Exhibit 99.4
WIPRO LIMITED AND SUBSIDIARIES
INTERIM CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS UNDER IFRS
AS AT AND FOR THE THREE MONTHS AND YEAR ENDED March 31, 2018
1
WIPRO LIMITED AND SUBSIDIARIES
INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(₹ in millions, except share and per share data, unless otherwise stated)
As of March 31, | As of March 31, | |||||||||||||
Notes | 2017 | 2018 | 2018 | |||||||||||
Convenience translation into US dollar in millions (unaudited) Refer Note 2(iv) | ||||||||||||||
ASSETS | ||||||||||||||
Goodwill | 5 | 125,796 | 117,584 | 1,806 | ||||||||||
Intangible assets | 5 | 15,922 | 18,113 | 278 | ||||||||||
Property, plant and equipment | 4 | 69,794 | 64,443 | 990 | ||||||||||
Derivative assets | 13,14 | 106 | 41 | 1 | ||||||||||
Investments | 7 | 7,103 | 7,668 | 118 | ||||||||||
Investment in equity accounted investee | 7 | — | 1,206 | 19 | ||||||||||
Trade receivables | 3,998 | 4,446 | 68 | |||||||||||
Deferred tax assets | 3,098 | 6,908 | 106 | |||||||||||
Non-current tax assets | 12,008 | 18,349 | 282 | |||||||||||
Othernon-current assets | 10 | 16,793 | 15,726 | 242 | ||||||||||
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Totalnon-current assets | 254,618 | 254,484 | 3,910 | |||||||||||
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Inventories | 8 | 3,915 | 3,370 | 52 | ||||||||||
Trade receivables | 94,846 | 100,990 | 1,551 | |||||||||||
Other current assets | 10 | 30,751 | 30,596 | 469 | ||||||||||
Unbilled revenues | 45,095 | 42,486 | 653 | |||||||||||
Investments | 7 | 292,030 | 249,094 | 3,826 | ||||||||||
Current tax assets | 9,804 | 6,262 | 96 | |||||||||||
Derivative assets | 13,14 | 9,747 | 1,232 | 19 | ||||||||||
Cash and cash equivalents | 9 | 52,710 | 44,925 | 690 | ||||||||||
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538,898 | 478,955 | 7,356 | ||||||||||||
Assets held for sale | 28 | — | 27,201 | 418 | ||||||||||
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Total current assets | 538,898 | 506,156 | 7,774 | |||||||||||
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TOTAL ASSETS | 793,516 | 760,640 | 11,684 | |||||||||||
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EQUITY | ||||||||||||||
Share capital | 4,861 | 9,048 | 139 | |||||||||||
Share premium | 469 | 800 | 12 | |||||||||||
Retained earnings | 490,930 | 453,265 | 6,962 | |||||||||||
Share based payment reserve | 3,555 | 1,772 | 27 | |||||||||||
Other components of equity | 20,489 | 18,051 | 277 | |||||||||||
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Equity attributable to the equity holders of the Company | 520,304 | 482,936 | 7,417 | |||||||||||
Non-controlling interest | 2,391 | 2,410 | 37 | |||||||||||
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TOTAL EQUITY | 522,695 | 485,346 | 7,454 | |||||||||||
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LIABILITIES | ||||||||||||||
Long - term loans and borrowings | 11 | 19,611 | 45,268 | 695 | ||||||||||
Derivative liabilities | 13,14 | 2 | 7 | — | ||||||||||
Deferred tax liabilities | 6,614 | 3,059 | 47 | |||||||||||
Non-current tax liabilities | 9,547 | 9,220 | 142 | |||||||||||
Othernon-current liabilities | 12 | 5,500 | 4,230 | 65 | ||||||||||
Provisions | 12 | 4 | 3 | — | ||||||||||
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Totalnon-current liabilities | 41,278 | 61,787 | 949 | |||||||||||
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Loans, borrowings and bank overdrafts | 11 | 122,801 | 92,991 | 1,428 | ||||||||||
Trade payables and accrued expenses | 65,486 | 68,129 | 1,047 | |||||||||||
Unearned revenues | 16,150 | 17,139 | 264 | |||||||||||
Current tax liabilities | 8,101 | 9,417 | 145 | |||||||||||
Derivative liabilities | 13,14 | 2,708 | 2,210 | 34 | ||||||||||
Other current liabilities | 12 | 13,027 | 16,613 | 256 | ||||||||||
Provisions | 12 | 1,270 | 796 | 12 | ||||||||||
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229,543 | 207,295 | 3,186 | ||||||||||||
Liabilities directly associated with assets held for sale | 28 | — | 6,212 | 95 | ||||||||||
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Total current liabilities | 229,543 | 213,507 | 3,281 | |||||||||||
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TOTAL LIABILITIES | 270,821 | 275,294 | 4,230 | |||||||||||
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TOTAL EQUITY AND LIABILITIES | 793,516 | 760,640 | 11,684 | |||||||||||
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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 | |||||
forDeloitte Haskins & Sells LLP | Azim H Premji | N Vaghul | Abidali Neemuchwala | |||
Chartered Accountants | Executive Chairman | Director | Chief Executive Officer | |||
Firm’s Registration No: 117366W/W-100018 | & Managing Director | & Executive Director | ||||
Vikas Bagaria | Jatin Pravinchandra Dalal | M Sanaulla Khan | ||||
Partner | Chief Financial Officer | Company Secretary | ||||
Membership No. 60408 | ||||||
Bangalore | ||||||
April 25, 2018 |
2
WIPRO LIMITED AND SUBSIDIARIES
INTERIM CONDENSED CONSOLIDATED STATEMENT OF INCOME
(₹ in millions, except share and per share data, unless otherwise stated)
Three months ended March 31, | Year ended March 31, | |||||||||||||||||||||||||
Notes | 2017 | 2018 | 2018 | 2017 | 2018 | 2018 | ||||||||||||||||||||
Convenience translation into US dollar in millions (unaudited) Refer Note 2(iv) | Convenience translation into US dollar in millions (unaudited) Refer Note 2(iv) | |||||||||||||||||||||||||
Gross revenues | 17 | 139,875 | 137,686 | 2,115 | 550,402 | 544,871 | 8,368 | |||||||||||||||||||
Cost of revenues | 18 | (100,771 | ) | (97,794 | ) | (1,502 | ) | (391,544 | ) | (385,575 | ) | (5,922 | ) | |||||||||||||
Gross profit | 39,104 | 39,892 | 613 | 158,858 | 159,296 | 2,446 | ||||||||||||||||||||
Selling and marketing expenses | 18 | (11,836 | ) | (11,263 | ) | (173 | ) | (40,817 | ) | (42,349 | ) | (650 | ) | |||||||||||||
General and administrative expenses | 18 | (7,267 | ) | (9,801 | ) | (151 | ) | (32,021 | ) | (34,141 | ) | (524 | ) | |||||||||||||
Foreign exchange gains/(losses), net | 745 | 557 | 9 | 3,777 | 1,488 | 23 | ||||||||||||||||||||
Other Operating Income | 4,082 | — | — | 4,082 | — | — | ||||||||||||||||||||
Results from operating activities | 24,828 | 19,385 | 298 | 93,879 | 84,294 | 1,295 | ||||||||||||||||||||
Finance expenses | 19 | (1,170 | ) | (1,564 | ) | (24 | ) | (5,942 | ) | (5,830 | ) | (90 | ) | |||||||||||||
Finance and other income | 20 | 5,753 | 4,803 | 74 | 22,419 | 23,999 | 369 | |||||||||||||||||||
Share of profits/(loss) of equity accounted investee | 7 | — | (3 | ) | — | — | 11 | — | ||||||||||||||||||
Profit before tax | 29,411 | 22,621 | 348 | 110,356 | 102,474 | 1,574 | ||||||||||||||||||||
Income tax expense | 16 | (6,742 | ) | (4,615 | ) | (71 | ) | (25,213 | ) | (22,390 | ) | (344 | ) | |||||||||||||
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Profit for the period | 22,669 | 18,006 | 277 | 85,143 | 80,084 | 1,230 | ||||||||||||||||||||
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Attributable to: | ||||||||||||||||||||||||||
Equity holders of the Company | 22,611 | 18,028 | 277 | 84,895 | 80,081 | 1,230 | ||||||||||||||||||||
Non-controlling interest | 58 | (22 | ) | — | 248 | 3 | — | |||||||||||||||||||
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Profit for the period | 22,669 | 18,006 | 277 | 85,143 | 80,084 | 1,230 | ||||||||||||||||||||
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Earnings per equity share: | 21 | |||||||||||||||||||||||||
Attributable to equity share holders of the Company | ||||||||||||||||||||||||||
Basic | 4.68 | 4.00 | 0.06 | 17.48 | 16.86 | 0.26 | ||||||||||||||||||||
Diluted | 4.66 | 4.00 | 0.06 | 17.43 | 16.83 | 0.26 | ||||||||||||||||||||
Weighted average number of equity shares used in computing earnings per equity share | ||||||||||||||||||||||||||
Basic | 4,835,568,066 | 4,503,353,231 | 4,503,353,231 | 4,857,081,010 | 4,750,043,400 | 4,750,043,400 | ||||||||||||||||||||
Diluted | 4,849,694,210 | 4,511,906,041 | 4,511,906,041 | 4,871,347,138 | 4,758,361,975 | 4,758,361,975 |
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 | |||||
forDeloitte Haskins & Sells LLP | Azim H Premji | N Vaghul | Abidali Neemuchwala | |||
Chartered Accountants | Executive Chairman | Director | Chief Executive Officer | |||
Firm’s Registration No: 117366W/W-100018 | & Managing Director | & Executive Director | ||||
Vikas Bagaria | Jatin Pravinchandra Dalal | M Sanaulla Khan | ||||
Partner | Chief Financial Officer | Company Secretary | ||||
Membership No. 60408 | ||||||
Bangalore | ||||||
April 25, 2018 |
3
WIPRO LIMITED AND SUBSIDIARIES
INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(₹ in millions, except share and per share data, unless otherwise stated)
Three months ended March 31, | Year ended March 31, | |||||||||||||||||||||||||
Notes | 2017 | 2018 | 2018 | 2017 | 2018 | 2018 | ||||||||||||||||||||
Convenience translation into US dollar in millions (unaudited) Refer Note 2(iv) | Convenience translation into US dollar in millions (unaudited) Refer Note 2(iv) | |||||||||||||||||||||||||
Profit for the period | 22,669 | 18,006 | 277 | 85,143 | 80,084 | 1,230 | ||||||||||||||||||||
Items that will not be reclassified to profit or loss | ||||||||||||||||||||||||||
Defined benefit plan actuarial gains/(losses) | 79 | 106 | 2 | 169 | 567 | 9 | ||||||||||||||||||||
Net change in fair value of financial instruments through OCI | (168 | ) | (1,273 | ) | (20 | ) | (168 | ) | (750 | ) | (12 | ) | ||||||||||||||
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(89 | ) | (1,167 | ) | (18 | ) | 1 | (183 | ) | (3 | ) | ||||||||||||||||
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Items that may be reclassified subsequently to profit or loss | ||||||||||||||||||||||||||
Foreign currency translation differences | 15 | (3,916 | ) | 2,523 | 39 | (3,078 | ) | 3,527 | 54 | |||||||||||||||||
Net change in time value of option contracts designated as cash flow hedges | 13,16 | 9 | 10 | — | 9 | 1 | — | |||||||||||||||||||
Net change in intrinsic value of option contracts designated as cash flow hedges | 13,16 | 77 | 2 | — | 77 | (76 | ) | (1 | ) | |||||||||||||||||
Net change in fair value of forward contracts designated as cash flow hedges | 13,16 | 819 | (1,773 | ) | (27 | ) | 3,910 | (5,945 | ) | (91 | ) | |||||||||||||||
Net change in fair value of financial instruments through OCI | 7,16 | 128 | (145 | ) | (2 | ) | 1,179 | (433 | ) | (7 | ) | |||||||||||||||
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(2,883 | ) | 617 | 10 | 2,097 | (2,926 | ) | (45 | ) | ||||||||||||||||||
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Total other comprehensive income/(loss), net of taxes | (2,972 | ) | (550 | ) | (8 | ) | 2,098 | (3,109 | ) | (48 | ) | |||||||||||||||
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Total comprehensive income for the period | 19,697 | 17,456 | 269 | 87,241 | 76,975 | 1,182 | ||||||||||||||||||||
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Attributable to: | ||||||||||||||||||||||||||
Equity holders of the Company | 19,757 | 17,427 | 269 | 87,062 | 76,956 | 1,182 | ||||||||||||||||||||
Non-controlling interest | (60 | ) | 29 | — | 179 | 19 | — | |||||||||||||||||||
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19,697 | 17,456 | 269 | 87,241 | 76,975 | 1,182 | |||||||||||||||||||||
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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 | |||||
forDeloitte Haskins & Sells LLP | Azim H Premji | N Vaghul | Abidali Neemuchwala | |||
Chartered Accountants | Executive Chairman | Director | Chief Executive Officer | |||
Firm’s Registration No: 117366W/W-100018 | & Managing Director | & Executive Director | ||||
Vikas Bagaria | Jatin Pravinchandra Dalal | M Sanaulla Khan | ||||
Partner | Chief Financial Officer | Company Secretary | ||||
Membership No. 60408 | ||||||
Bangalore | ||||||
April 25, 2018 |
4
WIPRO LIMITED AND SUBSIDIARIES
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(₹ in millions, except share and per share data, unless otherwise stated)
Other components of equity | Equity attributable to the equity holders of the Company | Non-controlling interest | Total equity | |||||||||||||||||||||||||||||||||||||||||
Particulars | No. of Shares* | Share capital | Share premium | Retained earnings | Share based payment reserve | Foreign currency translation reserve | Cash flow hedging reserve | Other reserves | ||||||||||||||||||||||||||||||||||||
As at April 1, 2016 | 2,470,713,290 | 4,941 | 14,642 | 425,118 | 2,229 | 16,116 | 1,910 | 216 | 465,172 | 2,212 | 467,384 | |||||||||||||||||||||||||||||||||
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Total comprehensive income for the year | ||||||||||||||||||||||||||||||||||||||||||||
Profit for the year | — | — | — | 84,895 | — | — | — | — | 84,895 | 248 | 85,143 | |||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | (3,009 | ) | 3,996 | 1,180 | 2,167 | (69 | ) | 2,098 | ||||||||||||||||||||||||||||||||
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Total comprehensive income for the year | — | — | — | 84,895 | — | (3,009 | ) | 3,996 | 1,180 | 87,062 | 179 | 87,241 | ||||||||||||||||||||||||||||||||
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Transaction with owners of the Company, recognized directly in equity | ||||||||||||||||||||||||||||||||||||||||||||
Contributions by and distributions to owners of the Company | ||||||||||||||||||||||||||||||||||||||||||||
Cash dividend paid (including dividend tax thereon) | — | — | — | (8,734 | ) | — | — | — | — | (8,734 | ) | — | (8,734 | ) | ||||||||||||||||||||||||||||||
Issue of equity shares on exercise of options | 187,275 | ^ | 81 | — | (81 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Issue of shares by controlled trust on exercise of options | — | — | — | 384 | (384 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Buyback of equity shares | (40,000,000 | ) | (80 | ) | (14,254 | ) | (10,746 | ) | — | — | — | 80 | (25,000 | ) | — | (25,000 | ) | |||||||||||||||||||||||||||
Compensation cost related to employee share based payment | — | — | — | 13 | 1,791 | — | — | — | 1,804 | — | 1,804 | |||||||||||||||||||||||||||||||||
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Total transactions with owners of the Company | (39,812,725 | ) | (80 | ) | (14,173 | ) | (19,083 | ) | 1,326 | — | — | 80 | (31,930 | ) | — | (31,930 | ) | |||||||||||||||||||||||||||
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As at March 31, 2017 | 2,430,900,565 | 4,861 | 469 | 490,930 | 3,555 | 13,107 | 5,906 | 1,476 | 520,304 | 2,391 | 522,695 | |||||||||||||||||||||||||||||||||
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5
WIPRO LIMITED AND SUBSIDIARIES
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(₹ in millions, except share and per share data, unless otherwise stated)
Other components of equity | Equity attributable to the equity holders of the Company | Non-controlling interest | Total equity | |||||||||||||||||||||||||||||||||||||||||
Particulars | No. of Shares* | Share capital | Share premium | Retained earnings | Share based payment reserve | Foreign currency translation reserve | Cash flow hedging reserve | Other reserves | ||||||||||||||||||||||||||||||||||||
As at April 1, 2017 | 2,430,900,565 | 4,861 | 469 | 490,930 | 3,555 | 13,107 | 5,906 | 1,476 | 520,304 | 2,391 | 522,695 | |||||||||||||||||||||||||||||||||
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Total comprehensive income for the year | ||||||||||||||||||||||||||||||||||||||||||||
Profit for the year | — | — | — | 80,081 | — | — | — | — | 80,081 | 3 | 80,084 | |||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | 3,511 | (6,020 | ) | (616 | ) | (3,125 | ) | 16 | (3,109 | ) | |||||||||||||||||||||||||||||
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Total comprehensive income for the year | — | — | — | 80,081 | — | 3,511 | (6,020 | ) | (617 | ) | 76,956 | 19 | 76,975 | |||||||||||||||||||||||||||||||
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Transaction with owners of the Company, recognized directly in equity | ||||||||||||||||||||||||||||||||||||||||||||
Contributions by and distributions to owners of the Company | ||||||||||||||||||||||||||||||||||||||||||||
Cash dividend paid (including dividend tax thereon) | — | — | — | (5,420 | ) | — | — | — | — | (5,420 | ) | — | (5,420 | ) | ||||||||||||||||||||||||||||||
Issue of equity shares on exercise of options | 3,559,599 | 8 | 1,987 | — | (1,971 | ) | — | — | — | 24 | — | 24 | ||||||||||||||||||||||||||||||||
Issue of shares by controlled trust on exercise of options | — | — | — | 1,182 | (1,182 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Buyback of equity shares # | (343,750,000 | ) | (687 | ) | (1,656 | ) | (108,344 | ) | — | — | — | 687 | (110,000 | ) | — | (110,000 | ) | |||||||||||||||||||||||||||
Transaction cost related to buy back | — | — | — | (312 | ) | — | — | — | — | (312 | ) | — | (312 | ) | ||||||||||||||||||||||||||||||
Bonus issue of equity shares | 2,433,074,327 | 4,866 | — | (4,866 | ) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Compensation cost related to employee share based payment | — | — | — | 14 | 1,370 | — | — | — | 1,384 | — | 1,384 | |||||||||||||||||||||||||||||||||
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Total transactions with owners of the Company | 2,092,883,926 | 4,187 | 331 | (117,746 | ) | (1,783 | ) | — | — | 687 | (114,324 | ) | — | (114,324 | ) | |||||||||||||||||||||||||||||
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As at March 31, 2018 | 4,523,784,491 | 9,048 | 800 | 453,265 | 1,772 | 16,618 | (114 | ) | 1,547 | 482,936 | 2,410 | 485,346 | ||||||||||||||||||||||||||||||||
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Convenience translation into US dollar in millions (unaudited) Refer Note 2(iv) | 139 | 12 | 6,962 | 27 | 255 | (2 | ) | 24 | 7,417 | 37 | 7,454 | |||||||||||||||||||||||||||||||||
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* | includes 13,728,607 and 23,097,216 treasury shares held as of March 31, 2017 and 2018 respectively by a controlled trust. |
* | During the year 1,101,217 and 4,351,775 shares have been transferred by the controlled trust to eligible employees on exercise of options during the year ended March 31, 2017 and 2018. |
# | refer note 27 |
^ | value is less than₹ 1 |
The accompanying notes form an integral part of these interim condensed consolidated financial statements
As per our report of even date attached | For and on behalf of the Board of Directors | |||||
for Deloitte Haskins & Sells LLP | Azim H Premji | N Vaghul | Abidali Neemuchwala | |||
Chartered Accountants | Executive Chairman | Director | Chief Executive Officer | |||
Firm’s Registration No: 117366W/W- 100018 | & Managing Director | & Executive Director | ||||
Vikas Bagaria | Jatin Pravinchandra Dalal | M Sanaulla Khan | ||||
Partner | Chief Financial Officer | Company Secretary | ||||
Membership No. 60408 | ||||||
Bangalore | ||||||
April 25, 2018 |
6
WIPRO LIMITED AND SUBSIDIARIES
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(₹ in millions, except share and per share data, unless otherwise stated)
Year ended March 31, | ||||||||||||
2017 | 2018 | 2018 | ||||||||||
Convenience Translation into US$ in millions (Unaudited) Refer note 2 (iv) | ||||||||||||
Cash flows from operating activities: | ||||||||||||
Profit for the period | 85,143 | 80,084 | 1,230 | |||||||||
Adjustments to reconcile profit for the year to net cash generated from | ||||||||||||
Loss/(gain) on sale of property, plant and equipment and intangible assets, net | 117 | (334 | ) | (5 | ) | |||||||
Depreciation, amortization and impairment | 23,107 | 21,124 | 324 | |||||||||
Unrealized exchange (gain)/loss, net | 3,945 | 4,794 | 74 | |||||||||
Gain on sale of investments, net | (3,486 | ) | (5,978 | ) | (92 | ) | ||||||
Share based compensation expense | 1,742 | 1,347 | 21 | |||||||||
Share of profits/(loss) of equity accounted investee | — | 11 | * | |||||||||
Income tax expense | 25,213 | 22,390 | 344 | |||||||||
Dividend and interest income, net | (16,259 | ) | (14,569 | ) | (224 | ) | ||||||
Gain from sale of EcoEnergy division | (4,082 | ) | — | — | ||||||||
Othernon-cash items | (1,732 | ) | 4,405 | 68 | ||||||||
Changes in operating assets and liabilities; net of effects from acquisitions | ||||||||||||
Trade receivables | 3,346 | (9,735 | ) | (150 | ) | |||||||
Unbilled revenues | 3,813 | 2,192 | 34 | |||||||||
Inventories | 1,475 | 545 | 8 | |||||||||
Other assets | 4,054 | (170 | ) | (3 | ) | |||||||
Trade payables, accrued expenses, other liabilities and provisions | (5,202 | ) | 4,499 | 69 | ||||||||
Unearned revenues | (2,945 | ) | 1,733 | 27 | ||||||||
|
|
|
|
|
| |||||||
Cash generated from operating activities before taxes | 118,249 | 112,338 | 1,725 | |||||||||
|
|
|
|
|
| |||||||
Income taxes paid, net | (25,476 | ) | (28,105 | ) | (432 | ) | ||||||
|
|
|
|
|
| |||||||
Net cash generated from operating activities | 92,773 | 84,233 | 1,293 | |||||||||
|
|
|
|
|
| |||||||
Cash flows from investing activities: | ||||||||||||
Purchase of property, plant and equipment | (20,853 | ) | (21,870 | ) | (336 | ) | ||||||
Proceeds from sale of property, plant and equipment | 1,207 | 1,171 | 18 | |||||||||
Proceeds from sale of EcoEnergy division, net of related expenses | 4,372 | — | — | |||||||||
Purchase of investments | (813,439 | ) | (782,475 | ) | (12,018 | ) | ||||||
Proceeds from sale of investments | 729,755 | 830,448 | 12,755 | |||||||||
Impact of investment hedging activities, net | (226 | ) | — | — | ||||||||
Payment for business acquisitions including deposit in escrow, net of cash acquired | (33,608 | ) | (6,652 | ) | (102 | ) | ||||||
Interest received | 17,069 | 14,347 | 220 | |||||||||
Dividend received | 311 | 609 | 9 | |||||||||
|
|
|
|
|
| |||||||
Cash used in investing activities before taxes | (115,412 | ) | 35,578 | 546 | ||||||||
|
|
|
|
|
| |||||||
Income taxes paid on sale of EcoEnergy division | (871 | ) | — | — | ||||||||
|
|
|
|
|
| |||||||
Net cash used in investing activities | (116,283 | ) | 35,578 | 546 | ||||||||
|
|
|
|
|
| |||||||
Cash flows from financing activities: | ||||||||||||
Proceeds from issuance of equity shares | * | 24 | * | |||||||||
Repayment of loans and borrowings | (112,803 | ) | (155,254 | ) | (2,384 | ) | ||||||
Proceeds from loans and borrowings | 125,922 | 144,271 | 2,216 | |||||||||
Payment for deferred/contingent consideration in respect of business combinations | (138 | ) | (164 | ) | (3 | ) | ||||||
Payment for buy back of shares including transaction cost | (25,000 | ) | (110,312 | ) | (1,694 | ) | ||||||
Interest paid on loans and borrowings | (1,999 | ) | (3,123 | ) | (48 | ) | ||||||
Payment of cash dividend (including dividend tax thereon) | (8,734 | ) | (5,420 | ) | (83 | ) | ||||||
|
|
|
|
|
| |||||||
Net cash generated from financing activities | (22,752 | ) | (129,978 | ) | (1,996 | ) | ||||||
|
|
|
|
|
| |||||||
Net (decrease)/increase in cash and cash equivalents during the period | (46,262 | ) | (10,167 | ) | (156 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents | (1,412 | ) | 375 | 6 | ||||||||
Cash and cash equivalents at the beginning of the period | 98,392 | 50,718 | 779 | |||||||||
|
|
|
|
|
| |||||||
Cash and cash equivalents at the end of the period (Note 9) | 50,718 | 40,926 | 629 | |||||||||
|
|
|
|
|
|
* | Value is less than₹ 1 million |
Refer note 11 for supplementary information on cash flow statement
The accompanying notes form an integral part of these interim condensed consolidated financial statements |
As per our report of even date attached | For and on behalf of the Board of Directors | |||||
for Deloitte Haskins & Sells LLP | Azim H Preniji | N Yaghul | Abidali Neemuchwala | |||
Chartered Accountants | Executive Chairman | Director | Chief Executive Officer | |||
Firm’s Registration No: 117366W/W- 100018 | & Managing Director | & Executive Director | ||||
Vikas Bagaria | Jatin Pravinchandra Dalai | M Sanaulla Khan | ||||
Partner | Chief Financial Officer | Company Secretary | ||||
Membership No. 60408 | ||||||
Bangalore | ||||||
April 25, 2018 |
7
WIPRO LIMITED AND SUBSIDIARIES
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(₹ in millions, except share and per share data, unless otherwise stated)
1. | The Company overview |
Wipro Limited (“Wipro” or the “Parent Company”), together with its subsidiaries and controlled trust (collectively, “the Company” or the “Group”) is a global information technology (IT), consulting and business process services (BPS) company.
Wipro is a public limited company incorporated and domiciled in India. The address of its registered office is Wipro Limited, Doddakannelli, Sarjapur Road, Bangalore – 560 035, Karnataka, India. Wipro has its primary listing with Bombay Stock Exchange and National Stock Exchange in India. The Company’s American Depository Shares representing equity shares are also listed on the New York Stock Exchange. These interim condensed consolidated financial statements were authorized for issue by the Company’s Board of Directors on April 25, 2018.
Amounts for the three months and year ended March 31, 2017 were audited by B S R & Co. LLP.
2. | Basis of preparation |
(i) | Statement of compliance |
These interim condensed consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IAS) 34,“Interim Financial Reporting” and its interpretations (“IFRS”), as issued by the International Accounting Standards Board (“IASB”). Selected explanatory notes are included to explain events and transactions that are significant to understand the changes in financial position and performance of the Company since the last annual consolidated financial statements as at and for the year ended March 31, 2017. These interim condensed consolidated financial statements do not include all the information required for full annual financial statements prepared in accordance with IFRS.
(ii) | Basis of preparation |
The interim condensed consolidated financial statements correspond to the classification provisions contained inIAS 1(revised), “Presentation of Financial Statements”. For clarity, various items are aggregated in the statements of income and statements of financial position. These items are disaggregated separately in the notes, where applicable. The accounting policies have been consistently applied to all periods presented in these interim condensed consolidated financial statements.
All amounts included in the interim condensed consolidated financial statements are reported in Indian rupees (₹) in million except share and per share data, unless otherwise stated. Due to rounding off, the numbers presented throughout these financial statements may not add up precisely to the totals and percentages may not precisely reflect the absolute figures.
(iii) | 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 that have been measured at fair value as required by relevant IFRS:
a. | Derivative financial instruments; |
b. | Financial instruments classified as fair value through other comprehensive income or fair value through profit or loss; |
c. | The defined benefit asset/ (liability) is recognised at the present value of the defined benefit obligation less fair value of plan assets; and |
d. | Contingent consideration. |
(iv) | Convenience translation (unaudited) |
The accompanying interim condensed consolidated financial statements have been prepared and reported in Indian rupees, the functional currency of the Company. Solely for the convenience of the readers, the interim condensed consolidated financial statements as of and for the three months and year ended March 31, 2018, have been translated into United States dollars at the certified foreign exchange rate of $ 1 =₹ 65.11, as published by the Federal Reserve Board of Governors on March 31, 2018. No representation is made that the Indian rupee amounts have been, could have been or could be converted into United States dollars at such a rate or any other rate.
8
(v) | Use of estimates and judgment |
The preparation of the interim condensed consolidated financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from those estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. In particular, information about significant areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the interim condensed consolidated financial statements is included in the following notes:
a) | Revenue recognition: The Company uses the percentage of completion method using the input (cost expended) method to measure progress towards completion in respect of fixed price contracts. Percentage of completion method accounting relies on estimates of total expected contract revenue and costs. This method is followed when reasonably dependable estimates of the revenues and costs applicable to various elements of the contract can be made. Key factors that are reviewed in estimating the future costs to complete include estimates of future labor costs and productivity efficiencies. Because the financial reporting of these contracts depends on estimates that are assessed continually during the term of these contracts, recognized revenue and profit are subject to revisions as the contract progresses to completion. When estimates indicate that a loss will be incurred, the loss is provided for in the period in which the loss becomes probable. Volume discounts are recorded as a reduction of revenue. When the amount of discount varies with the levels of revenue, volume discount is recorded based on estimate of future revenue from the customer. |
b) | Impairment testing: Goodwill and intangible assets with infinite useful life recognised on business combination are tested for impairment at least annually and when events occur or changes in circumstances indicate that the recoverable amount of the asset or the cash generating unit to which these pertain is less than the carrying value. The recoverable amount of the asset or the cash generating units is higher ofvalue-in-use and fair value less cost of disposal. The calculation of value in use of a cash generating unit involves use of significant estimates and assumptions which includes turnover and earnings multiples, growth rates and net margins used to calculate projected future cash flows, risk-adjusted discount rate, future economic and market conditions. |
c) | Income taxes:The major tax jurisdictions for the Company are India and the United States of America. Significant judgments are involved in determining the provision for income taxes including judgment on whether tax positions are probable of being sustained in tax assessments. A tax assessment can involve complex issues, which can only be resolved over extended time periods. |
d) | Deferred taxes: Deferred tax is recorded on temporary differences between the tax bases of assets and liabilities and their carrying amounts, at the rates that have been enacted or substantively enacted at the reporting date. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable profits during the periods in which those temporary differences and tax loss carry-forwards become deductible. The Company considers the expected reversal of deferred tax liabilities and projected future taxable income in making this assessment. The amount of the deferred tax assets considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carry-forward period are reduced. |
e) | Business 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 (including useful life estimates) and liabilities acquired and contingent consideration assumed involves management judgment. These measurements are based on information available at the acquisition date and are based on expectations and assumptions that have been deemed reasonable by management. Changes in these judgments, estimates, and assumptions can materially affect the results of operations. |
f) | Defined benefit plans and compensated absences: The cost of the defined benefit plans, compensated absences and the present value of the defined benefit obligations are based on actuarial valuation using the projected unit credit method. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date. |
g) | Expected credit losses on financial assets: On application of IFRS 9, the impairment provisions of financial assets are based on assumptions about risk of default and expected timing of collection. The Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on the Company’s past history, customer’s credit-worthiness, existing market conditions as well as forward looking estimates at the end of each reporting period. |
9
h) | Measurement of fair value ofnon-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) | Other estimates: The share based compensation expense is determined based on the Company’s estimate of equity instruments that will eventually vest. |
3. | Significant accounting policies |
Equity accounted investees
Equity accounted investees are entities in respect of which, the Company has significant influence, but not control, over the financial and operating policies. Generally, a Company has a significant influence if it holds between 20 and 50 percent of the voting power of another entity. Investments in such entities are accounted for using the equity method (equity accounted investees) and are initially recognized at cost.
Non current assets and disposal groups held for sale
Assets of disposal groups that is available for immediate sale and where the sale is highly probable of being completed within one year from the date of classification are considered and classified as assets held for sale. Non current assets and disposal groups held for sale are measured at the lower of carrying amount and fair value less costs to sell.
Please refer to the Company’s Annual Report for the year ended March 31, 2017 for a discussion of the Company’s other critical accounting policies.
New Accounting standards adopted by the Company:
The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Company’s annual consolidated financial statements for the year ended March 31, 2017, except for the adoption of amendments and interpretations effective as of April 1, 2017. Although these amendments apply for the first time in the current financial year, they do not have a material impact on the interim condensed consolidated financial statements.
IAS | 7- Amendment to Statement of Cash Flows |
The amendments require entities to provide disclosures about changes in their liabilities arising from financing activities, including both changes arising from cash flows andnon-cash changes (such as foreign exchange gains or losses). On initial application of the amendment, entities are not required to provide comparative information for preceding periods. The effect on adoption of IAS 7 on the consolidated financial statements is insignificant.
10
New accounting standards not yet adopted:
A number of new standards, amendments to standards and interpretations are not yet effective for annual periods beginning after April 1, 2017, and have not been applied in preparing these interim condensed consolidated financial statements. New standards, amendments to standards and interpretations that could have a potential impact on the consolidated financial statements of the Company are:
IFRS 15 – Revenue from Contracts with Customers
IFRS 15 supersedes all existing revenue requirements in IFRS (IAS 11 Construction Contracts, IAS 18 Revenue and related interpretations). According to the new standard, revenue is recognized to depict the transfer of promised goods or services to a customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. IFRS 15 establishes a five step model that will apply to revenue earned from a contract with a customer (with limited exceptions), regardless of the type of revenue transaction or the industry. Extensive disclosures will be required, including disaggregation of total revenue; information about performance obligation; changes in contract asset and liability account balances between periods and key judgments and estimates.
The standard allows for two methods of transition: the full retrospective approach, under which the standard will be applied retrospectively to each reported period presented, or the cumulative catch up approach, where the cumulative effect of applying the standard retrospectively is recognized at the date of initial application. The standard is effective for annual periods beginning on or after January 1, 2018. Early adoption is permitted. The Company will adopt this standard using the cumulative catch up transition method effective April 1, 2018 and accordingly, the comparative for year ended March 31, 2017 and 2018, will not be retrospectively adjusted. The adoption of the new standard is expected to result in a reduction of approximately₹ 2,239 million in opening retained earnings, primarily relating to certain contract costs because these will not meet the criteria for recognition as contract fulfillment asset.
IFRIC 22 - Foreign currency transactions and advance consideration
On December 8, 2016, the IFRS interpretations committee of the International Accounting Standards Board issued IFRIC 22, Foreign currency transactions and advance consideration which clarifies that the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income is the date on which an entity initially recognizes thenon-monetary asset ornon-monetary liability arising from the payment or receipt of advance consideration in a foreign currency. The effective date for adoption of IFRIC 22 is annual reporting periods beginning on or after January 1, 2018, though early adoption is permitted. The effect on adoption of IFRIC 22 on the consolidated financial statements is insignificant.
IFRS 16 - Leases
On January 13, 2016, the International Accounting Standards Board issued IFRS 16, Leases. IFRS 16 will replace the existing leases Standard, IAS 17 Leases, and related interpretations. The standard sets out the principles for the recognition, measurement, presentation and disclosure of leases. IFRS 16 introduces a single lessee accounting model and requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. The Standard also contains enhanced disclosure requirements for lessees. The effective date for adoption of IFRS 16 is annual periods beginning on or after January 1, 2019, though early adoption is permitted for companies applying IFRS 15 Revenue from Contracts with Customers. The Company does not plan to early adopt IFRS 16 and is currently assessing the impact of adopting IFRS 16 on the Company’s consolidated financial statements.
IFRIC 23 – Uncertainty over Income Tax treatments
On June 7, 2017, the International Accounting Standards Board issued IFRIC 23 which clarifies the accounting for uncertainties in income taxes. The interpretation is to be applied to the determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates, when there is uncertainty over income tax treatments under IAS 12. It outlines the following: (1) the entity has to use judgement, to determine whether each tax treatment should be considered separately or whether some can be considered together. The decision should be based on the approach which provides better predictions of the resolution of the uncertainty (2) entity has to consider the probability of the relevant taxation authority accepting the tax treatment and the determination of taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates would depend upon the probability. The effective date for adoption of IFRIC 23 for annual periods beginning on or after January 1, 2019, though early adoption is permitted. The Company does not plan to early adopt IFRIC 23 and is currently assessing the impact of adopting IFRIC 23 on the Company’s consolidated financial statements.
11
4. Property, plant and equipment
Land | Buildings | Plant and machinery * | Furniture fixtures and equipment | Vehicles | Total | |||||||||||||||||||
Gross carrying value: | ||||||||||||||||||||||||
As at April 1, 2016 | ₹ | 3,695 | ₹ | 26,089 | ₹ | 99,580 | ₹ | 14,115 | ₹ | 589 | ₹ | 144,068 | ||||||||||||
Translation adjustment | (15 | ) | (69 | ) | (1,377 | ) | (133 | ) | 3 | (1,591 | ) | |||||||||||||
Additions/ adjustments | — | 1,133 | 16,572 | 2,242 | 23 | 19,970 | ||||||||||||||||||
Acquisition through business combinations | 134 | 446 | 835 | 77 | — | 1,492 | ||||||||||||||||||
Disposals/ adjustments | — | (18 | ) | (6,643 | ) | (553 | ) | (183 | ) | (7,397 | ) | |||||||||||||
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|
|
|
|
|
|
|
|
| |||||||||||||
As at March 31, 2017 | 3,814 | 27,581 | 108,967 | 15,748 | 432 | 156,542 | ||||||||||||||||||
Accumulated depreciation/ impairment: | ||||||||||||||||||||||||
As at April 1, 2016 | — | ₹ | 5,344 | ₹ | 68,161 | ₹ | 11,318 | ₹ | 504 | ₹ | 85,327 | |||||||||||||
Translation adjustment | — | (39 | ) | (816 | ) | (75 | ) | 2 | (928 | ) | ||||||||||||||
Depreciation | — | 1,059 | 14,910 | 1,117 | 28 | 17,114 | ||||||||||||||||||
Disposals/ adjustments | — | (3 | ) | (5,250 | ) | (392 | ) | (169 | ) | (5,814 | ) | |||||||||||||
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|
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|
|
|
| |||||||||||||
As at March 31, 2017 | — | 6,361 | 77,005 | 11,968 | 365 | 95,699 | ||||||||||||||||||
Capitalwork-in-progress | ₹ | 8,951 | ||||||||||||||||||||||
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| |||||||||||||||||||||||
Net carrying value including Capitalwork-in-progress as at March 31, 2017 | ₹ | 69,794 | ||||||||||||||||||||||
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| |||||||||||||||||||||||
Gross carrying value: | ||||||||||||||||||||||||
As at April 1, 2017 | ₹ | 3,814 | ₹ | 27,581 | ₹ | 108,967 | ₹ | 15,748 | ₹ | 432 | ₹ | 156,542 | ||||||||||||
Translation adjustment | 28 | 265 | 904 | 188 | 2 | 1,387 | ||||||||||||||||||
Additions/ adjustments | 2 | 1,197 | 11,767 | 1,776 | 1,003 | 15,745 | ||||||||||||||||||
Acquisition through business combinations | — | 13 | 4 | 11 | 1 | 29 | ||||||||||||||||||
Disposals/ adjustments | — | (190 | ) | (7,302 | ) | (872 | ) | (294 | ) | (8,658 | ) | |||||||||||||
Assets reclassified as held for sale | (207 | ) | (3,721 | ) | (27,118 | ) | (1,079 | ) | (5 | ) | (32,130 | ) | ||||||||||||
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|
|
|
|
|
|
| |||||||||||||
As at March 31, 2018 | 3,637 | 25,145 | 87,222 | 15,772 | 1,139 | 132,915 | ||||||||||||||||||
Accumulated depreciation/ impairment: | ||||||||||||||||||||||||
As at April 1, 2017 | — | ₹ | 6,361 | ₹ | 77,005 | ₹ | 11,968 | ₹ | 365 | ₹ | 95,699 | |||||||||||||
Translation adjustment | — | 49 | 509 | 104 | — | 662 | ||||||||||||||||||
Depreciation | — | 1,023 | 14,078 | 1,381 | 387 | 16,869 | ||||||||||||||||||
Disposals/ adjustments | — | (70 | ) | (6,640 | ) | (758 | ) | (242 | ) | (7,710 | ) | |||||||||||||
Assets reclassified as held for sale | (1,539 | ) | (19,627 | ) | (712 | ) | (4 | ) | (21,882 | ) | ||||||||||||||
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| |||||||||||||
As at March 31, 2018 | — | 5,824 | 65,325 | 11,983 | 506 | 83,638 | ||||||||||||||||||
Capitalwork-in-progress | ₹ | 15,680 | ||||||||||||||||||||||
Capitalwork-in-progress reclassified as held for sale | (514 | ) | ||||||||||||||||||||||
|
| |||||||||||||||||||||||
Net carrying value including Capitalwork-in-progress as at March 31, 2018 | ₹ | 64,443 | ||||||||||||||||||||||
|
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* | Including computer equipment and software. |
5. Goodwill and intangible assets
The movement in goodwill balance is given below:
Year ended March 31, | ||||||||
2017 | 2018 | |||||||
Balance at the beginning of the year | ₹ | 101,991 | ₹ | 125,796 | ||||
Translation adjustment | (4,319 | ) | 2,970 | |||||
Acquisition through business combination | 28,124 | 1,172 | ||||||
Assets reclassified as held for sale | — | (12,354 | ) | |||||
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| |||||
Balance at the end of the year | ₹ | 125,796 | ₹ | 117,584 | ||||
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12
The movement in intangible assets is given below:
Intangible assets | ||||||||||||
Customer related | Marketing related | Total | ||||||||||
Gross carrying value: | ||||||||||||
As at April 1, 2016 | ₹ | 18,360 | ₹ | 2,587 | ₹ | 20,947 | ||||||
Translation adjustment | (546 | ) | (314 | ) | (860 | ) | ||||||
Acquisition through business combinations | 2,714 | 4,006 | 6,720 | |||||||||
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|
|
| |||||||
As at March 31, 2017 | 20,528 | 6,279 | 26,807 | |||||||||
Accumulated amortization/ impairment: | ||||||||||||
As at April 1, 2016 | ₹ | 4,164 | ₹ | 942 | ₹ | 5,106 | ||||||
Translation adjustment | (7 | ) | (68 | ) | (75 | ) | ||||||
Amortization and impairment * | 5,107 | 747 | 5,854 | |||||||||
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|
|
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| |||||||
As at March 31, 2017 | 9,264 | 1,621 | 10,885 | |||||||||
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|
|
| |||||||
Net carrying value as at March 31, 2017 | 11,264 | 4,658 | 15,922 | |||||||||
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| |||||||
Gross carrying value: | ||||||||||||
As at April 1, 2017 | ₹ | 20,528 | ₹ | 6,279 | ₹ | 26,807 | ||||||
Translation adjustment | 493 | 103 | 596 | |||||||||
Acquisition through business combinations | 5,565 | 169 | 5,734 | |||||||||
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|
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| |||||||
As at March 31, 2018 | 26,586 | 6,551 | 33,137 | |||||||||
Accumulated amortization / impairment: | ||||||||||||
As at April 1, 2017 | ₹ | 9,264 | ₹ | 1,621 | ₹ | 10,885 | ||||||
Translation adjustment | 14 | 11 | 25 | |||||||||
Amortization and impairment * | 2,985 | 1,129 | 4,114 | |||||||||
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|
|
|
|
| |||||||
As at March 31, 2018 | 12,263 | 2,761 | 15,024 | |||||||||
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|
| |||||||
Net carrying value as at March 31, 2018 | 14,323 | 3,790 | 18,113 | |||||||||
|
|
|
|
|
|
* | Includes impairment charge on certain intangible assets recognized on acquisitions, amount to₹ 3,056 and₹ 643 for the year ended March 31, 2017 and 2018 respectively. |
Amortization expense and impairment charge on intangible assets is included in selling and marketing expenses in the interim condensed consolidated financial statements.
6. Business combination
Appirio Inc.
On November 23, 2016, the Company obtained full control of Appirio Inc (“Appirio”). Appirio is a global services company that helps customers create next-generation employee and customer experiences using latest cloud technology services. The acquisition strengthens Wipro’s cloud application service offerings. The acquisition was consummated for a consideration of₹ 32,402 (USD 475.6 million).
The following table presents the allocation of purchase price:
Description | Pre- acquisitions carrying amount | Fair value adjustment | Purchase price allocation | |||||||||
Net assets | 526 | (29 | ) | ₹ | 497 | |||||||
Technology platform | 436 | (89 | ) | 347 | ||||||||
Customer related intangibles | — | 2,323 | 2,323 | |||||||||
Brand | 180 | 2,968 | 3,148 | |||||||||
Alliance relationship | — | 858 | 858 | |||||||||
Deferred tax liabilities on intangible assets | — | (2,791 | ) | (2,791 | ) | |||||||
|
|
|
|
|
| |||||||
Total | 1,142 | 3,240 | ₹ | 4,382 | ||||||||
|
|
|
|
|
| |||||||
Goodwill | 28,020 | |||||||||||
|
| |||||||||||
Total purchase price | ₹ | 32,402 | ||||||||||
|
|
Net assets acquired include₹ 85 of cash and cash equivalents and trade receivables valued at₹ 2,363.
13
The goodwill of₹ 28,020 comprises value of acquired workforce and expected synergies arising from the acquisition. Goodwill is not deductible for income tax purposes.
During the three months June 30, 2017, the Company concluded the fair value adjustments of the assets acquired and liabilities assumed on acquisition. Comparatives have not been retrospectively revised as the amounts are not material.
Other Business Combinations:
During the year ended March 31, 2018, we completed four business combinations (which individually and in aggregate are not material) for a total consideration of₹ 6,924 million. These transactions include (a) an acquisition of IT service provider which is focused on Latin American markets, (b) an acquisition of a design and business strategy consultancy firm based in US, and (c) acquisition of intangible assets, assembled workforce and a multi-year service agreement which qualify as business combinations.
The following table presents the allocation of purchase price:
Description | Purchase price allocation | |||
Net assets | ₹ | 5 | ||
Customer related intangibles | 5,565 | |||
Other intangible assets | 169 | |||
|
| |||
Total | ₹ | 5,739 | ||
|
| |||
Goodwill | 1,185 | |||
|
| |||
Total purchase price | ₹ | 6,924 | ||
|
|
During the year ended March 31, 2018, the Company concluded the fair value adjustments of the assets acquired and liabilities assumed on acquisition. Thepro-forma information has not been provided as the amounts are not material.
7. Investments
Investments consist of the followings:
As at | ||||||||
March 31, 2017 | March 31, 2018 | |||||||
Financial instruments at FVTPL | ||||||||
Investments in liquid and short-term mutual funds * | ₹ | 104,675 | ₹ | 46,438 | ||||
Others | 569 | — | ||||||
Financial instruments at FVTOCI | ||||||||
Equity instruments | 5,303 | 5,685 | ||||||
Commercial paper, Certificate of deposits and bonds | 145,614 | 176,234 | ||||||
Financial instruments at amortized cost | ||||||||
Inter corporate and term deposits ** | 42,972 | 28,405 | ||||||
|
|
|
| |||||
₹ | 299,133 | ₹ | 256,762 | |||||
|
|
|
| |||||
Current | 292,030 | 249,094 | ||||||
Non-current | 7,103 | 7,668 |
* | Investments in liquid and short-term mutual funds include investments amounting to₹ Nil (March 31, 2017:₹ 117) pledged as margin money deposits for entering into currency future contracts. |
** | These deposits earn a fixed rate of interest. |
** | Term deposits include deposits in lien with banks amounting to₹ 453 (March 31, 2017:₹ 308). |
Investment in equity accounted investee
During the year, the Company has increased its investment in Drivestream Inc. from 19% to 43.7%. Drivestream Inc. is a private entity that is not listed on any public exchange. The carrying value of the investment as at March 31, 2018 was₹ 630.
During the year, the Company has invested₹ 576 for 33.3% stake in Denim Group LLC, a private entity that is not listed on any public exchange. The carrying value of the investment as at March 31, 2018 was₹ 576.
14
8. Inventories
Inventories consist of the following:
As at | ||||||||
March 31, 2017 | March 31, 2018 | |||||||
Stores and spare parts | ₹ | 808 | ₹ | 769 | ||||
Raw materials and components | 1 | — | ||||||
Traded goods | 3,106 | 2,601 | ||||||
|
|
|
| |||||
₹ | 3,915 | ₹ | 3,370 | |||||
|
|
|
|
9. Cash and cash equivalents
Cash and cash equivalents as of March 31, 2017 and 2018 consists of cash and balances on deposit with banks.
Cash and cash equivalents consists of the following:
As at | ||||||||
March 31, 2017 | March 31, 2018 | |||||||
Cash and bank balances | ₹ | 27,808 | ₹ | 23,300 | ||||
Demand deposits with banks * | 24,902 | 21,625 | ||||||
|
|
|
| |||||
₹ | 52,710 | ₹ | 44,925 | |||||
|
|
|
|
* | These deposits can be withdrawn by the Company at any time without prior notice and without any penalty on the principal. |
Cash and cash equivalents consists of the following for the purpose of the cash flow statement:
As at | ||||||||
March 31, 2017 | March 31, 2018 | |||||||
Cash and cash equivalents | ₹ | 52,710 | ₹ | 44,925 | ||||
Bank overdrafts | (1,992 | ) | (3,999 | ) | ||||
|
|
|
| |||||
₹ | 50,718 | ₹ | 40,926 | |||||
|
|
|
|
10. Other assets
As at | ||||||||
March 31, 2017 | March 31, 2018 | |||||||
Current | ||||||||
Prepaid expenses and deposits | ₹ | 13,486 | ₹ | 15,704 | ||||
Due from officers and employees | 2,349 | 1,872 | ||||||
Finance lease receivables | 1,854 | 2,271 | ||||||
Advance to suppliers | 1,448 | 1,819 | ||||||
Deferred contract costs | 4,270 | 3,211 | ||||||
Balance with excise, customs and other authorities | 2,153 | 3,886 | ||||||
Others | 5,191 | 3,214 | ||||||
Less: Assets reclassified as held for sale | — | (1,381 | ) | |||||
|
|
|
| |||||
₹ | 30,751 | ₹ | 30,596 | |||||
|
|
|
| |||||
Non-current | ||||||||
Prepaid expenses including rentals for leasehold land and deposits | ₹ | 10,516 | ₹ | 8,799 | ||||
Finance lease receivables | 2,674 | 2,739 | ||||||
Others | 3,603 | 4,718 | ||||||
Less: Assets reclassified as held for sale | — | (530 | ) | |||||
|
|
|
| |||||
₹ | 16,793 | ₹ | 15,726 | |||||
|
|
|
| |||||
Total | ₹ | 47,544 | ₹ | 46,322 | ||||
|
|
|
|
15
11. Loans and borrowings
A summary of loans and borrowings is as follows:
As at | ||||||||
March 31, 2017 | March 31, 2018 | |||||||
Borrowings from banks | ₹ | 120,911 | ₹ | 119,689 | ||||
Bank overdrafts | 1,992 | 3,999 | ||||||
External commercial borrowings | 9,728 | 9,777 | ||||||
Obligations under finance leases | 8,280 | 5,442 | ||||||
Loans from institutions other than bank | 1,501 | 821 | ||||||
Less: Liabilities directly associated with assets held for sale | — | (1,469 | ) | |||||
|
|
|
| |||||
₹ | 142,412 | ₹ | 138,259 | |||||
|
|
|
| |||||
Current | 122,801 | 92,991 | ||||||
Non-current | 19,611 | 45,268 |
Changes in financing liabilities arising from cash andnon-cash changes:
Particulars | 1-Apr-17 | Cash Flows | Non-Cash Changes | Less: Liabilities directly associated with assets held for sale | 31-Mar-18 | |||||||||||||||||||
Assets taken oil lease | Foreign Exchange Movements | |||||||||||||||||||||||
Borrowings from banks | 120,911 | (6,661 | ) | — | 5,439 | — | 119,689 | |||||||||||||||||
Bank overdrafts | 1,992 | 2,007 | — | — | — | 3,999 | ||||||||||||||||||
External commercial borrowings | 9,728 | — | — | 49 | — | 9,777 | ||||||||||||||||||
Obligations under finance leases | 8,280 | (3,627 | ) | 766 | 23 | (1,469 | ) | 3,973 | ||||||||||||||||
Loans from other than bank | 1,501 | (695 | ) | — | 15 | — | 821 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total | 142,412 | (8,976 | ) | 766 | 5,526 | (1,469 | ) | 138,259 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
12. Other liabilities and provisions
As at | ||||||||
March 31, 2017 | March 31, 2018 | |||||||
Other liabilities: | ||||||||
Current: | ||||||||
Statutory and other liabilities | ₹ | 3,353 | ₹ | 4,263 | ||||
Employee benefits obligations | 5,912 | 8,537 | ||||||
Advance from customers | 2,394 | 1,901 | ||||||
Others | 1,368 | 2,189 | ||||||
Less: Liabilities directly associated with assets held for sale | — | (277 | ) | |||||
|
|
|
| |||||
₹ | 13,027 | ₹ | 16,613 | |||||
|
|
|
| |||||
Non-current: | ||||||||
Employee benefits obligations | ₹ | 4,235 | ₹ | 1,791 | ||||
Others | 1,265 | 2,447 | ||||||
Less: Liabilities directly associated with assets held for sale | — | (8 | ) | |||||
|
|
|
| |||||
₹ | 5,500 | ₹ | 4,230 | |||||
|
|
|
| |||||
Total | ₹ | 18,527 | ₹ | 20,843 | ||||
|
|
|
| |||||
As at | ||||||||
March 31, 2017 | March 31, 2018 | |||||||
Provisions: | ||||||||
Current: | ||||||||
Provision for warranty | ₹ | 436 | ₹ | 290 | ||||
Others | 834 | 506 | ||||||
|
|
|
| |||||
₹ | 1,270 | ₹ | 796 | |||||
|
|
|
| |||||
Non-current: | ||||||||
Provision for warranty | ₹ | 4 | ₹ | 3 | ||||
|
|
|
| |||||
₹ | 4 | ₹ | 3 | |||||
|
|
|
| |||||
₹ | 1,274 | ₹ | 799 | |||||
|
|
|
|
16
Provision for warranty represents cost associated with providing sales support services which are accrued at the time of recognition of revenues and are expected to be utilized over a period of 1 to 2 years. Other provisions primarily include provisions for indirect tax related contingencies and litigations. The timing of cash outflows in respect of such provision cannot be reasonably determined.
13. Financial Instruments
Derivative assets and liabilities:
The Company is exposed to foreign currency fluctuations on foreign currency assets / liabilities, forecasted cash flows denominated in foreign currency and net investment in foreign operations. The Company follows established risk management policies, including the use of derivatives to hedge foreign currency assets / liabilities, foreign currency forecasted cash flows and net investment in foreign operations. The counter parties in these derivative instruments are primarily banks and the Company considers the risks ofnon-performance by the counterparty asnon-material.
The following table presents the aggregate contracted principal amounts of the Company’s derivative contracts outstanding:
(in million) | ||||||||
As at March 31, | ||||||||
2017 | 2018 | |||||||
Designated derivatives instruments | ||||||||
Sell : Forward contracts | USD | 886 | USD | 904 | ||||
€ | 228 | € | 134 | |||||
£ | 280 | £ | 147 | |||||
AUD | 129 | AUD | 77 | |||||
Range forward options contracts | USD | 130 | USD | 182 | ||||
£ | — | £ | 13 | |||||
€ | — | € | 10 | |||||
Interest rate swaps | USD | — | USD | 75 | ||||
Non-designated derivatives instruments | ||||||||
Sell : Forward contracts | USD | 889 | USD | 939 | ||||
€ | 83 | € | 58 | |||||
£ | 82 | £ | 95 | |||||
AUD | 51 | AUD | 77 | |||||
SGD | 3 | SGD | 6 | |||||
ZAR | 262 | ZAR | 132 | |||||
CAD | 41 | CAD | 14 | |||||
SAR | 49 | SAR | 62 | |||||
AED | 69 | AED | 8 | |||||
PLN | 31 | PLN | 36 | |||||
CHF | — | CHF | 6 | |||||
QAR | — | QAR | 11 | |||||
TRY | — | TRY | 10 | |||||
MXN | — | MXN | 61 | |||||
NOK | — | NOK | 34 | |||||
OMR | — | OMR | 3 | |||||
Range forward options contracts | USD | — | USD | 50 | ||||
£ | — | £ | 20 | |||||
Buy : Forward contracts | USD | 750 | USD | 575 | ||||
JPY | — | JPY | 399 | |||||
DKK | — | DKK | 9 |
17
The following table summarizes activity in the cash flow hedging reserve within equity related to all derivative instruments classified as cash flow hedges:
As at March 31, | ||||||||
2017 | 2018 | |||||||
Balance as at the beginning of the year | ₹ | 2,367 | ₹ | 7,325 | ||||
Deferred cancellation gain/ (loss), net | 74 | (6 | ) | |||||
Changes in fair value of effective portion of derivatives | 12,391 | (12 | ) | |||||
Net (gain)/loss reclassified to statement of income on occurrence of hedged transactions | (7,507 | ) | (7,450 | ) | ||||
|
|
|
| |||||
Gain/(loss) on cash flow hedging derivatives, net | ₹ | 4,958 | ₹ | (7,468) | ||||
|
|
|
| |||||
Balance as at the end of the year | ₹ | 7,325 | ₹ | (143) | ||||
Deferred tax thereon | (1,419 | ) | 29 | |||||
|
|
|
| |||||
Balance as at the end of the year, net of deferred tax | ₹ | 5,906 | ₹ | (114) | ||||
|
|
|
|
As at March 31, 2017 and 2018, there were no significant gains or losses on derivative transactions or portions thereof that have become ineffective as hedges, or associated with an underlying exposure that did not occur.
14. Fair value hierarchy
Financial assets and liabilities include cash and cash equivalents, trade receivables, unbilled revenues, finance lease receivables, employee and other advances and eligible current andnon-current assets, long and short-term loans and borrowings, finance lease payables, bank overdrafts, trade payable, eligible current liabilities andnon-current liabilities.
The fair value of cash and cash equivalents, trade receivables, unbilled revenues, borrowings, trade payables, other current financial assets and liabilities approximate their carrying amount largely due to the short-term nature of these instruments. The Company’s long-term debt has been contracted at market rates of interest. Accordingly, the carrying value of such long-term debt approximates fair value. Further, finance lease receivables that are overdue are periodically evaluated based on individual credit worthiness of customers. Based on this evaluation, the Company records allowance for estimated losses on these receivables. As of March 31, 2018 and 2017, the carrying value of such receivables, net of allowances approximates the fair value.
Investments in liquid and short-term mutual funds, which are classified as FVTPL are measured using net asset values at the reporting date multiplied by the quantity held. Fair value of investments in certificate of deposits, commercial papers classified as FVTOCI is determined based on the indicative quotes of price and yields prevailing in the market at the reporting date. Fair value of investments in equity instruments classified as FVTOCI is determined using market and income approaches.
The fair value of derivative financial instruments is determined based on observable market inputs including currency spot and forward rates, yield curves, currency volatility etc.
Fair value hierarchy
The table below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follows:
Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 – Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
18
Particular | As at March 31, 2017 | As at March 31, 2018 | ||||||||||||||||||||||||||||||
Total | Fair value measurements at reporting date | Total | Fair value measurements at reporting date | |||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Derivative instruments: | ||||||||||||||||||||||||||||||||
Cash flow hedges | 7,307 | — | 7,307 | — | 1,139 | — | 1,139 | — | ||||||||||||||||||||||||
Others | 2,546 | — | 2,120 | 426 | 134 | — | 134 | — | ||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||||||||||
Investment in liquid and short-term mutual funds | 104,675 | 104,675 | — | — | 46,438 | 46,438 | — | — | ||||||||||||||||||||||||
Other investments | 569 | — | 569 | — | — | — | — | — | ||||||||||||||||||||||||
Investment in equity instruments | 5,303 | — | — | 5,303 | 5,685 | — | — | 5,685 | ||||||||||||||||||||||||
Commercial paper, Certificate of deposits and bonds | 145,614 | — | 145,614 | — | 176,234 | 1,951 | 174,283 | — | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Derivative instruments: | ||||||||||||||||||||||||||||||||
Cash flow hedges | (55 | ) | — | (55 | ) | — | (1,276 | ) | — | (1,276 | ) | — | ||||||||||||||||||||
Others | (2,655 | ) | — | (2,655 | ) | — | (941 | ) | — | (941 | ) | — | ||||||||||||||||||||
Contingent consideration | (339 | ) | — | — | (339 | ) | — | — | — | — |
The following methods and assumptions were used to estimate the fair value of the level 2 financial instruments included in the above table.
Derivative instruments (assets and liabilities): The Company enters into derivative financial instruments with various counter-parties, primarily banks with investment grade credit ratings. Derivatives valued using valuation techniques with market observable inputs are mainly interest rate swaps, foreign exchange forward contracts and foreign exchange option contracts. The most frequently applied valuation techniques include forward pricing, swap models and Black Scholes models (for option valuation), using present value calculations. The models incorporate various inputs including the credit quality of counterparties, foreign exchange spot and forward rates, interest rate curves and forward rate curves of the underlying. As at March 31, 2018, the changes in counterparty credit risk had no material effect on the hedge effectiveness assessment for derivatives designated in hedge relationships and other financial instruments recognized at fair value.
Investment in commercial papers, certificate of deposits and bonds: Fair value of these instruments is derived based on the indicative quotes of price and yields prevailing in the market as at reporting date.
Details of assets and liabilities considered under Level 3 classification
Investment in equity instruments | Derivative Assets - others | Liabilities - Contingent consideration | ||||||||||
Balance as at April 1, 2016 | ₹ | 4,907 | ₹ | 558 | ₹ | (2,251 | ) | |||||
Additions | 620 | — | — | |||||||||
Payouts | — | — | 138 | |||||||||
Gain/loss recognized in statement of income | — | (132 | ) | 1,546 | ||||||||
Gain/loss recognized in foreign currency translation reserve | (41 | ) | — | 198 | ||||||||
Gain/loss recognized in other comprehensive income | (183 | ) | — | — | ||||||||
Finance expense recognized in statement of income | — | — | 30 | |||||||||
|
|
|
|
|
| |||||||
Balance as at March 31, 2017 | ₹ | 5,303 | ₹ | 426 | ₹ | (339 | ) | |||||
|
|
|
|
|
| |||||||
Balance as at April 1, 2017 | ₹ | 5,303 | ₹ | 426 | ₹ | (339 | ) | |||||
Additions | 1,851 | — | — | |||||||||
Payouts | — | — | 164 | |||||||||
Transferred to investment in equity accounted investee | (357 | ) | — | — | ||||||||
Gain/loss recognized in statement of income | — | (426 | ) | 167 | ||||||||
Gain/loss recognized in foreign currency translation reserve | 53 | — | (32 | ) | ||||||||
Gain/loss recognized in other comprehensive income | (1,165 | ) | — | — | ||||||||
Finance expense recognized in statement of income | — | — | 40 | |||||||||
|
|
|
|
|
| |||||||
Balance as at March 31, 2018 | ₹ | 5,685 | ₹ | — | ₹ | — | ||||||
|
|
|
|
|
|
19
15. Foreign currency translation reserve
The movement in foreign currency translation reserve attributable to equity holders of the Company is summarized below:
As at | ||||||||
March 31, 2017 | March 31, 2018 | |||||||
Balance at the beginning of the year | ₹ | 16,116 | ₹ | 13,107 | ||||
Translation difference related to foreign operations, net | (3,285 | ) | 3,560 | |||||
Change in effective portion of hedges of net investment in foreign operations | 276 | (49 | ) | |||||
|
|
|
| |||||
Total change during the year | (3,009 | ) | 3,511 | |||||
|
|
|
| |||||
Balance at the end of the year | ₹ | 13,107 | ₹ | 16,618 | ||||
|
|
|
|
16. Income Taxes
Income tax expenses/ (credit) has been allotted as follows:
Three months ended March 31, | Year ended March 31, | |||||||||||||||
2017 | 2018 | 2017 | 2018 | |||||||||||||
Income tax expense as per the statement of income | ₹ | 6,742 | ₹ | 4,615 | ₹ | 25,213 | ₹ | 22,390 | ||||||||
Income tax included in Other comprehensive income on: |
| |||||||||||||||
Unrealized gains/ (losses) on investment securities | 68 | (479 | ) | 594 | (644 | ) | ||||||||||
Gains/(losses) on cash flow hedging derivatives | 665 | (409 | ) | 962 | (1,448 | ) | ||||||||||
Defined benefit plan actuarial gains/(losses) | 17 | 11 | 43 | 255 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
₹ 7,492 | ₹ 3,738 | ₹ 26,812 | ₹ 20,553 | |||||||||||||
|
|
|
|
|
|
|
|
Income tax expenses consists of the following:
Three months ended March 31, | Year ended March 31, | |||||||||||||||
2017 | 2018 | 2017 | 2018 | |||||||||||||
Current taxes | ||||||||||||||||
Domestic | ₹ | 6,359 | ₹ | 3,617 | ₹ | 21,089 | ₹ | 18,500 | ||||||||
Foreign | 1,937 | 3,006 | 5,412 | 7,834 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
8,296 | 6,623 | 26,501 | 26,334 | |||||||||||||
Deferred taxes | ||||||||||||||||
Domestic | (228 | ) | (407 | ) | (63 | ) | 3 | |||||||||
Foreign | (1,326 | ) | (1,601 | ) | (1,225 | ) | (3,947 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
(1,554 | ) | (2,008 | ) | (1,288 | ) | (3,944 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
₹ | 6,742 | ₹ | 4,615 | ₹ | 25,213 | ₹ | 22,390 | |||||||||
|
|
|
|
|
|
|
|
Income tax expense is net of reversal of provisions/ (provision recorded) pertaining to earlier periods, which are no longer required, amounting to₹ (336) and₹ (531) for the three months ended March 31, 2017 and 2018 respectively and₹ 593 and₹ 380 for the year ended March 31, 2017 and 2018.
17. Revenues
Three months ended March 31, | Year ended March 31, | |||||||||||||||
2017 | 2018 | 2017 | 2018 | |||||||||||||
Rendering of services | ₹ | 132,403 | ₹ | 132,746 | ₹ | 522,061 | ₹ | 524,543 | ||||||||
Sale of products | 7,472 | 4,940 | 28,341 | 20,328 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total revenues | ₹ | 139,875 | ₹ | 137,686 | ₹ | 550,402 | ₹ | 544,871 | ||||||||
|
|
|
|
|
|
|
|
20
18. Expenses by nature
Three months ended March 31, | Year ended March 31, | |||||||||||||||
2017 | 2018 | 2017 | 2018 | |||||||||||||
Employee compensation (refer note 22) | ₹ | 68,747 | ₹ | 69,760 | ₹ | 268,081 | ₹ | 272,223 | ||||||||
Sub-contracting/technical fees | 21,244 | 21,144 | 82,747 | 84,437 | ||||||||||||
Cost of hardware and software | 7,101 | 4,670 | 27,216 | 18,985 | ||||||||||||
Travel | 4,492 | 4,078 | 20,147 | 17,399 | ||||||||||||
Facility expenses | 4,798 | 5,700 | 19,297 | 21,044 | ||||||||||||
Depreciation, amortization and impairment | 8,181 | 5,702 | 23,107 | 21,124 | ||||||||||||
Communication | 1,402 | 1,353 | 5,370 | 5,353 | ||||||||||||
Legal and professional fees | 1,319 | 1,246 | 4,957 | 4,690 | ||||||||||||
Rates, taxes and insurance | 578 | 658 | 2,261 | 2,400 | ||||||||||||
Marketing and brand building | 764 | 746 | 2,936 | 3,140 | ||||||||||||
Provision for doubtful debts and deferred contract cost * | 89 | 2,437 | 2,427 | 6,565 | ||||||||||||
Miscellaneous expenses | 1,159 | 1,364 | 5,836 | 4,705 | ||||||||||||
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|
|
|
|
|
|
| |||||||||
Total cost of revenues, selling and marketing and general and administrative expenses | ₹ | 119,874 | ₹ | 118,858 | ₹ | 464,382 | ₹ | 462,065 | ||||||||
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|
|
|
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|
|
* | Consequent to insolvency of two of our customers, the Company has recognized provision of₹ 4,612 for impairment of receivables and deferred contract cost.₹ 416 and₹ 4,196 of these provision have been included in cost of revenue and General and administrative expenses respectively for the year ended March 31, 2018. |
19. Finance expense
Three months ended March 31, | Year ended March 31, | |||||||||||||||
2017 | 2018 | 2017 | 2018 | |||||||||||||
Interest expense | ₹ | 697 | ₹ | 1,075 | ₹ | 2,675 | ₹ | 3,451 | ||||||||
Exchange fluctuation on foreign currency borrowings, net | 473 | 489 | 3,267 | 2,379 | ||||||||||||
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| |||||||||
₹ 1,170 | ₹ 1,564 | ₹ 5,942 | ₹ 5,830 | |||||||||||||
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20. Finance and other income
Three months ended March 31, | Year ended March 31, | |||||||||||||||
2017 | 2018 | 2017 | 2018 | |||||||||||||
Interest income | ₹ | 4,305 | ₹ | 4,095 | ₹ | 18,066 | ₹ | 17,806 | ||||||||
Dividend income | 116 | 148 | 311 | 609 | ||||||||||||
Net gain from investments classified as FVTPL | 1,309 | 538 | 3,822 | 5,410 | ||||||||||||
Net gain from investments classified as FVTOCI | 23 | 22 | 220 | 174 | ||||||||||||
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| |||||||||
₹ 5,753 | ₹ 4,803 | ₹ 22,419 | ₹ 23,999 | |||||||||||||
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21. Earnings per equity share
A reconciliation of profit for the period and equity shares used in the computation of basic and diluted earnings per equity share is set out below:
Basic: Basic earnings per share is calculated by dividing the profit attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the period, excluding equity shares purchased by the Company and held as treasury shares. Earnings per share and number of share outstanding for the three months and year ended March 31, 2017 and 2018, have been proportionately adjusted for the bonus issue in the ratio of 1:1 as approved by the shareholders on June 03, 2017.
Three months ended March 31, | Year ended March 31, | |||||||||||||||
2017 | 2018 | 2017 | 2018 | |||||||||||||
Profit attributable to equity holders of the Company | ₹ | 22,611 | ₹ | 18,028 | ₹ | 84,895 | ₹ | 80,081 | ||||||||
Weighted average number of equity shares outstanding | 4,835,568,066 | 4,503,353,231 | 4,857,081,010 | 4,750,043,400 | ||||||||||||
Basic earnings per share | ₹ | 4.68 | ₹ | 4.00 | ₹ | 17.48 | ₹ | 16.86 |
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.
21
Three months ended March 31, | Year ended March 31, | |||||||||||||||
2017 | 2018 | 2017 | 2018 | |||||||||||||
Profit attributable to equity holders of the Company | ₹ | 22,611 | ₹ | 18,028 | ₹ | 84,895 | ₹ | 80,081 | ||||||||
Weighted average number of equity shares outstanding | 4,835,568,066 | 4,503,353,231 | 4,857,081,010 | 4,750,043,400 | ||||||||||||
Effect of dilutive equivalent share options | 14,126,144 | 8,552,810 | 14,266,128 | 8,318,575 | ||||||||||||
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| |||||||||
Weighted average number of equity shares for diluted earnings per share | 4,849,694,210 | 4,511,906,041 | 4,871,347,138 | 4,758,361,975 | ||||||||||||
Diluted earnings per share | ₹ | 4.66 | ₹ | 4.00 | ₹ | 17.43 | ₹ | 16.83 |
22. Employee benefits
a) Employee costs include:
Three months ended March 31, | Year ended March 31, | |||||||||||||||
2017 | 2018 | 2017 | 2018 | |||||||||||||
Salaries and bonus | ₹ | 66,370 | ₹ | 67,076 | ₹ | 259,270 | ₹ | 263,064 | ||||||||
Employee benefit plans | ||||||||||||||||
Gratuity and other defined benefit plans | 297 | 559 | 1,095 | 1,399 | ||||||||||||
Contribution to provident and other funds | 1,610 | 1,667 | 5,974 | 6,413 | ||||||||||||
Share based compensation | 470 | 458 | 1,742 | 1,347 | ||||||||||||
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|
| |||||||||
₹ 68,747 | ₹ 69,760 | ₹ 268,081 | ₹ 272,223 | |||||||||||||
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b) The employee benefit cost is recognized in the following line items in the statement of income:
Three months ended March 31, | Year ended March 31, | |||||||||||||||
2017 | 2018 | 2017 | 2018 | |||||||||||||
Cost of revenues | ₹ | 58,642 | ₹ | 58,583 | ₹ | 226,595 | ₹ | 228,936 | ||||||||
Selling and marketing expenses | 6,014 | 7,228 | 26,051 | 28,070 | ||||||||||||
General and administrative expenses | 4,091 | 3,949 | 15,435 | 15,217 | ||||||||||||
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|
|
|
|
|
|
| |||||||||
₹ 68,747 | ₹ 69,760 | ₹ 268,081 | ₹ 272,223 | |||||||||||||
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|
|
The Company has granted 58,000 and 3,514,800 options under RSU option plan during the three months and year ended March 31, 2018 respectively (Nil and 2,319,000 for the three months and year ended March 31, 2017); 65,000 and 2,783,400 options under ADS option plan during the three months and year ended March 31, 2018 respectively (Nil and 2,191,500 for three months and year ended March 31, 2017).
The Company has also granted Nil and 1,097,600 Performance based stock options (RSU) during the three months and year ended March 31, 2018 respectively (Nil and 79,000 for the three months and year ended March 31, 2017); Nil and 1,113,600 Performance based stock options (ADS) during the three months and year ended March 31, 2018 respectively (Nil and 188,000 for three months and year ended March 31, 2017).
The RSU grants were issued under Wipro Employee Restricted Stock Unit plan 2007 (WSRUP 2007 plan) and the ADS grants were issued under Wipro ADS Restricted Stock Unit Plan (WARSUP 2004 plan).
23. Commitments and contingencies
Capital commitments: As at March 31, 2017 and March 31, 2018, the Company had committed to spend approximately₹12,238 and₹ 13,091 respectively, under agreements to purchase property and equipment. These amounts are net of capital advances paid in respect of these purchases.
Guarantees: As at March 31, 2017 and March 31, 2018, performance and financial guarantees provided by banks on behalf of the Company to the Indian Government, customers and certain other agencies amount to approximately₹ 22,023 and₹ 21,546 respectively, as part of the bank line of credit.
Contingencies and lawsuits: The Company is subject to legal proceedings and claims (including tax assessment orders/ penalty notices) which have arisen in the ordinary course of its business. Some of the claims involve complex issues and it is not possible to make a reasonable estimate of the expected financial effect, if any, that will result from ultimate resolution of such proceedings. However, the resolution of these legal proceedings is not likely to have a material and adverse effect on the results of operations or the financial position of the Company. The significant of such matters are discussed below.
In March 2004, the Company received a tax demand for year ended March 31, 2001 arising primarily on account of denial of deduction under section 10A of the Income Tax Act, 1961 (Act) in respect of profit earned by the Company’s undertaking in Software Technology Park at Bangalore. The same issue was repeated in the successive assessments for the years ended March 31, 2002 to March 31, 2011 and the aggregate demand is₹ 47,583 (including interest of₹ 13,832). The appeals filed against the said demand before the Appellate
22
authorities have been allowed in favor of the Company by the second appellate authority for the years up to March 31, 2008. Further appeals have been filed by the Income tax authorities before the Hon’ble High Court. The Hon’ble High Court has heard anddisposed-off majority of the issues in favor of the Company up to years ended March 31, 2004. Department has filed a Special Leave Petition (SLP) before the Supreme Court of India for the year ended March 31, 2001 to March 31, 2004.
On similar issues for years up to March 31, 2000, the Hon’ble High Court of Karnataka has upheld the claim of the Company under section 10A of the Act. For the year ended March 31, 2009, the appeals are pending before Income Tax Appellate Tribunal (Tribunal). For years ended March 31, 2010 and March 31, 2011 the Dispute Resolution Panel (DRP) allowed the claim of the Company under section 10A of the Act. The Income tax authorities have filed an appeal before the Tribunal.
The Company received the draft assessment order for the year ended March 31, 2012 in March 2016 with a proposed demand of₹ 4,241 (including interest of₹ 1,376). Based on the DRP’s direction, allowing majority of the issues in favor of the Company, the assessing officer has passed the final order with₹ Nil demand. However, on similar issue for earlier years, the Income Tax authorities have appealed before the Tribunal.
For year ended March 31, 2013 the Company received the final assessment order in November 2017 with a proposed demand of₹ 3,286 (including interest of₹ 1,166), arising primarily on account of section 10AA issues with respect to exclusion from Export Turnover. The Company has filed an appeal before Hon’ble ITAT, Bengaluru within the prescribed timelines.
For year ended March 31, 2014 the Company received the draft assessment order in January 2018 with a proposed demand of₹ 8,701 (including interest of₹ 2,700), arising primarily on account of section 10AA issues with respect to exclusion from Export Turnover. The Company has filed the appeal before DRP.
Considering the facts and nature of disallowance and the order of the appellate authority / Hon’ble High Court of Karnataka upholding the claims of the Company for earlier years, the Company believes that the final outcome of the above disputes should be in favor of the Company and there should not be any material adverse impact on the financial statements.
Income tax demands against the Company amounting to₹ 89,623 and₹ 101,440 are not acknowledged as debt as at March 31, 2017 and 2018, respectively. These matters are pending before various Appellate Authorities and the management expects its position will likely be upheld on ultimate resolution and will not have a material adverse effect on the Company’s financial position and results of operations.
The contingent liability in respect of disputed demands for excise duty, custom duty, sales tax and other matters amounts to₹ 7,242 and₹ 7,745 as of March 31, 2017 and March 31, 2018. However, the resolution of these legal proceedings is not likely to have a material and adverse effect on the results of operations or the financial position of the Company.
In December 2017, National Grid filed a legal claim against the Company in U.S.District Court of the Eastern District of New York seeking damages amounting to $140 (₹ 9,124) plus additional costs related to an ERP implementation project that was completed in 2014. The Company expects to defend itself against the claim and believes that the claim will not sustain.
24. Segment information
The Company is organized by the following operating segments; IT Services and IT Products.
IT Services: The IT Services segment primarily consists of IT Service offerings to customers organized by industry verticals. The industry verticals are as follows: Banking, Financial Services and Insurance (BFSI), Healthcare and Lifesciences (HLS), Consumer Business Unit (CBU), Energy, Natural Resources and Utilities (ENU), Manufacturing and Technology (MNT) and Communications (COMM). IT Services segment also includes Others which comprises dividend income relating to strategic investments, which are presented within “Finance and other Income” in the statement of Income. Key service offerings to customers includes software application development and maintenance, research and development services for hardware and software design, business application services, analytics, consulting, infrastructure outsourcing services and business process services.
IT Products: The Company is a value added reseller of desktops, servers, notebooks, storage products, networking solutions and packaged software for leading international brands. In certain total outsourcing contracts of the IT Services segment, the Company delivers hardware, software products and other related deliverables. Revenue relating to the above items is reported as revenue from the sale of IT Products.
The Chairman and Managing Director of the Company has been identified as the Chief Operating Decision Maker (CODM) as defined by IFRS 8, “Operating Segments.” The Chairman of the Company evaluates the segments based on their revenue growth and operating income.
Assets and liabilities used in the Company’s business are not identified to any of the operating segments, as these are used interchangeably between segments. Management believes that it is currently not practicable to provide segment disclosures relating to total assets and liabilities since a meaningful segregation of the available data is onerous.
23
Information on reportable segment for the year ended March 31, 2018 is as follows:
IT Services | IT Products | Reconciling Items | Entity total | |||||||||||||||||||||||||||||||||||||
BFSI | HLS | CBU | ENU | MNT | COMM | Total | ||||||||||||||||||||||||||||||||||
Revenue | 148,062 | 74,177 | 83,762 | 68,427 | 120,272 | 33,710 | 528,410 | 17,998 | (49 | ) | 546,359 | |||||||||||||||||||||||||||||
Segment Result | 24,626 | 9,620 | 13,060 | 8,060 | 21,742 | 3,158 | 80,266 | 362 | 319 | 80,947 | ||||||||||||||||||||||||||||||
Unallocated | 3,347 | — | — | 3,347 | ||||||||||||||||||||||||||||||||||||
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|
| |||||||||||||||||||||||||||||||||
Segment Result Total | 83,613 | 362 | 319 | 84,294 | ||||||||||||||||||||||||||||||||||||
Finance expense | (5,830 | ) | ||||||||||||||||||||||||||||||||||||||
Finance and other income | 23,999 | |||||||||||||||||||||||||||||||||||||||
Share of profit/ (loss) of equity accounted investee | 11 | |||||||||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||||||||||
Profit before tax | 102,474 | |||||||||||||||||||||||||||||||||||||||
Income tax expense | (22,390 | ) | ||||||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Profit for the year | 80,084 | |||||||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 21,124 |
Information on reportable segment for the year ended March 31, 2017 is as follows:
IT Services | IT Products | Reconciling Items | Entity total | |||||||||||||||||||||||||||||||||||||
BFSI | HLS | CBU | ENU | MNT | COMM | Total | ||||||||||||||||||||||||||||||||||
Revenue | 135,967 | 82,242 | 83,417 | 68,883 | 119,175 | 38,756 | 528,440 | 25,922 | (183 | ) | 554,179 | |||||||||||||||||||||||||||||
Other operating income | — | — | — | — | — | — | 4,082 | — | — | 4,082 | ||||||||||||||||||||||||||||||
Segment Result | 24,939 | 9,479 | 14,493 | 14,421 | 23,453 | 6,149 | 92,934 | (1,680 | ) | (506 | ) | 90,748 | ||||||||||||||||||||||||||||
Unallocated | (951 | ) | — | — | (951 | ) | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||||||||||||||||
Segment Result Total | 96,065 | (1,680 | ) | (506 | ) | 93,879 | ||||||||||||||||||||||||||||||||||
Finance expense | (5,942 | ) | ||||||||||||||||||||||||||||||||||||||
Finance and other income | 22,419 | |||||||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Profit before tax | 110,356 | |||||||||||||||||||||||||||||||||||||||
Income tax expense | (25,213 | ) | ||||||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Profit for the year | 85,143 | |||||||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 23,107 |
Information on reportable segment for the three months ended March 31, 2018 is as follows:
IT Services | IT Products | Reconciling Items | Entity total | |||||||||||||||||||||||||||||||||||||
BFSI | HLS | CBU | ENU | MNT | COMM | Total | ||||||||||||||||||||||||||||||||||
Revenue | 39,013 | 18,575 | 21,029 | 16,768 | 30,870 | 7,864 | 134,119 | 4,169 | (45 | ) | 138,243 | |||||||||||||||||||||||||||||
Segment Result | 6,298 | 1,824 | 3,013 | 2,286 | 5,475 | (753 | ) | 18,143 | 48 | 14 | 18,205 | |||||||||||||||||||||||||||||
Unallocated | 1,180 | — | — | 1,180 | ||||||||||||||||||||||||||||||||||||
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|
|
|
|
|
| |||||||||||||||||||||||||||||||||
Segment Result Total | 19,323 | 48 | 14 | 19,385 | ||||||||||||||||||||||||||||||||||||
Finance expense | (1,564 | ) | ||||||||||||||||||||||||||||||||||||||
Finance and other income | 4,803 | |||||||||||||||||||||||||||||||||||||||
Share of profit/ (loss) of equity accounted investee | (3 | ) | ||||||||||||||||||||||||||||||||||||||
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| |||||||||||||||||||||||||||||||||||||||
Profit before tax | 22,621 | |||||||||||||||||||||||||||||||||||||||
Income tax expense | (4,615 | ) | ||||||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Profit for the year | 18,006 | |||||||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 5,702 |
24
Information on reportable segment for the three ended March 31, 2017 is as follows:
IT Services | IT Products | Reconciling Items | Entity total | |||||||||||||||||||||||||||||||||||||
BFSI | HLS | CBU | ENU | MNT | COMM | Total | ||||||||||||||||||||||||||||||||||
Revenue | 34,911 | 20,456 | 21,204 | 17,515 | 30,657 | 9,278 | 134,021 | 6,613 | (14 | ) | 140,620 | |||||||||||||||||||||||||||||
Other operating income | — | — | — | — | — | — | 4,082 | — | — | 4,082 | ||||||||||||||||||||||||||||||
Segment Result | 5,153 | (11 | ) | 3,719 | 4,097 | 5,969 | 1,449 | 20,376 | (428 | ) | (13 | ) | 19,935 | |||||||||||||||||||||||||||
Unallocated | 811 | — | — | 811 | ||||||||||||||||||||||||||||||||||||
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|
|
|
|
|
| |||||||||||||||||||||||||||||||||
Segment Result Total | 25,269 | (428 | ) | (13 | ) | 24,828 | ||||||||||||||||||||||||||||||||||
Finance expense | (1,170 | ) | ||||||||||||||||||||||||||||||||||||||
Finance and other income | 5,753 | |||||||||||||||||||||||||||||||||||||||
Share of profit/ (loss) of equity accounted investee | — | |||||||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Profit before tax | 29,411 | |||||||||||||||||||||||||||||||||||||||
Income tax expense | (6,742 | ) | ||||||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Profit for the year | 22,669 | |||||||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 8,181 |
The Company has four geographic segments: India, Americas, Europe and Rest of the world. Revenues from the geographic segments based on domicile of the customer are as follows:
Three months ended March 31, | Year ended March 31, | |||||||||||||||
2017 | 2018 | 2017 | 2018 | |||||||||||||
India | 11,000 | 10,548 | 46,555 | 43,099 | ||||||||||||
America | 73,888 | 70,936 | 290,719 | 283,515 | ||||||||||||
Europe | 34,929 | 36,808 | 133,909 | 138,597 | ||||||||||||
Rest of the world | 20,803 | 19,951 | 82,996 | 81,148 | ||||||||||||
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|
|
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| |||||||||
140,620 | 138,243 | 554,179 | 546,359 | |||||||||||||
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|
|
Management believes that it is currently not practicable to provide disclosure of geographical location wise assets, since the meaningful segregation of the available information is onerous.
No customer individually accounted for more than 10% of the revenues during the three and year ended March 31, 2017 and 2018.
Notes:
a) | “Reconciling items” includes elimination of inter-segment transactions and other corporate activities. |
b) | Revenue from sale of traded cloud based licenses is reported as part of IT Services revenues. |
c) | For the purpose of segment reporting, the Company has included the impact of “foreign exchange gains / (losses), net” in revenues (which is reported as a part of operating profit in the statement of profit and loss). |
d) | For evaluating performance of the individual operating segments, stock compensation expense is allocated on the basis of straight line amortization. The differential impact of accelerated amortization of stock compensation expense over stock compensation expense allocated to the individual operating segments is reported in reconciling items. |
e) | The Company generally offers multi-year payment terms in certain total outsourcing contracts. These payment terms primarily relate to IT hardware, software and certain transformation services in outsourcing contracts. The finance income on deferred consideration earned under these contracts is included in the revenue of the respective segment and is eliminated under reconciling items. |
f) | Segment results for ENU and COMM industry vertical for the year ended March 31, 2018 is after considering the impact of provision for impairment of receivables and deferred contract costs (Refer note 18). |
g) | Net gain from sale of EcoEnergy division amounting to₹ 4,082 is included as part of IT Services segment result for the year ended March 31, 2017. |
25
25. List of subsidiaries and equity accounted investee as of March 31, 2018 is provided below:
Subsidiaries | Subsidiaries | Subsidiaries | Country of Incorporation | |||
Wipro LLC | USA | |||||
Wipro Gallagher Solutions, Inc. | USA | |||||
Opus Capital Markets Consultants LLC | USA | |||||
Wipro Promax Analytics Solutions LLC | USA | |||||
Infocrossing, Inc. | USA | |||||
Wipro Insurance Solutions LLC Wipro Data Centre and Cloud Services, Inc. Wipro IT Services, Inc. | USA USA
USA | |||||
HPH Holdings Corp.(A) Appirio, Inc. (A) | USA USA | |||||
Cooper Software, Inc. | USA | |||||
Wipro Overseas IT Services Pvt. Ltd | India | |||||
Wipro Japan KK | Japan | |||||
Wipro Shanghai Limited | China | |||||
Wipro Trademarks Holding Limited | India | |||||
Wipro Travel Services Limited | India | |||||
Wipro Holdings UK Limited | U.K. | |||||
Wipro Information Technology Austria GmbH | Austria | |||||
Wipro Technologies Austria GmbH | Austria | |||||
Wipro Digital Aps | Denmark | |||||
Designit A/S(A) | Denmark | |||||
Wipro Europe Limited | U.K. | |||||
Wipro UK Limited | U.K. | |||||
Wipro Financial Services UK Limited | U.K. | |||||
Wipro Cyprus Private Limited | Cyprus | |||||
Wipro Doha LLC # | Qatar | |||||
Wipro Technologies S.A DE C.V | Mexico | |||||
Wipro BPO Philippines LTD. Inc. | Philippines | |||||
Wipro Holdings Hungary Korlátolt Felelősségű Társaság | Hungary | |||||
Wipro Holdings Investment Korlátolt Felelősségű Társaság | Hungary | |||||
Wipro Technologies SA | Argentina | |||||
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.zo.o | Poland | |||||
Wipro Technologies Australia Pty Ltd | Australia | |||||
Wipro Corporate Technologies Wipro Technologies South Africa (Proprietary) Limited | Ghana
South Africa | |||||
Wipro Technologies Nigeria Limited | Nigeria | |||||
Wipro IT Service Ukraine LLC Wipro Information Technology | Ukraine Netherlands | |||||
Wipro Portugal S.A.(A) | Portugal |
26
Subsidiaries | Subsidiaries | Subsidiaries | Country of Incorporation | |||
Wipro Technologies Limited, Russia | Russia | |||||
Wipro Technology Chile SPA | Chile | |||||
Wipro Solutions Canada Limited | Canada | |||||
Wipro Information Technology Kazakhstan LLP | Kazakhstan | |||||
Wipro Technologies W.T. Sociedad Anonima | Costa Rica | |||||
Wipro Outsourcing Services (Ireland) Limited | Ireland | |||||
Wipro Technologies VZ, C.A. | Venezuela | |||||
Wipro Technologies Peru S.A.C InfoSERVER S.A. Wipro do Brasil Technologia Ltda(A) | Peru Brazil Brazil | |||||
Wipro Technologies SRL | Romania | |||||
PT WT Indonesia | Indonesia | |||||
Wipro (Thailand) Co Limited | Thailand | |||||
Wipro Bahrain Limited WLL | Bahrain | |||||
Wipro Gulf LLC | Sultanate of Oman | |||||
Rainbow Software LLC | Iraq | |||||
Cellent GmbH | Germany | |||||
Cellent Mittelstandsberatung GmbH | Germany | |||||
Cellent Gmbh(A) | Austria | |||||
Wipro Networks Pte Limited | Singapore | |||||
Wipro (Dalian) Limited | China | |||||
Wipro Technologies SDN BHD | Malaysia | |||||
Wipro Chengdu Limited | China | |||||
Wipro Airport IT Services Limited * | India | |||||
Appirio India Cloud Solutions Private Limited | India | |||||
Wipro IT Services Bangladesh Limited | Bangladesh |
* | All the above direct subsidiaries are 100% held by the Company except that the Company holds 66.67% of the equity securities of Wipro Arabia Co. Limited and 74% of the equity securities of Wipro Airport IT Services Limited and 55% of the equity securities of Women’s Business Park Technologies Limited are held by Wipro Arabia Co. Limited. |
# | 51% of equity securities of Wipro Doha LLC are held by a local shareholder. However, the beneficial interest in these holdings is with the Company. |
The Company controls ‘The Wipro SA Broad Based Ownership Scheme Trust’, ‘Wipro SA Broad Based Ownership Scheme SPV (RF) (PTY) LTD incorporated in South Africa and Wipro Foundation in India
(A) | Step Subsidiary details of Wipro Portugal S.A, Wipro do Brasil Technologia Ltda , Digital A/s, Cellent GmbH, HPH Holdings Corp. and Appirio, Inc. are as follows: |
Subsidiaries | Subsidiaries | Subsidiaries | Country of Incorporation | |||
Wipro Portugal S.A. | Portugal | |||||
Wipro Technologies Gmbh | Germany | |||||
New Logic Technologies SARL | France | |||||
Wipro do Brasil Technologia Ltda | Brazil | |||||
Wipro Do Brasil Sistemetas De Informatica Ltd | Brazil | |||||
Designit A/S | Denmark | |||||
Designit Denmark A/S | Denmark | |||||
Designit Munich GmbH | Germany | |||||
Designit Oslo A/S | Norway | |||||
Designit Sweden AB | Sweden | |||||
Designit T.L.V Ltd. | Israel | |||||
Designit Tokyo Lt.d | Japan | |||||
Denextep Spain Digital, S.L | Spain |
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Subsidiaries | Subsidiaries | Subsidiaries | Country of Incorporation | |||
Designit Colombia S A S Designit Peru SAC | Colombia Peru | |||||
Cellent GmbH | Frontworx Informations technologie GmbH | Austria Austria | ||||
HPH Holdings Corp. |
HealthPlan Services Insurance Agency, Inc. HealthPlan Services, Inc. | USA USA
USA | ||||
Appirio, Inc. | USA | |||||
Appirio, K.K Topcoder, Inc. Appirio Ltd | Japan USA Ireland | |||||
Appirio GmbH Apprio Ltd (UK) | Germany U.K. | |||||
Appirio Singapore Pte Ltd | Singapore |
As of March 31, 2018, the Company held 43.7% interest in Drivestream Inc and 33.3% interest in Demin Group LLC, accounted for using the equity method.
26. Bank balance
Details of balance with bank as of March 31, 2018 are as follows:
Name of Bank | In Current Account | In Deposit Account | Total | |||||||||
Citi Bank | 12,144 | 1,007 | 13,151 | |||||||||
HSBC | 4,907 | 3,323 | 8,230 | |||||||||
Deutsche Bank | — | 4,500 | 4,500 | |||||||||
Yes Bank | 53 | 4,216 | 4,269 | |||||||||
ANZ Bank | 232 | 3,845 | 4,077 | |||||||||
HDFC Bank | 517 | 2,150 | 2,667 | |||||||||
Saudi British Bank | 100 | 1,651 | 1,751 | |||||||||
Wells Fargo Bank | 1,400 | — | 1,400 | |||||||||
Standard Chartered Bank | 706 | — | 706 | |||||||||
ICICI Bank | 12 | 602 | 614 | |||||||||
Silicon Valley Bank | 331 | — | 331 | |||||||||
IOB | — | 292 | 292 | |||||||||
Unicredit Bank Austria AG | 192 | — | 192 | |||||||||
Bank of Montreal | 192 | — | 192 | |||||||||
BNP Paribas | 156 | — | 156 | |||||||||
Kreissparkasse | 135 | — | 135 | |||||||||
RABO Bank | 66 | — | 66 | |||||||||
State Bank of India | 65 | — | 65 | |||||||||
Bradesco S.A | 56 | 3 | 59 | |||||||||
Funds in Transit | 1,134 | — | 1,134 | |||||||||
Other | 902 | 36 | 938 | |||||||||
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Total | 23,300 | 21,625 | 44,925 | |||||||||
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27. Buyback of equity shares
During the current period, the Company has concluded the buyback of 343.75 million equity shares as approved by the Board of Directors on July 20, 2017. This has resulted in a total cash outflow of₹ 110,000 million. In line with the requirement of the Companies Act 2013, an amount of₹ 1,656 and₹ 108,344 has been utilized from the share premium account and retained earnings respectively. Further, capital redemption reserves (included in other reserves) of₹ 687 (representing the nominal value of the shares bought back) has been created as an apportionment from retained earnings. Consequent to such buy back, share capital has reduced by₹ 687.
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28. Assets held for sale
During the quarter ended March 31, 2018, the Company has signed a definitive agreement to divest its hosted data center services business to Ensono holdings, LLC and its affiliates (Ensono Group). The sale is expected to conclude during the quarter ended June 30, 2018.
Further on April 5, 2018, the Company has reduced its equity holding from 74% to 11% in Wipro Airport IT Services Limited.
These disposal groups do not constitute a major component of the Company and hence are not classified as discontinued operations.
The assets and liabilities associated with these transactions are classified as assets held for sale and liabilities directly associated with assets held for sale amounting to₹ 27,201 and₹ 6,212 respectively.
The accompanying notes form an integral part of these consolidated financial statements
As per our report of even date attached | For and on behalf of the Board of Directors | |||||
for Deloitte Haskins & Sells LLP | Azim H Premji | N Vaghul | Abidali Neemuchwala | |||
Chartered Accountants | Executive Chairman | Director | Chief Executive Officer | |||
Firm’s Registration No: 117366W/W- 100018 | & Managing Director | & Executive Director | ||||
Vikas Bagaria | Jatin Pravinchandra Dalal | M Sanaulla Khan | ||||
Partner | Chief Financial Officer | Company Secretary | ||||
Membership No. 60408 |
Bangalore
April 25, 2018
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