About
HCL Technologies Ltd
HCL Technologies Limited is a leading global IT services company that helps global enterprises re-imagine and transform their businesses through Digital technology transformation. The Company is primarily engaged in providing a range of software services, business process outsourcing and infrastructure services. It leverages an extensive offshore global technology workforce and intellectual properties to deliver solutions across select verticals including Financial Services, Manufacturing, Life Sciences & Technology Healthcare Services, Public Services, Retail & CPG, Oil & Gas, Energy & Utilities, Travel, Transportation & Logistics, Telecom, Government, Media, Publishing and Entertainment.
HCL Technologies Limited was incorporated on November 12, 1991 as HCL Overseas Limited. The Company received the Certificate of Commencement of Business on February 10, 1992. In July 14, 1994, name of the Company changed to HCL Consulting Limited. In 1996, Company formed a 50:50 joint venture namely HCL Perot Systems NV with Perot Systems Corporation to provide access to high value client base of Perot Systems.
HCL Technologies focuses on Transformational Outsourcing, working with clients in areas that impact and re-define the core of their business after their IPO in 1999 with aim of foray into the global IT landscape and in the same year, the company changed its name to HCL Technologies Ltd. The company started to create wholly owned subsidiaries to cater specific geographic regions from the year 1999. They had the widest service portfolio among Indian IT service providers, with each of its services having attained critical mass.
In the year of 2000 the company set up a dedicated offshore development centre in Chennai for KLA-Tencor Corporation, a supplier of process control and yield management solutions for the semiconductor and related microelectronics industry. HCL Comnet, the wholly owned subsidiary company in association with its new partner Globeset Inc introduced net security management solutions. The company launched the Nokia professional centre in New Delhi, second among the chain of centres across the country.
In the year 2001, the company entered into a strategic alliance with Nasdaq-listed Vitesse Semiconductor to develop software solutions for global networking markets. They also entered into a strategic alliance with Toshiba Information Systems (Japan) Corporation to set up a dedicated offshore software development centre for developing embedded software for the Japanese company. HCL Comnet Systems & Services Ltd, a fully owned subsidiary company was gone into the business of Web-enabling applications through the launch of demand-chain management solutions.
In the year 2002, the company acquired Gulf Computers Inc, USA and formed a JV with Answerthink, Inc., a leading US based provider of technology enabled business transformation solutions to Global 2000 firms. A strategic technology joint venture was made with Jones Apparel Group, Inc. Jones Apparel Group, Inc. a Fortune 500 Company in the same year and also entered into a joint venture with M.A. Partners, a management consulting firm to address software services opportunities in Global Finance Markets, especially in the areas of Investment Banking, Asset Management and Private Banking. M.A. Partners brings a wealth of domain expertise and clients including many of the top Global Investment Banking firms to the JV.
In the year 2003, BT Group UK's telecom service provider gave a contract worth of $160 million for BPO service operations. The company set up an exclusive centre in Noida for executing the orders given by BT Group. The software business of HCL Infosystems Ltd was transferred to the company. The company set up Insurance Solutions Center in Chennai.
In the year 2004, the company entered into a strategic tie-up with IBM Rational Software, a division of IBM, to strengthen its software development capabilities. The company was conferred the prestigious Excellence in Education Award for 2004 by the Life Office Management Association (LOMA). In August 2004, BPO delivery centre in Chennai got BS7799 certification, by the British Standards Institute (BSI). They introduced Cross View; a framework based Computer Systems Validation (CSV) methodology for the development of robust software applications in the Life Sciences arena.
In the year 2005, SEBI made a tie up with the company for market surveillance and the company formed joint venture with NEC, Japan. The company amalgamated their six wholly owned subsidiaries namely, DSL Software Ltd, Shipara Technologies Ltd, HCL Technologies BPO Services Ltd, HCL Technologies (Mumbai) Ltd, Aquila Technologies Ltd and HCL Enterprise Solutions (India) Ltd with the company. In February 2005, the company acquired an Irish Call centre and this acquisition establishes the company's position as the single largest BPO Centre operation on the Island of Ireland.
In the year 2006, the company launched RoHS Compliance Management System for Medical Device Users and entered $70 million outsourcing deal with Teradyne of US. HCL developed Trusted ICT Infrastructure Platforms for BPO-ITE'S Segment and has linked pact with Canada based electronics manufacturing services company Celestica Inc to jointly design and manufacture electronic products for global original equipment manufacturers (OEMs).
The company forayed into an alliance with $200 million Saudi Arabian company namely Advanced Electronics Company (AEC) to implement IT projects in West Asia in the year 2007 and formed a strategic alliance with Eckler to strengthen Insurance Domain expertise. The company made USD 15 million contract with Aleni Aeronautica, to provide engineering services that will support the improvement of the C-27J Spartan production line.
In the year 2007, HCL Venture Capital Ltd, a company incorporated in Bermuda and downstream subsidiary of the company was merged with HCL Bermuda Ltd. Also, HCL Technologies (Mass) Inc., a company incorporated in United States of America and a down stream subsidiary of the company was merged with HCL America Inc.
During the year 2007-08, the company incorporated their wholly owned subsidiary viz. HCL Technologies (Shanghai) Limited. Through this entity the company established its first sales and delivery center in Shanghai with an initial investment of Rs. 2.77 crore. In order to consolidate its position in Enterprise Application Integration (EAI) space, the company acquired the balance 49% stake in its Joint Venture Company viz. HCL EAI Services Inc., a California corporation for a consideration of Rs.13.32 crore through their downstream subsidiary HCL America Inc., a company incorporated in USA. With this acquisition, HCL EAI Services Inc. became 100% subsidiary of the company. Further, HCL EAI Services Inc. was amalgamated with HCL America Inc. with effect from July 1, 2008.
During the year, the company set up four branches at Dublin in Ireland, Zurich in Switzerland, Tel- Aviv in Israel and Prague in Czech Republic. In December 2007, the company and Jones had entered into an agreement (Termination Agreement) to terminate the Joint Venture agreement entered in June 2002. As a part of the termination agreement, a subsidiary of the Company has obtained binding commitments for the provision of IT services to Jones, with an aggregate contract value of Rs. 96.8 crores (USD 22.5 million) upto 2012. Further, pursuant to this termination, the Joint Venture Company in Bermuda viz. HCL Jones Technologies (Bermuda) Limited will be wound up.
During the year 2008-09, the company acquired all the capital stock of Axon Group Ltd (formerly known as Axon Group Plc), a leading UK based SAP consulting company for a cash consideration of Rs. 3302.39 crores by way of a cash offer made by the company to the shareholders of Axon Group Ltd. The company acquired all the capital stock of HCL Insurance BPO Services Ltd (formerly known as Liberata Financial Services Ltd) (IBS), incorporated in UK. Also, the company acquired all the capital stock of HCL Expense Management Services, Inc (formerly known as Control Point Solutions, Inc) (CPS) for a cash consideration of Rs. 107.65 crores.
During the year, the company set up six subsidiaries to carry out the activities in Special Economic Zone in different locations in India to get various tax benefits. They also set up their branches in different locations to expand its operations in new geographies. The company set up their branches in Dubai, UAE, Helsinki, Portugal, Finland and Macau during the year ended June 30, 2009 while the branch in Russia was set subsequent to June 30, 2009. In September 2008, HCL BPO expanded their global presence to the USA with the acquisition of Control Point Solutions (CPS). This acquisition makes HCL BPO the first Indian BPO to enter the Telecommunications Expense Management (TEM) market. CPS has been rebranded to HCL Expense Management Services (HCL EMS).
During the year 2009-10, the company set up their step down subsidiaries in Denmark viz. HCL Technologies Denmark ApS and in Norway viz. HCL Technologies Norway AS. Also, they set up their branch office in USA.
During the year 2010-11, as per the scheme of amalgamation, HCL Technoparks Ltd, a wholly owned subsidiary of the Company, was amalgamated with the company with effect from August 27, 2010. They incorporated HCL Technologies France, PT HCL Technologies Indonesia, HCL Technologies Philippines, Inc, HCL Arabia LLC, Anzospan Investments Pty. Limited, HCL Technologies South Africa (Proprietary) Ltd and Filial Espanola De HCL Technoloiges S.L. as step down subsidiaries of the company. Also, they closed down their two steps down subsidiaries viz. Aspire Solutions Sdn. Bhd., a company incorporated in Malaysia and Axon EBT Trustees Limited, a company incorporated in United Kingdom. In January 2011, it acquired certain software assets of Citi Securities and Fund Services.
In July 2011, the company was selected to provide application management services to IKEA. In September 2011, the company signed a strategic five year, Application Support Transformation deal with Deutsche Bank's Capital Markets arm. The service factory delivery model implemented by HCL is expected to enhance productivity, driven by transparent Service Level Agreements (SLAs) and performance metrics, and comes as Deutsche Bank endeavors to move away from a traditional applications support model to a set of process driven services governed by global standards like Information Technology Infrastructure Library (ITIL) and LEAN.
In October 2011, Cast SA signed a strategic partnership agreement with the company to strengthen the ASSESS-SMART services of HCL Technologies. In February 2012, the company signed an agreement with State Street Bank and Trust Company (State Street) to provide business process outsourcing services in support of a variety of State Street's investment services businesses. Also, they entered into a strategic relationship with Great American Insurance Group (GAIG), a company in specialty property and casualty insurance, to provide Integrated IT services, Business Process Outsourcing (BPO) and Infrastructure Management Services to GAIG and its affiliates.
In 2012, HCL Technologies entered into strategic relationship with State Street to provide BPO services'. HCL Tech bags outsourcing deal from State Street. - HCL Technologies enters into strategic relationship with Great American Insurance Group. HCL wins ICD 10 transformation deal with Blue Shield of California. HCL partners with Cisco to open South Africa Centre of Excellence (GCoE) in Johannesburg.
In 2013 HCL Technologies signed a long-term IT services agreement with Nokia. The company also signed a Multi-Year, Multi-Million Dollar Partnership with Cobham Plc. The company gets into the process to provide Strategic Business Transformation Services to Husqvarna Group. The company receives Pegasystems Healthcare Partner Excellence Award. The company Opens Michigan Technology Development Center. The company Wins ITSMA's Diamond and Gold Awards for Marketing Excellence. The company receives PHD Chamber Good Corporate Citizen Award 2013.
In 2014, HCL Technologies receives Best Governed Company Award by Asian Centre for Corporate Governance & Sustainability. The company also wins CNBC-TV18's India Business Leader Award for Outstanding Company of the Year. The company wins The HR Excellence Award 2014.
In 2015, the company opens new Global Delivery Centre in Oslo. The company Expands U.S. Footprint with New Global Delivery Center in Frisco. The company is Certified as Top Employer in the UK for the Ninth Consecutive Year. Tele2 and HCL Technologies form Strategic Alliance. HCL Technologies and Aegon launch cXstudio for customer-centric digital channel innovation. HCL Technologies wins five-year IT Managed Services Contract with SAI Global. HCL announces a United Xperience Lab Offering for institutionalizing Digital Co-Innovation with customers. The company acquires US based PowerObjects.
On 17 November 2015, HCL Technologies announced that it had won an Application Development and Maintenance contract from Deutsche Bank. Under the terms of agreement, HCL will provide digital solutions, systems integration, product implementation and design, build and test new applications in addition to the ongoing application maintenance and support services.
On 25 January 2016, HCL Technologies announced that it had won an IT infrastructure services contract from Alstom, a world leader in the supply of the most complete range of systems, equipment and services in the railway sector. On the same day, HCL Technologies announced the acquisition of Point to Point Limited and Point to Point Products Limited (jointly referred as Point to Point or P2P), UK's leading end-user cloud solutions design, implementation and delivery specialists.
On 8 February 2016, HCL Technologies announced the launch of an Internet of Things (IoT) Incubation Center in Redmond, Washington, USA, designed to leverage Microsoft Azure IoT Suite to accelerate enterprise IoT adoption.
On 16 February 2016, HCL Technologies announced that it had won a significant IT outsourcing contract from the Volvo Group, one of the world's leading manufacturers of commercial vehicles. Simultaneously, HCL Tech announced the acquisition of Volvo's external IT business, adding 40 new customers from the Nordics and France to its portfolio, further enhancing its market leading position in these regions.
On 22 February 2016, HCL Technologies and Symantec Corporation, the global leader in cyber security, announced their plan to expand their existing partnership to help enterprises in areas of Cloud Security, Cyber Threats and Forensic Solutions. On 2 March 2016, HCL Technologies announced that it had won a five year Next-Generation Information Technology Outsourcing contract from Husqvarna AB, a leading manufacturer of outdoor power products including robotic mowers, garden tractors, chainsaws and trimmers.
On 1 April 2016, HCL Technologies announced an agreement to acquire (through demerger) all of the business of Geometric Limited, except for the 58% stake that Geometric owns in the joint venture 3 DPLM Software Solutions Ltd. with Dassault Systemes. The swap ratio for the merger was fixed at 10 equity shares of Rs. 2 each of HCL Tech for every 43 equity shares of Geometric of Rs 2. each as on the record date. Geometric is one of India's leading PLM consulting, mechanical engineering and manufacturing engineering services providers.
On 8 June 2016, HCL Technologies announced that it has signed partnerships with two leading automotive solution providers Movimento and Rightware to expand its offerings for the fast-growing smart vehicle ecosystem. On 17 June 2016, HCL Technologies announced that it had signed a strategic IT partnership contract with LeasePlan, a global fleet management and driver mobility company of Dutch origin. Under the terms of agreement, HCL will create Group Competency in collaboration with LeasePlan Information Services to provide IT solutions in various domains such as core leasing platforms, business intelligence and data warehousing solutions, enterprise IT solutions, and application development & maintenance services.
On 1 September 2016, HCL Technologies announced that it has entered into a partnership agreement with Mesosphere, a datacenter infrastructure and container orchestration company. The partnership combines Mesosphere's Datacenter Operating System (DC/OS) with HCL's unique Next-Gen IT & Operations capabilities to deliver a unified operational experience and achieve efficient resource utilization for clients.
On 14 September 2016, HCL Technologies announced that it has won a contract to provide application management services to Western Australia's leading energy provider, Synergy. On 21 October 2016, HCL Technologies announced that it had entered into an agreement to acquire Butler America Aerospace, LLC (Butler Aerospace), a provider of engineering, design services and aftermarket engineering services to US Aerospace and Defense customers.
On 24 January 2017, HCL Technologies announced that Swiss financial services company UBS AG has renewed its finance operations services contract with the company for three and half years. On 20 March 2017, HCL Technologies announced that it has been chosen as the strategic IT services provider to the Volvo Ocean Race, the world's longest professional sporting event.
On 17 April 2017, HCL Technologies announced that Singapore Exchange has renewed its IT services contract with the company for five years. Expanding the scope from the earlier year 2010 engagement covering IT infrastructure, data center services and IT management, the new contract includes transformational IT services in a managed services construct - spanning IT infrastructure, end-user computing, data center, cloud services, workplace transformation, managed networks, enterprise security and GRC.
On 24 April 2017, HCL Technologies announced an agreement to acquire US based Urban Fulfillment Services, LLC, a provider of mortgage business process & fulfilment services. On 18 May 2017, HCL Technologies announced that it has joined the Duck Creek Global Alliance Program. As a Delivery Partner of Duck Creek Technologies' Global Alliance Program, HCL will provide customers with industry-leading application maintenance and technical support solutions to reduce time, risk, and costs during implementation and throughout the lifecycle of the deployed software.
On 20 June 2017, HCL Technologies announced the launch of its Next Generation Research Platform (NGRP), a pre-competitive drug-discovery ecosystem built with open standards. This Platform will provide research scientists with a collaborative ecosystem, greater computational resources, and the ability to mine research data to make more informed scientific decisions, while improving productivity by automating and eliminating manual administrative tasks.
On 29 August 2017, HCL Technologies announced the opening its new delivery centre in Gothenburg, Sweden. The new centre will be a key hub in HCL's global delivery network, providing cutting-edge transformational IT services as part of the global shared services model. In addition, the Gothenburg office will also become HCL's global headquarters for its mainframe services and automotive centre of excellence.
On 5 September 2017, HCL Technologies agreed to acquire ETL Factory Limited, doing business as Datawave, a UK-based company that has created an innovative data automation platform which enables enterprise customers execute large scale, complex data-migration and data-integration projects in a leaner, faster and smarter way. The flagship product Datawave won the Informatica Innovation Award and is also extendable to other platforms, including big data.
On 6 September 2017, HCL Technologies (HCL) announced a new strategic partnership with Alpha Insight, an intelligent products and solutions company headquartered in London, UK, with industry leading expertise in Business Flow Monitoring and Operational Intelligence. The transaction, which includes purchase of select assets, bolsters HCL's DRYiCE Platform and its positioning as an Enterprise A.I Foundation.
On 30 October 2017, HCL Technologies (HCL) announced collaboration with Red Hat, the world's leading provider of open source solutions, to offer HCL Application Platform-as-a-Service (PaaS) services to enterprise customers globally. On 14 November 2017, HCL Technologies (HCL) announced that it had won a five-year IT infrastructure services contract from Jardine Lloyd Thompson Group (JLT), one of the world's leading providers of insurance, reinsurance and employee benefits related advice, brokerage and associated services.
On 5 December 2017, HCL Technologies (HCL) announced that it has entered into a strategic partnership with Siemens on Industry 4.0 solutions, with a strategic collaboration on the Siemens Industry Software Suite. The global partnership with Siemens on Mindsphere, a cloud-based open Internet of Things (IoT) operating system, comprises technology, application development, connectivity solutions, system integration and go-to-market strategy.
In January 2018,HCL signed a global reseller agreement with SAP SE where SAP will resell the HCL next-generation maintenance,repair and overhaul solution under the brand name of SAP Enterprise Asset Management(SAP EAM).The company was also identified as one of the strategic partners by SAP in its global partner network to drive IoT business. The company has been awarded Best RPA Implementation in Supply Chain Management at Asia Outsourcing Leadership Awards 2018.
As on 31 March 2018,the company has 94 subsidiaries and 9 associate companies under its roof.
During the year 2018-19, the Company, through its step-down wholly-owned subsidiary HCL America Inc., acquired Telerx Marketing, Inc., a Delaware company. Pursuant to this acquisition, Telerx Marketing, Inc. and all its subsidiaries became the wholly-owned stepdown subsidiaries of the Company with effect from April 06, 2018. The Company, through its step-down wholly-owned subsidiary HCL America Inc., entered into a Joint Venture agreement dated April 12, 2018 with Sumeru Equity Partners, a technology and growth-focused private equity firm. In terms of the said JV agreement, 80% of the shareholding in the JV company named HCL Technologies SEP Holdings Inc., is held by HCL America Inc., 19.50% is held by Sumeru Equity Partners and the balance 0.5% is held by CEO of Actian Corporation. The JV Company had a wholly-owned subsidiary, Octavian Acquisition Corp., which ultimately acquired 100% stake in Actian Corporation. Pursuant to this acquisition, Actian Corporation and its all subsidiaries became the step-down subsidiaries of the Company with effect from July 17, 2018. The Company, through its step-down wholly-owned subsidiary HCL Technologies Germany GmbH, acquired Honigsberg & Duvel Datentechnik GmbH, an IT and engineering service provider headquartered in Wolfsburg,
Germany. Pursuant to this acquisition, Honigsberg & Duvel Datentechnik GmbH and all its subsidiaries became the wholly-owned step-down subsidiaries of the Company with effect from October 2, 2018.
During the year 2018-19, Pursuant to the Merger Agreement dated April 12, 2018, Octavian Acquisition Corp. was merged with and
into its wholly-owned subsidiary Actian Corporation, upon completion of the acquisition of Actian Corporation. HCL Mortgage Holdings, LLC, a Delaware company, was voluntarily dissolved during the year. Ingres Canada Corporation, a subsidiary of Actian
Corporation, became the step-down wholly-owned subsidiary of the Company pursuant to the acquisition of Actian Corporation. However, since it was not in operation and was therefore voluntarily dissolved during the year.
Pursuant to the stock transfer agreements executed between HCL America Inc. and HCL Technologies UK Limited, wholly-owned step-down subsidiaries of the Company, the entire shareholding of HCL Italy SRL and HCL Great Britain Limited was transferred from HCL America Inc. to HCL Technologies UK Limited. HCL had entered into a joint venture agreement with DXC Technology (DXC) in July 2015 pursuant to which a joint venture company namely CeleritiFinTech Limited was formed, in which the Company held 51% stake through HCL Technologies UK Limited, a wholly owned step-down subsidiary of the Company and the balance stake was held by DXC. CeleritiFinTech Italy S.r.l was incorporated as a wholly-owned subsidiary of CeleritiFinTech Limited. The joint venture arrangement was discontinued w.e.f. September 30, 2017 and the Company formed a new arrangement (IP Partnership) with DXC. Pursuant to the termination of the JV agreement, the 51% stake held by HCL Technologies UK Limited in CeleritiFinTech Italy S.r.l was transferred to DXC.
As on 31 March 2019, the Company has 133 subsidiaries and 8 associate companies.
During the FY 2019-20,the company has launched a dedicated HCL Microsoft Business Unit focused on Microsoft Technologies.
As on 31 March 2020,the company has 137 subsidiaries and 11 associate companies under its roof.
During FY 2019-20, the Company, through its step-down wholly owned subsidiary, HCL America Inc., acquired Strong Bridge Holdings, Inc. and pursuant to said acquisition, Strong Bridge Holdings, Inc and its subsidiaries have become the wholly owned step-down subsidiaries of the Company w.e.f. April 1, 2019. The Company signed an agreement with IBM Corporation, USA for asset purchase of IBM's seven software products for an aggregate amount of USD 1.8 billion; and the said transaction was completed on June 30, 2019. The Company acquired Sankalp Semiconductor Pvt. Ltd., a company incorporated in India and pursuant to this acquisition, ankalp Semiconductor Pvt. Ltd. and all the subsidiaries became the step-down subsidiaries of the Company w.e.f. October 10, 2019.
As on March 31, 2020, the Company has 137 subsidiaries and 11 associate companies.
As on March 31, 2021, the Company has 140 subsidiaries and 11 associate companies.
The Company's step-down wholly owned subsidiary, HCL Australia Services Pty. Ltd., acquired DWS Limited (DWS), a public company listed on the ASX, the Australian Securities Exchange. Pursuant to this acquisition, DWS and all its subsidiaries have become step-down wholly owned subsidiaries of the Company with effect from January 5, 2021..
The Company acquired asset carve-out of the product and services business that comprises of the Self-Optimizing Network (SON) from Cisco Systems Inc., a company incorporated in California, which was completed on October 25, 2020.
In February 2021, HCL has signed a five-year Digital Workplace Services Agreement with Airbus. HCL will establish a modernized digital workplace to enhance the user experience and service quality for the majority of Airbus employees globally.
During FY 2020-21, HCL Technologies Angola (SU), LDA., a private limited liability company, was incorporated as a step-down wholly owned subsidiary of the Company. HCL Technologies S.A.C., a Corporation was incorporated as a step-down wholly owned subsidiary of the Company.
The Scheme providing for the amalgamation of four direct / step-down wholly owned subsidiaries of the Company namely, HCL Eagle Limited, HCL Comnet Limited, HCL Technologies Solutions Limited and Concept2Silicon Systems Private Limited, with and into the
Company, was sanctioned by the Hon'ble National Company Law Tribunal, New Delhi vide its Order dated December 12, 2019 along with its Modification Order dated January 23, 2020 and certified copy of the said Order was filed with the Registrar of Companies on March 13, 2020. Accordingly, the Scheme became effective from July 13, 2020 i.e. the date from which the certified copies of orders of both the jurisdictional Tribunals were filed with the Registrar of Companies. The Appointed Date of the Scheme was April 1, 2019.
During financial year March 31, 2022, the Company's step-down wholly owned subsidiary, HCL Technologies Germany GmbH acquired 51% stake in GBS IT w.e.f. January 5, 2022 through a Joint Venture (JV) agreement, with Deutsche ApoBank, the largest cooperative primary bank in Germany. The Company's step-down wholly owned subsidiary, HCL Hungary Kft., has w.e.f. April 2, 2022, acquired 100% stake in Starschema, a LLP incorporated in Hungary.
As on March 31, 2022, the Company has 120 subsidiaries and 8 associate companies.
During FY 2021-22, new step-down wholly owned subsidiaries of the Company were incorporated like HCL Technologies Costa Rica Sociedad De Responsabilidad Limitada, HCL Technologies Bahrain W.L.L, HCL Technologies Slovakia and HCL Technologies Morocco Limited.
HCL Technologies Ltd
Company History
HCL Technologies Limited is a leading global IT services company that helps global enterprises re-imagine and transform their businesses through Digital technology transformation. The Company is primarily engaged in providing a range of software services, business process outsourcing and infrastructure services. It leverages an extensive offshore global technology workforce and intellectual properties to deliver solutions across select verticals including Financial Services, Manufacturing, Life Sciences & Technology Healthcare Services, Public Services, Retail & CPG, Oil & Gas, Energy & Utilities, Travel, Transportation & Logistics, Telecom, Government, Media, Publishing and Entertainment.
HCL Technologies Limited was incorporated on November 12, 1991 as HCL Overseas Limited. The Company received the Certificate of Commencement of Business on February 10, 1992. In July 14, 1994, name of the Company changed to HCL Consulting Limited. In 1996, Company formed a 50:50 joint venture namely HCL Perot Systems NV with Perot Systems Corporation to provide access to high value client base of Perot Systems.
HCL Technologies focuses on Transformational Outsourcing, working with clients in areas that impact and re-define the core of their business after their IPO in 1999 with aim of foray into the global IT landscape and in the same year, the company changed its name to HCL Technologies Ltd. The company started to create wholly owned subsidiaries to cater specific geographic regions from the year 1999. They had the widest service portfolio among Indian IT service providers, with each of its services having attained critical mass.
In the year of 2000 the company set up a dedicated offshore development centre in Chennai for KLA-Tencor Corporation, a supplier of process control and yield management solutions for the semiconductor and related microelectronics industry. HCL Comnet, the wholly owned subsidiary company in association with its new partner Globeset Inc introduced net security management solutions. The company launched the Nokia professional centre in New Delhi, second among the chain of centres across the country.
In the year 2001, the company entered into a strategic alliance with Nasdaq-listed Vitesse Semiconductor to develop software solutions for global networking markets. They also entered into a strategic alliance with Toshiba Information Systems (Japan) Corporation to set up a dedicated offshore software development centre for developing embedded software for the Japanese company. HCL Comnet Systems & Services Ltd, a fully owned subsidiary company was gone into the business of Web-enabling applications through the launch of demand-chain management solutions.
In the year 2002, the company acquired Gulf Computers Inc, USA and formed a JV with Answerthink, Inc., a leading US based provider of technology enabled business transformation solutions to Global 2000 firms. A strategic technology joint venture was made with Jones Apparel Group, Inc. Jones Apparel Group, Inc. a Fortune 500 Company in the same year and also entered into a joint venture with M.A. Partners, a management consulting firm to address software services opportunities in Global Finance Markets, especially in the areas of Investment Banking, Asset Management and Private Banking. M.A. Partners brings a wealth of domain expertise and clients including many of the top Global Investment Banking firms to the JV.
In the year 2003, BT Group UK's telecom service provider gave a contract worth of $160 million for BPO service operations. The company set up an exclusive centre in Noida for executing the orders given by BT Group. The software business of HCL Infosystems Ltd was transferred to the company. The company set up Insurance Solutions Center in Chennai.
In the year 2004, the company entered into a strategic tie-up with IBM Rational Software, a division of IBM, to strengthen its software development capabilities. The company was conferred the prestigious Excellence in Education Award for 2004 by the Life Office Management Association (LOMA). In August 2004, BPO delivery centre in Chennai got BS7799 certification, by the British Standards Institute (BSI). They introduced Cross View; a framework based Computer Systems Validation (CSV) methodology for the development of robust software applications in the Life Sciences arena.
In the year 2005, SEBI made a tie up with the company for market surveillance and the company formed joint venture with NEC, Japan. The company amalgamated their six wholly owned subsidiaries namely, DSL Software Ltd, Shipara Technologies Ltd, HCL Technologies BPO Services Ltd, HCL Technologies (Mumbai) Ltd, Aquila Technologies Ltd and HCL Enterprise Solutions (India) Ltd with the company. In February 2005, the company acquired an Irish Call centre and this acquisition establishes the company's position as the single largest BPO Centre operation on the Island of Ireland.
In the year 2006, the company launched RoHS Compliance Management System for Medical Device Users and entered $70 million outsourcing deal with Teradyne of US. HCL developed Trusted ICT Infrastructure Platforms for BPO-ITE'S Segment and has linked pact with Canada based electronics manufacturing services company Celestica Inc to jointly design and manufacture electronic products for global original equipment manufacturers (OEMs).
The company forayed into an alliance with $200 million Saudi Arabian company namely Advanced Electronics Company (AEC) to implement IT projects in West Asia in the year 2007 and formed a strategic alliance with Eckler to strengthen Insurance Domain expertise. The company made USD 15 million contract with Aleni Aeronautica, to provide engineering services that will support the improvement of the C-27J Spartan production line.
In the year 2007, HCL Venture Capital Ltd, a company incorporated in Bermuda and downstream subsidiary of the company was merged with HCL Bermuda Ltd. Also, HCL Technologies (Mass) Inc., a company incorporated in United States of America and a down stream subsidiary of the company was merged with HCL America Inc.
During the year 2007-08, the company incorporated their wholly owned subsidiary viz. HCL Technologies (Shanghai) Limited. Through this entity the company established its first sales and delivery center in Shanghai with an initial investment of Rs. 2.77 crore. In order to consolidate its position in Enterprise Application Integration (EAI) space, the company acquired the balance 49% stake in its Joint Venture Company viz. HCL EAI Services Inc., a California corporation for a consideration of Rs.13.32 crore through their downstream subsidiary HCL America Inc., a company incorporated in USA. With this acquisition, HCL EAI Services Inc. became 100% subsidiary of the company. Further, HCL EAI Services Inc. was amalgamated with HCL America Inc. with effect from July 1, 2008.
During the year, the company set up four branches at Dublin in Ireland, Zurich in Switzerland, Tel- Aviv in Israel and Prague in Czech Republic. In December 2007, the company and Jones had entered into an agreement (Termination Agreement) to terminate the Joint Venture agreement entered in June 2002. As a part of the termination agreement, a subsidiary of the Company has obtained binding commitments for the provision of IT services to Jones, with an aggregate contract value of Rs. 96.8 crores (USD 22.5 million) upto 2012. Further, pursuant to this termination, the Joint Venture Company in Bermuda viz. HCL Jones Technologies (Bermuda) Limited will be wound up.
During the year 2008-09, the company acquired all the capital stock of Axon Group Ltd (formerly known as Axon Group Plc), a leading UK based SAP consulting company for a cash consideration of Rs. 3302.39 crores by way of a cash offer made by the company to the shareholders of Axon Group Ltd. The company acquired all the capital stock of HCL Insurance BPO Services Ltd (formerly known as Liberata Financial Services Ltd) (IBS), incorporated in UK. Also, the company acquired all the capital stock of HCL Expense Management Services, Inc (formerly known as Control Point Solutions, Inc) (CPS) for a cash consideration of Rs. 107.65 crores.
During the year, the company set up six subsidiaries to carry out the activities in Special Economic Zone in different locations in India to get various tax benefits. They also set up their branches in different locations to expand its operations in new geographies. The company set up their branches in Dubai, UAE, Helsinki, Portugal, Finland and Macau during the year ended June 30, 2009 while the branch in Russia was set subsequent to June 30, 2009. In September 2008, HCL BPO expanded their global presence to the USA with the acquisition of Control Point Solutions (CPS). This acquisition makes HCL BPO the first Indian BPO to enter the Telecommunications Expense Management (TEM) market. CPS has been rebranded to HCL Expense Management Services (HCL EMS).
During the year 2009-10, the company set up their step down subsidiaries in Denmark viz. HCL Technologies Denmark ApS and in Norway viz. HCL Technologies Norway AS. Also, they set up their branch office in USA.
During the year 2010-11, as per the scheme of amalgamation, HCL Technoparks Ltd, a wholly owned subsidiary of the Company, was amalgamated with the company with effect from August 27, 2010. They incorporated HCL Technologies France, PT HCL Technologies Indonesia, HCL Technologies Philippines, Inc, HCL Arabia LLC, Anzospan Investments Pty. Limited, HCL Technologies South Africa (Proprietary) Ltd and Filial Espanola De HCL Technoloiges S.L. as step down subsidiaries of the company. Also, they closed down their two steps down subsidiaries viz. Aspire Solutions Sdn. Bhd., a company incorporated in Malaysia and Axon EBT Trustees Limited, a company incorporated in United Kingdom. In January 2011, it acquired certain software assets of Citi Securities and Fund Services.
In July 2011, the company was selected to provide application management services to IKEA. In September 2011, the company signed a strategic five year, Application Support Transformation deal with Deutsche Bank's Capital Markets arm. The service factory delivery model implemented by HCL is expected to enhance productivity, driven by transparent Service Level Agreements (SLAs) and performance metrics, and comes as Deutsche Bank endeavors to move away from a traditional applications support model to a set of process driven services governed by global standards like Information Technology Infrastructure Library (ITIL) and LEAN.
In October 2011, Cast SA signed a strategic partnership agreement with the company to strengthen the ASSESS-SMART services of HCL Technologies. In February 2012, the company signed an agreement with State Street Bank and Trust Company (State Street) to provide business process outsourcing services in support of a variety of State Street's investment services businesses. Also, they entered into a strategic relationship with Great American Insurance Group (GAIG), a company in specialty property and casualty insurance, to provide Integrated IT services, Business Process Outsourcing (BPO) and Infrastructure Management Services to GAIG and its affiliates.
In 2012, HCL Technologies entered into strategic relationship with State Street to provide BPO services'. HCL Tech bags outsourcing deal from State Street. - HCL Technologies enters into strategic relationship with Great American Insurance Group. HCL wins ICD 10 transformation deal with Blue Shield of California. HCL partners with Cisco to open South Africa Centre of Excellence (GCoE) in Johannesburg.
In 2013 HCL Technologies signed a long-term IT services agreement with Nokia. The company also signed a Multi-Year, Multi-Million Dollar Partnership with Cobham Plc. The company gets into the process to provide Strategic Business Transformation Services to Husqvarna Group. The company receives Pegasystems Healthcare Partner Excellence Award. The company Opens Michigan Technology Development Center. The company Wins ITSMA's Diamond and Gold Awards for Marketing Excellence. The company receives PHD Chamber Good Corporate Citizen Award 2013.
In 2014, HCL Technologies receives Best Governed Company Award by Asian Centre for Corporate Governance & Sustainability. The company also wins CNBC-TV18's India Business Leader Award for Outstanding Company of the Year. The company wins The HR Excellence Award 2014.
In 2015, the company opens new Global Delivery Centre in Oslo. The company Expands U.S. Footprint with New Global Delivery Center in Frisco. The company is Certified as Top Employer in the UK for the Ninth Consecutive Year. Tele2 and HCL Technologies form Strategic Alliance. HCL Technologies and Aegon launch cXstudio for customer-centric digital channel innovation. HCL Technologies wins five-year IT Managed Services Contract with SAI Global. HCL announces a United Xperience Lab Offering for institutionalizing Digital Co-Innovation with customers. The company acquires US based PowerObjects.
On 17 November 2015, HCL Technologies announced that it had won an Application Development and Maintenance contract from Deutsche Bank. Under the terms of agreement, HCL will provide digital solutions, systems integration, product implementation and design, build and test new applications in addition to the ongoing application maintenance and support services.
On 25 January 2016, HCL Technologies announced that it had won an IT infrastructure services contract from Alstom, a world leader in the supply of the most complete range of systems, equipment and services in the railway sector. On the same day, HCL Technologies announced the acquisition of Point to Point Limited and Point to Point Products Limited (jointly referred as Point to Point or P2P), UK's leading end-user cloud solutions design, implementation and delivery specialists.
On 8 February 2016, HCL Technologies announced the launch of an Internet of Things (IoT) Incubation Center in Redmond, Washington, USA, designed to leverage Microsoft Azure IoT Suite to accelerate enterprise IoT adoption.
On 16 February 2016, HCL Technologies announced that it had won a significant IT outsourcing contract from the Volvo Group, one of the world's leading manufacturers of commercial vehicles. Simultaneously, HCL Tech announced the acquisition of Volvo's external IT business, adding 40 new customers from the Nordics and France to its portfolio, further enhancing its market leading position in these regions.
On 22 February 2016, HCL Technologies and Symantec Corporation, the global leader in cyber security, announced their plan to expand their existing partnership to help enterprises in areas of Cloud Security, Cyber Threats and Forensic Solutions. On 2 March 2016, HCL Technologies announced that it had won a five year Next-Generation Information Technology Outsourcing contract from Husqvarna AB, a leading manufacturer of outdoor power products including robotic mowers, garden tractors, chainsaws and trimmers.
On 1 April 2016, HCL Technologies announced an agreement to acquire (through demerger) all of the business of Geometric Limited, except for the 58% stake that Geometric owns in the joint venture 3 DPLM Software Solutions Ltd. with Dassault Systemes. The swap ratio for the merger was fixed at 10 equity shares of Rs. 2 each of HCL Tech for every 43 equity shares of Geometric of Rs 2. each as on the record date. Geometric is one of India's leading PLM consulting, mechanical engineering and manufacturing engineering services providers.
On 8 June 2016, HCL Technologies announced that it has signed partnerships with two leading automotive solution providers Movimento and Rightware to expand its offerings for the fast-growing smart vehicle ecosystem. On 17 June 2016, HCL Technologies announced that it had signed a strategic IT partnership contract with LeasePlan, a global fleet management and driver mobility company of Dutch origin. Under the terms of agreement, HCL will create Group Competency in collaboration with LeasePlan Information Services to provide IT solutions in various domains such as core leasing platforms, business intelligence and data warehousing solutions, enterprise IT solutions, and application development & maintenance services.
On 1 September 2016, HCL Technologies announced that it has entered into a partnership agreement with Mesosphere, a datacenter infrastructure and container orchestration company. The partnership combines Mesosphere's Datacenter Operating System (DC/OS) with HCL's unique Next-Gen IT & Operations capabilities to deliver a unified operational experience and achieve efficient resource utilization for clients.
On 14 September 2016, HCL Technologies announced that it has won a contract to provide application management services to Western Australia's leading energy provider, Synergy. On 21 October 2016, HCL Technologies announced that it had entered into an agreement to acquire Butler America Aerospace, LLC (Butler Aerospace), a provider of engineering, design services and aftermarket engineering services to US Aerospace and Defense customers.
On 24 January 2017, HCL Technologies announced that Swiss financial services company UBS AG has renewed its finance operations services contract with the company for three and half years. On 20 March 2017, HCL Technologies announced that it has been chosen as the strategic IT services provider to the Volvo Ocean Race, the world's longest professional sporting event.
On 17 April 2017, HCL Technologies announced that Singapore Exchange has renewed its IT services contract with the company for five years. Expanding the scope from the earlier year 2010 engagement covering IT infrastructure, data center services and IT management, the new contract includes transformational IT services in a managed services construct - spanning IT infrastructure, end-user computing, data center, cloud services, workplace transformation, managed networks, enterprise security and GRC.
On 24 April 2017, HCL Technologies announced an agreement to acquire US based Urban Fulfillment Services, LLC, a provider of mortgage business process & fulfilment services. On 18 May 2017, HCL Technologies announced that it has joined the Duck Creek Global Alliance Program. As a Delivery Partner of Duck Creek Technologies' Global Alliance Program, HCL will provide customers with industry-leading application maintenance and technical support solutions to reduce time, risk, and costs during implementation and throughout the lifecycle of the deployed software.
On 20 June 2017, HCL Technologies announced the launch of its Next Generation Research Platform (NGRP), a pre-competitive drug-discovery ecosystem built with open standards. This Platform will provide research scientists with a collaborative ecosystem, greater computational resources, and the ability to mine research data to make more informed scientific decisions, while improving productivity by automating and eliminating manual administrative tasks.
On 29 August 2017, HCL Technologies announced the opening its new delivery centre in Gothenburg, Sweden. The new centre will be a key hub in HCL's global delivery network, providing cutting-edge transformational IT services as part of the global shared services model. In addition, the Gothenburg office will also become HCL's global headquarters for its mainframe services and automotive centre of excellence.
On 5 September 2017, HCL Technologies agreed to acquire ETL Factory Limited, doing business as Datawave, a UK-based company that has created an innovative data automation platform which enables enterprise customers execute large scale, complex data-migration and data-integration projects in a leaner, faster and smarter way. The flagship product Datawave won the Informatica Innovation Award and is also extendable to other platforms, including big data.
On 6 September 2017, HCL Technologies (HCL) announced a new strategic partnership with Alpha Insight, an intelligent products and solutions company headquartered in London, UK, with industry leading expertise in Business Flow Monitoring and Operational Intelligence. The transaction, which includes purchase of select assets, bolsters HCL's DRYiCE Platform and its positioning as an Enterprise A.I Foundation.
On 30 October 2017, HCL Technologies (HCL) announced collaboration with Red Hat, the world's leading provider of open source solutions, to offer HCL Application Platform-as-a-Service (PaaS) services to enterprise customers globally. On 14 November 2017, HCL Technologies (HCL) announced that it had won a five-year IT infrastructure services contract from Jardine Lloyd Thompson Group (JLT), one of the world's leading providers of insurance, reinsurance and employee benefits related advice, brokerage and associated services.
On 5 December 2017, HCL Technologies (HCL) announced that it has entered into a strategic partnership with Siemens on Industry 4.0 solutions, with a strategic collaboration on the Siemens Industry Software Suite. The global partnership with Siemens on Mindsphere, a cloud-based open Internet of Things (IoT) operating system, comprises technology, application development, connectivity solutions, system integration and go-to-market strategy.
In January 2018,HCL signed a global reseller agreement with SAP SE where SAP will resell the HCL next-generation maintenance,repair and overhaul solution under the brand name of SAP Enterprise Asset Management(SAP EAM).The company was also identified as one of the strategic partners by SAP in its global partner network to drive IoT business. The company has been awarded Best RPA Implementation in Supply Chain Management at Asia Outsourcing Leadership Awards 2018.
As on 31 March 2018,the company has 94 subsidiaries and 9 associate companies under its roof.
During the year 2018-19, the Company, through its step-down wholly-owned subsidiary HCL America Inc., acquired Telerx Marketing, Inc., a Delaware company. Pursuant to this acquisition, Telerx Marketing, Inc. and all its subsidiaries became the wholly-owned stepdown subsidiaries of the Company with effect from April 06, 2018. The Company, through its step-down wholly-owned subsidiary HCL America Inc., entered into a Joint Venture agreement dated April 12, 2018 with Sumeru Equity Partners, a technology and growth-focused private equity firm. In terms of the said JV agreement, 80% of the shareholding in the JV company named HCL Technologies SEP Holdings Inc., is held by HCL America Inc., 19.50% is held by Sumeru Equity Partners and the balance 0.5% is held by CEO of Actian Corporation. The JV Company had a wholly-owned subsidiary, Octavian Acquisition Corp., which ultimately acquired 100% stake in Actian Corporation. Pursuant to this acquisition, Actian Corporation and its all subsidiaries became the step-down subsidiaries of the Company with effect from July 17, 2018. The Company, through its step-down wholly-owned subsidiary HCL Technologies Germany GmbH, acquired Honigsberg & Duvel Datentechnik GmbH, an IT and engineering service provider headquartered in Wolfsburg,
Germany. Pursuant to this acquisition, Honigsberg & Duvel Datentechnik GmbH and all its subsidiaries became the wholly-owned step-down subsidiaries of the Company with effect from October 2, 2018.
During the year 2018-19, Pursuant to the Merger Agreement dated April 12, 2018, Octavian Acquisition Corp. was merged with and
into its wholly-owned subsidiary Actian Corporation, upon completion of the acquisition of Actian Corporation. HCL Mortgage Holdings, LLC, a Delaware company, was voluntarily dissolved during the year. Ingres Canada Corporation, a subsidiary of Actian
Corporation, became the step-down wholly-owned subsidiary of the Company pursuant to the acquisition of Actian Corporation. However, since it was not in operation and was therefore voluntarily dissolved during the year.
Pursuant to the stock transfer agreements executed between HCL America Inc. and HCL Technologies UK Limited, wholly-owned step-down subsidiaries of the Company, the entire shareholding of HCL Italy SRL and HCL Great Britain Limited was transferred from HCL America Inc. to HCL Technologies UK Limited. HCL had entered into a joint venture agreement with DXC Technology (DXC) in July 2015 pursuant to which a joint venture company namely CeleritiFinTech Limited was formed, in which the Company held 51% stake through HCL Technologies UK Limited, a wholly owned step-down subsidiary of the Company and the balance stake was held by DXC. CeleritiFinTech Italy S.r.l was incorporated as a wholly-owned subsidiary of CeleritiFinTech Limited. The joint venture arrangement was discontinued w.e.f. September 30, 2017 and the Company formed a new arrangement (IP Partnership) with DXC. Pursuant to the termination of the JV agreement, the 51% stake held by HCL Technologies UK Limited in CeleritiFinTech Italy S.r.l was transferred to DXC.
As on 31 March 2019, the Company has 133 subsidiaries and 8 associate companies.
During the FY 2019-20,the company has launched a dedicated HCL Microsoft Business Unit focused on Microsoft Technologies.
As on 31 March 2020,the company has 137 subsidiaries and 11 associate companies under its roof.
During FY 2019-20, the Company, through its step-down wholly owned subsidiary, HCL America Inc., acquired Strong Bridge Holdings, Inc. and pursuant to said acquisition, Strong Bridge Holdings, Inc and its subsidiaries have become the wholly owned step-down subsidiaries of the Company w.e.f. April 1, 2019. The Company signed an agreement with IBM Corporation, USA for asset purchase of IBM's seven software products for an aggregate amount of USD 1.8 billion; and the said transaction was completed on June 30, 2019. The Company acquired Sankalp Semiconductor Pvt. Ltd., a company incorporated in India and pursuant to this acquisition, ankalp Semiconductor Pvt. Ltd. and all the subsidiaries became the step-down subsidiaries of the Company w.e.f. October 10, 2019.
As on March 31, 2020, the Company has 137 subsidiaries and 11 associate companies.
As on March 31, 2021, the Company has 140 subsidiaries and 11 associate companies.
The Company's step-down wholly owned subsidiary, HCL Australia Services Pty. Ltd., acquired DWS Limited (DWS), a public company listed on the ASX, the Australian Securities Exchange. Pursuant to this acquisition, DWS and all its subsidiaries have become step-down wholly owned subsidiaries of the Company with effect from January 5, 2021..
The Company acquired asset carve-out of the product and services business that comprises of the Self-Optimizing Network (SON) from Cisco Systems Inc., a company incorporated in California, which was completed on October 25, 2020.
In February 2021, HCL has signed a five-year Digital Workplace Services Agreement with Airbus. HCL will establish a modernized digital workplace to enhance the user experience and service quality for the majority of Airbus employees globally.
During FY 2020-21, HCL Technologies Angola (SU), LDA., a private limited liability company, was incorporated as a step-down wholly owned subsidiary of the Company. HCL Technologies S.A.C., a Corporation was incorporated as a step-down wholly owned subsidiary of the Company.
The Scheme providing for the amalgamation of four direct / step-down wholly owned subsidiaries of the Company namely, HCL Eagle Limited, HCL Comnet Limited, HCL Technologies Solutions Limited and Concept2Silicon Systems Private Limited, with and into the
Company, was sanctioned by the Hon'ble National Company Law Tribunal, New Delhi vide its Order dated December 12, 2019 along with its Modification Order dated January 23, 2020 and certified copy of the said Order was filed with the Registrar of Companies on March 13, 2020. Accordingly, the Scheme became effective from July 13, 2020 i.e. the date from which the certified copies of orders of both the jurisdictional Tribunals were filed with the Registrar of Companies. The Appointed Date of the Scheme was April 1, 2019.
During financial year March 31, 2022, the Company's step-down wholly owned subsidiary, HCL Technologies Germany GmbH acquired 51% stake in GBS IT w.e.f. January 5, 2022 through a Joint Venture (JV) agreement, with Deutsche ApoBank, the largest cooperative primary bank in Germany. The Company's step-down wholly owned subsidiary, HCL Hungary Kft., has w.e.f. April 2, 2022, acquired 100% stake in Starschema, a LLP incorporated in Hungary.
As on March 31, 2022, the Company has 120 subsidiaries and 8 associate companies.
During FY 2021-22, new step-down wholly owned subsidiaries of the Company were incorporated like HCL Technologies Costa Rica Sociedad De Responsabilidad Limitada, HCL Technologies Bahrain W.L.L, HCL Technologies Slovakia and HCL Technologies Morocco Limited.
HCL Technologies Ltd
Directors Reports
Dear Members,
Your Directors have immense pleasure in presenting the Thirtieth Annual
Report of HCL Technologies Limited ("HCL" or the "Company") together
with the Audited Financial Statements for the financial year ended March 31,2022.
1. FINANCIAL RESULTS
Key highlights of the financial results of your Company prepared as per
the Indian Accounting Standards ("Ind AS") for the financial year ended March
31, 2022 are as under:
( Rs. in crores)
| Particulars |
Consolidated |
Standalone |
|
Financial Year ended |
Financial Year ended |
|
March 31, 2022 |
March 31, 2021 |
March 31, 2022 |
March 31, 2021 |
| Revenue from operations |
85,651 |
75,379 |
40,638 |
35,673 |
| Other income |
1,067 |
927 |
880 |
965 |
| Total Income |
86,718 |
76,306 |
41,518 |
36,638 |
| Total Expenses |
69,766 |
60,453 |
28,250 |
24,228 |
| Profit before tax |
16,951 |
15,853 |
13,268 |
12,410 |
| Tax Expense |
3,428 |
4,684 |
2,394 |
3,667 |
| Profit for the year |
13,523 |
11,169 |
10,874 |
8,743 |
| Other comprehensive income |
757 |
758 |
277 |
520 |
| Total comprehensive income for the year |
14,280 |
11,927 |
11,151 |
9,263 |
| Earnings per share of f2 each |
|
|
|
|
| Basic (in Rs.) |
49.77 |
41.07 |
40.10 |
32.22 |
| Diluted (in Rs.) |
49.77 |
41.07 |
40.09 |
32.22 |
2. BUSINESS OVERVIEW AND STATE OF AFFAIRS
The Company's enterprise strategy framework helps clients reinvent the
customer experience, modernize the digital core, drive continuous innovation and develop
comprehensive cloud culture. The Company is focused on growing its share of the large and
growing target addressable market for technology services and products.
The Company's three business segments - IT and Business Services
("ITBS"), Engineering and R&D Services ("ERS"), and Products &
Platforms ("P&P") enable it to maintain forward momentum, sustain an upward
business trajectory, and keep pace with digital demands of a vast and varied client base.
The Company also has a growing focus on helping companies on their journey to Cloud.
ITBS enables global enterprises to transform their businesses through
offerings in applications, infrastructure, digital process operations and next-generation
digital transformation solutions. ERS offers engineering services and solutions in
asset-intensive and asset-light industries, with a focus on product, digital and data
engineering. P&P provides modernized software products to global clients for their
technology and industry-specific requirements.
Through its cutting-edge co-innovation labs, global delivery
capabilities and broad global network, the Company delivers holistic services in various
industry verticals, categorized as Financial Services, Manufacturing, Technology &
Services, Telecom & Media, Retail & CPG, Life Sciences & Healthcare and Public
Services.
The Company maintains a robust strategic alliance ecosystem through
which it develops new and differentiated IP / solutions, as well as provides systems
integration and managed services.
On a consolidated basis, the Company's revenue from operations was
f85,651 crores in the financial year under review, as against f75,379 crores in the
previous financial year. The profit for the financial year under review was f13,523
crores, as against f11,169 crores in the previous financial year.
On a standalone basis, the Company's revenue from operations was
f40,638 crores in the financial year under review, as against f35,673 crores in the
previous financial year. The profit for the financial year under review was f10,874
crores, as against f8,743 crores in the previous financial year.
The state of affairs of the Company is presented as part of the
Management Discussion and Analysis Report forming part of this Annual Report.
3. DIVIDEND
Your Directors have declared the following dividends during the
Financial Year ("FY") under review:
| S. No. |
Dividend declared during FY 2021-22 |
Date of Declaration |
Rate of Dividend per Share (face value of 12
each) |
Dividend (1 in crores)* |
| 1 |
1st Interim Dividend |
April 23, 2021 |
16.00** |
4,342 |
| 2 |
2nd Interim Dividend |
July 19, 2021 |
6.00 |
1,628 |
| 3 |
3rd Interim Dividend |
October 14, 2021 |
10.00 |
2,714 |
| 4 |
4th Interim Dividend |
January 14, 2022 |
10.00 |
2,708 |
|
|
|
Total |
11,392 |
Notes:
*The dividend is before deduction of tax at source by the Company. Tax
deducted at source was approx. 1.1,185 crores.
**Includes a dividend of 110/- per equity share in recognition of the
Company's milestone, crossing the $10B mark in revenue during FY 2020-21.
The financial results for the quarter and year ended March 31, 2022
were approved by the Board of Directors in its meeting held on April 20-21,2022. The Board
did not recommend final dividend for the financial year ended March 31, 2022. In the said
meeting, the Board declared an interim dividend of 118/- per share for FY 2022-23.
4. TRANSFER TO RESERVES
No amount was transferred to the General Reserve during the financial
year under review.
5. SHARE CAPITAL
During the financial year under review, the Company has not issued any
equity shares. As on March 31,2022, the Authorized share capital of the Company was
1603,40,00,000/- divided into 301,70,00,000 equity shares of face value of 12 each.
The Issued, Subscribed and Paid-up equity share capital of the Company
as on March 31, 2022 was 1542,73,30,192/- divided into 271,36,65,096 equity shares of face
value of 12 each.
6. USD DENOMINATED UNSECURED NOTES BY WHOLLY OWNED SUBSIDIARY
During FY 2020-21, HCL America Inc., a step-down wholly owned
subsidiary of the Company incorporated under the laws of California, had issued USD 500
million fixed rate, senior unsecured notes ("Notes"), bearing interest at the
rate of 1.375% per annum. The Notes were rated "A-" by S&P and are listed on
the Singapore Exchange Securities Trading Limited. The Notes will mature in March, 2026.
The Notes have an unconditional and irrevocable guarantee from the
Company. The Company's aggregate potential liability under the guarantee is capped at USD
525 million which is 105% of the total aggregate principal amount of the Notes outstanding
from time to time. The Corporate Guarantee is being treated as "Contingent
Liability" for the Company.
7. MANAGEMENT DISCUSSION AND ANALYSIS REPORT
The Management Discussion and Analysis Report in terms of Regulation
34(2) of the SEBI (Listing Obligations and
Disclosure Requirements) Regulations, 2015 (the "Listing
Regulations"), is attached and forms part of this Annual Report.
8. ACQUISITIONS
Gbs-Gesellschaft fur Banksysteme GmbH
During the financial year ended March 31, 2022, the Company's step-down
wholly owned subsidiary, HCL Technologies Germany GmbH acquired 51% stake in Gbs-
Gesellschaft fur Banksysteme GmbH ("GBS IT") w.e.f. January 5, 2022 through a
Joint Venture ("JV") agreement, with Deutsche Apotheker- und Arztebank eG
("apoBank"), the largest cooperative primary bank in Germany. GBS IT is an IT
consulting company offering services of IT transformation, IT migration, system
integration & development, application management and consulting. The balance 49%
stake is held by the apoBank.
Starschema Kereskedelmi es Szolgaltato Korlatolt Felelossegu Tarsasag
The Company's step-down wholly owned subsidiary, HCL Hungary Kft., has
w.e.f. April 2, 2022, acquired 100% stake in Starschema Kereskedelmies Szolgaltato
Korlatolt Felelossegu Tarsasag ("Starschema"), a limited liability company
incorporated in Hungary. Starschema is one of the leading data engineering services firms
in Eastern Europe with delivery presence in Hungary and some part of the United States.
9. SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES
As on March 31,2022, the Company has 120 subsidiaries and 8 associate
companies within the meaning of Sections 2(87) and 2(6) of the Companies Act, 2013
("Act") respectively. During the financial year under review, there has been no
material change in the nature of business of the subsidiaries.
As per the first proviso to Section 129(3) of the Act, a statement
containing salient features of the financial statements of the Company's subsidiaries,
associates and joint ventures in Form AOC-1 shall forms part of this Annual Report.
In accordance with the provisions of Section 136 of the Act and
Regulation 46 of the Listing Regulations, the standalone and consolidated financial
statements of the Company along with relevant documents for FY 202122 would be available
on the website of the Company at https://www.hcltech.com/investors/results-reports .
The financial statements in respect of the subsidiaries for FY 2021-22 would also be
available at the Company's website at https://www.hcltech.com/investors/subsidiaries-financials .
Incorporation of new Subsidiaries during the financial year under
review
The following new step-down wholly owned subsidiaries of the Company
were incorporated during FY 2021-22 -
1. HCL Technologies Costa Rica Sociedad De Responsabilidad Limitada
(incorporated under the laws of Costa Rica).
2. HCL Technologies Bahrain W.L.L (incorporated under the laws of
Bahrain).
3. HCL Technologies Slovakia (incorporated under the laws of Slovakia).
4. HCL Technologies Morocco Limited (incorporated under the laws of
Morocco).
Subsidiaries merged / closed during the financial year under review
The Company has subsidiaries / branches in various countries. Due to
certain business reasons like acquisitions, rebadging, etc. there are multiple entities
(subsidiaries/ branches) in some countries. The Company's endeavour is to achieve
organisational efficiency by optimising resources and managing costs. Accordingly, after
taking into consideration the business aspects, local laws and regulations, etc. the
Company takes appropriate actions for internal restructuring by integrating businesses
amongst subsidiaries / branches so as to reduce the number of entities.
In view of the above, the following step-down wholly owned subsidiaries
of the Company were merged / closed during FY 2021-22 -
1. 14 subsidiaries including step-down subsidiaries (all incorporated
in Germany) of Honigsberg & Duvel Datentechnik GmbH ("H&D"), merged with
and into H&D (incorporated in Germany), in the following manner:
• 4 step-down wholly owned subsidiaries of H&D merged with
their immediate parent company viz. H&D IT Automotive Services GmbH, wholly owned
subsidiary of H&D.
• 1 step-down wholly owned subsidiary of H&D merged with its
immediate parent company viz. CATIS GmbH, wholly owned subsidiary of H&D.
• Post-merger of the aforesaid 5 subsidiaries with their immediate
parents, both these parent companies along with other 7 subsidiaries of H&D merged
with and into H&D.
The aforesaid mergers were approved by the appropriate authorities in
Germany on April 1, 2021 and the mergers were effective from January 1,2020.
2. H&D (incorporated in Germany), merged with and into HCL
Technologies Germany GmbH (incorporated in Germany). The said merger was approved by the
appropriate authorities in Germany on April 6, 2021 and the merger was effective from
January 1, 2020.
3. HCL GmbH (incorporated in Germany), was merged with and into HCL
Technologies Germany GmbH (incorporated in Germany). The said merger was approved by the
appropriate authorities in Germany on April 6, 2021 and the merger was effective from
April 1, 2020.
4. Geometric SAS (incorporated in France) was merged with and into HCL
Technologies France SAS (incorporated in France), w.e.f. April 1,2021.
5. PowerTeam LLC (incorporated in Minnesota, USA), was merged with and
into HCL America Inc. (incorporated in California, USA), w.e.f. May 11,2021.
6. Geometric SRL (incorporated in Romania), was merged with and into
HCL Technologies Romania SRL (incorporated in Romania), w.e.f. June 10, 2021.
7. CeleritiFinTech Australia Pty. Limited (incorporated in Australia)
was voluntarily dissolved on December 4, 2021.
8. Pervasive Software Inc. (incorporated in Delaware, USA), was merged
with and into Actian Corporation (incorporated in Delaware, USA), w.e.f. December 28,
2021.
9. Versant Software LLC (incorporated in California, USA), was merged
with and into Actian Corporation (incorporated in Delaware, USA), w.e.f. December 28,
2021.
10. HCL Software Limited, formerly "HCL Foundation", (incorporated
in India) was voluntarily struck off on March 2, 2022.
11. C3i (UK) Limited (incorporated in UK) was voluntarily dissolved on
March 29, 2022.
Closure of Subsidiary after the close of the financial year under
review
1. Point to Point Limited (incorporated in UK), was voluntarily
dissolved on April 5, 2022.
10. MATERIAL CHANGES AND COMMITMENTS AFFECTING FINANCIAL POSITION
BETWEEN THE END OF THE FINANCIAL YEAR AND DATE OF THE REPORT
There have been no material changes and commitments, which affect the
financial position of the Company, that have occurred between the end of the financial
year to which the financial statements relate and the date of this Report.
11. DIRECTORS AND KEY MANAGERIAL PERSONNEL
The composition of the Board of Directors is in accordance with the
provisions of Section 149 of the Act and Regulation 17 of the Listing Regulations, with an
optimum combination of Executive Director, Non-Executive Non-Independent Directors,
Independent Directors and Women Directors.
Details of the composition of the Board of Directors, appointments /
re-appointments during the financial year under review, director retiring by rotation and
details of declaration by Independent Directors have been provided in the Corporate
Governance Report which forms part of this Annual Report.
12. NUMBER OF MEETINGS OF THE BOARD
During the financial year under review, six meetings of the Board of
Directors were held. The details of the meetings are provided in the Corporate Governance
Report which forms part of this Annual Report.
13. BOARD COMMITTEES
The Company has the following Board Committees:
1. Audit Committee
2. Nomination and Remuneration Committee
3. Stakeholders' Relationship Committee
4. Risk Management Committee
5. Corporate Social Responsibility Committee
6. Finance Committee
7. ESG & Diversity Equity Inclusion Committee
Details of the composition of the Committees and changes therein, terms
of reference of the Committees, attendance of Directors at meetings of the Committees and
other requisite details are provided in the Corporate Governance Report which forms part
of this Annual Report.
14. FAMILIARIZATION PROGRAMME
The details of the familiarization programme have been provided under
the Corporate Governance Report which forms part of this Annual Report.
15. BOARD EVALUATION
The Annual Performance Evaluation of the Board, its Committees, the
Chairperson of the Board and the individual directors was undertaken by the Board of
Directors / Independent Directors in terms of the provisions of the Act and the Listing
Regulations. The evaluation was carried out in terms of the framework and criteria of
evaluation as approved by the Nomination and Remuneration Committee of the Company. The
process and criteria of evaluation is explained in the Corporate Governance Report which
forms part of this Annual Report.
16. STATUTORY AUDITORS AND STATUTORY AUDITORS' REPORT
M/s. B S R & Co. LLP, Chartered Accountants (ICAI Firm Registration
No. 101248W/W-100022) were appointed as the Statutory Auditors of your Company in the
Twenty-Seventh Annual General Meeting ("AGM") of the Company held on August 6,
2019 for a term of five consecutive years from the conclusion of the said AGM till the
conclusion of the Thirty- Second AGM to be held in the year 2024.
There are no qualifications, reservations, adverse remarks or
disclaimer made by M/s. B S R & Co. LLP, Statutory Auditors in their report for FY
2021-22. The Statutory Auditors have not reported any incident of fraud to the Audit
Committee of the Company during the financial year under review.
17. SECRETARIAL AUDITORS AND SECRETARIAL AUDIT REPORT
In terms of the provisions of the Section 204 of the Act, M/s.
Chandrasekaran Associates, Practicing Company Secretaries were appointed as the
Secretarial Auditor of the Company for FY 2021-22. The report of the Secretarial Auditor
is enclosed as Annexure 1 to this Report. The report is self-explanatory and does not call
for any further comments. There are no qualifications, reservations, adverse remarks or
disclaimer made by the Secretarial Auditor in their report.
18. MAINTENANCE OF COST RECORDS
The maintenance of cost records and requirement of cost audit as
prescribed by the Central Government under the provisions of the Section 148(1) of the Act
are not applicable to the business activities carried out by the Company. Accordingly,
such cost accounts and records are not maintained by the Company.
19. ANNUAL RETURN
Pursuant to the provisions of the Sections 92(3) and 134(3) (a) of the
Act, the Annual Return of the Company for FY 2021-22 is available on the website of the
Company at https://www.hcltech.com/investors/results-reports .
20. POLICY ON DIRECTORS' APPOINTMENT AND REMUNERATION
The Nomination and Remuneration Committee formulates the criteria for
determining the qualifications, positive attributes and independence of directors in terms
of its charter. In evaluating the suitability of individual Board members, the Committee
takes into account factors such as educational and professional background, general
understanding of the Company's business dynamics, professional standing, personal and
professional ethics, integrity and values, willingness to devote sufficient time and
energy in carrying out their duties and responsibilities effectively.
The Committee also assesses the independence of directors at the time
of their appointment / re-appointment as per the criteria prescribed under the provisions
of the Act, the rules made thereunder and the Listing Regulations.
The Remuneration Policy for Directors, Key Managerial Personnel and
other employees is provided in the Corporate Governance Report which forms part of this
Annual Report.
21. RISK MANAGEMENT POLICY
The Board of Directors of the Company have formed a Risk Management
Committee to inter-alia assist the Board in overseeing the responsibilities with
regard to identification, evaluation and mitigation of operational, strategic and external
environmental risks. In addition, the Audit Committee is also empowered to oversee the
areas of risks and controls.
The Company has developed and implemented a Risk Management Policy that
ensures appropriate management of risks in line with its internal systems and culture.
22. INTERNAL FINANCIAL CONTROL SYSTEMS AND THEIR ADEQUACY
The Company's internal financial control systems are commensurate with
its size and nature of its operations and such internal financial controls are adequate
and are operating effectively. The Company has adopted policies and procedures for
ensuring orderly and efficient conduct of the business. These controls have been designed
to provide reasonable assurance regarding recording and providing reliable financial and
operational information, adherence to the Company's policies, safeguarding of assets from
unauthorized use and prevention and detection of frauds and errors, the accuracy and
completeness of the accounting records, and the timely preparation of reliable financial
disclosures.
23. SIGNIFICANT AND MATERIAL ORDERS
There are no significant and material orders passed by the regulators
or courts or tribunals impacting the going concern status and Company's operations in
future.
24. PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS
The particulars of loans, guarantees and investments have been
disclosed in the financial statements which forms part of this Annual Report.
25. TRANSACTIONS WITH RELATED PARTIES
The particulars of transactions entered into with the related parties
referred to in Section 188(1) and applicable rules of the Act, have been given in Annexure
2 to this Report in Form AOC-2. The Company also has in place a ‘Related Party
Transaction Policy', which is available on the website of the Company at https://www.hcltech.com/investors/governance -
policies/rptpolicypdf.
26. CORPORATE SOCIAL RESPONSIBILITY
The Company contributes progressively to the socio-economic and
environmental advancement of the planet with ‘Corporate Social Responsibility'
("CSR") at the very core of its existence. To meet its goals, the Company drives
its corporate social responsibility agenda through its CSR arm, HCL Foundation, a public
charitable trust.
The CSR Committee of the Company is inter-alia responsible for
formulating, recommending and monitoring the CSR Policy of the Company which contains the
approach and direction given by the Board of Directors, and includes guiding principles
for selection, implementation and monitoring of activities as well as formulation of the
annual action plan.
The composition of the CSR Committee, a brief outline of the CSR Policy
of the Company and the initiatives undertaken by the Company on CSR activities during the
financial year under review are set out in Annexure 3 to this Report in the format as
prescribed under the Companies (Corporate Social Responsibility Policy) Rules, 2014.
The CSR projects as approved by the Board of Directors for FY 2022-23
are available on the website of the Company at https://www.hcltech.com/investors/corporate -
social-responsibilitv-hcl.
27. DIVIDEND DISTRIBUTION POLICY
The Company has formulated and published a Dividend Distribution Policy
which provides for the circumstances under which the members may / may not expect
dividend, the financial parameters, internal and external factors, utilization of retained
earnings, parameters regarding different classes of shares, etc. The provisions of this
Policy are in line with Regulation 43A of the Listing Regulations, and the Policy is
available on the website of the Company at https://www.hcltech.com/investors/governance-policies/ddppdf .
28. UNCLAIMED DIVIDENDS AND TRANSFER TO INVESTOR EDUCATION AND
PROTECTION FUND
Pursuant to the provisions of Section 124 of the Act, the dividend
amounts which have remained unpaid or unclaimed for a period of seven years from the date
of transfer to unpaid dividend account have been transferred by the Company to the
Investor Education and Protection Fund ("IEPF") established by the Central
Government pursuant to Section 125 of the Act. The details of the unpaid / unclaimed
dividend amount which will be transferred to IEPF in the subsequent years are given in the
Corporate Governance Report which forms part of this Annual Report.
Further, according to the IEPF Authority (Accounting, Audit, Transfer
and Refund) Rules, 2016, the shares in respect of which dividends have not been paid or
claimed by the members for seven consecutive years or more are also required to be
transferred to the demat account created by the IEPF Authority. Accordingly, during the
financial year under review, the Company has transferred 8,509 equity shares to the demat
account of the IEPF Authority. The details of such shares are available on the website of
the Company at https://www.hcltech.com/investors/iepf-details .
29. DEPOSITS
The Company has no deposits and also has not accepted any deposits from
the public during the financial year under review.
30. CORPORATE GOVERNANCE REPORT
The Corporate Governance Report in terms of Regulation 34(3) of the
Listing Regulations along with the Statutory Auditors' certificate is attached and
forms part of this Annual Report.
31. BUSINESS RESPONSIBILITY AND SUSTAINABILITY REPORT
The Listing Regulations mandate the inclusion of Business
Responsibility Report ("BRR") as part of the Annual Report of the Company to
describe the initiatives taken by the companies in regard to environmental, social and
governance responsibilities. However, as per amended Regulation 34(2) of the Listing
Regulations, the requirement of submitting a business responsibility report shall be
discontinued after FY 2021-22 and thereafter, with effect from FY 2022-23, the top one
thousand listed entities based on market capitalization shall submit a Business
Responsibility and Sustainability Report ("BRSR") in the format as specified by
the SEBI from time to time. Further, even for FY 2021-22, the top one thousand listed
entities may voluntarily submit a BRSR in place of the mandatory BRR.
In compliance with this regulation, the Company has prepared a BRSR for
FY 2021-22 on voluntarily basis instead of BRR and the same forms part of this Annual
Report.
32. INSIDER TRADING REGULATIONS
Pursuant to the provisions of the SEBI (Prohibition of Insider Trading)
Regulations, 2015 (as amended from time to time), the Company has adopted a Code of
Conduct on Prohibition of Insider Trading ("Insider Trading Code") and a Code of
Practices and Procedures for fair disclosure of Unpublished Price Sensitive Information
("Fair Disclosure Code"). The Fair Disclosure Code is available on the website
of the Company at https://www.hcltech.com/investors/governance -
policies/fair-disclosure-codepdf.
33. AWARDS AND RECOGNITIONS
Your Company relentlessly pursues excellence and is delighted to
receive phenomenal share of recognitions and awards this year, not only from the media,
but also from analysts, governing bodies, academic institutions, partners and even
customers. Some of the key honors received by the Company during the year include:
Awards
1. The Company was ranked #1 in the world in Professional Services
sector in Forbes ‘World's Best Employers' List 2021. It featured among the Top 5
multinationals headquartered in India, across all sectors and amongst Global top 100 for
the second consecutive year.
2. The Company was awarded ‘Corporate Citizen of the Year 2021' by
Economic Times for being a flag-bearer of social change and champions of good governance.
3. The Company was ranked #1 in ESG ratings by Edelweiss. It had the
highest overall score among India's Top NSE 100 companies.
4. The Company entered the Guinness World Record for #CodeForCovid19
for conducting the largest Healthcare Technology Solution Competition.
Recognitions
1. Executive Recognitions
• Mr. Shiv Nadar was honored with Global Leadership Award, 2021 by
US India Business council for distinguished leadership and the seminal role that he has
played in advancing the strategic and economic partnership between India and the United
States of America.
• Mr. Shiv Nadar was honored with the prestigious Philanthropist
of the year, 2021 award by Indo- French Chamber of Commerce and Industry.
• Mr. Shiv Nadar was honored with Eminent Engineer Award, 2021 by
the Engineering Council of India for his pioneering role in the field of engineering,
business, and philanthropy.
• Ms. Roshni Nadar Malhotra was recognized among Forbes 100
‘Most Powerful Women of the World, 2021'.
• Ms. Roshni Nadar Malhotra awarded with Business ‘Today's
Most Powerful Women Award, 2021', for second year consecutively.
2. Diversity and Inclusion Recognitions
• The Company was recognized as the Best Organization for Women,
2021 by the Economic Times.
• The Company was recognized among India's Best workplaces for
Women, 2021 by Great Place to Work? Institute.
• The Company was named in the Global Gender-Equality Index, 2022
by Bloomberg.
• The Company was among the Excellence in Practice Award Winners
for Diversity & Inclusion, 2022 by Association of Talent Development (ATD).
3. Industry and Analyst Recognitions
• The Company was positioned as a Leader in the 2021 Gartner?
Magic QuadrantTM for Public Cloud IT Transformation Services.
• The Company was positioned as a Leader in the 2021 Gartner?
Magic QuadrantTM for Managed Network Services.
• The Company was positioned as a Leader in the 2021 Gartner?
Magic QuadrantTM for Data Center Outsourcing and Hybrid Infrastructure Managed Services,
Global.
• The Company was positioned as a Leader in The Forrester
Wave™: Application Modernization and Migration Services, Q3 2021.
• The Company was positioned as a Leader in the I DC MarketScape:
Worldwide Supply Chain SAP Ecosystem Services 2021 Vendor Assessment (Doc #US47537120,
March 2021).
• HCL Software positioned as a Leader in IDC MarketScape:
Worldwide Cloud Testing 2022 Vendor Assessment (Doc #US47097221, March 2021).
• The Company was positioned as a Leader in the IDC MarketScape:
Worldwide Artificial Intelligence Business Services 2021 Vendor Assessment (Doc
#US46741721, June 2021).
• The Company was positioned as a Leader in the IDC MarketScape:
Worldwide Managed Multicloud Services 2021 Vendor Assessment (Doc # US45977020, October
2021.
• The Company was positioned as a Leader in the Everest Group's
Application Transformation Services PEAK Matrix? Assessment 2021.
• The Company was positioned as a Leader in Everest Group's 5G
Engineering Services PEAK Matrix? Assessment 2021.
• HCL Software positioned as a Leader 2021 Gartner? Magic
QuadrantTM for Application Security Testing.
• The Company was positioned as a Leader in the Everest Group's IT
Managed Security Services PEAK Matrix? Assessment 2021.
• The Company was positioned as a Leader in the Everest Group's
Enterprise Quality Assurance (QA) Services PEAK Matrix? Assessment 2022.
• The Company was positioned as a Leader in Avasant's SAP S/4HANA
Services 2021-2022 RadarView™ .
• The Company was positioned as a Leader in Everest Group's
Digital Product Engineering Services PEAK Matrix? assessment 2022.
• The Company was positioned as a Leader in the 2022 Gartner?
Magic QuadrantTM for Outsourced Digital Workplace Services.
• The Company was positioned as a Leader in the 2022 Gartner?
Magic QuadrantTM for Managed Mobility Services.
34. SUSTAINABILITY
"Our guiding philosophy - ACT. PACT, IMPACT"
ACT - We at HCL understand that impact starts with us. We act in the
most responsible and sustainable manner. We ensure we use every resource efficiently to
garner the maximum value.
PACT - Working together for a sustainable future, hand in hand with our
clients, partners, communities and other stakeholders.
IMPACT - We focus on creating sustainable impact through all our
initiatives and activities.
Through active engagement with different stakeholders and also looking
through the lens of risk and responsibility, the Company has arrived at 12 material ESG
topics to focus on. More details on the material topics of the Company are available in
the Business Responsibility and Sustainability Report of the Company which forms part of
this Annual Report.
This year, the Company has also made commitment on climate change. The
aim of the Company is to limit the GHG emissions aligned to a 1.5oC
pathway by 2030 and to reach net-zero by 2040.
35. ORGANIZATION EFFECTIVENESS
Human Resources
Last two years have tested our resilience, and our Company has
demonstrated its fortitude and has emerged much stronger, together. The Company salutes
the strength and endurance of its employees in these challenging times. A commitment to
our core values has helped us build long term, value centric relationship with our clients
as well as our employees.
The Company continues its journey with proactive efforts to safeguard
the employees, minimize impact on clients, reduce financial risk, maintain supply chain
resilience and provide support to the communities lived and served around the world.
Employee Strength and Expansion
After the close of another successful year, the Company and its
subsidiaries have attained an impressive employee strength of 2,08,877 and continues to
build and support the business strategy of "Mode 1-2-3".
Our emphasis and commitment to talent localization continues. We
believe this strategy confers us competitive advantages in a tightening regulatory
environment with respect to workforce mobility. In the United States, our localization
stands at 70.9%.
The Company prides itself in employing people from different
geographies and nationalities, creating a unique fabric of values and traditions. As on
March 31, 2022, the Company employed resources from 165 nationalities and women
represented 28% of the global workforce.
The Company is revamping its internal technology interface to gauge
employee sentiment better and provide an advanced tool for on boarding & training. The
Company is using techniques such as gamification as well as AI tools to track and address
dissatisfaction levels related to work. It is also set to enhance the overall employee
experience with respect to training and onboarding.
Our "Hire to Retire" platform aims to improve the entire
employee lifecycle from recruitment, on boarding and training and right up to retirement.
To ease supply-side constraints and to have access to diversified
skills, the Company is expanding into other geographies over the next three-four quarters.
Some of the geographies that the Company is investing into source talent include countries
like Romania, Hungary, Bulgaria, Guatemala, Costa Rica and also ramping up its presence in
Vietnam, Australia, New Zealand, etc.
Talent Acquisition
The talent acquisition practices of the Company are aligned to its Mode
1-2-3 strategy. The Company has leveraged digital technologies to enhance the quality and
experience of its talent acquisition programs.
The series of initiatives are helping the Company to create a stable
workforce. Hiring freshers is a big component of the HCL talent strategy, and the Company
is looking ambitiously at onboarding higher number of freshers in FY'23 compared to FY'22.
The Company invested in all the freshers that it is recruiting in terms of providing them
the compensation visibility for five years.
Talent Development
The Company's Talent Development Centre of Excellence ("CoE")
continues to focus on creating a culture of continuous learning through its business
focused learning solutions, contributing to the vision of building a truly global
organization.
During the fiscal year, 1,45,848 employees availed 8.29 million hours
of training for enhancing their current skills and learning new skills. 68,146 unique
employees were also trained in digital skills during this period.
The vagaries posed by the Covid-19 pandemic pushed team members to work
in a virtually connected mode, further prodding talent development to rearticulate
competencies relevant to this unprecedented change. The ‘New Normal' competencies
became an integral part of the key learning solutions being deployed globally. These were
also translated into micro-learning nuggets to adequately engage the people and provide
them the necessary perspective to lead ‘Self' and ‘Team' during the trying
times.
The Company's DNA of grassroots innovation, its ingrained culture of
co-innovation, and its tradition of going far beyond what is expected to create customer
value, clearly differentiate it and gives it a distinct advantage in creating value for
businesses in the digital and connected world. The training programmes of the Company
cater to this dynamic need of its employees.
The Company has also identified employees to be trained as next
generation leaders and charter a career path in the firm. Reskilling is another area of
focus, where the Company is now able to fulfil more new roles coming in internally.
Diversity and Inclusion
In an era where disruptive innovations are creating new industries and
business models, technology, globalization, the evolving workforce & workplace
continue to shape the future of work. The Company is unwaveringly committed to be
purposefully and deliberately diverse, equitable and inclusive. The Company's Diversity,
Equity & Inclusion are at the heart of our values. The Company strongly believe that
its diversified workforce which is a culmination of 163 nationalities coming from many of
the countries in which the Company do business are an asset & are the real
‘Differentiators', providing them a fair opportunity to attain their full potential
and creating an inclusive environment translating into them being valued, treated equally
& with respect are essential components and can result in increased creativity,
productivity, and innovation leading to better business results.
The Company has made concentrated efforts to identify, acknowledge
& encourage employees from all backgrounds to be part of our global workforce with
equal opportunities of growth given to them through various platforms where the Company
enables under Diversity, Equity and Inclusion strategy. The Company make an intentional
and continuous effort to create and sustain a culture of equality, selfawareness,
authenticity and accountability in the realm of gender, cross-cultural diversity, persons
with disabilities and LGBTQ+ inclusion. Under the canopy of impressive initiatives &
platforms which drives our Diversity, Equity and Inclusion vision, the Company has created
a beautiful mosaic of different people, beliefs, experiences and innovation where everyone
has an equal shot and we all thrive and contribute to our strengths to find a common
ground for creativity and to accomplish great things.
Recognition of HCL Culture and Engagement Practices across the World
To reinforce alignment of core beliefs and actions, the Company
continues to transform its policies, processes and practices. This has further enabled and
empowered the employees, a fact that has been well recognized by various industry forums
and leading associations. Our distinctive people practices continue to win accolades
across the globe.
36. CONSERVATION OF ENERGY, RESEARCH AND DEVELOPMENT, TECHNOLOGY
ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO
Disclosures of particulars as required under Section 134(3) (m) of the
Act, read with the Companies (Accounts) Rules, 2014 to the extent applicable to the
Company, are set out in Annexure 4 to this Report.
37. DIRECTORS' RESPONSIBILITY STATEMENT
A statement of responsibility of the Directors relating to compliance
with the financial accounting and reporting requirements in respect of the financial
statements, as specified under Section 134(3)(c) of the Act, is annexed as Annexure 5 to
this Report.
38. STOCK OPTIONS PLANS
The Board of Directors of the Company with the approval of its
shareholders during the FY 2021-22 instituted the ‘HCL Technologies Limited -
Restricted Stock Unit Plan 2021'.
The details of the same has been annexed as Annexure 6 to this Report.
39. PARTICULARS OF EMPLOYEES
The information required pursuant to Section 197(12) of the Act read
with Rule 5(1) of the Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014 are given below:
A. The ratio of remuneration of each director to the median
remuneration of the employees of the Company for the financial year:
| S. No. Name of the Director |
Ratio to median remuneration of employees |
| Executive Directors |
|
| 1 Mr. Shiv Nadar, Managing Director & Chief Strategy
Officer |
- |
| 2 Mr. C. Vijayakumar, CEO & Managing Director |
- |
| Non-Executive Directors |
|
| 3 Ms. Roshni Nadar Malhotra |
9.33 |
| 4 Mr. Deepak Kapoor |
8.05 |
| 5 Mr. S. Madhavan |
9.93 |
| 6 Dr. Mohan Chellappa |
8.54 |
| 7 Ms. Nishi Vasudeva |
8.07 |
| 8 Ms. Robin Ann Abrams |
10.24 |
| 9 Dr. Sosale Shankara Sastry |
7.10 |
| 10 Mr. Shikhar Malhotra |
8.16 |
| 11 Mr. R. Srinivasan |
9.31 |
| 12 Mr. Simon John England |
7.46 |
| 13 Mr. Thomas Sieber |
8.00 |
| 14 Ms. Vanitha Narayanan |
- |
Notes:
(1) Mr. Shiv Nadar ceased to be the Director as well as Managing
Director of the Company w.e.f. July 19, 2021. Mr. C. Vijayakumar was appointed as
the Managing Director of the Company w.e.f. July 20, 2021. Since, they were the directors
of the Company for part of the year, the said information is incomparable and not
provided.
(2) The remuneration of Non-Executive Directors comprises of sitting
fees and commission paid /payable for the FY 2021-22.
(3) Ms. Vanitha Narayanan was appointed as an Additional
Director in the capacity of Non-Executive Independent director w.e.f. July 19, 2021.
Hence, the said information is incomparable and not provided.
B. The percentage increase in remuneration of each Director, Chief
Executive Officer, Chief Financial Officer, Company Secretary in the financial year:
a) Executive Directors / Chief Executive Officer
| S. No. Name of the Director |
% Increase in Remuneration in
the financial year |
| 1 Mr. Shiv Nadar Managing Director & Chief Strategy
Officer |
- |
|
| 2 Mr. C. Vijayakumar CEO & Managing Director |
Annual Compensation (FY 2021- 22 vs. FY
2020- 21 ) |
0% |
|
Long-Term Incentive for 2 year period |
|
|
(FY 2019-20 & FY 2020-21 vs. FY 2017-18
& FY 2018-19) |
0% |
Notes:
1) Mr. Shiv Nadar ceased to be the Director as well as Managing
Director of the Company w.e.f. July 19, 2021. There was no change in his
remuneration during the FY 2021-22.
2) Mr. C. Vijayakumar has been the Chief Executive Officer of the
Company He was appointed as the Managing Director of the Company w.e.f. July 20,
2021 with the designation as ‘CEO & Managing Director'. Mr. C. Vijayakumar
did not receive any remuneration from the Company, however, he received remuneration
[including a Long-Term Incentive ("LTI")] from HCL America Inc., a step-down
wholly owned subsidiary of the Company. There has been no change in his remuneration
during the FY 2021-22 except for receipt of USD 12.5 million as LTI that is paid at fixed
intervals (at the end of two years) based on the achievement of milestones /parameters
fixed by the Board. Accordingly, the payment of above lTi is for two years that ended on
March 31, 2021 viz. USD 6.25 million for FY 2019-20 & uSd 6.25 million for the FY
2020-21.
b) Non-Executive Directors
| S. No. Name of the Director |
% Increase in Remuneration in the financial
year |
| 1 Ms. Roshni Nadar Malhotra |
32.56 |
| 2 Mr. Deepak Kapoor |
35.89 |
| 3 Mr. S. Madhavan |
30.31 |
| 4 Dr. Mohan Chellappa |
31.14 |
| 5 Ms. Nishi Vasudeva |
36.62 |
| 6 Ms. Robin Ann Abrams |
14.90 |
| 7 Dr. Sosale Shankara Sastry |
8.95 |
| 8 Mr. Shikhar Malhotra |
34.63 |
| 9 Mr. R. Srinivasan |
13.53 |
| 10 Mr. Simon John England |
14.53 |
| 11 Mr. Thomas Sieber |
10.28 |
| 12 Ms. Vanitha Narayanan |
- |
Notes:
1) The remuneration of Non-Executive Directors comprises of sitting
fees and commission paid/payable for the FY 2021-22. The change in remuneration includes
any variation on account of exchange rate.
2) Ms. Vanitha Narayanan was appointed as Non-Executive Independent
Director during FY 2021-22 and therefore, the change in remuneration from the previous
financial year is not applicable.
c) Chief Financial Officer and Company Secretary
| S. No. Name of the Key Managerial Personnel |
% Increase in Remuneration in the financial
year |
| 1 Mr. Prateek Aggarwal, Chief Financial Officer |
36.15 |
| 2 Mr. Manish Anand, Company Secretary |
9.08 |
Note:
Mr. Prateek Aggarwal received remuneration from the Company as well as
from HCL America Inc., a step-down wholly owned subsidiary of the Company. Hence, the
above % has been calculated after taking into account the remuneration drawn both from the
Company as well as the said subsidiary. The change in remuneration includes any variation
on account of exchange rate.
C. The percentage increase in the median remuneration of employees in
the financial year: 11.42%.
D. The number of permanent employees on the rolls of Company: There
were 1,12,498 permanent employees on the rolls of the Company. In addition, the Company
had 96,379 number of employees on the rolls of its subsidiaries.
E. Average percentile increase already made in the salaries of
employees other than the managerial personnel in the last financial year and its
comparison with the percentile increase in the managerial remuneration and justification
thereof and point out if there are any exceptional circumstances for increase in the
managerial remuneration: The average percentile increase made in the salaries of employees
other than the managerial personnel in the last financial year was 6.85%.
F. Affirmation that the remuneration is as per the remuneration policy
of the Company: The Company affirms that the remuneration is as per the Remuneration
Policy of the Company.
40. STATEMENT OF EMPLOYEES PURSUANT TO RULE 5(2) AND 5(3) OF THE
COMPANIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014
In terms of Rule 5(2) and 5(3) of the Companies (Appointment and
Remuneration of Managerial Personnel) Rules, 2014, the list of top ten employees of the
Company in terms of the remuneration drawn in FY 2021-22 and a statement containing the
names of the employees employed throughout the financial year and in receipt of
remuneration of ?1.02 crores per annum or more and employees employed for part of the year
and in receipt of ?8.50 lacs or more per month is provided in a separate exhibit forming
part of this report. The Annual Report and the Financial Statements are being sent to the
shareholders excluding this exhibit. This exhibit is available to any shareholder for
inspection on request and is also available on the website of the Company at https://www.hcltech.com/investors/results-reports .
41. VIGIL MECHANISM / WHISTLE BLOWER POLICY
The Company has formulated and published a Whistleblower Policy to
provide vigil mechanism for employees, directors and other stakeholders of the Company to
report genuine concerns (including reporting of instances of leakage of unpublished price
sensitive information) and to ensure strict compliance with ethical and legal standards
across the Company. The provisions of this Policy are in line with the provisions of the
Section 177(9) of the Act and the Listing Regulations and the said Policy is available on
the website of the Company at https://www.hcltech.com/investors/governance -
policies/whistleblowerpolicypdf. The details of the Whistleblower Policy are provided in
the Corporate Governance Report which forms part of this Annual Report.
42. OBSERVANCE OF THE SECRETARIAL STANDARDS ISSUED BY THE INSTITUTE OF
COMPANY SECRETARIES OF INDIA
The Company complies with all applicable Secretarial Standards issued
by the Institute of Company Secretaries of India.
43. DISCLOSURE UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE
(PREVENTION, PROHIBITION AND REDRESSAL) ACT, 2013
The Company has in place a Prevention and Redressal of Sexual
Harassment at Workplace Policy in line with the requirements of Sexual Harassment of Women
at Workplace (Prevention, Prohibition and Redressal) Act, 2013. The Company has
constituted an Internal Committee for the redressal of all sexual harassment complaints.
These matters are also being reported to the Audit Committee. The details of the Policy
and the complaints are given under Corporate Governance Report and the Business
Responsibility and Sustainability Report respectively, which form part of this Annual
Report.
44. ACKNOWLEDGEMENTS
The Board wishes to place on record its appreciation of the significant
contributions made by the employees of the Company and its subsidiaries / associates. The
Company has achieved impressive growth through competence, hard work, solidarity,
cooperation and support of employees at all levels. The Board wishes to thank the
customers, vendors and other business associates for their continued support in the
Company's growth and also wishes to thank the government authorities, banks and members
for their cooperation and assistance extended to the Company.