Company Overview
 
 HCL Technologies Limited (hereinafter referred to as ''HCL'' or the
 ''Company'') is primarily engaged in providing a range of software
 services, business process outsourcing and infrastructure services. The
 Company was incorporated in India in November 1991. The Company
 leverages an extensive offshore infrastructure and its global network
 of offices in various countries and professionals to deliver solutions
 across select verticals including Financial Services, Manufacturing
 (Automotive, Aerospace, Hi-tech and Semi conductor), Telecom, Retail &
 CPG , Media publishing & entertainment, Public services, Energy &
 utility, Healthcare, Travel, Transport and Logistics.
 
 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 serves different markets. The analysis of geographical segments is
 based on the areas in which major divisions of the Company operate.
 
 (i) Business Segments
 
 The operations of the Company predominately relate to providing
 software services, infrastructure services including sale of networking
 equipment and business processing outsourcing services, which are in
 the nature of customer contact centres and technical help desks. 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 service 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.
 
 Revenue in relation to service segments is categorized based on items
 that are individually identifiable to that segment, while expenditure
 is categorized in relation to the associated turnover of the segment.
 Assets and liabilities are also identified to service segments.
 
 (ii) Geographic Segments
 
 Segment revenue from customers by geographical area based on
 geographical location of the customer and segment assets are by
 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
 others.
 
 (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 assets and liabilities
 
 All segment assets and liabilities have been allocated to the various
 segments on the basis of specific identification.
 
 Segment assets consist principally of allocable fixed assets, trade
 receivables, loans and advances and unbilled receivables. Segment
 assets do not include unallocated corporate assets, treasury assets,
 net deferred tax assets, advance taxes and Minimum Alternate Tax.
 
 Segment liabilities include trade payable, other liabilities. Segment
 liabilities do not include share capital, reserves, borrowings and
 provision for taxes.
 
 b) 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, charge taken for stock options issued to employees,
 corporate expenses and finance cost.
 
 2. Related party transactions
 
 a) Related parties where control exists
 
 Subsidiaries
 
 HCL Comnet Systems & Services Limited
 
 HCL Bermuda Limited
 
 HCL Technologies (Shanghai) Limited
 
 HCL GmbH
 
 HCL Eagle Limited (Incorporated w.e.f 14 September 2011)
 
 HCL Great Britain Limited
 
 HCL (Netherlands) BV
 
 HCL Belgium NV
 
 HCL Sweden AB
 
 HCL Italy SLR
 
 HCL Australia Services Pty. Limited
 
 HCL Singapore Pte. Limited
 
 HCL (New Zealand) Limited
 
 HCL Hong Kong SAR Limited
 
 HCL Japan Limited
 
 HCL Comnet Limited
 
 HCL America Inc.
 
 HCL Holdings GmbH
 
 HCL Global Processing Services Limited
 
 HCL BPO Services (NI) Limited
 
 HCL (Malaysia) Sdn. Bhd.
 
 HCL EAI Services Limited
 
 HCL Poland sp. z o.o
 
 HCL EAS Limited
 
 HCL Insurance BPO Services Limited
 
 HCL Expense Management Services Inc.
 
 Axon Group Limited
 
 Axon Solutions (Canada) Inc.
 
 Bywater Limited
 
 Axon Solutions Schweiz Gmbh
 
 Axon Solutions Pty. Limited
 
 Axon Solutions Inc.
 
 Axon Acquisition Company, Inc.
 
 Axon Solutions Limited
 
 Axon Solutions Sdn. Bhd.
 
 Axon Solutions Singapore Pte. Limited
 
 Axon Solutions (Shanghai) Co. Limited
 
 HCL Axon (Proprietary) Limited
 
 JSPC- I Solutions Sdn. Bhd.
 
 JSP Consulting Sdn. Bhd.
 
 HCL Technologies Canada Inc.
 
 HCL Argentina s.a.
 
 HCL Mexico S. de R.L.
 
 HCL Technologies Romania s.r.l.
 
 HCL Hungary Limited
 
 HCL Latin America Holding LLC
 
 HCL (Brazil) Technologia da informacao Ltda.
 
 HCL Technologies Denmark Apps
 
 HCL Technologies Norway AS
 
 PT. HCL Technologies Indonesia Limited
 
 HCL Technologies Philippines Inc.
 
 HCL Technologies South Africa (Proprietary) Limited
 
 HCL Arabia LLC
 
 HCL Technologies France (Incorporated w.e.f 7 March 2011)
 
 Filial Espanola De HCL Technologies S.L. (Spain)
 
 Anzospan Investments Pty Limited
 
 HCL Investments (UK) Limited (Incorporated w.e.f 9 November 2011)
 
 Employee benefit trusts
 
 HCL Technologies Limited Employees Trust Axon Group Plc Employee
 Benefit Trust No. 3 Axon Group Plc Employee Benefit Trust No. 4
 
 Jointly controlled entities
 
 NEC HCL System Technologies Limited, India Axon Puerto Rico Inc. -
 through subsidiary
 
 Associates
 
 State street Holding UK Limited-through subsidiary Statestreet Services
 (India) Private Limited- through subsidiary
 
 b) Related parties with whom transactions have taken place during the
 year
 
 Subsidiaries
 
 HCL Comnet Systems & Services Limited
 
 HCL Bermuda Limited
 
 HCL Technologies (Shanghai) Limited
 
 HCL GmbH
 
 HCL Eagle Limited
 
 HCL Great Britain Limited
 
 HCL (Netherlands) BV
 
 HCL Belgium NV
 
 HCL Sweden AB
 
 HCL Italy SLR
 
 HCL Australia Services Pty. Limited
 
 DSI Financial Solutions Pte. Limited (Ceased to exist w.e.f. 11 April
 2012)
 
 HCL Singapore Pte. Limited
 
 HCL (New Zealand) Limited
 
 HCL Hong Kong SAR Limited
 
 HCL Japan Limited
 
 HCL Comnet Limited
 
 HCL America Inc.
 
 HCL Global Processing Services Limited
 
 HCL BPO Services (NI) Limited
 
 HCL (Malaysia) Sdn. Bhd.
 
 HCL EAI Services Limited
 
 HCL Poland sp. z o.o
 
 Capital Stream, Inc. (Merged with HCL America w.e.f.  1 January 2012)
 
 HCL EAS Limited
 
 HCL Insurance BPO Services Limited
 
 HCL Jones Technologies LLC (Liquidated w.e.f 29 June 2012)
 
 HCL Expense Management Services Inc.
 
 Axon Solutions (Canada) Inc.
 
 Axon Solutions Schweiz Gmbh
 
 Axon Solutions Pty. Limited
 
 Axon Solutions Inc.
 
 Axon Solutions Limited
 
 Axon Solutions Sdn. Bhd.
 
 Axon Solutions Singapore Pte. Limited
 
 Axon Solutions (Shanghai) Co. Limited
 
 HCL Axon (Proprietary) Limited
 
 HCL Technologies Canada Inc.
 
 HCL Argentina s.a.
 
 HCL Mexico S. de R.L.
 
 HCL Hungary Limited
 
 HCL (Brazil) Technologia da informacao Ltda.
 
 HCL Technologies Denmark Apps
 
 HCL Technologies Norway AS
 
 PT. HCL Technologies Indonesia Limited
 
 HCL Technologies Philippines Inc.
 
 HCL Technologies South Africa (Proprietary) Limited
 
 HCL Arabia LLC
 
 HCL Technologies France
 
 Filial Espanola De HCL Technologies S.L. (Spain)
 
 Jointly controlled entities
 
 NEC HCL System Technologies Limited, India
 
 Associates
 
 Statestreet HCL Services (India) Private Limited (incorporated w.e.f 6
 January 2012)
 
 Others (Significant influence)
 
 Slocum investments (Delhi) Private Limited
 
 HCL Corporation Private Limited [Formerly Guddu
 
 Investments (Pondi) Private Limited]
 
 HCL Infosystems Limited
 
 HCL Infinet Limited (Ceased to be related party w.e.f.
 
 10 November 2011)
 
 HCL Holding Private Limited
 
 HCL Insys Pte Ltd., Singapore
 
 Digilife Distribution and Marketing Services Limited.
 
 (Formerly HCL Security Limited)
 
 c) Key Management Personnel
 
 Shiv Nadar, Chairman and Chief Strategy Officer Vineet Nayar, Vice
 Chairman and CEO
 
 3. Commitments and Contingent liabilities
 
                                       As at              As at
                                     30 June 2012        30 June 2011
 
 i) Capital and other commitments
 
 a) Capital commitments
 
 Estimated amount of unexecuted
 capital contracts (net of advances)     528.43             391.33
 
 b) Outstanding letter of credit           9.83                 -
 
                                         538.26             391.33
 
 ii) Contingent Liabilities
 
 a) Others                                 4.29               2.30
 
                                           4.29               2.30
 
 b) Guarantees have been given by the Company on behalf of various
 subsidiaries against credit facilities, financial assistance and office
 premises taken on lease amounting to Rs. 3,087.56 crores (Previous year Rs.
 2,283.36 crores).  These guarantees have been given in the normal
 course of the Company''s operations and are not expected to result in
 any loss to the Company on the basis of the beneficiaries fulfilling
 their ordinary commercial obligations.
 
 c) Bank guarantees of Rs. 14.25 crores (Previous year Rs. 24.39 crores).
 These guarantees have been given in the normal course of the Company''s
 operations and are not expected to result in any loss to the Company,
 on the basis of the Company fulfilling its ordinary commercial
 obligations.
 
 The amounts shown in the items above represent best possible estimates
 arrived at on the basis of available information. The uncertainties and
 possible reimbursements are dependent on the outcome of the different
 legal processes which have been invoked by the Company or the claimants
 as the case may be and therefore cannot be predicted accurately. The
 Company engages reputed professional advisors to protect its interest
 and has been advised that it has strong legal positions against such
 disputes.
 
 iii) The Company has a comprehensive system of maintenance of
 information and documents as required by the transfer pricing
 legislation under sections 92-92F of the Income Tax Act, 1961. Since
 the law requires existence of such information and documentation to be
 contemporaneous in nature, the Company appoints independent consultants
 for conducting a Transfer Pricing Study to determine whether the
 transactions with associated enterprises are undertaken, during the
 financial year, on an arms length basis. Adjustments, if any, arising
 from the transfer pricing study in the respective jurisdictions are
 accounted for as and when the study is completed for the current
 financial year. However the management is of the opinion that its
 international transactions are at arms'' length so that the aforesaid
 legislation will not have any impact on the financial statements.
 
 4. Derivative Financial Instruments
 
 The Company is exposed to foreign currency fluctuations on foreign
 currency assets / liabilities, forecast cash flows denominated in
 foreign currency. The use of derivatives to hedge foreign currency
 forecast cash flows is governed by the Company''s strategy, which
 provide principles on the use of such forward contracts and currency
 options consistent with the Company''s Risk Management Policy. The
 counter parties in these derivative instruments are banks and the
 Company considers the risks of non-performance by the counterparty as
 non-material. A majority of the forward foreign exchange/option
 contracts mature within one to twelve months and the forecast
 transactions are expected to occur during the same period. The Company
 does not use forward contracts and currency options for speculative
 purposes.
 
 As of the balance sheet date, the Company''s net foreign currency
 exposure that is not hedged is Rs. 1,758.84 crores (Previous year Rs.
 1,399.20 crores).
 
 Notes:
 
 1.  Balance as at year end is inclusive of deferred tax assets of Rs.
 93.94 crores (Previous year deferred tax liability of Rs. 4.27 crores).
 
 2.  At 30 June 2012, the estimated net amount of existing loss that is
 expected to be reclassified into the income statement within the next
 twelve months is Rs. 211.86 crores (Previous year gain of Rs. 23.51
 crores).
 
 5. Employee Benefit Plans
 
 The Company has calculated the various benefits provided to employees
 as under:
 
 A.  Defined Contribution Plans and State Plans
 
 Superannuation Fund
 
 Employer''s contribution to Employees'' State Insurance
 
 Employer''s contribution to Employees'' Pension Scheme.
 
 B.  Defined Benefit Plans
 
 a) Gratuity
 
 b) Employers Contribution to Provident Fund
 
 Gratuity
 
 The Company has a unfunded defined benefit gratuity plan. Every
 employee who has completed five years or more of service gets a
 gratuity on departure at 15 days salary (last drawn salary) for each
 completed year of service.
 
 Employer''s Contribution to Provident Fund
 
 The guidance note on implementing AS-15, Employee Benefits (revised
 2005) issued by Accounting Standard board (ASB) states that benefits
 involving employer established provident funds, which require interest
 shortfalls to be recompensed are to be considered as defined benefit
 plans. The Actuarial Society of India has issued the final guidance for
 measurement of provident fund liabilities during the current year. The
 actuary has accordingly provided a valuation and based on the
 assumption mentioned below there is no shortfall as at 30 June 2012.
 
 6. During the previous year, a scheme of Amalgamation (Scheme)
 under sections 391 to 394 of the Companies Act, 1956 for amalgamation
 without issue of shares of HCL Technopark Limited, a wholly owned
 subsidiary (Transferor Company), held directly, with the Company has
 been approved by the Hon''ble High Court of Delhi on 16 August 2010 and
 is effective from 1 April 2009. The Transferor Company was engaged in
 the business of a developer of facilities for the IT industry. The
 amalgamation is expected to channelize synergies and lead to optimum
 utilization of available resources and result in greater economies of
 scale.
 
 The Company has accounted for the amalgamation under the ''pooling of
 interest method'' being an amalgamation in the nature of merger, as
 prescribed by the Accounting standard AS-14, Accounting for
 Amalgamations as per Accounting Standards notified by Companies
 (Accounting Standards) Rules, 2006, (as amended).
 
 7. Previous year comparatives
 
 The previous year''s figures have been re-classified/re-grouped to
 conform to current year''s classification.