HCL Technologies : Financial Results Updates

HCL Technologies Limited and

Subsidiaries

Unaudited Condensed Consolidated Financial Statements

For The Three and Nine Month Periods Ended December 31, 2021 and 2020

With Independent Auditors' Review Report

HCL Technologies Limited and Subsidiaries
Table of Contents
	Page
Independent Auditors' Review Report .................................................................................................	1
Unaudited Condensed Consolidated Financial Statements
Condensed Consolidated Balance Sheets ...............................................................................................	2
Condensed Consolidated Statements of Income......................................................................................	4
Condensed Consolidated Statements of Comprehensive Income.............................................................	5
Condensed Consolidated Statements of Equity........................................................................................	6
Condensed Consolidated Statements of Cash Flows ...............................................................................	8
Notes to Condensed Consolidated Financial Statements .......................................................................	10

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Gurugram - 122 002, (India)

Services

LLP

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Independent Auditors'Review Report
The Board of Directors
HCL Technologies Limited:
Report on the Financial Statements
We have reviewed the condensed consolidated	financial statements of HCL Technologies	Limited
and its subsidiaries (the 'Company'}, which comprise the condensed consolidated balance sheet as
of December 31, 2021, the related condensed	consolidated statements of income and comprehensive
income for the three and nine month periods ended December 31, 2021 and 2020, the related
condensed consolidated statements	of equity and cash flows for the nine-month periods ended
December 31 , 2021 and 2020, and	the related	notes (collectively	referred to as the condensed
consolidated financial information).
Management's Responsibility
The Company's management is responsible	for the preparation and fair presentation of the condensed
consolidated financial information in accordance	with U.S. generally accepted accounting principles;
	and maintenance of internal control sufficient
this responsibility includes the design , implementation,
to provide a reasonable basis for the preparation and fair presentation of interim financial information
in accordance with U.S. generally accepted accounting	principles.
Auditors' Responsibility
Our responsibility is to conduct our reviews in accordance with auditing standards generally accepted
in the United States of America applicable	to reviews of interim financial information.	A review of
interim financial information consists principally of applying analytical procedures and making inquiries
of persons responsible for financial and accounting matters. It is substantially less in scope than an
audit conducted in accordance with auditing standards generally accepted in the United States of
America, the objective of which is the expression of an opinion regarding the financial information.
Accordingly, we do not express such an opinion.
Conclusion

Based on our reviews, we are not condensed consolidated financial U.S. generally accepted accounting

aware of any material modifications that
information referred	to	above for it to
principles.

should be made to the be in accordance with

Report on

Condensed

Balance Sheet as

of

March 31, 2021

We have previously audited, in accordance	with auditing standards generally accepted in the United
States of America , the consolidated balance sheet as of March 31 , 2021, and the related consolidated
statements of income, comprehensive income, equity, and cash flows for the year then ended (not
presented herein); and we expressed an unmodified audit opinion on those audited consolidated
financial statements in our report dated April 23, 2021 . In our opinion, the accompanying	condensed
consolidated balance sheet of HCL Technologies Limited and its subsidiaries as of March 31, 2021 is
consistent, in all material respects, with the audited consolidated financial statements	from which it
has been derived.

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Gurugram, Haryana, India January 14, 2022

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KPMG Als'"nce and Consulting Services LlP, an Indian lim1lld

Ulbllity po/1no"'11p and a - • fltffl ol lho KPMG notwonl ol indepondenl mombor firms affillaled wflh KPMG lntam1Uonal

Cooperollve ("l(PMG lntamationar) a Swiu anllty

KPMG (Regl1!1nMI) t• partn11>hlp form w.th R111lslralion No BA-

52445) converted lnlo KPMG Au ur1nce and Consulllng Servtc:.s

LLP (a UrTUtld Uablhty P1rtnt,-hipwith LLP Reg1strat1on No M T- 0367), w,fh affocl l,om July 23, 2020

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E.l01tlu1. 1SI FJoor Apc)Uo Mils

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Mahalab tvn,, Mumbai - 400 0t

1

HCL Technologies Limited and Subsidiaries

Condensed Consolidated Balance Sheets

Amount in thousands, except share and per share data

			As of
		March 31, 2021		December 31, 2021
		(Audited)		(Unaudited)
ASSETS
Current assets
Cash and cash equivalents	$890,959	$976,417
Term deposits with banks	323,073	159,126
Deposit with corporations	662,085	548,512
Investment securities, available for sale	926,406	967,597
Accounts receivable, net	1,868,553	2,126,458
Unbilled receivable	528,123	577,276
Inventories	12,793	16,206
Other current assets	675,948	710,305
Total current assets	5,887,940	6,081,897
Deferred income taxes, net	326,277	320,175
Term deposits with banks	-	1,338
Deposit with corporations	-	13,452
Investments in affiliates	6,356	7,584
Other investments	5,745	5,839
Property and equipment, net	854,053	780,874
Operating lease right-of-use assets	327,123	297,540
Intangible assets, net	1,616,785	1,359,677
Goodwill	2,370,031	2,339,574
Other assets	600,236	611,063
Total assets (a)	$11,994,546	$11,819,013

See accompanying notes to the condensed consolidated interim financial statements.

2

HCL Technologies Limited and Subsidiaries

Condensed Consolidated Balance Sheets

Amount in thousands, except share and per share data

		As of
	March 31, 2021		December 31, 2021
	(Audited)		(Unaudited)
LIABILITIES, REDEEMABLE NON-CONTROLLING
INTERESTS AND EQUITY
Current liabilities
Current portion of finance lease liabilities	$24,746	$14,029
Current portion of operating lease liabilities	69,737	81,016
Accounts payable	320,017	377,464
Short term borrowings	61	-
Current portion of long term debt	10,798	4,449
Accrued employee costs	582,151	550,596
Contract liabilities	421,064	388,840
Income taxes payable	175,952	185,631
Other current liabilities	767,349	746,050

Total current liabilities	2,371,875		2,348,075
Long term debt	523,564	521,639
Deferred income taxes, net	20,144	15,494
Operating lease liabilities, net of current portion	240,304	189,506
Finance lease liabilities, net of current portion	19,954	16,183
Accrued employee costs	187,437	198,441
Contract liabilities	70,479	85,547
Other liabilities	68,880	57,748

Total liabilities (a)	$3,502,637	$3,432,633
Commitments and contingencies (Note 21)
Redeemable non-controlling interests	79,985	-
HCL Technologies Limited Shareholders' Equity
Equity shares, ` 2 par value, authorized 3,017,000,000
shares as of March 31, 2021, and December 31, 2021,
respectively.
Issued and outstanding 2,713,665,096 shares as of March	93,788	93,788
31, 2021, and December 31, 2021, respectively
Additional paid-in capital	412,327	413,544
Treasury Stock, at cost: Nil and 5,500,000 shares as of	-	(94,747)
March 31, 2021, and December 31, 2021, respectively.
Retained earnings	8,974,914	9,117,654
Accumulated other comprehensive loss	(1,078,358)	(1,155,322)

HCL Technologies Limited Shareholders' Equity

Non-controlling interest

Total equity

Total liabilities, redeemable non-controlling interests, and equity

8,402,671

9,253

8,411,924

$11,994,546

8,374,917

11,463

8,386,380

$11,819,013

1. Consolidated assets at March 31, 2021 and December 31, 2021 include assets of certain variable interest entities (VIEs') that can only be used to settle the liabilities of those VIEs'. Consolidated liabilities at March 31, 2021 and December 31, 2021, include liabilities of certain VIEs' for which the VIEs' creditors do not have recourse to HCL Technologies Limited and Subsidiaries (See Note 8).
   See accompanying notes to the condensed consolidated interim financial statements.

3