EX-99.5

EX-99.5 6 d263503dex995.htm EX-99.5 EX-99.5

Exhibit 99.5

WIPRO LIMITED

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

STATUTORILY AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE FOR THE QUARTER AND SIX MONTHS ENDED SEPTEMBER 30, 2016 UNDER IFRS (IASB)

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


		Quarter ended									Six months ended						Year ended
	Particulars	September 30, 2016			June 30, 2016			September 30, 2015			September 30, 2016			September 30, 2015			March 31, 2016
1	Income from operations
	a) Net Sales/income from operations (net of excise duty)		138,938			136,976			125,668			275,914			249,374			516,307
	b) Other operating income		—			—			—			—			—			—

	Total income from operations (net)		138,938			136,976			125,668			275,914			249,374			516,307

2	Expenses
	a) Cost of materials consumed		—			—			—			—			1			2
	b) Purchase of stock-in-trade		6,206			7,580			6,241			13,786			14,241			30,552
	c) (Increase)/Decrease in inventories of finished stock, work-in-progress and stock in process		1,248			(1,069	)		(836	)		179			(739	)		(605	)
	d) Employee benefit expense		67,105			66,177			61,314			133,282			120,321			245,534
	e) Depreciation and amortisation expense		4,849			4,665			3,530			9,514			6,897			14,965
	f) Sub contracting/technical fees/third party application		19,919			20,360			15,880			40,279			30,441			67,769
	g) Other expenses		16,640			16,416			15,290			33,056			29,981			61,230

	Total expenses		115,967			114,129			101,419			230,096			201,143			419,447

3	Profit from operations before other income, finance costs and exceptional items (1-2)		22,971			22,847			24,249			45,818			48,231			96,860
4	Other Income		5,105			5,200			6,318			10,305			11,653			23,655
5	Profit from ordinary activities before finance costs and exceptional items (3+4)		28,076			28,047			30,567			56,123			59,884			120,515
6	Finance Costs		1,428			1,336			1,589			2,764			2,875			5,582
7	Profit from ordinary activities after finance costs but before exceptional items (5-6)		26,648			26,711			28,978			53,359			57,009			114,933
8	Exceptional items		—			—			—			—			—			—
9	Profit from ordinary activities before tax (7+8)		26,648			26,711			28,978			53,359			57,009			114,933
10	Tax expense		5,909			6,122			6,515			12,031			12,473			25,366
11	Net profit from ordinary activities after tax (9-10)		20,739			20,589			22,463			41,328			44,536			89,567
12	Extraordinary items (net of tax expense)		—			—			—			—			—			—
13	Net profit for the period (11+12)		20,739			20,589			22,463			41,328			44,536			89,567
14	Share of Profit/(loss) of associates		—			—			—						—			—
15	Minority interest		(67	)		(71	)		(54	)		(138	)		(210	)		(492	)
16	Net profit after taxes, minority interest and share of profit of associates (13+14+15)		20,672			20,518			22,409			41,190			44,326			89,075
17	Paid up equity share capital (Face value ₹ 2 per share)		4,861			4,941			4,940			4,861			4,940			4,941
18	Reserves excluding revaluation reserves																	460,219
19	EARNINGS PER SHARE (EPS) (of ₹ 2/- each) (not annualised) *Before extraordinary items*
	Basic (in ₹)		8.54			8.35			9.12			16.89			18.05			36.26
	Diluted (in ₹)		8.52			8.33			9.10			16.84			18.01			36.19

	*After extraordinary items* (of ₹ 2/- each) (not annualised)
	Basic (in ₹)		8.54			8.35			9.12			16.89			18.05			36.26
	Diluted (in ₹)		8.52			8.33			9.10			16.84			18.01			36.19

The audited consolidated interim financial results of the Company for the quarter ended September 30, 2016 have been approved by the Board of Directors of the Company at its meeting held on October 21, 2016. The statutory auditors have expressed an unqualified audit opinion on these financial results.

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”). Effective April 1, 2016, the Company has early adopted IFRS 9, Financial Instruments. The comparative information has been adjusted to effect this change retrospectively.

The total revenue from operations represent the aggregate revenue and includes foreign exchange gains/(losses), net amounting to ₹ 1,281, ₹ 984 and ₹ 533 for the quarter ended September 30, 2016, June 30, 2016 and September 30, 2015, respectively, ₹ 2,265 and ₹ 1,863 for the half year ended September 30, 2016 and September 30, 2015 and ₹ 3,867 for the year ended March 31, 2016.

4.	List of subsidiaries as of September 30, 2016 are provided in the table below:


Subsidiaries	Subsidiaries	Subsidiaries	Country of Incorporation
Wipro LLC (formerly Wipro, Inc.)			USA

	Wipro Gallagher Solutions, Inc.		USA
		Opus Capital Markets Consultants LLC	USA
		Wipro Promax Analytics Solutions LLC	USA

	Infocrossing, Inc.		USA
	Wipro Insurance Solutions LLC		USA
	Wipro Data Centre and Cloud Services, Inc.		USA
	Wipro IT Services, Inc.		USA
		HPH Holdings Corp. ^(A)	USA
Wipro Overseas IT Services Pvt. Ltd			India

Wipro Japan KK			Japan

Wipro Shanghai Limited			China

Wipro Trademarks Holding Limited			India

Wipro Travel Services Limited			India

Wipro Holdings (Mauritius) Limited			Mauritius
	Wipro Holdings UK Limited		U.K.
		Wipro Information Technology Austria GmbH^(A)	Austria
		Wipro Digital Aps ^(A)	Denmark
		Wipro Europe Limited	U.K.
		Wipro Promax Analytics Solutions (Europe) Limited	U.K.


Subsidiaries	Subsidiaries	Subsidiaries	Country of Incorporation
Wipro Cyprus Private Limited			Cyprus

	Wipro Doha LLC^#		Qatar
	Wipro Technologies S.A DE C.V		Mexico
	Wipro BPO Philippines LTD. Inc		Philippines
	Wipro Holdings Hungary Korlátolt Felelősségű Társaság		Hungary
	Wipro Technologies SA		Argentina
	Wipro Information Technology Egypt SAE		Egypt
	Wipro Arabia Limited*		Saudi Arabia
	Wipro Poland Sp. Z.o.o		Poland
	Wipro IT Services Poland Sp. z.o. o		Poland
	Wipro Technologies Australia Pty Ltd.		Australia
	Wipro Corporate Technologies Ghana Limited		Ghana
	Wipro Technologies South Africa (Proprietary) Limited		South Africa
		Wipro Technologies Nigeria Limited	Nigeria
	Wipro Information Technology Netherlands BV.		Netherland
		Wipro Portugal S.A.^(A)	Portugal
		Wipro Technologies Limited, Russia	Russia
		Wipro Technology Chile SPA	Chile
		Wipro Solutions Canada Limited	Canada
		Wipro Information Technology Kazakhstan LLP	Kazakhstan
		Wipro Technologies W.T. Sociedad Anonima	Costa Rica
		Wipro Outsourcing Services (Ireland) Limited	Ireland
		Wipro IT Services Ukraine LLC	Ukraine
		Wipro Technologies Norway AS	Norway
		Wipro Technologies VZ, C.A.	Venezuela
		Wipro Technologies Peru S.A.C	Peru
	Wipro Technologies SRL PT WT Indonesia Wipro Australia Pty Limited Wipro (Thailand) Co Limited Wipro Bahrain Limited WLL Wipro Gulf LLC		Romania Indonesia Australia Thailand Bahrain Sultanate of Oman
	Rainbow Software LLC		Iraq
	Cellent AG		Germany Germany


Subsidiaries	Subsidiaries	Subsidiaries	Country of Incorporation
		Cellent Mittelstandsberatung GmbH Cellent AG Austria^(A)	Austria

Wipro Networks Pte Limited	Wipro (Dalian) Limited Wipro Technologies SDN BHD		Singapore China Malaysia

Wipro Chengdu Limited			China

Wipro Airport IT Services Limited*			India

*	All the above direct subsidiaries are 100% held by the Company except that the Company holds 66.67% of the equity securities of Wipro Arabia Limited and 74% of the equity securities of Wipro Airport IT Services Limited

#	51% of equity securities of Wipro Doha LLC are held by a local share holder. However, the beneficial interest in these holdings is with the Company.

The Company controls ‘The Wipro SA Broad Based Ownership Scheme Trust’ and ‘Wipro SA Broad Based Ownership Scheme SPV (RF) (PTY) LTD incorporated in South Africa.

^(A)	Step Subsidiary details of Wipro Information Technogoty Austria GmbH, Wipro Europe Limited, Wipro Portugal S.A, Wipro Digital Aps, Cellent AG Austria and HPH Holdings Corp. are as follows:


Subsidiaries	Subsidiaries	Subsidiaries	Subsidiaries	Country of Incorporation
Wipro Information Technogoty Austria GmbH	Wipro Technologies Austria GmbH New Logic Technologies SARL			Austria Austria France

Wipro Europe Limited	Wipro UK Limited			U.K. U.K.

Wipro Portugal S.A.				Portugal
	Wipro Retail UK Limited			U.K.
	Wipro do Brasil			Brazil
	Technologia Ltda
	Wipro Technologies			Germany
	Gmbh			Brazil
	Wipro Do Brasil
	Sistemetas De Informatica Ltd


Subsidiaries	Subsidiaries	Subsidiaries	Subsidiaries	Country of Incorporation
Wipro Digital Aps	Designit A/S	Designit Denmark A/S Designit MunchenGmbH Designit Oslo A/S Designit Sweden AB Designit T.L.V Ltd. Designit Tokyo Ltd. Denextep Spain Digital, S.L	Designit Colombia S A S	Denmark Denmark Denmark Germany Norway Sweden Israel Japan Spain Colombia

Cellent AG Austria	Frontworx Informationstechnologie AG			Austria Austria
HPH Holdings Corp.	Healthplan Holdings, Inc. Healthplan Services Insurance Agency, Inc. Healthplan Services, Inc. Harrington Health Services Inc.			USA USA USA USA USA

5.	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 customers organized by industry verticals. Effective April 1, 2016, we realigned our industry verticals. The Communication Service Provider business unit was regrouped from the former GMT industry vertical into a new industry vertical named “Communications”. The Media business unit from the former GMT industry vertical has been realigned with the former RCTG industry vertical which has been renamed as “Consumer Business Unit” industry vertical. Further, the Network Equipment Provider business unit of the former GMT industry vertical has been realigned with the Manufacturing industry vertical to form the “Manufacturing and Technology” industry vertical.

The revised industry verticals are as follows: Finance Solutions (BFSI), Healthcare, Lifesciences & Services (HLS), Consumer (CBU), Energy, Natural Resources & Utilities (ENU), Manufacturing & Technology (MNT), Communications (COMM). IT Services segment 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 offerings 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.

Comparative information has been restated to give effect to the above changes.

IT Products: The Company is 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. Revenue relating to the above items is reported as revenue from the sale of IT Products.

The Chairman and Managing Director 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 operating 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 September 30, 2016, June 30, 2016 and September 30, 2015, half year ended September 30, 2016 and September 30, 2015 and year ended March 31, 2016 is as follows:


	Quarter ended									Six months ended						Year ended
	September 30, 2016			June 30, 2016			September 30, 2015			September 30, 2016			September 30, 2015			March 31, 2016
Particulars	Audited			Audited			Audited			Audited			Audited			Audited
Revenue
IT Services
BFSI		33,583			33,630			32,252			67,213			63,273			128,147
HLS		20,883			19,931			13,746			40,814			26,734			58,358
CBU		20,708			20,725			19,510			41,433			38,210			79,514
ENU		16,881			17,356			17,664			34,237			35,240			70,866
MNT		29,463			29,538			28,146			59,001			55,109			113,422
COMM		9,848			9,912			9,110			19,760			17,635			37,009
Others		—			—			—			—			—			—

Total of IT Services		131,366			131,092			120,428			262,458			236,201			487,316
IT Products		7,666			5,930			5,442			13,596			13,616			29,722
Reconciling Items		(94	)		(46	)		(202	)		(140	)		(443	)		(731	)

Total		138,938			136,976			125,668			275,914			249,374			516,307

Segment Result
IT Services
BFSI		6,379			6,994			6,882			13,373			13,829			27,902
HLS		3,234			2,856			3,023			6,090			5,777			12,009
CBU		3,584			3,775			3,238			7,359			6,320			13,590
ENU		3,443			3,025			3,272			6,468			6,859			13,475
MNT		6,175			5,954			6,370			12,129			12,203			24,223
COMM		1,594			1,502			1,554			3,096			2,801			5,990
Others		—			—			—			—			—			—
Unallocated		(1,037	)		(837	)		277			(1,874	)		808			1,064

Total of IT Services		23,372			23,269			24,616			46,641			48,597			98,253
IT Products		(298	)		(368	)		(244	)		(666	)		(141	)		(1,007	)
Reconciling Items		(103	)		(54	)		(123	)		(157	)		(225	)		(386	)

Total		22,971			22,847			24,249			45,818			48,231			96,860
Finance Expense		(1,428	)		(1,336	)		(1,589	)		(2,764	)		(2,875	)		(5,582	)
Finance and Other Income		5,105			5,200			6,318			10,305			11,653			23,655

Profit before tax		26,648			26,711			28,978			53,359			57,009			114,933

Notes:

Effective April 1, 2016, CODM’s review of the segment results is measured after including the amortization charge for acquired intangibles to the respective segments. Such costs were classified under reconciling items till the year ended March 31, 2016. Comparative information has been restated to give effect to the same.

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

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.

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

For the purpose of segment reporting, the Company has included the impact of “foreign exchange gains / (losses), net amounting to ₹ 1,281, ₹ 984 and ₹ 533 for the quarter ended September 30, 2016, June 30, 2016 and September 30, 2015, respectively, ₹ 2,265 and ₹ 1,863 for the half year ended September 30, 2016 and September 30, 2015 and ₹ 3,867 for the year ended March 31, 2016 in revenues (which is reported as a part of operating profit in the statement of income).

For evaluating performance of the individual operating 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 operating segments is reported in reconciling items.

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 payments 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.

6.	Consolidated Statement of Assets and liabilities


	Particulars	As at September 30, 2016		As at March 31, 2016
I.	EQUITY AND LIABILITIES
1.	Shareholder’s funds
	Share capital		4,861		4,941
	Reserves and surplus		478,466		460,219

			483,327		465,160

2.	Minority Interest		2,363		2,224

3.	Non- current liabilities
	Long-term borrowings		18,004		17,361
	Deferred tax liabilities		4,436		5,108
	Other long term liabilities		7,295		7,344
	Long-term provisions		7,809		8,245

			37,544		38,058

4.	Current liabilities
	Short term borrowings		106,600		107,860
	Trade payables and accrued expense		68,487		68,187
	Other current liabilities		30,426		34,237
	Short term provisions		9,996		8,277

			215,509		218,561

	TOTAL EQUITY AND LIABILTIES		738,743		724,003

II	ASSETS
1.	Non-current assets
	Fixed assets
	Tangible assets		69,103		64,952
	Intangible assets		14,479		15,841
	Goodwill		101,864		101,991
	Non-current investments		5,092		4,907
	Deferred tax assets		3,530		4,286
	Long-term loans and advances		11,938		11,751
	Other non-current assets		16,873		16,088

			222,879		219,816

2.	Current assets
	Current investments		258,499		204,244
	Inventories		5,215		5,390
	Trade receivables		101,170		100,976
	Cash and bank balances		55,167		99,049
	Short-term loans and advances		8,131		7,812
	Other current assets		87,682		86,716

			515,864		504,187

	TOTAL ASSETS		738,743		724,003

7.	Buyback of equity shares

During the current period, the Company has concluded the buyback of 40 million equity shares as approved by the Board of Directors on April 20, 2016. This has resulted in a total cash outflow of ₹ 25,000. In line with the requirement of the Companies Act 2013, an amount of ₹ 14,254 and ₹ 10,666 has been utilized from the share premium account and retained earnings respectively. Further, capital redemption reserves (included in other reserves) of ₹ 80 (representing the nominal value of the shares bought back) has been created as an apportionment from retained earnings. Consequent to such buy back, share capital has reduced by ₹ 80.

8.	Event after the reporting period

On October 20, 2016 the Company entered in to definitive agreement to acquire Appirio Inc., a global cloud services company for a consideration of US $ 500 million. The acquisition will strengthen Wipro’s cloud transformation practices.


By order of the Board,				For Wipro Limited

				Azim H Premji
Place: Bangalore				Chairman &
Date: October 21, 2016				Managing Director