Vijayanagara Sri Krishnadevaraya University

An Internship Report on Wipro VV Sanghas Allum Karibasappa Institute of Management, Bellary

Submitted to Ms Renuka Baburao

Submitted by

Contents Chapter 1: - Company profile - Background of the company - Vision and mission - Ownership pattern - Organization structure Chapter 2: - Profile of products and services - Area of operation Chapter 3: - Achievements and awards - Punch line and Logo Chapter 4: - SWOT analysis - Unique competitive advantage Chapter 5: - Analysis of financial statement

 Chapter 1: - Company profile - Background of the company - Vision and mission - Ownership pattern - Organization structure

Wipro Company Profile

Wipro Technologies is a global services provider delivering technology-driven business solutions that meet the strategic objectives of our clients. Wipro has 55+ Centers of Excellence that create solutions around specific needs of industries. Wipro delivers unmatched business value to customers through a combination of process excellence, quality frameworks and service delivery innovation. Wipro is the Worlds first CMMi Level 5 certified software services company and the first outside USA to receive the IEEE Software Process Award.Azim H. Premji has been Wipro Ltd.s Chairman of the Board and Managing Director since September 1968. Mr. Premji holds a Bachelor of Science in Electrical Engineering from Stanford University. Currently, he is also a Director of Media Lab Asia. The largest independent R&D Services provider in the world *Over half billion revenue from R&D *Among the top 3 offshore BPO services provider in the world *A strategic partner to five of the top ten most innovative companies in the world *Only Indian company to be ranked among the top 10 global outsourcing providers in IAOPs 2006 Global Outsourcing 100 listing With over 25 years in the Information Technology business, Wipro Technologies is the largest outsourced R & D Services provider and one of the pioneers in the remote delivery of IT services. Being a global provider of consulting, IT Services, outsourced R&D, infrastructure outsourcing and business process services, we deliver technology-driven business solutions that meet the strategic objectives of our Global 2000 customers. We are ranked 20 th in the Global Top Companies for Leaders 2007 and ranked #5 in the Asia-Pacific Region. (By Hewitt Associates, Fortune Magazine and the RBL group) Wipro has a well-defined and robust partner ecosystem. This enables it to provide a complete range of R&D/product engineering solutions to its customers. It uses the "extended engineering" model (where a technology company opens its R&D department to external engineering partners) to leverage R&D investment, access new knowledge, and gain experience globally. Wipros revenue for these services grew by 30% as against head count growth of 24.1%. This speaks volumes about Wipros capability to maximize its asset utilization.

Wipro has a well-defined end-to-end service offering strategy. This will enable it to get additional portions of its customers business.

Wipro Technologies is the No.1 provider of integrated business, technology and process solutions on a global delivery platform. Wipros complete range of IT Services addresses the needs of both technology and business requirements to help organizations leverage leading-edge technologies for business improvement. Wipro takes charge of the IT needs of the entire enterprise. The gamut of services extends from Enterprise Application Services (CRM, ERP, e-Procurement and SCM), to e-Business solutions. Wipros enterprise solutions have served and continue to serve clients from a range of industries including Energy and Utilities, Finance, Telecom, and Media and Entertainment. Wipros TIS is the largest Indian IT infrastructure service provider Wipros Technology Infrastructure Services (TIS) is the largest Indian IT infrastructure service provider in terms of revenue, people and customers with more than 200 customers in US, Europe, Japan and over 650 customers in India. It is powered by the expert skills of over 6,500 technical specialists and state-of-the-art BS 15000 certified infrastructure for operations support. A phased approach towards process standardization, process optimization and process reengineering. Wipro BPO provides a broad range of services from customer relationship management, back office transaction processing to industry-specific solutions. The key element of services delivery is an integrated approach towards providing increasing value over the entire course of our client relationships. This involves a phased approach towards process standardization, process optimization and process re-engineering True value from technology requires an in-depth understanding of business strategy. Todays businesses need partners who can talk about strategy and technology in the same conversation. At Wipro, we believe true value from technology requires an in-depth understanding of business strategy. Our cross-industry consulting services help you craft a vision for your organization and then provide a specific, practical business and technology framework that will make that vision a reality. Our consulting competencies spread across business, process, quality and technology consulting. We've developed a model called "Extended Engineering that leverages synergies across the value chain

Company Background
Incorporation Year Chairman Company Secretary Registered Office URL Auditors Listing BSE Code NSE Symbol BSE Group Index Constituent of Face Value (Unit Rs. INR) Market Lot ISIN Registrar Details 1945 Azim H Premji V Ramachandran Survey No 76 P & 80 P Sarjapur Rd, Doddakkanahalli, Carmelram PO, , , Bangalore - 560035, Karnataka http://www.wipro.com BSR & Co , P D Dani & Co BSE , NSE 507685 WIPRO A BSE Sensex , BSE 100 INDEX , BSE 200 , BSE 500 , BSE I.T.SECTOR , BSE Technology , CNX IT , S&P CNX 500 , S&P CNX NIFTY , CNX 100 , CNX Service Sector Index 2.00 1 INE075A01022 Karvy Computer Share Private Ltd, Plot No 17-24, Vittal Rao Nagar, Near Image Hospital, Reliance Cybervilae, Vittalrao Nagar, Madhapur, Hyderabad - 500081, Andhra Pradesh

Overview
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Wipro started as a vegetable oil company in 1947 from an old mill founded by Azim Premji's father. When his father died in 1966, Azim, a graduate in Electrical Engineering from Stanford University, took on the leadership of the company at the age 21. He repositioned it and transformed Wipro (Western India Vegetable Products Ltd) into a consumer goods company that produced hydrogenated cooking oils/fat company, laundry soap, wax and tin containers and later set up Wipro Fluid Power to manufacture hydraulic and pneumatic cylinders in 1975. At that time, it was valued at $2 million. In 1977, when IBM was asked to leave India, Wipro entered the information technology sector. In 1979, Wipro began developing its own computers and in 1981, started selling the finished product. This was the first in a string of products that would make Wipro one of India's first computer makers. The company licensed technology from Sentinel Computers in the United States and began building India's first mini-computers. Wipro hired managers who were computer savvy, and strong on business experience. In 1980 Wipro moved in software development and started developing customized software packages for their hardware customers. This expanded their IT business and subsequently invented the first Indian 8086 chip. Since 1992, Wipro began to grow its roots off shore in United States and by 2000 Wipro Ltd ADRs were listed on the New York Stock Exchange. With over 25 years in the Information Technology business, Wipro Technologies is the largest outsourced R & D Services provider and one of the pioneers in the remote delivery of IT services. Being a global provider of consulting, IT Services, outsourced R&D, infrastructure outsourcing and business process services, we deliver technologydriven business solutions that meet the strategic objectives of our Global 2000 customers. Wipro today employs 96,000 people in over 50 countries. A career at Wipro means to learn and grow continuously, opportunities to work on the latest technologies alongside the finest minds in the industry, competitive salaries, stock options and excellent benefits.

vision
Contribute for global e-society, where a wide range of information is being exchanged beyond time and space over global networks, which breaks down the boundaries among
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countries, regions and cultures, allowing individuals to take part in various social activities in an impartial, secure way. Continuous effort to enhance peoples lifestyle and quality by means of developing new technology in wireless communication

Mission
Our mission is to be a RF System Solution Provider, through its innovative research and design works for a new world of broadband wireless communications.

Share holding pattern

Particular Promoter Holding Indian Promoters Foreign Promoters Non-Promoter holdings (Other than Public) Financial Institutions/Banks FII/Foreign Fin Inst/Foreign Banks Corporate Bodies Government Holdings OCB NRI Mutual Funds Other Foreign Holdings General Public Individual Holding Up to Rs. 1 lakh Individual Holding Excess of Rs. 1 lakh Others Total No. Of Shares 1945953763 0 71406388 129418021 73285661 0 0 53471 15054436 64307650 53396485 83069923 16050003 2451995801 Percent Shares(%) 79.36 0.00

5.28 2.99 0.00 0.00 0.61 2.62 2.18 3.39 0.65 100.00

Group The names of the Promoters and entities comprising group as defined under the Monopolies and Restrictive Trade Practices (MRTP) Act, 1969,
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Sl. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Name of the shareholder Azim H Premji Yasmeen A Premji Rishad Azim Premji Tariq Azim Premji Mr Azim Hasham Premji Partner Representing Hasham Traders Mr Azim Hasham Premji Partner Representing Prazim Traders Mr Azim Hasham Premji Partner Representing Zash Traders Regal Investments & Trading Company Pvt. Ltd. Vidya Investment & Trading Company Pvt. Ltd. Napean Trading & Investment Company Pvt. Ltd. Azim Premji Foundation (I) Pvt. Ltd Azim Premji Trust Azim Premji Trustee Company Private Limited Azim Premji Foundation for Development Azim Premji Foundation

No. of shares 56,043,060 637,600 568,000 159,000 326,259,000 325,017,000 324,244,800 51,014,200 38,860,600 38,263,000 6,506,000 Nil Nil Nil Nil

Organization Structure

Nature of business
Wipro Technologies deals in following businesses:

IT Services: Wipro provides complete range of IT Services to the organization. The range of services extends from Enterprise Application Services (CRM, ERP, e-Procurement

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and SCM) to e-Business solutions. Wipro's enterprise solutions serve a host of industries such as Energy and Utilities, Finance, Telecom, and Media and Entertainment. Product Engineering Solutions: Wipro is the largest independent provider of R&D services in the world. Using "Extended Engineering" model for leveraging R&D investment and accessing new knowledge and experience across the globe, people and technical infrastructure, Wipro enables firms to introduce new products rapidly. Technology Infrastructure Service: Wipro's Technology Infrastructure Services (TIS) is the largest Indian IT infrastructure service provider in terms of revenue, people and customers with more than 200 customers in US, Europe, Japan and over 650 customers in India. Business Process Outsourcing: Wipro provides business process outsourcing services in areas Finance & Accounting, Procurement, HR Services, Loyalty Services and Knowledge Services. In 2002, Wipro acquiring Spectra mind and became one of the largest BPO service players. Consulting Services: Wipro offers services in Business Consulting, Process Consulting, Quality Consulting, and Technology Consulting. Group Companies of Wipro: Wipro Infrastructure Engineering: It has emerged as the leader in the hydraulic cylinders and truck tipping systems market in India. Wipro Info tech: It is one of the leading manufacturers of computer hardware and a provider of systems integration services in India.

Wipro Lighting: It manufactures and markets the Wipro brand of luminaries. Wipro Lighting offers lighting solutions across various application areas such as commercial lighting for modern work spaces, manufacturing and pharmaceutical companies, designer petrol pumps and outdoor architecture

Chapter 2: - Profile of products and services - Area of operation

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Products and services

Wipro Systems & Technology

Desktops Notebooks Datacenter Systems E Mobility Wipro Desktops are built on industry standard architecture and open technologies offering business agility and flexibility to our customers. We take pride in our leading edge technology through our alliance with global tech leaders and strong product engineering excellence.

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Wipro Info tech delivers customized enterprise products that are geared to address your technology infrastructure requirements. From a technology and business perspective, we study your IT environment to get a clear understanding of your requirements. Aligning your IT project with cost efficient resources and delivery timelines, we deliver enterprise products that include the following: Networking Solutions We support clients business needs by building a robust network infrastructure. The network infrastructure supports a variety of client applications in a mission critical environment across verticals, on a 24x7x365 basis. Our service offerings span the entire E2E lifecycle include Consulting, Planning, Designing, Deployment, Sustaining, Management and Assessment Solution Offerings in and around IP Infrastructure LAN WAN WLAN Data Centre Security Protection of the network infrastructure with a security layer Innovative Solutions Unified Communications Telepresence Collaboration Contact Centre Mobility Digital Media Systems Smart Buildings, Physical Security and many more Infrastructure Security

Firewalls Intrusion prevention Unified Threat Management Web Security

Email Security Secure Remote Access Network Behavior Analysis Wireless Security Information Security

Data Loss Prevention Encryption Endpoint Security Application Security Database Security Vulnerability Management Policy Compliance Security Incident & Event Management Interaction Security
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Strong Authentication SAP Security Privileged Password Management Fraud Management Identity & Access Management

Emerging Technologies Our experts optimize and enhance clienteles existing IT infrastructure. Our solutions are in alignment with the clients multiple layered IT infrastructure spanning Data Centers, Compute Platforms, Storage, Applications and Networks. A deep understanding of the clients IT environment and our wide range of IT solutions helps us to enhance their business processes with increased agility and greater savings on time, cost and resources. Our offerings span the domains of IT infrastructure Consolidation, Virtualization and Application Performance Management. Our solution offerings cover

WAN Optimization Application Delivery Control Application Acceleration Quality of Service Visibility Application Performance Management Remote Infrastructure Management Compute Infrastructure Storage Data Centre

Enterprise Management Our large team of certified consultants with exposure to various segments of client infrastructure and our partnerships with industry leaders such as CA, HP, IBM and BMC enables us to deliver technology customized enterprise management solutions.We offer implementation, development and post-implementation support and enhancement for your enterprise. Our proven track record in translating the defined ITSM processes in to

service management tool suite ensures that the implementations are in line with industry best practices and standards such as ITIL. Our enterprise management solutions

Server and database management Network management Application management Desktops management Performance management Storage management Advanced help desk management.

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Contact Centre Infrastructure Our experts understand clients business needs, evaluate clients IT infrastructure and recommend the optimum technology for contact centre infrastructure needs. We provide help in implementing contact centre infrastructure solutions in a dynamic IT environment. Our service offerings include strategic consulting & contact centre design, integration & application development on IVR/CTI, application support & maintenance and audit & reengineering. Our solution offerings Convergence Solutions Applications and Business Consulting Networking Solutions CC, Voice and Convergence Networking Applications/ Business Consulting Platforms & Storage Our platform productivity practices such as data centre computing, data & storage management, next generation computing & enhancement solutions drive asset productivity and help create agile enterprises. As an end-to-end solutions provider, we also offer data storage management & products, business continuity and disaster recovery plans four clientele.

Consulting Plan, Design & Implementation Information & Data Management Enhancement & Optimization

Analytics & Information Management Enterprises today need insight into processes and results that will drive the right decisions to deliver sustainable business performance. Business leaders, who master the process to capture, store and translate enterprise wide data into actionable business insights, will continue to outperform competition. Wipro's Analytics and Information Management services help customers accelerate enterprise wide performance through smart, agile and integrated analytical solutions and frameworks. By bringing together the combined expertise of Analytics, Business Intelligence, Performance Management and Information Management, we help customers derive valuable insights, make informed decisions and drive revenues by harnessing and leveraging enterprise information. We offer comprehensive services across:
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Business Analytics -- helping customers derive actionable insights across key aspects concerning their customers, products and services enabling them to make quicker, accurate decisions. Business Intelligence and Performance Management -- enabling customers improve operational efficiencies, drive transformation and change management initiatives by monitoring and managing performance. Information Management -- providing customers a competitive edge through improved management of information. Through our comprehensive Analytics and Information Management offerings, you can

derive valuable insights, improve your visibility and build agility into your entire decision making process. It's this agility that your business requires to thrive even as financial conditions continue to change.

Business Application Services Business Solutions for Industry Leadership and Competitive Advantage The changing business and technology landscape demands business and technological agility driving new business imperatives. The enterprise application and technology landscape has to constantly evolve to ensure that the business will continue to innovate for sustained success in the foreseeable future. Business Application Services enables customers create successful and adaptive businesses through a robust business architecture, process transformation and innovation. Our integrated business solutions across the application and technology landscape --transform business processes, maximize and extend value of package applications,

aggregate application capabilities to drive greater collaboration and commerce with customers, integrate and optimize application architecture aligning it to business priorities, enable secure IT operations enforcing consistent risk and compliance mandates and drive a total quality approach for applications and technology solutions. We help drive business innovation through integrating next generation technology into the enterprise IT landscape for our customers. This includes Cloud Computing, Enterprise Mobility, Social Media and Digital Marketing that drives interactive experiences creating increased differentiation and revenues online. Enterprise Applications Business Process transformation solutions across the value chain in the areas of: ERP, Supply Chain Management and Customer Relationship Management across leading packages including SAP and Oracle. We help global organizations implement & run Industry specific best practice processes maximizing and extending business value with reduced TCO and enhanced productivity.
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Enterprise Security Solutions Enhance performance of information security and compliance programs to adapt with agility to constantly evolving and new business & IT risks. Testing Services Evolve a comprehensive testing strategy with innovative solutions, approach and commercial models to drive a total quality assurance. Emerging Technologies We enable organizations in navigating and adopting new paradigms such as Cloud / SaaS, Sustainability, Digital Marketing, and Social Computing delivering faster business results on investments to gain a competitive edge. BPO BPO services The Business Process Outsourcing (BPO) industry has evolved from its earlier phases to now become a strategic partner who can explore innovative and high-value solutions for customers while also handling existing processes. Customers expect BPO vendors to focus on streamlining not just the periphery but core business functions which can optimize business performance and create competitive differentiation in the market place. Cloud Services Every disruptive technology brings new expectations of radical shifts in the IT landscape. In line with this, the cloud computing phenomenon promises new levels of flexibility, faster time to market, resource utilization and cost benefits that enable an organization to have greater control over IT spending. Enterprises can adopt cloud in various hues -- building internal clouds or consuming public cloud services or moving towards a hybrid model. But the challenges involved

vary depending on the size of business. The current trend has seen large enterprises to look at private and hybrid cloud as options rather than public cloud offerings, due to factors like trust, security, data integrity, compliance, service reliability and maturity of external cloud service provider. On the other hand, public cloud adoption has more traction with SMBs. System Integration Services: Design, build, deploy and manage cloud computing environments right from implementing on-premise private cloud for customers to implementing packaged product offerings. Engineering Services: Reengineer ISV packaged product to be delivered as a offering to their end customers, at times hosting the offering in Wipro data centers. Application Development Services: Application development, testing and management services for public cloud platforms like Salesforce.com and MS Dynamic CRM. Infrastructure Services: Aimed at designing, managing and monitoring of public and private cloud environments and virtual desktop, infrastructure advisory and collaboration services. Wipro branded Cloud solutions: Industry specific solutions which will be delivered in the business model to our customers.
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Our solutions and services extend across the various cloud layers - from Business Process as a Service, Software as a Service, and Platform as a Service to Infrastructure as a Service. Wipro Consulting Services At Wipro Consulting, we help companies think ahead. Business today is evolving faster than at any other time in history, and tomorrow there are going to be challenges we can't even imagine today. And opportunities. But to survive and thrive, we must imagine that future. We must anticipate it. Even while we're helping you solve your business challenges today, we're thinking about the future - and how we can take you there. Which is what gives you the competitive edge in what's to come. Eco Energy The environment and sustainability are gaining importance with organizations and they are looking to reduce their energy footprint, recover higher efficiencies from energy deployment and replace conventional with renewable energy sources. Wipro Eco Energy, the renewable energy services arm of Wipro, can be your one-stop shop for all renewable and alternative needs. We provide a range of sustainable and energy efficient solutions such as customized clean energy solutions for institutional clients, energy efficiency (reduce) and renewable energy (replace), and consulting, implementation and managed services. Wipro Eco Energy works on an industrial scale backed by proven and commercially viable technologies with direct customer relevance.

Product & Engineering Services Whether it is a smart phone, a tablet, a home entertainment device, an auto entertainment system, printer, point of sale equipment, a consumer durable, a medical device - each serves a unique requirement and delivers a user experience. The user experience combines entertainment, information, and analytics. Supporting these user experiences are architectures combining applications, GUI, middleware, operating systems, VLSI, electrical, and mechanical elements all synchronized to the end user experience while ensuring green designs, cost optimization, and scalability. Wipro provides insight into these user experiences and an end to end design capability to deliver it.

Mobile Consumer Electronics Automotive Medical devices Product Life Cycle Management
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Enterprise Peripherals Consumer durables

Mobility for the enterprise The mobile workforce is here and growing. It needs to be enabled to be productive anywhere, anytime. Wipro provides insight into the business processes which can be mobilized for different industries, and technology solutions to enable it.

E mobility Cloud solutions for ISV's and enterprises

Infrastructure Management Services The world is witnessing rapid changes with shifts in centers of economic activity, markets, corporate boundaries, and industry structures. In this "Constrained World", it is necessary for all businesses to evolve at present times of severe cut-throat competition. It should administer the twin pressures of delivering improved financial performance and keeping the support infrastructure intact. Luckily, globalization tenders the chance for constant innovation for enterprises. Businesses now have the ability to address new markets, gain access to superior technology like cloud computing and green technologies at the right costs, and leverage a more productive workforce. Business leaders throughout the world are using this to their advantage to build an effective roadmap for superior growth and sustainable success. As a result, in this current business environment, IT and infrastructure management services have undergone a significant change. Increasingly IT ecosystem is focused on

delivering business value, increased efficiency and variabilization of costs. The focus of business nowadays has turned to: "How can we get the maximum out of our existing IT infrastructure? How can we leverage IT infrastructure for business growth and innovation? How can IT infrastructure management help businesses to be more agile and flexible addressing demands such as ramp-up or ramp-down considering the prevailing macroeconomic scenarios?" Mobility Wipro Mobility Solutions Over 5.3 billion people or 77% of the worlds population are now on mobile. This growth has led to an explosion of various devices and networks connecting each other, and creating a borderless world. Consumers and enterprises views on how a mobile device can change their lives or enable them to do business better is rapidly evolving, even as vendors and service providers continuously innovate to fuel this mobile culture. The consequence of this end-user demand has been computerization of IT. With the blurring of lines between the professional and personal, CIOs must rethink their mobility strategy. This could be through creating programs to support corporate
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applications, equipping your employees with smart phones and tablets or putting in place processes to drive customer engagement, supply chain operations and collaboration with partners/suppliers. Wipro's Mobility Solutions helps enterprises make smart decisions in adopting mobility solutions and take advantage of computerization of IT. With domain expertise and understanding of technology gained over 25 years, our team of 1500 Mobility experts works across mobility technologies and industries like Banking & Financial institutions, automotive, telecom and healthcare & medical devices. Our integrated mobility offerings include: Mobile Device Engineering Enterprise Mobility Mobility Testing Wipro leverages its deep cross platform expertise, solution accelerators, FLEX delivery model and CoEs to provide next generation solutions. We have developed re-usable frameworks/components addressing technology and business mobility needs like Mobile SMB banking solutions, Mobile Claims Management, Mobile Trust Framework, Rich Music Experience Framework for Android, Mobility Testing automation tool for iOS, Android etc.

Our strong partnership eco system is across chipset vendors, handset OEM's, Device OS Platform, Enterprise System providers, MEAP (Mobile Enterprise Application Platform) & MCAP (Mobile Consumer Application Platform), and MDM (Mobile Device Management). Alliances include SAP-SUP, Antenna, Google, Kony, Mobile Iron, Zenprise, Eggplant and others.

Global Footprint
Wipro today employs 96,000 people in over 50 countries. We continue to expand our global footprint across the world by providing comprehensive IT solutions and services, including systems integration, information systems outsourcing, package implementation, software application development and maintenance and research and development services to Global 2000 customers utilizing a Global Services Delivery Platform.

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Facility Features
ISO 9001 and ISO 14001 certified manufacturing facility. Fully air-conditioned shop floor in a controlled environment Exclusive production line for servers, desktops and notebooks Automated production lines designed on LEAN Manufacturing practice applying Six Sigma Principles DGS&D certification for manufacturing process and testing infrastructure

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Product engineering and test Labs for continuous innovation in products and processes Green Facility with Water Harvesting, Green Belt, Low energy consumption & negligible environment emissions World-class scalable IT infrastructure facility with connectivity Assembly-line capable of producing 500 machines in a single shift & 1000 machines a day Dedicated inspection set up for the customer pre dispatch inspection

Quality Benchmark
Wipro PC applies the highest level of quality assurance to every product produced. Our focus on quality extends to processes, services and every procured component. The experienced Product Engineering team has a direct link with the R&D centers of each of our technology partners, thus ensuring the latest technology upgrades are in place at any given point of time. This team ensures: Rigorous evaluation and compatibility checks in tune with global standards Ergonomics in line with market segment and requirements Product specifications in line with customer requirements Stringent vendor selection process Certification of products for various operating systems

Quality Certifications
ISO 14001 - Environment Management System ISO 9001 - Manufacturing and Logistics/Warehouse DGS&D - Manufacturing Process and Testing Infrastructure DMI (Desktop Management Interface) Standards - The worlds only desktop standard for PCs Energy Star Certification - Ensures optimum power saving and management capabilities WLP (Windows Logo Program) - Offered by Microsoft to meet a baseline definition of platform features and quality goals Six Sigma DMAIC - Quality through continuous improvement and process orientation

Chapter 3:
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- Achievements and awards - Punch line and Logo

Achievements of Wipro
First Indian IT Service Provider to be awarded Gold-Level Status in Microsoft's Windows Embedded Partner Program. World's largest independent R&D Services Provider. World's 1st PCMM Level 5 software company. World's 1st IT Services Company to use Six Sigma. The first to get the BS15000 certification for its Global Command Centre. Among the top 3 offshore BPO service providers in the world. Only Indian company to be ranked among the 'Top 10 Global Outsourcing Providers' in the IAOP-Fortune Global 100 listings. First company in the world to be certified in BS 7799 (2002) security standards

AWARDS
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2010
Wipro featured in FinTech rankings on Top 25 Enterprise companies published by "Company Of The Year - International", Economictimes.com BPO Industry Award Wipro's Identity and Access Management (IDAM) Solution - IDAM-in-a-Rack has the American Banker and Bank Technology News, and IDC Financial Insights.

won the Global Product Excellence Award 2010 in the Identity Management Solution Category

Partner of the Year Award for Systems Integration, Applications and Middleware Ranked 2nd in the Dataquest IDC BPO Satisfaction Survey. Outstanding Partner of the Year Award from Radware . Leadership Award in the Solution Partners Category by RSA, India. Ranked #3 Top BPO Employers, NASSCOM Survey 2009-10. Indus Towers Customer Award for Excellence in Delivery- Wipro was the only IT Bharat Gaurav Award, 2010 for Nagarajan A., VP, Business Operations, Wipro Wipro receives Most Outstanding Alliance Partner of the Year Award in Asia-Pacific

from oracle.

partner to receive an award from Indus. Arabia for excellence in keeping Indian Flag high in other countries. and Japan from HP. This is the third time in the last five years that Wipro Technologies has been recognized by HP Software and Solutions.

Ranked #4 among BPO Exporters, as per the annual NASSCOM Survey 2009-10 Wipro InfoTech is the Indian IT Company of the Year 2009. Springboard Research

chooses Wipro for impressive revenue growth, client acquisitions and push towards Green technologies

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Punch line and logo

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 Chapter 4: - SWOT analysis - Unique competitive advantage

SWOT ANALYSIS
Wipro is a global IT services company. The company provides comprehensive IT solutions and services, including systems integration, information systems outsourcing, package implementation, software application development and maintenance, and research and development services to corporations. The quality standards implemented by the company enhance the brand image of company. However, compliance with new and changing corporate governance and public disclosure requirements adds uncertainty to compliance policies and increases costs of compliance for the company. Strengths Weaknesses Quality standards Higher attrition Strong financial performance Lower valuation Diversified operations Dependence on mature markets
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Opportunities Threats Demand for BPO services Changing laws, regulations and standards Strategic alliances Immigration restrictions Global development centers Consolidation in the end markets Growth of Indian Research and Rupee appreciation Development services Strengths Quality standards The company is committed to pursue the highest quality standards in all aspects of its business. The company is certified by leading organizations for its quality. Wipro was assessed at SEI-CMM Level 5, the highest level of quality certification in January 1999, making it the first IT services provider in the world to achieve this standard. SEI-CMM is widely accepted in the software industry as a standard to measure the maturity and effectiveness of software processes. Wipro Technologies was also assessed at Level 5 for the CMMI V1.2 model in January 2007. In addition, the Six Sigma initiative supports the companys SEI-CMM Level 5 rating, which is an internationally recognized program, focusing on defect reduction and cycle time reduction. Six Sigma program was launched in the company in 1998. Six Sigma represents a quality standard of less than 3.4 defects per million opportunities. The company pioneered the application of LEAN thinking in software services and support transactions. The focus of applying lean is on reorganizing activities from the customers viewpoint, eliminating waste, and a collaborative way of working. The quality standards implemented by the company would enhance the brand image of company. Strong financial performance Wipro recorded a strong financial performance in the recent three years. The company's revenues increased from INR81,352.5 million (approximately $1,802.8 million) in 2005 to INR149,431.3 million (approximately $3,311.4 million) in the fiscal 2007, growing at compounded annual growth rate (CAGR) of 36%.The rise in revenue was due to 39%, 23%, 45%, 34% and 115% increase in revenue from IT services and products, BPO services, India and Asia Pac IT services and products, consumer care and lighting and others business segments, respectively. The company also reported strong profits. The company's operating profit reached INR29,867.8 million (approximately $661.9 million) in the fiscal year 2007 compared to INR17,857.2 million

(approximately $395.7 million) in 2005, growing at a CAGR of 29%. Similarly, the net profit of the company increased to INR29,169 million (approximately $646.4 million)in 2007 from INR15,832.8 million in 2005 (approximately $350.9 million), growing at a CAGR of 36%. In addition, the cash from operating activities also increased in the same period. The cash from operating activities increased from INR19,006 million (approximately $421 million) in 2005 to INR30,162 million (approximately $668 million) in 2007. Strong financial performance increases the investor confidence. Diversified operations Wipro is the second-largest offshore provider in terms of revenue, after Tata Constancy Services (TCS). It has a history of strong revenues and high EPS growth. Wipro has more than 50,000 employees, 23 sales and marketing offices, and more than 40 development centers. The company has 565 customers across the US, Europe, and Japan, more than 140 of which are Global 500 companies. The company provides a comprehensive and integrated suite of IT solutions, ranging from consulting to application development and maintenance. It also takes complete responsibility for project execution and delivery. Apart from these services, the company has presence in diversified industries such as consumer care and lighting. The company provides services to research and development (R&D) function of its clients which differentiates it from its competitors. The
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company is well positioned in the BPO industry. According to industry sources, the companys BPO segment is ranked third in the top 15 BPO companies in India. In many large outsourcing deals, BPO services are an integral part of the total services outsourced. Integrating BPO services into portfolio of service offerings has provided the company with a strong competitive advantage over other IT services providers. Diversified operations reduce the business risk of the company and generate higher revenues.

Weaknesses Higher attrition Wipro is experiencing high staff attrition rate compared to its competitors. Wipro churn level is approximately 16% in 2007, which is higher than that of TCS (10.8%), Satyam (15.7%) and Infosys (13.5%). Recruiting and retaining the best staff is becoming a challenge for Wipro, in the face of aggressive competition. In addition, the company faced a setback when former divisional head Raman Roy left to start his own business. His departure resulted in the attrition of many of his team members. High attrition rate would affect the long term growth prospects of the company. Lower valuation Wipros shares seem to be undervalued over the past few years. The company reported lower price ratios compared to its competitors like Infosys and Tata consultancy services. In fiscal 2007, the company reported price to earnings (P/E), market price to book (P/B), price to cash flows (P/C), and price to sales (P/S) ratios of 27.8, 8, 26.8, and 5.4, while, Infosyss shares traded at P/E, P/B, P/C, and P/S ratios of 33.8, 10.6, 33.3, and 9.3, respectively. Similarly, the shares of Tata Consultancy Services traded at P/E, P/B, P/C, and P/S ratios of 29.2, 13.4, 35.4, and 6.5. Lower valuation of the companys shares affects the investor confidence in the company. Dependence on mature markets The company is dependent on mature markets like the US and the Europe. The companys dependence on mature markets is increasing from 2002 to 2007. The contribution of the US and Europe collectively increased from 63% in 2002 to 74% in 2007. The company is deriving approximately 74% of its revenue from The US and Europe. The company derived 48.7% of its revenues from the US and 24.7% of its revenues from Europe in 2007. According to industry sources, the real GDP growth rate for the US declined from 2.9% in 2006 to 1.9% in 2007. Euro zone is forecast to slow to about 2.5% in 2007 and 2.1% in 2008, while growth in the UK is expected to ease from 3.1% in 2007 to 2.3% in 2008. India accounted for 20.5% and other international operations of the company accounted for 6% of revenues in 2007. High dependence upon mature markets would have a negative impact on the revenue growth of the company. Opportunities Demand for BPO services India has become the favorite destination for outsourcing services. The reasons behind India becoming global outsourcing hub are favorable wage differentials, availability of a large English speaking talent pool, and an investment friendly regulatory environment. As per industry sources, the worldwide spending on ITeS-BPO services is expected to grow at a CAGR of around 10% for the period 2005-2009. The Indian IT-BPO sector (including domestic and export segment) is growing at approximately 28%. IT-BPO exports are expected to reach $60 billion by 2010. According to another research report, worldwide IT outsourcing spend would rise from $193 billion in 2004 to $260 billion by 2009. The
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business process outsourcing market is expected to grow from $111 billion to $172 billion during the same period. Wipro BPO being one of Indias leading offshore BPO providers can capitalize on the increasing demand for BPO services. Strategic alliances The company has formed strategic alliances with major business enterprises in the last few years. Cisco and Wipro formed a strategic alliance in October 2007, to develop and deliver information technology (IT) service solutions to meet customers needs, in fast-growing markets around the world. Wipro Technologies and Oki Electric Industry entered into strategic partnership in the area of design services for the semiconductor market in September 2007. In June 2007, Wipro and EMC Corporation formed a strategic alliance to address customers information infrastructure requirements, while expanding Wipros and EMCs reach in the $60 billion worldwide information infrastructure market. In March 2007, Wipro and Ingres Corporation entered into a strategic alliance to develop open source business solutions on the Ingres platform and undertake joint go-to-market activities worldwide. With Ingres platform as the key technology, Wipro would establish an open source Center of Excellence and practice in its Bangalore facilities. It also entered into a 360 degree strategic alliance with Alinean in December 2007 to develop Total Cost of Ownership-based business value selling solutions for IT vendors and solution providers. The alliance complements Wipros strategy of partnering with leading solution providers to deliver business value to its customers globally. Apart from these companies, Wipro has global alliances with major companies such as HP, IBM, Microsoft, and SAP. Strategic alliances and long term relations with leading players in the industry would enhance product development capabilities of the company. Global development centers Wipro Technologies opened new global development centers in Atlanta and Mexico. In August 2007, the company opened a new global software development center in Atlanta. The company is establishing its new center in Atlanta because of the availability of huge technical talent pool and universities. The new centers would strengthen the companys presence in the US. It would also help the company to recruit skilled personnel and domain experts, who would be important in driving

the business growth plans of the company in the US. In addition, the company can provide localized and closer-to-customer service for its expanding technology services business in the Americas. Wipro has over 12 offices in the US, and the Atlanta center would strengthen the companys growing global delivery capabilities, which include development centers in Brazil, Eastern and Western Europe, China, Mexico and Canada. The company also opened a development center for the first time in Monterrey, Mexico in the following month. The main reason behind choosing Mexico to establish a center is the geographical proximity to Canada, the U.S. and Europe. Latin America is a strong emerging market where many of Wipros clients have operations. The Monterrey facility enables Wipro to service clients in North America, Latin America and Europe. The major investments of the company in terms of development centers would help the company address new business opportunities. Growth of Indian Research and Development services Wipro is one of a few major IT services companies in the world capable of providing an entire range of research and development services from concept to product realization. According to industry sources, Indian research and development services and software products exports are expected to grow from $2.3 billion in 2004 to $ 8 billion by 2008, at a CAGR of 37%. This is higher than the 28% CAGR projected for IT / ITeS Services. Wipros strengths in research and development would allow it to take advantage of a recovery in global research and development spending.
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Threats Changing laws, regulations and standards The company is subject to many laws and regulations, which are continuously evolving. Changing regulations and standards relating to accounting, corporate governance and public disclosure such as the Sarbanes-Oxley Act of 2002, new SEC regulations, NYSE rules, Securities and Exchange Board of India rules and Indian stock market listing regulations, are creating uncertainty for companies. These new and changing regulations may lack specificity and are subject to varying analysis. Their application is evolving over time as new guidance is being provided by regulatory and governing bodies. This could result in continuing uncertainty regarding compliance matters. In addition, this could result in higher costs of compliance as a result of ongoing revisions to such governance standards. In particular, continuing compliance with Section 404 of the Sarbanes-Oxley Act of 2002 and the related regulations regarding required assessment of internal controls over financial reporting requires the commitment of significant financial and managerial resources. Compliance with new and changing corporate governance and public disclosure requirements adds uncertainty to compliance policies and increases costs of compliance. Immigration restrictions The company serves a significant number of clients based in the US. Approximately, 66% of global IT services and products revenue of the company is from the US for the fiscal year 2007.Very often companys projects require a portion of the work to be completed at the clients facilities. However, the ability of the companys employees to serve foreign clients depends on the availability of the visas and work permits. The number of visas to be granted is governed by the US Citizenship and Immigration Services (CIS). CIS is subjected to legislative changes and variations in economic and labor conditions. Earlier, in hostile situations of terrorist attacks, the US increased restrictions pertaining to the immigration.. The US CIS has limited the number of H-1B visas to be granted. Inability to obtain the necessary visas would adversely affect the operations of company. Consolidation in the end markets Wipro provides application software and outsourcing services to clients across various industries like banking and financial services, manufacturing, telecommunications, technology, and retail among others. The company derived approximately 20% of its total revenue from financial services and 37% from telecom and technology in the fiscal year 2006. There has been consolidation in the companys end markets like banking and telecom in the past few years. In the US, a number of large commercial banks, insurance companies and other broad-based financial services firms have merged with other financial institutions to diversify their offerings. In early 2006, Bank of America acquired MBNA Corporation creating the nation's third-biggest bank and it is one of the largest credit card issuer in the country. Consolidation in the US banking industry is expected to continue in the future. Similarly, there have been notable consolidations in the telecom markets, Verizon acquiring MCI, and SBC Communications, after acquiring AT&T and changing its name to AT&T, completed the acquisition of Bellsouth. Consolidation in the end markets result in creation of large companies with greater bargaining power, affecting the margins of the company. Rupee appreciation The appreciation of the Indian rupee against the dollar has been a major cause of worry for Indian exporters in general and IT companies in particular. A stronger rupee would mean Indian goods and services would be less competitive in the main export markets. The Indian rupee has gained more than 10% against US dollar since January 2007. The rupees appreciation has been on account of continued capital inflows into the country and slowdown in the US economy. In November 2007, the rupee rose to 39.2, its highest level in nearly a decade. With Indian economy growing at an average
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rate of 8.6%, the rupee is bound to strengthen further. With exports contributing to over 60% of the Indian IT industry, rupee appreciation is bound to impact revenues of IT companies. In the last few quarters, although Indian IT companies revenues are increasing, profit margins are being affected by the dollar depreciation. The business model of the large Indian IT companies would be put to test under the appreciating rupee environment. The surge in the rupee would depress profits of Wipro and may adversely affect its financial position.

Competitive Advantages.
Wipro Consulting can give you the business analyses you need and follow through with implementation. As part of Wipro, the world's leading provider of integrated business, technology and process solutions, we can deliver a depth of resources that's unsurpassed by other firms. We have the flexibility to deliver solutions quickly and cost-effectively. And our confidence in our ability to think ahead makes us willing to be measured against any business outcomes. Which means that with Wipro Consulting, you get the advantage of future thinking - along with the advantage of being taken the rest of the way. Wipro draws its competitive advantage vis--vis the other Indian IT service providers from five specific differentiators: Technological Excellence: The biggest differentiator for Wipro against its Indian competitors is that Wipro entered IT services through the engineering and route, given its entry into hardware in the 80s and then later to positioning itself as an engineering lab for hire to the IT multinationals that entered India in the 90s. The lab-on-hire business was eventually scaled up and today accounts for one-third of Wipros revenues, making it the worlds largest third party R&D provider.
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Innovative Solutions: Wipro also prides itself as being a centre for innovative excellence and offers its clients customized innovative technological and process solutions. In 2000, Wipro set up an Innovation Initiative with an internal innovation council, which worked like an internal venture capital fund. Today there are 800 people working on such innovative ideas. This approach has helped the company to position itself as an innovator rather than a commodity provider of technological products. Operational Excellence: Over time Wipro has come to stand for operational excellence. The commitment to quality has been a critical part of Wipros product offering and Wiproites say that Six Sigma is big in Wipro across the company, whether it is BPO or IT Services or R&D. The company is very process-oriented and focused on operational excellence. Today, Wipro has built up its reputation and credibility by being a stickler for process excellence and delivering on quality commitments is a key brand benefit. Company Culture of Linking Values to Business Performance: Wipros cultural fit with its clients is also important in the self-selection process. Wipros Company culture is less flashy and less aggressive 5 than some of its Indian rivals. This Culture resonates with Wipros clients in the manufacturing and retail sector who prefer a More laid-back approach at building a relationship. The companys cultural tone has been set right from the top, with Chairman Premji often being quoted as saying that the brand Wipro is all about humility.

Chapter 5: - Analysis of financial statement

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FINANCIAL STATEMENTS OF WIPRO LIMITED

(Rs. million) Name of the Entity Wipro Cyprus Private Limited En think Inc. Wipro Singapore Pte Limited Wipro Holdings (Mauritius) Limited Maximum amount 1,568 42 22 3 Year-end balance 1,568 42 22 3

b) In our opinion, the rate of interest, where applicable and other terms and conditions

on which loans have been granted to companies, firms or other parties listed in the register maintained under Section 301 of the Act are not, prima facie, prejudicial to the interest of the Company.
c) The principal amounts and interest, wherever applicable, are being repaid regularly

in accordance with the agreed contractual terms. Accordingly, paragraphs 4(iii)(d) of the Order are not applicable to the Company.
d) The Company has not taken any loans, secured or unsecured, from companies, firms

or other parties covered in the register maintained under Section 301 of the Act.
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Accordingly, paragraphs 4(iii)(e) to (g) of the Order are not applicable to the Company.
1) In our opinion and according to the information and explanations given to us, there is an

adequate internal control system commensurate with the size of the Company and the nature of its business with regards to purchase of inventories and fixed assets and with regard to sale of goods and services. We have not observed any major weakness in the internal control system during the course of the audit.
2) a)In our opinion and according to the information and explanations given to us, the

particulars of contracts or arrangements referred to in Section 301 of the Act have been entered in the register required to be maintained under that Section.

b)In our opinion, and according to the information and explanations given to us, the transactions made in pursuance of contracts and arrangements referred to in (a) above and exceeding the value of Rs. 5 lakh with any party during the year have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time except for purchases of certain services which are for the Companys specialized requirements and similarly for sale of certain goods and services for the specialized requirements of the buyers and for which suitable alternative sources are not available to obtain comparable quotations. However, on the basis of information and explanations provided, the same appear reasonable. 3) The Company has not accepted any deposits from the public. 4) In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.
5) We have broadly reviewed the books of accounts maintained by the Company pursuant

to the rules prescribed by the Central Government under Section 209(1)(d) of the Act for maintenance of cost records in respect of Vanaspati, Toilet soaps, Lighting products and Mini computers/ Microprocessor based system and Data communication system and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. However, we have not made a detailed examination of the records.
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6) a) According to the information and explanations given to us and on the basis of our

examination of the records of the Company, amounts deducted/accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Employees State Insurance, Income-tax, Sales-tax, Wealth tax, Service tax, Customs duty, Excise duty and other material statutory dues have been generally regularly deposited during the year by the Company with the appropriate authorities. As explained to us, the Company did not have any dues on account of Investor education and Protection Fund. According to the information and explanations given to us, no undisputed amounts payable in respect of Provident Fund, Employees State Insurance, Income-tax, Salestax, Wealth tax, Service tax, Customs duty, Excise duty and other material statutory dues were outstanding as at March 31, 2010 for a period of more than six months from the date they became payable.

There were no dues on account of cess under Section 441A of the Act since the date from which the aforesaid Section comes into force has not yet been notified by the Central Government. b) According to the information and explanations given to us, the following dues of Income tax, Excise duty, Customs duty, Sales tax and Service tax have not been deposited by the Company on account of disputes:

Name of the Statute

Nature of the dues

Amount unpaid * (Rs. million) 857.32 47.49

Period to which the amount relates(Assessment year) 2005-06 1997-98 to 2008-09 Commissioner of Income Tax (Appeals) Assistant commissioner/Appellate/Com missioner/CESTAT (Appeals) Assistant commissioner/ Appellate/Commissioner/ CESTAT (Appeals) Forum where dispute is pending

Income Tax Act, 1961 The Central Excise Act,1944 Customs Act, 1957 Customs Act, 1957 Sales Tax

Income tax Excise duty Customs duty Customs duty Sales tax

557.76

1990-91 to 2008-09

64.30 48.81

1990-91 to 2008-09 1988-89 to 2008-09

High Court/ Supreme Court Assistant Commissioner/

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Act, 1956 Sales Tax Act, 1956 Sales Tax Act, 1956 Finance Act, 1994 Sales tax Sales tax 49.00 1151.04 378.85 1999-00 to 2005-06 1986-87 to 2007-08 2001-02 to 2007-08

Appellate/Commissioner/ CESTAT (Appeals) High Court/ Supreme Court First Appellate/Joint Commissioner Commercial Taxes Assistant Commissioner/ Appellate/ Commissioner/ CESTAT (Appeals)

Service tax

* The amounts paid under protest have been reduced from the amounts demanded in arriving at the aforesaid disclosure.

7) The Company does not have any accumulated losses at the end of the financial year and has not incurred cash losses during the financial year and in the immediately preceding financial year. 8) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of any dues to any financial institution or bank. The Company did not have any outstanding debentures during the year. 9) The Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. 10) In our opinion and according to the explanations given to us, the Company is not a chit fund/nidhi/mutual benefit fund/ society. 11) According to the information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures and other investments.
12)

In our opinion and according to the information and explanations given to us, the

terms and conditions on which the Company has given guarantees for loans taken by others from banks or financial institutions are not prejudicial to the interest of the Company.

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13) In our opinion and according to the information and explanations given to us, the term loans taken by the Company have been applied for the purpose for which they were raised.
14)

According to the information and explanations given to us and on an overall

examination of the balance sheet of the Company, we are of the opinion that the funds raised on short term basis have not been used for long term investment.
15)

The Company has not made any preferential allotment of shares to

companies/firms/parties covered in the register maintained under Section 301 of the Act. 16) The Company did not have any outstanding debentures during the year.
17)

The Company has not raised any money by public issues during the year

18)

We have been informed that a junior level employee of the Company had

embezzled funds amounting to Rs 228 million over a period of three years from November 2006 to December 2009. The Companies internal investigation under the direct supervision of the Companys Audit Committee related to this embezzlement has been completed. DIRECTORS REPORT Financial Performance Key aspects of your Companys consolidated financial performance for Wipro and its group companies and standalone financial results for Wipro Limited for the year
2009-10 are tabulated below:

Consolidated Results 2010 Sales and Other Income Profit before Tax Provision for Tax Minority interest and equity in earnings/ (losses) in affiliates 276,505 55,095 9,163 378 2009 259,616 45,196 6,460 263

Standalone Results 2010 237,973 56,888 7,908 ----2009 210,269 35,479 5,741

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Profit for the year Appropriations Proposed Dividend on equity shares Corporate Tax on distributed dividend Transfer to General Reserve

46,310

38,999

48,980

29,738

8,809 1,283 36,218

5,860 996 32,143

8,809 1,283 38,888

5,860 996 22,882

* Profit for the year in Standalone Result is after Rs 4,534 million (March 2009: Rs (7,454) million) of gains/(losses) relating to translation of foreign currency borrowings and mark to market losses of related cross currency swaps. In the Consolidated Accounts, these are considered as hedges of net investment in overseas operations and are recognized directly in shareholders' funds.

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