Wipro Ltd Management Discussions.

Industry Overview

Organizations across the globe are undergoing an unprecedented change and transformation in their businesses led by forces such as digital, increasing consumerization of IT, emergence of new platforms such as cloud services and increasing disruptions and competition from new-age companies. Technology access and usage has been largely democratized and mainstreamed. There has been a profound change in how technology is developed, delivered and consumed.

Large multinational enterprises are thus reimagining multiple aspects of their business leveraging digital technologies and are engaging global IT services companies who can deliver high quality service on a global scale and at competitive price points. The market is shifting from traditional services to digital technologies, DevOps and as-a-service models. We believe that the IT Services industry has significant growth potential and the next wave of growth will come from digital technologies. According to the Strategic Review 2019 published by NASSCOM (the "NASSCOM Report"), "Digital" continues to drive growth (more than 30% of growth in FY

2019) and now contributes $33 billion to the overall IT industry in India. Technologies such as industrial automation, robotics, cloud, Internet of things ("IoT"), augmented reality ("AR")/virtual reality ("VR") and blockchain continue to fuel growth. In 2018, there was a 45% increase in as-a-service deals, according to the NASSCOM Report. Cloud platforms are driving growth in managed services for security and data platforms. Digital and automation has moved from point deployments to enterprise-wide adoption.

Global IT service providers offer a range of end–to-end software development, digital services, IT business solutions, research and development services, technology infrastructure services, business process services, consulting and related support functions. According to the NASSCOM Report, IT export revenues from India grew by 8.3% to an estimated $136 billion in fiscal year 2019.

Given that transformation, modernization, innovation and trust are fundamental imperatives for organizations, the opportunities that exist for the industry are significant.

Business Overview

We are a global technology services firm, with employees across 50 countries and serving enterprise clients across 27 industry verticals. We provide our clients with competitive advantages by applying various emerging technologies and ensuring cyber resilience and cyber assurance. We work with our clients not only to enable their digital future, but also to drive hyper efficiencies across their technology infrastructure, applications and core operations, enabling them to achieve cost leadership in their businesses.

We are recognized by our clients for our ability to bring in "an integrated perspective", i.e., our ability to bring together broad and deep technology and domain expertise, our ability to draw learnings and apply insights from one company or sector to another and our ability to provide end-to-end services. Our clients value our consistent excellence in execution and our ability to proactively incorporate relevant innovation.

Going forward, digital enterprises will increasingly require partners, such as Wipro, who are able to bring capabilities that span across consultancy, design, engineering, systems integration and operations to enable them to achieve digital transformation. This transformation can only be effective if delivered in the context of the relevant industry or domain, hence it is critical to us that we provide strong domain expertise along with "Digital." We have invested significantly in building domain expertise and we will continue to strengthen our domain capabilities.

The vision for our business is "to earn our clients trust and maximize value of their businesses by helping them in their journey to ‘re-invent their business and operating models with our ‘Digital first approach and best in class execution."

Our IT Services business provides a range of IT and IT-enabled services which include digital strategy advisory, customer- centric design, technology consulting, IT consulting, custom application design, development, re-engineering and maintenance, systems integration, package implementation, cloud infrastructure services, analytics services, business process services, research and development and hardware and software design to leading enterprises worldwide.

Our IT Products segment provides a range of third-party IT products, which allows us to offer comprehensive IT system integration services. These products include computing, platforms and storage, networking solutions, enterprise information security and software products, including databases and operating systems. We continue to focus on being a system integrator of choice where we provide IT products as a complement to our IT services offerings rather than sell standalone IT products.

Our India SRE segment consists of IT Services offerings to organizations owned or controlled by Government of India and/or any Indian State Governments.

Our Business Strategy

Our strategy is about driving a "Digital first" approach through four foundational pillars i.e. Business Transformation, Modernization, Connected Intelligence and Trust. As part of these, we are prioritizing and disproportionately investing to drive growth in key strategic fields such as digital, cloud, cybersecurity and industrial and engineering services through our "Big Bet" program. For example, our "Big Bet" in each of Digital and Cloud are at the heart of our Business Transformation and Modernization pillars, while our "Big Bet" in Industrial and Engineering services is central to our Connected Intelligence pillar and our "Big Bet" in cybersecurity is central to our Trust pillar. Talent, IPs/ Platforms & Open Innovation are underlying strategies that support the four pillars.

Business Transformation

Business Transformation is about transforming the customer experience at scale and generating new revenue models through a consulting-led approach combining deep domain and technology expertise and strategic design capabilities, which we have scaled through our acquisitions, such as of Designit, Cooper and Syfte.

Our acquisition of Syfte, an Australian design agency leverages human-centered design thinking to solve compelling client challenges & strengthens Wipros design and innovation capabilities. Syfte, which is a part of Digital, expands our reach in Australia and contributes to significant synergy across our integrated digital and design capabilities.

Modernization

Modernization is about taking an integrated "Cloud first" approach across applications, infrastructure and data to modernize the IT landscape, while leveraging HOLMESTM, new ways of working, Application Programming Interface ("API") and Microservices.

We are investing in Cloud Studios across geographies, which provides services such as cloud assessment, cloud migration (Lift and Shift), cloud native, Agile and DevOps, among others.

Wipro HOLMESTM helps enterprises hyper-automate processes and offload specific cognitive tasks to the artificial intelligence ("AI") platform to gain cost efficiencies, agility and enhanced user experience. Wipro HOLMESTM helps businesses adopt a hybrid mode of operation (i.e., pairing automation and human effort), which is achieved through a combination of virtual agents, predictive systems, cognitive process automation, visual computing applications, knowledge virtualization and AI reasoning.

We also offer automation advisory services to help clients in their journey of AI/automation through designing automation roadmaps and setting up Digital Centers of Excellence for automation initiatives. In addition to the Wipro HOLMESTM platform, we are building a collaboration ecosystem for automation, working with partners such as Robotics Process Automation providers (e.g. UiPath), start-ups (e.g., Avaamo, Inc., Arago and GmbH) and established partners (e.g., IBM, Amazon.com, Inc., Google LLC, Microsoft Corporation, SAP SE, Oracle Corporation and ServiceNow, Inc.).

For our API and microservices, we have significantly scaled our consulting talent pool and solutions, which includes our Digital Modernization platform.

Connected Intelligence

Connected Intelligence is about driving outcomes through HOLMESTM, our Data Discovery Platform and use-case based AI solutions and building strong industrial & engineering service capabilities and assets in areas such as Autonomous systems, IoT,5G, etc. We have adopted an "AI First" strategy, which entails acquiring and assimilating data, driving accurate decisions and delivering measurable business outcomes., e.g. Faster Time-to-Market.

We continue to invest in scaling end-to-end capabilities across sensors, gateways, connectivity, platforms, analytics, machine learning and artificial intelligence to drive transformation in a hyper-connected world. We are scaling assets and capabilities in emerging areas such as IoT, 5G, and autonomous systems.

Trust

Trust is about addressing a changing security, privacy & regulatory landscape driven by ubiquitous technology through a consulting led approach to Cyber-security.

We have adopted a consulting-led approach in areas such as enterprise risk management, data privacy and control assurance and we have leveraged cognitive automation, e.g., automated incident detection and response, to drive security.

We are scaling assets such as our cyber defense assurance platform ("CDAP") and working with security ecosystem partners and governing bodies, such as Cloud Security Alliance and Wipro Ventures Portfolio (IntSights, CyCognito, Vectra).

Underlying Strategies that Support the Four Pillars

Talent

Talent strategy is about building a robust ‘re-skill & recruit engine and scaling a global, diverse, local and distributed talent pool. We are scaling p-shaped talent (i.e., people with "double-stemmed" skill sets), product managers, scrum masters and full stack engineers. We are driving re-skill programs for our employees, such as our Digital Academy. We are hiring and training new employees locally through Wipros Ascent program and driving scale in our various geographic segments through employee trainings in areas such as Digital, Analytics, Engineering Services and Cybersecurity.

As of March 31, 2019, we trained over 133,000 professionals in digital technologies. We are expanding our innovation labs, or digital pods, to offer enhanced transformation services to global customers.

IPs & Platforms

IPs and Platforms is about driving differentiation and non- linear revenues. We are scaling IPs, platforms and solutions to drive differentiation in our as-a-service offerings. We are integrating IPs to drive greater impact across domains and technology. Examples of our domain and industry IPs are Netoxygen in our Banking, Financial Services and Insurance business unit and Medicare Advantage in our Health Business Unit, and examples of our technology-based IP include Cyber Defense Platform and Virtuadesk.

Open Innovation

Open Innovation is about tapping the innovation ecosystem to bring the best solutions to our customers through vehicles such as Wipro Ventures, through which we invest in start- ups relevant to enterprises, Partner ecosystem, Academia partnerships , our Horizon Program, which is our organic intrapreneurship initiative, our Crowdsourcing Model (Topcoder), Expert Networks and M&A.

Wipro Ventures: The strategic investment arm of Wipro, Wipro Ventures is a $100 million fund that invests in early to mid-stage enterprise software startups. As of March 31, 2019, Wipro Ventures has active investments in and partnered with 13 startups in the following areas – AI (Avaamo, Inc., Vicarious FPC, Inc.), Business Commerce (Tradeshift, Inc.), Cybersecurity (IntSights Cyber Intelligence Ltd., Vectra Networks, Inc. CyCognito), Data Management (Imanis Data, Inc.), Industrial IoT (Altizon Systems Private Ltd.), Fraud & Risk Mitigation (Emailage Corp.), Testing Automation (Headspin, Inc., Tricentis GmbH) and Cloud Infrastructure (Cloudgenix, Moogsoft).

In addition to direct investments in emerging startups, Wipro Ventures has invested in four enterprise-focused venture funds: TLV Partners, Work- Bench Ventures, Glilot Capital Partners and Boldstart Ventures. During year ended March 31, 2019, one of our portfolio companies, Demisto, was acquired.

Partner Ecosystem: We have a dedicated unit to drive and deepen our partner ecosystem to drive creation of new markets and solutions, expand in key verticals and geographies, drive innovation in our offerings and drive go-to-market outcomes. We have subdivided the partner ecosystem into the following categories:

Strategic Partners: A strategic partnership has multiple technologies and industry use cases aligned to Wipros business covering multiple Wipro service lines. These partnerships are global in nature, with higher business volume and larger business potential with a medium to long term joint business roadmap. Wipro and the strategic partner co-develop focused industry solutions and co-invest in joint go to market initiatives. Strategic partnerships usually have strong solutions portfolio which either complete a value chain by themselves or play a prime technology position in a value chain.

Growth Partners: These are partnerships have focused alignment on a core technology practice and provide extended solutions based on a common technology baseline. These partnerships help Wipro to strengthen industry positioning, usually helping Wipro to achieve leadership position in that technology. Growth partners have higher potential for multi practice engagements through either branching to other services lines of Wipro or leveraging an ecosystem of partnerships.

Niche Partners: Niche partners are highly focused relationship on addressing a specific business need through a unique positioning. Niche partnerships help Wipro to differentiate ourselves in the market through one or more of multiple advantages like cost, unique technology positioning, future proofing and addressing new growth areas.

Academia Partnerships: Collaboration with academic institutions and associations in the United States, Europe, Israel and India in the fields of computer and electrical engineering to promote innovative technology research and capability.

Horizon Program: The goal of the Horizon Program is to drive organic incubation in emerging areas covering products, platforms, solutions and capabilities. In order to achieve this objective, we are investing in key areas such as AI, AR/VR, IoT, cloud computing, software- defined everything, autonomous vehicle, cybersecurity, digital experience, digital marketing and commerce and Industry 4.0. During the year ended March 31, 2019 we funded 16 themes/areas as part of this program.

Crowdsourcing (Topcoder): A community and crowdsourcing platform with of over 1.5 million developers, designers, data scientists, and testers. Topcoder provides focused enterprise offerings around AI/ML and Analytics, Digital Experience (DX), Quality as a Service (QaaS), Workforce Transformation, Talent as a Service (TaaS), and Hybrid (Certified) Communities. We are also using the Topcoder Hybrid Crowd Platform to scale and engage ‘in-house talent pools in emerging technologies such as Full Stack, DevOps, AI/ML, Cloud, Analytics & other Digital skills with our internal TopGear hybrid community. It also acts as a structured learning path for accounts providing hands-on experience across 200+ skills. We are creating a pool of Challenge Architects, Topcoder Co-pilots & Reviewers to expand the percentage of work delivered through crowdsourcing.

M&A: Acquisitions are key enablers for us and drive our capability to build industry domain, focus on key strategic areas, strengthen our presence in emerging technology areas, including Digital, and increase market footprint in newer markets. We focus on opportunities where we can further develop our domain expertise, specific skill sets and our global delivery model to maximize service and product enhancements and create higher margins. We also evaluate business units to determine if divestures would maximize our focus on key priorities.

Operating Segment Overview

Our business comprises of the IT Services, IT Products and ISRE segments. The ISRE segment consists of IT services offerings to ISRE Customers. Effective October 1, 2018, we carved out ISRE as a separate segment from our global IT Services business. We made this decision because we changed our strategy for providing services to ISRE Customers. Historically, projects in our ISRE business have been primarily SI projects that have complex deliverables and, compared to our IT Services segment, longer working capital cycles and different downstream processes, including billing and collections. Most ISRE deals come in the form of a tender process, with little room to negotiate the terms and conditions. We have pivoted our ISRE strategy to focus more on consulting and digital engagements and to be selective in bidding for SI projects with long working capital cycle.

Additionally, we provide our IT Services segment revenue and results by industry verticals. Our industry verticals are subject to change and may vary depending on industry trends.

IT Services Offerings

We are a leading provider of IT services to enterprises across the globe. We provide a range of services, which include digital strategy advisory, customer-centric design, technology consulting, IT consulting, custom application design, development, re-engineering and maintenance, systems integration, package implementation, cloud infrastructure services, business process services, cloud, mobility and analytics services, research and development and hardware and software design. Our key service offerings are outlined below

Wipro has been a strategic partner in the transformation of the application landscape of its clients by offering integrated business solutions that span across enterprise applications and digital transformation to security and testing. MAS is comprised of four units: the Enterprise Applications and Modernization ("EAM") unit, the Application Engineering and DevOps ("AED") unit, the Enterprise Architecture unit and the Appirio Cloud Services unit. These units will leverage themes such as AI/ Cognitive Systems, IoT, blockchain and open source to enable smart application technology, or "Smart Applications".MAS focuses on driving application transformation with contextual solutions for our customers from front office to back office by combining consulting, design and development, continuous testing and integration, automation and operational excellence across all industries.

The Engineering Services team at Wipro facilitates 350+ clients across multiple industries / verticals with a platform to innovate and engineer products, platforms and technologies at scale. This is termed as "Engineering NXT" by Wipro.

Over the last 2 decades, I&ES has engineered innovative customer experiences, personalized products and technologies for new markets, integrated next-generation technologies, facilitated faster time to market and ensured global product compliance, all by making use of technologies around connectivity (Wireless technologies), Cloud and Data Platforms, Systems Design, VLSI, next generation Software Development and Testing, EDS, PLM, IoT and Industry 4.0.

IT Services Competition

The market for IT services is competitive and rapidly changing. Our competitors in this market include global consulting firms and IT services companies as well as local and niche services providers.

The following factors differentiate us from our competition:

1. The comprehensive and integrated suite of IT solutions, including digital strategy advisory, customer-centric design, technology consulting, IT consulting, custom application design, development, re-engineering and maintenance, systems integration, package implementation, cloud infrastructure services, mobility and analytics services, business process services, research and development and hardware and software design.

2. Wipro Digitals integrated propositions in customer mapping and interaction, seamless integration and data science and insight differentiate its approach with customer journey engineering.

3. Our organizational culture of innovation and our early start in deploying cutting edge platforms and technologies that drive hyper-automation and achieve industrialization of service delivery, such as Wipro HOLMESTM.

4. Our investments in developing IP across products, platforms, frameworks, solutions, components, accelerators, tools and apps that enable us to provide standardized solutions to our customers and obtain enormous time-to-market advantage.

5. Our decades of experience in serving in the IT business, proven track record of delivery excellence and satisfied customers who recommend our services to other corporations.

6. Our ability to provide an entire range of research and development services from concept to product realization.

7. Our global delivery model, that leverages our global, regional and local near-shore development centers and collaborative technologies to help us better serve our clients in this modern technology era.

8. Our ability to access, attract and retain highly skilled personnel across key markets.

9. Our emphasis on engaging the culture of our new age acquisitions and integrating these technologies with our executional experience and service offerings to maximize synergies for our clients.

10. Our ability to offer opportunities to work with cutting edge technologies and focus on training is a critical differentiator to the quality of our manpower.

11. The Wipro brand that is recognized globally for its comprehensive portfolio of services, a practitioners approach to delivering innovation and an organization-wide commitment to sustainability.

12. Our commitment to the highest levels of corporate governance.

IT Products

In order to offer comprehensive IT system integration solutions, we use a combination of hardware products (including servers, computing, storage, networking and security), related software products (including databases and operating systems) and integration services. We maintain a presence in the hardware market by providing suitable third-party brands as a part of our solutions in large integrated deals. Our range of third-party IT Products is comprised of Enterprise Platforms, Networking Solutions, Software Products, Data Storage, Contact Center Infrastructure, Enterprise Security, IT Optimization Technologies, Video Solutions and End-User Computing solutions.

IT Products Customers

We provide our offerings to enterprises in all major industries, primarily in the India market, including government, defense, IT and IT-enabled services, telecommunications, manufacturing, utilities, education and financial services sectors. We have a diverse range of customers, none of whom individually account for more than 10% of our overall IT Products segment revenues.

IT Products Competition

Our competitors in the IT Products market include global system integrators as well as local and niche services providers operating in specific geographies like India. One of the major challenges we encounter is margin pressure due to competitive pricing. Achieving mindshare and market share in a crowded market place requires differentiated strategies on pricing, branding, delivery and products design. In the system integration market, we believe we are favorably positioned based on our brand, quality leadership, expertise in target markets and our ability to create customer loyalty by delivering value to our customers. The following factors differentiate us from our competition:

1. Our decades of experience in serving in the IT business, proven track record of delivery excellence and satisfied customers who recommend our services to other corporations.

2. Our deep understanding of the market especially in the India

3. Our trusted ability to provide impartial advice on selection of products.

4. The Wipro brand that is recognized for serving the Indian market of over seventy years.

5. Our commitment to environmental sustainability as well as deep engagement with communities.

India State Run Enterprise (ISRE)

The ISRE segment consists of IT Services offerings to Departments or Ministries of the GoI or the Indian State Governments, as well as to corporate entities where more than 51% of the paid-up capital is held by the GoI or any Indian State Government, either individually or jointly (i.e., a Public Sector Undertaking). In certain cases, corporate entities which are held by the Central / State Government (more than 51%), in turn hold more than 51% stake of paid-up capital in other entities (i.e., a controlling stake), such other entities are also classified as an ISRE.

We will be using our strong domain practice in areas like taxation and e-governance, oil and gas and utilities, along with our strong partner system to work with large companies in the government sector. In the BFSI sector, we aim to replicate our successes in areas such as core banking transformation, and consulting.

ISRE Customers

We have customers across the GoI, Indian State Governments and in industry segments such as BFSI and ENU in the form of corporate entities where more than 51% of the paid-up capital is held by the government.

ISRE Competition

In the ISRE sector, our competition comes from both local and global IT services companies, including large global consulting firms. For the GoI segment, several small companies have entered the market as disruptors, with most of these small companies focused on penetration strategy.

The following factors differentiate us from our competition:

1. Our deep technology knowledge and domain expertise specifically in BFSI and ENU

2. Our strong partnership with key alliance partners including hardware and software partners

3. Prior experience in successfully delivering key marquee projects to ISRE customers

Good Governance and Management Practices

Corporate governance

At Wipro, Corporate Governance is more than just adherence to the statutory and regulatory requirements. It is equally about focusing on voluntary practices that underlie the highest levels of transparency and propriety.

Our Corporate Governance philosophy is put into practice at Wipro through the following four functional layers, namely,

Governance by Shareholders
Governance by Board of Directors
Governance by Sub- Committees of Board of Directors Audit, Risk and Compliance Committee
Board Governance, Nomination and
Compensation Committee, which also acts as
CSR Committee
Strategy Committee
Administrative, Shareholders and Investors
Grievance Committee (Stakeholders
Relationship Committee)
Governance by Management Process Risk Management
Code of Business Conduct
Compliance Framework
The Ombuds process

Governance by Management Process

Ensuring regulatory compliance and adherence to standards is of utmost importance to Wipro. Wipro has a compliance framework and the objective of this framework is to deploy appropriate practices and processes to ensure compliance with all applicable laws and regulations, globally and to ensure compliance risks are identified, and adequately mitigated. The Compliance framework includes the Global Statutory Compliance Policy and Certification Process as approved by the Audit Committee and Board of Wipro Limited. Electronic dashboards, self-deceleration checklists on statutory obligations and audits are some of the mechanisms to monitor and manage compliance in Wipro.

Governance by Code of Business Conduct

Wipro has an organization wide Code of Business Conduct which reflects general principles to guide employees in making ethical decisions. The Code outlines fundamental ethical considerations as well as specific considerations that need to be maintained for professional conduct. More details are provided in the Corporate Governance report.

Risk Management

Risk Management at Wipro is an enterprise wide function backed by a qualified team of specialists with deep industry experience who develop frameworks and methodologies for assessing and mitigating risks.

Risk Management Framework

The risk landscape in the current business environment is changing dynamically with the dimensions of Cyber security, Information Security and Business Continuity, Data Privacy and Large Deal Execution figuring prominently in the risk charts of most organizations. To effectively mitigate these risks, we have employed a risk management framework, which helps proactively identify, prioritize and mitigate risks. The framework is based on principles laid out in the four globally recognized standards as below

Major risks Mitigation plan
Information Security and Cyber Security Based on the perceived risks, effective security controls implemented to detect, prevent and remediate threats. Program to continuously monitor the effectiveness of the controls have been implemented to effectively sustain the security controls. Based on the changing threat landscape, focus is on continuous improvement of efficacy of the security controls with adoption of new processes and latest technology solutions.
breaches that could result in systemic failures, loss, disclosure of confidential information.
Intellectual Property violating or misusing our clients intellectual property rights or for breaches of third-party intellectual property rights or confidential information in connection with services to our clients. Elaborate program exists and is enhanced on an ongoing basis, to assess and mitigate the risks on account of intellectual property, both Customer and Wipro owned. The program is crucial and assists in identifying, monitoring, governing and creating awareness across the organization.
Data Privacy regulations (such as General Data Protection Regulation in Europe) relating to personal information dealt with both by and on behalf of Wipro increases the risk of non-compliance. The Data Privacy program has been augmented keeping into consideration privacy regulatory requirements, with specific emphasis to revalidate all existing frameworks, policies and processes that can be leveraged by respective support function and delivery teams, covering all applicable geographies and areas of operations.
Wipro has implemented the Data process/ Data transfer agreements with customers as well as vendors for flow down DTA/DPA to ensure GDPR governance of personal data. We have also strengthened wipro systems to strengthen personal data governance from controller perspective. Also set- up a process to handle subject access requests related to personal data.
Implemented Personal incident management process to ensure speedy governance on personal data related incidents; if any.
Regulatory Compliances covering various federal, state, local and foreign laws relating to various aspects of the business operations are complex and non- compliances can result in substantial fines, sanctions etc. A program on statutory compliance is in place with the objective to track all applicable regulations, obligation arising out of the same and corresponding action items that requires to be adhered to ensure compliance along with necessary workflows enabled. The program is monitored and regularly reviewed to ensure compliance.

 

Functional and Operational risks arising out of various operational processes Appropriate risk and control matrices have been designed for all critical business processes and both design and effectiveness is tested under the SOX & Internal Financial Control Programs and theme based assessments.
Service Delivery risks relating to complex programs providing end-to-end business solutions for our clients. Risk Management framework has been deployed for large value deals to assess solution fitness, credit risks, financial risks, technology risks among other risk factors. Additionally contract compliance programs are in place with regular reviews, early warning systems as well as customer satisfaction surveys to assess the effectiveness of the service delivery and early detection of any risks arising from the service delivery.
Work place environment, Safety and Security Strong Control measures have been put in place to ensure employee health and safety. Awareness is created about various issues and are communicated on regular basis to employees. Wipro maintains Zero Tolerance for violators of code of business conduct. Also employees are provided with an online web portal to log in concerns relating to various subjects including environment and safety in the work place.
Business Continuity risks arising out of global disruptions like natural disasters, IT outages, Cyber, pandemic, terror and unrest, power disruptions etc. which will challenge or impact the availability of People and process, Technology and Infrastructure. Effective implementation of Business Continuity Management System (BCMS) and framework aligned to ISO 22301 across global locations, accounts and service functions. The framework will ensure a robust BCM planning to manage any crisis which could disrupt People and process, Technology and Facility level disruption effectively and efficiently.
Geo political risk arising out of entering into contracts in a new country. An assessment of doing business in a new country is done in order to analyze the feasibility of doing business based on the countrys economic stability, corruption index, investment opportunities, ease of doing business and physical safety.
Risk of Protectionism policies impacting the business Appropriate measures are being taken to provide uninterrupted high quality services to the clients at all geographies. Additionally, localization efforts are being prioritized. More than 64% of USA workforce are local. In Latin America almost all our employees are local.

Grievance Redressal

Wipro is committed to the highest standards of openness, probity and accountability. Having a robust whistle-blower policy that allows employees and other stakeholder to raise concern in confidence is an essential condition for a transparent and ethical company. This ensures a robust mechanism is in place, which allows employees, non- employees, partners, customers, suppliers and other members of public to voice concern in a responsible and effective manner.

Under Ombuds Policy adopted by each of our businesses, all complaints are addressed to Ombuds and investigative findings are reviewed and approved by Chief Ombudsperson who reports into the Compliance Committee. Dedicated email address (ombuds.person@wipro.com) has been created to facilitate receipt of complaints and for ease of reporting. The company has a 24x7 muntilingual hotline where concerns can be communicated through telephone call. All employees and stakeholders can also register their concerns through web-based portal at www.wiproombuds. com. The toll-free numbers provides global languages options. Following an investigation, a decision is made by the appropriate authority on the action to be taken basis the findings of the investigation. In case the complainant is non-responsive for more than 15 days, the concern may be closed without further action.

1,460 complaints were received via the Ombuds process and 1,414 complaints were closed in FY 2019. All cases were investigated and actions taken as deemed appropriate. Based on self- disclosure data, 23.5% of these were reported anonymously. The top categories of complaints were people processes at 38% and workplace concerns and harassment at 22%. The majority of cases (73%) were resolved through engagement of human resources or mediation, or closed since they were unsubstantiated.

Wipro has a policy and framework for employees to report sexual harassment cases at workplace and our process ensures complete anonymity and confidentiality of information. Adequate workshops and awareness programmes against sexual harassment are conducted across the organization. The information on number of complaints is provided at page 126 of the report.

Capitals and Value Creation

In this section we cover Wipros approach to value creation across the five capitals namely Financial, Human, Intellectual, Social & Relationship and Natural.

a. Financial Capital is broadly understood as the pool of funds available to an organization. Financial capital also serves as a medium of exchange that can obtain value through conversion into other forms of capital.

b. Human Capital is broadly peoples competencies, capabilities and experience, being continuously innovative and contribute to the organizations shared goals and values.

c. Intellectual Capital is broadly organizational, knowledge-based intangibles, including intellectual property, such as patents, copyrights, software, rights and licences and ‘organizational capital such as tacit knowledge, systems, procedures and protocols.

d. Social & Relationship Capital is broadly the institutions and the relationships within and between communities, groups of stakeholders and other networks, and the ability to share information to enhance individual and collective well-being such as customers, investors and suppliers.

e. Natural Capital is broadly all renewable and non-renewable environmental resources and processes that provide goods or services that support the past, current or future prosperity of an organization. It includes air, water, land, minerals, forests, biodiversity and ecosystem health.

Manufactured Capital is broadly seen as human-created, production-oriented equipment and tools. For the IT services business, these are the fixed assets like buildings, IT hardware and telecommunication equipment. The deployment of the capital is adequately represented in financial capital and through impacts to natural capital. Hence this report does not cover manufactured capital separately.

Scope of reporting

Natural Capital

India: 58 locations (includes 3 data centers) representing 77% of our workforce. 34 of these locations are owned (includes 3 data centers) and the balance 20 are leased. Overseas: 202 office locations. Most locations are leased and used as marketing/liaison offices.

Aspect Aspect Boundary
Energy India (offices and DCs) –100% coverage – Actuals
Overseas offices – 100% coverage - Estimated
Water & Waste India - 98% coverage - Actuals (Estimated for the balance leased spaces)
Overseas - Not reported
Other capitals
Financial, Human, Intellectual and Social & Relationship Capital Entire organization
i.e. Wipro Limited.

Linkage to Other Reports

Business Responsibility Report, Sustainability Report, Carbon Disclosure Project & United Nation Global Compact (UNGC) Communication On Progress (COP).

Financial Capital

(Figures in million except otherwise stated)

Consolidated results FY 2018 FY 2019 YoY Change
Revenue1 546,359 589,060 7.8%
Cost of revenue (385,575) (413,033) 7.1%
Gross profit 160,784 176,027 9.5%
Selling and marketing expenses (42,349) (44,510) 5.1%
General and administrative expenses (34,141) (35,951) 5.3%
Other Operating Income - 4,344 100.0%
Operating Income 84,294 99,910 18.5%
Finance Expenses (5,830) (7,375) 26.5%
Finance and Other Income 23,999 22,923 (4.5%)
Income Taxes 22,390 25,242 12.7%
Profit attributable to equity holders 80,081 90,031 12.4%
As a Percentage of Revenue
Gross Margin2 29.4% 29.7% 0.2%
Selling and marketing expenses 7.8% 7.6% (0.2%)
General and administrative expenses 6.2% 6.1% (0.1%)
Operating Margin2 15.4% 16.8% 1.4%
Earnings per share-Basic ( र )3 12.64 14.99 18.6%
Earnings per share-Diluted ( र )3 12.62 14.95 18.5%

1. For segment reporting, we have included the impact of exchange rate fluctuations in revenue. Excluding the impact of exchange rate fluctuations, revenue, as reported in our statements of income, is र 544,871 million and र 585,845 million for the years ended March 31, 2018 and 2019 respectively. Further, finance income on deferred consideration earned under multi-year payment terms in certain total outsourcing contracts is included in the revenue of the respective segment and is eliminated under reconciling items.

2. Gross margin and operating margin as a percentage of revenue for year ended March 31, 2019 have been calculated by including Other Operating Income with Revenue.

3. Earnings per share for the year ended March 31, 2018, has been proportionately adjusted for the bonus issue in the ratio of 1:3 as approved by the shareholders on February 22, 2019.

Revenues: Our revenue increased by 7.8%.

The IT Services segment revenue increased by 9.8%. This growth was led by two of our largest industry verticals, BFSI, CBU and was also a result of depreciation of the Indian Rupee against foreign currencies, including the U.S. Dollar, Euro, United Kingdom Sterling Pound and Canadian Dollar. The growth in the BFSI and CBU industry verticals was a result of increasing our differentiated offerings across our geographic and digital capabilities. Growth was partially offset by a decline in revenues from the Health BU, due to uncertainties around regulatory changes relating to the Affordable Care Act. Revenue of IT products segment declined by 31.6%. The decrease in IT Products segment revenue was primarily due to our focus on being a system integrator of choice where we provide IT products as a complement to our IT services offerings rather than sell standalone IT products. Revenue of the ISRE segment declined by 20.1%, which was primarily due to completion of large engagements and cost overruns in existing engagements.

Profitability: In absolute terms, cost of revenues increased by 7.1% primarily because of increase in employee compensation due to the impact of salary increases, increase in headcount during the year, increase in subcontracting/ technical fees and depreciation of the Indian Rupee against foreign currencies, including the U.S. Dollar, Euro, United Kingdom Sterling Pound and Canadian Dollar. This was partially offset by a reduction in the cost of hardware and software and increases in depreciation, amortization and impairment charges, primarily as a result of the sale of our datacenter business, during the fiscal year ended March 31, 2019. As a result of the foregoing factors, our gross profit as a percentage of our total revenue increased by 0.2%.

Selling and Marketing expenses: Our selling and marketing expenses as a percentage of total revenue decreased from 7.8% for the year ended March 31, 2018 to 7.6% for the year ended March 31, 2019. In absolute terms, selling and marketing expenses increased by 5.1% primarily because of salary increases and depreciation of the Indian Rupee against foreign currencies including U.S. Dollar, Euro, United Kingdom Sterling Pound and Canadian Dollar. These increases have been offset by the decrease in travel and marketing and brand building charges in the year ended March 31, 2019 as compared to the year ended March 31, 2018.

General and Administrative expenses: Our general and administrative expenses as a percentage of revenue decreased from 6.2% for the year ended March 31, 2018 to 6.1% for the year ended March 31, 2019. In absolute terms, general and administrative expenses increased by 5.3%, primarily due to charges paid against a one-time settlement of a legal claim against the company included under "Others." This was offset by a decrease in the lifetime expected credit loss, deferred contract cost and travel.

Other Operating income: During the year ended March 31, 2019, we concluded the sale of our hosted datacenter services business, Workday and Cornerstone OnDemand, and reduced our holding in WAISL (formerly known as Wipro Airport IT Services Limited). Net gain from the sale of our hosted datacenter services business, Workday and Cornerstone OnDemand, and reduction in our holdings in WAISL (formerly known as Wipro Airport IT Services Limited), in the total amount of र 4,344 million, has been recorded as "Other operating income."

As a result of the foregoing factors, our operating income increased by 18.5%, from र 84,294 million for the year ended March 31, 2018 to र 99,910 million for the year ended March 31, 2019. As a result of the above, our results from operating activities as a percentage of revenue (operating margin) increased by 1.4% from 15.4% to 16.8%.

Finance expenses: Our finance expenses increased from र 5,830 million for the year ended March 31, 2018 to र 7,375 million for the year ended March 31, 2019. This increase is primarily due to an increase of र 2,165 million in interest expense, which was partially offset by a decrease of र 620 million in exchange loss on foreign currency borrowings and related derivative instruments.

Finance and Other income: Our finance and other income decreased from र 23,999 million for the year ended March 31, 2018 to र 22,923 million for the year ended March 31, 2019. The decrease is due to a reduction in net gains from investments by र 3,283 million during the year ended March 31, 2019 as compared to the year ended March 31, 2018, resulting from a decrease in the average investments held during the year.

Income Taxes: Our income taxes increased by र 2,852 million from र 22,390 million for the year ended March 31, 2018 to र 25,242 million for the year ended March 31, 2019. Please refer to Note 16 of the Notes to Consolidated Financial Statements for further information. Our effective tax rate has narrowly increased from 21.8% for the year ended March 31, 2018 to 21.9% for the year ended March 31, 2019.

Profit: Profit attributable to non-controlling interest has increased from र 3 million for the year ended March 31, 2018 to र 142 million for the year ended March 31, 2019.

As a result of the foregoing factors, our profit attributable to equity holders increased by र 9,950 million or 12.4%, from र 80,081 million for the year ended March 31, 2018 to र 90,031 million for the year ended March 31, 2019.

Performance Highlights – IT Services

(Figures in million except otherwise stated)

IT Services FY 2018 FY 2019 YoY Change
Revenue1 517,716 568,253 9.8%
Gross Profit 157,999 178,056 12.7%
Selling and Marketing expenses (41,874) (44,207) 5.6%
General and administrative expenses (32,966) (35,690) 8.3%
Other Operating Income - 4,344 100.0%
Operating Income2 83,159 102,503 23.3%
As a Percentage of Revenue
Gross Margin3 30.5% 31.1% 0.6%
Selling and marketing expenses 8.1% 7.8% (0.3)%
General and administrative expenses 6.4% 6.3% (0.1)%
Operating Margin3 16.1% 17.9% 1.8%

1. For the purpose of segment reporting, we have included the impact of exchange rate fluctuations amounting to र 1,498 million and र 3,208 million for the years ended March 31, 2018 and 2019 respectively, in revenue. Further, finance income on deferred consideration earned under multi-year payment terms in certain total outsourcing contracts is included in the revenue of the respective segment and is eliminated under reconciling items.

2. Includes Other Operating Income, which is being included to present the effect from the sale of hosted data center business, Workday and Cornerstone OnDemand, in the year ended March 31, 2019.

3. Gross margin and operating margin as a percentage of revenue have been calculated by including Other Operating Income with Segment Revenue.

Client mining – IT Services

Customer Size for IT Services Distribution

Number of clients in year ended March 31,

2018 2019
> $1M 595 571
> $3M 357 339
> $5M 268 262
> $10M 171 172
> $20M 94 96
> $50M 39 41
> $75M 20 22
> $100M 8 10

Revenues: The IT Services segment revenue increased by 9.8%. This growth was led by two of our largest industry verticals, BFSI, CBU, and was also a result of depreciation of the Indian Rupee against foreign currencies, including the U.S. Dollar, Euro, United Kingdom Sterling Pound and Canadian Dollar. The growth in the BFSI and CBU industry verticals was a result of increasing our differentiated offerings across our geographic and digital capabilities. Growth was partially offset by a decline in revenues from the Health BU, due to uncertainties around regulatory changes relating to the Affordable Care Act.

Profitability: Our gross profit as a percentage of our revenue from our IT Services segment increased by 0.6%, primarily because of increase in employee compensation due to the impact of salary increases, increase in headcount during the year, increase in subcontracting/technical fees and depreciation of the Indian Rupee against foreign currencies including U.S. Dollar, Euro, United Kingdom Sterling Pound and Canadian Dollar. This was partially offset by a reduction in the depreciation, amortization and impairment charges primarily as a result of the sale of our datacenter business during the year ended March 31, 2019.

Selling and Marketing expenses: Selling and marketing expenses as a percentage of revenue from our IT Services segment decreased from 8.1% for the year ended March 31, 2018 to 7.8% for the year ended March 31, 2019. In absolute terms, selling and marketing expenses increased by र 2,333 million primarily on account of salary increases and depreciation of the Indian Rupee against foreign currencies, including the U.S. Dollar, Euro, United Kingdom Sterling Pound and Canadian Dollar. These increases have been offset by the decrease in travel and marketing and brand building charges in the year ended March 31, 2019 as compared to the year ended March 31, 2018.

General and Administrative expenses: General and administrative expenses as a percentage of revenue from our IT Services segment decreased from 6.4% for the year ended

March 31, 2018 to 6.3% for the year ended March 31, 2019. In absolute terms, general and administrative expenses increased by र 2,724 million, primarily due to charges paid against a one-time settlement of a legal claim against the company. This was offset by a decrease in the lifetime expected credit loss, deferred contract cost and travel.

Other Operating Income: During the year ended March 31, 2019, we concluded the sale of our hosted datacenter services business, Workday and Cornerstone OnDemand, and reduced our holding in WAISL (formerly known as Wipro Airport IT Services Limited). Net gain from the sale of our hosted datacenter services business, Workday and Cornerstone OnDemand, and reduction in our holdings in WAISL (formerly known as Wipro Airport IT Services Limited), in the total amount of र 4,344 million, has been recorded as "other operating income."

Segment Results: As a result of the above, segment results as a percentage of our revenue from our IT Services segment increased by 1.8%, from 16.1% to 17.9%. In absolute terms, the segment results of our IT Services segment increased by 23.3%.

Performance against guidance: Historically, we have followed a practice of providing constant currency revenue guidance for our largest business segment, namely, IT Services in dollar terms. The guidance is provided at the release of every quarterly earnings when revenue outlook for the succeeding quarter is shared. The following table presents the performance of IT Services Revenue against outlook previously communicated for the eight quarters of FY 2019 and FY 2018. Our revenue performance in all the quarters of FY 2018 and FY 2019 has been within the guidance range.

(Amounts in $ million)

Guided Outlook versus Actuals

Quarter ending Guidance Achievement in guided currency Reported currency revenue
31st Mar 2019 2,047-2,088 2,067.9 2,075.5
31st Dec 2018 2,028-2,068 2,056.8 2,046.5
31st Sep 2018 2,009-2,049 2,059.9 2,041.2
31st Jun 2018 2,015-2,065 2,064.2 2,026.5
31st Mar 2018 2,033-2,073 2,035.4 2,062.0
31st Dec 2017 2,014-2,054 2,031.2 2,013.0
31st Sep 2017 1,962-2,001 1,976.9 2,013.5
31st Jun 2017 1,915-1,955 1,959.6 1,971.7

Business Unit Wise Performance

(Figures in $ millions except otherwise stated)

Business unit Revenue FY 2018 Revenue FY 2019 Growth YoY% in reported currency Growth YoY% in constant currency Margins FY 2018 Margins FY 2019
BFSI 2,196 2,503 14.3% 16.1% 17.0% 19.3%
CBU 1,187 1,276 8.4% 9.8% 16.2% 18.8%
COMM 513 466 (9.2%) (5.4%) 9.6% 13.5%
ENU 1,034 1,040 1.1% 4.0% 11.9% 9.7%
HLS 1,136 1,075 (5.4%) (4.6%) 13.0% 11.5%
MFG 702 666 (4.2%) (2.6%) 15.2% 17.9%
TECH 1,127 1,094 0.8% 1.5% 19.9% 20.8%
Total 7,895 8,120 3.8% 5.4% 16.1% 17.9%

Geography Wise Performance

(Figures in $ millions except otherwise stated)

Geo Revenue Revenue Growth YoY% in Growth YoY% in
FY 2018 FY 2019 reported currency constant currency
Americas 4,307 4,615 8.9% 9.6%
Europe 2,061 2,069 0.4% 2.6%
Rest of the World 1,527 1,436 (6.0%) (2.2%)
Total 7,895 8,120 3.8% 5.4%

The YoY growth rates have been computed by adjusting revenues for the divestment of our hosted data center services business

Performance Highlights - IT Products

Our IT Products segment accounted for 3.3% and 2.1% of our revenue for the years ended March 31, 2018 and 2019, respectively, and 0.4% and (1.0)% of our operating income for each of the years ended March 31, 2018 and 2019, respectively.

(Figures in र million except otherwise stated)

IT Products FY 2018 FY 2019
Revenue1 17,998 12,312
Gross Profit 1,483 (255)
Selling and Marketing expenses (248) (168)
General and administrative expenses (873) (624)
Operating Income 362 (1,047)
As a Percentage of Revenue:
Gross Margin 8.2% (2.1%)
Selling and Marketing expenses 1.4% 1.4%
General and administrative expenses 4.9% 5.1%
Operating Margin 2.0% (8.5%)
Wipro Limited

1. For the purpose of segment reporting, we have included the impact of exchange rate fluctuations amounting to र (12) million and र (2) million for the years ended March 31, 2018 and 2019, respectively in revenue. Further, finance income on deferred consideration earned under multi-year payment terms in certain total outsourcing contracts is included in the revenue of the respective segment and is eliminated under reconciling items.

Revenues: Our revenue from the IT Products segment decreased by 31.6%. The decline was primarily due to our focus on being a system integrator of choice where we provide IT products as a complement to our IT services offerings rather than sell standalone IT products.

Profitability: Our gross profit as a percentage of our IT Products segment revenue decreased by 10.3%, primarily because of cost escalation relating to depreciation of the Indian Rupee against the U.S. Dollar and increase in loss provisions in certain customer contracts.

Selling and Marketing Expenses: Selling and marketing expenses as a percentage of revenue from our IT Products segment has remained flat at 1.4%. In absolute terms, selling and marketing expenses decreased by र 80 million, in line with reduction in revenues.

General and Administrative Expenses: General and administrative expenses as a percentage of revenue from our IT Products segment increased from 4.9% for the year ended March 31, 2018 to 5.1% for the year ended March 31, 2019. In absolute terms, general and administrative expenses decreased by र 249 million primarily on account of decreases in employee compensation and lifetime expected credit loss in our India business.

Segment Results: As a result of the above, in absolute terms, segment results of our IT Products segment recorded a loss of र 1,047 million for the year ended March 31, 2019 as compared to a profit of र 362 million for the year ended March 31, 2018.

Performance Highlights - ISRE

Our ISRE segment accounted for 2.0% and 1.5% of our revenue for the years ended March 31, 2018 and 2019, respectively, 0.5% and (1.8)% of our operating income for each of the years ended March 31, 2018 and 2019, respectively.

(Figures in र million except otherwise stated)

ISRE FY 2018 FY 2019
Revenue1 10,694 8,544
Gross Profit 1,559 (1,382)
Selling and Marketing expenses (379) (294)
General and administrative expenses (726) (153)
Operating Income 454 (1,829)
As a Percentage of Revenue:
Gross Margin 14.6% (16.2%)
Selling and Marketing expenses 3.5% 3.4%
General and administrative expenses 6.8% 1.8%
Operating Margin 4.2% (21.4%)

1. Finance income on deferred consideration earned under multi-year payment terms in certain total outsourcing contracts is included in the revenue of the respective segment and is eliminated under reconciling items.

Revenues: Our revenue from the ISRE segment decreased by 20.1%. This was primarily due to scaling down of large engagements and delay in completion of projects.

Profitability: Our gross profit as a percentage of our ISRE segment revenue decreased by 30.8%, primarily on account of cost overruns in existing engagements.

Selling and Marketing Expenses: Selling and marketing expenses as a percentage of revenue from our ISRE segment remained flat from 3.5% for the year ended March 31, 2018 to 3.4% for the year ended March 31, 2019. In absolute terms, selling and marketing expenses decreased by र 85 million, which is in line with reduction in revenues.

General and Administrative Expenses: General and administrative expenses as a percentage of revenue from our ISRE segment decreased from 6.8% for the year ended March 31, 2018 to 1.8% for the year ended March 31, 2019. In absolute terms, general and administrative expenses decreased by र 573 million. This was primarily on account of reduction in lifetime expected credit loss.

Segment Results: As a result of the above, in absolute terms, segment results of our ISRE segment recorded a loss of र 1,829 million for the year ended March 31, 2019 as compared to a profit of र 454 million for the year ended March 31, 2018.

Resource Allocation Strategy

Cash generated from operations is our primary source of liquidity. We believe that our cash and cash equivalents along with cash generated from operations will be sufficient to meet our working capital requirements as well as repayment obligations with respect to debt and borrowings. Our choices of sources of funding will be driven with the objective of maintaining an optimal capital structure.

We maintain a debt/borrowing level that we have established through consideration of a number of factors including cash flow expectations, cash required for operations and investment plans. We continually monitor our funding requirements, and strategies are executed to maintain sufficient flexibility to access global funding sources, as needed. Please refer to Note 11 of our Notes to the Consolidated Financial Statements for additional details on our borrowings.

As of March 31, 2019, we had cash and cash equivalent and short-term investments of र 379,245 million. Cash and cash equivalent and short-term investments, net of debt, was र 279,778 million.

In addition, we have unutilized credit lines of र 41,955 million. To utilize these lines of credit, we require the consent of the lender and compliance with certain financial covenants. We have historically financed our working capital and capital expenditures through our operating cash flows and through bank debt, as required.

Cash Generated from Operating Activities:

Cash generated by operating activities for the year ended March 31, 2019 increased by र 32,083 million while profit for the year increased by र 10,089 million during the same period. The increase in cash generated by operating activities is primarily due to decreased working capital requirements.

Cash Generated from Investing Activities:

Cash generated from investing activities for the year ended March 31, 2019 was र 50,126 million. We had a net cash inflow of र 26,103 million from sale of hosted data center business. The cash generated from sale of investments (net of purchases) amounted to र 24,340 million. We purchased property, plant and equipment amounting to र 22,781 million which was primarily driven by the growth strategy of the Company.

The Companys cash flow from its operating, investing and financing activities, as reflected in the Consolidated Statement of Cash Flows, is summarized in the table below:

(million)
Net cash provided by/ (used in) : 2018 2019 YOY change
Operating activities 84,233 116,316 32,083
Investing activities 35,578 50,126 14,548
Financing activities (129,978) (49,369) 80,609
Net change in cash and cash equivalents (10,167) 117,073 127,240
Effect of exchange rate changes on cash and cash equivalent 375 526 151
Cash and cash equivalent at the end of the period 40,926 158,525 117,599

Cash used in financing activities:

Cash used in financing activities for the year ended March 31, 2019 was र 49,369 million as against र 129,978 million for the year ended March 31, 2018. This is primarily on account of outflow for an equity share buyback amounting to र 110,312 million in the year ended March, 31 2018 and increased outflow in the year ended March 31, 2019, on account of partial repayment of loans taken for acquisitions. Payment towards the dividend, including dividend distribution tax for the year ended March 31, 2019, amounted to र 5,434 million. Dividend paid in the year ended March 31, 2019 represent interim (and final) dividend declared for the year ended March 31, 2019 amounting to र 1 per share.

Shareholder Returns

We have always strived to enhance shareholder value for our investors. The Companys policy has been to provide regular, stable and consistent distribution of return. There is no change in our philosophy on shareholder return.

Dividend: The cash dividend paid per equity share during the year ended March 31, 2019 was interim dividend of र 1. The Board recommended the adoption of the interim dividend of र 1 per equity share as the final dividend for the year ended March 31, 2019.

Buyback: On April 16, 2019, our Board of Directors approved a proposal to buyback up to 323,076,923 equity shares of the Company for an aggregate amount not exceeding र 105,000 million, being 5.35% of total paid-up equity share capital as at March 31, 2019, at a price of र 325/- (US$ 4.70) per equity share. Subsequently, vide resolution dated June 1, 2019, the shareholders approved the buyback of equity shares through postal ballot/e-voting.

Assessment of Key Risks

Global Economic and Geo Political Risks: We derive approximately 57% of our IT Services revenue from the Americas (including the United States) and 25% of our IT Services revenue from Europe. If the economy in the Americas or Europe continues to be volatile or conditions in the global financial market deteriorate, pricing for our services may become less attractive and our clients located in these geographies may reduce or postpone their technology spending significantly. Reduction in spending on IT services may lower the demand for our services and negatively affect our revenues and profitability. Our clients are concentrated in certain key industries. Any significant decrease in the growth of any one of these industries, or widespread changes in any such industry, may reduce or alter the demand for our services and adversely affect our revenue and profitability.

Taxation Risks: Our profits for the period earned from providing services at client premises outside India are subject to tax in the country where we perform the work. Most of our taxes paid in countries other than India can be applied as a credit against our Indian tax liability to the extent that the same income is subject to taxation in India. Currently, we benefit from certain tax incentives under Indian tax laws. These tax incentives include a tax holiday from payment of Indian corporate income taxes for our businesses operating from specially designated Special Economic Zones ("SEZs"). Changes to these incentives and other exemptions we receive due to government policies can impact our financial performance.

Wage Pressure: Our wage costs in emerging markets have historically been significantly lower than wage costs in the developed markets for comparably skilled professionals, and this has been one of our competitive advantages. However, wage increases in emerging markets may prevent us from sustaining this competitive advantage and may negatively affect our profit margins. We may need to increase the levels of our employee compensation more rapidly than in the past to retain talent. Unless we are able to continue to increase the efficiency and productivity of our employees over the long term, wage increases may reduce our profit margins. Inability to provide adequate wage increase may result in attrition and impact competitiveness.

General Market Risk: Market risk is the risk of loss of future earnings, to fair values or to future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments, foreign currency receivables, payables and loans and borrowings.

Components of Market Risks

Foreign Currency Risk: We operate internationally and a major portion of our business is transacted in several currencies. Consequently, the Company is exposed to foreign exchange risk through receiving payment for sales and services in the United States and elsewhere, and making purchases from overseas suppliers in various foreign currencies. The exchange rate risk primarily arises from foreign exchange revenue, receivables, cash balances, forecasted cash flows, payables and foreign currency loans and borrowings. A significant portion of our revenue is in United States. Dollars, United Kingdom Pound Sterling, Euros, Australian Dollars and Canadian Dollars while a large portion of our costs are in Indian Rupees. The exchange rates between the rupee and these currencies have fluctuated significantly in recent years and may continue to fluctuate in the future. Appreciation of the Indian Rupee against these currencies can adversely affect our results of operations.

We evaluate our exchange rate exposure arising from these transactions and enter into foreign currency derivative instruments to mitigate such exposure. We follow established risk management policies, including the use of derivatives like foreign exchange forward/option contracts to hedge forecasted cash flows denominated in foreign currency.

We have designated certain derivative instruments as cash flow hedges to mitigate the foreign exchange exposure of forecasted highly probable cash flows. We have also designated foreign currency borrowings as hedges against respective net investments in foreign operations.

As of March 31, 2019, a र 1 (Rupees one) increase/decrease in the spot exchange rate of the Indian rupee with the U.S. dollar would result in approximately र 2,002 million decrease/increase in the fair value of foreign currency dollar denominated derivative instruments.

Interest rate risk: Interest rate risk primarily arises from floating rate borrowing, including various revolving and other lines of credit. Our investments are primarily in short-term investments, which do not expose it to significant interest rate risk. To manage our net exposure to interest rate risk relating to borrowings, we may enter into interest rate swap agreements, which allows us to exchange periodic payments based on a notional amount and agreed upon fixed and floating interest rates. Certain borrowings are also transacted at fixed interest rates. If interest rates were to increase by 100 bps from March 31, 2019, additional net annual interest expense on our floating rate borrowing would amount to approximately र 866 million.

Credit Risk: Credit risk arises from the possibility that customers may not be able to settle their obligations as agreed. To manage this, we periodically assess the financial reliability of customers, considering the financial condition, current economic trends, analysis of historical bad debts and ageing of accounts receivable. Individual risk limits are set accordingly. No single customer accounted for more than 10% of the accounts receivable as of March 31, 2018 and 2019. There is no significant concentration of credit risk.

Counterparty Risk: Counterparty risk encompasses issuer risk on marketable securities, settlement risk on derivative and money market contracts and credit risk on cash and time deposits. Issuer risk is minimized by only buying securities in India which are at least AA rated by Indian rating agencies. Settlement and credit risk is reduced by the policy of entering into transactions with counterparties that are usually banks or financial institutions with acceptable credit ratings. Exposure to these risks are closely monitored and maintained within predetermined parameters. There are limits on credit exposure to any financial institution. The limits are regularly assessed and determined based upon credit analysis including financial statements and capital adequacy ratio reviews.

Liquidity Risk: Liquidity risk is defined as the risk that we will not be able to settle or meet our obligations on time or at a reasonable price. Our corporate treasury department is responsible for liquidity and funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Companys net liquidity position through rolling forecasts on the basis of expected cash flows. As of March 31, 2019, our cash and cash equivalents are held with major banks and financial institutions. Our Gross cash and cash equivalent and short-term investments of र 379,245 million

($ 5.5 billion). Cash and cash equivalent and short-term investments, net of debt, was र 279,778 million ($ 4.0 billion).

Risk Management Procedures

We manage market risk through a corporate treasury department, which evaluates and exercises independent control over the entire process of market risk management. Our corporate treasury department recommends risk management objectives and policies, which are approved by senior management and the Audit Committee. The activities of this department include management of cash resources, implementing hedging strategies for foreign currency exposures, borrowing strategies, and ensuring compliance with market risk limits and policies.

Foreign Exchange Risk Management Policy and Results

We evaluate our foreign exchange rate exposure arising from operations and enter into foreign currency derivative instruments to mitigate such exposure. We have a consistent hedging policy, designed to minimize the impact of volatility in foreign exchange fluctuations on the earnings and assets & liabilities.

We evaluate exchange rate exposure arising from transactions and positions and enter into foreign currency derivative instruments to mitigate such exposure. We follow established risk management policies, including the use of derivatives like foreign exchange forward/option/future contracts to hedge forecasted cash flows denominated in foreign currency. As per the policy, the total hedges shall be 45% to 100% of the next four quarters of inflows in addition to select long term contracts which are beyond one year in tenor.

We have designated certain derivative instruments as cash flow hedges to mitigate the impact of foreign exchange exposure on Profit and Loss account and forecasted highly probable cash flows. We have also designated foreign currency borrowings as hedges against respective net investments in foreign operations.

Our Hedge Book as on March 31, 2019 stood at $ 2.6 billion dollars.

Internal Control Systems and their Adequacy

We have presence across multiple countries, and a large number of employees, suppliers and other partners collaborate to provide solutions to our customer needs. Robust internal controls and scalable processes are imperative to manage the global scale of operations.

The Management has laid down internal financial controls to be followed by the Company. We have adopted policies and procedures for ensuring the orderly and efficient conduct of the business, including adherence to the Companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial disclosures.

Key Ratios:

Particulars FY 2018 FY 2019 YoY Change
Revenue in र million (% terms) 546,359 589,060 7.8 % F
IT Services Operating Margin (% terms) 16.1% 17.9% 1.8% F
Net Income Margin (% terms) 14.7% 15.3% 0.6% F
Earnings per share in र (% terms) 12.64 14.99 18.6% F
Price Earning Ratio (times) 16.7 17.0 0.3 F
Return on Networth (% terms) 15.9% 17.0% 1.1% F
Current Ratio (times) 2.4 2.7 0.3 F
Debtors Turnover (times) 5.4 5.8 0.4 F
Free Cash Flow as % of Net Income (% terms) 79.3% 106.0% 26.7% F
Debt-equity (times) 0.3 0.2 (0.1) F
Interest Coverage Ratio (times) 24.4 17.8 (6.6) A
F - Favourable
A - Adverse

Reasons for significant changes:

• Our Free Cashflow is computed as operating cash flows less net capital expenditure in a given year. Our operating cashflows have improved on account of lower DSO.

• We realized र 26,103 million from the sale of our hosted data center services. We have used part of the proceeds to partially repay our long term borrowings in some of our acquisitions.

• Our interest expense has increased on account of increase in benchmark interest rates.

• Return on Networth is computed as Net Profit by average Networth. The increase in the Net income from र 80,081 million in FY 2018 to र 90,031 million in FY 2019 has resulted in improvement of Return on Networth.

Human Capital

Human Capital Value Chain – Working Ethically and Upholding Human Rights

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

People Strategy

Our people strategies are geared to create learning opportunities, build careers, and foster an empowering and inclusive culture where our employees find meaning in what they do while they create value for Wipro.

People Processes: Key Highlights FY 2019

Hiring and Onboarding

Attracting and recruiting the best-in-class global talent, while ensuring long term people sustainability is a key business objective. We are an equal opportunity employer and focus on meritocracy at all stages of the hiring and deployment process, including role-mapping and remuneration. Localization continues to be a strategic focus for our talent agenda and we have made considerable progress in our key markets. We have a robust process to source and select the best talent, both for entry-level roles as well as lateral hires through our website, channel partners, job fairs, campus placements, and internal job postings. Our comprehensive onboarding program aided by best-in-class systems, help assimilate new talent seamlessly within Wipro. The program includes mandatory sessions on the Spirit of Wipro and Prevention of Sexual Harassment at the workplace.

In FY 2019, we moved towards digitalizing and exploring new channels for our campus hiring process. For the first time, we conducted a National Level Talent Hunt for engineering graduates in India with over 95,800 applicants.

Our recruitment process has become more inclusive with diversity-focused sourcing. As an equal opportunity employer, we do not discriminate on the basis of race, colour, religion, sex, national origin, gender identity, gender expression, sexual orientation, disability status. Our G100 program has successfully brought in diverse talent across the globe who are engaged in impactful work and are groomed for leadership roles of the future.

Performance and Talent Management

Our development-focused performance management system is based on the principles of meritocracy, fairness and transparency. Our quarterly review process, introduced in

2016, continues to be a strong platform to encourage candid, constructive and meaningful feedforward discussions between employees and managers. Our performance management system leverages Artificial Intelligence to aid employees and managers in writing effective reviews. For employees working on Agile methodology in certain projects, we have an Agile Performance Management process which incorporates metrics-driven evaluation and feedback on competencies from self, peers and managers in addition to the quarterly feedforward discussions.

We have an annual 360-degree feedback survey where employees in middle and senior level roles receive feedback on identified competencies from their teams, peers, internal customers, managers, external customers, among others. The feedback report is app-based and interactive, enabling the creation of appropriate action plans for self-development.

At Wipro, succession planning is an annual exercise. Talent is classified in terms of performance and potential, successors are identified for critical roles and development actions are framed. Executive coaching is provided to senior leadership to facilitate their all-round development.

Learning and Development

We continue to make significant investments in learning and development in line with our business imperatives as well as the evolving expectations of our employees. We have a comprehensive Learning and Development program which caters to the behavioural, technical and leadership needs of our employees. Our curriculum includes classroom courses, on-the-job-training, blended learning, social learning, mentoring and gamified modules to suit the diverse needs of the participants.

Social/Peer Learning: 55,000+ employees are members of TopGear - social learning and crowdsourcing platform. Through this platform 7,841 real-life project challenges were completed by these employees in FY 2019. We have created over 250 learning videos which are accessible on mobile. We have also enabled learning through social learning platforms like MS Teams and Yammer, and revamped our Learning Management System, focusing on hands-on training and assessments.

Digital Upskilling: We have enabled over 133,000 employees in foundational, intermediate and advanced digital skills as of FY 2019. We are enabling the delivery leadership through a program called ADAPT, where our Delivery Managers and Delivery Heads are covered to understand nuances of managing digital projects.

Building Capability: We have engaged more than 7,600 senior and middle level managers effectively in workshops such as Global Executive Leadership Program, Global Business Leaders Program, ADROIT, EMPOWER, Design Thinking, Win More: Account Mining for Growth, among others. We have sustained interventions like LeadNxt, Global 100, India 200, PRiSM, Your Career Your Choice, Women in Leadership and Leading Global Teams to manage key aspects such as customer focus, leadership development, diversity and inclusion. Over 50,000 employees across various levels were trained in behavioural skills including communication, customer service, and more to ensure faster assimilation in the organization.

Mentoring Networks: We have launched Mentoring Networks, a platform where employees can find, connect and sustain meaningful mentoring relationships.

Building Foundational Talent: We ensure campus recruits learn behavioral skills through a mandatory three-day program, EMERGE. We impart communication skills and customer orientation to employees through such interventions.

Employee Well-being

Our employee wellness programs encompass the three areas of employee well-being, namely physical, emotional and financial well-being.

Physical Well-being

Risk Assessment: Wipro has established, implemented and maintained a Risk Assessment procedure for ongoing hazard identification, risk assessment and determination of necessary controls, considering all the requirements of the OHSAS 18001:2007 Standard. We conduct periodic as well as annual assessments of our campuses/offices, employees, stakeholders and service providers as a part of this process. Environment, Occupational Health & Safety management systems in our campuses conform to international standards such as 14001/OHSAS 18001 and are certified by accredited third party agencies. Besides internal and other third-party audits, EHS experts assess every unit at periodic intervals not exceeding six months, to ensure compliance to statutory norms and EHS requirements.

Safety and security: Wipro has voluntarily committed to providing best-in-class ‘duty of care support to our global and diverse workforce of over 170,000 employees and 100,000 unique business travellers spanning over 230 cities worldwide. Wipro has a dedicated Global Security Command Centre, run by the Global Security Group, to mitigate risks and ensure safety for a globally mobile workforce. The Foresight

& Analysis (F&A) Division proactively and continually assesses global developments to provide business with various risk briefs and forecasts, and carries out country risk assessments to provide insight to business teams on the operating environment, before they even enter a market. We have well-defined policies and standard operating procedures to ensure the safety of women employees inside and outside the campus. These include Safety Awareness Programs, Global 24x7 Security Command Centre, cab pickup/ drop facility with escort, mobile apps to confirm "Safe Reach", among others.

Sensitization: We have institutionalized various channels that raise awareness, foster dialogue and provide opportunities for employees to give feedback. Over the years, our engagement programs have evolved to cater to our diverse workforce.

Participation in committees: All our facilities have safety committees which meet quarterly and participate in risk assessments, safety inspections, incident investigations and hygiene audits. 3500+ permanent and contract employees participated in committees on safety, food, transport, etc. across India, to represent the interests of the workforce.

Coverage of Training: All employees and contractors working for Wipro undergo the necessary Health, Safety & Environment (HSE) training to ensure they meet with the standard of competence required by law in performing their duties.

Health: All our campuses meet Indian/International standards on hygiene, lighting, ventilation and effective controls on noise and dust. Wipro has 24 Occupational Health Centers with adequate medical staff to monitor occupational health and provide immediate relief, when required. Wellness events are conducted to raise awareness on fitness and health among our workforce.

Cafeteria: A Food Safety Standards Authority of India (FSSAI) license is mandatory for vendors operating within Wipro-owned locations in India. Regular inspections and audits are conducted by internal and external teams to ensure compliance.

FitforLife: Our physical wellbeing program that encourages employees to remain fit and lead a healthy lifestyle. We have a special Wellness Corner mobile app and a web portal that provides employees access to health trackers and a host of other online services to enhance their physical wellbeing.

Emotional Wellbeing

Given our hectic lifestyles, employees sometimes need additional help and guidance for their emotional wellbeing. Mitr is our employee counselling and support forum in India. It enables employees to reach out to counsellors 24x7 in-person and/or on phone to seek assistance for issues pertaining to personal or professional life. In geographies outside India, we have employee counselling services provided as a part of Employee Assistance Programs.

Financial Wellbeing

We continually strive to provide our full-time and part-time employees with compensation packages commensurate with their skills and experience and in accordance with laws of the land. Our benefits program follows an integrated approach and provides a range of options for better financial and social security, including efficient tax-management options, life and accident insurance, medical packages and assistance in managing financial issues. For employees in India, we have MoneyWise, a financial wellbeing program which helps them in better financial planning, tax savings as well as contingency planning. We started providing long-term incentives by granting restricted stock units (RSUs) in 2004 towards long-term retention of key talent. We continue to drive a high-performance culture through our variable pay programs. Our management compensation is now more closely aligned with organizational objectives and commitments, and rewards higher performance, significantly.

Employee Engagement and Communication

To facilitate open channels of feedback and communication within the organization, we have instituted town halls, Yammer blogs and employee connect sessions with senior leadership as well as the human resources teams.

Wipro OnAir – Our global podcast series is the exclusive window into Wipros culture and people. Since its launch in 2017, it has received over 600,000 hits over 50 podcasts. The Wipro OnAir group on Yammer is one of the most engaged groups with over 21,000 members.

Yammer – Our enterprise social platform launched in 2014 has over 106000 users who have shared over 2.3 million messages and formed over 11,000 groups. It is currently the largest social engagement tool at Wipro.

Microsoft Teams – MS Teams is used widely to set up meetings, chats, share data and collaborate across geographies and time zones. The platform has over 47,000 monthly active users with over 3 million conversations per month.

Employee Perception Survey and Employee Insights – EPS is the formal mechanism to capture employee feedback, annually. EPS Pulse 2018-19 results have already been analysed and action areas based on employee feedback are being finalized for the coming year. Based on feedback, we have simplified several of our systems and processes including revamping our Employee Helpdesk, introduced policies that allow greater flexibility at work (the Work from Home policy was introduced in FY 2019), and made trainings and job rotations more flexible. Supplementing the annual EPS, we have also introduced Employee Insights, a platform to seek real-time, continuous and targeted feedback from employees, besides communicating actions taken on feedback. This is done through a combination of pop-polls and enterprise level surveys with built-in analytics.

Inclusion and Diversity (I&D) – Today, the scope of our I&D charter encompasses gender, persons with disabilities, nationalities, underprivileged communities, suppliers, and more recently, LGBT groups. We encourage plurality of ideas and focus on elimination of unconscious bias to foster an inclusive workplace. Our CEO is the Executive Sponsor of our I&D Council. Further, I&D is a key agenda item for our Board reviews. Some of Wipros key diversity initiatives include:

Focus on returning mothers: We have in-house Day Care Centers in eight locations and 11 tie-ups covering 98% of our India employee population. In-house day care centres enrol children from 6 months to 6 years. The food prepared in the centres is in line with recommendations from nutritionists. A basic study curriculum is a part of the package. Parent Teacher Meetings (PTMs) are conducted on a monthly basis and milestones of kids shared with every parent. Core Committees have been formed across locations which include members from facilities, security, HR teams and parents to conduct internal audits, complementing external ones.

We have created a WoW (Women of Wipro) Mom program which aims to support employees returning from maternity break as they transition back to work. HR representatives connect with the employees to provide them with any support or information that they might need. Further, we have curated a WoW Mom handbook for employees in India that gives an overview of relevant policies and processes which (to-be) mothers at Wipro usually look for.

Inclusivity trainings: We continue to nurture a more inclusive work environment by conducting sensitization programs on breaking unconscious bias, working with a culturally diverse workforce and creating focused development programs for women employees. Over 7,000 employees have been covered through the cross-cultural sensitization and womens training programs. Over 9000 employees have undertaken the Unconscious Bias module since its launch in Q3FY19. Over 625 Wiproites have been sensitized on disability. 1,600+ Wiproites across the globe pledged their support for inclusivity by participating in an Inclusive Walkathon and other allied activities. 112,000 employees have completed the PSH online assessment. At Wipro, we believe in the power of conversations and role models- this is enabled through our mentoring programs, I&D speaker series/panel discussions/Women in Business customer sessions

Accessibility for Persons with Disabilities: 90% of our user-facing internal applications, 95% of our external career site, 90% of the mandatory e-learning modules and 20% of the intranet mobile applications have been made accessible for our employees with sensory disabilities. 100+ engineers and training content developers have been coached on Web Content Accessibility Guidelines and Web Accessibility Initiative – Accessible Rich Internet Applications (WAI-ARIA).

LGBT Workplace equality: In FY 2019, we undertook many initiatives to make our workplace more inclusive towards the lesbian, gay, bisexual and transgender

(LGBT) community. These include, revising our Code of Business Conduct, Supplier Code of Conduct and Equal Opportunity Policy to include protection against discrimination based on gender identity and gender expression. We modified our resume application system to include gender neutral language. We launched Wipro Pride – an employee resource group for LGBT and ally employees. We have also created gender-neutral restrooms in Wipro offices. Employees can self-identify as LGBT in our internal HR systems. We supported Business Roundtables endorsement of the US Equality Act, a federal standard that provides non-discrimination protections based on sexual orientation and gender identity for employment, public spaces, education, services, federal programs, and housing. Wipro has received a score of 95 out of 100 on the 2019 Corporate Equality Index (CEI). It is the premier benchmarking survey and report on US corporate policies and practices relating to LGBT workplace equality, administered by the Human Rights Campaign. Wipros score reflects its commitment to LGBT workplace equality, with regard to tangible policies, benefits, and practices.

Thought Leadership & Advocacy: Wipro has participated in various eminent forums through the year, including a senior business leader participation at the United Nations Global Compact & Male champions CEO Roundtable in New York.

Freedom of Association – We respect the right of employees to free association without fear of reprisal, discrimination, intimidation or harassment. Our employees are represented by formal employee representative groups in certain geographies including Continental Europe and Latin America which constitute about 3.4% of our workforce with a further 2.5% under collective bargaining agreements. Our HR representatives meet these groups periodically to inform and consult on any change that can impact their terms and conditions / work environment.

Human Rights & Values at Wipro

Human Rights related Polices and Commitment

Commitment to Human Rights: Wipro is committed to protecting and respecting Human Rights and remedying rights violations in case they are identified. Providing equal employment opportunity, ensuring distributive, procedural and interactional fairness, creating a harassment-free, safe environment and respecting fundamental rights are some of the ways in which we do so. Our Code of Business Conduct (COBC) and Human Rights Policy are aligned to globally accepted standards and frameworks like the U.N. Global Compact, U.N. Universal Declaration of Human Rights and International Labour Organizations Declaration on Fundamental

Principles and Rights at Work (ILO Declaration). They cover all employees, suppliers, clients, communities and countries across geographies where we do business. Wipro is also one of the founding members of CIIs Business for Human Rights Initiative.

Risk Identification Process: We have established committees/processes like the Ombuds process, Prevention of Sexual Harassment Committee, EPS, Audit/Risk & Compliance committees, EHS and an Inclusion & Diversity Council to review progress and formulate strategies to address issues pertaining to compliance, safety and a harassment-free workplace. We keep our employees informed about these processes regularly through trainings, mailers and internal social media platforms. We have also started a process of Human Rights Audit in association with the industry body, Confederation of Indian Industries (CII). The study is designed to identify any risk of Human Rights violations or gaps in any of our own operations or in the extended supply chain.

Identified Risks: Through various audits and feedback we have identified the following as potential risks to Human Rights:

Benefits and engagement of extended/contract workforce

Unconscious bias at the workplace.

Mitigation Policies/Processes: We have created specific interventions to tackle these issues:

Contract Employee Engagement: We engage contract employees for infrastructure support at our offices in India. The duration of engagement varies depending upon the project and role. We have created eLearning modules on COBC, Prevention of Sexual Harassment (POSH) and data privacy for them. Chatbots have been introduced to clarify any doubts that employees may have on policies and guidelines. We also proactively conduct open houses for our contract employees across India where we address their concerns /queries, take feedback and provide them career guidance. Specific concerns on delayed claims, role change and location change, among others are actively addressed.

Sensitization on Unconscious Bias: As mentioned above, under the umbrella of our #BreaktheBias campaign, we have monthly leadership blogs, mailers and a mandatory e-learning module which raise awareness among employees on how they can eliminate biases at the workplace. Around 9000 employees have been trained till date on the e-module since Q3 FY 2019. The campaign also includes scenario based quiz questions with focus on various aspects of inclusion

People Results

Leaders who significantly influence human capital strategies of the organization are measured on the performance of key indicators in this area. The indicators provide insights into the effectiveness of human capital strategies and are reviewed regularly both at organizational and individual business unit levels. The key targets are:

• Attrition – low to mid double digits with focus on retaining top talent

• Employee Perception Survey (EPS) Score – Show measurable progress on engagement levels (Top scores) over the past two years

Productivity & Retention

• Gross Utilization has gone up to 74.4% (increased by 2.2%)

• Net Utilization has gone up to 84.8%, excluding Trainees (increased by 2.3%)

• Voluntary attrition (includes employee initiated termination) - 17.6% (increased by 0.8%)

Engagement – EPS Pulse 2018-19

• 75% overall engagement score (up 1.4% from EPS 2017)

• Increase in scores across all parameters/drivers of Engagement from EPS 2017

• Managerial Effectiveness and Team & Collaboration – highest-rated drivers of engagement. Career and Work-Life balance are areas which need more focus

• Engagement scores for Males is at 74.1% (up 1.6% from EPS 2017) while for Females is at 76.7% (up 0.9% from EPS 2017). For all the questions in the EPS, Female scores are higher than the Male scores

Inclusion

• 35.2% Overall Gender Diversity (0.2% higher YoY)

• 16.9% women in management (in junior, middle and senior management) positions

• 125 nationalities

• Localization : USA - 64.0%, UK - 30.9%, Australia 31.2%

• 545 employees with disabilities employed (with 15 disability types)

Intellectual Capital

Intellectual Capital is core to Wipros Strategy for creating value for the customers and for driving sustained growth, differentiation, non-linearity and profitability for Wipro - by building scalable domain and technology IPs for high opportunity areas leveraging partners, Academia and the start-ups ecosystem and delivered in aaS construct.

Wipro has launched an idea hunting program called "The Great Blue Heron" (The bird – Great Blue Heron is a great fisher and fishing is used as a metaphor for idea hunting) for capturing High potential Opportunities and problem patterns across Customers, Domains and Technologies. This program has been supplying a validated pipe of potential ideas for developing commercially viable IPs.

The commercially viable and market validated ideas are funded through the Horizon program (popularly called H2H3). This platform is designed to identify & incubate disruptive ideas, helping drive significant growth & differentiation for Wipro from a 2-3 year horizon standpoint. During FY 2019 we incubated 16 themes (7 newly approved) around Autonomous vehicle, Digital Twins, Digital, Open Banking, Analytics, Cloud security, Additive manufacturing, SDx, industry solutions for Insurance & Banking.

We are also focused on continued investments for enhancing some of our existing and proven products and platforms like Promax, Netoxygen, Medicare, HOLMESTM, Topcoder, Base))), Virtuadesk etc.

IP Assets: Wipro has a rich portfolio of 60+ commercial-grade licensable Products, Platforms and Frameworks and have been actively investing in strengthening, enhancing and refreshing the portfolio. Here are some examples:

Wipro IMAGINE has near-human ability of having intuitive multi-modal interactions, thereby providing personalized experiences accurately and efficiently across different senses: voice, vision, haptics, smell and taste. It has the potential to transform customer experience through nascent channels of interaction such as augmented reality, virtual reality and mixed reality experiences provided on head-mounted devices. There have been customer engagements on Wipro IMAGINE, such as Digital Advisor Solution for Field & Service personas, Immersive Visualization solution for Product exploration and Facility / Plant Walk-throughs, Digital Trainer Solution for Technician.

Another example is Wipro AutoInsights - A connected car platform using telematics devices to continuously read data from connected cars and uses sophisticated analytics to offer a wide range of benefits to car owners, OEMs, insurers and the ecosystem players. The transformational usecases are Loss Prevention, Safety & Wellbeing, Incentives and offers, Ecosystem Value.

Wipro has also been investing in building IP capabilities is towards Autonomous Vehicle with intent to position Wipro as a Software defined System Integrator for implementing various levels of autonomy in autonomous vehicle and a niche provider of best in class IP that solves unique challenges for autonomous driving.

Cargo Digital Transformation is another example of Domain specific area of investment for Wipro with focused IP around Cargo Reservation Operations Accounting and Management Information System (CROAMIS).

Wipro has been investing in building IP capabilities across the entire spectrum of AI and Automation spanning, RPA to Cognitive and Deep Learning. Wipro drives a persona-first AI approach through Wipro HOLMESTM wherein each persona (COO, CFO, CPO etc.) has a wide portfolio of Automation/AI use cases.

Co-Innovation and Open Innovation: We actively co-innovate with alliances and customers on emerging themes, enabling new customer experiences. Our Open Innovation programs leverage the innovation ecosystem by working closely with our partner/startups ecosystem, academia and expert networks to jointly provide latest innovations to our customers. In FY 2019 we have identified key innovative startups that usefully differentiate our solutions and have been successful in building traction for joint engagements. We continue to be part of various industry and startup forums including the NASSCOM Industry Partner Program, which connect promising startups with us. We also work with and maintain our relationships with accelerators and other investors and influencers in the startup ecosystem. We continue to work with a variety of open innovation intermediaries to leverage expert networks across the world to complement our specialists on niche projects such as rapid development of mobile applications, AR based immersive experience on applications, revolutionizing employee based retention through Intelligent chatbot, streamline IT operations with AI, automating drafting and executing of legal contracts and much more.

Innovation Centres: Our innovation incubation centres, the Technovation Center at Bengaluru and the Silicon Valley Innovation Centre in Mountain View California, continues to drive technology-led innovation to visualize the "art of the possible" in emerging business environments for our customers globally. These Centers brings together an innovation ecosystem, a set of best practices, IP and research and development resources to help our clients develop successful initiatives

Wipro also has 19 Digital Pods across the globe. A Digital Pod is a workspace to foster collaboration within a multidisciplinary agile team. Each team of 8-10 persons is known as a "Digital Cell". These cells work with the necessary autonomy to facilitate speed, continually validating progress with user research and technical performance data. The cells also follow Wipros No-Shore ways when working with similar cells distributed across the globe. Leveraging the best in class processes, teaming norms and technology enablers like the Digital Rig etc, the cells work as a single networked entity delivering business value faster to the consumers.

Research Areas and Solutions in Advanced Tech. Areas: Wipros Research and Development initiatives continue to focus on strengthening and extending our capabilities across multiple new and emerging technology areas, intersection of these technologies and potential business use cases applying these technologies. We are investing extensively in developing solutions and services in a host of advanced technology areas (e.g. ADAS/autonomous vehicles, commercial wearables, machine vision, human machine interfaces, smart assistants, natural language processing and understanding, Blockchain tech, quantum computing, smart machines, among others). We continue to invest in working on new ways of software development and deployment for edge-based IoT and always-on architectures.

We are actively building solutions in collaborative robotics, drones for industrial and warehouse applications. Our objective is to build AI based software platforms that consists of cognition and decision systems so that we could deploy the solutions at scale with the customers. We are currently building software platforms for automations of machine tending, intelligent material handling & transport. This uses the Computer Vision Platform that which provides actionable insights to improve compliance, quality and productivity using image and video analytics. We have built partnerships with Robot & accessory vendors to become single point solution provider for our customers. Some of the use cases we have built that are showcased in our innovation centres are shopper robot, vision assisted machine tending operation, inventory & inspection, segregation of hazardous materials, game playing robot.

We are building a solution for warehouse inspection using drones. Drones fly periodically and help in the accurate identification of materials across the warehouse at any point in time.

We are also collaborating with agricultural university, startups and research institutions to develop early detection of pest infestation in crops with the use of these APIs. We have reached a reasonable accuracy in detection and are working with one of the processing industries to deploy the same.

Academia: This year we signed an agreement with Swinburne University, Melbourne, Australia to create a Wipro Chair in the University, to lead critical joint AI technology research. We continue to actively scout for academia research programs from institutions across the world, where we can establish mutually beneficial research collaborations.

Our joint research collaboration with Tel Aviv University where Wipro and TAU are working on core and applied research in image and text analytics using deep learning and sparse representation models and techniques, transfer domain and incremental learning problems has resulted in some key advances, and our research collaborations with the Indian Institute of Science on technologies for autonomous vehicles is also on track.

In addition, we have entered into research collaborations with IISc on technologies for autonomous vehicles. Further we continue to actively scout for academia research programs from institutions across the world, where we can establish mutually beneficial research collaborations. Wipro has also worked with IIT Kharagpur to discover an alternate way to secure the IoT devices which is lightweight and doesnt require computational & battery power. This is achieved by building Physically Unclonable Function (PUF) based authentication and key exchange protocol for IoT devices. The drawbacks associated with the traditional authentication protocols for IoT devices is minimized by eliminating password dependency and binding access requests to originating device.

Crowdsourcing: We have continued our investments in TopGear, the social learning and crowdsourcing platform focusing on workforce transformation in ‘Digital and "in-demand" skills.

Patent Filings: Our R&D work has contributed to some significant patent applications during the FY in key technology domains. As has been reported earlier we have been investing in building a focused patent portfolio that protects critical Wipro IP. As of FY 2019, we have a total of 2,236 patents filed in various Patent Jurisdictions across the world, of which 558 have been granted. Recognition of our work in IP creation has come in the form of the prestigious Enterprise Trophy presented to us by the World Intellectual Property Organization, as well as the National IP Award from the Government of India.

Highlights for the year

• In the year ended March 31, 2019, Wipro filed 305 patents and currently has approximately 558 registered patents and 1,678 patent applications pending registrations in various jurisdictions across the world.

• Wipro won the "Asia IP Elite" award from the Intellectual Asset Management publication for the sixth consecutive year for best IP Practices

Social & Relationship Capital

Organizations earn and maintain their societal license to operate by adopting a boundary-less perspective and co-creates social value through positive outcomes along with its customers, business partners, vendors, employees, investors, communities and civil society. To this we also add another key stakeholder– future generations, helping bring a perspective from the unrepresented future, but that is core to creating a sustainable society. We talk about each of these stakeholders in brief below.

Customers

Wipro believes in creating value for the customer over and above our contractual obligation. Our approach is based on our vision of delivering value to our customer businesses based on a solid relationship of trust, collaboration and competence. We ensure this by providing solutions that integrate deep industry insights, leading technologies and best in class delivery processes.

Artificial intelligence is emerging as a defining technology, empowering organizations to make rapid and informed decisions. However, for AI to deliver on its promise, predictability, transparency and trust are critical. Our solution capabilities enable responsible AI through our platform (Wipro HOLMESTM) and the ETHICA (Explainability, Transparency, Human-first, Interpretability, Common sense, and Auditability) framework.

Engagement is critical to meet and understand the expectations of customers. The key to customer retention is building deep relationships. IT industry, a major driver of efficiency and productivity improvements for most businesses, is undergoing tremendous change in the face of disruptive technologies. The Business Strategy section outlines the drivers and how it informs our business model, offerings and customer engagement approach.

The Voice of the Customer is heard at various levels i.e., at project level, program level, account level and through direct feedback, informal meetings, governance meetings and senior management interaction with the client. The processes include Program CSAT, Quarterly Pulse Surveys and the Annual CSAT conducted through third party surveys. These are conducted formally and at appropriate intervals to capture customer feedback on Wipro. During the reporting year, there has been a 511 basis point increase in customer Net Promoter Score from previous year.

From a sustainability perspective, the most material issues for our customers include Data privacy, IT Security and compliance on sustainability related aspects. The World Economic Forum Global Risks Report 2019 lists large-scale IT security issues and data fraud/thefts among the top 10 in terms of likelihood and impact. The Sustainability Accounting

Standard Board (SASB) standard for software and IT services also lists these as being material to the sector.

IT Security: Wipros IT infrastructure is certified under the ISO 27001 standard which provides assurance in the areas of information security, physical security and business continuity. We benchmark our processes to meet the EUs General Data Protection Regulation (GDPR) and SOX IT compliance requirements. We closely monitor IT infrastructure availability incidents based on severity, outage duration and users impacted. Most of the incidents are related to telecommunications and network links. We have maintained SLA with vendors on IT and telecom infrastructure availability close to 99.99% in the reporting year.

Data Privacy: Being a B2B business, Wipro does not collect, store or monetize information pertaining to our customers attributes or actions, including but not limited to, records of communications, content of communications, demographic data, behavioral data, location data, or any other personally identifiable information. Therefore, our company does not receive requests for customer information from government or law enforcement agencies. Wipro does not store any customer proprietary data in its systems and networks. In rare circumstances where, as part of project requirement, it is needed to view customer data, it is accessed remotely with the data being stored and hosted on the customers systems. This helps in meeting data privacy compliance requirements from a contractual & operational perspective since it is Wipros customers that are in control of their own data, even while outsourcing project work to Wipro. Wipro signs Master Services Agreements with its customers that have clauses covering confidentiality of the customers information. Wherever applicable, Wipro also executes Business Associate Agreements with its customers who are governed by sectoral privacy regulations such as HIPAA (Health Insurance Portability and Accountability Act) of 1996. As a matter of due process, a customer is notified in the event of any breach of data privacy as per notification procedure agreed in the contract.

We have a Data Protection and Privacy policy based on globally accepted data protection principles applicable to the entire organization. The privacy policies and procedures are reviewed internally and audited on compliance. There is continuous monitoring of any privacy incident or deviations to the policy. Appropriate disciplinary actions are taken in the event of any breach.

In April 2019, we became aware that our system was subject to a cyber attack by a coordinated and advanced phishing campaign, which was reportedly directed against several major companies, including Wipro. Upon learning of this incident, we collaborated with forensic firms to investigate and have worked closely with our anti-virus provider and our information security team to counter the threat found in our system and implemented a series of additional precautionary and containment measures across our systems. Our investigation into this incident remains ongoing and will be concluded shortly.

Sustainability: Apart from technology driven value creation, our global customers also expect transparency and compliance on different sustainability aspects within our operations and in our extended value chain – Human Rights, Labour Practices and Diversity being key dimensions among them. Many customers require acceptance and alignment with their supplier code of conduct and/or global frameworks. We have +150 of our customers who are part of independent raters like Ecovadis, Verego and industry led consortiums like the JAC (Joint Audit Consortium), Pharmaceutical Supply Chain Initiative (PSCI) and Quest Forum (Focusing on Quality and Sustainability in ICT community). We also respond to CDP supply chain with information on our GHG emissions attributable to the work we do for specific customers and as a corollary, on collaboration opportunities with those customers on GHG mitigation.

Suppliers

Managing and mitigating the environmental and social impacts of ones supply chain are interlinked to effective economic outcomes over the long term – they can help businesses avoid disruptions, meet evolving customer requirements, foster innovation and protect the companys reputation and brand value. It can also help further the business imperatives of efficiency, cost effectiveness and resilience in the supply chain. The supplier ecosystem of Wipro can be broadly categorized into two heads - contract employees involved in core delivery of IT Services and Solutions (refer the Human Capital section); and ‘product or services supply chain or ‘secondary supply chain which comprises suppliers who provide materials, equipment and end-products, business support services and facility management services for our operations.

Our Code of Business Conduct (COBC) and the Spirit of Wipro values provide the ethical guidelines and expectations for conducting business and for directing Wipros relationship with its suppliers. The code is applicable to all suppliers, agents, service providers, channel partners, dealers and distributors. In addition to the COBC, the Supplier Code of Conduct (SCOC) of Wipro further strengthens and augments the COBC with respect to environmental and social aspects (including key aspects of human rights) of business practices and sets clear expectations from our supply chain. All decisions related to procurement are governed by our procurement policy which addresses social and environmental aspects like green procurement, supplier diversity, equal opportunity in sourcing and accessibility of goods and services for people with disabilities.

Our Supply Chain engagement has been a journey where 48 sustainability has increasingly become central. Our engagement approach is multi-pronged with the focus on improving the capabilities of suppliers in managing their sustainability performance. Manpower service providers in civil, operations and support services is a category identified as being significant in terms of social impacts. Similarly, suppliers who provide utility products and services (electricity, water, waste management) and ICT equipment have large environmental footprints and are therefore material to our strategy to reduce our environmental impact.

A significant feature of our engagement is how we align our community or CSR (Corporate Social Responsibility) programs with supplier engagement wherever it is possible. This can address some of the fundamental issues at hand– our bridge program in education for children of migrant laborers for our new infrastructure projects, urban water programs in cities where we operate and access to social benefits for city municipal solid waste workers are some examples.

Supplier Diversity: Wipro is an Equal Opportunity employer and strongly advocates the same through its supply chain by encouraging supplier diversity. Qualified enterprises owned by persons with disability, women or member of minority communities are proactively identified and engaged with. We are restructuring our vendor empanelment process to help strengthen our supplier diversity process.

Summary of supplier sustainability engagements:

a. The second phase of Vendor Compliance Management Audit covering FY 2017 and FY 2018 concluded in June 2018. Employee Benefits provided and Womens Safety at workplace were identified as key issues for workers in supply chain. A total of 330 vendors were covered within its scope.

b. Based on Trucosts natural capital valuation, high carbon/water/waste footprint suppliers are identified in supply chain.

c. Identifying High Risks Vendors: It is compulsory for all our vendors to submit a signed copy of Wipro Supplier Code of Conduct (SCOC). High Risk Vendors (HRV) identified based on geography, nature of service and other criteria go through additional checks and balances during processing for key words like government payments, miscellaneous expenses, bribe, commission, facilitation fee, gift, reward, out of pocket expense, etc. All HRV vendors are required to submit an anti-bribery anti-corruption questionnaire. We also have requirements of stricter negotiating threshold, clear break up of costs and multiple quote regardless of the value.

d. Supplier Diversity Program for facilities management services at our campuses – A sensitization program was conducted and expectations have been conveyed formally through our contracting process. The gender diversity ratio for supplier staff deployed at our facilities is 25.6%.

e. Green initiatives in ICT Hardware:

Green Procurement: Wipro adopted the EPEAT standard from Green Electronic Council in 2016 for its IT hardware procurement – across categories such as laptops, desktops, printers, mobiles and servers. In 2018, we purchased more than 6,344 EPEAT Gold and over 140 EPEAT Silver and Bronze category products across desktops, laptops, displays, imaging equipment and mobiles. In tangible terms, our procurement of EPEAT certified hardware translates into a saving of 2.6 million KwW of energy, reduction of 598 tons eq.

Enhancing Virtualization Platform: Till date we have migrated 6300 users from traditional physical desktop to Virtual Desktop Infrastructure (VDI). This has led to reduction in energy consumption, easier operations and cost saving.

Assetre-utilization: Through proactive maintenance and upgrades, we have been able to reutilize 16% of the assets post their scheduled end of life.

Managed Print Services: This outcome-based model, where Wipros printing services are managed through an independent third party helps generate higher operational efficiency through better controls and analytics as well as reduced resource consumption (paper, toner) and planned asset refresh. Consumables and printer issues are tracked remotely and managed by MPS vendor.

During the reporting year, we optimized MPS through asset reuse and printer removal, leading to cost saving of र 1.1 million. We have also reduced unwanted printouts by a provision to scan and send documents to respective user mailboxes and are currently planning to implement ‘authentication service-access before print to further bring down print and paper volumes.

Investors

Our endeavor is to, not merely, report true and fair financial results in a timely manner but also communicate the business outlook, risks and opportunities transparently to the investor community. Increasingly, discerning investors are interested in the longer term strategy of the organization and issues which are material to the industry. We deploy multiple channels of communications to keep investors informed about various development and events.

Wipros senior leaders along with our dedicated Investor Relations team participate in various forums like investor conferences and investor road shows, in addition to hosting investors and equity analysts who visit our campus. Our quarterly results, regulatory filings, transcripts of our earnings call, media presentations and schedule of investor interactions are available at https://www.wipro.com/en-IN/ investors/

We participate in leading investor led disclosures like Dow Jones Sustainability Index, Vigeo, FTSE Russell ESG, MSCI ESG, Sustainalytics and Carbon Disclosure Project. Wipro was selected as a member of the global Dow Jones Sustainability Index (DJSI) 2018 for the ninth year in succession. Wipro is included in both the DJSI World and Emerging Markets Indices. The Euronext Vigeo Emerging Market Sustainability Index also includes Wipro among the 70 most advanced companies in the Emerging Market Region. We are also member of FTSE4Good and Global Sector leader.

Highlights of the year

The following table details the different types of engagement exercises undertaken by the company in FY 2019:

Particulars Q1 Q2 Q3 Q4 FY
Investors meetings & Calls 39 27 23 30 119
Conference - 4 3 2 9
Road Show 1 1 2 1 5
Conducted

Education

Engaging in deep and meaningful systemic work in the area of school and college education

• School Education in India - WAITS

• School Education outside India - USSEF

• Sustainability Education - Wipro earthian

• Engineering Education - WASE, WiSTA

Community Care

Engaging with the proximate communities in areas of primary health-care, education, ecology and disaster rehabilitation

• Primary Health care

• Education for underprivileged

• Children with disability

• Environment

• Disaster Rehabilitation

Ecology

Addressing environmental issues like energy, water, solid, waste and biodiversity

• Energy & Carbon

• Water

• Waste

• Biodiversity

Earning 1 1 1 1 4 Conference calls

Communities and Civil Society

At Wipro, we think it is critical for business to engage with the social and ecological challenges that face humanity in a deep and meaningful manner with long-term commitment; for that is the only way by which real change can happen on the ground. We engage with communities on issues that matter to them most. Wipros social initiatives center on the following dimensions. The programs on ecology are covered in the ‘Natural Capital section.

Key programs in Education

Our work in education covers a range of initiatives in school and higher education from systemic reforms to sustainability education. Apart from India, we have significant programs in USA and initiated a new program in UK as well. The common vision that ties this together is our belief that good education is a the primary enabler of change towards a better society.

Systemic reforms in School Education

Since 2001 we have been working on issues of systemic reform in school education in India, through the Wipro Applying Thought in Schools (WATIS) program. The strategy has two key elements; (i) to support the development and strengthening of good organizations working in this space. Till date, we have partnered with 116 organizations working in different areas of systemic reform. The impact of this wide network of education organizations has been in the areas of curriculum, text books, teacher capacity, and school leadership. Since inception, our work has spanned 181 projects with a collective reach of close to 20,000 schools across 29 states. During FY 2019, we continued to build momentum of identifying and supporting new and young start-ups in school education through a structured program of seeding fellowships. 25 Fellows from 14 organizations were added during the year taking the total number of ‘Fellows to more than 85. (ii) The second element of our strategy is to support organizations working in other developmental areas like livelihoods or healthcare and encourage them to expand their work to school education.

In addition, we continue to identify and partner with good early to mid-stage organizations who are already working in education. Two such organizations were supported through the grants program during the reporting period.

In combination, we hope this strategy will eventually help to build a bulwark of strong organizations across the country which are deeply committed to change in school education.

As part of network building and advocacy of such issues, our 18th annual forum was organized – a unique platform that brings together the best minds in education in the country to deliberate and exchange thoughts and ideas on some of the most important issues in education.

Key Highlights of the Year

• 18th Partners Forum held in November with ~ 150 participants attending; Fellows Annual Meet and 2 Regional Meets (for East & West) also organized.

• 8 capacity building workshops conducted for partners through the year, in partnership with resource organizations such as Jodo Gyan, Vikramshila, Digantar, Bookworm and Azim Premji Foundation.

• Sixteen new organizations have been supported this year; of these, 14 organizations (25 fellows) were supported through seeding fellowships and 2 through organization grants.

Wipro Science Education Fellowship Program in USA

The Wipro Science Education Fellowship (SEF) is a significant initiative we started in USA in 2013 with a focus on improving STEM (Science, Technology, Engineering and Math) learning in schools that serves disadvantaged communities. Our work centers around helping teachers become better STEM educators and change leaders for STEM in their school districts. Anchored by the University of Massachusetts, the program has been widely accepted in USA as an important initiative in this space. In last 18 months, we expanded our presence significantly, adding three new sites at Tampa, Florida, Jefferson City, Missouri and Mountain View, Santa Clara. We established three new partnerships for these sites with the University of Southern California, University of Missouri and Stanford University respectively. With this, the Wipro-SEF program is active in 35 school districts across seven locations in the U.S, including the existing sites at Boston, New York, New Jersey and Dallas. Cumulatively, we have worked with 500 teachers till date.

Wipro Science Education Fellowship Program in UK

We launched the Wipro Science Education Fellowship program in the UK in FY 2019 in partnership with Kings College, London and Sheffield Hallam University. A three-year agreement was finalized with Kings College London, to develop and offer UKs first Masters program in STEM education, targeted at in-service teachers from ‘social-mobility cold-spots. The program was launched successfully in February 2019 and will admit its first cohort in the coming academic year. Sheffield Hallam University initiated the ‘Wipro Teacher Fellowship and ‘Wipro Teacher Mentor programs to provide rigorous continuous professional development to STEM teachers working in government designated ‘opportunity areas, which by definition have a high proportion of failing-schools. About 25 teachers representing 20 schools in/around Sheffield have joined the first cohort in January 2019. The recruitment of the second cohort will begin in Q120.

Sustainability Education

Wipro earthian, our flagship program that brings together two of our key concerns, Education and Sustainability, into a nation-wide initiative for schools and colleges continued to expand and progress on multiple fronts in its eighth year. In the schools segment, Wipro earthian is now present in more than 30 states and union territories across India. In the past couple years, we have consciously established and expanded our outreach to the North-East in India and the Northern Himalayas, which is normally underserved on many counts. While our strategy for schools is centered on broad awareness building through large scale outreach, our engagement with colleges is more selective and aligned with the particular characteristics of different disciplines and institutes.

Wipro earthian covers two phases – the Wipro earthian awards program and the Continuous Engagement Program (CEP). The award program for schools engage students under two thematic areas - Water and Biodiversity. Participating schools form teams and engage in an intensive 5 month activity based learning program in their school and communities. The CEP provides unique learning experiences for schools and colleges – through experiential workshops, internships, in-school learning material and co-creation of faculty led pedagogy material, which further accelerates sustainability learning at an institutional level.

Key Highlights of the Year

• First - time workshops held in underserved areas like Kargil, Dras, Nicobar Islands, and Sunderbans, increasing our geographic spread and reach. Overall submissions came in from 29 states, 3 UTs and 51 districts covered by the program.

• Continued partnership with School of Sustainability, Xavier University, Bhubaneswar and MOUs with leading institutes to develop sustainability pedagogy tools for faculty across various disciplines/subjects

- CEPT, Ahmedabad(Urban Planning), IIM Ahmedabad (Sustainability Business Case study development) and ICT, Mumbai (Chemical Engineering).

• 2 doctoral fellowships on sustainability, a faculty-led research program on the theme of ‘Business and Human Rights and ‘Sustainability Risk Assessment with IIM-Bengaluru and a faculty development program on curating MOOCS fpr business sustainability

• 20 students from 5 colleges completed their internships with diverse sustainability non-profit and consultancy organizations - TRUCOST, BIOME, CSTEP, WRI, CDP

• 7 sustainability quizzes at XUB, IIM-B, IIM Kozhikode, NIT Trichy, GIM Goa, IIT Delhi, MIT with participation from 710 teams and 1420 participants.

• 2 Field Experiential workshop conducted Yelagiri and Katerniaghat wildlife sanctuary attended by 9 teachers and 41 students from schools

• The 8th edition of the Wipro earthian awards were held on the 9th of Feb 2019 with over 200 attendees including winning teams, program partners, employees and media.

Technology Education

People with the right skills and competencies form the bedrock of IT services organizations. The challenge for the Indian IT industry has always been to respond fast enough to the ever rapidly changing dynamics of the industry. The present times are no different, in fact even more so with the challenge of a bewilderingly fast changing landscape of technology which is often summarized as Industry 4.0. We have always owned this as our primary responsibility. In 1995, we started a program for science graduates that would enable them to study for a post-graduate degree in engineering and technology, called the Wipro Academy of Software Excellence (WASE) program, it helps Science graduates to study for a Masters degree in Software Engineering (M.Tech). Run in partnership with the Birla Institute of Technology & Science (BITS), Pilani, India, this unique program blends rigorous academic exposure with practical professional learning at the workplace. We launched yet another program with BITS Pilani, called Wipro Infrastructure Management School (WIMS) to develop and nurture an exclusive talent in IT infrastructure business, keeping the Cloud Computing as the technology theme. We run a similar program called Wipro Software Technology Academy (WiSTA) in collaboration with Vellore Institute of Technology (VIT) for science graduates to offer some specific courses like Data Scientists, VLSI and Embedded and Information Technology programs. Since its inception in 1995, Wipro has supported and enabled more than 30,000 students to pursue their higher education in Engineering with Indias Premier Engineering Institutions under the programs WASE, WiSTA and WIMS. Over 18,200 students successfully completed their M.Tech degree in various IT disciplines over the last two decades. During FY 2019, the total number of new entrants into the three programs was 1,440 while the aggregate strength across four years was over 10,000.

Working with communities everywhere

A primary tenet of our CSR strategy is that we must engage with communities proximate to wherever we have significant operational presence in the world. We choose to work with underprivileged communities in particular. Our work is channeled through Wipro Cares, a unique trust that is based on operating model of employee contribution matched by Wipro Limited. The work spans following areas:

a. Education for underprivileged children: Education is so critical that it is necessary to focus on multiple points of leverage. While systemic reforms are an important area of work, we also have a large program that is designed for more direct impact on underprivileged children. Run through Wipro Cares, the program reached out to around 41,000 children across eight states in FY 2019. The projects address a gamut of critical issues faced by disadvantaged communities when it comes to school education – starting from enrolment in schools to nutrition for children, counseling services for parents, remedial education, just to name a few. These children are from some of the most vulnerable groups in our society – urban slums, HIV-affected families, migrant labor families, street children.

b. Education for Children with Disability: We continue to strengthen our program which supports the educational and rehabilitative needs of children with disabilities from underprivileged backgrounds through 17 projects across six states that works with around 2,200 children. Going beyond just schooling, our approach tries to integrate enabling factors like availability of nutrition, community support, specially trained teachers, assistive technology, access to healthcare etc. Our work in this space covers multiple categories of disability and focuses on early intervention and inclusive education.

c. Primary Health Care: Access to primary health care is a key determinant of an individuals future trajectory in life, including the ability to engage in productive livelihoods and responsible citizenship. Wipro works with partners who provide quality primary health care services to underserved communities covering more than 77,000 people belonging to extremely disadvantaged communities in Nagaland, Karnataka, Delhi and Maharashtra. Our work in these states is in urban slums, and villages where health care access has been weak or non-existent. Our operating approach is driven by the primary goals of building the capacity of the local community in managing their health needs, of augmenting government infrastructure and in training health workers to address the unique needs of the communities.

d. Disaster Rehabilitation: Natural disasters like earthquakes, floods and cyclonic storms are an unfortunate fact of life, especially in a climatically and geologically diverse country like India. Whenever these happen, the disadvantaged sections get affected the most as the already fragile basis of their livelihoods gets further disrupted. Starting with the Gujarat earthquake in 2001, we have responded to several natural calamities wherein Wipros employees have also risen to the occasion and played a sterling role. By design, we focus on the more difficult challenge of long-term rehabilitation of the affected communities.

‘Unnati, the rehabilitation project that we initiated in 2014-15 in Uttarakhand, aftermath its 2013 floods, has progressed well on multiple fronts. Our program seeks to strengthen local livelihoods of communities in 27 villages in Uttarkashi district through improved farming practices in organic agriculture. A farmers cooperative has been set up to strengthen market linkages, a crucial element in the whole value chain. While we think there is a long way to go in this regard, our assessment is that the program is at a stage now where the basic institutional scaffolding is in place and it can be built up effectively, going forward. In response to the Kerala floods in Aug 2018, as part of our rehabilitation program we initiated two projects:

To restore running of 8 craft-based livelihood centres which have been dysfunctional as a result of the Kerala floods and to train and provide employment for 150 women with a special focus on 30 persons with disabilities.

To strengthen the existing livelihood of 149 flood affected fishermen community with restoration of damaged fishing equipment and gear.

e. Community Ecology: Our project in agro-forestry in rural Tamil Nadu has helped nearly 100 farmers in effectively implementing integrated farming by planting 40,000 trees in FY 2019. Our project in urban solid waste management at Bengaluru provides social, nutritional and health security to nearly 8,000 workers in the informal sector of waste as well as comprehensive skills upgradation program for about 100 such workers.

The power of engaged employees

Employees are integral to many of our social programs in many ways. Providing them a platform to engage develops a sense of citizenship and larger responsibility towards society. From our experience, employees also see this as a workplace differentiator, The Wipro Cares trust is built on a model of employee contribution that is matched by Wipro. More than 30,000 Wipro employees are currently engaged with Wipro Cares either through volunteering or by way of monetary contributions or both. During FY 2019, more than 12,500 employees from nearly 40 chapters in India and overseas collectively spent around 33,000 hours in voluntary engagement on a wide range of community and environmental initiatives. One of our prime goals is to further increase the scale and scope of employee engagement.

International Chapters

Our employees across the world are keen and enthusiastic participants in local community initiatives. Through Sprit of Wipro (SoW) Run, more than six thousand Wipro employees from across the globe contributed for their local charities. Beyond the SoW, in North America, First Book continues to be the anchor community program. More than 400 Wipro employees volunteered hundreds of hours and distributed more than 109,000 books impacting more than 50,000 at-risk and rural students throughout North America. Including First Book activities, Wipro employees volunteered more than 5089 hours in the US.

Beyond the US, Wipro Cares chapters in Philippines, UK, Europe, Asia-Pacific and Japan have also been very active in engaging with local communities on a range of initiatives that include disaster rehabilitation (i.e. Australia), biodiversity conservation (i.e. Spain), health care (i.e. Europe & US), food drives (i.e. Brazil & US) and education for disadvantaged children, particularly children with disabilities (i.e. Philippines). All programs remained consistent with the Wipro Cares Charter.

Natural Capital

Managing economic development in a manner that does not compromise ecological integrity of our planet has posed one of the biggest challenges to humanity ever since the industrial revolution started. It will be even more so in the coming decades of this century. It is no surprise therefore that 7 of the 17 U.N. Sustainable Development Goals directly reflect these concerns while the remaining 10 goals have indirect intersects with ecology and environment in some way or the other. While the climate change challenge is most talked about and debated, the problems of water scarcity, biodiversity loss and the pollution and depletion of our natural commons are equally critical.

The increasing criticality of issues like climate change and water stress in the last few years has led organizations to look beyond their boundaries. While internal business drivers like resource efficiency, waste management and pollution mitigation have been the primary levers of any corporate environmental program, organizations have come to realize that in order to make a real impact at a larger, systemic level, one can no longer ignore the externalized costs of ecological damage. Natural capital thus refers broadly to the notion that nature provides immense value that is critical to human existence and therefore, any action that depletes natural capital is self-defeating for our society.

Our approach embraces the continuum of

• Initiatives ‘within the organization that focus on reducing the energy, water, waste and biodiversity footprint of our business operations; and

• Engaging through partners on key external programs in community ecology.

Ecological Sustainability Governance

Sustainability governance at Wipro is formed by our strategic choice to work across both dimensions – business responsibility and social responsibility. Business responsibility is about ensuring that the ecological footprint of its operations is minimized and about the organization fulfilling its essential regulatory duties, and running its business with integrity. The second dimension of social responsibility is about looking beyond the boundaries of organization and contributing towards development of the larger community. The governance responsibility is spread across hierarchies and functions seeing themselves as key stakeholders in its success; for ecological issues the Global Operations team, the People Function, Community programs team, the Risk office and Employee Chapters play a major role in several of the programs. Strategic oversight of sustainability programs rest at the corporate level with our Chairman, Board of Directors and Group Executive Council. The goals and objectives are jointly set with inputs from across functions. The quarterly reviews are attended by the Chairman, Chief Strategy Officer, Chief Financial Officer and Chief HR Officer apart from the Chief Sustainability Officer and Head of Operations. We benchmark our performance with our global peers through extensive disclosures as well as a system of rigorous audits internal and external. We have started the process of incorporating key sustainability risks like climate change into our ERM framework.

All key organizational stakeholders have defined responsibilities related to planning, execution, review, evangelization and advocacy of the sustainability agenda of the company. The table given below illustrates the responsibility matrix for our environment programs (energy, water, waste and biodiversity).

Planning & Review Execution Internal Evangelizing External Advocacy
Board of Directors
Group Executive Council
Business Leadership
Facilities Management Group
Infrastructure Creation Group
Ecoeye - Sustainability Office
Employee Chapters
Human Resources
Finance
Corporate affairs, Brand & Communication
Risk Office

Management Approach

The implications of environmental and climate change risks to our business and to our society at large demands the identification and prioritization of material issues for our organization . At Wipro, we have identified Energy efficiency and Green House Gases (GHG) mitigation, Water efficiency and Responsible Water management, Pollution and Waste management, and Campus Biodiversity as our most material issues and have developed programs around them.

Our Ecological Sustainability Policy, available at https:// www.wipro.com/content/dam/nexus/en/sustainability/pdf/ ecological-sustainability-policy.pdf form the structural frameworkforourenvironmentalprogramsandmanagement systems. We have been following the guidelines of the ISO 14001 framework for nearly two decades now as one of the cornerstones of our Environmental Management System (EMS). 20 of our campus sites in India and 8 in Australia are certified to ISO 14001 and OHSAS 18001 standard. Other campuses are benchmarked against the same standard as a part of our internal review/audit process. We have been responding to Carbon Disclosure Project (CDP) Climate Change Investor and Supply Chain for the last 10 years. In addition we have applied the Natural Capital Protocol guidelines to publish our annual Environmental Profit and Loss account. We are also members of LfN (Leaders for Nature) consortium anchored by IUCN in India and CIIs India Business and Biodiversity initiative (IBBI).

Strategic Partnerships are key to achieving our goals across the value chain. We work with Renewable energy suppliers, energy efficient hardware manufacturers and service providers and other partners who help to reduce our overall GHG footprint including employee commute and business travel footprint. We were one of the early adopters of Green Building Design with 18 of our current buildings certified to the international LEED standard (Silver, Gold, and Platinum) during commissioning. We strive to maintain the same standards in the maintenance of our facilities.

A well-defined strategy drives out ecological initiatives with a rigorous framework of target goals and metrics which are reviewed on a regular basis.

Environmental Risks

The Enterprise Risk Management and Sustainability functions at Wipro jointly oversee environmental and climate change related risk identification and mitigation. Impacts of extreme weather events, urban water stress, air pollution, waste management and their impacts on employee health and wellbeing are the most material issues we engaged with. We are currently carrying out a comprehensive climate change risk assessment program, encompassing both physical and transitional risks, for our major operational locations across the globe, covering India, China, Philippines, Germany, Romania, the UK and the US. This is being done for two scenarios (based on the IPCC defined RCP 4.5 and RCP 8.5) for the medium to long term (2030-2050). . This assessment provides detailed analysis of the changes in key climatic parameters such as temperature and rainfall that are likely to impact Wipros operations. It takes into consideration a variety of climate risks which include, an increase in extremely hot days and extremely warm nights, increasing frequency of heat waves, exacerbated urban heat island effect, air quality deterioration, urban flooding and decreasing water availability.

Key outputs from climate modeling:

Our assessment shows that we are likely to observe an increase in day-time temperature (0.02-2.98C) and night-time temperature (0.35-1.74C) across all locations except Chennai, where a decrease (0.7 C) in the day time temperature is likely, in both the short term (by 2030) and long term (by 2050). This increase in day time temperatures could contribute towards an increase in the energy consumption and associated operating costs at each location. This change could also adversely impact the health and well-being of our employees decreasing their productivity. When it comes to rainfall, our risk assessment model predicts an increase in rainfall, ranging from 11 to 267mm, for every city except Kolkata, Pune and Vishakhapatnam which will likely see decreases (13.2-126mm) in rainfall in the long term. Increase in extreme precipitation is likely to lead productivity loss due to employee absence caused by disruption in city infrastructure and an increase in tropical diseases. Given that every city other than Kochi and Kolkata already lie in highly water stressed zones, the predicted rise in temperature coupled with increasing urbanization is likely to accelerate water stress. The corresponding increase in rainfall in most cities is unlikely to help improve this situation unless additional water conservation measures are taken up in the city. Thus, across the country we are likely to experience increasing challenges and costs for procuring water.

We notice that our operations in Romania, China, Philippines and USA are likely to be susceptible to physical risks such as floods, tropical storms and tornadoes. These events could impact the wellbeing of our employees in the affected regions thus impacting our operations. Philippines in particular is likely to face significant fluctuations in rainfall and humidity patterns which could lead to an increase in the spread of infectious diseases in the country, affecting the health of our employees. On the other end of the spectrum, we find that our operations in Germany, the UK, the US, China and Romania, are the ones most exposed to transitional risks arising from policies and regulations geared towards enabling these countries transition into low carbon economies. However, we must point out here that the majority (more than 70%) of our employees are based out of India. In addition the fact that all our overseas locations are leased premises reduces the direct infrastructural risk in our overseas centers.

Climate change related impact: Our risk assessment exercise is undertaken at both the company level and at the asset level. A well-defined Business Continuity Policy prescribes principles to plan for climatic disruptions which could disrupt business objectives. The Corporate Business Continuity Team (CBCMT) governs and guides the standard risk assessment methodology at every location to identify risks which could potentially impact continuity of business, financial parameters like revenue & profitability as well as reputational and legal parameters. This group collaborates with various support groups in the organization to assess risks for human resources, facilities & IT infrastructure with identified impacts, probability/likelihood & controls in place. A severity matrix of Low, Medium & High impacts is defined and a defined crisis management group is vested with the responsibility to respond, recover, resume, return & restore from these situations. The detailed climate modeling and impact assessment exercise will help in further calibrating our risk management program.

Energy efficiency & GHG mitigation

Science based target setting and recalibration of climate goals: We have used the science based target setting framework from WRI (World Resource Institute) that tries to align with the 2015 Paris agreement which aims to limit global warming to below 2 degrees celsius from pre-industrial levels. We have undertaken a recalibration of our greenhouse gas emission targets to account for two organizational accounting changes – the first due to divestment of our overseas customer data center business to Ensono and the second based on requirements of GHG protocol standard of accounting all leased/rented office spaces emissions under Scope 3. Considering 2017 as the base year, we have set medium term targets till 2022 and 2030 and longer term targets till 2040 and 2050. The following goals have been set for the period FY 2018 to FY 2022:

a. Absolute Scope 1 and 2 GHG emissions – emissions reduction of 23,700 tonnes for offices.

b. Energy Intensity in terms of EPI (Energy Performance Index) - Cumulative reduction of 7.8% in EPI over 5 years c. GHG Emission Intensity (Scope 1 and Scope 2) on Floor Area (FAR) basis - Cumulative reduction of 16 % in GHG intensity from 117 Kg eq./ Sq. Mt. (kgpsm) to 98 CO2 kgpsm of CO2 –eq

d. Renewable Energy (RE)- Increase renewable energy procurement by 55% to a target of 120 million units in 2021-22

Performance against goals

Absolute Emissions: The absolute Scope 1 and 2 emissions (India) for FY 2019 have decreased by 40% from 1,61,858 to 1,17,290 tonnes - a reduction of over 44,500 tonnes. This is primarily due to significant drop in Scope 2 emissions by 29% due to energy efficiency improvement of nearly 18% as well as increase in share of in renewable energy procurement from 33% to 40% . In addition our India data center emissions have reduced significantly due to reduction in capacity utilization and divestment in the middle of the year.

The dashboard below provides a summary of our Global and India GHG emissions, including data centres. In accordance with the GHG protocol, from 2016-17, we have reclassified leased offices (upstream and downstream) as part of Scope-3. The figures are net emissions for all years, after considering zero emissions for renewable energy procured.

Emissions Intensity: Our India office space emissions intensity (Scope 1 and Scope 2) is at 71.3 Kg eq. per CO2 Sq. Mt. per annum, a decrease of nearly 30 % from FY 2018. Concomitantly the global people based emissions intensity is down by more than 29% to 0.85 tons per person per annum.

Energy Consumption: The overall energy consumption from Scope 1 and 2 boundaries (operational and financial control) is 900.8 million Mjoules, compared to 1344.3 million Mjoules in the previous year, a reduction of 33%. The total energy consumption, electricity and back-up diesel generated, for office spaces in India is 225 million units (including leased spaces globally this is 265 million units). Our overseas data center business was divested before the reporting year. Data centers in India, till their divestment contributed to another 5.1 million units.

For India operations, about 98 million units constituted renewable energy procured through PPAs (Power Purchase agreements) with private producers. Of this 92 million units is with green attributes (zero emissions). Another 10 million units is from renewable resources for our downstream leased space. In total renewable energy in our portfolio is 108 million units.

Energy Intensity: EPI for owned office spaces, measured in terms of energy per unit area has decreased by around 18.5% to 142 KwH units per sq. meter per annum. The absolute energy has reduced by 14% for the reporting year. The office space has increased by 5.3% in the reporting year.

Scope 3 Emissions: A summary of our Scope 3 emissions (other indirect sources) is provided below. Out of the 15 categories of scope 3 reporting as per the new GHG corporate value chain standard, we are currently reporting on all of the 8 categories applicable to us Downstream Scope 3 emissions: We have moved some facilities to a subleased model in the middle of the reporting year. This will be reported separately from the next year.

The table below shows the applicability and current reporting coverage across our operations for the major Scope 3 categories

Scope 3 Emissions Category Current Reporting, Coverage within IT business eq. Tons of CO2
Purchased goods and services Based on purchase ledger for FY 2018 and application of econometric input-output model for different categories and business activities: 82,246
Fuel- and energy-related activi- ties (not included in scope 1 or scope 2) Well To Tank (WTT) and Transmission and Distribution (T&D) losses globally 76,659
Upstream transportation and distribution Not Reported, as not material
Waste generated in operations For India operations (85% coverage) 760
Employee commuting For India operations, which represents nearly 85% of footprint 79,160
Business travel Global. Includes air, bus, train, local conveyance and hotel stays 117,819
Upstream leased assets (Leased office space for Wipro use) Leased offices spaces in India (10,162 tons) and overseas eq) 24,302
Downstream leased assets (Office space leased out) (14,140 tons CO2 Included in Scope 1 and 2 (transitioned mid year)
Total 380,946

Total Emissions: The overall emissions across all scopes is 498,236 tonnes. Within this, the main contributors to our GHG emissions are: Electricity – Purchased and Generated (22.1%), upstream fuel and energy emissions (15.4%), Business Travel (23.6%) and Employee Commute (15.9%). Leased office spaces contribute to 4.9% of emissions.

Wipros electronics city campus was awarded the Greenco Silver Rating by CII-GBC (Green Business Center). We were the first campus in IT Services sector to have received the award. The rating is provided based on 700 points performance covering energy efficiency, water conservation, renewable energy, GHG emission reduction, waste management, material conservation, green supply chain and other innovations.

GHG Mitigation Measures

Our five year GHG mitigation plan consists of three key elements – Energy Efficiency (Reduce), Renewable Energy (RE) Purchase (Replace) and Travel Substitution (Reduce and Replace); of this, RE procurement will contribute the maximum, 80% share to GHG emission mitigation strategy for Scope 1 and 2.

Energy Efficiency: These measures include new retrofit technologies to improve Chiller and Air Handling Units (AHUs), integrated design and monitoring platforms. The Global Energy command centre aggregates Building Management System inputs on a common platform to optimize operational control and improve energy efficiency. At one of our campuses, we have seen a 15% YoY reduction in absolute energy consumption. This has been achieved by operating the plant in auto-mode (based on real time demand), performance monitoring of equipment and optimization of air-water balance in chiller plant - resulting in improved thermal comfort.

Global Energy Command Center

Since 2007, we have been working on a server rationalization and virtualization program, through which we have decommissioned old physical servers and replaced the processing capacity with virtualization technology on fewer numbers of servers. As of March 2019, we have 6,750 virtual servers (4,780 in March 2018) running on 386 physical servers which contributes to an energy savings of approximately 29 million units in the reporting year. The savings showed an increase of 44% over the previous year. We have enhanced our Virtual Desktop Infrastructure (VDI) capacity to 8,000. VDIs provide high capacity scalable infrastructure with On Demand provisioning, High Availability and High Performance Computing environment. Out of this, we have enabled 6,300

VDIs across two of our campuses in the year. Thin clients consumes less energy (80% less) compared to Desktop, resulting in savings of 0.75 million units. Over a 5 year period, energy efficiency initiatives have resulted in savings of 140 million units (based on per capita consumption).

RE procurement: For the reporting period of FY 2019, RE purchase contributed to approximately 92 million units or 40% of our total India energy consumption. Our target for next year is 105 million units. RE procurement has

cumulatively helped avoid emissions of 330,000 tons of CO2

eq. over a 5 year period.

Rooftop Solar and Captive RE: The rooftop Solar PV installations at 6 of our campuses followed by extensive use of solar water heaters in our guest blocks and cafeterias have resulted in equivalent savings of 1.54 million units of grid electricity in the reporting year

Business Travel: The IT services outsourcing model requires frequent travel across the delivery life cycle to customer locations, mainly overseas, and contributes to around 1/5th of our overall emissions footprint. This includes travel by air, bus, train, local conveyance and hotel stays. Policies on usage of different modes of travel based on distance and time taken, need and budget-based travel and increasing focus on processes which enable remote working and collaboration are some of the cost and process optimization measures implemented over past few years. We have seen an air travel footprint reduction of around 21% compared to FY 2018.

Employee Commute: Employees have various choices for intra-city commuting. In addition to company arranged transport (36%), employees owned cars & two wheelers contribute to 12% and other modes of transport including public transport account for the balance.

Over the past few years, we have taken steps to facilitate a shift towards improved access to public transport for employees (buses, commuter trains) and carpooling. Our car pooling initiative launched through a third-party mobile app based partners in July16 in Bengaluru has now scaled and expanded to 8 other locations in India. With this, we now have 74,000 registered users across locations. Around 9 Million kms of rides were shared in the reporting year saving equivalent emissions

2100 tons of CO2

We became the first major Indian business to join EV100 in April 2018, a commitment to transition our global fleet to electric vehicles (EVs) by 2030. EV100 is a global initiative by The Climate Group bringing together forward-looking companies committed to accelerating the transition to electric vehicles (EVs). In the current year (since July 2018), 2.0 Million Kms across 33,000 trips have been covered in Hyderabad, the first location where we have started the program.

IT infrastructure enablers like anytime direct connectivity access to office intranet applications, secure personal device connectivity through the BYOD initiative (Bring Your Own Devices) are other key steps in enabling more flexible work place options.

Water efficiency and responsible use

Urban water in India is a story of paradoxes and extremities. Water related risks in cities range from supply shortages, equitable availability to all sections of the population to urban flooding driven by extreme weather events. This is symptomatic of a failure in urban planning and governance of a critical resource as water. At Wipro, we view water from the inter-related lens of efficiency and conservation coupled with our role as a responsible citizen in engaging with urban water issues outside our own boundaries. Our articulated goals are therefore derived from these three dimensions.

Water Efficiency

Goals a. To improve water efficiency (fresh water use per employee) by 5% year on year b. To reduce absolute water consumption in existing campuses by 20% between FY 2016 and FY 2021

Water Responsibility

To ensure responsible water management in proximate communities, especially in locations that are prone to water scarcity. We are also collaborating on building capacity and advocacy platforms at the city level for integrated urban water management.

Freshwater recycling and efficiency

The per employee water consumption for the reporting year is 951 litres per month as compared to 991 litres in FY 2018, an improvement of around 4%. Freshwater consumption has seen a marginal increase from last year at 1518 million Liters essentially due to few leakages from aging pipeline network. Real-time monitoring pilots are being implemented in two of our campuses. Water free systems (where applicable), smart metering, optimizing heating and cooling and recycling of blow down are other initiatives being explored. However, we have achieved 18% reduction in absolute fresh water consumption from FY 2016 and are on target to exceed our target of 20% reduction by FY 2021.

We recycle 1,090 million litres of water in 27 of our major locations (vs 1,045 million litres in FY 2018) using Sewage Treatment Plants (STPs) and ultra-filtration units.

Recycled water represents 42% of our total water consumption (vs 41% in the previous year). The amount of recycled water as a percentage of freshwater extracted is around 72%, up from 69% in FY 2018. This improvement in efficiency is due to the adoption of ultra-filtration and RO projects for STP treated water at three our large locations. Of the total treated water (1090 million liters), 62% is used for flushing and 6% is used in cooling tower. The balance 32% is used for our landscapes – the quality is equivalent to freshwater (Less than TDS of 1000). Our water recycling initiatives have cumulatively saved 5030 million liters of water over a 5 year period.

Sourcing of Water: Our water is from four sources –private water (mainly ground water sourced from tanker water suppliers), municipal water supply, in-situ ground water and harvested rain water – with the first two sources accounting for nearly 98% of the sourced water. Water purchased from private sources can be traced to have been primarily extracted from ground water. Not surprisingly, ground water contributes to nearly 56% of our total freshwater consumption across cities in India – an overexploited resource which has also been largely left out of effective governance mechanisms. Our urban/ peri-urban facilities located in three states – Karnataka, Tamil Nadu and Telengana, are located in water stressed basins. The water supplied by the municipal bodies is sourced primarily from river or lake systems.

Collaborative advocacy on water

Recognizing that water is a common resource and that internal operational efficiency is inadequate when it comes to water risks, Wipro has been partnering with experts organizations, citizen groups and government bodies to address issues affecting the communities in the proximity of our locations.

Participatory Ground Water Management Program

In the last four years, the program has attempted to explore the issues of ground water in two regions of the city of Bengaluru – Sarjapur Road and Devanahalli – both of which are completely dependent on ground water and which is largely serviced by informal private players. This is representative of many rapidly developing urban and peri-urban cities in India; in Bengaluru itself around 40% of its water needs is met by ground water. Our approach was to use a science based approach to understand the hydrogeology of the area and engage communities through various platforms (citizen science, advocacy, facilitation of interventions). Phase 1 of the three year participative ground water management program in the Sarjapur-Bellandur area has been completed. Acting on insights from the detailed aquifer map of the area, we have facilitated pilots in selected residential layouts that focus on a strategic shift from deep aquifer extraction to tapping shallow aquifers in combination with a sustainable cycle of rainwater harvesting. A multi lingual web portal http://bengaluru.urbanwaters. in/ has evolved into a comprehensive repository and ready reference for matters related to urban water in Bengaluru. Phase 2 of the program is looking at Devanahalli area, a rapidly transitioning zone of the city. Engagements with town municipality, Special Economic Zone and townships in the area are progressing well with exemplar stakeholder led projects like in stream sewage decontamination pilot and community well restoration being documented and implemented. Another program we are working on is Urban Wetland Program in Bengaluru. Here we are documenting wetland design and management protocols based on various lakes in the city.

We are also considering creating a pan India urban water network for practitioners working on local water resources and citizen based governance. In Pune, we have commissioned a program to produce a citizens report on Punes aquifers and the citys groundwater footprint. The study will interface with multiple stakeholders, including the government and produce a longer term proposal on Punes urban water governance with a focus on Punes ground water and the river systems

Pollution and waste management

Pollution of air and water poses one of the most serious threats to community health and welfare. Managing these ‘commons in an urban context again requires business organizations to look beyond its own boundaries and to adopt an integrated approach.

Our waste management strategy includes a. Regular monitoring of air, water and noise pollution to operate well within regulatory norms. b. Reducing materials impact through recycling and reuse c. Arranging for safe disposal of waste that goes outside our organizational boundaries. To operationalize our strategy, we segregate and monitor waste processing across 13 broad categories and nearly 40 sub categories.

Total waste generated during FY 2019 was 6,205 tons. The summary of our performance on solid waste management (SWM) is as follows:

• Our current recycling rate is 81% (excluding construction and demolition debris). 84% of organic waste is recycled in house and the balance sent as animal feed outside the campus. Close to 100% of the inorganic waste is recycled through approved partners. 70% of the total mixed solid waste and scrap (up from 65% in the previous year) is currently recycled and the rest sent to landfills. Our target is to improve this to 80% by 2021. Biomedical and hazardous waste is incinerated as per approved methods. All our E-waste is currently recycled by approved vendors. Construction and Demolition (C&D) debris, which amounts to 10% of total waste is currently sent to approved landfills. Construction and Demolition Debris from existing operations has reduced by half due to completion of refurbishment activity across locations.

• The proportion of waste that is send to landfill (excluding construction and demolition debris) is currently at 3.4%. This is mainly mixed scrap and solid waste, which can not be further segregated and recycled. We plan to evaluate co-processing options for this category of waste in cement manufacturing.

Others: We monitor diesel generator stack emissions (NOX, SOX and SPM), indoor air quality (CO, CO2, VOCs, RSPM), treated water quality and ambient noise levels across 25 key locations every month. These meet the specified regulatory norms.

Collaborative Engagements

Zero Plastic Initiative: We generate around 120 tons of plastic waste every year. At present, this is sent to approved recyclers. However we aim to significantly reduce plastic waste by looking at close to 20+ categories and introducing process changes and engaging with suppliers. Some examples of plastic reduction initiative are replacement of single use cutlery, packing, etc.

We continue to work with Electronic City Industrial Township Authority (ELCITA) in Bengaluru on SWM issues. We continue to be part of the sub-committee on ‘Waste in the CII National Environment Committee. We are associated with "Reimagine Waste" hackathon for the past three years, being conducted in association with Indian Institute of Science, Bengaluru, Waste Ventures and other partners. We supported a study to understand the contribution of informal economy to waste and material recycling in Bengaluru. This study was done by

Hasiru Dala in association with IIHS, Bengaluru. The study report will now be disseminated through workshops and a publication.

Urban Biodiversity

Our urban biodiversity program addresses the twin aims of creating biodiversity in our urban campuses while also using it as a platform for wider education and advocacy. We have set the following goals:

• To convert five of our existing campuses to biodiversity zones

• All new campuses to incorporate biodiversity principles into their design

Wetland biodiversity zone

Our first flagship project in biodiversity was the unique Butterfly Park and wetland biodiversity zone that uses recycled water at the Electronic City campus in Bengaluru. Our second project in Pune focused on trebling the number of native species and includes five thematic gardens – Aesthetic and palm garden, Spring garden, Ficus garden, Spice and Fruit garden. This is a unique project in a corporate campus setting with a dense year-round flowering of more than 240 species of native plants serving multiple ecological purposes. In all these programs we work closely with expert partners in biodiversity, conservation, ecological design and communications. A work environment which integrates biodiverse and natural design principles has multiple intangible benefits for employees and visitors – it builds a larger sense of connectedness and emphasizes values of sensitivity and our place in the world around us. To strengthen these connects, we regularly conduct photography sessions, nature walks and plantation activities for employees and their children.

Collaborative advocacy: Our participation in advocacy on biodiversity issues is through the Leaders for Nature program from the India chapter of International Union of

Conservation Networks (IUCN). We have been supporting the "World Sparrow Day" and the "Wipro-Nature Forever Society Sparrow Awards" for the past six years. We also chair the Bengaluru chapter of CIIs Greenco program.

Bengaluru Sustainability Forum (BSF)

This forum was set up in early 2018 and convened by Wipro along with the National Center for Biological Sciences. BSF brings together civil society, academia, research institutions and government with the broad goals of fostering curated interactions between different stakeholders on issues of urban sustainability. Over the past year, the forum has curated three retreats on the themes of Urban Water, Biodiversity and Climate Change. Complementing the network building has been the small grants program for collaborative projects – nine proposals from the first two themes of urban water and biodiversity were selected.

Wipros Natural Capital Valuation Program

Valuation of natural capital externalities of a company serves multiple objectives :

a. For the company, it provides a useful anchoring reference of how large its externalities are when compared to the financial capital and value it has created for its shareholders. It also serves as a common lexicon for strategic conversations on natural capital within and outside the company b. For investors, it is an indicator of the companys risk profile when weighed against current and future environmental regulations c. For interested citizen groups, it helps provide a more nuanced understanding of the companys profile. We have been active and enthusiastic early adopters of natural capital valuation and it aligns very well with our larger emphasis on Integrated Reporting, This is the fourth year of the valuation exercise for us

Total environmental cost relating to Wipros operations and supply chain was equal to र 10,841 million in FY 2018. GHG emissions (47%), water consumption (26%) and air pollution (16%) contributed the most. The operational footprint (including business travel and employee commute) accounted for 48% ( र 5246 million) of Wipros total environmental cost in FY 2018, a 11% decrease from previous year ( र 5874 million). In supply chain, fuel and energy related activities decreased by 8% year on year and purchased goods and services increased by 12% during the same period.

The above figures are net of our positive valuation, attributable to our environmental initiatives. The biggest driver of overall environmental cost reduction by र 1,265 million – around 6% increase from र 1,152 million in FY 2017 were emission reduction activities, water recycling and renewable energy procurement. Valuation for FY 2019 is unlikely to vary significantly different and will be completed in July 2019.

Natural Capital – Relations to other capital

This disclosure is in conformance with the CDSB Framework. Due care has been taken to apply the guiding principles and comply with the reporting requirements laid out by CDSB Framework. While preparing the report, the recommendations set out by the Task Force on Climate-related Financial Disclosures were also considered. The report also aligns with the requirements of NVG Guidelines issued by MCA.