Company: WIT
Filing Date: 2025-05-22
Form Type: 20-F
Source: 0000950170-25-076303
Chunk: 167

Company: WIPRO LTD
Filing Date: 2025-05-22
Form: 20-F
Item: Item 11
Chunk 167
---
 the foreign exchange exposure of forecasted highly probable cash flows. From time to time, we may also designate foreign currency denominated borrowings as a hedge of net investment in foreign operations.
As of March 31, 2025, a ₹ 1 increase in the spot exchange rate of the Indian Rupee with the U.S. Dollar would result in an approximately ₹ 2,115 million (including consolidated statement of income of ₹ 537 million and other comprehensive income of ₹ 1,578 million) decrease in the fair value, and a ₹ 1 decrease would result in an approximately ₹ 2,134 million (including consolidated statement of income of ₹ 537 million and other comprehensive income of ₹ 1,597 million) increase in the fair value of foreign currency dollar denominated derivative instruments (forward and option contracts).
Interest rate risk
Interest rate risk primarily arises from floating rate borrowings, including various revolving and other lines of credit.

 --

The Company’s investments are primarily in short-term investments, which do not expose it to significant interest rate risk.
From time to time, the Company manages its net exposure to interest rate risk relating to borrowings by entering into interest rate swap agreements, which allows it to exchange periodic payments based on a notional amount and agreed upon fixed and floating interest rates. If interest rates were to increase or decrease by 100 bps as on March 31, 2025, it would result in an increase or decrease in fair value of interest rate swaps of approximately ₹ 47 million and ₹ (48) million respectively, in other comprehensive income. If interest rates were to increase by 100 bps as of March 31, 2025, additional net annual interest expense on floating rate borrowing would amount to approximately ₹ 879 million. Certain borrowings are also transacted at fixed interest rates.
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 credit rating and financial reliability of customers, considering the financial condition, current economic trends, forward-looking macroeconomic information, analysis of historical bad debts and ageing of accounts receivable. No single customer accounted for more than 10% of the accounts receivable as at March 31, 2025 or revenues for the year ended March 31, 2025. There is no significant concentration of credit risk.
Trade receivables and unbilled receivables are written off where there is no reasonable expectation of recovery. Indicators that there is no