EX-99.4 5 d626910dex994.htm EX-99.4

Exhibit 99.4

WIPRO LIMITED AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS UNDER IFRS

AS AT AND FOR THE THREE MONTHS AND SIX MONTHS ENDED SEPTEMBER 30, 2018

1

WIPRO LIMITED AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

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

|  |  |  | As at March 31, |  |  | As at September 30, |
|  | Notes |  | 2018 |  |  | 2018 |  |  | 2018 |
|  |  |  |  |  |  |  |  |  | Convenience translation into US dollar in millions (unaudited) Refer Note 2(iii) |
ASSETS |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  | 5 |  |  | 117,584 |  |  |  | 128,026 |  |  |  | 1,765 |
Intangible assets |  | 5 |  |  | 18,113 |  |  |  | 18,027 |  |  |  | 249 |
Property, plant and equipment |  | 4 |  |  | 64,443 |  |  |  | 68,370 |  |  |  | 943 |
Derivative assets |  | 13, 14 |  |  | 41 |  |  |  | 17 |  |  |  | — |
Investments |  | 7 |  |  | 7,668 |  |  |  | 7,494 |  |  |  | 103 |
Investment in equity accounted investee |  | 7 |  |  | 1,206 |  |  |  | 1,305 |  |  |  | 18 |
Trade receivables |  |  |  |  | 4,446 |  |  |  | 4,179 |  |  |  | 58 |
Deferred tax assets |  |  |  |  | 6,908 |  |  |  | 8,861 |  |  |  | 122 |
Non-current tax assets |  |  |  |  | 18,349 |  |  |  | 20,237 |  |  |  | 279 |
Other non-current assets |  | 10 |  |  | 15,726 |  |  |  | 20,227 |  |  |  | 279 |
Total non-current assets |  |  |  |  | 254,484 |  |  |  | 276,743 |  |  |  | 3,816 |
Inventories |  | 8 |  |  | 3,370 |  |  |  | 4,060 |  |  |  | 56 |
Trade receivables |  |  |  |  | 100,990 |  |  |  | 106,382 |  |  |  | 1,466 |
Other current assets |  | 10 |  |  | 30,596 |  |  |  | 27,150 |  |  |  | 374 |
Unbilled receivables |  |  |  |  | 42,486 |  |  |  | 28,685 |  |  |  | 395 |
Contract assets |  |  |  |  | — |  |  |  | 18,573 |  |  |  | 256 |
Investments |  | 7 |  |  | 249,094 |  |  |  | 248,815 |  |  |  | 3,430 |
Current tax assets |  |  |  |  | 6,262 |  |  |  | 7,895 |  |  |  | 109 |
Derivative assets |  | 13, 14 |  |  | 1,232 |  |  |  | 3,793 |  |  |  | 52 |
Cash and cash equivalents |  | 9 |  |  | 44,925 |  |  |  | 79,818 |  |  |  | 1,100 |
|  |  |  |  | 478,955 |  |  |  | 525,171 |  |  |  | 7,238 |
Assets held for sale |  |  |  |  | 27,201 |  |  |  | — |  |  |  | — |
Total current assets |  |  |  |  | 506,156 |  |  |  | 525,171 |  |  |  | 7,238 |
TOTAL ASSETS |  |  |  |  | 760,640 |  |  |  | 801,914 |  |  |  | 11,054 |
EQUITY |  |  |  |  |  |  |  |  |  |  |  |  |  |
Share capital |  |  |  |  | 9,048 |  |  |  | 9,048 |  |  |  | 125 |
Share premium |  |  |  |  | 800 |  |  |  | 879 |  |  |  | 12 |
Retained earnings |  |  |  |  | 453,265 |  |  |  | 491,401 |  |  |  | 6,774 |
Share based payment reserve |  |  |  |  | 1,772 |  |  |  | 2,260 |  |  |  | 31 |
Other components of equity |  |  |  |  | 18,051 |  |  |  | 17,414 |  |  |  | 240 |
Equity attributable to the equity holders of the Company |  |  |  |  | 482,936 |  |  |  | 521,002 |  |  |  | 7,182 |
Non-controlling interest |  |  |  |  | 2,410 |  |  |  | 2,312 |  |  |  | 32 |
TOTAL EQUITY |  |  |  |  | 485,346 |  |  |  | 523,314 |  |  |  | 7,214 |
LIABILITIES |  |  |  |  |  |  |  |  |  |  |  |  |  |
Long - term loans and borrowings |  | 11 |  |  | 45,268 |  |  |  | 52,329 |  |  |  | 721 |
Derivative liabilities |  | 13, 14 |  |  | 7 |  |  |  | — |  |  |  | — |
Deferred tax liabilities |  |  |  |  | 3,059 |  |  |  | 2,475 |  |  |  | 34 |
Non-current tax liabilities |  |  |  |  | 9,220 |  |  |  | 9,543 |  |  |  | 132 |
Other non-current liabilities |  | 12 |  |  | 4,230 |  |  |  | 4,688 |  |  |  | 65 |
Provisions |  | 12 |  |  | 3 |  |  |  | 2 |  |  |  | — |
Total non-current liabilities |  |  |  |  | 61,787 |  |  |  | 69,037 |  |  |  | 952 |
Loans, borrowings and bank overdrafts |  | 11 |  |  | 92,991 |  |  |  | 62,726 |  |  |  | 865 |
Trade payables and accrued expenses |  |  |  |  | 68,129 |  |  |  | 84,797 |  |  |  | 1,169 |
Unearned revenues |  |  |  |  | 17,139 |  |  |  | 23,607 |  |  |  | 325 |
Current tax liabilities |  |  |  |  | 9,417 |  |  |  | 13,667 |  |  |  | 188 |
Derivative liabilities |  | 13, 14 |  |  | 2,210 |  |  |  | 6,487 |  |  |  | 89 |
Other current liabilities |  | 12 |  |  | 16,613 |  |  |  | 17,507 |  |  |  | 241 |
Provisions |  | 12 |  |  | 796 |  |  |  | 772 |  |  |  | 11 |
|  |  |  |  | 207,295 |  |  |  | 209,563 |  |  |  | 2,888 |
Liabilities directly associated with assets held for sale |  |  |  |  | 6,212 |  |  |  | — |  |  |  | — |
Total current liabilities |  |  |  |  | 213,507 |  |  |  | 209,563 |  |  |  | 2,888 |
TOTAL LIABILITIES |  |  |  |  | 275,294 |  |  |  | 278,600 |  |  |  | 3,840 |
TOTAL EQUITY AND LIABILITIES |  |  |  |  | 760,640 |  |  |  | 801,914 |  |  |  | 11,054 |

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

As per our report of even date attached |  | For and on behalf of the Board of Directors |  |
for Deloitte Haskins & Sells LLP |  | Azim H Premji |  | N Vaghul |  | Abidali Neemuchwala
Chartered Accountants |  | Executive Chairman |  | Director |  | Chief Executive Officer
Firm’s Registration No: 117366W/W - 100018 |  | & Managing Director |  |  |  | & Executive Director
Vikas Bagaria |  | Jatin Pravinchandra Dalal |  |  |  | M Sanaulla Khan
Partner |  | Chief Financial Officer |  |  |  | Company Secretary
Membership No. 60408 |  |  |  |  |  |
Bengaluru |  |  |  |  |  |
October 24, 2018 |  |  |  |  |  |

2

WIPRO LIMITED AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENT OF INCOME

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

|  |  |  | Three months ended September 30, |  |  | Six months ended September 30, |
|  | Notes |  | 2017 |  |  | 2018 |  |  | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2018 |
|  |  |  |  |  |  |  |  |  | Convenience translation into US dollar in millions (unaudited) Refer Note 2(iii) |  |  |  |  |  |  |  |  | Convenience translation into US dollar in millions (unaudited) Refer Note 2(iii) |
Gross Revenues |  | 17 |  |  | 134,234 |  |  |  | 145,410 |  |  |  | 2,005 |  |  |  | 270,495 |  |  |  | 285,187 |  |  |  | 3,931 |
Cost of revenues |  | 18 |  |  | (94,694 | ) |  |  | (101,770 | ) |  |  | (1,403 | ) |  |  | (191,805 | ) |  |  | (202,120 | ) |  |  | (2,786 | )
Gross profit |  |  |  |  | 39,540 |  |  |  | 43,640 |  |  |  | 602 |  |  |  | 78,690 |  |  |  | 83,067 |  |  |  | 1,145 |
Selling and marketing expenses |  | 18 |  |  | (9,867 | ) |  |  | (10,814 | ) |  |  | (149 | ) |  |  | (20,013 | ) |  |  | (21,627 | ) |  |  | (298 | )
General and administrative expenses |  | 18 |  |  | (7,085 | ) |  |  | (13,696 | ) |  |  | (189 | ) |  |  | (14,349 | ) |  |  | (22,304 | ) |  |  | (307 | )
Foreign exchange gains/(losses), net |  | 20 |  |  | 453 |  |  |  | 1,217 |  |  |  | 17 |  |  |  | 806 |  |  |  | 1,988 |  |  |  | 27 |
Other operating income |  | 27 |  |  | — |  |  |  | 269 |  |  |  | 4 |  |  |  | — |  |  |  | 2,798 |  |  |  | 39 |
Results from operating activities |  |  |  |  | 23,041 |  |  |  | 20,616 |  |  |  | 285 |  |  |  | 45,134 |  |  |  | 43,922 |  |  |  | 606 |
Finance expenses |  | 19 |  |  | (1,434 | ) |  |  | (1,569 | ) |  |  | (22 | ) |  |  | (3,035 | ) |  |  | (3,218 | ) |  |  | (44 | )
Finance and other income |  | 20 |  |  | 6,709 |  |  |  | 5,136 |  |  |  | 71 |  |  |  | 13,036 |  |  |  | 10,333 |  |  |  | 142 |
Share of profit /(loss) of equity accounted investee |  | 7 |  |  | 5 |  |  |  | 20 |  |  |  | — |  |  |  | 4 |  |  |  | (33 | ) |  |  | — |
Profit before tax |  |  |  |  | 28,321 |  |  |  | 24,203 |  |  |  | 334 |  |  |  | 55,139 |  |  |  | 51,004 |  |  |  | 704 |
Income tax expense |  | 16 |  |  | (6,426 | ) |  |  | (5,347 | ) |  |  | (74 | ) |  |  | (12,420 | ) |  |  | (11,212 | ) |  |  | (155 | )
Profit for the period |  |  |  |  | 21,895 |  |  |  | 18,856 |  |  |  | 260 |  |  |  | 42,719 |  |  |  | 39,792 |  |  |  | 549 |
Profit attributable to: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity holders of the Company |  |  |  |  | 21,917 |  |  |  | 18,889 |  |  |  | 260 |  |  |  | 42,682 |  |  |  | 40,095 |  |  |  | 553 |
Non-controlling interest |  |  |  |  | (22 | ) |  |  | (33 | ) |  |  | — |  |  |  | 37 |  |  |  | (303 | ) |  |  | (4 | )
Profit for the period |  |  |  |  | 21,895 |  |  |  | 18,856 |  |  |  | 260 |  |  |  | 42,719 |  |  |  | 39,792 |  |  |  | 549 |
Earnings per equity share: |  | 21 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Attributable to equity share holders of the Company |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  |  |  |  | 4.52 |  |  |  | 4.19 |  |  |  | 0.06 |  |  |  | 8.81 |  |  |  | 8.90 |  |  |  | 0.12 |
Diluted |  |  |  |  | 4.52 |  |  |  | 4.19 |  |  |  | 0.06 |  |  |  | 8.80 |  |  |  | 8.89 |  |  |  | 0.12 |
Weighted average number of equity shares used in computing earnings per equity share |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  |  |  |  | 4,845,485,149 |  |  |  | 4,503,556,411 |  |  |  | 4,503,556,411 |  |  |  | 4,844,289,024 |  |  |  | 4,503,618,086 |  |  |  | 4,503,618,086 |
Diluted |  |  |  |  | 4,852,992,546 |  |  |  | 4,513,452,637 |  |  |  | 4,513,452,637 |  |  |  | 4,852,340,224 |  |  |  | 4,513,533,464 |  |  |  | 4,513,533,464 |

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

As per our report of even date attached |  | For and on behalf of the Board of Directors |  |
for Deloitte Haskins & Sells LLP |  | Azim H Premji |  | N Vaghul |  | Abidali Neemuchwala
Chartered Accountants |  | Executive Chairman |  | Director |  | Chief Executive Officer
Firm’s Registration No: 117366W/W - 100018 |  | & Managing Director |  |  |  | & Executive Director
Vikas Bagaria |  | Jatin Pravinchandra Dalal |  |  |  | M Sanaulla Khan
Partner |  | Chief Financial Officer |  |  |  | Company Secretary
Membership No. 60408 |  |  |  |  |  |
Bengaluru |  |  |  |  |  |
October 24, 2018 |  |  |  |  |  |

3

WIPRO LIMITED AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

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

|  |  |  | Three months ended September 30, |  |  | Six months ended September 30, |
|  | Notes |  | 2017 |  |  | 2018 |  |  | 2018 |  |  | 2017 |  |  | 2018 |  |  | 2018 |
|  |  |  |  |  |  |  |  |  | Convenience translation into US dollar in millions (unaudited) Refer Note 2(iii) |  |  |  |  |  |  |  |  | Convenience translation into US dollar in millions (unaudited) Refer Note 2(iii) |
Profit for the period |  |  |  |  | 21,895 |  |  |  | 18,856 |  |  |  | 260 |  |  |  | 42,719 |  |  |  | 39,792 |  |  |  | 549 |
Items that will not be reclassified to profit or loss in subsequent periods |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Defined benefit plan actuarial gains/(losses) |  |  |  |  | 53 |  |  |  | 121 |  |  |  | 2 |  |  |  | 371 |  |  |  | 455 |  |  |  | 6 |
Net change in fair value of financial instruments through OCI |  |  |  |  | 307 |  |  |  | (1,300 | ) |  |  | (18 | ) |  |  | 330 |  |  |  | (1,160 | ) |  |  | (16 | )
|  |  |  |  | 360 |  |  |  | (1,179 | ) |  |  | (16 | ) |  |  | 701 |  |  |  | (705 | ) |  |  | (10 | )
Items that may be reclassified to profit or loss in subsequent periods |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency translation differences |  | 15 |  |  | 2,098 |  |  |  | 6,074 |  |  |  | 84 |  |  |  | 2,797 |  |  |  | 8,894 |  |  |  | 123 |
Reclassification of foreign currency translation differences to profit and loss on sale of hosted data center services business |  | 15 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (4,131 | ) |  |  | (57 | )
Net change in time value of option contracts designated as cash flow hedges |  | 13,16 |  |  | (20 | ) |  |  | (140 | ) |  |  | (2 | ) |  |  | (13 | ) |  |  | (263 | ) |  |  | (4 | )
Net change in intrinsic value of option contracts designated as cash flow hedges |  | 13,16 |  |  | (111 | ) |  |  | (1,372 | ) |  |  | (19 | ) |  |  | (78 | ) |  |  | (1,565 | ) |  |  | (22 | )
Net change in fair value of forward contracts designated as cash flow hedges |  | 13,16 |  |  | (2,870 | ) |  |  | (754 | ) |  |  | (10 | ) |  |  | (4,992 | ) |  |  | (1,396 | ) |  |  | (19 | )
Net change in fair value of financial instruments through OCI |  | 7,16 |  |  | 117 |  |  |  | (402 | ) |  |  | (6 | ) |  |  | 510 |  |  |  | (1,242 | ) |  |  | (17 | )
|  |  |  |  | (786 | ) |  |  | 3,406 |  |  |  | 47 |  |  |  | (1,776 | ) |  |  | 297 |  |  |  | 4 |
Total other comprehensive income/ (loss), net of taxes |  |  |  |  | (426 | ) |  |  | 2,227 |  |  |  | 31 |  |  |  | (1,075 | ) |  |  | (408 | ) |  |  | (6 | )
Total comprehensive income for the period |  |  |  |  | 21,469 |  |  |  | 21,083 |  |  |  | 291 |  |  |  | 41,644 |  |  |  | 39,384 |  |  |  | 543 |
Profit attributable to: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity holders of the Company |  |  |  |  | 21,463 |  |  |  | 20,971 |  |  |  | 289 |  |  |  | 41,590 |  |  |  | 39,458 |  |  |  | 544 |
Non-controlling interest |  |  |  |  | 6 |  |  |  | 112 |  |  |  | 2 |  |  |  | 54 |  |  |  | (74 | ) |  |  | (1 | )
|  |  |  |  | 21,469 |  |  |  | 21,083 |  |  |  | 291 |  |  |  | 41,644 |  |  |  | 39,384 |  |  |  | 543 |

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

As per our report of even date attached |  | For and on behalf of the Board of Directors |  |
for Deloitte Haskins & Sells LLP |  | Azim H Premji |  | N Vaghul |  | Abidali Neemuchwala
Chartered Accountants |  | Executive Chairman |  | Director |  | Chief Executive Officer
Firm’s Registration No: 117366W/W - 100018 |  | & Managing Director |  |  |  | & Executive Director
Vikas Bagaria |  | Jatin Pravinchandra Dalal |  |  |  | M Sanaulla Khan
Partner |  | Chief Financial Officer |  |  |  | Company Secretary
Membership No. 60408 |  |  |  |  |  |
Bengaluru |  |  |  |  |  |
October 24, 2018 |  |  |  |  |  |

4

WIPRO LIMITED AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGE IN EQUITY

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

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Other components of equity |  |  |  |  |  |  |  |  |  |
Particulars |  | No. of Shares* |  |  | Share capital, fully paid- up |  |  | Share premium |  |  | Retained earnings |  |  | Share based payment reserve |  |  | Foreign currency translation reserve |  |  | Cash flow hedging reserve |  |  | Other reserves |  |  | Equity attributable to the equity holders of the Company |  |  | Non-controlling interest |  |  | Total equity |
As at April 1, 2017 |  |  | 2,430,900,565 |  |  |  | 4,861 |  |  |  | 469 |  |  |  | 490,930 |  |  |  | 3,555 |  |  |  | 13,107 |  |  |  | 5,906 |  |  |  | 1,476 |  |  |  | 520,304 |  |  |  | 2,391 |  |  |  | 522,695 |
Total comprehensive income for the period |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Profit for the period |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 42,682 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 42,682 |  |  |  | 37 |  |  |  | 42,719 |
Other comprehensive income |  |  | — |  |  |  | — |  |  |  |  |  |  |  | — |  |  |  | — |  |  |  | 2,780 |  |  |  | (5,083 | ) |  |  | 1,211 |  |  |  | (1,092 | ) |  |  | 17 |  |  |  | (1,075 | )
Total comprehensive income for the period |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 42,682 |  |  |  | — |  |  |  | 2,780 |  |  |  | (5,083 | ) |  |  | 1,211 |  |  |  | 41,590 |  |  |  | 54 |  |  |  | 41,644 |
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 |  |  | 2,715,879 |  |  |  | 6 |  |  |  | 1,762 |  |  |  | — |  |  |  | (1,746 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 22 |  |  |  | — |  |  |  | 22 |
Bonus issue of equity shares |  |  | 2,433,074,327 |  |  |  | 4,866 |  |  |  | — |  |  |  | (4,866 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Issue of shares by controlled trust on exercise of options |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 743 |  |  |  | (743 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Compensation cost related to employee share based payment |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 7 |  |  |  | 527 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 534 |  |  |  | — |  |  |  | 534 |
Total transactions with owners of the Company |  |  | 2,435,790,206 |  |  |  | 4,872 |  |  |  | 1,762 |  |  |  | (4,116 | ) |  |  | (1,962 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 556 |  |  |  | — |  |  |  | 556 |
As at September 30, 2017 |  |  | 4,866,690,771 |  |  |  | 9,733 |  |  |  | 2,231 |  |  |  | 529,496 |  |  |  | 1,593 |  |  |  | 15,887 |  |  |  | 823 |  |  |  | 2,687 |  |  |  | 562,450 |  |  |  | 2,445 |  |  |  | 564,895 |

5

WIPRO LIMITED AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGE IN EQUITY

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

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Other components of equity |  |  |  |  |  |  |  |  |  |
Particulars |  | No. of Shares* |  |  | Share capital, fully paid- up |  |  | Share premium |  |  | Retained earnings |  |  | Share based payment reserve |  |  | Foreign currency translation reserve |  |  | Cash flow hedging reserve |  |  | Other reserves |  |  | Equity attributable to the equity holders of the Company |  |  | Non-controlling interest |  |  | Total equity |
As at April 1, 2018 |  |  | 4,523,784,491 |  |  |  | 9,048 |  |  |  | 800 |  |  |  | 453,265 |  |  |  | 1,772 |  |  |  | 16,618 |  |  |  | (114 | ) |  |  | 1,547 |  |  |  | 482,936 |  |  |  | 2,410 |  |  |  | 485,346 |
Adjustment on adoption of IFRS 15 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (2,279 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (2,279 | ) |  |  | — |  |  |  | (2,279 | )
Adjusted balances as at April 1, 2018 |  |  | 4,523,784,491 |  |  |  | 9,048 |  |  |  | 800 |  |  |  | 450,986 |  |  |  | 1,772 |  |  |  | 16,618 |  |  |  | (114 | ) |  |  | 1,547 |  |  |  | 480,657 |  |  |  | 2,410 |  |  |  | 483,067 |
Total comprehensive income for the period |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Profit for the period |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 40,095 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 40,095 |  |  |  | (303 | ) |  |  | 39,792 |
Other comprehensive income |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 4,534 |  |  |  | (3,224 | ) |  |  | (1,947 | ) |  |  | (637 | ) |  |  | 229 |  |  |  | (408 | )
Total comprehensive income for the period |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 40,095 |  |  |  | — |  |  |  | 4,534 |  |  |  | (3,224 | ) |  |  | (1,947 | ) |  |  | 39,458 |  |  |  | (74 | ) |  |  | 39,384 |
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 |  |  | 295,032 |  |  |  | ^ |  |  |  | 79 |  |  |  | — |  |  |  | (79 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Issue of shares by controlled trust on exercise of options |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 317 |  |  |  | (317 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Loss of control in subsidiary |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (52 | ) |  |  | (52 | )
Infusion of capital |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 28 |  |  |  | 28 |
Compensation cost related to employee share based payment |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3 |  |  |  | 884 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 887 |  |  |  | — |  |  |  | 887 |
Total transactions with owners of the Company |  |  | 295,032 |  |  |  | — |  |  |  | 79 |  |  |  | 320 |  |  |  | 488 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 887 |  |  |  | (24 | ) |  |  | 863 |
As at September 30, 2018 |  |  | 4,524,079,523 |  |  |  | 9,048 |  |  |  | 879 |  |  |  | 491,401 |  |  |  | 2,260 |  |  |  | 21,152 |  |  |  | (3,338 | ) |  |  | (400 | ) |  |  | 521,002 |  |  |  | 2,312 |  |  |  | 523,314 |
Convenience translation into US dollar in millions (unaudited) Refer Note 2(iii) |  |  |  |  |  |  | 125 |  |  |  | 12 |  |  |  | 6,774 |  |  |  | 31 |  |  |  | 292 |  |  |  | (46 | ) |  |  | (6 | ) |  |  | 7,182 |  |  |  | 32 |  |  |  | 7,214 |

* | Includes 24,966,985 and 21,599,198 treasury shares held as at September 30, 2017 and 2018, respectively by a controlled trust.

| 1,498,018 shares have been transferred by the controlled trust to eligible employees on exercise of options during the period ended September 30, 2018

^ | Value is less than ₹ 1

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

As per our report of even date attached |  | For and on behalf of the Board of Directors |  |
for Deloitte Haskins & Sells LLP |  | Azim H Premji |  | N Vaghul |  | Abidali Neemuchwala
Chartered Accountants |  | Executive Chairman |  | Director |  | Chief Executive Officer
Firm’s Registration No: 117366W/W - 100018 |  | & Managing Director |  |  |  | & Executive Director
Vikas Bagaria |  | Jatin Pravinchandra Dalal |  |  |  | M Sanaulla Khan
Partner |  | Chief Financial Officer |  |  |  | Company Secretary
Membership No. 60408 |  |  |  |  |  |
Bengaluru |  |  |  |  |  |
October 24, 2018 |  |  |  |  |  |

6

WIPRO LIMITED AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASHFLOWS

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

|  | Six months ended September 30, |
|  | 2017 |  |  | 2018 |  |  | 2018 |
|  |  |  |  |  |  |  | Convenience translation into US dollar in millions (unaudited) Refer Note 2(iii) |
Cash flows from operating activities: |  |  |  |  |  |  |  |  |  |  |  |
Profit for the period |  |  | 42,719 |  |  |  | 39,792 |  |  |  | 549 |
Adjustments to reconcile profit for the period to net cash generated from operating activities: |  |  |  |  |  |  |  |  |  |  |  |
(Gain)/ loss on sale of property, plant and equipment and intangible assets, net |  |  | (163 | ) |  |  | (51 | ) |  |  | (1 | )
Depreciation, amortization and impairment |  |  | 10,143 |  |  |  | 8,706 |  |  |  | 120 |
Unrealized exchange loss, net |  |  | 4,152 |  |  |  | 1,741 |  |  |  | 24 |
Share based compensation expense |  |  | 527 |  |  |  | 884 |  |  |  | 12 |
Share of (profits)/ loss of equity accounted investee |  |  | — |  |  |  | 33 |  |  |  | — |
Income tax expense |  |  | 12,420 |  |  |  | 11,212 |  |  |  | 155 |
Dividend, gain from investments and interest (income)/expenses, net |  |  | (11,456 | ) |  |  | (8,038 | ) |  |  | (111 | )
Gain from sale of hosted data centre services business and loss of control in subsidiary |  |  | — |  |  |  | (2,798 | ) |  |  | (39 | )
Other non-cash items |  |  | (201 | ) |  |  | — |  |  |  | — |
Changes in operating assets and liabilities; net of effects from acquisitions |  |  |  |  |  |  |  |  |  |  |  |
Trade receivables |  |  | (4,404 | ) |  |  | (2,766 | ) |  |  | (38 | )
Unbilled revenue |  |  | (33 | ) |  |  | (3,928 | ) |  |  | (54 | )
Inventories |  |  | 459 |  |  |  | (645 | ) |  |  | (9 | )
Other assets |  |  | 520 |  |  |  | (6,708 | ) |  |  | (92 | )
Trade payables, accrued expenses, other liabilities and provisions |  |  | 4,234 |  |  |  | 14,800 |  |  |  | 204 |
Unearned revenue |  |  | (194 | ) |  |  | 6,031 |  |  |  | 83 |
Cash generated from operating activities before taxes |  |  | 58,723 |  |  |  | 58,265 |  |  |  | 803 |
Income taxes paid, net |  |  | (11,824 | ) |  |  | (10,869 | ) |  |  | (150 | )
Net cash generated from operating activities |  |  | 46,899 |  |  |  | 47,396 |  |  |  | 653 |
Cash flows from investing activities: |  |  |  |  |  |  |  |  |  |  |  |
Purchase of property, plant and equipment |  |  | (9,622 | ) |  |  | (10,592 | ) |  |  | (146 | )
Proceeds from sale of property, plant and equipment |  |  | 689 |  |  |  | 1,110 |  |  |  | 15 |
Purchase of investments |  |  | (400,887 | ) |  |  | (406,594 | ) |  |  | (5,605 | )
Proceeds from sale of investments |  |  | 362,041 |  |  |  | 400,989 |  |  |  | 5,528 |
Proceeds from sale of hosted data centre services business and loss of control in subsidiary, net of related expenses and cash |  |  | — |  |  |  | 25,834 |  |  |  | 356 |
Payment for business acquisitions including deposits and escrow, net of cash acquired |  |  | (6,132 | ) |  |  | — |  |  |  | — |
Interest received |  |  | 7,934 |  |  |  | 11,314 |  |  |  | 156 |
Dividend received |  |  | 319 |  |  |  | 185 |  |  |  | 3 |
Net cash (used)/ generated in investing activities |  |  | (45,658 | ) |  |  | 22,246 |  |  |  | 307 |
Cash flows from financing activities: |  |  |  |  |  |  |  |  |  |  |  |
Proceeds from issuance of equity shares/shares pending allotment |  |  | 22 |  |  |  | ^ |  |  |  | ^ |
Repayment of loans and borrowings |  |  | (69,887 | ) |  |  | (56,988 | ) |  |  | (786 | )
Proceeds from loans and borrowings |  |  | 70,388 |  |  |  | 26,691 |  |  |  | 368 |
Payment for deferred contingent consideration in respect of business combination |  |  | (66 | ) |  |  | (265 | ) |  |  | (4 | )
Interest paid on loans and borrowings |  |  | (1,454 | ) |  |  | (2,434 | ) |  |  | (34 | )
Net cash used in financing activities |  |  | (997 | ) |  |  | (32,996 | ) |  |  | (456 | )
Net increase in cash and cash equivalents during the period |  |  | 244 |  |  |  | 36,646 |  |  |  | 504 |
Effect of exchange rate changes on cash and cash equivalents |  |  | 253 |  |  |  | 2,082 |  |  |  | 29 |
Cash and cash equivalents at the beginning of the period |  |  | 50,718 |  |  |  | 40,926 |  |  |  | 564 |
Cash and cash equivalents at the end of the period (Note 9) |  |  | 51,215 |  |  |  | 79,654 |  |  |  | 1,097 |

^ | Value is less than ₹ 1

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

As per our report of even date attached |  | For and on behalf of the Board of Directors |  |
for Deloitte Haskins & Sells LLP |  | Azim H Premji |  | N Vaghul |  | Abidali Neemuchwala
Chartered Accountants |  | Executive Chairman |  | Director |  | Chief Executive Officer
Firm’s Registration No: 117366W/W - 100018 |  | & Managing Director |  |  |  | & Executive Director
Vikas Bagaria |  | Jatin Pravinchandra Dalal |  |  |  | M Sanaulla Khan
Partner |  | Chief Financial Officer |  |  |  | Company Secretary
Membership No. 60408 |  |  |  |  |  |
Bengaluru |  |  |  |  |  |
October 24, 2018 |  |  |  |  |  |

7

WIPRO LIMITED AND SUBSIDIARIES

NOTES TO THE INTERIM CONDENSED CONSOLIDATED 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 and controlled trusts (collectively, “the Company” or the “Group”) is a global information technology (IT), consulting and business process services (BPS) company.

Wipro is a public limited company incorporated and domiciled in India. The address of its registered office is Wipro Limited, Doddakannelli, Sarjapur Road, Bangalore – 560 035, Karnataka, India. Wipro has its primary listing with BSE Ltd. (Bombay Stock Exchange) and National Stock Exchange of India Ltd. The Company’s American Depository Shares representing equity shares are also listed on the New York Stock Exchange.

These interim condensed consolidated financial statements were authorized for issue by the Company’s Board of Directors on October 24, 2018.

2. Basis of preparation of interim condensed consolidated financial statements

(i) Statement of compliance and basis of preparation

These interim condensed consolidated financial statements have been prepared in accordance with International Financial Reporting

Standards (IAS) 34, “Interim Financial Reporting” 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, 2018. These interim condensed consolidated financial statements do not include all the information required for full annual financial statements prepared in accordance with IFRS.

The interim condensed consolidated 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 interim condensed consolidated financial statements except for the adoption of new accounting standards, amendments and interpretations effective as of April 1, 2018, as disclosed in note 3 below.

All amounts included in the interim condensed consolidated 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.

(ii) Basis of measurement

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

| a. | Derivative financial instruments;

| b. | Financial instruments classified as fair value through other comprehensive income or fair value through profit or loss;

| c. | The defined benefit asset/ (liability) is recognized as the present value of defined benefit obligation less fair value of plan assets; and

| d. | Contingent consideration.

(iii) Convenience translation (unaudited)

The accompanying interim condensed consolidated financial statements have been prepared and reported in Indian rupees, the functional currency of the Parent Company. Solely for the convenience of the readers, the interim condensed consolidated financial statements as at and for the three and six months ended September 30, 2018, have been translated into United States dollars at the certified foreign exchange rate of US$1 = ₹ 72.54 as published by Federal Reserve Board of Governors on September 30, 2018. 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. Due to rounding off, the translated numbers presented throughout the document may not add up precisely to the totals.

8

(iv) Use of estimates and judgment

The preparation of the interim condensed consolidated 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 interim condensed consolidated financial statements are included in the following notes:

| a) | Revenue recognition: The Company applies judgement to determine whether each product or services promised to a customer are capable of being distinct, and are distinct in the context of the contract, if not, the promised product or services are combined and accounted as a single performance obligation. The Company allocates the arrangement consideration to separately identifiable performance obligation deliverables based on their relative stand-alone selling price. In cases where the Company is unable to determine the stand-alone selling price the company uses expected cost plus margin approach in estimating the stand-alone selling price. 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. Volume discounts are recorded as a reduction of revenue. When the amount of discount varies with the levels of revenue, volume discount is recorded based on estimate of future revenue from the customer

| b) | Impairment testing: Goodwill and intangible assets with infinite useful life recognized on business combination are tested for impairment at least annually and when events occur or changes in circumstances indicate that the recoverable amount of the asset or the cash generating unit to which these pertain is less than the carrying value. The recoverable amount of the asset or the cash generating units is higher of value-in-use and fair value less cost of disposal. The calculation of value in use of a cash generating unit involves use of significant estimates and assumptions which includes turnover, 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 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 (including useful life estimates) and liabilities acquired, 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.

| f) | Defined benefit plans and compensated absences: The cost of the defined benefit plans, compensated absences and the present value of the defined benefit obligations are based on actuarial valuation using the projected unit credit method. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

9

| g) | Expected credit losses on financial assets: The impairment provisions of financial assets are based on assumptions about risk of default and expected timing of collection. The Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on the Company’s history of collections, customer’s credit-worthiness, existing market conditions as well as forward looking estimates at the end of each reporting period.

| h) | Measurement of fair value of non-marketable equity investments: These instruments 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.

| i) | Useful lives of property, plant and equipment: The Company depreciates property, plant and equipment on a straight-line basis over estimated useful lives of the assets. The charge in respect of periodic depreciation is derived based on an estimate of an asset’s expected useful life and the expected residual value at the end of its life. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technology. The estimated useful life is reviewed at least annually.

| j) | Other estimates: The share based compensation expense is determined based on the Company’s estimate of equity instruments that will eventually vest. Fair valuation of derivative hedging instruments designated as cash flow hedges involves significant estimates relating to the occurrence of forecast transaction.

3. Significant accounting policies

Please refer to the Company’s Annual report for the year ended March 31, 2018, for a discussion of the Company’s other critical accounting policies.

On April 1, 2018, we adopted IFRS 15, “Revenue from Contracts with Customers”. Accordingly, the policy for Revenue as presented in the Company’s Annual Report is amended as under:

Revenue

The Company derives revenue primarily from software development, maintenance of software/hardware and related services, business process services, sale of IT and other products.

Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. To recognize revenues, we apply the following five step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenues when a performance obligation is satisfied.

At contract inception, the Company assesses its promise to transfer products or services to a customer to identify separate performance obligations. The Company applies judgement to determine whether each product or services promised to a customer are capable of being distinct, and are distinct in the context of the contract, if not, the promised product or services are combined and accounted as a single performance obligation. The Company allocates the arrangement consideration to separately identifiable performance obligation based on their relative stand-alone selling price or residual method. Stand-alone selling prices are determined based on sale prices for the components when it is regularly sold separately, in cases where the Company is unable to determine the stand-alone selling price the Company uses third-party prices for similar deliverables or the company uses expected cost plus margin approach in estimating the stand-alone selling price.

For performance obligations where control is transferred over time, revenues are recognized by measuring progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the promised products or services to be provided.

10

The method for recognizing revenues and costs depends on the nature of the services rendered:

A. Time and materials contracts

Revenues and costs relating to time and materials, transaction-based or volume-based contracts are recognized as the related services are rendered.

B. Fixed-price development contracts

Revenues from fixed-price contracts, including software development, and integration contracts, where the performance obligations are satisfied over time, are recognized using the “percentage-of-completion” method. Percentage of completion is determined based on project costs incurred to date as a percentage of total estimated project costs required to complete the project. The cost expended (or input) method has been used to measure progress towards completion as there is a direct relationship between input and productivity. If the Company is not able to reasonably measure the progress of completion, revenue is recognized only to the extent of costs incurred for which recoverability is probable. When total cost estimates exceed revenues in an arrangement, the estimated losses are recognized in the consolidated statement of income in the period in which such losses become probable based on the current contract estimates as an onerous contract provision.

A contract asset is a right to consideration that is conditional upon factors other than the passage of time. Contract assets primarily relate to unbilled amounts on fixed-price development contracts and are classified as non-financial asset as the contractual right to consideration is dependent on completion of contractual milestones.

A contract liability is an entity’s obligation to transfer goods or services to a customer for which the entity has received consideration (or the amount is due) from the customer.

Unbilled revenue on other than fixed price development contracts are classified as a financial asset where the right to consideration is unconditional upon passage of time

C. Maintenance contracts

Revenues related to fixed-price maintenance, testing and business process services are recognized based on our right to invoice for services performed for contracts in which the invoicing is representative of the value being delivered. If our invoicing is not consistent with value delivered, revenues are recognized as the service is performed using the percentage of completion method. When services are performed through an indefinite number of repetitive acts over a specified period, revenue is recognized on a straight-line basis over the specified period unless some other method better represents the stage of completion.

In certain projects, a fixed quantum of service or output units is agreed at a fixed price for a fixed term. In such contracts, revenue is recognized with respect to the actual output achieved till date as a percentage of total contractual output. Any residual service unutilized by the customer is recognized as revenue on completion of the term.

D. Products

Revenue on product sales are recognized when the customer obtains control of the specified asset.

E. Others

| • |  | Any change in scope or price is considered as a contract modification. The Company accounts for modifications to existing contracts by assessing whether the services added are distinct and whether the pricing is at the standalone selling price. Services added that are not distinct are accounted for on a cumulative catch up basis, while those that are distinct are accounted for prospectively, either as a separate contract if the additional services are priced at the standalone selling price, or as a termination of the existing contract and creation of a new contract if not priced at the standalone selling price.

| • |  | The Company accounts for variable considerations like, volume discounts, rebates and pricing incentives to customers as reduction of revenue on a systematic and rational basis over the period of the contract. The Company estimates an amount of such variable consideration using expected value method or the single most likely amount in a range of possible consideration depending on which method better predicts the amount of consideration to which we may be entitled.

| • |  | Revenues are shown net of allowances/ returns sales tax, value added tax, goods and services tax and applicable discounts and allowances. Revenue includes excise duty.

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

11

| • |  | Incremental costs that relate directly to a contract and incurred in securing a contract with a customer are recognized as an asset when the Company expects to recover these costs and amortized over the contract term.

| • |  | The Company recognizes contract fulfilment cost as an asset if those costs specifically relate to a contract or to an anticipated contract, the costs generate or enhance resources that will be used in satisfying performance obligations in future; and the costs are expected to be recovered. The asset so recognized is amortized on a systematic basis consistent with the transfer of goods or services to customer to which the asset relates.

| • |  | The Company assesses the timing of the transfer of goods or services to the customer as compared to the timing of payments to determine whether a significant financing component exists. As a practical expedient, the Company does not assess the existence of a significant financing component when the difference between payment and transfer of deliverables is a year or less. If the difference in timing arises for reasons other than the provision of finance to either the customer or us, no financing component is deemed to exist.

| • |  | The Company may enter into arrangements with third party suppliers to resell products or services. In such cases, we evaluate whether we are the principal (i.e. report revenues on a gross basis) or agent (i.e. report revenues on a net basis). In doing so, we first evaluate whether we control the good or service before it is transferred to the customer. If we control the good or service before it is transferred to the customer, we are the principal; if not, we are the agent.

New Accounting standards adopted by the Company:

The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Company’s annual consolidated financial statements for the year ended March 31, 2018, except for the adoption of amendments and interpretations effective as of April 1, 2018.

IFRS 15 – Revenue from Contracts with Customers.

On April 1, 2018, we adopted IFRS 15, “Revenue from Contracts with Customers” using the cumulative catch-up transition method applied to contracts that were not completed as of April 1, 2018. In accordance with the cumulative catch-up transition method, the comparatives have not been retrospectively adjusted.

The adoption of the new standard has resulted in a reduction of ₹ 2,279 in opening retained earnings, primarily relating to certain contract costs because these do not meet the criteria for recognition as costs to fulfil a contract.

On account of adoption of IFRS 15, unbilled revenues pertaining to fixed price development contracts of ₹ 18,573 as at September 30, 2018 has been considered as non-financial Contract assets, which are billable on completion milestones specified in the contracts.

Unbilled revenues ₹ 28,685, which are billable based on passage of time been classified as unbilled receivables.

The adoption of IFRS 15, did not have any material impact on the consolidated statement of income for three and six months ended September 30, 2018.

Disclosure on disaggregation of revenues and remaining performance obligations will be included in the annual financial statement for the year ending March 31, 2019.

IFRIC 22- Foreign currency transactions and Advance consideration

The Company has applied IFRIC 22 prospectively effective April 1, 2018. The effect on adoption of IFRIC 22 on the consolidated financial statements is insignificant.

New accounting standards not yet adopted:

Certain new standards, amendments to standards and interpretations are not yet effective for annual periods beginning after April 1, 2018, and have not been applied in preparing these interim condensed consolidated financial statements. New standards, amendments to standards and interpretations that could have potential impact on the consolidated financial statements of the Company are:

12

IFRS 16 – Leases

On January 13, 2016, the International Accounting Standards Board issued 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 recognized 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 does not plan to early adopt IFRS 16 and is currently assessing the impact of adopting IFRS 16 on the Company’s consolidated financial statements.

IFRIC 23 – Uncertainty over Income Tax treatments

On June 7, 2017, the International Accounting Standards Board issued IFRIC 23 which clarifies the accounting for uncertainties in income taxes. The interpretation is to be applied to the determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates, when there is uncertainty over income tax treatments under IAS 12. It outlines the following: (1) the entity has to use judgement, to determine whether each tax treatment should be considered separately or whether some can be considered together. The decision should be based on the approach which provides better predictions of the resolution of the uncertainty (2) entity has to consider the probability of the relevant taxation authority accepting the tax treatment and the determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates would depend upon the probability. The effective date for adoption of IFRIC 23 for annual periods beginning on or after January 1, 2019, though early adoption is permitted. The Company does not plan to early adopt IFRIC 23 and is currently assessing the impact of adopting IFRIC 23 on the Company’s consolidated financial statements.

Amendment to IAS 19 – Plan Amendment, Curtailment or Settlement

On 7 February 2018, the International Accounting Standard Board has issued amendments to IAS 19, ‘Employee Benefits’, in connection with accounting for plan amendments, curtailments and settlements requiring an entity to determine the current service costs and the net interest for the period after the remeasurement using the assumptions used for the remeasurement; and determine the net interest for the remaining period based on the remeasured net defined benefit liability or asset. These amendments are effective for annual reporting periods beginning on or after January 1, 2019, with early application permitted. The Company does not plan to early adopt and is currently assessing the impact of adopting amendment to IAS 19 on the Company’s consolidated financial statements.

Amendment to IAS 12 – Income Taxes

In December 2017, the International Accounting Standard Board had issued amendments to IAS 12 – Income Taxes. The amendments clarify that an entity shall recognize the income tax consequences of dividends on financial instruments classified as equity should be recognized according to where the entity originally recognized those past transactions or events that generated distributable profits were recognized. The effective date of these amendments is annual periods beginning on or after January 1, 2019, though earlier adoption is permitted. The Company does not plan to early adopt this amendment and is currently assessing the impact of these amendment on the consolidated financial statements.

13

4. Property, plant and equipment

|  | Land |  |  | Buildings |  |  | Plant and machinery * |  |  | Furniture fixtures and equipment |  |  | Vehicles |  |  | Total |
Gross carrying value: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As at April 1, 2017 |  | ₹ | 3,814 |  |  | ₹ | 27,581 |  |  | ₹ | 108,967 |  |  | ₹ | 15,748 |  |  | ₹ | 432 |  |  | ₹ | 156,542 |
Translation adjustment |  |  | 20 |  |  |  | 191 |  |  |  | 899 |  |  |  | 127 |  |  |  | 4 |  |  |  | 1,241 |
Additions/ adjustments |  |  | — |  |  |  | 712 |  |  |  | 4,971 |  |  |  | 955 |  |  |  | 977 |  |  |  | 7,615 |
Acquisition through business combinations |  |  | — |  |  |  | — |  |  |  | 4 |  |  |  | 3 |  |  |  | 1 |  |  |  | 8 |
Disposals/ adjustments |  |  | — |  |  |  | (79 | ) |  |  | (2,597 | ) |  |  | (405 | ) |  |  | (183 | ) |  |  | (3,264 | )
As at September 30, 2017 |  | ₹ | 3,834 |  |  | ₹ | 28,405 |  |  | ₹ | 112,244 |  |  | ₹ | 16,428 |  |  | ₹ | 1,231 |  |  | ₹ | 162,142 |
Accumulated depreciation/ impairment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As at April 1, 2017 |  |  | — |  |  | ₹ | 6,361 |  |  | ₹ | 77,005 |  |  | ₹ | 11,968 |  |  | ₹ | 365 |  |  | ₹ | 95,699 |
Translation adjustment |  |  | — |  |  |  | 39 |  |  |  | 530 |  |  |  | 67 |  |  |  | 1 |  |  |  | 637 |
Depreciation |  |  | — |  |  |  | 534 |  |  |  | 7,045 |  |  |  | 651 |  |  |  | 179 |  |  |  | 8,409 |
Disposals/ adjustments |  |  | — |  |  |  | (27 | ) |  |  | (2,199 | ) |  |  | (331 | ) |  |  | (181 | ) |  |  | (2,738 | )
As at September 30, 2017 |  | ₹ | — |  |  | ₹ | 6,907 |  |  | ₹ | 82,381 |  |  | ₹ | 12,355 |  |  | ₹ | 364 |  |  | ₹ | 102,007 |
Capital work-in-progress |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | ₹ | 11,668 |
Net carrying value including Capital work-in-progress as at September 30, 2017 |  |  |  |  |  |  |  |  |  |  | ₹ | 71,803 |
Gross carrying value: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As at April 1, 2017 |  | ₹ | 3,814 |  |  | ₹ | 27,581 |  |  | ₹ | 108,967 |  |  | ₹ | 15,748 |  |  | ₹ | 432 |  |  | ₹ | 156,542 |
Translation adjustment |  |  | 28 |  |  |  | 265 |  |  |  | 904 |  |  |  | 188 |  |  |  | 2 |  |  |  | 1,387 |
Additions/ adjustments |  |  | 2 |  |  |  | 1,197 |  |  |  | 11,767 |  |  |  | 1,776 |  |  |  | 1,003 |  |  |  | 15,745 |
Acquisition through business combinations |  |  | — |  |  |  | 13 |  |  |  | 4 |  |  |  | 11 |  |  |  | 1 |  |  |  | 29 |
Disposals/ adjustments |  |  | — |  |  |  | (190 | ) |  |  | (7,302 | ) |  |  | (872 | ) |  |  | (294 | ) |  |  | (8,658 | )
Assets reclassified as held for sale |  |  | (207 | ) |  |  | (3,721 | ) |  |  | (27,118 | ) |  |  | (1,079 | ) |  |  | (5 | ) |  |  | (32,130 | )
As at March 31, 2018 |  | ₹ | 3,637 |  |  | ₹ | 25,145 |  |  | ₹ | 87,222 |  |  | ₹ | 15,772 |  |  | ₹ | 1,139 |  |  | ₹ | 132,915 |
Accumulated depreciation/ impairment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As at April 1, 2017 |  |  | — |  |  |  | 6,361 |  |  |  | 77,005 |  |  |  | 11,968 |  |  |  | 365 |  |  | ₹ | 95,699 |
Translation adjustment |  |  | — |  |  |  | 49 |  |  |  | 509 |  |  |  | 104 |  |  |  | — |  |  |  | 662 |
Depreciation |  |  | — |  |  |  | 1,023 |  |  |  | 14,078 |  |  |  | 1,381 |  |  |  | 387 |  |  |  | 16,869 |
Disposals/ adjustments |  |  | — |  |  |  | (70 | ) |  |  | (6,640 | ) |  |  | (758 | ) |  |  | (242 | ) |  |  | (7,710 | )
Assets reclassified as held for sale |  |  | — |  |  |  | (1,539 | ) |  |  | (19,627 | ) |  |  | (712 | ) |  |  | (4 | ) |  |  | (21,882 | )
As at March 31, 2018 |  | ₹ | — |  |  | ₹ | 5,824 |  |  | ₹ | 65,325 |  |  | ₹ | 11,983 |  |  | ₹ | 506 |  |  | ₹ | 83,638 |
Capital work-in-progress |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | ₹ | 15,680 |
Assets reclassified as held for sale |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (514 | )
Net carrying value including Capital work-in-progress as at March 31, 2018 |  |  |  |  |  |  |  |  |  |  | ₹ | 64,443 |
Gross carrying value: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As at April 1, 2018 |  | ₹ | 3,637 |  |  | ₹ | 25,145 |  |  | ₹ | 87,222 |  |  | ₹ | 15,772 |  |  | ₹ | 1,139 |  |  | ₹ | 132,915 |
Translation adjustment |  |  | 5 |  |  |  | 96 |  |  |  | 1,962 |  |  |  | 143 |  |  |  | (3 | ) |  |  | 2,203 |
Additions/ adjustments |  |  | 68 |  |  |  | 358 |  |  |  | 6,113 |  |  |  | 1,032 |  |  |  | 1 |  |  |  | 7,572 |
Disposals/ adjustments |  |  | — |  |  |  | (217 | ) |  |  | (2,225 | ) |  |  | (625 | ) |  |  | (48 | ) |  |  | (3,115 | )
As at September 30, 2018 |  | ₹ | 3,710 |  |  | ₹ | 25,382 |  |  | ₹ | 93,072 |  |  | ₹ | 16,322 |  |  | ₹ | 1,089 |  |  | ₹ | 139,575 |
Accumulated depreciation/ impairment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As at April 1, 2018 |  |  | — |  |  | ₹ | 5,824 |  |  | ₹ | 65,325 |  |  | ₹ | 11,983 |  |  | ₹ | 506 |  |  | ₹ | 83,638 |
Translation adjustment |  |  | — |  |  |  | 41 |  |  |  | 1,245 |  |  |  | 89 |  |  |  | (1 | ) |  |  | 1,374 |
Depreciation |  |  | — |  |  |  | 498 |  |  |  | 5,556 |  |  |  | 654 |  |  |  | 172 |  |  |  | 6,880 |
Disposals/ adjustments |  |  | — |  |  |  | (84 | ) |  |  | (1,536 | ) |  |  | (409 | ) |  |  | (27 | ) |  |  | (2,056 | )
As at September 30, 2018 |  | ₹ | — |  |  | ₹ | 6,279 |  |  | ₹ | 70,590 |  |  | ₹ | 12,317 |  |  | ₹ | 650 |  |  | ₹ | 89,836 |
Capital work-in-progress |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | ₹ | 18,631 |
Net carrying value including Capital work-in-progress as at September 30, 2018 |  |  |  |  |  |  |  |  |  |  | ₹ | 68,370 |

* | Includes computer equipment and software.

14

5. Goodwill and intangible assets

The movement in goodwill balance is given below:

|  | For the period ended |
|  | March 31, 2018 |  |  | September 30, 2018 |
Balance at the beginning of the year |  | ₹ | 125,796 |  |  | ₹ | 117,584 |
Translation adjustment |  |  | 2,970 |  |  |  | 10,442 |
Acquisition through business combination |  |  | 1,172 |  |  |  | — |
Assets reclassified as held for sale |  |  | (12,354 | ) |  |  | — |
Balance at the end of the period |  | ₹ | 117,584 |  |  | ₹ | 128,026 |

The movement in intangible assets is given below:

|  | Intangible assets |
|  | Customer related |  |  | Marketing related |  |  | Total |
Gross carrying value: |  |  |  |  |  |  |  |  |  |  |  |
As at April 1, 2017 |  | ₹ | 20,528 |  |  | ₹ | 6,279 |  |  | ₹ | 26,807 |
Translation adjustment |  |  | 626 |  |  |  | 98 |  |  |  | 724 |
Acquisition through business combinations |  |  | 5,434 |  |  |  | 169 |  |  |  | 5,603 |
As at September 30, 2017 |  | ₹ | 26,588 |  |  | ₹ | 6,546 |  |  | ₹ | 33,134 |
Accumulated amortization/ impairment: |  |  |  |  |  |  |  |  |  |  |  |
As at April 1, 2017 |  | ₹ | 9,264 |  |  | ₹ | 1,621 |  |  | ₹ | 10,885 |
Translation adjustment |  |  | 4 |  |  |  | 10 |  |  |  | 14 |
Amortization and impairment |  |  | 1,113 |  |  |  | 551 |  |  |  | 1,664 |
As at September 30, 2017 |  | ₹ | 10,381 |  |  | ₹ | 2,182 |  |  | ₹ | 12,563 |
Net carrying value as at September 30, 2017 |  | ₹ | 16,207 |  |  | ₹ | 4,364 |  |  | ₹ | 20,571 |
Gross carrying value: |  |  |  |  |  |  |  |  |  |  |  |
As at April 1, 2017 |  | ₹ | 20,528 |  |  | ₹ | 6,279 |  |  | ₹ | 26,807 |
Translation adjustment |  |  | 493 |  |  |  | 103 |  |  |  | 596 |
Acquisition through business combinations |  |  | 5,565 |  |  |  | 169 |  |  |  | 5,734 |
As at March 31, 2018 |  | ₹ | 26,586 |  |  | ₹ | 6,551 |  |  | ₹ | 33,137 |
Accumulated amortization/ impairment: |  |  |  |  |  |  |  |  |  |  |  |
As at April 1, 2017 |  | ₹ | 9,264 |  |  | ₹ | 1,621 |  |  | ₹ | 10,885 |
Translation adjustment |  |  | 14 |  |  |  | 11 |  |  |  | 25 |
Amortization and impairment * |  |  | 2,985 |  |  |  | 1,129 |  |  |  | 4,114 |
As at March 31, 2018 |  | ₹ | 12,263 |  |  | ₹ | 2,761 |  |  | ₹ | 15,024 |
Net carrying value as at March 31, 2018 |  | ₹ | 14,323 |  |  | ₹ | 3,790 |  |  | ₹ | 18,113 |
Gross carrying value: |  |  |  |  |  |  |  |  |  |  |  |
As at April 1, 2018 |  | ₹ | 26,586 |  |  | ₹ | 6,551 |  |  | ₹ | 33,137 |
Translation adjustment |  |  | 1,419 |  |  |  | 538 |  |  |  | 1,957 |
Acquisition through business combinations |  |  | — |  |  |  | — |  |  |  | — |
As at September 30, 2018 |  | ₹ | 28,005 |  |  | ₹ | 7,089 |  |  | ₹ | 35,094 |
Accumulated amortization/ impairment: |  |  |  |  |  |  |  |  |  |  |  |
As at April 1, 2018 |  | ₹ | 12,263 |  |  | ₹ | 2,761 |  |  | ₹ | 15,024 |
Translation adjustment |  |  | 126 |  |  |  | 184 |  |  |  | 310 |
Amortization and impairment |  |  | 1,165 |  |  |  | 568 |  |  |  | 1,733 |
As at September 30, 2018 |  | ₹ | 13,554 |  |  | ₹ | 3,513 |  |  | ₹ | 17,067 |
Net carrying value as at September 30, 2018 |  | ₹ | 14,451 |  |  | ₹ | 3,576 |  |  | ₹ | 18,027 |

* | Includes impairment charge on certain intangible assets recognized on acquisitions, amounting to ₹ 643 for the year ended March 31, 2018.

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

15

6. Business combination

Summary of material acquisitions during the year ended March 31, 2018 is given below:

During the year ended March 31, 2018, the Company has completed four business combinations (which both individually and in aggregate are not material) for a total consideration of ₹ 6,924 millions. These transactions include (a) an acquisition of IT service provider which is focused on Brazilian markets, (b) an acquisition of a design and business strategy consultancy firm based in United States, and (c) acquisition of intangible assets, assembled workforce and a multi-year service agreement which qualify as business combinations.

During the year ended March 31, 2018, the Company concluded the fair value adjustments of the assets acquired and liabilities assumed on acquisition.

The following table presents the provisional allocation of purchase price:

Description |  | Purchase price allocated |
Net assets |  | ₹ | 5 |
Customer related intangibles |  |  | 5,565 |
Other intangible assets |  |  | 169 |
Total |  | ₹ | 5,739 |
Goodwill |  |  | 1,185 |
Total purchase price |  | ₹ | 6,924 |

The goodwill of ₹ 1,185 comprises value of acquired workforce and expected synergies arising from the acquisition. The goodwill was allocated among the reportable operating segments and is partially deductible for U.S. federal income tax purpose.

Net assets acquired include ₹ 58 of cash and cash equivalents and trade receivables valued at ₹ 215.

7. Investments

Investments consist of the followings:

|  | As at |
|  | March 31, 2018 |  |  | September 30, 2018 |
Financial instruments at FVTPL |  |  |  |  |  |  |  |
Investments in liquid and short-term mutual funds |  | ₹ | 46,438 |  |  | ₹ | 30,200 |
Financial instruments at FVTOCI |  |  |  |  |  |  |  |
Equity instruments |  |  | 5,685 |  |  |  | 7,494 |
Commercial paper, Certificate of deposits and bonds |  |  | 176,234 |  |  |  | 212,662 |
Financial instruments at amortized cost |  |  |  |  |  |  |  |
Inter corporate and term deposits * |  |  | 28,405 |  |  |  | 5,953 |
|  | ₹ | 256,762 |  |  | ₹ | 256,309 |
Non-current |  |  | 7,668 |  |  |  | 7,494 |
Current |  |  | 249,094 |  |  |  | 248,815 |

* | These deposits earn a fixed rate of interest. Term deposits include deposits in lien with banks amounting to ₹ 448 (March 31, 2018: ₹ 453).

Investment in equity accounted investee

The Company has no material associates as at September 30, 2018.

8. Inventories

Inventories consist of the following:

|  | As at |
|  | March 31, 2018 |  |  | September 30, 2018 |
Stores and spare parts |  | ₹ | 769 |  |  | ₹ | 712 |
Finished goods and traded goods |  |  | 2,601 |  |  |  | 3,348 |
|  | ₹ | 3,370 |  |  | ₹ | 4,060 |

16

9. Cash and cash equivalents

Cash and cash equivalents as at March 31, 2018 and September 30, 2018 consists of cash and balance on deposit with banks. Cash and cash equivalents consists of the followings:

|  | As at |
|  | March 31, 2018 |  |  | September 30, 2018 |
Cash and bank balances |  | ₹ | 23,300 |  |  | ₹ | 56,158 |
Demand deposits with banks * |  |  | 21,625 |  |  |  | 23,660 |
|  | ₹ | 44,925 |  |  | ₹ | 79,818 |

* | These deposits can be withdrawn by the Company at any time without prior notice and without any penalty on the principal.

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

|  | Six months ended September 30, |
|  | 2017 |  |  | 2018 |
Cash and cash equivalents |  | ₹ | 51,412 |  |  | ₹ | 79,818 |
Bank overdrafts |  |  | (197 | ) |  |  | (164 | )
|  | ₹ | 51,215 |  |  | ₹ | 79,654 |

10. Other assets

|  | As at |
|  | March 31, 2018 |  |  | September 30, 2018 |
Non-current |  |  |  |  |  |  |  |
Financial asset |  |  |  |  |  |  |  |
Security deposits |  | ₹ | 1,197 |  |  | ₹ | 1,442 |
Other deposits |  |  | 250 |  |  |  | 339 |
Finance lease receivables |  |  | 2,739 |  |  |  | 2,337 |
|  | ₹ | 4,186 |  |  | ₹ | 4,118 |
Non-Financial asset |  |  |  |  |  |  |  |
Prepaid expenses including rentals for leasehold land |  | ₹ | 7,602 |  |  | ₹ | 7,060 |
Costs to obtain contract |  |  | 281 |  |  | ₹ | 4,319 |
Others |  |  | 4,187 |  |  |  | 4,730 |
Assets reclassified as held for sale |  |  | (530 | ) |  |  | — |
|  | ₹ | 11,540 |  |  | ₹ | 16,109 |
Other non-current assets |  | ₹ | 15,726 |  |  | ₹ | 20,227 |
Current |  |  |  |  |  |  |  |
Financial asset |  |  |  |  |  |  |  |
Security deposits |  | ₹ | 1,238 |  |  | ₹ | 1,067 |
Other deposits |  |  | 59 |  |  |  | 35 |
Due from officers and employees |  |  | 697 |  |  |  | 678 |
Finance lease receivables |  |  | 2,271 |  |  |  | 2,161 |
Others |  |  | 3,164 |  |  |  | 2,634 |
|  | ₹ | 7,429 |  |  | ₹ | 6,575 |
Non-Financial asset |  |  |  |  |  |  |  |
Prepaid expenses |  | ₹ | 14,407 |  |  | ₹ | 11,489 |
Due from officers and employees |  |  | 1,175 |  |  |  | 1,084 |
Advance to suppliers |  |  | 1,819 |  |  |  | 2,005 |
Deferred contract costs |  |  | 2,419 |  |  |  | — |
Balance with excise, customs and other authorities |  |  | 3,886 |  |  |  | 5,125 |
Costs to obtain contract |  |  | 792 |  |  |  | 799 |
Others |  |  | 50 |  |  |  | 73 |
Assets reclassified as held for sale |  |  | (1,381 | ) |  |  | — |
|  | ₹ | 23,167 |  |  | ₹ | 20,575 |
Other current assets |  | ₹ | 30,596 |  |  | ₹ | 27,150 |
Total |  | ₹ | 46,322 |  |  | ₹ | 47,377 |

17

11. Loans and borrowings

A summary of loans and borrowings is as follows:

|  | As at |
|  | March 31, 2018 |  |  | September 30, 2018 |
Borrowings from banks |  | ₹ | 119,689 |  |  | ₹ | 111,215 |
Bank overdrafts |  |  | 3,999 |  |  |  | 164 |
External commercial borrowings |  |  | 9,777 |  |  |  | — |
Obligations under finance leases |  |  | 5,442 |  |  |  | 3,032 |
Loans from institutions other than bank |  |  | 821 |  |  |  | 644 |
Liabilities directly associated with assets held for sale |  |  | (1,469 | ) |  |  | — |
|  | ₹ | 138,259 |  |  | ₹ | 115,055 |
Non-current |  |  | 45,268 |  |  |  | 52,329 |
Current |  |  | 92,991 |  |  |  | 62,726 |

12. Other liabilities and provisions

|  | As at |
|  | March 31, 2018 |  |  | September 30, 2018 |
Other liabilities |  |  |  |  |  |  |  |
Non-current |  |  |  |  |  |  |  |
Financial liabilities |  |  |  |  |  |  |  |
Deposits and others |  | ₹ | 7 |  |  | ₹ | — |
|  | ₹ | 7 |  |  | ₹ | — |
Non-Financial liabilities |  |  |  |  |  |  |  |
Employee benefits obligations |  | ₹ | 1,791 |  |  | ₹ | 2,167 |
Others |  |  | 2,440 |  |  |  | 2,521 |
Liabilities directly associated with assets held for sale |  |  | (8 | ) |  |  | — |
|  | ₹ | 4,223 |  |  | ₹ | 4,688 |
Other non-current liabilities |  | ₹ | 4,230 |  |  | ₹ | 4,688 |
Current |  |  |  |  |  |  |  |
Financial liabilities |  |  |  |  |  |  |  |
Deposits and others |  | ₹ | 1,050 |  |  | ₹ | 674 |
|  | ₹ | 1,050 |  |  | ₹ | 674 |
Non-Financial liabilities |  |  |  |  |  |  |  |
Statutory and other liabilities |  | ₹ | 4,263 |  |  | ₹ | 4,477 |
Employee benefits obligations |  |  | 8,537 |  |  |  | 9,905 |
Advance from customers |  |  | 1,901 |  |  |  | 1,222 |
Others |  |  | 1,139 |  |  |  | 1,229 |
Liabilities directly associated with assets held for sale |  |  | (277 | ) |  |  | — |
|  | ₹ | 15,563 |  |  | ₹ | 16,833 |
Other current liabilities |  | ₹ | 16,613 |  |  | ₹ | 17,507 |
Total |  | ₹ | 20,843 |  |  | ₹ | 22,195 |

|  | As at |
|  | March 31, 2018 |  |  | September 30, 2018 |
Provisions |  |  |  |  |  |  |  |
Non-current |  |  |  |  |  |  |  |
Provision for warranty |  | ₹ | 3 |  |  | ₹ | 2 |
|  | ₹ | 3 |  |  | ₹ | 2 |
Current |  |  |  |  |  |  |  |
Provision for warranty |  | ₹ | 290 |  |  | ₹ | 280 |
Others |  |  | 506 |  |  |  | 492 |
|  | ₹ | 796 |  |  | ₹ | 772 |
|  | ₹ | 799 |  |  | ₹ | 774 |

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

18

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.

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

|  | (in millions) |
|  | As at |
|  | March 31, 2018 |  |  | September 30, 2018 |
|  | Notional |  |  | Fair value |  |  | Notional |  |  | Fair value |
Designated derivatives instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sell : Forward contracts |  |  | USD |  |  |  | 904 |  |  | ₹ | 951 |  |  |  | USD |  |  |  | 426 |  |  | ₹ | (1,914 | )
|  |  | € |  |  |  | 134 |  |  | ₹ | (531 | ) |  |  | € |  |  |  | 40 |  |  | ₹ | (31 | )
|  |  | £ |  |  |  | 147 |  |  | ₹ | (667 | ) |  |  | £ |  |  |  | 67 |  |  | ₹ | (167 | )
|  |  | AUD |  |  |  | 77 |  |  | ₹ | 29 |  |  |  | AUD |  |  |  | 62 |  |  | ₹ | 75 |
Range forward options contracts |  |  | USD |  |  |  | 182 |  |  | ₹ | 5 |  |  |  | USD |  |  |  | 751 |  |  | ₹ | (2,552 | )
|  |  | £ |  |  |  | 13 |  |  | ₹ | 5 |  |  |  | £ |  |  |  | 82 |  |  | ₹ | 126 |
|  |  | € |  |  |  | 10 |  |  | ₹ | 2 |  |  |  | € |  |  |  | 106 |  |  | ₹ | 156 |
|  |  | AUD |  |  |  | — |  |  |  | — |  |  |  | AUD |  |  |  | 52 |  |  | ₹ | 3 |
Interest rate swaps |  |  | USD |  |  |  | 75 |  |  | ₹ | (7 | ) |  |  | USD |  |  |  | 75 |  |  | ₹ | 24 |
Non-designated derivatives instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sell : Forward contracts |  |  | USD |  |  |  | 939 |  |  | ₹ | (360 | ) |  |  | USD |  |  |  | 1,028 |  |  | ₹ | (1,299 | )
|  |  | € |  |  |  | 58 |  |  | ₹ | 6 |  |  |  | € |  |  |  | 39 |  |  | ₹ | 37 |
|  |  | £ |  |  |  | 95 |  |  | ₹ | (56 | ) |  |  | £ |  |  |  | 69 |  |  | ₹ | 8 |
|  |  | AUD |  |  |  | 77 |  |  | ₹ | 68 |  |  |  | AUD |  |  |  | 64 |  |  | ₹ | 19 |
|  |  | SGD |  |  |  | 6 |  |  | ₹ | (1 | ) |  |  | SGD |  |  |  | 11 |  |  | ₹ | 3 |
|  |  | ZAR |  |  |  | 132 |  |  | ₹ | (16 | ) |  |  | ZAR |  |  |  | 70 |  |  | ₹ | 24 |
|  |  | CAD |  |  |  | 14 |  |  | ₹ | 32 |  |  |  | CAD |  |  |  | 25 |  |  | ₹ | (1 | )
|  |  | SAR |  |  |  | 62 |  |  |  | ^ |  |  |  | SAR |  |  |  | 93 |  |  |  | ^ |
|  |  | AED |  |  |  | 8 |  |  |  | ^ |  |  |  | AED |  |  |  | 17 |  |  |  | ^ |
|  |  | PLN |  |  |  | 36 |  |  | ₹ | 12 |  |  |  | PLN |  |  |  | 57 |  |  | ₹ | 1 |
|  |  | CHF |  |  |  | 6 |  |  | ₹ | 3 |  |  |  | CHF |  |  |  | 12 |  |  | ₹ | 10 |
|  |  | QAR |  |  |  | 11 |  |  | ₹ | (3 | ) |  |  | QAR |  |  |  | 37 |  |  | ₹ | (13 | )
|  |  | TRY |  |  |  | 10 |  |  | ₹ | 8 |  |  |  | TRY |  |  |  | 18 |  |  | ₹ | 37 |
|  |  | MXN |  |  |  | 61 |  |  | ₹ | (6 | ) |  |  | MXN |  |  |  | — |  |  |  | — |
|  |  | NOK |  |  |  | 34 |  |  | ₹ | 3 |  |  |  | NOK |  |  |  | 31 |  |  |  | ^ |
|  |  | OMR |  |  |  | 3 |  |  | ₹ | (1 | ) |  |  | OMR |  |  |  | 2 |  |  | ₹ | (1 | )
|  |  | SEK |  |  |  | — |  |  |  | — |  |  |  | SEK |  |  |  | 20 |  |  |  | 1 |
Range forward options contracts |  |  | USD |  |  |  | 50 |  |  | ₹ | (6 | ) |  |  | USD |  |  |  | 187 |  |  | ₹ | (240 | )
|  |  | £ |  |  |  | 20 |  |  | ₹ | (2 | ) |  |  | £ |  |  |  | — |  |  |  | — |
|  |  | AUD |  |  |  | — |  |  |  | — |  |  |  | AUD |  |  |  | 10 |  |  | ₹ | (1 | )
|  |  | € |  |  |  | — |  |  |  | — |  |  |  | € |  |  |  | 21 |  |  | ₹ | (17 | )
|  |  | £ |  |  |  | — |  |  |  | — |  |  |  | £ |  |  |  | 38 |  |  | ₹ | (13 | )
Buy : Forward contracts |  |  | USD |  |  |  | 575 |  |  | ₹ | (417 | ) |  |  | USD |  |  |  | 634 |  |  | ₹ | 3,057 |
|  |  | JPY |  |  |  | 399 |  |  | ₹ | 6 |  |  |  | JPY |  |  |  | — |  |  |  | — |
|  |  | MXN |  |  |  | — |  |  |  | — |  |  |  | MXN |  |  |  | 10 |  |  |  | ^ |
|  |  | DKK |  |  |  | 9 |  |  | ₹ | (1 | ) |  |  | DKK |  |  |  | 72 |  |  | ₹ | (9 | )
|  |  |  |  |  |  |  |  |  | ₹ | (944 | ) |  |  |  |  |  |  |  |  |  | ₹ | (2,677 | )

^ | Value in less than ₹ 1.

19

The following table summarizes activity in the cash flow hedging reserve within equity related to all derivative instruments classified as cash flow hedges:

|  | Six months ended September 30, |
|  | 2017 |  |  | 2018 |
Balance as at the beginning of the period |  | ₹ | 7,325 |  |  | ₹ | (143 | )
Deferred cancellation gain/ (loss), net |  |  | (2 | ) |  |  | 10 |
Changes in fair value of effective portion of derivatives |  |  | (1,030 | ) |  |  | (5,275 | )
Net gain/ (loss) reclassified to interim condensed consolidated statement of income on occurrence of hedged transactions |  |  | (5,290 | ) |  |  | 1,239 |
Gain/ (loss) on cash flow hedging derivatives, net |  | ₹ | (6,322 | ) |  | ₹ | (4,026 | )
Balance as at the end of the period |  |  | 1,003 |  |  |  | (4,169 | )
Deferred tax thereon |  |  | (180 | ) |  |  | 831 |
Balance as at the end of the period, net of deferred tax |  | ₹ | 823 |  |  | ₹ | (3,338 | )

As at March 31, 2018, September 30, 2017 and 2018, 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

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 cash and cash equivalents, trade receivables, unbilled revenues, borrowings, trade payables, other current financial assets and liabilities approximate their carrying amount largely due to the short-term nature of these instruments. The Company’s long-term debt has been contracted at market rates of interest. Accordingly, the carrying value of such long-term debt approximates fair value. Further, finance lease receivables that are overdue are periodically evaluated based on individual credit worthiness of customers. Based on this evaluation, the Company records allowance for estimated losses on these receivables. As at March 31, 2018 and September 30, 2018, the carrying value of such receivables, net of allowances approximates the fair value.

Investments in liquid and short-term mutual funds, which are classified as FVTPL are measured using net asset values at the reporting date multiplied by the quantity held. Fair value of investments in commercial papers, certificate of deposits and bonds classified as FVTOCI is determined based on the indicative quotes of price and yields prevailing in the market at the reporting date. Fair value of investments in equity instruments classified as FVTOCI is determined using market and income approaches.

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

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).

20

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

|  | As at March 31, 2018 |  |  | As at September 30, 2018 |
Particular |  | Fair value measurements at reporting date |  |  | Fair value measurements at reporting date |
|  | Total |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative instruments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash flow hedges |  |  | 1,139 |  |  |  | — |  |  |  | 1,139 |  |  |  | — |  |  |  | 528 |  |  |  | — |  |  |  | 528 |  |  |  | — |
Others |  |  | 134 |  |  |  | — |  |  |  | 134 |  |  |  | — |  |  |  | 3,282 |  |  |  | — |  |  |  | 3,282 |  |  |  | — |
Investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment in liquid and short-term mutual funds |  |  | 46,438 |  |  |  | 46,438 |  |  |  | — |  |  |  | — |  |  |  | 30,200 |  |  |  | 30,200 |  |  |  | — |  |  |  | — |
Investment in equity instruments |  |  | 5,685 |  |  |  | — |  |  |  | — |  |  |  | 5,685 |  |  |  | 7,494 |  |  |  | — |  |  |  | 518 |  |  |  | 6,976 |
Commercial paper, Certificate of deposits and bonds |  |  | 176,234 |  |  |  | 1,951 |  |  |  | 174,283 |  |  |  | — |  |  |  | 212,662 |  |  |  | 1,890 |  |  |  | 210,772 |  |  |  | — |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative instruments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash flow hedges |  |  | (1,276 | ) |  |  | — |  |  |  | (1,276 | ) |  |  | — |  |  |  | (4,701 | ) |  |  | — |  |  |  | (4,701 | ) |  |  | — |
Others |  |  | (941 | ) |  |  | — |  |  |  | (941 | ) |  |  | — |  |  |  | (1,786 | ) |  |  | — |  |  |  | (1,786 | ) |  |  | — |

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

Derivative instruments (assets and liabilities): The Company enters into derivative financial instruments with various counter-parties, primarily banks with investment grade credit ratings. Derivatives valued using valuation techniques with market observable inputs are mainly interest rate swaps, foreign exchange forward contracts and foreign exchange option contracts. The most frequently applied valuation techniques include forward pricing, swap models and Black Scholes models (for option valuation), using present value calculations. The models incorporate various inputs including the credit quality of counterparties, foreign exchange spot and forward rates, interest rate curves and forward rate curves of the underlying. As at September 30, 2018, the changes in counterparty credit risk had no material effect on the hedge effectiveness assessment for derivatives designated in hedge relationships and other financial instruments recognized at fair value.

Investment in commercial papers, certificate of deposits and bonds: Fair value of these instruments is derived based on the indicative quotes of price and yields prevailing in the market as at reporting date.

Details of assets and liabilities considered under Level 3 classification |  |  |  |  |  |  |  |  |
|  | Investment in |  |  | Derivative Assets - |  |  | Liabilities - Contingent |
|  | equity instruments |  |  | others |  |  | consideration |
Balance as at April 1, 2017 |  | ₹ | 5,303 |  |  | ₹ | 426 |  |  | ₹ | (339 | )
Additions |  |  | 1,851 |  |  |  | — |  |  |  | — |
Payouts |  |  | — |  |  |  | — |  |  |  | 164 |
Transferred to investment in equity accounted investee |  |  | (357 | ) |  |  | — |  |  |  | — |
Gain/loss recognized in interim condensed consolidated statement of income |  |  | — |  |  |  | (426 | ) |  |  | 167 |
Gain/loss recognized in foreign currency translation reserve |  |  | 53 |  |  |  | — |  |  |  | (32 | )
Gain/loss recognized in other comprehensive income |  |  | (1,165 | ) |  |  | — |  |  |  | — |
Finance expense recognized in interim condensed consolidated statement of income |  |  | — |  |  |  | — |  |  |  | 40 |
Balance as at March 31, 2018 |  | ₹ | 5,685 |  |  | ₹ | — |  |  |  | — |
Balance as at April 1, 2018 |  | ₹ | 5,685 |  |  | ₹ | — |  |  | ₹ | — |
Additions |  |  | 2,469 |  |  |  | — |  |  |  | — |
Transfers out of level 3 |  |  | (647 | ) |  |  | — |  |  |  | — |
Gain/(loss) recognized in foreign currency translation reserve |  |  | 510 |  |  |  | — |  |  |  | — |
Gain/(loss) recognized in other comprehensive income |  |  | (1,041 | ) |  |  | — |  |  |  | — |
Balance as at September 30, 2018 |  | ₹ | 6,976 |  |  | ₹ | — |  |  | ₹ | — |

21

15. Foreign currency translation reserve

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

|  | Six months ended September 30, |
|  | 2017 |  |  | 2018 |
Balance at the beginning of the period |  | ₹ | 13,107 |  |  | ₹ | 16,618 |
Translation difference related to foreign operations, net |  |  | 2,844 |  |  |  | 8,952 |
Reclassification of foreign currency translation differences to profit and loss on sale of hosted data center services business |  |  | — |  |  |  | (4,131 | )
Change in effective portion of hedges of net investment in foreign operations |  |  | (64 | ) |  |  | (287 | )
Total change during the period |  |  | 2,780 |  |  |  | 4,534 |
Balance at the end of the period |  | ₹ | 15,887 |  |  | ₹ | 21,152 |

16. Income taxes

Income tax expenses has been allocated as follows:

|  | Three months ended September 30, |  |  | Six months ended September 30, |
|  | 2017 |  |  | 2018 |  |  | 2017 |  |  | 2018 |
Income tax expense as per the interim condensed consolidated statement of income |  | ₹ | 6,426 |  |  | ₹ | 5,347 |  |  | ₹ | 12,420 |  |  | ₹ | 11,212 |
Income tax included in Other comprehensive income on: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unrealized gains/ (losses) on investment securities |  |  | 55 |  |  |  | (329 | ) |  |  | 266 |  |  |  | (734 | )
Gains/(losses) on cash flow hedging derivatives |  |  | (363 | ) |  |  | (564 | ) |  |  | (1,239 | ) |  |  | (802 | )
Defined benefit plan actuarial gains/(losses) |  |  | 28 |  |  |  | 26 |  |  |  | 196 |  |  |  | 116 |
|  | ₹ | 6,146 |  |  | ₹ | 4,480 |  |  | ₹ | 11,643 |  |  | ₹ | 9,792 |

Income tax expenses consists of the following:

|  | Three months ended September 30, |  |  | Six months ended September 30, |
|  | 2017 |  |  | 2018 |  |  | 2017 |  |  | 2018 |
Current taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Domestic |  | ₹ | 4,790 |  |  | ₹ | 4,103 |  |  | ₹ | 8,904 |  |  | ₹ | 8,337 |
Foreign |  |  | 1,260 |  |  |  | 1,860 |  |  |  | 2,536 |  |  |  | 3,584 |
|  |  | 6,050 |  |  |  | 5,963 |  |  |  | 11,440 |  |  |  | 11,921 |
Deferred taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Domestic |  |  | 54 |  |  |  | (298 | ) |  |  | 860 |  |  |  | (541 | )
Foreign |  |  | 322 |  |  |  | (318 | ) |  |  | 120 |  |  |  | (168 | )
|  |  | 376 |  |  |  | (616 | ) |  |  | 980 |  |  |  | (709 | )
|  | ₹ | 6,426 |  |  | ₹ | 5,347 |  |  | ₹ | 12,420 |  |  | ₹ | 11,212 |

Income tax expense are net of reversal of provisions pertaining to earlier periods, amounting to (₹ 132) and ₹ 454 for the three months ended September 30, 2017 and 2018, respectively and ₹ 354 and ₹ 137 the six months ended September 30, 2017 and 2018, respectively.

17. Revenue

|  | Three months ended September 30, |  |  | Six months ended September 30, |
|  | 2017 |  |  | 2018 |  |  | 2017 |  |  | 2018 |
Rendering of services |  | ₹ | 130,984 |  |  | ₹ | 142,060 |  |  | ₹ | 260,183 |  |  | ₹ | 277,627 |
Sales of products |  |  | 3,250 |  |  |  | 3,350 |  |  |  | 10,312 |  |  |  | 7,560 |
|  | ₹ | 134,234 |  |  | ₹ | 145,410 |  |  | ₹ | 270,495 |  |  | ₹ | 285,187 |

22

18. Expenses by nature

|  | Three months ended September 30, |  |  | Six months ended September 30, |
|  | 2017 |  |  | 2018 |  |  | 2017 |  |  | 2018 |
Employee compensation |  | ₹ | 67,612 |  |  | ₹ | 74,216 |  |  | ₹ | 135,054 |  |  |  | 146,258 |
Sub-contracting/ technical fees |  |  | 21,503 |  |  |  | 24,318 |  |  |  | 41,750 |  |  |  | 46,761 |
Cost of hardware and software |  |  | 2,901 |  |  |  | 3,115 |  |  |  | 9,691 |  |  |  | 7,342 |
Travel |  |  | 4,536 |  |  |  | 4,172 |  |  |  | 8,902 |  |  |  | 8,617 |
Facility expenses |  |  | 5,129 |  |  |  | 5,314 |  |  |  | 10,142 |  |  |  | 11,148 |
Depreciation, amortization and impairment |  |  | 5,200 |  |  |  | 4,370 |  |  |  | 10,143 |  |  |  | 8,707 |
Communication |  |  | 1,297 |  |  |  | 1,133 |  |  |  | 2,621 |  |  |  | 2,453 |
Legal and professional fees |  |  | 1,043 |  |  |  | 1,278 |  |  |  | 2,144 |  |  |  | 2,449 |
Rates, taxes and insurance |  |  | 567 |  |  |  | 96 |  |  |  | 1,051 |  |  |  | 509 |
Marketing and brand building |  |  | 698 |  |  |  | 565 |  |  |  | 1,492 |  |  |  | 1,274 |
Lifetime expected credit loss and provision for deferred contract cost |  |  | 346 |  |  |  | 904 |  |  |  | 872 |  |  |  | 2,043 |
Miscellaneous expenses * |  |  | 814 |  |  |  | 6,799 |  |  |  | 2,305 |  |  |  | 8,490 |
Total cost of revenues, selling and marketing expenses and general and administrative expenses |  | ₹ | 111,646 |  |  | ₹ | 126,280 |  |  | ₹ | 226,167 |  |  | ₹ | 246,051 |

* | Miscellaneous expenses for the period three months and six months ended September 30, 2018, includes an amount of ₹ 5,141 ($ 75) paid to National Grid on settlement of a legal claim against the Company.

19. Finance expense

|  | Three months ended September 30, |  |  | Six months ended September 30, |
|  | 2017 |  |  | 2018 |  |  | 2017 |  |  | 2018 |
Interest expense |  | ₹ | 757 |  |  | ₹ | 1,127 |  |  | ₹ | 1,580 |  |  | ₹ | 2,336 |
Exchange fluctuation on foreign currency borrowings, net |  |  | 677 |  |  |  | 442 |  |  |  | 1,455 |  |  |  | 882 |
|  | ₹ | 1,434 |  |  | ₹ | 1,569 |  |  | ₹ | 3,035 |  |  | ₹ | 3,218 |

20. Finance and other income and Foreign exchange gains/(losses), net

|  | Three months ended September 30, |  |  | Six months ended September 30, |
|  | 2017 |  |  | 2018 |  |  | 2017 |  |  | 2018 |
Interest income |  | ₹ | 4,787 |  |  | ₹ | 4,610 |  |  | ₹ | 9,295 |  |  | ₹ | 9,066 |
Dividend income |  |  | 148 |  |  |  | 94 |  |  |  | 319 |  |  |  | 185 |
Net gain from investments classified as FVTPL |  |  | 610 |  |  |  | 421 |  |  |  | 1,455 |  |  |  | 984 |
Net gain from investments classified as FVOCI |  |  | 1,164 |  |  |  | 11 |  |  |  | 1,967 |  |  |  | 98 |
Finance and other income |  | ₹ | 6,709 |  |  | ₹ | 5,136 |  |  | ₹ | 13,036 |  |  | ₹ | 10,333 |
Foreign exchange gains/(losses), net on financial instrument measured at FVTPL |  |  | (679 | ) |  |  | (3,540 | ) |  |  | (519 | ) |  |  | (4,503 | )
Other Foreign exchange gains/(losses), net |  |  | 1,132 |  |  |  | 4,757 |  |  |  | 1,325 |  |  |  | 6,491 |
Foreign exchange gains/(losses), net |  | ₹ | 453 |  |  | ₹ | 1,217 |  |  | ₹ | 806 |  |  | ₹ | 1,988 |
|  | ₹ | 7,162 |  |  | ₹ | 6,353 |  |  | ₹ | 13,842 |  |  | ₹ | 12,321 |

23

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 September 30, |  |  | Six months ended September 30, |
|  | 2017 |  |  | 2018 |  |  | 2017 |  |  | 2018 |
Profit attributable to equity holders of the Company |  | ₹ | 21,917 |  |  | ₹ | 18,889 |  |  | ₹ | 42,682 |  |  | ₹ | 40,095 |
Weight average number of equity shares outstanding |  |  | 4,845,485,149 |  |  |  | 4,503,556,411 |  |  |  | 4,844,289,024 |  |  |  | 4,503,618,086 |
Basic earnings per share |  | ₹ | 4.52 |  |  | ₹ | 4.19 |  |  | ₹ | 8.81 |  |  | ₹ | 8.90 |

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.

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 September 30, |  |  | Six months ended September 30, |
|  | 2017 |  |  | 2018 |  |  | 2017 |  |  | 2018 |
Profit attributable to equity holders of the Company |  | ₹ | 21,917 |  |  | ₹ | 18,889 |  |  | ₹ | 42,682 |  |  | ₹ | 40,095 |
Weight average number of equity shares outstanding |  |  | 4,845,485,149 |  |  |  | 4,503,556,411 |  |  |  | 4,844,289,024 |  |  |  | 4,503,618,086 |
Effect of dilutive equivalent share options |  |  | 7,507,397 |  |  |  | 9,896,226 |  |  |  | 8,051,200 |  |  |  | 9,915,378 |
Weight average number of equity shares for diluted earnings per share |  |  | 4,852,992,546 |  |  |  | 4,513,452,637 |  |  |  | 4,852,340,224 |  |  |  | 4,513,533,464 |
Diluted earnings per share |  | ₹ | 4.52 |  |  | ₹ | 4.19 |  |  | ₹ | 8.80 |  |  | ₹ | 8.89 |

22. Employee benefits

a) Employee costs includes

|  | Three months ended September 30, |  |  | Six months ended September 30, |
|  | 2017 |  |  | 2018 |  |  | 2017 |  |  | 2018 |
Salaries and bonus |  | ₹ | 65,160 |  |  | ₹ | 71,680 |  |  | ₹ | 130,217 |  |  | ₹ | 141,112 |
Employee benefits plans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gratuity and other defined benefit plans |  |  | 244 |  |  |  | 268 |  |  |  | 557 |  |  |  | 595 |
Defined contribution plans |  |  | 1,935 |  |  |  | 1,827 |  |  |  | 3,753 |  |  |  | 3,667 |
Share based compensation |  |  | 273 |  |  |  | 441 |  |  |  | 527 |  |  |  | 884 |
|  | ₹ | 67,612 |  |  | ₹ | 74,216 |  |  | ₹ | 135,054 |  |  | ₹ | 146,258 |

The employee benefit cost is recognized in the following line items in the interim condensed consolidated statement of income:

|  | Three months ended September 30, |  |  | Six months ended September 30, |
|  | 2017 |  |  | 2018 |  |  | 2017 |  |  | 2018 |
Cost of revenues |  | ₹ | 57,099 |  |  | ₹ | 62,272 |  |  | ₹ | 113,777 |  |  | ₹ | 122,445 |
Selling and marketing expenses |  |  | 6,741 |  |  |  | 7,800 |  |  |  | 13,759 |  |  |  | 15,453 |
General and administrative expenses |  |  | 3,772 |  |  |  | 4,144 |  |  |  | 7,518 |  |  |  | 8,360 |
|  | ₹ | 67,612 |  |  | ₹ | 74,216 |  |  | ₹ | 135,054 |  |  | ₹ | 146,258 |

The Company has granted 2,965,000 and 2,965,000 options under RSU option plan during the three and six months ended September 30, 2018, respectively (3,041,800 and 3,056,800 for the three and six months ended September 30, 2017); 2,851,000 and 2,901,000 options under ADS option plan during the three and six months ended September 30, 2018, respectively (2,623,400 and 2,708,400 for three and six months ended September 30, 2017).

The Company has also granted 1,567,000 and 1,567,000 Performance based stock options (RSU) during the three and six months ended September 30, 2018, respectively (Nil and 1,097,600 for the three and six months ended September 30, 2017); 1,673,000 and 1,673,000 Performance based stock options (ADS) during the three and six months ended September 30, 2018, respectively (1,113,600 and 1,113,600 for three and six months ended September 30, 2017).

The RSU grants were issued under Wipro Employee Restricted Stock Unit plan 2007 (WSRUP 2007 plan) and the ADS grants were issued under Wipro ADS Restricted Stock Unit Plan (WARSUP 2004 plan).

24

23. Commitments and contingencies

Capital commitments: As at March 31, 2018 and September 30, 2018 the Company had committed to spend approximately ₹ 13,091 and ₹ 15,958 respectively, under agreements to purchase/ construct property and equipment. These amounts are net of capital advances paid in respect of these purchases.

Guarantees: As at March 31, 2018 and September 30, 2018, performance and financial guarantees provided by banks on behalf of the Company to the Indian Government, customers and certain other agencies amount to approximately ₹ 21,546 and ₹ 21,733 respectively, as part of the bank line of credit.

Contingencies and lawsuits: The Company is subject to legal proceedings and claims (including tax assessment orders/ penalty notices) which have arisen in the ordinary course of its business. Some of the claims involve complex issues and it is not possible to make a reasonable estimate of the expected financial effect, if any, that will result from ultimate resolution of such proceedings. However, the resolution of these legal proceedings is not likely to have a material and adverse effect on the results of operations or the financial 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, 2011 and the aggregate demand is ₹ 47,583 (including interest of ₹ 13,832). The appeals filed against the said demand before the Appellate authorities have been allowed in favor of the Company by the second appellate authority for the years up to March 31, 2008. Further appeals have been filed by the Income tax authorities before the Hon’ble High Court. The Hon’ble High Court has heard and disposed-off majority of the issues in favor of the Company up to years ended March 31, 2004. Department has filed a Special Leave Petition (SLP) before the Supreme Court of India for the year ended March 31, 2001 to March 31, 2004.

On similar issues for years up to March 31, 2000, the Hon’ble High Court of Karnataka has upheld the claim of the Company under section 10A of the Act. For the year ended March 31, 2009, the appeals are pending before Income Tax Appellate Tribunal (ITAT). For years ended March 31, 2010 and March 31, 2011, the Dispute Resolution Panel (DRP) allowed the claim of the Company under section 10A of the Act. The Income tax authorities have filed an appeal before the ITAT.

For year ended March 31, 2013, the Company received the final assessment order in November 2017 with a demand of ₹ 3,286 (including interest of ₹ 1,166), arising primarily on account of section 10AA issues with respect to exclusion from Export Turnover. The Company has filed an appeal before Hon’ble ITAT, Bengaluru within the prescribed timelines.

For year ended March 31, 2014, the Company received the final assessment order in September 2018 with a demand of ₹ 1,030, arising primarily on account of section 10AA issues with respect to exclusion from Export Turnover. The Company will contest the demand before Hon’ble ITAT within the prescribed timelines.

Income tax demands against the Company amounting to ₹ 101,440 and ₹ 94,242 are not acknowledged as debt as at March 31, 2018 and September 30, 2018, respectively. These matters are pending before various Appellate Authorities and the management expects its position will likely be upheld on ultimate resolution and will not have a material adverse effect on the Company’s financial position and results of operations.

The contingent liability in respect of disputed demands for excise duty, custom duty, sales tax and other matters amounts to ₹ 7,745 and ₹ 8,266 as of March 31, 2018 and September 30, 2018. 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.

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. Effective April 1, 2018, consequent to change in organization structure, the Company reorganized its industry verticals. The Manufacturing (MFG) and Technology Business unit (TECH) are split from the former Manufacturing & Technology (MNT) business unit.

The revised industry verticals are as follows: Banking, Financial Services and Insurance (BFSI), Health Business unit (Health BU) previously known as Health Care and Life Sciences Business unit (HLS), Consumer Business unit (CBU), Energy, Natural Resources & Utilities (ENU), Manufacturing (MFG), Technology (TECH) and Communications (COMM). Key service offerings to customers includes software application development and maintenance, research and development services for hardware and software design, business application services, analytics, consulting, infrastructure outsourcing services and business process services.

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Comparative information has been restated to give effect to the above changes.

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

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

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 September 30, 2017, is as follows:

|  | IT Services |  |  | IT Products |  |  | Reconciling Items |  |  |  |
|  | BFSI |  |  | Health BU |  |  | CBU |  |  | ENU |  |  | TECH |  |  | MFG |  |  | COMM |  |  | Total |  |  | Total |
Revenue |  |  | 36,349 |  |  |  | 17,989 |  |  |  | 20,989 |  |  |  | 17,769 |  |  |  | 18,515 |  |  |  | 11,495 |  |  |  | 8,583 |  |  |  | 131,689 |  |  |  | 2,988 |  |  |  | 10 |  |  |  | 134,687 |
Segment Result |  |  | 6,055 |  |  |  | 2,698 |  |  |  | 3,244 |  |  |  | 3,435 |  |  |  | 3,748 |  |  |  | 1,652 |  |  |  | 1,147 |  |  |  | 21,979 |  |  |  | 88 |  |  |  | 169 |  |  |  | 22,236 |
Unallocated |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 805 |  |  |  | — |  |  |  | — |  |  |  | 805 |
Segment Result |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 22,784 |  |  |  | 88 |  |  |  | 169 |  |  |  | 23,041 |
Finance expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (1,434 | )
Finance and other income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 6,709 |
Share of profit/(loss) of equity accounted investee |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 5 |
Profit before tax |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 28,321 |
Income tax expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (6,426 | )
Profit for the period |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 21,895 |
Depreciation and amortization |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 5,200 |

Information on reportable segment for the three months ended September 30, 2018, is as follows:

|  | IT Services |  |  | IT Products |  |  | Reconciling Items |  |  |  |
|  | BFSI |  |  | Health BU |  |  | CBU |  |  | ENU |  |  | TECH |  |  | MFG |  |  | COMM |  |  | Total |  |  | Total |
Revenue |  |  | 44,105 |  |  |  | 18,364 |  |  |  | 23,532 |  |  |  | 18,239 |  |  |  | 19,581 |  |  |  | 11,732 |  |  |  | 8,220 |  |  |  | 143,773 |  |  |  | 2,876 |  |  |  | (22 | ) |  |  | 146,627 |
Other operating income |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 269 |  |  |  | — |  |  |  | — |  |  |  | 269 |
Segment Result |  |  | 7,725 |  |  |  | 2,659 |  |  |  | 4,156 |  |  |  | (2,084 | ) |  |  | 4,644 |  |  |  | 2,247 |  |  |  | 1,070 |  |  |  | 20,417 |  |  |  | (426 | ) |  |  | 46 |  |  |  | 20,037 |
Unallocated |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 310 |  |  |  | — |  |  |  | — |  |  |  | 310 |
Segment Result |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 20,996 |  |  |  | (426 | ) |  |  | 46 |  |  |  | 20,616 |
Finance expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (1,569 | )
Finance and other income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 5,136 |
Share of profit/(loss) of equity accounted investee |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 20 |
Profit before tax |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 24,203 |
Income tax expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (5,347 | )
Profit for the period |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 18,856 |
Depreciation and amortization |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 4,370 |

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Information on reportable segment for the six months ended September 30, 2017, is as follows:

|  | IT Services |  |  | IT Products |  |  | Reconciling Items |  |  |  |
|  | BFSI |  |  | Health BU |  |  | CBU |  |  | ENU |  |  | TECH |  |  | MFG |  |  | COMM |  |  | Total |  |  | Total |
Revenue |  |  | 71,283 |  |  |  | 37,139 |  |  |  | 41,524 |  |  |  | 35,233 |  |  |  | 36,179 |  |  |  | 23,173 |  |  |  | 17,414 |  |  |  | 261,945 |  |  |  | 9,331 |  |  |  | 25 |  |  |  | 271,301 |
Segment Result |  |  | 11,496 |  |  |  | 5,432 |  |  |  | 6,178 |  |  |  | 7,086 |  |  |  | 7,229 |  |  |  | 3,346 |  |  |  | 2,596 |  |  |  | 43,363 |  |  |  | 119 |  |  |  | 315 |  |  |  | 43,797 |
Unallocated |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,337 |  |  |  | — |  |  |  | — |  |  |  | 1,337 |
Segment Result |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 44,700 |  |  |  | 119 |  |  |  | 315 |  |  |  | 45,134 |
Finance expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (3,035 | )
Finance and other income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 13,036 |
Share of profit/(loss) of equity accounted investee |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 4 |
Profit before tax |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 55,139 |
Income tax expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (12,420 | )
Profit for the period |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 42,719 |
Depreciation and amortization |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 10,143 |

Information on reportable segment for the six months ended September 30, 2018, is as follows:

|  | IT Services |  |  | IT Products |  |  | Reconciling Items |  |  |  |
|  | BFSI |  |  | Health BU |  |  | CBU |  |  | ENU |  |  | TECH |  |  | MFG |  |  | COMM |  |  | Total |  |  | Total |
Revenue |  |  | 85,159 |  |  |  | 36,573 |  |  |  | 45,519 |  |  |  | 35,444 |  |  |  | 39,085 |  |  |  | 23,036 |  |  |  | 15,960 |  |  |  | 280,776 |  |  |  | 6,408 |  |  |  | (9 | ) |  |  | 287,175 |
Other operating income |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,798 |  |  |  | — |  |  |  | — |  |  |  | 2,798 |
Segment Result |  |  | 14,874 |  |  |  | 4,729 |  |  |  | 6,771 |  |  |  | 606 |  |  |  | 8,708 |  |  |  | 3,649 |  |  |  | 1,824 |  |  |  | 41,161 |  |  |  | (1,166 | ) |  |  | 124 |  |  |  | 40,119 |
Unallocated |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,005 |  |  |  | — |  |  |  | — |  |  |  | 1,005 |
Segment Result |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 44,964 |  |  |  | (1,166 | ) |  |  | 124 |  |  |  | 43,922 |
Finance expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (3,218 | )
Finance and other income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 10,333 |
Share of profit/(loss) of equity accounted investee |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (33 | )
Profit before tax |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 51,004 |
Income tax expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (11,212 | )
Profit for the period |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 39,792 |
Depreciation and amortization |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 8,707 |

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 September 30, |  |  | Six months ended September 30, |
|  | 2017 |  |  | 2018 |  |  | 2017 |  |  | 2018 |
India |  | ₹ | 10,018 |  |  | ₹ | 8,340 |  |  | ₹ | 22,530 |  |  | ₹ | 17,044 |
Americas * |  |  | 70,768 |  |  |  | 79,621 |  |  |  | 142,191 |  |  |  | 155,674 |
Europe |  |  | 33,404 |  |  |  | 36,722 |  |  |  | 66,147 |  |  |  | 72,627 |
Rest of the world |  |  | 20,497 |  |  |  | 21,944 |  |  |  | 40,433 |  |  |  | 41,830 |
|  | ₹ | 134,687 |  |  | ₹ | 146,627 |  |  | ₹ | 271,301 |  |  | ₹ | 287,175 |

* | Substantially related to operations in the United States of America.

No customer individually accounted for more than 10% of the revenues during the period ended September 30, 2017 and 2018.

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.

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Notes:

a) | “Reconciling items” includes elimination of inter-segment transactions and other corporate activities.

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

c) | 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 interim condensed consolidated statement of income).

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

e) | The Company generally offers multi-year payment terms in certain total outsourcing contracts. These payment terms primarily relate to IT hardware, software and certain transformation services in outsourcing contracts. The finance income on deferred consideration earned under these contracts is included in the revenue of the respective segment and is eliminated under reconciling items.

f) | Net gain from the sale of hosted data center services business and disposal of Wipro Airport IT Services Limited, amounting to ₹ 269 and ₹ 2,798, is included as part of IT services segment result for the period three months and six months ended September 30, 2018, respectively.

g) | Segment results for ENU industry vertical for the period three months and six months ended September 30, 2018, is after considering the impact of ₹ 5,141 ($ 75) paid to National Grid on settlement of a legal claim against the Company.

25. List of subsidiaries and equity accounted investee as at September 30, 2018 is provided below:

Subsidiaries |  | Subsidiaries |  | Subsidiaries |  | Country of Incorporation
Wipro LLC |  |  |  |  |  | USA
|  | Wipro Gallagher Solutions, LLC. |  |  |  | USA
|  |  |  | Opus Capital Markets Consultants LLC |  | USA
|  |  |  | Wipro Promax Analytics Solutions Americas LLC |  | USA
|  | Wipro Insurance Solutions LLC |  |  |  | USA
|  | Wipro IT Services, LLC. |  |  |  | USA
|  |  |  | HealthPlan Services Insurance Agency, LLC. |  | USA
|  |  |  | HealthPlan Services, Inc. |  | USA
|  |  |  | Appirio, Inc. ** |  | USA
|  |  |  | Cooper Software, LLC. |  | USA
|  |  |  | Infocrossing, LLC |  | USA
Wipro Overseas IT Services Pvt. Ltd |  |  |  |  |  | India
Wipro Japan KK |  |  |  |  |  | Japan
Wipro Shanghai Limited |  |  |  |  |  | China
Wipro Trademarks Holding Limited |  |  |  |  |  | India
Wipro Travel Services Limited |  |  |  |  |  | India
Wipro Holdings (UK) Limited |  |  |  |  |  | U.K.
|  | Wipro Digital Aps |  |  |  | Denmark
|  |  |  | Designit A/S ** |  | Denmark
|  | Wipro Europe Limited |  |  |  | U.K.
|  |  |  | Wipro UK Limited |  | U.K.
|  | Wipro Financial Services UK Limited |  |  |  | U.K.
Wipro Information Technology Austria GmbH |  |  |  |  |  | Austria
Wipro Technologies Austria GmbH |  |  |  |  |  | Austria
NewLogic Technologies SARL |  |  |  |  |  | France
Wipro Cyprus Public Limited |  |  |  |  |  | Cyprus
|  | Wipro Doha LLC # |  |  |  | Qatar
|  | Wipro Technologies SA DE CV |  |  |  | Mexico

28

|  | Wipro Philippines, Inc. |  |  |  | Philippines
|  | Wipro Holdings Hungary Korlátolt |  |  |  | Hungary
|  | Felelosségu Társaság |  |  |  |
|  |  |  | Wipro Holdings Investment Korlátolt |  | Hungary
|  |  |  | Felelosségu Társaság |  |
|  | Wipro Technologies SA |  |  |  | Argentina
|  | Wipro Information Technology Egypt |  |  |  | Egypt
|  | SAE |  |  |  |
|  | Wipro Arabia Co. Limited * |  |  |  | Saudi Arabia
|  |  |  | Women’s Business Park Technologies Limited * |  | Saudi Arabia
|  | Wipro Poland SP Z.O.O |  |  |  | Poland
|  | Wipro IT Services Poland SP Z.O.O |  |  |  | Poland
|  | Wipro Technologies Australia Pty Ltd |  |  |  | Australia
|  | Wipro Corporate Technologies Ghana |  |  |  | Ghana
|  | Limited |  |  |  |
|  | Wipro Technologies South Africa |  |  |  | South Africa
|  | (Proprietary) Limited |  |  |  |
|  |  |  | Wipro Technologies Nigeria Limited |  | Nigeria
|  | Wipro IT Service Ukraine LLC |  |  |  | Ukraine
|  | Wipro Information Technology |  |  |  | Netherlands
|  | Netherlands BV. |  |  |  |
|  |  |  | Wipro Portugal S.A. ** |  | Portugal
|  |  |  | Limited Liability Company Wipro |  | Russia
|  |  |  | Technologies Limited |  |
|  |  |  | Wipro Technology Chile SPA |  | Chile
|  |  |  | Wipro Solutions Canada Limited |  | Canada
|  |  |  | Wipro Information Technology Kazakhstan |  | Kazakhstan
|  |  |  | LLP |  |
|  |  |  | Wipro Technologies W.T. Sociedad Anonima |  | Costa Rica
|  |  |  | Wipro Outsourcing Services (Ireland) Limited |  | Ireland
|  |  |  | Wipro Technologies VZ, C.A. |  | Venezuela
|  |  |  | Wipro Technologies Peru S.A.C |  | Peru
|  |  |  | Wipro do Brasil Servicos de Tecnologia S.A. |  | Brazil
|  |  |  | Wipro do Brasil Technologia Ltda ** |  | Brazil
|  | Wipro Technologies SRL |  |  |  | Romania
|  | PT. WT Indonesia |  |  |  | Indonesia
|  | Wipro (Thailand) Co. Limited |  |  |  | Thailand
|  | Wipro Bahrain Limited WLL |  |  |  | Bahrain
|  | Wipro Gulf LLC |  |  |  | Sultanate of
|  |  |  |  |  | Oman
|  | Rainbow Software LLC |  |  |  | Iraq
|  | Cellent GmbH |  |  |  | Germany
|  |  |  | Cellent Mittelstandsberatung GmbH |  | Germany
|  |  |  | Cellent Gmbh ** |  | Austria
Wipro Networks Pte Limited |  |  |  |  |  | Singapore
|  | Wipro (Dalian) Limited |  |  |  | China
|  | Wipro Technologies SDN BHD |  |  |  | Malaysia
Wipro Chengdu Limited |  |  |  |  |  | China
Appirio India Cloud Solutions |  |  |  |  |  | India
Private Limited |  |  |  |  |  |
Wipro IT Services Bangladesh |  |  |  |  |  | Bangladesh
Limited |  |  |  |  |  |
Alight HR Services India Private |  |  |  |  |  | India
Limited |  |  |  |  |  |

29

* | All the above direct subsidiaries are 100% held by the Company except that the Company holds 66.67% of the equity securities of Wipro Arabia Co. Limited and 55% of the equity securities of Women’s Business Park Technologies Limited are held by Wipro Arabia Co. Limited.

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

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

** | Step Subsidiary details of Wipro Portugal S.A, Wipro do Brasil Technologia Ltda, Designit A/S, Cellent GmbH, and Appirio, Inc. are as follows:

Subsidiaries |  | Subsidiaries |  | Subsidiaries |  | Country of Incorporation
Wipro Portugal S.A. |  | Wipro Technologies GmbH |  |  |  | Portugal Germany
Wipro do Brasil Technologia Ltda |  |  |  |  |  | Brazil
|  | Wipro Do Brasil Sistemetas De Informatica Ltd |  |  |  | Brazil
Designit A/S |  |  |  |  |  | Denmark
|  | Designit Denmark A/S |  |  |  | Denmark
|  | Designit Germany GmbH |  |  |  | Germany
|  | Designit Oslo A/S |  |  |  | Norway
|  | Designit Sweden AB |  |  |  | Sweden
|  | Designit T.L.V Ltd. |  |  |  | Israel
|  | Designit Tokyo Ltd. |  |  |  | Japan
|  | Denextep Spain Digital, S.L |  |  |  | Spain
|  |  |  | Designit Colombia S A S |  | Colombia
|  |  |  | Designit Peru SAC |  | Peru
Cellent GmbH |  |  |  |  |  | Austria
|  | Frontworx Informations technologie |  |  |  | Austria
|  | GmbH |  |  |  |
Appirio, Inc. |  |  |  |  |  | USA
|  | Appirio, K.K |  |  |  | Japan
|  | Topcoder, LLC. |  |  |  | USA
|  | Appirio Ltd |  |  |  | Ireland
|  |  |  | Appirio GmbH |  | Germany
|  |  |  | Apprio Ltd (UK) |  | U.K.
|  | Appirio Singapore Pte Ltd |  |  |  | Singapore

As at September 30, 2018, the Company held 43.7% interest in Drivestream Inc, 33% interest in Denim Group Limited and 33.3% in Denim Group Management, LLC, accoutned for using the equity method.

The list of controlled trusts are:

Name of the entity |  | Country of incorporation
Wipro Equity Reward Trust |  | India
Wipro Inc. Benefit Trust |  | India
Wipro Foundation |  | India

26. Bank balance

|  | As at September 30, 2018 |
|  | In current |  |  | In Deposit |  |  |  |
|  | Account |  |  | Account |  |  | Total |
Citi Bank |  | ₹ | 34,572 |  |  | ₹ | 2,390 |  |  | ₹ | 36,962 |
HSBC |  |  | 14,009 |  |  |  | 4,710 |  |  |  | 18,719 |
ANZ Bank |  |  | 316 |  |  |  | 5,270 |  |  |  | 5,586 |
IndusInd Bank |  |  | — |  |  |  | 2,800 |  |  |  | 2,800 |
Wells Fargo Bank |  |  | 2,630 |  |  |  | — |  |  |  | 2,630 |
Yes Bank |  |  | 9 |  |  |  | 2,560 |  |  |  | 2,569 |
HDFC Bank |  |  | 376 |  |  |  | 2,140 |  |  |  | 2,516 |
BNP Paribas |  |  | 346 |  |  |  | 1,232 |  |  |  | 1,578 |
Saudi British Bank |  |  | 1,446 |  |  |  | — |  |  |  | 1,446 |
Axis Bank |  |  | 1 |  |  |  | 1,051 |  |  |  | 1,052 |
DBS |  |  | — |  |  |  | 558 |  |  |  | 558 |
Standard Chartered Bank |  |  | 519 |  |  |  | — |  |  |  | 519 |
Indian Overseas Bank |  |  | 1 |  |  |  | 315 |  |  |  | 316 |
Bank of Montreal |  |  | 249 |  |  |  | — |  |  |  | 249 |
MUFG Bank |  |  | 178 |  |  |  | — |  |  |  | 178 |
Silicon Valley Bank |  |  | 151 |  |  |  | — |  |  |  | 151 |
Unicredit Bank Austria AG |  |  | 145 |  |  |  | — |  |  |  | 145 |
Other |  |  | 1,210 |  |  |  | 634 |  |  |  | 1,844 |
Total |  | ₹ | 56,158 |  |  | ₹ | 23,660 |  |  | ₹ | 79,818 |

30

27. Other operating income

Sale of hosted data center services business: During the six months ended September 30, 2018, the Company has concluded the divestment of its hosted data center services business.

The calculation of the gain on sale is shown below:

Particulars |  | Total |
Cash considerations (net of disposal costs ₹ 660) |  | ₹ | 25,098 |
Less: Carrying amount of net assets disposed (including goodwill of ₹ 13,009) |  |  | (26,418 | )
Add: Reclassification of exchange difference on foreign currency translation |  |  | 4,131 |
Gain on sale |  | ₹ | 2,811 |

In accordance with the sale agreement, total cash consideration is ₹ 27,790 and the Company paid ₹ 3,766 to subscribe for units issued by the buyer. Units amounting to ₹ 2,032 are callable by the buyer if certain business targets committed by the Company are not met over a period of three years. The fair value of these callable units is estimated to be insignificant as at reporting date. Consequently, the sale consideration accounted of ₹ 24,024 and units amounting to ₹ 1,734 units issued by the buyer.

Loss of control in subsidiary: During the six months ended September 30, 2018, the Company has reduced its equity holding from 74% to 11% in Wipro Airport IT Services Limited. The loss/ gain on this transaction is insignificant.

28. As part of a customer contract with Alight LLC, Wipro has acquired Alight HR Services India Private Limited for a consideration of ₹ 8,275 (USD 117). Considering the terms and conditions of the agreement, the Company has concluded that this transaction does not meet the definition of Business under IFRS 3. The transaction was consummated on September 1, 2018. Net assets taken over was ₹ 4,128. The excess of consideration paid and net assets taken over is accounted as ‘costs to obtain contract’, which will be amortized over the tenure of the contract as reduction in revenues.

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

As per our report of even date attached |  | For and on behalf of the Board of Directors |  |
for Deloitte Haskins & Sells LLP |  | Azim H Premji |  | N Vaghul |  | Abidali Neemuchwala
Chartered Accountants |  | Executive Chairman |  | Director |  | Chief Executive Officer
Firm’s Registration No: 117366W/W - 100018 |  | & Managing Director |  |  |  | & Executive Director
Vikas Bagaria |  | Jatin Pravinchandra Dalal |  |  |  | M Sanaulla Khan
Partner |  | Chief Financial Officer |  |  |  | Company Secretary
Membership No. 60408 |  |  |  |  |  |
Bengaluru |  |  |  |  |  |
October 24, 2018 |  |  |  |  |  |

31