EX-19.1 3 f85514exv19w1.txt EXHIBIT 19.1 EXHIBIT 19.1 [WIPRO LOGO] FOR IMMEDIATE RELEASE Results for the Quarter ended September 2002 under Consolidated Indian GAAP WIPRO'S REVENUE UP 21%; STRONG VOLUME GROWTH IN IT SERVICES BANGALORE, OCTOBER 18 2002 --Wipro Limited today announced its audited results approved by the Board of Directors for the quarter ended September 2002. HIGHLIGHTS OF RESULTS: - Revenue for the quarter was Rs. 10.6 billion, an increase of 21% year on year and Profit After Tax for the quarter was Rs. 2.2 billion, an increase of 2% year on year. Revenue(1) from continuing operations for the six-month period was Rs. 19.9 billion, an increase of 21% year on year. Profit After Tax(2) for the six-month period was Rs.4.0 billion. - Wipro Technologies Revenue for the quarter increased 19% year on year to Rs.6.8 billion. - Wipro Technologies Profit Before Interest and Tax (PBIT) at Rs.2 billion was 30% of Revenue. - 30 new customers added in Global IT Services during the quarter, including seven that are on the Fortune 1000 list. - Wipro Spectramind recorded Revenue of Rs. 421 million and PBIT of Rs. 87 million at 21% of Revenue. OUTLOOK FOR THE QUARTER ENDING DECEMBER 2002 AZIM PREMJI, CHAIRMAN OF WIPRO COMMENTING ON THE RESULTS SAID, "A CHALLENGING GLOBAL BUSINESS ENVIRONMENT HAS MADE INDIA-BASED OFFSHORE INITIATIVES A KEY PRIORITY FOR GLOBAL CORPORATIONS. WIPRO IS WELL POSITIONED TO TAKE ADVANTAGE OF THIS OPPORTUNITY WITH ITS WIDE RANGE OF OFFSHORE SERVICES OFFERINGS FOR ENTERPRISE CLIENTS AND ITS DEPTH OF R&D SKILLS FOR THE TECHNOLOGY CLIENTS. WE SHOULD SEE THE MOMENTUM IN VOLUME GROWTH OF THE LAST TWO QUARTERS CONTINUE. FOR THE QUARTER ENDING DECEMBER 2002, WE ESTIMATE THE REVENUE IN OUR GLOBAL IT SERVICES BUSINESS TO BE APPROXIMATELY AT $152 MILLION, IN WIPRO SPECTRAMIND TO BE APPROXIMATELY AT $12.5 MILLION AND IN HEALTHCARE AND LIFE SCIENCE BUSINESS AT APPROXIMATELY $3.5 MILLION." VIVEK PAUL, VICE CHAIRMAN AND CEO OF WIPRO TECHNOLOGIES, OUR GLOBAL IT BUSINESS, ADDED, "THE SEQUENTIAL REVENUE GROWTH OF 11% IN DOLLAR TERMS WAS PRIMARILY DRIVEN BY A 12% GROWTH IN VOLUME. WE SEE PRICING PRESSURES FLATTENING. BUSINESS TRACTION CONTINUES FROM BOTH NEW AS WELL AS EXISTING CLIENTS. WE ACQUIRED 30 NEW CLIENTS, SEVEN OF WHOM WERE IN THE FORTUNE 1000 LIST, AND WON TWO ORDERS FOR TOTAL PRODUCT OWNERSHIP FROM OUR EXISTING R&D CLIENTS DURING THE QUARTER. THE INTEGRATION OF WIPRO SPECTRAMIND IS ON PLAN AND THE RESULTS OF THE COMBINED OFFERINGS ARE ALREADY VISIBLE IN THE CLIENT TRACTION WE SEE IN THE MARKET PLACE. DURING THE QUARTER WIPRO SPECTRAMIND HAS SIGNED LETTERS OF INTENT WITH FOUR NEW CLIENTS, INCLUDING ONE FOR BUSINESS PROCESS OUTSOURCING." -------- (1) Excluding Revenues of Rs. 38 million for the s ix-months ended September 2002 from discontinued ISP business. Corresponding Revenue for the six-months ended September 30, 2001 was Rs. 310 million (2) Excluding loss (net of tax) of Rs. 394 million for the six-month period ended September 2002 pertaining to discontinued ISP business which includes loss from operations (net of tax) of Rs. 106 million (previous period - Rs.33 million) and loss on write off of assets and exit costs of Rs. 288 million of the discontinued business WIPRO LIMITED Revenues for the quarter ended September 30, 2002, were Rs.10.6 billion, a growth of 21% year on year. Profit After Tax was Rs. 2.2 billion, representing an increase of 2% over Profit After Tax for the same period last year. Revenues(1) for the six-months ended September 30, 2002, were Rs.19.9 billion, representing a 21% increase over the previous year. Profit after Tax(2) for the six-month period was Rs. 4.0 billion. WIPRO TECHNOLOGIES -- OUR GLOBAL IT BUSINESS Wipro Technologies accounted for 64% of the Revenue and 85% of the PBIT for the quarter ended September 30, 2002. Wipro Technologies grew its Revenue by 19% year on year to Rs. 6.8 billion and PBIT by 6% to Rs. 2.0 billion. Operating Margin to Revenue was 30%, a decline of 1% sequentially and 4% year on year. Sequentially, increase in utilization of IT professionals by 1% to 67% was partially offset by price realization decline of 2.7% for offshore projects and 0.1% for onsite projects. Year on year, increase in IT professional utilization by 7% to 67% was offset by decrease in price realizations of 7.2% for Offshore projects and 8.6% for Onsite projects. For the quarter ended September 30, 2002, the Enterprise Solutions practice contributed 60% of Revenue while the R&D Services practice the balance 40%. The proportion of Global IT Services Revenues from North America increased to 65% during the quarter from 55% a year ago. Correspondingly, the proportion of Revenue from Europe declined to 29% from 39% for the quarter ended September 30, 2001. Japan contributed 6% for the quarter ended September 30, 2002. Our largest customer, top 5 and top 10 customers accounted for 8%, 25% and 39%, respectively, of our Global IT Services Revenue for the quarter ended September 30, 2002, as compared to 8%, 30% and 44% of our Global IT Services Revenue for the quarter ended September 30, 2001. 30 new clients were added in the quarter ended September 30, 2002, of which 7 customers are represented on the Fortune 1000 companies list. New customers added in current fiscal year contributed 6% of total Revenue for the quarter ended September 30, 2002. Customers with annual Revenue run rate of $1 million and above increased to 93 in the quarter ended September 30, 2002, up from 81 in the quarter ended September 30, 2001. Customers with annual Revenue run rate of $5 million and above increased to 27 in the quarter ended September 30, 2002, up from 24 in the quarter ended September 30, 2001. Offshore Revenue for the quarter was 48% of services Revenue, the same proportion as for the quarter ended September 30, 2001. Fixed Price projects were at 34% of the Revenue for the quarter, up from 27% for the quarter ended September 2001. Gross recruitment for the quarter was 1270 employees. We had 11,298 employees as of September 30, 2002, which represents an increase of 753 employees from June 30, 2002. ------------- (1) Excluding Revenues of Rs. 38 million for the six-months ended September 2002 from discontinued ISP business. Corresponding Revenue for the six-months ended September 30, 2001 was Rs. 310 million (2) Excluding loss (net of tax) of Rs. 394 million for the six-month period ended September 2002 pertaining to discontinued ISP business which includes loss from operations (net of tax) of Rs. 106 million (previous period - Rs.33 million) and loss on write off of assets and exit costs of Rs. 288 million of the discontinued business WIPRO SPECTRAMIND -- OUR IT ENABLED SERVICES BUSINESS After the acquisition of majority stake by Wipro, the results of Spectramind e-Services Pvt. Ltd. are now consolidated with that of Wipro Limited effective July 1, 2002, and it is being reported as a separate business segment -- IT Enabled Services (Wipro Spectramind). During the quarter, Wipro Spectramind signed Letter of Intent with 4 new customers. The number of active customers during the quarter was 8 as compared to 7 for the quarter ended June 30, 2002. The total number of employees was 3198 as on September 30, 2002, an increase of 460 employees from June 30, 2002. Wipro Spectramind recorded Revenue of Rs. 421 million with PBIT of Rs. 87 million. PBIT to Revenue was 21% for the quarter. WIPRO HEALTHCARE AND LIFE SCIENCE BUSINESS For the quarter ended September 30, 2002, Wipro Healthcare and Life Science business segment recorded Revenue of Rs. 248 million and achieved break-even. IT-related services to global clients accounted for 32% of Revenue and 21% of Revenue was contributed by Wipro Healthcare IT Ltd. (formerly GE Medical Systems IT Pvt. Ltd). The balance 47% of Revenue is from products and services relating to medical and diagnostic equipments in India. WIPRO INFOTECH -- OUR INDIA & ASIA PACIFIC IT SERVICES & PRODUCTS BUSINESS Wipro Infotech recorded Revenues of Rs 2.2 billion and Profit before Interest and Tax of Rs 118 Million for the quarter. For the six-month period ended September 30, 2002, Revenues were Rs 4.1 billion and Profit before Interest and Tax was Rs 205 Million. Services Revenue was 25% of the total Revenue for the quarter ended September 30, 2002. The value added services (excluding agency income and product component from system integration) grew by 27% year on year. In Software Services, our wins include an ERP implementation order from Riyadh Pharma, a leading pharmaceutical corporation in Saudi Arabia. In infrastructure management services, our wins include a contract from Dubai Municipality for providing IT operations management services. Colgate Palmolive India chose Wipro Infotech as its technology partner and signed a long-term services contract. During the quarter, Wipro Infotech won customer recognition as the IT brand of the year by PC Quest in its User's Choice survey. Wipro Infotech also received recognition from its principals -- Gold Partner Certification from Cisco Systems and Sunshine Award in the Diamond Category for South Asia from Sun Microsystems. Products Revenues grew 19% year on year, contributed by growth in the Enterprise server and storage products WIPRO CONSUMER CARE & LIGHTING Wipro Consumer Care and Lighting business recorded Revenue of Rs. 735 million with PBIT of Rs. 110 million contributing 7% of total Revenue and 5% of the Profit before Interest and Taxes for the quarter. PBIT to Revenue was 15% for the quarter. WIPRO LIMITED For the quarter ended September 30, 2002, the Return on Capital Employed in Wipro Technologies was 90%, Wipro Infotech was 33% and Consumer Care and Lighting was 66%. At the Company level, the Return on Capital Employed was 31%, lower due to inclusion of cash and cash equivalents of Rs. 14 billion in Capital Employed (46% of Capital Employed). FOR WIPRO LIMITED, PROFIT AFTER TAX FROM CONTINUING OPERATIONS COMPUTED IN ACCORDANCE WITH US GAAP FOR THE QUARTER ENDED SEPTEMBER 2002 WAS RS. 2.13 BILLION, AN INCREASE OF 3% OVER THE PROFITS FOR THE CORRESPONDING QUARTER ENDED SEPTEMBER 2001. THE NET DIFFERENCE BETWEEN PROFITS COMPUTED IN ACCORDANCE WITH INDIAN GAAP AND US GAAP IS PRIMARILY DUE TO DIFFERENT REVENUE RECOGNITION STANDARDS, AMORTIZATION OF INTANGIBLES ARISING FROM ACQUISITION AND ACCOUNTING FOR DEFERRED STOCK COMPENSATION EXPENSES. QUARTERLY CONFERENCE CALL Wipro will hold conference calls today at 11:45 AM Indian Standard Time (2:15 AM Eastern Time) and at 7:00 PM Indian Standard Time (9:30 AM Eastern) to discuss the company's performance for the quarter and answer questions sent to email ID: Lakshminarayana.lan@wipro.com. An audio recording of the management discussions and the question and answer session will be available online and will be accessible in the Investor Relations section of the company website at www.wipro.com shortly after the live broadcast. US GAAP FINANCIALS ON WEBSITE CONDENSED FINANCIAL STATEMENTS OF WIPRO LIMITED COMPUTED UNDER THE US GAAP ALONG WITH INDIVIDUAL BUSINESS SEGMENT REPORTS ARE AVAILABLE IN THE INVESTOR RELATIONS SECTION AT www.wipro.com. CONTACT FOR INVESTOR RELATION CONTACT FOR MEDIA & PRESS K R Lakshminarayana Vijay K Gupta Manager - Treasury Vice President -Corporate Phone: ++91-80-844-0079 Communications Fax: ++91-80-844-0051 ++91-80-844-0076 lakshminarayana.lan@wipro.com ++91-80-844-0350 vijayk.gupta@wipro.com FORWARD LOOKING AND CAUTIONARY STATEMENTS Certain statements in this release concerning our future growth prospects and our ability to successfully complete and integrate potential acquisitions are forward looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding our ability to integrate and manage acquired IT professionals, our ability to integrate acquired assets in a cost effective and timely manner, fluctuations in earnings, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases in India, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, , liability for damages on our service contracts, the success of the companies in which Wipro has made strategic investments, withdrawal of fiscal governmental incentives, political instability, legal restrictions on raising capital or acquiring companies outside India, unauthorized use of our intellectual property and general economic conditions affecting our industry. Additional risks that could affect our future operating results are more fully described in our filings with the United States Securities and Exchange Commission. These filings are available at www.sec.gov. Wipro may, from time to time, make additional written and oral forward looking statements, including statements contained in the company's filings with the Securities and Exchange Commission and our reports to shareholders. Wipro does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the company.
(IN RUPESS MILLIONS) ---------------------------------------------------------------------------------------------------------------- WIPRO LIMITED -- CONSOLIDATED AUDITED SEGMENT WISE BUSINESS PERFORMANCE FOR THE THREE MONTHS PERIOD ENDED SEPTEMBER 30, 2002 ---------------------------------------------------------------------------------------------------------------- INDIA & WIPRO GLOBAL IT IT ASIAPAC CONSUMER HEALTHCARE SERVICES & ENABLED IT SERVICES CARE & LIFE PRODUCTS SERVICES & PRODUCTS LIGHTING SCIENCES OTHERS ---------------------------------------------------------------------------------------------------------------- REVENUE External Sales & Services 6,791 421 2,156 735 248 270 Internal Sales & Services - - 46 - - (46) TOTAL 6,791 421 2,202 735 248 224 GROWTH IN REVENUES 19% 17% (5%) 82% % of total revenues 64% 4% 21% 7% 2% 2% PROFIT BEFORE INTEREST AND TAX (PBIT) 2,042 87 118 110 0 33 GROWTH IN PBIT 6% (9%) 0% - - % of total PBIT 85% 4% 5% 5% 0% 1% OPERATING MARGINS 30% 21% 5% 15% - - Interest income (net of interest expense Rs.6 mn) PROFIT BEFORE TAX Income Tax expense PROFIT BEFORE EXTRAORDINARY ITEMS GROWTH Discontinuance of ISP business (refer note 9) PROFIT BEFORE EQUITY IN EARNINGS / (LOSSES) OF AFFILIATES & MINORITY INTEREST Equity in earnings affiliates Minority interest PROFIT AFTER TAX GROWTH OTHER INFORMATION Net fixed assets 4,549 598 348 413 31 932 Trade receivables 4,560 336 2,226 149 252 142 Cash balances/Investments 1,072 109 83 176 31 12,933 Other assets 2,047 133 856 324 145 1,330 Goodwill - 3,561 - - 148 18 Current Liabilities (2,751) (232) (2,223) (424) (231) (400) Capital employed 9,477 4,505 1,290 638 376 14,955 % of capital employed 30% 14% 4% 2% 1% 49% Capital expenditure 374 147 33 2 4 4 Depreciation 242 42 42 16 3 19 Annualized Return on average capital employed from continuing business 90% - 33% 66% - -
(Table Continued)
(IN RUPESS MILLIONS) ------------------------------------------------------------------------------------------------------ WIPRO LIMITED -- CONSOLIDATED AUDITED SEGMENT WISE BUSINESS PERFORMANCE FOR THE THREE MONTHS PERIOD ENDED SEPTEMBER 30, 2002 ------------------------------------------------------------------------------------------------------ CONTINUING DISCONTINUED WIPRO OPERATIONS ISP BUSINESS LIMITED ------------------------------------------------------------------------------------------------------ REVENUE External Sales & Services 10,621 - 10,621 Internal Sales & Services - - 0 TOTAL 10,621 - 10,621 GROWTH IN REVENUES 23% - 21% % of total revenues - - PROFIT BEFORE INTEREST AND TAX (PBIT) 2,390 (35) 2,355 GROWTH IN PBIT 10% - 10% % of total PBIT - - 100% OPERATING MARGINS 23% - 22% Interest income (net of interest expense Rs.6 mn) 165 - 165 PROFIT BEFORE TAX 2,555 (35) 2,520 Income Tax expense (320) 13 (307) PROFIT BEFORE EXTRAORDINARY ITEMS 2,235 (22) 2,213 GROWTH 2.5% 2.3% Discontinuance of ISP business (refer note 9) - 17 17 PROFIT BEFORE EQUITY IN EARNINGS / (LOSSES) OF 2,235 (5) 2,230 AFFILIATES & MINORITY INTEREST Equity in earnings affiliates (5) (5) Minority interest (21) (21) PROFIT AFTER TAX 2,209 (5) 2,204 GROWTH 1% 2% OTHER INFORMATION Net fixed assets 6,871 34 6,905 Trade receivables 7,665 23 7,688 Cash balances/Investments 14,404 - 14,404 Other assets 4,835 4 4,839 Goodwill 3,727 - 3,727 Current Liabilities (6,261) (211) (6,472) Capital employed 31,241 150 31,091 % of capital employed - - 100% Capital expenditure - - 564 Depreciation - - 364 Annualized Return on average capital employed from continuing business - - 31%
1. The segment report of Wipro Limited and its consolidated subsidiaries and associates has been prepared in accordance with the Accounting Standard 17 "Segment Reporting" issued by the Institute of Chartered Accountants of India. 2. The Company has three geographic segments; India, USA and Rest of the World. Significant portion of the segment assets are in India. Revenue from geographic segments based on domicile of the customers is outlined below:
GEOGRAPHY RS. MN --------- ------ India 3,277 USA 4,739 Rest of the World 2,605 Total 10,621
3. For the purpose of reporting, business segments are considered as primary segments and geographic segments are considered as secondary segment. 4. In accordance with Accounting Standard 21 "Consolidated Financial Statements" issued by the Institute of Chartered Accountants of India, the consolidated financial statements of Wipro Limited include the financial statements of all subsidiaries which are more than 50% owned and controlled. 5. The company has a 49% equity interest in Wipro GE Medical Systems Limited (WGE), a joint venture with General Electric, USA. The joint venture agreement provides specific rights to the joint venture partners. The rights conferred to Wipro are primarily protective in nature. Therefore, in accordance with the guidance in Accounting Standard 27 "Financial Reporting of Investments in Joint Ventures" the investments in Wipro GE have been accounted for by equity method and not by proportionate consolidation method. 6. In accordance with the guidance provided in Accounting Standard 23 "Accounting for Investments in Associates in Consolidated Financial Statements" WeP Peripherals have been accounted for by equity method of accounting. 7. Acquisition of Spectramind In July 2002, the Company acquired controlling equity interest in Spectramind e Services Private Limited ("Spectramind"), a leading IT-enabled service provider in India providing remote processing services to large global corporations in the US, UK, Australia and other developed markets. The shares and warrants acquired, together with shares previously held by the Company, represent 89% of the outstanding shares of Spectramind. The aggregate purchase price for the acquisition, including the cost of acquisition of the shares previously held by the Company, was Rs. 4,177 Mn. In September 2002, the company acquired an additional 3% of the outstanding shares for Rs 170 Mn. The results of operations of Spectramind are consolidated in the Company's financial statements from July 1, 2002. The Company has also entered into a call and put option arrangement with the management team and employees of Spectramind to acquire the unvested options. The put and call option can be exercised, at the fair market value, during the six month period commencing from 190 days from the date of exercise of the options. The excess of consideration paid over the book value of assets acquired has been recognized as goodwill. The details of consideration paid, book value of assets acquired and goodwill arising from the acquisition is outlined below:
Rs. Mn ------ Cash and bank balances 161 Net current assets 693 Minority interest (68) Goodwill 3,561 ------ 4,347 ------
8. Acquisition of GE Medical Systems Information Technologies Limited (GEMSIT) In August 2002, Wipro Limited acquired 60% equity interest in GE Medical Systems Information Technologies Limited (GEMSIT), an India based company engaged in the development of health care related software, and the technology rights in the business of GEMSIT from GE group for a consideration of Rs.181 Mn. Wipro has also entered into an agreement to acquire the 40% equity interest held by Citadel Health Limited for a consideration of US$ 2 million. The transaction is subject to certain closing precedents and has not yet been consummated. The excess of consideration paid over the book value of assets acquired has been recognized as goodwill. The details of consideration paid, book value of assets acquired and goodwill arising from the acquisition is outlined below:
Rs. Mn ------ Cash and bank balances 35 Current assets 19 Minority interest (22) Goodwill 148 ------ 180 ------
9. The Company was engaged in the business of providing corporate ISP services. Based on a review of this business, the company decided to discontinue the existing infrastructure based ISP business, but continue with the managed network and remote management services. Managed network and remote management services are currently being offered as part of total IT solutions. In June 2002, the management formally approved a plan to discontinue the infrastructure based corporate ISP services. The costs associated with the discontinuance including asset impairment charges and other exit costs have been reflected as extraordinary expenses. The customers are being transitioned to an independent service provider. The consideration payable by the service provider to the Company is dependent on the occurrence of certain contingent events. The total consideration received is Rs. 25 Mn and is adjusted against the extraordinary loss arising out of the same. In addition deferred consideration is receivable based on revenue generated by transferred customers over one year period. Such consideration will be determined only at a future date and will be accounted on crystallization. 10. In the earnings release made by the Company on July 19, 2002 for the three months ended June 30, 2002, the Company had recorded its share of interest of Wipro GE based on the information provided by affiliate. Subsequently, Wipro has received revised information about the affiliate where the losses were higher than those previously reported by Rs. 380 Mn. This adjustment to record incremental losses of Rs. 186 Mn, being Wipro's share, has been recorded in the consolidated financial statements for six months period ended September 30, 2002.
------------------------------------------------------------------------------------------------------------------- WIPRO LIMITED -- CONSOLIDATED AUDITED SEGMENT WISE BUSINESS PERFORMANCE FOR THE SIX MONTHS PERIOD ENDED SEPTEMBER 30, 2002 ------------------------------------------------------------------------------------------------------------------- INDIA & WIPRO GLOBAL IT IT ASIAPAC CONSUMER HEALTHCARE SERVICES & ENABLED IT SERVICES CARE & & LIFE PRODUCTS SERVICES & PRODUCTS LIGHTING SCIENCES OTHERS ------------------------------------------------------------------------------------------------------------------- REVENUE External Sales & Services 13,073 421 4,018 1,465 409 499 Internal Sales & Services - - 91 - - (91) TOTAL 13,073 421 4,109 1,465 409 408 GROWTH IN REVENUES 20% 19% (5%) 38% % of total revenues 66% 2% 21% 7% 2% 2% PROFIT BEFORE INTEREST AND TAX (PBIT) 4,021 87 205 239 (13) 39 GROWTH IN PBIT 5% (2%) 16% - - % of total PBIT 88% 2% 4% 5% 0% 1% OPERATING MARGINS 31% 21% 5% 16% - - Interest income (net of interest expense Rs.14 mn) PROFIT BEFORE TAX Income Tax expense PROFIT BEFORE EXTRAORDINARY ITEMS GROWTH Discontinuance of ISP business (net of tax benefit of Rs.94 mn) (refer note 9) PROFIT BEFORE EQUITY IN EARNINGS / (LOSSES) OF AFFILIATES & MINORITY INTEREST Equity in earnings affiliates Minority interest PROFIT AFTER TAX Growth
(Table Continued)
(IN RUPESS MILLIONS) --------------------------------------------------------------------------------------------- WIPRO LIMITED -- CONSOLIDATED AUDITED SEGMENT WISE BUSINESS PERFORMANCE FOR THE SIX MONTHS PERIOD ENDED SEPTEMBER 30, 2002 --------------------------------------------------------------------------------------------- CONTINUING DISCONTINUED WIPRO OPERATIONS ISP BUSINESS LIMITED --------------------------------------------------------------------------------------------- REVENUE External Sales & Services 19,885 38 19,923 Internal Sales & Services - - 0 TOTAL 19,885 38 19,923 GROWTH IN REVENUES 21% - 19% % of total revenues PROFIT BEFORE INTEREST AND TAX (PBIT) 4,578 (168) 4,410 GROWTH IN PBIT 8% - 5% % of total PBIT OPERATING MARGINS 23% - 22% Interest income (net of interest expense Rs.14 mn) 307 - 307 PROFIT BEFORE TAX 4,885 (168) 4,717 Income Tax expense (611) 62 (549) PROFIT BEFORE EXTRAORDINARY ITEMS 4,274 (106) 4,168 GROWTH (1.4%) (3.2%) Discontinuance of ISP business (net of tax benefit of Rs.94 mn) (refer note 9) - (288) (288) PROFIT BEFORE EQUITY IN EARNINGS / (LOSSES) OF AFFILIATES & MINORITY INTEREST 4,274 (394) 3,880 Equity in earnings affiliates (211) (211) Minority interest (24) (24) PROFIT AFTER TAX 4,039 (394) 3,645 Growth (7%) (15%)
WIPRO LIMITED -------------------------------------------------------------------------------- CONSOLIDATED BALANCE SHEET
(Rs. In 000s) ----------------------------------------- AS OF SEPTEMBER 30, AS OF MARCH 31, ----------------------------------------- SCHEDULE 2002 2001 2002 ----------------------------------------------------------------------------------------------------- SOURCES OF FUNDS SHAREHOLDERS' FUNDS Share Capital 1 464,992 464,875 464,931 Share application money pending allotment (refer note 11) 6,516 - 2,399 Reserves and Surplus 2 29,937,420 22,021,541 25,460,163 ---------- ---------- ---------- 30,408,928 22,486,416 25,927,493 ---------- ---------- ---------- LOAN FUNDS Secured loans 3 510,115 216,457 254,872 Unsecured loans 4 61,197 53,358 60,563 MINORITY INTEREST 111,120 - 27,542 ---------- ---------- ---------- 682,432 269,815 342,977 ---------- ---------- ---------- TOTAL 31,091,360 22,756,231 26,270,470 ---------- ---------- ---------- APPLICATION OF FUNDS FIXED ASSETS Goodwill on consolidation -- refer note 1 3,727,397 - 12,670 Gross block 5 11,170,553 10,132,397 10,069,036 Less : Depreciation 5,624,541 4,623,287 4,770,280 ---------- ---------- ---------- Net Block 9,273,409 5,509,110 5,311,426 Capital work-in-progress and advances 1,358,835 1,633,275 1,164,327 ---------- ---------- ---------- 10,632,244 7,142,385 6,475,753 ---------- ---------- ---------- INVESTMENTS 6 7,503,315 336,174 4,680,822 DEFERRED TAX ASSETS 440,609 141,258 421,803 CURRENT ASSETS, LOANS AND ADVANCES Inventories 7 897,648 1,011,674 934,600 Sundry Debtors 8 7,687,792 5,700,121 6,546,160 Cash and Bank balances 9 5,028,701 4,221,825 3,031,909 Loans and advances 10 5,371,507 10,113,132 10,055,275 ---------- ---------- ---------- 18,985,648 21,046,752 20,567,944 ---------- ---------- ---------- CURRENT LIABILITIES AND PROVISIONS Liabilities 11 5,945,937 5,401,164 5,223,455 Provisions 12 525,576 509,931 653,156 ---------- ---------- ---------- 6,471,513 5,911,095 5,876,611 ---------- ---------- ---------- NET CURRENT ASSETS 12,514,135 15,135,657 14,691,333 ---------- ---------- ---------- Miscellaneous expenditure ( to the extent not written off or adjusted) 1,057 757 759 ---------- ---------- ---------- TOTAL 31,091,360 22,756,231 26,270,470 ---------- ---------- ---------- Significant accounting policies and notes to 19 accounts
As per our report For and on behalf of the Board of Directors attached FOR N.M. RAIJI & CO., Chartered Accountants J.M GANDHI AZIM HASHAM PREMJI N. VAGHUL B.C. PRABHAKAR Partner Chairman and Managing Director Director Director SURESH C. SENAPATY SATISH MENON Corporate Executive Vice Corporate Vice President President - Finance -- Legal & Company Secretary Mumbai, October 18, 2002 Bangalore, October 18, 2002
WIPRO LIMITED -------------------------------------------------------------------------------- CONSOLIDATED PROFIT AND LOSS ACCOUNT
(RS. IN 000S) ---------------------------------------------------- SCHEDULE SIX MONTHS ENDED SEPTEMBER 30, YEAR ENDED MARCH 31, ---------------------------------------------------- 2002 2001 2002 --------------------------------------------------------------------------------------------------------- INCOME Gross Sales and Services 19,922,992 16,789,723 35,032,098 LESS: Excise Duty 351,397 313,142 627,012 ---------- ---------- ---------- Net Sales and Services 19,571,595 16,476,581 34,405,086 ---------- ---------- ---------- Other Income 13 671,501 747,347 1,558,236 ---------- ---------- ---------- 20,243,096 17,223,928 35,963,322 ---------- ---------- ---------- EXPENDITURE Cost of goods sold 14 12,470,886 10,336,741 20,831,431 Selling, general and administrative expenses 15 3,040,998 2,238,819 5,519,512 Interest 16 13,962 14,923 29,697 ---------- ---------- ---------- 15,525,846 12,590,483 26,380,640 ---------- ---------- ---------- PROFIT BEFORE TAXATION: Continuing Operations 4,885,606 4,684,445 9,707,309 Discontinuing Operations (168,356) (51,000) (124,627) ---------- ---------- ---------- TOTAL 4,717,250 4,633,445 9,582,682 ---------- ---------- ---------- PROVISION FOR TAXATION: (refer note 8) Continuing Operations 610,812 345,746 773,492 Discontinuing Operations (61,871) (18,210) (44,492) ---------- ---------- ---------- TOTAL 548,941 327,536 729,000 ---------- ---------- ---------- PROFIT FOR THE PERIOD BEFORE EXTRAORDINARY ITEMS: Continuing Operations 4,274,794 4,338,699 8,933,817 Discontinuing Operations (106,485) (32,790) (80,135) ---------- ---------- ---------- TOTAL 4,168,309 4,305,909 8,853,682 ---------- ---------- ---------- Loss on discontinuance of ISP business-refer note 5 18 (383,144) - - Tax benefit on above 94,364 - - ---------- ---------- ---------- Net loss on discontinuance of ISP business (288,780) - - ---------- ---------- ---------- PROFIT FOR THE PERIOD BEFORE MINORITY INTEREST / EQUITY IN EARNINGS OF AFFILIATES: 3,879,529 4,305,909 8,853,682 ---------- ---------- ---------- Minority Interest (23,591) - 808 Equity in earnings / (losses) of affiliates (210,933) - - ---------- ---------- ---------- PROFIT FOR THE PERIOD 3,645,005 4,305,909 8,854,490 ---------- ---------- ---------- EARNINGS PER SHARE ( IN RS.) BASIC On profit for the period from continuing operations 18.49 18.78 38.65 On losses of discontinued ISP business (0.46) (0.14) (0.35) On extraordinary items (1.25) - - On equity in earnings of affiliates / minority interest (1.01) - - On profit for the period 15.77 18.64 38.30 DILUTED On profit for the period from continuing operations 18.46 18.76 38.59 On losses of discontinued ISP business (0.46) (0.14) (0.35) On extraordinary items (1.25) - - On equity in earnings of affiliates / minority interest (1.01) - - On profit for the period 15.74 18.62 38.24 NUMBER OF SHARES Basic 31,171,372 231,021,983 231,132,500 Diluted 31,526,775 231,327,985 231,534,876 Significant accounting policies and notes to accounts 19
As per our report attached For and on behalf of the Board of Directors FOR N.M. RAIJI & CO., Chartered Accountants J.M GANDHI AZIM HASHAM PREMJI N. VAGHUL B.C. PRABHAKAR Partner Chairman and Managing Director Director Director SURESH C. SENAPATY SATISH MENON Corporate Executive Vice Corporate Vice President President - Finance -- Legal & Company Secretary Mumbai, October 18, 2002 Bangalore, October 18, 2002
WIPRO LIMITED --------------------------------------------------------------------------------
(Rs. In 000s, except share numbers) -------------------------------------- AS OF SEPTEMBER 30, AS OF MARCH 31, ------------------------------------- 2002 2001 2002 ------------------------------------- SCHEDULE 1 SHARE CAPITAL AUTHORISED 375,000,000 (2002: 375,000,000; 2001: 375,000,000) Equity shares of Rs 2 each 750,000 750,000 750,000 2,500,000 (2002: 2,500,000; 2001: 2,500,000) 10.25% Redeemable Cumulative Preference Shares of Rs 100 ea 250,000 250,000 250,000 ------------------------------------- 1,000,000 1,000,000 1,000,000 ------------------------------------- ISSUED, SUBSCRIBED AND PAID-UP 232,496,246 (2002: 232,465,689; 2001: 232,437,689) equity shares of Rs 2 each 464,992 464,875 464,931 ------------------------------------- 464,992 464,875 464,931 =====================================
Notes: 1. Of the above equity shares: i) 226,905,825 equity shares (2002: 226,905,825; 2001: 226,905,825), have been allotted as fully paid bonus shares by capitalization of Share Premium of Rs. 32,639 and General Reserves of Rs 421,173. ii) 1,325,525 equity shares (2002: 1,325,525; 2001: 1,325,525) have been allotted as fully paid-up, pursuant to a scheme of amalgamation, without payment being received in cash. iii) 3,162,500 shares representing 3,162,500 American Depository Receipts issued during 2000-2001 pursuant to American Depository offering by the Company. iv) 177,396 (2002: 146,839; 2001:4,670) equity share issued pursuant to Employee Stock Option Plan. SCHEDULE 2 RESERVES AND SURPLUS
AS OF AS OF APRIL SEPTEMBER 1, 2002 ADDITIONS DEDUCTIONS 30, 2002 ---------- --------- ---------- ---------- CAPITAL RESERVES 9,500 - 9,500 9,500 9,500 9,500 - - 9,500 ---------- --------- ---------- ---------- CAPITAL REDEMPTION RESERVE 250,038 - - 250,038 250,038 250,038 250,038 - - 250,038 ---------- --------- ---------- ---------- SHARE PREMIUM 6,386,235 33,133 (a) - 6,419,368 5,920,208 435,675 6,355,883 5,920,208 466,027 - 6,386,235 ---------- --------- ---------- ---------- REVALUATION RESERVE - - - - 890,072 39,125 (b) 850,947 890,072 - 890,072 - ---------- --------- ---------- ---------- DEFERRED STOCK COMPENSATION 4,401 4,401 - - - - - - - - ---------- --------- ---------- ---------- INVESTMENT ALLOWANCE RESERVE - - - - 14,500 14,500 - 14,500 - 14,500 (c) - ---------- --------- ---------- ---------- PROFIT & LOSS ACCOUNT 3,645,005 3,645,005 4,305,909 4,305,909 ---------- --------- ---------- ---------- GENERAL RESERVE 18,814,390 794,718 (e) - 19,609,108 12,100,305 581,004 2,432,045 (d) 10,249,264 12,100,305 9,146,130 (c)(e) 2,432,045 18,814,390 ---------- --------- ---------- ---------- 25,460,163 4,477,257 29,937,420 19,184,623 5,322,588 2,485,670 22,021,541 19,184,623 9,612,157 3,336,617 25,460,163 ========== ========= ========== ==========
Corresponding figures for 2001 and 2002 are given below current year's figures a) Rs. 33,133 (2002: 35,414; 2001:5,062) pursuant to issue of shares under Employee Stock Option Plan Rs. Nil (2002:Rs. 430,613; 2001: Rs. 430,613) on account of amalgamation of Wipro Net Limited with Wipro Limited. b) Transfer to Profit and Loss account Rs. Nil (2002: Rs. 39,388; 2001: Rs. 26,101) and reduction on account of sale of revalued assets and other adjustments Rs. Nil (2002: Rs. Nil; 2001: Rs. 13,024). The net difference of Rs. 850,684 was adjusted against revaluation reserve as on March 31, 2002. c) Transfer to General Reserve Rs. Nil (2002: Rs. 14,500; 2001: Rs. 14,500) d) Deficit arising on account of amalgamation of Wipro Net Limited with Wipro Limited (refer note 5 of schedule 19). e) Additions to General Reserves includes:
September 30, 2002 March 31, 2002 September 30, 2001 ------------------ -------------- ------------------ Accumulated losses of subsidiaries as on March 31, 2001 (99,274) (99,274) Write bank of diminution in value of investment in subsidiaries 108,196 108,196 Benefits arising on employee stock incentive plans 55,646 55,646 Deferred tax assets (net) as of March 31, 2001 47,647 31,581 Reserves of Wipro Equity Reward Trust as at March 31, 2001 470,355 470,355 Transfer from investment allowance reserve 14,500 14,500 Transfer from profit and loss account 8,549,060 - Equity in earnings of affiliates as of March 31, 2002: --------------------------------------------- Wipro GE medicals systems Ltd. 771,849 Wipro ePeripherals Ltd. 22,869 ------- --------- ------- Total 794,718 9,146,130 581,004 ------- --------- -------
WIPRO LIMITED --------------------------------------------------------------------------------
(Rs. In 000s) ------------------------------------------- Note AS OF SEPTEMBER 30, AS OF MARCH 31, ------------------------------------------- SCHEDULE 3 SECURED LOANS Reference 2002 2001 2002 ------------------------------------------- FROM BANKS Cash credit facility a 460,240 85,683 204,997 EXTERNAL COMMERCIAL BORROWINGS b - 60,899 - FROM FINANCIAL INSTITUTIONS Asset Credit Scheme c 48,200 68,200 48,200 DEVELOPMENT LOAN FROM GOVERNMENT OF KARNATAKA d 1,675 1,675 1,675 ------------ --------- ---------- 510,115 216,457 254,872 ============ ========= ==========
NOTES: a. Secured by hypothecation of stock-in trade, book debts, stores and spares, and secured/to be secured by a second mortgage over certain immovable properties. b. Foreign currency loan secured by hypothecation of movable fixed assets in certain software development centers at Bangalore and specific plant and machinery of erstwhile Fluid Power unit. c. Secured by hypothecation of specific machinery / assets. d. Secured by a pari-passu second mortgage over immovable properties at Mysore and hypothecation of movable properties other than inventories, book debts and specific equipments referred to in Note a above.
------------------------------------------- AS OF SEPTEMBER 30, AS OF MARCH 31, ------------------------------------------- SCHEDULE 4 UNSECURED LOANS 2002 2001 2002 ------------------------------------------- FIXED DEPOSITS - 854 843 OTHER LOANS AND ADVANCES Interest free loan from Government 59,947 51,254 58,470 Loans from state financial institutions 1,250 1,250 1,250 ------------- --------- ---------- 61,197 53,358 60,563 ============= ========= ==========
WIPRO LIMITED -------------------------------------------------------------------------------- (Rs. In 000s)
SCHEDULE 5 FIXED ASSETS -------------------------------------------------------------------------------------------------------------------- Particulars GROSS BLOCK PROVISION FOR DEPRECIATION -------------------------------------------------------------------------------------------------------------------- AS OF Additions Deductions/ AS OF AS OF Depreciation Deductions/ APRIL 1, adjustments SEPT 30, APRIL 1, for the adjustments 2002 2002 2001 period ----------- ---------- ----------- ---------- ---------- ------------- ----------- Land 584,916 28,789 - 613,705 5,510 1,769 - Buildings 1,470,580 266,469 3,037 1,734,012 93,446 22,194 (24,084) Railway siding 12 - - 12 12 - - Plant and Machinery 6,299,405 927,696 262,305 6,964,796 3,869,116 784,577 126,967 Furniture fixture and equipment 1,280,868 88,692 10,405 1,359,155 601,525 114,324 (29) Vehicles 420,843 91,400 25,782 486,461 189,832 45,151 11,249 Technical Know-how 10,378 - - 10,378 9,949 214 - Patents and trademark 2,034 - - 2,034 890 135 - ---------- --------- -------- ---------- --------- ----------- ---------- Total 10,069,036 1,403,046 301,529 11,170,553 4,770,280 968,364 114,103 ---------- --------- -------- ---------- --------- ----------- ----------
SCHEDULE 5 FIXED ASSETS ------------------------------------------------------------------ Particulars NET BLOCK ------------------------------------------------------------------ AS OF AS OF AS OF SEPT 30, SEPT 30, MARCH 31, 2002 2002 2002 --------- --------- ---------- Land 7,279 606,426 579,406 Buildings 139,724 1,594,288 1,377,134 Railway siding 12 - - Plant and Machinery 4,526,726 2,438,070 2,430,289 Furniture fixture and equipment 715,878 643,277 679,343 Vehicles 223,734 262,727 231,011 Technical Know-how 10,163 215 429 Patents and trademark 1,025 1,009 1,144 --------- ---------- --------- Total 5,624,541 5,546,012 5,298,756 --------- ---------- ---------
a. Land includes leasehold land Rs 9,978 (2002: 9,978; 2001 : Rs. 9,978) b. Buildings: i) Includes shares worth Rs 2 (2002: Rs.2 ; 2001: Rs. 2) ii) Includes leasehold land / property Rs 4,241 (2002: Rs. 4,241; 2001: Rs. 4,241) iii) Is net of depreciation during construction period.
WIPRO LIMITED -------------------------------------------------------------------------------------------------------------- SCHEDULE 6 INVESTMENTS (RS. IN 000S EXCEPT SHARE NUMBERS AND FACE AS OF VALUE) AS OF SEPTEMBER 30, MARCH 31, --------- -------- ----------- ---------- ----------- ALL SHARES ARE FULLY PAID UP UNLESS OTHERWISE NUMBER FACE 2002 2001 2002 STATED VALUE --------- -------- ----------- ---------- ----------- INVESTMENTS - LONG TERM (AT COST) INVESTMENT IN AFFILIATES Wipro GE Medical Systems Ltd # 559,671 - - WeP Peripherals Ltd 118,715 - - ---------- --------- ---------- 678,386 - - ---------- --------- ---------- INVESTMENTS IN EQUITY SHARES OF OTHER COMPANIES QUOTED TRADE INVESTMENTS Dynamatic Technologies Ltd 3,732 Rs 10 66 66 66 Rasoi Ltd 112 Rs 10 2 2 2 Mannesmann Rexorth (India) Ltd 50 Rs 10 1 1 1 Oswal Agro Mills Ltd 80 Rs 10 3 3 3 DCM Ltd (sold during the year) 31 Rs 10 - 1 1 DCM Shriram Industries Ltd 55 Rs 10 2 2 2 DCM Shriram Consolidated Ltd 41 Rs 10 2 2 2 Shriram Industrial Enterprises Ltd 74 Rs 10 1 1 1 Zensar Technologies Ltd. (sold during the year) 75 Rs 10 - 2 2 The National Radio and Electronics Co. Ltd. (sold during the year) 100 Rs 10 - 2 2 Hindustan Lever Ltd. 6,240 Rs 10 17 17 17 Hindustan Motors Ltd. 200 Rs 10 4 4 4 Tata Engineering and Locomotive Co. Ltd. 80 Rs 10 2 2 2 Ashok Leyland Ltd. (sold during the year) 50 Rs 10 - 1 1 Ambalal Sarabhai Enterprises Ltd. 42 Rs 10 1 1 1 Nestle India Ltd. (sold during the year) 300 Rs 10 - 4 4 Surya Roshni Ltd. (sold during the year) 87 Rs 10 - 4 4 Cadbury India Ltd. (sold during the year) 80 Rs 10 - 10 10 Hindustan Dor Oliver Ltd. (sold during the year) 50 Rs 10 - 5 5 KSB Pumps Ltd. 50 Rs 10 11 11 11 Britannia Industries Ltd. 150 Rs 10 24 24 24 Exide Industries Ltd. 200 Rs 10 15 15 15 Amrit Banaspati Co. Ltd. 100 Rs 10 8 8 8 Procter & Gamble India Ltd. 50 Rs 10 13 13 13 Crompton Greaves Ltd. 50 Rs 10 7 7 7 Phillips (India) Ltd. 100 Rs 10 13 13 13 Velvette International Pharma Products Ltd. 100 Rs 10 2 2 2 International Best Foods Ltd. 240 Rs 10 12 12 12 Dynamatic Technologies Ltd 100 Rs 10 1 1 1 HDFC Bank Ltd 100 Rs 10 1 1 1 ---------- --------- ---------- 208 237 237 ---------- --------- ---------- - UNQUOTED Wipro GE Medical Systems Ltd. # 4,900,000 Rs 10 - 49,000 49,000 Wipro Fluid Power Ltd 1,863,520 Rs. 10 - 18,635 Spectramind eServices Pvt. Ltd. 6,221,741 Rs 10 - - 144,299 WeP Peripherals Limited 5,460,000 Rs 10 - 54,600 54,600 All Seasons Foods Ltd. 100 Rs. 10 2 2 2 Sylantro 1,00,000 US$0.1 484 479 489 ---------- --------- ---------- 486 122,716 248,390 ---------- --------- ---------- INVESTMENTS IN PREFERENCE SHARES / DEBENTURES OF OTHER COMPANIES UNQUOTED Convertible preference shares in Wipro Fluid Power Ltd. 543,300 Rs. 100 - 54,330 - 12.5% unsecured convertible debentures of Wipro ePeripherals Ltd. 4,00,000 Rs. 100 - 40,000 40,000 Convertible preference shares in Spectramind eServices pvt. Ltd. 28,760,140 Rs. 10 - - 215,701 ---------- --------- ---------- - 94,330 255,701 ---------- --------- ---------- OTHER INVESTMENTS (UNQUOTED) Redeemable floating rate bonds of State Bank of 2,500 Rs 1,000 2,500 2,500 2,500 India Indira Vikas Patra 47,952 47,952 47,952 National Saving Certificates (held in custody 8 by Andhra Pradesh Govt.) Bonds of GE Capital Services India - 68,439 - ---------- --------- ---------- 50,460 118,891 50,452 ---------- --------- ---------- INVESTMENTS -- SHORT TERM: IN MONEY MARKET MUTUAL FUNDS Alliance Capital Mutual Fund (262,558 units redeemed during the period) 18,192,503 261,590 - 265,910 Pioneer ITI Mutual Fund (156,089 units redeemed during the period) 350,682 511,580 - 452,168 Prudential ICICI Mutual Fund (88,972,087 units - 924,966 redeemed during the period) 112,983,628 1,377,660 HDFC Mutual Fund (70,656,612 units redeemed during the period) 140,746,315 1,574,825 - 521,910 Standard Chartered Mutual Fund (31,336,790 - units redeemed during the period) 57,510,863 647,630 230,320 Reliance Mutual Fund (53,665,259 units redeemed during the period) 47,552,497 675,740 - 505,064 Zurich India Mutual Fund (89,079,559 units redeemed during the period) 89,088,292 1,012,500 - 400,499 Templeton India Mutual Fund 15,246,412 221,570 - 98,842 Cholamandalam Mutual Fund (7,717,377 units redeemed during the period) - - 147,389 Kotak Mutual Fund (29,129,190 units redeemed during the period) 12,401,666 145,350 - 225,154 Birla Mutual Fund (35,080,267 units redeemed during the period) 21,863,248 345,330 - 353,820 ---------- --------- ---------- 6,773,775 - 4,126,042 ---------- --------- ---------- Total 7,503,315 336,174 4,680,822 ========== ========= ==========
NOTES: # Equity investments in this company carry certain restrictions on transfer of shares that are normally provided for in joint venture / venture funding Agreement.
WIPRO LIMITED ------------------------------------------------------------------------------------------------------------------ (RS. IN 000S) --------------------------------------------- AS OF SEPTEMBER 30, AS OF MARCH 31, --------------------------------------------- 2002 2001 2002 ------------- -------------- ---------------- SCHEDULE 7 INVENTORIES Stores and Spares 34,485 41,955 31,425 Raw Materials 356,960 396,767 453,018 Stock-in-process 137,569 103,937 84,722 Finished goods 368,634 469,015 365,435 ------------ ------------ ------------- 897,648 1,011,674 934,600 ============ ============ ============= Basis of stock valuation: Raw materials, stock-in-process and stores and spares at or below cost. Finished products at cost or net realisable value, whichever is lower. SCHEDULE 8 SUNDRY DEBTORS (UNSECURED) Over Six Months Considered good 669,742 632,516 686,166 Considered doubtful 570,298 428,743 506,630 ------------ ------------ ------------- 1,240,040 1,061,259 1,192,796 ------------ ------------ ------------- OTHERS Considered good 7,018,050 5,067,605 5,859,994 Considered doubtful 375 100,463 5,737 ------------ ------------ ------------- 7,018,425 5,168,068 5,865,731 ------------ ------------ ------------- Less: Provision for doubtful debts 570,673 529,206 512,367 ------------ ------------ ------------- 7,687,792 5,700,121 6,546,160 ============ ============ ============= SCHEDULE 9 CASH AND BANK BALANCES CASH AND CHEQUES ON HAND 234,147 300,470 299,481 BALANCES WITH SCHEDULED BANKS On Current account 926,751 776,988 588,229 In Deposit account 1,142,806 1,388,678 100,295 BALANCES WITH OTHER BANKS IN CURRENT ACCOUNT Midland Bank, U K 105,908 32,632 146,146 Wells Fargo, U S A 282,563 86,894 1,081,773 Nations Bank - 97,627 Deutsche Bank - 487,942 Societe General 145,140 260,591 198,324 Bank of America 52,785 51,107 27,142 Standard Chartered Bank 339 - - Shanghai C&S Bank 760 - - Bank of Scotland 145,140 Danske Bank 299,569 - - National City Bank 628,940 - - Southtrust Bank 512,538 Suntrust Bank 483,800 Hongkong & Shanghai Bank 6,306 Bank of Tokyo 61,184 First Chicago - 262,649 976 Citibank - 535,920 1,949 FCC National Bank - 263,701 976 Chase Manhattan - 262,170 1,025 Great Western Bank 25 25 24 ------------ ------------ ------------- 5,028,701 4,221,825 3,031,909 ============ ============ ============= Maximum balances during the year Inkom Bank, Russia - Midland Bank, U K 387,177 Wells Fargo, U S A 986,037 Nations Bank 97,627 Deutsche Bank 487,942 Societe General 460,378 Bank of America 36,958 First Chicago 390,806 Citibank 875,432 FCC National Bank 391,739 Chase Manhattan 421,815 Great Western Bank 24
WIPRO LIMITED ------------------------------------------------------------------------------------------------------------------ (RS. IN 000S) --------------------------------------------- AS OF SEPTEMBER 30, AS OF MARCH 31, --------------------------------------------- 2002 2001 2002 ------------- -------------- ---------------- SCHEDULE 10 LOANS AND ADVANCES (Unsecured, considered good unless otherwise stated) Advances recoverable in cash or in kind or for value to be received Considered good 1,202,359 1,407,178 949,297 Considered doubtful 70,596 126,395 71,451 ------------ ------------ ------------- 1,272,955 1,533,573 1,020,748 ------------ ------------ ------------- Less: Provision for doubtful advances 70,596 126,395 71,451 ------------ ------------ ------------- 1,202,359 1,407,178 949,297 ------------ ------------ ------------- Certificate of deposits with foreign banks 1,317,032 4,684,076 5,287,219 Inter Corporate Deposits: GE Capital Services India 570,540 1,550,313 819,891 Citicorp Financial services Limited 35,335 - - ICICI Limited - 1,379,100 1,245,200 ------------ ------------ ------------- 605,875 2,929,413 2,065,091 ------------ ------------ ------------- Other Deposits 600,099 551,791 549,089 Advance income-tax (net of provision) 505,685 292,186 243,485 Balances with excise and customs 8,207 12,699 38,821 Unbilled Services 1,132,250 235,789 922,273 ------------ ------------ ------------- 5,371,507 10,113,132 10,055,275 ============ ============ =============
Note: a) Other Deposits include Rs 25,000 (2002 :Rs. 25,000; 2001: 25,000) security deposits for premises with a firm in which a director is Interested SCHEDULE 11 LIABILITIES Sundry Creditors 2,229,974 2,181,748 2,268,027 Unclaimed dividends 1,588 1,674 1,588 Advances from customers 795,051 902,032 870,030 Other liabilities 2,658,735 2,315,241 2,083,509 Unbilled Services 260,307 - - Interest accrued but not due on loans 282 469 301 ------------ ------------ ------------- 5,945,937 5,401,164 5,223,455 ============ ============ ============= SCHEDULE 12 PROVISIONS Employee retirement benefits 525,576 509,931 408,990 Proposed dividend - - 232,466 Tax on proposed dividend - - - Other Provision - - 11,700 ------------ ------------ ------------- 525,576 509,931 653,156 ============ ============ =============
YEAR ENDED SIX MONTHS ENDED SEPTEMBER 30, MARCH 31, ---------------------------------------------- SCHEDULE 13 OTHER INCOME 2002 2001 2002 --------------- -------------- --------------- Dividend from mutual funds 20,737 - 279,549 Dividend from companies - 3,779 5,096 Interest on debt instruments 126,262 460,863 753,287 Rental Income 12,772 11,285 19,227 Profit on Sale of Investments 174,102 - - Profit on disposal of fixed assets 2,819 14,869 36,251 Difference in exchange 243,035 138,794 214,187 Brand fees 26,508 26,508 53,016 Royalty 5,000 - 39,344 Provision no longer required written back 21,494 47,672 115,354 Miscellaneous Income 38,772 43,577 42,925 ------------ ---------- ----------- 671,501 747,347 1,558,236 ============ ========== ===========
Notes: Tax deducted at source Rs. 49,282 (2002 : Rs. 130,897; 2001: 47,044 )
WIPRO LIMITED -------------------------------------------------------------------------------------------------------------- (Rs. In 000s) SIX MONTHS ENDED SEPTEMBER 30, YEAR ENDED MARCH 31, ---------------------------------------------- SCHEDULE 14 COST OF GOODS SOLD 2002 2001 2002 --------------- ------------------------------ Raw materials, Finished and Process Stocks (refer - schedule 17) 3,867,118 3,679,771 7,952,910 Stores & Spares 83,179 195,258 184,958 Power and Fuel 171,533 173,437 322,164 Salaries, wages and bonus 2,099,490 1,945,090 3,503,398 Contribution to provident and other funds 82,572 70,852 133,716 Gratuity and pension 95,113 63,778 120,741 Workmen and Staff welfare 59,930 75,807 139,388 Insurance 11,449 10,609 16,797 Repairs to factory buildings 4,798 8,083 10,790 Repairs to Plant & Machinery 180,954 6,162 116,510 Rent 98,956 120,540 202,116 Rates & Taxes 16,463 7,075 11,933 Packing 44,216 32,445 15,436 Travelling and allowances 3,906,935 2,684,222 5,501,529 Depreciation 504,501 495,566 1,108,743 Technical fees 80,991 27,414 136,439 Miscellaneous 1,233,057 751,966 1,430,131 Less: Capitalized (70,369) (11,334) (76,268) ----------- ----------- ----------- 12,470,886 10,336,741 20,831,431 ============ =========== =========== SCHEDULE 15 SELLING GENERAL AND ADMINISTRATIVE EXPENSES Salaries, wages and bonus 597,775 438,492 1,059,461 Contribution to provident and other funds 19,188 12,718 34,934 Gratuity and pension 27,989 13,055 33,510 Workmen and Staff welfare 56,800 43,426 129,173 Insurance 2,979 1,472 6,108 Repairs to buildings 6,469 274 3,781 Rent 70,904 48,164 121,202 Rates and taxes 36,462 21,456 21,764 Carriage and freight 53,653 87,120 214,698 Commission on sales 25,336 (40,881) 489,688 Auditors' remuneration and expenses Audit fees 1,669 1,506 3,522 For certification including tax audit - - 969 Reimbursement of expenses 122 234 859 Advertisement and sales promotion 184,382 156,509 316,252 Loss on sale of fixed assets 2,392 742 10,648 Directors' fees 40 742 800 Depreciation 189,083 164,173 319,495 Travelling and allowances 1,113,188 699,399 1,577,051 Communication 131,958 90,180 112,765 Provision/write off of bad debts 102,120 204,658 265,224 Diminution in value of investments (mutual fund units) - - 163,147 Miscellaneous 418,489 295,380 634,461 ----------- ----------- ----------- 3,040,998 2,238,819 5,519,512 ============ =========== ===========
WIPRO LIMITED -------------------------------------------------------------------------------------------------------------- (Rs. In 000s) SIX MONTHS ENDED SEPTEMBER 30, YEAR ENDED MARCH 31, ---------------------------------------------- SCHEDULE 16 INTEREST 2002 2001 2002 --------------- ------------------------------ On fixed loans 3,425 5,030 9,124 Other 10,537 9,893 20,573 ----------- ----------- ----------- 13,962 14,923 29,697 =========== =========== =========== SCHEDULE 17 RAW MATERIALS, FINISHED AND PROCESS STOCKS CONSUMPTION OF RAW MATERIALS AND BOUGHT OUT COMPONENTS Opening stocks 439,930 499,536 499,536 Add: Purchases 2,154,470 1,571,462 3,720,523 Less: Transfer on sale of undertaking - - 46,496 Less: Closing stocks 356,960 396,767 439,930 ----------- ----------- ----------- 2,237,440 1,674,231 3,733,633 ----------- ----------- ----------- PURCHASE OF FINISHED PRODUCTS FOR SALE 1,685,724 1,970,187 4,206,410 ----------- ----------- ----------- (INCREASE)/DECREASE IN FINISHED AND PROCESS STOCKS Opening stock : In process 84,722 121,190 121,190 : Finished products 365,435 487,115 487,115 Less: Transfer on sale of undertaking : In Process - 81,002 : Finished Products - 64,279 Less: Closing stocks : In process 137,569 103,937 84,722 : Finished products 368,634 469,015 365,435 ----------- ----------- ----------- (56,046) 35,353 12,867 ----------- ----------- ----------- 3,867,118 3,679,771 7,952,910 =========== =========== =========== SCHEDULE 18 NON - RECURRING / EXTRAORDINARY ITEMS Loss of discontinued ISP business 383,144 ----------- ----------- ----------- 383,144 =========== =========== ===========
WIPRO LIMITED ------------------------------------------------------------------------------- SCHEDULE --19 SIGNIFICANT ACCOUNTING POLICIES ACCOUNTING CONVENTION The preparation of consolidated financial statements in conformity with Indian generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and disclosure of contingent assets and liabilities. Actual results could differ from these estimates. Basis of preparation of financial statements - The accompanying consolidated financial statements have been prepared in accordance with Indian generally accepted accounting principles. Principles of consolidation - The consolidated financial statements include the financial statements of Wipro and all of its subsidiaries, which are more than 50% owned and controlled and its affiliates where the Company holds more than 20% control. All material inter-company accounts and transactions are eliminated on consolidation. The company accounts for investments by the equity method where its investment in the voting stock gives it the ability to exercise significant influence over the investee. REVENUE RECOGNITION o Sales include applicable sales tax unless separately charged, export incentives, and are net of discounts. o Sales are recognized on despatch, except in the following cases: - Consignment sales are recognized on receipt of statement of account from the agent - Sales, which are subject to detailed acceptance tests, revenue is reckoned based on milestones for billing, as provided in the contracts - Revenue from software development services includes revenue from time and material and fixed price contracts. Revenue from time and material contracts are recognized as related services are performed. With reference to fixed price contracts is recognized in accordance with percentage of completion method of accounting o Export incentives are accounted on accrual basis and include estimated realizable values/benefits from special import licenses and Advance licenses. o Agency commission is accrued on shipment of consignment by principal. o Maintenance revenue is considered on acceptance of the contract and is accrued over the period of the contract. o Other income is recognized on accrual basis. FIXED ASSETS AND DEPRECIATION Fixed assets were revalued in March 1997. In January 2002 the revaluation reserves were reversed against the carrying value of fixed assets. Consequently, fixed assets are now stated at historical cost less depreciation. Interest on borrowed money allocated to and utilized for fixed assets, pertaining to the period up to the date of capitalization and other revenue expenditure incurred on new projects is capitalized. Assets acquired on hire purchase are capitalized at the gross value and interest thereon is charged to Profit and Loss account. Renewals and replacement are either capitalized or charged to revenue as appropriate, depending upon their nature and long-term utility. In respect of leased assets, lease rentals payable during the year is charged to Profit and Loss account. Depreciation is provided on straight line method at rates specified in Schedule XIV to the Companies Act, 1956, except on computers, furniture and fixture, office equipment, electrical installations (other than those at factories) and vehicles for which commercial rates are applied. Technical know-how is amortized over six years. In Wipro Inc, Enthink Inc and Wipro Japan KK depreciation is provided on Written Down Value method. INVESTMENTS Long term Investments are stated at cost and short term investments are valued at lower of cost and net realizable value. Diminution in value is provided for where the management is of the opinion that the diminution is of permanent nature. INVENTORIES Finished goods are valued at cost or net realizable value, whichever is lower. Other inventories are valued at cost less provision for obsolescence. Indigenously developed software products are valued at cost, which reflects their remaining economic life. Small value tools and consumables are charged to consumption on purchase. Cost is computed on weighted average basis. PROVISION FOR RETIREMENT BENEFITS For employees covered under group gratuity scheme of LIC, gratuity charged to Profit and Loss account is on the basis of premium demanded by LIC. Provision for gratuity (for certain category of employees) and leave benefit for employee's is determined as per actuarial valuation at the year end. Defined contributions for provident fund and pension are charged to the Profit and Loss account based on contributions made in terms of applicable schemes, after netting off the amounts rendered surplus on account of employees separated from the Company. WIPRO LIMITED ------------------------------------------------------------------------------- DEFERRED TAX Tax expenses charged to Profit and Loss account is after considering deferred tax impact for the timing difference between accounting income and tax income. FOREIGN CURRENCY TRANSACTIONS Foreign currency transactions are recorded at the spot rate at the beginning of the concerned month. Year end balances of foreign currency assets and liabilities are restated at the closing rate/forward contract rate, as applicable. Resultant differences in respect of liabilities relating to acquisition of fixed assets are capitalized. Other differences on restatement or payment are adjusted to revenue account. Forward premium in respect of forward exchange contracts are recognized over the life of the contract, except that premium relating to foreign currency loans for the acquisition of fixed assets are capitalized RESEARCH AND DEVELOPMENT Revenue expenditure on research and development is charged to Profit and Loss account and capital expenditure is shown as addition to fixed assets. NOTES TO ACCOUNTS For preparation of interim financial statements, the same policies, which have been followed in the most recent annual financial statements, have been followed. 1. Goodwill arising on account of acquisition of subsidiaries and affiliates is not being amortized. Goodwill in the balance sheet represents goodwill arising on acquisition of the following:
(Rs. In 000s) ---------------------------------------------------------------------------- Wipro Fluid Power Limited 18,271 Spectramind e Services Private Limited 3,560,900 GE Medical Systems Information Technologies Limited 148,226 ----------- 3,727,397 ----------------------------------------------------------------------------
2. Acquisition of Spectramind In July 2002, the Company acquired controlling equity interest in Spectramind e Services Private Limited ("Spectramind"), a leading IT-enabled service provider in India providing remote processing services to large global corporations in the US, UK, Australia and other developed markets. The shares and warrants acquired, together with shares previously held by the Company, represent 89% of the outstanding shares of Spectramind. The aggregate purchase price for the acquisition, including the cost of acquisition of the shares previously held by the Company, was Rs. 4,176,552. In September 2002, the company acquired an additional 3% of the outstanding shares for Rs 169,638. The results of operations of Spectramind are consolidated in the Company's financial statements from July 1, 2002. The Company has also entered into a call and put option arrangement with the management team and employees of Spectramind to acquire the unvested options. The put and call option can be exercised, at the fair market value, during the six month period commencing from 190 days from the date of exercise of the options. The excess of consideration paid over the book value of assets acquired has been recognized as goodwill. The details of consideration paid, book value of assets acquired and goodwill arising from the acquisition is outlined below:
(Rs. In 000s) ---------------------------------------------------------------------------- Cash and bank balances 160,615 Net current assets 692,961 Minority interest (68,286) Goodwill 3,560,900 -------------- 4,346,190 ----------------------------------------------------------------------------
3. Acquisition of GE Medical Systems Information Technologies Limited (GEMSIT) In August 2002, Wipro Limited acquired 60% equity interest in GE Medical Systems Information Technologies Limited (GEMSIT), an India based company engaged in the development of health care related software, and the technology rights in the business of GEMSIT from GE group for a consideration of Rs. 180,776. Wipro has also entered into an agreement to acquire the 40% equity interest held by Citadel Health Limited for a consideration of US$ 2 million. The transaction is subject to certain closing precedents and has not yet been consummated. The excess of consideration paid over the book value of assets acquired has been recognized as goodwill. The details of consideration paid, book value of assets acquired and goodwill arising from the acquisition is outlined below:
(Rs. In 000s) ---------------------------------------------------------------------------- Cash and bank balances 35,184 Current assets 19,066 Minority interest (21,700) Goodwill 148,226 -------------- 180,776 ----------------------------------------------------------------------------
WIPRO LIMITED ------------------------------------------------------------------------------- 4. The company has a 49% equity interest in Wipro GE Medical Systems Limited (WGE), a joint venture with General Electric, USA. The joint venture agreement provides specific rights to the joint venture partners. The rights conferred to Wipro are primarily protective in nature. Therefore, in accordance with the guidance in Accounting Standard 27 "Financial Reporting of Investments in Joint Ventures" the investments in Wipro GE have been accounted for by equity method and not by proportionate consolidation method. Investments in Wipro e Peripherals have been accounted for by equity method. 5. The Company was engaged in the business of providing corporate ISP services. Based on a review of this business, the company decided to discontinue the existing infrastructure based ISP business, but continue with the managed network and remote management services. Managed network and remote management services are currently being offered as part of total IT solutions. In June 2002, the management formally approved a plan to discontinue the infrastructure based corporate ISP services. The costs associated with the discontinuance including asset impairment charges and other exit costs have been reflected as extraordinary expenses. The customers are being transitioned to an independent service provider. The consideration payable by the service provider to the Company is dependent on the occurrence of certain contingent events. The total consideration received is Rs. 25 Mn and is adjusted against the extraordinary loss arising out of the same. In addition deferred consideration is receivable based on revenue generated by transferred customers over one year period. Such consideration will be determined only at a future date and will be accounted on crystallization. 6. During fiscal 2002, the company acquired 1,791,385 shares, representing 8% of the equity capital of Wipro Net Limited (WNL). Consequent to this investment, WNL has become a fully owned subsidiary of the Company. The board of directors of both the companies decided to amalgamate WNL into the company with effect from April 2001. Accordingly, the Karnataka High Court approved the scheme of amalgamation. The scheme of amalgamation has been given effect to in the accounts of the Company for the year ended March 31, 2002, on the pooling of interest method. The share premium of WNL is credit to Wipro Limited. The deficit of Rs. 2,432,045 arising on amalgamation as detailed below was transferred to General Reserve:
(Rs. In 000s) ------------------------------------------------- -------- ---------------- Fixed Assets 433,507 Net Current Assets 71,753 Less: Loans 90,000 Net Tangible assets as of March 31, 2001 415,260 Less: Investments in WNL by the Company 2,416,692 Less: Share premium 430,613 --------------- Deficit transferred to General Reserve 2,432,045 -------------------------------------------------- -------- --------------- 7. Deferred tax comprise of: (Rs. In 000s) ------------------------------------------------- -------- ---------------- Deferred tax assets: Allowance for doubtful debts 81,037 Property plant and equipment 97,867 Employee stock incentive plan 61,695 Accrued expenses 43,877 Business losses carried forward 156,133 --------------- 440,609 ----------------------------------------------------------- ---------------
8. Provision for taxation comprises of following: (i) Rs. 215,098 (2002: Rs. 388,837; 2001: Rs. 108,861) in respect of foreign taxes, net of deferred tax of Rs. Nil (2002: Rs. 53,967; 2001: Rs. 53,967) and write back of provision of Rs. Nil (2002: 87,189; 2001: Rs. 35,307) in respect of earlier year (ii) Rs. 237,979 (2002: 337,163; 2001: Rs. 217,175) in respect of Indian Income Tax, net of tax benefit from discontinued business of Rs. 156,235, net of deferred tax expense of Rs. 87,189 (2002: Rs. 236,120; 2001: Rs. Nil) and write back of provision of Rs.64,000 (2002: Rs. 19,921; 2001: Rs. 34,000) in respect of earlier years. (iii) Rs.1,500 (2002: Rs. 3,000; 2001: Rs. 1,500) in respect of Wealth Tax. WIPRO LIMITED -------------------------------------------------------------------------------- 9. The details of subsidiaries and affiliates are as follows -
---------------------------------------- ---------------------------- ------------------- A) NAME OF THE SUBSIDIARY COUNTRY OF INCORPORATION % HOLDING Wipro Fluid Power Limited India 98% Wipro Inc USA 100% Enthink Inc USA - * Wipro Japan KK Japan 100% Wipro Prosper Limited India 100% Wipro Trademarks holding Limited India 100% Wipro Welfare Limited India 100% Wipro Healthcare IT Limited India 60% Spectramind eServices Limited India 92% b) Wipro Equity Reward Trust India Fully controlled trust C) NAME OF THE AFFILIATE Wipro GE Medical Systems Limited India 49% WeP Peripherals Limited India 39.64% ---------------------------------------- ---------------------------- ------------------ * Fully owned by Wipro Inc.
10. Diluted EPS is calculated based on treasury stock method for ESOP outstanding. 11. Amount received from employees on exercise of stock option, pending allotment of shares is shown as share application money pending allotment. 12. Corresponding figures for previous periods presented have been regrouped, where necessary, to confirm to this period classification. Current period figures are not comparable with the previous period figures to the extent of WeP Peripherals Limited and Wipro GE Medical Systems Limited which are consolidated as per Accounting Standard 23 in the current period WIPRO LIMITED -------------------------------------------------------------------------------- CASH FLOW STATEMENT
(Rs. In 000s) --------------------------------- ----------------- SIX MONTHS ENDED SEPTEMBER 30, YEAR ENDED MARCH 31, --------------------------------------------------- 2002 2001 2002 ----------------- --------------- ----------------- CASH FLOWS FROM OPERATING ACTIVITIES: Profit before tax from continuing operations 4,651,082 4,633,445 9,707,309 Adjustments to reconcile Net profit before tax and non recurring items to net cash provided by operating activities: Depreciation and amortization 655,577 660,434 1,378,945 Foreign currency translation gains (243,035) (167,153) (119,637) Loss of discontinued operations - (124,627) Minority interest 23,591 - - Equity in earnings of affiliates 259,933 - - Retirement benefits provision 44,291 105,030 (6,413) Others - (12,676) Interest on borrowings 13,962 14,923 28,941 Dividend / interest (321,101) (460,569) (873,941) Loss / (Gain) on sale of property, plant and (2,819) (14,869) (25,603) equipment Operating cash flow before changes in working capital 5,081,481 4,771,241 9,952,298 Trade and other receivable (691,259) 546,689 (236,983) Loans and advances (371,871) (181,079) (745,340) Inventories (other than stock-in-trade land) 36,952 140,857 217,929 Trade and other payables 156,964 551,240 519,631 ------------- ------------ ------------- Net cash provided by operations 4,212,267 5,828,948 9,707,535 Direct taxes paid (782,251) (593,580) (1,155,393) ------------- ------------ ------------- NET CASH PROVIDED BY CONTINUING OPERATIONS 3,430,016 5,235,368 8,552,142 ------------- ------------ ------------- NET CASH PROVIDED BY DISCONTINUING OPERATIONS 45,071 - - ------------- ------------ ------------- NET CASH PROVIDED BY OPERATIONS 3,475,087 5,235,368 8,552,142 ------------- ------------ ------------- CASH FLOWS FROM INVESTING ACTIVITIES: Expenditure on property, plant and equipment (including advances) (959,863) (1,399,155) (2,433,022) Proceeds from sale of property, plant and equipment 46,658 40,193 194,650 Purchase of investments (7,660,923) (1,224,599) (5,709,805) Inter Corporate deposits placed / matured 1,459,216 (1,877,413) (963,300) Certificate of Deposits with foreign banks 3,970,187 (1,357,968) (1,961,111) Sale / maturities on Investments 5,013,220 77,026 145,468 Payment for acquisition, net of cash acquired (3,947,117) - - Divided received 20,737 3,779 284,645 Interest received 300,364 456,790 560,355 ------------ ----------- ------------ NET CASH USED IN INVESTING ACTIVITIES (1,757,521) (5,281,347) (9,882,120) ------------ ----------- ------------ CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from exercise of Stock Option Plan grants 33,194 5,071 35,479 Share application money pending allotment 4,117 - - Dividends paid - (128,071) (128,071) Proceeds from issuance / (repayment) of borrowings 241,915 (197,561) (133,886) ------------- ----------- ------------- Net cash provided by/(used in) financing activities 279,226 (320,561) (226,478) ------------- ----------- ------------- Net increase/(decrease) in cash and cash equivalents during the year 1,996,792 (366,540) (1,556,456) Cash and cash equivalents at the beginning of the 3,031,909 4,588,365 4,588,365 period ------------- ----------- ------------- Cash and cash equivalents at the end of the period 5,028,701 4,221,825 3,031,909 ============= =========== =============
Notes: Figures for previous periods presented, have been regrouped wherever necessary, to confirm to this period classification. For and on behalf of the Board of Directors AZIM HASHAM PREMJI N. VAGHUL B.C. PRABHAKAR Chairman and Managing Director Director Director SURESH C. SENAPATY SATISH MENON Corporate Executive Corporate Vice Vice President - Finance President -- Legal & Company Secretary Bangalore, October 18, 2002 WIPRO LIMITED -------------------------------------------------------------------------------- AUDITOR'S CERTIFICATE We have examined the above cash flow statement of Wipro Limited -- consolidated for the six months period ended September 30, 2002. This statement is based on and in agreement with the corresponding Profit and Loss Account and Balance Sheet of the Company for the six month period ended September 30, 2002, covered by our report of even dated. FOR N M RAIJI & CO., Chartered Accountants J M GANDHI Partner Mumbai, October 18, 2002.