EX-19.1 3 f87551exv19w1.txt EXHIBIT 19.1 EXHIBIT 19.1 FOR IMMEDIATE RELEASE [WIPRO LOGO] Results for the Quarter ended December 2002 under Consolidated Indian GAAP WIPRO'S REVENUE GROWS 27% YEAR ON YEAR SEQUENTIAL GROWTH IN PRICING AND VOLUME LEAD TO 10% REVENUE GROWTH IN GLOBAL IT BUSINESS BANGALORE, JANUARY 17 2003 -Wipro Limited today announced its audited results approved by the Board of Directors for the quarter ended December 2002. HIGHLIGHTS OF RESULTS: - Revenue for the quarter was Rs. 11 billion, an increase of 27% year on year and Profit After Tax for the quarter was Rs. 2.3 billion, an increase of 3% year on year. Revenue(1) from continuing operations for the nine-month period was Rs. 31 billion. Profit After Tax(2) for the nine-month period was Rs.6.4 billion. - Wipro Technologies Revenue for the quarter increased 23% year on year to Rs.7.45 billion. - Wipro Technologies Profit Before Interest and Tax (PBIT) at Rs.2.1 billion was 29% of Revenue. - 24 new customers added in Global IT Services during the quarter, including 5 that are on the Fortune 1000 list. - Wipro Spectramind recorded Revenue of Rs. 564 million and PBIT of Rs. 140 million, which is 25% of Revenue. ACQUISITIONS: - Completed the acquisition of the remaining outstanding shares of Wipro Spectramind Services Ltd. - Closed the acquisition of the Global Energy practice of AMS, Inc. The financial results from this practice will be consolidated beginning with our results for the quarter ending March 31, 2003. - Entered into definitive agreements to purchase the assets related to the two Research & Development centers of Ericsson India Pvt Ltd at Bangalore and Hyderabad and the Research & Development center of EHPT India Pvt Ltd at Delhi. Employment offers made to 291 employees currently employed in these three centers. The transaction is expected to close in January, 2003. Concurrently, Ericsson AB has signed an agreement for purchase of consultancy services from Wipro for an amount of $17 million up to calendar year 2004. - Acquired a 40% equity share of Wipro Healthcare Information Technologies Ltd. (formerly GE Medical Systems Information Technologies Ltd.) held by Citadel Healthcare Ltd. for Rs. 97 million ($2 million). Upon closing, Wipro Healthcare Information Technologies Ltd. will be a wholly-owned subsidiary ------------------------- (1) Excluding Revenues of Rs.42 million for the nine-months ended December 2002 from discontinued ISP business. Corresponding Revenue for the nine-months ended December 31, 2001 was Rs. 427 million (2) Excluding loss (net of tax) of Rs. 404 million for the nine-month period ended December 2002 pertaining to discontinued ISP business which includes loss from operations (net of tax) of Rs. 115 million (previous period - Rs.62 million) and loss on write off of assets and exit costs of Rs. 289 million of the discontinued business OUTLOOK FOR THE QUARTER ENDING MARCH 31, 2003: AZIM PREMJI, CHAIRMAN OF WIPRO COMMENTING ON THE RESULTS FOR THE QUARTER SAID "WE SEE SUSTAINED VOLUME GROWTH WITH PRICES STABILIZING IN IT SERVICES AND GROWING VOLUMES AND WITH INTENSE PRICE COMPETITION IN THE IT ENABLED SERVICES. OUR 10% SEQUENTIAL REVENUE GROWTH IN GLOBAL IT SERVICES BUSINESS WAS THE RESULT OF AN 8% VOLUME GROWTH AND A 2% INCREASE IN PRICE REALIZATIONS. IN THE IT ENABLED SERVICES SEGMENT, INTENSE PRICE COMPETITION RESULTED IN REVENUES OF $11.6 MILLION FOR THE QUARTER ENDED DECEMBER 31, 2002 AGAINST OUR ESTIMATE OF APPROXIMATELY $12.5 MILLION. ENHANCED OPERATIONAL EFFICIENCY CONTRIBUTED TO A 4% INCREASE IN OPERATING MARGIN TO REVENUE OF 25%, NEGATING THE 4% DECLINE IN PRICE REALIZATION THAT WE SAW DURING THE QUARTER IN THIS SEGMENT. FOR THE QUARTER ENDED MARCH 2003, WE ESTIMATE THE REVENUE IN OUR GLOBAL IT SERVICES BUSINESS TO BE APPROXIMATELY $162 MILLION, IN WIPRO SPECTRAMIND TO BE APPROXIMATELY $12 MILLION AND IN WIPRO HEALTHSCIENCE AT APPROXIMATELY $2.5 MILLION." VIVEK PAUL, VICE CHAIRMAN AND CEO OF WIPRO TECHNOLOGIES, OUR GLOBAL IT SERVICES BUSINESS SAID "OUR ENTERPRISE BUSINESS WHICH CONTRIBUTES 62% OF OUR IT SERVICES REVENUE GREW SEQUENTIALLY BY 14%, REFLECTING THE STRONG VALUE PROPOSITION OF DOMAIN BASED BUSINESS SOLUTIONS TO OUR CLIENTS. OUR TECHNOLOGY BUSINESS GREW 4% SEQUENTIALLY REFLECTING OUR TECHNICAL DEPTH AND COMMITMENT TO OUR TECHNOLOGY CUSTOMERS WHO CONTINUE TO EXPERIENCE ECONOMIC AND BUSINESS PRESSURE. IN THE ENVIRONMENT OF INTENSE PRICE PRESSURE IN IT ENABLED SERVICES SPACE, OUR OPERATIONAL EXCELLENCE AND EXPERIENCE CONTINUES TO PROVIDE US WITH A COMPELLING COMPETITIVE ADVANTAGE." WIPRO LIMITED Revenues for the quarter ended December 31, 2002, were Rs. 11 billion, a growth of 27% year on year. Profit After Tax was Rs. 2.3 billion, representing an increase of 3% over Profit After Tax for the same period last year. Revenues(1) for the nine-months ended December 31, 2002, were Rs. 31 billion, representing a 23% increase over the previous year. Profit after Tax(2) for the nine-month period was Rs. 6.4 billion. WIPRO TECHNOLOGIES - OUR GLOBAL IT BUSINESS Wipro Technologies accounted for 67% of the Revenue and 85% of the PBIT for the quarter ended December 31, 2002. Wipro Technologies grew its Revenue by 23% year on year to Rs. 7.45 billion and PBIT by 2% to Rs. 2.1 billion. Operating Margin to Revenue at 29%, a decline of 1% sequentially, and 5% year on year. Sequentially, decline in utilization of IT professionals by 2% to 65% was partially offset by increase in price realization of 2.5% for Onsite projects. Price realization for Offshore projects was flat sequentially. Year on year, increase in IT professional utilization by 6% to 65% was offset by decrease in price realizations of 9.4% for Offshore projects and 7.7% for Onsite projects. ------------------------- (1) Excluding Revenues of Rs. 42 million for the nine-months ended December 2002 from discontinued ISP business. Corresponding Revenue for the nine-months ended December 31, 2001 was Rs. 427 million (2) Excluding loss (net of tax) of Rs. 404 million for the nine-month period ended December 2002 pertaining to discontinued ISP business which includes loss from operations (net of tax) of Rs. 115 million (previous period - Rs. 62 million) and loss on write off of assets and exit costs of Rs. 289 million of the discontinued business For the quarter ended December 31, 2002, the Enterprise Solutions practice contributed 62% of Revenue while the R&D Services practice the balance 38%. The proportion of Global IT Services Revenues from North America increased to 63% during the quarter from 51% a year ago. Correspondingly, the proportion of Revenue from Europe decreased to 31% from 42% for the quarter ended December 31, 2001. Japan contributed 6% for the quarter ended December 31, 2002. Our largest customer, top 5 and top 10 customers accounted for 9%, 26% and 40%, respectively, of our Global IT Services Revenue for the quarter ended December 31, 2002, as compared to 15%, 34% and 46% of our Global IT Services Revenue for the quarter ended December 31, 2001. 24 new clients were added in the quarter ended December 31, 2002, of which 5 customers are represented on the Fortune 1000 companies list. New customers added in current fiscal year contributed 11% of Revenue for the quarter ended December 31, 2002. Customers with an annual Revenue run rate of $1 million and above increased to 99 in the quarter ended December 31, 2002, up from 85 in the quarter ended December 31, 2001. Customers with an annual Revenue run rate of $5 million and above increased to 27 in the quarter ended December 31, 2002, up from 21 in the quarter ended December 31, 2001. Offshore Revenue for the quarter was 47% of services Revenue, up from 44% for the quarter ended December 31, 2001. Fixed Price projects were at 36% of the Revenue for the quarter, up from 33% for the quarter ended December 2001. Gross recruitment for the quarter was 1526 employees. We had 12,602 employees as of December 31, 2002, which represents an increase of 1,304 employees from September 30, 2002. WIPRO SPECTRAMIND - OUR IT ENABLED SERVICES BUSINESS Wipro Spectramind recorded Revenue of Rs.564 million with PBIT of Rs. 140 million. PBIT to Revenue was 25% for the quarter. During the quarter, Wipro Spectramind signed Letter of Intent with 4 new customers. The total number of active customers during the quarter was 9 as compared to 8 for the quarter ended September 30, 2002. The total number of employees was 3,884 as on December 31, 2002, an increase of 686 employees from September 30, 2002. WIPRO INFOTECH - OUR INDIA, MIDDLE EAST & ASIA PACIFIC IT SERVICES & PRODUCTS BUSINESS Wipro Infotech recorded Revenues of Rs 1.84 billion and Profit before Interest and Tax of Rs 111 Million for the quarter. For the nine-month period ended December 31, 2002, Revenues were Rs 5.94 billion and Profit before Interest and Tax was Rs 316 Million. Services revenue was 33% of the total Revenue for the quarter ended December 31st, 2002. The value added services (excluding agency income and product component from system integration) grew by 24% year on year. Product Revenues grew 31% year-on-year, contributed by growth in the enterprise server, networking products and Wipro desktops. In Software Services, we won 12 new projects, including projects from 9 new customers. These wins include a first of its kind ERP and GIS Implementation order from CIDCO (City and Industrial Development Corporation of Maharashtra) and a 5 year contract with AXA Australia to provide application maintenance and development services for their ERP application suite and a subset of related mainframe applications. Wipro also won an order from Dubai Dry Docks to implement an integrated enterprise-wide application across key organization functions leveraging Wipro's global delivery model. In the Total Outsourcing practice, VST Industries chose Wipro Infotech as its long-term partner to provide enterprise applications sustenance and managed IT services. Colgate Palmolive, which had entered into a long term Services agreement with Wipro Infotech during the previous quarter, has now extended the relationship to include IT infrastructure deployment as part of the agreement. In Consulting, Wipro won an order from Shaw Wallace to formulate its IT roadmap including a comprehensive Business Process Re-engineering exercise. During the quarter, Wipro Infotech was assessed enterprise-wide at PCMM Level-5 (version 2) for its robust people practices. WIPRO CONSUMER CARE & LIGHTING Wipro Consumer Care and Lighting business recorded Revenue of Rs. 745 million with PBIT of Rs.90 million contributing 7% of total Revenue and 4% of the Profit before Interest and Taxes for the quarter. PBIT to Revenue was 12% for the quarter. WIPRO HEALTHSCIENCE - OUR HEALTHCARE AND LIFE SCIENCE BUSINESS For the quarter ended December 31, 2002, Wipro HealthScience business segment recorded Revenue of Rs. 246 million and a loss of Rs. 4 million. IT-related services provided accounted for 38% of Revenue, and Revenue from Wipro Healthcare Information Technologies Ltd. accounted for 10% of Revenue. Products and services sold in the Indian market through the Wipro Biomed division accounted for 52% of Revenue. WIPRO LIMITED For the quarter ended December 31, 2002, the Return on Capital Employed in Wipro Technologies was 88%, Wipro Infotech was 36% and Consumer Care and Lighting was 57%. At the Company level, the Return on Capital Employed was 31%, lower due to inclusion of cash and cash equivalents of Rs. 15.1 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 DECEMBER 2002 WAS RS.2.19 BILLION, A DECLINE OF 4% AS COMPARED TO THE CORRESPONDING QUARTER ENDED DECEMBER 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 (1:15 AM Eastern Time) and at 7:00 PM Indian Standard Time (8:30 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 Communications Phone: ++91-80-844-0079 ++91-80-844-0076 Fax: ++91-80-844-0051 ++91-80-844-0350 lakshminarayana.lan@wipro.com 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 DECEMBER 31, 2002 ---------------------------------------------------------------------------------------------- INDIA & GLOBAL IT IT ASIAPAC SERVICES & ENABLED IT SERVICES PRODUCTS SERVICES & PRODUCTS ---------- -------- ----------- REVENUE External Sales & Services 7,451 564 1,803 Internal Sales & Services - - 33 TOTAL 7,451 564 1,836 GROWTH IN REVENUES 23% 19% % of total revenues 67% 5% 17% PROFIT BEFORE INTEREST AND TAX (PBIT) 2,126 140 111 GROWTH IN PBIT 2% 9% % of total PBIT 85% 5% 4% OPERATING MARGINS 29% 25% 6% Interest income (net of interest expense Rs.4 mn) PROFIT BEFORE TAX Income Tax expense PROFIT BEFORE EXTRAORDINARY ITEMS GROWTH Discontinuance of ISP business (refer note 10) 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 4,695 621 320 Trade receivables 4,661 247 1,874 Cash balances/Investments 277 64 120 Other assets 2,151 310 906 Goodwill 1,039 3,568 - Current Liabilities (2,987) (224) (2,021) Capital employed 9,836 4,586 1,199 % of capital employed 30% 14% 4% Capital expenditure 429 73 22 Depreciation 271 49 51 Annualized Return on average capital employed from continuing business 88% 12% 36% -------------------------------------------------------------------------------------------
(IN RUPESS MILLIONS) ---------------------------------------------------------------------------------------------------------------------------- CONSUMER WIPRO CARE & HEALTH CONTINUING DISCONTINUED WIPRO LIGHTING SCIENCE OTHERS OPERATIONS ISP BUSINESS LIMITED ---------- --------- -------- ------------ -------------- --------- REVENUE External Sales & Services 745 246 270 11,079 4 11,083 Internal Sales & Services - - (33) - - - TOTAL 745 246 237 11,079 4 11,083 GROWTH IN REVENUES (2%) 35% 28% - 27% % of total revenues 7% 2% 2% - - PROFIT BEFORE INTEREST AND TAX (PBIT) 90 (4) 41 2,504 (14) 2490 GROWTH IN PBIT (15%) - - 9% - 11% % of total PBIT 4% 0% 2% 100% - 100% OPERATING MARGINS 12% - - 23% - 22% Interest income (net of interest expense Rs.4 mn) 220 - 220 PROFIT BEFORE TAX 2,724 (14) 2710 Income Tax expense (350) 5 (345) PROFIT BEFORE EXTRAORDINARY ITEMS 2,374 (9) 2365 GROWTH 4.9% 5.9% Discontinuance of ISP business (refer note 10) - (1) (1) PROFIT BEFORE EQUITY IN EARNINGS / (LOSSES) OF AFFILIATES & MINORITY INTEREST 2,374 (10) 2,364 Equity in earnings affiliates (48) (48) Minority interest (10) (10) PROFIT AFTER TAX 2,316 (10) 2,306 GROWTH 2% 3% OTHER INFORMATION Net fixed assets 399 38 920 6,993 34 7,027 Trade receivables 169 289 152 7,392 23 7,415 Cash balances/Investments 155 27 14,459 15,102 - 15,102 Other assets 346 164 1,356 5,233 4 5,237 Goodwill -- 209 18 4,834 - 4,834 Current Liabilities (457) (329) (425) (6,443) (211) (6,654) Capital employed 612 398 16,480 33,111 (150) 32,961 % of capital employed 2% 1% 49% - - 100% Capital expenditure 3 9 9 - - 545 Depreciation 17 3 20 - - 412 Annualized Return on average capital employed from continuing business 57% - - - - 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 3,046 USA 5,200 Rest of the World 2,837 ------ Total 11,083 ----------------------------------------------
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 3,568 ----- 4,354 -----
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. 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 (21) Goodwill 148 --- 181 -----------------------------------
In December 2002, the Company acquired the remaining 40% minority equity interest for Rs. 97 Mn. The acquisition resulted in goodwill of Rs. 61 Mn. 9. In December 2002, the Company acquired the global energy practice of American Management Systems for an aggregate consideration of Rs. 1,180 Mn. The global energy practice, which addresses the IT requirements of enterprises in energy and utilities sector, has a team of 90 domain experts and IT consultants with expertise in the areas of complex billing and settlement in energy markets, systems integration, enterprise application integration, and program management capabilities. 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 ----------------------------------- Fixed assets 16 Receivables 126 Goodwill 1,038 ----- 1,180 -----------------------------------
10. 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.
(IN RUPESS MILLIONS) ---------------------------------------------------------------------------------------------- WIPRO LIMITED - CONSOLIDATED AUDITED SEGMENT WISE BUSINESS PERFORMANCE FOR THE NINE MONTHS PERIOD ENDED DECEMBER 31, 2002 ---------------------------------------------------------------------------------------------- GLOBAL IT IT INDIA & ASIAPAC CONSUMER SERVICE S & ENABLED IT SERVICES & CARE & PRODUCTS SERVICES PRODUCTS LIGHTING ----------- -------- --------------- -------- REVENUE External Sales & Services 20,524 985 5,821 2,210 Internal Sales & Services - - 124 - TOTAL 20,524 985 5,945 2,210 GROWTH IN REVENUES 22% 19% (4%) % of total revenues 66% 3% 19% 7% PROFIT BEFORE INTEREST AND TAX (PBIT) 6,147 227 316 329 GROWTH IN PBIT 4% 2% 5% % of total PBIT 87% 3% 4% 5% OPERATING MARGINS 30% 23% 5% 15% Interest income (net of interest expense of Rs. 18 Mn) PROFIT BEFORE TAX Income Tax expense PROFIT BEFORE EXTRAORDINARY ITEMS GROWTH Discontinuance of ISP business (net of tax benefit of Rs. 89 Mn) PROFIT BEFORE EQUITY IN EARNINGS / (LOSSES) OF AFFILIATES & MINORITY INTEREST Equity in earnings affiliates Minority interest PROFIT AFTER TAX Growth ----------------------------------------------------------------------------------------------------
(IN RUPESS MILLIONS) ---------------------------------------------------------------------------------------------------- WIPRO HEALTH CONTINUING DISCONTINUED WIPRO SCIENCE OTHERS OPERATIONS ISP BUSINESS LIMITED ---------------------------------------------------------------------------------------------------- REVENUE External Sales & Services 655 769 30,964 42 31,006 Internal Sales & Services - (124) - - - TOTAL 655 645 30,964 42 31,006 GROWTH IN REVENUES 37% 23% - 22% % of total revenues 2% 3% PROFIT BEFORE INTEREST AND TAX (PBIT) (17) 80 7,082 (182) 6,900 GROWTH IN PBIT - - 8% - 7% % of total PBIT 0% 1% - - 100% OPERATING MARGINS - - 23% - 22% Interest income (net of interest expense of Rs. 18 Mn) 527 - 527 PROFIT BEFORE TAX 7609 (182) 7,427 Income Tax expense (961) 67 (894) PROFIT BEFORE EXTRAORDINARY ITEMS 6,648 (115) 6,533 GROWTH 0.7% (0.1%) Discontinuance of ISP business (net of tax benefit of Rs. 89 Mn) - (289) (289) PROFIT BEFORE EQUITY IN EARNINGS / (LOSSES) OF AFFILIATES & MINORITY INTEREST 6,648 (404) 6,244 Equity in earnings affiliates (259) (259) Minority interest (34) (34) PROFIT AFTER TAX 6,355 (404) 5,951 Growth (4%) (9%)
WIPRO LIMITED
(RS. IN 000s) -------------------------------------------- AS OF DECEMBER 31, AS OF MARCH 31, -------------------------------------------- CONSOLIDATED BALANCE SHEET SCHEDULE 2002 2001 2002 -------------------------------------------------------------------------------------------------------------------- SOURCES OF FUNDS SHAREHOLDERS' FUNDS Share Capital 1 465,094 464,879 464,931 Share application money pending allotment (refer note 12) 3,663 2,399 Reserves and Surplus 2 32,298,548 24,245,563 25,460,163 ------------------------------------------- 32,763,642 24,714,105 25,927,493 ------------------------------------------- LOAN FUNDS Secured loans 3 50,398 223,290 254,872 Unsecured loans 4 61,395 56,201 60,563 MINORITY INTEREST 85,891 - 27,542 ------------------------------------------- 197,684 279,491 342,977 ------------------------------------------- TOTAL 32,961,326 24,993,596 26,270,470 ------------------------------------------------------------------------------------------------------------------- APPLICATION OF FUNDS FIXED ASSETS Goodwill on consolidation - refer note 1 4,833,992 - 12,670 Gross block 5 11,777,947 11,112,516 10,069,036 Less : Depreciation 6,018,090 5,007,099 4,770,280 -------------------------------------------- Net Block 10,593,849 6,105,417 5,311,426 Capital work-in-progress and advances 1,266,854 1,180,997 1,164,327 -------------------------------------------- 11,860,703 7,286,414 6,475,753 -------------------------------------------- INVESTMENTS 6 9,130,903 5,138,967 4,680,822 DEFERRED TAX ASSETS 441,152 141,258 421,803 CURRENT ASSETS, LOANS AND ADVANCES Inventories 7 956,765 872,181 934,600 Sundry Debtors 8 7,414,764 5,547,000 6,514,625 Cash and Bank balances 9 5,305,009 1,524,334 3,031,909 Loans and advances 10 4,504,505 10,300,093 10,086,810 -------------------------------------------- 18,181,043 18,243,608 20,567,944 -------------------------------------------- CURRENT LIABILITIES AND PROVISIONS Liabilities 11 6,044,330 5,281,891 5,223,455 Provisions 12 609,202 535,516 653,156 -------------------------------------------- 6,653,532 5,817,407 5,876,611 -------------------------------------------- -------------------------------------------- NET CURRENT ASSETS 11,527,511 12,426,201 14,691,333 -------------------------------------------- Miscellaneous expenditure ( to the extent not written off or adjusted) 1,057 756 759 -------------------------------------------- TOTAL 32,961,326 24,993,596 26,270,470 ------------------------------------------------------------------------------------------------------------------- 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 - Finance President - Legal & Company Secretary Mumbai, January 17, 2003 Bangalore, January 17, 2003 WIPRO LIMITED
(Rs. IN 000s) ----------------------------------------------------- NINE MONTHS ENDED DECEMBER 31, YEAR ENDED MARCH 31, ----------------------------------------------------- CONSOLIDATED PROFIT AND LOSS ACCOUNT SCHEDULE 2002 2001 2002 -------------------------------------------------------------------------------------------------------------------- INCOME Gross Sales and Services 31,062,551 25,595,411 35,032,098 LESS: Excise Duty 506,920 445,518 627,012 ------------------------------------------------ Net Sales and Services 30,555,631 25,149,893 34,405,086 ------------------------------------------------ Other Income 13 995,015 1,017,391 1,558,236 ------------------------------------------------ 31,550,646 26,167,284 35,963,322 -------------------------------------------------------------------------------------------------------------------- EXPENDITURE Cost of goods sold 14 19,471,268 15,698,479 21,588,668 Selling, general and administrative expenses 15 4,634,203 3,388,395 4,762,275 Interest 16 18,232 19,303 29,697 ------------------------------------------------ 24,123,703 19,106,177 26,380,640 -------------------------------------------------------------------------------------------------------------------- PROFIT BEFORE TAXATION: Continuing Operations 7,609,186 7,157,987 9,707,309 Discontinuing Operations (182,243) (96,880) (124,627) -------------------------------------------------------------------------------------------------------------------- TOTAL 7,426,943 7,061,107 9,582,682 -------------------------------------------------------------------------------------------------------------------- PROVISION FOR TAXATION: (refer note 9) Continuing Operations 960,756 554,621 773,492 Discontinuing Operations (66,974) (34,586) (44,492) -------------------------------------------------------------------------------------------------------------------- TOTAL 893,782 520,035 729,000 -------------------------------------------------------------------------------------------------------------------- PROFIT FOR THE PERIOD BEFORE EXTRAORDINARY ITEMS: Continuing Operations 6,648,430 6,603,366 8,933,817 Discontinuing Operations (115,269) (62,294) (80,135) -------------------------------------------------------------------------------------------------------------------- TOTAL 6,533,161 6,541,072 8,853,682 -------------------------------------------------------------------------------------------------------------------- Loss on discontinuance of ISPbusiness-refer note 6 18 (378,199) - - Tax benefit on above 89,261 - - -------------------------------------------------------------------------------------------------------------------- Net loss on discontinuance of ISP business (288,938) - - -------------------------------------------------------------------------------------------------------------------- PROFIT FOR THE PERIOD BEFORE MINORITY INTEREST / EQUITY IN EARNINGS OF AFFILIATES: 6,244,223 6,541,072 8,853,682 -------------------------------------------------------------------------------------------------------------------- Minority Interest (34,679) - 808 Equity in earnings / (losses) of affiliates (258,630) - - -------------------------------------------------------------------------------------------------------------------- PROFIT FOR THE PERIOD 5,950,914 6,541,072 8,854,490 -------------------------------------------------------------------------------------------------------------------- EARNINGS PER SHARE ( in Rs.) BASIC On profit for the period from continuing operations 28.76 28.57 38.65 On losses of discontinued ISP business (0.50) (0.27) (0.35) On extraordinary items (1.25) - - On equity in earnings of affiliates / minority interest (1.27) - - On profit for the period 25.74 28.30 38.30 DILUTED On profit for the period from continuing operations 28.71 28.53 38.59 On losses of discontinued ISP business (0.50) (0.27) (0.35) On extraordinary items (1.25) - - On equity in earnings of affiliates / minority interest (1.27) - - On profit for the period 25.69 28.26 38.24 NUMBER OF SHARES Basic 231,186,761 231,132,818 231,132,500 Diluted 231,567,521 231,430,057 231,534,876 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 Corporate Vice President - Vice President - Finance Legal & Company Secretary Mumbai, January 17, 2003 Bangalore, January 17,2003 WIPRO LIMITED
(Rs. In 000s, except share numbers) ------------------------------------------ AS OF DECEMBER 31, AS OF MARCH 31, ------------------------------------------ 2002 2001 2002 ------------------------------------------ SCHEDULE 1 SHARE CAPITAL AUTHORIZED 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 each 250,000 250,000 250,000 ----------------------------------------- 1,000,000 1,000,000 1,000,000 ----------------------------------------- ISSUED, SUBSCRIBED AND PAID-UP 232,547,145 (2002: 232,465,689; 2001: 232,439,524) equity shares of Rs 2 each 465,094 464,879 464,931 ----------------------------------------- 465,094 464,879 464,931 =========================================
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) 228,295 (2002: 146,839; 2001:6,505) equity share issued pursuant to Employee Stock Option Plan. SCHEDULE 2 RESERVES AND SURPLUS
-------------------------------------------------------------------------- AS OF ADDITIONS DEDUCTIONS AS OF APRIL DECEMBER, 1, 2002 31, 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 88,352 (A) - 6,474,587 5,920,208 437,664 6,357,872 5,920,208 466,027 - 6,386,235 -------------------------------------------------------------------------- REVALUATION RESERVE - - - - 890,072 52,255 (b) 837,817 890,072 - 890,072 - -------------------------------------------------------------------------- DEFERRED STOCK COMPENSATION 4,401 4,401 - - - - - - - - -------------------------------------------------------------------------- INVESTMENT ALLOWANCE RESERVE - - - - 14,500 14,500 - 14,500 - 14,500 (c) - -------------------------------------------------------------------------- PROFIT & LOSS ACCOUNT 5,950,914 5,950,914 6,541,072 6,541,072 -------------------------------------------------------------------------- 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 6,838,385 32,298,548 19,184,623 7,559,740 2,498,800 24,245,563 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. 88,352 (2002: 35,414; 2001:7,051) pursuant to issue of shares under Employee Stock Option Plan and 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. 39,388) and reduction on account of sale of revalued assets and other adjustments Rs. Nil (2002: Rs. Nil; 2001: Rs. 12,866). 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 7 of schedule 19). e) Additions to General Reserves includes:
------------------------------------------------------------------------------------------------------------------------ December 31, 2002 March 31, 2002 December 31, 2001 ----------------------------------------------------------- Accumulated losses of subsidiaries as on March 31, 2001 (99,274) (99,274) Write bank of diminution in value of investment in 108,196 108,196 subsidiaries 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, 470,355 470,355 2001 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 DECEMBER 31, AS OF MARCH 31, -------------------------------------------------- SCHEDULE 3 SECURED LOANS Reference 2002 2001 2002 -------------------------------------------------- FROM BANKS CASH CREDIT FACILITY A 20,523 112,516 204,997 EXTERNAL COMMERCIAL BORROWINGS B - 60,899 - FROM FINANCIAL INSTITUTIONS asset credit scheme c 28,200 48,200 48,200 DEVELOPMENT LOAN FROM GOVERNMENT OF KARNATAKA D 1,675 1,675 1,675 -------------------------------------------------- 50,398 223,290 254,872 ==================================================
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 December 31, As of March 31, --------------------------------------------------- SCHEDULE 4 UNSECURED LOANS 2002 2001 2002 --------------------------------------------------- FIXED DEPOSITS - 854 843 OTHER LOANS AND ADVANCES Interest free loan from Government 60,145 54,097 58,470 Loans from state financial institutions 1,250 1,250 1,250 --------------------------------------------------- 61,395 56,201 60,563 ===================================================
WIPRO LIMITED SCHEDULE 5 FIXED ASSETS (Rs. In 000s)
-------------------------------------------------------------------------------- Particulars GROSS BLOCK -------------------------------------------------------------------------------- AS OF AS OF APRIL 1, Deductions / DEC 31, 2002 Additions adjustments 2002 -------------------------------------------------------------------------------- Land 584,916 28,938 - 613,854 Buildings 1,470,580 421,653 3,037 1,889,196 Railway siding 12 - - 12 Plant and Machinery 6,299,405 1,299,400 286,406 7,312,399 Furniture fixture and equipment 1,280,868 157,623 14,638 1,423,853 Vehicles 420,843 147,865 42,487 526,221 Technical Know-how 10,378 - - 10,378 Patents and trademark 2,034 - - 2,034 -------------------------------------------------------------------------------- Total 10,069,036 2,055,479 346,568 11,777,947 --------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------- Particulars PROVISION FOR DEPRECIATION NET BLOCK ---------------------------------------------------------------------------------------------------------------------- AS OF Depreciation AS OF AS OF AS OF APRIL 1, for the Deductions / DEC 31, DEC 31, MARCH 31, 2002 period adjustments 2002 2002 2002 ---------------------------------------------------------------------------------------------------------------------- Land 5,510 2,906 - 8,416 605,438 579,406 Buildings 93,446 38,769 (24,084) 156,299 1,732,897 1,377,134 Railway siding 12 - - 12 - - Plant and Machinery 3,869,116 1,085,067 132,770 4,821,413 2,490,986 2,430,289 Furniture fixture and equipment 601,525 177,149 (2,220) 780,894 642,959 679,343 Vehicles 189,832 71,699 21,837 239,694 286,527 231,011 Technical Know-how 9,949 321 - 10,270 108 429 Patents and trademark 890 202 - 1,092 942 1,144 ---------------------------------------------------------------------------------------------------------------------- Total 4,770,280 1,376,113 128,303 6,018,090 5,759,857 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 VALUE) AS OF DECEMBER 31, AS OF MARCH 31, ------------------------------------------------------------------------ ALL SHARES ARE FULLY PAID UP UNLESS OTHERWISE STATED FACE NUMBER VALUE 2002 2001 2002 ------------------------------------------------------------------------ INVESTMENTS - LONG TERM (AT COST) INVESTMENT IN AFFILIATES Wipro GE Medical Systems Ltd # 513,219 - - WeP Peripherals Ltd 117,470 - - ---------------------------------------------- 630,689 - - ---------------------------------------------- INVESTMENTS IN EQUITY SHARES OF OTHER COMPANIES QUOTED TRADE INVESTMENTS Dynamatic Technologies Ltd 3732 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 - 96,200 144,299 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$ 0.1 480 479 489 ---------------------------------------------- 482 218,916 248,390 ---------------------------------------------- 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 - 143,800 215,701 ---------------------------------------------- - 238,130 255,701 ---------------------------------------------- OTHER INVESTMENTS (UNQUOTED) Redeemable floating rate bonds of State Bank of India 2,500 Rs 1,000 2,500 2,500 2,500 Indira Vikas Patra 47,952 47,952 47,952 National Saving Certificates (held in custody by Andhra 6 Pradesh Govt.) Bonds of GE Capital Services India - 68,439 - ---------------------------------------------- 50,458 118,891 50,452 ---------------------------------------------- INVESTMENTS - SHORT TERM: IN MONEY MARKET MUTUAL FUNDS Alliance Capital Mutual Fund (40,760,773 units redeemed 18,189,384 265,565 288,601 265,910 during the period) Franklin Templeton Mutual Fund (1,158,768 units redeemed 587,211 681,700 365,278 452,168 during the period) Prudential ICICI Mutual Fund (358,593,950 units redeemed 924,966 during the period) 132,502,532 1,527,520 885,184 HDFC Mutual Fund (440,126,994 units redeemed during the 160,487,280 1,791,620 998,550 521,910 period ) Standard Chartered Mutual Fund (183,886,190 units redeemed during the period) 84,509,715 980,800 305,701 230,320 Reliance Mutual Fund (155,836,925 units redeemed during 54,558,293 788,100 245,933 505,064 the period) Zurich India Mutual Fund (324,921,205 units redeemed 94,256,631 1,069,900 443,956 400,499 during the period) Franklin Templeton India Mutual Fund (35,080,663 units redeemed during the period) 16,890,816 249,300 221,561 98,842 Cholamandalam Mutual Fund (27,700,326 units redeemed during the period) - 145,118 147,389 Kotak Mutual Fund (126,051,037 units redeemed during the 47,420,648 515,165 308,273 225,154 period) J M Mutual Fund (8,359,597 units redeemed during the 8,354,450 87,700 - - period) DSP Merrill Lynch Mutual Fund (7,841,215 units redeemed during the period) 7,835,360 80,600 Birla Mutual Fund (78,814,678 units redeemed during the 44,058,495 411,096 354,638 353,820 period) ---------------------------------------------- 8,449,066 4,562,793 4,126,042 ---------------------------------------------- ---------------------------------------------- Total 9,130,903 5,138,967 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 DECEMBER 31, AS OF MARCH 31, ----------------------------------------------- 2002 2001 2002 ----------------------------------------------- SCHEDULE 7 INVENTORIES Stores and Spares 32,707 34,860 31,425 Raw Materials 368,049 365,544 453,018 Stock-in-process 138,729 100,633 84,722 Finished goods 417,280 371,144 365,435 ----------------------------------------------- 956,765 872,181 934,600 ===============================================
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 799,262 517,008 686,166 Considered doubtful 640,335 557,619 506,630 ----------------------------------------------- 1,439,597 1,074,627 1,192,796 ----------------------------------------------- OTHERS Considered good 6,615,502 5,029,992 5,828,459 Considered doubtful - 40,763 5,737 ----------------------------------------------- 6,615,502 5,070,755 5,834,196 ----------------------------------------------- Less: Provision for doubtful debts 640,335 598,382 512,367 ----------------------------------------------- 7,414,764 5,547,000 6,514,625 ===============================================
SCHEDULE 9 CASH AND BANK BALANCES CASH AND CHEQUES ON HAND 185,787 129,152 299,481 BALANCES WITH SCHEDULED BANKS On Current account 738,369 656,336 588,229 In Deposit account 2,240,025 244,800 100,295 BALANCES WITH OTHER BANKS IN CURRENT ACCOUNT Midland Bank, U K - 129,791 146,146 Wells Fargo, U S A 97,827 85,577 1,081,773 Nations Bank - 97,627 Deutsche Bank - 487,942 Societe General 77,136 198,324 Bank of America 11,357 26,117 27,142 Standard Chartered Bank 4,123 - - Shanghai C&S Bank 126 - - Bank of Scotland 480,000 Danske Bank 480,000 - - National City Bank 84,336 - - Allied Irish Banks 240,000 American express centurion 480,000 Svenska Handelsbanken 240,000 Hongkong & Shanghai Bank 716 Bank of Tokyo 22,318 First Chicago - 60,782 976 Citibank - - 1,949 FCC National Bank - 55,090 976 Chase Manhattan - 59,528 1,025 Great Western Bank 25 25 24 ------------------------------------------------------------- 5,305,009 1,524,334 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 DECEMBER 31, 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 1,416,673 1,245,538 949,297 Considered doubtful 71,692 131,087 71,451 --------------------------------------------------------- 1,488,365 1,376,625 1,020,748 --------------------------------------------------------- Less: Provision for doubtful advances 71,692 131,087 71,451 --------------------------------------------------------- 1,416,673 1,245,538 949,297 --------------------------------------------------------- Certificate of deposits with foreign banks 481,609 6,109,922 5,287,219 Inter Corporate Deposits: GE Capital Services India 200,741 719,191 819,891 Citicorp Financial services Limited 35,497 - ICICI Limited - 376,800 1,245,200 --------------------------------------------------------- 236,238 1,095,991 2,065,091 --------------------------------------------------------- Other Deposits 633,517 535,094 549,089 Advance income-tax (net of provision) 496,273 432,607 243,485 Balances with excise and customs 9,735 23,288 38,821 Unbilled Services 1,230,460 857,653 953,808 --------------------------------------------------------- 4,504,505 10,300,093 10,086,810 =========================================================
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 LIABILTIES Sundry Creditors 1,891,601 2,010,286 2,268,027 Unclaimed dividends 1,588 1,674 1,588 Advances from customers 756,996 827,668 870,030 Other liabilities 3,096,338 2,441,794 2,083,509 Unbilled Services 297,621 - - Interest accrued but not due on loans 186 469 301 ----------------------------------------------- 6,044,330 5,281,891 5,223,455 =============================================== SCHEDULE 12 PROVISIONS Employee retirement benefits 609,202 535,516 408,990 Proposed dividend - - 232,466 Tax on proposed dividend - - - Other Provision - - 11,700 ----------------------------------------------- 609,202 535,516 653,156 ===============================================
--------------------------------------------------- NINE MONTHS ENDED YEAR ENDED DECEMBER 31, MARCH 31, --------------------------------------------------- SCHEDULE 13 OTHER INCOME 2002 2001 2002 --------------------------------------------------- Dividend from mutual funds 20,737 59,953 279,549 Dividend from companies - 1,820 5,096 Interest on debt instruments 207,637 585,553 753,287 Rental Income 19,453 15,038 19,227 Profit on Sale of Investments 315,819 - - Profit on disposal of fixed assets 2,959 17,428 36,251 Difference in exchange 321,687 175,304 214,187 Brand fees 40,242 39,762 53,016 Royalty 5,000 31,344 39,344 Provision no longer required written back 21,291 57,355 115,354 Miscellaneous Income 40,190 33,834 42,925 --------------------------------------------- 995,015 1,017,391 1,558,236 =============================================
Notes: Tax deducted at source Rs.104,805 (2002 : Rs. 130,897; 2001:107,544) WIPRO LIMITED
(Rs. In 000s) --------------------------------------------------- NINE MONTHS ENDED YEAR ENDED DECEMBER 31, MARCH 31, --------------------------------------------------- 2002 2001 2002 --------------------------------------------------- SCHEDULE 14 COST OF GOODS SOLD Raw materials, Finished and Process Stocks (refer - schedule 17) 5,590,272 5,641,065 7,952,910 Stores & Spares 124,841 206,003 184,958 Power and Fuel 265,824 241,121 307,910 Salaries, wages and bonus 3,604,233 2,893,832 3,792,838 Contribution to provident and other funds 133,483 107,162 143,459 Gratuity and pension 149,764 97,439 121,292 Workmen and Staff welfare 111,692 116,596 154,060 Insurance 18,060 12,846 16,797 Repairs to factory buildings 6,361 8,782 10,790 Repairs to Plant & Machinery 282,526 13,301 116,510 Rent 161,792 164,472 202,116 Rates & Taxes 22,887 5,386 11,933 Packing 49,033 47,277 63,358 Travelling and allowances 6,119,361 4,030,820 5,492,051 Depreciation 824,056 799,895 1,108,743 Technical fees 126,881 109,251 136,439 Miscellaneous 1,981,456 1,238,550 1,848,772 Less: Capitalized (101,254) (35,319) (76,268) ------------------------------------------------ 19,471,268 15,698,479 21,588,668 ================================================ SCHEDULE 15 SELLING GENERAL AND ADMINISTRATIVE EXPENSES Salaries, wages and bonus 881,474 631,078 770,021 Contribution to provident and other funds 28,074 18,779 25,191 Gratuity and pension 36,283 28,536 32,959 Workmen and Staff welfare 99,772 74,276 114,501 Insurance 6,845 4,836 6,108 Repairs to buildings 3,817 1,380 3,781 Rent 99,344 87,264 121,202 Rates and taxes 53,108 28,586 21,764 Carriage and freight 97,989 130,961 166,776 Commission on sales 31,341 (26,775) 108,583 Auditors' remuneration and expenses Audit fees 4,738 2,474 3,522 For certification including tax audit 114 - 969 Reimbursement of expenses 227 204 859 Advertisement and sales promotion 295,324 233,284 316,252 Loss on sale of fixed assets 2,794 1,207 10,648 Directors' fees 62 752 800 Depreciation 281,037 244,908 319,495 Travelling and allowances 1,777,559 1,065,864 1,586,529 Communication 176,348 117,864 112,765 Provision/write off of bad debts 155,895 264,705 265,224 Diminution in value of investments (mutual fund units) - - 163,147 Miscellaneous 602,058 478,212 611,179 ------------------------------------------------ 4,634,203 3,388,395 4,762,275 ================================================
WIPRO LIMITED
(Rs. In 000s) ------------------------------------------------- NINE MONTHS ENDED YEAR ENDED DECEMBER 31, MARCH 31, ------------------------------------------------- 2002 2001 2002 ------------------------------------------------- SCHEDULE 16 INTEREST On fixed loans 5,031 7,422 9,124 Other 13,201 11,881 20,573 ------------------------------------------------ 18,232 19,303 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 3,293,839 2,221,108 3,720,523 Less: Transfer on sale of undertaking - - 46,496 Less: Closing stocks 368,049 365,544 439,930 ----------------------------------------------- 3,365,720 2,355,100 3,733,633 ----------------------------------------------- ----------------------------------------------- PURCHASE OF FINISHED PRODUCTS FOR SALE 2,330,404 3,149,437 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 138,729 100,633 84,722 : Finished products 417,280 371,144 365,435 ----------------------------------------------- (105,852) 136,528 12,867 ----------------------------------------------- ----------------------------------------------- 5,590,272 5,641,065 7,952,910 =============================================== SCHEDULE 18 NON - RECURRING / EXTRAORDINARY ITEMS Loss of discontinued ISP business 378,199 ----------------------------------------------- 378,199 ===============================================
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 - Sales include applicable sales tax unless separately charged, export incentives, and are net of discounts. - 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 - Export incentives are accounted on accrual basis and include estimated realizable values/benefits from special import licenses and Advance licenses. - Agency commission is accrued on shipment of consignment by principal. - Maintenance revenue is considered on acceptance of the contract and is accrued over the period of the contract. - 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 3,568,494 GE Medical Systems Information Technologies Limited 208,960 Global energy practice of AMS Inc. 1,038,267 --------- 4,833,992 ------------------------------------------------------------------------
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 692,747 Minority interest (68,286) Goodwill 3,568,494 --------- 4,353,570 --------------------------------------------------------
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. 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 In December 2002, the Company acquired the remaining 40% minority equity interest for Rs 97,051. The acquisition resulted in goodwill of Rs. 60,734. 4. In December 2002, the Company acquired the global energy practice of American Management Systems for an aggregate consideration of Rs. 1,180,415. The global energy practice, which addresses the IT requirements of enterprises in energy and utilities sector, has a team of 90 domain experts and IT consultants with expertise in the areas of complex billing and settlement in energy markets, systems integration, enterprise application integration, and program management capabilities. 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) ---------------------------------------------------------------- Fixed Assets 15,586 Receivables 126,562 Goodwill 1,038,267 --------- 1,180,415 ----------------------------------------------------------------
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. Investments in Wipro e Peripherals have been accounted for by equity method. 6. 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. 7. 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 -------------------------------------------------------------------------------
8. Deferred tax comprise of:
(Rs. In 000s) ------------------------------------------------------------------ Deferred tax assets: Allowance for doubtful debts 102,364 Property plant and equipment 116,743 Employee stock incentive plan 38,902 Accrued expenses 42,192 Business losses carried forward 140,951 ------- 441,152 ------------------------------------------------------------------
WIPRO LIMITED 9. Provision for taxation comprises of following: (i) Rs. 418,570 (2002: Rs. 388,837; 2001: Rs. 188,675) 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. 40,951) in respect of earlier year (ii) Rs. 383,701 (2002: 337,163; 2001: Rs. 329,110) in respect of Indian Income Tax, net of tax benefit from discontinued business of Rs. 156,235, net of deferred tax expense of Rs. 90,130 (2002: Rs. 236,130; 2001: Rs. Nil) and write back of provision of Rs.193,612 (2002: Rs. 19,921; 2001: Rs. 42,000) in respect of earlier years. (iii) Rs.2,250 (2002: Rs. 3,000; 2001: Rs. 2,250) in respect of Wealth Tax. 10. 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 100% Wipro Spectramind eServices Limited India 92% Wipro Technology Inc. USA - * Wipro Holdings Mauritius Limited Mauritius 100% 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. 11. Diluted EPS is calculated based on treasury stock method for ESOP outstanding. 12. Amount received from employees on exercise of stock option, pending allotment of shares is shown as share application money pending allotment. 13. 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 and other subsidiaries acquired during the current period. WIPRO LIMITED
CASH FLOW STATEMENT (Rs. In 000s) ------------------------------------------------------- NINE MONTHS ENDED YEAR ENDED DECEMBER 31, MARCH 31, ------------------------------------------------------- 2002 2001 2002 ------------------------------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES: Profit before tax from continuing operations 7,315,877 7,157,987 9,707,309 Adjustments to reconcile Net profit before tax and non recurring items to net cash provided by operating activities: Depreciation and amortization 1,064,564 943,446 1,256,011 Foreign currency translation gains (321,687) (48,240) (119,637) Loss of discontinued operations - - Minority interest 34,679 - - Equity in earnings of affiliates 307,630 - - Retirement benefits provision 200,212 130,615 (6,413) Others (298) - (12,676) Interest on borrowings 18,232 - 28,941 Dividend / interest (544,193) (647,326) (873,941) Loss / (Gain) on sale of property, plant and equipment (2,959) (17,428) (25,603) Operating cash flow before changes in working capital 8,072,057 7,519,054 9,953,991 Trade and other receivable (536,680) 929,969 (221,660) Loans and advances (469,931) (895,635) (778,532) Inventories (other than stock-in-trade land) (22,165) 280,349 217,929 Trade and other payables 356,778 340,303 566,620 ----------------------------------------------------- Net cash provided by operations 7,400,059 8,174,040 9,738,348 Direct taxes paid (1,123,339) (950,577) (1,199,885) ----------------------------------------------------- NET CASH PROVIDED BY CONTINUING OPERATIONS 6,276,720 7,223,463 8,538,463 ----------------------------------------------------- NET CASH PROVIDED BY DISCONTINUING OPERATIONS 31,014 (12,864) 13,679 ----------------------------------------------------- NET CASH PROVIDED BY OPERATIONS 6,307,734 7,210,599 8,552,142 ----------------------------------------------------- CASH FLOWS FROM INVESTING ACTIVITIES: Expenditure on property, plant and equipment (including advances) (1,521,253) (1,977,203) (2,433,022) Proceeds from sale of property, plant and equipment 84,634 79,012 194,650 Purchase of investments (30,243,692) (6,027,392) (5,709,805) Inter Corporate deposits placed / matured 1,828,853 5,800 (963,300) Certificate of Deposits with foreign banks 4,805,610 (2,783,814) (1,961,111) Sale / maturities on Investments 26,236,496 77,029 145,468 Payment for acquisition, net of cash acquired (5,085,443) - - Divided received 20,737 61,773 284,645 Interest received 207,637 585,553 560,355 ----------------------------------------------------- NET CASH USED IN INVESTING ACTIVITIES (3,666,421) (9,979,242) (9,882,120) ----------------------------------------------------- CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from exercise of Stock Option Plan grants 88,515 7,064 35,479 Share application money pending allotment (2,399) - - Dividends paid (232,466) (128,071) (128,071) Proceeds from issuance / (repayment) of borrowings (221,863) (174,381) (133,886) ----------------------------------------------------- Net cash provided by/(used in) financing activities (368,213) (295,388) (226,478) ----------------------------------------------------- Net increase/ (decrease) in cash and cash equivalents during the year 2,273,100 (3,064,031) (1,556,456) Cash and cash equivalents at the beginning of the period 3,031,909 4,588,365 4,588,365 ----------------------------------------------------- Cash and cash equivalents at the end of the period 5,305,009 1,524,334 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 President - Vice President - Finance Legal & Company Secretary Bangalore, January 17, 2003 WIPRO LIMITED AUDITOR'S CERTIFICATE We have examined the above cash flow statement of Wipro Limited - consolidated for the Nine months period ended December 31, 2002. This statement is based on and in agreement with the corresponding Profit and Loss Account and Balance Sheet of the Company for the Nine month period ended December 31, 2002, covered by our report of even dated. FOR N M RAIJI & CO., Chartered Accountants J M GANDHI Partner Mumbai, January 17, 2003.