EX-99.4 5 d553426dex994.htm EX-99.4

Exhibit 99.4

WIPRO LIMITED AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS UNDER IFRS

AS AT AND FOR THE THREE AND NINE MONTHS ENDED DECEMBER 31, 2019

WIPRO LIMITED AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

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

|  | Notes |  | As at March 31, 2019 |  |  | As at December 31, 2019 |
|  |  |  |  |  |  |  |  |  | Convenience translation into US dollar in millions (unaudited) Refer Note 2(iii) |
ASSETS |  |  |  |  |  |  |  |  |  |  |  |  |  |
Goodwill |  | 6 |  |  | 116,980 |  |  |  | 123,706 |  |  |  | 1,734 |
Intangible assets |  | 6 |  |  | 13,762 |  |  |  | 14,632 |  |  |  | 205 |
Property, plant and equipment |  | 4 |  |  | 70,601 |  |  |  | 78,552 |  |  |  | 1,101 |
Right-of-use assets |  | 5 |  |  | — |  |  |  | 15,706 |  |  |  | 220 |
Financial assets |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative assets |  | 17, 18 |  |  | 173 |  |  |  | — |  |  |  | — |
Investments |  | 8 |  |  | 6,916 |  |  |  | 9,045 |  |  |  | 127 |
Trade receivables |  |  |  |  | 4,373 |  |  |  | 4,373 |  |  |  | 61 |
Other financial assets |  | 11 |  |  | 5,146 |  |  |  | 4,790 |  |  |  | 67 |
Investments accounted for using the equity method |  |  |  |  | 1,235 |  |  |  | 1,291 |  |  |  | 18 |
Deferred tax assets |  |  |  |  | 5,604 |  |  |  | 5,943 |  |  |  | 83 |
Non-current tax assets |  |  |  |  | 20,603 |  |  |  | 12,412 |  |  |  | 174 |
Other non-current assets |  | 12 |  |  | 15,872 |  |  |  | 11,652 |  |  |  | 163 |
Total non-current assets |  |  |  |  | 261,265 |  |  |  | 282,102 |  |  |  | 3,953 |
Inventories |  | 9 |  |  | 3,951 |  |  |  | 2,063 |  |  |  | 29 |
Financial assets |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative assets |  | 17, 18 |  |  | 4,931 |  |  |  | 1,352 |  |  |  | 19 |
Investments |  | 8 |  |  | 220,716 |  |  |  | 164,256 |  |  |  | 2,302 |
Cash and cash equivalents |  | 10 |  |  | 158,529 |  |  |  | 186,637 |  |  |  | 2,615 |
Trade receivables |  |  |  |  | 100,489 |  |  |  | 100,622 |  |  |  | 1,410 |
Unbilled receivables |  |  |  |  | 22,880 |  |  |  | 24,663 |  |  |  | 346 |
Other financial assets |  | 11 |  |  | 14,611 |  |  |  | 9,538 |  |  |  | 134 |
Contract assets |  |  |  |  | 15,038 |  |  |  | 14,553 |  |  |  | 204 |
Current tax assets |  |  |  |  | 7,435 |  |  |  | 3,459 |  |  |  | 48 |
Other current assets |  | 12 |  |  | 23,086 |  |  |  | 21,999 |  |  |  | 308 |
|  |  |  |  | 571,666 |  |  |  | 529,142 |  |  |  | 7,415 |
Assets held for sale |  |  |  |  | 240 |  |  |  | — |  |  |  | — |
Total current assets |  |  |  |  | 571,906 |  |  |  | 529,142 |  |  |  | 7,415 |
TOTAL ASSETS |  |  |  |  | 833,171 |  |  |  | 811,244 |  |  |  | 11,368 |
EQUITY |  |  |  |  |  |  |  |  |  |  |  |  |  |
Share capital |  |  |  |  | 12,068 |  |  |  | 11,426 |  |  |  | 160 |
Securities premium reserve |  |  |  |  | 533 |  |  |  | 1,179 |  |  |  | 17 |
Retained earnings |  |  |  |  | 534,700 |  |  |  | 503,167 |  |  |  | 7,051 |
Share-based payment reserve |  |  |  |  | 2,617 |  |  |  | 2,203 |  |  |  | 31 |
Other components of equity |  |  |  |  | 18,198 |  |  |  | 21,679 |  |  |  | 304 |
Equity attributable to the equity holders of the Company |  |  |  |  | 568,116 |  |  |  | 539,654 |  |  |  | 7,563 |
Non-controlling interest |  |  |  |  | 2,637 |  |  |  | 1,580 |  |  |  | 22 |
TOTAL EQUITY |  |  |  |  | 570,753 |  |  |  | 541,234 |  |  |  | 7,585 |
LIABILITIES |  |  |  |  |  |  |  |  |  |  |  |  |  |
Financial liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |
Long - term loans and borrowings |  | 13 |  |  | 28,368 |  |  |  | 22,299 |  |  |  | 312 |
Derivative liabilities |  | 17, 18 |  |  | — |  |  |  | 4 |  |  |  |  |
Lease liabilities |  |  |  |  | — |  |  |  | 10,632 |  |  |  | 149 |
Other financial liabilities |  | 14 |  |  | — |  |  |  | 5 |  |  |  | — |
Deferred tax liabilities |  |  |  |  | 3,417 |  |  |  | 3,522 |  |  |  | 49 |
Non-current tax liabilities |  |  |  |  | 11,023 |  |  |  | 11,549 |  |  |  | 162 |
Other non-current liabilities |  | 15 |  |  | 5,258 |  |  |  | 6,152 |  |  |  | 86 |
Provisions |  | 16 |  |  | 2 |  |  |  | 2 |  |  |  | — |
Total non-current liabilities |  |  |  |  | 48,068 |  |  |  | 54,165 |  |  |  | 758 |
Financial liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans, borrowings and bank overdrafts |  | 13 |  |  | 71,099 |  |  |  | 72,380 |  |  |  | 1,014 |
Derivative liabilities |  | 17, 18 |  |  | 1,310 |  |  |  | 1,573 |  |  |  | 22 |
Trade payables and accrued expenses |  |  |  |  | 88,304 |  |  |  | 80,570 |  |  |  | 1,130 |
Lease liabilities |  |  |  |  | — |  |  |  | 6,389 |  |  |  | 90 |
Other financial liabilities |  | 14 |  |  | 644 |  |  |  | 604 |  |  |  | 8 |
Contract liabilities |  |  |  |  | 24,768 |  |  |  | 21,153 |  |  |  | 296 |
Current tax liabilities |  |  |  |  | 9,541 |  |  |  | 13,903 |  |  |  | 195 |
Other current liabilities |  | 15 |  |  | 18,046 |  |  |  | 18,749 |  |  |  | 263 |
Provisions |  | 16 |  |  | 638 |  |  |  | 524 |  |  |  | 7 |
Total current liabilities |  |  |  |  | 214,350 |  |  |  | 215,845 |  |  |  | 3,025 |
TOTAL LIABILITIES |  |  |  |  | 262,418 |  |  |  | 270,010 |  |  |  | 3,783 |
TOTAL EQUITY AND LIABILITIES |  |  |  |  | 833,171 |  |  |  | 811,244 |  |  |  | 11,368 |

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 Chartered Accountants Firm’s Registration No: 117366W/W - 100018 |  | Rishad A Premji Chairman |  | M K Sharma Director |  | Abidali Z Neemuchwala Chief Executive Officer & Managing Director
Vikas Bagaria Partner Membership No. 60408 |  | Jatin Pravinchandra Dalal Chief Financial Officer |  |  |  | M Sanaulla Khan Company Secretary
Bengaluru January 14, 2020 |  |  |  |  |  |

1

WIPRO LIMITED AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENT OF INCOME

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

|  |  |  | Three months ended December 31, |  |  | Nine months ended December 31, |
|  | Notes |  | 2018 |  |  | 2019 |  |  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2019 |
|  |  |  |  |  |  |  |  |  | Convenience translation into US dollar in millions (unaudited) Refer Note 2(iii) |  |  |  |  |  |  |  |  | Convenience translation into US dollar in millions (unaudited) Refer Note 2(iii) |
Revenues |  | 21 |  |  | 150,595 |  |  |  | 154,705 |  |  |  | 2,168 |  |  |  | 435,782 |  |  |  | 453,122 |  |  |  | 6,350 |
Cost of revenues |  | 22 |  |  | (103,971 | ) |  |  | (109,673 | ) |  |  | (1,537 | ) |  |  | (306,091 | ) |  |  | (321,952 | ) |  |  | (4,512 | )
Gross profit |  |  |  |  | 46,624 |  |  |  | 45,032 |  |  |  | 631 |  |  |  | 129,691 |  |  |  | 131,170 |  |  |  | 1,838 |
Selling and marketing expenses |  | 22 |  |  | (11,889 | ) |  |  | (11,030 | ) |  |  | (154 | ) |  |  | (33,516 | ) |  |  | (32,612 | ) |  |  | (457 | )
General and administrative expenses |  | 22 |  |  | (6,978 | ) |  |  | (7,496 | ) |  |  | (105 | ) |  |  | (29,282 | ) |  |  | (22,142 | ) |  |  | (310 | )
Foreign exchange gains/(losses), net |  | 25 |  |  | 911 |  |  |  | 727 |  |  |  | 10 |  |  |  | 2,899 |  |  |  | 2,176 |  |  |  | 30 |
Other operating income |  | 28 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,798 |  |  |  | 749 |  |  |  | 10 |
Results from operating activities |  |  |  |  | 28,668 |  |  |  | 27,233 |  |  |  | 382 |  |  |  | 72,590 |  |  |  | 79,341 |  |  |  | 1,111 |
Finance expenses |  | 23 |  |  | (1,627 | ) |  |  | (1,844 | ) |  |  | (26 | ) |  |  | (4,845 | ) |  |  | (5,675 | ) |  |  | (80 | )
Finance and other income |  | 24 |  |  | 5,362 |  |  |  | 5,370 |  |  |  | 75 |  |  |  | 15,695 |  |  |  | 19,174 |  |  |  | 269 |
Share of net profit /(loss) of associates accounted for using the equity method |  |  |  |  | 7 |  |  |  | 34 |  |  |  | — |  |  |  | (26 | ) |  |  | 16 |  |  |  | — |
Profit before tax |  |  |  |  | 32,410 |  |  |  | 30,793 |  |  |  | 431 |  |  |  | 83,414 |  |  |  | 92,856 |  |  |  | 1,300 |
Income tax expense |  | 20 |  |  | (6,966 | ) |  |  | (6,164 | ) |  |  | (86 | ) |  |  | (18,178 | ) |  |  | (18,594 | ) |  |  | (261 | )
Profit for the period |  |  |  |  | 25,444 |  |  |  | 24,629 |  |  |  | 345 |  |  |  | 65,236 |  |  |  | 74,262 |  |  |  | 1,039 |
Profit attributable to: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity holders of the Company |  |  |  |  | 25,103 |  |  |  | 24,558 |  |  |  | 344 |  |  |  | 65,198 |  |  |  | 73,958 |  |  |  | 1,035 |
Non-controlling interest |  |  |  |  | 341 |  |  |  | 71 |  |  |  | 1 |  |  |  | 38 |  |  |  | 304 |  |  |  | 4 |
Profit for the period |  |  |  |  | 25,444 |  |  |  | 24,629 |  |  |  | 345 |  |  |  | 65,236 |  |  |  | 74,262 |  |  |  | 1,039 |
Earnings per equity share: |  | 26 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Attributable to equity share holders of the Company |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  |  |  |  | 4.18 |  |  |  | 4.31 |  |  |  | 0.06 |  |  |  | 10.86 |  |  |  | 12.58 |  |  |  | 0.18 |
Diluted |  |  |  |  | 4.17 |  |  |  | 4.30 |  |  |  | 0.06 |  |  |  | 10.83 |  |  |  | 12.55 |  |  |  | 0.18 |
Weighted average number of equity shares used in computing earnings per equity share |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic |  |  |  |  | 6,006,062,585 |  |  |  | 5,692,132,118 |  |  |  | 5,692,132,118 |  |  |  | 6,006,193,456 |  |  |  | 5,879,588,157 |  |  |  | 5,879,588,157 |
Diluted |  |  |  |  | 6,020,671,301 |  |  |  | 5,703,265,041 |  |  |  | 5,703,265,041 |  |  |  | 6,020,140,129 |  |  |  | 5,892,966,906 |  |  |  | 5,892,966,906 |

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 Chartered Accountants Firm’s Registration No: 117366W/W - 100018 |  | Rishad A Premji Chairman |  | M K Sharma Director |  | Abidali Z Neemuchwala Chief Executive Officer & Managing Director
Vikas Bagaria Partner Membership No. 60408 |  | Jatin Pravinchandra Dalal Chief Financial Officer |  |  |  | M Sanaulla Khan Company Secretary
Bengaluru January 14, 2020 |  |  |  |  |  |

2

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 December 31, |  |  | Nine months ended December 31, |
|  | Notes |  |  | 2018 |  |  | 2019 |  |  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2019 |
|  |  |  |  |  |  |  |  |  |  | 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 |  |  |  |  |  |  | 25,444 |  |  |  | 24,629 |  |  |  | 345 |  |  |  | 65,236 |  |  |  | 74,262 |  |  |  | 1,039 |
Other Comprehensive Income (OCI) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Items that will not be reclassified to profit or loss in subsequent periods |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Defined benefit plan actuarial gains/(losses) |  |  |  |  |  |  | (263 | ) |  |  | (128 | ) |  |  | (2 | ) |  |  | 192 |  |  |  | (354 | ) |  |  | (5 | )
Net change in fair value of financial instruments through OCI |  |  |  |  |  |  | (104 | ) |  |  | 550 |  |  |  | 8 |  |  |  | (1,264 | ) |  |  | 625 |  |  |  | 9 |
|  |  |  |  |  |  | (367 | ) |  |  | 422 |  |  |  | 6 |  |  |  | (1,072 | ) |  |  | 271 |  |  |  | 4 |
Items that may be reclassified to profit or loss in subsequent periods |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency translation differences |  |  | 19 |  |  |  | (4,589 | ) |  |  | 2,175 |  |  |  | 30 |  |  |  | 4,305 |  |  |  | 3,978 |  |  |  | 56 |
Reclassification of foreign currency translation differences to profit and loss on sale of hosted data center services business |  |  |  |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (4,131 | ) |  |  | — |  |  |  | — |
Net change in time value of option contracts designated as cash flow hedges |  |  |  |  |  |  | 381 |  |  |  | (136 | ) |  |  | (2 | ) |  |  | 118 |  |  |  | (455 | ) |  |  | (6 | )
Net change in intrinsic value of option contracts designated as cash flow hedges |  |  |  |  |  |  | 1,881 |  |  |  | (920 | ) |  |  | (13 | ) |  |  | 316 |  |  |  | (896 | ) |  |  | (13 | )
Net change in fair value of forward contracts designated as cash flow hedges |  |  |  |  |  |  | 2,324 |  |  |  | (970 | ) |  |  | (14 | ) |  |  | 928 |  |  |  | (1,149 | ) |  |  | (16 | )
Net change in fair value of financial instruments through OCI |  |  |  |  |  |  | 793 |  |  |  | (274 | ) |  |  | (4 | ) |  |  | (449 | ) |  |  | 1,140 |  |  |  | 16 |
|  |  |  |  |  |  | 790 |  |  |  | (125 | ) |  |  | (3 | ) |  |  | 1,087 |  |  |  | 2,618 |  |  |  | 37 |
Total other comprehensive income/ (loss), net of taxes |  |  |  |  |  |  | 423 |  |  |  | 297 |  |  |  | 4 |  |  |  | 15 |  |  |  | 2,889 |  |  |  | 40 |
Total comprehensive income for the period |  |  |  |  |  |  | 25,867 |  |  |  | 24,926 |  |  |  | 349 |  |  |  | 65,251 |  |  |  | 77,151 |  |  |  | 1,079 |
Profit attributable to: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity holders of the Company |  |  |  |  |  |  | 25,616 |  |  |  | 24,842 |  |  |  | 348 |  |  |  | 65,074 |  |  |  | 76,793 |  |  |  | 1,074 |
Non-controlling interest |  |  |  |  |  |  | 251 |  |  |  | 84 |  |  |  | 1 |  |  |  | 177 |  |  |  | 358 |  |  |  | 5 |
|  |  |  |  |  |  | 25,867 |  |  |  | 24,926 |  |  |  | 349 |  |  |  | 65,251 |  |  |  | 77,151 |  |  |  | 1,079 |

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 Chartered Accountants Firm’s Registration No: 117366W/W - 100018 |  | Rishad A Premji Chairman |  | M K Sharma Director |  | Abidali Z Neemuchwala Chief Executive Officer & Managing Director
Vikas Bagaria Partner Membership No. 60408 |  | Jatin Pravinchandra Dalal Chief Financial Officer |  |  |  | M Sanaulla Khan Company Secretary
Bengaluru January 14, 2020 |  |  |  |  |  |

3

WIPRO LIMITED AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

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

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Other components of equity |  |  |  |  |  |  |  |  |  |
Particulars |  | Number of shares* |  |  | Share capital, fully paid- up |  |  | Securities premium reserve |  |  | 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 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 65,198 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 65,198 |  |  |  | 38 |  |  |  | 65,236 |
Other comprehensive income |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 35 |  |  |  | 1,362 |  |  |  | (1,521 | ) |  |  | (124 | ) |  |  | 139 |  |  |  | 15 |
Total comprehensive income for the period |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 65,198 |  |  |  | — |  |  |  | 35 |  |  |  | 1,362 |  |  |  | (1,521 | ) |  |  | 65,074 |  |  |  | 177 |  |  |  | 65,251 |
Transaction with owners of the Company, recognized directly in equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Contributions by and distributions to owners of the Company |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Issue of equity shares on exercise of options |  |  | 1,237,682 |  |  |  | 2 |  |  |  | 383 |  |  |  | — |  |  |  | (383 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2 |  |  |  | — |  |  |  | 2 |
Issue of shares by controlled trust on exercise of options |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 416 |  |  |  | (416 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Loss of control in subsidiary |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (52 | ) |  |  | (52 | )
Infusion of capital |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 28 |  |  |  | 28 |
Compensation cost related to employee share based payment |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 4 |  |  |  | 1,379 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,383 |  |  |  | — |  |  |  | 1,383 |
Total transactions with owners of the Company |  |  | 1,237,682 |  |  |  | 2 |  |  |  | 383 |  |  |  | 420 |  |  |  | 580 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,385 |  |  |  | (24 | ) |  |  | 1,361 |
As at December 31, 2018 |  |  | 4,525,022,173 |  |  |  | 9,050 |  |  |  | 1,183 |  |  |  | 516,604 |  |  |  | 2,352 |  |  |  | 16,653 |  |  |  | 1,248 |  |  |  | 26 |  |  |  | 547,116 |  |  |  | 2,563 |  |  |  | 549,679 |

4

WIPRO LIMITED AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

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

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Other components of equity |  |  |  |  |  |  |  |  |  |
Particulars |  | Number of shares* |  |  | Share capital, fully paid- up |  |  | Securities premium reserve |  |  | 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, 2019 |  |  | 6,033,935,388 |  |  |  | 12,068 |  |  |  | 533 |  |  |  | 534,700 |  |  |  | 2,617 |  |  |  | 15,250 |  |  |  | 2,415 |  |  |  | 533 |  |  |  | 568,116 |  |  |  | 2,637 |  |  |  | 570,753 |
Adjustment on adoption of IFRS 16 (net of tax) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (866 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (866 | ) |  |  | — |  |  |  | (866 | )
Adjusted balances as at April 1, 2019 |  |  | 6,033,935,388 |  |  |  | 12,068 |  |  |  | 533 |  |  |  | 533,834 |  |  |  | 2,617 |  |  |  | 15,250 |  |  |  | 2,415 |  |  |  | 533 |  |  |  | 567,250 |  |  |  | 2,637 |  |  |  | 569,887 |
Total comprehensive income for the period |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Profit for the period |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 73,958 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 73,958 |  |  |  | 304 |  |  |  | 74,262 |
Other comprehensive income |  |  | — |  |  |  | — |  |  |  |  |  |  |  | — |  |  |  | — |  |  |  | 3,924 |  |  |  | (2,500 | ) |  |  | 1,411 |  |  |  | 2,835 |  |  |  | 54 |  |  |  | 2,889 |
Total comprehensive income for the period |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 73,958 |  |  |  | — |  |  |  | 3,924 |  |  |  | (2,500 | ) |  |  | 1,411 |  |  |  | 76,793 |  |  |  | 358 |  |  |  | 77,151 |
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 |  |  | 2,164,004 |  |  |  | 4 |  |  |  | 646 |  |  |  |  |  |  |  | (646 | ) |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 4 |  |  |  |  |  |  |  | 4 |
Buyback of equity shares |  |  | (323,076,923 | ) |  |  | (646 | ) |  |  |  |  |  |  | (105,000 | ) |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 646 |  |  |  | (105,000 | ) |  |  |  |  |  |  | (105,000 | )
Transaction cost related to buyback |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (298 | ) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (298 | ) |  |  |  |  |  |  | (298 | )
Issue of shares by controlled trust on exercise of options |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 667 |  |  |  | (667 | ) |  |  |  |  |  |  |  |  |  |  |  |  |  |  | — |  |  |  |  |  |  |  | — |
Compensation cost related to employee share based payment |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 6 |  |  |  | 899 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 905 |  |  |  |  |  |  |  | 905 |
Cash dividend paid |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (1,415 | ) |  |  | (1,415 | )
Total transactions with owners of the Company |  |  | (320,912,919 | ) |  |  | (642 | ) |  |  | 646 |  |  |  | (104,625 | ) |  |  | (414 | ) |  |  | — |  |  |  | — |  |  |  | 646 |  |  |  | (104,389 | ) |  |  | (1,415 | ) |  |  | (105,804 | )
As at December 31, 2019 |  |  | 5,713,022,469 |  |  |  | 11,426 |  |  |  | 1,179 |  |  |  | 503,167 |  |  |  | 2,203 |  |  |  | 19,174 |  |  |  | (85 | ) |  |  | 2,590 |  |  |  | 539,654 |  |  |  | 1,580 |  |  |  | 541,234 |
Convenience translation into US dollar in millions (unaudited) Refer Note 2(iii) |  |  |  |  |  |  | 160 |  |  |  | 17 |  |  |  | 7,051 |  |  |  | 31 |  |  |  | 269 |  |  |  | (1 | ) |  |  | 36 |  |  |  | 7,563 |  |  |  | 22 |  |  |  | 7,585 |

* | Includes 21,129,538 and 24,354,793 treasury shares held as at December 31, 2018 and 2019, respectively by a controlled trust. 2,999,060 shares have been transferred by the controlled trust to eligible employees on exercise of options during the period ended December 31, 2019.

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 |  | Rishad A Premji |  | M K Sharma |  | Abidali Z Neemuchwala
Chartered Accountants |  | Chairman |  | Director |  | Chief Executive Officer
Firm’s Registration No: 117366W/W - 100018 |  |  |  |  |  | & Managing Director
Vikas Bagaria |  | Jatin Pravinchandra Dalal |  |  |  | M Sanaulla Khan
Partner |  | Chief Financial Officer |  |  |  | Company Secretary
Membership No. 60408 |  |  |  |  |  |
Bengaluru |  |  |  |  |  |
January 14, 2020 |  |  |  |  |  |

5

WIPRO LIMITED AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

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

|  | Nine months ended December 31, |
|  | 2018 |  |  | 2019 |  |  | 2019 |
|  |  |  |  |  |  |  | Convenience translation into US dollar in millions (unaudited) Refer Note 2(iii) |
Cash flows from operating activities: |  |  |  |  |  |  |  |  |  |  |  |
Profit for the period |  |  | 65,236 |  |  |  | 74,262 |  |  |  | 1,041 |
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 |  |  | (77 | ) |  |  | 18 |  |  |  | — |
Depreciation, amortization and impairment |  |  | 13,879 |  |  |  | 15,064 |  |  |  | 211 |
Unrealized exchange (gain)/ loss, net |  |  | (1,775 | ) |  |  | 3,602 |  |  |  | 50 |
Share based compensation expense |  |  | 1,379 |  |  |  | 899 |  |  |  | 13 |
Share of net (profit)/ loss of associates accounted for using equity method |  |  | 26 |  |  |  | (16 | ) |  |  | — |
Income tax expense |  |  | 18,178 |  |  |  | 18,594 |  |  |  | 261 |
Dividend, gain from investments and interest (income)/expenses, net |  |  | (12,261 | ) |  |  | (15,206 | ) |  |  | (213 | )
Gain from sale of business and loss of control in subsidiary, net |  |  | (2,798 | ) |  |  | (749 | ) |  |  | (10 | )
Changes in operating assets and liabilities, net of effects from acquisitions |  |  |  |  |  |  |  |  |  |  |  |
Trade receivables |  |  | 2,201 |  |  |  | 1,135 |  |  |  | 16 |
Unbilled receivables and contract assets |  |  | 1,609 |  |  |  | (603 | ) |  |  | (8 | )
Inventories |  |  | (535 | ) |  |  | 1,889 |  |  |  | 26 |
Other assets |  |  | (3,166 | ) |  |  | 668 |  |  |  | 9 |
Trade payables, accrued expenses, other liabilities and provisions |  |  | 10,160 |  |  |  | (8,109 | ) |  |  | (114 | )
Contract liabilities |  |  | 8,939 |  |  |  | (3,943 | ) |  |  | (55 | )
Cash generated from operating activities before taxes |  |  | 100,995 |  |  |  | 87,505 |  |  |  | 1,227 |
Income taxes paid, net |  |  | (17,944 | ) |  |  | (933 | ) |  |  | (13 | )
Net cash generated from operating activities |  |  | 83,051 |  |  |  | 86,572 |  |  |  | 1,214 |
Cash flows from investing activities: |  |  |  |  |  |  |  |  |  |  |  |
Purchase of property, plant and equipment |  |  | (17,158 | ) |  |  | (17,537 | ) |  |  | (246 | )
Proceeds from sale of property, plant and equipment |  |  | 1,520 |  |  |  | 710 |  |  |  | 10 |
Purchase of investments |  |  | (614,275 | ) |  |  | (855,465 | ) |  |  | (11,988 | )
Proceeds from sale of investments |  |  | 645,958 |  |  |  | 914,556 |  |  |  | 12,816 |
Proceeds from sale of hosted data centre services business and loss of control in subsidiary, net of related expenses and cash |  |  | 26,103 |  |  |  | — |  |  |  | — |
Payment for business acquisitions, net of cash acquired |  |  | — |  |  |  | (6,381 | ) |  |  | (89 | )
Proceeds from sale of business |  |  | — |  |  |  | 7,459 |  |  |  | 105 |
Interest received |  |  | 16,022 |  |  |  | 18,716 |  |  |  | 262 |
Dividend received |  |  | 275 |  |  |  | 262 |  |  |  | 4 |
Net cash generated in investing activities |  |  | 58,445 |  |  |  | 62,320 |  |  |  | 874 |
Cash flows from financing activities: |  |  |  |  |  |  |  |  |  |  |  |
Proceeds from issuance of equity shares and shares pending allotment |  |  | 2 |  |  |  | 10 |  |  |  | — |
Repayment of loans and borrowings |  |  | (67,798 | ) |  |  | (73,096 | ) |  |  | (1,024 | )
Proceeds from loans and borrowings |  |  | 31,172 |  |  |  | 65,245 |  |  |  | 914 |
Repayment of lease liabilities |  |  | — |  |  |  | (5,046 | ) |  |  | (71 | )
Payment for deferred contingent consideration in respect of business combination |  |  | (265 | ) |  |  | — |  |  |  | — |
Payment for buy back of shares, including transaction cost |  |  | — |  |  |  | (105,298 | ) |  |  | (1,476 | )
Interest paid |  |  | (3,598 | ) |  |  | (3,558 | ) |  |  | (50 | )
Payment of cash dividend to Non-controlling interest |  |  | — |  |  |  | (1,415 | ) |  |  | (20 | )
Net cash used in financing activities |  |  | (40,487 | ) |  |  | (123,158 | ) |  |  | (1,727 | )
Net increase in cash and cash equivalents during the period |  |  | 101,009 |  |  |  | 25,734 |  |  |  | 361 |
Effect of exchange rate changes on cash and cash equivalents |  |  | 834 |  |  |  | 1,276 |  |  |  | 18 |
Cash and cash equivalents at the beginning of the period |  |  | 40,926 |  |  |  | 158,525 |  |  |  | 2,221 |
Cash and cash equivalents at the end of the period (Note 10) |  |  | 142,769 |  |  |  | 185,535 |  |  |  | 2,600 |

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 |  | Rishad A Premji |  | M K Sharma |  | Abidali Z Neemuchwala
Chartered Accountants |  | Chairman |  | Director |  | Chief Executive Officer
Firm’s Registration No: 117366W/W - 100018 |  |  |  |  |  | & Managing Director
Vikas Bagaria |  | Jatin Pravinchandra Dalal |  |  |  | M Sanaulla Khan
Partner |  | Chief Financial Officer |  |  |  | Company Secretary
Membership No. 60408 |  |  |  |  |  |
Bengaluru |  |  |  |  |  |
January 14, 2020 |  |  |  |  |  |

6

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, Bengaluru – 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

January 14, 2020.

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, 2019. 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 at April 1, 2019.

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 nine months ended December 31, 2019, have been translated into United States dollars at the certified foreign exchange rate of US$1 = ₹71.36 as published by Federal Reserve Board of Governors on December 31, 2019. 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.

(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.

7

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, revenue recognized, profit and timing of revenue for remaining performance obligations 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 carryforwards 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.

| g) | Expected credit losses on financial assets: The impairment provisions of financial assets and contract 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 past history of collections, customer’s creditworthiness, existing market conditions as well as forward looking estimates at the end of each reporting period.

8

| 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 life is 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) | Useful lives of intangible assets: The Company amortizes intangible assets on a straight-line basis over estimated useful lives of the assets. The useful life is estimated based on a number of factors including the effects of obsolescence, demand, competition and other economic factors such as the stability of the industry and known technological advances and the level of maintenance expenditures required to obtain the expected future cash flows from the assets. The estimated useful life is reviewed at least annually.

| k) | Leases: IFRS 16 defines a lease term as the non-cancellable period for which the lessee has the right to use an underlying asset including optional periods, when an entity is reasonably certain to exercise an option to extend (or not to terminate) a lease. The Company considers all relevant facts and circumstances that create an economic incentive for the lessee to exercise the option when determining the lease term. The option to extend the lease term are included in the lease term, if it is reasonably certain that the lessee will exercise the option. The Company reassess the option when significant events or changes in circumstances occur that are within the control of the lessee.

| l) | 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, 2019, for a discussion of the Company’s other critical accounting policies except for the adoption of new accounting standards, amendments and interpretations effective as at April 1, 2019.

On April 1, 2019, the Company adopted IFRS 16, Leases. Accordingly, the policy for Leases as presented in the Company’s Annual Report is amended as under:

IFRS 16 – Leases

The Company evaluates each contract or arrangement, whether it qualifies as lease as defined under IFRS 16.

The Company as a lessee

The Company assesses, whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract involves–

(a) | the use of an identified asset,

(b) | the right to obtain substantially all the economic benefits from use of the identified asset, and

(c) | the right to direct the use of the identified asset.

The Company at the inception of the lease contract recognizes a Right-of-Use (RoU) asset at cost and corresponding lease liability, except for leases with term of less than twelve months (short term) and low-value assets.

The cost of the right-of-use assets comprises the amount of the initial measurement of the lease liability, any lease payments made at or before the inception date of the lease plus any initial direct costs, less any lease incentives received. Subsequently, the right-of-use assets is measured at cost less any accumulated depreciation and accumulated impairment losses, if any. The right-of-use assets is depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use assets.

9

The Company applies IAS 36 to determine whether a RoU asset is impaired and accounts for any identified impairment loss as described in the impairment of non-financial assets included as part of our annual financial statements for the year ended March 31, 2019.

For lease liabilities at inception, the Company measures the lease liability at the present value of the lease payments that are not paid at that date. The lease payments are discounted using the interest rate implicit in the lease, if that rate is readily determined, if that rate is not readily determined, the lease payments are discounted using the incremental borrowing rate.

The Company recognizes the amount of the re-measurement of lease liability as an adjustment to the right-of-use assets. Where the carrying amount of the right-of-use assets is reduced to zero and there is a further reduction in the measurement of the lease liability, the Company recognizes any remaining amount of the re-measurement in consolidated statement of income.

For short-term and low value leases, the Company recognizes the lease payments as an operating expense on a straight-line basis over the lease term.

Lease payments have been classified as cash used in Financing activities.

The Company as a lessor

Leases for which the Company is a lessor is classified as a finance or operating lease. Contracts in which all the risks and rewards of the lease are substantially transferred to the lessee are classified as a finance lease. All other leases are classified as operating leases.

Leases, for which the Company is an intermediate lessor, it accounts for the head-lease and sub-lease as two separate contracts. The sub-lease is classified as a finance lease or an operating lease by reference to the RoU asset arising from the head-lease.

New Accounting standards, amendments and interpretations adopted by the Company effective from April 1, 2019:

IFRS 16 - Leases

On April 1, 2019, the Company has adopted IFRS 16, Leases, applied to all lease contracts outstanding as at April 1, 2019 using modified retrospective method by recording the cumulative effect of initial application as an adjustment to opening retained earnings. The Company has made use of the following practical expedient available on transition to IFRS 16, (a) not to reassess whether a contract is or contains a lease, accordingly the definition of lease in accordance with IAS 17 and IFRIC-4 will continue to be applied to those leases entered or modified before April 1, 2019. (b) The Company has applied a single discount rate to a portfolio of leases of similar assets in similar economic environment, consequently, the Company has recorded the lease liability at the present value of remaining lease payments, discounted using the incremental borrowing rate at the date of initial application and the right to use asset at its carrying amount as if the standard had been applied since the commencement date of the lease but discounted using the incremental borrowing rate at the date of initial application (c) excluded the initial direct costs from measurement of the RoU asset (d) Not to recognize RoU assets and lease liabilities for leases with less than twelve months of lease term and low-value assets on the date of initial application.

The weighted average of discount rate applied to lease liabilities as at April 1, 2019 is 5.7%.

On adoption of IFRS 16,

| a) | The Company has recognized right-of use assets of ₹13,439 and corresponding lease liability ₹15,314.

| b) | Net carrying value of assets procured under the finance lease of ₹1,243 (gross carrying and accumulated depreciation value ₹3,420 and ₹2,177 respectively) have been reclassified from Property Plant and Equipment to right- of-use assets.

| c) | Obligations under Finance leases ₹2,002 (non-current and current obligation under finance leases ₹496 and ₹1,506 respectively) have been reclassified to lease liabilities.

| d) | Prepaid rent on leasehold land and other assets, which were earlier classified under Other assets have been reclassified to right-of-use assets by ₹2,215.

The adoption of the new standard has resulted in a reduction of ₹866 in opening retained earnings, net of tax.

The Company recognized during the period in the interim condensed consolidated statement of income, depreciation expense from right-of-use assets ₹4,161 and interest expenses on lease liabilities ₹646.

Lease payments during the period have been disclosed under financing activities in the Consolidated Statement of Cash flows.

The comparatives as at and for the period ended March 31, 2019 and December 31, 2018 have not been retrospectively restated.

10

The adoption of IFRS 16 did not have any material impact on Consolidated Statement of income and earnings per share.

The difference between the lease obligation disclosed as of March 31, 2019 under IAS 17 (Refer Note 29 of the 2019 Annual Report) and the value of the lease liabilities as of April 1, 2019 is primarily on account of practical expedients exercised for low value assets and short term leases, inclusion of extension and termination options reasonably certain to be exercised, in measuring the lease liability in accordance with IFRS 16 and discounting the lease liabilities to the present value under IFRS 16.

IFRIC 23 – Uncertainty over Income Tax treatments

The International Accounting Standards Board 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. The adoption of IFRIC 23 did not have any material impact on consolidated financial statements of the Company.

Amendment to IAS 19 - Plan Amendment, Curtailment or Settlement

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. The adoption of amendment to IAS 19 did not have any material impact on consolidated financial statements of the Company.

Amendment to IAS 12 – Income Taxes

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 adoption of amendment to IAS 12 did not have any impact on consolidated financial statements of the Company.

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, 2019 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:

Amendment to IFRS 3 - Business combination

On October 22, 2018, the International Accounting Standard Board has issued amendments to IFRS 3, ‘Business Combinations’, in connection with clarification of business definition, which help in determining whether an acquisition made is of a business or a group of assets. The amendment added a test that makes it easier to conclude that a Company has acquired a group of assets, rather than a business, if the value of the assets acquired is substantially all concentrated in a single asset or group of similar assets. These amendments are effective for annual reporting periods beginning on or after January 1, 2020, with early application permitted. The Company is currently evaluating the impact of amendment to IFRS 3 on the Company’s consolidated financial statements.

4. Property, plant and equipment

|  | Land |  |  | Buildings |  |  | Plant and machinery * |  |  | Furniture fixtures and equipment |  |  | Vehicles |  |  | Total |
Gross carrying value: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As at April 1, 2018 |  | ₹ | 3,637 |  |  | ₹ | 25,145 |  |  | ₹ | 87,222 |  |  | ₹ | 15,772 |  |  | ₹ | 1,139 |  |  | ₹ | 132,915 |
Translation adjustment |  |  | (2 | ) |  |  | 9 |  |  |  | 801 |  |  |  | 32 |  |  |  | (6 | ) |  |  | 834 |
Additions |  |  | 65 |  |  |  | 515 |  |  |  | 8,401 |  |  |  | 1,623 |  |  |  | 3 |  |  |  | 10,607 |
Disposals |  |  | — |  |  |  | (213 | ) |  |  | (2,973 | ) |  |  | (917 | ) |  |  | (97 | ) |  |  | (4,200 | )
As at December 31, 2018 |  | ₹ | 3,700 |  |  | ₹ | 25,456 |  |  | ₹ | 93,451 |  |  | ₹ | 16,510 |  |  | ₹ | 1,039 |  |  | ₹ | 140,156 |
Accumulated depreciation: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As at April 1, 2018 |  |  | — |  |  | ₹ | 5,824 |  |  | ₹ | 65,325 |  |  | ₹ | 11,983 |  |  | ₹ | 506 |  |  | ₹ | 83,638 |
Translation adjustment |  |  | — |  |  |  | 10 |  |  |  | 477 |  |  |  | 13 |  |  |  | (3 | ) |  |  | 497 |
Depreciation |  |  | — |  |  |  | 768 |  |  |  | 8,240 |  |  |  | 1,022 |  |  |  | 243 |  |  |  | 10,273 |
Disposals |  |  | — |  |  |  | (84 | ) |  |  | (2,134 | ) |  |  | (491 | ) |  |  | (51 | ) |  |  | (2,760 | )
As at December 31, 2018 |  | ₹ | — |  |  | ₹ | 6,518 |  |  | ₹ | 71,908 |  |  | ₹ | 12,527 |  |  | ₹ | 695 |  |  | ₹ | 91,648 |
Capital work-in-progress |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | ₹ | 21,700 |
Net carrying value including Capital work-in-progress as at December 31, 2018 |  |  | ₹ | 70,208 |

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Gross carrying value: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As at April 1, 2018 |  | ₹ | 3,637 |  |  | ₹ | 25,145 |  |  | ₹ | 87,222 |  |  | ₹ | 15,772 |  |  | ₹ | 1,139 |  |  | ₹ | 132,915 |
Translation adjustment |  |  | (5 | ) |  |  | (8 | ) |  |  | 613 |  |  |  | — |  |  |  | (6 | ) |  |  | 594 |
Additions |  |  | 65 |  |  |  | 2,684 |  |  |  | 10,402 |  |  |  | 1,951 |  |  |  | 4 |  |  |  | 15,106 |
Disposals |  |  | — |  |  |  | (331 | ) |  |  | (5,871 | ) |  |  | (1,218 | ) |  |  | (189 | ) |  |  | (7,609 | )
As at March 31, 2019 |  | ₹ | 3,697 |  |  | ₹ | 27,490 |  |  | ₹ | 92,366 |  |  | ₹ | 16,505 |  |  | ₹ | 948 |  |  | ₹ | 141,006 |
Accumulated depreciation/ impairment: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As at April 1, 2018 |  |  | — |  |  |  | 5,824 |  |  |  | 65,325 |  |  |  | 11,983 |  |  |  | 506 |  |  | ₹ | 83,638 |
Translation adjustment |  |  | — |  |  |  | 8 |  |  |  | 332 |  |  |  | (6 | ) |  |  | (3 | ) |  |  | 331 |
Depreciation and impairment** |  |  | — |  |  |  | 1,034 |  |  |  | 12,298 |  |  |  | 1,363 |  |  |  | 304 |  |  |  | 14,999 |
Disposals |  |  | — |  |  |  | (151 | ) |  |  | (4,767 | ) |  |  | (747 | ) |  |  | (125 | ) |  |  | (5,790 | )
As at March 31, 2019 |  | ₹ | — |  |  | ₹ | 6,715 |  |  | ₹ | 73,188 |  |  | ₹ | 12,593 |  |  | ₹ | 682 |  |  | ₹ | 93,178 |
Capital work-in-progress |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | ₹ | 22,773 |
Net carrying value including Capital work-in-progress as at March 31, 2019 |  |  | ₹ | 70,601 |
Gross carrying value: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As at April 1, 2019 |  | ₹ | 3,697 |  |  | ₹ | 27,490 |  |  | ₹ | 92,366 |  |  | ₹ | 16,505 |  |  | ₹ | 948 |  |  | ₹ | 141,006 |
Reclassified on adoption of IFRS 16 |  |  | — |  |  |  | — |  |  |  | (3,420 | ) |  |  | — |  |  |  | — |  |  |  | (3,420 | )
Adjusted balance as at April 1, 2019 |  |  | 3,697 |  |  |  | 27,490 |  |  |  | 88,946 |  |  |  | 16,505 |  |  |  | 948 |  |  |  | 137,586 |
Translation adjustment |  |  | 4 |  |  |  | 91 |  |  |  | 889 |  |  |  | 80 |  |  |  | 2 |  |  |  | 1,066 |
Additions |  |  | 55 |  |  |  | 1,905 |  |  |  | 9,968 |  |  |  | 2,092 |  |  |  | 9 |  |  |  | 14,029 |
Additions through Business combinations |  |  | — |  |  |  | — |  |  |  | 392 |  |  |  | 2 |  |  |  | — |  |  |  | 394 |
Disposals |  |  | — |  |  |  | (85 | ) |  |  | (2,467 | ) |  |  | (201 | ) |  |  | (130 | ) |  |  | (2,883 | )
As at December 31, 2019 |  | ₹ | 3,756 |  |  | ₹ | 29,401 |  |  | ₹ | 97,728 |  |  | ₹ | 18,478 |  |  | ₹ | 829 |  |  | ₹ | 150,192 |
Accumulated depreciation: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As at April 1, 2019 |  |  | — |  |  | ₹ | 6,715 |  |  | ₹ | 73,188 |  |  | ₹ | 12,593 |  |  | ₹ | 682 |  |  | ₹ | 93,178 |
Reclassified on adoption of IFRS 16 |  |  | — |  |  |  | — |  |  |  | (2,177 | ) |  |  | — |  |  |  | — |  |  |  | (2,177 | )
Adjusted balance as at April 1, 2019 |  |  | — |  |  |  | 6,715 |  |  |  | 71,011 |  |  |  | 12,593 |  |  |  | 682 |  |  |  | 91,001 |
Translation adjustment |  |  | — |  |  |  | 35 |  |  |  | 651 |  |  |  | 52 |  |  |  | 1 |  |  |  | 739 |
Depreciation |  |  | — |  |  |  | 970 |  |  |  | 6,281 |  |  |  | 1,152 |  |  |  | 142 |  |  |  | 8,545 |
Disposals |  |  | — |  |  |  | (24 | ) |  |  | (1,960 | ) |  |  | (40 | ) |  |  | (113 | ) |  |  | (2,137 | )
As at December 31, 2019 |  | ₹ | — |  |  | ₹ | 7,696 |  |  | ₹ | 75,983 |  |  | ₹ | 13,757 |  |  | ₹ | 712 |  |  | ₹ | 98,148 |
Capital work-in-progress |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | ₹ | 26,508 |
Net carrying value including Capital work-in-progress as at December 31, 2019 |  |  | ₹ | 78,552 |

* | Includes computer equipment and software.

** | Includes impairment charge on software platform recognized on acquisitions, amounting to ₹1,480 for the year ended March 31, 2019, forming part of Cost of Revenues in the consolidated statement of income.

5. Right-of-use assets

|  | Land |  |  | Buildings |  |  | Plant and machinery * |  |  | Vehicles |  |  | Total |
Gross carrying value: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
As at April 1, 2019 ** |  | ₹ | 2,003 |  |  | ₹ | 11,371 |  |  | ₹ | 2,874 |  |  | ₹ | 649 |  |  | ₹ | 16,897 |
Additions |  |  | — |  |  |  | 1,264 |  |  |  | 1,132 |  |  |  | 208 |  |  |  | 2,604 |
Additions through Business combinations |  |  | — |  |  |  | 197 |  |  |  | — |  |  |  | — |  |  |  | 197 |
Disposals |  |  | — |  |  |  | (27 | ) |  |  | (47 | ) |  |  | (45 | ) |  |  | (119 | )
Translation adjustment |  |  | — |  |  |  | 189 |  |  |  | 60 |  |  |  | 8 |  |  |  | 257 |
As at December 31, 2019 |  | ₹ | 2,003 |  |  | ₹ | 12,994 |  |  | ₹ | 4,019 |  |  | ₹ | 820 |  |  | ₹ | 19,836 |
Accumulated depreciation: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation |  |  | 21 |  |  |  | 2,685 |  |  |  | 1,256 |  |  |  | 199 |  |  |  | 4,161 |
Disposals |  |  | — |  |  |  | (18 | ) |  |  | (47 | ) |  |  | (4 | ) |  |  | (69 | )
Translation adjustment |  |  | — |  |  |  | 24 |  |  |  | 12 |  |  |  | 2 |  |  | ₹ | 38 |
As at December 31, 2019 |  | ₹ | 21 |  |  | ₹ | 2,691 |  |  | ₹ | 1,221 |  |  | ₹ | 197 |  |  | ₹ | 4,130 |
Net carrying value as at December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | ₹ | 15,706 |

* | Includes computer equipment.

** | Includes net carrying value of property, plant and equipment under finance lease arrangement.

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6. Goodwill and intangible assets

The movement in goodwill balance is given below:

|  | For the period ended |
|  | March 31, 2019 |  |  | December 31, 2019 |
Balance at the beginning of the year |  | ₹ | 117,584 |  |  | ₹ | 116,980 |
Translation adjustment |  |  | 4,529 |  |  |  | 3,558 |
Acquisition through business combination, net |  |  | — |  |  |  | 3,168 |
Disposal |  |  | (4,893 | ) |  |  | — |
Assets reclassified as held for sale |  |  | (240 | ) |  |  | — |
Balance at the end of the period |  | ₹ | 116,980 |  |  | ₹ | 123,706 |

The movement in intangible assets is given below:

|  | Intangible assets |
|  | Customer related |  |  | Marketing related |  |  | Total |
Gross carrying value: |  |  |  |  |  |  |  |  |  |  |  |
As at April 1, 2018 |  | ₹ | 26,586 |  |  | ₹ | 6,551 |  |  | ₹ | 33,137 |
Translation adjustment |  |  | 633 |  |  |  | 320 |  |  |  | 953 |
As at December 31, 2018 |  | ₹ | 27,219 |  |  | ₹ | 6,871 |  |  | ₹ | 34,090 |
Accumulated amortization/ impairment: |  |  |  |  |  |  |  |  |  |  |  |
As at April 1, 2018 |  | ₹ | 12,263 |  |  | ₹ | 2,761 |  |  | ₹ | 15,024 |
Translation adjustment |  |  | 58 |  |  |  | 95 |  |  |  | 153 |
Amortization and impairment * |  |  | 2,607 |  |  |  | 861 |  |  |  | 3,468 |
As at December 31, 2018 |  | ₹ | 14,928 |  |  | ₹ | 3,717 |  |  | ₹ | 18,645 |
Net carrying value as at December 31, 2018 |  | ₹ | 12,291 |  |  | ₹ | 3,154 |  |  | ₹ | 15,445 |
Gross carrying value: |  |  |  |  |  |  |  |  |  |  |  |
As at April 1, 2018 |  | ₹ | 26,586 |  |  | ₹ | 6,551 |  |  | ₹ | 33,137 |
Translation adjustment |  |  | 555 |  |  |  | 217 |  |  |  | 772 |
Disposal |  |  | (217 | ) |  |  | (823 | ) |  |  | (1,040 | )
As at March 31, 2019 |  | ₹ | 26,924 |  |  | ₹ | 5,945 |  |  | ₹ | 32,869 |
Accumulated amortization/ impairment: |  |  |  |  |  |  |  |  |  |  |  |
As at April 1, 2018 |  | ₹ | 12,263 |  |  | ₹ | 2,761 |  |  | ₹ | 15,024 |
Translation adjustment |  |  | 35 |  |  |  | 64 |  |  |  | 99 |
Amortization and impairment * |  |  | 3,148 |  |  |  | 1,136 |  |  |  | 4,284 |
Disposal |  |  | (101 | ) |  |  | (199 | ) |  |  | (300 | )
As at March 31, 2019 |  | ₹ | 15,345 |  |  | ₹ | 3,762 |  |  | ₹ | 19,107 |
Net carrying value as at March 31, 2019 |  | ₹ | 11,579 |  |  | ₹ | 2,183 |  |  | ₹ | 13,762 |
Gross carrying value: |  |  |  |  |  |  |  |  |  |  |  |
As at April 1, 2019 |  | ₹ | 26,924 |  |  | ₹ | 5,945 |  |  | ₹ | 32,869 |
Translation adjustment |  |  | 520 |  |  |  | 129 |  |  |  | 649 |
Acquisition through business combinations |  |  | 2,618 |  |  |  | 102 |  |  |  | 2,720 |
As at December 31, 2019 |  | ₹ | 30,062 |  |  | ₹ | 6,176 |  |  | ₹ | 36,238 |
Accumulated amortization: |  |  |  |  |  |  |  |  |  |  |  |
As at April 1, 2019 |  | ₹ | 15,345 |  |  | ₹ | 3,762 |  |  | ₹ | 19,107 |
Translation adjustment |  |  | 71 |  |  |  | 70 |  |  |  | 141 |
Amortization |  |  | 1,667 |  |  |  | 691 |  |  |  | 2,358 |
As at December 31, 2019 |  | ₹ | 17,083 |  |  | ₹ | 4,523 |  |  | ₹ | 21,606 |
Net carrying value as at December 31, 2019 |  | ₹ | 12,979 |  |  | ₹ | 1,653 |  |  | ₹ | 14,632 |

* | Includes impairment charge on certain intangible assets recognized on acquisitions, amounting to ₹838 for the nine months ended December 31, 2018 and year ended March 31, 2019.

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

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7. Business combinations:

During the period ended December 31, 2019, the Company has completed two business combinations (which individually are not material) for a total consideration of ₹6,533. These include (a) taking over customer contracts, leased facilities, assets and employees of Vara Infotech Private Limited and (b) acquisition of International TechneGroup Incorporated, a global digital engineering and manufacturing solutions Company. The following table presents the provisional purchase price allocation:

Description |  | Purchase price allocated |
Net assets |  | ₹ | 858 |
Customer related intangibles |  |  | 2,618 |
Marketing related intangibles |  |  | 102 |
Deferred tax liabilities on intangible assets |  |  | (213 | )
Total |  | ₹ | 3,365 |
Goodwill |  |  | 3,168 |
Total purchase price |  | ₹ | 6,533 |

Net assets acquired include ₹152 of cash and cash equivalents.

The goodwill of ₹3,168 comprises value of acquired workforce and expected synergies arising from the business combinations. Goodwill is partially deductible for Indian income tax purpose.

The pro-forma effects of these business combinations on the Company’s results were not material.

8. Investments

Investments consist of the followings:

|  | As at |
|  | March 31, 2019 |  |  | December 31, 2019 |
Non-current |  |  |  |  |  |  |  |
Financial instruments at FVTOCI |  |  |  |  |  |  |  |
Equity instruments |  | ₹ | 6,916 |  |  | ₹ | 9,045 |
|  | ₹ | 6,916 |  |  | ₹ | 9,045 |
Current |  |  |  |  |  |  |  |
Financial instruments at FVTPL |  |  |  |  |  |  |  |
Investments in liquid and short-term mutual funds |  | ₹ | 13,960 |  |  | ₹ | 29,328 |
Financial instruments at FVTOCI |  |  |  |  |  |  |  |
Commercial paper, Certificate of deposits and Bonds |  |  | 185,048 |  |  |  | 109,837 |
Financial instruments at amortized cost |  |  |  |  |  |  |  |
Inter corporate and term deposits * |  |  | 21,708 |  |  |  | 25,091 |
|  | ₹ | 220,716 |  |  | ₹ | 164,256 |
|  | ₹ | 227,632 |  |  | ₹ | 173,301 |

* | These deposits earn a fixed rate of interest. Term deposits include deposits in lien with banks amounting to ₹786 (March 31, 2019: ₹463).

9. Inventories

Inventories consist of the following:

|  | As at |
|  | March 31, 2019 |  |  | December 31, 2019 |
Stores and spare parts |  | ₹ | 677 |  |  | ₹ | 603 |
Finished and traded goods |  |  | 3,274 |  |  |  | 1,460 |
|  | ₹ | 3,951 |  |  | ₹ | 2,063 |

10. Cash and cash equivalents:

Cash and cash equivalents as at March 31, 2019 and December 31, 2019, consists of cash and balance in deposits with banks. Cash and cash equivalents consist of the followings:

|  | As at |
|  | March 31, 2019 |  |  | December 31, 2019 |
Cash and bank balances |  | ₹ | 41,966 |  |  | ₹ | 40,022 |
Demand deposits with banks * |  |  | 116,563 |  |  |  | 146,615 |
|  | ₹ | 158,529 |  |  | ₹ | 186,637 |

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

14

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

|  | Nine months ended December 31, |
|  | 2018 |  |  | 2019 |
Cash and cash equivalents |  | ₹ | 142,769 |  |  | ₹ | 186,637 |
Bank overdrafts |  |  | — |  |  |  | (1,102 | )
|  | ₹ | 142,769 |  |  | ₹ | 185,535 |

11. Other financial assets

|  | As at |
|  | March 31, 2019 |  |  | December 31, 2019 |
Non-current |  |  |  |  |  |  |  |
Security deposits |  | ₹ | 1,436 |  |  | ₹ | 1,348 |
Interest receivables |  |  | 1,139 |  |  |  | 1,139 |
Finance lease receivables |  |  | 1,794 |  |  |  | 1,723 |
Other deposits |  |  | 777 |  |  |  | 580 |
|  | ₹ | 5,146 |  |  | ₹ | 4,790 |
Current |  |  |  |  |  |  |  |
Security deposits |  | ₹ | 1,050 |  |  | ₹ | 1,172 |
Due from officers and employees |  |  | 738 |  |  |  | 1,182 |
Finance lease receivables |  |  | 1,618 |  |  |  | 2,207 |
Interest receivables |  |  | 1,789 |  |  |  | 3,069 |
Other deposits |  |  | 33 |  |  |  | 11 |
Others |  |  | 9,383 |  |  |  | 1,897 |
|  | ₹ | 14,611 |  |  | ₹ | 9,538 |
|  | ₹ | 19,757 |  |  | ₹ | 14,328 |

12. Other assets

|  | As at |
|  | March 31, 2019 |  |  | December 31, 2019 |
Non-current |  |  |  |  |  |  |  |
Prepaid expenses |  | ₹ | 6,323 |  |  | ₹ | 4,179 |
Costs to obtain contract |  |  | 4,212 |  |  |  | 4,175 |
Costs to fulfil contract |  |  | — |  |  |  | 270 |
Others |  |  | 5,337 |  |  |  | 3,028 |
|  | ₹ | 15,872 |  |  | ₹ | 11,652 |
Current |  |  |  |  |  |  |  |
Prepaid expenses |  | ₹ | 12,148 |  |  | ₹ | 10,787 |
Due from officers and employees |  |  | 871 |  |  |  | 470 |
Advance to suppliers |  |  | 3,247 |  |  |  | 2,349 |
Balance with GST and other authorities |  |  | 5,543 |  |  |  | 6,965 |
Costs to obtain contract |  |  | 1,170 |  |  |  | 1,302 |
Others |  |  | 107 |  |  |  | 126 |
|  | ₹ | 23,086 |  |  | ₹ | 21,999 |
|  | ₹ | 38,958 |  |  | ₹ | 33,651 |

13. Loans and borrowings

|  | As at |
|  | March 31, 2019 |  |  | December 31, 2019 |
Borrowings from banks |  | ₹ | 96,979 |  |  | ₹ | 93,162 |
Bank overdrafts |  |  | 4 |  |  |  | 1,102 |
Obligations under finance leases (Refer Note 3) |  |  | 2,002 |  |  |  | — |
Loans from institutions other than bank |  |  | 482 |  |  |  | 415 |
|  | ₹ | 99,467 |  |  | ₹ | 94,679 |
Non-current |  |  | 28,368 |  |  |  | 22,299 |
Current |  |  | 71,099 |  |  |  | 72,380 |

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14. Other financial liabilities

|  | As at |
|  | March 31, 2019 |  |  | December 31, 2019 |
Non-current |  |  |  |  |  |  |  |
Deposits and others |  | ₹ | — |  |  | ₹ | 5 |
|  | ₹ | — |  |  | ₹ | 5 |
Current |  |  |  |  |  |  |  |
Deposits and others |  | ₹ | 644 |  |  | ₹ | 604 |
|  | ₹ | 644 |  |  | ₹ | 604 |
|  | ₹ | 644 |  |  | ₹ | 609 |

15. Other liabilities

|  | As at |
|  | March 31, 2019 |  |  | December 31, 2019 |
Non-current |  |  |  |  |  |  |  |
Employee benefits obligations |  | ₹ | 2,083 |  |  | ₹ | 2,294 |
Others |  |  | 3,175 |  |  |  | 3,858 |
|  | ₹ | 5,258 |  |  | ₹ | 6,152 |
Current |  |  |  |  |  |  |  |
Statutory and other liabilities |  | ₹ | 5,430 |  |  | ₹ | 5,904 |
Employee benefits obligations |  |  | 10,065 |  |  |  | 10,770 |
Advance from customers |  |  | 1,361 |  |  |  | 1,596 |
Others |  |  | 1,190 |  |  |  | 479 |
|  | ₹ | 18,046 |  |  | ₹ | 18,749 |
|  | ₹ | 23,304 |  |  | ₹ | 24,901 |

16. Provisions

|  | As at |
|  | March 31, 2019 |  |  | December 31, 2019 |
Non-current |  |  |  |  |  |  |  |
Provision for warranty |  | ₹ | 2 |  |  | ₹ | 2 |
|  | ₹ | 2 |  |  | ₹ | 2 |
Current |  |  |  |  |  |  |  |
Provision for warranty |  | ₹ | 275 |  |  | ₹ | 320 |
Others |  |  | 363 |  |  |  | 204 |
|  | ₹ | 638 |  |  | ₹ | 524 |
|  | ₹ | 640 |  |  | ₹ | 526 |

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.

17. 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.

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

|  | (in millions) |
|  | As at |
|  | March 31, 2019 |  |  | December 31, 2019 |
|  | Notional |  |  | Fair value |  |  | Notional |  |  | Fair value |
Designated derivatives instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sell: Forward contracts |  | USD | 333 |  |  | ₹ | 1,410 |  |  | USD | 722 |  |  | ₹ | 443 |
|  | € | — |  |  |  | — |  |  | € | 82 |  |  | ₹ | (45 | )
|  | £ | — |  |  |  | — |  |  | £ | 11 |  |  | ₹ | (51 | )
|  | AUD | 97 |  |  | ₹ | 15 |  |  | AUD | 116 |  |  | ₹ | (98 | )
Range forward options contracts |  | USD | 1,067 |  |  | ₹ | 1,149 |  |  | USD | 656 |  |  | ₹ | 238 |
|  | £ | 191 |  |  | ₹ | 68 |  |  | £ | 142 |  |  | ₹ | (398 | )
|  | € | 153 |  |  | ₹ | 349 |  |  | € | 78 |  |  | ₹ | 60 |
|  | AUD | 56 |  |  | ₹ | 39 |  |  | AUD | 35 |  |  | ₹ | 16 |
Interest rate swaps |  | USD | 75 |  |  | ₹ | (11 | ) |  | USD | 75 |  |  | ₹ | (11 | )
Non-designated derivatives instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sell: Forward contracts |  | USD | 1,182 |  |  | ₹ | 1,359 |  |  | USD | 1,322 |  |  | ₹ | 78 |
|  | € | 32 |  |  | ₹ | 55 |  |  | € | 43 |  |  | ₹ | (28 | )
|  | £ | 1 |  |  | ₹ | (1 | ) |  | £ | 77 |  |  | ₹ | (191 | )
|  | AUD | 82 |  |  | ₹ | 28 |  |  | AUD | 64 |  |  | ₹ | (56 | )
|  | SGD | 11 |  |  | ₹ | 1 |  |  | SGD | 3 |  |  | ₹ | (2 | )
|  | ZAR | 56 |  |  | ₹ | 14 |  |  | ZAR | 17 |  |  | ₹ | (1 | )
|  | CAD | 56 |  |  | ₹ | 40 |  |  | CAD | 55 |  |  | ₹ | (33 | )
|  | SAR | 123 |  |  | ₹ | (1 | ) |  | SAR | 38 |  |  |  |  | ^
|  | AED | 9 |  |  |  |  | ^ |  | AED | 9 |  |  |  |  | ^
|  | PLN | 38 |  |  | ₹ | 15 |  |  | PLN | 10 |  |  | ₹ | (3 | )
|  | CHF | 10 |  |  |  |  | ^ |  | CHF | 13 |  |  | ₹ | (13 | )
|  | QAR | 3 |  |  | ₹ | (1 | ) |  | QAR | 19 |  |  | ₹ | (7 | )
|  | TRY | 28 |  |  | ₹ | 12 |  |  | TRY | 30 |  |  | ₹ | 7 |
|  | NOK | 29 |  |  | ₹ | 4 |  |  | NOK | 19 |  |  | ₹ | (6 | )
|  | OMR | 1 |  |  | ₹ | (1 | ) |  | OMR | 2 |  |  |  |  | ^
|  | SEK | 35 |  |  | ₹ | 5 |  |  | SEK | 39 |  |  | ₹ | (9 | )
|  | MYR | — |  |  |  | — |  |  | MYR | 20 |  |  | ₹ | (8 | )
Range forward options contracts |  | USD | 150 |  |  | ₹ | 161 |  |  | USD | — |  |  |  | — |
|  | € | 31 |  |  | ₹ | 12 |  |  | € | — |  |  |  | — |
|  | £ | 71 |  |  | ₹ | 57 |  |  | £ | — |  |  |  | — |
Buy : Forward contracts |  | USD | 730 |  |  | ₹ | (971 | ) |  | USD | 716 |  |  | ₹ | (114 | )
|  | JPY | 154 |  |  |  |  | ^ |  | JPY | — |  |  |  | — |
|  | MXN | 9 |  |  |  |  | ^ |  | MXN | 11 |  |  | ₹ | 1 |
|  | DKK | 75 |  |  | ₹ | (13 | ) |  | DKK | 34 |  |  | ₹ | 6 |
|  |  |  |  |  | ₹ | 3,794 |  |  |  |  |  |  | ₹ | (225 | )

^ | Value is less than ₹1.

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

|  | Nine months ended December 31, |
|  | 2018 |  |  | 2019 |
Balance as at the beginning of the period |  | ₹ | (143 | ) |  | ₹ | 3,019 |
Deferred cancellation gain/(loss), net |  |  | 6 |  |  |  | (206 | )
Changes in fair value of effective portion of derivatives |  |  | (438 | ) |  |  | (198 | )
Net gain/(loss) reclassified to interim condensed consolidated statement of income on occurrence of hedged transactions |  |  | 2,133 |  |  |  | (2,667 | )
Gain/(loss) on cash flow hedging derivatives, net |  | ₹ | 1,701 |  |  | ₹ | (3,071 | )
Balance as at the end of the period |  |  | 1,558 |  |  |  | (52 | )
Deferred tax thereon |  |  | (310 | ) |  |  | (33 | )
Balance as at the end of the period, net of deferred tax |  | ₹ | 1,248 |  |  | ₹ | (85 | )

As at December 31, 2018, March 31, 2019 and December 31, 2019, 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.

18. Fair value:

Financial assets and liabilities include cash and cash equivalents, trade receivables, unbilled receivables, finance lease receivables, employee and other advances and eligible current and non-current assets, long and short-term loans and borrowings, lease liability, bank overdrafts, trade payable, eligible current liabilities and non-current liabilities.

The fair value of cash and cash equivalents, trade receivables, unbilled receivables, 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

17

receivables that are overdue are periodically evaluated based on credit worthiness of customers. Based on this evaluation, the Company records allowance for estimated losses on these receivables. As at March 31, 2019 and December 31, 2019, 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).

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

|  | As at March 31, 2019 |  |  | As at December 31, 2019 |
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 |  |  | 3,149 |  |  |  | — |  |  |  | 3,149 |  |  |  | — |  |  |  | 972 |  |  |  | — |  |  |  | 972 |  |  |  | — |
Others |  |  | 1,955 |  |  |  | — |  |  |  | 1,955 |  |  |  | — |  |  |  | 380 |  |  |  | — |  |  |  | 380 |  |  |  | — |
Investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Investment in liquid and short-term mutual funds |  |  | 13,960 |  |  |  | 13,960 |  |  |  | — |  |  |  | — |  |  |  | 29,328 |  |  |  | 29,328 |  |  |  | — |  |  |  | — |
Investment in equity instruments |  |  | 6,916 |  |  |  | — |  |  |  | 248 |  |  |  | 6,668 |  |  |  | 9,045 |  |  |  | — |  |  |  | 256 |  |  |  | 8,789 |
Commercial paper, Certificate of deposits and bonds |  |  | 185,048 |  |  |  | 6,865 |  |  |  | 178,183 |  |  |  | — |  |  |  | 109,837 |  |  |  | 9,755 |  |  |  | 100,082 |  |  |  | — |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative instruments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash flow hedges |  |  | (130 | ) |  |  | — |  |  |  | (130 | ) |  |  | — |  |  |  | (818 | ) |  |  | — |  |  |  | (818 | ) |  |  | — |
Others |  |  | (1,180 | ) |  |  | — |  |  |  | (1,180 | ) |  |  | — |  |  |  | (759 | ) |  |  | — |  |  |  | (759 | ) |  |  | — |

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 derivative financial instruments with various counterparties, 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 December 31, 2019, 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

|  | As at |
Investment in equity instruments |  | March 31, 2019 |  |  | December 31, 2019 |
Balance at the beginning of the period |  | ₹ | 5,685 |  |  | ₹ | 6,668 |
Additions |  |  | 2,869 |  |  |  | 1,351 |
Transfers out of Level 3 |  |  | (647 | ) |  |  | — |
Disposal |  |  | (1,341 | ) |  |  | (143 | )
Gain/(loss) recognized in foreign currency translation reserve |  |  | 203 |  |  |  | 290 |
Gain/(loss) recognized in other comprehensive income |  |  | (101 | ) |  |  | 623 |
Balance at the end of the period |  | ₹ | 6,668 |  |  | ₹ | 8,789 |

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19. Foreign currency translation reserve

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

|  | Nine months ended December 31, |
|  | 2018 |  |  | 2019 |
Balance at the beginning of the period |  | ₹ | 16,618 |  |  | ₹ | 15,250 |
Translation difference related to foreign operations, net |  |  | 4,453 |  |  |  | 3,924 |
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 |  |  | (287 | ) |  |  | — |
Total change during the period |  |  | 35 |  |  |  | 3,924 |
Balance at the end of the period |  | ₹ | 16,653 |  |  | ₹ | 19,174 |

20. Income taxes

Income tax expenses has been allocated as follows:

|  | Three months ended December 31, |  |  | Nine months ended December 31, |
|  | 2018 |  |  | 2019 |  |  | 2018 |  |  | 2019 |
Income tax expense as per the interim condensed consolidated statement of income |  | ₹ | 6,966 |  |  | ₹ | 6,164 |  |  | ₹ | 18,178 |  |  | ₹ | 18,594 |
Income tax included in Other comprehensive income on: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unrealized gains/ (losses) on investment securities |  |  | 426 |  |  |  | (47 | ) |  |  | (308 | ) |  |  | (275 | )
Gains/(losses) on cash flow hedging derivatives |  |  | 1,141 |  |  |  | (449 | ) |  |  | 339 |  |  |  | (571 | )
Defined benefit plan actuarial gains/(losses) |  |  | (65 | ) |  |  | (43 | ) |  |  | 51 |  |  |  | (61 | )
|  | ₹ | 8,468 |  |  | ₹ | 5,625 |  |  | ₹ | 18,260 |  |  | ₹ | 17,687 |

Income tax expenses consists of the following:

|  | Three months ended December 31, |  |  | Nine months ended December 31, |
|  | 2018 |  |  | 2019 |  |  | 2018 |  |  | 2019 |
Current taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Domestic |  | ₹ | 5,342 |  |  | ₹ | 3,914 |  |  | ₹ | 13,679 |  |  | ₹ | 12,478 |
Foreign |  |  | 1,878 |  |  |  | 1,814 |  |  |  | 5,462 |  |  |  | 5,510 |
|  |  | 7,220 |  |  |  | 5,728 |  |  |  | 19,141 |  |  |  | 17,988 |
Deferred taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Domestic |  |  | (315 | ) |  |  | 845 |  |  |  | (856 | ) |  |  | 1,176 |
Foreign |  |  | 61 |  |  |  | (409 | ) |  |  | (107 | ) |  |  | (570 | )
|  |  | (254 | ) |  |  | 436 |  |  |  | (963 | ) |  |  | 606 |
|  | ₹ | 6,966 |  |  | ₹ | 6,164 |  |  | ₹ | 18,178 |  |  | ₹ | 18,594 |

Income tax expenses are net of (provision recorded) / reversal of provisions pertaining to earlier periods, amounting to ₹270 and ₹1,263 for the three months ended December 31, 2018 and 2019, and ₹(133) and ₹6,516 for the nine months ended December 31, 2018 and 2019 respectively.

21. Revenues

|  | Three months ended December 31, |  |  | Nine months ended December 31, |
|  | 2018 |  |  | 2019 |  |  | 2018 |  |  | 2019 |
Rendering of services |  | ₹ | 147,436 |  |  | ₹ | 152,103 |  |  | ₹ | 425,063 |  |  | ₹ | 444,718 |
Sales of products |  |  | 3,159 |  |  |  | 2,602 |  |  |  | 10,719 |  |  |  | 8,404 |
|  | ₹ | 150,595 |  |  | ₹ | 154,705 |  |  | ₹ | 435,782 |  |  | ₹ | 453,122 |

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22. Expenses by nature

|  | Three months ended December 31, |  |  | Nine months ended December 31, |
|  | 2018 |  |  | 2019 |  |  | 2018 |  |  | 2019 |
Employee compensation |  | ₹ | 76,129 |  |  | ₹ | 82,381 |  |  | ₹ | 222,387 |  |  | ₹ | 241,123 |
Sub-contracting/ technical fees |  |  | 24,030 |  |  |  | 22,764 |  |  |  | 70,791 |  |  |  | 67,750 |
Cost of hardware and software |  |  | 2,883 |  |  |  | 2,702 |  |  |  | 10,225 |  |  |  | 8,381 |
Travel |  |  | 4,688 |  |  |  | 4,956 |  |  |  | 13,305 |  |  |  | 14,138 |
Facility expenses |  |  | 5,227 |  |  |  | 4,881 |  |  |  | 16,375 |  |  |  | 14,662 |
Depreciation, amortization and impairment* |  |  | 5,172 |  |  |  | 5,295 |  |  |  | 13,879 |  |  |  | 15,064 |
Communication |  |  | 1,011 |  |  |  | 1,213 |  |  |  | 3,464 |  |  |  | 3,495 |
Legal and professional fees |  |  | 1,282 |  |  |  | 1,142 |  |  |  | 3,731 |  |  |  | 3,477 |
Rates, taxes and insurance |  |  | 601 |  |  |  | 692 |  |  |  | 1,110 |  |  |  | 1,853 |
Marketing and brand building |  |  | 696 |  |  |  | 690 |  |  |  | 1,970 |  |  |  | 1,953 |
Lifetime expected credit loss and provision for deferred contract cost |  |  | (789 | ) |  |  | (72 | ) |  |  | 1,254 |  |  |  | 649 |
Miscellaneous expenses** |  |  | 1,908 |  |  |  | 1,555 |  |  |  | 10,398 |  |  |  | 4,161 |
Total cost of revenues, selling and marketing expenses and general and administrative expenses |  | ₹ | 122,838 |  |  | ₹ | 128,199 |  |  | ₹ | 368,889 |  |  | ₹ | 376,706 |

* | Depreciation, amortization and impairment includes impairment on certain intangible assets recognized on acquisitions, amounting to ₹838 for the three months and nine months ended December 31, 2018.

** | Miscellaneous expenses for the nine months ended December 31, 2018, includes an amount of ₹5,141 ($ 75 million) paid to National Grid on settlement of a legal claim against the company.

23. Finance expense

|  | Three months ended December 31, |  |  | Nine months ended December 31, |
|  | 2018 |  |  | 2019 |  |  | 2018 |  |  | 2019 |
Interest expense |  | ₹ | 1,161 |  |  | ₹ | 1,267 |  |  | ₹ | 3,497 |  |  | ₹ | 3,968 |
Exchange fluctuation on foreign currency borrowings, net |  |  | 466 |  |  |  | 577 |  |  |  | 1,348 |  |  |  | 1,707 |
|  | ₹ | 1,627 |  |  | ₹ | 1,844 |  |  | ₹ | 4,845 |  |  | ₹ | 5,675 |

24. Finance and other income

|  | Three months ended December 31, |  |  | Nine months ended December 31, |
|  | 2018 |  |  | 2019 |  |  | 2018 |  |  | 2019 |
Interest income |  | ₹ | 4,638 |  |  | ₹ | 4,969 |  |  | ₹ | 13,704 |  |  | ₹ | 17,277 |
Dividend income |  |  | 90 |  |  |  | 73 |  |  |  | 275 |  |  |  | 262 |
Net gain from investments classified as FVTPL |  |  | 680 |  |  |  | 245 |  |  |  | 1,664 |  |  |  | 983 |
Net gain from investments classified as FVTOCI |  |  | (46 | ) |  |  | 83 |  |  |  | 52 |  |  |  | 652 |
|  | ₹ | 5,362 |  |  | ₹ | 5,370 |  |  | ₹ | 15,695 |  |  | ₹ | 19,174 |

25. Foreign exchange gains/(lossses), net

|  | Three months ended December 31, |  |  | Nine months ended December 31, |
|  | 2018 |  |  | 2019 |  |  | 2018 |  |  | 2019 |
Foreign exchange gains/(losses), net on financial instrument measured at FVTPL |  | ₹ | 4,504 |  |  | ₹ | (367 | ) |  | ₹ | 1 |  |  | ₹ | 2,207 |
Other Foreign exchange gains/(losses), net |  |  | (3,593 | ) |  |  | 1,094 |  |  |  | 2,898 |  |  |  | (31 | )
|  | ₹ | 911 |  |  | ₹ | 727 |  |  | ₹ | 2,899 |  |  | ₹ | 2,176 |

26. Earnings per share:

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

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

|  | Three months ended December 31, |  |  | Nine months ended December 31, |
|  | 2018 |  |  | 2019 |  |  | 2018 |  |  | 2019 |
Profit attributable to equity holders of the Company |  | ₹ | 25,103 |  |  | ₹ | 24,558 |  |  | ₹ | 65,198 |  |  | ₹ | 73,958 |
Weighted average number of equity shares outstanding |  |  | 6,006,062,585 |  |  |  | 5,692,132,118 |  |  |  | 6,006,193,456 |  |  |  | 5,879,588,157 |
Basic earnings per share |  | ₹ | 4.18 |  |  | ₹ | 4.31 |  |  | ₹ | 10.86 |  |  | ₹ | 12.58 |

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.

20

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

|  | Three months ended December 31, |  |  | Nine months ended December 31, |
|  | 2018 |  |  | 2019 |  |  | 2018 |  |  | 2019 |
Profit attributable to equity holders of the Company |  | ₹ | 25,103 |  |  | ₹ | 24,558 |  |  | ₹ | 65,198 |  |  | ₹ | 73,958 |
Weighted average number of equity shares outstanding |  |  | 6,006,062,585 |  |  |  | 5,692,132,118 |  |  |  | 6,006,193,456 |  |  |  | 5,879,588,157 |
Effect of dilutive equivalent share options |  |  | 14,608,716 |  |  |  | 11,132,923 |  |  |  | 13,946,673 |  |  |  | 13,378,749 |
Weight average number of equity shares for diluted earnings per share |  |  | 6,020,671,301 |  |  |  | 5,703,265,041 |  |  |  | 6,020,140,129 |  |  |  | 5,892,966,906 |
Diluted earnings per share |  | ₹ | 4.17 |  |  | ₹ | 4.30 |  |  | ₹ | 10.83 |  |  | ₹ | 12.55 |

Earnings per share and the number of shares outstanding for the three and nine months ended December 31, 2018 have been proportionately adjusted for the bonus issue in the ratio of 1:3 i.e. 1 (one) bonus equity share of ₹2 each for every 3 (three) fully paid-up equity shares held (including ADS holders).

27. Employee benefits

Employee costs includes

|  | Three months ended December 31, |  |  | Nine months ended December 31, |
|  | 2018 |  |  | 2019 |  |  | 2018 |  |  | 2019 |
Salaries and bonus |  | ₹ | 73,463 |  |  | ₹ | 79,871 |  |  | ₹ | 214,575 |  |  | ₹ | 232,870 |
Employee benefits plans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gratuity and other defined benefit plans |  |  | 346 |  |  |  | 334 |  |  |  | 941 |  |  |  | 1,053 |
Defined contribution plans |  |  | 1,825 |  |  |  | 2,176 |  |  |  | 5,492 |  |  |  | 6,301 |
Share based compensation |  |  | 495 |  |  |  | — |  |  |  | 1,379 |  |  |  | 899 |
|  | ₹ | 76,129 |  |  | ₹ | 82,381 |  |  | ₹ | 222,387 |  |  | ₹ | 241,123 |

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

|  | Three months ended December 31, |  |  | Nine months ended December 31, |
|  | 2018 |  |  | 2019 |  |  | 2018 |  |  | 2019 |
Cost of revenues |  | ₹ | 63,918 |  |  | ₹ | 70,509 |  |  | ₹ | 186,363 |  |  | ₹ | 205,785 |
Selling and marketing expenses |  |  | 7,759 |  |  |  | 7,851 |  |  |  | 23,212 |  |  |  | 23,134 |
General and administrative expenses |  |  | 4,452 |  |  |  | 4,021 |  |  |  | 12,812 |  |  |  | 12,204 |
|  | ₹ | 76,129 |  |  | ₹ | 82,381 |  |  | ₹ | 222,387 |  |  | ₹ | 241,123 |

The Company has granted 30,000 and 2,957,000 options under RSU option plan during the three and nine months ended December 31, 2019, respectively (30,000 and 2,995,000 for the three and nine months ended December 31, 2018); 40,000 and 2,710,400 options under ADS option plan during the three and nine months ended December 31, 2019, respectively (255,000 and 3,156,000 for three and nine months ended December 31, 2018).

The Company has also granted Nil and 2,244,500 Performance based stock options (RSU) during the three and nine months ended December 31, 2019, respectively (Nil and 1,567,000 for the three and nine months ended December 31, 2018); Nil and 2,440,600 Performance based stock options (ADS) during the three and nine months ended December 31, 2019, respectively (Nil and 1,673,000 for three and nine months ended December 31, 2018).

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).

28. Other operating income

Nine months ended December 31, 2018

Sale of hosted data center services business: During the nine months ended December 31, 2018, the Company had 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 was ₹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 was estimated to be insignificant as at December 31, 2018. Consequently, the sale consideration accounted represents cash proceeds of ₹24,024 and units amounting to ₹1,734 issued by the buyer.

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Loss of control in subsidiary: During the nine months ended December 31, 2018, the Company had reduced its equity holding from 74% to 11% in Wipro Airport IT Services Limited. The loss/ gain on this transaction is insignificant.

Nine months ended December 31, 2019

During the period ended December 31, 2019, the Company concluded the sale of assets pertaining to Workday and Cornerstone OnDemand business in Portugal, France and Sweden. Gain arising from such transaction ₹152 has been recognized under Other operating income.

During the period ended December 31, 2019, the Company has partially met the first-year business targets pertaining to sale of data center business concluded during the year ended March 31, 2019. Change in fair value of the callable units pertaining to achievement of the business targets amounting to ₹597 is recognized under Other operating income.

29. Commitments and contingencies

Capital commitments: As at March 31, 2019 and December 31, 2019 the Company had committed to spend approximately ₹12,443 and ₹13,612 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, 2019 and December 31, 2019, performance and financial guarantees provided by banks on behalf of the Company to the Indian Government, customers and certain other agencies amount to approximately ₹18,456 and ₹18,770 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 Bengaluru. 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 (including Nil interest), arising primarily on account of transfer pricing issues. The Company has filed an appeal before the Hon’ble ITAT, Bengaluru within the prescribed timelines.

For year ended March 31, 2015, the Company received the Final assessment order in October 2019 with an estimated demand of ₹1,347 (including Nil interest), arising primarily on account of Capitalization of wages. The Company has filed an appeal before the Hon’ble ITAT, Bengaluru within the prescribed timelines.

For year ended March 31, 2016, the Company received the Draft assessment order in December 2019 with an estimated demand of ₹704 (including Nil interest), arising primarily on account of Capitalization of wages. The Company will file objections before the Dispute Resolution Panel (Bengaluru) within the prescribed timelines.

For year ended March 31, 2007 to year ending March 31, 2012, the company has received tax demand of ₹227 (Including ₹102 interest) for non-deduction of tax at source on some payments. Company has already deposited the demand under protest. The Company received order issued by Income Tax Appellate Tribunal, Bengaluru rejecting company’s appeal. The Company has filed an appeal against the said order with the Hon’ble High Court of Karnataka within the prescribed timelines. Company is already having a favorable order on this issue from the Hon’ble High Court of Karnataka for earlier year.

22

Income tax demands against the Company amounting to ₹66,441 and ₹73,898 are not acknowledged as debt as at March 31, 2019 and December 31, 2019, 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 ₹8,477 and ₹9,370 as of March 31, 2019 and December 31, 2019. 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.

30. The Hon’ble Supreme Court of India, through a ruling in February 2019, provided interpretation on the components of Salary on which the Company and its employees are to contribute towards Provident Fund under the Employee’s Provident Fund Act. Based on the current evaluation, the Company believes it is not probable that certain components of Salary paid by the Company will be subject to contribution towards Provident Fund due to the Supreme Court order. The Company will continue to monitor and evaluate its position based on future events and developments.

31. Segment information

The Company is organized into the following operating segments: IT Services, IT Products and India State Run Enterprise segment (ISRE).

IT Services: The IT Services segment primarily consists of IT Service offerings to customers organized by industry verticals.

The industry verticals are as follows: Banking, Financial Services and Insurance (BFSI), Health Business unit (Health BU), 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.

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.

India State Run Enterprise segment (ISRE): This segment consists of IT Services offerings to entities/ departments owned or controlled by Government of India and/ or any State Governments.

The Chairman 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.

23

Information on reportable segment for the three months ended December 31, 2018, is as follows:

|  | IT Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  | BFSI |  |  | Health BU |  |  | CBU |  |  | ENU |  |  | TECH |  |  | MFG |  |  | COMM |  |  | Total |  |  | IT Products |  |  | ISRE |  |  | Reconciling Items |  |  | Total |
Revenue |  |  | 45,979 |  |  |  | 19,241 |  |  |  | 22,875 |  |  |  | 18,996 |  |  |  | 19,104 |  |  |  | 11,981 |  |  |  | 8,480 |  |  |  | 146,656 |  |  |  | 3,145 |  |  |  | 1,713 |  |  |  | (8 | ) |  |  | 151,506 |
Segment Result |  |  | 9,095 |  |  |  | 1,973 |  |  |  | 5,291 |  |  |  | 3,613 |  |  |  | 4,177 |  |  |  | 2,391 |  |  |  | 1,578 |  |  |  | 28,118 |  |  |  | 212 |  |  |  | (686 | ) |  |  | 48 |  |  |  | 27,692 |
Unallocated |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 976 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 976 |
Segment Result Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 29,094 |  |  |  | 212 |  |  |  | (686 | ) |  |  | 48 |  |  |  | 28,668 |
Finance expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (1,627 | )
Finance and other income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 5,362 |
Share of profit/ (loss) of associates accounted for using the equity method |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 7 |
Profit before tax |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 32,410 |
Income tax expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (6,966 | )
Profit for the period |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 25,444 |
Depreciation, amortization and impairment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 5,172 |

Information on reportable segment for the three months ended December 31, 2019, is as follows:

|  | IT Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  | BFSI |  |  | Health BU |  |  | CBU |  |  | ENU |  |  | TECH |  |  | MFG |  |  | COMM |  |  | Total |  |  | IT Products |  |  | ISRE |  |  | Reconciling Items |  |  | Total |
Revenue |  |  | 46,612 |  |  |  | 19,799 |  |  |  | 25,443 |  |  |  | 19,553 |  |  |  | 18,584 |  |  |  | 12,450 |  |  |  | 8,565 |  |  |  | 151,006 |  |  |  | 2,576 |  |  |  | 1,847 |  |  |  | 3 |  |  |  | 155,432 |
Segment Result |  |  | 8,246 |  |  |  | 3,186 |  |  |  | 4,725 |  |  |  | 3,130 |  |  |  | 3,256 |  |  |  | 2,385 |  |  |  | 1,444 |  |  |  | 26,372 |  |  |  | (140 | ) |  |  | (528 | ) |  |  | 169 |  |  |  | 25,873 |
Unallocated |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,360 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,360 |
Segment Result Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 27,732 |  |  |  | (140 | ) |  |  | (528 | ) |  |  | 169 |  |  |  | 27,233 |
Finance expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (1,844 | )
Finance and other income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 5,370 |
Share of profit/ (loss) of associates accounted for using the equity method |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 34 |
Profit before tax |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 30,793 |
Income tax expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (6,164 | )
Profit for the period |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 24,629 |
Depreciation and amortization |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 5,295 |

24

Information on reportable segment for the nine months ended December 31, 2018, is as follows:

|  | IT Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  | BFSI |  |  | Health BU |  |  | CBU |  |  | ENU |  |  | TECH |  |  | MFG |  |  | COMM |  |  | Total |  |  | IT Products |  |  | ISRE |  |  | Reconciling Items |  |  | Total |
Revenue |  |  | 129,219 |  |  |  | 55,793 |  |  |  | 65,646 |  |  |  | 54,202 |  |  |  | 58,189 |  |  |  | 34,945 |  |  |  | 24,394 |  |  |  | 422,388 |  |  |  | 9,553 |  |  |  | 6,757 |  |  |  | (17 | ) |  |  | 438,681 |
Other operating income |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,798 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,798 |
Segment Result |  |  | 24,182 |  |  |  | 6,698 |  |  |  | 12,112 |  |  |  | 4,294 |  |  |  | 12,885 |  |  |  | 6,065 |  |  |  | 3,411 |  |  |  | 69,647 |  |  |  | (954 | ) |  |  | (1,054 | ) |  |  | 172 |  |  |  | 67,811 |
Unallocated |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,981 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,981 |
Segment Result Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 74,426 |  |  |  | (954 | ) |  |  | (1,054 | ) |  |  | 172 |  |  |  | 72,590 |
Finance expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (4,845 | )
Finance and other income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 15,695 |
Share of profit/ (loss) of associates accounted for using the equity method |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (26 | )
Profit before tax |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 83,414 |
Income tax expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (18,178 | )
Profit for the period |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 65,236 |
Depreciation, amortization and impairment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 13,879 |

Information on reportable segment for the nine months ended December 31, 2019, is as follows:

|  | IT Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  | BFSI |  |  | Health BU |  |  | CBU |  |  | ENU |  |  | TECH |  |  | MFG |  |  | COMM |  |  | Total |  |  | IT Products |  |  | ISRE |  |  | Reconciling Items |  |  | Total |
Revenue |  |  | 137,767 |  |  |  | 57,651 |  |  |  | 71,339 |  |  |  | 56,873 |  |  |  | 56,392 |  |  |  | 35,672 |  |  |  | 25,387 |  |  |  | 441,081 |  |  |  | 8,218 |  |  |  | 6,059 |  |  |  | (60 | ) |  |  | 455,298 |
Other operating income |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 749 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 749 |
Segment Result |  |  | 25,988 |  |  |  | 8,978 |  |  |  | 12,183 |  |  |  | 8,410 |  |  |  | 10,406 |  |  |  | 6,916 |  |  |  | 4,006 |  |  |  | 76,887 |  |  |  | (398 | ) |  |  | (1,341 | ) |  |  | 320 |  |  |  | 75,468 |
Unallocated |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 3,124 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3,124 |
Segment Result Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 80,760 |  |  |  | (398 | ) |  |  | (1,341 | ) |  |  | 320 |  |  |  | 79,341 |
Finance expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (5,675 | )
Finance and other income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 19,174 |
Share of profit/ (loss) of associates accounted for using the equity method |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 16 |
Profit before tax |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 92,856 |
Income tax expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (18,594 | )
Profit for the period |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 74,262 |
Depreciation and amortization |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 15,064 |

25

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

|  | Three months ended December 31, |  |  | Nine months ended December 31, |
|  | 2018 |  |  | 2019 |  |  | 2018 |  |  | 2019 |
India |  | ₹ | 7,401 |  |  | ₹ | 7,321 |  |  | ₹ | 24,445 |  |  | ₹ | 22,765 |
Americas* |  |  | 84,056 |  |  |  | 89,549 |  |  |  | 239,730 |  |  |  | 261,654 |
Europe |  |  | 37,835 |  |  |  | 36,279 |  |  |  | 110,462 |  |  |  | 106,701 |
Rest of the world |  |  | 22,214 |  |  |  | 22,283 |  |  |  | 64,044 |  |  |  | 64,178 |
|  | ₹ | 151,506 |  |  | ₹ | 155,432 |  |  | ₹ | 438,681 |  |  | ₹ | 455,298 |

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

No customer individually accounted for more than 10% of the revenues during the three and nine months ended December 31, 2018 and 2019.

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.

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) Other Operating income of ₹2,798 and ₹749 for the nine months ended December 31, 2018 and 2019 respectively. Refer Note 28.

g) Segment results for ENU industry vertical for the nine months ended December 31, 2018, is after considering the impact of ₹5,141 ($75 million) paid to National Grid on settlement of a legal claim against the Company.

h) Segment results for Health BU industry vertical for the three and nine months ended December 31, 2018 is after considering the impact of ₹838 of impairment on certain intangible assets recognized on acquisitions.

32. List of subsidiaries and investments accounted for using equity method as at December 31, 2019 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, Inc. ** |  | USA
|  |  |  | Appirio, Inc. ** |  | USA
|  |  |  | Cooper Software, Inc. |  | USA
|  |  |  | Infocrossing, LLC |  | USA
|  |  |  | Wipro US Foundation |  | USA
|  |  |  | International TechneGroup Incorporated ** |  | 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 IT Services S.R.L. |  |  |  | Romania

26

Wipro IT Services SE (formerly Wipro Cyprus SE) |  |  |  |  |  | U.K.
|  | Wipro Doha LLC # |  |  |  | Qatar
|  | Wipro Technologies SA DE CV |  |  |  | Mexico
|  | Wipro Philippines, Inc. |  |  |  | Philippines
|  | Wipro Holdings Hungary Korlátolt Felelosségu Társaság |  |  |  | Hungary
|  |  |  | Wipro Holdings Investment Korlátolt Felelosségu Társaság |  | Hungary
|  | Wipro Information Technology Egypt SAE |  |  |  | Egypt
|  | 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 Limited |  |  |  | Ghana
|  | Wipro Technologies South Africa (Proprietary) Limited |  |  |  | South Africa
|  |  |  | Wipro Technologies Nigeria Limited |  | Nigeria
|  | Wipro IT Service Ukraine, LLC |  |  |  | Ukraine
|  | Wipro Information Technology Netherlands BV. |  |  |  | Netherlands
|  |  |  | Wipro Portugal S.A. ** |  | Portugal
|  |  |  | Wipro Technologies Limited |  | Russia
|  |  |  | Wipro Technology Chile SPA |  | Chile
|  |  |  | Wipro Solutions Canada Limited |  | Canada
|  |  |  | Wipro Information Technology Kazakhstan LLP |  | Kazakhstan
|  |  |  | Wipro Technologies W.T. Sociedad Anonima |  | Costa Rica
|  |  |  | Wipro Outsourcing Services (Ireland) Limited |  | Ireland
|  |  |  | Wipro 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 SA |  |  |  | Argentina
|  | Wipro Technologies S.R.L. |  |  |  | Romania
|  | PT. WT Indonesia |  |  |  | Indonesia
|  | Wipro (Thailand) Co. Limited |  |  |  | Thailand
|  | Wipro Bahrain Limited Co. S.P.C. |  |  |  | Bahrain
|  | Wipro Gulf LLC |  |  |  | Sultanate of Oman
|  | Rainbow Software LLC |  |  |  | Iraq
|  | Cellent GmbH |  |  |  | Germany
|  |  |  | Cellent GmbH |  | Austria
Wipro Networks Pte Limited |  |  |  |  |  | Singapore
|  | Wipro (Dalian) Limited |  |  |  | China
|  | Wipro Technologies SDN BHD |  |  |  | Malaysia
Wipro Chengdu Limited |  |  |  |  |  | China
Wipro IT Services Bangladesh Limited |  |  |  |  |  | Bangladesh
Wipro HR Services India Private Limited |  |  |  |  |  | India

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

27

# | 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, HealthPlan Services, Inc, Appirio, Inc. and International TechneGroup Incorporated are as follows:

Subsidiaries |  | Subsidiaries |  | Subsidiaries |  | Country of Incorporation
Wipro Portugal S.A. |  |  |  |  |  | Portugal
|  | Wipro Technologies GmbH |  |  |  | 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
|  | Designit Spain Digital, S.L |  |  |  | Spain
|  |  |  | Designit Colombia S A S |  | Colombia
|  |  |  | Designit Peru SAC |  | Peru
HealthPlan Services, Inc. |  |  |  |  |  | USA
|  | HealthPlan Services Insurance Agency, LLC |  |  |  | USA
International TechneGroup Incorporated |  |  |  |  |  | USA
|  | International TechneGroup Ltd. |  |  |  | U.K.
|  | ITI Proficiency Ltd |  |  |  | Israel
|  | IT S.R.L. |  |  |  | Italy
|  |  |  | Mech Works S.R.L. |  | Italy
Appirio, Inc. |  |  |  |  |  | USA
|  | Appirio, K.K |  |  |  | Japan
|  | Topcoder, LLC. |  |  |  | USA
|  | Appirio Ltd |  |  |  | Ireland
|  |  |  | Appirio GmbH |  | Germany
|  |  |  | Apprio Ltd (UK) |  | U.K.

As at December 31, 2019 the Company held 43.7% interest in Drivestream Inc, 33% interest in Denim Group Limited and 33.3% in Denim Group Management, LLC, accounted for using the equity method.

The list of controlled trusts are:

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

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33. Bank balance

|  | As at December 31, 2019 |
|  | In current Account |  |  | In Deposit Account |  |  | Total |
Axis Bank |  | ₹ | 46 |  |  | ₹ | 36,691 |  |  | ₹ | 36,737 |
ICICI Bank |  |  | 158 |  |  |  | 36,215 |  |  |  | 36,373 |
HDFC Bank |  |  | 249 |  |  |  | 34,932 |  |  |  | 35,181 |
Citi Bank |  |  | 17,254 |  |  |  | 8,899 |  |  |  | 26,153 |
HSBC |  |  | 16,239 |  |  |  | 7,506 |  |  |  | 23,745 |
ANZ Bank |  |  | 454 |  |  |  | 10,284 |  |  |  | 10,738 |
Kotak Mahindra Bank |  |  | 1 |  |  |  | 6,829 |  |  |  | 6,830 |
Saudi British Bank |  |  | 628 |  |  |  | 2,188 |  |  |  | 2,816 |
Canara Bank |  |  | — |  |  |  | 2,500 |  |  |  | 2,500 |
Wells Fargo Bank |  |  | 1,091 |  |  |  | 571 |  |  |  | 1,662 |
BNP Paribas |  |  | 937 |  |  |  | — |  |  |  | 937 |
JP Morgan Chase |  |  | 631 |  |  |  | — |  |  |  | 631 |
Uni Credit Banca |  |  | 379 |  |  |  | — |  |  |  | 379 |
Silicon Valley Bank |  |  | 262 |  |  |  | — |  |  |  | 262 |
Standard Chartered Bank |  |  | 248 |  |  |  | — |  |  |  | 248 |
Bank of Tokyo |  |  | 149 |  |  |  | — |  |  |  | 149 |
United Amara Bank |  |  | 128 |  |  |  | — |  |  |  | 128 |
Rabo Bank |  |  | 121 |  |  |  | — |  |  |  | 121 |
Others |  |  | 1,047 |  |  |  | — |  |  |  | 1,047 |
Total |  | ₹ | 40,022 |  |  | ₹ | 146,615 |  |  | ₹ | 186,637 |

34. Events after the reporting period

The Board of Directors in their meeting held on January 14, 2020, declared an interim dividend of ₹ 1/- (US$ 0.01) per equity share and ADR (50% on an equity share of par value of ₹ 2/-)

As per our report of even date attached |  | For and on behalf of the Board of Directors
for Deloitte Haskins & Sells LLP |  | Rishad A Premji |  | M K Sharma |  | Abidali Z Neemuchwala
Chartered Accountants |  | Chairman |  | Director |  | Chief Executive Officer
Firm’s Registration No: 117366W/W - 100018 |  |  |  |  |  | & Managing Director
Vikas Bagaria |  | Jatin Pravinchandra Dalal |  |  |  | M Sanaulla Khan
Partner |  | Chief Financial Officer |  |  |  | Company Secretary
Membership No. 60408 |  |  |  |  |  |
Bengaluru |  |  |  |  |  |
January 14, 2020 |  |  |  |  |  |

29