1) Is it necessary to upgrade kernel level? If yes then up to what level?
>>It may not be necessary but recommended for you to apply latest patch level of 720 kernel.
2) How to find out dependent sw components?
>> you should Solution manager MOPZ to generate stack xml file and MOPZ will take care of all dependency.
3) Is there need to increase patch level of other sw components( SAP_BASIS,SAP_ABAP etc) If yes then up to what level?
>>you should Solution manager MOPZ to generate stack xml file and MOPZ will take care of all dependency.
4) Is it necessry to increase patch level of other HR related sw sub components (SAP_HRCAR,SAP_HRCAT etc)?
>> I think solution manager MOPZ will be best to answer this, let it calculate consistent queue for you. But yes, mostly all of them will get updated as well.
5) Detailed procedure?
>> first generate stack xml file with Solution manager MOPZ and after this you can use SUM tool for applying these.
Check SUM guide for details.
best regards
ashish