Audited Financial Statements 31 December 2016 Important Notice The attached financial statements have been translated from the statutory financial statements prepared in accordance with the Accounting Standards for Business Enterprises-Basic Standard. In the event of any differences in interpreting the financial statements, the Chinese version shall prevail.
Index Pages AUDITOR S REPORT 1 2 AUDITED FINANCIAL STATEMENTS Balance Sheet 3-4 Income Statement 5 Statement of Cash Flows 6 Statement of Changes in Equity 7 Notes to Financial Statements 8 23
Auditor s report Ernst & Young Hua Ming (2017) Shen Zi No. 61059626_B01 To the board of directors of HCL Technologies (Shanghai) Limited We have audited the accompanying financial statements of HCL Technologies (Shanghai) Limited ( The company ), which comprise the balance sheet as at 31 December 2016, and the income statement, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements. Management s responsibility for the financial statements Management is responsible for the preparation and fair presentation of these financial statements. This responsibility includes: (1) preparing and fairly presenting the financial statements in accordance with Accounting System for Business Enterprises; (2) designing, implementing and maintaining internal control as management determines is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error. Auditor s responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the Chinese Standards on Auditing. Those standards require that we comply with Code of Ethics for Chinese Certified Public Accountants and plan and perform the audit to obtain a reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers the internal control relevant to the entity s preparation and fair presentation of financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting polices used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 1 This branch has been authorized to practice by Ernst & Young Hua Ming LLP
Auditor s report (continued) Ernst & Young Hua Ming (2017) Shen Zi No. 61059626_B01 Opinion In our opinion, the financial statements present fairly, in all material aspects, the financial position of HCL Technologies (Shanghai) Limited as at 31 December 2016 and its financial performance and cash flows for the year then ended in accordance with Accounting System for Business Enterprises. Zhang Fei Ernst & Young Hua Ming LLP Shanghai Branch Chinese Certified Public Accountant: Yuan Xiao Hui Shanghai, the People s Republic of China Chinese Certified Public Accountant: 26 May 2017 2 This branch has been authorized to practice by Ernst & Young Hua Ming LLP
BALANCE SHEET 31 December 2016 Notes ASSETS Current assets: Cash 3 56,282,760.37 49,738,819.90 Short-term investment 8,000,000.00 - Accounts receivable 4 5 80,944,847.38 39,195,392.95 Other receivables 6 1,284,358.11 28,425,033.23 Interest receivables 120,547.95 - Prepaid expenses 1,675,566.35 219,878.00 Total current assets 148,308,080.16 117,579,124.08 Non-current assets: Fixed assets cost 7 7,543,556.83 4,668,435.45 Less: Accumulated depreciation 7 3,762,851.49 3,021,123.82 Fixed assets, net 7 3,780,705.34 1,647,311.63 Total non-current assets 3,780,705.34 1,647,311.63 TOTAL ASSETS 152,088,785.50 119,226,435.71 The notes on pages 8 to 23 form an integral part of these financial statements. 3
BALANCE SHEET (continued) 31 December 2016 Notes LIABILITIES AND OWNERS EQUITY Current liabilities: Accounts payable 97,882,017.34 76,580,405.95 Advances from customers 1,747,139.58 746,563.34 Accrued payroll 1,397,442.22 1,839,059.00 Taxes payable 9 3,180,410.91 1,808,582.65 Other payables 1,723,371.56 1,159,908.96 Accrued expenses 2,323,751.76 1,897,986.52 Total liabilities 108,254,133.37 84,032,506.42 Owners equity: Share capital 10 15,316,566.95 15,316,566.95 Surplus reserves 11 2,851,808.51 1,987,736.23 Retained earnings 25,666,276.67 17,889,626.11 Total owners equity 43,834,652.13 35,193,929.29 TOTAL LIABILITIES AND OWNERS EQUITY 152,088,785.50 119,226,435.71 The notes on pages 8 to 23 form an integral part of these financial statements. The financial statements on pages 3 to 23 have been signed by: Legal representative: Financial manager: 4
INCOME STATEMENT Notes Revenue from principal operations 12 114,242,588.89 111,361,404.22 Less: Taxes and surcharges 29,347.37 (170,645.71) Cost of sales 95,321,549.89 90,965,784.65 Operating expenses 1,583,896.95 1,444,648.34 General and administrative expenses 9,374,431.41 9,993,625.99 Financial expenses 13 (3,202,971.76) (2,185,361.14) Operating profit 11,136,335.05 11,313,352.09 Add: Non-operating income 51,510.20 23,358.03 Less: Non-operating expenses 180.74 168,041.92 Total profit 11,187,664.51 11,168,668.20 Less: Income tax 2,546,941.67 1,243,850.42 Net profit 8,640,722.84 9,924,817.78 The notes on pages 8 to 23 form an integral part of these financial statements. 5
STATEMENT OF CASH FLOWS CASH FLOWS FROM OPERATING ACTIVITIES: Supplementary Notes Cash received from sale of goods 77,570,552.40 103,748,038.37 Cash received from tax refund 51,510.20 23,358.03 Cash received relating to other operating activities 922,883.94 714,123.75 Sub-total of cash inflows 78,544,946.54 104,485,520.15 Cash paid for goods 27,127,605.03 14,971,931.03 Cash paid to and on behalf of employees 51,768,924.86 57,468,356.25 Cash paid for all types of taxes 3,061,787.21 6,482,937.01 Cash paid relating to other operating activities 9,836,545.14 6,666,578.56 Sub-total of cash outflows 91,794,862.24 81,874,218.83 Net cash flows from operating activities (1) (13,249,915.70) 22,611,301.32 CASH FLOWS FROM INVESTING ACTIVITIES: Cash received from investments - 1,361,338.21 Cash received from returns of investments 27,000,000.00 - Net cash received from disposal of fixed assets, intangible assets and other long-term assets - 665,314.46 Cash received relating to other operating activities 368,852.73 - Sub-total of cash inflows 27,368,852.73 2,026,652.67 Cash paid for acquisition of fixed assets, intangible assets and other long-term assets 3,313,258.65 1,872,025.40 Cash payments for investments 8,000,000.00 27,000,000.00 Sub-total of cash outflows 11,313,258.65 28,872,025.40 Net cash flows from investing activities 16,055,594.08 (26,845,372.73) EFFECT OF CHANGES IN EXCHANGE RATE ON CASH 3,738,262.09 408,279.33 NET INCREASE IN CASH AND CASH EQUIVALENTS 6,543,940.47 (3,825,792.08) The notes on pages 8 to 23 form an integral part of these financial statements. 5
STATEMENT OF CASH FLOWS (continued) Supplementary Notes Supplementary Notes 1. Reconciliation of net profit to cash flows from operating activities Net profit 8,640,722.84 9,924,817.78 Add: Provision for impairment of assets 28,750.00 163,104.19 Depreciation of fixed assets 818,717.62 788,138.76 Amortisation of long-term prepayments 44,518.74 Increase / (Decrease) in prepaid expenses 127,407.73 39,933.18 Increase / (Decrease) in accrued expenses 2,469,407.13 (3,818,967.29) Losses from disposal of other long-term assets 140,093.71 Financial expenses (4,227,662.77) (1,769,617.55) Decrease / (increase) in operating receivables (41,276,381.99) (13,131,549.96) Increase in operating payables 23,795,861.72 30,230,829.75 Net cash flows from operating Activities (13,249,915.70) 22,611,301.32 2. Net (decrease) / increase in cash and cash equivalents Cash at end of year 56,282,760.37 49,738,819.90 Less: Cash at beginning of year 49,738,819.90 53,564,611.97 Net increase in cash and cash equivalents 6,543,940.47 (3,825,792.07) The notes on pages 8 to 23 form an integral part of these financial statements. 6
STATEMENT OF CHANGES IN EQUITY PAID-IN CAPITAL: At beginning and end of year 15,316,566.95 15,316,566.95 SURPLUS RESERVE: At beginning of year 1,987,736.23 - Increase in current year 864,072.28 1,987,736.23 At end of year 2,851,808.51 1,987,736.23 RETAINED EARNINGS: At beginning of year 17,889,626.11 9,952,544.56 Appropriation to surplus reserve (864,072.28) (1,987,736.23) Net profit for the year 8,640,722.84 9,924,817.78 At end of year 25,666,276.67 17,889,626.11 The notes on pages 8 to 23 form an integral part of these financial statements. 7
NOTES TO FINANCIAL STATEMENTS 1. Corporate information HCL Technologies (Shanghai) Limited ( the Company ) is a limited company solely established by HCL TECHNOLOGIES LIMITED on 18 July 2007 upon approval by People s Government of Shanghai. The registrated capital of the Company is USD 2,200,000. The aforesaid registrated capital has been verified by Shanghai Linxin Accountants Limited with capital verification report Linkuai Fa No.(2009) 575 on 6 May 2009. It obtained business license numbered 91310115664306168R. Its legal representative is ANIL KUMAR CHANANA and the operation period is 20 years. Its legal registration address is 23500, 14 Building, 498 Guoshoujing Road, SPSP, Pudong New Area, Shanghai. The Company is primarily engaged in the following businesses: Computer software development;design, production, sale of products, debugging and maintenance of system integration; relevant technical consulting, technical service; business consulting, enterprise management consulting (business which is involving administrative licensing, will operate with operating permits) 2. Significant accounting policies and estimates The financial statements have been prepared based on the following accounting policies and estimates, which are in accordance with the Accounting Standards for Business Enterprises, relevant implementation guidance and interpretations. Accounting system The Company adopts the Accounting System for Business Enterprises. Accounting year The accounting year of the Company is from 1 January to 31 December. Reporting currency The Company s reporting and presentation currency is the Renminbi ( Rmb ).Unless otherwise stated, the unit of the currency is RMB Yuan. Basis of accounting and measurement basis Unless otherwise stated, the Company s accounts have been prepared on an accrual basis using the historical cost as the basis of measurement. Assets are recorded at cost when they are acquired. Subsequently, if the assets are impaired, impairment provisions are made in accordance with the Accounting System for Business Enterprises. 8
2. Significant accounting policies and estimates (continued) Foreign currency transactions The foreign currency transactions are recorded, on initial recognition in the functional currency, by applying to the foreign currency amount the spot exchange rate released from Bank of China at the trasanction dates. At the balance sheet date, foreign currency monetary items are translated using the spot exchange rate at the balance sheet date. All the settlement differences and translated differences of monetary items are recognized in profit and loss for the reporting period, except for those generated from foreign currency bank loans specifically for purchase or construction of capitalized assets. Non-monetary foreign currency items measured at historical cost are translated at the spot exchange rate prevailing on the transaction date, and the amount denominated in the functional currency should not be changed. Cash equivalents Cash equivalents represent short-term, highly liquid investments which are readily convertible into known amounts of cash, and which are subject to an insignificant risk of changes in value. Bad debts Accounts receivable meeting the following criteria are recognised as bad debts: the debtor is deceased or has been declared bankrupt and the debts remain uncollectible after considering the assets of the bankrupt or the estate of the deceased debtor; debts that are long overdue where there is also evidence indicating that the debts are uncollectible or the possibility of collection is remote. Specific provisions are made to account for bad debt losses on accounts receivable and other receivables. A specific provision refers to an amount that is provided based on management s assessment of the recoverability of an individual receivable. Fixed assets Fixed assets are tangible assets with high unit costs held by the Company for use in production of goods, supply of services, rental or for administrative purposes, and are expected to be used for more than one year. 9
2. Significant accounting policies and estimates (continued) Fixed assets Fixed assets are recorded at cost when acquired. Fixed assets depreciation is calculated using the straight-line method. The respective estimated useful lives and estimated residual values of fixed assets are as follows: Estimated Estimated residual Annual Category useful life value depreciation rate Office equipment 5years 10% 18% Electronic equipment 3-5years 0-10% 18%-33% At the end of the accounting period, fixed assets are carried at the lower of book value and recoverable amount. A provision for impairment of fixed assets is made for any difference between the book value and the lower recoverable amount. The recoverable amount of the fixed assets is the greater of the net selling price and the value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. Gains or losses arising from the disposal, damage, obsolescence or physical counting of fixed assets are accounted for as non-operating expenses or income in the current year. Long-term prepayments Long-term prepayments are amortised over the periods from which the Company derives benefits, on a straight-line basis, as follows: Item Decorating expenses Beneficial period 3 years Revenue recognition Revenue from the sale of goods is recognised when: the significant risks and rewards in relation to ownership of the goods have been transferred to the buyer; the Company maintains neither continuing managerial involvement nor effective control over the goods sold; it is probable that the economic benefits associated with the transaction will flow to the Company; and the relevant amounts of revenue and costs can be measured reliably. 10
2. Significant accounting policies and estimates (continued) Revenue recognition Rendering of services are recognised when the results of service providing transactions can be estimated reliably and the transactions initiate and terminate within one fiscal year. For inter-temporal services, rendering of services are recognised by percentage of completion. Operating leases Leases where substantially all the rewards and risks of ownership of assets remain with the lessor are accounted for as operating leases. Rentals applicable to such operating leases are charged to the income statement on a straight-line basis over the lease terms. Income tax Income tax is accounted for using the tax payable method, whereby the income tax provision is calculated based on the applicable income tax rate and the accounting results for the year after adjusting for items which are non-assessable or disallowed in accordance with the relevant tax laws. Related party In financial and operating decisions, if a party has the power to control, jointly control or exercise significant influence over another party, they are regarded as related parties. Two or more parties are also regarde as related parties if they are subject to control, joint control or siginificant influence from the same party. 3. Cash Cash in bank 56,282,760.37 49,738,819.90 4. Accounts receivable Accounts receivable 81,696,250.38 39,918,045.95 Less: Bad debt provision 751,403.00 722,653.00 80,944,847.38 39,195,392.95 11
4. Accounts receivable (continued) The ageing analysis is as below: Balance % Bad debt Balance % Bad debt Provision provisoin Within 1 year 81,696,250.38 100 751,403.00 39,918,045.95 100 722,653.00 1-2 yeras - - - - - - 81,696,250.38 100 751,403.00 39,918,045.95 100 722,653.00 5. Bad debt provision Opening Closing balance Additions Reversals balance Accounts receivable 722,653.00 28,750.00-751,403.00 6. Other receivables Other receivables 1,284,358.11 28,425,033.23 7. Fixed assets Electronic Equipments Office Equipments Total Cost Opening Balance 4,575,130.40 93,305.05 4,668,435.45 Additions 3,300,608.65 12,650.00 3,313,258.65 Disposals 420,517.27 17,620.00 438,137.27 Closing balance 7,455,221.78 88,335.05 7,543,556.83 Accumulated depreciation Opening balance 2,964,765.77 56,358.05 3,021,123.82 Charge for the year 800,898.29 17,819.33 818,717.62 Written back On disposal 74,892.35 2,097.60 76,989.95 Closing blance 3,690,771.71 72,079.78 3,762,851.49 12
7. Fixed assets (continued) Net book value As of 31 Dec.2015 1,610,364.63 36,947.00 1,647,311.63 As of 31 Dec.2016 3,764,450.07 16,255.27 3,780,705.34 As at 31 December, Management of the Company was in view of that no fixed assets impairment should be provided. 8. Long-term prepayments Decorating expenses Opening balance - 44,518.74 Additions - - Amortisation - (44,518.74) Closing balance - - 9. Taxes payable Value added tax 373,553.37 850,007.24 Income tax 2,806,857.54 958,575.41 3,180,410.91 1,808,582.65 The major categories of taxes applicable to the Company and the respective tax rates are as follows: (1) Value added tax ( VAT ) - In accordance with the relevant tax laws in the PRC, the VAT rate for sales is 6%. VAT is levied at 6% on the invoiced value of sales and is payable by the purchaser. The Company is required to remit the VAT it collects to the tax authority, but may deduct the VAT it has paid on eligible purchases. 13
9. Taxes payable (continued) The major categories of taxes applicable to the Company and the respective tax rates are as follows: (continued) (2) Income tax The company is applicable for statutory tax rate of 25%. (3) Withholding of individual - In accordance with the relevant tax laws in income tax the PRC, the Company is required to withhold individual income tax on salaries paid to its employees. (4) Withholding of - In accordance with the relevant tax laws in corporate taxes the PRC, the Company is required to withhold and pay corporate income tax and business tax in respect of the interest and technology transfer fees payable to foreign investors and overseas related companies. 10. Paid-in capital Registered: RMB % RMB % HCL Technologies Ltd. 15,316,566.95 100.00 15,316,566.95 100.00 Paid in: RMB % RMB % HCL Technologies Ltd. 15,316,566.95 100.00 15,316,566.95 100.00 Shanghai Lin Xin Accountant Firm issued Linkuai Fa No.(2009) 575 capital verification report.on 6 May 2009. 14
11. Surplus reserve 2016 Openning Balance Additions Decrease Closing Balance Surplus reserve 1,987,736.23 864,072.28-2,851,808.51 According to the provisions of Company Law and the Company s articles of association, the Company appropriates statutory surplus reserve at 10% of the net profit. Where the accumulated amount of surplus reserve reaches 50% or more of the company s registered capital, additional appropriation is not needed. 12. Revenue from principal operations Rendering of services 114,242,588.89 111,361,404.22 13. Financial expenses 2016 2014 Interest expense / (gain) (920,475.66) (2,018,958.25) Exchange loss / (gain) (2,306,882.33) (223,788.51) Others 24,386.23 57,385.62 (3,202,971.76) (2,185,361.14) 14. Related party relationships and transactions Details of the Company s investor, which has a controlling interest in the Company, are as follows: Equity interest held and its Name of Investor Registered Country changes during the year HCL Technologies Ltd. India 100% Name of related party HCL SWEDEN AB HCL Singapore Pte. Ltd. HCL Poland sp. z o.o HCL Japan Ltd. HCL Hong Kong SAR Ltd. HCL GmbH, Germany HCL Technologies France Relationship 15
14. Related party relationships and transactions (continued) Name Relationship HCL Belgium NV HCL Australia Services Pty. Ltd. HCL America Inc. HCL Axon Solutions (Shanghai) Co., Ltd. HCL Technologies Finland Oy HCL Great Britain Ltd. HCL (Brazil) Tecnologia da informacao Ltda. HCL Technologies Middle East FZ-LLC HCL Technologies Solutions GmbH HCL South Africa Share Ow HCL Technologies Norway AS Filial Espanola De HCL Technologies S.L. HCL TECHNOLOGIES LTD. Portugal HCL ARGENTINA S.A. HCL Axon Malaysia Sdn. Bhd. PT. HCL Technologies Indonesia HCL (Netherlands) BV HCL Technologies Limited - Russia Branch HCL Technologies Limited - Israel Branch HCL Italy SRL HCL Mexico S.De.R.L.De.C.V. HCL Technologies Austria GmbH Axon Solutions Pty. Ltd. HCL Technologies UK Ltd. HCL Technologies Chile SPA HCL Technologies Denmark Aps HCL Ireland Information Systems Ltd. HCL Technologies Germany GmbH HCL Axon Technologies Inc. HCL Arabia LLC HCL (New Zealand) Ltd. HCL Technologies South Africa (Pty.) Ltd. HCL (Malaysia) Sdn. Bhd. 16
14. Related party relationships and transactions (continued) Name Relationship HCL Technologies (Thailand) Limited HCL Technologies B.V. HCL Hungary Korlátolt Felelõsségű Társaság (Kft.) HCL Technologies Romania Srl. HCL Technologies Limite - Swiss Branch HCL İSTANBUL BILIŞIM TEKNOLOJILERI LIMITED ŞIRKETI HCL Axon (Proprietary) Ltd. HCL Technologies Columbia S.A.S Filial Espanola De HCL Technologies S.L. HCL Netherlands B.V. HCL Technologies (Beijing) Limited Significant transactions between the Company and its related parties during the year are as follows: (1) Sales and purchases Sales of goods and services 2016 年 2015 年 HCL America Inc. 25,304,298.34 18,103,317.14 HCL Axon Solutions (Shanghai) Co., Ltd. 4,188,401.78 2,836,248.00 HCL Technologies Solutions GmbH 763,211.00 1,125,098.50 HCL Technologies Ltd. 2,185,760.25 6,088,744.54 HCL GmbH, Germany 1,950,058.00 1,768,166.00 HCL Singapore Pte. Ltd. 784,480.00 1,107,903.00 HCL Axon (Proprietary) Ltd. 20,854.00 909,338.00 HCL Technologies Finland Oy 5,465,579.05 772,445.21 HCL Belgium NV 1,092,469.61 602,234.00 HCL Great Britain Ltd. 935,542.00 528,773.19 HCL (Brazil) Tecnologia da informacao Ltda. 800,355.25 478,519.97 HCL Netherlands B.V. 364,891.00 378,275.00 HCL Technologies UK Ltd. 2,214,544.00 298,568.00 HCL Axon Technologies Inc. 254,379.44 284,640.56 HCL Mexico S.De.R.L.De.C.V. 447,305.00 276,508.00 HCL Australia Services Pty. Ltd. 390,477.31 208,828.00 HCL Italy SRL 296,687.64 189,338.00 HCL Technologies Chile SPA 40,255.46 122,467.41 17
14. Related party relationships and transactions (continued) (1) Sales and purchases (continued) Sales of goods and services (continued) 2016 年 2015 年 HCL Hong Kong SAR Ltd. 2,232,601.00 120,129.00 Filial Espanola De HCL Technologies S.L. - 112,243.00 HCL (New Zealand) Ltd. 27,366.30 47,196.21 HCL Japan Ltd. 171,656.00 45,490.00 HCL Technologies Norway AS - 44,232.60 HCL Technologies Denmark Aps 793,299.30 34,453.46 HCL Ireland Information Systems Ltd. - 18,454.00 HCL Technologies Limited - Russia Branch 28,226.00 18,419.00 HCL Technologies France 402,678.37 - HCL (Netherlands) BV 1,283,867.00 - HCL Axon Malaysia Sdn. Bhd. 83,011.00 - HCL TECHNOLOGIES LTD. Portugal 11,115.00 - PT. HCL Technologies Indonesia 55,500.00 - HCL Poland sp. z o.o. 89,649.00 - HCL Technologies Columbia S.A.S 51,483.97 - Axon Solutions Pty. Ltd. 102,775.00 - HCL Technologies (Thailand) Limited 1,027,405.00 - HCL Technologies B.V. 127,795.00 - HCL Hungary Korlátolt Felelõsségű Társaság (Kft.) 430,090.53 - HCL Technologies Romania Srl. 29,775.87 - HCL Arabia LLC 40,890.00 - HCL İSTANBUL BILIŞIM TEKNOLOJILERI LIMITED ŞIRKETI 79,185.99 - HCL Technologies Austria GmbH 69,140.00 - Purchases of goods and services 54,637,059.46 36,520,029.79 HCL Great Britain Ltd. 6,392,918.48 14,923,629.26 HCL Technologies Ltd. 12,960,471.08 11,675,305.48 HCL Technologies Germany GmbH 704,569.20 2,304,495.42 HCL (Brazil) Tecnologia da informacao Ltda. 191,758.48 2,217,066.47 HCL GmbH, Germany 1,435,388.61 1,294,769.34 HCL Poland sp. z o.o (100,963.04) 1,166,949.04 18
14. Related party relationships and transactions (continued) (1) Sales and purchases (continued) Purchases of goods and services (continued) 2016 年 2015 年 HCL Singapore Pte. Ltd. (13,006.21) 638,386.51 HCL Technologies Finland Oy 367,717.41 579,127.78 HCL Axon Solutions (Shanghai) Co., Ltd. 7,035,855.04 3,020,421.41 HCL America Inc. 325,562.89 423,917.86 HCL Technologies UK Ltd. 331,572.29 - HCL Australia Services Pty. Ltd. (5,080.91) 244,770.92 Axon Solutions Pty. Ltd. 189,747.06 202,692.65 HCL Technologies Austria GmbH 62,331.28 190,164.62 HCL Mexico S.De.R.L.De.C.V. 17,941.53 166,831.58 Axon Solutions Limited 387,101.74 376,488.45 HCL Tech Limited, Moscow (38,518.08) 145,178.09 HCL Axon Technologies Inc. 2,995,418.99 135,439.43 HCL Italy SRL 118,601.50 82,878.05 HCL Singapore Pte. Ltd. 802,192.59 79,973.25 HCL SWEDEN AB 28,707.08 50,010.44 HCL (Malaysia) Sdn. Bhd. 293,347.39 45,787.97 HCL Technologies France 101,272.53 45,558.29 HCL Arabia LLC (21,764.00) 23,226.27 Filial Espanola De HCL Technologies S.L. 20,690.38 13,850.40 HCL Japan Ltd. 12,920.44 12,511.35 HCL Technologies South Africa (Pty.) Ltd. - 203,693.00 HCL Belgium NV (4,362.46) 6,859.42 HCL Technologies Limited - Israel Branch 2.91 474.33 HCL Technologies Middle East FZ-LLC 12,594.91 (250.91) HCL Netherlands B.V. 207,791.04 - HCL Technologies Columbia S.A.S 34,326.41 - HCL ARGENTINA S.A. 28,576.00 HCL Technologies Limite - Swiss Branch 24,887.00 - HCL Technologies Chile SPA 83,055.00 - HCL Technologies Denmark Aps 610.00 - PT. HCL Technologies Indonesia 39,849.00-35,024,083.56 40,270,206.17 19
14. Related party relationships and transactions (continued) (2) Amounts due from/to related parties (continued) Accounts receivable HCL America Inc. 24,404,563.39 4,478,746.51 HCL Axon Solutions (Shanghai) Co., Ltd. 7,044,536.17 2,856,134.39 HCL Technologies Ltd. 3,498,135.31 1,351,641.59 HCL GmbH, Germany 1,950,058.00 693,151.00 HCL Technologies Finland Oy 5,459,962.39 579,512.85 HCL (Brazil) Tecnologia da informacao Ltda. 1,278,875.22 517,685.97 HCL Technologies Solutions GmbH 594,958.80 369,978.80 HCL Singapore Pte. Ltd. 781,638.04 372,425.18 HCL Technologies UK Ltd. 2,299,756.00 298,568.00 HCL Netherlands B.V. 593,478.00 228,587.00 HCL Australia Services Pty. Ltd. 390,477.31 208,828.00 HCL Italy SRL 296,687.64 189,338.00 HCL Axon Technologies Inc. 254,379.44 141,016.00 HCL Japan Ltd. 251,780.56 120,562.90 HCL Technologies Chile SPA 160,069.67 119,814.21 Filial Espanola De HCL Technologies S.L. - 112,575.40 HCL ARGENTINA S.A. 78,105.16 70,262.16 HCL Hong Kong SAR Ltd. 2,288,308.34 56,033.34 HCL (New Zealand) Ltd. 27,366.30 47,196.21 HCL Technologies Denmark Aps 793,909.19 34,453.46 HCL Great Britain Ltd. 935,542.00 26,955.00 HCL Technologies Limited - Russia Branch 46,645.00 18,419.00 HCL Mexico S.De.R.L.De.C.V. 447,658.94 18,260.00 PT. HCL Technologies Indonesia 63,760.00 - HCL South Africa Share Ow 20,854.00 - HCL Belgium NV 1,092,469.61 - HCL Poland sp. z o.o 586,457.71 - HCL TECHNOLOGIES LTD. Portugal 11,115.00 - HCL Technologies France 402,678.37 - HCL Axon Malaysia Sdn. Bhd. 83,011.00 - HCL Technologies Columbia S.A.S 51,483.97 - HCL İSTANBUL BILIŞIM TEKNOLOJILERI LIMITED ŞIRKETI 79,185.99 - Axon Solutions Pty. Ltd. 102,775.00-20
14. Related party relationships and transactions (continued) (2) Amounts due from/to related parties (continued) Accounts receivable (continued) HCL Technologies (Thailand) Limited 1,027,405.00 - HCL Technologies B.V. 127,795.00 - HCL Hungary Korlátolt Felelõsségű Társaság (Kft.) 430,090.53 - HCL Technologies Romania Srl. 29,775.87 - HCL Saudi Arabia 40,890.00 - HCL Technologies Austria GmbH 69,140.00 - Advances from customers HCL Technologies Ltd. 607,200.60 607,200.60 Accounts payable HCL Technologies Ltd. 29,293,742.75 30,227,794.02 HCL Great Britain Ltd. 27,769,632.71 21,376,714.23 HCL America Inc. 3,589,258.39 3,263,695.50 HCL GmbH, Germany 4,448,035.04 3,012,646.43 HCL Singapore Pte. Ltd. 2,806,200.71 2,819,206.92 HCL (Brazil) Tecnologia da informacao Ltda. 2,390,750.94 2,441,327.06 HCL Technologies Germany GmbH 3,009,064.62 2,304,495.42 HCL Poland sp. z o.o 1,794,229.85 1,895,192.89 HCL Axon Solutions (Shanghai) Co., Ltd. 10,735,990.81 3,700,135.77 HCL Technologies Finland Oy 1,075,713.08 707,995.67 HCL Singapore Pte. Ltd. 1,445,428.18 643,235.59 HCL Mexico S.De.R.L.De.C.V. 644,447.66 626,506.13 HCL Technologies UK Ltd. 331,572.29 - Axon Solutions Limited 763,590.19 376,488.45 HCL Australia Services Pty. Ltd. 339,575.22 344,656.13 HCL Technologies Austria GmbH 398,269.51 335,938.23 Axon Solutions Pty. Ltd. 445,334.84 255,587.78 HCL Tech Limited, Moscow 196,136.86 234,654.94 HCL Japan Ltd. 225,395.20 212,474.76 HCL Italy SRL 259,909.48 172,874.01 HCL Axon Technologies Inc. 3,130,858.42 135,439.43 HCL Technologies France 213,718.58 112,446.05 HCL SWEDEN AB 108,979.66 103,284.66 21
14. Related party relationships and transactions (continued) (2) Amounts due from/to related parties (continued) Accounts payable (continued) HCL Belgium NV 18,341.86 37,934.39 HCL Netherlands B.V. 231,947.59 24,156.55 PT. HCL Technologies Indonesia 39,849.00 - HCL Arabia LLC 1,462.27 23,226.27 Filial Espanola De HCL Technologies S.L. 34,208.38 13,850.40 HCL Technologies Limited - Israel Branch 12,050.13 12,047.22 HCL Technologies Middle East FZ-LLC 14,211.00 1,616.09 HCL (Malaysia) Sdn. Bhd. 339,135.36 45,787.97 HCL Technologies Columbia S.A.S 34,326.41 - HCL ARGENTINA S.A. 28,576.00 - HCL Technologies Limite - Swiss Branch 24,887.00 - HCL Technologies Chile SPA 83,055.00 - HCL Technologies Denmark Aps 610.00 - Other Receivables HCL Axon Solutions (Shanghai) Co., Ltd. 756,637.32 27,746,803.30 Other payables HCL Axon Solutions (Shanghai) Co., Ltd. 48,223.40 53,478.00 HCL India - 858.50 Short-term Investment HCL Technologies (Beijing) Limited 8,000,000.00 - Amounts due from/to related parties are interest free, unsecured and repayable within 2 years. 22
15. Commitments The non-cancellable minimum lease payments for each of the next three years subsequent to the balance sheet date and aggregate minimum lease payments thereafter are as follows: Operating lease commitments The 1st year 497,500.80 1,218,705.41 The 2nd year - 507,793.92 497,500.80 1,726,499.33 16. Contingencies As of the balance sheet date, there were no contingencies that the Company was required to disclose. 17. Events occurring after the balance sheet date The company has no events occurring after the balance sheet date need to disclosure. 18. Approval of the financial statements The financial statements have been authorised for issuance by the board of directors on 26 May 2017. 23