EX-99.4 5 d128333dex994.htm EX-99.4

EX-99.4

Exhibit 99.4

WIPRO LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED INTERIM

FINANCIAL STATEMENTS UNDER IFRS

AS OF AND FOR THE THREE AND NINE MONTHS ENDED DECEMBER 31, 2015

1

WIPRO LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION

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

				As of March 31,				As of December 31,
		Notes		2015				2015				2015
												Convenience translation into US dollar in millions (unaudited) Refer Note 2(iv)
ASSETS
Goodwill		5			68,078				75,361				1,139
Intangible assets		5			7,931				8,274				125
Property, plant and equipment		4			54,206				57,360				867
Derivative assets		13,14			736				237				4
Available for sale investments		7			3,867				4,391				66
Non-current tax assets					11,409				11,551				175
Deferred tax assets					2,945				3,850				58
Other non-current assets		10			14,369				13,718				207
Total non-current assets					163,541				174,742				2,641
Inventories		8			4,849				6,095				92
Trade receivables					91,531				99,959				1,510
Other current assets		10			73,359				97,751				1,477
Unbilled revenues					42,338				45,662				690
Available for sale investments		7			53,908				151,651				2291
Current tax assets					6,490				8,371				126
Derivative assets		13,14			5,077				3.486				53
Cash and cash equivalents		9			158,940				89,973				1,359
Total current assets					436,492				502,948				7,598
TOTAL ASSETS					600,033				677,690				10,239
EQUITY
Share capital					4,937				4,941				75
Share premium					14,031				14,532				220
Retained earnings					372,248				418,176				6,318
Share based payment reserve					1,312				1,950				29
Other components of equity					15,454				16,968				256
Equity attributable to the equity holders of the Company					407,982				456,567				6,898
Non-controlling interest					1,646				2,035				31
Total equity					409,628				458,602				6,929
LIABILITIES
Long - term loans and borrowings		11			12,707				16,427				248
Deferred tax liabilities					3,240				3,379				51
Derivative liabilities		13,14			71				50				1
Non-current tax liabilities					6,695				7,397				112
Other non-current liabilities		12			3,658				7,296				110
Provisions		12			5				15				—
Total non-current liabilities					26,376				34,564				522
Loans, borrowings and bank overdrafts		11			66,206				81,501				1,231
Trade payables and accrued expenses					58,745				61,918				935
Unearned revenues					16,549				19,122				289
Current tax liabilities					8,036				7,209				109
Derivative liabilities		13,14			753				908				14
Other current liabilities		12			12,223				12,622				191
Provisions		12			1,517				1,244				19
Total current liabilities					164,029				184,524				2,788
TOTAL LIABILITIES					190,405				219,088				3,310
TOTAL EQUITY AND LIABILITIES					600,033				677,690				10,239

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

As per our report of even date attached		For and on behalf of the Board of Directors
for B S R & Co. LLP Chartered Accountants Firm’s Registration No: 101248W/W- 100022		T K Kurien Executive Director & Chief Executive Officer		N Vaghul Director
Vijay Mathur Partner Membership No. 046476		Jatin Pravinchandra Dalal Chief Financial Officer		Rishad Premji Chief Strategy Officer & Executive Director		M Sanaulla Khan Company Secretary
Mumbai		Bangalore
January 18, 2016		January 18, 2016

2

WIPRO LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF INCOME

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

				Three months ended December 31,												Nine months ended December 31,
		Notes		2014				2015				2015				2014				2015				2015
												Convenience translation into US dollar in millions (unaudited) Refer Note 2(iv)												Convenience translation into US dollar in millions (unaudited) Refer Note 2(iv)
Gross revenues		17			119,929				128,605				1,943				348,125				376,116				5,682
Cost of revenues		18			(82,867	)			(90,270	)			(1,364	)			(238,675	)			(260,881	)			(3,941	)
Gross profit					37,062				38,335				579				109,450				115,235				1,741
Selling and marketing expenses		18			(7,524	)			(8,362	)			(126	)			(22,709	)			(25,114	)			(379	)
General and administrative expenses		18			(6,426	)			(7,010	)			(106	)			(19,217	)			(20,710	)			(313	)
Foreign exchange gains/(losses), net					922				911				14				3,343				2,774				42
Results from operating activities					24,034				23,874				361				70,867				72,185				1,091
Finance expenses		19			(810	)			(1,423	)			(21	)			(2,687	)			(4,298	)			(65	)
Finance and other income		20			5,035				6227				94				14,383				17,663				267
Profit before tax					28,259				28,678				434				82,563				85,550				1,293
Income tax expense		16			(6,228	)			(6,248	)			(95	)			(18,369	)			(18,679	)			(282	)
Profit for the period					22,031				22,430				339				64,194				66,871				1,011
Attributable to:
Equity holders of the Company					21,928				22,341				338				63,808				66,572				1,006
Non-controlling interest					103				89				1				386				299				6
Profit for the period					22,031				22,430				339				64,194				66,871				1,011
Earnings per equity share: Attributable to equity share holders of the Company
Basic		21			8.92				9.09				0.14				25.97				27.10				0.41
Diluted					8.88				9.07				0.14				25.85				27.05				0.41
Weighted average number of equity shares used in computing earnings per equity share
Basic					2,457,766,859				2,457,022,905				2,457,022,905				2,457,491,867				2,456,551,992				2.456.551,992
Diluted					2,469,323,243				2,462,220,926				2,462,220,926				2,468,262,835				2,461,282,411				2,461,282,411

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

As per our report of even date attached		For and on behalf of the Board of Directors
for B S R & Co. LLP Chartered Accountants Firm’s Registration No: 101248W/W- 100022		T K Kurien Executive Director & Chief Executive Officer		N Vaghul Director
Vijay Mathur Partner Membership No. 046476		Jatin Pravinchandra Dalal Chief Financial Officer		Rishad Premji Chief Strategy Officer & Executive Director		M Sanaulla Khan Company Secretary
Mumbai		Bangalore
January 18, 2016		January 18, 2016

3

WIPRO LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME

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

				Three months ended December 31,												Nine months ended December 31,
		Notes		2014				2015				2015				2014				2015				2015
												Convenience translation into US dollar in millions (unaudited) Refer Note 2(iv)												Convenience translation into US dollar in millions (unaudited) Refer Note 2(iv)
Profit for the period					22,031				22,430				339				64,194				66,871				1,011
Items that will not be reclassified to profit or loss Defined benefit plan actuarial gains/(losses)					(61	)			(25	)			—				(134	)			(749	)			(11	)
					(61	)			(25	)			—				(134	)			(749	)			(11	)
Items that may be reclassified subsequently to profit or loss
Foreign currency translation differences		15			872				147				2				2,475				3,674				56
Net change in fair value of cash flow hedges		13,16			406				716				11				836				(1,631)				(25)
Net change in fair value of available for sale investments		7,16			213				(199)				(3)				524				310				5
					1,491				664				10				3,835				2,353				36
Total other comprehensive income, net of taxes					1,430				639				10				3,701				1,604				25
Total comprehensive income for the period					23,461				23,069				349				67,895				68,475				1,036
Attributable to:
Equity holders of the Company					23,328				22,970				348				67,456				68,086				1,030
Non-controlling interest					133				99				1				439				389				6
					23,461				23,069				349				67,895				68,475				1,036

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

As per our report of even date attached		For and on behalf of the Board of Directors
for B S R & Co. LLP Chartered Accountants Firm’s Registration No: 101248W/W- 100022		T K Kurien Executive Director & Chief Executive Officer		N Vaghul Director
Vijay Mathur Partner Membership No. 046476		Jatin Pravinchandra Dalal Chief Financial Officer		Rishad Premji Chief Strategy Officer & Executive Director		M Sanaulla Khan Company Secretary
Mumbai		Bangalore
January 18, 2016		January 18, 2016

4

WIPRO LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY

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

																						Other components of equity																Equity attributable to
																		Share				Foreign												Shares held
																		based				currency				Cash flow								by				the equity				Non-
						Share				Share				Retained				payment				translation				hedging				Other				controlled				holders of the				controlling
Particulars		No. of Shares *				Capital				premium				earnings				reserve				reserve				reserve				reserves				trust				company				Interest				Total equity
As at April 1, 2014			2,466,317,273				4,932				12,664				314,952				1,021				10,060				499				(87	)			(542	)			343,499				1,387				344,886
Total comprehensive income for the period
Profit for the period			—				—				—				63,808				—				—				—				—				—				63,808				386				64,194
Other comprehensive income			—				—				—				—				—				2,475				836				337				—				3,648				53				3,701
Total comprehensive income for the period			—				—				—				63,808				—				2,475				836				337				—				67,456				439				67,895
Transaction with owners of the company, recognized directly in equity
Contributions by and distributions to owners of the Company
Issue of equity shares on exercise of options			2,378,448				5				781								(781	)			—				—				—				—				5				—				5
Dividends			—				—				—				(14,350	)			—				—				—				—				—				(14,350	)			(322	)			(14,672	)
Compensation cost related to employee share based payment transactions			—				—				—				(11	)			946				—				—				—				—				935				—				935
Sale of treasury shares #			—				—				458				—				—				—				—				—				542				1,000				—				1,000
			2,378,448				5				1,239				(14,361	)			165				—				—				—				542				(12,410	)			(322	)			(12,732	)
As at December 31, 2014			2,468,695,721				4,937				13,903				364,399				1,186				12,535				1,335				250				—				398,545				1,504				400,049
Convenience translation into US $ in million (Unaudited) Refer note 2(iv)							78				221				5,780				19				199				21				4				—				6,322				24				6,346

# Includes gain on sale of treasury shares

5

WIPRO LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY

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

		No. of Shares*				Share capital				Share premium				Retained earnings				Share based payment reserve				Other components of equity												Shares held by controlled trust				Equity attributable to the equity holders of the Company				Non-controlling interest				Total equity
Particulars																						Foreign currency translation reserves				Cash flow hedging reserve				Other reserve
As at April 1,2015			2,469,043,038				4,937				14,031				372,248				1,312				11,249				3,550				655				—				407,982				1,646				409,628
Total comprehensive income for the period
Profit for the period			—				—				—				66,572				—				—				—				—				—				66,572				299				66,871
Other comprehensive income			—				—				—				—				—				3,584				(1,631	)			(439	)			—				1,514				90				1,604
Total comprehensive income for the period			—				—				—				66,572				—				3,584				(1,631	)			(439	)			—				68,086				389				68,475
Transaction with owners of the company, recognized directly in equity
Contributions by and distributions to owners of the Company
Issue of equity shares on exercise of options			1,359,190				4				501				—				(501	)			—				—				—				—				4				—				4
Dividends			—				—				—				(20,701	)			—				—				—				—				—				(20,701	)			—				(20,701	)
Compensation cost related to employee share based payment transactions			—				—				—				57				1,139				—				—				—				—				1,196				—				1,196
			1,359,190				4				501				(20,644	)			638				—				—				—				—				(19,501	)			—				(19,501	)
As at December 31, 2015			2,470,402,228				4,941				14,532				418,176				1,950				14,833				1,919				216				—				456,567				2,035				458,602
Convenience translation into US $ in million (Unaudited) Refer note 2(iv)							75				220				6,318				29				224				29				3				—				6,898				31				6,929

* Includes 16,640,212 and 14,829,824 treasury shares as of December 31, 2014 and 2015, respectively.

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

As per our report of even date attached		For and on behalf of the Board of Directors
for B S R & Co. LLP Chartered Accountants Firm’s Registration No: 101248W/W- 100022		T K Kurien Executive Director & Chief Executive Officer		N Vaghul Director
Vijay Mathur Partner Membership No. 046476		Jatin Pravinchandra Dalal Chief Financial Officer		Rishad Premji Chief Strategy Officer & Executive Director		M Sanaulla Khan Company Secretary
Mumbai		Bangalore
January 18, 2016		January 18, 2016

6

WIPRO LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS

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

		Nine months ended December 31,
		2014				2015				2015
										Convenience Translation into USS in millions (Unaudited) Refer note 2(iv)
Cash flows from operating activities:
Profit for the period			64,194				66,871				1,011
Adjustments:
Loss/ (gain) on sale of property, plant and equipment and intangible assets, net			13				(10	)			—
Depreciation and amortization			9,556				10,661				161
Exchange loss, net			3,919				3,130				47
Gain on sale of investments, net			(3,212	)			(2,152	)			(33	)
Share based compensation expense			887				1,149				17
Income tax expense			18,369				18,679				282
Dividend and interest (income)/expenses, net			(10,646	)			(14,510	)			(219	)
Changes in operating assets and liabilities; net of effects from acquisitions
Trade receivables			(8,155	)			(8,036	)			(121	)
Unbilled revenue			(2,904	)			(3,161	)			(48	)
Inventories			(2,068	)			(1,246	)			(19	)
Other assets			(599	)			2,086				32
Trade payables, accrued expenses and other liabilities and provision			(2,039	)			3,589				54
Unearned revenue			3,071				2,573				39
Cash generated from operating activities before taxes			70,386				79,623				1,203
Income taxes paid net			(17,650	)			(20,027	)			(303	)
Net cash generated from operating activities			52,736				59,596				900
Cash flows from investing activities:
Purchase of property, plant and equipment			(7,265	)			(8,677	)			(131	)
Proceeds from sale of property, plant and equipment			543				501				8
Purchase of available for sale investments			(434,125	)			(674,351	)			(10,188	)
Proceeds from sale of available for sale investments			415,450				580,382				8,768
Impact of investment hedging activities, net			—				395				6.00
Investment in inter-corporate deposits			(27,500	)			(52,618	)			(795	)
Refund of inter-corporate deposits			13,500				26,500				400
Payment for deferred consideration in respect of business acquisition			(243	)			—				—
Pavment for business acquisitions, net of cash acquired			(11,349	)			(4,032	)			(61	)
Interest received			8,406				12,581				190
Dividend received			185				65				1
Net cash used in investing activities			(42,398	)			(119,254	)			(1,802	)
Cash flows from financing activities:
Proceeds from issuance of equity shares/shares pending allotment			5				4				—
Repayment of loans and borrowings			(73,202	)			(89,569	)			(1,353	)
Proceeds from loans and borrowings			83,637				100,828				1,523
Proceeds from sale of treasury shares			1,000				—				—
Interest paid on loans and borrowings			(701	)			(1,030	)			(16	)
Pavment of cash dividend (including dividend tax thereon)			(14,672	)			(20,701	)			(313	)
Net cash used in financing activities			(3,933	)			(10,468	)			(159	)
Net increase/(decrease) in cash and cash equivalents during the period			6,405				(70,126	)			(1,061	)
Effect of exchange rate changes on cash and cash equivalents			215				455				7
Cash and cash equivalents at the beginning of the period			114,201				158,713				2,398
Cash and cash equivalents at the end of the period (Note 9)			120,821				89,042				1,344

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

As per our report of even date attached		For and on behalf of the Board of Directors
for B S R & Co. LLP Chartered Accountants Firm’s Registration No: 101248W/W- 100022		T K Kurien Executive Director & Chief Executive Officer		N Vaghul Director
Vijay Mathur Partner Membership No. 046476		Jatin Pravinchandra Dalal Chief Financial Officer		Rishad Premji Chief Strategy Officer & Executive Director		M Sanaulla Khan Company Secretary
Mumbai		Bangalore
January 18, 2016		January 18, 2016

7

WIPRO LIMITED AND SUBSIDIARIES

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

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

1. The Company overview

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

Wipro is a public limited company incorporated and domiciled in India. The address of its registered office is Wipro Limited, Doddakannelli, Sarjapur Road, Bangalore—560035, Karnataka, India. Wipro has its primary listing with Bombay Stock Exchange and National Stock Exchange in India. The Company’s American Depository Shares representing equity shares are also listed on the New York Stock Exchange. These condensed consolidated interim financial statements were authorized for issue by the Company’s Board of Directors on January 18, 2016.

2. Basis of preparation of financial statements

(i) Statement of compliance

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

(ii) Basis of preparation

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

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

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

(iii) Basis of measurement

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

a. Derivative financial instruments;

b. Available-for-sale financial assets; and

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

8

(iv) Convenience translation (unaudited)

The accompanying condensed consolidated interim financial statements have been prepared and reported in Indian rupees, the national currency of India. Solely for the convenience of the readers, the condensed consolidated interim financial statements as of and for the three months and nine months ended December 31, 2015, have been translated into United States dollars at the certified foreign exchange rate of $ 1 = 66.19, as published by the Federal Reserve Board of Governors on December 31, 2015. No representation is made that the Indian rupee amounts have been, could have been or could be converted into United States dollars at such a rate or any other rate.

(v) Use of estimates and judgment

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

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

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

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

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

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

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

9

f) Other estimates: The Company estimates the uncollectability of accounts receivable by analyzing historical payment patterns, customer concentrations, customer credit-worthiness and current economic trends. If the financial condition of a customer deteriorates, additional allowances may be required. The stock compensation expense is determined based on the Company’s estimate of equity instruments that will eventually vest.

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

3. Significant accounting policies

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

New Accounting standards adopted by the Company:

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

New accounting standards not yet adopted:

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

IFRS 9 – Financial instruments

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

10

IFRS 15 – Revenue from Contracts with Customers

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

IFRS 16 – Leases

On January 13, 2016, the International Accounting Standards Board issued the final version of IFRS 16, Leases. IFRS 16 will replace the existing leases Standard, IAS 17 Leases, and related interpretations. The standard sets out the principles for the recognition, measurement, presentation and disclosure of leases. IFRS 16 introduces a single lessee accounting model and requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. The Standard also contains enhanced disclosure requirements for lessees. The effective date for adoption of IFRS 16 is annual periods beginning on or after January 1, 2019, though early adoption is permitted for companies applying IFRS 15 Revenue from Contracts with Customers. The Company is yet to evaluate the requirements of IFRS 16 and determine the impact on its consolidated financial statements.

4. Property, plant and equipment

		Land				Buildings				Plant and machinery*				Furniture fixtures and equipment				Vehicles				Total
Gross carrying value:
As at April 1, 2014			3,687				24,062				72,310				12,347				966				113,372
Translation adjustment			5				119				815				(1	)			(8	)			930
Additions			—				307				8,996				669				26				9,998
Additions through business combination			—				96				805				161				1				1,063
Disposal / adjustments			—				(107	)			(1,869	)			(306	)			(36	)			(2,318	)
As at December 31, 2014			3,692				24,477				81,057				12,870				949				123,045
Accumulated depreciation/impairment:
As at April 1, 2014			—				3,815				52,315				9,535				944				66,609
Translation adjustment			—				49				564				3				—				616
Depreciation			—				557				6,744				1,100				10				8,411
Disposal / adjustments			—				(94	)			(1,444	)			(193	)			(31	)			(1,762	)
As at December 31, 2014			—				4,327				58,179				10,445				923				73,874
Capital work-in-progress																							4,997
Net carrying value as at December 31, 2014																							54,168
Gross carrying value:
As at April 1, 2014			3,687				24,062				72,310				12,347				966				113,372
Translation adjustment			(2	)			50				122				(120	)			(22	)			28
Additions			—				446				11,978				873				36				13,333
Additions through business combination			—				89				871				120				1				1,081
Disposal / adjustments			—				(132	)			(5,687	)			(522	)			(151	)			(6,492	)
As at March 31, 2015			3,685				24,515				79,594				12,698				830				121,322

11

		Land				Buildings				Plant and machinery*				Furniture fixtures and equipment				Vehicles				Total
Accumulated depreciation/impairment:
As at April 1, 2014			—				3,815				52,315				9,535				944				66,609
Translation adjustment			—				36				243				(71	)			2				210
Depreciation			—				755				9,220				1,430				12				11,417
Disposal / adjustments			—				(93	)			(5,149	)			(258	)			(149	)			(5,649	)
As at March 31, 2015			—				4,513				56,629				10,636				809				72,587
Capital work-in-progress																							5,471
Net carrying value as at March 31, 2015																							54,206
Gross carrying value:
As at April 1, 2015			3,685				24,515				79,594				12,698				830				121,322
Translation adjustment			12				187				1,412				70				(6	)			1,675
Additions			—				962				10,604				878				9				12,453
Additions through business combination			—				14				—				41				—				55
Disposal / adjustments			—				(36	)			(1,570	)			(699	)			(44	)			(2,349	)
As at December 31, 2015			3,697				25,642				90,040				12,988				789				133,156
Accumulated depreciation/impairment:
As at April 1, 2015			—				4,513				56,629				10,636				809				72,587
Translation adjustment			—				67				923				51				(2	)			1,039
Depreciation			—				737				8,099				842				15				9,693
Disposal / adjustments			—				(57	)			(1,154	)			(581	)			(36	)			(1,828	)
As at December 31, 2015			—				5,260				64,497				10,948				786				81,491
Capital work-in-progress																							5,695
Net carrying value as at December 31, 2015																							57,360

^*  Including computer equipment and software

5. Goodwill and intangible assets

The movement in goodwill balance is given below:

		Year ended March 31, 2015				Nine months ended December 31, 2015
Balance at the beginning of the period			63,422				68,078
Translation adjustment			1,098				3,237
Acquisition through business combination, net			3,558				4,046
Balance at the end of the period			68,078				75,361

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		Intangible assets
		Customer related				Marketing related				Total
Gross carrying value:
As at April 1, 2014			3,404				1,100				4,504
Translation adjustment			(248	)			(24	)			(272	)
Acquisition through business combination			8,073				—				8,073
As at December 31, 2014			11,229				1,076				12,305
Accumulated amortization and impairment:
As at April 1, 2014			1,892				676				2,568
Translation adjustment			—				(37	)			(37	)
Amortization			812				164				976
As at December 31, 2014			2,704				803				3,507
Net carrying value as at December 31, 2014			8,525				273				8,798
Gross carrying value:
As at April 1, 2014			3,404				1,100				4,504
Translation adjustment			(1,015	)			(95	)			(1,110	)
Disposal/ adjustment			—				(100	)			(100	)
Acquisition through business combination			8,228				—				8,228
As at March 31, 2015			10,617				905				11,522
Accumulated amortization and impairment:
As at April 1, 2014			1,892				676				2,568
Translation adjustment			—				(104	)			(104	)
Disposal/ adjustment			—				(82	)			(82	)
Amortization and impairment			1,044				165				1,209
As at March 31, 2015			2,936				655				3,591
Net carrying value as at March 31, 2015			7,681				250				7,931
Gross carrying value:
As at April 1, 2015			10,617				905				11,522
Translation adjustment			(55	)			70				15
Acquisition through business combination			597				741				1,338
As at December 31, 2015			11,159				1,716				12,875
Accumulated amortization and impairment:
As at April 1, 2015			2,936				655				3,591
Translation adjustment			—				42				42
Amortization			836				132				968
As at December 31, 2015			3,772				829				4,601
Net carrying value as at December 31, 2015			7,387				887				8,274

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

6. Business combination

ATCO I-Tek Inc.

On August 15, 2014, the Company obtained control of ATCO I-Tek Inc, a Canadian entity, by acquiring 100% of its share capital and certain assets of IT services business of ATCO I-Tek Australia (hereafter the acquisitions are collectively referred to as ‘acquisition of ATCO I-Tek’) for an all-cash consideration of 11,071 (Canadian Dollars 198 million) post conclusion of closing conditions and fair value adjustments. ATCO I-Tek provides IT services to ATCO Group. The acquisition will strengthen Wipro’s IT services delivery model in North America and Australia.

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The following table presents the allocation of purchase price:

Description		Pre-acquisition carrying amount				Fair value adjustments				Purchase price allocated
Net assets			1,330				(278	)			1,052
Customer related intangibles			—				8,228				8,228
Deferred tax liabilities			—				(2,017	)			(2,017	)
Total			1,330				5,933				7,263
Goodwill											3,808
Total purchase price											11,071

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

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 will strengthen the Company’s 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 6,540 million (EUR 93 million) which includes a deferred earn-out component of 2,092 million (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 preliminary purchase price allocation.

During the current period, an amount of 55 million (EUR 0.8 million) has been received by the Company on conclusion of certain closing conditions which has been recorded as a reduction of the purchase consideration, thereby resulting in reduction of goodwill as at December 31, 2015.

The following table presents the provisional allocation of purchase price:

Description		Pre-acquisition carrying amount				Fair value adjustments				Purchase price allocated
Net assets			586				—				586
Customer related intangibles			—				597				597
Brand			—				638				638
Non-compete agreement			—				103				103
Deferred tax liabilities			—				(290	)			(290	)
Total			586				1,048				1,634
Goodwill											4,046
Total purchase price											5,680

Net assets acquired include 359 of cash and cash equivalents and trade receivables valued at 392.

The goodwill of 4,046 comprises value of acquired workforce and expected synergies arising from the acquisition. Goodwill is not deductible for income tax purposes.

The pro-forma effects of this acquisition on the Company’s operations were not material.

The purchase consideration has been allocated on a provisional basis based on management’s estimates. The Company is in the process of making a final determination of the fair value of assets and liabilities. Finalization of the purchase price allocation may result in certain adjustments to the above allocation.

14

Cellent AG

On December 2, 2015, the Company entered into a share purchase agreement to acquire 100% share capital of Cellent AG, an IT consulting and software services company offering IT solutions and services to customers in Germany for a purchase consideration of EUR 80.4 million. This acquisition is expected to provide Wipro with scale and customer relationships, in the Manufacturing and Automotive domains in Germany, Switzerland and Austria region.

The acquisition was completed on January 5, 2016, after conclusion of customary closing conditions and receipt of regulatory approvals. The Company is in the process of allocating the purchase consideration to identifiable assets and liabilities.

Viteos Group

On December 23, 2015, the Company entered into an agreement to acquire Viteos Group, a BPaaS provider for the alternative investment management industry for a purchase consideration of USD 130 million. The acquisition is subject to customary closing conditions and regulatory approvals and will be completed in the quarter ending March 31, 2016.

7. Available for sale investments

Available for sale investments consists of the following:

		As at March 31, 2015																As at December 31, 2015
		Cost*				Gross gain recognized directly in equity				Gross loss recognized directly in equity				Fair Value				Cost*				Gross gain recognized directly in equity				Gross loss recognized directly in equity				Fair Value
Investment in liquid and short-term mutual funds and others			56,437				1,340				(2	)			57,775				154,426				1,616				—				156,042
Total			56,437				1,340				(2	)			57,775				154,426				1,616				—				156,042
Current															53,908																151,651
Non-current															3,867																4,391

* Available for sale investments include investments amounting to  107 (March 31, 2015:  Nil) pledged for entering into currency future contracts.

8. Inventories

Inventories consist of the following:

		As at
		March 31, 2015				December 31, 2015
Stores and spare parts			932				859
Raw materials and components			5				2
Finished goods and traded goods			3,912				5,234
			4,849				6,095

9. Cash and cash equivalents

Cash and cash equivalents as of March 31, 2015 and December 31, 2015 consist of cash and balances on deposit with banks. Cash and cash equivalents consist of the following:

		As at
		March 31, 2015				December 31, 2015
Cash and bank balances			47,198				24,951
Demand deposits with banks (1)			111,742				65,022
			158,940				89,973

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

15

Demand deposits with banks include deposits pledged to banks amounting to 114 (March 31, 2015: Nil).

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

		As at
		December 31, 2014				December 31, 2015
Cash and cash equivalents			122,113				89,973
Bank overdrafts			(1,292	)			(931	)
			120,821				89,042

10. Other assets

		As at
		March 31, 2015				December 31, 2015
Current
Inter corporate and term deposits (1) (2)			38,500				64,618
Prepaid expenses			10,562				10,839
Due from officers and employees			3,488				3,867
Finance lease receivables			3,461				2,023
Advance to suppliers			2,430				1,840
Deferred contract costs			3,610				3,930
Interest receivable			5,290				5,292
Deposits			763				593
Balance with excise, customs and other authorities			1,786				1,708
Others (3) (4)			3,469				3,041
			73,359				97,751
Non current
Prepaid expenses including rentals for leasehold land			6,630				6,983
Finance lease receivables			2,899				2,163
Deferred contract costs			4,445				3,959
Deposits			65				150
Others			330				463
			14,369				13,718
Total			87,728				111,469

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

⁽²⁾ Term deposits include deposits amounting to  114 (March 31, 2015:  300) which are lien marked as margin money deposits.

⁽³⁾  Others include  27 (March 31, 2015:  77) due from Wipro Enterprises Private Limited (formerly Wipro Enterprises Limited) and its subsidiaries.

⁽⁴⁾ Others include  370 (March 31, 2015:  400) representing assets held for sale.

11. Loans and borrowings

A summary of loans and borrowings is as follows:

		As at
		March 31, 2015				December 31, 2015
Short-term borrowings from banks			64,335				80,574
External commercial borrowings			9,375				9,924
Obligations under finance leases			4,878				6,928
Term loans			325				502
Total loans and borrowings			78,913				97,928

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12. Other liabilities and provisions

		As at
		March 31, 2015				December 31, 2015
Other liabilities
Current:
Statutory and other liabilities			3,530				4,008
Employee benefit obligations			4,802				5,341
Advance from customers			2,200				1,495
Others (1)			1,691				1,778
			12,223				12,622
Non-current:
Employee benefit obligations			3,062				5,313
Others			596				1,983
			3,658				7,296
Total			15,881				19,918

⁽¹⁾  Others include  66 (March 31, 2015:  340) due to Wipro Enterprises Private Limited (formerly Wipro Enterprises Limited) and its subsidiaries

		As at
		March 31, 2015				December 31, 2015
Provisions
Current:
Provision for warranty			306				333
Others			1,211				911
			1,517				1,244
Non-current:
Provision for warranty			5				15
Total			1,522				1,259

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

13. Financial instruments

Derivative assets and liabilities:

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

17

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

		As at
		March 31, 2015				December 31, 2015
Designated derivative instruments
Sell		$	836			$	896
		£	198			£	248
		€	220			€	283
		AUD	83			AUD	132
Interest rate swaps		$	150			$	150
Net investment hedges in foreign operations
Others		$	145			$	95
Non designated derivative instruments
Sell		$	1,304			$	815
		£	67			£	52
		€	60			€	82
		AUD	53			AUD	39
		¥	490			¥	490
		SGD	13			SGD	3
		ZAR	69			ZAR	109
		CAD	30			CAD	11
		CHF	10			CHF	10
Buy		$	790			$	970

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 December 31,
		2014				2015
Balance as at the beginning of the period			567				4,268
Deferred cancellation gain/ (loss)			(9	)			6
Changes in fair value of effective portion of derivatives			1,046				(1,947	)
Gain/ (loss) on cash flow hedging derivatives, net			1,037				(1,941	)
Balance as at the end of the period			1,604				2,327
Deferred tax asset/ (liability) thereon			(269	)			(408	)
Balance as at the end of the period, net of deferred tax			1,335				1,919

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

14. Fair value hierarchy

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

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

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

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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).

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

		As at March 31, 2015																As at December 31, 2015
Particulars		Fair value measurements at reporting date using																Fair value measurements at reporting date using
		Total				Level 1				Level 2				Level 3				Total				Level 1				Level 2				Level 3
Assets
Derivative instruments
- Cash flow hedges			4,237				—				4,237				—				2,529				—				2,529				—
- Net investment hedges			140				—				140				—				—				—				—				—
- Others			1,436				—				912				524				1,194				—				650				544
Available for sale financial assets:
- Investment in liquid and short- term mutual funds			10,202				10,202				—				—				49,134				49,134				—				—
- Other Investments			43,706				2,046				41,660				—				102,517				2,487				100,030				—
-Investment in equity instruments			3,867				—				—				3,867				4,391				—				—				4,391
Liabilities
Derivative instruments
- Cash flow hedges			80				—				80				—				196				—				196				—
- Net investment hedges			264				—				264				—				210				—				210				—
- Others			480				—				480				—				552				—				552				—
Contingent consideration			110				—				—				110				1,612				—				—				1,612

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

Derivative instruments (assets and liabilities): The Company enters into derivative financial instruments with various counter-parties, primarily banks with investment grade credit ratings. Derivatives valued using valuation techniques with market observable inputs are mainly interest rate swaps, foreign exchange forward contracts and foreign exchange option contracts. The most frequently applied valuation techniques include forward pricing, swap models and Black Scholes models (for option valuation), using present value calculations. The models incorporate various inputs including the credit quality of counterparties, foreign exchange spot and forward rates, interest rate curves and forward rate curves of the underlying. As on December 31, 2015, the changes in counterparty credit risk had no material effect on the hedge effectiveness assessment for derivatives designated in hedge relationships and other financial instruments recognized at fair value.

Available for sale investments (Investment in commercial papers): Fair value of available-for-sale financial assets is derived based on the indicative quotes of price and yields prevailing in the market as on December 31, 2015.

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Details of assets and liabilities considered under Level 3 classification:

		Available for sale investments – Equity instruments				Derivative Assets – Others				Liabilities – Contingent consideration
Opening balance as on April 1, 2014			2,676				110				(789	)
Additions			546				433				—
Disposals/ payouts			(916	)			—				39
Measurement period adjustment to goodwill			—				—				193
Gain/loss recognized in statement of income			608				(19	)			447
Gain recognized in other comprehensive income			953				—				—
Closing balance as on March 31, 2015			3,867				524				(110	)

		Available for sale investments – Equity instruments				Derivative Assets – Others				Liabilities – Contingent consideration
Opening balance as on April 1, 2015			3,867				524				(110	)
Additions			338				—				(1,373	)
Gain/loss recognized in statement of income			—				20				—
Gain/loss recognized in foreign currency translation reserve			—				—				(45	)
Gain/loss recognized in other comprehensive income			186				—				—
Loss included in ‘Finance Expense’ – Net change in fair value (unrealized)			—				—				(84	)
Closing balance as on December 31, 2015			4,391				544				(1,612	)

Description of significant unobservable inputs to valuation:

Item		Valuation technique		Significant unobservable inputs		Input		Sensitivity of the input to fair value
Available for sale investments in unquoted equity shares		Discounted cash flow model		Long term growth rate		2%		0.5% increase (decrease) in growth rate would result in increase (decrease) in fair value of AFS investments by 44, ( 40) respectively
				Discount rate		14%		0.5% increase (decrease) in discount rate would result in increase (decrease) in fair value of AFS investments by 85 ( 91) respectively
Market multiple approach				Revenue multiple		4.1X		0.5% increase (decrease) in revenue multiple would result in increase (decrease) in fair value of AFS investments by 148 ( 152) respectively
Derivative assets		Option pricing model		Volatility of comparable companies		45%		2.5% increase (decrease) in volatility would result in increase (decrease) in fair value of the derivative asset by 34, (  34) respectively
				Time to liquidation event		4.5 years		1 year increase (decrease) in time to liquidation event would result in increase (decrease) in fair value of the derivative asset by 67, ( 75), respectively

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15. Foreign currency translation reserve

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

		As at December 31,
		2014				2015
Balance at the beginning of the period			10,060				11,249
Translation difference related to foreign operations, net			2,475				4,174
Change in effective portion of hedges of net investment in foreign operations			—				(590	)
Total change during the period			2,475				3,584
Balance at the end of the period			12,535				14,833

16. Income taxes

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

		Three months ended December 31,								Nine months ended December 31,
		2014				2015				2014				2015
Income tax expense as per the statement of income			6,228				6,248				18,369				18,679
Income tax included in other comprehensive income on:
Unrealized gain on available for sale investments			75				(43	)			139				(47	)
Gain / (loss) on cash flow hedging derivatives			71				165				200				(310	)
Defined benefit plan actuarial gains / (losses)			(18	)			(7	)			(39	)			(211	)
Total income taxes			6,356				6,363				18,669				18,111

Income tax expense consists of the following:

		Three months ended December 31								Nine months ended December 31
		2014				2015				2014				2015
Current taxes
Domestic			4,378				4,742				14,566				14,897
Foreign			3,128				1,323				5,375				3,867
			7,506				6,065				19,941				18,764
Deferred taxes
Domestic			(176)				(32)				(487)				(296)
Foreign			(1,102	)			215				(1,085	)			211
			(1,278)				183				(1,572)				(85)
Total income tax expense			6,228				6,248				18,369				18,679

Income tax expense is net of reversal of provisions recorded in earlier periods, which are no longer required, amounting to 5 and 314 for the three months ended December 31, 2014 and 2015 respectively and 515 and 939 for the nine months ended December 31, 2014 and 2015 respectively.

17. Revenues

		Three months ended December 31,								Nine months ended December 31,
		2014				2015				2014				2015
Rendering of services			112,291				121,764				323,932				355,098
Sale of products			7,638				6,841				24,193				21,018
Total revenues			119,929				128,605				348,125				376,116

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18. Expenses by nature

		Three months ended December 31,								Nine months ended December 31,
		2014				2015				2014				2015
Employee compensation			57,175				61,465				168,011				181,786
Sub-contracting/technical fees			14,137				17,410				38,908				47,851
Cost of hardware and software			7,404				7,065				23,098				20,630
Travel			6,171				6,461				16,521				18,102
Facility expenses			3,880				4,316				10,917				12,441
Depreciation and amortization			3,647				3,764				9,556				10,661
Communication			1,386				1,262				3,887				3,821
Legal and professional fees			1,013				931				2,676				2,854
Rates, taxes and insurance			535				680				1,593				1,976
Advertisement			365				610				1,066				1,661
Provision for doubtful debt			65				445				642				1,108
Miscellaneous expenses			1,039				1,233				3,726				3,814
Total cost of revenues, selling and marketing and general and administrative expenses			96,817				105,642				280,601				306,705

19. Finance expense

		Three months ended December 31,								Nine months ended December 31,
		2014				2015				2014				2015
Interest expense			96				360				525				1,001
Exchange fluctuation on foreign currency borrowings, net			714				1,063				2,162				3,297
Total			810				1,423				2,687				4,298

20. Finance and other income

		Three months ended December 31,								Nine months ended December 31,
		2014				2015				2014				2015
Interest income			4,060				5,315				10,985				15,446
Dividend income			14				11				185				65
Gain on sale of investments			961				901				3,213				2,152
Total			5,035				6,227				14,383				17,663

21. Earnings per equity share

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

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

		Three months ended December 31,								Nine months ended December 31,
		2014				2015				2014				2015
Profit attributable to equity holders of the Company			21,928				22,381				63,808				66,612
Weighted average number of equity shares outstanding			2,457,766,859				2,457,022,905				2,457,491,867				2,456,551,992
Basic earnings per share			8.92				9.09				25.97				27.10

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

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

		Three months ended December 31,								Nine months ended December 31,
		2014				2015				2014				2015
Profit attributable to equity holders of the Company			21,928				22,381				63,808				66,612
Weighted average number of equity shares outstanding			2,457,766,859				2,457,022,905				2,457,491,867				2,456,551,992
Effect of dilutive equivalent share options			11,556,384				5,198,021				10,770,968				4,730,419
Weighted average number of equity shares for diluted earnings per share			2,469,323,243				2,462,220,926				2,468,262,835				2,461,282,411
Diluted earnings per share			8.88				9.07				25.85				27.05

22. Employee benefits

a) Employee costs include

		Three months ended December 31,								Nine months ended December 31,
		2014				2015				2014				2015
Salaries and bonus			55,718				59,536				163,678				176,388
Employee benefit plans
Gratuity			162				229				485				693
Contribution to provident and other funds			990				1,333				2,961				3,556
Share based compensation			305				367				887				1,149
			57,175				61,465				168,011				181,786

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

		Three months ended December 31,								Nine months ended December 31,
		2014				2015				2014				2015
Cost of revenues			48,528				52,133				141,836				153,968
Selling and marketing expenses			5,415				5,745				16,492				17,520
General and administrative expenses			3,232				3,587				9,683				10,298
			57,175				61,465				168,011				181,786

The Company has granted 20,000 and 2,850,400 options under RSU option plan during the three and nine months ended December 31, 2015 respectively (Nil and 2,480,000 for three and nine months ended December 31, 2014); 200,000 and 1,697,700 options under ADS during the three and nine months ended December 31, 2015 respectively (Nil and 1,689,500 for three and nine months ended December 31, 2014).

23. Commitments and contingencies

Capital commitments: As at March 31, 2015 and December 31, 2015, the Company had committed to spend approximately 1,262 and  1,640 respectively, under agreements to purchase property and equipment. These amounts are net of capital advances paid in respect of these purchases.

Guarantees: As at March 31, 2015 and December 31, 2015, performance and financial guarantees provided by banks on behalf of the Company to the Indian Government, customers and certain other agencies amount to approximately 21,235 and 24,078, respectively, as part of the bank line of credit.

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

In March 2004, the Company received a tax demand for year ended March 31, 2001 arising primarily on account of denial of deduction under section 10A of the Income Tax Act, 1961 (Act) in respect of profit earned by the Company’s undertaking in Software Technology Park at Bangalore. The same issue was repeated in the successive assessments for the years ended March 31, 2002 to March 31, 2010 and the aggregate demand is 46,515 (including interest of 13,673). The appeals filed against the said demand before the Appellate authorities have been allowed in favor of the Company by the second appellate authority for the years up to March 31, 2007. Further appeals have been filed by the Income tax authorities before the Hon’ble High Court. The Hon’ble High Court has heard and disposed-off majority of the issues in favor of the Company up to year ended March 31, 2004.

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

For year ended March 31, 2011, the Company received the draft assessment order in March 2015, on similar grounds as that of earlier years, with a demand of 7,852 (including interest of 2,547). On Company’s appeal before DRP, favorable directions have been received during this quarter ended December 31, 2015 allowing majority of the issues in favor of the company in line with the order of Hon’ble High Court.

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

The Contingent liability in respect of disputed demands for excise duty, customs duty, sales tax and other matters amounts to 2,560 and 2,656 as of March 31, 2015 and December 31, 2015, respectively.

24. Segment information

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

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

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

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

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

Information on reportable segment for the three months ended December 31, 2014 is as follows:

		IT Services																																IT Products				Reconciling Items				Entity total
		BFSI				HLS				RCTG				ENU				MFG				GMT				Others				Total
Revenue			29,177				13,247				16,005				18,637				20,718				15,661				—				113,445				7,740				(334	)			120,851
Segment Result			7,035				2,981				3,255				4,262				4,228				3,438				—				25,199				89				(796	)			24,492
Unallocated																															(458	)			—				—				(458	)
Segment Result Total																															24,741				89				(796	)			24,034
Finance expense																																											(810	)
Finance and other income																																											5,035
Profit before tax																																											28,259
Income tax expense																																											(6,228	)
Profit for the period																																											22,031
Depreciation and amortization																																											3,647

Information on reportable segment for the three months ended December 31, 2015 is as follows:

		IT Services																																IT Products				Reconciling Items				Entity total
		BFSI				HLS				RCTG				ENU				MFG				GMT				Others				Total
Revenue			32,322				14,719				19,158				17,708				22,683				16,557				—				123,147				6,503				(134	)			129,516
Segment Result			7,199				3,188				3,809				3,436				4,142				3,093				—				24,867				(505	)			(441	)			23,921
Unallocated																															(47	)			—				—				(47	)
Segment Result Total																															24,820				(505	)			(441	)			23,874
Finance expense																																											(1,423	)
Finance and other income																																											6,227
Profit before tax																																											28,678
Income tax expense																																											(6,248	)
Profit for the period																																											22,430
Depreciation and amortization																																											3,764

Information on reportable segment for the Nine months ended December 31, 2014 is as follows:

		IT Services																																IT Products				Reconciling Items				Entity total
		BFSI				HLS				RCTG				ENU				MFG				GMT				Others				Total
Revenue			85,653				36,713				45,951				53,792				59,721				45,933				—				327,763				24,552				(847	)			351,468
Segment Result			19,904				7,534				9,648				13,483				12,630				10,696				583				74,478				316				(2,321	)			72,473
Unallocated																															(1,606	)			—				—				(1,606	)
Segment Result Total																															72,872				316				(2,321	)			70,867
Finance expense																																											(2,687	)
Finance and other income																																											14,383
Profit before tax																																											82,563
Income tax expense																																											(18,369	)
Profit for the period																																											64,194
Depreciation and amortization																																											9,556

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Information on reportable segment for the nine months ended December 31, 2015 is as follows:

		IT Services																																IT Products				Reconciling Items				Entity total
		BFSI				HLS				RCTG				ENU				MFG				GMT				Others				Total
Revenue			95,595				41,453				54,650				52,949				66,769				47,932				—				359,348				20,119				(577	)			378,890
Segment Result			21,147				8,991				10,211				10,745				13,270				8,928				—				73,292				(574	)			(1,292	)			71,426
Unallocated																															759				—				—				759
Segment Result Total																															74,051				(574	)			(1,292	)			72,185
Finance expense																																											(4,298	)
Finance and other income																																											17,663
Profit before tax																																											85,550
Income tax expense																																											(18,679	)
Profit for the period																																											66,871
Depreciation and amortization																																											10,661

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

		Three months ended December 31								Nine months ended December 31
		2014				2015				2014				2015
India			10,649				12,075				32,388				37,502
Americas			58,735				65,551				168,744				190,706
Europe			31,818				31,309				94,069				91,944
Rest of the world			19,649				20,581				56,267				58,738
			120,851				129,516				351,468				378,890

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

No client individually accounted for more than 10% of the revenues during the nine months ended December 31, 2014 and 2015.

Notes:

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

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

c) Revenues include excise duty of 2 and Nil for the nine months ended December 31, 2014 and 2015, respectively. For the purpose of segment reporting, the segment revenues are net of excise duty. Excise duty is reported in reconciling items.

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

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

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

g) For evaluating the performance of the individual business segments, amortization of intangibles arising out of business combinations are reported in reconciling items.

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

25. List of subsidiaries as of December 31, 2015 are provided in the table below:

Subsidiaries		Subsidiaries		Subsidiaries		Country of Incorporation
Wipro LLC (formerly Wipro, Inc.)						USA
		Wipro Gallagher Solutions, Inc.		Opus Capital Markets Consultants LLC		USA USA
		Infocrossing, Inc.				USA
		Wipro Promax Analytics Solutions LLC [Formerly Promax Analytics Solutions Americas LLC]				USA
		Wipro Insurance Solutions LLC Wipro Data Centre and Cloud Services, Inc. (formerly Macaw Merger, Inc.) Wipro IT Services, Inc.				USA USA USA
Wipro Overseas IT Services Pvt. Ltd						India
Wipro Japan KK						Japan
Wipro Shanghai Limited						China
Wipro Trademarks Holding Limited						India
Wipro Travel Services Limited						India
Wipro Holdings (Mauritius) Limited						Mauritius
		Wipro Holdings UK Limited				U.K.
				Wipro Information Technology Austria GmbH(A) (Formerly Wipro Holdings Austria GmbH) Wipro Digital Aps (A)		Austria Denmark
				3D Networks (UK) Limited Wipro Europe Limited (formerly SAIC Europe Limited) (A)		U.K. U.K.
				Wipro Promax Analytics Solutions (Europe) Limited (formerly Promax Analytics Solutions (Europe) Ltd)		UK

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Subsidiaries		Subsidiaries		Subsidiaries		Country of Incorporation
Wipro Cyprus Private Limited						Cyprus
		Wipro Doha LLC#				Qatar
		Wipro Technologies S.A DE C.V				Mexico
		Wipro BPO Philippines LTD. Inc				Philippines
		Wipro Holdings Hungary Korlátolt Felelősségű Társaság				Hungary
		Wipro Technologies Argentina SA				Argentina
		Wipro Information Technology Egypt SAE				Egypt
		Wipro Arabia Limited*				Saudi Arabia
		Wipro Poland Sp. Z.o.o				Poland
		Wipro IT Services Poland Sp. z o. o				Poland
		Wipro Technologies Australia Pty Ltd (formerly Promax Applications Group Pty Ltd)				Australia
		Wipro Corporate Technologies Ghana Limited				Ghana
		Wipro Technologies South Africa (Proprietary) Limited				South Africa
				Wipro Technologies Nigeria Limited		Nigeria
		Wipro Information Technology Netherlands BV.				Netherland
				Wipro Portugal S.A.(A)		Portugal
				Wipro Technologies Limited, Russia		Russia
				Wipro Technology Chile SPA		Chile
				Wipro Solutions Canada Limited		Canada
				Wipro Information Technology Kazakhstan LLP		Kazakhstan
				Wipro Technologies W.T. Sociedad Anonima		Costa Rica
				Wipro Outsourcing Services (Ireland) Limited		Ireland
				Wipro IT Services Ukraine LLC		Ukraine
				Wipro Technologies Norway AS		Norway
				Wipro Technologies VZ, C.A.		Venezuela
				Wipro Technologies Peru S.A.C		Peru
		Wipro Technologies SRL				Romania
		PT WT Indonesia				Indonesia
		Wipro Australia Pty Limited				Australia
				Wipro Promax Holdings Pty Ltd (formerly Promax Holdings Pty Ltd) (A)		Australia
		Wipro (Thailand) Co Limited				Thailand
		Wipro Bahrain Limited WLL				Bahrain
		Wipro Gulf LLC				Sultanate of Oman

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Subsidiaries		Subsidiaries		Subsidiaries		Country of Incorporation
Wipro Networks Pte Limited (formerly 3D Networks Pte Limited)						Singapore
		Wipro (Dalian) Limited				China
		Wipro Technologies SDN BHD				Malaysia
Wipro Chengdu Limited						China
Wipro Airport IT Services Limited*						India

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

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

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

Wipro LLC a wholly owned subsidiary of Wipro Limited has invested in Drivestream Inc and holds 19.02% of equity.

^(A) Step Subsidiary details of Wipro Information Technology Austria GmbH, Wipro Europe Limited, Wipro Portugal S.A, Wipro Promax Holdings Pty Ltd and Wipro Digital Aps are as follows:

Subsidiaries		Subsidiaries		Country of Incorporation
Wipro Information Technology Austria GmbH (Formerly Wipro Holdings Austria GmbH)				Austria
		Wipro Technologies Austria GmbH		Austria
		New Logic Technologies SARL		France
Wipro Europe Limited (formerly SAIC Europe Limited)				U.K.
		Wipro UK Limited		U.K.
		Wipro Europe SARL		France
Wipro Portugal S.A.				Portugal
		SAS Wipro France		France
		Wipro Retail UK Limited		U.K.
		Wipro do Brasil Technologia Ltda		Brazil
		Wipro Technologies Gmbh		Germany
		Wipro Do Brasil Sistemetas De Informatica Ltd		Brazil
Wipro Promax Holdings Pty Ltd (formerly Promax Holdings Pty Ltd)				Australia
		Wipro Promax IP Pty Ltd (formerly PAG IP Pty Ltd)		Australia
Wipro Digital Aps		Designit A/S Designit Denmark A/S Designit MunchenGmbH Denextep Consulting S.L Designit Oslo A/S Designit Sweden AB Designit T.L.V Ltd. Designit Tokyo Ltd.		Denmark Denmark Denmark Germany Spain Norway Sweden Israel Japan

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26. Bank Balances

Details of balances with banks as of December 31, 2015 are as follows:

Bank Name		In Current Account				In Deposit Account				Total
Axis Bank			9				21,650				21,659
Bank of Baroda			—				17,640				17,640
Citi Bank			15,122				1,429				16,551
ICICI Bank			37				7,760				7,797
Yes Bank			1				4,900				4,901
Canara Bank			—				4,150				4,150
Oriental Bank of Commerce			—				4,000				4,000
HSBC			2,236				1,322				3,558
Wells Fargo Bank			1,945				—				1,945
HDFC			106				931				1,037
Bank of Montreal			720				—				720
Saudi British Bank			213				440				653
Corporation Bank			—				500				500
BMO Harris Bank			487				—				487
Standard Chartered Bank			360				—				360
Others including cash and cheques on hand			3,715				300				4,015
Total			24,951				65,022				89,973

27. Events after the reporting period

On January 18, 2016, the Board of Directors of the Company declared an interim dividend of 5 ($ 0.08) per equity share and ADR (250% on an equity share of par value of 2).

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

As per our report of even date attached		For and on behalf of the Board of Directors
for B S R & Co. LLP		T K Kurien		N Vaghul
Chartered Accountants		Executive Director		Director
Firm’s Registration No: 101248W/W-100022		& Chief Executive Officer
Vijay Mathur		Jatin Pravinchandra Dalal		Rishad Premji		M Sanaulla Khan
Partner		Chief Financial Officer		Chief Strategy Officer		Company Secretary
Membership No. 046476				& Executive Director
Mumbai		Bangalore
January 18, 2016		January 18, 2016

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