Wipro says unaffected by GM bankruptcy
03 Jun 2009
Software exporter Wipro Ltd does not see a significant adverse impact of the bankruptcy filing by its ''valued client'' General Motors though it has outstanding dues of $8 million from the bankrupt US car-maker, it has told the regulatory authorities in a statement.
"In the light of recent news reports on General Motors, Wipro would like to disclose the status of its relationship with them. General Motors accounts for less than 1 per cent of Wipro's IT Services segment revenue, and our assessment is that a substantial portion is expected to continue,'' Wipro informed the Bombay Stock Exchange.
"Our accounts receivable as on the date of filing is under $8 million. Based on our current assessment, we do not expect significant adverse impact on account of this development," it added.
General Motors had filed for bankruptcy Monday, becoming the largest-ever US manufacturer to enter the court process and marking the latest dark chapter for the struggling US auto industry.
''Based on our current assessment, we do not expect significant adverse impact on account of this development (bankruptcy filing),'' the statement said. Wipro further added that it is in constant talks with the firm to monitor and assess the situation.
