EX-99.5 6 d919143dex995.htm EX-99.5

Exhibit 99.5

WIPRO LIMITED

CIN: L32102KA1945PLC020800 ; Registered Office : Wipro Limited, Doddakanneli, Sarjapur Road, Bengaluru - 560035, India

Website: www.wipro.com ; Email id – info@wipro.com ; Tel: +91-80-2844 0011 ; Fax: +91-80-2844 0054

STATUTORILY AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE THREE MONTHS AND YEAR ENDED MARCH 31, 2020

UNDER IFRS (IASB)

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

|  |  |  | Three months ended |  |  | Year ended |
|  | Particulars |  | March 31, 2020 |  |  | December 31, 2019 |  |  | March 31, 2019 |  |  | March 31, 2020 |  |  | March 31, 2019 |
|  | Income from operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | a) Revenue |  |  | 157,110 |  |  |  | 154,705 |  |  |  | 150,063 |  |  |  | 610,232 |  |  |  | 585,845 |
|  | b) Other operating income |  |  | 395 |  |  |  | — |  |  |  | 1,546 |  |  |  | 1,144 |  |  |  | 4,344 |
|  | c) Foreign exchange gains/(losses), net |  |  | 993 |  |  |  | 727 |  |  |  | 316 |  |  |  | 3,169 |  |  |  | 3,215 |
I |  | Total income from operations |  |  | 158,498 |  |  |  | 155,432 |  |  |  | 151,925 |  |  |  | 614,545 |  |  |  | 593,404 |
|  | Expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | a) Purchase of stock-in-trade |  |  | 2,937 |  |  |  | 2,083 |  |  |  | 3,340 |  |  |  | 9,360 |  |  |  | 14,073 |
|  | b) (Increase)/Decrease in inventories of finished goods and stock-in-trade |  |  | 208 |  |  |  | 604 |  |  |  | (37 | ) |  |  | 2,022 |  |  |  | (673 | )
|  | c) Employee benefit expense |  |  | 85,448 |  |  |  | 82,381 |  |  |  | 77,387 |  |  |  | 326,571 |  |  |  | 299,774 |
|  | d) Depreciation, amortization and impairment |  |  | 5,798 |  |  |  | 5,295 |  |  |  | 5,595 |  |  |  | 20,862 |  |  |  | 19,474 |
|  | e) Sub-contracting/ technical fees |  |  | 22,771 |  |  |  | 22,764 |  |  |  | 23,934 |  |  |  | 90,521 |  |  |  | 94,725 |
|  | f) Facility expenses |  |  | 5,071 |  |  |  | 4,881 |  |  |  | 5,838 |  |  |  | 19,733 |  |  |  | 22,213 |
|  | g) Travel |  |  | 4,031 |  |  |  | 4,956 |  |  |  | 4,463 |  |  |  | 18,169 |  |  |  | 17,768 |
|  | h) Communication |  |  | 1,317 |  |  |  | 1,213 |  |  |  | 1,097 |  |  |  | 4,812 |  |  |  | 4,561 |
|  | i) Legal and professional fees |  |  | 1,256 |  |  |  | 1,142 |  |  |  | 630 |  |  |  | 4,733 |  |  |  | 4,361 |
|  | j) Marketing and brand building |  |  | 579 |  |  |  | 690 |  |  |  | 744 |  |  |  | 2,532 |  |  |  | 2,714 |
|  | k) Lifetime expected credit loss and provision for deferred contract cost |  |  | 394 |  |  |  | (72 | ) |  |  | (274 | ) |  |  | 1,043 |  |  |  | 980 |
|  | l) Other expenses |  |  | 2,299 |  |  |  | 2,262 |  |  |  | 1,888 |  |  |  | 8,457 |  |  |  | 13,524 |
II |  | Total expenses |  |  | 132,109 |  |  |  | 128,199 |  |  |  | 124,605 |  |  |  | 508,815 |  |  |  | 493,494 |
III |  | Finance expenses |  |  | 1,653 |  |  |  | 1,844 |  |  |  | 2,530 |  |  |  | 7,328 |  |  |  | 7,375 |
IV |  | Finance and Other Income |  |  | 4,907 |  |  |  | 5,370 |  |  |  | 7,228 |  |  |  | 24,081 |  |  |  | 22,923 |
V |  | Share of net profit/(loss) of associates accounted for using the equity method |  |  | 13 |  |  |  | 34 |  |  |  | (17 | ) |  |  | 29 |  |  |  | (43 | )
VI |  | Profit before tax [I-II-III+IV+V] |  |  | 29,656 |  |  |  | 30,793 |  |  |  | 32,001 |  |  |  | 122,512 |  |  |  | 115,415 |
VII |  | Tax expense |  |  | 6,205 |  |  |  | 6,164 |  |  |  | 7,064 |  |  |  | 24,799 |  |  |  | 25,242 |
VIII |  | Net profit for the period [VI-VII] |  |  | 23,451 |  |  |  | 24,629 |  |  |  | 24,937 |  |  |  | 97,713 |  |  |  | 90,173 |
IX |  | Total Other comprehensive income |  |  | 1,724 |  |  |  | 297 |  |  |  | 1,008 |  |  |  | 4,613 |  |  |  | 1,023 |
|  | Total comprehensive income for the period [VIII+IX] |  |  | 25,175 |  |  |  | 24,926 |  |  |  | 25,945 |  |  |  | 102,326 |  |  |  | 91,196 |
X |  | Profit for the period attributable to: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Equity holders of the Company |  |  | 23,260 |  |  |  | 24,558 |  |  |  | 24,833 |  |  |  | 97,218 |  |  |  | 90,031 |
|  | Non-controlling Interest |  |  | 191 |  |  |  | 71 |  |  |  | 104 |  |  |  | 495 |  |  |  | 142 |
|  |  |  |  | 23,451 |  |  |  | 24,629 |  |  |  | 24,937 |  |  |  | 97,713 |  |  |  | 90,173 |
|  | Total comprehensive income for the period attributable to: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Equity holders of the Company |  |  | 24,880 |  |  |  | 24,842 |  |  |  | 25,871 |  |  |  | 101,673 |  |  |  | 90,945 |
|  | Non-controlling Interest |  |  | 295 |  |  |  | 84 |  |  |  | 74 |  |  |  | 653 |  |  |  | 251 |
|  |  |  |  | 25,175 |  |  |  | 24,926 |  |  |  | 25,945 |  |  |  | 102,326 |  |  |  | 91,196 |
XI |  | Paid up equity share capital (Face value ₹ 2 per share) |  |  | 11,427 |  |  |  | 11,426 |  |  |  | 12,068 |  |  |  | 11,427 |  |  |  | 12,068 |
XII |  | Reserves excluding revaluation reserves and Non Controlling Interest as per balance sheet |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 546,031 |  |  |  | 556,048 |
XIII |  | Earnings per share (EPS) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | (Equity shares of par value of ₹ 2/- each) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | (EPS for the three months ended period is not annualized) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Basic (in ₹) |  |  | 4.09 |  |  |  | 4.31 |  |  |  | 4.13 |  |  |  | 16.67 |  |  |  | 14.99 |
|  | Diluted (in ₹) |  |  | 4.07 |  |  |  | 4.30 |  |  |  | 4.12 |  |  |  | 16.62 |  |  |  | 14.95 |

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1. | The audited consolidated financial results of the Company for the three months and year ended March 31, 2020 have been approved by the Board of Directors of the Company at its meeting held on April 15, 2020. The Company confirms that its statutory auditors, Deloitte Haskins & Sells LLP have issued an audit report with unmodified opinion on the consolidated financial results.

2. | The above consolidated financial results have been prepared from the interim condensed consolidated financial statements, which are prepared in accordance with International Financial Reporting Standards and its interpretations (“IFRS”), as issued by the International Accounting Standards Board (“IASB”).

3. | Estimation uncertainty relating to the global health pandemic on COVID-19

In assessing the recoverability of receivables including unbilled receivables, contract assets and contract costs, goodwill, intangible assets, and certain investments, the Company has considered internal and external information up to the date of approval of these consolidated financial results including credit reports and economic forecasts. The Company has performed sensitivity analysis on the assumptions used and based on current indicators of future economic conditions, the Company expects to recover the carrying amount of these assets. The impact of the global health pandemic may be different from that estimated as at the date of approval of these consolidated financial results and the Company will continue to closely monitor any material changes to future economic conditions.

4. | Adoption of IFRS 16 – Leases

On April 1, 2019, the Company has adopted IFRS 16, Leases, using modified retrospective method. Accordingly, the comparatives have not been retrospectively adjusted. The adoption of IFRS 16, did not have any material impact on the interim condensed consolidated results for three months ended March 31, 2020, December 31, 2019 and year ended March 31, 2020.

5. | List of subsidiaries and investments accounted for using equity method as at March 31, 2020 are provided in the table 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
|  |  |  | Rational Interaction, Inc. ** |  | 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.
|  | Designit A/S |  |  |  | Denmark
|  |  |  | Designit Denmark A/S |  | Denmark
|  |  |  | Designit Germany GmbH |  | Germany
|  |  |  | Designit Oslo A/S |  | Norway
|  |  |  | Designit Sweden AB |  | Sweden

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|  |  |  | Designit T.L.V Ltd. |  | Israel
|  |  |  | Designit Tokyo Ltd. |  | Japan
|  |  |  | Designit Spain Digital, S.L. ** |  | Spain
|  | Wipro Europe Limited |  |  |  | U.K.
|  |  |  | Wipro UK Limited |  | U.K.
|  | Wipro Financial Services UK Limited |  |  |  | U.K.
|  | Wipro IT Services S.R.L. |  |  |  | Romania
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
Wipro Networks Pte Limited |  |  |  |  |  | Singapore
|  | Wipro (Dalian) Limited |  |  |  | China
|  | Wipro Technologies SDN BHD |  |  |  | Malaysia

3

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.
#   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 Spain Digital, S.L, HealthPlan Services, Inc, Appirio, Inc, International TechneGroup Incorporated and Rational Interaction, Inc. are as follows:

Subsidiaries |  | Subsidiaries |  | Subsidiaries |  | Country of Incorporation
Wipro Portugal S.A. |  |  |  |  |  | Portugal
|  | Wipro Technologies GmbH |  |  |  | Germany
|  |  |  | Cellent GmbH |  | Germany
|  |  |  | Cellent GmbH |  | Austria
Wipro do Brasil Technologia Ltda |  |  |  |  |  | Brazil
|  | Wipro Do Brasil Sistemetas De Informatica Ltd |  |  |  | Brazil
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
|  |  |  | Apprio Ltd (UK) |  | U.K.
Rational Interaction, Inc. |  |  |  |  |  | USA
|  | Rational Consulting Australia Pty Ltd |  |  |  | Australia
|  | Rational Interaction Limited |  |  |  | Ireland

As at March 31, 2020 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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6. | 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.

Information on reportable segment for the three months ended March 31, 2020, December 31, 2019 and March 31, 2019, and year ended March 31, 2020 and March 31, 2019 is as follows:

|  | Three months ended |  |  | Year ended |
|  | March 31, 2020 |  |  | December 31, 2019 |  |  | March 31, 2019 |  |  | March 31, 2020 |  |  | March 31, 2019 |
Particulars |  | Audited |  |  | Audited |  |  | Audited |  |  | Audited |  |  | Audited |
Revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
IT Services |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
BFSI |  |  | 46,690 |  |  |  | 46,612 |  |  |  | 46,043 |  |  |  | 184,457 |  |  |  | 175,262 |
Health BU |  |  | 20,589 |  |  |  | 19,799 |  |  |  | 19,288 |  |  |  | 78,240 |  |  |  | 75,081 |
CBU |  |  | 25,669 |  |  |  | 25,443 |  |  |  | 23,667 |  |  |  | 97,008 |  |  |  | 89,313 |
ENU |  |  | 19,570 |  |  |  | 19,553 |  |  |  | 18,628 |  |  |  | 76,443 |  |  |  | 72,830 |
TECH |  |  | 19,503 |  |  |  | 18,584 |  |  |  | 18,402 |  |  |  | 75,895 |  |  |  | 76,591 |
MFG |  |  | 12,486 |  |  |  | 12,450 |  |  |  | 11,551 |  |  |  | 48,158 |  |  |  | 46,496 |
COMM |  |  | 8,453 |  |  |  | 8,565 |  |  |  | 8,286 |  |  |  | 33,840 |  |  |  | 32,680 |
Total of IT Services |  |  | 152,960 |  |  |  | 151,006 |  |  |  | 145,865 |  |  |  | 594,041 |  |  |  | 568,253 |
IT Products |  |  | 2,792 |  |  |  | 2,576 |  |  |  | 2,759 |  |  |  | 11,010 |  |  |  | 12,312 |
ISRE |  |  | 2,341 |  |  |  | 1,847 |  |  |  | 1,787 |  |  |  | 8,400 |  |  |  | 8,544 |
Reconciling Items |  |  | 10 |  |  |  | 3 |  |  |  | (32 | ) |  |  | (50 | ) |  |  | (49 | )
Total Revenue |  |  | 158,103 |  |  |  | 155,432 |  |  |  | 150,379 |  |  |  | 613,401 |  |  |  | 589,060 |
Other operating Income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
IT Services |  |  | 395 |  |  |  | — |  |  |  | 1,546 |  |  |  | 1,144 |  |  |  | 4,344 |
Total Other Operating Income |  |  | 395 |  |  |  | — |  |  |  | 1,546 |  |  |  | 1,144 |  |  |  | 4,344 |
Segment Result |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
IT Services |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
BFSI |  |  | 8,144 |  |  |  | 8,246 |  |  |  | 9,649 |  |  |  | 34,132 |  |  |  | 33,831 |
Health BU |  |  | 3,049 |  |  |  | 3,186 |  |  |  | 1,940 |  |  |  | 12,027 |  |  |  | 8,638 |
CBU |  |  | 4,546 |  |  |  | 4,725 |  |  |  | 4,716 |  |  |  | 16,729 |  |  |  | 16,828 |
ENU |  |  | 3,766 |  |  |  | 3,130 |  |  |  | 2,787 |  |  |  | 12,176 |  |  |  | 7,081 |
TECH |  |  | 3,906 |  |  |  | 3,256 |  |  |  | 3,031 |  |  |  | 14,312 |  |  |  | 15,916 |
MFG |  |  | 2,336 |  |  |  | 2,385 |  |  |  | 2,262 |  |  |  | 9,252 |  |  |  | 8,327 |
COMM |  |  | 1,330 |  |  |  | 1,444 |  |  |  | 985 |  |  |  | 5,336 |  |  |  | 4,396 |
Unallocated |  |  | (547 | ) |  |  | 1,360 |  |  |  | 1,161 |  |  |  | 2,577 |  |  |  | 3,142 |
Other Operating Income |  |  | 395 |  |  |  | — |  |  |  | 1,546 |  |  |  | 1,144 |  |  |  | 4,344 |
Total of IT Services |  |  | 26,925 |  |  |  | 27,732 |  |  |  | 28,077 |  |  |  | 107,685 |  |  |  | 102,503 |
IT Products |  |  | 116 |  |  |  | (140 | ) |  |  | (93 | ) |  |  | (282 | ) |  |  | (1,047 | )
ISRE |  |  | (481 | ) |  |  | (528 | ) |  |  | (775 | ) |  |  | (1,822 | ) |  |  | (1,829 | )
Reconciling Items |  |  | (171 | ) |  |  | 169 |  |  |  | 111 |  |  |  | 149 |  |  |  | 283 |
Total |  |  | 26,389 |  |  |  | 27,233 |  |  |  | 27,320 |  |  |  | 105,730 |  |  |  | 99,910 |
Finance Expense |  |  | (1,653 | ) |  |  | (1,844 | ) |  |  | (2,530 | ) |  |  | (7,328 | ) |  |  | (7,375 | )
Finance and Other Income |  |  | 4,907 |  |  |  | 5,370 |  |  |  | 7,228 |  |  |  | 24,081 |  |  |  | 22,923 |
Share of net profit/ (loss) of associates accounted for using the equity method |  |  | 13 |  |  |  | 34 |  |  |  | (17 | ) |  |  | 29 |  |  |  | (43 | )
Profit before tax |  |  | 29,656 |  |  |  | 30,793 |  |  |  | 32,001 |  |  |  | 122,512 |  |  |  | 115,415 |

Notes:

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

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| 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 amounting to ₹ 993, ₹ 727 and ₹ 316 for the three months ended March 31, 2020, December 31, 2019 and March 31, 2019, respectively, and ₹ 3,169 and ₹ 3,215 for the year ended March 31, 2020 and 2019, respectively, which is reported as a part of ‘Other income’ in the interim 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 amounting to ₹ 395, Nil, and ₹ 1,546 is included as part of IT Services segment results for the three months ended March 31, 2020, December 31, 2019, and March 31, 2019, respectively, and ₹ 1,144 and ₹ 4,344 for the year ended March 31, 2020 and 2019, respectively. (Refer Note 9).

| g) | Segment results for ENU industry vertical for the year ended March 31, 2019 is after considering the impact of ₹ 5,141 paid to National Grid on settlement of a legal claim against the Company.

| h) | Segment results for Health BU industry vertical for the three months and year ended March 31, 2019, is after considering the impact of impairment charges on certain software platform and intangible assets recognized on acquisitions amounting to ₹ 1,480 and ₹ 2,318, respectively

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7. | Consolidated Balance Sheet

|  | As at March 31, 2019 |  |  | As at March 31, 2020 |
ASSETS |  |  |  |  |  |  |  |
Goodwill |  |  | 116,980 |  |  |  | 131,012 |
Intangible assets |  |  | 13,762 |  |  |  | 16,362 |
Property, plant and equipment |  |  | 70,601 |  |  |  | 81,120 |
Right-of-use assets |  |  | — |  |  |  | 16,748 |
Financial assets |  |  |  |  |  |  |  |
Derivative assets |  |  | 173 |  |  |  | — |
Investments |  |  | 6,916 |  |  |  | 9,302 |
Trade receivables |  |  | 4,373 |  |  |  | 6,049 |
Other financial assets |  |  | 5,146 |  |  |  | 5,881 |
Investments accounted for using the equity method |  |  | 1,235 |  |  |  | 1,383 |
Deferred tax assets |  |  | 5,604 |  |  |  | 6,005 |
Non-current tax assets |  |  | 20,603 |  |  |  | 11,414 |
Other non-current assets |  |  | 15,872 |  |  |  | 11,935 |
Total non-current assets |  |  | 261,265 |  |  |  | 297,211 |
Inventories |  |  | 3,951 |  |  |  | 1,865 |
Financial assets |  |  |  |  |  |  |  |
Derivative assets |  |  | 4,931 |  |  |  | 3,025 |
Investments |  |  | 220,716 |  |  |  | 189,635 |
Cash and cash equivalents |  |  | 158,529 |  |  |  | 144,499 |
Trade receivables |  |  | 100,489 |  |  |  | 104,474 |
Unbilled receivables |  |  | 22,880 |  |  |  | 25,209 |
Other financial assets |  |  | 14,611 |  |  |  | 8,614 |
Contract assets |  |  | 15,038 |  |  |  | 17,143 |
Current tax assets |  |  | 7,435 |  |  |  | 2,882 |
Other current assets |  |  | 23,086 |  |  |  | 22,505 |
|  |  | 571,666 |  |  |  | 519,851 |
Assets held for sale |  |  | 240 |  |  |  | — |
Total current assets |  |  | 571,906 |  |  |  | 519,851 |
TOTAL ASSETS |  |  | 833,171 |  |  |  | 817,062 |
EQUITY |  |  |  |  |  |  |  |
Share capital |  |  | 12,068 |  |  |  | 11,427 |
Securities premium reserve |  |  | 533 |  |  |  | 1,275 |
Retained earnings |  |  | 534,700 |  |  |  | 519,907 |
Share-based payment reserve |  |  | 2,617 |  |  |  | 1,550 |
Other components of equity |  |  | 18,198 |  |  |  | 23,299 |
Equity attributable to the equity holders of the Company |  |  | 568,116 |  |  |  | 557,458 |
Non-controlling interest |  |  | 2,637 |  |  |  | 1,875 |
TOTAL EQUITY |  |  | 570,753 |  |  |  | 559,333 |
LIABILITIES |  |  |  |  |  |  |  |
Financial liabilities |  |  |  |  |  |  |  |
Long - term loans and borrowings |  |  | 28,368 |  |  |  | 4,840 |
Derivative liabilities |  |  | — |  |  |  | 138 |
Lease liabilities |  |  | — |  |  |  | 12,638 |
Other financial liabilities |  |  | — |  |  |  | 151 |
Deferred tax liabilities |  |  | 3,417 |  |  |  | 2,825 |
Non-current tax liabilities |  |  | 11,023 |  |  |  | 13,205 |
Other non-current liabilities |  |  | 5,258 |  |  |  | 7,537 |
Provisions |  |  | 2 |  |  |  | 2 |
Total non-current liabilities |  |  | 48,068 |  |  |  | 41,336 |
Financial liabilities |  |  |  |  |  |  |  |
Loans, borrowings and bank overdrafts |  |  | 71,099 |  |  |  | 73,202 |
Derivative liabilities |  |  | 1,310 |  |  |  | 7,231 |
Trade payables and accrued expenses |  |  | 88,304 |  |  |  | 78,129 |
Lease liabilities |  |  | — |  |  |  | 6,560 |
Other financial liabilities |  |  | 644 |  |  |  | 899 |
Contract liabilities |  |  | 24,768 |  |  |  | 18,775 |
Current tax liabilities |  |  | 9,541 |  |  |  | 11,731 |
Other current liabilities |  |  | 18,046 |  |  |  | 19,254 |
Provisions |  |  | 638 |  |  |  | 612 |
Total current liabilities |  |  | 214,350 |  |  |  | 216,393 |
TOTAL LIABILITIES |  |  | 262,418 |  |  |  | 257,729 |
TOTAL EQUITY AND LIABILITIES |  |  | 833,171 |  |  |  | 817,062 |

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8. | Consolidated Statement of cash flows:

|  | Year ended March 31, |
|  | 2019 |  |  | 2020 |
Cash flows from operating activities: |  |  |  |  |  |  |  |
Profit for the year |  |  | 90,173 |  |  |  | 97,713 |
Adjustments to reconcile profit for the year to net cash generated from operating activities: |  |  |  |  |  |  |  |
(Gain)/ loss on sale of property, plant and equipment and intangible assets, net |  |  | (309 | ) |  |  | (11 | )
Depreciation, amortization and impairment |  |  | 19,474 |  |  |  | 20,862 |
Unrealized exchange (gain)/ loss, net and exchange (gain)/ loss on borrowings |  |  | (546 | ) |  |  | 6,376 |
Share based compensation expense |  |  | 1,938 |  |  |  | 1,262 |
Share of net (profit)/ loss of associates accounted for using equity method |  |  | 43 |  |  |  | (29 | )
Income tax expense |  |  | 25,242 |  |  |  | 24,799 |
Dividend, gain from investments and interest (income)/expenses, net |  |  | (17,371 | ) |  |  | (18,945 | )
Gain from sale of business and loss of control in subsidiary, net |  |  | (4,344 | ) |  |  | (1,144 | )
Changes in operating assets and liabilities, net of effects from acquisitions |  |  |  |  |  |  |  |
Trade receivables |  |  | 1,392 |  |  |  | (3,327 | )
Unbilled receivables and contract assets |  |  | 4,580 |  |  |  | (3,561 | )
Inventories |  |  | (566 | ) |  |  | 2,085 |
Other assets |  |  | (6,909 | ) |  |  | (80 | )
Trade payables, accrued expenses, other liabilities and provisions |  |  | 20,844 |  |  |  | (12,401 | )
Contract liabilities |  |  | 7,824 |  |  |  | (6,572 | )
Cash generated from operating activities before taxes |  |  | 141,465 |  |  |  | 107,027 |
Income taxes paid, net |  |  | (25,149 | ) |  |  | (6,384 | )
Net cash generated from operating activities |  |  | 116,316 |  |  |  | 100,643 |
Cash flows from investing activities: |  |  |  |  |  |  |  |
Purchase of property, plant and equipment |  |  | (22,781 | ) |  |  | (23,497 | )
Proceeds from sale of property, plant and equipment |  |  | 1,940 |  |  |  | 1,270 |
Purchase of investments |  |  | (930,614 | ) |  |  | (1,178,247 | )
Proceeds from sale of investments |  |  | 954,954 |  |  |  | 1,212,826 |
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 including deposits and escrow, net of cash acquired |  |  | — |  |  |  | (10,003 | )
Proceeds from sale of business |  |  | — |  |  |  | 7,459 |
Interest received |  |  | 20,163 |  |  |  | 23,837 |
Dividend received |  |  | 361 |  |  |  | 367 |
Net cash generated in investing activities |  |  | 50,126 |  |  |  | 34,012 |
Cash flows from financing activities: |  |  |  |  |  |  |  |
Proceeds from issuance of equity shares and shares pending allotment |  |  | 4 |  |  |  | 14 |
Repayment of loans and borrowings |  |  | (104,039 | ) |  |  | (132,380 | )
Proceeds from loans and borrowings |  |  | 65,161 |  |  |  | 106,342 |
Repayment of lease liabilities |  |  | — |  |  |  | (6,784 | )
Payment for deferred contingent consideration in respect of business combination |  |  | (265 | ) |  |  | — |
Payment for buy back of shares, including transaction cost |  |  | — |  |  |  | (105,311 | )
Interest paid |  |  | (4,796 | ) |  |  | (4,601 | )
Payment of cash dividend (including dividend tax thereon) |  |  | (5,434 | ) |  |  | (6,863 | )
Payment of cash dividend to Non-controlling interest |  |  | — |  |  |  | (1,415 | )
Net cash used in financing activities |  |  | (49,369 | ) |  |  | (150,998 | )
Net increase in cash and cash equivalents during the year |  |  | 117,073 |  |  |  | (16,343 | )
Effect of exchange rate changes on cash and cash equivalents |  |  | 526 |  |  |  | 1,922 |
Cash and cash equivalents at the beginning of the year |  |  | 40,926 |  |  |  | 158,525 |
Cash and cash equivalents at the end of the year |  |  | 158,525 |  |  |  | 144,104 |

9. | Other operating income

Year ended March 31, 2019

Sale of hosted data center services business: During the year ended March 31, 2019, 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) |  | ₹ | 25,432 |
Less: Carrying amount of net assets disposed (including goodwill of ₹ 13,009) |  |  | (26,455 | )
Add: Reclassification of exchange difference on foreign currency translation |  |  | 4,131 |
Gain on sale |  | ₹ | 3,108 |

In accordance with the sale agreement, total cash consideration was ₹ 28,124 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 March 31, 2019. Consequently, the sale consideration accounted of ₹ 24,358 and units amounting to ₹ 1,734 issued by the buyer.

Loss of control in subsidiary: During the year ended March 31, 2019, 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.

Sale of Workday and Cornerstone OnDemand business: During the year ended March 31, 2019, the Company has concluded the Sale of Workday and Cornerstone OnDemand business except in Portugal, France and Sweden.

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The calculation of the gain is as shown below:

Particulars |  | Total |
Cash considerations |  | ₹ | 6,645 |
Less: Carrying amount of net assets disposed (includes goodwill of ₹ 4,893 and intangible assets of ₹ 740) |  |  | (5,475 | )
Add: Reclassification of exchange difference on foreign currency translation |  |  | 79 |
Gain on Sale |  | ₹ | 1,249 |

Assets pertaining to Portugal, France and Sweden are classified as Assets held for sale ₹ 240 as at March 31, 2019, which was concluded on May 31, 2019. These disposal groups do not constitute a major component of the Company and hence were not classified as discontinued operations.

Year ended March 31, 2020

During the year ended March 31, 2020, 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 year ended March 31, 2020, the Company has partially met the first year and second-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 ₹ 395 and ₹ 992 for the three months and year ended March 31, 2020 respectively, has been recognized under Other operating income.

10. | Business combinations:

During the year ended March 31, 2020, the Company has completed three business combinations (which individually are not material) for a total consideration of ₹ 10,433. These include (a) taking over customer contracts, leased facilities, assets and employees of Vara Infotech Private Limited, (b) acquisition of International TechneGroup Incorporated, a global digital engineering and manufacturing solutions Company and (c) acquisition of Rational Interaction, Inc, a digital customer experience management Company. The following table presents the provisional purchase price allocation:

Description |  | Purchase price allocated |
Net assets |  | ₹ | 907 |
Customer related intangibles |  |  | 4,535 |
Marketing related intangibles |  |  | 371 |
Deferred tax liabilities on intangible assets |  |  | (213 | )
Total |  | ₹ | 5,600 |
Goodwill |  |  | 4,833 |
Total purchase price |  | ₹ | 10,433 |

Net assets acquired include ₹ 317 of cash and cash equivalents.

The goodwill of ₹ 4,833 comprises value of acquired workforce and expected synergies arising from the business combinations. Goodwill is partially deductible for income tax purpose in India and USA.

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

By order of the Board, |  | For, Wipro Limited
Place: Bengaluru Date: April 15, 2020 |  | Rishad A Premji Chairman

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