ASSIGNMENT OF FINANCIAL MANAGEMENT

Course Code: FIN302 Course Title: FUNDAMENTALS

OF
FINANCIAL MANAGEMENT

Course Instructor: Dr. NITIN GUPTA

Academic Task No: 2 Academic Task Title: Mittal School of Business

Date of Allotment: 11.03.2022 Date of submission: 24.03.2022

Student's Name: ADARSH KUMAR Student's Registration no:

12016915

Evaluation Parameters: (Parameters on which student is to be evaluated as per IP and as uploa

Learning Outcomes: (Student to write briefly about learnings obtained from the
academic tasks)

Declaration:

I declare that this assignment is my individual work. I have not copied it from any other student's
work or from any other source except where due acknowledgement is made explicity in the text, nor
has any part been written for me by any other person.
 HCL TECHNOLOGIES

HCL Technologies is an Indian multinational

information technology services and
consulting company headquartered in Noida,
Uttar Pradesh, India. It is a subsidiary of HCL
Enterprise. HCL Technologies is an Indian
multinational information technology services
and consulting company headquartered in
Noida, Uttar Pradesh, India. It is a subsidiary
of HCL Enterprise.
The company has offices in 50 countries including
United Kingdom, United States, France, and Germany
with a worldwide network of R&D, "innovation labs"
and "delivery centers", over 187,000 employees and its
customers include 250 of the Fortune 500 and 650 of
the Global 2,000 companies.
It operates across sectors including aerospace and
defense, automotive, banking, capital markets, chemical
and process industries, energy and utilities, healthcare,
hi-tech, industrial manufacturing, consumer goods,
insurance, life sciences, manufacturing, media and
entertainment, mining and natural resources, oil and
gas, retail, telecom, and travel, transportation, logistics
& hospitality.
HCL Technologies is on the Forbes Global 2000 list.It
is among the top 20 largest publicly traded companies
in India with a market capitalisation of $50 billion as of
September 2021.As of July 2020, the company, along
with its subsidiaries, had a consolidated annual revenue
of ₹71,265 crore (US$10 billion).

As of 17 September 2014, its market

capitalisation was ₹49,611.58
crore (equivalent to ₹560 billion or US$7.5
billion in 2020), making it India's 42nd largest
publicly traded company by market value.

HCL has 34 manufacturing units in 8 locations across

India and a presence in over
80 countries.Exports accounted for 48% ₹4,948 crore
(equivalent to ₹71 billion or US$950 million in 2020)
of its revenue for FY 2013–14. HCL spent ₹517 cr.
(5.4% of revenue) in FY 2013–14 on R&D activities.
The primary focus areas for R&D were development
of new formulations, drug- delivery systems and
APIs (active pharmaceutical ingredients). HCL also
cooperates with other enterprises in areas such as
consulting, commissioning, engineering, project
appraisal, quality control, know-how transfer,
support, and plant supply.
As on 31 March 2013, the company had 22,036
employees (out of which 2,455 were women (7.30%)
and 23 were employees with disabilities
(0.1%)).During the FY 2013–14, the company incurred
₹1,285
crore (equivalent to ₹17 billion or
US$230 million in 2020) on employee benefit
expenses.
The equity shares of HCL are listed on
the Bombay Stock Exchange, where it is a constituent
of the BSE SENSEX index,
and the National Stock Exchange of India, where it is a
constituent of the CNX Nifty. Its Global Depository
Receipts (GDRs) are listed on
the Luxembourg Stock Exchange.As of 30
September 2014, the promoter
group, Y. K. Hamied and his family, held
around 36.80% equity shares in HCL.
Around 148,000 individual shareholders held approx.
18.67% of its shares.[32] LIC is the largest non-
promoter shareholder with approx. 6.45%
shareholding in the company by the end of September
2013.

LONG TERM FINANCE

AND SHORT TERM
FINANCE
HCL TECH. - BALANCE SHEET
FIGURES IN RS CRORE 2021 2020 2019

SOURCES OF FUNDS

Share Capital 161.29 161.25 161.14

Reserves 19766.27 17241.71 15620.77

Total Shareholders Funds 19927.56 17402.96 15781.91

Secured Loans 0.00 0.00 0.00

Unsecured Loans 239.33 276.50 225.98

Total Debt 239.33 276.50 225.98

Total Liabilities 20166.89 17679.46 16007.89

APPLICATION OF FUNDS

Gross Block 7089.49 6697.52 6161.03

Capital Work In Progress 355.11 319.73 297.33

Investments 9725.83 7189.75 5815.19

CURRENT ASSETS, LOANS & ADVANCES

Inventories 3085.81 3021.36 2868.41

Sundry Debtors 3035.37 3560.27 3168.73

Cash And Bank 874.80 523.07 174.56

Loans And Advances 2044.52 1881.15 2357.21

Total Current Assets 9040.50 8985.85 8568.91

CURRENT LIABILITIES AND PROVISIONS

Current Liabilities 2395.87 2420.78 2382.71

Provisions 625.13 546.07 480.14

Net Current Assets 6019.50 6019.00 5706.06

Miscellaneous Expenses Not Written Off 0.00 0.00 0.00

Deferred Tax Assets N/A N/A N/A

Deferred Tax Liability N/A N/A N/A

Net Deferred Tax N/A N/A N/A

Other Assets 0.00 0.00 0.00

Total Assets 20166.89 17679.46 16007.89

Earnings & Estimates HCL TECH.
Qtr. EPS Est. +7.66 Q4 2022 Qtr. Year Ago +5.12 Q4 2021

Ann. EPS Est. +35.57 FY 2022 Ann. Year Ago +29.79 FY 2021

Next Report 05/24/2022 Last Report 01/25/2022

Fiscal Yr Ends March 31 No. of Analysts 3

Per Share Data HCL TECH.

All values updated annually at fiscal year end
Earnings Per Share +29.82 Sales 236.12

Tangible Book Value 167.29 Operating Profit 39.70

Working Capital 106.51 Long Term Liabilities 24.40

Capital Expenditure 10.14 Capital Expenditure TTM -

Ratios & Margins CIPLA Ltd.

All values updated annually at fiscal year end
Valuation
P/E Ratio (TTM) -

P/E Ratio (including extraordinary items) 32.98

Price to Sales Ratio 3.45

Price to Book Ratio 3.59

Price to Cash Flow Ratio 17.80

Enterprise Value to EBITDA 19.70

Enterprise Value to Sales 3.92

Total Debt to Enterprise Value 0.03

Total Debt to EBITDA 0.48

EPS (recurring) 29.65

EPS (basic) 29.82

EPS (diluted) 29.79

Efficiency
Revenue/Employee 5,122,608

Income Per Employee 646,262

Receivables Turnover 4.86

Total Asset Turnover 0.78

Liquidity
Current Ratio 2.87

Quick Ratio 1.82

Cash Ratio 0.82

Profitability
Gross Margin +31.88

Operating Margin +16.81

Pretax Margin +17.26

Net Margin +12.62

Return on Assets 9.85

Return on Equity 14.11

Return on Total Capital 16.13

Return on Invested Capital 12.64

Capital Structure
Total Debt to Total Equity 10.99

Total Debt to Total Capital 9.90

Total Debt to Total Assets 8.01

Interest Coverage 22.00

Long-Term Debt to Equity 7.64

Long-Term Debt to Total Capital 6.89

Long-Term Debt to Assets 0.06

 Updated IntradayUpdated Daily

Income Statement CIPLA Ltd.

● ANNUAL
 QUARTERLY
Net Income

Dec 2021 5-quarter trend

Net Income Growth -2.61%

Sales or Revenue 54.79 B

Sales or Revenue Growth+6.00%

EBITDA +12.31 B

Balance Sheet .
 QUARTERLY

● ANNUAL

Total Assets
070B140B210B280B

Dec2020Mar2021Jun2021Sep2021Dec2021

Dec 2021 5-quarter trend

Cash & Short-Term Investment -

Total Debt -

Total Liabilities -

Total Shareholder's Equity -

Book Value Per Share - -

Cash Flow HCL TECH.
● ANNUAL
 QUARTERLY
Net Operating Cash Flow
0

Mar2019Sep2019Dec2019Mar2020

Mar 2020 5-quarter trend

Capital Expenditures - -

Free Cash Flow - -

Cash Flow Per Share - -

Free Cash Flow Per Share - -

Equity markets BSE Sensex and Nifty 50

closed in the positive for the fifth consecutive
session on Monday buoyed by softening of oil
prices in the last week. Russia- Ukraine war
continues to drive the market sentiment. The
cooling off in commodity prices has helped
markets bounce off its lows.
Banks, Financial Services, and IT stocks led the
gains in the market while Realty and
Commodity related stocks were down. The
Nifty closed higher by 1.45% at 16871 levels
at the high point of the
day. Broader market indices BSE Midcap and
Small cap were up by 0.02% and 0.31% for the
day, thus underperforming the benchmark
indices. The advance-decline ratio was slightly
in favour of declines with a 5:6 ratio.
NSE Nifty 50 has seen a nice bounce back from
the low of 15671 hit last week. Now the index is
trying to fill the breakdown gap of 24th Feb and
reached the 200-day moving average. Thus,
16975-17030 is the resistance zone for the
market. Crossing and trading above 17030 on a
sustainable basis rally can extend towards
17490 odd levels where the next set of
resistances are seen. On the downside, support is
seen at 16450-16400 levels. On holding above
this index remains positive in the short term.
Breaking below the 16400 index is likely to
retest of recent low.
The US Federal Reserve will be meeting this
week for the first-rate hike since
the pandemic which is discounted in the market.
But markets will be closely watching the Fed’s
statement for its outlook and future rate hikes,
given the recent spike in commodity prices due
to the Russia-Ukraine war.
Stocks to buy
State Bank of India: SBI has seen a smart
bounce back after the fall. It is largely within a
broader range of 440 to 545 and turned up from
the lower end of the range. It can be bought with
a stop loss of 460 for a rally towards the upper
end of the range i.e. 545 levels.HCL: It has been
range bound between 1000 and 850 odd levels
for the last 11 months and consolidated its
gains. The stock has given a breakout on strong
momentum and started a new uptrend. Thus, it
can be bought at current levels and dips to 1020
with a stop loss of 980 for the target of 1250.
Mphasis: It is currently trading at the breakout
level after consolidating for 7 months. Stock
can be bought with a
stop loss of 3170 for a target of 3660.
Linde India: It has consolidated between 2950
and 2250 odd levels over the last eight months
and formed a base for the next rally. It is trading
at breakout levels. It can be bought with a stop
loss of 2800 for a target of 3250.

EQUITY AND LIABILITIES

Share Capital 161.02 160.90 0.07%

Share Warrants & Outstandings

Total Reserves 13,898.74 12,580.21 10.48%

Shareholder's Funds 14,113.52 12,800.51 10.26%

Long-Term Borrowings 0.00 0.00 0.00%

Secured Loans 0.00 0.00 0.00%

Unsecured Loans 0.00 0.07 -100.00%

Deferred Tax Assets / Liabilities -46.80 -59.54 -21.40%

Other Long Term Liabilities 125.30 125.20 0.08%

Long Term Trade Payables 0.00 0.00 0.00%

Long Term Provisions 124.45 125.61 -0.92%

Total Non-Current Liabilities 202.95 191.34 6.07%

Current Liabilities

Trade Payables 1,580.02 1,298.21 21.71%

Other Current Liabilities 579.07 670.58 -13.65%

Short Term Borrowings 174.43 324.26 -46.21%

Short Term Provisions 398.18 262.78 51.53%

Total Current Liabilities 2,731.70 2,555.83 6.88%

Total Liabilities 17,048.17 15,547.68 9.65%

ASSETS

Non-Current Assets 0.00 0.00 0.00%

Gross Block 5,740.80 5,151.81 11.43%

Less: Accumulated Depreciation 1,420.77 916.55 55.01%

Less: Impairment of Assets 0.00 0.00 0.00%

Net Block 4,320.03 4,235.26 2.00%

Lease Adjustment A/c 0.00 0.00 0.00%

Capital Work in Progress 435.28 540.52 -19.47%

Intangible assets under development 27.32 15.25 79.15%

Pre-operative Expenses pending 0.00 0.00 0.00%

Assets in transit 0.00 0.00 0.00%

Non Current Investments 3,597.56 3,648.03 -1.38%

Long Term Loans & Advances 611.43 624.98 -2.17%

Other Non Current Assets 118.38 138.30 -14.40%

Total Non-Current Assets 9,110.00 9,202.34 -1.00%

Current Assets Loans & Advances

Currents Investments 1,039.74 638.18 62.92%

Inventories 3,037.98 2,653.50 14.49%

Sundry Debtors 2,336.32 1,938.79 20.50%

Cash and Bank 227.53 58.46 289.21%

Other Current Assets 337.72 281.75 19.87%

Short Term Loans and Advances 958.88 774.66 23.78%

Total Current Assets 7,938.17 6,345.34 25.10%

Net Current Assets (Including Current Investments) 5,206.47 3,789.51 37.39%

Total Current Assets Excluding Current Investments 6,898.43 5,707.16 20.87%

Miscellaneous Expenses not written off 0.00 0.00 0.00%

Total Assets 17,048.17 15,547.68 9.65%

Contingent Liabilities 4,294.67 4,356.23 -1.41%

Total Debt 174.50 324.40 -46.21%

Book Value (in ₹) 174.63 158.37 10.27%

Adjusted Book Value (in ₹) 174.63 158.37 10.27%

LONG TERM
INVESTMENT AND SHORT
TERM INVESTMENT
At current level of ₹968, company’s growth
prospects and balance sheet strength provide
support to the long-term story
The stock of pharmaceutical major, HCL has gained
28 per cent since the YTD low of mid- March 2021.
USFDA approval for the company’s generic
Sumatriptan nasal spray in early March seems to have
spurred the stock movement.
Positive developments around the company’s
collaboration with foreign pharma companies for
marketing, distribution and/or manufacturing of
Covid-related drugs too have likely aided the rise. At
the current market price of ₹967.75, the stock
discounts its one-year forward estimated earnings
(Bloomberg consensus) by 27 times.

What are ELSS Funds?

Equity Linked Savings Scheme (ELSS) funds are a
category in the mutual fund product basket which
allows the investors to reap multiple benefits of
investing. ELSS Mutual Funds are best known for the
tax benefits they provide under section 80C of the
Income Tax Act 1961.

Further, the advantages of investing in equity

securities are also added to it. These are open- ended
equity mutual funds with a statutory lock-in of 3 years
and tax benefit. They are also known as tax-saving
funds.
Why should you invest in ELSS funds?
The objective of the scheme is to generate long-term
capital appreciation by investing predominantly in
equity and equity related securities of small cap
companies. However, there can be no assurance or
guarantee that
the investment objective of the scheme
would be achieved.
1. Tax Benefits
ELSS is one of the available investment options under
Section 80C of the Income Tax Act, which allows a
tax benefit up to Rs. 1.50 lakhs in a financial year to
the taxpayer. The amount of tax benefit is equal to the
amount invested during the period, subject to the
overall ceiling limit of Rs. 1.50 lakhs considered for
all eligible payments/ investments taken together. One
may invest in a lump sum or through SIP in ELSS
funds to avail of the tax benefit.

2. Lock-in period
Such mutual fund schemes are subject to a 3-year
lock-in period. As such, one cannot
redeem the investments in ELSS units before three
years from the date of investment. If one is investing
through SIP, such a lock-in period is calculated from
the actual investment date for each instalment and not.
3. Taxation
Considering the 3-year lock-in period, the gains from
ELSS funds will be classified as Long-Term Capital
Gains (LTCG). As such, the gains from such funds
are taxed at 10% (plus applicable cess and surcharge)
without any indexation benefit. Since no benefit of
indexation is allowed to the investors, one can
directly deduct the redemption value from the cost of
units redeemed to calculate the gains. Further, one
can also avail an aggregate exemption of Rs. 1 lakh
per year in respect of LTCG from equity shares and
equity funds, including ELSS, taken together.

4. No Auto Redemption
Unlike most of the eligible investments under Section
80C, the investments in ELSS units are not redeemed
at the end of the lock-in period. As such, one can
continue to stay invested in such funds, even beyond
the 3- year lock-in period. This allows the investors to
link such investments with their long term financial
goals. As such, ELSS enables investors to club their
tax savings and financial plans together.
5. Returns linked to Underlying
Investments
ELSS provides returns aligned to the investors as per
the performance of the securities in the underlying
portfolio.

THANKU!