Samvid 2nd Issue, June 2013 | Page 35

Exhibit 11: Forex derivative transactions for Wipro As of March 31
Designated cash flow hedging derivative instruments
Sell Dollars Yen Australian Dollar CHF Euro
2012( in millions)
1081 1474-- 17
2011( in millions)
901 3026 4 6 2
Net Investment hedges in foreign operations Cross Currency swaps( Yen) Others( Dollars) Euro
24511 262 40
24511 262 40
Non Designated Derivative Instruments Sell Dollars GBP Euro Australian Dollars Buy Dollars Yen Cross Currency Swaps( Yen)
541 58 44 31
555 1997 7000
526 40 48 13
617- 7000
Exhibit 12: Differences in approach
Particulars
TCS
Infosys
Wipro
What do Companies Hedge?
100 % receivables and net revenues( 2 quarters currently)
Net receivables only don ' t go over 100 %
75-125 % of receivables, 5-75 % of next 4 quarters net inflows, some long term contracts, debts
Who decides the hedging policy?
Risk management committee
Risk management committee
Risk management policy is presented to the audit committee
Tenure of hedges
Usually 6 mths
1-2 quarters
Within a year, immediate quarter maximum hedged
Forwards vs options
Largely options
forwards
Predominantly forwards
31