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ANNEXURE 3 TO THE DIRECTORS’ REPORTDETAILS ON STOCK OPTION PLANS1999 Stock Option Plan / 2000 Stock Option Plan / 2004 Stock Option PlanPursuant to the approval of the shareholders, your Company had instituted the 1999 Stock Option Plan (“1999 Plan”), 2000 StockOptions Plan (“2000 Plan”) and 2004 Stock Option Plan (“2004 Plan”) for all eligible employees of the Company and its subsidiaries.The 1999 Plan, 2000 Plan and 2004 Plan are administered by the Compensation Committee of the Board and provide for the issuanceof 20,000,000; 15,000,000 and 20,000,000 options, respectively.Each option granted under the 1999 Plan, 2000 Plan and 2004 Plan, entitles the holder to four equity shares of the Company at anexercise price, which is approved by the Compensation Committee.The details of the options granted under the 1999 , 2000 and 2004 Plans are given below:S. No. Description 1999 Plan 2000 Plan 2004 Plan1. Total number of options granted (gross) 26,600,874 17,747,401 4,716,1722. The pricing formula Market price /internal valuationMarket price Market price / pricedetermined byCompensation Committee3. Number of options vested 17,531,472 10,467,938 2,622,4784. Number of options exercised 12,785,145 5,578,893 1,896,1165. Total number of shares arising as a result of exercise of 51,140,580 22,315,572 7,584,464options6. Number of options lapsed 12,292,872 9,817,327 740,9447. Variation in terms of options None None None8. Money realized by exercise of options (Rs. crores) 434.00 314.33 6.199. Total number of options in force as on June 30, 2010 1,522,857 2,351,180 2,079,11210. Grant to Senior ManagementNumber of Options 1,967,175 254,904 1,350,000Vesting Period 3-7 years 2-7 years 1.02-5 yearsThe diluted earnings per share were Rs. 15.33 and Rs.14.73 for the scal years ended June 30, 2010 and 2009 respectively.HCL TECHNOLOGIES LIMITED EMPLOYEES TRUSTIn April 2001, HCL Technologies Limited Employees Trust (“Trust”) was formed for the purpose of acquiring the shares of the Companyand thereby providing such shares to the eligible employees and directors of the Company and/or its subsidiaries at any timepursuant to the Stock Option Plans of the Company. The Company would provide this Trust interest free loan(s) from time to time upto a limit of Rs.150 crores for this purpose.As on June 30, 2010, an amount of Rs. 6.52 crores is outstanding as loan from the Company and Nil shares of the Company are heldby the trust. The Company has made provision of Rs. 6.52 crores against the same.23
ANNEXURE 3 TO THE DIRECTORS’ REPORT (Contd.)Details of Stock Option Plans for the year ended June 30, 2010Particulars 1999 Plan 2000 Plan 2004 PlanTotal number of options outstanding as on July 1, 2009 2,399,885 3,473,285 2,545,431Number of options granted during the year - - 240,000Pricing formula Market price/ internalvaluation24Market price Market price /price determinedby CompensationCommitteeNumber of options vested during the year 725,540 1,364,615 831,719Number of options exercised during the year 588,774 922,102 620,927Total number of shares arising as a result of exercise of options during the year 2,355,096 3,688,408 2,483,708Number of options lapsed during the year 288,254 200,003 85,392Variation in terms of options None None NoneMoney realised by exercise of options during the year (Rs. crores) (includesissued through Trust) 43.00 57.14 2.31Total number of options in force as on June 30, 2010 1,522,857 2,351,180 2,079,112Employees granted options equal to 5% or more of the total number of options None None Nonegranted during the yearEmployees granted options equal to or exceeding 1% of the issued capital None None Noneduring the yearFair value compensation cost for options granted (Rs. crores) N.A. N.A. N.A.Weighted average exercise price of options granted above market price N.A. N.A. N.A.Weighted average fair value of options granted above market price N.A. N.A. N.A.Weighted average exercise price of options granted at market price N.A. N.A. N.A.Weighted average fair value of options granted at market price N.A. N.A. N.A.Weighted average exercise price of options granted below market price (Rs.) N.A. N.A. N.A.Weighted average fair value of options granted below market price (Rs.) N.A. N.A. N.A.Method and signicant assumptions used during the year to estimate thefair values of optionsMethodSignicant assumptions Black schole Black schole Black scholeRisk free interest rate 8.10% 8.10% 8.10%Expected life upto 35 months upto 35 months upto 35 monthsExpected Volatility 26.67% 26.67% 26.67%Expected Dividend 3.65% 3.65% 3.65%The price of the underlying options in market at the time of grant (Rs.) N.A. N.A. N.A.Pre IPO Details of Stock Option PlanAs on June 30, 2010ParticularsESOP 1999 PlanNumber of options granted pre IPO 14,223,832Pricing formula Internal valuationNumber of options vested 11,648,957Number of options exercised 10,234,702Total number of shares arising as a result of exercise of options 40,938,808Number of options lapsed 3,989,130Variation in terms of options NoneMoney realised by exercise of options (Rs. crores) 259.41Total number of options in force as on June 30, 2010 -Fair value compensation cost for options granted (Rs. crores) 43.96Weighted average exercise price of options granted (Rs.) 255.00Weighted average fair value of options granted (Rs.) 36.65Method used to estimate the fair values of options Black-Scholes MethodSignicant assumptionsRisk free interest rate 10.00%Expected life12 to 110 monthsExpected volatility -Expected dividends 0.10%
Page 2 and 3: CONTENTSBoard of Directors 2Managem
Page 4 and 5: MANAGEMENT DISCUSSION AND ANALYSISI
Page 6 and 7: When looking at the growth opportun
Page 8: on reusable components and framewor
Page 11 and 12: developing best practices, developm
Page 13 and 14: Outsourcing costs includes (a) outs
Page 15 and 16: FISCAL 2010 COMPARED TO FISCAL 2009
Page 17 and 18: DIRECTORS’ REPORTDear Shareholder
Page 19 and 20: DEBENTURESDuring the year, the Comp
Page 21 and 22: eing, if the employee is satised, h
Page 23: (iii) Future plan of actionYour Com
Page 27 and 28: ANNEXURE 4 TO THE DIRECTORS’ REPO
Page 33 and 34: Administrator’s interpretation of
Page 35 and 36: independent view to the Company’s
Page 37 and 38: Nature of expertise in functional a
Page 39 and 40: 5. Ms. Robin AbramsS. No. Name of t
Page 41 and 42: usiness environment including busin
Page 43 and 44: management, or their relatives, etc
Page 45 and 46: Nominations CommitteeThe Nomination
Page 47 and 48: General Body MeetingsThe location a
Page 49 and 50: The Bombay Stock Exchange Ltd. (BSE
Page 51 and 52: f) Categories of shareholders as on
Page 53 and 54: 158, Arcot Road VadapalaniChennai-
Page 55 and 56: Hyderabad CentersGround & First Flo
Page 57 and 58: AUDITORS’ CERTIFICATEREGARDING CO
Page 60: Financial Statements
Page 63 and 64: (iv)(v)(vi)(vii)(viii)(ix)In our op
Page 65 and 66: Balance Sheet as at 30 June 2010(Al
Page 67 and 68: Cash Flow statement for the year en
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Schedules to the accounts(All amoun
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Schedules forming part of the accou
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Consolidated Statements
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Consolidated Balance Sheet(All amou
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Consolidated Cash flow statement(Al
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Schedules to the consolidated accou
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Schedules to the consolidated finan
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Statement regarding Subsidiary Comp
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Statement regarding Subsidiary Comp
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