HCL Technologies is an Indian global IT services company headquartered in Noida,
ID: 1206725 • Letter: H
Question
HCL Technologies is an Indian global IT services company headquartered in Noida, India. HCL Technologies continued its expansion into the U.S. by recently acquiring CapitalStream, a Seattle, Washington, provider of software that enables commerical banks to establish integrated financial supply chains. As a subsidiary, CapitalStream generates revenue in dollars for its parent company, HCL Technologies. Consider the movement of the exchange rate of the U.S. dollar to the Indian rupee from April 1, 2014 to April 1, 2015. Would HCL Technologies approve or disapprove of the exchange rate movement of the dollar and why?
A. Approve. During the year, the dollar appreciated. As a result, HCL Technologies' revenue from CapitalStream's services in the U.S. was higher when converted from dollars to rupees
B. Approve. During the year, the dollar depreciated. As a result, HCL Technologies' revenue from CapitalStream's services in the U.S. was higher when converted from dollars to rupees.
C. Disapprove. During the year, the dollar appreciated. As a result, HCL Technologies' revenue from CapitalStream's services in the U.S. was lower when converted from dollars to rupees.
D. Disapprove. During the year, the dollar depreciated. As a result, HCL Technologies' revenue from CapitalStream's services in the U.S. was lower when converted from dollars to rupees.
Explanation / Answer
Exchnage rate in april 2014- 60.342199 INR/$
Exchnage rate in april 2015- 62.656571 INR/$
As can be clearly seen during this year, rupee has depreciated and the dollar appreciated. As a result, HCL Technologies' revenue from CapitalStream's services in the U.S. was higher when converted from dollars to rupees. Thus HCL will approve this change as it is getting more revenue is rupees.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.