SENSEX NIFTY India | Notes to Account > Computers - Software > Notes to Account from HCL Technologies - BSE: 532281, NSE: HCLTECH

HCL Technologies

BSE: 532281|NSE: HCLTECH|ISIN: INE860A01027|SECTOR: Computers - Software
Oct 26, 16:00
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VOLUME 46,326
Oct 26, 15:59
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VOLUME 1,611,775
« Jun 14
Notes to Accounts Year End : Jun '15
1. Segment Reporting
 Identification of segments
 The Company''s operating businesses are organized and managed according
 to the nature of products and services provided, with each segment
 representing a strategic business unit that offers different products
 and services.
 (i) Business segments
 The operations of the Company predominately relate to providing a range
 of IT and Business Process Outsourcing (BPO) services targeted at
 Global 2000 companies spread across USA, Europe and the Rest of the
 World. IT Services include software services and IT infrastructure
 management services. Within software services, the Company provides
 application development and maintenance, enterprise application, next
 generation SAAS (Software As A Service) application services and
 engineering and research and development services to several global
 customers. IT Infrastructure management services involve managing
 customers'' IT assets effectively. The Company''s ''Enterprise of the
 Future'' (EOF) framework helps customers not just run IT effectively but
 also migrate to next generation IT. EOF involves services around cloud,
 next generation data centres, business productivity services,
 integrated service management layer and an integrated application
 development & operations services. Business process outsourcing
 services include the traditional contact centre and help desk services
 and next generation services around platform BPO and BPAAS (Business
 Process As A Service) delivered through a strong global delivery model.
 The Company''s trademarked EFAAS ( Enterprise Function As A Service)
 helps customers reduce business cost rather than just the process cost
 as was the case in traditional BPO.
 The Chairman of the Company, who is the Chief Strategy Officer,
 evaluates the Company''s performance and allocates resources based on an
 analysis of various performance indicators by types of services
 provided by the Company and geographic segmentation of customers.
 Accordingly, revenue from service segments comprises the primary basis
 of segmental information set out in these financial statements.
 Secondary segmental reporting is performed on the basis of the
 geographical location of customers and assets.
 (ii) Geographic segments
 Segment revenue from customers by geographical areas is stated based on
 the geographical location of the customer and segment assets by the
 geographical location of the assets.
 The principal geographical segments are classified as America, Europe,
 India and Others. Europe comprises business operations conducted by the
 Company in the United Kingdom, Sweden, Germany, Italy, Belgium,
 Netherlands, Northern Ireland, Finland, Poland and Switzerland. Since
 services provided by the Company within these European entities are
 subject to similar risks and returns, their operating results have been
 reported as one segment, namely Europe. India has been identified as a
 separate segment. All other customers, mainly in Japan, Australia, New
 Zealand, Singapore, Malaysia, Israel, South Korea, China, Czech
 Republic, Macau, UAE, Portugal, Russia and Hong Kong are included in
 (iii) Segment accounting policies
 The accounting principles consistently used in the preparation of the
 financial statements and consistently applied to record revenue and
 expenditure in individual segments are as set out in note 1 to the
 financial statements on significant accounting policies. The accounting
 policies in relation to segment accounting are as under:
 a) Segment revenue and expenses
 Segment revenue is directly attributable to the segment and segment
 expenses have been allocated to various segments on the basis of
 specific identification. However, segment revenue does not include
 other income. Segment expenses do not include, premium amortized on
 bonds, diminution allowance in respect of current and trade
 investments, other than temporary diminution in the value of long term
 investments, and finance cost.
 b) Segment assets and liabilities
 Assets and liabilities are not identified to any reportable segments,
 since these are increasingly used interchangeably across segments and
 consequently, the management believes that it is not practicable or
 meaningful to provide segment disclosures relating to total assets and
Source : Dion Global Solutions Limited
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