EX-99.4 5 d296279dex994.htm EX-99.4

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, 2021

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, 2021				As at December 31, 2021
												Convenience translation into US dollar in millions (unaudited) Refer to Note 2(iii)
ASSETS
Goodwill		6			139,127				242,945				3,266
Intangible assets		6			13,085				44,320				596
Property, plant and equipment		4			85,192				90,248				1,213
Right-of-Use assets		5			16,420				18,445				248
Financial assets
Derivative assets		17			16				35				^
Investments		8			10,576				17,543				236
Trade receivables					4,358				1,301				17
Other financial assets		11			6,088				6,052				81
Investments accounted for using the equity method					1,464				775				10
Deferred tax assets					1,664				2,357				32
Non-current tax assets					14,323				10,222				137
Other non-current assets		12			15,935				12,377				166
Total non-current assets					308,248				446,620				6,002
Inventories		9			1,064				1,025				14
Financial assets
Derivative assets		17			4,064				5,277				71
Investments		8			175,707				235,740				3,169
Cash and cash equivalents		10			169,793				107,458				1,445
Trade receivables					94,298				122,365				1,645
Unbilled receivables					27,124				38,908				523
Other financial assets		11			7,245				9,608				129
Contract assets					16,507				16,680				224
Current tax assets					2,461				4,185				56
Other current assets		12			24,923				29,504				397
Total current assets					523,186				570,750				7,673
TOTAL ASSETS					831,434				1,017,370				13,675
EQUITY
Share capital					10,958				10,962				147
Share premium					714				1,304				18
Retained earnings					466,692				555,789				7,471
Share-based payment reserve					3,071				4,094				55
SEZ Re-investment reserve					41,154				44,167				594
Other components of equity					30,506				37,609				506
Equity attributable to the equity holders of the Company					553,095				653,925				8,791
Non-controlling interests					1,498				446				6
TOTAL EQUITY					554,593				654,371				8,797
LIABILITIES
Financial liabilities
Loans and borrowings		13			7,458				55,417				745
Derivative liabilities		17			—				1				^
Lease liabilities					13,513				15,056				202
Other financial liabilities		14			2,291				3,676				49
Deferred tax liabilities					4,633				14,989				201
Non-current tax liabilities					11,069				14,520				195
Other non-current liabilities		15			7,835				8,238				111
Provisions		16			2				6				^
Total non-current liabilities					46,801				111,903				1,503
Financial liabilities
Loans, borrowings and bank overdrafts		13			75,874				78,501				1,055
Derivative liabilities		17			1,070				340				5
Trade payables and accrued expenses					78,870				87,506				1,175
Lease liabilities					7,669				8,647				116
Other financial liabilities		14			1,470				3,906				53
Contract liabilities					22,535				28,161				379
Current tax liabilities					17,324				18,992				255
Other current liabilities		15			24,552				24,238				326
Provisions		16			676				805				11
Total current liabilities					230,040				251,096				3,375
TOTAL LIABILITIES					276,841				362,999				4,878
TOTAL EQUITY AND LIABILITIES					831,434				1,017,370				13,675

^ Value is less than 1

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

As per our report of even date attached		For and on behalf of the Board of Directors
for Deloitte Haskins & Sells LLP		Rishad A. Premji		Deepak M. Satwalekar		Thierry Delaporte
Chartered Accountants		Chairman		Director		Chief Executive Officer and
Firm 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 12, 2022

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				2020				2021				2021				2020				2021				2021
														Convenience translation into US dollar in millions (unaudited) Refer to Note 2(iii)												Convenience translation into US dollar in millions (unaudited) Refer to Note 2(iii)
Revenues			20				156,700				203,136				2,731				456,976				582,334				7,828
Cost of revenues			21				(104,313	)			(142,778	)			(1,919	)			(313,400	)			(407,907	)			(5,483	)
Gross profit							52,387				60,358				812				143,576				174,427				2,345
Selling and marketing expenses			21				(11,326	)			(13,988	)			(189	)			(30,721	)			(40,857	)			(549	)
General and administrative expenses			21				(7,814	)			(12,036	)			(162	)			(25,997	)			(33,854	)			(455	)
Foreign exchange gains/(losses), net			23				566				1,187				16				2,109				3,280				44
Other operating income/(loss), net			26				—				14				^				(81	)			2,179				29
Results from operating activities							33,813				35,535				477				88,886				105,175				1,414
Finance expenses			22				(1,400	)			(1,403	)			(19	)			(3,966	)			(3,608	)			(49	)
Finance and other income			23				5,975				3,578				48				16,465				12,311				165
Share of net profit/ (loss) of associates accounted for using the equity method							101				76				1				126				73				1
Profit before tax							38,489				37,786				507				101,511				113,951				1,531
Income tax expense			19				(8,524	)			(8,063	)			(108	)			(22,590	)			(22,547	)			(303	)
Profit for the period							29,965				29,723				399				78,921				91,404				1,228
Profit attributable to:
Equity holders of the Company							29,667				29,690				399				78,225				91,318				1,227
Non-controlling interests							298				33				^				696				86				1
Profit for the period							29,965				29,723				399				78,921				91,404				1,228
Earnings per equity share:			24
Attributable to equity holders of the Company
Basic							5.21				5.43				0.07				13.74				16.71				0.22
Diluted							5.17				5.42				0.07				13.46				16.67				0.22
Weighted average number of equity shares used in computing earnings per equity share
Basic							5,696,798,493				5,467,954,878				5,467,954,878				5,694,731,405				5,465,359,077				5,465,359,077
Diluted							5,741,070,466				5,481,204,821				5,481,204,821				5,812,779,105				5,478,766,612				5,478,766,612

^ Value is less than 1

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

As per our report of even date attached		For and on behalf of the Board of Directors
for Deloitte Haskins & Sells LLP		Rishad A. Premji		Deepak M. Satwalekar		Thierry Delaporte
Chartered Accountants		Chairman		Director		Chief Executive Officer and
Firm 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 12, 2022

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,
		2020				2021				2021				2020				2021				2021
										Convenience translation into US dollar in millions (unaudited) Refer to Note 2(iii)												Convenience translation into US dollar in millions (unaudited) Refer to Note 2(iii)
Profit for the period			29,965				29,723				400				78,921				91,404				1,228
Other comprehensive income (OCI)
Items that will not be reclassified to profit or loss in subsequent periods
Remeasurements of the defined benefit plans, net			(57	)			104				1				(213	)			(675	)			(9	)
Net change in fair value of investment in equity instruments measured at fair value through OCI			273				2,643				36				465				8,248				111
			216				2,747				37				252				7,573				102
Items that will be reclassified to profit or loss in subsequent periods
Foreign currency translation differences			1,009				(303	)			(4	)			798				(163	)			(2	)
Reclassification of foreign currency translation differences on sale of investment in associates and liquidation of subsidiaries to statement of income			—				(116	)			(2	)			—				(151	)			(2	)
Net change in time value of option contracts designated as cash flow hedges			(111	)			107				1				43				165				2
Net change in intrinsic value of option contracts designated as cash flow hedges			20				13				^				1,068				(77	)			(1	)
Net change in fair value of forward contracts designated as cash flow hedges			233				126				2				2,266				777				10
Net change in fair value of investment in debt instruments measured at fair value through OCI			257				(802	)			(11	)			2,868				(995	)			(13	)
			1,408				(975	)			(14	)			7,043				(444	)			(6	)
Total other comprehensive income, net of taxes			1,624				1,772				23				7,295				7,129				96
Total comprehensive income for the period			31,589				31,495				423				86,216				98,533				1,324
Total comprehensive income attributable to:
Equity holders of the Company			31,306				31,459				423				85,573				98,421				1,322
Non-controlling interests			283				36				^				643				112				2
			31,589				31,495				423				86,216				98,533				1,324

^ Value is less than 1

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

As per our report of even date attached		For and on behalf of the Board of Directors
for Deloitte Haskins & Sells LLP		Rishad A. Premji		Deepak M. Satwalekar		Thierry Delaporte
Chartered Accountants		Chairman		Director		Chief Executive Officer and
Firm 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 12, 2022

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																Non- controlling interests				Total equity
Particulars		Number of shares*				Share capital, fully paid- up				Share premium				Retained earnings				Share- based payment reserve				SEZ Re-investment reserve				Foreign currency translation reserve **				Cash flow hedging reserve				Other reserves**				Equity attributable to the equity holders of the Company
As at April 1, 2020			5,713,357,390				11,427				1,275				476,103				1,550				43,804				23,539				(2,315	)			2,075				557,458				1,875				559,333
Comprehensive income for the period
Profit for the period			—				—				—				78,225				—				—				—				—				—				78,225				696				78,921
Other comprehensive income			—				—				—				—				—				—				851				3,377				3,120				7,348				(53	)			7,295
Total comprehensive income for the period			—				—				—				78,225				—				—				851				3,377				3,120				85,573				643				86,216
Issue of equity shares on exercise of options*			1,980,699				4				540				—				(540	)			—				—				—				—				4				—				4
Liability for Buyback of equity shares, including tax thereon (Refer to Note 31)			—				—				—				(117,021	)			—				—				—				—				—				(117,021	)			—				(117,021	)
Transaction cost related to proposed Buyback			—				—				—				(92	)			—				—				—				—				—				(92	)			—				(92	)
Issue of shares by controlled trust on exercise of options			—				—				—				468				(468	)			—				—				—				—				—				—				—
Compensation cost related to employee share-based payment			—				—				—				5				1,223				—				—				—				—				1,228				—				1,228
Transferred to Special economic zone re-investment reserve			—				—				—				(13,413	)			—				13,413				—				—				—				—				—				—
Cash dividend paid			—				—				—				—				—				—				—				—				—				—				(960	)			(960	)
Others			—				—				—				—				—				—				—				—				—				—				(69	)			(69	)
Other transactions for the period			1,980,699				4				540				(130,053	)			215				13,413				—				—				—				(115,881	)			(1,029	)			(116,910	)
As at December 31, 2020			5,715,338,089				11,431				1,815				424,275				1,765				57,217				24,390				1,062				5,195				527,150				1,489				528,639

* Includes 20,469,844 treasury shares held as at December 31, 2020 by a controlled trust. 2,276,237 shares have been transferred by the controlled trust to eligible employees on exercise of options during the nine months ended December 31, 2020.

** Refer to Note 18

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																Non- controlling interests				Total equity
Particulars		Number of shares*				Share capital, fully paid- up				Share premium				Retained earnings				Share- based payment reserve				SEZ Re-investment reserve				Foreign currency translation reserve **				Cash flow hedging reserve				Other reserves**				Equity attributable to the equity holders of the Company
As at April 1, 2021			5,479,138,555				10,958				714				466,692				3,071				41,154				22,936				1,730				5,840				553,095				1,498				554,593
Comprehensive income for the period
Profit for the period			—				—				—				91,318				—				—				—				—				—				91,318				86				91,404
Other comprehensive income			—				—				—				—				—				—				(340	)			865				6,578				7,103				26				7,129
Total comprehensive income for the period			—				—				—				91,318				—				—				(340	)			865				6,578				98,421				112				98,533
Issue of equity shares on exercise of options			2,144,656				4				590				—				(590	)			—				—				—				—				4				—				4
Issue of shares by controlled trust on exercise of options *			—				—				—				785				(785	)			—				—				—				—				—				—				—
Compensation cost related to employee share-based payment			—				—				—				7				2,398				—				—				—				—				2,405				—				2,405
Transferred to Special economic zone re-investment reserve			—				—				—				(3,013	)			—				3,013				—				—				—				—				—				—
Cash dividend paid			—				—				—				—				—				—				—				—				—				—				(1,135	)			(1,135	)
Others			—				—				—				—				—				—				—				—				—				—				(29	)			(29	)
Other transactions for the period			2,144,656				4				590				(2,221	)			1,023				3,013				—				—				—				2,409				(1,164	)			1,245
As at December 31, 2021			5,481,283,211				10,962				1,304				555,789				4,094				44,167				22,596				2,595				12,418				653,925				446				654,371
Convenience translation into US dollar in millions (unaudited) Refer to Note 2(iii)							147				18				7,471				55				594				304				35				167				8,791				6				8,797

^ Value is less than ₹ 1

* Includes 15,752,068 treasury shares held as at December 31, 2021 by a controlled trust. 3,649,147 shares have been transferred by the controlled trust to eligible employees on exercise of options during the nine months ended December 31, 2021.

** Refer to Note 18

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		Deepak M. Satwalekar		Thierry Delaporte
Chartered Accountants		Chairman		Director		Chief Executive Officer and
Firm 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 12, 2022

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,
		2020				2021				2021
										Convenience translation into US dollar in millions (unaudited) Refer to Note 2(iii)
Cash flows from operating activities:
Profit for the period			78,921				91,404				1,228
Adjustments to reconcile profit for the period to net cash generated from operating activities:
Gain on sale of property, plant and equipment, net			(494	)			(421	)			(6	)
Depreciation, amortization and impairment expense			20,661				23,566				317
Unrealized exchange gain, net and exchange gain on borrowings			(1,742	)			(1,994	)			(27	)
Share-based compensation expense			1,806				2,398				32
Share of net profit of associates accounted for using equity method			(126	)			(73	)			(1	)
Income tax expense			22,590				22,547				303
Finance and other income, net of finance expenses			(13,150	)			(7,218	)			(97	)
(Gain)/loss from sale of business and investment accounted for using the equity method			81				(2,179	)			(29	)
Changes in operating assets and liabilities, net of effects from acquisitions
Trade receivables			14,896				(16,660	)			(224	)
Unbilled receivables and contract assets			4,535				(6,141	)			(83	)
Inventories			666				43				1
Other assets			6,796				(2,146	)			(29	)
Trade payables, accrued expenses, other liabilities and provisions			8,065				(3,685	)			(50	)
Contract liabilities			3,217				4,289				58
Cash generated from operating activities before taxes			146,722				103,730				1,393
Income taxes paid, net			(16,455	)			(16,248	)			(218	)
Net cash generated from operating activities			130,267				87,482				1,175
Cash flows from investing activities:
Purchase of property, plant and equipment			(13,466	)			(15,965	)			(215	)
Proceeds from sale of property, plant and equipment			612				704				9
Purchase of investments			(849,658	)			(771,180	)			(10,367	)
Proceeds from sale of investments			742,959				715,040				9,612
Payment for business acquisitions including deposits and escrow, net of cash acquired			(6,095	)			(129,760	)			(1,744	)
Proceeds from sale of investment accounted for using the equity method			—				1,636				22
Escrow and term deposits pertaining to proposed buyback			(10,600	)			—				—
Interest received			14,042				10,240				138
Dividend received			1				2				^
Net cash used in investing activities			(122,205	)			(189,283	)			(2,545	)
Cash flows from financing activities:
Proceeds from issuance of equity shares and shares pending allotment			4				4				^
Repayment of loans and borrowings			(60,991	)			(149,830	)			(2,014	)
Proceeds from loans and borrowings			58,607				201,877				2,714
Payment of lease liabilities			(6,602	)			(7,414	)			(100	)
Payment for transaction cost against proposed buyback			(87	)			—				—
Payment for deferred contingent consideration			—				(117	)			(2	)
Interest and finance expenses paid			(2,639	)			(3,976	)			(53	)
Payment of cash dividend to Non-controlling interests holders			(960	)			(1,135	)			(15	)
Net cash (used in)/ generated from financing activities			(12,668	)			39,409				530
Net decrease in cash and cash equivalents during the period			(4,606	)			(62,392	)			(840	)
Effect of exchange rate changes on cash and cash equivalents			(112	)			173				2
Cash and cash equivalents at the beginning of the period			144,104				169,663				2,281
Cash and cash equivalents at the end of the period (Note 10)			139,386				107,444				1,443

^ Value is less than 1

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

As per our report of even date attached		For and on behalf of the Board of Directors
for Deloitte Haskins & Sells LLP		Rishad A. Premji		Deepak M. Satwalekar		Thierry Delaporte
Chartered Accountants		Chairman		Director		Chief Executive Officer and
Firm 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 12, 2022

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, “we”, “us”, “our”, “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. The Company has its primary listing with BSE Ltd. and National Stock Exchange of India Ltd. The Company’s American Depository Shares (“ADS”) representing equity shares are also listed on the New York Stock Exchange.

The Company’s Board of Directors authorized these interim condensed consolidated financial statements for issue on January 12, 2022.

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 compliance with IAS 34, “Interim Financial Reporting”, 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, 2021. These interim condensed consolidated financial statements do not include all the information required for full annual financial statements prepared in accordance with International Financial Reporting Standards and its interpretations (“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 to the financial statement, 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 from April 1, 2021.

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 liability/(asset) 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, 2021, have been translated into United States dollars at the certified foreign exchange rate of US$1 = ₹ 74.39 as published by Federal Reserve Board of Governors on December 31, 2021. 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 the management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from those estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revision 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 service promised to a customer is capable of being distinct, and is distinct in the context of the contract, if not, the promised product or service is 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

7

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 indefinite 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 an asset or a cash generating unit to which an asset pertains is less than the carrying value. The Company assesses acquired intangible assets with finite useful life for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The recoverable amount of an asset or a cash generating unit is higher of value-in-use and fair value less cost of disposal. The calculation of value in use of an asset or a cash generating unit involves use of significant estimates and assumptions which include turnover, growth rates and net margins used to calculate projected future cash flows, risk-adjusted discount rate, future economic and market conditions.

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

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

e) Business combinations: In accounting for business combinations, judgment is required in identifying whether an identifiable intangible asset is to be recorded separately from goodwill. Additionally, estimating the acquisition date fair value of the identifiable assets acquired (including useful life estimates), liabilities assumed, 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 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 expected credit loss calculation based on the Company’s history of collections, customer’s creditworthiness, existing market conditions as well as forward looking estimates at the end of each reporting period.

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

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

j) 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.

8

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 lease is included in the lease term, if it is reasonably certain that the lessee will exercise the option. The Company reassesses the option upon occurrence of either a significant event or change in circumstances that are within the control of the lessee.

l) Provisions and contingent liabilities: The Company estimates the provisions that have present obligations as a result of past events and it is probable that outflow of resources will be required to settle the obligations. These provisions are reviewed at the end of each reporting date and are adjusted to reflect the current best estimates.

The Company uses significant judgement to disclose contingent liabilities. Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made. Contingent assets are neither recognized nor disclosed in the financial statements.

m) 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 forecasted transactions.

n) 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 interim condensed consolidated financial statements including credit reports and economic forecasts. The Company has performed sensitivity analysis on the assumptions used herein. Based on the current indicators of future economic conditions, the Company expects to recover the carrying amount of these assets.

The Company bases its assessment on the belief that the probability of occurrence of forecasted transactions is not impacted by COVID-19. The Company has considered the effect of changes, if any, in both counterparty credit risk and its own credit risk while assessing hedge effectiveness and measuring hedge ineffectiveness and continues to believe that COVID-19 has no impact on effectiveness of its hedges.

The impact of COVID-19 remains uncertain and may be different from what we have estimated as of the date of approval of these interim condensed consolidated financial statements and the Company will continue to closely monitor any material changes to future economic conditions.

3. Significant accounting policies

Please refer to the Company’s Annual report for the year ended March 31, 2021, for a discussion of the Company’s other critical accounting policies except for the adoption of new accounting standards, amendments and interpretations effective on or after April 1, 2021.

New Accounting standards, amendments and interpretations adopted by the Company effective from April 1, 2021:

Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 – Interest Rate Benchmark Reform (Phase 2)

The IASB issued Interest Rate Benchmark Reform (Phase 2), which amends IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16. The amendments complement those issued in 2019 and focus on the effects on financial statements when a company replaces the old interest rate benchmark with an alternative benchmark rate as a result of the reform. The amendments in this final phase relate to the modification of financial assets, financial liabilities and lease liabilities, specific hedge accounting requirements, and disclosure requirements applying IFRS 7 to accompany the amendments regarding modifications and hedge accounting. The adoption of the amendment to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 did not have any material impact on the interim condensed consolidated financial statements.

New amendments not yet adopted:

Certain new standards, amendments to standards and interpretations are not yet effective for annual periods beginning after April 1, 2021 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 interim condensed consolidated financial statements of the Company are:

Amendment to IAS 1 – Presentation of Financial Statements

On January 23, 2020, the IASB issued “Classification of liabilities as Current or Non-Current (Amendments to IAS 1)” providing a more general approach to the classification of liabilities under IAS 1 based on the contractual arrangement in place at the reporting date. The amendments aim to promote consistency in applying the requirements by helping companies to determine whether, in the statement of financial position, debt and other liabilities with an uncertain settlement date should be classified as current (due or potentially due to be settled within one year) or non-current. The amendments also clarified the classification requirements for debt a company might settle by converting it into equity. These amendments are effective for annual reporting periods beginning on or after January 1, 2024 and are to be applied retrospectively, with earlier application permitted. The adoption of amendments to IAS 1 is not expected to have any material impact on the consolidated financial statements.

9

Amendment to IAS 37 – Onerous Contracts – Cost of Fulfilling a Contract

On May 14, 2020, the IASB issued “Onerous Contracts — Cost of Fulfilling a Contract (Amendments to IAS 37)”, amending the standard regarding costs a company should include as the cost of fulfilling a contract when assessing whether a contract is onerous. The amendment specifies that the “cost of fulfilling” a contract comprises the “costs that relate directly to the contract”. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract or an allocation of other costs that relate directly to fulfilling contracts. These amendments are effective for annual reporting periods beginning on or after January 1, 2022, with earlier application permitted. The Company is currently evaluating the impact of amendment to IAS 37 on the consolidated financial statements.

IFRS 9 – Annual Improvements to IFRS Standards - 2018-2020

On May 14, 2020, IASB amended IFRS 9 as part of its Annual Improvements to IFRS Standards 2018-2020. The amendment clarifies which fees an entity includes when it applies the ‘10 percent’ test in paragraph B3.3.6 of IFRS 9 in assessing whether to derecognize a financial liability. This amendment is effective for annual reporting periods beginning on or after January 1, 2022, with earlier application permitted. The Company is currently evaluating the impact of amendment to IFRS 9 on the consolidated financial statements.

Amendment to IAS 1 – Presentation of Financial Statements

On February 12, 2021, the IASB amended IAS 1 “Presentation of Financial Statements”. The amendments require companies to disclose their material accounting policy information rather than their significant accounting policies. The amendments clarify that accounting policy information may be material because of its nature, even if the related amounts are immaterial. The amendments also clarified that accounting policy information is material if users of an entity’s financial statements would need it to understand other material information in the financial statements; and the amendments clarify that if an entity discloses immaterial accounting policy information, such information shall not obscure material accounting policy information. These amendments are effective for annual reporting periods beginning on or after January 1, 2023 and are to be applied retrospectively, with earlier application permitted. The Company is currently evaluating the impact of amendment to IAS 1 on the consolidated financial statements.

Amendment to IAS 8 – Accounting Policies, Changes in Accounting Estimates and Errors

On February 12, 2021, the IASB amended IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors”. The amendments clarify how companies should distinguish changes in accounting policies from changes in accounting estimates. That distinction is important because changes in accounting estimates are applied prospectively only to future transactions and other future events, but changes in accounting policies are generally also applied retrospectively to past transactions and other past events. These amendments are effective for annual reporting periods beginning on or after January 1, 2023 and are to be applied retrospectively, with earlier application permitted. The Company is currently evaluating the impact of amendment to IAS 8 on the consolidated financial statements.

Amendments to IAS 12 – “Income Taxes”

On May 7, 2021, the IASB amended IAS 12 “Income Taxes” and published ‘Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12)’ that clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. In specified circumstances, companies are exempt from recognizing deferred tax when they recognize assets or liabilities for the first time. The amendments clarify that this exemption does not apply to transactions such as leases and decommissioning obligations and companies are required to recognize deferred tax on such transactions. These amendments are effective for annual reporting periods beginning on or after January 1, 2023 and are to be applied retrospectively, with earlier application permitted. The Company is currently evaluating the impact of amendment to IAS 12 on the consolidated financial statements.

10

4. Property, plant and equipment

		Land				Buildings				Plant and equipment *				Furniture fixtures and equipment				Vehicles				Total
Gross carrying value:
As at April 1, 2020		₹	3,761			₹	36,510			₹	100,695			₹	19,870			₹	808			₹	161,644
Additions			—				2,724				10,197				1,457				2				14,380
Additions through Business combinations			—				—				14				52				—				66
Disposals			(58	)			(546	)			(2,497	)			(648	)			(121	)			(3,870	)
Translation adjustment			13				166				928				79				1				1,187
As at December 31, 2020		₹	3,716			₹	38,854			₹	109,337			₹	20,810			₹	690			₹	173,407
Accumulated depreciation/ impairment:
As at April 1, 2020		₹	—			₹	7,948			₹	78,056			₹	14,141			₹	727			₹	100,872
Depreciation and impairment **			—				1,129				8,121				1,368				56				10,674
Disposals			—				(486	)			(2,195	)			(321	)			(116	)			(3,118	)
Translation adjustment			—				65				461				51				1				578
As at December 31, 2020		₹	—			₹	8,656			₹	84,443			₹	15,239			₹	668			₹	109,006
Capital work-in-progress																						₹	18,971
Net carrying value including Capital work-in-progress as at December 31, 2020																						₹	83,372
Gross carrying value:
As at April 1, 2020		₹	3,761			₹	36,510			₹	100,695			₹	19,870			₹	808			₹	161,644
Additions			107				3,569				14,362				1,958				9				20,005
Additions through Business combinations			—				—				27				57				—				84
Disposals			(58	)			(765	)			(4,532	)			(1,218	)			(398	)			(6,971	)
Translation adjustment			5				100				303				25				(1	)			432
As at March 31, 2021		₹	3,815			₹	39,414			₹	110,855			₹	20,692			₹	418			₹	175,194
Accumulated depreciation/ impairment:
As at April 1, 2020		₹	—			₹	7,948			₹	78,056			₹	14,141			₹	727			₹	100,872
Depreciation and impairment **			—				1,500				11,123				1,845				61				14,529
Disposals			—				(695	)			(4,313	)			(908	)			(391	)			(6,307	)
Translation adjustment			—				32				174				11				—				217
As at March 31, 2021		₹	—			₹	8,785			₹	85,040			₹	15,089			₹	397			₹	109,311
Capital work-in-progress																						₹	19,309
Net carrying value including Capital work-in-progress as at March 31, 2021																						₹	85,192
Gross carrying value:
As at April 1, 2021		₹	3,815			₹	39,414			₹	110,855			₹	20,692			₹	418			₹	175,194
Additions			961				494				11,333				1,485				3				14,276
Additions through Business combinations			—				—				372				337				3				712
Disposals			(30	)			(240	)			(3,572	)			(632	)			(112	)			(4,586	)
Translation adjustment			(3	)			(1	)			89				7				1				93
As at December 31, 2021		₹	4,743			₹	39,667			₹	119,077			₹	21,889			₹	313			₹	185,689
Accumulated depreciation/ impairment:
As at April 1, 2021		₹	—			₹	8,785			₹	85,040			₹	15,089			₹	397			₹	109,311
Depreciation and impairment			—				1,190				9,062				1,592				7				11,851
Disposals			—				(239	)			(3,195	)			(564	)			(109	)			(4,107	)
Translation adjustment			—				1				97				12				1				111
As at December 31, 2021		₹	—			₹	9,737			₹	91,004			₹	16,129			₹	296			₹	117,166
Capital work-in-progress																						₹	21,725
Net carrying value including Capital work-in-progress as at December 31, 2021																						₹	90,248

* Includes computer equipment and software.

** Includes impairment charge on certain software platforms amounting to ₹ 45 and ₹ 283 for the three months and nine months ended December 31, 2020, respectively, and ₹ 285 for the year ended March 31, 2021.

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5. Right-of-Use assets

		Category of Right-of-Use asset
		Land				Buildings				Plant and equipment *				Vehicles				Total
Gross carrying value:
As at April 1, 2020		₹	2,003			₹	15,624			₹	4,236			₹	826			₹	22,689
Additions			—				2,830				682				34				3,546
Additions through Business combinations			—				185				—				84				269
Disposals			—				(1,774	)			(224	)			(80	)			(2,078	)
Translation adjustment			—				223				96				26				345
As at December 31, 2020		₹	2,003			₹	17,088			₹	4,790			₹	890			₹	24,771
Accumulated depreciation:
As at April 1, 2020		₹	27			₹	3,928			₹	1,721			₹	265			₹	5,941
Depreciation			21				3,339				1,170				210				4,740
Disposals			—				(1,245	)			(144	)			(52	)			(1,441	)
Translation adjustment			—				60				32				12				104
As at December 31, 2020		₹	48			₹	6,082			₹	2,779			₹	435			₹	9,344
Net carrying value as at December 31, 2020																		₹	15,427
Gross carrying value:
As at April 1, 2020		₹	2,003			₹	15,624			₹	4,236			₹	826			₹	22,689
Additions			79				5,323				770				162				6,334
Additions through Business combinations			—				352				—				84				436
Disposals			—				(2,503	)			(1,103	)			(154	)			(3,760	)
Translation adjustment			—				48				15				8				71
As at March 31, 2021		₹	2,082			₹	18,844			₹	3,918			₹	926			₹	25,770
Accumulated depreciation:
As at April 1, 2020		₹	27			₹	3,928			₹	1,721			₹	265			₹	5,941
Depreciation			28				4,487				1,465				285				6,265
Disposals			—				(1,703	)			(1,023	)			(119	)			(2,845	)
Translation adjustment			—				(9	)			(6	)			4				(11	)
As at March 31, 2021		₹	55			₹	6,703			₹	2,157			₹	435			₹	9,350
Net carrying value as at March 31, 2021																		₹	16,420
Gross carrying value:
As at April 1, 2021		₹	2,082			₹	18,844			₹	3,918			₹	926			₹	25,770
Additions			15				5,352				432				92				5,891
Additions through Business combinations			—				2,922				—				36				2,958
Disposals			(801	)			(2,385	)			(1,091	)			(136	)			(4,413	)
Translation adjustment			—				(126	)			10				(13	)			(129	)
As at December 31, 2021		₹	1,296			₹	24,607			₹	3,269			₹	905			₹	30,077
Accumulated depreciation:
As at April 1, 2021		₹	55			₹	6,703			₹	2,157			₹	435			₹	9,350
Depreciation			19				4,208				709				206				5,142
Disposals			(20	)			(1,967	)			(746	)			(109	)			(2,842	)
Translation adjustment			—				(23	)			12				(7	)			(18	)
As at December 31, 2021		₹	54			₹	8,921			₹	2,132			₹	525			₹	11,632
Net carrying value as at December 31, 2021																		₹	18,445

* Includes computer equipment.

6. Goodwill and intangible assets

The movement in goodwill balance is given below:

		For the period ended
		March 31, 2021				December 31, 2021
Balance at the beginning of the period		₹	131,012			₹	139,127
Acquisition through business combinations* (Refer to Note 7)			9,472				102,804
Translation adjustment			(1,357	)			1,014
Balance at the end of the period		₹	139,127			₹	242,945

* Acquisition through business combinations for the year ended March 31, 2021 and nine months ended December 31, 2021 is after considering the impact of ₹(72) and ₹80 towards changes in purchase price allocation of acquisitions made during the year ended March 31, 2020 and 2021, respectively.

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The movement in intangible assets is given below:

		Intangible assets
		Customer-related				Marketing-related				Total
Gross carrying value:
As at April 1, 2020		₹	32,490			₹	6,698			₹	39,188
Acquisition through business combinations			981				566				1,547
Translation adjustment			38				(134	)			(96	)
As at December 31, 2020		₹	33,509			₹	7,130			₹	40,639
Accumulated amortization/ impairment:
As at April 1, 2020		₹	17,898			₹	4,928			₹	22,826
Amortization and impairment *			(122	)			(114	)			(236	)
Translation adjustment			3,538				1,455				4,993
As at December 31, 2020		₹	21,314			₹	6,269			₹	27,583
Net carrying value as at December 31, 2020		₹	12,195			₹	861			₹	13,056
Gross carrying value:
As at April 1, 2020		₹	32,490			₹	6,698			₹	39,188
Acquisition through business combinations			2,460				828				3,288
Deductions/Adjustments			(8,568	)			(5,756	)			(14,324	)
Translation adjustment			(56	)			(159	)			(215	)
As at March 31, 2021		₹	26,326			₹	1,611			₹	27,937
Accumulated amortization/ impairment:
As at April 1, 2020		₹	17,898			₹	4,928			₹	22,826
Amortization and impairment *			5,060				1,548				6,608
Deductions/Adjustments			(8,568	)			(5,756	)			(14,324	)
Translation adjustment			(142	)			(116	)			(258	)
As at March 31, 2021		₹	14,248			₹	604			₹	14,852
Net carrying value as at March 31, 2021		₹	12,078			₹	1,007			₹	13,085
Gross carrying value:
As at April 1, 2021		₹	26,326			₹	1,611			₹	27,937
Acquisition through business combinations (Refer to Note 7)			27,857				9,822				37,679
Deductions/Adjustments			(11,695	)			(215	)			(11,910	)
Translation adjustment			322				(3	)			319
As at December 31, 2021		₹	42,810			₹	11,215			₹	54,025
Accumulated amortization/ impairment:
As at April 1, 2021		₹	14,248			₹	604			₹	14,852
Amortization and impairment			5,636				937				6,573
Deductions/Adjustments			(11,695	)			(215	)			(11,910	)
Translation adjustment			189				1				190
As at December 31, 2021		₹	8,378			₹	1,327			₹	9,705
Net carrying value as at As at December 31, 2021		₹	34,432			₹	9,888			₹	44,320

^*  During the year ended March 31, 2021, change in business strategy of a customer led to a significant decline in the revenue and earnings estimates, resulting in revision of recoverable value of customer-relationship intangible assets recognized on business combination. Further, the Company integrated certain brands acquired as part of a business combination, resulting in discontinuance of the acquired brands. Consequently, the Company has recognized impairment charge of ₹ 1,628 and ₹ 1,890 for the three and nine months ended December 31, 2020 and ₹ 1,879 for the year ended March 31, 2021, as part of amortization and impairment.

^*  Due to change in our estimate of useful life of customer-related intangibles in an earlier business combination, the Company has recognized additional amortization charge of ₹ 795 for the year ended March 31, 2021, as part of amortization and impairment.

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

13

7. Business combinations

Summary of acquisitions during the nine months ended December 31, 2021 is given below:

Capco and its subsidiaries (“Capco”)

On March 4, 2021, the Company entered into a definitive agreement to acquire 100% equity interest in Capco, a global management and technology consultancy company providing digital, consulting and technology services to financial institutions in the Americas, Europe and Asia Pacific, and its subsidiaries. The acquisition was consummated on April 29, 2021 and total cash consideration paid was ₹ 109,530. The following table presents the provisional purchase price allocation:

Description		Acquiree’s carrying amount				Fair value adjustments				Purchase price allocated
Net assets		₹	4,379			₹	—			₹	4,379
Customer-related intangibles			—				24,273				24,273
Marketing-related intangibles			—				8,083				8,083
Deferred tax liabilities on intangible assets			—				(9,383	)			(9,383	)
Total		₹	4,379			₹	22,973			₹	27,352
Goodwill											82,178
Total purchase price										₹	109,530

The goodwill of ₹ 82,178 comprises value of acquired workforce and expected synergies arising from the business combination. This acquisition will make the Company one of the largest end-to-end global consulting, technology and transformation service providers to the banking and financial services industry. By combining our capabilities in strategic design, digital transformation, cloud, cybersecurity, IT and operations services with Capco’s domain and consulting strength, our market units (SMUs) will be able to provide our clients the access to a partner who can deliver integrated, bespoke solutions to help fuel growth and achieve their transformation objectives.

The allocation is preliminary and will be finalized as soon as practicable within the measurement period, but in no event later than one year following the date of acquisition.

Net assets acquired include ₹ 4,278 of cash and cash equivalents.

The fair value of acquired trade receivables is ₹ 6,167. The gross contractual amount for trade receivables due is ₹ 6,181, with an allowance for lifetime expected credit loss of ₹ 14.

Goodwill is allocated to IT Services segment and is not deductible for income tax purposes.

The transaction costs of ₹ 358 related to the above acquisition has been included in general and administrative expenses in the interim condensed consolidated statement of income.

The acquired business contributed revenues of ₹ 46,935 and profit after taxes of ₹ 2,870 for the Company during the nine months ended December 31, 2021.

If the acquisition had been consummated on April 1, 2021, management estimates that consolidated revenue for the Company would have been ₹ 587,463 and the profit after taxes would have been ₹ 91,552 for the nine months ended December 31, 2021. The pro-forma amounts are not necessarily indicative of the results that would have occurred if the acquisition had occurred on date indicated or that may result in the future.

Ampion Holdings Pty Ltd and its subsidiaries (“Ampion”)

On April 1, 2021, the Company entered into a definitive agreement to acquire 100% equity interest in Ampion, an Australia-based provider of cyber security, DevOps and quality engineering services. The acquisition was consummated on August 6, 2021 and total cash consideration paid was ₹ 9,102. The following table presents the provisional purchase price allocation:

Description		Acquiree’s carrying amount				Fair value adjustments				Purchase price allocated
Net assets		₹	1,158			₹	—			₹	1,158
Customer-related intangibles			—				1,748				1,748
Marketing-related intangibles			—				460				460
Deferred tax liabilities on intangible assets			—				(663	)			(663	)
Total		₹	1,158			₹	1,545			₹	2,703
Goodwill											6,399
Total purchase price										₹	9,102

The goodwill of ₹ 6,399 comprises value of acquired workforce and expected synergies arising from the business combination. Our new operating model emphasizes strategic investments in focus geographies, proximity to customers, agility, scale and localization. The acquisition of Ampion is an important step in this direction and reinstates the commitment towards clients and stakeholders in Australia and New Zealand (ANZ), under APMEA SMU. Further, our and Ampion’s combined offerings, powered by engineering transformation, DevOps and security consulting services will bring scale and market agility to respond to the growing demands of customers.

14

The allocation is preliminary and will be finalized as soon as practicable within the measurement period, but in no event later than one year following the date of acquisition.

Net assets acquired include ₹ 855 of cash and cash equivalents.

The fair value of acquired trade receivables is ₹ 1,074. The gross contractual amount for trade receivables due is ₹ 1,074, with an allowance for lifetime expected credit loss of ₹ Nil.

Goodwill is allocated to IT Services segment and is not deductible for income tax purposes.

The transaction costs of ₹ 49 related to the above acquisition has been included in general and administrative expenses in the interim condensed consolidated statement of income.

The acquired business contributed revenues of ₹ 2,923 and profit after taxes of ₹ 74 for the Company during the nine months ended December 31, 2021.

If the acquisition had been consummated on April 1, 2021, management estimates that consolidated revenue for the Company would have been ₹ 584,862 and the profit after taxes would have been ₹ 91,598 for the nine months ended December 31, 2021. The pro-forma amounts are not necessarily indicative of the results that would have occurred if the acquisition had occurred on date indicated or that may result in the future.

Edgile, LLC (“Edgile”)

On December 19, 2021, the Company entered into a definitive agreement to acquire 100% equity interest in Edgile, a USA based transformational cybersecurity consulting provider that focuses on risk and compliance, information and cloud security, and digital identity. The acquisition was consummated on December 31, 2021 for total consideration (upfront cash payout to acquire control and contingent consideration) of ₹ 17,117.

The total consideration for Edgile includes a contingent consideration linked to achievement of revenues and earnings over a period of 2 years ending December 31, 2023, and range of contingent consideration payable is between ₹ Nil and ₹ 2,230. The fair value of the contingent consideration is estimated by applying the discounted cash-flow approach considering discount rate of 2.9% and probability adjusted revenue and earnings estimates. The undiscounted fair value of contingent consideration is ₹ 1,516 as of the date of acquisition. The discounted fair value of contingent consideration of ₹ 1,448 is recorded as part of provisional purchase price allocation.

The following table presents the provisional purchase price allocation:

Description		Acquiree’s carrying amount				Fair value adjustments				Purchase price allocated
Net assets		₹	1,309			₹	—			₹	1,309
Customer-related intangibles			—				1,747				1,747
Marketing-related intangibles			—				1,160				1,160
Total		₹	1,309			₹	2,907			₹	4,216
Goodwill											12,901
Total purchase price										₹	17,117

The goodwill of ₹ 12,901 comprises value of acquired workforce and expected synergies arising from the business combination. The acquisition will address the fast-growing demand for transformational cybersecurity consulting among Global 2000 enterprises. Together, Wipro and Edgile will help enterprises enhance boardroom governance of cybersecurity risk, invest in robust cyber strategies, and reap the value of practical security in action. In collaboration with an extensive roster of alliance partners from Wipro and Edgile, we will enable organizations to accelerate their digital transformation and operate in virtual and digital supply chains.

The allocation is preliminary and will be finalized as soon as practicable within the measurement period, but in no event later than one year following the date of acquisition.

Net assets acquired include ₹ 907 of cash and cash equivalents.

The fair value of acquired trade receivables is ₹ 818. The gross contractual amount for trade receivables due is ₹ 818, with an allowance for lifetime expected credit loss of ₹ Nil.

Goodwill is allocated to IT Services segment and is deductible for income tax purposes.

The transaction costs of ₹ 152 related to the above acquisition has been included in general and administrative expenses in the interim condensed consolidated statement of income.

If the acquisition had been consummated on April 1, 2021, management estimates that consolidated revenue for the Company would have been ₹ 585,459 and the profit after taxes would have been ₹ 91,552 for the nine months ended December 31, 2021. The pro-forma amounts are not necessarily indicative of the results that would have occurred if the acquisition had occurred on date indicated or that may result in the future.

15

LeanSwift Solutions Inc. and its subsidiaries (“LeanSwift”)

On December 14, 2021, the Company entered into a definitive agreement to acquire 100% equity interest in LeanSwift, a system integrator of Infor products for customers across the Americas and Europe. The acquisition was consummated on December 31, 2021 and total cash consideration paid was ₹ 1,606.

The following table presents the provisional purchase price allocation:

Description		Acquiree’s carrying amount				Fair value adjustments				Purchase price allocated
Net assets		₹	210			₹	—			₹	210
Customer-related intangibles			—				89				89
Marketing-related intangibles			—				119				119
Deferred tax liabilities on intangible assets							(58	)			(58	)
Total		₹	210			₹	50			₹	360
Goodwill											1,246
Total purchase price										₹	1,606

The goodwill of ₹ 1,246 comprises value of acquired workforce and expected synergies arising from the business combination. This acquisition aligns with our strategic investments in cloud transformation. The combined entity will provide Wipro an edge in key transformation deals, especially in the manufacturing and distribution sectors, by combining LeanSwift’s expertise in the Infor CloudSuites with our broader cloud-native digital capabilities.

The allocation is preliminary and will be finalized as soon as practicable within the measurement period, but in no event later than one year following the date of acquisition.

Net assets acquired include ₹ 141 of cash and cash equivalents.

The fair value of acquired trade receivables is ₹ 205. The gross contractual amount for trade receivables due is ₹ 221, with an allowance for lifetime expected credit loss of ₹ 16.

Goodwill is allocated to IT Services segment and is not deductible for income tax purposes.

8. Investments

		As at
		March 31, 2021				December 31, 2021
Non-current
Financial instruments at FVTPL
Equity instruments		₹	—			₹	1,252
Fixed maturity plan mutual funds			—				509
Financial instruments at FVTOCI
Equity instruments			10,572				14,146
Financial instruments at amortized cost
Inter corporate and term deposits *			4				1,636
		₹	10,576			₹	17,543
Current
Financial instruments at FVTPL
Short-term mutual funds		₹	23,502			₹	24,485
Financial instruments at FVTOCI
Non-convertible debentures, government securities, commercial papers and bonds			131,382				194,630
Financial instruments at amortized cost
Inter corporate and term deposits *			20,823				16,625
		₹	175,707			₹	235,740
		₹	186,283			₹	253,283

* These deposits earn a fixed rate of interest. Term deposits include non-current and current deposits in lien with banks primarily on account of term deposits held as margin money deposits against guarantees amounting to ₹ Nil and ₹ 645, respectively (March 31, 2021: Term deposits non-current of ₹ 4 and Term deposits current of ₹ 615).

16

9. Inventories

		As at
		March 31, 2021				December 31, 2021
Stores and spare parts		₹	127			₹	19
Finished and traded goods			937				1,006
		₹	1,064			₹	1,025

10. Cash and cash equivalents

		As at
		March 31, 2021				December 31, 2021
Cash and bank balances		₹	68,842			₹	55,108
Demand deposits with banks *			100,951				52,350
		₹	169,793			₹	107,458

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

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

		As at
		December 31, 2020				December 31, 2021
Cash and cash equivalents		₹	139,435			₹	107,458
Bank overdrafts			(49	)			(14	)
		₹	139,386			₹	107,444

11. Other financial assets

		As at
		March 31, 2021				December 31, 2021
Non-current
Security deposits		₹	1,477			₹	1,391
Interest receivables			1,139				—
Finance lease receivables			3,144				4,256
Others			328				405
		₹	6,088			₹	6,052
Current
Security deposits		₹	1,149			₹	1,623
Dues from officers and employees			411				1,298
Interest receivables			1,628				1,844
Finance lease receivables			3,438				4,343
Others			619				500
		₹	7,245			₹	9,608
		₹	13,333			₹	15,660

12. Other assets

		As at
		March 31, 2021				December 31, 2021
Non-current
Prepaid expenses		₹	3,417			₹	4,654
Costs to obtain contract*			3,413				3,200
Costs to fulfil contract**			337				303
Others (Refer to Note 32)			8,768				4,220
		₹	15,935			₹	12,377
Current
Prepaid expenses		₹	12,121			₹	16,337
Dues from officers and employees			105				264
Advance to suppliers			3,199				4,085
Balance with GST and other authorities			7,903				7,451
Costs to obtain contract*			759				831
Costs to fulfil contract**			53				53
Others			783				483
		₹	24,923			₹	29,504
		₹	40,858			₹	41,881

* Costs to obtain contract amortization of ₹ 317 and ₹ 222 during the three months ended December 31, 2020 and 2021 respectively, ₹ 1,031 and ₹ 674 during the nine months ended December 31, 2020 and 2021 respectively.

** Costs to fulfil contract amortization of ₹ Nil and ₹ 14 during the three months ended December 31, 2020 and 2021 respectively, ₹ Nil and ₹ 40 during the nine months ended December 31, 2020 and 2021 respectively.

17

13. Loans, borrowings and bank overdrafts

		As at
		March 31, 2021				December 31, 2021
Borrowings from banks		₹	82,895			₹	78,447
Unsecured Notes 2026			—				55,300
Loans from institutions other than banks			307				157
Bank overdrafts			130				14
		₹	83,332			₹	133,918
Non-current			7,458				55,417
Current			75,874				78,501

On June 23, 2021, Wipro IT Services LLC, a wholly owned step-down subsidiary of Wipro Limited, issued ₹ 55,748 (US$ 750 million) in unsecured notes 2026 (the “Notes”). The Notes bear interest at a rate of 1.50% per annum and will mature on June 23, 2026. The notes were issued at the discounted price of 99.636% against par value and have an effective interest rate of 1.6939% after considering the issue expenses and discount of ₹ 501 (US$6.7 million). Interest on the Notes is payable semi-annually on June 23 and December 23 of each year, commencing from December 23, 2021. The Notes are listed on Singapore Exchange Securities Trading Limited (SGX-ST)

14. Other financial liabilities

		As at
		March 31, 2021				December 31, 2021
Non-current
Contingent consideration		₹	2,158			₹	3,051
Advance from customers			123				—
Cash Settled ADS RSUs			7				3
Deposits and others			3				622
		₹	2,291			₹	3,676
Current
Contingent consideration		₹	135			₹	1,371
Advance from customers			496				1,062
Cash Settled ADS RSUs			24				25
Deposits and others			815				1,448
		₹	1,470			₹	3,906
		₹	3,761			₹	7,582

15. Other liabilities

		As at
		March 31, 2021				December 31, 2021
Non-current
Employee benefits obligations		₹	3,055			₹	3,640
Others			4,780				4,598
		₹	7,835			₹	8,238
Current
Statutory and other liabilities		₹	9,266			₹	9,641
Employee benefits obligations			14,401				13,897
Advance from customers			362				134
Others			523				566
		₹	24,552			₹	24,238
		₹	32,387			₹	32,476

16. Provisions

		As at
		March 31, 2021				December 31, 2021
Non-current
Provision for warranty		₹	2			₹	6
		₹	2			₹	6
Current
Provision for warranty		₹	213			₹	288
Others			463				517
		₹	676			₹	805
		₹	678			₹	811

18

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

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

(in millions)

		As at
		March 31, 2021												December 31, 2021
		Notional								Fair value				Notional								Fair value
Designated derivative instruments
Sell: Forward contracts			USD				1,577			₹	2,293				USD				1,411			₹	1,740
			€				109			₹	114				€				196			₹	663
			£				96			₹	(254	)			£				171			₹	403
			AUD				103			₹	(246	)			AUD				170			₹	226
Range forward option contracts			USD				138			₹	385				USD				431			₹	313
			€				20			₹	24				€				6			₹	(2	)
			£				55			₹	(116	)			£				35			₹	82
			AUD				34			₹	(18	)			AUD				11			₹	11
Non-designated derivative instruments
Sell: Forward contracts *			USD				1,638			₹	480				USD				1,641			₹	1,428
			€				99			₹	202				€				94			₹	1
			£				104			₹	98				£				152			₹	(9	)
			AUD				29			₹	11				AUD				39			₹	44
			SGD				9			₹	5				SGD				4			₹	(1	)
			ZAR				22			₹	(1	)			ZAR				8			₹	^
			CAD				30			₹	3				CAD				38			₹	22
			SAR				137			₹	(1	)			SAR				125			₹	^
			PLN				8			₹	2				PLN				14			₹	^
			CHF				10			₹	13				CHF				10			₹	(6	)
			QAR				15			₹	(6	)			QAR				11			₹	(4	)
			TRY				47			₹	42				TRY				30			₹	60
			NOK				4			₹	^				NOK				13			₹	3
			OMR				2			₹	(1	)			OMR				2			₹	(1	)
			SEK				42			₹	10				SEK				17			₹	(1	)
			JPY				370			₹	6				JPY				513			₹	3
			DKK				—			₹	—				DKK				2			₹	1
			AED				—			₹	—				AED				9			₹	^
Buy: Forward contracts			SEK				37			₹	(15	)			SEK				22			₹	(3	)
			DKK				45			₹	(12	)			DKK				16			₹	(2	)
			CHF				2			₹	(6	)			CHF				2			₹	2
			RMB				30			₹	(2	)			RMB				—			₹	—
			AED				9			₹	^				AED				35			₹	^
			JPY				—			₹	—				JPY				944			₹	(3	)
			CNH				—			₹	—				CNH				11			₹	1
			NOK				—			₹	—				NOK				12			₹	^
										₹	3,010											₹	4,971

^ Value is less than ₹ 1.

* USD 1,638 and USD 1,641 includes USD/PHP sell forward of USD 244 and USD 278 as at March 31, 2021 and December 31, 2021, respectively.

Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging instrument, including whether the hedging instrument is expected to offset changes in cash flows of hedged items.

19

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,
		2020				2021
Balance as at the beginning of the period		₹	(2,876	)		₹	2,182
Changes in fair value of effective portion of derivatives			3,082				4,128
Net (gain)/loss reclassified to statement of income on occurrence of hedged transactions *			1,149				(2,874	)
Gain/(loss) on cash flow hedging derivatives, net		₹	4,231			₹	1,254
Balance as at the end of the period		₹	1,355			₹	3,436
Deferred tax thereon			(293	)			(841	)
Balance as at the end of the period, net of deferred tax		₹	1,062			₹	2,595

* Includes net (gain)/loss reclassified to revenue of ₹ 1,248 and ₹ (3,583) for the nine months ended December 31, 2020 and 2021, respectively and net (gain)/loss reclassified to cost of revenues of ₹ (99) and ₹ 709 for the nine months ended December 31, 2020 and 2021, respectively.

As at December 31, 2020 and 2021, 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.

Fair value:

Financial assets and liabilities include cash and cash equivalents, trade receivables, unbilled receivables, finance lease receivables, employee and other advances, eligible current and non-current assets, loans, borrowings and bank overdrafts, trade payables and accrued expenses, and eligible current liabilities and non-current liabilities.

The fair value of cash and cash equivalents, trade receivables, unbilled receivables, loans, borrowings and bank overdrafts, trade payables and accrued expenses, other current financial assets and liabilities approximate their carrying amount largely due to the short-term nature of these instruments. The Company’s long-term debt has been contracted at market rates of interest. Accordingly, the carrying value of such long-term debt approximates fair value. Further, finance lease receivables are periodically evaluated based on individual credit worthiness of customers. Based on this evaluation, the Company records allowance for estimated losses on these receivables. As at March 31, 2021 and December 31, 2021, the carrying value of such receivables, net of allowances approximates the fair value.

Investments in short-term mutual funds and fixed maturity plans, 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 non-convertible debentures, government securities, 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 or FVTPL is determined using market and income approaches.

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

Fair value hierarchy

The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows:

Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 – Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

20

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

Particular		As at March 31, 2021																As at December 31, 2021
		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		₹	2,998			₹	—			₹	2,998			₹	—			₹	3,516			₹	—			₹	3,516			₹	—
Others			1,082				—				1,082				—				1,796				—				1,796				—
Investments:
Short-term mutual funds			23,502				23,502				—				—				24,485				24,485				—				—
Equity instruments			10,572				26				319				10,227				15,398				52				566				14,780
Non-convertible debentures, government securities, commercial papers and bonds			131,382				2,217				129,165				—				194,630				1,271				193,359				—
Fixed maturity plan mutual funds			—				—				—				—				509				—				509				—
Liabilities
Derivative instruments:
Cash flow hedges		₹	(816	)		₹	—			₹	(816	)		₹	—			₹	(80	)		₹	—			₹	(80	)		₹	—
Others			(254	)			—				(254	)			—				(261	)			—				(261	)			—
Contingent consideration			(2,293	)			—				—				(2,293	)			(4,422	)			—				—				(4,422	)

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

Derivative instruments (assets and liabilities): The Company enters into derivative financial instruments with various 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, 2021, 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 Non-convertible debentures, government securities, 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.

Investment in equity instruments and fixed maturity plan mutual funds: Fair value of these instruments is derived based on the indicative quotes of price prevailing in the market as at reporting date.

The following methods and assumptions were used to estimate the fair value of the level 3 financial instruments included in the above table.

Investment in equity instruments: Fair value of these instruments is determined using market and income approaches.

Details of assets and liabilities considered under Level 3 classification

		As at
Investment in equity instruments		March 31, 2021				December 31, 2021
Balance at the beginning of the period		₹	9,178			₹	10,227
Additions			1,575				3,193
Disposals			(1,256	)			(7,647	)
Transfers out of Level 3			(27	)			—
Gain recognized in statement of income			—				(3	)
Gain recognized in other comprehensive income			1,009				8,883
Translation adjustment			(252	)			127
Balance at the end of the period		₹	10,227			₹	14,780

		As at
Contingent consideration		March 31, 2021				December 31, 2021
Balance at the beginning of the period		₹	—			₹	(2,293	)
Additions			(2,293	)			(2,480	)
Reversals			—				351
Payouts			—				117
Finance expense recognized in statement of income			(25	)			(56	)
Translation adjustment			25				(61	)
Balance at the end of the period		₹	(2,293	)		₹	(4,422	)

21

18. Foreign currency translation reserve and Other reserves

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

		Nine months ended December 31,
		2020				2021
Balance at the beginning of the period		₹	23,539			₹	22,936
Translation difference related to foreign operations, net			851				(189	)
Reclassification of foreign currency translation differences on sale of investment in associates and liquidation of subsidiaries to statement of income			—				(151	)
Balance at the end of the period		₹	24,390			₹	22,596

The movement in other reserves is summarized below:

		Other Reserves
Particulars		Remeasurements of the defined benefit plans				Investment in debt instruments measured at fair value through OCI				Investment in equity instruments measured at fair value through OCI				Capital Redemption Reserve
As at April 1, 2020		₹	(1,120	)		₹	2,386			₹	162			₹	647
Other comprehensive income			(213	)			2,868				465				—
As at December 31, 2020		₹	(1,333	)		₹	5,254			₹	627			₹	647
As at April 1, 2021			(897	)		₹	4,237			₹	1,378			₹	1,122
Other comprehensive income			(675	)			(995	)			8,248				—
As at December 31, 2021		₹	(1,572	)		₹	3,242			₹	9,626			₹	1,122

19. Income taxes

		Three months ended December 31,								Nine months ended December 31,
		2020				2021				2020				2021
Income tax expense as per the interim condensed consolidated statement of income		₹	8,524			₹	8,063			₹	22,590			₹	22,547
Income tax included in other comprehensive income on:
Gains/(losses) on investment securities			63				(194	)			586				658
Gains on cash flow hedging derivatives			65				28				854				389
Remeasurements of the defined benefit plans			(20	)			52				(61	)			(216	)
		₹	8,632			₹	7,949			₹	23,969			₹	23,378

Income tax expense consists of the following:

		Three months ended December 31,								Nine months ended December 31,
		2020				2021				2020				2021
Current taxes
Domestic		₹	4,195			₹	5,102			₹	12,516			₹	23,399
Foreign			2,629				2,633				5,351				(249	)
		₹	6,824			₹	7,735			₹	17,867				23,150
Deferred taxes
Domestic		₹	2,153			₹	644			₹	5,383			₹	1,319
Foreign			(453	)			(316	)			(660	)			(1,922	)
		₹	1,700			₹	328			₹	4,723			₹	(603	)
		₹	8,524			₹	8,063			₹	22,590			₹	22,547

Income tax expenses are net of (provision recorded)/reversal of taxes pertaining to earlier periods, amounting to ₹ 1,564 and ₹ 548 for the three months ended December 31, 2020 and 2021 respectively, and ₹ 3,124 and ₹ 3,768 for the nine months ended December 31, 2020 and 2021 respectively. The reversal of ₹ 3,768 includes a reversal on account of closure of tax assessments of the Company for earlier years.

20. Revenues

The tables below present disaggregated revenue from contracts with customers by business segment, sector and nature of contract. The Company believes that the below disaggregation best depicts the nature, amount, timing and uncertainty of revenue and cash flows from economic factors.

22

Information on disaggregation of revenues for the three months ended December 31, 2020 is as follows:

		IT Services																				IT Products				ISRE				Total
		Americas 1				Americas 2				Europe				APMEA				Total
A. Revenue
Rendering of services		₹	44,877			₹	44,545			₹	42,694			₹	20,640			₹	152,756			₹	—			₹	2,387			₹	155,143
Sale of products			—				—				—				—				—				1,557				—				1,557
		₹	44,877			₹	44,545			₹	42,694			₹	â20,640			₹	152,756			₹	1,557			₹	2,387			₹	156,700
B. Revenue by sector
Banking, Financial Services and Insurance		₹	747			₹	25,736			₹	14,359			₹	5,789			₹	46,631
Health			16,630				1				3,370				1,209				21,210
Consumer			17,234				571				4,591				2,598				24,994
Communications			1,733				304				2,031				3,916				7,984
Energy, Natural Resources and Utilities			113				6,694				8,170				5,014				19,991
Manufacturing			65				5,909				5,932				721				12,627
Technology			8,355				5,330				4,241				1,393				19,319
		₹	44,877			₹	44,545			₹	42,694			₹	20,640			₹	152,756			₹	1,557			₹	2,387			₹	156,700
C. Revenue by nature of contract
Fixed price and volume based		₹	24,981			₹	27,306			₹	28,627			₹	13,588			₹	94,502			₹	—			₹	2,012			₹	96,514
Time and material			19,896				17,239				14,067				7,052				58,254				—				375				58,629
Products			—				—				—				—				—				1,557				—				1,557
			44,877			₹	44,545			₹	42,694			₹	20,640			₹	152,756			₹	1,557			₹	2,387			₹	156,700

Information on disaggregation of revenues for the three months ended December 31, 2021 is as follows:

		IT Services																				IT Products				ISRE				Total
		Americas 1				Americas 2				Europe				APMEA				Total
A. Revenue
Rendering of services		₹	56,356			₹	60,727			₹	59,232			₹	23,429			₹	199,744			₹	—			₹	1,623			₹	201,367
Sale of products			—				—				—				—				—				1,769								1,769
		₹	56,356			₹	60,727			₹	159,232			₹	23,429			₹	199,744			₹	1,769			₹	1,623			₹	203,136
B. Revenue by sector
Banking, Financial Services and Insurance		₹	923			₹	37,710			₹	23,724			₹	7,870			₹	70,227
Health			18,871				37				3,790				918				23,616
Consumer			23,354				680				8,003				3,280				35,317
Communications			2,608				301				3,287				3,802				9,998
Energy, Natural Resources and Utilities			176				8,482				9,919				4,808				23,385
Manufacturing			63				6,731				5,808				809				13,411
Technology			10,361				6,786				4,701				1,942				23,790
		₹	56,356			₹	60,727			₹	59,232			₹	23,429			₹	199,744			₹	1,769			₹	1,623			₹	203,136
C. Revenue by nature of contract
Fixed price and volume based		₹	31,075			₹	33,931			₹	35,575			₹	14,386			₹	114,967							₹	1,262			₹	116,229
Time and material			25,281				26,796				23,657				9,043				84,777								361				85,138
Products																			—				1,769								1,769
		₹	56,356			₹	60,727			₹	59,232			₹	23,429			₹	199,744			₹	1,769			₹	1,623			₹	203,136

23

Information on disaggregation of revenues for the nine months ended December 31, 2020 is as follows:

		IT Services																				IT Products				ISRE				Total
		Americas 1				Americas 2				Europe				APMEA				Total
A. Revenue
Rendering of services		₹	131,075			₹	132,713			₹	119,673			₹	61,359			₹	¯444,820			₹	—			₹	6,610			₹	451,430
Sale of products			—				—				—				—				—				5,546				—				5,546
		₹	131,075			₹	132,713			₹	119,673			₹	61,359			₹	444,820			₹	5,546			₹	6,610			₹	456,976
B. Revenue by sector
Banking, Financial Services and Insurance		₹	1,802			₹	77,222			₹	41,013			₹	16,910			₹	136,947
Health			48,027				10				9,157				3,887				61,081
Consumer			49,808				1,706				12,532				7,833				71,879
Communications			4,623				836				5,948				11,736				23,143
Energy, Natural Resources and Utilities			300				19,655				22,946				15,132				58,033
Manufacturing			196				17,529				16,480				2,281				36,486
Technology			26,319				15,755				11,597				3,580				57,251
		₹	131,075			₹	132,713			₹	119,673			₹	61,359			₹	444,820			₹	5,546			₹	6,610			₹	456,976
C. Revenue by nature of contract
Fixed price and volume based		₹	73,471			₹	81,326			₹	78,548			₹	40,885			₹	274,230			₹	—			₹	5,261			₹	279,491
Time and material			57,604				51,387				41,125				20,474				170,590				—				1,349				171,939
Products			—				—				—				—				—				5,546				—				5,546
		₹	131,075			₹	132,713			₹	119,673			₹	61,359			₹	444,820			₹	5,546			₹	6,610			₹	456,976

Information on disaggregation of revenues for the nine months ended December 31, 2021 is as follows:

		IT Services																				IT Products				ISRE				Total
		Americas 1				Americas 2				Europe				APMEA				Total
A. Revenue
Rendering of services		₹	158,764			₹	174,469			₹	71,624			₹	67,076			₹	571,933			₹	—			₹	5,427			₹	577,360
Sale of products			—				—				—				—				—				4,974				—				4,974
		₹	158,764			₹	174,469			₹	171,624			₹	67,076			₹	71,933			₹	4,974			₹	5,427			₹	582,334
B. Revenue by sector
Banking, Financial Services and Insurance		₹	1,665			₹	105,518			₹	68,034			₹	22,033			₹	197,250
Health			54,446				82				10,365				2,510				67,403
Consumer			65,509				1,852				23,330				9,036				99,727
Communications			6,941				898				9,651				11,276				28,766
Energy, Natural Resources and Utilities			498				26,863				29,004				14,359				70,724
Manufacturing			170				19,054				17,391				2,303				38,918
Technology			29,535				20,202				13,849				5,559				69,145
		₹	158,764			₹	174,469			₹	171,624			₹	67,076			₹	571,933			₹	4,974			₹	5,427			₹	582,334
C. Revenue by nature of contract
Fixed price and volume based		₹	86,788			₹	98,557			₹	103,967			₹	42,047			₹	331,359			₹	—			₹	4,305			₹	335,664
Time and material			71,976				75,912				67,657				25,029				240,574				—				1,122				241,696
Products			—				—				—				—				—				4,974				—				4,974
		₹	158,764			₹	174,469			₹	171,624			₹	67,076			₹	571,933			₹	4,974			₹	5,427			₹	582,334

24

21. Expenses by nature

		Three months ended December 31,								Nine months ended December 31,
		2020				2021				2020				2021
Employee compensation		₹	82,769			₹	114,860			₹	246,199			₹	328,773
Sub-contracting/ technical fees			20,657				28,190				62,115				80,086
Cost of hardware and software			1,441				1,705				5,465				5,083
Travel			1,394				2,281				3,948				5,361
Facility expenses			4,996				6,352				14,967				18,222
Depreciation, amortization and impairment*			7,927				7,459				20,661				23,566
Communication			1,462				1,391				4,617				4,371
Legal and professional fees			1,437				2,015				3,972				5,942
Rates, taxes and insurance			636				1,175				2,540				3,208
Marketing and brand building			283				499				679				1,434
Lifetime expected credit loss/ (write-back)			(230	)			(203	)			1,615				(408	)
Miscellaneous expenses**			681				3,078				3,340				6,980
Total cost of revenues, selling and marketing expenses and general and administrative expenses		₹	123,453			₹	168,802			₹	370,118			₹	482,618

* Depreciation, amortization and impairment includes an impairment charge on certain software platforms, capital work-in-progress and intangible assets amounting to ₹ 1,673 and ₹ 2,427, for the three months and nine months ended December 31, 2020, respectively.

** Miscellaneous expenses for the three months and nine months ended December 31, 2020, includes an amount of ₹ Nil and ₹ 991, respectively towards COVID-19 contributions.

22. Finance expenses

		Three months ended December 31,								Nine months ended December 31,
		2020				2021				2020				2021
Interest expense		₹	1,220			₹	1,403			₹	3,315			₹	3,608
Exchange fluctuation loss on foreign currency borrowings			180				—				651				—
		₹	1,400			₹	1,403			₹	3,966			₹	3,608

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

		Three months ended December 31,								Nine months ended December 31,
		2020				2021				2020				2021
Interest income		₹	5,072			₹	3,185			₹	14,710			₹	9,493
Dividend income			—				—				1				2
Exchange fluctuation gain on foreign currency borrowings			—				—				—				1,485
Net gain from investments classified as FVTPL			582				392				1,171				965
Net gain from investments classified as FVTOCI			321				1				583				366
Finance and other income		₹	5,975			₹	3,578			₹	16,465			₹	12,311
Foreign exchange gains/(losses), net, on financial instruments measured at FVTPL		₹	270			₹	1,224			₹	3,422			₹	1,549
Other foreign exchange gains/(losses), net			296				(37	)			(1,313	)			1,731
Foreign exchange gains/(losses), net		₹	566			₹	1,187			₹	2,109			₹	3,280

24. 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,
		2020				2021				2020				2021
Profit attributable to equity holders of the Company		₹	29,667			₹	29,690			₹	78,225			₹	91,318
Weighted average number of equity shares outstanding			5,696,798,493				5,467,954,878				5,694,731,405				5,465,359,077
Basic earnings per share		₹	5.21			₹	5.43			₹	13.74			₹	16.71

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

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

25

For the three and nine months ended December 31, 2020, the calculation of the potential dilutive effect on earnings per share on buyback of equity shares includes the incremental equity shares arrived as the difference between the number of ordinary shares assumed at the fair value (determined as the average market price of the Company’s shares during the period) and the number of ordinary shares received from satisfying the buyback offer.

		Three months ended December 31,								Nine months ended December 31,
		2020				2021				2020				2021
Profit attributable to equity holders of the Company		₹	29,667			₹	29,690			₹	78,225			₹	91,318
Weighted average number of equity shares outstanding			5,696,798,493				5,467,954,878				5,694,731,405				5,465,359,077
Effect of dilutive equivalent share options			12,157,947				13,249,943				12,356,425				13,407,535
Dilutive effect from proposed buyback of equity shares			32,114,026				—				105,691,275				—
Weighted average number of equity shares for diluted earnings per share			5,741,070,466				5,481,204,821				5,812,779,105				5,478,766,612
Diluted earnings per share		₹	5.17			₹	5.42			₹	13.46			₹	16.67

Diluted earnings per share for each of the three months ended June 30, September 30 and December 31 will not add up to diluted earnings per share for the nine months ended December 31, 2020, on account of dilutive effect of liability for proposed buyback of equity shares.

25. Employee compensation

		Three months ended December 31,								Nine months ended December 31,
		2020				2021				2020				2021
Salaries and bonus		₹	79,432			₹	110,094			₹	236,124			₹	314,754
Employee benefits plans			2,760				3,961				8,269				11,585
Share-based compensation*			577				805				1,806				2,434
		₹	82,769			₹	114,860			₹	246,199			₹	328,773

* Includes ₹ 174 and ₹ 6 the three months ended December 31, 2020 and 2021 respectively, ₹ 583 and ₹ 36 for the nine months ended December 31, 2020, and 2021 respectively, towards cash settled ADS RSUs.

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,
		2020				2021				2020				2021
Cost of revenues		₹	70,286			₹	97,347			₹	209,540			₹	279,119
Selling and marketing expenses			7,779				10,897				23,163				30,541
General and administrative expenses			4,704				6,616				13,496				19,113
		₹	82,769			₹	114,860			₹	246,199			₹	328,773

The Company has granted 1,235,938 and 1,316,899 options under RSU option plan during the three and nine months ended December 31, 2021 (2,402,440 and 2,472,440 for the three and nine months ended December 31, 2020); 2,831,623 and 3,649,391 options under ADS option plan during the three and nine months ended December 31, 2021 (1,085,420 and 1,701,420 for the three and nine months ended December 31, 2020).

The Company has also granted 1,134,173 Performance based stock options (RSU) during the three and nine months ended December 31, 2021, respectively (2,879,860 and 2,969,860 for the three and nine months ended December 31, 2020); 2,121,329 Performance based stock options (ADS) during the three and nine months ended December 31, 2021, respectively (1,452,980 and 2,376,980 for three and nine months ended December 31, 2020).

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).

26. Other operating income/(loss), net

The Company has partially met the first and second-year business targets pertaining to sale of hosted data center business concluded during the year ended March 31, 2019. Change in fair value of the callable units pertaining to achievement of cumulative business targets amounting to ₹ Nil and ₹ (81) for the three and nine months ended December 31, 2020 has been recognized under other operating income/(loss), net.

During the nine months ended December 31, 2021, as a result of acquisition by another investor, the Company sold its investment in Ensono Holdings, LLC for a consideration of ₹ 5,614 and recognized a cumulative gain of ₹ 1,249 (net of tax ₹ 429) in other comprehensive income being profit on sale of investment designated as FVTOCI. The Company also recognized ₹ 1,230 for the nine months ended December 31, 2021 under other operating income/(loss), net towards change in fair value of callable units pertaining to achievement of cumulative business targets.

During the nine months ended December 31, 2021, as a result of acquisition of by another investor, the Company sold its investment in Denim Group, Ltd. and Denim Group Management, LLC (“Denim Group”), accounted for using the equity method, for a consideration of ₹ 1,648 and recognized a cumulative gain of ₹ 949 in other operating income/(loss), net including reclassification of exchange differences on foreign currency translation.

26

27. Commitments and contingencies

Capital commitments: As at March 31, 2021 and December 31, 2021 the Company had committed to spend ₹ 7,490 and ₹ 12,291 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, 2021 and December 31, 2021, guarantees provided by banks on behalf of the Company to the Indian Government, customers and certain other agencies aggregate to ₹ 17,128 and ₹ 15,341 respectively, as part of the bank line of credit.

Contingencies and lawsuits: The Company is subject to legal proceedings and claims resulting from tax assessment orders/ penalty notices issued under the Income Tax Act, 1961, 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 Company’s assessments are completed for the years up to March 31, 2018. The Company has received demands on multiple tax issues. These claims are primarily arising out of denial of deduction under section 10A of the Income Tax Act, 1961 in respect of profit earned by the Company’s undertaking in Software Technology Park at Bengaluru, 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 which either has been or may be contested by the Income tax authorities before the Supreme Court of India. Other claims relate to disallowance of tax benefits on profits earned from Software Technology Park and Special Economic Zone units, capitalization of research and development expenses, transfer pricing adjustments on intercompany / inter unit transactions and other issues.

Income tax claims against the Company amounting to ₹ 80,032 and ₹ 91,431 are not acknowledged as debt as at March 31, 2021 and December 31, 2021, 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 amounting to ₹ 11,413 and ₹ 11,669 as of March 31, 2021 and December 31, 2021, respectively. However, the resolution of these disputed demands is not likely to have a material and adverse effect on the results of operations or the financial position of the Company.

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.

28. Segment information

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

IT Services: During the year ended March 31, 2021, in order to broad base our growth, the Company re-organized IT Services segment to four Strategic Market Units (“SMUs”) - Americas 1, Americas 2, Europe and Asia Pacific Middle East Africa (“APMEA”).

Americas 1 and Americas 2 are primarily organized by industry sector, while Europe and APMEA are organized by countries.

Americas 1 includes the entire business of Latin America (“LATAM”) and the following industry sectors in the United States of America: healthcare and medical devices, consumer goods and life sciences, retail, transportation and services, communications, media and information services, technology products and platforms. Americas 2 includes the entire business in Canada and the following industry sectors in the United States of America: banking, financial services and insurance, manufacturing, hi-tech, energy and utilities. Europe consists of the United Kingdom and Ireland, Switzerland, Germany, Benelux, the Nordics and Southern Europe. APMEA consists of Australia and New Zealand, India, Middle East, South East Asia, Japan and Africa.

The corresponding information for the three and nine months ended December 31, 2020 has been re-stated to give effect to the above changes.

Revenue from each customer is attributed to the respective SMUs based on the location of the customer’s primary buying center of such services. With respect to certain strategic global customers, revenue may be generated from multiple countries based on such customer’s buying centers, but the total revenue related to these strategic global customers are attributed to a single SMU based on the geographical location of key decision makers.

Prior to the Company’s re-organization of its IT services segment, the IT services segment was organized by seven industry verticals: 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”).

Our IT Services segment provides a range of IT and IT enabled services which include digital strategy advisory, customer centric design, technology consulting, IT consulting, custom application design, development, re-engineering and maintenance, systems integration, package implementation, cloud and infrastructure services, business process services, cloud, mobility and analytics services, research and development and hardware and software design.

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IT Products: The Company is a value-added reseller of security, packaged and SaaS 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 these items is reported as revenue from the sale of IT Products.

ISRE: This segment consists of IT Services offerings to entities and/or 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.

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Information on reportable segments for the three months ended December 31, 2020, is as follows:

		IT Services																				IT Products				ISRE				Reconciling Items				Total
		Americas 1				Americas 2				Europe				APMEA				Total
Revenue		₹	45,015			₹	44,702			₹	42,880			₹	20,717			₹	153,314			₹	1,563			₹	2,388			₹	1			₹	157,266
Other operating income/(loss), net			—				—				—				—				—				—				—				—				—
Segment Result			8,075				10,190				9,283				2,778				30,326				78				471				(7	)			30,868
Unallocated																			2,945				—				—				—				2,945
Segment Result Total																		₹	33,271			₹	78			₹	471			₹	(7	)		₹	33,813
Finance expenses																																			(1,400	)
Finance and other income																																			5,975
Share of net profit/(loss) of associates accounted for using the equity method																																			101
Profit before tax																																		₹	38,489
Income tax expense																																			(8,524	)
Profit for the period																																		₹	29,965
Depreciation, amortization and impairment																																		₹	7,927

Information on reportable segments for the three months ended December 31, 2021, is as follows:

		IT Services																				IT Products				ISRE				Reconciling Items				Total
		Americas 1				Americas 2				Europe				APMEA				Total
Revenue		₹	56,644			₹	61,076			₹	59,620			₹	23,596			₹	200,936			₹	1,767			₹	1,623			₹	(3	)		₹	204,323
Other operating income/(loss), net			—				—				—				—				14				—				—				—				14
Segment Result			11,390				12,057				9,172				2,483				35,102				96				134				16				35,348
Unallocated																			173				—				—				—				173
Segment Result Total																		₹	35,289			₹	96			₹	134			₹	16			₹	35,535
Finance expenses																																			(1,403	)
Finance and other income																																			3,578
Share of net profit/(loss) of associates accounted for using the equity method																																			76
Profit before tax																																		₹	37,786
Income tax expense																																			(8,063	)
Profit for the period																																		₹	29,723
Depreciation, amortization and impairment																																		₹	7,459

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Information on reportable segments for the nine months ended December 31, 2020, is as follows:

		IT Services																				IT Products				ISRE				Reconciling Items				Total
		Americas 1				Americas 2				Europe				APMEA				Total
Revenue		₹	131,581			₹	133,346			₹	120,334			₹	61,637			₹	446,898			₹	5,568			₹	6,610			₹	9			₹	459,085
Other operating income/(loss), net			—				—				—				—				(81	)			—				—				—				(81	)
Segment Result			23,177				31,089				22,969				8,402				85,637				(100	)			474				(940	)			85,071
Unallocated																			3,896				—				—				—				3,896
Segment Result Total																		₹	89,452			₹	(100	)		₹	474			₹	(940	)		₹	88,886
Finance expense																																			(3,966	)
Finance and other income																																			16,465
Share of net profit/(loss) of associates accounted for using the equity method																																			126
Profit before tax																																		₹	101,511
Income tax expense																																			(22,590	)
Profit for the period																																		₹	78,921
Depreciation, amortization and impairment																																		₹	20,661

Information on reportable segments for the nine months ended December 31, 2021, is as follows:

		IT Services																				IT Products				ISRE				Reconciling Items				Total
		Americas 1				Americas 2				Europe				APMEA				Total
Revenue		₹	159,532			₹	175,441			₹	172,700			₹	67,543			₹	575,216			₹	4,972			₹	5,427			₹	(1	)		₹	585,614
Other operating income/(loss), net			—				—				—				—				2,179				—				—				—				2,179
Segment Result			31,290				35,226				26,683				8,577				101,776				137				1,002				8				102,923
Unallocated																			73				—				—				—				73
Segment Result Total																		₹	104,028			₹	137			₹	1,002			₹	8			₹	105,175
Finance expense																																			(3,608	)
Finance and other income																																			12,311
Share of net profit/(loss) of associates accounted for using the equity method																																			73
Profit before tax																																		₹	113,951
Income tax expense																																			(22,547	)
Profit for the period																																		₹	91,404
Depreciation, amortization and impairment																																		₹	23,566

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Revenues from India, being Company’s country of domicile, is ₹ 6,399 and ₹ 6,620 for three months ended December 31, 2020 and 2021, respectively and ₹ 19,945 and ₹ 19,143 for nine months ended December 31, 2020 and 2021, respectively

Revenues from United States of America and United Kingdom contributed more than 10% of Company’s total revenues as per table below:

		Three months ended December 31,								Nine months ended December 31,
		2020				2021				2020				2021
United States of America		₹	84,133			₹	110,731			₹	249,777			₹	312,380
United Kingdom			17,379				26,135				48,758				74,514
		₹	101,512			₹	136,866			₹	298,535			₹	386,894

No customer individually accounted for more than 10% of the revenues during the three and nine months ended December 31, 2020 and 2021.

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) Effective beginning of fiscal year ended March 31, 2021, revenue from sale of traded cloud-based licenses is no longer reported in IT Services revenue and finance income on deferred consideration earned under total outsourcing contracts is not included in segment revenue. Further, for evaluating performance of the individual operating segments, stock compensation expense is allocated based on the accelerated amortization as per IFRS 2. Segment information for the three and nine months ended December 31, 2020 has been re-stated to give effect to these changes.

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

c) Revenue from sale of company owned intellectual properties is reported as part of IT Services revenues.

d) 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).

e) During the three and nine months ended December 31, 2020, the Company has contributed ₹ Nil and ₹ 991 respectively towards COVID-19 and is reported in Reconciling items.

f) Other operating income/(loss) of ₹ Nil and ₹ 14 is included as part of IT Services segment results for three months ended December 31, 2020 and 2021 respectively and ₹ (81) and ₹ 2,179 is included as part of IT Services segment results for nine months ended December 31, 2020 and 2021 respectively. Refer to Note 26.

g) Segment results are after considering the impact of impairment charge of ₹ 995 in Americas 1 for the three months ended December 31, 2020 and ₹ 1,257 and ₹ 192 in Americas 1 and Europe, respectively, for the nine months ended December 31, 2020. Further, an impairment charge of ₹ 678 for the three and nine months ended December 31, 2020, towards certain marketing-related intangible assets and software platform recognized on acquisitions, is allocated to all IT Services SMUs. The remaining impairment charge of ₹ Nil and ₹ 300 for the three and nine months ended December 31, 2020, respectively is included under unallocated. (Refer to Note 4, 6 and 21).

h) Segment results of IT Services segment are after recognition of share-based compensation expense ₹ 577 and ₹ 805 for the three months ended December 31, 2020 and 2021, respectively and ₹ 1,806 and ₹ 2,434 for the nine months ended December 31, 2020 and 2021, respectively.

29. List of subsidiaries and investments accounted for using equity method as at December 31, 2021 is provided below:

Subsidiaries		Subsidiaries		Subsidiaries		Country of Incorporation
Wipro, LLC						USA
		Wipro Gallagher Solutions, LLC				USA
				Wipro Opus Risk Solutions LLC (formerly known as Wipro Opus Mortgage Solutions LLC)		USA
		Wipro Insurance Solutions, LLC				USA
		Wipro IT Services, LLC				USA
				HealthPlan Services, Inc. **		USA
				Wipro Appirio, Inc. **		USA
				Designit North America, Inc.		USA
				Infocrossing, LLC		USA
				Wipro US Foundation		USA
				International TechneGroup Incorporated **		USA
				Wipro Designit Services, Inc. **		USA
				Wipro VLSI Design Services, LLC		USA
				Cardinal US Holdings, Inc**		USA
				LeanSwift Solutions, Inc**		USA
				Edgile, LLC		USA
Wipro Overseas IT Services Private Limited						India
Wipro Japan KK						Japan
		Designit Tokyo Ltd.				Japan
Wipro Shanghai Limited						China

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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
				Designit T.L.V Ltd.		Israel
				Designit Spain Digital, S.L.U		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 Gulf LLC				Sultanate of Oman
		Wipro Bahrain Limited Co. W.L.L				Bahrain
		Wipro 4C NV				Belgium
				Wipro 4C Danmark ApS		Denmark
				Wipro 4C Nederland B.V (formerly known as 4C Nederland B.V)		Netherlands
				Wipro Weare4C UK Limited **		U.K.
				Wipro 4C Consulting France SAS		France
Wipro IT Services UK Societas						U.K.
		Wipro Doha LLC #				Qatar
		Wipro Technologies SA DE CV				Mexico
		Wipro Holdings Hungary Korlátolt Felelősségű Társaság				Hungary
				Wipro Holdings Investment Korlátolt Felelősségű 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
				Ampion Holdings 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 Peru SAC		Peru
				Wipro do Brasil Technologia Ltda**		Brazil
		Wipro Technologies SA				Argentina
		Wipro Technologies SRL				Romania
		PT. WT Indonesia				Indonesia
		Wipro (Thailand) Co. Limited				Thailand

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		Rainbow Software LLC				Iraq
		Cardinal Foreign Holdings S.á.r.l				Luxembourg
				Cardinal Foreign Holdings 2 S.á.r.l**		Luxembourg
Wipro Networks Pte Limited						Singapore
		Wipro (Dalian) Limited				China
		Wipro Technologies SDN BHD				Malaysia
Wipro Chengdu Limited						China
Wipro Philippines, Inc.						Philippines
Wipro IT Services Bangladesh Limited						Bangladesh
Wipro HR Services India Private Limited						India
Encore Theme Technologies Private Limited *						India
Wipro VLSI Design Services India Private Limited (Formerly known as Eximius Design India Private Limited)						India
Capco Technologies Private Limited						India

* All the above direct subsidiaries are 100% held by the Company except that the Company holds 83.4% of the equity securities of Encore Theme Technologies Private Limited, 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.

The remaining 16.6% equity securities of Encore Theme Technologies Private Limited will be acquired subject to and after receipt of certain regulatory approvals/confirmations.

# 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, HealthPlan Services, Inc, International TechneGroup Incorporated, Wipro Appirio, Inc., Wipro Designit Services, Inc., Wipro Weare4C UK Limited, Cardinal US Holdings, Inc, Cardinal Foreign Holdings 2 S.á.r.l, Ampion Holdings Pty Ltd, and LeanSwift Solutions, Inc are as follows:

Subsidiaries		Subsidiaries		Subsidiaries		Country of Incorporation
Wipro Portugal S.A.						Portugal
		Wipro Technologies GmbH				Germany
				Wipro IT Services Austria GmbH		Austria
				Wipro Business Solutions GmbH (formerly known as Metro-nom GmbH)***		Germany
Wipro do Brasil Technologia Ltda						Brazil
		Wipro Do Brasil Sistemetas De Informatica Ltd				Brazil
		Wipro do Brasil Servicos Ltda				Brazil
HealthPlan Services, Inc.						USA
		HealthPlan Services Insurance Agency, LLC				USA
International TechneGroup Incorporated						USA
		International TechneGroup Ltd.				U.K.
		ITI Proficiency Ltd				Israel
		International TechneGroup S.R.L.				Italy
				MechWorks S.R.L.		Italy
Wipro Appirio, Inc.						USA
		Wipro Appirio, K.K. (formerly known as Appirio, K.K)				Japan
		Topcoder, LLC.				USA
		Wipro Appirio (Ireland) Limited				Ireland
				Wipro Appirio UK Limited		U.K.

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Wipro Designit Services, Inc						USA
		Wipro Designit Services Limited				Ireland
Wipro Weare4C UK Limited						U.K.
		CloudSocius DMCC				UAE
Cardinal Foreign Holdings 2 S.á.r.l						Luxembourg
		Grove Holdings 2 S.á.r.l				Luxembourg
				The Capital Markets Company BV***		Belgium
				Capco Brasil Serviços E Consultoria Em Informática Ltda		Brazil
Cardinal US Holdings, Inc						USA
		The Capital Markets Company LLC				USA
				CAPCO (US) LLC		USA
		Capco Consulting Services LLC				USA
		Capco RISC Consulting LLC				USA
		ATOM Solutions LLC				USA
		NEOS Holdings LLC				USA
				NEOS LLC		USA
				NEOS Software LLC		USA
Ampion Holdings Pty Ltd						Australia
		Ampion Pty Ltd				Australia
				Crowdsprint Pty Ltd		Australia
				Revolution IT Pty Ltd		Australia
				Iris Holdco Pty Ltd***		Australia
LeanSwift Solutions, Inc						USA
		LeanSwift Solutions, LLC				USA
		LeanSwift AB				Sweden

*** Step Subsidiary details of The Capital Markets Company BV, Wipro Business Solutions GmbH (formerly known as Metro-nom GmbH) and Iris Holdco Pty Ltd are as follows:

Subsidiaries		Subsidiaries		Subsidiaries		Country of Incorporation
The Capital Markets Company BV						Belgium
		Capco Belgium BV				Belgium
		The Capital Markets Company (UK) Ltd				UK
				Capco (UK) 1, Limited		UK
		The Capital Markets Company Limited				Canada
				Capco (US) GP LLC****		USA
		The Capital Markets Company Limited				Hong Kong
				Capco Consulting Services (Guangzhou) Company Limited		China
		The Capital Markets Company s.r.o				Slovakia
		The Capital Markets Company S.A.S				France
		Capco Poland sp. z.o.o				Poland
		The Capital Markets Company S.á.r.l				Switzerland
				Andrion AG		Switzerland
		The Capital Markets Company BV				Netherlands
		CapAfric Consulting (Pty) Ltd				South Africa
		Capco Consulting Singapore Pte. Ltd				Singapore
		Capco Sweden AB				Sweden
		The Capital Markets Company GmbH				Germany
				Capco Austria GmbH		Austria
		Capco Consultancy (Malaysia) Sdn. Bhd				Malaysia
		Capco Greece Single Member P.C				Greece
		Capco Consultancy (Thailand) Ltd				Thailand
Wipro Business Solutions GmbH (formerly known as Metro-nom GmbH)						Germany
		Wipro Technology Solutions S.R.L (formerly known as Metro Systems Romania S.R.L)				Romania
Iris Holdco Pty Ltd						Australia
		Iris Bidco Pty Ltd				Australia
				Shelde Pty Ltd		Australia

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**** Step Subsidiary details of Capco (US) GP LLC is as follows:

Subsidiaries		Subsidiaries		Subsidiaries		Country of Incorporation
Capco (US) GP LLC						USA
		Capco (Canada) GP ULC				Canada

As at December 31, 2021, the Company held 43.7% interest in Drivestream Inc, 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
Capco (Canada) LP@		Canada

^@  The Capital Markets Company Limited (Canada) and Capco (Canada) GP ULC act as Limited and General Partners, respectively.

30. The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the Company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from stake holders which are under active consideration by the Ministry. Based on an initial assessment by the Company and its Indian subsidiaries, the additional impact on Provident Fund contributions by the Company and its Indian subsidiaries is not expected to be material, whereas, the likely additional impact on Gratuity liability / contributions by the Company and its Indian subsidiaries could be material. The Company and its Indian subsidiaries will complete their evaluation once the subject rules are notified and will give appropriate impact in the financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.

31. Buyback of equity shares during the year ended March 31,2021

On October 13, 2020, the Board of Directors approved a proposal to Buyback up to 237,500,000 equity shares of ₹ 2 each (representing 4.16% of total paid-up equity share capital as at September 30, 2020) from the shareholders of the Company on a proportionate basis by way of a tender offer at a price of ₹ 400 per equity share for an aggregate amount not exceeding ₹ 95,000 (“Buyback”), in accordance with the provisions contained in the Securities and Exchange Board of India (Buy-back of Securities) Regulations, 2018, as amended and the Companies Act, 2013 and rules made thereunder (“Buyback Regulations”). Subsequently, the shareholders of the Company approved the Buyback through postal ballot (including e-voting) on November 16, 2020 and December 11, 2020 was fixed as the record date for the Buyback. In accordance with the provisions of the Buyback Regulations, the Letter of offer for the buyback was approved by SEBI on December 21, 2020 and tender period for Buyback opened on December 29, 2020 and closed on January 11, 2021. Consequently, the Company has recorded a liability towards gross obligation on Buyback of equity shares of ₹ 95,000 and the corresponding liability for tax on buyback of ₹ 22,021 as at December 31, 2020.

32. As part of customer contract with Metro AG, the Company has acquired Metro-nom GmbH (currently known as Wipro Business Solutions GmbH) and Metro Systems Romania S.R.L (currently known as Wipro Technology Solutions S.R.L), the IT units of Metro AG in Germany and Romania, respectively, for a consideration of ₹ 4,964. Considering the terms and conditions of the agreement, the Company has concluded that this transaction does not meet the definition of Business under IFRS 3“Business Combinations”. The transaction was consummated on April 1, 2021. The fair value of net assets acquired aggregating to ₹ 4,559 is allocated to respective assets and liabilities. The excess of consideration paid, and net assets taken over is accounted as ‘costs to obtain contract’, which will be amortized over the tenure of the contract as reduction in revenues.

33. Events after the reporting period

The Board of Directors in their meeting held on January 12, 2022, declared an interim dividend of ₹ 1/- (USD 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		Deepak M. Satwalekar		Thierry Delaporte
Chartered Accountants		Chairman		Director		Chief Executive Officer and
Firm 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 12, 2022

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