HCL Technologies Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2020

1. The consolidated and the standalone financial results for the quarter and year ended 31 March 2020 were reviewed by the Audit Committee and have been approved and taken on record by the Board of Directors at its meeting held on 7 May 2020. The statutory auditors have issued audit report with unmodified opinion on these results.



2. The Board of Directors at its meeting held on 7 May 2020 has recommended a final dividend of Rs. 2/- per share. This payment is subject to the approval of shareholders in the Annual General Meeting of the Company.



3. Financial results for all the periods presented have been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time) prescribed under Section 133 of the Companies Act, 2013 and other recognised accounting practices and policies to the extent applicable.



4. Pursuant to the approval of the shareholders through postal ballot (including remote e-voting), the Company has allotted 1,356,832,548 bonus shares of Rs. 2/- each fully paid-up on 10 December 2019 in the proportion of 1 equity share for every 1 equity share of Rs. 2/- each held by the equity shareholders of the Company as on the record date of 7 December 2019. Consequently the Company capitalized a sum of Rs. 271.37 crores from Retained earnings. The earnings per share and dividend per share have been adjusted for bonus issue for previous periods presented.



5. A wholly owned subsidiary (‘WOS’) with a VSAT License had received a demand from DoT in February 2015 for FY 2011-12 and FY 2013-14 for an amount of Rs. 133 crores, including penalty, interest and interest on penalty. It had received provisional assessment orders for all the prior years with no demand. Demand is primarily due to DoT including IT Services revenues and related exchange gains in Adjusted Gross Revenue (AGR). The WOS had obtained stay in 2015 and its petition is pending adjudication at TDSAT. The IT Services business had been demerged from the WOS with effect from 1 April 2012. The Hon’ble Supreme Court has pronounced its ruling on the AGR matter relating to Unified Access Service License on 24 October 2019. Subsequent to this ruling, the Company has obtained legal opinion and is of the view that it should be able to defend its position in the above matter.



6. Effective 1 April 2019, the Group has adopted Ind AS 116, Leases, using modified retrospective method. The Group has elected the practical expedients, which allows the Group not to reassess, its prior conclusions about lease identification, lease classification and initial direct costs. The comparative information is not restated in the financial results.In the statement of financial results for the current quarter and year to date period, the nature of expenses in respect of operating leases has changed from lease rent in previous period to depreciation cost for the right-of-use assets and finance cost for interest accrued on lease liability.



7. As per Ind AS 108 'Operating Segments’, the Company has disclosed the segment information only as part of the consolidated financial results.



8. The disclosure in respect of standalone financial results as per SEBI circular SEBI/HO/DDHS/CIR/P/2018/144 dated 26 November 2018 with respect to identification of Large Corporate in the prescribed format of Annexure "A" are as follows:



Name of the Company: HCL Technologies Limited

CIN: L74140DL1991PLC046369

Outstanding borrowing as on 31 March 2020: Rs. 178 Crores

Highest Credit Rating during the previous FY along with the name of the Credit Rating Agency: “AAA”

ICRA Limited

Name of the Stock Exchange in which the fine shall be paid, in case of shortfall in the required borrowing under the framework: BSE Limited



We confirm that we are a Large Corporate as per the applicability criteria given under SEBI circular SEBI/HO/DDHS/CIR/P/2018/144 dated 26 November 2018.



9. In view of pandemic relating to COVID -19, the group has considered internal and external information and has performed sensitivity analysis based on current estimates in assessing the recoverability of receivables, unbilled receivables, goodwill, intangible assets and other financial assets. However, the actual impact of COVID-19 on the Group's financial statements may differ from that estimated and the Company will continue to closely monitor any material changes to future economic conditions.



10. The figures of the last quarter are the balancing figures between audited figures in respect of the full financial year up to 31 March 2020 and the unaudited published year-to-date figures up to 31 December 2019 being the date of the end of the third quarter of the financial year which were subjected to a limited review.