HCL Technologies Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Mar 2021

1.Adjustment of finance cost includes interest expense

2. Adjustment for other financial assets, current refers to net change in other financial assets and other assets

3.Depriciation and Amortization expenses also includes impairment expense

4. Adjustment for other financial liabilities, current refers to net change in Provisions, other financial liabilities and other liabilities

5.Under Operating Activities-Other adjustment for which cash effects are investing or financing cash flow

Income on investments carried at fair value through profit and loss,Profit on sale of investments carried at fair value through other comprehensive income ,Profit on sale of investment in subsidiary carried at cost ,Profit on sale of property, plant and equipment

6. Other adjustment for non cash items- includes - Provision for doubtful debts bad debts (written back) written off and Other non cash charges

7.Cash flow used in obtaining control of subsidiaries or other business refers to investment in subsidiary” and “Payments for business acquisitions, net of cash acquired

8. Other cash receipts from sales of equity or debt instruments of other entities refers to Proceeds from sale/maturity of investments in securities

9. Other cash payment to acquire equity or debt instrument of other entities refers to Purchase of investments in securities

10.Purchase of property, plant and equipment also includes purchase of intangible

11.Under investing activities -Other inflows (Outflows) of cash

Investments in bank deposits,Deposits placed with body corporates,Proceeds from maturity of deposits placed with body corporates,Proceeds from sale of investment in subsidiary

12. Under Financing Activity - Other inflow (Outflow) of Cash refers to Payments for deferred and contingent consideration on business acquisitions.

Due to word and character limit, please refer the notes from the attachment uplaod on site.

1. The consolidated and the standalone financial results for the three months and year ended 31 March 2021 were reviewed by the Audit Committee and have been approved and taken on record by the Board of Directors at its meeting held on 23 April 2021. The statutory auditors have issued unmodified audit report on these results.

2. The Board of Directors has declared 1st Interim Dividend of Rs. 6/- per equity share of Rs. 2/- each and a Special interim dividend of Rs. 10/- per equity share of Rs. 2/- each for FY 2021-22. The Special Interim Dividend has been declared by the Board in recognition of the Company's recent milestone, crossing the $10 Billion mark in Revenue during FY'21.

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. The Hon'ble National Company Law Tribunal of New Delhi and Bengaluru have approved the Scheme of Amalgamation providing for the merger of four direct / step-down wholly-owned subsidiaries engaged in providing IT and IT related services viz. HCL Eagle Limited, HCL Comnet Limited, HCL Technologies Solutions Limited and Concept2Silicon Systems Private Limited (the "Transferor companies") with and into HCL Technologies Limited (the "Transferee company") with effect from 01 April 2019, the appointed date. The scheme has become effective on 13 July 2020 on filing of the certified true copy of the Orders of the Delhi and the Bengaluru NCLT with the Registrar of Companies on 13 March 2020 and 13 July 2020 respectively.
Since the Transferor Companies are the wholly-owned subsidiaries of the Transferee Company, there will be no issue and allotment of shares as consideration. The difference between the amounts recorded as investments of the Company (Transferee Company) and the amount of share capital of the aforesaid amalgamating subsidiaries (Transferor Companies) has been adjusted in the Common Control Transaction Capital Reserve. The comparative results have been restated for all period presented as per guidance under Appendix C of Ind AS 103 "Business Combinations".
The impact of the scheme is not material on the standalone financial results of the company.

5. Employee benefit expenses for the three months and year ended 31 March 2021 for the Company and the Group includes Rs. 243 crores and Rs. 728 crores respectively, being the one-time special bonus paid to employees in recognition of achieving the $10 Billion revenue mark in year ended 31 March 2021.

6. Current tax expense for the three months ended 31 March 2021 includes Rs. 419 crores being the tax impact of goodwill taken out of purview of tax depreciation w.e.f. 1 April 2020 by Finance Bill enacted in March 2021. Also deferred tax expense for the three months and year ended 31 March 2021 includes Rs. 914 crores and Rs. 1,222 crores respectively being the Deferred Tax Liabilities recognized by the Company on difference between book basis and tax basis of goodwill consequent upon enactment of above provisions.

7. On 10 March 2021, the Company through its subsidiary issued USD 500 million unsecured notes due 2026 (the "notes") for Rs. 3,656 crores. The notes bear interest at a rate of 1.375% per annum and will mature on 10 March 2026. Interest on the Notes will be paid semi-annually on 10 March and 10 September of each year, commencing from 10 September 2021. The Notes are listed on Singapore Exchange Securities Trading Limited (SGX-ST). The notes were issued at the discount price of 99.510% against par value and has an effective interest rate of 1.58% p.a. after considering the issue expenses and discount of Rs. 35 crores.

8. The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the group towards Provident Fund and Gratuity. The effective date from which the changes are applicable is yet to be notified and the final rules are yet to be framed. The Group will carry out an evaluation of the impact and record the same in the financial statements in the period in which the Code becomes effective and the related rules are published.

9. The figures of the last quarter are the balancing figures between audited figures in respect of the full financial year up to 31 March 2021 and the unaudited published year-to-date figures up to 31 December 2020 being the date of the end of the third quarter of the financial year which were subjected to a limited review.

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

11. 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" and Annexure "B1" are as follows: Annexure "A" Initial Disclosure to be made by entity identified as a Large corporate (For Table, kindly refer Corporate Announcements on www.bseindia.com)
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.
Annexure "B1" Annual Disclosure to be made by entity identified as a Large corporate
1. Name of the company: HCL Technologies Limited
2. CIN: L74140DL1991PLC046369
3. Report filed for FY: FY 2020-21
4. Details of borrowings (all figures in crores): (For Table, kindly refer Corporate Announcements on www.bseindia.com)
*Incremental borrowings mean any borrowing done during a particular financial year, of original maturity of more than 1 year, irrespective of whether such borrowing is for refinancing/repayment of existing debt or otherwise and shall exclude external commercial borrowings and intercorporate borrowings between a parent and subsidiary(ies).

Prateek Aggarwal
Chief Financial Officer

C. Vijayakumar
President and Chief Executive Officer

Shiv Nadar
Chief Strategy Officer