exv19w1

Exhibit 19.1

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET


					(Rs. in Million)
					As of June 30,				As of March 31,
	Schedule				2008		2007		2008

SOURCES OF FUNDS
SHAREHOLDERS’ FUNDS
Share capital		1				2,924		2,918		2,923
Shares issuable [Refer Note 19(7)]			540
Shares issuable to controlled trust			(540	)		—		—		—

Share application money pending allotment						23		45		40
Reserves and surplus		2				115,412		99,136		113,991

						118,359		102,099		116,954

LOAN FUNDS
Secured loans		3				2,048		1,276		2,072
Unsecured loans		4				48,645		222		42,778

						50,693		1,498		44,850
Minority Interest						135		78		116

						169,187		103,675		161,920

APPLICATION OF FUNDS
FIXED ASSETS
Goodwill						44,847		7,836		42,209
Gross block		5				59,788		38,900		56,280
Less: Accumulated depreciation						30,232		20,055		28,067

Net block						29,556		18,845		28,213
Capital work-in-progress and advances						15,328		11,156		13,370

						89,731		37,837		83,792

INVESTMENTS		6				47,456		26,631		16,022

DEFERRED TAX ASSET (NET)						558		522		529

CURRENT ASSETS, LOANS AND ADVANCES
Inventories		7				7,760		4,171		6,664
Sundry debtors		8				43,042		28,958		40,453
Cash and bank balances		9				18,348		18,181		39,270
Loans and advances		10				33,646		20,494		29,610

						102,796		71,804		115,997

LESS: CURRENT LIABILITIES AND PROVISIONS
Liabilities		11				55,692		25,580		39,890
Provisions		12				15,662		7,539		14,530

						71,354		33,119		54,420

NET CURRENT ASSETS						31,442		38,685		61,577

						169,187		103,675		161,920

Notes to Accounts		19

The schedules referred to above form an integral part of the consolidated balance sheet


As per our report attached	For and on behalf of the Board of Directors

for B S R & Co.	Azim Premji	B C Prabhakar	Girish S Paranjpe	Suresh Vaswani
Chartered Accountants	Chairman	Director	Jt CEO, IT Business &	Jt CEO, IT Business &
			Director	Director


Rajesh Arora	Suresh C Senapaty	V Ramachandran	Jagdish Sheth
Partner	Chief Financial Officer	Company Secretary	Director
Membership No. 76124	& Director

Bangalore
July 18, 2008

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED PROFIT AND LOSS ACCOUNT


				*(Rs. in Million except share data)*
										Year ended
				Quarter ended June 30,						March 31,
	Schedule			2008			2007		2008

INCOME
Gross sales and services					60,698			42,756		201,451
Less: Excise duty					333			396		1,655

Net sales and services					60,365			42,360		199,796
Other income		13			506			672		4,174

					60,871			43,032		203,970

EXPENDITURE
Cost of sales and services		14			41,774			29,813		140,244
Selling and marketing expenses		15			4,595			2,882		14,216
General and administrative expenses		16			3,218			2,045		10,750
Interest		17			775			131		1,690

					50,362			34,871		166,900


PROFIT BEFORE TAXATION					10,509			8,161		37,070
Provision for taxation including fringe benefit tax		19	(9)		1,526			1,005		4,550

Profit before minority interest / share in earnings of associates					8,983			7,156		32,520

Minority interest					(12	)		3		(24	)
Share in earnings of associates					107			97		333

PROFIT FOR THE PERIOD					9,078			7,256		32,829

Appropriations
Interim dividend					—			—		2,919
Proposed dividend					—			—		5,846
Tax on dividend					—			—		1,489

TRANSFER TO GENERAL RESERVE					9,078			7,256		22,575

EARNINGS PER SHARE — EPS
Equity shares of par value Rs. 2/- each
Basic (in Rs.)					6.25			5.00		22.62
Diluted (in Rs.)					6.21			4.98		22.51

Number of shares for calculating EPS
Basic					1,453,624,239			1,451,056,810		1,451,127,719
Diluted					1,461,042,661			1,457,797,939		1,458,239,060

Notes to Accounts		19

The schedules referred to above form an integral part of the consolidated profit and loss account


As per our report attached	For and on behalf of the Board of Directors

for B S R & Co.	Azim Premji	B C Prabhakar	Girish S Paranjpe	Suresh Vaswani
Chartered Accountants	Chairman	Director	Jt CEO, IT Business &	Jt CEO, IT Business &
			Director	Director


Rajesh Arora	Suresh C Senapaty	V Ramachandran	Jagdish Sheth
Partner	Chief Financial Officer	Company Secretary	Director
Membership No. 76124	& Director

Bangalore
July 18, 2008

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED CASH FLOW STATEMENT


	Quarter Ended June 30,						Year ended March 31,
	2008			2007			2008

A. Cash flows from operating activities:
Profit before tax		10,509			8,161			37,070

Adjustments:

Depreciation and amortization		1,578			1,176			5,359
Amortisation of stock compensation		433			286			1,166
Unrealised exchange differences — net		697			(406	)		(595	)
Interest on borrowings		775			131			1,690
Dividend / interest — net		(918	)		(648	)		(2,802	)
(Profit) / Loss on sale of investments		(142	)		(351	)		(771	)
Gain on sale of fixed assets		(5	)		(159	)		(174	)
Working capital changes:
Trade and other receivable		(5,430	)		(1,096	)		(11,885	)
Loans and advances		(1,982	)		(963	)		(5,157	)
Inventories		(1,096	)		(20	)		(1,565	)
Trade and other payables		3,986			(1,513	)		6,182

Net cash generated from operations		8,405			4,598			28,518
Direct taxes paid, net of refunds		1,427			(1,264	)		(5,459	)

Net cash generated by operating activities		9,832			3,334			23,059


B. Cash flows from investing activities:

Acquisition of property, fixed assets plant and equipment (including advances)		(4,208	)		(2,979	)		(14,226	)
Proceeds from sale of fixed assets		91			232			479
Purchase of investments		(131,096	)		(32,373	)		(231,684	)
Proceeds on sale / from maturities on investments		99,912			39,438			250,013
Intercorporate deposit		(250	)		150			150
Net payment for acquisition of businesses		(81	)		(65	)		(32,790	)
Dividend / interest income received		918			503			2,490

Net cash generated by / (used in) investing activities		(34,714	)		4,906			(25,568	)


C. Cash flows from financing activities:

Proceeds from exercise of employee stock option		27			4			541
Share application money pending allotment		23			45			40
Interest paid on borrowings		(775	)		(131	)		(1,690	)
Dividends paid (including distribution tax)		—			(7,509	)		(12,632	)
Repayment of borrowings / loans		(15,502	)		(574	)		(74,970	)
Proceeds of borrowings / loans		19,782			(1,755	)		110,641
Proceeds from issuance of shares by subsidiary		—			54			55

Net cash generated by / (used in) financing activities		3,555			(9,866	)		21,985

Net (decrease) / increase in cash and cash equivalents during the period		(21,327	)		(1,626	)		19,476
Cash and cash equivalents at the beginning of the period		39,270			19,822			19,822
Effect of translation of cash balance		405			(15	)		(28	)



Cash and cash equivalents at the end of the period		18,348			18,181			39,270


As per our report attached	For and on behalf of the Board of Directors

for B S R & Co.	Azim Premji	B C Prabhakar	Girish S Paranjpe	Suresh Vaswani
Chartered Accountants	Chairman	Director	Jt CEO, IT Business &	Jt CEO, IT Business &
			Director	Director


Rajesh Arora	Suresh C Senapaty	V Ramachandran	Jagdish Sheth
Partner	Chief Financial Officer	Company Secretary	Director
Membership No. 76124	& Director

Bangalore
July 18, 2008

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET


	*(Rs. in Million except share data)*
	As of June 30,						As of March 31,
	2008			2007			2008

SCHEDULE 1 SHARE CAPITAL

Authorised capital
1,650,000,000 (2007 & 2008: 1,650,000,000) equity shares of Rs. 2 each		3,300			3,300			3,300
25,000,000 (2007 & 2008: 25,000,000) 10.25 % redeemable cumulative preference shares of Rs. 10 each		250			250			250

		3,550			3,550			3,550


Issued, subscribed and paid-up capital

1,462,008,502 ( 2007: 1,459,113,115, 2008: 1,461,453,320) equity shares of Rs. 2 each [Refer Note 19 (2)]		2,924			2,918			2,923

		2,924			2,918			2,923


SCHEDULE 2 RESERVES AND SURPLUS

Capital reserve
Balance brought forward from previous period		1,144			47			47
Addition during the period		—			—			1,097

		1,144			47			1,144

Securities premium account
Balance brought forward from previous period		25,373			24,530			24,530
Add: Exercise of stock options by employees		258			42			843

		25,631			24,572			25,373

Translation reserve
Balance brought forward from previous period		(10	)		(247	)		(247	)
Movement during the period		183			(461	)		237

		173			(708	)		(10	)

Restricted stock units reserve [Refer note 19(8)]
Employee Stock Options Outstanding		8,183			5,127			5,023
Less: Deferred Employee Compensation Expense		6,126			3,922			3,206

		2,057			1,205			1,817

General reserve
Balance brought forward from previous period		86,764			67,790			67,790
Additions [Refer note 19 (3) (ii)]		8,987			5,880			18,974

		95,751			73,670			86,764

Unrealised gains/(losses)

Hedging reserve [Refer note 19(5)]
Unrealised gain/(loss) on cash flow hedging derivatives, net		(9,344	)		350			(1,097	)

Summary of reserves and surplus
Balance brought forward from previous period		113,991			93,042			93,042
Additions		9,668			6,555			22,046
Deletions		(8,247	)		(461	)		(1,097	)

		115,412			99,136			113,991

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

(Rs. in Million)

As of June 30,

As of March 31,

2008

2007

2008

SCHEDULE 3 SECURED LOANS

Term loans ¹

507

604

513

Cash credit facilities ¹

519

651

535

Finance lease obligation

1,022

1,024

2,048

1,276

2,072

¹ Term loans and cash credit facility are secured by hypothecation of stock-in-trade, book debts, immovable/movable properties and other assets



SCHEDULE 4 UNSECURED LOANS

External Commercial Borrowings	14,192	—	14,070
Borrowing from banks	33,955	176	28,368
Loan from financial institutions	399	—	245
Interest free loan from State Governments	41	46	41
Others	58	—	54

	48,645	222	42,778

SCHEDULE 5 FIXED ASSETS


*(Rs. in Million)*
PARTICULARS	GROSS BLOCK									ACCUMULATED DEPRECIATION									NET BLOCK
	As of April				Deductions/			As of June		As of April		Depreciation		Deductions /			As of June		As of June		As of March
	1, 2008		Additions		adjustments ²			30, 2008		1, 2008		for the period		adjustments ²			30, 2008		30, 2008		31, 2008

(a) Tangible fixed assets
Land (including leasehold)		2,744		399		(13	)		3,156		8		—		—			8		3,148		2,736
Buildings		10,000		364		(145	)		10,509		1,238		67		60			1,365		9,144		8,762
Plant & machinery ³		31,029		1,205		(633	)		32,867		20,162		1,165		389			21,716		11,151		10,867
Furniture, fixture and equipments		7,302		452		(121	)		7,875		4,368		182		113			4,663		3,212		2,934
Vehicles		2,566		168		73			2,661		1,416		126		(40	)		1,502		1,159		1,150

(b) Intangible fixed assets
Technical know-how		359		—		(23	)		382		345		—		36			381		1		14
Patents, trade marks and rights		2,280		—		(58	)		2,338		530		38		29			597		1,741		1,750

Previous year - 31 March 2008		56,280		2,588		(920	)		59,788		28,067		1,578		587			30,232		29,556		28,213

		37,287		19,729		736			56,280		18,993		5,359		3,715			28,067		28,213


²		- Adjustments include effect of foreign exchange translation

³		- Plant and machinery includes computers and computer software.

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET


	*(Rs. in Million)*
	As of June 30,				As of March 31,
	2008		2007		2008

SCHEDULE 6 INVESTMENTS

Investments

Investments Long Term — unquoted
Investment in Associates
Wipro GE Medical Systems Private Ltd ⁴[Refer note 19(6)]		1,451		1,107		1,343

		1,451		1,107		1,343


Other Investments — unquoted		362		363		362

Current Investments — quoted
Investments in Indian money market mutual funds		45,643		25,161		14,317

		45,643		25,161		14,317



		47,456		26,631		16,022




4 Equity investments in this company carry certain restrictions on transfer of shares that are normally provided for in shareholders’ agreements

SCHEDULE 7 INVENTORIES
Finished goods		3,117		1,353		2,181
Raw materials		3,518		1,890		2,950
Stock in process		664		638		1,078
Stores and spares		461		290		455

		7,760		4,171		6,664


SCHEDULE 8 SUNDRY DEBTORS
(Unsecured)
Debts outstanding for a period exceeding six months
Considered good		5,039		1,380		3,109
Considered doubtful		1,192		1,336		1,096

		6,231		2,716		4,205


Other debts
Considered good		38,003		27,578		37,344
Considered doubtful		43		3		—

		44,277		30,297		41,549

Less: Allowance for doubtful debts		1,235		1,339		1,096

		43,042		28,958		40,453


SCHEDULE 9 CASH AND BANK BALANCES
Balances with bank:
In current account		7,033		5,747		10,209
In deposit account		10,189		11,911		28,078
Cash, cheques on hand and funds in transit		1,126		523		983

		18,348		18,181		39,270

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET


	*(Rs. in Million)*
	As of June 30,		As of March 31,
	2008		2007		2008
SCHEDULE 10 LOANS AND ADVANCES
(Unsecured, considered good unless otherwise stated)
Advances recoverable in cash or in kind or for value to be received Considered good
- Prepaid expenses		3,870		1,782		2,800
- Advance to suppliers / expenses		1,636		816		1,402
- Employee travel & other advances		1,559		1,060		1,503
- Derivative asset		1,726		492		938
- Others		5,099		2,400		4,378

		13,890		6,550		11,021
Considered doubtful		169		193		169

		14,059		6,743		11,190
Less: Provision for doubtful advances		169		193		169

		13,890		6,550		11,021


Other deposits		1,250		1,685		1,911
Advance income tax		5,266		5,261		7,116
Inter corporate deposit		750		500		500
Balances with excise and customs		598		331		548
Unbilled revenue		11,892		6,167		8,514

		33,646		20,494		29,610


SCHEDULE 11 LIABILITIES
Acquisition related liabilities		—		—		207
Accrued expenses and statutory liabilities		20,794		13,498		18,115
Sundry creditors		15,184		9,363		13,082
Unearned revenues		4,709		1,152		4,269
Advances from customers		1,758		1,487		1,642
Derivative liability		13,243		76		2,571
Unclaimed dividends		4		4		4

		55,692		25,580		39,890


SCHEDULE 12 PROVISIONS
Employee retirement benefits		2,629		1,857		2,737
Warranty provision		930		811		941
Provision for tax		5,264		3,164		4,013
Proposed dividend		5,846		1,459		5,846
Tax on dividend		993		248		993

		15,662		7,539		14,530

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED PROFIT AND LOSS ACCOUNT


							*(Rs. in Million)*
							Year ended
	Quarter ended June 30,						March 31,
	2008			2007			2008

SCHEDULE 13 OTHER INCOME

Dividend on mutual fund units		574			354			1,428
Profit on sale of invetsments		142			351			771
Interest on debt instruments and others		344			294			1,576
Exchange differences — net		(697	)		(571	)		(423	)
Miscellaneous income		143			244			822

		506			672			4,174


SCHEDULE 14 COST OF SALES AND SERVICES

Employee compensation costs		21,359			15,730			70,655
Raw materials, finished and process stocks (refer Schedule 18)		10,582			7,297			36,263
Sub contracting / technical fees / third party application		2,782			2,071			10,911
Travel		1,520			1,028			5,010
Depreciation		1,471			1,096			4,965
Repairs		1,068			579			2,686
Communication		591			388			1,970
Power and fuel		424			338			1,532
Outsourced technical services		334			238			1,109
Rent		372			268			1,286
Stores and spares		240			227			946
Insurance		99			49			238
Rates and taxes		80			21			137
Miscellaneous		852			483			2,536

		41,774			29,813			140,244

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED PROFIT AND LOSS ACCOUNT


	*(Rs. in Million)*
					Year ended
	Quarter ended June 30,				March 31,
	2008		2007		2008

SCHEDULE 15 SELLING AND MARKETING EXPENSES

Employee compensation costs		2,286		1,417		7,045
Advertisement and sales promotion		931		395		2,385
Travel		307		310		1,023
Carriage and freight		265		275		1,137
Commission on sales		185		64		585
Rent		133		106		470
Communication		80		82		349
Conveyance		41		30		136
Depreciation		70		53		245
Repairs to buildings		29		11		79
Insurance		12		10		35
Rates and taxes		7		8		34
Miscellaneous expenses		249		121		693

		4,595		2,882		14,216


SCHEDULE 16 GENERAL AND ADMINISTRATIVE EXPENSES

Employee compensation costs		1,528		941		5,026
Travel		368		252		1,198
Repairs and mantainance		154		125		565
Provision for bad debts		139		94		289
Manpower outside services		57		45		223
Depreciation		37		27		148
Rates and taxes		9		14		57
Insurance		26		19		81
Rent		61		20		124
Auditors’ remuneration
Audit fees		5		4		24
For certification including tax audit		—		—		2
Out of pocket expenses		1		1		2
Miscellaneous expenses		833		503		3,011

		3,218		2,045		10,750

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED PROFIT AND LOSS ACCOUNT


	*(Rs. in Million)*
						Year ended
	Quarter ended June 30,					March 31,
	2008			2007		2008

SCHEDULE 17 INTEREST

Cash credit and others		775			131		1,690


SCHEDULE 18

RAW MATERIALS, FINISHED AND PROCESSED STOCKS

Consumption of raw materials and bought out components :

Opening stocks		2,950			1,584		1,584
Add: Stock taken over on acquisition		—			—		380
Add: Purchases		5,350			4,634		18,076
Less: Closing stocks		3,518			1,890		2,950

		4,782			4,328		17,090

Purchase of finished products for sale		6,322			2,692		19,576


(Increase) / Decrease in finished and process stocks :
Opening stock : In process		1,078			491		491
: Finished products		2,181			1,777		1,777
Stock taken over on acquisition : In process		—			—		8
: Finished products		—			—		580
Less: Closing stock : In process		664			638		1,078
: Finished products		3,117			1,353		2,181

		(522	)		277		(403	)

		10,582			7,297		36,263

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

		SCHEDULE 19 — NOTES TO

		ACCOUNTS Company overview

		Wipro Limited (Wipro), together with its subsidiaries and associates (collectively, the Company or the group) is a leading India based provider of IT Services, including Business Process Outsourcing (BPO) services, globally. Further, Wipro has other businesses such as IT Products and Consumer Care and Lighting. Wipro is headquartered in Bangalore, India.

1.		Significant accounting policies

i		Basis of preparation of financial statements

		The condensed consolidated financial statements (financial statements) are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on accrual basis. GAAP comprises Accounting Standards (AS) issued by the Institute of Chartered Accountants of India (ICAI) and other generally accepted accounting principles in India. The recognition, measurement and disclosure provisions of AS 25, Interim Financial Reporting, issued by ICAI have been followed for these financial statements. These financial statements should be read in conjunction with the consolidated annual financial statements of the Company for the year ended as at March 31, 2008. The accounting policies followed in preparation of the financial statements are consistent with those followed in the preparation of the consolidated annual financial statements. Effective April 1, 2008 the Company adopted Accounting Standard 30, Financial Instruments: Recognition and Measurement (AS 30). The adoption of AS 30 has been described in Note 4 of the notes to accounts.

ii.		Principles of consolidation

		The financial statements include the financial statements of Wipro and all its subsidiaries, which are more than 50% owned or controlled.

		The financial statements of the parent company and its majority owned / controlled subsidiaries have been combined on a line by line basis by adding together the book values of all items of assets, liabilities, incomes and expenses after eliminating all inter-company balances / transactions and resulting unrealized gain / loss.

		The financial statements are prepared using uniform accounting policies for similar transactions and other events in similar circumstances.

iii.		Use of estimates

		The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities on the date of the financial statements and reported amounts of revenues and expenses during the period reported. Actual results could differ from those estimates.

iv.		Goodwill

		Goodwill arising on consolidation / acquisition of assets is not amortised. It is tested for impairment on a periodic basis and written-off if found impaired.

v.		Fixed assets, intangible assets and work-in-progress

		Fixed assets are stated at historical cost less accumulated depreciation.

		Interest on borrowed money allocated to and utilized for qualifying fixed assets, pertaining to the period up to the date of capitalization is capitalized. Assets acquired on direct finance lease are capitalized at the gross value and interest thereon is charged to profit and loss account.

		Intangible assets are stated at the consideration paid for acquisition less accumulated amortization.

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

		Advances paid towards the acquisition of fixed assets outstanding as of each balance sheet date and the cost of fixed assets not ready for use before such date are disclosed under capital work -in-progress. Lease payments under operating lease are recognised as an expense in the profit and loss account.

		Payments for leasehold land are amortised over the period of lease.

vi.		Investments

		Long term investments (other than investment in associate) are stated at cost less provision for diminution in the value of such investments. Diminution in value is provided for where the management is of the opinion that the diminution is of other than temporary nature. Short term investments are valued at lower of cost and net realizable value.

		Investment in associate is accounted under the equity method.

vii.		Inventories

		Finished goods are valued at cost or net realizable value, whichever is lower. Other inventories are valued at cost less provision for obsolescence. Small value tools and consumables are charged to consumption on purchase. Cost is determined using weighted average method.

viii.		Provisions and contingent liabilities

		The Company creates a provision when there is a present obligation as a result of an obligating event that probably requires an outflow of resources and a reliable estimate can be made o f the amount of the outflow.

		A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

ix.		Revenue recognition

		Services:

		Revenue from Software development services comprises revenue from time and material and fixed-price contracts. Revenue from time and material contracts is recognised as related services are performed. Revenue from fixed-price, fixed-time frame contracts is generally recognised in accordance with the “Percentage of Completion” method.

		Revenues from BPO services are derived from both time-based and unit-priced contracts. Revenue is recognised as the related services are performed, in accordance with the specific terms of the contract with the customers.

		Revenue from application maintenance services is recognized over the period of the contract.

		Revenue from customer training, support and other services is recognised as the related services are performed.

		Provision for estimated losses, if any, on incomplete contracts are recorded in the period in which such losses become probable based on the current contract estimates.

		‘Unbilled revenues’ included in loans and advances represent cost and earnings in excess of billings as at the balance sheet date. ‘Unearned revenues’ included in current liabilities represent billing in excess of revenue recognised.

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

		Products:

		Revenue from sale of products is recognised, in accordance with the sales contract, on dispatch from the factories/ warehouse of the Company. Revenues from product sales are shown as net of excise duty, sales tax separately charged and applicable discounts.

		Others:

		Agency commission is accrued when shipment of consignment is dispatched by the principal.

		Profit on sale of investments is recorded upon transfer of title by the Company. It is determined as the difference between the sales price and the then carrying amount of the investment.

		Interest is recognised using the time-proportion method, based on rates implicit in the transaction.

		Dividend income is recognised where the Company’s right to receive dividend is established.

		Export incentives are accounted on accrual basis and include estimated realizable values/ benefits from special import licenses and advance licenses.

		Other income is recognised on accrual basis.

x.		Warranty cost

		The Company accrues the estimated cost of warranties at the time when the revenue is recognised. The accruals are based on the Company’s historical experience of material usage and service delivery costs.

xi.		Foreign currency transactions

		The Company is exposed to currency fluctuations on foreign currency transactions. Foreign currency transactions are accounted in the books of accounts at the average rate for the month.

		Transaction:

		The difference between the rate at which foreign currency transactions are accounted and the rate at which they are realized is recognised in the profit and loss account.

		Translation:

		Monetary foreign currency assets and liabilities at period-end are translated at the closing rate. The difference arising from the translation is recognised in the profit and loss account, except for the exchange difference arising on monetary items that qualify as hedging instruments in a cash flow hedge or hedge of a net investment. In such cases the exchange difference is initially recognized in hedging reserve or translation reserve respectively. Such exchange differences are subsequently recognized in the profit and loss account on occurrence of the underlying hedged transaction or on disposal of the investment respectively.

		Integral operations:

		In respect of integral operations, monetary assets and liabilities are translated at the exchange rate prevailing at the date of the balance sheet. Non-monetary items are translated at the historical rate. The items in the profit and loss account are translated at the average exchange rate during the period. The differences arising out of the translation are recognised in the profit and loss account.

		Non-integral operations:

		In respect of non-integral operations, assets and liabilities are translated at the exchange rate prevailing at the date of the balance sheet. The items in the profit and loss account are translated at the average exchange rate during the period. The differences arising out of the translation are transferred to translation reserve.

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

xii.		Financial Instruments

		Derivative financial instruments and Hedge accounting:

		The Company is exposed to foreign currency fluctuations on foreign currency asse ts, liabilities, net investment in a foreign operation and forecasted cash flows denominated in foreign currency. The Company limits the effects of foreign exchange rate fluctuations by following established risk management policies including the use of derivatives. The Company enters into derivative financial instruments, where the counterparty is a bank.

		Effective 1 April, 2007, based on the recognition and measurement principles set out in the AS 30, changes in the fair values of derivative financial instruments designated as cash flow hedges are recognized directly in shareholders’ funds and are reclassified into the profit and loss account upon the occurrence of the hedged transaction. The Company also designated derivative financial instruments as hedges of net investment in non-integral foreign operation. The portion of the changes in fair value of derivative financial instruments that is determined to be an effective hedge is recognised in the shareholders’ funds and would be recognised in the profit and loss account upon sale or disposal of related non-integral foreign operation. Changes in fair value relating to the ineffective portion of the hedges and derivatives not designated as hedges are recognized in the profit and loss account as they arise.

		On 1 April 2008, the Company early adopted AS 30 and the limited revisions to other accounting standards which come into effect upon adoption of AS 30. AS 30 states that particular sections of other accounting standards; Accounting Standard (AS) 4, Contingencies and Events Occurring after Balance sheet Date, to the extent it deals with contingencies, Accounting Standard (AS) 11 (revised 2003), The Effects of Changes in Foreign Exchange Rates, to the extent it deals with the ‘forward exchange contracts’ and Accounting Standard (AS) 13, Accounting for Investments, except to the extent it relates to accounting for investment properties, will stand withdrawn from the date AS 30 becomes mandatory.

		Accordingly, the Company continues to comply with the guidance under these accounting standards; AS 4 — relating to Contingencies, AS 11 — relating to Forward contracts and AS 13 until AS 30 becomes mandatory.

		The impact of adoption of AS 30 has been described in Note 4 of the notes to accounts.

		Non-Derivative Financial Instruments

		A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial assets of the Company mainly include cash and bank balances, sundry debtors, unbilled revenues, finance lease receivables, employee travel and other advances, other loans and advances and derivative financial instruments with a positive fair value. Financial liabilities of the Company mainly comprise secured and unsecured loans, sundry creditors, accrued expenses and derivative financial instruments with a negative fair value. Financial assets / liabilities are recognized on the balance sheet when the Company becomes a party to the contractual provisions of the instrument. Financial assets are derecognized when all of risks and rewards of the ownership have been transferred.

		The transfer of risks and rewards is evaluated by comparing the exposure, before and after the transfer, with the variability in the amounts and timing of the net cash flows of the transferred assets

		Short-term receivables with no stated interest rates are measured at original invoice amount, if the effect of discounting is immaterial. Non-interest-bearing deposits are discounted to their present value.

		The Company measures the financial liabilities, except for derivative financial liabilities at amortized cost using the effective interest method. The Company measures the short-term payables with no stated rate of interest at original invoice amount, if the effect of discounting is immaterial.

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

xiii.		Depreciation and amortization

		Depreciation is provided on straight line method at rates not lower than rates specified in Schedule XIV to the Companies Act, 1956. In some cases, assets are depreciated at the rates which are higher than Schedule XIV rates to reflect the economic life of asset. Management estimates the useful life of various assets as follows:


Nature of asset		Life of asset

Building		30 – 60 years
Plant and machinery		5 – 21 years
Office equipment		3 – 10 years
Vehicles		4 years
Furniture and fixtures		3 – 10 years
Data processing equipment and software		2 – 6 years

		Fixed assets individually costing Rs. 5,000/- or less are depreciated at 100%.

		Assets under capital lease are amortised over their estimated useful life or the lease term, whichever is lower. Intangible assets are amortized over their estimated useful life. For various brands acquired by the Company, the estimated useful life has been determined ranging between 20 to 25 years based on expected life, performance, market share, niche focus and longevity of the brand. Accordingly, such intangible assets are being amortised over the determined useful life.

xiv.		Impairment of assets

		Financial assets:

		The Company assesses at each balance sheet date whether there is any objective evidence that a financial asset or group of financial assets is impaired. If any such indication exists, the Company estimates the amount of impairment loss. The amount of loss for short-term receivables is measured as the difference between the assets carrying amount and undiscounted amount of future cash flows. Reduction, if any, is recognized in the profit and loss account. If at the balance sheet date there is any indication that if a previously assessed impairment loss no longer exists, the recognised impairment loss is reversed, subject to maximum of initial carrying amount of the short-term receivable.

		Other than financial assets:

		The Company assesses at each balance sheet date whether there is any indication that a non-financial asset including goodwill may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs to is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the profit and loss account. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost. In respect of goodwill the impairment loss will be reversed only when it was caused by specific external events and their effects have been reversed by subsequent external events.

xv.		Provision for retirement benefits

		Provident fund:

		Employees receive benefits from a provident fund. The employee and employer each make monthly contributions to the plan equal to 12% of the covered employee’s salary. A portion of the contribution is made to the provident fund trust managed by the Company, while the remainder of the contribution is made to the Government’s provident fund.

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

		Compensated absences:

		The employees of the Company are entitled to compensated absence. The employees can carry-forward a portion of the unutilized accrued compensated absence and utilize it in future periods or receive cash compensation at retirement or termination of employment for the unutilized accrued compensated absence. The Company records an obligation for compensated absences in the period in which the employee renders the services that increase this entitlement. The Company measures the expected cost of compensated absence as the additional amount that the Company expects to pay as a result of the unused entitlement that has accumulated at the balance sheet date.

		Gratuity:

		In accordance with applicable Indian laws, the Company provides for gratuity, a defined benefit retirement plan (Gratuity Plan) covering certain categories of employees. The Gratuity Plan provides a lump sum payment to vested employees, at retirement or termination of employment, an amount based on the respective employee’s last drawn salary and the years of employment with the Company. Liability with regard to gratuity plan is accrued based on actuarial valuations at the balance sheet date, carried out by an independent actuary. Actuarial gain or loss is recognised immediately in the statement of profit and loss as income or expense. The Company has an employees’ gratuity fund managed by the Life Insurance Corporation of India (LIC).

		Superannuation:

		Apart from being covered under the Gratuity Plan described above, the employees of the Company also participate in a defined contribution plan maintained by the Company. This plan is administered by the LIC & ICICI Prudential Insurance Company Limited. The Company makes annual contributions based on a specified percentage of each covered employee’s salary.

xvi.		Employee stock options

		The Company determines the compensation cost based on the intrinsic value method. The compensation cost is amortised on a straight line basis over the vesting period.

xvii.		Research and development

		Revenue expenditure on research and development is charged to profit and loss account and capital expenditure is shown as addition to fixed assets.

xviii.		Income tax & Fringe benefit tax

		Income tax:

		The current charge for income taxes is calculated in accordance with the relevant tax regulations.

		The income tax provision for the interim period is made based on the best estimate of the annual average tax rate expected to be applicable for the full fiscal year.

		Deferred tax assets and liabilities are recognised for the future tax consequences attributable to timing differences that result between the profit offered for income taxes and the profit as per the financial statements by each entity in the Company.

		Deferred taxes are recognised in respect of timing differences which originate during the tax holiday period but reverse after the tax holiday period. For this purpose, reversal of timing difference is determined using FIFO method.

		Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. The effect on deferred tax assets and liabilities of a change in tax rates is recognised in the period that includes the enactment/ substantive enactment date.

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

		Deferred tax assets on timing differences are recognised only if there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. However, deferred tax assets on the timing differences when unabsorbed depreciation and losses carried forward exist, are recognised only to the extent that there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

		Deferred tax assets are reassessed for the appropriateness of their respective carrying amounts at each balance sheet date.

		Fringe benefit tax:

		The Fringe Benefit Tax (FBT) is accounted for in accordance with the guidance note on accounting for fringe benefits tax issued by the ICAI. The provision for FBT is reported under income taxes.

xix.		Earnings per share

		Basic:

		The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period.

		Diluted:

		The number of shares used in computing diluted earnings per share comprises the weighted average shares considered for deriving basic earnings per share, and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares.

		Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. The number of shares and potentially dilutive equity shares are adjusted for any stock splits and bonus shares issued.

xx.		Cash flow statement

		Cash flows are reported using the indirect method, whereby net profits before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the Company are segregated.

		NOTES TO ACCOUNTS

The following are the details for 1,462,008,502 (2007: 1,459,113,115, 2008: 1,461,453,320) equity shares as of June 30, 2008.


No. of shares		Description

	1,398,430,659	Equity shares / American Depository Receipts (ADRs) (2007 & 2008: 1,398,430,659) have been allotted as fully paid bonus shares / ADRs by capitalization of Securities premium account and Capital redemption reserve

	1,325,525	Equity shares (2007 & 2008: 1,325,525) have been allotted as fully paid -up, pursuant to a scheme of amalgamation, without payment being received in cash

	3,162,500	Equity shares (2007 & 2008: 3,162,500) representing American Depository Receipts issued during 2000-2001 pursuant to American Depository offering by the Company

	58,164,818	Equity shares (2007: 55,269,431 & 2008: 57,609,636) issued pursuant to Employee Stock Option Plan

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

Note on Reserves and Surplus

Restricted stock units reserve includes Deferred Employee Compensation, which represents future charge to profit and loss account and employee stock options outstanding to be treated as securities premium at the time of allotment of shares.

ii)

Additions to General Reserve include:


	*(Rs. in Million)*
							For the
Particulars	For the quarter ended						year ended
	June			June 30,				March 31,
	30, 2008			2007				2008

a) Transfer from profit and loss account		9,078			7,256				22,575
b) Adjustment on account of amalgamation		—			(1,376	)			(3,601	)
c) Transition adjustment on adoption of AS 30		(91	)		—				—

		8,987			5,880				18,974

4.		Adoption of AS 30

		In December 2007, the ICAI issued Accounting Standard (AS) 30, Financial Instruments: Recognition and Measurement. Although AS 30 becomes recommendatory in respect of accounting periods commencing on or after April 1, 2009 and mandatory in respect of accounting periods commencing on or after April 1, 2011, in March 2008 the ICAI announced that the earlier adoption of AS 30 is encouraged.

		On April 1, 2008, the Company early adopted AS 30 and the limited revisions to other accounting standards which come into effect upon adoption of AS 30.

		AS 30 states that particular sections of other accounting standards; Accounting Standard (AS) 4, Contingencies and Events Occurring after Balance sheet Date, to the extent it deals with contingencies, Accounting Standard (AS) 11 (revised 2003), The Effects of Changes in Foreign Exchange Rates, to the extent it deals with the ‘forward exchange contracts’ and Accounting Standard (AS) 13, Accounting for Investments, except to the extent it relates to accounting for investment properties, would stand withdrawn from the date AS 30 becomes mandatory.

		Accordingly, the Company continues to comply with the guidance under these accounting standards; AS 4 — relating to Contingencies, AS 11 — relating to Forward Contracts and AS 13 until AS 30 becomes mandatory.

		Until March 31, 2008 the Company applied the recognition and measurement principles as set out in AS 30 in accounting for derivatives and hedge accounting. Changes in the fair values of derivative financial instruments designated as cash flow hedges were recognized directly in shareholders’ funds and reclassified into the profit and loss account upon the occurrence of the hedged transaction. The Company also designated derivative financial instruments as hedges of net investments in non-integral foreign operation. The portion of the changes in fair value of derivative financial instruments that was determined to be an effective hedge is recognised in the shareholders’ funds and was recognised in the profit and loss account upon sale or disposal of related non-integral foreign operation. Changes in fair value relating to the ineffective portion of the hedges and derivatives not designated as hedges were recognized in the profit and loss account as they arose.

		As the Company was applying the transitional principles of AS 30 in respect of its accounting for derivative financial instruments in relation to derivative and hedge accounting, the early adoption of AS 30 did not have a material impact on the Company.

		As permitted by AS 30 and the consequent limited revisions to other accounting standards; during the quarter ended June 30, 2008 the Company designated a yen-denominated foreign currency borrowing along with a floating-for-floating Cross-Currency Swap (CCS), as a hedging instrument to hedge its net investment in a non-integral foreign operation. Accordingly the translation loss on the foreign currency borrowings and portion of the

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

		changes in fair value of CCS which are determined to be effective hedge of net investment in non-integral foreign operations aggregating to Rs. 660 million is recognized in shareholders’ funds and would be transferred to profit and loss account upon sale or disposal or non-integral foreign operations.

		If the Company had continued to apply the provisions of AS 11 to the foreign currency borrowing and not considered it as hedge of net investment as permitted under AS 30 and the consequent limited revision to other accounting standards, the translation loss on the foreign currency borrowing would have been recorded in the profit and loss account. Consequently, the foreign currency borrowing combined with CCS would not have qualified for hedge accounting and therefore changes in fair value of CCS would also have been recorded in profit and loss account. As a result profit after tax for the quarter ended June 30, 2008 would have been lower by Rs. 660 million.

5.		Derivatives

		As of June 30, 2008 the Company had derivative financial instruments to sell USD 2,639 Million, GBP 75 Million, EUR 18 Million and JPY 7,682 Million relating to highly probable forecasted transactions. As of March 31, 2008 the Company had derivative financial instruments to sell USD 2,497 Million, GBP 84 Million, EUR 24 Million and JPY 7,682 Million relating to highly probable forecasted transactions. As of June 30, 2008 the Company has recognised mark-to-market losses of Rs. 9,344 Million (2008: Rs. 1,097 Million) relating to derivative financial instruments that are designated as effective cash flow hedges in the shareholders’ funds.

		In addition, as of June 30, 2008 the Company had derivative financial instruments to sell USD 306 Million and EUR 65 Million designated as hedge of net investment in non-integral foreign operations. Further, the Company designated a yen-denominated foreign currency borrowing amounting to Yen 28 Billion along with a related floating-for-floating Cross-Currency Swap (CCS), as hedging instrument to hedge net investment in non-integral foreign operation. The Company has recognized mark-to-market losses of Rs 3,273 Million (2008: Rs.495 Million) relating to the above financial instruments that are designated as hedges of net investment in non-integral foreign operations in translation reserve in the shareholder’s funds.

		As of June 30, 2008 the Company had undesignated derivative financial instruments to sell USD 266 Million, GBP 55 Million and EUR 33 Million. As of March 31, 2008 the Company had undesignated derivative financial instruments to sell USD 414 Million, GBP 58 Million and EUR 39 Million. As of June 30, 2008 the Company has recognized mark-to-market gain/ (losses) on such derivative financial instruments through the profit and loss account.

6.		The Company has a 49% equity interest in Wipro GE Healthcare Private Limited (Wipro GE), an entity in which General Electric, USA holds the majority equity interest. The shareholders agreement provides specific rights to the two shareholders. Management believes that these specific rights do not confer joint control as defined in Accounting Standard 27 “Financial Reporting of Interests in Joint Ventures”. Consequently, Wipro GE is not considered as a joint venture and consolidation of financial statements is carried out as per the equity method in terms of Accounting Standard 23 “Accounting for Investments in Associates in Consolidated Financial statements”.

7.		In March 2008, pursuant to the scheme of amalgamation approved by the Honorable High Court of Karnataka and High Court of Judicature at Bombay, the Company has merged mPower Software Services India Private Limited (‘mPower’), mPact Technology Service Private Limited (‘mPact’) and cMango India Private Limited (‘cMango’) with the Company retrospectively from 1 April 2007, the Appointed Date. mPower, mPact and cMango were fully held by Wipro Inc, which in turn is a wholly owned subsidiary of the Company. Pursuant to the scheme of amalgamation, the Company will issue 968,803 fully-paid equity shares with a market value as on April 1, 2007 of Rs. 540 Million as consideration to a controlled trust to be held for the benefit of Wipro Inc.

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

8.		Employee stock option

i)		Employees covered under Stock Option Plans and Resticted Stock Unit (RSU) 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 over a period of 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.

ii)		The stock compensation cost is computed under the intrinsic value method and amortised on a straight line basis over the total vesting period of five years. The Company has granted 8,311,634 Options under RSU Options Plan and 120,000 options under Stock Options Plan during the quarter ended June 30, 2008.

		For the quarter ended June 30, 2008 the Company has recorded stock compensation expense of Rs. 433 Million (2007: Rs.286 Million, 2008: Rs.1,166 Million).

		The Company has been advised by external counsel that the straight line amortization over the total vesting period complies with the SEBI Employee Stock Option Scheme Guidelines 1999, as amended. However, an alternative interpretation of the SEBI guidelines could result in amortization of the cost on an accelerated basis. If the Company were to amortize the cost on an accelerated basis, profit after taxation for the quarter ended June 30, 2008 would have been lower by Rs.153 Million (2007: Rs.76 Million, 2008: Rs.231 Million) .This would effectively increase/ decrease, as the case may be, the profit after taxation in later periods by similar amounts.

iii)		The Finance Act, 2007 has introduced Fringe Benefit Tax (FBT) on employee stock options. The difference between the fair value of the underlying share on the date of vesting and the exercise price paid by the employee is subject to FBT. The Company recovers such tax from the employee. During the quarter ended June 30, 2008 the Company has recognised FBT liability and related recovery of Rs 46 Million arising from the exercise of stock options. The Company’s obligation to pay FBT arises only upon the exercise of stock options.

9.		Income Tax

		Provision for tax has been allocated as follows:


						(Rs in Million)

	Quarter ended					Year Ended
	June 30,					March 31,
Particulars	2008			2007		2008

Net current tax		1,456			885		4,194
Deferred tax		(29	)		55		62
Fringe benefit tax		99			65		294

Total income taxes		1,526			1,005		4,550

10.

The Company had received tax demands from the Indian income tax authorities for the financial years ended March 31, 2001, 2002, 2003 and 2004 aggregating to Rs. 11,127 Million (including interest of Rs. 1,503 Million). The tax demand was primarily on account of denial of deduction claimed by the Company under Section 10A of the Income Tax Act 1961, in respect of profits earned by its undertakings in Software Technology Park at Bangalore. The appeals filed by the Company for the above years to the first appellate authority were allowed in favour of the Company, thus deleting substantial portion of the demand raised by the Income tax authorities. On further appeal filed by the income tax authorities, in June 2008 the second appellate authority upheld the claim of the company for years ended March 31, 2001 and 2002. The Income tax authorities have filed similar appeals for years ended March 31, 2003 and 2004 which are pending before the second appellate authority.

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

		Considering the facts and nature of disallowance and the order of the appellate authorities upholding the claims of the Company for earlier years, the Company believes that the final outcome of the above disputes should be in favour of the Company and there should not be any material impact on the financial statements.

11.		The list of subsidiaries is given below :


			Country of
Direct Subsidiaries	Step Subsidiaries		Incorporation
Wipro Inc.			USA
	Enthink Inc.		USA
	Infocrossing Inc		USA
		Infocrossing EAS, Inc.,	USA
		Infocrossing Services, Inc.	USA
		Infocrossing West, Inc. ^(A)	USA
		Infocrossing Healthcare Services, Inc.	USA
		Infocrossing, LLC, ^(A)	USA
		Infocrossing iConnection, Inc.,	USA
cMango Pte Limited			Singapore
Wipro Japan KK			Japan
Wipro Shanghai Limited			China
Wipro Trademarks Holding Limited			India
	Cygnus Negri Investments Private Limited		India
Wipro Travel Services Limited			India
Wipro Consumer Care Limited			India
Wipro Holdings (Mauritius) Limited			Mauritius
	Wipro Holdings UK Limited		UK
		Wipro Technologies UK Limited	UK
		BVPENTEBeteiligungsve rwaltung GmbH	Austria
		New Logic Technologies GmbH	Austria
		NewLogic Technologies SARL	France
		3D Networks FZ-LLC	Dubai
		3D Networks (UK) Limited	UK
Wipro Cyprus Private Limited			Cyprus
	Wipro Technologies S.A DE C.V		Mexico
	Wipro BPO Philippines LTD. Inc		Philippines
	Wipro Holdings Hungary Korlátolt Felel•sség• Társaság		Hungary
	Wipro Information Technology Egypt SAE		Egypt
	Wipro Arabia Limited ^(a)		Dubai
	RetailBox BV		Netherlands
		Enabler Informatica SA	Portugal

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES


			Country of
Direct Subsidiaries	Step Subsidiaries		Incorporation
		Enabler France SAS	France
		Enabler UK Ltd	UK
		Enabler Brasil Ltd	Brazil
		Enabler & Retail Consult GmbH	Germany
		Wipro Technologies Limited, Russia	Russia
	Wipro Technologies OY (formerly Saraware OY)		Finland
	Wipro Infrastructure Engineering AB (formerly
	Hydrauto Group AB)		Sweden
		Wipro Infrastructure Engineering OY (formerly Hydrauto OY Ab Pernion)	Finland
		Hydrauto Celka San ve Tic	Turkey
	Wipro Technologies SRL		Romania
	Wipro Singapore Pte Limited		Singapore
		Unza Holdings Limited ^(A)	Singapore
		Wipro Technocentre (Singapore) Pte Limited	Singapore
Wipro Australia Pty Limited			Australia
3D Networks Pte Limited			Singapore
Planet PSG Pte Limited			Singapore
	Planet PSG SDN BHD		Malaysia
Spectramind Inc			USA
Wipro Chandrika Limited ^(b)			India
WMNETSERV Limited			Cyprus
	WMNETSERV (UK) Ltd.		UK
	WMNETSERV INC.		USA


All the above subsidiaries are 100% held by the Company except the following:

a)		66.67% held in Wipro Arabia Limited

b)		90% held in Wipro Chandrika Limited

^(A)		Step Subsidiary details of Infocrossing West, Inc., Infocrossing, LLC, and Unza Holdings Limited are as follows :


		Country of
Step subsidiaries	Step subsidiaries	Incorporation
Infocrossing West, Inc.		USA
	Infocrossing Services West, Inc.	USA
Infocrossing, LLC,		USA
	Infocrossing Services Southeast, Inc.	USA
Unza Company Pte Ltd		Singapore
Unza Indochina Pte Ltd		Singapore
	Unza Vietnam Co., Ltd	Vietnam
Unza Cathay Ltd		Hong Kong
Unza China Ltd		Hong Kong
	Dongguan Unza Consumer Products Ltd.	China

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

12.		The segment information for the quarter ended June 30, 2008, June 30, 2007 and year ended March 31, 2008 is as follows:

		Until March 31, 2008 the Company was reporting Global IT Services & Products (comprising of IT Services & Products and BPO Services segments), India & AsiaPac IT Services & Products, Consumer Care & Lighting and Others.

		In April 2008 the Company re-organized its IT businesses by combining the Global IT Services & Products and the India & AsiaPac IT Services & Products businesses and appointed joint CEOs for the combined IT business. Consequent to the re-organization of the Company, the Company changed its system of internal financial reporting to the board of directors and the chief executive officer wherein the financial results are reported as IT Services and IT Products. Accordingly, the Company identified IT services and IT products as reportable segments. There is no change in the reportable segments for other businesses.

		Segment information in respect of earlier period has been revised to conform to the presentation as per current reportable segments.

CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF WIPRO LIMITED AND SUBSIDIARIES


										*Rs. in Million*
										Year ended
	Quarter Ended June 30									March 31,
Particulars	2008			2007			Growth %			2008
Revenues
IT Services		44,045			31,597			39	%		146,626
IT Products		7,463			5,175			44	%		26,400
Consumer Care and Lighting		5,127			2,343			119	%		15,207
Others		3,286			2,738			20	%		11,691
Eliminations		(254	)		(63	)					(349	)

TOTAL		59,667			41,789			43	%		199,575

Profit before Interest and Tax — PBIT
IT Services		9,186			6,695			37	%		31,290
IT Products		249			234			7	%		1,227
Consumer Care and Lighting		609			305			100	%		1,900
Others		180			59						770

TOTAL		10,224			7,293			40	%		35,187

Interest (Net) and Other Income		285			868						1,883

Profit Before Tax		10,509			8,161			29	%		37,070

Income Tax expense including Fringe Benefit Tax		(1,526	)		(1,005	)					(4,550	)

Profit before Share in earnings of associates and minority interest		8,983			7,156			26	%		32,520
Share in earnings of associates		107			97						333
Minority interest		(12	)		3						(24	)

PROFIT AFTER TAX		9,078			7,256			25	%		32,829

Operating Margin
IT Services		21	%		21	%					21	%
IT Products		3	%		5	%					5	%
Consumer Care and Lighting		12	%		13	%					12	%

TOTAL		17	%		17	%					18	%

CAPITAL EMPLOYED
IT Services and Products		90,421			54,184						93,969
Consumer Care and Lighting		17,746			2,825						17,292
Others		61,018			46,666						50,659

TOTAL		169,186			103,675						161,920

CAPITAL EMPLOYED COMPOSITION
IT Services and Products		53	%		52	%					58	%
Consumer Care and Lighting		10	%		3	%					11	%
Others		36	%		45	%					31	%

TOTAL		100	%		100	%					100	%

RETURN ON AVERAGE CAPITAL EMPLOYED
IT Services and Products		41	%		51	%					44	%
Consumer Care and Lighting		14	%		42	%					19	%

TOTAL		25	%		29	%					27	%

CONDENSED CONSOLIDATED FINANCIAL STATEMENT OF WIPRO LIMITED AND SUBSIDIARIES

Notes to Segment Report

	a)		The segment report of Wipro Limited and its consolidated subsidiaries and associates has been prepared in accordance with the Accounting Standard 17 “Segment Reporting” issued by The Institute of Chartered Accountants of India.

	b)		Segment revenue includes certain exchange differences which are reported in other income, in the financial statements. PBIT for the quarter ended June 30, 2008 includes certain operating other income of Rs. 55 Million (2007: Rs.27 Million, 2008: Rs. 419 Million) in IT Services, Rs. 12 Million (2007: Rs.28 Million, 2008: Rs. 53 Million) in IT Products, Rs. 18 Million in Consumer Care and Lighting (2007:Rs. 7 Million, 2008: Rs. 71 Million) and Rs.58 Million in Others (2007: Rs.216 Million, 2008: Rs. 281 Million) which is not included in the segment revenue.

	c)		Segment revenue resulting from transactions with other business segments is accounted on the basis of transfer price agreed between the segments. Such transfer prices are either determined to yield a desired margin or agreed on a negotiated basis.

	d)		PBIT for the quarter ended June 30, 2008 is after considering restricted stock unit amortization of Rs 433 Million (2007: Rs 286 Million and 2008: 1,166 Million).

	e)		Capital employed of segments does not include current liabilities. The net current liability of segments is as follows :–


	As of June 30,				As of March 31,
Particulars	2008		2007		2008

IT Services and Products		44,726		23,989		30,456
Consumer Care and Lighting		3,983		1,684		3,382
Others		22,645		7,446		20,582

		71,354		33,119		54,420

	f)		Capital employed of ‘Others’ includes cash and cash equivalents including liquid mutual funds of Rs. 56,165 Million (2007: Rs.37,074 Million, 2008: Rs. 42,933 Million).

	g)		The Company has four geographic segments: India, USA, Europe and Rest of the World. Significant portion of the segment assets are in India. Revenue from geographic segments based on domicile of the customers is outlined below:


	Quarter ended June 30,								As of March 31,
Particulars	2008		%		2007		%		2008		%

India		12,558		21		10,185		24		48,847		24
United States of America		26,189		44		19,153		46		87,439		44
Europe		14,473		24		10,545		25		48,259		24
Rest of the world		6,448		11		1,906		5		15,030		8

		59,668				41,789				199,575

For the purpose of reporting, business segments are considered as primary segments and geographic segments are considered as secondary segments.

13.

Corresponding figures for previous periods presented have been regrouped, where necessary, to confirm to the current period classification.


			Country of
Step subsidiaries	Step subsidiaries		Incorporation
PT Unza Vitalis			Indonesia
Unza Thailand Limited			Thailand
Unza Overseas Ltd			British virgin islands
Unza Africa Limited			Nigeria
Unza Middle East Ltd			British virgin islands
Unza International Limited			British virgin islands
Positive Equity Sdn Bhd			Malaysia
Unza Nusantara Sdn Bhd			Malaysia
	Unza Holdings Sdn Bhd		Malaysia
	Unza Malaysia Sdn Bhd		Malaysia
		UAA Sdn Bhd	Malaysia
	Manufacturing Services Sdn Bhd		Malaysia
		Shubido Pacific Sdn Bhd	Malaysia
	Gervas Corporation Sdn Bhd		Malaysia
		Gervas (B) Sdn Bhd	Malaysia
	Formapac Sdn Bhd		Malaysia