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NEW DELHI: Software major HCL Technologies Ltd has said it has restructured its treasury investment portfolio, following the amendments proposed by Union Budget 2002 with regard to the tax treatment of dividends received from debt mutual funds.

As part of restructuring, a substantial part of the investments in debt mutual funds have been moved from dividend plan to growth plan, the company said in a statement here.

These are long-term investments and under normal circumstances would not be redeemed before one year. Thus the income from these investments would primarily be in the form of long-term capital gains, which are subject to concessional tax rates. As per the US GAAP, income recognition relating to mutual fund units is allowed only when the gains are realised in cash either through dividends or by way of redemption of such units. As a result of the restructuring of investments, the accrual of other income of HCL Technologies in the next two quarters would be significantly lower compared to the previous quarter and would thus impact the net income under the US GAAP of the company in this period, the statement added.

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