Annual Report

Annual report gives the information about a companys past performance and plans of future growth
which could give the stakeholders an understanding of the companys business. It also includes the
financial statement. The main sections of a typical annual report are mentioned below:

Chairman's Letter

Written by Chairman of the board and provides overview of past years key development and
challenges. It should also include the future prospects for the company, including insights about the
market and growth opportunities.

Management Discussion and Analysis

It provides a synopsis of the previous years performance and development of the company including
things like acquisitions, new product introductions and other information that the management
believes is important.

Financial Statements

Includes income or profit and loss statement, balance sheet and cash flow statement for the previous
year and prior years. It also includes consolidated and stand-alone financial statement.

Corporate governance report

Disclosure about management, board members, board meetings, share ownership etc.

Boards report to shareholders

Share dividends, profit-loss, number of outstanding shares etc.

Difference in US and Indian annual reports

In US, all the financial statements are to be filed in Form 10K and need not again be presented
completely in annual reports; but, in India it is necessary to be presented in detail in annual reports.
In US, the financial year can start in any quarter and end correspondingly, but in India it has to start
from March.

TCS
TCS is an information technology services, consulting and business solutions company. The Company
provides end-to-end technology and technology related services to corporations all over the world.
Key business drivers
Availability to retain customers - Customer-centric approach resulted in more repeat business,
leading to an across-the-board movement of clients into higher revenue buckets.
Investing in newer geographies - In FY 2015, the company continued to execute on this
strategy, acquiring a significant beach-head in Japan through a joint venture with Mitsubishi
Corporation, coming on the heels of the acquisition in France in FY 2014. This helps in
reaching to new markets and hedging the risk of stark decrease in revenue due to breakdown
of macro-economic variables in few geographies.
Continued investments in digital solutions - Continued investments in digital solutions are
paying handsome dividends in terms of winning the market share for the company. Cloud
platforms continued to gain scale and crossed the $100-million mark in terms of revenue runrate and together with Diligenta (UK based, Financial Services Authority (FCA) regulated
subsidiary of Tata Consultancy Services (TCS)), contribute over $500 million in revenues.
Strong R&D - TCS R&D has now over 100 PhDs and over 30 doctoral candidates. A significant
amount of intellectual property has been created for the Company with 300+ papers
presented in top tier conferences and journals. The number of patents filed in the year 201415 was 509, taking the cumulative tally to 2,277, with the total number of patents granted
reaching 206. Strong R&D is important for an industry which witnesses disruptive changes on
a high frequency.
Inorganic growth Acquisitions across globe to reach more markets. On July 1, 2014, TCS Ltd,
through its wholly owned subsidiary Tata Consultancy Services Asia Pacific Pte Ltd., acquired
controlling interest (51%) in ITF from Mitsubishi Corporation in Japan.
Financials
Revenue decreased from the previous fiscal year (2013-14), but the decrease was due to payment of
one-time reward to eligible employees, which increased the employee expenses by 2,627.91 crores.
If the one-time payment is removed from the expenses, the EBITDA, PAT and EPS have all increased
from the previous year.

Honeywell Automation India Ltd.

Business (Source: Annual report 2014-15)
Honeywell Building Solutions (HBS) provides solutions and services for facilities such as Commercial
& Industrial Buildings, IT & ITES industry, Hospitals, Hotels, Airports etc.
Honeywell Process Solutions (HPS) serves core industrial sectors of Refining, Oil & Gas, Pulp &
Paper, Metal and Cement etc.
Environment and Combustion Control (ECC) serves multiple brands through channels and offers
environmental and combustion products and solutions to commercial, hospitality and industrial
segments.
Sensing & Control (S&C) business provides various sensors and switches to manufacturing and
automobile industry. This business serves primarily OEMs in various manufacturing industries such as
auto, medical instrumentation, IT, etc.

 Exports Business Group (EBG) addresses manufacturing and engineering services needs of
Honeywell along with some other non Honeywell customers across the globe, leveraging the cost,
skills and knowledge arbitrage.
Key business drivers

Heavy dependence on external macro-economic factors - Operating results of infrastructure

related industries are significantly influenced by macro-economic trends such as industrial
production, capital spending on process and building automation, commercial and
infrastructure construction, commodity prices and foreign exchange variations. The company
did not do well and one of the reason could be muted investment activity across sectors,
particularly in industrial due to uncertainty in the economy. Bank lending activity to the
corporate sector did not significantly increase in the year 2014-15.
Increasing production capacity in appliances using renewable energy The company
continued to strengthen its presence in the residential vertical with a strategic investment in
setting up a solar water heater factory in Vadodora. The factory was inaugurated in 2014 and
will enable in taking Honeywell brand to Indian homes. Solar water heater business is in its
early cycle and the environment awareness could drive growth and expand margins in coming
years.
Sales and marketing strategy for field devices and building management business - Commercial
real estate sector contributes around 2/3 of ECC business and continued to be the focus. In
the fiscal year 2014-15, the sector drove good increase in revenues and in profitability for the
business. This performance is primarily attributable to the companys continuous
improvement in sales and marketing strategy for field devices and building management
business.
Experience in Infrastructure, Transportation, IT, Datacenters, Pharmaceutical and Office Space
verticals
Technology absorption- The Company is an affiliate Company of Honeywell International Inc.,
and on merits it continues to have access to some of the latest products and technology of
the parent Company.

Financials
Although the domestic segment registered net revenue of Rs. 1,641 crore for 15 month current
period vis--vis Rs. 1,159 crore in the 12 month previous year, yet profits as percentage of sales
decreased from 5% to 4.8% raising an alarm and need to be compared to industry average. Cash flow
from operations was at Rs. 13 crores, (previous year Rs. 192 crore), was an area to consider even
though some long-term projects were in pipeline.

Hyundai Motor company (Korea)

Produces premium cars.
Key business drivers

Great Marketing budget - In 2014, as an official sponsor of 2014 FIFA World Cup Brazil,
Hyundai Motor planned diverse marketing activities that could strengthen communication
and connection with customers to convey the image of Modern Premium. This is a need as
the company deals in products whose sale depends highly on its visibility in the market.
Investment in new technology CO2 zero emission cars have been ideated and have drawn
investments. It is a major step towards attracting environment conscious crowd.

Localised models tailored for local use also are necessary to attract consumers.

Financials
Although the PAT decreased for the fiscal year ending on Dec, 2013 from Dec, 2012; yet the decrease
was mainly due to decrease in income from financial investments. The operating income increased,
showing a positive sign for the company.

DLF

Heavy dependence on external factors - The real estate sector which is requires high
investment continued to face a challenging environment due to lacklustre demand scenario in
2014-15.
Tendering of government projects in infrastructure is important The government projects are
generally large in nature and winning the bid is important. The Government, however, pushed
big ticket reforms to provide housing for the masses with the introduction of their policy viz.
Housing for All by 2022.
Availability of capital, leverage Being capital intensive industry, availability of capital is a key
business driver to continue the projects in hand and make capacity for future projects. DLF
was the first company in India to issue Commercial Mortgage Backed Securities CMBS
amounting to 900 crore which were rated CRISIL[AA] with Stable outlook. The Company is
planning another large issuance in the near future which will go a long way to improve the
quality of debt and also substantially reduce costs.
Mitigation of risk Fluctuation in inflation and labor costs can heavily effect the profitability
since the leverage ratio is too high and if not mitigated, these fluctuations can amount to
huge losses. In order to mitigate the risks relating to commodity inflation and rising labour
costs, DLF had introduced an escalation clause in some of its development projects.
Availability of land at strategic locations For any company that deals in building commercial
and residential buildings, availability of plots in strategic locations is highly important. As on
31st March, 2015, DLFs development potential over land/development rights owned/land for
which appropriate arrangements including collaboration and joint development agreements
exists with land owners was 290 million square feet.

Financials
In FY15, DLF reported consolidated revenues of INR 8,168 crore, a decrease of 17% over INR 9,790
crore in FY14. EBIDTA stood at INR 3,543 crore, a decrease of 11% from INR 3,977 crore in the
previous year. Net profit after tax, minority interest and prior period items was at INR 540 crore, a
decline of 16% from INR 646 crore. The EPS for FY15 stood at 3.03 as compared to 3.65 for FY14.
Although the consolidated revenue, profits etc. decreased but the standalone profits and revenues
increased, thus demanding a look in the financials of its children companies and SPVs.