Wipro Annual Report For FY 2016 17 Interactive
Wipro Annual Report For FY 2016 17 Interactive
Wipro Annual Report For FY 2016 17 Interactive
#BeTheNew
2016 - 17
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Index
Certain statements in this annual report concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties
that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements
include, but are not limited to, risks and uncertainties regarding fluctuations in our earnings, revenue and profits, our ability to generate and manage growth,
intense competition in IT services, our ability to maintain our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals,
time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international
operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate
potential acquisitions, liability for damages on our service contracts, the success of the companies in which we make strategic investments, withdrawal of fiscal
governmental incentives, political instability, war, legal restrictions on raising capital or acquiring companies outside India, unauthorized use of our intellectual
property, and general economic conditions affecting our business and industry. Additional risks that could affect our future operating results are more fully
described in our filings with the United States Securities and Exchange Commission. These filings are available at www.sec.gov. We may, from time to time, make
additional written and oral forward-looking statements, including statements contained in the companys filings with the Securities and Exchange Commission
and our reports to shareholders. We do not undertake to update any forward-looking statement that may be made from time to time by us or on our behalf.
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Overview of
the report
The 2015-16 Annual Report was our maiden attempt at aligning our Management Discussion &
Analysis to the principles of International Integrated Reporting Framework (referred to as <IR>
framework) developed by the International Integrated Reporting Council (IIRC). For 2016-17 Annual
Report, we continue to use the same reporting framework.
The report complies with financial and statutory data requirements of the Companies Act, 2013
(including the Rules made thereunder and Accounting Standards), the Securities and Exchange Board
of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and the Secretarial
Standards.
The topics covered in the Management Discussion and Analysis section of the report were
identified through a materiality determination exercise and is applicable for the period April 1, 2016
to March 31, 2017. The methodology followed is detailed in our Sustainability Report that can be
accessed at http://wiprosustainabilityreport.com/15-16/?q=materiality-determination.
Identifying and understanding stakeholders, their priorities and engaging with them is key to
materiality determination. At Wipro, stakeholder engagement is an ongoing process and the
details are summarized in our Sustainability report. Refer to http://wiprosustainabilityreport.
com/15-16/?q=wipro-and-its-stakeholders
Integrated approach
Defining
new
What does it mean to be new?
Scripting a strategy for any industry without casting technology in the lead role is
unthinkable today. With decades of experience in creating and running technology
infrastructure in dozens of industries in thousands of engagements, it is only natural
that our clients look to us to translate their strategic ideas to reality.
Wipro has been working with clients across industries to make their strategies real.
As our clients set the course and navigate change, they take on new challenges
from redesigning customer experience, inventing new business models and creating
entirely new revenue streams Wipros insights and ability to deliver have been
invaluable assets to them to solve complex problems, on enterprise scale.
On one hand, we have connected thousands of on-road vehicles via the cloud to
complex analytics and streamline maintenance activities, and on the other, we have
helped design neo-natal care equipment to improve life chances of premature babies.
We have helped industrial clients connect their factory floors and field equipment to
provide entirely new services to customers and optimize inventories.
Our success in playing the role of an agile and knowledgeable partner is due to
the deep knowledge of the industries we operate in and our expertise across the
technology stack. What sets Wipro apart is its ability to formulate an integrated
perspective across markets and technologies and deliver with relentless focus on
excellence.
In order to do this, we identified clear client service tracks for the organization to focus
on, based on client feedback. Over the course of the last year, we emphasized digital
services, scaling up and consolidating our consulting capabilities, strengthening
innovation through Intellectual Property (IP) and IP-led offerings and our portfolio of
integrated services, nurturing our alliances and making strategic investments in our
partner ecosystem, and by creating more localized teams.
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For instance, on the digital front, Wipro Digital, while only three years old, continues to impress industry
analysts and clients, and in Q4 FY 17 it constituted 22.1 percent of our revenues. Wipros end-to-end
value-chain means Wipro can connect-the-dots across the needs of our clients customers, our clients
strategy, digital design and technology capability and deliver business value to our clients.
We have also consolidated and scaled up our Consulting arm at Wipro. Wipros Consulting arm provides
deep domain expertise along with world-class business strategy and governance experience to help
our clients at every step of their transformation journey, from designing the solution to delivering and
measuring results.
On the IP front, we have invested in products, platforms, frameworks and solutions centered around
Wipro HOLMES Artificial Intelligence PlatformTM (HOLMES). In the last fiscal, the number of patents
we held (and applied for) increased by over 50 percent. Innovation is critical to our work, but equally
important is simplification: deploying HOLMES capabilities to drastically change and simplify the IT
delivery model.
In offering our clients a superior delivery experience, our Integrated Services focus has a mandate to
provide end-to-end integrated technology solutions.
In the last 18 months we have invested over USD 1 billion dollars in acquisitions. We have invested
in innovative business models like BPaaS (Business Process as a Service), which integrates across
IT Infrastructure, Application Platforms and Business Operations, and gives our clients flexibility and
value through consumption-based pricing. We made a strategic acquisition of Appirio, the leader in
cloud applications, to bolster our Cloud application services, and it has led to a number of new joint
client engagements.
Our venture capital arm, Wipro Ventures, has made four new startup investments in fiscal 2017 to bring
our clients new technologies that are reshaping the future of enterprises, especially in Cybersecurity,
Customer Care Automation, Business Process Automation and Big Data Lifecycle Management.
Investments in new technologies are also being nurtured within Wipro through the Horizon program,
to incubate thinking in Artificial Intelligence (AI), Cybersecurity, Digital, Industry 4.0, Internet of Things
(IoT), and Software Defined Everything (SDx).
All these initiatives were implemented to underscore our ambition to transform our services for a
new world. Critical to this was ensuring that even with our directional change towards new digital
technologies and service models, we remained committed to core service excellence. This meant
enhancing our service presence in all our key markets by setting up local delivery centers engaging the
local community in hiring and in sustainability initiatives.
This connectedness is the driving force behind Wipros new brand logo, and we are delighted to present it
to you in this Annual Report. The new Wipro logo is a bold and dynamic signature that proudly headlines
the vision we pursue for our company and all those we serve. We believe it embodies a sense of fluidity,
resourcefulness, optimism and creativity in our work approach. The simplicity of the brand signals
vibrancy, connectedness, awareness and an outwardly moving focus. It builds on the universal shape of
the circle, with radiating dots around Wipros name that suggest the many connections we create for our
clients to help them expand their possibilities. Together, with our name, the new logo conveys a sense of
outward motion, propelling us into a future that we define with our clients.
Our organization and our people are now truly global in the places we live and the ways in which we
think and collaborate. It was important to us that the new brand identity reflect a re articulated Spirit
of Wipro in this diverse but deeply connected, digital world.
The re articulated Spirit of Wipro resonates with our new identity. It is the indivisible synthesis of four
values:
Our values are deep rooted in who we are which reflects in our character. At Wipro, we believe that these
four values must manifest in our behavior and our interactions with colleagues and clients. The Spirit of
Wipro is our own lighthouse: to give us a clear sense of purpose and be a touchstone for all that we do.
With our transformed organization, our new brand identity and the re articulated Spirit of Wipro, we aim
to become the energy source that powers our clients success, and as a result, Wipros success.
We offer an invitation to you to join us in a future thats better and bolder and even more beautiful
than what has ever been imagined.
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Sustainability Customer
stewardship
highlights
32,000+ employees enrolled on TopGear, Received the Citi Lean partner award
Social learning platform for 2015 in recognition of high levels
of service and performance Recognitions
A sustainable, 2,000+ participants have been covered through Recognised as Best Collaboration Partner by
the One Voice Program LTA, Singapore at the Land Transport Excellence Wipro recognized as member of Dow Jones
empowering workplace Awards 2016 Sustainability Index (DJSI), World for the seventh
2,000+ delivery leaders from strategic accounts Sustainability assessments front ended by time in a row. Wipro is also a member of the DJSI
Sustained use of Yammer as the enterprise underwent two programs called customers: Ecovadis CSR rating of Gold Emerging Markets Index
social networking platform; Over 109,000+ WinMore - Account Mining for Growth & and Verego Best in Class Wipro features in the A List of CDPs global report as
users with 9,400+ groups ADROIT for Behavioral Transformation across five areas well as the India Climate Change Report 2016
Wipro recognized as one of the 100 most sustainable
corporations in Asia in the 2016 Channel NewsAsia
Engagement scores in the Employee Sustainability Ranking
Perception Survey (EPS) 2016 increased by Wipro selected as a member of the Vigeo Eiris
12.5 basis points compare to EPS 2015 Emerging Market Sustainability Index (the 70 most
advanced companies in the Emerging Market Region)
Wipro named as a Worlds Most Ethical Companies by
Wipro won Innovative Policies & the Ethisphere Institute for the 5th successive year
Practices for Persons with Disabilities Wipro Ltd received A Rating with a PLATINUM
Award 2017 by Zero Project, Vienna. Sustainable Plus Label from CII
0 0
2014-15 2015-16 2016-17 2014-15 2015-16 2016-17
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Chairmans
letter to the
stakeholders
Dear Stakeholders,
In May 2017, we introduced the new Brand identity of Wipro and
rearticulated our Values, the Spirit of Wipro. The year also marks
the 70th anniversary of Wipros listing on the stock exchange.
Wipro has been built by an unflinching commitment to The creation of intellectual capital results from investments
values. And our Brand identity has been a clear visual in human capital. Last year we trained over 39,000 employees
representation of what we do for our clients, what we mean in Digital technologies. Our investments in emerging
to them, and so in a deep sense why we exist. technology spaces of Artificial Intelligence, Data Analytics
and Digital resulted in 603 patents last year alone.
Our new brand identity is energizing and exciting. It is a very Our work in school education, community care and ecology
apt visual expression of why we exist: to amplify our clients enhances social and natural capital. The Wipro Science
success. Education Fellowship for teachers in the US has now
expanded to the city of Dallas, while we continue to work
The new identity reflects our transformation in the closely with teachers in Boston, Chicago, New Jersey and
enormously diverse, yet deeply connected world. It New York.
captures our expanding ability to generate insights from
interconnected perspectives. And to bring these insights to We are making very satisfactory progress on all our
bear directly on innovations which drive our clients business Sustainability Goals. The fact that 38% of all our water
success. requirements is met through recycling helps preserve a
precious natural resource. In combination with improvements
The Spirit of Wipro energizes us to make this happen. The in water efficiency, we saved nearly 500 million liters of water
rearticulated Spirit is deeply resonant with the new identity. last year. These water efficiency initiatives reduce pressure
It reflects our transformation, yet remains firmly rooted in on freshwater resources and pares energy consumption. In
who we are and have been. 2016-17, our absolute greenhouse gas emissions reduced by
nearly 30,000 tons. This was driven by our renewable energy
This is as it must be, because the Spirit of Wipro is the core footprint which stands at 25% of our overall electricity
of Wipro. It is our character. It is the unchanging essence of consumption and investments in energy efficiency. We will
Wipro, while embracing what we must aspire to be. It is for continue to vigorously drive both these dimensions in line
this that the Spirit of Wipro is our beacon. With our vibrant with our defined targets for 2020.
new brand identity and the rearticulated Spirit of Wipro, I see
enormous source of energy to power success: the success of Our new brand identity resonates deeply with this
our clients, the success of our employees, the success of our fundamental approach of value creation on multiple
stakeholders and therefore the success of Wipro. dimensions, reflected in the energetic and organic
integration of diversity in the identity.
Stakeholder Value
And at our core, is the Spirit of Wipro, which directly guides
We continually strive to enhance value for investors. The us to be responsible as a global citizen of this planet.
trust that our clients place in us is at the heart of this.
Let me end by thanking you and all our stakeholders, for the
We have a philosophy of providing regular and stable payout trust and faith that you repose in us.
to investors and prudently evaluate capital allocation
decisions, in the interest of building long term stakeholder Very Sincerely,
value.
CEOs
letter to the
stakeholders
Dear Stakeholders,
The business landscape has seen rapid changes in recent years. Winning in
todays world requires new business models, agile ways of working and a fresh
strategy, design and technology vision. We believe that growth opportunities are
vast for those who make a successful transition to the New business models and
align harmoniously with the New ways of working.
It has been a little over a year since Wipro embarked on a transformation journey.
Let me give you an update on our transformation and the underlying strategy, that
I articulated, last year.
Our strategy is based on two themes help our clients Drive the Future of their
businesses (Change Strategy) and Modernize the Core of our clients business
(Run Strategy)
Strategy update
Drive the future (CHANGE) We are driving the CHANGE strategy through the
following key themes:
Wipro Digital has scaled significantly since its inception. Clients understand
our differentiated value proposition which brings together advisory, design and
technology to drive digital transformation. We have consolidated, scaled up our
Consulting arm and aligned it with Digital. This end-to-end digital value-chain
enables us to connect-the-dots across the needs of our clients customers, our
clients strategy, digital design and technology capability and deliver business
value to our clients.
Automation & IP
HOLMES for IT is a focused initiative for us to improve not only the delivery
productivity, but also drive a new way to work as we foresee cognitive and Robotic
Process Automation (RPA) drastically changing the traditional IT delivery
model. In FY17, we generated productivity worth over 12,000 persons across
140+ customer engagements by leveraging next generation delivery practices
and deploying over 1,800 cumulative instances of HOLMES bots in the areas of
application development, maintenance and infrastructure services.
HOLMES for Business is focused on solving use cases in areas such as compliance,
onboarding, customer service, supply chain and anomaly detection, with a strong
focus on building industry-specific solutions. HOLMES continues to receive
strong adoption, with several customers across diverse industry segments.
Partner Eco-system
Ventures: In FY17, Wipro Ventures made four investments. As of March 31, 2017
we held 9 such investments with a cumulative spend of $ 24.5 million in start-
ups working in technologies that are reshaping the future of enterprises. Together
with our investee companies, we now have 10 joint commercial engagements in
Security, Customer Care Automation, Business Process Automation and Big Data
Lifecycle Management.
Industry Analysts: I am glad to inform you that Wipro has received several
recognitions from industry analysts in recent quarters. Wipro has been recognized
as a Leader in 52 analyst reports in FY17, that is more than two fold increase over
the past 3 years.
Modernize the Core (RUN) - We continue to drive market share in our core
businesses through the following key themes:
Client Mining
In FY17, we received many client recognitions. For instance, Wipro received the
Citi Lean Partner award from Citibank, in recognition of its high levels of service
and performance. Our Net Promoter Scores (NPS) improved 740 basis points in
FY17 over FY16, reaffirming the trust our clients have reposed in us.
Our pipeline grew significantly in FY17 led by our mining efforts. A growing part of
our pipeline consists of integrated deals and this is translating into wins.
Localization
FY17 saw immense progress in localization in all our key markets. In the US, we
invested significantly in acquiring capabilities, increased hiring, set up delivery
centers and focused our sustainability initiatives specifically in the area of
education. In FY17, Wipro added two more major multi-client delivery centers in
Mountain View, California and Farmington Hills, Michigan. During the year, over
3,000 local employees joined Wipro in the US and today, Wipro has a workforce of
over 14,000 in the US. We are driving increased localization and expect to have a
majority of our US workforce as local employees soon. Similarly, we are making
good progress on localization initiatives in UK, Singapore, Middle East and other
parts of the world.
Employees
We provide ample opportunities for employees to upskill and grow their careers.
Our learning & development programs have been well-received. For instance,
we trained over 39,000 employees on Digital skills in FY17, well ahead of our
earlier planned target. Overall, we now have over 60,000 technical employees
trained on Digital skills. In fact, our Employee Perception Survey 2016, showed an
improvement of 12.5 percentage points in terms of overall employee satisfaction
with a significant criterion in the survey being employees perception of sufficient
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Brand
Over the last year, we spoke to a cross section of our stakeholders, including
our employees, clients, industry analysts, and advisors to understand what they
believe we excelled at and what we could do better.
The insights were heartening. Our clients count on us to help them run and
transform their businesses. They appreciate our ability to help them connect the
dots by bringing together broad and deep technology and domain expertise. They
complimented our capability to draw and apply insights from across industries.
They value our One Wipro approach and our skill to provide integrated, end-
to-end capabilities and services. They endorsed our track record of delivering
excellence consistently.
In light of all the new initiatives that we outlined as part of the strategy update
and the prospect of end-to-end transformation, we felt strongly that this journey
called for a new visual identity. In May 2017, we unveiled our new brand identity.
The new logo represents the way we connect the dots for our clients now seen
through a digital lens for a digital world. It embodies the positive energy that
Wiproites bring individually and collectively.
In our journey in delivering the vision, I wish to thank our shareholders for their
investment as well as look forward to their continued support.
Very Sincerely,
Abidali Z Neemuchwala
Board of Directors
Rishad Premji - Chief Strategy Officer & Member of the Board William Arthur Owens - Independent Director
Abidali Z Neemuchwala - CEO & Member of the Board Names listed, from left to right
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Azim H Premji
Chairman
Azim H Premji is the Chairman of the Board and Managing Director (designated as Executive Chairman)
of Wipro Limited and has been at its helm since the late 1960s, turning what was then a small cooking
fat company into a $ 8.5 billion revenue group with businesses in IT, Consulting and Business Process
Services with a presence in over 60 countries. Mr. Premji also serves as a director of Wipro Enterprises
(P) Limited, Wipro GE Health Care Private Ltd., and in other entities of the promoter group. Mr. Premji
has established the Azim Premji Foundation, which is focused on improving public school education,
working directly in six states of India which have over 350,000 schools. The Foundation also runs the
not-for-profit Azim Premji University, focused on programs in education and related fields of human
development. He has also set up the Azim Premji Philanthropic Initiatives, through which impactful
non-profits working in a few chosen fields including nutrition and support to vulnerable groups, are
given multi-year grants. Over the years, Mr. Premji has received numerous honors and accolades, which
he considers as recognitions for Team Wipro. Mr. Premji is the first Indian recipient of the Faraday Medal.
The Republic of France bestowed upon him the Legion of Honor and in January 2011, he was conferred
with Padma Vibhushan, the second highest civilian award in India. Mr. Premji has been listed as one of
the most influential people in the world by several global publications including Time, Financial Times,
Forbes and Fortune. BusinessWeek listed him amongst the top 30 entrepreneurs in world history. Mr.
Premji has a graduate degree in Electrical Engineering from Stanford University. Mr. Premji is the father
of Mr. Rishad A. Premji, who is the Executive Director and Chief Strategy Officer of the Company.
Narayanan Vaghul
Independent Director
Narayanan Vaghul has served as a director on our Board since June 1997. He is the Chairman of our
Audit, Risk and Compliance Committee, and a member of the Board Governance, Nomination and
Compensation Committee. Mr. Vaghul is also the lead independent director of the Company. He was the
Chairman of the Board of ICICI from September 1985 to April 2009. Mr. Vaghul is on the Boards of the
following public companies in India and overseas: 1) Mahindra World City Developers Limited, 2) Piramal
Enterprises Limited and 3) Apollo Hospitals Enterprise Limited. He is also on the boards of two private
limited companies and several Section 8 companies and public trusts. Mr. Vaghul is the Chairman of
the Compensation Committee of Piramal Enterprises Limited and its 100% subsidiary, PHL Finance
Private Limited. Mr. Vaghul is also the Chairman of the Audit Committee of Piramal Enterprises Limited.
Mr. Vaghul is a member of the Remuneration Committee of Mahindra World City Developers Limited and
Apollo Hospitals Enterprise Limited. Mr. Vaghul holds a Bachelor (Honors) degree in Commerce from
Madras University. Mr. Vaghul was the recipient of the Padma Bhushan award by the Government of
India in 2010. Mr. Vaghul also received the Lifetime Achievement Awards from Economic Times, Ernst
& Young Entrepreneur of the Year Award Program and Mumbai Management Association. He was given
an award for his contribution to the Corporate Governance by the Institute of Company Secretaries in
2007.
Dr. Ashok S Ganguly has served as a director on our Board since 1999. He is the Chairman of our Board
Governance, Nomination and Compensation Committee. He is currently the Chairman of ABP Pvt. Ltd
(Ananda Bazar Patrika Group). Dr. Ganguly also currently serves as a non-executive director of Dr.
Reddys Laboratories Ltd. Dr. Ganguly is the Chairman of the Governance, Nomination and Remuneration
Committee and Chairman of the Science, Technology & Operations Committee of Dr. Reddys Laboratories
Ltd. Dr. Ganguly was a former member of Rajya Sabha, the upper house of Parliament of India (2009-
2015). He is a former member of the Board of British Airways Plc from 1996 to 2005 and Unilever Plc/NV
from 1990 to 1997. Dr. Ganguly was formerly the Chairman of Hindustan Unilever Limited from 1980 to
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1990. Dr. Ganguly was on the Central Board of Directors of the Reserve Bank of India from 2000 to 2009.
In 2006, Dr. Ganguly was awarded the CBE (Hon) by the United Kingdom. In 2008, Dr. Ganguly received
the Economic Times Lifetime Achievement Award. Dr. Ganguly received the Padma Bhushan award by
the Government of India in January 1987 and the Padma Vibhushan award in January 2009. Dr. Ganguly
holds B.Sc (Hons) from University of Bombay and an MS and PhD from the University of Illinois.
William Arthur Owens has served as a director on our Board since July 2006. He is also a member of
our Board Governance, Nomination and Compensation Committee, and serves as the Chairman of
our Strategy Committee. He has held a number of senior leadership positions at large multinational
corporations. Mr. Owens presently serves as the Chairman of the Board of CenturyLink Telecom. He is
also the Executive Chairman of Red Bison Advisory Group (RBAG). RBAG is a company in the natural
resources (oil, gas and fertilizer plants) and information and communication technology sectors. Mr.
Owens previously served as the Chairman of AEA Investors (Asia) from April 2006 to December 2014
and has served as Managing Director, Chairman and Chief Executive Officer of AEA Holdings Asia, a
New York private equity company at various times during that period. Mr. Owens also served as Vice
Chairman of the New York Stock Exchange, Asia from June 2012 to June 2014, as well as Vice Chairman,
Chief Executive Officer and Vice Chairman of the Board of Directors of Nortel Networks Corporation,
a global supplier of communications equipment from April 2004 to November 2005. Prior to that, Mr.
Owens served as Chairman and Chief Executive Officer of Teledesic LLC, a satellite communications
company from August 1998 to April 2004. During that same period, Mr. Owens also served as Chairman
and Chief Executive Officer of Teledesic LLCs affiliated company, Teledesic Holdings Ltd. Mr. Owens was
President, Chief Operating Officer and Vice Chairman of Science Applications International Corporation
(SAIC) from June 1996 to August 1998.
Mr. Owens was a career officer in the U.S. Navy where he served as commander of the U.S. Sixth Fleet
in 1990 and 1991, and as senior military assistant to Secretaries of Defense Frank Carlucci and Dick
Cheney. Mr. Owens military career culminated in his position as Vice Chairman of the Joint Chiefs of
Staff where he had responsibility for the reorganization and restructuring of the armed forces in the
post-Cold War era. Mr. Owens is widely recognized for bringing commercial high technology into the
U.S. Department of Defense for military applications and as the architect of the Revolution in Military
Affairs (RMA), an advanced systems technology approach to military operations. Mr. Owens is also a
member of several philanthropic and private company boards. Mr. Owens was a member of the Board
of Directors of Daimler Chrysler AG from November 2003 to April 2009, Embarq Corporation from May
2006 to July 2009 and Nortel Networks Corporation from February 2002 to November 2005.
Mr. Owens is a director of the following private companies: Humm Kombucha, a beverage company,
BlueDot which aims to form health-care and energy businesses from federal research laboratories,
Moon Express, and Viome a wellness as a service company. Owens is on the advisory board of the
following private companies: Platform Science, Sarcos, and Sierra Nevada Corporation. Owens is on the
board of trustees at East West Institute, Seattle University, and an advisor to the Fiscal Responsibility
Amendment (CFFRA) Association which aims to establish a balanced budget amendment to the US
Constitution. He is also a member of the Council of Foreign Relations. Mr. Owens holds an M.B.A.
(Honors) degree from George Washington University, a B.S. in Mathematics from the U.S. Naval Academy
and a B.A. and M.A. in Politics, Philosophy and Economics from Oxford University.
M K Sharma
Independent Director
M K Sharma became a director of the Company in July 2011. Mr. Sharma is the Chairman of our
Administrative and Shareholders/Investor Grievance Committee. Mr. Sharma is also a member of our
Audit, Risk and Compliance Committee. Mr. Sharma served as Vice Chairman of Hindustan Unilever
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Limited from 2000 to 2007. Mr. Sharma served as a full-time director of Hindustan Unilever Limited
from 1995 to 2000. Mr. Sharma is currently on the boards of ICICI Bank Limited, United Spirits Limited,
Asian Paints Limited and Blue Star Limited. Mr. Sharma is also on the board of the Indian School of
Business, Hyderabad and serves as a Governor of Anglo Scottish Education Society Limited, Mumbai.
Mr. Sharma is the non-executive Chairman of ICICI Bank Limited and United Spirits Limited. Mr. Sharma
is a member of the Audit Committee of Blue Star Limited and Asian Paints Limited. Mr. Sharma is also
a member of the Nomination and Remuneration Committee of Asian Paints Limited and ICICI Bank
Limited. Mr. Sharma is the Chairman of the Risk Management Committee of Asian Paints Ltd. and the
Chairman of the Risk Committee of ICICI Bank Limited. Mr. Sharma holds a Bachelors Degree in Arts and
Bachelors of Law Degree from Canning College University of Lucknow. He completed a post-graduate
diploma in Personnel Management from the Department of Business Management, University of Delhi
and Diploma in Labour Laws from Indian Law Institute, Delhi. In 1999, he was nominated to attend the
Advance Management Program at Harvard Business School.
Ireena Vittal
Independent Director
Ireena Vittal became a director of the Company in October 2013 and she also serves as a member of
our Audit, Risk and Compliance Committee and Administrative and Shareholders/Investors Grievance
Committee. Ms. Vittal is a former partner with McKinsey & Co. Prior to joining McKinsey & Co., Ms.
Vittal worked with Nestle India Limited and with MaxTouch (now Vodafone India Limited). Ms. Vittal
serves as a board member of Titan Industries Limited, Tata Global Beverages Limited, The Indian Hotels
Company Limited, Godrej Consumer Products Limited, Compass Plc, Zomato Media Private Limited
and on the global advisory board of ideo.org. Ms. Vittal is also a member of Audit Committee of all the
aforementioned companies. Ms. Vittal has a graduate degree in Electronics from Osmania University
and has completed her Masters in Business Administration from the Indian Institute of Management,
Calcutta.
Rishad Premji
Rishad Premji, a full-time director since May 2015, is also the Chief Strategy Officer of the Company.
He also serves a member on our Strategy Committee and Administrative and Shareholder/Investor
Grievance Committee. As the Chief Strategy Officer, he is responsible for shaping the Companys strategy
to drive sustained and profitable growth. In his role, Mr. Premji is also responsible for Investor Relations
and all Government relations activities of the Company. Mr. Premji is on the Board of Wipro Enterprises
(P) Limited, a leading player in FMCG & Infrastructure Engineering and Wipro-GE, a joint venture
between Wipro Enterprises (P) Limited and General Electric in the healthcare domain. Separately, he
is on the Boards of the Azim Premji Foundation, one of the largest not-for-profit initiatives in India,
and Azim Premji Philanthropic Initiatives, which provides grants to organizations that contribute to
social change. Prior to joining Wipro in 2007, Mr. Premji was with Bain & Company in London, working on
assignments across Consumer Products, Automobiles, Telecom and Insurance. He also worked with GE
Capital in the U.S. across businesses in the Insurance and Consumer Lending space and is a graduate
of GEs Financial Management Program. Mr. Premji has an MBA from Harvard Business School and a
BA in Economics from Wesleyan University in the US. In 2014, he was recognized as a Young Global
Leader by the World Economic Forum for his outstanding leadership, professional accomplishments,
and commitment to society. Mr. Premji is the son of Mr. Azim Premji, the Chairman of the Board and
Managing Director.
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Abidali Z Neemuchwala
Abidali Z Neemuchwala has been the Chief Executive Officer and Executive Director of the Company
with effect from February 1, 2016. Previously, he served as Group President and Chief Operating Officer
of the Company with effect from April 1, 2015. Mr. Neemuchwala spearheaded several initiatives
across Global Infrastructure Services, Business Application Services, Business Process Services, and
Analytics to create a more nimble and agile organization. Mr. Neemuchwala believes that in todays
digital world, successful organizations are the ones, which have the ability to convert consumers
aspirations into instant gratification. Reflecting the same he delivered his popular keynote at the
Oracle Open World 2015 articulating the new world order, in which customers buy digital experience
as-a-service. Mr. Neemuchwalas career includes a 23 year tenure in Tata Consultancy Services, where
he handled multiple roles in business, technology, sales, operations and consulting. In his last role,
he headed the Business Process Services (BPO) business. He was awarded the BPO Chief Executive
Officer of the year 2010 and in the year 2012 the Shared Services Organization of IPQC recognized
him for his personal contribution to the industry. Abid is on the board of the World Affairs Council of
Dallas Forth Worth, contributing in connecting the local community to the world. Mr. Neemuchwala
has a Masters in Industrial Management from Indian Institute of Technology Mumbai and a Bachelors
Degree in Electronics and Communication from National Institute of Technology, Raipur. He is also a
Certified Software Quality Analyst and a Certified Six Sigma Green Belt.
Dr. Patrick J Ennis became a director of the Company in April 2016. Dr. Ennis has more than 25 years of
experience as a scientist, engineer, businessman and venture capitalist. Dr. Ennis serves as a member
of our Strategy Committee. He is currently at the Invention Development Fund of Intellectual Ventures
where he invests in technology commercialization worldwide via an international open innovation
network of thousands of inventors. Previously he was at ARCH Venture Partners where he built startups
from universities and national labs. He also held positions with Lucent, AT&T and Bell Labs, and
conducted research in Nuclear Physics at labs in North America and Europe. He is an inventor of several
patents, has written articles and book chapters and is a frequently invited speaker. Dr. Ennis has served
on numerous corporate, educational, and non-profit boards. He earned a PhD and M.S. in Physics from
Yale, an M.B.A. from Wharton and a B.S. in Math and Physics from the College of William & Mary where
he was elected to Phi Beta Kappa.
Patrick Dupuis
Independent Director
Patrick Dupuis became a director of the Company in April 2016. He also serves as a member of Our
Strategy Committee. Mr. Dupuis is a former Officer of global technology platform and payments leader,
PayPal Holdings, Inc. where he facilitated the companys listing on Nasdaq in 2015 and its double-
digit global expansion as Chief Financial Officer, then SVP for Quality and Productivity. Prior to joining
Paypal, Mr Dupuis was Chief Financial Officer of Sitel, a leader in customer service and CFO of BJC
Healthcare, one of the largest non-profit health care organizations in the US. He started his career in
1984 at General Electric, where he held multiple executive positions over 20 years, including Head of
GEs famed Audit Staff, Chief Financial Officer of BJC Healthcare and General Manager of GE Capital
International Services (now Genpact). Throughout his career, Mr Dupuis has been an enabler of growth,
transformation at scale and organization effectiveness. He is a committed coach and mentor for middle
and senior executives. He serves with a number of social organizations, including Board member and
Audit Chair for PayPal Giving Fund, a global platform that enables the distribution of charitable giving
from millions of donors to thousands of charities. Mr. Dupuis graduated from the cole de Management
de Lyon in France.
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Management discussion
and analysis
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Industry overview
IT Services
Business overview
Over the past two decades, with the emergence of the
internet and inexpensive connectivity, the global delivery We are one of the leading providers of IT services globally.
model of service delivery has risen to become the preferred We combine the business knowledge and industry expertise
model in sourcing of IT services, business process services of our domain specialists and the technical knowledge
and research and development services. In this period, and implementation skills of our delivery team leveraging
service providers have gained technological expertise, our products, platforms, partnerships and solutions in our
domain competency and delivery capability by either development centers located around the world.
developing organically or by acquiring companies with
these competencies. Fast-evolving technology landscapes, We develop and integrate innovative solutions that enable
dynamic economic environments and the emergence of our clients to leverage IT to achieve their business objectives
digital business has created a need for enterprises to look at competitive costs. We use our quality processes and global
for a partner to advise, design and execute their technology talent pool to deliver time to development advantages,
transformation and support programs. Large multinational cost savings and productivity improvements.
enterprises are engaging global IT Services companies
to deliver high quality service on a global scale and at Our IT Services business provides a range of IT and IT-enabled
competitive costs. We believe the IT Services industry has services which include digital strategy advisory, customer-
significant growth potential. centric design, technology consulting, IT consulting, custom
application design, development, re-engineering and
Global IT service providers offer a range of end to end maintenance, systems integration, package implementation,
software development, digital services, IT business global infrastructure services, analytics services, business
solutions, research and development services, technology process services, research and development and hardware
infrastructure services, business process services, and software design to leading enterprises worldwide.
consulting and related support functions. According to
the Strategic Review 2017 of NASSCOM (the NASSCOM The markets we serve are undergoing rapid changes due
Report) in FY17, IT export revenues, from India grew by to the pace of developments in technology, innovation in
7.6%, to an estimated $117 billion. business models and changes in the sourcing strategies of
clients. Pressures on cost-competitiveness, an uncertain
In the last few years, enterprises around the world are economic environment and immigration restrictions
embracing the reality that digital transforms every aspect are causing clients to develop newer business models.
of business. Experiences, consumers, entire industries, On the technology front, digital business has changed
business models and ways of working are all rapidly and the nature of demand for IT services. Development of
fundamentally changing. Recognition of these trends, advanced technologies such as cloud based offerings, big
combined with the realization that enterprises may not data analytics, mobile applications and the emergence of
be able keep up with this pace of change, has a profound social media are shifting the point of decision-making on
impact on our clients. This requires new business models, IT sourcing within clients organization from the traditional
new ways of working and integrated capability across Chief Information Officer to newer stakeholders such as
strategy, design and technology. NASSCOM Report projects Chief Marketing Officer, Chief Digital Officer and Chief Risk
the Indian technology and services industry to reach $200 Officer. These trends on newer business models, emerging
billion to $225 billion in revenues by 2020 and over $350 technologies and sourcing patterns provide us with
billion by 2025, from a base of $154 billion in 2017. significant growth opportunities.
analysts and rating organizations recognize the quality of have a presence in Indianapolis, San Francisco, Dublin,
our intellectual property (IP) and we intend to continue London, Jaipur and Tokyo. Appirio has differentiated assets
developing high quality inventions. Many of our patents are in Customer Relationship Management (CRM), Customer
in emerging technology areas and serve as a foundation for Experience and Human Capital Management (HCM),
many of our new technology platforms, including AI, IoT, including a strong base of enterprise clients.
connected devices and autonomous vehicles.
We have also consummated the acquisition of InfoSERVER
8. World class Ecosystem S.A. during April 2017. InfoSERVER is a Brazilian IT Services
company that predominantly caters to the Banking, Financial
Given the pace and scale of disruption in the technology
Services and Insurance markets in Brazil. Over the last 21
landscape, it is imperative to have a proactive and structured
years, InfoSERVER has been recognized for its excellence in
approach to tap the innovation ecosystem. Our ecosystem
delivery and specialized knowledge of local banking domain
strategy is defined around building and nurturing four types
and processes. InfoSERVER is headquartered in So Paulo,
of ecosystem plays through Start-up Partnerships, M&A,
Brazil. With this acquisition, Wipro and InfoSERVER will be
Academia Partnerships and the Horizon Program.
able to deliver a full suite of integrated IT services across
Digital, consulting, and business process services to four of
Start-up Partnerships
the top five banks in Brazil.
As part of a start-up engagement model, we have invested
Academia Partnerships
in building world-class partnerships through a $100 million
corporate venture capital fund, Wipro Ventures, aimed at
The objective of our academia partnerships is to promote
investing in cutting edge start-ups in areas such as Digital,
cutting edge technology research and capability aligned to
IoT, Big Data, Open Source, Cybersecurity, Fintech and
academia objectives. Our focus is to work with academic
Security, Supplier Collaboration Platform and AI. During the
institutions and associations in the United States, Europe,
fiscal year ended March 31, 2017, Wipro Ventures has seen
Israel and India in the fields of computer and electrical
strong traction and scale. As of March 31, 2017 we hold 9
engineering. There are three models of engagement: project,
such investments with a cumulative spend of $24.5 million
program and joint research. We have current partnerships
in start-ups working in Big Data and Analytics (Talena, Inc.),
with universities and industry associations and our endeavor
AI (Vicarious FPC, Inc., Investments through TLV partners),
is to expand these partnerships in the defined research
IoT (Altizon Systems Pvt Ltd), Mobility (Avaamo Inc.), Supplier
areas, which are aligned with our strategic areas of interest.
Collaboration Platform (Tradeshift Inc.), Fintech and Security
(Vectra Networks Inc., Emailage Corp., IntSights Cyber
Horizon Program
Intelligence Ltd.) technologies that are reshaping the
future of enterprises.
The goal of the Horizon Program is to drive organic incubation
in emerging areas covering products, platforms, solutions and
M&A
capabilities. In order to achieve this objective, we are investing
Acquisitions are a key enabler for us and drive our capability in key areas such as AI, cloud computing, cybersecurity, digital
to build industry domain, strengthen our presence in experience, digital marketing and commerce and Industry
emerging technology areas including Digital, and increase 4.0, or the automation and data exchange in manufacturing
market footprint in newer markets. We focus on opportunities technologies such as IoT. During the year ended March 31,
where we can further develop our domain expertise, specific 2017 we have funded 15 new ideas as a part of this program
skill sets and our Global Delivery Model to maximize service
9. Future Focus Areas
and product enhancements and higher margins. We also use
our acquisition program to increase our footprint in certain As a result of the fast-paced change the IT Services
large customers and pursue select business opportunities. industry is undergoing, we continue to invest in areas with
During the year we consummated the acquisition of Appirio. a focus on future potential. We are investing in the areas
of crowdsourcing, new age markets, HOLMES for Business
Appirio is a leader in cloud services and brings significant and emerging areas such as Blockchain, Software Defined
partnerships with Salesforce.com, Inc. and Workday, Inc. Everything and Cybersecurity.
as well as ecosystem partners such as ServiceMax, Inc.,
Google Inc., Medallia, Inc. and Cornerstone OnDemand Inc. Crowdsourcing: As a part of the Appirio acquisition, we
Its talented team and strong crowdsourcing community acquired Topcoder, which is a leading crowdsourcing
(called Topcoder) are strategic assets. Topcoder is a leading marketplace with over a million participating designers,
crowdsourcing marketplace which connects over a million developers and data scientists. We are focusing on building
designers, developers and data scientists around the crowdsourced delivery models to better serve the needs of
world with customers via online computer programming our customers.
competitions hosted on its platform. With over 1,250
employees, over 700 of which are based in the U.S., they New Age Ecosystem: Given the different needs of new
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age companies, which are quickly changing the customer are committed to provide opportunities to our employees
landscape and disrupting incumbents in their respective to re-skill and up-skill themselves, in the face of rapidly
industries, we have formed a New Age Business Ecosystem evolving technology and increasing automation.
to cater to the needs of these companies. This unit is
tasked with creating solutions, platforms and offerings for Acting responsibly
these customers in the areas of digital, cloud, analytics,
cybersecurity and BPaaS, among others. At Wipro, we think it is critical for business to engage with
the multiple social and ecological challenges that face us.
HOLMES for Business: HOLMES, an AI Platform with a rich Such engagement must be deep, meaningful and formed on
set of cognitive computing services based on open source the bedrock of long term commitment; for that is the only
software, is focused on solving key enterprise business way by which real change can happen on the ground. This
use cases by utilizing AI business processes. HOLMES for approach serves both, enlightened business interest and
Business is focused on solving use cases in areas such as social good.
compliance, onboarding, customer service, supply chain
and anomaly detection, with a strong focus on building Environmental Sustainability
verticalized solutions. HOLMES continues to receive strong
adoption, with a number of customers across diverse As a part of Wipros deep commitment to ecological
industry segments. sustainability Wipro has been involved with multiple
environment related programs both, within our business
Blockchain: We have significantly invested in developing IP, ecosystem as well as in the civic and social sectors outside.
advisory services, Blockchain networks and our Blockchain The four pillars of our ecological sustainability program are:
partner ecosystem. During FY17, we completed pilot
Carbon Mitigation and Energy
projects and we will now focus on large scale rollout.
Efficiency Responsible Water
Waste and Pollution Management
Software Defined Everything (SDX): We have significantly
Biodiversity
invested in building a Center of Excellence to showcase
our capabilities in SDX. We are significantly focusing on
enhancing our skill sets across software defined storage, Community initiatives
software defined network, software defined datacenter and
cloud computing. At Wipro, we think that it is crucial to engage with proximate
communities wherever we have significant presence.
Cybersecurity: Given the rise of connected devices and This is a reaffirmation of our belief that at its core, social
transition to the cloud, cybersecurity threats will continue responsibility and sustainability must transcend boundaries
to increase as the threat attack area continues to increase whether organizational or national. Wipro runs the following
beyond the enterprise. We have invested in building deep community programs in different geographies we operate in.
capability in the areas of consulting, cloud security (public,
private and hybrid cloud) and leveraging machine learning Wipro Cares
and analytics, to improve threat detection and response Wipro Applying Thought in Schools
to secure our customers assets and IT from cybersecurity Wipro earthian
threats. Wipro Science Education Fellowship
Wipro South Africa Initiative
Driving differentiation and leadership through our
people
Business model -
creating value across capitals
Financial capital
Capital Expenditure
Capital employed `
Operational expenditure
EMPLOYEES INVESTORS Financial capital
Sales
SUPPLIERS
` Net profit
Intellectual capital CUSTOMERS Operating cashflow
Research and development BUSINESS UNITS
expenses
Investment in innovation partnerships BFSI
Investment in ventures Run Manufacturing & Technology
Modernize the Core Consumer Intellectual capital
Integrated Services HLS Total number of patents
Simplification Communications Number of new patents granted
Manufactured capital
C Hyper-automation Energy, Natural Resources & Revenue from new products
VISION Partner ecosystem Utilities
or
Number of own campuses Localization
Outputs
To earn our clients trust
por
Total number of operating locations
Inputs
ate G
solutions that integrate India & Middle East, Human capital
deep industry insights, Planning APAC & Other Retention and Engagement
leading technologies and Emerging Markets
Gross utilization
Human capital
o
best in class execution Change
Number of employees ver Driving the Future
Employee costs
na Digital & Advisory SERVICE LINES
nce
Number of training programs Non-linearity
World class ecosystem Application Services
Coverage of training programs Global Infrastructure Services
Future focus areas Social and Relationship capital
Business Process Services
Product Engineering Services Market Capitalization
Social & Relationship Analytics Equity payout ratio
Digital & Consulting Tax paid
capital
Number of investor engagements Number of new customers
Spend on CSR Revenue from retained accounts
Supplier spend Number of CSR partners across geographies
Number of partnerships / collaborations
Total number of beneficiaries
COMMUNITIES PARTNERS
Natural capital
Absolute energy consumption Natural capital
Water consumption Emissions avoided
Renewable energy Percentage of water recycled
Land use Percentage of waste recycled
Spend on sustainable infrastructure
Biodiversity impact
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HOLMES and Azures intelligent cloud platform. Business Process Services (BPS): BPS is
Global Infrastructure Services (GIS): GIS is an a global leader in providing next generation
end-to-end IT infrastructure and management technology-led business process services to
service provider that helps global clients in their global enterprises. Our mission is to drive superior
digital evolution. We offer Business Advisory, Cloud customer experience, high levels of efficiencies,
Migration, Data Center Transformation, Workplace uncompromising quality, improve efficiency and
Transformation, Networks, System Integration and productivity to maximize profit and to transform the
Managed Services. This unit has a global team of over business processes from manual to a completely
30,000 infrastructure consultants and is backed by automated functions. We provide accelerated
a strong network of strategic technology partners, business results driven by analytics across every
integrated ServiceNXT operation centers, 14 data touch point of the business through marketing
centers as well as in our homegrown automation services, content development and management,
platform, Wipro HOLMES Artificial Intelligence finance and accounting, sourcing and procurement,
PlatformTM. human resources, legal process support services
Product Engineering Services Group (PES): PES and customer relationship management.
facilitates breakthrough product and engineering Wipro BPS key non-intrusive industry and
services transformations across all major industry technology agnostic differentiators are:
verticals. With a focus on Digital transformation, Enterprise Operations Transformation
PESs specialized team of over 10,000 skilled Framework A suite of comprehensive
professionals combined with in-house innovation solutions to address the central business
labs deliver end to end engineering R&D services. essentials of achieving process efficiencies
This group is working on significant developments in with a focus on enhanced customer experience,
new age technologies such as IoT, cloud platforms, cost optimization, reduced cycle times and
3D printing, virtualization, smart devices and AI. improved accuracy. The solution suite delivers
Analytics: At Analytics, we consult our customers standardized service, touching all engagements
across the entire length of their data supply of a customer lifecycle through simplification,
chain, leveraging our AI, machine learning, automation, intelligence and immersive
advanced analytics, big data and information experience, supported by a cross trained
management platforms and capabilities. We focus team of over 100 consultants, our proprietary
on developing end-to-end analytics and information solutions, platforms and alliance with leading
strategies across the Data-Information-Insight- solution providers for automation solutions.
Recommendation-Execution value chain by using Base))) Wipros Business Operations
our advanced analytics capabilities that leverage platform Base))) comes with business and
our pre-built solutions for specific industries and operations analytics, pre-built process libraries,
processes. The service offerings include: business design and process management
1. Data Platform Engineering services, which components to manage todays business
focuses on delivering accelerated platform operations.
development catering to the areas of internet Next Gen Customer Experience (NGCE) Our
scale applications, big data platforms and high NGCE platform leverages cognitive analytics to
performance computing. reduce interaction costs, increase revenue per
2. The Big Data Analytics practice, which offers customer, improve employee productivity and
insight delivery in real time or near real time enhance customer experience.
through analytical platforms and solutions built Robotics Process Automation (RPA) RPA
utilizing open source platforms. serves the next-generation BPS, which delivers
3. The Information Management practice, which is beyond labor arbitrage to improve processes
dedicated to enabling the digital transformation and accuracy by eliminating human error
journeys of its clients through a trusted data and optimizing cost. RPA helps achieve next
foundation. generation business goals and transformative
4. The Business Intelligence (BI) practice, impact through rapid deployment and limited
which is focused on helping businesses capital expenditures requirements.
unleash the value from their data and provide BPaaS Wipro delivers best of technology
timely, contextual and relevant actionable led services to its customers. Wipros (BPaaS)
insights rendered through rich and interactive delivery solutions allow standardized, yet highly
visualizations. configurable processes for quick deployment
5. The Database practice, which is focused and use. We continue to invest in building a
on enriching Analytics competency in IT larger BPaaS portfolio, which now includes:
architecture and consulting. Source-to-Pay (S2P) BPaaS Suite Our BPaaS
is a comprehensive, strategically differentiating
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and readily deployable plug and play solution and regulatory compliance.
that leverages a mix of partner and in-house Healthcare and Lifesciences (HLS): At HLS,
technologies that addresses current and future we are building a patient-centric interconnected
procurement challenges with digital agility, health ecosystem. With our Discovery to Recovery
reporting accuracy and proficient services. strategy, we are building collaborative systems
HPS Links Platform-as-a-Service Solution: that will bring people, technology and information
Through the acquisition of HealthPlan Services, together to improve lives. This will enable us to
we offer market leading technology platforms connect companies, communities and individuals,
and a fully-integrated BPaaS solution to combining insights, innovation and integration to
health insurance companies (Payers) in the change how healthcare services are provided in the
individual, group and ancillary markets. Payers future.
rely on this innovative and robust offering to Consumer Business Unit (CBU): CBU offers a full
acquire service and retain members. Payers also array of innovative solutions and services to cater
leverage the analytical and predictive engines to the entire value chain, where the consumer is
of this solution to better serve their members. at the core, through a blend of domain knowledge,
technology expertise and delivery excellence.
IT Services industry We offer an integrated environment that allows
organizations to model, optimize, forecast, budget,
verticals execute, manage and measure product and customer
performance across the globe. We provide strong
Effective April 1, 2016, in order to provide strategic focus and consumer-centric insight and project execution
draw synergistic advantages among our sales, marketing skills across retail, consumer goods, media, travel
and business development teams, we realigned our industry and public sector. Our domain specialists work with
verticals. The Communication Service Provider business customers to maximize value through technology
unit was regrouped from the former GMT industry vertical investments. Wipros CBU encompasses Retail,
into a new industry vertical named Communications. The Consumer Goods, Media, Entertainment, Publishing
Media business unit from the former GMT industry vertical Industries, Public Sector and Travel and Hospitality
has been realigned with the former RCTG industry vertical sectors.
which has been renamed as Consumer Business Unit Energy, Natural Resources and Utilities (ENU):
industry vertical. Further, the Network Equipment Provider Our ENU industry vertical has been collaborating
business unit of the former GMT industry vertical has been with and serving businesses across the globe for
realigned with the Manufacturing industry vertical to form over 16 years. Our deep domain and technology
the Manufacturing and Technology industry vertical. The expertise has helped the business become a trusted
revised industry verticals are as follows: partner to over 75 leaders in the Oil and Gas, Mining,
1. Banking, Financial Services and Insurance (BFSI)1 Water, Natural Gas, Electricity, Engineering and
2. Healthcare and Lifesciences (HLS) Construction industries across North and South
3. Consumer Business Unit (CBU) America, Europe, Africa, Australia, India, the Middle
4. Energy, Natural Resources and Utilities (ENU) East, New Zealand, Southeast Asia and Turkey.
5. Manufacturing and Technology (MNT)
6. Communications (COMM) Wipros ENU vertical has been recognized by analysts
as a major player in the Utilities sector. We provide
Our IT Services business is organized into six industry consulting, engineering, technology and business
verticals: processes services expertise to the Utilities industry
Banking, Financial Services & Insurance (BFSI)1: across Generation and Renewables, Transmission
BFSI is our largest business unit in terms of revenue, and Distribution, Retail, Smart Grid, Energy Trading
and includes clients in banking, insurance, and and Risk Management and Health, Safety, Security
securities and capital market industries. Our banking and Environment. Wipro is a strategic partner for
practice has partnered with many of the worlds many of the worlds major oil and gas companies
leading banks. Our insurance practice has been and is recognized as a leader in IDCs Market
instrumental in delivering success to our insurance space: Worldwide Oil and Gas Professional Services
clients who are part of Fortune 100 insurance 2016 Vendor Assessment and was rated in the
companies through our solutions accelerators, IP, Winners circle in the HfS Blueprint Report: Energy
end-to-end consulting services, and flexible global Operation 2016. Strategic acquisitions have further
delivery models. We have partnered with leading strengthened our capabilities and presence in the
investment banks and stock exchanges worldwide, Energy sector. Our offerings encompass sectors
providing state-of-the-art technology solutions to such as oil and gas, mining, utilities, airports, ports,
address business priorities including operational transportation and manufacturing.
efficiency, cost optimization, revenue enhancement Manufacturing and Technology (MNT): Wipros MNT
Note:1) Finance Solutions has been used to describe BFSI in some of
our earlier communications.
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rk
changing dynamically with the dimensions of Cyber security, Tone @
wo
Co
The Top
me
Information Security & Business Continuity, Data Privacy and
nt
Fra
Framework Risk Management
inu
Large Deal Execution figuring prominently in the risk charts
y/
Management Team
ou
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Standard ERM
s
Po
of most organizations. To effectively mitigate these risks,
Im
Framework
p
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we have employed a risk management framework which People, Process,
de
em
Technology
p&
helps proactively identify, prioritize and mitigate risks. The
en
t
lo
Business
ve
framework is based on principles laid out in the four globally Risk
De
Risk Management Units &
recognized standards. Ownership Functions
Identification Analysis Evaluate Treatment Monitoring
Orange Book by UK Government Treasury
COSO; Enterprise Risk Management Integrated. Risk Categories
Framework by Treadway Commission Governance Strategic Operational Compliance Reporting
Appropriate measures are being taken to provide uninterrupted high quality services
Risk of protectionism policies impacting the
to the clients at all geographies.
business
Ombudsprocess
Capitals and
value creation
Wipro is committed to the highest standards of openness,
probity and accountability. Having a robust whistleblower
policy that employees and other stakeholders can use
without fear or apprehension is an essential condition for
a transparent and ethical company. An important aspect of In this section we cover Wipros approach to value creation
accountability and transparency is a robust mechanism that across the five capitals namely financial, intellectual,
human, social and relationship and natural.
allows partners, customers, suppliers and other members of
Financial capital is broadly understood as the pool of
the public, to voice concerns in a responsible and effective
funds available to an organization. Financial capital
manner. What this means in concrete terms is that whenever
also serves as a medium of exchange that can obtain
a stakeholder discovers information that reveals serious
value through conversion into other forms of capital.
malpractice, impropriety, abuse or wrongdoing within the
Intellectual capital is broadly organizational,
organization then the stakeholder should be able to report
knowledge-based intangibles, including intellectual
without fear of reprisal, a concern to the ombudsperson property, such as patents, copyrights, software,
online at www.wiproombuds.com rights and licences and organizational capital
such as tacit knowledge, systems, procedures and
In 2016-17, 1692 complaints were received via the protocols.
Ombudsprocess and 1709 complaints were closed. All cases Human capital is broadly peoples competencies,
were investigated and actions taken as deemed appropriate. capabilities and experience, being continuously
Based on self-disclosure data, 25% of these were reported innovative and contribute to the organizations
anonymously. The top categories of complaints were people shared goals and values .
processes (34%) and workplace concerns and harassment Social and relationship capital is broadly the
(22%). institutions and the relationships within and
between communities, groups of stakeholders and
Wipro has a policy and framework for employees to other networks, and the ability to share information
report sexual harassment cases at workplace and our to enhance individual and collective well-being such
process ensures complete anonymity and confidentiality as customers, investors and suppliers.
of information. Adequate workshops and awareness Natural capital is broadly all renewable and
programme against sexual harassment are conducted nonrenewable environmental resources and
across the organization. A total of 116 complaints of sexual processes that provide goods or services that
harassment were raised in the calendar year 2016, of which support the past, current or future prosperity of an
102 cases were disposed and appropriate actions were taken organization. It includes air, water, land, minerals,
in all cases within the statutory timelines. This includes forests, biodiversity and eco-system health.
all cases reported to the system, even if unsubstantiated. Manufactured capital is broadly seen as human-created,
In some cases, a clear action has been taken (warning or production-oriented equipment and tools. For the IT services
separation) and the rest have either not progressed due to business, these are the fixed assets like buildings, IT hardware
lack of information or resolved through counselling. and telecommunication equipment. The deployment of the
capital is adequately represented in financial capital and
through impacts to natural capital. Hence this report does
not cover manufactured capital separately.
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Impacted capitals
Financial capital Intellectual Capital Human Capital Social and Relationship capital Natural capital
Intellectual capital
Builds relationships for the long term.
Human capital
Engaged employees contribute to environmental Deployment of skilled human resources is critical
programs in campus (resource efficiency for financial value creation.
measures, biodiversity for example) and in
communities (volunteering).
Driving capitals
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Financial
capital
Consolidated results for the year 2016-17
Year ended March 31,
(Figures in ` Million except otherwise stated) 2017 2016# Year on Year Change
Revenues 1
554,179 516,307 7.3%
Cost of revenues (391,544) (356,724) 9.8%
Gross profit 162,635 159,583 1.9%
Selling and marketing expenses (40,817) (34,097) 19.7%
General and administrative expenses (32,021) (28,626) 11.9%
Other Operating Income 4,082 - 100.0%
Operating Income 93,879 96,860 (3.1)%
Profit attributable to equity holders 84,895 89,075 (4.7)%
As a Percentage of Revenue
Gross Margin2 29.1% 30.9% (178)bps
Selling and marketing expenses 7.4% 6.6% (77)bps
General and administrative expenses 5.8% 5.5% (24)bps
Operating Margin 2
16.8% 18.8% (194)bps
Earnings per share-Basic (`) 34.96 36.26 (3.4)%
Earnings per share-Diluted (`) 34.85 36.18 (3.5)%
1. For the purpose of segment reporting, we have included the impact of exchange rate fluctuations in revenue. Excluding the impact of exchange rate
fluctuations, revenue, as reported in our statements of income, is `512,440 million and `550,402 million for the years ended March 31, 2016 and 2017,
respectively. 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.
2. Gross margin and operating margin as a percentage of revenue has been calculated by including Other Operating Income with Revenue.
# We elected to early- adopt IFRS 9, Financial Instruments effective April 1, 2016 with retrospective application from April 2015. Comparative financials reflect correspondingly.
Please see Note 30 of the Notes to the Consolidated Financial Statements for additional details
Revenue: In FY 2016-17, our revenue increased by 7.3%. combinations), increases in subcontracting/technical fees,
This was primarily driven by an 8.4% increase in revenue increases in depreciation and increases in facility expenses,
from our IT Services segment that was offset partially by a which was partially offset by a reduction in the cost of
12.8% decrease in revenue from our IT Products segment. hardware, software and travel.
The increase in IT Services revenues was driven by volume
growth in most of our verticals led by the HLS industry As a result of the foregoing factors, our gross profit as
vertical as well as depreciation of the Indian rupee against percentage of our total revenue decreased by 178 basis
the U.S. dollar. This is partially offset by negative revenue points (bps).
growth in the ENU industry vertical and the appreciation of
the Indian rupee against currencies other than U.S. dollar. Selling and Marketing Expenses: Our selling and marketing
The decrease in IT Products segment revenue was primarily expenses as a percentage of total revenue increased from
due to our focus on being a system integrator of choice 6.6% for the year ended March 31, 2016 to 7.4% for the
where we provide IT products as a complement to our IT year ended March 31, 2017. In absolute terms, selling and
services offerings rather than sell standalone IT products. marketing expenses increased by 19.7% primarily on account
of increases in employee compensation, as well as increases
Profitability: In absolute terms, cost of revenues in amortization and impairment charges for intangible
increased by 9.8% primarily on account of increases in assets recognized through business combinations.
employee compensation due to the impact of Indian rupee Impairment charge is primarily on account of uncertainties
depreciation, salary increases, increases in headcount around regulatory changes relating to the Affordable Care
during the year (including increases resulting from business Act, which has led to a significant decline in related revenue
Note: Consolidated Financial Statements under IFRS have been used for discussion under this section
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and earnings estimates. Employee compensation costs Finance Expenses: Our finance expenses decreased from
have increased primarily due to the depreciation of the `5,582 million for the year ended March 31, 2016 to `5,183
Indian rupee, salary increases and increases in headcount million for the year ended March 31, 2017. This decrease
during the year (including headcount increases resulting is primarily due to a decrease of `905 million in exchange
from business combinations). These increases have been loss on foreign currency borrowings and related derivative
partially offset by savings in travel costs. instruments, which was partially offset by an increase in
interest expense by `506 million on account of increased
General and Administrative Expenses: Our general and borrowings during the year ended March 31, 2017.
administrative expenses as a percentage of revenue
increased from 5.5% for the year ended March 31, 2016 to Finance and Other Income: Our finance and other income
5.8% for the year ended March 31, 2017. In absolute terms, decreased from `23,655 million for the year ended March 31,
general and administrative expenses increased by 11.9%, 2016 to `21,660 million for the year ended March 31, 2017.
primarily due to an increase in employee compensation, Interest and dividend income decreased by `3,016 million
provisions for doubtful debts and facility expenses and a while gains on sale of investments increased by `840
civil money penalty relating to SEC investigation, partially million during the year ended March 31, 2017 as compared
offset by savings in travel costs. to the year ended March 31, 2016. This net decrease was due
to a reduction in the yield on investments during the year.
Other operating income: During the year ended March 31,
2017, we concluded the sale of our EcoEnergy division for a Income Taxes: Our income taxes decreased by `153 million
consideration of `4,670 million. The net gain from the sale, from `25,366 million for the year ended March 31, 2016
amounting to `4,082 million, has been recorded as other to `25,213 million for the year ended March 31, 2017. Our
operating income. effective tax rate increased from 22.1% for the year ended
March 31, 2016 to 22.8% for the year ended March 31, 2017.
Operating Income: As a result of the foregoing factors, our
operating income decreased by 3.1%, from `96,860 million Profit: Profit attributable to non-controlling interest
for the year ended March 31, 2016 to `93,879 million for the decreased from `492 million for the year ended March 31,
year ended March 31, 2017. As a results of the above, our 2016 to `248 million for the year ended March 31, 2017.
results from operating activities as a percentage of revenue
(operating margin) decreased by 194 bps from 18.8% to As a result of the foregoing factors, our profit attributable
16.8%. to equity holders decreased by `4,180 million or 4.7%, from
`89,075 million for the year ended March 31, 2016 to `84,895
million for the year ended March 31, 2017.
Please see Note 30 of the Notes to the Consolidated Financial Statements for additional details
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(Figures in ` Million except 2017 2016# Profitability: Our gross profit as a percentage of our IT
otherwise stated) Products segment revenue decreased by 343 bps primarily
Revenue1 25,922 29,722 on account of product pricing pressure, cost escalations in
certain projects and the depreciation of the Indian rupee
Gross Profit 957 2,116
resulting in higher product costs.
Selling and Marketing (1,274)
(621)
expenses Selling and Marketing Expenses: Selling and marketing
General and administrative (1,849) expenses as a percentage of revenue from our IT Products
(2,016) segment decreased from 4.3% for the year ended March 31,
expenses
Operating Income (1,007) 2016 to 2.4% for the year ended March 31, 2017 due to an
(1,680) optimization of head count. In absolute terms, selling and
As a Percentage of Revenue: marketing expenses decreased by ` 653 million.
Gross Margin 3.7% 7.1%
General and Administrative Expenses: General and
Selling and Marketing 4.3% administrative expenses as a percentage of revenue from
2.4%
expenses our IT Products segment increased from 6.2% for the year
General and administrative 6.2% ended March 31, 2016 to 7.8% for the year ended March
7.8%
expenses 31, 2017. In absolute terms, general and administrative
Operating Margin (6.5)% (3.4)% expenses increased by `167 million primarily on account
of increases in the provision for doubtful debts in our India
business. .
1. For the purpose of segment reporting, we have included the impact of
exchange rate fluctuations amounting to `80 million and `81 million
for the years ended March 31, 2016 and 2017, respectively in revenue. Segment Results: As a result of the above, in absolute
Further, finance income on deferred consideration earned under multi- terms, segment results of our IT Products segment recorded
year payment terms in certain total outsourcing contracts is included
a loss of `1,680 million for the year ended March 31, 2017
in the revenue of the respective segment and is eliminated under
reconciling items. as compared to a loss of `1,007 million for the year ended
# We elected to early- adopt IFRS 9, Financial Instruments effective April 1, 2016 March 31, 2016.
with retrospective application from April 2015. Our financials are adjusted with
the same.
Please see Note 30 of the Notes to the Consolidated Financial Statements for additional
details.
amounting to `22,132 million. Payment toward the located in these geographies may reduce or postpone their
dividend including dividend distribution tax and buy technology spending significantly. Reduction in spending
back of shares for the year ended March 31, 2017 on IT services may lower the demand for our services and
amounted to `33,734 million. Dividends paid in the negatively affect our revenues and profitability. Our clients
year ended March 31, 2017 represents final dividend are concentrated in certain key industries. Any significant
declared for the year ended March 31, 2016 amounting decrease in the growth of any one of these industries, or
to `1 per share and interim dividend for the year March widespread changes in any such industry, may reduce or
31, 2017 amounting to `2 per share. alter the demand for our services and adversely affect our
revenue and profitability.
As of March 31, 2017, we had contractual commitments of
`12,238 million ($189 million) related to capital expenditures Taxation Risks: Our profits for the period earned from
on construction or expansion of software development providing services at client premises outside India are
facilities, `20,776 million ($320 million) related to non- subject to tax in the country where we perform the work.
cancelable operating lease obligations and `21,349 million Most of our taxes paid in countries other than India can
($329 million) related to other purchase obligations. Plans to be applied as a credit against our Indian tax liability to the
construct or expand our software development facilities are extent that the same income is subject to taxation in India.
determined by our business requirements. Currently, we benefit from certain tax incentives under
Indian tax laws. These tax incentives include a tax holiday
from payment of Indian corporate income taxes for our
Shareholder returns businesses operating from specially designated Special
Economic Zones (SEZs). Changes to these incentives and
Dividend: During the year ended March 31, 2017 the Board
other exemptions we receive due to government policies can
declared an Interim Dividend of ` 2 per equity share. The
impact our financial performance.
Board recommended the adoption of the Interim Dividend of
` 2 per equity share as the Final Dividend for the year ended
Wage Pressure: Our wage costs in emerging markets have
March 31, 2017. Thus, the total Dividend for the year ended
historically been significantly lower than wage costs in the
March 31, 2017 remained at ` 2 per equity share.
developed markets for comparably skilled professionals, and
this has been one of our competitive advantages. However,
Bonus: On April 25, 2017, the Board recommended a
wage increases in emerging markets may prevent us from
proposal for issue of Bonus Equity Shares in the proportion
sustaining this competitive advantage and may negatively
of 1:1 that is 1 (One) bonus equity share of `2/- each for
affect our profit margins. We may need to increase the levels
every 1 (One) fully paid-up equity share held (including ADS
of our employee compensation more rapidly than in the past
holders). The Record date has been fixed as June 14, 2017 to
to retain talent. Unless we are able to continue to increase
determine eligible shareholders who are entitled to receive
the efficiency and productivity of our employees over the
bonus shares. The bonus issue is likely to be completed on
long term, wage increases may reduce our profit margins.
or before June 24, 2017.
Inability to provide adequate wage increase may result in
attrition and impact competitiveness.
Buyback: During the year ended March 31, 2017, the
Company concluded the buyback of 40 million equity
General Market Risk: Market risk is the risk of loss of future
shares at a price of `625 per equity share, as approved by
earnings, to fair values or to future cash flows that may
the Board of Directors on April 20, 2016. This has resulted
result from a change in the price of a financial instrument.
in a total cash outflow of `25,000 million (US $ 386 million).
The value of a financial instrument may change as a result
Consequent to such buy back, share capital has reduced by
of changes in the interest rates, foreign currency exchange
` 80 million.
rates and other market changes that affect market risk
sensitive instruments. Market risk is attributable to all
Further, the Company has announced that the Board of
market risk sensitive financial instruments including
Directors will consider a proposal for the buyback of equity
investments, foreign currency receivables, payables and
shares of the Company around July 2017.
loans and borrowings. Our exposure to market risk is a
function of investment and borrowing activities and revenue
generating activities in foreign currency. The objective of
Key risks market risk management is to avoid excessive exposure of
our earnings and equity to losses.
Global economic crisis: We derive approximately 55% of our
IT Services revenue from the Americas (including the United
States) and 24% of our IT Services revenue from Europe.
If the economy in the Americas or Europe is volatile or
conditions in the global financial market deteriorate, pricing
for our services may become less attractive and our clients
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We have designated certain derivative instruments as cash the business, including adherence to the Companys policies,
flow hedges to mitigate the impact of foreign exchange the safeguarding of its assets, the prevention and detection
exposure on Profit and Loss account and forecasted highly of frauds and errors, the accuracy and completeness of the
probable cash flows. We have also designated foreign accounting records, and the timely preparation of reliable
currency borrowings as hedges against respective net financial disclosures.
investments in foreign operations.
Human
capital
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The market today is witnessing significant disruptions led competencies. Anticipating and defining future
by business model transformation of companies driven by needs and developing these competencies in the
technology. The high demand for automation and digitization employees is vital to organizational sustainability.
has reduced technology cycles and skills are becoming We will continue to invest in our fresher skill
commoditized more rapidly than before. Meeting rapidly building programs, architect, domain, delivery
evolving customer requirements requires a high level of transformation, sales cadre and leadership skills.
competence, expertise and learning agility. Co-innovation, Our programs are aimed at upskilling, cross-skilling,
collaborative working and crowd sourcing are capabilities and reskilling along with building Design Thinking
which are fast becoming the norm. capability to drive ideation and innovation.
is multi-dimensional and consists of four pillars gender, for women technologists in Wipro was hosted
persons with disability, nationality, and underprivileged where 800 women technologists participated
communities. Our collaboration with research partners and Women of Wipro(WoW) speaker series Senior
industry platforms like Catalyst, CII, NASSCOM, Diversity women leaders from client organizations
and Equal Opportunity Centre (DEOC) bring to the fore focus conducted open connect sessions with women
areas and industry trends which help in shaping our D & I employees of Wipro under the aegis of WoW
charter. Speaker Series.
Day Care Centers for employees children
were inaugurated in our Hyderabad and
Bangalore premises. The day care centers are
well equipped and have seen enthusiastic
D & I Awards 2016-17 registrations from our employees. This will
continue to be a key focus area for the coming
year as we evaluate tie ups or opening in house
Wipro won Innovative Policies & Practices for day care centers in other locations.
Persons with Disabilities Award 2017 by Zero Thought Leadership and Advocacy: Wipro has
Project, Vienna. participated in various eminent forums by
bodies like SHRM (Society for Human Resource
Wipro won Excellence in Diversity & Inclusion
Management), NASSCOM, Catalyst, NHRDN
award at SHRM India HR Awards 2016 (National HRD Network), during the year. This
Wipro was awarded a runners Up in Diversity year Catalyst and Wipro co-hosted a Round
& Inclusion in the Corporate HR Best Practices table on Strategies to Retain Mid-Career
category at NHRD HR showcase 2016 event Women.
platform to recognise talent across various Over 157,000 participants (employees, contractors
award categories. and service providers) attended trainings on
Thought Leadership and Advocacy: Wipro Health & Safety covering Occupational Health,
sponsored National Seminar on Disability Transportation, Hospitality, Emergency Response
Inclusion across all 17 Sustainable and Security domains.
Developments Goals by NCPEDP. We
participated in the CII platform on new Rights
of Persons with Disabilities (RPD) bill 2016
Webinar series and shared best practices in
Wipro.
We carried out evaluation work in partnership
with DEOC on the status of disability inclusion
Health & Wellness
during the year. All processes were audited from Awards 2016-17
Inclusion perspective i.e. Policies, Accessible
Infrastructure, Accessible Information
Wipro won Employer with best Employee Health
Systems, Recruitment, Training, Awareness and
and Wellness Initiative award at SHRM India HR
Engagement. Audit results have been taken
Awards 2016
ahead for action in the current year FY 18.
Wipro Ranked No 1 in CGP ( Chestnut Global
Partners) Health and Wellness Ranking 2016
Employee Well Being and Safety
Wipro won the Platinum Arogya World Healthy
Workplace FY2016 award in the
We have institutionalized health and safety processes
Health & Wellness category
including trainings for service providers, risk assessments,
ergonomic session for employees, vaccination campus,
health awareness sessions and regular cafeteria food
inspections. There is special focus on aspects such as
womens safety, assistance to persons with disability,
emergency response, and preventive health & safety
measures.
Employee Engagement & Empowerment
Key highlights:
Hazard Communication: Employee connect Wipro holds employee feedback in very high regard and
programs conducted to bring awareness among solicits this through formal surveys, informal forums like
employees on reporting of hazards, unsafe one to one meetings, All Hands Meetings, focus group
conditions and unsafe acts to help in reduction of discussions, roundtables and team meetings. Through
Injury rate. its social networking platform, Yammer, it has enabled
Programs were held across locations in India on employees to crowd source ideas & suggestions, provide
emergency response, mock evacuation drills, hazard real-time feedback and ask queries directly to leaders /
recognition, driver safety training, first aid training, functional teams. We actively scan for any specific issues &
fire-fighting training etc. risks relating to human rights and labour practices through
Vehicle based Quick Reaction Teams deployed in these various engagement platforms. Some of these
major locations continues to provide services to engagement platforms detailed below:
ensure safe commute and help during emergencies.
Womens Safety: Security teams are trained Freedom of Association: We respect the right
on gender sensitization as a part of their on- of employees to free association without fear of
job training and induction. Cab pickup and drop reprisal, discrimination, intimidation or harassment.
facility with security escort is available for women A small proportion of our employees (~2%) are
employees travelling in night hours. Women of represented through local employee representative
Wipro committees are formed to discuss concerns groups, Works Councils and /or Trade Unions in
and suggestions on womens safety. In FY 17, 1900+ Australia, Austria, Brazil, Czech Republic, Finland,
women employees have undergone the Security France, Germany, Ireland, Italy, Netherlands, Poland,
Awareness and Self Defense sessions conducted Romania and Sweden. In some of these countries,
across locations. Collective Bargaining agreements are required by
Womens Health: Breast cancer awareness and tests law. The HR function meets these groups periodically
were conducted across locations,; 800+ women to inform and consult on any change that can impact
employees participated during the event work environment. We pro-actively engage with
Cafeteria Hygiene: Regular inspections and audits Works Councils and Unions when it comes to client
performed by both internal and external teams. employee transfers under the EU Directive of Transfer
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of Undertaking and respective local legislation workers are in compliance with relevant Minimum
such as TUPE, Art. 613a German Civil Code, Art 338 Wages legislations. We ensure that the temporary
Czech Labour Code etc. Engagement starts in early contract workers work under the similar working
stage and provides first-hand information to client conditions as employees and employee benefits
employee representatives on terms and conditions such as recreation and refreshments are also made
as well as collective employment matters. available to them.
Employee Perception Survey (EPS): Our formal
mechanism to capture employee feedback is Enabling Careers
through (1) Biennial Employee Perception Survey
(EPS), and (2) a shorter dipstick survey (EPS Pulse) Our performance management system is designed to achieve
which is held between two EPS cycles. EPS Pulse holistic employee development through performance
survey 2016 saw both an increase of participation differentiation, transparency, and effective evaluation. There
and engagement from the previous biennial survey in is a structured process of formally and objectively evaluating
2015. Our employee engagement scores went up by ones performance against defined goals & objectives.
12.5 percentage points and employee participation We continue to drive a high-performance culture. In FY17,
scores went up by 3 percentage points. Our in- we institutionalized the practice of quarterly employee
house built EPS analytics tool provides analysis of appraisal. This enables employees to excel based on regular
the results at various levels e.g geography, business feedback. Learning modules were launched to enable
unit, gender, career levels, age, nationality, tenure managers and employees alike to embrace the new process
and enables us to formulate action plans. EPS of Performance management. We also piloted the Agile
Pulse 2016 results have already been studied and Performance Management system for those in Agile roles.
action areas based on employee feedback have
been finalized for the upcoming year. These include As part of the performance evaluation process, a 360-degree
key initiatives around Process Simplification, feedback is provided on leadership competencies for middle
Manager Effectiveness, Careers & Capability. and senior management roles. Appropriate development
plans and interventions are then charted out based on
Overall this formal feedback process of EPS discussion between manager and employee.
helps us to identify and mitigate risks on human
rights and any other organisation processes. One of our other initiatives in this category is Talent
Marketplace, which enables internal role fulfillment of
Contract Employee Engagement: Our focus on senior roles. The objective of the initiative is to connect talent
responsible people practices extends across our to opportunities within the organization so as to retain the
people value chain, and covers contract employees senior skilled talent pool. In FY 17 internal redeployment as
and retainers. A Partner Employee Engagement a % of total fulfillment was at 66% for senior/strategic roles.
team (PEET) is responsible for building an engaged
and motivated contract workforce deployed on IT Capability
delivery projects. In FY 16-17, the PEET team led
various initiatives like client-site visits to meet While technology is fast automating manual work, there
contractor employees to understand needs and is a new breed of jobs that have evolved and will continue
concerns, initiated programs to build capability to make use of technology as a tool and encompass use of
through training programs. Focused initiatives broader skill sets to respond to market demands. In FY 17, our
through these programs have led to higher learning and development (L & D) function launched multiple
engagement levels. Audits are conducted by programs to upskill/reskill employees in technical as well as
PRO (Partner Relation Office) to ensure that the behavioral competences. Employees built their capabilities
statutory and labour/ human rights requirement through classroom trainings, e-learning modules, expert
are complied. Our key focus area continues to be and peer learning, project trainings, webinar participation,
to check and implement processes and procedures outbound trainings, on-job learnings & mentoring.
at regular intervals and in a phased manner based
on audit findings, feedback from various forums,
open houses, and employee connect programs.
The focus in FY 17 has been on growing new businesses Digital Training: In line with the growing demand
with existing customers, becoming strategic partner for our for Digital Services, we continue to augment our
customers, building strong digital skills and core technical workforce with digital skills. Against our annual plan
competencies. of training over 33,000 people in FY17, we trained
over 39,000 employees. Overall, now we have
Learning and Development Awards: Wipro won reached over 60,000 technical employees trained on
the prestigious ATD (Association for Talent Digital skills.
Development) Best* Award for 2016. This is the Building core technical competencies: Trend.nxt
10th time that we are winning this award. The BEST Competency framework in which employees are
Awards recognizes the learning and development encouraged to build depth and width of knowledge in
initiatives of our organization. technical skills has helped us to build strong skills
Delivery Transformation: To increase the breadth across employees, in FY17 over 21,000 employees
and depth of engagement with existing customers acquired additional skills in upto 4 technology areas.
and take Delivery to next higher level, we trained Through our crowd sourcing platform (TopGear),
2000+ delivery leaders from strategic accounts we have created 70+ customized cloud based
through two programs called WinMore - Account development environments that enable our
Mining for Growth & ADROIT for Behavioral workforce to develop Proof of Concepts, Use Cases,
Transformation . These programs are designed for and Assignments in high-demand technologies.
delivery leaders to enable them to do delivery-led 32,000+ employees have enrolled themselves
sales and next-generation delivery through this platform. Employees have so far
Sales Transformation: In this digital enabled contributed to over 20000 assignments and case
business environment, customers no longer look studies and over 100 IP Development/Solution
for technology services but emphasize on business projects. Many of our large accounts have started
outcomes. Customers are looking for a strategic using this platform to introduce new-age skills
partner to co-create a vision and execution strategy. to their teams to fulfill their upcoming client
Keeping this in mind, a new training program demands and create a fungible future ready team.
OneVoice was developed for sales transformation
which trains our sales /customer facing people In nutshell, today we are fully geared up for future
with more consultative selling and selling digital business needs from technical, behavioral and
solutions. 2,000+ participants have been covered digital competencies standpoint. Our efforts in
through the One Voice Program. We are also creating capability building space have helped us increasing
a continuum between our delivery and sales teams our financial capital by fetching additional business
through a program called PRISM, which grooms opportunities & Intellectual Capital by increasing
delivery people to become effective sales people. the technical skill sets of our existing workforce.
Summary dashboard
HR indicators 2017 2016
Overall Employee Strength
Head count*** - as on March 31 181,482 172,912
Diversity & Inclusion
Gender Ratio 33% 32%
Number of Nationalities 106 105
Number of people with disabilities
334 368
as on 31st March
Number of people with disabilities
39 17
hired
Employee Engagement & Well Being * IT Services excluding BPS, Cellent, DesignIT, HPS and Appirio
** IT Services excluding BPS, Cellent, DesignIT, HPS, Appirio
Voluntary Attrition LTM %* 16.3 % 16.1 % and IME
*** For IT Services. Employee count for IT Services as on
Number of Employee on enterprise 109,000+, 9,400+ 85,000+ , 7,500+
March 31, 2017 is 165,481. In addition, contractors and
social platform groups groups retainers augment our employees.
In addition we deploy personnel for security services, facility
Gross Utilization** 71.5 % 68.8% management and other allied services through our partners.
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Social and protocols developed by industry consortium like the JAC (Joint
Audit Consortium) from Europe based telecom companies and
the Pharmaceutical Supply Chain Initiative (PSCI).
relationship Highlights of the year
Suppliers
Our focus for the next couple of years will be the following:
Supply Chain Audits/Assessments covering
We value our suppliers as key stakeholders and believe in compliance and sustainability risk aspects: To conduct
engaging with them beyond the scope of legal compliance. onetime audit for 300 identified suppliers and ongoing
The program is driven more by responsible engagement and regular audit program.
commitment as guided by our values. Our Code of Business Supplier Diversity Program for Facilities Management
Conduct provides the ethical guidelines and expectations category: To engage diverse suppliers for sourcing
for conducting business and directs Wipros relationship specific sub-categories of products/services.
with its suppliers. The Code is applicable to all suppliers, Green Procurement program for ICT Hardware and
agents, service providers, channel partners, dealers and Electronic End of Life: To engage on key aspects with
distributors. The procurement policy addresses social and 10 strategic suppliers based on our Green Procurement
environmental aspects like green procurement, supplier Guidelines. For desktops, laptops and display
diversity, equal opportunity in sourcing and accessibility of equipment our guidelines are in accordance with the
goods and services for people with disabilities. EPEAT (Electronic Product Environmental Assessment
Tool) standard from Green Electronics Council.
Our Supply Chain Engagement is a journey where Managed Print Services: This outcome based model
sustainability is increasingly becoming critical. Our approach helps bring operational efficiency through better
to engagement is multi-pronged and the focus is to improve controls, analytics, reduced resource consumption
the capabilities of suppliers in managing their sustainability (paper, toner) and planned asset refresh.
performance. The approach is represented below: E-Waste management: All empaneled vendors
are independently verified as per Wipro e-waste
management guidelines. We continue to focus
Inform Collaborate on requirements of regulatory compliance, asset
Communicate intent Educate our suppliers
recovery and traceability of material.
and requirements to on environmental,
social and governance
our suppliers Supplier Diversity: Wipro is an Equal Opportunity employer
best practices to be
incorporated in their and strongly advocates the same through its supply chain
business by encouraging supplier diversity. Qualified enterprises
owned by person with disability or women are identified and
ENGAGE engaged with. The spend from these suppliers constitute
3% total supplier spend ( as declared by supplier and not
verified).
Key programs in community care upgradation program for about 250 such workers
About 60,000 people benefitted from livelihoods
projects as part of our disaster rehabilitation work in
Wipro cares Cuddalore, Tamil Nadu and Utharkashi, Uttatrakand.
Projects on water include setting up or reviving
Wipro Cares is a not-for-profit trust that engages with our rainwater harvesting systems in schools,
proximate communities on the issues of education for the maintenance of a lake, and a study of groundwater
underprivileged, primary healthcare, children with disability resources
and environment. In addition, the trust also works on long-
term rehabilitation of affected communities after natural
disasters. The focus areas and the scope of work are: Wipro South Africa initiatives
Education Support direct way access to As an IT company operating in South Africa, Wipros CSR
educational opportunities for underprivileged strategy in South Africa is aligned to the Broad-Based Black
children Economic Empowerment (BBBEE) Codes of Good Practice,
Children with Disability Supports the educational particularly the ICT Charter for responsible corporate
and rehabilitative needs of underprivileged children citizenship. The primary purpose of BBBEE is to address
with disabilities the legacy of apartheid policies and enhance the economic
Primary health care Work with partners in the participation of previously disadvantaged people in the
delivery of good quality health care services to South African economy. The codes include elements on
underprivileged communities around our locations ownership, management control (MC), skills development
and in remote underserved areas. Also build the (SD), enterprise and supplier development (ESD) & socio-
capacity of the communities in terms of higher economic development (SED).
awareness and developing a higher degree of self-
reliance to handle their own primary health care
needs
Community ecology Work on Environment
projects that have direct benefit for underprivileged
communities. Examples are (i) social forestry in
rural areas which provide livelihood opportunities to
poor farmers and (ii) Initiatives on social welfare and
improved working conditions of waste pickers in the
urban waste space
Disaster Rehabilitation Work on long term
rehabilitation of the affected communities after a
natural disaster
Natural The following goals have been set for the period 2015-16 to
2019-20:
Overseas: 163 locations, which includes 7 customer data Energy Intensity: EPI for office spaces, measured in terms
centers. A majority of the office locations overseas are of energy per unit area is flat at 2015 figures of 195 units
leased. per sq. meter per annum. While absolute India offices energy
Management system consumption has decreased by 4% due to energy efficiency,
operating area shows a sharper reduction of 6.3% as of
Our programs and management systems are pivoted and March 2017 due to consolidation of operations. We expect
derived from the Ecological Sustainability Commitment, the EPI metric to show an improvement in 2018 when we
available at http://www.wipro.com/documents/Ecological_ look at full year energy data for consolidated operations.
Sustainability_Policy.pdf. We have been following the
guidelines of the ISO 14001 framework for more than a Emissions Intensity: Our India office space emissions
decade now as one of the cornerstones of our Environmental intensity (Scope 1 and Scope 2) is at 128 Kg Co2 eq. per
Management System (EMS). 18 of our campus sites in India Sq. Mt. per annum, an increase of 4.7% from last year,
and 2 in Australia are certified to ISO 14001:2004 standard. largely due to a decrease of 6.3% in operating area due to
consolidation of operations throughout the year. However
the global people based emissions intensity is down by more
Energy efficiency & GHG than 10% to 1.58 tons per person per annum. Absolute GHG
mitigation emissions reduction of 1.8% for India office operations was
contributed by shift from DG electricity to grid in Chennai,
In 2015-16, we undertook a target setting exercise to energy efficiency measures and RE procurement.
propose targets for the period 2015-16 to 2019-20. We used
the science based target setting framework from WRI (World Energy Consumption: The total energy consumption,
Resource Institute) that tries to align itself with the 2 degree electricity and back-up diesel generated, for office spaces
imperative i.e. global emissions by 2050 to be 20% of 1990 across all global operations in IT is 315 Million Units (India
levels so as to stay within the threshold of 2 degree rise in contributes to 289 Million units). Data centers in India
average surface temperature. We have adopted targets for and overseas (USA and Germany) contribute to another 85
2025 and 2030 also and these will be revisited at the next Million units. 96.6 million units of RE was procured through
target review exercise in 2020. PPAs (Power Purchase agreements) with private producers.
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GHG Scope 1 and 2 working and collaboration are some of the cost and process
(Tons of CO2 Equiv. per Sq. Mt. per annum) optimization measures implemented over past few years. We
have seen an air travel footprint reduction (distance as well
270,000
269,117
as emissions) reduction of over 19% compare to 2015-16.
263,733
Our five year GHG mitigation consists of three key elements IT led soft infrastructure enablers like anytime direct
Energy Efficiency, Renewable Energy (RE) Purchase and connectivity access to office intranet applications, secure
Travel Substitution; of this, RE procurement will contribute personal device connectivity through the BYOD initiative
the maximum, 80% share to GHG emission mitigation (Bring Your Own Devices) are steps in enabling more flexible
strategy. work place options.
Energy Efficiency: These measures include new Scope 3 Emissions: A summary of our Scope 3 emissions
retrofit technologies to improve Chiller and Air (other indirect sources) is provided below. Out of the
Handling Units (AHUs), integrated design and 15 categories of scope 3 reporting as per the new GHG
monitoring platforms. We were one of the early corporate value chain standard, we are presently reporting
adopters of Green Building Design with 18 of our on all of the 8 applicable categories.
current buildings certified to the international LEED
standard (Silver, Gold, and Platinum).Since 2007, GHG Scope 3*
(Tons of CO2 Equiv. per Sq. Mt. per annum)
we have been working on a server rationalization
and virtualization program, through which we
have decommissioned old physical servers and 300,000
279,701
replaced the processing capacity with virtualization
technology on fewer numbers of servers. As of 275,000
Purchased goods and services Yes Based on purchase ledger for 2015-16 and application of
Capital Goods econometric input-output model for different categories and
business activities: 55, 588 tons of CO2 equiv.
Fuel- and energy-related activities Yes Well To Tank (WTT) and Transmission and Distribution (T&D)
(not included in scope 1 or scope 2) losses globally is 103,504 tons of CO2 equiv.
Employee commuting Yes For India operations, which represents nearly 85% of footprint
Business travel Yes Includes air, bus, train, local conveyance and hotel stays
Upstream leased assets (Leased Yes This is reported under Scope 1 & 2
office space)
Downstream scope 3 emissions No No product business, leased assets, franchisees or equity
investments with environmental impact
Collaborative engagements Freshwater recycling and efficiency: The per employee water
consumption for the reporting year is 1.119 m3 per month as
As a member of the Indo-US joint research program - the compared to 1.295 in 2015-16, an improvement of around
Solar Energy Research Institute for India and the United 13.5% and absolute reduction of around 152 million litres
States (SERIIUS), we are supporting a long term program of freshwater. We recycle 1050.7 million litres of water in 27
Design and development of Solar PV-based Smart Micro- of our major locations (884.3 million litres in 2015-16) using
Grids in India. In the first year of the program, we have Sewage Treatment Plants (STPs), which represents 38%
completed a modeling and scenario assessment in non- (32% in 2015-16) of the total water consumed. The amount
electrified villages across three sites in Karnataka. of recycled water as a percentage of freshwater extracted
is around 61.7%. This improvement in efficiency is due to
Water efficiency and the ultra-filtration and RO projects for STP treated water we
have undertaken across our large locations.
responsible use
Sourcing of Water: Water input is from four sources - ground
At Wipro, we view water from the three inter-related lens of water, municipal water supplies, private purchase and
Conservation, Responsibility and Security; our articulated harvested rain water with the first two sources accounting
goals are therefore predicated on these three dimensions. for nearly 64% of the sourced water. The majority of the
balance 36% is from private sources near our operational
Water Efficiency facilities. The water supplied by the municipal bodies and
1) Improve water efficiency (fresh water use per the industrial association are in turn sourced primarily from
employee) by 5% year on year river or lake systems. Water that is purchased from private
2) Reduce absolute water consumption in existing sources can be traced to have been primarily extracted from
campuses by 20% between FY16 and FY21 ground water.
Water Responsibility To ensure responsible water
management in proximate communities, especially Community Water Programs: Wipro partners with experts
in locations that are prone to water scarcity organizations, action groups and government bodies to
Water Security Recognizing water availability as a address issues affecting the communities in the vicinity of
business risk, to proactively assess and plan for the our organizations.
water security of the organization in a manner that
is congruent with other two goals Participatory Ground Water Mapping Program (PGWM):
Ground water is a primary source of water in Bengaluru,
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especially for peripheral areas of the city which are not We have set 4 ambitious goals for pollution and waste
connected to the city municipal supply. In the last three years, management and we have achieved 3 goals so far. The details
the program has attempted to explore the issues of ground of our performance against the goals are given below.
water in a 35 sq. km area around our corporate head-quarters
in Bengaluru an area that is completely dependent on Goal 1: Reduce Mixed Solid Waste (MSW) intensity
ground water for its needs and which is largely unregulated. to half by 2017 as compared to 2013-14
This is representative of many rapidly developing urban and MSW intensity decreased from 3.26 Kg to 1.55
peri-urban cities in India; in Bengaluru itself around 40% Kg per employee per annum.
of its water needs is met by ground water. Our approach Goal 2: Reduce landfill intensity to half by 2017 as
was to use a science based approach to understand the compared to 2013-14
hydrogeology of the area and engage communities through Landfill intensity halved from 3.12 to 1.55 Kg
various platforms (citizen science, advocacy, facilitation per employee per annum.
of interventions). The program involved extensive borewell Goal 3: 100% of paper, cardboard, hazardous and
monitoring, VES (Vertical Electrical Sounding) studies and e-waste, mixed metals/scrap and plastics to be
detailed studies in selected clusters. The idea was to evolve recycled/ handled as per approved methods by 2017
a decentralized model of ground water management. 100% recycling of inorganic waste. Waste
segregation at source is implemented as a
The program has established the feasibility of shallow standard practice at all locations and extensive
aquifer as a source of water as well as recharge and its communication with active involvement of
linkages with how we treat surface water systems like employees and our partners has been key to
rivers, lakes, wetlands and wells as part of a connected achieving the goal.
hydrogeological system. In the next phase of the program, Goal 4: 100% of organic waste to be handled inhouse
we intend to expand to other areas of the city and also at owned locations by end of 2017
continue the work on communication and advocacy. Presently, 80% of organic waste is handled
incampus. 20% is sent as animal feed to farms.
Karnataka State Water Network (KSWN): The Karnataka
State Water Network (KSWN) was launched in 2014 by Wipro The total quantum of waste collected was 7484 tonnes in
in partnership with the CII-Karnataka. KSWN is an Industry 2016-17, against 6368 tons in 2015-16. This increase of 17%
outreach that brings Businesses, Government, Academia is primarily due to increase in Construction and Demolition
and Communities on a common platform to address water (C&D) debris from extensive renovation/retrofit work at
challenges. The purpose of KSWN is to create synergies some of our campuses.
and scale among groups with common interest to be a
force multiplier. The network has conducted eight Curated Air Emissions
programmes and two annual conferences till date, where
representatives from six geographical clusters and one We monitor diesel generator stack emissions (NOx, Sox and
theme based cluster around Lakes have come together SPM) and indoor air quality (CO, CO2, VOCs, RSPM) across
towards the creation of Water Sustainable Zones and locations every month. These meet the specified regulatory
restoration of Lakes in Bengaluru. A Water Sustainable Zone norms.
is a geographic area that is partially / fully self-sufficient with
respect to its water requirements i.e., its water foot-print Waste categories
does not substantially exceed its geographic boundaries. (Quantity in tonnes)
The network is now working to scale up its activities for
larger impact, and engage with Government to inform policy.
3,378 (%)
Pollution and waste
Recycle
management 197 (%)
Other
289
Pollution of air and water poses one of the most serious
Landfill
threats to community health and welfare. Our waste
459
management strategies include (i) recycling the waste for Incineration
further use or (ii) arranging for safe disposal. To operationalize
our strategy, we follow segregation of waste into organic,
inorganic, e-waste, hazardous, packaging, and biomedical
and other categories, which is then either recycled in-house
or through outsourced vendor arrangements.
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operational footprint - from energy related emissions, water The above figures are net of our positive valuation that are
consumption, air/water pollution, waste generation and, attributable to our environmental initiatives. Between 2014-
land use change, business travel, employee commute as 15 and 2015-16, Wipros environmental initiatives such
well as from the embedded natural capital in all goods and as emissions reduction activities and renewable energy
services that we procure from our supply chain. procurement reduced its overall environmental costs by
`1,086 million (`884 million in 2014-15). This accounts to
The total environmental costs relating to Wipros operations 9% of the total 2015-16 environmental costs. The valuation
and supply chain was equal to `11,433 million for 2015- for 2016-17 will be completed by August 2017 however the
16. The largest contributions came from GHG emissions trends are unlikely to be significantly different.
(50%), air pollution (19%) and water consumption (20%). The
overall natural capital valuation increased by 14% from the
2014-15 financial year. The operational value chain stage
accounted for 33% of Wipros total environmental cost.
From a geography perspective, India accounts for 83% of the
overall environmental cost.
Value Chain Split (in ` million) Environmental Indicator Valuation (in ` million)
2015-16: 2014-15:
Environmental 2015-16: Valuation % Value Chain Valuation Valuation
% Change
Indicator (` million) Contribution (` million) (` million)
since 2014-15
Supply chain:
Waste 203 2% Employee 1,319 1,258 5%
commuting
Boards
Report
Applications and the emergence of Social Media are specialized IT Services provider for Banking, Financial
shifting the point of decision-making on IT Sourcing Services & Insurance sector in Brazil.
within clients organization from the traditional Chief
As part of a start-up engagement model, your Company
Information Officer to newer stakeholders such as
has invested in building world-class partnerships
Chief Marketing Officer, Chief Digital Officer and
through a US$ 100million corporate venture capital
Chief Risk Officer. These trends on newer business
fund, Wipro Ventures, aimed at investing in cutting
models, emerging technologies and sourcing patterns
edge start-ups in areas such as Digital, Internet of
provides your Company with significant growth
Things, Big Data, Open Source, Cybersecurity, Fintech
opportunities.
and Security, Supplier Collaboration Platform and
Your Companys IT Products segment provides a range Artificial Intelligence (AI). During the fiscal year
of third-party IT Products, which allows it to offer ended March 31, 2017, Wipro Ventures has seen
comprehensive IT System Integration Services. These strong traction and scale. Currently, there are 9 such
products include Computing, Platforms and Storage, investments with a cumulative spend of $ 24.5 million
Networking Solutions, Enterprise Information in start-ups working in Big Data and Analytics (Talena,
Security and Software Products, including Databases Inc.), Artificial Intelligence (Vicarious FPC, Inc.,
and Operating Systems. Your Company has a diverse investments through TLV partners), Internet of Things,
range of clients, primarily in the India and Middle East (Altizon Systems Private Limited), Mobility (Avaamo
markets from small and medium enterprises to large Inc.), Supplier Collaboration Platform (Tradeshift
enterprises in all major industries. Your Company Inc.), Fintech and Security (Vectra Networks Inc.,
continues to focus on being a system integrator of Emailage Corp., Inc. and IntSights Cyber Intelligence
choice where it provides IT Products as a complement Limited)- technologies that are reshaping the future
to its IT Services Offerings rather than sell standalone of enterprises.
IT Products.
Brand
Outlook Your Company is a trusted name in the marketplace,
According to Strategic Review 2017 of the National with an enviable history of business success, built
on a strong set of values. Today, the shifting sands
Association of Software and Service (NASSCOM),
in the market underscore the need to introspect,
in FY17, IT export revenues from India grew by 7.6%,
self-examine and embrace change. A little over a
to an estimated $117 billion. NASSCOM projects the
year ago, your Company embarked on a journey of
Indian Technology & Services industry to reach $200 transformation, with courage and conviction, to shape
billion to $225 billion in revenues by 2020 and over its future. This journey called for a new visual identity.
$350 billion by 2025, from a base of $154 billion in A visual identity that reflects the promise the Wipro
2017. brand makes to its clients - To bring a pioneering,
entrepreneurial spirit and an integrated perspective
Acquisitions and Investments to solve its clients complex business problems.
Acquisitions are a key enabler for driving your Your Company unveiled its new brand identity, and
Companys capability to build industry domain, the new logo represents the way your Company
strengthen its presence in emerging technology areas connect the dots for its clients and bring the power
including Digital and Cloud, and increase market of connected insights with a sense of history now
footprint in newer markets. Your Company focuses seen through a Digital lens for a digital world. The
on opportunities where it can further develop its brand identity embodies the positive energy that each
domain expertise, specific skill sets and its global one of us brings both individually and collectively.
delivery model to maximize service and product Along with the new identity, your Company has
enhancements and higher margins. Your Company rearticulated the Spirit of Wipro. Values are an
also uses its acquisition program to increase intrinsic part of Wipro and are closely aligned with
footprint in certain large customers and pursue select its brand. Your Companys Brand identity is a visual
business opportunities. During the year ended March expression of its core values, the guidepost for its
31, 2017, your Company acquired Appirio Group, a decisions, its culture and what it stands for as an
global Cloud Services company that creates next organization.
generation worker and customer experiences. In Your Companys core Values provide its employees
April 2017, your Company acquired Infoserver S.A., a with the moral compass to deliver on its brand
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69
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promise: Be passionate about clients success, Treat Management Discussion and Analysis Report
each person with respect, Be global and responsible,
and Unyielding integrity in everything we do. In terms of regulation 34 of the Listing Regulations
and SEBI circular SEBI/HO/CFD/CMD/CIR/P/2017/10
Key Awards and Recognitions dated February 6, 2017, your Company has adopted
Your Company is one of the most admired and salient features of Integrated Reporting prescribed
recognized companies in the IT industry. During by the International Integrated Reporting Council
the year, your Company won several awards and (IIRC) as part of its Management Discussion and
accolades, out of which key recognitions are given Analysis report (MD&A Report). The MD&A report,
below: capturing your Companys performance, industry
trends and other material changes with respect
Wipro received the Citi Lean Partner award for to your Companies and its subsidiaries, wherever
2015 in recognition of its high levels of service applicable, are presented from page nos. 24 to 64
and performance. of this Annual Report. The MD&A Report provides
ipro was recognized with the Best Global
W a consolidated perspective of economic, social and
Healthcare and Life Sciences IT Consultancy environmental aspects material to our strategy and
& Outsourcing Company Award 2016 at Global our ability to create and sustain value to our key
Health and Pharmas 2016 International Life stakeholders and includes aspects of reporting as
Sciences Awards. required by regulation 34 of the Listing Regulations
on Business Responsibility Report. Statutory section
Wipro was positioned as a Leader in Everest on Business Responsibility Report is provided from
Groups 2016 PEAK Matrix for Independent
page nos. 319 to 324 to this Annual Report.
Testing Services for the second consecutive year.
III. Governance and Ethics
ipro was included in the Dow Jones
W
Sustainability Index (DJSI) World and Emerging Corporate Governance
Markets for the seventh time in succession.
Wipros governance framework is driven by the
ipro won the Teradata Epic Award for ICP
W objective of enhancing long term stakeholder
Collaborative Revenue category at Teradata value without compromising on ethical standards
Partners Conference & Expo 2016. and corporate social responsibilities. Corporate
Wipro was recognized as the Best Collaboration governance principles are enshrined in the Spirit of
Partner by Land Transport Authority (LTA), Wipro, which form the core values of Wipro. These
Singapore at the Land Transport Excellence guiding principles are also articulated through the
Awards 2016 Companys code of business conduct, Corporate
Governance Guidelines, charter of various sub-
Wipro was recognised a Leader for the Third committees and disclosure policy.
Consecutive Year in Gartners Magic Quadrant
for Application Testing Services, Worldwide As per regulation 34 of the Listing Regulations,
a separate section on corporate governance
Wipro was rated as the leading player in the practices followed by your Company, together with
Zinnov Zones 2016 Product Engineering Services
a certificate from V. Sreedharan & Associates,
report by Zinnov Management Consulting for the
Company Secretaries, on compliance with corporate
seventh consecutive year
governance norms under the Listing Regulations, is
Wipro has been recognized with the Challenge provided at page no. 129 to this Annual Report.
the Future 2017 award by Information Services
Group (ISG), a leading global technology research Board of Directors
and advisory firm. Boards Composition and Independence
Wipro was recognized as the 2017 Worlds Most Your Companys Board consists of global leaders
Ethical Company for the sixth successive year and visionaries who provide strategic direction and
by the Ethisphere Institute, the global leader in guidance to the organization. As on March 31, 2017,
defining and advancing the standards of ethical
the Board comprised three executive directors and
business practices.
seven non-executive Independent Directors.
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Definition of Independence of Directors is derived At the 70 th AGM held on July 18, 2016, Mr. T K Kurien
from regulation 16 of the Listing Regulations, NYSE was re-appointed as Executive Director designated
Listed Company Manual and Section 149(6) of the as Executive Vice Chairman from February 1, 2016
Companies Act, 2013. The Company has received up to March 31, 2017 and Mr. Abidali Z Neemuchwala
necessary declarations from the Independent was appointed as Executive Director designated as
Directors stating that they meet the prescribed Chief Executive Officer from February 1, 2016 up to
criteria for independence. January 31, 2021.
Based on the confirmations/disclosures received At the 69 th Annual General Meeting held on July
from the Directors under section 149(7) of the 22, 2015, Mr. Azim H Premji was re-appointed as
Companies Act 2013 and on evaluation of the Executive Chairman and Managing Director of the
relationships disclosed, the following Non-Executive Company to hold office up to July 30, 2017. Keeping
Directors are considered as Independent Directors: in view Mr. Azim H Premjis rich and varied experience
in the Industry, his involvement in the operations of
a) Mr. N Vaghul the Company over a long period of time, his pioneering
b) Dr. Ashok S Ganguly role in guiding the Company through four decades
of diversification and growth to emerge as a world
c) Mr. William Arthur Owens leader in the Software industry, and pursuant to the
recommendation of Board Governance, Nomination
d) Mr. M K Sharma
and Compensation Committee, the Board at its
e) Ms. Ireena Vittal meeting held over April 24-25, 2017 approved, subject
to Members approval, re-appointment of Mr. Azim H
f) Dr. Patrick J Ennis Premji as Executive Chairman and Managing Director
for a further period of 2 years from July 31, 2017 to
g) Mr. Patrick Dupuis
July 30, 2019.
Number of Meetings of the Board
At the 68th Annual General Meeting held on July 23,
The Board met five times during the financial year 2014, Mr. William Arthur Owens was appointed as
2016-17 on April 19-20, 2016, June 3, 2016, July an Independent Director to hold office up to July 31,
18-19, 2016, October 20-21, 2016 and January 24- 2017. Considering his immense contributions to the
25, 2017. The maximum interval between any two Company and pursuant to the recommendation of
meetings did not exceed 120 days. Board Governance, Nomination and Compensation
Committee and based on the report of performance
Directors and Key Managerial Personnel evaluation, the Board at its meeting held over April
At the 70th Annual General Meeting (AGM) held on July 24-25, 2017 decided to place the proposal for re-
appointment of Mr. William Arthur Owens as an
18, 2016, Dr. Patrick J Ennis and Mr. Patrick Dupuis
Independent Director for a further term of 5 years
were appointed as Independent Directors to hold
from August 1, 2017 up to July 31, 2022, for approval
office from April 1, 2016 up to March 31, 2021.
of the Members at the 71st AGM.
Pursuant to the recommendation of Board Governance,
The Company has received separate notices under
Nomination and Compensation Committee and based
section 160 from Members, along with the requisite
on the report of performance evaluation, the Board
deposit, signifying their intention to propose re-
at its meeting held on April 20, 2016 appointed
appointment of Mr. Azim H Premji and Mr. William
Mr. M K Sharma as Additional Director with effect
Arthur Owens as mentioned in the preceding
from July 1, 2016 and decided to place the proposal
paragraphs. Accordingly, necessary resolutions are
for re-appointment of Mr. N Vaghul and Dr. Ashok S
being placed for approval of the Members at the 71st
Ganguly as Independent Directors for a further term
Annual General Meeting of the Company.
of 3 years up to July 31, 2019 and Mr. M K Sharma as
Independent Director for a further term of 5 years Pursuant to the provisions of section 152 of the
up to June 30, 2021, for approval of the Members Companies Act, 2013 and Articles of Association of
at the 70 th AGM. The aforesaid appointments/re- the Company, Mr. Abidali Z Neemuchwala will retire
appointments were approved by the Members at the by rotation at the 71st AGM and being eligible, has
70 th AGM held on July 18, 2016. offered himself for re-appointment.
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Mr. Vyomesh Joshi resigned as Independent Director Evaluation of the Board was based on criteria
with effect from close of business hours of July 19, such as composition and role of the Board, Board
2016 and Dr. Jagdish N Sheth retired from the Board communication and relationships, functioning of
effective July 18, 2016. Board Committees, review of performance and
compensation to Executive Directors, succession
Mr. T K Kurien ceased to be the Executive Vice
planning, strategic planning, etc.
Chairman with effect from close of business hours
on January 31, 2017, consequent to his retirement Evaluation of Directors was based on criteria such
from the Company. as participation and contribution in Board and
Committee meetings, representation of shareholder
The Board places on record immense contributions
interest and enhancing shareholder value, experience
made by Mr. Vyomesh Joshi, Dr. Jagdish N Sheth and
and expertise to provide feedback and guidance to
Mr. T K Kurien to the growth of your Company over the
top management on business strategy, governance
years.
and risk, understanding of the organizations strategy,
Committees of the Board risk and environment, etc.
The Companys Board has the following committees: The outcome of the Board evaluation for financial year
2016-17 was discussed by the Board Governance,
1. Audit, Risk and Compliance Committee, which Nomination and Compensation Committee and
also acts as the Risk Management Committee the Board at their meeting held in April 2017. The
Board has received consistent ratings on its overall
2.
Board Governance, Nomination and effectiveness and has been rated comparatively
Compensation Committee, which also acts as higher this year for composition of Directors and their
the CSR Committee skills, attributes and experience. The Board has also
noted areas requiring more focus in the future.
3. Strategy Committee
Policy on Directors Appointment and Remuneration
4. Administrative and Shareholders/Investors
G r i e v a n c e C o m m i t t e e ( S t a k e h o l d e r s The Board Governance, Nomination & Compensation
Relationship Committee) Committee has framed a policy for selection and
appointment of Directors including determining
Details of terms of reference of the Committees, qualifications and independence of a Director,
Committee membership and attendance at meetings Key Managerial Personnel, Senior Management
of the Committees are provided in the Corporate Personnel and their remuneration as part of its
Governance report from page nos. 118 to120 of this charter and other matters provided under Section
Annual Report.
178(3) of the Companies Act, 2013. The policy
Board Evaluation covering these requirements is provided in the
Corporate Governance report at page no. 115 to this
In line with the Corporate Governance Guidelines of Annual Report. We affirm that the remuneration paid
the Company, Annual Performance Evaluation was to Directors is as per the remuneration policy of the
conducted for all Board Members as well as the Company.
working of the Board and its Committees.
Vigil Mechanism
This evaluation was led by the Chairman of the
Board Governance, Nomination and Compensation Your Company has adopted an Ombuds process as
Committee with specific focus on the performance a channel for receiving and redressing complaints
and effective functioning of the Board. The Board from employees and Directors, as per the provisions
evaluation framework has been designed in of Section 177(9) and (10) of the Companies Act, 2013
compliance with the requirements under the and regulation 22 of the Listing Regulations.
Companies Act, 2013 and the Listing Regulations,
Under this policy, your Company encourages its
and in consonance with Guidance Note on Board
employees to report any fraudulent financial or other
Evaluation issued by SEBI recently. The Board
information to the stakeholders, and any conduct that
evaluation was conducted through questionnaire
results in violation of the Companys code of business
having qualitative parameters and feedback based
conduct, to the management (on an anonymous basis,
on ratings.
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if employees so desire). Further, your Company has Compliance Committee and the Board periodically
prohibited discrimination, retaliation or harassment monitor status of compliances with applicable laws
of any kind against any employees who, based on the based on quarterly certification provided by senior
employees reasonable belief that such conduct or management.
practice have occurred or are occurring, reports that
Directors Responsibility Statement
information or participates in the investigation.
Your Directors hereby confirm that:
Mechanism followed under Ombuds process is
appropriately communicated within the Company (a) in the preparation of the annual accounts, the
across all levels and has been displayed on the applicable accounting standards have been
Companys intranet and website at www.wipro.com. followed along with proper explanation relating
to material departures;
The Audit, Risk and Compliance Committee
periodically reviews the functioning of this (b) the Directors have selected such accounting
mechanism. No personnel of the Company were policies and applied them consistently and
denied access to the Audit, Risk & Compliance made judgments and estimates that are
Committee. reasonable and prudent so as to give a true and
fair view of the state of affairs of the Company
Related Party Transactions at the end of the financial year and of the profit
and loss of the Company for that period;
Your Company has historically adopted the practice
of undertaking related party transactions only in the (c) the Directors have taken proper and sufficient
ordinary and normal course of business and at arms care for the maintenance of adequate accounting
length as part of its philosophy of adhering to highest records in accordance with the provisions of the
ethical standards, transparency and accountability. Companies Act, 2013 for safeguarding the assets
In line with the provisions of the Companies Act, 2013 of the Company and for preventing and detecting
and the Listing Regulations, the Board has approved fraud and other irregularities;
a policy on related party transactions. An abridged
policy on related party transactions has been placed (d) the Directors have prepared the annual accounts
on a going concern basis; and
on the Companys website www.wipro.com.
(e) the Directors, have laid down internal financial
All Related Party Transactions are placed on a
controls to be followed by the Company and that
quarterly basis before the Audit, Risk and Compliance
such internal financial controls are adequate
Committee and before the Board for approval. Prior
and operating effectively;
omnibus approval of the Audit, Risk and Compliance
Committee is obtained for the transactions which are (f) as required under Section 134(5)(f) of the
of a foreseeable and repetitive nature. Companies Act, 2013, and according to the
information and explanations presented to
The particulars of contracts or arrangements with
us, based on the review done by the Audit,
related parties referred to in section 188(1) and Risk and Compliance Committee and as
applicable rules of the Companies Act, 2013 in Form recommended by it, we, the Board, hereby,
AOC-2 is provided as Annexure I to this Annual Report. state that adequate systems and processes,
Compliance Management Framework commensurate with the size of the Company
and the nature of its business, have been put
Your Company has a robust and effective framework in place by the Company, to ensure compliance
for monitoring compliances with applicable laws. The with the provisions of all applicable laws as per
Board has approved a Global Statutory Compliance the Companys Global Statutory Compliance
Policy providing guidance on broad categories Policy and that such systems and processes
of applicable laws and process for monitoring are operating effectively.
compliance. In furtherance to this, your Company has
W ipro Employee Stock Option Plans (WESOP)/
instituted an online compliance management system
Restricted Stock Unit Plans
within the organization to monitor compliances
and provide updates to senior management and In order to motivate, incentivize and reward
Board on a periodic basis. The Audit, Risk and employees, your Company has instituted various
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employee stock options plans/restricted stock unit assets, the prevention and detection of frauds
plans from time to time. The Board Governance, and errors, the accuracy and completeness of the
Nomination and Compensation Committee accounting records, and the timely preparation of
administers these plans. The stock option plans are reliable financial disclosures.
in compliance with Securities and Exchange Board of
India (Share Based Employee Benefits) Regulations, Risk Management
2014 (Employee Benefits Regulations) and there Given the diversified scale of operations, your
have been no material changes to these plans Company has put in place an Enterprise Risk
during the financial year. Disclosures on various Management (ERM) framework and adopted an
plans, details of options granted, shares allotted enterprise risk management policy based on
upon exercise, etc. as required under the Employee globally recognized standards. The ERM framework
Benefits Regulations read with Securities and is administered by the Audit, Risk and Compliance
Exchange Board of India circular no. CIR/CFD/POLICY Committee. The objective of the ERM framework
CELL/2/2015 dated June 16, 2015 are available on is to enable and support achievement of business
the Companys website at http://www.wipro.com/ objectives through risk-intelligent assessment
investors/financial-information/annual-reports/. No while also placing significant focus on constantly
employee was issued stock option during the year identifying and mitigating risks within the business.
equal to or exceeding 1% of the issued capital of the
Company at the time of grant. Further details on the Companys risk management
framework is provided in the MD&A report.
Wipro Equity Reward Trust (WERT) is an ESOP Trust
set up by your Company. Pursuant to approval by Statutory Auditors
the shareholders at their meeting held in July 2014,
the Company is authorized to transfer shares from Pursuant to the provisions of section 139 of the
the WERT to employees on exercise of vested Indian Companies Act, 2013, an audit firm can act as
RSUs. auditors of a listed company for a maximum tenure
of two terms of 5 consecutive years. For the purpose
Particulars of Employees of reckoning this limit, existing tenure of the auditors
needs to be counted. Further, companies have been
Information required pursuant to Section 197(12)
given a transition time of 3 years from April 1, 2014
of the Companies Act, 2013 read with Rule 5(1) of
to comply with this provision.
the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014 is provided as As per the above requirement , the term of
Annexure II to this report. Companys auditors, BSR & Co. LLP, (Registration
No.101248W/W-100022) Chartered Accountants,
A statement containing, inter alia, the names of top
Bangalore, comes to an end with the conclusion of
ten employees in terms of remuneration drawn and
audit for the financial year 2016-17.
every employee employed throughout the financial
year and in receipt of remuneration of ` 102 lakhs or After conducting a detailed evaluation and based on
more, and employees employed for part of the year the recommendation of Audit, Risk and Compliance
and in receipt of ` 8.50 lakhs or more per month, Committee, the Board approved the proposal for
pursuant to Rule 5(2) the Companies (Appointment placing at the 71st AGM the matter of appointment of
and Remuneration of Managerial Personnel) Rules, Deloitte Haskins & Sells LLP, Chartered Accountants
2014 is provided as Annexure III to this report. (Registration No. 117366W/W-100018) as statutory
auditors of the Company for a term of 5 years from
IV. Internal Financial Controls and Audit
the financial year 2017-18 onwards on such terms
Internal Financial Controls and their Adequacy and conditions and remuneration as may be decided
by the Audit, Risk and Compliance Committee. A
The Board of your Company has laid down internal resolution to that effect forms part of notice of the
financial controls to be followed by the Company and 71st AGM sent along with this Annual Report.
that such internal financial controls are adequate
and operating effectively. Your Company has adopted Auditors Report
policies and procedures for ensuring the orderly and
efficient conduct of its business, including adherence There are no qualifications, reservations or adverse
to the Companys policies, the safeguarding of its remarks made by BSR & Co. LLP, Statutory Auditors,
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74
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in their report for the financial year ended March 31, forms part of Board Governance, Nomination and
2017. Compensation Committee. The Committee consists of
three independent directors, Dr. Ashok S Ganguly, Mr. N
Pursuant to provisions of section 143(12) of the Vaghul and Mr. William Arthur Owens, as its members.
Companies Act, 2013, the Statutory Auditors have not Dr. Ashok S Ganguly is the Chairman of the Committee.
reported any incident of fraud to the Audit, Risk and
Compliance Committee during the year under review. Particulars Regarding Conservation of Energy
and Research and Development and Technology
Secretarial Audit Absorption
Pursuant to the provisions of Section 204 of Details of steps taken by your Company to conserve
the Companies Act, 2013 and the Companies energy through its Sustainability initiatives,
(Appointment and Remuneration of Managerial Research and Development and Technology
Personnel) Rules, 2014, the Company has appointed Absorption have been disclosed as part of the MD&A
Mr. V Sreedharan, Partner, V Sreedharan & Associates, Report.
a firm of Company Secretaries in Practice, to conduct
Secretarial Audit of the Company. Report of the VI. Other Disclosures
Secretarial Audit in Form MR-3 for the financial year
ended March 31, 2017 is enclosed as Annexure IV to Foreign Exchange Earnings and Outgoings
the Report. There are no qualifications, reservations During the year 2016-17, your Companys foreign
or adverse remarks made by the Secretarial Auditor exchange earnings were ` 404,000 million and foreign
in his report. exchange outgoings were ` 212,910 million as against
V. Social Responsibility and Sustainability `404,862 million of foreign exchange earnings and
` 208,181 million of foreign exchange outgoings for
Corporate Social Responsibility the financial year 2015-16.
Your Company is at the forefront of Corporate Social Extract of Annual Return
Responsibility (CSR) and sustainability initiatives and
practices. Your Company believes in making lasting Pursuant to section 92(3) and section 134(3)(a),
impact towards creating a just, equitable, humane extract of the Annual Return as on March 31, 2017 in
and sustainable society. Your Company has been form MGT-9 is enclosed as Annexure VI to this report.
involved with social initiatives for more than decade Material Changes and Commitments Affecting the
and a half and engages in various activities in the field Financial Position of the Company
of education, primary healthcare and communities,
ecology and environment, etc. Your Company has There have been no material changes and
won several awards and accolades for its CSR and commitments, affecting the financial position of the
sustainability efforts. Company which occurred during between the end of
the financial year to which the financial statements
As per the provisions of the Companies Act, 2013, relate and the date of this report.
companies having net worth of ` 500 crore or more,
or turnover of ` 1,000 crore or more or net profit of `5 Details of Significant and Material Orders Passed by
crore or more during any financial year are required the regulators/Courts/Tribunals Impacting the Going
to constitute a Corporate Social Responsibility Concern Status and the Companys Operations in
(CSR) committee of the board comprising three or Future
more directors, at least one of whom should be an
independent director and such company shall spend There are no significant material orders passed
at least 2% of the average net profits of the companys by the Regulators/Courts which would impact the
three immediately preceding financial years towards going concern status of the Company and its future
CSR activities. Accordingly, your Company spent operations.
` 1,863 million towards CSR activities during the Information Required Under Sexual Harassment
financial year 2016-17. The contents of the CSR policy of Women at Work place (Prevention, Prohibition &
and CSR Report for the year 2016-17 is attached Redressal) Act, 2013
as Annexure V to this report. Contents of the CSR
policy is also available on the Companys website Your Company has a policy and framework for
at http://www.wipro.com/investors/corporate- employees to report sexual harassment cases
governance/policies-and-guidelines/. The terms of at workplace and the process ensures complete
reference of CSR committee, framed in accordance anonymity and confidentiality of information.
with Section 135 of the Companies Act, 2013,
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75
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Adequate workshops and awareness programmes Company. I am sure you will join our Directors in
against sexual harassment are conducted across conveying our sincere appreciation to all employees
the organization. A total of 116 complaints of sexual of the Company and its subsidiaries and associates
harassment were raised in the calendar year 2016, for their hard work and commitment. Their dedication
of which 102 cases were disposed and appropriate and competence has ensured that the Company
actions were taken in all cases within the statutory continues to be a significant and leading player in
timelines. the IT Services industry.
Acknowledgements and Appreciation For and on behalf of the Board of Directors,
There were no contracts or arrangements or transactions entered into during the year ended March 31, 2017, which were not at arms length basis.
Details of material contracts or arrangement or transactions at arms length basis
The details of material contracts or arrangement or transactions at arms length basis for the year ended March 31, 2017 are as follows:
Name of Related Party Nature of Relationship Duration of Contract Salient terms Amount (` Mn)
Sales of Goods and services
Wipro do Brasil Technologia Ltda Subsidiary 01-04-05 - Ongoing As per Transfer Pricing guidelines 58
Letters
Wipro Technologies GmbH Subsidiary 01-03-11- Ongoing As per Transfer Pricing guidelines 636
Wipro LLC Subsidiary 01-04-05 - Ongoing As per Transfer Pricing guidelines 22,215
Wipro Portugal S.A. Subsidiary 01-04-07 - Ongoing As per Transfer Pricing guidelines 50
Wipro Solutions Canada Limited Subsidiary 16-08-14 - Ongoing As per Transfer Pricing guidelines 1,730
Wipro Technologies S.A DE C. V Subsidiary 01-01-12 - Ongoing As per Transfer Pricing guidelines 569
Wipro Poland Sp. zo.o Subsidiary 01-04-10 - Ongoing As per Transfer Pricing guidelines 30
Wipro Shanghai Limited Subsidiary 27-04-04 - Ongoing As per Transfer Pricing guidelines 34
Wipro Outsourcing Services (Ireland) Limited Subsidiary 12-11-12 - Ongoing As per Transfer Pricing guidelines 25
Board
Wipro (Thailand) Co. Limited Subsidiary 01-11-10- Ongoing As per Transfer Pricing guidelines 32
Appirio Inc. Subsidiary 01-01-17- Ongoing As per Transfer Pricing guidelines 3
Wipro Arabia Co. Limited Subsidiary 23-12-06 - Ongoing As per Transfer Pricing guidelines 231
Wipro Technologies SA Subsidiary 01-04-09 - Ongoing As per Transfer Pricing guidelines 41
Wipro Technologies Austria Gmbh Subsidiary 01-04-10 - Ongoing As per Transfer Pricing guidelines 145
Wipro Technology Chile SpA Subsidiary 01-01-16 - Ongoing As per Transfer Pricing guidelines 59
PT WT Indonesia Subsidiary 01-11-12 - Ongoing As per Transfer Pricing guidelines 169
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Wipro Technologies South Africa (Proprietory) Limited Subsidiary 01-04-12 - Ongoing As per Transfer Pricing guidelines 2,813
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Wipro Information Technology Austria Gmbh Subsidiary 01-09-14 - Ongoing As per Transfer Pricing guidelines 718
Wipro Data Centre and Cloud Services, Inc. Subsidiary 01-04-16 - Ongoing As per Transfer Pricing guidelines 1,475
Wipro Airport IT Services Limited Subsidiary 30-12-09 - Ongoing As per Transfer Pricing guidelines 368
Wipro Gallagher Solutions Inc Subsidiary 01-04-16- Ongoing As per Transfer Pricing guidelines 917
Wipro Information Technology Netherlands BV. Subsidiary 01-06-08- Ongoing As per Transfer Pricing guidelines 690
Wipro Doha LLC Subsidiary 01-04-14 - Ongoing As per Transfer Pricing guidelines 493
Opus Capital Markets Consultants LLC Subsidiary 01-04-16 - Ongoing As per Transfer Pricing guidelines 434
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Wipro IT Services Poland Sp zo.o. Subsidiary 01-05-14 - Ongoing As per Transfer Pricing guidelines 370
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Wipro Retail UK Limited Subsidiary 01-04-13- Ongoing As per Transfer Pricing guidelines 212
Healthplan Services Inc Subsidiary 01-06-16 - Ongoing As per Transfer Pricing guidelines 196
Wipro UK Limited Subsidiary 01-04-10 - Ongoing As per Transfer Pricing guidelines 114
Wipro Bahrain Limited WLL Subsidiary 01-01-15 - Ongoing As per Transfer Pricing guidelines 82
Wipro Technologies Peru S.A.C Subsidiary 01-10-16 - Ongoing As per Transfer Pricing guidelines 55
Wipro Holdings UK Limited Subsidiary 01-04-10 - Ongoing As per Transfer Pricing guidelines 1,003
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Financials
Name of Related Party Nature of Relationship Duration of Contract Salient terms Amount (` Mn)
Defining new
Wipro Technologies Nigeria Limited Subsidiary 01-04-14 - Ongoing As per Transfer Pricing guidelines 31
Wipro Technologies SDN BHD Subsidiary 01-04-13- Ongoing As per Transfer Pricing guidelines 24
Wipro Australia Pty Limited Subsidiary 01-04-07 - Ongoing As per Transfer Pricing guidelines 11
Wipro Technologies Limited, Russia Subsidiary 01-05-08 - Ongoing As per Transfer Pricing guidelines 9
Wipro Promax Analytics Solutions LLC Subsidiary 01-04-16 - Ongoing As per Transfer Pricing guidelines 3
Wipro Networks Pte Limited Subsidiary 01-04-14 - Ongoing As per Transfer Pricing guidelines 2,205
New Logic Technologies SARL Subsidiary 01-04-11 - Ongoing As per Transfer Pricing guidelines (1)
Wipro Information Technology Kazakhstan LLP Subsidiary 15-05-14 - Ongoing As per Transfer Pricing guidelines 60
Highlights
Wipro Enterprises Private Limited Entity controlled by promoters 01-04-14 - Ongoing As per RPT Policy guidelines 8.14
Asian Paints Limited Common Directors Ongoing As per RPT Policy guidelines 10.44
Blue Star Limited Common Directors Ongoing As per RPT Policy guidelines 3.14
ICICI Bank Limited Common Directors Ongoing As per RPT Policy guidelines 37.40
Infinity Retail Pvt. Ltd. Common Directors Ongoing As per RPT Policy guidelines 0.17
Titan Company Ltd Common Directors Ongoing As per RPT Policy guidelines 0.94
Wipro GE Healthcare Private Limited Joint venture between Wipro Ongoing As per RPT Policy guidelines 214.07
Enterprises Private Limited and
Letters
General Electric
Arcelor Mittal Common Directors Ongoing As per RPT Policy guidelines 168.48
LNM Institute of Information Technology Common Directors Ongoing As per RPT Policy guidelines 0.39
The Malayala Manorama Co. Ltd Common Directors Ongoing As per RPT Policy guidelines 0.27
Atria Convergence Technologies Pvt Ltd Common Directors Ongoing As per RPT Policy guidelines (0.01)
Dr. Reddys Laboratories Ltd Common Directors Ongoing As per RPT Policy guidelines 22.52
Mahindra World City Developers Ltd Common Directors Ongoing As per RPT Policy guidelines 0.19
United Spirits Limited Common Directors Ongoing As per RPT Policy guidelines 0.47
Board
Purchase of Services
Designit Denmark A/S Subsidiary 01-03-16 - Ongoing As per Transfer Pricing guidelines 382
Board of Directors
Wipro Travel Services Limited Subsidiary 01-02-03 - Ongoing As per Transfer Pricing guidelines 59
Wipro do Brasil Technologia Ltda Subsidiary 01-04-05 - Ongoing As per Transfer Pricing guidelines 1,707
Wipro Technologies Gmbh Subsidiary 01-03-11 - Ongoing As per Transfer Pricing guidelines 1,624
Wipro BPO Philippines Ltd. Inc Subsidiary 31-03-11 - Ongoing As per Transfer Pricing guidelines 1,581
Wipro LLC Subsidiary 01-04-05 - Ongoing As per Transfer Pricing guidelines 2,247
Wipro Portugal S.A. Subsidiary 01-04-07 - Ongoing As per Transfer Pricing guidelines 767
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Wipro Solutions Canada Limited Subsidiary 16-08-14 - Ongoing As per Transfer Pricing guidelines 47
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Wipro Technologies S.A DE C. V Subsidiary 01-01-12 - Ongoing As per Transfer Pricing guidelines 543
Wipro Poland Sp. zo.o. Subsidiary 01-04-10 - Ongoing As per Transfer Pricing guidelines 409
Infocrossing Inc Subsidiary 01-04-08 - Ongoing As per Transfer Pricing guidelines 48
Wipro Chengdu Limited Subsidiary 01-04-09 - Ongoing As per Transfer Pricing guidelines 253
Wipro Shanghai Limited Subsidiary 27-04-04 - Ongoing As per Transfer Pricing guidelines 251
Wipro Outsourcing Services (Ireland) Limited Subsidiary 12-11-12 - Ongoing As per Transfer Pricing guidelines 225
Wipro IT Services Poland Sp. Zo.o. Subsidiary 01-05-14 - Ongoing As per Transfer Pricing guidelines 941
Wipro (Dalian) Limited Subsidiary 30-12-15 - Ongoing As per Transfer Pricing guidelines 149
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Cellent Gmbh Subsidiary 01-04-16 - Ongoing As per Transfer Pricing guidelines 125
index page
Wipro Technologies Australia Pty Ltd Subsidiary 01-08-12 - Ongoing As per Transfer Pricing guidelines 106
Wipro (Thailand) Co Limited Subsidiary 01-11-10- Ongoing As per Transfer Pricing guidelines 70
Appirio Inc. Subsidiary 01-01-17- Ongoing As per Transfer Pricing guidelines 48
Wipro Arabia Co. Limited Subsidiary 23-12-06 - Ongoing As per Transfer Pricing guidelines 4
Wipro Technologies SA Subsidiary 01-04-09 - Ongoing As per Transfer Pricing guidelines 39
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Financials
Name of Related Party Nature of Relationship Duration of Contract Salient terms Amount (` Mn)
Defining new
Designit Munchen GmbH Subsidiary 31-03-16 - Ongoing As per Transfer Pricing guidelines 36
Wipro Technologies Austria Gmbh Subsidiary 01-04-10 - Ongoing As per Transfer Pricing guidelines 32
Wipro Technology Chile Spa Subsidiary 01-01-16 - Ongoing As per Transfer Pricing guidelines 30
PT WT Indonesia Subsidiary 01-11-12 - Ongoing As per Transfer Pricing guidelines 26
Designit Tokyo Ltd. Subsidiary 01-04-16 - Ongoing As per Transfer Pricing guidelines 16
Wipro Technologies South Africa (Proprietory) Limited Subsidiary 01-04-12 - Ongoing As per Transfer Pricing guidelines 1
Denextep Spain Digital, S.L Subsidiary 01-04-16 - Ongoing As per Transfer Pricing guidelines 10
Wipro Information Technology Austria Gmbh Subsidiary 01-09-14 - Ongoing As per Transfer Pricing guidelines 6
Highlights
Wipro Networks Pte Limited Subsidiary 01-04-14 - Ongoing As per Transfer Pricing guidelines 343
Wipro Information Technology Kazakhstan LLP Subsidiary 15-05-14 - Ongoing As per Transfer Pricing guidelines (9)
Azim Premji Foundation Entity controlled by directors Ongoing As per RPT Policy guidelines 2.53
Asian Paints Limited Common Directors Ongoing As per RPT Policy guidelines 14
Blue Star Limited Common Directors Ongoing As per RPT Policy guidelines 10
ICICI Bank Limited Common Directors Ongoing As per RPT Policy guidelines 33
The Indian Hotels Company Ltd. Common Directors Ongoing As per RPT Policy guidelines 1
Infinity Retail Pvt. Ltd. Common Directors Ongoing As per RPT Policy guidelines 1
Board
Piramal Enterprises Ltd. Common Directors Ongoing As per RPT Policy guidelines 1
Board of Directors
Titan Company Ltd. Common Directors Ongoing As per RPT Policy guidelines 1
Wipro GE Healthcare Private Limited Joint venture between Wipro Ongoing As per RPT Policy guidelines 28
Enterprises Private Limited and
General Electric
Tata Global Beverages Ltd Common Directors Ongoing As per RPT Policy guidelines 3
Wipro Enterprises Private Limited Entity controlled by directors Ongoing As per RPT Policy guidelines 4
Cipla Limited Common Directors Ongoing As per RPT Policy guidelines 4
MD & A
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Apollo Hospitals Enterprise Ltd Common Directors Ongoing As per RPT Policy guidelines 1
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Atria Convergence Technologies Pvt Ltd Common Directors Ongoing As per RPT Policy guidelines 2
LNM Institute of Information Technology Common Directors Ongoing As per RPT Policy guidelines 0.33
Mahindra World City Developers Ltd Common Directors Ongoing As per RPT Policy guidelines 0.10
The Malayala Manorama Co. Ltd Common Directors Ongoing As per RPT Policy guidelines (0.01)
Dr. Reddys Laboratories Ltd Common Directors Ongoing As per RPT Policy guidelines 6
Indian School Of Business Common Directors Ongoing As per RPT Policy guidelines 2
Anand Bazar Patrika Pvt. Ltd. Common Directors Ongoing As per RPT Policy guidelines 1
Roots Corporation Ltd. Common Directors Ongoing As per RPT Policy guidelines 0.03
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Commission Paid
index page
Wipro Technologies GmbH Subsidiary 01-03-11 - Ongoing As per Transfer Pricing guidelines 443
Wipro Japan KK Subsidiary 26-03-2001 As per Transfer Pricing guidelines 439
Wipro LLC Subsidiary 01-04-05 - Ongoing As per Transfer Pricing guidelines 0.32
Rent Paid
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Financials
Name of Related Party Nature of Relationship Duration of Contract Salient terms Amount (` Mn)
Defining new
Wipro Solutions Canada Limited Subsidiary 16-08-14 - Ongoing As per Transfer Pricing guidelines 43
Infocrossing Inc Subsidiary 01-04-08 - Ongoing As per Transfer Pricing guidelines 32
Wipro Arabia Co. Limited Subsidiary 23-12-06 - Ongoing As per Transfer Pricing guidelines 18
Wipro Technologies Australia Pty Ltd Subsidiary 01-08-12 - Ongoing As per Transfer Pricing guidelines 6
Wipro Technologies South Africa (Proprietory) Limited Subsidiary 01-04-12 - Ongoing As per Transfer Pricing guidelines 5
Wipro Data Centre and Cloud Services, Inc. Subsidiary 01-04-16 - Ongoing As per Transfer Pricing guidelines 5
Wipro Airport IT Services Limited Subsidiary 01-01-10 - Ongoing As per Transfer Pricing guidelines 2
Wipro Technologies SRL Subsidiary 01-01-10 - Ongoing As per Transfer Pricing guidelines 1
Letters
Wipro IT Services Poland SP zo.o. Subsidiary 01-05-14 - Ongoing As per Transfer Pricing guidelines 0.46
Wipro Holdings UK Limited Subsidiary 01-04-10 - Ongoing As per Transfer Pricing guidelines 0.37
Wipro Networks Pte Limited Subsidiary 01-04-14 - Ongoing As per Transfer Pricing guidelines 1
Rental Income
Designit Denmark A/S Subsidiary 01-03-16 - Ongoing As per Agreement 28
Wipro Travel Services Limited Subsidiary 21-12-15 - Ongoing As per Agreement 3
Wipro Gallaghar Solutions Inc. Subsidiary 01-01-16 - Ongoing As per Agreement 2
Wipro Airport IT Services Limited Subsidiary 01-07-16 - Ongoing As per Agreement 0.04
Board
Wipro Enterprises Private Limited Entity controlled by directors 01-04-14 - Ongoing As per Agreement 38
Board of Directors
Azim Premji Foundation Entity controlled by directors Ongoing As per Agreement 0.41
Management Service fees
Azim Premji Foundation Entity controlled by directors Ongoing Management Service fees 2
Wipro Enterprises Private Limited Entity controlled by directors 01-04-14 - Ongoing Management Service fees 65
Restricted Stock Unit compensation cost allocation
Wipro Enterprises Private Limited Entity controlled by directors 01-04-14 - Ongoing As per Allocation 46
Wipro Limited Subsidiaries Subsidiary Ongoing As per Allocation 55
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Other Costs
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Wipro Enterprises Private Limited Entity controlled by directors 01-04-14 - Ongoing On Actual Cost Basis 90
Azim Premji Foundation Entity controlled by directors Ongoing On Actual Cost Basis 4
Asset purchased
Wipro Enterprises Private Limited Entity controlled by directors 01-04-14 - Ongoing As per RPT Policy guidelines 106
Interest Income
Wipro Airport IT Services Limited Subsidiary 30-09-14 to 30-09-16 As per Agreement 2
CG Report
Financials
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80
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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.
Remuneration paid to Whole-time Directors
RSU - Restricted Stock Units, MRE - Median remuneration of Employees, WTD - Whole Time Director
1. The remuneration of Executive Directors is computed on an accrual basis. It also includes the accelerated
amortization of Restricted Stock Units (RSUs) granted to them, which vest over a period of time.
2. Rounded off to two decimals
* Mr. T K Kurien retired from the Board of the Company as the Executive Vice Chairman on January 31, 2017. The
remuneration for fiscal 2017 is from April 1, 2016 to January 31, 2017.
** Figures mentioned are rupee equivalent - as amount paid in USD
Remuneration paid to Independent Directors
Name of Directors Remuneration in Remuneration in No. of stock options/ % increase/
fiscal 2017 fiscal 2016 RSUs granted in Decrease of
(` in Crore) (` in Crore) fiscal year remuneration in
2017 as compared
to 2016
Dr. Ashok S Ganguly 0.55 0.43 - 27.91
N Vaghul 0.66 0.54 - 22.22
M K Sharma 0.54 0.42 - 28.57
William A Owens 1 2.03 2.02 - 0.50
Ireena Vittal 0.53 0.42 - 26.19
Dr. Jagdish N Sheth 1* 0.47 1.56 - -
Vyomesh Joshi 1* 0.48 1.56 - -
Dr. Patrick J Ennis 1** 1.60 - - -
Patrick A Dupuis 1** 1.60 - - -
1
Figures mentioned against these names are rupee equivalent - as amount paid in USD
*
r. Jagdish Sheth retired from the Board effective July 18, 2016 and Mr. Vyomesh Joshi resigned from the Board
D
effective July 19, 2016. The remuneration for fiscal 2017 is for the period from April 1, 2016 upto the respective date
of retirement/resignation as mentioned above.
**
Patrick Ennis and Patrick Dupuis were appointed as Independent Directors w.e.f. April 1, 2016.
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Name of KMP Title Remuneration Remuneration No. of Stock % increase/ Excl. WTD Incl. WTD
in fiscal 2017 in fiscal 2016 options/RSUs Decrease of
(INR in Crore) (INR in Crore) granted in remuneration Ratio of Ratio of
fiscal year in 2017 as remuneration remuneration
compared to to MRE to MRE and
2016 WTD
* Mr. Sanaulla Khan was appointed as Company Secretary effective June 3, 2015
The Median Remuneration of employees (MRE) excluding Whole-time Directors was ` 5,23,000 (USD 8,100) and `5,25,000
(USD 7,700) in fiscal 2017 and fiscal 2016 respectively. The decrease in MRE excluding the Whole-time Directors in
fiscal 2017 as compared to fiscal 2016 is 0.4% (in `).
The Median Remuneration of employees (MRE) including whole time directors was ` 5,23,000 (USD 8,100) and `5,25,000
(USD 7,700) in fiscal 2017 and fiscal 2016 respectively. The decrease in MRE including the Whole-time Directors in
fiscal 2017 as compared to fiscal 2016 is 0.4% (in `).
The number of permanent employees on the rolls of the Company as of March 31, 2017 and March 31, 2016 was 1,37,688
and 123,577 respectively.
The aggregate remuneration of employees excluding WTD grew by 7.89% over the previous fiscal. The aggregate increase
in salary for WTDs and other KMPs was 9% in fiscal 2017 over fiscal 2016.
The Company affirms that the remuneration is paid as per the remuneration policy of the Company.
Annexure III
Defining new
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
Sl. Name of the Date of Joining Gross Educational Age Experience Last Employment Designation
No. Employee (dd-mm-yyyy) Remuneration Qualification (yrs)
(`)
1 Abidali Z Neemuchwala*# 01-Apr-2015 135,575,058 BE, Electronics and 49 25 Tata Consultancy Chief Executive Officer and
Highlights
4 Bhanumurthy B M 3-Sep-1992 40,979,245 B Tech, PGDM 53 30 CMC LTD President and Chief Operating
Officer
5 Dr. Anurag Srivastava 15-Dec-2000 38,584,413 B Tech, M Tech, PHD 50 25 Evizeon-Apar Senior Vice President & Business
Infotech Head - Business
6 Prasanna Gamma Kali 2-Dec-1999 30,652,262 B Tech, PGD 57 34 Microland Ltd President
7 Saurabh Govil 11-May-2009 28,169,901 B.Sc., PGDM -PM & IR 49 28 GE India President & CHRO
8 Abhijit Bhaduri 1-Oct-2009 27,108,542 MBA 56 32 Microsoft Corp Chief Learning Officer
Board
9 Achuthan Nair 29-Apr-1991 24,355,772 BE,PGDBM 51 29 Hindustan COO India & Middle East
Board of Directors
Petroleum
10 Soumitro Ghosh 26-Nov-1988 26,667,475 B Tech, MBA 57 33 Blue Star Ltd President - India, Middle East &
APAC Group
Notes:
1. Remuneration comprises salary, allowances, commission, performance based payments, perquisite and companys contribution to PF and super-annuation as
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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)
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disclosed above is for the period from April 1, 2016 to January 31, 2017.
CG Report
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* The remuneration of Executive Directors and Chief Financial Officer is computed on an accrual basis. It also includes the accelerated amortization of Restricted
Stock Units (RSUs) granted to them, which vest over a period of time.
#
Figures mentioned in ` are equivalent to amounts paid in US$
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Financials
B) Employees drawing salary of ` 102 lakhs or above per annum and posted in India
Defining new
Sl. Name of the Date of Gross Educational Age Experience Last Employment Designation
No. Employee Joining Remuneration Qualification (yrs)
(dd-mm-yyyy) (`)
1. Abidali Z Neemuchwala*# 01-Apr-2015 135,575,058 BE, Electronics and 49 25 Tata Consultancy Chief Executive Officer and
Communication, Services Executive Director
Masters in Industrial
Management
2. Anil K Jain 10-Apr-1989 15,575,895 BE, MBA 53 27 ORG Systems Sr. Vice President & Business
Highlights
Head-Global Communication
3. Anil Raibagi 16-Oct-2002 13,152,048 B. Com, MBA 47 25 IBM Senior Vice President and Head -
M&A
4. Anuj Bhalla 15-May-1996 12,341,109 BE, MBA 46 21 First Employment Senior Vice President & Global
Delivery Head, GIS
5. Anurag Seth 3-May-1990 11,438,087 BE, PGDBM - Information 50 27 First Employment Vice President & SDH -AIM
Management
Letters
Head
11. Hari Kishan Burle 15-Mar-1994 10,925,938 B.Tech, M.Tech 45 23 First Employment Vice President
Board of Directors
12. Hariprasad Hegde 22-Apr-2002 11,588,864 B Tech,B.Sc ,PG Diploma 55 33 Satyam Computer Senior Vice President
Services Limited
13. Harsh Bhatia 7-Nov-2002 11,478,006 B.Sc 51 29 Daksh Vice President - Operations
14. Hoshedar Contractor 12-Aug-2002 15,680,146 B Com 56 32 Klm/Nw Airlines Vice President - Operations
15. Inderpreet Sawhney 28-Oct-2011 20,000,640 B.A.(Hons), LL.B, LL.M 52 25 The Chugh Firm Senior Vice President & General
Counsel
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16. Jatin Pravinchandra 1-Jul-2002 45,456,040 BE, CA, PGDBA and CMA, 42 18 GE India Senior Vice President and Chief
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21. Natarajan Coimbatore 22-Jan-2015 12,972,402 BE 50 27 IBM India Pvt Ltd Vice President
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Srinivasan
22. Prasanna Gamma Kali 2-Dec-1999 30,652,262 B Tech, PGD 57 34 Microland Ltd President
23. Priti Kataria 1-Jun-1998 10,912,995 MBA, Tata Institute Of 44 19 First Employment Vice President & Global HR Head-
Social Sciences (TISS, Mfg & Tech
Mumbai)
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Financials
Sl. Name of the Date of Gross Educational Age Experience Last Employment Designation
Defining new
27. Ramesh Nagarajan 25-Jan-1991 16,761,589 ME 52 28 First Employment Senior Vice President & Head
28. Rishad Premji* 20-Jul-2007 16,861,917 B.A., MBA 40 18 Bain & Co Chief Strategy Officer and Member
of the Board
29. Rohit Adlakha 30-May-1995 13,319,448 BE 43 21 First Employment Vice President & Global Head,
Practice and Presale
30. Sanaulla Khan 12-May-2015 11,834,941 FCS, M Com 47 23 Icici Prudential Life Vice President & Company
Mohammed Insurance Co Ltd Secretary
Letters
31. Sanjesh K Gupta 4-Dec-1984 13,933,835 Diploma, AMIE (Elec. and 53 32 Televista Vice - President
Communication) Electronics
Computer Division
32. Sanjiv K R 16-Nov-1988 21,193,633 MMS 53 29 DCM Data Products Chief Technology Officer
33. Santhosh G Nair 30-Apr-1990 12,896,219 B Tech, PGDM 51 27 First Employment Vice President & Global Business
Head
34. Saurabh Govil 11-May-2009 28,169,901 B.Sc., PGDM -PM & IR 49 28 GE India President & CHRO
35. Sheetal Sharad Mehta 16-Sep-1994 12,943,520 BE 44 23 First Employment Vice President
Board
36. Siby Abraham 16-Feb-1987 10,312,103 B Tech, M Tech 53 30 First Employment Vice President - CTO
Board of Directors
37. Soumitro Ghosh 26-Nov-1988 26,667,475 B Tech, MBA 57 33 Blue Star Ltd President - India, ME & APAC
38. Sreenath A 29-Nov-2002 10,966,183 BE 53 29 Kshema Senior Vice President & India BU
Venkappiah Technologies Head
39. Srinivas Pallia 1-Feb-1992 24,113,607 B Tech, M Tech 50 25 First Employment President - Consumer
40. Srinivasan G 14-Apr-1999 11,084,522 BE 47 26 Indchem Vice President
Electronics
41. Subrahmanyam P 8-Nov-1983 16,451,021 B.Sc, MSc,M PHIL 56 32 First Employment Chief Global Delivery Enablement
MD & A
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42. Subramanian L 3-Aug-1992 10,281,314 B.Sc, ME 49 24 First Employment Senior Vice President
Boards report
43. Sunita Cherian 4-Nov-1996 12,566,709 B Tech, PGDBA 43 20 First Employment Senior Vice President - Human
Resources
44. Suresh B 22-May-1989 13,991,252 BE, ME 53 30 AF Ferguson & Co Vice President - Application
Support & Maintenance
45. Vasudevan A 31-Mar-1986 12,756,382 BE, M Tech 55 31 First Employment Vice President
46. Vijayasimha 28-Feb-2014 10,601,380 BE 43 21 Infosys Limited Senior Vice President
Alilughatta
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CG Report
47. Vinod Kumar T V 13-Jan-1988 13,749,582 B.Sc, MSc 56 31 Usha Vice President & SDH - Mfg & Hi
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Microprocessors Tech
48. Vishwas Santurkar 6-Nov-1991 14,805,423 BE (Mechnacial) 54 32 Unicad Vice President & Head - Talent
Technologies Transformation
49. Viswanathan 6-Feb-2014 12,038,855 M Tech 50 30 Vodafone India Ltd Vice President
Ramaswamy
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Financials
Employed for Part of the Year with an average salary of ` 8.5 lakhs or above per month and posted in India
Defining new
Sl Name of the Date of Gross Educational Qualification Age Experience Previous Designation
No. Employee Joining Remuneration (yrs) Employment
(Rupee Symbol)
1 Abhijit Bhaduri 1-Oct-2009 27,108,542 MBA 56 32 Microsoft Corp Chief Learning Officer
2 Achuthan Nair 29-Apr-1991 24,355,772 BE,PGDBM 51 29 Hindustan COO India & Middle East
Petroleum
3 Aneesh Garg 11-Nov-2002 5,067,829 CA 44 15 Timer Internet Vice President
Highlights
Limited
4 Anil Kumar Khera 11-Mar-2010 1,144,628 BE 59 37 ATOS ORIGIN General Manager & Head
Delivery- Large Programs
5 Ashish Kumar 27-Feb-1995 11,048,811 B Tech 49 28 TISCO Vice President and Global Head
Srivastava Industry
6 Ashutosh Chadha 4-May-2015 5,038,912 MBA 51 30 INTEL Vice President
7 Bhavani Padmanabhan 9-May-2016 9,684,066 MBL 48 25 SABMiller India Deputy General Counsel
Letters
Limited
8 Deepak Jain 21-Mar-1986 11,908,831 BE 52 30 Raba Contel (P) Ltd Sr. Vice President and Head for
Internal Audit
9 Dr. Anurag Srivastava 15-Dec-2000 38,584,413 B Tech, M Tech, PHD 50 25 Evizeon-Apar Senior Vice President &
Infotech Business Head - Business
10 Jyotirmoy Bhattacharya 3-Nov-2003 2,631,289 B Com, PGD 59 34 Verizon General Manager
11 Krishnakumar 16-Aug-2004 2,241,981 B Sc, M Sc, ICWA 45 22 Providian Finl Account Delivery Head
Nandagopal
Board
1. Remuneration comprises salary, allowances, commission, performance based payments, perquisite and companys contribution to PF and super-annuation as
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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.
2. Rishad A Premji, who is in the employment of the Company is a relative of Azim H Premji, Director of the Company.
3. The nature of employment is contractual in all the above cases.
4. None of the employees except the Chairman and Managing Director 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
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working in a country outside India, not being Directors or their relatives, drawing salary more than the prescribed limits have not been included in the above
CG Report
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statement.
6. Mr. T K Kurien, who was Executive Vice Chairman of the Company retired from the services of the Company and the Board effective January 31, 2017. Compensation
disclosed above is for the period from April 1, 2016 to January 31, 2017.
* The remuneration of Executive Directors and Chief Financial Officer is computed on an accrual basis. It also includes the accelerated amortization of Restricted
Stock Units (RSUs) granted to them, which vest over a period of time.
#
Figures mentioned in ` are equivalent to amounts paid in US$
85
Financials
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Annexure IV
Form No. MR-3
SECRETARIAL AUDIT REPORT
[Pursuant to Sub Section (1) 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, 2017 a. The Securities and Exchange Board of India
(Substantial Acquisition of Shares and
To
Takeovers) Regulations, 2011;
The Members
Wipro Limited, Bengaluru b. The Securities and Exchange Board of India
(Prohibition of Insider Trading) Regulations, 2015
We have conducted the secretarial audit of the compliance
of applicable statutory provisions and the adherence to c. The Securities and Exchange Board of India
good corporate practices by Wipro Limited (hereinafter (Issue of Capital and Disclosure Requirements)
called the Company). Secretarial Audit was conducted Regulations, 2009 (Not Applicable to the
in a manner that provided us a reasonable basis for Company during the Audit Period);
evaluating the corporate conducts/statutory compliances
and expressing our opinion thereon. d. The Securities and Exchange Board of India
(Share Based Employee Benefits) Regulations,
Based on our verification of the Companys books, 2014
papers, minute books, forms and returns filed and
other records maintained by the Company and also the e. The Securities and Exchange Board of India (Issue
information provided by the Company, its officers, agents and Listing of Debt Securities) Regulations, 2008
and authorized representatives during the conduct of (Not Applicable to the Company during the Audit
secretarial audit, we hereby report that in our opinion, Period);
the Company has, during the audit period covering the f. The Securities and Exchange Board of India
financial year ended on March 31, 2017 (the audit period) (Registrars to an Issue and Share Transfer
complied with the statutory provisions listed hereunder Agents) Regulations, 1993 regarding the
and also that the Company has proper Board-processes Companies Act and dealing with client;
and compliance-mechanism in place to the extent, in the
manner and subject to the reporting made hereinafter: g. The Securities and Exchange Board of India
(Delisting of Equity Shares) Regulations, 2009
We have examined the books, papers, minute books, forms (Not Applicable to the Company during the Audit
and returns filed and other records maintained by the Period); and
Company for the financial year ended on March 31, 2017
according to the provisions of: h. The Securities and Exchange Board of India
(Buyback of Securities) Regulations, 1998;
I. The Companies Act, 2013 (the Act) and the rules made
thereunder; i. Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements)
ii. The Securities Contracts (Regulation) Act, 1956 Regulations, 2015
(SCRA) and the rules made thereunder;
vi. Other laws applicable specifically to the Company
iii. The Depositories Act, 1996 and the Regulations and namely:
Bye-laws framed thereunder;
a. Information Technology Act, 2000 and the rules
iv. Foreign Exchange Management Act, 1999 and the made thereunder
rules and regulations made thereunder to the extent b. Special Economic Zones Act, 2005 and the rules
of Foreign Direct Investment and Overseas Direct made thereunder
Investment. There was no External Commercial
Borrowing by the Company during the period under c. Software Technology Parks of India rules and
review. regulations
We have also examined compliance with the applicable clarifications on the agenda items before the meeting and
clauses of the following: for meaningful participation at the meeting.
i. Secretarial Standards issued by The Institute of As per the minutes of the meetings duly recorded and
Company Secretaries of India on Meetings of the signed by the Chairman, the decisions of the Board of
Board of Directors and General Meeting. Directors were unanimous and no dissenting views have
been recorded.
ii. Listing Agreements entered into by the Company with
BSE Limited and National Stock Exchange of India We further report that based on the review of the
Limited compliance reports/certificates of the Company Secretary
which were taken on record by the Board of Directors,
We have not examined compliance by the Company with
there are adequate systems and processes in the
applicable financial laws, like direct and indirect tax laws,
Company commensurate with the size and operations
since the same have been subject to review by statutory
of the Company to monitor and ensure compliance with
financial audit and other designated professionals.
applicable laws, rules, regulations and guidelines.
During the period under review, the Company has complied
We further report that during the audit period, except
with the provisions of the Act, Rules, Regulations,
for buy back of 4,00,00,000 (Four Crore) Equity Shares of
Guidelines, etc. mentioned above.
face value of `2/- each at ` 625/- per share aggregating to
We further report that: `2500,00,00,000/- (Rupees Two Thousand Five Hundred
Crore), there was no event/action having a major bearing on
The Board of Directors of the Company is duly constituted
the Companys affairs in pursuance of the above referred
with proper balance of Executive Directors, Non-Executive
laws, rules, regulations, guidelines etc.,
Directors and Independent Directors. The changes in
the composition of the Board of Directors that took For V. SREEDHARAN & ASSOCIATES
place during the period under review were carried out in Company Secretaries
compliance with the provisions of the Act.
Adequate notice is given to all Directors to schedule the (V. Sreedharan)
Board Meetings, agenda and detailed notes on agenda Partner
were sent at least seven days in advance, and a system Bangalore FCS: 2347; CP No: 833
exists for seeking and obtaining further information and Date: April 15, 2017
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Annexure V
Corporate Social Responsibility Report for the year 2016-17
We present our report on Wipros social and environmental report a detailed summary of our sustainability initiatives
initiatives for the year 2016-17. The core foundation and as part of the Management Discussion and Analysis
strategic direction of our social initiatives has essentially section. Starting from last year, we have structured
remained the same since inception in 2001 even as we the MD&A on the principle of integrated reporting. The
have evolved in terms of scale and scope of our programs. principle is aligned with the guidelines of the International
Let us start by emphasizing the key strategic elements of Integrated Reporting Council (IIRC) that seeks to integrate
our social programs: financial and non-financial capitals as a driving principle
of business. Non-financial capitals include Human,
he values of Spirit of Wipro guide all our actions.
T Intellectual, Natural and Social capitals. Our integrated
We recently rearticulated our values as part of the reporting emphasizes this fundamental principle of
relaunch of our brand. Our rearticulated values continuity and connectedness between business and
remain the same in their essence though with a slight society. For a fuller understanding, you may also want to
shift in emphasis on a few elements. refer to our comprehensive annual sustainability reports
Three of our four values have a direct correlation with based on GRI principles. These and various other details
our social initiatives Respect for every individual, are available at the websites, www.wipro.com and www.
Being global and responsible and Unyielding integrity. wipro.org.
These are tenets which are cornerstones of any social A. Education
change for the better.
Our work in education covers a range of initiatives in
Even the fourth value Being passionate about clients school and higher education from systemic reforms
success can be interpreted in the social sector as the to sustainability education. Apart from India, we
principle of engaging with our partners in a manner have significant programs in the U.S.A. as well. The
that is based on mutual trust and that is empowering common vision that ties this together is our belief
for both sides. that education is a key enabler of change towards a
To conduct our business on sound ethical principles better society.
and widely accepted tenets of good corporate A.1 Systemic reforms in school education: Over
governance. This includes compliance in letter and the past 16 years, we have worked to contribute to
spirit with laws and regulations everywhere we systemic reform in school education in India, through
operate. Wipro Applying Thought in Schools (WATIS). The
To make our organization more sustainable as strategy for this has been to support the development
defined by the triple bottom-line framework. The and strengthening of good organizations working
primary areas of focus are to (i) reduce our ecological in this space. We have closely partnered with over
footprint (ii) foster a more diverse, empowered and 70 organizations in different areas of systemic
fair workplace (iii) enhance employees well being in reform. The impact of this wide network of education
terms of their health and safety as well cognitive and organizations has been inthe areas of curriculum, text
emotional development. books, teacher capacity, and school leadership. Over
the last 16 years, our work has spanned132 projects
To engage on systemic and long term issues of with a collective reach of nearly 20,000 schools
importance in our chosen domains of Education and across 17 states. During 2016-17, we accelerated
Ecology. our initiative of supporting new and young start-ups
in school education through a structured program of
To work with communities who are proximate to
seeding fellowships. 26 Fellows from 14 organizations
wherever we have significant operational presence.
working across a very interesting spectrum of
As a global organization, we think that it is important
educational ideas were chosen for support. Our
to try and make a difference to communities
hope is that such early stage support will eventually
everywhere, not only in India.
help build a bulwark of strong organizations across
The salient highlights of our initiatives for 2016-17 are the country which are deeply committed to change
articulated below. You will also find in this years annual in school education. The second element of our
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strategy is to support organizations working in other teachers are chosen for 2 to 3 year fellowships and
developmental areas like livelihoods or healthcare to our partners are the University of Massachusetts,
expand their focus of work to school education. Five Boston and Michigan State University. Mercy College
such organizations were identified for partnering in New York, Mont Clair State University, New Jersey
during the year. We expect to see accelerated and University of Northern Texas, Dallas are also
momentum in this element of our strategy in the next involved with the program. We have worked with more
2 to 3 years. As part of the advocacy of such issues, than 400 teachers till now.
the 16 th national forum was organized a unique
platform that brings together the best minds in This initiative is aligned with the U.S. federal
education in the country to deliberate and exchange governments priority on improving science and
thoughts and ideas on some of the most important math education in their school system. The program
issues in education-. runs across 30 school districts in 5 cities Boston,
Chicago, Dallas, New Jersey and New York. We are
A.2 Education for underprivileged children: Education satisfied with the outcomes of this program till now
is so critical that it is necessary to focus on multiple and will be actively considering expanding it to other
points of leverage. While systemic reforms will cities.
continue to be an important area for us, we also
have a large program that is designed for more direct Wipros commitment of about USD 10.8 million
impact on underprivileged children. Run through over a period of 6 years is one of the largest such
Wipro Cares, the employee-supported trust of Wipro, commitments made by a non-US company to the
the program reached out to nearly 70,000 children cause of improving science and math education out
across eight states. The number of projects in this there. While this expenditure is not allowed under the
area has doubled in the past couple of years. The CSR rules of the Companies Act 2013, we think that
projects address a gamut of critical issues faced by it is important to include this as part of our report
disadvantaged communities when it comes to school as it highlights our core underlying principle here
education starting from enrolment in schools to that corporations must engage with social issues
nutrition for children, counseling services for parents, wherever they have large operational presence in the
remedial education, just to name a few. These world, not just in India.
children are from some of the most vulnerable groups A.4 Sustainability Education: Over the last six
in our society urban slums, tribal communities, years, we have been trying to bring together two
street children. of our key concerns, Education and Sustainability,
In parallel, we continue to strengthen our program on through Wipro-earthian, a nation-wide program for
children with disability through 12 projects across schools and colleges. In the past year, the schools
six states that work closely with 2,500 children with program saw a significant expansion of coverage to
disability from socioeconomically underprivileged over 2,500 schools across 75 districts in 27 states
backgrounds. Education for such disadvantaged and 2 union territories. One major highlight of this
sections is never about just schooling. It is linked outreach was the deliberative focus on the North-
to a host of other enabling factors like availability East where we had participation from all states
of nutrition, community support, specially trained except Mizoram and Tripura. While our strategy
teachers, assistive technology, access to healthcare for schools is centered on wide outreach and
etc. Our approach tries to integrate these dimensions awareness building, our engagement with colleges
to the extent possible. Our work in this space covers is more selective and aligned with the particular
multiple categories of disability and focuses on early characteristics of different disciplines and institutes.
intervention and inclusive education. We continue our collaboration with IIM Bangalore for
encouraging doctoral level sustainability research
A.3 Science education in the U.S.A.: The Wipro and with Xavier University, Bhubaneswar for their
Science Education Fellowship (SEF) is a significant School of Sustainability. Like every year, students
initiative we started four years back in the U.S. with from leading institutes got an opportunity to intern
a focus on improving STEM (Science, Technology, with some of our sustainability partners working on
Engineering and Math) in schools that primarily serve areas as diverse as water, energy, forest-livelihoods
disadvantaged communities. Our work centers around and natural capital valuation. We also hosted a
helping teachers become better STEM educators and unique symposium in the western region that brought
change leaders for STEM in their school districts. The together leading institutes in Design, Architecture,
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Technology and Management (NID, CEPT, IITB, ICT quality primary health care services to underserved
and IIMA) in an effort to foster new thinking on inter- communities covering more than 40,500 people
disciplinary pedagogy that is so much at the heart of belonging to extremely disadvantaged communities.
sustainability education. Our work in Nagaland is in remote, inaccessible
villages where health care access has been weak
A.5 Technology Education: People with the right or non-existent till now. Similarly, the work that we
skills and competencies form the bedrock of IT support in Maharashtra is in the difficult to access
services organizations. The challenge for the Indian tribal district of Gadchiroli as well as in the urban
IT industry going forward would be to ensure that the slums of Mumbai. In both instances, the primary goals
skills required for the rapidly changing dynamic of the are to build the capacity of the local community in
industry are met. We have always owned this as our managing their health needs, to augment government
primary responsibility. In 1995, we started a program infrastructure and in training health workers to
for science graduates that would enable them to address the unique needs of the communities.
study for a post-graduate degree in engineering and
technology. Called the Wipro Academy of Software B.2 Disaster rehabilitation: Natural disasters like
Excellence (WASE) program, it helps Science earthquakes, floods and cyclonic storms are an
graduates to study for a Masters degree in Software unfortunate fact of life, especially in a climatically
Engineering (M.Tech). Run in partnership with the and geologically diverse country like India. Whenever
Birla Institute of Technology & Science (BITS), Pilani, these happen, the disadvantaged sections get
India, this unique program blends rigorous academic affected the most as the already fragile basis of their
exposure with practical professional learning at the livelihoods gets further disrupted. Starting with the
workplace. We run a similar program called WISTA Gujarat earthquake in 2001, we have responded to
in collaboration with Vellore Institute of Technology several natural calamities wherein Wipros employees
(VIT) for science graduates without a mathematics have also risen to the occasion and played a sterling
background. Since its inception in 1995, Wipro has role. By design, we focus on the more difficult
supported and enabled more than 28,000 students challenge of long term rehabilitation of the affected
to graduate from the WASE and WISTA programs communities.
with an MS degree in Software Engineering. During
2016-17, the total number of new entrants into the During 2016-17, Unnati the rehabilitation project
two programs was 3,274 while the aggregate strength that we had initiated in Uttarakhand in the aftermath
across four years was 13,636. of the floods there in 2013 has progressed to an
advanced stage. Our program seeks to strengthen
B. Working with communities everywhere local livelihoods of communities in 22 villages in
the Uttarkashi district through improved farming
A primary tenet of our CSR strategy is that we must practices in organic agriculture. The farmers
engage with communities proximate to wherever we cooperative that was set up the previous year is
have significant operational presence in the world. operational now and we are actively examining how
We choose to work with underprivileged communities to steer its activities in the direction of more value-
in particular. Our work is channeled through Wipro added products that will help enhance their incomes
Cares, a unique trust that is based on the operating in the years to come.
model of employee contributions matched by Wipro
Limited. Our work spans primary health-care, Chennai and adjoining coastal areas in Tamil Nadu
education, ecology and disaster rehabilitation. Of had seen unprecedented rains, flooding and damage
these, we have already spoken about our work on in December 2015. We had responded immediately
community education in an earlier section above. We then by providing relief in terms of dry rations, food
articulated our progress on the other dimensions. and other essentials to thousands of affected people
in Chennai, Tiruvallur, Kanchipuram and Cuddalore
B.1 Primary health care: Access to primary health districts. In addition, we started a rehabilitation
care is a key determinant of an individuals future project last year in partnership with the Law trust.
trajectory in life, including the ability to engage in The project will focus on strengthening the resilience
productive livelihoods and responsible citizenship, of the fishermen community in Cuddalore district
In India, nearly 600 million people do not have but with a deliberative emphasis on working with the
access to basic, affordable, good-quality health care. women of the community. The objective is to build
Wipro Cares works with partners who provide good the capacity of the women in engaging with a broader
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range of livelihoods than what they have been doing (a) continually improving the energy, water, waste
till now. Women are the bulwark of any community and and biodiversity footprint of our business operations
such efforts will enable the fishermen community to and (b) engaging on community-level actions and
respond to any future disaster in more effective ways. advocacy on these issues. We present below some
salient highlights of our work in 2016-17.
B.3 International Chapters: The First Book library
that we initiated the previous year in the U.S.A has C.1 The challenges of urban water: Water scarcity
taken of well. Based on the premise that access is perhaps the top most challenge facing large
to good books is a catalyst for good education, the parts of the world including in India. The crisis is as
program has made available nearly 100,000 books much agrarian as it is urban. For example, the city
to children from disadvantaged communities across of Bangalore which is dependent on the Cauvery
15 school locations.In this effort, Wipro employees in river 100 KM away as well as on ground water
the U.S.A have played a central role in volunteering stands at greatly enhanced risk of its aggregate
as well as in fund raising. Wipro employees have demand being unmet. Plummeting ground water
also been involved closely in the Million Women tables and severe pollution of its lakes present a
Network, an initiative designed to engage more complex challenge that requires responses which
women in STEM careers in the U.S.A. More than are a carefully crafted blend of technology, citizen
100 employees have committed time to mentoring involvement and policy governance. Over the past
women to choose careers in STEM. Our chapters in three years, we have been running the Participative
Philippines, UK and Ireland have also been very active Ground Water Programprogram that seeks to involve
in engaging with communities on a range of initiatives multiple stakeholders in systemically understanding
that include disaster rehabilitation, housing for the and addressing the water problem in the periphery
very poor, biodiversity conservation and schools for area of Sarjapur in Bangalore which is completely
underprivileged children. dependent on groundwater. A significant outcome
of the project is the development of a granular map
In South Africa, we have been active participants of the groundwater aquifer of an area of nearly 35 sq
in a number of programs aligned with the Broad km. This, in turn, has generated new insights on how
Based Black Economic Empowerment (BBBEE) Act residential communities can adopt more sustainable
that aims to distribute wealth across a spectrum of practices of water withdrawal and harvesting based
previously disadvantaged South African society. Our on which part of the aquifer they are resident on. This
work covers computer literacy for youth, skills and project is part of a larger initiative, the Karnataka
entrepreneurship development and working with State Water Network (KSWN), that works with
underprivileged schools. industry, government and civil society to catalyze
C. Ecology & Environment actions on water across Bangalore. KSWN has
completed four years and has seen strong traction
Managing economic development in a manner that in five different geographical clusters of Bangalore
does not compromise the ecological integrity of the
environment has posed one of the biggest challenges C.2 Urban Biodiversity: Our urban biodiversity
to humanity ever since the industrial revolution program addresses the twin goals of creating
started. It will be even more so in the coming biodiversity in our urban campuses while also using
decades of this century. It is no surprise therefore it as a platform for wider education and advocacy. Our
that 7 of the 17 U.N. Sustainable Development Goals projects in our Electronic City, Bangalore and Pune
directly reflect these concerns while the remaining campuses have been completed. After completing
10 goals have indirect intersects with ecology the first phase of the butterfly park in the E-City
and environment in some way or the other. The campus, the second phase of creating an aquatic
manifold problems of climate change, water scarcity, wetland zone is in an advanced stage of completion.
biodiversity loss and the pollution and depletion of The Pune campus has also seen a transformation over
our natural commons require all stakeholders to act. the last two years. While the number of native species
Responsible corporations can make a significant has trebled, the creation of specific ecological spaces
difference by aligning their resources, energy and within the campus for example, a herbal garden
commitment with these problems in a purposeful and a kitchen garden serves to illustrate the multi-
way. Wipros engagement with these issues goes back dimensional benefits of biodiversity. The importance
several years and is based on the dual approach of of biodiversity being what it is, we have made it a
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central plank of our sustainability education program, nearly 9,000 employees from more than 30 chapters
Wipro-earthian as well as with our own employees. in India and overseas collectively spent more than
20,000 hours in voluntary engagement on a wide
C.3 Urban Waste Management: Accelerated by
range of community and environmental initiatives.
growing urban densities and changing lifestyles, This represent a more than 50% increase over the
urban solid waste continues to be a tough challenge previous year. Involved and engaged employees add
for most of our cities. In this space, the work of great value to our programs. It also enhances their
the informal sector is often unrecognized. Over own sense of larger purpose and alignment with the
the last three years, our deliberative focus has Companys values. One of our prime goals for the next
been on providing access to social, nutritional and two years is going to be to further increase the scale
health security to the informal sector in solid waste and scope of employee engagement.
management in the city of Bangalore. In partnership
with HasiruDala, more than 2,700 such workers now We started this report with dwelling on the Why
of our social initiatives, our underlying vision and
have access to increased health and social benefits.
beliefs. We would like to conclude by emphasizing
The initiative also provided comprehensive skills
that the What and How are equally important. Thus,
upgradation training to 250 workers. In our internal
the What of choosing our domains, partners and
operations, we continue to maintain the highest
locations in a strategic, deliberative manner and the
standards of waste management: 100% of our
How of running our programs on the bedrock of good
inorganic waste is processed and recycled as per governance are equally critical. Good governance
approved methods while 80% of our organic waste is requires multiple elements to come together: (a)
recycled within our campuses itself getting converted Robust Board and management oversight through
to compost for plants or biogas for cooking. regular reviews and feedback, (b) Choosing the right
D. The power of engaged employees partners who are passionate about positive social
change and whose values are aligned with ours and (c)
Employees are integral to many of our social Transparent and comprehensive reporting of our CSR
programs. The Wipro Cares trust is built on a model programs in the public domain inviting constructive
of employee contribution that is matched by Wipro. scrutiny and feedback. Our endeavor going forward
Nearly 40,000 Wipro employees are engaged with will be to continue to ensure that Wipros social
Wipro Cares either through volunteering or by way initiatives continue to go beyond compliance and are
of monetary contributions or both. During 2016-17, designed to make deep, long lasting impact.
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-
Initiatives in sustainability Sustainability 45 districts in 21 states of India 22.00 25.80 47.60 73.40 25.80
education in schools and Education
colleges across India
Program of higher education Higher Bangalore 990.00 1,118.00 1,734.13 2,852.13 1,118.00
in engineering and Education for
technology linked to skills skills building
development for the IT
industry
Initiatives in improving Engineering All parts of India 5.00 2.00 14.56 16.56 2.00
education in engineering Education
colleges in India
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94
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(` in Million)
Sl. CSR project or activities Sector in Projects or Programs 1) Local area or Amount Amount Cumulative Cumulative Amount
No. identified which the others 2) specify the state and district Outlay spent expenditure expenditure spent : direct
project is where the project or programs are under (Budget) on the upto upto or through
covered taken project or projects or Previous reporting implementing
Program Programs reporting period agency
Wise period
3 Ensuring environmental Water Bangalore, Karnataka 11.00 11.51 7.10 18.61 11.51
sustainability, ecological Biodiversity Bangalore, Karnataka, Pune, Maharastra 8.00 8.45 15.20 23.65 8.45
balance, Agroforestry Energy Bangalore, Karnataka, Pune, Maharastra 605.00 529.78 827.32 1,357.10 529.78
Waste Bangalore, Karnataka 2.00 2.60 2.90 5.50 2.60
Management
Sustainability Bangalore, New Delhi, Mumbai, 12.00 14.67 19.33 34.00 14.67
Advocacy and Bhubhaneshwar and others (not location
Research dependent)
4 Rural Development projects Rural Uttarkashi (Uttarakhand), Cuddalore (Tamil 3.00 3.10 7.40 10.50 3.10
livelihood Nadu
programs
Total 1,804 1,863 2,921.42 4,784.38 1,862.96
Note : List of implementing partners are provided below.
9. A responsibility statement of the CSR Committee that the implementation and monitoring of CSR Policy: Yes, is in compliance with CSR Policy and Objectives
of the Company.
Sd/- Sd/-
Annexure VI
Form No. MGT-9
[Pursuant to Section 92(3) of the Companies Act, 2013 and rule12(1) of the Companies
(Management and Administration) Rules, 2014]
I. REGISTRATION AND OTHER DETAILS:
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, Bangalore 560 035
contact details Ph: 080 28440011, Fax: 080 28440258
Website: www.wipro.com
Email: info@wipro.com
vi. Whether listed company Yes
vii. Name, Address and Contact details of Karvy Computershare Private Limited,
Registrar and Transfer Agent,ifany Karvy Selenium Tower B, Plot 31-32, Gachibowli, Financial District,
Nanakramguda, Hyderabad 500 032
Contact Person:
Mr. B Srinivas
Deputy Manager
Tel: +91 40 67161500
Fax: +91 40 23440674
Email: srinivas.b@karvy.com
II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
All the business activities contributing 10% or more of the total turnover of the company shall be stated:-
Sl. Name and Description of main NIC Code of the % to total turnover of
No. products/services Product/service the company
1 IT Software, Services and related 62013 100%
activities 62020
III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES
Sr. Name of the Company Address of the Company CIN/GLN Holding/ % of Applicable
No. Subsidiary shares Section
/Associate held
1. Wipro LLC 2 Tower Center Blvd, Suite 2200; East Brunswick, NJ N/A Subsidiary 100 2(87)
08816, USA
2. Wipro Gallagher Solutions, 810 Crescent Centre Drive, Suite 400, Franklin, TN N/A Subsidiary 100 2(87)
Inc. 37067, USA
3. Opus Capital Market 100 Tri State International, Ste, 300A Lincolnshire, IL N/A Subsidiary 100 2(87)
Consultants LLC 60069, USA
4. Infocrossing, Inc. 2 Christie Heights Street, Leonia, NJ 07605, USA N/A Subsidiary 100 2(87)
5. Wipro Promax Analytics 2 Tower Center Blvd, Suite 2200; East Brunswick, NJ N/A Subsidiary 100 2(87)
Solutions LLC 08816, USA
6. Wipro Data Centre and 2 Christie Heights Street, Leonia, NJ 07605, USA N/A Subsidiary 100 2(87)
Cloud Services, Inc.
7. Wipro Insurance Solutions 1209, Orange St, Wilmington, New Castle N/A Subsidiary 100 2(87)
LLC Country-19801, USA
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Sr. Name of the Company Address of the Company CIN/GLN Holding/ % of Applicable
No. Subsidiary shares Section
/Associate held
8. Wipro IT Services, Inc. 2 Tower Cenyer Blvd., Ste. 2200, East Brunswick NJ. N/A Subsidiary 100 2(87)
08816, USA
9. Wipro Solutions Canada Atco Center, 909 11th Ave SW, Calgary, AB T2R 1L7, Canada N/A Subsidiary 100 2(87)
Limited
10. Wipro Japan KK Yokohama Landmark Tower 26F #2605, 2-2-1-1 Minato- N/A Subsidiary 100 2(87)
Mirai 2208126 Yokohama, Kanagawa, Japan
11. Wipro Shanghai Limited F3, Bldg 9, Zhangjiang Hi-Tech Park, Shanghai, Chna N/A Subsidiary 100 2(87)
12. Wipro Information Hoogoorddreef 15, 1101 BA Amsterdam, N/A Subsidiary 100 2(87)
Technology Netherlands BV The Netherlands
13. Wipro Chengdu Limited 3/F, A3, Building, Tianfu Software Park, Tianfu Avenue, N/A Subsidiary 100 2(87)
Hi-Tech Zone, Chengdu, China - 610041
14. Wipro (Thailand) Co. Limited 152, Chartered Square Building, Unit 17-02B, North N/A Subsidiary 100 2(87)
Sathorn Road, Kwaeng Silom, Khet Bangrak, Bangkok,
Thailand
15. Wipro Australia Pty Limited 1198 Toorak Road CamberwellMelbourneVictoria3124, N/A Subsidiary 100 2(87)
PO Box 1143 Hartwell Victoria 3124 Australia
16. Wipro Technologies Limited, str. 1, 109028, dom 13, Khokhlovsky pereulok Moscow, N/A Subsidiary 100 2(87)
Russia Russia
17. Wipro Technologies Unit 1, 7 Sky Close, Taylors Beach NSW 2316, Australia N/A Subsidiary 100 2(87)
Australia Pty Ltd.
18. PT WT Indonesia Regus Jakarta Menara Standard Chartered 30/F Menara N/A Subsidiary 100 2(87)
Standard Chartered Jl. 164 Jakarta. 12930. Indonesia
19. Wipro Travel Services Sarjapur Road, Doddakannelli, Bangalore 560035, India U91200KA1996PLC020622 Subsidiary 100 2(87)
Limited
20. Wipro Holdings (Mauritius) IFS Court, Twenty Eight, Cybercity, Ebene, Mauritius N/A Subsidiary 100 2(87)
Limited
21. Wipro Trademarks Holding Sarjapur Road, Doddakannelli, Bangalore - 560 035, U93090KA1982PLC021795 Subsidiary 100 2(87)
Limited India
22. Wipro Networks Pte 31, Cantonment Road, Singapor - 089747 N/A Subsidiary 100 2(87)
Limited
23. Wipro Technologies SDN Suite 702, 7th floor, Wisma Hangsam, Jalan Hang lekir, N/A Subsidiary 100 2(87)
BHD 50000, Kualalumpur, Malaysia
24. Wipro Airport IT Services Sarjapur Road, Doddakanelli, Bangalore 560035, India U72200KA2009PLC051272 Subsidiary 100 2(87)
Limited
25. Wipro BPO Philippines Cebu IT Tower 1 corner Archbishop Reyes Avenue and N/A Subsidiary 100 2(87)
Limited, Inc. Mindanao Street, Cebu Business Park, 6000 Cebu City,
Cebu, Philippines
26. Wipro Information 7, Azattyk Ave., Atyrau city, Kazakhstan N/A Subsidiary 100 2(87)
Technology Kazakhstan
LLP
27. Wipro IT Services Ukraine Regus - 42 - 44 Shovkovychna Street, Kiev 01601, N/A Subsidiary 100 2(87)
LLC Ukraine
28. Wipro Arabia Co. Limited Suite No. 209, Jarrir, Book Store Building, Alkhobar, PO N/A Subsidiary 100 2(87)
Box 31349, 31952, Saudi Arabia.
29. Wipro Information B-124, Smart Village, Cairo-Alex Desert Road, Giza, Egypt N/A Subsidiary 100 2(87)
Technology Egypt SAE
30. Wipro Bahrain Limited WLL Seef Business Centre Building #2795 5th Floor # 510 N/A Subsidiary 100 2(87)
Road 2835, Kingdom of Bahrain
31. Wipro Gulf LLC 322 Office # 28, KOM 4 Ground Floor, Knowledge Oasis N/A Subsidiary 100 2(87)
Muscat, Sultanate of Oman
32. Wipro Doha LLC Servcorp, Level 22, Tomado Tower, West Bay, Doha N/A Subsidiary 100 2(87)
33. Rainbow Software LLC D603, St.14, Building 43, Al Mansour, Baghdad, Iraq N/A Subsidiary 100 2(87)
34. Wipro Technologies SA Ave. Pedro Ramrez Vzquez 200-1, 4 Piso Valle Oriente, N/A Subsidiary 100 2(87)
DE CV Garza Garca, N.L., Mxico 66269
35. Wipro Do Brasil Technologia Joo Marchesini street, No. 139 - 5th and 6 th floor Post N/A Subsidiary 100 2(87)
LTDA Code: 80215-432 Curitiba/Parana - Brazil
36. Wipro Do Brasil Sistemetas Av. Maria Coelho Aguiar, 215 Bloco B 6. Andar Jd. N/A Subsidiary 100 2(87)
De Informatica Ltd. So LuisSo Paulo SP Zip code.: 05804-900, Brazil
37. Wipro Technlogies SA Carlos Pellegrini, 581 (Piso 7) 1009 Capital Federal, N/A Subsidiary 100 2(87)
Buenos Aires Argentina
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Sr. Name of the Company Address of the Company CIN/GLN Holding/ % of Applicable
No. Subsidiary shares Section
/Associate held
38. Wipro Technologies Peru Av.De la Floresta No. 497, Piso 5, San Borja, Lima, Peru N/A Subsidiary 100 2(87)
SAC
39. Wipro Technologies VZ, C.A Av.Blandin, Torre B.O.D. La Castellana.Caracas, N/A Subsidiary 100 2(87)
Venezuela.
40. Wipro Technologies W.T Escalante, Calle 31, Avenida 13, #2575, 7813-1000 San N/A Subsidiary 100 2(87)
Sociedad Anonima Jos, Costa Rica
41. Wipro Technologies Chile Andrs Bello 2711, 8th floor, Las Condes, Torre N/A Subsidiary 100 2(87)
SPA Costanera, CP 7550611, Santiago, Chile.
42. Wipro Information Millennium Park 6, A-6890 Lustenau, Austria N/A Subsidiary 100 2(87)
Technology Austria GmbH
43. Wipro Poland Sp Zoo Arkonska Business Park, ul. Arkoska 6/A2, 2 Floor, N/A Subsidiary 100 2(87)
80-387 Gdansk, Poland
44. Wipro IT Services Poland 16 th Floor, (Millennium Plaza), Al. Jerozolimskie 123a, N/A Subsidiary 100 2(87)
SP ZOO Warsaw 02-017, Poland
45. Wipro Portugal SA Avenida Da Boavista, 1223, 4100-130, Portugal N/A Subsidiary 100 2(87)
46. Wipro Technologies Norway Martin Linges Vei 25, No.1364, Snaroya, Norway N/A Subsidiary 100 2(87)
AS
47. Wipro Technologies SRL Trust Center Splaiul Independentei, nr 319C, sector 6, N/A Subsidiary 100 2(87)
Bucharest, Romania.
48. Wipro Technologies Austria Millennium Park 6, A-6890 Lustenau, Austria N/A Subsidiary 100 2(87)
GmbH
49. Newlogic Technologies 9/11 Allee de Larche, 92671 Courbevoie Cedex, France N/A Subsidiary 100 2(87)
SARL
50. Wipro Technologies GmbH Dusseldorferstr 71B, 40667 Meerbusch, Germany N/A Subsidiary 100 2(87)
51. cellent GmbH Ringtrabe, 70, 70736 Fellbach, Germany N/A Subsidiary 100 2(87)
52. cellent Mittelst and Schickardstr. 30, 71034 Bblingen, Germany N/A Subsidiary 100 2(87)
sberatung GmbH
53. cellent GmbH Austria Lassallestrae 7b, 1020 Vienna, Austria N/A Subsidiary 100 2(87)
54. Wipro Digital APS Philip Heymans Alle 7, 2900 Hellerup, Denmark N/A Subsidiary 100 2(87)
55. Designit A/S (Group Bygmestervej 61, 2400 Copenhagen NV, Denmark N/A Subsidiary 100 2(87)
Company)
56. Designit Denmark A/S Bygmestervej 61, 2400 Copenhagen NV, Denmark N/A Subsidiary 100 2(87)
57. Designit MunchenGmbH Steinerstrasse 15, building F, 81369 Munich N/A Subsidiary 100 2(87)
58. Denextep Spain Digital S.L C/ Mrtires de Alcal 4, 1, 28015 Madrid N/A Subsidiary 100 2(87)
59. Designit Oslo A/S Storgata 53A, 0182 Oslo, Norway N/A Subsidiary 100 2(87)
60. Designit Sweden AB Norra Stationsgatan 99, 11364 Stockholm N/A Subsidiary 100 2(87)
61. Designit T.L.V Ltd. 2, Sapir St, Herzeliya Pituach, Israel N/A Subsidiary 100 2(87)
62. Designit Tokyo Ltd. The Park Rex Koamicho Bldg 8F, 11-8 Koamicho N/A Subsidiary 100 2(87)
Nihombashi Chuo-ku Tokyo 103-0016
63. FRONTWORX Informations Lassallestrae 7b, 1020 Vienna, Austria N/A Subsidiary 100 2(87)
technologie GmbH
64. Wipro Cyprus Pvt. Ltd. Diomidous 10, Alphamega-Akropolis Building, 3rd Floor, N/A Subsidiary 100 2(87)
Office 401, 2024 Nicosia, Cyprus
65. Wipro Holdings Hungary H-1143 Budapest, Stefnia t 101-103, Hungary N/A Subsidiary 100 2(87)
Kft
66. Wipro Outsourcing Services Dromore House #rd Floor,Eastpark Business Centre, N/A Subsidiary 100 2(87)
(Ireland) Limited Shannon , Co. Clare, Ireland
67. Wipro Holdings ( UK) Devonshire House, 60 Goswell Road, London, EC1M 7AD, N/A Subsidiary 100 2(87)
Limited United Kingdom
68. Wipro Europe Limited Devonshire House, 60 Goswell Road, London, EC1M 7AD, N/A Subsidiary 100 2(87)
United Kingdom
69. Wipro UK Limited Devonshire House, 60 Goswell Road, London, EC1M 7AD, N/A Subsidiary 100 2(87)
United Kingdom
70. Wipro Retail Uk Limited Devonshire House, 60 Goswell Road, London, EC1M 7AD, N/A Subsidiary 100 2(87)
United Kingdom
71. Wipro Financial Services Devonshire House, 60 Goswell Road, London, United N/A Subsidiary 100 2(87)
UK Ltd. Kingdom, EC1M 7AD
72. Wipro Technologies SA The Forum, 10th Floor Office 162 Maude Street, N/A Subsidiary 100 2(87)
PTY Ltd. Sandton, 2198 Johannesburg, South Africa
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Sr. Name of the Company Address of the Company CIN/GLN Holding/ % of Applicable
No. Subsidiary shares Section
/Associate held
73. Wipro Technologies Nigeria 7th Floor, Mulliner Towers, 39 Alfred Rewane Road, N/A Subsidiary 100 2(87)
Limited (Kingsway Road), Ikoyi Lagos, Nigeria
74. Wipro Corporate 2nd Floor, Opeibea House, 37 Liberation Road, ACCRA, N/A Subsidiary 100 2(87)
Technologies Ghana Ltd. PO. BOX. CT 9347 Cantonments, ACCRA, Ghana
75. Wipro (Dalian) Limited D7, Spring-Field Park, Ganjingzi District, Dalian, China, N/A Subsidiary 100 2(87)
Peoples Republic of China, 116034
76. Wipro Overseas IT Services Sarjapur Road, Doddakanelli, Bangalore 560035, India U72200KA2015PTC080266 Subsidiary 100 2(87)
Private Limited
77. Healthplan Services 3501 E Frontage Rd, Tampa, FL 33607, USA N/A Subsidiary 100 2(87)
Insurance Agency, Inc.
78. Healthplan Services, Inc. 3501 E Frontage Rd, Tampa, FL 33607, USA N/A Subsidiary 100 2(87)
79. HPH Holdings Corp. State of Delaware, 1209 Orange Street, City of N/A Subsidiary 100 2(87)
Wilmington, Country of New Castle, 19801, USA
80. Appirio, Inc. 201 S. Capitol Ave., #1100 Indianapolis, IN 46225 N/A Subsidiary 100 2(87)
81. Appirio, K.K METLIFE Aoyama Building 8F, 2-11-16, Minami Aoyama, N/A Subsidiary 100 2(87)
Minato-ku, Tokyo, japan
82. Topcoder, Inc. 201 S. Capitol Ave., #1100, Indianapolis, IN 46225 N/A Subsidiary 100 2(87)
83. Appirio GmbH TorstraBe, 138, 10119, Berlin, Germany N/A Subsidiary 100 2(87)
84. Appirio Ltd. 92-93- St. Stephens Green, Dublin-2, Ireland N/A Subsidiary 100 2(87)
85. Apprio Ltd. (UK) Longcraft House, 2-8 Victoria Avenue, London, EC2M4NS, N/A Subsidiary 100 2(87)
UK
86. Saaspoint, Inc. 201 S. Capitol Ave., #1100, Indianapolis, IN 46225 N/A Subsidiary 100 2(87)
87. Appirio Singapore Pte Ltd. 3 - Raffles place, # 06-01, Bharat Building, Singapore N/A Subsidiary 100 2(87)
(048617)
88. Appirio India Cloud Fourth Floor, Tower b-1 Evolve Mahindra World City U72200RJ2013FTC042018 Subsidiary 100 2(87)
Solutions Private Limited Jaipur Rajasthan - 302037, India
89. Wipro Holdings 1143 Budapest, Stefnia t 101-103, Hungary N/A Subsidiary 100 2(87)
Investment KFT
90. Designit Colombia S A SCarrera 48 20 114 OFICINA 834, Medelln, Antioquia, N/A Subsidiary 100 2(87)
Colombia
91. Designit Peru S.A.C Av. Benavides 1180, Piso 7, Miraflores - Lima, Peru N/A Subsidiary 100 2(87)
92. KI Management Inc 201 S. Capitol Ave., #1100 Indianapolis, IN 46225 N/A Subsidiary 100 2(87)
93. Wipro SA Broad Based The Forum, 10th Floor Office 162 Maude Street, N/A Subsidiary 100 2(87)
Ownership Scheme SPV Sandton, 2198 Johannesburg, South Africa
(RF) (PTY) LTD*
* Wipro SA Broad Based Ownership Scheme SPV (RF) (PTY) LTD is incorporated in South Africa and controlled by Wipro Technologies SA Pty Ltd.
IV. SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)
i. Category-wise Share Holding
CATE CATEGORY OF SHAREHOLDER No. of shares held at the beginning of the year No. of shares held at the end of the year % Change
GORY (April 01, 2016) (March 31, 2017) during the
CODE Demat Physical Total % of Total Demat Physical Total % of Total year
shares shares
(A) PROMOTER AND PROMOTER
GROUP
(1) INDIAN
(a) Individual /HUF 95,419,432 - 95,419,432 3.86 95,419,432 - 95,419,432 3.93 0.06
(b) Central Government/State - - - - - - - - -
Government(s)
(c) Bodies Corporate (Promoter in 11,406,331 - 11,406,331 0.46 10,632,953 - 10,632,953 0.44 -0.02
his capacity as Director of Private
Limited/Section 25 Companies)
(d) Financial Institutions / Banks - - - - - - - - -
(e) Any Other -- Partnership firms 1,275,482,581 - 1,275,482,581 51.62 1,275,482,581 - 1,275,482,581 52.47 0.85
(Promoter in his capacity as
partner of Partnership firms)
(f) Others - Trust 429,714,120 - 429,714,120 17.39 399,065,641 399,065,641 16.42 (0.98)
Sub-Total A(1) : 1,812,022,464 - 1,812,022,464 73.34 1,780,600,607 - 1,780,600,607 73 .25 (0.09)
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CATE CATEGORY OF SHAREHOLDER No. of shares held at the beginning of the year No. of shares held at the end of the year % Change
GORY (April 01, 2016) (March 31, 2017) during the
CODE Demat Physical Total % of Total Demat Physical Total % of Total year
shares shares
(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) 1,812,022,464 - 1,812,022,464 73 .34 1,780,600,607 - 1,780,600,607 73.25 (0.09)
(B) PUBLIC SHAREHOLDING
(1) INSTITUTIONS
(a) Mutual Funds/UTI 48,295,077 - 48,295,077 1.95 61,163,808 - 61,163,808 2.52 0.56
(b) Financial Institutions/Banks 9,418,428 - 9,418,428 0.38 15,143,905 - 15,143,905 0.62 0.24
(c) Central Government/State - - - - - - - -
Government(s)
(d) Venture Capital Funds - - - - - - - -
(e) Insurance Companies 55,168,621 - 55,168,621 2.23 63,947,020 - 63,947,020 2.63 0.40
(f) Foreign Institutional Investors 270,144,642 - 270,144,642 10.93 247,779,877 247,779,877 10.19 (0.74)
(g) Foreign Venture Capital - - - - - - - - -
Investors
(h) Qualified Foreign Investor - - - - - - - - -
(i) Others - - - - - - - - -
Sub-Total B(1) : 383,026,768 - 383,026,768 15.50 388,034,610 - 388,034,610 15.96 0.46
(2) NON-INSTITUTIONS
(a) Bodies Corporate 57,724,943 239,807 57,964,750 2.35 33,111,912 239,224 33,351,136 1.37 (0.97)
(b) NBFCs Registered with RBI 21,089 - 21,089 0.00 20,517 20,517 0.00 0.00
Overseas Corporate Bodies 11,772 - 11,772 0.00 11,772 11,772 0.00 0.00
Individuals
(i) I ndividuals holding nominal 54,102,846 1,752,175 55,855,021 2.26 54,843,521 1,350,914 56,194,435 2.31 0.05
share capital upto `1 lakh
(ii) I ndividuals holding nominal 43,663,026 22,507,907 66,170,933 2.68 59,000,352 19,193,573 78,193,925 3.22 0.54
share capital in excess of
`1 lakh
(c) Qualified Foreign Investor - - - - - - - - -
(d) Others
NON-RESIDENT INDIANS 9,352,050 1,805,443 11,157,493 0.45 8,272,838 21 8,272,859 0.34 (0.11)
Foreign Bodies - DR 56,396 - 56,396 0.00 42,949 42,949 0.00 0.00
TRUSTS
(a) Wipro Equity Reward Trust 14,829,824 - 14,829,824 0.60 13,728,607 13,728,607 0.56 (0.04)
(b) Other Trusts 2,814,046 - 2,814,046 0.11 2,820,938 2,820,938 0.12 0.01
Non-Executive Directors and 217,526 - 217,526 0.01 1,867 1,867 0.00 (0.01)
Executive Directors & Relatives
CLEARING MEMBERS 1,118,380 - 1,118,380 0.05 2,146,392 2,146,392 0.09 0.04
FOREIGN NATIONAL 16,785,376 - 16,785,376 0.68 18,642,447 18,642,447 0.77 0.09
Sub-Total B(2) : 200,697,274 26,305,332 227,002,606 9.19 192,644,112 20,783,732 213,427,844 8.78 (0.41)
Total B=B(1)+B(2) : 583,724,042 26,305,332 610,029,374 24.69 580,678,722 20,783,732 601,462,454 24.74 0.05
Total (A+B) : 2,395,746,506 26,305,332 2,422,051,838 98.03 2,361,279,329 20,783,732 2,382,063,061 97.99 (0.04)
(C) Shares held by custodians, against which Depository Receipts have been issued
(1) Promoter and Promoter Group - - -
(2) Public 48,661,452 - 48,661,452 1.97 48,837,504 48,837,504 2.01 0.04
GRAND TOTAL (A+B+C) : 2,444,407,958 26,305,332 2,470,713,290 100 .00 2,410,116,833 20,783,732 2,430,900,565 100
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Sr. Shareholders Name Shareholding at the beginning of the year Shareholding at the end of the year % change in
No. (April 01, 2016) (March 31, 2017) shareholding
No. of Shares % of total %of Shares No. of Shares % of total %of Shares during the
Shares of the Pledged / Shares of the Pledged / year
Company encumbered company encumbered
to total to total
shares shares
1 Azim H Premji 93,405,100 3.78 0 93,405,100 3.84 0 0.06
2 Yasmeen A Premji 1,062,666 0.04 0 1,062,666 0.04 0 0
3 Rishad A Premji 686,666 0.03 0 686,666 0.03 0 0
4 Tariq A Premji 265,000 0.01 0 265,000 0.01 0 0
5 Mr. Azim H Premji Partner 452,906,791 18.33 0 452,906,791 18.63 0 0.30
representing Prazim Traders
6 Mr. Azim H Premji Partner 451,619,790 18.28 0 451,619,790 18.58 0 0.30
representing Zash Traders
7 Mr. Azim H Premji Partner 370,956,000 15.01 0 370,956,000 15.26 0 0.25
representing Hasham Traders
8 Azim Premji Philanthropic 10,843,333 0.44 0 10,069,955 0.42 0 -0.02
Initiatives Private Limited (1)
9 Hasham Investment and 562,998 0.02 0 562,998 0.02 0 0
Trading Company Pvt Ltd.
10 Azim Premji Trust (2) 429,714,120 17.39 0 399,065,641 16.42 0 (0.97)
TOTAL 1,812,022,464 73.34 0 1,780,600,607 73.25 0 (0.09)
Note:
Mr. Azim H Premji has disclaimed the beneficial ownership of shares held by Azim Premji Philanthropic Initiatives Private Limited
(1)
(2)
Mr. Azim H Premji has disclaimed the beneficial ownership of shares held by Azim Premji Trust
iv. Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs):
Sl. For Each of the Top 10 Shareholding at the beginning Cumulative Shareholding/
No. Shareholders of the year during the year
No.of shares % of total shares No.of shares % of total shares
of the company of the company
1. At the beginning of the year (April
01, 2016)
2. D ate w i s e I n c re a s e / D e c re a s e
in Shareholding during the year
specifying the reasons for increase/
Refer Annexure A
decrease (e.g. allotment/transfer/
bonus /sweatequity etc):
3, At the End of the year (or on the date
of separation,if separated during
the year)
V. Shareholding of Directors and Key Managerial Personnel:
Sl. For Each of the Directors and KMP Shareholding at the beginning of Cumulative Shareholding during the
No. the year (April 1, 2016) year (2016-17)
No. of shares % of total shares No. of shares % of total shares
of the company of the company
1. At the beginning of the year
2. Date wise Increase/Decrease
in Shareholding during the year
specifying the reasons for increase/ Refer Annexure B
decrease (e.g. allotment/transfer/
bonus/sweat equity etc):
3. At the end of the year (March 31, 2017)
V. INDEBTEDNESS
Indebtedness of the Company including interest outstanding/accrued but not due for payment. (` in Million)
Secured Loans Unsecured Deposits Total
excluding deposits Loans Indebtedness
Indebtedness at the beginning of the
financial year
i) Principal Amount 2,037 66,092 - 68,129
ii) Interest due but not paid - - - -
iii) Interest accrued but not due - 126 - 126
Total (i+ii+iii) 2,037 66,218 - 68,255
Change in Indebtedness during the
financial year
Addition 1,426 82,619 - 84,045
Reduction 1,194 90,433 - 91,627
ERF (Gain)/Loss for foreign currency - 2,519 - 2,519
loans
Net Change 232 (5,295) - (5,063)
Indebtedness at the end of the financial
year
i) Principal Amount 2,268 60,830 - 63,098
ii) Interest due but not paid - - - -
iii) Interest accrued but not due - 93 - 93
Total (i+ii+iii) 2,268 60,923 - 63,192
Note: Obligation under finance lease is secured by underlying fixed assets. These obligations are repayable in monthly, quarterly
and yearly installments up to year ending March 31, 2021. The interest rate for these obligations ranges from 1.82% to 17.19%.
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Annexure A
SHAREHOLDING PATTERN OF TOP 10 SHAREHOLDERS BETWEEN April 01, 2016
AND March 31, 2017 (OTHER THAN DIRECTORS, PROMOTERS AND HOLDERS OF ADRs)
Sl. Date of Nature of Name of the Share Holder Shareholding at the Cumulative Shareholding
No. Transaction Transaction beginning of the Year during the Year
No. of % of total No. of % of total
Shares shares of the Shares shares of the
company Company
1 01/04/2016 Opening Balance Life Insurance Corporation of India 53,059,178 2.15 53,059,178 2.15
13/05/2016 Purchase 26,643 0.00 53,085,821 2.15
20/05/2016 Purchase 1,493,773 0.06 54,579,594 2.21
27/05/2016 Purchase 640,962 0.03 55,220,556 2.24
03/06/2016 Purchase 158,488 0.01 55,379,044 2.24
10/06/2016 Purchase 977,660 0.04 56,356,704 2.28
17/06/2016 Purchase 378,801 0.02 56,735,505 2.30
09/09/2016 Purchase 439,031 0.02 57,174,536 2.35
16/09/2016 Purchase 1,590,581 0.07 58,765,117 2.42
23/09/2016 Purchase 1,574,260 0.06 60,339,377 2.48
30/09/2016 Purchase 1,340,707 0.06 61,680,084 2.54
07/10/2016 Purchase 55,421 0.00 61,735,505 2.54
31/03/2017 Closing Balance - 61,735,505 2.54
2 01/04/2016 Opening Balance ALCO COMPANY PRIVATE LIMITED 16,787,000 0.68 16,787,000 0.68
24/06/2016 Sale 87,000 0.00 16,700,000 0.68
31/03/2017 Closing Balance - 16,700,000 0.69
3 01/04/2016 Opening Balance ABDULREHMAN HAJI EBRAHIM COCHINWALA 17,221,818 0.62 17,221,818 0.62
(Shares in custody of Custodian of enemy property)
31/03/2017 Closing Balance - 17,221,818 0.71
4 01/04/2016 Opening Balance WIPRO EQUITY REWARD TRUST* (ESOP Trust) 14,829,824 0.60 14,829,824 0.60
01/04/2016 Transfer of 1,101,217 0.04 13,728,607 0.56
to shares pursuant
31/03/2017 to exercise of
vested stock
options
31/03/2017 Closing Balance - 13,728,607 0.56
5 01/04/2016 Opening Balance WGI EMERGING MARKETS FUND LLC 14,130,408 0.57 14,130,408 0.57
08/04/2016 Purchase 428,119 0.02 14,558,527 0.59
03/06/2016 Purchase 275,039 0.01 14,833,566 0.60
08/07/2016 Purchase 303,284 0.01 15,136,850 0.62
15/07/2016 Purchase 423,172 0.02 15,560,022 0.64
05/08/2016 Purchase 260,840 0.01 15,820,862 0.65
12/08/2016 Purchase 166,076 0.01 15,986,938 0.66
19/08/2016 Sale 97,180 0.00 15,889,758 0.65
26/08/2016 Sale 1,025,016 0.04 14,864,742 0.61
02/09/2016 Sale 1,801,922 0.07 13,062,820 0.54
09/09/2016 Sale 1,203,142 0.05 11,859,678 0.49
* 1,101,217
shares were
16/09/2016 Sale transferred to eligible employees pursuant to exercise of vested stock options.
963,839 0.04 10,895,839 0.45
23/09/2016 Sale 1,110,275 0.05 9,785,564 0.40
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Annexure B
Name of the Directors and Date of the transaction Shareholding at the Cumulative
Key Managerial Personnel beginning of the year Shareholding of the year
April 01, 2016 (2016-17)
No. of % of total No. of % of total
Shares shares Shares shares
of the of the
company company
Azim H Premji
Executive Chairman & Managing Director Opening Balance - 01/04/2016 95,419,432@ 3.86 - -
Purchase/ Sales - - -
Closing Balance 31/03/2017 95,419,432 3.86 95,419,432 @
3.93
Rishad A Premji
Executive Director and Chief Strategy Opening Balance - 01/04/2016 686,666 0.03 - -
Officer
Purchase/ Sales - - -
Closing Balance 31/03/2017 686,666 0.03 686,666 0.03
Ashok S Ganguly
Independent Director Opening Balance - 01/04/2016 1,867 0.00008 - -
Purchase/ Sales - - -
Closing Balance 31/03/2017 1,867 0.00008 1,867 0.00008
N Vaghul
Independent Director Opening Balance - 01/04/2016 - - - -
Purchase/ Sales - - -
Closing Balance 31/03/2017 - - - -
William A Owens
Independent Director Opening Balance - 01/04/2016 - - - -
Purchase/ Sales - - -
Closing Balance 31/03/2017 - - - -
T K Kurien*
Executive Vice-Chairman Opening Balance - 01/04/2016 215,659 0.008 - -
Sale - 8/07/2016 3,090 0.0001 - -
Closing Balance 31/03/2017 212,569 0.008 212,569 0.008
Abidali Z Neemuchwala Opening Balance - 01/04/2016 - - - -
Chief Executive Officer and Executive Purchase/Sales - - - -
Director
Closing Balance 31/03/2017 - - - -
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110
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Name of the Directors and Date of the transaction Shareholding at the Cumulative
Key Managerial Personnel beginning of the year Shareholding of the year
April 01, 2016 (2016-17)
No. of % of total No. of % of total
Shares shares Shares shares
of the of the
company company
M K Sharma
Independent Director Opening Balance - 01/04/2016 - - - -
Purchase/ Sales - - - -
Closing Balance 31/03/2017 - - - -
Ireena Vittal - - - -
Independent Director Opening Balance - 01/04/2016 - - - -
Purchase/ Sales - - - -
Closing Balance 31/03/2017 - - -
Patrick J Ennis - -
Independent Director Opening Balance - 01/04/2016 - - - -
Purchase/ Sales - - - -
Closing Balance 31/03/2017 - - - -
Patrick A Dupuis - -
Independent Director Opening Balance - 01/04/2016 - - - -
Purchase/ Sales - - - -
Closing Balance 31/03/2017 - -
M Sanaulla Khan
Company Secretary Opening Balance - 01/04/2016 - - - -
Purchase/ Sales - - - -
Closing Balance 31/03/2017 - - - -
* Mr. T K Kurien, who was Executive Vice Chairman of the Company retired from the services of the Company and the
Board effective January 31, 2017.
@
includes shares held jointly by Mr. Azim Premji and members of his immediate family.
$
includes shares held jointly by Mr. Jatin Pravinchandra Dalal and a member of his immediate family.
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Annexure C
Remuneration to other Directors 2016-17: (` in Crores)
Particulars of
Name of Independent Directors
Remuneration
Independent Directors Mr. N Dr. Dr. Mr. Mr.M K Mr. Ms Mr. Dr.
Vaghul Ashok Jagdish Vyomesh Sharma William Ireena Patrick Patrick
Ganguly Sheth*# Joshi*^ Owens* Vittal Dupuis Ennis*@
*@
Fee for attending 0.04 0.03 - 0.01 0.04 0.03 0.03 0.03 0.03
board and committee
meetings**
Commission 0.62 0.52 0.47 0.47 0.50 2.00 0.50 1.57 1.57
TOTAL (1) 0.66 0.55 0.47 0.48 0.54 2.03 0.53 1.60 1.60
Corporate Governance
Report
present our annual Strategic Plan and Operating Name Designation Number of
Plans of our business to the Board for their review, Board Meetings
inputs and approval. Likewise, our quarterly financial attended
statements and annual financial statements Ms. Ireena Vittal Independent 41
are first presented to the Audit Committee and Director
subsequently to the Board for their approval. In
Dr. Ashok S Independent 41
addition, specific cases of acquisitions, important Ganguly Director
managerial decisions, material positive/negative
Mr. William Independent 41
developments and statutory matters are presented Arthur Owens Director
to the respective Committees of the Board and later
Mr. Vyomesh Independent 12
with the recommendation of such Committees to the
Joshi Director
Board for their approval.
Dr. Jagdish N Independent 03
As a system, in most cases, information to Directors is Sheth Director
submitted along with the agenda papers well in advance Mr. T K Kurien Executive Vice 54
of the Board meeting. Inputs and feedback of Board Chairman
Members are taken and considered while preparation
Mr. Abidali Z Chief Executive 35
of agenda and documents for the Board meeting. Neemuchwala Officer and
Board Meetings Executive
Director
We decide about the Board meeting dates in Mr. Rishad A Executive 5
consultation with Board Governance, Nomination Premji Director and Chief
and Compensation Committee and all our Directors, Strategy Officer
based on the practices of earlier years. Once Dr. Patrick Ennis Independent 46
approved by the Board Governance, Nomination Director
and Compensation Committee, the schedule of the Mr. Patrick Independent 46
Board meeting and Board Committee meetings is Dupuis Director
communicated in advance to the Directors to enable
them attend the meetings. Our Board meetings 1
s. Ireena Vittal, Dr. Ashok S Ganguly and Mr. William
M
are normally scheduled over two days. In addition, Arthur Owens did not attend the Board Meeting held
every quarter, Independent Directors meet amongst on June 3, 2016.
themselves exclusively.
2
r. Vyomesh Joshi did not attend the Board Meetings
M
The Board met five times during the financial year held on April 19-20, 2016 and June 3, 2016. Further,
2016-17 on April 19-20, 2016, June 3, 2016, July 18- he resigned from the Board of Directors with effect
19, 2016, October 20-21,2016 and January 24-25, from July 19, 2016.
2017. The necessary quorum was present for all the
3
r. Jagdish N Sheth did not attend the Board
D
meetings. The maximum interval between any two
Meetings held on April 19-20, 2016 and June 3, 2016.
meetings did not exceed 120 days.
Further, he retired from the Board of Directors with
Details of attendance of Directors at the Board effect from July 18, 2016.
Meetings during the year 2016-17 is provided below:
4
r.T K Kurien, who was Executive Vice Chairman
M
Name Designation Number of of the Company retired from the services of the
Board Meetings Company and the Board effective January 31, 2017.
attended
Mr. Azim H Executive 5
5
r. Abidali Z Neemuchwala did not attend the
M
Premji Chairman and meeting held on June 3, 2016 and participated in
Managing the Board meeting held on October 21, 2016 through
Director video conference.
Mr. N Vaghul Independent 5
Director
6
r. Patrick Ennis and Mr. Patrick Dupuis were
D
appointed as Independent Directors of the Company
Mr. M K Sharma Independent 5 with effect from April 1, 2016. They did not attend
Director
the Board Meeting held on June 3, 2016.
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114
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As part of ongoing training, the Company schedules I ndependent Directors are not entitled to
quarterly meetings of business heads and functional participate in the stock option schemes of the
heads with the Independent Directors. During these Company.
meetings, comprehensive presentations are made on
the various aspects such as business models, new In determining the remuneration of Chairman and
strategic initiatives, risk minimization procedures, Managing Director, Executive Directors, Senior
recent trends in technology, changes in domestic/ Management Employees and Key Managerial
overseas industry scenario, and regulatory regime Personnel, the Board Governance, Nomination and
affecting the Company globally. These meetings Compensation Committee and Board considers the
also facilitate Independent Directors to provide following:
their inputs and suggestions on various strategic
and operational matters directly to the business and the balance between fixed and variable pay
functional heads. reflecting short and long term performance
objectives, appropriate to the working of the
Board Evaluation Company and its goals.
Details of methodology adopted for Board evaluation
lignment of remuneration of KMP and Directors
a
have been provided at page no. 71 of the Boards
with long-term interests of the Company.
Report.
Remuneration Policy and Criteria of Making irectors forming part of the Promoter and
D
Payments to Directors, Senior Management and Key Promoter Group shall not be entitled to receive
Managerial Personnel stock options.
The Independent Directors are entitled to receive Companys performance vis--vis the annual
remuneration by way of sitting fees, reimbursement achievement, individuals performance vis--
of expenses for participation in the Board/Committee vis KRAs/KPIs, industry benchmark and current
meetings and commission as detailed hereunder: compensation trends in the market.
sitting fees for each meeting of the Board attended The Board Governance, Nomination and Compensation
by him or her, of such sum as may be approved Committee recommends the remuneration for the
by the Board of Directors within the overall limits Chairman and Managing Director, other Executive
prescribed under the Companies Act, 2013. Directors, Senior Management and Key Managerial
commission on a quarterly basis, of such sum as Personnel. The payment of remuneration to Executive
may be approved by the Board and Members on Directors is approved by the Board and Members.
the recommendation of the Board Governance, Prior approval of Members is also obtained in case
Nomination and Compensation Committee. The of remuneration to Non-Executive Directors.
total commission payable to the Independent
Directors shall not exceed 1% of the net profits Details of Remuneration to Directors
of the Company during any financial year. The Details of remuneration paid to the Directors for the
commission is payable on pro-rata basis to those services rendered and stock options granted during the
Directors who occupy office for part of the year.
financial year 2016-17 are given below. No stock options
reimbursement of expenses for participation in were granted to any of the Independent Directors and
Board/Committee meetings. Promoter Directors during the year 2016-17.
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116
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(in `)
Azim H N Vaghul Dr. Jagdish Dr. Ashok S William T K Kurien** MK Vyomesh Ireena Abidali Z Rishad A Patrick Patrick
Premji N Sheth* Ganguly Arthur Sharma Joshi* Vittal Neemuchwala* Premji Ennis* Dupuis*
Owens*
Relationship Father of None None None None None None None None None Son of Azim None None
with directors Rishad A H Premji
Premji
Commission/ - 61,90,833 46,91,048 51,71,666 1,99,73,800 93,64,512 50,15,833 47,33,693 50,15,833 97,43,323 31,45,073 1,56,93,700 1,56,93,700
Incentives/
Variable Pay
Sitting fees# - 3,60,000 - 2,80,000 2,80,000 - 3,60,000 40,000 3,20,000 - - 2,60,000 2,60,000
Total 79,02,131 65,50,833 46,91,048 54,51,666 2,02,53,800 9,70,37,410 53,75,833 47,73,693 53,35,833 13,55,75,058 1,68,61,917 1,59,53,700 1,59,53,700
Grant of - - - - - - - - - 3,00,000*** - - -
Restricted
Stock Units
Terms of Employment Arrangements and gratuity which are offered to all of our employees,
but no other benefits upon termination of employment
Under the Companies Act, 2013, our shareholders except as mentioned below.
must approve the salary, bonus and benefits of all
Executive Directors. Each of our Executive Directors Pursuant to the terms of Mr. Abidali Z Neemuchwala s
has signed an agreement containing the terms and employment, he is entitled to the following severance
conditions of employment, including a monthly payment:
salary, performance bonus and benefits including
vacation, medical reimbursement and pension fund If the Agreement is terminated by the Company,
contributions. These agreements have varying terms the Company is required to pay Mr. Abidali Z
ranging from two to five year periods, but either we or Neemuchwala severance pay equivalent of 12
the Executive Director may generally terminate the months base pay.
agreement upon six months notice to the other party. We also indemnify our Directors and Officers for claim
The terms of our employment arrangements with brought under any rule of law to the fullest extent
Mr. Azim H Premji, Mr. Abidali Z Neemuchwala and permitted by applicable law. Among other things,
Mr.Rishad A Premji provide for up to a 180-days notice we agree to indemnify our Directors and Officers for
period, up to 21 days of leave per year in addition certain expenses, judgments, fines and settlement
to statutory holidays, and an annual compensation amounts incurred by any such person in any action
review. Additionally, these officers are required to or proceeding, including any action by or in the right
relocate as we may determine, and to comply with of the Company, arising out of such persons services
confidentiality provisions. Service contracts with as our Director or Officer, including claims which
our Executive Directors and officers provide for our are covered by the Directors and Officers liability
standard retirement benefits that consist of a pension insurance policy taken by the Company.
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117
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capability map that reflects the extent to which critical valuation of internal financial controls and risk
E
talent needs are fulfilled vis-a-vis business drivers. management systems and policies.
The Board Governance, Nomination and Compensation
Committee reviews the outcome of this process and The Chairman of the Audit, Risk and Compliance
presents the succession plan for senior management Committee was present at the Annual General
and other executive officers to the Board. Meeting held on July 18, 2016. The detailed charter of
the Committee is available on our website at http://
III. Committees of Board www.wipro.com/investors/corporate-governance/
charters/. All members of our Audit, Risk and
Our Board has constituted sub-committees to focus
Compliance Committee are Independent Directors
on specific areas and make informed decisions within
the authority delegated to each of the Committees. and financially literate. The Chairman of our Audit,
Each Committee of the Board is guided by its Charter, Risk and Compliance Committee has the accounting
which defines the scope, powers and composition of and financial management related expertise.
the Committee. All decisions and recommendations Statutory Auditors as well as Internal Auditors always
of the Committees are placed before the Board for have independent meetings with the Audit, Risk and
information or approval. Compliance Committee and also participate in the
We have four sub-committees of the Board as at Audit, Risk and Compliance Committee meetings. Our
March 31, 2017: Chief Financial Officer, General Counsel and other
Corporate Officers make periodic presentations to
udit, Risk and Compliance Committee, which
A the Audit, Risk and Compliance Committee on various
also acts as Risk Management Committee issues.
oard Governance, Nomination and
B
The Audit, Risk and Compliance Committee met
Compensation Committee, which also oversees
seven times during the year 2016-17 on April 19,
the CSR initiatives of the Company
2016, May 26, 2016**, June 3, 2016, July 18, 2016,
Strategy Committee October 20, 2016, January 24, 2017 and March 1,
2017. Composition of the Audit, Risk and Compliance
dministrative and Shareholders/Investors
A
Committee and details of attendance of members at
Grievance Committee (Stakeholders
Relationship Committee) its meetings during the year 2016-17 is given below:
Evaluating the Board on a continuing basis, aking recommendations to the Board relating
M
including an assessment of the effectiveness of to the Companys mission, vision, strategic
the full Board, operations of the Board Committees initiatives, major programs and services.
and contributions of individual directors.
nsuring management has established an
E
stablishing policies and procedures to assess
E effective strategic planning process, including
the requirements for induction of new members development of a three to five-year strategic
to the Board. plan with measurable goals and time targets.
nsuring that appropriate procedures are in
E stablishing criteria for management to evaluate
E
place to assess Board membership needs and potential strategic investments, reviewing
Board effectiveness. proposals for acquisition or divestment
Reviewing the Companys policies that relate to opportunities for the Company and making
matters of corporate social responsibility (CSR), appropriate recommendations to the Board, and
including public issues of significance to the reviewing post-transaction integration matters.
Company and its shareholders.
M onitoring the organizations performance
ormulating the Disclosure Policy, its review and
F against measurable targets or progress points.
approval of disclosures.
Annually reviewing the strategic plan for the
pproving and evaluating the compensation
A Company and for each division and entity as well
plans, policies and programs for Directors and and recommending updates to the Board.
senior management and
A ssissting in the development of strategic
cting as Administrator of the Companys
A
dashboard of key indicators.
Employee Stock Option Plans and Employee
Stock Purchase Plans drawn up from time to time. The Strategy Committee met once in the financial year
on April 19, 2016. Subsequently, the Strategy Committee
The detailed charter of Board Governance, Nomination
reviewed the progress on strategy initiatives as part
and Compensation Committee is available on
of meetings of the Board. Composition of the Strategy
our website at http://www.wipro.com/investors/
Committee and details of attendance of members at its
corporate-governance/charters/.
meetings during the year 2016-17 is given below:
Pursuant to the provisions of the Companies Act,
2013 and the Listing Regulations, the Board has Number of
carried out an Annual Performance Evaluation of its Name Position meetings
own performance, the Directors individually as well attended
as the evaluation of the working of its Committees. Mr. William Arthur Owens Chairman 1
The Board Governance, Nomination and Compensation Dr. Jagdish N Sheth Member 01
Committee met four times during the year 2016-
Mr. Vyomesh Joshi Member 02
17 on April 20, 2016, July 18, 2016, October 20,
2016 and January 24, 2017. Composition of the Mr. Azim H Premji Member 1
Board Governance, Nomination and Compensation Mr. T K Kurien Member 13
Committee and details of attendance of members at
its meetings during the year 2016-17 is given below: Dr. Patrick Ennis Member 1
Mr. Patrick Dupuis Member 1
Name Position Number of
Mr. Abidali Z Neemuchwala Member NA4
meetings attended
Dr. Ashok S Chairman 4 Mr. Rishad A Premji Member NA4
Ganguly 1
Dr. Jagdish Sheth retired from the Board of Directors
Mr. N Vaghul Member 4 effective July 18, 2016
Mr. William Member 4 2
M r. Vyomesh Joshi resigned from the Board of
Arthur Owens Directors effective July 19, 2016
Strategy Committee 3
M r. T K Kurien was a member of the Strategy
Committee till January 31, 2017.
The Strategy Committee reviews, acts and reports
to our Board with respect to the mission, vision 4
r. Abidali Z Neemuchwala and Mr. Rishad A Premji
M
and strategic direction of the Company. Primary became members of the Strategy Committee with
responsibilities of this Committee, inter alia, are: effect from February 1, 2017
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120
opened
Subsidiary Monitoring Framework Exchange Act of 1934 (Exchange Act). The SEC
acknowledged your Companys cooperation and
All the subsidiaries of the Company are managed
remedial measures in arriving at the settlement.
by their Boards having the rights and obligations
Under the terms of the settlement, your Company
to manage these companies in the best interest of
consented to pay a civil money penalty of US $5
respective stakeholders. The Company nominates its
million, to cease and desist from committing or
representatives on the Board of subsidiary companies
causing violations of the Exchange Act, and to
and monitors performance of such companies, inter
undertake certain follow through actions.
alia, by reviewing;
Whistle Blower Policy and affirmation that no
inancial statements, in particular the investment
F
personnel have been denied access to the Audit, Risk
made by the unlisted subsidiary companies,
& Compliance Committee
statement containing all significant transactions
and arrangements entered into by the unlisted As mentioned earlier in this report, the Company has
subsidiary companies forming part of the adopted an Ombuds process which is a channel for
financials being reviewed by the Audit, Risk and receiving and redressing employees complaints. No
Compliance Committee of your Company on a personnel in the Company has been denied access
quarterly basis. to the Audit, Risk and Compliance Committee or its
inutes of the meetings of the unlisted
M Chairman.
subsidiary companies, if any, are placed before Disclosures with respect to demat suspense account/
the Companys Board regularly. unclaimed suspense account (Unclaimed Shares)
P roviding necessary guarantees, Letter of Pursuant to regulation 39 of the Listing Regulations,
Comfort and other support for their day-to-day reminder letters have been sent to shareholders whose
operations from time-to-time. shares remain unclaimed from the Company. Based
The Company does not have any material subsidiary on their response, such shares will be transferred to
whose net worth exceeds 20% of the consolidated unclaimed suspense account as per the provisions of
net worth of the holding Company in the immediately Schedule VI of the Listing Regulations. The disclosure
preceding accounting year or which has generated as required under schedule V of the Listing Regulations
20% of the consolidated income of the Company as of March 31, 2017 is given below:
during the previous financial year. (a) Aggregate number of shareholders and the
Certificate on Corporate Governance outstanding shares in the suspense account lying
at the beginning of the year - 308 shareholders
The certificate dated April 15, 2017 issued by Mr.V holding 2,00,968 shares
Sreedharan, Partner, V Sreedharan & Associates,
Company Secretaries, is given at page no.129 of (b) Number of shareholders who approached listed
this Annual Report in compliance with corporate entity for transfer of shares from suspense
governance norms prescribed under the Listing account during the year - Nil
Regulations.
(c) Number of shareholders to whom shares were
Details of non-compliance by the Company, transferred from suspense account during the
penalties, and strictures imposed on the Company by year - Nil
Stock Exchanges or SEBI or any statutory authority,
(d) Aggregate number of shareholders and the
on any matter related to capital markets, during the
last three years. outstanding shares in the suspense account
lying at the end of the year - 308 shareholders
The Company has complied with the requirements of the holding 2,00,968 shares
Stock Exchanges or SEBI on matters related to Capital
Markets, as applicable, during the last three years. (e) Voting rights on these shares shall remain frozen
till the rightful owner of such shares claims the
Settlement with Securities and Exchange Commission shares - Yes
During the year ended March 31, 2017, your Company Shareholder Information
resolved the previously disclosed investigation of
the Securities and Exchange Commission (SEC). In Various shareholder information required to be
agreeing to the settlement, your Company neither disclosed pursuant to Schedule V of the Listing
admitted nor denied the SECs allegations that your Regulations are provided in Annexure I to this report.
Company violated certain provisions of the Securities Compliance with Mandatory Requirements
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123
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Your Company has complied with all the mandatory Executive Officer
corporate governance requirements under the Listing
Mr. Azim H Premji is the Executive Chairman
Regulations. Specifically, your Company confirms
and Managing Director of the Company and Mr.
compliance with corporate governance requirements Abidali Z Neemuchwala is the Chief Executive
specified in regulation 17 to 27 and clauses (b) to (i) Officer of the Company. The Companys Board
of sub- regulation (2) of regulation 46 of the Listing consists of majority of Independent Directors. All
Regulations. policy and strategic decisions of the Company
VI. Compliance Report on Non-mandatory requirements are taken through a majority decision of this
under Regulation 27(1) independent Board.
5. Reporting of Internal Auditor
1. The Board
Reporting of Head of Internal Audit is to the
As per para A of Part E of Schedule II of the Listing Chairman of the Audit Committee of the Board
Regulations, a non-executive Chairman of the and administratively to the Chief Financial Officer.
Board may be entitled to maintain a Chairmans Head of Internal Audit has regular and exclusive
Office at the companys expense and also meetings with the Audit Committee prior to
allowed reimbursement of expenses incurred in reports of Internal Audit getting discussed with
performance of his duties. The Chairman of the the Management team.
Company is an Executive Director and hence this
provision is not applicable to us. 6. NYSE Corporate Governance Listing Standards
Appointment of Mr. William Arthur Owens as an Revision in the payment of remuneration to Mr. Rishad
Independent Director A Premji as an Executive Director and Chief Strategy
Officer
Appointment of Mr. M K Sharma as an Independent
Director Means of Communication with Shareholders/Analysis
News Releases and Presentations: All our news releases In addition, the Board may meet on other dates as and
and presentations made at investor conferences and to when required.
analysts are posted on the Companys website at www.
The Register of Members and Share Transfer books will
wipro.com/corporate/investors.
remain closed from July 17, 2017 to July 19, 2017 (both
Quarterly results: Our quarterly results are published days inclusive).
in widely circulated national newspapers such as The
Dividend
Business Standard and the local daily Kannada Prabha.
Pursuant to the approval of the Board on January 25,
Website: The Companys website contains a separate
2017, your Company paid an interim dividend of `2/-
dedicated section Investors where information sought
per equity share of face value of `2/- each on February
by shareholders is available. The Annual Report of the
10, 2017, to shareholders who were on the register of
Company, earnings, press releases, SEC filings and
members as on February 3, 2017, being the record date
quarterly reports of the Company, apart from the details
fixed for this purpose. The Board did not recommend a
about the Company, Board of Directors and Management,
final dividend and therefore total dividend for the year
are also available on the website in a user friendly and
ended March 31, 2017 will be `2/- per equity share of
downloadable form at www.wipro.com/investors/.
face value of `2/- each.
Annual Report: Annual Report containing audited
Unclaimed Dividends and Transfer to IEPF
standalone accounts, consolidated financial statements
together with Boards Report, Auditors Report and other Pursuant to section 124 of Companies Act, 2013, the
important information are circulated to Members entitled Company has transferred the unpaid or unclaimed final
thereto. dividend for the financial year 2008-09 on due date
to the Investor Education and Protection Fund (IEPF)
Other Disclosures/Filings: Further, our Form 20-F filed
administered by the Central Government.
with SEC containing detailed disclosures and along
with other disclosures including Press Releases etc. are Pursuant to the provisions of Investor Education and
available at www.wipro.com/investors/. Protection Fund (Uploading of information regarding
unpaid and unclaimed amounts lying with companies)
Communication of Results
Rules, 2012, the Company has uploaded the details
of unpaid and unclaimed dividends lying with the
Means of Number of times during
Company as on July 18, 2016 (date of last Annual General
Communications 2016-17
Meeting) on the website of the Company (www.wipro.
Earnings Calls 4 com/investors), as also on the website of the Ministry of
Publication of results 4 Corporate Affairs.
Analysts meet - After completion of seven years, no claims shall lie
against the said Fund or against the Company for the
Financial Calendar
amounts of Dividend so transferred nor shall any payment
The financial year of the Company starts from on the 1st be made in respect of such claims under the Companies
day of April and ends on 31st day of March of next year. Act, 1956. The Companies Act, 2013 provides for claiming
Our tentative calendar for declaration of results for the such dividends from the Central Government.
financial year 2017-18 is as given below:
Pursuant to the provisions of section 124(6) of the
Quarter Ending Release of Results Companies Act, 2013 and Investor Education and
Protection Fund Authority (Accounting, Audit, Transfer
For the Quarter ending Third week of July, 2017 and Refund) Rules, 2016 (as amended from time to
June 30, 2017 time), equity shares in respect of which dividend has
For the Quarter and half Fourth week of October, 2017 not been claimed for the financial year 2008-09 will be
year ending September transferred to the IEPF Authority in accordance with the
30, 2017 aforesaid rules.
For the Quarter and Third week of January, 2018 Listing on Stock Exchanges, Stock Codes, International
nine months ending Securities Identification Number (ISIN) and Cusip Number
December 31, 2017 for ADRs
For the year ending Third week of April, 2018
Your Companys shares are listed in the following exchanges
March 31, 2018
as on March 31, 2017 and the stock codes are:
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126
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Month April May June July August September October November December January February March
Volume traded NSE 33,059,942 25,698,511 27,951,298 34,396,041 38,166,384 39,856,651 30,248,119 35,682,020 19,931,126 22,372,827 20,721,851 28,076,754
Price in NSE during the month (in ` per share)
High 601.25 550.15 563.7 573.95 557.7 484.2 499.2 465.25 474.45 484.75 489.75 515.95
Date 20-Apr-16 30-May-16 23-Jun-16 13-Jul-16 1-Aug-16 27-Sep-16 21-Oct-16 30-Nov-16 30-Dec-16 16-Jan-17 27-Feb-17 30-Mar-17
Volume traded NSE 4,693,918 1,069,996 671,251 1,057,197 2,273,195 1,852,179 1,990,718 2,172,696 521,181 605,125 1,411,538 2,679,436
Low 549.55 533.1 535.1 537.75 478.8 472.2 461.7 437.15 453.35 458 455.65 484.5
Date 8-Apr-16 6-May-16 6-Jun-16 22-Jul-16 29-Aug-16 29-Sep-16 27-Oct-16 18-Nov-16 7-Dec-16 31-Jan-17 2-Feb-17 9-Mar-17
Volume traded NSE 940,527 1,288,204 1,932,039 1,374,380 5,095,626 4,940,828 1,883,031 1,080,583 589,671 2,742,827 1,532,200 704,895
S&P CNX Nifty Index during each month
High 7,979.90 8,178.50 8,287.75 8,666.30 8,786.20 8,952.50 8,769.15 8,626.25 8,261.75 8,641.25 8,939.50 9,173.75
Low 7,546.45 7,706.55 8,088.60 8,323.20 8,544.85 8,591.25 8,520.40 7,929.10 7,908.25 8,179.50 8,716.40 8,897.55
Wipro Price Movement vis-as-vis Previous Month High/Low (%)
High % 5.48% -8.50% 2.46% 1.82% -2.83% -13.18% 3.10% -6.80% 1.98% 2.17% 1.03% 5.35%
Low % 4.99% -2.99% 0.38% 0.50% -10.96% -1.38% -2.22% -5.32% 3.71% 1.03% -0.51% 6.33%
S&P CNX Nifty Index Movement vis a vis
High % 2.60% 2.49% 1.34% 4.57% 1.38% 1.89% -2.05% -1.63% -4.23% 4.59% 3.45% 2.62%
Low % 7.27% 2.12% 4.96% 2.90% 2.66% 0.54% -0.82% -6.94% -0.26% 3.43% 6.56% 2.08%
Performance of Wipro equity share relative to the SENSEX and NYSE Composite Index during the period April 1, 2016
to March 31, 2017 is given in the following chart:
120
110
100
90
80
70
1-Nov-2016
1-Apr-2016
1-July-2016
1-August-2016
1-June-2016
1-Sept-2016
1-Jan-2017
1-Feb-2017
1-Mar-2017
1-May-2016
1-Oct-2016
1-Dec-2016
Computershare Private Limited, Hyderabad. Shareholders can also send their correspondence to the
Company with respect to their shares, dividend, request
Share Transfer System
for annual reports and shareholder grievance. The contact
The turnaround time for completion of transfer of shares in details are provided below:
physical form is generally less than 7(seven) days from the
date of receipt, if the documents are clear in all respects. Mr. M Sanaulla Khan Ph: +91 80 28440011
Company Secretary (Extn 226185)
Address for Correspondence Wipro Limited Fax: +91 080 28440258
The address of our Registrar and Share Transfer Agents Doddakannelli, Email: sanaulla.khan@wipro.com
is given below: Sarjapur Road
Bangalore - 560 035
Karvy Computershare Private Limited Mr. G Kothandaraman Ph: +91 80 28440011
Unit: Wipro Limited Head - Secretarial & (Extn 226183)
Karvy Selenium Tower B, Plot 31-32, Gachibowli, Compliance Fax: +91 080 28440258
Financial District, Nanakramguda, Hyderabad 500 032. Wipro Limited Email:
Phone: 040-23420818 Doddakannelli, kothandaraman.gopal@wipro.com
Fax: 040 23420814 Sarjapur Road
Bangalore - 560035
Contact Person:
Mr. B. Srinivas - E-mail id: srinivas.b@karvy.com Analysts can reach our Investor Relations Team for any
queries and clarification Financial/Investor Relations
Mr. Rajesh Mishra - E-mail id: rajesh.mishra@karvy.com related matters:
Shareholders Grievance can also be sent through email to
Mr. Aravind V S Ph: +91 80 28440011
the following designated email id: einward.ris@karvy.com.
Vice President and (Extn: 226186)
Overseas Depository for ADSs J.P. Morgan Chase Bank N.A. Corporate Treasurer Fax: +91 80 28440258
Wipro Limited Email:
60, Wall Street New York, NY 10260 aravind.viswanathan@wipro.com
Doddkannelli,
Tel: 001 212 648 3208
Sarjapur Road
Fax: 001 212 648 5576
Bangalore - 560 035
Indian Custodian for ADSs Mr. Pavan N Rao Ph: +91 80 28440011
India Sub Custody Senior Manager- (Extn: 226143)
J.P. Morgan Chase Bank N.A. J.P. Morgan Towers, Investor Relations Fax: +91 80 28440258
1st Floor, off C.S.T. Road, Kalina, Wipro Limited Email: pavan.rao@wipro.com
Santacruz (East), Mumbai - 400 098 Doddkannelli,
Tel: 022-61573484 Sarjapur Road
Fax: 022-61573910 Bangalore - 560 035
Mr. Abhishek Kumar Ph: +1 9788264700
Web-Based Query Redressal System
Jain Fax: +1 8005724852
Members may utilize this facility extended by the Registrar Senior Manager, Email:
& Transfer Agents for redressal of their queries. 2 Tower Center, abhishekkumar.jain@wipro.com
Boulevard,
Please visit http://karisma.karvy.com and click on 22nd Floor, East
investors option for query registration through free Brunswick,
identity registration to log on. Investor can submit the NJ-08816, USA
query in the QUERIES option provided on the website,
Plant Locations
which would give the grievance registration number. For
accessing the status/response to your query, please use The Company has various offices in India and abroad.
the same number at the option VIEW REPLY after 24 Details of these locations are available on our website
hours. The investors can continue to put additional queries www.wipro.com.
relating to the case till they are satisfied.
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129
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Sd/-
V. Sreedharan
Bengaluru Partner
April 15, 2017 F.C.S.2347; C.P. No. 833
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130
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Name of the Statute Nature of the dues Amount Period to which Forum where dispute is
unpaid March the amount relates pending
31, 2017* (Assessment year)
(` in million)
The Income Tax Act, Income Tax and interest 11,127 2001-02 to 2004-05 Supreme Court
1961 demanded
The Income Tax Act, Income Tax and interest 20,841 2005-06 to 2007-08 High Court **
1961 demanded
The Income Tax Act, Income Tax and interest 3,101 2007-08 to 2011- Income Tax Appellate
1961 demanded 12**** Tribunal
The Income Tax Act, Income Tax and interest 4,124 2013-14 Dispute Resolution Panel
1961 demanded ***
The Income Tax Act, Income Tax and interest 4 2012-13 Appellate Authorities
1961 demanded
State Sales Tax/VAT Sales tax, interest and penalty 2,772 1986-87 to 2015-16 Appellate Authorities
and CST demanded
State Sales Tax/VAT Sales tax demanded 254 1998-99 to 2009-10 Appellate Tribunal
and CST
State Sales Tax/VAT Sales tax and penalty demanded 51 1999-00 to 2007-08 High court/ Supreme
and CST court
The Central Excise Act, Excise duty demanded 66 1995-96 to 2013-14 Appellate Authorities
1944
The Central Excise Act, Excise duty demanded 177 2004-05 to 2010-11 CESTAT
1944
The Central Excise Act, Excise duty demanded 1 2007-08 High Court/ Supreme
1944 Court
The Customs Act, 1962 Customs duty, interest and 296 1995-96 to 2009-10 Appellate Authorities
penalty demanded
The Customs Act, 1962 Customs duty and penalty 7 1991-92 to 2011-12 CESTAT
demanded
The Customs Act, 1962 Customs duty demanded 44 1990-91 to 1998-99 High court/ Supreme
court
The Finance Act, 1994 Service tax demanded 109 2004-05 to 2010-11 Appellate Authorities
The Finance Act, 1994 Service tax demanded 386 2001-02 to 2011-12 CESTAT
* The amounts paid under protest have been reduced from the amounts demanded in arriving at the aforesaid
disclosure.
** No subsequent demand has been raised as the matter is pending with High Court based on appeals filed by the
department.
*** Pending directions from Dispute Resolution Panel, the Company has not received any demand for payment.
**** The assessment pertaining to AY 2008-09 was disposed off by the ITAT during January 2017. The Company has
filed an appeal against the order of the ITAT with the High Court during the month of April 2017.
viii. In our opinion and according to the information according to the information and explanations given
and explanations given to us, the Company has not to us, the term loans taken by the Company have been
defaulted in repayment of its dues to the banks and applied for the purposes for which they were raised.
financial institutions. The Company did not have
x. According to the information and explanations given
any outstanding dues to Government or debenture
to us, no fraud by the Company or on the Company by
holders during the year.
its officers or employees has been noticed or reported
ix. The Company did not raise any moneys by way of during the year.
initial public offer or further public offer (including
xi. According to the information and explanations give
debt instruments) during the year. In our opinion and
to us and based on our examination of the records
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134
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of the Company, the Company has paid/provided for xv. According to the information and explanations given
managerial remuneration in accordance with the to us and based on our examination of the records
requisite approvals mandated by the provisions of of the Company, the Company has not entered into
Section 197 read with Schedule V to the Act. non-cash transactions with directors or persons
connected with him.
xii. In our opinion and according to the information and
explanations given to us, the Company is not a Nidhi xvi. According to the information and explanations given
company. to us, the Company is not required to be registered
under Section 45 IA of the Reserve Bank of India Act,
xiii. According to the information and explanations given
1934.
to us and based on our examination of the records of
the Company, transactions with the related parties
for B S R & Co. LLP
are in compliance with Sections 177 and 188 of the
Chartered Accountants
Act where applicable and details of such transactions
Firm registration number: 101248W/W-100022
have been disclosed in the financial statements as
required by the applicable accounting standards.
Jamil Khatri
xiv. According to the information and explanations give to
Partner
us and based on our examination of the records of the
Membership Number: 102527
Company, the Company has not made any preferential
allotment or private placement of shares or fully or Bangalore
partly convertible debentures during the year. June 2, 2017
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135
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Balance Sheet
(` in millions, except share and per share data, unless otherwise stated)
Notes As at As at As at
March 31, 2017 March 31, 2016 April 01, 2015
ASSETS
Non-current assets
Property, plant and equipment 5 ` 37,555 ` 36,418 ` 34,805
Capital work-in-progress 5 6,941 3,251 3,612
Goodwill 6 3,882 3,882 3,882
Other intangible assets 6 2,185 375 499
Financial assets
Investments 7 59,994 57,811 56,260
Derivative assets 18 106 260 736
Trade receivables 8 3,998 1,362 2,443
Loans to subsidiaries 33 - 1,958 1,848
Other financial assets 10 3,545 4,067 4,221
Deferred tax assets 19 2,352 4,254 3,022
Non-current tax assets 19 12,008 11,751 11,409
Other non-current assets 12 11,732 11,257 9,425
Total non-current assets 144,298 136,646 132,162
Current assets
Inventories 11 3,559 5,262 4,794
Financial assets
Investments 7 291,467 204,195 93,827
Trade receivables 8 81,299 83,980 77,797
Cash and cash equivalents 9 35,166 84,088 149,425
Derivative assets 18 9,747 5,549 4,889
Unbilled revenues 32,845 37,100 33,387
Loans to subsidiaries 33 1,917 - -
Other financial assets 10 6,151 7,658 11,730
Current tax assets 19 7,701 6,519 5,497
Other current assets 12 17,419 18,252 16,838
Total current assets 487,271 452,603 398,184
TOTAL ASSETS ` 631,569 ` 589,249 ` 530,346
EQUITY
Share capital 13 ` 4,861 ` 4,941 ` 4,937
Other equity 462,195 407,316 361,448
Total Equity 467,056 412,257 366,385
LIABILITIES
Non-current liabilities
Financial liabilities
Borrowings 14 11,463 11,465 10,632
Derivative liabilities 18 2 118 71
Other financial liabilities 15 77 55 -
Provisions 16 3,733 3,991 2,736
Deferred tax liabilities 19 1,391 722 567
Non-current tax liability 19 9,099 8,231 6,695
Other non-current liabilities 17 349 291 210
Total non-current liabilities 26,114 24,873 20,911
Current liabilities
Financial liabilities
Borrowings 14 50,186 55,495 49,704
Trade payables 38,186 43,623 40,191
Derivative liabilities 18 2,708 2,340 753
Other financial liabilities 15 17,628 18,174 18,548
Unearned revenues 11,506 14,222 14,021
Provisions 16 6,269 6,426 6,357
Current tax liabilities 19 6,792 6,363 7,360
Other current liabilities 17 5,124 5,476 6,116
Total current liabilities 138,399 152,119 143,050
TOTAL EQUITY AND LIABILITIES ` 631,569 ` 589,249 ` 530,346
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 B S R & Co. LLP Azim H Premji N Vaghul Abidali Neemuchwala
Chartered Accountants Chairman Director Chief Excecutive Officer
Firms Registration No: 101248W/W- 100022 & Managing Director & Excecutive Director
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 B S R & Co. LLP Azim H Premji N Vaghul Abidali Neemuchwala
Chartered Accountants Chairman Director Chief Excecutive Officer
Firms Registration No: 101248W/W- 100022 & Managing Director & Excecutive Director
(` in millions, except share and per share data, unless otherwise stated)
Balance as at April 1, 2016 Changes during the year (1) Balance as of March 31, 2017
4,941 (80) 4,861
Highlights
Balance as at April 1, 2015 Changes during the year Balance as of March 31, 2016
4,937 4 4,941
(1)
Refer Note 29
B. OTHER EQUITY
Letters
Share Special
application Share economic Foreign
money Capital based zone re- Other Cash flow currency
pending Share Capital Redemption Retained payment investment Comprehensive hedging translation Total other
Particulars allotment Premium Reserve Reserve Earnings reserve reserve income Reserve reserve equity
Balance as at April 1, 2016 `^ ` 14,254 ` 1,139 ` 14 ` 385,672 ` 2,229 `- ` 216 ` 1,910 ` 1,882 ` 407,316
Total Comprehensive income for the
period
Profit for the period - - - - 81,617 - - - - - 81,617
Board
under Ind AS
re-investment reserve
Transferred from Special economic zone - - - - 13,521 - (13,521) - - - -
re-investment reserve on utilization
Issue of shares by controlled trust on - - - - 384 (384) - - - - -
exercise of options (1)
Compensation cost related to employee - - - - 13 1,791 - - - - 1,804
share based payment transactions
- (14,173) - 80 62,492 1,326 - 1,158 3,996 - 54,879
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CG Report
Balance as at March 31, 2017 `^ ` 81 ` 1,139 ` 94 ` 448,164 ` 3,555 `- ` 1,374 ` 5,906 ` 1,882 ` 462,195
under Ind AS
index page
Consolidated
(1)
1,101,217 shares have been issued by the controlled trust on exercise of options during the year ended March 31, 2017.
under IFRS
Financials
138
Consolidated
STATEMENT OF CHANGES IN EQUITY
Defining new
(` in millions, except share and per share data, unless otherwise stated)
Share Special
application Share economic Foreign
money Capital based zone re- Other Cash flow currency
pending Share Capital Redemption Retained payment investment Comprehensive hedging translation Total other
Particulars allotment Premium Reserve Reserve Earnings reserve reserve income Reserve reserve equity
Balance as at April 1, 2015 `^ ` 13,643 ` 1,139 ` 14 ` 339,280 ` 1,312 `- ` 628 ` 3,550 ` 1,882 ` 361,448
Highlights
options
Cash dividend paid (including dividend - - - - (35,672) - - - - - (35,672)
tax thereon)
Transferred to Special economic zone - - - - (1,342) - 1,342 - - - -
re-investment reserve
Transferred from Special economic zone - - - - 1,342 - (1,342) - - - -
re-investment reserve on utilization
Compensation cost related to employee - - - - 59 1,528 - - - - 1,587
Board
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 B S R & Co. LLP Azim H Premji N Vaghul Abidali Neemuchwala
MD & A
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Standalone
under Ind AS
CG Report
under Ind AS
index page
Consolidated
under IFRS
Financials
139
Consolidated
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Wipro Limited (Wipro or Company), is a leading These financial statements have been prepared on
India based provider of IT Services, including a historical cost convention and on an accrual basis,
Business Process Services (BPS), globally. except for the following material items which have
been measured at fair value as required by relevant
Wipro is a public limited company incorporated and Ind AS:-
domiciled in India. The address of its registered
office is Wipro Limited, Doddakannelli, Sarjapur a) Derivative financial instruments;
Road, Bangalore 560 035, Karnataka, India. b) Financial instruments classified as fair value
Wipro has its primary listing with Bombay Stock
through other comprehensive income or fair
Exchange and National Stock Exchange in India. The
value through profit or loss; and
Companys American Depository Shares representing
equity shares are also listed on the New York c) The defined benefit asset/(liability) is recognised
Stock Exchange. These financial statements were as the present value of defined benefit obligation
authorized for issue by the Board of Directors on June less fair value of plan assets.
02, 2017.
(iii) Use of estimates and judgment
2. Basis of preparation of financial statements
The preparation of the financial statements in
(i) Statement of compliance and basis of preparation conformity with Ind AS requires management to
make judgments, estimates and assumptions that
These financial statements are prepared in affect the application of accounting policies and
accordance with Indian Accounting Standards (Ind the reported amounts of assets, liabilities, income
AS), the provisions of the Companies Act, 2013 and expenses. Actual results may differ from those
(the Companies Act), as applicable and guidelines estimates.
issued by the Securities and Exchange Board of India
(SEBI). The Ind AS are prescribed under Section 133 Estimates and underlying assumptions are reviewed
of the Act read with Rule 3 of the Companies (Indian on an ongoing basis. Revisions to accounting estimates
Accounting Standards) Rules, 2015 and Companies are recognized in the period in which the estimates
(Indian Accounting Standards) Amendment Rules, are revised and in any future periods affected. In
2016. particular, information about significant areas of
estimation, uncertainty and critical judgments in
Up to the year ended March 31, 2016, the Company applying accounting policies that have the most
prepared its financial statements in accordance significant effect on the amounts recognized in the
with the requirements of the Indian GAAP (Previous financial statements are included in the following
GAAP), which included Standards notified under the notes:
Companies (Accounting Standards) Rules, 2006. The
date of transition to Ind AS is April 1, 2015. a) Revenue recognition: The Company uses the
percentage of completion method using the
Accounting policies have been applied consistently to
input (cost expended) method to measure
all periods presented in these financial statements.
progress towards completion in respect of
The financial statements correspond to the fixed price contracts. Percentage of completion
classification provisions contained in Ind AS 1, method accounting relies on estimates of
Presentation of Financial Statements. For clarity, total expected contract revenue and costs.
various items are aggregated in the statements of This method is followed when reasonably
profit and loss and balance sheet. These items are dependable estimates of the revenues and costs
disaggregated separately in the notes to the financial applicable to various elements of the contract
statements, where applicable. can be made. Key factors that are reviewed in
All amounts included in the financial statements estimating the future costs to complete include
are reported in millions of Indian rupees (in millions) estimates of future labor costs and productivity
except share and per share data, unless otherwise efficiencies. Because the financial reporting of
stated. Due to rounding off, the numbers presented these contracts depends on estimates that are
throughout the document may not add up precisely to assessed continually during the term of these
the totals and percentages may not precisely reflect contracts, recognized revenue and profit are
the absolute figures. subject to revisions as the contract progresses
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142
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to completion. When estimates indicate that a Additionally, estimating the acquisition date
loss will be incurred, the loss is provided for in fair value of the identifiable assets acquired
the period in which the loss becomes probable. (including useful life estimates), liabilities
Volume discounts are recorded as a reduction acquired and contingent consideration
of revenue. When the amount of discount varies assumed involves management judgment.
with the levels of revenue, volume discount is These measurements are based on information
recorded based on estimate of future revenue available at the acquisition date and are based
from the customer. on expectations and assumptions that have
been deemed reasonable by management.
b) Impairment testing: Investments in subsidiaries,
Changes in these judgments, estimates, and
goodwill and intangible assets are tested for
assumptions can materially affect the results
impairment at least annually and when events
of operations.
occur or changes in circumstances indicate
that the recoverable amount of the asset or f) Defined benefit plans and compensated
cash generating units to which these pertain absences: The cost of the defined benefit plans,
is less than its carrying value. The recoverable compensated absences and the present value
amount of cash generating units is higher of the defined benefit obligation are based on
of value-in-use and fair value less cost to actuarial valuation using the projected unit
dispose. The calculation of value in use of a credit method. An actuarial valuation involves
cash generating unit involves use of significant making various assumptions that may differ
estimates and assumptions which includes from actual developments in the future. These
turnover and earnings multiples, growth rates include the determination of the discount rate,
and net margins used to calculate projected future salary increases and mortality rates. Due
future cash flows, risk-adjusted discount rate, to the complexities involved in the valuation
future economic and market conditions. and its long-term nature, a defined benefit
obligation is highly sensitive to changes in these
c) Income taxes: The major tax jurisdictions for
assumptions. All assumptions are reviewed at
the Company are India and the United States
each reporting date.
of America. Significant judgments are involved
in determining the provision for income taxes g) Expected credit losses on financial assets: The
including judgment on whether tax positions are impairment provisions of financial assets are
probable of being sustained in tax assessments. based on assumptions about risk of default
A tax assessment can involve complex issues, and expected timing of collection. The Company
which can only be resolved over extended time uses judgment in making these assumptions
periods. and selecting the inputs to the impairment
calculation, based on the Companys past
d) Deferred taxes: Deferred tax is recorded on
history, customers creditworthiness, existing
temporary differences between the tax bases
market conditions as well as forward looking
of assets and liabilities and their carrying
estimates at the end of each reporting period.
amounts, at the rates that have been enacted
or substantively enacted at the reporting date. h) Measurement of fair value of non-marketable
The ultimate realization of deferred tax assets equity investments: These instruments are
is dependent upon the generation of future initially recorded at cost and subsequently
taxable profits during the periods in which measured at fair value. Fair value of investments
those temporary differences and tax loss carry- is determined using the market and income
forwards become deductible. The Company approaches. The market approach includes the
considers the expected reversal of deferred tax use of financial metrics and ratios of comparable
liabilities and projected future taxable income companies, such as revenue, earnings,
in making this assessment. The amount of comparable performance multiples, recent
the deferred tax assets considered realizable, financial rounds and the level of marketability
however, could be reduced in the near term if of the investments. The selection of comparable
estimates of future taxable income during the companies requires management judgment
carry-forward period are reduced. and is based on a number of factors, including
comparable company sizes, growth rates, and
e) Business combination: In accounting for
development stages. The income approach
business combinations, judgment is required
includes the use of discounted cash flow model,
in identifying whether an identifiable intangible
which requires significant estimates regarding
asset is to be recorded separately from goodwill.
the investees revenue, costs, and discount
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rates based on the risk profile of comparable trade payables, eligible current and non-current
companies. Estimates of revenue and costs liabilities.
are developed using available historical and
Non derivative financial instruments are recognized
forecast data.
initially at fair value. Financial assets are derecognized
i) Other estimates: The share based compensation when substantial risks and rewards of ownership of
expense is determined based on the Companys the financial asset have been transferred. In cases
estimate of equity instruments that will where substantial risks and rewards of ownership
eventually vest. Fair valuation of derivative of the financial assets are neither transferred nor
hedging instruments designated as cash flow retained, financial assets are derecognized only
hedges involves significant estimates relating when the Company has not retained control over the
to the occurrence of forecast transaction financial asset.
in cash flow hedging reserve till the period in the shareholder meeting.
the hedge was effective remains in cash flow
b) Capital Reserve
hedging reserve until the forecasted transaction
occurs. The cumulative gain or loss previously Capital reserve amounting to` 1,139 (March 31, 2016
recognized in the cash flow hedging reserve is and April 1, 2015: ` 1,139, respectively) is not freely
transferred to the statement of profit and loss available for distribution.
upon the occurrence of the related forecasted c) Capital Redemption Reserve
transaction. If the forecasted transaction is
no longer expected to occur, such cumulative Capital redemption reserve amounting ` 94 (March
balance is immediately recognized in the 31, 2016 and April 1, 2015: ` 14, respectively) is not
statement of profit and loss. freely available for distribution.
A final dividend, including tax thereon, on equity acquisition is measured as the fair value of the assets
shares is recorded as a liability on the date of transferred, liabilities incurred or assumed and equity
approval by the shareholders. An interim dividend, instruments issued at the date of exchange by the
including tax thereon, is recorded as a liability on the Company. Identifiable assets acquired and liabilities
date of declaration by the board of directors. and contingent liabilities assumed in a business
combination are measured initially at fair value at
(vi) Property, plant and equipment
the date of acquisition. Transaction costs incurred in
a) Recognition and measurement connection with a business acquisition are expensed
as incurred.
Property, plant and equipment are measured at cost
less accumulated depreciation and impairment The cost of an acquisition also includes the fair value
losses, if any. Cost includes expenditures directly of any contingent consideration measured as at the
attributable to the acquisition of the asset. General date of acquisition. Any subsequent changes to the
and specific borrowing costs directly attributable to fair value of contingent consideration classified
the construction of a qualifying asset are capitalized as liabilities, other than measurement period
as part of the cost. adjustments, are recognized in the statement of profit
and loss.
b) Depreciation
b) Goodwill
The Company depreciates property, plant and
equipment over the estimated useful life on a The excess of the cost of an acquisition over the
straight-line basis from the date the assets are Companys share in the fair value of the acquirees
available for use. Assets acquired under finance identifiable assets, liabilities and contingent
lease and leasehold improvements are amortized liabilities is recognized as goodwill. If the excess is
over the shorter of estimated useful life of the asset negative, a bargain purchase gain is recognized in
or the related lease term. Term licenses are amortized equity as capital reserve.
over their respective contract term. Freehold land is
c) Intangible assets
not depreciated. The estimated useful life of assets
are reviewed and where appropriate are adjusted, Intangible assets acquired separately are measured
annually. The estimated useful lives of assets are as at cost of acquisition. Intangible assets acquired
follows: in a business combination are measured at fair
value as at the date of acquisition. Following initial
Category Useful life recognition, intangible assets are carried at cost less
Buildings 28 to 40 years accumulated amortization and impairment losses, if
Plant and machinery 5 to 21 years any.
Computer equipment and 2 to 7 years The amortization of an intangible asset with a finite
software useful life reflects the manner in which the economic
Furniture, fixtures and equipment 3 to 10 years benefit is expected to be generated.
Vehicles 4 to 5 years The estimated useful life of amortizable intangibles
When parts of an item of property, plant and equipment are reviewed and where appropriate are adjusted,
have different useful lives, they are accounted for as annually. The estimated useful lives of the amortizable
separate items (major components) of property, plant intangible assets for the current and comparative
and equipment. Subsequent expenditure relating to periods are as follows:
property, plant and equipment is capitalized only Category Useful life
when it is probable that future economic benefits Customer related intangibles 5 to 10 years
associated with these will flow to the Company and Marketing related intangibles 3 to 10 years
the cost of the item can be measured reliably.
(viii) Leases
The cost of property, plant and equipment not
available for use as at each reporting date is The determination of whether an arrangement is, or
disclosed under capital work- in-progress. contains, a lease is based on the substance of the
arrangement at the inception date. The arrangement
(vii) Business combination, Goodwill and Intangible is, or contains a lease if, fulfillment of the arrangement
assets is dependent on the use of a specific asset or assets
a) Business combination or the arrangement conveys a right to use the asset
or assets, even if that right is not explicitly specified
Business combinations are accounted for using in an arrangement.
the purchase (acquisition) method. The cost of an
a) Arrangements where the Company is the lessee
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Leases of property, plant and equipment, where the which takes in to the account historical credit
Company assumes substantially all the risks and loss experience adjusted for forward looking
rewards of ownership are classified as finance leases. information. For other financial assets, expected
Finance leases are capitalized at lower of the fair credit loss is measured at the amount equal to
value of the leased property and the present value twelve months expected credit loss unless there
of the minimum lease payments. Lease payments has been a significant increase in credit risk
are apportioned between the finance charge and the from initial recognition, in which case those are
outstanding liability. The finance charge is allocated measured at lifetime expected credit loss. Refer
to periods during the lease term at a constant note 2 (iii) (g) for further information.
periodic rate of interest on the remaining balance of
the liability. B) Non - financial assets
Leases where the lessor retains substantially all The Company assesses long-lived assets such
the risks and rewards of ownership are classified as as property, plant, equipment and acquired
operating leases. Payments made under operating intangible assets for impairment whenever
leases are recognized in the statement of profit and events or changes in circumstances indicate
loss on a straight-line basis over the lease term. that the carrying amount of an asset or group
of assets may not be recoverable. If any such
b) Arrangements where the Company is the lessor
indication exists, the Company estimates the
In certain arrangements, the Company recognizes recoverable amount of the asset or group of
revenue from the sale of products given under assets. The recoverable amount of an asset
finance leases. The Company records gross or cash generating unit is the higher of its fair
finance receivables, unearned income and the value less cost of disposal (FVLCD) and its
estimated residual value of the leased equipment value-in-use (VIU). The VIU of long-lived assets
on consummation of such leases. Unearned income is calculated using projected future cash flows.
represents the excess of the gross finance lease FVLCD of a cash generating unit is computed
receivable plus the estimated residual value over using turnover and earnings multiples. If
the sales price of the equipment. The Company the recoverable amount of the asset or the
recognizes unearned income as finance income over recoverable amount of the cash generating
the lease term using the effective interest method. unit to which the asset belongs is less than its
(ix) Inventories carrying amount, the carrying amount is reduced
to its recoverable amount. The reduction is
Inventories are valued at lower of cost and net treated as an impairment loss and is recognized
realizable value, including necessary provision for in the statement of profit and loss. If at the
obsolescence. Cost is determined using the weighted reporting date, there is an indication that a
average method. previously assessed impairment loss no longer
(x) Impairment exists, the recoverable amount is reassessed and
the impairment losses previously recognized are
A) Financial assets reversed such that the asset is recognized at its
The Company applies the expected credit loss recoverable amount but not exceeding written
model for recognizing impairment loss on down value which would have been reported if
financial assets measured at amortised cost, the impairment losses had not been recognized
debt instruments at FVTOCI, lease receivables, initially.
trade receivables and other financial assets. Goodwill is tested for impairment at least
Expected credit loss is the difference between annually at the same time and when events
the contractual cash flows and the cash flows occur or changes in circumstances indicate
that the entity expects to receive discounted that the recoverable amount of the cash
using effective interest rate. generating unit is less than its carrying value.
Loss allowances for trade receivables and lease The goodwill impairment test is performed at
receivables are measured at an amount equal the level of cash-generating unit or groups of
to lifetime expected credit losses. Lifetime cash-generating units which represent the
expected credit losses are the expected credit lowest level at which goodwill is monitored for
losses that result from all possible default internal management purposes. An impairment
events over the expected life of a financial in respect of goodwill is not reversed.
instrument Lifetime expected credit loss (xi) Employee benefits
is computed based on a provision matrix
a) Post-employment and pension plans
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The Company participates in various employee In accordance with the Payment of Gratuity
benefit plans. Pensions and other post-employment Act, 1972, applicable for Indian companies, the
benefits are classified as either defined contribution Company provides for a lump sum payment to
plans or defined benefit plans. Under a defined eligible employees, at retirement or termination
contribution plan, the Companys only obligation is to of employment based on the last drawn salary
pay a fixed amount with no obligation to pay further and years of employment with the Company.
contributions if the fund does not hold sufficient The gratuity fund is managed by the third party
assets to pay all employee benefits. The related
funds. The Companys obligation in respect of the
actuarial and investment risks fall on the employee.
gratuity plan, which is a defined benefit plan, is
The expenditure for defined contribution plans is
recognized as an expense during the period when the provided for based on actuarial valuation using
employee provides service. Under a defined benefit the projected unit credit method. The Company
plan, it is the Companys obligation to provide agreed recognizes actuarial gains and losses in other
benefits to the employees. The related actuarial and comprehensive income, net of taxes.
investment risks fall on the Company. The present b) Termination benefits
value of the defined benefit obligations is calculated
by an independent actuary using the projected unit Termination benefits are expensed when the
credit method. Company can no longer withdraw the offer of those
All actuarial gains or losses are immediately benefits.
recognized in other comprehensive income, net of c) Short-term benefits
taxes and permanently excluded from profit or loss.
Further, the profit or loss will no longer include an Short-term employee benefit obligations are
expected return on plan assets. Instead net interest measured on an undiscounted basis and are recorded
recognized in profit or loss is calculated by applying as expense as the related service is provided. A
the discount rate used to measure the defined liability is recognized for the amount expected to
benefit obligation to the net defined benefit liability be paid under short-term cash bonus or profit-
or asset. The actual return on the plan assets above sharing plans, if the Company has a present legal
or below the discount rate is recognized as part of re- or constructive obligation to pay this amount as a
measurement of net defined liability or asset through result of past service provided by the employee and
other comprehensive income, net of taxes. the obligation can be estimated reliably.
The Company has the following employee benefit d) Compensated absences
plans:
The employees of the Company are entitled to
A. Provident fund
compensated absences. The employees can carry
Employees receive benefits from a provident forward a portion of the unutilized accumulating
fund, which is a defined benefit plan. The compensated absences and utilize it in future
employer and employees each make periodic periods or receive cash at retirement or termination
contributions to the plan. A portion of the of employment. The Company records an obligation
contribution is made to the approved provident for compensated absences in the period in which the
fund trust managed by the Company while employee renders the services that increases this
the remainder of the contribution is made to entitlement. The Company measures the expected
the government administered pension fund. cost of compensated absences as the additional
The contributions to the trust managed by the amount that the Company expects to pay as a result
Company is accounted for as a defined benefit of the unused entitlement that has accumulated
plan as the Company is liable for any shortfall at the end of the reporting period. The Company
in the fund assets based on the government recognizes accumulated compensated absences
specified minimum rates of return.
based on actuarial valuation using the projected
B. Superannuation unit credit method. Non-accumulating compensated
absences are recognized in the period in which the
Superannuation plan, a defined contribution absences occur.
scheme is administered by third party fund
managers. The Company makes annual (xii) Share based payment transactions
contributions based on a specified percentage Selected employees of the Company receive
of each eligible employees salary. remuneration in the form of equity settled instruments,
C. Gratuity for rendering services over a defined vesting period.
Equity instruments granted are measured by
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The Company accrues the estimated cost of Deferred income tax is recognized using the balance
warranties at the time when the revenue is sheet approach. Deferred income tax assets and
recognized. The accruals are based on the liabilities are recognized for deductible and taxable
Companys historical experience of material temporary differences arising between the tax base
usage and service delivery costs. of assets and liabilities and their carrying amount
in financial statements, except when the deferred
Costs that relate directly to a contract and income tax arises from the initial recognition of
incurred in securing a contract are recognized as goodwill or an asset or liability in a transaction that
an asset and amortized over the contract term is not a business combination and affects neither
as reduction in revenue accounting nor taxable profits or loss at the time of
Contract expenses are recognised as expenses the transaction.
by reference to the stage of completion of Deferred income tax assets are recognized to the
contract activity at the end of the reporting extent it is probable that taxable profit will be
period. available against which the deductible temporary
(xv) Finance cost differences and the carry forward of unused tax
credits and unused tax losses can be utilized.
Finance cost comprise interest cost on borrowings,
gain or losses arising on re-measurement of financial Deferred income tax liabilities are recognized for
assets at FVTPL, gains/ (losses) on translation all taxable temporary differences except in respect
or settlement of foreign currency borrowings of taxable temporary differences associated
and changes in fair value and gains/ (losses) on with investments in subsidiaries, associates and
settlement of related derivative instruments. foreign branches where the timing of the reversal
Borrowing costs that are not directly attributable to of the temporary difference can be controlled and
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it is probable that the temporary difference will not 1 April 2015, and have not been applied in preparing
reverse in the foreseeable future. these financial statements. The amendments to
standards that could have potential impact on the
The carrying amount of deferred income tax assets is
financial statements of the Company are:
reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient Amendment to Ind AS 7:
taxable profit will be available to allow all or part of
In March 2017, the Ministry of Corporate Affairs
the deferred income tax asset to be utilized.
issued the Companies (Indian Accounting Standards)
Deferred income tax assets and liabilities are (Amendments) Rules, 2017, notifying amendments
measured at the tax rates that are expected to apply to Ind AS 7, Statement of cash flows. These
in the period when the asset is realized or the liability amendments are in accordance with the amendments
is settled, based on tax rates (and tax laws) that made by International Accounting Standards Board
have been enacted or substantively enacted at the (IASB) to IAS 7, Statement of cash flows in January
reporting date. 2016, requiring the entities to provide disclosures
that enable users of financial statements to evaluate
The Company offsets deferred income tax assets
changes in liabilities arising from financing activities,
and liabilities, where it has a legally enforceable
including both changes arising from cash flows
right to offset current tax assets against current
and non-cash changes, suggesting inclusion of a
tax liabilities, and they relate to taxes levied by the
reconciliation between the opening and closing
same taxation authority on either the same taxable
balances in the balance sheet for liabilities arising
entity, or on different taxable entities where there is
from financing activities, to meet the disclosure
an intention to settle the current tax liabilities and
requirement. The amendments are applicable to the
assets on a net basis or their tax assets and liabilities
Company for annual periods commencing on or after
will be realized simultaneously.
from April 1, 2017. The Company is assessing the
(xviii) Earnings per share disclosure requirements of the amendment and the
effect on its financial statements.
Basic earnings per share is computed using
the weighted average number of equity shares
outstanding during the period adjusted for treasury
shares held. Diluted earnings per share is computed
using the weighted-average number of equity and
dilutive equivalent shares outstanding during the
period, using the treasury stock method for options
and warrants, except where the results would be
anti-dilutive.
New accounting standards not yet adopted:
Certain amendments to accounting standards are
not yet effective for annual periods beginning after
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These financial statements are prepared in accordance with Ind AS. For years up to and including the year ended
March 31, 2016, the Company prepared its financial statements in accordance with Indian GAAP (i.e. Previous
GAAP).
Exemptions from retrospective application:
In preparation of the Ind AS financial statements, the Company has:
1. Elected to apply Ind AS 103, Business Combinations, retrospectively to past business combinations from
April 1, 2008.
2. Elected to adopt the Previous GAAP carrying value of Property, Plant and Equipment as deemed cost on date
of transition.
Accordingly, the Company has prepared financial statements which comply with Ind AS for periods ending on March
31, 2017, together with the comparative period data as at and for the year ended March 31, 2016. In preparing
these financial statements, the Companys opening balance sheet was prepared as at April 1, 2015, the Companys
date of transition to Ind AS.
Reconciliations between Previous GAAP and Ind AS
i. Effect of Ind AS adoption on equity as at March 31, 2016 and April 1, 2015:
As at As at
March 31, 2016 April 1, 2015 Notes
Equity as reported under Previous GAAP (1)
` 409,052 ` 346,216
Effect of transition to Ind AS
Dividend and tax on dividend 2,974 20,739 A
Provisions for expected credit loss (1,347) (1,186) B
Fair valuation of investments 2,135 1,338 C
Amortization of intangible assets (369) (303) D
Incremental deferred tax recognized, net (337) (475) H
Others 149 56
Equity under Ind AS (1) ` 412,257 ` 366,385
(1)
Includes share capital of ` 4,941 and ` 4,937 as at March 31, 2016 and April 1, 2015, respectively.
ii. Effect of Ind AS adoption on total comprehensive income for the year ended March 31, 2016
Year ended
March 31, 2016 Notes
Net profit under Previous GAAP ` 80,990
Effect of transition to Ind AS
Expected credit loss recognized (161) B
Change in fair valuation of investments 359 C
Depreciation, amortization and impairment charge (65) D
Employee benefits 1,011 E
Share based compensation expenses 108 F
Tax impact (net) (107) H
Others (130)
Profit for the year under Ind AS ` 82,005
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Year ended
March 31, 2016 Notes
Ind AS adjustments in other comprehensive income, net of tax :
Items that will not be reclassified subsequently to the statement of profit or loss:
Defined benefit plan actuarial gains/(losses) (1,010) E
Net change in fair value of financial instruments through OCI 25 C
Income tax relating to items that will not be reclassified to profit or loss 214 H
Items that will be reclassified subsequently to the statement of profit or loss:
Net change in fair value of financial instruments through OCI 393 C
Net change in fair value of forward contracts designated as cash flow hedges (1,900) G
Income tax relating to items that will be reclassified to profit and loss 226 H
Total other comprehensive income for the year, net of taxes under Ind AS ` (2,052)
Total comprehensive income for the year under Ind AS ` 79,953
Notes to equity and net profit reconciliation:
A) Proposed dividend: Under the Previous GAAP, dividend payable including dividend distribution tax was recorded as
a liability in the period to which it relates. Under Ind AS, dividend to holders of equity instruments is recognized as
a liability in the period in which the obligation to pay is established (post approval of shareholders in the Annual
General Meeting).
B) Expected credit loss: Under Previous GAAP, loss provision for trade receivables was created based on credit risk
assessment. Under Ind AS, these provisions are based on assessment of risk of default and timing of collection.
C) Fair valuation of investments: Under the Previous GAAP, current investments were measured at lower of cost or
fair value and long term investments were measured at cost less diminution in value which is other than temporary.
Under Ind AS, investments are measured at fair value and the mark-to-market gains/ losses are recognized either
through profit or loss (FVTPL) or through other comprehensive income (FVTOCI) based on the business model
test. Effect of Ind AS adoption on total comprehensive income represents the mark-to-market gains/ losses on
investment.
D) Amortization of intangible assets: Under Previous GAAP, in case of Business Combinations, assets and liabilities
were carried at carrying value in the books of the acquired entity. Under Ind AS, all assets and including intangibles
are recorded at fair value. Such intangibles are amortized over their useful life.
E) Employee benefits: Under the Previous GAAP, actuarial gains and losses on defined benefit obligations were
recognized in the statement of profit and loss. Under Ind AS, these are recognized in other comprehensive income.
This difference has resulted in an increase in net income for the year ended March 31, 2016. However, the same
does not result in difference in equity or total comprehensive income.
F) Share based compensation expenses: Under the Previous GAAP, the share based compensation cost was amortized
over the vesting period on a straight line basis. Under Ind AS, the share based compensation cost is determined
based on the Companys estimate of equity instruments that will eventually vest and amortized over the vesting
period on an accelerated basis. However, the same does not result in difference in equity.
G) Change in fair value of forward contracts designated as cash flow hedges: Under Ind AS, changes in the fair value
of derivative hedging instruments designated and effective as a cash flow hedge are recognized through other
comprehensive income.
H) Tax impact (net): Tax adjustments include deferred tax impact on account of differences between Previous GAAP
and Ind AS.
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Accumulated depreciation/
impairment:
As at April 1, 2015 - ` 3,212 ` 40,562 ` 6,636 ` 693 ` 2,607 ` 53,710
Depreciation - 644 7,115 605 2 248 8,614
Disposal / adjustments - (42) (982) (391) (220) (45) (1,680)
As at March 31, 2016 - ` 3,814 ` 46,695 ` 6,850 ` 475 ` 2,810 ` 60,644
Capital work-in-progress
As at April 1, 2015 ` 3,612
As at March 31, 2016 ` 3,251
As at March 31, 2017 ` 6,941
(1)
Interest capitalized during the year ended March 31, 2017, aggregated to ` 89 (2016: ` 73). The capitalization
rate used to determine the amount of borrowing cost capitalized for the year ended March 31, 2017 and 2016 are
2.4% and 4.8%, respectively.
(2)
Includes net carrying value of computer equipment and software amounting to ` 7,099 as at March 31, 2017
(March 31, 2016 6,687, April 1, 2015 ` 5,858)
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The carrying value of goodwill is ` 3,882 as at March 31, 2017, March 31, 2016 and April 1, 2015.
The Company is organized by two operating segments: IT Services and IT Products. Goodwill as at March 31, 2017,
March 31, 2016 and April 1, 2015 has been allocated to the IT Services operating segment.
During the year ended March 31, 2017, the company realigned its CGUs. This realignment did not have any impact
on allocation of goodwill to the CGUs. Below is the allocation of the goodwill to the CGUs:
As at
CGUs March 31, 2017 March 31, 2016 April 1, 2015
Energy, Natural Resources and Utilities (ENU) ` 3,782 ` 3,782 ` 3,782
Banking Financial Services and Insurance (BFSI) 100 100 100
Total ` 3,882 ` 3,882 ` 3,882
For the purpose of 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
Companys operating segment. Goodwill is tested for impairment at least annually in accordance with the Companys
procedure for determining the recoverable value of such assets.
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, no impairment was identified as of March 31, 2017 and 2016 as the recoverable value of the
CGUs exceeded the carrying value. Further, none of the CGUs tested for impairment as of March 31, 2017 and 2016
were at risk of impairment. An analysis of the calculations sensitivity to a change in the key parameters (revenue
growth, operating margin, discount rate and long-term growth rate) based on reasonably probable assumptions,
did not identify any probable scenarios where the CGUs recoverable amount would fall below its carrying amount.
Movement in intangible assets is given below
Customer Marketing
related related (1) Total
Gross carrying value:
As at April 1, 2015 ` 738 ` 89 ` 827
Additions - - -
Disposal/ adjustment - (11) (11)
As at March 31, 2016 ` 738 ` 78 ` 816
As at April 1, 2016 ` 738 ` 78 ` 816
Additions 2,175 - 2,175
Disposal/ adjustment - - -
As at March 31, 2017 ` 2,913 ` 78 ` 2,991
Accumulated amortization and impairment:
As at April 1, 2015 ` 302 ` 26 ` 328
Amortization 65 49 114
Disposal/ adjustment - (1) (1)
As at March 31, 2016 ` 367 ` 74 ` 441
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Customer Marketing
related related (1) Total
As at April 1, 2016 ` 367 ` 74 ` 441
Amortization 387 13 400
Disposal/ adjustment - (35) (35)
As at March 31, 2017 ` 754 ` 52 ` 806
Net carrying value
As at April 1, 2015 ` 436 ` 53 ` 499
As at March 31, 2016 ` 371 `4 ` 375
As at March 31, 2017 ` 2,159 ` 26 ` 2,185
(1)
Marketing related intangible assets include Technical Know-how, Patents and trademarks.
Addition during the year ended March 31, 2017 represents customer relationship assigned to the Company under
a contract with a Group company. The estimated remaining useful life of this is 6 years as of March 31, 2017.
7. Investments
Details of Investments
7.1 Details of investments in equity instruments other than subsidiaries (fully paid up) classified as FVTOCI
Particulars Number of units as at Balance as at
March 31, March 31, April 1, March 31, March 31, April 1,
2017 2016 2015 2017 2016 2015
Opera Solutions LLC 2,390,433 2,390,433 2,390,433 ` 3,232 ` 3,472 ` 3,434
Mycity Technology Limited 44,935 44,935 44,935 45 45 45
Wep Peripherals Limited 306,000 306,000 306,000 42 42 70
Wep Solutions Limited 1,836,000 1,836,000 1,836,000 97 40 25
Drivestream India Private Limited 267,600 267,600 - 19 19 -
Altizon Systems Private Limited 16,018 16,018 - 98 98 -
Total ` 3,533 ` 3,716 ` 3,574
7.2 Details of investments in commercial paper, certificate of deposits and bonds classified as FVTOCI
Balance as at
March 31, March 31, April 1,
Particulars of issuer 2017 2016 2015
National Highways Authority of India ` 18,361 ` 16,881 `-
L&T Infrastructure Finance Company Limited 12,089 13,317 5,012
Kotak Mahindra Prime Limited 11,955 9,988 4,068
IDFC Limited 11,570 1,587 -
HDB Financial Services Limited 11,479 2,940 -
LIC Housing Finance Limited 9,812 13,683 5,266
Housing Development Finance Corporation Limited 9,061 10,600 1,072
Tata Capital Financial Services Limited 7,293 6,693 -
Aditya Birla Finance Limited 7,085 6,313 2,177
L&T Housing Finance Limited 7,065 1,293 204
Sundaram Finance Limited 6,832 6,335 4,030
Mahindra & Mahindra Financial Services Limited 6,724 6,839 2,850
Shriram Transport Finance Limited 6,545 - -
Kotak Mahindra Investments Limited 6,358 2,495 993
Indian Railway Finance Corporation Limited 3,776 3,557 -
Bajaj Finance Limited 2,937 6,387 4,862
Tata Capital Housing Finance Limited 2,119 - 4,574
Gruh Finance Limited 1,024 - -
Power Finance Corporation Limited 958 1,070 374
Canfin Homes Limited 753 - -
L&T Floating Rate Bond 530 - -
NABARD 440 416 -
NTPC Limited 425 404 -
Rural Electrification Corporation Limited 423 404 -
Indian Government Bond - 3,535 3,384
IL&FS Financial Services Limited - 1,785 3,236
Allahabad Bank - 999 -
Andhra Bank - 999 -
Axis Bank Limited - 999 -
Syndicate Bank - 999 -
IDBI Bank Limited - 998 -
Tube Investments of India Limited - 160 161
Bharat Aluminium Company Limited - - 267
Export Import Bank of India - - 268
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Balance as at
March 31, March 31, April 1,
Particulars of issuer 2017 2016 2015
Mahindra Vehicle Manufacturers Limited - - 274
Total ` 145,614 ` 121,676 ` 43,072
7.3 Details of investment in unquoted equity and preference instruments of subsidiaries (fully paid up)
Number of Units as at Balances as at
Name of the Cur- Face March 31, March 31, April 1, March 31, March 31, April 1,
subsidiary rency Value 2017 2016 2015 2017 2016 2015
Equity Instrument
Wipro Trademarks
Holding Limited ` 10 93,250 93,250 93,250 ` 22 ` 22 ` 22
Wipro Travel Services
Limited ` 10 66,171 66,171 66,171 1 1 1
Wipro Holdings
(Mauritius) Limited USD 1 105,468,318 105,468,318 105,468,318 4,747 4,747 4,747
Wipro LLC USD 2,500 180,378 180,378 180,378 23,135 23,135 23,135
650 650 650 10 10 10
Wipro Japan KK JPY Note 1
16 16 16 1002 1002 1002
Wipro Shanghai
Limited (Note 2) 9 9 9
Wipro Cyprus Private
Limited EUR 1 163,611 163,611 163,611 18,903 18,903 18,903
Wipro Networks Pte
Limited SGD 1 28,126,108 28,126,108 28,126,108 1,339 1,339 1,339
Wipro Chengdu
Limited (Note 2) 24 24 24
Wipro Airport IT
Services Limited ` 10 3,700,000 3,700,000 3,700,000 37 37 37
Wipro Overseas IT
Services Pvt. Ltd. ` 10 50,000 50,000 - ^ ^ -
Appirio India Cloud
Solutions Private
Limited ` 10 800,000 - - 995 - -
Sub-total ` 50,224 ` 49,229 ` 49,229
Preference Shares
Wipro Cyprus Private
Limited (Redeemable) EUR 1 45,000 45,000 35,000 ` 5,055 ` 5,055 ` 3,483
Wipro Mauritius
(Redeemable) USD 1 25,000,000 25,000,000 - 1,604 1,604 -
Wipro Trademarks
Holding Limited
(9% cumulative
redeemable) ` 10 1,800 1,800 1,800 ^ ^ ^
Sub-total ` 6,659 ` 6,659 ` 3,483
Total ` 56,883 ` 55,888 ` 52,712
Note 1- As per the local laws of Japan, there is no concept of Face value of Shares.
Note 2 - As per the local laws of Peoples Republic of China, there is no concept of issuance of Share Certificate.
Hence the investment by the Company is considered as equity contribution.
^ Value less than ` 1
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8. Trade receivables
As at
March 31, 2017 March 31, 2016 April 1, 2015
Unsecured
Considered good ` 85,297 ` 85,342 ` 80,240
Doubtful 7,722 7,568 5,694
93,019 92,910 85,934
Less: Allowance for expected credit loss (7,722) (7,568) (5,694)
` 85,297 ` 85,342 ` 80,240
Included in the financial statement as follows:
Non-current 3,998 1,362 2,443
Current 81,299 83,980 77,797
The activities in the allowance for doubtful receivables is given below:
As at
March 31, 2017 March 31, 2016
Balance at the beginning of the year ` 7,568 ` 5,694
Addition during the year, net 1,825 1,938
Uncollectable receivables charged against allowance (1,671) (64)
Balance at the end of the year ` 7,722 ` 7,568
9. Cash and cash equivalents
Cash and cash equivalents as of March 31, 2017, March 31, 2016 and April 1, 2015 consists of the following:
As at
March 31, 2017 March 31, 2016 April 1, 2015
Balances with Banks
- Current accounts ` 15,969 ` 52,717 ` 41,903
- Unclaimed dividend 50 53 25
- Demand deposits (1) (2) 18,555 30,716 106,429
Cheques, drafts on hand 592 602 1,067
Cash on hand - - 1
` 35,166 ` 84,088 ` 149,425
(1)
hese deposits can be withdrawn by the Company at any time without prior notice and without any penalty on
T
the principal.
(2)
Demand deposits with banks include deposits in lien with banks amounting to ` Nil (March 31, 2016: ` 3;
April 1, 2015: Nil)
Cash and cash equivalents consists of the following for the purpose of the cash flow statement:
As at
March 31, 2017 March 31, 2016
Cash and cash equivalents ` 35,166 ` 84,088
Bank overdrafts (1,544) (657)
` 33,622 ` 83,431
Specified Bank Notes
As per the Notification G.S.R 308(E) dated March 31, 2017 issued by the Ministry of Corporate Affairs, the Company
needs to provide the details of Specified Bank Notes (SBN) held and transacted during the period from November
08, 2016 to December 30, 2016. The term Specified Bank Notes shall have the same meaning as provided in the
notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O.
3407(E), dated the 8th November, 2016. The Company did not have any cash in hand as on November 8, 2016 and
December 30, 2016.
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As at
March 31, 2017 March 31, 2016 April 1, 2015
Non-current
Advance to related parties ` 43 - -
Security deposits 1,497 1,530 1,383
Other deposits 49 273 206
Finance lease receivables 1,956 2,264 2,632
(secured by underlying assets given on lease)
` 3,545 ` 4,067 ` 4,221
Current
Considered good
Due from officers and employees ` 757 ` 1,673 ` 876
Finance lease receivables 1,560 1,824 3,190
(secured by underlying assets given on lease)
Interest receivable 2,147 2,486 3,758
Security deposits 173 251 1,620
Other deposits - - 253
Others 1,514 1,424 2,033
Considered doubtful 469 714 865
6,620 8,372 12,595
Less: Allowance for doubtful advances (469) (714) (865)
` 6,151 ` 7,658 ` 11,730
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.
Amounts receivable under finance leases:
The components of finance lease receivables are as follows:
Present value of minimum lease
Minimum lease payments as of
payments as of
March 31, March 31, April 1, March 31, March 31, April 1,
2017 2016 2015 2017 2016 2015
Not later than one year ` 1,737 ` 1,977 ` 3,397 ` 1,560 ` 1,824 ` 3,149
Later than one year but not
later than five years 1,979 2,384 2,835 1,898 2,206 2,558
Later than five years - - 73 - - 57
Un gu aran te e d re s i d u a l
values 62 62 62 58 58 58
Gross investment in lease 3,778 4,423 6,367 3,516 4,088 5,822
Less: Unearned finance
income (262) (335) (545) - - -
Present value of minimum
lease payment receivable ` 3,516 ` 4,088 ` 5,822 ` 3,516 ` 4,088 ` 5,822
Included in the financial
statements as follows:
- Non-current finance lease 1,956 2,264 2,632
receivables
- C urrent finance lease 1,560 1,824 3,190
receivables
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11. Inventories
As at
March 31, 2017 March 31, 2016 April 1, 2015
Raw materials - - 2
Work-in-progress - - 2
Finished goods [including goods in transit - ` 2 (March 31,
5 8 8
2016 : ` 2, April 1, 2015 : ` 8)]
Stock-in-trade 2,746 4,383 3,850
Stores and spares 808 871 932
` 3,559 ` 5,262 ` 4,794
12. Other assets
As at
March 31, 2017 March 31, 2016 April 1, 2015
Non-current
Capital advances ` 1,573 ` 2,388 ` 1,483
Prepaid expenses including rentals for lease hold land 6,984 5,062 3,497
Deferred contract costs 3,175 3,807 4,445
` 11,732 ` 11,257 ` 9,425
Current
Prepaid expenses ` 8,583 ` 9,683 ` 7,276
Due from officers and employees 1,384 1,899 2,388
Advance to suppliers 1,169 1,377 2,089
Deferred contract costs 4,270 3,720 3,610
Balance with excise, customs and other authorities 2,013 1,573 1,475
` 17,419 ` 18,252 ` 16,838
13. Share Capital
As at
March 31, 2017 March 31, 2016 April 1. 2015
Authorised Capital
2,917,500,000 (2016: 2,917,500,000, 2015: 2,917,500,000) ` 5,835 ` 5,835 ` 5,835
equity shares [Par value of ` 2 per share]
25,000,000 (2016: 25,000,000, 2015: 25,000,000) 10.25% 250 250 250
redeemable cumulative preference shares [Par value of
` 10 per share]
150,000 (2016: 150,000, 2015: 150,000) 10% Optionally 15 15 15
convertible cumulative preference shares [Par value of
` 100 per share]
` 6,100 ` 6,100 ` 6,100
Issued, subscribed and fully paid-up capital
2,430,900,565 (2016: 2,470,713,290, 2015: 2,469,043,038)
equity shares of ` 2 each [refer note (i) below] ` 4,861 ` 4,941 ` 4,937
Terms / Rights attached to equity shares
The Company has only one class of equity shares having a par value of ` 2 per share. Each holder of equity shares
is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed
by the Board of Directors is subject to shareholders approval in the ensuing Annual General Meeting.
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Following is the summary of per share dividends recognised as distributions to equity shareholders:
For the year ended March 31,
2017 2016
Interim dividend `2 `5
Final dividend - `1
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 and equity share capital:
As at March 31, 2017 As at March 31, 2016 As at April 1, 2015
No of shares ` million No of shares ` million No of shares ` million
Opening number of equity
shares / American Depository
Receipts (ADRs) outstanding 2,470,713,290 4,941 2,469,043,038 4,937 2,466,317,273 4,932
Equity shares/American
Depository Receipts (ADRs)
issued pursuance to
Employee Stock Option Plan 187,275 ^ 1,670,252 4 2,725,765 5
Buyback of Equity shares/
American Depository
Receipts (ADRs) (Refer Note
29) (40,000,000) (80) - - - -
Closing number of equity
shares / ADRs outstanding 2,430,900,565 4,861 2,470,713,290 4,941 2,469,043,038 4,937
^ Value is less than ` 1
(ii) Details of shareholders having more than 5% of the total equity shares of the Company:
Sl. Name of the Shareholder As at March 31, 2017 As at March 31, 2016 As at April 1, 2015
No. No of shares % held No of shares % held No of shares % held
1 Mr. Azim Hasham Premji Partner 370,956,000 15.26 370,956,000 15.01 370,956,000 15.02
representing Hasham Traders
2 Mr. Azim Hasham Premji Partner 452,906,791 18.63 452,906,791 18.33 452,906,791 18.34
representing Prazim Traders
3 Mr. Azim Hasham Premji Partner 451,619,790 18.58 451,619,790 18.28 451,619,790 18.29
representing Zash Traders
4 Azim Premji Trust 399,065,641 16.42 429,714,120 17.39 429,714,120 17.40
(iii) Other details of Equity Shares for a period of five years immediately preceding March 31, 2017:
As at
March 31, 2017 March 31, 2016 April 1, 2015
Aggregate number of share allotted as fully paid up pursuant
to contract(s) without payment being received in cash
- 195,717 841,585
(Allotted to the Wipro Inc Trust, the sole beneficiary of which
is Wipro LLC, a wholly owned subsidiary of the Company, in
consideration of acquisition of inter-company investments)
Aggregate number of shares allotted as fully paid bonus
shares - - 979,119,256
Aggregate number of shares bought back (Refer Note 29) 40,000,000 - -
(iv) Shares reserved for issue under option
For details of shares reserved for issue under the employee stock option plan of the Company, refer note 31.
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14. Borrowings
As at
March 31, 2017 March 31, 2016 April 1, 2015
Non-current borrowings
Secured
Long term maturities of finance lease obligations (1) ` 1,161 ` 1,201 ` 1,143
Unsecured
External commercial borrowings (ECB) 9,728 9,938 9,375
Term loans (2) 574 326 114
Total ` 11,463 ` 11,465 ` 10,632
Current borrowings
Unsecured
Cash credit ` 1,544 ` 657 ` 227
Borrowings from banks 48,642 54,838 49,477
Total ` 50,186 ` 55,495 ` 49,704
(1)
urrent obligation under financial lease amounting to ` 1,108 (March 31, 2016 and April 1, 2015: ` 836 and ` 586
C
respectively) is classified under Other current financial liabilities. Refer note 32.
(2)
urrent maturities of term loans amounting to ` 342 (March 31, 2016 and April 1, 2015: ` 333 and ` 104 respectively)
C
is classified under Other current financial liabilities.
Short-term loans and borrowings
As at March 31, As at March As at April
2017 31, 2016 1, 2015
Indian Rupee Interest rate Interest rate Indian Rupee Indian Rupee
Unsecured cash credit ` 1,544 Monthly/ currency 0.9% - 1.1% ` 657 ` 227
Libor + Spread
Unsecured borrowings ` 48,642 Monthly Libor + 0.93% - 1.58% ` 54,838 ` 49,477
from banks Spread
` 50,186 ` 55,495 ` 49,704
The principal source of Short-term borrowings from banks as of March 31, 2017 primarily consists of lines of credit
of approximately ` 204 (2016: ` 10,399, 2015: ` 2,700), U.S. Dollar (U.S. $) 1,386 Million (2016: U.S. $ 1,184 Million,
2015: U.S. $ 1,069 Million), United Kingdom Pound sterling (GBP) 20 million, Australian Dollar (AUD) 13 million,
Canadian Dollar (CAD) 4 million and EUR 1 million from bankers for working capital requirements and other short
term needs. As of March 31, 2017, the Company has unutilized lines of credit aggregating U.S.$ 632 Million (2016:
353, 2015: U.S. $ 279 Million), United Kingdom Pound sterling (GBP) 5 million, Australian Dollar (AUD) 13 million,
Canadian Dollar (CAD) 4 million and EUR 1 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. Significant
portion of these facilities bear floating rates of interest, referenced to LIBOR and a spread, determined based on
market conditions.
The Company has non-fund based revolving credit facilities in INR and U.S. $ equivalent to ` 44,136, ` 36,523 and
` 34,880 as of March 31, 2017, March 31, 2016 and April 1, 2015 respectively, towards operational requirements
that can be used for the issuance of letters of credit and bank guarantees. As of March 31, 2017, March 31, 2016
and April 1, 2015, an amount of ` 26,761, ` 15,449 and ` 16,796 respectively, was unutilized out of these non-fund
based facilities.
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As at
March 31, 2017 March 31, 2016 April 1, 2015
Non-current
Others Deposits ` 77 ` 55 -
Total ` 77 ` 55 -
Current
Salary Payable ` 15,904 ` 16,510 ` 16,968
Current maturities of long-term debt 342 333 104
Current maturities of finance lease obligations (Refer note 1,108 836 586
32)
Interest accrued but not due on borrowings 93 126 404
Unpaid dividends 50 53 25
Balances due to related parties (Refer note 33) 91 196 340
Others 40 120 121
Total ` 17,628 ` 18,174 ` 18,548
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16. Provisions
As at
March 31, 2017 March 31, 2016 April 1, 2015
Non-current
Provision for employee benefits ` 3,729 ` 3,977 ` 2,731
Others - Warranty Provision 4 14 5
Total ` 3,733 ` 3,991 ` 2,736
Current
Provision for employee benefits ` 5,601 ` 5,734 ` 5,650
Others
Provision for warranty 307 336 333
Provision Other taxes 361 356 374
Total ` 6,269 ` 6,426 ` 6,357
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. A summary of activity for provision for warranty and
other provisions is as follows:
Year ended March 31, 2017 Year ended March 31, 2016
Provision for Others Provision for Others
warranty taxes Total warranty taxes Total
Balance at the beginning of the year ` 350 ` 356 ` 706 ` 338 ` 374 ` 712
Additional provision during the year 381 11 392 272 - 272
Provision used during the year (420) (6) (426) (260) (18) (278)
Balance at the end of the year ` 311 ` 361 ` 672 ` 350 ` 356 ` 706
Current 307 361 668 336 356 692
Non-current 4 - 4 14 - 14
17. Other liabilities
As at
March 31, 2017 March 31, 2016 April 1, 2015
Non-current
Others ` 349 ` 291 ` 210
Total ` 349 ` 291 ` 210
Current
Statutory liabilities `2,668 `3,443 `3,417
Advances from customers 1,843 1,880 1,989
Others 613 153 710
Total ` 5,124 ` 5,476 ` 6,116
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The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring
basis:
As at March 31, 2017
Total Fair value measurements at
reporting date using
Particulars Level 1 Level 2 Level 3
Assets
Derivative instruments:
Cash flow hedges ` 7,307 `- ` 7,307 `-
Others 2,546 - 2,120 426
Investments:
Investment in liquid and short-term mutual funds 104,675 104,675 - -
Other investments Debentures 569 - 569 -
Investment in equity instruments Other than 3,533 - - 3,533
subsidiaries
Commercial paper, Certificate of deposits and
bonds 145,614 - 145,614 -
Liabilities
Derivative instruments:
Cash flow hedges (55) - (55) -
Others (2,655) - (2,655) -
As at April 1, 2015
Total Fair value measurements at
reporting date using
Particulars Level 1 Level 2 Level 3
Assets
Derivative instruments
Cash flow hedges ` 4,237 `- ` 4,237 `-
Others 1,388 - 864 524
Investments:
Investment in liquid and short-term mutual funds 10,202 10,202 - -
Other investments Debentures 822 - 822 -
Investment in equity instruments Other than
subsidiaries 3,574 - - 3,574
Commercial paper, Certificate of deposits and
bonds 43,072 2,046 41,026 -
Liabilities
Derivative instruments
Cash flow hedges (80) - (80) -
Others (744) - (744) -
The following methods and assumptions were used to estimate the fair value of the level 2 financial instruments
included in the above table.
Derivative instruments (assets and liabilities): The Company enters into derivative financial instruments with
various counter-parties, primarily banks with investment grade credit ratings. Derivatives valued using valuation
techniques with market observable inputs are mainly interest rate swaps, foreign exchange forward contracts and
foreign exchange option contracts. The most frequently applied valuation techniques include forward pricing, swap
models and Black Scholes models (for option valuation), using present value calculations. The models incorporate
various inputs including the credit quality of counterparties, foreign exchange spot and forward rates, interest rate
curves and forward rate curves of the underlying. As at March 31, 2017, 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 paper, certificate of deposits and bonds: Fair valuation is derived based on the indicative
quotes of price and yields prevailing in the market as on the reporting date.
Details of assets and liabilities considered under Level 3 classification:
As at April 1, 2015
Item Valuation technique Significant unobservable Movement Increase Decrease
inputs by (`) (`)
Unquoted equity Discounted cash flow Long term growth rate 0.5% 44 (40)
investments model Discount rate 0.5% (85) 91
Market multiple Revenue multiple 0.5x 148 (152)
approach
Derivative assets Option pricing model Volatility of comparable 2.5% 32 (33)
companies
Time to liquidation event 1 year 63 (85)
Derivatives assets and liabilities:
The Company is exposed to foreign currency fluctuations on foreign currency assets / liabilities, forecasted cash
flows denominated in foreign currency and net investment in foreign operations. The Company follows established
risk management policies, including the use of derivatives to hedge foreign currency assets / liabilities, foreign
currency forecasted cash flows and net investment in foreign operations. The counter party in these derivative
instruments is a bank and the Company considers the risks of non-performance by the counterparty as not material.
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The following table presents the aggregate contracted principal amounts of the Companys derivative contracts
outstanding:
As at
March 31, 2017 March 31, 2016 April 1, 2015
Designated derivative instruments
Sell Forward contracts $ 886 $ 897 $ 790
280 248 198
228 271 220
AUD 129 AUD 139 AUD 83
SAR - SAR 19 SAR -
AED - AED 7 AED -
As at April 1, 2015
US $ Euro Pound Australian Canadian Other Total
Sterling Dollar Dollar currencies #
Trade receivables 27,709 5,285 8,156 1,376 211 7,674 50,411
Unbilled revenues 13,704 2,822 4,979 915 196 1,277 23,893
Cash and cash equivalents 38,452 970 740 255 26 1,988 42,431
Other assets 3,041 1,188 306 1,782 12 193 6,522
Borrowings (including current (58,750) - (318) (932) - (227) (60,227)
maturities of long-term debt
and finance lease obligations
included in other financial
liabilities)
Trade payables and other (24,640) (5,379) (4,707) (797) (119) (3,059) (38,701)
financial liabilities
Net assets / (liabilities) (484) 4,886 9,156 2,599 326 7,846 24,329
#
other currencies reflect currencies such as Singapore Dollars, CHF, etc.
As at March 31, 2017 and March 31, 2016, every 1% increase/decrease of the respective foreign currencies compared
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to functional currency of the Company would impact result from operating activities by approximately ` 21 and
` 356 respectively.
Interest rate risk
Interest rate risk primarily arises from floating rate borrowing, including various revolving and other lines of
credit. The Companys investments are primarily in short-term investments, which do not expose it to significant
interest rate risk. The Company manages its net exposure to interest rate risk relating to borrowings by entering
into interest rate swap agreements, which allows it to exchange periodic payments based on a notional amount
and agreed upon fixed and floating interest rates. Certain borrowings are also transacted at fixed interest rates. If
interest rates were to increase by 100 bps from March 31, 2017, additional net annual interest expense on floating
rate borrowing would amount to approximately ` 502.
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, 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 of
March 31, 2017 and March 31, 2016, respectively and revenues for the year ended March 31, 2017 and March 31,
2016, respectively. There is no significant concentration of credit risk.
Financial assets that are neither past due nor impaired
Cash and cash equivalents, unbilled revenues, investment in liquid mutual fund units, certificates of deposits
and interest bearing deposits with corporates are neither past due nor impaired. Cash and cash equivalents
with banks and interest-bearing deposits are placed with corporate, which have high credit-ratings assigned by
international and domestic credit-rating agencies. Certificates of deposit represent funds deposited with banks
or other financial institutions for a specified time period.
Financial assets that are past due but not impaired
There is no other class of financial assets that is past due but not impaired except for receivables of ` 7,722,
` 7,568 and ` 5,694 as of March 31, 2017, March 31, 2016 and April 1, 2015, respectively. Of the total receivables,
` 65,604, ` 67,831 and ` 63,562 as of March 31, 2017, March 31, 2016 and April 1, 2015, respectively, were neither
past due nor impaired. The Companys credit period generally ranges from 45-60 days from invoicing date. The
aging analysis of the receivables has been considered from the date the invoice falls due. The age wise break up
of receivables, net of allowances that are past due, is given below:
As at
March 31, 2017 March 31, 2016 April 1, 2015
Financial assets that are neither past due nor impaired ` 65,604 ` 67,831 ` 63,562
Financial assets that are past due but not impaired
Past due 0-30 days 4,957 4,135 5,438
Past due 31-60 days 2,180 2,380 3,179
Past due 61-90 days 2,802 2,003 2,346
Past due over 90 days 13,270 13,081 11,537
Total past due but not impaired ` 23,209 ` 21,599 ` 22,500
Total ` 88,813 ` 89,430 ` 86,062
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 into 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
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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 Companys 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 Companys net liquidity position through rolling forecasts on the basis
of expected cash flows. As of March 31, 2017, 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.
As at April 1, 2015
Contractual cash flows Carrying Less than 1-2 2-4 4-7 Total
value 1 year years years years
Borrowings (including current maturities of ` 61,026 ` 50,767 ` 854 ` 1,268 ` 9,389 ` 62,278
long-term debt and finance lease obligations
included in other financial liabilities)
Trade payables 40,191 40,191 - - - 40,191
Derivatives liabilities 824 753 39 22 10 824
Other financial liabilities ` 753 ` 753 - - - ` 753
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, 2017 March 31, 2016 April 1, 2015
Cash and cash equivalents ` 35,166 ` 84,088 ` 149,425
Investments 291,467 204,195 93,827
Borrowings (including current maturities of long-term debt
(63,099) (68,129) (61,026)
and finance lease obligations)
Loans to subsidiaries 1,917 - -
Net cash position ` 265,451 ` 220,154 ` 182,226
19. Income taxes
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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 realizability 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 realizable, however, could be reduced in the near term if the estimates of future
taxable income during the carry-forward period are reduced.
Pursuant to the changes in the Indian income tax laws, Minimum Alternate Tax (MAT) has been extended to
income in respect of which deduction is claimed under Section 10A, 10B and 10AA of the Income Tax Act, 1961;
consequently, 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 was required to pay MAT and
accordingly, a deferred tax asset of ` 1,469, ` 1,490 and ` 1,842 has been recognized in the balance sheet as of
March 31, 2017, March 31, 2016 and April 1, 2015 respectively, which can be carried forward for a period of ten
years from the year of recognition.
A substantial portion of the profits of the Companys 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 2030-31. 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 ` 9,109 and
` 10,212 for the year ended March 31, 2017 and 2016, 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, 2017 and 2016 was ` 3.75 and ` 4.16 respectively.
Deferred income tax liabilities are recognized for all taxable temporary differences except in respect of taxable
temporary differences associated with US branch 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.
20. Revenue from operations
Year ended
March 31, 2017 March 31, 2016
Sale of services ` 432,788 ` 420,378
Sale of products 23,608 26,430
` 456,396 ` 446,808
21. Other operating income
During the year ended March 31, 2017, the Company has concluded the sale of the EcoEnergy division for a
consideration of ` 4,670. Net gain from the sale, amounting to ` 4,082 has been recorded as other operating income.
22. Other income
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Year ended
March 31, 2017 March 31, 2016
Interest income ` 17,163 ` 20,529
Dividend income 311 66
Net gain on sale of investments 3,486 2,634
Unrealized gains/losses on financial instruments measured at fair value
through profit or loss 556 359
Foreign exchange gain/ (losses), net 4,184 3,518
` 25,700 ` 27,106
23. Cost of materials consumed
Year ended
March 31, 2017 March 31, 2016
Opening stock - `2
Add: Purchases - -
Less: Closing stock - -
- `2
24. Changes in inventories of finished goods, stock-in-trade and work-in-progress
Year ended
March 31, 2017 March 31, 2016
Opening stock
Finished products `8 `8
Traded goods 4,383 3,850
Work-in-progress - 2
4,391 3,860
Less: Closing stock
Finished products 5 8
Traded goods 2,746 4,383
Work-in-progress - -
2,751 4,391
Decrease/ (Increase) ` 1,640 ` (531)
25. Employee benefits expense
Year ended
March 31, 2017 March 31, 2016
Salaries and wages ` 211,575 ` 206,548
Contribution to provident and other funds 5,282 4,630
Share based payments to employees 1,687 1,493
` 218,544 ` 212,671
Defined benefit plan actuarial loss/(gains) recognized in other comprehensive income include:
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Year ended
March 31, 2017 March 31, 2016
Re-measurement of net defined benefit liability/(asset)
Return on plan assets excluding interest income ` (189) ` 30
Actuarial loss/ (gain) arising from financial assumptions 358 180
Actuarial loss/ (gain) arising from demographic assumptions (59) 2
Actuarial loss/ (gain) arising from experience adjustments (301) 798
` (191) ` 1,010
(b) Defined benefit plans Gratuity:
In accordance with the Payment of Gratuity Act, 1972, applicable for Indian companies, the Company provides
for a lump sum payment to eligible employees, at retirement or termination of employment based on the last
drawn salary and years of employment with the Company. The gratuity fund is managed by certain third party fund
managers. The Companys obligation in respect of the gratuity plan, which is a defined benefit plan, is provided for
based on actuarial valuation using the projected unit credit method. The Company recognizes actuarial gains and
losses immediately in other comprehensive income, net of taxes. Amount recognized in the statement of profit
and loss in respect of gratuity cost (defined benefit plan) is as follows:
Year ended
March 31, 2017 March 31, 2016
Current service cost ` 1,041 ` 909
Net interest on net defined benefit liability/(asset) 6 9
Net gratuity cost/(benefit) ` 1,047 ` 918
Actual return on plan assets ` 642 ` 312
Gratuity is applicable only to employees drawing a salary in Indian rupees and there are no other foreign defined
benefit gratuity plans.
The principal assumptions used for the purpose of actuarial valuation are as follows:
Year ended
March 31, 2017 March 31, 2016
Discount rate 6.90% 7.75%
Expected return on plan assets 6.90% 7.75%
Expected rate of salary increase 8.00% 8.00%
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 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 managements estimate, based on previous
years employee turnover of the Company.
Change in present value of defined benefit obligation is summarized below:
As at
March 31, 2017 March 31, 2016
Defined benefit obligation at the beginning of the year ` 6,080 ` 4,365
Current service cost 1,041 909
Past service cost - -
Interest on obligation 459 356
Benefits paid (722) (530)
Remeasurement loss/(gains)
Actuarial loss/(gain) arising from financial assumptions 358 180
Actuarial loss/(gain) arising from demographic assumptions (59) 2
Actuarial loss/(gain) arising from experience assumptions (302) 798
` 6,855 ` 6,080
Change in plan assets is summarized below:
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As at
March 31, 2017 March 31, 2016
Fair value of plan assets at the beginning of the year ` 5,996 ` 4,327
Expected return on plan assets 453 365
Employer contributions 186 1,887
Benefits paid (4) (530)
Re-measurement loss/(gains)
Return on plan assets excluding interest income 189 (53)
Fair value of plan assets at the end of the year ` 6,820 ` 5,996
As at
March 31, 2017 March 31, 2016 April 1, 2015
Fair value of plan assets ` 40,059 ` 36,019 ` 28,445
Present value of defined benefit obligation 40,059 36,019 28,445
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, 2017 March 31, 2016 April 1, 2015
Discount rate 6.90% 7.75% 7.95%
Average remaining tenure of investment portfolio 6 years 6 Years 6 Years
Guaranteed rate of return 8.65% 8.75% 8.75%
For the year ended March 31, 2017, the Company contributed ` 3,616 (2016: ` 3,164) towards provident fund.
26. Finance costs
Year ended
March 31, 2017 March 31, 2016
Interest expense ` 769 ` 906
Exchange fluctuations on foreign currency borrowings, net 3,152 4,593
(to the extent regarded as borrowing cost)
` 3,921 ` 5,499
27. Other expenses
Year ended
March 31, 2017 March 31, 2016
Sub-contracting / technical fees / third party application ` 74,614 ` 64,863
Travel 17,536 21,065
Facility expenses 12,509 11,399
Communication 3,463 3,098
Legal and professional fees 3,211 3,261
Rates, taxes and insurance 1,514 1,545
Advertisement and brand building 2,737 2,222
Provision for doubtful debts 1,825 1,939
Provision for diminution in value of investments 403 1,793
Auditors remuneration
Audit fees 37 40
For tax matters 1 1
For reimbursement of expenses 3 3
Miscellaneous expenses 5,003 3,788
` 122,856 ` 115,017
28. Earnings per equity share
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A reconciliation of profit for the year and equity shares used in the computation of basic and diluted earnings per
equity share is set out below:
Basic: Basic earnings per share is calculated by dividing the profit attributable to equity shareholders of the
Company by the weighted average number of equity shares outstanding during the year, excluding equity shares
purchased by the Company and held as treasury shares.
Year ended March 31,
2017 2016
Profit for the year ` 81,617 ` 82,005
Weighted average number of equity shares outstanding 2,428,540,505 2,456,559,400
Basic earnings per share ` 33.61 ` 33.38
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 Companys 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,
2017 2016
Profit for the year ` 81,617 ` 82,005
Weighted average number of equity shares outstanding 2,428,540,505 2,456,559,400
Effect of dilutive equivalent share options 7,133,064 5,130,508
Weighted average number of equity shares for diluted earnings per share 2,435,673,569 2,461,689,908
Diluted earnings per share ` 33.51 ` 33.31
29. Dividends and Buy back of equity shares
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.
During the year ended March 31, 2017, the Company has concluded the buyback of 40 million equity shares as
approved by the Board of Directors on April 20, 2016. This has resulted in a total cash outflow of ` 25,000. In line
with the requirement of the Companies Act 2013, an amount of ` 14,254 and ` 10,666 has been utilized from
the share premium account and retained earnings respectively. Further, a capital redemption reserves of ` 80
(representing the nominal value of the shares bought back) has been created as an apportionment from retained
earnings. Consequent to such buy back, share capital has been reduced by ` 80.
The cash dividends paid per equity share were ` 3 and ` 12 during the years ended March 31, 2017 and 2016,
respectively, including an interim dividend of ` 2 and ` 5 for the years ended March 31, 2017 and 2016.
The Board of Directors in their meeting held on April 25, 2017 approved issue of bonus shares in India, in the
proportion of 1:1, i.e. 1 (One) equity share of ` 2 each for every 1 (one) fully paid-up equity share held (including
ADS holders) as on the record date, subject to approval by the Members of the Company through postal ballot/
e-voting. The bonus issue, if approved, will not affect the ratio of ADSs to equity shares, such that each ADS after
the bonus issue will continue to represent one equity share of par value of ` 2 per share.
30. Additional capital disclosures
The key objective of the Companys capital management is to ensure that it maintains a stable capital structure with
the focus on total equity to uphold investor, creditor, and customer confidence and to ensure future development
of its business. The Company focused on keeping strong total equity base to ensure independence, security, as
well as a high financial flexibility for potential future borrowings, if required without impacting the risk profile of
the Company.
The Companys goal is to continue to be able to return excess liquidity to shareholders by continuing to distribute
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annual dividends in future years. The amount of future dividends/buy back of equity shares will be balanced with
efforts to continue to maintain an adequate liquidity status.
The capital structure as of March 31, 2016 and 2017 was as follows:
As at
% Change % Change
March 31, March 31, April 1, 2017-16 2016-15
2017 2016 2015
Total equity (A) ` 467,056 ` 412,257 ` 366,385 13.29% 12.52%
Current loans and borrowings 51,636 56,664 50,394
Non-current loans and borrowings 11,463 11,465 10,632
Total loans and borrowings (B) 63,099 68,129 61,026 (7.38%) 11.64%
As percentage of total equity 13.51% 16.53% 16.66%
Total capital (A)+(B) ` 530,155 ` 480,386 ` 427,411 10.36% 12.39%
Loans and borrowings represented 14%, 17% and 17% of total capital as of March 31, 2017, March 31, 2016, and
April 1, 2015 respectively. The Company is not subject to any externally imposed capital requirements.
31. Employee stock option
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 three to five years
from the date of grant. Upon vesting, the employees can acquire one equity share for every option. The maximum
contractual term for aforementioned stock option plans is generally 10 years.
The stock compensation cost is computed under the intrinsic value method and amortized on accelerated vesting
period. The intrinsic value on the date of grant approximates the fair value. For the year ended March 31, 2017,
the Company has recorded stock compensation expense of ` 1,687 (March 31, 2016: ` 1,493).
The compensation committee of the board evaluates the performance and other criteria of employees and approves
the grant of options. These options vest with employees over a specified period subject to fulfillment of certain
conditions. Upon vesting, employees are eligible to apply and secure allotment of Companys shares at a price
determined on the date of grant of options. The particulars of options granted under various plans are tabulated
below. (The numbers of shares in the table below are adjusted for any stock splits and bonus shares issues).
Wipro Equity Reward Trust (WERT)
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 Companys Board
Governance, Nomination and Compensation Committee recommends to WERT certain officers and key employees,
to whom WERT grants shares from its holdings at nominal price. Such shares are then held by the employees
subject to vesting conditions.
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:
Name of Plan Authorized Shares Range of
Exercise Prices
Wipro Employee Stock Option Plan 1999 (1999 Plan) 50,000,000 ` 171 490
Wipro Employee Stock Option Plan 2000 (2000 Plan) 280,303,030 ` 171 490
Stock Option Plan (2000 ADS Plan) 15,000,000 US $ 37
Wipro Restricted Stock Unit Plan (WRSUP 2004 plan) 22,424,242 ` 2
Wipro ADS Restricted Stock Unit Plan (WARSUP 2004 plan) 22,424,242 US$ 0.03
Wipro Employee Restricted Stock Unit Plan 2005 (WSRUP 2005 plan) 22,424,242 ` 2
Wipro Employee Restricted Stock Unit Plan 2007 (WSRUP 2007 plan) 18,686,869 ` 2
Wipro Equity Reward Trust Employee Stock Purchase Plan, 2013 14,829,824 ` 2
The activity in these stock option plans is summarized below:
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Stock option plans Range of Year ended March 31, 2017 Year ended March 31, 2016
Exercise Number Weight Average Number Weight Average
prices exercise price exercise price
Outstanding at the beginning of ` 480 489 20,181 ` 480.20 20,181 ` 480.20
the year `2 7,254,326 `2 6,332,219 `2
US $ 0.03 3,747,430 US $ 0.03 2,576,644 US $ 0.03
Granted ` 480 489 - `- - `-
`2 2,398,000 `2 2,870,400 `2
US $ 0.03 2,379,500 US $ 0.03 1,697,700 US $ 0.03
Exercised ` 480 489 - `- - `-
`2 (1,113,775) `2 (1,329,376) `2
US $ 0.03 (174,717) US $ 0.03 (340,876) US $ 0.03
Forfeited and lapsed ` 480 489 - `- - `-
`2 (586,468) `2 (618,917) `2
US $ 0.03 (663,430) US $ 0.03 (186,038) US $ 0.03
Outstanding at the end of the year ` 480 489 20,181 ` 480.20 20,181 ` 480.20
`2 7,952,083 `2 7,254,326 `2
US $ 0.03 5,288,783 US $ 0.03 3,747,430 US $ 0.03
Exercisable at the end of the year ` 480 489 20,181 ` 480.20 20,181 ` 480.20
`2 698,320 `2 1,204,405 `2
US $ 0.03 141,342 US $ 0.03 256,753 US $ 0.03
The following table summarizes information about outstanding stock options:
Finance leases:
Obligation under finance lease is secured by underlying assets leased. The legal title of these assets vests with
the lessors. These obligations are repayable in monthly, quarterly and yearly installments up to year ending March
31, 2021. The interest rate for these obligations ranges from 1.82% to 17.19%.
The following is a schedule of future minimum lease payments under finance leases, together with the present
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value of the future minimum lease payments as of March 31, 2017, March 31, 2016 and April 1, 2015:
Minimum lease payments as of Present value of minimum
lease payments as of
March 31, March 31, April 1, March 31, March 31, April 1,
2017 2016 2015 2017 2016 2015
Not later than one year ` 1,219 ` 960 ` 702 ` 1,108 ` 836 ` 586
Later than one year but not later than
five years 1,245 1,311 1,243 1,161 1,201 1,143
2,464 2,271 1,945 2,269 2,037 1,729
Less: future finance charges (195) (234) (216) - - -
Present value of minimum lease
payments ` 2,269 ` 2,037 ` 1,729 ` 2,269 ` 2,037 ` 1,729
Included in the balance sheet as
follows:
- Current maturities of obligation ` 1,108 ` 836 ` 586
under finance lease
- Long term maturities of finance ` 1,161 ` 1,201 ` 1,143
lease obligations
Operating leases:
The Company leases office and residential facilities under cancelable and non-cancelable operating lease
agreements that are renewable on a periodic basis at the option of both the lessor and the lessee. Rental payments
under such leases are ` 2,878, ` 2,905 and ` 2,682 during the years ended March 31, 2017, March 31, 2016 and
April 1, 2015.
Details of contractual payments under non-cancelable leases are given below:
As at
March 31, 2017 March 31, 2016 April 1, 2015
Not later than one year ` 2,243 ` 1,875 ` 1,488
Later than one year and not later than five years 5,801 4,407 2,985
Later than five years 2,175 1,561 837
Total ` 10,219 ` 7,843 ` 5,310
33. Related party relationships and transactions
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List of subsidiaries as of March 31, 2017 are provided in the table below:
The following are the significant related party transactions during the year ended March 31, 2017 and 2016:
Particulars Year ended March 31,
2017 2016
Sale of services
Wipro LLC ` 22,215 ` 15,383
Wipro Technologies South Africa (Proprietary) Limited 2,813 4,084
Wipro Networks PTE LTD 2,205 2,673
Purchase of services
Wipro Data Centre and Cloud Services, Inc. 3,389 NA
Wipro LLC 2,247 2,007
Wipro do Brasil Technologia Ltda 1,707 1,532
Wipro Technologies Gmbh 1,624 1,507
Wipro BPO Philippines Limited Inc 1,581 -
Wipro Technologies SRL 1,332 -
Infocrossing Inc 48 3,229
Asset purchased / capitalized
Wipro Enterprises (P) Limited 106 231
Dividend paid
Prazim Traders 1,359 5,435
Zash Traders 1,355 5,419
Azim Premji Trust 1,228 5,157
Hasham Traders 1,113 4,451
Commission paid
Wipro Japan KK 439 468
Wipro Technologies Gmbh 443 440
Rent paid
Wipro Holdings UK Limited 34 38
Wipro Enterprises (P) Limited - 15
Rental Income
Wipro Enterprises (P) Limited 38 35
Designit Denmark A/S 28 NA
Remuneration paid to key management personnel
Azim Premji 8 22
T K Kurien (1) 97 137
Abidali Z. Neemuchwala 136 120
Rishad Premji 17 22
Jatin Pravinchandra Dalal 45 38
M Sanualla Khan 12 9
Corporate guarantee commission
Wipro Gulf LLC 47 35
Wipro IT Services Inc. 45 23
Wipro Solutions Canada Ltd 43 38
Wipro LLC 40 38
Infocrossing Inc 32 43
Wipro Arabia Limited 18 15
(1)
r. T K Kurien, who was Executive Vice Chairman of the Company retired from the services of the Company and the
M
Board effective January 31, 2017. Compensation disclosed above is for the period from April 1, 2016 to January 31, 2017.
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Capital commitments:
As at March 31, 2017, March 31, 2016 and April 1, 2015, the Company had committed to spend approximately
` 11,340, ` 10,109 and ` 863 respectively, under agreements to purchase/contruct property and equipment. These
amounts are net of capital advances paid in respect of these purchases.
Contingent liabilities to the extent not provided for:
As at
March 31, 2017 March 31, 2016 April 1, 2015
Disputed demands for excise duty, customs duty, sales tax ` 2,585 ` 2,654 ` 2,560
and other matters
Performance and financial guarantees given by the banks 17,375 21,074 18,084
on behalf of the company
Guarantees given by the Company on behalf of subsidiaries 6,237 10,014 8,715
Contingencies and lawsuits:
The Companys Indian operations have been established as units in Special Economic Zone and Software Technology
Park Unit under plans formulated by the Government of India. As per the plan, the Companys India operations have
export obligations to the extent of net positive foreign exchange (i.e. foreign exchange inflow - foreign exchange
outflow should be positive) over a five year period. The consequence of not meeting this commitment in the future
would be a retroactive levy of import duties on certain hardware previously imported duty free. As at March 31,
2016, the Company believes that it has met all the commitments substantially required under the plan.
Tax demands:
The Company is subject to legal proceedings and claims (including tax assessment orders/ penalty notices) which
have arisen in the ordinary course of its business. Some of the claims involve complex issues and it is not possible
to make a reasonable estimate of the expected financial effect, if any, that will result from ultimate resolution of
such proceedings. However, the resolution of these legal proceedings is not likely to have a material and adverse
effect on the results of operations or the financial position of the Company. The significant of such matters are
discussed below.
In March 2004, the Company received a tax demand for year ended March 31, 2001 arising primarily on account of
denial of deduction under section 10A of the Income Tax Act, 1961 (Act) in respect of profit earned by the Companys
undertaking in Software Technology Park at Bangalore. The same issue was repeated in the successive assessments
for the years ended March 31, 2002 to March 31, 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 Honble High Court. The Honble 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 (SLP) before the Supreme Court of India for the year ended March 31, 2001 to March 31, 2004.
On similar issues for years up to March 31, 2000, the Honble High Court of Karnataka has upheld the claim of the
Company under section 10A of the Act. For the year ended March 31, 2009, the appeals are pending before Income
Tax Appellate Tribunal (Tribunal). For years ended March 31, 2010 and March 31, 2011, the Dispute Resolution
Panel (DRP) allowed the claim of the Company under section 10A of the Act. The Income tax authorities have filed
an appeal before the Tribunal.
The Company received the draft assessment order for the year ended March 31, 2012 in March 2016 with a proposed
demand of ` 4,241 (including interest of ` 1,376). Based on the DRPs direction, allowing majority of the issues in
favor of the Company, the assessing officer has passed the final order with Nil demand. However, on similar issue
for earlier years, the Income Tax authorities have appealed before the Tribunal.
For year ended March 31, 2013 the Company received the draft assessment order in December 2016 with a
proposed demand of ` 4,118 (including interest of ` 1,278), arising primarily on account of section 10AA issues
with respect to exclusion from Export Turnover. The Company has filed an objection before the DRP within the
prescribed timelines.
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Considering the facts and nature of disallowance and the order of the appellate authority / Honble High Court of
Karnataka upholding the claims of the Company for earlier years, the Company believes that the final outcome
of the above disputes should be in favor of the Company and there should not be any material adverse impact on
the financial statements.
The contingent liability in respect of disputed demands for excise duty, custom duty, sales tax and other matters
amounts to ` 2,585, ` 2,654 and ` 2,560 as of March 31, 2017, March 31, 2016 and April 1, 2015. However, the
resolution of these legal proceedings is not likely to have a material and adverse effect on the results of operations
or the financial position of the Company.
35.
The Company has amounts due to suppliers under The Micro, Small and Medium Enterprises Development Act,
2006, [MSMED Act] as at March 31, 2017, March 31, 2017 and April 1, 2015. The disclosure pursuant to the said
Act is as under:
As at
Particulars
March 31, 2017 March 31, 2016 April 1, 2015
Principal amount due to suppliers under MSMED Act ` 30 ` 10 ` 21
Interest accrued and remaining unpaid at the end of the year to 7 1 1
suppliers under MSMED Act
Total interest paid on all delayed payments during the year under 1 ^ -
MSMED Act
^Less than ` 1.
This information has been determined to the extent such parties have been identified on the basis of information available
with the Company.
36. Corporate Social Responsibility
a. Gross amount required to be spent by the Company during the year ` 1,764 (March 31, 2016: ` 1,560)
b. Amount spent during the year on:
The Company publishes this financial statement along with the consolidated financial statements. In accordance
with Ind AS 108, Operating Segments, the Company has disclosed the segment information in the consolidated
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 B S R & Co. LLP Azim H Premji N Vaghul Abidali Neemuchwala
Chartered Accountants Chairman Director Chief Excecutive Officer
Firms Registration No: 101248W/W- 100022 & Managing Director & Excecutive Director
Bengaluru Bengaluru
June 02, 2017 June 02, 2017
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Group as at March 31, 2017 and its consolidated financial Rule 11 of the Companies (Audit and Auditors)
performance including other comprehensive income, its Rules, 2014, in our opinion and to the best of our
consolidated cash flows and changes in equity for the information and according to the explanations
year then ended. given to us:
Report on Other Legal and Regulatory Requirements: i. The consolidated Ind AS financial
statements disclose the impact of pending
1. As required by Section 143(3) of the Act, we report,
litigations on the consolidated financial
to the extent applicable, that:
position of the Group refer Note 18 and
(a) We have sought and obtained all the information 36 to the consolidated Ind AS financial
and explanations which to the best of our statements;
knowledge and belief were necessary for
ii. Provision has been made in the consolidated
the purposes of our audit of the aforesaid
Ind AS financial statements as required
consolidated Ind AS financial statements;
under the applicable Law or accounting
(b) In our opinion, proper books of account as standards for material foreseeable losses,
required by law relating to the preparation of if any, on long-term contracts including
the aforesaid consolidated Ind AS financial derivative contracts. Refer Note 9 to the
statements have been kept so far as it appears consolidated Ind AS financial statements;
from our examination of those books;
iii. There has been no delay in transferring
(c) The consolidated balance sheet, the consolidated amounts, required to be transferred, to the
statement of profit and loss including other Investor Education and Protection Fund by
comprehensive income, the consolidated the Holding Company and its subsidiary
statement of cash flows and the statement of companies incorporated in India; and
changes in equity dealt with by this report are
iv. The requisite disclosures in the consolidated
in agreement with the relevant books of account
Ind AS financial statements, for holdings
maintained for the purpose of the preparation of
as well as dealings in Specified Bank
the consolidated Ind AS financial statements;
Notes as defined in the Notification S.O.
(d) In our opinion, the aforesaid consolidated 3407(E) dated November 8, 2016 of the
Ind AS financial statements comply with the Ministry of Finance, during the period
Accounting Standards specified under Section from November 8, 2016 to December 30
133 of the Act, read with relevant rules issued 2016, have been provided with respect
thereunder; to Holding Company and its subsidiary
companies incorporated in India. Based
(e) On the basis of the written representations
on audit procedures and reliance on the
received from the directors of the Holding
management representation we report
Company as on March 31, 2017 taken on record
that the disclosures are in accordance with
by the Board of Directors of the Holding Company
books of account maintained by the Holding
and the reports of the statutory auditors of its
Company and its subsidiary companies
subsidiary companies incorporated in India,
incorporated in India and as produced
none of the Directors of the Group companies
to us by the Management of the Holding
incorporated in India is disqualified as on March
Company Refer Note 14 to the consolidated
31, 2017 from being appointed as a Director of
Ind AS financial statements.
that company in terms of Section 164(2) of the
Act.
Repor t on Other Legal and Regulatory for B S R & Co. LLP
Requirements (continued) Chartered Accountants
Firm registration number: 101248W/W-100022
(f) With respect to the adequacy of the internal
financial controls over financial reporting of
the Group and the operating effectiveness of Jamil Khatri
such controls, refer to our separate report in Partner
Annexure A; and Membership Number: 102527
Annexure A to the Independent Auditors Report of even We believe that the audit evidence we have obtained
date on the Consolidated Ind AS Financial Statements of is sufficient and appropriate to provide a basis for our
Wipro Limited audit opinion on the Companys internal financial controls
Report on the Internal Financial Controls under Clause system over financial reporting.
(i) of Sub-Section 3 of Section 143 of the Companies Act, Meaning of Internal Financial Controls over Financial
2013 (the Act) Reporting
In conjunction with our audit of the consolidated Ind AS A companys internal financial control over financial
financial statements of the Company as of and for the reporting is a process designed to provide reasonable
year ended March 31, 2017, we have audited the internal assurance regarding the reliability of financial reporting
financial controls over financial reporting of Wipro Limited and the preparation of financial statements for external
(the Holding Company) and its subsidiary companies purposes in accordance with generally accepted
which are companies incorporated in India, as of that date. accounting principles. A companys internal financial
control over financial reporting includes those policies
Managements Responsibility for Internal Financial Controls and procedures that (1) pertain to the maintenance of
The respective Board of Directors of the Holding Company records that, in reasonable detail, accurately and fairly
and its subsidiary companies, which are companies reflect the transactions and dispositions of the assets
incorporated in India are responsible for establishing of the company; (2) provide reasonable assurance
and maintaining internal financial controls based on the that transactions are recorded as necessary to permit
internal control over financial reporting criteria established preparation of financial statements in accordance with
by the Company considering the essential components of generally accepted accounting principles, and that
internal control stated in the Guidance Note on Audit of receipts and expenditures of the company are being made
Internal Financial Controls over Financial Reporting issued only in accordance with authorizations of management
by the Institute of Chartered Accountants of India (ICAI). and directors of the company; and (3) provide reasonable
These responsibilities include the design, implementation assurance regarding prevention or timely detection
and maintenance of adequate internal financial controls of unauthorized acquisition, use, or disposition of the
that were operating effectively for ensuring the orderly companys assets that could have a material effect on the
and efficient conduct of its business, including adherence financial statements.
to Companys policies, the safeguarding of its assets, Inherent Limitations of Internal Financial Controls over
the prevention and detection of frauds and errors, the Financial Reporting
accuracy and completeness of the accounting records, and Because of the inherent limitations of internal financial
the timely preparation of reliable financial information, as controls over financial reporting, including the possibility
required under the Companies Act, 2013. of collusion or improper management override of controls,
Auditors Responsibility material misstatements due to error or fraud may occur
and not be detected. Also, projections of any evaluation
Our responsibility is to express an opinion on the of the internal financial controls over financial reporting
Companys internal financial controls over financial to future periods are subject to the risk that the internal
reporting based on our audit. We conducted our audit in financial control over financial reporting may become
accordance with the Guidance Note on Audit of Internal inadequate because of changes in conditions, or that the
Financial Controls over Financial Reporting (the Guidance degree of compliance with the policies or procedures may
Note) and the Standards on Auditing, issued by ICAI deteriorate.
and deemed to be prescribed under Section 143(10) of
Opinion
the Companies Act, 2013, to the extent applicable to an
audit of internal financial controls, both applicable to an In our opinion, the Holding Company and its Subsidiary
audit of Internal Financial Controls and, both issued by Companies, which are Companies incorporated in India
the ICAI. Those Standards and the Guidance Note require have, in all material respects, an adequate internal
that we comply with ethical requirements and plan and financial controls system over financial reporting and
perform the audit to obtain reasonable assurance about such internal financial controls over financial reporting
whether adequate internal financial controls over financial were operating effectively as at March 31, 2017, based
reporting was established and maintained and if such on the internal control over financial reporting criteria
controls operated effectively in all material respects. established by the Company considering the essential
components of internal control stated in the Guidance
Our audit involves performing procedures to obtain audit Note on Audit of Internal Financial Controls Over Financial
evidence about the adequacy of the internal financial Reporting issued by the ICAI.
controls system over financial reporting and their
operating effectiveness. Our audit of internal financial for B S R & Co. LLP
controls over financial reporting included obtaining an Chartered Accountants
understanding of internal financial controls over financial Firm registration number: 101248W/W-100022
reporting, assessing the risk that a material weakness
exists, and testing and evaluating the design and operating Jamil Khatri
effectiveness of internal control based on the assessed Partner
risk. The procedures selected depend on the auditors Membership Number: 102527
judgment, including the assessment of the risks of
material misstatement of the consolidated Ind AS financial Bangalore
statements, whether due to fraud or error. June 2, 2017
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(` in millions, except share and per share data, unless otherwise stated)
Balance as at April 1, 2016 Changes in equity share capital # Balance as at March 31, 2017
4,941 (80) 4,861
Highlights
Balance as at April 1, 2015 Changes in equity share capital Balance as at March 31, 2016
4,937 4 4,941
OTHER EQUITY
Equity
Letters
Total comprehensive income - - - - 84,931 - - (2,923) 3,996 1,180 87,184 179 87,363
for the year
Buyback of equity shares# - (14,254) - 80 (10,746) - - - - - (24,920) - (24,920)
Dividend (including dividend - - - - (8,734) - - - - - (8,734) - (8,734)
tax thereon)
Issue of shares by controlled - - - - 384 (384) - - - - - - -
trust on exercise of options
Issue of equity shares on - 81 - - - (81) - - - - - - -
exercise of options
MD & A
opened
under Ind AS
CG Report
under Ind AS
index page
Consolidated
Balance as at March 31, 2017 ^ ` 540 ` 1,139 ` 94 ` 487,065 ` 3,555 `- ` 12,146 ` 5,906 ` 1,396 ` 511,841 ` 2,391 ` 514,232
# Refer note 34.
under IFRS
Financials
198
Consolidated
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Defining new
(` in millions, except share and per share data, unless otherwise stated)
Equity
Share Special attributable
application Share economic Foreign to equity
money Capital based zone re- currency Cash flow Other com- holders Non-
pending Share Capital redemption Retained payment investment translation hedging prehensive of the controlling Total other
Particulars allotment premium reserve reserve earnings reserve reserves reserve reserve income Company interest equity
Highlights
Balance as at April 1, 2015 ^ ` 14,102 ` 1,139 ` 14 ` 367,573 ` 1,312 `- ` 10,399 ` 3,550 ` 624 ` 398,713 ` 1,634 ` 400,347
Profit for the year - - - - 89,079 - - - - - 89,079 492 89,571
Other comprehensive income - - - - - - - 4,670 (1,640) (408) 2,622 86 2,708
Total comprehensive income
for the year - - - - 89,079 - - 4,670 (1,640) (408) 91,701 578 92,279
Dividend (including dividend
tax thereon) - - - - (35,494) - - - - - (35,494) - (35,494)
Issue of equity shares on
Letters
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
MD & A
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Standalone
under Ind AS
CG Report
under Ind AS
index page
Consolidated
under IFRS
Financials
199
Consolidated
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applicable to various elements of the contract the deferred tax assets considered realizable,
can be made. Key factors that are reviewed in however, could be reduced in the near term if
estimating the future costs to complete include estimates of future taxable income during the
estimates of future labor costs and productivity carry-forward period are reduced.
efficiencies. Because the financial reporting of
e) Business combination: In accounting for
these contracts depends on estimates that are
business combinations, judgment is required
assessed continually during the term of these
in identifying whether an identifiable intangible
contracts, recognized revenue and profit are
asset is to be recorded separately from goodwill.
subject to revisions as the contract progresses
Additionally, estimating the acquisition date
to completion. When estimates indicate that a
fair value of the identifiable assets (including
loss will be incurred, the loss is provided for in
useful life estimates) and liability acquired,
the period in which the loss becomes probable.
and contingent consideration assumed involves
Volume discounts are recorded as a reduction
management judgment. These measurements
of revenue. When the amount of discount varies
are based on information available at the
with the levels of revenue, volume discount is
acquisition date and are based on expectations
recorded based on estimate of future revenue
and assumptions that have been deemed
from the customer.
reasonable by management. Changes in these
b) Impairment testing: Goodwill and intangible judgments, estimates, and assumptions can
assets recognized on business combination materially affect the results of operations.
are tested for impairment at least annually and
f) Defined benefit plans and compensated
when events occur or changes in circumstances
absences: The cost of the defined benefit plans,
indicate that the recoverable amount of the
compensated absences and the present value
asset or the cash generating unit to which
of the defined benefit obligations are based
these pertain is less than the carrying value.
on actuarial valuation using the projected unit
The recoverable amount of the asset or the cash
credit method. An actuarial valuation involves
generating units is higher of value-in-use and
making various assumptions that may differ
fair value less cost of disposal. The calculation
from actual developments in the future. These
of value in use of a cash generating unit involves
include the determination of the discount rate,
use of significant estimates and assumptions
future salary increases and mortality rates. Due
which includes turnover and earnings multiples,
to the complexities involved in the valuation
growth rates and net margins used to calculate
and its long-term nature, a defined benefit
projected future cash flows, risk-adjusted
obligation is highly sensitive to changes in these
discount rate, future economic and market
assumptions. All assumptions are reviewed at
conditions.
each reporting date.
c) Income taxes: The major tax jurisdictions for
g) Expected credit losses on financial assets:
the Company are India and the United States
On application of Ind AS 109, the impairment
of America. Significant judgments are involved
provisions of financial assets are based on
in determining the provision for income taxes
assumptions about risk of default and expected
including judgment on whether tax positions are
timing of collection. The Company uses judgment
probable of being sustained in tax assessments.
in making these assumptions and selecting the
A tax assessment can involve complex issues,
inputs to the impairment calculation, based
which can only be resolved over extended time
on the Companys past history of collections,
periods.
customers credit-worthiness, existing market
d) Deferred taxes: Deferred tax is recorded on conditions as well as forward looking estimates
temporary differences between the tax bases at the end of each reporting period.
of assets and liabilities and their carrying
h) Measurement of fair value of non-marketable
amounts, at the rates that have been enacted
equity investments: These instruments are
or substantively enacted at the reporting date.
initially recorded at cost and subsequently
The ultimate realization of deferred tax assets
measured at fair value. Fair value of investments
is dependent upon the generation of future
is determined using the market and income
taxable profits during the periods in which
approaches. The market approach includes the
those temporary differences and tax loss carry-
use of financial metrics and ratios of comparable
forwards become deductible. The Company
companies, such as revenue, earnings,
considers the expected reversal of deferred tax
comparable performance multiples, recent
liabilities and projected future taxable income
financial rounds and the level of marketability
in making this assessment. The amount of
of the investments. The selection of comparable
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is disposed off, the relevant amount recognized Subsequent to initial recognition, non-derivative
in FCTR is transferred to the statement of profit financial instruments are measured as described
and loss as part of the profit or loss on disposal. below:
Goodwill and fair value adjustments arising on
A. Cash and cash equivalents
the acquisition of a foreign operation are treated
as assets and liabilities of the foreign operation The Companys cash and cash equivalents
and translated at the exchange rate prevailing consist of cash on hand and in banks and
at the reporting date. demand deposits with banks, which can be
withdrawn at any time, without prior notice or
c) Others
penalty on the principal.
Foreign currency differences arising on the
For the purposes of the cash flow statement,
translation or settlement of a financial liability
cash and cash equivalents include cash on
designated as a hedge of a net investment in
hand, in banks and demand deposits with banks,
a foreign operation are recognized in other
net of outstanding bank overdrafts that are
comprehensive income and presented within
repayable on demand and are considered part
equity in the FCTR to the extent the hedge is
of the Companys cash management system. In
effective. To the extent the hedge is ineffective,
the consolidated statement of balance sheet,
such differences are recognized in the statement
bank overdrafts are presented under borrowings
of profit and loss.
within current liabilities.
When the hedged part of a net investment is
B. Investments
disposed of, the relevant amount recognized
in FCTR is transferred to the statement of Financial instruments measured at amortized cost:
profit and loss as part of the profit or loss on
disposal. Foreign currency differences arising Debt instruments that meet the following criteria
from translation of intercompany receivables are measured at amortized cost (except for
or payables relating to foreign operations, the debt instruments that are designated at fair
settlement of which is neither planned nor likely value through Profit or Loss (FVTPL) on initial
in the foreseeable future, are considered to form recognition):
part of net investment in foreign operation and t he asset is held within a business model
are recognized in FCTR. whose objective is to hold assets in order
(iv) Financial instruments to collect contractual cash flows; and
Interest income is recognized in statement of amortized cost using the effective interest
profit and loss for FVTOCI debt instruments. method. For these financial instruments, the
Other changes in fair value of FVTOCI financial carrying amounts approximate fair value due to
assets are recognized in other comprehensive the short term maturity of these instruments.
income. When the investment is disposed of, the
b) Derivative financial instruments
cumulative gain or loss previously accumulated
in reserves is transferred to statement of profit The Company is exposed to foreign currency
and loss. fluctuations on foreign currency assets, liabilities,
net investment in foreign operations and forecasted
Financial instruments measured at fair value
cash flows denominated in foreign currency.
through profit or loss (FVTPL):
The Company limits the effect of foreign exchange
Instruments that do not meet the amortized
rate fluctuations by following established risk
cost or FVTOCI criteria are measured at FVTPL.
management policies including the use of derivatives.
Financial assets at FVTPL are measured at fair
The Company enters into derivative financial
value at the end of each reporting period, with
instruments where the counterparty is primarily a
any gains or losses arising on re-measurement
bank.
recognized in statement of profit and loss.
The gain or loss on disposal is recognized in Derivatives are recognized and measured at fair
statement of profit and loss. value. Attributable transaction costs are recognized
in statement of profit and loss as cost.
Interest income is recognized in statement of
profit and loss for FVTPL debt instruments. Subsequent to initial recognition, derivative financial
Dividend on financial assets at FVTPL is instruments are measured as described below:
recognized when the Groups right to receive
dividend is established. A. Cash flow hedges
Investments in equity instruments designated to Changes in the fair value of the derivative
be classified as FVTOCI: hedging instrument designated as a cash flow
hedge are recognized in other comprehensive
The Company carries certain equity instruments income and held in cash flow hedging reserve,
which are not held for trading. The Company net of taxes, a component of equity, to the
has elected the FVTOCI irrevocable option for extent that the hedge is effective. To the extent
these instruments. Movements in fair value that the hedge is ineffective, changes in fair
of these investments are recognized in other value are recognized in the statement of profit
comprehensive income and the gain or loss is not and loss and reported within foreign exchange
reclassified to statement of profit and loss on gains/(losses), net within results from operating
disposal of these investments. Dividends from activities. If the hedging instrument no longer
these investments are recognized in statement meets the criteria for hedge accounting, then
of profit and loss when the Companys right to hedge accounting is discontinued prospectively.
receive dividends is established. If the hedging instrument expires or is sold,
terminated or exercised, the cumulative gain
C. Other financial assets:
or loss on the hedging instrument recognized
Other financial assets are non-derivative in cash flow hedging reserve till the period
financial assets with fixed or determinable the hedge was effective remains in cash flow
payments that are not quoted in an active hedging reserve until the forecasted transaction
market. They are presented as current assets, occurs. The cumulative gain or loss previously
except for those maturing later than 12 months recognized in the cash flow hedging reserve is
after the reporting date which are presented transferred to the statement of profit and loss
as non-current assets. These are initially upon the occurrence of the related forecasted
recognized at fair value and subsequently transaction. If the forecasted transaction is
measured at amortized cost using the effective no longer expected to occur, such cumulative
interest method, less any impairment losses. balance is immediately recognized in the
These comprise trade receivables, unbilled statement of profit and loss.
revenues, cash and cash equivalents and other
B. Hedges of net investment in foreign operations
assets.
Company has also designated a foreign currency
D. Trade and other payables
denominated borrowing as a hedge of net
Trade and other payables are initially recognized investment in foreign operations. Changes in the
at fair value, and subsequently carried at fair value of the derivative hedging instruments
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and gains/losses on translation or settlement b) Shares held by controlled trust (Treasury shares)
of foreign currency denominated borrowings
The Companys equity shares held by the controlled
designated as a hedge of net investment in
trust, which is consolidated as a part of the Group
foreign operations are recognized in other
are classified as Treasury shares. The Company has
comprehensive income and presented within
13,728,607, 14,829,824 and 14,829,824 treasury
equity in the FCTR to the extent that the hedge
shares as of March31, 2017, March 31, 2016 and April
is effective. To the extent that the hedge is
1, 2015, respectively. Treasury shares are recorded at
ineffective, changes in fair value are recognized
acquisition cost.
in the statement of profit and loss and reported
within foreign exchange gains/(losses), net c) Capital reserve
within results from operating activities.
Capital reserve amounting to` 1,139 (March 31, 2016
C. Others and April 1, 2015: ` 1,139, respectively) is not freely
available for distribution.
Changes in fair value of foreign currency
derivative instruments not designated as cash d) Capital redemption reserve
flow hedges are recognized in the statement
of profit and loss and reported within foreign Capital redemption reserve amounting to` 94 (March
exchange gains, net within results from 31, 2016 and April 1, 2015: ` 14, respectively) is not
operating activities. Changes in fair value and freely available for distribution.
gains/(losses) on settlement of foreign currency e) Retained earning
derivative instruments relating to borrowings,
which have not been designated as hedges are Retained earnings comprises of the Companys
recorded in finance expense. undistributed earnings after taxes.
The Company derecognizes a financial asset when the The share based payment reserve is used to record
contractual rights to the cash flows from the financial the value of equity-settled share based payment
asset expires or it transfers the financial asset and transactions with employees. The amounts recorded
the transfer qualifies for derecognition under Ind in share based payment reserve are transferred to
AS 109. If the Company retains substantially all the share premium upon exercise of restricted stock unit
risks and rewards of a transferred financial asset, the options by employees.
Company continues to recognize the financial asset g) Special economic zone re-investment reserves
and also recognizes a borrowing for the proceeds
received. A financial liability (or a part of a financial The Special Economic Zone Re-Investment Reserve
liability) is derecognized from the groups balance has been created out of profit of eligible SEZ units as
sheet when the obligation specified in the contract per provisions of section 10AA (1)(ii) of the Income
is discharged or cancelled or expires. tax Act, 1961 for acquiring new plant and machinery
for the business of the company. The reserve has
(v) Equity and share capital also been utilized for other business purposes of
a) Share capital and share premium SEZ units as per provisions of section 10AA of the
Income-tax Act, 1961 till the time the said reserve is
The authorized share capital of the Company as of utilized completely for the purposes of purchasing
March31, 2017, March 31, 2016 and April 1, 2015 is new plant and machinery.
` 6,100 divided into 2,917,500,000 equity shares of
` 2 each, 25,000,000 preference shares of ` 10 each h) Foreign currency translation reserve (FCTR)
and 150,000 10% optionally convertible cumulative The exchange differences arising from the translation
preference shares of ` 100 each. Par value of the of financial statements of foreign subsidiaries,
equity shares is recorded as share capital and the differences arising from translation of long-term
amount received in excess of par value is classified inter-company receivables or payables relating to
as share premium. foreign operations settlement of which is neither
Every holder of the equity shares, as reflected in planned nor likely in the foreseeable future, changes
the records of the Company as of the date of the in fair value of the derivative hedging instruments and
shareholder meeting shall have one vote in respect gains/losses on translation or settlement of foreign
of each share held for all matters submitted to vote currency denominated borrowings designated as
in the shareholder meeting. hedge of net investment in foreign operations are
recognized in other comprehensive income, net of
taxes and presented within equity as FCTR.
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an indefinite number of repetitive acts over a an asset and amortized over the contract term
specified period of time, revenue is recognized as reduction of revenue.
on a straight-line basis over the specified period
Contract expenses are recognized as expenses
unless some other method better represents the
by reference to the stage of completion of
stage of completion.
contract activity at the end of the reporting
In certain projects, a fixed quantum of service or period.
output units is agreed at a fixed price for a fixed
(xv) Finance costs
term. In such contracts, revenue is recognized
with respect to the actual output achieved till Finance costs comprise interest cost on borrowings,
date as a percentage of total contractual output. gain or losses arising on re-measurement of financial
Any residual service unutilized by the customer assets at FVTPL, gains/ (losses) on translation
is recognized as revenue on completion of the or settlement of foreign currency borrowings
term. and changes in fair value and gains/ (losses) on
settlement of related derivative instruments.
b) Products
Borrowing costs that are not directly attributable to
Revenue from products are recognized when the a qualifying asset are recognized in the statement of
significant risks and rewards of ownership have profit and loss using the effective interest method.
been transferred to the buyer, continuing managerial
(xvi) Other income
involvement usually associated with ownership
and effective control have ceased, the amount of Other income comprises interest income on deposits,
revenue can be measured reliably, it is probable that dividend income and gains / (losses) on disposal of
economic benefits associated with the transaction investments. Interest income is recognized using
will flow to the Company and the costs incurred or the effective interest method. Dividend income is
to be incurred in respect of the transaction can be recognized when the right to receive payment is
measured reliably. established.
c) Multiple element arrangements (xvii) Income tax
Revenue from contracts with multiple-element Income tax comprises current and deferred tax.
arrangements are recognized using the guidance Income tax expense is recognized in the statement
in Ind AS 18, Revenue. The Company allocates the of profit and loss except to the extent it relates to a
arrangement consideration to separately identifiable business combination, or items directly recognized
components based on their relative fair values or in equity or in other comprehensive income.
on the residual method. Fair values are determined
based on sale prices for the components when it a) Current income tax
is regularly sold separately, third-party prices for Current income tax for the current and prior periods
similar components or cost plus an appropriate are measured at the amount expected to be recovered
business-specific profit margin related to the from or paid to the taxation authorities based on the
relevant component. taxable income for the period. The tax rates and tax
d) Others laws used to compute the current tax amounts are
those that are enacted or substantively enacted as at
he Company accounts for volume discounts
T the reporting date and applicable for the period. The
and pricing incentives to customers by reducing Company offsets current tax assets and current tax
the amount of revenue recognized at the time of liabilities, where it has a legally enforceable right to
sale. set off the recognized amounts and where it intends
either to settle on a net basis, or to realize the asset
evenues are shown net of sales tax, value added
R
and liability simultaneously.
tax, service tax and applicable discounts and
allowances. Revenue includes excise duty. b) Deferred income tax
The Company accrues the estimated cost of Deferred income tax is recognized using the balance
warranties at the time when the revenue is sheet approach. Deferred income tax assets and
recognized. The accruals are based on the liabilities are recognized for deductible and taxable
Companys historical experience of material temporary differences arising between the tax base
usage and service delivery costs. of assets and liabilities and their carrying amount
in financial statements, except when the deferred
Costs that relate directly to a contract and
income tax arises from the initial recognition of
incurred in securing a contract are recognized as
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goodwill or an asset or liability in a transaction that 1 April 2015, and have not been applied in preparing
is not a business combination and affects neither these financial statements. The amendments to
accounting nor taxable profits or loss at the time of standards that could have potential impact on the
the transaction. financial statements of the Company are:
Deferred income tax assets are recognized to the Amendment to Ind AS 7:
extent it is probable that taxable profit will be
In March 2017, the Ministry of Corporate Affairs
available against which the deductible temporary
issued the Companies (Indian Accounting Standards)
differences and the carry forward of unused tax
(Amendments) Rules, 2017, notifying amendments
credits and unused tax losses can be utilized.
to Ind AS 7, Statement of cash flows. These
Deferred income tax liabilities are recognized for amendments are in accordance with the amendments
all taxable temporary differences except in respect made by International Accounting Standards Board
of taxable temporary differences associated (IASB) to IAS 7, Statement of cash flows in January
with investments in subsidiaries, associates and 2016, requiring the entities to provide disclosures
foreign branches where the timing of the reversal that enable users of financial statements to evaluate
of the temporary difference can be controlled and changes in liabilities arising from financing activities,
it is probable that the temporary difference will not including both changes arising from cash flows
reverse in the foreseeable future. and non-cash changes, suggesting inclusion of a
reconciliation between the opening and closing
The carrying amount of deferred income tax assets is
balances in the balance sheet for liabilities arising
reviewed at each reporting date and reduced to the
from financing activities, to meet the disclosure
extent that it is no longer probable that sufficient
requirement. The amendments are applicable to the
taxable profit will be available to allow all or part of
Company for annual periods commencing on or after
the deferred income tax asset to be utilized.
from April 1, 2017. The Company is assessing the
Deferred income tax assets and liabilities are disclosure requirements of the amendment and the
measured at the tax rates that are expected to apply effect on its financial statements.
in the period when the asset is realized or the liability
4. Notes on transition to Ind AS
is settled, based on tax rates (and tax laws) that
have been enacted or substantively enacted at the These financials statements are prepared in
reporting date. accordance with Ind AS. For years up to and including
The Company offsets deferred income tax assets the year ended March 31, 2016, the Company
and liabilities, where it has a legally enforceable prepared its financial statements in accordance with
right to offset current tax assets against current Indian GAAP (i.e., Previous GAAP).
tax liabilities, and they relate to taxes levied by the Accordingly, the Company has prepared financial
same taxation authority on either the same taxable statements which comply with Ind AS for periods
entity, or on different taxable entities where there is ending on March 31, 2017, together with the
an intention to settle the current tax liabilities and comparative period data as at and for the year
assets on anet basis or their tax assets and liabilities ended March 31, 2016. In preparing these financial
will be realized simultaneously. statements, the Companys opening balance sheet
(xviii) Earnings per share was prepared as at April 1, 2015, the Companys date
of transition to Ind AS.
B asic earnings per share is computed using
the weighted average number of equity shares Exemptions from retrospective application:
outstanding during the period adjusted for treasury In preparation of the Ind AS financial statements, the
shares held. Diluted earnings per share is computed Company has:
using the weighted-average number of equity and
dilutive equivalent shares outstanding during the 1. Elected to apply Ind AS 103, Business
period, using the treasury stock method for options Combinations, retrospectively to past business
and warrants, except where the results would be combinations from April 1, 2008.
anti-dilutive. 2. Elected to adopt the Previous GAAP carrying
New accounting standards not yet adopted: value of Property, Plant and Equipment as
deemed cost on date of transition.
Certain amendments to accounting standards are
not yet effective for annual periods beginning after
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As at As at Notes
March 31, 2016 April 1, 2015
Equity under Previous GAAP attributable to :
Equity holders of the Company(1) 446,886 370,920
Non-controlling interest 2,224 1,646
Total equity under Previous GAAP ` 449,110 ` 372,566
Effect of transition to Ind AS
Impact of application of Ind AS 103 to past business combinations 9,930 11,253 A
Fair valuation of investments 2,135 1,338 B
Provisions for expected credit loss (1,404) (1,243) C
Dividend and tax on dividend 2,959 20,656 D
Incremental deferred tax recognized, net 543 454 I
Others 387 260
Equity under Ind AS attributable to : ` 463,660 ` 405,284
Equity holders of the Company(1) 461,448 403,650
Non-controlling interest 2,212 1,634
(1)
includes share capital of `4,941 and `4,937 as at March 31, 2016 and April 1, 2015, respectively.
ii. Effect of Ind AS adoption on total comprehensive income for the year ended March 31, 2016
As at
March 31, 2017 March 31, 2016
Balance at the beginning of the year ` 98,394 ` 64,689
Translation adjustment (4,242) 3,213
Acquisition through business combinations, net 28,124 30,492
` 122,276 ` 98,394
Acquisition through business combinations for the year ended March31, 2017, includes goodwill recognized on
the acquisition of Appirio. Also refer note 7 to the consolidated financial statements.
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As at
March 31, 2017 March 31, 2016 April 1, 2015
IT Services ` 122,276 ` 98,394 ` 64,689
` 122,276 `98,394 ` 64,689
oodwill recognized on business combinations is allocated to Cash Generating Units (CGUs), within the IT Services
G
operating segment, which are expected to benefit from the synergies of the acquisitions.
uring the year ended March 31, 2017, the Company realigned its CGUs (also refer note 37). Consequently, goodwill
D
has been allocated to the new CGUs as follows:
As at
March 31, 2017
Banking Financial Services and Insurance (BFSI) ` 19,912
Healthcare and Life Sciences (HLS) 48,144
Consumer (CBU) 17,442
Energy, Natural Resources and Utilities (ENU) 16,393
Manufacturing and Technology (MNT) 19,480
Communication (COMM) 905
` 122,276
Following table presents the allocation of goodwill to the CGUs for the year ended March 31, 2016 and April 1, 2015.
As at
March 31, 2016 April 1, 2015
Banking Financial Services and Insurance (BFSI) ` 15,725 ` 14,101
Healthcare and Life Sciences (HLS) 38,096 14,080
Retail, Consumer, Transport and Government (RCTG) 10,712 9,426
Energy, Natural Resources and Utilities (ENU) 16,550 15,768
Manufacturing and High-Tech (MFG) 12,559 8,169
Global Media and Telecom (GMT) 4,752 3,145
` 98,394 ` 64,689
For the purpose of 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 Companys operating
segment. Goodwill is tested for impairment at least annually in accordance with the Companys 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 of March 31, 2016 and 2017 as the recoverable value of
the CGUs exceeded the carrying value. Further, none of the CGUs tested for impairment as of March 31, 2016 and 2017
were at risk of impairment. An analysis of the calculations sensitivity to a change in the key parameters (turnover and
earnings multiples), did not identify any probable scenarios where the CGUs recoverable amount would fall below its
carrying amount.
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Intangible assets
Customer Marketing Total
related related *
Gross carrying value:
As at April 1, 2015 ` 10,617 ` 905 ` 11,522
Translation adjustment 292 120 412
Disposal adjustment - 189 189
Acquisition through business combinations 7,451 1,373 8,824
As at March 31, 2016 18,360 2,587 20,947
Translation adjustment (546) (314) (860)
Disposal adjustment - - -
Acquisition through business combinations 2,714 4,006 6,720
As at March 31, 2017 20,528 6,279 26,807
Accumulated depreciation/ impairment:
As at April 1, 2015 2,936 655 3,591
Translation adjustment - 70 70
Disposal adjustment - - -
Amortization 1,228 217 1,445
As at March 31, 2016 4,164 942 5,106
Translation adjustment (7) (68) (75)
Disposal adjustment - - -
Amortization 5,107 747 5,854
As at March 31, 2017 ` 9,264 ` 1,621 ` 10,885
Net book value
As at April 1, 2015 ` 7,681 ` 250 ` 7,931
As at March 31, 2016 ` 14,196 ` 1,645 ` 15,841
As at March 31, 2017 ` 11,264 ` 4,658 ` 15,922
* Marketing related intangible assets include Technical Know-how, patents and trademarks and non-compete.
Acquisition through business combinations for the year ended March31, 2017, includes intangible assets recognized
on the acquisitions of Appirio. Also, refer note 7 to the consolidated financial statements.
As of March31, 2017, the estimated remaining amortization period for intangibles acquired on acquisitions are as follows:
7. Business combination
Summary of acquisitions during the year ended March31, 2016 is given below:
Designit AS
On August 6, 2015, the Company obtained control of Designit AS (Designit) by acquiring 100% of its share capital.
Designit is a Denmark based global strategic design firm specializing in designing transformative product-service
experiences. The acquisition strengthens the Companys digital offerings, combining engineering and transformative
technology with human centered-design methods.
The acquisition was executed through a share purchase agreement for a consideration of ` 6,501 (EUR 93 million)
which includes a deferred earn-out component of ` 2,108 (EUR 30 million), which is linked to achievement of
revenues and earnings over a period of 3 years ending June 30, 2018. The fair value of the earn-out liability was
estimated by applying the discounted cash flow approach considering discount rate of 13% and probability
adjusted revenue and earnings estimates. This earn-out liability was fair valued at ` 1,287 million and recorded
as part of purchase price allocation.
The following table presents the allocation of purchase price:
Net assets acquired include ` 47 of cash and cash equivalents and trade receivables valued at ` 2,472.
The goodwill of ` 22,590 comprises value of acquired workforce and expected synergies arising from the acquisition.
Goodwill is not deductible for income tax purposes.
During the year ended March 31, 2017, uncertainties around regulatory changes relating to the Affordable Care
Act have led to a significant decline in the revenue and earnings estimates, resulting in revision of fair value of
earn-out liability to ` 65 million. Further, this has resulted in reduction in the carrying value of certain intangible
assets recognized on acquisition and accordingly an impairment charge has been recorded. Consequently, a net
loss of ` 1,351 million has been recorded in the consolidated statement of profit and loss.
If the acquisition had occurred on April 1, 2015, management estimates that consolidated revenue for the Company
would have been ` 526,671 and the profit after taxes would have been ` 88,318 for twelve months ended March
31, 2016. The pro-forma amounts are not necessarily indicative of the results that would have occurred if the
acquisition had occurred on date indicated or that may result in the future.
Summary of material acquisitions during the year ended March31, 2017 is given below:
Viteos Group
Previously, the Company had announced on December 23, 2015, the signing of a definitive agreement to acquire
Viteos Group. However, due to inordinate delays in completion of closing conditions that exceeded the target
closing date and expiration date under the terms of the agreement, both parties decided not to proceed with the
acquisition.
Appirio Inc.
On November 23, 2016, the Company obtained full control of Appirio Inc. (Appirio). Appirio is a global services
company that helps customers create next-generation employee and customer experiences using latest cloud
technology services. This acquisition will strengthen Wipros cloud application service offerings. The acquisition
was consummated for a consideration of ` 32,414 (USD 475.7 million).
The following table presents the provisional allocation of purchase price:
8. Investments
As at
March 31, 2017 March 31, 2016 April 1, 2015
Financial instruments at FVTPL
Investments in liquid and short-term mutual funds (1) ` 104,675 ` 10,578 `10,202
Others Debentures 569 816 822
Financial instruments at FVTOCI
Equity instruments (refer note 8.1) 5,303 4,907 3,867
Commercial paper, Certificate of deposits and bonds 145,614 121,676 43,072
(refer note 8.2)
Financial instruments at amortized cost
Inter corporate and term deposits (2) (3) 42,972 71,174 39,731
` 299,133 ` 209,151 ` 97,694
Included in the consolidated balance sheet as follows:
Non-current ` 7,103 `4,907 `3,867
Current ` 292,030 ` 204,244 ` 93,827
Aggregate amount of quoted investments and market
value thereof
Current ` 104,675 `11,672 `12,248
Aggregate amount of unquoted investments
Non-current ` 7,103 `4,907 `3,867
Current ` 144,383 ` 121,398 ` 41,848
(1)
Investments in liquid and short-term mutual funds include investments amounting to`117 (March 31, 2016
and April 1, 2015:` 109 and ` Nil respectively) pledged as margin money deposits for entering into currency
future contracts.
(2)
These deposits earn a fixed rate of interest.
(3)
Term deposits include deposits in lien with banks amounting to` 308 (March 31, 2016 and April 1, 2015:` 300
and ` 300 respectively).
Details of investments:
8.1 Details of investments in equity instruments classified as FVTOCI
9. Financial instruments
As at
March 31, 2017 March 31, 2016 April 1, 2015
Financial assets
Trade receivables and unbilled revenue
Gross amount recognized Trade receivables and unbilled ` 148,838 ` 152,759 ` 135,710
revenue
Gross amounts of recognized financial liabilities set off in (4,899) (3,510) (3,084)
the consolidated balance sheet
Net amounts of Trade receivables and unbilled revenue ` 143,939 ` 149,249 ` 132,626
presented in the consolidated balance sheet
Financial liabilities
Trade payables
Gross amount recognized Trade payables ` 53,572 ` 52,531 ` 43,083
Gross amounts of recognized financial assets set off in the (4,899) (3,510) (3,084)
consolidated balance sheet
Net amounts of Trade payables presented in the ` 48,673 ` 49,021 ` 39,999
consolidated balance 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
The fair value of cash and cash equivalents, trade receivables, unbilled revenues, borrowings, trade payables, other
current financial assets and liabilities approximate their carrying amount largely due to the short-term nature of
these instruments. The Companys 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 that are
overdue 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 of March 31, 2017, March 31, 2016
and April 1, 2015, 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 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.
Fair value hierarchy
The table below analyses financial instruments carried at fair value, by valuation method. The different levels have
been defined as follows:
Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 Inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
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The following table presents fair value of hierarchy of assets and liabilities measured at fair value on a recurring
basis:
As at April 1, 2015
Fair value measurements at reporting date using
Particulars
Total Level 1 Level 2 Level 3
Assets
Derivative instruments
- Cash flow hedges ` 4,237 `- ` 4,237 `-
- Net investment hedges 140 - 140 -
- Others 1,248 - 724 524
Investments:
- Investment in liquid and short-term mutual funds 10,202 10,202 - -
- Other investments 822 - 822 -
- Investment in equity instruments 3,867 - - 3,867
- Commercial paper, Certificate of deposits and bonds 43,072 2,046 41,026 -
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As at April 1, 2015
Fair value measurements at reporting date using
Particulars
Total Level 1 Level 2 Level 3
Liabilities
Derivative instruments
- Cash flow hedges (80) - (80) -
- Net investment hedges (264) - (264) -
- Others (480) - (480) -
Contingent consideration (110) - - (110)
The following methods and assumptions were used to estimate the fair value of the level 2 financial instruments
included in the above table.
erivative instruments (assets and liabilities): The Company enters into derivative financial instruments with
D
various counter-parties, primarily banks with investment grade credit ratings. Derivatives valued using valuation
techniques with market observable inputs are mainly interest rate swaps, foreign exchange forward contracts and
foreign exchange option contracts. The most frequently applied valuation techniques include forward pricing, swap
models and Black Scholes models (for option valuation), using present value calculations. The models incorporate
various inputs including the credit quality of counterparties, foreign exchange spot and forward rates, interest rate
curves and forward rate curves of the underlying. As at March 31, 2017, 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.
I nvestment 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.
Details of assets and liabilities considered under Level 3 classification:
The following table presents the aggregate contracted principal amounts of the Companys derivative contracts
outstanding:
As at
March31, 2017 March 31, 2016 April 1, 2015
Designated derivative instruments
Sell Forward contracts $ 886 $ 897 $ 790
280 248 198
228 271 220
AUD 129 AUD 139 AUD 83
SAR - SAR 19 SAR -
AED - AED 7 AED -
Range Forward Option contracts $ 130 $ 25 $ 43
- 7 -
Par Forward Contracts $ - $ - $ 3
Net investment hedge in foreign operations $ - $ - $ 145
Interest rate swaps $ - $ 150 $ 150
Non designated derivative instruments
Sell Forward contracts $ 889 $ 1,280 $ 1,304
82 55 67
83 87 60
AUD 51 AUD 35 AUD 53
- 490 490
SGD 3 SGD 3 SGD 13
ZAR 262 ZAR 110 ZAR 69
CAD4 1 CAD 11 CAD 30
CHF - CHF 10 CHF 10
SAR 49 SAR 58 SAR -
AED 69 AED 7 AED -
PLN 31 PLN - PLN -
Range Forward Option contracts $ - $ 18 $ -
Buy Forward contracts $ 750 $ 822 $ 790
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,
2017 2016
Balance as at the beginning of the year ` 2,367 ` 4,268
Deferred cancellation gain/(loss), net 74 (3)
Changes in fair value of effective portion of derivatives 12,391 1,079
Net (gain)/loss reclassified to statement of profit and loss on occurrence of
hedged transactions (7,507) (2,977)
Gain/(loss) on cash flow hedging derivatives, net ` 4,958 ` (1,901)
Balance as at the end of the year ` 7,325 ` 2,367
Deferred tax thereon ` (1,419) ` (457)
Balance as at the end of the year, net of deferred tax ` 5,906 ` 1,910
The related hedge transactions for balance in cash flow hedging reserves as of March 31, 2017 are expected to
occur and be reclassified to the statement of profit and loss over a period of three years.
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As at March 31, 2017 and 2016, 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.
Sale of financial assets
From time to time, in the normal course of business, the Company transfers accounts receivables, unbilled revenues,
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,
2017 and March 31, 2016 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 loans and borrowings in the statement of consolidated balance sheet.
Financial risk management
General
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 Companys 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
Companys earnings and equity to losses.
Risk Management Procedures
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, 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.
Foreign currency risk
The Company operates internationally and a major portion of its business is transacted in several currencies.
Consequently, the Company is exposed to foreign exchange risk through receiving payment for sales and services
in the United States and elsewhere, and making purchases from overseas suppliers in various foreign currencies.
The exchange rate risk primarily arises from foreign exchange revenue, receivables, cash balances, forecasted
cash flows, payables and foreign currency loans and borrowings. A significant portion of the Companys revenue
is in the U.S.Dollar, the United Kingdom PoundSterling, the Euro, the Canadian Dollar and the Australian Dollar,
while a large portion of costs are in Indian rupees. The exchange rate between the rupee and these currencies
has fluctuated significantly in recent years and may continue to fluctuate in the future. Appreciation of the rupee
against these currencies can adversely affect the Companys results of operations.
The Company evaluates exchange rate exposure arising from these transactions and enters into 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. The Company has also designated foreign currency borrowings
as hedge against respective net investments in foreign operations.
As of March31, 2017, March 31, 2016 and April 1, 2015 respectively, a ` 1 increase/decrease in the spot exchange
rate of the Indian rupee with the U.S. dollar would result in approximately `1,155, `1,398 and `1,495 respectively
decrease/increase in the fair value of foreign currency dollar denominated derivative instruments.
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The below table presents foreign currency risk from non-derivative financial instruments as of March31, 2017,
March 31, 2016 and April 1, 2015:
As at April 1, 2015
US $ Euro Pound Australian Canadian Other Total
Sterling Dollar Dollar currencies#
Trade receivables `29,586 `4,648 `8,603 `1,376 `211 `3,005 `47,429
Unbilled revenues 16,430 2,855 5,099 915 196 1,292 26,787
Cash and cash 40,465 1,098 842 255 26 2,100 44,786
equivalents
Other assets 1,393 1,241 308 1,782 12 218 4,954
Loans, borrowings and (58,750) - (360) (932) - (227) (60,269)
bank overdrafts (1)
Trade payables (22,296) (2,923) (4,149) (797) (119) (1,571) (31,855)
and other financial
liabilities
Net assets / (liabilities) ` 6,828 ` 6,919 ` 10,343 ` 2,599 ` 326 ` 4,817 ` 31,832
#Other currencies reflect currencies such as Singapore Dollars, Saudi Arabian Riyals etc.
(1)
Includes current obligation under borrowings, term loan and financial leases classified under Other current
financial liabilities.
As at March 31, 2017 and March 31, 2016, respectively, every 1% increase/decrease of the respective foreign
currencies compared to functional currency of the Company would impact results by approximately ` 69 and
` 343 respectively.
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As at
March 31, 2017 March 31, 2016 April 1, 2015
Financial assets that are neither past due nor impaired ` 68,571 `73,787 `67,429
Financial assets that are past due but not impaired
Past due 0-30 days ` 8,259 `7,924 `7,343
Past due 31-60 days 3,929 3,959 3,936
Past due 61-90 days 3,410 2,980 2,876
Past due over 90 days 19,203 17,324 15,064
Total past due but not impaired ` 34,801 `32,187 `29,219
Total ` 103,372 ` 105,974 ` 96,648
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 into 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.
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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 Companys 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 Companys net liquidity position through rolling forecasts on the basis
of expected cash flows. As of March31, 2017, 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.
As at April 1, 2015
Contractual cash flows Carrying Less than 1-2 years 2-4 years 4-7 years Total
value 1 year
Loans, borrowings and bank ` 78,913 66,526 1,827 11,609 116 ` 80,078
overdrafts (1)
Trade payables ` 39,999 39,999 - - - ` 39,999
Derivatives liabilities ` 824 753 39 22 10 ` 824
Other financial liabilities (1) ` 19,266 639 75 288 70 ` 1,072
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, 2017 March 31, 2016 April 1, 2015
Cash and cash equivalents ` 52,710 `99,049 `158,940
Investments 292,030 204,244 93,827
Loans, borrowings and bank overdrafts (1) (142,412) (125,221) (78,913)
Net Cash position ` 202,328 `178,072 `173,854
(1)
Includes current obligation under borrowings, term loan and financial leases classified under Other current
financial liabilities.
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As at
March 31, 2017 March 31, 2016 April 1, 2015
Unsecured
Considered good ` 98,844 ` 100,976 ` 90,288
Considered doubtful 9,108 8,709 5,510
107,952 109,685 95,798
Less: Provision for doubtful receivables (9,108) (8,709) (5,510)
` 98,844 ` 100,976 ` 90,288
Included in the consolidated balance sheet as follows:
Non-current ` 3,998 ` 1,362 ` 2,443
Current ` 94,846 ` 99,614 ` 87,845
The activity in the allowance for doubtful receivables is given below:
As at
March 31, 2017 March 31, 2016
Balance at the beginning of the year ` 8,709 ` 5,510
Additions during the year, net 2,427 3,247
Uncollectable receivables charged against allowance (2,099) (115)
Translation adjustments 71 67
Balance at the end of the year ` 9,108 ` 8,709
11. Other financial assets
As at
March 31, 2017 March 31, 2016 April 1, 2015
Non-current
Security deposits ` 1,636 `1,659 `1,472
Other deposits 449 548 460
Finance lease receivables 2,674 2,964 2,899
(secured by underlying assets given on lease). (Refer note 32)
Interest receivables 26 17 7
` 4,785 ` 5,188 ` 4,838
Current
Security Deposits ` 514 `239 `2,054
Other deposits 148 442 254
Due from officers and employees 936 1,824 977
Finance lease receivables 1,854 2,034 3,461
(secured by underlying assets given on lease). (Refer note 32)
Interest receivable 2,177 2,488 3,760
Others 3,000 2,847 3,755
Considered doubtful 492 798 880
9,121 10,672 15,141
Less : Provision for doubtful loans and advances (492) (798) (880)
` 8,629 ` 9,874 ` 14,261
Total ` 13,414 ` 15,062 ` 19,099
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As at
March 31, 2017 March 31, 2016 April 1, 2015
Non-current
Prepaid expenses including rentals for lease land and ` 8,833 ` 6,810 ` 5,135
deposits
Deferred contract costs 3,175 3,807 4,445
Capital advances 1,574 2,397 1,511
` 13,582 ` 13,014 ` 11,091
Current
Prepaid expenses ` 12,824 ` 14,012 ` 9,118
Due from officers and employees 1,413 1,956 2,511
Deferred contract costs 4,270 3,720 3,610
Balance with excise, customs and other authorities 2,153 1,814 1,786
Advances to suppliers 1,451 1,315 2,312
Others 11 203 -
` 22,122 ` 23,020 ` 19,337
Total ` 35,704 ` 36,034 ` 30,428
13. Inventories
As at
March 31, 2017 March 31, 2016 April 1, 2015
Raw materials `- `- `3
Work in progress - - 2
Finished goods [including goods in transit - ` 2 (` 2 and ` 7
for March 31, 2016 and April 1, 2015, respectively)] 7 7 24
Traded goods 3,101 4,512 3,888
Stores and spares 807 871 932
` 3,915 ` 5,390 ` 4,849
14. Cash and cash equivalents
As at
March 31, 2017 March 31, 2016 April 1, 2015
Balances with banks
Current accounts ` 27,163 ` 62,836 `46,074
Unclaimed dividend 50 53 25
Demand deposits (1)(2) 24,902 35,531 111,742
Cheques, drafts on hand 593 628 1,070
Cash in hand 2 1 29
` 52,710 ` 99,049 ` 158,940
(1)
hese deposits can be withdrawn by the Company at any time without prior notice and without any penalty on
T
the principal.
(2)
Demand deposits with banks include deposits in lien with banks amounting to ` Nil (March 31, 2016 and April
1, 2015: ` 3 and ` Nil respectively).
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Cash and cash equivalents consists of the following for the purpose of the cash flow statement:
As at
March 31, 2017 March 31, 2016
Cash and cash equivalents ` 52,710 ` 99,049
Bank overdrafts (1,992) (657)
` 50,718 ` 98,392
Specified bank notes -
As per the Notification G.S.R 308(E) dated March 31, 2017 issued by the Ministry of Corporate Affairs, the Company
needs to provide the details of Specified Bank Notes (SBN) held and transacted during the period from November
8, 2016 to December 30, 2016. The term Specified Bank Notes shall have the same meaning as provided in the
notification of the Government of India, in the Ministry of Finance, Department of Economic Affairs number S.O.
3407(E), dated the November 8, 2016. The details is provided in the table below:
As at
March 31, 2017 March 31, 2016 April 1, 2015
Authorised capital
2,917,500,000 (March 31, 2016 and March 31, 2015: ` 5,835 ` 5,835 ` 5,835
2,917,500,000) equity shares [Par value of ` 2 per share]
25,000,000 (March 31, 2016 and March 31, 2015:
25,000,000) 10.25 % redeemable cumulative preference 250 250 250
shares [Par value of ` 10 per share]
1,50,000 (2016 and 2015:1,50,000) 10% Optionally 15 15 15
convertible cumulative prefence shares
[Par value of ` 100 per share]
` 6,100 ` 6,100 ` 6,100
Issued, subscribed and fully paid-up capital
2,430,900,565 (March 31, 2016: 2,470,713,290 and April 1, 4,861 4,941 4,937
2015 : 2,469,043,038) equity shares of ` 2 each
` 4,861 ` 4,941 ` 4,937
Terms / Rights attached to equity shares
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 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
31, 2017.
^ Value is less than ` 1 million
ii. Details of shareholders holding more than 5% of the total equity shares of the Company
Name of the Shareholder As at March 31, 2017 As at March 31, 2016 As at April 1, 2015
No. of Shares % held No. of Shares % held No. of Shares % held
Mr. Azim Hasham Premji 370,956,000 15.26 370,956,000 15.01 370,956,000 15.02
Partner representing
Hasham Traders
Mr. Azim Hasham Premji 452,906,791 18.63 452,906,791 18.33 452,906,791 18.34
Partner representing
Prazim Traders
Mr. Azim Hasham Premji 451,619,790 18.58 451,619,790 18.28 451,619,790 18.29
Partner representing Zash
Traders
Azim Premji Trust 399,065,641 16.42 429,714,120 17.39 429,714,120 17.40
iii. Other details of equity shares for a period of five years immediately preceding March 31, 2017
As at
March 31, 2017 March 31, 2016 April 1, 2015
Aggregate number of share allotted as fully paid up
pursuant to contract(s) without payment being received in
cash - 195,717 841,585
(Allotted to the Wipro Inc. Trust, the sole beneficiary of
which is Wipro Inc., a wholly owned subsidiary of the
Company, in consideration of acquisition of inter-company
investments)
Aggregate number of shares allotted as fully paid bonus
shares - - 979,119,256
Aggregate number of shares bought back (Refer note 34) 40,000,000 - -
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As at
March 31, 2017 March 31, 2016 April 1, 2015
Non-current
Secured
Obligations under finance leases (1) ` 4,657 ` 5,831 ` 3,218
4,657 5,831 3,218
Unsecured
Term loans:
External commercial borrowing 9,728 9,938 9,375
Others (2) 5,226 1,592 114
14,954 11,530 9,489
Total Non-current ` 19,611 ` 17,361 ` 12,707
Current
Secured
Cash Credit `- `- ` 3,675
Loans repayable on demand - - 141
- - 3,816
Unsecured
Cash Credit 1,992 657 227
Loans repayable on demand (3) 114,749 101,991 60,398
116,741 102,648 60,625
Total Current ` 116,741 ` 102,648 ` 64,441
Total Loans, borrowings and bank overdrafts ` 136,352 ` 120,009 ` 77,148
(1)
urrent obligations under financial leases amounting to ` 3,623 (March 31, 2016:` 3,132 and April 1, 2015
C
`1,660 respectively) is classified under Other current financial liabilities.
(2)
Current maturities of term loans amounting to ` 391 (March 31, 2016: ` 334 and April 1, 2015: ` 104 respectively)
is classified under Other current financial liabilities.
(3)
Current obligations under borrowings from banks amounting to ` 2,046 (March 31, 2016:`1,746 and April 1,
2015: ` Nil) is classified under Other current financial liabilities.
Short-term loans and borrowings
The Company had short-term borrowings including bank overdrafts amounting to ` 116,742, ` 102,667 and ` 64,443
as at March 31, 2017, March 31, 2016 and April 1, 2015 respectively. The principal source of Short-term borrowings
from banks as of March 31, 2017 primarily consists of lines of credit of approximately ` 204, U.S. Dollar (U.S.$) 2,495
million, Canadian Dollar (CAD) 44 million, Australian Dollar (AUD) 13 million, EURO 1 million and United Kingdom
Pound sterling (GBP) 23 million from bankers for working capital requirements and other short term needs. As of
March 31, 2017, the Company has unutilized lines of credit aggregating U.S.$ 744 million, EURO 1 million, AUD 13
million, GBP 5 million and CAD 14 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. Significant portion of these
facilities bear floating rates of interest, referenced to LIBOR and a spread, determined based on market conditions.
The Company has non-fund based revolving credit facilities in various currencies equivalent to ` 51,739, ` 41,740
and ` 39,511 as of March 31, 2017, March 31, 2016 and April 1, 2015, respectively, towards operational requirements
that can be used for the issuance of letters of credit and bank guarantees. As of March 31, 2017, March 31, 2016
and April 1, 2015, an amount of ` 29,716, ` 15,519, ` 18,277 respectively, was unutilized out of these non-fund
based facilities.
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Currency As at As at As at
March31, 2017 March31, 2016 April 1, 2015
Foreign Indian Foreign Indian Rupee Foreign Indian Foreign Indian
currency Rupee currency currency Rupee currency Rupee
in in in in
millions millions millions millions
Unsecured external
commercial borrowing
U.S.Dollar 150 ` 9,728 1.81% June2018 150 ` 9,938 150 ` 9,375
Unsecured term loan
Indian Rupee NA 714 8.310.3% May2021 NA 666 NA 218
Saudi Arabian Riyal (SAR) 71 1,229 SIBOR+1.50% April2018 169 2,987 - -
Australian Dollar (AUD) 2 116 4.65% January 2022 - - - -
Canadian Dollar (CAD) 85 4,131 CDOR+1.25% October 2021 - - - -
EURO 19 1,282 EONIA+1% December 2020 - - - -
Great British pound (GBP) 1 73 3.4% May 2022 - - - -
USD 2 118 3.27%-3.81% June 2021 - - - -
` 17,391 ` 13,591 ` 9,593
Obligations under
finance leases 8,280 8,963 4,878
` 25,671 ` 22,554 ` 14,471
The contracts governing the Companys unsecured external commercial borrowing contain certain covenants that
limit future 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 of March 31, 2017,
March 31, 2016 and April 1, 2015 the Company has met all the covenants under these arrangements.
Interest expense was `1,916 and `1,410 for the year ended March 31, 2017 and 2016, respectively.
Also, refer note 33.
17. Other financial liabilities
As at
March 31, 2017 March 31, 2016 April 1, 2015
Non-current
Others ` 853 ` 2,316 ` 385
` 853 ` 2,316 ` 385
Current
Employee benefit obligations ` 16,813 ` 19,166 ` 18,341
Current maturities of long term borrowings (1) 2,437 2,079 104
Current maturities of obligation under finance lease (1) 3,623 3,133 1,660
Interest accrued but not due on borrowing 229 227 458
Unclaimed dividends 50 53 25
Others 4 521 57
` 23,156 ` 25,179 ` 20,645
Total ` 24,009 ` 27,495 ` 21,030
(1)
For rate of interest and other term and conditions, refer to note 16.
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18. Provisions
As at
March 31, 2017 March 31, 2016 April 1, 2015
Non-current
Employee benefits obligations ` 4,235 ` 4,618 ` 3,062
Provision for warranty 4 14 5
Others 2 - -
` 4,241 ` 4,632 ` 3,067
Current
Provision for employee benefits ` 5,912 ` 5,494 ` 4,802
Provision for warranty 436 388 306
Others 1,195 1,229 1,586
` 7,543 ` 7,111 ` 6,694
Total ` 12,184 ` 11,743 ` 9,761
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.
Particular Year ended March 31, 2017 Year ended March 31, 2016
Provision for Others Provision for Others
warranty warranty
Provision at the beginning of the year ` 402 ` 1,229 ` 311 ` 1,586
Additions during the year, net 631 180 451 82
Utilized/ reversed during the year (593) (212) (360) (439)
Provision at the end of the year ` 440 ` 1,197 ` 402 ` 1,229
Included in the consolidated balance
sheet as follows:
Non-current portion ` 4 ` 2 ` 14 ` -
Current portion ` 436 ` 1,195 ` 388 ` 1,229
Trade payables include due to suppliers under The Micro, Small and Medium Enterprises Development Act, 2006,
[MSMED Act] as at March 31, 2017, March 31, 2017 and April 1, 2015. The disclosure pursuant to the said Act is
as under:
As at
Particulars
March 31, 2017 March 31, 2016 April 1, 2015
Principal amount due to suppliers under MSMED Act ` 31 ` 10 ` 21
Interest accrued and remaining unpaid at the end of the year 7 1 1
to suppliers under MSMED Act
Total interest paid on all delayed payments during the year 1 ^ -
under MSMED Act
^Less than ` 1.
This information has been determined to the extent such parties have been identified on the basis of information
available with the Company.
21. Revenue from operations
Year ended
March 31, 2017 March 31, 2016
Sale of Services ` 522,061 ` 481,369
Sale of Products 28,341 31,071
` 550,402 ` 512,440
22. Other operating income
During the year March 31, 2017, the Company has concluded the sale of EcoEnergy division for a consideration of
` 4,670. Net gain from the sale, amounting to ` 4,082 has been recorded as Other operating income.
23. Other income
Year ended
March 31, 2017 March 31, 2016
Interest income ` 17,307 ` 20,568
Dividend Income 311 66
Gain on sale of investments 3,486 2,646
Unrealized gains/losses on financial instruments measured at fair value 556 375
through profit or loss
Other exchange differences, net 3,807 3,867
` 25,467 ` 27,552
24. Changes in inventories of finished goods, work in progress and stock-in-trade
Year ended
March 31, 2017 March 31, 2016
Opening stock
Work in progress ` - ` 2
Traded goods 4,512 3,888
Finished products 7 24
4,519 3,914
Less:
Work in progress - -
Traded goods 3,101 4,512
Finished products 7 7
3,108 4,519
` 1,411 ` (605)
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Year ended
March 31, 2017 March 31, 2016
Salaries and wages ` 259,270 ` 237,949
Employee benefits plans
Gratuity and other defined benefit plans 1,095 885
Contribution to provident and other funds 5,974 5,166
Share based compensation 1,742 1,534
` 268,081 ` 245,534
Defined benefit plan actuarial gains/ (losses) recognized in other comprehensive income include:
Year ended
March 31, 2017 March 31, 2016
Re-measurement of net defined benefit liability / (asset)
Return on plan assets excluding interest income ` (189) ` 30
Actuarial loss / (gain) arising from financial assumptions 363 180
Actuarial loss / (gain) arising from demographic assumptions (73) 2
Actuarial loss / (gain) arising from experience adjustments (313) 798
` (212) ` 1,010
(b) Defined benefits plans
Amount recognized in the statement of profit and loss in respect of defined benefit plans is as follows:
Year ended
March 31, 2017 March 31, 2016
Current service cost ` 1,130 ` 915
Net Interest on net defined benefits liability / (assets) (35) (30)
Net gratuity cost / (benefit) ` 1,095 ` 885
Actual return on plan assets ` 692 ` 351
Change in present value of defined obligation is summarized below:
As at
March 31, 2017 March 31, 2016
Defined benefit obligation at the beginning of the year ` 6,656 ` 4,941
Acquisitions 751 -
Current Service cost 1,130 915
Interest on obligation 464 350
Benefits paid (708) (530)
Remeasurement loss /(gains)
Actuarial loss /(gain) arising from financial assumptions 363 180
Actuarial loss /(gain) arising from demographic assumptions (73) 2
Actuarial loss /(gain) arising from experience assumptions (313) 798
Defined benefit obligation at the end of the year ` 8,270 ` 6,656
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As at
March 31, 2017 March 31, 2016
Fair value of plan assets at the beginning of the year ` 6,488 ` 4,781
Acquisitions 561 -
Expected return on plan assets 499 380
Employer contributions 186 1,887
Benefits paid (4) (530)
Remeasurement loss /(gain)
Return on plan assets excluding interest income 189 (30)
Fair value of plan assets at the end of the year ` 7,919 ` 6,488
Present value of unfunded obligation (351) (168)
Recognized asset /(liability) (351) (168)
As at March 31, 2017, March 31, 2016 and April 1, 2015, plan assets were primarily invested in insurer managed
funds.
The Company has established an income tax approved irrecoverable trust fund to which it regularly contributes
to finance the liabilities of the plan. The funds 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 limit 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
Assumptions March 31, 2017 March 31, 2016
Discount rate 5.91 % 7.02 %
Rate of increase in compensation levels 5.91 % 7.02 %
Rate of return on plan assets 6.90 % 7.31 %
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 government securities for the estimated
term of the obligations. The estimates of future salary increase considered takes into account the inflations,
seniority, promotion and other relevant factors. Attrition rate considered is the managements 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, 2018 : ` 1,284
Estimated benefit payments from the fund of the year ending
March 31, 2018 ` 1,171
March 31, 2019 1,062
March 31, 2020 977
March 31, 2021 870
March 31, 2022 756
Thereafter 5,378
Total ` 10,214
The expected benefits are based on the same assumptions used to measure the Companys benefit obligations
as at March 31, 2017.
Sensitivity for significant actuarial assumptions is computed to show the movement in defined benefit obligation
by 0.5 percentage.
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As of March 31, 2017, every 0.5 percentage point increase/ (decrease) in discount rate will result in (decrease)/
increase of gratuity benefit obligation by approximately ` (187) and `207 respectively.
As of March 31, 2017, every 0.5 percentage point increase/ (decrease) in expected rate of salary will result in
increase/ (decrease) of gratuity benefit obligation by approximately `176 and `(169) respectively.
(c) Provident fund (PF):
The details of fund and plan assets are given below:
As at
Change in the benefit obligation March 31, 2017 March 31, 2016 April 1, 2015
Fair value of plan assets ` 40,059 ` 36,019 ` 28,455
Present value of defined benefit obligation 40,059 36,019 28,455
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
Assumptions March 31, 2017 March 31, 2016 April 1, 2015
Discount rate 6.90 % 7.75 % 7.95 %
Average remaining tenure of investment portfolio 6 years 6 years 6 years
Guaranteed rate of return 8.65 % 8.75 % 8.75 %
Also, refer note 31 for details to employee stock options.
26. Finance costs
Year ended
March 31, 2017 March 31, 2016
Interest ` 1,916 ` 1,410
Exchange fluctuations on foreign currency borrowings, net 3,267 4,172
(to the extent regarded as borrowing cost)
` 5,183 ` 5,582
27. Other expenses
Year ended
March 31, 2017 March 31, 2016
Sub-contracting / technical fees / third party application ` 82,747 ` 67,769
Travel 20,147 23,507
Facility expenses 19,297 16,480
Communication 5,370 4,825
Rates, taxes and insurance 2,261 2,526
Marketing and brand building 2,936 2,292
Provision for doubtful debt 2,427 2,004
Legal and professional charges 4,957 4,214
Auditors remuneration 38 40
Audit fees
For certification including tax audit 1 1
Out of pocket expenses 3 3
Miscellaneous expenses 6,039 5,338
` 146,223 ` 128,999
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Year ended
March 31, 2017 March 31, 2016
Income tax expense as per the statement of profit and loss ` 25,214 ` 25,366
Income tax included in Other comprehensive income on:
Unrealized gains/ (losses) on investment securities 594 42
Unrealized gains/(losses) on cash flow hedging derivatives 962 (260)
Defined benefit plan actuarial gains/(losses) 43 (224)
Total income taxes ` 26,813 ` 24,924
Income tax expense consists of the following:
Year ended
March 31, 2017 March 31, 2016
Current taxes
Domestic ` 21,089 ` 20,221
Foreign 5,412 5,536
` 26,501 ` 25,757
Deferred taxes
Domestic ` (62) ` (506)
Foreign (1,225) 115
` (1,287) ` (391)
Total income taxes ` 25,214 ` 25,366
Income tax expenses are net of reversal of provisions pertaining to earlier periods, amounting to `593 and `1,337
for the year ended March31, 2017 and March 31, 2016, respectively.
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, 2017 March 31, 2016
Profit before taxes ` 110,393 ` 114,937
Enacted income tax rate in India 34.61% 34.61%
Computed expected tax expense ` 38,207 ` 39,779
Effect off:
Income exempt from tax (10,368) (10,750)
Basis differences that will reverse during a tax holiday per period (199) (475)
Income taxed at higher/ (lower) rates (3,530) (3,305)
Income taxes related to prior years (593) (1,337)
Changes in unrecognized deferred tax assets 40 87
Expenses disallowed for tax purpose 1,834 1,729
Others, net (177) (362)
Total income taxes expenses ` 25,214 ` 25,366
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As at
March 31, 2017 March 31, 2016 April 1, 2015
Carry-forward business losses (1) ` 5,513 ` 5,250 ` 2,863
Other liabilities 3,151 3,270 2,546
Allowances for doubtful accounts receivable 2,955 3,039 2,289
Minimum alternate tax 1,520 1,457 1,844
Others - 328 345
` 13,139 ` 13,344 ` 9,887
Property, plant and equipment ` (4,117) `(4,223) ` (3,416)
Amortizable goodwill (4,057) (3,963) (3,347)
Other intangible assets (4,511) (4,665) (1,239)
Interest on bonds and fair value movement of investments (2,245) (814) (448)
Cash flow hedges (1,419) (458) (719)
Deferred revenue (183) (4) (552)
Others (87) - -
` (16,619) ` (14,127) ` (9,721)
Net deferred tax assets/ (liabilities) ` (3480) ` (783) ` 166
Amounts presented in statement of consolidated balance
sheet
Deferred tax assets ` 3,098 ` 4,288 ` 3,367
Deferred tax liabilities ` (6,578) ` (5,071) ` (3,201)
(1)
Includes deferred tax asset recognized on carry forward losses pertaining to business combinations.
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.
Deferred tax liability on the intangible assets identified and carry forward losses on acquisitions is recorded by
an adjustment to goodwill. Other than these, the change in deferred tax assets and liabilities is primarily recorded
in the statement of profit and loss.
In assessing the realizability 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 realizable, however, could be reduced in the near term if the estimates of future
taxable income during the carry-forward period are reduced.
Deferred tax asset amounting to `1,714, `1,782 and `1,858 as at March31, 2017, March 31, 2016 and April 1, 2015,
respectively in respect of unused tax losses have not been recognized by the Company. The tax loss carry-forwards
of `6,763, `6679 and `6,509 as at March31, 2017, March 31, 2016 and April 1, 2015, respectively, relates to certain
subsidiaries on which deferred tax asset has not been recognized by the Company, because there is a lack of
reasonable certainty that these subsidiaries may generate future taxable profits. Approximately, `5,371, `6,117
and `4,971 as at March31, 2017, March 31, 2016 and April1, 2015, respectively, of these tax loss carry-forwards
is not currently subject to expiration dates. The remaining tax loss carry-forwards of approximately,`1,391, `562
and `1,538 as at March31, 2017, March 31, 2016 and April1, 2015, respectively, expires in various years through
fiscal 2037.
The Company has recognized deferred tax assets of ` 5,513, ` 5,250 and ` 2,863 in respect of carry forward losses
of its various subsidiaries as at March31, 2017, March 31, 2016 and April 1, 2015. Managements projections
of future taxable income and tax planning strategies support the assumption that it is probable that sufficient
taxable income will be available to utilize these deferred tax assets.
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Pursuant to the changes in the Indian income tax laws, Minimum Alternate Tax (MAT) has been extended to income in
respect of which deduction is claimed under Section10A, 10B and 10AA of the Income Tax Act, 1961; consequently,
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 was required to pay MAT and accordingly, a deferred
tax asset of `1,520, `1,457 and `1,844 has been recognized in the statement of consolidated balance sheet as
of March31, 2017, March 31, 2016 and April 1, 2015 respectively, which can be carried forward for a period of ten
years from the year of recognition.
A substantial portion of the profits of the Companys India operations are exempt from Indian income taxes being
profits attributable to export operations and profits from units established under the Special Economic Zone Act,
2005 scheme. Units designated in special economic zones providing service on or after April1, 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 2030-31. 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 ` 9,140
and ` 10,212 for the years ended March31, 2017 and March 31, 2016 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 per
share effect of these tax incentives for the years ended March31, 2017 and March 31, 2016 was `3.76 and `4.16
respectively.
Deferred income tax liabilities are recognized for all taxable temporary differences except in respect of taxable
temporary differences associated with investments in subsidiaries 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 cumulative earnings of subsidiaries amounting to `46,905
and `33,920 as of March31, 2017 and 2016, respectively has not been recognized. Further, it is not practicable to
estimate the amount of the unrecognized deferred tax liabilities for these undistributed earnings.
29. Foreign currency translation reserve
The movement in foreign currency translation reserve attributable to equity holders of the Company is summarized
below:
As at
March 31, 2017 March 31, 2016
Balance at the beginning of the year ` 15,069 ` 10,399
Translation difference related to foreign operations, net (3,199) 5,483
Change in effective portion of hedges of net investment in foreign operations 276 (813)
Total change during the year (2,923) 4,670
Balance at the end of the year ` 12,146 ` 15,069
30. Earnings per equity share
A reconciliation of profit for the year and equity shares used in the computation of basic and diluted earnings per
equity share is set out below:
Basic: Basic earnings per share is calculated by dividing the profit attributable to equity shareholders of the
Company by the weighted average number of equity shares outstanding during the year, excluding equity shares
purchased by the Company and held as treasury shares. Equity shares held by controlled Wipro Equity Reward
Trust (WERT) and Wipro Inc. Benefit Trust (WIBT) have been reduced from the equity shares outstanding for
computing basic and diluted earnings per share. During the year ended March 31, 2015, WIBT sold 1.8 million
shares of Wipro Limited
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Year ended
March 31, 2017 March 31, 2016
Profit attributable to equity holders of the Company ` 84,931 ` 89,079
Weighted average number of equity shares outstanding 2,428,540,505 2,456,559,400
Basic earnings per share ` 34.97 ` 36.26
iluted: Diluted earnings per share is calculated by adjusting the weighted average number of equity shares
D
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 Companys 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, 2017 March 31, 2016
Profit attributable to equity holders of the Company ` 84,931 ` 89,079
Weighted average number of equity shares outstanding 2,428,540,505 2,456,559,400
Effect of dilutive equivalent share options 7,133,064 5,130,508
Weighted average number of equity shares for diluted earnings per share 2,435,673,569 2,461,689,908
Diluted earnings per share ` 34.87 ` 36.19
31. Employee stock option
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 three to five years
from the date of grant. Upon vesting, the employees can acquire one equity share for every option. The maximum
contractual term for aforementioned stock option plans is generally ten years.
The stock compensation cost is computed under the intrinsic value method and amortized on accelerated vesting
period. The intrinsic value on the date of grant approximates the fair value. For the year ended March 31, 2017,
the Company has recorded stock compensation expense of ` 1,742 (March 31, 2016 : ` 1,534).
The compensation committee of the board evaluates the performance and other criteria of employees and approves
the grant of options. These options vest with employees over a specified period subject to fulfillment of certain
conditions. Upon vesting, employees are eligible to apply and secure allotment of Companys shares at a price
determined on the date of grant of options. The particulars of options granted under various plans are tabulated
below. (The numbers of shares in the table below are adjusted for any stock splits and bonus shares issues).
Wipro Equity Reward Trust (WERT)
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 Companys Board
Governance, Nomination and Compensation Committee recommends to WERT certain officers and key employees,
to whom WERT grants shares from its holdings at nominal price. Such shares are then held by the employees subject
to vesting conditions. The Companys equity shares held by the controlled trust, which is consolidated as a part
of the Group are classified as Treasury shares. The Company has 13,728,607, 14,829,824 and 14,829,824 treasury
shares as of March 31, 2017 and March 31, 2016 and April 1, 2015, respectively. Treasury shares are recorded at
acquisition cost.
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:
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Finance lease receivables consist of assets that are leased to customers for a contract term ranging from 1 to 7
years, with lease payments due in monthly or quarterly installments. Details of finance lease receivables are given
below:
As at
March 31, 2017 March 31, 2016 April 1, 2015
Gross investment in lease
Not later than one year ` 2,060 ` 2,222 ` 3,685
Later than one year and not later than five years 2,725 3,127 3,108
Later than five years - - 73
Unguaranteed residual values 62 62 63
4,847 5,411 6,929
Unearned finance income (319) (413) (569)
Net investment in finance receivables ` 4,528 ` 4,998 ` 6,360
Present value of minimum lease receivables are as follows:
As at
March 31, 2017 March 31, 2016 April 1, 2015
Present value of investment in lease
Payments receivables ` 4,528 ` 4,998 ` 6,360
Not later than one year 1,854 2,034 3,419
Later than one year and not later than five years 2,616 2,906 2,826
Later than five years - - 57
Unguaranteed residual values 58 58 58
Included in the consolidated balance sheet as follows:
As at
March 31, 2017 March 31, 2016 April 1, 2015
Non-current ` 1,854 ` 2,034 ` 3,461
Current ` 2,674 ` 2,964 ` 2,899
33. Assets taken on lease
Finance leases: The following is a schedule of present value of minimum lease payments under finance leases,
together with the value of the future minimum lease payments as of March 31, 2017, March 31, 2016 and April 1,
2015.
As at
March 31, 2017 March 31, 2016 April 1, 2015
Present value of minimum lease payments
Not later than one year ` 3,623 ` 3,133 ` 1,660
Later than one year and not later than five years 4,657 5,830 3,218
Total present value of minimum lease payments 8,280 8,963 4,878
Add: Amount representing interest 437 578 345
Total value of minimum lease payments ` 8,717 ` 9,541 ` 5,223
Operating leases: The Company has taken office, vehicle and IT equipment under cancellable and non-cancelable
operating lease agreements that are renewable on a periodic basis at the option of both the lessor and the lessee.
The operating lease agreements extend up a maximum of fifteen years from their respective dates of inception
and some of these lease agreements have price escalation clause. Rental payments under such leases were
` 5,953, ` 5,184 and ` 4,727 during the years ended March 31, 2017, March 31, 2016 and April 1, 2015.
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As at
March 31, 2017 March 31, 2016 April 1, 2015
Not later than one year ` 5,040 ` 4,246 ` 3,351
Later than one year and not later than five years 12,976 9,900 6,385
Later than five years 2,760 2,713 2,206
Total ` 20,776 ` 16,859 ` 11,942
34. Dividends and buy back 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.
During the year ended March 31, 2017, the Company has concluded the buyback of 40 million equity shares as
approved by the Board of Directors on April 20, 2016. This has resulted in a total cash outflow of ` 25,000. In line
with the requirement of the Companies Act 2013, an amount of ` 14,254 and ` 10,666 has been utilized from
the share premium account and retained earnings respectively. Further, a capital redemption reserves of ` 80
(representing the nominal value of the shares bought back) has been created as an apportionment from retained
earnings. Consequent to such buy back, share capital has been reduced by ` 80.
The cash dividends paid per equity share were ` 3, ` 12 and ` 10 during the years ended March 31, 2017, March
31, 2016 and April 1, 2015, respectively, including an interim dividend of ` 2, ` 5 and ` 5 for the years ended March
31, 2017, March 31, 2016 and April 1, 2015.
The Board of Directors in their meeting held on April 25, 2017 approved issue of bonus shares in India, in the
proportion of 1:1, i.e. 1 (One) equity share of ` 2 each for every 1 (one) fully paid-up equity share held (including
ADS holders) as on the record date, subject to approval by the Members of the Company through postal ballot/e-
voting. The bonus issue, if approved, will not affect the ratio of ADSs to equity shares, such that each ADS after
the bonus issue will continue to represent one equity share of par value of ` 2 per share.
35. Additional capital disclosures
The key objective of the Companys capital management is to ensure that it maintains a stable capital structure with
the focus on total equity to uphold investor, creditor, and customer confidence and to ensure future development
of its business. The Company focused on keeping strong total equity base to ensure independence, security, as well
as a high financial flexibility for potential future borrowings, if required without impacting the risk profile of the
Company.
The Companys 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/ buy back of equity shares will be balanced with efforts to continue to maintain
an adequate liquidity status.
The capital structure as of March 31, 2017, March 31, 2016 and April 1, 2015 was as follows:
As at % Change % Change
March 31, 2017 March 31, 2016 April 1, 2015 2017-16 2016-15
Equity attributable to the equity
holders of the Company (A) ` 516,702 ` 461,448 ` 403,650 11.97% 14.32%
As percentage of total capital 78 % 79 % 84 %
Current loans, borrowings and
bank overdrafts (1) 122,801 107,860 66,206
Non-current loans, borrowings
and bank overdrafts 19,611 17,361 12,707
Total Loans, borrowings and bank
overdrafts (B) ` 142,412 ` 125,221 ` 78,913 13.73% 58.68%
As percentage of total capital 22 % 21 % 16 %
Total capital (A+B) ` 659,114 ` 586,669 ` 482,563 12.35% 21.57%
(1)
Includes current obligation under borrowings, term loan and financial leases classified under Other current
financial liabilities.
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Loans, borrowings and bank overdrafts represents 22%, 21% and 16% of total capital as of March 31, 2017,
March 31, 2016 and April 1, 2015, respectively. The Company is not subjected to any externally imposed capital
requirements.
36. Commitments and contingencies
Capital commitments: As at March 31, 2017, March 31, 2016 and April 1, 2015 the Company had committed to spend
approximately ` 12,238, ` 10,734 and ` 1,262 respectively, under agreements to purchase/ construct property and
equipment. These amounts are net of capital advances paid in respect of these purchases.
uarantees: As at March 31, 2017, March 31, 2016 and April 1, 2015, performance and financial guarantees provided
G
by banks on behalf of the Company to the Indian Government, customers and certain other agencies amount to
approximately ` 22,023, ` 25,218 and ` 21,235 respectively, as part of the bank line of credit.
Contingencies and lawsuits: The Company is subject to legal proceedings and claims (including tax assessment
orders/ penalty notices) which have arisen in the ordinary course of its business. Some of the claims involve
complex issues and it is not possible to make a reasonable estimate of the expected financial effect, if any, that
will result from ultimate resolution of such proceedings. However, the resolution of these legal proceedings is
not likely to have a material and adverse effect on the results of operations or the financial balance sheet of the
Company. The significant of such matters are discussed below.
In March 2004, the Company received a tax demand for year ended March 31, 2001 arising primarily on account of
denial of deduction under section 10A of the Income Tax Act, 1961 (Act) in respect of profit earned by the Companys
undertaking in Software Technology Park at Bangalore. The same issue was repeated in the successive assessments
for the years ended March 31, 2002 to March 31, 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 Honble High Court. The Honble 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 (SLP) before the Supreme Court of India for the year ended March 31, 2001 to March 31, 2004.
On similar issues for years up to March 31, 2000, the Honble High Court of Karnataka has upheld the claim of the
Company under section 10A of the Act. For the year ended March 31, 2009, the appeals are pending before Income
Tax Appellate Tribunal (Tribunal). For years ended March 31, 2010 and March 31, 2011, the Dispute Resolution
Panel (DRP) allowed the claim of the Company under section 10A of the Act. The Income tax authorities have filed
an appeal before the Tribunal.
The Company received the draft assessment order for the year ended March 31, 2012 in March 2016 with a proposed
demand of ` 4,241 (including interest of ` 1,376). Based on the DRPs direction, allowing majority of the issues in
favor of the Company, the assessing officer has passed the final order with Nil demand. However, on similar issue
for earlier years, the Income Tax authorities have appealed before the Tribunal.
For year ended March 31, 2013 the Company received the draft assessment order in December 2016 with a proposed
demand of ` 4,118 (including interest of ` 1,278), arising primarily on account of section 10AA issues with respect
to exclusion from Export Turnover. The Company has filed an objection before the DRP within the prescribed time
lines.
Considering the facts and nature of disallowance and the order of the appellate authority / Honble High Court of
Karnataka upholding the claims of the Company for earlier years, the Company believes that the final outcome
of the above disputes should be in favor of the Company and there should not be any material adverse impact on
the financial statements.
The contingent liability in respect of disputed demands for excise duty, custom duty, sales tax and other matters
amounts to ` 2,585, ` 2,654 and ` 2,560 as of March 31, 2017, March 31, 2016 and April 1, 2015. However, the
resolution of these legal proceedings is not likely to have a material and adverse effect on the results of operations
or the statement of balance sheet of the Company.
37. Segment information
The Company is organized by the following operating segments; IT Services and IT Products.
IT Services: The IT Services segment primarily consists of IT Service offerings to customers organized by industry
verticals. Effective April 1, 2016, The Company realigned its industry verticals. The Communication Service
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Provider business unit was regrouped from the former Global Media and Telecom (GMT) industry vertical into a
new industry vertical named Communications. The Media business unit from the former GMT industry vertical
has been realigned with the former Retail, Consumer, Transport and Government (RCTG) industry vertical which has
been renamed as Consumer Business Unit industry vertical. Further, the Network Equipment Provider business
unit of the former GMT industry vertical has been realigned with the Manufacturing industry vertical to form the
Manufacturing and Technology industry vertical.
The revised industry verticals are as follows: Banking, Financial Services and Insurance (BFSI), Healthcare and
Lifesciences (HLS), Consumer Business unit (CBU), Energy, Natural Resources & Utilities (ENU), Manufacturing
& Technology (MNT) and Communications (COMM). IT Services segment also includes Others which comprises
dividend income relating to strategic investments, which are presented within Other Income in the statement of
profit and loss. Key service offerings to customers includes software application development and maintenance,
research and development services for hardware and software design, business application services, analytics,
consulting, infrastructure outsourcing services and business process services.
Comparative information has been restated to give effect to the above changes.
IT Products: The Company is a value added reseller of desktops, servers, notebooks, storage products, networking
solutions and packaged software for leading international brands. In certain total outsourcing contracts of the
IT Services segment, the Company delivers hardware, software products and other related deliverables. Revenue
relating to the above items is reported as revenue from the sale of IT Products.
The Chairman and Managing Director of the Company has been identified as the Chief Operating Decision Maker
(CODM) as defined by Ind AS 108, Operating Segments. The Chairman of the Company evaluates the segments
based on their revenue growth and operating income.
Assets and liabilities used in the Companys business are not identified to any of the operating segments, as these
are used interchangeably between segments. Management believes that it is currently not practicable to provide
segment disclosures relating to total assets and liabilities since a meaningful segregation of the available data
is onerous.
Information on reportable segment for the year ended March 31, 2017 is as follows:
Information on reportable segment for the year ended March 31, 2016 is as follows:
Year ended
March 31, 2017 March 31, 2016
India ` 46,585 ` 51,371
Americas 290,719 258,615
Europe 133,909 126,417
Rest of the world 82,996 79,904
Total ` 554,209 ` 516,307
No client individually accounted for more than 10% of the revenues during the three and year ended March 31,
2017 and 2016.
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.
(1)
or the purpose of segment reporting, the Company has included the impact of foreign exchange gains / (losses),
F
net in revenues amounting to ` 3,807 for year ended March 31, 2017 and ` 3,867 for year ended March 31, 2016,
which is reported as a part of Other income in the statement of profit and loss.
Notes:
a) Effective April 1, 2016, CODMs review of the segment results is measured after including the amortization
charge for acquired intangibles to the respective segments. Such costs were classified under reconciling
items till the year ended March 31, 2016 under the Previous GAAP.
b) Reconciling items includes dividend income/ gains/ losses relating to strategic investments, elimination
of inter-segment transactions and other corporate activities.
c) Revenue from sale of traded cloud based licenses is reported as part of IT Services revenues.
d) For evaluating performance of the individual operating segments, share based compensation expense is
allocated on the basis of straight line amortization. The differential impact of accelerated amortization of
stock compensation expense over share based compensation expense allocated to the individual operating
segments is reported in reconciling items.
e) 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.
f) Segment result of HLS industry vertical for the year ended March 31, 2017 is after considering the impact of
impairment charge recorded on certain intangible assets recognized on acquisitions. Also refer note 7.
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g) Net gain from sale of EcoEnergy division is included as part of IT Services segment result for the year ended
March 31, 2017.
h) Operating income of segments is after recognition of stock compensation expense arising from the grant of
options:
Year ended
March 31, 2017 March 31, 2016
IT Services ` 1,550 ` 1,424
IT Products 4 2
Reconciling items 188 108
Total ` 1,742 `1,534
38. Related party relationship and transactions
All the above direct subsidiaries are 100% held by the Company except that the Company holds 66.67% of the
*
equity securities of Wipro Arabia Limited Co and 74% of the equity securities of Wipro Airport IT Services Limited
#
51% of equity securities of Wipro Doha LLC are held by a local shareholder. However, the beneficial interest
in these holdings is with the Company.
The Company controls The Wipro SA Broad Based Ownership Scheme Trust and Wipro SA Broad Based
Ownership Scheme SPV (RF) (PTY) LTD incorporated in South Africa.
(A)
Step Subsidiary details of Wipro Information Technology Austria GmbH, Wipro Europe Limited, Wipro Portugal
S.A, Wipro Digital Aps, CellentGmbh, HPH Holdings Corp. and Appirio, Inc. are as follows:
(7)
Up to January 31, 2017.
(8)
Up to July 18, 2016.
(9)
Effective June 3, 2015.
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Company as a whole. Benefits includes the prorated value of Restricted Stock Units(RSUs) granted to the
personnel, which vest over a period of time.
The following are the significant related party transactions during the year ended March 31, 2017 and 2016:
Year ended
March 31, 2017 March 31, 2016
Sale of services
Wipro Enterprises (P) Limited 67 184
Purchase of services
Azim Premji Foundation 3 2
Asset purchased/ capitalized
Wipro Enterprises (P) Limited 106 231
Dividend paid
Hasham Traders 1,113 4,451
Prazim Traders 1,359 5,435
Zash Traders 1,355 5,419
Azim Premji Trust 1,228 5,157
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Year ended
March 31, 2017 March 31, 2016
Rent paid
Wipro Enterprises (P) Limited - 15
Yasmeen Premji 6 6
Rental income
Wipro Enterprises (P) Limited 38 36
Remuneration paid to key management personnel
Azim Premji 8 22
T K Kurien * 97 137
Abidali Z. Neemuchwala 136 120
Rishad Azim Premji 17 22
JatinPravinchandra Dalal 45 38
M Sanaulla Khan 12 9
* T
K Kurien, who was Executive Vice Chairman of the Company retired from the services of the Company and the
Board effective January 31, 2017. Compensation disclosed above is for the period from April 1, 2016 to January
31, 2017.
39. Corporate Social Responsibility
a. Gross amount required to be spend by the Wipro during the year ` 1,764 (March 31, 2016: ` 1,560).
b. Amount spent during the year on:
Name of the Subsidiary Net Share in Profit or Share in Other Share in total
Asset Loss comprehensive Comprehensive
income income
As % of Amount As % of Amount As % of Amount As % of Amount
total in ` total in ` total in ` total in `
Parent
Wipro Limited 79.4% 467,056 123.4% 81,617 67.9% 5,154 117.7% 86,771
Indian Subsidiaries
Wipro Trademarks Holding Limited 0.0% 40 0.0% 2 0.0% - 0.0% 2
Wipro Overseas IT Services Pvt. Ltd. 0.0% - 0.0% - 0.0% - 0.0% -
Wipro Travel Services Limited 0.0% 115 0.0% 3 0.0% - 0.0% 3
Wipro Airport IT Services Limited 0.0% 133 0.1% 38 0.0% - 0.1% 38
Appirio India Cloud Solutions Private 0.0% 269 0.1% 62 0.0% (2) 0.1% 60
Limited
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Name of the Subsidiary Net Share in Profit or Share in Other Share in total
Asset Loss comprehensive Comprehensive
income income
As % of Amount As % of Amount As % of Amount As % of Amount
total in ` total in ` total in ` total in `
Foreign Subsidiaries
Wipro LLC 0.4% 2,369 -7.4% (4,885) 29.8% 2,260 -3.6% (2,625)
Wipro Gallagher Solutions, Inc. 0.2% 1,439 -0.2% (115) 2.0% 152 0.1% 37
Opus Capital Markets Consultants LLC 0.1% 770 0.1% 56 -0.2% (17) 0.1% 39
Wipro Promax Analytics Solutions LLC 0.0% (162) -0.1% (81) 0.1% 4 -0.1% (77)
Infocrossing, Inc. -1.6% (9,200) 1.4% 916 -1.2% (88) 1.1% 828
Wipro Insurance Solutions LLC 0.0% 104 0.1% 43 0.0% (3) 0.1% 40
Wipro Data Centre and Cloud Services, 2.1% 12,560 0.0% 7 -9.0% (685) -0.9% (678)
Inc.
Wipro IT Services, Inc. -2.1% (12,455) -23.1% (15,296) 23.9% 1,814 -18.3% (13,482)
HPH Holdings Corp. 1.5% 8,883 0.0% (1) -1.0% (79) -0.1% (80)
Appirio, Inc. 0.5% 3,096 -0.1% (43) -0.8% (59) -0.1% (102)
Wipro Japan KK 0.1% 772 0.3% 211 -0.3% (23) 0.3% 188
Wipro Shanghai Limited 0.1% 319 0.1% 99 -0.3% (26) 0.1% 73
Wipro Holdings (Mauritius) Limited 0.5% 3,189 -0.6% (426) 0.9% 68 -0.5% (358)
Wipro Holdings UK Limited 0.5% 3,120 -0.7% (443) -12.3% (932) -1.9% (1,375)
Wipro Information Technology Austria 0.0% 34 0.0% 20 0.0% (1) 0.0% 19
GmbH
Wipro Digital Aps 0.1% 352 -2.0% (1,325) 5.8% 439 -1.2% (886)
Wipro Europe Limited 0.1% 591 0.3% 192 0.0% - 0.3% 192
Wipro Financial Services UK Limited 0.0% (35) 0.0% (2) 0.1% 6 0.0% 4
Wipro Cyprus Private Limited 4.9% 28,850 -0.5% (300) 1.1% 80 -0.3% (220)
Wipro Doha LLC 0.0% 67 0.0% 13 0.0% (1) 0.0% 12
Wipro Technologies S.A DE C.V -0.1% (422) -0.7% (458) 0.0% 2 -0.6% (456)
Wipro BPO Philippines LTD. Inc 0.5% 3,033 2.4% 1,608 -3.8% (291) 1.8% 1,317
Wipro Holdings Hungary 5.9% 34,658 -0.3% (175) 0.0% - -0.2% (175)
KorltoltFelelssgTrsasg
Wipro Holdings Investment 3.7% 21,870 -0.3% (172) 0.0% - -0.2% (172)
KorltoltFelelssgTrsasg
Wipro Technologies SA 0.0% 96 0.1% 61 -0.1% (6) 0.1% 55
Wipro Information Technology Egypt 0.0% (108) -0.1% (90) 1.3% 98 0.0% 8
SAE
Wipro Arabia Co. Limited 1.3% 7,502 1.1% 731 -3.2% (241) 0.7% 490
Wipro Poland Sp. Z.o.o 0.0% 264 0.2% 120 -0.2% (17) 0.1% 103
Wipro IT Services Poland Sp. z o. o 0.1% 371 0.3% 166 -0.3% (21) 0.2% 145
Wipro Technologies Australia Pty Ltd. -0.1% (386) 0.2% 119 0.5% 37 0.2% 156
Wipro Corporate Technologies Ghana 0.0% 31 0.0% (3) 0.0% 2 0.0% (1)
Limited
Wipro Technologies South Africa 0.1% 327 0.4% 259 0.2% 13 0.4% 272
(Proprietary) Limited
Wipro Technologies Nigeria Limited 0.0% 54 0.1% 37 -0.3% (19) 0.0% 18
Wipro IT Services Ukraine LLC 0.0% (2) 0.0% (2) 0.0% - 0.0% (2)
Wipro Information Technology 0.5% 2,665 0.0% 3 0.4% 34 0.1% 37
Netherlands BV.
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Name of the Subsidiary Net Share in Profit or Share in Other Share in total
Asset Loss comprehensive Comprehensive
income income
As % of Amount As % of Amount As % of Amount As % of Amount
total in ` total in ` total in ` total in `
Wipro Portugal S.A. 0.6% 3,799 0.3% 224 -3.6% (276) -0.1% (52)
Wipro Technologies Limited, Russia 0.0% 177 -0.1% (56) 0.4% 29 0.0% (27)
Wipro Technology Chile SPA 0.0% 12 0.1% 49 0.0% (2) 0.1% 47
Wipro Solutions Canada Limited -0.8% (4,806) 1.0% 691 3.7% 277 1.3% 968
Wipro Information Technology 0.0% (43) 0.0% (13) 0.0% (2) 0.0% (15)
Kazakhstan LLP
Wipro Technologies W.T. Sociedad 0.0% - 0.0% - 0.0% - 0.0% -
Anonima
Wipro Outsourcing Services (Ireland) 0.1% 302 -0.1% (70) -0.4% (28) -0.1% (98)
Limited
Wipro Technologies Norway AS 0.0% 8 0.0% (10) 0.0% - 0.0% (10)
Wipro Technologies VZ, C.A. 0.0% - 0.0% - 0.0% - 0.0% -
Wipro Technologies Peru S.A.C 0.0% 66 0.0% 28 0.0% - 0.0% 28
Wipro Technologies SRL 0.1% 694 0.6% 428 -0.9% (67) 0.5% 361
PT WT Indonesia 0.1% 342 0.1% 91 -0.1% (11) 0.1% 80
Wipro Australia Pty Limited 0.0% (1) 0.2% 105 0.0% 1 0.1% 106
Wipro (Thailand) Co Limited 0.1% 333 0.1% 71 0.0% - 0.1% 71
Wipro Bahrain Limited WLL 0.1% 404 0.3% 173 -0.1% (11) 0.2% 162
Wipro Gulf LLC 0.1% 410 0.3% 222 -0.1% (7) 0.3% 215
Rainbow Software LLC 0.0% (1) 0.0% (1) 0.0% - 0.0% (1)
CellentGmbh, Germany 0.3% 1,495 0.2% 100 -0.5% (39) 0.1% 61
CellentMittelstandsberatung GmbH 0.0% 214 0.1% 41 -0.2% (18) 0.0% 23
CellentGmbh, Austria 0.1% 372 0.0% 5 -0.2% (18) 0.0% (13)
Wipro Networks Pte Limited 0.3% 1,874 0.1% 92 -0.8% (57) 0.0% 35
Wipro (Dalian) Limited 0.0% 156 -0.1% (98) -0.2% (12) -0.1% (110)
Wipro Technologies SDN BHD 0.0% 2 0.0% 2 0.0% - 0.0% 2
Wipro Chengdu Limited 0.0% (46) 0.0% 28 0.1% 5 0.0% 33
Wipro Technologies Austria GmbH 0.0% (131) 0.1% 80 -0.1% (6) 0.1% 74
New Logic Technologies SARL 0.0% 54 0.0% 14 -0.1% (4) 0.0% 10
Wipro UK Limited 0.2% 1,303 2.8% 1,869 -0.1% (8) 2.5% 1,861
Wipro Retail UK Limited 0.0% 174 0.1% 49 -0.4% (27) 0.0% 22
Wipro do BrasilTechnologiaLtda 0.2% 1,048 0.3% 195 1.2% 91 0.4% 286
Wipro Technologies Gmbh -0.1% (638) -0.3% (193) 0.7% 52 -0.2% (141)
Wipro Do BrasilSistemetas De 0.0% 33 0.0% - 0.1% 4 0.0% 4
Informatica Ltd.
Designit A/S 0.0% 274 -0.1% (61) -0.3% (23) -0.1% (84)
Designit Denmark A/S 0.0% (188) -0.4% (297) 0.1% 4 -0.4% (293)
Designit Munchen GmbH 0.0% (87) 0.0% 25 0.1% 8 0.0% 33
Designit Oslo A/S 0.0% 64 0.1% 57 -0.1% (4) 0.1% 53
Designit Sweden AB 0.0% (24) 0.0% (16) 0.0% 2 0.0% (14)
Designit T.L.V Ltd. 0.0% 87 0.0% 30 0.0% 1 0.0% 31
Designit Tokyo Ltd. 0.0% (60) -0.1% (34) 0.0% 3 0.0% (31)
Denextep Spain Digital, S.L 0.0% 95 0.0% (2) -0.1% (10) 0.0% (12)
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Name of the Subsidiary Net Share in Profit or Share in Other Share in total
Asset Loss comprehensive Comprehensive
income income
As % of Amount As % of Amount As % of Amount As % of Amount
total in ` total in ` total in ` total in `
Designit Colobia S A S 0.0% 15 0.0% 23 0.0% - 0.0% 23
Designit Peru S.A.C 0.0% (10) 0.0% (12) 0.0% - 0.0% (12)
Front worx Informations technologie 0.0% 86 0.0% 13 -0.1% (7) 0.0% 6
Gmbh
Healthplan Services Insurance Agency, 0.2% 1,355 0.1% 99 -0.3% (26) 0.1% 73
Inc.
Healthplan Services, Inc. -0.7% (4,062) -0.6% (428) 0.9% 69 -0.5% (359)
Appirio K.K. 0.0% (260) -0.1% (86) 0.2% 16 -0.1% (70)
Topcoder, Inc. 0.0% (35) 0.0% - 0.0% 2 0.0% 2
Appirio Ltd. 0.0% 5 0.0% (20) 0.8% 57 0.1% 37
Appirio GmbH 0.0% 2 0.0% - 0.0% - 0.0% -
Appirio Ltd (UK) -0.1% (553) 0.1% 47 0.3% 24 0.1% 71
Saaspoint, Inc. 0.0% 3 0.0% - 0.0% - 0.0% -
Appirio Pvt Ltd 0.0% (27) 0.0% (4) 0.0% 1 0.0% (3)
KI Management Inc. 0.0% - 0.0% - 0.0% - 0.0% -
Wipro SA Broad Based Ownership 0.1% 777 0.0% 19 0.0% - 0.0% 19
Scheme SPV (RF) (PTY) LTD
Trust
Wipro Equity Reward Trust 0.2% 1,073 0.1% 97 0.0% - 0.1% 97
Wipro Inc. Benefit Trust 0.0% - 0.0% 6 0.0% - 0.0% 6
Wipro SA Broad Based Ownership 0.0% 124 0.0% 17 -0.6% (49) 0.0% (32)
Scheme Trust
Total 100.0% 588,489 100.0% 66,155 100.0% 7,586 100.0% 73,741
Non-controlling interest (2,391) (248) 69 (179)
Adjustment arising out of (69,396) 19,024 (5,402) 13,622
consolidation
Grand Total 516,702 84,931 2,253 87,184
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
Bengaluru Bengaluru
June 02, 2017 June 02, 2017
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
Defining new
Company is presenting summarised financial information about individual subsidiaries as at March 31, 2017/ December 31, 2016.
Information relating to Subsidiaries as at March 31, 2017/ December 31, 2017
PART -A - Subsidiaries
Sr. Name of the Subsidiary Date of Reporting Reporting Exchange Share Reserves Total Total Li- Invest- % of Turnover Profit Provision Profit Proposed
No. becoming the period Currency rate as on capital & Assets abilities ments Holding (i) before for after Dividend
subsidiary/ March, 31 Surplus exclud- (b) taxation taxation taxation (incl.
acquisition 2017/ Dec ing (6) & (i) (i) (i) dividend
Highlights
Limited
5 Wipro Solutions Canada 16-Aug-14 31-Mar-17 CAD 49 1,778 (6,584) 5,313 10,119 - 100% 9,042 1,175 483 692 -
Limited
6 Infocrossing, Inc. (f) 20-Sep-07 31-Mar-17 USD 65 * (3,115) 1,855 4,970 - 100% 6,174 1,526 611 916 -
7 Wipro BPO Philippines 16-Oct-07 31-Mar-17 PHP 1.29 244 2,780 3,763 739 - 100% 5,437 1,637 57 1,580 -
Ltd Inc
8 Cellent Gmbh, Germany 15-Jan-16 31-Mar-17 EUR 69 389 1,106 2,357 862 - 100% 4,904 119 18 100 -
9 Appirio, Inc. (e ) 23-Nov-16 31-Mar-17 USD 65 * 1,157 4,926 3,769 63 100% 4,712 (68) (25) (43) -
10 Wipro do Brasil 29-May-01 31-Mar-17 BRL 21 712 336 2,361 1,313 - 100% 3,980 295 100 195 -
Board
Technologia Ltda
11 Wipro Technologies 2-Nov-10 31-Mar-17 ZAR 5 * 326 1,727 1,401 - 100% 3,832 239 52 187 56
South Africa
(Proprietary) Limited
12 Wipro Technologies 30-Jun-06 31-Mar-17 EUR 69 2 (345) 5,072 5,415 - 100% 3,702 (172) 15 (187) -
Gmbh
13 Opus Capital Market 14-Jan-14 31-Mar-17 USD 65 66 705 1,599 829 - 100% 3,621 266 259 8 -
Consultant LLC
14 Wipro Networks Pte 15-Dec-99 31-Mar-17 USD 65 1,451 65 2,373 857 - 100% 3,167 (14) (28) 14 -
Limited
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15 Wipro Holdings UK 9-Dec-02 31-Mar-17 GBP 81 6,430 (3,525) 7,389 4,484 - 100% 2,597 (508) 105 (613) -
Standalone
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Limited
16 Wipro IT Services Poland 6-Apr-12 31-Mar-17 PLN 16 * 371 1,897 1,526 - 100% 2,509 248 82 166 -
Sp. z o. o
17 Wipro Technologies SRL 17-Aug-06 31-Dec-16 RON 16 170 590 1,179 418 - 97.28% 2,222 364 62 302 -
18 Wipro UK Limited 1-Jun-11 31-Mar-17 GBP 81 57 1,263 1,536 216 - 100% 2,190 1,979 (5) 1,983 -
19 Wipro Gallagher 1-Jul-08 31-Mar-17 USD 65 1,904 (303) 4,612 3,011 264 100% 1,901 (263) (148) (115) -
Solutions, Inc.
20 Wipro Technologies S.A 13-Jun-07 31-Mar-17 MXN 3 41 (463) 1,234 1,656 - 100% 1,891 (458) - (458) -
DE C.V
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21 Wipro Gulf LLC 1-Jun-11 31-Mar-17 OMR 168 17 393 873 463 - 100% 1,728 254 32 222 -
under Ind AS
index page
Consolidated
22 Wipro Technologies 30-Apr-12 31-Mar-17 AUD 50 * (411) 1,241 1,652 - 100% 1,514 119 - 119 -
Australia Pty Ltd.
23 Wipro Portugal S.A. 30-Jun-06 31-Mar-17 EUR 69 3 3,428 4,246 816 - 100% 1,446 279 47 232 -
24 Cellent Gmbh, Austria 15-Jan-16 31-Mar-17 EUR 69 5 367 652 280 - 100% 1,248 24 18 5 -
25 Wipro Information 29-Dec-05 31-Mar-17 EUR 69 1,927 (1,893) 596 562 - 100% 1,127 21 1 20 -
Technology Austria GmbH
under IFRS
Financials
262
Consolidated
Sr. Name of the Subsidiary Date of Reporting Reporting Exchange Share Reserves Total Total Li- Invest- % of Turnover Profit Provision Profit Proposed
Defining new
No. becoming the period Currency rate as on capital & Assets abilities ments Holding (i) before for after Dividend
subsidiary/ March, 31 Surplus exclud- (b) taxation taxation taxation (incl.
acquisition 2017/ Dec ing (6) & (i) (i) (i) dividend
31, 2016 (7) tax)
(i)
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16)
26 Wipro Holdings Hungary 17-Sep-07 31-Dec-16 USD 68 1,868 34,367 36,254 19 191 100% 1,120 1,108 31 1,077 -
Korltolt Felelssg
Trsasg
Highlights
27 Wipro Shanghai Limited 27-Apr-04 31-Dec-16 RMB 10 105 188 778 485 - 100% 995 47 - 47 -
28 Wipro Europe Limited 1-Jun-11 31-Mar-17 GBP 81 8 806 814 - - 100% 988 988 - 988 -
29 PT WT Indonesia 24-Jul-09 31-Mar-17 IDR 0.005 11 326 866 529 - 100% 810 122 39 83 -
30 Wipro Information 30-Jun-06 31-Mar-17 EUR 69 1,653 1,012 4,455 1,790 - 100% 795 (5) (8) 3 -
Technology Netherlands
BV.
31 Cellent 15-Jan-16 31-Mar-17 EUR 69 2 212 330 116 - 100% 702 59 18 41 -
Mittelstandsberatung
GmbH
Letters
32 Appirio India Cloud 23-Nov-16 31-Mar-17 INR 1 8 261 411 142 - 100% 701 103 (5) 108 -
Solutions Private Limited
33 Wipro Doha LLC 26-Feb-14 31-Mar-17 QAR 18 4 64 558 490 - 49% 638 24 3 22 -
34 Wipro Outsourcing 14-May-12 31-Mar-17 EUR 69 * 316 453 136 - 100% 584 (70) (5) (65) -
Services (Ireland)
Limited
35 Designit Oslo A/S 9-Jul-15 31-Mar-17 NOK 8 1 64 229 164 - 100% 581 75 18 57 -
36 Wipro Airport IT Services 22-Oct-09 31-Mar-17 INR 1 50 83 1,043 910 - 74% 562 59 21 38 -
Limited
37 Healthplan Services 29-Feb-16 31-Mar-17 USD 65 * 1,355 1,391 36 - 100% 553 132 33 99 -
Board
44 Wipro Cyprus Private 27-Apr-06 31-Mar-17 INR 1 13 28,850 36,542 7,679 - 100% 470 104 181 (77) -
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Limited
45 Wipro Japan KK 1-May-98 31-Mar-17 JPY 0.58 263 509 941 169 - 100% 458 261 50 211 -
46 Wipro Technologies SA 22-Apr-08 31-Mar-17 ARS 4 175 (79) 353 257 - 100% 413 93 33 61 -
47 Wipro Technologies 15-Aug-12 31-Mar-17 NGN 0.21 3 51 416 362 - 100% 412 69 33 37 -
Nigeria Limited
48 Wipro Technologies 29-Dec-05 31-Mar-17 EUR 69 1,845 (1,971) 147 272 - 100% 394 80 - 80 -
Austria GmbH
49 Designit Munchen GmbH 9-Jul-15 31-Mar-17 EUR 69 2 (89) 117 204 - 100% 394 25 - 25 -
50 Appirio Ltd (UK) 23-Nov-16 31-Mar-17 GBP 81 * (553) 177 730 - 100% 373 47 - 47 -
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51 Wipro Technology Chile 19-Dec-11 31-Mar-17 CLP 0.10 100 (88) 264 252 - 100% 352 49 - 49 -
under Ind AS
index page
Consolidated
SPA
52 Wipro (Dalian) Limited 25-Dec-15 31-Dec-16 RMB 10 258 (25) 500 267 - 100% 302 (26) - (26) -
53 Wipro (Thailand) Co 30-Jul-07 31-Mar-17 THB 2 194 108 331 29 - 100% 278 108 38 70 -
Limited
54 Designit T.L.V Ltd. 9-Jul-15 31-Mar-17 ILS 18 * 75 150 75 - 100% 267 34 11 23 -
55 Designit Colobia S A S 21-Dec-15 31-Dec-16 COP 0.02 5 9 71 58 - 100% 208 14 5 9 -
under IFRS
Financials
263
Consolidated
Sr. Name of the Subsidiary Date of Reporting Reporting Exchange Share Reserves Total Total Li- Invest- % of Turnover Profit Provision Profit Proposed
Defining new
No. becoming the period Currency rate as on capital & Assets abilities ments Holding (i) before for after Dividend
subsidiary/ March, 31 Surplus exclud- (b) taxation taxation taxation (incl.
acquisition 2017/ Dec ing (6) & (i) (i) (i) dividend
31, 2016 (7) tax)
(i)
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16)
56 Frontworx Informations 15-Jan-16 31-Mar-17 EUR 69 87 (1) 113 27 - 100% 188 16 3 13 -
technologie Gmbh
57 Designit Sweden AB 9-Jul-15 31-Mar-17 SEK 7 1 2 72 70 - 100% 175 (14) - (14) -
Highlights
58 Wipro Technologies Peru 15-Aug-12 31-Mar-17 PEN 20 24 42 166 100 - 100% 157 40 12 28 -
S.A.C
59 Appirio Ltd 23-Nov-16 31-Mar-17 EUR 69 68 (64) 593 588 - 100% 151 (21) * (20) -
60 Wipro Australia Pty 19-Dec-11 31-Mar-17 AUD 50 * (1) 261 262 - 100% 121 105 * 105 -
Limited
61 Wipro Information 27-Sep-06 31-Mar-17 KZT 0.21 9 (52) 99 142 - 100% 106 (13) - (13) -
Technology Kazakhstan
LLP
62 Designit Tokyo Ltd. 9-Jul-15 31-Mar-17 JPY 0.58 9 (69) 63 123 - 100% 105 (34) 1 (34) -
Letters
BHD
69 Wipro Do Brasil 22-Aug-14 31-Mar-17 BRL 21 33 * 70 37 - 100% 28 * * * -
Sistemetas De
Informatica Ltd
70 Wipro Technologies 8-Feb-08 31-Mar-17 RUB 1.15 * 177 293 116 - 100% 23 (56) - (56) -
Limited, Russia
71 New Logic Technologies 29-Dec-05 31-Mar-17 EUR 69 46 8 60 5 - 100% 21 11 (4) 14 -
SARL
72 Wipro SA Broad Based 17-Jan-14 31-Mar-17 ZAR 5 669 3 687 15 - 100% 17 17 - 17 13
Ownership Scheme SPV
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78 Topcoder, Inc. 23-Nov-16 31-Mar-17 USD 65 1,193 (1,228) 231 266 - 100% * - - - -
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under Ind AS
index page
Consolidated
Consolidated
Sr. Name of the Subsidiary Date of Reporting Reporting Exchange Share Reserves Total Total Li- Invest- % of Turnover Profit Provision Profit Proposed
Defining new
No. becoming the period Currency rate as on capital & Assets abilities ments Holding (i) before for after Dividend
subsidiary/ March, 31 Surplus exclud- (b) taxation taxation taxation (incl.
acquisition 2017/ Dec ing (6) & (i) (i) (i) dividend
31, 2016 (7) tax)
(i)
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16)
84 Wipro IT Services Ukraine 6-Oct-14 31-Mar-17 UAH 2 * (2) * 2 - 100% * (2) - (2) -
LLC
85 Wipro Corporate 9-Jul-14 31-Mar-17 GHS 15 35 (4) 33 1 - 100% * (3) - (3) -
Highlights
Technology Ghana
Limited
86 Wipro Financial Services 30-Apr-12 31-Mar-17 GBP 81 * (36) 9 45 - 100% * (2) 2 (4) -
UK Limited (g)
87 Wipro Technologies 31-Dec-12 31-Mar-17 NOK 8 38 (30) 9 1 - 100% * (7) - (7) -
Norway AS
88 Wipro Information 22-May-08 31-Mar-17 EGP 4 22 (130) 26 134 - 100% * (90) - (90) -
Technology Egypt SAE
89 Wipro Holdings 23-Mar-17 31-Mar-17 INR 1 1 21,869 21,870 * - 100% * (172) - (172) -
Letters
Investment Korltolt
Felelssg Trsasg
90 Designit Denmark A/S 9-Jul-15 31-Mar-17 DKK 9 11 9 460 440 - 100% * (425) (46) (379) -
91 Designit A/S 9-Jul-15 31-Mar-17 DKK 9 93 104 791 594 - 100% * (444) (19) (425) -
92 Wipro Holdings 19-Dec-02 31-Mar-17 USD 65 6,351 (3,161) 3,191 2 - 100% * (426) - (426) -
(Mauritius) Limited
93 Wipro Digital Aps 29-Jun-15 31-Mar-17 DKK 9 * (182) 3,102 3,283 - 100% * (1,549) (1) (1,548) -
Name of associates/ Latest Date on which No. of Shares held Amount of Extend of Description Reason why Net worth attributable Profit/Loss for the year
Joint Ventures audited the Associate by the Company Investment Holding (In of how there the associate to shareholding as per Considered in Not
Balance was associated in Associate on in percentage) is significant is not latest audited Balance Consolidation Considered in
Sheet Date or Acquired the year end Associates influence consolidated Sheet Consolidation
NIL
Note:
(a) Wipro Technologies W.T. Sociedad Anonima and KI Management Inc. are yet to commence operations
(b) Investments exclude investments in subsidiaries
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(c) Wipro Promax IP Pty Limited and Wipro Promax Holdings Limited were deregistered effective May 7, 2016, hence financial information has not been included in the above list.
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under Ind AS
(d) 3D networks UK Limited has been liquidated effective July 14, 2016, hence the financial information has not been included in the above list.
(e) Further, effective March 31, 2017 - Knowledge Infusion LLC was merged with and into Appirio Inc., Harrington Health Services, Inc. was merged with and into HealthPlan Services, Inc.
and HealthPlan Holdings, Inc. was merged with and into HPH Holdings Corp. Hence the financial information of Appirio Inc., HealthPlan Services, Inc. and HPH Holdings Corp includes
the data of their respective merged entities.
(f) Data Centre business operations of Info crossing Inc have been transferred to Wipro Data Center and Cloud Services, Inc. effective April 1, 2016.
(g) Wipro Promax Analytics Solutions (Europe) Limited was renamed as Wipro Financial services UK Limited.
(h) Indian rupee equivalents of the figures given in foreign currencies in the accounts of the subsidiary companies, are based on the exchange rates as of the respective reporting period end
dates.
(i) Converted at yearly average exchange rate
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Consolidated
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KPMG
Bangalore, India
June 02, 2017
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No. of shares* capital premium earnings reserve reserve reserve reserves Trust the Company interest equity
As at April 1, 2014................................................... 2,466,317,273 4,932 12,664 314,952 1,021 10,060 499 (87) (542) 343,499 1,387 344,886
Total comprehensive income for the year
Profit for the year.................................................... 86,528 86,528 531 87,059
Other comprehensive income.................................. 1,189 3,051 742 4,982 50 5,032
Total comprehensive income for the year 86,528 1,189 3,051 742 91,510 581 92,091
Letters
payment..................................................................
Sale of treasury shares, gain................................... 458 542 1,000 1,000
Total transactions with owners of the Company 2,725,765 5 1,367 (29,232) 291 542 (27,027) (322) (27,349)
As at March 31, 2015............................................... 2,469,043,038 4,937 14,031 372,248 1,312 11,249 3,550 655 407,982 1,646 409,628
The accompanying notes form an integral part of these consolidated financial statements.
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under IFRS
Financials
270
Consolidated
WIPRO LIMITED AND SUBSIDIARIES
Defining new
Share Share Retained payment translation hedging Other holders of controlling Total
No. of shares* capital premium earnings reserve reserve reserve reserves the Company interest equity
As at April 1, 2015.................................................... 2,469,043,038 4,937 14,031 372,248 1,312 11,249 3,550 655 407,982 1,646 409,628
Adjustment on adoption of IFRS 9 (net of tax).......... (770) (31) (801) (12) (813)
Adjusted balances as at April 1, 2015....................... 2,469,043,038 4,937 14,031 371,478 1,312 11,249 3,550 624 407,181 1,634 408,815
Total comprehensive income for the year
Profit for the year..................................................... 89,075 89,075 492 89,567
Other comprehensive income................................... 4,867 (1,640) (408) 2,819 86 2,905
Letters
Total comprehensive income for the year 89,075 4,867 (1,640) (408) 91,894 578 92,472
Transaction with owners of the Company, recognized
directly in equity
Contributions by and distributions to owners of the
Company
Cash dividend paid (including dividend tax thereon). (35,494) (35,494) (35,494)
Issue of equity shares on exercise of options........... 1,670,252 4 611 (611) 4 4
Board
The accompanying notes form an integral part of these consolidated financial statements.
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under IFRS
Financials
271
Consolidated
WIPRO LIMITED AND SUBSIDIARIES
Defining new
No. of shares* capital premium earnings reserve reserve reserve reserves the Company interest equity
As at April 1, 2016............................................... 2,470,713,290 4,941 14,642 425,735 2,229 16,116 1,910 505 466,078 2,224 468,302
Adjustment on adoption of IFRS 9 (net of tax)..... (617) (289) (906) (12) (918)
Adjusted balance as at April 1, 2016.................... 2,470,713,290 4,941 14,642 425,118 2,229 16,116 1,910 216 465,172 2,212 467,384
Total comprehensive income for the year
Profit for the year................................................ 84,895 84,895 248 85,143
Other comprehensive income.............................. (3,009) 3,996 1,180 2,167 (69) 2,098
Letters
Total comprehensive income for the year........... 84,895 (3,009) 3,996 1,180 87,062 179 87,241
Transaction with owners of the Company,
recognized directly in equity
Contributions by and distributions to owners of
the Company
Cash dividend paid (including dividend tax
thereon).............................................................. (8,734) (8,734) (8,734)
Issue of equity shares on exercise of options...... 187,275 ^ 81 (81)
Board
under Ind AS
* Includes 14,829,824, 14,829,824 and 13,728,607 treasury shares held as of March 31, 2015, 2016 and 2017 respectively by a controlled trust. 1,101,217 shares have been transferred by the
controlled trust to eligible employees on exercise of options during the year ended March 31, 2017
# refer note 18
^ Value is less than `1
The accompanying notes form an integral part of these consolidated financial statements
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under IFRS
Financials
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Consolidated
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b) Impairment testing: Goodwill and intangible assets defined benefit obligation is highly sensitive to changes
recognised on business combination are tested for in these assumptions. All assumptions are reviewed at
impairment at least annually and when events occur or each reporting date.
changes in circumstances indicate that the recoverable g) Expected credit losses on financial assets: On
amount of the asset or the cash generating unit to application of IFRS 9, the impairment provisions of
which these pertain is less than the carrying value. The financial assets are based on assumptions about risk of
recoverable amount of the asset or the cash generating default and expected timing of collection. The Company
units is higher of value-in-use and fair value less cost uses judgment in making these assumptions and selecting
of disposal. The calculation of value in use of a cash the inputs to the impairment calculation, based on the
generating unit involves use of significant estimates Companys past history of collections, customers credit-
and assumptions which includes turnover and earnings worthiness, existing market conditions as well as forward
multiples, growth rates and net margins used to calculate looking estimates at the end of each reporting period.
projected future cash flows, risk-adjusted discount rate,
future economic and market conditions. h) Measurement of fair value of non-marketable equity
investments: These instruments are initially recorded
c) Income taxes: The major tax jurisdictions for the at cost and subsequently measured at fair value. Fair
Company are India and the United States of America. value of investments is determined using the market
Significant judgments are involved in determining and income approaches. The market approach includes
the provision for income taxes including judgment on the use of financial metrics and ratios of comparable
whether tax positions are probable of being sustained in companies, such as revenue, earnings, comparable
tax assessments. A tax assessment can involve complex performance multiples, recent financial rounds and the
issues, which can only be resolved over extended time level of marketability of the investments. The selection of
periods. comparable companies requires management judgment
d) Deferred taxes: Deferred tax is recorded on temporary and is based on a number of factors, including comparable
differences between the tax bases of assets and liabilities company sizes, growth rates, and development stages. The
and their carrying amounts, at the rates that have been income approach includes the use of discounted cash flow
enacted or substantively enacted at the reporting model, which requires significant estimates regarding the
date. The ultimate realization of deferred tax assets is investees revenue, costs, and discount rates based on
dependent upon the generation of future taxable profits the risk profile of comparable companies. Estimates of
during the periods in which those temporary differences revenue and costs are developed using available historical
and tax loss carry-forwards become deductible. The and forecast data.
Company considers the expected reversal of deferred tax i) Other estimates: The share based compensation
liabilities and projected future taxable income in making expense is determined based on the Companys estimate
this assessment. The amount of the deferred tax assets of equity instruments that will eventually vest. Fair
considered realizable, however, could be reduced in the valuation of derivative hedging instruments designated as
near term if estimates of future taxable income during cash flow hedges involves significant estimates relating
the carry-forward period are reduced. to the occurrence of forecast transaction.
e) Business combination: In accounting for business 3. Significant accounting policies
combinations, judgment is required in identifying whether
an identifiable intangible asset is to be recorded separately (i) Basis of consolidation
from goodwill. Additionally, estimating the acquisition Subsidiaries
date fair value of the identifiable assets (including useful
life estimates) and liability acquired, and contingent The Company determines the basis of control in line with
consideration assumed involves management judgment. the requirements of IFRS 10, Consolidated Financial
These measurements are based on information available Statements.
at the acquisition date and are based on expectations Subsidiaries are entities controlled by the Group. The
and assumptions that have been deemed reasonable by Group controls an entity when it is exposed to, or has rights
management. Changes in these judgments, estimates, to, variable returns from its involvement with the entity and
and assumptions can materially affect the results of has the ability to affect those returns through its power
operations. over the entity. The financial statements of subsidiaries
f) Defined benefit plans and compensated absences: are included in the consolidated financial statements from
The cost of the defined benefit plans, compensated the date on which control commences until the date on
absences and the present value of the defined benefit which control ceases.
obligations are based on actuarial valuation using the All intra-Group balances, transactions, income and
projected unit credit method. An actuarial valuation expenses are eliminated in full on consolidation.
involves making various assumptions that may differ
from actual developments in the future. These include Non-controlling interest
the determination of the discount rate, future salary Non-controlling interests in the net assets (excluding
increases and mortality rates. Due to the complexities goodwill) of consolidated subsidiaries are identified
involved in the valuation and its long-term nature, a separately from the Companys equity. The interest of
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non-controlling shareholders may be initially measured income as part of the profit or loss on disposal. Goodwill
either at fair value or at the non-controlling interests and fair value adjustments arising on the acquisition of a
proportionate share of the fair value of the acquirees foreign operation are treated as assets and liabilities of
identifiable net assets. The choice of measurement the foreign operation and translated at the exchange rate
basis is made on an acquisition to acquisition basis. prevailing at the reporting date.
Subsequent to acquisition, the carrying amount of non- c) Others
controlling interest is the amount of those interests at
initial recognition plus the non-controlling interests share Foreign currency differences arising on the translation or
of subsequent changes in equity. Total comprehensive settlement of a financial liability designated as a hedge
income is attributed to non-controlling interests even if of a net investment in a foreign operation are recognized
it results in the non-controlling interest having a deficit in other comprehensive income and presented within
balance. equity in the FCTR to the extent the hedge is effective. To
the extent the hedge is ineffective, such differences are
(ii) Functional and presentation currency recognized in the statement of income.
Items included in the financial statements of each of the When the hedged part of a net investment is disposed of,
Companys entities are measured using the currency of the relevant amount recognized in FCTR is transferred
the primary economic environment in which these entities to the statement of income as part of the profit or loss
operate (i.e. the functional currency). These consolidated on disposal. Foreign currency differences arising from
financial statements are presented in Indian rupees, the translation of intercompany receivables or payables
national currency of India, which is the functional currency relating to foreign operations, the settlement of which
of the Company. is neither planned nor likely in the foreseeable future,
(iii) Foreign currency transactions and translation are considered to form part of net investment in foreign
a) Transactions and balances operation and are recognized in FCTR.
Transactions in foreign currency are translated into the (iv) Financial instruments
respective functional currencies using the exchange Accounting policies applied prior to April 1, 2015
rates prevailing at the date of the transaction. Foreign A) Non-derivative financial instruments
exchange gains and losses resulting from the settlement
of such transactions and from translation at the exchange Non derivative financial instruments consist of:
rates prevailing at the reporting date of monetary assets financial assets, which include cash and cash
and liabilities denominated in foreign currencies are equivalents, trade receivables, unbilled revenues,
recognized in the statement of income and reported finance lease receivables, employee and other
within foreign exchange gains/(losses), net within results advances, investments in equity and debt securities
of operating activities except when deferred in other and eligible current and non-current assets;
comprehensive income as qualifying cash flow hedges and
qualifying net investment hedges. Gains/(losses) relating financial liabilities, which include long and short-
to translation or settlement of borrowings denominated in term loans and borrowings, bank overdrafts, trade
foreign currency are reported within finance expense. Non- payables, eligible current and non-current liabilities.
monetary assets and liabilities denominated in foreign Non derivative financial instruments are recognized
currency and measured at historical cost are translated initially at fair value. Financial assets are derecognized
at the exchange rate prevalent at the date of transaction. when substantial risks and rewards of ownership of the
Translation differences on non-monetary financial assets financial asset have been transferred. In cases where
measured at fair value at the reporting date, such as substantial risks and rewards of ownership of the financial
equities classified as financial instruments measured assets are neither transferred nor retained, financial
at fair value through other comprehensive income are assets are derecognized only when the Company has not
included in other comprehensive income, net of taxes. retained control over the financial asset.
b) Foreign operations Subsequent to initial recognition, non-derivative financial
For the purpose of presenting consolidated financial instruments are measured as described below:
statements, the assets and liabilities of the Companys a. Cash and cash equivalents
foreign operations that have a functional currency other
than Indian rupees are translated into Indian rupees using The Companys cash and cash equivalents consist of cash
exchange rates prevailing at the reporting date. Income on hand and in banks and demand deposits with banks,
and expense items are translated at the average exchange which can be withdrawn at any time, without prior notice
rates for the period. Exchange differences arising, if any, or penalty on the principal.
are recognized in other comprehensive income and held in For the purposes of the cash flow statement, cash
foreign currency translation reserve (FCTR), a component and cash equivalents include cash on hand, in banks
of equity, except to the extent that the translation and demand deposits with banks, net of outstanding
difference is allocated to non-controlling interest. When bank overdrafts that are repayable on demand and are
a foreign operation is disposed off, the relevant amount considered part of the Companys cash management
recognized in FCTR is transferred to the statement of system. In the consolidated statement of financial
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position, bank overdrafts are presented under borrowings are recognized in the statement of income and reported
within current liabilities. within foreign exchange gains/(losses), net within results
b. Available-for-sale financial assets from operating activities. If the hedging instrument no
longer meets the criteria for hedge accounting, then hedge
The Company has classified investments in liquid mutual accounting is discontinued prospectively. If the hedging
funds, equity securities and certain debt securities instrument expires or is sold, terminated or exercised,
(primarily certificate of deposits with banks) as available- the cumulative gain or loss on the hedging instrument
for-sale financial assets. These investments are measured recognized in cash flow hedging reserve till the period the
at fair value and changes therein, other than impairment hedge was effective remains in cash flow hedging reserve
losses, are recognized in other comprehensive income until the forecasted transaction occurs. The cumulative
and presented within equity, net of taxes. The impairment gain or loss previously recognized in the cash flow hedging
losses, if any, are reclassified from equity into statement reserve is transferred to the statement of income upon
of income. When an available for sale financial asset the occurrence of the related forecasted transaction. If
is derecognized, the related cumulative gain or loss the forecasted transaction is no longer expected to occur,
recognised in equity is transferred to the statement of such cumulative balance is immediately recognized in the
income. statement of income.
c. Loans and receivables b. Hedges of net investment in foreign operations
Loans and receivables are non-derivative financial assets The Company designates derivative financial instruments
with fixed or determinable payments that are not quoted as hedges of net investments in foreign operations.
in an active market. They are presented as current assets, The Company has also designated a foreign currency
except for those maturing later than 12 months after denominated borrowings as a hedge of net investment
the reporting date which are presented as non-current in foreign operations. Changes in the fair value of the
assets. Loans and receivables are initially recognized at derivative hedging instruments and gains/losses on
fair value and subsequently measured at amortized cost translation or settlement of foreign currency denominated
using the effective interest method, less any impairment borrowings designated as a hedge of net investment in
losses. Loans and receivables comprise trade receivables, foreign operations are recognized in other comprehensive
unbilled revenues, cash and cash equivalents and other income and presented within equity in the FCTR to the
assets. extent that the hedge is effective. To the extent that the
d. Trade and other payables hedge is ineffective, changes in fair value are recognized
in the statement of income and reported within foreign
Trade and other payables are initially recognized at exchange gains/(losses), net within results from operating
fair value, and subsequently carried at amortized cost activities.
using the effective interest method. For these financial
instruments, the carrying amounts approximate fair value c. Others
due to the short term maturity of these instruments. Changes in fair value of foreign currency derivative
B) Derivative financial instruments instruments neither designated as cash flow hedges
nor hedges of net investment in foreign operations are
The Company is exposed to foreign currency fluctuations recognized in the statement of income and reported within
on foreign currency assets, liabilities, net investment in foreign exchange gains, net within results from operating
foreign operations and forecasted cash flows denominated activities. Changes in fair value and gains/(losses) on
in foreign currency. settlement of foreign currency derivative instruments
The Company limits the effect of foreign exchange rate relating to borrowings, which have not been designated
fluctuations by following established risk management as hedges are recorded in finance expense.
policies including the use of derivatives. The Company Accounting policies applied from April 1, 2015
enters into derivative financial instruments where the
counterparty is primarily a bank. The Company has elected to early adopt IFRS 9, Financial
Instruments effective April 1, 2016 with retrospective
Derivatives are recognized and measured at fair value. application from April 1, 2015.
Attributable transaction costs are recognized in statement
of income as cost. Below are the accounting policies for financial instruments
consequent to adoption of IFRS 9:
Subsequent to initial recognition, derivative financial
instruments are measured as described below: A) Non-derivative financial instruments:
a. Cash flow hedges Non derivative financial instruments consist of:
Changes in the fair value of the derivative hedging financial assets, which include cash and cash
instrument designated as a cash flow hedge are equivalents, trade receivables, unbilled revenues,
recognized in other comprehensive income and held in finance lease receivables, employee and other
cash flow hedging reserve, net of taxes, a component of advances, investments in equity and debt securities
equity, to the extent that the hedge is effective. To the and eligible current and non-current assets;
extent that the hedge is ineffective, changes in fair value financial liabilities, which include long and short-
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term loans and borrowings, bank overdrafts, trade value of FVTOCI financial assets are recognized in other
payables, eligible current and non-current liabilities. comprehensive income. When the investment is disposed
Non derivative financial instruments are recognized of, the cumulative gain or loss previously accumulated in
initially at fair value. Financial assets are derecognized reserves is transferred to the consolidated statement of
when substantial risks and rewards of ownership of the income.
financial asset have been transferred. In cases where Financial instruments measured at fair value through profit
substantial risks and rewards of ownership of the financial or loss (FVTPL):
assets are neither transferred nor retained, financial Instruments that do not meet the amortised cost or
assets are derecognized only when the Company has not FVTOCI criteria are measured at FVTPL. Financial assets
retained control over the financial asset. at FVTPL are measured at fair value at the end of each
Subsequent to initial recognition, non-derivative financial reporting period, with any gains or losses arising on re-
instruments are measured as described below: measurement recognized in statement of income. The
a. Cash and cash equivalents gain or loss on disposal is recognized in the consolidated
statement of income.
The Companys cash and cash equivalents consist of cash
on hand and in banks and demand deposits with banks, Interest income is recognized in the consolidated
which can be withdrawn at any time, without prior notice statement of income for FVTPL debt instruments. Dividend
or penalty on the principal. on financial assets at FVTPL is recognized when the
Groups right to receive dividend is established.
For the purposes of the cash flow statement, cash
and cash equivalents include cash on hand, in banks Investments in equity instruments designated to be
and demand deposits with banks, net of outstanding classified as FVTOCI:
bank overdrafts that are repayable on demand and are The Company carries certain equity instruments which are
considered part of the Companys cash management not held for trading. The Company has elected the FVTOCI
system. In the consolidated statement of financial irrevocable option for these instruments. Movements
position, bank overdrafts are presented under borrowings in fair value of these investments are recognized in
within current liabilities. other comprehensive income and the gain or loss is not
b. Investments transferred to statement of income on disposal of these
investments. Dividends from these investments are
Financial instruments measured at amortised cost: recognized in the consolidated statement of income when
Debt instruments that meet the following criteria are the Companys right to receive dividends is established.
measured at amortized cost (except for debt instruments c. Other financial assets:
that are designated at fair value through Profit or Loss
(FVTPL) on initial recognition): Other financial assets are non-derivative financial assets
with fixed or determinable payments that are not quoted
the asset is held within a business model whose in an active market. They are presented as current assets,
objective is to hold assets in order to collect except for those maturing later than 12 months after
contractual cash flows; and the reporting date which are presented as non-current
the contractual terms of the instrument give rise on assets. These are initially recognized at fair value and
specified dates to cash flows that are solely payment subsequently measured at amortized cost using the
of principal and interest on the principal amount effective interest method, less any impairment losses.
outstanding. These comprise trade receivables, unbilled revenues and
other assets.
Financial instruments measured at fair value through other
comprehensive income (FVTOCI): d. Trade and other payables
Debt instruments that meet the following criteria are Trade and other payables are initially recognized at
measured at fair value through other comprehensive fair value, and subsequently carried at amortized cost
income (FVTOCI) (except for debt instruments that are using the effective interest method. For these financial
designated at fair value through Profit or Loss (FVTPL) on instruments, the carrying amounts approximate fair value
initial recognition): due to the short term maturity of these instruments.
the asset is held within a business model whose B) Derivative financial instruments
objective is achieved both by collecting contractual The Company is exposed to foreign currency fluctuations
cash flows and selling the financial asset; and on foreign currency assets, liabilities, net investment in
the contractual terms of the instrument give rise on foreign operations and forecasted cash flows denominated
specified dates to cash flows that are solely payment in foreign currency.
of principal and interest on the principal amount The Company limits the effect of foreign exchange rate
outstanding. fluctuations by following established risk management
Interest income is recognized in the statement of income policies including the use of derivatives. The Company
for FVTOCI debt instruments. Other changes in fair enters into derivative financial instruments where the
counterparty is primarily a bank.
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Derivatives are recognized and measured at fair value. asset expire or it transfers the financial asset and the
Attributable transaction costs are recognized in statement transfer qualifies for derecognition under IFRS 9. If the
of income as cost. Company retains substantially all the risks and rewards
Subsequent to initial recognition, derivative financial of a transferred financial asset, the Company continues
instruments are measured as described below: to recognise the financial asset and also recognizes a
borrowing for the proceeds received. A financial liability
a. Cash flow hedges (or a part of a financial liability) is derecognized from the
Changes in the fair value of the derivative hedging groups balance sheet when the obligation specified in the
instrument designated as a cash flow hedge are contract is discharged or cancelled or expires.
recognized in other comprehensive income and held in (v) Equity and share capital
cash flow hedging reserve, net of taxes, a component of
equity, to the extent that the hedge is effective. To the a) Share capital and share premium
extent that the hedge is ineffective, changes in fair value The authorized share capital of the Company as of March
are recognized in the statement of income and reported 31, 2016 and 2017 is `6,100 divided into 2,917,500,000
within foreign exchange gains/(losses), net within results equity shares of `2 each, 25,000,000 preference shares
from operating activities. If the hedging instrument no of `10 each and 150,000 10% optionally convertible
longer meets the criteria for hedge accounting, then hedge cumulative preference shares of `100 each. Par value of
accounting is discontinued prospectively. If the hedging the equity shares is recorded as share capital and the
instrument expires or is sold, terminated or exercised, amount received in excess of par value is classified as
the cumulative gain or loss on the hedging instrument share premium.
recognized in cash flow hedging reserve till the period the Every holder of the equity shares, as reflected in the
hedge was effective remains in cash flow hedging reserve records of the Company as of the date of the shareholder
until the forecasted transaction occurs. The cumulative meeting shall have one vote in respect of each share
gain or loss previously recognized in the cash flow hedging held for all matters submitted to vote in the shareholder
reserve is transferred to the statement of income upon meeting.
the occurrence of the related forecasted transaction. If
the forecasted transaction is no longer expected to occur, b) Shares held by controlled trust (Treasury shares)
such cumulative balance is immediately recognized in the The Companys equity shares held by the controlled trust,
statement of income. which is consolidated as a part of the Group are classified
b. Hedges of net investment in foreign operations as Treasury shares. The Company has 14,829,824,
14,829,824 and 13,728,607 treasury shares as of March
The Company designates derivative financial instruments 31, 2015, 2016 and 2017, respectively. Treasury shares are
as hedges of net investments in foreign operations. recorded at acquisition cost.
The Company has also designated a foreign currency
denominated borrowing as a hedge of net investment c) Retained earnings
in foreign operations. Changes in the fair value of the Retained earnings comprises of the Companys
derivative hedging instruments and gains/losses on undistributed earnings after taxes. A portion of these
translation or settlement of foreign currency denominated earnings amounting to `1,139 is not freely available for
borrowings designated as a hedge of net investment in distribution.
foreign operations are recognized in other comprehensive
income and presented within equity in the FCTR to the d) Share based payment reserve
extent that the hedge is effective. To the extent that the The share based payment reserve is used to record the
hedge is ineffective, changes in fair value are recognized value of equity-settled share based payment transactions
in the statement of income and reported within foreign with employees. The amounts recorded in share based
exchange gains/(losses), net within results from operating payment reserve are transferred to share premium upon
activities. exercise of stock options and restricted stock unit options
c. Others by employees.
Changes in fair value of foreign currency derivative e) Foreign currency translation reserve
instruments neither designated as cash flow hedges The exchange differences arising from the translation of
nor hedges of net investment in foreign operations are financial statements of foreign subsidiaries, differences
recognized in the statement of income and reported within arising from translation of long-term inter-company
foreign exchange gains, net within results from operating receivables or payables relating to foreign operations
activities. Changes in fair value and gains/(losses) on settlement of which is neither planned nor likely in the
settlement of foreign currency derivative instruments foreseeable future, changes in fair value of the derivative
relating to borrowings, which have not been designated hedging instruments and gains/losses on translation or
as hedges are recorded in finance expense. settlement of foreign currency denominated borrowings
C) Derecognition of financial instruments designated as hedge of net investment in foreign
operations are recognized in other comprehensive income,
The Company derecognizes a financial asset when the net of taxes and presented within equity in the FCTR.
contractual rights to the cash flows from the financial
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f) Cash flow hedging reserve Deposits and advances paid towards the acquisition
Changes in fair value of derivative hedging instruments of property, plant and equipment outstanding as of
designated and effective as a cash flow hedge are each reporting date and the cost of property, plant and
recognized in other comprehensive income (net of taxes), equipment not available for use before such date are
and presented within equity as cash flow hedging reserve. disclosed under capital work- in-progress.
is, or contains a lease if, fulfillment of the arrangement twelve months expected credit loss unless there has been
is dependent on the use of a specific asset or assets a significant increase in credit risk from initial recognition,
or the arrangement conveys a right to use the asset or in which case those are measured at lifetime expected
assets, even if that right is not explicitly specified in an credit loss. Refer note 2 (iv) (g) for further information.
arrangement. B) Non-financial assets
a) Arrangements where the Company is the lessee The Company assesses long-lived assets such as property,
Leases of property, plant and equipment, where the plant, equipment and acquired intangible assets for
Company assumes substantially all the risks and rewards impairment whenever events or changes in circumstances
of ownership are classified as finance leases. Finance indicate that the carrying amount of an asset or group
leases are capitalized at lower of the fair value of the of assets may not be recoverable. If any such indication
leased property and the present value of the minimum exists, the Company estimates the recoverable amount
lease payments. Lease payments are apportioned of the asset or group of assets. The recoverable amount
between the finance charge and the outstanding liability. of an asset or cash generating unit is the higher of its
The finance charge is allocated to periods during the fair value less cost of disposal (FVLCD) and its value-
lease term at a constant periodic rate of interest on the in-use (VIU). The VIU of long-lived assets is calculated
remaining balance of the liability. using projected future cash flows. FVLCD of a cash
generating unit is computed using turnover and earnings
Leases where the lessor retains substantially all the risks multiples. If the recoverable amount of the asset or the
and rewards of ownership are classified as operating recoverable amount of the cash generating unit to which
leases. Payments made under operating leases are the asset belongs is less than its carrying amount, the
recognized in the statement of income on a straight-line carrying amount is reduced to its recoverable amount.
basis over the lease term. The reduction is treated as an impairment loss and is
b) Arrangements where the Company is the lessor recognized in the statement of income. If at the reporting
date, there is an indication that a previously assessed
In certain arrangements, the Company recognizes revenue impairment loss no longer exists, the recoverable amount
from the sale of products given under finance leases. The is reassessed and the impairment losses previously
Company records gross finance receivables, unearned recognized are reversed such that the asset is recognized
income and the estimated residual value of the leased at its recoverable amount but not exceeding written down
equipment on consummation of such leases. Unearned value which would have been reported if the impairment
income represents the excess of the gross finance lease losses had not been recognized initially.
receivable plus the estimated residual value over the sales
price of the equipment. The Company recognizes unearned Goodwill is tested for impairment at least annually at
income as finance income over the lease term using the the same time and when events occur or changes in
effective interest method. circumstances indicate that the recoverable amount of
the cash generating unit is less than its carrying value. The
(ix) Inventories goodwill impairment test is performed at the level of cash-
Inventories are valued at lower of cost and net realizable generating unit or groups of cash -generating units which
value, including necessary provision for obsolescence. represents the lowest level at which goodwill is monitored
Cost is determined using the weighted average method. for internal management purposes. An impairment in
respect of goodwill is not reversed.
(x) Impairment
(xi) Employee benefits
A) Financial assets
A) Post-employment and pension plans
The Company applies the expected credit loss model
The Group participates in various employee benefit
for recognizing impairment loss on financial assets
plans. Pensions and other post-employment benefits are
measured at amortised cost, debt instruments at FVTOCI,
classified as either defined contribution plans or defined
lease receivables, trade receivables and other financial
benefit plans. Under a defined contribution plan, the
assets. Expected credit loss is the difference between
Companys only obligation is to pay a fixed amount with
the contractual cash flows and the cash flows that the no obligation to pay further contributions if the fund does
entity expects to receive, discounted using the effective not hold sufficient assets to pay all employee benefits. The
interest rate. related actuarial and investment risks are borne by the
Loss allowances for trade receivables and lease receivables employee. The expenditure for defined contribution plans
are measured at an amount equal to lifetime expected is recognized as an expense during the period when the
credit loss. Lifetime expected credit losses are the employee provides service. Under a defined benefit plan,
expected credit losses that result from all possible default it is the Companys obligation to provide agreed benefits to
events over the expected life of a financial instrument. the employees. The related actuarial and investment risks
Lifetime expected credit loss is computed based on a are borne by the Company. The present value of the defined
provision matrix which takes in to account risk profiling of benefit obligations is calculated by an independent
customers and historical credit loss experience adjusted actuary using the projected unit credit method.
for forward looking information. For other financial assets, Actuarial gains or losses are immediately recognized
expected credit loss is measured at the amount equal to in other comprehensive income, net of taxes and
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permanently excluded from profit or loss. Further, the utilize it in future periods or receive cash at retirement
profit or loss will no longer include an expected return on or termination of employment. The Company records an
plan assets. Instead net interest recognized in profit or obligation for compensated absences in the period in
loss is calculated by applying the discount rate used to which the employee renders the services that increases
measure the defined benefit obligation to the net defined this entitlement. The Company measures the expected
benefit liability or asset. The actual return on the plan cost of compensated absences as the additional amount
assets above or below the discount rate is recognized as that the Company expects to pay as a result of the unused
part of re-measurement of net defined liability or asset entitlement that has accumulated at the end of the
through other comprehensive income, net of taxes. reporting period. The Company recognizes accumulated
The Company has the following employee benefit plans: compensated absences based on actuarial valuation
using the projected unit credit method. Non-accumulating
a. Provident fund compensated absences are recognized in the period in
Employees receive benefits from a provident fund, which which the absences occur.
is a defined benefit plan. The employer and employees (xii) Share based payment transactions
each make periodic contributions to the plan. A portion of
the contribution is made to the approved provident fund Selected employees of the Company receive remuneration
trust managed by the Company while the remainder of in the form of equity settled instruments, for rendering
the contribution is made to the government administered services over a defined vesting period. Equity instruments
pension fund. The contributions to the trust managed by granted are measured by reference to the fair value of the
the Company is accounted for as a defined benefit plan as instrument at the date of grant. In cases, where equity
the Company is liable for any shortfall in the fund assets instruments are granted at a nominal exercise price, the
based on the government specified minimum rates of intrinsic value on the date of grant approximates the
return. fair value. The expense is recognized in the statement of
income with a corresponding increase to the share based
b. Superannuation payment reserve, a component of equity.
Superannuation plan, a defined contribution scheme is The equity instruments generally vest in a graded manner
administered by third party fund managers. The Company over the vesting period. The fair value determined at
makes annual contributions based on a specified the grant date is expensed over the vesting period of
percentage of each eligible employees salary. the respective tranches of such grants (accelerated
c. Gratuity amortization). The stock compensation expense is
determined based on the Companys estimate of equity
In accordance with the Payment of Gratuity Act, 1972, instruments that will eventually vest.
applicable for Indian companies, the Company provides for
a lump sum payment to eligible employees, at retirement (xiii) Provisions
or termination of employment based on the last drawn Provisions are recognized when the Company has a present
salary and years of employment with the Company. The obligation (legal or constructive) as a result of a past event,
gratuity fund is managed by third party fund managers. it is probable that an outflow of economic benefits will be
The Companys obligation in respect of the gratuity plan, required to settle the obligation and a reliable estimate
which is a defined benefit plan, is provided for based on can be made of the amount of the obligation.
actuarial valuation using the projected unit credit method.
The Company recognizes actuarial gains and losses in The amount recognized as a provision is the best estimate
other comprehensive income, net of taxes. of the consideration required to settle the present
obligation at the end of the reporting period, taking into
d. Termination benefits account the risks and uncertainties surrounding the
Termination benefits are expensed when the Company can obligation.
no longer withdraw the offer of those benefits. When some or all of the economic benefits required to
e. Short-term benefits settle a provision are expected to be recovered from a
third party, the receivable is recognized as an asset, if it is
Short-term employee benefit obligations are measured on virtually certain that reimbursement will be received and
an undiscounted basis and are recorded as expense as the the amount of the receivable can be measured reliably.
related service is provided. A liability is recognized for the
amount expected to be paid under short-term cash bonus Provisions for onerous contracts are recognized when the
or profit-sharing plans, if the Company has a present legal expected benefits to be derived by the Company from a
or constructive obligation to pay this amount as a result of contract are lower than the unavoidable costs of meeting
past service provided by the employee and the obligation the future obligations under the contract. Provisions for
can be estimated reliably. onerous contracts are measured at the present value of
lower of the expected net cost of fulfilling the contract and
f. Compensated absences the expected cost of terminating the contract.
The employees of the Company are entitled to compensated (xiv) Revenue
absences. The employees can carry forward a portion of
the unutilized accumulating compensated absences and The Company derives revenue primarily from software
development, maintenance of software/hardware and
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related services, business process services, sale of IT and the buyer, continuing managerial involvement usually
other products. associated with ownership and effective control have
a) Services ceased, the amount of revenue can be measured reliably,
it is probable that economic benefits associated with
The Company recognizes revenue when the significant the transaction will flow to the Company and the costs
terms of the arrangement are enforceable, services incurred or to be incurred in respect of the transaction
have been delivered and the collectability is reasonably can be measured reliably.
assured. The method for recognizing revenues and costs
depends on the nature of the services rendered: c) Multiple element arrangements
A. Time and materials contracts Revenue from contracts with multiple-element
arrangements are recognized using the guidance in IAS
Revenues and costs relating to time and materials
18, Revenue. The Company allocates the arrangement
contracts are recognized as the related services are
consideration to separately identifiable components
rendered.
based on their relative fair values or on the residual
B. Fixed-price contracts method. Fair values are determined based on sale prices
Revenues from fixed-price contracts, including systems for the components when it is regularly sold separately,
development and integration contracts are recognized third-party prices for similar components or cost plus an
using the percentage-of-completion method. Percentage appropriate business-specific profit margin related to the
of completion is determined based on project costs relevant component.
incurred to date as a percentage of total estimated project d) Others
costs required to complete the project. The cost expended
(or input) method has been used to measure progress The Company accounts for volume discounts and
towards completion as there is a direct relationship pricing incentives to customers by reducing the
between input and productivity. If the Company does amount of revenue recognized at the time of sale.
not have a sufficient basis to measure the progress of Revenues are shown net of sales tax, value added tax,
completion or to estimate the total contract revenues and service tax and applicable discounts and allowances.
costs, revenue is recognized only to the extent of contract Revenue includes excise duty.
cost incurred for which recoverability is probable. When
total cost estimates exceed revenues in an arrangement, The Company accrues the estimated cost of
the estimated losses are recognized in the statement warranties at the time when the revenue is recognized.
of income in the period in which such losses become The accruals are based on the Companys historical
probable based on the current contract estimates. experience of material usage and service delivery
costs.
Unbilled revenues represent cost and earnings in
excess of billings as at the end of the reporting period. Costs that relate directly to a contract and incurred
Unearned revenues represent billing in excess of revenue in securing a contract are recognized as an asset
recognized. Advance payments received from customers and amortized over the contract term as reduction
for which no services have been rendered are presented of revenue.
as Advance from customers.
Contract expenses are recognised as expenses by
C. Maintenance contracts reference to the stage of completion of contract
Revenue from maintenance contracts is recognized ratably activity at the end of the reporting period.
over the period of the contract using the percentage of (xv) Finance expenses
completion method. When services are performed through
an indefinite number of repetitive acts over a specified Finance expenses comprise interest cost on borrowings,
period of time, revenue is recognized on a straight-line gains or losses arising on re-measurement of financial
basis over the specified period unless some other method assets measured at FVTPL, gains/ (losses) on translation
better represents the stage of completion. or settlement of foreign currency borrowings and changes
in fair value and gains/ (losses) on settlement of related
In certain projects, a fixed quantum of service or output derivative instruments. Borrowing costs that are not
units is agreed at a fixed price for a fixed term. In such directly attributable to a qualifying asset are recognized
contracts, revenue is recognized with respect to the in the statement of income using the effective interest
actual output achieved till date as a percentage of total method.
contractual output. Any residual service unutilized by
the customer is recognized as revenue on completion of (xvi) Finance and other income
the term. Finance and other income comprises interest income on
b) Products deposits, dividend income and gains / (losses) on disposal
of investments. Interest income is recognized using the
Revenue from products are recognized when the significant
effective interest method. Dividend income is recognized
risks and rewards of ownership have been transferred to
when the right to receive payment is established.
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(xvii) Income tax current tax assets against current tax liabilities, and they
Income tax comprises current and deferred tax. Income tax relate to taxes levied by the same taxation authority on
expense is recognized in the statement of income except either the same taxable entity, or on different taxable
to the extent it relates to a business combination, or items entities where there is an intention to settle the current
directly recognized in equity or in other comprehensive tax liabilities and assets on a net basis or their tax assets
income. and liabilities will be realized simultaneously.
a) Current income tax (xviii) Earnings per share
Current income tax for the current and prior periods are Basic earnings per share is computed using the weighted
measured at the amount expected to be recovered from average number of equity shares outstanding during the
or paid to the taxation authorities based on the taxable period adjusted for treasury shares held. Diluted earnings
income for the period. The tax rates and tax laws used per share is computed using the weighted-average number
to compute the current tax amounts are those that are of equity and dilutive equivalent shares outstanding
enacted or substantively enacted as at the reporting date during the period, using the treasury stock method for
and applicable for the period. The Company offsets current options and warrants, except where the results would be
tax assets and current tax liabilities, where it has a legally anti-dilutive.
enforceable right to set off the recognized amounts and
where it intends either to settle on a net basis, or to realize (xix) Discontinued operations
the asset and liability simultaneously. A discontinued operation is a component of the Companys
b) Deferred income tax business that represents a separate line of business that
has been disposed off or is held for sale, or is a subsidiary
Deferred income tax is recognized using the balance
acquired exclusively with a view to resale. Classification
sheet approach. Deferred income tax assets and liabilities
as a discontinued operation occurs upon the earlier of
are recognized for deductible and taxable temporary
differences arising between the tax base of assets disposal or when the operation meets the criteria to be
and liabilities and their carrying amount in financial classified as held for sale.
statements, except when the deferred income tax arises New Accounting standards adopted by the Company:
from the initial recognition of goodwill or an asset or
IFRS 9 Financial instruments
liability in a transaction that is not a business combination
and affects neither accounting nor taxable profits or loss The Company has elected to early adopt IFRS 9, Financial
at the time of the transaction. Instruments effective April 1, 2016 with retrospective
Deferred income tax assets are recognized to the extent application from April 1, 2015.
it is probable that taxable profit will be available against IFRS 9 introduces a single approach for the classification
which the deductible temporary differences and the carry and measurement of financial assets according to their
forward of unused tax credits and unused tax losses can cash flow characteristics and the business model they
be utilized. are managed in, and provides a new impairment model
Deferred income tax liabilities are recognized for all based on expected credit losses. IFRS 9 also includes new
taxable temporary differences except in respect of taxable guidance regarding the application of hedge accounting
temporary differences associated with investments in to better reflect an entitys risk management activities
subsidiaries, associates and foreign branches where the especially with regard to managing non-financial risks.
timing of the reversal of the temporary difference can be
Application of the new measurement and presentation
controlled and it is probable that the temporary difference
requirements of IFRS 9 did not have a significant impact
will not reverse in the foreseeable future.
on equity. The Company continues to measure at fair value
The carrying amount of deferred income tax assets is all financial assets earlier measured at fair value. All
reviewed at each reporting date and reduced to the extent existing hedge relationships that were earlier designated
that it is no longer probable that sufficient taxable profit as effective hedging relationships continue to qualify
will be available to allow all or part of the deferred income for hedge accounting under IFRS 9. As IFRS 9 does not
tax asset to be utilized.
change the general principles of how an entity accounts for
Deferred income tax assets and liabilities are measured effective hedges, there is no significant impact as a result
at the tax rates that are expected to apply in the period of applying IFRS 9. The effect of change in measurement
when the asset is realized or the liability is settled, based of financial instruments on Companys comprehensive
on tax rates (and tax laws) that have been enacted or income, financial position and earning per share the has
substantively enacted at the reporting date. been applied retrospectively. The retrospective application
The Company offsets deferred income tax assets and did not have a significant impact on the financial position
liabilities, where it has a legally enforceable right to offset as at March 31, 2015 and 2016.
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The total impact on the Companys retained earnings and investment in certificate of deposits were reclassified
other reserves due to classification and measurement of from available for sale to financial assets measured at
financial instruments is as follows: FVTOCI. This reclassification did not have any impact on
the carrying value of the said assets as at April 1, 2015.
Retained Other
Earnings Reserves (c) Reclassification of loans and deposits to financial
instruments at amortised cost
Reported opening balance as at
April 1, 2015 `372,248 `655 Certain inter corporate and term deposits along with
Impact on adoption of IFRS 9 related interest accruals were reclassified from loans and
receivables reported as part of other assets to financial
Reclassification of investments assets measured at amortised cost. This reclassification
from available for sale investments did not have any impact on the carrying value of the said
(AFS) to FVTPL (refer note a) 55 (55) assets as at April 1, 2015.
Expected credit losses on financial
(d) Impairment of financial assets
assets (refer note d) (1,231)
Deferred tax impact on the above 406 24 The Company has applied the simplified approach to
providing for expected credit losses on trade receivables
Total impact on adoption of IFRS 9 (770) (31) as described by IFRS 9, which requires the use of lifetime
Adjusted balance as at April 1, 2015 `371,478 `624 expected credit loss provision for all trade receivables.
These provisions are based on assessment of risk of
Reported balance as at March 31,
default and expected timing of collection. A cumulative
2016 425,735 505
impairment provision of `918 (net of deferred tax) has
Impact of adoption of IFRS 9 for the been recorded as an adjustment to total equity as at April
year ended March 31, 2016 1, 2015.
Reclassification of investments The Company assesses on a forward-looking basis the
from AFS to FVTPL (refer note a) 375 (375) expected credit losses associated with its assets carried
Expected credit losses on financial at amortised cost. The impairment methodology applied
assets (refer note d) (161) depends on whether there has been a significant increase
Deferred tax impact on the above (61) 117 in credit risk.
The standard allows for two methods of adoption: the IFRIC 22 Foreign currency transactions and Advance
full retrospective adoption, which requires the standard consideration
to be applied to each prior period presented, or the
On December 8, 2016, the IFRS interpretations committee
modified retrospective adoption, which requires the of the International Accounting Standards Board issued
cumulative effect of adoption to be recognized as an IFRIC 22, Foreign currency transactions and Advance
adjustment to opening retained earnings in the period of consideration which clarifies that the date of the
adoption. The standard is effective for periods beginning transaction for the purpose of determining the exchange
on or after January 1, 2018. Early adoption is permitted. rate to use on initial recognition of the related asset,
The Company will adopt this standard using the full expense or income is the date on which an entity initially
retrospective method effective April 1, 2018. The Company recognizes the non-monetary asset or non-monetary
is currently assessing the impact of adopting IFRS 15 on liability arising from the payment or receipt of advance
its consolidated financial statements. consideration in a foreign currency. The effective date for
adoption of IFRIC 22 is annual reporting periods beginning
IFRS 16 Leases
on or after January 1, 2018, though early adoption is
On January 13, 2016, the International Accounting permitted. The Company is currently assessing the impact
Standards Board issued the final version of IFRS 16, of IFRIC 22 on its consolidated financial statements.
Leases. IFRS 16 will replace the existing leases Standard,
Amendments to IAS 7- Statement of cash flows
IAS 17 Leases, and related interpretations. The standard
sets out the principles for the recognition, measurement, In January 2016, the International Accounting Standards
presentation and disclosure of leases. IFRS 16 introduces Board issued the amendments to IAS 7, requiring the
a single lessee accounting model and requires a lessee to entities to provide disclosures that enable users of financial
recognise assets and liabilities for all leases with a term statements to evaluate changes in liabilities arising from
of more than 12 months, unless the underlying asset financing activities, including both changes arising from
is of low value. The Standard also contains enhanced cash flows and non-cash changes, suggesting inclusion
disclosure requirements for lessees. The effective date of a reconciliation between the opening and closing
for adoption of IFRS 16 is annual periods beginning on or balances in the balance sheet for liabilities arising from
after January 1, 2019, though early adoption is permitted financing activities, to meet the disclosure requirement.
The effective date for adoption of the amendments to IAS 7
for companies applying IFRS 15 Revenue from Contracts
is annual reporting periods beginning on or after January 1,
with Customers. The Company is currently assessing the
2017, though early adoption is permitted. The Company is
impact of adopting IFRS 16 on the Companys consolidated
assessing the disclosure requirements of the amendment
financial statements.
and the effect on its consolidated financial statements.
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5. Goodwill and Intangible assets Following table presents the allocation of goodwill to the
CGUs for the year ended March 31, 2016:
The movement in goodwill balance is given below:
As at
Year ended March 31,
CGUs March 31, 2016
2016 2017
Banking Financial Services and
Balance at the beginning of the
Insurance (BFSI) `15,639
year `68,078 `101,991
Translation adjustment 3,421 (4,319) Healthcare and Lifesciences (HLS) 38,096
Acquisition through business Retail, Consumer, Transport and
combinations, net 30,492 28,124 Government (RCTG) 10,712
Balance at the end of the year `101,991 `125,796 Energy, Natural Resources and
Utilities (ENU) 16,550
Acquisition through business combinations for the
year ended March 31, 2017 primarily includes goodwill Manufacturing and High-Tech (MFG) 16,242
recognized on the acquisition of Appirio Inc. Also refer note Global Media and Telecom (GMT) 4,752
6 to the consolidated financial statements. Total `101,991
The Company is organized by two operating segments: IT For the purpose of impairment testing, goodwill is
Services and IT Products. Goodwill as at March 31, 2016 allocated to a CGU representing the lowest level within
and 2017 has been allocated to the IT Services operating the Group at which goodwill is monitored for internal
segment. management purposes, and which is not higher than
Goodwill recognised on business combinations is the Companys operating segment. Goodwill is tested
allocated to Cash Generating Units (CGUs), within the IT for impairment at least annually in accordance with the
Services operating segment, which are expected to benefit Companys procedure for determining the recoverable
from the synergies of the acquisitions. value of each CGU.
During the year ended March 31, 2017, the Company The recoverable amount of the CGU is determined on the
realigned its CGUs (also refer note 30). Consequently, basis of Fair Value Less Cost of Disposal (FVLCD). The
goodwill has been allocated to the new CGUs as at March FVLCD of the CGU is determined based on the market
31, 2017 as follows: capitalization approach, using the turnover and earnings
multiples derived from observable market data. The fair
As at value measurement is categorized as a level 2 fair value
CGUs March 31, 2017 based on the inputs in the valuation techniques used.
Banking, Financial Services and
Insurance (BFSI) `19,826 Based on the above testing, no impairment was identified
as of March 31, 2016 and 2017 as the recoverable value
Healthcare and Lifesciences (HLS) 48,144
of the CGUs exceeded the carrying value. Further, none
Consumer Business Unit (CBU) 17,442
of the CGUs tested for impairment as of March 31, 2016
Energy, Natural Resources and and 2017 were at risk of impairment. An analysis of the
Utilities (ENU) 16,393 calculations sensitivity to a change in the key parameters
Manufacturing and Technology (MNT) 23,086 (turnover and earnings multiples), did not identify any
Communications (COMM) 905 probable scenarios where the CGUs recoverable amount
Total `125,796 would fall below its carrying amount.
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Intangible assets
Customer related Marketing related Total
Gross carrying value:
As at April 1, 2015 `10,617 `905 `11,522
Translation adjustment 292 120 412
Additions 189 189
Additions through business combinations 7,451 1,373 8,824
As at March 31, 2016 `18,360 `2,587 `20,947
Accumulated amortization and impairment:
As at April 1, 2015 `2,936 `655 `3,591
Translation adjustment 70 70
Amortization and impairment 1,228 217 1,445
As at March 31, 2016 `4,164 `942 `5,106
Net carrying value as at March 31, 2016 `14,196 `1,645 `15,841
Gross carrying value:
As at April 1, 2016 `18,360 `2,587 `20,947
Translation adjustment (546) (314) (860)
Additions through business combinations 2,714 4,006 6,720
As at March 31, 2017 `20,528 `6,279 `26,807
Accumulated amortization and impairment:
As at April 1, 2016 `4,164 `942 `5,106
Translation adjustment (7) (68) (75)
Amortization and impairment 5,107 747 5,854
As at March 31, 2017 `9,264 `1,621 `10,885
Net carrying value as at March 31, 2017 `11,264 `4,658 `15,922
Net assets acquired include `359 of cash and cash During the year ended March 31, 2017, an amount of `83
equivalents and trade receivables valued at `392. million was paid to the sellers representing earn-out
payments for the first earn-out period.
The goodwill of `4,046 comprises value of acquired
workforce and expected synergies arising from the Additionally, during the year ended March 31, 2017, as a
acquisition. Goodwill is not deductible for income tax result of changes in estimates of revenue and earnings
purposes. over the remaining earn-out period, the fair value of earn-
out liability was revalued at `293 million. The revision of
During the year ended March 31, 2016, the Company estimates has also resulted in reduction in the carrying
concluded the fair value adjustments of the assets value of intangibles recognised on acquisition and an
acquired and liabilities assumed on acquisition. impairment charge has been recorded. Accordingly,
Comparatives have not been retrospectively revised as a net gain of `1,032 million has been recorded in the
the amounts are not material. consolidated statement of income.
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The pro-forma effects of this acquisition on the Companys provides Wipro with scale and customer relationships, in
results were not material. the Manufacturing and Automotive domains in Germany,
Switzerland and Austria region.
Cellent AG
The acquisition was executed through a share purchase
On January 5, 2016, the Company obtained control of
agreement for a consideration of `5,686 (EUR 78.8 million),
Cellent AG (Cellent) by acquiring 100% of its share
net of `114 received during the year ended March 31, 2017
capital. Cellent is an IT consulting and software services
on conclusion of working capital adjustments which has
company offering IT solutions and services to customers
resulted in reduction of goodwill.
in Germany, Switzerland and Austria. This acquisition
The following table presents the allocation of purchase price:
Pre-acquisition Fair value Purchase price
Description carrying amount adjustments allocated
Net assets ` 846 ` ` 846
Customer related intangibles 1,001 1,001
Brand 317 317
Deferred tax liabilities on intangible assets (391) (391)
Total ` 846 ` 927 1,773
Goodwill 3,913
Total purchase price ` 5,686
Net assets acquired include `367 of cash and cash Services provides U.S. Payers with a diversified portfolio
equivalents and trade receivables valued at `1,437. of health insurance products delivered through its
proprietary technology platform.
The goodwill of `3,913 comprises value of acquired
workforce and expected synergies arising from the The acquisition was consummated for a consideration
acquisition. Goodwill is not deductible for income tax of `30,850 (USD 450.9 million), net of `219 concluded as
purposes. working capital adjustment during the year ended March
31, 2017. The consideration includes a deferred earn-out
During the year ended March 31, 2017, the Company
component of `1,115 (USD 16.3 million), which is linked
concluded the fair value adjustments of the assets
to achievement of revenues and earnings over a period of
acquired and liabilities assumed on acquisition.
3 years ending March 31, 2019. The fair value of the earn-
Comparatives have not been retrospectively revised as
out liability was estimated by applying the discounted
the amounts are not material.
cash flow approach considering discount rate of 14.1%
The pro-forma effects of this acquisition on the Companys and probability adjusted revenue and earnings estimates.
results were not material. This earn-out liability was fair valued at `536 million (USD
7.8 million) and recorded as part of preliminary purchase
HealthPlan Services
price allocation.
On February 29, 2016, the Company obtained full control
During the year ended March 31, 2017, the Company
of HPH Holdings Corp. (Healthplan Services). HealthPlan
concluded the fair value adjustments of the assets
Services offers market-leading technology platforms and
acquired and liabilities assumed on acquisition.
a fully integrated Business Process as a Service (BPaaS)
Comparatives have not been retrospectively revised as
solution to Health Insurance companies (Payers) in the
the amounts are not material.
individual, group and ancillary markets. HealthPlan
The following table presents the allocation of purchase price:
Pre-acquisition Fair value Purchase price
Description carrying amount adjustments allocated
Net assets `36 `1,604 `1,640
Technology platform 1,087 1,888 2,975
Customer related intangibles 5,791 5,791
Non-compete agreement 315 315
Deferred tax liabilities on intangible assets (3,039) (3,039)
Total `1,123 ` 6,559 7,682
Goodwill 22,590
Total purchase price `30,272
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Net assets acquired include `47 of cash and cash occurred if the acquisition had occurred on date indicated
equivalents and trade receivables valued at `2,472. or that may result in the future.
The goodwill of `22,590 comprises value of acquired Summary of material acquisitions during the year ended
workforce and expected synergies arising from the March 31, 2017 is given below:
acquisition. Goodwill is not deductible for income tax
Viteos Group
purposes.
Previously, the Company had announced, on December
During the year ended March 31, 2017, uncertainties
23, 2015, the signing of a definitive agreement to acquire
around regulatory changes relating to the Affordable Care
Viteos Group. However, due to inordinate delays in
Act have led to a significant decline in the revenue and
completion of closing conditions that exceeded the target
earnings estimates, resulting in revision of fair value of
closing date and expiration date under the terms of the
earn-out liability to `65 million. Further, this has resulted
agreement, both parties decided not to proceed with the
in reduction in the carrying value of certain intangible
acquisition.
assets recognised on acquisition and accordingly an
impairment charge has been recorded. Consequently, Appirio Inc.
a net loss of `1,351 million has been recorded in the
On November 23, 2016, the Company obtained full control
consolidated statement of income.
of Appirio Inc (Appirio). Appirio is a global services
If the acquisition had occurred on April 1, 2015, company that helps customers create next-generation
management estimates that consolidated revenue for employee and customer experiences using latest cloud
the Company would have been `526,671 and the profit technology services. This acquisition will strengthen
after taxes would have been `88,314 for twelve months Wipros cloud application service offerings. The acquisition
ended March 31, 2016. The pro-forma amounts are not was consummated for a consideration of `32,414
necessarily indicative of the results that would have (USD 475.7 million).
The following table presents the provisional allocation of purchase price:
Net assets acquired include `85 of cash and cash movements in the fair value of assets and liabilities.
equivalents and trade receivables valued at `2,363. Finalization of the purchase price allocation may result
in certain adjustments to the above allocation.
The goodwill of `28,032 comprises value of acquired
workforce and expected synergies arising from the If the acquisition had occurred on April 1, 2016,
acquisition. Goodwill is not deductible for income tax management estimates that consolidated revenue for
purposes. the Company would have been `559,575 and the profit
after taxes would have been `85,424 for twelve months
The purchase consideration has been allocated on a
ended March 31, 2017. The pro-forma amounts are not
provisional basis based on managements estimates. The
necessarily indicative of the results that would have
Company is in the process of making a final determination
occurred if the acquisition had occurred on date indicated
of adjustments to purchase consideration on account
or that may result in the future.
of working capital changes and other consequential
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7. Investments
Investments consist of the following:
As at
March 31, 2016 March 31, 2017
Financial instruments at FVTPL
Investments in liquid and short-term mutual funds (1) `10,578 `104,675
Others 816 569
Financial instruments at FVTOCI
Equity instruments 4,907 5,303
Commercial paper, Certificate of deposits and bonds 121,676 145,614
Financial instruments at amortised cost
Inter corporate and term deposits (2) (3) 71,174 42,972
`209,151 `299,133
Current 204,244 292,030
Non-current 4,907 7,103
(1)
I nvestments in liquid and short-term mutual funds include investments amounting to `117 (March 31, 2016: `109)
pledged as margin money deposits for entering into currency future contracts.
(2)
These deposits earn a fixed rate of interest.
(3)
Term deposits include deposits in lien with banks amounting to `308 (March 31, 2016: `300).
the year `5,510 `8,709 any time without prior notice and without any penalty on
Adjustment on adoption of the principal.
IFRS 9 1,243 Demand deposits with banks include deposits in lien with
Restated balance at the banks amounting to ` Nil (March 31, 2016: `3).
beginning of the year 6,753 8,709
Cash and cash equivalents consist of the following for the
Additions during the year, net 2,004 2,427
purpose of the cash flow statement:
Uncollectable receivables
charged against allowance (115) (2,099) As at March 31,
Translation adjustment 67 71
2015 2016 2017
Balance at the end of the year `8,709 `9,108
Cash and cash
9. Inventories
equivalents (as above) `158,940 `99,049 `52,710
Inventories consist of the following:
Bank overdrafts (227) (657) (1,992)
As at March 31,
`158,713 `98,392 `50,718
2016 2017
Stores and spare parts `871 `808
Raw materials and components 2 1
Finished goods and traded goods 4,517 3,106
`5,390 `3,915
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12. Loans and borrowings million from bankers for working capital requirements
Short-term loans and borrowings and other short term needs. As of March 31, 2017, the
Company has unutilized lines of credit aggregating U.S.$
The Company had short-term borrowings including bank 744 million, EURO 1 million, AUD 13 million, GBP 5 million
overdrafts amounting to `102,667 and `116,742 as at and CAD 14 million. To utilize these unutilized lines of
March 31, 2016 and 2017, respectively. The principal source credit, the Company requires consent of the lender and
of Short-term borrowings from banks as of March 31, 2017 compliance with certain financial covenants. Significant
primarily consists of lines of credit of approximately portion of these lines of credit are revolving credit facilities
`204, U.S. Dollar (U.S.$) 2,495 million, Canadian Dollar and floating rate foreign currency loans, renewable on
(CAD) 44 million, Australian Dollar (AUD) 13 million, EURO a periodic basis. Significant portion of these facilities
1 million and United Kingdom Pound sterling (GBP) 23 bear floating rates of interest, referenced to LIBOR and a
spread, determined based on market conditions.
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The Company has non-fund based revolving credit facilities in various currencies equivalent to `41,740 and `51,739,
as of March 31, 2016 and 2017, respectively, towards operational requirements that can be used for the issuance of
letters of credit and bank guarantees. As of March 31,2016 and 2017, an amount of `15,519 and `29,716 respectively,
was unutilized out of these non-fund based facilities.
Long-term loans and borrowings
A summary of long- term loans and borrowings is as follows:
As at March 31, 2016 As at March 31, 2017
Foreign Indian Foreign Indian Interest rate Final
Currency
currency Rupee currency Rupee maturity
in in millions
millions
Unsecured external commercial borrowing
U.S. Dollar 150 `9,938 150 ` 9,728 1.81% June 2018
Unsecured term loan
Indian Rupee NA 666 NA 714 8.3%-10.3% May 2021
Saudi Arabian Riyal (SAR) 169 2,987 71 1,229 SIBOR+1.50% April 2018
Australian Dollar (AUD) 2 116 4.65% January 2022
Canadian Dollar (CAD) 85 4,131 CDOR+1.25% October 2021
EURO 19 1,282 EONIA+1% December 2020
Great British pound (GBP) 1 73 3.4% May 2022
USD 2 118 3.27%-3.81% June 2021
`13,591 `17,391
Obligations under finance leases 8,963 8,280
`22,554 `25,671
Current portion of long term loans and
borrowings `5,193 `6,060
Non-current portion of long term loans
and borrowings 17,361 19,611
The contracts governing the Companys unsecured Obligations under finance leases amounting to `8,963
external commercial borrowing contain certain covenants and `8,280 as at March 31, 2016 and 2017, respectively,
that limit future borrowings. The terms of the loans and are secured by underlying property, plant and equipment.
borrowings also contain certain restrictive covenants
Interest expense was `1,410 and `1,916 for the year ended
primarily requiring the Company to maintain certain
March 31, 2016 and 2017, respectively.
financial ratios. As of March 31, 2017, the Company has
met all the covenants under these arrangements.
The following is a schedule of future minimum lease payments under finance leases, together with the present value
of minimum lease payments as of March 31, 2016 and 2017:
Minimum lease Present value of minimum
payments lease payments
As at March 31, As at March 31,
2016 2017 2016 2017
Not later than one year `3,429 `3,876 `3,133 `3,623
Later than one year but not later than five years 6,112 4,841 5,830 4,657
Later than five years
Total minimum lease payments 9,541 8,717 8,963 8,280
Less: Amounts representing interest (578) (437)
Present value of minimum lease payments `8,963 `8,280 `8,963 `8,280
Included in the financial statements as follows:
Current finance lease payables `3,133 `3,623
Non-current finance lease payables 5,830 4,657
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Offsetting financial assets and liabilities these instruments. The Companys long-term debt has
been contracted at market rates of interest. Accordingly,
The following table contains information on financial
the carrying value of such long-term debt approximates
assets and liabilities subject to offsetting:
fair value. Further, finance lease receivables that are
Financial assets overdue are periodically evaluated based on individual
credit worthiness of customers. Based on this evaluation,
Gross amounts Net amounts
Gross of recognized of financial the Company records allowance for estimated losses on
amounts of financial assets these receivables. As of March 31, 2016 and 2017, the
recognized liabilities presented in carrying value of such receivables, net of allowances
financial set off in the the balance
Other financial assets assets balance sheet sheet
approximates the fair value.
As at March 31, 2016 167,830 (3,510) 164,320 Investments in liquid and short-term mutual funds, which
As at March 31, 2017 162,252 (4,899) 157,353 are classified as FVTPL are measured using net asset
Financial liabilities values at the reporting date multiplied by the quantity
held. Fair value of investments in certificate of deposits,
Gross amounts Net amounts commercial papers classified as FVTOCI is determined
Gross of recognized of financial
amounts of financial assets
based on the indicative quotes of price and yields
recognized liabilities presented in prevailing in the market at the reporting date. Fair value of
Trade and other financial set off in the the balance investments in equity instruments classified as FVTOCI is
payables assets balance sheet sheet determined using market and income approaches.
As at March 31, 2016 73,780 (3,510 70,270
As at March 31, 2017 71,580 (4,899 66,681 The fair value of derivative financial instruments is
determined based on observable market inputs including
For the financial assets and liabilities subject to offsetting currency spot and forward rates, yield curves, currency
or similar arrangements, each agreement between the volatility etc.
Company and the counterparty allows for net settlement
of the relevant financial assets and liabilities when both Fair value hierarchy
elect to settle on a net basis. In the absence of such an Level 1 Quoted prices (unadjusted) in active markets for
election, financial assets and liabilities will be settled on identical assets or liabilities.
a gross basis and hence are not offset.
Level 2 Inputs other than quoted prices included within
Fair value Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from
The fair value of cash and cash equivalents, trade
prices).
receivables, unbilled revenues, borrowings, trade payables,
current financial assets and liabilities. approximate their Level 3 Inputs for the assets or liabilities that are not
carrying amount largely due to the short-term nature of based on observable market data (unobservable inputs)
The following table presents fair value hierarchy of assets and liabilities measured at fair value on a recurring basis:
As at March 31, 2016 As at March 31, 2017
Total Fair value measurements Total Fair value measurements
Particulars
at reporting date using at reporting date using
Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
Assets
Derivative instruments
- Cash flow hedges ` 3,072 ` ` 3,072 ` ` 7,307 ` ` 7,307 `
- Others 2,737 2,179 558 2,546 2,120 426
Investments
- Investment in liquid and short-
term mutual funds 10,578 10,578 104,675 104,675
- Other Investments 816 816 569 569
- Investments in equity instruments 4,907 4,907 5,303 5,303
- Commercial paper, certificate of
deposits and bonds 121,676 1,094 120,582 145,614 145,614
Liabilities
Derivative instruments
- Cash flow hedges (706) (706) (55) (55)
- Others (1,753) (1,753) (2,655) (2,655)
Contingent consideration (2,251) (2,251) (339) (339)
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The following methods and assumptions were used to The models incorporate various inputs including the
estimate the fair value of the level 2 financial instruments credit quality of counterparties, foreign exchange spot
included in the above table: and forward rates, interest rate curves and forward
rate curves of the underlying. As at March 31, 2017, the
Derivative instruments (assets and liabilities): The
changes in counterparty credit risk had no material effect
Company enters into derivative financial instruments
on the hedge effectiveness assessment for derivatives
with various counter-parties, primarily banks with
designated in hedge relationships and other financial
investment grade credit ratings. Derivatives valued using
instruments recognized at fair value.
valuation techniques with market observable inputs are
mainly interest rate swaps, foreign exchange forward Investment in Commercial paper, certificate of deposits
contracts and foreign exchange option contracts. The and bonds: Fair valuation is derived based on the indicative
most frequently applied valuation techniques include quotes of price and yields prevailing in the market as on
forward pricing, swap models and Black Scholes models the reporting date.
(for option valuation), using present value calculations.
The related hedge transactions for balance in cash flow Risk Management Procedures
hedging reserve as of March 31, 2017 are expected to
The Company manages market risk through a corporate
occur and be reclassified to the statement of income over treasury department, which evaluates and exercises
a period of 3 years. independent control over the entire process of market
As at March 31, 2016 and 2017, there were no significant risk management. The corporate treasury department
gains or losses on derivative transactions or portions recommends risk management objectives and policies,
thereof that have become ineffective as hedges, or which are approved by senior management and Audit
associated with an underlying exposure that did not occur. Committee. The activities of this department include
management of cash resources, implementing hedging
Sale of financial assets strategies for foreign currency exposures, borrowing
strategies, and ensuring compliance with market risk
From time to time, in the normal course of business, limits and policies.
the Company transfers accounts receivables, unbilled
revenues, net investment in finance lease receivables Foreign currency risk
(financials assets) to banks. Under the terms of the The Company operates internationally and a major
arrangements, the Company surrenders control over portion of its business is transacted in several currencies.
the financial assets and transfer is without recourse. Consequently, the Company is exposed to foreign exchange
Accordingly, such transfers are recorded as sale of risk through receiving payment for sales and services in
financial assets. Gains and losses on sale of financial the United States and elsewhere, and making purchases
assets without recourse are recorded at the time of sale from overseas suppliers in various foreign currencies. The
based on the carrying value of the financial assets and fair exchange rate risk primarily arises from foreign exchange
value of servicing liability. The incremental impact of such revenue, receivables, cash balances, forecasted cash
transactions on our cash flow and liquidity for the years flows, payables and foreign currency loans and borrowings.
ended March 31, 2016 and 2017 is not material. A significant portion of the Companys revenue is in the
U.S. Dollar, the United Kingdom Pound Sterling, the Euro,
In certain cases, transfer of financial assets may be with the Canadian Dollar and the Australian Dollar, while a large
recourse. Under arrangements with recourse, the Company portion of costs are in Indian rupees. The exchange rate
is obligated to repurchase the uncollected financial between the rupee and these currencies has fluctuated
assets, subject to limits specified in the agreement significantly in recent years and may continue to fluctuate
with the banks. These are reflected as part of loans and in the future. Appreciation of the rupee against these
borrowings in the statement of financial position. currencies can adversely affect the Companys results
of operations.
Financial risk management
The Company evaluates exchange rate exposure arising
General from these transactions and enters into foreign currency
Market risk is the risk of loss of future earnings, to fair derivative instruments to mitigate such exposure. The
values or to future cash flows that may result from a Company follows established risk management policies,
change in the price of a financial instrument. The value of including the use of derivatives like foreign exchange
forward/option contracts to hedge forecasted cash flows
a financial instrument may change as a result of changes
denominated in foreign currency.
in the interest rates, foreign currency exchange rates and
other market changes that affect market risk sensitive The Company has designated certain derivative
instruments. Market risk is attributable to all market risk instruments as cash flow hedges to mitigate the foreign
sensitive financial instruments including investments, exchange exposure of forecasted highly probable cash
foreign currency receivables, payables and loans and flows. The Company has also designated foreign currency
borrowings. borrowings as hedge against respective net investments
in foreign operations.
The Companys exposure to market risk is a function
of investment and borrowing activities and revenue As of March 31, 2016, and 2017 respectively, a `1 increase/
decrease in the spot exchange rate of the Indian rupee
generating activities in foreign currency. The objective of
with the U.S. dollar would result in approximately `1,398
market risk management is to avoid excessive exposure
and `1,155 decrease/increase in the fair value of foreign
of the Companys earnings and equity to losses.
currency dollar denominated derivative instruments.
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The below table presents foreign currency risk from non-derivative financial instruments as of March 31, 2016 and 2017:
As at March 31, 2016
US$ Euro Pound Australian Canadian Other Total
Sterling Dollar Dollar currencies#
Trade receivables `34,284 `3,836 `6,891 `1,754 `419 `3,023 `50,207
Unbilled revenues 19,578 4,330 4,458 1,780 258 1,398 31,802
Cash and cash equivalents 46,426 2,361 47 362 43 1,403 50,642
Other assets 1,810 1,071 44 2,091 14 171 5,201
Loans and borrowings `(65,180) `(6,109) `(221) `(776) ` ` `(72,286)
Trade payables, accrued expenses
and other liabilities (18,869) (4,339) (4,788) (1,417) (149) (1,702) (31,264)
Net assets / (liabilities) `18,049 `1,150 `6,431 `3,794 `585 `4,293 `34,302
As at March 31, 2016 and 2017 respectively, every 1% historical bad debts and ageing of accounts receivable.
increase/decrease of the respective foreign currencies Individual risk limits are set accordingly. No single
compared to functional currency of the Company would customer accounted for more than 10% of the accounts
impact results by approximately `343 and `69 respectively. receivable as of March 31, 2016 and 2017, respectively
and revenues for the year ended March 31, 2015, 2016 and
Interest rate risk
2017, respectively. There is no significant concentration
Interest rate risk primarily arises from floating rate of credit risk.
borrowing, including various revolving and other lines of
Financial assets that are neither past due nor impaired
credit. The Companys investments are primarily in short-
term investments, which do not expose it to significant Cash and cash equivalents, unbilled revenues, investment
interest rate risk. The Company manages its net exposure in certificates of deposits and interest bearing deposits
to interest rate risk relating to borrowings by entering with corporates are neither past due nor impaired. Cash
into interest rate swap agreements, which allows it to and cash equivalents with banks and interest-bearing
exchange periodic payments based on a notional amount deposits are placed with corporates, which have high
and agreed upon fixed and floating interest rates. Certain credit-ratings assigned by international and domestic
borrowings are also transacted at fixed interest rates. If credit-rating agencies. Investments substantially include
interest rates were to increase by 100 bps from March 31, investment in liquid mutual fund units. Certificates of
2017, additional net annual interest expense on floating deposit represent funds deposited with banks or other
rate borrowing would amount to approximately `1,226. financial institutions for a specified time period.
Credit risk Financial assets that are past due but not impaired
Credit risk arises from the possibility that customers There is no other class of financial assets that is past
may not be able to settle their obligations as agreed. due but not impaired except for receivables of `8,709
To manage this, the Company periodically assesses the and `9,108 as of March 31, 2016 and 2017, respectively.
financial reliability of customers, taking into account the Of the total receivables, `73,787 and `68,571 as of March
financial condition, current economic trends, analysis of 31, 2016 and 2017, respectively, were neither past due nor
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impaired. The Companys credit period generally ranges are at least AA rated in India based on Indian rating
from 45-60 days from invoicing date. The aging analysis agencies. Settlement and credit risk is reduced by the
of the receivables has been considered from the date the policy of entering into transactions with counterparties
invoice falls due. The age wise break up of receivables, net that are usually banks or financial institutions with
of allowances that are past due, is given below: acceptable credit ratings. Exposure to these risks are
closely monitored and maintained within predetermined
As at March 31,
parameters. There are limits on credit exposure to any
2016 2017 financial institution. The limits are regularly assessed and
Financial assets that are neither determined based upon credit analysis including financial
past due nor impaired `73,787 `68,571 statements and capital adequacy ratio reviews.
Financial assets that are past due
Liquidity risk
but not impaired
Past due 0 30 days 7,924 8,259 Liquidity risk is defined as the risk that the Company will
Past due 31 60 days 3,959 3,929 not be able to settle or meet its obligations on time or at
a reasonable price. The Companys corporate treasury
Past due 61 90 days 2,980 3,410 department is responsible for liquidity and funding as
Past due over 90 days 17,324 19,203 well as settlement management. In addition, processes
Total past due but not impaired `32,187 `34,801 and policies related to such risks are overseen by senior
Counterparty risk management. Management monitors the Companys net
liquidity position through rolling forecasts on the basis
Counterparty risk encompasses issuer risk on marketable of expected cash flows. As of March 31, 2017, cash and
securities, settlement risk on derivative and money market cash equivalents are held with major banks and financial
contracts and credit risk on cash and time deposits. institutions.
Issuer risk is minimized by only buying securities which
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.
The balanced view of liquidity and financial indebtedness Income tax expense consists of the following:
is stated in the table below. This calculation of the net
cash position is used by the management for external Year ended March 31,
communication with investors, analysts and rating 2015 2016 2017
agencies: Current taxes
As at March 31, Domestic `19,163 `20,221 `21,089
2016 2017 Foreign 5,913 5,536 5,412
Cash and cash equivalents `99,049 `52,710 `25,076 `25,757 `26,501
Investments 204,244 292,030 Deferred taxes
Loans and borrowings (125,221) (142,412) Domestic `(247) `(506) `(63)
Net cash position `178,072 `202,328
Foreign (205) 115 (1,225)
16. Foreign currency translation reserve `(452) `(391) `(1,288)
The movement in foreign currency translation reserve Total income tax expense `24,624 `25,366 `25,213
attributable to equity holders of the Company is Income tax expenses are net of reversal of provisions
summarized below: pertaining to earlier periods, amounting to `891, `1,337
and `593 for the year ended March 31, 2015, 2016 and
As at March 31,
2017, respectively.
2016 2017
Balance at the beginning of the The reconciliation between the provision of income tax
year `11,249 `16,116 and amounts computed by applying the Indian statutory
income tax rate to profit before taxes is as follows:
Translation difference related to
foreign operations 5,680 (3,285) Year ended March 31,
Change in effective portion of 2015 2016 2017
hedges of net investment in
Profit before taxes `111,683 `114,933 `110,356
foreign operations (813) 276
Total change during the year `4,867 `(3,009) Enacted income tax rate
in India 33.99% 34.61% 34.61%
Balance at the end of the year `16,116 `13,107
Computed expected tax
17. Income taxes
expense 37,961 39,778 38,194
Income tax expense has been allocated as follows: Effect of:
Year ended March 31, Income exempt from tax (11,698) (10,750) (10,368)
2015 2016 2017 Basis differences that
Income tax expense as per will reverse during a tax
the statement of income `24,624 `25,366 `25,213 holiday period (327) (475) (199)
Income tax included in Income taxed at higher/
other comprehensive (lower) rates (1,910) (3,305) (3,530)
income on:
Income taxes relating
Unrealized gains/(losses) to prior years (891) (1,337) (593)
on investment securities 335 42 594
Changes in unrecognized
Unrealized gains/(losses)
deferred tax assets 343 87 40
on cash flow hedging
derivatives 650 (260) 962 Expenses disallowed
Defined benefit plan for tax purposes 1,225 1,729 1,834
actuarial gains/(losses) (19) (224) 43 Others, net (79) (361) (165)
Total income taxes `25,590 `24,924 `26,812 Total income tax expense `24,624 `25,366 `25,213
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The components of deferred tax assets and liabilities are future taxable income during the carry-forward period
as follows: are reduced.
2030-31. The expiration period of tax holiday for each as issue of bonus shares in India, in the proportion of 1:1,
unit within a SEZ is determined based on the number of i.e. 1 (One) equity share of `2 each for every 1 (one) fully
years that have lapsed following year of commencement paid-up equity share held (including ADS holders) as on
of production by that unit. The impact of tax holidays has the record date, subject to approval by the Members of
resulted in a decrease of current tax expense of `11,412, the Company through Postal Ballot/e-voting. The stock
`10,212 and `9,140 for the years ended March 31, 2015, dividend, if approved, will not affect the ratio of ADSs to
2016 and 2017 respectively, compared to the effective tax equity shares, such that each ADS after the bonus issue
amounts that we estimate we would have been required will continue to represent one equity share of par value
to pay if these incentives had not been available. The per of `2 per share.
share effect of these tax incentives for the years ended
19. Additional capital disclosures
March 31, 2015, 2016 and 2017 was `4.65, `4.16 and `3.76
respectively. The key objective of the Companys capital management is
to ensure that it maintains a stable capital structure with
Deferred income tax liabilities are recognized for all
the focus on total equity to uphold investor, creditor, and
taxable temporary differences except in respect of taxable
customer confidence and to ensure future development of
temporary differences associated with investments
its business. The Company focused on keeping strong total
in subsidiaries where the timing of the reversal of
equity base to ensure independence, security, as well as a
the temporary difference can be controlled and it is
high financial flexibility for potential future borrowings, if
probable that the temporary difference will not reverse
required without impacting the risk profile of the Company.
in the foreseeable future. Accordingly, deferred income
tax liabilities on cumulative earnings of subsidiaries The Companys goal is to continue to be able to return
amounting to `33,920 and `46,905 as of March 31, 2016 excess liquidity to shareholders by continuing to distribute
and 2017, respectively and branch profit tax @15% of the annual dividends in future periods.
US branch profit have not been recognized. Further, it is not
The amount of future dividends/buy back of equity shares
practicable to estimate the amount of the unrecognized
will be balanced with efforts to continue to maintain an
deferred tax liabilities for these undistributed earnings.
adequate liquidity status.
18. Dividends and Buy Back of equity shares
The capital structure as of March 31, 2016 and 2017 was
The Company declares and pays dividends in Indian rupees. as follows:
According to the Companies Act, 2013 any dividend should
be declared out of accumulated distributable profits. A As at March 31,
company may, before the declaration of any dividend, 2016 2017 % Change
transfer a percentage of its profits for that financial year Total equity
as it may consider appropriate to the reserves. attributable to the
equity shareholders of
The cash dividends paid per equity share were `10, `12
the Company `465,172 520,304 11.85%
and `3 during the years ended March 31, 2015, 2016 and
As percentage of total
2017, respectively, including an interim dividend of `5, `5
capital 79% 79%
and `2 for the years ended March 31, 2015, 2016 and 2017.
Current loans and
During the year ended March 31, 2017, the Company has borrowings 107,860 122,801
concluded the buyback of 40 million equity shares as Non-current loans and
approved by the Board of Directors on April 20, 2016. This borrowings 17,361 19,611
has resulted in a total cash outflow of `25,000. In line with Total loans and
the requirement of the Companies Act 2013, an amount borrowings 125,221 142,412 13.73%
of `14,254 and `10,666 has been utilized from the share As percentage of total
premium account and retained earnings respectively. capital 21% 21%
Further, a capital redemption reserves of `80 (representing
Total capital (loans and
the nominal value of the shares bought back) has been
borrowings and equity) `590,393 662,716 12.25%
created as an apportionment from retained earnings.
Consequent to such buy back, share capital has been Loans and borrowings represented 21% and 21% of total
reduced by `80. capital as of March 31, 2016 and 2017, respectively. The
Company is not subject to any externally imposed capital
The Board of Directors in their meeting held on April 25, requirements.
2017 approved issue of stock dividend, commonly known
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Year ended March 31, During the year ended March 31, 2017, the Company
has concluded the sale of the EcoEnergy division for a
2015 2016 2017
consideration of `4,670. Net gain from the sale, amounting
Rendering of services `435,507 `481,369 `522,061 to `4,082 has been recorded as other operating income.
Sale of products 34,038 31,071 28,341
23. Finance expense
Total revenues `469,545 `512,440 `550,402
21. Expenses by nature Year ended March 31,
2015 2016 2017
Year ended March 31,
Interest expense `768 `1,410 `1,916
2015 2016 2017
Exchange fluctuation
Employee on foreign currency
compensation `224,838 `245,534 `268,081 borrowings, net 2,831 4,172 3,267
Sub-contracting/ Total `3,599 `5,582 `5,183
technical fees 52,303 67,769 82,747
24. Finance and other income
Cost of hardware and
software 32,210 30,096 27,216 Year ended March 31,
Travel 21,684 23,507 20,147 2015 2016 2017
Facility expenses 15,167 16,480 19,297 Interest income `15,687 `20,568 `17,307
Depreciation, Dividend income 224 66 311
amortization and
Unrealized gains/
impairment (1) 12,823 14,965 23,107
losses on financial
Communication 5,204 4,825 5,370 instruments
Legal and measured at fair
professional fees 3,682 4,214 4,957 value through profit
Rates, taxes and or loss 375 556
insurance 2,240 2,526 2,261 Gain on sale of
Marketing and brand investments 3,948 2,646 3,486
building 1,598 2,292 2,936 Total `19,859 `23,655 `21,660
Provision for doubtful
25. Earnings per equity share
debts 922 2,004 2,427
Miscellaneous A reconciliation of profit for the year and equity shares
expenses 5,088 5,235 5,836 used in the computation of basic and diluted earnings per
Total cost of revenues, equity share is set out below:
selling and marketing Basic: Basic earnings per share is calculated by dividing the
expenses and general profit attributable to equity shareholders of the Company by
and administrative the weighted average number of equity shares outstanding
expenses `377,759 `419,447 `464,382 during the period, excluding equity shares purchased by
(1)
I ncludes impairment charge on certain intangible assets the Company and held as treasury shares. Equity shares
recognised on acquisitions, amounting to `134, ` Nil held by controlled Wipro Equity Reward Trust (WERT) and
and `3,056 for the year ended March 31, 2015, 2016 Wipro Inc Benefit Trust (WIBT) have been reduced from the
and 2017 respectively. equity shares outstanding for computing basic and diluted
earnings per share. During the year ended March 31, 2015,
WIBT sold 1.8 million shares of Wipro Limited.
Diluted: Diluted earnings per share is calculated by The calculation is performed in respect of share options
adjusting the weighted average number of equity shares to determine the number of shares that could have
outstanding during the period for assumed conversion of been acquired at fair value (determined as the average
all dilutive potential equity shares. Employee share options market price of the Companys shares during the period).
are dilutive potential equity shares for the Company. 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.
26. Employee stock incentive plans Governance, Nomination and Compensation Committee
recommends to WERT certain officers and key employees,
The stock compensation expense recognized for employee
to whom WERT issues shares from its holdings at nominal
services received during the year ended March 31,
price subject to vesting conditions. WERT held 14,829,824,
2015, 2016 and 2017 were `1,138, `1,534 and `1,742
14,829,824 and 13,728,607 shares as at March 31, 2015,
respectively.
2016 and 2017 respectively.
Wipro Equity Reward Trust (WERT)
Wipro Employee Stock Option Plans and Restricted Stock
In 1984, the Company established a controlled trust called Unit Option Plans
the Wipro Equity Reward Trust (WERT). In the earlier
A summary of the general terms of grants under stock
years, WERT purchased shares of the Company out of
option plans and restricted stock unit option plans are
funds borrowed from the Company. The Companys Board
as follows:
As at March 31,
2015 2016 2017
Range of Numbers Weighted Weighted Numbers Weighted Weighted Numbers Weighted Weighted
Exercise Average Average Average Average Average Average
price Remaining Exercise Remaining Exercise Remaining Exercise
Life Price Life Price Life Price
(Months) (Months) (Months)
`480 489 20,181 24 `480.20 20,181 `480.20 20,181 `480.20
`2 6,332,219 25 `2 7,254,326 23 `2.00 7,952,083 19 `2.00
US$0.03 2,576,644 31 US$0.03 3,747,430 24 US$0.03 5,288,783 24 US$0.03
The weighted-average grant-date fair value of options granted during the year ended March 31, 2015, 2016 and 2017
was `658.12, `699.96 and `569.52 for each option, respectively. The weighted average share price of options exercised
during the year ended March 31, 2015, 2016 and 2017 was `603.58, `608.62 and `536.80 for each option, respectively.
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As at March 31, 2016 and 2017, plan assets were primarily The expected benefits are based on the same assumptions
invested in insurer managed funds. used to measure the Companys benefit obligations as of
March 31, 2017.
The Company has established an income tax approved
irrevocable trust fund to which it regularly contributes Sensitivity for significant actuarial assumptions is
to finance the liabilities of the gratuity plan. The funds computed to show the movement in defined benefit
investments are managed by certain insurance companies obligation by 0.5 percentage.
as per the mandate provided to them by the trustees
As of March 31, 2017, every 0.5 percentage point increase/
and the asset allocation is within the permissible limits
(decrease) in discount rate will result in (decrease)/
prescribed in the insurance regulations.
increase of gratuity benefit obligation by approximately
The principal assumptions used for the purpose of `(187) and `207 respectively.
actuarial valuation of these defined benefit plans are as
As of March 31, 2017 every 0.5 percentage point increase/
follows:
(decrease) in expected rate of salary will result in increase/
As at March 31, (decrease) of gratuity benefit obligation by approximately
2016 2017 `176 and `(169) respectively.
Discount rate 7.02% 5.91% c) Provident fund:
Expected return on plan assets 7.02% 5.91%
The details of fund and plan assets are given below:
Expected rate of salary increase 7.31% 6.90%
The expected return on plan assets is based on expectation As at March 31,
of the average long term rate of return expected on 2016 2017
investments of the fund during the estimated term of the Fair value of plan assets `36,019 `40,059
obligations. Present value of defined benefit
The discount rate is primarily based on the prevailing obligation 36,019 40,059
market yields of government securities for the estimated Net (shortfall)/excess ` `
term of the obligations. The estimates of future salary The plan assets have been primarily invested in government
increases considered takes into account the inflation, securities and corporate bonds.
seniority, promotion and other relevant factors. Attrition
rate considered is the managements estimate, based on The principal assumptions used in determining the
previous years employee turnover of the Company. present value obligation of interest guarantee under the
deterministic approach are as follows:
The expected future contribution and estimated future
benefit payments from the fund are as follows: As at March 31,
Expected contribution to the fund during the 2016 2017
year ending March 31, 2018 `1,284 Discount rate for the term of the
Estimated benefit payments from the fund obligation 7.75% 6.90%
for the year ending March 31: Average remaining tenure of
2018 `1,171 investment portfolio 6 years 6 years
2019 1,062 Guaranteed rate of return 8.75% 8.65%
2020 977
2021 870
2022 756
Thereafter 5,378
Total `10,214
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The Company controls The Wipro SA Broad Based Ownership Scheme Trust and Wipro SA Broad Based Ownership
Scheme SPV (RF) (PTY) LTD incorporated in South Africa.
(A)
tep Subsidiary details of Wipro Information Technology Austria GmbH, Wipro Europe Limited, Wipro Portugal S.A,
S
Wipro Digital Aps, Cellent Gmbh, HPH Holdings Corp. and Appirio, Inc. are as follows:
Subsidiaries Subsidiaries Subsidiaries Subsidiaries Country of
Incorporation
Wipro Information Austria
Technology Austria
GmbH
Wipro Technologies Austria
Austria GmbH
New Logic Technologies France
SARL
Wipro Europe Limited U.K.
Wipro UK Limited U.K.
Wipro Portugal S.A. Portugal
Wipro Retail UK Limited U.K.
Wipro do Brasil Brazil
Technologia Ltda
Wipro Technologies Germany
Gmbh
Wipro Do Brasil Brazil
Sistemetas De
Informatica Ltd
Wipro Digital Aps
Designit A/S
Designit Denmark A/S Denmark
Designit Denmark
MunchenGmbH Denmark
Designit Oslo A/S Germany
Designit Sweden AB Norway
Designit T.L.V Ltd. Sweden
Designit Tokyo Ltd. Israel
Denextep Spain Digital, Japan
S.L Spain
Designit Colombia Colombia
SAS
Designit Peru S.A.C. Peru
Cellent GmbH Austria
Frontworx
Informationstechnologie
Gmbh Austria
HPH Holdings Corp. USA
Healthplan Services
Insurance Agency, Inc. USA
Healthplan Services,
Inc. USA
Appirio, Inc. USA
Appirio K.K. Japan
Topcoder, Inc. USA
Appirio Ltd Ireland
Appirio GmbH Germany
Appirio Ltd (UK) UK
Saaspoint, Inc. USA
Appirio Pvt Ltd Singapore
KI Management Inc. USA
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Leave Petition (SLP) before the Supreme Court of India for business unit was regrouped from the former Global Media
the year ended March 31, 2001 to March 31, 2004. and Telecom (GMT) industry vertical into a new industry
vertical named Communications. The Media business
On similar issues for years up to March 31, 2000, the
unit from the former GMT industry vertical has been
Honorable High Court of Karnataka has upheld the claim
realigned with the former Retail, Consumer, Transport
of the Company under section 10A of the Act. For the
and Government (RCTG) industry vertical which has been
year ended March 31, 2009, the appeals are pending
renamed as Consumer Business Unit industry vertical.
before Income Tax Appellate Tribunal (Tribunal). For years
Further, the Network Equipment Provider business unit
ended March 31, 2010 and March 31, 2011, the Dispute
of the former GMT industry vertical has been realigned
Resolution Panel (DRP) allowed the claim of the Company
with the Manufacturing industry vertical to form the
under section 10A of the Act. The Income tax authorities
Manufacturing and Technology industry vertical.
have filed an appeal before the Tribunal.
The revised industry verticals are as follows: Banking,
The Company received the draft assessment order for the
Financial Services and Insurance (BFSI), Healthcare and
year ended March 31, 2012 in March 2016 with a proposed
Lifesciences (HLS), Consumer Business Unit (CBU), Energy,
demand of `4,241 (including interest of `1,376). Based
Natural Resources and Utilities (ENU), Manufacturing
on the DRPs direction, allowing majority of the issues in
and Technology (MNT) and Communications (COMM). IT
favor of the Company, the assessing officer has passed the
final order with Nil demand. However, on similar issue for Services segment also includes Others which comprises
earlier years, the Income Tax authorities have appealed dividend income relating to strategic investments,
before the Tribunal. which are presented within Finance and other Income
in the statement of Income. Key service offerings to
For year ended March 31, 2013 the Company received the customers includes software application development
draft assessment order in December 2016 with a proposed and maintenance, research and development services
demand of `4,118 (including interest of `1,278), arising for hardware and software design, business application
primarily on account of section 10AA issues with respect to services, analytics, consulting, infrastructure outsourcing
exclusion from Export Turnover. The Company has filed an services and business process services.
objection before the DRP within the prescribed timelines.
Comparative information has been restated to give effect
Considering the facts and nature of disallowance and the to the above changes.
order of the appellate authority / Honorable High Court of
Karnataka upholding the claims of the Company for earlier IT Products: The Company is a value added reseller
years, the Company believes that the final outcome of the of desktops, servers, notebooks, storage products,
above disputes should be in favor of the Company and networking solutions and packaged software for leading
there should not be any material adverse impact on the international brands. In certain total outsourcing contracts
financial statements. of the IT Services segment, the Company delivers hardware,
software products and other related deliverables. Revenue
The contingent liability in respect of disputed demands relating to the above items is reported as revenue from the
for excise duty, custom duty, sales tax and other matters sale of IT Products.
amounts to `2,585 and `2,654 as of March 31, 2017 and
2016. However, the resolution of these legal proceedings The Chairman and Managing Director of the Company has
is not likely to have a material and adverse effect on been identified as the Chief Operating Decision Maker
the results of operations or the financial position of the (CODM) as defined by IFRS 8, Operating Segments. The
Company. Chairman of the Company evaluates the segments based
on their revenue growth and operating income.
30. Segment Information
Assets and liabilities used in the Companys business
The Company is organized by the following operating
are not identified to any of the operating segments, as
segments: IT Services and IT Products.
these are used interchangeably between segments.
IT Services: The IT Services segment primarily consists of Management believes that it is currently not practicable
IT Service offerings to customers organized by industry to provide segment disclosures relating to total assets and
verticals. Effective April 1, 2016, The Company realigned liabilities since a meaningful segregation of the available
its industry verticals. The Communication Service Provider data is onerous.
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Information on reportable segments for the year ended March 31, 2017 is as follows:
IT Services IT Reconciling Entity
Products Items total
BFSI HLS CBU ENU MNT COMM Others Total
Revenue 135,967 82,242 83,417 68,883 119,175 38,756 528,440 25,922 (183) 554,179
Other operating 4,082 4,082
income
Segment Result 24,939 9,479 14,493 14,421 23,453 6,149 92,934 (1,680) (506) 90,748
Unallocated (951) (951)
Segment Result 96,065 (1,680) (506) 93,879
Total
Finance expense (5,183)
Finance and other 21,660
income
Profit before tax 110,356
Income tax expense (25,213)
Profit for the period 85,143
Depreciation, 23,107
amortization and
impairment
Information on reportable segments for the year ended March 31, 2016 is as follows:
IT Services IT Reconciling Entity
Products Items total
BFSI HLS CBU ENU MNT COMM Others Total
Revenue 128,147 58,358 79,514 70,866 113,422 37,009 487,316 29,722 (731) 516,307
Segment Result 27,902 12,009 13,590 13,475 24,223 5,990 97,189 (1,007) (386) 95,796
Unallocated 1,064 1,064
Segment Result 98,253 (1007) (386) 96,860
Total
Finance expense (5,582)
Finance and other 23,655
income
Profit before tax 114,933
Income tax expense (25,366)
Profit for the period 89,567
Depreciation, 14,965
amortization and
impairment
Information on reportable segments for the year ended March 31, 2015 is as follows:
IT Services IT Reconciling Entity
BFSI HLS CBU ENU MNT COMM Others Total Products Items total
Revenue 115,505 49,884 66,866 71,228 102,537 34,160 440,180 34,006 (1,004) 473,182
Segment Result 26,801 10,565 13,635 16,934 23,831 6,414 583 98,763 374 (1,385) 97,752
Unallocated (2,329) (2,329)
Segment Result 96,434 374 (1,385) 95,423
Total
Finance expense (3,599)
Finance and other
income 19,859
Profit before tax 111,683
Income tax expense (24,624)
Profit for the period 87,059
Depreciation,
amortization and
impairment 12,823
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The Company has four geographic segments: India, the segment revenues are net of excise duty. Excise
Americas, Europe and Rest of the world. The Americas duty is reported in reconciling items.
refer to North and South America. Revenues from the
e) Revenue from sale of traded cloud based licenses is
geographic segments based on domicile of the customer
reported as part of IT Services revenues.
are as follows:
f) For the purpose of segment reporting, the Company
Year ended March 31, has included the impact of foreign exchange gains /
2015 2016 2017 (losses), net in revenues (which is reported as a part
India 45,814 51,371 46,555 of operating profit in the statement of income).
Americas 227,328 258,615 290,719 g) For evaluating performance of the individual
Europe 124,523 126,417 133,909 operating segments, stock compensation expense is
Rest of the world 75,517 79,904 82,996 allocated on the basis of straight line amortization.
The differential impact of accelerated amortization
`473,182 `516,307 `554,179 of stock compensation expense over stock
No client individually accounted for more than 10% of the compensation expense allocated to the individual
revenues during the year ended March 31, 2015, 2016 or operating segments is reported in reconciling items.
2017. h) The Company generally offers multi-year payment
Management believes that it is currently not practicable terms in certain total outsourcing contracts. These
to provide disclosure of assets by geographical location, payment terms primarily relate to IT hardware,
as meaningful segregation of the available information software and certain transformation services in
is onerous. outsourcing contracts. The finance income on
deferred consideration earned under these contracts
Notes: is included in the revenue of the respective segment
a) Effective April 1, 2016, CODMs review of the segment and is eliminated under reconciling items.
results is measured after including the amortization i) Segment result of HLS industry vertical for the year
and impairment charge for acquired intangibles to ended March 31, 2017 is after considering the impact
the respective segments. Such costs were classified of impairment charge recorded on certain intangible
under reconciling items till the year ended March 31, assets recognised on acquisitions.
2016. Comparative information has been restated to
give effect to the same. j) Net gain from sale of EcoEnergy division amounting
to `4,082 is included as part of IT Services segment
b) Reconciling items includes elimination of inter- result for the year ended March 31, 2017.
segment transactions, dividend income/ gains/
losses relating to strategic investments and other k) Operating income of segments is after recognition of
corporate activities. stock compensation expense arising from the grant
of options:
c) Segment result represents operating profits of the
segments and dividend income and gains or losses Segments Year ended March 31,
(net) relating to strategic investments, which are 2015 2016 2017
presented within Finance and other income in the
statement of Income. IT Services `1,247 `1,424 `1,550
IT Products (10) 2 4
d) Revenues include excise duty of `2, ` Nil and ` Nil
for the year ended March 31, 2015, 2016 and 2017, Reconciling items (99) 108 188
respectively. For the purpose of segment reporting, Total `1,138 `1,534 `1,742
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Business Responsibility
Report
Section A: General Information about the Company ii. Number of National Locations
1. Corporate Identity Number (CIN) of the Company 55 locations
L32102KA1945PLC020800. Please refer complete list of locations available
2. Name of the Company on the Companys website at www.wipro.com
Customers have multiple channels for raising Please refer page no. 37 of this Annual Report.
grievances account managers, client Principle 2
engagement managers, the customer advocacy
2.1 List up to 3 of your products or services whose design
group and through independently administered has incorporated social or environmental concerns,
satisfaction surveys. There are ongoing, risks and/or opportunities.
project based and annual feedbacks from our
Customers. Our work in the space of IT services and consulting
includes cloud based services, managed services,
j) Has the company carried out independent audit/ Internet of things, infrastructure services and
evaluation of the working of this policy by an digital offerings, all of which fundamentally are
internal or external agency premised on improving resource efficiency and
Our Sustainability Report of 2015-16, covering the reducing environmental footprint. We work in the
9 NVG principles has been independently audited. domains of health care and life sciences, government
Please refer to http://wiprosustainabilityreport. services, banking, transportation, energy and natural
com/15-16/?q=assurance-statement for more resources help in enhancing provisioning of services
details. across all sections of the society.
This Business Responsibility Report is also 2.2 For each such product, provide the following details
verified by independent assurance provider DNV in respect of resource use (energy, water, raw material
GL. Refer to page no. 325 to 326 of this Annual etc.) per unit of product (optional): Reduction during
Report for the Assurance Statement. sourcing/ production/distribution achieved since the
previous year throughout the value chain, Reduction
Internal Audit Function: The internal audit during usage by consumers (energy, water) that has
function carries an audit of processes and been achieved since the previous year?
practices across functions of the organization
using the Code of Conduct as the guideline. 1) Wipro EcoEnergy, the clean tech business unit
of Wipro Limited offers Enterprise wide Energy
3. Governance related to BR Management Services to help customers
Indicate the frequency with which the Board of reduce their energy consumption, reduce CO2
Directors, Committee of the Board or CEO to assess emissions, and improve the efficiency in energy
the BR performance of the Company. Within 3 operations. The value proposition of EcoEnergy
months, 3-6 months, Annually, More than 1 year. is to help its customers achieve 6% 18%
Quarterly of effective cost savings through reduced
consumption, optimized operations, monitoring
Does the Company publish a BR or a Sustainability and maintenance over a multi-year engagement.
Report? What is the hyperlink for viewing this report?
How frequently it is published? 2) Wipro offers environment centric solutions to
energy, utilities and natural resources industries
Wipros Annual Report includes an articulation on
with focus on environment, health and safety.
the nine NVG principles. We also publish an annual
These integrated solutions are designed to
Sustainability Report.
help customers meet legal and regulatory
requirements; reduce carbon footprints and
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hazardous emissions; efficiently manage water 3.5 Do you have an employee association that is
and waste; improve occupational Health Safety, recognized by management?
process and asset safety; and reduce risks Please refer page no. 50 of this Annual Report.
to employees, proximate communities and
environment. 3.6 What percentage of your permanent employees are
members of this recognized employee association?
3) Wipro offers a unique suite of Sustainability
Refer to Freedom of Association section of MD&A.
and Energy Management applications to
manufacturing industry clients which helps 3.7 Please indicate the Number of complaints relating
them track real-time consumption, perform to child labor, forced labor, involuntary labor, sexual
higher asset utilization and predict energy harassment, in the last financial year, and those that
consumption patterns. are pending, as on the end of the financial year.
2.3 Does the company have procedures in place for Please refer page no. 37 of this Annual Report.
sustainable sourcing (including transportation)? 3.8 What percentage of your under mentioned employees
If yes, what percentage of your inputs was sourced were given safety & skill up-gradation training in the
sustainably? Also, provide the details thereof, in last year?
about 50 words or so.
1. Permanent Employees
Green Procurement program for ICT Hardware and
2. Permanent Women Employees
Electronic End of Life as part of which we sourced
more than 12,000 EPEAT registered electronic 3. Casual/Temporary/Contractual Employees
products in 2016. 4. Employees with Disabilities
Please refer page no. 55 of this Annual Report. Safety training is provided to 100% of the employees.
2.4 Has the company taken any steps to procure goods For information on skill up-gradation training, please
and services from local & small producers, including refer page no. 52 of this Annual Report.
communities surrounding their place of work? If yes,
what steps have been taken to improve their capacity Principle 4
and capability of local and small vendors? 4.1 Has the company mapped its internal and external
Local Procurement: Wipro encourages sourcing from stakeholders?
the local economy. Local sourcing reduces costs, Yes
provides local employment benefits and reduced
4.2 Out of the above, has the company identified
environmental footprint in sourcing. 45 % of suppliers
the disadvantaged, vulnerable & marginalized
spend is from suppliers based in India.
stakeholders?
Please refer page no. 55 of this Annual Report.
Refer to Sustainability Report 2015-16.
2.5 Does the company have a mechanism to recycle h t t p : // w i p r o s u s t a i n a b i l i t y r e p o r t . c o m /1 5 -
products and waste? If yes what is the percentage of 16/?q=partnering-social-change
recycling of products and waste (separately as <5%,
4.3 Are there any special initiatives undertaken by
5-10%, >10%). Also, provide the details thereof, in
the company to engage with the disadvantaged,
about 50 words or so.
vulnerable and marginalized stakeholders? If so,
Please refer page no. 62 of this Annual Report. provide the details thereof, in about 50 words or so.
Principle 3 Please refer page no. 58 of this Annual Report.
3.1 Please indicate the Total number of employees. Principle 5
Please refer page no. 52 of this Annual Report. 5.1 Does the policy of the company on human rights
3.2 Please indicate the Total number of employees hired cover only the company or extend to the Group/Joint
on temporary/contractual/casual basis. Ventures/Suppliers/Contractors/NGOs/Others?
Please refer page no. 52 of this Annual Report. Human Rights policy extends to the Group/Joint
3.3 Please indicate the Number of permanent women Ventures/Suppliers/Contractors/NGOs etc.
employees. 5.2 How many stakeholder complaints have been
Please refer page no. 52 of this Annual Report. received in the past financial year, and what
percentage was satisfactorily resolved by the
3.4 Please indicate the Number of permanent employees management?
with disabilities
None
Please refer page no. 52 of this Annual Report.
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Assurance Statement
1
The VeriSustain protocol is available on www.dnvgl.com
* Assurance Engagements other than Audits or Reviews of Historical Financial Information.
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Review of supporting evidence for key sustainability related statements, claims and data in the Report against the
nine principles;
Review of the processes for gathering and consolidating the specified performance data and, for a sample, checking
the data consolidation.
During the assurance process, we did not come across limitations to the scope of the agreed assurance engagement. The
reported data on economic performance, expenditure towards Corporate Social Responsibility (CSR) and other financial data are
based on audited financial statements issued by the Companys statutory auditors and was excluded from our scope of work.
Opinion and Opportunities for Improvement
On the basis of the moderate level verification undertaken, nothing came to our attention to suggest that the Report does not
properly describe Wipros disclosure requirements as set out by SEBI, including the referenced information to its Sustainability
Report; however, we recommend that the disclosures in this report could be further detailed to explicitly bring out the required
information especially in section a and b of the report.
For DNV GL
Glossary
Corporate
information