WIT Wipro Ltd

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 6-K

 

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16

under the Securities Exchange Act of 1934

For the month of July 2015

Commission File Number 001-16139

 

 

Wipro Limited

(Exact name of Registrant as specified in its charter)

 

 

Not Applicable

(Translation of Registrant’s name into English)

Karnataka, India

(Jurisdiction of incorporation or organization)

Doddakannelli

Sarjapur Road

Bangalore, Karnataka 560035, India +91-80-2844-0011

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F:

Form 20-F  þ             Form 40-F  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): Yes  ¨    No  þ

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): Yes  ¨    No  þ

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

 

 

 

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DISCLOSURE OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION

We hereby furnish the Commission with copies of the following information concerning our public disclosures regarding our results of operations for the quarter ended June 30, 2015. The following information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

On July 23, 2015, we announced our results of operations for the three months ended June 30, 2015. We issued a press release announcing our results under IFRS, copy of which is attached to this Form 6-K as Item 99.1.

On July 23, 2015, we held a press conference to announce our results. The presentation made by the registrant at the press conference is attached to this Form 6-K as Item 99.2.

We placed advertisements in certain Indian newspapers concerning our results of operations for the three months ended June 30, 2015 under IFRS. A copy of the form of this advertisement is attached to this Form 6-K as Item 99.3.

We make available on our website the Condensed Consolidated Interim Financial Statements as of and for the three months ended June 30, 2015 under IFRS. A copy of such financial statements are attached to this Form 6-K as Item 99.4.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly organized.

 

Dated: July 29, 2015

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INDEX TO EXHIBITS

 

Item
99.1		IFRS Press Release
99.2		Presentation made by the Company at the Press Conference on July 23, 2015
99.3		Form of Advertisement Placed in Indian Newspapers
99.4		Consolidated Interim Financial Statements under IFRS

Exhibit 99.1

 

FOR IMMEDIATE RELEASE

Results for the quarter ended June 30, 2015 under IFRS

Gross Revenues grew 10% YoY

IT Services Revenue grew in line with guidance

Bangalore, India and East Brunswick, New Jersey, USA – July 23, 2015 — Wipro Limited (NYSE:WIT) today announced financial results under International Financial Reporting Standards (IFRS) for its first quarter ended June 30, 2015.

Highlights of the Results for the Quarter ended June 30, 2015:

 

•

Gross Revenues were 122.4 billion ($1.9 billion1), an increase of 10% YoY.

 

•

Net Income2 was 21.9 billion ($344 million1), an increase of 4% YoY.

 

•

IT Services Segment Revenue was $1,794.1 million, a sequential increase of 1.1%

 

•

Non-GAAP constant currency IT Services Segment Revenue in dollar terms grew 0.2% sequentially and grew 8.1% YoY

 

•

IT Services Segment Revenue in Rupee terms was 115.8 billion ($1.8 billion1), an increase of 10% YoY.

 

•

IT Services Segment Results was 24.3 billion ($382 million1), an increase of 1% YoY.

 

•

IT Services Segment Margins was 21.0% for the quarter.

Performance for the quarter ended June 30, 2015

T K Kurien, Member of the Board & Chief Executive Officer of Wipro, said – “On the Run side, deals are getting increasingly competitive and we are focused on increasing the levels of automation, while on the Change side, new stakeholders are influencing buying decisions in the Digital space. On the Run side, we continued to win deals which deploy Wipro HOLMES^TM, our Artificial Intelligence platform to drive down costs for our customers. On the Change side, we have announced the acquisition of Designit, one of the largest independent global strategic design firms. Designit’s design capabilities in synergy with Wipro’s scale in technology services will position Wipro uniquely in Digital, as an integrated design & technology player.”

Jatin Dalal, Chief Financial Officer of Wipro, said – “We continued to drive productivity and improve operating levers even as we invested for growth in people, process and IP. In the quarter, we maintained strong cash flow generation while operating margins were, on predictable lines, modestly lower due to employee compensation measures.”

Outlook for the Quarter ending September 30, 2015

We expect Revenues from our IT Services business to be in the range of $ 1,821 million to $ 1,857 million*.

* Guidance is based on the following exchange rates: GBP/USD at 1.56, Euro/USD at 1.13, AUD/USD at 0.78, USD/INR at 63.86 and USD/CAD at 1.22

IT Services

The IT Services segment had a headcount of 161,789 as of June 30, 2015. We added 36 new customers during the quarter.

 

1.

For the convenience of the reader, the amounts in Indian Rupees in this release have been translated into United States Dollars at the noon buying rate in New York City on June 30, 2015, for cable transfers in Indian rupees, as certified by the Federal Reserve Board of New York, which was US $1= 63.59. However, the realized exchange rate in our IT Services business segment for the quarter ended June 30, 2015 was US$1= 64.53

 

2.	Refers to ‘Profit for the period attributable to equity holders of the company’

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Wipro continued its momentum in winning Large Deals globally as described below:

Wipro has been selected by one of the largest upstream oil and gas companies in Oman as its IT Partner to implement an ‘Integrated IT Services Contract’. The five-year engagement aims to improve operational efficiency across the organisation by integrating managed services for help desk, applications and telecom.

Wipro won a multi-year total outsourcing deal spanning Applications, Infrastructure and Business Process Services in a pay-per-use model from one of the largest construction companies with operations around the world. This engagement will transform the customer’s technology estate to drive simplification, scalability, agility and cost optimisation.

Wipro won an IT outsourcing deal from a global leader in marketing services for Small and Medium Businesses (SMBs). Wipro will provide applications and infrastructure services to the customer’s business units in the US, UK and Spain. The deal includes tools for automation and innovation, all of which are being offered in an Opex-based commercial model.

Corporation Bank has chosen Wipro to transform its existing core banking solution. This is a technology transformation initiative covering core transaction processing, channels across Internet and Mobile Banking, Risk Based Internal Audit and Enterprise Performance Management Applications. This project aims at providing Corporation Bank and its customers with an enhanced uptime and better response.

Wipro Ventures

During this fiscal year, Wipro made an investment in Talena, an early-stage company building innovative Big Data Availability Management Solutions.

Wipro also made an investment in Vicarious, an early-stage company developing the next-generation of Artificial Intelligence algorithms and solutions.

Digital highlights

Wipro Digital, the digital business unit of Wipro Limited, on July 9, 2015, announced its intention to acquire Designit, an award-winning global strategic design firm specializing in designing transformative product-service experiences. This investment marks a further stage in Wipro’s move to evolve the digital offerings it takes to market, combining its reputation and heritage in deep engineering and transformative technology with human centered-design methods.

Wipro has been awarded a strategic Application Development and Management contract by Allied Irish Bank, a leading bank in Ireland offering a full range of personal and corporate banking services. Wipro will manage and transform their Digital and Online Channels, Data and Enterprise support services & Applications estate over a period of 5 years.

This win builds on recent successes by Wipro Digital, including selection by a North American bank to redesign and implement a transformational B2B payment portal as well as working with the Lawn Tennis Association of the UK as their official Digital Technology Services Partner.

Awards and accolades

Wipro was been ranked among the top service providers in the ‘2015 Nordic IT Outsourcing Study’, an annual study on IT outsourcing and IT service provider performance in the Nordic region, conducted by Whitelane Research and PA Consulting Group. Wipro received an overall customer satisfaction score of 80% from its customers in Sweden, which was significantly higher than the average score (72%) for other service providers.

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Wipro has been rated as a ‘High Performer’ by leading global analyst firm HfS Research, in the Population Health and Care Management (PHM) Business Services for U.S. Healthcare Providers and Payers, April 2015 Blueprint report.

Everest Group 2015 Workplace PEAK Matrix positions Wipro in the Leaders’ quadrant based on overall market success and delivery capabilities. Everest Group also positioned Wipro in the Leaders’ category based on overall market success and delivery capabilities in its 2015 PEAK Matrix for Banking AO (Application Outsourcing). Additionally, Wipro has been placed in the Leaders’ quadrant by Everest Group in its 2015 PEAK Matrix for Mortgage BPO.

IT Products

 

•

Our IT Products Segment delivered Revenue of 8.2 billion ($128 million1) for the quarter ended June 30, 2015, an increase of 7% YoY.

 

•

IT Products Segment Results for the quarter ended June 30, 2015 was 139 million ($2 million1).

Please refer the table on page 6 for reconciliation between IFRS IT Services Revenue and IT Services Revenue on a non-GAAP constant currency basis.

About Non-GAAP financial measures

This press release contains non-GAAP financial measures within the meaning of Regulation G and Item 10(e) of Regulation S-K. Such non-GAAP financial measures are measures of our historical or future performance, financial position or cash flows that are adjusted to exclude or include amounts that are excluded or included, as the case may be, from the most directly comparable financial measure calculated and presented in accordance with IFRS.

The table on page 6 provides IT Services Revenue on a constant currency basis, which is a non-GAAP financial measure that is calculated by translating IT Services Revenue from the current reporting period into U.S. dollars based on the currency conversion rate in effect for the prior reporting period. We refer to growth rates in constant currency so that business results may be viewed without the impact of fluctuations in foreign currency exchange rates, thereby facilitating period-to-period comparisons of our business performance.

This non-GAAP financial measure is not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, the most directly comparable financial measure calculated in accordance with IFRS, and may be different from non-GAAP measures used by other companies. In addition to this non-GAAP measure, the financial statements prepared in accordance with IFRS and the reconciliation of these non-GAAP financial measures with the most directly comparable IFRS financial measure should be carefully evaluated.

Results for the quarter ended June 30, 2015, prepared under IFRS, along with individual business segment reports, are available in the Investors section of our website www.wipro.com.

Quarterly Conference Call

We will hold an earnings conference call today at 07:15 p.m. Indian Standard Time (09:45 a.m. US Eastern Time) to discuss our performance for the quarter. An audio recording of the management discussions and the question and answer session will be available online and will be accessible in the Investor Relations section of our website at www.wipro.com.

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About Wipro Limited (NYSE: WIT)

Wipro Limited (NYSE:WIT) is a leading Information Technology, Consulting and Business Process Services company that delivers solutions to enable its clients do business better. Wipro delivers winning business outcomes through its deep industry experience and a 360 degree view of “Business through Technology”—helping clients create successful and adaptive businesses. A company recognized globally for its comprehensive portfolio of services, a practitioner’s approach to delivering innovation, and an organization wide commitment to sustainability, Wipro has a workforce of over 150,000, serving clients in 175+ cities across 6 continents

For more information, please visit www.wipro.com

 

Contact for Investor Relations				Contact for Media & Press
Aravind V S		Abhishek Kumar Jain		Vipin Nair
Phone: +91-80-2505 6186		Phone: +1 978 826 4700		Phone: +91-80-3991-6154
aravind.viswanathan@wipro.com		abhishekkumar.jain@wipro.com		vipin.nair1@wipro.com

Forward-looking statements

The forward-looking statements contained herein represent Wipro’s beliefs regarding future events, many of which are by their nature, inherently uncertain and outside Wipro’s control. Such statements include, but are not limited to, statements regarding Wipro’s growth prospects, its future financial operating results, and its plans, expectations and intentions. Wipro cautions readers that the forward-looking statements contained herein are subject to risks and uncertainties that could cause actual results to differ materially from the results anticipated by such statements. Such risks and uncertainties include, but are not limited to, risks and uncertainties regarding fluctuations in our earnings, revenue and profits, our ability to generate and manage growth, intense competition in IT services, our ability to maintain our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which we make strategic investments, withdrawal of fiscal governmental incentives, political instability, war, legal restrictions on raising capital or acquiring companies outside India, unauthorized use of our intellectual property, and general economic conditions affecting our business and industry. Additional risks that could affect our future operating results are more fully described in our filings with the United States Securities and Exchange Commission, including, but not limited to, Annual Reports on Form 20-F. These filings are available at www.sec.gov. We may, from time to time, make additional written and oral forward-looking statements, including statements contained in the company’s filings with the Securities and Exchange Commission and our reports to shareholders. We do not undertake to update any forward-looking statement that may be made from time to time by us or on our behalf.

# # #

(Tables to follow)

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Wipro limited and subsidiaries

CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION

(Rupees in millions, except share and per share data, unless otherwise stated)

 

		As of March 31,				As of June 30,
		2015				2015				2015
										Convenience translation into US dollar in millions (unaudited) - Refer footnote 1 on Page 1
ASSETS
Goodwill			68,078				69,240				1,089
Intangible assets			7,931				7,983				126
Property, plant and equipment			54,206				55,738				877
Derivative assets			736				271				4
Available for sale investments			3,867				4,013				63
Non-current tax assets			11,409				11,551				182
Deferred tax assets			2,945				3,636				57
Other non-current assets			14,369				14,179				223
Total non-current assets			163,541				166,611				2,621
Inventories			4,849				4,736				74
Trade receivables			91,531				91,740				1,443
Other current assets			73,359				69,487				1,093
Unbilled revenues			42,338				46,259				727
Available for sale investments			53,908				110,585				1,739
Current tax assets			6,490				6,949				109
Derivative assets			5,077				3,250				51
Cash and cash equivalents			158,940				132,937				2,091
Total current assets			436,492				465,943				7,327
TOTAL ASSETS			600,033				632,554				9,948
EQUITY
Share capital			4,937				4,938				78
Share premium			14,031				14,120				222
Retained earnings			372,248				394,177				6,199
Share based payment reserve			1,312				1,688				27
Other components of equity			15,454				14,485				228
Equity attributable to the equity holders of the Company			407,982				429,408				6,754
Non-controlling interest			1,646				1,827				29
Total equity			409,628				431,235				6,783
LIABILITIES
Long—term loans and borrowings			12,707				12,702				200
Deferred tax liabilities			3,240				3,186				50
Derivative liabilities			71				41				1
Non-current tax liabilities			6,695				6,269				99
Other non-current liabilities			3,658				5,441				86
Provisions			5				12				—
Total non-current liabilities			26,376				27,651				436
Loans and borrowings and bank overdrafts			66,206				69,082				1,085
Trade payables and accrued expenses			58,745				63,962				1,006
Unearned revenues			16,549				16,829				265
Current tax liabilities			8,036				8,932				140
Derivative liabilities			753				1,261				20
Other current liabilities			12,223				12,238				192
Provisions			1,517				1,364				21
Total current liabilities			164,029				173,668				2,729
TOTAL LIABILITIES			190,405				201,319				3,165
TOTAL EQUITY AND LIABILITIES			600,033				632,554				9,948

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Wipro limited and subsidiaries

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF INCOME

(Rupees in millions, except share and per share data, unless otherwise stated)

 

		Three Months ended June 30,
		2014				2015				2015
										Convenience translation into US dollar in millions (unaudited) - Refer footnote 1 on Page 1
Gross revenues			111,358				122,376				1,923
Cost of revenues			(74,941	)			(84,787	)			(1,333	)
Gross profit			36,417				37,589				590
Selling and marketing expenses			(7,557	)			(8,044	)			(126	)
General and administrative expenses			(6,187	)			(6,853	)			(108	)
Foreign exchange gains/(losses), net			1,098				1,330				21
Results from operating activities			23,771				24,022				377
Finance expenses			(888	)			(1,286	)			(20	)
Finance and other income			4,239				5,242				82
Profit before tax			27,122				27,978				439
Income tax expense			(5,942	)			(5,945	)			(93	)
Profit for the period			21,180				22,033				346
Attributable to:
Equity holders of the company			21,032				21,877				344
Non-controlling interest			148				156				2
Profit for the period			21,180				22,033				346
Earnings per equity share:
Attributable to equity share holders of the company
Basic			8.57				8.91				0.14
Diluted			8.54				8.89				0.14
Weighted average number of equity shares used in computing earnings per equity share
Basic			2,455,543,231				2,455,804,709				2,455,804,709
Diluted			2,462,939,809				2,460,584,039				2,460,584,039
Additional Information
Segment Revenue
IT Services Business Units
BFSI			28,065				31,020				489
HLS			11,290				12,988				204
RCTG			14,727				17,380				273
ENU			16,822				17,577				276
MFG			19,110				21,524				338
GMT			15,069				15,284				240
IT SERVICES TOTAL			105,083				115,773				1,820
IT PRODUCTS			7,660				8,174				128
RECONCILING ITEMS			(287	)			(241	)			(4	)
TOTAL			112,456				123,706				1,944
Segment Result
IT Services Business Units
BFSI			6,624				7,013				111
HLS			2,131				2,759				43
RCTG			3,188				3,140				49
ENU			4,553				3,812				60
MFG			4,368				4,327				69
GMT			3,762				2,698				42
OTHERS							—				—
UNALLOCATED			(623	)			530				8
TOTAL IT SERVICES			24,003				24,279				382
IT PRODUCTS			165				139				2
RECONCILING ITEMS			(397	)			(396	)			(6	)
TOTAL			23,771				24,022				378
FINANCE EXPENSE			(888	)			(1,286	)			(20	)
FINANCE AND OTHER INCOME			4,239				5,242				82
PROFIT BEFORE TAX			27,122				27,978				440
INCOME TAX EXPENSE			(5,942	)			(5,945	)			(94	)
PROFIT FOR THE PERIOD			21,180				22,033				346

Segment result represents operating profits of the segments and dividend income and gains or losses (net) relating to strategic investments, which are presented within “Finance and other income” in the statement of Income.

The Company is organized by the following operating segments; IT Services and IT Products.

The IT Services segment primarily consists of IT Service offerings to our customers organized by industry verticals as follows: Banking, Financial Services and Insurance (BFSI), Healthcare and Life Sciences (HLS), Retail, Consumer, Transport and Government (RCTG), Energy, Natural Resources and Utilities (ENU), Manufacturing (MFG), Global Media and Telecom (GMT). Starting with quarter ended September 30, 2014, it also includes Others which comprises dividend income and gains or losses (net) relating to strategic investments, which are presented within “Finance and other income” in the statement of Income. Key service offering to customers includes software application development and maintenance, research and development services for hardware and software design, business application services, analytics, consulting, infrastructure outsourcing services and business process services.

In the IT Products segment, the Company is a value added reseller of desktops, servers, notebooks, storage products, networking solutions and packaged software for leading international brands. In certain total outsourcing contracts of the IT Services segment, the Company delivers hardware products, software licenses and other related deliverables.

Reconciliation of Non-GAAP Constant Currency IT Services Revenue to IT Services Revenue as per IFRS ($MN)

 

Three Months ended June 30, 2015
IT Services Revenue as per IFRS		$	1,794			IT Services Revenue as per IFRS		$	1,794
Effect of Foreign currency exchange movement		$	(16)			Effect of Foreign currency exchange movement		$	87
Non-GAAP Constant Currency IT Services						Non-GAAP Constant Currency IT Services
Revenue based on previous quarter exchange rates		$	1,778			Revenue based on previous year exchange rates		$	1,881

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Exhibit 99.4

WIPRO LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED INTERIM

FINANCIAL STATEMENTS UNDER IFRS

AS OF AND FOR THE THREE MONTHS ENDED JUNE 30, 2015

 

1

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WIPRO LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION

( in millions, except share and per share data, unless otherwise stated)

 

				As of March 31,				As of June 30,
		Notes		2015				2015				2015
												Convenience translation into US dollar in millions (unaudited) Refer Note 2(iv)
ASSETS
Goodwill		5			68,078				69,240				1,089
Intangible assets		5			7,931				7,933				126
Property, plant and equipment		4			54,206				55,738				877
Derivative assets		13			736				271				4
Available for sale investments		7			3,867				4,013				63
Non-current tax assets					11,409				11,551				182
Deferred tax assets					2,945				3,636				57
Other non-current assets		10			14,369				14,179				223
Total non-current assets					163,541				166,611				2,621
Inventories		8			4,849				4,736				74
Trade receivables					91,531				91,740				1,443
Other current assets		10			73,359				69,487				1,093
Unbilled revenues					42,338				46,259				727
Available for sale investments		7			53,908				110,585				1,739
Current tax assets					6,490				6,949				109
Derivative assets		13			5,077				3,250				51
Cash and cash equivalents		9			158,940				132,937				2,091
Total current assets					436,492				465,943				7,327
TOTAL ASSETS					600,033				632,554				9,948
EQUITY
Share capital					4,937				4,938				78
Share premium					14,031				14,120				222
Retained earnings					372,248				394,177				6,199
Share based payment reserve					1,312				1,688				27
Other components of equity					15,454				14,485				228
Equity attributable to the equity holders of the Company					407,982				429,408				6,754
Non-controlling interest					1,646				1,827				29
Total equity					409,628				431,235				6,783
LIABILITIES
Long - term loans and borrowings		11			12,707				12,702				200
Deferred tax liabilities					3,240				3,186				50
Derivative liabilities		13			71				41				1
Non-current tax liabilities					6,695				6,269				99
Other non-current liabilities		12			3,658				5,441				86
Provisions		12			5				12				—
Total non-current liabilities					26,376				27,651				436
Loans and borrowings and bank overdrafts		11			66,206				69,082				1,085
Trade payables and accrued expenses					58,745				63,962				1,006
Unearned revenues					16,549				16,829				265
Current tax liabilities					8,036				8,932				140
Derivative liabilities		13			753				1,261				20
Other current liabilities		12			12,223				12,238				192
Provisions		12			1,517				1,364				21
Total current liabilities					164,029				173,668				2,729
TOTAL LIABILITIES					190,405				201,319				3,165
TOTAL EQUITY AND LIABILITIES					600,033				632,554				9,948

The accompanying notes form an integral part of these condensed consolidated interim financial statements

 

As per our report of even date attached		For and on behalf of the Board of Directors
for B S R & Co. LLP		Azim H Premji		N Vaghul
Chartered Accountants		Chairman		Director
Firm’s Registration No: 101248W/W- 100022		& Managing Director
Vijay Mathur		Jatin Pravinchandra Dalal		T K Kurien		M Sanaulla Khan
Partner		Chief Financial Officer		Executive Director		Company Secretary
Membership No. 046476				& Chief Executive Officer
Mumbai		Bangalore
July 23, 2015		July 23, 2015

 

2

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WIPRO LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED INTERIM STATEMENT OF INCOME

( in millions, except share and per share data, unless otherwise stated)

 

				Three Months ended June 30,
		Notes		2014				2015				2015
												Convenience translation into US dollar in millions (unaudited) Refer Note 2(iv)
Gross revenues		17			111,358				122,376				1,923
Cost of revenues		18			(74,941	)			(84,787	)			(1,333	)
Gross profit					36,417				37,589				590
Selling and marketing expenses		18			(7,557	)			(8,044	)			(126	)
General and administrative expenses		18			(6,187	)			(6,853	)			(108	)
Foreign exchange gains/(losses), net					1,098				1,330				21
Results from operating activities					23,771				24,022				377
Finance expenses		19			(888	)			(1,286	)			(20	)
Finance and other income		20			4,239				5,242				82
Profit before tax					27,122				27,978				439
Income tax expense		16			(5,942	)			(5,945	)			(93	)
Profit for the period					21,180				22,033				346
Attributable to:
Equity holders of the Company					21,032				21,877				344
Non-controlling interest					148				156				2
Profit for the period					21,180				22,033				346
Earnings per equity share:		21
Attributable to equity share holders of the Company
Basic					8.57				8.91				0.14
Diluted					8.54				8.89				0.14
Weighted average number of equity shares used in computing earnings per equity share
Basic					2,455,543,231				2,455,804,709				2,455,804,709
Diluted					2,462,939,809				2,460,584,039				2,460,584,039

The accompanying notes form an integral part of these condensed consolidated interim financial statements

 

As per our report of even date attached		For and on behalf of the Board of Directors
for B S R & Co. LLP		Azim H Premji		N Vaghul
Chartered Accountants		Chairman		Director
Firm’s Registration No: 101248W/W- 100022		& Managing Director
Vijay Mathur		Jatin Pravinchandra Dalal		T K Kurien		M Sanaulla Khan
Partner		Chief Financial Officer		Executive Director		Company Secretary
Membership No. 046476				& Chief Executive Officer
Mumbai		Bangalore
July 23, 2015		July 23, 2015

 

3

---

WIPRO LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME

( in millions, except share and per share data, unless otherwise stated)

 

				Three Months ended June 30,
		Notes		2014				2015				2015
												Convenience translation into US dollar in millions (unaudited) Refer Note 2(iv)
Profit for the period					21,180				22,033				346
Items that will not be reclassified to profit or loss
Defined benefit plan actuarial gains/(losses)					(50	)			(660	)			(10	)
					(50	)			(660	)			(10	)
Items that may be reclassified subsequently to profit or Loss
Foreign currency translation differences		15			832				1,603				25
Net change in fair value of cash flow hedges		13,16			(249	)			(1,999	)			(30	)
Net change in fair value of available for sale investments		7,16			259				112				2
					842				(284	)			(3	)
Total other comprehensive income, net of taxes					792				(944	)			(13	)
Total comprehensive income for the period					21,972				21,089				333
Attributable to:
Equity holders of the Company					21,825				20,908				330
Non-controlling interest					147				181				3
					21,972				21,089				333

The accompanying notes form an integral part of these condensed consolidated interim financial statements

 

As per our report of even date attached		For and on behalf of the Board of Directors
for B S R & Co. LLP		Azim H Premji		N Vaghul
Chartered Accountants		Chairman		Director
Firm’s Registration No: 101248W/W- 100022		& Managing Director
Vijay Mathur		Jatin Pravinchandra Dalal		T K Kurien		M Sanaulla Khan
Partner		Chief Financial Officer		Executive Director		Company Secretary
Membership No. 046476				& Chief Executive Officer
Mumbai		Bangalore
July 23, 2015		July 23, 2015

 

4

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WIPRO LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY

( in millions, except share and per share data, unless otherwise stated)

 

																						Other components of equity																Equity
Particulars		No. of Shares*				Share capital				Share premium				Retained earnings				Share based payment reserve				Foreign currency translation reserve				Cash flow hedging reserve				Other reserves				Shares held by controlled trust				attributable to the equity holders of the Company				Non- controlling interest				Total equity
As at April 1, 2014			2,466,317,273				4,932				12,664				314,952				1,021				10,060				499				(87	)			(542	)			343,499				1,387				344,886
Total comprehensive income for the period
Profit for the period			—				—				—				21,032				—				—				—				—				—				21,032				148				21,180
Other comprehensive income			—				—				—				—				—				832				(249	)			209				—				792				(1	)			791
Total comprehensive income far the period			—				—				—				21,032				—				832				(249	)			209				—				21,824				147				21,971
Transaction with owners of the company, recognized directly in equity
Contributions by and distributions to owners of the Company
Issue of equity shares on exercise of options			918,275				2				229								(229	)			—				—				—				—				2				—				2
Dividends			—				—				—				—				—				—				—				—				—				—				(314	)			(314	)
Compensation cost related to employee share based payment transactions			—				—				—				(31	)			353				—				—				—				—				322				—				322
			918,275				2				229				(31	)			124				—				—				—				—				324				(314	)			10
As at June 30, 2014			2,467,235,548				4,934				12,893				335,953				1,145				10,892				250				122				(542	)			365,647				1,220				366,867
Convenience translation into US $ in million (Unaudited) Refer note 2(iv)							82				215				5,594				19				181				4				2				(9	)			6,088				20				6,108

 

5

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WIPRO LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CHANGES IN EQUITY

( in millions, except share and per share data, unless otherwise stated)

 

																						Other components of equity
Particulars		No. of Shares*				Share capital				Share premium				Retained earnings				Share based payment reserve				Foreign currency translation reserve				Cash flow hedging reserve				Other reserves				Shares held by controlled trust				Equity attributable to the equity holders of the Company				Non- controlling interest				Total equity
As at April 1,2015			2,469,043,038				4,937				14,031				372,248				1,312				11,249				3,550				655				—				407,982				1,646				409,628
Total comprehensive income for the period
Profit for the period			—				—				—				21,877				—				—				—				—				—				21,877				156				22,033
Other comprehensive income			—				—				—				—				—				1,578				(1,999	)			(548	)			—				(969	)			25				(944	)
Total comprehensive income for the period			—				—				—				21,877				—				1,578				(1,999	)			(548	)			—				20,908				181				21,089
Transaction with owners of the company, recognized directly in equity
Contributions by and distributions to owners of the Company
Issue of equity shares on exercise of options			257,763				1				89				—				(89	)			—				—				—				—				1				—				1
Compensation cost related to employee share based payment transactions			—				—				—				52				465				—				—				—				—				517				—				517
			257,763				1				89				52				376				—				—				—				—				518				—				518
As at June 30, 2015			2,469,300,801				4,938				14,120				394,177				1,688				12,827				1,551				107				—				429,408				1,827				431,235
Convenience translation into US $ in million (Unaudited) Refer note 2(iv)							78				222				6,199				27				202				24				2				—				6,754				29				6,783

 

*	Includes 16,640,212 and 14,829,824 treasury shares as of June 30, 2014 and 2015, respectively.

The accompanying notes form an integral part of these condensed consolidated interim financial statements

 

As per our report of even date attached		For and on behalf of the Board of Directors
for B S R & Co. LLP		Azim H Premji		N Vaghul
Chartered Accountants		Chairman		Director
Firm’s Registration No: 101248W/W- 100022		& Managing Director
Vijay Mathur		Jatin Pravinchandra Dalal		T K Kurien		M Sanaulla Khan
Partner		Chief Financial Officer		Executive Director		Company Secretary
Membership No. 046476				& Chief Executive Officer
Mumbai		Bangalore
July 23, 2015		July 23, 2015

 

 

6

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WIPRO LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS

( in millions, except share and per share data, unless otherwise stated)

 

		Quarter ended June 30,
		2014				2015				2015
										Translation into US$ in millions (Unaudited) Refer note 2(iv)
Cash flows from operating activities:
Profit for the period			21,180				22,033				346
Adjustments:
Loss/ (gain) on sale of property, plant and equipment and intangible assets, net			(2	)			(1	)			(0	)
Depreciation and amortization			2,834				3,367				53
Exchange loss, net			2,099				703				11
Gain on sale of investments, net			(898	)			(413	)			(6	)
Share based compensation expense			322				482				8
Income tax expense			5,942				5,945				93
Dividend and interest (income)/expenses, net			(3,140	)			(4,513	)			(71	)
Changes in operating assets and liabilities; net of effects from acquisitions
Trade receivables			(789	)			(209	)			(3	)
Unbilled revenue			(2,346	)			(3,921	)			(62	)
Inventories			(85	)			113				2
Other assets			(2,043	)			(1,115	)			(18	)
Trade payables, accrued expenses and other liabilities and provision			3,824				5,092				80
Unearned revenue			181				280				5
Cash generated from operating activities before taxes			27,079				27,843				437
Income taxes paid, net			(5,415	)			(5,848	)			(92	)
Net cash generated from operating activities			21,664				21,995				345
Cash flows from investing activities:
Purchase of property, plant and equipment			(3,271	)			(3,401	)			(53	)
Proceeds from sale of property, plant and equipment			50				95				1
Purchase of available for sale investments			(158,301	)			(225,500	)			(3,546	)
Proceeds from sale of available for sale investments			122,796				169,019				2,659
Investment in inter-corporate deposits			(13,000	)			(6,900	)			(109	)
Refund of inter-corporate deposits			—				12,000				189
Payment for deferred consideration in respect of business acquisition			(243	)			—				—
Interest received			3,214				3,648				57
Dividend received			109				26				0
Net cash used in investing activities			(48,646	)			(51,013	)			(801	)
Cash flows from financing activities:
Proceeds from issuance of equity shares/shares pending allotment			2				1				0
Repayment of loans and borrowings			(32,960	)			(28,973	)			(456	)
Proceeds from loans and borrowings			28,124				30,912				486
Interest paid on loans and borrowings			(254	)			(409	)			(6	)
Payment of cash dividend (including dividend tax thereon)			(314	)			—				—
Net cash generated from/(used in) financing activities			(5,402	)			1,525				24
Net increase in cash and cash equivalents during the period			(32,384	)			(27,493	)			(432	)
Effect of exchange rate changes on cash and cash equivalents			299				731				11
Cash and cash equivalents at the beginning of the period			114,201				158,713				2,496
Cash and cash equivalents at the end of the period (Note 9)			82,116				131,951				2,076

The accompanying notes form an integral part of these condensed consolidated interim financial statements

 

As per our report of even date attached		For and on behalf of the Board of Directors
for B S R & Co. LLP		Azim H Premji		N Vaghul
Chartered Accountants		Chairman		Director
Firm’s Registration No: 101248W/W- 100022		& Managing Director
Vijay Mathur		Jatin Pravinchandra Dalal		T K Kurien		M Sanaulla Khan
Partner		Chief Financial Officer		Executive Director		Company Secretary
Membership No. 046476				& Chief Executive Officer
Mumbai		Bangalore
July 23, 2015		July 23, 2015

 

7

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WIPRO LIMITED AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

( in millions, except share and per share data, unless otherwise stated)

 

1.	The Company overview

Wipro Limited (“Wipro” or the “Parent Company”), together with its subsidiaries (collectively, “the Company” or the “Group”) is a leading India based provider of IT Services, including Business Process Services (“BPS”), globally.

Wipro is a public limited company incorporated and domiciled in India. The address of its registered office is Wipro Limited, Doddakannelli, Sarjapur Road, Bangalore – 560 035, Karnataka, India. Wipro has its primary listing with Bombay Stock Exchange and National Stock Exchange in India. The Company’s American Depository Shares representing equity shares are also listed on the New York Stock Exchange. These condensed consolidated interim financial statements were authorized for issue by the Company’s Board of Directors on July 23, 2015.

 

2.	Basis of preparation of financial statements

 

(i)

Statement of compliance

These condensed consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standards and its interpretations (“IFRS”), as issued by the International Accounting Standards Board (“IASB”). Selected explanatory notes are included to explain events and transactions that are significant to understand the changes in financial position and performance of the Company since the last annual consolidated financial statements as at and for the year ended March 31, 2015. These condensed consolidated interim financial statements do not include all the information required for full annual financial statements prepared in accordance with IFRS.

 

(ii)

Basis of preparation

These condensed consolidated interim financial statements are prepared in accordance with International Accounting Standard (IAS) 34, “Interim Financial Reporting”.

The condensed consolidated interim financial statements correspond to the classification provisions contained in IAS 1(revised), “Presentation of Financial Statements”. For clarity, various items are aggregated in the statements of income and statements of financial position. These items are disaggregated separately in the Notes, where applicable. The accounting policies have been consistently applied to all periods presented in these condensed consolidated interim financial statements.

All amounts included in the condensed consolidated interim financial statements are reported in millions of Indian rupees (  in millions) except share and per share data, unless otherwise stated. Due to rounding off, the numbers presented throughout the document may not add up precisely to the totals and percentages may not precisely reflect the absolute figures.

 

(iii)

Basis of measurement

The condensed consolidated interim financial statements have been prepared on a historical cost convention and on an accrual basis, except for the following material items that have been measured at fair value as required by relevant IFRS:

 

a.

Derivative financial instruments;

 

b.

Available-for-sale financial assets; and

 

c.

The defined benefit asset/ (liability) is recognised at the present value of defined benefit obligation less fair value of plan assets.

 

8

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(iv)

Convenience translation (unaudited)

The accompanying condensed consolidated interim financial statements have been prepared and reported in Indian rupees, the national currency of India. Solely for the convenience of the readers, the condensed consolidated interim financial statements as of and for the quarter ended June 30, 2015, have been translated into United States dollars at the certified foreign exchange rate of $ 1 = 63.59, as published by Federal Reserve Board of Governors on June 30, 2015. No representation is made that the Indian rupee amounts have been, could have been or could be converted into United States dollars at such a rate or any other rate.

 

(v)

Use of estimates and judgment

The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from those estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. In particular, information about significant areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the condensed consolidated interim financial statements are included in the following notes:

 

a)

Revenue recognition: The Company uses the percentage of completion method using the input (cost expended) method to measure progress towards completion in respect of fixed price contracts. Percentage of completion method accounting relies on estimates of total expected contract revenue and costs. This method is followed when reasonably dependable estimates of the revenues and costs applicable to various elements of the contract can be made. Key factors that are reviewed in estimating the future costs to complete include estimates of future labor costs and productivity efficiencies. Because the financial reporting of these contracts depends on estimates that are assessed continually during the term of these contracts, recognized revenue and profit are subject to revisions as the contract progresses to completion. When estimates indicate that a loss will be incurred, the loss is provided for in the period in which the loss becomes probable.

 

b)

Goodwill: Goodwill is tested for impairment at least annually and when events occur or changes in circumstances indicate that the recoverable amount of the cash generating unit is less than its carrying value. The recoverable amount of cash generating units is higher of value-in-use and fair value less cost to sell. The calculation involves use of significant estimates and assumptions which includes turnover and earnings multiples, growth rates and net margins used to calculate projected future cash flows, risk-adjusted discount rate, future economic and market conditions.

 

c)

Income taxes: The major tax jurisdictions for the Company are India and the United States of America. Significant judgments are involved in determining the provision for income taxes including judgment on whether tax positions are probable of being sustained in tax assessments. A tax assessment can involve complex issues, which can only be resolved over extended time periods.

 

d)

Deferred taxes: Deferred tax is recorded on temporary differences between the tax bases of assets and liabilities and their carrying amounts, at the rates that have been enacted or substantively enacted at the reporting date. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable profits during the periods in which those temporary differences and tax loss carry-forwards become deductible. The Company considers the expected reversal of deferred tax liabilities and projected future taxable income in making this assessment. The amount of the deferred income tax assets considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carry-forward period are reduced.

 

e)

Business combination: In accounting for business combinations, judgment is required in identifying whether an identifiable intangible asset is to be recorded separately from goodwill. Additionally, estimating the acquisition date fair value of the identifiable assets acquired, and liabilities and contingent consideration assumed involves management judgment. These measurements are based on information available at the acquisition date and are based on expectations and assumptions that have been deemed reasonable by management. Changes in these judgments, estimates, and assumptions can materially affect the results of operations.

 

9

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f)

Other estimates: The preparation of financial statements involves estimates and assumptions that affect the reported amount of assets, liabilities, disclosure of contingent liabilities at the date of financial statements and the reported amount of revenues and expenses for the reporting period. Specifically, the Company estimates the uncollectability of accounts receivable by analyzing historical payment patterns, customer concentrations, customer credit-worthiness and current economic trends. If the financial condition of a customer deteriorates, additional allowances may be required. Similarly, the Company provides for inventory obsolescence, excess inventory and inventories with carrying values in excess of net realizable value based on assessment of the future demand, market conditions and specific inventory management initiatives. If market conditions and actual demands are less favorable than the Company’s estimates, additional inventory provisions may be required. In all cases inventory is carried at the lower of historical cost and net realizable value. The stock compensation expense is determined based on the Company’s estimate of equity instruments that will eventually vest.

Non-marketable equity investments are initially recorded at cost and subsequently measured at fair value. Fair value of investments is determined using the market and income approaches. The market approach includes the use of financial metrics and ratios of comparable companies, such as revenue, earnings, comparable performance multiples, recent financial rounds and the level of marketability of the investments. The selection of comparable companies requires management judgment and is based on a number of factors, including comparable company sizes, growth rates, and development stages. The income approach includes the use of discounted cash flow model, which requires significant estimates regarding the investees’ revenue, costs, and discount rates based on the risk profile of comparable companies. Estimates of revenue and costs are developed using available historical and forecast data.

 

3.	Significant accounting policies

Please refer to the Company’s Annual Report for the year ended March 31, 2015 for a discussion of the Company’s other critical accounting policies.

New Accounting standards adopted by the Company:

The accounting policies adopted in the preparation of the condensed consolidated interim financial statements are consistent with those followed in the preparation of the Company’s annual consolidated financial statements for the year ended March 31, 2015, except for the adoption of amendments and interpretations effective as of April 1, 2015. Although these amendments and amendments apply for the first time in the current financial year, they do not have a material impact on the condensed consolidated interim financial statements.

New accounting standards not yet adopted:

A number of new standards, amendments to standards and interpretations are not yet effective for annual periods beginning after April 1, 2015, and have not been applied in preparing these condensed consolidated interim financial statements. New standards, amendments to standards and interpretations that could have a potential impact on the consolidated financial statements of the Company are:

IFRS 9 – Financial instruments

In July 2014, the IASB completed its project to replace IAS 39, Financial Instruments: Recognition and Measurement by publishing the final version of IFRS 9: Financial Instruments. IFRS 9 introduces a single approach for the classification and measurement of financial assets according to their cash flow characteristics and the business model they are managed in, and provides a new impairment model based on expected credit losses. IFRS 9 also includes new guidance regarding the application of hedge accounting to better reflect an entity’s risk management activities especially with regard to managing non-financial risks. The new standard is effective for annual reporting periods beginning on or after January 1, 2018, while early application is permitted. The application of IFRS 9 may have a material impact on the classification, measurement and presentation of the Company’s financial assets and liabilities. The Company is currently assessing the impact of adopting IFRS 9 on the Company’s consolidated financial statements.

 

10

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IFRS 15 – Revenue from Contracts with Customers

IFRS 15 supersedes all existing revenue requirements in IFRS (IAS 11 Construction Contracts, IAS 18 Revenue and related interpretations). According to the new standard, revenue is recognized to depict the transfer of promised goods or services to a customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. IFRS 15 establishes a five step model that will apply to revenue earned from a contract with a customer (with limited exceptions), regardless of the type of revenue transaction or the industry. Extensive disclosures will be required, including disaggregation of total revenue; information about performance obligation; changes in contract asset and liability account balances between periods and key judgments and estimates. The standard permits the use of either the retrospective or cumulative effect transition method. The standard is effective for annual periods beginning on or after January 1, 2017; early application is permitted. In May 2015, the IASB, through an exposure draft, proposed changing the effective date to periods beginning on or after January 1, 2018 instead of January 1, 2017. The Company is currently assessing the impact of adopting IFRS 15 on the Company’s consolidated financial statements.

4. Property, plant and equipment

 

		Land				Buildings				Plant and machinery*				Furniture fixtures and equipment				Vehicles				Total
Gross carrying value:
As at April 1, 2014			3,687				24,062				72,310				12,347				966				113,372
Translation adjustment			1				13				138				26				2				180
Additions			—				89				2,824				199				2				3,114
Disposal / adjustments			—				(36	)			(748	)			(129	)			(36	)			(949	)
As at June 30, 2014			3,688				24,128				74,524				12,443				934				115,717
Accumulated depreciation/impairment:
As at April 1, 2014			—				3,815				52,315				9,535				944				66,609
Translation adjustment			—				5				87				16				—				108
Depreciation			—				177				2,115				351				2				2,645
Disposal / adjustments			—				(36	)			(740	)			(54	)			(35	)			(865	)
As at June 30, 2014			—				3,961				53,777				9,848				911				68,497
Net carrying value as at June 30, 2014			3,688				20,167				20,747				2,595				23				47,220
Capital work-in-progress																							4,818
Net carrying value including Capital work-in-progress as at June 30, 2014																							52,038
Gross carrying value:
As at April 1, 2014			3,687				24,062				72,310				12,347				966				113,372
Translation adjustment			(2	)			50				122				(120	)			(22	)			28
Additions			—				446				11,978				873				36				13,333
Additions through business combination			—				89				871				120				1				1,081
Disposal / adjustments			—				(132	)			(5,687	)			(522	)			(151	)			(6,492	)
As at March 31, 2015			3,685				24,515				79,594				12,698				830				121,322
Accumulated depreciation/impairment:
As at April 1, 2014			—				3,815				52,315				9,535				944				66,609
Translation adjustment			—				36				243				(71	)			2				210
Depreciation			—				755				9,220				1,430				12				11,417
Disposal / adjustments			—				(93	)			(5,149	)			(258	)			(149	)			(5,649	)
As at March 31, 2015			—				4,513				56,629				10,636				809				72,587
Net carrying value as at March 31, 2015			3,685				20,002				22,965				2,062				21				48,735
Capital work-in-progress																							5,471
Net carrying value including Capital work-in-progress as at March 31, 2015																							54,206
Gross carrying value:
As at April 1, 2015			3,685				24,515				79,594				12,698				830				121,322
Translation adjustment			5				72				647				63				4				791
Additions			—				124				2,415				189				2				2,730
Disposal / adjustments			—				—				(450	)			(311	)			(16	)			(777	)
As at June 30, 2015			3,690				24,711				82,206				12,639				820				124,066

 

11

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		Land				Buildings				Plant and machinery*				Furniture fixtures and equipment				Vehicles				Total
Accumulated depreciation/impairment:
As at April 1, 2015			—				4,513				56,629				10,636				809				72,587
Translation adjustment			—				23				370				42				—				435
Depreciation			—				193				2,558				294				8				3,053
Disposal / adjustments			—				(39	)			(455	)			(217	)			3				(708	)
As at June 30, 2015			—				4,690				59,102				10,755				820				75,367
Net carrying value as at June 30, 2015			3,690				20,021				23,104				1,884				—				48,699
Capital work-in-progress																							7,039
Net carrying value including Capital work-in-progress as at June 30, 2015																							55,738

 

*	Including computer equipment and software

5. Goodwill and intangible assets

The movement in goodwill balance is given below:

 

		Year ended March 31, 2015				Three months ended June 30, 2015
Balance at the beginning of the period			63,422				68,078
Translation adjustment			1,098				1,162
Acquisition through business combination, net			3,558				—
Balance at the end of the period			68,078				69,240

 

		Intangible assets
		Customer related				Marketing related				Total
Gross carrying value:
As at April 1, 2014			3,404				1,100				4,504
Translation adjustment			6				—				6
As at June 30, 2014			3,410				1100				4,510
Accumulated amortization and impairment:
As at April 1, 2014			1,892				676				2,568
Translation adjustment			—				(1	)			(1	)
Amortization			116				26				142
As at June 30, 2014			2,008				701				2,709
Net carrying value as at June 30, 2014			1,402				399				1,801
Gross carrying value:
As at April 1, 2014			3,404				1,100				4,504
Translation adjustment			(1,015	)			(95	)			(1,110	)
Disposal/ adjustment			—				(100	)			(100	)
Acquisition through business combination			8,228				—				8,228
As at March 31, 2015			10,617				905				11,522

 

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		Intangible assets
		Customer related				Marketing related				Total
Accumulated amortization and impairment:
As at April 1, 2014			1,892				676				2,568
Translation adjustment			—				(104	)			(104	)
Disposal/ adjustment			—				(82	)			(82	)
Amortization and impairment			1,044				165				1,209
As at March 31, 2015			2,936				655				3,591
Net carrying value as at March 31, 2015			7,681				250				7,931
Gross carrying value:
As at April 1, 2015			10,617				905				11,522
Translation adjustment			345				33				378
As at June 30, 2015			10,962				938				11,900
Accumulated amortization and impairment:
As at April 1, 2015			2,936				655				3,591
Translation adjustment			—				31				31
Amortization			277				18				295
As at June 30, 2015			3,213				704				3,917
Net carrying value as at June 30, 2015			7,749				234				7,983

Amortization expense on intangible assets is included in selling and marketing expenses in the condensed consolidated interim statement of income.

6. Business combination

ATCO I-Tek Inc.

On August 15, 2014, the Company obtained control of ATCO I-Tek Inc., a Canadian entity, by acquiring 100% of its share capital and certain assets of IT services business of ATCO I-Tek Australia (hereafter the acquisitions are collectively referred to as ‘acquisition of ATCO I-Tek’) for an all-cash consideration of 11,420 (Canadian Dollars 204 million). ATCO I-Tek provides IT services to ATCO Group. The acquisition will strengthen Wipro’s IT services delivery model in North America and Australia.

As part of conclusion of certain closing conditions, 349 had been reduced from the purchase price. Consequently, the Company concluded the fair value adjustments of the assets acquired and liabilities assumed on acquisition.

 

13

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The following table presents the allocation of purchase price:

 

Description		Pre-acquisition carrying amount				Fair value adjustments				Purchase price allocated
Assets
Cash			71				—				71
Property, plant & equipment (including capital work-in-progress and software)			1,689				(278	)			1,411
Trade receivables			210				—				210
Other assets			296				—				296
Customer related intangibles			—				8,228				8,228
Liabilities
Trade payables and accrued liabilities			(798	)			—				(798	)
Deferred income taxes, net			(138	)			(2,017	)			(2,155	)
Total			1,330				5,933				7,263
Goodwill											3,808
Total purchase price											11,071

The goodwill of 3,808 comprises value of expected synergies arising from the acquisition. Goodwill is not expected to be deductible for income tax purposes.

 

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7. Available for sale investments

Available for sale investments consists of the following:

 

		As at March 31, 2015																As at June 30, 2015
		Cost*				Gross gain recognized directly in equity				Gross loss recognized directly in equity				Fair Value				Cost*				Gross gain recognized directly in equity				Gross loss recognized directly in equity				Fair Value
Investment in liquid and short-term mutual funds and others			56,437				1,340					(2)			57,775				113,254				1,344				—				114,598
Total			56,437				1,340					(2)			57,775				113,254				1,344				—				114,598
Current															53,908																110,585
Non-current															3,867																4,013

 

*	Available for sale investments includes investments amounting to  103 (March 31, 2015:  Nil) pledged as margin money deposits for entering into currency future contracts.

8. Inventories

Inventories consist of the following:

 

		As at
		March 31, 2015				June 30, 2015
Stores and spare parts			932				917
Raw materials and components			3				2
Work in progress			2				—
Finished goods and traded goods			3,912				3,817
			4,849				4,736

9. Cash and cash equivalents

Cash and cash equivalents as of March 31, 2015 and June 30, 2015 consists of cash and balances on deposit with banks. Cash and cash equivalents consists of the following:

 

		As at
		March 31, 2015				June 30, 2015
Cash and bank balances			47,198				18,271
Demand deposits with banks (1)			111,742				114,666
			158,940				132,937

 

(1)	These deposits can be withdrawn by the Company at any time without prior notice and without any penalty on the principal.

Cash and cash equivalents consists of the following for the purpose of the cash flow statement:

 

		As at
		June 30, 2014				June 30, 2015
Cash and cash equivalents			82,116				132,937
Bank overdrafts			—				(986	)
			82,116				131,951

 

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10. Other assets

 

		As at
		March 31, 2015				June 30, 2015
Current
Inter corporate and term deposits (1) (2)			38,500				33,400
Prepaid expenses			10,562				12,178
Due from officers and employees			3,488				3,491
Finance lease receivables			3,461				2,795
Advance to suppliers			2,430				2,294
Deferred contract costs			3,610				3,937
Interest receivable			5,290				6,304
Deposits			763				773
Balance with excise, customs and other authorities			1,786				1,409
Others (3) (4)			3,469				2,906
			73,359				69,487
Non-current
Prepaid expenses including rentals for leasehold land			6,630				7,033
Finance lease receivables			2,899				2,579
Deferred contract costs			4,445				4,206
Deposits			65				22
Others			330				339
			14,369				14,179
Total			87,728				83,666

 

(1)	Such deposits earn a fixed rate of interest and will be liquidated within 12 months

(2)	Term deposits include deposits amounting to 300 (March 31, 2015: 300) lien marked as margin money deposits for entering into currency future contracts.

(3)	Others include 30 (March 31, 2015: 77) due from Wipro Enterprises Private Limited (formerly Wipro Enterprises Limited) and its subsidiaries.

(4)	Others include 426 (March 31, 2015: 400) representing assets held for sale.

11. Loans and borrowings

A summary of loans and borrowings is as follows:

 

		As at
		March 31 , 2015				June 30, 2015
Short-term borrowings from banks			64,335				67,258
External commercial borrowings			9,375				9,548
Obligations under finance leases			4,878				4,794
Term loans			325				184
Total loans and borrowings			78,913				81,784

12. Other liabilities and provisions

 

		As at
Other liabilities:		March 31, 2015				June 30, 2015
Current:
Statutory and other liabilities			3,530				3,251
Employee benefit obligations			4,802				5,454
Advance from customers			2,200				2,193
Others (1)			1,691				1,340
			12,223				12,238

 

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		As at
Other liabilities:		March 31, 2015				June 30, 2015
Non-current:
Employee benefit obligations			3,062				4,759
Others			596				682
			3,658				5,441
Total			15,881				17,679

 

(1)	Others include 206 (March 31, 2015: 340) due to Wipro Enterprises Private Limited (formerly Wipro Enterprises Limited) and its subsidiaries.

 

		As at
		March 31, 2015				June 30, 2015
Provisions:
Current:
Provision for warranty			306				320
Others			1,211				1,044
			1,517				1,364
Non-current:
Provision for warranty			5				12
Total			1,522				1,376

Provision for warranty represents cost associated with providing sales support services which are accrued at the time of recognition of revenues and are expected to be utilized over a period of 1 to 2 years. Other provisions primarily include provisions for tax related contingencies and litigations. The timing of cash outflows in respect of such provision cannot be reasonably determined.

13. Financial instruments

Derivative assets and liabilities:

The Company is exposed to foreign currency fluctuations on foreign currency assets / liabilities, forecasted cash flows denominated in foreign currency and net investment in foreign operations. The Company follows established risk management policies, including the use of derivatives to hedge foreign currency assets / liabilities, foreign currency forecasted cash flows and net investment in foreign operations. The counter parties in these derivative instruments are primarily banks and the Company considers the risks of non-performance by the counterparties as non-material.

The following table presents the aggregate contracted principal amounts of the Company’s derivative contracts outstanding:

 

		As at
		March 31, 2015				June 30, 2015
Designated derivative instruments
Sell		$	836			$	804
		£	198			£	228
		€	220			€	258
		AUD	83			AUD	86
Interest rate swaps		$	150			$	150
Net investment hedges in foreign operations
Others		$	145			$	135

 

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		As at
		March 31, 2015				June 30, 2015
Non designated derivative instruments
Sell		$	1,304			$	910
		£	67			£	97
		€	60			€	65
		AUD	53			AUD	43
		¥	490			¥	490
		SGD	13			SGD	13
		ZAR	69			ZAR	129
		CAD	30			CAD	25
		CHF	10			CHF	10
Buy		$	790			$	920

The following table summarizes activity in the cash flow hedging reserve within equity related to all derivative instruments classified as cash flow hedges:

 

		As at June 30,
		2014				2015
Balance as at the beginning of the period			567				4,268
Deferred cancellation gain/(loss)			—				47
Changes in fair value of effective portion of derivatives			(252	)			(2,439	)
Gain/(loss) on cash flow hedging derivatives, net			(252)				(2,392)
Balance as at the end of the period			315				1,876
Deferred tax asset/(liability) thereon			(65)				(325)
Balance as at the end of the period, net of deferred tax			250				1,551

As at March 31, 2015, June 30, 2014 and 2015, there were no significant gains or losses on derivative transactions or portions thereof that have become ineffective as hedges, or associated with an underlying exposure that did not occur.

14. Fair value hierarchy

Financial assets and liabilities include cash and cash equivalents, trade receivables, unbilled revenues, finance lease receivables, employee and other advances and eligible current and non-current assets, long and short-term loans and borrowings, finance lease payables, bank overdrafts, trade payable, eligible current liabilities and non-current liabilities. The fair value of financial assets and liabilities approximate their carrying amount largely due to the short-term nature of such assets and liabilities.

Investments in liquid and short-term mutual funds, which are classified as available-for-sale are measured using quoted market prices at the reporting date multiplied by the quantity held.

The fair value of derivative financial instruments is determined based on observable market inputs including currency spot and forward rates, yield curves, currency volatility etc.

Fair value hierarchy

The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows:

Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

 

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Level 3 – Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

The following table presents fair value of hierarchy of assets and liabilities measured at fair value on a recurring basis:

 

		As at March 31, 2015																As at June 30, 2015
Particulars		Fair value measurements at reporting date using																Fair value measurements at reporting date using
		Total				Level 1				Level 2				Level 3				Total				Level 1				Level 2				Level 3
Assets
Derivative instruments
- Cash flow hedges			4,237				—				4,237				—				2,178				—				2,178				—
- Net investment hedges			140				—				140				—				144				—				144				—
- Others			1,436				—				912				524				1,199				—				675				524
Available for sale financial assets:
- Investment in liquid and short-term mutual funds			10,202				10,202				—				—				47,166				47,166				—				—
- Other investments			43,706				2,046				41,660				—				63,419				2,211				61,208				—
- Investment in equity instruments			3,867				—				—				3,867				4,013				—				—				4,013
Liabilities
Derivative instruments
- Cash flow hedges			80				—				80				—				354				—				354				—
- Net investment hedges			264				—				264				—				275				—				275				—
- Others			480				—				480				—				673				—				673				—

The following methods and assumptions were used to estimate the fair value of the level 2 financial instruments included in the above table.

Derivative instruments (assets and liabilities): The Company enters into derivative financial instruments with various counter-parties, primarily banks with investment grade credit ratings. Derivatives valued using valuation techniques with market observable inputs are mainly interest rate swaps, foreign exchange forward contracts and foreign exchange option contracts. The most frequently applied valuation techniques include forward pricing, swap models and Black Scholes models (for option valuation), using present value calculations. The models incorporate various inputs including the credit quality of counterparties, foreign exchange spot and forward rates, interest rate curves and forward rate curves of the underlying. As on June 30, 2015, the changes in counterparty credit risk had no material effect on the hedge effectiveness assessment for derivatives designated in hedge relationships and other financial instruments recognized at fair value.

Available for sale investments (Investment in commercial papers): Fair value of available-for-sale financial assets is derived based on the indicative quotes of price and yields prevailing in the market as on June 30, 2015.

Details of assets and liabilities considered under Level 3 classification:

 

		Available for sale investments – Equity instruments				Derivative Assets – Others
Opening Balance as on April 1, 2014			2,676				110
Additions			546				433
Disposals/ payouts			(916	)			—
Gain/(loss) recognized in statement of income			608				(19	)
Gain recognized in other comprehensive income			953				—
Closing balance as on March 31, 2015			3,867				524

 

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		Available for sale investments – Equity instruments				Derivative Assets – Others
Opening Balance as on April 1, 2015			3,867				524
Additions/(Deletions)			146				—
Closing balance as on June 30, 2015			4,013				524

 

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Description of significant unobservable inputs to valuation:

 

Item		Valuation technique		Significant unobservable inputs		Input		Sensitivity of the input to fair value
Available for sale investments in unquoted equity shares		Discounted cash flow model		Long term growth rate		2%		0.5% increase (decrease) in growth rate would result in increase (decrease) in fair value of AFS investments by  44, ( 40) respectively
				Discount rate		14%		0.5% increase (decrease) in discount rate would result in increase (decrease) in fair value of AFS investments by 85 ( 91) respectively
		Market multiple approach		Revenue multiple		4.1X		0.5% increase (decrease) in revenue multiple would result in increase (decrease) in fair value of AFS investments by  148 ( 152) respectively
Derivative assets		Option pricing model		Volatility of comparable companies		45%		2.5% increase (decrease) in volatility would result in increase (decrease) in fair value of the derivative asset by 32, ( 33) respectively
Time to liquidation event						4.5 years		1 year increase (decrease) in time to liquidation event would result in increase (decrease) in fair value of the derivative asset by  63, ( 85), respectively

15. Foreign currency translation reserve

The movement in foreign currency translation reserve attributable to equity holders of the Company is summarized below:

 

		As at
		June 30, 2014				June 30, 2015
Balance at the beginning of the period			10,060				11,249
Translation difference related to foreign operations, net			606				1,757
Change in effective portion of hedges of net investment in foreign operations			226				(179	)
Total change during the period			832				1,578
Balance at the end of the period			10,892				12,827

16. Income taxes

Income tax expense / (credit) has been allocated as follows:

 

		Three months ended
		June 30, 2014				June 30, 2015
Income tax expense as per the statement of income			5,942				5,945
Income tax included in other comprehensive income on:
Unrealized gain on available for sale investments			41				(106	)
Gain / (loss) on cash flow hedging derivatives			(3	)			(393	)
Defined benefit plan actuarial gains / (losses)			(15	)			(187	)
Total income taxes			5,965				5,259

 

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Income tax expense consists of the following:

 

		Three months ended
		June 30, 2014				June 30, 2015
Current taxes
Domestic			5,090				4,833
Foreign			934				1,170
			6,024				6,003
Deferred taxes
Domestic			(182)				(98)
Foreign			100				40
			(82)				(58)
Total income tax expense			5,942				5,945

Income tax expense is net of reversal of provisions recorded in earlier periods, which are no longer required, amounting to 578 and 355 for the three months ended June 30, 2014 and 2015 respectively.

17. Revenues

 

		Three months ended
		June 30, 2014				June 30, 2015
Rendering of services			103,846				113,866
Sale of products			7,512				8,510
Total revenues			111,358				122,376

18. Expenses by nature

 

		Three months ended
		June 30, 2014				June 30, 2015
Employee compensation			53,889				59,007
Raw materials, finished goods and stores and spares consumed			6,578				7,441
Sub-contracting/technical fees/third party application			11,679				14,541
Travel			5,038				5,657
Depreciation and amortization			2,834				3,367
Repairs			2,276				2,684
Advertisement			330				433
Communication			1,279				1,278
Rent			965				1,265
Power and fuel			786				745
Legal and professional fees			784				980
Rates, taxes and insurance			460				660
Provision for doubtful debt			292				219
Miscellaneous expenses			1,495				1,407
Total cost of revenues, selling and marketing and general and administrative expenses			88,685				99,684

19. Finance expense

 

		Three months ended
		June 30, 2014				June 30, 2015
Interest expense			202				316
Exchange fluctuation on foreign currency borrowings, net			686				970
Total			888				1,286

 

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20. Finance and other income

 

		Three months ended
		June 30, 2014				June 30, 2015
Interest income			3,232				4,803
Dividend income			109				26
Gain on sale of investments			898				413
Total			4,239				5,242

21. Earnings per equity share

A reconciliation of profit for the period and equity shares used in the computation of basic and diluted earnings per equity share is set out below:

Basic: Basic earnings per share is calculated by dividing the profit attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the period, excluding equity shares purchased by the Company and held as treasury shares.

 

		Three months ended
		June 30, 2014				June 30, 2015
Profit attributable to equity holders of the Company			21,032				21,877
Weighted average number of equity shares outstanding			2,455,543,231				2,455,804,709
Basic earnings per share			8.57				8.91

Diluted: Diluted earnings per share is calculated by adjusting the weighted average number of equity shares outstanding during the period for assumed conversion of all dilutive potential equity shares. Employee share options are dilutive potential equity shares for the Company.

The calculation is performed in respect of share options to determine the number of shares that could have been acquired at fair value (determined as the average market price of the Company’s shares during the period). The number of shares calculated as above is compared with the number of shares that would have been issued assuming the exercise of the share options.

 

		Three months ended
		June 30, 2014				June 30, 2015
Profit attributable to equity holders of the Company			21,032				21,877
Weighted average number of equity shares outstanding			2,455,543,231				2,455,804,709
Effect of dilutive equivalent share options			7,396,578				4,779,330
Weighted average number of equity shares for diluted earnings per share			2,462,939,809				2,460,584,039
Diluted earnings per share			8.54				8.89

22. Employee benefits

 

a)

Employee costs include:

 

		Three months ended
		June 30, 2014				June 30, 2015
Salaries and bonus			52,466				57,342
Employee benefit plans
Gratuity			162				186
Contribution to provident and other funds			939				997
Share based compensation			322				482
			53,889				59,007

 

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b)

The employee benefit cost is recognized in the following line items in the statement of income:

 

		Three months ended
		June 30, 2014				June 30, 2015
Cost of revenues			45,358				49,947
Selling and marketing expenses			5,432				5,748
General and administrative expenses			3,099				3,312
			53,889				59,007

The Company has granted 2,485,000 and 2,747,400 options under RSU option plan and 1,688,500 and 1,487,700 options under ADS option plan during the three months ended June 30, 2014 and 2015.

23. Commitments and contingencies

Capital commitments: As at March 31, 2015 and June 30, 2015, the Company had committed to spend approximately 1,262 and 1,681 respectively, under agreements to purchase property and equipment. These amounts are net of capital advances paid in respect of these purchases.

Guarantees: As at March 31, 2015 and June 30, 2015, performance and financial guarantees provided by banks on behalf of the Company to the Indian Government, customers and certain other agencies amount to approximately 21,235 and 22,685, respectively, as part of the bank line of credit.

Contingencies and lawsuits: The Company is subject to legal proceedings and claims (including tax assessment orders/ penalty notices) which have arisen in the ordinary course of its business. Some of the claims involve complex issues and it is not possible to make a reasonable estimate of the expected financial effect, if any, that will result from ultimate resolution of such proceedings. However, the resolution of these legal proceedings is not likely to have a material and adverse effect on the results of operations or the financial position of the Company. The significant of such matters are discussed below.

In March 2004, the Company received a tax demand for year ended March 31, 2001 arising primarily on account of denial of deduction under section 10A of the Income Tax Act, 1961 (Act) in respect of profit earned by the Company’s undertaking in Software Technology Park at Bangalore. The same issue was repeated in the successive assessments for the years ended March 31, 2002 to March 31, 2010 and the aggregate demand is 46,515 (including interest of 13,673). The appeals filed against the said demand before the Appellate authorities have been allowed in favor of the Company by the second appellate authority for the years up to March 31, 2007. Further appeals have been filed by the Income tax authorities before the Hon’ble High Court. The Hon’ble High Court has heard and disposed-off the appeals up to years ended March 31, 2004. Order of the Hon’ble High Court is not yet received.

On similar issues for years prior to years ended March 2001, the Hon’ble High Court in Karnataka has upheld the claim of the Company under section 10A of the Act. For the years ended March 31, 2008 and March 31, 2009, the appeals are pending before Income Tax Appellate Tribunal (Tribunal). For year ended March 31, 2010, the Dispute Resolution Panel (DRP) allowed the claim of the Company under section 10A of the Act. The Income tax authorities have filed an appeal before the Tribunal.

For year ended March 2011, the Company received the draft assessment order in March 2015, on similar grounds as that of earlier years, with a demand of 7,852 (including interest of 2,547) for the year ended March 31, 2011.

Considering the facts and nature of disallowance and the order of the appellate authority/ Hon’ble Karnataka High Court upholding the claims of the Company for earlier years, the Company believes that the final outcome of the above disputes should be in favor of the Company and there should not be any material adverse impact on the financial statements.

The contingent liability in respect of disputed demands for excise duty, custom duty, sales tax and other matters amounts to 2,560 and 2,642 as of March 31, 2015 and June 30, 2015.

 

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24. Segment information

The Company is organized by the following operating segments; IT Services and IT Products.

IT Services: The IT Services segment primarily consists of IT Service offerings to customers organized by industry verticals as follows: Banking, Financial Services and Insurance (BFSI), Healthcare and Life Sciences (HLS), Retail, Consumer, Transport and Government (RCTG), Energy, Natural Resources and Utilities (ENU), Manufacturing and High-Tech (MFG), Global Media and Telecom (GMT). It also includes Others which comprises dividend income and gains or losses (net) relating to strategic investments, which are presented within “Finance and other income” in the statement of Income. Key service offerings to customers includes software application development and maintenance, research and development services for hardware and software design, business application services, analytics, consulting, infrastructure outsourcing services and business process services.

IT Products: The Company is a value added reseller of desktops, servers, notebooks, storage products, networking solutions and packaged software for leading international brands. In certain total outsourcing contracts of the IT Services segment, the Company delivers hardware, software products and other related deliverables. Revenue relating to the above items is reported as revenue from the sale of IT Products.

The Chairman and Managing Director of the Company has been identified as the Chief Operating Decision Maker (CODM) as defined by IFRS 8, “Operating Segments.” The Chairman of the Company evaluates the segments based on their revenue growth and operating income.

Assets and liabilities used in the Company’s business are not identified to any of the operating segments, as these are used interchangeably between segments. Management believes that it is currently not practicable to provide segment disclosures relating to total assets and liabilities since a meaningful segregation of the available data is onerous.

Information on reportable segment for the three months ended June 30, 2014 is as follows:

 

		IT Services																																IT Products				Reconciling Items				Entity total
		BFSI				HLS				RCTG				ENU				MFG				GMT				Others				Total
Revenue			28,065				11,290				14,727				16,822				19,110				15,069				—				105,083				7,660				(287	)			112,456
Segment Result			6,624				2,131				3,188				4,553				4,368				3,762				—				24,626				165				(397	)			24,394
Unallocated																															(623	)			—				—				(623	)
Segment Result Total																															24,003				165				(397	)			23,771
Finance expense																																											(888	)
Finance and other income																																											4,239
Profit before tax																																											27,122
Income tax expense																																											(5,942	)
Profit for the period																																											21,180
Depreciation and amortization																																											2,834

Information on reportable segment for the three months ended June 30, 2015 is as follows:

 

		IT Services																																IT Products				Reconciling Items				Entity total
		BFSI				HLS				RCTG				ENU				MFG				GMT				Others				Total
Revenue			31,020				12,988				17,380				17,577				21,524				15,284				—				115,773				8,174				(241	)			123,706
Segment Result			7,013				2,759				3,140				3,812				4,327				2,698				—				23,749				139				(396	)			23,492
Unallocated																															530				—				—				530
Segment Result Total																															24,279				139				(396	)			24,022
Finance expense																																											(1,286	)
Finance and other income																																											5,242
Profit before tax																																											27,978
Income tax expense																																											(5,945	)
Profit for the period																																											22,033
Depreciation and amortization																																											3,367

 

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The Company has four geographic segments: India, Americas, Europe and Rest of the world. Revenues from the geographic segments based on domicile of the customer are as follows:

 

		Three months ended
		June 30, 2014				June 30, 2015
India			11,072				13,354
Americas			52,876				61,061
Europe			31,367				30,006
Rest of the world			17,141				19,285
			112,456				123,706

Management believes that it is currently not practicable to provide disclosure of geographical location wise assets, since the meaningful segregation of the available information is onerous.

No client individually accounted for more than 10% of the revenues during the three months ended June 30, 2014 and 2015.

Notes:

 

a)	“Reconciling items” includes elimination of inter-segment transactions, dividend income/ gains/ losses relating to strategic investments and other corporate activities.

 

b)	Segment result represents operating profits of the segments and dividend income and gains or losses (net) relating to strategic investments, which are presented within “Finance and other income” in the statement of Income.

 

c)	Revenues include excise duty of 1 and Nil for the period ended June 30, 2014 and 2015, respectively. For the purpose of segment reporting, the segment revenues are net of excise duty. Excise duty is reported in reconciling items.

 

d)	Revenue from sale of traded cloud based licenses is reported as part of IT Services revenues.

 

e)	For the purpose of segment reporting, the Company has included the impact of “foreign exchange gains / (losses), net” in revenues (which is reported as a part of operating profit in the statement of income).

 

f)

For evaluating performance of the individual operating segments, stock compensation expense is allocated on the basis of straight line amortization. The differential impact of accelerated amortization of stock compensation expense over stock compensation expense allocated to the individual operating segments is reported in reconciling items.

 

g)	For evaluating the performance of the individual operating segments, amortization of customer and marketing related intangibles acquired through business combinations are reported in reconciling items.

 

h)

The Company generally offers multi-year payment terms in certain total outsourcing contracts. These payment terms primarily relate to IT hardware, software and certain transformation services in outsourcing contracts. Corporate treasury provides internal financing to the business units offering multi-year payments terms. The finance income on deferred consideration earned under these contracts is included in the revenue of the respective segment and is eliminated under reconciling items.

25. List of subsidiaries as of June 30, 2015 are provided in the table below.

 

Subsidiaries		Subsidiaries		Subsidiaries		Country of Incorporation
Wipro LLC						USA
		Wipro Gallagher Solutions Inc		Opus Capital Markets Consultants LLC		USA
		Infocrossing Inc.				USA
		Wipro Promax Analytics Solutions LLC				USA
		Wipro Insurance Solutions LLC Macaw Merger Inc. Wipro IT Services Inc.				USA USA USA

 

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Subsidiaries		Subsidiaries		Subsidiaries		Country of Incorporation
Wipro Overseas IT Services Pvt Ltd						India
Wipro Japan KK						Japan
Wipro Shanghai Limited						China
Wipro Trademarks Holding Limited						India
Wipro Travel Services Limited						India
Wipro Holdings (Mauritius) Limited						Mauritius
		Wipro Holdings UK Limited				U.K.
				Wipro Information Technology Austria GmbH(A)		Austria
				Wipro Digital ApS 3D Networks (UK) Limited Wipro Europe Limited (A)		Denmark U.K. U.K.
				Wipro Promax Analytics Solutions (Europe) Limited		UK
Wipro Cyprus Private Limited						Cyprus
		Wipro Doha LLC#				Doha
		Wipro Technologies S.A DE C. V				Mexico
		Wipro BPO Philippines LTD. Inc				Philippines
		Wipro Holdings Hungary Korlátolt Felelősségű Társaság				Hungary
		Wipro Technologies Argentina SA				Argentina
		Wipro Information Technology Egypt SAE				Egypt
		Wipro Arabia Limited*				Saudi Arabia
		Wipro Poland Sp Z.o.o				Poland
		Wipro IT Services Poland Sp. z o. o				Poland
		Wipro Technologies Australia Pty Ltd (formerly Wipro Promax Analytics Solutions Pty Ltd)				Australia
		Wipro Corporate Technologies Ghana Limited				Ghana
		Wipro Technologies South Africa (Proprietary) Limited				South Africa
				Wipro Technologies Nigeria Limited		Nigeria
		Wipro Information Technology Netherlands BV.				Netherland
				Wipro Portugal S.A.(A)		Portugal
				Wipro Technologies Limited, Russia		Russia
				Wipro Technology Chile SPA		Chile
				Wipro Technologies Canada Limited(A)		Canada

 

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Subsidiaries		Subsidiaries		Subsidiaries		Country of Incorporation
				Wipro Information Technology Kazakhstan LLP		Kazakhstan
				Wipro Technologies W.T. Sociedad Anonima Wipro Outsourcing Services (Ireland) Limited Wipro IT Services Ukraine LLC Wipro Technologies Norway AS Wipro Technologies VZ, C.A.		Costa Rica Ireland Ukraine Norway Venezuela
				Wipro Technologies Peru S.A.C		Peru
		Wipro Technologies SRL				Romania
		PT WT Indonesia				Indonesia
		Wipro Australia Pty Limited				Australia
				Wipro Promax Holdings Pty Ltd(A)		Australia
		Wipro (Thailand) Co Limited				Thailand
		Wipro Bahrain Limited WLL				Bahrain
		Wipro Gulf LLC Wipro Technologies Spain S.L.				Sultanate of Oman Spain
Wipro Networks Pte Limited						Singapore
		Wipro Technologies SDN BHD				Malaysia
Wipro Chengdu Limited						China
Wipro Airport IT Services Limited*						India

 

*	All the above direct subsidiaries are 100% held by the Company except that the Company holds 66.67% of the equity securities of Wipro Arabia Limited and 74% of the equity securities of Wipro Airport IT Services Limited

#	51% of equity securities of Wipro Doha LLC are held by a local share holder. However, the beneficial interest in these holdings is with the Company.

The Company controls ‘The Wipro SA Broad Based Ownership Scheme Trust’ and ‘Wipro SA Broad Based Ownership Scheme SPV (RF) (PTY) LTD incorporated in South Africa.

 

(A)	Step Subsidiary details of Wipro Information Technogoty Austria GmbH, Wipro Portugal S.A, Wipro Europe Limited, Wipro Promax Holdings Pty Ltd and Wipro Technologies Canada limited are as follows:

 

Subsidiaries		Subsidiaries		Country of Incorporation
Wipro Information Technogoty Austria GmbH				Austria
		Wipro Technologies Austria GmbH		Austria
		New Logic Technologies SARL		France
Wipro Europe Limited (formerly SAIC Europe Limited)				U.K.
		Wipro UK Limited		U.K.

 

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Subsidiaries		Subsidiaries		Country of Incorporation
		Wipro Europe SARL		France
Wipro Portugal S.A.				Portugal
		SAS Wipro France		France
		Wipro Retail UK Limited		U.K.
		Wipro do Brasil Technologia Ltda		Brazil
		Wipro Technologies Gmbh		Germany
		Wipro Do Brasil Sistemetas De Informatica Ltd		Brazil
Wipro Promax Holdings Pty Ltd				Australia
		Wipro Promax IP Pty Ltd (formerly PAG IP Pty Ltd)		Australia
Wipro Technologies Canada Limited				Canada
		Wipro Solutions Canada Limited		Canada

26. Bank balances

Details of balances with banks as of June 30, 2015 are as follows:

 

Bank Name		In Current Account				In Deposit Account				Total
Axis Bank			—				26,602				26,602
ICICI Bank Ltd			29				24,254				24,283
Bank of Baroda			—				17,640				17,640
Canara Bank			—				14,890				14,890
Corporation Bank			—				9,500				9,500
Citi Bank			6,105				771				6,876
HSBC			4,775				1,805				6,580
Yes Bank			—				4,500				4,500
Vijaya Bank			—				4,300				4,300
Oriental Bank of Commerce			—				4,000				4,000
Wells Fargo Bank			3,834				—				3,834
IDBI Bank Ltd			55				3,050				3,105
Punjab National Bank			—				1,500				1,500
Saudi British Bank			100				611				711
Bank of Montreal			579				—				579
Deutsche Bank			543				—				543
HDFC Bank			281				114				395
Standard Chartered Bank			129				160				289
ING Vysya Ltd			8				250				258
Shinhan Bank			2				255				257
Ratnakar Bank			—				250				250
Indian Overseas Bank			2				144				146
Bank Of America			117				—				117
Abu Dhabi Commercial Bank			82				—				82
Standard Bank			74				—				74
BBVA Provincial			1				70				71
ANZ Bank			48				—				48
State Bank of India			42				—				42
Others including cash and cheques on hand			1,463				2				1,465
Total			18,269				114,668				132,937

 

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27. Subsequent event

Subsequent to the period end, on July 9, 2015, the Company entered into a definitive agreement to acquire Designit A/S (“Designit”), a global strategic design firm specializing in designing transformative product-service experiences, for a total purchase consideration of approximately EURO 85 million, including a deferred earn-out component. The acquisition strengthens the Company’s move to evolve its Digital offerings. The acquisition is subject to completion of customary closing conditions.

The accompanying notes form an integral part of these condensed consolidated interim financial statements

 

As per our report of even date attached		For and on behalf of the Board of Directors
for B S R & Co. LLP		Azim H Premji		N Vaghul
Chartered Accountants		Chairman		Director
Firm’s Registration No: 101248W/W- 100022		& Managing Director
Vijay Mathur		Jatin Pravinchandra Dalal		T K Kurien		M Sanaulla Khan
Partner		Chief Financial Officer		Executive Director		Company Secretary
Membership No. 046476				& Chief Executive Officer
Mumbai		Bangalore
July 23, 2015		July 23, 2015

 

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