Wipro CSR
Wipro CSR
Wipro CSR
Resilience
Annual Report 2019-20
Wipro Limited
Index
Financial Statements
Standalone Financial Statements under Ind AS 137
Consolidated Financial Statements under Ind AS 207
Consolidated Financial Statements under IFRS 279
Business Responsibility Report 336
Glossary 343
1 Wipro Limited
Corporate Overview | Management & Board Reports | Financial Statements
About Wipro
Be passionate Treat each Be global and Unyielding
about clients’ person with responsible integrity in
success respect everything
we do
Be passionate about We treat every human We will be global in our Integrity is our core and
clients’ success. We being with respect. thinking and our actions. is the basis of everything.
Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) is succeed when we make We nurture an open We are responsible It is about following the
our clients successful. We environment where citizens of the world. law, but it’s more. It is
a leading global information technology, consulting and
collaborate to sharpen people are encouraged We are energized by the about delivering on our
business process services company. We harness the power
our insights and amplify to learn, share and grow. deep connectedness commitments. It is about
of cognitive computing, hyper-automation, robotics, cloud, this success. We execute We embrace diversity of between people, ideas, honesty and fairness
analytics and emerging technologies to help our clients with excellence. Always. thought, of cultures, and communities and the in action. It is about
adapt to the digital world and make them successful. A of people. environment. being ethical beyond any
company recognized globally for its comprehensive portfolio doubt, in the toughest of
of services, strong commitment to sustainability and good circumstances.
corporate citizenship, we have over 180,000 dedicated
employees serving clients across six continents. Together,
we discover ideas and connect the dots to build a better and
a bold new future.
The world changed in a fortnight. As COVID-19 spread decisions have enabled us to meet the needs of changing
across communities, homes and affected businesses, markets, and will position us to emerge from the current
citizens and enterprises alike were forced to rethink how climate stronger.
they engage with one another. The global response has
paved the way to an altered future, one in which business We have partnered with enterprises around the world to
priorities & conversations have pivoted – maybe for help them chart their paths forward. The adoption of digital
forever. Enterprises are now worried less about disruptive business models will accelerate at an unprecedented pace.
technology, and more about how they can leverage Technology will enable companies to maintain business
technology to navigate disruption. continuity and build a foundation for sustainable growth.
And ultimately, it will help our clients, our communities and
Over the years, Wipro has built deep expertise across our company be more resilient.
industry domains, technologies & delivery models to enable
growth and innovation for our clients. These strategic
5 Wipro Limited
Corporate Overview | Management & Board Reports | Financial Statements
Resilience
Meets Crisis
Customer Speak Tales of Perseverance
I would like to extend our appreciation for the
Farhath Banu, a member of Wipro’s DOP-CBU team,
outstanding support we have received from Wipro in
traveled from Hyderabad to her home in Warangal
the past few weeks. In particular the on-site support
When real disruption strikes, talent and technology shortly before the COVID-19 lockdown began.
team and the Service Desk in leading by example. Using
Farhath’s remote-work environment was uprooted
alone in today’s digital world can accomplish only a well-worn saying, we are in unprecedented times,
on May 19, when her home was severely damaged by
so much. Ingenuity and determination can provide but the staff at Wipro have acted to every request
Cyclone Amphan. She and her family were unharmed,
from employees in a professional and very responsive
the spark to overcome insurmountable obstacles taking shelter in a nearby relative’s house – the same
manner with a ‘can do’ attitude for which we are most
house from which Farhath logged-in to work the very
and ensure continuity. As society grappled with appreciative.
next day. Kudos to her resilience, commitment and
the realities of a locked-down world, the Spirit dedication!
– General Manager, Information Technology, Large
of Wipro shone brightly, reflecting our company- Australian Utility
wide commitment to help the clients maintain
continuity and build resilience.
Customer Speak Vishnu Vardhan Reddy, part of Wipro’s Data Domain
Team, traveled 150 KMs from Hyderabad just before
On behalf of ITO, I would like to thank you and your India’s nationwide lockdown began to be at home
team for diligently working with us on a [Business with his family. Allocated a desktop, he was initially
Continuity Plan] during this COVID-19 crisis. Your unable to work due to a lack of high-speed internet
efforts in establishing a fully functional work-from- and poor mobile hotspot coverage. After borrowing
home status with seamless escalation and user a laptop and using a virtual desktop infrastructure,
interaction, all within a very short time, was impressive. he resolved his connectivity issues by leaving each
So far we have not seen any impact on services since day at 5am to travel by milk-ferrying vehicle to a
the time we invoked BCP on 17th March. Kudos to the stable equipped with a table and chair. Working from
entire team. this makeshift desk, he tolerates blistering heat to
Client Continuity Customer Speak ensure complete customer satisfaction, even if it
– IT Operations Governance Lead
As the COVID-19 lockdowns grounded airlines requires an extended shift. At 5pm, Vishnu makes
COVID-19 has significantly impacted the airport Leading American Video Game Company
worldwide, a large airport had to prudently the return trip home via the same milk ferry.
industry globally. Being the second busiest airport
shutdown international traffic while handling in North America for international passengers, it is
cargo planes containing essential supplies. In essential for us to continue the business 24x7. As we
just 48 hours, Wipro enabled more than 800 develop and execute our post-COVID-19 strategy, it is Customer Speak
airport employees to work from home with full equally important for us to provide confidence to our
We are grateful and appreciative of your outstanding While most Wiproites continue to work from home,
access to business-critical applications and passengers that it is safe to fly with us. Technology
work and sense of urgency in successfully launching a stories like these exemplify our determination to
a suite of training resources for their remote- plays a major role to enable this while keeping the
work-at-home workforce during lockdown to ensure overcome unprecedented challenges in support
work system. airport secure from increased cyber threats. We are
continuity of services to our members and providers. of our clients’ journey to build resilience.
working with our partner Wipro to enable the ‘new-
You have positively impacted the people we serve, and
normal’ for air travel, including contact-less operations,
together we are living our mission to help people live
wearable devices, enhanced e-commerce as well as
healthier lives and help make the healthcare system
online solutions for employees to enable new ways of
work better for everyone.
working, anytime, anywhere.
– VP, Global Strategy and Risk Management, Large
– Martin Boyer, Chief Information Officer, Greater
US Healthcare Payer
Toronto Airport Authority
Operating Cash Flow to EBITDA Free Cash Flow to Net Income Gross Utilization
Note:
1. IT services operating margin refers to segment results total as reflected in IFRS financials
2. Net Income has been considered after adjusting for profit attributable to non-controlling interest (Minority Interest)
3. Attrition rates refers to voluntary attrition computed on a trailing twelve months basis excluding DOP
4. For convenience, the market capitalization in Indian Rupees as per NSE have been translated into United States Dollar at the certified foreign exchange rate published by
Federal Reserve Board of Governors on the last day of the respective financial years
5. Payout Ratio has been computed by dividing the payout (comprising interim and final dividend declared for the respective financial year and buy back if any, considered
based on the date of Board’s approval) to shareholders by net income on a trailing three year basis
9 Wipro Limited
Corporate Overview | Management
Management&&Board
BoardReports
Reports | | Financial
Financial
Statements
Statements
Sustainability Highlights
Ecological
Sustainability
Education
Rewards &
School Education WiSTA and WIMS programs Community Customer & Recognition
cumulatively. In FY20, the Care Suppliers
• Supported 132 organizations programs in partnership with
total number of new entrants
working towards systemic Sheffield Hallam University
into the work integrated
reforms in school education (SHU UK) to provide rigorous
learning program was 2,697
through 198 educational continuous professional
while the aggregate strength development to STEM • Participated in • Member of Dow Jones (CDP) - Climate Change Awards 2019, UK: Winner
projects and initiatives • Over 122,000 people from
across 4 years was about teachers. SHU had recruited sustainability Sustainability Index (DJSI), Assessment in the category “Distinction
across 29 states disadvantaged communities
9,000 35 new STEM teachers and
• Supported 16 new have access to primary assessment anchored World for the 10th time in a • Received Best of Best Award in Inclusion and Diversity”
• Trained 25,000 students teacher mentors in Q2
organizations in FY20. healthcare through by 100+ customers row for FY19 from ‘Association for • 2019 Working Mother
and 49 faculty in digital Sustainability Education
Cumulatively, 88 9 healthcare projects across • Adopted EPEAT • Named as 2020 World’s Talent Development’ (ATD) & Avtar Most Inclusive
technologies through our
organizations supported 5 states program in 2016 for IT Most Ethical Company for Companies Index (MICI):
program TalentNext till date. • Recorded highest • Certified Top Employer in
towards our goal of 100 • Restored livelihoods of more hardware procurement the 9 th successive year by Declared as a “Champion
10% of students have joined participation in flagship Australia 2020
organizations by FY20; 60 than 8,000 people affected for laptops, desktops, the Ethisphere Institute of Inclusion”
our organization. In FY20, 453 Wipro Earthian program from • Certified Great Place to
under Seeding program and by natural disasters
students joined while 757 1,498 schools and colleges printers, mobiles and • Ecovadis-CSR rating of Gold Work, India • 2019 Working Mother &
28 under the Grants program (cyclones & floods) through
were selected for FY21 across 79 districts in 29 servers. In CY 2019, • Member of Vigeo Eiris Avtar Best Companies for
• 4 Regional Partners’ Meets 6 rehabilitation programs • Winner at the NASSCOM
states and 3 UT’s in FY20 purchased 108,000+ Women in India (BCWI)
organized with participation across Kerala, Odisha, Emerging Market Diversity and Inclusion
Science Education • Launched Wipro Sustainability Uttarakhand and Tamil
Gold, Silver and Bronze Sustainability Index list: declared as one of the
from 150 participants awards (2019) for the
Fellowship Program Educator Program, to support Nadu category products (comprises of the 70 most “100 Best Companies for
• Nearly 42,000 children from ‘Gender Inclusion’ category
grassroots environment • Topcoder is our Women in India
underprivileged communities • Urban solid waste advanced companies in the
• Wipro Science Education educators across India. • Featured in the Bloomberg
benefited from our 22 management project in crowdsourcing platform Emerging Market Region) • “Star Performer of the
Fellowship Program running 11 educators selected from Gender Equality Index
education projects in 8 states in partnership with 7 Bengaluru and Mysuru for enterprise with 1.6 • Member of FTSE4Good year” in Everest Group
10 NGO’s 2020
through our community universities is working with provides social, nutritional million members from Index Series and also a PEAK Matrix™ Service
500 teachers across 35 • Faculty Development and health security to more • Received a score of 90
program 255 countries- close global sector leader Provider of the Year awards
school districts in 7 states Program on sustainability, than 12,000 workers in the out of 100 on the 2020
• Supported the educational to 26K challenges and for 2020
across the USA MOOC’s launched at IIMB informal sector • Received A- in Carbon Corporate Equality Index
and the educational and for 39 faculty across India tasks were completed
• Developed UK’s first Master’s Disclosure Project
rehabilitative needs of • Agro-forestry project in for Wipro customers in • Annual HR Distinction
program in STEM education focusing on simulating
over 7,200 underprivileged rural Tamil Nadu helped FY20
in partnership with King’s exercises on climate change
children with disabilities, College, London. The first 100 farmers in integrated
and energy for participants
through 16 projects in 6 states batch which includes 15 farming by planting
• 6 sustainability quizzes 40,000 trees and benefited
in-service teachers on Wipro
Engineering Education Fellowship, as well as 2
conducted with 1,354 400 farmers through seed
international students are participants from 677 teams distribution and training
• Supported 33,000 students progressing as per plan • 22 college sustainability programs
to pursue higher education in • ‘Wipro Teacher Fellowship’ internships facilitated at
engineering through WASE, and ‘Wipro Teacher Mentor’ 6 partner organizations
“I am confident
that we will emerge
from this crisis, a
stronger Wipro
and a more valuable
partner to our
clients than
ever before.”
Empowering Resilience for a brighter future The other objective that will remain of paramount importance
is of employee safety and well-being. In March, at the early
As companies focus on resilience to survive and thrive, onset of COVID-19, we successfully triggered our business
one trend that I see accelerating is the rapid adoption of continuity plans and enabled work from home for more than
technology. Businesses across the world were undertaking 90% for our global employees. What has been heartening is
large changes, even before the outbreak, but this crisis now that a change of this scale was executed very smoothly. In
provides an opportunity to hasten the transformation which these past few months, we have settled well into this new
will be imperative to the existence of many. Uneasy consumers way of working and our focus remains to provide impeccable
will precipitate this shift to digital across industries and service to our customers. We actively leverage collaborative
markets. We expect a profound impact on the established technologies to remain connected and engaged, ensuring
ways of operations. The work needs to be done ‘anywhere by employee welfare and seamless customer service delivery.
anyone’. Virtual, remote, community-based and distributed We believe strongly that the model of work has changed
work models will become mainstream, empowered by forever, and we will never go back fully to the old ways of
collaborative technologies. Enterprises will also need to working. We will increasingly leverage more technology to
evaluate their technology stack so that it enables them to onboard, induct, train and engage with our employees, and
operate with flexibility and agility, and work with partners who our workforce will never come back to a 100% work from
can respond and adjust quickly to changing circumstances. office mode.
Our strategy of driving a “Digital first” approach through As the world’s best scientific minds scramble to find a
four foundational pillars of Business Transformation, vaccine or a cure for the virus, as businesses we have a deep
Modernization, Connected Intelligence and Trust become responsibility to the communities within which we operate.
particularly relevant in this context. We have made Our response is an integrated set of carefully targeted
differentiated investments to strengthen our offerings in actions that we are implementing in close collaboration with
digital, cloud, engineering and cybersecurity. Digital has the Azim Premji Foundation and Wipro Enterprises Pvt Ltd,
now become the only way forward. We have made massive where we have jointly committed `1,125 crores (~$150M).
strides in accelerating our clients cloud journey through our Our commitment rests on two crucial pillars, the first is to
differentiated cloud studios. We are continuing to enhance balance short-term relief with medium-term requirements
go-to-market partnerships with hyper-scalers and focused over the next 12-18 months and the second is to prioritize
on creating innovative solutions. We have been endorsed as our effort to the most vulnerable sections of society who have
leaders by key analyst firms which reinforces our position been most adversely affected. A crisis like this requires us
as a trusted partner who drives value across three key to think differently and to respond in an innovative, dynamic
pillars – Business acceleration, Customer experience and manner. A good example of this is how we repurposed the
Connected Insights. We continue to make disproportionate kitchen infrastructure in our facilities in Bangalore, Pune and
investments in cybersecurity in areas like Security Strategy, Kolkata to provide cooked meals twice daily for more than 45
Compliance Advisory, Cloud Security and OT & IoT Security days running to thousands of vulnerable families in India. We
to address the dynamic threat landscape. We now have 15 have been able to provide around 3 million meals during this
cyber defense centers across the world to locally manage period serving more than 250,000 people. The other example
security operations. We have partnered strategically and is re-purposing one of our unused campuses in Pune into
actively with the start-up ecosystem. Wipro Ventures, our a 450 bed COVID-19 isolation hospital. Wipro Limited has
corporate venture fund, has invested in cybersecurity start- specifically committed `100 crores towards these efforts and
ups like IntSights, Vectra.AI, CyCognito and CloudKnox.io. Our contributed `25 crores of this to the Prime Minister’s relief
delivery model that enables a virtual, adaptive, and intelligent funds.
enterprise is based on the principles of distributed, no-shore,
agile workforces and a cloud-first approach. We are able Our Performance & Return to Shareholders
to provide virtual and community work models leveraging
our solutions, such as Talent as a Service (“TaaS”) through For the year ending 31st March 2020, our IT Services Revenues
Topcoder. This platform provides continuous connectivity at $8.26 billion grew by 3.9% YoY (in constant currency and
with seamless end-point security, access from anywhere and after adjusting for the divestments) and our Net Income at
real-time collaboration. `97.2 billion grew by 8.0% YoY aided by improved operating
17 Wipro Limited
day. These five habits are Being Respectful, Being Responsive,
Together, Always Communicating, Demonstrating Stewardship and
Building Trust. I believe in their power together to deliver a
we shall great impact. One of the things that I have spent a significant
amount of time over the last few months is on this cultural
transformation. I am humbled and energized in seeing our
overcome and values and culture at every level in the organization, not just
in matters of business, but also in our strong sense of purpose
triumph! to our communities and the worlds at large. I am confident
that we will emerge from this crisis, a stronger Wipro and a
more valuable partner to our clients than ever before.
I am deeply honored to be
invited to lead Wipro, an
extraordinary company
and an exemplary
corporate citizen with
a deep technology
heritage built on a strong
foundation of values. I look
forward to working closely
with Rishad, the Board,
senior leadership and the
hugely talented employees
of Wipro to turn a new
chapter of growth and
build a better tomorrow for
all our stakeholders.
Thierry Delaporte*
19 Wipro Limited
Corporate Overview | Management & Board Reports | Financial Statements
Board of Directors
Deepak M. Satwalekar 2
Thierry Delaporte 1
Independent Director Arundhati Bhattacharya 3
Chief Executive Officer & Independent Director
Managing Director (Designate)
Abidali Z Neemuchwala 4
Chief Executive Officer &
William Arthur Owens Managing Director
Independent Director
Appointed as Chief Executive Officer and Managing Director of the Company with effect from July 6, 2020
1
Ireena Vittal Appointed as Independent director with effect from July 1, 2020
2
Independent Director Steps down as an Independent director with effect from close of business hours on June 30, 2020
3
4
Resigned as the Chief Executive Officer and Managing Director with effect from the end of the day on June 1, 2020
Given these times, what are the key attributes/factors that 2. A ‘Digital First’ approach that minimizes business
distinguish resilient enterprises from others who have disruption and helps to accelerate growth and profitability
struggled to cope with the crisis? in the long term
Bhanu: A resilient enterprise distinguishes itself in its 3. Ability to leverage their ecosystem of alliances, partners,
preparedness & response during times of crisis. When a crisis start-ups and academia for a collaborative and innovative
hits, we believe that all enterprises are tested in their ability to approach to build enterprise solutions for newer and
respond, react and thrive. To respond with urgency, they need more complex business problems.
to have a strong BCP framework that can be put into action
Do you think that the disruption caused by the pandemic
in no time. For instance, we established three task forces to
will change the pace of ‘Innovation’ if ‘resilience’ becomes
formulate our immediate response to secure and stabilize
priority?
our workforce, move operations to Work From Home (‘WFH’)
model and manage client priorities. From a short-to-medium Bhanu: Disruption and uncertainty caused by a pandemic
term, enterprises need to initiate changes to sustain and can lead to a knee-jerk reaction & sometimes drive a short
redefine business operations, such as enabling clients and term orientation to innovation, while resilience becomes
themselves to “work from anywhere” with digital enablement. an immediate priority. However, in leading organizations,
Finally, to thrive in the long-term, organizations need to resilience and innovation go hand in hand. This may require
build strategies to come out stronger. Resilient enterprises re-purposing businesses to serve new and unforeseen
possess three fundamental attributes that separate them types of demand, new clients and markets. Through our
from the rest: own experiences, we’ve seen how this crisis has challenged
enterprises to take bold steps to do the things that were
1. Strong leadership, culture and processes to sense and
earlier thought to be outside the realm of possibility, such
respond with agility, along with a ‘growth mind-set’ to
as moving 90-95% of the workforce to a WFH model,
accelerate the pace of change and adaptability
managing transitions and cut-overs remotely, or even moving
23 Wipro Limited
We have been investing in a “Digital First” approach now for a model that blends the best of work-from-office, remote-
the last three years, how can these strengths be leveraged working and crowdsourcing making it boundary less while
by our customers as they get back to business? being resilient and secure.
Bhanu: As I mentioned earlier, a “Digital First” approach is one 2. Method of ‘The Wipro Way of Working’: A method that
of the key attributes that distinguishes resilient enterprises involves bringing together years of experience in
from others. Enterprises where digital has been a core and delivering excellence coupled with innovative methods
strategic priority have weathered the crisis bravely. Whether that deconstructs work and how it is executed in an agile-
it is the ability to operate in a virtual model, buy/consume anywhere, community based and remote manner for a
services on demand, leverage talent on demand, or drive location agnostic (no-shore) world.
contactless ways of working, digital enablement has been
3. Machinery as in “Engineering that powers the Wipro Way”:
the critical element in sustaining and accelerating business
The machinery integrates the technology assets to deliver
growth and profitability.
value at the intersection of partner tools, Wipro and client
The solutions and frameworks developed as a part of our assets. It comprises of holistic engineering solutions that
Digital First approach is already helping customers to be democratize our engineering assets and capabilities to
responsive and resilient as they get back to business. For empower our teams to create value for clients irrespective
instance, our IP based offerings such as LiVE Workspace™ of where they are.
Connect for efficient remote working, the cloud enabled
4. Mind-set of “New age talent focused on problem discovery
VirtuaDesk™ VDI solution, Wipro’s SmartTwin and Cognitive
and solving through continuous learning”: A mind-set that
SupplyChain solutions to rethink supply chain resilience,
shifts the paradigm from solution execution to problem
Digital Assurance as a Service to enable remote testing and
discovery and problem solving through learning that is
our Wipro HOLMES™ based customer engagement solutions
on-the-go, fit for purpose and full spectrum resulting in
are seeing an increased pace of adoption. Our Digital First
π/X shaped talent.
approach recently helped some large clients such as those
in the financial sector to quickly process loan disbursals, Simply put, the ‘Proteus Stack’ is Wipro’s answer to
develop online solutions to help their customers avail transforming the traditional delivery model.
stimulus packages, and also manage supply chain planning
What are the employee safety measures that Wipro will
to effectively deliver essential goods to those in need.
adopt as an organization when they get back to offices?
As we look into the future, will we need to transform the
Saurabh: We continue to have ~90% of our employees in a
traditional IT Services delivery model and how ready is
WFH mode. In parallel, we have put in place a comprehensive
Wipro to adapt?
plan for those who have to come to our offices including –
Bhanu: The pandemic has massively accelerated the social distancing, thermal checks before they enter the facility,
adoption of the ‘no-shore’ model and tilted most business presence of medical staff in our premises, sanitization of
operations towards remote delivery models. At Wipro we have common areas as well as desktops/workstations We are also
been at the forefront of pioneering the ‘no-shore concept’ engaged in campaigns on comprehensive hygiene practices
and ‘crowdsourced and community’ model of delivery. Now, as for our employees. Finally, there is continuous dialogue with
our clients’ ecosystem resets itself and works towards being our employees, assuring them and their families that our
future ready, we have launched an adaptive and boundary offices are safe for work. Over the period of next few months,
less operating model called the ‘Proteus Stack’ (named after we will have a phased approach of getting more people to
the Greek sea god) to demonstrate our flexibility, versatility work in our campuses.
and adaptability towards the changing situation.
Wipro has a robust balance sheet with a gross cash of $4.4
The ‘Proteus Stack’ is built on our existing ‘4M framework’ that billion and in the past we have made several bold bets in
comprises of: terms of both organic and inorganic investments. What is
our strategy going forward?
1. Model as in ‘How teams are organized’: As digital
transformation accelerates over the next few years, more Jatin: We have a very clearly articulated strategy around
and more organizations will choose to move to teams/ which all our organic and inorganic bets are made. Through
structures that are designed to anticipate customer needs our ‘big bets’ program we have made differentiated organic
and align to business first principle. We have established investments in four areas of Digital, Cloud, Engineering
Services and Cyber Security. Most of these investments equitable and in resonance with the scale of challenge I am
have been made with a view to building consultative selling, confident we will come out stronger and fitter from this phase.
enhancing technical depth and developing a vibrant partner From a medium-term perspective, automation and offshoring
ecosystem. Our ‘Innovation ecosystem’ helps us tap leading- will be the two key levers that will transform our cost
edge and disruptive technologies to bring the best solutions structure. Finally, our cost management program is focused
to our clients through our three-pronged initiatives: Wipro on right areas and we will not compromise on investments.
Ventures, Horizon Program, and selective M&A. In fact, crises like this provide an excellent ‘reset opportunity’
and we remain committed to spends in areas that will shape
In FY20 we acquired Rational and ITI technologies. Rational
our future.
strengthens our customer experience portfolio and ITI
enhances our capabilities in Product Lifecycle Management Will some of the actions that are necessary to defend
(PLM). We continue to actively look at opportunities that margins have any impact on our ability to attract and retain
provide us with newer technological capabilities or provide the top talent?
access to a newer market or customer.
Saurabh: Our cost management program will reflect some
Wipro Ventures which was launched as a $100 million Fund tough choices. However, they are equitable and in line with the
in early 2015. We have launched Fund-2 with an allocation external environment. Also, these are not taken in isolation
of $150 million earlier this year. Wipro Ventures invests but through a continuous dialogue and communication with
in early- to mid-stage enterprise software startups. As of our employees. Our employees understand the purpose of
March 31, 2020, Wipro Ventures has active investments in these actions and that these are short term in nature. The
and partnered with 14 startups in the areas of AI, Business crisis we are in, is unprecedented and our response is a
Commerce, Cybersecurity, Data Management, Industrial IoT, collective and resolute. Such times build our resilience as
Automation and Cloud Infrastructure. So far, our experience an organization and an employer. Many of our employees
has been quite encouraging. who have worked with us for decades, know and understand
that Wipro remains the best employer for long-term career
The goal of the Horizon Program is to drive organic incubation
growth. We are confident that will continue to hire and retain
in emerging areas covering products, platforms, solutions
top industry talent.
and capabilities. During the year ended March 31, 2020, we
funded 12 projects as part of this program in areas such as Wipro’s Free cash flows as a % of Net Income in the last few
robotics, software-defined everything, autonomous vehicle, years have been amongst the best in the industry. Also, the
connected cars, digital twins, industry solutions such as corporate actions that Wipro has undertaken have ensured
cargo management etc. a healthy EPS growth of 11.2% YoY. In the post COVID era, do
we see a change to our capital allocation philosophy?
Wipro’s margins have been resilient over last two years.
Given that the demand side pressures that will impact our Jatin: We have a robust business model. While there is a
growth rates in FY21, what are the levers on the cost side lot of uncertainty on the horizon, we have been through
that provide a strategic flexibility? such adverse cycles before. We are quite confident about
continuing to generate healthy free cash flows. Our capital
Jatin: Our ability to defend our margins in the last two years
allocation policy is to return 45% to 50% of the Net income to
was a result of the actions we took on improving the quality
our shareholders over a block of years through a combination
of our revenues, enhancing automation/AI in our delivery
of dividends and buy-back. In the last three years our
and optimizing the costs in our operating subsidiaries. We
payout ratio has been even higher at 87.3%. Presently we
expect that the demand will remain an evolving topic in
do not foresee any changes to our articulated policy and
FY20-21. In response to this uncertainty, we have developed
remain committed to generating consistent returns for our
a comprehensive cost management program. We will have
shareholders.
to make some tough choices in short term, but these will be
25 Wipro Limited
Management Discussion
and Analysis
Industry Overview
Global IT service providers offer a range of end–to-end and solutions to enhance the consumer experience. Big data
software development, digital services, IT business and analytics, cloud computing, cybersecurity and advanced
solutions, research and development services, technology technologies such as artificial intelligence (“AI”), machine
infrastructure services, business process services, learning (“ML”), IoT, robotics, and 3D printing are profoundly
consulting and related support functions. According to impacting enterprise, government and end consumer segments
the Strategic Review 2020 published by NASSCOM (the by enabling new business opportunities across sectors.
“NASSCOM Report”), IT export revenues from India grew by
The markets your Company serves are undergoing a massive
8.1% to an estimated $147 billion in the fiscal year 2020.
disruption due to the outbreak of COVID-19. The situation
India’s global IT industry grew by 7.7% to reach $191 billion
caused by the COVID-19 pandemic continues to evolve and
during the year ended March 31, 2020. According to the
the effects on such markets remain uncertain. The outlook
NASSCOM Report, “Digital” continues to drive growth (more
going forward will depend, in addition to other factors, on how
than 50% of growth in fiscal year 2020) and now contributes
COVID-19 continues to affect the global economy.
$51 billion to the overall IT industry in India. Technologies
such as industrial automation, robotics, cloud, Internet
of Things (“IoT”), augmented reality (“AR”)/virtual reality Business Overview
(“VR”) and blockchain continues to fuel growth.
We are a global technology services firm, with employees
Growth in core traditional services revenues are expected across over 55 countries and serving enterprise clients across
to be moderate, whereas digital technology is continuing to various industries. We provide our clients with competitive
gain prominence due to increased technology adoption by advantages by applying various emerging technologies and
governments and businesses upgrading platforms, products ensuring cyber resilience and cyber assurance. We work with
our clients not only to enable their digital future, but also to to our customers, briefed them of the measures we were
drive hyper efficiencies across their technology infrastructure, adopting and sought their approval. Through these efforts,
applications and core operations, enabling them to achieve we have been able to continue to support the majority of
cost leadership in their businesses. our customers. Our teams have settled into the new ways of
working and our managers are tracking employee welfare,
We are recognized by our clients for our ability to bring in “an
productivity and customer service delivery progress
integrated perspective”, or our ability to bring together broad
through the use of various tools. We are collaborating with
and deep technology and domain expertise, our ability to draw
our customers on delivering on our commitments.
learnings and apply insights from one company or sector to
another and our ability to provide end-to-end services. Our However, the markets we serve continue to undergo massive
clients value our consistent excellence in execution and our disruptions due to the COVID-19 pandemic. The World Bank
ability to proactively incorporate relevant innovation. predicts that the global Gross Domestic Product (“GDP”)
will decline by 5.2% in the year 2020. The economic fallout
Our IT Services segment provides a range of IT and IT-enabled
of and the subsequent recovery from COVID-19 will depend
services which include digital strategy advisory, customer-
on multiple factors, such as recovery driven by containment
centric design, technology consulting, IT consulting, custom
efforts, supply chain disruptions, impact of lockdowns etc.
application design, development, re-engineering and
The continued spread of COVID-19 could adversely affect
maintenance, systems integration, package implementation,
workforces, customers, economies and financial markets
global infrastructure services, analytics services, business
globally, potentially leading to further economic downturn.
process services, research and development and hardware
and software design to leading enterprises worldwide. This could decrease our customer’s spend on technology,
adversely affect demand for prospective projects / ramp-
Our IT Products segment provides a range of third-party IT
ups, cause cancellations or ramp-downs of existing projects,
products, which allows us to offer comprehensive IT system
increased requests for furloughs, increase pricing pressure,
integration services. These products include computing,
higher travel restrictions, impose supply-side constraints,
platforms and storage, networking solutions, enterprise
and adversely impact cash conversion cycles. Macroeconomic
information security and software products, including
conditions caused by COVID-19 could also result in financial
databases and operating systems. We provide IT products
difficulties for our clients, including limited access to the
as a complement to our IT services offerings rather than sell
credit markets, insolvency or bankruptcy. Further while
standalone IT products.
various cybersecurity control mechanisms are deployed and
Our ISRE segment consists of IT Services offerings to periodically reinforced, security control mechanisms may
organizations owned or controlled by the GoI and/or any not always be successful, considering the complexity of the
Indian State Governments. Our ISRE strategy focuses on environments, inter-dependencies, sophisticated attack
consulting and digital engagements, and we are selective in methodologies, highly dynamic heterogeneous systems,
bidding for SI projects with long working capital cycles global digital presence hosted both in cloud and on premises
with work from home arrangements.
Covid-19 Impact on Business Outlook
The potential impact to our results going forward will
On March 11, 2020, as COVID-19 spread rapidly, both in depend to a large extent on future developments regarding
terms of number of cases and the affected countries, COVID-19 that cannot be accurately predicted at this
the World Health Organization (“WHO”) characterized time, including the duration and severity of the pandemic,
COVID-19 as a pandemic. the extent and effectiveness of containment actions and
the impact of these and other factors on our employees,
As a response to COVID-19, we activated our COVID-19 customers, partners and vendors.
Global Crisis Management task force in early March 2020.
The task force was chaired by our Chief Operating Officer In summary, we have a strong Business Continuity Plan
and consisted of several cross-functional teams, including framework that enabled us to respond to the COVID-19 crisis
business continuity, IT and cybersecurity services. Most with agility. ~90% of our workforce are enabled to work from
of our employees were quickly asked to work from home. home and we continue to service our customers, delivering
In order to better support employees working from home, on several time critical milestones and processes. Our
we enhanced our cybersecurity measures by installing ‘Digital- first’ strategy and our investments in Digital, Cloud,
secure agents in our systems. In parallel, we reached out Engineering and Cybersecurity have become particularly
27 Wipro Limited
relevant in the post COVID-19 business environment. We will Adaptable, Agile and Resilient Enterprise – Enterprises
remain resolute in our goals of employee safety, business will need to evaluate their technology stack to allow
continuity and of being a trusted partner to our customers. them to operate with flexibility and agility, and work with
partners who can respond and adjust quickly to changing
Our Business Strategy circumstances.
Automation and Autonomous – Social distancing will
Our strategy is about driving a “Digital first” approach through four become a key design principle element from an operating
foundational pillars: Business Transformation, Modernization, model standpoint across businesses and will be a key factor
Connected Intelligence and Trust. As part of this approach, we that will accelerate the adoption of automation, autonomous
are prioritizing and investing significantly to drive growth in key and low or no human touch or contactless ways of working.
strategic fields such as digital, cloud, cybersecurity and industrial
Safe Enterprise – Focusing on employee health and safety,
and engineering services through our “Big Bet” program. For
enterprise health and risk management. Given large scale
example, our “Big Bet” in each of digital and cloud is at the heart of
disruptions in supply chains globally, we anticipate that
our Business Transformation and Modernization pillars, while our
organizations will invest in decentralizing and nearshoring
“Big Bet” in industrial and engineering services is central to our
supply chains in the future and reduce dependency on a
Connected Intelligence pillar and our “Big Bet” in cybersecurity
few countries.
is central to our Trust pillar. Talent and Delivery Models, IPs and
Platforms, and Open Innovation are the underlying strategies Enterprises will increasingly require partners, such as Wipro,
that support the four pillars. who bring capabilities that span across consultancy, design,
Our vision is to earn our clients’ trust and maximize value engineering, systems integration and operations to enable
of their businesses by helping them in their journey to ‘re- them to achieve the accelerated digital transformation.
invent’ their business and operating models with our “Digital The transformation can only be effective if delivered in the
first” approach and best in class execution. context of the relevant industry or domain, hence it is critical
to us that we provide strong domain expertise along with
Recent Developments “Digital.”
29 Wipro Limited
Banking, Financial Services and Insurance business unit and talent pools in emerging technologies such as Full Stack,
Medicare Advantage in our Health Business Unit. DevOps, AI/ML, Cloud, Analytics and other Digital skills with our
internal TopGear hybrid community. It also acts as a structured
Open Innovation: Open Innovation is about engaging learning path for accounts providing hands-on experience
with the “external innovation” ecosystem to tap leading- across more than 200 skills. We are creating a pool of Challenge
edge innovation and disruptive technologies to bring the Architects, Topcoder Co-pilots and Reviewers to expand the
best solutions to our clients. It is about tapping the global percentage of work delivered through crowdsourcing.
innovation network through vehicles such as Wipro Ventures,
Research Partnerships and Horizon Program, crowdsourcing Partner Ecosystem: We have a dedicated unit to drive
models, such as Topcoder and M&A. and deepen our partner ecosystem and to drive creation
of new markets and solutions, expand in key verticals and
Wipro Ventures: The strategic investment arm of Wipro, geographies, drive innovation in our offerings and drive go-to-
Wipro Ventures invests in early- to mid-stage enterprise market outcomes. We have subdivided the partner ecosystem
software startups. Wipro Ventures was launched as a $100 into the following categories:
million Fund in early 2015. In February 2020, Wipro Ventures
received an additional allocation of $150 million for Wipro a. Strategic Partners: Multiple product lines with significant
Ventures Fund II. As of March 31, 2020, Wipro Ventures has business volume and potential.
active investments in and partnered with 14 startups in the b. Growth Partners: Single practice alliances.
following areas – AI (Avaamo, Inc., Vicarious FPC, Inc.), Business
c. Niche Partners: Niche products with differentiated
Commerce (Tradeshift, Inc.), Cybersecurity (IntSights Cyber
solutions.
Intelligence Ltd., Vectra Networks, Inc. CyCognito, CloudKnox),
Data Management (Incorta), Industrial IoT (Altizon Systems M&A: Acquisitions are key enablers for us and drive our
Private Ltd.), Fraud and Risk Mitigation, Testing Automation capability to build industry domain, focus on key strategic
(Headspin, Inc., Tricentis GmbH, Sealights) and Cloud areas, strengthen our presence in emerging technology
Infrastructure (CloudGenix, Moogsoft). In addition to direct areas, including Digital, and increase market footprint in
investments in emerging startups, Wipro Ventures has newer markets. We focus on opportunities where we can
invested in five enterprise-focused venture funds: B Capital, further develop our domain expertise, specific skill sets and
TLV Partners, Work-Bench Ventures, Glilot Capital Partners our global delivery model to maximize service and product
and Boldstart Ventures. enhancements and create higher margins. We also evaluate
business units to determine if divestitures would maximize
Research Partnerships: Collaboration with academic
our focus on key priorities.
institutions and associations in the United States, Europe,
Israel and India in the fields of computer and electrical We have invested in acquiring new technology and skills.
engineering to promote innovative technology research In the last three fiscal years, we have completed several
and capability. mergers and acquisitions, including the acquisitions of:
Horizon Program: The goal of the Horizon Program is to drive i. International TechneGroup Incorporated, a global digital
organic incubation in emerging areas covering products, engineering and manufacturing solutions company and
platforms, solutions and capabilities. In order to achieve this a world leader in CAD and PLM interoperability software
objective, we are investing in key areas such as AI, robotics, services;
software-defined everything, autonomous vehicle, connected ii. Rational Interaction, a full-service digital CX solutions
cars, digital twins, cybersecurity, Industry 4.0 and industry firm that brings the strategic capabilities of a consultancy
solutions such as cargo management. During the year ended together with the creative and digital prowess of an
March 31, 2020, we funded 12 projects as part of this program. agency;
Crowdsourcing (Topcoder): A community and crowdsourcing iii. Cooper Software Inc., an award-winning design and
platform with over one million developers, designers, data business strategy consultancy, which expands our
scientists and testers. Topcoder provides focused enterprise digital reach in North America and adding capabilities in
offerings around AI/ML and analytics, digital experience (“DX”), professional design education; and
Quality as a Service (“QaaS”), workforce transformation, TaaS iv. InfoSERVER S.A., an IT services provider providing custom
and hybrid (certified) communities. We are also using the application development and software deployment
Topcoder Hybrid Crowd Platform to scale and engage in-house services in the Brazilian market.
31 Wipro Limited
i-Connect™ (IoT), WANFreedom (SD-WAN), Wipro HOLMES™ • Data transformation – Helping clients adopt modern
(intelligent automation), AppAnywhere and FluidIT, a data platforms, processes and methods in on-premises,
comprehensive partner ecosystem and our skills in emerging cloud and hybrid ecosystems to support analytics, AI
technologies like software-defined everything, opensource, and ML workloads through a set of themes that brings
DevOps and IoT ensure that we are a one-stop shop for all transformative change to the data landscape.
cloud and IT infrastructure needs.
Industrial and Engineering Services (“IES”) Cybersecurity and Risk Services (“CRS”)
IES is the driver of our engineering services portfolio and CRS enables next generation global enterprises to enhance
facilitates more than 375 clients across multiple industries their business resilience through an intelligent and integrated
and/or verticals by providing a platform to innovate and risk approach that has modernizing security at its core. CRS
engineer the products, platforms and technologies at scale. enables the customers to define their cyber strategy and the
This platform of services offerings, called “EngineeringNXT”, cybersecurity needs, envisaging best practices across people,
combines the maturity of engineering processes, the passion process and technology. Leveraging a large pool of experienced
for the latest technology and access to a diverse ecosystem security professionals and a global delivery model that leverages
to deliver value to customers at various stages of the product our Cyber Defense Centers, we execute projects and deliver
or platform life cycle. managed and hosted services backed by our Cyber Defense
Platform. Our unique top-down risk-based approach delivers
Over the years, IES has created value with our engineering innovative security platforms for better scalability, improved
services offerings for numerous multinational corporations by cost efficiency and greater agility.
engineering innovative customer experiences, personalizing
products and technologies for new markets, integrating Digital Operations and Platforms (“DOP”)
next-generation technologies, facilitating faster time to
Wipro DOP is a leader in providing next generation technology-
market and ensuring global product compliance. Today,
led business process services to global enterprises. Our mission
with more than 400 patents, IES continues to deliver these
is to drive superior customer experience and maximize returns
services by leveraging its innovative solutions, engineering
by bringing down operating costs and improving efficiency,
processes and delivery excellence across the spectrum,
quality and productivity. Our process excellence and domain
covering connectivity (wireless technologies), Cloud and Data
expertise helps us reimagine, redesign, standardize and
Platforms, Systems Design, very-large-scale integration
transform business processes and enterprise operations
(“VLSI”), next generation software development and testing,
transformation helps clients leverage and deliver benefits from
electronic data system (“EDS”), PLM, IoT and Industry 4.0.
RPA, AI, analytics and other emerging technologies. Some of our
Data, Analytics and AI (“DAAI”) leading offerings:
As a preferred partner for our customers’ data and insights • Digital Customer Experience: Our analytics powered
transformations, we help them in their journey to transform customer service platform resolves various complex
into intelligent enterprises by automating decision making, interactions via AI chatbots. We also leverage AR and VR in
powered by insights and driven by rich datasets. Wipro customer care.
leverages AI, ML, advanced analytics, big data and information • Supply Chain Management: RPA and AI automate our
management capabilities to deliver measurable business end-to-end order management platform for more than
outcomes across customers’ journey from data to decisions, 15 mn+ annual transactions.
focusing on:
• Finance and Accounting: We manage end-to-end services
• Insights transformation – Transforming legacy decision- for 134+ global clients delivering benefits through smart
making processes into modern, elastic and AI and ML operations.
driven, insights-centric capabilities that enable smarter
• Marketing-as-a-Service: We manage marketing
processes. This ensures that our clients get pertinent
operations to cover above the line and below the line across
insights in real-time to the right decision-makers to
design, content management, social media marketing, etc.
fuel innovation, productivity and investment, as their
organizations become intelligent enterprises. • Trust and Safety: We help companies having online
presences to monitor, police and prevent fraudulent behavior.
33 Wipro Limited
Edge and cloud native based solutions we bring together an 3. Wipro Digital’s integrated propositions in customer
ecosystem of expertise to build IP, platforms and domain/ mapping and interaction, seamless integration and
industry-focused solutions that help our customers reach their data science and insight differentiate its approach with
business goals. Our deep domain knowledge, wide range of customer journey engineering.
service offerings, investments and capabilities in cybersecurity, 4. Our organizational culture of innovation and our early start
cloud, open source and next-generation engineering services in deploying cutting edge platforms and technologies that
and solutions has positioned us as a top integrated hardware drive hyper-automation and achieve industrialization of
and software research and engineering service provider. service delivery, such as Wipro HOLMESTM.
Communications (“COMM”): Wipro has been enabling the 5. Our investments in developing IP across products,
digital transformation journey of Communications Service platforms, frameworks, solutions, components,
Providers (“CSPs”) across the globe as they transform to accelerators, tools and apps that enable us to provide
become Digital Service Providers. Our digital business solutions standardized solutions to our customers and obtain
are tailored for CSPs customer context, with capabilities in enormous time-to-market advantage.
technologies such as 5G, cloud, software-defined networking 6. Our decades of experience in serving in the IT business,
and network functions virtualization, AI, IoT, blockchain, proven track record of delivery excellence and
cybersecurity and a digital workplace in order to focus on new satisfied customers who recommend our services to
ways of working. We enable the convergence of network, IT and other corporations.
business processes across the entire customer lifecycle. Our
7. Our ability to provide an entire range of research
investments in new-age start-ups through Wipro Ventures,
and development services from concept to product
along with a comprehensive partner ecosystem are enabling
realization.
CSPs globally to create services that enable new revenue
opportunities, build business agility and reduce their time to 8. Our global delivery model, that leverages our global,
market in Business-to-Consumer and Business-to-Business regional and local near-shore development centers and
environments. Our focus on continuous improvement, alignment collaborative technologies to help us better serve our
to industry standards, investments in the technology solutions clients in this modern technology era.
of tomorrow, especially as we gear up for the 5G revolution, 9. Our ability to access, attract and retain highly skilled
deliver proven business value to global CSP customers. personnel across key markets.
10. Our emphasis on engaging the culture of our new age
IT Services Competition acquisitions and integrating these technologies with our
The market for IT services is competitive and rapidly changing. executional experience and service offerings to maximize
Our competitors in this market include global consulting synergies for our clients.
firms and IT services companies as well as local and niche 11. Our ability to offer opportunities to work with cutting
services providers. edge technologies and focus on training is a critical
differentiator to the quality of our manpower.
The following factors differentiate us from our competition:
12. The Wipro brand that is recognized globally for its
1. The comprehensive and integrated suite of IT solutions, comprehensive portfolio of services, a practitioner’s
including digital strategy advisory, customer-centric approach to delivering innovation and an organization-
design, technology consulting, IT consulting, custom wide commitment to sustainability.
application design, development, re-engineering 13. Our commitment to the highest levels of corporate
and maintenance, systems integration, package governance.
implementation, global infrastructure services, cloud,
mobility and analytics services, business process
services, research and development and hardware and
IT Products
software design. We provide IT products as a complement to our IT services
offerings rather than sell standalone IT products.
2. Crowdsourcing (Topcoder): A community and
crowdsourcing platform with over one million developers,
designers, data scientists and testers. Topcoder provides
IT Products Customers
focused enterprise offerings around AI/ML and analytics, We provide our offerings to enterprises in all major industries,
DX, QaaS, workforce transformation, TaaS and hybrid primarily in the India market, including government,
(certified) communities. defense, IT and IT-enabled services, telecommunications,
manufacturing, utilities, education and financial services (more than 51%), in turn hold more than 51% stake of paid-up
sectors. We have a diverse range of customers. For the year capital in other entities (i.e., a controlling stake), such other
ended March 31, 2020, we had one customer that accounted entities are also classified as an ISRE.
for 21.9% of our overall IT Products segment revenue.
We have pivoted our ISRE strategy to focus more on consulting
and digital engagements and to be selective in bidding for SI
IT Products Sales and Marketing projects with long working capital cycles.
We are value-added resellers of third-party enterprise
products through our direct sales force. Our sales teams We will be leveraging our strong practices in areas such
are organized by industry vertical. Our global client partners as taxation and e-governance, oil and gas and utilities,
receive support from our corporate marketing team to assist along with our strong partner system, to work with Indian
in brand building and other corporate level marketing efforts government entities, Public Sector Undertakings and other
for various market segments. large companies classified as ISREs. For BFSI projects in our
ISRE segment, we aim to replicate our successes in areas
such as core banking transformation, and consulting.
IT Products Competition
Our competitors in the IT Products market include global ISRE Customers
system integrators as well as local and niche services We have customers across the GoI, Indian State Governments
providers operating in specific geographies like India. One and in industry segments such as BFSI and ENU in the form
of the major challenges we encounter is margin pressure of corporate entities where more than 51% of the paid-
due to competitive pricing. Achieving mindshare and market up capital is held by the Central and/or State governments
share in a crowded market place requires differentiated of India. We work with multiple ISRE customers and our
strategies on pricing, branding, delivery and products design. top two ISRE customers contributed approximately 27%
In the system integration market, we believe we are favorably of our ISRE revenues for the year ended March 31, 2020.
positioned based on our brand, quality leadership, expertise Our largest ISRE customer and second largest ISRE
in target markets and our ability to create customer loyalty customer accounted for 15.9% and 11.1%, respectively,
by delivering value to our customers. The following factors of our overall ISRE segment revenue for the year ended
differentiate us from our competition: March 31, 2020.
1. Our decades of experience in serving in the IT business, ISRE Sales and Marketing
a proven track record of delivery excellence and satisfied
Our ISRE business unit will focus on the unique customer
customers who recommend our services to other
requirements and will create a “Go To Market” (“GTM”)
corporations.
approach that will address the needs of the present as well
2. Our deep understanding of the market especially in as future.
the India
ISRE Competition
3. Our trusted ability to provide impartial advice on selection
of products. In the ISRE sector, our competition comes from both local and
global IT services companies, including large global consulting
4. The Wipro brand is recognized for serving the Indian market
firms. For the GoI segment, several small companies have
for over seventy years.
entered the market as disruptors, with most of these small
5. Our commitment to environmental sustainability as well as companies focused on penetration strategy.
deep engagement with communities.
The following factors differentiate us from our competition:
1. Our deep technology knowledge and domain expertise
ISRE specifically in BFSI and ENU.
The ISRE segment consists of IT Services offerings to
2. Our strong partnership with key alliance partners
departments or ministries of the GoI and/or the Indian State
including hardware and software partners.
Governments, as well as to corporate entities where more
than 51% of the paid-up capital is held by the GoI or any 3. Significant experience in successfully delivering key
Indian State Government, either individually or jointly (i.e., marquee programs and strong reference ability across
a “Public Sector Undertaking”). In certain cases, corporate the ISRE sector.
entities which are held by the Central / State Government
35 Wipro Limited
Good Governance and Management Practices
Corporate governance
At Wipro, Corporate Governance is more than just adherence Governance by Management Process
to the statutory and regulatory requirements. It is equally
Ensuring regulatory compliance and adherence to standards
about focusing on voluntary practices that underlie the
is of utmost importance to Wipro. Wipro has a compliance
highest levels of transparency and propriety. Our Corporate framework and the objective of this framework is to deploy
Governance philosophy is put into practice at Wipro through appropriate practices and processes to ensure compliance
the following four functional layers, namely, with all applicable laws and regulations, globally and to
ensure compliance risks are identified, and adequately
Governance by Shareholders mitigated. The Compliance framework includes the Global
Governance by Board of Directors Statutory Compliance Policy and Certification Process as
approved by the Audit Committee and Board of Wipro Limited.
Governance Audit, Risk and Compliance Committee,
Electronic dashboards, self-declaration checklists on
by Sub- which also acts as Risk Management
statutory obligations and audits are some of the mechanisms
Committees Committee to monitor and manage compliance in Wipro.
of Board of Board Governance, Nomination and
Directors Compensation Committee, which also The Risk Steering Council and Risk and Governance
acts as CSR Committee committee, meet on monthly & quarterly basis respectively,
to review key risk themes and provide direction and oversight,
Strategy Committee to the risk management process.
Administrative, Shareholders and
Investors Grievance Committee Governance by Code of Business Conduct
(Stakeholders Relationship Committee) Wipro has an organization wide Code of Business Conduct
Governance by Risk Management which reflects general principles to guide employees in
Management Code of Business Conduct making ethical decisions. The Code outlines fundamental
Process ethical considerations as well as specific considerations that
Compliance Framework
need to be maintained for professional conduct. More details
The Ombuds process are provided in the Corporate Governance report.
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Government Treasury Governance Audit Committee
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37 Wipro Limited
Major risks Mitigation plan
Regulatory Compliances covering various federal, state, local A program on statutory compliance is in place with the
and foreign laws relating to various aspects of the business objective to track all applicable regulations, the obligation
operations are complex and non- compliances can result in arising out of the same and corresponding action items that
substantial fines, sanctions etc. requires to be adhered to ensure compliance along with
necessary workflows enabled. The program is monitored and
regularly reviewed to ensure compliance.
Functional and Operational risks arising out of various Appropriate risk and control matrices have been designed
operational processes. for all critical business processes and both design and
effectiveness is tested under the SOX & Internal Financial
Control Programs and theme based assessments.
Service Delivery risks relating to complex programs providing Risk Management framework has been deployed for
end-to-end business solutions for our clients. large value deals to assess solution fitness, credit risks,
financial risks, technology risks among other risk factors.
Additionally contract compliance programs are in place with
regular reviews, early warning systems as well as customer
satisfaction surveys to assess the effectiveness of the service
delivery and early detection of any risks arising from the
service delivery.
Work place environment, Safety and Security Strong Control measures have been put in place to ensure
employee health and safety. Awareness is created about
various issues and are communicated on regular basis to
employees. Wipro maintains Zero Tolerance for violators of
code of business conduct. Also employees are provided with
an online web portal to log in concerns relating to various
subjects including environment and safety in the work place.
Business Continuity risks arising out of climate change related Effective implementation of Business Continuity Management
and other disruptions like natural disasters, IT outages, Cyber, System (BCMS) and framework aligned to ISO 22301 across
pandemic, terror and unrest, power, water and other resource global locations, accounts and service functions. The
disruptions etc. which may challenge or impact our customers framework will ensure a robust BCM planning to manage any
business and availability of People and process, Technology crisis which could disrupt People and process, Technology and
and Infrastructure. Facility level disruption effectively and efficiently.
Geo political risk arising out of entering into contracts in a An assessment of doing business in a new country is done
new country. in order to analyze the feasibility of doing business based on
the country’s economic stability, corruption index, investment
opportunities, ease of doing business and physical safety.
Risk of Protectionism policies impacting the business Appropriate measures are being taken to provide uninterrupted
high quality services to the clients at all geographies.
Additionally, localization efforts are being prioritized. More than
69% of the USA workforce is local. In Latin America almost all
our employees are local.
Materiality Determination
& Stakeholder engagement
At Wipro, stakeholder engagement1 is an ongoing process.
Stakeholders identification is based on attributes such as
Impact, Influence, Interest, Legitimacy, Urgency and Diverse
Perspective. These attributes help identify stakeholders
across value chain that are important to business and
necessitates meaningful engagement. Based on these
attributes, we identified eight stakeholder groups -
Employees, Customer, Investors, Suppliers, Education
System, Communities & civil societies, Government
and Policy Networks and The Young Citizen and Future
Generation. We believe stakeholder inclusiveness is
central to the materiality determination process and it
is important to consider reasonable expectations and
interests of stakeholders so as to provide a balanced
view of the issues that emerge.
39 Wipro Limited
Corporate Overview | Management & Board Reports | Financial Statements
Inputs
Intellectual Capital
R&D Investment
ACTIVITIES
Financial Capital Providing Consulting
Funds available through Influencers and IT services in
its business operations,
financing and investing External Environment 7 verticals/domains
activities
across 6 continents
Outputs
Stakeholder Engagement Intellectual
Capital
Social & Human Materiality No. of patents filled and
granted, No. of people
Relationship Capital Capital trained in new skills
Customers, communities,
Workforce Risks & Opportunities
Investors, Suppliers
competencies Financial Capital
& Skills Gross Profit, Operating Income,
Finance and Other Income,
Income Tax Paid
Natural Capital
Natural resources like Strategy Pillars Natural Capital
Emission, Water & Energy
water, fuel, air, land Business Transformation savings, Biodiversity projects
biodiversity
ENABLERS Modernization in Campus, Advocacy on
Ecological issues
Talent Connected
IP & Platform Intelligence
Open Trust
Innovation
Social & Relationship Capital Human Capital
Customer Satisfaction Scores Productivity &
Profit attributable to equity holders, Retention
Beneficiaries from community
projects, Environment footprint
reduction in Supply Chain
Financial Capital
43 Wipro Limited
Results of operations for the years General and Administrative expenses: Our general and
administrative expenses as a percentage of revenue decreased
ended March 31, 2020 from 6.1% for the year ended March 31, 2019 to 4.9% for
Revenue: Our revenue increased by 4.1%. the year ended March 31, 2020. In absolute terms, general
The IT Services segment revenue increased by 4.5%. The revenue and administrative expenses decreased by 17.0%, primarily
of all our industry verticals, except for TECH, grew during the year. due to charges paid against a one-time settlement of a
The growth was led by three of our industry verticals, BFSI, CBU legal claim against the company included in the year ended
and ENU. The growth in these industry verticals was a result of March 31, 2019. These decreases have been partially offset
increase in our differentiated offerings across our geographic by the increase in legal and professional fees and travel in the
and digital capabilities, as well as the depreciation of the Indian year ended March 31, 2020 as compared to the year ended
Rupee against foreign currencies, including the U.S. Dollar, Euro, March 31, 2019.
United Kingdom Pound Sterling and Canadian Dollar. Growth
was partially offset by a decline in revenues due to the sale Other Operating income: During the year ended March 31,
of our hosted data center business, divestment of Workday 2020, we recorded (a) `992 million toward change in fair
and Cornerstone OnDemand business to Alight Solutions value of the callable units upon partial achievement of first
LLC, and the negative impact of COVID-19 on our revenues by and second year’s business targets pertaining to sale of
an estimated `1,055 million to `1,206 million ($14 million to data center business, and (b) `152 million toward gain on
$16 million). sale of assets pertaining to the Workday and Cornerstone
OnDemand business in Portugal, France and Sweden, as
Revenue of the IT Products segment declined by 10.6%, which “Other operating income.”
was primarily due to our focus on providing IT products as a
complement to our IT services offerings rather than selling As a result of the foregoing factors, our operating income
standalone IT products and our change in strategy to focus on increased by 5.8%, from `99,910 million for the year ended
consulting and digital engagements with ISRE clients rather March 31, 2019 to `105,730 million for the year ended
than SI engagements. March 31, 2020. As a result of the above, our results from
operating activities as a percentage of revenue (operating
Revenue of the ISRE segment declined by 1.7%, which was margin) increased by 0.4% from 16.8% to 17.2%.
primarily due to scaling down of large engagements as we are
pivoting our ISRE strategy to focus on consulting and digital Finance expenses: Our finance expenses decreased
engagements and to be selective in bidding for SI projects. from `7,375 million for the year ended March 31, 2019 to
`7,328 million for the year ended March 31, 2020. This
Profitability: In absolute terms, cost of revenues increased by decrease is primarily due to a decrease in interest expenses
5.6% primarily because of increase in employee compensation on repayment of loan during the year ended March 31,
due to the impact of salary increases, increase in headcount 2020, which was partially offset by an increase in interest
during the year and depreciation of the Indian Rupee against expense on adoption of IFRS 16. Refer to Notes 3(viii) and
foreign currencies, including the U.S. Dollar, Euro, United New Accounting Standards adopted by the Company in the
Kingdom Pound Sterling and Canadian Dollar. This was Notes to the Consolidated Financial Statements for further
partially offset by a reduction in sub-contracting/technical information on the adoption of IFRS 16.
fees and a reduction in the cost of hardware and software. As a
result of the foregoing factors, our gross profit as a percentage Finance and other income: Our finance and other income
of our total revenue decreased by 0.8%. increased from `22,923 million for the year ended March 31,
2019 to `24,081 million for the year ended March 31, 2020.
Selling and Marketing expenses : Our selling and marketing
The increase is primarily due to an increase in interest income
expenses as a percentage of total revenue decreased from
by `1,503 million during the year ended March 31, 2020 as
7.6% for the year ended March 31, 2019 to 7.0% for the year
compared to the year ended March 31, 2019.
ended March 31, 2020. In absolute terms, selling and marketing
expenses decreased by 3.6% primarily because in the year ended Income taxes: Our income taxes decreased by `443 million
March 31, 2019, there was an impairment charge on certain from `25,242 million for the year ended March 31, 2019
intangibles assets recognized on acquisitions. This decrease to `24,799 million for the year ended March 31, 2020. Our
has been partially offset by the increase in travel expenses in effective tax rate has decreased from 21.9% for the year
the year ended March 31, 2020 as compared to the year ended ended March 31, 2019 to 20.2% for the year ended March 31,
March 31, 2019
2020. This decrease is primarily due to changes in Indian tax As a result of the foregoing factors, our profit attributable
laws during the year ended March 31, 2020. to equity holders increased by `7,187 million or 8.0%, from
`90,031 million for the year ended March 31, 2019 to `97,218
Profit attributable to non-controlling interest: It has million for the year ended March 31, 2020.
increased from `142 million for the year ended March 31,
2019 to `495 million for the year ended March 31, 2020.
IT Services financials
Performance Highlights- IT Services (Figures in ` million except otherwise stated)
IT Services FY 2019 FY 2020 YoY Change
Revenues1 568,253 594,041 4.5%
Gross Profit 178,056 178,788 0.4%
Selling and Marketing expenses (44,207) (42,412) (4.1)%
General and administrative expenses (35,690) (29,835) (16.4)%
Other Operating Income 4,344 1,144 (73.7)%
Operating Income2 102,503 107,685 5.1%
As a Percentage of Revenue
Gross Margin3 31.1% 30.0% (1.1)%
Selling and marketing expenses 7.8% 7.1% (0.7)%
General and administrative expenses 6.3% 5.0% (1.3)%
Operating Margin 3
17.9% 18.1% 0.2%
For the purpose of segment reporting, we have included the impact of exchange rate fluctuations amounting to `3,208 million and `3,232 million for the years
1
ended March 31, 2019 and 2020, respectively, in revenue. Further, finance income on deferred consideration earned under multi-year payment terms in certain total
outsourcing contracts is included in the revenue of the respective segment and is eliminated under reconciling items.
Includes Other Operating Income, which is being included to present the effect from the sale of hosted data center business and Workday and Cornerstone OnDemand
2
business, in the year ended March 31, 2019 and, in the year ended March 31, 2020.
Gross margin and segment results as a percentage of revenue have been calculated by including Other Operating Income with Segment Revenue.
3
Revenue: The IT Services segment revenue increased by salary increases, increase in headcount during the year and
4.5%. Revenue for all our industry verticals, except for TECH, depreciation of the Indian Rupee against foreign currencies,
grew during the year ended March 31, 2020. The growth was including the U.S. Dollar, Euro, United Kingdom Pound Sterling
led by three of our industry verticals, BFSI, CBU and ENU. The and Canadian Dollar. This was partially offset by a reduction
growth in these industry verticals was a result of increasing in sub-contracting/technical fees.
our differentiated offerings across our geographic and digital
capabilities, as well as depreciation of the Indian Rupee Selling and marketing expenses: Selling and marketing
against foreign currencies, including the U.S. Dollar, Euro, expenses as a percentage of revenue from our IT Services
United Kingdom Pound Sterling and Canadian Dollar. Growth segment decreased from 7.8% for the year ended March 31,
was partially offset by a decline in revenues due to the sale 2019 to 7.1% for the year ended March 31, 2020. In absolute
of our hosted data center business, divestment of Workday terms, selling and marketing expenses decreased by `1,795
and Cornerstone On Demand business to Alight Solutions million primarily because of an impairment charge on certain
LLC and the negative impact of COVID-19 on our revenues by intangibles assets recognized on acquisitions in the year
an estimated `1,055 million to `1,206 million ($14 million to- ended March 31, 2019. This decrease has been offset by the
$16 million). increase in travel expense in the year ended March 31, 2020
as compared to the year ended March 31, 2019.
Profitability: Our gross profit as a percentage of our revenue
from our IT Services segment decreased by 1.1%, primarily General and administrative expenses: General and
because of increases in employee compensation due to administrative expenses as a percentage of revenue from our
45 Wipro Limited
IT Services segment decreased from 6.3% for the year ended • Deferment of annual increases in salary and progression
March 31, 2019 to 5.0% for the year ended March 31, 2020. cycles; and
In absolute terms, general and administrative expenses • Optimization of our variable workforce (i.e., sub-
decreased by `5,855 million, primarily due to charges paid contractors), including replacing them with our existing
against a one-time settlement of a legal claim against the internal pool of talent.
company in the year ended March 31, 2019. This was offset Customer Size Distribution Number of clients in Year
by an increase in legal and professional fees. for IT Services ended March 31,
2019 2020
Other Operating Income: During the year ended March 31,
2020, we recorded (a) `992 million toward change in fair > $1M 571 574
value of the callable units upon partial achievement of first > $3M 339 341
and second year’s business targets pertaining to sale of > $5M 262 260
data center business, and (b) `152 million toward gain on
> $10M 172 166
sale of assets pertaining to the Workday and Cornerstone
OnDemand business in Portugal, France and Sweden, as > $20M 96 96
“Other operating income”. > $50M 41 40
> $75M 22 22
As a result of the above, segment results as a percentage of
our revenue from our IT Services segment increased by 0.2% , > $100M 10 15
from 17.9% to 18.1%. In absolute terms, the segment results
Performance against guidance: Historically, we have followed
of our IT Services segment increased by 5.1%.
a practice of providing constant currency revenue guidance
In response to COVID-19, we are focusing on various cost for our largest business segment, namely, IT Services in dollar
optimization initiatives, including: terms. The guidance is provided at the release of every quarterly
• Re-skilling and re-deployment of our workforce from our earnings when revenue outlook for the succeeding quarter
existing pool of talent, and new hiring will be done only for is shared. The following table presents the performance of IT
business-critical reasons; Services Revenue against outlook previously communicated
• Optimization of costs relating to travel, facilities and other for the eight quarters of FY 2020 and FY 2019. Our revenue
discretionary spends like marketing events; performance in all the quarters of FY 2019 and FY 2020 has
been within the guidance range.
IT Products
Our IT Products segment accounted for 2.1% and 1.8% of our revenue for the years ended March 31, 2019 and 2020, respectively, and
(1.0)% and (0.3)% of our operating income for each of the years ended March 31, 2019 and 2020, respectively.
Operating results of the IT Products segment are as follows:
(Figures in ` million except otherwise stated)
FY 2019 FY 2020
Revenue1 12,312 11,010
Gross Profit (255) 120
Selling and Marketing expenses (168) (274)
General and administrative expenses (623) (128)
Operating Income (1,047) (282)
As a Percentage of Revenue:
Gross Margin (2.1)% 1.1%
Selling and Marketing expenses 1.4% 2.5%
General and administrative expenses 5.1% 1.2%
Operating Margin (8.5)% (2.6)%
Revenue: Our revenue from the IT Products segment decreased Selling and marketing expenses: Selling and marketing
by 10.6%. The decline was primarily due to our focus on providing expenses as a percentage of revenue from our IT Products
IT products as a complement to our IT services offerings rather segment increased from 1.4% for the year ended March
than sell standalone IT products, and our adoption of a more 31, 2019 to 2.5% for the year ended March 31, 2020. In
selective approach in bidding for SI engagements. absolute terms, selling and marketing expenses increased by
`106 million.
Profitability: Our gross profit as a percentage of our IT Products
segment revenue increased by 3.2%, primarily because of General and administrative expenses: General and
optimization in cost of delivery in certain customer contracts administrative expenses as a percentage of revenue from our
and reduction in sub-contracting/technical fees. IT Products segment decreased from 5.1% for the year ended
March 31, 2019 to 1.2% for the year ended March 31, 2020. In
47 Wipro Limited
absolute terms, general and administrative expenses decreased As a result of the above, in absolute terms, segment results of
by `496 million primarily on account of decreases in lifetime our IT Products segment recorded a loss of `282 million for the
expected credit loss. year ended March 31, 2020 as compared to segment loss of
`1047 million for the year ended March 31, 2019.
ISRE
Our ISRE segment accounted for 1.5% and 1.4% of our revenue for the years ended March 31, 2019 and 2020, respectively, and (1.8)%
and (1.7)% of our operating income for each of the years ended March 31, 2019 and 2020, respectively.
Operating results of the ISRE segment are as follows:
(Figures in ` million except otherwise stated)
FY 2019 FY 2020
Revenue1 8,544 8,400
Gross Profit (1382) (1060)
Selling and Marketing expenses (294) (368)
General and administrative expenses (153) (394)
Operating Income (1,829) (1,822)
As a Percentage of Revenue:
Gross Margin (16.2)% (12.6)%
Selling and Marketing expenses 3.4% 4.4%
General and administrative expenses 1.8% 4.7%
Operating Margin (21.4)% (21.7)%
1
Finance income on deferred consideration earned under multi-year payment terms in certain total outsourcing contracts is included in the revenue of the
respective segment and is eliminated under reconciling items.
Revenue: Our revenue from the ISRE segment decreased expenses increased by `74 million, primarily due to increase
by 1.7%. This was primarily due to scaling down of large in employee compensation.
engagements and pivoting our ISRE strategy to focus on
General and administrative expenses: General and
consulting and digital engagements and to be selective in
administrative expenses as a percentage of revenue from our
bidding for SI projects.
ISRE segment increased from 1.8% for the year ended March
Profitability: Our gross profit as a percentage of our ISRE 31, 2019 to 4.7% for the year ended March 31, 2020. In absolute
segment revenue increased by 3.6%, primarily on account of terms, general and administrative expenses increased by
closure of loss-making engagements. `241 million. This was primarily on account of increase in
lifetime expected credit loss.
Selling and marketing expenses: Selling and
marketing expenses as a percentage of revenue from As a result of the above, in absolute terms, segment results of
our ISRE segment increased from 3.4% for the year our ISRE segment recorded a loss of `1,822 million for the year
ended March 31, 2019 to 4.4% for the year ended ended March 31, 2020 as compared to a loss of `1,829 million
March 31, 2020. In absolute terms, selling and marketing for the year ended March 31, 2019.
As of March 31, 2020, we had cash and cash equivalent and As discussed above, cash generated from operations is our
short-term investments of `334,134 million. Cash and cash primary source of liquidity. We believe that our cash and
equivalent and short-term investments, net of total debt, was cash equivalents along with cash generated from operations
`256,092 million. will be sufficient to meet our working capital requirements
as well as repayment obligations with respect to debt and
In addition, we have unutilized credit lines of `45,404 million. borrowings. Our choices of sources of funding will be driven
To utilize these lines of credit, we require the consent of the with the objective of maintaining an optimal capital structure.
lender and compliance with certain financial covenants. We COVID-19 may have an impact on our cash conversion cycle due
have historically financed our working capital and capital to delays in customer payments and may result in increased
expenditures through our operating cash flows and through working capital requirements. However, we believe that we
bank debt, as required. have sufficient cash balances to overcome the incremental
increase in working capital requirements.
Cash generated by operating activities for the year ended
March 31, 2020 decreased by `15,673 million while profit for As of March 31, 2020, we had contractual commitments
the year increased by `7,540 million during the same period. of `14,011 million ($185.8 million) related to capital
The decrease in cash generated by operating activities is expenditures on construction or expansion of software
primarily due to increased working capital requirements. This development facilities and `17,024 million ($225.8 million)
was partially offset by income tax refunds for the previous year related to other purchase obligations. Plans to construct or
received during the year ended March 31, 2020. expand our software development facilities are determined
by our business requirements.
Cash generated from investing activities for the year
ended March 31, 2020 was `34,012 million. The cash We will rely on funds generated from operations and external
generated from sale of investments (net of purchases) debt to fund potential acquisitions and shareholder returns.
amounted to `34,579 million. Cash utilized for the payment We expect that our cash and cash equivalents, investments
for business acquisitions amounted to `10,003 million. We in liquid and short-term mutual funds and the cash flows
purchased property, plant and equipment amounting to expected to be generated from our operations in the future
`23,497 million which was primarily driven by the growth will generally be sufficient to fund the growth aspirations,
strategy of the Company as applicable.
Cash used in financing activities for the year ended March In the normal course of business, we transfer certain
31, 2020 was `150,998 million as against `49,369 million for accounts receivables and net investment in finance lease
the year ended March 31, 2019. This is primarily on account of (financial assets) to banks on a non-recourse basis. The
outflow for an equity share buyback amounting to `105,311 incremental impact of such transactions on our cash flow
million and increased outflow on account of partial repayment and liquidity for the years ended March 31, 2019 and 2020
of loans taken for acquisitions. Payment toward the dividend is not material. Please refer to Note 19 of our Notes to
including dividend distribution tax for the year ended March Consolidated Financial Statements.
31, 2020 amounted to `6,863 million. Dividends paid in the year As of March 31, 2019 and 2020, our cash and cash equivalents
ended March 31, 2020 represents interim (and final) dividend were primarily held in Indian Rupees, U.S. Dollars, United
declared for the year ended March 31, 2020 amounting to Kingdom Pound Sterling, Euros, and Australian Dollars.
`1 per share.
49 Wipro Limited
was interim dividend of `1. The Board recommended the The impact of COVID-19 remains uncertain and may be
adoption of the interim dividend of `1 per equity share as the different from what we have estimated as of the date of
final dividend for the year ended March 31, 2020. approval of these consolidated financial statements and
the Company will continue to closely monitor any material
Buyback of equity shares: During the year ended March 31, 2020,
changes to future economic conditions.
we concluded the buyback of 323,076,923 equity shares at a
price of `325 ($4.31) per equity share, as approved by the Board of Taxation Risks: Our profits for the period earned from providing
Directors on April 16, 2019 and by shareholders resolution dated services at client premises outside India are subject to tax in
June 1, 2019 passed through postal ballot and electronic voting. the country where we perform the work. Most of our taxes paid
This has resulted in a total cash outflow of `105,000 million in countries other than India can be applied as a credit against
($1,393 million). As a result of the buyback, our share capital has our Indian tax liability to the extent that the same income is
been reduced by `646 million ($8.57 million). subject to taxation in India. Currently, we benefit from certain
tax incentives under Indian tax laws. These tax incentives
Assessment of Key Risks include a tax holiday from payment of Indian corporate income
taxes for our businesses operating from specially designated
Global Economic and Geo Political Risks: We derive
Special Economic Zones (“SEZs”). Changes to these incentives
approximately 57% of our IT Services revenue from the
and other exemptions we receive due to government policies
Americas (including the United States) and 24% of our IT
can impact our financial performance.
Services revenue from Europe. If the economy in the Americas
or Europe continues to be volatile or conditions in the global Wage Pressure: Our wage costs in emerging markets have
financial market deteriorate, pricing for our services may historically been significantly lower than wage costs in the
become less attractive and our clients located in these developed markets for comparably skilled professionals, and
geographies may reduce or postpone their technology this has been one of our competitive advantages. However,
spending significantly. Reduction in spending on IT services wage increases in emerging markets may prevent us from
may lower the demand for our services and negatively affect sustaining this competitive advantage and may negatively
our revenues and profitability. Our clients are concentrated affect our profit margins. We may need to increase the levels
in certain key industries. Any significant decrease in the of our employee compensation more rapidly than in the past
growth of any one of these industries, or widespread changes to retain talent. Unless we are able to continue to increase
in any such industry, may reduce or alter the demand for our the efficiency and productivity of our employees over the long
services and adversely affect our revenue and profitability. term, wage increases may reduce our profit margins. The
inability to provide adequate wage increases may result in
Uncertainty relating to the global health pandemic on
attrition and impact competitiveness.
COVID-19: In assessing the recoverability of receivables
including unbilled receivables, contract assets and contract Components of Market Risks
costs, goodwill, intangible assets, and certain investments,
the Company has considered internal and external Foreign currency risk : We operate internationally and a major
information up to the date of approval of these financial portion of our business is transacted in several currencies.
statements including credit reports and economic forecasts. Consequently, the Company is exposed to foreign exchange
The Company has performed sensitivity analysis on the risk through receiving payment for sales and services in
assumptions used herein. Based on the current indicators of the United States and elsewhere, and making purchases
future economic conditions, the Company expects to recover from overseas suppliers in various foreign currencies. The
the carrying amount of these assets. exchange rate risk primarily arises from foreign exchange
revenue, receivables, cash balances, forecasted cash flows,
The Company basis its assessment believes that the payables and foreign currency loans and borrowings. A
probability of the occurrence of forecasted transactions is significant portion of our revenue is in U.S. Dollars, United
not impacted by COVID-19. The Company has also considered Kingdom Pound Sterling, Euros, Australian Dollars and
the effect of changes, if any, in both counterparty credit risk Canadian Dollars while a large portion of our costs are in
and own credit risk while assessing hedge effectiveness and Indian Rupees. The exchange rates between the rupee and
measuring hedge ineffectiveness and continues to believe these currencies have fluctuated significantly in recent years
that there is no impact on the effectiveness of its hedges. and may continue to fluctuate in the future. Appreciation of
the Indian Rupee against these currencies can adversely Counterparty risk: Counterparty risk encompasses issuer
affect our results of operations. risk on marketable securities, settlement risk on derivative
and money market contracts and credit risk on cash and time
We evaluate our exchange rate exposure arising from these deposits. Issuer risk is minimized by only buying securities in
transactions and enter into foreign currency derivative India which are at least AAA rated by Indian rating agencies.
instruments to mitigate such exposure. We follow established Settlement and credit risk is reduced by the policy of entering
risk management policies, including the use of derivatives into transactions with counterparties that are usually banks or
like foreign exchange forward/option contracts to hedge financial institutions with acceptable credit ratings. Exposure
forecasted cash flows denominated in foreign currency. to these risks are closely monitored and maintained within
predetermined parameters. There are limits on credit exposure
We have designated certain derivative instruments as cash
to any financial institution. The limits are regularly assessed
flow hedges to mitigate the foreign exchange exposure
and determined based upon credit analysis including financial
of forecasted highly probable cash flows. We have also
statements and capital adequacy ratio reviews.
designated foreign currency borrowings as hedges against
respective net investments in foreign operations. Liquidity risk: Liquidity risk is defined as the risk that we
will not be able to settle or meet our obligations on time or
As of March 31, 2020, a `1 increase in the spot exchange
at a reasonable price. Our corporate treasury department is
rate of the Indian rupee with the U.S. dollar would result
responsible for liquidity and funding as well as settlement
in approximately `1,972 million (Consolidated Statement
management. In addition, processes and policies related to
of Income `658 million and other comprehensive income
such risks are overseen by senior management. Management
`1,314 million) decrease in the fair value, and a `1 decrease
monitors the Company’s net liquidity position through rolling
would result in approximately `1,912 million (consolidated
forecasts on the basis of expected cash flows. As of March
statement of income `658 million and other comprehensive
31, 2020, our cash and cash equivalents are held with major
income `1,254 million) increase in the fair value of foreign
banks and financial institutions.
currency dollar denominated derivative instruments.
51 Wipro Limited
risk management policies, including the use of derivatives like Internal control systems and their adequacy
foreign exchange forward / option / future contracts to hedge
forecasted cash flows denominated in foreign currency. As We have presence across multiple countries, and a large
per the policy, the total hedges shall be 45% to 100% of the number of employees, suppliers and other partners
next four quarters of inflows in addition to select long term collaborate to provide solutions to our customer needs.
contracts which are beyond one year in tenor. Robust internal controls and scalable processes are
imperative to manage the global scale of operations.
We have designated certain derivative instruments as cash
flow hedges to mitigate the impact of foreign exchange The Management has laid down internal financial controls to
exposure on Profit and Loss account and forecasted highly be followed by the Company. We have adopted policies and
probable cash flows. We have also designated foreign procedures for ensuring the orderly and efficient conduct of
currency borrowings as hedges against respective net the business, including adherence to the Company’s policies,
investments in foreign operations. the safeguarding of its assets, the prevention and detection
of frauds and errors, the accuracy and completeness of the
Our Hedge Book as on March 31, 2020 stood at accounting records, and the timely preparation of reliable
$ 2.7 billion dollars. financial disclosures.
Key Ratios
Particulars FY 2019 FY 2020 YoY Change
Revenue in ` million (% terms) 589,060 613,401 4.1% F
IT Services Operating Margin (% terms) 17.9% 18.1% 0.2% F
Net Income Margin (% terms) 15.3% 15.8% 0.5% F
Earnings per share in ` (% terms) 14.99 16.67 11.2% F
Price Earning Ratio (times) 17.0 11.8 (0.3) A
Return on Networth (% terms) 17.0% 17.2% 0.2% F
Current Ratio (times) 2.7 2.4 (0.3) A
Debtors Turnover (times) 5.8 5.8 0.01 F
Free Cash Flow as % of Net Income (% terms) 106.0% 80.7% (25.3)% A
Debt-equity (times) 0.2 0.1 (0.03) F
Interest Coverage Ratio (times) 17.8 20.6 2.8 F
F - Favourable
A - Adverse
Human Capital a growth mindset. The Five Habits are Being Respectful,
Being Responsive, Always Communicating, Demonstrating
Stewardship and Building Trust. We believe in their combined
power to build our culture for tomorrow. Five Habits is a
movement at Wipro, championed by the Chairman and driven
by our leaders for all employees to embrace. The Five Habits
will be introduced in phases over 6 - 9 months. As part of
phase 1, we have completed immersive sessions with the
top 1000 leaders of our organization as we believe they can
spearhead and influence the change.
People Strategy
Our people strategies are geared towards creating an
employee experience through diverse learning opportunities,
great careers, a strong employer brand and an empowering
and inclusive culture. Our employees find meaning in what
they do while they create value for Wipro.
53 Wipro Limited
have been around Health and Safety Risk Assessment, · Inclusion and Diversity (I&D) – Our I&D charter focuses
all round safety and security measures including training on gender, persons with disabilities, the LGBTQ+
and sensitization to meet the standard competence community, nationalities, underprivileged communities
required by law in performing ones duties. All campuses and suppliers. Our definition goes beyond diversity
maintain a conducive work environment in line with of identities towards inclusion for all- embracing
Indian/International standards. A Food Safety Standards diversity of personalities, age, education, parenthood,
Authority of India (FSSAI) license is mandatory for vendors religion, function, skill etc. Across the spectrum, we
operating within Wipro owned locations in India. All our remain focused on building a plurality of ideas and on
facilities have safety committees, which meet quarterly elimination of unconscious bias. We firmly believe in
and participate in risk assessments, safety inspections, making Inclusion a “way of life” for each individual in the
incident investigations and hygiene audits. More than organization. Our values are the cornerstone of our I&D
4000 permanent and contract employees participated in practices. Further, I&D is a key agenda item in our Board
committees on safety, food, transport, etc. across India, reviews. Wipro’s key diversity initiatives include a focus
to represent the interests of the workforce. on returning mothers, support for parents, sensitisation
· Emotional Wellbeing: With our hectic lifestyles, employees and conversations, inclusion of Persons with Disabilities
sometimes need additional help and guidance for their and LGBTQ employees. In our continuous endeavour to
emotional wellbeing. Mitr is our employee counseling build an inclusive workplace, we inaugurated Mitti Caffe
and support forum in India. In geographies outside India, which is run by, Persons with Disabilities, at one of our
we have employee counseling services provided as a part campuses in Bengaluru.
of Employee Assistance Programs. • Freedom of Association – We respect the right of
· Financial Wellbeing: We continually strive to provide our employees to free association without fear of reprisal,
full-time and part-time employees with compensation discrimination, intimidation or harassment. Our employees
packages commensurate with their skills and experience are represented by formal employee representative groups
and in accordance with laws of the land. Our benefits in certain geographies including Continental Europe
program follow an integrated approach and provide a and Latin America which constitute about 2.7% of our
range of options for better financial and social security, workforce with a further 2.0% under collective bargaining
including efficient tax-management options, life and agreements.
accident insurance, medical packages and assistance • Human Rights & Values at Wipro Human Rights related
in managing financial issues. We started providing long- Polices and Commitment
term incentives by granting restricted stock units (RSUs) · Commitment to Human Rights: Wipro is committed to
in 2004 towards long-term retention of key talent. We protecting and respecting Human Rights and remedying
continue to drive a high-performance culture through our rights violations when identified. Providing equal
variable pay programs. Our management compensation employment opportunity, ensuring distributive, procedural
is now more closely aligned with organizational and interactional fairness, creating a harassment-free,
objectives and commitments, and significantly rewards safe environment and respecting fundamental rights
higher peformance. are some of the ways in which we ensure the same. Our
• Employee Experiences, Engagement and Communication: Code of Business Conduct (COBC), Supplier Code of
We have instituted several global initiatives and Conduct and Human Rights Policy are aligned to globally
communication channels to enable employee participation, accepted standards and frameworks like the U.N. Global
engagement and feedback. These include All Hands Compact, U.N. Universal Declaration of Human Rights
Meets, Yammer blogs and employee connects with senior and International Labour Organization’s Declaration
leadership, podcasts, collaborative platforms like MS on Fundamental Principles and Rights at Work (ILO
Teams, WebEx and more. Employee Experience Survey Declaration). They cover all employees, suppliers, clients,
is the formal mechanism to capture employee feedback, communities and countries across geographies where we
annually. We could not have the 2019-20 survey cycle do business. Wipro is also one of the founding members of
because of the COVID-19 lockdown. CII’s Business for Human Rights Initiative.
· Digitization and Talent Analytics: We continue to · Risk Identification Process: We have established
embrace the digital trend, transform our internal systems committees/processes to review progress and
and find ways to use digitization and talent analytics to formulate strategies to address issues pertaining to
drive business outcomes and employee experience. compliance, safety and a harassment-free workplace.
These processes are periodically reviewed by the top - Sensitization on Unconscious Bias: At present, over
management. We keep our employees informed about 1,28,000 employees have undertaken the Unconscious
these processes regularly through trainings, mailers and Bias E-module. Additionally, 140000+ employees have
internal social media platforms. been certified through the mandatory Online Assessment
· Identified Risks: Through various audits and feedback module of Prevention of Sexual Harassment.
we have identified the following as potential risks to
Human Rights:
People Results
-
Benefits and engagement of extended/contract We have a culture of transparent and voluntary reporting
workforce which include the Business Responsibility Report, the
- Unconscious bias at the workplace. Sustainability Report, the Dow Jones Sustainability Index,
Ethisphere Institute etc. This has strengthened our employer
· Mitigation Policies/Processes: We have created specific brand and our internal business processes helping to create
interventions to tackle these issues: differentiated people outcomes. Leaders who significantly
- Contract Employee Engagement: We engage contract influence human capital strategies of the organization are
employees for end user support and infrastructure measured on the performance of key indicators in this area.
support for our customers across India. The duration of The indicators provide insights into the effectiveness of
engagement varies depending upon the project and role. human capital strategies and are reviewed regularly both at
We have structured induction and eLearning modules organizational and individual business unit levels. The key
on Code of Business Conduct, Prevention of Sexual targets are:
Harassment (POSH) and Data privacy available to partner • Attrition – low to mid double digits with focus on retaining
employees. In addition, a Chatbot is provided to them to top talent
address any queries or doubts on policies and guidelines.
• Employee Experience Survey (EES) Score – We usually
As part of our Partner Engagement Program, we conduct
conduct our annual EES survey in March. We could not
periodic partner employee connects at account and
conduct the EES this year because of the COVID-19 crisis
region level across India where we address their concerns
and the challenges associated with it during this timeframe.
and queries, take feedback and provide career guidance.
SDG Alignment
Sustainable Development Goals (SDG) are the 17 global
goals for 2030 adopted by UN member states in 2015. The
goals provide a blueprint for peace and prosperity for people
and the planet. At Wipro, some of the key SDGs that our
programs map to are given below:
55 Wipro Limited
Intellectual Capital
customers, domains and technologies. Great Blue Heron’s
HaBBIT Framework is then leveraged to add the solution
to the portfolio. Through HaBBIT, the solutions can be
commercialized using any of the five ways – Harvest &
co-Innovate (Eg. CROAMIS, Pipe Sleuth), Build IP (Eg.
VirtuaDeskTM), Buy IP (Eg. Topcoder, Promax), Invest through
Wipro Ventures and Technology Themes & Big Bets.
Wipro has continued its investments in strengthening assets annotation, simulation and the navigation algorithms, social
like NetOxygen, Medicare Advantage, Health Plan Services, driving behavior, explainable AI, and other areas relevant
Promax and Topcoder. for autonomous vehicle operations. Wipro is also working
together with the National Institute of Design, on design
Co-Innovation and Open Innovation: Our Open Innovation aspects of these vehicles.
programs extend our innovation capabilities by coopting an
extended innovation ecosystem of startup partners, academia Research Areas and Solutions in Advanced Technology
and expert networks. During the year ended March 31, 2020, Areas: Topcoder, a Wipro Company, is the world’s largest
we expanded our academia research footprint by entering technology network and on-demand digital talent platform
into new research collaboration agreements with multiple with more than 1.5 million developers, designers, data
universities across the world. Today our research teams work scientists, and testers around the globe. Topcoder empowers
with the University of Texas at Austin, Tel Aviv University, organizations to leverage the flexibility of its key enterprise
Israel, Swinburne University, Melbourne, IIT Kharagpur, offerings around Enterprise Crowdsourcing (Design, QA, Dev,
IIT Madras, IISc Bangalore, University of Agricultural Data Science), Talent as a Service (TaaS), and Workforce
Sciences, Bangalore, among others where we cover AI, Transformation (Strategic Consulting).
NLP, encryption, 5G, Blockchain, autonomous vehicles, CV
and other critical new technologies. We were successful in Innovation Centres: Our innovation incubation centers,
incubating new innovative startup partners and in scaling the Technovation Center at Bengaluru and the Silicon
many existing relationships through joint engagements. We Valley Innovation Center in Mountain View, California, build
also did interesting work with select major consortiums and technology-led innovation to visualize the “art of the possible”
standards organizations that extend our views and influence in emerging business environments for our customers globally.
in the innovations being developed through their work. These Centers bring together an innovation ecosystem, a set
of best practices, IP and research and development resources
Our Robotics practice is developing smart factory solutions to help our clients develop successful initiatives and hosted
using robots, cobots, drones and other technologies that around 300+ customers and other visitors over the last year
will optimize production lines significantly.. We are digitizing and showcased our best technologies and solutions.
& orchestrating the process for few smart product lines
projects, using AI and generating rich analytics that should Patent Filings: Our R&D work has contributed to some
help reimagine production for the post-COVID normal. We significant patent applications during the FY in key
believe that these initiatives will enable the factory of the technology domains. As has been reported earlier we have
future. been investing in building a focused patent portfolio that
protects critical Wipro IP. As of FY20, we have a total of 2301
We have also worked on building capability in application patents filed in various Patent Jurisdictions across the world,
of 5G technologies. We are engaging with IIT Kharagpur of which 741 have been granted. Recognition of our work in IP
and University of Oulu on RF, New waveform and precision creation has come in the form of the prestigious Enterprise
localization tech. research for 5G and beyond. Trophy presented to us by the World Intellectual Property
Organization, as well as the National IP Award from the Govt.
AutoInsights, a connected vehicle and mobility platform, of India.
is a strategic investment from Wipro. Today this platform
is used across the globe by various Automotive OEM’s and Highlights for the year
its ecosystem players helping them maximizing a vehicle’s
lifetime value. Recently we have also signed a co-innovation • In the year ended March 31, 2020, Wipro filed 255 patents
agreement with a motorcycle OEM to customize AutoInsights and currently has approximately 741 registered patents
patented solution to build a very unique and industry-first and 1560 patent applications pending registrations in
dealership digitalization experience using connected bike various jurisdictions across the world.
data and voice-enabled smart helmet.
• Wipro won the “Asia IP Elite” award from the Intellectual
Wipro Autonomous Systems team in collaboration with Asset Management publication for the sixth consecutive
the Indian Institute of Science, focus on research in data year for best IP Practices
57 Wipro Limited
Social & Relationship Capital
companies like ourselves to deliver high quality service on
a global scale and at competitive costs. Our comprehensive
range of offerings integrate digital solutions through
innovative service delivery models and deep industry insights,
leveraging our intellectual capital.
Fast-evolving technology and societal landscapes, macro IT Security: Wipro’s IT infrastructure is certified under the
economic environments and the emergence of newer ISO 27001 standard which provides assurance in the areas
business models have created a need for enterprises to look of information security, physical security and business
for strategic partners to advise, design and execute their continuity. We benchmark our processes to meet the EU’s
technology transformation and support programs. Large General Data Protection Regulation (GDPR) and SOX IT
multinational enterprises are engaging global IT Services compliance requirements.
Data Privacy: Being a B2B business, Wipro does not collect, Wipro is an Equal Opportunity employer and strongly
store or monetize information pertaining to our customer’s advocates the same through its supply chain by encouraging
attributes or actions, including but not limited to, records of supplier diversity. Our engagement with suppliers focus on
communications, content of communications, demographic improving the capabilities of suppliers in managing their
data, behavioral data, location data, or any other personally sustainability performance. We have identified manpower
identifiable information. Therefore, our company does not service providers in civil, operations and support services
receive requests for customer information from government as being significant in terms of social impacts. Similarly,
or law enforcement agencies. providers of electricity, water, waste management and IT
Software and hardware and civil have large environmental
In April 2019, we became aware that our system was subject footprints and are therefore material to our strategy to reduce
to a cyber-attack by a coordinated and advanced phishing our environmental impact.
campaign, which was reportedly directed against several
major companies, including Wipro. Upon learning of this Summary of supplier sustainability engagement
incident, we collaborated with forensic firms to investigate Socio-economic Impacts: It is compulsory for all our
and have worked closely with our anti-virus provider and our vendors to acknowledge and accept the Wipro Supplier
information security team to counter the threat found in our Code of Conduct (SCOC). High Risk Vendors (HRV) identified
system and implemented a series of additional precautionary based on geography, nature of service and engagements
and containment measures across our systems. As per the where they interact with government on behalf of Wipro go
investigations, there is no evidence of data breach or data loss through additional checks and balances during processing
reported. In addition, we had commissioned an independent for key words like government payments, miscellaneous
assessment by a third party. The assessment has been expenses, commission, facilitation fee, gift, reward, out of
completed and the independent third party has confirmed pocket expense, etc. All HRV vendors are required to submit
that they found no evidence of any risk and also that the an anti-bribery anti- corruption questionnaire. We also have
remediation controls implemented by Wipro are effective. requirements of stricter negotiating threshold, clear break up
of costs and multiple quote regardless of the value.
Sustainability Related Aspects: We have 100+ of our
customers who are part of independent raters like CDP, Environmental Impacts: Based on natural capital valuation,
Ecovadis, and industry led consortiums (JAC, Quest) that in purchased goods and service category, we identified most
assess company’s performance on sustainability related of the impacts are concentrated down the value chain of
aspects like human rights, environment, supply chain, labor Wipro’s direct suppliers. Of the total impact across tiers,
practices, etc. tier 1 constitute 23%, tier 2 – 45% and rest is from tier 3
suppliers. We engage with tier 1 suppliers in improving their
Suppliers sustainability performance so that they are able to cascade
these practices down their supply chain.
The supplier ecosystem of Wipro can be broadly categorized
into two heads – the ‘primary supply chain’ by which we mean Summary of initiatives in IT products and services
extended workforce involved in core delivery of IT Services In 2019, we purchased more than 108,400+ EPEAT Gold and
and Solutions (refer the Human Capital section); and product over 590 EPEAT Silver and Bronze category products across
or services suppliers or ‘secondary supply chain’ who provide desktops, laptops, displays, imaging equipment and mobiles.
materials, equipment and end-products, business support In tangible terms, our procurement of EPEAT certified
services and facility management services for our operations. hardware translates into a saving of 25.9 million kWh of
energy over the lifetime of products.
Our Code of Business Conduct (COBC) and the Spirit of Wipro
values provide the ethical guidelines and expectations for Till date we have migrated 6300 users from traditional
conducting business and for directing Wipro’s relationship physical desktop to Virtual Desktop Infrastructure (VDI). This
with its suppliers. In addition to the COBC, the Supplier Code of has led to reduction in energy consumption, easier operations
Conduct (SCOC) of Wipro further strengthens and augments and cost saving.
the COBC with respect to environmental and social aspects.
It is compulsory for all our vendors to submit a signed copy of
Wipro COBC/Supplier Code of Conduct (SCOC).
59 Wipro Limited
Through proactive maintenance and upgrades, we have been Our Key programs in Education: Our work in education
able to reutilize 27% of the assets – desktops and laptops covers a range of initiatives in school and higher education in
post their scheduled end of life. India and overseas. The common vision that ties this together
is our belief that good education is a primary enabler of
During the reporting year, we saved 3 million papers in
change towards a better society.
printing and `2.3 million in cost due to duplex savings
through Managed Print Services Model - outcome-based
model where Wipro’s printing services are managed through
an independent third party.
Investors
Wipro’s endeavor is to not merely report true and fair
financial results in a timely manner but also communicate
the business outlook, risks and opportunities transparently
to the investor community. Increasingly, discerning investors
are interested in the longer-term strategy of the organization
and issues which are material to the industry. We deploy
multiple channels of communications to keep investors
informed about various development and events. In FY20 we
conducted 5 road shows and held 252 investors meetings &
calls; 11 conferences and 4 earning conference calls.
61 Wipro Limited
skills upgradation and social, nutritional and health security to
workers in the informal sector of waste.
International Chapters
Our employees across the world are keen and enthusiastic
participants in local community initiatives. In 2019, through
Sprit of Wipro (SoW) Run, more than 13,000 Wipro employees
from across the globe contributed for their local charities.
In North America, through First Book program +150 Wipro Humanitarian Support: Our focus is on the immediate
employees volunteered hundreds of hours and distributed provision of food, dry rations, water, basic medicines and safety
more than 13,000 books impacting more than 1,000 at- risk kits, etc. for the marginalized communities that are currently
and rural students. Other initiatives are disaster rehabilitation bearing the brunt of loss of livelihoods and jobs.
in Australia, biodiversity conservation in Spain, health care Healthcare Support: Our focus is on augmenting the
in Europe & US, food drives in Brazil & US and education for capacity of our healthcare system to respond effectively
disadvantaged children, particularly children with disabilities at scale, with the urgency the situation demands. We are
in Philippines. working with a network of partner organizations on a whole
range of interventions starting from the first line of defence
Our response to COVID-19 Pandemic like the supply of sanitizers, masks and other essentials, to
Wipro Enterprises Pvt Ltd has committed ` 100 crore towards supporting the build-up of capacity in our health systems -
tackling the unprecedented health and humanitarian crisis such as Personal Protection Equipment (PPEs), Testing Kits,
arising from the COVID-19 pandemic outbreak. Actions are Ventilators, Isolation Units etc. In parallel, we are also trying
being taken for a comprehensive on-the-ground response in to ensure that primary healthcare services continue to be
specific geographies, focused on immediate humanitarian available for the disadvantaged communities in the locations
aid, and, augmentation of healthcare capacity, including we operate in.
containing and treating those affected by the COVID-19 These responses are being carefully coordinated with relevant
outbreak. government institutions and will be executed in an integrated
manner by Wipro, Wipro Enterprises Pvt Ltd. and the Azim
Premji Foundation.
Natural Capital
responsibilities related to planning, execution, review,
evangelization and advocacy of the sustainability charter.
Strategic oversight of sustainability programs rest at the
corporate level with our Chairman, Board of Directors and
Group Executive Council. The goals and objectives are jointly
set with inputs from across functions. The quarterly reviews
are attended by the Chairman, Chief Strategy Officer, Chief
Financial Officer and Chief HR Officer apart from the Chief
Sustainability Officer and Head of Operations. We benchmark
our performance with our global peers through extensive
disclosures as well as a system of rigorous internal and
external audits.
Management Approach
At Wipro, we have identified Energy efficiency and Green House
Gases (GHG) mitigation, Water efficiency and Responsible Water
management, Pollution and Waste management, and Campus
Natural capital refers to the notion that Biodiversity as our most material issues and have developed
nature provides immense value that is critical programs around them
to human existence and therefore, any action Our Ecological Sustainability Policy, available at https://
that depletes natural capital is self-defeating www.wipro.com/content/dam/nexus/en/sustainability/pdf/
ecological-sustainability-policy.pdf forms the structural
for our society. Wipro’s approach to Natural framework for our environmental programs and management
Capital embraces the continuum of systems. We have been following the guidelines of the ISO
14001 framework for nearly two decades now as one of the
• Initiatives ‘within the organization’ that cornerstones of our Environmental Management System
focus on reducing the energy, water, waste (EMS). 20 of our campus sites in India and 8 in Australia are
and biodiversity footprint of our business certified to ISO 14001 and OHSAS 18001 standard. Other
campuses are benchmarked against the same standard as a
operations; and part of our internal review/audit process. We were one of the
• Engaging through partners on key external early adopters of Green Building Design. We strive to maintain
the same standards in the maintenance of our facilities. Our
programs in community ecology.
newer campus facilities are IGBC LEED certified. We also
63 Wipro Limited
GHG footprint including employee commute and business Finally, the study also illustrates how climate change induced
travel footprint. financial impacts to our global customers across sectors
could likely lead to contraction in their spends on IT services.
Environmental Risks For instance, business loss due to climate change induced
financial impacts to energy and utilities sector customers.
The Enterprise Risk Management and Sustainability Going forward we plan to incorporate the findings of the
functions at Wipro jointly oversee environmental and climate study into our BCP framework.
change related risk identification and mitigation. Impacts of
extreme weather events, urban water stress, air pollution, In the assessment of risks, climate change attribution is still
waste management and their impacts on employee health an evolving science. We recognize this fact when evaluating
and wellbeing are the most material issues we engaged with. climate risks to our business and the linked fact that such risk
assessment will be based on a number of best-fit assumptions.
Over the past year, we have undertaken a comprehensive The precautionary principle though requires that we recognize
Climate change Risk Assessment Program, encompassing these risk-outcomes formally and as rigorously as possible.
both physical and transitional risks, for our major operational Our endeavor going forward therefore will be to continually
locations across the globe, covering India (12 cities), China, refine and improve the methodology and approaches used in
Philippines, Germany, Romania, the UK and the US. This has climate risk assessment.
been carried out for two scenarios (based on the IPCC defined
RCP 4.5 and RCP 8.5) covering medium to long term (2030- Climate change related impact
2050) time frames.
Our risk assessment exercise is undertaken at both the
In both scenarios, we see an increased probability of higher company level and at the asset level. A well-defined Business
incidence of water stress, hot days and heat waves across Continuity Policy prescribes principles to plan for climatic
cities. For the coastal cities of Mumbai, Chennai, Kolkata disruptions which could disrupt business objectives. The
and Vizag we see a high probability of increased rainfall Corporate Business Continuity Team (CBCMT) governs and
events leading to urban flooding while there is the increased guides the standard risk assessment methodology at every
likelihood of adverse health impacts due to Air Pollution in location to identify risks which could potentially impact
the NCR region. The study has also been used to estimate continuity of business, financial parameters like revenue &
the extent to which we could witness reduction in employee profitability as well as reputational and legal parameters.
productivity and increase in absenteeism due to these This group collaborates with various support groups in the
physical risks. Other operational impacts include those on organization to assess risks for human resources, facilities
account of changing regulations in the areas of renewable & IT infrastructure with identified impacts, probability/
energy, carbon taxes, green buildings, water management likelihood & controls in place. A severity matrix of Low, Medium
and a shift away from fossil fuel based transport. & High impacts is defined and a defined crisis management
group is vested with the responsibility to respond, recover,
Outside India, we see increased physical climate risks for resume, return & restore from these situations. The detailed
our operations in Philippines, China, Romania and the U.S climate modeling and impact assessment exercise will help
due to floods and cyclones and while Germany and U.K are in further calibrating our risk management program.
primarily exposed to transitional risks due to policy and
regulatory changes. Energy efficiency & GHG
Based on a health survey carried out as part of the study mitigation
with employees, we see emerging linkages to heat- induced
Targets: We have set Science Based Targets for Scope 1,
health issues as well as seasonal vector borne diseases.
Scope 2 and Scope 3 till 2030 that are based on the well
These adverse heat impacts are likely to increase in the
below 2 degree temperature goal. Further, work on aligning
future, particularly in cities of Delhi, Noida, Mumbai and
our targets with 1.5 degree temperature goals is in progress.
Vishakhapatnam which are likely to see an increase in extreme
heat conditions. Furthermore, the impacts of vector-borne Considering 2017 as the base year, we have set medium-term
diseases could become more severe in the cities of Chennai, targets till 2022 and 2030 and longer-term targets till 2040
Mumbai, and Kolkata, where we are likely to see increase and 2050. The following goals have been set for the period FY
in rainfall and urban flooding. These impacts may again 2017 to FY 2022:
contribute to a decrease in the productivity of our employees.
a. Emissions reduction of 14% in absolute Scope 1 and 2 For India operations, about 84.5 million units constituted
GHG emissions renewable energy procured through PPAs (Power Purchase
b. Energy Intensity in terms of EPI (Energy Performance Index) agreements) with private producers. Of this 73.6 million units is
- Cumulative reduction of 7.8% in EPI over 5 years with green attributes (zero emissions). Another 10.8 million units
c. GHG Emission Intensity (Scope 1 and Scope 2) on Floor is from renewable resources for our downstream leased space.
Area (FAR) basis - Cumulative reduction of 16 % in GHG Energy Intensity: EPI for owned office spaces, measured
intensity from 117 Kg CO2 eq./ Sq. Mt. (kgpsm) to 98 in terms of energy per unit area has been nearly flat at 144
kgpsm of CO2 –eq KwH units per sq. meter per annum. The absolute energy has
d. Renewable Energy (RE)- Increase renewable energy marginally increased by 0.63% for the reporting year.
procurement by 55% to 120 million units
Scope 3 Emissions: Our total scope 3 emissions for FY2020
e. Absolute reduction of 10% in Scope 3 emissions for
is 421,526 tons of CO2 eq, which accounts for 75% of our total
Business Travel, Employee commute and Upstream fuel
footprint. Out of the 15 categories of scope 3 reporting as per
and energy related emissions.
the new GHG corporate value chain standard, we are currently
Performance Against Goals report on all of the 8 categories applicable to us. The table below
shows comparison for Business Travel, Employee Commute and
Absolute Emissions: The absolute Scope 1 and 2 emissions Upstream fuel and energy emission category for last three years
(India) for FY 2020 has increased by 17.6% from 117,290 to – these contribute to 50% of our overall emissions
137,930 tonnes. This is primarily for few reasons –reduction
in RE share by 22% for reasons mentioned later in this FY2018 315,254
section, with concomitant increase in grid electricity as well FY2019 273,638
as increase in share of diesel generated electricity by 9.5%.
FY2020 281,213
The dashboard below provides a summary of our Global and
India GHG emissions, including data centres. The figures are
Total Emissions: The overall emissions across all scopes
net emissions for all years, after considering zero emissions
is 559,456 tonnes. Within this, the main contributors to our
for renewable energy procured. GHG emissions are: Electricity – Purchased and Generated
GHG Scope 1 and 2 (Tons of CO2 Equiv.) (23.6%), upstream fuel and energy emissions (13%), Business
53,470 Travel (22.1%) and Employee Commute (15.1%). Leased office
FY2018 spaces contribute to 7.1% of emissions.
152,361
FY2019
4,208 GHG Mitigation Measures
113,082
Our five year GHG mitigation plan consists of three key
FY2020 2,458
elements – Energy Efficiency (Reduce), Renewable Energy
135,472
(RE) Purchase (Replace) and Travel Substitution (Reduce
Data Centers Office and Replace); of this, RE procurement will contribute the
Emissions Intensity: Our India office space emissions maximum, 80% share to GHG emission mitigation strategy
intensity (Scope 1 and Scope 2) is at 87.20 Kg CO2 eq. per for Scope 1 and 2.
Sq. Mt. per annum, up by 22% from FY 2019. Concomitantly the
Energy Efficiency: These measures include new retrofit
global people based emissions intensity has also increased by
technologies to improve Chiller and Air Handling Units (AHUs),
more than 9.8% to 0.932 tons per person per annum.
integrated design and monitoring platforms. The Global
Energy Consumption: The overall energy consumption Energy command centre aggregates Building Management
from Scope 1 and 2 boundaries (operational and financial System inputs on a common platform to optimize operational
control) is 915.3 million Mjoules, compared to 900.8 million control and improve energy efficiency.
Mjoules in the previous year, a marginal increase of 1.5%.
Since 2007, we have been working on a server rationalization
The total energy consumption, electricity and back-up diesel
and virtualization program, through which we have
generated, for office spaces in India is 223.7 million units
decommissioned old physical servers and replaced the
(including leased spaces globally this is 297 million units). processing capacity with virtualization technology on fewer
Data centers in India contribute to another 5.7 million units. numbers of servers. As of March 2020, we have 10155 virtual
65 Wipro Limited
servers (6750 in March 2019) running on 409 physical servers transition our global fleet to electric vehicles (EVs) by 2030.
which contributes to an energy savings of approximately 45.6 In the current year ,we launched the program in 4 more cities
million units in the reporting year. The savings showed an and clocked 3.4 Million Kms across 63,000 trips saving
increase of 53% over the previous year. Our current Virtual around 850 tons of CO2 eq.
Desktop Infrastructure (VDI) capacity is 8,000. VDI’s provide high
capacity scalable infrastructure with On Demand provisioning, Water efficiency and
High Availability and High Performance Computing
environment. Out of this, we have enabled 6,300 VDI’s across responsible use
two of our campuses. Thin clients consumes less energy
At Wipro, we view water from the inter-related lens of efficiency
(80% less) compared to Desktop, resulting in savings of 0.75
and conservation coupled with our role as a responsible
million units. Over a 5 year period, energy efficiency initiatives
citizen in engaging with urban water issues outside our own
have resulted in savings of 120 million units (based on per
boundaries. Our articulated goals are therefore derived from
capita consumption).
these dimensions.
RE procurement: For the reporting period of FY 2020, RE Water Efficiency:
purchase contributed to approximately 84.5 million units or 35% a. To improve water efficiency (fresh water use per employee)
of our total India energy consumption, out of which 11 million by 5% year on year
units is for downstream leased spaces. Our RE consumption
b. To reduce absolute water consumption in existing
this year has reduced due to external reasons like load shedding
campuses by 20% between FY 2016 and FY 2021 Water
and grid failure leading to less evacuation in few states.
Responsibility
Rooftop Solar and Captive RE: The rooftop Solar PV Water Responsibility: To ensure responsible water
installations at 6 of our campuses followed by extensive use management in proximate communities, especially in
of solar water heaters in our guest blocks and cafeterias have locations that are prone to water scarcity. We are also
resulted in equivalent savings of 1.57 million units of grid collaborating on building capacity and advocacy platforms at
electricity in the reporting year the city level for integrated urban water management.
Business Travel: The IT services outsourcing model requires Freshwater recycling and efficiency: The per employee water
frequent travel across the delivery life cycle to customer consumption for the reporting year is 930 litres per month as
locations, mainly overseas, and contributes to around 22% compared to 951 litres in FY 2018, an improvement of 2.2%.
of our overall emissions footprint. This includes travel by air, Freshwater consumption has seen an increase of 6.75% from
bus, train, local conveyance and hotel stays. We have seen last year to 1621 million litres essentially due to leakages
an increase in emissions by 5.1% as compared to FY2019 from aging underground pipeline network at two locations.
– though over the three year period between FY2017 and Real-time monitoring pilots are being implemented in two of
FY2020 we have reduced emissions by 9.8%. our campuses. Water free systems (where applicable), smart
metering, optimizing heating and cooling and recycling of blow
Employee Commute: Employees have various choices for down are other initiatives being explored. We have achieved
intra-city commuting. In addition to company arranged 12.5% reduction in absolute fresh water consumption from
transport (33%), employees owned cars & two wheelers FY 2016 .
contribute to 16% and public transport account for the We recycle 1,118 million litres of water in 27 of our major
balance 51%. Over a three year period (FY2017-FY20) our locations (vs 1,090 million litres in FY 2019) using Sewage
employee commute emissions reduced by 20.9%. Treatment Plants (STPs) and ultra-filtration units. Recycled
water represents 41% of our total water consumption. The
Over the past few years, we have taken steps to facilitate a shift
amount of recycled water as a percentage of freshwater
towards improved access to public transport for employees
extracted is around 70%. We have completed ultra-filtration
(buses, commuter trains) and carpooling. Our carpooling
and RO projects for STP treated water at three our large
initiative now has over 1 Lakh registered users across
locations. Of the total treated water (1090 million liters), 62% is
locations. Around 22.7 Million kms of rides were shared in the
used for flushing and 6% is used in cooling tower. The balance
reporting year saving 4900 tons of CO2 equivalent emissions,
32% is used mostly in our landscapes and for general cleaning
more than double from the previous reporting period.
– the quality is equivalent to freshwater (Less than TDS of
We became the first major Indian business to join EV100, a 1000). Our water recycling initiatives have cumulatively saved
global initiative by The Climate Group , in our commitment to 5190 million liters of water over a 5 year period.
Freshwater use-India Offices: b. Reducing materials impact through recycling and reuse
FY2018 1,514,703 c. Arranging for safe disposal of waste that goes outside our
1.005 organizational boundaries. To operationalize our strategy,
0.991 we segregate and monitor waste processing across 13
FY2019 1,518,934 broad categories and nearly 40 sub categories.
0.957
Total waste disposed during FY 2020 was 5,057 tons – a
0.951
reduction of 18.5% compared to the previous year. This is
FY2020 1,621,501 primarily due to reduction of construction and demolition (C&D)
1.044 debris, mixed metals and scrap and wood/lumber by around
0.930
870 tons due to completion of renovation work and initiatives to
Fresh water (KL)
reduce packaging waste.
Area intensity (KL per sq mt)
People intensity (KL pp per month) Our current recycling rate is 81% (excluding construction and
demolition debris). 84% of organic waste is recycled in house
Sourcing of Water: Our water is from four sources – private
and the balance sent as animal feed outside the campus.
water (mainly ground water sourced from tanker water
Close to 100% of the inorganic waste is recycled through
suppliers), municipal and industrial bodies supplied water,
approved partners. 70% of the total mixed solid waste and
in-situ ground water and harvested rain water – with the first
scrap is currently recycled and the rest sent to landfills. Our
two sources accounting for nearly 92% of the sourced water.
target is to improve this to 80% by 2021. Biomedical and
Water purchased from private sources is primarily extracted
hazardous waste is incinerated as per approved methods. All
from ground water. Not surprisingly, ground water contributes
our E-waste is currently recycled by approved vendors. Our
to nearly 60% of our total freshwater consumption across
effective safe disposal , excluding landfill, is hence 97%.
cities in India. Our urban/ peri-urban facilities located in three
states – Karnataka, Tamil Nadu and Telengana, are located in Waste Management Summary (Excluding C&D)
water stressed basins. The water supplied by the municipal
bodies is sourced primarily from river or lake systems. The
table below provides parentage of water sourced from
different freshwater sources during the reporting year.
Recycle - 81%
Landfill - 3 %
Other Methods - 10 %
Incineration - 6 %
67 Wipro Limited
Bengaluru. The wetland area now has 106 species of plants
across nine thematic areas– integrated across a walking trail
Bengaluru Sustainability
with engaging signages. Similarly the Pune project also has Forum (BSF)
more than 300+ native species across five thematic gardens – This forum was set up in early 2018 and convened by Wipro along
Aesthetic and palm garden, Spring garden, Ficus garden, Spice with the National Center for Biological Sciences. In the reporting
and Fruit garden.. In all these programs we work closely with year, the forum continued to participate in dialogues, facilitate
expert partners in biodiversity, conservation, ecological design conversations around a sustainable future and partner with
and communications. A work environment which integrates other institutions. In the year, we partnered with Science Gallery,
biodiverse and natural design principles has multiple Bengaluru on their first interactive exhibition “Submerge” at
intangible benefits for employees and visitors – it builds a Bangalore International Center and hosted 9 events in the city.
larger sense of connectedness and a perspective of our place We also partnered with Indo-Germany Energy Forum (IGEF) and
in the world around. We also have drafted a set of biodiversity the German Consulate General on ‘Energy Transition’ traveling
management guidelines for adoption across our campuses. exhibition. We extended our support to 8 new small grant
proposals in the areas of urban water, waste and biodiversity -
Urban Resilience with this we have supported 19 such projects till date.
Board’s Report
On behalf of the Board of Directors (the “Board”) of the On a consolidated basis, our sales increased to ` 610,232
Company, it gives me immense pleasure to present the million for the current year as against ` 585,845 million in the
74th Board’s Report, along with the Balance Sheet, Profit and previous year, recording an increase of 4.16%. Our net profits
Loss account and Cash Flow statements, for the financial increased to ` 97,718 million for the current year as against
year ended March 31, 2020. ` 90,179 million in the previous year, recording an increase
of 8.36%.
I. Financial Performance
On a standalone basis, our sales increased to ` 503,877
The standalone and consolidated financial statements for million for the current year as against ` 480,298 million in the
the financial year ended March 31, 2020, forming part of previous year, recording an increase of 4.91%. Our net profits
this Annual Report, have been prepared in accordance with increased to ` 86,807 million in the current year as against
the Indian Accounting Standards (Ind AS) as notified by the ` 76,140 million in the previous year, recording an increase
Ministry of Corporate Affairs. of 14.01%.
Key highlights of financial performance of your Company for the financial year 2019-20 are provided below:
(` in millions)
Standalone Consolidated
2019-20 2018-19 2019-20 2018-19
Sales 503,877 480,298 610,232 585,845
Other Operating Income 193 940 1,144 4,344
Other Income 24,766 25,686 27,250 26,138
Profit before Tax 110,077 98,705 122,519 115,422
Provision for Tax 23,270 22,565 24,801 25,243
Net profit for the year 86,807 76,140 97,718 90,179
Other comprehensive (loss)/income for the year (4,284) 1,246 4,257 800
Total comprehensive income for the year 82,523 77,386 101,975 90,979
Total comprehensive income for the period attributable to:
Minority Interest - - 653 251
Equity holders 82,523 77,386 101,322 90,728
Appropriations
Dividend 5,713 4,524 5,689 4,504
Corporate tax on dividend distribution 1,174 930 1,174 930
EPS *
- Basic 14.88 12.67 16.67 14.99
- Diluted 14.84 12.64 16.63 14.95
*
In FY 2019-20, EPS growth is higher than Net profit growth largely on account of reduction in number of equity shares due to buyback.
69
Wipro Limited
Dividend (` in millions)
Standalone Consolidated
Pursuant to Regulation 43A of the Securities and Exchange
Net profit for the year 86,807 97,223*
Board of India (Listing Obligations and Disclosure
Balance of Reserve at the
Requirements) Regulations, 2015, as amended (“Listing 481,852 552,158
beginning of the year
Regulations”), the Board has approved and adopted a
Adjustment on adoption of
Dividend Distribution Policy. The policy details various (414) (872)
Ind AS 116
considerations based on which the Board may recommend
Transfer to General Reserve - -
or declare Dividend, your Company’s dividend track record,
Balance of Reserve at the end of
usage of retained earnings for corporate actions, etc. 453,110 541,790
the year
The policy is available on the Company’s website at
https://www.wipro.com/investors/corporate-governance. * excluding non-controlling interest
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Annual Report 2019-20
Corporate Overview | Management & Board Reports | Financial Statements
During the financial year 2019-20, your Company has carried Your Company’s ISRE segment consists of IT Services
out restructuring of its following subsidiaries: offerings to organizations owned or controlled by the
Government of India and/or any Indian State Governments.
a) Dissolution of Wipro Retail UK Limited and Liquidation of
Your Company’s ISRE strategy focuses on consulting and
Appirio GmbH
digital engagements, and it is selective in bidding for SI
b) Merger of Frontworx Informationstechnologie GmbH with projects with long gestational periods.
and into Cellent GmbH
The COVID-19 pandemic has savaged human lives and
c) Merger of Digital Aps with and into Designit A/s
livelihood, presenting a magnitude of crisis that the modern
global society has not confronted. This will have a lasting
Particulars of Loans, Advances, Guarantees impact on the business environment which will cause
and Investments acceleration in adoption of technology, disruption in global
supply chains and several other changes to the global order.
Pursuant to Section 186 of the Companies Act, 2013
Your Company’s customers will evaluate whether their
and Schedule V of the Listing Regulations, disclosure on technology stack & business processes provide them the
particulars relating to Loans, Advances, Guarantees and necessary agility, adaptability and resilience. Need for social
Investments are provided as part of the financial statements. distancing and strenuous health protocols will be central to
any operating model and will be a key factor that will expedite
II. Business and Operations the adoption of automation, autonomous and low or no
human touch or contactless ways of working. Your Company
Your Company is a global information technology services sees a surge in demand in the near term for enterprise
firm, with employees across 55 countries and serving efficiency offerings such as cloud, virtual workplace, robotic
enterprise clients across various industries. Your Company process automation and cyber security services.
provides its clients with competitive advantages by applying
various emerging technologies and ensuring cyber resilience Further information on your Company’s IT services and
and cyber assurance. Your Company works with its clients products offerings, business strategy, operating segments
not only to enable their digital future, but also to drive overview and business model are presented as part
hyper efficiencies across their technology infrastructure, of the Management Discussion and Analysis report
applications and core operations, enabling them to achieve (“MD&A Report”) from page no. 26 onwards.
cost leadership in their businesses.
Outlook
Your Company’s IT Services business provides a range of
IT and IT-enabled services which include digital strategy Global IT service providers offer a range of end–to-end
advisory, customer-centric design, technology consulting, software development, digital services, IT business solutions,
IT consulting, custom application design, development, research and development services, technology infrastructure
re-engineering and maintenance, systems integration, services, business process services, consulting and
package implementation, global infrastructure services, related support functions. According to the Strategic Review
analytics services, business process services, research and Report 2020 published by NASSCOM, IT export revenues from
India grew by 8.1% to an estimated $147 billion in fiscal year
development and hardware and software design to leading
2020.
enterprises worldwide.
The markets your Company serves are undergoing a massive
Your Company’s IT Products segment provides a range
disruption due to the outbreak of COVID-19. The situation
of third-party IT products, which allows us to offer
caused by the COVID-19 pandemic continues to evolve and
comprehensive IT system integration services. These products
the effects on such markets remain uncertain. The outlook
include computing, platforms and storage, networking
going forward will depend, in addition to other factors, on how
solutions, enterprise information security and software COVID-19 continues to affect the global economy.
products, including databases and operating systems.
Your Company continues to focus on being a system Further information regarding the potential impact
integrator of choice where it provides IT products as a of COVID-19 and various steps taken by your Company
complement to its IT services offerings rather than sell are provided as part of the MD&A Report from page no. 26
standalone IT products. onwards.
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Wipro Limited
Acquisitions, Divestments and Investments February 6, 2017, your Company has adopted salient features
of Integrated Reporting prescribed by the International
Acquisitions are a key enabler for driving capability to build Integrated Reporting Council (‘IIRC’) as part of its MD&A
industry domain, focus on key strategic areas, strengthening
Report. The MD&A report, capturing your Company’s
presence in emerging technology areas including Digital, and
performance, industry trends and other material changes
increase market footprint in newer markets. Your Company
with respect to your Company’s and its subsidiaries, wherever
focuses on opportunities where it can further develop its
applicable, are presented from page no. 26 onwards of this
domain expertise, specific skill sets and its global delivery
Annual Report.
model to maximize service and product enhancements and
higher margins. The MD&A Report provides a consolidated perspective of
economic, social and environmental aspects material to its
In October 2019, your Company acquired US based
strategy and its ability to create and sustain value to its key
International TechneGroup Incorporated (“ITI”) and
stakeholders and includes aspects of reporting as required
its subsidiaries. ITI is a global digital engineering and
by Regulation 34 of the Listing Regulations on Business
manufacturing solutions company and a world leader
Responsibility Report. Statutory section of Business
in Computer Aided Design (CAD) and Product Lifecycle
Responsibility Report is provided from page nos. 336 to 342
Management (PLM) interoperability software services.
of this Annual Report.
In February 2020, your Company acquired Rational
Interaction, Inc., and its subsidiaries, a full-service,
technology enabled, strategic and creative digital customer
III. Governance and Ethics
experience (CX) company that executes multi-channel digital
Corporate Governance
experiences for customer-centric brands.
Your Company believes in adopting best practices of
In June 2019, your Company sold its remaining 11% equity corporate governance. Corporate governance principles
holding in WAISL Limited (“WAISL”), which was a joint are enshrined in the Spirit of Wipro, which form the core
venture between Wipro Limited and Delhi International values of Wipro. These guiding principles are also articulated
Airport Limited, to Antariksh Softtech Private Limited and through the Company’s code of business conduct, Corporate
has consequently exited the joint venture. Further, your Governance Guidelines, charter of various sub-committees
Company also completed the divestment of Wipro’s Workday
and disclosure policy.
& Cornerstone OnDemand Business in Portugal, France and
Sweden to Alight Solutions LLC and its group companies. As per Regulation 34 of the Listing Regulations, a separate
section on corporate governance practices followed by your
Wipro Ventures, the strategic investment arm of Wipro,
Company, together with a certificate from V. Sreedharan
announced a $150 mn Fund II in January 2020, making it a
& Associates, Company Secretaries, on compliance with
$250 million fund that invests in early to mid-stage enterprise
corporate governance norms under the Listing Regulations,
software startups. As of March 31, 2020, Wipro Ventures has
is provided at page no. 115 onwards.
active investments in and partnered with 14 startups in the
following areas – Artificial Intelligence, Business Commerce,
Cybersecurity, Data Management, Industrial IoT, Fraud & Risk Board of Directors
Mitigation, Cloud Infrastructure and Testing Automation. In
addition to direct investments in emerging startups, Wipro
Board’s Composition and Independence
Ventures has invested in five enterprise-focused venture Your Company’s Board consists of global leaders and
funds: B Capital, TLV Partners, Work-Bench Ventures, Glilot visionaries who provide strategic direction and guidance to
Capital Partners and Boldstart Ventures. In April 2020, Wipro the organization. As on March 31, 2020, the Board comprised
Ventures has divested its stake in Emailage Corporation and two Executive Directors, six non-executive Independent
CloudGenix. Directors and one non-executive non independent Director.
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Annual Report 2019-20
Corporate Overview | Management & Board Reports | Financial Statements
under Section 149(7) of the Companies Act, 2013 and 2. Re-appointment of Mr. Rishad A. Premji as a Whole
Regulation 25(8) of the Listing Regulations, from the Time Director, designated as Chairman by the Board, for
Independent Directors stating that they meet the prescribed a period of five years with effect from July 31, 2019 to
criteria for independence. The Board, after undertaking July 30, 2024, whose office shall not be liable to retire by
assessment and on evaluation of the relationships disclosed, rotation.
considered the following Non-Executive Directors as
Independent Directors: 3. Designating and appointing Mr. Abidali Z. Neemuchwala
as the Managing Director of the Company with effect
a) Mr. M. K. Sharma from July 31, 2019 till the end of current tenure of
b) Mrs. Ireena Vittal his appointment i.e. January 31, 2021, in addition to
his existing position as Chief Executive Officer of the
c) Mr. William Arthur Owens
Company, and whose office shall be liable to retire by
d) Dr. Patrick J. Ennis
rotation.
e) Mr. Patrick A. Dupuis
f) Mrs. Arundhati Bhattacharya Dr. Ashok S. Ganguly and Mr. N. Vaghul, retired as Independent
Directors from the Board of the Company with effect from
All Independent Directors have affirmed compliance to the July 31, 2019. Further, Mrs. Arundhati Bhattacharya will
code of conduct for independent directors as prescribed in step down as an Independent Director from the Board of
Schedule IV to the Companies Act, 2013. the Company with effect from close of business hours on
June 30, 2020. The Board places on record the immense
For the purpose of Rule 8(5)(iiia) of the Companies (Accounts) contributions made by Dr. Ashok S. Ganguly, Mr. N. Vaghul and
Rules, 2014, there were no independent directors appointed Mrs. Arundhati Bhattacharya to the growth of your Company
during the year ended March 31, 2020. List of key skills, over the years.
expertise and core competencies of the Board is provided at
page no. 117 of this Annual Report. On January 31, 2020, the Company announced that
Mr. Abidali Z. Neemuchwala, Chief Executive Officer and
Managing Director, has decided to step down due to family
Meetings of the Board
commitments. The Board has, at its meeting held on May 29,
The Board meetings are normally held on a quarterly basis 2020, noted the resignation of Mr. Abidali Z. Neemuchwala
and scheduled over two days. The Board met five times as the Chief Executive Officer and Managing Director with
during the financial year 2019-20 on April 15-16, 2019, June effect from the end of the day on June 1, 2020. The Board
6, 2019, July 16-17, 2019, October 14-15, 2019 and January places on record the immense contributions made by
13-14, 2020. The necessary quorum was present for all the Mr. Abidali Z. Neemuchwala to the growth of your Company.
meetings. The maximum interval between any two meetings
did not exceed 120 days. The Board has, at its meeting held on May 29, 2020, approved
the appointment of:
Directors and Key Managerial Personnel 1. Mr. Thierry Delaporte as the Chief Executive Officer and
The shareholders of the Company approved the appointment Managing Director of the Company with effect from July 6,
of Mrs. Arundhati Bhattacharya as an Independent Director 2020 for a period of five years, subject to the approval of
of the Company for a term of 5 years from January 1, 2019 the shareholders and the Central Government, as may be
to December 31, 2023 vide resolution dated June 1, 2019 applicable.
passed by way of postal ballot/e-voting.
2. Mr. Deepak M. Satwalekar as an Additional Director in
At the 73 Annual General Meeting (AGM) held on July
rd the capacity of lndependent Director for a term of 5 years
16, 2019, the shareholders of the Company approved the with effect from July 1, 2020, subject to approval of the
following: shareholders of the Company.
1. Appointment of Mr. Azim H. Premji as a Non-Executive, Pursuant to the provisions of Section 152 of the Companies
Non-lndependent Director of the Company, for a period of Act, 2013 and the Articles of Association of the Company,
five years with effect from July 31, 2019 to July 30, 2024, Mr. Azim H. Premji will retire by rotation at the 74th AGM and
whose office shall be liable to retire by rotation. being eligible, has offered himself for re-appointment.
73
Wipro Limited
Committees of the Board business strategy, governance, risk and understanding of the
organization’s strategy, etc.
Your Company’s Board has the following committees:
The outcome of the Board Evaluation for the financial year
1. Audit, Risk and Compliance Committee, which also acts
2019-20 was discussed by the Board Governance, Nomination
as Risk Management Committee.
and Compensation Committee and the Board at their
2. Board Governance, Nomination and Compensation respective meetings held in April 2020. The Board has received
Committee, which also acts as Corporate Social highest ratings on Board communication and relationships,
Responsibility Committee functioning of Board Committees and legal and financial
3. Administrative and Shareholders/Investors Grievance duties. The Board noted the actions taken in improving Board
Committee (Stakeholders Relationship Committee) effectiveness based on feedback given in the previous year.
4. Strategy Committee Further, the Board also noted areas requiring more focus in
the future, which include discussion on succession planning
Details of terms of reference of the Committees, Committee and updates to be provided on the recent trends on corporate
membership changes, and attendance of Directors at
governance scenario at a global level.
meetings of the Committees are provided in the Corporate
Governance report from page nos. 122 to 125 of this Annual
Report. Policy on Director’s Appointment and
Remuneration
Board Evaluation The Board Governance, Nomination and Compensation
In line with the Corporate Governance Guidelines of the Committee has framed a policy for selection and appointment
Company, Annual Performance Evaluation was conducted of Directors including determining qualifications and
for all Board Members as well as the working of the Board independence of a Director, Key Managerial Personnel (KMP),
and its Committees. This evaluation was led by the Chairman Senior Management Personnel and their remuneration as
of the Board Governance, Nomination and Compensation part of its charter and other matters provided under Section
Committee with specific focus on performance and effective 178(3) of the Companies Act, 2013.
functioning of the Board. The Board evaluation framework has
been designed in compliance with the requirements under Pursuant to Section 134(3) of the Companies Act, 2013,
the Companies Act, 2013 and the Listing Regulations, and the nomination and remuneration policy of the Company
in accordance with the Guidance Note on Board Evaluation which lays down the criteria for determining qualifications,
issued by SEBI in January 2017. The Board evaluation was competencies, positive attributes and independence for
conducted through questionnaire designed with qualitative appointment of Directors and policies of the Company
parameters and feedback based on ratings. relating to remuneration of Directors, KMP and other
employees is available on the Company’s website at
Evaluation of the Board was based on criteria such as h t t p s : // w w w . w i p r o . c o m /c o n t e n t /d a m / n e x u s /e n /
composition and role of the Board, Board communication investor/corporate-governance/policies-and-guidelines/
and relationships, functioning of Board Committees, review ethical-guidelines/wipro-limited-remuneration-policy.pdf.
of performance of Executive Directors, succession planning, We affirm that the remuneration paid to Directors, senior
strategic planning, etc. management and other employees is in accordance with the
Evaluation of Committees was based on criteria such as remuneration policy of the Company.
adequate independence of each Committee, frequency of
meetings and time allocated for discussions at meetings, Risk Management
functioning of Board Committees and effectiveness of its
advice/recommendation to the Board, etc. Your Company has put in place an Enterprise Risk
Management (ERM) framework and adopted an enterprise risk
Evaluation of Directors was based on criteria such as management policy based on globally recognized standards.
participation and contribution in Board and Committee The ERM framework is administered by the Audit, Risk and
meetings, representation of shareholder interest and Compliance Committee. The objective of the ERM framework
enhancing shareholder value, experience and expertise is to enable and support achievement of business objectives
to provide feedback and guidance to top management on through risk-intelligent assessment apart from placing
74
Annual Report 2019-20
Corporate Overview | Management & Board Reports | Financial Statements
significant focus on constantly identifying and mitigating Company’s code of business conduct, to the management
risks within the business. The ERM Framework covers various (on an anonymous basis, if employees so desire). Further,
categories of risks including, inter alia, information security your Company has prohibited discrimination, retaliation
and cyber security risks, effectiveness of the controls that or harassment of any kind against any employee who
have been implemented to prevent such risks and continuous reports under the Vigil Mechanism or participates in the
improvement of the systems and processes to mitigate investigation.
such risks. For more details on the Company’s risk
Awareness of policies is created by, inter alia, sending
management framework, please refer to page nos. 36 to 38
group mailers highlighting actions taken by the Company
of this Annual Report.
against the errant employees. Mechanism followed under
the Ombuds process has been displayed on the Company’s
Compliance Management Framework intranet and website at https://www.wipro.com/investors/
corporate-governance/#WiprosOmbudsProcess.
The Board has approved a Global Statutory Compliance
Policy providing guidance on broad categories of applicable All complaints received through Ombuds process and
laws and process for monitoring compliance. In furtherance investigative findings are reviewed and approved by the
to this, your Company has instituted an online compliance Chief Ombudsperson. Dedicated email address
management system within the organization to monitor (ombuds.person@wipro.com) has been created to facilitate
compliances and provide update to the senior management receipt of complaints and for ease of reporting. All employees
and Board on a periodic basis. The Audit, Risk and Compliance and stakeholders can also register their concerns through
Committee and the Board periodically monitor status of web-based portal at https://www.wipro.com/investors/
compliances with applicable laws. corporate-governance/#WiprosOmbudsProcess. Following
an investigation, a decision is made by the appropriate
authority on the action to be taken basis the findings of the
Code for Prevention of Insider Trading
investigation. In case the complainant is non-responsive
Your Company has adopted a Code of Conduct to regulate, for more than 15 days, the concern may be closed without
monitor and report trading by designated persons and further action.
their immediate relatives as per the requirements under
During the financial year 2019-20, 1,347 complaints were
the Securities and Exchange Board of India (Prohibition
received via the Ombuds process and 1,409 complaints were
of Insider Trading) Regulations, 2015. This Code of Conduct
closed in FY 2020. All cases were investigated and actions
also includes code for practices and procedures for fair
taken as deemed appropriate. Based on self-disclosure
disclosure of unpublished price sensitive information
data, 19% of these were reported anonymously. The top
which has been made available on the Company’s website at
categories of complaints were people processes at 32%
https://www.wipro.com/investors/corporate-governance/.
and workplace concerns and harassment at 34%. The
majority of cases (82%) were resolved through engagement
Vigil Mechanism of human resources or mediation, or closed since they were
unsubstantiated.
Your Company has adopted an Ombuds process as a channel
for receiving and redressing complaints from employees The Audit, Risk and Compliance Committee periodically
and directors, as per the provisions of Section 177(9) and reviews the functioning of this mechanism. No personnel
(10) of the Companies Act, 2013, Regulation 22 of the Listing of the Company were denied access to the Audit, Risk &
Regulations and Regulation 9A of Securities and Exchange Compliance Committee.
Board of India (Prohibition of Insider Trading) Regulations,
Information Required under Sexual
2015.
Harassment of Women at Workplace
Under this policy, your Company encourages its employees (Prevention, Prohibition & Redressal) Act,
to report any incidence of fraudulent financial or other 2013
information to the stakeholders, reporting of instance(s) Your Company has constituted Internal Complaints
of leak or suspected leak of unpublished price sensitive Committee under the Sexual Harassment of Women at
information, and any conduct that results in violation of the Workplace (Prevention, Prohibition and Redressal) Act, 2013
75
Wipro Limited
and also has a policy and framework for employees to report Directors’ Responsibility Statement
sexual harassment cases at workplace. The Company’s
Your Directors hereby confirm that:
process ensures complete anonymity and confidentiality
of information. Adequate workshops and awareness (a) in the preparation of the annual accounts, the applicable
programmes against sexual harassment are conducted accounting standards have been followed along with
across the organization. The below table provides details proper explanation relating to material departures;
of complaints received/disposed during the financial year
2019-20: (b) the Directors have selected such accounting policies
and applied them consistently and made judgments and
No. of complaints filed 125 estimates that are reasonable and prudent so as to give
No. of complaints disposed* 98 a true and fair view of the state of affairs of the Company
No. of complaints pending 27 at the end of the financial year and of the profit and loss
of the Company for that period;
* In addition, 21 cases reported in 2018-19 were disposed during
the financial year 2019-20. (c) the Directors have taken proper and sufficient care for
the maintenance of adequate accounting records in
accordance with the provisions of the Companies Act,
Related Party Transactions
2013 for safeguarding the assets of the Company and for
Your Company has historically adopted the practice of preventing and detecting fraud and other irregularities;
undertaking related party transactions only in the ordinary
and normal course of business and at arm’s length as part (d) the Directors have prepared the annual accounts on a
of its philosophy of adhering to highest ethical standards, going concern basis;
transparency and accountability. In line with the provisions (e) the Directors have laid down internal financial controls
of the Companies Act, 2013 and the Listing Regulations, the to be followed by the Company and that such internal
Board has approved a policy on related party transactions. financial controls are adequate and operating effectively;
An abridged policy on related party transactions has been
placed on the Company’s website at https://www.wipro.com/ (f) as required under Section 134(5)(f) of the Companies Act,
investors/corporate-governance/. 2013, and according to the information and explanations
presented to us, based on the review done by the Audit,
All related party transactions are placed on a quarterly basis Risk and Compliance Committee and as recommended
before the Audit, Risk and Compliance Committee and before by it, we, the Board, hereby, state that adequate systems
the Board for approval. Prior omnibus approval of the Audit, and processes, commensurate with the size of the
Risk and Compliance Committee and the Board is obtained Company and the nature of its business, have been put
for the transactions which are foreseeable and of a repetitive in place by the Company, to ensure compliance with the
nature. provisions of all applicable laws as per the Company’s
Global Statutory Compliance Policy and that such
The particulars of contracts or arrangements with related systems and processes are operating effectively.
parties referred to in Section 188(1) and applicable rules
of the Companies Act, 2013 in Form AOC-2 is provided as Wipro Employee Stock Option Plans/
Annexure I to this Annual Report. Restricted Stock Unit Plans
Details of transaction(s) of your Company with entity(ies) Your Company has instituted various employee stock
belonging to the promoter/promoter group which hold(s) options plans/restricted stock unit plans from time to time
more than 10% shareholding in the Company as required to motivate, incentivize and reward employees. The Board
under para A of Schedule V of the Listing Regulations are Governance, Nomination and Compensation Committee
provided as part of the financial statements. administers these plans. The stock option plans are in
compliance with the Securities and Exchange Board of
Pursuant to Regulation 23(9) of the Listing Regulations, your India (Share Based Employee Benefits) Regulations, 2014
Company has filed the reports on related party transactions as amended (“Employee Benefits Regulations”) and there
with the Stock Exchanges. have been no material changes to these plans during the
76
Annual Report 2019-20
Corporate Overview | Management & Board Reports | Financial Statements
financial year. Disclosures on various plans, details of options There are no qualifications, reservations or adverse remarks
granted, shares allotted upon exercise, etc. as required made by Deloitte Haskins & Sells LLP, Statutory Auditors, in
under the Employee Benefits Regulations read with the their report for the financial year ended March 31, 2020.
Securities and Exchange Board of India circular no. CIR/CFD/
POLICY CELL/2/2015 dated June 16, 2015 are available on Pursuant to provisions of the Section 143(12) of the
the Company’s website at https://www.wipro.com/investors/ Companies Act, 2013, neither the Statutory Auditors nor the
annual-reports/. No employee was issued stock options Secretarial Auditor has reported any incident of fraud to the
during the year equal to or exceeding 1% of the issued capital Audit, Risk and Compliance Committee during the year under
of the Company at the time of grant. review.
77
Wipro Limited
7. Wipro has been positioned as a Leader in ISG Provider Mrs. lreena Vittal, as its members. Mr. William Arthur Owens
Lens™: Network-Software Defined Solutions and Services is the Chairman of the Committee.
Global 2019 quadrant report.
In addition to annual CSR spends, your Company has
8. Wipro has been cited as a Leader and star performer in
committed ` 100 crores towards tackling the unprecedented
Everest Group’s application and Digital Services in Capital
health and humanitarian crisis arising from the COVID-19
Market- Services PEAK MatrixTM Assessment 2020.
pandemic outbreak. This is intended to help in enabling the
9. Wipro has been recognized as the ‘Best Global Systems dedicated medical and service fraternity in the frontline
Integrator’ by leading data platform company, Looker. of the battle against the pandemic and in mitigating its
10. Wipro has been positioned as a ‘Leading Player’ for the wide-ranging human impact, particularly on the most
10 th consecutive year in the ‘Zinnov Zones for Engineering disadvantaged of our society.
R&D Services - 2019’ study.
Further details of awards and accolades won by your Particulars Regarding Conservation of
Company are provided at page no. 15 of this Annual Energy and Research and Development and
Report.
Technology Absorption
Details of steps taken by your Company to conserve energy
VI. Social Responsibility and Sustainability
through its “Sustainability” initiatives, Research and
Corporate Social Responsibility Development and Technology Absorption have been disclosed
as part of the MD&A Report.
Your Company is at the forefront of Corporate Social
Responsibility (CSR) and sustainability initiatives and
practices. Your Company believes in making lasting impact VII. Disclosures
towards creating a just, equitable, humane and sustainable
society. Your Company has been involved with social
Foreign Exchange Earnings and Outgoings
initiatives for more than a decade and half and engages in During the financial year 2019-20, your Company’s foreign
various activities in the field of education, healthcare and exchange earnings were ` 460,794 million and foreign
communities, ecology and environment, etc. exchange outgoings were ` 229,491 million as against
` 444,584 million of foreign exchange earnings and ` 230,362
As per the provisions of the Companies Act, 2013, a company
million of foreign exchange outgoings for the financial year
meeting the specified criteria shall spend at least 2% of its
2018-19.
average net profits for three immediately preceding financial
years towards CSR activities. Accordingly, your Company
spent ` 1,818 million towards CSR activities during the Extract of Annual Return
financial year 2019-20. The contents of the CSR policy and
Pursuant to Section 92(3) and Section 134(3)(a) of the
CSR Report for the year 2019-20 is attached as Annexure V to
Companies Act, 2013, extract of the Annual Return as on
this report. Contents of the CSR policy are also available on
March 31, 2020 in form MGT-9 is enclosed as Annexure VI to
the Company’s website at https://www.wipro.com/investors/
this report. Additionally, the Company has also placed a copy
corporate-governance/.
of annual return of the financial year 2018-19 on its website
The terms of reference of CSR committee, framed in at https://www.wipro.com/investors/annual-reports/.
accordance with Section 135 of the Companies Act,
2013, forms part of Board Governance, Nomination and Material Changes and Commitments
Compensation Committee. At its meeting held on July 16, Affecting the Financial Position of the
2019, the Board approved changes to the composition of Company
Board Governance, Nomination and Compensation
Committee with effect from August 1, 2019. Information regarding potential impact of COVID-19
pandemic on your Company’s business operations and
The Committee consists of three Independent Directors, financial position are provided as part of the MD&A Report
Mr. William Arthur Owens, Mr. M. K. Sharma and from page no. 26 onwards.
78
Annual Report 2019-20
Corporate Overview | Management & Board Reports | Financial Statements
79
Wipro Limited
Annexure I
Particulars of contracts/arrangements made with related parties
Form No. AOC-2
[Pursuant to clause (h) of sub-section (3) of Section 134 of the Companies Act, 2013 and Rule 8(2) of the Companies (Accounts) Rules, 2014]
This Form pertains to the disclosure of particulars of contracts/arrangements entered into by the Company with related parties referred to in
sub-section (1) of Section 188 of the Companies Act, 2013 including certain arm’s length transactions under third proviso thereto.
80
Wipro Technologies SA Subsidiary 01-04-09 - Ongoing As per Transfer Pricing guidelines 26
Wipro Information Technology Netherlands BV Subsidiary 01-06-08- Ongoing As per Transfer Pricing guidelines 1,256
Wipro Portugal S.A. Subsidiary 01-04-07 - Ongoing As per Transfer Pricing guidelines 43
Wipro do Brasil Technologia Ltda Subsidiary 01-04-05 - Ongoing As per Transfer Pricing guidelines 44
Wipro Technologies GmbH Subsidiary 01-03-11- Ongoing As per Transfer Pricing guidelines 1,693
Wipro Technologies Limited Subsidiary 01-05-08 - Ongoing As per Transfer Pricing guidelines 44
Wipro Technology Chile SPA Subsidiary 01-01-16 - Ongoing As per Transfer Pricing guidelines 28
Wipro Outsourcing Services (Ireland) Limited Subsidiary 12-11-12 - Ongoing As per Transfer Pricing guidelines 21
Wipro Information Technology Kazakhstan LLP Subsidiary 15-05-14 - Ongoing As per Transfer Pricing guidelines 53
Wipro (Thailand) Co. Limited Subsidiary 01-11-10- Ongoing As per Transfer Pricing guidelines 43
PT WT Indonesia Subsidiary 01-11-12 - Ongoing As per Transfer Pricing guidelines 244
Wipro IT Services Poland SP Z.O.O Subsidiary 01-04-14 - Ongoing As per Transfer Pricing guidelines 313
Wipro Technologies South Africa (Proprietary) Limited Subsidiary 01-04-12 - Ongoing As per Transfer Pricing guidelines 703
Wipro Technologies Nigeria Limited Subsidiary 01-04-14 - Ongoing As per Transfer Pricing guidelines 103
Wipro Shanghai Limited Subsidiary 27-04-04 - Ongoing As per Transfer Pricing guidelines 0.09
Wipro Technologies Australia Pty Ltd Subsidiary 01-08-12 - Ongoing As per Transfer Pricing guidelines 791
Wipro Promax Analytics Solutions Americas LLC Subsidiary 01-04-16 - Ongoing As per Transfer Pricing guidelines 2
Wipro Chengdu Limited Subsidiary 01-04-09 - Ongoing As per Transfer Pricing guidelines 90
Wipro Networks Pte Limited Subsidiary 01-04-16 - Ongoing As per Transfer Pricing guidelines 1,435
Wipro Technologies SDN BHD Subsidiary 01-04-13- Ongoing As per Transfer Pricing guidelines 7
Wipro Solutions Canada Limited Subsidiary 16-08-14 - Ongoing As per Transfer Pricing guidelines 1,999
Designit Colombia S A S Subsidiary 01-04-18 - Ongoing As per Transfer Pricing guidelines 44
HealthPlan Services, Inc. Subsidiary 01-06-16 - Ongoing As per Transfer Pricing guidelines 810
Cellent GmbH Subsidiary 01-04-16 - Ongoing As per Transfer Pricing guidelines 23
Appirio, Inc. Subsidiary 01-01-17- Ongoing As per Transfer Pricing guidelines 1,118
Wipro Holdings (UK) Limited Subsidiary 01-04-10 - Ongoing As per Transfer Pricing guidelines 1,336
Name of Related Party Nature of Relationship Duration of Contract Salient terms * Amount (` Mn)
Wipro Arabia Co. Limited Subsidiary 23-12-06 - Ongoing As per Transfer Pricing guidelines 748
Wipro Doha LLC Subsidiary 01-04-14 - Ongoing As per Transfer Pricing guidelines 555
Wipro Gulf LLC Subsidiary 01-04-17 - Ongoing As per Transfer Pricing guidelines 329
Wipro Bahrain Limited Co. S.P.C Subsidiary 01-01-15 - Ongoing As per Transfer Pricing guidelines 156
Wipro IT Services Bangladesh Limited Subsidiary 31-03-18- Ongoing As per Transfer Pricing guidelines 413
Wipro Technologies SRL Subsidiary 01-04-14 - Ongoing As per Transfer Pricing guidelines 204
Wipro Japan KK Subsidiary 01-04-19- Ongoing As per Transfer Pricing guidelines 620
Designit Spain Digital, S.L Subsidiary 01-10-19- Ongoing As per Transfer Pricing guidelines 7
Appirio Ltd (Ireland) Subsidiary 01-01-18- Ongoing As per Transfer Pricing guidelines 63
Apprio Ltd (UK) Subsidiary 01-01-17- Ongoing As per Transfer Pricing guidelines 126
International Technegroup Inc Subsidiary 01-10-19- Ongoing As per Transfer Pricing guidelines 68
Wipro Enterprises Private Limited Entity controlled by Promoters 01-04-14 - Ongoing As per RPT Policy guidelines 3
Asian Paints Limited Common Directors Ongoing As per RPT Policy guidelines 3
Piramal Enterprises Limited Common Directors Ongoing As per RPT Policy guidelines 1
The Indian Hotels Company Limited Common Directors Ongoing As per RPT Policy guidelines 0.001
Titan Company Limited Common Directors Ongoing As per RPT Policy guidelines 3
Vedanta Limited Common Directors Ongoing As per RPT Policy guidelines 2
Purchase of Services
Wipro, LLC Subsidiary 01-04-05 - Ongoing As per Transfer Pricing guidelines 2,315
Infocrossing, LLC Subsidiary 01-04-08 - Ongoing As per Transfer Pricing guidelines 11
Opus Capital Markets Consultants, LLC Subsidiary 01-04-16 - Ongoing As per Transfer Pricing guidelines 41
Wipro Technologies SA DE CV Subsidiary 01-01-12 - Ongoing As per Transfer Pricing guidelines 2,132
Wipro Philippines, Inc. Subsidiary 31-03-11 - Ongoing As per Transfer Pricing guidelines 2,402
Wipro Technologies SA Subsidiary 01-04-09 - Ongoing As per Transfer Pricing guidelines 10
Wipro Poland SP Z.O.O Subsidiary 01-04-10 - Ongoing As per Transfer Pricing guidelines 119
81
Wipro Portugal S.A. Subsidiary 01-04-07 - Ongoing As per Transfer Pricing guidelines 462
Corporate Overview |
Wipro do Brasil Technologia Ltda Subsidiary 01-04-05 - Ongoing As per Transfer Pricing guidelines 1,084
Wipro Technologies GmbH Subsidiary 01-03-11 - Ongoing As per Transfer Pricing guidelines 2,439
Wipro Technologies Limited Subsidiary 01-05-08 - Ongoing As per Transfer Pricing guidelines 0.23
Wipro Technology Chile SPA Subsidiary 01-01-16 - Ongoing As per Transfer Pricing guidelines 61
Wipro Outsourcing Services (Ireland) Limited Subsidiary 12-11-12 - Ongoing As per Transfer Pricing guidelines 210
Wipro Technologies SRL Subsidiary 01-01-10 - Ongoing As per Transfer Pricing guidelines 1,801
Wipro (Thailand) Co. Limited Subsidiary 01-11-10- Ongoing As per Transfer Pricing guidelines 48
PT WT Indonesia Subsidiary 01-11-12 - Ongoing As per Transfer Pricing guidelines 28
Wipro IT Services Poland SP Z.O.O Subsidiary 01-04-14 - Ongoing As per Transfer Pricing guidelines 1,552
Wipro Technologies Nigeria Limited Subsidiary 01-04-14 - Ongoing As per Transfer Pricing guidelines 1
Wipro Shanghai Limited Subsidiary 27-04-04 - Ongoing As per Transfer Pricing guidelines 68
Wipro Technologies Australia Pty Ltd Subsidiary 01-08-12 - Ongoing As per Transfer Pricing guidelines 120
Wipro Promax Analytics Solutions Americas, LLC Subsidiary 01-04-16 - Ongoing As per Transfer Pricing guidelines 8
Wipro Chengdu Limited Subsidiary 01-04-09 - Ongoing As per Transfer Pricing guidelines 479
Management & Board Reports |
Wipro Networks Pte Limited Subsidiary 01-04-16 - Ongoing As per Transfer Pricing guidelines 362
Wipro Technologies Peru SAC Subsidiary 01-01-16 - Ongoing As per Transfer Pricing guidelines 5
Wipro Solutions Canada Limited Subsidiary 16-08-14 - Ongoing As per Transfer Pricing guidelines 55
Wipro Technologies Australia Pty Ltd Subsidiary 01-08-12 - Ongoing As per Transfer Pricing guidelines 18
Designit A/S Subsidiary 01-04-16 - Ongoing As per Transfer Pricing guidelines 125
Designit Denmark A/S Subsidiary 01-03-16 - Ongoing As per Transfer Pricing guidelines 382
Designit Germany GmbH Subsidiary 31-03-16 -Ongoing As per Transfer Pricing guidelines 28
Designit Tokyo Ltd. Subsidiary 01-04-16 - Ongoing As per Transfer Pricing guidelines 12
Designit Oslo A/S Subsidiary 01-04-16 - Ongoing As per Transfer Pricing guidelines 3
Designit Spain Digital, S.L Subsidiary 01-04-16 - Ongoing As per Transfer Pricing guidelines 10
Wipro Limited
Financial Statements
Designit Sweden AB Subsidiary 01-04-16 - Ongoing As per Transfer Pricing guidelines 283
Name of Related Party Nature of Relationship Duration of Contract Salient terms * Amount (` Mn)
Designit T.L.V Ltd. Subsidiary 01-04-16 - Ongoing As per Transfer Pricing guidelines 3
Wipro (Dalian) Limited Subsidiary 30-12-15 - Ongoing As per Transfer Pricing guidelines 480
HealthPlan Services, Inc. Subsidiary 01-06-16 - Ongoing As per Transfer Pricing guidelines 312
Cellent GmbH Subsidiary 01-04-16 - Ongoing As per Transfer Pricing guidelines 320
Cellent GmbH Subsidiary 01-04-16 - Ongoing As per Transfer Pricing guidelines 8
Appirio, Inc. Subsidiary 01-01-17- Ongoing As per Transfer Pricing guidelines 3,503
Appirio Ltd (Ireland) Subsidiary 01-01-18- Ongoing As per Transfer Pricing guidelines 44
Apprio Ltd (UK) Subsidiary 01-01-17- Ongoing As per Transfer Pricing guidelines 718
82
Yasmeen H Premji Relative of Director Ongoing As per Agreement 2
Wipro Holdings (UK) Limited Subsidiary Ongoing As per Agreement 51
Wipro, LLC Subsidiary Ongoing As per Agreement 61
Designit Spain Digital, S.L Subsidiary Ongoing As per Agreement 2
Wipro Japan KK Subsidiary Ongoing As per Agreement 16
Wipro Enterprises Private Limited Entity controlled by Promoters Ongoing As per Agreement 2
Corporate Guarantee Commission
Wipro, LLC Subsidiary 01-04-14- Ongoing As per Transfer Pricing guidelines 93
Wipro Technologies GmbH Subsidiary 16-06-17- Ongoing As per Transfer Pricing guidelines 8
Wipro IT Services Poland sp z.o.o. Subsidiary 01-12-15- Ongoing As per Transfer Pricing guidelines 0.45
Wipro Solutions Canada Ltd Subsidiary 01-09-15- Ongoing As per Transfer Pricing guidelines 45
Wipro Technologies Australia Pty Ltd Subsidiary 01-08-12 - Ongoing As per Transfer Pricing guidelines 6
Wipro Holdings (UK) Ltd Subsidiary 20-06-17 - Ongoing As per Transfer Pricing guidelines 1
Wipro Arabia Co. Limited Subsidiary 01-04-14- Ongoing As per Transfer Pricing guidelines 15
Wipro Gulf LLC Subsidiary 01-04-14- Ongoing As per Transfer Pricing guidelines 37
Rental Income
Wipro Gallagher Solutions, LLC. Subsidiary 01-01-16 - Ongoing As per Agreement 2
Wipro Travel Services Limited Subsidiary 21-12-15 - Ongoing As per Agreement 3
Designit Denmark A/S Subsidiary 01-03-16 - Ongoing As per Agreement 35
Wipro, LLC Subsidiary Ongoing As per Agreement 174
Designit Dubai Subsidiary 15-10-19 - Ongoing As per Agreement 2
Wipro Enterprises Private Limited Entity controlled by Promoters 01-04-14 - Ongoing As per Agreement 44
Azim Premji Foundation Entity controlled by Promoters Ongoing As per Agreement 0.37
Management Service Fees
Azim Premji Foundation Entity controlled by Promoters Ongoing Management Service fees 3
Wipro Enterprises Private Limited Entity controlled by Promoters 01-04-14 - Ongoing Management Service fees 40
Name of Related Party Nature of Relationship Duration of Contract Salient terms * Amount (` Mn)
Restricted Stock Unit (RSU) Compensation Cost Allocation
Wipro Arabia Co. Limited Subsidiary Ongoing As per Allocation 2
Wipro do Brasil Servicos de Tecnologia S.A. Subsidiary Ongoing As per Allocation 1
Wipro, LLC Subsidiary Ongoing As per Allocation 13
Wipro do Brasil Technologia Ltda Subsidiary Ongoing As per Allocation 1
Wipro Technologies GmbH Subsidiary Ongoing As per Allocation 14
Wipro Technologies SA DE CV Subsidiary Ongoing As per Allocation 5
Infocrossing, LLC Subsidiary Ongoing As per Allocation 0.19
Designit Oslo A/S Subsidiary Ongoing As per Allocation 1
Designit Spain Digital, S.L Subsidiary Ongoing As per Allocation 0.23
Cooper Software, LLC Subsidiary Ongoing As per Allocation 1
Topcoder, LLC Subsidiary Ongoing As per Allocation 8
Wipro HR Services India Private Limited Subsidiary Ongoing As per Allocation 2
Appirio, Inc. Subsidiary Ongoing As per Allocation 0.27
Designit T.L.V Ltd. Subsidiary Ongoing As per Allocation 0.39
Wipro Bahrain Limited Co. S.P.C Subsidiary Ongoing As per Allocation 0.29
Cellent GmbH Subsidiary Ongoing As per Allocation 0.45
Wipro Japan KK Subsidiary Ongoing As per Allocation 0.84
HealthPlan Services, Inc. Subsidiary Ongoing As per Allocation 2
Other Costs
Wipro Enterprises Private Limited Entity controlled by Promoters 01-04-14 - Ongoing On Actual Cost Basis 107
Azim Premji Foundation Entity controlled by Promoters Ongoing On Actual Cost Basis 8
Asian Paints Limited Common Directors Ongoing On Actual Cost Basis 0.01
Atria Convergence Technologies Limited Common Directors Ongoing On Actual Cost Basis 0.10
Bain and Company Common Directors Ongoing On Actual Cost Basis 129
83
Indian School of Business Common Directors Ongoing On Actual Cost Basis 3
Corporate Overview |
Mahindra World City Developers Limited Common Directors Ongoing On Actual Cost Basis 4
Piramal Enterprises Limited Common Directors Ongoing On Actual Cost Basis 0.13
Pl International Holdings LLC Common Directors Ongoing On Actual Cost Basis 0.03
The Indian Hotels Company Limited Common Directors Ongoing On Actual Cost Basis 0.05
Titan Company Limited Common Directors Ongoing On Actual Cost Basis 0.17
Vedanta Limited Common Directors Ongoing On Actual Cost Basis 0.47
Joint venture with Wipro
Wipro GE Healthcare Private Limited Enterprises Private Limited Ongoing On Actual Cost Basis 0.03
and General Electric
Interest Income
Wipro IT Services SE Subsidiary Ongoing As per Agreement 0.02
Wipro, LLC Subsidiary Ongoing As per Agreement 23
* Appropriate approvals have been taken from the Audit Committee and Board of Directors of the Company from time to time for the related party transactions.
Management & Board Reports |
Wipro Limited
Financial Statements
Annexure II
Statement of Disclosure of Remuneration under Section 197 of Companies Act, 2013 and Rule 5(1) of Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014
(1)
Mr. Rishad A. Premji was appointed as Executive Chairman with effect from July 31, 2019.
(2)
Mr. Abidali Z. Neemuchwala was appointed as Managing Director of the Company with effect from July 31, 2019, in addition to his existing
position as Chief Executive Officer.
(3)
Mr. Azim H. Premji retired from the position of Executive Chairman and Managing Director with effect from July 30, 2019 and was appointed
as Non-Executive, Non-Independent Director of the Company effective July 31, 2019. Considering the aforesaid, comparable figures have
not been provided in the above table.
(4)
Comparable figures not provided as Dr. Ashok S. Ganguly and Mr. N. Vaghul retired as directors w.e.f. July 31, 2019 and
Mrs. Arundhati Bhattacharya was appointed effective January 1, 2019.
84
Annual Report 2019-20
Corporate Overview | Management & Board Reports | Financial Statements
Notes:
1. The median remuneration of employees (MRE) excluding Whole Time Directors was ` 6,52,000 and ` 6,00,000 in fiscal 2020 and fiscal 2019
respectively. The increase in MRE excluding the Whole Time Directors in fiscal 2020 as compared to fiscal 2019 is 8.67%.
2. The median remuneration of employees (MRE) including Whole Time Directors was ` 6,52,000 and ` 6,00,000 in fiscal 2020 and fiscal 2019
respectively. The increase in MRE including the Whole Time Directors in fiscal 2020 as compared to fiscal 2019 is 8.67%.
3. The number of permanent employees on the rolls of the Company as of March 31, 2020 and March 31, 2019 was 182,886 and 171,425
respectively.
4. The aggregate remuneration of employees excluding WTD grew by 9.07% over the previous fiscal, attributed to the increase in headcount.
The aggregate increase in salary for WTDs and other KMPs was 1.54% in fiscal 2020 over fiscal 2019.
5. In view of the current situation caused by COVID-19, uncertainty in business is likely to last for the next few months. To show solidarity with
the team in facing the challenge:
• Mr. Azim H. Premji, Founder Chairman, has foregone the profit linked commission payable to him for the relevant period for financial
year 2019-20.
• Mr. Rishad A. Premji, Chairman, has foregone the variable pay and profit linked commission payable to him for the relevant period for
financial year 2019-20.
Accordingly, the Board did not determine profit linked commission due to Mr. Azim H. Premji for FY 2019-20, variable pay and profit
linked commission due to Mr. Rishad A. Premji for financial year 2019-20 and the remuneration considered for the table above does not
include the same.
6. In support of Wipro’s humanitarian efforts to combat COVID-19, Mr. Patrick Dupuis, Independent Director, has foregone the commission
payable to him for quarter ended March 31, 2020 and Wipro will contribute Mr. Dupuis’ commission to Wipro Cares for its various COVID-19
related activities as part of its Corporate Social Responsibility program.
7. Mr. Rishad A. Premji’s compensation also included cash bonus (part of his allowances) on an accrual basis, which is payable over a period
of time.
8. Computation of remuneration to Mr. Jatin Pravinchandra Dalal is on an accrual basis and it includes the amortization of Restricted Stock
Units (RSUs), granted to him, which will vest over a period of time. This also includes RSUs that will vest based on performance parameters
of the Company.
9. The Company announced on January 31, 2020 that Mr. Abidali Z. Neemuchwala has resigned from the position of Chief Executive
Officer and Managing Director due to family commitments and will, however, continue to hold the office of Chief Executive Officer and
Managing Director until a successor is appointed. The Board of Directors has, at its meeting held on May 29, 2020, noted the resignation of
Mr. Abidali Z. Neemuchwala as the Chief Executive Officer and Managing Director with effect from the end of the day on June 1, 2020.
Compensation for Mr. Abidali Z. Neemuchwala for the year ended March 31, 2020 includes cost of accelerated vesting of unvested options
and variable pay.
10. The Company affirms that the remuneration is paid as per the remuneration policy of the Company.
The variable pay of top executives including the Chief Executive Officer and Managing Director is based on clearly laid out
criteria and measures, which are linked to the desired performance and business objectives of the organization. The criteria for
variable pay, which is paid out annually, includes both financial and non-financial parameters like revenue, profit achievement,
customer satisfaction and other strategic goals as decided by the Board from time to time.
Apart from the variable pay component, long term (typically greater than one year) incentives granted to top executives including
the Chief Executive Officer and Managing Director includes both time-based and performance-based stock units (PSUs).
The vesting of PSUs is based on performance parameters of the Company over a defined performance period and is
linked to pre-defined financial goals. Time-based stock units typically vest over a defined period. The vesting pattern and
schedule for both these types of stock units are as determined by the Board Governance, Nomination and Compensation
Committee.
85
Wipro Limited
Annexure III
Information as per Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014
A) Top 10 employees in terms of salary drawn during the year 2019-20
Gross
Sl Date of joining Experience
Name of the Employee Remuneration Educational Qualification Age Last Employment Designation
No. (dd-mm-yyyy) (yrs)
(`)
1 Abidali Z Neemuchwala *# 01-Apr-15 322,807,092 BE, Electronics and 52 28 Tata Consultancy Chief Executive Officer and Managing
86
10 Saurabh Govil 11-May-09 44,359,096 B.Sc., PGDM -PM & IR 52 31 GE India President and Chief Human Resources
Officer
Notes:
1. Remuneration comprises salary, allowances, commission, performance based payments, perquisite and Company’s contribution to Provident Fund and super-annuation as per definition
contained in Section 2(78) of the Companies Act, 2013 paid during the year. It also includes perquisites value of Restricted Stock Units (RSUs) exercised, if any, by employees.
2. The nature of employment is contractual in all the above cases.
3. None of the employees employed throughout the financial year or part thereof, were in receipt of remuneration in that year, which in the aggregate, or as the case may be at a rate which, in
the aggregate, is in excess of that drawn by the Managing Director or Whole Time Director or Manager and holds by himself or along with his spouse and dependent children, not less than two
percent of the equity shares of the Company.
4. In terms of proviso to Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, particulars of employees posted and working in a country outside India,
not being Directors or their relatives, have not been included in the above statement.
5. Mr. Rishad A. Premji, who is in the employment of the Company, is the son of Mr. Azim H. Premji, Founder Chairman of the Company. Computation of remuneration of Mr. Rishad A. Premji,
Chairman, includes cash bonus (part of his allowances) on an accrual basis, which is payable over a period of time.
* The Company announced on January 31, 2020 that Mr. Abidali Z. Neemuchwala has resigned from the position of Chief Executive Officer and Managing Director due to family commitments
and will, however, continue to hold the office of Chief Executive Officer and Managing Director until a successor is appointed. The Board of Directors has, at its meeting held on May 29, 2020,
noted the resignation of Mr. Abidali Z. Neemuchwala as the Chief Executive Officer and Managing Director with effect from the end of the day on June 1, 2020. Compensation for the year
ended March 31, 2020 includes cost of accelerated vesting of unested options and variable pay.
# Figures mentioned in ` are equivalent of amounts paid in US$.
** Mr. Rishad A. Premji was appointed as Executive Chairman of the Board with effect from July 31, 2019.
*** Computation of remuneration to the Chief Financial Officer is on an accrual basis and includes the amortization of Restricted Stock Units (RSUs), granted to him, which will vest over a period
of time. This also includes RSUs that will vest based on performance parameters of the Company.
B) Employees drawing salary of ` 102 lakhs or above per annum and posted in India
Name of the employee Date of joining Gross Educational Age Experience Last Employment Designation
(dd-mm-yyyy) Remuneration Qualification (yrs)
(in `)
Aathir Ahad 20-Jan-03 11,362,629 BE 47 24 Bangalore Labs General Manager
Ajay Bhaskar 08-Jul-02 12,242,608 BE, MBA 47 25 Hindustan Lever Ltd. Vice President- Head of Corporate Strategy & IP
Amit Bajoria 30-Oct-00 15,727,125 CA 42 19 First Employment Senior Vice President
Amit S R 23-Oct-15 10,851,304 LLB, MBA 43 20 HCL America, Inc General Manager and Associate General
Counsel
Aneesh Garg 02-Feb-17 15,339,941 Business Mgmt 47 23 Southerland Global Services Senior Vice President
Science
Anil Raibagi Madhav 16-Oct-02 20,366,414 B. Com, MBA 49 28 IBM Senior Vice President and Head - M & A
Animesh Sengupta 12-Sep-06 11,071,145 B.Com 50 29 GE Money General Manager
Anjan Mukherjee 16-Dec-13 10,152,988 PG Diploma 46 24 Aditya Birla Minacs Global Head
Anuj Bhalla 15-May-96 25,633,397 BE, MBA 49 24 First Employment Senior Vice President & Global Delivery Head
Anurag Seth 03-May-90 14,884,585 BE, PGDBM 53 30 First Employment Vice President & Head- Talent Transformation,
- Information TopGear & Business Continuity
Management
Aparna Iyer 21-Apr-03 11,607,872 C A 39 17 First Employment Vice President
Aravind V S 22-Apr-02 18,208,870 PGDBM 40 18 First Employment Senior Vice President
Arjun Ramaraju 08-Nov-94 23,900,064 BE 47 25 First Employment Senior Vice President
Arunkumar M 03-Feb-97 15,439,079 BE 46 44 IISc Vice President
87
Corporate Overview |
Ashok Nagar 11-Apr-05 14,117,639 PGDCA 49 25 Technova India Pvt. Ltd. General Manager
Ashok Philipose 16-Apr-96 13,933,957 BE 50 25 Pentafour Software Vice President
Ayaskant Sarangi 03-Dec-12 21,958,866 PGDBM 45 22 GE India Senior Vice President - Human Resources
Balasubramanian K 17-Apr-02 15,055,754 B.Com ,C A 40 18 First Employment Vice President
Bharat Shetty 26-Feb-01 10,125,369 BE 44 22 Mastek Ltd. Practice Head
Chandra Shekar S N 06-Nov-95 11,206,973 BE 47 24 Indian Industrial Machines Vice President
David Dlima 23-Apr-15 12,075,824 B. Tech, MS 55 31 IBM global services Vice President & CIS Consulting Head
in Computer
Engineering
Denny John 12-Aug-96 12,008,435 BE 48 29 Modi Olivetti Ltd Vice President
Devender Malhotra 23-Aug-02 17,287,050 BE, PGD 48 25 Satyam GE Software Vice President & Global Delivery Head, CIS
Dipak Kumar Bohra 14-Jun-02 24,405,402 B Com, CA, ICWAI 47 23 Aditya Birla Group Senior Vice President, Finance
Gautam Sarkar 22-Apr-03 13,625,192 PGDBM 51 27 Usha Communications Vice President & Business Head,
Management & Board Reports |
Communications
Gopikrishnan Gouri 27-Aug-12 15,117,870 PGDBM 48 24 Infosys Limited Managing Partner
Ramachandran
Gurmeet Singh Sran 16-Jul-09 15,771,778 M Sc 50 25 Genpact Senior Practice Director
Harsh Bhatia 07-Nov-02 20,059,450 B.SC. 54 32 DakSH Vice President - Operations
Jay Prakash Sahal 02-Nov-04 10,810,398 CA 43 19 Tata Steel Vice President
Jayant Prabhu K 05-Aug-96 12,939,881 BE 44 23 First Employment Vice President
Jayanta Dey 13-Oct-88 17,155,965 BE, MBA 54 32 First Employment Vice President
Wipro Limited
Financial Statements
Name of the employee Date of joining Gross Educational Age Experience Last Employment Designation
(dd-mm-yyyy) Remuneration Qualification (yrs)
(in `)
Keyur Maniar 12-Mar-07 20,185,165 BE, MBA 50 26 Capital One Financial Senior Vice President
Krishnakumar N 05-Sep-94 11,313,194 B.Sc, M.Sc 52 28 DRDO Vice President- Global Head Service
(Computer Science) Transformation
Krishnan Subramanian 13-Apr-15 15,059,966 C A 52 28 Content Media India Pvt Ltd Vice President
88
Nandini Matiyani 01-Oct-13 10,452,870 BE 47 25 Onmobile Global Ltd Vice President
Narayanan S 01-Dec-95 12,610,809 BE 49 26 Deutsche S/W Vice President
Nikhil Gupta 23-Jun-14 20,938,618 PG Diploma 44 20 Ernst and Young Mfg Head - Nordics
Prakashan Manikoth 16-May-12 10,360,964 C A 45 20 Tata Consultancy Services Vice President
Prasad Gantasai 01-Feb-06 19,958,202 B.A ,MSW 46 25 Isoft India Vice President & Head-HR
Prasad V Bhatt 02-Mar-89 12,117,013 M.Tech 55 31 ORG Systems Vice - President
Prasenjit Lahiri 05-Jan-95 18,731,091 BE 51 26 TVS Electronics Vice President
Priti Kataria 01-Jun-98 10,927,466 MBA,HR 47 21 First Employment Vice President & Global HR Head-BFSI
Putul Mathur 24-Apr-06 14,628,191 PG, Diploma 51 25 Nittany Outsourcing Services, Vice President - Human Resources
in Personnel Chennai
Management and
Industrial Relations
Rahul Mansharamani 19-Oct-04 12,873,884 PG Diploma, BE 44 20 Eicher Motors Limited Vice President
Rahul Shah 02-Nov-15 20,023,726 PGDM 49 24 Infosys Digital Vice President
Raja Ukil 15-Jul-02 20,268,618 BE 51 24 Price Waterhouse Senior Vice President & Global Head, Cyber
Security & Risk Services
Rajesh Sehgal 04-Jun-01 13,186,272 BE, MBA 50 24 Hoogovens Vice President
Ramachandran P 16-Dec-96 10,093,555 BE 45 23 First Employment Vice President
Renil Kumar 19-Apr-04 10,501,136 MPM 48 23 Saint Gobain Vice President-Human Resources
Name of the employee Date of joining Gross Educational Age Experience Last Employment Designation
(dd-mm-yyyy) Remuneration Qualification (yrs)
(in `)
Saibal Basu 15-Jul-02 11,264,216 B.Sc 54 30 Trigent Software Vice President
Samir Gadgil 09-Oct-04 21,243,424 MPM, BE 44 21 Cedar Consulting Vice President-Human Resources
Sanaulla Khan 12-May-15 14,776,835 M.Com, FCS 49 26 ICICI Prudential Life Vice President & Company Secretary
Mohammed Insurance Co. Ltd.
Sanjay Sankar Basu 06-May-19 11,249,696 BE, PGDM 53 26 SAP Labs India Pvt. Ltd. Vice President
Sanjeev R 07-Sep-98 14,713,322 BE, PGDAC 47 24 CMC Limited Vice President- Engineering & Presales-
HOLMES
Sanjeev Singh 02-Nov-18 24,024,185 B.Tech, PGDM 54 19 Aegis Limited Senior Vice President
Sanjiv K R 16-Nov-88 27,784,160 MMS 56 32 DCM Data Products Chief Technology Officer
Satish Y 19-Apr-00 12,823,961 BE 47 24 Jindal Vijayanagar Steel ltd Vice President
Shantanu Rohatgi 15-May-89 14,345,841 BE, MBA 52 31 First Employment Vice President-PRE Enterprise
Sheetal Sharad Mehta 16-Sep-94 19,547,195 BE 47 26 First Employment Senior Vice President
Somit Kapoor 25-Feb-02 13,901,693 BE 43 18 New Holland Vice President
Srinivasan G 14-Apr-99 13,153,376 BE 50 29 Indchem Electronics Vice President
Srivatsan 12-Jan-12 10,770,706 ACA, PGDM 51 25 Oracle financial services ltd General Manager
Venkataramani
Sudhir Kesavan 09-Jan-17 11,220,128 B.Tech 46 23 Value Labs Vice President
89
Corporate Overview |
Sunita Cherian 04-Nov-96 22,446,882 B.Tech, PGDBA 46 23 First Employment Senior Vice President - Human Resources
Supriya Das 01-Jul-87 12,273,448 BE 55 32 First Employment Vice President
Surendranath Garimella 10-Jul-06 16,586,354 B.Sc.,MCA 52 30 MSG Systems Vice President
Swati Oberoi 06-Nov-17 12,026,000 Masters in 52 29 Tata Consultancy Services General Manager
Business
Administration
Thamizhanambi Mm 18-Oct-13 11,686,630 M.Sc. 55 31 Ramco Systems Vertical Delivery Head- Govt
(Mathematics)
and PG Diploma in
Management
Venkataraman 10-Aug-04 18,132,140 B.Sc., Advance 49 15 NIIT Limited Vice President
Mahadevan Diploma in SMGT
Vijayasimha Alilughatta 28-Feb-14 23,739,989 BE 46 24 Infosys Limited Senior Vice President
Management & Board Reports |
Vipin Chandran Nair 12-Mar-12 10,307,613 M.A. in Economics 49 26 TickerPlant Ltd General Manager & Head-Communications
Vishal Kumar Shah 01-Oct-10 10,897,914 Fellow Programme 48 20 Right Management Vice President
in Management
(PhD), PGDM
Vishwas Deep 01-Mar-92 11,950,356 BE, M.Tech 51 28 First Employment Vice President and Global Head- Talent
Acquisition
Viswanathan 06-Feb-14 20,668,443 M.Tech 53 33 Vodafone India Ltd Vice President
Ramaswamy
Wipro Limited
Financial Statements
C) Employed for Part of the Year with an average salary of ` 8.5 lakhs or above per month and posted in India
Name of the Employee Date of joining Gross Educational Qualification Age Experience Last Employment Designation
(dd-mm-yyyy) Remuneration (yrs)
(in `)
Azim H. Premji* 17-Aug-66 10,235,847 Graduate Degree in Electrical 74 53 First Employment Executive Chairman and
Engineering Managing Director
Hariprasad Hegde 22-Apr-02 40,583,367 B. Tech, B.Sc, PG Diploma 58 36 Satyam Computer Vice President
Services Limited
Sanjesh K Gupta 04-Dec-84 19,400,796 Diploma, AMIE 56 35 Televista Electronics – Vice President & Head -
(Elec.& Communication) Computer Division Govt. & Defence, India
Santhosh G Nair 30-Apr-90 13,613,082 B.Tech, PGDM 53 30 First Employment Vice President
Suresh Kolati 15-Jun-16 14,326,905 BE 50 23 Accenture Vice President & Global Head -
BFSI Domain & Consulting
Vasudevan A 31-Mar-86 21,135,214 B.E., M.Tech 58 34 First Emloyment Vice President
90
Notes
1. The above table contains details of employees in alphabetical order and does not include the details of remuneration drawn by the top 10 employees as their details
are provided in item (A) of Annexure III to this Board’s Report.
2. Remuneration comprises salary, allowances, commission, performance based payments, perquisite and Company’s contribution to provident fund and super-
annuation as per the definition contained in Section 2(78) of the Companies Act, 2013 paid during the year. It also includes perquisites value of Restricted Stock Units
(RSUs) exercised, if any, by employees.
3. The nature of employment is contractual in all the above cases
4. None of the employees except Mr. Azim H. Premji, Founder Chairman, holds 2% or more of the paid-up equity share capital of the Company as per clause (iii) of sub-
rule (2) of Rule 5 of Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
5. In terms of the proviso to Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, particulars of employees posted and
working in a country outside India, not being Directors or their relatives, have not been included in the above statement.
* Mr. Azim H. Premji retired from the position of Executive Chairman and Managing Director with effect from July 30, 2019. The remuneration disclosed above is for the
period from April 1, 2019 to July 30, 2019. Mr. Azim H. Premji is the father of Mr. Rishad A. Premji, Chairman.
Corporate Overview | Management & Board Reports | Financial Statements
Annexure IV
Form No. MR-3
SECRETARIAL AUDIT REPORT
[Pursuant to sub-section (1) of Section 204 of the Companies Act, 2013 and Rule 9 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]
FOR THE FINANCIAL YEAR ENDED MARCH 31, 2020 Direct Investment and Overseas Direct Investment. There
was no External Commercial Borrowing by the Company
To, during the period under review;
The Members,
v. The following Regulations and Guidelines prescribed
Wipro Limited,
under the Securities and Exchange Board of India Act,
Doddakannelli,
1992 (‘SEBI Act’): -
Sarjapur Road,
Bengaluru - 560035 a. The Securities and Exchange Board of India
(Substantial Acquisition of Shares and Takeovers)
We have conducted the secretarial audit of the compliance Regulations, 2011;
of applicable statutory provisions and the adherence to
good corporate practices by Wipro Limited (the Company). b. The Securities and Exchange Board of India
Secretarial Audit was conducted in a manner that provided (Prohibition of Insider Trading) Regulations, 2015;
us a reasonable basis for evaluating the corporate conducts/ c. The Securities and Exchange Board of India (Issue of
statutory compliances and expressing our opinion thereon. Capital and Disclosure Requirements) Regulations,
2018;
Based on our verification of the Company’s books, papers,
minute books, forms and returns filed and other records d. The Securities and Exchange Board of India (Share
maintained by the Company and also the information Based Employee Benefits) Regulations, 2014;
provided by the Company, its officers, agents and authorized
e. The Securities and Exchange Board of India (Issue
representatives during the conduct of secretarial audit, we
and Listing of Debt Securities) Regulations, 2008
hereby report that in our opinion, the Company has, during
(Not Applicable to the Company during the Audit
the audit period covering the financial year ended on March
Period);
31, 2020 (the audit period) complied with the statutory
provisions listed hereunder and also that the Company has f. he Securities and Exchange Board of India
T
proper Board-processes and compliance-mechanism in (Registrars to an Issue and Share Transfer Agents)
place to the extent, in the manner and subject to the reporting Regulations, 1993 regarding the Companies Act and
made hereinafter: dealing with client;
We have examined the books, papers, minute books, forms g. The Securities and Exchange Board of India (Delisting
and returns filed and other records maintained by the of Equity Shares) Regulations, 2009 (Not Applicable
Company for the financial year ended on March 31, 2020 to the Company during the Audit Period);
according to the provisions of:
h. The Securities and Exchange Board of India (Buyback
i. The Companies Act, 2013 (the Act) and the rules made of Securities) Regulations, 2018; and
thereunder;
i. Securities and Exchange Board of India (Listing
ii. The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) Obligations and Disclosure Requirements)
and the rules made thereunder; Regulations, 2015.
iii. The Depositories Act, 1996 and the Regulations and vi. Other laws applicable specifically to the Company
Bye-laws framed thereunder; namely:
iv. Foreign Exchange Management Act, 1999 and the rules a. Information Technology Act, 2000 and the rules
and regulations made thereunder to the extent of Foreign made thereunder
91
Wipro Limited
b. Special Economic Zones Act, 2005 and the rules with the size and operations of the Company to monitor and
made thereunder ensure compliance with applicable laws, rules, regulations
and guidelines.
c.
Software Technology Parks of India rules and
regulations We further report that during the audit period, except for the
following events, there was no event/action having a major
We have also examined compliance with the applicable
bearing on the Company’s affairs in pursuance of the above
clauses of the following:
referred laws, rules, regulations, guidelines etc.,
i. Secretarial Standards issued by The Institute of Company
a. The Company had bought back 32,30,76,923 (Thirty Two
Secretaries of India on Meetings of the Board of Directors
Crores Thirty Lakhs Seventy Six Thousand Nine Hundred
and General Meetings.
and Twenty Three) fully paid up Equity Shares of the
ii. L
isting Agreements entered into by the Company with Company of Face Value of ` 2/- (Rupees Two Only) each
BSE Limited and National Stock Exchange of India at a price of ` 325/- (Rupees Three Hundred and Twenty-
Limited. Five Only) per Equity Share on a proportionate basis
through the tender offer process.
We have not examined compliance by the Company with
applicable financial laws, like direct and indirect tax laws, b. Mr. Azim H. Premji (DIN: 00234280) Chairman and
since the same have been subject to review by statutory Managing Director of the Company, whose period of office
financial audit and other designated professionals. was liable to expire on July 30, 2019 was re-appointed
and designated as Non-Executive, Non-Independent
During the period under review, the Company has complied Director of the Company for a period of five years with
with the provisions of the Act, Rules, Regulations, Guidelines, effect from July 31, 2019.
etc. mentioned above.
c. Mr. Rishad A. Premji (DIN: 02983899) Whole Time Director
We further report that: (designated as Executive Director and Chief Strategy
Officer) of the Company whose period of office was liable
The Board of Directors of the Company is duly constituted
to expire on April 30, 2020 was re-appointed as Whole
with proper balance of Executive Directors, Non-Executive
Time Director (designated as “Executive Chairman”) of
Directors and Independent Directors. The changes in the
the Company for a period of five years with effect from
composition of the Board of Directors that took place during
July 31, 2019.
the period under review were carried out in compliance with
the provisions of the Act. d. Mr. Abidali Z. Neemuchwala (DIN: 02478060) Whole Time
Director who was earlier designated as Chief Executive
Adequate notice is given to all directors to schedule the Officer and Executive Director was designated as Chief
Board Meetings, agenda and detailed notes on agenda were Executive Officer and Managing Director of the Company
sent at least seven days in advance and a system exists for with effect from July 31, 2019.
seeking and obtaining further information and clarifications
on the agenda items before the meeting and for meaningful For V. SREEDHARAN & ASSOCIATES
participation at the meeting. Company Secretaries
As per the minutes of the meetings duly recorded and signed (V. Sreedharan)
by the Chairman, the decisions of the Board were unanimous Partner
and no dissenting views have been recorded. FCS: 2347; CP No. 833
UDIN No. : F002347B000296168
We further report that based on the review of the compliance
reports/certificates of the Company Secretary which were Bengaluru
taken on record by the Board of Directors, there are adequate May 29, 2020
systems and processes in the Company commensurate
This report is to be read with our letter of even date which is annexed as ‘Annexure-1’ and forms an integral part of this report.
92
Annual Report 2019-20
Corporate Overview | Management & Board Reports | Financial Statements
Annexure -1
93
Wipro Limited
Annexure V
Corporate Social Responsibility Report for the financial year 2019-20
We present our report on Wipro’s Corporate Social society and academic partner organizations across India
Responsibility (CSR) for the financial year 2019-20. The and the overseas geographies where we have presence- US,
values of ‘Spirit of Wipro’ guide all our actions. Our values UK, Europe, LATAM and APAC. A detailed articulation of our
‘Being passionate about clients’ success’, ‘Being global programs is available in the MD&A Report forming part of this
and responsible’, ‘Treating each person with respect’, and Annual Report. The articulation is aligned with the integrated
‘Unyielding integrity in everything we do’ are the primary multiple capitals approach and covers salient facts, metrics
drivers of the letter and spirit of being a responsible business. and narratives on our goals, programs, outcomes and
governance.
Our goals are centered around (i) making Wipro more
sustainable as defined by the triple bottom-line framework Towards the end of the financial year, the whole world came
and (ii) contributing to a more just, inclusive and sustainable face to face with the COVID-19 crisis, an unprecedented
society through our work in Education, Ecology, Primary challenge for humanity. The multi-dimensional nature of the
Health Care and Disaster Response. crisis- healthcare, humanitarian, economic and social- poses
a particularly daunting challenge. At Wipro, we have made a
Our areas of work span a wide range- Energy and Climate commitment of ` 100 crores for FY21 towards our COVID-19
Change, Water, Solid Waste, Biodiversity, Urban Ecology response. In combination with the commitments of Azim
and Public Spaces, issues of Quality, Access and Inclusion Premji Foundation (` 1,000 Cr) and Wipro Enterprises Private
in Education, Sustainability in Education and Access to Limited (` 25 Cr), we are weaving together an integrated
Primary Health Care for the disadvantaged sections. Our response that addresses the different facets of the problem
approach emphasizes depth and a systemic, long term in a holistic manner. We recognize that the COVID-19 crisis
view that informs the way we choose our areas of work, the is going to be with us for some time and therefore, our
partners we collaborate with and the bedrock of ethics and commitment is not just for immediate short-term relief but
good governance that underlies all our programs. Collectively, designed for impact over the medium and long term as well.
these initiatives help in enhancing social and natural capital Lastly, we would like to highlight that our COVID-19 financial
while our workplace culture of diversity, inclusion and commitment is in addition to our regular CSR work that
employee empowerment strengthen human capital. Value is we will continue to strengthen and focus on in the coming
created when all these capitals reinforce each other. year.
During the reporting year, we made significant progress on Summary of CSR spend for financial year 2019-20 is provided
our goals through our extensive network of nearly 200 civil in the following pages.
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Annual Report 2019-20
Corporate Overview | Management & Board Reports | Financial Statements
Summary of Corporate Social Responsibility (CSR) spend for the financial year 2019-20
1. A brief outline of the Company’s CSR policy, including overview of the projects or programs proposed to be undertaken is
available at www.wipro.com.
2. The Composition of the CSR Committee: The terms of reference of CSR broadly comprises and forms part of Board
Governance, Nomination and Compensation Committee and these terms of reference are in accordance with Section 135
of the Companies Act, 2013. The Committee comprises of Mr. William Arthur Owens, Mrs. Ireena Vittal and Mr. M. K. Sharma,
Independent Directors.
3. Average Net Profit of the Company for the last three financial years: ` 83,442 million
4. Prescribed CSR Expenditure (two percent of the amount as in the point 3 above): 2% of the average PBT for the last three
preceding financial years amounts to `1,669 million. Against this, our CSR spending for 2019-20 was ` 1,818 million.
5. Details of the CSR Spent during the financial year:
a) Total amount to be spent for the financial year: ` 1,669 million
b) Amount unspent: Not Applicable
c) Manner in which the amount is spent during the financial year is detailed below.
6. The following table provides a summary of the domain wise expenditure on CSR for the financial year 2019-20 along with the
geographies. The list of partners with whom we collaborate is available after the table.
7. In the column ‘Cumulative expenditure till reporting period’, we have chosen to take 2014-15 as the base year. It is however
not to be interpreted that this is the first year of our CSR programs. Many of our programs go back more than 10 years and
some more than 15 years. Given the practical challenges in reporting the cumulative expenditure from inception, we have
chosen to start with 2014-15 as the base year.
8. All our programs are executed and implemented through our partners. The figures under the last column therefore are
entirely through our partners.
(` in Million)
Amount
Cumulative Cumulative
Outlay Amount Amount spent:
Sector in which Projects or Programs 1) Local area or other expenditure expenditure
(Budget) spent on the direct or through
Sl. No. CSR project or activity identified the project is 2) specify the state and district where the project or up to Previous up to
Project or Projects or implementing
covered programs are undertaken reporting reporting
Program Programs agency
period period
Wise
1 Providing preventive and curative Community Tuensang (Nagaland), Mumbai, Pune (Maharashtra), 15 12 35 47 12
health services with specific focus on Healthcare Mysore (Karnataka), Gurugram, Delhi (NCR), Kolkata
malnutrition and infant mortality rate (West Bengal)
2 Education for Underprivileged in Education for Mumbai, Pune (Maharashtra), Bangalore (Karnataka), 70 15 116 130 15
proximate communities Underprivileged Hyderabad (Telangana), Kolkata (West Bengal),
New Delhi, Dimapur (Nagaland), Tawang (Arunachal
Pradesh), Chennai, Coimbatore (Tamil Nadu)
Systemic reform initiatives in school Education: Ahmedabad (Gujarat), Akola (Maharashtra), Aligarh 90 85 382 467 85
education in India, in the areas of Systemic (UP), Alipurduar (West Bengal), Ambala (Haryana),
ecology, social science, languages Reforms Andaman and Nicobar Islands, Ayodhya (UP), Baghpat
and affective education, material (UP), Banda (UP), Bangalore (Karnataka), Bantahazam
development, public advocacy, (Jharkhand), Bhopal (Madhya Pradesh), Bhubaneshwar
assessment reform, teacher capacity (Odisha), Champawat (Uttarakhand), Chennai (Tamil
building, strengthening the school Nadu), Chhindwara (Madhya Pradesh), Dantewada
system through community and (Chattisgarh), Delhi), Dewas (Madhya Pradesh), Goa),
systemic engagement Gopalganj (Bihar), Guwahati (Assam), Harda (Madhya
Pradesh), Haveri (Karnataka), Hyderabad (Telangana),
Indore (Madhya Pradesh), Jaipur (Rajasthan), Jalgaon
(Maharashtra), Jalpaiguri (West Bengal), Jamui and
Munger( Bihar), Karnal (Haryana), Kerala), Khandwa
(Madhya Pradesh), Kiphire (Nagaland), Kolhapur
(Maharashtra), Kolkata (West Bengal), Koppal
(Karnataka), Lucknow (UP), Majuli (Assam), Mewat
(Haryana), Mumbai (Maharashtra), NCR), Palampur
(Himachal Pradesh), Rayagada (Odisha), Rudraprayag
(Uttarakhand), Saharsa (Bihar), Samalkha (Haryana),
Sambalpur (Odisha), Seoni (Madhya Pradesh), Sirohi
(Rajasthan), Sonbhadra (UP), Sonepur (Odisha), South
24 Parganas (West Bengal), Spiti (Himachal Pradesh),
Sukma (Chattisgarh), Sundergarh (Odisha), Ukhrul
(Manipur)
95
Wipro Limited
Amount
Cumulative Cumulative
Outlay Amount Amount spent:
Sector in which Projects or Programs 1) Local area or other expenditure expenditure
(Budget) spent on the direct or through
Sl. No. CSR project or activity identified the project is 2) specify the state and district where the project or up to Previous up to
Project or Projects or implementing
covered programs are undertaken reporting reporting
Program Programs agency
period period
Wise
Initiatives in Education of children with Education for Delhi (Delhi), Hyderabad (Telangana), Jaipur 17 17 110 127 17
Disability Children with (Rajasthan), Mumbai, Pune (Maharashtra), Bangalore,
Disability Hubli-Dharwad and Koppal (Karnataka)
Initiatives in sustainability education in Sustainability 79 districts in 29 states and 3 Union Territories of 35 32 138 170 32
schools and colleges across India Education India
Program of higher education in Higher Education 1,000 1,167 5,136 6,303 1,167
engineering and technology linked to for skills building Bangalore (Karnataka)
skills development for the IT industry
Initiatives in improving education in Engineering 10 5 18 23 5
All parts of India
engineering colleges in India Education
3 Ensuring environmental sustainability, Water Bangalore (Karnataka), Pune (Maharashtra) 7 5 25 30 5
ecological balance
Biodiversity Bangalore (Karnataka), Pune (Maharashtra) 2 1 30 32 1
Energy Bangalore (Karnataka), Pune (Maharashtra), 500 444 2,342 2,786 444
Hyderabad (Telangana), Chennai (Tamil Nadu)
Waste Bangalore, Mysore (Karnataka) 2 2 9 12 2
Management
Sustainability Bangalore (Karnataka), Balashore (Odisha), 20 17 89 105 17
Advocacy and Bhubaneshwar (Odisha), Chennai (Tamil Nadu),
Research New Delhi(NCR), Hyderabad(Telangana),
Pune(Maharashtra), Chikmagalur (Karnataka),
Guwahati (Assam), Kurnool (Kerala), Koraput (Odisha).
4 Rural Development projects Rural livelihood Cuddalore, Coimbatore (Tamil Nadu), Ernakulam, 8 7 21 28 7
programs Alappuzha (Kerala), Puri (Odisha)
5 Providing humanitarian aid and Disaster relief Delhi (NCR), Bangalore (Karnataka) 14 9 - 9 9
preventive health care and sanitation
Total 1,790 1,818 8,451 10,269 1,818
9. A responsibility statement of the CSR Committee that the implementation and monitoring of CSR Policy is in compliance
with CSR objectives and policy of the Company: Yes, it is in compliance with CSR Policy and Objectives of the Company.
Sd/- Sd/-
Rishad A. Premji William Arthur Owens
(Chairman) (Chairman of Board Governance,
Nomination and Compensation Committee)
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97
Wipro Limited
B. Organizations funded through seeding fellowships Sl
Name of the Organization Location
Sl No.
Name of the Organization Location
No. 43 SwaTaleem Foundation Mewat, Haryana
1 Humane Koraput, Odisha 44 Swatantra Talim Lucknow, Sitapur, Uttar
2 In Season Fish Chennai, Tamil Nadu Pradesh
3 VIVASWA Kurnool, Andhra Pradesh 45 Tarkeybein Baghpat, Uttar Pradesh
4 Adhvan Mumbai, Maharashtra 46 Thrive Foundation Chennai, Tamil Nadu
5 Agrini Samaj Kalyan Samiti Seoni, Madhya Pradesh 47 Umoya Sports New Delhi, Gurgaon, Haryana
6 Amma Social Welfare Association (ASWA) Shadnagar, Telangana 48 Universe Simplified Foundation Mumbai, Maharashtra
7 Antraal Theatre New Delhi 49 Upkram Sonbhadra, Uttar Pradesh
8 Art of Play Foundation North Delhi, East Delhi, South 50 Vardishnu Amalner, Maharashtra
Delhi (New Delhi), Faridabad 51 Varitra Foundation Karnal, Haryana
(Haryana), Jhunjhunu
52 Vidhya Vidhai Foundation Chennai, Tamil Nadu
(Rajasthan), Solan (Himachal
Pradesh) 53 Vidyodaya Kolhapur, Maharashtra
9 Awadh Peoples Forum Faizabad, New Delhi, Uttar 54 Virasat-E-Hind Bhubaneswar, Odisha
Pradesh 55 Vision Empower Bangalore , Ramngagara,
10 Barefoot Edu Foundation Mumbai, Maharashtra Mysuru, Davangare,
11 Better Education Lifestyle and Environment Pune, Maharashtra Shivamogga, Kalaburagi,
Foundation (BELIEF) Chikmaglur, Karnataka
12 Gramothhan Sonepur, Odisha 56 We, The People Abhiyan New Delhi, Gurgaon (Haryana)
13 Had Anhad Indore, Madhya Pradesh C. Program support partners (not funded through grants)
14 Happy Horizons Trust Saharsa, Bihar
15 Inquilab Inventions Foundation Hyderabad, Telangana Sl
Name of the Organization Location
No.
16 I-Saksham Jamui, Bihar
1 Arunachal State Council for Science & Technology Itanagar, Arunachal Pradesh
17 Kanavu Cuddalore, Tamil Nadu
18 Key Education Foundation Bangalore, Karnataka 2 Assam State Council for Science & Technology Guwahati, Assam
19 Khel Khel Mein Foundation Delhi-NCR 3 Delhi State Environment Education Department Delhi
20 Kshamtalaya East Delhi (New Delhi), Udaipur 4 Himachal State Council for Science & Technology Simla, Himachal Pradesh
(Rajasthan)
Madhya Pradesh Environmental Planning and
21 Let’s Educate Children in Need (LECIN) South Delhi, Delhi 5 Bhopal, Madhya Pradesh
Coordination Organization
22 Lets Open a Book Spiti valley, Lahaul and Spiti,
Himachal Pradesh 6 Meghalaya State Council for Science & Technology Shillong, Meghalaya
23 Library for All Ukhrul, Imphal, Manipur 7 Mizoram State Council for Science & Technology Aizawl, Mizoram
24 Loop Education Foundation Hyderabad, Telangana 8 Nagaland State Council for Science & Technology Kohima, Nagaland
25 Manzil Mystics South Delhi, New Delhi 9 Sikkim ENVIS and Forest Department Gangtok, Sikkim
26 Mil Ke Chalo Association Amalner, Maharashtra
10 Tripura State Council for Science & Technology Agartala, Tripura
27 Mobile Pathshala in Sunderbans Kumirmari 24, South
Paraganas, 11 Carbon Disclosure Project India (CDP) Delhi
28 Musht Khandwa, Madhya Pradesh Center for Study of Science, Technology and Policy
12 Bangalore Urban, Karnataka
29 North East Education Trust Guwahati, Assam (CSTEP)
30 Pi Jam Foundation Pune, Maharashtra Small-Scale Sustainable Infrastructure Development
13 Bangalore Urban, Karnataka
31 Pratyaya EduResearch Lab Pandhurna, Chhindwara, Fund (S3IDF)
Madhya Pradesh 14 World Resources Institute (WRI) Mumbai, Maharashtra
32 Professionals Alliance for Youths Growth (PRAYOG) Gopalganj, Bihar
Sanquelim, North Goa district,
33 Recognize, Rise and Empower Association (RREA) Kamjong, Manipur 15 Goa Institute of Management
Goa
34 Sahodaya Trust Kohabari, Gaya, Bihar
16 IIM Kozhikode Kozhikode, Kerala
35 Sajag Mumbai, Maharashtra
17 NIT Trichy Trichy, Tamil Nadu
36 Samait Shala Ahmedabad, Gujarat
37 Sanjhi Sikhiya Fatehgarh Sahib, Punjab 18 TERI School of Advanced Studies Delhi
38 School Social Science Initiative Bhubaneswar, Odisha 19 Confederation of Indian Industry (CII) Delhi
39 Self Reliant India (SRI) Rewari, Haryana 20 Government of Karnataka Bengaluru Urban, Karnataka
40 Shiksharth Trust Sukma, Chhattisgarh 21 Eklavya Foundation Bhopal, Madhya Pradesh
41 Simple Education Foundation South Delhi (Delhi), Tehri
22 Takshila Educational Society Bhopal, Madhya Pradesh
Garhwal (Uttarakhand)
42 Sinchan Chakai, Jamui, Bihar 23 Teacher Plus Hyderabad, Telangana
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Annexure VI
Form No. MGT-9
EXTRACT OF ANNUAL RETURN
as on the financial year ended March 31, 2020
[Pursuant to Section 92(3) of the Companies Act, 2013 and Rule12(1) of the Companies
(Management and Administration) Rules, 2014]
i CIN L32102KA1945PLC020800
ii Registration Date December 29, 1945
iii Name of the Company Wipro Limited
iv Category/Sub-Category of the Company Public Limited Company - Limited by Shares, Indian Non-Government Company
v Address of the Registered office and Wipro Limited, Doddakannelli, Sarjapur Road, Bengaluru – 560 035
contact details Ph: 080-28440011, Fax: 080-28440054
Website: www.wipro.com
Email: corp-secretarial@wipro.com
vi Whether listed company Yes
vii Name, Address and Contact details of KFin Technologies Private Limited,
Registrar and Transfer Agent, if any Selenium Tower B, Plot 31-32, Gachibowli, Financial District, Nanakramguda,
Hyderabad – 500 032
Contact Person:
Mr. B Srinivas, Manager
Tel: 040-67162222
Fax: 040-2300 1153
Email: srinivas.b@kfintech.com
99
Wipro Limited
Sl. Name of the Address of the CIN/GLN Holding/ % of Applicable
No. Company Company Subsidiary/ shares Section
Associate held
8 Wipro Japan KK 2-2-1, Minato-Mirai, Nishi-ku, Yokohama N/A Subsidiary 100 2(87)
9 Wipro Shanghai Limited Room 156, 1st Floor, Changxing Building, NO.888 N/A Subsidiary 100 2(87)
Bibo Road, Pudong District, Shanghai
10 Wipro Information Technology Hoogoorddreef 15, 1101BA Amsterdam, The N/A Subsidiary 100 2(87)
Netherlands BV Netherlands
11 Wipro Chengdu Limited Room 205#-209#, 304#-308, Floor2-3 of northern N/A Subsidiary 100 2(87)
part of Building D2, Tianfu Software Park, No.
599, South Shi Ji Cheng Road, Chengdu High-tech
District, Sichuan
12 Wipro (Thailand) Co. Limited 152, Chartered Square Building, Unit 17-02B, N/A Subsidiary 100 2(87)
North Sathorn Road, Kwaeng Silom, Khet Bangrak,
Bangkok, Thailand
13 Wipro Technologies Limited 127473, Moscow city, Krasnoproletarskaya street, N/A Subsidiary 100 2(87)
dom 16, building 1, pom I et 4 ko 3 (part), Russia
14 Wipro Technologies Australia 1198 Toorak Road, Camberwell VIC 3124, Australia N/A Subsidiary 100 2(87)
Pty Ltd.
15 PT WT Indonesia Menara BCA 50th Floor, Jl. M.H Thamrin No. 1, N/A Subsidiary 100 2(87)
Jakarta Pusat, Indonesia
16 Wipro Travel Services Limited Sarjapur Road, Doddakannelli, Bengaluru - 560035, U91200KA1996PLC020622 Subsidiary 100 2(87)
India
17 Wipro Trademarks Holding Sarjapur Road, Doddakannelli, Bengaluru - 560035, U93090KA1982PLC021795 Subsidiary 100 2(87)
Limited India
18 Wipro Networks Pte Limited 31 Cantonment Road, Singapore 089747 N/A Subsidiary 100 2(87)
19 Wipro Technologies SDN BHD Suite 702, 7th Floor, Wisma Hangsam, Jalan Hang N/A Subsidiary 100 2(87)
Lekir, 50000 Kuala Lumpur, Malaysia
20 Wipro Philippines, Inc. Cebu IT Tower 1, Lot 7 corner Archbishop Reyes N/A Subsidiary 100 2(87)
and Mindanao St. Cebu Business Park, Cebu City,
Phillippines
21 Wipro Information Technology 7, Azattyk Ave., Atyrau city, Kazakhstan N/A Subsidiary 100 2(87)
Kazakhstan LLP
22 Wipro IT Services Ukraine, LLC Shovkovychna street, 42-44, office 317, Kyiv, N/A Subsidiary 100 2(87)
Ukraine, 01601
23 Wipro Arabia Co. Limited P.O. Box 31349, Jarir Complex, Al Khobar 31952, N/A Subsidiary 100 2(87)
Kingdom of Saudi Arabia
24 Women’s Business Park PO Box 47033, Riyadh 11552, Kingdom of Saudi N/A Subsidiary 100 2(87)
Technologies Limited Arabia
25 Wipro Information Technology B-124, Smart Village, Cairo-Alex Desert Road, Giza, N/A Subsidiary 100 2(87)
Egypt SAE(a) Egypt
26 Wipro Bahrain Limited Co. S.P.C Seef Business Centre Building, #2795 5th Floor, # N/A Subsidiary 100 2(87)
510 Road 2835 , Kingdom of Bahrain
27 Wipro Gulf LLC P.O.Box 137, Postal Code 112,Sultanate of Oman N/A Subsidiary 100 2(87)
28 Wipro Doha LLC Servcorp, Level 22, Tomado Tower, West Bay, Doha N/A Subsidiary 100 2(87)
29 Rainbow Software LLC D603, St.14, Building 43, Al Mansour, Baghdad, Iraq N/A Subsidiary 100 2(87)
30 Wipro Technologies SA DE CV Avenida Insurgentes Sur 1271, piso 11, Col. N/A Subsidiary 100 2(87)
Extremadura Insurgentes, Alc. Benito Juárez, Ciudad
de México, Mexico C.P. 03740
31 Wipro Do BrasilTechnologia João Marchesini street, No. 139 - 5th and 6th floor N/A Subsidiary 100 2(87)
LTDA Post Code: 80215-432 Curitiba/Parana – Brazil
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38 Wipro Technologies Chile SPA IsidoraGoyenechea 3000 of 1701, Las Condes N/A Subsidiary 100 2(87)
Santiago, Chile.
39 Wipro Poland SP Z.O.O Al.Jerozolimskie 123a, 02-017 Warszawa, Poland N/A Subsidiary 100 2(87)
40 Wipro IT Services Poland SP Al.Jerozolimskie 123a, 02-017 Warszawa, Poland N/A Subsidiary 100 2(87)
Z.O.O
41 Wipro Portugal SA Rua Eng. Frederico Ulrich, 2650, 4470-605 Moreira, N/A Subsidiary 100 2(87)
parish of Moreira, municipality of Maia, Portugal
42 Wipro Technologies SRL 169A, Floreasca Business Park, N/A Subsidiary 100 2(87)
Calea Floreasca, Sector 1, 014459, Bucharest
43 Wipro Technologies GmbH Hamburger Allee 2-4 (West Gate), N/A Subsidiary 100 2(87)
60486 Frankfurt am Main, Germany
44 Cellent GmbH Ringtrabe, 70, 70736 Fellbach, Germany N/A Subsidiary 100 2(87)
45 Cellent GmbH Lassallestraße 7b,1020 Vienna, Austria N/A Subsidiary 100 2(87)
46 Designit A/S Bygmestervej 61, 2400 Copenhagen NV, Denmark N/A Subsidiary 100 2(87)
47 Designit Denmark A/S Bygmestervej 61, 2400 Copenhagen NV, Denmark N/A Subsidiary 100 2(87)
48 Designit Germany GmbH Gabrielenstrasse 9, 80636 Munich N/A Subsidiary 100 2(87)
49 Designit Spain Digital S.L Calle Joaquin Maria Lopez, Num. 8 Bis, Planta Bj, N/A Subsidiary 100 2(87)
28015 Madrid
50 Designit Colombia S A S Carrera 48 20 114 Centro Empresarial Ciudad del N/A Subsidiary 100 2(87)
Rio, Torre 2, Oficina 0921, Medellín, Colombia
51 Designit Peru SAC Av. Alberto del Campo 409, Oficina 503 N/A Subsidiary 100 2(87)
Distrito Magdalena del Mar, Lima, Peru
52 Designit Oslo A/S Akkersbakken 12, 0172 Oslo, Norway N/A Subsidiary 100 2(87)
53 Designit Sweden AB Gustavslundsvägen 143, 167 51, Bromma, Sweden N/A Subsidiary 100 2(87)
54 Designit T.L.V Limited 18 Raoul Wallenberg Street, Tel Aviv, Israel N/A Subsidiary 100 2(87)
55 Designit Tokyo Co., Limited The Park Rex KoamichoBldg 8F, 11-8 N/A Subsidiary 100 2(87)
KoamichoNihombashi Chuo-ku Tokyo 103-0016
56 Wipro IT Services SE (Formerly Kings Court, 185 Kings Road, Reading, Berkshire, N/A Subsidiary 100 2(87)
known as Wipro Cyprus SE) RG1 4EX, United Kingdom
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Wipro Limited
Sl. Name of the Address of the CIN/GLN Holding/ % of Applicable
No. Company Company Subsidiary/ shares Section
Associate held
57 Wipro Holdings Hungary 1143 Budapest, Stefániaút 101-103, Hungary N/A Subsidiary 100 2(87)
KorlátoltFelelősségűTársaság
58 Wipro Holdings Investment 1143 Budapest, Stefániaút 101-103, Hungary N/A Subsidiary 100 2(87)
KorlátoltFelelősségűTársaság
59 Wipro Outsourcing Services Dromore House, # 3rd Floor, Eastpark Business N/A Subsidiary 100 2(87)
(Ireland) Limited Centre, Shannon , Co. Clare, Ireland
60 Wipro Holdings (UK) Limited Devonshire House, 60 Goswell Road, London,EC1M N/A Subsidiary 100 2(87)
7AD, United Kingdom
61 Wipro Europe Limited Devonshire House, 60 Goswell Road, London,EC1M N/A Subsidiary 100 2(87)
7AD, United Kingdom
62 Wipro UK Limited Devonshire House, 60 Goswell Road, London,EC1M N/A Subsidiary 100 2(87)
7AD, United Kingdom
63 Wipro Financial Services UK Devonshire House, 60 Goswell Road, London, United N/A Subsidiary 100 2(87)
Limited Kingdom, EC1M 7AD
64 Wipro IT Services S.R.L Bucharest, 4th District, 133 CaleaSerbanVoda, N/A Subsidiary 100 2(87)
Central Business Park, Building A, groundfloor,
Section A.P.32, Romania
65 Wipro Technologies South The Forum, 10 th Floor Office 162 Maude Street, N/A Subsidiary 100 2(87)
Africa (Proprietary) Limited Sandton, 2198 Johannesburg, South Africa
66 Wipro Technologies Nigeria 7th Floor, Mulliner Towers, 39 Alfred Rewane Road, N/A Subsidiary 100 2(87)
Limited (Kingsway Road), Ikoyi Lagos, Nigeria
67 Wipro Corporate Technologies No. 9 Carrot Avenue, East Legon – Accra, N/A Subsidiary 100 2(87)
Ghana Ltd Ghana
68 Wipro (Dalian) Limited D7, Spring-Field Park, Ganjingzi District, N/A Subsidiary 100 2(87)
Dalian, China
69 Wipro Overseas IT Services Sarjapur Road, Doddakannelli, U72200KA2015PTC080266 Subsidiary 100 2(87)
Private Limited Bengaluru - 560035,India
70 Healthplan Services Insurance 3501 E Frontage Rd, Tampa, FL 33607, USA N/A Subsidiary 100 2(87)
Agency, LLC
71 Healthplan Services, Inc. 3501 E Frontage Rd, Tampa, FL 33607, USA N/A Subsidiary 100 2(87)
72 Appirio, Inc. 201 S. Capitol Ave., #1100 Indianapolis, N/A Subsidiary 100 2(87)
IN 46225, USA
73 Cooper Software,LLC 85 2nd Street, 8th Floor San Francisco, N/A Subsidiary 100 2(87)
CA 94105, USA
74 Infocrossing, LLC 425 National Ave STE 200, Mountain View, N/A Subsidiary 100 2(87)
CA 94043, USA
75 Wipro US Foundation 251, Little Falls Drive, Wilmington, country of New N/A Subsidiary 100 2(87)
Castle, Delware19908
76 Appirio, K.K METLIFE Aoyama Building 8F, 2-11-16, Minami N/A Subsidiary 100 2(87)
Aoyama, Minato-ku, Tokyo, Japan
77 Topcoder, LLC 251 Little Falls Drive, Wilmington - 19808-1674 N/A Subsidiary 100 2(87)
78 Appirio Limited First Floor Block D, Iveagh Court, Harcourt Road, N/A Subsidiary 100 2(87)
Dublin 2, Ireland
79 Appirio Limited Longcraft House, 2-8 Victoria Avenue, London, N/A Subsidiary 100 2(87)
EC2M4NS, UK
80 Wipro IT Services Bangladesh Grand Delvista, Level 04, Plot 1A, Gulshan Avenue, N/A Subsidiary 100 2(87)
Limited Gulshan, Dhaka-1212, Bangladesh
81 Wipro HR Services India Private SJP-1, D Block, A Wing, Second Floor, U74999KA2016PTC129059 Subsidiary 100 2(87)
Limited Doddakannelli, Sarjapur Road, Bengaluru-560035
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(a)
Wipro Information Technology Egypt SAE has been put into liquidation with effect from September 30, 2016.
(b)
Rational Interaction, Inc., Rational Consulting Australia Pty Ltd. and Rational Interaction Limited were acquired on February 21, 2020.
(c)
International TechneGroup Incorporated, International TechneGroup Ltd., ITI Proficiency Ltd., International Technegroup S.R.L. and
MechWorks S.R.L. were acquired on October 3, 2019.
Frontworx Informationstechnologie GmbH was merged with and into Cellent GmbH, Austria with effect from August 22, 2019. Therefore,
particulars of the entity are not included in the above list.
Appirio GmbH was liquidated with effect from January 22, 2020. Therefore, particulars of the entity are not included in the above list.
Digital Aps was merged with and into Designit A/s with effect from March 16, 2020. Therefore, particulars of Digital Aps are not included in
the above list.
Wipro Retail UK Limited was dissolved with effect from July 23, 2019. Therefore, particulars of the entity are not included in the above list.
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IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)
i. Category-wise Share Holding
Category Category of No. of shares held at the beginning of the year No. of shares held at the end of the year %
Code Shareholder (April 01, 2019) (March 31, 2020) Change
Demat Physical Total % of Total Demat Physical Total % of Total during
shares shares the year
PROMOTER AND PROMOTER
(A)
GROUP
1 INDIAN
(a) Individual /HUF 254,451,816 - 254,451,816 4.22 241,913,816 - 241,913,816 4.23 0.01
Central Government/State
(b) - - - - - - - - -
Government(s)
(c) Bodies Corporate (Promoter
in his capacity as Director of
22,309,537 - 22,309,537 0.37 21,175,812 - 21,175,812 0.37 0.00
Private Limited/Section 25
Companies)
(d) Financial Institutions /
- - - - - - - - -
Banks
(e) Any Other -Partnership firms
(Promoter in his capacity as 3,381,286,878 - 3,381,286,878 56.04 3,209,456,718 - 3,209,456,718 56.17 0.13
partner of Partnership firms)
(f) Others - Trust 797,948,834 - 797,948,834 13.22 757,398,687 - 757,398,687 13.26 0.04
Sub-Total A(1) 4,455,997,065 - 4,455,997,065 73.85 4,229,945,033 - 4,229,945,033 74.04 0.19
2 FOREIGN
(a) Individuals (NRIs/Foreign
- - - - - - - - -
Individuals)
(b) Bodies Corporate - - - - - - - - -
(c) Institutions - - - - - - - - -
(d) Qualified Foreign Investor - - - - - - - - -
(e) Others - - - - - - - - -
Sub-Total A(2) : - - - - - - - - -
Total A=A(1)+A(2) : 4,455,997,065 - 4,455,997,065 73.85 4,229,945,033 - 4,229,945,033 74.04 0.19
(B) PUBLIC SHAREHOLDING
1 INSTITUTIONS
(a) Mutual Funds/UTI 94,005,955 - 94,005,955 1.56 80,903,316 - 80,903,316 1.42 (0.14)
(b) Financial Institutions /Banks 29,674,597 - 29,674,597 0.49 40,300,081 - 40,300,081 0.71 0.22
Central Government / State
(c) - - - - - - - - -
Government(s)
(d) Venture Capital Funds - - - - - - - - -
(e) Insurance Companies 267,932,933 - 267,932,933 4.44 278,750,138 - 278,750,138 4.88 0.44
Foreign Institutional
(f) 538,940,494 - 538,940,494 8.94 482,637,533 - 482,637,533 8.45 (0.49)
Investors
Foreign Venture Capital
(g) - - - - - - - - -
Investors
(h) Qualified Foreign Investor - - - - - - - - -
(i) Others -Alternate
Investment Fund & Qualified 528,918 - 528,918 0.01 22,358,046 - 22,358,046 0.39 0.38
Institutional Buyer
Sub-Total B(1) 931,082,897 - 931,082,897 15.44 904,949,114 - 904,949,114 15.84 0.40
2 NON-INSTITUTIONS
(a) Bodies Corporate 126,246,943 110,455 126,357,398 2.09 48,739,941 85,513 48,825,454 0.85 (1.24)
(b) NBFCs Registered with RBI 661,552 - 661,552 0.01 54,233 - 54,233 0.00 (0.01)
Overseas Corporate Bodies - - - - - - - - -
Individuals
(i) Individuals holding
nominal share capital upto 99,179,142 1,127,021 100,306,163 1.66 121,926,209 853,654 122,779,863 2.15 0.49
` 1 lakh
(ii) Individuals holding
nominal share capital in 195,849,721 11,021,921 206,871,642 3.43 189,302,519 7,824,590 197,127,109 3.45 0.02
excess of ` 1 lakh
(c) Qualified Foreign Investor - - - - - - - - -
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Corporate Overview | Management & Board Reports | Financial Statements
Category Category of No. of shares held at the beginning of the year No. of shares held at the end of the year %
Code Shareholder (April 01, 2019) (March 31, 2020) Change
Demat Physical Total % of Total Demat Physical Total % of Total during
shares shares the year
(d) Others
NON-RESIDENT INDIANS 32,136,878 272 32,137,150 0.54 31,236,530 272 31,236,802 0.55 0.01
IEPF 1,706,952 - 1,706,952 0.03 1,742,712 - 1,742,712 0.03 0.00
Foreign Bodies - DR 88,748 - 88,748 0.00 84,239 - 84,239 0.00 0.00
TRUSTS
(a) Wipro Equity Reward
27,353,853 - 27,353,853 0.45 22,746,081 - 22,746,081 0.40 (0.05)
Trust *
(b) Other Trusts 9,771,422 - 9,771,422 0.16 12,108,585 - 12,108,585 0.21 0.05
Non-Executive Directors
and Executive Directors & 4,978 - 4,978 0.00 - - - - -
Relatives
CLEARING MEMBERS 4,303,891 - 4,303,891 0.07 1,970,363 - 1,970,363 0.03 (0.04)
FOREIGN NATIONAL 56,924 - 56,924 0.00 56,924 - 56,924 0.00 0.00
Sub-Total B(2) : 497,361,004 12,259,669 509,620,673 8.44 429,968,336 8,764,029 438,732,365 7.68 (0.76)
Total B=B(1)+B(2) : 1,428,443,901 12,259,669 1,440,703,570 23.88 1,334,917,450 8,764,029 1,343,681,479 23.52 (0.36)
Total (A+B) : 5,884,440,966 12,259,669 5,896,700,635 97.73 5,564,862,483 8,764,029 5,573,626,512 97.55 (0.18)
(C) Shares held by custodians, against which Depository Receipts have been issued
Promoter and Promoter
(1) - - - - - - - - -
Group
(2) Public 137,234,753 - 137,234,753 2.27 139,730,878 - 139,730,878 2.45 0.18
GRAND TOTAL (A+B+C): 6,021,675,719 12,259,669 6,033,935,388 100.00 5,704,593,361 8,764,029 5,713,357,390 100.00
* Shares held by Wipro Equity Reward Trust are classified as non-promoter non-public shareholding as per the provisions of
SEBI (Share Based Employee Benefits) Regulations, 2014.
Percentage of shareholding in the above table have been subject to rounding-off adjustments.
Percentage of shareholding in the above table have been subject to rounding-off adjustments.
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iii. Change in Promoters’ Shareholding (please specify, if there is no change)
Sl. Shareholder’s Name Shareholding at the beginning Increase/Decrease in Cumulative Shareholding during the
No. of the year (April 1, 2019) Shareholding year
No. of shares % of total Date Reason No. of Shares % total No. of Shares % total shares
shares of the shares of the of the
company Company Company(3)
At the beginning of the year 4,455,997,065 73.85
(April 1, 2019)
Date wise Increase /
Decrease in Promoters
Shareholding during the
year specifying the reasons
for increase/ decrease
(e.g. allotment / transfer /
bonus/ sweat equity etc):
1 Azim H. Premji 249,080,265 4.13 09-09-19 Buyback (12,265,031 ) (0.21) 236,815,234 4.14
2 Yasmeen A Premji 2,833,776 0.05 09-09-19 Buyback (144,006) (0.00) 2,689,770 0.05
3 Rishad A. Premji 18,31,109 0.03 09-09-19 Buyback (93,052 ) (0.00) 1,738,057 0.03
4 Tariq A Premji 7,06,666 0.01 09-09-19 Buyback (35,911) (0.00) 670,755 0.01
5 Mr. Azim H. Premji Partner 989,215,999 16.39 09-09-19 Buyback (50,269,956) (0.88) 938,946,043 16.43
representing Hasham
Traders
6 Mr Azim Hasham Premji 1,187,751,441 19.68 09-09-19 Buyback (60,359,126) (1.06) 1,127,392,315 19.73
Partner Representing
Prazim Traders
7 Mr Azim Hasham Premji 1,204,319,438 19.96 09-09-19 Buyback (61,201,078 ) (1.07) 1,143,118,360 20.01
Partner Representing Zash
Traders
8 Hasham Investment and 1,501,328 0.02 09-09-19 Buyback (76,294) (0.00) 1,425,034 0.02
Trading Co Private Limited
9 Azim Premji Trust (1) 797,948,834 13.32 09-09-19 Buyback (40,550,147) (0.71) 757,398,687 13.26
10 Azim Premji Philanthropic 20,808,209 0.34 09-09-19 Buyback (1,057,431) (0.02) 19,750,778 0.35
Initiatives Private Limited(2)
At the End of the year 4,229,945,033 74.04
(March 31, 2020)
(1)
Mr. Azim H. Premji disclaims the beneficial ownership of shares held by Azim Premji Trust.
(2)
Mr. Azim H. Premji disclaims the beneficial ownership of shares held by Azim Premji Philanthropic Initiatives Private Limited.
(3)
Percentage change in shareholding of promoters and promoter group at the end of the year is as a result of respective participation in
the buyback, overall reduction of paid-up share capital consequent to buyback and dilution on account of allotment of equity shares to
employees pursuant to exercise of stock options.
iv. Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of ADRs):
Sl. For Each of the Top 10 Shareholders Shareholding at the beginning of the year Cumulative Shareholding
No. during the year (2019-20)
No. of shares % of total shares of No. of % of total shares
the Company shares of the Company
1 At the beginning of the year
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Corporate Overview | Management & Board Reports | Financial Statements
V. INDEBTEDNESS
Indebtedness of the Company including interest outstanding/accrued but not due for payment.
(` in Million)
Secured Loans Total
Unsecured Loans Deposits
excluding deposits Indebtedness
Indebtedness at the beginning of the financial year
i) Principal Amount 596 50,683 - 51,279
ii) Interest due but not paid - - - -
iii) Interest accrued but not due - 35 - 35
Total (i+ii+iii) 596 50,718 - 51,314
Change in Indebtedness during the financial year
l Addition - 102,509 - 102,509
l Reduction - 106,836 - 106,836
Reclassification to Lease Liabilities on adoption of Ind AS 116 (596) - - (596)
ERF (Gain)/Loss for foreign currency loans - 4,103 - 4,103
Net Change (596) (224) - (820)
Indebtedness at the end of the financial year
i) Principal Amount - 50,459 - 50,459
ii) Interest due but not paid - - - -
iii) Interest accrued but not due - 23 - 23
Total (i+ii+iii) - 50,482 - 50,482
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VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL
A. Remuneration to Managing Director, Whole Time Directors and/or Manager
(` in Crores)
Sl. Particulars of Remuneration Name of MD/WTD/Manager
No. Rishad A. Premji(1)(4) Abidali Z Azim H. Premji (4)(5)
Neemuchwala (2)(3)
1 Gross salary
(a) Salary as per provisions contained in section 17(1) of the 1.31 7.64 0.10
Income-tax Act, 1961
(b) Value of perquisites u/s 17(2) Income-tax Act, 1961 0.98 - 0.72
(c) Profits in lieu of salary under section 17(3) - - -
Income-Tax Act, 1961
2 Stock Options - 15.45 -
3 Sweat Equity - - -
4 Commission
- as % of net profits - - -
- others - - -
5 Others-Variable Pay - 9.15 -
6 Allowances & Other Annual Compensation 2.50 - 0.04
7 Retirals 0.35 0.03 0.16
Total (A) 5.15 32.28 1.02
` 1,117 (being 10% of Net Profits of the Company as calculated
Ceiling as per the Companies Act, 2013
under Section 198 of the Companies Act, 2013)
(1)
Mr. Rishad A. Premji’s compensation also included cash bonus (part of his allowances) on an accrual basis, which is payable over a period
of time.
(2)
Figures mentioned in ` are equivalent of amounts paid in US $.
(3)
The Company announced on January 31, 2020 that Mr. Abidali Z. Neemuchwala has resigned from the position of Chief Executive
Officer and Managing Director due to family commitments and will, however, continue to hold the office of Chief Executive Officer and
Managing Director until a successor is appointed. The Board of Directors has, at its meeting held on May 29, 2020, noted the resignation of
Mr. Abidali Z. Neemuchwala as the Chief Executive Officer and Managing Director with effect from the end of the day on June 1, 2020.
Compensation for Mr. Abidali Z. Neemuchwala for the year ended March 31, 2020 includes cost of accelerated vesting of unvested options
and variable pay.
(4)
In view of the current situation caused by COVID-19, uncertainty in business is likely to last for the next few months. To show solidarity with
the team in facing the challenge:
• Mr. Azim H. Premji, Founder Chairman, has foregone the profit linked commission payable to him for the relevant period for financial
year 2019-20.
• Mr. Rishad A. Premji, Chairman, has foregone the variable pay and profit linked commission payable to him for the relevant period for
financial year 2019-20.
Accordingly, the Board did not determine profit linked commission due to Mr. Azim H. Premji for FY 2019-20, variable pay and profit
linked commission due to Mr. Rishad A. Premji for financial year 2019-20 and the remuneration disclosed in the table above does not
include the same.
(5)
The executive compensation disclosed for Mr. Azim H. Premji is for the period April 1, 2019 to July 30, 2019. The details of commission
and sitting fees paid to Mr. Azim H. Premji for the period from July 31, 2019 to March 31, 2020 in his capacity as Non-Executive,
Non-Independent Director are provided at Annexure C.
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* Computation of remuneration to the Chief Financial Officer is on an accrual basis and includes the amortization of Restricted Stock Units
(RSUs), granted to him, which will vest over a period of time. This also includes RSUs that will vest based on performance parameters of the
Company.
** Computation of remuneration of Company Secretary includes perquisites value of RSUs exercised during the financial year and does not
include grant of such options.
Figures in the above table have been rounded-off to two decimals.
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Annexure A
SHAREHOLDING PATTERN OF TOP 10 SHAREHOLDERS BETWEEN APRIL 01, 2019 AND MARCH 31, 2020 (OTHER THAN DIRECTORS, PROMOTERS AND
HOLDERS OF GDR AND ADRS)
Sl. Date of Nature of Name of the Share Holder Shareholding at the beginning of Cumulative Shareholding during
No. Transaction Transaction the Year the Year
No of Shares % of total No of Shares % of total shares of
shares of the the Company
company
1 01/04/2019 Opening Balance LIFE INSURANCE 265,166,536 4.39 265,166,536 4.39
12/04/2019 Purchase CORPORATION OF INDIA 38,610,038 0.64 303,776,574 5.03
26/04/2019 Purchase 13,511,002 0.22 290,265,572 4.81
26/04/2019 Sale 13,464,744 0.22 276,800,828 4.59
02/08/2019 Purchase 309,605 0.01 276,491,223 4.58
02/08/2019 Sale 5,880,679 0.10 270,610,544 4.48
13/09/2019 Sale 551,560 0.01 270,058,984 4.73
31/03/2020 Closing Balance 270,058,984 4.73
2 01/04/2019 Opening Balance CUSTODIAN OF ENEMY 45,924,848 0.76 45,924,848 0.76
05/04/2019 Sale PROPERTY FOR INDIA 45,924,848 0.76 - -
31/03/2020 Closing Balance - -
3 01/04/2019 Opening Balance ALCO COMPANY PRIVATE LIMITED 41,866,666 0.69 41,866,666 0.69
13/09/2019 Sale 1,943,760 0.03 39,922,906 0.70
13/03/2020 Purchase 13,333 0.00 39,936,239 0.70
20/03/2020 Purchase 261 0.00 39,936,500 0.70
31/03/2020 Closing Balance 39,936,500 0.70
4 01/04/2019 Opening Balance GOVERNMENT PENSION FUND 28,604,032 0.47 28,604,032 0.47
05/04/2019 Purchase GLOBAL 1,094,889 0.02 29,698,921 0.49
12/04/2019 Purchase 584,789 0.01 30,283,710 0.50
19/04/2019 Purchase 130,820 0.00 30,414,530 0.50
26/04/2019 Sale 292,626 0.00 30,121,904 0.50
03/05/2019 Sale 549,467 0.01 29,572,437 0.49
10/05/2019 Sale 1,218,932 0.02 28,353,505 0.47
17/05/2019 Purchase 1,181,385 0.02 29,534,890 0.49
07/06/2019 Purchase 24,333 0.00 29,559,223 0.49
14/06/2019 Purchase 117,537 0.00 29,676,760 0.49
21/06/2019 Purchase 101,465 0.00 29,778,225 0.49
13/09/2019 Sale 1,442,300 0.03 28,335,925 0.50
18/10/2019 Purchase 835,000 0.01 29,170,925 0.51
25/10/2019 Purchase 836,553 0.01 30,007,478 0.53
06/12/2019 Purchase 1,099,237 0.02 31,106,715 0.54
10/01/2020 Purchase 242,504 0.00 31,349,219 0.55
17/01/2020 Purchase 328,088 0.01 31,677,307 0.55
07/02/2020 Purchase 1,030,073 0.02 32,707,380 0.57
28/02/2020 Purchase 314,363 0.01 33,021,743 0.58
06/03/2020 Purchase 677,283 0.01 33,699,026 0.59
27/03/2020 Purchase 1,215,881 0.02 34,914,907 0.61
31/03/2020 Closing Balance - 34,914,907 0.61
5 01/04/2019 Opening Balance WIPRO EQUITY REWARD TRUST 27,353,853 0.45 27,353,853 0.45
01/04/2019 Transfer of shares pur- 4,607,772 0.05 22,746,081 0.40
to 31/03/2020 suant to exercise of
vested stock options
31/03/2020 Closing Balance 22,746,081 0.40
6 01/04/2019 Opening Balance ICICI PRUDENTIAL VALUE 22,849,304 0.38 22,849,304 0.38
13/09/2019 Sale DISCOVERY FUND 1,161,155 0.00 21,688,149 0.38
31/03/2020 Closing Balance 21,688,149 0.38
7 01/04/2019 Opening Balance LIFE INSURANCE CORPORATION OF 20,814,988 0.34 20,814,988 0.34
26/04/2019 Purchase INDIA P & GS FUND 13,501,002 0.22 34,315,990 0.57
13/09/2019 Sale 1,591,838 0.00 32,724,152 0.57
31/03/2020 Closing Balance 32,724,152 0.57
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Sl. Date of Nature of Name of the Share Holder Shareholding at the beginning of Cumulative Shareholding during
No. Transaction Transaction the Year the Year
No of Shares % of total No of Shares % of total shares of
shares of the the Company
company
8 01/04/2019 Opening Balance SBI-ETF NIFTY 50 16,566,685 0.27 16,566,685 0.27
05/04/2019 Purchase 127,127 0.00 16,693,812 0.28
12/04/2019 Sale 1,192,753 0.02 15,501,059 0.26
19/04/2019 Sale 700,374 0.01 14,800,685 0.25
26/04/2019 Sale 189,457 0.00 14,611,228 0.24
03/05/2019 Purchase 1,936,324 0.03 16,547,552 0.27
10/05/2019 Purchase 126,225 0.00 16,673,777 0.28
17/05/2019 Purchase 222,156 0.00 16,895,933 0.28
24/05/2019 Purchase 73,491 0.00 16,969,424 0.28
31/05/2019 Sale 182,493 0.00 16,786,931 0.28
07/06/2019 Purchase 253,482 0.00 17,040,413 0.28
14/06/2019 Purchase 74,239 0.00 17,114,652 0.28
21/06/2019 Purchase 336,394 0.01 17,451,046 0.29
28/06/2019 Purchase 155,134 0.00 17,606,180 0.29
05/07/2019 Purchase 672,177 0.01 18,278,357 0.30
12/07/2019 Purchase 305,326 0.01 18,583,683 0.31
19/07/2019 Purchase 231,986 0.00 18,815,669 0.31
26/07/2019 Purchase 105,860 0.00 18,921,529 0.31
02/08/2019 Sale 348,512 0.01 18,573,017 0.31
09/08/2019 Purchase 189,696 0.00 18,762,713 0.31
16/08/2019 Purchase 105,984 0.00 18,868,697 0.31
23/08/2019 Sale 1,123,536 0.02 17,745,161 0.29
30/08/2019 Sale 1,261,557 0.02 16,483,604 0.27
06/09/2019 Purchase 834,465 0.01 17,318,069 0.29
13/09/2019 Purchase 52,224 0.00 17,370,293 0.30
20/09/2019 Purchase 71,040 0.00 17,441,333 0.31
27/09/2019 Sale 1,117,068 0.02 16,324,265 0.29
30/09/2019 Purchase 22,080 0.00 16,346,345 0.29
04/10/2019 Purchase 2,272,723 0.04 18,619,068 0.33
11/10/2019 Purchase 28,627 0.00 18,647,695 0.33
18/10/2019 Purchase 135,000 0.00 18,782,695 0.33
25/10/2019 Purchase 62,820 0.00 18,845,515 0.33
01/11/2019 Purchase 143,331 0.00 18,988,846 0.33
08/11/2019 Purchase 124,387 0.00 19,113,233 0.33
15/11/2019 Purchase 113,220 0.00 19,226,453 0.34
22/11/2019 Purchase 89,100 0.00 19,315,553 0.34
29/11/2019 Purchase 73,980 0.00 19,389,533 0.34
06/12/2019 Purchase 72,000 0.00 19,461,533 0.34
13/12/2019 Purchase 77,940 0.00 19,539,473 0.34
20/12/2019 Purchase 60,480 0.00 19,599,953 0.34
27/12/2019 Sale 692,658 0.01 18,907,295 0.33
31/12/2019 Purchase 38,079 0.00 18,945,374 0.33
03/01/2020 Purchase 48,240 0.00 18,993,614 0.33
10/01/2020 Purchase 43,380 0.00 19,036,994 0.33
17/01/2020 Purchase 36,540 0.00 19,073,534 0.33
24/01/2020 Purchase 53,280 0.00 19,126,814 0.33
31/01/2020 Sale 117,755 0.00 19,009,059 0.33
07/02/2020 Purchase 764,260 0.01 19,773,319 0.35
14/02/2020 Purchase 47,520 0.00 19,820,839 0.35
21/02/2020 Purchase 35,820 0.00 19,856,659 0.35
28/02/2020 Purchase 351,540 0.01 20,208,199 0.35
06/03/2020 Purchase 584,917 0.01 20,793,116 0.36
13/03/2020 Purchase 219,536 0.00 21,012,652 0.37
20/03/2020 Sale 6,058 0.00 21,006,594 0.37
27/03/2020 Purchase 600,577 0.01 21,607,171 0.38
31/03/2020 Purchase 331,932 0.01 21,939,103 0.38
31/03/2020 Closing Balance - - 21,939,103 0.38
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Wipro Limited
Sl. Date of Nature of Name of the Share Holder Shareholding at the beginning of Cumulative Shareholding during
No. Transaction Transaction the Year the Year
No of Shares % of total No of Shares % of total shares of
shares of the the Company
company
9 01/04/2019 Opening Balance GOVERNMENT OF SINGAPORE 16,081,827 0.27 16,081,827 0.27
05/04/2019 Purchase 264,755 0.00 16,346,582 0.27
12/04/2019 Sale 3,615 0.00 16,342,967 0.27
03/05/2019 Sale 329,963 0.01 16,013,004 0.27
10/05/2019 Sale 651,362 0.01 15,361,642 0.25
17/05/2019 Sale 21,043 0.00 15,340,599 0.25
24/05/2019 Purchase 62,670 0.00 15,403,269 0.26
31/05/2019 Sale 2,712,027 0.04 12,691,242 0.21
07/06/2019 Purchase 1,664,166 0.03 14,355,408 0.24
14/06/2019 Purchase 32,129 0.00 14,387,537 0.24
21/06/2019 Purchase 393,961 0.01 14,781,498 0.24
05/07/2019 Purchase 62,498 0.00 14,843,996 0.25
12/07/2019 Sale 263,138 0.00 14,580,858 0.24
19/07/2019 Sale 236,417 0.00 14,344,441 0.24
26/07/2019 Sale 61,592 0.00 14,282,849 0.24
02/08/2019 Sale 77,863 0.00 14,204,986 0.24
09/08/2019 Sale 154,901 0.00 14,050,085 0.23
16/08/2019 Sale 53,915 0.00 13,996,170 0.23
23/08/2019 Sale 95,436 0.00 13,900,734 0.23
06/09/2019 Purchase 241,849 0.00 14,142,583 0.23
13/09/2019 Sale 884,408 0.02 13,258,175 0.23
20/09/2019 Sale 70,540 0.00 13,187,635 0.23
30/09/2019 Sale 10,543 0.00 13,177,092 0.23
04/10/2019 Purchase 151,556 0.00 13,328,648 0.23
11/10/2019 Purchase 35,672 0.00 13,364,320 0.23
18/10/2019 Purchase 35,381 0.00 13,399,701 0.23
25/10/2019 Sale 126,742 0.00 13,272,959 0.23
01/11/2019 Sale 33,436 0.00 13,239,523 0.23
08/11/2019 Purchase 29,250 0.00 13,268,773 0.23
15/11/2019 Purchase 39,545 0.00 13,308,318 0.23
22/11/2019 Sale 4,470 0.00 13,303,848 0.23
29/11/2019 Sale 833,908 0.01 12,469,940 0.22
06/12/2019 Sale 703,818 0.01 11,766,122 0.21
13/12/2019 Sale 5,211 0.00 11,760,911 0.21
20/12/2019 Purchase 112,382 0.00 11,873,293 0.21
31/12/2019 Sale 214,311 0.00 11,658,982 0.20
10/01/2020 Purchase 40,024 0.00 11,699,006 0.20
17/01/2020 Sale 109,122 0.00 11,589,884 0.20
24/01/2020 Sale 85,954 0.00 11,503,930 0.20
31/01/2020 Sale 20,809 0.00 11,483,121 0.20
07/02/2020 Sale 530,272 0.01 10,952,849 0.19
14/02/2020 Purchase 37,473 0.00 10,990,322 0.19
21/02/2020 Sale 9,553 0.00 10,980,769 0.19
28/02/2020 Sale 11,682 0.00 10,969,087 0.19
06/03/2020 Purchase 560,096 0.01 11,529,183 0.20
13/03/2020 Sale 24,125 0.00 11,505,058 0.20
20/03/2020 Sale 58,856 0.00 11,446,202 0.20
27/03/2020 Purchase 33,147 0.00 11,479,349 0.20
31/03/2020 Sale 97,414 0.00 11,381,935 0.20
31/03/2020 Closing Balance 0.00 11,381,935 0.20
10 01/04/2019 Opening Balance ISHARES EMERGING MARKETS 16,030,680 0.27 16,030,680 0.27
12/04/2019 Purchase MINIMUM VOLATILITY 180690 0.00 16,211,370 0.27
10/05/2019 Sale MAURITIUS 148584 0.00 16,062,786 0.27
17/05/2019 Sale 83835 0.00 15,978,951 0.26
24/05/2019 Sale 1496491 0.02 14,482,460 0.24
31/05/2019 Sale 5451573 0.09 9,030,887 0.15
07/06/2019 Sale 472805 0.01 8,558,082 0.14
21/06/2019 Sale 22776 0.00 8,535,306 0.14
29/06/2019 Sale 8535306 0.14 - -
31/03/2020 Closing Balance - -
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Annexure B
Shareholding of Directors and Key Managerial Personnel
Shareholding at the begin- Cumulative Shareholding of
ning of the year April 01, 2019 the year (2019-20)
Name Nature of Transaction % of total % of total
No. of Shares shares of the No. of Shares shares of the
company (1) company (2)
Rishad A. Premji# Opening Balance - 01/04/2019 1,831,109 0.03 - -
Chairman Buyback- 09/09/2019 (93,052) - 1,738,057 0.03
Closing Balance - 31/03/2020 - - 1,738,057 0.03
Azim H. Premji@ Opening Balance - 01/04/2019 254,451,816 4.22 - -
Non-Executive, Non-Independent Director Buyback- 09/09/2019 (12,538,000) - 241,913,816 4.23
Closing Balance - 31/03/2020 - - 241,913,816 4.23
Ashok S. Ganguly$ Opening Balance - 01/04/2019 4,978 0.00 - -
Independent Director Purchase/Sale - - - -
Closing Balance - 31/03/2020 - - - -
N. Vaghul$ Opening Balance - 01/04/2019 - - - -
Independent Director Purchase/Sale
Closing Balance - 31/03/2020 - - - -
William A. Owens Opening Balance - 01/04/2019 - - - -
Independent Director Purchase/Sale
Closing Balance - 31/03/2020 - - - -
Abidali Z. Neemuchwala& Opening Balance - 01/04/2019 426,666 0.01 - -
Chief Executive Officer and Managing Director Purchase - 19/04/2019 (Exercise of RSU) 320,000 - 746,666 0.01
Purchase - 13/09/2019 (Exercise of RSU) 160,000 - 906,666 0.02
Sale - 13/09/2019
(66,978) - 839,688 0.01
(RSUs through cashless mode)
Closing Balance - 31/03/2020 - - 839,688 0.01
M. K. Sharma Opening Balance - 01/04/2019 - - - -
Independent Director Purchase/Sale - - - -
Closing Balance - 31/03/2020 - - - -
Ireena Vittal Opening Balance - 01/04/2019 - - - -
Independent Director Closing Balance - 31/03/2020 - - - -
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Annexure C
Remuneration to other Directors 2019-20: (` in Crores)
Non-
Executive
Independent Directors Non-
Particulars of Independent
Remuneration Director
Mr. William Mr. M. K. Mrs. Ireena Dr. Patrick J. Mr. Patrick A. Mrs. Arundhati Mr. N. Dr. Ashok Mr. Azim H.
A. Owens* Sharma Vittal Ennis* Dupuis* @ Bhattacharya Vaghul# Ganguly# Premji
Fee for attending
board and committee 0.04 0.05 0.05 0.04 0.04 0.05 0.02 0.02 0.03
meetings
Commission 2.66 1.03 0.96 1.95 1.46 0.84 0.36 0.28 0.48
Others, please specify - - - - - - - - -
TOTAL 2.70 1.08 1.01 1.99 1.50 0.89 0.38 0.30 0.51
*
Figures mentioned are ` equivalent of amount paid in US$.
@
In support of Wipro’s humanitarian efforts to combat COVID-19, Mr. Patrick Dupuis, Independent Director, has foregone the commission
payable to him for quarter ended March 31, 2020 and Wipro will contribute Mr. Dupuis’ commission to Wipro Cares for its various COVID-19
related activities as part of its Corporate Social Responsibility program.
#
Retired as Independent Director from the Board of the Company with effect from July 31, 2019.
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Corporate governance at Wipro is implemented through to ensure that the shareholders of the Company are
robust board governance processes, internal control well informed of Board decisions both on financial and
systems and processes, and strong audit mechanisms. non-financial matters and adequate notice with a
These are articulated through the Company’s Code of detailed explanation is sent to the shareholders well in
Business Conduct, Corporate Governance Guidelines advance to obtain necessary approvals.
and charters of various sub-committees of the Board
and the Company’s Disclosure Policy. Wipro’s corporate III. Board of Directors
governance practices can be described through the
following four layers: 1. Composition of Board
a) Governance by Shareholders As at March 31, 2020, our Board had two Executive
Directors, six non-executive Independent Directors
b) Governance by Board of Directors and one non-executive non-independent Director. The
c) Governance by Sub-committees of Board, and Executive Chairman and Whole time Director, and the
non-executive non-independent Director are Promoter
d) Governance through management process Directors. The Chief Executive Officer (CEO) and Managing
Director is a professional CEO who is responsible for
In this report, we have provided details on how the the day to day operations of the Company. Of the seven
corporate governance principles are put in to practice Non-Executive Directors, six are Independent Directors,
within Wipro. free from any business or other relationship that could
materially influence their judgment. In the opinion of the
II. Shareholders
Board, all the Independent Directors are independent of
The Companies Act, 2013, Securities and Exchange the management and satisfy the criteria of independence
Board of India (Listing Obligations and Disclosure as defined under the Companies Act, 2013, the Listing
Requirements) Regulations, 2015 (“Listing Regulations”) Regulations and the NYSE Listed Company manual.
and New York Stock Exchange (NYSE) Listed Company
Manual prescribe the governance mechanism by The Board is well diversified and consists of two women
shareholders in terms of passing of ordinary and special Independent Directors and three Directors who are
resolutions, voting rights, participation in the corporate foreign nationals. The profiles of our Directors are
actions such as bonus, buyback of shares, declaration available on our website at https://www.wipro.com/
of dividend, etc. Your Company follows a robust process leadership.
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Wipro Limited
2. Board Meetings 4. Appointment of Directors
We decide about the Board meeting dates in The Board has adopted the provisions with respect
consultation with the Board Governance, Nomination to appointment and tenure of Independent Directors
and Compensation Committee and all our Directors. consistent with the Companies Act, 2013 and the Listing
Once approved by the Board Governance, Nomination Regulations.
and Compensation Committee, the schedule of the
Board meetings and Board Committee meetings is As per the provisions of the Companies Act, 2013, the
communicated in advance to the Directors to enable Independent Directors shall be appointed for not more
them to attend the meetings. than two terms of maximum of five years each and shall
not be liable to retire by rotation.
Our Board meetings are normally scheduled over two
days. In addition, every quarter, Independent Directors At the time of appointment of an Independent Director, the
meet amongst themselves exclusively. In line with Para Company issues a formal letter of appointment outlining
4 of Schedule B of Securities and Exchange Board of his/her role, function, duties and responsibilities as a
India (Prohibition of Insider Trading) Regulations, 2015, Director. The template of the letter of appointment is
it is the endeavor of the Company that the gap between available on our website at https://www.wipro.com/
the clearance of accounts by audit committee and board investors/corporate-governance/.
meeting is as narrow as possible, and Wipro is committed
to adhere to this requirement. Details of Directors proposed for appointment/
re-appointment at the 74th Annual General Meeting
3. Information Flow to the Board Members (AGM) is provided at page no. 73 as part of the Board’s
Report and in the notice convening the 74th AGM.
Information is provided to the Board Members on a
continuous basis for their review, inputs and approval Lead Independent Director
from time to time. More specifically, we present our
annual strategic plan and operating plans of our The Board has designated Mr. M. K. Sharma as the Lead
business to the Board for their review, inputs and Independent Director. The role of the Lead Independent
approval. Likewise, our quarterly financial statements Director is described in the Corporate Governance
and annual financial statements are first presented guidelines of your Company and is available on the
to the Audit Committee and subsequently to the Board Company’s website at https://www.wipro.com/investors/
for their approval. In addition, various matters such as corporate-governance/.
appointment of Directors and Key Managerial Personnel,
corporate actions, review of internal and statutory audits, 5. Policy for Selection and Appointment of Directors and
details of investor grievances, acquisitions, important their Remuneration
managerial decisions, material positive/negative
The Board Governance, Nomination and Compensation
developments and statutory matters are presented to
the respective Committees of the Board and later with Committee has adopted a policy which, inter alia, deals
the recommendation of Committees to the Board of with the manner of selection of Directors and payment of
Directors for their approval. their remuneration as described herein below.
As a system, in most cases, information to Directors is Criteria of Selection of Independent Directors and Key
submitted along with the agenda papers well in advance Skills, Expertise, and Core Competencies of the Board
of the Board meeting. Inputs and feedback of Board
The Board of the Company comprises of eminent
Members are taken and considered while preparation of
personalities and leaders in their respective fields.
agenda and documents for the Board meeting.
These Directors are nominated based on well-defined
Documents containing Unpublished Price Sensitive selection criteria. The Board Governance, Nomination
Information are submitted to the Board and Committee and Compensation Committee considers, inter alia,
Members, at a shorter notice, as per the general consent key qualifications, skills, expertise and competencies,
taken from the Board, from time to time. whilst recommending to the Board the candidature for
appointment as Independent Director.
Post-Meeting Follow-up System
In case of appointment of Independent Directors, the
After the Board meeting, we have formal system of Board Governance, Nomination and Compensation
follow-up, review and reporting on actions taken by the Committee satisfies itself about the independence of the
management on the decisions of the Board and sub- Directors vis-à-vis the Company to enable the Board to
committees of the Board. discharge its functions and duties effectively.
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The Board Governance, Nomination and Compensation Committee ensures that the candidates identified for appointment as
Directors are not disqualified for appointment under Section 164 and other applicable provisions of the Companies Act, 2013.
In case of re-appointment of Independent Directors, the Board takes into consideration the performance evaluation of the
Independent Directors and their engagement level.
As required under Rule 6 of the Companies (Appointment and Qualification of Directors) Rules, 2014, all the Independent
Directors have completed the registration with the Independent Directors Databank.
In the opinion of the Board and the Board Governance, Nomination and Compensation Committee, the following is a list of core
skills/expertise/competencies required in the context of the Company’s business and which are available with the Board:
Wide management and Strong management and leadership experience, including in areas of business development, strategic
leadership experience planning and mergers and acquisitions, ideally with major public companies with successful multinational
operations in technology, manufacturing, banking, investments and finance, international business,
scientific research and development, senior level government experience and academic administration.
Information Technology Expertise or experience in information technology business, technology consulting and operations,
emerging areas of technology such as digital, cloud and cyber security, intellectual property in information
technology domain, and knowledge of technology trends.
Diversity Diversity of thought, experience, knowledge, perspective, gender and culture brought to the Board
by individual members. Varied mix of strategic perspectives, geographical focus with knowledge and
understanding of key geographies.
Functional and Knowledge and skills in accounting and finance, business judgment, general management practices and
managerial experience processes, crisis response and management, industry knowledge, macro-economic perspectives, human
resources, labour laws, international markets, sales and marketing, and risk management.
Personal values Personal characteristics matching the Company’s values, such as integrity, accountability, and high
performance standards.
Corporate governance Experience in developing and implementing good corporate governance practices, maintaining board and
management accountability, managing stakeholders’ interests and Company’s responsibilities towards
customers, employees, suppliers, regulatory bodies and the communities in which it operates. Experience
in boards and committees of other large companies.
Given below is a list of core skills, expertise and competencies of the individual Directors:
Skills/Expertise/Competencies
Wide
Functional
Management
Information and Personal Corporate
Name of Director and Diversity
Technology Managerial Values Governance
Leadership
Experience*
Experience*
Mr. Rishad A. Premji
Mr. Abidali Z. Neemuchwala
Mr. Azim H. Premji
Mr. William Arthur Owens
Mr. M. K. Sharma -
Mrs. Ireena Vittal
Dr. Patrick J. Ennis
Mr. Patrick Dupuis
Mrs. Arundhati
Bhattacharya
Mr. N. Vaghul** -
Dr. Ashok S. Ganguly** -
* These skills/competencies are broad-based, encompassing several areas of expertise/experience. Each Director may possess varied
combinations of skills/experience within the described set of parameters, and it is not necessary that all Directors possess all skills/
experience listed therein.
** Mr. N. Vaghul and Dr. Ashok S. Ganguly retired as Independent Directors of the Company with effect from July 31, 2019.
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Wipro Limited
6. Familiarization Programme and Training for succession plans for appointments to the Board based
Independent Directors on various factors such as current tenure of Directors,
outcome of performance evaluation, Board diversity
The Company has an orientation process/familiarization and business requirements. In addition, the Company
programme for its Independent Directors that includes: conducts an annual Talent Review Process for senior
management and other executive officers which provides
a) Briefing on their role, responsibilities, duties, and
a leadership-level talent inventory and capability map
obligations as a member of the Board.
that reflects the extent to which critical talent needs are
b) Nature of business and business model of the fulfilled vis-a-vis business drivers.
Company, Company’s strategic and operating plans.
The Board Governance, Nomination and Compensation
c) Matters relating to Corporate Governance, Code of Committee reviews the outcome of this process and
Business Conduct, Risk Management, Compliance presents the succession plan for senior management
Programs, Internal Audit, etc. and other executive officers to the Board.
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Corporate Overview | Management & Board Reports | Financial Statements
as may be determined by the Board, provided appropriate to the working of the Company and its
however that the aggregate remuneration, including goals.
commission, paid to the Directors other than the
Managing Director and Whole Time Directors in a b) Alignment of remuneration of Key Managerial
financial year shall not exceed 1% of the net profits Personnel and Directors with long-term interests of
of the Company, in terms of Section 197 of the the Company.
Companies Act, 2013 and computed in the manner
c) Directors forming part of the Promoter and Promoter
referred to in Section 198 of the Companies Act,
Group shall not be entitled to receive stock options.
2013.
b) Maintenance of Founder Chairman’s office including d) Company’s performance vis-à-vis the annual
executive assistant at Company’s expense. achievement, individuals’ performance vis-à-
c) Reimbursement of travel, stay and entertainment vis KRAs/KPIs, industry benchmark and current
expenses actually and properly incurred in the compensation trends in the market.
course of business as per the Company’s policy.
The Board Governance, Nomination and Compensation
In determining the remuneration of Chairman, CEO and Committee recommends the remuneration for the Chairman,
Managing Director, and Senior Management Employees CEO and Managing Director, Senior Management and Key
and Key Managerial Personnel, the Board Governance, Managerial Personnel. The payment of remuneration to the
Nomination and Compensation Committee and the Executive Directors and Non-Executive Directors is approved
Board shall ensure/consider the following: by the Board and Members. Prior approval of Members is
also obtained in case of remuneration payable to
a) The balance between fixed and variable pay reflecting Non-Executive Directors. There was no change to the
short-term and long-term performance objectives, remuneration policy during the financial year.
Details of Remuneration to Directors
Details of remuneration paid to the Directors for the services rendered and stock options during the financial year 2019-20
are given below. No stock options were granted to any of the Independent Directors and Promoter Directors during the year
2019-20.
(Amt. in `)
Rishad A. Abidali Z. Azim H. William Arthur M. K. Ireena Patrick J. Patrick Arundhati N. Vaghul(b) Ashok S.
Premji(c)(e) Neemuchwala(a)(f) Premji(c)(g) Owens(a) Sharma Vittal Ennis(a) Dupuis(a)(d) Bhattacharya(h) Ganguly (b)
Relationship Son of Azim None Father of None None None None None None None None
with directors H. Premji Rishad A.
Premji
Salary 13,143,006 76,417,305 1,000,000 NA NA NA NA NA NA NA NA
Allowances 24,993,243 NA 436,728 NA NA NA NA NA NA NA NA
Commission/ NA 91,513,209 4,786,156 26,602,705 10,275,416 9,614,583 19,507,051 14,593,777 8,412,084 3,575,000 2,816,667
Incentives/
Variable Pay
Other annual 9,843,915 154,536,941 7,167,731 NA NA NA NA NA NA NA NA
compensation
Retirals 3,548,612 339,637 1,631,388 NA NA NA NA NA NA NA NA
Sitting fees NA NA 300,000 400,000 500,000 500,000 400,000 400,000 500,000 200,000 200,000
TOTAL 51,528,776 322,807,092 15,322,003 27,002,705 10,775,416 10,114,583 19,907,051 14,993,777 8,912,084 3,775,000 3,016,667
Notice period Up to 180 Up to 180 days NA NA NA NA NA NA NA NA NA
days
Notes:
a)
Figures mentioned in ` are equivalent to amounts paid in US$
b)
Mr. N. Vaghul and Dr. Ashok S. Ganguly each retired as Independent Directors of the Company with effect from July 31, 2019.
c)
In view of the current situation caused by COVID-19, uncertainty in business is likely to last for the next few months. To show solidarity with
the team in facing the challenge:
i) Mr. Azim H. Premji, Founder Chairman, has foregone the profit linked commission payable to him for the relevant period for FY 2019-20.
ii) Mr. Rishad A. Premji, Chairman, has foregone the variable pay and profit linked commission payable to him for the relevant period for
FY 2019-20.
Accordingly, the Board did not determine profit linked commission due to Mr. Azim H. Premji for FY 2019-20, variable pay and profit linked
commission due to Mr. Rishad A. Premji for FY 2019-20 and the remuneration disclosed in the table above does not include the same.
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d)
In support of Wipro’s humanitarian efforts to combat COVID-19, provide for up to a 180-day notice period, up to 21 days
Mr. Patrick Dupuis, Independent Director, has foregone the of leave per year in addition to statutory holidays, and
commission payable to him for quarter ended March 31, 2020 an annual compensation review. Additionally, they may
and Wipro will contribute Mr. Dupuis’ commission to Wipro Cares be required to relocate as we may determine, and to
for its various COVID-19 related activities as part of its Corporate comply with confidentiality provisions. Service contracts
Social Responsibility program. with our Executive Directors provide for our standard
e)
Mr. Rishad A. Premji’s compensation also included cash bonus retirement benefits that consist of pension, provident fund
(part of his allowances) on an accrual basis, which is payable over and gratuity which are offered to all of our employees,
a period of time. but no other payout upon termination of employment except
f)
The Company announced on January 31, 2020 that as mentioned below.
Mr. Abidali Z. Neemuchwala has resigned from the position of
Chief Executive Officer and Managing Director due to family Pursuant to the terms of the employment arrangement
commitments and will, however, continue to hold the office of with Mr. Abidali Z. Neemuchwala, if his employment is
Chief Executive Officer and Managing Director until a successor is terminated by the Company, the Company is required to pay
appointed. The Board of Directors has, at its meeting held on May Mr. Neemuchwala severance pay equivalent to 12 months’
29, 2020, noted the resignation of Mr. Abidali Z. Neemuchwala base pay.
as the Chief Executive Officer and Managing Director with effect
We also indemnify our directors and officers for claims
from the end of the day on June 1, 2020. Compensation for the
year ended March 31, 2020 includes cost of accelerated vesting
brought under any rule of law to the fullest extent permitted
of unvested options and variable pay. For further details, refer the by applicable law.
“Terms of Employment Arrangements” below.
Among other things, we agree to indemnify our directors
g)
The executive compensation disclosed for Mr. Azim H. Premji is and officers for certain expenses, judgments, fines and
for the period April 1, 2019 to July 30, 2019. The commission and settlement amounts incurred by any such person in any
sitting fees disclosed for Mr. Azim H. Premji is for the period from action or proceeding, including any action by or in the right
July 31, 2019 to March 31, 2020 in his capacity as Non-Executive, of the Company, arising out of such person’s services as our
Non-Independent Director. director or officer, including claims which are covered by the
h)
The Board of Directors has, at its meeting held on May 29, 2020, director’s and officer’s liability insurance policy taken by the
noted the resignation of Ms. Arundhati Bhattacharya as an Company.
Independent Director with effect from close of business hours on
June 30, 2020. On January 31, 2020, the Company announced that
Mr. Neemuchwala has decided to step down due to his family
None of the Non-Executive Directors received remuneration commitments. Mr. Neemuchwala will continue to hold the
exceeding 50% of the total annual remuneration paid to all office of Chief Executive Officer and Managing Director until a
Non-Executive Directors for the year ended March 31, 2020.
successor is appointed for a smooth transition. In appreciation
Terms of Employment Arrangements of his services, and to facilitate a smooth transition and to
ensure business continuity as usual, the Company has agreed
Under the Companies Act, 2013, our shareholders must that Mr. Neemuchwala would receive acceleration with
approve the salary, bonus and benefits of all executive respect to an aggregate of 960,000 unvested ADSs granted to
directors at a General Meeting of the shareholders.
Mr. Neemuchwala. In addition, he will be paid variable pay
Each of our Executive Directors has signed an agreement
for the year ended March 31, 2020 within the range of
containing the terms and conditions of employment,
remuneration approved by the shareholders, as may
including a monthly salary, performance bonus and benefits
be determined by the Board of Directors. Pursuant to
including vacation, medical reimbursement and pension fund
contributions. the resignation of Mr. Neemuchwala, the Company and
Mr. Neemuchwala have agreed to terminate his employment
The terms of our employment arrangements with arrangement with effect from the end of the day on
Mr. Rishad A. Premji and Mr. Abidali Z. Neemuchwala June 1, 2020.
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Wipro Limited
IV. Committees of Board g) Evaluation of internal financial controls, risk
management systems and policies including review
Our Board has constituted sub-committees to focus on of cyber-security; and
specific areas and make informed decisions within the
authority delegated to each of the Committees. Each h) Review of utilization of loans and advances from,
Committee of the Board is guided by its Charter, which and investment by, the Company in its subsidiaries
defines the scope, powers and composition of the exceeding Rs.100 crore or 10% of the asset size of
Committee. All decisions and recommendations of the the subsidiary, whichever is lower, including existing
Committees are placed before the Board for information loans, advances and investments.
or approval.
The detailed charter of the Committee is posted on
During the financial year, the Board has accepted the our website and available at https://www.wipro.com/
recommendations of Committees on matters where such investors/corporate-governance.
All members of our
a recommendation is mandatorily required. There have Audit, Risk and Compliance Committee are Independent
been no instances where such recommendations have Directors and financially literate. The Chairman of
not been considered. our Audit, Risk and Compliance Committee has the
accounting and financial management related expertise.
We have four sub-committees of the Board as at March
31, 2020: Statutory Auditors as well as Internal Auditors have
independent meetings with the Audit, Risk and
a) Audit, Risk and Compliance Committee, which also Compliance Committee and also participate in the Audit,
acts as Risk Management Committee Risk and Compliance Committee meetings. Our Chief
b) Board Governance, Nomination and Compensation Financial Officer, General Counsel, Internal Auditor,
Committee, which also oversees the CSR initiatives Finance Controller and other Corporate Officers make
of the Company and acts as the CSR Committee periodic presentations to the Audit, Risk and Compliance
Committee on various issues.
c) Administrative and Shareholders/Investors
Grievance Committee (Stakeholders Relationship Mr. M. K. Sharma, Independent Director, is the Chairman
Committee) of the Audit, Risk and Compliance Committee. The other
d) Strategy Committee members of the Committee as at March 31, 2020 were
Mrs. Ireena Vittal and Mrs. Arundhati Bhattacharya. The
1. Audit, Risk and Compliance Committee Chairman of the Committee was present at the Annual
General Meeting held on July 16, 2019.
The Audit, Risk and Compliance Committee of our Board
reviews, acts on and reports to our Board with respect 2. Board Governance, Nomination and Compensation
to various auditing and accounting matters. The primary Committee
responsibilities include overseeing:
The Board Governance, Nomination and Compensation
a) Auditing and accounting matters, including Committee reviews, acts on and reports to our Board
recommending the appointment of our independent with respect to various governance, nomination and
auditors to the shareholders; compensation matters. The primary responsibilities
b) Compliance with legal and statutory requirements; include:
c) Integrity of the Company’s financial statements,
a) Developing and recommending to the Board
discussions with the independent auditors regarding
corporate governance guidelines applicable to the
the scope of the annual audits, and fees to be paid to
Company;
the independent auditors;
b) Evaluating the Board on a continuing basis, including
d) Performance of the Company’s internal audit
an assessment of the effectiveness of the full
function, independent auditors and accounting
Board, operations of the Board Committees and
practices;
contributions of individual directors;
e) Review of related party transactions and functioning
c) Establishing policies and procedures to assess the
of whistle blower mechanism;
requirements for induction of new members to the
f) Implementation of the applicable provisions of the Board;
Sarbanes Oxley Act of 2002 (the “Sarbanes Oxley
d) Implementing policies and processes relating to
Act”), including review of the progress of internal
corporate governance principles;
control mechanisms to prepare for certification
under Section 404 of the Sarbanes Oxley Act;
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Annual Report 2019-20
Corporate Overview | Management & Board Reports | Financial Statements
e) Ensuring that appropriate procedures are in place our Board with respect to various matters relating to
to assess Board membership needs and Board stakeholders. The primary responsibilities include:
effectiveness;
a) Redressal of grievances of the shareholders of the
f) Reviewing the Company’s policies that relate to Company pertaining to transfer or transmission
matters of corporate social responsibility (CSR), of shares, non-receipt of annual report and
including public issues of significance to the declared dividends, issue of new or duplicate share
Company and its shareholders; certificates, and grievances pertaining to corporate
actions;
g) Formulating the Disclosure Policy, its review and
approval of disclosures; b) Approving consolidation, split or sub-division of
share certificates, transmission of shares, issue of
h) Approving and evaluating the compensation plans, duplicate share certificates, re-materialization of
policies and programs for full-time directors and shares;
senior management;
c) Reviewing the grievance redressal mechanism
i) Acting as Administrator of the Company’s Employee implemented by the Company in coordination with
Stock Option Plans and Employee Stock Purchase Company’s Registrar and Transfer Agent (“RTA”) from
Plans drawn up from time to time; and time to time;
j) Reviewing and recommending all remuneration, in d) Reviewing the measures taken by the Company for
whatever form, payable to senior management. effective exercise of voting rights by shareholders;
The detailed charter of Board Governance, Nomination e) Implementing and overseeing the procedures and
and Compensation Committee is posted on our website processes in handling and maintenance of records,
and is available at https://www.wipro.com/investors/ transfer of securities and payment of dividend by the
corporate-governance. Company, RTA and dividend processing bank;
Our Chief Human Resources Officer makes periodic f) Reviewing the various measures and initiatives
presentations to the Board Governance, Nomination and taken by the Company for reducing the quantum of
Compensation Committee on compensation reviews and unclaimed dividends and ensuring timely receipt
performance linked compensation recommendations. of dividend warrants, annual reports and statutory
All members of the Board Governance, Nomination notices by the shareholders of the Company.
and Compensation Committee are non-executive
g) Overseeing administrative matters like opening and
independent directors. The Board Governance,
closure of Company’s bank accounts, grant and
Nomination and Compensation Committee is the apex
revocation of general, specific and banking powers
body that oversees our Corporate Social Responsibility
of attorney; and
policy and programs.
h) Considering and approving allotment of equity
Mr. William Arthur Owens, Independent Director, is the shares pursuant to exercise of stock options, setting
Chairman of the Board Governance, Nomination and up branch offices and other administrative matters
Compensation Committee. The other members of the as delegated by the Board from time to time.
Committee as at March 31, 2020 were Mrs. Ireena Vittal
and Mr. M. K. Sharma. The Chairman of the Committee The detailed charter of the Committee is available on
was present at the Annual General Meeting held on our website at https://www.wipro.com/investors/
July 16, 2019. corporate-governance/.
3. Administrative and Shareholders/Investors Grievance Mr. M. K. Sharma, Independent Director, is the Chairman
Committee (Stakeholders Relationship Committee) of the Administrative and Shareholders/Investors
Grievance Committee. The other members of the
The Administrative and Shareholders/Investors Committee as at March 31, 2020 were Mrs. Arundhati
Grievance Committee carries out the role of Stakeholders Bhattacharya and Mr. Rishad A. Premji. The Chairman
Relationship Committee in compliance with Section 178 of the Committee was present at the Annual General
of the Companies Act, 2013 and the Listing Regulations. Meeting held on July 16, 2019.
The Administrative and Shareholders/Investors Mr. M Sanaulla Khan, Company Secretary, is our
Grievance Committee reviews, acts on and reports to Compliance Officer under the Listing Regulations.
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Wipro Limited
Status Report of investor queries and complaints for a) Making recommendations to the Board relating to
the period from April 1, 2019 to March 31, 2020 is given the Company’s mission, vision, strategic initiatives,
below: major programs and services;
b) Ensuring management has established an effective
Sl. No. of strategic planning process, including development
Particulars
No. Complaints
of a three to five year strategic plan with measurable
1. Investor complaints pending at the NIL goals and time targets;
beginning of the year
c) Annually reviewing the strategic plan for the
2. Investor complaints received during 3,442*
Company and for each division and entity as well and
the year
recommending updates to the Board;
3. Investor complaints disposed of 3,442*
during the year d) Establishing criteria for management to evaluate
4. Investor complaints remaining NIL potential strategic investments, reviewing proposals
unresolved at the end of the year for acquisition or divestment opportunities for the
Company and making appropriate recommendations
* of the 3,442 complaints received, 3,080 were clarifications to the Board, and reviewing post-transaction
regarding buyback of equity shares. integration matters; and
Apart from these queries/complaints, there are certain e) Monitoring the Company performance against
pending cases relating to dispute over title to shares, measurable targets (e.g. market share, increase in
in which in certain cases the Company has been made revenue, or operating margin) or progress points
a party. However, these cases are not material in nature. (such as emerging technologies).
Mr. William Arthur Owens, Independent Director, is the
4. Strategy Committee
Chairman of the Strategy Committee. The other members
The Strategy Committee reviews, acts and reports to our of the Committee as at March 31, 2020 were Mr. Azim H.
Board with respect to the mission, vision and strategic Premji, Mrs. Ireena Vittal, Dr. Patrick J. Ennis, Mr. Patrick
direction of the Company. Primary responsibilities of this Dupuis, Mr. Abidali Z. Neemuchwala and Mr. Rishad A.
Committee, inter alia, are: Premji.
Details of attendance of Directors at the Board meetings and Committee meetings for the year ended March 31, 2020 were as
under:
Board Governance,
Administrative
Nomination and
Audit, Risk and and Shareholders/
Compensation Strategy
Board Meeting (1) Compliance Investors
Committee (also Committee
Committee (2) Grievance
acts as CSR
Committee (4)
Committee) (3)
No. of meetings held
5 5 5 3 4
during FY 2019-20
April 15-16, 2019,
April 16, 2019, April 15, 2019, June
June 6, 2019, April 15, 2019, April 15, 2019, July
June 6, 2019, July 6, 2019, July 16,
July 16-17, 2019, October 14, 2019 16, 2019, October
Date of meetings 17, 2019, October 2019, October 14,
October 14-15, and January 13, 14, 2019 and
15, 2019 and 2019 and January
2019, and January 2020 January 13, 2020
January 14, 2020 13, 2020
13-14, 2020
Attendance of Directors
Rishad A. Premji* 5 NA NA 3 4
Abidali Z. Neemuchwala @ 4 NA NA 3 NA
Azim H. Premji # 5 NA NA 3 NA
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Corporate Overview | Management & Board Reports | Financial Statements
Board Governance,
Administrative
Nomination and
Audit, Risk and and Shareholders/
Compensation Strategy
Board Meeting (1) Compliance Investors
Committee (also Committee
Committee (2) Grievance
acts as CSR
Committee (4)
Committee) (3)
William Arthur Owens 4 NA 4 3 NA
M. K. Sharma 5 5 2 NA 4
Ireena Vittal 5 5 2 3 2
Dr. Patrick J. Ennis 4 NA NA 3 NA
Patrick Dupuis 4 NA NA 3 NA
Arundhati Bhattacharya^ 5 5 NA NA 2
Dr. Ashok S. Ganguly $
3 NA 3 NA NA
N. Vaghul $ 3 3 3 NA NA
* Mr. Rishad A. Premji was appointed as Executive Chairman of the Board with effect from July 31, 2019.
@ The Board of Directors has, at its meeting held on May 29, 2020, noted the resignation of Mr. Abidali Z. Neemuchwala as the Chief Executive
Officer and Managing Director with effect from the end of the day on June 1, 2020.
# Mr. Azim H. Premji retired from the position of Executive Chairman and Managing Director with effect from July 30, 2019 and was appointed
as a Non-Executive, Non-Independent Director of the Company effective July 31, 2019.
^ The Board of Directors has, at its meeting held on May 29, 2020, noted the resignation of Mrs. Arundhati Bhattacharya as an Independent
Director with effect from close of business hours on June 30, 2020. In her resignation letter, Mrs. Arundhati Bhattacharya has indicated that
the reason for her resignation is her decision to accept a full time role as Chairperson and CEO in another company. She has also confirmed
that there is no other material reason, other than the reason stated in her resignation letter.
$ Mr. N. Vaghul and Dr. Ashok S. Ganguly retired as Independent Directors of the Company with effect from July 31, 2019.
1. Board Meeting: Mr. Abidali Z. Neemuchwala, Mr. William Arthur Owens, Dr. Patrick J. Ennis and Mr. Patrick Dupuis did not attend the Board
Meeting held on June 6, 2019.
2. Audit, Risk and Compliance Committee: The Committee was re-constituted during the year and Mr. M. K. Sharma was appointed as Chairman
of the Committee with effect from August 1, 2019.
3. Board Governance, Nomination and Compensation Committee:
a) The Committee was re-constituted during the year and Mr. William Arthur Owens was appointed as Chairman of the Committee and
Mr. M. K. Sharma and Mrs. Ireena Vittal as members of the Committee with effect from August 1, 2019.
b) Since the appointment of Mr. M. K. Sharma and Mrs. Ireena Vittal as members of the Committee, there were two Committee meetings
held on October 14, 2019 and January 13, 2020.
c) Mr. William Arthur Owens was not present at the Committee Meeting held on June 6, 2019.
4. Administrative and Shareholders/Investors Grievance Committee:
a) Mrs. Arundhati Bhattacharya was appointed as member of the Committee with effect from August 1, 2019. Consequently, the composition
of the Committee is as follows: Mr. M. K. Sharma (Chairman), Mrs. Arundhati Bhattacharya and Mr. Rishad A. Premji (Members).
b) Since the appointment of Mrs. Arundhati Bhattacharya as member of the Committee, there were two Committee meetings held on
October 14, 2019 and January 13, 2020.
V. Governance through Management process Over years, this articulation has evolved in form but
remained constant in substance. Today we articulate it
1. Code of Business Conduct as Code of Business Conduct.
In the year 1983, we articulated ‘Wipro Beliefs’ consisting In our Company, the Board and all employees have
of six statements. At the core of beliefs was integrity, a responsibility to understand and follow the Code
articulated as “individual and company relationship of Business Conduct. All employees are expected to
should be governed by the highest standard of conduct perform their work with honesty and integrity. Wipro’s
and integrity”. Code of Business Conduct reflects general principles
to guide employees in making ethical decisions. This
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Wipro Limited
Code is also applicable to our representatives. This Code Regulations, which is available on our website at https://
outlines fundamental ethical considerations as well www.wipro.com/investors/corporate-governance. The
as specific considerations that need to be maintained objective of this policy is to have uniform disclosure
for professional conduct. This Code has been displayed practices and ensure timely, adequate and accurate
on the Company’s website at https://www.wipro.com/ disclosure of information on an ongoing basis. The
investors/corporate-governance. Company has constituted a Disclosure Committee
consisting of senior officials, which approves all
2. Internal Audit
disclosures required to be made by the Company.
The Company has a robust Internal Audit function with Parity in disclosures are maintained through
the stated vision of “To be the best in class Internal Audit simultaneous disclosure on National Stock Exchange of
function globally”. In pursuit of this vision, the function India Limited, the BSE Limited and the New York Stock
provides an independent, objective assurance services Exchange.
to value-add and improve operations of business units
and processes by: 4. Policy for Preservation of Documents
a) Financial, Business Process and Compliance Audit Pursuant to the requirements under Regulation 9 of
b) Cyber Defense and Technology Audit the Listing Regulations, the Board has formulated and
c) Operation Reviews approved a Document Retention Policy prescribing the
d) Best Practices and Benchmarking manner of retaining the Company’s documents and the
e) Leadership Development time period up to certain documents are to be retained.
The policy percolates to all levels of the organization who
The Head of Internal Audit reports to the Chairman handle the prescribed categories of documents.
of the Audit, Risk and Compliance Committee and
administratively to the Chief Financial Officer. Head of 5. Other Policies
Internal Audit has regular and exclusive meetings with
the Audit, Risk and Compliance Committee. The Company has adopted an Ombuds policy (vigil
mechanism), a policy for prevention, prohibition &
The Internal Audit function is guided by its charter, as redressal of sexual harassment of women at workplace,
approved by the Audit, Risk and Compliance Committee. as well as a code of conduct to regulate, monitor and
The Internal Audit function formulates an annual risk report insider trading. Details of these are provided as
based audit plan based on consultations and inputs part of the Board’s report.
from the Board and business leaders and presents it to
the Audit, Risk and Compliance Committee for approval. VI. Disclosures
Findings of various audits carried out during the financial
year are also periodically presented to the Audit, Risk 1. Disclosure of Materially Significant Related Party
and Compliance Committee. The Internal Audit function Transactions
adopts a risk based audit approach and covers core areas
All related party transactions that were entered during
such as compliance audits, financial audits, technology
audits, third party risk audits, M&A audits, etc. the financial year were at an arm’s length basis and
were in the ordinary course of business. There are no
The function, which was the first Indian Internal Audit unit materially significant related party transactions made by
to get ISO certified in 1998 and win International award the Company with Promoters, Directors, Key Managerial
from Institute of Internal Auditors (IIA) won in 2002, was Personnel or other designated persons which may have
also an early adopter of the new ISO 9001:2015 Version. a potential conflict with the interest of the Company at
During the year, Internal Audit function is assessed large.
to have “Met International Standards” prescribed by
the Professional Practice of Internal Auditing issued As required under Regulation 23 of the Listing
by “International Institute of Internal Auditors (IIA)” Regulations, the Company has adopted a policy
by external firm (KPMG). Testimony to the functions’ on Related Party Transactions. The abridged
innovation and excellence are the IIA awards won in these policy on Related Party Transactions is available on
categories continuously over the last few years. the Company’s website at https://www.wipro.com/
investors/corporate-governance.
3. Disclosure Policy
Apart from receiving director remuneration, none of
In line with requirements under Regulation 30 of the Listing the Directors have any pecuniary relationships or
Regulations, the Company has framed a policy on disclosure transactions vis-à-vis the Company. During the year
of material events and information as per the Listing 2019-20, no transactions of material nature were
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Annual Report 2019-20
Corporate Overview | Management & Board Reports | Financial Statements
entered by the Company with the management or their to the Audit, Risk and Compliance Committee or its
relatives that may have a potential conflict of interest Chairman.
with the Company and the concerned officials have given
5. Transfer to Investor Education and Protection Fund
undertakings to that effect as per the provisions of the
Authority
Listing Regulations.
a) Pursuant to the Provisions of Section 124(6) of
The Register under Section 189 of the Companies Act,
the Companies Act, 2013 and Investor Education
2013 is maintained and particulars of the transactions
and Protection Fund (IEPF) rules, during the year
have been entered in the Register, as applicable.
2019-20, unclaimed dividend for financial years
2. Subsidiary Monitoring Framework 2011-12 and 2012-13 of ` 7,911,052/- and
` 4,094,448/- respectively, were transferred to the
All the subsidiary companies of the Company are
IEPF.
managed by their Boards having the rights and obligations
to manage these companies in the best interest of b) Pursuant to the provisions of Section 124(6) of the
respective stakeholders. The Company nominates its Companies Act, 2013 and IEPF rules, during the year
representatives on the Board of subsidiary companies 2019-20, 35,997 equity shares in respect of which
and monitors performance of such companies, inter alia, dividend has not been claimed for the final dividend
by reviewing: declared in financial year 2011-12 and interim
dividend declared in financial year 2012-13 were
a) Financial statements, the investment made by the
transferred to the IEPF.
unlisted subsidiary companies, statement containing
all significant transactions and arrangements 6. Disclosures with respect to demat suspense account/
entered by the unlisted subsidiary companies unclaimed suspense account (Unclaimed Shares)
forming part of the financials being reviewed by
the Audit, Risk and Compliance Committee of the Pursuant to Regulation 39 of the Listing Regulations,
Company on a quarterly basis. reminder letters have been sent to shareholders whose
shares remain unclaimed from the Company. Based on
b) Minutes of the meetings of the unlisted subsidiary their response, such shares have been transferred to
companies, if any, are placed before the Company’s “unclaimed suspense account” as per the provisions of
Board regularly. Schedule VI of the Listing Regulations. The disclosure as
c) Providing necessary guarantees, letter of comfort required under Schedule V of the Listing Regulations is
and other support for their day-to-day operations given below:
from time-to-time.
Sl. No. of No. of
The Company does not have any subsidiary whose income Particulars
No. Shareholders Shares
or net worth exceeds 10% of the consolidated income or 1. Aggregate number of
net worth of the Company in the immediately preceding shareholders and the
financial year. outstanding shares in the 303 302,659
suspense account lying at the
3. Details of non-compliance by the Company, penalties, beginning of the year
and strictures imposed on the Company by Stock 2. Number of shareholders who
Exchanges or SEBI or any statutory authority, on any approached the Company
matter related to capital markets, during the last three for transfer of shares from 7 30,743
years. suspense account during the
year
The Company has complied with the requirements of the
Stock Exchanges or SEBI on matters related to Capital 3. Number of shareholders
to whom shares were
Markets, as applicable, during the last three years. 7 30,743
transferred from suspense
No penalties or strictures have been imposed on the account during the year
Company.
4. Aggregate number of
4. Whistle Blower Policy and affirmation that no shareholders and the
personnel have been denied access to the Audit, Risk outstanding shares in the 296 271,916
and Compliance Committee suspense account lying at the
end of the year
As detailed in the Board’s Report, the Company has 5. Voting rights on these shares
adopted an Ombuds process which is a channel for shall remain frozen till the
receiving and redressing employees’ complaints. Yes
rightful owner of such shares
No personnel in the Company has been denied access claim the same
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Wipro Limited
7. Shareholder Information we display our quarterly and half yearly results on our
website www.wipro.com and also publish our results in
Various shareholder information required to be disclosed
pursuant to Schedule V of the Listing Regulations are widely circulated newspapers. We have communicated
provided in Annexure I to this Report. the payment of dividend by e-mail to shareholders in
addition to dispatch of letters to all shareholders. We
8. Compliance with Mandatory Requirements publish the voting results of shareholder meetings
Your Company has complied with all the mandatory and make it available on our website www.wipro.com,
corporate governance requirements under the Listing and report the same to Stock Exchanges in terms of
Regulations. Specifically, your Company confirms Regulation 44 of the Listing Regulations.
compliance with corporate governance requirements
3. Modified opinion(s) in audit report
specified in Regulation 17 to 27 and clauses (b) to (i)
of Sub-Regulation (2) of Regulation 46 of the Listing The Auditors have issued an un-modified opinion on the
Regulations. financial statements of the Company.
9. Certificates from Practising Company Secretary 4. Reporting of Internal Auditor
The certificate dated May 29, 2020, issued by Mr. Reporting of Head of Internal Audit is to the Chairman
V. Sreedharan, Partner, V Sreedharan & Associates, of the Audit, Risk and Compliance Committee and
Company Secretaries, is given at page no. 135 of administratively to the Chief Financial Officer. Head of
this Annual Report in compliance with corporate Internal Audit has regular and exclusive meetings with
governance norms prescribed under the Listing the Audit Committee.
Regulations.
5. NYSE Corporate Governance Listing Standards
The Company has received certificate dated May 29,
2020, from Mr. V. Sreedharan, Partner, V Sreedharan & The Company has made necessary disclosures
Associates, Company Secretaries, confirming that none in compliance with the New York Stock Exchange
of the Directors of the Company have been debarred Listing Standards and NYSE Listed Company Manual
or disqualified from being appointed or continuing as on its website https://www.wipro.com/investors/
director of companies by the SEBI/Ministry of Corporate corporate-governance and has filed the same with the
of Affairs or any such authority. The certificate is given at New York Stock Exchange (NYSE).
page no. 136 of this Annual Report.
Place: Bengaluru Rishad A. Premji
VII. Compliance Report on Discretionary Date: May 29, 2020 Chairman
requirements under Regulation 27(1) of
the Listing Regulations Declaration as required under Regulation 34(3) and
Schedule V of the Listing Regulations
1. The Board
All Directors and senior management personnel of the
As per para A of Part E of Schedule II of the Listing
Company have affirmed compliance with Wipro’s Code of
Regulations, a non-executive Chairman of the Board
Business Conduct for the financial year ended March 31,
may be entitled to maintain a Chairman’s Office at the
2020.
company’s expense and also allowed reimbursement
of expenses incurred in performance of his duties. The
Rishad A. Premji Abidali Z. Neemuchwala
Chairman of the Company is an Executive Director and
Chairman Chief Executive Officer and
hence this provision is not applicable to us.
Managing Director
2. Shareholders rights
Considering the dynamic shareholder demography due Place: Bengaluru
to trading on the stock exchanges, as a prudent measure, Date: May 29, 2020
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ANNEXURE I
Shareholder Information
Annual General Meeting
Pursuant to the General Circular No. 14/2020 dated April 8, 2020, General Circular No. 17/2020 dated April 13, 2020 and General
Circular No. 20/2020 dated May 5, 2020, issued by the Ministry of Corporate Affairs, the 74th Annual General Meeting (AGM) for
the year ended March 31, 2020 is scheduled to be held on Monday, July 13, 2020 at 9.00 AM IST through Video Conferencing.
The Members may attend the 74th AGM scheduled to be held on July 13, 2020, 9:00 AM IST onwards, through VC or watch
the live web-cast at https://emeetings.kfintech.com. Detailed instructions for participation are provided in the notice of the
74th AGM. The proceedings of the 74th AGM will be available through VC and live web-cast to the shareholders as on the cut-off
date i.e. July 6, 2020.
Annual General Meetings of the Last Three Years and Special Resolutions, if any.
Financial Date and
Venue Special resolutions passed
Year Time
2016-17 July 19, 2017 i. Re-appointment of Mr. Azim H. Premji (DIN: 00234280) as
at 4:00 PM Executive Chairman and Managing Director of the Company.
Wipro Campus, Cafeteria ii. Re-appointment of Mr. William Arthur Owens (DIN: 00422976)
Hall EC-3, Ground Floor, as Independent Director of the Company
Opp. Tower 8, No. 72,
2017-18 July 19, 2018 i. Re-appointment of Mrs. Ireena Vittal (DIN: 05195656) as
Keonics, Electronic City,
at 4:00 PM Independent Director of the Company.
Hosur Road, Bengaluru –
2018-19 July 16, 2019 561229 i. Amendments to the Articles of Association of the Company
at 4:00 PM ii. Appointment of Mr. Azim H. Premji (DIN: 00234280) as
Non-Executive, Non-Independent Director of the Company
Details of resolutions passed through postal ballot during Financial Year 2019-20 and details of the voting pattern:
The Company sought the approval of shareholders through notice of postal ballot dated April 16, 2019 for approval for Buyback
of Equity Shares by way of special resolution and for appointment of Mrs. Arundhati Bhattacharya (DIN: 02011213) as an
Independent Director of the Company, by way of ordinary resolution. The aforesaid resolutions were duly passed and the results
of postal ballot/e-voting were announced on June 3, 2019. Mr. V. Sreedharan, Partner of V Sreedharan & Associates, Practicing
Company Secretaries, was appointed as the Scrutinizer to scrutinize the postal ballot and remote e-voting process in a fair and
transparent manner.
% of Votes % of Votes
No. of Votes No. of Votes No. of Votes Cast in Favour Cast Against
Resolution
Polled Cast in Favour Cast Against on Votes on Votes
Polled Polled
a) Approval for Buyback of Equity Shares 5,416,305,336 5,406,747,266 9,558,070 99.82 0.18
b) Appointment of Mrs. Arundhati 5,414,103,223 5,405,400,463 8,702,760 99.84 0.16
Bhattacharya (DIN: 02011213) as an
Independent Director of the Company
The postal ballot is conducted in accordance with the provisions contained in Section 110 and other applicable provisions,
if any, of the Companies Act, 2013, read with Rule 22 of the Companies (Management and Administration) Rules, 2014. The
shareholders are provided the facility to vote either by physical ballot or through e-voting. The postal ballot notice is sent to
shareholders in electronic form to the email addresses, where available, or in physical form through permitted mode where
email addresses are not available. The Company also publishes a notice in the newspapers in accordance with the requirements
under the Companies Act, 2013.
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Wipro Limited
shareholders holding equity shares as on the cut-off date may cast their votes through e-voting or through postal ballot during
the voting period fixed for this purpose. After completion of scrutiny of votes, the scrutinizer submits his report to the Chairman and
the results of voting by postal ballot are announced within 48 hours of conclusion of the voting period. The results are displayed
on the website of the Company (www.wipro.com), and communicated to the Stock Exchanges, Depositories, and Registrar and
Share Transfer Agents. The resolutions, if passed by the requisite majority, are deemed to have been passed on the last date
specified for receipt of duly completed postal ballot forms or e-voting.
We have established procedures to disseminate, in a planned manner, relevant information to our shareholders, analysts,
employees and the society at large. Our Audit, Risk and Compliance Committee reviews the earnings press releases,
Form 20-F filed with the Securities Exchange Commission (SEC) and annual and quarterly reports of the Company, before
they are presented to the Board for their approval for release. The details of the means of communication with shareholders/
analysts are given below:
News Releases and All our news releases and presentations made at investor conferences and to analysts are
Presentations posted on the Company’s website at https://www.wipro.com/investors.
Quarterly results Our quarterly results are published in widely circulated national newspapers such as Financial
Express and the local daily Kannada Prabha.
Website The Company’s website contains a dedicated section for Investors (https://www.wipro.com/
investors), where annual reports, earnings press releases, stock exchange filings, quarterly
reports, and corporate governance policies are available, apart from the details about the
Company, Board of Directors and Management.
Annual Report Annual Report containing audited standalone and consolidated financial statements together
with Board’s Report, Corporate Governance Report, Management Discussion and Analysis
Report, Auditors Report and other important information are circulated to the Members entitled
thereto through permitted mode(s).
Other Disclosures/Filings Our Form 20-F filed with SEC containing detailed disclosures, along with other disclosures
including Press Releases etc., are available at https://www.wipro.com/investors.
Communication of Results:
Financial Calendar
The financial year of the Company starts from the 1st day of April and ends on 31st day of March of next year. Our tentative
calendar for declaration of results for the financial year 2020-21 are as given below. In addition, the Board may meet on other
dates as and when required.
The Register of Members and Share Transfer books will remain closed from Friday, July 10, 2020 to Monday, July 13, 2020
(both days inclusive).
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The details of total fees for all services paid by the Company and its subsidiaries, on a consolidated basis, to the statutory
auditor and all the entities in the network firm/network entity of which the statutory auditor is a part, are as follows:
(` Mn)
Type of Service FY 2019-20 FY 2018-19
Audit Fees 81 73
Tax Fees 51 40
Others 17 12
Total 149 125
Corporate Information
a) Corporate Identity Number (CIN): L32102KA1945PLC020800
b) Company Registration Number: 20800
c) International Securities Identification Number (ISIN): INE075A01022
d) CUSIP Number for Wipro American Depository Shares: 97651M109
e) Details of exchanges where Company’s shares are listed as at March 31, 2020:
Notes:
1. Listing fees for the year 2020-21 have been paid to the Indian Stock Exchanges as on date of this report.
2. Listing fees to NYSE for the calendar year 2020 has been paid as on date of this report.
3. The stock code on Reuters is WIPR.NS and on Bloomberg is WPRO:IN
31-Mar-20 31-Mar-19
Category
(No. of Shares) No. of % of % of Total No. of % of % of Total
No. of Shares No. of Shares
Shareholders Shareholders Equity Shareholders Shareholders Equity
1-5000 507,272 99.10 82,232,977 1.44 329,830 97.55 49,167,404 0.82
5001- 10000 1,697 0.33 12,032,833 0.21 1,793 0.53 12,691,399 0.21
10001- 20000 1,049 0.20 14,869,292 0.26 758 0.22 9,416,449 0.16
20001- 30000 400 0.08 9,808,813 0.17 373 0.11 6,554,524 0.11
30001- 40000 240 0.05 8,376,285 0.15 258 0.08 5,781,677 0.10
40001- 50000 162 0.03 7,250,873 0.13 642 0.19 22,529,224 0.37
50001- 100000 358 0.07 25,599,263 0.45 3,180 0.94 10,973,418 0.18
100001& Above 703 0.14 5,553,187,054 97.20 1,266 0.37 5,916,821,293 98.06
Total 511,881 100.00 5,713,357,390 100.00 338,100 100.00 6,033,935,388 100.00
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Wipro Limited
Market Share Price Data
The performance of our stock in the financial year 2019-20 is tabulated below:
April May June July August September October November December January February March
Volume traded NSE 178,492,453 153,419,897 125,300,252 98,971,963 92,371,363 91,876,505 84,915,080 47,239,668 55,643,470 83,627,949 58,548,600 121,332,817
April May June July August September October November December January February March
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Performance of Wipro equity shares relative to the SENSEX and NYSE Composite index during the period April 1, 2019 to
March 31, 2020 is given in the following chart:
Other Disclosures
Description of Voting Rights All our equity shares carry voting rights on a pari-passu basis
Dematerialisation of Shares and 99.85% of outstanding equity shares have been dematerialized as at March 31,
Liquidity 2020.
Outstanding ADR/GDR/Warrants or The Company has 2.45% of outstanding ADRs as on March 31, 2020.
any other Convertible instruments,
Conversion Date and Likely Impact on
Equity
Commodity Price Risk or Foreign The Company had no exposure to commodity and commodity risks for the financial
Exchange Risk and Hedging Activities year 2019-20. For Foreign exchange risk and hedging activities, please refer the
MD&A Report for details.
Credit Ratings Wipro is rated A- by Standard & Poor (outlook stable), AAA by ICRA (reaffirmed in
May 2020) and 5A1 by Dun & Bradstreet (condition strong) as at March 31, 2020.
There has been no change in ratings during the year.
Plant Locations The Company has various offices in India and abroad. Details of these locations as
on March 31, 2020 are available on our website www.wipro.com.
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Wipro Limited
Investor Queries and Grievances Redressal Please visit https://karisma.kfintech.com/ and click on
“investors” option for query registration through free identity
Shareholders may write either to the Company or the
Registrar and Share Transfer Agents for redressal of queries registration to log on. Investor can submit the query in
and grievances. The address and contact details of the the “QUERIES” option provided on the website, which will
concerned officials are given below. generate the grievance registration number. For accessing the
status/response to your query, please use the same number
Registrar and Share Transfer Agent:
at the option “VIEW REPLY” after 24 hours. The investors can
KFin Technologies Private Limited, Unit: Wipro Limited continue to put additional queries relating to the case till they
Selenium, Tower B, Plot 31-32, Gachibowli, Financial District, are satisfied.
Nanakramguda, Hyderabad – 500 032.
Toll Free No.: 1800 3454 001, Phone: (040) 6716 2222 Shareholders can also send their correspondence to the
Contact Persons: Company with respect to their shares, dividend, request for
annual reports and shareholder grievances. The contact
Mr. B. Srinivas - E-mail id: srinivas.b@kfintech.com details are provided below:
Ms. Rajitha Cholleti - E-mail id: rajitha.cholleti@kfintech.com
Shareholders Grievance can also be sent through email to the Mr. M Sanaulla Khan Ph: +91 80 28440011
following designated E-mail id: einward.ris@kfintech.com. Vice President and Company (Extn: 226185)
Secretary Fax: +91 80 28440054
Overseas Depository for ADSs - J.P. Morgan Chase Bank N.A.
Wipro Limited Email: sanaulla.khan@
383 Madison Avenue, Floor 11 New York, NY10179
General: +1 800 990 1135 Doddakannelli, Sarjapur wipro.com
From outside the U.S.: +1 651 453 2128 Road, Bengaluru - 560 035
Tel: +1 212 552 8926 New York Mr. G Kothandaraman Ph: +91 80 28440011
Email: drx_depo@jpmorgan.com General Manager- Finance (Extn: 226183)
Wipro Limited Fax: +91 80 28440054
Indian Custodian for ADSs
Doddakannelli, Sarjapur Email:kothandaraman.
India Sub Custody
Road, Bengaluru - 560 035 gopal@wipro.com
Office Address: J.P. Morgan Chase Bank,
N.A. Mumbai Branch,
Paradigm B-Wing, 6 th Floor, Mindspace, Malad (W), Analysts can reach our Investor Relations Team for any
Mumbai - 400 064 queries and clarification on Financial/Investor Relations
Phone: +91 022 6649 2515 | F: +91 022 6649 2509 related matters:
The e-mail address and contact details for all service related Ms. Aparna C Iyer Ph: +91 80 28440011
queries is: Vice President, Finance (Extn: 226186)
Corporate Treasurer and Fax: +91 80 28440054
Email id: india.custody.client.service@jpmorgan.com
Investor Relations Email: iyer.aparna@wipro.
Contact Persons: Wipro Limited Doddkannelli, com
Sarjapur Road,
Rohit Keer - E mail id: rohit.a.keer@jpmchase.com,
Bengaluru - 560 035
Nekzad Behramkamdin - E mail id: nekzad.behramkamdin@
jpmorgan.com Mr. Abhishek Kumar Jain Ph: +91 80 28440011
Nayan Vyas - Email id: nayan.x.vyas@jpmorgan.com General Manager, (Extn: 226143)
Investor Relations Ph: +91-98457 91363
Web-Based Query Redressal System Wipro Limited Doddkannelli, Fax: +91 80 28440054
Sarjapur Road, Email: abhishekkumar.jain@
Members may utilize this facility extended by the Registrar
and Share Transfer Agents for redressal of their queries. Bengaluru - 560 035 wipro.com
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To the Members of
Wipro Limited
Doddakannelli, Sarjapur Road,
Bengaluru – 560035
We have examined all the relevant records of Wipro Limited for the purpose of certifying compliance of the conditions of the
Corporate Governance under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 for the financial
year ended March 31, 2020. We have obtained all the information and explanations which to the best of our knowledge and
belief were necessary for the purposes of certification.
The compliance of conditions of corporate governance is the responsibility of the Management. Our examination was limited
to the procedure and implementation process adopted by the Company for ensuring the compliance of the conditions of the
corporate governance.
This certificate is neither an assurance as to the future viability of the Company nor of the efficacy or effectiveness with which
the management has conducted the affairs of the Company.
In our opinion and to the best of our information and according to the explanations and information furnished to us, we certify
that the Company has complied with all the mandatory requirements of Corporate Governance as stipulated in Schedule II of
the said Regulations. As regards Discretionary Requirements specified in Part E of Schedule II of the SEBI (Listing Obligations
and Disclosure Requirements) Regulations, 2015, the Company has complied with items C, D and E.
(V. Sreedharan)
Partner
Bengaluru FCS: 2347; CP No. 833
May 29, 2020 UDIN No. : F002347B000296289
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Wipro Limited
Certificate of Non-Disqualification of Directors
[Pursuant to Regulation 34(3) and Schedule V Para C clause (10)(i) of the SEBI
(Listing Obligations and Disclosure Requirements) Regulations, 2015]
To,
The Members of
WIPRO LIMITED
Doddakannelli, Sarjapur Road,
Bengaluru-560035
We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of WIPRO LIMITED,
having CIN L32102KA1945PLC020800 and having registered office at Doddakannelli, Sarjapur Road, Bengaluru-560035
(hereinafter referred to as ‘the Company’), produced before us by the Company for the purpose of issuing this Certificate, in
accordance with Regulation 34(3) read with Schedule V Para-C Sub clause 10(i) of the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015.
In our opinion and to the best of our information and according to the verifications (including Directors Identification Number
(DIN) status at the portal www.mca.gov.in) as considered necessary and explanations furnished to us by the Company & its
officers, we hereby certify that none of the Directors on the Board of the Company as stated below for the Financial Year ending
on March 31, 2020 have been debarred or disqualified from being appointed or continuing as Directors of companies by the
Securities and Exchange Board of India (SEBI) and Ministry of Corporate Affairs (MCA) or any such other Statutory Authority.
Details of Directors:
Date of appointment in
Sl. No. Name of Director DIN
Company
1. Mr. Azim Premji Hasham 00234280 01/09/1968
2. Mr. Mahendra Kumar Sharma 00327684 01/07/2011
3. Mr. William Arthur Owens 00422976 01/07/2006
4. Mrs. Arundhati Bhattacharya 02011213 01/01/2019
5. Mr. Abidali Z. Neemuchwala 02478060 01/02/2016
6. Mr. Rishad Premji Azim 02983899 01/05/2015
7. Mrs. Ireena Vittal 05195656 01/10/2013
8. Mr. Patrick John Ennis 07463299 01/04/2016
9. Mr. Patrick Lucien Andre Dupuis 07480046 01/04/2016
Ensuring the eligibility for the appointment/continuity of every Director on the Board is the responsibility of the management
of the Company. Our responsibility is to express an opinion based on our verification. This certificate is neither an assurance
as to the future viability of the Company nor of the efficiency or effectiveness with which the management has conducted the
affairs of the Company.
(V. Sreedharan)
Bengaluru Partner
May 29, 2020 FCS: 2347; CP No. 833
UDIN No. : F002347B000296245
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Key Audit Matters How the Key Audit Matter Was Addressed in the Audit
Key audit matters are those matters that, in our professional Our audit procedures related to estimates of efforts to
judgment, were of most significance in our audit of the complete for fixed-price contracts accounted using the
137
Wipro Limited
percentage-of-completion method included the following, economic conditions relating to industries the Company
among others: deals with and the countries where it operates. In calculating
expected credit losses, the Company also considered credit
• We tested the effectiveness of controls relating to (1) reports and other related credit information for its customers
recording of efforts incurred and estimation of efforts to estimate the probability of default in future and has taken
required to complete the remaining contract performance into account estimates of possible effect from the pandemic
obligations, and (2) access and application controls relating to COVID-19.
pertaining to time recording and allocation systems,
which prevents unauthorised changes to recording of We identified allowance for credit losses as a key audit matter
efforts incurred. because of the significant judgement involved in calculating
the expected credit losses. This required a high degree of
• We evaluated management’s ability to reasonably
auditor judgment and an increased extent of effort when
estimate the progress towards satisfying the performance
performing audit procedures to evaluate the reasonableness
obligation by comparing actual information to estimates
of management’s estimate of the expected credit losses.
for performance obligations that have been fulfilled.
• We selected a sample of fixed price contracts with How the Key Audit Matter Was Addressed in the Audit
customers accounted using percentage-of-completion
Our audit procedures related to the allowance for credit
method and performed the following:
losses for trade receivables, unbilled receivables and
• Read the contract and based on the terms and conditions contract assets included the following, among others:
evaluated whether recognizing revenue over time
was appropriate, and the contract was included in • We tested the effectiveness of controls over the (1)
management’s calculation of revenue over time. development of the methodology for the allowance for
credit losses, including consideration of the current and
• Evaluated other information that supported the estimates estimated future economic conditions, (2) completeness
of the progress towards satisfying the performance and accuracy of information used in the estimation
obligation. of probability of default, and (3) computation of the
• Evaluated the appropriateness of and consistency in the allowance for credit losses.
application of management’s policies and methodologies • For a sample of customers we tested the input data such
to estimate progress towards satisfying the performance as credit reports and other credit related information
obligation. used in estimating the probability of default by comparing
• Compared efforts incurred with Company’s estimate of them to external and internal sources of information.
efforts incurred to date to identify significant variations • We evaluated the incorporation of the applicable
and evaluate whether those variations have been assumptions into the estimate of expected credit losses
considered appropriately in estimating the remaining and tested the mathematical accuracy and computation
efforts to complete the contract. of the allowances by using the same input data used by
• Tested the estimate for consistency with the status of the Company.
delivery of milestones and customer acceptances and sign • We evaluated the qualitative adjustment to the historical
off from customers to identify possible delays in achieving loss rates, including assessing the basis for the
milestones, which require changes in estimated efforts to adjustments and the reasonableness of the significant
complete the remaining performance obligations. assumptions.
Allowance for credit losses Refer Notes 2(iii)(g), 3(ix)(A), and Information Other than the Financial Statements and
9 to the financial statements Auditor’s Report Thereon
Key Audit Matter Description • The Company’s Board of Directors is responsible for the
other information. The other information comprises the
The Company determines the allowance for credit losses
information included in the Board’s Report and Corporate
based on historical loss experience adjusted to reflect
Governance Report, but does not include the Consolidated
current and estimated future economic conditions. The
Financial Statements, Standalone Financial Statements
Company considered current and anticipated future
and our auditor’s report thereon.
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• Our opinion on the Standalone Financial Statements does Auditor’s Responsibility for the Audit of the
not cover the other information and we do not express any Standalone Financial Statements
form of assurance conclusion thereon.
Our objectives are to obtain reasonable assurance about
• In connection with our audit of the Standalone Financial
whether the Standalone Financial Statements as a whole
Statements, our responsibility is to read the other
are free from material misstatement, whether due to fraud
information and, in doing so, consider whether the other
or error, and to issue an auditor’s report that includes our
information is materially inconsistent with the Standalone
opinion. Reasonable assurance is a high level of assurance,
Financial Statements or our knowledge obtained during
but is not a guarantee that an audit conducted in accordance
the course of our audit or otherwise appears to be
with SAs will always detect a material misstatement when it
materially misstated.
exists. Misstatements can arise from fraud or error and are
• If, based on the work we have performed, we conclude considered material if, individually or in the aggregate, they
that there is a material misstatement of this other could reasonably be expected to influence the economic
information, we are required to report that fact. We have decisions of users taken on the basis of these Standalone
nothing to report in this regard. Financial Statements.
Management’s Responsibility for the Standalone As part of an audit in accordance with SAs, we exercise
Financial Statements professional judgment and maintain professional skepticism
throughout the audit. We also:
The Company’s Board of Directors is responsible for the
matters stated in section 134(5) of the Act with respect to • Identify and assess the risks of material misstatement
the preparation of these Standalone Financial Statements of the Standalone Financial Statements, whether due
that give a true and fair view of the financial position, to fraud or error, design and perform audit procedures
financial performance including other comprehensive responsive to those risks, and obtain audit evidence that
income, changes in equity and cash flows of the Company in is sufficient and appropriate to provide a basis for our
accordance with the Ind AS and other accounting principles opinion. The risk of not detecting a material misstatement
generally accepted in India. This responsibility also includes resulting from fraud is higher than for one resulting from
maintenance of adequate accounting records in accordance error, as fraud may involve collusion, forgery, intentional
with the provisions of the Act for safeguarding the assets of omissions, misrepresentations, or the override of internal
the Company and for preventing and detecting frauds and control.
other irregularities; selection and application of appropriate • Obtain an understanding of internal financial control
accounting policies; making judgments and estimates that relevant to the audit in order to design audit procedures
are reasonable and prudent; and design, implementation that are appropriate in the circumstances. Under section
and maintenance of adequate internal financial controls, 143(3)(i) of the Act, we are also responsible for expressing
that were operating effectively for ensuring the accuracy our opinion on whether the Company has adequate
and completeness of the accounting records, relevant to the internal financial controls system in place and the
preparation and presentation of the Standalone Financial operating effectiveness of such controls.
Statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error. • Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and
In preparing the Standalone Financial Statements, related disclosures made by the management.
management is responsible for assessing the Company’s
ability to continue as a going concern, disclosing, as • Conclude on the appropriateness of management’s use of
applicable, matters related to going concern and using the the going concern basis of accounting and, based on the
going concern basis of accounting unless management either audit evidence obtained, whether a material uncertainty
intends to liquidate the Company or to cease operations, or exists related to events or conditions that may cast
has no realistic alternative but to do so. significant doubt on the Company’s ability to continue
as a going concern. If we conclude that a material
Those Board of Directors are also responsible for overseeing uncertainty exists, we are required to draw attention
the Company’s financial reporting process. in our auditor’s report to the related disclosures in the
Standalone Financial Statements or, if such disclosures
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Wipro Limited
are inadequate, to modify our opinion. Our conclusions explanations which to the best of our knowledge and
are based on the audit evidence obtained up to the date of belief were necessary for the purposes of our audit.
our auditor’s report. However, future events or conditions
may cause the Company to cease to continue as a going b) In our opinion, proper books of account as required
concern. by law have been kept by the Company so far as it
appears from our examination of those books.
• Evaluate the overall presentation, structure and content
of the Standalone Financial Statements, including the c) The Balance Sheet, the Statement of Profit and
disclosures, and whether the Standalone Financial Loss (including Other Comprehensive Income), the
Statements represent the underlying transactions and Statement of Changes in Equity and the Statement of
events in a manner that achieves fair presentation. Cash Flows dealt with by this Report are in agreement
with the relevant books of account.
Materiality is the magnitude of misstatements in the
Standalone Financial Statements that, individually or in d) In our opinion, the aforesaid Standalone Financial
aggregate, makes it probable that the economic decisions of Statements comply with the Ind AS specified under
a reasonably knowledgeable user of the Standalone Financial Section 133 of the Act.
Statements may be influenced. We consider quantitative
materiality and qualitative factors in (i) planning the scope of e) On the basis of the written representations received
our audit work and in evaluating the results of our work; and from the directors as on March 31, 2020 taken on
(ii) to evaluate the effect of any identified misstatements in record by the Board of Directors, none of the directors
the Standalone Financial Statements. is disqualified as on March 31, 2020 from being
appointed as a director in terms of Section 164(2) of
We communicate with those charged with governance the Act.
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including f) With respect to the adequacy of the internal financial
any significant deficiencies in internal control that we identify controls over financial reporting of the Company and
during our audit. the operating effectiveness of such controls, refer
to our separate Report in “Annexure A”. Our report
We also provide those charged with governance with a expresses an unmodified opinion on the adequacy
statement that we have complied with relevant ethical and operating effectiveness of the Company’s internal
requirements regarding independence, and to communicate financial controls over financial reporting.
with them all relationships and other matters that may
reasonably be thought to bear on our independence, and g) With respect to the other matters to be included in the
where applicable, related safeguards. Auditor’s Report in accordance with the requirements
of section 197(16) of the Act, as amended, in our opinion
From the matters communicated with those charged with
and to the best of our information and according to
governance, we determine those matters that were of
the explanations given to us, the remuneration paid
most significance in the audit of the Standalone Financial
by the Company to its directors during the year is in
Statements of the current period and are therefore the key
accordance with the provisions of section 197 of the
audit matters. We describe these matters in our auditor’s
Act.
report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, h) With respect to the other matters to be included in
we determine that a matter should not be communicated in the Auditor’s Report in accordance with Rule 11 of
our report because the adverse consequences of doing so the Companies (Audit and Auditors) Rules, 2014,
would reasonably be expected to outweigh the public interest as amended, in our opinion and to the best of our
benefits of such communication. information and according to the explanations given
to us:
Report on Other Legal and Regulatory
Requirements i. The Company has disclosed the impact of
pending litigations on its financial position in its
1. As required by Section 143(3) of the Act, based on our Standalone Financial Statements;
audit we report, that:
ii. The Company has made provision, as required
a) We have sought and obtained all the information and
under the applicable law or accounting
140
Annual Report 2019-20
Corporate Overview | Management & Board Reports | Financial Statements
standards, for material foreseeable losses, if B” a statement on the matters specified in paragraphs 3
any, on long-term contracts including derivative and 4 of the Order.
contracts;
For DELOITTE HASKINS & SELLS LLP
iii. There has been no delay in transferring amounts, Chartered Accountants
required to be transferred, to the Investor Firm Registration Number: 117366W/W-100018
Education and Protection Fund by the Company. Vikas Bagaria
Partner
2. As required by the Companies (Auditor’s Report) Order,
Membership number: 60408
2016 (“the Order”) issued by the Central Government in
terms of Section 143(11) of the Act, we give in “Annexure Bengaluru
May 29, 2020
141
Wipro Limited
Meaning of Internal Financial Controls over not be detected. Also, projections of any evaluation of the
Financial Reporting internal financial controls over financial reporting to future
periods are subject to the risk that the internal financial
A company’s internal financial control over financial reporting control over financial reporting may become inadequate
is a process designed to provide reasonable assurance because of changes in conditions, or that the degree of
regarding the reliability of financial reporting and the compliance with the policies or procedures may deteriorate.
preparation of financial statements for external purposes in
accordance with generally accepted accounting principles. A Opinion
company’s internal financial control over financial reporting In our opinion, to the best of our information and according to
includes those policies and procedures that (1) pertain to the the explanations given to us, the Company has, in all material
maintenance of records that, in reasonable detail, accurately respects, an adequate internal financial controls system
and fairly reflect the transactions and dispositions of the over financial reporting and such internal financial controls
assets of the company; (2) provide reasonable assurance over financial reporting were operating effectively as at
that transactions are recorded as necessary to permit March 31, 2020, based on, the internal control over financial
preparation of financial statements in accordance with reporting criteria established by the Company considering
generally accepted accounting principles, and that receipts the essential components of internal control stated in the
and expenditures of the company are being made only in Guidance Note on Audit of Internal Financial Controls Over
accordance with authorisations of management and directors Financial Reporting issued by the Institute of Chartered
of the company; and (3) provide reasonable assurance Accountants of India.
regarding prevention or timely detection of unauthorised
acquisition, use, or disposition of the company’s assets that For DELOITTE HASKINS & SELLS LLP
could have a material effect on the financial statements. Chartered Accountants
Firm Registration Number: 117366W/W-100018
Inherent Limitations of Internal Financial
Vikas Bagaria
Controls over Financial Reporting
Partner
Because of the inherent limitations of internal financial Membership number: 60408
controls over financial reporting, including the possibility Bengaluru
of collusion or improper management override of controls, May 29, 2020
material misstatements due to error or fraud may occur and
142
Annual Report 2019-20
Corporate Overview | Management & Board Reports | Financial Statements
(i) In respect of the Company’s fixed assets: (c) There is no overdue amount remaining outstanding
as at the year-end.
(a) The Company has maintained proper records
showing full particulars, including quantitative (iv) In our opinion and according to the information and
details and situation of fixed assets. explanations given to us, the Company has complied
with the provisions of Sections 185 and 186 of the Act
(b) The Company has a program of verification to cover in respect of grant of loans, making investments and
all the items of fixed assets in a phased manner providing guarantees and securities, as applicable.
over a period of 3 years which, in our opinion,
is reasonable having regard to the size of the (v) According to the information and explanations given to
Company and the nature of its assets. Pursuant to us the Company has not accepted any deposit during
the program, certain fixed assets were physically the year and does not have any unclaimed deposits
verified by the management during the year. as at March 31, 2020 and therefore, the provisions of
According to the information and explanations the clause 3 (v) of the Order are not applicable to the
given to us, no material discrepancies were noticed Company.
on such verification.
(vi) Maintenance of cost records has not been specified by
(c) According to the information and explanations given the Central Government under Section 148(1) of the Act,
to us, the records examined by us and based on the for the business activities carried out by the Company.
examination of the conveyance deeds/registered Thus reporting under Clause 3(vi) of the order is not
sale deeds provided to us, we report that, the title applicable to the Company.
deeds, comprising the immovable properties of
land and buildings which are freehold, are held in (vii) According to the information and explanations given to
the name of the Company as at the balance sheet us, in respect of statutory dues:
date. Title deed of a land with a carrying amount
(a) The Company has generally been regular in
of Rs. 404 million, pursuant to an agreement for
depositing undisputed statutory dues, including
sale, is pending to be registered in the name of the
Provident Fund, Employees’ State Insurance,
Company.
Income Tax, Sales Tax, Service Tax, Goods and
(ii) As explained to us, the inventories were physically Services Tax, Value Added Tax, Customs Duty,
verified during the year by the management at Excise Duty, Cess and other material statutory dues
reasonable intervals. There were no material applicable to it with the appropriate authorities.
discrepancies noticed on physical verification during
(b) There were no undisputed amounts payable in
the year.
respect of Provident Fund, Employees’ State
(iii) According to the information and explanations given Insurance, Income Tax, Sales Tax, Service Tax, Value
to us, the Company has granted unsecured loans to Added Tax, Goods and Services Tax, Customs Duty,
one body corporate, covered in the register maintained Excise Duty, Cess and other material statutory
under section 189 of the Companies Act, 2013, in dues in arrears as at March 31, 2020 for a period of
respect of which: more than six months from the date they became
payable.
(a) The terms and conditions of the grant of such loans
are, in our opinion, prima facie, not prejudicial to (c) Details of dues of Income Tax, Sales Tax, Service
the Company’s interest. Tax, Customs Duty, Excise Duty and Value Added
Tax which have not been deposited as at March 31,
(b) The schedule of repayment of principal and 2020 on account of dispute are given below:
143
Wipro Limited
` in millions
Amount not
Forum where dispute Period to which the Amount deposited as
Name of Statute Nature of dues
is pending amount relates Involved at March 31,
2020
The Central Excise Act, 1944 Excise Duty Assistant 1990-91 to 2014-15 57 52
Commissioner
The Central Excise Act, 1944 Excise Duty Commissioner 2004-05 to 2014-15 10 10
The Central Excise Act, 1944 Excise Duty Commissioner 1994-95 to 2012-13 13 13
(Appeals)
The Central Excise Act, 1944 Excise Duty CESTAT 1990-2000 to 2012- 37 25
13
The Central Excise Act, 1944 Excise Duty High Court 2007-08, 1 1
2008-09
The Customs Act, 1962 Customs Duty Assistant 1994-95 to 2010-11 49 45
Commissioner of
Customs
The Customs Act, 1962 Customs Duty CESTAT 1991-92 to 11 4
2011-12
The Customs Act, 1962 Customs Duty Commissioner 2005-06 94 90
The Customs Act, 1962 Customs Duty Commissioner 1997-98 to 338 308
(Appeals) 2009-10
The Customs Act, 1962 Customs Duty Deputy Commissioner 2009-10 5 5
- Air Customs –Chennai
The Customs Act, 1962 Customs Duty Madras High Court 2009-10 4 4
The Customs Act, 1962 Customs Duty- Karnataka High Court 2001-02 to 2005-06 2,711 2,631
Penalty
Finance Act, 1994 Service tax Assistant 2003-04 to 2015-16 367 366
Commissioner
Finance Act, 1994 Service tax Commissioner 2003-04 to 465 119
(Appeals) 2015-16
Finance Act, 1994 Service tax CESTAT 2001-02 to 2,956 2,255
2011-12
Finance Act, 1994 Service Tax- Penalty Commissioner 2005-06 to 2009-10 29 29
(Appeals)
Finance Act, 1994 Service Tax- Penalty Assistant 2008-09, 2009-10 1 1
Commissioner
Finance Act, 1994 Service Tax- Penalty CESTAT 2001-02 to 2011-12 642 642
Sales Tax / VAT Sales Tax / VAT Assistant 1986-87 to 2015-16 988 867
Commissioner/ Deputy
Commissioner
Sales Tax / VAT Sales Tax / VAT Commissioner 1988-89 to 2,598 2,400
(Appeals) 2016-17
Sales Tax / VAT Sales Tax / VAT Appellate Authorities 1986-87 to 2010-11 1,324 1,160
Sales Tax / VAT Sales Tax / VAT High Court 1998-99 to 2013-14 31 27
Sales Tax/ VAT Sales Tax/ VAT Supreme Court 2001-02 12 12
144
Annual Report 2019-20
Corporate Overview | Management & Board Reports | Financial Statements
Amount not
Forum where dispute Period to which the Amount deposited as
Name of Statute Nature of dues
is pending amount relates Involved at March 31,
2020
Goods and Services Tax Goods and Services Commissioner 2017-18 58 58
Tax (Appeals)
The Income Tax Act, 1961 Income Tax - TDS CIT(A) - TDS 2003-04, 2011-12 35 35
The Income Tax Act, 1961 Income Tax – TDS Income Tax Appellate 2009-10 13 3
Tribunal
The Income Tax Act, 1961 Income Tax - TDS High Court 2010-11 61 61
The Income Tax Act, 1961 Income Tax Assessing Officer 2007-08 97 42
The Income Tax Act, 1961 Income Tax Income Tax Appellate 2006-07, 2007-08 6,407 1,529
Tribunal 2009-10, 2010-11,
2012-13 to 2014-15
(viii) In our opinion and according to the information for all transactions with the related parties and
and explanations given to us, the Company has not the details of related party transactions have been
defaulted in the repayment of loans or borrowings to disclosed in the Standalone Financial Statements as
financial institutions, and banks. The Company has not required by the applicable accounting standards.
availed any loans or borrowings from Government. The
(xiv) During the year, the Company has not made any
Company has not issued any debentures.
preferential allotment or private placement of shares
(ix) The Company has not raised moneys by way of initial or fully or partly paid convertible debentures and
public offer or further public offer (including debt hence, reporting under clause 3 (xiv) of the Order is not
instruments) or term loans during the year, hence applicable to the Company.
reporting under clause 3(ix) of the Order is not applicable
(xv) In our opinion and according to the information and
to the company.
explanations given to us, during the year the Company
(x) To the best of our knowledge and according to the has not entered into any non-cash transactions with
information and explanations given to us, no fraud by its Directors or persons connected to its directors and
the Company or no material fraud on the Company by hence provisions of section 192 of the Act, are not
its officers or employees has been noticed or reported applicable to the Company.
during the year.
(xvi) The Company is not required to be registered under
(xi) In our opinion and according to the information and section 45-IA of the Reserve Bank of India Act, 1934.
explanations given to us, the Company has paid/
provided managerial remuneration in accordance with
For DELOITTE HASKINS & SELLS LLP
the requisite approvals mandated by the provisions of
Chartered Accountants
section 197 read with Schedule V to the Act.
Firm Registration Number: 117366W/W-100018
(xii) The Company is not a Nidhi Company and hence
reporting under clause 3 (xii) of the Order is not Vikas Bagaria
applicable to the Company. Partner
Membership number: 60408
(xiii) In our opinion and according to the information and
explanations given to us, the Company is in compliance Bengaluru
with Section 177 and 188 of the Act, where applicable, May 29, 2020
145
Wipro Limited
Balance Sheet
(` in millions, except share and per share data, unless otherwise stated)
As at As at
Notes
March 31, 2020 March 31, 2019
ASSETS
Non-current assets
Property, plant and equipment 4 50,473 38,742
Right-of-Use Assets 5 8,160 -
Capital work-in-progress 18,735 21,127
Goodwill 6 4,571 3,882
Other intangible assets 6 3,190 1,386
Financial assets
Investments 8 77,350 82,503
Derivative assets 20 - 173
Trade receivables 9 4,462 4,373
Other financial assets 11 4,416 3,843
Deferred tax assets (net) 21 4,333 3,910
Non-current tax assets (net) 11,103 20,549
Other non-current assets 13 9,138 12,189
Total non-current assets 195,931 192,677
Current assets
Inventories 12 1,741 3,403
Financial assets
Investments 8 189,635 219,988
Trade receivables 9 92,570 90,463
Cash and cash equivalents 10 104,440 103,902
Derivative assets 20 2,964 4,920
Unbilled receivables 17,964 16,023
Loans to subsidiaries 9,472 -
Other financial assets 11 6,807 5,813
Current tax assets (net) 839 3,307
Contract assets 12,432 10,845
Other current assets 13 18,269 18,640
Total current assets 457,133 477,304
TOTAL ASSETS 653,064 669,981
EQUITY
Equity Share capital 14 11,427 12,068
Other equity 453,110 481,852
TOTAL EQUITY 464,537 493,920
LIABILITIES
Non-current liabilities
Financial liabilities
Borrowings 15 251 220
Derivative liabilities 20 138 -
Other financial liabilities 17 146 -
Lease Liabilities 15 5,997 -
146
Annual Report 2019-20
Corporate Overview | Management & Board Reports | Financial Statements
Balance Sheet
(` in millions, except share and per share data, unless otherwise stated)
As at As at
Notes
March 31, 2020 March 31, 2019
The accompanying notes form an integral part of these standalone financial statements
As per our report of even date attached For and on behalf of the Board of Directors
for Deloitte Haskins & Sells LLP Rishad A Premji M K Sharma Abidali Z Neemuchwala
Chartered Accountants Chairman Director Chief Executive Officer &
Firm's Registration No.: 117366W/W - 100018 Managing Director
Vikas Bagaria Jatin Pravinchandra Dalal M. Sanaulla Khan
Partner Chief Financial Officer Company Secretary
Membership No.: 60408
Bengaluru Bengaluru
May 29, 2020 May 29, 2020
147
Wipro Limited
Statement of Profit and Loss
(` in millions, except share and per share data, unless otherwise stated)
Year ended Year ended
Notes
March 31, 2020 March 31, 2019
INCOME
Revenue from operations 22 503,877 480,298
Other operating income 23 193 940
Other income 24 24,766 25,686
Total Income 528,836 506,924
EXPENSES
Purchases of stock-in-trade 7,983 11,420
Changes in inventories of finished goods and stock-in-trade 25 1,599 (553)
Employee benefits expense 26 261,718 238,085
Finance costs 27 5,352 5,249
Depreciation and amortization expense 11,411 9,343
Sub-contracting / technical fees / third party application 87,918 89,225
Travel 15,373 15,005
Facility expenses 13,925 14,598
Communication 3,784 3,698
Legal and professional charges 2,784 2,525
Marketing and brand building 2,227 2,304
Other expenses 28 4,685 17,320
Total expenses 418,759 408,219
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Annual Report 2019-20
Corporate Overview | Management & Board Reports | Financial Statements
Total other comprehensive (loss)/ income for the year, net of taxes (4,284) 1,246
Number of shares
Basic 5,833,384,018 6,007,376,837
Diluted 5,847,823,239 6,022,304,367
The accompanying notes form an integral part of these standalone financial statements
As per our report of even date attached For and on behalf of the Board of Directors
for Deloitte Haskins & Sells LLP Rishad A Premji M K Sharma Abidali Z Neemuchwala
Chartered Accountants Chairman Director Chief Executive Officer &
Firm's Registration No.: 117366W/W - 100018 Managing Director
Vikas Bagaria Jatin Pravinchandra Dalal M. Sanaulla Khan
Partner Chief Financial Officer Company Secretary
Membership No.: 60408
Bengaluru Bengaluru
May 29, 2020 May 29, 2020
149
Wipro Limited
Statement of Changes in Equity
(` in millions, except share and per share data, unless otherwise stated)
Equity share capital
Balance as at April 1, 2019 Change in equity share capital Balance as at March 31, 2020
12,068 (641) 11,427
Other equity
Reserves and Surplus
Share
Common Special Foreign Cash
application Share
Securities Capital Control economic currency flow Other Total other
Particulars money Capital Retained options
Premium redemption Transactions Zone re- translation hedging reserves equity
pending reserve earnings outstanding
Reserve reserve Capital investment reserve reserve
allotment account
Reserve reserve
Balance as at April 1, 2019 ^ 145 1,139 14 443,791 2,473 2,617 28,565 1,882 2,424 (1,198) 481,852
Adjustment on adoption of Ind AS 116## - - - - (414) - - - - - - (414)
Adjusted balance as at April 1, 2019 ^ 145 1,139 14 443,377 2,473 2,617 28,565 1,882 2,424 (1,198) 481,438
Profit for the year - - - - 86,807 - - - - - - 86,807
Other comprehensive income / (loss) - - - - - - - - - (4,739) 455 (4,284)
150
Total comprehensive income for the year - - - - 86,807 - - - - (4,739) 455 82,523
Issue of equity shares on exercise of options - 742 - - - - (742) - - - - -
Issue of shares by controlled trust on exercise of
options * - - - - 1,026 - (1,026) - - - - -
Cash dividend paid (including dividend tax thereon) # - - - - (6,887) - - - - - - (6,887)
Buyback of equity shares # - - - 646 (105,000) - - - - - - (104,354)
Transaction cost related to buyback - - - - (311) - - - - - - (311)
Compensation cost related to employee share based
payment transactions - - - - - - 1,262 - - - - 1,262
Transferred to special economic zone re-investment
reserve - - - - (15,239) - - 15,239 - - - -
Effect of modification of ADS / RSU from equity settled
to cash settled ### - - - - - - (561) - - - - (561)
- 742 - 646 (39,604) - (1,067) 15,239 - (4,739) 455 (28,328)
Balance as at March 31, 2020 ^ 887 1,139 660 403,773 2,473 1,550 43,804 1,882 (2,315) (743) 453,110
# Refer to Note 30
## Refer to Note 3
### Refer to Note 32
*4,607,772 shares have been issued by the controlled trust to eligible employees on exercise of options during the year ended March 31, 2020.
^ Value is less than `1
Statement of Changes in Equity
(` in millions, except share and per share data, unless otherwise stated)
151
based payment transactions - - - - - - 1,938 - - - - 1,938
Corporate Overview |
The accompanying notes form an integral part of these standalone financial statements
As per our report of even date attached For and on behalf of the Board of Directors
for Deloitte Haskins & Sells LLP Rishad A Premji M K Sharma Abidali Z Neemuchwala
Management & Board Reports |
Wipro Limited
Statement of Cash Flows
(` in millions, except share and per share data, unless otherwise stated)
For the year ended For the year ended
March 31, 2020 March 31, 2019
Cash flows from operating activities:
Profit for the year 86,807 76,140
Adjustments to reconcile profit for the year to net cash
generated from operating activities:
(Gain)/ Loss on sale of property, plant and equipment, net 10 (182)
Depreciation and amortization expense 11,411 9,343
Unrealized exchange (gain)/loss, net and exchange loss on borrowings 6,602 (278)
Share-based compensation expense 1,262 1,846
Income tax expense 23,270 22,565
Dividend and interest (income)/expenses, net (20,460) (17,059)
Gain from sale of business and loss of control in subsidiary, net (193) (940)
Provision for diminution in the value of non-current investments - 7,356
Changes in operating assets and liabilities:
Trade receivables (2,058) 4,769
Unbilled receivables and contract assets (3,295) 3,773
Inventories 1,663 (459)
Other assets (503) 130
Trade payables, other liabilities and provisions (7,341) 16,877
Contract liabilities (590) 2,009
Cash generated from operating activities before taxes 96,585 125,890
Income taxes paid, net (5,904) (23,789)
Net cash generated from operating activities 90,681 102,101
Cash flows from investing activities:
Purchase of property, plant and equipment (18,326) (18,688)
Proceeds from sale of property, plant and equipment 490 1,023
Purchase of investments (1,176,999) (924,397)
Investment in subsidiaries - (36,226)
Proceeds from sale of investments 1,209,778 953,979
Proceeds from Redemption of Preference Shares in Subsidiaries 5,055 -
Loans to subsidiaries (9,472) -
Proceeds from sale of hosted data centre business and loss
of control in subsidiary, net of related expenses and cash 923 646
Payment for business acquisition, including deposits and
escrow, net of cash acquired (3,230) -
152
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Corporate Overview | Management & Board Reports | Financial Statements
The accompanying notes form an integral part of these standalone financial statements
As per our report of even date attached For and on behalf of the Board of Directors
for Deloitte Haskins & Sells LLP Rishad A Premji M K Sharma Abidali Z Neemuchwala
Chartered Accountants Chairman Director Chief Executive Officer &
Firm's Registration No.: 117366W/W - 100018 Managing Director
Vikas Bagaria Jatin Pravinchandra Dalal M. Sanaulla Khan
Partner Chief Financial Officer Company Secretary
Membership No.. 60408
Bengaluru Bengaluru
May 29, 2020 May 29, 2020
153
Wipro Limited
Notes to the Standalone Financial Statements
(` in millions, except share and per share data, unless otherwise stated)
1. The Company overview material items, which have been measured at fair value as
Wipro Limited (“Wipro” or the “Company” or “we” or “our” or required by relevant Ind AS:
“us”), is a global information technology (“IT”), consulting and
business process services (“BPS”) company. a) Derivative financial instruments,
b) Financial instruments classified as fair value through other
Wipro is a public limited company incorporated and domiciled comprehensive income or fair value through profit or loss,
in India. The address of its registered office is Wipro Limited, and
Doddakannelli, Sarjapur Road, Bengaluru – 560 035, Karnataka,
c) The defined benefit asset/(liability) is recognized as the
India. Wipro has its primary listing with BSE Ltd. (Bombay
present value of defined benefit obligation less fair value of
Stock Exchange) and National Stock Exchange of India Ltd. The
plan assets.
Company’s American Depository Shares representing equity
shares are also listed on the New York Stock Exchange. d) Contingent consideration
These financial statements were authorized for issue by the (iii) Use of estimates and judgment
Company’s Board of Directors on May 29, 2020.
The preparation of the financial statements in conformity with
Ind AS requires management to make judgments, estimates and
2. Basis of preparation of financial statements
assumptions that affect the application of accounting policies
(i) Statement of compliance and basis of preparation and the reported amounts of assets, liabilities, income and
expenses. Actual results may differ from those estimates.
The standalone financial statements have been prepared in
accordance with Indian Accounting Standards (“Ind AS”), the Estimates and underlying assumptions are reviewed on an
provisions of the Companies Act, 2013 (“the Companies Act”), ongoing basis. Revisions to accounting estimates are recognized
as applicable and guidelines issued by the Securities and in the period in which the estimates are revised and in any future
Exchange Board of India (“SEBI”). The Ind AS are prescribed periods affected. In particular, information about significant
under Section 133 of the Companies Act, 2013 read with Rule areas of estimation, uncertainty and critical judgments in
3 of the Companies (Indian Accounting Standards) Rules, 2015 applying accounting policies that have the most significant
and Companies (Indian Accounting Standards) Amendment effect on the amounts recognized in the financial statements
Rules, 2016. are included in the following notes:
Accounting policies have been applied consistently to all a) Revenue recognition: The Company applies judgement to
periods presented in these financial statements, except for new determine whether each product or service promised to
accounting standards adopted by the Company. a customer is capable of being distinct, and is distinct in
the context of the contract, if not, the promised products
The financial statements correspond to the classification or services are combined and accounted as a single
provisions contained in Ind AS 1, “Presentation of Financial performance obligation. The Company allocates the
Statements”. For clarity, various items are aggregated in the arrangement consideration to separately identifiable
statement of profit and loss and balance sheet. These items performance obligation deliverables based on their relative
are disaggregated separately in the notes to the financial stand-alone selling price. In cases where the Company
statements, where applicable. is unable to determine the stand-alone selling price the
Company uses expected cost plus margin approach in
All amounts included in the financial statements are reported estimating the stand-alone selling price. The Company
in millions of Indian rupees (` in millions) except share and per uses the percentage of completion method using the input
share data, unless otherwise stated. Due to rounding off, the (cost expended) method to measure progress towards
numbers presented throughout the document may not add up completion in respect of fixed price contracts. Percentage
precisely to the totals and percentages may not precisely reflect of completion method accounting relies on estimates of
the absolute figures. Previous year figures have been regrouped/ total expected contract revenue and costs. This method
re-arranged, wherever necessary. is followed when reasonably dependable estimates of the
revenues and costs applicable to various elements of the
(ii) Basis of measurement contract can be made. Key factors that are reviewed in
These financial statements have been prepared on a historical estimating the future costs to complete include estimates
cost convention and on an accrual basis, except for the following of future labor costs and productivity efficiencies. Because
154
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Corporate Overview | Management & Board Reports | Financial Statements
the financial reporting of these contracts depends on date fair value of the identifiable assets (including useful
estimates that are assessed continually during the term life estimates) and liabilities acquired, and contingent
of these contracts, revenue recognized, profit and timing of consideration assumed involves management judgment.
revenue for remaining performance obligations are subject These measurements are based on information available
to revisions as the contract progresses to completion. at the acquisition date and are based on expectations
When estimates indicate that a loss will be incurred, the and assumptions that have been deemed reasonable by
loss is provided for in the period in which the loss becomes management. Changes in these judgments, estimates, and
probable. Volume discounts are recorded as a reduction assumptions can materially affect the results of operations.
of revenue. When the amount of discount varies with the
levels of revenue, volume discount is recorded based on f) Defined benefit plans and compensated absences: The
estimate of future revenue from the customer. cost of the defined benefit plans, compensated absences
and the present value of the defined benefit obligations are
b) Impairment testing: Investments in subsidiaries, goodwill based on actuarial valuation using the projected unit credit
and intangible assets with infinite useful life recognized method. An actuarial valuation involves making various
on business combination are tested for impairment at assumptions that may differ from actual developments in
least annually and when events occur or changes in the future. These include the determination of the discount
circumstances indicate that the recoverable amount of the rate, future salary increases and mortality rates. Due to
asset or the cash generating unit to which these pertain the complexities involved in the valuation and its long-
is less than the carrying value. The Company assesses term nature, a defined benefit obligation is highly sensitive
acquired intangible assets with finite useful life for to changes in these assumptions. All assumptions are
impairment whenever events or changes in circumstances reviewed at each reporting date.
indicate that the carrying amount may not be recoverable.
The recoverable amount of the asset or the cash generating g) Expected credit losses on financial assets: The
units is higher of value in use and fair value less cost of impairment provisions of financial assets are based on
disposal. The calculation of value in use of an asset or a assumptions about risk of default and expected timing of
cash generating unit involves use of significant estimates collection. The Company uses judgment in making these
and assumptions which include turnover, growth rates and assumptions and selecting the inputs to the expected
net margins used to calculate projected future cash flows, credit loss calculation based on the Company’s history of
risk-adjusted discount rate, future economic and market collections, customer’s creditworthiness, existing market
conditions. conditions as well as forward looking estimates at the end
of each reporting period.
c) Income taxes: The major tax jurisdictions for the Company
are India and the United States of America. Significant h) Measurement of fair value of non-marketable equity
judgments are involved in determining the provision for investments: These instruments are initially recorded at
income taxes including judgment on whether tax positions cost and subsequently measured at fair value. Fair value
are probable of being sustained in tax assessments. A tax of investments is determined using the market and income
assessment can involve complex issues, which can only be approaches. The market approach includes the use of
resolved over extended time periods. financial metrics and ratios of comparable companies, such
as revenue, earnings, comparable performance multiples,
d) Deferred taxes: Deferred tax is recorded on temporary recent financial rounds and the level of marketability of
differences between the tax bases of assets and liabilities the investments. The selection of comparable companies
and their carrying amounts, at the rates that have been requires management judgment and is based on a number
enacted or substantively enacted at the reporting date. The of factors, including comparable company sizes, growth
ultimate realization of deferred tax assets is dependent rates and development stages. The income approach
upon the generation of future taxable profits during the includes the use of discounted cash flow model, which
periods in which those temporary differences and tax loss requires significant estimates regarding the investees’
carry-forwards become deductible. The Company considers revenue, costs, and discount rates based on the risk profile
expected reversal of deferred tax liabilities and projected of comparable companies. Estimates of revenue and costs
future taxable income in making this assessment. The are developed using available historical and forecast data.
amount of deferred tax assets considered realisable,
however, could reduce in the near term if estimates of i) Useful lives of property, plant and equipment: The
future taxable income during the carry-forward period are Company depreciates property, plant and equipment on a
reduced. straight-line basis over estimated useful lives of the assets.
The charge in respect of periodic depreciation is derived
e) Business combination: In accounting for business based on an estimate of an asset’s expected useful life
combinations, judgment is required in identifying whether and the expected residual value at the end of its life. The
an identifiable intangible asset is to be recorded separately lives are based on historical experience with similar assets
from goodwill. Additionally, estimating the acquisition as well as anticipation of future events, which may impact
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their lives, such as changes in technology. The estimated The impact of COVID-19 remains uncertain and may be
useful life is reviewed at least annually. different from what we have estimated as of the date of
approval of these standalone financial statements and
j) Useful lives of intangible assets: The Company amortizes the Company will continue to closely monitor any material
intangible assets on a straight-line basis over estimated changes to future economic conditions.
useful lives of the assets. The useful life is estimated
based on a number of factors including the effects of
obsolescence, demand, competition and other economic 3. Significant accounting policies
factors such as the stability of the industry and known
technological advances and the level of maintenance (i) Functional and presentation currency
expenditures required to obtain the expected future cash These financial statements are presented in Indian rupees,
flows from the assets. The estimated useful life is reviewed which is the functional currency of the Company.
at least annually.
(ii) Foreign currency transactions and translation
k) Leases: Ind AS 116 defines a lease term as the non- Transactions in foreign currency are translated into the
cancellable period for which the lessee has the right to use functional currency using the exchange rates prevailing at the
an underlying asset including optional periods, when an date of the transaction. Foreign exchange gains and losses
entity is reasonably certain to exercise an option to extend resulting from the settlement of such transactions and from
(or not to terminate) a lease. The Company considers all translation at the exchange rates prevailing at the reporting
relevant facts and circumstances that create an economic date of monetary assets and liabilities denominated in foreign
incentive for the lessee to exercise the option when currencies are recognized in the statement of profit and loss
determining the lease term. The option to extend the lease and reported within foreign exchange gains/(losses), net, within
term is included in the lease term, if it is reasonably certain results of operating activities except when deferred in other
that the lessee would exercise the option. The Company comprehensive income as qualifying cash flow hedges and
reassesses the option when significant events or changes qualifying net investment hedges. Gains/(losses), net, relating to
in circumstances occur that are within the control of the translation or settlement of borrowings denominated in foreign
lessee. currency are reported within finance costs. Non-monetary assets
and liabilities denominated in foreign currency and measured at
l) Other estimates: The share based compensation expense historical cost are translated at the exchange rate prevalent at
is determined based on the Company’s estimate of equity the date of transaction. Translation differences on non-monetary
instruments that will eventually vest. Fair valuation of financial assets measured at fair value at the reporting date,
derivative hedging instruments designated as cash flow such as equities classified as financial instruments measured
hedges involves significant estimates relating to the at fair value through other comprehensive income are included
occurrence of forecasted transaction. in other comprehensive income, net of taxes.
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Non- derivative financial instruments are recognized accumulated in reserves is transferred to statement of
initially at fair value. Subsequent to initial recognition, non- profit and loss.
derivative financial instruments are measured as described
below: Financial instruments measured at fair value through
profit or loss (FVTPL):
A. Cash and cash equivalents Instruments that do not meet the amortized cost or
FVTOCI criteria are measured at FVTPL. Financial
The Company’s cash and cash equivalents consist of assets at FVTPL are measured at fair value at the end of
cash on hand and in banks and demand deposits with each reporting period, with any gains or losses arising
banks, which can be withdrawn at any time, without on re-measurement recognized in statement of profit
prior notice or penalty on the principal. and loss. The gain or loss on disposal is recognized in
statement of profit and loss.
For the purposes of the cash flow statement, cash
and cash equivalents include cash on hand, in banks Interest income is recognized in statement of profit
and demand deposits with banks, net of outstanding and loss for FVTPL debt instruments. Dividend on
bank overdrafts that are repayable on demand and are financial assets at FVTPL is recognized when the
considered part of the Company’s cash management Company’s right to receive dividend is established.
system. In the balance sheet, bank overdrafts are
presented under borrowings within current liabilities. Investments in equity instruments designated to be
classified as FVTOCI:
B. Investments
The Company carries certain equity instruments which
Financial instruments measured at amortized cost: are not held for trading. The Company has elected
the FVTOCI irrevocable option for these instruments.
Debt instruments that meet the following criteria
Movements in fair value of these investments are
are measured at amortized cost (except for debt
recognized in other comprehensive income and the
instruments that are designated at fair value through
gain or loss is not reclassified to statement of profit
Profit or Loss (FVTPL) on initial recognition):
and loss on disposal of these investments. Dividends
• the asset is held within a business model whose from these investments are recognized in statement
objective is to hold assets in order to collect of profit and loss when the Company’s right to receive
contractual cash flows; and dividends is established.
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is subsequently measured at fair value through profit c) Derecognition of financial instruments
or loss.
The Company derecognizes a financial asset when the
b) Derivative financial instruments contractual rights to the cash flows from the financial
asset expire or it transfers the financial asset and the
The Company is exposed to foreign currency fluctuations
transfer qualifies for derecognition under Ind AS 109. If the
on foreign currency assets, liabilities, net investment in
Company retains substantially all the risks and rewards of
foreign operations and forecasted cash flows denominated
a transferred financial asset, the Company continues to
in foreign currency.
recognize the financial asset and recognizes a borrowing
The Company limits the effect of foreign exchange rate for the proceeds received. A financial liability (or a part of
fluctuations by following established risk management a financial liability) is derecognized from the Company’s
policies including the use of derivatives. The Company balance sheet when the obligation specified in the contract
enters into derivative financial instruments where the is discharged or cancelled or expires.
counterparty is primarily a bank.
(iv) Equity
Derivatives are recognized and measured at fair value.
a) Share capital and securities premium
Attributable transaction costs are recognized in statement
of profit and loss as cost. The authorized share capital of the Company as at March
31, 2020 is ` 25,274 divided into 12,504,500,000 equity
Subsequent to initial recognition, derivative financial shares of ` 2 each, 25,000,000 preference shares of ` 10
instruments are accounted as described below: each and 150,000, 10% optionally convertible cumulative
preference shares of ` 100 each. Par value of the equity
A. Cash flow hedges
shares is recorded as share capital and the amount received
Changes in the fair value of the derivative hedging in excess of par value is classified as securities premium.
instrument designated as a cash flow hedge are
recognized in other comprehensive income and held in Every holder of the equity shares, as reflected in the records
cash flow hedging reserve, net of taxes, a component of the Company as of the date of the shareholder meeting
of equity, to the extent that the hedge is effective. To shall have one vote in respect of each share held for all
the extent that the hedge is ineffective, changes in matters submitted to vote in the shareholder meeting.
fair value are recognized in the statement of profit
and loss and reported within foreign exchange gains/ b) Capital Reserve
(losses), net, within results from operating activities. Capital reserve amounting to ` 1,139 (March 31, 2019:
If the hedging instrument no longer meets the criteria ` 1,139) is not freely available for distribution.
for hedge accounting, then hedge accounting is
discontinued prospectively. If the hedging instrument c) Capital Redemption Reserve
expires or is sold, terminated or exercised, the Capital redemption reserve amounting to ` 660 (March 31,
cumulative gain or loss on the hedging instrument 2019: ` 14) is not freely available for distribution.
recognized in cash flow hedging reserve till the period
the hedge was effective remains in cash flow hedging d) Retained earnings
reserve until the forecasted transaction occurs. The
Retained earnings comprises of the Company’s
cumulative gain or loss previously recognized in
undistributed earnings after taxes.
the cash flow hedging reserve is transferred to the
statement of profit and loss upon the occurrence of e) Common Control Transactions Capital Reserve
the related forecasted transaction. If the forecasted
The Common Control Transactions Capital Reserve is on
transaction is no longer expected to occur, such
account of merger as explained in footnotes to Note 34. This
cumulative balance is immediately recognized in the
reserve amounting to ` 2,473 (March 31, 2019: ` 2,473) is
statement of profit and loss.
not freely available for distribution.
B. Others
f) Share options outstanding account
Changes in fair value of foreign currency derivative
The share options outstanding account is used to record the
instruments not designated as cash flow hedges are
recognized in the statement of profit and loss and value of equity-settled share based payment transactions
reported within foreign exchange gains/(losses), net, with employees. The amounts recorded in share options
within results from operating activities. outstanding account are transferred to securities premium
reserve upon exercise of stock options and restricted stock
Changes in fair value and gains/(losses), net, on unit options by employees.
settlement of foreign currency derivative instruments
relating to borrowings, which have not been designated g) Special Economic Zone Re-Investment reserve
as hedges are recorded in finance costs. The Special Economic Zone Re-Investment Reserve has
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been created out of profit of eligible SEZ units as per Capital work-in-progress are measured at cost less
provisions of section 10AA (1)(ii) of the Income–tax Act, accumulated impairment losses, if any.
1961 for acquiring new plant and machinery. The reserve
b) Depreciation
should be utilized by the Company for acquiring plant
and machinery as per terms of section 10AA(2) of the The Company depreciates property, plant and equipment
Income-tax Act, 1961. This reserve is not freely available for over the estimated useful life on a straight-line basis
distribution. from the date the assets are available for use. Leasehold
improvements are amortized over the shorter of estimated
h) Other reserves useful life of the asset or the related lease term. Term
Changes in the fair value of financial instruments measured licenses are amortized over their respective contract term.
at fair value through other comprehensive income and Freehold land is not depreciated. The estimated useful life
actuarial gains and losses on defined benefit plans are of assets is reviewed and where appropriate are adjusted,
recognized in other comprehensive income, net of taxes, annually. The estimated useful lives of assets are as follows:
and presented within equity as other reserves. Category Useful life
Changes in fair value of derivative hedging instruments Plant and machinery 5 to 21 years
designated and effective as a cash flow hedge are Computer equipment and
2 to 7 years
recognized in other comprehensive income, net of taxes, software
and presented within equity as cash flow hedging reserve. Furniture, fixtures and equipment 3 to 10 years
Vehicles 4 to 5 years
j) Foreign currency translation reserve (FCTR)
The exchange differences arising from the translation of When parts of an item of property, plant and equipment
financial statements of foreign operations with functional have different useful lives, they are accounted for as
currency other than Indian rupees is recognized in other separate items (major components) of property, plant and
comprehensive income, net of taxes and is presented equipment. Subsequent expenditure relating to property,
within equity in the FCTR. plant and equipment is capitalized only when it is probable
that future economic benefits associated with these
k) Dividend will flow to the Company and the cost of the item can be
A final dividend, including tax thereon, on equity shares measured reliably.
is recorded as a liability on the date of approval by the
shareholders. An interim dividend, including tax thereon, Deposits and advances paid towards the acquisition of
is recorded as a liability on the date of declaration by the property, plant and equipment outstanding as at each
Board of directors. reporting date and the cost of property, plant and equipment
not available for use before such date are disclosed under
l) Buyback of equity shares capital work- in-progress.
The buyback of equity shares and related transaction costs (vi) Business combination, Goodwill and Intangible assets
are recorded as a reduction of free reserves. Further, capital
redemption reserve is created as an apportionment from a) Business combination
retained earnings. Business combinations are accounted for using the
purchase (acquisition) method. The cost of an acquisition
m) Bonus Issue is measured as the fair value of the assets transferred,
liabilities incurred or assumed and equity instruments
For the purpose of bonus issue, the amount is transferred
issued at the date of exchange by the Company. Identifiable
from capital redemption reserves, securities premium and
assets acquired and liabilities and contingent liabilities
retained earnings to the share capital.
assumed in a business combination are measured initially
at fair value at the date of acquisition. Transaction costs
(v) Property, plant and equipment
incurred in connection with a business acquisition are
a) Recognition and measurement expensed as incurred.
Property, plant and equipment are measured at cost less The cost of an acquisition also includes the fair value of
accumulated depreciation and impairment losses, if any. any contingent consideration measured as at the date of
Cost includes expenditures directly attributable to the acquisition. Any subsequent changes to the fair value of
acquisition of the asset. General and specific borrowing contingent consideration classified as liabilities, other
costs directly attributable to the construction of a qualifying than measurement period adjustments, are recognized in
asset are capitalized as part of the cost. the statement of profit and loss.
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Common Control business combinations (vii) Leases
The Company accounts for business combinations involving The Company evaluates each contract or arrangement, whether
entities or businesses under common control using the it qualifies as lease as defined under Ind AS 116.
pooling of interests method. The assets and liabilities of the
combining entities are reflected at their carrying amounts. The Company as a lessee
The identity of the reserves shall be preserved and shall The Company enters into an arrangement for lease of land,
appear in the financial statements of the transferee in buildings, plant and machinery including computer equipment
the same form in which they appeared in the financial and vehicles. Such arrangements are generally for a fixed period
statements of the transferor. The difference, if any, between but may have extension or termination options. The Company
the amount recorded as share capital issued plus any assesses, whether the contract is, or contains, a lease, at its
additional consideration in the form of cash or other assets inception. A contract is, or contains, a lease if the contract
and the amount of share capital of the transferor shall be conveys the right to –
transferred to capital reserve and should be presented
a) control the use of an identified asset,
separately as Common Control Transactions Capital
reserve. b) obtain substantially all the economic benefits from use of
the identified asset, and
b) Goodwill c) direct the use of the identified asset
The excess of the cost of an acquisition over the Company’s The Company determines the lease term as the non-cancellable
share in the fair value of the acquiree’s identifiable assets period of a lease, together with periods covered by an option to
and liabilities is recognized as goodwill. If the excess is extend the lease, where the Company is reasonably certain to
negative, a bargain purchase gain is recognized in equity exercise that option.
as capital reserve. Goodwill is measured at cost less
accumulated impairment (if any). The Company at the commencement of the lease contract
recognizes a Right-of-Use (RoU) asset at cost and corresponding
Goodwill associated with the disposal of an operation that lease liability, except for leases with term of less than twelve
is part of cash-generating unit is measured on the basis months (short term leases) and low-value assets. For these
of the relative values of the operation disposed of and short term and low value leases, the Company recognizes the
the portion of the cash-generating unit retained, unless lease payments as an operating expense on a straight-line basis
the entity can demonstrate that some other method over the lease term.
better reflects the goodwill associated with the operation
disposed of. The cost of the right-of-use asset comprises the amount
of the initial measurement of the lease liability, any lease
c) Intangible assets payments made at or before the inception date of the lease,
plus any initial direct costs, less any lease incentives received.
Intangible assets acquired separately are measured at cost
Subsequently, the right-of-use assets are measured at cost less
of acquisition. Intangible assets acquired in a business
any accumulated depreciation and accumulated impairment
combination are measured at fair value as at the date of
losses, if any. The right-of-use assets are depreciated using the
acquisition. Following initial recognition, intangible assets
straight-line method from the commencement date over the
are carried at cost less accumulated amortization and shorter of lease term or useful life of right-of-use asset. The
impairment losses, if any. estimated useful life of right-of-use assets are determined on
the same basis as those of property, plant and equipment.
The amortization of an intangible asset with a finite useful
life reflects the manner in which the economic benefit is The Company applies Ind AS 36 to determine whether an RoU
expected to be generated. asset is impaired and accounts for any identified impairment
loss as described in the impairment of non-financial assets
The estimated useful life of amortisable intangibles are
below.
reviewed and where appropriate are adjusted, annually.
The estimated useful lives of the amortisable intangible For lease liabilities at the commencement of the lease, the
assets for the current and comparative periods are as Company measures the lease liability at the present value of
follows: the lease payments that are not paid at that date. The lease
payments are discounted using the interest rate implicit in the
Category Useful life lease, if that rate can be readily determined, if that rate is not
Customer related intangibles 5 to 10 years readily determined, the lease payments are discounted using
the incremental borrowing rate that the Company would have to
Marketing related intangibles 3 to 7 years
pay to borrow funds, including the consideration of factors such
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as the nature of the asset and location, collateral, market terms twelve months expected credit loss unless there has been a
and conditions, as applicable in a similar economic environment. significant increase in credit risk from initial recognition, in
which case those are measured at lifetime expected credit
After the commencement date, the amount of lease liabilities is loss.
increased to reflect the accretion of interest and reduced for the
lease payments made. B) Impairment of Investment in subsidiaries
The Company assesses investments in subsidiaries for
The Company recognizes the amount of the re-measurement of impairment whenever events or changes in circumstances
lease liability as an adjustment to the right-of-use assets. Where indicate that the carrying amount of the investment
the carrying amount of the right-of-use asset is reduced to zero may not be recoverable. If any such indication exists,
and there is a further reduction in the measurement of the lease the Company estimates the recoverable amount of the
liability, the Company recognizes any remaining amount of the investment in subsidiary. The recoverable amount of
re-measurement in statement of profit and loss. such investment is the higher of its fair value less cost
of disposal (FVLCD) and its value-in-use (VIU). The VIU of
Lease liability payments are classified as cash used in financing
the investment is calculated using projected future cash
activities in the statement of cash flows.
flows. If the recoverable amount of the investment is less
The Company as a lessor than its carrying amount, the carrying amount is reduced
to its recoverable amount. The reduction is treated as an
Leases under which the Company is a lessor are classified as
impairment loss and is recognized in the statement of
finance or operating leases. Lease contracts where all the risks
profit and loss.
and rewards are substantially transferred to the lessee, the
lease contracts are classified as finance leases. All other leases C) Non - financial assets
are classified as operating leases. The Company assesses long-lived assets such as property,
plant and equipment, right-of-use assets and acquired
For leases under which the Company is an intermediate lessor,
intangible assets for impairment whenever events or
the Company accounts for the head-lease and the sub-lease
changes in circumstances indicate that the carrying amount
as two separate contracts. The sub-lease is further classified
of an asset or group of assets may not be recoverable. If
either as a finance lease or an operating lease by reference to
any such indication exists, the Company estimates the
the RoU asset arising from the head-lease.
recoverable amount of the asset or group of assets.
(viii) Inventories Goodwill is tested for impairment at least annually at
Inventories are valued at lower of cost and net realisable the same time and when events occur or changes in
value, including necessary provision for obsolescence. Cost is circumstances indicate that the recoverable amount of
determined using the weighted average method. the cash generating unit is less than its carrying value. The
goodwill impairment test is performed at the level of cash-
(ix) Impairment generating unit or groups of cash-generating units which
represent the lowest level at which goodwill is monitored
A) Financial assets for internal management purposes.
The Company applies the expected credit loss model for
The recoverable amount of an asset or cash generating unit
recognizing impairment loss on financial assets measured
is the higher of its fair value less cost of disposal (FVLCD)
at amortized cost, debt instruments classified as FVTOCI,
and its value-in-use (VIU). The VIU of long-lived assets
trade receivables, unbilled receivables, contract assets,
is calculated using projected future cash flows. FVLCD
finance lease receivables and other financial assets.
of a cash generating unit is computed using turnover
Expected credit loss is the difference between the
and earnings multiples. If the recoverable amount of the
contractual cash flows and the cash flows that the entity
asset or the recoverable amount of the cash generating
expects to receive discounted using effective interest rate.
unit to which the asset belongs is less than its carrying
Loss allowances for trade receivables, unbilled receivables, amount, the carrying amount is reduced to its recoverable
contract assets and finance lease receivables are amount. The reduction is treated as an impairment loss
measured at an amount equal to lifetime expected credit and is recognized in the statement of profit and loss. If at
losses. Lifetime expected credit losses are the expected the reporting date, there is an indication that a previously
credit losses that result from all possible default events assessed impairment loss no longer exists, the recoverable
over the expected life of a financial instrument. Lifetime amount is reassessed and the impairment losses previously
expected credit loss is computed based on a provision recognized are reversed such that the asset is recognized
matrix which takes in to the account risk profiling of at its recoverable amount but not exceeding written down
customers and historical credit loss experience adjusted value which would have been reported if the impairment
for forward looking information. For other financial assets, losses had not been recognized initially. An impairment in
expected credit loss is measured at the amount equal to respect of goodwill is not reversed.
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(x) Employee benefits 1972, applicable for Indian companies, the Company
provides for a lump sum payment to eligible employees,
a) Post-employment and pension plans
at retirement or termination of employment based on
The Company participates in various employee benefit the last drawn salary and years of employment with
plans. Pensions and other post-employment benefits are the Company. The gratuity fund is managed by the
classified as either defined contribution plans or defined third-party fund managers.
benefit plans. Under a defined contribution plan, the
Company’s only obligation is to pay a fixed amount with The Company also maintains pension and similar
no obligation to pay further contributions if the fund does plans for employees outside India, based on the
not hold sufficient assets to pay all employee benefits. The country specific regulations. These plans are partially
related actuarial and investment risks are borne by the funded, and the funds are managed by third party fund
employee. The expenditure for defined contribution plans managers. The plans provide for monthly payout after
is recognized as an expense during the period when the retirement as per salary drawn and service period or
employee provides service. Under a defined benefit plan, for a lumpsum payment as set out in rules of each
it is the Company’s obligation to provide agreed benefits to fund.
the employees. The related actuarial and investment risks
are borne by the Company. The present value of the defined The Company’s obligation in respect of above plans,
benefit obligations is calculated by an independent actuary which are defined benefit plans, are provided for based
using the projected unit credit method. on actuarial valuation using the projected unit credit
method. The Company recognizes actuarial gains and
Re-measurement comprising actuarial gains or losses
losses in other comprehensive income, net of taxes.
and the return on plan assets (excluding interest) are
immediately recognized in other comprehensive income, b) Termination benefits
net of taxes and permanently excluded from profit or
Termination benefits are expensed when the Company can
loss. Instead net interest recognized in profit or loss is
no longer withdraw the offer of those benefits.
calculated by applying the discount rate used to measure
the defined benefit obligation to the net defined benefit c) Short-term benefits
liability or asset. The actual return on the plan assets above
or below the discount rate is recognized as part of re- Short-term employee benefit obligations are measured on
measurement of net defined liability or asset through other an undiscounted basis and are recorded as expense as the
comprehensive income, net of taxes. related service is provided. A liability is recognized for the
amount expected to be paid under short-term cash bonus
The Company has the following employee benefit plans: or profit-sharing plans, if the Company has a present legal
or constructive obligation to pay this amount as a result of
A. Provident fund past service provided by the employee and the obligation
Employees receive benefits from a provident fund, can be estimated reliably.
which is a defined benefit plan. The employer and
employees each make periodic contributions to d) Compensated absences
the plan. A portion of the contribution is made to The employees of the Company are entitled to compensated
the approved provident fund trust managed by the absences. The employees can carry forward a portion of
Company while the remainder of the contribution the unutilized accumulating compensated absences and
is made to the government administered pension utilize it in future periods or receive cash at retirement
fund. The contributions to the trust managed by the or termination of employment. The Company records an
Company is accounted for as a defined benefit plan obligation for compensated absences in the period in
as the Company is liable for any shortfall in the fund which the employee renders the services that increases
assets based on the government specified minimum this entitlement. The Company measures the expected
rates of return. cost of compensated absences as the additional amount
that the Company expects to pay as a result of the unused
B. Superannuation entitlement that has accumulated at the end of the
Superannuation plan, a defined contribution scheme reporting period. The Company recognizes accumulated
is administered by third party fund managers. The compensated absences based on actuarial valuation
Company makes annual contributions based on a using the projected unit credit method. Non-accumulating
specified percentage of each eligible employee’s compensated absences are recognized in the period in
salary. which the absences occur.
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form of equity settled instruments or cash settled instruments, “Revenue from Contracts with Customers” using the cumulative
for rendering services over a defined vesting period and for catch-up transition method, applied to contracts that were not
Company’s performance-based stock options over the defined completed as of April 1, 2018. The adoption of the new standard
period. Equity instruments granted are measured by reference has resulted in a reduction of ` 1,605 in opening retained
to the fair value of the instrument at the date of grant. In cases, earnings, primarily relating to certain contract costs because
where equity instruments are granted at a nominal exercise these do not meet the criteria for recognition as costs to fulfil
price, the intrinsic value on the date of grant approximates the a contract.
fair value. The expense is recognized in the statement of profit
and loss with a corresponding increase to the share options Revenues from customer contracts are considered for
outstanding account, a component of equity. recognition and measurement when the contract has been
approved by the parties to the contract, the parties to contract
The equity instruments or cash settled instruments generally are committed to perform their respective obligations under
vest in a graded manner over the vesting period. The fair value the contract, and the contract is legally enforceable. Revenue
determined at the grant date is expensed over the vesting is recognized upon transfer of control of promised products
period of the respective tranches of such grants (accelerated or services to customers in an amount that reflects the
amortization). The stock compensation expense is determined consideration the Company expects to receive in exchange for
based on the Company’s estimate of equity instruments or cash those products or services. To recognize revenues, the Company
settled instruments that will eventually vest. applies the following five step approach: (1) identify the contract
with a customer, (2) identify the performance obligations in the
Cash Settled instruments granted are re-measured by reference contract, (3) determine the transaction price, (4) allocate the
to the fair value at the end of each reporting period and at the transaction price to the performance obligations in the contract,
time of vesting. The expense is recognized in the statement of and (5) recognize revenues when a performance obligation
profit and loss with a corresponding increase to the financial is satisfied. When there is uncertainty as to collectability,
liability. revenue recognition is postponed until such uncertainty is
resolved.
(xii) Provisions
Provisions are recognized when the Company has a present At contract inception, the Company assesses its promise to
obligation (legal or constructive) as a result of a past event, it is transfer products or services to a customer to identify separate
probable that an outflow of economic benefits will be required performance obligations. The Company applies judgement
to settle the obligation and a reliable estimate can be made of to determine whether each product or service promised to a
the amount of the obligation. customer is capable of being distinct, and are distinct in the
context of the contract, if not, the promised products or services
The amount recognized as a provision is the best estimate of the
are combined and accounted as a single performance obligation.
consideration required to settle the present obligation at the
The Company allocates the arrangement consideration to
end of the reporting period, taking into account the risks and
separately identifiable performance obligations based on their
uncertainties surrounding the obligation.
relative stand-alone selling price or residual method. Stand-
When some or all of the economic benefits required to settle a alone selling prices are determined based on sale prices for
provision are expected to be recovered from a third party, the the components when it is regularly sold separately, in cases
receivable is recognized as an asset, if it is virtually certain where the Company is unable to determine the stand-alone
that reimbursement will be received and the amount of the selling price the Company uses third-party prices for similar
receivable can be measured reliably. deliverables or the Company uses expected cost-plus margin
approach in estimating the stand-alone selling price.
Provisions for onerous contracts are recognized when the
expected benefits to be derived by the Company from a contract For performance obligations where control is transferred over
are lower than the unavoidable costs of meeting the future time, revenues are recognized by measuring progress towards
obligations under the contract. Provisions for onerous contracts completion of the performance obligation. The selection of
are measured at the present value of lower of the expected the method to measure progress towards completion requires
net cost of fulfilling the contract and the expected cost of judgment and is based on the nature of the promised products
terminating the contract. or services to be provided.
(xiii) Revenue The method for recognizing revenues and costs depends on the
The Company derives revenue primarily from software nature of the services rendered:
development, maintenance of software/hardware and related
services, business process services, sale of IT and other A. Time and materials contracts
products.
Revenues and costs relating to time and materials contracts
Effective April 1, 2018, the Company adopted Ind AS 115 are recognized as the related services are rendered.
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B. Fixed-price contracts is not consistent with value delivered, revenues are
recognized as the service is performed using the
i) Fixed-price development contracts
percentage of completion method.
Revenues from fixed-price contracts, including
software development, and integration contracts, In certain projects, a fixed quantum of service or
where the performance obligations are satisfied output units is agreed at a fixed price for a fixed term.
over time, are recognized using the “percentage-of- In such contracts, revenue is recognized with respect
completion” method. The performance obligations to the actual output achieved till date as a percentage
are satisfied as and when the services are rendered of total contractual output. Any residual service
since the customer generally obtains control of the unutilized by the customer is recognized as revenue on
work as it progresses. Percentage of completion is completion of the term.
determined based on project costs incurred to date
as a percentage of total estimated project costs iii) Element or Volume based contracts
required to complete the project. The cost expended Revenues and costs are recognized as the related
(or input) method has been used to measure progress services are rendered.
towards completion as there is a direct relationship
between input and productivity. If the Company is C. Products
not able to reasonably measure the progress of
Revenue on product sales are recognized when the
completion, revenue is recognized only to the extent
customer obtains control of the specified product.
of costs incurred for which recoverability is probable.
When total cost estimates exceed revenues in an D. Others
arrangement, the estimated losses are recognized in
the statement of profit and loss in the period in which − Any change in scope or price is considered as a
such losses become probable based on the current contract modification. The Company accounts for
contract estimates as an onerous contract provision. modifications to existing contracts by assessing
whether the services added are distinct and whether
A contract asset is a right to consideration that is the pricing is at the stand-alone selling price. Services
conditional upon factors other than the passage of added that are not distinct are accounted for on
time. Contract assets primarily relate to unbilled a cumulative catch up basis, while those that are
amounts on fixed-price development contracts and distinct are accounted for prospectively, either as a
are classified as non-financial asset as the contractual separate contract if the additional services are priced
right to consideration is dependent on completion of at the stand-alone selling price, or as a termination of
contractual milestones. the existing contract and creation of a new contract if
not priced at the stand-alone selling price.
A contract liability is an entity’s obligation to transfer
goods or services to a customer for which the entity − The Company accounts for variable considerations
has received consideration (or the amount is due) from like, volume discounts, rebates, pricing incentives to
the customer. customers and penalties as reduction of revenue on
a systematic and rational basis over the period of the
Unbilled receivables on other than fixed price contract. The Company estimates an amount of such
development contracts are classified as a financial variable consideration using expected value method
asset where the right to consideration is unconditional or the single most likely amount in a range of possible
upon passage of time. consideration depending on which method better
predicts the amount of consideration to which the
ii) Maintenance contracts
Company may be entitled and when it is probable that
Revenues related to fixed-price maintenance a significant reversal of cumulative revenue recognized
contracts are recognized on a straight-line basis when will not occur when the uncertainty associated with
services are performed through an indefinite number the variable consideration is resolved.
of repetitive acts over a specified period or ratably
using percentage of completion method when the − Revenues are shown net of allowances/ returns,
pattern of benefits from the services rendered to the sales tax, value added tax, goods and services tax and
customers and the cost to fulfil the contract is not even applicable discounts and allowances.
through the period of contract because the services
− The Company accrues the estimated cost of
are generally discrete in nature and not repetitive.
warranties at the time when the revenue is recognized.
Revenue for contracts in which the invoicing is The accruals are based on the Company’s historical
representative of the value being delivered, is experience of material usage and service delivery
recognized based on our right to invoice. If our invoicing costs.
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− Incremental costs that relate directly to a contract and (xv) Other income
incurred in securing a contract with a customer are Other income comprises interest income on deposits, dividend
recognized as an asset when the Company expects to income and gains / (losses) on disposal of investments. Interest
recover these costs and amortized over the contract income is recognized using the effective interest method.
term. Dividend income is recognized when the right to receive payment
is established.
− The Company recognizes contract fulfilment cost as
an asset if those costs specifically relate to a contract (xvi) Income tax
or to an anticipated contract, the costs generate or
Income tax comprises current and deferred tax. Income tax
enhance resources that will be used in satisfying
expense is recognized in the statement of profit and loss except
performance obligations in future; and the costs are
to the extent it relates to a business combination, or items
expected to be recovered. The asset so recognized is
directly recognized in equity or in other comprehensive income.
amortized on a systematic basis consistent with the
transfer of goods or services to customer to which the a) Current income tax
asset relates.
Current income tax for the current and prior periods are
− The Company assesses the timing of the transfer of measured at the amount expected to be recovered from
goods or services to the customer as compared to the or paid to the taxation authorities based on the taxable
timing of payments to determine whether a significant income for the period. The tax rates and tax laws used
financing component exists. As a practical expedient, to compute the current tax amounts are those that are
the Company does not assess the existence of a enacted or substantively enacted as at the reporting date
significant financing component when the difference and applicable for the period. While determining the tax
between payment and transfer of deliverables is a year provisions, the Company assesses whether each uncertain
or less. If the difference in timing arises for reasons tax position is to be considered separately or together
other than the provision of finance to either the with one or more uncertain tax positions depending the
customer or us, no financing component is deemed to nature and circumstances of each uncertain tax position.
exist. The Company offsets current tax assets and current tax
liabilities, where it has a legally enforceable right to set
− The Company may enter into arrangements with third off the recognized amounts and where it intends either to
party suppliers to resell products or services. In such settle on a net basis, or to realize the asset and liability
cases, the Company evaluates whether the Company simultaneously.
is the principal (i.e. report revenues on a gross basis)
b) Deferred income tax
or agent (i.e. report revenues on a net basis). In doing
so, the Company first evaluates whether the Company Deferred income tax is recognized using the balance sheet
controls the good or service before it is transferred to approach. Deferred income tax assets and liabilities are
the customer. If Company controls the good or service recognized for deductible and taxable temporary differences
before it is transferred to the customer, Company is the arising between the tax base of assets and liabilities and
principal; if not, the Company is the agent. their carrying amount in financial statements, except when
the deferred income tax arises from the initial recognition
− Estimates of transaction price and total costs or of goodwill or an asset or liability in a transaction that is not
efforts are continuously monitored over the term of the a business combination and affects neither accounting nor
contract and are recognized in net profit in the period taxable profits or loss at the time of the transaction.
when these estimates change or when the estimates
are revised. Revenues and the estimated total costs Deferred income tax assets are recognized to the extent it is
or efforts are subject to revision as the contract probable that taxable profit will be available against which
progresses. the deductible temporary differences and the carry forward
of unused tax credits and unused tax losses can be utilized.
(xiv) Finance costs
Deferred income tax liabilities are recognized for all
Finance costs comprise interest cost on borrowings and lease
taxable temporary differences except in respect of taxable
liabilities, gain or losses arising on re-measurement of financial temporary differences that is expected to reverse within
assets at FVTPL, gains/ (losses) on translation or settlement the tax holiday period, taxable temporary differences
of foreign currency borrowings and changes in fair value and associated with investments in subsidiaries, associates
gains/ (losses) on settlement of related derivative instruments. and foreign branches where the timing of the reversal
Borrowing costs that are not directly attributable to a qualifying of the temporary difference can be controlled and it is
asset are recognized in the statement of profit and loss using probable that the temporary difference will not reverse in
the effective interest method. the foreseeable future.
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The carrying amount of deferred income tax assets is acquired exclusively with a view to resale. Classification as a
reviewed at each reporting date and reduced to the extent discontinued operation occurs upon the earlier of disposal or
that it is no longer probable that sufficient taxable profit when the operation meets the criteria to be classified as held
will be available to allow all or part of the deferred income for sale.
tax asset to be utilized.
(xxi) Non-current assets and disposal groups held for sale
Deferred income tax assets and liabilities are measured at Assets and liabilities of disposal groups that are available for
the tax rates that are expected to apply in the period when
immediate sale and where the sale is highly probable of being
the asset is realized or the liability is settled, based on tax
completed within one year from the date of classification are
rates (and tax laws) that have been enacted or substantively
considered and classified as assets held for sale and liabilities
enacted at the reporting date.
associated with assets held for sale. Noncurrent assets and
disposal groups held for sale are measured at the lower of
The Company offsets deferred income tax assets and
carrying amount and fair value less costs to sell.
liabilities, where it has a legally enforceable right to offset
current tax assets against current tax liabilities, and they
(xxii) Disposal of assets
relate to taxes levied by the same taxation authority on
either the same taxable entity, or on different taxable The gain or loss arising on disposal or retirement of assets is
entities where there is an intention to settle the current tax recognized in the statement of profit and loss.
liabilities and assets on a net basis or their tax assets and
liabilities will be realized simultaneously. New Accounting standards adopted by the Company:
Basic earnings per share is computed using the weighted On April 1, 2019, the Company has adopted Ind AS 116, Leases,
average number of equity shares outstanding during the period which, applied to all lease contracts outstanding as at April 1,
adjusted for treasury shares held. Diluted earnings per share 2019, using modified retrospective method by recording the
is computed using the weighted-average number of equity and cumulative effect of initial application as an adjustment to
dilutive equivalent shares outstanding during the period, using opening retained earnings. The Company has made use of the
the treasury stock method for options, except where the results following practical expedients available in its transition to Ind
would be anti-dilutive. AS 116 -
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Lease payments during the year are disclosed under financing The Ministry of Corporate Affairs issued amendments to Ind AS
activities in the statement of cash flows. 19, ‘Employee Benefits’, in connection with accounting for plan
amendments, curtailments and settlements requiring an entity
The comparatives as at and for the year ended March 31, 2019 to determine the current service costs and the net interest for
have not been retrospectively adjusted. the period after the remeasurement using the assumptions
used for the remeasurement; and determine the net interest
The adoption of Ind AS 116 did not have any material impact on
for the remaining period based on the remeasured net defined
the Company’s statement of profit and loss and earnings per
benefit liability or asset. The adoption of amendment to Ind AS
share.
19 did not have any material impact on the standalone financial
The difference between the lease obligation disclosed as of statements of the Company.
March 31, 2019 under Ind AS 17 and the value of the lease New Accounting Standards not yet adopted by the Company
liabilities as of April 1, 2019 is primarily on account of practical
Ministry of Corporate Affairs (“MCA”) notifies new standard
expedients exercised for low value assets and short term leases,
or amendments to the existing standards. There is no
as at adoption of the standard, in measuring lease liability
such notification which would have been applicable from
and discounting the lease liabilities to the present value in
April 1, 2020.
accordance with Ind AS 116.
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Wipro Limited
4. Property, plant and equipment
Plant and Furniture
Office
Land Buildings machinery and Vehicles Total
equipment
* fixtures
Reclassified on adoption of
Ind AS 116 - - (263) - - - (263)
Adjusted balance as at April 1, 2019 ` 3,555 ` 25,237 ` 67,893 ` 9,539 ` 4,583 ` 874 ` 111,681
As at March 31, 2020 ` 3,610 ` 33,620 ` 74,548 ` 11,175 ` 5,477 ` 758 ` 129,188
Adjusted balance as at April 1, 2019 - ` 5,982 ` 55,553 ` 7,354 ` 3,561 ` 632 ` 73,082
Net book value as at March 31, 2020 ` 3,610 ` 26,748 ` 15,493 ` 3,078 ` 1,478 ` 66 ` 50,473
As at March 31, 2019 ` 3,555 ` 25,237 ` 68,156 ` 9,539 ` 4,583 ` 874 ` 111,944
Net book value as at March 31, 2019 ` 3,555 ` 19,255 ` 12,483 ` 2,185 ` 1,022 ` 242 ` 38,742
* Including net carrying value of computer equipment and software amounting to ` 9,959 and ` 8,893 as at March 31, 2020 and 2019,
respectively.
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5. Right-of-Use Assets
Year ended
March 31, 2020 March 31, 2019
Balance at the beginning of the year ` 3,882 ` 3,882
Acquisition through business combination (Refer to Note 7) 689 -
Balance at the end of the year ` 4,571 ` 3,882
The Company is organized by three operating segments: IT Services, IT Products and India State Run Enterprises services. Goodwill as at
March 31, 2020 and 2019 has been allocated to the IT Services operating segment.
As at
March 31, 2020 March 31, 2019
Energy, Natural Resources and Utilities (ENU) ` 3,782 ` 3,782
Banking Financial Services and Insurance (BFSI) 789 100
Total ` 4,571 ` 3,882
For impairment testing, goodwill is allocated to a CGU representing the lowest level within the Company at which goodwill is monitored for
internal management purposes, and which is not higher than the Company’s operating segment. Goodwill is tested for impairment at least
annually in accordance with the Company’s procedure for determining the recoverable value of each CGU.
The recoverable amount of the CGU is determined on the basis of Fair Value Less Cost of Disposal (FVLCD). The FVLCD of the CGU is
determined based on the market capitalization approach, using the turnover and earnings multiples derived from observable market data.
The fair value measurement is categorised as a level 2 fair value based on the inputs in the valuation techniques used.
Based on the above testing, no impairment was identified as at March 31, 2020 and 2019 as the recoverable value of the CGUs exceeded
the carrying value. Further, none of the CGU’s tested for impairment as at March 31, 2020 and 2019 were at risk of impairment. An analysis
of the calculation’s sensitivity to a change in the key parameters (turnover and earnings multiples), did not identify any probable scenarios
where the CGU’s recoverable amount would fall below its carrying amount.
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Movement in intangible assets is given below:
Intangible assets
Customer related Marketing related * Total
Gross carrying value:
As at April 1, 2019 ` 2,913 ` 485 ` 3,398
Additions through business combination 2,294 32 2,326
Disposals - - -
As at March 31, 2020 ` 5,207 ` 517 ` 5,724
Accumulated amortization/ impairment:
As at April 1, 2019 ` 1,527 ` 485 ` 2,012
Amortization 520 2 522
Disposals - - -
As at March 31, 2020 ` 2,047 ` 487 ` 2,534
Net carrying value as at March 31, 2020 ` 3,160 ` 30 ` 3,190
Gross carrying value:
As at April 1, 2018 ` 2,913 ` 78 ` 2,991
Additions - - -
Additions due to merger - 407 407
Disposals - - -
As at March 31, 2019 ` 2,913 ` 485 ` 3,398
Accumulated amortization/ impairment:
As at April 1, 2018 ` 1,151 ` 78 ` 1,229
Amortization 376 - 376
Additions due to merger - 407 407
Disposals - - -
As at March 31, 2019 ` 1,527 ` 485 ` 2,012
Net carrying value as at March 31, 2019 ` 1,386 ` - ` 1,386
* Marketing related intangible assets include Technical Know-how, patents and trademarks.
Additions due to merger during the year ended March 31, 2019 represents value of intangibles taken over as a part of the merger
explained in footnotes to Note 34.
As at March 31, 2020, the estimated remaining amortization period for intangible assets acquired on acquisition are as follows:
7. Business Combination
Summary of material acquisitions during the year ended March 31, 2020 is given below:
On September 30, 2019, the Company has acquired the customer contracts, leased facilities, assets and employees of Vara Infotech Private
Limited, through a Business Transfer Agreement for a cash consideration of ` 3,230. This transaction pertains to our service offerings in
BFSI industry vertical.
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The goodwill of ` 689 comprises value of acquired workforce and expected synergies arising from the business combination. The goodwill
was allocated to IT Services segment and is deductible for income tax purposes in India.
The pro-forma effects of this business combination on the Company’s results were not material.
8. Investments
Non-current Investments
As at
March 31, 2020 March 31, 2019
Financial instruments measured at FVTOCI
Equity instruments -unquoted (Refer to note 8.1) ` 152 ` 249
Investment in Subsidiaries- unquoted (Refer to Note 8.4) 77,198 82,254
` 77,350 ` 82,503
Aggregate amount of unquoted investments 77,350 82,503
Aggregate amount of impairment in value of investments in subsidiaries (7,356) (7,356)
Current Investments
As at
March 31, 2020 March 31, 2019
Financial instruments measured at FVTPL
Investments in liquid and short-term mutual funds -unquoted (Refer to Note 8.5) ` 14,795 ` 13,960
Financial instruments measured at FVTOCI
Commercial paper, Certificate of deposits and bonds -unquoted (Refer to note 8.2) 20,126 43,030
Non-convertible debentures, government securities and commercial papers - quoted
135,461 142,018
(Refer to note 8.3)
Financial instruments at amortized cost
Inter corporate and term deposits -unquoted * 19,253 20,980
` 189,635 ` 219,988
Aggregate amount of quoted investments and aggregate market value thereof 135,461 142,018
Aggregate amount of unquoted investments 54,174 77,970
* These deposits earn a fixed rate of interest.
* Term deposits include deposits in lien with banks primarily on account of term deposits held as margin money deposits against
guarantees amounting to ` 796 (March 31, 2019: ` 463).
Details of investments:
8.1 Details of investments in equity instruments-other than subsidiaries (fully paid-up) – classified as FVTOCI
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Wipro Limited
8.2 Investment in certificate of deposits/ commercial papers and bonds (unquoted) – classified as FVTOCI
As at
Particulars of issuer
March 31, 2020 March 31, 2019
Current
Axis Bank ` 9,139 ` 4,309
National Bank for Agriculture and Rural Development 8,833 1,000
Small Industries Development Bank of India 1,197 4,302
ICICI Bank 957 11,311
Kotak Mahindra Investments Limited - 2,864
Kotak Mahindra Prime Limited - 2,585
Aditya Birla Finance Limited - 1,988
Tata Capital Housing Finance Limited - 1,881
Tata Capital Financial Services Limited - 1,499
Kotak Mahindra Bank - 9,362
HDFC Bank Limited - 992
HDB Financial Services Limited - 937
Total ` 20,126 ` 43,030
8.3 Investment in non-convertible debentures, government securities and commercial papers (quoted) – classified as FVTOCI
As at
Particulars of issuer
March 31, 2020 March 31, 2019
Current
National Highways Authority of India ` 18,802 ` 18,055
Rural Electrification Corporation Limited 14,114 4,929
HDB Financial Services Limited 13,633 13,038
Government Securities 12,978 6,862
Power Finance Corporation Limited 12,248 13,169
Kotak Mahindra Prime Limited 12,090 10,855
Tata Capital Financial Services Limited 12,000 13,708
Small Industries Development Bank of India 8,914 4,912
Kotak Mahindra Investments Limited 8,283 5,238
Housing Development Finance Corporation Limited 5,692 7,151
Indian Railway Finance Corporation Limited 4,857 4,473
National Bank for Agriculture and Rural Development 4,574 13,460
Aditya Birla Finance Limited 1,882 11,596
Axis Bank 1,823 517
NTPC Limited 1,679 417
Tata Capital Housing Finance Limited 1,273 5,765
HDFC Bank Limited 614 462
ANZ Bank 5 3
LIC Housing Finance Limited - 7,408
Total ` 135,461 ` 142,018
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8.4 Details of investment in unquoted equity and preference instruments of subsidiaries (fully paid up)
Note 1 - As per the local laws of Japan, the Shares do not have face value.
Note 2 - As per the local laws of People’s Republic of China, there is no requirement of number of shares and face value thereof. Hence
the investment by the Company is considered as equity contribution.
Note 3 - The impairment is on account of diminution in the value of a step subsidiary of Wipro LLC due to the uncertainties around the
Affordable Care Act.
8.5 Details of Investments in liquid and short-term mutual funds -unquoted – classified as FVTPL
Number of Shares Carrying Value
Particulars As at As at
March 31, 2020 March 31, 2019 March 31, 2020 March 31, 2019
HDFC Arbitrage Fund - Wholesale Plan - Growth 141,089,753 - ` 2,100 ` -
Kotak Equity Arbitrage Fund - Direct Plan - Growth 67,906,978 - 1,974 -
SBI Overnight Fund Direct Plan Growth 496,725 388,332 1,616 1,201
IDFC Arbitrage Fund - Growth - Direct Plan 48,133,290 - 1,241 -
ICICI Prudential Equity Arbitrage Fund - Direct Plan -
45,551,909 - 1,229 -
Growth
UTI Overnight Fund Direct Plan Growth 407,120 462,995 1,113 1,203
UTI Arbitrage Fund-Growth Plan 36,445,590 - 996 -
L&T Cash Fund Direct Plan Growth 460,742 168,996 718 250
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Wipro Limited
Number of Shares Carrying Value
Particulars As at As at
March 31, 2020 March 31, 2019 March 31, 2020 March 31, 2019
Axis Overnight Fund 590,406 389,144 623 390
DSP Overnight Fund Direct Plan Growth 488,697 345,742 522 351
HSBC Overnight Fund 479,479 - 500 -
Invesco India Overnight Fund 495,317 - 500 -
ICICI Prudential Overnight Fund Direct Growth 4,526,064 5,864,741 488 600
HDFC Overnight Fund Direct Plan Growth 145,665 70,899 432 200
ABSL Overnight Fund Direct Plan Growth 231,342 1,771,126 250 1,818
Sundaram Overnight Fund 228,041 - 242 -
Tata Overnight Fund 107,199 250,125 113 250
IDFC Overnight Fund 67,569 594,622 72 602
Kotak Overnight Fund 62,144 691,520 66 700
HDFC Arbitrage Fund - Wholesale Plan - Monthly Dividend-
- 200,321,433 - 2,097
Direct Plan
IDFC Arbitrage Fund – Monthly Dividend- Direct Plan - 88,833,898 - 1,168
ICICI Prudential Equity Arbitrage Fund - Direct Plan -
- 79,919,884 - 1,158
Dividend
Kotak Equity Arbitrage - Direct - Fortnight Dividend - 83,782,796 - 1,972
Religare Ultra Short Term Fund - Institutional Growth - 15 - ^
Reliance Interval Fund - Monthly Series I - IP - Dividend - 15 - ^
Total Investments in liquid and short-term mutual funds
` 14,795 ` 13,960
-unquoted
9. Trade receivables
As at
March 31, 2020 March 31, 2019
Unsecured
Considered good ` 97,032 ` 94,836
Considered doubtful 10,581 11,631
` 107,613 ` 106,467
Less: Allowance for lifetime expected credit loss (10,581) (11,631)
` 97,032 ` 94,836
Included in the balance sheet as follows:
Non-current 4,462 4,373
Current 92,570 90,463
The activity in the allowance for lifetime expected credit loss is given below:
As at
March 31, 2020 March 31, 2019
Balance at the beginning of the year ` 11,631 ` 11,514
Additions during the year, net 857 729
Uncollectable receivables charged against allowance (1,989) (575)
Translation adjustment 82 (37)
Balance at the end of the year ` 10,581 ` 11,631
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As at
March 31, 2020 March 31, 2019
Balances with banks
Current accounts ` 13,233 ` 18,838
Unclaimed dividend 85 93
Demand deposits * 90,970 84,818
Cheques, drafts on hand 152 153
` 104,440 ` 103,902
* 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 statement of cash flows:
As at
March 31, 2020 March 31, 2019
Cash and cash equivalents ` 104,440 ` 103,902
Bank overdrafts - (3)
` 104,440 ` 103,899
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Wipro Limited
Finance lease receivables
Leasing arrangements
Finance lease receivables consist of assets that are leased to customers for contract terms ranging from 1 to 7 years, with lease payments
due in monthly or quarterly installments. Details of finance lease receivables is given below:
12. Inventories
As at
March 31, 2020 March 31, 2019
Finished goods [including goods in transit - `2] (`1 for March 31, 2019) ` 3 ` 3
Stock-in-trade 1,125 2,724
Stores and spares 613 676
` 1,741 ` 3,403
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The Company has only one class of equity shares having a par value of ` 2 per share. Each shareholder of equity shares is entitled to one
vote per share. The Company declares and pays dividend in Indian Rupees. The final dividend proposed by the Board of Directors is subject
to shareholders approval in the ensuing Annual General Meeting.
Following is the summary of per share dividends recognized as distributions to equity shareholders:
In the event of liquidation of the Company, the equity shareholders will be entitled to receive the remaining assets of the Company, after
distribution of all preferential amounts, if any, in proportion to the number of equity shares held by the shareholders.
i. Reconciliation of number of shares
ii. Details of shareholders holding more than 5% of the total equity shares of the Company
As at March 31, 2020 As at March 31, 2019
Name of the Shareholder
No. of Shares % held No. of Shares % held
Mr. Azim Hasham Premji Partner representing Hasham
938,946,043 16.43 989,215,999 16.39
Traders
Mr. Azim Hasham Premji Partner representing Prazim
1,127,392,315 19.73 1,187,751,441 19.68
Traders
Mr. Azim Hasham Premji Partner representing Zash Traders 1,143,118,360 20.01 1,204,319,438 19.96
Azim Premji Trust 757,398,687 13.26 797,948,834 13.22
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iii. Other details of equity shares for a period of five years immediately preceding March 31, 2020
(a) 323,076,923 equity shares were bought back by the Company during the year ended March 31, 2020. Refer to Note 30
(b) 1,508,469,180 bonus shares were issued during the year ended March 31, 2019. Refer to note 30.
(c) 2,433,074,327 bonus shares were issued during the year ended March 31, 2018.
(d) 343,750,000 equity shares and 40,000,000 equity shares were bought back by the company during the year ended
March 31, 2018 and 2017, respectively.
15. Borrowings
As at
March 31, 2020 March 31, 2019
Non-current
Secured
Long term maturities of obligations under finance leases * ` - ` 152
Unsecured
Loans from institutions other than banks ** ` 251 ` 68
Total Non-current ` 251 ` 220
Current
Unsecured
Bank overdrafts ` - ` 3
Loans from institutions other than banks ** - 19
Borrowings from banks 50,019 50,500
Total current borrowings ` 50,019 ` 50,522
Total borrowings ` 50,270 ` 50,742
* Current obligations under financial leases amounting to ` Nil (March 31, 2019: ` 444) is classified under “Other current financial
liabilities”. Refer to note 33.
** Current obligations under Loans from institutions other than banks amounting to ` 189 (March 31, 2019: ` 93) is classified under “Other
current financial liabilities”.
Short-term borrowings
Unsecured borrowings from banks 50,019 LIBOR / T-Bill + Spread 1.39% - 5.30% 50,500
` 50,019 ` 50,522
The principal source of Short-term borrowings from banks as at March 31, 2020 primarily consists of lines of credit of approximately `
17,960 (2019: ` 7,979) and U.S. Dollar (U.S. $) 909 Million (2019: U.S. $ 1,165 Million) from bankers for working capital requirements and
other short-term needs. As at March 31, 2020, the Company has unutilized lines of credit aggregating ` 4,260 (2019: ` 7,957) and U.S.$
429 Million (2019: U.S. $ 435 Million). To utilize these unused lines of credit, the Company requires consent of the lender and compliance
with certain financial covenants. Significant portion of these lines of credit are revolving credit facilities and floating rate foreign currency
loans, renewable on a periodic basis.
The Company has non-fund based revolving credit facilities in INR amounting to ` 30,726 and ` 33,791 as at March 31, 2020 and 2019,
respectively, towards operational requirements that can be used for the issuance of letters of credit and bank guarantees. As at March 31,
2020 and 2019, an amount of ` 17,215 and ` 20,174, respectively, was unutilized out of these non-fund based facilities.
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Long-term borrowings
The terms of the other secured and unsecured loans and borrowings also contain certain restrictive covenants primarily requiring the
Company to maintain certain financial ratios. As at March 31, 2020 and 2019, the Company has met all the covenants under these
arrangements.
Non-Cash Changes
Additions Foreign March 31,
April 1, 2019 Cash flow Ind AS 116
to lease exchange 2020
Adoption
liabilities movements
Borrowings from banks ` 50,500 ` (4,584) ` - ` - ` 4,103 ` 50,019
Bank overdrafts 3 (3) - - - -
Obligations under finance leases* 596 - (596) - - -
Loans from institutions other than
180 260 - - - 440
banks*
Lease Liabilities - (3,255) 8,214 3,772 390 9,121
Total ` 51,279 ` (7,582) ` 7,618 ` 3,772 ` 4,493 ` 59,580
Non-Cash Changes
Assets taken Foreign March 31,
April 1, 2018 Cash flow
on finance exchange 2019
lease movements
Borrowings from banks ` 42,479 ` 6,911 ` - ` 1,110 ` 50,500
Bank overdrafts 3,998 (3,995) - - 3
External commercial borrowings * 9,777 (10,064) - 287 -
Obligations under finance leases * 1,407 (805) 2 (8) 596
Loans from institutions other than banks* 367 (186) - (1) 180
Total ` 58,028 ` (8,139) ` 2 ` 1,388 ` 51,279
* Includes current obligations under borrowings classified under “Other current financial liabilities”
Significant portion of loans, borrowings and bank overdrafts bear floating rates of interest, referenced to LIBOR or other similar country
specific official benchmark interest rates and a spread, determined based on market conditions.
The terms of the other secured and unsecured loans and borrowings also contain certain restrictive covenants primarily requiring the
Company to maintain certain financial ratios. As at March 31, 2020 and 2019, the Company has met all the covenants under these
arrangements.
Obligations under finance leases amounting to ` 596 as at March 31, 2019 were secured by underlying property, plant and equipment.
Interest expense on borrowings was ` 1,721 and ` 1,762 for the year ended March 31, 2020 and 2019, respectively.
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16. Micro, small and medium enterprises
The disclosure pursuant to the Micro, Small and Medium Enterprises Development Act, 2006, [MSMED Act] as at March 31, 2020 and
March 31, 2019 is as under:
As at
Particulars
March 31, 2020 March 31, 2019
(a) Principal amount remaining unpaid ` 131 ` 37
(b) Interest due thereon remaining unpaid - 1
(c) Interest paid by the Company in terms of Section 16 of the MSMED Act, along with the
294 437
amount of the payment made to the supplier beyond the appointed day
(d) Interest due and payable for the period of delay in making payment (which have
been paid but beyond the appointed day during the period) but without adding interest - -
specified under the MSMED Act
(e) Interest accrued and remaining unpaid 3 4
(f) Further interest remaining due and payable even in the succeeding years, until such
date when the interest dues as above are actually paid to the small enterprises or the - 1
purpose of disallowance as a deductible expenditure under section 23.
This information has been determined to the extent such parties have been identified on the basis of information available with the
Company.
18. Provisions
As at
March 31, 2020 March 31, 2019
Non-current:
Provision for employee benefits ` 2,131 ` 1,194
Provision for warranty 2 2
` 2,133 ` 1,196
Current:
Provision for employee benefits ` 10,296 ` 8,300
Provision for warranty 317 274
Others 689 716
` 11,302 ` 9,290
Total ` 13,435 ` 10,486
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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 indirect tax related
contingencies and litigations. The timing of cash outflows in respect of such provision cannot be reasonably determined.
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As at
March 31, 2020 March 31, 2019
Liabilities
Trade payables and other payables
Trade payables ` 45,426 ` 47,655
Other financial liabilities 18,614 24,453
Borrowings** 50,459 51,279
Derivative liabilities 7,369 1,270
` 121,868 ` 124,657
** Includes current obligation under borrowings classified under 'other current financial liabilities'.
Offsetting financial assets and liabilities
The following table contains information on other financial assets and trade payables and other payables subject to offsetting:
As at
March 31, 2020 March 31, 2019
Financial Assets:
Gross amounts of recognized other financial assets ` 132,343 ` 126,612
Gross amounts of recognized financial liabilities set off in the balance sheet (6,124) (6,097)
Net amounts of recognized other financial assets presented in the balance sheet ` 126,219 ` 120,515
Financial liabilities
Gross amounts of recognized trade payables and other payables ` 70,164 ` 78,205
Gross amounts of recognized financial liabilities set off in the balance sheet (6,124) (6,097)
Net amounts of recognized trade payables and other payables presented in the balance
` 64,040 ` 72,108
sheet
For the financial assets and liabilities subject to offsetting or similar arrangements, each agreement between the Company and the
counterparty allows for net settlement of the relevant financial assets and liabilities when both elect to settle on a net basis. In the
absence of such an election, financial assets and liabilities will be settled on a gross basis and hence are not offset.
Fair value
Financial assets and liabilities include cash and cash equivalents, trade receivables, unbilled receivables, finance lease receivables,
employee and other advances, eligible current and non-current assets, borrowings, trade payables, and eligible current liabilities and
non-current liabilities.
The fair value of cash and cash equivalents, trade receivables, unbilled receivables, borrowings, trade payables, other current financial
assets and liabilities approximate their carrying amount largely due to the short-term nature of these instruments. The Company’s long-
term debt has been contracted at market rates of interest. Accordingly, the carrying value of such long-term debt approximates fair value.
Further, finance lease receivables are periodically evaluated based on individual credit worthiness of customers. Based on this evaluation,
the Company records allowance for estimated losses on these receivables. As at March 31, 2020, and 2019 the carrying value of such
receivables, net of allowances approximates the fair value.
Investments in liquid and short-term mutual funds, which are classified as FVTPL are measured using net asset values at the reporting
date multiplied by the quantity held. Fair value of investments in certificate of deposits, commercial papers and bonds classified as FVTOCI
is determined based on the indicative quotes of price and yields prevailing in the market at the reporting date. Fair value of investments in
equity instruments classified as FVTOCI is determined using market and income approaches.
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.
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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).
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:
Liabilities
Derivative instruments:
Cash flow hedges (4,057) - (4,057) - (130) - (130) -
Others (3,312) - (3,312) - (1,140) - (1,140) -
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 derivative financial instruments with various counterparties, 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 at March 31, 2020, 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.
Investment in commercial papers, certificate of deposits and bonds: Fair value of these instruments is derived based on the indicative
quotes of price and yields prevailing in the market as at reporting date.
The following methods and assumptions were used to estimate the fair value of the level 3 financial instruments included in the above
table.
Investment in equity instruments: Fair value of these instruments is determined using market and income approaches.
Details of assets and liabilities considered under Level 3 classification
Particulars Investment in equity instruments
Balance as at April 1, 2018 ` 1,773
Additions 51
Additions on account of merger 352
Disposals (454)
Loss recognized in other comprehensive income (1,473)
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Details of assets and liabilities considered under Level 3 classification
Particulars Investment in equity instruments
Balance as at March 31, 2019 ` 249
Balance as at April 1, 2019 ` 249
Additions -
Disposals (6)
Loss recognized in other comprehensive income (91)
Balance as at March 31, 2020 ` 152
As at March 31, 2020 and 2019, a one percentage point change in the unobservable inputs used in fair valuation of Level 3 assets does not
have a significant impact on its value.
The Company is exposed to foreign currency fluctuations on foreign currency assets / liabilities and 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 and 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 counterparty as non-material.
The following table presents the aggregate contracted principal amounts of the Company’s derivative contracts outstanding:
(in millions)
As at
March 31, 2020 March 31, 2019
Notional Fair Value Notional Fair Value
Designated derivative instruments
Sell: Forward contracts USD 1,011 ` (2,902) USD 333 ` 1,410
£ 52 ` 240 £ - ` -
€ 121 ` 231 € - ` -
AUD 144 ` 741 AUD 97 ` 15
Range forward option contracts USD 474 ` (1,057) USD 1,067 ` 1,149
AUD - ` - AUD 56 ` 39
£ 98 ` (13) £ 191 ` 68
€ 39 ` 85 € 153 ` 349
Non-designated derivative instruments
Sell: Forward contracts USD 1,138 ` (3,177) USD 1,065 ` 1,377
£ 81 ` 112 £ 1 ` (1)
€ 59 ` 34 € 32 ` 55
AUD 56 ` 115 AUD 82 ` 28
SGD 7 ` 8 SGD 11 ` 1
ZAR 17 ` 1 ZAR 56 ` 14
CAD 51 ` 153 CAD 56 ` 40
SAR 60 ` (1) SAR 123 ` (1)
AED - ` - AED 9 ` ^
PLN 34 ` 13 PLN 38 ` 15
CHF 7 ` 4 CHF 10 ` ^
QAR 19 ` (8) QAR 3 ` (1)
TRY 30 ` 31 TRY 28 ` 12
NOK 19 ` 16 NOK 29 ` 4
OMR 2 ` 1 OMR 1 ` (1)
SEK 13 ` 4 SEK 35 ` 5
MYR 20 ` 1 MYR - ` -
JPY 325 ` - JPY - ` -
Range forward option contracts USD - ` - USD 150 ` 161
€ - ` - € 31 ` 12
£ - ` - £ 71 ` 57
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As at
March 31, 2020 March 31, 2019
Notional Fair Value Notional Fair Value
Buy: Forward contracts USD 480 ` 972 USD 730 ` (971)
MXN 11 ` (9) MXN 9 ` ^
JPY - ` - JPY 154 ` ^
DKK 9 ` - DKK 75 ` (13)
` (4,405) ` 3,824
^ Value is less than ` 1.
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
March 31, 2020 March 31, 2019
Balance as at the beginning of the year ` 3,024 ` (136)
Deferred cancellation gain/ (loss), net (201) 6
Changes in fair value of effective portion of derivatives (2,322) 1,072
Net gain/(loss) reclassified to statement of profit and loss on occurrence of hedged
(3,377) 2,082
transactions*
Gain/(loss) on cash flow hedging derivatives, net ` (5,900) ` 3,160
Balance as at the end of the year ` (2,876) ` 3,024
Deferred tax thereon 561 (600)
Balance as at the end of the year, net of deferred tax ` (2,315) ` 2,424
*Includes net gain/(loss) reclassified to revenue (March 31, 2020: ` (4,761), March 31, 2019: ` 2,585) and cost of revenues (March 31, 2020:
` 1,384, March 31, 2019: ` (503)).
The related hedge transactions for balance in cash flow hedging reserves as at March 31, 2020 are expected to occur and be reclassified
to the statement of profit and loss over a period of three years.
As at March 31, 2020 and 2019, 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.
From time to time, in the normal course of business, the Company transfers accounts receivables, unbilled receivables, net investment
in finance lease receivables (financials assets) to banks. Under the terms of the arrangements, the Company surrenders control over the
financial assets and transfer is without recourse. Accordingly, such transfers are recorded as sale of financial assets. Gains and losses on
sale of financial assets without recourse are recorded at the time of sale based on the carrying value of the financial assets and fair value
of servicing liability. The incremental impact of such transactions on our cash flow and liquidity for the year ended March 31, 2020 and
March 31, 2019 is not material.
In certain cases, transfer of financial assets may be with recourse. Under arrangements with recourse, the Company is obligated to
repurchase the uncollected financial assets, subject to limits specified in the agreement with the banks. These are reflected as part of
borrowings in the balance sheet.
Market Risk
Market risk is the risk of loss of future earnings, to fair values or to future cash flows that may result from a change in the price of a financial
instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates
and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial
instruments including investments, foreign currency receivables, payables and loans and borrowings.
The Company’s exposure to market risk is a function of investment and borrowing activities and revenue generating activities in foreign
currency. The objective of market risk management is to avoid excessive exposure of the Company’s earnings and equity to losses.
The Company manages market risk through a corporate treasury department, which evaluates and exercises independent control over the
entire process of market risk management. The corporate treasury department recommends risk management objectives and policies,
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which are approved by senior management and Audit Committee. The activities of this department include management of cash resources,
implementing hedging strategies for foreign currency exposures, borrowing strategies, and ensuring compliance with market risk limits
and policies.
The Company evaluates exchange rate exposure arising from these transactions and enters foreign currency derivative instruments to
mitigate such exposure. The Company follows established risk management policies, including the use of derivatives like foreign exchange
forward/option contracts to hedge forecasted cash flows denominated in foreign currency.
The Company has designated certain derivative instruments as cash flow hedges to mitigate the foreign exchange exposure of forecasted
highly probable cash flows.
As at March 31, 2020, a ` 1 increase in the spot exchange rate of the Indian rupee with the U.S. dollar would result in approximately ` 1,972
(statement of profit and loss ` 658 and other comprehensive income ` 1,314) decrease in the fair value, and a ` 1 decrease would result
in approximately ` 1,912 (statement of profit and loss ` 658 and other comprehensive income ` 1,254) increase in the fair value of foreign
currency dollar denominated derivative instruments (forward and option contracts).
The below table presents foreign currency risk from non-derivative financial instruments as of March 31, 2020 and 2019:
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As at March 31, 2020 and 2019, respectively, every 1% increase/decrease in the respective foreign currencies compared to functional
currency of the Company would impact results by approximately ` 488 and ` 266, respectively.
Credit risk
Credit risk arises from the possibility that customers may not be able to settle their obligations as agreed. To manage this, the Company
periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends, forward
looking macroeconomic information, analysis of historical bad debts and ageing of accounts receivable. Individual risk limits are set
accordingly. No single customer accounted for more than 10% of the accounts receivable as at March 31, 2020 and 2019, and revenues for
the year ended March 31, 2020 and 2019. There is no significant concentration of credit risk.
Counterparty risk
Counterparty risk encompasses issuer risk on marketable securities, settlement risk on derivative and money market contracts and credit
risk on cash and time deposits. Issuer risk is minimized by only buying securities which are at least AA rated in India based on Indian
rating agencies. Settlement and credit risk is reduced by the policy of entering transactions with counterparties that are usually banks or
financial institutions with acceptable credit ratings. Exposure to these risks are closely monitored and maintained within predetermined
parameters. There are limits on credit exposure to any financial institution. The limits are regularly assessed and determined based upon
credit analysis including financial statements and capital adequacy ratio reviews.
Liquidity risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price.
The Company’s corporate treasury department is responsible for liquidity and funding as well as settlement management. In addition,
processes and policies related to such risks are overseen by senior management. Management monitors the Company’s net liquidity
position through rolling forecasts on the basis of expected cash flows. As at March 31, 2020, cash and cash equivalents are held with
major banks and financial institutions.
The table below provides details regarding the remaining contractual maturities of significant financial liabilities at the reporting date. The
amounts include estimated interest payments and exclude the impact of netting agreements, if any.
Includes current obligation under borrowings classified under “Other current financial liabilities”
(1)
Includes current obligation under borrowings and financial leases classified under “Other current financial liabilities”
(2)
Includes future cash outflow toward estimated interest on borrowings and lease liabilities.
(3)
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The balanced view of liquidity and financial indebtedness is stated in the table below. This calculation of the net cash position is used by
the management for external communication with investors, analysts and rating agencies:
As at
March 31, 2020 March 31, 2019
Cash and cash equivalents ` 104,440 ` 103,902
Investments 189,635 219,988
Borrowings* (50,459) (51,279)
Loans to subsidiaries 9,472 -
` 253,088 ` 272,611
* Includes current obligation under borrowings classified under “Other current financial liabilities” as at March 31, 2020.
* Includes current obligation under borrowings and financial leases classified under “Other current financial liabilities” as at
March 31, 2019
Year ended
March 31, 2020 March 31, 2019
Income tax expense
Current taxes ` 22,067 ` 22,725
Deferred taxes 1,203 (160)
Income tax included in other comprehensive income on:
Unrealized gains on investment securities (230) 69
Gains/(losses) on cash flow hedging derivatives (1,161) (629)
Defined benefit plan actuarial gains / (losses) (169) (42)
Total income taxes ` 21,710 ` 21,963
The reconciliation between the provision of income tax and amounts computed by applying the Indian statutory income tax rate to profit
before taxes is as follows:
Year ended
March 31, 2020 March 31, 2019
Profit before tax ` 110,077 ` 98,705
Enacted income tax rate in India 34.94% 34.94%
Computed expected tax expense ` 38,461 ` 34,488
Effect of:
Income exempt from tax ` (12,630) ` (16,057)
Basis differences that will reverse during a tax holiday period 721 (796)
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Year ended
March 31, 2020 March 31, 2019
Income taxed at higher/ (lower) rates (318) 212
Taxes related to prior years 196 (1,092)
Changes in unrecognized deferred tax assets (4,633) 4,399
Expenses disallowed for tax purpose 1,476 1,415
Others, net (3) (4)
Total income taxes expenses ` 23,270 ` 22,565
Effective income tax rate 21.14% 22.86%
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Movement during the year ended March 31, 2019
Credit/
Credit/
(charge) in
As at April 1, (charge) in the Others As at March
Particulars other com-
2018 statement of (Note 34)* 31, 2019
prehensive
profit and loss
income
Carry-forward losses ` 407 ` (307) ` - ` - ` 100
Other liabilities 2,761 12 (42) 12 2,743
Allowances for lifetime expected credit losses 4,405 (39) - - 4,366
Cash flow hedges 28 - (628) - (600)
Property, plant and equipment (1,319) 983 - 3 (333)
Amortisable goodwill (90) 13 - - (77)
Interest income and fair value movement of
investments (1,739) 207 69 - (1,463)
SEZ Re-investment Reserve - (1,132) - - (1,132)
Others (396) 424 - 174 202
Total ` 4,057 ` 161 ` (601) ` 189 ` 3,806
* Includes additions on account of merger as explained in footnotes to Note 34.
Deferred taxes on unrealized foreign exchange gain / loss relating to cash flow hedges, fair value movements in investments and actuarial
gains/losses on defined benefit plans are recognized in other comprehensive income and presented within equity. Other than these, the
change in deferred tax assets and liabilities is primarily recorded in the statement of profit and loss.
In assessing the realisability of deferred tax assets, the Company considers the extent to which it is probable that the deferred tax asset
will be realized. 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, projected future taxable income and tax planning strategies in making this assessment. Based on this,
the Company believes that it is probable that the Company will realize the benefits of these deductible differences. The amount of deferred
tax asset considered realisable, however, could be reduced in the near term if the estimates of future taxable income during the carry-
forward period are reduced.
The Company has recognized deferred tax assets of ` 201 and ` 100 as at March 31, 2020 and 2019 in respect of capital loss incurred on
account of liquidation of a subsidiary. Management’s projections of future taxable capital gain support the assumption that it is probable
that sufficient taxable income will be available to utilize this deferred tax asset.
The Company has calculated its tax liability for current domestic taxes after considering MAT. The excess tax paid under MAT provisions
over and above normal tax liability can be carried forward and set-off against future tax liabilities computed under normal tax provisions.
The Company is carrying deferred tax assets of `3,425 as at March 31, 2020 relating to MAT.
A substantial portion of the profits of the Company’s India operations are exempt from Indian income taxes being profits attributable to
export operations and profits from units established under Special Economic Zone, 2005 scheme. Units in designated special economic
zones providing service on or after April 1, 2005 will be eligible for a deduction of 100 percent of profits or gains derived from the export
of services for the first five years from commencement of provision of services and 50 percent of such profits and gains for a further five
years. Certain tax benefits are also available for a further five years subject to the unit meeting defined conditions. Profits from certain
other undertakings are also eligible for preferential tax treatment. The tax holiday period being currently available to the Company expires
in various years through fiscal 2033-34. The expiration period of tax holiday for each unit within a SEZ is determined based on the number
of years that have lapsed following year of commencement of production by that unit. The impact of tax holidays has resulted in a decrease
of current tax expense of ` 11,963 and ` 15,390 for the year ended March 31, 2020 and 2019, respectively, compared to the effective tax
amounts that we estimate we would have been required to pay if these incentives had not been available. The effect of these tax incentives
on earnings per share for the year ended March 31, 2020 and 2019 was ` 2.05 and ` 2.56, respectively.
Deferred income tax liabilities are recognized for all taxable temporary differences except in respect of taxable temporary differences
associated with US branch profit tax where the timing of the reversal of the temporary difference can be controlled and it is probable that
the temporary difference will not reverse in the foreseeable future. Accordingly, deferred income tax liabilities on branch profit tax @ 15%
of the US branch profits have not been recognized as the Company intends to reinvest the earnings in the branch operations. Further, it is
not practicable to estimate the amount of the unrecognized deferred tax liabilities for these undistributed earnings.
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Year ended
March 31, 2020 March 31, 2019
Sale of Services ` 494,471 ` 468,529
Sales of Products 9,406 11,769
` 503,877 ` 480,298
A receivable is a right to consideration that is unconditional. A right to consideration is unconditional if only the passage of time is
required before payment of that consideration is due. For example, the Company recognizes a receivable for revenues related to time
and materials contracts or volume-based contracts. The Company presents such receivables as part of unbilled receivables at their
net estimated realizable value.
Contract liabilities: During the year ended March 31, 2020 the Company recognized revenue of ` 12,964 arising from contract
liabilities as at March 31, 2019. During the year ended March 31, 2019, the Company recognized revenue of ` 10,671 arising from
opening unearned revenue as at April 1, 2018.
Contract assets: During the year ended March 31, 2020, ` 9,654 of contract assets pertaining to fixed-price development contracts
has been reclassified to receivables on completion of milestones. During the year ended March 31, 2019, ` 9,369, of unbilled revenue
pertaining to fixed-price development contracts (balance as at April 1, 2018 of ` 12,417), has been reclassified to receivables on
completion of milestones.
Contract assets and liabilities are reported in a net position on a contract by contract basis at the end of each reporting period.
Revenue allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which
includes contract liabilities and amounts that will be invoiced and recognized as revenue in future periods. Applying the practical
expedient, the Company has not disclosed its right to consideration from customers in an amount that corresponds directly with the
value to the customer of the Company’s performance completed to date, which are contracts invoiced on time and material basis and
volume based.
As at March 31, 2020, the aggregate amount of transaction price allocated to remaining performance obligations, other than those
meeting the exclusion criteria above, was ` 221,618 of which approximately 74% is expected to be recognized as revenues within
two years, and the remainder thereafter. This includes contracts, with a substantive enforceable termination penalty if the contract
is terminated without cause by the customer, based on an overall assessment of the contract carried out at the time of inception.
Historically, customers have not terminated contracts without cause.
As at March 31, 2019, the aggregate amount of transaction price allocated to remaining performance obligations, other than those
meeting the exclusion criteria above, was ` 224,184 of which approximately 72% is expected to be recognized as revenues within
two years, and the remainder thereafter. This includes contracts, with a substantive enforceable termination penalty if the contract
is terminated without cause by the customer, based on an overall assessment of the contract carried out at the time of inception.
Historically, customers have not terminated contracts without cause.
C. Disaggregation of Revenues
The tables below present disaggregated revenues from contracts with customers by business segment and contract-type. The
Company believes that the below disaggregation best depicts the nature, amount, timing and uncertainty of revenue and cash flows
from economic factors
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Revenue by nature of contract
Year ended
March 31, 2020 March 31, 2019
Fixed price and volume based ` 301,352 ` 270,640
Time and Materials 193,119 197,889
Products 9,406 11,769
` 503,877 ` 480,298
Sale of hosted data center service business: During the year ended March 31, 2019, the Company has concluded the divestment of its
hosted data center business in Singapore and United Kingdom.
Loss of control in subsidiary: During the year ended March 31, 2019, the Company has reduced its equity holding from 74% to 11% in Wipro
Airport IT Services Limited.
The loss/ gain for the year ended March 31, 2019 on these transactions is insignificant.
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Remeasurements of the net defined benefit liability /(asset) recognized in other comprehensive income include:
Year ended
March 31, 2020 March 31, 2019
Re-measurement of net defined benefit liability/(asset)
Return on plan assets excluding interest income - (gain)/loss ` 20 ` (35)
Actuarial loss arising from financial assumptions 435 106
Actuarial (gains)/loss arising from demographic assumptions 202 (17)
Actuarial (gains)/loss arising from experience adjustments 212 (223)
` 869 ` (169)
Year ended
March 31, 2020 March 31, 2019
Current service cost ` 1,437 ` 1,205
Net interest on net defined benefit liability/(asset) (4) (12)
Net gratuity cost/(benefit) 1,433 1,193
Actual return on plan assets ` 539 ` 573
Gratuity is applicable only to employees drawing a salary in Indian rupees and there are no other foreign defined benefit gratuity plans.
Change in present value of defined benefit obligation is summarised below:
As at
March 31, 2020 March 31, 2019
Defined benefit obligation at the beginning of the year ` 8,249 ` 7,539
Transfer in 78 25
Current service cost 1,437 1,205
Interest on obligation 555 526
Benefits paid (915) (912)
Remeasurement (gains)/loss
Actuarial (gains)/loss arising from financial assumptions 435 106
Actuarial (gains)/loss arising from demographic assumptions 202 (17)
Actuarial (gains)/loss arising from experience adjustments 212 (223)
Translation adjustment 88 -
Defined benefit obligation at the end of the year ` 10,341 ` 8,249
Change in plan assets is summarised below:
As at
March 31, 2020 March 31, 2019
Fair value of plan assets at the beginning of the year ` 8,274 ` 7,673
Transfer in 33 -
Expected return on plan assets 559 538
Employer contributions 171 34
Benefits paid - (6)
Remeasurement gains/(loss)
Return on plan assets excluding interest income - gain/(loss) (20) 35
Translation adjustment 75 -
Fair value of plan assets at the end of the year ` 9,092 ` 8,274
Present value of unfunded obligation (1,249) 25
Recognized asset/(liability) ` (1,249) ` 25
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As at March 31, 2020 and 2019, plan assets were primarily invested in insurer managed funds
The Company has established an income tax approved irrevocable trust fund to which it regularly contributes to finance the liabilities
of the gratuity plan. The fund’s investments are managed by certain insurance companies as per the mandate provided to them by the
trustees and the asset allocation is within the permissible limits prescribed in the insurance regulations.
The principal assumptions used for the purpose of actuarial valuation of these defined benefit plans are as follows:
As at
March 31, 2020 March 31, 2019
Discount rate 5.69% 6.63%
Expected return on plan assets 5.69% 6.63%
Expected rate of salary increase 7.40% 7.52%
Duration of defined benefit obligations 7 years 6 years
The expected return on plan assets is based on expectation of the average long-term rate of return expected on investments of the fund
during the estimated term of the obligations.
The discount rate is primarily based on the prevailing market yields of Indian government securities for the estimated term of the
obligations. The estimates of future salary increases considered takes into account the inflation, seniority, promotion and other relevant
factors. Attrition rate considered is the management’s estimate, based on previous years’ employee turnover of the Company.
The expected future contribution and estimated future benefit payments from the fund are as follows:
Expected contribution to the fund during the year ending March 31, 2021 ` 2,956
Estimated benefit payments from the fund for the year ending March 31:
2021 ` 1,372
2022 1,171
2023 1,144
2024 1,125
2025 1,104
Thereafter 9,449
Total ` 15,365
The expected benefits are based on the same assumptions used to measure the Company’s benefit obligations as at March 31, 2020.
Sensitivity for significant actuarial assumptions is computed to show the movement in defined benefit obligation by 0.5 percentage.
As at March 31, 2020, every 0.5 percentage point increase/ (decrease) in discount rate will result in (decrease)/increase of gratuity benefit
obligation by approximately ` (384) and `332, respectively.
As at March 31, 2020 every 0.5 percentage point increase/ (decrease) in expected rate of salary will result in increase/ (decrease) of gratuity
benefit obligation by approximately ` 312 and ` (291), respectively.
c) Provident fund:
The details of fund and plan assets are given below:
As at
March 31, 2020 March 31, 2019
Fair value of plan assets ` 61,397 ` 53,015
Present value of defined benefit obligation 61,397 53,015
Net (shortfall)/ excess ` - ` -
The plan assets have been primarily invested in government securities and corporate bonds.
The principal assumptions used in determining the present value obligation of interest guarantee under the deterministic approach are
as follows:
As at
March 31, 2020 March 31, 2019
Discount rate for the term of the obligation 6.05% 7.00%
Average remaining tenure of investment portfolio 7 years 8 years
Guaranteed rate of return 8.50% 8.65%
Also Refer to note 32 for details of employee stock options.
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* Miscellaneous expenses for the year ended March 31, 2019 include an amount of ` 5,141 paid to National Grid on settlement of a legal
claim against the Company
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 year, excluding equity shares purchased by the Company and held as treasury
shares.
Year ended
March 31, 2020 March 31, 2019
Profit attributable to equity holders of the Company ` 86,807 ` 76,140
Weighted average number of equity shares outstanding 5,833,384,018 6,007,376,837
Basic earnings per share ` 14.88 ` 12.67
Diluted: Diluted earnings per share is calculated by adjusting the weighted average number of equity shares outstanding during the year
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 year). 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.
Year ended
March 31, 2020 March 31, 2019
Profit attributable to equity holders of the Company ` 86,807 ` 76,140
Weighted average number of equity shares outstanding 5,833,384,018 6,007,376,837
Effect of dilutive equivalent share options 14,439,221 14,927,530
Weighted average number of equity shares for diluted earnings per share 5,847,823,239 6,022,304,367
Diluted earnings per share ` 14.84 ` 12.64
195
Wipro Limited
30. Dividends, Bonus and Buyback of equity shares
The Company declares and pays dividends in Indian rupees. According to the Companies Act, 2013 any dividend should be declared out
of accumulated distributable profits. A Company may, before the declaration of any dividend, transfer a percentage of its profits for that
financial year as it may consider appropriate to the reserves.
The cash dividends paid per equity share were ` 1 and ` 1, during the year ended March 31, 2020 and 2019, respectively, including an
interim dividend of ` 1 and ` 1 for the year ended March 31, 2020 and 2019.
During the year ended March 31, 2020, the Company has concluded the buyback of 323,076,923 equity shares as approved by the Board
of Directors on April 16, 2019. This has resulted in a total cash outflow of ` 105,000. In line with the requirement of the Companies Act,
2013, an amount of ` 105,000 has been utilized from the retained earnings. Further, capital redemption reserve of ` 646 (representing the
nominal value of the shares bought back) has been created as an apportionment from retained earnings. Consequent to such buyback,
share capital has reduced by ` 646.
During the year ended March 31, 2019, the bonus issue in the proportion of 1:3 i.e.1 (One) bonus equity share of ` 2 each for every 3 (three)
fully paid-up equity shares held (including ADS holders) was approved by the shareholders of the Company on February 22, 2019, through
Postal Ballot /e-voting. Subsequently, on March 8, 2019, the Company allotted 1,508,469,180 equity shares to shareholders who held
equity shares as on the record date of March 7, 2019 and ` 3,016 (representing par value of ` 2 per share) was transferred from capital
redemption reserve, securities premium and retained earnings to the share capital.
The Company’s goal is to continue to be able to return excess liquidity to shareholders by continuing to distribute annual dividends in
future periods.
The amount of future dividends/ buyback of equity shares will be balanced with efforts to continue to maintain an adequate liquidity
status.
The capital structure as of March 31, 2020 and 2019 was as follows:
As at
March 31, 2020 March 31, 2019 % Change
Total equity (A) ` 464,537 ` 493,920 (5.95%)
As percentage of total capital 88.63% 90.59%
Current borrowings * ` 50,208 ` 51,059
Non-current borrowings 251 220
Lease Liabilities 9,121 -
Total borrowings and lease liabilities (B) ` 59,580 ` 51,279 16.19%
As percentage of total capital 11.37% 9.41%
Total capital (A) + (B) ` 524,117 ` 545,199 (3.87%)
* Includes current obligation under borrowings classified under “Other current financial liabilities” (Refer to note 15)
In 1984, the Company established a controlled trust called the Wipro Equity Reward Trust (“WERT”). In the earlier years, WERT purchased
shares of the Company out of funds borrowed from the Company. The Company’s Board Governance, Nomination and Compensation
Committee recommends to WERT certain officers and key employees, to whom WERT issues shares from its holdings at nominal price.
Such shares are then held by the employees subject to vesting conditions.
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Wipro Employee Stock Option Plans and Restricted Stock Unit Option Plans
A summary of the general terms of grants under stock option plans and restricted stock unit option plans are as follows:
Employees covered under Stock Option Plans and Restricted Stock Unit ("RSU") Option Plans (collectively “Stock Option Plans”) are grant-
ed an option to purchase shares of the Company at the respective exercise prices, subject to requirements of vesting conditions. These
options generally vest in tranches over a period of two to four years from the date of grant. Upon vesting, the employees can acquire one
equity share for every option.
* The maximum contractual term for these Stock Option Plans and RSU Option Plans is perpetual until the options are available for
grant under the plan.
** The maximum contractual term for these Stock Option Plans is up to May 29, 2023 until the options are available for grant under the
plan.
*** The maximum contractual term for these Stock Option Plans is up to July 26, 2020 until the options are available for grant under the
plan.
Year ended
March 31, 2020 March 31, 2019
Range of
Particulars Weighted Weighted
exercise prices
Number Average Number Average
Exercise Price Exercise Price
Outstanding at the beginning of the year ` 2 17,607,463 ` 2 13,543,997 ` 2
US $ 0.03 14,446,790 US $ 0.03 10,199,054 US $ 0.03
Bonus on outstanding ` 2 - ` 2 4,773,755 ` 2
(Refer to note 30) US $ 0.03 - US $ 0.03 3,957,434 US $ 0.03
Granted * ` 2 5,662,500 ` 2 4,607,000 ` 2
US $ 0.03 5,341,000 US $ 0.03 4,849,000 US $ 0.03
Exercised ` 2 (4,610,572) ` 2 (2,739,097) ` 2
US $ 0.03 (2,496,125) US $ 0.03 (1,541,803) US $ 0.03
Modification to Cash Settled RSU's ** ` 2 - ` 2 - -
US $ 0.03 (5,681,966) US $ 0.03 - -
Forfeited and expired ` 2 (3,065,201) ` 2 (2,578,192) ` 2
US $ 0.03 (3,755,159) US $ 0.03 (3,016,895) US $ 0.03
Outstanding at the end of the year ` 2 15,594,190 ` 2 17,607,463 ` 2
US $ 0.03 7,854,540 US $ 0.03 14,446,790 US $ 0.03
Exercisable at the end of the year ` 2 1,502,957 ` 2 1,300,781 ` 2
US $ 0.03 1,212,560 US $ 0.03 948,877 US $ 0.03
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Wipro Limited
The following table summarizes information about outstanding stock options:
2020 2019
Weighted Weighted
Range of exercise price Weighted Weighted
Average Average
Number Average Number Average
Remaining life Remaining life
Exercise Price Exercise Price
(months) (months)
`2 15,594,190 23 ` 2 17,607,463 24 ` 2
The weighted-average grant-date fair value of options granted during the year ended March 31, 2020, and 2019 was ` 260.65 and ` 349.81
for each option, respectively. The weighted average share price of options exercised during the year ended March 31, 2020 and 2019 was `
267.04 and ` 325.85 for each option, respectively.
As at March 31, 2020, 4,721,388 units (net of units that were exercised or lapsed and forfeited) of Cash Settled RSU were outstanding
which include 63,999 exercisable units. The carrying value of liability towards Cash Settled RSU’s outstanding was ` 496 which includes `
15 towards exercisable units as at March 31, 2020.
* Includes 2,461,500 and 1,567,000 Performance based stock options (RSU) granted during the year ended March 31, 2020 and 2019,
respectively. 2,524,600 and 1,673,000 Performance based stock options (ADS) granted during the year ended March 31, 2020 and 2019,
respectively. Performance based stock options (RSU) were issued under Wipro Employee Restricted Stock Unit plan 2007 (WSRUP 2007
plan) and Performance based stock options (ADS) were issued under Wipro ADS Restricted Stock Unit Plan (WARSUP 2004 plan).
** Restricted Stock Units arrangement that were modified during the year ended March 31, 2020
Pursuant to the Securities Exchange Board of India (“SEBI”) circular dated October 10, 2019 prohibiting issuance of depository receipts by
listed companies to Non-Resident Indians (“NRI”), the Board Governance, Nomination and Compensation Committee in November, 2019
approved cash pay out to its NRI employees in lieu of shares and upon exercise of vested ADS RSU under the Company’s WARSUP 2004
Plan, based on prevailing market price of ADS on the date of exercise. This change was accounted for as a modification and the fair value
on the date of modification of ` 561 has been recognized as financial liability with a corresponding adjustment to equity.
2019 2019
Later than one year but not later than five years 158 152
Operating leases: Until March 31, 2019, prior to adoption of Ind AS 116, the Company had taken office, vehicles and IT equipment under
cancellable and non-cancellable operating lease agreements that were renewable on a periodic basis at the option of both the lessor and
the lessee. The operating lease agreements extended up to a maximum of fifteen years from their respective dates of inception and some
of these lease agreements had price escalation clause. Rental payments under operating leases were ` 3,494 during the year ended March
31, 2019.
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Details of contractual payments under non-cancellable leases as at March 31, 2019 are given below:
As at
March 31, 2019
Not later than one year ` 4,018
Later than one year and not later than five years 4,991
Later than five years 702
Total ` 9,711
Country of
Subsidiaries Subsidiaries Subsidiaries
Incorporation
Wipro, LLC USA
Wipro Gallagher Solutions, LLC USA
Opus Capital Markets Consultants, LLC USA
Wipro Promax Analytics Solutions Americas, LLC USA
Wipro Insurance Solutions, LLC USA
Wipro IT Services, LLC USA
HealthPlan Services, Inc. ** USA
Appirio, Inc. ** USA
Cooper Software, Inc. USA
Infocrossing, LLC USA
Wipro US Foundation USA
International TechneGroup Incorporated ** USA
Rational Interaction, Inc. ** USA
Wipro Overseas IT Services India
Pvt. Ltd
Wipro Japan KK Japan
Wipro Shanghai Limited China
Wipro Trademarks Holding India
Limited
Wipro Travel Services Limited India
Wipro Holdings (UK) Limited U.K.
Designit A/S Denmark
Designit Denmark A/S Denmark
Designit Germany GmbH Germany
Designit Oslo A/S Norway
Designit Sweden AB Sweden
Designit T.L.V Ltd. Israel
Designit Tokyo Ltd. Japan
Designit Spain Digital, S.L. ** Spain
Wipro Europe Limited U.K.
Wipro UK Limited U.K.
Wipro Financial Services UK U.K.
Limited
Wipro IT Services S.R.L. Romania
Wipro IT Services SE (formerly U.K.
Wipro Cyprus SE)
Wipro Doha LLC # Qatar
Wipro Technologies SA DE CV Mexico
Wipro Philippines, Inc. Philippines
199
Wipro Limited
Country of
Subsidiaries Subsidiaries Subsidiaries
Incorporation
Wipro Holdings Hungary Korlátolt Hungary
Felelosségu Társaság
Wipro Holdings Investment Korlátolt Felelosségu Hungary
Társaság
Wipro Information Technology Egypt
Egypt SAE
Wipro Arabia Co. Limited * Saudi Arabia
Women's Business Park Technologies Limited * Saudi Arabia
Wipro Poland SP Z.O.O Poland
Wipro IT Services Poland SP Z.O.O Poland
Wipro Technologies Australia Pty Australia
Ltd
Wipro Corporate Technologies Ghana
Ghana Limited
Wipro Technologies South Africa South Africa
(Proprietary) Limited
Wipro Technologies Nigeria Limited Nigeria
Wipro IT Service Ukraine, LLC Ukraine
Wipro Information Technology Netherlands
Netherlands BV.
Wipro Portugal S.A. ** Portugal
Wipro Technologies Limited Russia
Wipro Technology Chile SPA Chile
Wipro Solutions Canada Limited Canada
Wipro Information Technology Kazakhstan LLP Kazakhstan
Wipro Technologies W.T. Sociedad Anonima Costa Rica
Wipro Outsourcing Services (Ireland) Limited Ireland
Wipro Technologies VZ, C.A. Venezuela
Wipro Technologies Peru S.A.C. Peru
Wipro do Brasil Servicos de Tecnologia S.A. Brazil
Wipro do Brasil Technologia Ltda ** Brazil
Wipro Technologies SA Argentina
Wipro Technologies S.R.L. Romania
PT. WT Indonesia Indonesia
Wipro (Thailand) Co. Limited Thailand
Wipro Bahrain Limited Co. S.P.C. Bahrain
Wipro Gulf LLC Sultanate of Oman
Rainbow Software LLC Iraq
Wipro Networks Pte Limited Singapore
Wipro (Dalian) Limited China
Wipro Technologies SDN BHD Malaysia
Wipro Chengdu Limited China
Wipro IT Services Bangladesh Bangladesh
Limited
Wipro HR Services India India
Private Limited
* 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 Co. Limited and 55% of the equity securities of Women’s Business Park Technologies Limited are held by Wipro Arabia Co. Limited.
# 51% of equity securities of Wipro Doha LLC are held by a local shareholder. However, the beneficial interest in these holdings is with the
Company.
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The Company controls ‘The Wipro SA Broad Based Ownership Scheme Trust’, ‘Wipro SA Broad Based Ownership Scheme SPV (RF) (PTY)
LTD incorporated in South Africa and Wipro Foundation in India
Vide its order dated March 29, 2019, the Hon’ble National Company Law Tribunal, Bengaluru bench, approved the scheme of amalgamation
for the merger of wholly owned subsidiaries Wipro Information Technology Austria GmbH, Wipro Technologies Austria GmbH, NewLogic
Technologies SARL and Appirio India Cloud Solutions Private Limited with Wipro Limited. As per the said scheme, the appointed date is
April 1, 2018.
** Step Subsidiary details of Wipro Portugal S.A, Wipro do Brasil Technologia Ltda, Designit Spain Digital, S.L, HealthPlan Services, Inc,
Appirio, Inc, International TechneGroup Incorporated and Rational Interaction, Inc. are as follows:
Country of
Subsidiaries Subsidiaries Subsidiaries
Incorporation
Wipro Portugal S.A. Portugal
Wipro Technologies GmbH Germany
Cellent GmbH Germany
Cellent GmbH Austria
Wipro do Brasil Brazil
Technologia Ltda
Wipro Do Brasil Sistemetas De Brazil
Informatica Ltd
Designit Spain Digital, Spain
S.L.
Designit Colombia S A S Colombia
Designit Peru SAC Peru
HealthPlan Services, Inc. USA
HealthPlan Services Insurance USA
Agency, LLC
International USA
TechneGroup
Incorporated
International TechneGroup Ltd. U.K.
ITI Proficiency Ltd Israel
International TechneGroup S.R.L. Italy
Mech Works S.R.L. Italy
Appirio, Inc. USA
Appirio, K.K Japan
Topcoder, LLC. USA
Appirio Ltd Ireland
Appirio Ltd (UK) U.K.
Rational Interaction, Inc. USA
Rational Consulting Australia Australia
Pty Ltd
Rational Interaction Limited Ireland
As at March 31, 2020 the Company held 43.7% interest in Drivestream Inc, 33% interest in Denim Group Limited and 33.3% in Denim
Group Management, LLC, accounted for using the equity method.
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Wipro Limited
The other related parties are:
Name of the related parties: Nature
Azim Premji Foundation Entity controlled by Director
Azim Premji Foundation for Development Entity controlled by Director
Hasham Traders Entity controlled by Director
Prazim Traders Entity controlled by Director
Zash Traders Entity controlled by Director
Hasham Investment and Trading Co. Pvt. Ltd Entity controlled by Director
Azim Premji Philanthropic Initiatives Pvt. Ltd Entity controlled by Director
Azim Premji Trust Entity controlled by Director
Wipro Enterprises (P) Limited Entity controlled by Director
Wipro GE Healthcare Private Limited Entity controlled by Director
(i) Effective July 31, 2019, Mr. Rishad A Premji was appointed as Whole-time director (designated as Chairiman by the Board of Directors
of the Company).
(ii) Effective July 31, 2019, Mr. Abidali Z Neemuchwala was designated and appointed as Managing Director in addition to his existing
position as Chief Executive Officer. On January 31, 2020, the Company announced that Mr. Abidali Z Neemuchwala has decided to
step down from the position of Chief Executive Officer and Managing Director due to family commitments and he will continue to hold
the office of Chief Executive Officer and Managing Director, until a successor is appointed, for a smooth transition and to ensure that
business continues as usual. The Board of Directors has, at its meeting held on May 29, 2020, noted the resignation of Mr. Abidali Z.
Neemuchwala as the Chief Executive Officer and Managing Director with effect from the end of day on June 1, 2020.
(iii) On July 30, 2019, Mr. Azim H Premji retired as Executive Chairman and Managing Director and was appointed as Non-Executive
Non-Independent Director with effect from July 31, 2019.
(iv) Mr. N Vaghul and Dr. Ashok S. Ganguly retired as Non- Executive Director with effect from July 31, 2019.
(v) Ms. Arundhati Bhattacharya was appointed as Non-Executive Director with effect from January 1, 2019. The Board of Directors has, at
its meeting held on May 29, 2020, noted the resignation of Ms. Arundhati Bhattacharya as an Independent Director with effect from
close of business hours on June 30, 2020.
Relatives of key management personnel:
- Yasmeen H. Premji
- Tariq Azim Premji
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The Company has the following related party transactions for the year ended March 31, 2020 and 2019:
Year ended
March 31, 2020 March 31, 2019
Sale of services
Wipro, LLC ` 47,765 ` 35,074
Wipro Solutions Canada Limited 1,999 2,297
Wipro Technologies Gmbh 1,693 1,673
Wipro Gallagher Solutions, LLC 1,612 1,459
Wipro Networks Pte Limited 1,435 1,839
Wipro Holdings (UK) Limited 1,336 1,511
203
Wipro Limited
Year ended
March 31, 2020 March 31, 2019
Wipro Information Technology Netherlands BV. 1,256 1,458
Appirio, Inc. 1,118 1,469
HealthPlan Services, Inc. 810 724
Wipro Arabia Co. Limited 748 548
Wipro Technologies South Africa (Proprietary) Limited 703 1,089
Purchase of services
Appirio, Inc. ` 3,503 ` 2,390
Wipro Technologies Gmbh 2,439 1,275
Wipro Philippines, Inc. 2,402 2,338
Wipro, LLC 2,315 1,832
Wipro Technologies SA DE CV 2,132 1,680
Wipro Technologies S.R.L. 1,801 2,314
Wipro IT Services Poland SP Z.O.O 1,468 901
Wipro do Brasil Technologia Ltda 1,084 2,374
Appirio Ltd (UK) 718 302
Wipro (Dalian) Limited 480 543
Wipro Chengdu Limited 479 394
Wipro Portugal S.A. 462 934
Designit Denmark A/S 382 315
Wipro Networks Pte Limited 329 335
Cellent GmbH 320 359
Asset purchased/ capitalized
Wipro Enterprises (P) Limited ` 741 ` 240
Dividend paid
Zash Traders ` 1,143 ` 903
Prazim Traders 1,127 891
Hasham Traders 939 742
Azim Premji Trust 757 618
Commission paid
Wipro Technologies Gmbh ` 719 ` 876
Wipro Japan KK 220 203
Rent paid
Wipro, LLC ` 61 ` 59
Wipro Holdings (UK) Limited 51 34
Buyback of shares
Hasham Traders ` 16,338 ` -
Prazim Traders 19,617 -
Zash Traders 19,890 -
Azim Premji Trust 13,179 -
Azim H Premji 3,986 -
Rental income
Wipro Enterprises (P) Limited ` 44 ` 42
Designit Denmark A/S 35 33
Wipro, LLC 174 139
Remuneration paid to key management personnel
Azim H Premji* ` 15 ` 18
Abidali Z Neemuchwala 323 273
Rishad A Premji 52 68
Jatin Pravinchandra Dalal 44 61
M. Sanaulla Khan 15 16
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Year ended
March 31, 2020 March 31, 2019
Corporate guarantee commission
Wipro Gulf LLC ` 37 ` 49
Wipro Solutions Canada Ltd 45 45
Wipro, LLC 93 69
Wipro Arabia Co. Limited 15 18
* Includes sitting fees and commission paid as Non-Independent- Non-Executive Director effective July 31, 2019.
As at
March 31, 2020 March 31, 2019
Performance and financial guarantees given by the banks on behalf of the company ` 13,511 ` 13,617
Guarantees given by the Company on behalf of subsidiaries 59 567
In March 2004, the Company received a tax demand for the year ended March 31, 2001 arising primarily on account of denial of deduction
under section 10A of the Income Tax Act, 1961 in respect of profit earned by the Company’s undertaking in Software Technology Park at
Bengaluru. The same issue was repeated in the successive assessments for the years ended March 31, 2002 to March 31, 2011 and the
aggregate demand is ` 47,583 (including interest of ` 13,832). 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, 2008. 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 majority of the
issues in favor of the Company up to years ended March 31, 2004. Department has filed a Special Leave Petition before the Supreme Court
of India for the years ended March 31, 2001 to March 31, 2004.
On similar issues for years up to March 31, 2000, the Hon’ble High Court of Karnataka has upheld the claim of the Company under section
10A of the Income Tax Act, 1961. For the year ended March 31, 2009, the appeals are pending before Income Tax Appellate Tribunal (“ITAT”).
For years ended March 31, 2010 and March 31, 2011, the Dispute Resolution Panel allowed the claim of the Company under section 10A of
the Income Tax Act, 1961. The Income tax authorities have filed an appeal before the Hon’ble ITAT.
For the year ended March 31, 2013, the Company received the final assessment order in November 2017 with a demand of ` 3,286 (including
interest of ` 1,166), arising primarily on account of section 10AA issues with respect to exclusion from Export Turnover. The Company has
filed an appeal before Hon’ble ITAT, Bengaluru within the prescribed timelines.
For the year ended March 31, 2014, the Company received the final assessment order in September 2018 with a demand of ` 1,030
(including nil interest), arising primarily on account of transfer pricing issues. The Company has filed an appeal before the Hon’ble ITAT,
Bengaluru within the prescribed timelines.
For the year ended March 31, 2015, the Company received the final assessment order in October 2019 with an estimated demand of
` 1,347 (including nil interest), arising primarily on account of capitalization of wages. The Company has filed an appeal before the Hon’ble
ITAT, Bengaluru within the prescribed timelines.
For the year ended March 31, 2016, the Company received the draft assessment order in December 2019 with an estimated demand of
` 704 (including nil interest), arising primarily on account of capitalization of wages. The Company has filed the objections before the
Dispute Resolution Panel (Bengaluru) within the prescribed timelines.
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Wipro Limited
For the year ended March 31, 2007 to year ending March 31, 2012, the Company has received a tax demand of ` 227 (including ` 102
interest) for non-deduction of tax at source on some payments. Company has already deposited the demand under protest. The Company
received order issued by ITAT, Bengaluru rejecting the Company’s appeal. The Company has filed an appeal against the order with the
Hon’ble High Court of Karnataka within the prescribed timelines. The Company has received a favorable order on this issue from the
Hon’ble High Court of Karnataka for the earlier years.
Income tax demands against the Company amounting to ` 77,873 and ` 66,441 are not acknowledged as debt as at March 31, 2020 and
March 31, 2019, respectively. These matters are pending before various Appellate Authorities and the management expects its position
will likely be upheld on ultimate resolution and will not have a material adverse effect on the Company’s financial position and results of
operations.
The contingent liability in respect of disputed demands for excise duty, custom duty, sales tax and other matters amounts to ` 8,033 and
` 8,477 as of March 31, 2020 and March 31, 2019. However, the resolution of these disputed demands is not likely to have a material and
adverse effect on the results of operations or the financial position of the Company.
The Hon’ble Supreme Court of India, through a ruling in February 2019, provided interpretation on the components of Salary on which the
Company and its employees are to contribute towards Provident Fund under the Employee’s Provident Fund Act. Based on the current
evaluation, the Company believes it is not probable that certain components of Salary paid by the Company will be subject to contribution
towards Provident Fund due to the Supreme Court order. The Company will continue to monitor and evaluate its position based on future
events and developments.
As per our report of even date attached For and on behalf of the Board of Directors
for Deloitte Haskins & Sells LLP Rishad A Premji M K Sharma Abidali Z Neemuchwala
Chartered Accountants Chairman Director Chief Executive Officer &
Firm's Registration No.: 117366W/W - 100018 Managing Director
Vikas Bagaria Jatin Pravinchandra Dalal M. Sanaulla Khan
Partner Chief Financial Officer Company Secretary
Membership No.: 60408
Bengaluru Bengaluru
May 29, 2020 May 29, 2020
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207
Wipro Limited
• We selected a sample of fixed price contracts with customers • We evaluated the incorporation of the applicable assumptions
accounted using percentage-of-completion method and into the estimate of expected credit losses and tested the
performed the following: mathematical accuracy and computation of the allowances by
• Read the contract and based on the terms and conditions using the same input data used by the Company.
evaluated whether recognizing revenue over time was • We evaluated the qualitative adjustment to the historical loss
appropriate, and the contract was included in management’s rates, including assessing the basis for the adjustments and the
calculation of revenue over time. reasonableness of the significant assumptions.
• Evaluated other information that supported the estimates of the
progress towards satisfying the performance obligation. Information Other than the Financial Statements and Auditor’s
• Evaluated the appropriateness of and consistency in the Report Thereon
application of management’s policies and methodologies to
estimate progress towards satisfying the performance obligation. • The Company’s Board of Directors is responsible for the other
• Compared efforts incurred with Company’s estimate of efforts information. The other information comprises the information
incurred to date to identify significant variations and evaluate included in the Management Discussion and Analysis, Board’s
whether those variations have been considered appropriately in report and Corporate Governance Report, but does not include
estimating the remaining efforts to complete the contract. the Conso lidated Financial Statements, Standalone Financial
• Tested the estimate for consistency with the status of delivery of Statements and our auditor’s report thereon.
milestones and customer acceptances to identify possible delays • Our opinion on the Consolidated Financial Statements does not
in achieving milestones, which require changes in estimated cover the other information and we do not express any form of
efforts to complete the remaining performance obligations. assurance conclusion thereon.
• In connection with our audit of the Consolidated Financial
Allowance for credit losses Refer Notes 2(iii)(g), 3(x)(A), and 10 to
Statements, our responsibility is to read the other information
the financial statements
and, in doing so, consider whether the other information
Key Audit Matter Description is materially inconsistent with the Consolidated Financial
Statements or our knowledge obtained during the course of our
The Company determines the allowance for credit losses based on
historical loss experience adjusted to reflect current and estimated audit or otherwise appears to be materially misstated.
future economic conditions. The Company considered current • If, based on the work we have performed, we conclude that there
and anticipated future economic conditions relating to industries is a material misstatement of this other information, we are
the Company deals with and the countries where it operates. In required to report that fact. We have nothing to report in this
calculating expected credit losses, the Company also considered regard.
credit reports and other related credit information for its customers
to estimate the probability of default in future and has taken into Management’s Responsibility for the Consolidated Financial
account estimates of possible effect from the pandemic relating to Statements
COVID-19.
The Company’s Board of Directors is responsible for the matters
We identified allowance for credit losses as a key audit matter
stated in section 134(5) of the Act with respect to the preparation and
because of the significant judgement involved in calculating the
presentation of these Consolidated Financial Statements that give a
expected credit losses. This required a high degree of auditor
true and fair view of the consolidated financial position, consolidated
judgment and an increased extent of effort when performing audit
financial performance including other comprehensive income,
procedures to evaluate the reasonableness of management’s
estimate of the expected credit losses. consolidated changes in equity and consolidated cash flows of the
Group in accordance with the Ind AS and other accounting principles
How the Key Audit Matter Was Addressed in the Audit generally accepted in India. The respective Board of Directors of the
companies included in the Group are responsible for maintenance of
Our audit procedures related to the allowance for credit losses for adequate accounting records in accordance with the provisions of the
trade receivables, unbilled receivables and contract assets included Act for safeguarding the assets of the Group and for preventing and
the following, among others:
detecting frauds and other irregularities; selection and application
• We tested the effectiveness of controls over the (1) development of appropriate accounting policies; making judgments and estimates
of the methodology for the allowance for credit losses, including that are reasonable and prudent; and design, implementation and
consideration of the current and estimated future economic maintenance of adequate internal financial controls, that were
conditions, (2) completeness and accuracy of information used operating effectively for ensuring the accuracy and completeness of
in the estimation of probability of default, and (3) computation of the accounting records, relevant to the preparation and presentation
the allowance for credit losses. of the Consolidated Financial Statements that give a true and fair
• For a sample of customers we tested the input data such as credit view and are free from material misstatement, whether due to fraud
reports and other credit related information used in estimating or error, which have been used for the purpose of preparation of the
the probability of default by comparing them to external and Consolidated Financial Statements by the Directors of the Company,
internal sources of information. as aforesaid.
208
Annual Report 2019-20
Corporate Overview | Management & Board Reports | Financial Statements
In preparing the Consolidated Financial Statements, the respective the Consolidated Financial Statements or, if such disclosures are
Board of Directors of the companies included in the Group are inadequate, to modify our opinion. Our conclusions are based on
responsible for assessing the ability of the respective entities to the audit evidence obtained up to the date of our auditor’s report.
continue as a going concern, disclosing, as applicable, matters However, future events or conditions may cause the Group to
related to going concern and using the going concern basis of cease to continue as a going concern.
accounting unless the respective Board of Directors either intends • Evaluate the overall presentation, structure and content of the
to liquidate or cease operations, or has no realistic alternative but
Consolidated Financial Statements, including the disclosures,
to do so.
and whether the Consolidated Financial Statements represent
the underlying transactions and events in a manner that achieves
The respective Board of Directors of the companies included in the
fair presentation.
Group are also responsible for overseeing the financial reporting
process of the Group. • Obtain sufficient appropriate audit evidence regarding the
financial information of the entities and business activities
Auditor’s Responsibility for the Audit of the Consolidated Financial within the Group to express an opinion on the Consolidated
Statements Financial Statements.
Our objectives are to obtain reasonable assurance about whether Materiality is the magnitude of misstatements in the Consolidated
the Consolidated Financial Statements as a whole are free from Financial Statements that, individually or in aggregate, makes it
material misstatement, whether due to fraud or error, and to probable that the economic decisions of a reasonably knowledgeable
issue an auditor’s report that includes our opinion. Reasonable user of the Consolidated Financial Statements may be influenced.
assurance is a high level of assurance, but is not a guarantee that We consider quantitative materiality and qualitative factors in
an audit conducted in accordance with SAs will always detect a (i) planning the scope of our audit work and in evaluating the
material misstatement when it exists. Misstatements can arise results of our work; and (ii) to evaluate the effect of any identified
from fraud or error and are considered material if, individually or misstatements in the Consolidated Financial Statements.
in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these We communicate with those charged with governance of the
Consolidated Financial Statements. Company regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any
As part of an audit in accordance with SAs, we exercise professional significant deficiencies in internal control that we identify during our
judgment and maintain professional skepticism throughout the audit.
audit. We also:
We also provide those charged with governance with a statement
• Identify and assess the risks of material misstatement of the that we have complied with relevant ethical requirements regarding
Consolidated Financial Statements, whether due to fraud or independence, and to communicate with them all relationships
error, design and perform audit procedures responsive to those and other matters that may reasonably be thought to bear on our
risks, and obtain audit evidence that is sufficient and appropriate independence, and where applicable, related safeguards.
to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for From the matters communicated with those charged with
one resulting from error, as fraud may involve collusion, forgery, governance, we determine those matters that were of most
intentional omissions, misrepresentations, or the override of significance in the audit of the Consolidated Financial Statements
internal control. of the current period and are therefore the key audit matters.
• Obtain an understanding of internal financial control relevant to We describe these matters in our auditor’s report unless law or
the audit in order to design audit procedures that are appropriate regulation precludes public disclosure about the matter or when, in
in the circumstances. Under section 143(3)(i) of the Act, we are extremely rare circumstances, we determine that a matter should not
also responsible for expressing our opinion on whether the be communicated in our report because the adverse consequences
Company and its subsidiary companies which are companies of doing so would reasonably be expected to outweigh the public
incorporated in India, has adequate internal financial controls interest benefits of such communication.
system in place and the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the Report on Other Legal and Regulatory Requirements
reasonableness of accounting estimates and related disclosures
1. As required by Section 143(3) of the Act, based on our audit we
made by the management.
report that:
• Conclude on the appropriateness of management’s use of
the going concern basis of accounting and, based on the audit a) We have sought and obtained all the information and
evidence obtained, whether a material uncertainty exists explanations which to the best of our knowledge and belief
related to events or conditions that may cast significant doubt were necessary for the purposes of our audit of the aforesaid
on the ability of the Group to continue as a going concern. If we Consolidated Financial Statements.
conclude that a material uncertainty exists, we are required to b) In our opinion, proper books of account as required by
draw attention in our auditor’s report to the related disclosures in law relating to preparation of the aforesaid Consolidated
209
Wipro Limited
Financial Statements have been kept so far as it appears the best of our information and according to the explanations
from our examination of those books. given to us, the remuneration paid by the Company to its
c) The Consolidated Balance Sheet, the Consolidated directors during the year is in accordance with the provisions
Statement of Profit and Loss (including Other Comprehensive of section 197 of the Act.
Income), the Consolidated Statement of Changes in Equity h) With respect to the other matters to be included in the
and the Consolidated Statement of Cash Flows dealt with Auditor’s Report in accordance with Rule 11 of the Companies
by this Report are in agreement with the relevant books of (Audit and Auditors) Rules, 2014, as amended in our opinion
account maintained for the purpose of preparation of the and to the best of our information and according to the
Consolidated Financial Statements. explanations given to us:
d) In our opinion, the aforesaid Consolidated Financial i) The Consolidated Financial Statements disclose the
Statements comply with the Ind AS specified under Section impact of pending litigations on the consolidated
133 of the Act. financial position of the Group,
e) On the basis of the written representations received from ii) Provision has been made in the Consolidated Financial
the directors of the Company as on March 31, 2020 taken Statements, as required under the applicable law or
on record by the Board of Directors of the Company and its accounting standards, for material foreseeable losses,
subsidiaries incorporated in India, and the reports of the if any, on long-term contracts including derivative
statutory auditors of its subsidiary companies incorporated contracts;
in India, none of the directors of the Group companies,
iii) There has been no delay in transferring amounts,
incorporated in India is disqualified as on March 31, 2020
required to be transferred, to the Investor Education
from being appointed as a director in terms of Section 164(2)
and Protection Fund by the Company and its subsidiary
of the Act.
companies incorporated in India.
f) With respect to the adequacy of the internal financial controls
over financial reporting and the operating effectiveness of
such controls, refer to our separate Report in “Annexure A” For DELOITTE HASKINS & SELLS LLP
which is based on the auditors’ reports of the company and Chartered Accountants
its subsidiary companies incorporated in India. Our report Firm Registration Number: 117366W/W-100018
expresses an unmodified opinion on the adequacy and
operating effectiveness of internal financial controls over Vikas Bagaria
financial reporting of those companies. Partner
Membership number: 60408
g) With respect to the other matters to be included in the
Bengaluru
Auditor’s Report in accordance with the requirements of
May 29, 2020
section 197(16) of the Act, as amended, in our opinion and to
Report on the Internal Financial Controls Over Financial Reporting essential components of internal control stated in the Guidance
under Clause (i) of Sub-section 3 of Section 143 of the Companies Note on Audit of Internal Financial Controls Over Financial Reporting
Act, 2013 (“the Act”) issued by the Institute of Chartered Accountants of India (“the
ICAI”). These responsibilities include the design, implementation
In conjunction with our audit of the Consolidated Financial and maintenance of adequate internal financial controls that were
Statements of the Company as of and for the year ended March 31, operating effectively for ensuring the orderly and efficient conduct
2020, we have audited the internal financial controls over financial of its business, including adherence to the respective company’s
reporting of Wipro Limited (hereinafter referred to as “the Company”) policies, the safeguarding of its assets, the prevention and detection
and its subsidiary companies, which are companies incorporated in of frauds and errors, the accuracy and completeness of the
India, as of that date. accounting records, and the timely preparation of reliable financial
information, as required under the Act.
Management’s Responsibility for Internal Financial Controls
Auditor’s Responsibility
The respective Board of Directors of the company, and its subsidiary
companies, which are companies incorporated in India, are Our responsibility is to express an opinion on the internal financial
responsible for establishing and maintaining internal financial controls over financial reporting of the Company, and its subsidiary
controls based on the internal control over financial reporting companies, which are companies incorporated in India, based on our
criteria established by the respective Companies considering the audit. We conducted our audit in accordance with the Guidance Note
210
Annual Report 2019-20
Corporate Overview | Management & Board Reports | Financial Statements
on Audit of Internal Financial Controls Over Financial Reporting (the of management and directors of the company; and (3) provide
“Guidance Note”) issued by the ICAI and the Standards on Auditing, reasonable assurance regarding prevention or timely detection of
prescribed under Section 143(10) of the Act, to the extent applicable unauthorised acquisition, use, or disposition of the company’s assets
to an audit of internal financial controls. Those Standards and the that could have a material effect on the financial statements.
Guidance Note require that we comply with ethical requirements and
plan and perform the audit to obtain reasonable assurance about Inherent Limitations of Internal Financial Controls over Financial
whether adequate internal financial controls over financial reporting Reporting
was established and maintained and if such controls operated
effectively in all material respects. Because of the inherent limitations of internal financial controls over
financial reporting, including the possibility of collusion or improper
Our audit involves performing procedures to obtain audit evidence management override of controls, material misstatements due to
about the adequacy of the internal financial controls system over error or fraud may occur and not be detected. Also, projections of any
financial reporting and their operating effectiveness. Our audit of evaluation of the internal financial controls over financial reporting
internal financial controls over financial reporting included obtaining to future periods are subject to the risk that the internal financial
an understanding of internal financial controls over financial control over financial reporting may become inadequate because
reporting, assessing the risk that a material weakness exists, and of changes in conditions, or that the degree of compliance with the
testing and evaluating the design and operating effectiveness of policies or procedures may deteriorate.
internal control based on the assessed risk. The procedures selected
depend on the auditor’s judgement, including the assessment of the Opinion
risks of material misstatement of the financial statements, whether
due to fraud or error. In our opinion to the best of our information and according to the
explanations given to us, the Company, and its subsidiary companies,
We believe that the audit evidence we have obtained, is sufficient and which are companies incorporated in India, have, in all material
appropriate to provide a basis for our audit opinion on the internal respects, an adequate internal financial controls system over
financial controls system over financial reporting of the Company, financial reporting and such internal financial controls over financial
and its subsidiary companies which are companies incorporated in reporting were operating effectively as at March 31, 2020, based
India. on, the internal control over financial reporting criteria established
by the respective companies considering the essential components
Meaning of Internal Financial Controls over Financial Reporting of internal control stated in the Guidance Note on Audit of
Internal Financial Controls Over Financial Reporting issued by the
A company’s internal financial control over financial reporting is a ICAI.
process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial
For DELOITTE HASKINS & SELLS LLP
statements for external purposes in accordance with generally
Chartered Accountants
accepted accounting principles. A company’s internal financial
Firm Registration Number: 117366W/W-100018
control over financial reporting includes those policies and
procedures that (1) pertain to the maintenance of records that, in
reasonable detail, accurately and fairly reflect the transactions and
Vikas Bagaria
dispositions of the assets of the company; (2) provide reasonable
Partner
assurance that transactions are recorded as necessary to permit
Membership number: 60408
preparation of financial statements in accordance with generally
Bengaluru
accepted accounting principles, and that receipts and expenditures of
May 29, 2020
the company are being made only in accordance with authorisations
211
Wipro Limited
Consolidated Balance Sheet
(` in millions, except share and per share data, unless otherwise stated)
As at As at
Notes
March 31, 2020 March 31, 2019
ASSETS
Property, plant and equipment 4 60,617 47,665
Right-of-Use Assets 5 16,748 -
Capital work-in-progress 18,811 21,418
Goodwill 6 126,894 113,220
Other intangible assets 6 16,362 13,762
Investments accounted for using the equity method 8 1,383 1,235
Financial assets
Investments 8 9,302 6,916
Derivative assets 9 - 173
Trade receivables 10 6,049 4,373
Other financial assets 11 5,881 5,146
Deferred tax assets (net) 28 6,005 5,604
Non-current tax assets (net) 11,414 20,603
Other non-current assets 12 13,472 17,227
Total non-current assets 292,938 257,342
Current assets
Inventories 13 1,865 3,951
Financial assets
Investments 8 189,635 220,716
Trade receivables 10 104,474 100,489
Cash and cash equivalents 14 144,499 158,529
Derivative assets 9 3,025 4,931
Unbilled receivables 25,209 22,880
Other financial assets 11 8,614 14,611
Current tax assets (net) 2,882 7,435
Contract assets 17,143 15,038
Other current assets 12 22,505 23,086
519,851 571,666
Assets held for sale 22 - 240
Total current assets 519,851 571,906
TOTAL ASSETS 812,789 829,248
EQUITY AND LIABILITIES
EQUITY
Equity share capital 15 11,427 12,068
Other equity 541,790 552,158
Equity attributable to the equity holders of the Company 553,217 564,226
Non-controlling interest 1,875 2,637
TOTAL EQUITY 555,092 566,863
212
Annual Report 2019-20
Corporate Overview | Management & Board Reports | Financial Statements
As at As at
Notes
March 31, 2020 March 31, 2019
LIABILITIES
Non-current liabilities
Financial liabilities
Borrowings 16 4,840 28,368
Derivative liabilities 9 138 -
Lease liabilities 16 12,638 -
Other financial liabilities 17 151 -
Deferred tax liabilities (net) 28 2,793 3,384
Non-current tax liabilities (net) 13,205 11,023
Other non-current liabilities 19 3,771 3,176
Provisions 18 3,768 2,084
Total non-current liabilities 41,304 48,035
Current liabilities
Financial liabilities
Borrowings 16 54,020 68,085
Trade payables 20 58,400 62,660
Derivative liabilities 9 7,231 1,310
Lease liabilities 16 6,560 -
Other financial liabilities 17 39,810 29,302
Contract liabilities 18,775 24,768
Current tax liabilities (net) 11,731 9,541
Other current liabilities 19 6,503 7,627
Provisions 18 13,363 11,057
Total current liabilities 216,393 214,350
TOTAL LIABILITIES 257,697 262,385
TOTAL EQUITY AND LIABILITIES 812,789 829,248
As per our report of even date attached For and on behalf of the Board of Directors
The accompanying notes form an integral part of these consolidated financial statements
for Deloitte Haskins & Sells LLP Rishad A. Premji M. K. Sharma Abidali Z. Neemuchwala
Chairman Director Chief Executive Officer
Chartered Accountants
& Managing Director
Firm’s Registration No: 117366W/W- 100018
Bengaluru Bengaluru
May 29, 2020 May 29, 2020
213
Wipro Limited
Consolidated Statement of Profit & Loss
(` in millions, except share and per share data, unless otherwise stated)
Year ended
Notes
March 31, 2020 March 31, 2019
INCOME
Revenue from operations 21 610,232 585,845
Other operating income 22 1,144 4,344
Other income 23 27,250 26,138
Total Income 638,626 616,327
EXPENSES
Purchases of stock-in-trade 9,360 14,073
Changes in inventories of finished goods and stock-in-trade 24 2,022 (673)
Employee benefits expense 25 326,571 299,774
Finance costs 26 7,328 7,375
Depreciation, amortization and impairment expense 20,855 19,467
Sub-contracting / technical fees / third party application 90,521 94,725
Facility expenses 19,733 22,213
Travel 18,169 17,768
Communication 4,812 4,561
Marketing and brand building 2,532 2,714
Legal and Professional charges 4,733 4,361
Allowance for lifetime expected credit losses 1,043 980
Other expenses 27 8,457 13,524
Total expenses 516,136 500,862
Share of net profit /(loss) of associates accounted for using the equity method 29 (43)
Profit before tax 122,519 115,422
Tax expense
Current tax 28 24,324 23,649
Deferred tax 28 477 1,594
Total tax expense 24,801 25,243
Profit for the year 97,718 90,179
Other Comprehensive Income (OCI)
Items that will not be reclassified subsequently to profit or loss:
Remeasurements of the net defined benefit liability /(asset) comprising actuarial gains and 25 (1,246) 282
losses
Net change in fair value of financial instruments measured at FVTOCI 700 (539)
Income tax relating to items that will not be reclassified to profit or loss 28 220 28
Items that will be reclassified to profit or loss:
Foreign currency translation differences 29
Translation difference relating to foreign operations 8,091 3,015
Net change in fair value of hedges of net investment in foreign operations - (287)
Reclassification of foreign currency translation differences to profit and loss
on sale of hosted data center services, Workday business and Cornerstone - (4,210)
OnDemand business
Net change in time value of option contracts designated as cash flow hedges 9 (648) 579
Net change in intrinsic value of option contracts designated as cash flow hedges 9 (1,941) 1,014
Net change in fair value of forward contracts designated as cash flow hedges 9 (3,305) 1,569
Net change in fair value of financial instruments measured at FVTOCI 1,015 (8)
Income tax relating to items that will be reclassified to profit or loss 28 1,371 (643)
Total other comprehensive (loss)/income for the year, net of taxes 4,257 800
Total comprehensive income for the year 101,975 90,979
214
Annual Report 2019-20
Corporate Overview | Management & Board Reports | Financial Statements
Year ended
Notes
March 31, 2020 March 31, 2019
Profit for the year attributable to:
Equity holders of the Company 97,223 90,037
Non-controlling interest 495 142
97,718 90,179
Total comprehensive income for the year attributable to:
Equity holders of the Company 101,322 90,728
Non-controlling interest 653 251
101,975 90,979
Earnings per equity share: (Equity shares of par value ` 2 each) 30
Basic 16.67 14.99
Diluted 16.63 14.95
Number of shares
Basic 5,833,384,018 6,007,376,837
Diluted 5,847,823,239 6,022,304,367
The accompanying notes form an integral part of these consolidated financial statements
As per our report of even date attached For and on behalf of the Board of Directors
for Deloitte Haskins & Sells LLP Rishad A. Premji M. K. Sharma Abidali Z. Neemuchwala
Chairman Director Chief Executive Officer
Chartered Accountants
& Managing Director
Firm’s Registration No: 117366W/W- 100018
Bengaluru Bengaluru
May 29, 2020 May 29, 2020
215
Wipro Limited
Consolidated Statement of Changes in Equity
(` in millions, except share and per share data, unless otherwise stated)
Equity share capital
Balance as at April 1, 2019 Change in equity share capital Balance as at March 31, 2020
12,068 (641) 11,427
Other equity
Reserves and Surplus Total
Share Special Foreign attributable
Cash flow Other Non-
Particulars application Securities Capital Share Options economic currency hedging comprehensive to equity controlling Total
Capital Retaine.-- holders
money premium redemption Outstanding Zone re- translation reserve income interest
reserve -d earnings of the
pending reserve reserve Account investment reserve
allotment reserve Company
Balance as at April 1, 2019 ^ 604 1,139 14 502,223 2,617 28,565 14,048 2,415 533 552,158 2,637 554,795
Adjustment on adoption of Ind AS 116(1) - - - - (872) - - - - - (872) - (872)
Adjusted balances as at April 1, 2019 ^ 604 1,139 14 501,351 2,617 28,565 14,048 2,415 533 551,286 2,637 553,923
Profit for the year - - - - 97,223 - - - - - 97,223 495 97,718
216
Other comprehensive income - - - - - - - 7,933 (4,730) 896 4,099 158 4,257
Total comprehensive income for the year - - - - 97,223 - - 7,933 (4,730) 896 101,322 653 101,975
Issue of equity shares on exercise of options - 742 - - - (742) - - - - - - -
Buyback of equity shares(2) - - - 646 (105,000) - - - - (104,354) - (104,354)
Transaction cost related to buyback - - - - (311) - - - - - (311) - (311)
Issue of shares by controlled trust on exercise - - - - 1,026 (1,026) - - - - - - -
of options*
Compensation cost related to employee share - - - - 9 1,262 - - - - 1,271 - 1,271
based payment
Effect of modification of ADS RSUs from equity - - - - - (561) - - - - (561) - (561)
settled to cash settled(3)
Transferred to Special economic zone re-
- - - - (15,239) - 15,239 - - - - - -
investment reserve
Cash dividend paid (including dividend tax
- - - - (6,863) - - - - - (6,863) - (6,863)
thereon)(2)
Cash dividend paid to Non-controlling interest - - - - - - - - - - - (1,415) (1,415)
Balance as at March 31, 2020 ^ 1,346 1,139 660 472,196 1,550 43,804 21,981 (2,315) 1,429 541,790 1,875 543,665
* Includes 22,746,081 and 27,353,853 treasury shares held as at March 31, 2020 and 2019, respectively by a controlled trust. 4,607,772 and 2,599,183 shares have been transferred by the controlled trust to eligible
employees on exercise of options during the year ended March 31, 2020 and 2019 respectively.
^ Value less than ` 1
(1)
Refer note 3
(2)
Refer note 34
(3)
Refer note 31
Consolidated Statement of Changes in Equity
(` in millions, except share and per share data, unless otherwise stated)
217
Corporate Overview |
for Deloitte Haskins & Sells LLP Rishad A Premji M. K. Sharma Abidali Z Neemuchwala
Chartered Accountants Chairman Director Chief Executive Officer
Firm’s Registration No: 117366W/W- 100018 & Managing Director
Wipro Limited
Consolidated Statement of Cash Flows
(` in millions, except share and per share data, unless otherwise stated)
For the year ended
March 31, 2020 March 31, 2019
Cash flows from operating activities:
Profit for the year 97,718 90,179
Adjustments to reconcile the profit for the year to net cash generated from operating activities:
Gain on sale of property, plant and equipment and intangible assets, net (11) (309)
Depreciation, amortization and impairment 20,855 19,467
Unrealized exchange (gain)/ loss, net and exchange (gain)/ loss on borrowings 6,376 (546)
Share-based compensation expense 1,262 1,938
Share of net (profit)/ loss of associates accounted for using equity method (29) 43
Income tax expense 24,801 25,243
Dividend and interest (income)/expenses, net (18,945) (17,371)
Gain from sale of business and loss of control in subsidiary, net (1,144) (4,344)
Changes in operating assets and liabilities; net of effects from acquisitions:
Trade receivables (3,327) 1,392
Unbilled receivables and Contract assets (3,561) 4,580
Inventories 2,085 (566)
Other assets (80) (6,909)
Trade payables, other liabilities and provisions (12,401) 20,844
Contract liabilities (6,572) 7,824
Cash generated from operating activities before taxes 107,027 141,465
Income taxes paid, net (6,384) (25,149)
Cash generated from operating activities 100,643 116,316
Cash flows from investing activities:
Purchase of property, plant and equipment (23,497) (22,781)
Proceeds from sale of property, plant and equipment 1,270 1,940
Purchase of investments (1,178,247) (930,614)
Proceeds from sale of investments 1,212,826 954,954
Proceeds from sale of hosted data centre services business and loss of control in
subsidiary, net of related expenses and cash - 26,103
Payment for business acquisitions including deposits and escrow, net of cash acquired (10,003) -
Proceeds from sale of business 7,459 -
Interest received 23,837 20,163
Dividend received 367 361
Cash generated from investing activities 34,012 50,126
Cash flows from financing activities:
Proceeds from issuance of equity shares and shares pending allotment 14 4
Repayment of borrowings (132,380) (104,039)
Proceeds from borrowings 106,342 65,161
Repayment of lease liabilities (6,784) -
Payment for deferred contingent consideration in respect of business combination - (265)
Payment for buy back of shares, including transaction cost (105,311) -
Interest paid (4,601) (4,796)
Payment of cash dividend (including dividend tax thereon) (6,863) (5,434)
Payment of cash dividend to Non-controlling interest (1,415) -
Cash used in financing activities (150,998) (49,369)
Net increase/ (decrease) in cash and cash equivalents during the year (16,343) 117,073
Effect of exchange rate changes on cash and cash equivalents 1,922 526
Cash and cash equivalents at the beginning of the year 158,525 40,926
Cash and cash equivalents at the end of the year (Note 14) 144,104 158,525
Refer Note 16 for supplementary information on cash flow statement
The accompanying notes form an integral part of these consolidated financial statements
As per our report of even date attached For and on behalf of the Board of Directors
for Deloitte Haskins & Sells LLP Rishad A Premji M. K. Sharma Abidali Z Neemuchwala
Chartered Accountants Chairman Director Chief Executive Officer
Firm’s Registration No: 117366W/W- 100018 & Managing Director
Vikas Bagaria Jatin Pravinchandra Dalal M. Sanaulla Khan
Partner Chief Financial Officer Company Secretary
Membership No. 60408
Bengaluru Bengaluru
May 29, 2020 May 29, 2020
218
Annual Report 2019-20
Corporate Overview | Management & Board Reports | Financial Statements
1. The Company overview following material items which have been measured at fair value as
required by relevant Ind AS:
Wipro Limited (“Wipro” or the “Parent Company”), together with its
subsidiaries and controlled trusts (collectively, “we”, “us”, “our”, “the a. Derivative financial instruments;
Company” or the “Group”) is a global information technology “IT”, b. Financial instruments classified as fair value through other
consulting and business process services “BPS” company. comprehensive income or fair value through profit or loss;
c. The defined benefit asset/ (liability) is recognized as the present
Wipro is a public limited company incorporated and domiciled in India.
value of defined benefit obligation less fair value of plan assets;
The address of its registered office is Wipro Limited, Doddakannelli,
Sarjapur Road, Bengaluru – 560 035, Karnataka, India. Wipro has its and
primary listing with BSE Ltd. (Bombay Stock Exchange) and National d. Contingent consideration.
Stock Exchange of India Ltd. The Company’s American Depository
Shares represendting equity shares are also listed on the New York (iii) Use of estimates and judgment
Stock Exchange.
The preparation of the consolidated financial statements in
These consolidated financial statements were authorized for issue conformity with Ind AS requires management to make judgments,
by the Company’s Board of Directors on May 29, 2020. estimates and assumptions that affect the application of accounting
policies and the reported amounts of assets, liabilities, income and
2. Basis of preparation of consolidated expenses. Actual results may differ from those estimates.
financial statements
Estimates and underlying assumptions are reviewed on an ongoing
(i) Statement of compliance and basis of preparation
basis. Revisions to accounting estimates are recognized in the period
The consolidated financial statements are prepared in accordance in which the estimates are revised and in any future periods affected.
with Indian Accounting Standards (“Ind AS”), the provisions of In particular, information about significant areas of estimation,
the Companies Act, 2013 (“the Companies Act”), as applicable uncertainty and critical judgments in applying accounting policies
and guidelines issued by the Securities and Exchange Board of that have the most significant effect on the amounts recognized in
India (“SEBI”). The Ind AS are prescribed under Section 133 of the the consolidated financial statements are included in the following
Companies Act read with Rule 3 of the Companies (Indian Accounting notes:
Standards) Rules, 2015 and Companies (Indian Accounting
Standards) Amendment Rules, 2016. a) Revenue recognition: The Company applies judgement to
determine whether each product or services promised to a
Accounting policies have been applied consistently to all periods
customer is capable of being distinct, and are distinct in the
presented in these consolidated financial statements except for new
context of the contract, if not, the promised product or services
accounting standards adopted by the Company.
are combined and accounted as a single performance obligation.
The Company allocates the arrangement consideration to
The consolidated financial statements correspond to the
separately identifiable performance obligation deliverables
classification provisions contained in Ind AS 1, “Presentation of
Financial Statements”. For clarity, various items are aggregated in the based on their relative stand-alone selling price. In cases where
consolidated statement of profit and loss and consolidated balance the Company is unable to determine the stand-alone selling
sheet. These items are disaggregated separately in the notes to the price the Company uses expected cost plus margin approach
consolidated financial statements, where applicable. in estimating the stand-alone selling price. The Company uses
the percentage of completion method using the input (cost
All amounts included in the consolidated financial statements are expended) method to measure progress towards completion
reported in Indian rupees (` in millions) except share and per share in respect of fixed price contracts. Percentage of completion
data, unless otherwise stated. Due to rounding off, the numbers method accounting relies on estimates of total expected contract
presented throughout the document may not add up precisely to the revenue and costs. This method is followed when reasonably
totals and percentages may not precisely reflect the absolute figures. dependable estimates of the revenues and costs applicable to
Previous year figures have been regrouped/re-arranged, wherever various elements of the contract can be made. Key factors that
necessary. are reviewed in estimating the future costs to complete include
estimates of future labor costs and productivity efficiencies.
(ii) Basis of measurement Because the financial reporting of these contracts depends on
The consolidated financial statements have been prepared on a estimates that are assessed continually during the term of these
historical cost convention and on an accrual basis, except for the contracts, revenue recognized, profit and timing of revenue for
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remaining performance obligations are subject to revisions as present value of the defined benefit obligations are based on
the contract progresses to completion. When estimates indicate actuarial valuation using the projected unit credit method.
that a loss will be incurred, the loss is provided for in the period in An actuarial valuation involves making various assumptions
which the loss becomes probable. Volume discounts are recorded that may differ from actual developments in the future. These
as a reduction of revenue. When the amount of discount varies include the determination of the discount rate, future salary
with the levels of revenue, volume discount is recorded based on increases and mortality rates. Due to the complexities involved
estimate of future revenue from the customer. in the valuation and its long-term nature, a defined benefit
obligation is highly sensitive to changes in these assumptions.
b) Impairment testing: Goodwill and intangible assets with infinite
All assumptions are reviewed at each reporting date.
useful life recognized on business combination are tested for
impairment at least annually and when events occur or changes f) Expected credit losses on financial assets: The impairment
in circumstances indicate that the recoverable amount of the provisions of financial assets and contract assets are based
asset or the cash generating unit to which these pertain is on assumptions about risk of default and expected timing
less than the carrying value. The Company assesses acquired of collection. The Company uses judgment in making these
intangible assets with finite useful life for impairment whenever assumptions and selecting the inputs to the expected credit
events or changes in circumstances indicate that the carrying loss calculation based on the Company’s history of collections,
amount may not be recoverable. The recoverable amount of the customer’s creditworthiness, existing market conditions as well
asset or the cash generating units is higher of value-in-use and as forward looking estimates at the end of each reporting period.
fair value less cost of disposal. The calculation of value in use
of an asset or a cash generating unit involves use of significant g) Measurement of fair value of non-marketable equity
estimates and assumptions which include turnover, growth investments: These instruments are initially recorded at cost and
rates and net margins used to calculate projected future cash subsequently measured at fair value. Fair value of investments
flows, risk-adjusted discount rate, future economic and market is determined using the market and income approaches. The
conditions. market approach includes the use of financial metrics and
ratios of comparable companies, such as revenue, earnings,
b) Income taxes: The major tax jurisdictions for the Company are
comparable performance multiples, recent financial rounds
India and the United States of America. Significant judgments
and the level of marketability of the investments. The selection
are involved in determining the provision for income taxes
of comparable companies requires management judgment and
including judgment on whether tax positions are probable of
is based on a number of factors, including comparable company
being sustained in tax assessments. A tax assessment can
sizes, growth rates, and development stages. The income
involve complex issues, which can only be resolved over extended
approach includes the use of discounted cash flow model, which
time periods.
requires significant estimates regarding the investees’ revenue,
c) Deferred taxes: Deferred tax is recorded on temporary differences costs, and discount rates based on the risk profile of comparable
between the tax bases of assets and liabilities and their carrying companies. Estimates of revenue and costs are developed using
amounts, at the rates that have been enacted or substantively available historical and forecast data.
enacted at the reporting date. The ultimate realization of deferred
tax assets is dependent upon the generation of future taxable h) Useful lives of property, plant and equipment: The Company
profits during the periods in which those temporary differences depreciates property, plant and equipment on a straight-line
and tax loss carry-forwards become deductible. The Company basis over estimated useful lives of the assets. The charge in
considers expected reversal of deferred tax liabilities and respect of periodic depreciation is derived based on an estimate
projected future taxable income in making this assessment. The of an asset’s expected useful life and the expected residual value
amount of deferred tax assets considered realizable, however, at the end of its life. The lives are based on historical experience
could reduce in the near term if estimates of future taxable with similar assets as well as anticipation of future events,
income during the carry-forward period are reduced. which may impact their life, such as changes in technology. The
estimated useful life is reviewed at least annually.
d) Business combination: In accounting for business combinations,
judgment is required in identifying whether an identifiable i) Useful lives of intangible assets: The Company amortizes
intangible asset is to be recorded separately from goodwill. intangible assets on a straight-line basis over estimated useful
Additionally, estimating the acquisition date fair value of the lives of the assets. The useful life is estimated based on a number
identifiable assets (including useful life estimates), and liabilities of factors including the effects of obsolescence, demand,
and contingent consideration assumed involves management competition and other economic factors such as the stability
judgment. These measurements are based on information of the industry and known technological advances and the level
available at the acquisition date and are based on expectations of maintenance expenditures required to obtain the expected
and assumptions that have been deemed reasonable by future cash flows from the assets. The estimated useful life is
management. Changes in these judgments, estimates, and reviewed at least annually.
assumptions can materially affect the results of operations.
j) Leases: Ind AS 116 defines a lease term as the non-cancellable
e) Defined benefit plans and compensated absences: The cost period for which the lessee has the right to use an underlying asset
of the defined benefit plans, compensated absences and the including optional periods, when an entity is reasonably certain
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to exercise an option to extend (or not to terminate) a lease. The All intra-Group balances, transactions, income and expenses are
Company considers all relevant facts and circumstances that eliminated in full on consolidation.
create an economic incentive for the lessee to exercise the option
when determining the lease term. The option to extend the lease Non-controlling interest
term is included in the lease term, if it is reasonably certain that
Non-controlling interests in the net assets (excluding goodwill)
the lessee would exercise the option. The Company reassesses
of consolidated subsidiaries are identified separately from the
the option when significant events or changes in circumstances
Company’s equity. The interest of non-controlling shareholders may
occur that are within the control of the lessee.
be initially measured either at fair value or at the non-controlling
k) Other estimates: The share based compensation expense interest’s proportionate share of the fair value of the acquiree’s
is determined based on the Company’s estimate of equity identifiable net assets. The choice of measurement basis is made on
instruments that will eventually vest. Fair valuation of derivative an acquisition to acquisition basis. Subsequent to acquisition, the
hedging instruments designated as cash flow hedges involves carrying amount of non-controlling interest is the amount of those
significant estimates relating to the occurrence of forecasted interests at initial recognition plus the non-controlling interest’s
transaction. share of subsequent changes in equity. Total comprehensive income
is attributed to non-controlling interests even if it results in the non-
l) Uncertainty relating to the global health pandemic on controlling interest having a deficit balance.
COVID-19: In assessing the recoverability of receivables
including unbilled receivables, contract assets and contract Investments accounted for using the equity method
costs, goodwill, intangible assets, and certain investments, the
Company has considered internal and external information up to Investments accounted for using the equity method are entities
the date of approval of these consolidated financial statements in respect of which, the Company has significant influence, but
including credit reports and economic forecasts. The Company not control, over the financial and operating policies. Generally,
has performed sensitivity analysis on the assumptions used a Company has a significant influence if it holds between 20 and
herein. Based on the current indicators of future economic 50 percent of the voting power of another entity. Investments
conditions, the Company expects to recover the carrying amount in such entities are accounted for using the equity method
of these assets. and are initially recognized at cost. The carrying amount of
investment is increased/ decreased to recognized investors share
The Company basis its assessment believes that the probability of profit or loss of the investee after the acquisition date.
of the occurrence of forecasted transactions is not impacted
Non-current assets and disposal groups held for sale
by COVID-19. The Company has also considered the effect of
changes, if any, in both counterparty credit risk and own credit Assets and liabilities of disposal groups that are available for
risk while assessing hedge effectiveness and measuring hedge immediate sale and where the sale is highly probable of being
ineffectiveness and continues to believe that there is no impact completed within one year from the date of classification are
on effectiveness of its hedges. considered and classified as assets held for sale and liabilities
associated with assets held for sale. Non-current assets and
The impact of COVID-19 remains uncertain and may be different disposal groups held for sale are measured at the lower of carrying
from what we have estimated as of the date of approval of amount and fair value less costs to sell.
these consolidated financial statements and the Company
will continue to closely monitor any material changes to future (ii) Functional and presentation currency
economic conditions.
Items included in the financial statements of each of the Company’s
entities are measured using the currency of the primary economic
3. Significant accounting policies environment in which these entities operate (i.e. the “functional
(i) Basis of consolidation currency”). These consolidated financial statements are presented in
Indian rupees, which is the functional currency of the Company.
Subsidiaries and controlled trusts
The Company determines the basis of control in line with the (iii) Foreign currency transactions and translation
requirements of Ind AS 110, Consolidated Financial Statements.
a) Transactions and balances
Subsidiaries and controlled trusts are entities controlled by the
Group. The Group controls an entity when the parent has power over Transactions in foreign currency are translated into the respective
the entity, it is exposed to, or has rights to, variable returns from functional currencies using the exchange rates prevailing at
its involvement with the entity and has the ability to affect those the date of the transaction. Foreign exchange gains and losses
returns through its power over the entity. The financial statements resulting from the settlement of such transactions and from
of subsidiaries and controlled trusts are included in the consolidated translation at the exchange rates prevailing at the reporting
financial statements from the date on which control commences date of monetary assets and liabilities denominated in foreign
until the date on which control ceases. currencies are recognized in the consolidated statement of profit
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and loss and reported within foreign exchange gains/(losses), employee and other advances, investments in equity and debt
net, within results of operating activities except when deferred in securities and eligible current and non-current assets; Financial
other comprehensive income as qualifying cash flow hedges and assets are derecognized when substantial risks and rewards of
qualifying net investment hedges. Gains/(losses), net, relating to ownership of the financial asset have been transferred. In cases
translation or settlement of borrowings denominated in foreign where substantial risks and rewards of ownership of the financial
currency are reported within finance costs. Non-monetary assets assets are neither transferred nor retained, financial assets are
and liabilities denominated in foreign currency and measured at derecognized only when the Company has not retained control
historical cost are translated at the exchange rate prevalent at over the financial asset.
the date of transaction. Translation differences on non-monetary
• financial liabilities, which include long and short-term loans and
financial assets measured at fair value at the reporting date,
borrowings, bank overdrafts, trade payables, lease liabilities and
such as equities classified as financial instruments measured at
eligible current and non-current liabilities.
fair value through other comprehensive income are included in
other comprehensive income, net of taxes.
Non-derivative financial instruments are recognized initially at fair
value. Subsequent to initial recognition, non-derivative financial
b) Foreign operations
instruments are measured as described below:
For the purpose of presenting consolidated financial statements,
a. Cash and cash equivalents
the assets and liabilities of the Company’s foreign operations
that have a functional currency other than Indian rupees are The Company’s cash and cash equivalents consist of cash on
translated into Indian rupees using exchange rates prevailing at hand and in banks and demand deposits with banks, which can
the reporting date. Income and expense items are translated at be withdrawn at any time, without prior notice or penalty on the
the average exchange rates for the period. Exchange differences principal.
arising, if any, are recognized in other comprehensive income and
held in foreign currency translation reserve (FCTR), a component For the purposes of the cash flow statement, cash and cash
of equity, except to the extent that the translation difference is equivalents include cash on hand, in banks and demand
allocated to non-controlling interest. When a foreign operation deposits with banks, net of outstanding bank overdrafts that are
is disposed of, the relevant amount recognized in FCTR is repayable on demand and are considered part of the Company’s
transferred to the consolidated statement of profit and loss cash management system. In the consolidated balance sheet,
as part of the profit or loss on disposal. Goodwill and fair value bank overdrafts are presented under borrowings within current
adjustments arising on the acquisition of a foreign operation liabilities.
are treated as assets and liabilities of the foreign operation and
translated at the exchange rate prevailing at the reporting date. b. Investments
Foreign currency differences arising on the translation or Debt instruments that meet the following criteria are measured at
settlement of a financial liability designated as a hedge of a amortized cost (except for debt instruments that are designated
net investment in a foreign operation are recognized in other at fair value through Profit or Loss (FVTPL) on initial recognition):
comprehensive income and presented within equity in the FCTR • the asset is held within a business model whose objective is to
to the extent the hedge is effective. To the extent the hedge is hold assets in order to collect contractual cash flows; and
ineffective, such differences are recognized in the consolidated
statement of profit and loss. • the contractual terms of the instrument give rise on specified
dates to cash flows that are solely payment of principal and
When the hedged part of a net investment is disposed of, interest on the principal amount outstanding.
the relevant amount recognized in FCTR is transferred to the
consolidated statement of profit and loss as part of the profit Financial instruments measured at fair value through other
or loss on disposal. Foreign currency differences arising from comprehensive income (FVTOCI):
translation of intercompany receivables or payables relating to
foreign operations, the settlement of which is neither planned Debt instruments that meet the following criteria are measured
nor likely in the foreseeable future, are considered to form part of at fair value through other comprehensive income (FVTOCI)
net investment in foreign operation and are recognized in FCTR. (except for debt instruments that are designated at fair value
through Profit or Loss (FVTPL) on initial recognition):
(iv) Financial instruments • the asset is held within a business model whose objective is
A) Non-derivative financial instruments: achieved both by collecting contractual cash flows and selling
the financial asset; and
Non-derivative financial instruments consist of:
• the contractual terms of the instrument give rise on specified
• financial assets, which include cash and cash equivalents, trade dates to cash flows that are solely payment of principal and
receivables, unbilled receivables, finance lease receivables, interest on the principal amount outstanding.
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c. Others f) Share options outstanding account
Changes in fair value of foreign currency derivative instruments The Share options outstanding account is used to record the
neither designated as cash flow hedges nor hedges of net value of equity-settled share based payment transactions with
investment in foreign operations are recognized in the employees. The amounts recorded in share options outstanding
consolidated statement of profit and loss and reported within account are transferred to securities premium reserve upon
foreign exchange gains/(losses), net within results from exercise of stock options and restricted stock unit options by
operating activities. Changes in fair value and gains/(losses), net, employees.
on settlement of foreign currency derivative instruments relating
to borrowings, which have not been designated as hedges are g) Foreign currency translation reserve (FCTR)
recorded in finance costs.
The exchange differences arising from the translation of
C) Derecognition of financial instruments financial statements of foreign subsidiaries, differences arising
from translation of long-term inter-company receivables or
The Company derecognizes a financial asset when the contractual
payables relating to foreign operations settlement of which is
rights to the cash flows from the financial asset expire or it transfers
neither planned nor likely in the foreseeable future, changes in
the financial asset and the transfer qualifies for derecognition under
fair value of the derivative hedging instruments and gains/losses
Ind AS 109. If the Company retains substantially all the risks and
on translation or settlement of foreign currency denominated
rewards of a transferred financial asset, the Company continues
borrowings designated as hedge of net investment in foreign
to recognize the financial asset and recognizes a borrowing for the
proceeds received. A financial liability (or a part of a financial liability) operations are recognized in other comprehensive income, net of
is derecognized from the group’s balance sheet when the obligation taxes and presented within equity in the FCTR.
specified in the contract is discharged or cancelled or expires.
h) Cash flow hedging reserve
(v) Equity and share capital Changes in fair value of derivative hedging instruments
a) Share capital and Securities premium reserve designated and effective as a cash flow hedge are recognized in
The authorized share capital of the Company as at March 31, other comprehensive income, net of taxes, and presented within
2020 is ` 25,274 divided into 12,504,500,000 equity shares equity as cash flow hedging reserve.
of ` 2 each, 25,000,000 preference shares of ` 10 each and
150,000 10% optionally convertible cumulative preference i) Special Economic Zone re-investment reserve
shares of ` 100 each. Par value of the equity shares is
The SEZ Re-Investment Reserve has been created out of profit
recorded as share capital and the amount received in excess
of eligible SEZ units as per provisions of section 10AA(1)(ii) of the
of par value is classified as Securities premium reserve.
Income–tax Act, 1961 for acquiring new plant and machinery. The
Every holder of the equity shares, as reflected in the records of said reserve should be utilized by the Company for acquiring plant
the Company as of the date of the shareholder meeting shall have and machinery as per terms of Section 10AA(2) of the Income-tax
one vote in respect of each share held for all matters submitted Act, 1961. This reserve is not freely available for distribution.
to vote in the shareholder meeting.
j) Other reserves
b) Shares held by controlled trust (Treasury shares)
Changes in the fair value of financial instruments measured at
The Company’s equity shares held by the controlled trust, which fair value through other comprehensive income and actuarial
is consolidated as a part of the Group are classified as Treasury gains and losses on defined benefit plans are recognized in other
shares. The Company has 22,746,081 and 27,353,853 treasury comprehensive income, net of taxes, and presented within equity
shares as at March 31, 2020 and 2019, respectively. Treasury in other reserves.
shares are recorded at acquisition cost.
k) Dividend
c) Retained earnings
Retained earnings comprises of the Company’s undistributed A final dividend, including tax thereon, on common stock is
earnings after taxes. recorded as a liability on the date of approval by the shareholders.
An interim dividend, including tax thereon, is recorded as a
d) Capital Reserve liability on the date of declaration by the board of directors.
Capital Reserve amounting to ` 1,139 (March 31, 2019:
l) Buyback of equity shares
` 1,139) is not freely available for distribution.
The buyback of equity shares and related transaction costs
e) Capital Redemption Reserve are recorded as a reduction of free reserves. Further, capital
Capital Redemption Reserve amounting to ` 660 (March 31, 2018: redemption reserve is created as an apportionment from retained
` 14) is not freely available for distribution. earnings.
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(vi) Property, plant and equipment consideration classified as liabilities, other than measurement
period adjustments, are recognized in the consolidated
a) Recognition and measurement
statement of profit and loss.
Property, plant and equipment are measured at cost less
accumulated depreciation and impairment losses, if any. Cost b) Goodwill
includes expenditures directly attributable to the acquisition of the
The excess of the cost of an acquisition over the Company’s
asset. General and specific borrowing costs directly attributable to
share in the fair value of the acquiree’s identifiable assets and
the construction of a qualifying asset are capitalized as part of the
liabilities is recognized as goodwill. If the excess is negative, a
cost.
bargain purchase gain is recognized in equity as capital reserve.
Goodwill is measured at cost less accumulated impairment (if
Capital work-in-progress are measured at cost less accumulated
any).
impairment losses, if any.
Business combinations are accounted for using the purchase The Company as a lessee
(acquisition) method. The cost of an acquisition is measured as
the fair value of the assets transferred, liabilities incurred and The Company enters into an arrangement for lease of land, buildings,
equity instruments issued at the date of exchange by the Company. plant and machinery including computer equipment and vehicles.
Identifiable assets acquired and liabilities and contingent Such arrangements are generally for a fixed period but may have
liabilities assumed in a business combination are measured extension or termination options. The Company assesses, whether
initially at fair value at the date of acquisition. Transaction costs the contract is, or contains, a lease, at its inception. A contract is, or
incurred in connection with a business acquisition are expensed contains, a lease if the contract conveys the right to –
as incurred. (a) control use of an identified asset.
(b) obtain substantially all the economic benefits from use of the
The cost of an acquisition also includes the fair value of any
identified asset, and
contingent consideration measured as at the date of acquisition.
Any subsequent changes to the fair value of contingent (c) direct the use of the identified asset.
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The Company determines the lease term as the non-cancellable For leases under which the Company is an intermediate lessor, the
period of a lease, together with periods covered by an option to extend Company accounts for the head-lease and the sub-lease as two
the lease, where the Company is reasonably certain to exercise that separate contracts. The sub-lease is further classified either as a
option. finance lease or an operating lease by reference to the RoU asset
arising from the head-lease.
The Company at the commencement of the lease contract recognizes
a Right-of-Use (RoU) asset at cost and corresponding lease liability, (ix) Inventories
except for leases with term of less than twelve months (short term
Inventories are valued at lower of cost and net realizable value,
leases) and low-value assets. For these short term and low value
including necessary provision for obsolescence. Cost is determined
leases, the company recognizes the lease payments as an operating
using the weighted average method.
expense on a straight-line basis over the lease term.
(x) Impairment
The cost of the right-of-use assets comprises the amount of the
initial measurement of the lease liability, any lease payments made A) Financial assets
at or before the inception date of the lease plus any initial direct costs,
The Company applies the expected credit loss model for
less any lease incentives received. Subsequently, the right-of-use
recognizing impairment loss on financial assets measured at
assets is measured at cost less any accumulated depreciation and
amortized cost, debt instruments classified as FVTOCI, trade
accumulated impairment losses, if any. The right-of-use assets are
receivables, unbilled receivables, contract assets, finance lease
depreciated using the straight-line method from the commencement
receivables, and other financial assets. Expected credit loss is
date over the shorter of lease term or useful life of right-of-use assets.
the difference between the contractual cash flows and the cash
The estimated useful lives of right-of-use assets are determined on
flows that the entity expects to receive, discounted using the
the same basis as those of property, plant and equipment.
effective interest rate.
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absences are recognized in the period in which the absences (xiv) Revenue
occur.
The Company derives revenue primarily from software development,
maintenance of software/hardware and related services, business
(xii) Share based payment transactions
process services, sale of IT and other products.
Selected employees of the Company receive remuneration in the
form of equity settled instruments or cash settled instruments, for Effective April 1, 2018, the Company adopted Ind AS 115 “Revenue
rendering services over a defined vesting period and for Company’s from Contracts with Customers” using the cumulative catch-up
performance-based stock options over the defined period. Equity transition method, applied to contracts that were not completed as
instruments granted are measured by reference to the fair value of April 1, 2018. The adoption of the new standard has resulted in a
of the instrument at the date of grant. In cases, where equity reduction of ` 2,279 in opening retained earnings, primarily relating
instruments are granted at a nominal exercise price, the intrinsic to certain contract costs because these do not meet the criteria for
value on the date of grant approximates the fair value. The expense recognition as costs to fulfil a contract.
is recognized in the consolidated statement of profit and loss with a
corresponding increase to the share options outstanding account, a Revenues from customer contracts are considered for recognition
and measurement when the contract has been approved by the
component of equity.
parties to the contract, the parties to contract are committed to
perform their respective obligations under the contract, and the
The equity instruments or cash settled instruments generally vest in
contract is legally enforceable. Revenue is recognized upon transfer
a graded manner over the vesting period. The fair value determined at
of control of promised products or services to customers in an amount
the grant date is expensed over the vesting period of the respective
that reflects the consideration the Company expects to receive in
tranches of such grants (accelerated amortization). The stock
exchange for those products or services. To recognize revenues, the
compensation expense is determined based on the Company’s
Company apply the following five step approach: (1) identify the
estimate of equity instruments or cash settled instruments that will
contract with a customer, (2) identify the performance obligations
eventually vest.
in the contract, (3) determine the transaction price, (4) allocate the
transaction price to the performance obligations in the contract, and
Cash Settled instruments granted are re-measured by reference (5) recognize revenues when a performance obligation is satisfied.
to the fair value at the end of each reporting period and at the When there is uncertainty as to collectability, revenue recognition is
time of vesting. The expense is recognized in the consolidated postponed until such uncertainty is resolved.
statement of profit and loss with a corresponding increase to
financial liability. At contract inception, the Company assesses its promise to transfer
products or services to a customer to identify separate performance
(xiii) Provisions obligations. The Company applies judgement to determine whether
each product or services promised to a customer are capable of being
Provisions are recognized when the Company has a present obligation distinct, and are distinct in the context of the contract, if not, the
(legal or constructive) as a result of a past event, it is probable that promised product or services are combined and accounted as a single
an outflow of economic benefits will be required to settle the performance obligation. The Company allocates the arrangement
obligation and a reliable estimate can be made of the amount of the consideration to separately identifiable performance obligation
obligation. based on their relative stand-alone selling price or residual method.
Stand-alone selling prices are determined based on sale prices for
The amount recognized as a provision is the best estimate of the the components when it is regularly sold separately, in cases where
consideration required to settle the present obligation at the end of the Company is unable to determine the stand-alone selling price
the reporting period, taking into account the risks and uncertainties the Company uses third-party prices for similar deliverables or the
surrounding the obligation. Company uses expected cost-plus margin approach in estimating
the stand-alone selling price.
When some or all of the economic benefits required to settle a
provision are expected to be recovered from a third party, the For performance obligations where control is transferred over time,
receivable is recognized as an asset, if it is virtually certain that revenues are recognized by measuring progress towards completion
reimbursement will be received and the amount of the receivable can of the performance obligation. The selection of the method to measure
be measured reliably. progress towards completion requires judgment and is based on the
nature of the promised products or services to be provided.
The method for recognizing revenues and costs depends on the
Provisions for onerous contracts are recognized when the expected
nature of the services rendered:
benefits to be derived by the Company from a contract are lower
than the unavoidable costs of meeting the future obligations under
A. Time and materials contracts
the contract. Provisions for onerous contracts are measured at
the present value of lower of the expected net cost of fulfilling the Revenues and costs relating to time and materials are recognized
contract and the expected cost of terminating the contract. as the related services are rendered.
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to determine whether a significant financing component nature and circumstances of each uncertain tax position. The
exists. As a practical expedient, the Company does not assess Company offsets current tax assets and current tax liabilities,
the existence of a significant financing component when the where it has a legally enforceable right to set off the recognized
difference between payment and transfer of deliverables is a amounts and where it intends either to settle on a net basis, or to
year or less. If the difference in timing arises for reasons other realize the asset and liability simultaneously.
than the provision of finance to either the customer or us, no
financing component is deemed to exist. b) Deferred income tax
• The Company may enter into arrangements with third party Deferred income tax is recognized using the balance sheet
suppliers to resell products or services. In such cases, the approach. Deferred income tax assets and liabilities are
Company evaluates whether the Company is the principal (i.e. recognized for deductible and taxable temporary differences
report revenues on a gross basis) or agent (i.e. report revenues on arising between the tax base of assets and liabilities and their
a net basis). In doing so, the Company first evaluates whether the carrying amount in these consolidated financial statements,
Company controls the good or service before it is transferred to except when the deferred income tax arises from the initial
the customer. If Company controls the good or service before it is recognition of goodwill or an asset or liability in a transaction that
transferred to the customer, Company is the principal; if not, the is not a business combination and affects neither accounting nor
Company is the agent. taxable profits or loss at the time of the transaction.
• Estimates of transaction price and total costs or efforts are
continuously monitored over the term of the contract and are Deferred income tax assets are recognized to the extent it is
recognized in net profit in the period when these estimates probable that taxable profit will be available against which
change or when the estimates are revised. Revenues and the the deductible temporary differences and the carry forward of
estimated total costs or efforts are subject to revision as the unused tax credits and unused tax losses can be utilized.
contract progresses.
Deferred income tax liabilities are recognized for all taxable
(xv) Finance costs temporary differences except in respect of taxable temporary
differences that is expected to reverse within the tax holiday
Finance costs comprises interest cost on borrowings and lease
period, taxable temporary differences associated with
liabilities, gains or losses arising on re-measurement of financial
investments in subsidiaries, associates and foreign branches
assets measured at FVTPL, gains/ (losses), net, on translation or
where the timing of the reversal of the temporary difference can
settlement of foreign currency borrowings and changes in fair value
be controlled and it is probable that the temporary difference will
and gains/ (losses) on settlement of related derivative instruments.
not reverse in the foreseeable future.
Borrowing costs that are not directly attributable to a qualifying
asset are recognized in the consolidated statement of profit and loss
The carrying amount of deferred income tax assets is reviewed at
using the effective interest method.
each reporting date and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow
(xvi) Other income
all or part of the deferred income tax asset to be utilized.
Finance and other income comprises interest income on deposits,
dividend income and gains / (losses) on disposal of investments. Deferred income tax assets and liabilities are measured at the
Interest income is recognized using the effective interest method. tax rates that are expected to apply in the period when the asset
Dividend income is recognized when the right to receive payment is is realized or the liability is settled, based on tax rates (and tax
established. laws) that have been enacted or substantively enacted at the
(xvii) Income tax reporting date.
Income tax comprises current and deferred tax. Income tax expense The Company offsets deferred income tax assets and liabilities,
is recognized in the consolidated statement of profit and loss except where it has a legally enforceable right to offset current tax
to the extent it relates to a business combination, or items directly assets against current tax liabilities, and they relate to taxes
recognized in equity or in other comprehensive income. levied by the same taxation authority on either the same taxable
entity, or on different taxable entities where there is an intention
a) Current income tax to settle the current tax liabilities and assets on a net basis or
Current income tax for the current and prior periods are their tax assets and liabilities will be realized simultaneously.
measured at the amount expected to be recovered from or paid
to the taxation authorities based on the taxable income for the (xviii) Earnings per share
period. The tax rates and tax laws used to compute the current Basic earnings per share is computed using the weighted average
tax amounts are those that are enacted or substantively enacted number of equity shares outstanding during the period adjusted
as at the reporting date and applicable for the period. While for treasury shares held. Diluted earnings per share is computed
determining the tax provisions, the Company assesses whether using the weighted-average number of equity and dilutive equivalent
each uncertain tax position is to be considered separately or shares outstanding during the period, using the treasury stock
together with one or more uncertain tax positions depending the
method for options, except where the results would be anti-dilutive.
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The number of equity shares and potentially dilutive equity shares lease, but discounted using the incremental borrowing rate at
are adjusted retrospectively for all periods presented for any splits the date of initial application,
and bonus shares issues including for change effected prior to the c) The Company excluded the initial direct costs from measurement
approval of the consolidated financial statements by the Board of of the RoU asset,
Directors.
d) The Company does not recognize RoU assets and lease liabilities
for leases with less than twelve months of lease term and low-
(xix) Cash flow statement
value assets on the date of initial application.
Cash flows are reported using the indirect method, whereby profit for The weighted average of discount rate applied to lease liabilities as
the period is adjusted for the effects of transactions of a non-cash at April 1, 2019 is 5.7%.
nature, any deferrals or accruals of past operating cash receipts or
payments and item of income or expenses associated with investing On adoption of Ind AS 116,
or financing cash flows. The cash from operating, investing and
financing activities of the Company are segregated. a) the Company has recognized right-of-use assets of
` 13,630 and corresponding lease liability ` 15,379.
(xx) Assets held for sale
b) the net carrying value of assets procured under the finance lease
Sale of business is classified as held for sale, if their carrying amount of ` 1,243 (gross carrying and accumulated depreciation value
is intended to be recovered principally through sale rather than of ` 3,420 and ` 2,177 respectively) have been reclassified from
through continuing use. The condition for classification as held for property, plant and equipment to right-of-use assets,
sale is met when disposal business is available for immediate sale c) obligations under finance leases ` 2,002 (non-current and
and the same is highly probable of being completed within one year current obligation under finance leases ` 496 and ` 1,506
from the date of classification as held for sale. respectively) have been reclassified to lease liabilities.
d) prepaid rent on leasehold land and other assets, which were
(xxi) Discontinued operations
earlier classified under Other assets have been reclassified to
A discontinued operation is a component of the Company’s business right-of-use assets by ` 2,222
that represents a separate line of business that has been disposed of
or is held for sale, or is a subsidiary acquired exclusively with a view The adoption of the new standard has resulted in a reduction of
to resale. Classification as a discontinued operation occurs upon ` 872 in opening retained earnings, net of deferred tax asset of
the earlier of disposal or when the operation meets the criteria to be ` 138.
classified as held for sale.
During the year ended March 31, 2020, the Company recognized
(xxii) Disposal of assets in the consolidated statement of profit and loss –
The gain or loss arising on disposal or retirement of assets are a) Depreciation expense from right-of-use assets of ` 5,911
recognized in the consolidated statement of profit and loss. (Refer Note 5)
b) Interest expenses on lease liabilities of ` 914
New Accounting standards adopted by the Company: c) Rent expense amounting to ` 44 pertaining to leases of low-value
Ind AS 116 - Leases assets and ` 2,085 pertaining to leases with less than twelve
months of lease term has been included under Facility expenses
On April 1, 2019, the Company adopted Ind AS 116, Leases, which
d) Income from subleasing right-of-use assets is not material
applied to all lease contracts outstanding as at April 1, 2019, using
modified retrospective method by recording the cumulative effect
Refer Note 5 for additions to right-of-use assets during the
of initial application as an adjustment to opening retained earnings.
year ended March 31, 2020 and carrying amount of right-of-use
The Company has made use of the following practical expedients
assets as at March 31, 2020 by class of underlying asset.
available in its transition to Ind AS 116: -
As at March 31, 2020, the Company is committed to certain
a) The Company will not reassess whether a contract is or contains
leases amounting to ` 1,399 which have not yet commenced. The
a lease. Accordingly, the definition of lease in accordance
term of such lease’s ranges from 2 to 8 years.
with Ind AS 17 will continue to be applied to lease contracts
entered by the Company or modified by the Company before
Lease payments during the year are disclosed under financing
April 1, 2019,
activities in the consolidated statement of cash flows.
b) The Company has applied a single discount rate to a portfolio
of leases of similar assets in similar economic environment. The comparatives as at and for the year ended March 31, 2019
Consequently, the Company has recorded its lease liability using have not been retrospectively restated.
the present value of remaining lease payments, discounted using
the incremental borrowing rate at the date of initial application The adoption of Ind AS 116 did not have any material impact
and the right-of-use asset at its carrying amount as if the on consolidated statement of profit and loss and earnings per
standard had been applied since the commencement date of the share.
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Wipro Limited
The difference between the lease obligation disclosed as of March 31, 2019 under Ind AS 17 and the value of the lease liabilities as of April
1, 2019 is primarily on account of practical expedients exercised for low value assets and short term leases as at adoption of the standard,
in measuring the lease liability and discounting the lease liabilities to the present value in accordance with Ind AS 116.
Particulars Total
Operating lease commitments disclosed as at March 31, 2019 ` 19,741
(Less): Impact of discounting on opening lease liability (1,954)
(Less): Short-term leases not recognized as a liability (1,675)
(Less): Low-value leases not recognized as a liability (64)
(Less): Leases commencing after 1st April, but entered into on or before 31st March (669)
Lease liability recognized as at April 1, 2019 ` 15,379
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* Including net carrying value of computer equipment and software amounting to ` 16,844 and ` 16,375 as at March 31, 2020 and 2019,
respectively.
** Includes impairment charge on software platform recognized on acquisitions, amounting to Nil and ` 1,480 for the year ended March
31, 2020 and 2019, respectively.
5. Right-of-use assets
Category of RoU Asset
Plant and Total
Land Buildings Vehicles
machinery *
Gross carrying value:
As at April 1, 2019 ` 2,003 ` 11,502 ` 2,941 ` 649 ` 17,095
Additions - 3,520 1,210 219 4,949
Additions through Business combinations - 364 - - 364
Disposals - (41) (47) (59) (147)
Translation adjustment - 279 132 17 428
As at March 31, 2020 ` 2,003 ` 15,624 ` 4,236 ` 826 ` 22,689
Accumulated depreciation:
Depreciation ` 27 ` 3,884 ` 1,731 ` 269 ` 5,911
Disposals - (18) (47) (10) (75)
Translation adjustment - 62 37 6 105
As at March 31, 2020 ` 27 ` 3,928 ` 1,721 ` 265 ` 5,941
Net carrying value as at March 31, 2020 ` 16,748
* includes computer equipment
6. Goodwill and Other intangible assets
The movement in goodwill balance is given below:
As at
March 31, 2020 March 31, 2019
Balance at the beginning of the year ` 113,220 ` 114,046
Translation adjustment 8,841 4,307
Disposal (Refer Note 22) - (4,893)
Acquisition through business combination (Refer Note 7) 4,833 -
Assets reclassified as held for sale (Refer Note 22) - (240)
Balance at the end of the year ` 126,894 ` 113,220
The Company is organized by three operating segments: IT Services and IT Products and India State Run Enterprise. Goodwill as at March
31, 2020 and 2019 has been allocated to the IT Services operating segment.
Goodwill recognized on business combinations is allocated to Cash Generating Units (CGUs), within the IT Services operating segment,
which are expected to benefit from the synergies of the acquisitions.
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Wipro Limited
Goodwill has been allocated to the CGUs as at March 31, 2020 as follows:
CGUs March 31, 2020
Banking Financial Services and Insurance (BFSI) ` 19,225
Healthcare and Life Sciences (Health BU) 55,642
Consumer (CBU) 14,501
Energy, Natural Resources and Utilities (ENU) 15,782
Manufacturing (MFG) 8,040
Technology (TECH) 12,661
Communication (COMM) 1,043
` 126,894
Following table presents the allocation of goodwill to the CGUs for the year ended March 31, 2019:
As at
CGUs
March 31, 2019
Banking Financial Services and Insurance (BFSI) ` 17,713
Healthcare and Life Sciences (Health BU) 50,670
Consumer (CBU) 13,587
Energy, Natural Resources and Utilities (ENU) 15,203
Manufacturing (MFG) 5,370
Technology (TECH) 9,707
Communication (COMM) 970
` 113,220
For impairment testing, goodwill is allocated to a CGU representing the lowest level within the Group at which goodwill is monitored for
internal management purposes, and which is not higher than the Company’s operating segment. Goodwill is tested for impairment at least
annually in accordance with the Company’s procedure for determining the recoverable value of each CGU.
The recoverable amount of the CGU is determined on the basis of Fair Value Less Cost of Disposal (FVLCD). The FVLCD of the CGU is
determined based on the market capitalization approach, using the turnover and earnings multiples derived from observable market data.
The fair value measurement is categorized as a level 2 fair value based on the inputs in the valuation techniques used.
Based on the above testing, no impairment was identified as at March 31, 2020 and 2019 as the recoverable value of the CGUs exceeded
the carrying value. Further, none of the CGU’s tested for impairment as at March 31, 2020 and 2019 were at risk of impairment. An analysis
of the calculation’s sensitivity to a change in the key parameters (turnover and earnings multiples), did not identify any probable scenarios
where the CGU’s recoverable amount would fall below its carrying amount.
The movement in intangible assets is given below:
Intangible assets
Customer related Marketing related Total
Gross carrying value:
As at April 1, 2019 ` 26,924 ` 5,945 ` 32,869
Translation adjustment 1,031 382 1,413
Acquisition through business combinations (Refer Note 7) 4,535 371 4,906
As at March 31, 2020 ` 32,490 ` 6,698 ` 39,188
Accumulated depreciation/ impairment:
As at April 1, 2019 ` 15,345 ` 3,762 ` 19,107
Translation adjustment 220 226 446
Amortization and impairment* 2,333 940 3,273
As at March 31, 2020 ` 17,898 ` 4,928 ` 22,826
Net carrying value as at March 31, 2020 ` 14,592 ` 1,770 ` 16,362
Gross carrying value:
As at April 1, 2018 ` 26,586 ` 6,551 ` 33,137
Translation adjustment 555 217 772
Disposal (Refer Note 22) (217) (823) (1,040)
As at March 31, 2019 ` 26,924 ` 5,945 ` 32,869
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Intangible assets
Customer related Marketing related Total
Accumulated depreciation/ impairment:
As at April 1, 2018 ` 12,263 ` 2,761 ` 15,024
Translation adjustment 35 64 99
Amortization and impairment* 3,148 1,136 4,284
Disposal (Refer Note 22) (101) (199) (300)
As at March 31, 2019 ` 15,345 ` 3,762 ` 19,107
Net carrying value as at March 31, 2019 ` 11,579 ` 2,183 ` 13,762
* includes impairment charge on certain intangible assets recognized on acquisitions, amounting to Nil and ` 838 for the year ended March
31, 2020 and 2019, respectively.
As at March 31, 2020, the estimated remaining amortization period for intangible assets acquired on acquisition are as follows:
Acquisition Estimated remaining amortization period
ATCO I-Tek 4.50 years
Cellent AG 0.75 – 2.75 years
Appirio Inc. 1.75 years
Vara Infotech Private Limited 6.50 - 9.50 years
International TechneGroup Incorporated 4.50 years
Rational Interaction, Inc. 2.75 - 6.75 years
Other entities 0.25 – 12.25 years
7. Business combination
Summary of material acquisitions during the year ended March 31, 2020 is given below:
During the year ended March 31, 2020, the Company has completed three business combinations (which both individually and in aggregate
are not material) for a total consideration of ` 10,433. These include (a) taking over customer contracts, leased facilities, assets and
employees of Vara Infotech Private Limited, (b) the acquisition of International TechneGroup Incorporated, a global digital engineering and
manufacturing solutions company and (c) the acquisition of Rational Interaction, Inc, a digital customer experience management company.
Purchase price
Description
allocated
Net assets ` 907
Customer related intangibles 4,535
Marketing related intangibles 371
Deferred tax liabilities on intangible assets (213)
Total ` 5,600
Goodwill 4,833
Total purchase price 10,433
Net assets acquired include ` 317 of cash and cash equivalents and trade receivable valued at ` 831.
The goodwill of ` 4,833 comprises value of acquired workforce and expected synergies arising from the business combinations. The
goodwill was allocated to IT Services segment and is partially deductible for income tax purpose in India and United States.
The pro-forma effects of these business combinations on the Company’s results were not material.
Summary of material acquisitions during the year ended March 31, 2018 is given below:
During the year ended March 31, 2018, the Company has completed four business combinations (which both individually and in aggregate
are not material) for a total consideration of ` 6,924. These transactions include (a) the acquisition of IT service provider which is focused on
Brazilian markets, (b) the acquisition of a design and business strategy consultancy firm based in the United States, and (c) the acquisition
of intangible assets, assembled workforce and a multi-year service agreement which qualify as business combination.
The following table presents the provisional allocation of purchase price:
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Wipro Limited
Purchase price
Description
allocated
Net assets ` 5
Customer related intangibles 5,565
Other intangible assets 169
Total ` 5,739
Goodwill 1,185
Total purchase price ` 6,924
The goodwill of ` 1,185 comprises value of acquired workforce and expected synergies arising from the acquisition. The goodwill was
allocated to IT Services segment and is partially deductible for United States federal income tax purpose.
Net assets acquired include ` 58 of cash and cash equivalents and trade receivables valued at ` 215.
8. Investments
As at
March 31, 2020 March 31, 2019
Non-current
Financial instruments measured at FVTOCI
Equity instruments - unquoted (Refer Note 8.1) ` 9,297 ` 6,916
Financial instruments at amortized cost
Inter corporate and term deposits - unquoted * 5 -
` 9,302 ` 6,916
Aggregate amount of unquoted investments ` 9,302 ` 6,916
Current
As at
March 31, 2020 March 31, 2019
Financial instruments measured at FVTOCI
Commercial papers, Certificate of deposits and bonds - unquoted (Refer Note 8.3) ` 20,126 ` 43,030
Non-convertible debentures, government securities and commercial papers -
135,461 142,018
quoted (Refer Note 8.4)
Financial instruments at amortized cost
Inter corporate and term deposits -unquoted * 19,253 21,708
Financial instruments measured at FVTPL
Investments in liquid and short-term mutual funds - unquoted (Refer Note 8.2) 14,795 13,960
` 189,635 ` 220,716
Aggregate amount of quoted investments and aggregate market value thereof ` 135,461 ` 142,018
Aggregate amount of unquoted investments ` 54,174 ` 78,698
* These deposits earn a fixed rate of interest. Term deposits include non-current and current deposits in lien with banks primarily on
account of term deposits held as margin money deposits against guarantees amounting to ` 5 and ` 796, respectively (March 31, 2019:
Term Deposits current of ` 463).
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Details of investments:
8.2 Investments in liquid and short-term mutual funds - unquoted – classified as FVTPL
Number of Units Carrying value
Particulars As at As at
March 31, 2020 March 31, 2019 March 31, 2020 March 31, 2019
Current
HDFC Arbitrage Fund - Wholesale Plan - Monthly
- 200,321,433 ` - ` 2,097
Dividend- Direct Plan
HDFC Arbitrage Fund - Wholesale Plan - Growth 141,089,753 - 2,100 -
Kotak Equity Arbitrage Fund - Direct Plan - Growth 67,906,978 - 1,974 -
SBI Overnight Fund Direct Plan Growth 496,725 388,332 1,616 1,201
IDFC Arbitrage Fund - Growth - Direct Plan 48,133,290 - 1,241 -
ICICI Prudential Equity Arbitrage Fund - Direct Plan
45,551,909 - 1,229 -
- Growth
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Wipro Limited
Number of Units Carrying value
Particulars As at As at
March 31, 2020 March 31, 2019 March 31, 2020 March 31, 2019
UTI Overnight Fund Direct Plan Growth 407,120 462,995 1,113 1,203
UTI Arbitrage Fund-Growth Plan 36,445,590 - 996 -
L&T Cash Fund Direct Plan Growth 460,742 168,996 718 250
Axis Overnight Fund 590,406 389,144 623 390
DSP Overnight Fund Direct Plan Growth 488,697 345,742 522 351
HSBC Overnight Fund 479,479 - 500 -
Invesco India Overnight Fund 495,317 - 500 -
ICICI Prudential Overnight Fund Direct Growth 4,526,064 5,864,741 488 600
HDFC Overnight Fund Direct Plan Growth 145,665 70,899 432 200
ABSL Overnight Fund Direct Plan Growth 231,342 1,771,126 250 1,818
Sundaram Overnight Fund 228,041 - 242 -
Tata Overnight Fund 107,199 250,125 113 250
IDFC Overnight Fund 67,569 594,622 72 602
Kotak Overnight Fund 62,144 691,520 66 700
IDFC Arbitrage Fund – Monthly Dividend- Direct Plan - 88,833,898 - 1,168
ICICI Prudential Equity Arbitrage Fund - Direct Plan
- 79,919,884 - 1,158
- Dividend
Kotak Equity Arbitrage - Direct - Fortnight Dividend - 83,782,796 - 1,972
Religare Ultra Short Term Fund - Institutional Growth - 15 - ^
Reliance Interval Fund - Monthly Series I - IP - Dividend - 15 - ^
` 14,795 ` 13,960
^ Value is less than ` 1
8.3 Investment in certificate of deposits/ commercial papers and bonds (unquoted)– classified as FVTOCI
As at
Particulars of issuer
March 31, 2020 March 31, 2019
Current
ICICI Bank ` 957 ` 11,311
Axis Bank 9,139 4,309
National Bank for Agriculture and Rural Development 8,833 1,000
Small Industries Development Bank of India 1,197 4,302
Kotak Mahindra Bank - 9,362
Kotak Mahindra Investments Limited - 2,864
Kotak Mahindra Prime Limited - 2,585
Aditya Birla Finance Limited - 1,988
Tata Capital Housing Finance Limited - 1,881
Tata Capital Financial Services Limited - 1,499
HDFC Bank Limited - 992
HDB Financial Services Limited - 937
Total ` 20,126 ` 43,030
8.4 Investment in non-convertible debentures, government securities and commercial papers (quoted) – classified as FVTOCI
As at
Particulars of issuer
March 31, 2020 March 31, 2019
Current
National Highways Authority of India ` 18,802 ` 18,055
Rural Electrification Corporation Limited 14,114 4,929
HDB Financial Services Limited 13,633 13,038
Government Securities 12,978 6,862
Power Finance Corporation Limited 12,248 13,169
Kotak Mahindra Prime Limited 12,090 10,855
Tata Capital Financial Services Limited 12,000 13,708
Small Industries Development Bank of India 8,914 4,912
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As at
March 31, 2020 March 31, 2019
Kotak Mahindra Investments Limited 8,283 5,238
Housing Development Finance Corporation Limited 5,692 7,151
Indian Railway Finance Corporation Limited 4,857 4,473
National Bank for Agriculture and Rural Development 4,574 13,460
Aditya Birla Finance Limited 1,882 11,596
Axis Bank 1,823 517
NTPC Limited 1,679 417
Tata Capital Housing Finance Limited 1,273 5,765
HDFC Bank Limited 614 462
ANZ Bank 5 3
LIC Housing Finance Limited - 7,408
Total ` 135,461 ` 142,018
9. Financial instruments
Financial assets and liabilities (carrying value / fair value)
As at
March 31, 2020 March 31, 2019
Assets:
Cash and cash equivalents ` 144,499 ` 158,529
Investments
Financial instruments at FVTPL 14,795 13,960
Financial instruments at FVTOCI 164,884 191,964
Financial instruments at Amortized cost 19,258 21,708
Other financial assets
Trade receivables 110,523 104,862
Unbilled receivables 25,209 22,880
Other assets 14,495 19,757
Derivative assets 3,025 5,104
` 496,688 ` 538,764
Liabilities:
Trade payables and other payables
Trade payables ` 58,400 ` 62,660
Lease liabilities 19,198 -
Other financial liabilities 20,779 26,288
Borrowings * 78,042 99,467
Derivative liabilities 7,369 1,310
` 183,788 ` 189,725
* Includes current obligation under borrowings classified under “Other current financial liabilities”
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Wipro Limited
For the financial assets and liabilities subject to offsetting or similar arrangements, each agreement between the Company and the
counterparty allows for net settlement of the relevant financial assets and liabilities when both elect to settle on a net basis. In the
absence of such an election, financial assets and liabilities will be settled on a gross basis and hence are not offset.
Fair value
Financial assets and liabilities include cash and cash equivalents, trade receivables, unbilled receivables, finance lease receivables,
employee and other advances, eligible current and non-current assets, borrowings, trade payables, eligible current liabilities and non-
current liabilities.
The fair value of cash and cash equivalents, trade receivables, unbilled receivables, borrowings, trade payables, other current financial
assets and liabilities approximate their carrying amount largely due to the short-term nature of these instruments. The Company’s long-
term debt has been contracted at market rates of interest. Accordingly, the carrying value of such long-term debt approximates fair value.
Further, finance lease receivables are periodically evaluated based on individual credit worthiness of customers. Based on this evaluation,
the Company records allowance for estimated losses on these receivables. As at March 31, 2020 and 2019, the carrying value of such
receivables, net of allowances approximates the fair value.
Investments in liquid and short-term mutual funds, which are classified as FVTPL are measured using net asset values at the reporting
date multiplied by the quantity held. Fair value of investments in commercial papers, certificate of deposits and bonds classified as FVTOCI
is determined based on the indicative quotes of price and yields prevailing in the market at the reporting date. Fair value of investments in
equity instruments classified as FVTOCI is determined using market and income approaches.
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.
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).
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, 2020 As at March 31, 2019
Particulars Fair value measurements at reporting date Fair value measurements at reporting date
Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3
Assets
Derivative instruments:
Cash flow hedges ` 1,382 ` - ` 1,382 ` - ` 3,149 ` - ` 3,149 ` -
Others 1,643 - 1,643 - 1,955 - 1,955 -
Investments:
Investment in liquid and
14,795 14,795 - - 13,960 13,960 - -
short-term mutual funds
Investment in equity
9,297 - 119 9,178 6,916 - 248 6,668
instruments
Commercial paper,
Certificate of deposits and 155,587 12,983 142,604 - 185,048 6,865 178,183 -
bonds
Liabilities
Derivative instruments:
Cash flow hedges ` (4,057) ` - ` (4,057) ` - ` (130) ` - ` (130) ` -
Others (3,312) - (3,312) - (1,180) - (1,180) -
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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 counterparties,
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 at March 31, 2020, 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.
Investment in commercial papers, certificate of deposits and bonds: Fair value of these instruments is derived based on the indicative
quotes of price and yields prevailing in the market as at reporting date.
The following methods and assumptions were used to estimate the fair value of the level 3 financial instruments included in the above
table.
Investment in equity instruments: Fair value of these instruments is determined using market and income approaches.
As at March 31, 2020 and 2019, 0.5 percentage point increase/(decrease) in the unobservable inputs used in fair valuation of other Level 3
assets doesnot have a significant impact in its value.
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Wipro Limited
The following table presents the aggregate contracted principal amounts of the Company’s derivative contracts outstanding:
(in million)
As at
March 31, 2020 March 31, 2019
Notional Fair value Notional Fair value
Designated derivative instruments
Sell: Forward contracts USD 1,011 ` (2,902) USD ` 1,410
€ 121 ` 231 € - -
£ 52 ` 240 £ - -
AUD 144 ` 741 AUD 97 ` 15
Range forward option contracts USD 474 ` (1,057) USD 1,067 ` 1,149
£ 98 ` (13) £ 191 ` 68
€ 39 ` 85 € 153 ` 349
AUD - ` - AUD 56 ` 39
* USD 1,314 and USD 1,182 includes USD/PHP sell forward of 176 and 117 as at March 31, 2020 and 2019, respectively.
^ Value is less than ` 1
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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
March 31, 2020 March 31, 2019
Balance as at the beginning of the year ` 3,019 ` (143)
*Includes net gain/(loss) reclassified to revenue (March 31, 2020: ` (4,761), March 31, 2019: ` 2,585) and cost of revenues (March 31, 2020:
` 1,379, March 31, 2019: ` (498)).
of a financial instrument. The value of a financial instrument
The related hedge transactions for balance in cash flow hedging may change as a result of changes in the interest rates, foreign
reserves as at March 31, 2020 are expected to occur and be currency exchange rates and other market changes that affect
reclassified to the consolidated statement of profit and loss market risk sensitive instruments. Market risk is attributable
over a period of three years. to all market risk sensitive financial instruments including
investments, foreign currency receivables, payables and
As at March 31, 2020 and 2019, there were no significant gains borrowings.
or losses on derivative transactions or portions thereof that have
become ineffective as hedges or associated with an underlying The Company’s exposure to market risk is a function of
exposure that did not occur. investment and borrowing activities and revenue generating
activities in foreign currency. The objective of market risk
Sale of financial assets management is to avoid excessive exposure of the Company’s
earnings and equity to losses.
From time to time, in the normal course of business, the
Company transfers accounts receivables, unbilled receivables, Risk Management Procedures
net investment in finance lease receivables (financials assets)
to banks. Under the terms of the arrangements, the Company The Company manages market risk through a corporate
surrenders control over the financial assets and transfer is treasury department, which evaluates and exercises
without recourse. Accordingly, such transfers are recorded as independent control over the entire process of market risk
sale of financial assets. Gains and losses on sale of financial management. The corporate treasury department recommends
assets without recourse are recorded at the time of sale based risk management objectives and policies, which are approved
on the carrying value of the financial assets and fair value of by senior management and Audit Committee. The activities
servicing liability. The incremental impact of such transactions of this department include management of cash resources,
on our cash flow and liquidity for the year ended March 31, 2020 implementing hedging strategies for foreign currency exposures,
and 2019 is not material. borrowing strategies, and ensuring compliance with market risk
limits and policies.
In certain cases, transfer of financial assets may be with
recourse. Under arrangements with recourse, the Company Foreign currency risk
is obligated to repurchase the uncollected financial assets,
subject to limits specified in the agreement with the banks. The Company operates internationally, and a major portion of
These are reflected as part of loans and borrowings in the its business is transacted in several currencies. Consequently,
consolidated balance sheet. the Company is exposed to foreign exchange risk through
receiving payment for sales and services in the United States
Financial risk management and elsewhere and making purchases from overseas suppliers
in various foreign currencies. The exchange rate risk primarily
Market Risk
arises from foreign exchange revenue, receivables, cash
Market risk is the risk of loss of future earnings, to fair values or balances, forecasted cash flows, payables and foreign currency
to future cash flows that may result from a change in the price loans and borrowings. A significant portion of the Company’s
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Wipro Limited
revenue is in the U.S. Dollar, the United Kingdom Pound Sterling, currency.
the Euro, the Canadian Dollar and the Australian Dollar, while The Company has designated certain derivative instruments
a large portion of costs are in Indian rupees. The exchange as cash flow hedges to mitigate the foreign exchange exposure
rate between the rupee and these currencies has fluctuated of forecasted highly probable cash flows. The Company also
significantly in recent years and may continue to fluctuate in the designates foreign currency borrowings as hedge against
future. Appreciation of the rupee against these currencies can respective net investments in foreign operations.
adversely affect the Company’s results of operations.
As at March 31, 2020, a ` 1 increase in the spot exchange
The Company evaluates exchange rate exposure arising from rate of the Indian rupee with the U.S. dollar would result in
these transactions and enters into foreign currency derivative approximately ` 1,972 (consolidated statement of profit and
instruments to mitigate such exposure. The Company follows loss ` 658 and other comprehensive income ` 1,314) decrease in
established risk management policies, including the use of the fair value, and a ` 1 decrease would result in approximately
derivatives like foreign exchange forward/option contracts ` 1,912 (consolidated statement of profit and loss ` 658 and
to hedge forecasted cash flows denominated in foreign other comprehensive income ` 1,254) increase in the fair value
of foreign currency dollar denominated derivative instruments
(forward and option contracts).
The below table presents foreign currency risk from non-derivative financial instruments as at March 31, 2020 and 2019:
As at March 31, 2020
Particulars Pound Australian Canadian Other
US $ Euro Total
Sterling Dollar Dollar currencies#
Trade receivables ` 42,329 ` 8,860 ` 7,735 ` 3,044 ` 1,388 ` 4,522 ` 67,878
Unbilled receivables 11,127 1,030 2,221 784 291 1,126 16,579
Contract assets 5,517 1,559 2,850 654 146 790 11,516
Cash and cash
13,481 3,978 1,697 586 1,292 1,733 22,767
equivalents
Other assets 49,835 4,314 3,283 413 1,447 1,805 61,097
Borrowings* (36,578) - - - - - (36,578)
Lease Liabilities (3,393) (2,606) (373) (214) (16) (1,412) (8,014)
Trade payables and other
(27,457) (3,419) (3,718) (1,228) (605) (3,087) (39,514)
financial liabilities
Net assets/ (liabilities) ` 54,861 ` 13,716 ` 13,695 ` 4,039 ` 3,943 ` 5,477 ` 95,731
# Other currencies reflect currencies such as Swiss Franc, UAE Dirham, Saudi Riyal, Singapore Dollar etc.
* Includes current obligation under borrowings classified under “Other current financial liabilities”
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As at March 31, 2020 and 2019, respectively, every 1% increase/ year ended March 31, 2020 and 2019. There is no significant
decrease in the respective foreign currencies compared to concentration of credit risk.
functional currency of the Company would impact results by
approximately ` 957 and ` 457, respectively. Counterparty risk
The table below provides details regarding the remaining contractual maturities of significant financial liabilities at the reporting date. The
amounts include estimated interest payments and exclude the impact of netting agreements, if any.
As at March 31, 2020
Contractual cash flows Carrying Less than 1-2 years 2-4 years Beyond Total
value 1 year 4 years
Borrowings (1) (3) ` 78,042 ` 74,663 ` 4,761 ` 119 ` - ` 79,543
Lease Liabilities (3) 19,198 7,322 6,128 5,425 2,192 21,067
Trade payables and other financial 79,179 79,028 88 63 - 79,179
liabilities
Derivative liabilities 7,369 7,231 90 48 - 7,369
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The balanced view of liquidity and financial indebtedness is stated in the table below. This calculation of the net cash position is used by
the management for external communication with investors, analysts and rating agencies:
As at
March 31, 2020 March 31, 2019
Cash and cash equivalents ` 144,499 ` 158,529
Investments 189,635 220,716
Borrowings (1) (78,042) (99,467)
` 256,092 ` 279,778
(1)
Includes current obligation under borrowings classified under “Other current financial liabilities”
(2)
Includes current obligation under borrowings and financial leases classified under “Other current financial liabilities”
(3)
Includes future cash outflow toward estimated interest on borrowings and lease liabilities.
As at
March 31, 2020 March 31, 2019
Unsecured
Considered good ` 110,523 ` 104,862
Considered doubtful 13,937 14,824
` 124,460 ` 119,686
Less: Provision for doubtful receivables (13,937) (14,824)
` 110,523 ` 104,862
Included in the consolidated balance sheet as follows:
Non-current ` 6,049 ` 4,373
Current ` 104,474 ` 100,489
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* Amortization during the year ended March 31, 2020 and 2019 amounting to ` 1,237 and ` 934, respectively.
13. Inventories
As at
March 31, 2020 March 31, 2019
Finished goods [including goods-in-transit - ` 2 (` 1 for March 31, 2019)] ` 3 ` 3
Traded goods 1,251 3,273
Stores and spares 611 675
` 1,865 ` 3,951
Cash and cash equivalents as of March 31, 2020 and 2019 consist of the following:
As at
March 31, 2020 March 31, 2019
Balances with banks
Current accounts ` 33,840 ` 41,715
Demand deposits * 110,412 116,563
Unclaimed dividends 85 93
Cheques, drafts on hand 162 158
` 144,499 ` 158,529
* These deposits can be withdrawn by the Company at any time without prior notice and without any penalty on the principal.
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Cash and cash equivalents consist of the following for the purpose of the statement of cash flows:
As at
March 31, 2020 March 31, 2019
Cash and cash equivalents (as above) ` 144,499 ` 158,529
Bank overdrafts (395) (4)
` 144,104 ` 158,525
The Company has only one class of equity shares having a par value of ` 2 per share. Each shareholder of equity shares is entitled to one
vote per share. The Company declares and pays dividend in Indian Rupees. The final dividend proposed by the Board of Directors is subject
to shareholders approval in the ensuing Annual General Meeting.
Following is the summary of per share dividends recognized as distributions to equity shareholders:
For the year ended
March 31, 2020 March 31, 2019
Interim dividend (Board recommended the adoption of the interim dividend as the final
` 1 per share ` 1 per share
dividend)
In the event of liquidation of the Company, the equity shareholders will be entitled to receive the remaining assets of the Company, after
distribution of all preferential amounts, if any, in proportion to the number of equity shares held by the shareholders.
*4,607,772 and 2,599,183 shares have been transferred by the controlled trust to eligible employees on exercise of options during the
year ended March 31, 2020 and 2019, respectively.
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ii. Details of shareholders holding more than 5% of the total equity shares of the Company
As at March 31, 2020 As at March 31, 2019
Name of the Shareholder
No. of Shares % held No. of Shares % held
Mr. Azim Hasham Premji Partner representing
938,946,043 16.43 989,215,999 16.39
Hasham Traders
Mr. Azim Hasham Premji Partner representing
1,127,392,315 19.73 1,187,751,441 19.68
Prazim Traders
Mr. Azim Hasham Premji Partner representing Zash
Traders 1,143,118,360 20.01 1,204,319,438 19.96
Azim Premji Trust 757,398,687 13.26 797,948,834 13.22
iii. Other details of equity shares for a period of five years immediately preceding March 31, 2020
(a) 323,076,923, 343,750,000 and 40,000,000 equity shares were bought back by the Company during the year ended March 31,
2020, 2018 and 2017, respectively. Refer note 34.
(b) 1,508,469,180 and 2,433,074,327bonus shares were issued during the year ended March 31, 2019 and 2018. Refer note 34.
16. Borrowings
As at
March 31, 2020 March 31, 2019
Non-current
Secured
Obligations under finance leases * ` - ` 496
` - ` 496
Unsecured
Term loans:
Borrowings from banks ` 4,535 ` 27,666
Loans from institutions other than banks 305 206
` 4,840 ` 27,872
Total Non-current ` 4,840 ` 28,368
Current
Unsecured
Bank overdrafts ` 395 ` 4
Borrowings from Banks ** 53,624 68,041
Loans from institutions other than banks *** 1 40
Total Current ` 54,020 ` 68,085
Total Borrowings ` 58,860 ` 96,453
* Current obligations under financial leases amounting to Nil (March 31, 2019: ` 1,506) is classified under “Other current financial
liabilities”
** Current obligations under borrowings from banks amounting to ` 18,898 (March 31, 2019: ` 1,272) is classified under “Other current
financial liabilities’”
*** Current maturities of loans from institutions other than bank amounting to ` 284 (March 31, 2019: ` 236) is classified under “Other
current financial liabilities”
Short-term borrowings
The Company had loans, borrowings and bank overdrafts amounting to ` 54,020 and ` 68,085, as at March 31, 2020 and 2019, respectively.
The principal source of borrowings from banks as at March 31, 2020 primarily consists of lines of credit of approximately ` 17,960, U.S.
Dollar (U.S.$) 955 million, Canadian Dollar (CAD) 71 million, Saudi Riyal (SAR) 128 million, Euro (EUR) 19 million, Great British Pound (GBP)
7 million, Chinese Yuan (CNY) 20 million, Qatari Riyal (QAR) 10 million, Brazilian Real (BRL) 10 million, Mexican Peso (MXN) 33 million, and
Indonesian Rupiah (IDR) 13,000 million from bankers for working capital requirements and other short-term needs. As at March 31, 2020,
the Company has unutilized lines of credit aggregating ` 4,260, U.S. Dollar (U.S.$) 471 million, Canadian Dollar (CAD) 3 million, Saudi Riyal
(SAR) 128 million, Euro (EUR) 19 million, Great British Pound (GBP) 7 million, Chinese Yuan (CNY) 20 million, Qatari Riyal (QAR) 10 million,
Brazilian Real (BRL) 1 million, Mexican Peso (MXN) 33 million, and Indonesian Rupiah (IDR) 13,000 million. To utilize these unused lines of
credit, the Company requires consent of the lender and compliance with certain financial covenants. Significant portion of these lines of
credit are revolving credit facilities and floating rate foreign currency loans, renewable on a periodic basis.
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The Company has non-fund based revolving credit facilities in various currencies equivalent to ` 41,597 and ` 40,470 as of
March 31, 2020 and 2019, respectively, towards operational requirements that can be used for the issuance of letters of credit and bank
guarantees. As of March 31, 2020, and 2019, an amount of ` 22,790 and ` 22,014,respectively, was unutilized out of these non-fund based
facilities.
Non-cash changes
April 1, 2018 Cash flow Assets taken Foreign March 31, 2019
on finance exchange
lease movements
Borrowings from banks ` 119,689 ` (26,228) ` - ` 3,518 ` 96,979
Bank overdrafts 3,999 (3,995) - - 4
External commercial borrowings 9,777 (10,064) - 287 -
Obligations under finance leases (Refer Note 33) 3,973 (2,234) 14 249 2,002
Loans from other than banks 821 (352) - 13 482
` 138,259 ` (42,873) ` 14 ` 4,067 ` 99,467
Significant portion of these facilities bear floating rates of interest, referenced to LIBOR or other similar country specific official benchmark
interest rates and a spread, determined based on market conditions.
The terms of the other secured and unsecured loans and borrowings also contain certain restrictive covenants primarily requiring the
Company to maintain certain financial ratios. As at March 31, 2020 and 2019, the Company has met all the covenants under these
arrangements.
Obligations under finance leases amounting to ` 2,002 as at March 31, 2019 were secured by underlying property, plant and equipment.
Interest expense on borrowings was ` 3,166 and ` 4,058 for the Year ended March 31, 2020 and 2019, respectively.
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18. Provisions
As at
March 31, 2020 March 31, 2019
Non-current:
Employee benefits obligations ` 3,766 ` 2,082
Provision for warranty 2 2
` 3,768 ` 2,084
Current:
Employee benefits obligations ` 12,358 ` 10,065
Provision for warranty 316 275
Others 689 717
` 13,363 ` 11,057
Total ` 17,131 ` 13,141
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 indirect tax related
contingencies and litigations. The timing of cash outflows in respect of such provision cannot be reasonably determined.
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Wipro Limited
19. Other liabilities
As at
March 31, 2020 March 31, 2019
Non-current:
Others ` 3,771 ` 3,176
` 3,771 ` 3,176
Current:
Statutory and other liabilities ` 4,919 ` 5,430
Advance from customers 1,464 1,361
Others 120 836
` 6,503 ` 7,627
Total ` 10,274 ` 10,803
A. Contract Assets and Liabilities to consideration from customers in an amount that corresponds
The Company classifies its right to consideration in exchange for directly with the value to the customer of the Company’s
deliverables as either a receivable or a contract asset. performance completed to date, which are contracts invoiced on
time and material basis and volume based.
A receivable is a right to consideration that is unconditional.
A right to consideration is unconditional if only the passage of As at March 31, 2020, the aggregate amount of transaction
time is required before payment of that consideration is due. price allocated to remaining performance obligations, other
For example, the Company recognizes a receivable for revenues than those meeting the exclusion criteria above, was ` 360,033
related to time and materials contracts or volume-based of which approximately 62% is expected to be recognized as
contracts. The Company present such receivables as part of revenues within two years, and the remainder thereafter. This
unbilled receivables at their net estimated realizable value. includes contracts with a substantive enforceable termination
penalty if the contract is terminated without cause by the
Contract assets: During the year ended March 31, 2020, customer, based on an overall assessment of the contract
` 13,068 of contract assets pertaining to fixed-price development carried out at the time of inception. Historically, customers have
contracts has been reclassified to receivables on completion not terminated contracts without cause.
of milestones. During the year ended March 31, 2019, ` 13,558
of unbilled revenue pertaining to fixed-price development As at March 31, 2019, the aggregate amount of transaction
contracts (balance as at April 1, 2018 of ` 17,469), has been price allocated to remaining performance obligations, other
reclassified to receivables on completion of milestones. than those meeting the exclusion criteria above, was ` 373,879
of which approximately 59% is expected to be recognized as
Contract liabilities: During the year ended March 31, 2020, the revenues within two years, and the remainder thereafter. This
Company recognized revenue of ` 21,193 arising from contract includes contracts with a substantive enforceable termination
liabilities as at March 31, 2019. During the year ended March 31, penalty if the contract is terminated without cause by the
2019, the Company recognized revenue of ` 14,570 arising from customer, based on an overall assessment of the contract
opening unearned revenue as at April 1, 2018. carried out at the time of inception. Historically, customers have
not terminated contracts without cause.
Contract assets and liabilities are reported in a net position on a
contract by contract basis at the end of each reporting period. C. Disaggregation of Revenues
B. Remaining Performance Obligations The tables below present disaggregated revenues from
contracts with customers by business segment, customer
Revenue allocated to remaining performance obligations location and contract-type. The Company believes that the
represents contracted revenue that has not yet been recognized, below disaggregation best depicts the nature, amount, timing
which includes contract liabilities and amounts that will be and uncertainty of revenue and cash flows from economic
invoiced and recognized as revenue in future periods. Applying factors
the practical expedient, the Company has not disclosed its right
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Annual Report 2019-20
Information on disaggregation of revenues for the year ended March 31, 2020 is as follows:
IT Services
IT Products ISRE Total
BFSI Health BU CBU ENU TECH MFG COMM Total
A. Revenue
Rendering of services `183,368 `77,794 `96,509 ` 75,958 ` 75,446 ` 47,859 ` 33,655 ` 590,589 `- ` 7,961 ` 598,550
Sales of products - - - - - - - - 11,682 - 11,682
` 183,368 ` 77,794 ` 96,509 ` 75,958 ` 75,446 ` 47,859 ` 33,655 ` 590,589 ` 11,682 ` 7,961 ` 610,232
B. Revenue by geography
India ` 5,241 ` 2,522 ` 1,025 ` 1,832 ` 942 ` 1,908 ` 2,109 ` 15,579 ` 6,675 ` 7,961 ` 30,215
Americas 107,467 60,245 67,988 24,315 57,092 23,327 9,075 349,509 918 - 350,427
Europe 45,067 7,540 17,275 31,090 14,107 18,547 8,056 141,682 2,390 - 144,072
Rest of the World 25,593 7,487 10,221 18,721 3,305 4,077 14,415 83,819 1,699 - 85,518
` 183,368 ` 77,794 ` 96,509 ` 75,958 ` 75,446 ` 47,859 ` 33,655 ` 590,589 ` 11,682 ` 7,961 ` 610,232
C. Revenue by nature of contract
Fixed price and volume based ` 101,875 ` 49,951 ` 53,575 ` 52,084 ` 49,733 ` 33,793 ` 21,908 ` 362,919 `- ` 6,415 ` 369,334
Time and materials 81,493 27,843 42,934 23,874 25,713 14,066 11,747 227,670 - 1,546 229,216
Products - - - - - - - - 11,682 - 11,682
` 183,368 ` 77,794 ` 96,509 ` 75,958 ` 75,446 ` 47,859 ` 33,655 ` 590,589 ` 11,682 ` 7,961 ` 610,232
Information on disaggregation of revenues for the year ended March 31, 2019 is as follows:
IT Services
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Corporate Overview |
A. Revenue
Rendering of services ` 173,516 ` 73,942 ` 88,797 ` 72,329 ` 76,108 ` 46,155 ` 32,489 ` 563,336 `- ` 7,965 ` 571,301
Sales of products - - - - - - - - 14,544 - 14,544
` 173,516 ` 73,942 ` 88,797 ` 72,329 ` 76,108 ` 46,155 ` 32,489 ` 563,336 ` 14,544 ` 7,965 ` 585,845
B. Revenue by geography
India ` 3,868 ` 2,295 ` 1,006 ` 1,690 ` 1,392 ` 1,534 ` 3,095 ` 14,880 ` 8,154 ` 7,965 ` 30,999
Americas 98,428 57,204 59,262 22,739 54,679 21,541 7,694 321,547 2,112 - 323,659
Europe 46,856 7,591 17,636 29,795 16,441 18,211 7,420 143,950 2,240 - 146,190
Rest of the World 24,364 6,852 10,893 18,105 3,596 4,869 14,280 82,959 2,038 - 84,997
` 173,516 ` 73,942 ` 88,797 ` 72,329 ` 76,108 ` 46,155 ` 32,489 ` 563,336 ` 14,544 ` 7,965 ` 585,845
Management & Board Reports |
Wipro Limited
22. Other operating income
During the year ended March 31, 2020, the Company concluded the sale of assets pertaining to Workday business and Cornerstone
On Demand business in Portugal, France and Sweden. A gain of ` 152 arising from such transaction has been recognized under other
operating income.
During the year ended March 31, 2020, the Company has partially met the first year and second year business targets pertaining to sale of
data center business concluded during the year ended March 31, 2019. Change in fair value of the callable units pertaining to achievement
of the business targets amounting to ` 992 for the year ended March 31, 2020 respectively, has been recognized under other operating
income.
Sale of hosted data center services business: During the year ended March 31, 2019, the Company has concluded the divestment of its
hosted data center services business.
In accordance with the sale agreement, total cash consideration is ` 28,124 and the Company paid ` 3,766 to subscribe for units issued
by the buyer. Units amounting to ` 2,032 are callable by the buyer if certain business targets committed by the Company are not met over
a period of three years. The fair value of these callable units is estimated to be insignificant as at reporting date. Consequently, the sale
consideration comprises cash consideration of ` 24,358 and units issued by the buyer amounting to ` 1,734.
Loss of control in subsidiary: During the year ended March 31, 2019, the Company has reduced its equity holding from 74% to 11% in
Wipro Airport IT Services Limited. The loss/ gain on this transaction is insignificant.
The assets and liabilities associated with these transactions were classified as assets held for sale and liabilities directly associated with
assets held for sale amounting to ` 27,201 and ` 6,212 respectively as at March 31, 2018.
Sale of Workday business and Cornerstone On Demand business: During the year ended March 31, 2019, the Company has concluded the
Sale of Workday business and Cornerstone On Demand business except in Portugal, France and Sweden.
Assets pertaining to Portugal, France, and Sweden are expected to conclude in the quarter ending June 30, 2019, subject to obtaining
regulatory approvals are classified as assets held for sale amounting to ` 240 as at March 31, 2019.
These disposal groups do not constitute a major component of the Company and hence were not classified as discontinued operations.
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Remeasurements of the net defined benefit liability /(asset) recognized in other comprehensive income include:
Year ended
March 31, 2020 March 31, 2019
Remeasurement of net defined benefit liability/(asset)
Return on plan assets excluding interest income - (gain)/loss ` 76 ` (49)
Actuarial (gain)/loss arising from financial assumptions 749 73
Actuarial (gain)/loss arising from demographic assumptions 227 (40)
Actuarial (gain)/loss arising from experience adjustments 194 (266)
` 1,246 ` (282)
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Wipro Limited
b) Defined benefit plans
Defined benefit plans include gratuity for employees drawing salary in Indian rupees and certain benefits plans in foreign jurisdictions.
Amount recognized in the consolidated statement of profit and loss in respect of defined benefit plans is as follows:
Year ended
March 31, 2020 March 31, 2019
Current service cost ` 1,782 ` 1,434
Net interest on net defined benefit liability/(asset) 63 25
Net gratuity cost ` 1,845 ` 1,459
Actual return on plan assets ` 513 ` 607
As at March 31, 2020 and 2019, plan assets were primarily invested in insurer managed funds.
The Company has established an income tax approved irrevocable trust fund to which it regularly contributes to finance the liabilities
of the gratuity plan. The fund’s investments are managed by certain insurance companies as per the mandate provided to them by the
trustees and the asset allocation is within the permissible limits prescribed in the insurance regulations.
The principal assumptions used for the purpose of actuarial valuation of these defined benefit plans are as follows:
As at
March 31, 2020 March 31, 2019
Discount rate 5.05% 6.05%
Expected return on plan assets 5.05% 6.05%
Expected rate of salary increase 6.60% 6.80%
Duration of defined benefit obligations 9 years 8 years
The expected return on plan assets is based on expectation of the average long-term rate of return expected on investments of the fund
during the estimated term of the obligations.
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The discount rate is primarily based on the prevailing market yields of government securities for the estimated term of the obligations. The
estimates of future salary increase considered takes into account the inflation, seniority, promotion and other relevant factors. Attrition
rate considered is the management’s estimate, based on previous years’ employee turnover of the Company.
The expected future contribution and estimated future benefit payments from the fund are as follows:
Expected contribution to the fund during the year ending March 31, 2020 ` 3,035
Estimated benefit payments from the fund for the year ending March 31:
2021 ` 1,740
2022 1,343
2023 1,295
2024 1,261
2025 1,226
Thereafter 13,819
Total ` 20,684
The expected benefits are based on the same assumptions used to measure the Company’s benefit obligations as of March 31, 2020.
Sensitivity for significant actuarial assumptions is computed to show the movement in defined benefit obligation by 0.5 percentage.
As of March 31, 2020, every 0.5 percentage point increase/ (decrease) in discount rate will result in (decrease)/increase of defined benefit
obligation by approximately ` (626) and ` 584 respectively (March 31, 2019: ` (405) and ` 435 respectively).
As of March 31, 2020, every 0.5 percentage point increase/ (decrease) in expected rate of salary will result in increase/ (decrease) of
defined benefit obligation by approximately ` 353 and ` (329) respectively (March 31, 2019: ` 245 and ` (229) respectively).
c) Provident fund:
The details of fund and plan assets are given below:
As at
March 31, 2020 March 31, 2019
Fair value of plan assets ` 61,397 ` 53,015
Present value of defined benefit obligation (61,397) (53,015)
Net (shortfall)/ excess ` - ` -
The plan assets have been primarily invested in government securities and corporate bonds.
The principal assumptions used in determining the present value obligation of interest guarantee under the deterministic approach are
as follows:
As at
March 31, 2020 March 31, 2019
Discount rate for the term of the obligation 6.05% 7.00%
Average remaining tenure of investment portfolio 7 years 8 years
Average guaranteed rate of return 8.50% 8.65%
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28. Income tax
Income tax expense has been allocated as follows:
Year ended
March 31, 2020 March 31, 2019
Income tax expense as per the consolidated statement of profit and loss ` 24,801 ` 25,243
Income tax included in other comprehensive income on:
Unrealized losses on investment securities (230) (65)
Gains/(losses) on cash flow hedging derivatives (1,165) 633
Defined benefit plan actuarial gains/(losses) (196) 47
Total income taxes ` 23,210 ` 25,858
The reconciliation between the provision of income tax and amounts computed by applying the Indian statutory income tax rate to profit
before tax is as follows:
Year ended
March 31, 2020 March 31, 2019
Profit before tax ` 122,519 ` 115,422
Enacted income tax rate in India 34.94% 34.94%
Computed expected tax expense 42,808 40,328
Effect of:
Income exempt from tax (12,930) (18,469)
Basis differences that will reverse during a tax holiday period 480 (796)
Income taxed at higher/ (lower) rates (3,122) (1,002)
Income taxes related to prior years (116) (2,267)
Changes in unrecognized deferred tax assets (3,898) 3,972
Expenses disallowed for tax purpose 1,785 3,503
Others, net (206) (26)
Total income taxes expenses ` 24,801 ` 25,243
Effective tax rate 20.24% 21.87%
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As at
March 31, 2020 March 31, 2019
Property, plant and equipment (654) (1,807)
Amortizable goodwill (2,166) (1,899)
Intangible assets (1,541) (2,295)
Interest Income and fair value movement of investment (626) (1,455)
Cash flow hedges - (604)
Contract liabilities (11) (289)
SEZ re-investment reserve (6,614) (1,132)
Others (121) -
` (11,733) ` (9,481)
Net deferred tax assets ` 3,212 ` 2,220
* Includes deferred tax asset recognized on carry-forward losses pertaining to business combinations.
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Wipro Limited
Deferred taxes on unrealized foreign exchange gain / loss relating The Company has calculated its tax liability for current domestic
to cash flow hedges, fair value movements in investments and taxes after considering MAT. The excess tax paid under MAT
actuarial gains/losses on defined benefit plans are recognized provisions over and above normal tax liability can be carried
in other comprehensive income. Deferred tax liability on forward and set-off against future tax liabilities computed
the intangible assets identified and carry forward losses on under normal tax provisions. The Company was required to pay
acquisitions is recorded by an adjustment to goodwill. Other MAT and accordingly, a deferred tax asset of ` 3,425 and Nil has
than these, the change in deferred tax assets and liabilities is been recognized in the consolidated balance sheet as at March
primarily recorded in the consolidated statement of profit and 31, 2020 and 2019, respectively.
loss.
A substantial portion of the profits of the Company’s India
In assessing the realizability of deferred tax assets, the Company operations are exempt from Indian income taxes being profits
considers the extent to which it is probable that the deferred attributable to export operations and profits from units
tax asset will be realized. The ultimate realization of deferred established under the Special Economic Zone Act, 2005 scheme.
tax assets is dependent upon the generation of future taxable Units designated in special economic zones providing service on
profits during the periods in which those temporary differences or after April 1, 2005 will be eligible for a deduction of 100 percent
and tax loss carry-forwards become deductible. The Company of profits or gains derived from the export of services for the first
considers the expected reversal of deferred tax liabilities, five years from commencement of provision of services and 50
projected future taxable income and tax planning strategies in percent of such profits and gains for a further five years. Certain
making this assessment. Based on this, the Company believes tax benefits are also available for a further five years subject to
that it is probable that the Company will realize the benefits of the unit meeting defined conditions. Profits from certain other
these deductible differences. The amount of deferred tax asset undertakings are also eligible for preferential tax treatment.
considered realizable, however, could be reduced in the near The tax holiday period being currently available to the Company
term if the estimates of future taxable income during the carry- expires in various years through fiscal 2033-34. The expiration
forward period are reduced. period of tax holiday for each unit within a SEZ is determined
based on the number of years that have lapsed following year
Deferred tax asset amounting to ` 8,124 and ` 6,769 as at March of commencement of production by that unit. The impact of tax
31, 2020 and 2019, respectively in respect of unused tax losses holidays has resulted in a decrease of current tax expense of
have not been recognized by the Company. The tax loss carry- ` 11,963 and ` 15,390 for the years ended March 31, 2020 and
forwards of ` 29,736 and ` 24,355 as at March 31, 2020 and 2019, 2019, respectively, compared to the effective tax amounts that
respectively, relates to certain subsidiaries on which deferred we estimate the Company would have been required to pay if
tax asset has not been recognized by the Company, because these incentives had not been available. The per share effect
there is a lack of reasonable certainty that these subsidiaries of these tax incentives for the years ended March 31, 2020 and
may generate future taxable profits. Approximately, ` 14,429 and 2019 was ` 2.05 and ` 2.56, respectively.
` 8,191 as at March 31, 2020 and 2019, respectively, of these tax
loss carry-forwards is not currently subject to expiration dates. Deferred income tax liabilities are recognized for all taxable
The remaining tax loss carry-forwards of approximately ` 15,307 temporary differences except in respect of taxable temporary
and ` 16,164 as at March 31, 2020 and 2019, respectively, differences associated with investments in subsidiaries where
expires in various years through fiscal 2038. the timing of the reversal of the temporary difference can be
controlled and it is probable that the temporary difference will
The Company has recognized deferred tax assets of ` 2,044 and not reverse in the foreseeable future. Accordingly, deferred
` 3,149 primarily in respect of carry forward losses of its various income tax liabilities on cumulative earnings of subsidiaries
subsidiaries as at March 31, 2020 and 2019, respectively. amounting to ` 56,391 and ` 52,488 as at March 31, 2020 and
Management’s projections of future taxable income and tax 2019, respectively and branch profit tax @ 15% of the US branch
planning strategies support the assumption that it is probable profit have not been recognized. Further, it is not practicable to
that sufficient taxable income will be available to utilize these estimate the amount of the unrecognized deferred tax liabilities
deferred tax assets. for these undistributed earnings.
Translation difference related to foreign operations, net ` 7,933 ` 2,906
Reclassification of foreign currency translation differences to profit and loss on sale of
- (4,131)
hosted data center services business
Reclassification of foreign currency translation differences to profit and loss on sale of
- (79)
Workday business and Cornerstone OnDemand business
Change in effective portion of hedges of net investment in foreign operations - (287)
Total change during the year ` 7,933 ` (1,591)
Balance at the end of the year ` 21,981 ` 14,048
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Annual Report 2019-20
Corporate Overview | Management & Board Reports | Financial Statements
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 year, excluding equity shares purchased by the Company and held as treasury
shares.
Year ended
March 31, 2020 March 31, 2019
Profit attributable to equity holders of the Company ` 97,223 ` 90,037
Weighted average number of equity shares outstanding 5,833,384,018 6,007,376,837
Basic earnings per share ` 16.67 ` 14.99
Diluted: Diluted earnings per share is calculated by adjusting the weighted average number of equity shares outstanding during the year
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 year). 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.
Year ended
March 31, 2020 March 31, 2019
Profit attributable to equity holders of the Company ` 97,223 ` 90,037
Weighted average number of equity shares outstanding 5,833,384,018 6,007,376,837
Effect of dilutive equivalent share options 14,439,221 14,927,530
Weighted average number of equity shares for diluted earnings per share 5,847,823,239 6,022,304,367
Diluted earnings per share ` 16.63 ` 14.95
The stock compensation expense recognized for employee services received during the Year ended March 31, 2020 and 2019 were ` 1,262
and ` 1,938, respectively.
In 1984, the Company established a controlled trust called the Wipro Equity Reward Trust (“WERT”). In the earlier years, WERT purchased
shares of the Company out of funds borrowed from the Company. The Company’s Board Governance, Nomination and Compensation
Committee recommends to WERT certain officers and key employees, to whom WERT issues shares from its holdings at nominal price
subject to vesting conditions. WERT held22,746,081and 27,353,853treasury shares as atMarch 31, 2020 and 2019, respectively.
Wipro Employee Stock Option Plans and Restricted Stock Unit Option Plans
A summary of the general terms of grants under stock option plans and restricted stock unit option plans are as follows:
Number of Options Range of Exercise
Name of Plan
reserved under the plan Price
Wipro ADS Restricted Stock Unit Plan (WARSUP 2004 plan) * 59,797,979 US $ 0.03
Wipro Employee Restricted Stock Unit Plan 2005 (WSRUP 2005 plan) * 59,797,979 `2
Wipro Employee Restricted Stock Unit Plan 2007 (WSRUP 2007 plan) * 49,831,651 `2
Wipro Equity Reward Trust Employee Stock Purchase Plan, 2013 ** 39,546,197 `2
Wipro Employee Stock Option plan 2000 (2000 plan) *** 747,474,747 ` 171 - 490
Employees covered under Stock Option Plans and Restricted Stock Unit (RSU) Option Plans (collectively “Stock Option Plans”) are granted
an option to purchase shares of the Company at the respective exercise prices, subject to requirements of vesting conditions. These
options generally vest in tranches over a period of two to four years from the date of grant. Upon vesting, the employees can acquire one
equity share for every option.
* The maximum contractual term for these Stock Option Plans and RSU Option Plans isperpetual until the options are available for grant under
the plan.
** The maximum contractual term for these Stock Option Plans isup to May 29, 2023, until the options are available for grant under the plan.
*** The maximum contractual term for these Stock Option Plans isup to July 26, 2020, until the options are available for grant under the plan.
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Wipro Limited
The activity in these stock option plans is summarized below:
Year ended
Range of exercise March 31, 2020 March 31, 2019
Particulars
price Weighted Average Weighted Average
Number Number
Exercise Price Exercise Price
` 2 17,607,463 ` 2 13,543,997 ` 2
Outstanding at the beginning of the year
US $ 0.03 14,446,790 US $ 0.03 10,199,054 US $ 0.03
Bonus on outstanding ` 2 - ` 2 4,773,755 ` 2
(Refer Note 34) US $ 0.03 - US $ 0.03 3,957,434 US $ 0.03
` 2 5,662,500 ` 2 4,607,000 ` 2
Granted*
US $ 0.03 5,341,000 US $ 0.03 4,849,000 US $ 0.03
` 2 (4,610,572) ` 2 (2,739,097) ` 2
Exercised
US $ 0.03 (2,496,125) US $ 0.03 (1,541,803) US $ 0.03
` 2 - ` 2 - -
Modification to Cash Settled RSU’s **
US $ 0.03 (5,681,966) US $ 0.03 - -
` 2 (3,065,201) ` 2 (2,578,192) ` 2
Forfeited and expired
US $ 0.03 (3,755,159) US $ 0.03 (3,016,895) US $ 0.03
` 2 15,594,190 ` 2 17,607,463 ` 2
Outstanding at the end of the year
US $ 0.03 7,854,540 US $ 0.03 14,446,790 US $ 0.03
` 2 1,502,957 ` 2 1,300,781 ` 2
Exercisable at the end of the year
US $ 0.03 1,212,560 US $ 0.03 948,877 US $ 0.03
As at March 31, 2020, 4,721,388 units (net of units that were exercised or Lapsed and Forfeited) of Cash Settled RSUs were outstanding
which include 63,999 exercisable units. The carrying value of liability towards Cash Settled RSU’s outstanding was ` 496 which includes
` 15 towards exercisable units as at March 31, 2020.
* Includes 2,461,500 and 1,567,000 Performance based stock options (RSU) during the year ended March 31, 2020 and 2019,respectively.
2,524,600 and 1,673,000 Performance based stock options (ADS) during the year ended March 31, 2020 and 2019,respectively. Performance
based stock options (RSU) were issued under Wipro Employee Restricted Stock Unit plan 2007 (WSRUP 2007 plan) and Performance based
stock options (ADS) were issued under Wipro ADS Restricted Stock Unit Plan (WARSUP 2004 plan).
** Restricted Stock Units arrangement that were modified during the year ended March 31, 2020
Pursuant to the Securities Exchange Board of India (SEBI) circular dated October 10, 2019 prohibiting issuance of depository receipts by
listed companies to Non-Resident Indians (NRIs), the Board Governance, Nomination and Compensation Committee in November, 2019
approved cash pay out to its NRI employees in lieu of shares and upon exercise of vested ADS RSU under the Company’s WARSUP 2004
Plan, based on prevailing market price of ADS on the date of exercise. This change was accounted for as a modification and the fair value
on the date of modification of ` 561 has been recognized as financial liability with a corresponding adjustment to equity.
The following table summarizes information about outstanding stock options and restricted stock unit option plan:
Year ended March 31,
2020 2019
Range of exercise
price Weighted Average Weighted Average
Weighted Average Weighted Average
Numbers Remaining life Numbers Remaining life
Exercise Price Exercise Price
(months) (months)
` 2 15,594,190 23 ` 2 17,607,463 24 ` 2
US $ 0.03 7,854,540 23 US $ 0.03 14,446,790 26 US $ 0.03
The weighted-average grant-date fair value of options granted during the year ended March 31, 2020 and 2019 was ` 260.65 and
` 349.81 for each option, respectively. The weighted average share price of options exercised during the year ended March 31, 2020 and
2019 was ` 267.04 and ` 325.85 for each option, respectively.
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Annual Report 2019-20
Corporate Overview | Management & Board Reports | Financial Statements
Finance leases: The following is a schedule of future minimum lease payments under finance leases, together with the present value of
minimum lease payment as at March 31, 2019:
Present value of
Minimum lease
minimum lease
payments
payments
As at
March 31, 2019
Not later than one year ` 1,555 ` 1,506
Later than one year but not later than five years 506 496
Later than five years - -
Total minimum lease payments ` 2,061 ` 2,002
Less: Amounts representing interest (59) -
Obligation under finance lease ` 2,002 ` 2,002
Included in the consolidated balance sheet as follows:
Non-current ` 496
Current ` 1,506
Operating leases: Until March 31, 2019, prior to adoption of Ind AS116, the Company had taken office, vehicles and IT equipment under
cancellable and non-cancellable operating lease agreements that were renewable on a periodic basis at the option of both the lessor and
the lessee. The operating lease agreements extended up to a maximum of fifteen years from their respective dates of inception and some
of these lease agreements had price escalation clause. Rental payments under operating leases was ` 6,490 for the year ended March
31, 2019.
Details of contractual payments under non-cancelable leases are given below:
As at
March 31, 2019
Not later than one year ` 7,006
Later than one year and not later than five years 11,106
Later than five years 1,629
Total ` 19,741
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Wipro Limited
34. Dividends, Bonus and Buyback of equity shares every 3 (three) fully paid-up equity shares held (including ADS
holders) was approved by the shareholders of the Company on
The Company declares and pays dividends in Indian rupees. February 22, 2019, through Postal Ballot /e-voting. Subsequently,
According to the Companies Act, 2013 any dividend should be on March 8, 2019, the Company allotted 1,508,469,180 equity
declared out of accumulated distributable profits. A Company shares to shareholders who held equity shares as on the record
may, before the declaration of any dividend, transfer a date of March 7, 2019 and ` 3,016 (representing par value of
percentage of its profits for that financial year as it may consider ` 2 per share) was transferred from capital redemption reserve,
appropriate to the reserves. securities premium reserve and retained earnings to the share
capital.
The cash dividends paid per equity share were ` 1 and ` 1,
during the years ended March 31, 2020 and 2019, respectively, 35. Additional capital disclosures
including an interim dividend of ` 1 and ` 1 for the year ended
March 31, 2020 and 2019, respectively. The key objective of the Company’s capital management is
to ensure that it maintains a stable capital structure with the
During the year ended March 31, 2020, the Company has focus on total equity to uphold investor, creditor, and customer
concluded the buyback of 323,076,923 equity shares as confidence and to ensure future development of its business.
approved by the Board of Directors on April 16, 2019. This has The Company’s focus is on keeping a strong total equity base
resulted in a total cash outflow of ` 105,000. In line with the to ensure independence, security, as well as a high financial
requirement of the Companies Act 2013, an amount of ` 105,000 flexibility for potential future borrowings, if required without
has been utilized from retained earnings respectively. Further, impacting the risk profile of the Company.
capital redemption reserve (included in other reserves) of ` 646
(representing the nominal value of the shares bought back) The Company’s goal is to continue to be able to return excess
has been created as an apportionment from retained earnings. liquidity to shareholders by continuing to distribute annual
Consequent to such buyback, share capital has reduced by dividends in future periods.
` 646.
The amount of future dividends/ buyback of equity shares will
During the year ended March 31, 2019,the bonus issue in the be balanced with efforts to continue to maintain an adequate
proportion of 1:3 i.e.1 (One) bonus equity share of ` 2 each for liquidity status.
The capital structure as of March 31, 2020 and 2019 was as follows:
As at
March 31, 2020 March 31, 2019 % Change
Equity attributable to the equity shareholders of the Company (A) ` 553,217 ` 564,226 (1.95)%
As percentage of total capital 85% 85%
Current borrowings* 73,202 71,099
Non-current borrowings 4,840 28,368
Lease liabilities 19,198 -
Total borrowings and lease liabilities (B) ` 97,240 ` 99,467 (2.24)%
As percentage of total capital 15% 15%
Total capital (A) + (B) ` 650,457 ` 663,693 (1.99)%
* Includes current obligations under borrowings classified under “Other current financial liabilities”
Borrowings represents 15 % and 15% of total capital as of March Contingencies and lawsuits: The Company is subject to legal
31, 2020 and 2019, respectively. The Company is not subjected proceedings and claims (including tax assessment orders/
to any externally imposed capital requirements. penalty notices) which have arisen in the ordinary course of
its business. Some of the claims involve complex issues and it
36. Commitments and contingencies is not possible to make a reasonable estimate of the expected
financial effect, if any, that will result from ultimate resolution
Capital commitments: As at March 31, 2020 and 2019 the
of such proceedings. However, the resolution of these legal
Company had committed to spend approximately ` 14,011 and
proceedings is not likely to have a material and adverse effect
` 12,443 respectively, under agreements to purchase/ construct
on the results of operations or the financial position of the
property and equipment. These amounts are net of capital
Company. The significant of such matters are discussed below.
advances paid in respect of these purchases.
Guarantees: As at March 31, 2020 and 2019, performance In March 2004, the Company received a tax demand for the year
and financial guarantees provided by banks on behalf of the ended March 31, 2001 arising primarily on account of denial
Company to the Indian Government, customers and certain of deduction under section 10A of the Income Tax Act, 1961
other agencies amount to approximately ` 18,655 and ` 18,456 in respect of profit earned by the Company’s undertaking in
respectively, as part of the bank line of credit. Software Technology Park at Bengaluru. The same issue was
repeated in the successive assessments for the years ended
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Annual Report 2019-20
Corporate Overview | Management & Board Reports | Financial Statements
March 31, 2002 to March 31, 2011 and the aggregate demand on the Company’s financial position and results of operations.
is ` 47,583 (including interest of ` 13,832). The appeals filed
against the said demand before the Appellate authorities have The contingent liability in respect of disputed demands for
been allowed in favor of the Company by the second appellate excise duty, custom duty, sales tax and other matters amounts
authority for the years up to March 31, 2008. Further appeals to ` 8,033 and ` 8,477 as of March 31, 2020 and March 31, 2019,
have been filed by the Income tax authorities before the Hon’ble respectively. However, the resolution of these disputed demands
High Court. The Hon’ble High Court has heard and disposed-off is not likely to have a material and adverse effect on the results
majority of the issues in favor of the Company up to years ended of operations or the financial position of the Company.
March 31, 2004. Department has filed a Special Leave Petition
before the Supreme Court of India for the years ended March 31, The Hon’ble Supreme Court of India, through a ruling in February
2001 to March 31, 2004. 2019, provided interpretation on the components of Salary
on which the Company and its employees are to contribute
On similar issues for years up to March 31, 2000, the Hon’ble towards Provident Fund under the Employee’s Provident Fund
High Court of Karnataka has upheld the claim of the Company Act. Based on the current evaluation, the Company believes it
under section 10A of the Income Tax Act, 1961. For the year is not probable that certain components of Salary paid by the
ended March 31, 2009, the appeals are pending before Income Company will be subject to contribution towards Provident Fund
Tax Appellate Tribunal (“ITAT”). For years ended March 31, 2010 due to the Supreme Court order. The Company will continue to
and March 31, 2011, the Dispute Resolution Panel allowed the monitor and evaluate its position based on future events and
claim of the Company under section 10A of the Income Tax Act, developments.
1961. The Income tax authorities have filed an appeal before the
Hon’ble ITAT. 37. Segment information
For the year ended March 31, 2013, the Company received the The Company is organized into the following operating segments:
final assessment order in November 2017 with a demand of IT Services, IT Products and India State Run Enterprise services
` 3,286 (including interest of ` 1,166), arising primarily on segment (“ISRE”).
account of section 10AA issues with respect to exclusion from
Export Turnover. The Company has filed an appeal before Hon’ble IT Services: The IT Services segment primarily consists of IT
ITAT, Bengaluru within the prescribed timelines. Service offerings to customers organized by industry verticals.
For the year ended March 31, 2014, the Company received the The industry verticals are as follows: Banking, Financial Services
final assessment order in September 2018 with a demand of and Insurance (“BFSI”), Health Business unit (“Health BU”),
` 1,030 (including nil interest), arising primarily on account of Consumer Business unit (“CBU”), Energy, Natural Resources &
transfer pricing issues. The Company has filed an appeal before Utilities (“ENU”), Manufacturing (“MFG”), Technology (“TECH”)
the Hon’ble ITAT, Bengaluru within the prescribed timelines. and Communications (“COMM”). Key service offerings to
customers include software application development and
For the year ended March 31, 2015, the Company received the maintenance, research and development services for hardware
final assessment order in October 2019 with an estimated and software design, business application services, analytics,
demand of ` 1,347 (including nil interest), arising primarily on consulting, infrastructure outsourcing services and business
account of capitalization of wages. The Company has filed an process services.
appeal before the Hon’ble ITAT, Bengaluru within the prescribed
timelines. IT Products: The Company is a value-added reseller of desktops,
servers, notebooks, storage products, networking solutions
For the year ended March 31, 2016, the Company received the and packaged software for leading international brands. In
draft assessment order in December 2019 with an estimated certain total outsourcing contracts of the IT Services segment,
demand of ` 704 (including nil interest), arising primarily on the Company delivers hardware, software products and other
account of capitalization of wages. The Company has filed the related deliverables. Revenue relating to the above items is
objections before the Dispute Resolution Panel (Bengaluru) reported as revenue from the sale of IT Products.
within the prescribed timelines.
ISRE:During the year ended March 31, 2019, the Company has
For the year ended March 31, 2007 to year ended March 31, 2012, organized ISRE as a separate segment, which was part of IT
the Company has received a tax demand of ` 227 (including ` 102 Services segment. This segment consists of IT Services offerings
interest) for non-deduction of tax at source on some payments. to entities or departments owned or controlled by Government
The Company has already deposited the demand under protest. of India and/ or any State Governments.
The Company received order issued by ITAT, Bengaluru rejecting
the Company’s appeal. The Company has filed an appeal against The Chairman of the Company has been identified as the Chief
the order with the Hon’ble High Court of Karnataka within the Operating Decision Maker (“CODM”) as defined by Ind AS 108,
prescribed timelines. The Company has received a favorable “Operating Segments.” The Chairman of the Company evaluates
order on this issue from the Hon’ble High Court of Karnataka for the segments based on their revenue growth and operating
the earlier years. income.
Income tax demands against the Company amounting to Assets and liabilities used in the Company’s business are not
` 77,873 and ` 66,441 are not acknowledged as debt as identified to any of the operating segments, as these are used
at March 31, 2020 and March 31, 2019, respectively. These interchangeably between segments. Management believes that
matters are pending before various Appellate Authorities and it is currently not practicable to provide segment disclosures
the management expects its position will likely be upheld on relating to total assets and liabilities since a meaningful
ultimate resolution and will not have a material adverse effect segregation of the available data is onerous.
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Wipro Limited
Information on reportable segment for the year ended March 31, 2020 is as follows:
IT Services IT Reconciling
ISRE Total
BFSI Health BU CBU ENU TECH MFG COMM Total Products Items
Revenue ` 184,457 ` 78,240 ` 97,008 ` 76,443 ` 75,895 ` 48,158 ` 33,840 ` 594,041 ` 11,010 ` 8,400 ` (50) ` 613,401
Other operating income - - - - - - - 1,144 - - 1,144
Segment Result 34,132 12,027 16,729 12,176 14,312 9,252 5,336 103,964 (282) (1,822) 156 102,016
Unallocated 2,577 - - 2,577
Information on reportable segment for the year ended March 31, 2019 is as follows:
IT Services Reconciling
IT Products ISRE Total
266
BFSI Health BU CBU ENU TECH MFG COMM Total Items
`
Revenue ` 175,262 ` 89,313 ` 72,830 ` 76,591 ` 46,496 ` 32,680 ` 568,253 ` 12,312 ` 8,544 ` (49) ` 589,060
75,081
Other operating income - - - - - - - 4,344 - - - 4,344
Segment Result 33,831 8,638 16,828 7,081 15,916 8,327 4,396 95,017 (1,047) (1,829) 290 92,431
Unallocated 3,142 - - - 3,142
Segment Result Total ` 102,503 ` (1,047) ` (1,829) ` 290 ` 99,917
Finance costs (7,375)
Finance and other income 22,923
Share of net profit /(loss) of
associates accounted for (43)
using the equity method
Profit before tax ` 115,422
Income tax expense (25,243)
Profit for the year ` 90,179
Depreciation, amortization
` 19,467
and impairment expense
Corporate Overview | Management & Board Reports | Financial Statements
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:
Year ended
March 31, 2020 March 31, 2019
India ` 30,158 ` 30,999
Americas* 352,319 325,432
Europe 144,876 147,074
Rest of the world 86,048 85,555
Total ` 613,401 ` 589,060
* Substantially related to Operations in the United States of America
No customer individually accounted for more than 10% of the revenues during the year ended March 31, 2020 and 2019.
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.
Notes:
a) “Reconciling items” includes elimination of inter-segment transactions and other corporate activities.
b) Revenue from sale of traded cloud-based licenses is reported as part of IT Services revenues
c) Revenue from sale of Company owned Intellectual Properties is reported as a part of IT Services revenues.
d) For the purpose of segment reporting, the Company has included the impact of foreign exchange gains of ` 3,169 and ` 3,215 for the
year ended March 31, 2020 and 2019, respectively, net, in revenues (which is reported as a part of ‘Other income’ in the consolidated
statement of profit and loss).
e) 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.
f) 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. 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.
g) Other Operating income of ` 1,144 and ` 4,344 for the year ended March 31, 2020 and 2019, respectively, is included as a part of IT
Services segment results. Refer Note 22.
h) Segment results for ENU industry vertical for the year ended March 31, 2019, is after considering the impact of ` 5,141 paid to
National Grid on settlement of a legal claim against the Company.
i) Segment results for Health BU industry vertical for the year ended March 31, 2019, is after considering the impact of impairment
charges on certain software platform and intangible assets recognized on acquisitions amounting to ` 2,318.
j) Segment results of IT Services segment are after recognition of share-based compensation expense ` 1,229 and ` 1,841 for the year
ended March 31, 2020 and 2019, respectively. The share-based compensation expense pertaining to other segments is not material.
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Wipro Limited
38. Related party relationship and transactions
List of subsidiaries and associates as of March 31, 2020 are provided in the table below:
Country of
Subsidiaries Subsidiaries Subsidiaries
Incorporation
Wipro, LLC USA
Wipro Gallagher Solutions, LLC USA
Opus Capital Markets Consultants, LLC USA
Wipro Promax Analytics Solutions
USA
Americas, LLC
Wipro Insurance Solutions, LLC USA
Wipro IT Services, LLC USA
HealthPlan Services, Inc. ** USA
Appirio, Inc. ** USA
Cooper Software, Inc. USA
Infocrossing, LLC USA
Wipro US Foundation USA
International TechneGroup Incorporated ** USA
Rational Interaction, Inc. ** USA
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 (UK) Limited U.K.
Designit A/S Denmark
Designit Denmark A/S Denmark
Designit Germany GmbH Germany
Designit Oslo A/S Norway
Designit Sweden AB Sweden
Designit T.L.V Ltd. Israel
Designit Tokyo Ltd. Japan
Designit Spain Digital, S.L. ** Spain
Wipro Europe Limited U.K.
Wipro UK Limited U.K.
Wipro Financial Services UK Limited U.K.
Wipro IT Services S.R.L. Romania
Wipro IT Services SE (formerly Wipro U.K.
Cyprus SE) Wipro Doha LLC # Qatar
Wipro Technologies SA DE CV Mexico
Wipro Philippines, Inc. Philippines
Wipro Holdings Hungary Korlátolt Felelosségu
Hungary
Társaság
Wipro Holdings Investment Korlátolt
Hungary
Felelosségu Társaság
Wipro Information Technology Egypt SAE Egypt
Wipro Arabia Co. Limited * Saudi Arabia
Women’s Business Park Technologies
Saudi Arabia
Limited *
Wipro Poland SP Z.O.O Poland
Wipro IT Services Poland SP Z.O.O Poland
Wipro Technologies Australia Pty Ltd Australia
Wipro Corporate Technologies Ghana Limited Ghana
Wipro Technologies South Africa (Proprietary)
South Africa
Limited
Wipro Technologies Nigeria Limited Nigeria
Wipro IT Service Ukraine, LLC Ukraine
Wipro Information Technology Netherlands BV. Netherlands
Wipro Portugal S.A. ** Portugal
Wipro Technologies Limited Russia
Wipro Technology Chile SPA Chile
Wipro Solutions Canada Limited Canada
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Corporate Overview | Management & Board Reports | Financial Statements
Country of
Subsidiaries Subsidiaries Subsidiaries
Incorporation
Wipro Information Technology Kazakhstan
Kazakhstan
LLP
Wipro Technologies W.T. Sociedad Anonima Costa Rica
Wipro Outsourcing Services (Ireland)
Ireland
Limited
Wipro Technologies VZ, C.A. Venezuela
Wipro Technologies Peru S.A.C. Peru
Wipro do Brasil Servicos de Tecnologia S.A.Brazil
Wipro do Brasil Technologia Ltda ** Brazil
Wipro Technologies SA Argentina
Wipro Technologies S.R.L. Romania
PT. WT Indonesia Indonesia
Wipro (Thailand) Co. Limited Thailand
Wipro Bahrain Limited Co. S.P.C. Bahrain
Sultanate of
Wipro Gulf LLC
Oman
Rainbow Software LLC Iraq
Wipro Networks Pte Limited Singapore
Wipro (Dalian) Limited China
Wipro Technologies SDN BHD Malaysia
Wipro Chengdu Limited China
Wipro IT Services Bangladesh Limited Bangladesh
Wipro HR Services India Private 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 Co.
Limited and 55% of the equity securities of Women’s Business Park Technologies Limited are held by Wipro Arabia Co. Limited.
# 51% of equity securities of Wipro Doha LLC are held by a local shareholder. However, the beneficial interest in these holdings is with the Company.
The Company controls ‘The Wipro SA Broad Based Ownership Scheme Trust’, ‘Wipro SA Broad Based Ownership Scheme SPV (RF) (PTY) LTD incorporated
in South Africa and Wipro Foundation in India
** Step Subsidiary details of Wipro Portugal S.A, Wipro do Brasil Technologia Ltda, Designit Spain Digital, S.L, HealthPlan Services, Inc, Appirio, Inc,
International TechneGroup Incorporated and Rational Interaction, Inc. are as follows:
Country of
Subsidiaries Subsidiaries Subsidiaries
Incorporation
Wipro Portugal S.A. Portugal
Wipro Technologies GmbH Germany
Cellent GmbH Germany
Cellent GmbH Austria
Wipro do Brasil Technologia Ltda Brazil
Wipro Do Brasil Sistemetas De Informatica Ltd Brazil
Designit Spain Digital, S.L. Spain
Designit Colombia S A S Colombia
Designit Peru SAC Peru
HealthPlan Services, Inc. USA
HealthPlan Services Insurance Agency, LLC USA
International TechneGroup Incorporated USA
International TechneGroup Ltd. U.K.
ITI Proficiency Ltd Israel
International TechneGroup S.R.L. Italy
Mech Works S.R.L. Italy
Appirio, Inc. USA
Appirio, K.K Japan
Topcoder, LLC. USA
Appirio Ltd Ireland
Appirio Ltd (UK) U.K.
Rational Interaction, Inc. USA
Rational Consulting Australia Pty Ltd Australia
Rational Interaction Limited Ireland
269
Wipro Limited
As at March 31, 2020 the Company held 43.7% interest in Drivestream Inc, 33% interest in Denim Group Limited and 33.3% in Denim Group Management,
LLC, accounted for using the equity method.
(i) Effective July 31, 2019, Mr. Rishad A. Premji was appointed as Whole-Time Director (designated as Chairman by the Board of Directors of the
Company).
(ii) Effective July 31, 2019, Mr. Abidali Z Neemuchwala was designated and appointed as Managing Director in addition to his existing
position as Chief Executive Officer. On January 31, 2020, the Company announced that Mr. Abidali Z Neemuchwala has decided to
step down from the position of Chief Executive Officer and Managing Director due to family commitments and he will continue to hold
the office of Chief Executive Officer and Managing Director, until a successor is appointed, for a smooth transition and to ensure that
business continues as usual. The Board of Directors has, at its meeting held on May 29, 2020, noted the resignation of Mr. Abidali Z.
Neemuchwala as the Chief Executive Officer and Managing Director with effect from the end of day on June 1, 2020.
(iii) On July 30, 2019, Mr. Azim H. Premji retired as Executive Chairman and Managing Director and was appointed as Non-Executive Non-Independent
Director with effect from July 31, 2019.
(iv) Mr. N. Vaghul and Dr. Ashok S. Ganguly retired as Non- Executive Director with effect from July 31, 2019.
(v) Ms. Arundhati Bhattacharya was appointed as Non-Executive Director with effect from January 1, 2019. The Board of Directors has, at
its meeting held on May 29, 2020, noted the resignation of Ms. Arundhati Bhattacharya as an Independent Director with effect from
close of business hours on June 30, 2020.
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Corporate Overview | Management & Board Reports | Financial Statements
* Post employment benefit comprising compensated absences is not disclosed as this are determined for the Company as a whole.
Benefits includes the prorated value of RSU granted to the personnel, which vest over a period of time. Other benefits include share-based
compensation ` 170 and ` 166 for the year ended March 31, 2020 and 2019, respectively.
The following are the significant related party transactions during the year ended March 31, 2020 and 2019:
Year ended
March 31, 2020 March 31, 2019
Asset purchased/ capitalized
Wipro Enterprises (P) Limited ` 741 ` 240
Sales of goods and services
Wipro Enterprises (P) Limited ` 43 ` 102
Dividend paid
Hasham Traders ` 939 ` 742
Prazim Traders 1,127 891
Zash Traders 1,143 903
Azim Premji Trust 757 618
Azim H. Premji 237 187
Buyback of shares
Hasham Traders ` 16,338 ` -
Prazim Traders 19,617 -
Zash Traders 19,890 -
Azim Premji Trust 13,179 -
Azim H. Premji 3,986 -
Rental income
Wipro Enterprises (P) Limited ` 45 ` 42
Remuneration paid to key management personnel
Azim H. Premji* ` 15 ` 18
Abidali Z Neemuchwala 323 273
Rishad A Premji 52 68
Jatin Pravinchandra Dalal 44 61
M. Sanaulla Khan 15 16
* This includes sitting fees and commission paid as non-independent and non-executive director effective July 31, 2019.
271
Wipro Limited
39. Corporate Social Responsibility
a. Gross amount required to be spent by the Company during the year ` 1,690 (March 31, 2019: ` 1,783).
40. Additional information pursuant to para 2 of general instructions for the preparation of consolidated financial statements
Share in Other Share in total
Net Asset Share in Profit or Loss
Name of the Subsidiary comprehensive income comprehensive income
As % of total Amount in ` As % of total Amount in ` As % of total Amount in ` As % of total Amount in `
Parent
Wipro Limited 74.4% ` 465,540 98.8% ` 86,799 110.6% ` (4,312) 98.4% ` 82,487
Indian Subsidiaries
Wipro Overseas IT Services Pvt. Ltd - ` - - ` - - ` - - ` -
Wipro Trademarks Holding Limited 0.0% 46 0.0% 3 - - 0.0% 3
Wipro Travel Services Limited 0.0% 145 0.0% 19 - - 0.0% 19
Wipro HR Services India Private Limited 0.8% 5,304 1.1% 970 0.9% (35) 1.1% 935
Foreign Subsidiaries
Appirio Ltd 0.0% ` 45 0.0% `20 (0.1)% ` 3 0.0% `23
Appirio Ltd (UK) (0.1)% (543) (0.1)% (85) 0.4% (17) (0.1)% (102)
Appirio, Inc. 0.8% 4,937 0.0% 4 (9.1)% 354 0.4% 358
Appirio, K.K (0.0)% (224) 0.0% 4 0.6% (23) (0.0)% (19)
Cellent GmbH 0.2% 1,388 (0.1)% (45) (3.3)% 128 0.1% 83
Cellent GmbH 0.1% 579 0.2% 140 (0.9)% 36 0.2% 176
Cooper Software, Inc. (0.1)% (323) (0.3)% (275) 0.5% (21) (0.4)% (296)
Designit A/S 0.1% 769 (0.2)% (202) (12.4)% 483 0.3% 281
Designit Colombia S A S (0.0)% (28) (0.0)% (24) (0.1)% 4 (0.0)% (20)
Designit Denmark A/S 0.1% 489 (0.2)% (210) (1.0)% 38 (0.2)% (172)
Designit Germany GmbH (0.1)% (379) (0.2)% (175) 0.5% (21) (0.2)% (196)
Designit Oslo A/S 0.0% 59 0.0% 14 0.2% (6) 0.0% 8
Designit Peru SAC (0.0)% (45) (0.0)% (16) 0.1% (2) (0.0)% (18)
Designit Spain Digital, S.L 0.0% 12 (0.0)% (25) (0.0)% 1 (0.0)% (24)
Designit Sweden AB (0.0)% (205) (0.2)% (194) 0.1% (2) (0.2)% (196)
Designit T.L.V Ltd. 0.0% 161 0.0% 5 (0.4)% 16 0.0% 21
Designit Tokyo Ltd. (0.0)% (61) 0.0% 4 0.2% (6) (0.0)% (2)
HealthPlan Services Insurance Agency, LLC 0.0% 183 0.1% 129 (0.3)% 13 0.2% 142
HealthPlan Services, Inc. 0.1% 560 0.6% 536 (1.8)% 72 0.7% 608
Infocrossing, LLC (0.7)% (4,564) 1.6% 1,373 (4.5)% 174 1.8% 1,547
International TechneGroup Incorporated 0.1% 666 (0.1)% (103) (0.6)% 25 (0.1)% (78)
International TechneGroup Ltd. 0.0% 99 (0.0)% (6) (0.2)% 7 0.0% 1
International TechneGroup S.R.L. 0.0% 210 - - 0.2% (7) (0.0)% (7)
ITI Proficiency Ltd (0.0)% (283) (0.0)% (17) 0.3% (12) (0.0)% (29)
Mech Works S.R.L. 0.0% 103 0.0% 42 (0.2)% 6 0.1% 48
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273
Wipro Limited
Share in Other Share in total
Net Asset Share in Profit or Loss
Name of the Subsidiary comprehensive income comprehensive income
As % of total Amount in ` As % of total Amount in ` As % of total Amount in ` As % of total Amount in `
Wipro Technologies Australia Pty Ltd (0.0)% (240) 0.2% 208 (0.5)% 19 0.3% 227
Wipro Technologies GmbH (0.1)% (916) 0.6% 541 35.7% (1,393) (1.0)% (852)
Wipro Technologies Limited 0.0% 210 0.0% 31 0.6% (23) 0.0% 8
Wipro Technologies Nigeria Limited 0.0% 122 0.1% 118 (0.1)% 2 0.1% 120
Wipro Technologies Peru S.A.C. 0.0% 160 0.1% 57 (0.2)% 7 0.1% 64
Wipro Technologies S.R.L. 0.1% 598 (0.3)% (273) (0.8)% 32 (0.3)% (241)
Wipro Technologies SA 0.0% 212 0.1% 73 1.6% (62) 0.0% 11
Wipro Technologies SA DE CV 0.0% 2 0.3% 290 0.2% (6) 0.3% 284
Wipro Technologies SDN BHD 0.0% 5 (0.0)% (1) - - (0.0)% (1)
Wipro Technologies South Africa (Proprietary)
0.1% 538 0.1% 117 1.7% (68) 0.1% 49
Limited
Wipro Technologies VZ, C.A. (0.0)% (2) (0.0)% (13) (0.3)% 11 (0.0)% (2)
Wipro Technologies W.T. Sociedad Anonima (0.1)% (684) (0.2)% (195) 1.7% (68) (0.3)% (263)
Wipro Technology Chile SPA 0.0% 10 (0.1)% (79) 0.1% (3) (0.1)% (82)
Wipro UK Limited 0.0% 159 0.0% 31 0.4% (17) 0.0% 14
Wipro, LLC 1.7% 10,355 (9.6)% (8,413) (0.2)% 7 (10.0)% (8,406)
Women’s Business Park Technologies Limited (0.0)% (32) (0.1)% (97) - - (0.1)% (97)
Trusts
Wipro Equity Reward Trust 0.2% ` 1,293 0.1% ` 72 - ` - 0.1% ` 72
Wipro Foundation (0.0)% (5) (0.0)% (21) - - (0.0)% (21)
Total 100% ` 627,337 100% ` 87,948 100% ` (3,909) 100% ` 84,039
Non-controlling interest ` (1,875) ` (495) ` (158) ` (653)
Adjustment arising out of consolidation (72,245) 9,770 8,166 17,936
Grand Total ` 553,217 ` 97,223 ` 4,099 ` 101,322
41. During the year ended March 31, 2019, as part of a customer contract with Alight LLC, Wipro has acquired Alight HR Services India Private
Limited (currently known as Wipro HR Services India Private Limited) for a consideration of ` 8,275. Considering the terms and conditions
of the agreement, the Company has concluded that this transaction does not meet the definition of Business under Ind AS103 – Business
Combinations. The transaction was consummated on September 1, 2018. Net assets taken over was ` 4,128. The excess of consideration
paid, and net assets taken over is accounted as ‘costs to obtain contract’, which will be amortized over the tenure of the contract as
reduction in revenues.
As per our report of even date attached For and on behalf of the Board of Directors
for Deloitte Haskins & Sells LLP Rishad A. Premji M. K. Sharma Abidali Z. Neemuchwala
Chairman Director Chief Executive Officer
Chartered Accountants
& Managing Director
Firm’s Registration No: 117366W/W- 100018
Bengaluru Bengaluru
May 29, 2020 May 29, 2020
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Annual Report 2019-20
Pursuant to first proviso to sub-section (3) of section 129 of Companies Act, 2013, read with rule 5 of Companies (Accounts) Rules,2014 - AOC-1, the
Company is presenting summarised financial information about individual subsidiaries as at March 31, 2020 / December 31, 2019
Information relating to Subsidiaries as at March 31, 2020/December 31, 2019
275
12 Wipro do Brasil Technologia Ltda 29-May-01 31-Dec-19 BRL 18 455 1,495 3,153 1,202 - 100% 4,385 195 106 89 -
Corporate Overview |
13 Cellent GmbH 15-Jan-16 31-Mar-20 EUR 83 446 928 2,083 709 - 100% 3,895 (38) 4 (41) -
14 Opus Capital Markets Consultants 14-Jan-14 31-Mar-20 USD 76 76 138 1,710 1,496 - 100% 3,783 (452) (263) (189) -
LLC
15 Wipro Gallagher Solutions, LLC 01-Jul-08 31-Mar-20 USD 76 3,731 1,094 5,366 541 - 100% 3,433 470 135 336 -
16 Wipro Technologies S.R.L 17-Aug-06 31-Mar-20 RON 17 185 412 2,510 1,913 - 100% 3,373 (287) (15) (273) -
17 Wipro Gulf LLC 01-Jun-11 31-Mar-20 OMR 196 29 1,361 2,431 1,041 - 100% 2,987 475 75 400 -
18 Wipro IT Services Poland SP Z.O.O 06-Apr-12 31-Mar-20 PLN 18 * 897 1,749 852 - 100% 2,889 468 98 371 -
19 Wipro Networks Pte Limited 15-Dec-99 31-Mar-20 USD 76 1,691 (350) 3,003 1,662 - 100% 2,809 (31) 9 (40) -
20 Wipro do Brasil Servicos de 10-Apr-17 31-Dec-19 BRL 18 262 130 1,055 664 - 100% 2,066 239 68 171 -
Tecnologia S.A
21 Wipro Holdings (UK) Limited 09-Dec-02 31-Mar-20 GBP 93 7,416 (5,213) 11,519 9,317 4,487 100% 1,793 (781) 20 (801) -
22 Wipro Technologies South Africa 02-Nov-10 31-Mar-20 ZAR 4 22 514 938 402 - 100% 1,746 170 52 117 -
(Proprietary) Limited
Management & Board Reports |
23 PT WT Indonesia 24-Jul-09 31-Mar-20 IDR 0.005 62 1,029 1,435 343 - 100% 1,535 318 87 231 -
24 Wipro Chengdu Limited 13-Oct-08 31-Dec-19 CNY 10 391 924 2,184 870 - 100% 1,484 434 66 368 -
25 Appirio Ltd. (UK) 23-Nov-16 31-Mar-20 GBP 93 * (543) 471 1,014 - 100% 1,443 (147) (63) (85) -
26 Wipro Information Technology 30-Jun-06 31-Mar-20 EUR 83 1,823 2,398 6,807 2,586 - 100% 1,392 75 25 50 -
Netherlands BV
27 Wipro (Dalian) Limited 25-Dec-15 31-Dec-19 CNY 10 541 211 1,141 389 - 100% 1,269 241 39 202 -
28 Wipro Technologies Australia Pty Ltd 30-Apr-12 31-Mar-20 AUD 46 * (186) 1,097 1,284 - 100% 1,247 136 (80) 216 -
Financial Statements
Wipro Limited
Sr. Name of the Subsidiary Date of Reporting Reporting Exchange Share Reserves Total Total Investments % of Turnover Profit Provision Profit Proposed
No. becoming the period Currency rate as on capital & Surplus Assets Liabilities Holding before for after Dividend
subsidiary/ March excluding taxation taxation taxation (incl.
acquisition 31, 2020/ (6) & (7) dividend
December tax)
31, 2019 (j) (j) (j) (j) (i) & (j) (k) (k) (k) (k) (k)
29 Wipro IT Services SE (Formerly 27-Apr-06 31-Mar-20 INR 1 10 23,486 37,359 13,862 - 100% 1,219 1,164 138 1,026 -
known as Wipro Cyprus SE)
30 Cellent GmbH 15-Jan-16 31-Mar-20 EUR 83 6 572 783 205 - 100% 1,075 159 35 124 -
276
44 Wipro Bahrain Limited Co. S.P.C 28-Oct-09 31-Mar-20 BHD 199 10 555 653 88 - 100% 370 25 - 25 -
45 Rational Interaction, Inc. (b) 21-Feb-20 31-Mar-20 USD 76 * 61 773 712 - 100% 370 22 7 15 -
46 Wipro Technology Chile SPA 19-Dec-11 31-Mar-20 CLP 0.09 251 (240) 314 303 - 100% 364 (79) * (79) -
47 Designit Spain Digital SL 04-Nov-10 31-Mar-20 EUR 83 * 13 307 294 - 100% 360 (41) (8) (33) -
48 Wipro Technologies Nigeria Limited 15-Aug-12 31-Mar-20 NGN 0.20 3 119 714 591 - 100% 359 128 9 118 -
49 Healthplan Services Insurance 29-Feb-16 31-Dec-19 USD 71 * 159 159 * - 100% 331 112 - 112 -
Agency, LLC
50 Designit T.L.V Ltd. 01-Mar-05 31-Mar-20 ILS 21 * 157 213 56 - 100% 312 7 2 4 -
51 Wipro Technologies SA 22-Apr-08 31-Mar-20 ARS 1 149 58 319 112 - 100% 304 48 20 27 -
52 Wipro Technologies Peru SAC 15-Aug-12 31-Mar-20 PEN 22 41 119 240 80 - 100% 233 60 3 57 -
53 Wipro (Thailand) Co, Limited 30-Jul-07 31-Mar-20 THB 2 237 266 551 48 - 100% 215 42 7 35 -
54 Wipro Technologies WT Sociedad 15-Oct-10 31-Mar-20 CRC 0.13 * (684) 283 967 - 100% 213 (195) * (195) -
Anonima
55 Designit Germany GmbH 07-Nov-07 31-Mar-20 EUR 83 2 (403) 111 511 - 100% 197 (179) - (179) -
56 Wipro IT Services S.R.L 01-Nov-18 31-Mar-20 RON 17 * 20 93 72 - 100% 183 57 9 47 -
57 Wipro Do Brasil Sistemetas De 22-Aug-14 31-Dec-19 BRL 18 25 (41) 299 315 - 100% 158 * 4 (3) -
Informatica Ltd.
58 Designit Tokyo Ltd. 06-May-13 31-Mar-20 JPY 1 11 (65) 72 125 - 100% 152 4 (6) 10 -
59 Designit Colombia S A S 21-Dec-15 31-Dec-19 COP 0.02 57 (53) 94 90 - 100% 148 (28) * (28) -
60 Wipro Insurance Solutions, LLC 30-Nov-12 31-Mar-20 USD 76 30 146 208 32 - 100% 132 19 (6) 25 -
61 International TechneGroup Ltd. (a) 03-Oct-19 31-Mar-20 GBP 93 287 (187) 315 216 - 100% 127 (8) (1) (6) -
62 Wipro Poland Sp Z.o.o. 01-Jul-08 31-Mar-20 PLN 18 * 402 425 22 - 100% 119 20 7 13 -
Sr. Name of the Subsidiary Date of Reporting Reporting Exchange Share Reserves Total Total Investments % of urnover Profit Provision Profit Proposed
No. becoming the period Currency rate as on capital & Surplus Assets Liabilities Holding before for after Dividend
subsidiary/ Mar 31, excluding taxation taxation taxation (incl.
acquisition 2020/ Dec (6) & (7) dividend
31, 2019 tax)
(j) (j) (j) (j) (i) & (j) (k) (k) (k) (k) (k)
63 Wipro Information Technology 27-Sep-06 31-Mar-20 KZT 0.17 5 (18) 230 243 - 100% 110 * (5) 5 -
Kazakhstan LLP
64 MechWorks S.R.L. (a) 03-Oct-19 31-Mar-20 EUR 83 337 (234) 176 73 - 100% 99 56 13 42 -
65 Wipro Shanghai Limited 27-Apr-04 31-Dec-19 CNY 10 110 295 674 268 - 100% 91 23 * 23 -
66 Wipro Travel Services Limited 10-Jun-96 31-Mar-20 INR 1 * 142 506 364 - 100% 86 26 7 19 -
67 Wipro Technologies Limited 08-Feb-08 31-Dec-19 RUB 1 11 237 301 52 - 100% 68 5 1 4 -
68 Designit Peru S. A . C 01-Sep-16 31-Dec-19 PEN 21 54 (48) 34 29 - 100% 59 (16) (2) (13) -
69 Wipro Promax Analytics Solutions 30-Apr-12 31-Mar-20 USD 76 2 (430) 198 626 - 100% 41 (58) (81) 23 -
Americas, LLC
70 ITI Proficiency Ltd (a) 03-Oct-19 31-Mar-20 ILS 21 * (284) 36 320 - 100% 22 (18) - (18) -
71 Rational Interaction Limited (b) 21-Feb-20 31-Mar-20 EUR 83 * 22 23 * - 100% 10 * * * -
72 Wipro Technologies SDN BHD 16-Nov-06 31-Mar-20 MYR 17 * 6 14 8 - 100% 8 * * * -
73 Wipro Holdings Investment Korlátolt 23-Mar-17 31-Dec-19 USD 71 1 25,854 25,867 12 - 100% - 738 66 672 -
Felelősségű Társaság
74 Wipro Holdings Hungary Korlátolt 17-Sep-07 31-Dec-19 USD 71 1,963 37,639 39,604 2 - 100% - 559 62 497 -
Felelősségű Társaság
75 Wipro Information Technology Egypt 22-May-08 31-Mar-20 EGP 5 4 (140) 28 164 - 100% - 10 - 10 -
SAE (c)
76 Wipro Trademarks Holding Limited 30-Oct-82 31-Mar-20 INR 1 * 45 47 * - 100% - 3 * 2 -
277
Corporate Overview |
77 Wipro Technologies VZ, C.A. 13-Jun-13 31-Dec-19 VEF 0.002 * * - * - 100% - (2) - (2) -
78 Rational Consulting Australia Pty 21-Feb-20 31-Mar-20 AUD 46 * (15) * 16 - 100% - (2) - (2) -
Ltd. (b)
79 Wipro Financials services UK Ltd. 30-Apr-12 31-Mar-20 GBP 93 * (47) 5 52 - 100% - (6) (1) (5) -
80 Wipro UK Limited 01-Jun-11 31-Mar-20 GBP 93 66 77 1,414 1,271 - 100% - (25) (3) (22) -
81 Women's Business Park 26-Oct-17 31-Mar-20 SAR 20 75 (107) 676 707 - 55% - (114) (18) (97) -
Technologies Ltd.
82 Designit Denmark A/S 13-Sep-90 31-Mar-20 DKK 11 13 772 2,145 1,360 - 100% - (227) (13) (215) -
83 Wipro SA Broad Based Ownership 17-Jan-14 31-Mar-20 ZAR 4 582 * 583 * - 100% - * - * -
Scheme SPV (Rf) (Pty) Ltd.
84 International Technegroup S.R.L (a) 03-Oct-19 31-Mar-20 EUR 83 * 231 339 108 - 100% - * - * -
85 Wipro Europe Limited 01-Jun-11 31-Mar-20 GBP 93 9 103 112 - - 100% - - - - -
86 Wipro Corporate Technologies 09-Jul-14 31-Mar-20 GHS 13 30 2 34 1 - 100% - * - * -
Management & Board Reports |
Ghana Limited
87 Wipro IT Services Ukraine, LLC 06-Oct-14 31-Mar-20 UAH 3 5 (4) 5 4 - 100% - * - * -
88 Rainbow Software LLC 10-Jan-16 31-Dec-19 IQD 0.06 * (5) * 5 - 100% - * - * -
89 Wipro Overseas IT Services Pvt Ltd. 12-May-15 31-Mar-20 INR 1 * * * * - 100% - * - * -
90 Wipro US Foundation (d) 25-Jan-19 31-Mar-20 USD 76 - - - - - 100% - - - - -
Financial Statements
Wipro Limited
Part B -Associates and Joint Ventures
Name of the Latest Date on No. of shares Amont of Extent of Description Reason why Networth Profit or Loss for the year
associates/ audited which the held by the investment in Holding (in of how there the associate/ attributable to Considered in Not Considered
Joint Balance Associate Company in Associates percentage) is significant joint venture shareholding Consolidation in Consolidation
Ventures Sheet date or Joint Associate on the influence is not as per latest
Venture was yearend consolidated audited Balance
associated Sheet
or acquired
Drivestream 31-Dec-18 12-Jun-17 94,527 Seris A USD 9,480,032 43.75% Extent of Not USD (2,426,280) USD (269,869) USD (347,013)
Denim Group - 1-Mar-18 500 Membership USD 200,000 33% Extent of equity Not - - -
Management, Units holding in Applicable
LLC the associate
company
exceeds 20%
278
Note:
(a) International TechneGroup Incorporated, International TechneGroup Ltd., MechWorks S.R.L., ITI Proficiency Ltd. and International Technegroup S.R.L. , were acquired on October 3, 2019.
(b) Rational Interaction, Inc., Rational Interaction Limited and Rational Consulting Australia Pty Ltd. were acquired on February 21, 2020.
(c) Wipro Information Technology Egypt SAE has been put into liquidation with effect from September 30, 2016.
(d) Wipro US Foundation is yet to start operations.
(e) Frontworx Informationstechnologie GmbH was merged with and into Cellent GmbH, Austria with effect from August 22, 2019. Therefore, particulars of the entity are not included in the above list.
(f) Appirio GmbH is liquidated with effect from January 22, 2020. Therefore, particulars of the entity are not included in the above list.
(g) Digital Aps was merged with and into Designit A/s with effect from March 16, 2020. Therefore, particulars of the entity are not included in the above list
(h) Wipro Retail UK is dissolved with effect from July 23, 2019. Therefore, particulars of the entity are not included in the above list.
(i) Investments excludes investments in subsidiaries and associates.
(j) Indian rupee equivalents of the figures in foreign currencies of accounts of the subsidiary companies are based on the exchange rates as of the respective reporting period end dates.
(k) Indian rupee equivalents of the figures in foreign currencies of accounts of the subsidiary companies are converted on the yearly average exchange rates.
(*) Value is less than One Million Rupees
Bengaluru
May 29, 2020
Corporate Overview | Management & Board Reports | Financial Statements
279
Wipro Limited
This estimate has a high inherent uncertainty and requires Allowance for credit losses Refer Notes 2(iv)(g), 3(x)(A), 9
consideration of progress of the contract, efforts incurred and 25 to the financial statements
to-date and estimates of efforts required to complete the
remaining contract performance obligations over the lives of Critical Audit Matter Description
the contracts.
The Company determines the allowance for credit losses
This required a high degree of auditor judgment in evaluating based on historical loss experience adjusted to reflect
the audit evidence supporting the application of the input current and estimated future economic conditions. The
method used to recognize revenue and a higher extent of audit Company considered current and anticipated future
effort to evaluate the reasonableness of the total estimated economic conditions relating to industries the Company
amount of revenue recognized on fixed-price contracts. deals with and the countries where it operates. In calculating
expected credit losses, the Company also considered credit
How the Critical Audit Matter Was Addressed in the Audit reports and other related credit information for its customers
to estimate the probability of default in future and has taken
Our audit procedures related to estimates of efforts to
into account estimates of possible effect from the pandemic
complete for fixed-price contracts accounted using the
relating to COVID-19.
percentage-of-completion method included the following,
among others: We identified allowance for credit losses as a critical audit
• We tested the effectiveness of controls relating to (1) matter because of the significant judgement involved in
recording of efforts incurred and estimation of efforts calculating the expected credit losses. This required a high
required to complete the remaining contract performance degree of auditor judgment and an increased extent of
obligations, and (2) access and application controls effort when performing audit procedures to evaluate the
pertaining to time recording and allocation systems, reasonableness of management’s estimate of the expected
which prevents unauthorised changes to recording of credit losses.
efforts incurred.
How the Critical Audit Matter Was Addressed in the Audit
• We evaluated management’s ability to reasonably
estimate the progress towards satisfying the performance Our audit procedures related to the allowance for credit
obligation by comparing actual information to estimates losses for trade receivables, unbilled receivables and
for performance obligations that have been fulfilled. contract assets included the following, among others:
• We selected a sample of fixed price contracts with • We tested the effectiveness of controls over the (1)
customers accounted using percentage-of-completion development of the methodology for the allowance for
method and performed the following: credit losses, including consideration of the current and
estimated future economic conditions, (2) completeness
o Read the contract and based on the terms and and accuracy of information used in the estimation of
conditions evaluated whether recognizing revenue probability of default, and (3) computation of the allowance
over time was appropriate, and the contract was for credit losses.
included in management’s calculation of revenue over
time. • For a sample of customers we tested the input data such
as credit reports and other credit related information used
o Evaluated other information that supported the in estimating the probability of default by comparing them
estimates of the progress towards satisfying the to external and internal sources of information.
performance obligation.
• We evaluated the incorporation of the applicable
o Evaluated the appropriateness of and consistency assumptions into the estimate of expected credit losses
in the application of management’s policies and and tested the mathematical accuracy and computation
methodologies to estimate progress towards of the allowances by using the same input data used by
satisfying the performance obligation. the Company.
o Compared efforts incurred with Company’s estimate • We evaluated the qualitative adjustment to the historical
of efforts incurred to date to identify significant loss rates, including assessing the basis for the
variations and evaluate whether those variations adjustments and the reasonableness of the significant
have been considered appropriately in estimating the assumptions.
remaining efforts to complete the contract.
o Tested the estimate for consistency with the status of /S/Deloitte Haskins & Sells LLP
delivery of milestones and customer acceptances to
Bengaluru, India
identify possible delays in achieving milestones, which
May 29, 2020
require changes in estimated efforts to complete the
remaining performance obligations. We have served as the Company’s auditor since fiscal 2018.
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As at As at As at
Notes
March 31, 2019 March 31, 2020 March 31, 2020
Convenience
translation into US
dollar in millions
(unaudited) Refer to
Note 2(iii)
ASSETS
Goodwill 6 116,980 131,012 1,738
Intangible assets 6 13,762 16,362 217
Property, plant and equipment 4 70,601 81,120 1,076
Right-of-use assets 5 - 16,748 222
Financial assets
Derivative assets 19 173 - -
Investments 8 6,916 9,302 123
Trade receivables 9 4,373 6,049 80
Other financial assets 12 5,146 5,881 78
Investments accounted for using the equity method 8 1,235 1,383 18
Deferred tax assets 21 5,604 6,005 80
Non-current tax assets 20,603 11,414 151
Other non-current assets 13 15,872 11,935 158
Total non-current assets 261,265 297,211 3,941
Inventories 10 3,951 1,865 25
Financial assets
Derivative assets 19 4,931 3,025 40
Investments 8 220,716 189,635 2,515
Cash and cash equivalents 11 158,529 144,499 1,917
Trade receivables 9 100,489 104,474 1,386
Unbilled receivables 22,880 25,209 335
Other financial assets 12 14,611 8,614 114
Contract assets 15,038 17,143 228
Current tax assets 7,435 2,882 38
Other current assets 13 23,086 22,505 299
571,666 519,851 6,897
Assets held for sale 240 - -
Total current assets 571,906 519,851 6,897
TOTAL ASSETS 833,171 817,062 10,838
EQUITY
Share capital 12,068 11,427 152
Securities premium reserve 533 1,275 17
Retained earnings 534,700 519,907 6,896
Share-based payment reserve 2,617 1,550 21
Other components of equity 18,198 23,299 309
Equity attributable to the equity holders of the Company 568,116 557,458 7,395
Non-controlling interest 2,637 1,875 25
TOTAL EQUITY 570,753 559,333 7,420
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Consolidated Statement of Financial Position
(` in millions, except share and per share data, unless otherwise stated)
As at As at As at
Notes
March 31, 2019 March 31, 2020 March 31, 2020
Convenience
translation into US
dollar in millions
(unaudited) Refer to
Note 2(iii)
LIABILITIES
Financial liabilities
Long - term loans and borrowings 14 28,368 4,840 64
Derivative liabilities 19 - 138 2
Lease liabilities 14 - 12,638 168
Other financial liabilities 16 - 151 2
Deferred tax liabilities 21 3,417 2,825 37
Non-current tax liabilities 11,023 13,205 175
Other non-current liabilities 17 5,258 7,537 100
Provisions 18 2 2 ^
Total non-current liabilities 48,068 41,336 548
Financial liabilities
Loans, borrowings and bank overdrafts 14 71,099 73,202 971
Derivative liabilities 19 1,310 7,231 96
Trade payables and accrued expenses 15 88,304 78,129 1,036
Lease liabilities 14 - 6,560 87
Other financial liabilities 16 644 899 12
Contract liabilities 24,768 18,775 249
Current tax liabilities 9,541 11,731 156
Other current liabilities 17 18,046 19,254 255
Provisions 18 638 612 8
Total current liabilities 214,350 216,393 2,870
TOTAL LIABILITIES 262,418 257,729 3,418
TOTAL EQUITY AND LIABILITIES 833,171 817,062 10,838
^ Value is less than 1
The accompanying notes form an integral part of these consolidated financial statements.
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Wipro Limited
Consolidated Statement of Comprehensive Income
(` in millions, except share and per share data, unless otherwise stated)
Total comprehensive income for the year 76,975 91,196 102,326 1,356
The accompanying notes form an integral part of these consolidated financial statements.
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Consolidated Statement Of Changes In Equity
(` in millions, except share and per share data, unless otherwise stated)
285
to owners of the Company
Corporate Overview |
the Company
As at March 31, 2018 4,523,784,491 9,048 800 453,265 1,772 16,618 (114) 1,547 482,936 2,410 485,346
The accompanying notes form an integral part of these consolidated financial statements.
Financial Statements
Wipro Limited
Consolidated Statement of Changes In Equity
(` in millions, except share and per share data, unless otherwise stated)
Other components of equity
Share Equity
Share-
capital, Securities Foreign attributable Non-
Number of Retained based Cash flow Total
Particulars fully premium currency Other to the equity controlling
Shares* earnings payment hedging equity
paid- reserve translation reserves holders of interest
As at April 1, 2018 4,523,784,491 9,048 800 453,265 1,772 16,618 (114) 1,547 482,936 2,410 485,346
Adjustment on adoption of IFRS
- - - (2,279) - - - - (2,279) - (2,279)
15
Adjusted balance as at April 1,
4,523,784,491 9,048 800 450,986 1,772 16,618 (114) 1,547 480,657 2,410 483,067
2018
Total comprehensive income for
the year
Profit for the year - - - 90,031 - - - - 90,031 142 90,173
Other comprehensive income - - - - - (1,368) 2,529 (247) 914 109 1,023
Total comprehensive income for
- - - 90,031 - (1,368) 2,529 (247) 90,945 251 91,196
the year
Transaction with owners of the
Company, recognized directly in
286
equity
Contributions by and
distributions to owners of the
Company
Issue of equity shares on exercise
1,681,717 4 528 - (528) - - - 4 - 4
of options
Issue of shares by controlled
- - - 565 (565) - - - - - -
trust on exercise of options
Cash dividend paid (including
- - - (5,434) - - - - (5,434) - (5,434)
dividend tax thereon) #
Bonus issue of equity shares # 1,508,469,180 3,016 (795) (1,454) - - - (767) - - -
Loss of control in subsidiary - - - - - - - - - (52) (52)
Infusion of capital - - - - - - - - - 28 28
Compensation cost related to
- - - 6 1,938 - - - 1,944 - 1,944
employee share-based payment
Total transactions with owners
1,510,150,897 3,020 (267) (6,317) 845 - - (767) (3,486) (24) (3,510)
of the Company
As at March 31, 2019 6,033,935,388 12,068 533 534,700 2,617 15,250 2,415 533 568,116 2,637 570,753
The accompanying notes form an integral part of these consolidated financial statements.
Consolidated Statement of Changes in Equity
(` in millions, except share and per share data, unless otherwise stated)
287
Buyback of equity shares # (323,076,923) (646) - (105,000) - - - 646 (105,000) - (105,000)
Corporate Overview |
As at March 31, 2020 5,713,357,390 11,427 1,275 519,907 1,550 23,539 (2,315) 2,075 557,458 1,875 559,333
Convenience translation into US dollar in millions
(unaudited) Refer to Note 2(iii) 152 17 6,896 21 312 (31) 28 7,395 25 7,420
* Includes 23,097,216, 27,353,853 and 22,746,081 treasury shares held as at March 31, 2018, 2019 and 2020, respectively by a controlled trust.
4,351,775, 2,599,183 and 4,607,772 shares have been transferred by the controlled trust to eligible employees on exercise of options during the year ended March 31, 2018, 2019 and 2020, respectively.
# Refer to Note 22
## Refer to Note 3
### Refer to Note 30
The accompanying notes form an integral part of these consolidated financial statements.
Financial Statements
Wipro Limited
Consolidated Statement of Cash Flows
(` in millions, except share and per share data, unless otherwise stated)
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Wipro Limited
Notes to the Consolidated Financial Statements
(` in millions, except share and per share data, unless otherwise stated)
1. The Company overview c. The defined benefit asset/ (liability) is recognized as the present
Wipro Limited (“Wipro” or the “Parent Company”), together with its value of defined benefit obligation less fair value of plan assets;
subsidiaries and controlled trusts (collectively, “we”, “us”, “our”, “the and
Company” or the “Group”) is a global information technology (“IT”), d. Contingent consideration.
consulting and business process services (“BPS”) company.
(iii) Convenience translation (unaudited)
Wipro is a public limited company incorporated and domiciled in India.
The address of its registered office is Wipro Limited, Doddakannelli, The accompanying consolidated financial statements have been
Sarjapur Road, Bengaluru – 560 035, Karnataka, India. Wipro has its prepared and reported in Indian rupees, the functional currency of
primary listing with BSE Ltd. and National Stock Exchange of India the Parent Company. Solely for the convenience of the readers, the
Ltd. The Company’s American Depository Shares representing equity consolidated financial statements as at and for the year ended March
shares are also listed on the New York Stock Exchange. 31, 2020, have been translated into United States dollars at the
certified foreign exchange rate of $1 = ` 75.39 as published by Federal
These consolidated financial statements were authorized for issue Reserve Board of Governors on March 31, 2020. No representation is
by the Company’s Board of Directors on May 29, 2020. 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
2. Basis of preparation of consolidated financial other rate. Due to rounding off, the translated numbers presented
statements throughout the document may not add up precisely to the totals.
(i) Statement of compliance and basis of preparation
(iv) Use of estimates and judgment
The consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards and The preparation of the consolidated financial statements in
its interpretations (“IFRS”), as issued by the International Accounting conformity with IFRS requires management to make judgments,
Standards Board (“IASB”). All accounting policies have been applied estimates and assumptions that affect the application of accounting
consistently to all periods presented in these consolidated financial policies and the reported amounts of assets, liabilities, income, and
statements, except for new accounting standards adopted by the expenses. Actual results may differ from those estimates.
Company.
Estimates and underlying assumptions are reviewed on an ongoing
The consolidated financial statements correspond to the basis. Revisions to accounting estimates are recognized in the period
classification provisions contained in IAS 1(revised), “Presentation in which the estimates are revised and in any future periods affected.
of Financial Statements”. For clarity, various items are aggregated In particular, information about significant areas of estimation,
in the consolidated statement of income, consolidated statement uncertainty and critical judgments in applying accounting policies
of comprehensive income and consolidated statement of financial that have the most significant effect on the amounts recognized in
position. These items are disaggregated separately in the notes to the consolidated financial statements are included in the following
the consolidated financial statements, where applicable. notes:
All amounts included in the consolidated financial statements are a) Revenue recognition: The Company applies judgement to
reported in millions of Indian rupees (` in millions) except share determine whether each product or service promised to a
and per share data, unless otherwise stated. Due to rounding off, customer is capable of being distinct, and is distinct in the
the numbers presented throughout the document may not add up context of the contract, if not, the promised products or services
precisely to the totals and percentages may not precisely reflect the are combined and accounted as a single performance obligation.
absolute figures. The Company allocates the arrangement consideration to
separately identifiable performance obligation deliverables
(ii) Basis of measurement based on their relative stand-alone selling price. In cases where
The consolidated financial statements have been prepared on a the Company is unable to determine the stand-alone selling
historical cost convention and on an accrual basis, except for the price the company uses expected cost plus margin approach
following material items which have been measured at fair value as in estimating the stand-alone selling price. The Company uses
required by relevant IFRS: the percentage of completion method using the input (cost
expended) method to measure progress towards completion
a. Derivative financial instruments,
in respect of fixed price contracts. Percentage of completion
b. Financial instruments classified as fair value through other method accounting relies on estimates of total expected contract
comprehensive income or fair value through profit or loss, revenue and costs. This method is followed when reasonably
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dependable estimates of the revenues and costs applicable to of the identifiable assets (including useful life estimates) and
various elements of the contract can be made. Key factors that liabilities acquired, and contingent consideration assumed
are reviewed in estimating the future costs to complete include involves management judgment. These measurements are
estimates of future labor costs and productivity efficiencies. based on information available at the acquisition date and are
Because the financial reporting of these contracts depends based on expectations and assumptions that have been deemed
on estimates that are assessed continually during the term reasonable by management. Changes in these judgments,
of these contracts, revenue recognized, profit and timing of estimates, and assumptions can materially affect the results of
revenue for remaining performance obligations are subject operations.
to revisions as the contract progresses to completion. When
estimates indicate that a loss will be incurred, the loss is f) Defined benefit plans and compensated absences: The cost
provided for in the period in which the loss becomes probable. of the defined benefit plans, compensated absences and the
Volume discounts are recorded as a reduction of revenue. When present value of the defined benefit obligations are based on
the amount of discount varies with the levels of revenue, volume actuarial valuation using the projected unit credit method.
discount is recorded based on estimate of future revenue from An actuarial valuation involves making various assumptions
the customer. that may differ from actual developments in the future. These
include the determination of the discount rate, future salary
b) Impairment testing: Goodwill and intangible assets with infinite increases and mortality rates. Due to the complexities involved
useful life recognized on business combination are tested for in the valuation and its long-term nature, a defined benefit
impairment at least annually and when events occur or changes obligation is highly sensitive to changes in these assumptions.
in circumstances indicate that the recoverable amount of the All assumptions are reviewed at each reporting date.
asset or the cash generating unit to which these pertain is
less than the carrying value. The Company assesses acquired g) Expected credit losses on financial assets: The impairment
intangible assets with finite useful life for impairment whenever provisions of financial assets are based on assumptions
events or changes in circumstances indicate that the carrying about risk of default and expected timing of collection. The
amount may not be recoverable. The recoverable amount of the Company uses judgment in making these assumptions and
asset or the cash generating units is higher of value-in-use and selecting the inputs to expected credit loss calculation based
fair value less cost of disposal. The calculation of value in use on the Company’s past history of collections, customer’s
of an asset or a cash generating unit involves use of significant creditworthiness, existing market conditions as well as forward
estimates and assumptions which include turnover, growth looking estimates at the end of each reporting period.
rates and net margins used to calculate projected future cash
flows, risk-adjusted discount rate, future economic and market h) Measurement of fair value of non-marketable equity
conditions. investments: These instruments are initially recorded at
cost and subsequently measured at fair value. Fair value
c) Income taxes: The major tax jurisdictions for the Company are of investments is determined using the market and income
India and the United States of America. Significant judgments approaches. The market approach includes the use of financial
are involved in determining the provision for income taxes metrics and ratios of comparable companies, such as revenue,
including judgment on whether tax positions are probable earnings, comparable performance multiples, recent financial
of being sustained in tax assessments. A tax assessment rounds and the level of marketability of the investments. The
can involve complex issues, which can only be resolved over selection of comparable companies requires management
extended time periods. judgment and is based on number of factors, including
d) Deferred taxes: Deferred tax is recorded on temporary comparable company sizes, growth rates, and development
differences between the tax bases of assets and liabilities stages. The income approach includes the use of discounted
and their carrying amounts, at the rates that have been cash flow model, which requires significant estimates regarding
enacted or substantively enacted at the reporting date. The the investees’ revenue, costs, and discount rates based on the
ultimate realization of deferred tax assets is dependent upon risk profile of comparable companies. Estimates of revenue and
the generation of future taxable profits during the periods in costs are developed using available historical and forecast data.
which those temporary differences and tax loss carry-forwards
i) Useful lives of property, plant and equipment: The Company
become deductible. The Company considers expected reversal
depreciates property, plant and equipment on a straight-line
of deferred tax liabilities and projected future taxable income
basis over estimated useful lives of the assets. The charge in
in making this assessment. The amount of deferred tax assets
respect of periodic depreciation is derived based on an estimate
considered realizable, however, could reduce in the near term
of an asset’s expected useful life and the expected residual value
if estimates of future taxable income during the carry-forward
at the end of its life. The life is based on historical experience
period are reduced.
with similar assets as well as anticipation of future events,
e) Business combination: In accounting for business which may impact their life, such as changes in technology. The
combinations, judgment is required in identifying whether an estimated useful life is reviewed at least annually.
identifiable intangible asset is to be recorded separately from
goodwill. Additionally, estimating the acquisition date fair value j) Useful lives of intangible assets: The Company amortizes
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Wipro Limited
intangible assets on a straight-line basis over estimated 3. Significant accounting policies
useful lives of the assets. The useful life is estimated based
(i) Basis of consolidation
on a number of factors including the effects of obsolescence,
demand, competition and other economic factors such as the Subsidiaries and controlled trusts
stability of the industry and known technological advances
The Company determines the basis of control in line with the
and the level of maintenance expenditures required to obtain
requirements of IFRS 10, Consolidated Financial Statements.
the expected future cash flows from the assets. The estimated
Subsidiaries and controlled trusts are entities controlled by the
useful life is reviewed at least annually.
Group. The Group controls an entity when the parent has power over
the entity, it is exposed to, or has rights to, variable returns from
k) Leases: IFRS 16 defines a lease term as the non-cancellable
its involvement with the entity and has the ability to affect those
period for which the lessee has the right to use an underlying
returns through its power over the entity. The financial statements
asset including optional periods, when an entity is reasonably
of subsidiaries and controlled trusts are included in the consolidated
certain to exercise an option to extend (or not to terminate)
financial statements from the date on which control commences
a lease. The Company considers all relevant facts and
until the date on which control ceases.
circumstances that create an economic incentive for the lessee
to exercise the option when determining the lease term. The
All intra-Group balances, transactions, income and expenses are
option to extend the lease term is included in the lease term, if it
eliminated in full on consolidation.
is reasonably certain that the lessee would exercise the option.
The Company reassesses the option when significant events or Non-controlling interest
changes in circumstances occur that are within the control of
Non-controlling interests in the net assets (excluding goodwill)
the lessee.
of consolidated subsidiaries are identified separately from the
Company’s equity. The interest of non-controlling shareholders may
l) Other estimates: The share-based compensation expense
be initially measured either at fair value or at the non-controlling
is determined based on the Company’s estimate of equity
interest’s proportionate share of the fair value of the acquiree’s
instruments that will eventually vest. Fair valuation of derivative
identifiable net assets. The choice of measurement basis is made on
hedging instruments designated as cash flow hedges involves
an acquisition to acquisition basis. Subsequent to acquisition, the
significant estimates relating to the occurrence of forecasted
carrying amount of non-controlling interest is the amount of those
transaction.
interests at initial recognition plus the non-controlling interest’s
m) Uncertainty relating to the global health pandemic on share of subsequent changes in equity. Total comprehensive income
COVID-19: In assessing the recoverability of receivables is attributed to non-controlling interests even if it results in the non-
including unbilled receivables, contract assets and contract controlling interest having a deficit balance.
costs, goodwill, intangible assets, and certain investments, the
Company has considered internal and external information up Investments accounted for using the equity method
to the date of approval of these financial statements including Investments accounted for using the equity method are entities
credit reports and economic forecasts. The Company has in respect of which, the Company has significant influence, but
performed sensitivity analysis on the assumptions used herein. not control, over the financial and operating policies. Generally, a
Based on the current indicators of future economic conditions, Company has a significant influence if it holds between 20 and 50
the Company expects to recover the carrying amount of these percent of the voting power of another entity. Investments in such
assets. entities are accounted for using the equity method and are initially
recognized at cost. The carrying amount of investment is increased/
The Company basis its assessment believes that the probability decreased to recognize investors share of profit or loss of the investee
of the occurrence of forecasted transactions is not impacted after the acquisition date.
by COVID-19. The Company has also considered the effect of
changes, if any, in both counterparty credit risk and own credit Non-current assets and disposal groups held for sale
risk while assessing hedge effectiveness and measuring hedge Assets and liabilities of disposal groups that are available for
ineffectiveness and continues to believe that there is no impact immediate sale and where the sale is highly probable of being
on effectiveness of its hedges. completed within one year from the date of classification are
considered and classified as assets held for sale and liabilities
The impact of COVID-19 remains uncertain and may be different
associated with assets held for sale. Non-current assets and
from what we have estimated as of the date of approval of
disposal groups held for sale are measured at the lower of carrying
these consolidated financial statements and the Company will
amount and fair value less costs to sell.
continue to closely monitor any material changes to future
economic conditions.
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(ii) Functional and presentation currency to the extent the hedge is effective. To the extent the hedge is
Items included in the financial statements of each of the Company’s ineffective, such differences are recognized in the consolidated
entities are measured using the currency of the primary economic statement of income.
environment in which these entities operate (i.e. the “functional
When the hedged part of a net investment is disposed of,
currency”). These consolidated financial statements are presented
the relevant amount recognized in FCTR is transferred to the
in Indian rupees, which is the functional currency of the Parent consolidated statement of income as part of the profit or loss on
Company. disposal. Foreign currency differences arising from translation
of intercompany receivables or payables relating to foreign
(iii) Foreign currency transactions and translation
operations, the settlement of which is neither planned nor likely
a) Transactions and balances in the foreseeable future, are considered to form part of net
Transactions in foreign currency are translated into the investment in foreign operation and are recognized in FCTR.
respective functional currencies using the exchange rates
(iv) Financial instruments
prevailing at the date of the transaction. Foreign exchange gains
and losses resulting from the settlement of such transactions A) Non-derivative financial instruments:
and from translation at the exchange rates prevailing at the Non-derivative financial instruments consist of:
reporting date of monetary assets and liabilities denominated in • financial assets which include cash and cash equivalents, trade
foreign currencies are recognized in the consolidated statement receivables, unbilled receivables, finance lease receivables,
of income and reported within foreign exchange gains/(losses), employee and other advances, investments in equity and debt
net, within results of operating activities except when deferred securities and eligible current and non-current assets; Financial
in other comprehensive income as qualifying cash flow hedges assets are derecognized when substantial risks and rewards
and qualifying net investment hedges. Gains/(losses), net, of ownership of the financial asset have been transferred. In
relating to translation or settlement of borrowings denominated cases where substantial risks and rewards of ownership of the
in foreign currency are reported within finance expense. financial assets are neither transferred nor retained, financial
Non-monetary assets and liabilities denominated in foreign assets are derecognized only when the Company has not
currency and measured at historical cost are translated at the retained control over the financial asset.
exchange rate prevalent at the date of transaction. Translation
differences on non-monetary financial assets measured at • financial liabilities which include long and short-term loans
fair value at the reporting date, such as equities classified as and borrowings, bank overdrafts, trade payables and accrued
financial instruments measured at fair value through other expenses, lease liabilities and eligible current and non-current
comprehensive income are included in other comprehensive liabilities.
income, net of taxes.
Non-derivative financial instruments are recognized initially
b) Foreign operations at fair value. Subsequent to initial recognition, non-derivative
For the purpose of presenting consolidated financial statements, financial instruments are measured as described below:
the assets and liabilities of the Company’s foreign operations
a. Cash and cash equivalents
that have a functional currency other than Indian rupees are
translated into Indian rupees using exchange rates prevailing at The Company’s cash and cash equivalents consist of cash on
the reporting date. Income and expense items are translated at hand and in banks and demand deposits with banks, which can
the average exchange rates for the period. Exchange differences be withdrawn at any time, without prior notice or penalty on the
arising, if any, are recognized in other comprehensive income principal.
and held in foreign currency translation reserve (FCTR), a
component of equity, except to the extent that the translation For the purposes of the cash flow statement, cash and cash
difference is allocated to non-controlling interest. When a equivalents include cash on hand, in banks and demand
foreign operation is disposed of, the relevant amount recognized deposits with banks, net of outstanding bank overdrafts that are
in FCTR is transferred to the consolidated statement of income repayable on demand and are considered part of the Company’s
as part of the profit or loss on disposal. Goodwill and fair value cash management system. In the consolidated statement
adjustments arising on the acquisition of a foreign operation of financial position, bank overdrafts are presented under
are treated as assets and liabilities of the foreign operation and borrowings within current liabilities.
translated at the exchange rate prevailing at the reporting date.
b. Investments
c) Others Financial instruments measured at amortized cost:
Foreign currency differences arising on the translation or Debt instruments that meet the following criteria are measured
settlement of a financial liability designated as a hedge of a at amortized cost (except for debt instruments that are
net investment in a foreign operation are recognized in other designated at fair value through Profit or Loss (FVTPL) on initial
comprehensive income and presented within equity in the FCTR recognition):
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Wipro Limited
• the asset is held within a business model whose objective c. Other financial assets:
is to hold assets in order to collect contractual cash flows; Other financial assets are non-derivative financial assets
and with fixed or determinable payments that are not quoted
• the contractual terms of the instrument give rise on in an active market. They are presented as current assets,
specified dates to cash flows that are solely payment of except for those maturing later than 12 months after the
principal and interest on the principal amount outstanding. reporting date which are presented as non-current assets.
These are initially recognized at fair value and subsequently
Financial instruments measured at fair value through other measured at amortized cost using the effective interest
comprehensive income (FVTOCI): method, less any impairment losses. These comprise trade
receivables, unbilled receivables, finance lease receivables,
Debt instruments that meet the following criteria are employee and other advances and eligible current and non-
measured at fair value through other comprehensive current assets.
income (FVTOCI) (except for debt instruments that are
designated at fair value through Profit or Loss (FVTPL) on d. Trade payables, accrued expenses, and other liabilities
initial recognition): Trade payables, accrued expenses, and other liabilities are
initially recognized at fair value, and subsequently carried
• the asset is held within a business model whose objective
at amortized cost using the effective interest method.
is achieved both by collecting contractual cash flows and
For these financial instruments, the carrying amounts
selling the financial asset; and
approximate fair value due to the short-term maturity of
• the contractual terms of the instrument give rise on these instruments. Contingent consideration recognized in
specified dates to cash flows that are solely payment of the business combination is subsequently measured at fair
principal and interest on the principal amount outstanding. value through profit or loss.
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transaction occurs. The cumulative gain or loss previously Every holder of the equity shares, as reflected in the records of
recognized in the cash flow hedging reserve is transferred to the Company, as at the date of the shareholder meeting shall
the consolidated statement of income upon the occurrence of have one vote in respect of each share held for all matters
the related forecasted transaction. If the forecasted transaction submitted to vote in the shareholder meeting.
is no longer expected to occur, such cumulative balance is
immediately recognized in the consolidated statement of b) Shares held by controlled trust (Treasury shares)
income. The Company’s equity shares held by the controlled trust,
which is consolidated as a part of the Group are classified as
b. Hedges of net investment in foreign operations
Treasury shares. The Company has 23,097,216, 27,353,853 and
The Company designates derivative financial instruments as 22,746,081 treasury shares as at March 31, 2018, 2019 and
hedges of net investments in foreign operations. The Company 2020, respectively. Treasury shares are recorded at acquisition
also designates foreign currency denominated borrowing as a cost.
hedge of net investment in foreign operations. Changes in the fair
value of the derivative hedging instruments and gains/(losses) c) Retained earnings
on translation or settlement of foreign currency denominated Retained earnings comprises of the Company’s undistributed
borrowings designated as a hedge of net investment in foreign earnings after taxes. This includes Capital reserve as at March
operations are recognized in other comprehensive income and 31, 2018, 2019 and 2020 amounting to ` 1,139, ` 1,139, and
presented within equity in the FCTR to the extent that the hedge ` 1,139 respectively, which is not freely available for distribution.
is effective. To the extent that the hedge is ineffective, changes
in fair value are recognized in the consolidated statement of It also includes Nil, ` 28,565 and ` 43,804 as at March 31, 2018,
income and reported within foreign exchange gains/(losses), net 2019 and 2020, respectively representing the Special Economic
within results from operating activities. Zone (“SEZ”) Re-Investment Reserve. The SEZ Re-Investment
Reserve has been created out of profit of eligible SEZ units as
c. Others
per provisions of section 10AA(1)(ii) of the Income–tax Act, 1961
Changes in fair value of foreign currency derivative instruments for acquiring new plant and machinery. The said reserve should
neither designated as cash flow hedges nor hedges of net be utilized by the Company for acquiring plant and machinery as
investment in foreign operations are recognized in the per terms of Section 10AA(2) of the Income-tax Act, 1961. This
consolidated statement of income and reported within foreign reserve is not freely available for distribution.
exchange gains/(losses), net within results from operating
activities. Changes in fair value and gains/(losses), net, on d) Share-based payment reserve
settlement of foreign currency derivative instruments relating
The share-based payment reserve is used to record the value
to borrowings, which have not been designated as hedges are
of equity-settled share-based payment transactions with
recorded in finance expenses.
employees. The amounts recorded in share-based payment
C) Derecognition of financial instruments reserve are transferred to securities premium reserve upon
exercise of stock options and restricted stock unit options by
The Company derecognizes a financial asset when the employees.
contractual rights to the cash flows from the financial asset
expire or it transfers the financial asset and the transfer e) Foreign currency translation reserve (FCTR)
qualifies for derecognition under IFRS 9. If the Company retains The exchange differences arising from the translation of
substantially all the risks and rewards of a transferred financial financial statements of foreign subsidiaries, differences arising
asset, the Company continues to recognize the financial asset from translation of long-term inter-company receivables or
and recognizes a borrowing for the proceeds received. A financial payables relating to foreign operations settlement of which is
liability (or a part of a financial liability) is derecognized from the neither planned nor likely in the foreseeable future, changes in
Company’s statement of financial position when the obligation fair value of the derivative hedging instruments and gains/losses
specified in the contract is discharged or cancelled or expires. on translation or settlement of foreign currency denominated
borrowings designated as hedge of net investment in foreign
(v) Equity and share capital
operations are recognized in other comprehensive income, net
a) Share capital and Securities premium reserve of taxes and presented within equity in the FCTR.
The authorized share capital of the Company as at March 31, f) Cash flow hedging reserve
2020 is ` 25,274 divided into 12,504,500,000 equity shares of `
Changes in fair value of derivative hedging instruments
2 each, 25,000,000 preference shares of ` 10 each and 150,000
designated and effective as a cash flow hedge are recognized in
10% optionally convertible cumulative preference shares of `
other comprehensive income, net of taxes and presented within
100 each. Par value of the equity shares is recorded as share
equity as cash flow hedging reserve.
capital and the amount received in excess of par value is
classified as securities premium reserve.
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g) Other reserves Subsequent expenditure relating to property, plant and
Changes in the fair value of financial instruments measured at equipment is capitalized only when it is probable that future
fair value through other comprehensive income and actuarial economic benefits associated with these will flow to the
gains and losses on defined benefit plans are recognized in Company and the cost of the item can be measured reliably.
other comprehensive income, net of taxes and presented within
Deposits and advances paid towards the acquisition of property,
equity in other reserves.
plant and equipment outstanding as at each reporting date and
Other reserves also include Capital redemption reserve as at the cost of property, plant and equipment not available for use
March 31, 2018, 2019 and 2020 amounting to ` 767, ` Nil and before such date are disclosed under capital work- in-progress.
` 646, respectively, which is not freely available for distribution.
(vii) Business combination, Goodwill, and Intangible assets
h) Dividend
a) Business combination
A final dividend, including tax thereon, on common stock is
recorded as a liability on the date of approval by the shareholders. Business combinations are accounted for using the purchase
An interim dividend, including tax thereon, is recorded as a (acquisition) method. The cost of an acquisition is measured
liability on the date of declaration by the board of directors. as the fair value of the assets transferred, liabilities incurred or
assumed, and equity instruments issued at the date of exchange
i) Buyback of equity shares by the Company. Identifiable assets acquired, and liabilities
The buyback of equity shares and related transaction costs and contingent liabilities assumed in a business combination
are recorded as a reduction of free reserves. Further, capital are measured initially at fair value at the date of acquisition.
redemption reserve is created as an apportionment from Transaction costs incurred in connection with a business
retained earnings. acquisition are expensed as incurred.
(vi) Property, plant and equipment The cost of an acquisition also includes the fair value of any
contingent consideration measured as at the date of acquisition.
a) Recognition and measurement Any subsequent changes to the fair value of contingent
Property, plant and equipment are measured at cost less consideration classified as liabilities, other than measurement
accumulated depreciation and impairment losses, if any. Cost period adjustments, are recognized in the consolidated
includes expenditures directly attributable to the acquisition statement of income.
of the asset. General and specific borrowing costs directly
b) Goodwill
attributable to the construction of a qualifying asset are
capitalized as part of the cost. The excess of the cost of an acquisition over the Company’s
share in the fair value of the acquiree’s identifiable assets and
Capital work- in-progress are measured at cost less liabilities is recognized as goodwill. If the excess is negative,
accumulated impairment losses, if any. a bargain purchase gain is recognized immediately in the
consolidated statement of income. Goodwill is measured at cost
b) Depreciation
less accumulated impairment (if any).
The Company depreciates property, plant and equipment over
the estimated useful life on a straight-line basis from the date Goodwill associated with disposal of an operation that is part
the assets are available for use. Leasehold improvements are of cash-generating unit is measured on the basis of the relative
amortized over the shorter of estimated useful life of the asset values of the operation disposed of and the portion of the cash-
or the related lease term. Term licenses are amortized over their generating unit retained, unless the entity can demonstrate that
respective contract term. Freehold land is not depreciated. some other method better reflects the goodwill associated with
The estimated useful life of assets is reviewed and where the operation disposed of.
appropriate are adjusted, annually. The estimated useful lives of
assets are as follows: c) Intangible assets
Intangible assets acquired separately are measured at cost
Category Useful life of acquisition. Intangible assets acquired in a business
Buildings 28 to 40 years combination are measured at fair value as at the date of
Plant and machinery 5 to 21 years acquisition. Following initial recognition, intangible assets are
Computer equipment and software 2 to 7 years carried at cost less accumulated amortization and impairment
Furniture, fixtures and equipment 3 to 10 years losses, if any.
Vehicles 4 to 5 years
The amortization of an intangible asset with a finite useful life
When parts of an item of property, plant and equipment have reflects the manner in which the economic benefit is expected to
different useful lives, they are accounted for as separate be generated and is included in selling and marketing expenses
items (major components) of property, plant and equipment. in the consolidated statement of income.
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The estimated useful life of amortizable intangibles are reviewed and discounted using the interest rate implicit in the lease, if that rate is
where appropriate are adjusted, annually. The estimated useful lives readily determined, if that rate is not readily determined, the lease
of the amortizable intangible assets for the current and comparative payments are discounted using the incremental borrowing rate
periods are as follows: that the Company would have to pay to borrow funds, including the
consideration of factors such as the nature of the asset and location,
Category Useful life collateral, market terms and conditions, as applicable in a similar
economic environment.
Customer-related intangibles 5 to 15 years
Marketing related intangibles 3 to 7 years After the commencement date, the amount of lease liabilities is
increased to reflect the accretion of interest and reduced for the
(viii) Leases lease payments made.
The Company evaluates each contract or arrangement, whether it
qualifies as lease as defined under IFRS 16. The Company recognizes the amount of the re-measurement of
lease liability as an adjustment to the right-of-use assets. Where
The Company as a lessee the carrying amount of the right-of-use assets is reduced to zero
The Company enters into an arrangement for lease of land, buildings, and there is a further reduction in the measurement of the lease
plant and machinery including computer equipment and vehicles. liability, the Company recognizes any remaining amount of the re-
Such arrangements are generally for a fixed period but may have measurement in consolidated statement of income.
extension or termination options. The Company assesses, whether
Lease liability payments are classified as cash used in financing
the contract is, or contains, a lease, at its inception. A contract is, or
activities in the consolidated statement of cash flows.
contains, a lease if the contract conveys the right to –
The Company as a lessor
(a) control the use of an identified asset,
Leases under which the Company is a lessor are classified as a
(b) obtain substantially all the economic benefits from use of the
finance or operating lease. Lease contracts where all the risks and
identified asset, and
rewards are substantially transferred to the lessee are classified as a
(c) direct the use of the identified asset. finance lease. All other leases are classified as operating lease.
The Company determines the lease term as the non-cancellable
period of a lease, together with periods covered by an option to extend For leases under which the Company is an intermediate lessor, the
the lease, where the Company is reasonably certain to exercise that Company accounts for the head-lease and the sub-lease as two
option. separate contracts. The sub-lease is further classified either as a
finance lease or an operating lease by reference to the RoU asset
The Company at the commencement of the lease contract recognizes arising from the head-lease.
a Right-of-Use (RoU) asset at cost and corresponding lease liability,
except for leases with term of less than twelve months (short term (ix) Inventories
leases) and low-value assets. For these short term and low value Inventories are valued at lower of cost and net realizable value,
leases, the company recognizes the lease payments as an operating including necessary provision for obsolescence. Cost is determined
expense on a straight-line basis over the lease term. using the weighted average method.
The cost of the right-of-use assets comprises the amount of the (x) Impairment
initial measurement of the lease liability, any lease payments
A) Financial assets
made at or before the inception date of the lease plus any initial
direct costs, less any lease incentives received. Subsequently, the The Company applies the expected credit loss model for recognizing
right-of-use assets are measured at cost less any accumulated impairment loss on financial assets measured at amortized cost,
depreciation and accumulated impairment losses, if any. The right- debt instruments classified as FVTOCI, trade receivables, unbilled
of-use assets are depreciated using the straight-line method from receivables, contract assets, finance lease receivables, and other
the commencement date over the shorter of lease term or useful financial assets. Expected credit loss is the difference between the
life of right-of-use assets. The estimated useful lives of right-of-use contractual cash flows and the cash flows that the entity expects to
assets are determined on the same basis as those of property, plant receive, discounted using the effective interest rate.
and equipment.
Loss allowances for trade receivables, unbilled receivables, contract
The Company applies IAS 36 to determine whether a RoU asset assets and finance lease receivables are measured at an amount
is impaired and accounts for any identified impairment loss as equal to lifetime expected credit loss. Lifetime expected credit losses
described in the impairment of non-financial assets below. are the expected credit losses that result from all possible default
events over the expected life of a financial instrument. Lifetime
For lease liabilities at the commencement of the lease, the Company expected credit loss is computed based on a provision matrix which
measures the lease liability at the present value of the lease takes in to account risk profiling of customers and historical credit
payments that are not paid at that date. The lease payments are loss experience adjusted for forward looking information. For other
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financial assets, expected credit loss is measured at the amount on plan assets (excluding interest) are immediately recognized in
equal to twelve months expected credit loss unless there has been other comprehensive income, net of taxes and permanently excluded
a significant increase in credit risk from initial recognition, in which from profit or loss. Instead net interest recognized in profit or loss is
case those are measured at lifetime expected credit loss. calculated by applying the discount rate used to measure the defined
benefit obligation to the net defined benefit liability or asset. The
B) Non-financial assets actual return on the plan assets above or below the discount rate is
The Company assesses long-lived assets such as property, plant and recognized as part of remeasurement of net defined liability or asset
equipment, right-of-use assets and acquired intangible assets for through other comprehensive income, net of taxes.
impairment whenever events or changes in circumstances indicate
that the carrying amount of an asset or group of assets may not be The Company has the following employee benefit plans:
recoverable. If any such indication exists, the Company estimates the
a. Provident fund
recoverable amount of the asset or group of assets.
Employees receive benefits from a provident fund, which is a defined
Goodwill is tested for impairment at least annually at the same time benefit plan. The employer and employees each make periodic
and when events occur or changes in circumstances indicate that contributions to the plan. A portion of the contribution is made
the recoverable amount of the cash generating unit is less than its to the approved provident fund trust managed by the Company
carrying value. The goodwill impairment test is performed at the while the remainder of the contribution is made to the government
level of cash-generating unit or groups of cash -generating units administered pension fund. The contributions to the trust managed
which represents the lowest level at which goodwill is monitored for by the Company is accounted for as a defined benefit plan as the
internal management purposes. Company is liable for any shortfall in the fund assets based on the
government specified minimum rates of return.
The recoverable amount of an asset or cash generating unit is the
higher of its fair value less cost of disposal (FVLCD) and its value-in- b. Superannuation
use (VIU). The VIU of long-lived assets is calculated using projected Superannuation plan, a defined contribution scheme is administered
future cash flows. FVLCD of a cash generating unit is computed by third party fund managers. The Company makes annual
using turnover and earnings multiples. If the recoverable amount contributions based on a specified percentage of each eligible
of the asset or the recoverable amount of the cash generating employee’s salary.
unit to which the asset belongs is less than its carrying amount,
the carrying amount is reduced to its recoverable amount. The c. Gratuity and Pension
reduction is treated as an impairment loss and is recognized in the In accordance with the Payment of Gratuity Act, 1972, applicable for
consolidated statement of income. If at the reporting date, there is Indian companies, the Company provides for a lump sum payment
an indication that a previously assessed impairment loss no longer to eligible employees, at retirement or termination of employment
exists, the recoverable amount is reassessed and the impairment based on the last drawn salary and years of employment with the
losses previously recognized are reversed such that the asset is Company. The gratuity fund is managed by third party fund managers.
recognized at its recoverable amount but not exceeding written down
value which would have been reported if the impairment losses had The Company also maintains pension and similar plans for employees
not been recognized initially. An impairment in respect of goodwill is outside India, based on the country specific regulations. These plans
not reversed. are partially funded, and the funds are managed by third party fund
managers. The plans provide for monthly payout after retirement as
(xi) Employee benefits per salary drawn and service period or for a lumpsum payment as set
Post-employment and pension plans out in rules of each fund.
The Group participates in various employee benefit plans. Pensions
The Company’s obligation in respect of above plans, which are defined
and other post-employment benefits are classified as either
benefit plans, are provided for based on actuarial valuation using
defined contribution plans or defined benefit plans. Under a defined
the projected unit credit method. The Company recognizes actuarial
contribution plan, the Company’s only obligation is to pay a fixed
gains and losses in other comprehensive income, net of taxes.
amount with no obligation to pay further contributions if the fund
does not hold sufficient assets to pay all employee benefits. The d. Termination benefits
related actuarial and investment risks are borne by the employee.
Termination benefits are expensed when the Company can no longer
The expenditure for defined contribution plans is recognized as
withdraw the offer of those benefits.
an expense during the period when the employee provides service.
Under a defined benefit plan, it is the Company’s obligation to e. Short-term benefits
provide agreed benefits to the employees. The related actuarial and
Short-term employee benefit obligations are measured on an
investment risks are borne by the Company. The present value of the
undiscounted basis and are recorded as expense as the related
defined benefit obligations is calculated by an independent actuary
service is provided. A liability is recognized for the amount expected
using the projected unit credit method.
to be paid under short-term cash bonus or profit-sharing plans, if the
Remeasurement comprising actuarial gains or losses and the return Company has a present legal or constructive obligation to pay this
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amount as a result of past service provided by the employee and the reimbursement will be received, and the amount of the receivable
obligation can be estimated reliably. can be measured reliably.
f. Compensated absences Provisions for onerous contracts are recognized when the expected
The employees of the Company are entitled to compensated benefits to be derived by the Company from a contract are lower
absences. The employees can carry forward a portion of the than the unavoidable costs of meeting the future obligations under
unutilized accumulating compensated absences and utilize it the contract. Provisions for onerous contracts are measured at
in future periods or receive cash at retirement or termination of the present value of lower of the expected net cost of fulfilling the
employment. The Company records an obligation for compensated contract and the expected cost of terminating the contract.
absences in the period in which the employee renders the services
(xiv) Revenue
that increases this entitlement. The Company measures the expected
cost of compensated absences as the additional amount that the The Company derives revenue primarily from software development,
Company expects to pay as a result of the unused entitlement that maintenance of software/hardware and related services, business
has accumulated at the end of the reporting period. The Company process services, sale of IT and other products.
recognizes accumulated compensated absences based on actuarial
Effective April 1, 2018, the Company adopted IFRS 15 “Revenue from
valuation using the projected unit credit method. Non-accumulating
Contracts with Customers” using the cumulative catch-up transition
compensated absences are recognized in the period in which the
method, applied to contracts that were not completed as of April 1,
absences occur.
2018. The adoption of the new standard has resulted in a reduction
(xii) Share-based payment transactions of ` 2,279 in opening retained earnings, primarily relating to certain
contract costs because these do not meet the criteria for recognition
Selected employees of the Company receive remuneration in the
as costs to fulfil a contract.
form of equity settled instruments or cash settled instruments, for
rendering services over a defined vesting period and for Company’s Revenues from customer contracts are considered for recognition
performance-based stock options over the defined period. Equity and measurement when the contract has been approved by the
instruments granted are measured by reference to the fair value of the parties to the contract, the parties to contract are committed to
instrument at the date of grant. In cases, where equity instruments perform their respective obligations under the contract, and the
are granted at a nominal exercise price, the intrinsic value on the date contract is legally enforceable.
of grant approximates the fair value. The expense is recognized in the
consolidated statement of income with a corresponding increase to Revenue is recognized upon transfer of control of promised
the share-based payment reserve, a component of equity. products or services to customers in an amount that reflects the
consideration the Company expects to receive in exchange for those
The equity instruments or cash settled instruments generally vest in products or services. To recognize revenues, the Company applies
a graded manner over the vesting period. The fair value determined at the following five step approach: (1) identify the contract with a
the grant date is expensed over the vesting period of the respective customer, (2) identify the performance obligations in the contract,
tranches of such grants (accelerated amortization). The stock (3) determine the transaction price, (4) allocate the transaction price
compensation expense is determined based on the Company’s to the performance obligations in the contract, and (5) recognize
estimate of equity instruments or cash settled instruments that will revenues when a performance obligation is satisfied. When there
eventually vest. is uncertainty as to collectability, revenue recognition is postponed
until such uncertainty is resolved.
Cash Settled instruments granted are re-measured by reference to
the fair value at the end of each reporting period and at the time of At contract inception, the Company assesses its promise to
vesting. The expense is recognized in the consolidated statement of transfer products or services to a customer to identify separate
income with a corresponding increase to financial liability. performance obligations. The Company applies judgement to
determine whether each product or service promised to a customer
(xiii) Provisions
is capable of being distinct, and are distinct in the context of the
Provisions are recognized when the Company has a present obligation contract, if not, the promised products or services are combined
(legal or constructive), as a result of a past event, it is probable that an and accounted as a single performance obligation. The Company
outflow of economic benefits will be required to settle the obligation allocates the arrangement consideration to separately identifiable
and a reliable estimate can be made of the amount of the obligation. performance obligation based on their relative stand-alone selling
price or residual method. Stand-alone selling prices are determined
The amount recognized as a provision is the best estimate of the
based on sale prices for the components when it is regularly sold
consideration required to settle the present obligation at the end of
separately, in cases where the Company is unable to determine the
the reporting period, taking into account the risks and uncertainties
stand-alone selling price the Company uses third-party prices for
surrounding the obligation.
similar deliverables or the Company uses expected cost-plus margin
When some or all of the economic benefits required to settle a approach in estimating the stand-alone selling price.
provision are expected to be recovered from a third party, the
For performance obligations where control is transferred over time,
receivable is recognized as an asset, if it is virtually certain that
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revenues are recognized by measuring progress towards completion on our right to invoice. If our invoicing is not consistent with value
of the performance obligation. The selection of the method to measure delivered, revenues are recognized as the service is performed using
progress towards completion requires judgment and is based on the the percentage of completion method.
nature of the promised products or services to be provided.
In certain projects, a fixed quantum of service or output units is
The method for recognizing revenues and costs depends on the agreed at a fixed price for a fixed term. In such contracts, revenue
nature of the services rendered: is recognized with respect to the actual output achieved till date
as a percentage of total contractual output. Any residual service
A. Time and materials contracts unutilized by the customer is recognized as revenue on completion
Revenues and costs relating to time and materials contracts are of the term.
recognized as the related services are rendered.
iii. Element or Volume based contracts
B. Fixed-price contracts Revenues and costs are recognized as the related services are
i. Fixed-price development contracts rendered.
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contract, the costs generate or enhance resources that will be authorities based on the taxable income for the period. The tax rates
used in satisfying performance obligations in future; and the and tax laws used to compute the current tax amounts are those
costs are expected to be recovered. The asset so recognized is that are enacted or substantively enacted as at the reporting date
amortized on a systematic basis consistent with the transfer of and applicable for the period. While determining the tax provisions,
goods or services to customer to which the asset relates. the Company assesses whether each uncertain tax position is to be
considered separately or together with one or more uncertain tax
• The Company assesses the timing of the transfer of goods or
positions depending upon the nature and circumstances of each
services to the customer as compared to the timing of payments
uncertain tax position. The Company offsets current tax assets and
to determine whether a significant financing component
current tax liabilities, where it has a legally enforceable right to set
exists. As a practical expedient, the Company does not assess
off the recognized amounts and where it intends either to settle on a
the existence of a significant financing component when the
net basis, or to realize the asset and liability simultaneously.
difference between payment and transfer of deliverables is a
year or less. If the difference in timing arises for reasons other b) Deferred income tax
than the provision of finance to either the customer or us, no
Deferred income tax is recognized using the balance sheet approach.
financing component is deemed to exist.
Deferred income tax assets and liabilities are recognized for
• The Company may enter into arrangements with third party deductible and taxable temporary differences arising between
suppliers to resell products or services. In such cases, the the tax base of assets and liabilities and their carrying amount in
Company evaluates whether the Company is the principal (i.e. financial statements, except when the deferred income tax arises
report revenues on a gross basis) or agent (i.e. report revenues on from the initial recognition of goodwill or an asset or liability in a
a net basis). In doing so, the Company first evaluates whether the transaction that is not a business combination and affects neither
Company controls the good or service before it is transferred to accounting nor taxable profits or loss at the time of the transaction.
the customer. If Company controls the good or service before it is Deferred income tax assets are recognized to the extent it is probable
transferred to the customer, Company is the principal; if not, the that taxable profit will be available against which the deductible
Company is the agent. temporary differences and the carry forward of unused tax credits
and unused tax losses can be utilized.
• Estimates of transaction price and total costs or efforts are
continuously monitored over the term of the contract and are Deferred income tax liabilities are recognized for all taxable temporary
recognized in net profit in the period when these estimates differences except in respect of taxable temporary differences
change or when the estimates are revised. Revenues and the that is expected to reverse within the tax holiday period, taxable
estimated total costs or efforts are subject to revision as the temporary differences associated with investments in subsidiaries,
contract progresses. associates and foreign branches where the timing of the reversal of
(xv) Finance expenses the temporary difference can be controlled and it is probable that the
temporary difference will not reverse in the foreseeable future.
Finance expenses comprises interest cost on borrowings and lease
liabilities, gains or losses arising on re-measurement of financial The carrying amount of deferred income tax assets is reviewed at
assets measured at FVTPL, gains/ (losses) on translation or each reporting date and reduced to the extent that it is no longer
settlement of foreign currency borrowings and changes in fair value probable that sufficient taxable profit will be available to allow all or
and gains/ (losses) on settlement of related derivative instruments. part of the deferred income tax asset to be utilized.
Borrowing costs that are not directly attributable to a qualifying
asset are recognized in the consolidated statement of income using Deferred income tax assets and liabilities are measured at the tax
the effective interest method. rates that are expected to apply in the period when the asset is
realized, or the liability is settled, based on tax rates (and tax laws)
(xvi) Finance and other income that have been enacted or substantively enacted at the reporting
Finance and other income comprise interest income on deposits, date.
dividend income and gains / (losses) on disposal of investments.
Interest income is recognized using the effective interest method. The Company offsets deferred income tax assets and liabilities,
Dividend income is recognized when the right to receive payment is where it has a legally enforceable right to offset current tax assets
established. against current tax liabilities, and they relate to taxes levied by the
same taxation authority on either the same taxable entity, or on
(xvii) Income tax different taxable entities where there is an intention to settle the
Income tax comprises current and deferred tax. Income tax expense current tax liabilities and assets on a net basis or their tax assets
is recognized in the consolidated statement of income except to and liabilities will be realized simultaneously.
the extent it relates to a business combination, or items directly
recognized in equity or in other comprehensive income. (xviii) Earnings per share
Basic earnings per share is computed using the weighted average
a) Current income tax number of equity shares outstanding during the period adjusted
Current income tax for the current and prior periods are measured for treasury shares held. Diluted earnings per share is computed
at the amount expected to be recovered from or paid to the taxation using the weighted-average number of equity and dilutive equivalent
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shares outstanding during the period, using the treasury stock and the right-of-use asset at its carrying amount as if the
method for options, except where the results would be anti-dilutive. standard had been applied since the commencement date of the
lease, but discounted using the incremental borrowing rate at
The number of equity shares and potentially dilutive equity shares the date of initial application,
are adjusted retrospectively for all periods presented for any splits
and bonus shares issues including for change effected prior to the c) The Company excluded the initial direct costs from measurement
approval of the consolidated financial statements by the Board of of the RoU asset,
Directors. d) The Company does not recognize RoU assets and lease liabilities
for leases with less than twelve months of lease term and low-
(xix) Cash flow statement value assets on the date of initial application.
Cash flows are reported using the indirect method, whereby profit for
the period is adjusted for the effects of transactions of a non-cash The weighted average of discount rate applied to lease liabilities as
nature, any deferrals or accruals of past or future operating cash at April 1, 2019 is 5.7%.
receipts or payments and item of income or expenses associated
On adoption of IFRS 16,
with investing or financing cash flows. The cash from operating,
investing and financing activities of the Company are segregated. a) the Company has recognized right-of-use assets of ` 13,630 and
corresponding lease liability of `15,379,
(xx) Assets held for sale
b) the net carrying value of assets procured under the finance lease
Sale of business is classified as held for sale, if their carrying amount
of ` 1,243 (gross carrying and accumulated depreciation value
is intended to be recovered principally through sale rather than
of ` 3,420 and ` 2,177, respectively) have been reclassified from
through continuing use. The condition for classification as held for
property, plant and equipment to right- of-use assets,
sale is met when disposal business is available for immediate sale
and the same is highly probable of being completed within one year c) the obligations under finance leases of ` 2,002 (non-current
from the date of classification as held for sale. and current obligation under finance leases ` 496 and ` 1,506,
respectively) have been reclassified to lease liabilities,
(xxi) Discontinued operations
d) prepaid rent on leasehold land and other assets, which were
A discontinued operation is a component of the Company’s business
earlier classified under “Other Assets” have been reclassified to
that represents a separate line of business that has been disposed of right-of-use assets by ` 2,222.
or is held for sale, or is a subsidiary acquired exclusively with a view
to resale. Classification as a discontinued operation occurs upon The adoption of the new standard has resulted in a reduction of ` 872
the earlier of disposal or when the operation meets the criteria to be in retained earnings, net of deferred tax asset of ` 138.
classified as held for sale.
During the year ended March 31, 2020, the Company recognized in
(xxii) Disposal of assets the consolidated statement of income –
The gain or loss arising on disposal or retirement of assets is a) Depreciation expense from right-of-use assets of ` 5,911 (Refer
recognized in the consolidated statement of income. to Note 5)
New Accounting standards adopted by the Company: b) Interest expenses on lease liabilities of ` 914
a) The Company will not reassess whether a contract is or contains As of March 31, 2020, the Company is committed to certain leases
a lease. Accordingly, the definition of lease in accordance with amounting to ` 1,399 which have not yet commenced. The term of
IAS 17 and IFRIC-4 will continue to be applied to lease contracts such lease’s ranges from 2 to 8 years.
entered by the Company or modified by the Company before April
1, 2019, Lease payments during the period are disclosed under financing
activities in the consolidated statement of cash flows.
b) The Company has applied a single discount rate to a portfolio
of leases of similar assets in similar economic environment. The comparatives as at and for the year ended March 31, 2019 and
Consequently, the Company has recorded its lease liability using March 31, 2018 have not been retrospectively restated.
the present value of remaining lease payments, discounted using
the incremental borrowing rate at the date of initial application The adoption of IFRS 16 did not have any material impact on the
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Corporate Overview | Management & Board Reports | Financial Statements
Company’s consolidated statement of income and earnings per standards and interpretations that could have potential impact on
share. the consolidated financial statements of the Company are:
The difference between the lease obligation disclosed as of March 31, Amendment to IFRS 3 - Business combination
2019 under IAS 17 and the value of the lease liabilities as of April 1, On October 22, 2018, the IASB issued amendments to IFRS 3,
2019 is primarily on account of practical expedients exercised for low ‘Business Combinations’, in connection with clarification of business
value assets and short term leases as at adoption of the standard, definition, which help in determining whether an acquisition made is
measuring lease liability and discounting the lease liabilities to the of a business or a group of assets. The amendment added a test that
present value in accordance with IFRS 16. makes it easier to conclude that a company has acquired a group of
assets, rather than a business, if the value of the assets acquired
Particulars Total is substantially all concentrated in a single asset or a group of
Operating lease commitments disclosed as at March ` 19,741 similar assets. These amendments are effective for annual reporting
31, 2019 periods beginning on or after January 1, 2020, with earlier application
permitted. The adoption of amendment to IFRS 3 is not expected to
(Less): Impact of discounting on opening lease liability (1,954)
have any impact on the consolidated financial statements of the
(Less): Short-term leases not recognized as a liability (1,675) Company.
(Less): Low-value leases not recognized as a liability (64)
Amendment to IFRS 9, IAS 39 and IFRS 7 – Interest Rate Benchmark
(Less): Leases commencing after 1st April, but entered (669)
Reform
into on or before 31st March
On September 26, 2019, the IASB amended some of its requirements
Lease liability recognized as at April 1, 2019 ` 15,379
for hedge accounting. The amendments provide relief from potential
effects of the uncertainty caused by the IBOR reform. In addition, the
IFRIC 23 – Uncertainty over Income Tax treatments
amendments require companies to provide additional information
The IASB has clarified the accounting for uncertainties in income
to investors about their hedging relationships that are directly
taxes. The interpretation is to be applied to the determination of
affected by these uncertainties. These amendments are effective
taxable profit (tax loss), tax bases, unused tax losses, unused tax
for annual reporting periods beginning on or after January 1, 2020,
credits and tax rates, when there is uncertainty over income tax
with earlier application permitted. The Company does not expect
treatments under IAS 12. The adoption of IFRIC 23 did not have any
the amendment to have any significant impact on its consolidated
material impact on the consolidated financial statements of the
financial statements.
Company.
Amendment to IAS 1 and IAS 8 – Definition of Material
Amendment to IAS 19 - Plan Amendment, Curtailment or
On October 30, 2018, the IASB issued Amendment to IAS 1
Settlement
Presentation of Financial Statements and IAS 8 Accounting
The IASB has issued amendments to IAS 19, ‘Employee Benefits’,
Policies, Changes in Accounting Estimates and Errors to update
in connection with accounting for plan amendments, curtailments
a new definition of material in IAS 1. The amendments clarify the
and settlements requiring an entity to determine the current service
definition of “material” and how it should be applied by including
costs and the net interest for the period after the remeasurement
in the definition guidance that until now has featured elsewhere
using the assumptions used for the remeasurement; and determine
in IFRS Standards. The new definition clarifies that, information
the net interest for the remaining period based on the remeasured
is considered material if omitting, misstating, or obscuring such
net defined benefit liability or asset. The adoption of amendment to
information, could reasonably be expected to influence the decisions
IAS 19 did not have any material impact on consolidated financial
that the primary users of general-purpose financial statements
statements of the Company.
make on the basis of those financial statements. The definition of
material in IAS 8 has been replaced by a reference to the definition of
Amendment to IAS 12 – Income Taxes
material in IAS 1. In addition, the IASB amended other Standards and
The IASB had issued amendments to IAS 12 – Income Taxes. The the Conceptual Framework that contain a definition of material or
amendments clarify that an entity shall recognize the income tax refer to the term ‘material’ to ensure consistency. These amendments
consequences of dividends on financial instruments classified as are effective prospectively for annual reporting periods beginning
equity according to where the entity originally recognized those past on or after January 1, 2020, with earlier application permitted. The
transactions or events that generated distributable profits were Company does not expect the amendment to have any material
recognized. The adoption of amendment to IAS 12 did not have any impact on its evaluation of materiality in relation to its consolidated
impact on consolidated financial statements of the Company. financial statements.
New accounting standards not yet adopted by the Company: Amendment to IAS 1 – Presentation of Financial Statements
Certain new standards, amendments to standards and On January 23, 2020, the IASB has issued “Classification of liabilities
interpretations are not yet effective for annual periods beginning as Current or Non-Current (Amendments to IAS 1)” providing a
after April 1 2019 and have not been applied in preparing these more general approach to the classification of liabilities under IAS
consolidated financial statements. New standards, amendments to 1 based on the contractual arrangement in place at the reporting
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Wipro Limited
date. The amendments aim to promote consistency in applying directly to fulfilling contracts. These amendments are effective for
the requirements by helping companies to determine whether, in annual reporting periods beginning on or after January 1, 2022, with
the statement of financial position, debt and other liabilities with earlier application is permitted. The Company is currently evaluating
an uncertain settlement date should be classified as current (due the impact of amendment to IAS 37 on its consolidated financial
or potentially due to be settled within one year) or non-current. statements.
The amendments also clarified the classification requirements
for debt a company might settle by converting it into equity. These Amendment to IFRS 16 – Leases
amendments are effective for annual reporting periods beginning on
On May 15, 2020, the IASB issued amendments to IFRS 16, “Leases”,
or after January 1, 2022 and are to be applied retrospectively, with
provide lessees with an exemption from assessing whether a COVID-
earlier application permitted. The Company is currently evaluating
19-related rent concession is a lease modification. The amendments
the impact of amendment to IAS 1 on its consolidated financial
allowed the expedient to be applied to COVID-19-related rent
statements.
concessions to payments originally due on or before 30 June 2021
Amendment to IAS 37 – Onerous Contracts – Cost of Fulfilling a and also require disclosure of the amount recognized in profit or
Contract loss to reflect changes in lease payments that arise from COVID-
On May 14, 2020, the IASB issued “Onerous Contracts — Cost 19-related rent concessions. The reporting period in which a lessee
of Fulfilling a Contract (Amendments to IAS 37)”, amending the first applies the amendment, it is not required to disclose certain
standard regarding costs a company should include as the cost of quantitative information required under IAS 8. These amendments
fulfilling a contract when assessing whether a contract is onerous. are effective for periods beginning on or after June 1, 2020, with
The amendment specifies that the “cost of fulfilling” a contract earlier application is permitted. The Company is currently evaluating
comprises the “costs that relate directly to the contract”. Costs the impact of amendment to IFRS 16 on its consolidated financial
that relate directly to a contract can either be incremental costs statements.
of fulfilling that contract or an allocation of other costs that relate
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Furniture
Plant and
Land Buildings fixtures and Vehicles Total
machinery *
equipment
Adjusted balance as at April 1, 2019 ` - ` 6,715 ` 71,011 ` 12,593 ` 682 ` 91,001
Translation adjustment - 32 1,066 91 (2) 1,187
Depreciation and impairment ** - 1,319 8,628 1,556 175 11,678
Disposals - (118) (2,649) (99) (128) (2,994)
As at March 31, 2020 ` - ` 7,948 ` 78,056 ` 14,141 ` 727 ` 100,872
Capital work-in-progress ` 20,348
Net carrying value including Capital work-in-progress as at March 31, 2020 ` 81,120
* Including net carrying value of computer equipment and software amounting to ` 16,375 and ` 16,844, as at March 31, 2019 and 2020,
respectively.
** Includes impairment charge on software platform recognized on acquisitions, amounting to Nil, ` 1,480 and Nil, for the year ended March 31,
2018, 2019 and 2020, respectively, is included in cost of revenues in the consolidated statement of income.
5. Right-of-use assets
Category of RoU asset
Plant and ma-
Land Buildings Vehicles Total
chinery *
Gross carrying value:
As at April 1, 2019 ` 2,003 ` 11,502 ` 2,941 ` 649 ` 17,095
Additions - 3,520 1,210 219 4,949
Additions through Business combinations - 364 - - 364
Disposals - (41) (47) (59) (147)
Translation adjustment - 279 132 17 428
As at March 31, 2020 ` 2,003 ` 15,624 ` 4,236 ` 826 ` 22,689
Accumulated depreciation:
Depreciation 27 3,884 1,731 269 5,911
Disposals - (18) (47) (10) (75)
Translation adjustment - 62 37 6 105
As at March 31, 2020 ` 27 ` 3,928 ` 1,721 ` 265 ` 5,941
Net carrying value as at March 31, 2020 ` 16,748
* Includes computer equipment.
The Company is organized by three operating segments: IT Services, IT Products and India State Run Enterprise Services. Goodwill as at
March 31, 2019 and 2020 has been allocated to the IT Services operating segment.
Goodwill recognized on business combinations is allocated to Cash Generating Units (CGUs), within the IT Services operating segment, which
are expected to benefit from the synergies of the acquisitions.
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Wipro Limited
Goodwill has been allocated to the CGUs as at March 31, 2020 as For impairment testing, goodwill is allocated to a CGU representing
follows: the lowest level within the Group at which goodwill is monitored for
internal management purposes, and which is not higher than the
As at
CGUs Company’s operating segment. Goodwill is tested for impairment
March 31, 2020
Banking Financial Services and Insurance (BFSI) ` 19,225 at least annually in accordance with the Company’s procedure for
Healthcare and Life Sciences (Health BU) 55,642 determining the recoverable value of each CGU.
Consumer (CBU) 14,501
The recoverable amount of the CGU is determined on the basis of
Energy, Natural Resources and Utilities (ENU) 15,782
Fair Value Less Cost of Disposal (FVLCD). The FVLCD of the CGU is
Manufacturing (MFG) 11,998
Technology (TECH) 12,821 determined based on the market capitalization approach, using the
Communication (COMM) 1,043 turnover and earnings multiples derived from observable market
` 131,012 data. The fair value measurement is categorized as a level 2 fair value
Following table presents the allocation of goodwill to the CGUs for based on the inputs in the valuation techniques used.
the year ended March 31, 2019:
Based on the above testing, no impairment was identified as at March
As at 31, 2019 and 2020, as the recoverable value of the CGUs exceeded the
CGUs
March 31, 2019
carrying value. Further, none of the CGU’s tested for impairment as
Banking Financial Services and Insurance (BFSI) ` 17,713
at March 31, 2019 and 2020 were at risk of impairment. An analysis
Healthcare and Life Sciences (Health BU) 50,670
of the calculation’s sensitivity to a change in the key parameters
Consumer (CBU) 13,587
Energy, Natural Resources and Utilities (ENU) 15,203 (turnover and earnings multiples), did not identify any probable
Manufacturing (MFG) 8,991 scenarios where the CGU’s recoverable amount would fall below its
Technology (TECH) 9,846 carrying amount.
Communication (COMM) 970
` 116,980 The movement in intangible assets is given below:
Intangible assets
* includes impairment charge on certain intangible assets recognized on acquisitions, amounting to ` 643, ` 838 and ` Nil for the year ended
March 31, 2018, 2019 and 2020, respectively.
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Amortization and impairment expense on intangible assets are International TechneGroup Incorporated, a global digital engineering
included in selling and marketing expenses in the consolidated and manufacturing solutions company, and (c) the acquisition of
statement of income. Rational Interaction, Inc, a digital customer experience management
company. The following table presents the provisional purchase price
As at March 31, 2020, the estimated remaining amortization period allocation:
for intangible assets acquired on acquisition are as follows:
Purchase price
Description
Estimated allocated
Acquisition remaining Net assets ` 907
amortization period Customer related intangibles 4,535
ATCO I-Tek 4.50 years Marketing related intangibles 371
Cellent AG 0.75 – 2.75 years Deferred tax liabilities on intangible assets (213)
Appirio Inc. 1.75 years Total ` 5,600
Vara Infotech Private Limited 6.50 - 9.50 years Goodwill 4,833
International TechneGroup Incorporated 4.50 years Total purchase price ` 10,433
Rational Interaction, Inc. 2.75 - 6.75 years
Other entities 0.25 – 12.25 years Net assets acquired include ` 317 of cash and cash equivalents and
trade receivables valued at ` 831.
7. Business combination
The goodwill of ` 4,833 comprises value of acquired workforce
Summary of material acquisitions during the year ended March 31, and expected synergies arising from the business combinations.
2018 is given below: The goodwill was allocated to IT Services segment and is partially
deductible for income tax purposes in India and United States.
During the year ended March 31, 2018, the Company has completed
four business combinations (which individually and in aggregate are The pro-forma effects of these business combinations on the
not material) for a total consideration of ` 6,924. These transactions Company’s results were not material.
include (a) the acquisition of IT service provider which is focused
on Brazilian markets, (b) the acquisition of a design and business
strategy consultancy firm based in United States, and (c) the 8. Investments
acquisition of intangible assets, assembled workforce and a multi- Investments consist of the following:
year service agreement which qualify as business combination.
As at March 31,
The following table presents the allocation of purchase price:
2019 2020
Non-current
Purchase price
Description Financial instruments at FVTOCI
allocated
Net assets ` 5 Equity instruments ` 6,916 ` 9,297
Customer related intangibles 5,565 Financial instruments at amortized cost
Other intangible assets 169 Inter corporate and term deposits * - 5
Total ` 5,739 ` 6,916 ` 9,302
Goodwill 1,185 Current
Total purchase price ` 6,924 Financial instruments at FVTPL
Investments in liquid and short-term
The goodwill of ` 1,185 comprises value of acquired workforce and ` 13,960 ` 14,795
mutual funds
expected synergies arising from the acquisition. The goodwill was
Financial instruments at FVTOCI
allocated to IT Services segment and is partially deductible for United
States federal income tax purpose. Commercial paper, Certificate of
185,048 155,587
deposits and bonds
Net assets acquired include ` 58 of cash and cash equivalents and Financial instruments at amortized cost
trade receivables valued at ` 215. Inter corporate and term deposits * 21,708 19,253
` 220,716 ` 189,635
Summary of material acquisitions during the year ended March 31,
Total ` 227,632 ` 198,937
2020 is given below:
During the year ended March 31, 2020, the Company has completed * These deposits earn a fixed rate of interest. Term deposits include
three business combinations (which both individually and in non- current and current deposits in lien with banks primarily on
aggregate are not material) for a total consideration of ` 10,433. These account of term deposits held as margin money deposits against
include (a) taking over customer contracts, leased facilities, assets guarantees amounting to ` 5, and ` 796, respectively (March 31,
and employees of Vara Infotech Private Limited, (b) the acquisition of 2019: Term deposits current of ` 463).
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Wipro Limited
Investments accounted for using the equity method 11. Cash and cash equivalents
Cash and cash equivalents as at March 31, 2018, 2019 and 2020,
The Company has no material associates as at March 31, 2019 and
consist of cash and balance in deposits with banks. Cash and cash
2020. The aggregate summarized financial information in respect of
equivalents consist of the following:
the Company’s immaterial associates that are accounted for using
the equity method is set forth below: As at March 31,
2018 2019 2020
As at March 31, Cash and bank balances ` 23,300 ` 41,966 ` 34,087
2019 2020 Demand deposits with banks * 21,625 116,563 110,412
Carrying amount of the Company’s ` 1,235 ` 1,383 ` 44,925 ` 158,529 ` 144,499
interest in associates accounted for
* These deposits can be withdrawn by the Company at any time
using the equity method
without prior notice and without any penalty on the principal.
Cash and cash equivalents consist of the following for the purpose
For the year ended March 31, of the cash flow statement:
2018 2019 2020
As at March 31,
Company’s share of net ` 11 ` (43) ` 29 2018 2019 2020
profit /(loss) of associates Cash and cash equivalents (as
accounted for using ` 44,925 ` 158,529 ` 144,499
above)
the equity method in Bank overdrafts (3,999) (4) (395)
consolidated statement of ` 40,926 ` 158,525 ` 144,104
income
12. Other financial assets
9. Trade receivables As at March 31,
As at March 31, 2019 2020
2019 2020 Non-current
Trade receivables ` 119,686 ` 124,460 Security deposits ` 1,436 ` 1,581
Interest receivables 1,139 1,139
Allowance for lifetime expected credit
(14,824) (13,937) Finance lease receivables 1,794 2,359
loss
Other deposits 777 802
` 104,862 ` 110,523
` 5,146 ` 5,881
Current
Non-current 4,373 6,049 Security deposits ` 1,050 ` 1,127
Current 100,489 104,474 Dues from officers and employees 738 1,040
Finance lease receivables 1,618 2,811
The activity in the allowance for lifetime expected credit loss is Interest receivables 1,789 2,581
given below: Other deposits 33 5
As at March 31, Others 9,383 1,050
2019 2020 ` 14,611 ` 8,614
Balance at the beginning of the year ` 14,570 ` 14,824 ` 19,757 ` 14,495
Additions during the year, net (Refer
980 1,043 Finance lease receivables
to Note 25)
Charged against allowance (772) (2,139) Finance lease receivables consist of assets that are leased to
customers for a contract term normally ranging 1 to 7 years, with
Translation adjustment 46 209 lease payments due in monthly or quarterly installments. Details of
Balance at the end of the year ` 14,824 ` 13,937 finance lease receivables are given below:
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13. Other assets 2020, the Company has unutilized lines of credit aggregating ` 4,260,
U.S. Dollar (U.S.$) 471 million, Canadian Dollar (CAD) 3 million, Saudi
As at March 31,
Riyal (SAR) 128 million, Euro (EUR) 19 million, Great British Pound
2019 2020
Non-current (GBP) 7 million, Chinese Yuan (CNY) 20 million, Qatari Riyal (QAR)
Prepaid expenses ` 6,323 ` 4,535 10 million, Brazilian Real (BRL) 1 million, Mexican Peso (MXN) 33
Costs to obtain contract* 4,212 4,030 million, and Indonesian Rupiah (IDR) 13,000 million. To utilize these
Costs to fulfil contract - 305 unused lines of credit, the Company requires consent of the lender
Others 5,337 3,065 and compliance with certain financial covenants. Significant portion
` 15,872 ` 11,935
of these lines of credit are revolving credit facilities and floating rate
Current
foreign currency loans, renewable on a periodic basis.
Prepaid expenses ` 12,148 ` 9,876
Dues from officers and employees 871 310
Advance to suppliers 3,247 3,121 The Company has non-fund based revolving credit facilities in various
Balance with GST and other authorities 5,543 7,805 currencies equivalent to ` 40,470 and ` 41,597, as at March 31, 2019
Costs to obtain contract* 1,170 1,258 and 2020, respectively, towards operational requirements that can
Others 107 135 be used for the issuance of letters of credit and bank guarantees.
` 23,086 ` 22,505
As at March 31, 2019, and 2020, an amount of ` 22,014, and `
` 38,958 ` 34,440
22,790, respectively, was unutilized out of these non-fund-based
* Amortization during the year ended March 31, 2019 and 2020
amounting to ` 934 and ` 1,237 respectively. facilities.
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Cash and non-cash changes in liabilities arising from financing activities
Non-cash changes
Assets taken Foreign March 31,
April 1, 2018 Cash flow
on finance exchange 2019
lease movements
Borrowings from banks ` 119,689 ` (26,228) ` - ` 3,518 ` 96,979
Bank overdrafts 3,999 (3,995) - - 4
External commercial borrowings 9,777 (10,064) - 287 -
Obligations under finance leases 3,973 (2,234) 14 249 2,002
Loans from other than banks 821 (352) - 13 482
` 138,259 ` (42,873) ` 14 ` 4,067 ` 99,467
Non-cash changes
Additions Foreign March 31,
April 1, 2019 Cash flow IFRS 16
to lease exchange 2020
adoption
liabilities movements
Borrowings from banks ` 96,979 ` (26,138) ` - ` - ` 6,217 ` 77,058
Bank overdrafts 4 391 - - - 395
Obligations under finance leases 2,002 - (2,002) - - -
Loans from other than banks 482 100 - - 7 589
Lease Liabilities - (6,784) 17,381 7,942 659 19,198
` 99,467 ` (32,431) ` 15,379 ` 7,942 ` 6,883 ` 97,240
Significant portion of loans, borrowings and bank overdrafts bear 15. Trade payables and accrued expenses
floating rates of interest, referenced to LIBOR or other similar country Trade payables and accrued expenses consist of the followings:
specific official benchmark interest rates and a spread, determined
based on market conditions. As at March 31,
2019 2020
The terms of the other secured and unsecured loans and borrowings
Trade payables ` 28,527 ` 27,053
also contain certain restrictive covenants primarily requiring the
Accrued expenses 59,777 51,076
Company to maintain certain financial ratios. As at March 31, 2019
and 2020, the Company has met all the covenants under these ` 88,304 ` 78,129
arrangements.
16. Other financial liabilities
Obligations under finance leases amounting to ` 2,002 as at March As at March 31,
31, 2019 were secured by underlying property, plant and equipment.
2019 2020
Interest expense on loans, borrowings and bank overdrafts was ` Non-current
3,045, ` 4,058, and ` 3,166 for the year ended March 31, 2018, 2019 Cash Settled ADS RSUs
` - ` 146
and 2020, respectively. (Refer to Note 30)
Deposits and others - 5
Details of finance lease payables are given below:
` - ` 151
As at March 31, 2019 Current
Present value Cash Settled ADS RSUs
Minimum ` - ` 350
of minimum (Refer to Note 30)
lease
lease Deposits and others 644 549
payments
payment
` 644 ` 899
Not later than one year ` 1,555 ` 1,506
` 644 ` 1,050
Later than one year but not later
than five years 506 496
17. Other liabilities
Total minimum lease payments 2,061 2,002
Less: Amounts representing As at March 31,
interest (59) - 2019 2020
Obligation under finance lease ` 2,002 ` 2,002 Non-current
Non-current finance lease Employee benefits obligations ` 2,083 ` 3,767
payables 496 Others 3,175 3,770
Current finance lease payables 1,506 ` 5,258 ` 7,537
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Year ended March 31, 2019 Year ended March 31, 2020
Provision for Provision for
Others Total Others Total
warranty warranty
Balance at the beginning of the year ` 293 ` 506 ` 799 ` 277 ` 363 ` 640
Additional provision during the year 295 13 308 360 98 458
Provision used during the year (311) (156) (467) (318) (166) (484)
Balance at the end of the year ` 277 ` 363 ` 640 ` 319 ` 295 ` 614
Provision for warranty represents cost associated with providing Offsetting financial assets and liabilities
sales support services which are accrued at the time of recognition of
The following table contains information on other financial assets
revenues and are expected to be utilized over a period of 1 to 2 years.
and trade payable and other liabilities subject to offsetting:
Other provisions primarily include provisions for indirect tax related
contingencies and litigations. The timing of cash outflows in respect
Financial assets
of such provision cannot be reasonably determined.
Gross amounts Gross amounts Net amounts of
19. Financial instruments of recognized of recognized recognized other
other financial financial financial assets
Financial assets and liabilities (carrying value / fair value) assets liabilities set off presented in the
As at March 31, in the balance balance sheet
sheet
2019 2020
As at March 31, 2019 ` 154,129 ` (6,630) ` 147,499
Assets:
As at March 31, 2020 ` 157,304 ` (7,077) ` 150,227
Cash and cash equivalents ` 158,529 ` 144,499
Financial liabilities
Investments
Gross amounts Gross amounts Net amounts of
Financial instruments at FVTPL 13,960 14,795
of recognized of recognized recognized trade
Financial instruments at FVTOCI 191,964 164,884 trade payables financial payables and
Financial instruments at Amortized and other liabilities set off other payables
21,708 19,258
cost payables in the balance presented in the
Other financial assets sheet balance sheet
Trade receivables 104,862 110,523 As at March 31, 2019 ` 95,578 ` (6,630) ` 88,948
Unbilled receivables 22,880 25,209 As at March 31, 2020 ` 86,256 ` (7,077) ` 79,179
Other assets 19,757 14,495
For the financial assets and liabilities subject to offsetting or
Derivative assets 5,104 3,025
similar arrangements, each agreement between the Company and
` 538,764 ` 496,688 the counterparty allows for net settlement of the relevant financial
Liabilities: assets and liabilities when both elect to settle on a net basis. In the
Trade payables and other payables absence of such an election, financial assets and liabilities will be
Trade payables and accrued expenses ` 88,304 ` 78,129 settled on a gross basis and hence are not offset.
Lease liabilities - 19,198
Other liabilities 644 1,050 Fair value
Loans, borrowings and bank over- Financial assets and liabilities include cash and cash equivalents,
99,467 78,042
drafts trade receivables, unbilled receivables, finance lease receivables,
Derivative liabilities 1,310 7,369 employee and other advances, eligible current and non-current
` 189,725 ` 183,788 assets, loans, borrowings and bank overdrafts, trade payable and
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accrued expenses, and eligible current liabilities and non-current price and yields prevailing in the market at the reporting date. Fair
liabilities. value of investments in equity instruments classified as FVTOCI is
determined using market and income approaches.
The fair value of cash and cash equivalents, trade receivables,
unbilled receivables, loans, borrowings and bank overdrafts, trade The fair value of derivative financial instruments is determined based
payables and accrued expenses, other current financial assets on observable market inputs including currency spot and forward
and liabilities approximate their carrying amount largely due to the rates, yield curves, currency volatility etc.
short-term nature of these instruments. The Company’s long-term
debt has been contracted at market rates of interest. Accordingly, Fair value hierarchy
the carrying value of such long-term debt approximates fair value.
The table below analyses financial instruments carried at fair value,
Further, finance lease receivables are periodically evaluated
by valuation method. The different levels have been defined as
based on individual credit worthiness of customers. Based on this
follows:
evaluation, the Company records allowance for estimated losses on
these receivables. As at March 31, 2020 and 2019, the carrying value Level 1 – Quoted prices (unadjusted) in active markets for identical
of such receivables, net of allowances approximates the fair value. assets or liabilities.
Investments in liquid and short-term mutual funds, which are Level 2 – Inputs other than quoted prices included within Level 1 that
classified as FVTPL are measured using net asset values at are observable for the asset or liability, either directly (i.e.
the reporting date multiplied by the quantity held. Fair value of as prices) or indirectly (i.e. derived from prices).
investments in commercial papers, certificate of deposits and bonds Level 3 – Inputs for the assets or liabilities that are not based on
classified as FVTOCI is determined based on the indicative quotes of 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:
The following methods and assumptions were used to estimate the rates, interest rate curves and forward rate curves of the underlying.
fair value of the level 2 financial instruments included in the above As at March 31, 2020, the changes in counterparty credit risk had
table. no material effect on the hedge effectiveness assessment for
derivatives designated in hedge relationships and other financial
Derivative instruments (assets and liabilities): The Company instruments recognized at fair value.
enters derivative financial instruments with various counterparties,
primarily banks with investment grade credit ratings. Derivatives Investment in commercial papers, certificate of deposits and
valued using valuation techniques with market observable inputs bonds: Fair value of these instruments is derived based on the
are mainly interest rate swaps, foreign exchange forward contracts indicative quotes of price and yields prevailing in the market as at
and foreign exchange option contracts. The most frequently applied reporting date.
valuation techniques include forward pricing, swap models and
Black Scholes models (for option valuation), using present value The following methods and assumptions were used to estimate the
calculations. The models incorporate various inputs including the fair value of the level 3 financial instruments included in the above
credit quality of counterparties, foreign exchange spot and forward table.
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Investment in equity instruments: Fair value of these instruments is determined using market and income approaches.
As at March 31, 2019 and 2020, 0.5 percentage point increase/(decrease) in the unobservable inputs used in fair valuation of other Level 3
assets does not have a significant impact in its value.
313
Wipro Limited
As at March 31,
2019 2020
Notional Fair value Notional Fair value
Range forward option contracts USD 1,067 ` 1,149 USD 474 ` (1,057)
£ 191 ` 68 £ 98 ` (13)
€ 153 ` 349 € 39 ` 85
AUD 56 ` 39 AUD - -
Interest rate swaps USD 75 ` (11) USD - -
Non-designated derivative instruments
Sell : Forward contracts * USD 1,182 ` 1,359 USD 1,314 ` (3,116)
€ 32 ` 55 € 59 ` 34
£ 1 ` (1) £ 81 ` 112
AUD 82 ` 28 AUD 56 ` 115
SGD 11 ` 1 SGD 7 ` 8
ZAR 56 ` 14 ZAR 17 ` 1
CAD 56 ` 40 CAD 51 ` 153
SAR 123 ` (1) SAR 60 ` (1)
AED 9 ^ AED - -
PLN 38 ` 15 PLN 34 ` 13
CHF 10 ^ CHF 7 ` 4
QAR 3 ` (1) QAR 19 ` (8)
TRY 28 ` 12 TRY 30 ` 31
NOK 29 ` 4 NOK 19 ` 16
OMR 1 ` (1) OMR 2 ` 1
SEK 35 ` 5 SEK 13 ` 4
MYR - - MYR 20 ` 1
JPY - - JPY 325 ^
Range forward option contracts USD 150 ` 161 USD - -
€ 31 ` 12 € - -
£ 71 ` 57 £ - -
Buy : Forward contracts USD 730 ` (971) USD 480 ` 972
JPY 154 ^ JPY - -
MXN 9 ^ MXN 11 ` (9)
DKK 75 ` (13) DKK 9 ^
` 3,794 ` (4,344)
* USD 1,182 and USD 1,314 includes USD/PHP sell forward of USD 117 and USD 176 as at March 31, 2019 and 2020, respectively.
^ Value is less than ` 1
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 March 31,
2019 2020
Balance as at the beginning of the year ` (143) ` 3,019
*Includes net gain/(loss) reclassified to revenue (March 31, 2019: ` 2,585, March 31, 2020: ` (4,761)) and cost of revenues (March 31, 2019:
` (498), March 31, 2020: ` 1,379).
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The related hedge transactions for balance in cash flow hedging department, which evaluates and exercises independent control
reserves as at March 31, 2020 are expected to occur and be over the entire process of market risk management. The corporate
reclassified to the consolidated statement of income over a period treasury department recommends risk management objectives
of three years. and policies, which are approved by senior management and Audit
Committee. The activities of this department include management
As at March 31, 2019 and 2020 there were no significant gains or
of cash resources, implementing hedging strategies for foreign
losses on derivative transactions or portions thereof that have
currency exposures, borrowing strategies, and ensuring compliance
become ineffective as hedges or associated with an underlying
with market risk limits and policies.
exposure that did not occur.
Foreign currency risk
Sale of financial assets
The Company operates internationally, and a major portion of its
From time to time, in the normal course of business, the Company
business is transacted in several currencies. Consequently, the
transfers accounts receivables, unbilled receivables, net investment
Company is exposed to foreign exchange risk through receiving
in finance lease receivables (financials assets) to banks. Under the
payment for sales and services in the United States and elsewhere
terms of the arrangements, the Company surrenders control over
and making purchases from overseas suppliers in various foreign
the financial assets and transfer is without recourse. Accordingly,
currencies. The exchange rate risk primarily arises from foreign
such transfers are recorded as sale of financial assets. Gains and
losses on sale of financial assets without recourse are recorded at exchange revenue, receivables, cash balances, forecasted cash flows,
the time of sale based on the carrying value of the financial assets payables and foreign currency loans and borrowings. A significant
and fair value of servicing liability. The incremental impact of such portion of the Company’s revenue is in the U.S. Dollar, the United
transactions on our cash flow and liquidity for the year ended March Kingdom Pound Sterling, the Euro, the Canadian Dollar and the
31, 2018, 2019 and 2020 is not material. Australian Dollar, while a large portion of costs are in Indian rupees.
The exchange rate between the rupee and these currencies has
In certain cases, transfer of financial assets may be with recourse. fluctuated significantly in recent years and may continue to fluctuate
Under arrangements with recourse, the Company is obligated in the future. Appreciation of the rupee against these currencies can
to repurchase the uncollected financial assets, subject to limits adversely affect the Company’s results of operations.
specified in the agreement with the banks. These are reflected
as part of loans and borrowings in the consolidated statement of The Company evaluates exchange rate exposure arising from these
financial position. transactions and enters foreign currency derivative instruments
to mitigate such exposure. The Company follows established risk
Financial risk management management policies, including the use of derivatives like foreign
Market Risk exchange forward/option contracts to hedge forecasted cash flows
Market risk is the risk of loss of future earnings, to fair values or to denominated in foreign currency.
future cash flows that may result from a change in the price of a
The Company has designated certain derivative instruments as cash
financial instrument. The value of a financial instrument may change
flow hedges to mitigate the foreign exchange exposure of forecasted
as a result of changes in the interest rates, foreign currency exchange
highly probable cash flows. The Company also designates foreign
rates and other market changes that affect market risk sensitive
currency borrowings as hedge against respective net investments in
instruments. Market risk is attributable to all market risk sensitive
financial instruments including investments, foreign currency foreign operations.
receivables, payables and loans and borrowings.
As at March 31, 2020, a ` 1 increase in the spot exchange rate of the
The Company’s exposure to market risk is a function of investment Indian rupee with the U.S. dollar would result in approximately ` 1,972
and borrowing activities and revenue generating activities in foreign (consolidated statement of income ` 658 and other comprehensive
currency. The objective of market risk management is to avoid income ` 1,314) decrease in the fair value, and a ` 1 decrease would
excessive exposure of the Company’s earnings and equity to losses. result in approximately ` 1,912 (consolidated statement of income
` 658 and other comprehensive income ` 1,254) increase in the fair
Risk Management Procedures value of foreign currency dollar denominated derivative instruments
The Company manages market risk through a corporate treasury (forward and option contracts).
The below table presents foreign currency risk from non-derivative financial instruments as at March 31, 2019 and 2020:
315
Wipro Limited
As at March 31, 2019
Pound Australian Canadian Other
US $ Euro Total
Sterling Dollar Dollar currencies #
Cash and cash equivalents 21,997 2,884 1,573 1,003 1,928 2,204 31,589
Other assets 8,553 1,173 4,056 1,038 1,033 4,544 20,397
Loans, borrowings and bank
(50,516) (20) (21) (33) - (21) (50,611)
overdrafts
Trade payables, accrued expenses
(27,202) (5,779) (4,646) (1,526) (806) (2,787) (42,746)
and other liabilities
Net assets/ (liabilities) ` 5,472 ` 9,342 ` 11,590 ` 6,085 ` 4,037 ` 9,161 ` 45,687
As at March 31, 2020
Pound Australian Canadian Other
US $ Euro Total
Sterling Dollar Dollar currencies #
Trade receivables ` 42,329 ` 8,860 ` 7,735 ` 3,044 ` 1,388 ` 4,522 ` 67,878
Unbilled receivables 11,127 1,030 2,221 784 291 1,126 16,579
Contract assets 5,517 1,559 2,850 654 146 790 11,516
Cash and cash equivalents 13,481 3,978 1,697 586 1,292 1,733 22,767
Other assets 49,835 4,314 3,283 413 1,447 1,805 61,097
Loans, borrowings and bank
overdrafts (36,578) - - - - - (36,578)
Lease Liabilities (3,393) (2,606) (373) (214) (16) (1,412) (8,014)
Trade payables, accrued expenses
and other liabilities (27,457) (3,419) (3,718) (1,228) (605) (3,087) (39,514)
Net assets/ (liabilities) ` 54,861 ` 13,716 ` 13,695 ` 4,039 ` 3,943 ` 5,477 ` 95,731
# Other currencies reflect currencies such as Swiss Franc, UAE Dirham, Saudi Riyal, Singapore Dollar, etc.
As at March 31, 2019 and 2020, respectively, every 1% increase/ Counterparty risk
decrease in the respective foreign currencies compared to functional Counterparty risk encompasses issuer risk on marketable securities,
currency of the Company would impact results by approximately settlement risk on derivative and money market contracts and credit
` 457 and ` 957, respectively.
risk on cash and time deposits. Issuer risk is minimized by only
buying securities which are at least AA rated in India based on Indian
Interest rate risk
rating agencies. Settlement and credit risk is reduced by the policy of
Interest rate risk primarily arises from floating rate borrowing,
entering transactions with counterparties that are usually banks or
including various revolving and other lines of credit. The Company’s
financial institutions with acceptable credit ratings. Exposure to these
investments are primarily in short-term investments, which do not
risks are closely monitored and maintained within predetermined
expose it to significant interest rate risk. From time to time, the
parameters. There are limits on credit exposure to any financial
Company manages its net exposure to interest rate risk relating to
institution. The limits are regularly assessed and determined based
borrowings by entering into interest rate swap agreements, which
upon credit analysis including financial statements and capital
allows it to exchange periodic payments based on a notional amount
and agreed upon fixed and floating interest rates. Certain borrowings adequacy ratio reviews.
are also transacted at fixed interest rates. If interest rates were to
Liquidity risk
increase by 100 bps as on March 31, 2020, additional net annual
interest expense on floating rate borrowing would amount to Liquidity risk is defined as the risk that the Company will not be able
approximately ` 773. to settle or meet its obligations on time or at a reasonable price.
The Company’s corporate treasury department is responsible for
Credit risk liquidity and funding as well as settlement management. In addition,
Credit risk arises from the possibility that customers may not be able processes and policies related to such risks are overseen by senior
to settle their obligations as agreed. To manage this, the Company management. Management monitors the Company’s net liquidity
periodically assesses the financial reliability of customers, taking position through rolling forecasts on the basis of expected cash
into account the financial condition, current economic trends, flows. As at March 31, 2020, cash and cash equivalents are held with
forward looking macroeconomic information, analysis of historical major banks and financial institutions.
bad debts and ageing of accounts receivable. Individual risk limits
are set accordingly. No single customer accounted for more than The table below provides details regarding the remaining contractual
10% of the accounts receivable as at March 31, 2019 and 2020, or maturities of significant financial liabilities at the reporting date.
revenues for the year ended March 31, 2018, 2019 and 2020. There is The amounts include estimated interest payments and exclude the
no significant concentration of credit risk. impact of netting agreements, if any.
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* Includes future cash outflow towards estimated interest on borrowings and lease liabilities
The balanced view of liquidity and financial indebtedness is stated 21. Income taxes
in the table below. This calculation of the net cash position is used
Income tax expense has been allocated as follows:
by the management for external communication with investors,
analysts and rating agencies: Year ended March 31,
2018 2019 2020
As at March 31,
Income tax expense as per the
2019 2020 ` 22,390 ` 25,242 ` 24,799
consolidated statement of income
Cash and cash equivalents ` 158,529 ` 144,499
Income tax included in other
Investments 220,716 189,635 comprehensive income on:
Loans, borrowings and bank overdrafts (99,467) (78,042)
Unrealized losses on investment
` 279,778 ` 256,092 (644) (65) (230)
securities
Gains/(losses) on cash flow
(1,448) 633 (1,165)
20. Foreign currency translation reserve hedging derivatives
The movement in foreign currency translation reserve attributable to Defined benefit plan actuarial
255 47 (196)
equity holders of the Company is summarized below: gains/(losses)
` 20,553 ` 25,857 ` 23,208
As at March 31,
2019 2020
Income tax expense consists of the following:
Balance at the beginning of the year ` 16,618 ` 15,250
Translation difference related to foreign Year ended March 31,
3,129 8,289
operations, net 2018 2019 2020
Reclassification of foreign currency Current taxes
translation differences to profit and loss
(4,131) - Domestic ` 18,500 ` 17,987 ` 18,437
on sale of hosted Data center services
business Foreign 7,834 5,663 5,887
Reclassification of foreign currency
26,334 23,650 24,324
translation differences to profit and loss on
(79) -
sale of Workday business and Cornerstone Deferred taxes
OnDemand business
Domestic 3 (180) 1,624
Change in effective portion of hedges of
(287) - Foreign (3,947) 1,772 (1,149)
net investment in foreign operations
Total change during the year (1,368) 8,289 (3,944) 1,592 475
Balance at the end of the year ` 15,250 ` 23,539 ` 22,390 ` 25,242 ` 24,799
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Wipro Limited
The reconciliation between the provision of income tax and amounts The components of deferred tax assets and liabilities are as follows:
computed by applying the Indian statutory income tax rate to profit
before taxes is as follows: As at March 31,
2019 2020
Year ended March 31,
Carry forward losses * ` 3,149 ` 2,044
2018 2019 2020
Trade payables, accrued expenses and
Profit before taxes ` 102,474 ` 115,415 ` 122,512 3,713 4,994
other liabilities
Enacted income tax rate in
34.61% 34.94% 34.94% Allowances for lifetime expected credit
India 4,521 3,921
loss
Computed expected tax
35,466 40,326 42,806
expense Minimum alternate tax - 3,425
Effect of: Cash flow hedges - 561
Income exempt from tax (12,878) (18,469) (12,930)
Others 318 -
Basis differences that will
reverse during a tax holiday 167 (796) 480 11,701 14,945
period Property, plant and equipment (1,840) (686)
Income taxed at higher/
(111) (1,002) (3,122) Amortizable goodwill (1,899) (2,166)
(lower) rates
Reversal of deferred tax Intangible assets (2,295) (1,541)
for past years due to rate (1,563) - - Interest income and fair value movement
reduction * (1,455) (626)
of investments
Taxes related to prior years (380) (2,267) (116)
Cash flow hedges (604) -
Changes in unrecognized
239 3,972 (3,898) Contract liabilities (289) (11)
deferred tax assets
Expenses disallowed for tax SEZ Re-investment Reserve (1,132) (6,614)
1,431 3,503 1,785
purpose
Others - (121)
Others, net 19 (25) (206)
Income tax expense ` 22,390 ` 25,242 ` 24,799 (9,514) (11,765)
Effective income tax rate 21.85% 21.87% 20.24% Net deferred tax assets ` 2,187 ` 3,180
* The “Tax Cuts and Jobs Act,” was signed into law on December 22, Amounts presented in consolidated
2017 (‘US tax reforms’) which among other things, makes significant statement of financial position:
changes to the rules applicable to the taxation of corporations, such Deferred tax assets ` 5,604 ` 6,005
as changing the corporate tax rate from 35% to 21% rate effective Deferred tax liabilities ` (3,417) ` (2,825)
January 1, 2018. For the year ended March 2018, the Company took a
positive impact of ` 1,563 on account of re-statement of deferred tax * Includes deferred tax asset recognized on carry forward losses
items pursuant to US tax reforms. pertaining to business combinations.
Credit/
Credit/ (charge)
(charge) in the On account
Movement during the year ended As at April in other Assets held for As at
consolidated of business
March 31, 2018 1, 2017 comprehensive sale March 31, 2018
statement of combination
income *
income
Carry forward losses ` 5,513 ` 133 ` 48 ` - ` - ` 5,694
Trade payables, accrued expenses and
other liabilities 3,151 243 (246) - (41) 3,107
Allowances for lifetime expected
credit loss 2,955 1,564 2 - (22) 4,499
Minimum alternate tax 1,520 (1,446) - - - 74
Property, plant and equipment (4,153) 912 (75) - 1,150 (2,166)
Amortizable goodwill (4,057) 1,522 (53) - 778 (1,810)
Intangible assets (4,511) 1,546 (112) (113) - (3,190)
Interest income and fair value
movement of investments (2,245) (112) 645 - - (1,712)
Cash flow hedges (1,419) - 1,448 - - 29
Contract liabilities (183) (35) (9) - (46) (273)
Others (87) (383) (75) - 142 (403)
Total ` (3,516) ` 3,944 ` 1,573 ` (113) ` 1,961 ` 3,849
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Credit/
Credit/ (charge)
(charge) in the
Movement during the year ended As at April 1, in other Others As at
consolidated
March 31, 2019 2018 comprehensive (Note 36) March 31, 2019
statement of
income *
income
Carry forward losses ` 5,694 ` (2,879) ` 334 ` - ` 3,149
Trade payables, accrued expenses and other
liabilities 3,107 295 (22) 333 3,713
Allowances for lifetime expected credit loss 4,499 9 2 11 4,521
Minimum alternate tax 74 (74) - - -
Property, plant and equipment (2,166) 219 (94) 201 (1,840)
Amortizable goodwill (1,810) 16 (105) - (1,899)
Intangible assets (3,190) 1,076 (181) - (2,295)
Interest income and fair value movement of
investments (1,712) 186 71 - (1,455)
Cash flow hedges 29 - (633) - (604)
Contract liabilities (273) (1) (15) - (289)
SEZ Re-investment Reserve - (1,132) - - (1,132)
Others (403) 693 27 1 318
Total ` 3,849 ` (1,592) ` (616) ` 546 ` 2,187
Credit/
Credit/ (charge)
(charge) in the On account
Movement during the year ended As at April 1, in other As at March
consolidated of business
March 31, 2020 2019 comprehensive 31, 2020
statement of combination
income *
income
Carry forward losses ` 3,149 ` (1,287) ` 182 ` - ` 2,044
Trade payables, accrued expenses and other
liabilities 3,713 1,033 248 - 4,994
Allowances for lifetime expected credit loss 4,521 (591) (9) - 3,921
Minimum alternate tax - 3,425 - - 3,425
Property, plant and equipment (1,840) 1,150 4 - (686)
Amortizable goodwill (1,899) (92) (175) - (2,166)
Intangible assets (2,295) 1,021 (90) (177) (1,541)
Interest income and fair value movement of
investments (1,455) 599 230 - (626)
Cash flow hedges (604) - 1,165 - 561
Contract liabilities (289) 285 (7) - (11)
SEZ Re-investment Reserve (1,132) (5,482) - - (6,614)
Others 318 (536) 97 - (121)
Total ` 2,187 ` (475) ` 1,645 ` (177) ` 3,180
Deferred taxes on unrealized foreign exchange gain / loss relating to asset will be realized. The ultimate realization of deferred tax assets
cash flow hedges, fair value movements in investments and actuarial is dependent upon the generation of future taxable profits during
gains/losses on defined benefit plans are recognized in other the periods in which those temporary differences and tax loss carry-
comprehensive income. Deferred tax liability on the intangible assets forwards become deductible. The Company considers the expected
identified and carry forward losses on acquisitions is recorded by reversal of deferred tax liabilities, projected future taxable income
an adjustment to goodwill. Other than these, the change in deferred and tax planning strategies in making this assessment. Based on
tax assets and liabilities is primarily recorded in the consolidated this, the Company believes that it is probable that the Company will
statement of income. realize the benefits of these deductible differences. The amount of
deferred tax asset considered realizable, however, could be reduced
In assessing the realizability of deferred tax assets, the Company in the near term if the estimates of future taxable income during the
considers the extent to which it is probable that the deferred tax carry-forward period are reduced.
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Wipro Limited
Deferred tax asset amounting to ` 6,769 and ` 8,124 as at March 31, and it is probable that the temporary difference will not reverse in
2019 and 2020, respectively in respect of unused tax losses have the foreseeable future. Accordingly, deferred income tax liabilities
not been recognized by the Company. The tax loss carry-forwards of on cumulative earnings of subsidiaries amounting to ` 52,488 and `
` 24,355 and ` 29,736 as at March 31, 2019 and 2020, respectively, 56,391 as at March 31, 2019 and 2020, respectively and branch profit
relates to certain subsidiaries on which deferred tax asset has tax @ 15% of the US branch profit have not been recognized. Further,
not been recognized by the Company, because there is a lack of it is not practicable to estimate the amount of the unrecognized
reasonable certainty that these subsidiaries may generate future deferred tax liabilities for these undistributed earnings.
taxable profits. Approximately, ` 8,191, and ` 14,429 as at March 31,
2019 and 2020, respectively, of these tax loss carry-forwards is not
currently subject to expiration dates. The remaining tax loss carry- 22. Dividends, Bonus and Buyback of equity shares
forwards of approximately ` 16,164 and ` 15,307 as at March 31, The Company declares and pays dividends in Indian rupees. According
2019 and 2020, respectively, expires in various years through fiscal to the Companies Act, 2013 any dividend should be declared out
2038. of accumulated distributable profits. A Company may, before the
declaration of any dividend, transfer a percentage of its profits for
The Company has recognized deferred tax assets of ` 3,149 that financial year as it may consider appropriate to the reserves.
and ` 2,044 primarily in respect of carry forward losses of its
various subsidiaries as at March 31, 2019 and 2020, respectively. The cash dividends paid per equity share were ` 1, ` 1 and ` 1,
Management’s projections of future taxable income and tax planning during the years ended March 31, 2018, 2019 and 2020, respectively,
strategies support the assumption that it is probable that sufficient including an interim dividend of ` 1, ` 1 and ` 1 for the year ended
taxable income will be available to utilize these deferred tax assets. March 31, 2018, 2019 and 2020, respectively.
The Company has calculated its tax liability for current domestic During the year ended March 31, 2018, the bonus issue in the
taxes after considering MAT. The excess tax paid under MAT proportion of 1:1 i.e.1 (One) bonus equity share of ` 2 each for every
provisions over and above normal tax liability can be carried forward 1 (one) fully paid-up equity share held (including ADS holders) had
and set-off against future tax liabilities computed under normal tax been approved by the shareholders of the Company on June 03, 2017
provisions. The Company was required to pay MAT and accordingly, through Postal Ballot /e-voting. For this purpose, June 14, 2017, was
a deferred tax asset of Nil and ` 3,425 has been recognized in the fixed as the record date. Consequently, on June 15, 2017, the Company
statement of consolidated financial position as at March 31, 2019 allotted 2,433,074,327 shares and ` 4,866 (representing par value of
and 2020, respectively. ` 2 per share) has been transferred from retained earnings to share
capital.
A substantial portion of the profits of the Company’s India operations
are exempt from Indian income taxes being profits attributable During the year ended March 31, 2019, the bonus issue in the
to export operations and profits from units established under the proportion of 1:3 i.e.1 (One) bonus equity share of ` 2 each for every 3
Special Economic Zone Act, 2005 scheme. Units designated in (three) fully paid-up equity shares held (including ADS holders) was
special economic zones providing service on or after April 1, 2005 approved by the shareholders of the Company on February 22, 2019,
will be eligible for a deduction of 100 percent of profits or gains through Postal Ballot /e-voting. Subsequently, on March 8, 2019,
derived from the export of services for the first five years from the Company allotted 1,508,469,180 equity shares to shareholders
commencement of provision of services and 50 percent of such who held equity shares as on the record date of March 7, 2019 and `
profits and gains for a further five years. Certain tax benefits are 3,016 (representing par value of ` 2 per share) was transferred from
also available for a further five years subject to the unit meeting capital redemption reserve, securities premium reserve and retained
defined conditions. Profits from certain other undertakings are also earnings to the share capital.
eligible for preferential tax treatment. The tax holiday period being
currently available to the Company expires in various years through During the year ended March 31, 2018, the Company has concluded
fiscal 2033-34. The expiration period of tax holiday for each unit the buyback of 343,750,000 equity shares as approved by the Board
within a SEZ is determined based on the number of years that have of Directors on July 20, 2017. This has resulted in a total cash outflow
lapsed following year of commencement of production by that unit. of ` 110,000. In line with the requirement of the Companies Act,
The impact of tax holidays has resulted in a decrease of current tax 2013, an amount of ` 1,656 and ` 108,344 has been utilized from
expense of ` 11,635, ` 15,390 and ` 11,963 for the years ended March the securities premium reserve and retained earnings, respectively.
31, 2018, 2019 and 2020, respectively, compared to the effective tax Further, capital redemption reserve (included in other reserves) of
amounts that we estimate the Company would have been required to ` 687 (representing the nominal value of the shares bought back)
pay if these incentives had not been available. The per share effect has been created as an apportionment from retained earnings.
of these tax incentives for the years ended March 31, 2018, 2019 and Consequent to such buyback, share capital has reduced by ` 687.
2020 was ` 1.84, ` 2.56, and ` 2.05, respectively.
During the year ended March 31, 2020, the Company has concluded
Deferred income tax liabilities are recognized for all taxable the buyback of 323,076,923 equity shares as approved by the Board
temporary differences except in respect of taxable temporary of Directors on April 16, 2019. This has resulted in a total cash outflow
differences associated with investments in subsidiaries where the of ` 105,000. In line with the requirement of the Companies Act, 2013,
timing of the reversal of the temporary difference can be controlled an amount of ` 105,000 has been utilized from retained earnings.
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Further, capital redemption reserve (included in other reserves) of A receivable is a right to consideration that is unconditional. A right
` 646 (representing the nominal value of the shares bought back) to consideration is unconditional if only the passage of time is
has been created as an apportionment from retained earnings. required before payment of that consideration is due. For example,
Consequent to such buyback, share capital has reduced by ` 646. the Company recognizes a receivable for revenues related to time
and materials contracts or volume-based contracts. The Company
23. Additional capital disclosures presents such receivables as part of unbilled receivables at their net
The key objective of the Company’s capital management is to ensure estimated realizable value. The same is tested for impairment as per
that it maintains a stable capital structure with the focus on total the guidance in IFRS 9 using expected credit loss method.
equity to uphold investor, creditor, and customer confidence and to
ensure future development of its business. The Company’s focus is Contract liabilities: During the year ended March 31, 2019, the
to keep strong total equity base to ensure independence, security, as Company recognized revenue of ` 14,570 arising from opening
well as a high financial flexibility for potential future borrowings, if unearned revenue as at April 1, 2018. During the year ended March
required without impacting the risk profile of the Company. 31, 2020, the Company recognized revenue of ` 21,193 arising from
contract liabilities as at March 31, 2019.
The Company’s goal is to continue to be able to return excess liquidity
to shareholders by continuing to distribute annual dividends in future Contract assets: During the year ended March 31, 2019, ` 13,558 of
periods. The amount of future dividends/ buyback of equity shares unbilled revenue pertaining to fixed-price development contracts
will be balanced with efforts to continue to maintain an adequate (balance as at April 1, 2018: ` 17,469), has been reclassified to
liquidity status. receivables on completion of milestones. During the year ended
March 31, 2020, ` 13,068 of contract assets pertaining to fixed-
The capital structure as at March 31, 2019 and 2020 was as follows: price development contracts has been reclassified to receivables on
completion of milestones.
As at March 31,
% Contract assets and liabilities are reported in a net position on a
2019 2020
Change contract by contract basis at the end of each reporting period.
Equity attributable to the
equity shareholders of the ` 568,116 ` 557,458 -1.88% B. Remaining Performance Obligations
Company
Revenue allocated to remaining performance obligations represents
As percentage of total capital 85% 85% contracted revenue that has not yet been recognized, which includes
Current loans, borrowings and contract liabilities and amounts that will be invoiced and recognized
71,099 73,202
bank overdrafts as revenue in future periods. Applying the practical expedient, the
Long-term loans and Company has not disclosed its right to consideration from customers
28,368 4,840
borrowings in an amount that corresponds directly with the value to the
Lease liabilities - 19,198 customer of the Company’s performance completed to date, which
Total loans, borrowings and are contracts invoiced on time and material basis and volume based.
bank overdrafts and lease ` 99,467 ` 97,240 -2.24%
As at March 31, 2019, the aggregate amount of transaction price
liabilities
allocated to remaining performance obligations, other than those
As percentage of total capital 15% 15%
meeting the exclusion criteria above, was ` 373,879 of which
Total capital ` 667,583 ` 654,698 -1.93% approximately 59% is expected to be recognized as revenues
Loans and borrowings represent 15 % and 15% of total capital as at within two years, and the remainder thereafter. This includes
March 31, 2019 and 2020, respectively. The Company is not subjected contracts with a substantive enforceable termination penalty if
to any externally imposed capital requirements. the contract is terminated without cause by the customer, based
on an overall assessment of the contract carried out at the time of
inception. Historically, customers have not terminated contracts
24. Revenue without cause.
Year ended March 31, As at March 31, 2020, the aggregate amount of transaction price
2018 2019 2020 allocated to remaining performance obligations, other than those
Rendering of services ` 524,543 ` 571,301 ` 598,550 meeting the exclusion criteria above, was ` 360,033 of which
approximately 62% is expected to be recognized as revenues within
Sales of products 20,328 14,544 11,682
two years, and the remainder thereafter. This includes contracts
` 544,871 ` 585,845 ` 610,232 with a substantive enforceable termination penalty if the contract
is terminated without cause by the customer, based on an overall
A. Contract Assets and Liabilities assessment of the contract carried out at the time of inception.
The Company classifies its right to consideration in exchange for Historically, customers have not terminated contracts without
deliverables as either a receivable or a contract asset. cause.
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Wipro Limited
C. Disaggregation of Revenues
The tables below present disaggregated revenues from contracts with customers by business segment, customer location and contract-type.
The Company believes that the below disaggregation best depicts the nature, amount, timing and uncertainty of revenue and cash flows from
economic factors.
Information on disaggregation of revenues for the year ended March 31, 2019 is as follows:
IT Services IT Prod-
ISRE Total
BFSI Health BU CBU ENU TECH MFG COMM Total ucts
A. Revenue
Rendering of services ` 173,516 ` 73,942 ` 88,797 ` 72,329 ` 76,108 ` 46,155 ` 32,489 ` 563,336 ` - ` 7,965 ` 571,301
Sales of products - - - - - - - - 14,544 - 14,544
` 173,516 ` 73,942 ` 88,797 ` 72,329 ` 76,108 ` 46,155 ` 32,489 ` 563,336 ` 14,544 ` 7,965 ` 585,845
B. Revenue by geography
India ` 3,868 ` 2,295 ` 1,006 ` 1,690 ` 1,392 ` 1,534 ` 3,095 ` 14,880 ` 8,154 ` 7,965 ` 30,999
Americas 98,428 57,204 59,262 22,739 54,679 21,541 7,694 321,547 2,112 - 323,659
Europe 46,856 7,591 17,636 29,795 16,441 18,211 7,420 143,950 2,240 - 146,190
Rest of the World 24,364 6,852 10,893 18,105 3,596 4,869 14,280 82,959 2,038 - 84,997
` 173,516 ` 73,942 ` 88,797 ` 72,329 ` 76,108 ` 46,155 ` 32,489 ` 563,336 ` 14,544 ` 7,965 ` 585,845
C. Revenue by nature of contract
Fixed price and volume based ` 89,378 ` 53,462 ` 50,425 ` 51,799 ` 47,055 ` 31,843 ` 19,847 ` 343,809 ` - ` 6,176 ` 349,985
Time and materials 84,138 20,480 38,372 20,530 29,053 14,312 12,642 219,527 - 1,789 221,316
Products - - - - - - - - 14,544 - 14,544
` 173,516 ` 73,942 ` 88,797 ` 72,329 ` 76,108 ` 46,155 ` 32,489 ` 563,336 ` 14,544 ` 7,965 ` 585,845
Information on disaggregation of revenues for the year ended March 31, 2020 is as follows:
IT Services IT
ISRE Total
BFSI Health BU CBU ENU TECH MFG COMM Total Products
A. Revenue
Rendering of services ` 183,368 ` 77,794 ` 96,509 ` 75,958 ` 75,446 ` 47,859 ` 33,655 ` 590,589 ` - ` 7,961 ` 598,550
Sales of products - - - - - - - - 11,682 - 11,682
` 183,368 ` 77,794 ` 96,509 ` 75,958 ` 75,446 ` 47,859 ` 33,655 ` 590,589 ` 11,682 ` 7,961 ` 610,232
B. Revenue by geography
India ` 5,241 ` 2,522 ` 1,025 ` 1,832 ` 942 ` 1,908 ` 2,109 ` 15,579 ` 6,675 ` 7,961 ` 30,215
Americas 107,467 60,245 67,988 24,315 57,092 23,327 9,075 349,509 918 - 350,427
Europe 45,067 7,540 17,275 31,090 14,107 18,547 8,056 141,682 2,390 - 144,072
Rest of the World 25,593 7,487 10,221 18,721 3,305 4,077 14,415 83,819 1,699 - 85,518
` 183,368 ` 77,794 ` 96,509 ` 75,958 ` 75,446 ` 47,859 ` 33,655 ` 590,589 ` 11,682 ` 7,961 ` 610,232
C. Revenue by nature of contract
Fixed price and volume based ` 101,875 ` 49,951 ` 53,575 ` 52,084 ` 49,733 ` 33,793 ` 21,908 ` 362,919 ` - ` 6,415 ` 369,334
Time and materials 81,493 27,843 42,934 23,874 25,713 14,066 11,747 227,670 - 1,546 229,216
Products - - - - - - - - 11,682 - 11,682
` 183,368 ` 77,794 ` 96,509 ` 75,958 ` 75,446 ` 47,859 ` 33,655 ` 590,589 ` 11,682 ` 7,961 ` 610,232
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25. Expenses by nature by the buyer. Units amounting to ` 2,032 are callable by the buyer
if certain business targets committed by the Company are not met
Year ended March 31, over a period of three years. The fair value of these callable units is
estimated to be insignificant as at reporting date. Consequently, the
2018 2019 2020
sale consideration comprises cash consideration of ` 24,358 and
Employee compensation ` 272,223 ` 299,774 ` 326,571 units issued by the buyer amounting to ` 1,734.
Sub-contracting/ technical fees 84,437 94,725 90,521
Cost of hardware and software 18,985 13,567 11,491 Loss of control in subsidiary: During the year ended March 31, 2019,
Travel 17,399 17,768 18,169 the Company has reduced its equity holding from 74% to 11% in
Facility expenses 21,044 22,213 19,733 Wipro Airport IT Services Limited. The loss/ gain on this transaction
Depreciation, amortization and is insignificant.
21,124 19,474 20,862
impairment*
The assets and liabilities associated with these transactions were
Communication 5,353 4,561 4,812
classified as assets held for sale and liabilities directly associated
Legal and professional fees 4,690 4,361 4,733
with assets held for sale amounting to ` 27,201 and ` 6,212
Rates, taxes and insurance 2,400 1,621 3,004 respectively as at March 31, 2018.
Marketing and brand building 3,140 2,714 2,532
Lifetime expected credit loss and pro- Sale of Workday business and Cornerstone OnDemand business:
6,565 980 1,043
vision for deferred contract cost** During the year ended March 31, 2019, the Company has concluded
Miscellaneous expenses*** 4,705 11,736 5,344 the Sale of Workday business and Cornerstone OnDemand business
Total cost of revenues, selling and except in Portugal, France and Sweden.
marketing expenses and general and ` 462,065 ` 493,494 ` 508,815
administrative expenses The calculation of the gain is as shown below:
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Wipro Limited
27. Finance expenses Diluted: Diluted earnings per share is calculated by adjusting the
weighted average number of equity shares outstanding during the
year for assumed conversion of all dilutive potential equity shares.
Year ended March 31,
Employee share options are dilutive potential equity shares for the
2018 2019 2020 Company.
Interest expense ` 3,451 ` 5,616 ` 5,136
Exchange fluctuation on foreign The calculation is performed in respect of share options to determine
2,379 1,759 2,192
currency borrowings, net the number of shares that could have been acquired at fair value
` 5,830 ` 7,375 ` 7,328 (determined as the average market price of the Company’s shares
during the year). The number of shares calculated as above is
28. Finance and other income and Foreign exchange compared with the number of shares that would have been issued
gains/(losses), net assuming the exercise of the share options.
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Annual Report 2019-20
Corporate Overview | Management & Board Reports | Financial Statements
Wipro Employee Stock Option Plans and Restricted Stock Unit Option Plans
A summary of the general terms of grants under stock option plans and restricted stock unit option plans are as follows:
Number of Options
Name of Plan Range of Exercise Price
reserved under the plan
Wipro ADS Restricted Stock Unit Plan (WARSUP 2004 plan) * 59,797,979 US $ 0.03
Wipro Employee Restricted Stock Unit Plan 2005 (WSRUP 2005 plan) * 59,797,979 ` 2
Wipro Employee Restricted Stock Unit Plan 2007 (WSRUP 2007 plan) * 49,831,651 ` 2
Wipro Equity Reward Trust Employee Stock Purchase Plan, 2013 ** 39,546,197 ` 2
Wipro Employee Stock Option plan 2000 (2000 plan) *** 747,474,747 ` 171 - 490
Employees covered under Stock Option Plans and Restricted Stock Unit (“RSU”) Option Plans (collectively “Stock Option Plans”) are granted
an option to purchase shares of the Company at the respective exercise prices, subject to requirements of vesting conditions. These options
generally vest in tranches over a period of two to four years from the date of grant. Upon vesting, the employees can acquire one equity share
for every option.
* The maximum contractual term for these Stock Option Plans and RSU Option Plans is perpetual until the options are available for grant
under the plan.
** The maximum contractual term for these Stock Option Plans is up to May 29, 2023 until the options are available for grant under the plan.
*** The maximum contractual term for these Stock Option Plans is up to July 26, 2020 until the options are available for grant under the plan.
The activity in these stock option plans and restricted stock unit option plan is summarized below:
Year ended March 31,
2018 2019 2020
Range of
Particulars Weighted Weighted Weighted
exercise price
Numbers Average Numbers Average Numbers Average
Exercise Price Exercise Price Exercise Price
Outstanding at the ` 480.20 20,181 ` 480.20 - ` 480.20 - ` 480.20
beginning of ` 2 7,952,083 ` 2 13,543,997 ` 2 17,607,463 ` 2
the year US $ 0.03 5,288,783 US $ 0.03 10,199,054 US $ 0.03 14,446,790 US $ 0.03
` 480.20 - ` 480.20 - ` 480.20 - ` 480.20
Bonus on
` 2 6,968,406 ` 2 4,773,755 ` 2 - ` 2
outstanding (Refer to Note 22)
US $ 0.03 4,077,070 US $ 0.03 3,957,434 US $ 0.03 - US $ 0.03
` 480.20 - ` 480.20 - ` 480.20 - ` 480.20
Granted * ` 2 4,612,400 ` 2 4,607,000 ` 2 5,662,500 ` 2
US $ 0.03 3,897,000 US $ 0.03 4,849,000 US $ 0.03 5,341,000 US $ 0.03
` 480.20 (20,181) ` 480.20 - ` 480.20 - ` 480.20
Exercised ` 2 (5,325,217) ` 2 (2,739,097) ` 2 (4,610,572) ` 2
US $ 0.03 (2,565,976) US $ 0.03 (1,541,803) US $ 0.03 (2,496,125) US $ 0.03
` 480.20 - - - - - 480.20
Modification to Cash Settled RSU’s ** ` 2 - - - - - 2.00
US $ 0.03 - - - - (5,681,966) US $ 0.03
` 480.20 - ` 480.20 - ` 480.20 - ` 480.20
Forfeited and
` 2 (663,675) ` 2 (2,578,192) ` 2 (3,065,201) ` 2
Expired
US $ 0.03 (497,823) US $ 0.03 (3,016,895) US $ 0.03 (3,755,159) US $ 0.03
` 480.20 - ` 480.20 - ` 480.20 - ` 480.20
Outstanding at the
` 2 13,543,997 ` 2 17,607,463 ` 2 15,594,190 ` 2
end of the year
US $ 0.03 10,199,054 US $ 0.03 14,446,790 US $ 0.03 7,854,540 US $ 0.03
` 480.20 - ` 480.20 - ` 480.20 - ` 480.20
Exercisable at the
` 2 1,875,994 ` 2 1,300,781 ` 2 1,502,957 ` 2
end of the year
US $ 0.03 789,962 US $ 0.03 948,877 US $ 0.03 1,212,560 US $ 0.03
As at March 31, 2020, 4,721,388 units (net of units that were exercised or lapsed and forfeited) of Cash Settled RSU were outstanding which
include 63,999 exercisable units. The carrying value of liability towards Cash Settled RSU’s outstanding was ` 496 which includes ` 15 towards
exercisable units as at March 31, 2020.
* Includes 1,097,600, 1,567,000 and 2,461,500 Performance based stock options (RSU) during the year ended March 31, 2018, 2019 and 2020,
respectively. 1,113,600, 1,673,000 and 2,524,600 Performance based stock options (ADS) during the year ended March 31, 2018, 2019 and
2020, respectively. Performance based stock options (RSU) were issued under Wipro Employee Restricted Stock Unit plan 2007 (WSRUP 2007
plan) and Performance based stock options (ADS) were issued under Wipro ADS Restricted Stock Unit Plan (WARSUP 2004 plan).
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Wipro Limited
** Restricted Stock Units arrangement that were modified during 2019 approved cash pay out to its NRI employees in lieu of shares
the year ended March 31, 2020 and upon exercise of vested ADS RSU under the Company’s WARSUP
Pursuant to the Securities Exchange Board of India (“SEBI”) circular 2004 Plan, based on prevailing market price of ADS on the date of
dated October 10, 2019 prohibiting issuance of depository receipts exercise. This change was accounted for as a modification and the
by listed companies to Non-Resident Indians (“NRIs”), the Board fair value on the date of modification of ` 561 has been recognized as
Governance, Nomination and Compensation Committee in November, financial liability with a corresponding adjustment to equity.
The following table summarizes information about outstanding stock options and restricted stock unit option plan :
The weighted-average grant-date fair value of options granted Defined benefit plan actuarial (gains)/ losses recognized in other
during the year ended March 31, 2018, 2019 and 2020 was ` 337.74, comprehensive income include:
` 349.81, and ` 260.65 for each option, respectively. The weighted
Year ended March 31,
average share price of options exercised during the year ended
2018 2019 2020
March 31, 2018, 2019 and 2020 was ` 303.44, ` 325.85, and ` 267.04
Re-measurement of net
for each option, respectively.
defined benefit liability/
(asset)
31. Employee benefits Return on plan assets
excluding interest income ` (18) ` (49) ` 76
a) Employee costs includes
- Loss/(Gain)
Year ended March 31, Actuarial loss/ (gain)
arising from financial (296) 73 749
2018 2019 2020
assumptions
Salaries and bonus ` 261,981 ` 289,005 ` 315,036
Actuarial loss/ (gain)
Employee benefits plans arising from demographic (54) (40) 227
Gratuity and other assumptions
1,532 1,459 1,845
defined benefit plans Actuarial loss/ (gain)
Defined contribution arising from experience (454) (266) 194
7,363 7,372 8,428
plans adjustments
Share based ` (822) ` (282) ` 1,246
1,347 1,938 1,262
compensation
` 272,223 ` 299,774 ` 326,571 b) Defined benefit plans
Defined benefit plans include gratuity for employees drawing salary
The employee benefit cost is recognized in the following line items in in Indian rupees and certain benefits plans in foreign jurisdictions.
the consolidated statement of income: Amount recognized in the consolidated statement of income in
Year ended March 31, respect of defined benefit plans is as follows:
2018 2019 2020
Cost of revenues ` 228,937 ` 251,818 ` 279,356 Year ended March 31,
Selling and marketing 2018 2019 2020
28,070 30,972 30,763 Current service cost ` 1,525 ` 1,434 ` 1,782
expenses
General and administrative Net interest on net defined
15,216 16,984 16,452 7 25 63
expenses benefit liability/(asset)
` 272,223 ` 299,774 ` 326,571 Net gratuity cost/(benefit) ` 1,532 ` 1,459 ` 1,845
Actual return on plan assets ` 501 ` 607 ` 513
326
Annual Report 2019-20
Corporate Overview | Management & Board Reports | Financial Statements
Change in present value of defined benefit obligation is summarized The principal assumptions used for the purpose of actuarial valuation
below: of these defined benefit plans are as follows:
As at March 31, 2019 and 2020, plan assets were primarily invested As at March 31, 2020, every 0.5 percentage point increase/(decrease)
in insurer managed funds. in discount rate will result in (decrease)/increase of defined benefit
obligation by approximately ` (626) and ` 584 respectively (March 31,
The Company has established an income tax approved irrevocable 2019: ` (405) and ` 435 respectively).
trust fund to which it regularly contributes to finance the liabilities
of the gratuity plan. The fund’s investments are managed by certain As at March 31, 2020, every 0.5 percentage point increase/(decrease)
insurance companies as per the mandate provided to them by the in expected rate of salary will result in increase/(decrease) of defined
trustees and the asset allocation is within the permissible limits benefit obligation by approximately ` 353 and ` (329) respectively
prescribed in the insurance regulations. (March 31, 2019: ` 245 and ` (229) respectively).
327
Wipro Limited
c) Provident fund: The principal assumptions used in determining the present value
obligation of interest guarantee under the deterministic approach
The details of fund and plan assets are given below: are as follows:
As at March 31, As at March 31,
2019 2020 2019 2020
Fair value of plan assets ` 53,015 ` 61,397 Discount rate for the term of the
7.00% 6.05%
Present value of defined benefit obligation
(53,015) (61,397)
obligation Average remaining tenure of
8 years 7 years
Net (shortfall)/ excess ` - ` - investment portfolio
Guaranteed rate of return 8.65% 8.50%
The plan assets have been primarily invested in government
securities and corporate bonds.
Country of
Subsidiaries Subsidiaries Subsidiaries
Incorporation
Wipro, LLC USA
Wipro Gallagher Solutions, LLC USA
Opus Capital Markets Consultants, USA
LLC
Wipro Promax Analytics Solutions Americas, LLC USA
Wipro Insurance Solutions, LLC USA
Wipro IT Services, LLC USA
HealthPlan Services, Inc. ** USA
Appirio, Inc. ** USA
Cooper Software, Inc. USA
Infocrossing, LLC USA
Wipro US Foundation USA
International TechneGroup Incorporated ** USA
Rational Interaction, Inc. ** USA
Wipro Overseas IT Services Pvt. India
Ltd
Wipro Japan KK Japan
Wipro Shanghai Limited China
Wipro Trademarks Holding India
Limited
Wipro Travel Services Limited India
Wipro Holdings (UK) Limited U.K.
Designit A/S Denmark
Designit Denmark A/S Denmark
Designit Germany GmbH Germany
Designit Oslo A/S Norway
Designit Sweden AB Sweden
Designit T.L.V Ltd. Israel
Designit Tokyo Ltd. Japan
Designit Spain Digital, S.L. ** Spain
Wipro Europe Limited U.K.
Wipro UK Limited U.K.
Wipro Financial Services UK Limited U.K.
Wipro IT Services S.R.L. Romania
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Country of
Subsidiaries Subsidiaries Subsidiaries
Incorporation
Wipro IT Services SE (formerly U.K.
Wipro Cyprus SE)
Wipro Doha LLC # Qatar
Wipro Technologies SA DE CV Mexico
Wipro Philippines, Inc. Philippines
Wipro Holdings Hungary Korlátolt Hungary
Felelosségu Társaság
Wipro Holdings Investment Korlátolt Hungary
Felelosségu Társaság
Wipro Information Technology Egypt Egypt
SAE
Wipro Arabia Co. Limited * Saudi Arabia
Women’s Business Park Technologies Limited * Saudi Arabia
Wipro Poland SP Z.O.O Poland
Wipro IT Services Poland SP Z.O.O Poland
Wipro Technologies Australia Pty Ltd Australia
Wipro Corporate Technologies Ghana
Ghana Limited
Wipro Technologies South Africa South Africa
(Proprietary) Limited
Wipro Technologies Nigeria Limited Nigeria
Wipro IT Service Ukraine, LLC Ukraine
Wipro Information Technology Netherlands
Netherlands BV.
Wipro Portugal S.A. ** Portugal
Wipro Technologies Limited Russia
Wipro Technology Chile SPA Chile
Wipro Solutions Canada Limited Canada
Wipro Information Technology Kazakhstan LLP Kazakhstan
Wipro Technologies W.T. Sociedad Anonima Costa Rica
Wipro Outsourcing Services (Ireland) Limited Ireland
Wipro Technologies VZ, C.A. Venezuela
Wipro Technologies Peru S.A.C. Peru
Wipro do Brasil Servicos de Tecnologia S.A. Brazil
Wipro do Brasil Technologia Ltda ** Brazil
Wipro Technologies SA Argentina
Wipro Technologies S.R.L. Romania
PT. WT Indonesia Indonesia
Wipro (Thailand) Co. Limited Thailand
Wipro Bahrain Limited Co. S.P.C. Bahrain
Wipro Gulf LLC Sultanate of
Oman
Rainbow Software LLC Iraq
Wipro Networks Pte Limited Singapore
Wipro (Dalian) Limited China
Wipro Technologies SDN BHD Malaysia
Wipro Chengdu Limited China
Wipro IT Services Bangladesh Bangladesh
Limited
Wipro HR Services India Private India
Limited
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Wipro Limited
* 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 Co. Limited and 55% of the equity securities of Women’s Business Park Technologies Limited are held by Wipro Arabia Co. Limited.
# 51% of equity securities of Wipro Doha LLC are held by a local shareholder. However, the beneficial interest in these holdings is with the
Company.
The Company controls ‘The Wipro SA Broad Based Ownership Scheme Trust’, ‘Wipro SA Broad Based Ownership Scheme SPV (RF) (PTY) LTD
incorporated in South Africa and Wipro Foundation in India
** Step Subsidiary details of Wipro Portugal S.A, Wipro do Brasil Technologia Ltda, Designit Spain Digital, S.L, HealthPlan Services, Inc, Appirio,
Inc, International TechneGroup Incorporated and Rational Interaction, Inc. are as follows:
Country of
Subsidiaries Subsidiaries Subsidiaries
Incorporation
Wipro Portugal S.A. Portugal
Wipro Technologies GmbH Germany
Cellent GmbH Germany
Cellent GmbH Austria
Wipro do Brasil Technologia Ltda Brazil
Wipro Do Brasil Sistemetas De Brazil
Informatica Ltd
Designit Spain Digital, S.L. Spain
Designit Colombia S A S Colombia
Designit Peru SAC Peru
HealthPlan Services, Inc. USA
HealthPlan Services Insurance USA
Agency, LLC
International TechneGroup USA
Incorporated
International TechneGroup Ltd. U.K.
ITI Proficiency Ltd Israel
International TechneGroup S.R.L. Italy
Mech Works S.R.L. Italy
Appirio, Inc. USA
Appirio, K.K Japan
Topcoder, LLC. USA
Appirio Ltd Ireland
Appirio Ltd (UK) U.K.
Rational Interaction, Inc. USA
Rational Consulting Australia Pty Ltd Australia
Rational Interaction Limited Ireland
As at March 31, 2020 the Company held 43.7% interest in Drivestream Inc, 33% interest in Denim Group Limited and 33.3% in Denim Group
Management, LLC, accounted for using the equity method.
The list of controlled trusts are:
Name of the entity Country of incorporation
Wipro Equity Reward Trust India
Wipro Foundation India
The other related parties are:
Name of the related parties: Nature
Azim Premji Foundation Entity controlled by Director
Azim Premji Foundation for Development Entity controlled by Director
Hasham Traders Entity controlled by Director
Prazim Traders Entity controlled by Director
Zash Traders Entity controlled by Director
Hasham Investment and Trading Co. Pvt. Ltd Entity controlled by Director
Azim Premji Philanthropic Initiatives Pvt. Ltd Entity controlled by Director
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331
Wipro Limited
Entities controlled by Directors Key Management Personnel
Transaction / balances
2018 2019 2020 2018 2019 2020
Key management personnel *
Remuneration and short-term benefits ` - ` - ` - ` 248 ` 341 ` 354
Other benefits - - - 130 173 178
Balance as at the year end
Receivables ` 39 ` 132 ` 94 ` - ` - ` -
Payables 57 8 23 55 155 166
^ Value is less than ` 1
* Post-employment benefits comprising compensated absences is not disclosed as these are determined for the Company as a whole. Benefits
includes the prorated value of RSU granted to the personnel, which vest over a period of time. Other benefits include share-based compensation
` 124, ` 166, and ` 170, as at March 31, 2018, 2019 and 2020, respectively.
33. Commitments and contingencies deduction under section 10A of the Income Tax Act, 1961 in respect of
profit earned by the Company’s undertaking in Software Technology
Until March 31, 2019, prior to adoption of IFRS 16, the Company had
Park at Bengaluru. The same issue was repeated in the successive
taken office, vehicles and IT equipment under cancellable and non-
assessments for the years ended March 31, 2002 to March 31, 2011
cancellable operating lease agreements that were renewable on a
and the aggregate demand is ` 47,583 (including interest of ` 13,832).
periodic basis at the option of both the lessor and the lessee. The
The appeals filed against the said demand before the Appellate
operating lease agreements extended up to a maximum of fifteen
authorities have been allowed in favor of the Company by the second
years from their respective dates of inception and some of these
appellate authority for the years up to March 31, 2008. Further
lease agreements had price escalation clause. Rental payments
appeals have been filed by the Income tax authorities before the
under operating leases were ` 6,236 and ` 6,490 for the year ended
Hon’ble High Court. The Hon’ble High Court has heard and disposed-
March 31, 2018, and March 31, 2019, respectively.
off majority of the issues in favor of the Company up to years ended
March 31, 2004. Department has filed a Special Leave Petition before
As at March 31,
the Supreme Court of India for the years ended March 31, 2001 to
2019
March 31, 2004.
Not later than one year ` 7,006
Later than one year but not later five years 11,106 On similar issues for years up to March 31, 2000, the Hon’ble High
Later than five years 1,629 Court of Karnataka has upheld the claim of the Company under
` 19,741 section 10A of the Income Tax Act, 1961. For the year ended March 31,
2009, the appeals are pending before Income Tax Appellate Tribunal
Capital commitments: As at March 31, 2019 and 2020, the Company (“ITAT”). For years ended March 31, 2010 and March 31, 2011, the
had committed to spend approximately ` 12,443 and ` 14,011 Dispute Resolution Panel allowed the claim of the Company under
respectively, under agreements to purchase/ construct property section 10A of the Income Tax Act, 1961. The Income tax authorities
and equipment. These amounts are net of capital advances paid in have filed an appeal before the Hon’ble ITAT.
respect of these purchases.
For the year ended March 31, 2013, the Company received the final
Guarantees: As at March 31, 2019 and 2020, performance and assessment order in November 2017 with a demand of ` 3,286
financial guarantees provided by banks on behalf of the Company (including interest of ` 1,166), arising primarily on account of section
to the Indian Government, customers and certain other agencies 10AA issues with respect to exclusion from Export Turnover. The
amount to approximately ` 18,456 and ` 18,655 respectively, as part Company has filed an appeal before Hon’ble ITAT, Bengaluru within
of the bank line of credit. the prescribed timelines.
Contingencies and lawsuits: The Company is subject to legal For the year ended March 31, 2014, the Company received the final
proceedings and claims (including tax assessment orders/ penalty assessment order in September 2018 with a demand of ` 1,030
notices) which have arisen in the ordinary course of its business. (including nil interest), arising primarily on account of transfer
Some of the claims involve complex issues and it is not possible pricing issues. The Company has filed an appeal before the Hon’ble
to make a reasonable estimate of the expected financial effect, if ITAT, Bengaluru within the prescribed timelines.
any, that will result from ultimate resolution of such proceedings.
However, the resolution of these legal proceedings is not likely to For the year ended March 31, 2015, the Company received the final
have a material and adverse effect on the results of operations or the assessment order in October 2019 with an estimated demand
financial position of the Company. The significant of such matters are of ` 1,347 (including nil interest), arising primarily on account of
discussed below. capitalization of wages. The Company has filed an appeal before the
Hon’ble ITAT, Bengaluru within the prescribed timelines.
In March 2004, the Company received a tax demand for the year
ended March 31, 2001 arising primarily on account of denial of For the year ended March 31, 2016, the Company received the draft
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Corporate Overview | Management & Board Reports | Financial Statements
assessment order in December 2019 with an estimated demand offerings to customers organized by industry verticals. Effective
of ` 704 (including nil interest), arising primarily on account of April 1, 2018, consequent to change in organization structure, the
capitalization of wages. The Company has filed the objections before Company reorganized its industry verticals. The Manufacturing
the Dispute Resolution Panel (Bengaluru) within the prescribed (“MFG”) and Technology (“TECH”) business units are split from the
timelines. former Manufacturing & Technology (“MNT”) business unit.
For the year ended March 31, 2007 to year ended March 31, 2012, The revised industry verticals are as follows: Banking, Financial
the Company has received a tax demand of ` 227 (including ` 102 Services and Insurance (“BFSI”), Health Business unit (“Health BU”)
interest) for non-deduction of tax at source on some payments. previously known as Health Care and Life Sciences Business unit
The Company has already deposited the demand under protest. (“HLS”), Consumer Business unit (“CBU”), Energy, Natural Resources
The Company received order issued by ITAT, Bengaluru rejecting the & Utilities (“ENU”), MFG, TECH and Communications (“COMM”).
Company’s appeal. The Company has filed an appeal against the Key service offerings to customers include software application
order with the Hon’ble High Court of Karnataka within the prescribed development and maintenance, research and development services
timelines. The Company has received a favorable order on this issue for hardware and software design, business application services,
from the Hon’ble High Court of Karnataka for the earlier years. analytics, consulting, infrastructure outsourcing services and
business process services.
Income tax demands against the Company amounting to ` 66,441
and ` 77,873 are not acknowledged as debt as at March 31, 2019 Comparative information has been restated to give effect to the
and March 31, 2020, respectively. These matters are pending before above changes.
various Appellate Authorities and the management expects its
position will likely be upheld on ultimate resolution and will not have IT Products: The Company is a value-added reseller of desktops,
a material adverse effect on the Company’s financial position and servers, notebooks, storage products, networking solutions and
results of operations. packaged software for leading international brands. In certain total
outsourcing contracts of the IT Services segment, the Company
The contingent liability in respect of disputed demands for excise delivers hardware, software products and other related deliverables.
duty, custom duty, sales tax and other matters amounts to ` 8,477 Revenue relating to the above items is reported as revenue from the
and ` 8,033 as of March 31, 2019 and March 31, 2020, respectively. sale of IT Products.
However, the resolution of these disputed demands is not likely to
have a material and adverse effect on the results of operations or the ISRE: During the year ended March 31, 2019, the Company has
financial position of the Company. organized ISRE as a separate segment, which was part of IT Services
segment. This segment consists of IT Services offerings to entities or
The Hon’ble Supreme Court of India, through a ruling in February departments owned or controlled by Government of India and/ or any
2019, provided interpretation on the components of Salary on State Governments.
which the Company and its employees are to contribute towards
Provident Fund under the Employee’s Provident Fund Act. Based on Comparative information has been restated to give effect to this
the current evaluation, the Company believes it is not probable that change.
certain components of Salary paid by the Company will be subject
The Chairman of the Company has been identified as the Chief
to contribution towards Provident Fund due to the Supreme Court
Operating Decision Maker (“CODM”) as defined by IFRS 8, “Operating
order. The Company will continue to monitor and evaluate its position
Segments.” The Chairman of the Company evaluates the segments
based on future events and developments.
based on their revenue growth and operating income.
34. Segment information Assets and liabilities used in the Company’s business are not
The Company is organized by the following operating segments: identified to any of the operating segments, as these are used
IT Services, IT Products, and India State Run Enterprise services interchangeably between segments. Management believes that it
segment (“ISRE”). is currently not practicable to provide segment disclosures relating
to total assets and liabilities since a meaningful segregation of the
IT Services: The IT Services segment primarily consists of IT Service available data is onerous.
Information on reportable segment for the year ended March 31, 2018 is as follows:
IT Services IT Prod- Reconcil-
ISRE Total
BFSI Health BU CBU ENU TECH MFG COMM Total ucts ing Items
Revenue ` 144,139 ` 74,136 ` 77,914 ` 67,841 ` 73,947 ` 46,081 ` 33,658 ` 517,716 ` 17,998 ` 10,694 ` (49) ` 546,359
Segment Result 24,549 9,624 12,619 8,097 14,680 7,007 3,236 79,812 362 454 319 80,947
Unallocated 3,347 - - 3,347
Segment Result Total ` 83,159 ` 362 ` 454 ` 319 ` 84,294
Finance expense (5,830)
Finance and other income 23,999
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Wipro Limited
IT Services IT Prod- Reconcil-
ISRE Total
BFSI Health BU CBU ENU TECH MFG COMM Total ucts ing Items
Share of profit/ (loss) of
associates accounted for
using the equity method 11
Profit before tax ` 102,474
Income tax expense (22,390)
Profit for the year ` 80,084
Depreciation, amortization
and impairment ` 21,124
Information on reportable segment for the year ended March 31, 2019 is as follows:
IT Services IT Reconcil-
ISRE Total
BFSI Health BU CBU ENU TECH MFG COMM Total Products ing Items
Revenue ` 175,262 ` 75,081 ` 89,313 ` 72,830 ` 76,591 ` 46,496 ` 32,680 ` 568,253 ` 12,312 ` 8,544 ` (49) ` 589,060
Other operating income - - - - - - - 4,344 - - - 4,344
Segment Result 33,831 8,638 16,828 7,081 15,916 8,327 4,396 95,017 (1,047) (1,829) 283 92,424
Unallocated 3,142 - - 3,142
Segment Result Total ` 102,503 ` (1,047) ` (1,829) ` 283 ` 99,910
Finance expense (7,375)
Finance and other income 22,923
Share of profit/ (loss) of
associates accounted for
using the equity method (43)
Profit before tax ` 115,415
Income tax expense (25,242)
Profit for the year ` 90,173
Depreciation, amortization
and impairment ` 19,474
Information on reportable segment for the year ended March 31, 2020 is as follows:
IT Services IT Reconcil-
ISRE Total
BFSI Health BU CBU ENU TECH MFG COMM Total Products ing Items
Revenue ` 184,457 ` 78,240 ` 97,008 ` 76,443 ` 75,895 ` 48,158 ` 33,840 ` 594,041 ` 11,010 ` 8,400 ` (50) ` 613,401
Other operating income - - - - - - - 1,144 - - - 1,144
Segment Result 34,132 12,027 16,729 12,176 14,312 9,252 5,336 103,964 (282) (1,822) 149 102,009
Unallocated 2,577 - - - 2,577
Segment Result Total ` 107,685 ` (282) ` (1,822) ` 149 ` 105,730
Finance expense (7,328)
Finance and other income 24,081
Share of profit/ (loss) of
associates accounted for
using the equity method 29
Profit before tax ` 122,512
Income tax expense (24,799)
Profit for the year ` 97,713
Depreciation, amortization
and impairment ` 20,862
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:
Year ended March 31,
2018 2019 2020
India ` 43,099 ` 30,999 ` 30,158
Americas * 283,515 325,432 352,319
Europe 138,597 147,074 144,876
Rest of the world 81,148 85,555 86,048
` 546,359 ` 589,060 ` 613,401
* Substantially related to operations in the United States of America.
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No customer individually accounted for more than 10% of the terms primarily relate to IT hardware, software and certain
revenues during the year ended March 31, 2018, 2019 and 2020. transformation services in outsourcing contracts. The finance
income on deferred consideration earned under these contracts
Management believes that it is currently not practicable to provide
is included in the revenue of the respective segment and is
disclosure of geographical location wise assets, since the meaningful
eliminated under reconciling items.
segregation of the available information is onerous.
g) Segment results for ENU and COMM industry vertical for the
Notes: year ended March 31, 2018, are after considering the impact of
provision by ` 3,175 and ` 1,437, respectively, for impairment of
a) “Reconciling items” includes elimination of inter-segment receivables and deferred contract cost. Refer to Note 25.
transactions and other corporate activities.
h) Other operating income of ` Nil, ` 4,344 and ` 1,144 is included
b) Revenue from sale of traded cloud-based licenses is reported as as part of IT Services segment result for the year ended March 31,
part of IT Services revenues. 2018, 2019 and 2020, respectively. Refer to Note 26.
c) Revenue from sale of company owned intellectual properties is i) Segment results for ENU industry vertical for the year ended
reported as part of IT Services revenues March 31, 2019, are after considering the impact of ` 5,141 ($
d) For the purpose of segment reporting, the Company has included 75 million) paid to National Grid on settlement of a legal claim
the impact of “foreign exchange gains / (losses), net” in revenues against the Company. Refer to Note 25
(which is reported as a part of operating profit in the consolidated j) Segment results for Health BU industry vertical for the year
statement of income). ended March 31, 2018 and 2019, are after considering the
e) For evaluating performance of the individual operating impact of impairment charges on certain software platform and
segments, stock compensation expense is allocated on the intangible assets recognized on acquisitions. Refer to Note 25.
basis of straight-line amortization. The differential impact k) Segment results of IT Services segment are after recognition of
of accelerated amortization of stock compensation expense share-based compensation expense ` 1,402, ` 1,841, and ` 1,229
over stock compensation expense allocated to the individual for the year ended March 31, 2018, 2019 and 2020, respectively.
operating segments is reported in reconciling items.
The share-based compensation expense pertaining to other
f) The Company generally offers multi-year payment terms
segments is not material.
in certain total outsourcing contracts. These payment
36. During the year ended March 31, 2019, as part of a customer contract with Alight LLC, Wipro has acquired Alight HR Services India Private
Limited (currently known as Wipro HR Services India Private Limited) for a consideration of ` 8,275 ($ 117 million). Considering the terms and
conditions of the agreement, the Company has concluded that this transaction does not meet the definition of Business under IFRS 3. The
transaction was consummated on September 1, 2018. Net assets taken over was ` 4,128. The excess of consideration paid, and net assets
taken over is accounted as ‘costs to obtain contract’, which will be amortized over the tenure of the contract as reduction in revenues.
The accompanying notes form an integral part of these consolidated financial statements
335
Wipro Limited
Business Responsibility Report (BRR)
Ministry of Corporate Affairs (MCA) revised National Voluntary report on all indicators – essential and leadership – for
Guidelines (NVG) 2011 on Social, Environmental and FY21. This BRR is based on NVG of 2011.
Economic Responsibilities of Business and aligned it with
the national and international developments in sustainability Section A: General Information about the Company
space. This resulted in formulation of National Guidelines on
Responsible Business Conduct (NGRBC) in 2019. 1. Corporate Identity Number (CIN) of the Company
L32102KA1945PLC020800.
At Wipro, the NVG’s Principles and Core elements are
deeply integrated into practices and processes. During the 2. Name of the Company
reporting year, we assessed our position with the new NGRBC Wipro Limited
guidelines, a brief of which is given below:
3. Registered address
• As early adopters of GRI (Global Reporting Initiative) and Doddakannelli, Sarjapur Road, Bengaluru-560035,
IR (Integrated Reporting), our policies and processes
Karnataka, India
cover most elements of the NGRBC – which include
identification and engagement with key stakeholders, 4. Website
materiality determination and adopting a comprehensive https://www.wipro.com
approach that makes responsible business conduct an
integral part of our strategy. 5. E-mail id
sustain.report@wipro.com
• Our policies like the Ecological Sustainability Policy, Health
and Safety Policy, Human Right Policy, Code of Business 6. Financial Year reported
Conduct, Supplier Code of Conduct, Data Privacy and CSR April 1, 2019 to March 31, 2020 (FY 2019-20)
policy are implemented by specific operational guidelines
and procedures under a cross functional charter which 7. Sector(s) that the Company is engaged in (industrial
includes the Risk function, Legal and Compliance, Human activity code-wise)
Resources, Information Security, Operations, Procurement IT Software, Services and related activities. NIC
and Ombuds among others. The tenets of Protect- Code-62013, 62020.
Respect-Remedy are also integrated in implementation.
We ensure appropriate due diligence of these programs 8. List three key products/services that the Company
through process and performance audits - both internal manufactures/provides (as in balance sheet)
and external - through frameworks like ISOO14001, OHSAS Please refer page nos. 31 to 35 of this Annual Report
and GRI among others.
9. Total number of locations where business activity is
• The details of governance by sub-committees of the board undertaken by the Company
are provided as part of our Corporate Governance Report
from page no. 122 of this Annual Report. i. Number of international locations (Provide details of
major 5)
• Communications – transparent disclosure is made through
189 office locations
various public forums like CDP, Annual reporting through
benchmarking frameworks like DJSI, FTSE, MSCI, Vigeo Please refer complete list of locations available on the
among other. In addition, leadership actively evangelizes Company’s website at https://www.wipro.com.
these values-based approaches through regular forums.
ii. Number of national locations
• We have robust internal processes to track performance
44 locations (including 3 data centers)
of different elements in NGRBC at multiple levels of detail
and coverage – many of which are covered in our public Please refer complete list of locations available on the
disclosures. We are currently assessing preparedness to Company’s website at https://www.wipro.com.
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Corporate Overview | Management & Board Reports | Financial Statements
337
Wipro Limited
https://www.wipro.com/content/dam/nexus/en/ • Principle 6: Yes. Our Environmental Management
sustainability/pdf/Human-Rights-Policy.pdf. System is based on the ISO 14001 Standard and
the Green Buildings complies with the international
• Principle 6: Yes. Our Policy on Ecological LEED standard.
Sustainability.
• Principle 7: Not Applicable
• Principle 7: There is no distinct policy on public
advocacy. However, refer to human capital (page • Principle 8: Yes. We subscribe to the UN Global
nos. 53 to 55), natural capital (page nos. 63 to 68) Compact principles. We also disclose details of
and social & relationship capital (page nos. 58 to 62) our programs and key outcomes as part of UNGC
for our engagements through various organizations Communication on Progress.
on material issues.
• Principle 9: Yes. We subscribe to the UN Global
• Principle 8: Wipro does not have a separate policy. Compact principles with respect to this principle.
However, these aspects are covered in the COBC,
the Ecological Sustainability Commitment and d) Is the policy being approved by the Board? If yes, has
policy on Corporate Social Responsibility. it been signed by MD/owner/CEO/ appropriate Board
Director?
• Principle 9: Yes. Wipro’s COBC covers this.
• Principle 1: Yes. The COBC is approved by our Board
b) Has the policy being formulated in consultation with of Directors and endorsed by our Chairman.
the relevant stakeholders?
• Principle 2: Yes. The Policy on Ecological
Yes, for all principles. Sustainability is approved by the Board of Directors
and has been signed by the Chief Executive Officer
c) Does the policy conform to any national/ and Managing Director.
international standards? If yes, specify? (50 words)
• Principle 3: Yes. The COBC is approved by the Board
• Principle 1: Yes. Wipro’s COBC subscribes to the of Directors. Wipro Global Statement on Health and
Foreign Corrupt Practices Act of USA. Our financial Safety has been signed by the President & Chief
reporting, internal controls and procedures and Human Resources Officer.
disclosures are in compliance with Generally • Principle 4: Yes. The COBC is approved by our
Accepted Accounting Principles (GAAP) and Board of Directors and endorsed by our Chairman.
International Financial Reporting Standards (IFRS). The Policy on Corporate Social Responsibility is
approved by the Board of Directors.
• Principle 2: Yes. Wipro has been following
the ISO 14001 Standard and Guidelines for • Principle 5: Yes. The COBC is approved by our Board
our Environmental Management System. For of Directors and endorsed by our Chairman. The
designing our Green Buildings, we have adhered Human rights policy is endorsed by the board.
to the international Leadership in Energy and
• Principle 6: Yes. The COBC is approved by our
Environmental Design (LEED) standard.
Board of Directors and endorsed by our Chairman.
• Principle 3: Yes. We are certified against OHSAS The Policy on Ecological Sustainability has been
18001 Standard across our key locations. signed by the Chief Executive Officer and Managing
Director.
• Principle 4: Yes. We carry out assurance against
• Principle 7: Not Applicable.
Global Reporting Initiative (GRI), IIRC and TCFD
recommendations which have a key stakeholder • Principle 8: Yes. The Policy on Corporate Social
engagement requirement. Responsibility (CSR) is approved by the Board of
Directors. The COBC is approved by our Board of
• Principle 5: The Human Right policy is guided by UN Directors and endorsed by our Chairman. The Policy
Global Compact, UNDHR and the ILO Declaration. on Ecological Sustainability is approved by the
Wipro also supports the UN guiding principles on Board and has been signed by the Chief Executive
Business and Human Rights. Officer and Managing Director.
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Corporate Overview | Management & Board Reports | Financial Statements
• Principle 9: Yes. The COBC is approved by our Board g) Has the policy been formally communicated to all
of Directors and endorsed by our Chairman. The relevant internal and external stakeholders?
Policy on Ecological Sustainability is approved by
the Board of Directors and has been signed by the Yes, the policies have been formally communicated to
Chief Executive Officer and Executive Director. internal and external stakeholders. They are available
online for all stakeholders to refer to in the links
e) Does the Company have a specified committee mentioned earlier.
of the Board/Director/Official to oversee the
implementation of the policy? h) Does the Company have in-house structure to
implement the policy/policies?
The “Board Governance, Nomination and
Compensation Committee” oversees the Yes, for all principles, although Wipro does not have a
implementation of policies and initiatives related policy on public policy and advocacy. The sustainability
to CSR. The CSR policy is available at https:// organization and government relations group oversees
www.wipro.com/content/dam/nexus/en/investor/ the public policy initiatives.
corporate-governance/policies-and-guidelines/
ethical-guidelines/12773-policy-on-corporate- i) Does the Company have a grievance redressal
social-responsibility.pdf. mechanism related to the policy/policies to address
stakeholders’ grievances related to the policy/
f) Indicate the link for the policy to be viewed online. policies?
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Wipro Limited
Internal Audit Function: The internal audit function previous year throughout the value chain, Reduction
carries out an audit of processes and practices across during usage by consumers (energy, water) that has
functions of the organization using the COBC as the been achieved since the previous year?
guideline.
1) Wipro offers a range of IT services and solutions like
3. Governance related to BR cloud based services, managed services, internet
Indicate the frequency with which the Board of of things, digital offerings which significantly help
Directors, Committee of the Board or CEO assess the improve process efficiency and business outcomes
BR performance of the Company. Within 3 months, 3-6 for our customers. All these solutions directly or
months, Annually, More than 1 year. indirectly also improve the environmental impacts
for our customers. However due to the nature of our
Quarterly. services, it is difficult to quantify.
2) The natural capital valuation study (refer page no. 68)
Does the Company publish a BR or a Sustainability
Report? What is the hyperlink for viewing this report? and the green initiatives in ICT hardware procurement
How frequently it is published? cover initiatives across the value chain.
Wipro’s Annual Report includes an articulation 2.3 Does the Company have procedures in place for
of the 9 NVG principles. We also publish an sustainable sourcing (including transportation)? If
annual Sustainability Report which is available at yes, what percentage of your inputs was sourced
https://www.wipro.com/sustainability/. sustainably? Also, provide the details thereof, in about
50 words or so.
Section E: Principle-wise performance
Green Procurement program for ICT Hardware and
Principle 1 Electronic End of Life as part of which we sourced
more than 108,400 Electronic Product Environmental
1.1 Does the policy relating to ethics, bribery and corruption
Assessment Tool (EPEAT) registered electronic products
cover only the Company? COBC extends to the Group/
in calendar year 2019.
Joint Ventures/ Suppliers/Contractors/NGOs/Others?
Yes, COBC extends to all. Please refer page nos. 59 to 60 of this Annual Report.
1.2 How many stakeholder complaints have been received 2.4 Has the Company taken any steps to procure goods
in the past financial year and what percentage was and services from local & small producers, including
satisfactorily resolved by the management? If so, communities surrounding their place of work? If yes,
provide the details thereof, in about 50 words or so. what steps have been taken to improve their capacity
Please refer page no. 75 of this Annual Report. and capability of local and small vendors?
2.2 For each such product, provide the following details Principle 3
in respect of resource use (energy, water, raw material
etc.) per unit of product (optional): Reduction during 3.1 Please indicate the total number of employees.
sourcing/production/distribution achieved since the Please refer page no. 10 of this Annual Report.
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Corporate Overview | Management & Board Reports | Financial Statements
341
Wipro Limited
6.7 Number of show cause/legal notices received from course of the program, and on a quarterly basis with
CPCB/SPCB which are pending (i.e., not resolved to the Chairman. Due to the nature of a large part of our
satisfaction) as on end of Financial Year. work (systemic reform in education, for example), we have
None. not conducted a formal impact assessment of our
initiatives.
Principle 7
8.4 What is your Company’s direct contribution to
7.1 Is your Company a member of any trade and chamber community development projects- Amount in INR and
or association? If yes, name only those major ones that the details of the projects undertaken.
your business deals with.
Please refer page nos. 10 to 11 and 61 to 62 of this
We are members of industry and business Annual Report.
forums in countries where we have significant
8.5 Have you taken steps to ensure that this community
operations. Business Round Table, U.S. Chamber
development initiative is successfully adopted by the
of Commerce (USCC) and Global Business Alliance
community? Please explain in 50 words or so.
(GBA) are the top three by financial contribution. The
total contribution made to BRT, USCC, GBA is $287,500 The nature of the programs supported by Wipro ensures
during FY19-20. successful adoption by communities. Also, Wipro works
with organizations which has a good connect and
7.2 Have you advocated/lobbied through the above presence in the local communities.
associations for the advancement or improvement of
public good? Yes/No. If yes, specify the broad areas For more details, please refer page nos. 61 to 62 of this
(Governance and Administration, Economic Reforms, Annual Report.
Inclusive Development Policies, Energy Security,
Water, Food Security, Sustainable Business Principles, Principle 9
Others).
9.1 What percentage of customer complaints/ consumer
Yes. Through Industry forums and networks cases are pending as on the end of financial year?
in India, we work on a range of issues related We do not have any complaint relating to violation of
to sustainability and community aspects- this principle. However, we would have routine customer
including energy, water, green buildings, bio-diversity, related commercial litigations/disputes.
waste management among others. We also support
flexibility in movement of labor. 9.2 Does the Company display product information on
the product label, over and above what is mandated
Principle 8 as per local laws? Yes/No/N.A./remarks (additional
information).
8.1 Does the Company have specified programs/ initiatives/
projects in pursuit of the policy related to Principle 8? If Not Applicable.
yes, provide the details thereof.
9.3 Is there any case filed by any stakeholder against
Yes. Please refer page nos. 61 to 62 of this Annual Report. the Company regarding unfair trade practices,
irresponsible advertising and/or anti-competitive
8.2 Are the programs/projects undertaken through an
behavior during the last five years and pending as on
in-house team/own foundation/external NGO/
end of financial year? If so, provide the details thereof,
government structures/any other organization?
in about 50 words or so.
Wipro partners with non governmental organizations
working on the areas of our focus. Not Applicable.
8.3 Have you done any impact assessment of your 9.4 Did your Company carry out any consumer survey/
initiative? consumer satisfaction trends?
We do extensive due diligence of our partners and Please refer page nos. 11 and 58 to 59 of this Annual
monitor and evaluate progress/outcomes during the Report.
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Corporate Overview | Management & Board Reports | Financial Statements
Glossary
Sl. Abbreviation Expansion Sl. Abbreviation Expansion
No No
1 AAS As A Service 38 COMM Communications
2 ADR American Depository Receipt 39 COSO Company of Sponsoring Trade way
3 ADS American Depository Share Organisation
4 AGM Annual General Meeting 40 CRM Customer Relationship Management
5 AI Artificial Intelligence 41 CROAMIS Cargo Reservations, Operations,
6 AI/ML Artificial Intelligence/Machine Accounting and Management
Learning Information System
7 APAC Asia Pacific 42 CRS Cybersecurity and Risk Services
8 API Application Programming Interface 43 CSAT Customer Satisfaction
9 AR Augmented Reality 44 CSPs Communication Service Providers
10 ATD Association for Talent Development 45 CSR Corporate Social Responsibility
11 B2B Business to Business 46 CTO Chief Technology Officer
12 BCMS Business Continuity Management 47 CUSIP Committee on Uniform Securities
System Identification Procedures
13 BCP Business Continuity Plan 48 CX Customer Experience
14 BCWI Best Companies for Women in India 49 CXO Chief Executive’s Office
15 BFSI Banking, Financial Services & 50 D&I Diversity & Inclusion
Insurance 51 DAAI Data Analytics and Artificial
16 BI Business Intelligence Intelligence
17 BITS Birla Institute of Technology & Science 52 DDT Dividend distribution tax
18 BPS Business process services 53 DIN Director Identification Number
19 BSE BSE Limited 54 DJSI Dow Jones Sustainability Index
20 BU Business Unit 55 DOP Digital Operations and Platforms
21 C&D Construction and demolition 56 DPA Data process agreements
22 CAD Computer Aided Design 57 DSO Day Sales Outstanding
23 CAGR Compounded Annual Growth Rate 58 DTA Data Transfer agreements
24 CBCMT Corporate Business Continuity Team 59 DX Digital Experience
25 CBU Consumer Business Unit 60 EBITDA Earnings before Interest, Tax,
26 CDAP Cyber Defense Assurance platform Depreciations and Amortization
27 CDP Carbon disclosure Project 61 EDS Electronic Data Systems
28 CDSB Climate disclosures Standards Board 62 EMS Environmental Management System
29 CEO Chief Executive Officer 63 ENU Energy, Natural Resources and
30 CEP Continuous Engagement Program Utilities
31 CFO Chief Financial Officer 64 EPEAT Electronic Product Environmental
32 CGU Cash Generated Units Assessment Tool
33 CII Confederation of Indian Industry 65 EPI Energy Performance Index
34 CIN Corporate Identification Number 66 EPS Earnings Per Share
35 CIS Cloud and Infrastructure Services 67 ERM Enterprise Risk Management
36 CMO Chief Marketing Officer 68 ESG Environmental, Social and
37 COBC Code of Business Conduct Governance
343
Wipro Limited
Sl. Abbreviation Expansion Sl. Abbreviation Expansion
No No
69 ESOP Employee Stock Option 103 ISG Information Services Group
70 ESS Employee Satisfaction Survey 104 ISHRAE The Indian Society of Heating,
71 FCTR Foreign Currency Translation Reserve Refrigerating and Air Conditioning
72 FSSAI Food Safety Standards Authority of Engineers
India 105 ISIN International Securities Identification
Number
73 FTSE Russell Financial Times Stock Exchange
ESG Russell Environmnetal Social and 106 ISO International Standards Organisation
Governance 107 ISRE India State Run Enterprises
74 GAAP Generally Accepted Accounting 108 IT Information Technology
Principles 109 ITI International TechneGroup
75 GDP Gross Domestic Product Incorporated
76 GDPR General Data Protection Regulation 110 ITO IT Operations
77 GDS Global Depository Share 111 IUCN International Union of Conservation
Networks
78 GHG Green House Gases
112 JAC Joint Audit Consortium
79 GIS Global Infrastructure Services
113 KMP Key Managerial Personnel
80 GRI Global Reporting Initiative
114 KPI Key Performance Indicator
81 HLS Healthcare and Life Sciences
115 KRA Key Result Area
82 HPS Health Plan Services
116 LAN Local Area Network
83 HRV High Risk Vendors
117 LATAM Latin America
84 HUF Hindu Undivided Family
118 LED Light Emitting Diode
85 I&D Inclusion and Diversity
119 LEED Leadership in Energy and
86 IAAS Infrastructure as a Service Environmental Designs
87 IAS International Accounting Standard 120 LIBOR London Inter Bank Offered Rate
88 IASB International Accounting Standards 121 M&A Mergers and Acquisitions
Board 122 MAS Modern application Services
89 IBBI Biodiversity Initiative 123 MAT Minimum Alternate Tax
90 ICT Information and communications 124 MCA Ministry of Corporate Affairs
technology
125 MD Managing Director
91 IEPF Investor Education and Protection
126 MD&A Management Discussion and Analysis
Fund
127 MFG Manufacturing and Technology
92 IES Industrial and Engineering Services
128 MICI Most Inclusive Companies Index
93 IFRIC IFRS Interpretations Committee
129 ML Machine Learning
94 IFRS International Financial Reporting
130 MOU Memorandum of Understanding
Standards
131 MPS Managed Print Services
95 IGEF Indo-Germany Energy Forum
132 MRE Median Remuneration of employees
96 IIRC International Integrated Reporting
133 MSCI ESG Morgan Stanley Capital International
Council
Environmental Social and Governance
97 IISc Indian Institute of Science
134 NASSCOM National Association of Software and
98 IIT Indian Institute of Technology Services Companies
99 ILO International Labour Organization 135 NLP Natural Language Processing
100 Ind AS Indian Accounting Standards 136 NPS Net Promoter Score
101 IoT Internet of Things 137 NSE National Stock Exchange of India
102 IP Intellectual Property Limited
344
Annual Report 2019-20
Corporate Overview | Management & Board Reports | Financial Statements
345
Wipro Limited
NOTES
346
Annual Report 2019-20
NOTES
347
Wipro Limited
NOTES
348
Annual Report 2019-20
Corporate Information
Board of Directors Chief Financial Officer Depository for American
Rishad A Premji – Chairman Jatin Pravinchandra Dalal Depository Shares
Azim H Premji – Founder Chairman J.P. Morgan Chase Bank N.A.
Statutory Auditors
Thierry Delaporte (w.e.f. July 6, 2020)
Deloitte Haskins & Sells LLP Registrar and Share Transfer
Ireena Vittal Agents
William Arthur Owens Auditors- IFRS KFin Technologies Private Limited
M K Sharma Deloitte Haskins & Sells LLP
Dr. Patrick J Ennis Registered & Corporate Office
Patrick Dupuis Company Secretary Wipro Limited
M Sanaulla Khan Doddakannelli, Sarjapur Road
Deepak M. Satwalekar (w.e.f. July 1, 2020)
Bengaluru – 560 035, India
Arundhati Bhattacharya (till June 30, 2020)
Ph: +91 (80) 28440011
Fax: +91 (80) 28440054
Website: wipro.com
Wipro Limited
Doddakannelli, Sarjapur Road, Bengaluru - 560035, India
CIN: L32102KA1945PLC020800 | Email: info@wipro.com
wipro.com