
Curve.
• Regular interaction with debt market participants.
• Managing large size funds in corporate bank or other financial institutions.

Investor Relations & Secretarial.

• IR Team acts as front face of HCLTech in dealing with the investors and shareholders.

Legal
• Provides the exposure to both Indian & Internal legal compliance framework

Internal Audit
• Being a large organization, Internal Audit plays a vital role in Company processes and
transactions.
• Aid in compliances of internal policies and procedures.
• Conduct periodic audits to assess the effectiveness and efficiency of controls developed in a
particular function.