EX-99.4 5 f52247exv99w4.htm EX-99.4
Exhibit 99.4
Wipro Limited — Results for the Quarter & Year ended March 31, 2009
(Rs. in Million)
WIPRO LIMITED, CONSOLIDATED
AUDITED SEGMENT REPORT FOR THE QUARTER & YEAR ENDED MARCH 31, 2009

|  | Quarter ended March 31, |  | Year ended March 31,
Particulars |  | 2009 |  | 2008 |  | Growth % |  | 2009 |  | 2008 |  | Growth %
Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
IT Services |  |  | 49,323 |  |  |  | 41,206 |  |  |  | 20 | % |  |  | 191,661 |  |  |  | 146,626 |  |  |  | 31 | %
IT Products |  |  | 8,698 |  |  |  | 7,838 |  |  |  | 11 | % |  |  | 34,552 |  |  |  | 26,400 |  |  |  | 31 | %
Consumer Care and Lighting |  |  | 5,164 |  |  |  | 4,808 |  |  |  | 7 | % |  |  | 20,830 |  |  |  | 15,207 |  |  |  | 37 | %
Others |  |  | 1,469 |  |  |  | 3,272 |  |  |  |  |  |  |  | 9,144 |  |  |  | 11,691 |  |  |  |  |
Eliminations |  |  | (136 | ) |  |  | (122 | ) |  |  |  |  |  |  | (745 | ) |  |  | (349 | ) |  |  |  |
TOTAL |  |  | 64,518 |  |  |  | 57,002 |  |  |  | 13 | % |  |  | 255,442 |  |  |  | 199,575 |  |  |  | 28 | %
Profit before Interest and Tax — PBIT |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
IT Services |  |  | 10,729 |  |  |  | 8,641 |  |  |  | 24 | % |  |  | 40,323 |  |  |  | 31,290 |  |  |  | 29 | %
IT Products |  |  | 372 |  |  |  | 375 |  |  |  | -1 | % |  |  | 1,481 |  |  |  | 1,227 |  |  |  | 21 | %
Consumer Care and Lighting |  |  | 683 |  |  |  | 630 |  |  |  | 8 | % |  |  | 2,548 |  |  |  | 1,900 |  |  |  | 34 | %
Others |  |  | (310 | ) |  |  | 285 |  |  |  |  |  |  |  | (348 | ) |  |  | 770 |  |  |  |  |
TOTAL |  |  | 11,474 |  |  |  | 9,931 |  |  |  | 16 | % |  |  | 44,004 |  |  |  | 35,187 |  |  |  | 25 | %
Interest and Other Income, Net |  |  | 308 |  |  |  | 182 |  |  |  |  |  |  |  | 1,192 |  |  |  | 1,883 |  |  |  |  |
Profit Before Tax |  |  | 11,782 |  |  |  | 10,113 |  |  |  | 17 | % |  |  | 45,196 |  |  |  | 37,070 |  |  |  | 22 | %
Income Tax expense including Fringe Benefit Tax |  |  | (1,667 | ) |  |  | (1,399 | ) |  |  |  |  |  |  | (6,460 | ) |  |  | (4,550 | ) |  |  |  |
Profit before Share in earnings of associates and minority interest |  |  | 10,115 |  |  |  | 8,714 |  |  |  | 16 | % |  |  | 38,736 |  |  |  | 32,520 |  |  |  | 19 | %
Share in earnings of associates |  |  | 35 |  |  |  | 100 |  |  |  |  |  |  |  | 362 |  |  |  | 333 |  |  |  |  |
Minority interest |  |  | (50 | ) |  |  | (16 | ) |  |  |  |  |  |  | (99 | ) |  |  | (24 | ) |  |  |  |
PROFIT AFTER TAX |  |  | 10,100 |  |  |  | 8,798 |  |  |  | 15 | % |  |  | 38,999 |  |  |  | 32,829 |  |  |  | 19 | %
EARNINGS PER SHARE — EPS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity shares of par value Rs. 2/- each |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic (in Rs.) |  |  | 6.94 |  |  |  | 6.06 |  |  |  |  |  |  |  | 26.81 |  |  |  | 22.62 |  |  |  |  |
Diluted (in Rs.) |  |  | 6.93 |  |  |  | 6.03 |  |  |  |  |  |  |  | 26.72 |  |  |  | 22.51 |  |  |  |  |
Operating Margin |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
IT Services |  |  | 21.8 | % |  |  | 21.0 | % |  |  |  |  |  |  | 21.0 | % |  |  | 21.3 | % |  |  |  |
IT Products |  |  | 4.3 | % |  |  | 4.8 | % |  |  |  |  |  |  | 4.3 | % |  |  | 4.6 | % |  |  |  |
Consumer Care and Lighting |  |  | 13.2 | % |  |  | 13.1 | % |  |  |  |  |  |  | 12.2 | % |  |  | 12.5 | % |  |  |  |
TOTAL |  |  | 17.8 | % |  |  | 17.4 | % |  |  |  |  |  |  | 17.2 | % |  |  | 17.6 | % |  |  |  |
CAPITAL EMPLOYED |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
IT Services and Products |  |  | 119,997 |  |  |  | 93,969 |  |  |  |  |  |  |  | 119,997 |  |  |  | 93,969 |  |  |  |  |
Consumer Care and Lighting |  |  | 18,689 |  |  |  | 17,292 |  |  |  |  |  |  |  | 18,689 |  |  |  | 17,292 |  |  |  |  |
Others |  |  | 54,742 |  |  |  | 50,659 |  |  |  |  |  |  |  | 54,742 |  |  |  | 50,659 |  |  |  |  |
TOTAL |  |  | 193,428 |  |  |  | 161,920 |  |  |  |  |  |  |  | 193,428 |  |  |  | 161,920 |  |  |  |  |
CAPITAL EMPLOYED COMPOSITION |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
IT Services and Products |  |  | 62 | % |  |  | 58 | % |  |  |  |  |  |  | 62 | % |  |  | 58 | % |  |  |  |
Consumer Care and Lighting |  |  | 9 | % |  |  | 11 | % |  |  |  |  |  |  | 9 | % |  |  | 11 | % |  |  |  |
Others |  |  | 28 | % |  |  | 31 | % |  |  |  |  |  |  | 28 | % |  |  | 31 | % |  |  |  |
TOTAL |  |  | 100 | % |  |  | 100 | % |  |  |  |  |  |  | 100 | % |  |  | 100 | % |  |  |  |
RETURN ON AVERAGE CAPITAL EMPLOYED |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
IT Services and Products |  |  | 40 | % |  |  | 40 | % |  |  |  |  |  |  | 39 | % |  |  | 44 | % |  |  |  |
Consumer Care and Lighting |  |  | 15 | % |  |  | 15 | % |  |  |  |  |  |  | 14 | % |  |  | 19 | % |  |  |  |
TOTAL |  |  | 24 | % |  |  | 26 | % |  |  |  |  |  |  | 25 | % |  |  | 27 | % |  |  |  |

Notes to Segment Report:

a) |  | The segment report of Wipro Limited and its consolidated subsidiaries and associates has been prepared in accordance with the AS 17 “Segment Reporting” issued pursuant to the Companies (Accounting Standard) Rules, 2006 and by The Institute of Chartered Accountants of India.
b) |  | In certain specific total outsourcing contracts of IT services segment, the company delivers hardware, software and other related deliverables. Revenue relating to these items are reported in the IT products segment.
c) |  | Capital employed of segments is net of current liabilities. The net current liability of segments is as follows:

|  |  |  |  |  | (Rs in Million)
|  | As of March 31,
Particulars |  | 2009 |  | 2008
IT Services and Products |  |  | 59,249 |  |  |  | 30,456 |
Consumer Care and Lighting |  |  | 4,026 |  |  |  | 3,382 |
Others |  |  | 15,935 |  |  |  | 20,582 |
|  |  | 79,210 |  |  |  | 54,420 |

d) |  | 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:

|  |  |  |  |  |  |  |  |  | (Rs in Million)
|  | Year ended March 31,
Particulars |  | 2009 |  | % |  | 2008 |  | %
India |  |  | 54,608 |  |  |  | 21 |  |  |  | 48,847 |  |  |  | 24 |
USA |  |  | 115,105 |  |  |  | 45 |  |  |  | 87,439 |  |  |  | 44 |
Europe |  |  | 57,109 |  |  |  | 22 |  |  |  | 48,259 |  |  |  | 24 |
Rest of the world |  |  | 28,620 |  |  |  | 12 |  |  |  | 15,030 |  |  |  | 8 |
|  |  | 255,442 |  |  |  | 100 |  |  |  | 199,575 |  |  |  | 100 |

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

Notes to Audited Financial Statements:

1. |  | The above audited financial results were approved by the Board of Directors of the Company at its meeting held on April 22, 2009.

2 |  | Status of redressal of Complaints received for the period January 1, 2009 to March 31, 2009

|  |  |  |  |  |  |  |  |  | Complaints |  | Complaints |  |
Sl. |  |  |  | Opening balance |  | received during |  | disposed during |  |
No. |  | Nature of the complaint |  | 01.01.2009 |  | the quarter |  | the quarter |  | Unresolved
| 1 |  |  | Non-Receipt of Securities |  |  | — |  |  |  | 4 |  |  |  | 4 |  |  |  | — |
| 2 |  |  | Non Receipt of Annual Reports |  |  | — |  |  |  | 5 |  |  |  | 5 |  |  |  | — |
| 3 |  |  | Correction / Duplicate / Revalidation of Dividend Warrants |  |  | — |  |  |  | 59 |  |  |  | 59 |  |  |  | — |
| 4 |  |  | SEBI/Stock Exchange Complaints |  |  | — |  |  |  | 2 |  |  |  | 2 |  |  |  | — |
| 5 |  |  | Non Receipt of Dividend Warrants |  |  | 6 |  |  |  | 42 |  |  |  | 48 |  |  |  | — |
| 6 |  |  | Others |  |  | — |  |  |  | 5 |  |  |  | 4 |  |  |  | 1 |
|  |  |  | TOTAL |  |  | 6 |  |  |  | 117 |  |  |  | 116 |  |  |  | 1 |

3. |  | The above financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments, which are measured on a fair value 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 interim consolidated financial statements for the quarter ended March 31, 2009 have been prepared in accordance with the recognition, measurement and disclosure provisions of AS 25, Interim Financial Reporting, issued pursuant to the Companies (Accounting Standards) Rules, 2006 and by the ICAI. These financial statements should be read in conjunction with the consolidated annual financial statement of the Company for the year ended as at March 31, 2009. The accounting policies followed in the preparation of the financial statement are consistent with those followed in the preparation of the consolidated annual financial statement, except the adoption of AS 30, Financial Instruments: Recognition and Measurement. Effective April 1, 2008 the Company adopted AS 30. The adoption of AS 30 along with limited revision to other accounting standards has been described in Note 4 of the notes to accounts.
4. |  | The total revenues represent the aggregate segment revenue and include all a locable other income and exchange differences which are reported in other income in the financial statements.
5. |  | In accordance with AS 21 ‘Consolidated Financial Statements’ and AS 23 ‘Accounting for Investments in Associates in Consolidated Financial Statements’ issued by the Institute of Chartered Accountants of India (ICAI), the condensed consolidated financial statements of Wipro Limited include the financial statements of all subsidiaries of Wipro Limited which are more than 50% owned and controlled and associates where the Company has significant influence.

(Rs. in Million except share data)
WIPRO LIMITED — CONSOLIDATED
AUDITED FINANCIAL STATEMENTS FOR THE QUARTER AND YEAR ENDED MARCH 31, 2009

|  | Quarter ended March 31, |  | Year ended March 31,
|  | 2009 |  | 2008 |  | 2009 |  | 2008
Particulars |  | Audited |  | Audited |  | Audited |  | Audited
1 Net Income from Sales/Services |  |  | 64,821 |  |  |  | 57,323 |  |  |  | 256,171 |  |  |  | 200,397 |
2 Cost of Sales / Services |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
a) (Increase)/Decrease in stock in trade and work in progress |  |  | (125 | ) |  |  | (458 | ) |  |  | (779 | ) |  |  | (592 | )
b) Consumption of raw materials |  |  | 4,384 |  |  |  | 4,786 |  |  |  | 21,924 |  |  |  | 17,090 |
c) Purchase of traded goods |  |  | 6,742 |  |  |  | 6,143 |  |  |  | 24,318 |  |  |  | 19,765 |
d) Other expenditure |  |  | 32,255 |  |  |  | 27,935 |  |  |  | 127,128 |  |  |  | 99,016 |
3 Gross Profit (1-2) |  |  | 21,565 |  |  |  | 18,917 |  |  |  | 83,580 |  |  |  | 65,118 |
4 General and Administrative expenses |  |  | 3,643 |  |  |  | 3,164 |  |  |  | 14,377 |  |  |  | 10,602 |
5 Selling and Distribution expenses |  |  | 4,431 |  |  |  | 4,110 |  |  |  | 18,188 |  |  |  | 13,971 |
6 Depreciation |  |  | 1,872 |  |  |  | 1,508 |  |  |  | 6,864 |  |  |  | 5,358 |
7 Operating Profit before interest (3) — (4+5+6) |  |  | 11,619 |  |  |  | 10,135 |  |  |  | 44,151 |  |  |  | 35,187 |
8 Interest expense |  |  | 848 |  |  |  | 671 |  |  |  | 3,865 |  |  |  | 1,892 |
9 Exceptional Items |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
10 Operating Profit after interest and Exceptional Items (7-8-9) |  |  | 10,771 |  |  |  | 9,464 |  |  |  | 40,286 |  |  |  | 33,295 |
11 Other investment income |  |  | 1,011 |  |  |  | 651 |  |  |  | 4,910 |  |  |  | 3,775 |
12 Profit from Ordinary Activities before tax (10+11) |  |  | 11,782 |  |  |  | 10,115 |  |  |  | 45,196 |  |  |  | 37,070 |
13 Tax Expense (including Fringe Benefits Tax) |  |  | 1,667 |  |  |  | 1,399 |  |  |  | 6,460 |  |  |  | 4,550 |
14 Net Profit from Ordinary Activities after tax (12-13) |  |  | 10,115 |  |  |  | 8,716 |  |  |  | 38,736 |  |  |  | 32,520 |
15 Minority Interest |  |  | (50 | ) |  |  | (16 | ) |  |  | (99 | ) |  |  | (24 | )
16 Share in Earnings of Associates |  |  | 35 |  |  |  | 100 |  |  |  | 362 |  |  |  | 333 |
17 Extraordinary items (net of tax expense) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
18 Net Profit for the period (14+15+16-17) |  |  | 10,100 |  |  |  | 8,800 |  |  |  | 38,999 |  |  |  | 32,829 |
19 Paid up equity share capital (Face value Rs. 2 per share) |  |  | 2,928 |  |  |  | 2,923 |  |  |  | 2,928 |  |  |  | 2,923 |
20 Reserves excluding Revaluation Reserves (as per balance sheet) of previous accounting year |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 113,991 |
21 EARNINGS PER SHARE (EPS) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Before extraordinary items (not annualised) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic (in Rs.) |  |  | 6.94 |  |  |  | 6.06 |  |  |  | 26.81 |  |  |  | 22.62 |
Diluted (in Rs.) |  |  | 6.93 |  |  |  | 6.03 |  |  |  | 26.72 |  |  |  | 22.51 |
After extraordinary items (not annualised) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic (in Rs.) |  |  | 6.94 |  |  |  | 6.06 |  |  |  | 26.81 |  |  |  | 22.62 |
Diluted (in Rs.) |  |  | 6.93 |  |  |  | 6.03 |  |  |  | 26.72 |  |  |  | 22.51 |
22 Public shareholding* |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Number of shares |  |  | 279,203,632 |  |  |  | 277,096,250 |  |  |  | 279,203,632 |  |  |  | 277,096,250 |
Percentage of holding |  |  | 19.06 | % |  |  | 18.96 | % |  |  | 19.06 | % |  |  | 18.96 | %
23 Promoters and promoter group shareholding |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
a) Pledged/Encumbered |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
- Number of shares |  | Nil |  |  |  | — |  |  | Nil |  |  |  | — |
- Percentage of shares (as a % of the total shareholding of promoter and promoter group) |  | Nil |  |  |  | — |  |  | Nil |  |  |  | — |
- Percentage of shares (as a % of the total share capital of the company) |  | Nil |  |  |  | — |  |  | Nil |  |  |  | — |
b) Non-encumbered |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
- Number of shares |  |  | 1,162,085,063 |  |  |  | 1,161,116,260 |  |  |  | 1,162,085,063 |  |  |  | 1,161,116,260 |
- Percentage of shares (as a % of the total shareholding of promoter and promoter group) |  |  | 100 | % |  |  | 100 | % |  |  | 100 | % |  |  | 100 | %
- Percentage of shares (as a % of the total share capital of the company) |  |  | 79.32 | % |  |  | 79.44 | % |  |  | 79.32 | % |  |  | 79.44 | %
Details of expenditure |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Items exceeding 10% of total expenditure |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Employee Cost |  |  | 27,704 |  |  |  | 23,198 |  |  |  | 107,064 |  |  |  | 82,726 |

* |  | Public shareholding as defined under clause 40A of the listing agreement (excludes shares beneficially held by promoters and holders of American Depository Receipt)

Notes to Audited Financial Statements (continued):

6. |  | As on April 1, 2008 the company adpoted AS 30 and the consequent limited revisions to other accounting standards. As permitted by AS 30, the Company has designated a yen-denominated foreign currency borrowing amounting to JPY 35 billion, along with Cross-Currency Interest Rate Swap (CCIRS), as a hedging instrument to hedge its net investment in a non-integral foreign operation.
|  | Accordingly, the translation gain / (loss) on the foreign currency borrowings and portion of the changes in fair value of CCIRS which are determined to be effective hedge of net investment in non-integral operation aggregating to Rs 551 Million and Rs 3,044 Million for the quarter and year ended March 31, 2009, respectively was recognized in translation reserve / hedging reserve in shareholders’ funds.
|  | In accordance with AS 11, if the Company had continued to recognize translation losses on foreign currency borrowing in the profit and loss account, the foreign currency borrowing would not have been eligible to be combined with CCIRS for hedge accounting. Consequently the CCIRS also would not have qualified for hedge accounting and changes in fair value of CCIRS would have been recognized in the profit and loss account. As a result, profit after tax for the quarter and year ended March 31, 2009 would have been lower by Rs 551 Million and Rs 3,044 Million respectively.
|  | For detailed note on derivative accounting refer to note 19 (4&5) of the Consolidated financial statements of Wipro Limited which are available on our company website www.wipro.com.
7. |  | In January 2009, the Company acquired 100% shareholding in India based Citi Technology Services Limited (subsequently renamed as Wipro Technology Services Limited — “WTS”) for a purchase consideration of US $ 127 Million and has recorded a goodwill of Rs 4,472 Million. WTS is an India based provider of information technology services and solutions to Citi Group worldwide. WTS has a strong competency in Technology Infrastructure Services (TIS), Application Development and Maintenance services (ADM) for cards, capital markets and corporate banking. The acquisition will enhance Wipro’s capabilities to compete for both TIS business and ADM business in the financial service industry.
8. |  | The list of subsidiaries is included in the condensed consolidated financial statements of Wipro Limited and subsidiaries for the quarter ended March 31, 2009, which are available on our company website www.wipro.com.
9. |  | Merger of certain subsidiaries

| (i) |  | In the terms of the scheme of amalgamation filed with and endorsed by the State of Delaware, United States of America, Spectramind Inc. amalgamated with Wipro Inc. with effect from March 31, 2009. The amalgamation has been accounted as ‘amalgamation in the nature of merger’ in accordance with AS 14, Accounting for Amalgamations.

| ii) |  | The Company has merged its following, fully owned subsidiaries into Infocrossing Inc with effect from March 31, 2009:

| a) |  | Infocrossing EAS Inc
| b) |  | Infocrossing Services Inc
| c) |  | Infocrossing West Inc
| d) |  | Infocrossing Healthcare Services Inc
| e) |  | Infocrossing iConnection, Inc
| f) |  | Infocrossing Services West Inc.

| (iii) |  | The Company has merged Infocrossing Services Southeast Inc, a fully owned subsidiary into Infocrossing LLC with effect from March 31, 2009.

10. |  | Pursuant to Clause 41 (VI) (b) (iii) of the Listing Agreement, we inform that we have published consolidated financial results for the quarter ended March 31, 2009. The stand-alone financial results of Wipro Limited for the quarter ended March 31, 2009 and for the period April 1, 2008 to March 31, 2009 have been submitted to the stock exchanges and are available for perusal in our company website at www.wipro.com and in stock exchange’s website of both Mumbai Stock Exchange and National Stock Exchange of India Limited namely www.bseindia.com and www.nseindia.com

|  | By order of the board |  |

Place: Bangalore |  | Azim H Premji |  | WIPRO LIMITED
Date: April 22, 2009 |  | Chairman |  | Regd. Office: Doddakannelli,
|  |  |  | Sarjapur Road, Bangalore — 560 035.
|  |  |  | www.wipro.com