Company: WIT
Filing Date: 2025-05-22
Form Type: 20-F
Source: 0000950170-25-076303
Chunk: 168

Company: WIPRO LTD
Filing Date: 2025-05-22
Form: 20-F
Item: Item 11
Chunk 168
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 reasonable expectation of recovery include, amongst others, the failure of a customer to engage in a repayment plan with the Company.
Please refer to Note 9 of our Notes to the Consolidated Financial Statements for changes in allowances for lifetime expected credit loss.
Counterparty risk
Counterparty risk encompasses issuer risk on marketable securities, settlement risk on derivative and money market contracts and credit risk on cash and time deposits. Issuer risk is minimized by only buying securities in India which are at least AA rated by Indian rating agencies. Settlement and credit risk is reduced by the policy of entering into transactions with counterparties that are usually banks or financial institutions with acceptable credit ratings. Exposure to these risks are closely monitored and maintained within predetermined parameters. There are limits on credit exposure to any financial institution. The limits are regularly assessed and determined based upon credit analysis including financial statements and capital adequacy ratio reviews.
Cash and cash equivalents include demand deposits of ₹ 21,499 million and bank balances of ₹ 63,350 million held with three banks having high credit ratings, which are individually in excess of 10% or more of the Company’s total cash and cash equivalents as at March 31, 2025.
Investments include term deposits of ₹ 30,661 million and non-convertible debentures of ₹ 24,399 million held with a bank having high credit rating, which is in excess of 10% or more of the Company’s total investments as at March 31, 2025.
Liquidity risk
Liquidity risk is defined as the risk that we will not be able to settle or meet our obligations on time or at a reasonable price. Our corporate treasury department is responsible for liquidity and funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company’s net liquidity position through rolling forecasts on the basis of expected cash flows. As of March 31, 2025, our cash and cash equivalents are held with major banks and financial institutions. Please refer to the “Liquidity and Capital Resources” section of Item 5 of this Annual Report on Form 20-F for further details on assessment of our liquidity position.

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