Exhibit 19.1

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET

									(Rs. in Million)
							As of December 31,		As of March 31,
	Schedule				2008		2007		2008
SOURCES OF FUNDS
SHAREHOLDERS’ FUNDS
Share capital		1				2,927		2,921		2,923
Shares issuable [Refer Note 19(7)]			540
Shares issuable to controlled trust			(540	)		—		—		—
Share application money pending allotment						17		52		40
Reserves and surplus		2				130,969		114,097		113,991
						133,913		117,070		116,954
LOAN FUNDS
Secured loans		3				2,220		2,273		2,072
Unsecured loans		4				45,358		24,712		42,778
						47,578		26,985		44,850
Minority interest						192		126		116
						181,683		144,181		161,920
APPLICATION OF FUNDS
FIXED ASSETS
Goodwill						50,252		41,315		42,209
Gross block		5				67,548		52,107		56,280
Less: Accumulated depreciation						34,114		26,486		28,067
Net block						33,434		25,621		28,213
Capital work-in-progress and advances						16,227		12,237		13,370
						99,913		79,173		83,792
INVESTMENTS		6				21,895		18,812		16,014
DEFERRED TAX ASSET (NET)						835		575		529
CURRENT ASSETS, LOANS AND ADVANCES
Inventories		7				7,774		6,155		6,664
Sundry debtors		8				49,664		36,163		40,453
Cash and bank balances		9				38,383		16,508		39,270
Loans and advances		10				43,574		29,263		29,618
						139,395		88,089		116,005
LESS: CURRENT LIABILITIES AND PROVISIONS
Liabilities		11				68,708		36,209		39,890
Provisions		12				11,647		6,259		14,530
						80,355		42,468		54,420
NET CURRENT ASSETS						59,040		45,621		61,585
						181,683		144,181		161,920
Notes to Accounts		19

The schedules referred to above form an integral part of the condensed consolidated balance sheet

As per our report attached	For and on behalf of the Board of Directors
for B S R & Co.	Azim Premji	B C Prabhakar	Girish S Paranjpe	Suresh Vaswani
Chartered Accountants	Chairman	Director	Jt CEO, IT Business &	Jt CEO, IT Business &
			Director	Director

Natrajan Ramkrishna	Suresh C Senapaty	Dr. Jagdish N Sheth	V Ramachandran
Partner	Chief Financial Officer	Director	Company Secretary
Membership No. 32815	& Director
Bangalore
January 21, 2009

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED PROFIT AND LOSS ACCOUNT

	(Rs. in Million except share data)
															Year ended
			Quarter ended December 31,						Nine months ended December 31,						March 31,
	Schedule		2008			2007			2008			2007			2008
INCOME
Gross sales and services				66,241			53,137			192,594			143,896			201,451
Less: Excise duty				244			431			878			1,256			1,655
Net sales and services				65,997			52,706			191,716			142,640			199,796
Other income		13		1,212			1,626			2,332			3,561			4,174
				67,209			54,332			194,048			146,201			203,970
EXPENDITURE
Cost of sales and services		14		46,245			37,239			133,964			100,358			140,244
Selling and marketing expenses		15		4,626			3,814			13,954			10,069			14,216
General and administrative expenses		16		4,223			2,908			10,902			7,595			10,750
Interest		17		569			760			1,816			1,221			1,690
				55,663			44,721			160,636			119,243			166,900
PROFIT BEFORE TAXATION				11,546			9,611			33,412			26,958			37,070
Provision for taxation including fringe benefit tax		19(9)		1,605			1,100			4,792			3,150			4,550
Profit before minority interest / share in earnings of associates				9,941			8,511			28,620			23,808			32,520
Minority interest				(16	)		(11	)		(50	)		(8	)		(24	)
Share in earnings of associates				114			40			327			233			333
PROFIT FOR THE PERIOD				10,039			8,540			28,897			24,033			32,829
Appropriations
Interim dividend				—			—			—			2,919			2,919
Proposed dividend				—			—			—			—			5,846
Tax on dividend				—			—			—			496			1,489
TRANSFER TO GENERAL RESERVE				10,039			8,540			28,897			20,618			22,575
EARNINGS PER SHARE — EPS
Equity shares of par value Rs. 2/- each
Basic (in Rs.)				6.90			5.88			19.87			16.56			22.62
Diluted (in Rs.)				6.89			5.86			19.79			16.48			22.51
Number of shares for calculating EPS
Basic				1,455,372,354			1,451,774,660			1,454,448,714			1,451,362,813			1,451,127,719
Diluted				1,457,995,859			1,457,885,557			1,460,096,041			1,458,117,789			1,458,239,060
Notes to Accounts		19

The schedules referred to above form an integral part of the condensed consolidated profit and loss account

As per our report attached	For and on behalf of the Board of Directors
for B S R & Co.	Azim Premji	B C Prabhakar	Girish S Paranjpe	Suresh Vaswani
Chartered Accountants	Chairman	Director	Jt CEO, IT Business &	Jt CEO, IT Business &
			Director	Director

Natrajan Ramkrishna	Suresh C Senapaty	Dr. Jagdish N Sheth	V Ramachandran
Partner	Chief Financial Officer	Director	Company Secretary
Membership No. 32815	& Director
Bangalore
January 21, 2009

CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES
CONSOLIDATED CASH FLOW STATEMENT

	(Rs. in Million)
	Quarter Ended December 31,						Nine months Ended December 31,						Year ended March 31,
	2008			2007			2008			2007			2008
A. Cash flows from operating activities:
Profit before tax		11,546			9,611			33,412			26,958			37,070
Adjustments:
Depreciation and amortization		1,753			1,429			4,993			3,850			5,359
Amortisation of stock compensation		452			303			1,340			875			1,166
Exchange differences — net		410			(1,287	)		2,226			(2,395	)		(595	)
Deferred cancellation losses relating to roll-over hedging		(5,483	)		—			(7,529	)		—			—
Interest on borrowings		567			760			1,816			1,221			1,690
Dividend / interest — net		(1,288	)		(828	)		(3,229	)		(2,265	)		(2,802	)
(Profit) / Loss on sale of investments		(99	)		(46	)		(668	)		(596	)		(771	)
Gain on sale of fixed assets		(10	)		(7	)		(19	)		(172	)		(174	)
Working capital changes:
Trade and other receivable		(2,057	)		(3,501	)		(14,597	)		(8,239	)		(11,885	)
Loans and advances		10			(2,180	)		(3,514	)		(4,003	)		(5,157	)
Inventories		895			(254	)		(1,110	)		(1,109	)		(1,565	)
Trade and other payables		5,262			1,154			16,626			5,090			6,182
Net cash generated from operations		11,958			5,156			29,746			19,215			28,518
Direct taxes paid		(2,413	)		(160	)		(3,372	)		(2,834	)		(5,459	)
Net cash generated by operating activities		9,545			4,996			26,374			16,381			23,059
B. Cash flows from investing activities:
Acquisition of property, fixed assets plant and equipment (including advances)		(3,696	)		(3,062	)		(12,248	)		(9,377	)		(14,226	)
Proceeds from sale of fixed assets		20			69			183			392			479
Purchase of investments		(60,122	)		(80,976	)		(268,762	)		(180,821	)		(231,684	)
Proceeds on sale / from maturities on investments		79,879			86,537			263,876			196,073			250,013
Intercorporate deposit		250			—			—			50			150
Net payment for acquisition of businesses		—			(5,939	)		(1,192	)		(32,327	)		(32,790	)
Dividend / interest income received		1,288			495			3,229			1,787			2,490
Net cash generated by / (used in) investing activities		17,619			(2,876	)		(14,914	)		(24,223	)		(25,568	)
C. Cash flows from financing activities:
Proceeds from exercise of employee stock option		9			337			59			393			541
Share application money pending allotment		17			16			17			52			40
Interest paid on borrowings		(567	)		(760	)		(1,816	)		(1,221	)		(1,690	)
Dividends paid (including distribution tax)		—			(3,417	)		(6,828	)		(12,632	)		(12,632	)
Repayment of borrowings / loans		(18,847	)		(35,883	)		(51,908	)		(55,985	)		(74,970	)
Proceeds of borrowings / loans		10,435			33,563			47,643			73,835			110,641
Proceeds from issuance of shares by subsidiary		—			—			—			55			55
Net cash generated by / (used in) financing activities		(8,953	)		(6,145	)		(12,833	)		4,497			21,985
Net (decrease) / increase in cash and cash equivalents during the period		18,211			(4,025	)		(1,373	)		(3,345	)		19,476
Cash and cash equivalents at the beginning of the period		20,157			20,488			39,270			19,822			19,822
Effect of translation of cash balance		15			46			487			31			(28	)
Cash and cash equivalents at the end of the period		38,383			16,508			38,383			16,508			39,270

As per our report attached	For and on behalf of the Board of Directors
for B S R & Co.	Azim Premji	B C Prabhakar	Girish S Paranjpe	Suresh Vaswani
Chartered Accountants	Chairman	Director	Jt CEO, IT Business &	Jt CEO, IT Business &
			Director	Director

Natrajan Ramkrishna	Suresh C Senapaty	Dr. Jagdish N Sheth	V Ramachandran
Partner	Chief Financial Officer	Director	Company Secretary
Membership No. 32815	& Director
Bangalore January 21, 2009

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

				(Rs. in Million except share data)
	As of December 31,						As of March 31,
	2008			2007			2008
SCHEDULE 1 SHARE CAPITAL
Authorised capital
1,650,000,000 (2007 & 2008: 1,650,000,000) equity shares of Rs. 2 each		3,300			3,300			3,300
25,000,000 (2007 & 2008: 25,000,000) 10.25 % redeemable cumulative preference shares of Rs. 10 each		250			250			250
		3,550			3,550			3,550
Issued, subscribed and paid-up capital
1,463,724,838 ( 2007: 1,460,529,013, 2008: 1,461,453,320) equity shares of Rs. 2 each [Refer Note 19 (2)]		2,927			2,921			2,923
		2,927			2,921			2,923
SCHEDULE 2 RESERVES AND SURPLUS
Capital reserve
Balance brought forward from previous year		1,144			47			47
Addition during the period		—			—			1,097
		1,144			47			1,144
Securities premium account
Balance brought forward from previous year		25,373			24,530			24,530
Add: Exercise of stock options by employees		1,198			562			843
		26,571			25,092			25,373
Translation reserve
Balance brought forward from previous year		(10	)		(247	)		(247	)
Movement during the period		638			(620	)		237
		628			(867	)		(10	)
Restricted stock units reserve [Refer note 19(8)]
Employee stock options outstanding		6,988			5,256			5,023
Less: Deferred employee compensation expense		4,934			3,597			3,206
		2,054			1,659			1,817
General reserve
Balance brought forward from previous year		86,764			67,790			67,790
Additions [Refer note 19 (3) (ii)]		28,804			19,235			18,974
		115,568			87,025			86,764
Hedging reserve [Refer note 19(5)]
Balance brought forward from previous year		(1,097	)		—			—
Movement during the period		(13,899	)		1,141			(1,097	)
Unrealised gain/ (loss) on cash flow hedging derivatives, net		(14,996	)		1,141			(1,097	)
Summary of reserves and surplus
Balance brought forward from previous year		113,991			93,042			93,042
Movement during the period		16,978			21,055			20,949
		130,969			114,097			113,991

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

					(Rs. in Million)
	As of December 31,				As of March 31,
	2008		2007		2008
SCHEDULE 3 SECURED LOANS
Term loans 1,2		370		688		513
Cash credit facilities 1		674		510		535
Finance lease obligation 2		1,176		1,075		1,024
		2,220		2,273		2,072

1	Term loans and cash credit facility are secured by hypothecation of stock-in-trade, book debts, immovable/movable properties and other assets
2	Term loans and finance lease obligation include Rs. Nil (2007 & 2008: Rs. 971 Million) of borrowings of entities acquired during the period.

SCHEDULE 4 UNSECURED LOANS
External commercial borrowings 3	18,884	—	14,070
Borrowing from banks	25,790	24,611	28,368
Loan from financial institutions	597	—	245
Interest free loan from state governments	39	44	41
Others	48	57	54
	45,358	24,712	42,778

³ Borrowing from banks includes Rs. Nil (2007 & 2008: Rs. 4,380 Million) of borrowings of entities acquired during the period.

																					(Rs. in Million)
	GROSS BLOCK									ACCUMULATED DEPRECIATION									NET BLOCK
	As of April				Deductions/			As of December		As of April		Depreciation		Deductions /			As of December		As of December		As of March 31,
PARTICULARS	1, 2008		Additions		adjustments 4			31, 2008		1, 2008		for the period		adjustments 4			31, 2008		31, 2008		2008 6
SCHEDULE 5 FIXED ASSETS
(a) Tangible fixed assets
Land (including leasehold)		2,744		582		(16	)		3,342		8		2		3			13		3,329		2,736
Buildings		10,000		2,400		(239	)		12,639		1,238		216		79			1,533		11,106		8,762
Plant & machinery 5		31,029		4,949		(1,118	)		37,096		20,162		3,714		820			24,696		12,400		10,867
Furniture, fixture and equipments		7,302		1,235		(263	)		8,800		4,368		568		203			5,139		3,661		2,934
Vehicles		2,566		454		143			2,877		1,416		394		(140	)		1,670		1,207		1,150
(b) Intangible fixed assets
Technical know-how		359		1		(24	)		384		345		3		35			383		1		14
Brands, patents, trade marks and rights		2,280		—		(130	)		2,410		530		96		54			680		1,730		1,750
		56,280		9,621		(1,647	)		67,548		28,067		4,993		1,054			34,114		33,434		28,213
Previous year — 31 March 2008		37,287		19,729		736			56,280		18,993		5,359		3,715			28,067		28,213

4	— Adjustments include effect of foreign exchange translation
5	— Plant and machinery includes computers and computer software
6	— Additions include Gross Block of Rs. Nil (2008: Rs. 8,031 Million) and adjustments include Accumulated depreciation of Rs. Nil (2008: Rs. 3,837 Million) in respect of assets of entities acquired during the period.

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

	(Rs. in Million)
	As of December 31,				As of March 31,
	2008		2007		2008
SCHEDULE 6 INVESTMENTS
Investments
Investments long term — unquoted
Investment in associates
Wipro GE Medical Systems Private Limited 7 [Refer note 19(6)]		1,635		1,243		1,343
		1,635		1,243		1,343
Current investments — quoted [Refer note 19(15)]
Investments in Indian money market mutual funds		17,029		17,217		14,317
Current investments — unquoted
Certificates of deposit [Refer note 19(15)]		2,894		—		—
Other investments — unquoted [Refer note 19(15)]		337		352		354
		20,260		17,569		14,671
		21,895		18,812		16,014

⁷ Equity investments in this company carry certain restrictions on transfer of shares that are normally provided for in shareholders’ agreements

SCHEDULE 7 INVENTORIES
Finished goods	3,324	2,198	2,370
Raw materials	3,105	2,777	2,761
Stock in process	778	773	1,078
Stores and spares	567	407	455
	7,774	6,155	6,664

SCHEDULE 8 SUNDRY DEBTORS
(Unsecured)
Debts outstanding for a period exceeding six months
Considered good	4,800	2,347	3,109
Considered doubtful	1,491	1,081	1,096
	6,291	3,428	4,205
Other debts
Considered good	44,864	33,816	37,344
Considered doubtful	442	—	—
	51,597	37,244	41,549
Less: Allowance for doubtful debts	1,933	1,081	1,096
	49,664	36,163	40,453

SCHEDULE 9 CASH AND BANK BALANCES
Balances with bank:
In current account 8	12,116	5,703	10,884
In deposit account	26,041	10,571	28,104
Cash and cheques on hand	226	234	282
[Refer note 19(14)]	38,383	16,508	39,270

⁸ Balance as on December 31, 2008 includes Rs. Nil (2007 Rs. 509 Million & 2008 Rs. Nil) in a restricted designated bank account for payment of deferred compensation to certain employees.

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET

					(Rs. in Million)
	As of December 31,				As of March 31,
	2008		2007		2008
SCHEDULE 10 LOANS AND ADVANCES
(Unsecured, considered good unless otherwise stated)
Advances recoverable in cash or in kind or for value to be received Considered good
— Prepaid expenses		4,412		2,860		2,800
— Advance to suppliers / expenses		1,539		1,235		1,402
— Employee travel & other advances		1,511		1,531		1,503
— Derivative asset		4,404		2,024		938
— Finance lease receivables		2,812		825		648
— Others		3,701		3,331		3,738
		18,379		11,806		11,029
Considered doubtful		158		168		169
		18,537		11,974		11,198
Less: Provision for doubtful advances		158		168		169
		18,379		11,806		11,029
Other deposits		1,527		1,806		1,911
Advance income tax		8,177		5,463		7,116
Inter corporate deposit		500		600		500
Balances with excise and customs		876		601		548
Unbilled revenue		14,115		8,987		8,514
		43,574		29,263		29,618
SCHEDULE 11 LIABILITIES
Acquisition related liabilities		—		223		207
Accrued expenses		24,098		15,171		15,593
Statutory liabilities		3,396		2,267		2,522
Sundry creditors		18,968		12,259		13,082
Unearned revenues		5,935		3,997		4,269
Advances from customers		2,113		1,675		1,642
Derivative liability		14,180		613		2,571
Unclaimed dividends		18		4		4
		68,708		36,209		39,890
SCHEDULE 12 PROVISIONS
Employee retirement benefits		3,185		2,495		2,737
Warranty provision		921		803		941
Provision for tax		7,541		2,961		4,013
Proposed dividend		—		—		5,846
Tax on dividend		—		—		993
		11,647		6,259		14,530

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED PROFIT AND LOSS ACCOUNT

												(Rs. in Million)
												Year ended
	Quarter ended December 31,					Nine months ended December 31,						March 31,
	2008			2007		2008			2007			2008
SCHEDULE 13 OTHER INCOME
Dividend on mutual fund units		746			406		1,939			1,197			1,428
Profit on sale of invetsments		99			46		668			596			771
Interest on debt instruments and others		542			484		1,290			1,130			1,576
Exchange differences — net		186			319		(792	)		(67	)		(221	)
Exchange fluctuations on foreign currency borrowings (net)		(521	)		—		(1,200	)		—			(202	)
Miscellaneous income		160			371		427			705			822
		1,212			1,626		2,332			3,561			4,174
SCHEDULE 14 COST OF SALES AND SERVICES
Employee compensation		23,833			18,657		67,397			51,088			70,655
Raw materials, finished and process stocks (refer Schedule 18)		10,849			9,590		34,463			25,793			36,263
Sub contracting / technical fees / third party application		3,629			2,517		9,509			7,020			10,911
Travel		1,907			1,311		5,167			3,616			5,010
Depreciation		1,633			1,325		4,630			3,561			4,965
Repairs		1,353			1,296		3,596			2,477			2,686
Communication		657			565		1,839			1,430			1,970
Power and fuel		486			412		1,382			1,108			1,532
Outsourced technical services		356			258		1,060			778			1,109
Rent		424			369		1,194			917			1,286
Stores and spares		258			252		756			699			946
Insurance		83			64		271			159			238
Rates and taxes		70			53		218			91			137
Miscellaneous		707			570		2,482			1,621			2,536
		46,245			37,239		133,964			100,358			140,244

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED PROFIT AND LOSS ACCOUNT

										(Rs. in Million)
										Year ended
	Quarter ended December 31,					Nine months ended December 31,				March 31,
	2008		2007			2008		2007		2008
SCHEDULE 15 SELLING AND MARKETING EXPENSES
Employee compensation		2,496		1,832			7,268		4,897		7,045
Advertisement and sales promotion		800		703			2,656		1,683		2,385
Travel		250		227			851		730		1,023
Carriage and freight		232		294			746		855		1,137
Commission on sales		292		150			689		391		585
Rent		121		147			389		359		470
Communication		93		101			275		256		349
Conveyance		37		37			116		103		136
Depreciation		49		85			197		206		245
Repairs to buildings		56		23			99		55		79
Insurance		2		5			17		26		35
Rates and taxes		25		9			42		25		34
Miscellaneous expenses		173		201			609		483		693
		4,626		3,814			13,954		10,069		14,216
SCHEDULE 16 GENERAL AND ADMINISTRATIVE EXPENSES
Employee compensation		1,683		1,426			4,695		3,543		5,026
Travel		395		309			1,144		835		1,198
Legal and professional charges		500		325			1,183		640		905
Repairs and mantainance		173		131			570		395		565
Provision for bad debts		569		(22	)		836		226		289
Staff recruitment		126		212			345		548		704
Manpower outside services		66		64			213		164		223
Depreciation		71		18			166		83		148
Rates and taxes		15		6			35		44		57
Insurance		33		21			90		55		81
Rent		85		19			224		66		124
Auditors’ remuneration Audit fees		5		3			15		10		24
For certification including tax audit		1		—			1		1		2
Out of pocket expenses		—		—			2		1		2
Miscellaneous expenses		501		396			1,383		984		1,402
		4,223		2,908			10,902		7,595		10,750

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES
CONDENSED CONSOLIDATED PROFIT AND LOSS ACCOUNT

												(Rs. in Million)
												Year ended
	Quarter ended December 31,					Nine months ended December 31,						March 31,
	2008		2007			2008			2007			2008
SCHEDULE 17 INTEREST
Cash credit and others		569		760			1,816			1,221			1,690
		569		760			1,816			1,221			1,690
SCHEDULE 18
RAW MATERIALS, FINISHED AND PROCESSED STOCKS
Consumption of raw materials and bought out components :
Opening stocks		3,631		2,714			2,761			1,584			1,584
Add: Stock taken over on acquisition		—		—			—			374			380
Add: Purchases		4,490		4,003			17,884			13,125			17,887
Less: Closing stocks		3,105		2,777			3,105			2,777			2,761
		5,016		3,940			17,540			12,306			17,090
Purchase of finished products for sale		5,425		5,734			17,577			13,622			19,765
(Increase) / Decrease in finished and process stocks :
Opening stock
In process		823		646			1,078			491			491
Finished products		3,687		2,238			2,370			1,777			1,777
Stock taken over on acquisition
In process		—		—			—			8			8
Finished products		—		3			—			560			580
Less: Closing stock
In process		778		773			778			773			1,078
Finished products		3,324		2,198			3,324			2,198			2,370
		408		(84	)		(654	)		(135	)		(592	)
		10,849		9,590			34,463			25,793			36,263

	CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES
	SCHEDULE 19 — NOTES TO ACCOUNTS Company overview
	Wipro Limited (Wipro), together with its subsidiaries and associates (collectively, the Company or the group) is a leading India based provider of IT Services, including Business Process Outsourcing (BPO) services, globally. Further, Wipro has other businesses such as IT Products and Consumer Care and Lighting. Wipro is headquartered in Bangalore, India.
1.	Significant accounting policies
a)	Basis of preparation of financial statements
	The condensed consolidated financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on accrual basis, except for certain financial instruments, which are measured on a fair value basis. GAAP comprises Accounting Standards (AS), issued by the Institute of Chartered Accountants of India (ICAI) and other generally accepted accounting principles in India.
	This interim financial statement has been prepared in accordance with the recognition, measurement and disclosure provisions of AS 25, Interim Financial Reporting issued pursuant to the Companies (Accounting Standards) Rules, 2006 and by the ICAI. These financial statements should be read in conjunction with the consolidated annual financial statements of the Company for the year ended as at March 31, 2008. The accounting policies followed in preparation of the financial statements are consistent with those followed in the preparation of the consolidated Annual financial statements, except the adoption of AS 30, Financial Instruments: Recognition and Measurement. Effective April 1, 2008 the Company adopted AS 30. The adoption of AS 30 along with limited revision to other accounting standards has been described in Note 4 of the notes to accounts.
b)	Principles of consolidation
	The financial statements include the financial statements of Wipro and all its subsidiaries, which are more than 50% owned or controlled.
	The financial statements of the parent company and its majority owned / controlled subsidiaries have been combined on a line by line basis by adding together the book values of all items of assets, liabilities, incomes and expenses after eliminating all inter -company balances / transactions and resulting unrealized gain / loss.
	The financial statements are prepared using uniform accounting policies for similar transactions and other events in similar circumstances.
c)	Use of estimates
	The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities on the date of the financial statements and reported amounts of revenues and expenses during the period reported. Actual results could differ from those estimates.
d)	Goodwill
	Goodwill arising on consolidation / acquisition of assets is not amortised. It is tested for impairment on a periodic basis and written-off if found impaired.
e)	Fixed assets, intangible assets and work-in-progress
	Fixed assets are stated at historical cost less accumulated depreciation.
	Interest on borrowed money allocated to and utilized for qualifying fixed assets, pertaining to the period up to the date of capitalization is capitalized. Assets acquired on direct finance lease are capitalized at the gross value and interest thereon is charged to profit and loss account.

	CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES
	Intangible assets are stated at the consideration paid for acquisition less accumulated amortization.
	Advances paid towards the acquisition of fixed assets outstanding as of each balance sheet date and the cost of fixed assets not ready for use before such date are disclosed under capital work-in-progress. Lease payments under operating lease are recognised as an expense in the profit and loss account.
	Payments for leasehold land are amortized over the period of lease.
f)	Investments
	Long term investments (other than investment in associate) are stated at cost less provision for diminution in the value of such investments. Diminution in value is provided for where the management is of the opinion that the diminution is of other than temporary nature. Short term investments are valued at lower of amortized cost and net realizable value.
	Investment in associate is accounted under the equity method.
g)	Inventories
	Finished goods are valued at cost or net realizable value, whichever is lower. Other inventories are valued at cost less provision for obsolescence. Small value tools and consumables are charged to consumption on purchase. Cost is determined using weighted average method.
h)	Provisions and contingent liabilities
	The Company creates a provision when there is a present obligation as a result of an obligating event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the outflow.
	A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
	The company recognises provision for onerous contracts based on the estimate of excess of unavoidable costs of meeting obligations under the contracts over the expected economic benefits.
i)	Revenue recognition
	Services:
	Revenue from Software development services comprises revenue from time and material and fixed-price contracts. Revenue from time and material contracts is recognised as related services are performed. Revenue from fixed-price, fixed-time frame contracts is generally recognised in accordance with the “Percentage of Completion” method.
	Revenues from BPO services are derived from both time-based and unit-priced contracts. Revenue is recognised as the related services are performed, in accordance with the specific terms of the contract with the customers.
	Revenue from application maintenance services is recognized over the period of the contract.
	Revenue from customer training, support and other services is recognised as the related services are performed.
	Provision for estimated losses, if any, on incomplete contracts are recorded in the period in which such losses become probable based on the current contract estimates.

	CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES
	‘Unbilled revenues’ included in loans and advances represent cost and earnings in excess of billings as at the balance sheet date. ‘Unearned revenues’ included in current liabilities represent billing in excess of revenue recognised.
	Products:
	Revenue from sale of products is recognised, in accordance with the sales contract, on dispatch from the factories/ warehouse of the Company. Revenues from product sales are shown as net of excise duty, sales tax separately charged and applicable discounts.
	Others:
	Agency commission is accrued when shipment of consignment is dispatched by the principal.
	Profit on sale of investments is recorded upon transfer of title by the Company. It is determined as the difference between the sales price and the then carrying amount of the investment.
	Interest is recognised using the time-proportion method, based on rates implicit in the transaction. Dividend income is recognised where the Company’s right to receive dividend is established.
	Export incentives are accounted on accrual basis and include estimated realizable values/ benefits from special import licenses and advance licenses.
	Other income is recognised on accrual basis.
j)	Warranty cost
	The Company accrues the estimated cost of warranties at the time when the revenue is recognised. The accruals are based on the Company’s historical experience of material usage and service delivery costs.
k)	Foreign currency transactions
	The Company is exposed to currency fluctuations on foreign currency transactions. Foreign currency transactions are accounted in the books of accounts at the average rate for the month.
	Transaction:
	The difference between the rate at which foreign currency transactions are accounted and the rate at which they are realized is recognised in the profit and loss account.
	Translation:
	Monetary foreign currency assets and liabilities at period-end are translated at the closing rate. The difference arising from the translation is recognised in the profit and loss account, except for the exchange difference arising on monetary items that qualify as hedging instruments in a cash flow hedge or hedge of a net investment. In such cases the exchange difference is initially recognized in hedging reserve or translation reserve respectively. Such exchange differences are subsequently recognized in the profit and loss account on occurrence of the underlying hedged transaction or on disposal of the investment respectively.
	Integral operations:
	In respect of integral operations, monetary assets and liabilities are translated at the exchange rate prevailing at the date of the balance sheet. Non-monetary items are translated at the historical rate. The items in the profit and loss account are translated at the average exchange rate during the period. The differences arising out of the translation are recognised in the profit and loss account.

	CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES
	Non-integral operations:
	In respect of non-integral operations, assets and liabilities are translated at the exchange rate prevailing at the date of the balance sheet. The items in the profit and loss account are translated at the average exchange rate during the period. The differences arising out of the translation are transferred to translation reserve.
l)	Financial Instruments
	Derivative financial instruments and Hedge accounting:
	The Company is exposed to foreign currency fluctuations on foreign currency assets, liabilities, net investment in a foreign operation and forecasted cash flows denominated in foreign currency. The Company limits the effects of foreign exchange rate fluctuations by following established risk management policies including the use of derivatives. The Company enters into derivative financial instruments, where the counterparty is a bank.
	Effective April 1, 2007, based on the recognition and measurement principles set out in the AS 30, changes in the fair values of derivative financial instruments designated as cash flow hedges were recognized directly in shareholders’ fund and reclassified into the profit and loss account upon the occurrence of the hedged transaction. The company also designated derivative financial instruments as hedges of net investment in non-integral foreign operation. The portion of the changes in fair value of derivative financial instruments that was determined to be an effective hedge was recognised in the shareholders’ fund and would be recognised in the profit and loss account upon sale or disposal of related non-integral foreign operation. Changes in fair value relating to the ineffective portion of the hedges and derivatives not designated as hedges were recognized in the profit and loss account as they arose.
	On April 1, 2008, the Company early adopted AS 30 and the limited revisions to other accounting standards which come into effect upon adoption of AS 30. AS 30 states that particular sections of other accounting standards; AS 4, Contingencies and Events Occurring after Balance sheet Date, to the extent it deals with contingencies, AS 11 (revised 2003), The Effects of Changes in Foreign Exchange Rates, to the extent it deals with the ‘forward exchange contracts’ and AS 13, Accounting for Investments, except to the extent it relates to accounting for investment properties, will stand withdrawn only from the date AS 30 becomes mandatory (April 1, 2011 for the Company).
	Accordingly, the Company continues to comply with the guidance under these accounting standards; AS 4 — relating to Contingencies, AS 11 — relating to forward contracts and AS 13 until AS 30 becomes mandatory.
	The impact of adoption of AS 30 has been described in Note 4 of the notes to accounts.
	Non-Derivative Financial Instruments
	A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial assets of the Company mainly include cash and bank balances, sundry debtors, unbilled revenues, finance lease receivables, employee travel and other advances, other loans and advances and derivative financial instruments with a positive fair value. Financial liabilities of the Company mainly comprise secured and unsecured loans, sundry creditors, accrued expenses and derivative financial instruments with a negative fair value. Financial assets / liabilities are recognized on the balance sheet when the Company becomes a party to the contractual provisions of the instrument. Financial assets are derecognized when all of risks and rewards of the ownership have been transferred. The transfer of risks and rewards is evaluated by comparing the exposure, before and after the transfer, with the variability in the amounts and timing of the net cash flows of the transferred assets

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

Short-term receivables with no stated interest rates are measured at original invoice amount, if the effect of discounting is immaterial. Non-interest-bearing deposits are discounted to their present value.

The Company measures the financial liabilities, except for derivative financial liabilities at amortized cost using the effective interest method. The Company measures the short -term payables with no stated rate of interest at original invoice amount, if the effec t of discounting is immaterial.

m) Depreciation and amortization

Depreciation is provided on straight line method at rates not lower than rates specified in Schedule XIV to the Companies Act, 1956. In some cases, assets are depreciated at the rates which are higher than Schedule XIV rates to reflect the economic life of asset. Management estimates the useful life of various assets as follows:

Nature of asset	Life of asset
Building	30 - 60 years
Plant and machinery	5 - 21 years
Office equipment	3 - 10 years
Vehicles	4 years
Furniture and fixtures	3 - 10 years
Data processing equipment and software	2 - 6 years

Fixed assets individually costing Rs. 5,000/- or less are depreciated at 100%.

Assets under capital lease are amortised over their estimated useful life or the lease term, whichever is lower. Intangible assets are amortized over their estimated useful life. For various brands acquired by the Company, the estimated useful life has been determined ranging between 20 to 25 years based on expected life, performance, market share, niche focus and longevity of the brand. Accordingly, such intangible assets are being amortised over the determined useful life.

n)	Impairment of assets
	Financial assets:
	The Company assesses at each balance sheet date whether there is any objective evidence that a financial asset or group of financial assets is impaired. If any such indication exists, the Company estimates the amount of impairment loss. The amount of loss for short-term receivables is measured as the difference between the assets carrying amount and undiscounted amount of future cash flows. Reduction, if any, is recognized in the profit and loss account. If at the balance sheet date there is any indication that if a previously assessed impairment loss no longer exists, the recognised impairment loss is reversed, subject to maximum of initial carrying amount of the short-term receivable.
	Other than financial assets:
	The Company assesses at each balance sheet date whether there is any indication that a non-financial asset including goodwill may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs to is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognised in the profit and loss account. If at the balance sheet date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost. In respect of goodwill the impairment loss will be reversed only when it was caused by specific external events and their effects have been reversed by subsequent external events.

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

o)	Provision for retirement benefits
	Provident fund:
	Employees receive benefits from a provident fund. The employee and employer each make monthly contributions to the plan equal to 12% of the covered employee’s salary. A portion of the contribution is made to the provident fund trust managed by the Company, while the remainder of the contribution is made to the Government’s provident fund.
	Compensated absences:
	The employees of the Company are entitled to compensated absence. The employees can carry -forward a portion of the unutilized accrued compensated absence and utilize it in future periods or receive cash compensation at retirement or termination of employment for the unutilized accrued compensated absence. The Company records an obligation for compensated absences in the period in which the employee renders the services that increase this entitlement. The Company measures the expected cost of compensated absence as the additional amount that the Company expects to pay as a result of the unused entitlement that has accumulated at the balance sheet date.
	Gratuity:
	In accordance with applicable Indian laws, the Company provides for gratuity, a defined b enefit retirement plan (Gratuity Plan) covering certain categories of employees. The Gratuity Plan provides a lump sum payment to vested employees, at retirement or termination of employment, an amount based on the respective employee’s last drawn salary and the years of employment with the Company. Liability with regard to gratuity plan is accrued based on actuarial valuations at the balance sheet date, carried out by an independent actuary. Actuarial gain or loss is recognised immediately in the statement of profit and loss as income or expense. The Company has an employees’ gratuity fund managed by the Life Insurance Corporation of India (LIC).
	Superannuation:
	Apart from being covered under the Gratuity Plan described above, the employees of the Company also participate in a defined contribution plan maintained by the Company. This plan is administered by the LIC & ICICI Prudential Insurance Company Limited. The Company makes annual contributions based on a specified percentage of each covered employee’s salary.

p)	Employee stock options
	The Company determines the compensation cost based on the intrinsic value method. The compensation cost is amortised on a straight line basis over the vesting period.

q)	Research and development
	Revenue expenditure on research and development is charged to profit and loss account and capital expenditure is shown as addition to fixed assets.

r)	Income tax & Fringe benefit tax
	Income tax:
	The current charge for income taxes is calculated in accordance with the relevant tax regulations.
	The income tax provision for the interim period is made based on the best estimate of the annual average tax rate expected to be applicable for the full fiscal year.

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

Deferred tax assets and liabilities are recognised for the future tax consequences attr ibutable to timing differences that result between the profit offered for income taxes and the profit as per the financial statements by each entity in the Company.

Deferred taxes are recognised in respect of timing differences which originate during the tax holiday period but reverse after the tax holiday period. For this purpose, reversal of timing difference is determined using FIFO method.

Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. The effect on deferred tax assets and liabilities of a change in tax rates is recognised in the period that includes the enactment/ substantive enactment date.

Deferred tax assets on timing differences are recognised only if there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. However, deferred tax assets on the timing differences when unabsorbed depreciation and losses carried forward exist, are recognised only to the extent that there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

Deferred tax assets are reassessed for the appropriateness of their respective carrying amounts at each balance sheet date.

The Company offsets, on a year on year basis, the current tax assets and liabilities, where it has a legally enforceable right and where it intends to settle such assets and liabilities o n a net basis.

Fringe benefit tax:

The Fringe Benefit Tax (FBT) is accounted for in accordance with the guidance note on accounting for fringe benefits tax issued by the ICAI. The provision for FBT is reported under income taxes.

s)	Earnings per share
	Basic:
	The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period.
	Diluted:
	The number of shares used in computing diluted earnings per share comprises the weighted average shares considered for deriving basic earnings per share, and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares.
	Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. The number of shares and potentially dilutive equity shares are adjusted for any stock splits and bonus shares issued.

t)	Cash flow statement
	Cash flows are reported using the indirect method, whereby net profits before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the Company are segregated.

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

2. The following are the details for 1,463,724,838 (2007: 1,460,529,013, 2008: 1,461,453,320) equity shares as of December 31, 2008.

No. of shares	Description
1,398,430,659	Equity shares / American Depository Receipts (ADRs) (2007 & 2008: 1,398,430,659) have been allotted as fully paid bonus shares / ADRs by capitalization of Securities premium account and Capital redemption reserve
1,325,525	Equity shares (2007 & 2008: 1,325,525) have been allotted as fully paid -up, pursuant to a scheme of amalgamation, without payment being received in cash
3,162,500	Equity shares (2007 & 2008: 3,162,500) representing American Depository Receipts issued during 2000-2001 pursuant to American Depository offering by the Company
59,881,154	Equity shares (2007: 56,685,329 & 2008: 57,609,636) issued pursuant to Employee Stock Option Plan

3. Note on Reserves and Surplus

i)	Restricted stock units reserve includes Deferred Employee Compensation, which represents future charge to profit and loss account and employee stock options outstanding to be treated as securities premium at the time of allotment of shares.
ii)	Additions to General Reserve include:

				(Rs. in Million)
							For the
Particulars	Nine month ended						year ended
	December			December			March 31,
	31, 2008			31, 2007			2008
a) Transfer from profit and loss account		28,897			20,618			22,575
b) Adjustment on account of amalgamation		—			(1,376	)		(3,601	)
c) Transition adjustment on adoption of AS 30		(89	)		—			—
d) Others		(4	)		(7	)		—
		28,804			19,235			18,974

4.	Adoption of AS 30
	In December 2007, the ICAI issued AS 30, Financial Instruments: Recognition and Measurement. Although AS 30 becomes recommendatory in respect of accounting periods commencing on or after April 1, 2009 and mandatory in respect of accounting periods commencing on or after April 1, 2011, in March 2008 the ICAI announced that the earlier adoption of AS 30 is encouraged. AS 30, along with limited revision to other accounting standards has currently not been notified pursuant to Companies (Accounting Standard) Rules, 2006.
	On April 1, 2008, the Company early adopted AS 30 and the limited revisions to other accounting standards which come into effect upon adoption of AS 30.
	AS 30 states that particular sections of other accounting standards; AS 4, Contingencies and Events Occurring after Balance sheet Date, to the extent it deals with contingencies, AS 11 (revised 2003), The Effects of Changes in Foreign Exchange Rates, to the extent it deals with the ‘forward exchange contracts’ and AS 13, Accounting for Investments, except to t he extent it relates to accounting for investment properties, would stand withdrawn only from the date AS 30 becomes mandatory (April 1, 2011 for the Company).
	Accordingly, the Company continues to comply with the guidance under these accounting standards; AS 4 — relating to Contingencies, AS 11 — relating to Forward Contracts and AS 13 until AS 30 becomes mandatory.
	Until March 31, 2008, the Company applied the recognition and measurement principles as set out in AS 30 in accounting for derivatives and hedge accounting. Changes in the fair values of derivative financial instruments designated as cash flow hedges were recognized directly in shareholders’ fund and reclassified into the profit and loss account upon the

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

occurrence of the hedged transaction. The Company also designated derivative financial instruments as hedges of net investments in non-integral foreign operation. The portion of the changes in fair value of derivative financial instruments that was determined to be an effective hedge is recognized in the shareholders’ fund and recognized in the profit and loss account upon sale or disposal of related non-integral foreign operation. Changes in fair value relating to the ineffective portion of the hedges and derivatives not designated as hed ges were recognized in the profit and loss account as they arose.

As the Company was already applying the principles of AS 30 in respect of its accounting for derivative financial instruments in relation to derivative and hedge accounting, the early adoption of AS 30 did not have a material impact on the Company.

As permitted by AS 30 and the consequent limited revisions to other accounting standards; during the quarter and nine month ended December 31, 2008, the Company designated a yen-denominated foreign currency borrowing amounting to JPY 20 billion, along with a floating for floating Cross-Currency Interest Rate Swap (CCIRS), as a hedging instrument to hedge its net investment in a non-integral foreign operation. In addition the company has also designated yen-denominated foreign currency borrowing amounting to JPY 8 billion along with floating for fixed CCIRS as cash flow hedge of the yen- denominated borrowing and also as a hedge of net investment in a non-integral foreign operation

Accordingly, the translation gain/(loss) on the foreign currency borrowings and portion of the changes in fair value of CCIRS which are determined to be effective hedge of net investment in non-integral operation aggregating to Rs.677 million and Rs. 2,493 Million for the quarter and nine month ended December 31, 2008, respectively was recognized in translation reserve / hedging reserve in shareholders’ fund. The amount of loss of Rs. 1,429 Million and Rs. 3,245 Million for the quarter and nine months ended December 31, 2008 recognized in translation reserve would be transferred to profit and loss account upon sale or disposal of non-integral foreign operations and the amount of gain recognized in the hedging reserve of Rs. 752 Million would be transferred to profit and loss upon occur rence of the hedged transaction.

In accordance with AS 11, if the Company had continued to recognize translation losses on foreign currency borrowing in the profit and loss account, the foreign currency borrowing would not have been eligible to be combined with CCIRS for hedge accounting. Consequently the CCIRS also would not have qualified for hedge accounting and changes in fair value of CCIRS would have been recognized in the profit and loss account. As a result profit after tax for the quarter and nine months ended December 31, 2008 would have been lower by Rs. 677 Million and Rs. 2,493 Million respectively.

5.	Derivatives
	As of December 31, 2008, the Company had derivative financial instruments to sell USD 1,837 Million, GBP 60 Million, EUR 6 Million, and JPY 6,518 Million and buy USD 4 Million relating to highly probable forecasted transactions. As of March 31, 2008, the Company had derivative financial instruments to sell USD 2,497 Million, GBP 84 Million, EUR 24 Million and JPY 7,682 Million relating to highly probable forecasted transactions. As of December 31, 2008, the Company has recognised mark -to-market losses of Rs. 15,749 Million (2008: Rs. 1,097 Million) relating to derivative financial instruments that are designated as effective cash flow hedges in the shareholders’ fund.
	In addition to Yen denominated foreign currency borrowing and related CCIRS discussed in Note 4, the Company had derivative financial instruments to sell USD 270 Million and Euro 50 Million designated as hedge of net investment in non-integral foreign operations as of December 31, 2008. For the quarter and nine months ended December 31, 2008, the Company has recognized Mark to market losses of Rs. 1,083 Million and Rs. 3,577 Million respectively (2008: Rs. 495 Million) relating to the above derivative financial instruments in translation reserve in the shareholders’ fund.
	As of December 31, 2008, the Company had undesignated derivative financial instruments to sell USD 375 Million, GBP 76 Million and EUR 49 Million and CHF 12 Million. As of March 31, 2008, the Company had undesignated derivative financial instruments to sell USD

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

414 Million, GBP 58 Million and EUR 39 Million. The Company has recognized mark-to-market gain/ (losses) on such derivative financial instruments through the profit and loss account.

6. The Company has a 49% equity interest in Wipro GE Healthcare Private Limited (Wipro GE), an entity in which General Electric, USA holds the majority equity interest. The shareholders agreement provides specific rights to the two shareholders. Management believes that these specific rights do not confer joint control as defined in AS 27 “Financial Reporting of Interests in Joint Ventures”. Consequently, Wipro GE is not considered as a joint venture and consolidation of financial statements is carried out as per the equity method in terms of AS 23 “Accounting for Investments in Associates in Consolidated Financial statements”.

7. In March 2008, pursuant to the scheme of amalgamation approved by the Honor able High Court of Karnataka and High Court of Judicature at Bombay, the Company has merged mPower Software Services India Private Limited (‘mPower’), mPact Technology Service Private Limited (‘mPact’) and cMango India Private Limited (‘cMango’) with the Company retrospectively from April 1, 2007, the Appointed Date. mPower, mPact and cMango were fully held by Wipro Inc, which in turn is a wholly owned subsidiary of the Company. Pursuant to the scheme of amalgamation, the Company will issue 968,803 fully-paid equity shares with a market value as on April 1, 2007 of Rs. 540 Million as consideration to a controlled trust to be held for the benefit of Wipro Inc.

8. Employee stock option

i)	Employees covered under Stock Option Plans and Restricted Stock Unit (RSU) Op tion Plans are granted an option to purchase shares of the Company at the respective exercise prices, subject to requirements of vesting conditions. These options generally vest over a period of five years from the date of grant. Upon vesting, the employees can acquire one equity share for every option. The maximum contractual term for aforementioned stock option plans is generally 10 years.
ii)	The stock compensation cost is computed under the intrinsic value method and amortised on a straight line basis over the total vesting period of five years. The Company has granted 8,366,676 options under RSU Options Plan and 120,000 options under Stock Options Plan during the nine month ended December 31, 2008.
	For the quarter and nine months ended December 31, 2008 the Company has recorded stock compensation expense of Rs. 452 Million and Rs. 1,340 Million respectively (2007: Rs. 303 Million and Rs. 875 Million respectively).
iii)	The Finance Act, 2007 has introduced Fringe Benefit Tax (FBT) on employee stock options. The difference between the fair value of the underlying share on the date of vesting and the exercise price paid by the employee is subject to FBT. The Company recovers such tax from the employee. During the quarter and nine months ended December 31, 2008 the Company has recognised FBT liability and related recovery of Rs. 43 Million and Rs. 175 Million respectively arising from the exercise of stock options. The Company’s obligation to pay FBT arises only upon the exercise of stock options.

9. Income Tax

Provision for tax has been allocated as follows:

										(Rs. in Million)
	Quarter Ended						Nine Month Ended						Year Ended
	December			December			December			December			March 31,
Particulars	31, 2008			31, 2007			31, 2008			31, 2007			2008
Net current tax		1,630			1,067			4,742			2,939			4,194
Deferred tax		(125	)		(2	)		(234	)		(24	)		62
Fringe benefit tax		100			35			284			235			294
Total income taxes		1,605			1,100			4,792			3,150			4,550

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

10. The Company had received tax demands from the Indian income tax authorities for the financial years ended March 31, 2001, 2002, 2003 and 2004 aggregating to Rs. 11,127 Million (including interest of Rs. 1,503 Million). The tax demand was primarily on account of denial of deduction claimed by the Company under Section 10A of the Income Tax Act 1961, in respect of profits earned by its undertakings in Software Technology Park at Bangalore. The appeals filed by the Company for the above years to the first appellate authority were allowed in favour of the Company, thus deleting substantial portion of the demand raised by the Income tax authorities. On further appeal filed by the income tax authorities, the second appellate authority upheld the claim of the company for years ended March 31, 2001, 2002 and 2003. The Income tax authorities have filed appeal with second appellate authorities for year ended March 31, 2004. In December 2008, the Company received, on similar grounds, additional tax demand of Rs. 5,388 Million (including interest of Rs. 1,615 Million) for the financial year ended March 31, 2005. The Company proposes to file an appeal against the said demand within the time limits permitted under the statute.

Considering the facts and nature of disallowance and the order of the appellate authorities upholding the claims of the Company for earlier years, the Company believes that the final outcome of the above disputes should be in favour of the Company and there should not be any material impact on the financial statements.

11.  The list of subsidiaries is given below :

			Country of
Direct Subsidiaries	Step Subsidiaries		Incorporation
Wipro Inc.			USA
	Wipro Gallagher Solutions Inc		USA
	Enthink Inc.		USA
	Infocrossing Inc		USA
		Infocrossing EAS Inc.,	USA
		Infocrossing Services Inc.	USA
		Infocrossing West Inc. (A)	USA
		Infocrossing Healthcare
		Services, Inc.	USA
		Infocrossing, LLC (A)	USA
		Infocrossing iConnection,
		Inc.	USA
cMango Pte Limited			Singapore
Wipro Japan KK			Japan
Wipro Shanghai
Limited Wipro Trademarks			China
Holding Limited			India
	Cygnus Negri Investments
	Private Limited		India
Wipro Travel Services
Limited			India
Wipro Consumer Care
Limited			India
Wipro Holdings
(Mauritius) Limited			Mauritius
	Wipro Holdings UK Limited		UK
		Wipro Technologies UK
		Limited	UK
		BVPENTEBeteiligun
		gsverwaltung GmbH	Austria
		New Logic Technologies
		GmbH	Austria
		NewLogic Technologies
		SARL	France
		3D Networks FZ -LLC	Dubai

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

			Country of
Direct Subsidiaries	Step Subsidiaries		Incorporation
		3D Networks (UK)
		Limited	UK
Wipro Cyprus Private
Limited			Cyprus
	Wipro Technologies S.A DE
	C.V		Mexico
	Wipro BPO Philippines LTD.
	Inc		Philippines
	Wipro Holdings Hungary
	Korlátolt Felel•sség• Társaság		Hungary
	Wipro Technologies
	Argentina SA		Argentina
	Wipro Information
	Technology Egypt SAE		Egypt
	Wipro Arabia Limited (a)		Dubai
	Wipro Poland Sp Zoo		Poland
	RetailBox BV		Netherlands
		Enabler Informatica SA	Portugal
		Enabler France SAS	France
		Enabler UK Ltd	UK
		Enabler Brasil Ltd	Brazil
		Enabler & Retail Consult
		GmbH	Germany
		Wipro Technologies
		Limited, Russia	Russia
	Wipro Technologies OY
	(formerly Saraware OY)		Finland
	Wipro Infrastructure
	Engineering AB (formerly
	Hydrauto Group AB)		Sweden
		Wipro Infrastructure
		Engineering OY
		(formerly Hydrauto OY
		Ab Pernion)	Finland
		Hydrauto Celka San ve
		Tic	Turkey
	Wipro Technologies SRL		Romania
	Wipro Singapore Pte Limited		Singapore
		Unza Holdings Limited (A)	Singapore
		Wipro Technocentre
		(Singapore) Pte Limited	Singapore
		Wipro (Thailand) Co
		Limited	Thailand
Wipro Australia Pty
Limited			Australia
3D Networks Pte
Limited			Singapore
Planet PSG Pte Limited			Singapore
	Planet PSG SDN BHD		Malaysia

Wipro Chengdu
Limited		China
Spectramind Inc		USA
Wipro Chandrika
Limited (b)		India
WMNETSERV
Limited		Cyprus
	WMNETSERV (UK) Ltd.	UK
	WMNETSERV INC.	USA

All the above subsidiaries are 100% held by the Company except the following:
a)	66.67% held in Wipro Arabia Limited
b)	90% held in Wipro Chandrika Limited

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

(A) Step Subsidiary details of Infocrossing West Inc, Infocrossing LLC, and Unza Holdings Limited are as follows :

			Country of
Step subsidiaries	Step subsidiaries		Incorporation
Infocrossing West Inc.			USA
	Infocrossing Services West
	Inc.		USA
Infocrossing, LLC			USA
	Infocrossing Services
	Southeast Inc.		USA
Unza Company Pte Ltd			Singapore
Unza Indochina Pte Ltd			Singapore
	Unza Vietnam Co., Ltd		Vietnam
Unza Cathay Ltd			Hong Kong
Unza China Ltd			Hong Kong
	Dongguan Unza Consumer
	Products Ltd.		China
PT Unza Vitalis			Indonesia
Unza Thailand Limited			Thailand
			British virgin
Unza Overseas Ltd			islands
Unza Africa Limited			Nigeria
Unza Middle East Ltd			British virgin islands
Unza International
Limited			British virgin islands
Positive Equity Sdn
Bhd			Malaysia
Unza Nusantara Sdn
Bhd			Malaysia
	Unza Holdings Sdn Bhd		Malaysia
	Unza Malaysia Sdn Bhd		Malaysia
		UAA Sdn Bhd	Malaysia
	Manufacturing Services Sdn
	Bhd		Malaysia
		Shubido Pacific Sdn Bhd
		(a)	Malaysia
	Gervas Corporation Sdn Bhd		Malaysia
		Gervas (B) Sdn Bhd	Malaysia
	Formapac Sdn Bhd		Malaysia

All the above subsidiaries are 100% held by the Company except the following:
a)	50.1 % held in Shubido Pacific Sdn Bhd

12. In December 2008, the Company entered into a definitive agreement to acquire 100% shareholding in India based Citi Technology Services Limited (“CTS”) for US $127 million. CTS is an India based captive provider of information technology services and solutions to Citi Group worldwide. CTS has a strong competency in Technology Infrastructure Services (TIS ) and applicatio n develop ment and mai nt enance for car ds, capi tal mar kets and corporate banking. The acquisition will enhance Wipro’s capabilities to address TIS business opportunities in the financial service industry. The acquisition was consummated in January 2009.

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

13.	The segment information for the quarter and nine months ended December 31, 2008, December 31, 2007 and year ended March 31, 2008 is as follows:
	Until March 31, 2008, the Company was reporting Global IT Services & Products (comprising of IT Services & Products and BPO Services segments), India & AsiaPac IT Services & Products, Consumer Care & Lighting and Others.
	In April 2008, the Company re-organized its IT businesses by combining the Global IT Services & Products and the India & AsiaPac IT Services & Products businesses and appointed joint CEOs for the combined IT business. Consequent to the re-organization of the Company, the Company changed its system of internal financial reporting to the board of directors and the chief executive officer wherein the financial results are reported as IT Services and IT Products. Accordingly, the Company identified IT services and IT products as reportable segments. There is no change in the reportable segments for other businesses.
	Segment information in respect of earlier period has been revised to conform to t he presentation as per current reportable segments.
	The segment information for the quarter and nine months ended December 31, 2008 follows :

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

																			Rs. in Million
																			Year ended
	Quarter ended December 31,									Nine months ended December 31,									March 31,
Particulars	2008			2007			Growth %			2008			2007			Growth %			2008
Revenues
IT Services		50,792			38,904			31	%		142,338			105,420			35	%		146,626
IT Products		8,369			6,716			25	%		25,854			18,562			39	%		26,400
Consumer Care and Lighting		5,270			4,347			21	%		15,666			10,399			51	%		15,207
Others		1,919			3,122						7,675			8,419						11,691
Eliminations		(167	)		(64	)					(609	)		(227	)					(349	)
TOTAL		66,183			53,025			25	%		190,924			142,573			34	%		199,575
Profit before Interest and Tax — PBIT
IT Services		10,449			8,316			26	%		29,594			22,649			31	%		31,290
IT Products		431			298			45	%		1,109			852			30	%		1,227
Consumer Care and Lighting		613			525			17	%		1,865			1,270			47	%		1,900
Others		(242	)		296						(38	)		485						770
TOTAL		11,251			9,435			19	%		32,530			25,256			29	%		35,187
Interest and Other Income, Net		295			176						882			1,702						1,883
Profit Before Tax		11,546			9,611			20	%		33,412			26,958			24	%		37,070
Income Tax expense including Fringe Benefit Tax		(1,605	)		(1,100	)					(4,792	)		(3,150	)					(4,550	)
Profit before Share in earnings of associates and minority interest		9,941			8,511			17	%		28,620			23,808			20	%		32,520
Share in earnings of associates		114			40						327			233						333
Minority interest		(16	)		(11	)					(50	)		(8	)					(24	)
PROFIT AFTER TAX		10,039			8,540			18	%		28,897			24,033			20	%		32,829
Operating Margin
IT Services		20.6	%		21.4	%					20.8	%		21.5	%					21.3	%
IT Products		5.1	%		4.4	%					4.3	%		4.6	%					4.6	%
Consumer Care and Lighting		11.6	%		12.1	%					11.9	%		12.2	%					12.5	%
TOTAL		17.0	%		17.8	%					17.0	%		17.7	%					17.6	%
CAPITAL EMPLOYED
IT Services and Products		99,503			87,125						99,503			87,125						93,969
Consumer Care and Lighting		18,848			16,459						18,848			16,459						17,292
Others		63,332			40,597						63,332			40,597						50,659
TOTAL		181,683			144,181						181,683			144,181						161,920
CAPITAL EMPLOYED COMPOSITION
IT Services and Products		55	%		60	%					55	%		60	%					58	%
Consumer Care and Lighting		10	%		11	%					10	%		11	%					11	%
Others		35	%		28	%					35	%		28	%					31	%
TOTAL		100	%		100	%					100	%		100	%					100	%
RETURN ON AVERAGE CAPITAL EMPLOYED
IT Services and Products		44	%		41	%					42	%		44	%					44	%
Consumer Care and Lighting		13	%		13	%					14	%		17	%					19	%
TOTAL		25	%		27	%					25	%		28	%					27	%

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

	Notes to Segment Report
a)	The segment report of Wipro Limited and its consolidated subsid iaries and associates has been prepared in accordance with the AS 17 “Segment Reporting” issued pursuant to the Companies (Accounting Standard) Rules, 2006 and by The Institute of Chartered Accountants of India.
b)	Segment revenue includes the following exchange differences, which are reflected under other income in the financial statements.

							(Rs. in Million)
													Year
	Quarter ended						Nine months ended						ended
	December 31,						December 31,						March 31,
Particulars	2008			2007			2008			2007			2008
IT Services		198			306			(530	)		207			155
IT Products		19			29			(204	)		132			27
Consumer Care & Lighting		—			(6	)		(7	)		(17	)		(21	)
Others		(31	)		(10	)		(51	)		(389	)		(382	)
		186			319			(792	)		(67	)		(221	)

c) Segment wise depreciation is as follows:

					(Rs. in Million)
									Year
	Quarter ended				Nine months ended				ended
	December 31,				December 31,				March 31,
Particulars	2008		2007		2008		2007		2008
IT Services		1,566		1,250		4,430		3,377		4,680
IT Products		7		24		39		64		112
Consumer Care & Lighting		109		83		302		202		292
Others		71		71		222		207		274
		1,753		1,428		4,993		3,850		5,358

d)	Segment PBIT includes Rs. 161 Million (2007: Rs. 371 Million) and Rs. 427 million (2007: Rs. 737 Million) for the quarter and nine months ended December 31, 2008 respectively of certain operating other income which is reflected in other income in the Financial Statements.
e)	PBIT for the quarter and nine months ended December 31, 2008 is after considering restricted stock unit amortization of Rs. 452 Million and Rs. 1,340 Million respectively (2007: Rs. 303 Million and Rs. 875 Million respectively).
f)	Capital employed of segments is net of current liabilities. The net current liability of segments is as follows :-

			(Rs. in Million)
					As of
	As of December 31,				March 31,
Particulars	2008		2007		2008
IT Services and Products		58,671		26,340		30,456
Consumer Care and Lighting		4,421		3,505		3,382
Others		17,263		12,623		20,582
		80,355		42,468		54,420

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

g) The Company has four geographic segments: India, USA, Europe and Rest of the World. Significant portion of the segment assets are in India. Revenue from geographic segments based on domicile of the customers is outlined below:

									(Rs. in Million)
	Quarter ended								Nine months ended								As of March
	December 31								December 31								31,
Particulars	2008		%		2007		%		2008		%		2007		%		2008		%
India		13,335		20		12,454		24		41,247		22		34,556		24		48,847		24
USA		30,752		46		23,505		44		85,052		45		62,929		44		87,439		44
Europe		14,663		23		12,442		23		43,776		23		34,704		25		48,259		24
Rest of the world		7,433		11		4,624		9		20,849		11		10,384		7		15,030		8
		66,183		100		53,025		100		190,924		100		142,573		100		199,575		100

h) For the purpose of reporting, business segments are considered as primary segments and geographic segments are considered as secondary segments.

14. Cash and Bank

a) Details of cash and bank balances as of December 31, 2008 are as follows:

			(Rs. in Million)
	Current		Deposit
Bank Name	Account		Account		Total
HDFC Bank		588		5,752		6,340
State Bank of India		196		5,530		5,726
HSBC Bank		4,744		109		4,852
CITI Bank		1,280		2,538		3,818
IDBI Bank		21		3,259		3,280
ICICI Bank		20		3,160		3,180
Wells Fargo Bank		2,858		—		2,858
Oriental Bank of Commerce		3		1,750		1,753
Standard Chartered Bank		256		1,340		1,596
Bank of Baroda		—		1,200		1,200
ING Vysya Bank		153		500		653
Kotak Mahindra bank		67		300		367
Saudi British Bank		264		—		264
Corporation Bank		—		250		250
Lakshmi Vilas Bank		—		250		250
Deutsche Bank		191		—		191
Rabo Bank		190		—		190
BPI Bank		166		—		166
BNP Paribas Bank		160		—		160
Mizuho Corporate Bank, LTD		123		—		123
Malayan Banking Berhad		62		53		115
Bank of America		110		—		110
Natwest Bank		109		—		109
Nordea Bank		87		—		87
WESTPAC Banking Corporation		55		—		55
NISP Bank		1		50		51
CCF Bank		50		—		50
ICB Bank		47		—		47
Dresdner Bank		38		—		38
Mitsubishi Tokyo UFJ Bank		33		—		33
Bahrain Saudi Bank		31		—		31
JP Morgan Chase Bank		24		—		24
National Commercial Bank		23		—		23

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

			(Rs. in Million)
	Current		Deposit
Bank Name	Account		Account		Total
United Overseas Bank		22		—		22
Maybank		20		—		20
DBS Bank		16		—		16
Bank Austria		15		—		15
Syndicate Bank		14		—		14
ABN Amro Bank		13		—		13
HABC Bank		10		—		10
Wachovia Bank		8		—		8
Regions Bank		8		—		8
BIDV Bank		6		—		6
Axis Bank		6		—		6
BCA Bank		5		—		5
Banco do Brasil		4		—		4
BCP Bank		3		—		3
The Development Bank of Singapore Limited		3		—		3
Guangdong Development Bank		3		—		3
Darlehen Bank		2		—		2
Others		8		—		8
Cash and Cheques on Hand		—		—		226
Total		12,116		26,041		38,383

15. Investments

(a) Investments in Indian money market mutual funds:

	(Rs. in Million)
Fund House	As of December 31, 2008
UTI Mutual Fund		3,633
ICICI Mutual Fund		3,552
Franklin Templeton mutual Fund		2,398
Birla Sunlife Mutual Fund		1,983
HDFC Mutual Fund		1,748
Reliance Mutual Fund		883
Kotak Mutual Fund		534
Tata Mutual Fund		400
HSBC Mutual Fund		300
DSP Blackrock Mutual fund		200
DWS Mutual Fund		200
ING Mutual Fund		171
Principal PNB Mutual Fund		150
Fidelity Mutual Fund		150
LIC Mutual Fund		118
JM Financials Mutual Fund		105
IDFC Mutual Fund		103
Fortis Mutual Fund		101
DBS Mutual Fund		100
AIG Mutual Fund		100
Sundaram BNP Paribas Mutual Fund		50
Lotus Mutual Fund		50
Total		17,029

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF WIPRO LIMITED AND SUBSIDIARIES

(b) Investment in Certificates of Deposit:

	(Rs. in Million)
Particulars	As of December 31, 2008
Punjab National Bank		726
State bank of Patiala		488
ICICI Bank		332
State bank of Indore		296
Federal Bank		244
Oriental Bank of Commerce		242
HSBC Bank		239
State Bank of Bikaner and Jaipur		230
State Bank of India		97
Total		2,894

(c) Other Investments:

	(Rs. in Million)
Particulars	As of December 31, 2008
Non-Convertible Debentures -Citicorp Finance Limited		250
Investment in WEP Peripherals		87
Total		337

16. Corresponding figures for previous periods presented have been regrouped, where necessary, to confirm to the current period classification.