Table of Contents

CONSOLIDATED BALANCE SHEETS

(in millions, except share amounts)
 
     September 26, 2009    September 27, 2008  
ASSETS:      
Current assets:      
Cash and cash equivalents    $ 5,263   $ 11,875  
Short-term marketable securities      18,201     10,236  
Accounts receivable, less
allowances of $52 and $47,
respectively      3,361     2,422  
Inventories      455     509  
Deferred tax assets      1,135     1,044  
Other current assets      3,140     3,920  
               
Total current assets      31,555     30,006  
Long-term marketable securities      10,528     2,379  
Property, plant and equipment, net      2,954     2,455  
Goodwill      206     207  
Acquired intangible assets, net      247     285  
Other assets      2,011     839  
               
Total assets    $ 47,501   $ 36,171  
               
LIABILITIES AND
SHAREHOLDERS’ EQUITY:      
Current liabilities:      
Accounts payable    $ 5,601   $ 5,520  
Accrued expenses      3,852     4,224  
Deferred revenue      2,053     1,617  
               
Total current liabilities      11,506     11,361  
Deferred revenue – non-current      853     768  
Other non-current liabilities      3,502     1,745  
               
Total liabilities      15,861     13,874  
               
Commitments and contingencies      
Shareholders’ equity:      
Common stock, no par value;
1,800,000,000 shares
authorized; 899,805,500 and
888,325,973 shares issued and
outstanding, respectively      8,210     7,177  
Retained earnings      23,353     15,129  
Accumulated other
comprehensive income/(loss)      77     (9) 
               
 Total shareholders’ equity      31,640     22,297  
               
Total liabilities and
shareholders’ equity    $ 47,501   $ 36,171  
               

See accompanying Notes to Consolidated Financial Statements.

 
22

Table of Contents

CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except share amounts which are reflected in thousands and per share amounts)
 
Three years ended September 26, 2009    2009    2008    2007
Net sales    $ 42,905   $ 37,491   $ 24,578
Cost of sales      25,683     24,294     16,426
                   
Gross margin      17,222     13,197     8,152
                   
Operating expenses:         
Research and development      1,333     1,109     782
Selling, general and administrative      4,149     3,761     2,963
                   
Total operating expenses      5,482     4,870     3,745
                   
Operating income      11,740     8,327     4,407
Other income and expense      326     620     599
                   
Income before provision for income taxes      12,066     8,947     5,006
Provision for income taxes      3,831     2,828     1,511
                   
Net income    $ 8,235   $ 6,119   $ 3,495
                   
Earnings per common share:         
Basic    $ 9.22   $ 6.94   $ 4.04
Diluted    $ 9.08   $ 6.78   $ 3.93
Shares used in computing earnings per share:         
Basic      893,016     881,592     864,595
Diluted      907,005     902,139     889,292
 See accompanying Notes to Consolidated Financial Statements.
 
23

Table of Contents

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(in millions, except share amounts which are reflected in thousands)
 
     Common Stock       Accum-  
ulated
Other Total
Compre- Share-
Retained hensive holders’
     Shares    Amount     Earnings     Income     Equity  
Balances as of September 30, 2006    855,263   $ 4,355     $ 5,607     $ 22     $ 9,984  
Components of comprehensive
income:            
Net income    —       —         3,495       —         3,495  
Change in foreign currency
translation    —       —         —         51       51  
Change in unrealized loss on
available-for-sale securities,
net of tax    —       —         —         (7)     (7) 
Change in unrealized gain on
derivative instruments, net
of tax    —       —         —         (3)     (3) 
                
Total comprehensive
income               3,536  
Stock-based compensation    —       251       —         —         251  
Common stock issued under
stock plans, net of shares
withheld for employee taxes    17,066     364       (2)     —         362  
Tax benefit from employee stock
plan awards    —       398       —         —         398  
                                 
Balances as of September 29, 2007    872,329     5,368       9,100              63       14,531  
                                 
Cumulative effect of change in
accounting principle    —       45       11       —         56  
Components of comprehensive
income:            
Net income    —       —         6,119         6,119  
Change in foreign currency
translation    —       —         —         (28)     (28) 
Change in unrealized loss on
available-for-sale securities,
net of tax    —       —         —         (63)     (63) 
Change in unrealized gain on
derivative instruments, net
of tax    —       —         —         19       19  
                
 Total comprehensive
income               6,047  
Stock-based compensation    —       513       —         —         513  
Common stock issued under
stock plans, net of shares
withheld for employee taxes    15,888     460       (101)     —         359  
Issuance of common stock in
connection with an asset
acquisition    109     21       —         —         21  
Tax benefit from employee stock
plan awards    —       770       —         —         770  
                                 
Balances as of September 27, 2008    888,326     7,177       15,129       (9)     22,297  
                                 
Components of comprehensive
income:            
Net income    —       —         8,235       —         8,235  
Change in foreign currency
translation    —       —         —         (14)     (14) 
Change in unrealized loss on
available-for-sale securities,
net of tax    —       —         —         118       118  
Change in unrealized gain on
derivative instruments, net
of tax    —       —         —         (18)     (18) 
                
Total comprehensive
income               8,321  
Stock-based compensation    —       707       —         —         707  
Common stock issued under
stock plans, net of shares
withheld for employee taxes    11,480     404       (11)     —         393  
Tax benefit from employee stock
plan awards, including transfer
pricing adjustments    —       (78)     —         —         (78) 
                                 
Balances as of September 26, 2009    899,806   $   8,210     $ 23,353     $ 77     $ 31,640  
                                 

See accompanying Notes to Consolidated Financial Statements.

 
24

Table of Contents

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)
 
Three years ended September 26, 2009    2009     2008     2007  
Cash and cash equivalents, beginning of the year    $ 11,875     $ 9,352     $ 6,392  
                    
Operating Activities:       
Net income      8,235       6,119       3,495  
 Adjustments to reconcile net income to cash
generated by operating activities:       
Depreciation, amortization and accretion      734       496       327  
Stock-based compensation expense      710       516       242  
Deferred income tax expense      1,040       398       73  
Loss on disposition of property, plant and
equipment      26       22       12  
Changes in operating assets and liabilities:       
Accounts receivable, net      (939)     (785)     (385) 
Inventories      54       (163)     (76) 
Other current assets      749       (274)     (1,279) 
Other assets      (902)     289       285  
Accounts payable      92       596       1,494  
Deferred revenue      521       718       566  
Other liabilities      (161)     1,664       716  
                   
Cash generated by operating activities      10,159       9,596         5,470  
                   
Investing Activities:       
Purchases of marketable securities      (46,724)     (22,965)     (11,719) 
Proceeds from maturities of marketable securities      19,790       11,804       6,483  
Proceeds from sales of marketable securities      10,888       4,439       2,941  
Purchases of other long-term investments      (101)     (38)     (17) 
Payments made in connection with business
acquisitions, net of cash acquired      —         (220)     —    
Payment for acquisition of property, plant and
equipment      (1,144)     (1,091)     (735) 
Payment for acquisition of intangible assets      (69)     (108)     (251) 
Other      (74)     (10)     49  
                   
Cash used in investing activities      (17,434)     (8,189)     (3,249) 
                   
Financing Activities:       
Proceeds from issuance of common stock      475       483       365  
Excess tax benefits from stock-based compensation      270       757       377  
Cash used to net share settle equity awards      (82)     (124)     (3) 
                   
Cash generated by financing activities      663       1,116       739  
                   
(Decrease)/increase in cash and cash equivalents      (6,612)     2,523       2,960  
                   
Cash and cash equivalents, end of the year    $ 5,263     $ 11,875     $ 9,352  
                   
Supplemental cash flow disclosures:       
Cash paid for income taxes, net    $ 2,997     $ 1,267     $ 863  

See accompanying Notes to Consolidated Financial Statements.

 
25

Table of Contents

Notes to Consolidated Financial Statements

Note 1 – Summary of Significant Accounting Policies
Apple Inc. and its wholly-owned subsidiaries (collectively “Apple” or the “Company”) design,
manufacture, and market personal computers, mobile communication devices, and portable digital
music and video players and sell a variety of related software, third-party digital content and
applications, services, peripherals, and networking solutions. The Company sells its products
worldwide through its online stores, its retail stores, its direct sales force, and third-party wholesalers,
resellers and value-added resellers. In addition, the Company sells a variety of third-party Macintosh (“Mac”),
iPhone and iPod compatible products including application software, printers, storage devices, speakers,
headphones, and various other accessories and supplies through its online and retail stores. The Company sells
to consumer, small and mid-sized business (“SMB”), education, enterprise, government and creative customers.

Basis of Presentation and Preparation

The accompanying consolidated financial statements include the accounts of the Company. Intercompany
accounts and transactions have been eliminated. The preparation of these consolidated financial statements in
conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make
estimates and assumptions that affect the amounts reported in these consolidated financial statements and
accompanying notes. Actual results could differ materially from those estimates.

Certain prior year amounts in the consolidated financial statements and notes thereto have been reclassified to
conform to the current year’s presentation. During the first quarter of 2009, the Company reclassified
$2.4 billion of certain fixed-income securities from short-term marketable securities to long-term marketable
securities in the September 27, 2008 Consolidated Balance Sheet. The reclassification resulted from a change in
accounting presentation for certain investments based on contractual maturity dates, which more closely reflects
the Company’s assessment of the timing of when such securities will be converted to cash. As a result of this
change, marketable securities with maturities less than 12 months are classified as short-term and marketable
securities with maturities greater than 12 months are classified as long-term. There have been no changes in the
Company’s investment policies or practices associated with this change in accounting presentation. See Note 3,
“Financial Instruments” of this Form 10-K for additional information.

The Company’s fiscal year is the 52 or 53-week period that ends on the last Saturday of September. The
Company’s fiscal years 2009, 2008 and 2007 ended on September 26, 2009, September 27, 2008 and
September 29, 2007, respectively, and included 52 weeks each. An additional week is included in the first fiscal
quarter approximately every six years to realign fiscal quarters with calendar quarters. Unless otherwise stated,
references to particular years or quarters refer to the Company’s fiscal years ended in September and the
associated quarters of those fiscal years.

In May 2009, the Financial Accounting Standards Board (“FASB”) established general accounting standards
and disclosure for subsequent events. The Company adopted FASB Accounting Standards Codification
(“ASC”) 855, Subsequent Events (formerly referenced as Statement of Financial Accounting Standards
(“SFAS”) No. 165, Subsequent Events), during the third quarter of 2009. The Company has evaluated
subsequent events through the date and time the financial statements were originally issued on October 27,
2009. The Company has further evaluated subsequent events for disclosure only through the date and time the
financial statements were reissued on January 25, 2010.

Retrospective Adoption of New Accounting Principles

In September 2009, the FASB amended the accounting standards related to revenue recognition for
arrangements with multiple deliverables and arrangements that include software elements (“new accounting
principles”). The Company adopted the new accounting principles on a retrospective basis during the first
quarter of 2010.
 
26

Table of Contents

Under the historical accounting principles, the Company was required to account for sales of both iPhone and
Apple TV using subscription accounting because the Company indicated it might from time-to-time provide
future unspecified software upgrades and features for those products free of charge. Under subscription
accounting, revenue and associated product cost of sales for iPhone and Apple TV were deferred at the time of
sale and recognized on a straight-line basis over each product’s estimated economic life. This resulted in the
deferral of significant amounts of revenue and cost of sales related to iPhone and Apple TV.

The new accounting principles generally require the Company to account for the sale of both iPhone and Apple
TV as two deliverables. The first deliverable is the hardware and software essential to the functionality of the
hardware device delivered at the time of sale, and the second deliverable is the right included with the purchase
of iPhone and Apple TV to receive on a when-and-if-available basis future unspecified software upgrades and
features relating to the product’s essential software. The new accounting principles result in the recognition of
substantially all of the revenue and product costs from the sales of iPhone and Apple TV at the time of sale.
Additionally, the Company is required to estimate a standalone selling price for the unspecified software
upgrade rights included with the sale of iPhone and Apple TV and recognizes that amount ratably over the 24-
month estimated life of the related hardware device.

The financial statements and notes to the financial statements presented herein have been adjusted to reflect the
retrospective adoption of the new accounting principles. Refer to the “Explanatory Note” immediately preceding
Part II, Item 6 and Note 2, “Retrospective Adoption of New Accounting Principles” in this Form 10-K for
additional information on the impact of adoption.

Financial Instruments
Cash Equivalents and Marketable Securities
All highly liquid investments with maturities of three months or less at the date of purchase are classified as
cash equivalents. The Company’s debt and marketable equity securities have been classified and accounted for
as available-for-sale. Management determines the appropriate classification of its investments in debt securities
at the time of purchase and reevaluates the available-for-sale designations as of each balance sheet date. The
Company classifies its marketable debt securities as either short-term or long-term based on each instrument’s
underlying contractual maturity date. Marketable securities with maturities of less than 12 months are classified
as short-term and marketable securities with maturities greater than 12 months are classified as long-term. These
securities are carried at fair value, with the unrealized gains and losses, net of taxes, reported as a component of
shareholders’ equity. The cost of securities sold is based upon the specific identification method.

Derivative Financial Instruments

During the second quarter of 2009, the Company adopted FASB ASC 815, Derivatives and Hedging (formerly
referenced as SFAS No. 161, Disclosures about Derivative Instruments and Hedging Activities – an amendment
of FASB Statement No. 133), which requires additional disclosures about the Company’s objectives and
strategies for using derivative instruments, how the derivative instruments and related hedged items are
accounted for, and how the derivative instruments and related hedged item affect the financial statements.

The Company accounts for its derivative instruments as either assets or liabilities and carries them at fair value.
Derivatives that are not defined as hedges must be adjusted to fair value through earnings.

For derivative instruments that hedge the exposure to variability in expected future cash flows that are
designated as cash flow hedges, the effective portion of the gain or loss on the derivative instrument is reported
as a component of accumulated other comprehensive income in shareholders’ equity and reclassified into
earnings in the same period or periods during which the hedged transaction affects earnings. The ineffective
portion of the gain or loss on the derivative instrument is recognized in current earnings. To receive hedge
accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future cash
flows on
 
Balance sheet of wipro
(Rs. in Million)
As of March 31, Schedule 2005 2004

SOURCES OF FUNDS

Shareholders' Funds
Share Capital 1 1,407.14 465.52
Share application money pending allotment 12.05 -
Reserves and Surplus 2 47,517.29 34,610.39
48,936.48 35,075.91
Loan Funds
Secured loans 3 215.89 947.47
Unsecured loans 4 405.03 59.41
620.92 1,006.88
Total 49,557.40 36,082.79
APPLICATION OF FUNDS
Fixed Assets
Goodwill 85.54 85.54
Gross block 5 17,549.33 13,251.22
Less : Depreciation 8,555.26 6,786.59
Net Block 8,994.07 6,464.63
Capital work-in-progress and advances 2,502.39 1,397.12
11,582.00 7,947.29
Investments 6 28,595.11 24,560.33
Deferred Tax Assets (refer Note 11) 318.56 315.53
Current Assets, Loans and Advances
Inventories 7 1,273.74 1,020.79
Sundry Debtors 8 14,065.14 10,592.61
Cash and Bank balances 9 5,368.96 2,900.94
Loans and advances 10 5,675.19 5,523.44
26,383.03 20,037.78
Less : Current Liabilities and Provisions
Liabilities 11 12,084.35 8,175.06
Provisions 12 5,236.95 8,603.08
17,321.30 16,778.14
Net Current Assets 9,061.73 3,259.64
Total 49,557.40 36,082.79

SIGNIFICANT ACCOUNTING POLICIES AND NOTES TO ACCOUNTS 19

As per our report attached
for N.M. Raiji & Co.,
Chartered Accountants
J.M. Gandhi
Partner
Membership No. 37924
Mumbai, April 22, 2005
For and on behalf of the Board of Directors
Azim Hasham Premji Vivek Paul N. Vaghul
Chairman Vice Chairman Director
Suresh C. Senapaty V. Ramachandran P.M. Sinha
Corporate Executive Vice President Company Secretary Director
& Chief Financial Officer
Bangalore, April 22, 2005
}
WIPRO LIMITED
75
PROFIT AND LOSS ACCOUNT
(Rs. in Million, except share data)
Schedule Year ended March 31,
2005 2004
INCOME
Gross Sales and Services 72,761.80 51,881.93
Less: Excise Duty 430.19 555.13
Net Sales and Services 72,331.61 51,326.80
Other Income 13 935.34 1,269.92
Total 73,266.95 52,596.72
EXPENDITURE
Cost of goods sold 14 47,532.40 34,711.37
Selling and Marketing Expenses 15 5,105.43 4,618.46
General and Administration Expenses 16 3,003.21 2,409.25
Interest 17 55.68 35.17
Total 55,696.72 41,774.25
PROFIT BEFORE TAXATION 17,570.23 10,822.47
Provision for Taxation (refer Note 10) 2,622.02 1,673.67
PROFIT FOR THE YEAR 14,948.21 9,148.80

Appropriations

Proposed Dividend 3,517.85 931.04

Proposed One-Time Dividend - 5,818.98
Total Dividend 3,517.85 6,750.02
Tax on distribution of Dividend 493.38 864.85
TRANSFER TO GENERAL RESERVE 10,936.98 1,533.93
Earnings per Share - EPS
(PY : Adjusted EPS for bonus issue in ratio of 2:1)
Basic (in Rs.) 21.48 13.19
Diluted (in Rs.) 21.29 13.17
Number of shares for calculating EPS
(PY : Adjusted for bonus issue in ratio of 2:1)
Basic 695,777,186 693,870,390
Diluted 702,167,128 694,545,321
SIGNIFICANT ACCOUNTING POLICIES
AND NOTES TO ACCOUNTS 19
As per our report attached
for N.M. Raiji & Co.,
Chartered Accountants
J.M. Gandhi
Partner
Membership No. 37924
Mumbai, April 22, 2005
For and on behalf of the Board of Directors
Azim Hasham Premji Vivek Paul N. Vaghul
Chairman Vice Chairman Director
Suresh C. Senapaty V. Ramachandran P.M. Sinha
Corporate Executive Vice President Company Secretary Director
& Chief Financial Officer
Bangalore, April 22, 2005
}
WIPRO LIMITED
76
(Rs. in Million, except share data)

As of March 31,
2005 2004
SCHEDULE 1 SHARE CAPITAL
Authorised
750,000,000 (2004: 375,000,000) Equity shares of Rs. 2 each 1,500.00 750.00
25,000,000 (2004: 25,000,000) 10.25% Redeemable Cumulative
Preference Shares of Rs. 10 each 250.00 250.00
1,750.00 1,000.00
Issued, subscribed and paid-up
703,570,522 (2004: 232,759,152) equity shares of Rs. 2 each 1,407.14 465.52
Total 1,407.14 465.52
Notes :
Of the above equity shares :
i) 692,537,085 equity shares/American Depository Receipts (ADRs) (2004 : 226,905,825), have been
allotted as fully paid bonus
shares/ADRs by capitalization of Share Premium of Rs. 32.64 and General Reserves of Rs. 1,352.44.
ii) 1,325,525 equity shares (2004 : 1,325,525) have been allotted as fully paid-up, pursuant to a scheme
of amalgamation, without
payment being received in cash.
iii) 3,162,500 shares representing 3,162,500 American Depository Receipts issued during 2000-2001
pursuant to American Depository
offering by the Company.
iv) 5,620,412 (2004 : 440,302) equity share issued pursuant to Employee Stock Option Plan.

As of March 31,
SCHEDULE 2 RESERVES AND SURPLUS 2005 2004
Capital Reserve 9.50 9.50
Capital Redemption Reserve 250.04 250.04
Share Premium
As at April 1, 6,732.28 6,492.85
Add : Received on exercise of stock options by employees 2,566.77 239.43
9,299.05 6,732.28
Restricted Stock Units Reserve (a)
Cumulative charge to Profit and Loss Account 334.41 -
General Reserve
As at April 1, 27,618.57 26,084.64
Add : Transfer from Profit and Loss Account 10,936.98 1,533.93
Less : Amount utilised for Bonus shares 931.26 -
37,624.29 27,618.57
Summary
As at April 1, 2004 34,610.39 32,837.03
As at March 31, 2005 47,517.29 34,610.39
(a) Represents cumulative charge to profit and loss account to be treated as share premium at the time
of allotment of shares.
WIPRO LIMITED
77
(Rs. in Million)
Note As of March 31,
SCHEDULE 3 SECURED LOANS Reference 2005 2004
From Banks
Cash credit facility (a) 214.21 945.79
Development loan from Karnataka Government (b) 1.68 1.68
Total 215.89 947.47
Notes :
(a) Secured by hypothecation of stock-in-trade, book debts, stores and spares, and secured / to be
secured by a second mortgage over
certain immovable properties.
(b) Secured by a pari-passu second mortgage over immovable properties at Mysore and hypothecation
of movable properties other than
inventories, book debts and specific equipments referred to in Note (a) above.

As of March 31,
SCHEDULE 4 UNSECURED LOANS 2005 2004
Cash credit facility - Overseas 349.76 -
Other Loans and Advances
Interest free loan from state government 54.02 58.16
Interest free loan from state financial institutions 1.25 1.25
Total 405.03 59.41
WIPRO LIMITED
78
SCHEDULE 5 FIXED ASSETS (Rs. in Million)
PARTICULARS GROSS BLOCK PROVISION FOR DEPRECIATION NET BLOCK
As on Additions Deductions/ As on As on Depreciation Deductions/ As on As on As on
April 1, adjustments March 31, April 1, for the adjustments March 31, March 31, March 31,
2004 2005 2004 period 2005 2005 2004
Land 741.52 529.83 5.57 1,265.78 12.58 0.52 11.00 2.10 1,263.68 728.94
Buildings 2,553.99 860.38 1.80 3,412.57 159.37 53.64 0.79 212.22 3,200.35 2,394.62
Railway siding 0.01 - - 0.01 0.01 - - 0.01 - -
Plant & Machinery 7,318.57 2,209.07 25.10 9,502.54 5,200.16 1,291.49 11.36 6,480.29 3,022.25
2,118.41
Furniture, Fixture
and Equipments 1,815.14 475.93 23.43 2,267.64 1,036.16 316.67 11.69 1,341.14 926.50 778.98
Vehicles 759.92 349.45 90.65 1,018.72 361.84 183.57 56.16 489.25 529.47 398.08
Technical Know-how 10.38 - - 10.38 10.38 - - 10.38 - -
Patents, Trademarks
& Rights 51.69 20.00 - 71.69 6.09 13.78 - 19.87 51.82 45.60
Total 13,251.22 4,444.66 146.55 17,549.33 6,786.59 1,859.67 91.00 8,555.26 8,994.07 6,464.63
}
}
WIPRO LIMITED
79
(Rs. in Million except share data)

As of March 31,
Number Face value 2005 2004
SCHEDULE 6 INVESTMENTS
All shares are fully paid up unless otherwise stated
Investments - Long Term (at cost)
Investments in subsidiary companies
Unquoted
Equity Shares
Wipro Consumer Care Limited 50,000 Rs. 10 0.50 0.50
Wipro Chandrika Limited 900,000 Rs. 10 6.79 0.50
(Additional shares acquired - 629,173 Nos.
& Bonus shares allotted - 220,827 Nos.)
Wipro Trademarks Holding Limited 94,000 Rs. 10 22.13 0.50
Wipro Travel Services Limited 66,171 Rs. 10 0.66 0.66
Wipro HealthCare IT Limited 3,410,002 Rs. 10 243.88 243.88
Wipro BPO Solutions Limited 26,569,139 Rs. 10 1,833.96 1,234.64
(formerly Wipro Spectramind Services Limited)
Wipro Fluid Power Limited 9,047,600 Rs. 10 102.97 102.97
Wipro Holding Mauritius Limited 2,760,000 $ 1 132.44 132.44
Wipro Inc., USA 15,111 $ 2,500 1,672.51 1,040.89
Wipro Japan KK, Japan 650 JPY 50,000 9.74 9.74
Wipro Shanghai Limited, China not applicable 9.29 -
(limited liability company)
4,034.87 2,766.72
Preference Shares
9% cumulative redeemable preference shares held in
Wipro Trademarks Holding Limited 1,800 Rs. 10 0.02 0.02
Spectramind Limited, Bermuda (zero coupon, non-redeemable
convertible series A preferred shares) 963,092,931 $ 0.01 3,384.17 3,384.17
1% cumulative redeemable preference shares in
Wipro Fluid Power Limited 3,600,000 Rs. 10 360.00 360.00
3,744.19 3,744.19
Investments in equity shares of other companies - Unquoted
Wipro GE Medical Systems Private Ltd. (refer Note below) 4,900,000 Rs. 10 49.00 49.00
WeP Peripherals Ltd. 7,060,000 Rs. 10 94.60 94.60
143.60 143.60
Other Investments Unquoted
Investments in Debentures of Paradyne Infotech 126,000 12.60 -
Quoted
Investments – short term :
In money market mutual funds
UTI MF (346,057 units purchased during the year) 759,669 815.30 562.63
Alliance Capital Mutual Fund (50,143,931 units purchased/
35,694,601 redeemed during the year) - - 505.19
Prudential ICICI Mutual Fund (196,837,250 units purchased/
209,635,911 units redeemed during the year) 114,165,589 1,551.22 2,260.39
HDFC Mutual Fund 141,244,155 1,735.61 2,602.87
Standard Chartered Mutual Fund (41,090,000 units purchased/
130,152,327 units redeemed during the year) 166,729,514 1,673.24 2,066.53
Reliance Mutual Fund (200,800,036 units purchased/
202,638,921 units during the year) 212,008,193 2,349.60 1,765.38
Franklin - - 1,576.42
Templeton Floating Fund (98,883,661 units purchased/
52,727,509 units redeemed during the year) 121,408,763 1,216.25 157.79
Franklin Templeton India Mutual Fund - - 100.85
Deutsche MF (29,893,579 units redeemed during the year) 105,340,142 1,070.87 577.80
ING MF (10,078,972 units redeemed during the year) 39,308,562 400.00 367.94
Can Liquid MF (21,155,167 units purchased during the year) 63,252,568 750.00 499.25
Sundaram MF (10,508,207 redeemed during the year) 51,937,149 672.40 172.34
Cholamandalam Mutual Fund 43,830,542 524.57 176.57
Kotak Mutual Fund (43,227,664 units purchased during the year) 156,576,993 1,837.04 1,317.54
J M Mutual Fund (14,597,516 units purchased/23,950,024 units
redeemed during the year) 101,065,101 1,012.21 1,406.29
WIPRO LIMITED
80
(Rs. in Million except share data)

As of March 31,
Number Face value 2005 2004
SCHEDULE 7 INVENTORIES
Stores and Spares 20.22 21.19
Raw Materials 619.37 458.35
Stock in Process 27.44 38.01
Finished Goods 606.71 503.24
Total 1,273.74 1,020.79
Basis of stock valuation :
i) Raw materials, stock in process and Stores & Spares at or below cost.
ii) Finished Goods at cost or net realisable value, whichever is lower.
DSP Merrill Lynch Mutual Fund 67,294,739 673.62 459.33
SBI Insta Cash (23,950,024 units purchased during the year) 32,597,065 331.31 -
HSBC Cash fund (73,881,276 units purchased / 36,488,276
redeemed during the year) 126,214,854 1,165.01 -
Birla Mutual Fund (185,335,620 units purchased / 79,842,212 units
redeemed during the year) 106,192,909 1,063.04 1,438.91
Tata Mutual Fund (82,821,449 units purchased / 171,017,578 units
redeemed during the year) 1,313,524 1,512.51 -
Principal AMC Mutual Fund (90,234,457 units purchased/75,644,750
units redeemed during year) 40,789,669 414.25 -
20,768.05 18,014.02
Total 28,703.31 24,668.53
Less : Provision for diminution in value of long term investments 108.20 108.20
Total 28,595.11 24,560.33
 Aggregate book value of quoted investments 20,768.05 18,014.02
Aggregate book value of unquoted investments (net of provision) 7,827.06 6,546.31
Aggregate market value of quoted investments and
investments in mutual funds 20,887.05 18,038.44
Note : Equity investments in this company carry certain restrictions on
transfer of shares that is normally provided for in joint venture agreement.

As of March 31,
2005 2004
(Rs. in Million)
SCHEDULE 8 SUNDRY DEBTORS
(Unsecured)
Over Six Months
Considered Good 494.38 480.67
Considered Doubtful 785.38 687.04
1,279.76 1,167.71
Others
Considered Good 13,570.76 10,111.94
Considered Doubtful - 30.76
13,570.76 10,142.70
Less : Provision for Doubtful Debts 785.38 717.80
Total 14,065.14 10,592.61
As of March 31,
2005 2004
(Rs. in Million)
WIPRO LIMITED
81
(Rs. in Million)
As of March 31,
2005 2004
SCHEDULE 9 CASH AND BANK BALANCES
Cash and Cheques on hand 108.08 207.84
Balance with scheduled banks
On Current Account 2,404.42 539.41
In Deposit Account 0.08 0.08
Balance with other banks in Current Account
Bank of America, USA 65.12 84.96
Bank of Montreal, Canada 0.29 (3.81)
RABO Bank, Netherlands - 1.68
Midland Bank, UK 392.64 437.76
Nations Bank, UK - 5.65
Saudi British Bank, Saudi Arabia 17.96 24.17
Standard Chartered Bank, UAE 1.16 0.97
Wells Fargo, USA 2,354.35 1,602.23
CCF Paris AG Centrale, France 5.89 -
Chase Manhatten, USA 7.50 -
Uni Credit Banca - Italy 11.47 -
Total 5,368.96 2,900.94
Maximum balances during the year
Bank of America, USA 120.36 183.99
Bank of Montreal, Canada 8.99 39.18
RABO Bank, Netherlands 1.68 1.68
Midland Bank, UK 453.87 437.76
Nations Bank, UK 5.65 5.65
Saudi British Bank, Saudi Arabia 17.96 24.17
Standard Chartered Bank, UAE 1.16 6.34
Wells Fargo, USA 2,443.41 3,567.80
CCF Paris AG Centrale, France 5.89 -
Chase Manhatten, USA 7.50 -
Uni Credit Banca - Italy 11.47 -
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 2,277.99 2,680.88
Considered Doubtful 91.18 74.82
2,369.17 2,755.70
Less : Provision for Doubtful Advances 91.18 74.82
2,277.99 2,680.88
Inter Corporate Deposits with subsidiary 273.01 -
Share application money pending allotment 113.75 -
Other Deposits 699.14 683.03
Advance Income Tax (net of provision) 205.10 587.74
Balances with Excise and Customs 8.07 25.25
Unbilled Revenues 2,098.13 1,546.54
Total 5,675.19 5,523.44
WIPRO LIMITED
82
(Rs. in Million)
As of March 31,
2005 2004
SCHEDULE 11 LIABILITIES
Sundry Creditors 3,239.82 2,525.66
Unclaimed Dividends 4.50 1.49
Advances from customers 652.72 534.83
Unearned Revenues 639.64 363.33
Other Deposits 340.98 340.98
Other Liabilities 7,206.69 4,408.77
Total 12,084.35 8,175.06
SCHEDULE 12 PROVISIONS
Employee retirement benefits 773.28 630.85
Warranty Provision 452.44 357.36
Proposed dividend 3,517.85 931.04
Proposed one-time dividend - 5,818.98
Tax on proposed dividend 493.38 864.85
Total 5,236.95 8,603.08
Year ended March 31,
2005 2004
SCHEDULE 13 OTHER INCOME
Dividend on Mutual Fund Units 643.90 783.13
Interest on debt instruments and others 30.70 20.30
Rental income 22.63 45.03
Profit on sale of Mutual Fund Units 35.59 -
Profit on disposal of Fixed Assets 108.90 108.25
Exchange differences - Net 36.49 229.01
Miscellaneous Income 57.13 84.20
Total 935.34 1,269.92
Tax deducted at source Rs. 132.84 Million (2004 : Rs. 74.75 Million)
SCHEDULE 14 COST OF GOODS SOLD
Raw materials, Finished and Process Stocks * 11,476.82 8,208.67
Stores & Spares 308.79 159.30
Power and Fuel 465.38 359.06
Employee Compensation including onsite allowance 25,762.62 18,712.46
Contribution to provident and other funds 367.38 248.26
Gratuity and pension 392.79 271.89
Workmen and Staff welfare 306.88 215.02
Insurance 113.04 76.44
Repairs to factory buildings 21.81 12.92
Repairs to Plant & Machinery 996.51 431.24
Rent 248.61 197.54
Rates & Taxes 52.67 7.62
Packing & Freight Inward 69.15 35.09
Travelling 1,480.33 1,208.54
Communication 552.43 404.77
Depreciation 1,722.00 1,347.62
Sub contracting/technical fees 1,711.09 1,532.99
Miscellaneous 1,855.28 1,421.89
Less : Capitalised (refer Note 9) (371.18) (139.95)
Total 47,532.40 34,711.37
* For details refer Schedule 18
WIPRO LIMITED
83
(Rs. in Million)
Year ended March 31,
2005 2004
SCHEDULE 15 SELLING AND MARKETING EXPENSES
Employee compensation 628.41 480.53
Contribution to provident and other funds 19.54 16.38
Gratuity and pension 26.48 26.81
Workmen and Staff welfare 41.40 30.26
Insurance 4.43 5.33
Repairs to buildings 2.10 6.56
Rent 87.90 58.16
Rates and Taxes 15.79 21.46
Carriage and Freight 241.42 174.16
Commission on sales 83.01 89.94
Advertisement and sales promotion 747.09 570.05
Depreciation 45.09 50.90
Travelling 2,953.27 2,827.80
Communication 44.12 38.35
Miscellaneous Expenses 165.38 221.77
Total 5,105.43 4,618.46
SCHEDULE 16 GENERAL AND ADMINISTRATIVE EXPENSES
Employee compensation 947.96 743.49
Contribution to provident and other funds 36.77 26.18
Gratuity and pension 40.04 33.89
Workmen and Staff welfare 215.07 156.87
Insurance 15.74 14.13
Repairs to buildings 5.30 3.94
Rent 24.30 34.94
Rates and taxes 19.64 24.90
Auditors’ remuneration and expenses - -
Audit fees 4.22 4.22
For certification including tax audit 0.96 0.96
Reimbursement of expenses 0.59 0.28
Loss on disposal of Fixed Assets 2.22 6.77
Depreciation 92.57 117.45
Travelling 330.94 284.66
Communication 49.21 62.42
Provision / write off of bad debts 120.02 118.16
Miscellaneous Expenses 1,097.66 775.99
Total 3,003.21 2,409.25
SCHEDULE 17 INTEREST
On fixed loans - 8.77
Others 55.68 26.40
Total 55.68 35.17
SCHEDULE 18 RAW MATERIALS,
FINISHED AND PROCESSED STOCKS
Consumption of raw materials and bought out components :
Opening Stocks 458.35 331.57
Add : Purchases 6,135.71 5,011.45
Less : Closing Stocks 619.37 458.35
5,974.69 4,884.67
Purchase of finished products for sale 5,595.03 3,441.88
(Increase)/Decrease in finished and process stocks :
Opening Stock : In process 38.01 14.92
: Finished products 503.24 408.45
Less : Closing Stock : In process 27.44 38.01
: Finished products 606.71 503.24
(92.90) (117.88)
Total 11,476.82 8,208.67
WIPRO LIMITED
84
SCHEDULE 19 SIGNIFICANT ACCOUNTING POLICIES
Accounting convention
Accounts are maintained on an accrual basis under the historical cost convention.
Revenue recognition
_ Sales include applicable sales tax unless separately charged, and are net of discounts.
_ Sales are recognised on despatch, except in the following cases :
– Consignment sales are recognized on receipt of statement of account from the agent.
– Sales, which are subject to detailed acceptance tests, revenue is reckoned based on milestones for
billing, as provided in the
contracts.
– Revenue from software development services includes revenue from time and material and fixed
price contracts. Revenue
from time and material contracts are recognised as related services are performed. Revenue on fixed
price contracts is
recognised in accordance with percentage of completion method of accounting.
_ Export incentives are accounted on accrual basis and include estimated realisable values/benefits
from special import licenses and
Advance licenses.
_ Agency commission is accrued on shipment of consignment by principal.
_ Maintenance revenue is considered on acceptance of the contract and is accrued over the period of
the contract.
_ Other income is recognised on accrual basis.
Fixed Assets and Depreciation
Fixed assets are stated at historical cost less depreciation.
Interest on borrowed money allocated to and utilised for fixed assets, pertaining to the period up to the
date of capitalization and other
revenue expenditure incurred on new projects is capitalised. Assets acquired on hire purchase are
capitalised at the gross value and
interest thereon is charged to Profit and Loss account. Renewals and replacement are either capitalised
or charged to revenue as
appropriate, depending upon their nature and long term utility.
In respect of leased assets, lease rentals payable during the year is charged to Profit and Loss account.
Depreciation is provided on straight line method at rates specified in Schedule XIV to the Companies
Act, 1956, except on data
processing equipment and software, furniture and fixture, office equipment, electrical installations
(other than those at factories) and
vehicles for which commercial rates are applied. Technical know-how is amortised over six years.
Intangible Assets
Intangible assets are stated at cost less accumulated amortization. Intangible assets are amortised over
their estimated useful life ranging
between 5 years and 20 years.
Goodwill
The goodwill arising on acquisition is not being amortised. It is tested for impairment on a periodic
basis and written off if found
impaired.
Investments
Long term Investments are stated at cost and short term investments are valued at lower of cost and net
realizable value. Diminution
in value is provided for where the management is of the opinion that the diminution is of permanent
nature.
Inventories
Finished goods are valued at cost or net realizable value, whichever is lower. Other inventories are
valued at cost less provision for
obsolescence. Small value tools and consumables are charged to consumption on purchase.
Provision for retirement benefits
For employees covered under group gratuity scheme of LIC, gratuity charged to Profit and Loss
account is on the basis of premium
demanded by LIC. Provision for gratuity (for certain category of employees) and leave benefit for
employee’s is determined as per
actuarial valuation at the year-end. Defined contributions for provident fund and pension are charged to
the Profit and Loss account
based on contributions made in terms of applicable schemes, after netting off the amounts rendered
surplus on account of employees
separated from the Company. Certain category of employees are entitled to pension benefits which are
determined based on factors like
years of services and cumulative basic salary. The Company has provided for the liability based on an
actuarial valuation. The
compensation paid if any, on voluntary retirement to the employees is charged off as an expense in the
year of incurrence.
Deferred Tax
Tax expenses charged to Profit and Loss account is after considering deferred tax impact for the timing
difference between accounting
income and tax income. Deferred tax assets are recognised when there is a reasonable certainty that
they will be realised. Deferred tax
asset relating to unabsorbed business losses are recognised when there is a virtual certainty that there
will be sufficient taxable profits to
utilise them.
WIPRO LIMITED
85
Foreign currency transactions
The Company is exposed to currency fluctuations on foreign currency transactions. With a view to
minimise the volatility in financial
statements arising from fluctuations in the currency rates, the Company follows established risk
management policies, including the use
of foreign exchange forward contracts.
As a part of the Risk Management Policies, the forward contracts are designated as hedge of highly
probable forecasted transactions. The
accounting standard on “The effects of changes on foreign exchange rates”, which was amended with
effect from April 1, 2004 pro vides
guidance on accounting for forward contracts. Further to that, the Institute of Chartered Accountants of
India has clarified that this
accounting standard is not applicable to the forward contracts which are for hedging highly probable
forecasted transactions.
Foreign currency transactions are recorded at the spot rate at the beginning of the concerned month.
Period-end balances of foreign
currency assets and liabilities are restated at the closing rate/forward contract rate, as applicable. The
exchange difference arising from
restatement or settlement is recognised in the Profit and Loss account.
Gains/losses, including gains/losses on intermediary roll over/cancellation, of forward contracts
designated as hedge of highly probable
forecasted transactions are recognised in the profit and loss account in the period in which the
forecasted transaction is expected to
occur.
Other forward contracts, options etc. which are not designated as hedge of forecasted transaction, are
marked to market on the balance
sheet date and the resultant gain/loss is accounted in the profit and loss account for the period.
In respect of 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 & loss account are translated at the average exchange rate during the period. The
differences arising out of the
translation are transferred to translation reserve.
Research and Development
Revenue expenditure on research and development is charged to Profit and Loss account and capital
expenditure is shown as addition
to fixed assets.
NOTES TO ACCOUNTS
1. i) The Company has provided depreciation at the rates specified in Schedule XIV to the Companies
Act, 1956, except in
cases of the following assets, which are depreciated at commercial rates, which are higher than the
rates specified in
 Schedule XIV. Depreciation over the years is provided up to total cost of assets.
Class of Asset Depreciation rate applied As per Schedule XIV
%%
Data Processing Equipment & Software 50.00 16.21
Plant & Machinery of ISP business 20.00 16.21
Furniture and fixtures 19.00 6.33
Electrical Installations 19.00 4.75
Office equipment 19.00 4.75
Vehicles 24.00 9.50
ii) Depreciation at 100% have been provided on assets costing less than Rs. 5000/-.
2. Estimated amount of contracts remaining to be executed on Capital account and not provided for is
Rs. 1,118.68 Mn.
(2004 : Rs. 529.11 Mn).
3. Contingent liabilities in respect of :
i) Disputed demands for excise duty, customs duty, income tax, sales tax and other matters Rs.
5,647.80 Mn
(2004 : Rs. 3,350.81 Mn).
ii) Performance and financial guarantees given by the Banks on behalf of the Company is Rs. 2,238.12
Mn (2004 : Rs. 1,892.56 Mn).
4. In June 2004, a subsidiary of the company acquired trademark / brand “Chandrika’ for an aggregate
consideration of Rs. 238.00
Mn. The subsidiary is entitled to use the trademark / brand in manufacturing, selling and distributing
products in India and other
SAARC countries. Further, rights to use the brand in Nepal has been acquired at Rs. 30.00 Mn.
Pursuant to an agreement between the company and the subsidiary, the Company is licensed to use the
trademark / brand
“Chandrika”. The Company has also entered into a non-compete agreement with the sellers of
“Chandrika” brand, for which
it has paid certain amount as up-front fee. In addition, the Company will be paying an annual non-
compete fee computed as a
specified percentage of the revenues from products sold under “Chandrika” trade-name, subject to a minimum
annual payment.