About

Wipro

2 Annual Report 2018-19

Wipro Limited (NYSE: WIT, BSE: 507685,
NSE: WIPRO) is a leading global information
technology, consulting and business process
services company. We harness the power
of cognitive computing, hyper-automation,
robotics, cloud, analytics and emerging
technologies to help our clients adapt to
the digital world and make them successful.
A company recognized globally for its
comprehensive portfolio of services, strong
commitment to sustainability and good
corporate citizenship, we have over 170,000
dedicated employees serving clients across
six continents. Together, we discover ideas
and connect the dots to build a better and a
bold new future.

We began our business as a vegetable oil

manufacturer in 1945 at Amalner, a small
town in Western India and thereafter,
forayed into soaps and other consumer care
Spirit of Wipro
products. During the early 1980s, we entered
the Indian IT industry by manufacturing and
selling mini computers. In the 1990s, we Be passionate about clients’ success
leveraged our hardware R&D design and
software development expertise and began Be passionate about clients’ success. We succeed when we
offering software services to global clients. make our clients successful. We collaborate to sharpen our
In 2013, we demerged the non-IT Diversified insights and amplify this success. We execute with excellence.
Businesses. With a track record of nearly 30 Always.
years in IT Services, we are, today, focused
entirely on the global Information Technology
Treat each person with respect
business. Wipro is listed on National Stock
Exchange and Bombay Stock Exchange in We treat every human being with respect. We nurture an open
India and New York Stock Exchange in the US. environment where people are encouraged to learn, share
and grow. We embrace diversity of thought, of cultures, and of
For more information, please visit wipro.com people.

Values
Be global and responsible
The Spirit of Wipro is the core of Wipro. These
We will be global in our thinking and our actions. We are
are our Values. It is about who we are. It is
responsible citizens of the world. We are energized by the deep
our character. It is reflected consistently in
connectedness between people, ideas, communities and the
all our behavior. The Spirit is deeply rooted
environment.
in the unchanging essence of Wipro. It also
embraces what we must aspire to be. The
Unyielding integrity in everything we do
Spirit is a beacon. It is what gives us direction
and a clear sense of purpose. It energizes us Integrity is our core and is the basis of everything. It is about
and is the touchstone for all that we do. It is following the law, but it’s more. It is about delivering on our
the indivisible synthesis of the four values. commitments. It is about honesty and fairness in action. It
is about being ethical beyond any doubt, in the toughest of
circumstances.

Wipro Limited 3
Financial
Highlights
(Figures in ` million except otherwise stated)

Financial performance 2014-15 2015-16 2016-17 2017-18 2018-19

Revenue1 473,182 516,307 554,179 546,359 589,060

Profit before Depreciation, Amortisation, Interest
108,246 111,825 116,986 105,418 119,384
and Tax

Depreciation and Amortisation 12,823 14,965 23,107 21,124 19,474

Profit before Interest and Tax 95,423 96,860 93,879 84,294 99,910
Profit before Tax 111,683 114,933 110,356 102,474 115,415

Tax 24,624 25,366 25,213 22,390 25,242

Profit after Tax -

86,528 89,075 84,895 80,081 90,031
attributable to equity holders
Per share data
Earnings Per Share- Basic (`)2 13.22 13.60 13.11 12.64 14.99
Earnings Per Share- Diluted (`) 2
13.18 13.57 13.07 12.62 14.95
Financial position
Share Capital 4,937 4,941 4,861 9,048 12,068
Net Worth 409,628 467,384 522,695 485,346 570,753
Gross cash (A) 251,048 303,293 344,740 294,019 379,245
Total Debt (B) 78,913 125,221 142,412 138,259 99,467
Net Cash (A-B) 172,135 178,072 202,328 155,760 279,778
Property, Plant and Equipment (C) 54,206 64,952 69,794 64,443 70,601
Intangible Assets (D) 7,931 15,841 15,922 18,113 13,762
Property, Plant and Equipment and
62,137 80,793 85,716 82,556 84,363
Intangible Assets (C+D)

Goodwill 68,078 101,991 125,796 117,584 116,980

Net Current Assets 272,463 284,264 309,355 292,649 357,556

Capital Employed 488,538 592,605 665,107 623,605 670,220

Shareholding related

Number of Shareholders3 213,588 227,369 241,154 269,694 330,075

Market Price Per Share (`)4 235.8 211.6 193.4 210.9 254.8

1. Revenue is aggregate revenue for the purpose of segment reporting including the impact of exchange rate fluctuations
2. EPS adjusted for the years prior to the bonus issue. Bonus issue was in proportion of 1:3 and was approved by shareholders in February 2019
3. Number of shareholders (as at March 31st of respective years) represents holders of equity shares and does not include holders of ADRs
4. Market price of shares is based on closing price in NSE as on March 31st of respective years and has been adjusted for bonus issue in 2019

6 Annual Report 2018-19

Revenue IT Services IT Services Net Income to
($ Million) Operating Margin1 Revenue2

8,120
18.8%
17.9%
7,895
16.1% 15.3% 15.3%
14.7%
7,569

FY 2017 FY 2018 FY 2019 FY 2017 FY 2018 FY 2019 FY 2017 FY 2018 FY 2019

Operating Cash Flow to Free Cash Flow to Net Gross

EBITDA Income Utilization
97.4% 106.0%

79.3% 79.9% 86.1%

74.4%
79.3%
72.2%
71.5%

FY 2017 FY 2018 FY 2019 FY 2017 FY 2018 FY 2019 FY 2017 FY 2018 FY 2019

Attrition Market Capitalization Payout

Rate3 ($ Billion)4 Ratio5

17.6%
16.8% 72.8%
16.3% 22.2
19.5 60.7%
19.3

37.9%

FY 2017 FY 2018 FY 2019 FY 2017 FY 2018 FY 2019 FY 15 -17 FY 16 -18 FY 17 -19

1. IT services operating margin refers to segment results total as reflected in IFRS financials
2. Net Income has been considered after adjusting for profit attributable to non-controlling interest (Minority Interest)
3. Attrition rates refers to voluntary attrition computed on a trailing twelve months basis excluding DO&P
4. For convenience, the market capitalization in ` as per NSE have been translated into United States Dollar at the certified foreign exchange rate published
by Federal Reserve Board of Governors on the last day of the respective financial years
5. Payout Ratio has been computed by dividing the payout (comprising interim and final dividend declared for the respective financial year and buy back if
any, considered based on the date of Board’s approval) to shareholders by net income on a trailing three year basis. The buyback of ` 105 billion that the
Board approved in April 2019 will be considered as a part of the payout for FY 2020

Wipro Limited 7
Key Performance
Metrics
110
100
FY 2018
125
FY 2017 FY 2019

Human
Capital
Nationalities
in Workforce
Localization in
Total Employees On-shore Workforce
175,690
165,481
163,827
64.0% 30.9% 31.2%
USA UK Australia
Persons with Disabilities

545
Women Employees (%)
442

35.0% 35.2% 334

FY 2017 FY 2018 FY 2019
33.0%

FY 2017 FY 2018 FY 2019

FY 2017 FY 2018 FY 2019

Intellectual
Capital
Patents Filled
Cumulatively till Date

2200+ FY
FY 2017 39,000+
2019
FY 2018 90,000+
FY 2019 133,000+ 558
2000+ FY
2018

380
Number of 1662
250
People Trained
` million FY
in Digital 2017
FY 2017 3,338

FY 2018 3,041

FY 2019 3,942
FY 2017 FY 2018 FY 2019

R&D Expenses Patents Granted till Date

8 Annual Report 2018-19

 Social & Relationship
Capital Revenue from Existing
Customers Total Employees Engaged
1,248 with Wipro Cares
1,323 1,179 98.6% 98.4% (volunteering or monetary
98.0% contribution or both)
4 86 bps
51
FY 1 30,000+
s 2018 28,000+
p

bp
25,000+
0b

FY 19
20 Y

s
20
17
F

FY 2017 FY 2019
74

FY 2018

Increase in Customer Net

Promoter Score
basis points Active customers
FY 2017 FY 2018 FY 2019 FY 2017 FY 2018 FY 2019

Community Partners CSR Spend

` million
Wipro earthian Engagement
175+
1,863 1,866 with Students and Institutes
1,853
150+
8,539 1,381
FY 2017
8,649 1,296
70+ FY 2018
7,985 1,371
FY 2019

FY 2017 FY 2018 FY 2019 FY 2017 FY 2018 FY 2019

Natural
Capital
FY 2017
Water Recycled
38% (% of total water consumption)

FY 2018 FY 2019
GHG Emission Overall Environmental Cost
Reduction (YoY) Reduction due to Initiatives*
tons of W eq.W
` Million
41%
1,265 42%
44,500 1,086 1,153

24,000

11,000
Waste sent to Landfill
(excluding C&D) FY 2017 4.5%
FY 2016 FY 2017 FY 2018 FY 2018 3.3%
FY 2017 FY 2018 FY 2019 * Valuation of FY 2019 will be
completed by July 2019 FY 2019 3.0%

Wipro Limited 9
 Sustainability
Highlights

A Sustainable, Empowering Workplace

• 133,000+ employees trained in digital skills as of FY 2019
• 600,000+ hits on Wipro OnAir Podcasts, 106,000+ employees on the enterprise social platform Yammer and 47,000 monthly
active users on collaborative platforms like MS Teams
• Work from Home policy implemented, India paternity leave enhanced and employee rotations policy changed based on employee
feedback
• 75% overall engagement score in the Employee Perception Survey Pulse FY 2019 – an increase of 1.4% compared to FY 2018
• 100,000+ employees covered in 20 locations in India and 8 locations outside India under ISO 14000 and OHSAS certifications

Biodiversity, Waste and Water Energy & Emission

Ecological Sustainability

• 4% reduction in water consumption • Over 29% reduction in global people based emissions intensity to
intensity to 951 liters per employee 0.85 tons per person per annum
• 42% of water recycled in FY 2019 • 40% (98 million units) of our total India Energy Consumption comes
compared to 41% in FY 2018 from Renewable Energy (RE)
• 97% of waste (excluding C&D) is • Wipro EC campus is first in IT service sector to receive Greenco
diverted from landfill Silver Rating award by CII-GBC (Green Business Center)
• 3 biodiversity projects completed till • 44% increase in energy saving due to server virtualization from FY 2018
date-Butterfly park, Wetland zone and • 21% reduction in air travel footprint from FY 2018
thematic garden in Bengaluru and Pune
• Community Water Programs: Energy GHG Intensity for Office
Intensity Energy Consumption
Participative urban water programs in KwH per sq. meter per annum Kg CO2 eq per sq. meter per annum
Bengaluru and Pune
• Bengaluru Sustainability Forum: 3 174

multi-stakeholder retreats and 9 grant 142

proposal selected on urban water and 101

biodiversity 71.3

FY 2018 FY 2019 FY 2018 FY 2019

Education & Community Care

School Education
• Partnered with 116 organizations in areas of systemic reforms over 18 years
• Supporting 14 new organizations through seeding fellowships & 2 through grants in FY 2019
• Close to 150 participants attended the 18th Partner’s Forum on school education
• More than 85 education seeding fellows supported till date

Sustainability Education
• Participation in flagship Wipro earthian program from 1,371 schools and colleges across 51 districts in 29 states and 3 UT’s
• Faculty led research, Faculty development program on MOOC’s and doctoral fellowships on sustainability with IIM-B
• 3 academic workshops held with CEPT, ICT and IIMA with 55 participants from top business schools, planning schools and
chemical engineering institutes
• 7 sustainability quizzes conducted with 1,420 participants from 710 teams along with national finals
• 20 college sustainability internships facilitated at 5 partner organizations

10 Annual Report 2018-19

Management Discussion
and Analysis

Industry Overview
Organizations across the globe are undergoing an 2019) and now contributes $33 billion to the overall IT
unprecedented change and transformation in their industry in India. Technologies such as industrial automation,
businesses led by forces such as digital, increasing robotics, cloud, Internet of things (“IoT”), augmented reality
consumerization of IT, emergence of new platforms such as (“AR”)/virtual reality (“VR”) and blockchain continue to fuel
cloud services and increasing disruptions and competition growth. In 2018, there was a 45% increase in as-a-service
from new-age companies. Technology access and usage has deals, according to the NASSCOM Report. Cloud platforms
been largely democratized and mainstreamed. There has are driving growth in managed services for security and data
been a profound change in how technology is developed, platforms. Digital and automation has moved from point
delivered and consumed. deployments to enterprise-wide adoption.

Large multinational enterprises are thus reimagining multiple Global IT service providers offer a range of end–to-end
aspects of their business leveraging digital technologies and software development, digital services, IT business
are engaging global IT services companies who can deliver solutions, research and development services, technology
high quality service on a global scale and at competitive infrastructure services, business process services,
price points. The market is shifting from traditional services consulting and related support functions. According to the
to digital technologies, DevOps and as-a-service models. NASSCOM Report, IT export revenues from India grew by
We believe that the IT Services industry has significant 8.3% to an estimated $136 billion in fiscal year 2019.
growth potential and the next wave of growth will come from
digital technologies. According to the Strategic Review 2019 Given that transformation, modernization, innovation and
published by NASSCOM (the “NASSCOM Report”), “Digital” trust are fundamental imperatives for organizations, the
continues to drive growth (more than 30% of growth in FY opportunities that exist for the industry are significant.

18 Annual Report 2018-19

Business Overview Our Business Strategy
We are a global technology services firm, with employees Our strategy is about driving a “Digital first” approach through
across 50 countries and serving enterprise clients across 27 four foundational pillars i.e. Business Transformation,
industry verticals. We provide our clients with competitive Modernization, Connected Intelligence and Trust. As
advantages by applying various emerging technologies and part of these, we are prioritizing and disproportionately
ensuring cyber resilience and cyber assurance. We work investing to drive growth in key strategic fields such as
with our clients not only to enable their digital future, but digital, cloud, cybersecurity and industrial and engineering
also to drive hyper efficiencies across their technology services through our “Big Bet” program. For example, our
infrastructure, applications and core operations, enabling “Big Bet” in each of Digital and Cloud are at the heart of
them to achieve cost leadership in their businesses. our Business Transformation and Modernization pillars,
while our “Big Bet” in Industrial and Engineering services
We are recognized by our clients for our ability to bring in is central to our Connected Intelligence pillar and our “Big
“an integrated perspective”, i.e., our ability to bring together Bet” in cybersecurity is central to our Trust pillar. Talent, IPs/
broad and deep technology and domain expertise, our ability Platforms & Open Innovation are underlying strategies that
to draw learnings and apply insights from one company or support the four pillars.
sector to another and our ability to provide end-to-end
services. Our clients value our consistent excellence in Business Transformation
execution and our ability to proactively incorporate relevant
innovation. Business Transformation is about transforming the customer
experience at scale and generating new revenue models
Going forward, digital enterprises will increasingly require through a consulting-led approach combining deep domain
partners, such as Wipro, who are able to bring capabilities and technology expertise and strategic design capabilities,
that span across consultancy, design, engineering, systems
which we have scaled through our acquisitions, such as of
integration and operations to enable them to achieve digital
Designit, Cooper and Syfte.
transformation. This transformation can only be effective if
delivered in the context of the relevant industry or domain,
Our acquisition of Syfte, an Australian design agency
hence it is critical to us that we provide strong domain
leverages human-centered design thinking to solve
expertise along with “Digital.” We have invested significantly
compelling client challenges & strengthens Wipro’s design
in building domain expertise and we will continue to
and innovation capabilities. Syfte, which is a part of Digital,
strengthen our domain capabilities.
expands our reach in Australia and contributes to significant
The vision for our business is “to earn our clients’ trust and synergy across our integrated digital and design capabilities.
maximize value of their businesses by helping them in their
journey to ‘re-invent’ their business and operating models Modernization
with our ‘Digital’ first approach and best in class execution.”
Modernization is about taking an integrated “Cloud first”
Our IT Services business provides a range of IT and IT-enabled approach across applications, infrastructure and data to
services which include digital strategy advisory, customer- modernize the IT landscape, while leveraging HOLMESTM,
centric design, technology consulting, IT consulting, custom new ways of working, Application Programming Interface
application design, development, re-engineering and (“API”) and Microservices.
maintenance, systems integration, package implementation,
cloud infrastructure services, analytics services, business We are investing in Cloud Studios across geographies,
process services, research and development and hardware which provides services such as cloud assessment, cloud
and software design to leading enterprises worldwide. migration (Lift and Shift), cloud native, Agile and DevOps,
among others.
Our IT Products segment provides a range of third-party IT
products, which allows us to offer comprehensive IT system Wipro HOLMESTM helps enterprises hyper-automate
integration services. These products include computing, processes and offload specific cognitive tasks to the
platforms and storage, networking solutions, enterprise artificial intelligence (“AI”) platform to gain cost efficiencies,
information security and software products, including agility and enhanced user experience. Wipro HOLMESTM helps
databases and operating systems. We continue to focus businesses adopt a hybrid mode of operation (i.e., pairing
on being a system integrator of choice where we provide IT automation and human effort), which is achieved through a
products as a complement to our IT services offerings rather combination of virtual agents, predictive systems, cognitive
than sell standalone IT products. process automation, visual computing applications,
knowledge virtualization and AI reasoning.
Our India SRE segment consists of IT Services offerings to
organizations owned or controlled by Government of India We also offer automation advisory services to help clients in
and/or any Indian State Governments. their journey of AI/automation through designing automation

Wipro Limited 19
roadmaps and setting up Digital Centers of Excellence for Underlying Strategies that Support the
automation initiatives. In addition to the Wipro HOLMESTM
platform, we are building a collaboration ecosystem for Four Pillars
automation, working with partners such as Robotics Process
Automation providers (e.g. UiPath ), start-ups (e.g., Avaamo, Talent
Inc., Arago and GmbH) and established partners (e.g., IBM,
Amazon.com, Inc., Google LLC, Microsoft Corporation, SAP Talent strategy is about building a robust ‘re-skill & recruit’
SE, Oracle Corporation and ServiceNow, Inc.). engine and scaling a global, diverse, local and distributed
talent pool. We are scaling π-shaped talent (i.e., people
For our API and microservices, we have significantly scaled with “double-stemmed” skill sets), product managers,
our consulting talent pool and solutions, which includes our scrum masters and full stack engineers. We are driving
Digital Modernization platform. re-skill programs for our employees, such as our Digital
Academy. We are hiring and training new employees locally
Connected Intelligence through Wipro’s Ascent program and driving scale in our
various geographic segments through employee trainings
Connected Intelligence is about driving outcomes through in areas such as Digital, Analytics, Engineering Services and
HOLMESTM, our Data Discovery Platform and use-case based Cybersecurity.
AI solutions and building strong industrial & engineering
service capabilities and assets in areas such as Autonomous As of March 31, 2019, we trained over 133,000 professionals
systems, IoT,5G, etc. We have adopted an “AI First” strategy, in digital technologies. We are expanding our innovation labs,
which entails acquiring and assimilating data, driving or digital pods, to offer enhanced transformation services to
accurate decisions and delivering measurable business global customers.
outcomes., e.g. Faster Time-to-Market.
IPs & Platforms
We continue to invest in scaling end-to-end capabilities
across sensors, gateways, connectivity, platforms, analytics, IPs and Platforms is about driving differentiation and non-
machine learning and artificial intelligence to drive linear revenues. We are scaling IPs, platforms and solutions
transformation in a hyper-connected world. We are scaling to drive differentiation in our as-a-service offerings. We are
assets and capabilities in emerging areas such as IoT, 5G, integrating IPs to drive greater impact across domains and
and autonomous systems. technology. Examples of our domain and industry IPs are
Netoxygen in our Banking, Financial Services and Insurance
Trust business unit and Medicare Advantage in our Health
Business Unit, and examples of our technology-based IP
Trust is about addressing a changing security, privacy & include Cyber Defense Platform and Virtuadesk.
regulatory landscape driven by ubiquitous technology
through a consulting led approach to Cyber-security. Open Innovation
We have adopted a consulting-led approach in areas such Open Innovation is about tapping the innovation ecosystem
as enterprise risk management, data privacy and control to bring the best solutions to our customers through vehicles
assurance and we have leveraged cognitive automation, such as Wipro Ventures, through which we invest in start-
e.g., automated incident detection and response, to drive ups relevant to enterprises, Partner ecosystem, Academia
security. partnerships , our Horizon Program, which is our organic
intrapreneurship initiative, our Crowdsourcing Model
We are scaling assets such as our cyber defense assurance (Topcoder), Expert Networks and M&A.
platform (“CDAP”) and working with security ecosystem
partners and governing bodies, such as Cloud Security • Wipro Ventures: The strategic investment arm of Wipro,
Alliance and Wipro Ventures Portfolio (IntSights, CyCognito, Wipro Ventures is a $100 million fund that invests in early
Vectra). to mid-stage enterprise software startups. As of March
31, 2019, Wipro Ventures has active investments in and
partnered with 13 startups in the following areas – AI
(Avaamo, Inc., Vicarious FPC, Inc.), Business Commerce
(Tradeshift, Inc.), Cybersecurity (IntSights Cyber
Intelligence Ltd., Vectra Networks, Inc. CyCognito), Data
Management (Imanis Data, Inc.), Industrial IoT (Altizon
Systems Private Ltd.), Fraud & Risk Mitigation (Emailage
Corp.), Testing Automation (Headspin, Inc., Tricentis
GmbH) and Cloud Infrastructure (Cloudgenix, Moogsoft).

20 Annual Report 2018-19

 In addition to direct investments in emerging startups, • Crowdsourcing (Topcoder): A community and
Wipro Ventures has invested in four enterprise-focused crowdsourcing platform with of over 1.5 million
venture funds: TLV Partners, Work- Bench Ventures, developers, designers, data scientists, and testers.
Glilot Capital Partners and Boldstart Ventures. During Topcoder provides focused enterprise offerings around
year ended March 31, 2019, one of our portfolio AI/ML and Analytics, Digital Experience (DX), Quality as
companies, Demisto, was acquired. a Service (QaaS), Workforce Transformation, Talent as
a Service (TaaS), and Hybrid (Certified) Communities.
• Partner Ecosystem: We have a dedicated unit to drive We are also using the Topcoder Hybrid Crowd Platform
and deepen our partner ecosystem to drive creation to scale and engage ‘in-house’ talent pools in emerging
of new markets and solutions, expand in key verticals technologies such as Full Stack, DevOps, AI/ML, Cloud,
and geographies, drive innovation in our offerings and Analytics & other Digital skills with our internal TopGear
drive go-to-market outcomes. We have subdivided the hybrid community. It also acts as a structured learning
partner ecosystem into the following categories: path for accounts providing hands-on experience
»» Strategic Partners: A strategic partnership has across 200+ skills. We are creating a pool of Challenge
multiple technologies and industry use cases Architects, Topcoder Co-pilots & Reviewers to expand
aligned to Wipro’s business covering multiple the percentage of work delivered through crowdsourcing.
Wipro service lines. These partnerships are global
in nature, with higher business volume and larger • M&A: Acquisitions are key enablers for us and drive
business potential with a medium to long term our capability to build industry domain, focus on key
joint business roadmap. Wipro and the strategic strategic areas, strengthen our presence in emerging
partner co-develop focused industry solutions and technology areas, including Digital, and increase market
co-invest in joint go to market initiatives. Strategic footprint in newer markets. We focus on opportunities
partnerships usually have strong solutions portfolio where we can further develop our domain expertise,
which either complete a value chain by themselves specific skill sets and our global delivery model to
or play a prime technology position in a value chain. maximize service and product enhancements and
»» Growth Partners: These are partnerships have create higher margins. We also evaluate business units
focused alignment on a core technology practice to determine if divestures would maximize our focus on
and provide extended solutions based on a common key priorities.
technology baseline. These partnerships help
Wipro to strengthen industry positioning, usually
helping Wipro to achieve leadership position in Operating Segment Overview
that technology. Growth partners have higher
potential for multi practice engagements through Our business comprises of the IT Services, IT Products and
either branching to other services lines of Wipro or ISRE segments. The ISRE segment consists of IT services
leveraging an ecosystem of partnerships. offerings to ISRE Customers. Effective October 1, 2018,
»» Niche Partners: Niche partners are highly focused we carved out ISRE as a separate segment from our global
relationship on addressing a specific business need IT Services business. We made this decision because
through a unique positioning. Niche partnerships we changed our strategy for providing services to ISRE
help Wipro to differentiate ourselves in the market Customers. Historically, projects in our ISRE business have
through one or more of multiple advantages like been primarily SI projects that have complex deliverables
cost, unique technology positioning, future proofing and, compared to our IT Services segment, longer working
and addressing new growth areas. capital cycles and different downstream processes,
including billing and collections. Most ISRE deals come in
• Academia Partnerships: Collaboration with academic the form of a tender process, with little room to negotiate
institutions and associations in the United States, the terms and conditions. We have pivoted our ISRE strategy
Europe, Israel and India in the fields of computer and to focus more on consulting and digital engagements and
electrical engineering to promote innovative technology to be selective in bidding for SI projects with long working
research and capability. capital cycle.

• Horizon Program: The goal of the Horizon Program is Additionally, we provide our IT Services segment revenue
to drive organic incubation in emerging areas covering and results by industry verticals. Our industry verticals
products, platforms, solutions and capabilities. In order are subject to change and may vary depending on industry
to achieve this objective, we are investing in key areas trends.
such as AI, AR/VR, IoT, cloud computing, software-
defined everything, autonomous vehicle, cybersecurity,
digital experience, digital marketing and commerce and
Industry 4.0. During the year ended March 31, 2019 we
funded 16 themes/areas as part of this program.

Wipro Limited 21
Financial Capital
(Figures in ` million except otherwise stated)

Consolidated results FY 2018 FY 2019 YoY Change

Revenue 1
546,359 589,060 7.8%
Cost of revenue (385,575) (413,033) 7.1%
Gross profit 160,784 176,027 9.5%
Selling and marketing expenses (42,349) (44,510) 5.1%
General and administrative expenses (34,141) (35,951) 5.3%
Other Operating Income                 -    4,344 100.0%
Operating Income 84,294 99,910 18.5%
Finance Expenses (5,830) (7,375) 26.5%
Finance and Other Income 23,999 22,923 (4.5%)
Income Taxes 22,390 25,242 12.7%
Profit attributable to equity holders 80,081 90,031 12.4%
As a Percentage of Revenue
Gross Margin2 29.4% 29.7% 0.2%
Selling and marketing expenses 7.8% 7.6% (0.2%)
General and administrative expenses 6.2% 6.1% (0.1%)
Operating Margin 2
15.4% 16.8% 1.4%
Earnings per share-Basic (`) 3
12.64 14.99 18.6%

Earnings per share-Diluted (`)3 12.62 14.95 18.5%

1. For segment reporting, we have included the impact of exchange rate fluctuations in revenue. Excluding the impact of exchange rate fluctuations, revenue,
as reported in our statements of income, is ` 544,871 million and ` 585,845 million for the years ended March 31, 2018 and 2019 respectively. Further,
finance income on deferred consideration earned under multi-year payment terms in certain total outsourcing contracts is included in the revenue of the
respective segment and is eliminated under reconciling items.
2. Gross margin and operating margin as a percentage of revenue for year ended March 31, 2019 have been calculated by including Other Operating Income
with Revenue.
3. Earnings per share for the year ended March 31, 2018, has been proportionately adjusted for the bonus issue in the ratio of 1:3 as approved by the
shareholders on February 22, 2019.

Revenues: Our revenue increased by 7.8%. Profitability: In absolute terms, cost of revenues increased
The IT Services segment revenue increased by 9.8%. This by 7.1% primarily because of increase in employee
growth was led by two of our largest industry verticals, BFSI, compensation due to the impact of salary increases, increase
CBU and was also a result of depreciation of the Indian Rupee in headcount during the year, increase in subcontracting/
against foreign currencies, including the U.S. Dollar, Euro, technical fees and depreciation of the Indian Rupee against
United Kingdom Sterling Pound and Canadian Dollar. The foreign currencies, including the U.S. Dollar, Euro, United
growth in the BFSI and CBU industry verticals was a result of Kingdom Sterling Pound and Canadian Dollar. This was
increasing our differentiated offerings across our geographic partially offset by a reduction in the cost of hardware and
and digital capabilities. Growth was partially offset by a software and increases in depreciation, amortization and
decline in revenues from the Health BU, due to uncertainties impairment charges, primarily as a result of the sale of our
around regulatory changes relating to the Affordable Care datacenter business, during the fiscal year ended March 31,
Act. Revenue of IT products segment declined by 31.6%. The 2019. As a result of the foregoing factors, our gross profit as
decrease in IT Products segment revenue was primarily due a percentage of our total revenue increased by 0.2%.
to our focus on being a system integrator of choice where
we provide IT products as a complement to our IT services Selling and Marketing expenses: Our selling and marketing
offerings rather than sell standalone IT products. Revenue expenses as a percentage of total revenue decreased from
of the ISRE segment declined by 20.1%, which was primarily 7.8% for the year ended March 31, 2018 to 7.6% for the
due to completion of large engagements and cost overruns year ended March 31, 2019. In absolute terms, selling and
in existing engagements. marketing expenses increased by 5.1% primarily because

30 Annual Report 2018-19

of salary increases and depreciation of the Indian Rupee Finance expenses: Our finance expenses increased from
against foreign currencies including U.S. Dollar, Euro, ` 5,830 million for the year ended March 31, 2018 to ` 7,375
United Kingdom Sterling Pound and Canadian Dollar. These million for the year ended March 31, 2019. This increase is
increases have been offset by the decrease in travel and primarily due to an increase of ` 2,165 million in interest
marketing and brand building charges in the year ended expense, which was partially offset by a decrease of ` 620
March 31, 2019 as compared to the year ended March 31, million in exchange loss on foreign currency borrowings and
2018. related derivative instruments.

General and Administrative expenses: Our general and Finance and Other income: Our finance and other income
administrative expenses as a percentage of revenue decreased decreased from ` 23,999 million for the year ended March
from 6.2% for the year ended March 31, 2018 to 6.1% for the 31, 2018 to ` 22,923 million for the year ended March 31,
year ended March 31, 2019. In absolute terms, general and 2019. The decrease is due to a reduction in net gains from
administrative expenses increased by 5.3%, primarily due to investments by ` 3,283 million during the year ended March
charges paid against a one-time settlement of a legal claim 31, 2019 as compared to the year ended March 31, 2018,
against the company included under “Others.” This was offset by resulting from a decrease in the average investments held
a decrease in the lifetime expected credit loss, deferred contract during the year.
cost and travel.
Income Taxes: Our income taxes increased by ` 2,852 million
Other Operating income: During the year ended March 31, from ` 22,390 million for the year ended March 31, 2018 to
2019, we concluded the sale of our hosted datacenter services ` 25,242 million for the year ended March 31, 2019. Please
business, Workday and Cornerstone OnDemand, and reduced refer to Note 16 of the Notes to Consolidated Financial
our holding in WAISL (formerly known as Wipro Airport IT Services Statements for further information. Our effective tax rate
Limited). Net gain from the sale of our hosted datacenter services has narrowly increased from 21.8% for the year ended March
business, Workday and Cornerstone OnDemand, and reduction 31, 2018 to 21.9% for the year ended March 31, 2019.
in our holdings in WAISL (formerly known as Wipro Airport IT
Services Limited), in the total amount of ` 4,344 million, has been Profit: Profit attributable to non-controlling interest has
recorded as “Other operating income.” increased from ` 3 million for the year ended March 31, 2018
to ` 142 million for the year ended March 31, 2019.
As a result of the foregoing factors, our operating income
increased by 18.5%, from ` 84,294 million for the year ended As a result of the foregoing factors, our profit attributable to
March 31, 2018 to ` 99,910 million for the year ended March 31, equity holders increased by ` 9,950 million or 12.4%, from `
2019. As a result of the above, our results from operating activities 80,081 million for the year ended March 31, 2018 to ` 90,031
as a percentage of revenue (operating margin) increased by 1.4% million for the year ended March 31, 2019.
from 15.4% to 16.8%.
Performance Highlights – IT Services
(Figures in ` million except otherwise stated)
IT Services FY 2018 FY 2019 YoY Change
Revenue 1
517,716 568,253 9.8%
Gross Profit 157,999 178,056 12.7%
Selling and Marketing expenses (41,874) (44,207) 5.6%
General and administrative expenses (32,966) (35,690) 8.3%
Other Operating Income - 4,344 100.0%
Operating Income2 83,159 102,503 23.3%
As a Percentage of Revenue
Gross Margin3 30.5% 31.1% 0.6%
Selling and marketing expenses 8.1% 7.8% (0.3)%
General and administrative expenses 6.4% 6.3% (0.1)%
Operating Margin3 16.1% 17.9% 1.8%
1. For the purpose of segment reporting, we have included the impact of exchange rate fluctuations amounting to ` 1,498 million and ` 3,208 million for the
years ended March 31, 2018 and 2019 respectively, in revenue. Further, finance income on deferred consideration earned under multi-year payment terms
in certain total outsourcing contracts is included in the revenue of the respective segment and is eliminated under reconciling items.
2. Includes Other Operating Income, which is being included to present the effect from the sale of hosted data center business, Workday and Cornerstone
OnDemand, in the year ended March 31, 2019.
3. Gross margin and operating margin as a percentage of revenue have been calculated by including Other Operating Income with Segment Revenue.

Wipro Limited 31
Human Capital

Business
Competitive Markets, Results
Crowd Sourcing, Financial Capital
People

3
Disruptive Social & Relationship Capital
k Technology Results
t loo Natural Capital
Ou
Inclusion Intellectual Capital
Engagement
s

Productivity &
es
Busin

Retention
Automation,
Inorganic Growth,
People
Demand for Skilled

1
Labour Strategy e
nc

li a
Building Capability

p
Reimagined Careers

Co m
People Process

2
Cultural Transformation
Digitalization and Talent Hiring & Onboarding

& Le g a l
Analytics Employee Wellbeing
Learning & Development
Seamless Employee Performance & Talent
Experience, Management

nc e
Optimal Resources p ro Employee Engagement
Utilization, S p irit o f W i & Communication

na
Empowerment,

er
Glocalization,

ov
Collaboration & G
Hum
Co-creation, Diversity a n Rig hts

Human Capital Value Chain – Working or indirectly contribute to the intellectual, social, natural
and financial capital of Wipro. As part of our governance
Ethically and Upholding Human Rights process, the strategies, processes and results are reviewed
periodically by the leadership and course corrections are
Our human capital interventions are driven by the dynamic made when and where necessary. Throughout this value
business landscape we operate in. Today, innovations chain, our strategies, processes and policies reflect an
like artificial intelligence, automation and analytics are unflinching commitment to the Spirit of Wipro values, as well
disrupting traditional business models, and opening up as globally-recognized principles of business responsibility,
newer opportunities and revenue streams. Continuous human rights and corporate governance.
learning is key to staying relevant in any industry and more
so in the IT and ITeS sector. Organizations are moving away
from being process-centric to becoming experience-centric People Strategy
in order to attract, nurture and retain the best global talent.
Our human capital value chain consists of people strategies Our people strategies are geared to create learning
which are based on the current and future business opportunities, build careers, and foster an empowering and
requirements. Our policies, processes and systems flow inclusive culture where our employees find meaning in what
from these strategies which encompass our employee they do while they create value for Wipro.
lifecycle. The outcomes of these people interventions are
reflected through our people result indicators, which directly

38 Annual Report 2018-19

Intellectual Capital Wipro has also been investing in building IP capabilities is
towards Autonomous Vehicle with intent to position Wipro
as a Software defined System Integrator for implementing
Intellectual Capital is core to Wipro’s Strategy for creating
various levels of autonomy in autonomous vehicle and a niche
value for the customers and for driving sustained growth,
provider of best in class IP that solves unique challenges for
differentiation, non-linearity and profitability for Wipro -
autonomous driving.
by building scalable domain and technology IPs for high
opportunity areas leveraging partners, Academia and the
Cargo Digital Transformation is another example of Domain
start-ups ecosystem and delivered in aaS construct.
specific area of investment for Wipro with focused IP around
Cargo Reservation Operations Accounting and Management
Wipro has launched an idea hunting program called “The
Information System (CROAMIS).
Great Blue Heron” (The bird – Great Blue Heron is a great
fisher and fishing is used as a metaphor for idea hunting)
Wipro has been investing in building IP capabilities across
for capturing High potential Opportunities and problem
the entire spectrum of AI and Automation spanning, RPA to
patterns across Customers, Domains and Technologies. This
Cognitive and Deep Learning. Wipro drives a persona-first AI
program has been supplying a validated pipe of potential
approach through Wipro HOLMESTM wherein each persona
ideas for developing commercially viable IPs.
(COO, CFO, CPO etc.) has a wide portfolio of Automation/AI
use cases.
The commercially viable and market validated ideas are
funded through the Horizon program (popularly called H2H3).
Co-Innovation and Open Innovation: We actively co-
This platform is designed to identify & incubate disruptive
innovate with alliances and customers on emerging themes,
ideas, helping drive significant growth & differentiation for
enabling new customer experiences. Our Open Innovation
Wipro from a 2-3 year horizon standpoint. During FY 2019 we
programs leverage the innovation ecosystem by working
incubated 16 themes (7 newly approved) around Autonomous
closely with our partner/startups ecosystem, academia and
vehicle, Digital Twins, Digital, Open Banking, Analytics, Cloud
expert networks to jointly provide latest innovations to our
security, Additive manufacturing, SDx, industry solutions for
customers. In FY 2019 we have identified key innovative
Insurance & Banking.
startups that usefully differentiate our solutions and have
been successful in building traction for joint engagements.
We are also focused on continued investments for enhancing
We continue to be part of various industry and startup
some of our existing and proven products and platforms like
forums including the NASSCOM Industry Partner Program,
Promax, Netoxygen, Medicare, HOLMESTM, Topcoder, Base))),
which connect promising startups with us. We also work
Virtuadesk etc.
with and maintain our relationships with accelerators and
other investors and influencers in the startup ecosystem.
IP Assets: Wipro has a rich portfolio of 60+ commercial- We continue to work with a variety of open innovation
grade licensable Products, Platforms and Frameworks and
intermediaries to leverage expert networks across the
have been actively investing in strengthening, enhancing
world to complement our specialists on niche projects such
and refreshing the portfolio. Here are some examples:
as rapid development of mobile applications, AR based
immersive experience on applications, revolutionizing
Wipro IMAGINE has near-human ability of having intuitive
employee based retention through Intelligent chatbot,
multi-modal interactions, thereby providing personalized
streamline IT operations with AI, automating drafting and
experiences accurately and efficiently across different
executing of legal contracts and much more.
senses: voice, vision, haptics, smell and taste. It has the
potential to transform customer experience through nascent
Innovation Centres: Our innovation incubation centres,
channels of interaction such as augmented reality, virtual
the Technovation Center at Bengaluru and the Silicon Valley
reality and mixed reality experiences provided on head-
Innovation Centre in Mountain View California, continues
mounted devices. There have been customer engagements
to drive technology-led innovation to visualize the “art
on Wipro IMAGINE, such as Digital Advisor Solution for
of the possible” in emerging business environments for
Field & Service personas, Immersive Visualization solution
our customers globally. These Centers brings together
for Product exploration and Facility / Plant Walk-throughs,
an innovation ecosystem, a set of best practices, IP and
Digital Trainer Solution for Technician.
research and development resources to help our clients
develop successful initiatives
Another example is Wipro AutoInsights - A connected car
platform using telematics devices to continuously read data
Wipro also has 19 Digital Pods across the globe. A Digital
from connected cars and uses sophisticated analytics to
Pod is a workspace to foster collaboration within a
offer a wide range of benefits to car owners, OEMs, insurers
multidisciplinary agile team. Each team of 8-10 persons is
and the ecosystem players. The transformational usecases
known as a “Digital Cell”. These cells work with the necessary
are Loss Prevention, Safety & Wellbeing, Incentives and
autonomy to facilitate speed, continually validating progress
offers, Ecosystem Value.
with user research and technical performance data. The

Wipro Limited 45
cells also follow Wipro’s No-Shore ways when working with Our joint research collaboration with Tel Aviv University
similar cells distributed across the globe. Leveraging the where Wipro and TAU are working on core and applied
best in class processes, teaming norms and technology research in image and text analytics using deep learning
enablers like the Digital Rig etc, the cells work as a single and sparse representation models and techniques, transfer
networked entity delivering business value faster to the domain and incremental learning problems has resulted in
consumers. some key advances, and our research collaborations with the
Indian Institute of Science on technologies for autonomous
Research Areas and Solutions in Advanced Tech. vehicles is also on track.
Areas: Wipro’s Research and Development initiatives
continue to focus on strengthening and extending our In addition, we have entered into research collaborations
capabilities across multiple new and emerging technology with IISc on technologies for autonomous vehicles. Further
areas, intersection of these technologies and potential we continue to actively scout for academia research
business use cases applying these technologies. We are programs from institutions across the world, where we can
investing extensively in developing solutions and services in establish mutually beneficial research collaborations.
a host of advanced technology areas (e.g. ADAS/autonomous Wipro has also worked with IIT Kharagpur to discover an
vehicles, commercial wearables, machine vision, human alternate way to secure the IoT devices which is lightweight
machine interfaces, smart assistants, natural language and doesn’t require computational & battery power. This
processing and understanding, Blockchain tech, quantum is achieved by building Physically Unclonable Function
computing, smart machines, among others). We continue to (PUF) based authentication and key exchange protocol for
invest in working on new ways of software development and IoT devices. The drawbacks associated with the traditional
deployment for edge-based IoT and always-on architectures. authentication protocols for IoT devices is minimized by
eliminating password dependency and binding access
We are actively building solutions in collaborative robotics, requests to originating device.
drones for industrial and warehouse applications. Our
objective is to build AI based software platforms that Crowdsourcing: We have continued our investments in
consists of cognition and decision systems so that we could TopGear, the social learning and crowdsourcing platform
deploy the solutions at scale with the customers. We are focusing on workforce transformation in ‘Digital’ and “in-
currently building software platforms for automations of demand” skills.
machine tending, intelligent material handling & transport.
This uses the Computer Vision Platform that which provides Patent Filings: Our R&D work has contributed to some
actionable insights to improve compliance, quality and significant patent applications during the FY in key
productivity using image and video analytics. We have built technology domains. As has been reported earlier we have
partnerships with Robot & accessory vendors to become been investing in building a focused patent portfolio that
single point solution provider for our customers. Some of the protects critical Wipro IP. As of FY 2019, we have a total of
use cases we have built that are showcased in our innovation 2,236 patents filed in various Patent Jurisdictions across the
centres are shopper robot, vision assisted machine tending world, of which 558 have been granted. Recognition of our
operation, inventory & inspection, segregation of hazardous work in IP creation has come in the form of the prestigious
materials, game playing robot. Enterprise Trophy presented to us by the World Intellectual
Property Organization, as well as the National IP Award from
We are building a solution for warehouse inspection using the Government of India.
drones. Drones fly periodically and help in the accurate
identification of materials across the warehouse at any point
in time. Highlights for the year

We are also collaborating with agricultural university, start- • In the year ended March 31, 2019, Wipro filed 305 patents
ups and research institutions to develop early detection of and currently has approximately 558 registered patents
pest infestation in crops with the use of these APIs. We have and 1,678 patent applications pending registrations in
reached a reasonable accuracy in detection and are working various jurisdictions across the world.
with one of the processing industries to deploy the same.
• Wipro won the “Asia IP Elite” award from the Intellectual
Academia: This year we signed an agreement with Asset Management publication for the sixth consecutive
Swinburne University, Melbourne, Australia to create year for best IP Practices
a Wipro Chair in the University, to lead critical joint AI
technology research. We continue to actively scout for
academia research programs from institutions across the
world, where we can establish mutually beneficial research
collaborations.

46 Annual Report 2018-19

Social & Relationship Capital Standard Board (SASB) standard for software and IT services
also lists these as being material to the sector.
Organizations earn and maintain their societal license to
IT Security: Wipro’s IT infrastructure is certified under
operate by adopting a boundary-less perspective and co-
the ISO 27001 standard which provides assurance in
creates social value through positive outcomes along with
the areas of information security, physical security and
its customers, business partners, vendors, employees,
business continuity. We benchmark our processes to meet
investors, communities and civil society. To this we also add
the EU’s General Data Protection Regulation (GDPR) and
another key stakeholder– future generations, helping bring
SOX IT compliance requirements. We closely monitor IT
a perspective from the unrepresented future, but that is
infrastructure availability incidents based on severity,
core to creating a sustainable society. We talk about each of
outage duration and users impacted. Most of the incidents
these stakeholders in brief below.
are related to telecommunications and network links.
We have maintained SLA with vendors on IT and telecom
Customers infrastructure availability close to 99.99% in the reporting
year.
Wipro believes in creating value for the customer over and
above our contractual obligation. Our approach is based on Data Privacy: Being a B2B business, Wipro does not collect,
our vision of delivering value to our customer businesses store or monetize information pertaining to our customer’s
based on a solid relationship of trust, collaboration and attributes or actions, including but not limited to, records of
competence. We ensure this by providing solutions that communications, content of communications, demographic
integrate deep industry insights, leading technologies and data, behavioral data, location data, or any other personally
best in class delivery processes. identifiable information. Therefore, our company does not
receive requests for customer information from government
Artificial intelligence is emerging as a defining technology, or law enforcement agencies. Wipro does not store any
empowering organizations to make rapid and informed customer proprietary data in its systems and networks. In
decisions. However, for AI to deliver on its promise, rare circumstances where, as part of project requirement,
predictability, transparency and trust are critical. Our it is needed to view customer data, it is accessed remotely
solution capabilities enable responsible AI through our with the data being stored and hosted on the customer’s
platform (Wipro HOLMESTM) and the ETHICA (Explainability, systems. This helps in meeting data privacy compliance
Transparency, Human-first, Interpretability, Common sense, requirements from a contractual & operational perspective
and Auditability) framework. since it is Wipro’s customers that are in control of their own
data, even while outsourcing project work to Wipro. Wipro
Engagement is critical to meet and understand the signs Master Services Agreements with its customers that
expectations of customers. The key to customer retention have clauses covering confidentiality of the customer’s
is building deep relationships. IT industry, a major driver information. Wherever applicable, Wipro also executes
of efficiency and productivity improvements for most Business Associate Agreements with its customers who
businesses, is undergoing tremendous change in the face are governed by sectoral privacy regulations such as HIPAA
of disruptive technologies. The Business Strategy section (Health Insurance Portability and Accountability Act) of
outlines the drivers and how it informs our business model, 1996. As a matter of due process, a customer is notified in
offerings and customer engagement approach. the event of any breach of data privacy as per notification
procedure agreed in the contract.
The Voice of the Customer is heard at various levels i.e.,
at project level, program level, account level and through We have a Data Protection and Privacy policy based on
direct feedback, informal meetings, governance meetings globally accepted data protection principles applicable to
and senior management interaction with the client. The the entire organization. The privacy policies and procedures
processes include Program CSAT, Quarterly Pulse Surveys are reviewed internally and audited on compliance. There is
and the Annual CSAT conducted through third party surveys. continuous monitoring of any privacy incident or deviations
These are conducted formally and at appropriate intervals to to the policy. Appropriate disciplinary actions are taken in
capture customer feedback on Wipro. During the reporting the event of any breach.
year, there has been a 511 basis point increase in customer
Net Promoter Score from previous year. In April 2019, we became aware that our system was subject
to a cyber attack by a coordinated and advanced phishing
From a sustainability perspective, the most material issues campaign, which was reportedly directed against several
for our customers include Data privacy, IT Security and major companies, including Wipro. Upon learning of this
incident, we collaborated with forensic firms to investigate
compliance on sustainability related aspects. The World
and have worked closely with our anti-virus provider and our
Economic Forum Global Risks Report 2019 lists large-scale
information security team to counter the threat found in our
IT security issues and data fraud/thefts among the top 10 in
system and implemented a series of additional precautionary
terms of likelihood and impact. The Sustainability Accounting

Wipro Limited 47
and containment measures across our systems. Our sustainability has increasingly become central. Our
investigation into this incident remains ongoing and will be engagement approach is multi-pronged with the focus on
concluded shortly. improving the capabilities of suppliers in managing their
sustainability performance. Manpower service providers
Sustainability: Apart from technology driven value creation, in civil, operations and support services is a category
our global customers also expect transparency and identified as being significant in terms of social impacts.
compliance on different sustainability aspects within our Similarly, suppliers who provide utility products and services
operations and in our extended value chain – Human Rights, (electricity, water, waste management) and ICT equipment
Labour Practices and Diversity being key dimensions among have large environmental footprints and are therefore
them. Many customers require acceptance and alignment material to our strategy to reduce our environmental impact.
with their supplier code of conduct and/or global frameworks.
We have +150 of our customers who are part of independent A significant feature of our engagement is how we align
raters like Ecovadis, Verego and industry led consortiums our community or CSR (Corporate Social Responsibility)
like the JAC (Joint Audit Consortium), Pharmaceutical Supply programs with supplier engagement wherever it is possible.
Chain Initiative (PSCI) and Quest Forum (Focusing on Quality This can address some of the fundamental issues at hand–
and Sustainability in ICT community). We also respond to our bridge program in education for children of migrant
CDP supply chain with information on our GHG emissions laborers for our new infrastructure projects, urban water
attributable to the work we do for specific customers and programs in cities where we operate and access to social
as a corollary, on collaboration opportunities with those benefits for city municipal solid waste workers are some
customers on GHG mitigation. examples.

Suppliers Collaborate
Inform
Educate our suppliers
Communicate intent
on environmental,
Managing and mitigating the environmental and social and requirements to
social and governance
our suppliers
impacts of one’s supply chain are interlinked to effective best practices to be
economic outcomes over the long term – they can help incorporated in their
businesses avoid disruptions, meet evolving customer business
requirements, foster innovation and protect the company’s
reputation and brand value. It can also help further the
business imperatives of efficiency, cost effectiveness and
resilience in the supply chain. The supplier ecosystem of ENGAGE
Wipro can be broadly categorized into two heads - contract
employees involved in core delivery of IT Services and
Solutions (refer the Human Capital section); and ‘product Understand
or services supply chain’ or ‘secondary supply chain’ which Context and current Assess
comprises suppliers who provide materials, equipment compliance of our Audits and
and end-products, business support services and facility suppliers and developing assessments of
management services for our operations. policies and processes suppliers
audits and assessments
of suppliers
Our Code of Business Conduct (COBC) and the Spirit of Wipro
values provide the ethical guidelines and expectations for
conducting business and for directing Wipro’s relationship
with its suppliers. The code is applicable to all suppliers, Supplier Diversity: Wipro is an Equal Opportunity employer
agents, service providers, channel partners, dealers and and strongly advocates the same through its supply chain by
distributors. In addition to the COBC, the Supplier Code of encouraging supplier diversity. Qualified enterprises owned
Conduct (SCOC) of Wipro further strengthens and augments by persons with disability, women or member of minority
the COBC with respect to environmental and social aspects communities are proactively identified and engaged with.
(including key aspects of human rights) of business We are restructuring our vendor empanelment process to
practices and sets clear expectations from our supply help strengthen our supplier diversity process.
chain. All decisions related to procurement are governed
by our procurement policy which addresses social and Summary of supplier sustainability engagements:
environmental aspects like green procurement, supplier
diversity, equal opportunity in sourcing and accessibility of a. The second phase of Vendor Compliance Management
goods and services for people with disabilities. Audit covering FY 2017 and FY 2018 concluded in June
2018. Employee Benefits provided and Women’s Safety
Our Supply Chain engagement has been a journey where at workplace were identified as key issues for workers in

48 Annual Report 2018-19

 supply chain. A total of 330 vendors were covered within During the reporting year, we optimized MPS
its scope. through asset reuse and printer removal, leading to
cost saving of ` 1.1 million. We have also reduced
b. Based on Trucost’s natural capital valuation, high unwanted printouts by a provision to scan and send
carbon/water/waste footprint suppliers are identified in documents to respective user mailboxes and are
supply chain. currently planning to implement ‘authentication
service’-access before print to further bring down
c. Identifying High Risks Vendors: It is compulsory for all our print and paper volumes.
vendors to submit a signed copy of Wipro Supplier Code
of Conduct (SCOC). High Risk Vendors (HRV) identified
based on geography, nature of service and other criteria Investors
go through additional checks and balances during
processing for key words like government payments, Our endeavor is to, not merely, report true and fair financial
miscellaneous expenses, bribe, commission, facilitation results in a timely manner but also communicate the
fee, gift, reward, out of pocket expense, etc. All HRV business outlook, risks and opportunities transparently to
vendors are required to submit an anti-bribery anti- the investor community. Increasingly, discerning investors
corruption questionnaire. We also have requirements of are interested in the longer term strategy of the organization
stricter negotiating threshold, clear break up of costs and issues which are material to the industry. We deploy
and multiple quote regardless of the value. multiple channels of communications to keep investors
informed about various development and events.
d. Supplier Diversity Program for facilities management
services at our campuses – A sensitization program was Wipro’s senior leaders along with our dedicated Investor
conducted and expectations have been conveyed formally Relations team participate in various forums like investor
through our contracting process. The gender diversity conferences and investor road shows, in addition to
ratio for supplier staff deployed at our facilities is 25.6%. hosting investors and equity analysts who visit our campus.
Our quarterly results, regulatory filings, transcripts of our
e. Green initiatives in ICT Hardware: earnings call, media presentations and schedule of investor
interactions are available at https://www.wipro.com/en-IN/
»» Green Procurement: Wipro adopted the EPEAT investors/
standard from Green Electronic Council in
2016 for its IT hardware procurement – across We participate in leading investor led disclosures like Dow
categories such as laptops, desktops, printers, Jones Sustainability Index, Vigeo, FTSE Russell ESG, MSCI
mobiles and servers. In 2018, we purchased more ESG, Sustainalytics and Carbon Disclosure Project. Wipro was
than 6,344 EPEAT Gold and over 140 EPEAT Silver selected as a member of the global Dow Jones Sustainability
and Bronze category products across desktops, Index (DJSI) 2018 for the ninth year in succession. Wipro
laptops, displays, imaging equipment and mobiles. is included in both the DJSI World and Emerging Markets
In tangible terms, our procurement of EPEAT Indices. The Euronext Vigeo Emerging Market Sustainability
certified hardware translates into a saving of 2.6 Index also includes Wipro among the 70 most advanced
million KwW of energy, reduction of 598 tons eq. companies in the Emerging Market Region. We are also
member of FTSE4Good and Global Sector leader.
»» Enhancing Virtualization Platform: Till date
we have migrated 6300 users from traditional Highlights of the year
physical desktop to Virtual Desktop Infrastructure
(VDI). This has led to reduction in energy The following table details the different types of engagement
consumption, easier operations and cost saving. exercises undertaken by the company in FY 2019:

»» Asset re-utilization: Through proactive maintenance Particulars Q1 Q2 Q3 Q4 FY

and upgrades, we have been able to reutilize 16% of
the assets post their scheduled end of life. Investors 39 27 23 30 119
meetings & Calls
»» Managed Print Services: This outcome-based Conference - 4 3 2 9
model, where Wipro’s printing services are
Road Show 1 1 2 1 5
managed through an independent third party helps
Conducted
generate higher operational efficiency through
better controls and analytics as well as reduced
resource consumption (paper, toner) and planned
asset refresh. Consumables and printer issues are
tracked remotely and managed by MPS vendor.

Wipro Limited 49
Board’s
Report

On behalf of the Board of Directors (the “Board”) of the Standalone Consolidated

Company, it gives me immense pleasure to present the 73rd 2018-19 2017-18 2018-19 2017-18
Board’s Report, along with the Balance Sheet, Profit and
Loss account and Cash Flow statements, for the financial Appropriations
year ended March 31, 2019. Dividend 4,524 4,525 4,504 4,499
I. Financial Performance Corporate tax on 930 921 930 921
distribution of dividend
The standalone and consolidated financial statements
for the financial year ended March 31, 2019, forming part EPS
of this Annual Report, have been prepared in accordance - Basic 12.67 16.26 14.99 16.85
with the Indian Accounting Standards (Ind AS) as notified - Diluted 12.64 16.23 14.95 16.82
by the Ministry of Corporate Affairs.
On a consolidated basis, our sales increased to ` 585,845 Dividend
million for the current year as against ` 544,871 million in
Pursuant to Regulation 43A of the Securities and Exchange
the previous year, recording an increase of 7.52%. Our net
Board of India (Listing Obligations and Disclosure
profits increased to ` 90,179 million for the current year
Requirements) Regulations, 2015, as amended (“Listing
as against ` 80,031 million in the previous year, recording
Regulations”), the Board has approved and adopted a
an increase of 12.68%.
Dividend Distribution Policy. The policy details various
On a standalone basis, our sales increased to ` 480,298 considerations based on which the Board may recommend
million for the current year as against ` 447,100 million or declare Dividend, dividend track record, usage of
in the previous year, recording an increase of 7.43%. Our retained earnings for corporate actions, etc. The policy is
net profits declined to ` 76,140 million in the current year available on the Company’s website at https://www.wipro.
as against ` 77,228 million in the previous year, recording com/investors/corporate-governance.
a decline of 1.41%.
Pursuant to the approval of the Board of Directors on
Key highlights of financial performance of your Company January 18, 2019, your Company paid an interim dividend
for the financial year 2018-19 are provided below: of ` 1/- per equity share of face value of ` 2/- each, to
(` in millions) shareholders who were on the register of members as
on January 30, 2019, being the record date fixed for
Standalone Consolidated
this purpose. The Board has not recommended a final
2018-19 2017-18 2018-19 2017-18 dividend and the interim dividend of ` 1/- declared by
Sales 480,298 447,100 585,845 544,871 the Board in January 2019 shall be considered as the
Other Operating Income 940 - 4,344 - final dividend for the financial year 2018-19. Thus, the
Other Income 25,686 24,796 26,138 25,487 total dividend for the financial year 2018-19 remains
Profit before Tax 98,705 100,343 115,422 102,422 ` 1 per equity share.
Provision for Tax 22,565 23,115 25,243 22,391
Your Company is in compliance with its Dividend
Net profit for the year 76,140 77,228 90,179 80,031 Distribution policy as approved by the Board.
Other comprehensive 1,246 (7,300) 800 (3,127)
(loss)/income for the Issue of Bonus Equity Shares
year The Board of Directors at their meeting held on January
Total comprehensive 77,386 69,928 90,979 76,094 18, 2019, recommended issue of bonus equity shares, in
income for the year the proportion of 1:3, i.e. 1 (One) bonus equity share of
Total comprehensive ` 2/- each for every 3 (three) fully paid-up equity shares
income for the period held (including American Depository Shares (“ADS”)). The
attributable to: said bonus issue was approved by the Members of the
Minority Interest - - 251 19 Company vide resolution dated February 22, 2019 passed
Equity holders 77,386 69,928 90,728 76,885 through postal ballot/e-voting, subsequent to which, on

Annual Report 2018-19 65

March 8, 2019, 1,508,469,180 bonus shares were allotted During the year 2018-19, the Company allotted 1,681,717
to the Members whose names appeared on the register equity shares and transferred 2,599,183 equity shares
of members as on March 7, 2019, being the record date of ` 2/- each from Wipro Equity Reward Trust, pursuant
fixed for this purpose. to exercise of stock options by eligible employees and
allotted 1,508,469,180 equity shares of ` 2/- each as
As part of the aforesaid allotment, 106,273 bonus equity
bonus equity shares on March 8, 2019 by capitalization of
shares representing fractional entitlement(s) of eligible
sums standing to the credit of the free reserves and/or the
Members were consolidated and allotted to the trustee
securities premium account and/or the capital redemption
appointed by the Board. Subsequently, the trustee sold
reserve account of the Company. Consequently, the
such equity shares at the prevailing market price and
paid-up equity share capital of the Company as at March
distributed the net sale proceeds, after adjusting the
31, 2019 stood at ` 12,067,870,776/- consisting of
costs and expenses in respect thereof, among the eligible
6,033,935,388 equity shares of ` 2/- each.
Members in proportion to their respective fractional
entitlements. During the year under review, the Company has not issued
shares with differential voting rights and sweat equity
Buyback of Equity Shares
shares.
On April 16, 2019, the Board approved a proposal to
Transfer to Reserves
buyback up to 323,076,923 (Thirty Two Crores Thirty Lakhs
Seventy Six Thousand Nine Hundred and Twenty Three) Appropriations to general reserve for the financial year
equity shares of the Company for an aggregate amount ended March 31, 2019 as per standalone and consolidated
not exceeding ` 105,000,000,000/- (Rupees Ten Thousand financial statements are as under:
Five Hundred Crores only), being 23.03% of the aggregate
(` In millions)
of the fully paid-up equity share capital and free reserves
as per the audited standalone balance sheet as at March Standalone Consolidated
31, 2019, at a price of ` 325/- (Rupees Three Hundred and
Net profit for the year 76,140 90,037
Twenty Five) per equity share.
Balance of Reserve at the 413,578 470,215
Subsequently, vide resolution dated June 1, 2019, the beginning of the year
shareholders approved the buyback of equity shares Adjustment on adoption of (1,605) (2,279)
through postal ballot/e-voting. The buyback is proposed Ind AS 115
to be made from all the existing Members of the Company
Adjustment on account of (975) -
as on June 21, 2019, being the record date for this purpose,
merger
on a proportionate basis under the tender offer route in
accordance with the provisions contained in the Securities Transfer to General Reserve - -
and Exchange Board of India (Buy-Back of Securities) Balance of Reserve at the 481,852 552,158
Regulations, 2018 and the Companies Act, 2013 and the end of the year
rules made thereunder.
Subsidiary Companies
Share Capital In accordance with Section 129(3) of the Companies
During the financial year 2018-19, your Company’s authorized Act, 2013, a statement containing salient features of
capital was increased from ` 11,265,000,000/- (Rupees the financial statements of the subsidiary companies in
One Thousand One Hundred and Twenty Six Crores and Form AOC-1 is provided at page 285 of this Annual Report.
Fifty Lakhs) to ` 25,274,000,000 /- (Rupees Two Thousand The statement also provides details of performance and
Five Hundred and Twenty Seven Crores and Forty Lakhs) financial position of each of the subsidiaries.
by creation of additional 7,004,500,000 (Seven Hundred Audited financial statements together with related
Crores and Forty Five Lakhs) equity shares of ` 2/- (Rupees information and other reports of each of the subsidiary
Two each). The said increase in authorized share capital companies have also been placed on the website of the
was pursuant to approval of shareholders through postal Company at www.wipro.com.
ballot/e-voting dated February 22, 2019 and also as per the
During the financial year 2018-19, your Company invested
terms of the Scheme (as defined below) approved by the an aggregate of ` 36,373 million in its direct subsidiaries.
Hon’ble National Company Law Tribunal (“NCLT”), Bengaluru Apart from this, your Company funded its subsidiaries,
Bench, on account of clubbing the authorized share capital from time to time, as per the fund requirements, through
of Appirio India Cloud Solutions Private Limited with and into loans, guarantees and other means to meet working
the authorized capital of your Company. capital requirements.

66 Wipro Limited
During the financial year 2018-19, your Company has Particulars of Loans, Advances, Guarantees and
carried out restructuring of its following subsidiaries: Investments
a) Merger of Wipro Technologies Austria GmbH, Wipro Pursuant to Section 186 of Companies Act, 2013 and
Information Technology Austria GmbH, NewLogic Schedule V of the Listing Regulations, disclosure on
Technologies SARL and Appirio India Cloud Solutions particulars relating to loans, advances, guarantees
Private Limited (wholly owned subsidiaries) with and investments are provided as part of the financial
and into Wipro Limited pursuant to order dated statements.
March 29, 2019 passed by NCLT approving the scheme of
Deposits
amalgamation (“Scheme”) for the aforesaid merger. As
per the said Scheme, the appointed date is April 1, 2018. Your Company has not accepted any deposits from public
and as such, no amount on account of principal or interest
b) Liquidation of Appirio Singapore Pte Ltd and Appirio
on public deposits was outstanding as on the date of the
GmbH.
balance sheet.
c) Merger of Cellent Mittelstandsberatung GmbH with
II. Business
and into Cellent GmbH, Germany.
d) Reduction of the Company’s equity holding in WAISL Your Company is a leading information technology,
Limited (formerly known as Wipro Airport IT Services consulting and business process services company. Your
Limited), which was a joint venture between Wipro Company’s range of services includes digital strategy,
Limited and Delhi International Airport Limited, from customer-centric design, consulting, infrastructure
74% to 11%, by selling the stake to Antariksh Softtech services, business process services, research and
Private Limited on April 5, 2018. development, cloud, mobility and advanced analytics and
product engineering. Your Company offers its customers a
e) Setting up of a new subsidiary namely Wipro IT variety of commercial models including time and material,
Services S.R.L in Romania. fixed price, capacity based, pay-per-use, as-a-service and
f) Setting up of a new subsidiary namely Wipro US outcome based models. Your Company offers all of these
Foundation in USA. services and models globally by leveraging its proprietary
products, platforms, partnerships and solutions, including
Transfer to Investor Education and Protection Fund state of the art automation technologies such as cognitive
a) As required under the Investor Education and intelligence tool, Wipro HOLMES Artificial Intelligence
Protection Fund Authority (Accounting, Audit, PlatformTM (“Wipro HOLMESTM”).
Transfer and Refund) Rules, 2016 (“IEPF Rules”), The vision for your Company’s business is “to earn our
during the year 2018-19, unclaimed dividend clients’ trust and maximize value of their businesses by
for financial years 2010-11 and 2011-12 of helping them in their journey to ‘re-invent’ their business
` 7,929,792/- and ` 4,714,164/- respectively, were and operating models with its ‘Digital’ first approach and
transferred to the Investor Education and Protection best in class execution”. To realize its vision and strategy,
Fund (“IEPF”). your Company is prioritizing and investing to drive growth
b) Pursuant to the provisions of Section 124(6) of the in key strategic fields such as digital, cloud, cybersecurity
Companies Act, 2013 and the IEPF Rules, during the and industrial and engineering services through its “Big
year 2018-19, 60,958 equity shares in respect of Bet” program. For example, your Company’s “Big Bet” in
which dividend has not been claimed for the final each of digital and cloud are at the heart of its Business
dividend declared in financial year 2010-11 and Re-imagination and Engineering Transformation and
interim dividend declared in financial year 2011-12 Modernization pillars, while the “Big Bet” in industrial
were transferred to the IEPF authority. and engineering services is central to its Connected
Intelligence pillar and the “Big Bet” in cyber security is
c) Pursuant to Rule 6(8) of the IEPF Rules, under the central to its Trust pillar.
bonus issue, 426,445 equity shares were allotted to
the IEPF authority based on their shareholding as on Your Company provides its clients with competitive
the record date of March 7, 2019 and an amount of advantages by applying various emerging technologies
` 102,485 /- pertaining to sale proceeds of fractional and ensuring cyber resilience and cyber assurance. Your
bonus shares were transferred to the IEPF. Company works with its clients not only to enable their

Annual Report 2018-19 67

digital future, but also to drive hyper efficiencies across During July 2018, your Company has entered into a
their technology infrastructure, applications and core strategic partnership arrangement with Alight Solutions,
operations, enabling them to achieve cost leadership in a leader in technology-enabled health, wealth, HR and
their businesses. Going forward, digital enterprises will finance solutions, which will reshape the HR services
increasingly require partners, such as Wipro, who are industry by providing Alight’s clients with the breadth
able to bring capabilities that span consultancy, design, and depth of capabilities from the two industry-leading
engineering, systems integration and operations to enable organizations. Your Company has also divested its
them to achieve digital transformation. These combined Workday and Cornerstone OnDemand business to Alight
capabilities will only be effective if delivered in the Solutions LLC.
context of the relevant industry or domain. Hence, it is
Further, your Company completed divestment of its data
critical to your Company that it provides strong domain
center services business to Ensono Holdings, LLC, a
expertise along with “Digital”. Your Company has invested
leading hybrid IT services provider, consisting of Wipro
significantly in building domain expertise and will continue Data Centre and Cloud Services, Inc. (USA) and data center
to strengthen its domain capabilities. services business in certain other countries.
Your Company’s IT Products segment provides a range The strategic investment arm of your Company, Wipro
of third-party IT products, which allows it to offer Ventures is a $100 million fund that invests in early to mid-
comprehensive IT system integration services. These stage enterprise software startups. As of March 31, 2019,
products include computing, platforms and storage, Wipro Ventures has active investments in and partnered
networking solutions, enterprise information security and with 13 startups in the following areas – AI (Avaamo, Inc.,
software products, including databases and operating Vicarious FPC, Inc.), Business Commerce (Tradeshift, Inc.),
systems. Your Company continues to focus on being a Cybersecurity (IntSights Cyber Intelligence Ltd., Vectra
system integrator of choice where it provides IT Products Networks, Inc., CyCognito), Data Management (Imanis Data,
as a complement to its IT Services offerings rather than Inc.), Industrial IoT (Altizon Systems Private Ltd.), Fraud
sell standalone IT Products. & Risk Mitigation (Emailage Corp.), Testing Automation
Sector Outlook  (Headspin, Inc., Tricentis GmbH) and Cloud Infrastructure
(Cloudgenix, Moogsoft). In addition to direct investments
According to the Strategic Review 2019 published by in emerging startups, Wipro Ventures had invested in four
NASSCOM (the “NASSCOM Report”), “Digital” continues to enterprise-focused venture funds: TLV Partners, Work-
drive growth (more than 30% of growth in fiscal year 2019) Bench Ventures, Glilot Capital Partners and Boldstart
and now contributes $33 billion to the overall IT industry Ventures. During the year ended March 31, 2019, one of our
in India. Technologies such as industrial automation, portfolio companies, Demisto, was acquired.
robotics, cloud, Internet of things (“IoT”), augmented
reality (“AR”)/virtual reality (“VR”) and blockchain continue Management Discussion and Analysis Report
to fuel growth. In terms of Regulation 34 of the Listing Regulations and
Global IT service providers offer a range of end–to-end SEBI circular SEBI/HO/CFD/CMD/CIR/P/2017/10 dated
February 6, 2017, your Company has adopted salient
software development, digital services, IT business
features of Integrated Reporting prescribed by the
solutions, research and development services, technology
International Integrated Reporting Council (‘IIRC’) as part
infrastructure services, business process services,
of its Management Discussion and Analysis report (“MD&A
consulting and related support functions. According to
Report”). The MD&A report, capturing your Company’s
the NASSCOM Report, IT export revenues from India grew
performance, industry trends and other material changes
by 8.3% to an estimated $136 billion in fiscal year 2019.
with respect to your Company and its subsidiaries,
Acquisitions, Divestments and Investments wherever applicable, are presented from pages 18 to 64
of this Annual Report.
Acquisitions are a key enabler for driving capability to build
industry domain, focus on key strategic areas, strengthen The MD&A Report provides a consolidated perspective of
presence in emerging technology areas including Digital, economic, social and environmental aspects material to
and increase market footprint in newer markets. Your its strategy and its ability to create and sustain value to
Company focuses on opportunities where it can further your Company’s key stakeholders and includes aspects
develop its domain expertise, specific skill sets and its of reporting as required by Regulation 34 of the Listing
global delivery model to maximize service and product Regulations on Business Responsibility Report. Statutory
enhancements and higher margins. section of Business Responsibility Report is provided from
pages 346 to 352 of this Annual Report.

68 Wipro Limited
 Standalone Financial Statements under Ind AS

Independent Auditor’s Report

To The Members of Wipro Limited Basis for Opinion
Report on the Audit of the Standalone Financial We conducted our audit of the standalone financial
Statements statements in accordance with the Standards on
Auditing specified under section 143(10) of the Act
Opinion
(SAs). Our responsibilities under those Standards are
We have audited the accompanying standalone financial further described in the Auditor’s Responsibility for the
statements of Wipro Limited (“the Company”), which Audit of the Standalone Financial Statements section
comprise the Balance Sheet as at March 31, 2019, of our report. We are independent of the Company in
the Statement of Profit and Loss (including Other accordance with the Code of Ethics issued by the Institute
Comprehensive Income), the Statement of Changes in of Chartered Accountants of India (ICAI) together with the
Equity and the Statement of Cash Flows for the year then ethical requirements that are relevant to our audit of the
ended, and a summary of significant accounting policies standalone financial statements under the provisions
and other explanatory information (herein after referred of the Act and the Rules made thereunder, and we have
to as “the standalone financial statements”). fulfilled our other ethical responsibilities in accordance
with these requirements and the ICAI’s Code of Ethics. We
In our opinion and to the best of our information and
believe that the audit evidence obtained by us is sufficient
according to the explanations given to us, the aforesaid
and appropriate to provide a basis for our audit opinion on
standalone financial statements give the information
the standalone financial statements.
required by the Companies Act, 2013 (“the Act”) in
the manner so required and give a true and fair view Key Audit Matters
in conformity with the Indian Accounting Standards
Key audit matters are those matters that, in our
prescribed under section 133 of the Act read with the
professional judgment, were of most significance in our
Companies (Indian Accounting Standards) Rules, 2015,
audit of the standalone financial statements of the current
as amended, (“Ind AS”) and other accounting principles
period. These matters were addressed in the context of our
generally accepted in India, of the state of affairs of
audit of the standalone financial statements as a whole,
the Company as at March 31, 2019, its profit, total
and in forming our opinion thereon, and we do not provide
comprehensive income, changes in equity and its cash
a separate opinion on these matters. We have determined
flows for the year ended on that date.
the matters described below to be the key audit matters
to be communicated in our report.

Sr. No. Key Audit Matter Auditor’s Response

1 Accuracy of recognition,measurement, Principal Audit Procedures
presentation and disclosures of
We assessed the Company’s process to identify the impact of adoption
revenues and other related balances
of the new revenue accounting standard.
in view of adoption of Ind AS 115
“Revenue from Contracts with Our audit approach consisted testing of the design and operating
Customers” (new revenue accounting effectiveness of the internal controls and substantive testing which
standard) included the following among others:
The application of the new revenue • Evaluated the design of internal controls relating to implementation
accounting standard involves of the new revenue accounting standard.
certain key judgements relating to
• Selected a sample of continuing and new contracts, and tested
identification of distinct performance
the operating effectiveness of the internal control, relating
obligations, determination of
to identification of the distinct performance obligations and
transaction price of the identified
determination of transaction price. We carried out a combination
performance obligations, the
of procedures involving inquiry and observation, reperformance and
appropriateness of the basis used
inspection of evidence in respect of operation of these controls.
to measure revenue recognized
over a period. Additionally, new • Tested the relevant information technology systems’ access and
revenue accounting standard change management controls relating to contracts and related
contains disclosures which involves information used in recording and disclosing revenue in accordance
collation of information in respect of with the new revenue accounting standard.

Annual Report 2018-19 137

Standalone Financial Statements under Ind AS

Sr. No. Key Audit Matter Auditor’s Response

disaggregated revenue and periods • Selected a sample of continuing and new contracts and performed
over which the remaining performance the following procedures among others:
o b l i g a t i o n s w i l l b e s a t i s f i e d • Read, analysed and identified the distinct performance obligations
subsequent to the balance sheet date. in these contracts.
Refer Note 3 to the Standalone • Compared these performance obligations with that identified and
Financial Statements. recorded by the Company.
• Samples in respect of revenue recorded for time and material
contracts were tested using a combination of approved time
sheets including customer acceptances, subsequent invoicing and
historical trend of collections and disputes.
• In respect of samples relating to fixed price contracts, progress
towards satisfaction of performance obligation used to compute
recorded revenue was verified with actual and estimated costs
from the revenue recognition systems.
• Sample of revenues disaggregated by type and service offerings
were tested with the performance obligations specified in the
underlying contracts.
• Performed analytical procedures for reasonableness of revenues
disclosed by type and service offerings.
• We reviewed the collation of information and the logic of the report
generated from the revenue recognition system used to prepare
the disclosure relating to the periods over which the remaining
performance obligations will be satisfied subsequent to the
balance sheet date.
2 Accuracy of revenue recognition Principal Audit Procedures
in respect of fixed price contracts Our audit approach was a combination of test of internal controls and
involves critical estimates. substantive procedures which included the following, among others:
Estimated effort is a critical estimate • Evaluated the design of internal controls relating to recording of
to determine revenues and liabilities efforts incurred and estimation of efforts required to complete the
for onerous obligations. This estimate performance obligations.
has a high inherent uncertainty as it • Tested the access and application controls pertaining to time
requires consideration of progress recording and allocation systems which prevents unauthorised
of the contract, efforts incurred till changes to recording of efforts incurred.
date and efforts required to complete
• Selected a sample of contracts and through inspection of
the remaining contract performance
evidence of performance of these controls, tested the operating
obligations.
effectiveness of the internal controls relating to efforts incurred
Refer Notes 3and 20to the Standalone and estimated.
Financial Statements. • Selected a sample of contracts and performed a retrospective
review of completed efforts and activities with the planned efforts
and activities to identify significant variations and verifiedwhether
those variations have been considered in estimating the remaining
efforts to complete the contract.
• Reviewed a sample of contracts with unbilled revenues to identify
possible delays in achieving milestones, which require change
in estimated efforts to complete the remaining performance
obligations.
• Performed analytical procedures and test of details for
reasonableness of incurred and estimated efforts.

138 Wipro Limited

 Consolidated Financial Statements under Ind AS

Independent Auditor’s Report on Consolidated

Financial Statements
To The Members of Wipro Limited Basis for Opinion
Report on the Audit of the Consolidated Financial We conducted our audit of the consolidated financial
Statements statements in accordance with the Standards on Auditing
specified under section 143 (10) of the Act (SAs). Our
Opinion
responsibilities under those Standards are further
We have audited the accompanying consolidated described in the Auditor’s Responsibility for the Audit
financial statements of Wipro Limited (“the Company”) of the Consolidated Financial Statements section of our
and its subsidiaries, (the Company and its subsidiaries report. We are independent of the Group in accordance
together referred to as “the Group”), which comprise the with the Code of Ethics issued by the Institute of
Consolidated Balance Sheet as at March 31, 2019, and the Chartered Accountants of India (ICAI) together with the
Consolidated Statement of Profit and Loss (including Other ethical requirements that are relevant to our audit of the
Comprehensive Income), the Consolidated Statement of consolidated financial statements under the provisions
Changes in Equity and the Consolidated Statement of of the Act and the Rules made thereunder, and we have
Cash Flows for the year then ended, and a summary of fulfilled our other ethical responsibilities in accordance
significant accounting policies and other explanatory with these requirements and the ICAI’s Code of Ethics. We
information (herein after referred to as “the Consolidated believe that the audit evidence obtained by us is sufficient
financial statements”). and appropriate to provide a basis for our audit opinion on
the consolidated financial statements.
In our opinion and to the best of our information and
according to the explanations given to us, the aforesaid Key Audit Matters
consolidated financial statements give the information
Key audit matters are those matters that, in our
required by the Companies Act, 2013 (“the Act”) in
professional judgment, were of most significance in
the manner so required and give a true and fair view
our audit of the consolidated financial statements of
in conformity with the Indian Accounting Standards
the current period. These matters were addressed in
prescribed under section 133 of the Act read with the
the context of our audit of the consolidated financial
Companies (Indian Accounting Standards) Rules, 2015,
statements as a whole, and in forming our opinion
as amended (‘Ind AS’), and other accounting principles
thereon, and we do not provide a separate opinion
generally accepted in India, of the consolidated state of
on these matters. We have determined the matters
affairs of the Group as at March 31,2019, consolidated
described below to be the key audit matters to be
profit, consolidated total comprehensive income,
communicated in our report.
consolidated changes in equity and consolidated cash
flows for the year ended on that date.

Sr. No. Key Audit Matter Auditor’s Response

1 Accuracy of recognition, measurement, Principal Audit Procedures
presentation and disclosures of
We assessed the Group’s process to identify the impact of adoption
revenues and other related balances
of the new revenue accounting standard.
in view of adoption of Ind AS 115
“Revenue from Contracts with Our audit approach consisted testing of the design and operating
Customers” (new revenue accounting effectiveness of the internal controls and substantive testing as
standard) follows:
The application of the new revenue • Evaluated the design of internal controls relating to implementation
accounting standard involves of the new revenue accounting standard.
certain key judgements relating to
• Selected a sample of continuing and new contracts, and tested
identification of distinct performance
the operating effectiveness of the internal control, relating
obligations, determination of
to identification of the distinct performance obligations and
transaction price of the identified
determination of transaction price. We carried out a combination
performance obligations, the
of procedures involving inquiry and observation, reperformance and
appropriateness of the basis used
inspection of evidence in respect of operation of these controls.
to measure revenue recognized over

Annual Report 2018-19 207

Consolidated Financial Statements under Ind AS

Sr. No. Key Audit Matter Auditor’s Response

a period. Additionally, new revenue • Tested the relevant information technology systems’ access and
a c c o u n t i n g s t a n d a rd c o n t a i n s change management controls relating to contracts and related
disclosures which involves collation of information used in recording and disclosing revenue in accordance
information in respect of disaggregated with the new revenue accounting standard.
revenue and periods over which the • Selected a sample of continuing and new contracts and performed
remaining performance obligations the following procedures among others:
will be satisfied subsequent to the • Read, analysed and identified the distinct performance
balance sheet date. obligations in these contracts.
Refer Note 3 to the Consolidated • Compared these performance obligations with that identified
Financial Statements. and recorded by the Group.
• Samples in respect of revenue recorded for time and material
contracts were tested using a combination of approved time
sheets including customer acceptances, subsequent invoicing
and historical trend of collections and disputes.
• In respect of samples relating to fixed price contracts, progress
towards satisfaction of performance obligation used to compute
recorded revenue was verified with actual and estimated costs
from the revenue recognition systems.
• Sample of revenues disaggregated by type and service offerings
were tested with the performance obligations specified in the
underlying contracts.
• Performed analytical procedures for reasonableness of revenues
disclosed by type and service offerings.
• We reviewed the collation of information and the logic of the report
generated from the revenue recognition system used to prepare
the disclosure relating to the periods over which the remaining
performance obligations will be satisfied subsequent to the
balance sheet date.
2 Accuracy of revenue recognition Principal Audit Procedures
in respect of fixed price contracts Our audit approach was a combination of test of internal controls and
involves critical estimates. substantive procedures which included the following, among others:
Estimated effort is a critical estimate • Evaluated the design of internal controls relating to recording of
to determine revenues and liabilities efforts incurred and estimation of efforts required to complete the
for onerous obligations. This estimate performance obligations.
has a high inherent uncertainty as it • Tested the access and application controls pertaining to time
requires consideration of progress recording and allocation systems which prevents unauthorised
of the contract, efforts incurred till changes to recording of efforts incurred.
date and efforts required to complete • Selected a sample of contracts and through inspection of
the remaining contract performance evidence of performance of these controls, tested the operating
obligations. effectiveness of the internal controls relating to efforts incurred
Refer Notes 3and 20 to the and estimated.
Consolidated Financial Statements. • Selected a sample of contracts and performed a retrospective
review of completed efforts and activities with the planned efforts
and activities to identify significant variations and verifiedwhether
those variations have been considered in estimating the remaining
efforts to complete the contract.
• Reviewed a sample of contracts with unbilled revenues to identify
possible delays in achieving milestones, which require change
in estimated efforts to complete the remaining performance
obligations.
• Performed analytical procedures and test of details for
reasonableness of incurred and estimated efforts.

208 Wipro Limited

 Consolidated Financial Statements Under IFRS

Independent Auditor’s Report

Report of Independent Registered Public Accounting Firm revenue from contracts with customers in fiscal year 2019
due to the adoption of International Financial Reporting
To the Shareholders and the Board of Directors of Wipro
Standard 15, Revenue from Contracts with Customers.
Limited
Basis for Opinion
Opinion on the Financial Statements
These financial statements are the responsibility of the
We have audited the accompanying consolidated
Company’s management. Our responsibility is to express
statements of financial position of Wipro Limited and
an opinion on the Company’s financial statements based
subsidiaries (the “Company”) as of March 31, 2019 and
on our audits. We are a public accounting firm registered
2018, the related consolidated statements of income,
with the PCAOB and are required to be independent with
consolidated statements of comprehensive income,
respect to the Company in accordance with the U.S. federal
consolidated statements of changes in equity, and
securities laws and the applicable rules and regulations of
consolidated statements of cash flows for each of the
the Securities and Exchange Commission and the PCAOB.
two years in the period ended March 31, 2019 and the
related notes (collectively referred to as the “financial We conducted our audits in accordance with the standards
statements”). In our opinion, the financial statements of the PCAOB. Those standards require that we plan and
present fairly, in all material respects, the financial perform the audit to obtain reasonable assurance about
position of the Company as of March 31, 2019 and March whether the financial statements are free of material
31, 2018, and the results of its operations and its cash misstatement, whether due to error or fraud. Our audits
flows for each of the two years in the period ended March included performing procedures to assess the risks
31, 2019, in conformity with the International Financial of material misstatement of the financial statements,
Reporting Standards as issued by the International whether due to error or fraud, and performing procedures
Accounting Standards Board (“IFRS”). that respond to those risks. Such procedures included
examining, on a test basis, evidence regarding the
We have also audited, in accordance with the standards
amounts and disclosures in the financial statements. Our
of the Public Company Accounting Oversight Board
audits also included evaluating the accounting principles
(United States) (PCAOB), the Company’s internal control
used and significant estimates made by management,
over financial reporting as of March 31, 2019, based on
as well as evaluating the overall presentation of the
criteria established in Internal Control — Integrated
financial statements. We believe that our audits provide
Framework (2013) issued by the Committee of Sponsoring
a reasonable basis for our opinion.
Organizations of the Treadway Commission and our report
dated June 7, 2019, expressed an unqualified opinion on
the Company’s internal control over financial reporting.
Deloitte Haskins & Sells LLP
Change in Accounting Principle
Bengaluru, India
As discussed in Note 3 to the financial statements, the
Company has changed its method of accounting for June 11, 2019

Annual Report 2018-19 289