exv19w1

Exhibit 19.1

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED INTERIM BALANCE SHEET


			*(Rs in Million)*
			As of September 30,				As of March 31,
	Schedule		2009		2008		2009


SOURCES OF FUNDS

SHAREHOLDERS’ FUNDS
Share capital		1		2,931		2,926		2,928
Share application money pending allotment				16		21		15
Reserves and surplus		2		160,784		123,336		133,356

				163,731		126,283		136,299


LOAN FUNDS
Secured loans		3		2,434		2,088		1,858
Unsecured loans		4		41,022		51,689		55,034

				43,456		53,777		56,892


Minority interest				373		169		237

				207,560		180,229		193,428


APPLICATION OF FUNDS

GOODWILL				54,609		48,977		56,521

FIXED ASSETS AND INTANGIBLE ASSETS
Gross block		5		81,970		65,260		75,353
Less: Accumulated depreciation and amortisation				39,700		32,367		36,342

Net block				42,270		32,893		39,011
Capital work-in-progress and advances				10,632		15,692		13,552

				52,902		48,585		52,563


INVESTMENTS		6		44,601		41,451		18,096

DEFERRED TAX ASSET (NET)				644		638		684

CURRENT ASSETS, LOANS AND ADVANCES
Inventories		7		6,735		8,669		7,586
Sundry debtors		8		46,055		50,343		48,899
Cash and bank balances		9		31,159		20,157		49,117
Loans and advances		10		45,837		39,073		45,400

				129,786		118,242		151,002


LESS: CURRENT LIABILITIES AND PROVISIONS
Liabilities		11		64,102		68,159		67,989
Provisions		12		10,880		9,505		17,449

				74,982		77,664		85,438

NET CURRENT ASSETS				54,804		40,578		65,564

				207,560		180,229		193,428

Notes to condensed consolidated interim financial statements		18

The schedules referred to above form an integral part of the condensed consolidated interim balance sheet


	For and on behalf of the Board of Directors

for B S R & Co.	Azim Premji	Girish S Paranjpe	Suresh Vaswani	Suresh C Senapaty
Chartered Accountants	Chairman	Jt CEO, IT Business & Director	Jt CEO, IT Business & Director	Chief Financial Officer & Director

Akeel Master	B C Prabhakar		N Vaghul	V Ramachandran
Partner	Director		Director	Company Secretary
Membership No. 046768
Bangalore
October 27, 2009

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED INTERIM PROFIT AND LOSS ACCOUNT


				*(Rs in Million except share data)*
										Six months ended September						Year ended
				Quarter ended September 30,						30,						March 31,
	Schedule			2009			2008			2009			2008			2009
INCOME
Gross sales and services					69,131			65,655			133,460			126,353			258,050
Less: Excise duty					200			301			384			635			1,055

Net sales and services					68,931			65,354			133,076			125,718			256,995
Other income, net		13			1,313			754			977			1,121			2,621

					70,244			66,108			134,053			126,839			259,616


EXPENDITURE
Cost of sales and services		14			47,419			45,954			90,717			87,955			179,246
Selling and marketing expenses		15			4,684			4,515			9,002			8,867			17,796
General and administrative expenses		16			4,271			3,670			7,953			6,905			14,978
Interest		17			231			612			759			1,248			2,400

					56,605			54,751			108,431			104,975			214,420


PROFIT BEFORE TAXATION					13,639			11,357			25,622			21,864			45,196
Provision for taxation including fringe benefit tax		18	(9)		2,085			1,659			3,948			3,185			6,460

Profit before minority interest / share in earnings of associates					11,554			9,698			21,674			18,679			38,736

Minority interest					(58	)		(22	)		(107	)		(34	)		(99	)
Share in earnings of associates					121			106			206			213			362

PROFIT FOR THE PERIOD					11,617			9,782			21,773			18,858			38,999

Appropriations
Proposed dividend					—			—			—			—			5,860
Tax on dividend					—			—			—			—			996

TRANSFER TO GENERAL RESERVE					11,617			9,782			21,773			18,858			32,143


EARNINGS PER SHARE — EPS
Equity shares of par value Rs. 2/- each
Basic (in Rs.)					7.97			6.73			14.95			12.97			26.81
Diluted (in Rs.)					7.93			6.70			14.86			12.92			26.72

Number of shares for calculating EPS
Basic					1,456,876,825			1,454,349,548			1,456,548,439			1,453,986,894			1,454,662,502
Diluted					1,465,487,352			1,460,517,330			1,464,737,800			1,460,121,584			1,459,352,869

Notes to condensed consolidated interim financial statements		18

The schedules referred to above form an integral part of the condensed consolidated interim profit and loss account


	For and on behalf of the Board of Directors

for B S R & Co.	Azim Premji	Girish S Paranjpe	Suresh Vaswani	Suresh C Senapaty
Chartered Accountants	Chairman	Jt CEO, IT Business & Director	Jt CEO, IT Business & Director	Chief Financial Officer & Director

Akeel Master	B C Prabhakar		N Vaghul	V Ramachandran
Partner	Director		Director	Company Secretary
Membership No. 046768
Bangalore
October 27, 2009

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

CONDESED CONSOLIDATED INTERIM CASH FLOW STATEMENT


	*(Rs in Million)*
	Quarter Ended September 30,						Six Months Ended September 30,						Year ended March 31,
	2009			2008			2009			2008			2009


A. Cash flows from operating activities:

Profit before tax		13,639			11,357			25,622			21,864			45,196

Adjustments:

Depreciation and amortisation		2,016			1,661			3,814			3,239			6,864
Amortisation of stock compensation		389			455			775			888			1,767
Exchange differences — net		113			667			(429	)		1,816			3,702
Impact of cash flow hedges		1,747			(1,594	)		2,735			(2,046	)		(12,196	)
Interest on borrowings		231			612			759			1,248			2,400
Dividend / interest income — net		(853	)		(1,023	)		(1,853	)		(1,941	)		(3,664	)
(Profit) / loss on sale of investments		(319	)		(428	)		(314	)		(570	)		(681	)
Gain on sale of fixed assets		(6	)		(4	)		(12	)		(9	)		(28	)
Working capital changes :
Sundry debtors and unbilled		(4,035	)		(7,110	)		(787	)		(12,541	)		(13,152	)
Loans and advances		(1,090	)		(1,543	)		812			(3,523	)		(1,622	)
Inventories		56			(909	)		851			(2,005	)		(922	)
Current liabilities and provisions		2,933			7,353			1,649			11,345			16,233

Net cash generated from operations		14,821			9,494			33,622			17,765			43,897
Direct taxes (paid)/refund-net		(2,117	)		(2,386	)		(4,325	)		(959	)		(7,798	)

Net cash generated by operating activities		12,704			7,108			29,297			16,806			36,099


B. Cash flows from investing activities:

Acquisition of fixed assets (including capital advances)		(2,714	)		(4,344	)		(5,236	)		(8,552	)		(16,746	)
Proceeds from sale of fixed assets		116			72			180			163			358
Purchase of investments		(98,591	)		(77,544	)		(192,534	)		(208,640	)		(342,717	)
Proceeds from sale / maturity of investments		94,669			84,085			166,547			183,997			341,687
Intercorporate deposits		2,000			—			4,250			(250	)		(3,750	)
Payment for acquisition of businesses		(461	)		(1,110	)		(461	)		(1,192	)		(6,679	)
Dividend / interest income received		1,486			1,023			2,191			1,941			3,664

Net cash (used in)/generated by investing activities		(3,495	)		2,182			(25,063	)		(32,533	)		(24,183	)


C. Cash flows from financing activities:

Proceeds from exercise of employee stock options		2			2			4			50			63
Share application money pending allotment		1			21			1			21			15
Interest paid on borrowings		(348	)		(612	)		(746	)		(1,248	)		(2,400	)
Dividends paid (including distribution tax)		(6,822	)		(6,828	)		(6,822	)		(6,828	)		(6,829	)
Repayment of borrowings / loans		(23,515	)		(17,558	)		(35,560	)		(33,061	)		(80,229	)
Proceeds from borrowings / loans		16,343			17,426			21,271			37,208			86,648
Proceeds from issuance of shares by subsidiary		64			—			64			—			—

Net cash generated by / (used in) financing activities		(14,275	)		(7,549	)		(21,788	)		(3,858	)		(2,732	)

Net (decrease) / increase in cash and cash equivalents during the period		(5,066	)		1,741			(17,554	)		(19,585	)		9,184
Cash and cash equivalents at the beginning of the period		36,512			18,348			49,117			39,270			39,270
Effect of exchange rate changes on cash balance		(287	)		68			(404	)		472			663


Cash and cash equivalents at the end of the period		31,159			20,157			31,159			20,157			49,117


	For and on behalf of the Board of Directors

for B S R & Co.	Azim Premji	Girish S Paranjpe	Suresh Vaswani	Suresh C Senapaty
Chartered Accountants	Chairman	Jt CEO, IT Business &	Jt CEO, IT Business &	Chief Financial Officer
		Director	Director	& Director

Akeel Master	B C Prabhakar		N Vaghul	V Ramachandran
Partner	Director		Director	Company Secretary
Membership No. 046768
Bangalore
October 27, 2009

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES
SCHEDULES TO CONDENSED CONSOLIDATED INTERIM BALANCE SHEET


	*(Rs in Million except share data)*
	As of September 30,			As of March 31,
	2009			2008			2009

SCHEDULE 1 SHARE CAPITAL
Authorised capital
1,650,000,000 (September 30, 2008 & March 31, 2009: 1,650,000,000) equity shares of Rs 2 each		3,300			3,300			3,300
25,000,000 (September 30, 2008 & March 31, 2009: 25,000,000) 10.25 % redeemable cumulative preference shares of Rs. 10 each		250			250			250

		3,550			3,550			3,550

Issued, subscribed and paid-up capital [Refer note 18 (2)]
1,466,277,426 (September 30, 2008: 1,463,003,208, March 31, 2009: 1,464,980,746) equity shares of Rs 2 each		2,933			2,926			2,930
Less: 968,803 (September 30, 2008: Nil, March 31, 2009: 968,803) equity shares issued to and held by controlled trust		(2	)		—			(2	)

		2,931			2,926			2,928


SCHEDULE 2 RESERVES AND SURPLUS
Capital reserve
Balance brought forward from previous year		1,144			1,144			1,144
Addition during the period		—			—			—

		1,144			1,144			1,144
Securities premium account
Balance brought forward from previous year		27,279			25,373			25,373
Add: Shares issued to controlled trust		—			—			540
Add: Exercise of stock options by employees		773			763			1,366

		28,052			26,136			27,279
Less: Shares issued to controlled trust [Refer note 18(2)]		(540	)		—			(540	)

		27,512			26,136			26,739
Translation reserve
Balance brought forward from previous year		497			(10	)		(10	)
Movement during the period		441			2,331			507

		938			2,321			497
Restricted stock units reserve [Refer note 18(8)]
Employee stock options outstanding		5,607			7,544			6,693
Less: Deferred employee compensation expense		3,290			5,516			4,380

		2,317			2,028			2,313
General reserve
Balance brought forward from previous year		118,813			86,764			86,764
Additions [Refer note 18 (3) (ii)]		20,709			18,766			32,049

		139,522			105,530			118,813
Hedging reserve [Refer note 18(5)]
Balance brought forward from previous year		(16,150	)		(1,097	)		(1,097	)
Movement during the period		5,501			(12,726	)		(15,053	)

Unrealised loss on cash flow hedging derivatives, net		(10,649	)		(13,823	)		(16,150	)

Summary of reserves and surplus
Balance brought forward from previous year		133,356			113,991			113,991
Movement during the period		27,428			9,345			19,365

		160,784			123,336			133,356

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES
SCHEDULES TO CONDENSED CONSOLIDATED INTERIM BALANCE SHEET

(Rs in Million)

As of September 30,

As of March 31,

2009

2008

2009

SCHEDULE 3 SECURED LOANS

Term loans ¹

611

337

233

Cash credit ¹

1,074

625

643

Finance lease obligation ¹

749

1,126

982

2,434

2,088

1,858


¹		Term loans and cash credit facility are secured by hypothecation of stock-in-trade, book debts, immovable/movable properties and other assets.


SCHEDULE 4 UNSECURED LOANS
External commercial borrowings	18,716	15,527	18,052
Borrowing from banks	21,255	35,635	35,829
Interest free loan from state governments	37	39	37
Others	1,014	488	1,116

	41,022	51,689	55,034

SCHEDULE 5 FIXED ASSETS


*(Rs in Million)*
PARTICULARS	GROSS BLOCK												ACCUMULATED DEPRECIATION AND AMORTISATION												NET BLOCK
															Depreciation
															and
	As of April				Effect of						As of September		As of April		amortisation		Effect of			Deductions /			As of September		As of September		As of March
	1, 2009		Additions		Translation*			Deductions			30, 2009		1, 2009		for the period		Translation*			adjustments			30, 2009		30, 2009		31, 2009

(a) Tangible fixed assets
Land (including leasehold)		4,052		66		1			—			4,119		19		51		—			—			70		4,049		4,033
Buildings		15,329		2,694		9			—			18,032		1,659		193		9			—			1,861		16,171		13,670
Plant & machinery^#		42,037		3,266		(130	)		(305	)		44,868		27,178		2,708		(32	)		(193	)		29,661		15,207		14,859
Furniture, fixture and equipments		8,160		1,138		27			(108	)		9,217		4,619		520		17			(91	)		5,065		4,152		3,541
Vehicles		2,864		241		4			(179	)		2,930		1,759		262		4			(113	)		1,912		1,018		1,105
(b) Intangible fixed assets
Technical know-how		384		8		13			—			405		384		1		13			—			398		7		—
Brands, patents, trade marks and rights		2,527		20		(148	)		—			2,399		724		79		(70	)		—			733		1,666		1,803

		75,353		7,433		(224	)		(592	)		81,970		36,342		3,814		(59	)		(397	)		39,700		42,270		39,011

Previous year - 31 March 2009 ^@		56,280		17,607		2,265			(799	)		75,353		28,067		6,864		1,212			199			36,342		39,011


*		Represents translation of fixed assets of non-integral foreign entities into Indian Rupee

#		Plant and machinery includes computers and computer software

@		Additions include Gross Block of Rs 859 and adjustments include Accumulated depreciation of Rs 613 in respect of assets of entities acquired during the 31 March 2009.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES
SCHEDULES TO CONDENSED CONSOLIDATED INTERIM BALANCE SHEET

(Rs in Million)

As of September 30,

As of March 31,

2009

2008

2009

SCHEDULE 6 INVESTMENTS

Long term — unquoted

Investment in associates [Refer note 18(6)]

Wipro GE Healthcare Private Limited ²

1,843

1,521

1,670

Other investments [Refer note 18(14)]

592

362

343

2,435

1,883

2,013

Current investments — quoted [Refer note 18(14)]

Investments in Indian money market mutual funds

41,386

39,568

15,136

Current investments — unquoted [Refer note 18(14)]

Certificates of deposit

780

—

947

42,166

39,568

16,083

44,601

41,451

18,096


²		Equity investments in this company carry certain restrictions on transfer of shares as provided for in the shareholders’ agreements


SCHEDULE 7 INVENTORIES
Finished goods	2,819	3,866	3,678
Raw materials	2,359	3,369	2,440
Stock in process	674	823	694
Stores and spares	883	611	774

	6,735	8,669	7,586


SCHEDULE 8 SUNDRY DEBTORS
*Unsecured*
Debts outstanding for a period exceeding six months
Considered good	6,682	3,486	5,832
Considered doubtful	2,300	1,350	1,433

	8,982	4,836	7,265

Other debts
Considered good	39,373	46,857	43,067
Considered doubtful	—	—	486

	48,355	51,693	50,818

Less: Provision for doubtful debts	2,300	1,350	1,919

	46,055	50,343	48,899


SCHEDULE 9 CASH AND BANK BALANCES
Balances with bank:
In current account	14,746	8,181	22,264
In deposit account	15,517	11,683	26,173
Cash and cheques on hand	896	293	680

[Refer note 18(13)]	31,159	20,157	49,117

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES
SCHEDULES TO CONDENSED CONSOLIDATED INTERIM BALANCE SHEET


	*(Rs in Million)*
	As of September 30,		As of March 31,
	2009		2008		2009

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
- Prepaid expenses		4,531		4,700		4,059
- Advance to suppliers		485		1,576		706
- Employee travel and other advances		1,159		1,500		1,359
- Others		2,601		4,190		3,500

		8,776		11,966		9,624
Considered doubtful		216		159		160

		8,992		12,125		9,784
Less: Provision for doubtful advances		216		159		160

		8,776		11,966		9,624


Other deposits		1,616		1,484		1,586
Derivative assets		2,695		3,390		1,421
Finance lease receivables		3,604		1,572		3,605
Advance income taxes		11,429		6,354		9,952
Inter corporate deposits		—		750		4,250
Balances with excise and customs		994		754		854
Unbilled revenues		16,723		12,803		14,108

		45,837		39,073		45,400


SCHEDULE 11 LIABILITIES
Accrued expenses		24,804		21,173		23,342
Statutory liabilities		3,708		3,329		3,455
Sundry creditors		20,955		18,753		19,437
Unearned revenues		4,258		5,846		6,734
Advances from customers		2,981		1,984		2,428
Derivative liabilities		7,018		17,055		12,257
Unclaimed dividends		18		19		17
Others		360		—		319

		64,102		68,159		67,989


SCHEDULE 12 PROVISIONS
Employee retirement benefits		2,818		2,848		3,111
Warranty		958		949		989
Provision for tax		7,104		5,708		6,493
Proposed dividend		—		—		5,860
Tax on proposed dividend		—		—		996

		10,880		9,505		17,449

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES
SCHEDULES TO CONDENSED CONSOLIDATED INTERIM PROFIT AND LOSS ACCOUNT


	*(Rs in Million)*
													Year ended
	Quarter ended September 30,						Six months ended September 30,						March 31,

	2009			2008			2009			2008			2009


SCHEDULE 13 OTHER INCOME, NET

Income from current investments
- Dividend on mutual fund units		410			620			670			1,194			2,265
- Profit/ (loss) on sale of investments		319			428			314			570			681
Interest on debt instruments and others		443			403			1,183			747			1,964
Exchange differences, net		240			(281	)		(1,166	)		(978	)		(1,553	)
Exchange fluctuations on foreign currency borrowings, net		(330	)		(539	)		(408	)		(678	)		(1,465	)
Miscellaneous income		231			123			384			266			729

		1,313			754			977			1,121			2,621


SCHEDULE 14 COST OF SALES AND SERVICES
Employee compensation		22,480			22,202			45,572			43,783			91,293
Raw materials, finished and process stocks consumed		14,400			13,112			24,605			23,781			45,797
Sub contracting / technical fees / third party application		3,717			3,562			7,110			6,799			14,184
Travel		1,226			1,769			2,513			3,301			6,684
Depreciation and amortisation		1,844			1,526			3,486			2,997			6,367
Repairs		1,034			781			1,714			1,458			3,142
Communication		707			591			1,445			1,182			2,610
Power and fuel		478			472			925			896			1,863
Outsourced technical services		308			369			703			703			1,442
Rent		469			398			1,004			770			1,667
Stores and spares		155			176			287			332			602
Insurance		102			88			175			187			372
Rates and taxes		34			68			125			148			313
Miscellaneous expenses		465			840			1,053			1,618			2,910

		47,419			45,954			90,717			87,955			179,246

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES
SCHEDULES TO CONDENSED CONSOLIDATED INTERIM PROFIT AND LOSS ACCOUNT


	*(Rs in Million)*
									Year ended
	Quarter ended September 30,				Six months ended September 30,				March 31,

	2009		2008		2009		2008		2009


SCHEDULE 15 SELLING AND MARKETING EXPENSES
Employee compensation		2,242		2,215		4,245		4,260		8,982
Advertisement and sales promotion		1,212		1,025		2,273		1,956		3,470
Travel		194		294		397		601		1,037
Carriage and freight		261		250		482		515		1,005
Sales commission		195		211		430		397		886
Rent		93		85		236		219		477
Communication		104		101		189		181		396
Conveyance		35		38		71		79		157
Depreciation and amortisation		80		77		135		147		265
Repairs		33		14		48		43		123
Insurance		13		4		28		15		26
Rates and taxes		15		11		26		17		59
Miscellaneous expenses		207		190		442		437		913

		4,684		4,515		9,002		8,867		17,796


SCHEDULE 16 GENERAL AND ADMINISTRATIVE EXPENSES
Employee compensation		1,942		1,659		3,813		3,205		6,790
Travel		270		380		609		749		1,435
Legal and professional charges		556		363		915		683		1,502
Repairs and mantainance		308		243		479		397		780
Provision for doubtful debts		387		160		482		267		939
Staff recruitment		68		138		138		219		411
Manpower outside services		64		90		124		147		264
Depreciation and amortisation		92		58		193		95		232
Rates and taxes		63		11		96		20		72
Insurance		33		32		74		58		125
Rent		138		128		271		189		382
Auditors’ remuneration		6		6		12		12		23
Miscellaneous expenses		344		402		747		864		2,023

		4,271		3,670		7,953		6,905		14,978


SCHEDULE 17 INTEREST
Cash credit and others		231		612		759		1,248		2,400

		231		612		759		1,248		2,400

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

SCHEDULE 18 — NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

Company overview

Wipro Limited (Wipro or the Parent), together with its subsidiaries and associates (collectively, the Company or the group) is a leading India based provider of IT Services, including Business Process Outsourcing (BPO) services, globally. Further, Wipro has other businesses such as IT Products, Consumer Care and Lighting and Infrastructure engineering. Wipro is headquartered in Bangalore, India.

1.		Significant accounting policies

i.		Basis of preparation of financial statements

		The condensed consolidated interim financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention and on the accrual basis except for certain financial instruments, which are measured on a fair value basis . GAAP comprises Accounting Standards (AS), issued by the Institute of Chartered Accountants of India (ICAI) and other generally accepted accounting principles in India.

		The condensed consolidated interim financial statements for the quarter and six months ended September 30, 2009 have been prepared in accordance with the recognition, measurement and disclosure provisions of AS 25, Interim Financial Reporting, issued pursuant to the Companies (Accounting Standards) Rules, 2006 and by the ICAI. These financial statements should be read in conjunction with the consolidated annual financial statements of the Company for the year ended as at March 31, 2009. The accounting policies followed in preparation of these financial statements are consistent with those followed in the preparation of the consolidated annual financial statements.

ii.		Principles of consolidation

		The condensed consolidated interim financial statements include the financial statements of Wipro and all its subsidiaries, which are more than 50% owned or controlled.

		The financial statements of the parent company and its majority owned / controlled subsidiaries have been combined on a line by line basis by adding together the book values of all items of assets, liabilities, incomes and expenses after eliminating all inter -company balances / transactions and resulting unrealized gain / loss.

		The condensed consolidated interim financial statements are prepared using uniform accounting policies for similar transactions and other events in similar circumstances.

iii.		Use of estimates

		The preparation of financial statements in accordance with the generally accepted accounting principles requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Estimates and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimate is recognised in the period in which the estimates are revised and in any future period affected .

iv.		Fixed assets, intangible assets and capital work-in-progress

		Fixed assets are stated at historical cost less accumulated depreciation. Costs include expenditure directly attributable to the acquisition of the asset. Borrowing costs directly attributable to the construction or production of qualifying assets are capitalized as part of the cost Intangible assets are stated at the consideration paid for acquisition less accumulated amortization.

		Advances paid towards the acquisition of fixed assets outstanding as of each balance sheet date and the cost of fixed assets not ready for use before such date are disclosed under capital work -in-progress.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

v.		Investments

		Long term investments (other than investment in associate) are stated at cost less any other than temporary decline in the value of such investments. Current investments are valued at lower of cost and fair value determined by category of investment. The fair value is taken as quoted market price adjusted for cost of disposal.

		Investment in associate is accounted under the equity method.

vi.		Inventories

		Inventories are valued at lower of cost and net realizable value, including necessary provision for obsolescence. Cost is determined using the weighted average method.

vii.		Provisions and contingent liabilities

		Provisions are recognised when the Company has a present obligation as a result of past event, it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate can be made of the amount of obligation.

		A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

		The Company recognizes provision for onerous contracts based on the estimate of excess of unavoidable costs of meeting obligations under the contracts over the expected economic benefits.

viii.		Revenue recognition

		Services:

		Revenue from Software development services comprises revenue from time and material and fixed -price contracts. Revenue from time and material contracts is recognised as related services are performed. Revenue from fixed-price, fixed-time frame contracts is generally recognised in accordance with the “Percentage of Completion” method.

		Revenues from BPO services are derived from both time-based and unit-priced contracts. Revenue is recognised as the related services are performed, in accordance with the specific terms of the contract with the customers.

		Revenue from application maintenance services is recognised over the period of the contract.

		Revenue from customer training, support and other services is recognised as the related services are performed.

		Provision for estimated losses, if any, on incomplete contracts are recorded in the period in which such losses become probable based on the current contract estimates.

		‘Unbilled revenues’ included in loans and advances represent cost and earnings in excess of billings as at the balance sheet date. ‘Unearned revenues’ included in current liabilities represent billing in excess of revenue recognised.

		Products:

		Revenue from sale of products is recognised when the product has been delivered, in accordance with the sales contract. Revenues from product sales are shown as net of excise duty, sales tax separately charged and applicable discounts.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

		Other income:

		Agency commission is accrued when shipment of consignment is dispatched by the principal.

		Profit on sale of investments is recorded upon transfer of title by the Company. It is determined as the difference between the sales price and carrying amount of the related investment.

		Interest is recognised using the time-proportion method, based on rates implicit in the transaction.

		Dividend income is recognised where the Company’s right to receive dividend is established.

		Export incentives are accounted on accrual basis and include estimated realizable values/ benefits from special import licenses and advance licenses.

ix.		Leases

		Assets acquired under finance leases are recognised at the lower of the fair value of the leased assets at inception and the present value of minimum lease payments. Lease payments are apportioned between the finance charge and the outstanding liability. The finance charge is allocated to periods during the lease term at a constant periodic rate of interest on the remaining balance of the liability.

		Lease rentals in respect of assets taken under operating leases are charged to profit and loss account on a straight line basis over the lease term.

		Inventories given under finance leases, are recognised at an amount equal to the net investment in the lease and the finance income is based on a constant rate of return on the outstanding net investment.

x.		Foreign currency transactions

		Transaction:

		Foreign currency transactions are accounted in the books of accounts at the average rate for the month.

		The difference between the rate at which foreign currency transactions are accounted and the rate at which they are realized is recognised in the profit and loss account.

		Translation:

		Monetary foreign currency assets and liabilities at period-end are translated at the closing rate. The difference arising from the translation is recognised in the profit and loss account, except for the exchange difference arising on monetary items that qualify as hedging instruments in a cash flow hedge or hedge of a net investment in a non-integral foreign operation. In such cases the exchange difference is initially recognised in hedging reserve or translation reserve, respectively. Such exchange differences are subsequently recognised in the profit and loss account on occurrence of the underlying hedged transaction or on disposal of the investment, respectively.

		Integral operations:

		Monetary assets and liabilities are translated at the exchange rate prevailing at the date of the balance sheet. Non-monetary items are translated at the historical rate. The items in the profit and loss account are translated at the average exchange rate during the period. The differences arising out of the translation are recognised in the profit and loss account.

		Non-integral operations:

		Assets and liabilities are translated at the exchange rate prevailing at the date of the balance sheet. The items in the profit and loss account are translated at the average exchange rate during the period. The differences arising out of the translation are transferred to translation reserve.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

xi.		Financial Instruments

		Financial instruments are recognised when the Company becomes a party to the contractual provisions of the instrument.

		Derivative instruments and Hedge accounting:

		The Company is exposed to foreign currency fluctuations on foreign currency assets, liabilities, net investment in a non-integral foreign operation and forecasted cash flows denominated in foreign currency. The Company limits the effects of foreign exchange rat e fluctuations by following established risk management policies including the use of derivatives. The Company enters into derivative financial instruments, where the counterparty is a bank.

		The Company early adopted AS 30 and the limited revisions to other accounting standards which come into effect upon adoption of AS 30 from April 1, 2008. In accordance with the recognition and measurement principles set out in AS 30, changes in fair value of derivative financial instruments designated as cash flow hedges are recognised directly in shareholders’ funds and reclassified into the profit and loss account upon the occurrence of the hedged transaction. The Company also designates derivative financial instruments as hedges of net investment in non -integral foreign operation. The portion of the changes in fair value of derivative financial instruments determined to be an effective hedge are recognised in the shareholders’ funds and would be recognised in the profit and loss account upon sale or disposal of related non-integral foreign operation. Changes in fair value relating to the ineffective portion of the hedges and derivatives not designated as hedges are recognised in the profit and loss account as they arise.

		AS 30 states that particular sections of other accounting standards; AS 4, Contingencies and Events Occurring after Balance Sheet Date, to the extent it deals with contingencies, AS 11 (revised 2003), The Effects of Changes in Foreign Exchange Rates, to the extent it deals with the ‘forward exchange contracts’ and AS 13, Accounting for Investments, except to the extent it relates to accounting for investment properties, will stand withdrawn only from the date AS 30 becomes mandatory (April 1, 2011 for the Company). Accordingly, the Company continues to comply with the guidance in AS 4 — relating to contingencies, AS 11 — relating to forward contracts and AS 13 until AS 30 becomes mandatory.

		Non-Derivative Financial Instruments

		A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial assets of the Company mainly include cash and bank balances, sundry debtors, unbilled revenues, finance lease receivables, employee travel and other advances, other loans and advances and derivative financial instruments with a positive fair value. Financial liabilities of the Company mainly comprise secured and unsecured loans, sundry creditors, accrued expenses and derivative financial instruments with a negative fair value. Financial assets / liabilities are recognised on the balance sheet when the Company becomes a party to the contractual provisions of the instrument. Financial assets are derecognised when all of risks and rewards of the ownership have been transferred. The transfer of risks and rewards is evaluated by comparing the exposure, before and after the transfer, with the variability in the amounts and timing of the net cash flows of the transferred assets.

		The Company measures the financial assets and liabilities, except for derivative financial assets and liabilities at amortized cost using the effective interest method. The Company measures the short -term payables and receivables with no stated rate of interest at original invoice amount, if the effect of discounting is immaterial. Non-interest-bearing deposits are discounted to their present value.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

xii.		Depreciation and amortisation

		Depreciation is provided on straight line method based on the estimated useful life of the asset. Management estimates the useful life of various assets as follows:


Nature of asset		Life of asset
Building		30 — 60 years
Plant and machinery		5 — 21 years
Office equipment		3 — 10 years
Vehicles		4 years
Furniture and fixtures		3 — 10 years
Data processing equipment and software		2 — 6 years

Fixed assets individually costing Rs 5,000/- or less are depreciated at 100%.

Assets under capital lease are amortised over their estimated useful life or the lease term, whichever is lower. Intangible assets are amortized over their estimated useful life on a straight line basis. For various brands acquired by the Company, the estimated useful life has been determined ranging between 20 to 25 years based on expected life, performance, market share, niche focus and longevity of the brand. Accordingly, such intangible assets are being amortised over the determined useful life. Payments for leasehold land are amortised over the period of lease.

xiii.		Impairment of assets

		Financial assets:

		The Company assesses at each balance sheet date whether there is any objective evidence that a financial asset or group of financial assets is impaired. If any such indication exists, the Company estimates the amount of impairment loss. The amount of loss for short-term receivables is measured as the difference between the assets carrying amount and undiscounted amount of future cash flows. Reduction, if any, is recognised in the profit and loss account. If at the balance sheet date there is any indication that if a previously assessed impairment loss no longer exists, the recogni sed impairment loss is reversed, subject to maximum of initial carrying amount of the short-term receivable.

		Other than financial assets:

		The Company assesses at each balance sheet date whether there is any indication that a non-financial asset including goodwill may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs to is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the profit and loss account. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost. In respect of goodwill , the impairment loss will be reversed only when it was caused by specific external events and their effects have been reversed by subsequent external events.

xiv.		Employee benefits

		Provident fund:

		Employees receive benefits from a provident fund. The employee and employer each make monthly contributions to the plan equal to 12% of the covered employee’s salary. A portion of the contribution is made to the provident fund trust managed by the Company, while the remainder of the contribution is made to the Government’s provident fund.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

		Compensated absences:

		The employees of the Company are entitled to compensated absence. The employees can carry-forward a portion of the unutilized accrued compensated absence and utilize it in future periods or receive cash compensation at retirement or termination of employment for the u nutilized accrued compensated absence. The Company records an obligation for compensated absences in the period in which the employee renders the services that increase this entitlement. The Company measures the expected cost of compensated absence as the additional amount that the Company expects to pay as a result of the unused entitlement that has accumulated at the balance sheet date. Long term compensated absences is accrued based on actuarial valuation at the balance sheet date carried out by an indep endent actuary.

		Gratuity:

		In accordance with applicable Indian laws, the Company provides for gratuity, a defined benefit retirement plan (Gratuity Plan) covering eligible employees. The Gratuity Plan provides a lump sum payment to vested employees, at retirement or termination of employment, an amount based on the respective employee’s last drawn salary and the years of employment with the Company. Liability with regard to gratuity plan is accrued based on actuarial valuations at the balance sheet date, carried out by an independent actuary. Actuarial gain or loss is recognised immediately in the statement of profit and loss as income or expense. The Company has an employees’ gratuity fund managed by the Life Insurance Corporation of India (LIC) and HDFC Standard Life.

		Superannuation:

		The employees of the Company also participate in a defined contribution plan maintained by the Company. This plan is administered by the LIC and ICICI Prudential Insurance Company Limited. The Company makes annual contributions based on a specified percentage of each covered employee’s salary.

xv.		Employee stock options

		The Company determines the compensation cost based on the intrinsic value method. The compensation cost is amortised on a straight line basis over the vesting peri od.

xvi.		Taxes

		Income tax:

		The current charge for income taxes is calculated in accordance with the relevant tax regulations.

		Deferred tax assets and liabilities are recognised for the future tax consequences attributable to timing differences that result between the profit offered for income taxes and the profit as per the financial statements by each entity in the Group.

		Deferred taxes are recognised in respect of timing differences which originate during the tax holiday period but reverse after the tax holiday period. For this purpose, reversal of timing difference is determined using first in first out method.

		Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. The effect on deferred tax assets and liabilities of a change in tax rates is recognised in the period that includes the enactment/substantive enactment date.

		Deferred tax assets on timing differences are recognised only if there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. However, deferred tax assets on the timing differences when unabsorbed depreciation and losses carried forward exist, are recognised only to the extent that there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

		Deferred tax assets are reassessed for the appropriateness of their respective carrying amounts at each balance sheet date.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

		The Company offsets, on a year on year basis, the current tax assets and liabilities, where it has a legally enforceable right and where it intends to settle such assets and liabilities on a net basis.

xvii.		Earnings per share

		Basic:

		The number of equity shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period excluding equity shares held by controlled trust.

		Diluted:

		The number of equity shares used in computing diluted earnings per share comprises the weighted average equity shares considered for deriving basic earnings per share, and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares.

		Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. The number of equity shares and potentially dilutive equity shares are adjusted for any stock splits and bonus shares issued.

xviii.		Cash flow statement

		Cash flows are reported using the indirect method, whereby net profits before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the Company are segregated.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

2.		Share capital

		The following are the details for 1,466,277,426 (September 30, 2008: 1,463,003,208, March 31, 2009: 1,464,980,746) equity shares as of September 30, 2009:


No. of shares		Description

1,398,430,659		Equity shares / American Depository Receipts (ADRs) ( September 30, 2008 & March 31, 2009: 1,398,430,659) have been allotted as fully paid bonus shares /ADRs by capitalization of Securities premium a ccount and Capital redemption reserve.

1,325,525		Equity shares (September 30, 2008 and March 31, 2009: 1,325,525) have been allotted as fully paid-up, pursuant to scheme of amalgamation, without payment being received in cash.

968,803		Equity shares (September 30, 2008: Nil, March 31, 2009: 968,803) allotted to the Wipro Inc Trust, the sole beneficiar y of which is Wipro Inc, wholly owned subsidiary of the Company, without payment being received in cash, in consideration of acquisition of inter -company investments.

3,162,500		Equity shares (September 30, 2008 and March 31, 2009: 3,162,500) representing American Depository Receipts issued during 2000 -2001 pursuant to American Depository offering by the Company.

61,464,939		Equity shares (September 30, 2008: 59,159,524, March 31, 2009: 60,168,259) issued pursuant to Employee Stock Option Plan.

3.		Note on reserves

i)		Restricted stock units reserve includes Deferred Employee Compensation, which represents future charge to the profit and loss account and employee stock options outstanding to be treated as securities premium at the time of allotment of shares.

ii)		Additions to General Reserve include:


*(Rs in Million)*
							For the
	Six months ended						year ended
	September			September			March
Particulars	30,2009			30,2008			31,2009

Transfer from Profit and Loss Account		21,773			18,858			32,143
Adjustment on adoption of AS 30		—			(89	)		(89	)
Additional purchase consideration [refer note 18(15)]		(1,097	)		—			—
Dividend paid to Wipro Equity Reward Trust and Wipro Inc		36			—			—
Trust
Others		(3	)		(3	)		(5	)

		20,709			18,766			32,049

4.		The Company has adopted AS 30 and the limited revisions to other accounting standards which come into effect upon adoption of AS 30.

		AS 30 states that particular sections of other accounting standards; AS 4, Contingencies and Events Occurring after Balance sheet Date, to the extent it deals with contingencies, AS 11 (revised 2003), The Effects of Changes in Foreign Exchange Rates, to the extent it deals with the ‘forward exchange contracts’ and AS 13, Accounting for Investments, except to the extent it relates to accounting for investment properties, would stand withdrawn only from the date AS 30 becomes manda tory (April 1, 2011 for the Company).

		Accordingly, the Company continues to comply with the guidance under these accounting standards; AS 4 — relating to Contingencies, AS 11 — relating to Forward Contracts and AS 13 until AS 30 becomes mandatory.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

	i)		As permitted by AS 30 and the consequent limited revisions to other accounting standards, the Company has designated a yen-denominated foreign currency borrowing amounting to JPY 27 Billion along with a floating for floating Cross-Currency Interest Rate Swap (CCIRS), as a hedging instrument to hedge its net investment in a non-integral foreign operation. In addition, the Company has also designated yen-denominated foreign currency borrowing amounting to JPY 8 Billion along with floating for fixed CCIRS as cash flow hedge of the yen- denominated borrowing and also as a hedge of net investment in a non-integral foreign operation.

	ii)		Accordingly, the translation gain/ (loss) on the foreign currency borrowings and portion of the changes in fair value of CCIRS which are determined to be effective hedge of net investment in non-integral operation and cash flow hedge of yen-denominated borrowings aggregating to Rs 134 Million and Rs. 1,112 Million for the quarter and six months ended September 30, 2009 respectively (quarter and six months ended September 30, 2008: Rs. (1,156) Million and Rs. (1,816) Million respectively, March 31, 2009: Rs (3,044) Million) was recognised in translation reserve / hedging reserve in shareholders’ funds. The amount of gain/ (loss) of Rs (161) Million and Rs 920 Million for the quarter and six months ended September 30, 2009 respectively (quarter and six months ended September 30, 2008: Rs. (1,156) Million and Rs. (1,816) Million respectively, March 31, 2009: Rs (3,753) Million) recognised in translation reserve would be transferred to profit and loss account upon sale or disposal of non-integral foreign operations and the amount of gain / (loss) of Rs 295 Million and Rs 192 Million for the quarter and six months ended September 30, 2009 respectively, (quarter and six months ended September 30, 2008: Nil, March 31, 2009: Rs 709 Million) recognised in the hedging reserve would be transferred to profit and loss upon occurrence of the hedged transaction.

	iii)		In accordance with AS 11, if the Company had continued to recognize translation (losses)/ gains on foreign currency borrowing in the profit and loss account, the foreign currency borrowing would not have been eligible to be combined with CCIRS for hedge accounting. Consequently the CCIRS also would not have qualified for hedge accounting and changes in fair value of CCIRS would have been recognised in the profit and loss account. As a result profit after tax would have been higher/ (lower) by Rs 120 Million and Rs 1,055 Million for the quarter and six months ended September 30, 2009 respectively (quarter and six months ended September 30, 2008: Rs. (1,156) Million and Rs. (1,816) Million respectively, March 31, 2009: Rs (3,044) Million).

5.		Derivatives

		As of September 30, 2009, the Company has recognised losses of Rs 10,649 Million (September 30, 2008: Rs. 13,823 Million, March 31, 2009: Rs 16,150 Million) relating to derivative financial instruments that are designated as effective cash flow hedges in the shareholders’ funds.

		In addition to the derivative instruments discussed above in Note 4 the Company has also designated certain forward contracts to hedge its net investment in non-integral foreign operations. The Company has recognized gain/ (loss) of Rs. 445 Million and Rs. 1,159 Million for the quarter and six months ended September 30, 2009 respectively (quarter and six months ended September 30, 2008: Rs. (2,117) Million and Rs (1,998) Million respectively, March 31, 2009: Rs (4,410) Million) relating to the derivative financial instruments in translation reserve in the shareholders’ funds.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

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


	*(In Million)*
	As at		As at		As at
	September		September		March
	30, 2009		30, 2008		31, 2009

Designated derivative instruments
Sell	$	954	$	2,172	$	1,060
	£	46	£	65	£	54
		—	€	12		—
	¥	5,354	¥	6,906	¥	6,130
	AUD	15		—	AUD	3
		—		—	CHF	2
		—		—	SGD	1
Buy	$	15		—		—
Cross currency swaps	¥	35,016	¥	35,016	¥	35,016
Net investment in non-integral foreign operations	$	262	$	305	$	267
	€	40	€	65	€	40

Non designated derivative instruments
Sell	$	234	$	320	$	612
	£	28	£	74	$	53
	AUD	8		—		—
	€	18	€	47	€	39
Buy	$	310	$	498	$	438
			¥	20,144	¥	23,170

6.		The Company has a 49% equity interest in Wipro GE Healthcare Private Limited (Wipro GE), an entity in which General Electric, USA holds the majority equity interest. The shareholders agreement provides specific rights to the two shareholders. Management believes that these specific rights do not confer joint control as defined in Accounting Standard 27 “Financial Reporting of Interests in Joint Ventures”. Consequently, Wipro GE is not considered as a joint venture and consolidation of financial statements is carried out as per the equity method in terms of Accounting Standard 23 “Accounting for Investments in Associates in Consolidated interim financial statements”.

7.		Sale of financial assets

		From time to time, in the normal course of business, the Company transfers accounts receivables, net investment in sales-type finance receivables and employee advances (financials assets) to banks. Under the terms of the arrangements, the Company surrenders control over the financial assets and accordingly the transfers are recorded as sale of financial assets. The sale of financial assets may be with or without recourse. Under arrangements with recourse, the Company is obligated to repurchase the uncollected financial assets, subject to limits specified in the agreement with the banks. Additionally, the Company retains servicing responsibility for the transferred financial assets. Gains and losses on sale of financial assets are recorded at the time of sale based on the carrying value of the financial assets, fair value of servicing liability and recourse obligations.

		During the quarter and six months ended September 30, 2009, the Company transferred financial assets of Rs. 780 Million and Rs. 1,955 Million, respectively (quarter and six months ended September 30, 2008: Rs. 182 Million and Rs. 813 Million respectively, March 31, 2009: Rs. 539 Million), under such arrangements and has included the proceeds in net cash provided by operating activities in the condensed statements of cash flows. This transfer resulted in a net gain / (loss) of Rs. (8) Million and Rs. 20 Million

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

		for the quarter and six months ended September 30, 2009 (quarter and six months ended September 30, 2008: Rs. 30 Million and Rs. 19 Million, respectively, March 31, 2009: Rs. (35) Million). As at September 30, 2009, the maximum amounts of recourse obligation in respect of the transferred financial assets are Rs. 484 (September 30, 2008: Nil, March 31, 2009: Nil).

8.		Employee stock option

i)		Employees covered under Stock Option Plans and Restricted Stock Unit (RSU) Option Plans are granted an option to purchase shares of the Company at the respective exercise prices, subject to requirements of vesting conditions. These options generally vest over a period of five years from the date of grant. Upon vesting, the employees can acquire one equity share for every option. The maximum contractual term for aforementioned stock option plans is generally 10 years.

ii)		The stock compensation cost is computed under the intrinsic value method and amortised on a straight line basis over the total vesting period of five years. The Company has granted Nil and 5,000 Options under RSU Options Plan during the quarter and six months ended September 30, 2009, respectively. For the quarter and six months ended September 30, 2009, the Company has recorded stock compensation expense of Rs. 389 Million and Rs. 775 Million, respectively (quarter and six months ended September 30, 2008: Rs 455 Million and Rs. 888 Million, respectively, March 31, 2009: Rs 1,767 Million).

9.		Income tax

		Provision for tax has been allocated as follows:


*(Rs in Million)*
	Quarter ended						Six months ended					Year Ended
	September 30,						September 30,					March 31,
Particulars	2009			2008			2009		2008			2009

Net current tax *		2,012			1,660			3,839		3,111			6,203
Deferred tax		173			(85	)		109		(109	)		(155	)
Fringe benefit tax		(100	)		84			—		183			412

Total income taxes		2,085			1,659			3,948		3,185			6,460


*		Current tax provision includes reversal / (charge) of tax provision in respect of earlier periods no longer required amounting to Rs. 349 Million and Rs. 428 Million for the quarter and six month ended September 30, 2009, respectively (quarter and six months ended September 30, 2008: Rs (50) Million and Rs. (23) Million respectively, March 31, 2009: Rs. 369 Million).

10.		The Company had received tax demands from the Indian income tax authorities for the financial years ended March 31, 2001, 2002, 2003 and 2004 aggregating to Rs. 11,127 Million (including interest of Rs. 1,503 Million). The tax demand was primarily on account of denial of deduction claimed by the Company under Section 10A of the Income Tax Act 1961, in respect of profits earned by its undertakings in Software Technology Park at Bangalore. The appeals filed by the Company for the above years to the first appellate authority were allowed in favour of the Company, thus deleting substantial portion of the demand raised by the Income tax authorities. On further appeal filed by the income tax authorities, the second appellate authority upheld the claim of the company for the years ended March 31, 2001, 2002, 2003 and 2004. In December 2008, the Company received, on similar grounds, an additional tax demand of Rs. 5,388 Million (including interest of Rs. 1,615 Million) for the financial year ended March 31, 2005. The Company has filed an appeal against the said demand within the time limits permitted under the statute.

		Considering the facts and nature of disallowance and the order of the first appellate authority upholding Company’s claims for earlier years, the Company expects the final outcome of the above disputes in Wipro’s favour.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

11.

The list of subsidiaries as of September 30, 2009 is as follows:


			Country
Direct Subsidiaries	Step Subsidiaries		of Incorporation
Wipro Inc.			USA
	Wipro Gallagher Solutions Inc		USA
	Enthink Inc.		USA
	Infocrossing Inc		USA
		Infocrossing, LLC	USA
cMango Pte Limited			Singapore
Wipro Japan KK			Japan
Wipro Shanghai Limited			China
Wipro Trademarks Holding Limited			India
	Cygnus Negri Investments Private Limited		India
Wipro Travel Services Limited			India
Wipro Consumer Care Limited			India
Wipro Holdings (Mauritius) Limited			Mauritius
	Wipro Holdings UK Limited		UK
		Wipro Technologies UK Limited	UK
		BVPENTEBeteiligun gsverwaltung GmbH	Austria
		New Logic Technologies GmbH	Austria
		NewLogic Technologies SARL	France
		3D Networks FZ-LLC	Dubai
		3D Networks (UK) Limited	UK
Wipro Cyprus Private Limited			Cyprus
	Wipro Technologies S.A DE C.V		Mexico
	Wipro BPO Philippines LTD. Inc		Philippines
	Wipro Holdings Hungary Korlátolt Felel•sség• Társaság		Hungary
	Wipro Technologies Argentina SA		Argentina
	Wipro Information Technology Egypt SAE		Egypt
	Wipro Arabia Limited (a)		Saudi Arabia
	Wipro Poland Sp Zoo		Poland
	Wipro Information Technology Netherlands BV (Formely Retail Box BV)		Netherlands
		Wipro Portugal S.A. (Formerly Enabler Informatics SA )	Portugal
		SAS Wipro France (Formerly Enabler France SAS)	France

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES


			Country
Direct Subsidiaries	Step Subsidiaries		of Incorporation
		Wipro Retail UK Limited (Formerly Enabler UK Ltd )	UK
		Wipro do Brasil Technologia Ltda (Formerly Enabler Brasil Ltda)	Brasil
		Wipro Technologies Gmbh (Formerly Enabler and Retail Consult Gmbh)	Germany
		Wipro Technologies Limited, Russia	Russia
	Wipro Technologies OY		Finland
	Wipro Infrastructure Engineering AB		Sweden
		Wipro Infrastructure Engineering OY	Finland
		Hydrauto Celka San ve Tic	Turkey
	Wipro Technologies SRL		Romania
	Wipro Singapore Pte Limited		Singapore
		PT WT Indonesia	Indonesia
		Unza Holdings Limited ^(A)	Singapore
		Wipro Technocentre (Singapore) Pte Limited	Singapore
		Wipro (Thailand) Co Limited	Thailand
Wipro Australia Pty Limited			Australia
Wipro Networks Pte Limited (formerly 3D Networks Pte Limited)			Singapore
Planet PSG Pte Limited			Singapore
	Planet PSG SDN BHD		Malaysia
Wipro Chengdu Limited			China
Wipro Chandrika Limited ^(b)			India
WMNETSERV Limited			Cyprus
	WMNETSERV (UK) Ltd.		UK
	WMNETSERV INC.		USA
Wipro Technology Services Limited			India


All the above subsidiaries are 100% held by the Company except the following:

a)		66.67% held in Wipro Arabia Limited

b)		90% held in Wipro Chandrika Limited

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

Step Subsidiary details of Unza Holdings Limited are as follows :


			Country
Direct Subsidiaries	Step Subsidiaries		of Incorporation
Unza Company Pte Ltd			Singapore
Unza Indochina Pte Ltd			Singapore
	Unza Vietnam Co., Ltd		Vietnam
Unza Cathay Ltd			Hong Kong
Unza China Ltd			Hong Kong
	Dongguan Unza Consumer Products Ltd.		China
PT Unza Vitalis			Indonesia
Unza Thailand Limited			Thailand
Unza Overseas Ltd			British virgin islands
Unza Africa Limited			Nigeria
Unza Middle East Ltd			British virgin islands
Unza International Limited			British virgin islands
Positive Equity Sdn Bhd			Malaysia
Unza Nusantara Sdn Bhd			Malaysia
	Unza Holdings Sdn Bhd		Malaysia
	Unza Malaysia Sdn Bhd		Malaysia
		UAA (M) Sdn Bhd	Malaysia
	Manufacturing Services Sdn Bhd		Malaysia
		Shubido Pacific Sdn Bhd (a)	Malaysia
	Gervas Corporation Sdn Bhd		Malaysia
		Gervas (B) Sdn Bhd	Malaysia
	Formapac Sdn Bhd		Malaysia


a)		All the above subsidiaries are 100% held by the Company except Shubido Pacific Sdn Bhd in which the holding is 62.55%

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

12.		The Company is currently organized by business segments, comprising IT Services, IT Products, Consumer Care and Lighting and Others. Business segments have been determined based on system of internal financial reporting to the board of directors and chief executive officer and are considered to be primary segments. The secondary segment is identified based on the geographic location of the customer.

		IT Services segment provides IT and IT enabled services to customers. Key service offering includes software application development, application maintenance, research and development services for hardware and software design, data center outsourcing services and business process outsourcing services.

		IT Products segment sells a range of Wipro personal desktop computers, Wipro servers and Wipro notebooks and is a value added reseller of desktops, servers, notebooks, storage products, networking solutions and packaged software for leading international brands.

		The Consumer Care and Lighting segment manufactures, distributes and sells personal care products, baby care products, lighting products and hydrogenated cooking oils for the Indian and Asian market.

		‘Others’ consist of business segments that do not meet the requirements individually for a reportable segment and includes other unallocable corporate income/expenses and assets/liabilities as defined in AS 17- Segment Reporting.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

The segment information for the quarter and six months ended September 30, 2009 is as follows:


	*Rs. in Million*
	Quarter ended September 30,									Six Months ended September 30,									Year ended March 31,
							Variance									Variance			Year ended March 31,
Particulars	2009			2008			(% )			2009			2008			(% )			2009
Revenues
IT Services		49,957			47,500			5	%		98,205			91,545			7	%		191,661
IT Products		11,834			10,023			18	%		19,436			17,486			11	%		34,552
Consumer Care and Lighting		5,866			5,269			11	%		11,329			10,396			9	%		20,830
Others		1,584			2,470						3,062			5,756						9,144
Eliminations		(69	)		(189	)					(121	)		(443	)					(745	)

TOTAL		69,172			65,073			6	%		131,911			124,740			6	%		255,442

Profit before interest and tax — PBIT
IT Services		11,871			9,959			19	%		22,647			19,144			18	%		40,323
IT Products		597			429			39	%		912			677			35	%		1,481
Consumer Care and Lighting		725			643			13	%		1,512			1,252			21	%		2,548
Others		(166	)		25						(449	)		206						(348	)

TOTAL		13,027			11,056			18	%		24,622			21,279			16	%		44,004

Interest and Other Income, Net		612			301						1,000			585						1,192

Profit before tax		13,639			11,357			20	%		25,622			21,864			17	%		45,196

Income Tax expense including Fringe Benefit Tax		(2,085	)		(1,659	)					(3,948	)		(3,185	)					(6,460	)

Profit before share in earnings of associates and minority interest		11,554			9,698			19	%		21,674			18,679			16	%		38,736
Share in earnings of associates		121			106						206			213						362
Minority interest		(58	)		(22	)					(107	)		(34	)					(99	)

PROFIT AFTER TAX		11,617			9,782			19	%		21,773			18,858			15	%		38,999

Operating Margin
IT Services		23.8	%		21.0	%					23.1	%		20.9	%					21.0	%
IT Products		5.0	%		4.3	%					4.7	%		3.9	%					4.3	%
Consumer Care and Lighting		12.4	%		12.2	%					13.3	%		12.0	%					12.2	%

TOTAL		18.8	%		17.0	%					18.7	%		17.1	%					17.2	%

CAPITAL EMPLOYED AS AT PERIOD END
IT Services and Products		109,643			94,830						109,64			394,830						115,686
Consumer Care and Lighting		17,727			18,942						17,727			18,942						18,689
Others		80,190			66,457						80,190			66,457						59,053

TOTAL		207,560			180,229						207,560			180,229						193,428

CAPITAL EMPLOYED COMPOSITION AS AT PERIOD END
IT Services and Products		53	%		53	%					53	%		53	%					60	%
Consumer Care and Lighting		8	%		11	%					8	%		11	%					10	%
Others		39	%		36	%					39	%		36	%					30	%

TOTAL		100	%		100	%					100	%		100	%					100	%

RETURN ON AVERAGE CAPITAL EMPLOYED DURING THE PERIOD
IT Services and Products		46	%		45	%					42	%		42	%					40	%
Consumer Care and Lighting		16	%		14	%					17	%		14	%					14	%

TOTAL		26	%		25	%					25	%		25	%					25	%

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

Notes to Segment Repdort

a)		The segment report of Wipro Limited and its consolidated subsidiaries and associates has been prepared in accordance with the AS 17 “Segment Reporting” issued pursuant to the Companies (Accounting Standard) Rules, 2006 and by The Institute of Chartered Accountants of India.

b)		In certain total outsourcing contracts of IT services segment, the company delivers hardware, software and other related deliverables. Revenue relating to these items are reported in the IT products segment.

c)		Segment revenue includes the following exchange differences, which are reflected under other income in the financial statements.


	*(Rs in Million)*
	Quarter ended						Six months ended						Year ended
	September 30,						September 30,						March 31,
Particulars	2009			2008			2009			2008			2009

IT Services		133			(147	)		(1,149	)		(818	)		(1,308	)
IT Products		(8	)		(122	)		(124	)		(134	)		(229	)
Consumer Care & Lighting		4			1			(5	)		(7	)		(54	)
Others		111			(13	)		112			(19	)		38

		240			(281	)		(1,166	)		(978	)		(1,553	)

Segment wise depreciation is as follows:


	*(Rs in Million)*
	Quarter ended				Six months ended				Year ended
	September 30,				September 30,				March 31,
Particulars	2009		2008		2009		2008		2009

IT Services		1,790		1,444		3,351		2,807		6,067
IT Products		44		46		90		89		88
Consumer Care & Lighting		117		96		239		192		420
Others		65		75		134		151		289

		2,016		1,661		3,814		3,239		6,864

e)		Segment PBIT includes Rs 231 Million and Rs. 384 Million (quarter and six months ended September 30, 2008: Rs 124 Million and Rs. 266 Million respectively, March 31, 2009: Rs 581 million) for the quarter and six months ended September 30, 2009 , respectively of certain operating other income which is reflected in other income in the Financial Statements.

f)		Capital employed of segments is net of current liabilities. The net current liability of segments is as follows :

(Rs in Million)

As of

Year ended

September 30,

March 31,

Particulars

2009

2008

2009

IT Services and Products

51,793

56,227

58,918

Consumer Care & Lighting

4,777

4,015

4,026

Others

18,412

17,422

22,494

74,982

77,664

85,438

The Company has four geographic segments: India, USA, Europe 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:


	*(Rs in Million)*
	Quarter ended								Six months ended								As of
	September 30,								September 30,								March 31,
Particulars	2009		%		2008		%		2009		%		2008		%		2009		%

India		17,023		25		15,354		24		29,943		23		27,912		23		54,608		21
United States of America		30,175		44		28,112		43		59,311		45		54,300		44		115,105		45
Europe		13,765		20		14,638		22		27,035		20		29,111		23		57,109		22
Rest of the world		8,209		11		6,969		11		15,622		12		13,417		10		28,620		12

		69,172		100		65,073		100		131,911		100		124,740		100		255,442		100

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

h)		The Company offers extended collection terms in certain large total outsourcing contracts . The extended collection terms in such outsourcing contracts relate to IT hardware, software and certain transformation services. Corporate Treasury provides internal financing to the business units offering extended collection terms and accordingly such receivables are reflected in Capital Employed of Others segment. As of September 30, 2009, Capital Employed of Others includes Rs. 5,323 million (September 30, 2008: Rs. 2,273 million, March 31, 2009: Rs. 4,311 million) of such receivables on extended collection terms.

i)		For the purpose of reporting, business segments are considered as primary segments and geographic segments are considered as secondary segments.

13.		Cash and Bank

		Details of balances with banks as of September 30, 2009 are as follows:


*(Rs in Million)*
	Current		Deposit
Bank Name	Account		Account		Total

Canara Bank		—		6,003		6,003
HSBC Bank		4,993		128		5,121
Wells Fargo Bank		4,161		—		4,161
Oriental Bank of Commerce		3		3,180		3,183
IDBI Bank		12		2,200		2,212
Citi Bank		1,315		382		1,697
HDFC Bank		1,619		—		1,619
Bank of India		3		1,105		1,108
State Bank of India		263		755		1,018
The Saudi British Bank		927		—		927
ICICI Bank		11		750		761
Central Bank of India		—		700		700
Bank of America		208		—		208
Others		1,231		314		1,545
Cash and cheques on hand		—		—		896

Total		14,746		15,517		31,159

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

14.

Investments

(a)

Investments in Indian money market mutual funds as on September 30, 2009:


*(Rs in Million)*
	As of
Fund House	September 30, 2009

Reliance		10,044
ICICI Prudential		9,897
HDFC		5,403
KOTAK		4,131
Franklin Templeton		3,964
Birla Sun Life		2,799
LIC		1,112
UTI		1,110
TATA		1,101
IDFC		532
Religare		491
Fortis		401
JPMORGAN		401

Total		41,386

(b)

Investment in Certificates of Deposit as on September 30, 2009:


*(Rs in Million)*
Particulars	As of September 30, 2009

IDBI Bank		479
State Bank of Bikaner and Jaipur		230
American Express Bank		24
Bank of Baroda — New York		12
Beal Bank Poland		24
Texas Capital Bank		11

Total		780

(c)

Other investments as of September 30, 2009:


*(Rs in Million)*
Particulars	As of September 30, 2009

Non-Convertible Debentures -Citicorp Finance		500
Investment in WEP Peripherals		85
Other investments		7

Total		592

15.		During the year ended March 31, 2007, the Company acquired certain entities providing computer aided design and engineering services for a consideration of Rs.142 Million, and additional consideration based on achievement of specified revenues and profit milestone over a period of 3 years. The additional consideration payable is recognized when the payment is probable and can be reasonably estimated.

		During the year ended March 31, 2008, these acquired entities were merged with other entities of Wipro. The merger was accounted as ‘amalgamation in the nature of merger’ in accordance with AS 14 , Accounting for Amalgamation, and the goodwill relating to the acquisition was adjusted against general reserve.

		During the quarter and six months ended September 30, 2009, the Company determined that Rs. 1,097 Million of additional consideration is payable. Pursuant to the merger of acquired entities, this additional consideration has been adjusted against general reserve.

16.		Corresponding figures for previous periods presented have been regrouped, where necessary, to confirm to the current period classification.