EXHIBIT 19.1

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

							(Rs in Million)
			As of December 31,				As of March 31,
	Schedule		2009		2008		2009
SOURCES OF FUNDS
SHAREHOLDERS’ FUNDS
Share capital		1		2,933		2,927		2,928
Share application money pending allotment				17		17		15
Reserves and surplus		2		175,710		130,969		133,356
				178,660		133,913		136,299
LOAN FUNDS
Secured loans		3		2,154		1,988		1,858
Unsecured loans		4		52,775		45,591		55,034
				54,929		47,579		56,892
Minority interest				394		192		237
				233,983		181,684		193,429
APPLICATION OF FUNDS
GOODWILL				54,955		50,252		56,521
FIXED ASSETS AND INTANGIBLE ASSETS
Gross block		5		85,410		67,548		75,353
Less: Accumulated depreciation and amortisation				41,105		34,114		36,342
Net block				44,305		33,434		39,011
Capital work-in-progress and advances				11,659		16,227		13,552
				55,964		49,661		52,563
INVESTMENTS		6		41,856		21,895		18,096
DEFERRED TAX ASSET (NET)				458		835		684
CURRENT ASSETS, LOANS AND ADVANCES
Inventories		7		7,851		7,774		7,587
Sundry debtors		8		50,320		49,664		48,899
Cash and bank balances		9		42,563		38,383		49,117
Loans and advances		10		55,518		43,061		45,117
				156,252		138,882		150,720
LESS: CURRENT LIABILITIES AND PROVISIONS
Liabilities		11		63,293		67,551		66,975
Provisions		12		12,209		12,290		18,180
				75,502		79,841		85,155
NET CURRENT ASSETS				80,750		59,041		65,565
				233,983		181,684		193,429
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. Chartered Accountants	Azim Premji Chairman	Girish S Paranjpe Jt CEO, IT Business & Director	Suresh Vaswani Jt CEO, IT Business & Director	Suresh C Senapaty Chief Financial Officer & Director
Akeel Master Partner Membership No. 046768	B C Prabhakar Director	V Ramachandran Company Secretary
Bangalore January 20, 2010

1

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

													(Rs in Million except share data)
																Year ended
				Quarter ended December 31,						Nine months ended December 31,						March 31,
	Schedule			2009			2008			2009			2008			2009
INCOME
Gross sales and services					69,489			66,241			202,949			192,594			258,050
Less: Excise duty					220			244			604			878			1,055
Net sales and services					69,269			65,997			202,345			191,716			256,995
Other income, net		13			1,306			1,212			2,283			2,332			2,621
					70,575			67,209			204,628			194,048			259,616
EXPENDITURE
Cost of sales and services		14			47,445			46,260			138,158			134,214			179,246
Selling and marketing expenses		15			4,956			4,454			13,957			13,369			17,796
General and administrative expenses		16			3,612			4,380			11,567			11,236			14,978
Interest		17			236			569			996			1,816			2,400
					56,249			55,663			164,678			160,635			214,420
PROFIT BEFORE TAXATION					14,326			11,546			39,950			33,413			45,196
Provision for taxation including fringe benefit tax		18	(10)		2,291			1,605			6,238			4,792			6,460
Profit before minority interest / share in earnings of associates					12,035			9,941			33,712			28,621			38,736
Minority interest					(31	)		(16	)		(139	)		(50	)		(99	)
Share in earnings of associates					170			114			376			327			362
PROFIT FOR THE PERIOD					12,174			10,039			33,949			28,898			38,999
Appropriations
Proposed dividend					—			—			—			—			5,860
Tax on dividend					—			—			—			—			996
TRANSFER TO GENERAL RESERVE					12,174			10,039			33,949			28,898			32,143
EARNINGS PER SHARE — EPS
Equity shares of par value Rs. 2/- each
Basic (in Rs.)					8.35			6.90			23.30			19.87			26.81
Diluted (in Rs.)					8.30			6.89			23.15			19.79			26.72
Number of shares for calculating EPS
Basic					1,457,767,682			1,455,372,354			1,456,940,058			1,454,448,714			1,454,662,502
Diluted					1,467,121,523			1,457,995,859			1,466,250,318			1,460,096,041			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. Chartered Accountants	Azim Premji Chairman	Girish S Paranjpe Jt CEO, IT Business & Director	Suresh Vaswani Jt CEO, IT Business & Director	Suresh C Senapaty Chief Financial Officer & Director
Akeel Master Partner Membership No. 046768	B C Prabhakar Director	V Ramachandran Company Secretary
Bangalore January 20, 2010

2

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES
CONDESED CONSOLIDATED CASH FLOW STATEMENT

	(Rs in Million)
	Quarter Ended December 31,						Nine Months Ended December 31,						Year ended March 31,
	2009			2008			2009			2008			2009
A. Cash flows from operating activities:
Profit before tax		14,326			11,546			39,950			33,412			45,196
Adjustments:
Depreciation and amortisation		1,923			1,753			5,737			4,993			6,864
Amortisation of stock compensation		273			452			1,048			1,340			1,767
Exchange differences — net		(438	)		410			(867	)		2,226			3,702
Impact of cash flow hedges		1,662			(5,483	)		4,397			(7,529	)		(12,196	)
Interest on borrowings		236			567			996			1,816			2,400
Dividend / interest income — net		(932	)		(1,288	)		(2,785	)		(3,229	)		(3,664	)
(Profit) / loss on sale of investments		8			(99	)		(306	)		(668	)		(681	)
Gain on sale of fixed assets		(15	)		(10	)		(27	)		(19	)		(28	)
Working capital changes:
Sundry debtors and unbilled		(3,799	)		(2,057	)		(4,586	)		(14,597	)		(13,152	)
Loans and advances		(1,328	)		135			(516	)		(3,284	)		(1,622	)
Inventories		(993	)		895			(142	)		(1,110	)		(922	)
Current liabilities and provisions		1,946			5,137			3,593			16,396			16,233
Net cash generated from operations		12,869			11,958			46,492			29,746			43,897
Direct taxes (paid)/refund-net		(2,195	)		(2,413	)		(6,520	)		(3,372	)		(7,798	)
Net cash generated by operating activities		10,674			9,545			39,972			26,374			36,099
B. Cash flows from investing activities:
Acquisition of fixed assets (including capital advances)		(3,062	)		(3,696	)		(8,298	)		(12,248	)		(16,746	)
Proceeds from sale of fixed assets		28			20			208			183			358
Advance / lease transactions		(1,950	)		—			(1,950	)		—			—
Purchase of investments		(62,937	)		(60,122	)		(255,471	)		(268,762	)		(342,717	)
Proceeds from sale / maturity of investments		65,845			79,879			232,392			263,876			341,687
Intercorporate deposits, net		(8,500	)		250			(4,250	)		—			(3,750	)
Payment for acquisition of businesses, net of cash acquired		(1,746	)		—			(2,207	)		(1,192	)		(6,679	)
Dividend / interest income received		648			1,288			2,839			3,229			3,664
Net cash (used in)/generated by investing activities		(11,674	)		17,619			(36,737	)		(14,914	)		(24,183	)
C. Cash flows from financing activities:
Proceeds from exercise of employee stock options		3			9			7			59			63
Share application money pending allotment		1			17			2			17			15
Interest paid on borrowings		(150	)		(567	)		(896	)		(1,816	)		(2,400	)
Dividends paid (including distribution tax)		(1	)		—			(6,823	)		(6,828	)		(6,829	)
Repayment of borrowings / loans		(9,755	)		(18,847	)		(45,315	)		(51,908	)		(80,229	)
Proceeds from borrowings / loans		22,521			10,435			43,792			47,643			86,648
Proceeds from issuance of shares by subsidiary		—			—			64			—			—
Net cash (used in)/generated by financing activities		12,619			(8,953	)		(9,169	)		(12,833	)		(2,732	)
Net (decrease) / increase in cash and cash equivalents during the period		11,619			18,211			(5,934	)		(1,373	)		9,184
Cash and cash equivalents at the beginning of the period		31,159			20,157			49,117			39,270			39,270
Effect of exchange rate changes on cash balance		(215	)		15			(619	)		487			663
Cash and cash equivalents at the end of the period		42,563			38,383			42,563			38,383			49,117

For and on behalf of the Board of Directors
for B S R & Co. Chartered Accountants	Azim Premji Chairman	Girish S Paranjpe Jt CEO, IT Business & Director	Suresh Vaswani Jt CEO, IT Business & Director	Suresh C Senapaty Chief Financial Officer & Director
Akeel Master Partner Membership No. 046768	B C Prabhakar Director	V Ramachandran Company Secretary
Bangalore January 20, 2010

3

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 December 31,						As of March 31,
	2009			2008			2009
SCHEDULE 1 SHARE CAPITAL
Authorised capital
1,650,000,000 (December 31, 2008 & March 31, 2009: 1,650,000,000) equity shares of Rs 2 each		3,300			3,300			3,300
25,000,000 (December 31, 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)]
1,467,572,082 (December 31, 2008: 1,463,724,838, March 31, 2009: 1,464,980,746) equity shares of Rs 2 each		2,935			2,927			2,930
Less: 968,803 (December 31, 2008: Nil, March 31, 2009: 968,803) equity shares issued to and held by controlled trust		(2	)		—			(2	)
		2,933			2,927			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		1,530			1,198			1,366
		28,809			26,571			27,279
Less: Shares issued to controlled trust [Refer note 18(2)]		(540	)		—			(540	)
		28,269			26,571			26,739
Translation reserve
Balance brought forward from previous year		1,233			(10	)		(10	)
Movement during the period		44			1,564			1,243
		1,277			1,554			1,233
Restricted stock units reserve [Refer note 18(9)]
Employee stock options outstanding		4,728			6,988			6,693
Less: Deferred employee compensation expense		2,894			4,934			4,380
		1,834			2,054			2,313
General reserve
Balance brought forward from previous year		118,813			86,764			86,764
Additions [Refer note 18 (3) (ii)]		32,884			28,804			32,049
		151,697			115,568			118,813
Hedging reserve [Refer note 18(5)]
Balance brought forward from previous year		(16,886	)		(1,097	)		(1,097	)
Movement during the period		8,375			(14,825	)		(15,789	)
Unrealised loss on cash flow hedging derivatives, net		(8,511	)		(15,922	)		(16,886	)
Summary of reserves and surplus
Balance brought forward from previous year		133,356			113,991			113,991
Movement during the period		42,354			16,978			19,365
		175,710			130,969			133,356

4

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

	(Rs in Million)
	As of December 31,				As of March 31,
	2009		2008		2009
SCHEDULE 3 SECURED LOANS
Term loans 1		217		370		233
Cash credit 1		1,170		674		643
Finance lease obligation2		767		944		982
		2,154		1,988		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.
2	Secured by underlying asset

SCHEDULE 4 UNSECURED LOANS
External commercial borrowings	17,648	18,884	18,052
Borrowing from banks	32,118	26,022	35,829
Others	3,009	685	1,153
	52,775	45,591	55,034

SCHEDULE 5 FIXED ASSETS

	(Rs in Million)
	GROSS BLOCK												ACCUMULATED DEPRECIATION AND AMORTISATION												NET BLOCK
															Depreciation and
	As of April				Effect of						As of December		As of April		amortisation		Effect of			Deductions /			As of December		As of December		As of March
PARTICULARS	1, 2009		Additions		Transalation*			Deductions			31, 2009		1, 2009		for the period		Transalation*			adjustments			31, 2009		31, 2009		31, 2009
(a) Tangible fixed assets
Land (including leasehold)		4,052		66		(3	)		—			4,115		19		93		—			—			112		4,003		4,033
Buildings		15,329		3,931		(71	)		(29	)		19,160		1,659		310		(24	)		(8	)		1,937		17,223		13,670
Plant & machinery#		42,037		5,269		(585	)		(476	)		46,245		27,178		4,045		(331	)		(291	)		30,601		15,644		14,859
Furniture, fixture and equipments		8,160		1,768		(22	)		(130	)		9,776		4,619		808		(16	)		(92	)		5,319		4,457		3,541
Vehicles		2,864		360		(2	)		(228	)		2,994		1,759		390		(1	)		(146	)		2,002		992		1,105
(b) Intangible fixed assets												-
Technical know-how		384		30		(2	)		—			412		384		2		(2	)		6			390		22		—
Brands, patents, trade marks and rights**		2,527		374		(173	)		(20	)		2,708		724		88		(70	)		2			744		1,964		1,803
		75,353		11,798		(858	)		(883	)		85,410		36,342		5,736		(444	)		(529	)		41,105		44,305		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 operations into Indian Rupee
#	Plant and machinery includes computers and computer software
**	Trade marks include Rs 348 related to Yardley acquisition made during the quarter ended 31 December 2009
@	Additions include Gross Block of Rs 859 and adjustments include Accumulated depreciation of Rs 613 in respect of assets of entities acquired during the year ended 31 March 2009.

5

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

	(Rs in Million)
	As of December 31,				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 3		2,013		1,635		1,670
Other investments [Refer note 18(15)]		877		337		343
		2,890		1,972		2,013
Current investments — quoted [Refer note 18(15)]
Investments in Indian money market mutual funds		38,931		17,029		15,136
Current investments — unquoted [Refer note 18(15)]
Certificates of deposit		35		2,894		947
		38,966		19,923		16,083
		41,856		21,895		18,096

³   Equity investments in this company carry certain restrictions on transfer of shares as provided for in the shareholders’ agreements

SCHEDULE 7 INVENTORIES
Finished goods	3,633	3,416	3,696
Raw materials	2,506	2,924	2,448
Stock in process	686	779	695
Stores and spares	1,026	655	748
	7,851	7,774	7,587
SCHEDULE 8 SUNDRY DEBTORS
Unsecured
Debts outstanding for a period exceeding six months
Considered good	7,213	4,800	5,832
Considered doubtful	2,303	1,491	1,433
	9,516	6,291	7,265
Other debts
Considered good	43,107	44,864	43,067
Considered doubtful	—	442	486
	52,623	51,597	50,818
Less: Provision for doubtful debts	2,303	1,933	1,919
	50,320	49,664	48,899
SCHEDULE 9 CASH AND BANK BALANCES
Balances with bank:
In current account	12,555	12,116	22,264
In deposit account	29,608	26,041	26,173
Cash and cheques on hand	400	226	680
[Refer note 18(14)]	42,563	38,383	49,117

6

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

	(Rs in Million)
	As of December 31,				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		4,769		4,412		4,059
- Advance to suppliers		689		1,539		706
- Employee travel & other advances		1,162		1,511		1,359
- Others		2,132		3,188		3,217
		8,752		10,650		9,341
Considered doubtful		233		158		160
		8,985		10,808		9,501
Less: Provision for doubtful advances		233		158		160
		8,752		10,650		9,341
Other deposits		1,745		1,527		1,586
Derivative assets		2,808		4,404		1,421
Finance lease receivables		4,058		2,812		3,605
Advance income taxes		12,151		8,177		9,952
Inter corporate deposits		8,500		500		4,250
Balances with excise and customs		1,119		876		854
Unbilled revenues		16,385		14,115		14,108
		55,518		43,061		45,117
SCHEDULE 11 LIABILITIES
Accrued expenses		24,087		21,797		22,496
Statutory liabilities		3,954		3,396		3,455
Sundry creditors		20,410		19,852		19,154
Unearned revenues		8,423		7,568		8,453
Advances from customers		721		740		824
Derivative liabilities		5,321		14,180		12,257
Unclaimed dividends		17		18		17
Others		360		—		319
		63,293		67,551		66,975
SCHEDULE 12 PROVISIONS
Employee retirement benefits		2,907		3,185		3,111
Warranty		1,041		981		1,048
Provision for tax		7,666		7,541		6,493
Proposed dividend		—		—		5,860
Tax on proposed dividend		—		—		996
Others		595		583		672
		12,209		12,290		18,180

7

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

	(Rs in Million)
							Nine months ended						Year ended
	Quarter ended December 31,						December 31,						March 31,
	2009			2008			2009			2008			2009
SCHEDULE 13 OTHER INCOME, NET
Income from current investments
— Dividend on mutual fund units		426			746			1,096			1,939			2,265
— Profit/ (loss) on sale of investments		(8	)		99			306			668			681
Interest on debt instruments and others		506			542			1,689			1,290			1,964
Exchange differences, net		394			186			(772	)		(792	)		(1,553	)
Exchange fluctuations on foreign currency borrowings, net		17			(521	)		(391	)		(1,200	)		(1,465	)
Miscellaneous income/(expense)		(29	)		160			355			427			729
		1,306			1,212			2,283			2,332			2,621
SCHEDULE 14 COST OF SALES AND SERVICES
Employee compensation		21,454			23,830			67,026			67,613			91,293
Raw materials, finished and process stocks consumed		13,047			10,937			37,650			34,551			45,770
Sub contracting / technical fees / third party application		4,773			4,137			11,883			10,937			14,184
Travel		1,725			1,949			4,238			5,249			6,684
Depreciation and amortisation		1,772			1,633			5,258			4,630			6,367
Repairs		1,376			907			3,090			2,364			3,142
Communication		682			657			2,126			1,839			2,610
Power and fuel		442			486			1,368			1,382			1,863
Outsourced technical services		324			356			1,027			1,060			1,442
Rent		472			424			1,476			1,194			1,667
Stores and spares		120			170			406			667			629
Insurance		90			83			266			271			372
Rates and taxes		77			70			202			218			313
Miscellaneous expenses		1,091			621			2,142			2,239			2,910
		47,445			46,260			138,158			134,214			179,246

8

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

	(Rs in Million)
					Nine months ended				Year ended
	Quarter ended December 31,				December 31,				March 31,
	2009		2008		2009		2008		2009
SCHEDULE 15 SELLING AND MARKETING EXPENSES
Employee compensation		2,399		2,324		6,644		6,683		8,982
Advertisement and sales promotion		1,262		800		3,535		2,656		3,470
Travel		229		250		626		851		1,037
Carriage and freight		299		232		781		746		1,005
Sales commission		224		292		654		689		886
Rent		124		121		360		389		477
Communication		103		93		293		275		396
Conveyance		42		37		112		116		157
Depreciation and amortisation		59		49		194		197		265
Repairs		29		56		77		99		123
Insurance		14		2		42		17		26
Rates and taxes		9		25		34		42		59
Miscellaneous expenses		163		173		605		609		913
		4,956		4,454		13,957		13,369		17,796
SCHEDULE 16 GENERAL AND ADMINISTRATIVE EXPENSES
Employee compensation		1,919		1,858		5,733		5,064		6,790
Travel		292		395		901		1,144		1,435
Legal and professional charges		315		500		1,230		1,183		1,502
Repairs and mantainance		194		173		673		570		780
Provision for doubtful debts		41		569		523		836		939
Staff recruitment		109		126		247		345		411
Manpower outside services		47		66		172		213		264
Depreciation and amortisation		92		71		285		166		232
Rates and taxes		27		15		122		35		72
Insurance		29		33		103		90		125
Rent		122		85		392		224		382
Auditors’ remuneration		6		6		18		18		23
Miscellaneous expenses		419		483		1,168		1,348		2,023
		3,612		4,380		11,567		11,236		14,978
SCHEDULE 17 INTEREST
Cash credit and others		236		569		996		1,816		2,400
		236		569		996		1,816		2,400

9

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 nine months ended December 31, 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 acquisi tion 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.

10

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.

11

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.

12

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 rate 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.

13

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 recognised 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.

14

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 unutilized 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 period.
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 of 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.

15

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 s hares.
	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.

16

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

2. Share capital

The following are the details for 1,467,572,082 (December 31, 2008: 1,463,724,838, March 31, 2009: 1,464,980,746) equity shares as of December 31, 2009:

No. of shares	Description
1,398,430,659	Equity shares / American Depository Receipts (ADRs) (December 31, 2008 & March 31, 2009: 1,398,430,659) have been allotted as fully paid bonus shares / ADRs by capitalization of Securities premium acco unt and Capital redemption reserve.
1,325,525	Equity shares (December 31, 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 (December 31, 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 (December 31, 2008 and March 31, 2009: 3,162,500) representing American Depository Receipts issued during 2000 -2001 pursuant to American Depository offering by the Company.
62,759,595	Equity shares (December 31, 2008: 59,881,154, 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
	Nine months ended						year ended
	December			December			March
Particulars	31, 2009			31, 2008			31, 2009
Transfer from Profit and Loss Account		33,949			28,898			32,143
Adjustment on adoption of AS 30		—			(89	)		(89	)
Additional purchase consideration [refer note 18(16)]		(1,097	)		—			—
Dividend paid to Wipro Equity Reward Trust and Wipro Inc Trust		36			—			—
Others		(4	)		(5	)		(5	)
		32,884			28,804			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 mandatory (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 – relating to Investments until AS 30 becomes mandatory.

17

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 25 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 326 Million and Rs. 1,438 Million for the quarter and nine months ended December 31, 2009 respectively (quarter and nine months ended December 31, 2008: Rs. (677) Million and Rs. (2,493) 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 325 Million and Rs 1,396 Million for the quarter and nine months ended December 31, 2009 respectively (quarter and nine months ended December 31, 2008: Rs. (503) Million and Rs. (2,319) Million respectively, March 31, 2009: Rs (3,017) 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 1 Million and Rs 42 Million for the quarter and nine months ended December 31, 2009 respectively, (quarter and nine months ended December 31, 2008: Rs. (174) Million and Rs. (174) Million respectively, March 31, 2009: Rs (27) 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 326 Million and Rs 1,438 Million for the quarter and nine months ended December 31, 2009 respectively (quarter and nine months ended December 31, 2008: Rs. (677) Million and Rs. (2,493) Million respectively, March 31, 2009: Rs (3,044) Million).

5. Derivatives

As of December 31, 2009, the Company has recognised losses of Rs 8,511 Million (December 31, 2008: Rs. 15,922 Million, March 31, 2009: Rs 16,886 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. 808 Million and Rs. 1,966 Million for the quarter and nine months ended December 31, 2009 respectively (quarter and nine months ended December 31, 2008: Rs. (1,083) Million and Rs (3,577) Million respectively, March 31, 2009: Rs (4,410) Million) relating to the derivative financial instruments in translation reserve in the shareholders’ funds.

18

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
	December		December		March
	31,2009		31,2008		31,2009
Designated derivative instruments
Sell	$	1,202	$	1,837	$	1,060
	£	43	£	60	£	54
		—	€	6		—
	¥	4,966	¥	6,518	¥	6,130
	AUD 16			—	AUD 3
		—		—	CHF 2
		—		—	SGD 1
Buy	$	15	$	4		—
Cross currency swaps	¥	33,014	¥	35,016	¥	35,016
Net investment in non-integral foreign operations	$	262	$	270	$	267
	€	40	€	50	€	40
Non designated derivative instruments
Sell	$	392	$	375	$	612
	£	43	£	76	£	53
	€	25	€	49	€	39
		—	CHF 12			—
Buy	$	512		—	$	438
		—		—	¥	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.

In December 2009, the Company has entered into a sale and purchase agreement with Lornamead Group Limited to acquire the entire share capital of Lornamead FZE (an entity incorporated in Dubai) and Lornamead Personal Care Private Limited (an entity incorporated in India)for a upfront consideration of Rs. 1,764 Million. The Company has also paid Rs. 348 Million for acquisition of Yardley Trademark, which has been recorded as an intangible assets. Yardley is a strong heritage global brand established since 1770 in the personal care category with fragrance products, bath & shower products and skin care. This acquisition adds to the Company’s strong brand portfolio of personal care products and would increase its presence in the Middle East and other Asian markets. The Company has recorded a goodwill of Rs. 1,625 Million in respect of this acquisition.

19

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

8. 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 nine months ended December 31, 2009, the Company transferred financial assets of Rs. 614 Million and 2,568 respectively (quarter and nine months ended December 31, 2008: Nil and Rs. 813 Million respectively, March 31, 2009: Rs. 539 Million), under such arrangements . Proceeds from transfer of receivables on non recourse basis are included in the net cash provided by operating activities in the condensed statements of cash flows. Proceeds from transfer of receivables on recourse basis are included in the net cash provided by financing activities. This transfer resulted in a net gain / (loss) of Rs. (3) Million and Rs. 17 Million for the quarter and nine months ended December 31, 2009 (quarter and nine months ended December 31, 2008: Nil and Rs. 19 Million, respectively, March 31, 2009: Rs. (35) Million). As at December 31, 2009, the maximum amounts of recourse obligation in respect of the transferred financial assets are Rs. 1,097 (December 31, 2008: Nil, March 31, 2009: Nil).

9. 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 137,100 and 142,100 Options under RSU Options Plan during the quarter and nine months ended December 31, 2009, respectively. For the quarter and nine months ended December 31, 2009, the Company has recorded stock compensation expense of Rs. 273 Million and Rs. 1,048 Million, respectively (quarter and nine months ended December 31, 2008: Rs 452 Million and Rs. 1,340 Million, respectively, March 31, 2009: Rs 1,767 Million).

10. Income tax

Provision for tax has been allocated as follows:

	(Rs in Million)
	Quarter ended					Nine months ended					Year Ended
	December 31,					December 31,					March 31,
Particulars	2009		2008			2009		2008			2009
Net current tax *		2,146		1,630			5,985		4,742			6,203
Deferred tax		145		(125	)		253		(234	)		(155	)
Fringe benefit tax		—		100			—		284			412
Total income taxes		2,291		1,605			6,238		4,792			6,460

* Current tax provision includes reversal / (charge) of tax provision in respect of earlier periods no longer required amounting to Rs. 10 Million and Rs. 446 Million for the quarter and nine month ended December 31, 2009, respectively (quarter and nine months ended December 31, 2008: Rs 180 Million and Rs. 157 Million respectively, March 31, 2009: Rs. 369 Million).

20

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

11.	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 which is pending before the first appellate authority.
	During December 2009, the company received the draft assessment order, on similar grounds, with a demand of Rs. 6,757 Mn (including interest of Rs. 2,050 Mn) for the financial year ended March 31, 2006. The Company will file the objection against the draft order before the Dispute Resolution Panel and the Assessing officer within the time limit permitted under the law.
	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.
12.	The list of subsidiaries as of December 31, 2009 is as follows:

			Country of
Direct Subsidiaries	Step Subsidiaries		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 (UK)
		Limited	UK

21

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

			Country of
Direct Subsidiaries	Step Subsidiaries		Incorporation
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
		Wipro Retail UK Limited
		(Formerly Enabler UK
		Ltd )	UK
		Wipro do Brazil
		Technologia Ltda
		(Formerly Enabler Brazil
		Ltda)	Brazil
		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 Bahrain Limited
		WLL	Bahrain
	Wipro Yardley FZE		Dubai
Wipro Australia Pty
Limited			Australia
Wipro Networks Pte
Limited (formerly 3D
Networks Pte Limited)			Singapore

22

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

		Country of
Direct Subsidiaries	Step Subsidiaries	Incorporation
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
Wipro Airport IT
Services Limited		India
Lornamead Personal
Care Private 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

A. Step Subsidiary details of Unza Holdings Limited are as follows :

			Country of
Step subsidiaries	Step subsidiaries		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%

23

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

13.	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.
	The 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 servi ces and business process outsourcing services.
	The IT Products segment sells a range of Wipro personal desktop computers, Wipro servers and Wipro notebooks. The Company is also a value added reseller of desktops, servers, notebooks, storage products, networking solutions and packaged software for leading international brands. In certain total outsourcing contracts of the IT Services segment, the Company delivers hardware, software and other related deliverables. Revenue relating to these items is reported as revenue from the sale of IT Products.
	The Consumer Care and Lighting segment manufactures, distributes and sells personal care products, baby care products, lighting products and hydrogenated cooking oils in the Indian and Asian markets.
	‘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.
	For the purpose of segment reporting, the Company has included the impact of ‘exchange differences, net’ in revenues. The Company generally offers multi-year payment terms in certain total outsourcing contracts. These payment terms primarily relate to IT hardware, software and certain transformation services in Outsourcing contracts. Corporate Treasury provides internal financing to the business units offering multi-year payment terms and accordingly such receivables are reflected in Capital Employed of “Others”. As of December 31, 2009, Capital Employed of Others includes Rs. 7,249 Million (December 31, 2008: Rs. 4,401 Million, March 31, 2009: Rs. 5,549 Million) of such receivables on extended collection terms.

24

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

The segment information for the quarter and nine months ended December 31, 2009 is as follows:

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

	Rs. in Million
																			Year ended
	Quarter ended December 31,									Nine months ended December 31,									March 31,
							Variance									Variance
Particulars	2009			2008			(% )			2009			2008			(% )			2009
Revenues
IT Services		51,636			50,792			2	%		149,841			142,338			5	%		191,661
IT Products		10,016			8,369			20	%		29,451			25,854			14	%		34,552
Consumer Care and Lighting		6,010			5,270			14	%		17,339			15,666			11	%		20,830
Others		2,047			1,919						5,108			7,675						9,144
Eliminations		(47	)		(167	)					(167	)		(609	)					(745	)
TOTAL		69,662			66,183			5	%		201,572			190,924			6	%		255,442
Profit before Interest and Tax — PBIT
IT Services		12,273			10,449			17	%		34,920			29,594			18	%		40,323
IT Products		579			431			34	%		1,491			1,109			34	%		1,481
Consumer Care and Lighting		740			613			21	%		2,252			1,865			21	%		2,548
Others		30			(242	)					(419	)		(38	)					(348	)
TOTAL		13,622			11,251			21	%		38,244			32,530			18	%		44,004
Interest and Other Income, Net		704			295						1,706			882						1,192
Profit before tax		14,326			11,546			24	%		39,950			33,412			20	%		45,196
Income Tax expense including Fringe Benefit Tax		(2,291	)		(1,605	)					(6,238	)		(4,792	)					(6,460	)
Profit before Share in earnings of associates and minority interest		12,035			9,941			21	%		33,712			28,620			18	%		38,736
Share in earnings of associates		170			114						376			327						362
Minority interest		(31	)		(16	)					(139	)		(50	)					(99	)
PROFIT AFTER TAX		12,174			10,039			21	%		33,949			28,897			17	%		38,999
Operating Margin
IT Services		23.8	%		20.6	%					23.3	%		20.8	%					21.0	%
IT Products		5.8	%		5.1	%					5.1	%		4.3	%					4.3	%
Consumer Care and Lighting		12.3	%		11.6	%					13.0	%		11.9	%					12.2	%
TOTAL		19.6	%		17.0	%					19.0	%		17.0	%					17.2	%
CAPITAL EMPLOYED AS AT PERIOD END
IT Services and Products		113,603			95,102						113,603			95,102						114,448
Consumer Care and Lighting		19,709			18,848						19,709			18,848						18,689
Others		100,671			67,734						100,671			67,734						60,292
TOTAL		233,983			181,684						233,983			181,684						193,429
CAPITAL EMPLOYED COMPOSITION AS AT PERIOD END
IT Services and Products		49	%		52	%					49	%		52	%					59	%
Consumer Care and Lighting		8	%		10	%					8	%		10	%					10	%
Others		43	%		38	%					43	%		38	%					31	%
TOTAL		100	%		100	%					100	%		100	%					100	%
RETURN ON AVERAGE CAPITAL EMPLOYED
IT Services and Products		46	%		46	%					43	%		43	%					40	%
Consumer Care and Lighting		16	%		13	%					16	%		14	%					14	%
TOTAL		25	%		25	%					24	%		25	%					25	%

25

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

Notes to Segment Report

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)	Segment wise depreciation is as follows:

									(Rs in Million)
	Quarter ended				Nine months ended				Year ended
	December 31,				December 31,				March 31,
Particulars	2009		2008		2009		2008		2009
IT Services		1,703		1,566		5,108		4,430		6,067
IT Products		21		7		57		39		88
Consumer Care & Lighting		106		109		345		302		420
Others		93		71		227		222		289
		1,923		1,753		5,737		4,993		6,864

c)	Segment PBIT includes Rs (29) Million and Rs. 355 Million for the quarter and nine months ended December 31, 2009, respectively (quarter and nine months ended December 31, 2008: Rs 160 Million and Rs. 427 Million respectively, March 31, 2009: Rs 581 million) of certain operating other income / (loss) which is reflected in other income in the Financial Statements.
d)	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
	December 31,				March 31,
Particulars	2009		2008		2009
IT Services and Products		50,940		58,156		58,635
Consumer Care & Lighting		4,974		4,421		4,026
Others		19,588		17,264		22,494
		75,502		79,841		85,155

e) 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								Nine months ended								As of
	December 31,								December 31,								March 31,
Particulars	2009		%		2008		%		2009		%		2008		%		2009		%
India		15,446		22		13,335		20		45,389		23		41,247		22		54,608		21
United States of America		29,879		43		30,752		46		89,190		44		85,052		45		115,105		45
Europe		14,543		21		14,663		23		41,578		21		43,776		23		57,109		22
Rest of the world		9,794		14		7,433		11		25,415		12		20,849		10		28,620		12
		69,662		100		66,183		100		201,572		100		190,924		100		255,442		100

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

26

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

14. Cash and Bank

Details of balances with banks as of December 31, 2009 are as follows:

	(Rs in Million)
	In Current		In Deposit
Bank Name	Account		Account		Total
HSBC Bank		4,894		124		5,018
Wells Fargo Bank		3,029		—		3,029
HDFC Bank		1,133		—		1,133
Citi Bank		1,065		112		1,177
The Saudi British Bank		487		—		487
Standard Chartered Bank		294		—		294
Bank of America		283		—		283
State Bank of India		208		—		208
DBS Bank		174		—		174
Rabo Bank		163		—		163
Bank of Montreal		126		—		126
ING Vysya Bank		—		800		800
IDBI Bank		10		4,120		4,130
Bank of India		3		1,478		1,481
Canara Bank		2		13,753		13,755
Oriental Bank of Commerce		—		7,970		7,970
Central Bank of India		—		990		990
Others		684		261		945
Cash and cheques on hand		—		—		400
Total		12,555		29,608		42,563

15. Investments

(a) Investments in Indian money market mutual funds as on December 31, 2009:

	(Rs in Million)
	As of
Fund House	December 31, 2009
Reliance		6,960
ICICI Prudential		6,293
HDFC		6,212
Kotak		6,088
Franklin Templeton		3,985
Birla Sun Life		3,451
LIC		2,179
UTI		2,064
Tata		747
IDFC		538
Religare		405
Fortis		8
JP Morgan		1
Total		38,931

27

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

(b) Investment in Certificates of Deposit as on December 31, 2009:

(Rs in Million)
Particulars	As of December 31, 2009
Bank of Baroda – New York		12
Beal Bank Poland		12
Texas Capital Bank		11
Total		35

(c) Other investments as of December 31, 2009:     

	(Rs in Million)
Particulars		As of December 31, 2009
Non-Convertible Debentures -Citicorp Finance			247
Non-Convertible Debentures -Morgan Stanley			493
Other investments			137
Total			877

16.	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 cons ideration payable is recognized when the payment is probable and can be reasonably estimated.
	During the year ended March 31, 2008, these acquired entities were merge d 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 nine months ended December 31, 2009, the Company determined that Nil and Rs. 1,097 Million, respectively, of additional consideration is payable. Pursuant to the merger of acquired entities, this additional consideration has been adjusted against gene ral reserve.
17.	Corresponding figures for previous periods presented have been regrouped, where necessary, to confirm to the current period classification.

28