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Our Bureau

Bangalore, Jan. 22 Wipro Ltd has liquid investments to the tune of Rs 5,830.6 crore at the end of the December quarter, parked in various instruments such as cash deposits, money market mutual funds and certificate of deposits.

The company holds two-thirds of its liquid investments in cash and current account deposits, while 29 per cent of it is held in money market mutual funds and the rest in CDs.

The recent Rs 7,000-crore fraud at Satyam Computer Services Ltd has prompted other IT services vendors such as Infosys Technologies and Wipro Ltd to voluntarily disclose their cash balances with various banks, a move that would help the companies regain trust and build confidence among investors.

As part of its enhanced disclosures, Wipro revealed that it has parked more than two-thirds of its cash balances in deposit accounts and the rest in current accounts, mainly with the private sector banks.

As of December-end, Wipro has parked Rs 634 crore with HDFC Bank, Rs 572.6 crore with State Bank of India, Rs 485.2 crore with HSBC Bank and Rs 381.8 crore with Citi Bank, among others.

Wipro has invested Rs 363.3 crore in UTI Mutual Fund, Rs 355.2 crore in ICIC MF, Rs 239.8 crore in Franklin Templeton MF, Rs 198.3 crore in Birla SunLife MF and Rs 174.8 crore in HDFC MF, among others.

Infosys Technologies, the first company to disclose its bank deposits, has parked about 67 per cent of its Rs 7,718 crore with public sector banks. “While putting checks and balances internally, one has to increase the disclosure levels. We strongly believe that the Government should mandate this kind of disclosure for all companies so that the confidence level in the market will come back,” said Mr V. Balakrishnan, Chief Financial Officer, Infosys, after the company announced the December quarter results last week.

More Stories on : Software | Corporate Governance | Wipro Ltd

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