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 Retail, Aerospace and defense,
 Automotive, Telecom, Financial Services, Government, Hi-tech, Media and
 Entertainment, Travel, Transportation and Logistics, Energy and
 utilities, Life Sciences and Healthcare.
 
 4.  Segment reporting
 
 Identification of Segments
 
 The Company''s operating businesses are organized and managed separately
 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 operating 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 centers 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 categorised based on items
 that are individually identifiable to that segment, while expenditure
 is categorised in relation to the associated turnover of the segment.
 Assets and liabilities are also identified to service segments.
 
 (ii) Geographic Segments
 
 Geographic segmentation is based on the location of the respective
 client. The principal geographical segments have been classified as
 America, Europe and others. Europe comprises business operations
 conducted by the Company in the United Kingdom, Sweden, Germany, Italy,
 Belgium, Netherlands, Finland, Switzerland, Ireland and Poland. 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. All other customers, mainly in
 Japan, Australia, New Zealand, Singapore, Malaysia, Israel, South
 Korea, India, China, Hong Kong, Czech Republic, Macau, UAE, Portugal
 and Russia 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 this
 schedule 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 fixed assets, sundry debtors,
 loans and advances, cash and bank balances and unbilled receivables.
 Segment assets do not include unallocated corporate and treasury
 assets, net deferred tax assets and advance taxes.
 
 Segment liabilities include sundry creditors and other liabilities.
 Segment liabilities do not include share capital, reserves, secured
 loans, unsecured loan 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
 miscellaneous income, income from investments and 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 investment, charge taken
 for stock options issued to employees, corporate expenses and finance
 cost.
 
 5.  Related party transactions
 
 a) Related parties where control exists
 
 Subsidiaries
 
 HCL Comnet Systems and Services Limited
 
 HCL Bermuda Limited
 
 HCL Technologies (Shanghai) Limited
 
 HCL Great Britain Limited
 
 HCL (Netherlands) BV
 
 HCL GmbH
 
 HCL Belgium NV
 
 HCL Sweden AB
 
 HCL Italy SLR
 
 HCL Australia Services Pty. 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 (formerly Intelicent India
 Limited)
 
 DSI Financial Solutions Pte. Limited
 
 HCL BPO Services (NI) Limited
 
 HCL Jones Technologies LLC
 
 HCL Singapore Pte. Limited
 
 HCL (Malaysia) Sdn. Bhd.
 
 HCL EAI Services Limited
 
 HCL Poland sp. z o.o
 
 Capital Stream, Inc.
 
 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
 
 HCL Technologies South Africa (Proprietary) Limited
 
 PT. HCL Technologies Indonesia Limited
 
 HCL Arabia LLC
 
 HCL Technologies France
 
 Anzospan Investments PTY Limited
 
 FILIAL ESPAÑOLA DE HCL TECHNOLOGIES, S.L(Spain)
 
 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., Puerto Rico- through subsidiary
 
 b) Related parties with whom transactions have taken place during the
 year
 
 Subsidiaries
 
 HCL America Inc., United States of America
 
 HCL Great Britain Limited, United Kingdom
 
 HCL (Netherlands) BV, Netherlands
 
 HCL GmbH, Germany
 
 HCL Belgium NV, Belgium
 
 HCL Sweden AB, Sweden
 
 HCL Australia Services Pty. Limited, Australia
 
 HCL (New Zealand) Limited, New Zealand
 
 HCL Hong Kong SAR Limited, Hong Kong
 
 HCL Comnet Systems and Services Limited, India
 
 HCL Comnet Limited, India
 
 HCL Bermuda Limited, Bermuda
 
 HCL Technologies (Shanghai) Limited, Shanghai
 
 HCL BPO Services (NI) Limited, Northern Ireland
 
 HCL Singapore Pte. Limited, Singapore
 
 HCL (Malaysia) Sdn. Bhd., Malaysia
 
 HCL EAI Services Limited, India
 
 HCL Global Processing Services Limited(formerly Intelicent India
 Limited)
 
 HCL Poland Sp.z.o.o., Poland
 
 Capital Stream Inc., United States of America
 
 HCL Axon (Pty) Limited
 
 Axon Solutions Inc. , United States of America
 
 Axon Solutions Limited, UK
 
 Axon Solutions Singapore Pte Limited
 
 Axon Solutions Sdn. Bhd., Malaysia
 
 HCL Insurance BPO Services Limited, UK
 
 Axon Solutions (Canada) Inc., Canada
 
 HCL Technologies Canada Inc.
 
 Axon Group Limited.
 
 HCL France
 
 HCL EAS Limited, UK
 
 Jointly controlled entities
 
 NEC HCL System Technologies Limited, India
 
 Others (Significant influence)
 
 HCL Corporation Limited
 
 HCL Infosystems Limited
 
 HCL Security Limited
 
 HCL Infinet Limited.
 
 HCL Holding Pvt. Limited.
 
 HCL Insys Pte Limited., Singapore
 
 c) Key Management Personnel
 
 Shiv Nadar, Chairman and Chief Strategy Officer
 
 Vineet Nayar, Chief Executive Officer and Whole-time Director
 
 c) 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 2,283.86 crores (previous year Rs
 2,219.44 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.
 
 d) Bank guarantees of Rs 24.39 crores (previous year Rs 6.39 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.
 
 11. Derivative Financial Instruments
 
 The Company is exposed to foreign currency fluctuations on foreign
 currency assets / liabilities, forecasted cash flows denominated in
 foreign currency. The use of derivatives to hedge foreign currency
 forecasted 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 party 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 between one to twenty months and the forecasted
 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 1399.20 crores (previous year Rs
 3,754.76 crores).
 
 Notes:
 
 1.  Balance as at year end is inclusive of deferred tax liability of Rs
 4.27 crores (previous year deferred tax assets of Rs 7.51 crores).
 
 2.  At 30 June 2011, the estimated net amount of existing gain that is
 expected to be reclassified into the income statement within the next
 twelve months is Rs 23.51 crores (previous year loss of Rs 99.97 crores).
 
 14.  Micro, Small and Medium Enterprises
 
 As per information available with the management, the dues payable as
 at any time during the year ended 30 June 2011 and 2010 to enterprises
 covered under The Micro, Small and Medium Enterprises Development Act,
 2006 is Rs Nil crores.
 
 This has been determined on the basis of responses received from
 vendors on specific confirmation sought by the Company in this regard.
 
 15.  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 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.
 
 The Company expects to contribute Rs 20.31 crores to gratuity in
 2011-12.
 
 Employer’s Contribution to Provident Fund
 
 The Guidance on implementing AS 15, Employee Benefits (revised 2005)
 issued by the Accounting Standard Board (ASB) states that benefits
 involving employer-established provident funds, which require interest
 shortfall to be recompensed are to be considered as defined benefits
 plans. Pending the issuance of the guidance note from the Actuarial
 Society of India, the Company''s actuary has expressed his inability to
 reliably measure provident fund liabilities. Accordingly the Company is
 unable to provide the related information.
 
 During the year ended 30 June 2011, the Company has contributed Rs 58.77
 crores (Previous year Rs 48.13 crores) towards employers’ contribution
 to the Provident Fund.
 
 16.  Joint Venture
 
 The Company has an interest in the following jointly controlled
 entities:
 
 17. 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 August 16, 2010 and is effective from April 1, 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 utilisation 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).
 
 19.  Previous year comparatives
 
 The previous year''s figures have been re-classified/re-grouped to
 conform to current year''s classification.
 
 I.  Registration details
 
 Registration No.  55-46369
 
 Balance Sheet Date 30 June 2011
 
 State Code 55
 
 II.  Capital raised during the year
 
 Public issue Rights issue
 
 Nil           Nil
 
 Bonus issue     Private Placement
 
 Nil             2,162,171
 
 Note: Capital raised during the year includes share application money.
 
 III.  Position of mobilisation and deployment of funds
 
 Total liabilities Total assets
 
 68,893,077        68,893,077
 
 Sources of funds Paid-up capital 1,387,419*
 
 Secured loans 10,298,674
 
 *Includes Rs 10,042 in respect of share application money.
 
 Reserves and surplus 57,204,053
 
 Unsecured loans 2,905
 
 Application of funds
 
 Net fixed assets Investments
 
 18,646,590** 26,532,707
 
 Net current assets Misc. expenditure
 
 22,383,246 Nil
 
 Accumulated losses Deferred tax
 
 Nil 1,330,605
 
 ** Includes Rs 5,687,337 thousands in respect of capital
 work-in-progress.
 
 IV.  Performance of Company
 
 Turnover     Total expenditure
 
 69,607,473   56,708,697
 
 Profit before tax   Profit after tax
 
 12,898,776          11,982,791
 
 Earnings per share (in Rs) Dividend rate (%)
 
 17.53 (Basic) 375% 17.18 (Diluted)
 
 V.  Generic names of Principal Products/Services of Company (as per
 monetary terms) Product description: Software
 
 Item code (ITC code): 852490