20 13-14 Annual report

of HCL (Nethertands) B.V.

Registered office:
Address:

THE HAGUE
Prinses Margrietpiantseen 50
2595 BR THE HAGUE

-____________________________

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Table of contents
Directors report
1
2
3
4
5
6

Directors report
Balancesheetasatjune3O2ol4
Profit and loss account for the financial yearended June 302014
Statement of Cash Flows
Notesto the Financial Statements
Other information

2
7
8
9
10
19

Total number of pages in this report: 19

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Directors leport
1. Business development and envhenment

Corn business and revlew

HCL (Netherlands) B.V. (the Company~) Is a wholly owned subsidiary of HCL Great Brttain Limited, Maidenhead,
United Kingdom. The Company forms part of the HCL group, and the ultimate parent company is HCL Technologies
Limited registered in India.

The Company is active in the sectors of software-led IT solutions, extemaily controlled infrastructure management and
the outsourcing of business processes.

Annual yleld
~ Companyhas decreased to 42,209,826 in comparison to
45,049,483 in the previous financial year. Due to the decrease in the operating expenses, the profit margin has
increased and consequently the profit has increased for the financial year. The annual profit amounted to
3,143,100.

ii. Companysftuatjon
Financial situatjon
Tangible fbced assets and depreclatlon
The depreciation was conducted according to the linear depreciation method. Deductions are recorded pro-rata for
acquisftions and disposals. For the financial year, the depreciation amounted to 72,671 (2012/13: 59,044).
ShareCapital in FY2013/14
As on June 30,2014, the capital stock and capital surplus together amount to an unchanged 18,151.
DMdend
During the financial year the Company has paid dividend of 2,000,000 to its shareholcier HCL Great Britain Limited.

Cash flow
During the financial year in consideratjon, there was net cash outfiow of 1,828,377 (2012/13: net cash infiow of
1,823,740). The main reason for increase in cash outfiow is due to the decrease in other liabilities because of
decrease in account payable- Group companies.
Performance development

Development of sales: Satisfactory development of sales due to the strong market conditions.
Development of costs: The operating costs decreased com mensurate to the overall business of the Company.
Development of profits: The profits before taxes amounted to 4,17 1,173. After income taxes, there was a profit for
thefinancialyearof 3,143,100.
Personnel

Number and stnicture of employees

For the financial year, there was an average of 152 employees active in the Company (2012/13: 160).

Initialed

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Personnel guldelines
The Company is obligated to treat all employees with equality, independent of sex, race, color, handicap or family
status. The Company offers continuing education and training for handicapped employees. 1f the handicap occurs
after entering the Company, the Company is obligated to continue employing this individual and adequately qualifying
this employee. The Company is also obligated to regularly communjcate relevant intemal news and decisions. 1f
decisjons are made that affect the emp(oyees, the employees opinions will be considered during the decision
process.
RbI~ lnfiuenclng development
The software industry is continuing to grow in a dynamic and strongly competitive environment. This sector is
characterjze~j by fast technological changes and innovations that constantly challenge the existing and conventional
business models.
The Company is confronted with multiple business risks, the most important of which are detailed below:

Dependences/con~tjo~
The group led bythe parentcompany, HCLTechnologjes Ltd. in India, which HCL Netherlands (B.V.) belongsto,
maintains a broad customer base to ensure the independence from individual clients, special services, or
geographical factors.

Competitlon
In order to continue to have a strong position in the market and to remain competitive, the Company has invested
considerably in software technology and other offshore technologies.
Human resources
Keeping with the parent Company, the Company approved an initiative by the name of uEmployee first. Togetherwith
other measures, the goal of this initiative is to make the Company an attractive employer.
Principe1 rlsks and uncertalnties
The software industry thrives on a dynamic and highly competitive business environment, characterised by rapid
technological changes and innovations that constantty challenge the conventional business models. The Company
faces several business risks, of which prominent ones are discussed below along with the Companys strategy to
mitigate these risks:
1. Technology related risks
Risk
The Company operates in an ever evolving and dynamic technology environment and it is of utmost importance that
the Company continuously reviews and upgrades its technology, resources and processes to avoid obsolescence.
HCLs strategy
The Company is not dependent on any single technology or platform. It has developed competencies in various
technologies, platforms and operating environment and offers wide range of technology options to clients to choose
from for their needs.
2. Competftion related risks
Risk
The overall market growth is slowing and more and more competitors are vying with each other for market share. The
line is diminishing between the tradftional IT services players and non-traditjonal players. Now the customers have
more choices of technology, vendors and service models which force every entity to perform to their best capabilities
and to enhance them.

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HCLs strategy
The Company has been quick to respond to the changing competitive dynamics. Our business model is increasingly
shifting from the traditional outsourcing to a non-linear model and growth Is being triggered by the altemative
outsourcing approach.
3. Business continuity & information security
Risk
The Company is dealing in maintaining, developing and operating time critical Business and IT applications for
varlous customers and any catastrophe may halt business activities and cause irreparable damage to the brand
reputation of the Company. Similarly, the vital need for confidentiality and security of confidential data both
belonging to clients as well as the Company itself also pose risks of leaks, loss or compromise of information.
HCLs strategy
The Company has put in place a comprehensive business continuity program to ensure that It meets its business
continuity and disaster recovery related requirements. There is also an Information Security team to assess and
manage the information security and data privacy and related risks by leveraging on People, Processes & Technology.
Resean,h and Development
As the Company has the function of a sales office, the research and development is done centrally by HCL
Technologies Limited.
III. Prognosis of future development
The Directors believe that future profits wiU be created through the positive business development. In order to sustain
the business operations, the parent company is obligated to provide financial support if needed. The company will
focus on three catogeries of service for development of business:
Software Services : Information Technology (IT) services such as custom application development and
maintenance, technology services, product engineering, and package implementation.
lnfrastructure Services : Infrastructure related IT enabled services such as Remote lnfrastructure Management
(RIM), data centeroperations, end usercomputing, network management, and security management.
Business Process Outsourcjnp Services : IT enabled services such as technical helpdesk, back office
services, transactjon processing, and cali centerservjces.
Below are the berif Out look on bissuness:
1. Outlook on R&D:
The research and development is done centrally by the parent company, HCL Technologies Ltd.
2. Outlook on business (e.g. expectation of sales, customers, etc.), inciuding but not limited to:
The Company has strong customer base in the Netherlands and primarily having the active engagements with approx.
20 well known costumers.
Many of the engagements are pan European in nature so delivering services to multiple countries within EIJ region.
As Netherlands is conveniently located within EU region and given its strong economic performance is a good hub for
our growth in EU region. Plus, in order to service clients in the region the Company will invest in a local talent pool
more as opposed to delivering from global delivery centers. The Company requires significant amount of local
consulting capability and program management capability to manage such large dient engagements. The Company
has recently started the process to set-up a small delivery center in The Hague to service the clients across the region

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in the new wave of Customer Experience Service Delivery~ and to help clients to become more digitized
organizations.
This will create more employment opportunftles in the reglon and will ultimately lead more jobs in the local market.
Immediately, we do anticipate new jobs to be fulfilled from the local market either through direct recruitment or on a
contract basis from our local partners.
2.1 Strategy of financing and expected or planned future financing
The Company may require investment funds mostly on two fronts operational expense of the company and
sales/marketing investments. As per the plan, the Company does not need any bank or business credit in order to
property execute the business plan in the Netherlands and the same shall be financed from the HCL group company
for the meeting the funding requirement.

2.2 Strategy of human resources and expected or planned future changes to human resources
The Company is expecting to have growth in the business in Netherland as well as in EU regions, hence more
employment opportunities will result in the company.
2.3 Known future circumstances which significantly influence the profitability or recoverability
The Company is consistently growing year on year and also expecting a good business opportunities which will result
in not only in growth of the company but also growth of the region. The company is focusing on the following:
Engagement of local talent people more as opposed to delivering from global delivery centers.
~-

Significant amount of local consufting capabilfty and program management capability need to be added to
our overall portfollo
To pursue and explore inorganic means to acquire capability to meet our revenue goals and also capability
objectives

The Boaiti of Managlng Dlrecto,s

Prahlad Rai Bansal

Ani Kumar Chanana

The Hague, The Netherlands, S~epk~vnber 2~, 2,o~Lj

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FINANCIAL STATEMENTS
For the financal year 01-07-2013 to 30-06-2014

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2. Balancesheetasat June3O, 2014

All amounts in C after appropriation of result

Assets
June 30, 2014
Fixed assets
Tangiblefixedasse~
Current assets
Receivables
Inventory
Cash at bank

Note(1)

June 30, 2013

35,592

100,662

35,592

100,662

Note (2)

12,447,048

Note (3)

1,646,275

13,068,614
52,989
3,474,652

14,093,323

16,596,255

Total assets

-_14,128,9 15

16,696,917

Shareholders equity and Ilabilities

Shareholders equlty
Sharecapital
Retained eamings

Current Ilablifties

June 30, 2014

June 30, 2013

18,151
5,069,312

18,151
3,926,2 12

5,087,463

3,944,363

9,041,452

12,752,554

14,128,915

16,696,917

Note (4)

Note (5)

Total shareholders equlty and llabilftles

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3. Profit and loss account

for the financal year ended June 30, 2014

June 30, 2014

Net tumover
Cost of Sales

Note (6)
Note (7)

Total operatlng Income

Wages and salaries

Pensions and social security charges
Depreciatjon of tangible fixed assets
Other operating expenses

Note (8)
Note (9)
Note (10)
Note (11)

Total operathig expenses

Financial income and (expense)

Note (12)

Profftbeforetaxafjon
Income taxes
Net profit

Note (13)

June 30, 2013

42,209,826
(26, 186,220)

45,049,483
(29,599,313)

16,023,606

15,450,170

(8,150,157)
(1,367,885)
(72,671)
(2,201,041)

(8, 962,530)
(1,263,115)
(59,044)
(2,414,802)

(11,791,754)

(12,699,491)

(60,679)

(150,098)

4,171,173

2,600,581

(1,028,073)

(602,770)

3,143,100

1,997,811

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4. Statement of Cash Rows

for the financial year ended June 30,2014

June 30,2014

June 30, 2013

4,171,173

2,600,580

72,671
5,441
(3,28 1)
343, 186
278,379
52,989
(4,156,719)
(582,455)
181,384

59,044
5,659
(975)
2,599,176
(33,401)
223,338
1,124,387
(1,711,010)
4,866,798

3,281
(7,601)
(4,320)

975
(36,735)
(35,760)

(2,000,000)

(3,000,000)

(5,441)
(2,005,441)

(5659)
(1,639)
(3,007,295v

(1,828,377)

1,823,740

3,474,652
1,646,275

1,650,91.2
3,474,652

Operavngact]Wties
Profit before tax
Adjustments to reconcile net income witti
net cash provided by operating activitles:
Depreciation of tangible fixed assets
Interest expense
Interest Income
Change In receivables

-Change in otbercurrentassets
Change in inventoiy
Change in long term and short term liabilities
Income tax paid
Net cash provided by operating activities
-

investingach WtIes
Interest received
Investment in tangible fixed assets
Net cash used in investing activities
-

Financingactivitfes
Dividend paid
Interest paid
Interest paid to group company
Net cash provided byfinancing activities
-

Change in cash

Cash at beginning of financial year

Cash atend offinancialyear

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Notes to the Financial Statements

General
The Company forms part of the HCL group, the ultimate parent is HCL Technologies Ltd. at Uttar Pradesh, India. HCL
Netherlands B.V. is a whoIeiy owned subsidiary of HCL Great Britain lJmfted at Maidenhead, United Kingdom.

Basis for pi~peratIon of the flnancial Statements

(i)

The financial statements are prepared in accordance with Part 9 of Book 2 of the Dutch clvii code.

Accounting Policies
(ii)

Use of estimates

The preparation offinancial statements in conformitywfth Dutch GAAP requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and ilabilities
at the date of the financial statements and the reported amounts of revenues and expenses during the reporting
period. Exampies of such estimates inciude estimates of expected contract costs to be incurred to complete software
development, provision for doubtful debts and estimated useful life of fixed assets. Actual resuits could differ from
these estimates. Any revision in accounting estimates is recognised prospectively in current and future periods.
(ii~

Fixed assets

Fixed assets are stated at the cost of acquisition inciuding incidental costs reiated to acquisition and Installation.
(iv)

Depreciation of tangible fixed assets

Depreciation of fixed assets is provided on the straight-Iine method based on estimated usefui ilves as estimated by
the management. Depreciation is charged on a pro-rata basis for assets purchased/ sold during the year. Assets
costing less than 60.82 (approximately Rs.5,000) are fully depreciated in the year of purchase. The managements
estimate of the useful life of the various fixed assets is as foliows:
Description
Plant & Machinery
Computers
Software
Fumiture, fixtures
and office equipment
(v)

Life (in years)

4
3
2
4

Operating Leases

Lease payments under an operating lease are recognised as an expense in the profit and loss account on straight
line basis over the lease term.

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(vi)

Revenue recognition

Revenue from software services comprlses income from time and material and fixed price contracts. Revenue with
respect to time and material contracts is recognized as related services are performed. Revenue from fixed price
contracts and fixed time frame contracts is recognized in accordance with the percentage completion method under
which the sales value of performance, including eamings thereon, is recognized on the basis of cost incurred in
respect of each contract as a proportion of total cost expected to be incurred. The cumulative impact of any revision in
estimates of the percentage of work completed is reflected in the year in which the change becomes known.
Provisions for estimated losses are made during the year in which a loss becomes probable based on current contract
estimates. Revenue from sate of licenses for the usa of software appilcations is recognized on transfer of title in the
user license. Revenue from annual service contracts is recognized on a pro rata basis over the period in which such
services are rendered. Income from revenue sharing agreements is recognized when the right to receive is established.
Eamings in excess of billing are classified as unbilled revenues, while billing in excess of eamings are classified as
uneamed revenue. lncremental revenue from existing contracts arising on future sales of the customer~ products will
be recognized when It is eamed. Revenue and related direct costa from transition services in outsourcing
arrangements are deferred and recognized over the perlod of the arrangement. Certain upfront non-recurring costa
incurred in the initial phases of outsourcing contracts and contract acquisition costa, are deferred and amortized
usually on a straight line basis over the term of the contract. The Company periodically estimates the undiscounted
cash flows from the arrangement and compares It with the unamortized costa. 1f the unamortized costa exceed the
undiscounted cash flow, a loss is recognized.
The Company accounts for volume discounts and pricing incentives to customers. The discount terms in the
Companys arrangemefits with customers generally entitle the customer to discounts, 1f the customer completes a
specified level of revenue transactions. In some arrangements, the level of discount varies with iricreases in the levels
of revenue transactions. The Company recognizes discount obligations as a reduction of revenue hased on the ratable
allocation of the discount to each of the underlying revenue transactions that result in progress by the customer
toward eaming the discount.
Revenues are shown net of sales tax; value added tax, service tax and appllcable discounts and aluwances. The
revenue is recognized net of discounts and allowances.
(vii)

Expenditure

Expenses are accounted for on the accrual basis and provisions are made for all known losses and liabilities. The cost
of services for software development is charged to profit and loss account in the same year.
(viii)

Foreign exchange transactions

Foreign exchange transactions are recorded at the exchange rates prevailing at the date of transaction. Foreign
currency Realised gains and losses on foreign exchange transactions are recognised in the profit and loss account.
Foreign currency monetary assets and liabilities excluding loans in the nature of permanent investment are translated
at the financial year end rates and resultant gains/losses on foreign exchange translations are recognised in the profit
and loss account.
(ix)

Employee benefits

The Company and employees contribute to the social security scheme in accordance with the local statutory
requirements. The employees of the Company are entitled to compensated absences. The Company records an
obligation for compensated absences in the period in which the employee rendets the service that increase this
entitlement. The Company measures the expected cost of compensated absence as the additional amount that the
Company expects to pay as a resuit of the unused entitlement that has accumulated at the balance sheet date.

Initialed
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(x)

Pension

The Company has contributory pension plans covering all its employees. Pension obligations are funded through
annual premiums.
(xi)

Taxatiopi

Company tax is calculated at the applicable rate on the resuft for the financial year, taking into account permanent
differences between profit calculated according to the financial statements and profit calculated for taxation
purposes, andwithwhlch defferedtaxassets(jfapplicable) areonlyvalued insofarasthejrreali~tion is likely.
(xii)

Provisions and Contingent liabilities

A provision is recognised when there is a present obligation as a result of a past event, it is probable that an outfiow of
resources will be required to settie the obligation and in respect of which reliable estimate can be made. A disciosure
for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will
not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which
the likelihood of outflow of resources is remote, no provision or disciosure is made.
(xiii)

Risks:

Financial risk management

The Companys operations expose itto a variety of financial risks that includeforeign exchange rate risks, credit risks
and Iiquidity risks. The group has adequate controls in place that seek to minimise the adverse effects of these
financial risks on the companysfinancial performance.

Foreign exchange rate risk

Foreign exchange rate risk arises from future commercial transactions and recognised assets and liabilities that are
denominated in a currency that is not the companys functional currency. Foreign currency monetary items are
reported using the closing rate. Non-monetary items which are carried in terms of historical cost denominated in a
foreign currency are reported using the exchange rate at the date of the transaction. Exchange differences arising on
the settlement of monetary items, or on reporting such monetaty items of company at rates different from those at
which they were initially recorded during the year, or reported in previous financial statements, are recognized as
income or as expenses in the year in which they arise.

Credit risk

The Company has no significant concentrations of credit risk as the company has a large number of customers which
are based in the UK. It has policies in place to ensure that the provisions of consulting services are made to renowned
customers or those with an appropriate credit history. The company also has policies and procedures in place for the
control and monitoring of its credit risk. The company has a dedicated team forthe close follow up for realisation from
the customers and adequate provision for doubtful debts is created wherever required as per group policy. During the
yearthere was no significant amount identified for which the company is required to create the provision.

Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and short term bank deposits. The Directors do
not see any significant liquidity risk involved. The companys liquidity risk is further mitigated through the availability
of financing from its ultimate parent undertaking.

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(lxv)

Notes to the statement of cash flows

The Company appiles the indirect method. The statement of cash flows is derived from the profit and loss account and
other changes between the opening and closing balance sheets, eliminating the effect of currency translation
differences.

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Tangible fixed assets (1)

lune 30. 2014

June 30. 2013

35,592

100,662

35,592

100,662

Machinery and equipment

Movements in these ftemswere asfollows:

Machlnery
and
equipment
Net bookvalue atiuly 1,2013
Additions
Depreciation
Net book value at iune 30, 2014
Accumulated depreclatio n

100,662
7,601
(72,67 1)

122,971
36,735
(59,044)

35,592

100,662

296,193

223,522

Tangible fixed assets are:

valued at purchase price minus accumulated depreciatjon;
depreciated Pinearlywith a fixed percentage of the purchase price, based on the estimated economic Jifetime.

Recelvables (2)
Trade receivables
Amounts receivable from group companies
Other amounts recejvable
Prepayments and accrued income

June 30. 2014

7,581,927
2,430,164
124,530
2,310,427

June 30.2013
8,678,026
1,677,251
159,402
2,553,935

12,447,048

13,068,614

The provision fordoubtful debts charged to Trade receivables amounted to 154,766 (2012/ 13: 239,615) and has been
charged to the profit and loss account.

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Other receivables can be broken down as follows:

Staff advances
Other receivables

,lijneL3O. 2014
55,698
68,832

lune 30.2013
120,410
38,992

124,530

159,402

Prepayments and accrued income can be broken down as follows:

Deferred cost
Unbilled receivables
Other prepayments

Ji~ne20. 2014
45 1,2 10
1,213,187
646,030

Jiji~e30. 201~
60 1,048
1,067,753
885,134

2,3 10,427

2,553,935

Cash at bank (3)

Cash atbank

June 30.2014
1,646,275

June 30.2013
3,474,652

1,646,275

3,474,652

There are no restrictions on the availability of cash and cash equivalents. These are readily available.

Shareholders equity (4)

Share Capitali
Balance atiuly 1, 2013
Profit forthe year 2013/14
DlstributjonofdMcjend
Balance atiune 30, 2014

18,151
-

18,151

Retalned
Eamlngs
3,926,212
3,143,100
(2,000,000)
5,069,312

Total
3,944,363
3,143,100
(2,000,000)
5,087,463

Current Ilabilities (5)

Trade creditors/suppilers
Amounts payable to group companies
Taxes and social security contributions
Accrijals and deferred inconie

,[une 30, 2Qj4

174,650
3,287668
1,274,116
4,305.0 18

Ji4ne 30. 2013

90,41,452

12,752,554

303,920
6,667,937
1,132,961
4,647.736

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Accruals and deferred income recognised in the balance sheet can be broken down as follows:

Accrued holidayentjtlements and overtime

Bonuses/profit sha re payable
Other costs payable
Deferred Revenue

June3O.2Qj.4
321,934
465,392
1,9 16,483
1,60 1,209

June30.2Q~
451,670
480,768
1,339,792
2,375,506

4,305,018

4,647,736

The taxes and social security charges payable recognised in the balance sheet can be broken down as follows:

Social securitycontributjons payable

VATpayable
Payroll tax payable
Corporate incometaxpayable
Income tax payable

Jiine 30. 2014

h~ne30. 2_Q1~
95, 728
787,688
137,651
111,894
1, 132,961

58,369
603,152
55,083
557,512
1,274,116

Net tumover (6)

Standard software services

Sale of goods

For the financial year ended June 30.2014

Third
Inter.
Total
Parties
Company
38,546,227
3,619,220
42,165,447
44,379
44,379
-

38,590,606

Standard software services

Sale of goods

3,619,220

42,209,826

Forthe financial year ended June 30.2013

Third
InterTotal
Partjes
Company

39,713,028
120,475

5,2 15,980
-

44,929,008
120,475

39,833,503

5,215,980

45,049,483

Cost of Sales (7)

Consuiting charges group

Consulting charges Others
Costofgoodssold
Otherdjrectcost

foi~e flnan~I~I
year end~
,hine_30.
2014
24,171.922

Forthe flnanclal
vear ended
1ijne~30,
2013
24.267,297

565,328
49,765
1,399,205

867,777
314,233
4,150,006

26,186,220

29,599,313

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Wages and salarles (8)

Wages and salarjes

Otherstaffcosts

For the flnan~I

year ended
.hiiw30.
2014
7,909,333
240,824

For the financial

year eiide4
June3O.
2013
8,617,480

8,150,157

8,962,530

345,050

The fixed differentiateci insurance premiums for future risks relating to employee disabillty are not expected to have
any material effect on future staff costs.

The statutory directors did not receive any remuneration in the current financial year (2012/13 : Nu).

Pensions and social security charges (9)

E~tthe financial
Pension charges
Social security charges

For the flnn~1

~ear en~4

vear n~~

hineZO. 2014
183,024
1,184,861

June 30. 2013

137,57 1
1,125,544

1,367,885

1,263,115

Forthe fln~~j

For the financipl

year ~

Other operating expenses (10)

Other operating expenses

Legal and professional charges
Travel costs
Establishment& maintenance
Mart~etingcosts
Communjeatjon
Total other operating expenses

year en4e4
June3O.
2014
280,53 1
245,472
681,135
165,568
108,398
719,937
2,201,041

Jiine 30.2013
913, 761
114, 162
542,6 16
78,737
175,871
589,655
2,414,802

Financial income and expense (11)

Fortheflna~jd~
interest expenses and similar charges relating to group companies
Interest and similar income relating to group companies
Loss on foretgn exchange fluctuations
Miscellaneous financial expenses
Total financial (income) / exp~nse

June 30. 2014

5,441
(3,281)
45,948

12,571

Forthefinpn~j
vear ended
June 30. 2013
5,659
(975)
122,472
22,942

60,67

ni ta e
~dentih:ti:urposes~~~y

18

Income taxes (12)

The tax charge in the profit and loss account can be broken down as follows:

Taxes on profit for the financial year

Totaltax charge

Forthefln.~p~~
year endedJiii~
30.~14
1,028,073

fQrU1efinancf~
year endedJij~
30.2013
602,770

1,028,073

602,770

The effective tax rate for the financial year is 24.65% (2012/13: 23.18%).

Workforce(13)
The average number of staff employed by the company in 2013/14 was 152 (2012/13:160) and all employees are
located in the Nethertands.

Equity lntei~sts (14)

(Uit/mate) Parentcompany
HCL Technologies Limited, is the ultimate parent company of HCL (Netherlands) B.V. and inciudes the financial data
of HCL (Netherlands) 8.V. in its consolidated financial statements.

Commitments and contingencies (15)

tiabillty
The Company has a rent agreement concerning the office building with an annua 1 rent of 71,562. The rent is indexed
yearly, the remaining duration of this agreement is 53 months.
The Company has a rent agreement concerning parking spaces with an annual rent of 7,849 The rent is indexed
yearly, the remaining duration of this agreement is undefined.
the Company has issued a guarantee of 19,287 in favour of Bouwinvest Dutch Institutional B.V. The guarantees
have no fixed expiry date.

Operatingiease,, the companyasIes,~ee

-

The Company has conciuded operating leases as lessee relating to Office Premises. The future minimum lease
payments can be broken down asfollows:
Less than lyear
Between land 5years
Morethansyears

Total

,[uiie3o.71,562
2014

~iine_30.29,150
2013

244,505
-

316,067

29,150

Othe,comm/tmen~ notshown in the baiance sheet

No guarantees have been issued by the Company for members of the Board of Managing Directors, its group
companies orsubsidiaries.
All commitments to related partjes are inciuded in the balance sheet.

Initiale4
for identific ion purposes only
countants LLP
Build~ng a better
working world

19

Audit fees (16)

The costs of the Company forthe external auditor, the audit organisation and the entire network to which the audit
organisation belongs charged to the financial year are set out below:
Ernst and Young
Accountants LLP
AuditofFinancialstatementa

7,080

Total

7,080

Other than Ernst

-

Other information

Articles of Association provislons goveming profit approprlatlon

In accordance with the Companys Articles of Association the result is at the disposal of the Shareholders meeting.
The Company can only distribute profits to its sharehoider and other entitled entities, as far as Shareholders equity
exceeds the total of the issued and paid-up share capital togetherwfth the statutory and legal reserves.

Subsequent Events
The Company has evaluated all the subsequent events through ~ ~3,~4~7which is the date on which these
financial statements were issued, and no events have occurred from the balance sheet date thmugh that date that
would have material impact on the financial statements.

The Boaid of Managing Dlrectoi~

Prahlad RaI Bansal

Date:

Sep)-r~b~-

Anli umarChanana
~2~,2~o1L1

Initiafd
for identjfi .tion pur..
1

nly

rnst & oung Accountants LLP

BuiIdir,~ a better
workirrq world