Company: WIT
Filing Date: 2025-05-22
Form Type: 20-F
Source: 0000950170-25-076303
Chunk: 9

Company: WIPRO LTD
Filing Date: 2025-05-22
Form: 20-F
Item: Item 3
Chunk 9
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 or illegal activities in the course of audits or investigations, we may become subject to various civil and criminal penalties and administrative sanctions, which may include termination of contracts, forfeiture of profits, suspension of payments, fines and suspensions or unilateral debarment from doing business with other agencies of that government. The inherent limitations of internal controls may not prevent or detect all improper or illegal activities, regardless of their adequacy, and therefore we can only mitigate, and not eliminate, this risk.
•Government contracts are often subject to more extensive scrutiny and publicity than contracts with commercial clients. Negative publicity related to our government contracts, regardless of its accuracy, may further damage our business by affecting our ability to compete for new contracts among commercial and governmental entities.
•Political and economic factors such as pending elections, changes in leadership among key governmental decision makers, revisions to governmental tax policies, efforts to reduce government spending, reduced tax revenues and public health crises, such as COVID-19, can affect the number and terms of new government contracts signed.
•Terms and conditions of government contracts tend to be more onerous and are often more difficult to negotiate than those for commercial contracts.
•Government contracts may not include a cap on direct or consequential damages, which could cause additional risk and expense in these contracts.
•Agreements with government clients may be subject to periodic funding approval. Funding reductions or delays could adversely impact public sector demand for our offerings.
•Participation in government contracts could subject us to stricter regulatory requirements, which may increase our cost of compliance.
•Delays in acceptances of delivery milestones or release of payments could adversely affect our cashflows.
Many of our client contracts can be terminated without cause, with little or no notice and without termination charges, which could negatively impact our revenue and profitability.
Our clients typically retain us on a non-exclusive, project-by-project basis. Some of our client contracts, including those that are on a fixed-price, fixed-time frame basis, can be terminated with or without cause, with as little as 15 days’ notice and without termination-related penalties. Most of our contracts with clients are typically limited to discrete projects without any commitment to a specific volume of business or future work. Our business is dependent on the decisions and actions of our clients, and there are a number of factors that might result in the termination of a project or the loss of a client that are outside of our control, including:
•the business or financial condition of our clients or the economy generally; 
•a change in strategic priorities, resulting in a reduced level of IT