MANAGEMENT DISCUSSION AND ANALYSIS

AN INTEGRATED APPROACH

Businesses operate in a complex and ever changing environment. This environment is influenced by many macro-economic factors, rapid technology developments, dynamic stakeholder requirements and various context driven environmental and social conditions. Traditionally, corporate annual reports focus on financial performance and statutory requirements. An Integrated Report incorporates financial and non-financial information - governance, environmental and social - in a manner that can help stakeholders understand how a company creates and sustains value over the long-term.

This report is an attempt to align to the principles of International Integrated Reporting Framework developed by The International Integrated Reporting Council (IIRC), which is a global coalition of regulators, investors, companies, standard  setters, the accounting profession and NGOs promoting communication about value creation as the next step in the evolution of corporate reporting.

The Integrated Reporting (IR) Framework establishes the Guiding Principles and Content Elements that govern the overall content of an integrated report. The Guiding Principles that underpin the brparation of an integrated report and influencing the content of the report are strategic focus and future orientation, connectivity of information, stakeholder relationships, materiality, conciseness, reliability and completeness, consistency and comparability. The content elements expected of an Integrated Report are organizational overview and external environment, governance, business model, risks and opportunities, strategy and resource allocation,  performance, outlook and basis of brsentation. The resources and relationships used and affected by an organization collectively referred to as "the capitals" in this Framework form the crux of the report and these capitals are financial capital, manufactured capital, intellectual capital, human capital, social and relationships capital and natural capital.

This report provides a consolidated perspective of economic, social and environmental aspects material to our strategy and our ability to create and sustain value to our key stakeholders. The report covers the nine principles of National Voluntary Guidelines from the Ministry of Corporate Affairs - a mapping table is provided at the end of this section. The topics covered in the report were identified through a materiality determination exercise conducted in 2015-16. The methodology followed is detail in our Sustainability Report that can be accessed at <http://wiprosustainabilityreport.com/14-15/Rs.q=materiality->determination.

Identifying and understanding stakeholders, their priorities and engaging with them is key to materiality determination. At Wipro, stakeholder engagement is an ongoing process and the details are summarized in our Sustainability report. Refer to <http://wiprosustainabilityreport> com/14-15/Rs.q=wipro-and-its-stakeholders.

INDUSTRY OVERVIEW

IT Services

Fast-evolving technology landscapes, dynamic economic environments and the emergence of digital business has created a need for enterprises to look for a partner to advise, design and execute their technology transformation and support programs. Large multinational enterprises are engaging global IT Services companies who can deliver high quality service on a global scale and at competitive costs. Over the past two decades, with the emergence of the internet and inexpensive connectivity, the global delivery model of service delivery has risen to become the brferred model in sourcing of IT services, business process services and research and development services. In this period, service providers have gained technological expertise, domain competency and delivery capability by either developing organically or by acquiring companies with these competencies. Large multinational enterprises are engaging global IT Services companies to deliver high quality service on a global scale and at competitive costs.

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 Strategic Review 2016 of the National Association of Software and Service ("NASSCOM")  ("the NASSCOM Report") in FY16, IT export revenues, from India grew by 12.3% in constant currency, to an estimated $108 billion. NASSCOM expects FY17 export growth rates to be between 10% and 12%. We believe the IT Services industry has significant growth potential.

In the last few years, enterprises around the world are embracing the reality that digital transforms every aspect of business. Experiences, consumers, entire industries, business models and ways of working are all rapidly and fundamentally changing. Recognition of these trends, combined with the realization that enterprises may not be able keep up with this pace of change, has a profound impact on our clients. This requires new business models, new ways of working and integrated capability across strategy, design and technology. According to NASSCOM Perspective 2025: Shaping the Digital Revolution the Indian technology and services industry is on track to reach $200 billion to $225 billion in revenues by 2020, from a base of $143 billion in 2016, and furthermore, to reach revenues of $350 billion by 2025. The digital transformation of businesses provides opportunities for IT Services industry in providing a range of new services.

IT Products

The key components of the hardware industry are servers, desktop, notebook and tablet computers, storage devices, peripherals, printers and networking equipment. According to the NASSCOM Report, the hardware segment of the IT-Business Process Management ("IT-BPM") market in India is estimated to be $13 billion in fiscal year 2016 or 25% of the India IT-BPM industry including e-commerce. According to the NASSCOM report, the size of the hardware market in India has been stagnant at $13 billion for the last two years. Emergence of cloud computing technologies is affecting demand for IT products like servers.

BUSINESS OVERVIEW

We are one of the leading providers of IT services globally. We combine the business knowledge and industry expertise of our domain specialists and the technical knowledge and implementation skills of our delivery team leveraging our products, platforms, partnerships and solutions in our development centers located around the world.

We develop and integrate innovative solutions that enable our clients to leverage IT to achieve their business objectives at competitive costs. We use our quality processes and global talent pool to deliver "time to development" advantages, cost savings and productivity improvements.

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, global infrastructure services, analytics services, business process services, research and development and hardware and software design to leading enterprises worldwide. The markets we serve are undergoing rapid changes due to the pace of developments in technology, innovation in business models and changes in the sourcing strategies of clients. Pressures on cost-competitiveness and an uncertain economic environment are causing clients to develop newer business models. On the technology front, digital business has changed the nature of demand for IT services. Development of advanced technologies such as cloud based offerings, big data analytics, mobile applications and the emergence of social media are shifting the point of decision-making on IT sourcing within clients' organization from the traditional Chief Information Officer to newer stakeholders such as Chief Marketing Officer, Chief Digital Officer, Chief Risk Officer etc. These trends on newer business models, emerging technologies and sourcing patterns provide us with significant growth opportunities.

Our IT Products segment provides a range of third-party IT products, which allows us to offer combrhensive 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 have a diverse range of clients, primarily in the India and Middle East markets from small and medium enterprises ("SMEs") to large enterprises in all major industries.

BUSINESS STRATEGY

Our vision "To earn our Clients" trust and maximize value of their businesses by providing solutions that integrate deep industry insights, leading technologies and best in class execution".

Our ambition is to achieve $15 billion in revenue with 23% Operating Margins by 2020 in our IT Services business segment.

Technology has become increasingly central and core to enterprises across industry segments. In addition, consumerization of IT has led to blurring of boundaries between business needs and technology enablement. This has led to clear separation of priorities and shifting ownership between the Run side and the Change side of our clients' businesses.

Our strategy thus addresses our clients' Run and Change agenda. The Run Strategy is about Modernizing the Core of our clients' process and technology landscape i.e. help clients achieve significant efficiencies in their core operations through various levers in all of our core markets. The Change Strategy (i.e., Driving the Future) is focused on helping clients achieve  digital transformation enabled by 'Digital Capabilities' brought by Wipro and its partner ecosystems

1. Integrated Services

Enterprises are looking for the right partner in helping them with business outcomes. Traditionally, IT services have evolved across distinct set of services. In recent times, the expectation from vendors is to solve client's business problem leveraging domain knowledge and synergistic integration of multiple services. The emergence of 'As a service' consumption models is leading to a market demand for delivery of integrated services e.g. BPaaS (Business Process as a Service).

We have set up dedicated Integrated Services and Solutions Group (ISSG) with a mandate of integrating end-to-end technology solutions from multiple service lines like Applications, Infrastructure services and Analytics. In integrating services to solve customer's business problems, the unit will consider reference architectures, selection of tools and platform, cost effectiveness of solution and best practices. An example is the Managed File Transfer as a Service (MFTaaS) platform which is a cloud offering enabling large file transfers in organizations in a secure manner. The MFT platform has transformed B2B (business to business) enterprise file transfers for global customers including Fortune 500 customers.

2. Simplification

Enterprises are focused on cost reduction with improved quality of service and reliability, coupled with variable pricing arrangements. Wipro's approach to achieve enterprise objectives is to deliver simplification of client technology landscape through consolidation, elimination and automation. We are building automation assets covering Application Development and Management services. Our aim is to offer value added solutions through portfolio rationalization, modernization, cloud migration and SaaS / PaaS offerings. We focus on target operating model with capabilities such as Cloud Ready AMS, Crowd Sourced AMS, and Digital Ready AMS towers.

3. Hyper-Automation

Our focus is to help clients achieve their 'Run' goals through significant cost optimization in operations by deploying cutting edge platforms and technologies that drive Hyper-automation and achieve industrialization of service delivery.

Hyper automation is a focused initiative for us to drive, not only the delivery productivity, but also the new way of work as we see Cognitive and Robotic process automation (RPA) drastically changing traditional IT delivery model. In FY 2015­2016 we have done successful Proof-of-Concept (PoC) in this area across large clients. In FY 2016-2017 we plan to do large scale roll out across various archetypes, namely infrastructure and application managed services, application development and testing services.

We developed Wipro HOLMESTM, a Cognitive AI Platform with a rich set of cognitive computing services based on open source software. It is focused towards solving key enterprise business use cases by injecting cognition into IT and Business processes. Wipro HOLMESTM enables development of various types of AI applications like Intelligent Virtual Agents, Anticipatory and Predictive Systems, Cognitive Process Automation, Visual Computing and Human Computer Interface, Knowledge Processing Systems. The automation platform is backed by the approach to deliver simplification in IT and Operations landscape through consolidation, elimination and automation.

4. Alliances

We have a dedicated unit to deepen and widen alliance ecosystems to drive creation of new markets and solutions, expand in key verticals/geographies and drive Go-To-Market (GTM) outcomes. We have classified alliances as follows:

• Strategic Alliances: Multiple product lines with significant business volume and potential.

• Growth Alliances: Single practice alliances.

• Niche Alliances: Niche products with differentiated solutions.

5. Localization

Key geographies such as Continental Europe, Canada, Latin America, Africa and Asia-Pacific region are emerging as areas of growth for the IT services industry. We believe that commitment to these geographies is important in growing our business.

We are driving a higher localization in all our key markets. In Continental Europe, we enhanced our local brsence through acquisition of Cellent AG, an IT Services company serving Germany, Austria and Switzerland. The acquisition has stabilized and the traction is positive. We are enhancing local delivery capability at multiple locations. We are investing dedicated efforts in growth markets like Latin America, Canada and Africa. We expect locals as a percentage of the workforce to increase as we execute on this theme and diversity is a key strategic priority as part of our globalization.

We are also taking many local initiatives in engaging with the local industry, universities, community and entering into partnerships with local entities.

6. Digital and Advisory

With clients across industries driving adoption of Digital and leading with Digital transformation, expectations from service providers are to partner and enable organizations design, strategize and partner in executing through the transformation process. In addition as Enterprises go 'Digital', business stakeholders are playing a key role in influencing and driving technology decisions given the core role of Digital technologies in enabling businesses go Digital.

Thus, as clients increasingly transform to become 'Digital providers' of products and services, we continue to invest and build capabilities in Digital Strategy, Design, Architecture and Engineering. These capabilities help Business and IT stakeholders achieve Digital goals leveraging the breadth of talent at Wipro across superior data analytics, engineering and design.

Our vision of the Digital business across advisory, design and technology is securing mindshare amongst existing and new customers. We believe Consulting capabilities in Business and IT Strategy, Functional and Process Excellence are critical to the Advisory offering in Digital along with design and technology pillars. With this in view, we have aligned our Consulting services with the Digital unit to further boost the capabilities of both units.

Our acquisition in the Digital and Strategic Design space, Design it, has integrated well with our digital unit. Harmonizing teams, cultures and capabilities has created differentiated positioning in the market for us. Our clients are beginning to see the benefit of design and engineering working together to deliver remarkable customer experiences at speed and at scale. The joint GTM is securing synergy deal wins for us. For example, the design capability combine d with our technology skills helped us win a large digital engagement with a global bank.

In 2015-16, we launched a program to train approximately 10,000 professionals in digital technologies. We are ramping up this capability significantly to cover another 20,000 professionals in 2016-17. Our focus is to build high caliber teams covering high end engineers, top end coders, digital architects, data scientists, digitization consultants, service design experts, specialized digital delivery practitioners, industry focused strategists and solution experts. Keeping in line with this priority, we have launched the Digital Academy to train super specialized engineering talent and are running specific enablement programs to transform customer facing and delivery teams to be 'Digital' ready. We opened Digital pods in London and New York to offer enhanced transformation services to global customers.

7. Non-Linearity

Given the need to address business challenges with speed and to differentiate amongst service providers, we continue to drive use of intellectual property to drive non-linearity in our business.

We have a significant thrust to drive non-linearity through investments in Intellectual Property in the form of products (like Gallagher, Opus, Healthplan Services (HPS), Promax, platforms (like Wipro HOLMESTM), frameworks and solutions.

We have formed a dedicated unit to drive non-linear revenue growth by leveraging IP based products, platforms and solutions as well as through automation and innovative commercial constructs and delivery models.

Wipro HOLMES™ continues to receive strong adoption with 18 engagements across diverse industry segments. During the year ended March 31, 2016, we successfully completed a pilot engagement in deploying and implementing an eKYC Wipro HOLMES™ solution in a Wall Street Bank.

We have filed for a number of patents on Wipro HOLMES™ and initiated two new research programs in collaboration with leading universities. Overall during FY 2015-2016 we filed for 514 patents and we now own over 1,085 patents (including patent applications) in nine jurisdictions.

8. World class Ecosystem

Given the pace and scale of disruption in the technology landscape, it is imperative to have a proactive and structured approach to work with the innovation ecosystem. Our ecosystem strategy is defined around building and nurturing four types of ecosystem plays through Start-ups, M&A, Consulting partnerships and academia partnerships.

Start-up partnerships

As part of a start-up engagement model, we have invested in building a world class ecosystem through a US$ 100 million corporate venture capital fund, Wipro Ventures, aimed at investing in cutting edge start-ups in areas such as Digital, Internet of Things (IoT), Big data, Open source, Cybersecurity and Artificial Intelligence (AI). In 2015-16, Wipro Ventures has seen strong traction and scale. We have made 6 investments with a cumulative spend of US$ 15 million and a further committed spend of US$ 5 million in FY16 in start-ups working in Big Data and Analytics, Artificial Intelligence, the Internet of Things, Mobility, Cloud Infra, Fintech and Security - technologies that are reshaping the future of enterprises.

M&A

Acquisitions are key enablers in building capability in industry domain, emerging technology areas, Digital and increasing 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 higher margins. We also use  our acquisition program to increase our brsence in select geographies, increase our footprint in certain large customers and pursue select business opportunities. Key acquisitions consummated during the year ended March 31, 2016 are Designit, Cellent and HPS.

Designit is a global strategic design firm, helping businesses tap into the opportunities in the digital age by turning technology into meaningful experiences. With an international team of designers, strategists, and technologists across nine offices in Denmark, Germany, Spain, Norway, Sweden, Israel, Japan and Brazil, Designit uses a strategic Design Process to design unified product-service experiences that bring end-user value, business value and business transformation. This acquisition will complement the capabilities of an established design leader with Wipro's engineering heritage and bring compelling value to the clients. Designit's expertise in experience-driven design complements Wipro Digital's capabilities in technology, digital strategy, design, and digital architecture. Together, the two organizations become a combrhensive and scalable global digital transformation partner to improve customer experience while radically digitizing business operations.

Cellent is a leading IT consulting and software services company offering holistic innovative IT solutions and services in the DACH region of Germany, Austria and Switzerland.

HPS offers market-leading technology platforms and a fully integrated Business Process as a Service (BPaaS) solution to Healthcare Insurance companies (Payers) in the individual, group and ancillary markets. The acquisition would be closely aligned with Wipro's key levers for growth, which is, to dominate the services market through platform led or BPaaS offerings. Wipro would gain the competitive, early mover advantage in the high growth public and private exchange space for individual, group and ancillary markets. This would also strengthen Wipro's Payer portfolio with access to HPS's Payer clientele.

During the year ended March 31, 2016, we also announced our intent to acquire the Viteos Group. Viteos Group service portfolio includes shadow-accounting services, middle and back-office outsourcing services. This acquisition will expand Wipro's capital markets portfolio in fund accounting services and enhance Wipro's Business Process Services capabilities.

Consulting partnerships

Clients are seeking to work with partners who can answer strategic questions and execute on the mandate. We are exploring key partnerships in areas such as Digital that can complement our strong capabilities in design, engineering and technology.

Academia partnerships

The objective of academia partnerships is to drive a research oriented/futuristic technology research and capability build aligned to academia objectives. Our focus is to work with academia in United States, Europe, Israel and India in the fields of computer and electrical engineering. There are three models of engagement, project, program and joint research. We have current partnerships with universities and industry associations and our endeavor is to expand these partnerships in the defined areas aligned to our strategic areas of interest.

9. Invest to lead in the future

Given that the disruption in technology is resulting in newer opportunities in the areas of Internet of Everything ("IoE"), Software Defined, Cybersecurity, Open stacks and AI, we continue to invest in emerging technologies.

IoE

• We have a dedicated unit in place to address the IoE opportunity by delivering platforms, framework and solutions based on use cases across industries such as Manufacturing, Retail, Utilities and Healthcare segments (e.g., Heavy Equipment Asset Tracking).

Software Defined

• We have significantly invested in building a center of excellence to showcase our capabilities in SDX (Software Defined Everything). There is a significant focus to enhance skill sets across Software Defined Storage, Software Defined Network, Software Defined Data center and Cloud.

Cybersecurity

• Given the rise of connected devices and transition to cloud, the impact of threats will continue to increase since threat attack area is increasing beyond the enterprise. We have invested in building deep capability to secure our customers' assets and IT estate from cyber threats.

Open Source

• We are leveraging the open source ecosystem to drive thought leadership through community and industry partnerships. We have a dedicated open source council set up to drive collaboration and seamless execution of open source services (e.g., Open Datacenter, Open Apps and Open Network) and solutions across service lines.

To enable effective implementation of the Run and Change strategies, we are making focused investments in brand building, creating the right organization structure, processes, technology, people and driving significant sales transformation through a number of focused programs.

Driving differentiation and leadership through our people

We believe that our employees are the backbone of our organization and a key differentiator in the global market for IT services and IT products. We are committed to recruiting and training highly skilled employees, service providers and leaders. Our aim is to build a best in class global leadership team and provide our employees with attractive opportunities for career enhancement and growth. We continue to design and implement processes and programs to foster people development, leadership development and skill enhancements among our global team. It is our aim to be a diverse global company that not only serves clients but also empowers our employees worldwide to increase their expertise beyond their industry peers.

BUSINESS MODEL

Business segment overview

Our business comprises of the IT Services and IT Products segments. To align ourselves with industry trends, we elected to start providing our IT Services segment revenue and results by industry verticals beginning with the year ended March 31, 2014. Our industry verticals are subject to change and may vary depending on industry trends. Please see Note 29 of the Notes to Consolidated Financial Statements for additional information regarding our segments and IT Services verticals.

IT SERVIC  

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, custom application design, development, re-engineering and maintenance, systems integration, package implementation, global infrastructure services, business process services, cloud, mobility and analytics services, research and development and hardware and software design. We offer these services globally leveraging our products, platforms and solutions through a team of over 170,000 employees using our Global Delivery Model. Our key service offerings are outlined below:

• Digital: At Wipro Digital, the digital arm of Wipro, we dream, design and build people-centered and human-shaped experiences for a digital world. We are an innovation-led, digital transformation partner. We focus on the insights, the interactions, the integrations, and innovations that matter for brands, businesses and their customers. Combining the expertise of our acquired design firm, Designit® and our Buildit™ engineering and continuous delivery group, we bring strategic design and strategic tech to help reimagine product-service experiences around the customer.

• Our multi-disciplinary, purpose-built team includes experts in digital and marketing strategy, service design, user interaction, technology and agile development and more. Our extensive experience solving complex business, marketing, and technology problems in industries including finance, manufacturing, media and telecommunications, retail, consumer goods, transportation, government, health and life sciences, and energy brings unrivalled capability, scale, agility and acceleration to client engagements. To learn more, visit <http://wiprodigital.com>.

• Wipro Consulting Services consults and leads organizational and business process transformation to improve performance, increase effectiveness, reduce costs and improve resilience. We introduce leading edge practices and offer business advisory, business and functional transformation, IT consulting and risk and compliance services to many of the world's leading organizations, governments and institutions. To learn more, visit <http://> wipro.com/services/consulting

• Application Services: We offer integrated business solutions that span across enterprise applications and digital transformation to security and testing. We offer services designed to help customers integrate digital technologies and remain agile. While also keeping their business efficient and secure. Our service offerings include:

• Oracle Application Services: We deliver end-to-end services across the entire Oracle product spectrum including E-Business suite, Oracle Cloud Applications (HCM, CRM, ERP) and Engineered Systems.

• SAP Application Services: Our expertise spans the entire SAP product spectrum including SAP HANA, SAP Cloud Applications (SF, Ariba) Hybris, BW on HANA, and Mobility solutions.

• Connected Enterprise Services: Our solutions like Digital Customer Experience Management ("DCxM") and Encore ("Next Gen Commerce Solution") enable businesses to engage customers, drive sales, enhance customer experience and create an integrated enterprise that delivers a consistent, omni-channel customer experience.

• Cloud Application Services: We drive solutions and services for key front-office and back-office enterprise processes (HCM, CRM, ERP) by leveraging best-of-breed SaaS solution stacks and ecosystem partners. We have extensive experience in advisory, implementation, rollout, migration and application support.

• Enterprise Architecture: We assist clients in establishing the structure, processes and tools for improvements in technology governance and the metrics they need to measure the alignment of their IT landscape with their business goals. Our solution enablers, which are called 'Smarter Applications', accelerate adoption of next generation architectures.

• Enterprise Security Solutions: We help enterprises to enhance security strategy and information security posture and enable compliance programs by innovative security platforms like Risk Intelligence Center, Data Governance Center, Security Intelligence Center, Security Assurance Center and Security Management Center.

• Testing Services: We deliver functional assurance, better quality and enhanced performance with our offerings like risk-based testing, cloud testing, business assurance, ready to deploy tools such as model based testing and test lifecycle automation and industry point solutions such as Digital Assurance platform. To learn more access <http://www.wipro.com/> applications/

• Service Transformation Group: The Service Transformation Group is instrumental in evaluating the market trends and identifying and incubating the next generation technologies which can help customers to transform their business and technology landscape in next 1-3 years. The group specializes in technologies like Open Source, Google Enterprise Technologies, Amazon Web Services, Apple technologies, Agile and DevOps, Blockchain and SaaS/PaaS based innovative platforms like Treasury Decision and Analytics, Next Generation Customer Experience, Mobile Payments etc. by deeply engaging with customers, co-innovating with partners and collaborating with the industry ecosystem.

• Global Infrastructure Services ("GIS"): GIS is an end-to-end IT infrastructure and management service provider that helps global clients in their digital evolution. From Business Advisory, Cloud Migration, Data Center Transformation, Workplace Transformation, Networks, Managed Services to System Integration - our infrastructure services and solutions suite covers it all. This unit has a global team of over 32,000 infrastructure consultants. It has a culture of innovation and a startup mindset, and is backed by a strong network of strategic technology partners, integrated ServiceNXT™ operation centers, 14 data centers as well as Wipro's homegrown automation platform Wipro HOLMES™. To learn more access <http://www.wipro.com/infrastructure->services/

• Product Engineering Services Group ("PES"): PES facilitates breakthrough product and engineering services transformations across all major industry verticals. Our specialized team of over 10,000 professionals combined with in-house innovation labs deliver end to end Engineering R&D services ranging from product strategy and proof of concept to product development, testing and compliance and outsourced manufacturing. Over the years, PES has revolutionized product engineering at numerous global corporations by building innovative customer experiences, personalizing products for new markets, integrating next-generation technologies, facilitating faster time to market, and ensuring global product compliance. In our bid to make the world a connected and smarter place, the group is making significant developments in new age technology paradigms such as the Internet of Things, Cloud platforms, 3D Printing, Virtualization, Smart devices and Artificial Intelligence. To learn more access <http://www.wipro.com/product->engineering/

• Analytics: At Analytics, the spectrum of offerings cover the entire length of the Data-Information-Insight Supply Chain including artificial intelligence, machine learning, advanced analytics, data and information management and big data platforms. We focus on developing end-to-end analytics and information strategies for businesses by using our advanced analytics capabilities that leverage our br-built industry and process specific solutions. The service offerings include:

• Data Platform Engineering: Data Platform Engineering services focuses on delivering accelerated platform development catering to the areas of Internet Scale Application, Big Data Platforms, Next Generation Infrastructure platforms and High Performance Computing solutions. It builds complete solutions in the areas of large scale service delivery systems, Big Data systems and real-time low latency engineered systems for IoT, trading, advertising and other industrial applications - either via on brmise or cloud based platforms. It also delivers products such as the Big Data as a Service to drive non-linear revenues and Hybrid Cloud Integrations and Engineering services with Digital Services Hub.

• Big Data Analytics: The Big Data Analytics practice creates and delivers analytical platforms and solutions which help organizations make forward looking decisions in real-time or near-real time. To learn more access <http://www.wipro.com/big-data/>

• Information Management: The Information Management practice is dedicated towards developing and enabling robust information strategies for enterprises with capabilities that cut across lifecycle and usage of data. To learn more access <http://www>. wipro.com/information-management/

• Business Intelligence: The Business Intelligence ("BI") practice is focused on helping businesses unleash the value from their data and provide timely, contextual and relevant actionable insights rendered through rich and interactive visualizations. Powered by accelerators, metadata extractors and visualization frameworks the BI tools offered by Analytics help decision makers make informed decisions, identify new business opportunities and create sustainable competitive advantage. Joint go-to-market partnerships with leading vendors in the space have helped the practice in building competency and innovation to develop intellectual property like Snipe and DNAi that directly address common business obstacles. To learn more access <http://www.wipro.com/analytics/solutions/> wipro-snipe-bi-transformation-solution/

• Database: The Database practice focusses on enriching Analytics' competency in IT architecture and consulting. Offerings from the practice include Database Architecture and Consulting, Database Migration Services, Performance Engineering and Data Modelling.

• Business Process Services ("BPS"): BPS is a global leader in providing next generation technology-led business process services to global enterprises. We offer powerful business intelligence and reporting capabilities which help in improving business visibility and allow business leaders to react quickly to evolving business needs. Wipro BPS is harnessing the power of new and emerging technologies to create breakthrough applications and solutions. Our key non-intrusive industry agnostic technology differentiators:

• Enterprise Transformation: A suite of combrhensive solutions suites that delivers standardized service, touching all engagements of a customer lifecycle through simplification, automation, intelligence and immersive experience, supported by a cross trained team of 100+ consultants, our proprietary solutions, platforms and alliance with leading solution providers for automation solutions.

• Base)))™: Wipro's Business Operations platform comes with business and operations analytics, br-built process libraries, business design and process management components to manage today's business operations. To learn more access <http://www.wipro.com/business-process/platform/> base-platform/base-prism/

• Next Gen Customer Experience (NGCE): NGCE collates structured and unstructured data to brsent a 360° view of the customer and helps deliver a superior customer experience. It provides actionable recommendations in real-time to empower your customer service team to deliver best-in-class customer experience on every interaction

• Robotics Process Automation (RPA): RPA serves the next-generation BPS which delivers beyond labor arbitrage to improve processes and accuracy by eliminating human error and optimizing cost. To learn more access <http://www.wipro.com/business->process/services/robotic-process-automation/

• BPaaS: Wipro remains committed to deliver best of technology led services to its customers. Wipro's Business-Process-as-a-Service (BPaaS) delivery model allows standardized, yet highly configurable processes for quick deployment and use. To learn more access <http://www.wipro.com/bps/>

INDUSTRY VERTICALS

For the year ended March 31, 2016, the IT Services segment primarily consists of IT Service offerings to our customers organized by industry verticals as follows:

1. Banking, Financial Services and Insurance ("BFSI"),

2. Healthcare and Life Sciences ("HLS"),

3. Retail, Consumer, Transport and Government ("RCTG"),

4. Energy, Natural Resources and Utilities ("ENU"),

5. Manufacturing ("MFG") and

6. Global Media and Telecom (GMT).

Effective April 1, 2016, in order to provide strategic focus and draw synergistic advantages among our sales, marketing and business development teams, we realigned our industry verticals. The Communication Service Provider business unit was regrouped from the former GMT industry vertical into a new industry vertical named "Communications". The Media business unit from the former GMT industry vertical has been realigned with the former RCTG industry vertical which has been renamed as "Consumer Business Unit" industry vertical. Further, the Network Equipment Provider business unit of the former GMT industry vertical has been realigned with the Manufacturing industry vertical to form the "Manufacturing and Technology" industry vertical. The revised industry verticals are as follows:

1. Banking, Financial Services and Insurance ("BFSI")

2. Healthcare and Life Sciences ("HLS")

3. Consumer Business Unit ("CBU")

4. Energy, Natural Resources and Utilities ("ENU")

5. Manufacturing and Technology ("MFG & Tech")

6. Communications ("Communications")

Our IT Services business is organized into six industry verticals:

• Banking, Financial Services and Insurance ("BFSI"): BFSI is our largest business unit in terms of revenue, and includes clients in banking, insurance, and securities and capital market industries. Our banking practice has partnered with many of the world's leading banks. Our insurance practice has been instrumental in delivering success to our insurance  clients who are part of Fortune 100 insurance companies through our solutions accelerators, intellectual property, end-to-end consulting services, and flexible global-delivery models. We have partnered with leading investment banks and stock exchanges worldwide, providing state-of-the-art technology solutions to address business priorities including operational efficiency, cost optimization, revenue enhancement, and regulatory compliance.

To learn more, access <http://www.wipro.com/banking> , <http://www.wipro.com/insurance>, <http://www.wipro.com/> securities-capital-markets

• Healthcare and Life Sciences ("HLS"): At HLS, it is our ambition to change the face of modern healthcare by building a patient centric interconnected health ecosystem across payers, providers, e-health and government funded programs, bio-pharmaceutical and medical devices. Our integrated portfolio of solutions, platforms and services in applications, infrastructure and business process outsourcing enables our clients to enhance engagement with their end customers - the patients and providers by reimagining and redesigning experiences across channels of consumption in this digitized world. We enable our clients to provide accessible, affordable, accountable care through automation and smart IT; and revitalize innovation for therapeutic areas through cognitive support and product engineering while staying compliant, reducing risk and maintaining quality. To learn more, access <http://www.wipro.com/healthcare> , <http://www.wipro.com/pharmaceutical-and-life-sciences> , <http://www.wipro.com/medical-devices>

• Consumer Business Unit ("CBU"): Our Consumer Business Unit offers a full array of innovative solutions and services to cater to the entire value chain, where the consumer is at the core, through unique blend of domain knowledge, technology expertise and delivery excellence. We provide strong consumer-centric insight and project execution skills across retail, consumer goods, media, travel and public sector. Wipro's CBU encompasses the following sectors:

• Retail: Wipro's Retail practice has deep expertise in the areas of digital transformation, omni-channel and supply chain, merchandizing, store operations, and consumer and retail insights. To learn more access <http://www.wipro.com/retail>

• Consumer Goods: Wipro's Consumer Goods business works with many of the Top Global brands across Apparel & Fashion, Food & Beverage, Home & Personal Care, Tobacco and Agribusiness. To learn more access <http://www.wipro.com/consumer->goods

• Media, Entertainment, Publishing Industries: Wipro's Media Vertical is a global partner for a wide spectrum of customers ranging across segments namely, Publishing, Education & Information Services, New Media & OTT, Entertainment, Broadcast & Sports and Advertising. To learn more access <http://www.wipro.com/media>

• Travel and Hospitality: This Vertical is a transformation partner to industry leaders across Airlines,Tour Operators, Courier, Logistics, Leisure and Hospitality segments. As an innovative integrated services player, we help clients reimagine customer experiences and deliver them through a unique blend of design and technology. To learn more access <http://www.wipro.com/> transportation

• Public Sector: Wipro empowers Public Sector organizations across the Globe in their pursuit of progress of their societies through effective use of technology. To learn more access <http://www.wipro>. com/government

• Energy, Natural Resources and Utilities ("ENU"): Our

Energy, Natural Resources, Utilities and Engineering & Construction (ENU) industry vertical has been collaborating with and serving businesses across the globe for over 15 years. Our deep domain and technology expertise has helped the business become a trusted partner to over 75 leaders in the Oil and Gas, Mining, Water, Natural Gas, Electricity, Engineering and Construction industries sbrad across North and South America, Europe, Africa, Australia, India, Middle East, New Zealand, Southeast Asia and Turkey. To learn more access <http://www.wipro.com/energy>

• Recognized by analysts as a major player in Utilities sector, we provide consulting, engineering, technology and business processes services expertise to the Utilities industry across Generation and Renewables, Transmission and Distribution, Retail, Smart Grid, Energy Trading and Risk Management (ETRM) and Health, Safety, Security and Environment (HSSE). Wipro is a strategic partner for many of the world's major oil and gas O&G companies. Strategic acquisitions have further strengthened our capabilities and brsence in the Energy sector. Our industry-leading Operational Technology and Information Technology Mining solutions focus on capital projects, unlocking the value of exploration data, building collaborative decision environments, addressing health, safety, security and environment issues, and transforming businesses with enterprise solutions. Our Engineering and Construction business has a major brsence across sectors such as oil and gas, Mining, Utilities, Airports, Ports, Transportation and Manufacturing. To learn more access <http://www.wipro.com/utilities>

• Manufacturing and Technology ("MFG & Tech"): Wipro is a strategic partner offering a portfolio of solutions and services that caters to the entire technology and manufacturing value chain of the customer. We cater to various domains like Aerospace and Defense, Automotive, Consumer  Electronics and Peripherals, Computer Software and Storage, Telecom, Network Equipment Providers, Process Manufacturing and Industrial and General Manufacturing.

Our extensive domain expertise helps cater to customer requirements across product design, manufacturing, customer experience and aftersales revenue. Our "Centres of Collaborative Excellence" strive to collaborate with the customers to build industry specific solutions that suit the customers' requirements. We have enabled creation of intelligent customer interfaces, enhanced and intuitive man-to-machine interactions, better insights through customer and industry analytics, innovation in intelligent and connected devices and customer-facing autonomic services. Customers can maximize their revenue by leveraging our IoT and connected devices solutions on the one hand and optimize their operational expenses by using our smart manufacturing solutions on the other hand. To learn more, access <http://www.wipro.com/> manufacturing

• Communications: For the past two decades, we have offered end to end IT and Engineering services to the communications service providers. The emergence of new technologies such as 4G/LTE, cloud, social networking, and smart phones has changed the way we share and consume information. In order to win in this digital world, Communication Service Providers (CSPs) have shifted their focus from technology infrastructure to value added services and the delivery of a superior customer experience. We assist clients in dealing with the business changes arising from disruptions caused by new technologies, new enterprise and consumer services and shifting regulations. To learn more, access <http://www.wipro.com/> communication-service-providers

IT PRODUCTS

In order to offer combrhensive IT system integration solutions, we use a combination of hardware products (including servers, computing, storage, networking, security), related software products (including databases and operating systems) and integration services. During FY 2013-14, we ceased manufacturing "Wipro" branded desktops, laptops and servers. We continue to maintain a brsence 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.

We provide our offerings to enterprises in all major industries, primarily in the India and Middle East markets, including government, defense, IT and IT-enabled services, telecommunications, manufacturing, utilities, education and financial services sectors. We have a diverse range of customers,

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 & Business Continuity, Data Privacy and Large Deal Execution figuring prominently in the risk charts of most organizations. To effectively mitigate these risks, we have deployed 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.

The Ombudsprocess

Wipro is committed to the highest standards of openness, probity and accountability. Having a robust whistleblower policy that employees and other stakeholders can use without fear or apbrhension is a sine non qua for a transparent and ethical company. An important aspect of accountability and transparency is a robust mechanism that allows partners, customers, suppliers and other members of the public, to voice concerns in a responsible and effective manner. What this means in concrete terms is that whenever a stakeholder discovers information that reveals serious malpractice, impropriety, abuse or wrongdoing within the organization then the stakeholder should be able to report without fear of reprisal, anyone can report a concern to the ombudsperson online at www.wiproombuds.com

In 2015-16, 1,397 complaints were received via the Ombudsprocess and the action taken cases as of March 31, 2016 was 1,337. Based on self-disclosure data, 68% of these were from employees and the balance were mainly anonymous and from other stakeholders like vendors and customers. The top categories of complaints were people processes (38%) and workplace concerns and harassment (21%). There were no cases of child labor reported. We have 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 programme against sexual harassment are conducted across the organization. A total of 111 complaints of sexual harassment were raised in the year 2015, of which 107 cases were disposed and appropriate actions were taken in all cases within the statutory timelines

FINANCIAL CAPITAL*

Assessment of Key Risks

• Global economic crisis: We derive approximately 53% 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  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 widesbrad changes in any such industry, may reduce or alter the demand for our services and adversely affect our revenue and profitability. For instance, the continued softness in global crude oil price has significantly impacted the companies operating in the energy industry, impacting revenue and profitability of our Energy, Natural Resources and Utilities industry vertical.

• Taxation Risks: Our profits for the period earned from providing services at client brmises 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 brvent 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.

• 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.

Our exposure to market risk is a function of investment and borrowing activities and revenue generating activities in foreign currency. The objective of market risk management is to avoid excessive exposure of our earnings and equity to losses.

Components of Market Risk

Foreign currency risk: A significant portion of our revenue is in U.S. 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. Apbrciation of the Indian Rupee against these currencies can adversely affect our results of operations. 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.

As of March 31, 2016, a Re. 1 increase/decrease in the spot exchange rate of the Indian Rupee with the U.S. Dollar would result in approximately Rs 1,398 million decrease/increase in the fair value of our 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 us 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. As of March 31, 2016, substantially all of our borrowings was subject to floating interest rates, which reset at short intervals. If interest rates were to increase by 100 bps from March 31, 2016, additional net annual interest expense on our floating rate borrowing would amount to approximately Rs. 1,102 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, taking into account 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, 2015 and 2016, respectively and revenues for the year ended March 31, 2014, 2015 and 2016, respectively. 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 brdetermined 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. The counterparties are primarily banks and financial institutions and the Company considers the risk of non-performance by the counterparty as non-material.

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. Management monitors the Company's net liquidity position through rolling forecasts on the basis of expected cash flows. As of March 31, 2016, our cash and cash equivalents are held with major banks and financial institutions.

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 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 these transactions 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 contracts to hedge forecasted cash flows denominated in foreign currency. As per the policy, the total hedges shall be 50% to 100% of the next four quarters of inflows in addition to select long term contracts which are beyond one year in tenor. Our net foreign exchange gains/ (losses) from continuing operations for the years ended March 31, 2015 and 2016 were Rs. 3,637 million and Rs. 3,867 million respectively.

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.

Our Hedge Book as on March 31, 2016 stood at USD 2.8 billion dollars. Our foreign exchange gains/(losses), net, comprise of:

1. Exchange differences arising from the translation or settlement of transactions in foreign currency, except for exchange differences on debt denominated in foreign currency (which are reported within finance expense, net); and

2. The changes in fair value for derivatives not designated as hedging derivatives and ineffective portions of the hedging instruments. For forward foreign exchange contracts which are designated and effective as cash flow hedges, the mark to market gains and losses are deferred and reported as a component of other combrhensive income in stockholder's equity and subsequently recorded in the income statement when the hedged transactions occur, along with the hedged items.  Please refer note 15 in 'Consolidated Financial Statements under IFRS' for further details.

Internal control systems and their adequacy

We have brsence 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 this 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 Company's policies, the safeguarding of its assets, the brvention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely brparation of reliable financial disclosures.

Revenue: In FY 2015-16 our revenue increased by 9.1%. This was driven primarily by a 10.7% increase in revenue from our IT Services segment and was offset partially by a 12.6% decrease in revenue from our IT Products segment. The increase in IT Services revenues was driven by volume growth in our Healthcare and Life Sciences industry vertical, Retail, Consumer Goods & Transportation industry vertical and Manufacturing & Hitech industry vertical as well as debrciation of the Indian rupee against the U.S. dollar.

Profitability: In absolute terms, cost of revenues increased by 11% primarily on account of increases in employee compensation due to impact of rupee debrciation, salary increases, stock compensation awarded, increase in headcount during the year (including increase through business combinations), and increase in subcontracting/technical fees, which was partially offset by reduction in cost of hardware and software.

As a result of the foregoing factors, our gross profit as percentage of our total revenue decreased by 119 basis points  (bps).

Selling and Marketing Expenses: Our selling and marketing expenses as a percentage of total revenue increased marginally from 6.5% for the year ended March 31, 2015 to 6.6% for the year ended March 31, 2016. In absolute terms, selling and marketing expenses increased by 11.3%, primarily on account of increases in employee compensation due to impact of rupee debrciation, salary increases, stock compensation awarded,  increase in headcount during the year, advertisement and brand building expenses, debrciation and amortization and travel expenses arising from intangible assets recognized through business combinations.

General and Administrative Expenses: Our general and administrative expenses as a percentage of revenue increased marginally from 5.46% for the year ended March 31, 2015 to 5.51% for the year ended March 31, 2016. In absolute terms, general and administrative expenses increased by 10.1%, primarily due to increases in employee compensation, provision for doubtful debts, facility expenses and legal and professional fees.

Results from Operations: As a result of the foregoing factors, our operating income increased by 1.7%, from Rs 95,423 million for the year ended March 31, 2015 to Rs 97,021 million for the year ended March 31, 2016. However, our results from operating activities as a percentage of revenue (operating margin) decreased by 138 bps from 20.2% to 18.8%.

Finance Expenses: Our finance expenses increased from Rs 3,599 million for the year ended March 31, 2015 to Rs 5,582 million for the year ended March 31, 2016. This increase is primarily due to an increase of Rs 1,341 million in exchange loss on foreign currency borrowings and related derivative instruments as well as an increase in interest expense by Rs 642 million on account of increased borrowings during the year ended March 31, 2016.

Finance and Other Income: Our finance and other income increased from Rs 19,859 million for the year ended March 31, 2015 to Rs 23,280 million for the year ended March 31, 2016. Interest and dividend income increased by Rs 4,723 million while gain on sale of investments decreased by Rs 1,302 million during the year ended March 31, 2016 as compared to the year ended March 31, 2015. This net increase was due to an increase in cash available for investments due to enhanced cash flows.

Taxes: Our income taxes increased by Rs 681 million from Rs 24,624 million for the year ended March 31, 2015 to Rs 25,305 million for the year ended March 31, 2016. Our effective tax rate  increased marginally from 22.0% for the year ended March 31, 2015 to 22.1% for the year ended March 31, 2016.

Profit: Profit attributable to non-controlling interest has reduced from Rs 531 million for the year ended March 31, 2015 to Rs 492 million for the year ended March 31, 2016.

As a result of the foregoing factors, our profit attributable to equity holders increased by Rs 2,394 million or 2.8%, from Rs 86,528 million for the year ended March 31, 2015 to Rs 88,922 million for the year ended March 31, 2016

Revenue - IT Services: In FY 2015-16 our revenue from our IT Services segment, in INR terms, increased by 10.71%. In absolute terms in INR, we experienced growth across most IT Services industry verticals, particularly in Healthcare and Life Sciences industry vertical, Retail, Consumer Goods & Transportation industry vertical and Manufacturing & Hitech industry vertical. In terms of USD revenues, the growth was 3.7%. In terms of USD, exbrssed in constant currency, the growth was 7.6%. In our IT Services segment, we added 261 new customers during the year ended March 31, 2016 across all industry verticals including customers added on account of acquisitions. Revenue from Product Engineering, Global Infrastructure Services, Business Process Services and Analytics grew strongly during the year. Amongst geographic segments, India and Middle East business and Americas regions showed strong growth.

During the year, we saw significant softness in the Oil & Gas business due to the impact of low oil prices, which affected our revenue growth in US dollar. However, in absolute terms in INR, we experienced growth across all IT Services industry verticals.

Profitability: Our gross profit as a percentage of our revenue from our IT Services segment decreased by 163 bps. The decrease in gross margin as a percentage of revenue is primarily attributable to an increase in employee compensation cost during the year ended March 31, 2016 as compared to year ended March 31, 2015 as part of our annual compensation review and annual progression cycle, partially offset by the debrciation in the value of the Indian rupee against foreign currency.

Selling and Marketing Expenses: Selling and marketing expenses as a percentage of revenue from our IT Services segment increased from 6.37% for the year ended March  31, 2015 to 6.45 % for the year ended March 31, 2016. In  absolute terms, selling and marketing expenses increased Rs 3,366 million. This increase is primarily attributable to an increase in the employee compensation cost due to increased compensation as part of our annual compensation review and annual progression cycle and investments in manpower capacity and amortization of intangibles acquired through business combinations.

General and Administrative Expenses: General and administrative expenses as a percentage of revenue from our IT Services segment decreased from 5.68% for the year ended March 31, 2015 to 5.57% for the year ended March 31, 2016. In absolute terms, general and administrative expenses increased Rs 2,146 million. This increase is primarily due to an increase in the employee compensation cost due to increased compensation as part of our annual compensation review and annual progression cycle.

Segment Results: As a result of the above, segment results as a percentage of our revenue from our IT Services segment decreased by 172 bps. However, in absolute terms, the segment results of our IT Services segment increased by 2.12%.

Performance against Guidance: Historically, we have followed a practice of providing revenue guidance for our largest business segment, namely, IT Services. The guidance is provided at the release of every quarterly earnings when revenue outlook for the succeeding quarter is shared.

1) For the purpose of 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 Rs. 33,928 million and Rs. 29,642 million for the years ended March 31, 2015 and 2016, respectively. Please see Note 29 of the 'Consolidated Financial Statements under IFRS' for additional details.

Revenue: Our revenue from the IT Products segment decreased by 12.60%. 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 103 bps primarily on account of product pricing brssure and the debrciation of Indian rupee resulting in higher product costs.

Selling and Marketing Expenses: Selling and marketing expenses as a percentage of revenue from our IT Products segment increased from 3.76% for the year ended March 31, 2015 to 4.29% for the year ended March 31, 2016. In absolute terms, selling and marketing expenses decreased by Rs 5 million.

General and Administrative Expenses: General and administrative expenses as a percentage of revenue from our IT Products segment increased from 3.29% for the year ended March 31, 2015 to 5.73% for the year ended March 31, 2016. In absolute terms, general and administrative expenses increased by Rs 585 million primarily on account of increases in the provision for doubtful debts in our India business.

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 12 of our Notes to the Consolidated Financial Statements for additional details on our borrowings.

As of March 31, 2016, we had cash and cash equivalent and short-term investments of Rs 301,432 million. Cash and cash equivalent and short-term investments, net of debt, was Rs 176,211 million. As of March 31, 2014, 2015 and 2016, our cash and cash equivalents were primarily held in Indian Rupees, U.S. Dollars, United Kingdom Pound Sterling, Euros, Australian Dollars and Canadian Dollars. Please refer to "Financial risk management" under Note 15 of our Notes to the Consolidated Financial Statements for more details on our treasury activities.

In addition, we have unused credit lines of Rs 34,498 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.

In the normal course of business, we transfer accounts receivables and net investment in finance lease (financial assets) to banks. The incremental impact of such transactions on our cash flow and liquidity for the years ended March 31, 2014, 2015 and 2016 is not material. Please refer Note 15 of our Notes to Consolidated Financial Statements.

The Company enters into operating leases for office space, hardware, and certain other equipment. These arrangements are sometimes referred to as a form of off-balance sheet financing and details are available in the notes to the Consolidated Financial statements.

Cash from Operating Activities: Cash generated by operating activities for the year ended March 31, 2016 increased by Rs 611 million over the year ended March 31, 2015, while profit for the year increased by Rs 2,355 million during the same period. This is primarily due to longer collection cycles in India and Middle East business.

Cash used in Investing Activities: Cash used in investing activities for the year ended March 31, 2016 was Rs 138,156 million. The cash invested (net of sales) in available for sale investments and inter-corporate deposits amounted to Rs 104,311 million. Cash utilized for the payment for business acquisitions amounted to Rs 39,373 million. We purchased property, plant and equipment amounted to Rs 13,951 million, which was primarily driven by the growth plan of the Company.

As of March 31, 2016, we had contractual commitments of Rs 10,734 million related to capital expenditures on construction or expansion of software development facilities, Rs 16,859 million related to non-cancelable operating lease obligations and Rs 21,760 million related to other purchase obligations. Plans to construct or expand our software development facilities are determined by our business requirements.

In relation to our acquisitions, a portion of the purchase  consideration is payable upon achievement of specified revenue and earnings targets in the future. We expect that our cash and cash equivalents, investments in liquid and short-term mutual funds and the cash flows expected to be generated from our operations in the future will generally be sufficient to fund the earn-out payments.

Cash used in Financing Activities: Cash used in financing activities for the year ended March 31, 2016 was Rs 1,587 million as against Rs 8,523 million for the year ended March 31, 2015. This is primarily due to an increase in net proceeds of loans and borrowings amounting to Rs 14,370 million. Our borrowings have increased primarily on account of bridge loans to finance our acquisitions of Cellent and HPS. This increase is partly offset by increase in payment of dividend amounting to Rs 6,004 million. Dividends paid in the year ended March 31, 2016 rebrsents final dividend declared for the year ended March 31, 2015 amounting to Rs 7 per share and interim dividend for the year March 31, 2016 amounting to Rs 5 per share.

Shareholder Returns

Dividend: For the fiscal year ended March 31, 2016, the Board of Directors declared an interim dividend of Re 5 per share and recommended a final dividend of Re 1 per share, for a total dividend for the year of Re 6 per share. The recommended final dividend is subject to the approval of shareholders at the next Annual General Meeting, and if approved, would result in a cash outflow of approximately Rs 2,974 million, including corporate dividend tax thereon.

On April 20, 2016, we announced our intention to conduct a buyback of equity shares through a tender offer (the "Tender Offer") in order to distribute returns to the equity shareholders. Under the Tender Offer, we will buy back up to 40 million equity shares of Rs 2 each (rebrsenting 1.62% of total equity capital) from the shareholders of the company on a proportionate basis. The buyback price will be Rs 625 per equity share payable in cash for an aggregate amount not exceeding Rs 25,000 million.

After maintaining a steady dividend payout ratio of 30%, 33% and 31% for the years 2013-14, 2012-13 and 2011-12, we had, considering the needs of liquidity and strategic requirements, enhanced the dividend payout ratio in 2014-15 to 41%.

For the fiscal year ended March 31, 2016, the payout ratio, computed by combining the interim dividend, the proposed final dividend (including the dividend distribution tax) and the aforementioned buyback will be 48%, an increase of approximately 7% from the payout ratio for the brvious year.

Final dividends on common stock are recorded as a liability on the date of declaration by the stockholders and interim dividends are recorded as a liability on the date of declaration by the Board of Directors.

Outlook

Historically, we have followed a practice of providing revenue guidance for our largest business segment, namely, IT Services. The guidance is provided at the release of every quarterly earnings when revenue outlook for the succeeding quarter is shared. Over the years, the Company has performed in line with quarterly Revenue guidance.

On April 20, 2016, along with our earnings release for quarter ended March 31, 2016, we provided our most recent quarterly guidance. We expect Revenue from IT Services segment for the quarter ending June 30, 2016 to be in the range of USD 1,901­1,939 million*.

* Guidance is based on the following exchange rates: GBP/USD at 1.42, Euro/USD at 1.12, AUD/USD at 0.74, USD/INR at 67.31 and USD/CAD at 1.35

WORKPLACE SUSTAINABILITY (HUMAN CAPITAL)

Human Capital is our most important asset in fulfilling our business strategy. We continuously strive to build a best-in-class organizational culture to attract, build and retain talent across levels, globally. We are committed to partnering with employees and strengthening our talent pool by providing them with growth and career enhancement opportunities. Today we have a large and diverse workforce, and we continuously design and implement processes and programs to foster people development, leadership development, and skill enhancements among our global teams.

As on March 31, 2016, our global workforce comprised over 150,000 employees with 32% of them being women. Our workforce across 55 countries comprises employees from 100+ nationalities. Over the years, we have cultivated a strong 'local national' footprint in our international geographies with 42.3% of onsite workforce as local nationals. We have a very young workforce with 60% of our employees under the age of 30 years and an average age of 30.6 years.

People Strategy

Our people strategy is designed to fulfil organizational strategy in the current and emerging business context and is built on the foundation of our values

Our analysis of employees' perception, expectation and feedback, forms a primary input in designing our talent management processes. Additionally, our customers, investors and peer organizations also influence our people value chain and provide perspectives on material issues and risks. Finally, the geo-political situations, particularly in markets where we have high dependencies also form a vital input to our people strategy.

We have taken an integrated talent management approach that spans the complete employee lifecycle. Our talent strategy has the following core elements:

Commitment to Human Rights: Our Company wide Code Of Business Conduct (COBC) and our recently launched Human Rights Policy reemphasize the principles of equal opportunity and meritocracy as embedded in our core values. They are aligned to globally accepted standards and frameworks like the U.N. Global Compact, U.N. Universal Declaration of Human Rights and International Labor Organization. Our commitment to human rights covers employees, suppliers, clients, and communities across geographies where we do business. We have also established committees like Prevention of Sexual Harassment Committee, Audit/Risk & Compliance committees to review progress and formulate strategies to address material issues pertaining to compliance.

Diversity & Inclusion (D&I): Nurturing diversity and making inclusivity a part of Wipro's culture has remained a key focus area for the organization and is a strategic enabler for business sustainability. Our D & I Program was formally launched in 2008 to give shape and direction to this commitment. The focus of our D & I program is multi-dimensional and consists of four pillars - gender, persons with disability, nationality, and underprivileged communities. Our collaboration with research partners and industry platforms like Catalyst, CII, NASSCOM, Diversity and Equal Opportunity Centre (DEOC) bring to the fore focus areas and industry trends which help in shaping our D & I charter.

Employee Well Being & Safety: Through our programs, we believe in influencing all aspects of an employee's life - including physical, mental and emotional well-being. Protection of employees from injury or occupational disease is a major continuing objective. To this end, we continued our efforts to enhance safety & security at the workplace by brscribing policies & procedures, creating awareness and imparting trainings. We have institutionalized key policies like Prevention of Sexual Harassment policy and a robust grievance redressal system.

Combrhensive Benefits & Rewards: We continually strive to provide our employees with competitive and innovative compensation packages. We have devised variable pay programs linking both business unit performance and individual performance. As a pioneering effort among all Indian IT companies, Wipro started providing long term incentives by granting restricted stock units (RSU's) in 2004 towards long term retention of key talent/ niche skills. Our benefits program takes an integrated approach and provides a range of options for better financial and social security including efficient tax-management options, insurance & medical packages, assistance in managing financial and personal issues.

Our programs are reviewed to ensure relevance to today's changing workforce and mirrors the latest industry offerings, based on the region's local regulations / laws and norms.

Employee Engagement & Empowerment: We believe that an informed workforce is an empowered workforce and only when employees are aware of the policies and processes that impact them, can they truly participate in the consultation process. With this in view, we have institutionalized various channels that create awareness, foster dialogue, and provide opportunities for employees to give feedback. These include awareness campaigns through mailers, blogs, webchats, webinars, policy sessions group announcements for key organizational changes/updates, quarterly 'Wipro Meets' session with the CEO and senior leadership teams, All Hands Meet with business leaders, and group and individual connect sessions with the human resources teams. Over the years, our focus on participative engagement has increased and our programs have been more closely aligned to cater to our diverse and multi-generational workforce. Defined metrics on employee-connect events are embedded in the key performance areas of leaders and the HR function alike.

Careers & Capability: In the face of changing client expectations and the advent of rapidly changing technologies, it has become imperative to have a platform that equips the organization with futuristic skills and competencies. Anticipating and defining future needs and developing these competencies in the employees is vital to organizational sustainability. Wipro offers multiple learning & development opportunities to employees at various stages of their career. These are aimed at upskilling, cross-skilling, and reskilling through a number of training programs in technical, domain, soft skills, and leadership aspects. While dedicated teams identify learning needs at an organizational level, employees partake in identifying their individual learning needs through appraisals, feedback surveys, and career tools. Our performance management  system is designed to achieve holistic employee development through performance differentiation, transparency, and effective evaluation. There is a structured process of formally and objectively evaluating one's performance against defined goals & objectives. In FY 15-16, we moved away from 'bell curve' rating fitment, hence giving managers complete ownership to rate their team's performance, while at the same time being accountable to align individual to unit performance. As part of the performance evaluation process, for middle and senior management roles, feedback is also provided through a 360-degree feedback on leadership competencies. Appropriate development plans and interventions are then charted out based on discussion between manager and employee.

Performance Highlights

A) Diversity & Inclusion (D&I)

Gender Equity Program: Recognizing that at different life-stages the needs & expectations of women employees are different, Wipro adopted a life-stage based approach to its gender equity initiative program called 'Women of Wipro'. Focus on gender diversity in Wipro in 2015-16 has been around developing and nurturing the women talent in the organization through various initiatives.

Women of Wipro mentoring Program has won the brstigious NASSCOM award for the Best program in Gender Diversity for 2015-2016 in IT/ ITES companies. It is a mentorship program for High Potential women employees in middle management mentored by senior Wipro leaders.

Women In Technology Forum aims at encouraging and increasing women technologists in Wipro and increasing their visibility through Internal & External forums. Senior women leaders rebrsented Wipro in the brstigious Grace Hopper conference hosted by Anita Borg Institute with the focus & aim to drive Women in engineering initiatives. Workshops on Idea Patenting were organized for women employees. Career Individual Development Plans for middle management women technologists is tracked as an aim to develop their careers.

Your Career Your Choice is a Classroom based Training Module for High Potential women employees who have recently taken on managerial roles. The program aims to be a positive reinforcement for them to relook at their careers with a long-term view and evaluate the specific strengths they bring to the table.

WoW (Women of Wipro) speaker series: Senior women leaders from client organizations conducted open connect sessions with women employees of Wipro under the aegis of 'WoW Speaker Series'.

Wipro has participated in various eminent forums by bodies like SHRM, Academy of International Business, NASSCOM, Catalyst, WECC, NHRDN, and Trilegal during the year. The themes covered included Empowering Women Leadership, Maternity Benefits, Building Awareness to Driving Change, Promoting Young Women in Engineering and Gender Balanced Leadership.

Persons with Disability Program: Our inclusion framework for Persons with Disability (PwD) focuses on key themes of Policy, Accessible Infrastructure, Accessible Information Systems, Recruitment, Training and Awareness. In 2015-16, Wipro won Asia-Pac award' in the Workplace Category at Disability Matters Asia-Pac Conference held at Bangkok.

As on March 2016, 368 employees had voluntarily declared their disabilities through our online Self Identification Form. Number may vary since a number of employees with disability do not brfer to declare their disability and wish to stand at par like all others. We continued our recruitment efforts through collaboration with NGOs and hired 17 talented candidates with disabilities. Our focus has also been on providing br-hiring support like internship opportunities with interns from institutes like ELMS Global (Bangalore), Ekansh Trust (Pune).

Key highlights for 2015-16 below:

» A number of events were organized to engage with persons with disability - International Day for People with Disabilities was celebrated by conducting various awareness programs & contests. Annual All Hand Meet for persons with disability included panel discussions and provided a platform to recognise talent across various award categories. We also organised a Campus Connect for Visually Impaired students from Deal Foundation.

» Networking opportunities were provided to persons with disability connect at Global Forums- A Wiproite was chosen among four others from India to rebrsent at UN's Global Disability Forum.

» Our partnership with Diversity and Equal Opportunity Centre (DEOC) continued through the year to advise us on the inclusion initiatives for employees with disabilities. Wipro Kinesics Portal (a medium to learn basics of sign language) was upgraded with a focus to improve accessibility of our information systems.

» Advocacy- Wipro Sponsored Ability Fest's film screening festival in Chennai & Break Barrier Fest . We were invited for a Guest session on insights from Industry experts for a Seminar on 'Sourcing Non-Conventional Talents makes Business Sense' by NHRD, Kolkata.

B) Employee Well Being & Safety

We have institutionalized health and safety processes including trainings for service providers, risk assessments ,ergonomic session for employees, vaccination campus, health awareness sessions and regular cafeteria food inspections. There is special focus on aspects such as women's safety, assistance to persons with disability, emergency response, and brventive health & safety measures.

Key highlights for 2015-16 below:

» Hazard Communication: Employee connect programs conducted to bring awareness among employees on reporting of hazards, unsafe conditions and unsafe acts to help in reduction of Injury rate.

» Scheduled programs were held across India locations on emergency response, mock evacuation drills, hazard recognition, driver safety training, first aid training, fire-fighting training etc.

» Women's Safety: Security teams are trained on gender sensitization as a part of their on-job training and induction. Cab pickup and drop facility with security

escort is available for women employees travelling in night hours. Women of Wipro committees are formed to discuss concerns and suggestions on women's safety. In FY 15­16, around 1886 women employees have undergone the Security Awareness and Self Defense sessions conducted across locations.

» Vehicle based Quick Reaction Teams deployed in major locations continues to provide services to ensure safe commute and help during emergencies.

» Over 160,000 participants (employees, contractors and service providers) attended trainings on Health & Safety covering Occupational health, Transportation, Hospitality, emergency response and Security domains.

» Flood Deluge: Post floods, free vaccination camps were organized at Chennai and 5824 employees / service providers & their families were vaccinated as part of social cause.

C) Employee Engagement & Empowerment

Wipro holds employee feedback in very high regard and solicits this through formal surveys, informal forums like one to one meetings, All Hands Meetings, focus group discussions, roundtables and team meetings. Through its social networking platform, Yammer, it has enabled employees to crowd source ideas & suggestions, provide real-time feedback and ask queries directly to leaders / functional teams.

Freedom of Association: We respect the right of employees to free association without fear of reprisal, discrimination, intimidation or harassment. A small proportion of our employees are rebrsented through registered trade  unions, local employee rebrsentative groups and work councils in Ireland, Germany, Finland, Sweden, France, Austria, Poland Romania, Netherlands and Australia. The HR function meets these groups periodically to inform and consult on any change that can impact work environment.

Employee Perception Survey (EPS): Our formal mechanism to capture employee feedback is through (1) Biennial Employee Perception Survey (EPS), and (2) a shorter dipstick survey (EPS Pulse) which is held between two EPS cycles. EPS survey 2015 saw both an increase of participation and engagement from the brvious biennial survey in 2013. Our employee engagement scores went up by 1 per cent point and employee participation scores went up by 4 per cent points. EPS 2015 results have already been studied and action areas for the upcoming year have been finalized which includes key initiatives around Manager Effectiveness, Careers & Capability.

Contract Employee Engagement: Our focus on responsible people practices extends across our people value chain, and covers contract employees and retainers, primarily located across our operations in India. Many of these employees are deployed at our client sites, and a Partner Employee

Engagement team (PEET) is responsible for building an engaged and motivated contract workforce. In FY 15-16, the PEET team led various initiatives like client-site visits to meet contractor employees to understand needs and concerns & initiated programs to build capability through training programs. Focused initiatives through these programs have led to higher engagement and retention levels.

D) Careers & Capability

Based on the evolution of technology and customer/market dynamics, our learning and development (L & D) function launched multiple programs to upskill/reskill employees in technical as well as behavioral competencies. Employees built their capabilities through e-learning modules, expert and peer learning, project trainings, webinar participation, outbound trainings, on-job learnings & mentoring. Year 2015­16 saw an impetus on assessments for key roles and specialists; and enablement of the sales teams through sales training workshops.

One key area of focus has been to ensure that our employees are trained in Digital and quickly deployed:

1. Approximately 15,000 employees trained through an innovative platform called "Future Ready" for building Awareness on Digital Technologies for all customer-facing roles.

2. Over 20,000 employees trained on core digital technologies through Digital Foundation Academy.

3. Over 4000 employees benefitted from a program called Cutting EDGE program which trained employees on advanced skills for Digital transformation, such as Digital Architecture, Big Data, Analytics and Mobile Apps Development.

Besides the above, through our 'Train to Bill' initiative , employees whose projects are nearing end or are between projects to be deployed to new projects, are imparted just in time training to suit the needs of the new project. The L&D team works with the business teams to identify the gap in the skills of the employee. Just In Time training is provided to address skill gaps so that the employee can then be deployed in new project opportunities. This initiative aligns training to the business demand and helps in rapidly fulfilling customer requirements.

For a number of our capability building programs, Yammer has been used extensively for social learning. For example, groups have been created focusing on specific technologies/roles in the organization, where employees can come together to effectively learn from each other. After classroom training, the faculty use this platform to engage with the participants for continued learning. The discussions are analyzed to derive feedback which enables L&D to improve training programs. To generate interest, we launched a competition across the various groups in Yammer on how they could use the social media platform effectively for learning. The groups were measured on the number of discussion threads and responses, as well as the quality of the posts. There was enthusiastic participation and many of the groups demonstrated creative and innovative ways of using social media for learning. Over a period of just 6 months, more than 8,000 employees participated in learning groups, posting 85,000 threads of discussion.

Governance approach - Human Capital

It is our belief that long-term sustainability requires a structured approach to identify, monitor, and measure indicators of performance and drive higher accountability. With this in view, we have built people indicators like attrition, employee satisfaction scores, employee engagement initiatives, talent development initiatives into the goals and targets of people functions and leaders who have maximum influence in impacting them. This has created a higher level of accountability and drive in improving people indicators. The indicators provide key insights into the effectiveness of people strategies and are reviewed regularly both at organizational and individual business unit levels through one-to-one performance reviews and team reviews.

INNOVATION (INTELLECTUAL CAPITAL)

Wipro's Research and Development ("R&D") initiatives continue to focus on strengthening and extending our portfolio of IT services across multiple new and emerging technology areas as well as in the intersection of these technologies. We are investing in developing solutions and services around multiple advanced technology areas (commercial wearables, smart robotics, autonomous vehicles, augmented reality, virtual reality, etc.), co-innovating with customers on emerging themes (Digital), enabling new customer experiences, building our patent portfolio, shaping innovation culture by running a number of initiatives to support and fund ideas and also by working closely with partner/startups ecosystem, academia and expert networks to bring cutting edge innovations to our customers.

To drive open innovation efforts for our customers, we are driving many new age innovation initiatives through startups connects, hackathons, ideathons, etc. We are part of various industry and startup forums including the NASSCOM Industry Partner Program (NIPP) that connects promising startups with corporates, to enable partnerships and growth. We are working with various open innovation intermediaries to tap into expert networks across the world to complement our specialists on niche projects to solve complex customer problems involving Artificial Intelligence, Next Gen Architecture, Cognitive Systems etc. We have partnerships with academic and research institutions across geographies.

We are driving co-innovation with customers on emerging themes, conducting joint research, proof of concepts (POC), pilots etc. Some of the emerging areas include block chain, biometrics, new architectures and smart devices.

The innovation incubation center, Technovation Center continues to play a key role in helping customers design, conceptualize, and experience by leveraging future of technologies, industry processes and consumer behavior. The Technovation Center has now evolved into an experience platform to demonstrate the Wipro solutions to our customers. We have started work on our new Technovation Center in Mountain View, CA, USA, which would cater brdominantly to U.S. and Canadian geography customers, when fully operational.

Enabling Innovation

Wipro follows a federated model for innovation with innovation being driven through multiple structures. The CSO (Chief Strategy Officer) and his group invests in long term solution building and aids the investment efforts of the Business Units / Service Lines by supporting some selected seeding initiatives that are designed to create new business services for Wipro.

The CTO (Chief Technology Officer) and his group drive innovation through investing in a set of technology themes that can be applied to create services in different industry verticals. The CTO Office also anchors innovation crowdsourcing and open execution processes within and outside the organization through internal innovation programs and by driving an external program that connects with the ecosystem of startups, academia and research institutions.

Business units (BUs) and Service Lines (SLs) also drive innovation within their respective industry or technology domain and develop solutions and service products within their remits. The internal process transformation group invests in tools and frameworks that help improve costs and productivity of our delivery processes for both infrastructure and application management services.

Key Developments

Wipro's investments in innovation have resulted in many solution enhancements and new capabilities, which are unique and differentiated in the market. They have also led to multiple patents being applied and granted.

• Wipro HOLMES™, a Cognitive AI Platform with a rich set of cognitive computing services based on open source software. It is focused towards solving key enterprise business use cases by injecting cognition into IT and Business processes. The applicability of HOLMES™ (Wipro's Artificial Intelligence platform) is now extended to multiple domains and processes to offer verticalised solutions to customers

• We have built a data discovery platform, which provides pertinent business insights across the value chain of an industry through br-defined applications. Leveraging techniques like visual sciences and story-telling with data, the data discovery platform provides a unique value proposition around accelerating time to market for insights resulting in better adoption of insight driven decision making. Built using best of breed open source technologies, the data discovery platform leverages techniques like machine learning, natural language processing, visualization, stream computing, etc. to bring to the life the hidden insights in large and diverse data sets. Wipro Sight solution uses advanced computer vision based algorithms to analyze customer behavior in stores for delivering enhanced in-store retail experience.

• We have also built a Big Data Ready Enterprise, which is an open sourced big data product aimed at addressing the complete lifecycle of managing data across the enterprise data lake that makes it possible to ingest, organize, enrich, process, analyze, govern and extract data at a  fast pace, thereby significantly accelerating the big data implementation in a cost effective manner.

• The innovation incubation center, Technovation Center continues to play a key role in helping customers design, conceptualize, and experience by leveraging future of technologies, industry processes and consumer behavior. The Technovation Center has now evolved into an experience platform to demonstrate the Wipro solutions to our customers. We have started work on our new Technovation Center in Mountain View, CA, USA, which would cater brdominantly to U.S. and Canadian geography customers, when fully operational.

• We are also building solutions around next generation robotics, drones and autonomous vehicles which combined with the computer vision and cognitive capabilities can address various market needs across industry verticals. We are also working on industrial and enterprise wearable solutions which help improve work force productivity and safety requirements. We had developed a video and sensor based smart parking solution which is useful in a smart city context to dynamically assess parking availability across locations, reservation and demand based pricing. We have developed a smart healthcare solution called Wipro AssureCareTM which helps track medication, vital parameters and is used in elderly Care, home monitoring and clinical trials.

CUSTOMER ENGAGEMENT

(SOCIAL AND RELATIONSHIP CAPITAL)

IT industry is undergoing tremendous change in the face of disruptive technologies. Customer stewardship hinges on meeting customer expectations by being responsive to the emerging trends and offering a portfolio of products and services which integrate resource efficiency, dematerialization, organizational transparency, connectedness and collaboration-to meet changing customer needs. Customer engagement is critical to meet customer expectations and engagement is the foundation on which stewardship rests. Engaging better with customers improves customer retention.

According to a research conducted by Harvard Business School, a 5% increase in customer retention can result in a profit increase of 25% to 95%, depending on the industry. The key to retaining customers is building strong relationships with them and this requires prolonged and sustained customer engagement. Efforts towards customer engagement are justified by the lifetime value (LTV) of the retained customer. A retained customer is cost effective as it will require comparatively less service, at the same time providing more business. It is revenue enhancing as a satisfied customer may contribute to customer acquisition by providing positive referrals.

Approach

Wipro believes in creating value for the customer over and above the contracted terms. Our approach is based on our vision of delivering maximum 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.

Wipro communicates and connects with its customers through a matrix framework. Every strategic account has a dedicated Client Partner to own and manage the relationship. Client Partner profiles the account and offers solutions that are strategically relevant to customers. Business Unit heads interact & engage with customers via regular governance meetings, business review meetings, and client-visits. Service Line heads also interact regularly with the customer. Our CEO visits clients' CXO regularly. Executive sponsors are assigned for all mega accounts to maintain and build the relationship.

The Customer Centricity framework which includes listening to Voice of Customer (VOC) drives our execution. 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 CSAT Program, 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. We conduct surveys on brand perception to understand customer's expectation of Wipro and Wipro's position relative to its competitors.

The Wipro Leaders survey is an annual 360 degree feedback mechanism. In this 'Customer Centricity' is a key leadership attribute on which a leader is given feedback by his peers, managers and reportees. This feedback is both quantitative & qualitative and is analyzed and shared with employees.

The Customer Advocacy Group (CAG) in Wipro is part of the Quality organization and drives customer satisfaction improvement initiatives for the organization. This group is responsible for enabling and tracking the early warning system and for addressing alerts before they can potentially become serious customer issues. The team is also responsible for driving effective closures of customer escalations.

Sustainability Expectations from Customers

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. Many customers require acceptance and alignment with their supplier code of conduct. Third party supply chain CSR raters like Ecovadis and Verego regularly assess and profile our sustainability performance in their platform which is used by more than 30 customers of Wipro. In the recent assessment by Ecovadis, we have achieved an overall CSR rating of Gold (highest among possible three levels). Verego has rated us "Best in Class" across all the 5 areas (Leadership, Ethics, People, Community and Environment) and designated us as a "CSR Thought Leader". We have been assessed by customers for industry consortium developed sustainability protocols like the JAC (Joint Audit Consortium) of Europe based telecom companies and the Pharmaceutical Supply Chain Initiative (PSCI). We also have been benchmarked against over 4,000 other companies that responded to CDP's 2015 supply chain information request sent on behalf of 74 CDP supply chain members with over US$2 trillion spend and received a disclosure score of 100 which is the best possible score.

Performance Highlights

Revenue generated from existing customers / retained accounts and Net Promoter Score are good indicators of the relationship capital of Wipro from customer engagement perspective.

INVESTOR ENGAGEMENT

(SOCIAL AND RELATIONSHIP CAPITAL

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. With reliable financial results and consistent messaging of economic environment, investors are empowered to take investment decision best suited to their risk profile. We deploy multiple channels of communications to keep the investors informed about various development and events.

Wipro's senior management 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 brsentations and schedule of investor interactions are available at <http://www.wipro.com/investors/>

We participate in different investor led disclosures like Dow Jones Sustainability Index, Vigeo and Carbon Disclosure Project. Wipro was selected as a member of the global Dow Jones Sustainability Index (DJSI) - 2015 for the sixth year in succession. Wipro is included in both the DJSI World and Emerging Markets Indices. Euronext Vigeo Emerging Market Sustainability Index also includes Wipro among the 70 most advanced companies in the Emerging Market Region.

Engagement Highlights

The following table details the different types of engagement exercise undertaken by the company in 2015-16. AGM Held

SUPPLIER ENGAGEMENT

(SOCIAL AND RELATIONSHIP CAPITAL)

We value our suppliers as key stakeholders and believe in engaging with them beyond the scope of legal compliance. The program is driven more by responsible engagement and commitment as informed by our values. Our Code of Business Conduct which provides the ethical guidelines and expectations for conducting business directs Wipro's relationship with its suppliers and is applicable to all suppliers, agents, service providers, channel partners, dealers, distributors and vendors ("Suppliers").

In the reporting year, the procurement leadership and Chief Risk Office took up the Initiative of meeting suppliers across three locations - Chennai, Pune and Hyderabad. The Team has covered significant numbers of suppliers in the Facilities management category. This initiative is taken up with primary objective of meeting all the supplier to ensure they follow the risk and compliance processes and statutory guidelines adherence to support compliance with Wipro's supplier code of conduct. A dedicated vendor helpdesk handles supplier queries on payment issues, policy clarifications and provides the initial contact for grievance redressal.

Our approach to engagement is multi-pronged and the focus is to improve the capabilities of suppliers in managing their sustainability performance

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 and city municipal solid waste workers are some examples of areas of engagement in Bengaluru.

Various strands of our Supply Chain Sustainability program:

1. Risk assessment or materiality study of our supply chain - Trucost (UK), Fronesys (UK) and Supply Chain audits of key support services by DNV has helped us identify and prioritize supply chain areas for engagement

2. Supplier Code of Conduct - Communication and evangelization through on-boarding, supplier meets and other forums

3. Quarterly supplier audit for human rights and labor practice based on materiality assessment.

4. Green procurement guidelines based on EPEAT (Green Electronics Council) communicated to suppliers

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 person with disability, women or member of minority communities are identified and engaged with. Diversity supplier spend contributes to 5.4% of total central procurement tracked spend for India operations. Diversity classification is based on supplier self-disclosure and is not verified.

Local Procurement: Wipro encourages sourcing from the local economy. At an aggregate level, nearly 75% of our suppliers are based in India; by value 66% of the procurement for the year was from India based suppliers. Local sourcing reduces costs, provides local employment benefits and reduced environmental footprint in sourcing.

EDUCATION & COMMUNITY

(SOCIAL AND RELATIONSHIP CAPITAL)

At Wipro, we think that 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 try to engage with communities on issues that matter to them most.

Approach

Wipro's social initiatives center on the following dimensions.

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

• Community Care: Engaging with the community on issues of utmost concern to them

• Ecology: Addressing environmental issues

Governance

The review of our social programs is done at multiple levels. Every three to four years, the program strategy is reviewed with the Chief Sustainability Officer (CSO), and revised as needed. Every year, an annual review and goal setting exercise is done with the CSO and brsented to the Chairman and Group Executive Council (CEC). Every quarter, the progress is reviewed by the CSO and brsented to the Chairman as well as to the Board Committee on CSR.

Our work with organizations is usually in the nature of programmatic support. They typically span a period of three years and may be extended further, if needed. We work closely with our partners and review the progress and participate in important decisions along with them during the lifecycle of the project. Details of the Corporate Social Responsibility (CSR) spend across areas and the list of partners is disclosed in Director's Report section of this report.

Key Programs

Education

Wipro Applying Thought in Schools

Wipro Applying Thought in Schools is Wipro's social initiative in school education that aims to build capacities for systemic reform in India. We support social organizations across India working in education reform through partnerships in educational interventions such as curriculum and material development, assessment reform, advocacy, teacher capacity building and systemic capacity building. Over the past 15 years, we have associated with 69 organizations at different levels. We have provided financial support to 51 organizations.

We are currently in a phase of expanding our work. Drawing on our experience from the last 15 years, we aim to significantly increase the number of organizations that we support, with a special focus on new and early stage organizations. The key objective of 2015-16 has been to lay the ground and initiate the expansion.

Key Updates of 2015-16:

• A strategic and operating framework has been developed for accelerated expansion of partner network to 100 organizations over the next 5 years

• A five-member Governance Committee has been constituted for decision making

• Seeding Fellowship program launched to support individuals and groups who have founded young organizations working in school education

• Continued to support 16 organizations through programmatic grants, fellowships, conferences and publications. This included engagement with four new & upcoming organizations being supported from last year

Five new organizations were finalized for support in line with expansion strategy : two of these pertain to 'seeding fellowships' and three towards organizational support

• Instituted an award for children's literature in partnership with Goodbooks Trust and The Hindu Lit Fest

• Support to Eklavya for educational publications such as Beta Kare Sawal (a book for adolescent boys), an atlas for children etc., to be published in FY 16-17.

• Supported conferences on: multilingual education organized by Muskaan and Eklavya; Impact Assessment in Environmental Education conducted by Nature Conservation Foundation; Worlds of Fear: School Culture, organized by Centre for Learning and a conference on Nai Talim organized by Anand Niketan.

Wipro-earthian

Wipro-earthian is Wipro's Sustainability Education Program which seeks to support and drive sustainability thinking and action through the learning process in school and colleges across India. The program completed 5 years in 2015. In 2015­16, we saw very enthusiastic response reflecting in a massive increase in participation numbers, outreach and rebrsentation. We achieved wide geographical rebrsentation in 21 states, 45 districts and increased our reach to 2,000 schools, 1,500 colleges and 2,200 teachers. This was achieved by developing new partnerships with 6 state government bodies and 3 civil society organizations who played a key role in ground outreach. Our cumulative outreach was more than 10,000 educational institutes via social media and other digital channels. Fiscal year 2015-16 saw the program being translated to 4 languages and our total submissions have crossed 1,300 which is a 3- fold increase and the highest ever. Nine college and 12 school teams selected as winners by national jury and felicitated by Mr. Azim Premji at the annual Wipro-earthian awards.

The Continuous Engagement Program (CEP) program aims promote integrated sustainability education in schools and colleges and to co-create educational practices within institutions that leads to sustainability action and thinking. In colleges CEP was driven by a few key initiatives such as our Sustainability Internship program where we facilitated a diverse range of sustainability internship opportunities through our partner ecosystem for 10 students from 6 winning colleges. As a first, 2015 also saw the launch of the Wipro-earthian Sustainability quiz where we successfully ran quizzes at the Indian Institute of Management (IIM) Ahmedabad Confluence festival and the IIM Bangalore Exemius festival where 227 teams and 681 students participated. Two noteworthy initiatives were the launch of the Wipro Sustainability Fellowships at IIM Bangalore as well as the co-curation of a round table discussion on sustainability education which was attended by 60 regional colleges in Orissa. As a part of our strategic collaboration with XUB, Bhubaneshwar we also facilitated a one month sustainability discovery program across India for 6 students from the PG program at the Xavier  School of Sustainability. The CEP program in schools focused on curricular intervention- where we developed a unique sustainability curriculum for Wipro-earthian schools which is being piloted in 9 schools across India.

Wipro Science Education Fellowship Program in the U.S.A.

We started a significant program in school education in 2013 in the U.S.A. While the expenditure associated with this may not be allowable as CSR as per the Companies Act 2013, this is an integral part of our global CSR strategy and therefore something that merits disclosure. The program is currently running in Chicago, New Jersey, New York and Boston. We are partnering with University of Massachusetts, Boston and Michigan State University. Mercy College in New York and Montclair State University in New Jersey are also involved. The program works in close collaboration in over 20 school districts wherein 250-350 teachers go through a 2 year fellowship with intense support to develop their capacities to be better teachers and change leaders. The district administrators are a part of the program. We intend to expand these programs to other cities in future. The current commitment of Wipro to these programs is about USD 7.8 million over a period of 5 years. This is a large and substantial commitment to improving science and math in school education, one of the largest such commitments made by a non US company.

Mission 10X

Mission10X is a not-for-profit initiative of Wipro Limited which was started on September 5, 2007 towards enhancing the employability skills of engineering students by building capacity of engineering education infrastructure. The first phase of Mission10X focused on training teachers on pedagogy while the second phase has focused on "SMALLER and DEEPER Engagement" philosophy where a set of selected Engineering colleges have been given a deeper educational interventions. The following three essential attributes of a 'Graduate engineer' are covered in all Mission10X interventions:

• Communication: Ability to communicate with others for shared understanding in technical, behavioral, logistical and practical concern.

• Collaboration: Ability to work collaboratively to explore possibilities to address the stated problem by drawing knowledge from diverse professionals and backgrounds.

• Deeper Learning: Ability to learn deeply to articulate a problem statement and analyze given data.

The needs of important stakeholders of engineering education ecosystem such as principals, heads of the departments (HoDs), faculty members and students are met through a program that enhances overall learning incorporating structured engagement and effective delivery systems.

In 2015-16, we launched the Students Project Competition, "Prakalpa" (means Project) for all the students of these 54 Mission10X Technology Learning centers (MTLCs). The objective of this initiative is to promote problem solving, innovation, competitive spirit and collaborative learning across MTLCs. Prakalpa is designed to be conducted at 2 levels - one at the regional level and second one at the National level. First level competition was held in 3 regions and the national level completion was held at Bengaluru. A total of 74 projects from more than 20 MTLCs across 10 states were selected for participation.

Summary update till 2015-16 (Since inception)

• Engagement with 1,300 Institutes from 30 states in India

• 28,830 faculty trained on Pedagogy (505 Faculty on Unified Technology Learning Platform)

• 238 Principals and 303 Heads of Departments trained on academic leadership capabilities

• Addressed 10,000 br final and final year students on importance of employability skills

• Created 10,000 integrated innovations in teaching and learning processes with faculty contributions

• Trained 1,000+ students on"Engineering Thinking" module

• Guided 500 projects of final year students across MTLC's

• 54 MTLCs (Mission10X Technology Learning centers) operational in 12 states.

• 12 Affiliations including NASSCOM and ISTE and 3 International affiliations

• Best Practice Award from CorpU, USA, for excellence and innovation.

Community Care

Wipro Cares

Wipro Cares is a not-for-profit trust that engages with our proximate communities on the issues of Education for the Underprivileged, Primary Health-Care and Environment. In addition, the trust also works on long-term rehabilitation of affected communities after natural disasters.

Wipro matches 1:1 all monetary contributions made by employees to Wipro Cares. The number of employee contributors stands at more than 51,000, possibly making this the largest such example in India and the world.

Key Updates of 2015-16:

Education: The education projects continued to provide educational opportunities to underprivileged children, typically children who are most marginalized due to their socio-economic status, for example children of migrant laborers. More than 65,000 children benefited from the sixteen education projects  in the cities of Pune, Hyderabad, Kolkata, Mumbai, Dimapur, Bangalore, Delhi and Chennai. These projects support and enable children to stay in school through remedial education, nutrition, drinking water facility, health check-ups and solar heating-lighting facilities. We also expanded into the North-East specifically targeting children of migrant labourers through non-formal education and thereby mainstreaming these children into formal education.

Disability: We have 12 projects through which we are currently supporting the educational and rehabilitative needs of over 2,500 underprivileged children with disabilities in the cities of Bengaluru, Pune, Jaipur, Delhi, Chennai, Mumbai and Hyderabad. A wide range of disabilities were covered, including Visual, Speech & Hearing, Locomotor, Intellectual and Developmental disabilities. Under disability, our focus is on early intervention and inclusive education to ensure that children with disabilities have access to quality education and the opportunity to lead a life of dignity. Many projects also include capacity building of families and communities to identify and manage disability at an early stage.

Primary Healthcare: Our primary health care projects, in partnership with NGOs, typically provide quality brventive and curative health care services to underserved communities. Through two of our health care projects, covering 60 villages across Maharashtra & Nagaland we are providing more than 30,000 people access to primary health care. Apart from providing regular curative services, we are augmenting the existing state infrastructure, training ASHA workers and building capacity of local groups and thus providing health care services in hard-to-reach remote villages to tribal communities as well as generating awareness on health rights

Environment: We are working on providing social and nutrition security to about 2,000 waste workers in Bangalore, through a solid waste management project, along with upgrading their skills to assist them in augmenting their livelihood and live a life of dignity. This project has further been scaled up to focus on providing waste pickers the access to social, nutritional, and health security.

Disaster Rehabilitation: Wipro Cares focuses on long term rehabilitation of the affected communities after a natural disaster. We do this because we think that any kind of natural calamity usually affects the social fabric of the community and it is important for us to address that impact. In 2015-16, we continued support to communities affected by the Uttarakhand Floods and initiated a project to work with 1,000 families on exploring alternative modes of livelihood to reduce their economic dependence on tourism and increase their resilience as a community. Wipro Cares also supported the victims of Chennai floods in December 2015 by collaborating with NGOs experienced in disaster relief operations and worked with the local government to help affected communities with particular focus on disadvantaged groups and those living near Wipro campuses.

In Philippines we initiated two projects for underprivileged and disaster-affected communities in partnership with International Care Ministries (ICM) and World Wildlife Fund (WWF) to address key developmental issues of the underserved and underprivileged communities in the country by building capacity of local groups through Health lessons that cover a wide curriculum that ranges from nutrition, disease brvention, to proper sanitation; and Livelihood classes to equip participants with different backyard small businesses to earn a living within their immediate community.

Employee Engagement: More than 51,000 Wiproites contributed monetarily to Wipro Cares, making this possibly the largest such initiative in India and one of the largest in the world. Employee volunteering efforts doubled with over 7,703 employees (globally) engaged in voluntary activities contributing to 14,434 hours in 2015-16. We organized various volunteering events and encouraged employees to volunteer with our partners, acting thus as catalysts in bringing about positive change and also learning in the process. We currently have 25 volunteering chapters, 13 in India and 12 overseas. Employees are keen participants in the ongoing causes such as education for underprivileged children, children with disabilities, biodiversity and environment, animal care, old age home, and feeding the poor and homeless, amongst others causes. We also have employees join volunteering efforts across Asia Pacific, Japan, USA, Philippines, Romania and Continental Europe.

Wipro South Africa Initiatives

As an IT company operating in South Africa, Wipro's CSR strategy in South Africa is aligned to the Broad-Based Black Economic Empowerment (BBBEE) Codes of Good Practice, particularly the ICT Charter for responsible corporate citizenship. The primary purpose of BBBEE is to address the legacy of apartheid policies and enhance the economic participation of brviously disadvantaged people in the South African economy. The codes include elements on ownership, management control (MC), skills development (SD), enterprise and supplier development (ESD) & socio-economic development (SED).

Current Initiatives in South Africa include

• Graduate internship program - In partnership with universities, this program provides students, mostly from brviously disadvantaged communities with an opportunity to gain skills and experience in various roles in real world scenarios, leading to employment with Wipro South Africa for participants who complete the program and meet qualifying criteria.

• Grant library/computer centers in schools and communities and an after-school support center towards supporting school education of brviously disadvantaged communities.

• Financial and non-financial support to small and medium enterprises.

ECOLOGICAL SUSTAINABILITY  

(NATURAL CAPITAL)

Ecological sustainability is a cornerstone of our charter on natural capital stewardship. Our approach is built on the pillars of Energy and Green House Gases (GHG) mitigation, Water efficiency and Responsible Water management, Pollution and Waste management and Biodiversity.

The increasing centrality 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 for many now, 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. At Wipro, our community programs on water and waste are two examples of such interventions.

Scope of Reporting

India: All 61 locations, the majority of operations are from 23 owned locations including 3 data centers operational, rebrsenting 80% of our workforce.

Overseas: 139 locations, which includes 7 customer data centers. A majority of the office locations overseas are leased.

Management system

Our programs and management systems are pivoted and derived from the Ecological Sustainability Commitment, available at <http://wipro.org/resource/Ecological_Sustainability_Policy>. pdf . We have been following the guidelines of the ISO 14001 framework for more than a decade now as one of the cornerstones of our Environmental Management System (EMS). 18 of our campus sites in India and 2 in Australia are certified to the standards of ISO 14001:2004.

Energy Efficiency & GHG Mitigation

In our set of goals which ended in 2015, we aimed to reduce our Scope 1 and Scope 2 people-based emissions intensity figures by half from the 2010 baseline. This financial year, we undertook a target setting exercise to propose targets running from the 2015-16 to 2019-20. Over the last couple of years, different frameworks have evolved for setting GERTs (GHG Emissions Reduction Target). Once such framework is the science based target setting from WRI (World Resource Institute) that tries to align itself with the 2 degree imperative i.e. global emissions by 2050 to be 20% of 1990 levels so as to stay within the threshold of 2 degree rise in average surface temperature.

While we have studied and incorporated the WRI framework to the extent that is relevant, our methodology has also been driven by empirical considerations that are more pertinent to the IT industry sector and to India. We have adopted targets for 2025 and 2030 also and these will be revisited at the next target review exercise in 2020.

Energy and GHG Emissions Goals:

1. Absolute Scope 1+2 GHG emissions - Absolute emissions reduction of around 35000 tons.

2. Energy Intensity in terms of EPI - Cumulative reduction of 11% in EPI over 5 years

3. Scope 1+2 GHG emission intensity on Floor Area (FAR) basis - Cumulative reduction of 33 % in GHG intensity from 140 Kg / Sq. Mt (kpsm) to 94 kpsm of CO -eq

4. Renewable Energy - Doubling renewable energy procurement of 65 Million units as on 2014-15 to a target of 135 Million units in 2019-20.

For Energy Efficiency, in line with industry standards, we are shifting from 'Per Employee' based metrics to Floor Area (FAR) based metrics. The accepted standard is EPI or Energy Performance Indicator which is equivalent to Energy Per Unit of Floor Area for a defined number of working hours per day.

We have deliberately not set a Carbon Neutral goal or an offset program for reducing Scope 1 and 2 emissions due to the externalities involved in most alternatives like embedded carbon and water footprint, land use change and broader ecological and social sustainability issues involved in such programs. For example, mass afforestation of a single species over a large area may help achieve a carbon reduction goal but have a high negative impact on water sustainability, biodiversity and livelihoods.

Energy Consumption: The total energy consumption, electricity and back-up diesel generated, for office spaces across all global operations in IT is 322 Mn Units (India adds to 299 Mn units). Data centers, India and overseas (USA and Germany) contribute to another 92 Mn units.

Office Space Energy Metrics: Energy efficiency measures contributed to a 3.7% decrease in office space energy intensity from 195 to 189 units per sq. meter per annum. This is primarily from energy optimization measures, retrofit of older equipment with more energy efficient equipment and consolidation of operations accompanied by a transition from leased to owned facilities with the resulting increase in overall utilization of office space and better quality of maintenance operations.

Emissions Intensity: Our India office space emissions intensity (Scope 1 and Scope 2) is at 116 Kg Co2 eq. per Sq. Mt. per annum, a decrease of 10.8% from last year.

Absolute Emissions: The dashboard in page no. 59 provides a summary of our Global and India GHG emissions for Office spaces - from Scope 1 (emission from direct energy consumption, like fuel) and Scope 2 (emissions from purchased electricity). The figures are net emissions for all years, after considering zero emissions for renewable energy procured. The absolute Scope 1 and 2 emissions for 2015-16 has decreased by around 5% primarily due to higher share of renewable energy procurement.

GHG Mitigation: Our five year GHG mitigation consists of three key elements - Energy Efficiency, Renewable Energy (RE) Purchase and Captive RE; of this, RE procurement will contribute the maximum, 80% share to GHG emission mitigation strategy.

Energy Efficiency: Over the brceding five year period, we have implemented a variety of energy efficiency measures. 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).

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 2016, we have 2088 virtual servers running on 147 physical servers - contributing to an energy savings of approximately 9 Million units annually, an increase of 3% over the brvious year.

RE procurement: For the reporting period of 2015­16, we procured 75 Mn units of Renewable energy through PPAs (Power Purchase agreements) with private producers, which contributed to approximately 23% of our total India energy consumption. However this fell short of our target of 82 Mn units for the reporting year. The mainstay of accessing RE for open access consumers like us has been through direct power purchase agreement from producers in select states. Each state in India has its own mechanism on effecting access to open access- either due to distribution company's finances or infrastructure not being in place to enable large scale evacuation and storage of renewable power. This has led to a gap in meeting our renewables targets. It can be said that it will take a few years before the market matures. In order to avoid double accounting, we have taken adequate steps by including non-tradability of Renewable Energy Certificate (REC) for contracted power through contracts and including verification of generation in the regulators national REC registry.

• Captive RE: The pilot rooftop Solar PV installations at 3 of our campuses followed by extensive use of solar water heaters in our guest blocks and cafeterias have resulted in equivalent savings of 1.3 Mn units of grid electricity.

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 brsently reporting on all of the 8 applicable categories.

The overall emissions across all scopes is 672,502 tons. This does not include conveyance claims and some other minor scope 3 heads. Within this, the three big contributors to our GHG emissions are: Electricity - Purchased and Generated (32%), Business Travel (26%), Employee Commute (15%) and Upstream fuel and energy emissions (15%).

Business Travel: The IT services outsourcing model require frequent travel to customer locations, mainly overseas, across the delivery life cycle and contributes to around a quarter of our overall emissions footprint. This includes 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 approval 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.

Employee Commute: Employees have various choices for commuting informed primarily by distance, flexibility, work timings, costs, city infrastructure and connectivity in the case of group or public transport. In addition to company arranged transport (37%), employees utilize public transport (~-45%), with owned cars and two wheelers accounting 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), carpooling, apart from encouraging cycling to work through an active cycling community in the organization.

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

Collaborative engagements:

As a member of the Indo-US joint research program - the Solar Energy Research Institute for India and the United States (SERIIUS), we are supporting a long term program "Design and development of smart micro-grid technologies for large scale decentralized solar power applications in Indian villages - The Zero Energy Village concept". As a member of the TERI-BCSD (Business Council for Sustainable Development) India program, we participated in the program track on Energy Efficiency that seeks to advance best practices on energy management and efficiency in different industry sectors

We also coordinated the CEO forum on Climate Change as part of COP-21 in Paris and our CEO was one of the co-authors of an article on climate change. We are signatories to the Paris Pledge on Carbon Emissions through the World Economic Forum.

Water Efficiency and Responsible Use

At Wipro, we view water from the three inter-related lens of Conservation, Responsibility and Security; our articulated goals are therefore brdicated on these three dimensions.

Goals

• Water Efficiency - Improve water efficiency (fresh water use per employee) by 5% year on year

• Water Responsibility - To ensure responsible water management in proximate communities, especially in locations that are prone to water scarcity

• Water Security - Recognizing water availability as a business risk, to proactively assess and plan for the water security of the organization in a manner that is congruent with other two goals.

Freshwater recycling and efficiency: The per employee water consumption for the reporting year is 1.295 m3 per month as compared to 1.36 in 2014-15, an improvement of around 4.78%. We recycle 884,245 m3 of water in 27 of our major locations (959,620 in 2014-15) using Sewage Treatment Plants (STPs), which rebrsents 32% (35% in 2014-15) of the total water consumed. The percentage of this recycled water as a percentage of freshwater extracted is around 52%. We have recently commissioned ultra-filtration and RO units for STP treated water at three of our locations. Harvested rainwater contributes to nearly 2% of our total freshwater consumption - which we intend to scale to around 5% in the next couple of years. We continue to focus on demand side optimization measures though efficiency and better operational governance.

Sourcing of Water: Water is withdrawn from four sources -ground water, municipal water supplies, private purchase and harvested rain water - with the first two sources accounting for nearly 57% of the sourced water. The majority of the balance 41% is from private sources near our operational facilities. The

Ground water science for community action

water supplied by the municipal bodies and the industrial association are in turn sourced primarily from river or lake systems. Water that is purchased from private sources can be traced to have been primarily extracted from ground water.

Community Water Programs: Wipro partners with experts organizations, action groups and government bodies to address issues affecting the communities in the vicinity of our organizations.

Participatory Ground Water Mapping Program (PGWM):

Ground water is a primary source of water in Bengaluru, especially for peripheral areas of the city which are not connected to the city municipal supply (BWSSB). Around 40-50% of total water requirement of the city is met through ground water, which is largely unregulated. It is a scarce resource and many areas including the South east areas (Electronics City- Sarjapur-Bellandur-Whitefield corridor) are severely stressed. There is a high reliance on private supply (tanker) of water, the source of which is again mostly ground water. Ground water being a shared common pool resource, the governance choices are complex - from unregulated to centralised responses to community centered management.

As part of our Responsible Water program, we aim to create a community centered participatory approach for management of ground water and lakes in the area. This involves developing an understanding of the hydrogeology of the watershed area and specific clusters and community engagement through development of communication materials and advocacy

Karnataka State Water Network (KSWN)

The Karnataka State Water Network (KSWN) was launched in 2014 by Wipro in partnership with the CII-Karnataka. KSWN is an Industry outreach that brings Businesses, Government, Academia and Communities on a common platform to address water challenges. The purpose of KSWN is to create synergies  and scale among groups with common interest to be a force multiplier. The network has conducted 5 Curated programmes and 2 annual conferences till date, where rebrsentatives from 6 geographical clusters and one theme based cluster around Lakes have come together towards the creation of Water Sustainable Zones and restoration of Lakes in Bengaluru. A Water Sustainable Zone is a geographic area that is partially or fully self-sufficient with respect to its water requirements i.e., its water foot-print does not substantially exceed its geographic boundaries. The network is now working to incorporate itself as a society with a strong governance framework, scale up its activities for larger impact, and engage with Government to inform policy.

Pollution and Waste Management:

Pollution of air and water poses one of the most serious threats to community health and welfare. Our waste management strategies are centered on either (i) recycling the waste for further use or (ii) arranging for safe disposal. To operationalize our strategy, we follow robust processes of segregating waste into organic, inorganic, e-waste, hazardous, packaging, and biomedical and other categories, which is then either recycled in-house or through outsourced vendor arrangements. 92% of the total solid waste (up from 90% in 2014-15) of 6,368 tons generated from our IT India operations is reused or recycled -through both, in-house recycling units and through authorized vendor tie-ups. The balance, which is largely mixed solid waste, construction debris and some categories of inorganic waste is landfilled. Our plan is to reduce Mixed Solid Waste (MSW) generation at source and further drive segregation into recyclable organic-inorganic to increase diversion from landfills.

We are also piloting recycling options for certain categories like Thermocol and construction debris. The revised operating  procedures and recycler requirements for electronic end of life enable better traceability and disclosure of downstream recycler practices. We would work with our partners and vendors in driving better practices and behaviors keeping in mind both human and ecological impacts of any changes. We monitor diesel generator stack emissions (NOx, Sox and SPM) and indoor air quality (CO, CO2, VOC's, RSPM are the key parameters) across locations every month. These meet the specified regulatory norms

In collaboration with InfoActiv, we helped create a platform in the Electronic City Industrial area in Bangalore, India. This zone hosts a significant majority of IT companies and is therefore a source of sizable amounts of e-Waste. The platform will help align common focus areas, opportunities and streamline the processes involved in the management of e-Waste from bulk consumers. A common e-waste collection center has been commissioned and regular end of life electronic material is being collected. Apart from this, we continued to be part of the sub-committee on 'Waste' in the CII National Environment Committee. We supported the "Reimagine Waste" hackathon conducted at Indian Institute of Science, Bengaluru in association with Waste Ventures and other partners.

We continually assess operational risks to the environment and apply the brcautionary principle in our approach to gain insights and plan - for example, the responsible water program and waste life cycle audits. In the reporting period, there were no instances of environmental fines imposed or negative consequences reported due to our operations. We proactively monitor regulatory compliances with respect to air, water and waste - and the emissions and waste generated by the organization are based on updated and approved consents as on date from respective State and Central Pollution control boards. We proactively respond to queries and clarifications received by regulatory bodies.

Biodiversity

As an organization with large campuses in urban settings, we are acutely conscious of our responsibility towards urban diversity and have set for ourselves the following goals.

• To convert five of our existing campuses to biodiversity zones by 2017

• All new campuses will incorporate biodiversity principles into their design

In our approach towards campus biodiversity, our program takes an integrated approach towards the contribution in reducing energy and carbon intensity, improving water retention and ambient air quality. Our first flagship project in the Electronic City campus in Bangalore was initiated 5 years back with the first phase of a unique Butterfly Park now completed. Our next phase includes an innovatively conceived wetland biodiversity zone that will use recycled water.

We have completed the first phase of work on biodiversity retrofit projects at our two campuses in Pune with a rigorous and continuing assessment of seasonal census of flora and fauna biodiversity. This project envisages five thematic gardens - aesthetic and palm garden, spring garden, Ficus garden, spice and fruit garden - through plantations of native species from the local geography. For one campus in Pune, the total number of native species has nearly trebled from 59 to 242. 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 helps build a larger sense of connectedness and emphasizes values of sensitivity and our place in the world around us. We regularly conduct photography, nature journaling, walks and plantation activities for employees and their children.

Our participation in advocacy on biodiversity issues was through two national levels forums - the CII-India Business for Biodiversity Initiative (IBBI) and the Leaders for Nature program from the India chapter of International Union of Conservation Networks (IUCN). We chair CII-IBBI's southern chapter on biodiversity for business. We also brsented at the CII National conference on biodiversity. We have been supporting the "World Sparrow Day" and the "Wipro-Nature Forever Society Sparrow Awards" for the past five years.

Wipro's Natural Capital Valuation Program -An update

Natural capital can be defined as the world's stocks of natural resources which make human life possible. Businesses rely on this natural capital to produce goods and deliver services. They depend on natural non-renewable resources (for example, fossil fuels and minerals) as well as natural renewable ecosystem goods and services (for example, freshwater and pollination). Businesses also rely on natural capital for its ability to absorb by-products of production such as pollution and water. Business extraction and production activities can damage natural capital with long term economic and social consequences.

These economic and social consequences manifest themselves as physical, regulatory and reputational risks for companies. One of the most useful ways for companies to account for these risks is to quantify and value the environmental impacts generated across their value chains in monetary terms.

Traditional 'single parameter' environmental metrics such as cubic meters of water or hectares of land provide an indication of the scale of dependency on ecosystem goods and services or environmental impacts. However, they often fail to identify optimization opportunities for business. Natural capital valuation, on the other hand, provides a deeper insight because it factors scale alongside critical environmental parameters such as regional water scarcity and the ecosystem services provided by land.

There are several global and national government-led projects underway which aim to develop environmental accounts and integrate them with traditional national accounts (GDP) including India. UN Principle of Responsible Investing (UNPRI), in 2010, estimated the environmental costs due to activities of top 3,000 companies at US$ 6 Trillion per year. The Natural Capital Coalition (NCC), for example, is developing a Natural Capital Protocol to provide a standardized approach to natural capital accounting and valuation for businesses

Wipro, in association with Trucost (UK), has completed a natural capital valuation exercise for the brvious two financial year 2013-14 and 2014-15. The valuation for 2015-16 will be completed by August 2016 - however the trends are unlikely to be significantly different. The valuation looks at our global operational footprint - from energy related emissions, water consumption, air/water pollution, waste generation and, land use change, business travel, employee commute - as well as from the embedded natural capital in all goods and services that we procure from our supply chain.

The natural capital embedded in goods and services is primarily based on valuation methodology that is based on Trucost's econometric Input-Output model which takes in spend across different sub-categories of procurement. Monetization of impacts is based on models and a selection of global and local factors - hence certain assumptions and accounting rules are inherent to the exercise.

The total environmental costs relating to Wipro's operations and supply chain was estimated at INR 10,075 million for the fiscal year 2014-15. The largest contributions (see first chart) came from GHG emissions (51%), water abstraction and pollution (25%) and air pollution (20%). The second chart below shows the breakdown in environmental costs across each value chain stage. The operational value chain stage accounted for 36% of Wipro's total environmental cost. From a geography perspective, as expected, India accounts for 82% of the overall environmental cost.

The above figures are net of our positive valuation that are attributable to our environmental initiatives. Wipro's environmental initiatives such as emissions reduction activities, renewable energy procurement and water recycling reduced its overall environmental costs by INR 884 million (9% of the total 2014-15 environmental costs).

For Wipro, this study provides useful indicators to understand impacts and assess the value of our environmental programs. For external stakeholders like customers and analysts, these data points provide a completely transparent full life-cycle understanding of our environmental footprint