EX-99.4 5 d915417dex994.htm EX-99.4 EX-99.4

Exhibit 99.4

WIPRO LIMITED - CONSOLIDATED

CIN: L32102KA1945PLC020800 ; Registered Office : Wipro Limited, Doddakanneli, Sarjapur Road, Bangalore - 560035, India

Website: www.wipro.com ; Email id – info@wipro.com ; Tel: +91-80-2844 0011 ; Fax: +91-80-2844 0054

CONSOLIDATED STATUTORILY AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED MARCH 31, 2015

( LOGO in millions, except share and per share data, unless otherwise stated)

 

    

Particulars

  Quarter ended     Year ended  
         March 31,
2015
    December 31,
2014
    March 31,
2014
    March 31,
2015
    March 31,
2014
 

1

   Income from operations          
   a) Net Sales/income from operations (net of excise duty)     121,714        120,851        117,036        473,180        437,549   
   b) Other operating income     —          —          —          —          —     
   Total income from operations (net)     121,714        120,851        117,036        473,180        437,549   

2

   Expenses          
   a) Cost of materials consumed     —          5        1,273        34        2,054   
   b) Purchase of stock-in-trade     8,457        7,392        7,347        29,802        27,670   
  

c) (Increase)/Decrease in inventories of finished stock,

    work-in-progress and stock in process

    (508     (1,622     523        (2,588     54   
   d) Employee compensation     56,827        57,175        52,722        224,838        206,568   
   e) Depreciation and amortisation expense     3,267        3,647        2,880        12,823        11,106   
   f) Sub contracting/technical fees/third party application     13,379        14,123        11,612        52,247        43,568   
   g) Other expenditure     15,736        16,097        14,869        60,601        57,175   
   Total expense     97,158        96,817        91,226        377,757        348,195   

3

   Profit from operations before other income, finance costs and exceptional items (1-2)     24,556        24,034        25,810        95,423        89,354   

4

   Other Income     5,476        5,035        3,959        19,859        14,542   

5

   Profit from ordinary activities before finance costs and exceptional items (3+4)     30,032        29,069        29,769        115,282        103,896   

6

   Finance Cost     912        810        842        3,599        2,891   

7

   Profit from ordinary activities after finance costs but before exceptional items (5-6)     29,120        28,259        28,927        111,683        101,005   

8

   Exceptional items     —          —          —          —          —     

9

   Profit from ordinary activities before tax (7+8)     29,120        28,259        28,927        111,683        101,005   

10

   Tax expense     6,255        6,228        6,536        24,624        22,600   

11

   Net profit from ordinary activities after tax (9-10)     22,865        22,031        22,391        87,059        78,405   

12

   Extraordinary items (net of tax expense)     —          —          —          —          —     

13

   Net profit for the period (11+12)     22,865        22,031        22,391        87,059        78,405   

14

   Share in earnings of associates     —          —          —          —          —     

15

   Minority interest     (145     (103     (126     (531     (438

16

   Net profit after taxes, minority interest and share of profit of     22,720        21,928        22,265        86,528        77,967   
   associates (13+14+15)          

17

  

Paid up equity share capital

(Face value LOGO 2 per share)

    4,937        4,937        4,932        4,937        4,932   

18

   Reserves excluding revaluation reserves as per balance sheet of previous accounting year             338,567   

19

   EARNINGS PER SHARE (EPS)          
   Before extraordinary items          
   Basic (in LOGO )     9.25        8.92        9.07        35.25        31.76   
   Diluted (in LOGO )     9.21        8.88        9.04        35.13        31.66   
   After extraordinary items          
   Basic (in LOGO )     9.25        8.92        9.07        35.25        31.76   
   Diluted (in LOGO )     9.21        8.88        9.04        35.13        31.66   

20

   Public shareholding (1)          
   Number of shares     608,633,451        608,391,868        606,514,878        608,633,451        606,514,878   
   Percentage of holding (as a % of total public shareholding)     25.14     25.14     25.08     25.14     25.08

21

   Promoters and promoter group shareholding          
   a) Pledged/ Encumbered          
   -Number of shares     Nil        Nil        Nil        Nil        Nil   
  

-Percentage of shares (as a % of the total shareholding of promoter

  and promoter group)

    Nil        Nil        Nil        Nil        Nil   
  

-Percentage of shares (as a % of the total share capital of the

  company)

    Nil        Nil        Nil        Nil        Nil   
   b) Non-encumbered          
   -Number of shares (2)     1,812,022,464        1,812,022,464        1,812,022,464        1,812,022,464        1,812,022,464   
  

-Percentage of shares (as a % of the total shareholding of promoter

  and promoter group)

    100     100     100     100     100
  

-Percentage of shares (as a % of the total share capital of the

  company, excluding ADS Shareholding)

    74.86     74.86     74.92     74.86     74.92

 

(1)  Public shareholding as defined under clause 40A of the listing agreement (excludes shares beneficially held by promoters and holders of American Depository Receipt)
(2)  Includes 440,557,453 (December 31, 2014: 440,557,453; March 31, 2014: 440,557,453) equity shares on which Promoter does not have beneficiary interest.


Status of redressal of complaints received for the period January 1, 2015 to March 31, 2015

 

Sl
No.

  

Nature of the complaint

   Nature    Unresolved
as at
01.01.2015
     Complaints
received
during the
quarter
     Complaints
disposed
during the
quarter
     Unresolved
as at
31.03.2015
 

1

  

Non-Receipt of Securities

   Complaint      —           6         6         —     

2

  

Non Receipt of Annual Reports

   Complaint      —           4         4         —     

3

   Correction / Duplicate / Revalidation of dividend warrants / Demerger Fractional Payout Warrants    Request      —           100         100         —     

4

  

SEBI/Stock Exchange Complaints

   Complaint      —           5         5         —     

5

  

Non Receipt of Dividend warrants

   Complaint      —           77         77         —     
  

TOTAL

        —           192         192         —     

Note: There are certain pending cases relating to disputes over title to shares in which the company has been made a party. However these cases are not material in nature.

 

1. The condensed consolidated interim financial results of the Company for the quarter ended March 31, 2015 have been approved by the directors of the Company at its meeting held on April 21, 2015. The statutory auditors have expressed an unqualified audit opinion.

 

2. The above consolidated interim financial results have been prepared from the condensed consolidated interim financial statements, which are prepared in accordance with International Financial Reporting Standards and its interpretations (“IFRS”), as issued by the International Accounting Standards Board (“IASB”).

 

3. The total revenue from operations represent the aggregate revenue and includes foreign exchange gains / (losses), net and is net of excise duty amounting to Nil, Nil, and LOGO 9 for the quarter ended March 31, 2015, December 31, 2014 and March 31, 2014, respectively, LOGO 2 and LOGO 79 for the year ended March 31, 2015 and March 31, 2014, respectively.

 

4. Derivatives

The Company is exposed to foreign currency fluctuations on foreign currency assets / liabilities, forecasted cash flows denominated in foreign currency and net investment in foreign operations. The Company follows established risk management policies, including the use of derivatives to hedge foreign currency assets / liabilities, foreign currency forecasted cash flows and net investment in foreign operations. The counter parties in these derivative instruments are primarily banks and the Company considers the risks of non-performance by the counterparty as non-material.

 

2


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

 

     (In millions)  
     As at  
     March 31, 2015      March 31, 2014  

Designated derivative instruments

     

Sell

   $ 836       $         516   
   £ 198       £ 51   
   220       78   
   AUD 83       AUD 9   

Interest rate swaps

   $ 150       $ 150   

Net investment hedges in foreign operations

     

Others

   $ 145       $ 220   
   —         25   

Non designated derivative instruments

     

Sell

   $ 1,304       $ 1,061   
   £ 67       £ 112   
   60       63   
   AUD 53       AUD 99   
   ¥ 490       ¥ 490   
   SGD 13       SGD 8   
   ZAR 69       ZAR 223   
   CAD 30       CAD 10   
   CHF 10       CHF —     

Buy

   $ 790       $ 585   

 

5. The list of subsidiaries is included in the condensed consolidated financial statements of Wipro Limited and subsidiaries for the quarter ended March 31, 2015, are available on our company website www.wipro.com

 

6. Segment Information

The Company is organized by the following operating segments; IT Services and IT Products.

IT Services: The IT Services segment primarily consists of IT Service offerings to our customers organized by industry verticals as follows: Banking, Financial Services and Insurance (BFSI), Healthcare and Life Sciences (HLS), Retail, Consumer, Transport and Government (RCTG), Energy, Natural Resources and Utilities (ENU), Manufacturing (MFG), Global Media and Telecom (GMT). Starting with quarter ended September 30, 2014, it also includes Others which comprises dividend income and gains or losses (net) relating to strategic investments, which are presented within “Finance and other income” in the statement of Income. Key service offering to customers includes software application development and maintenance, research and development services for hardware and software design, business application services, analytics, consulting, infrastructure outsourcing services and business process services.

IT Products: The 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 products and other related deliverables.

 

3


During FY 2013-14, the Company ceased the manufacturing of ‘Wipro branded desktops, laptops and servers’. Revenue relating to the above items is reported as revenue from the sale of IT Products.

The Chairman of the Company has been identified as the Chief Operating Decision Maker (CODM) as defined by IFRS 8, “Operating Segments”. The Chairman of the Company evaluates the segments based on their revenue growth and operating income.

Assets and liabilities used in the Company’s business are not identified to any of the reportable segments, as these are used interchangeably between segments. Management believes that it is currently not practicable to provide segment disclosures relating to total assets and liabilities since a meaningful segregation of the available data is onerous.

Information on reportable segment for the quarter ended March 31, 2015, December 31, 2014 and March 31, 2014, and year ended March 31, 2015 and March 31, 2014 is as follows:

 

Particulars

   Quarter ended     Year ended  
   March 31,
2015
    December 31,
2014
    March 31,
2014
    March 31,
2015
    March 31,
2014
 

Revenue

          

IT Services

          

BFSI

     29,852        29,177        28,468        115,505        106,035   

HLS

     13,171        13,247        11,275        49,884        41,130   

RCTG

     16,258        16,005        15,412        62,209        58,893   

ENU

     17,437        18,637        17,173        71,229        63,923   

MFG

     20,582        20,718        19,095        80,303        74,423   

GMT

     15,117        15,661        14,770        61,050        55,105   

Others

     —          —          —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total of IT Services

  112,417      113,445      106,193      440,180      399,509   

IT Products

  9,454      7,740      11,090      34,006      38,785   

Reconciling Items

  (157   (334   (238   (1,004   (666
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  121,714      120,851      117,045      473,182      437,628   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Segment Result

IT Services

BFSI

  7,474      7,035      7,005      27,378      24,153   

HLS

  3,031      2,981      2,482      10,565      7,637   

RCTG

  3,542      3,255      4,048      13,190      13,012   

ENU

  4,078      4,262      4,887      17,561      17,418   

MFG

  4,497      4,228      4,909      17,127      17,348   

GMT

  2,878      3,438      3,332      13,574      11,569   

Others

  —        —        —        583      —     

Unallocated

  (723   (458   (609   (2,329   (804
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total of IT Services

  24,777      24,741      26,054      97,649      90,333   

IT Products

  58      89      143      374      310   

Reconciling Items

  (279   (796   (387   (2,600   (1,289
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  24,556      24,034      25,810      95,423      89,354   

Finance Expense

  (912   (810   (842   (3,599   (2,891

Finance and Other Income

  5,476      5,035      3,959      19,859      14,542   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit before tax

  29,120      28,259      28,927      111,683      101,005   

Income tax expense

  (6,255   (6,228   (6,536   (24,624   (22,600
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit for the period

  22,865      22,031      22,391      87,059      78,405   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

The Company has four geographic segments: India, Americas, Europe and Rest of the world. Revenues from the geographic segments based on domicile of the customer are as follows:

 

     Quarter ended      Year ended  
     March 31,
2015
     December 31,
2014
     March 31,
2014
     March 31,
2015
     March 31,
2014
 

India

     LOGO 13,427         LOGO 10,649         LOGO 12,644         LOGO 45,814         LOGO 46,235   

Americas

     58,583         58,735         53,504         227,328         200,343   

Europe

     30,454         31,818         32,603         124,523         120,868   

Rest of the world

     19,250         19,649         18,294         75,517         70,182   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
  LOGO 121,714      LOGO 120,851      LOGO 117,045      LOGO 473,182      LOGO 437,628   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Management believes that it is currently not practicable to provide disclosure of geographical location wise assets, since the meaningful segregation of the available information is onerous.

No client individually accounted for more than 10% of the revenues during the quarter ended March 31, 2015 December 31, 2014, and March 31, 2014, year ended March 31, 2015 and March 31, 2014.

Notes:

 

  a) ‘Reconciling items’ includes elimination of inter-segment transactions, dividend income/ gains/ losses relating to strategic investments and other corporate activities.

 

  b) Segment result represents operating profits of the segments and dividend income and gains or losses (net) relating to strategic investments, which are presented within “Finance and other income” in the statement of Income.

 

  c) Revenues include excise duty amounting to Nil, Nil and LOGO 9 for the quarter ended March 31, 2015, December 31, 2014 and March 31, 2014, respectively, LOGO 2 and LOGO 79 for the year ended March 31, 2015 and March 31, 2014. For the purpose of segment reporting, the segment revenues are net of excise duty. Excise duty is reported in reconciling items.

 

4


  d) Revenue from sale of traded cloud based licenses is reported as part of IT Services revenues.

 

  e) For the purpose of segment reporting, the Company has included the impact of ‘foreign exchange gains / (losses), net’ in revenues (which is reported as a part of operating profit in the statement of income).

 

  f) For evaluating performance of the individual business segments, stock compensation expense is allocated on the basis of straight line amortization. The differential impact of accelerated amortization of stock compensation expense over stock compensation expense allocated to the individual business segments is reported in reconciling items.

 

  g) For evaluating the performance of the individual business segments, amortization of customer and marketing related intangibles acquired through business combinations are reported in reconciling items.

 

  h) 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. The finance income on deferred consideration earned under these contracts is included in the revenue of the respective segment and is eliminated under reconciling items.

 

7. The Company has granted Nil options under RSU Options Plan and Nil options under ADS during the quarter ended March 31, 2015, December 31, 2014 and March 31, 2014 and 2,480,000 and 30,000 options under RSU Plan and 1,689,500 and Nil options under ADS during the year ended March 31, 2015 and 2014, respectively.

 

8. Business Combination

Opus Capital Markets Consultants LLC

On January 14, 2014, the Company had obtained control of Opus Capital Markets Consultants LLC (‘Opus’) by acquiring 100% of its share capital. Opus is a US-based provider of mortgage due diligence and risk management services. The acquisition will strengthen Wipro’s mortgage solutions and complement its existing offerings in mortgage origination, servicing and secondary market.

The acquisition was executed through a share purchase agreement for a consideration of LOGO 4,589 million (US$ 75 million) which includes a deferred earn-out component of LOGO 1,285 million (US$ 21 million), which is dependent on achievement of revenues and earnings over a period of 3 years. This earn-out liability was fair valued at LOGO 782 million and recorded as part of preliminary purchase price allocation.

During the three months ended 31 December 2014, the Company concluded the fair value adjustments of the assets acquired and liabilities assumed on acquisition. Consequently, the fair value of earn-out liability was recorded at LOGO 589 million. Comparatives have not been retrospectively revised as the amounts are not material.

The following table presents the allocation of purchase price:

 

Description

   Pre-acquisition
carrying amount
     Fair value
adjustments
     Purchase price
allocated
 

Assets

        

Cash and cash equivalents

     LOGO 22         —           22   

Property, plant & equipment (including software)

     160         —           160   

Trade receivable

     456         —           456   

Other assets .

     20         —           20   

Customer related intangibles

     —           234         234   

Non-compete arrangement

     —           216         216   

Liabilities

        

Other liabilities

     (258      —           (258

Deferred income taxes, net

     —           (133      (133
  

 

 

    

 

 

    

 

 

 

Total

  400      317      717   
  

 

 

    

 

 

    

 

 

 

Goodwill

  2,810   
        

 

 

 

Total purchase price

  LOGO 3,527   
        

 

 

 

 

5


The goodwill of LOGO 2,810 comprises of value of expected synergies arising from the acquisition.

As at December 31 2014, the fair value of earn-out liability was determined to be LOGO 144 as a result of changes in estimates of revenue and earnings over the earn-out period. The revision of the estimates has inter alia resulted in reduction in the carrying value of intangibles recognized on acquisition. Accordingly, a net gain of LOGO 470 has been recorded in the statement of income.

The fair value of earn-out consideration as at the period end was estimated by applying the Discounted Cash Flow approach. The fair value estimates are based on discount rate of 7% and probability adjusted revenue and earnings estimates.

During the three months ended March 31, 2015, an amount of LOGO 39 has been paid to the sellers representing earn-out payments for the calendar year 2014.

ATCO I-Tek Inc.

On August 15, 2014, the Company obtained control of ATCO I-Tek Inc., a Canadian entity, by acquiring 100% of its share capital and certain assets of IT services business of ATCO I-Tek Australia (hereafter the acquisitions are collectively referred to as ‘acquisition of ATCO I-Tek’) for an all-cash consideration of LOGO 11,420 million (Canadian Dollars 204 million). ATCO I-Tek provides IT services to ATCO Group. The acquisition will strengthen Wipro’s IT services delivery model in North America and Australia.

During the three months ended March 31, 2015, LOGO 349 has been adjusted to the purchase price representing closure of certain closing conditions. This has resulted in reduction of goodwill as at March 31, 2015. Consequently, the Company concluded the fair value adjustments of the assets acquired and liabilities assumed on acquisition.

The following table presents the allocation of purchase price:

 

Description

   Pre-acquisition
carrying amount
     Fair value
adjustments
     Purchase price
allocated
 

Assets

        

Cash

     71         —         LOGO   71   

Property, plant & equipment (including capital work-in-progress and software)

     1,689         (278      1,411   

Trade receivables

     210         —           210   

Other assets

     296         —           296   

Customer related intangibles

     —           8,228         8,228   

Liabilities

        

Trade payables and accrued liabilities

     (798      —           (798

Deferred income taxes, net

     (138      (2,017      (2,155
  

 

 

    

 

 

    

 

 

 

Total

  1,330      5,933      7,263   
  

 

 

    

 

 

    

 

 

 

Goodwill

  3,808   
        

 

 

 

Total purchase price

LOGO    11,071   
        

 

 

 

 

6


The goodwill of LOGO 3,808 comprises of value of expected synergies arising from the acquisition. Goodwill is not expected to be deductible for income tax purposes. The purchase consideration was settled in cash.

If the acquisition had occurred on April 1, 2014, management estimates that consolidated revenue for the Company would have been LOGO 475,779 and the profit after taxes would have been LOGO 87,503 for twelve months ended March 31, 2015. The pro-forma amounts are not necessarily indicative of the results that would have occurred if the acquisition had occurred on dates indicated or that may result in the future.

 

9. Subsequent event

On April 21, 2015, the Board of Directors of the Company declared final dividend of LOGO 7 ($ 0.11) per equity share and ADR (350% on an equity share of par value of LOGO 2).

 

10. Statement of Assets and Liabilities

Statement of Assets and Liabilities

 

    

Particulars

   As at
March 31, 2015
     As at
March 31, 2014
 

I.

   EQUITY AND LIABILITIES      

1.

   Shareholder’s funds      
  

Share capital

     4,937         4,932   
  

Reserves and surplus

     403,045         338,567   
     

 

 

    

 

 

 
  407,982      343,499   
     

 

 

    

 

 

 

2.

Minority Interest   1,646      1,387   

3.

Non- current liabilities

Long-term borrowings

  12,707      10,909   

Deferred tax liabilities

  3,240      1,796   

Other long term liabilities

  3,729      5,107   

Long-term provisions

  6,700      3,454   
     

 

 

    

 

 

 
  26,376      21,266   
     

 

 

    

 

 

 

4.

Current liabilities

Short term borrowings

  66,206      40,683   

Trade payables and accrued expense

  58,745      51,917   

Other current liabilities

  29,525      29,700   

Short term provisions

  9,553      13,852   
     

 

 

    

 

 

 
  164,029      136,152   
     

 

 

    

 

 

 
TOTAL EQUITY AND LIABILITIES   600,033      502,304   
     

 

 

    

 

 

 

II

ASSETS

1.

Non-current assets

Fixed assets

Tangible assets

  54,206      51,449   

Intangible assets

  7,931      1,936   

Goodwill

  68,078      63,422   

Non-current investments

  3,867      2,676   

Deferred tax assets

  2,945      3,362   

Long-term loans and advances

  11,409      10,192   

Other non-current assets

  15,105      14,581   
     

 

 

    

 

 

 
  163,541      147,618   
     

 

 

    

 

 

 

2.

Current assets

Current investments

  53,908      60,557   

Inventories

  4,849      2,293   

Trade receivables

  91,531      85,392   

Cash and bank balances

  158,940      114,201   

Short-term loans and advances

  6,490      9,774   

Other current assets

  120,774      82,469   
     

 

 

    

 

 

 
  436,492      354,686   
     

 

 

    

 

 

 
TOTAL ASSETS   600,033      502,304   
     

 

 

    

 

 

 

 

11. Stand-alone information (Audited)

 

Particulars

   Quarter ended      Year ended  
     March 31,
2015
     December 31,
2014
     March 31,
2014
     March 31,
2015
     March 31,
2014
 

Income from Operations (Net)

     LOGO 106,515         LOGO 105,212         LOGO 104,018         LOGO 416,350         LOGO 391,333   

Profit before tax

     27,346         25,886         29,642         105,570         96,082   

Profit after tax

     21,416         19,923         23,531         81,931         73,874   

 

   

LOGO

  By order of the Board,  

WIPRO LIMITED

  for, Wipro Limited  

Regd. Office: Doddakanneli,

Place: Bangalore   Azim H Premji   Sarjapur Road, Bangalore - 560 035,

Date: April 21, 2015

  Chairman  

www.wipro.com

         

CIN: L32102KA1945PLC020800;

Registered Office: Wipro Limited, Doddakanneli, Sarjapur Road, Bangalore-560035, India

Website: www.wipro.com; Email id - info@wipro.com; Tel: +91-80-2844 0011; Fax: +91-80-2844 0054

 

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