Executive Summary

It is Summarize tin of the entire project in one or two pages so as to provide an overview of the
company. It is also called synopsis or Abstract. As a partials fulfillment of the requirement for
the Managerial Accounting Course. We have completed a project report on financial Analysis of
Wipro Ltd.
Sales Figure is increasing at a handsome rate. it is at Rs. 58400.23 Million. in2003-04 and it is
increased to Rs. 141395.8 Million. So Sales is increased 75.05% because of aggressive Selling
Policy.
Profit after Tax is also increasing as compare to 2003-04 it is increasing 22514Million at Rs
3408, 8747, 4388.6, 5970.4, respectively last four year. This is because company has increased it
sales and doing good cost management
Net worth of the company is increased in this year because of increase in Reserve& Surplus
Current Ratio of Wipro limited is showing good position. It is 1.26 Times in2003-04 then it is
increased to 2.13 Times in 2007-08 this shows Company has achieved standard Ratio.
The returns on the investment is somewhat decline in current year.
The EPS of Share is increased Rs. 7.43 to Rs 20.62 in 2007-08 So Share holder are benefited.
Companys Total Assets are increased and it trying to expand its business on the other hand
debt are also increased it shows that company trying to Trading on Equity.
After analyzing all aspect Companys performance is good.













6. RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. It may be
understood as a science of studying how research is done scientifically. So, the research
methodology not only talks about the research methods but also considers the logic behind the
method used in the context of the research study.
6.1 Research Design:
Descriptive research is used in this study because it will ensure the minimization of bias and
maximization of reliability of data collected. The researcher had to use fact and information
already available through financial statements of earlier years and analyze these to make critical
evaluation of the available material. Hence by making thetype of the research conducted to be
both Descriptive and Analytical in nature. From the study, the type of data to be collected and
the procedure to be used for this purpose were decided.
6.2 Data Collection:
The required data for the study are basically secondary in nature and the data are collected from
the audited reports of the company.
6.2.1 Primary Data:
Primary data are those data, which is originally collected afresh. In this project, Questionnaire
Method and Interview Method have been used for gathering required information.
6.2.2 Sources of Data:
The sources of data are from the annual reports of the company from the year 2007-2008 to
2009-2010.
6.3 Methods of Data Analysis:
The data collected were edited, classified and tabulated for analysis. The analytical tools used in
this study.
6.3.1 Analytical Tools Applied:
The study employs the following analytical tools:
Ratio Analysis
















OBJECTIVE OF STUDY
The main objective of Ratio Analysis is to get knowledge about financial position of Wipro.Ltd

Specially, objectives of study are as follows:
To know about ratios prevailing at the end of different financial years.
To form opinion about financial position of Wipro
DATA SOURCE
In order to complete this project reports the data is collected through secondary sources of the
company .The secondary source include reports of Balance Sheet & Profit & Loss a/c of the
bank.
















RATIO ANALYSIS
Ratio Analysis is a form of Financial Statement Analysis that is used to obtain a quick indication
of a firm's financial performance in several key areas. The ratios are categorized as Short-term
Solvency Ratios, Debt Management Ratios, Asset Management Ratios, Profitability Ratios, and
Market Value Ratios.
Ratio Analysis as a tool possesses several important features. The data, which are provided by
financial statements, are readily available. The computation of ratios facilitates the comparison
of firms which differ in size. Ratios can be used to compare a firm's financial performance with
industry averages. In addition, ratios can be used in a form of trend analysis to identify areas
where performance has improved or deteriorated over time.
Because Ratio Analysis is based upon accounting information, its effectiveness is limited by the
distortions which arise in financial statements due to such things as Historical Cost Accounting
and inflation. Therefore, Ratio Analysis should only be used as a first step in financial analysis,
to obtain a quick indication of a firm's performance and to identify areas which need to be
investigated further.
The pages below present the most widely used ratios in each of the categories given above.
Please keep in mind that there is not universal agreement as to how many of these ratios should
be calculated. You may find that different books use slightly different formulas for the
computation of many ratios. Therefore, if you are comparing a ratio that you calculated with a
published ratio or an industry average, make sure that you use the same formula as used in the
calculation of the published ratio.
Concepts
Short-term Solvency Ratios
Debt Management Ratios
Asset Management Ratios
Profitability Ratios
Market Value Ratios
Equations





Advantages and Limitations of Ratio Analysis
Advantages
1. It simplifies the financial statements.
2. It helps in comparing companies of different size with each other.
3. It helps in trend analysis which involves comparing a single company over a period.
4. It highlights important information in simple form quickly. A user can judge a company
by just looking at few numbers instead of reading the whole financial statements.
Limitations
Despite usefulness, financial ratio analysis has some disadvantages. Some key demerits of
financial ratio analysis are:
1. Different companies operate in different industries each having different environmental
conditions such as regulation, market structure, etc. Such factors are so significant that a
comparison of two companies from different industries might be misleading.
2. Financial accounting information is affected by estimates and assumptions. Accounting
standards allow different accounting policies, which impairs comparability and hence ratio
analysis is less useful in such situations.
3. Ratio analysis explains relationships between past information while users are more
concerned about current and future information.










OBJECTIVE
The main objective of ratio analysis is to show a firms relative strengths and weaknesses. Other
objectives of ratio analysis include comparisons for a useful interpretation of financial
statements, finding solutions to unfavorable financial statements and to help take corrective
measures when, in comparison to other similar firms, financial conditions and performance of
the firm are unfavorable. Ratio analysis also determines the financial condition and financial
performance of a firm. Using ratio analysis allows an analyst to determine the ability of the firm
to meet its obligations, the overall operating efficiency and performance of the firm and the
efficiency with which the firm is utilizing its assets in generating sales.

Ratio analysis is a tool used to conduct a quantitative analysis of information in a companys
financial statements. Ratios are calculated by individuals from current year numbers and are
these numbers are then used to judge the performance of the company by comparing them to
previous years, other companies, the industry or even the economy. A ratio analysis can help
give a quick indication of how a company is doing in certain key areas and the ratios can be
categorized as short-term solvency ratios, debt management ratios, asset management ratios,
profitability ratios, and market value ratios.

Ratio analysis should only be used as a first step in financial analysis. As it is a tool that is based
on accounting information, it ca be limited by any distortions that arise in financial statements
due to historical cost accounting and inflation. It can also be difficult to draw comparisons using
ratio analysis due to differences in the analysis made by other firms. Using ratio analysis can
identify areas that may need to be investigating further. Some of the advantages of ratio analysis
include that is helps in credit analysis, it can help in financial performance analysis and that it
simplifies a financial statement.





IMPORTANCE
Ratios are guides or shortcuts that are useful in evaluating the financial position of a company
and the operations of a company from scientific facts. It helps in comparison of changes in static
data from previous years to current year and with the comparison of other companies as well. In
accounting and financial management ratios are regarded as the real test of earning capacity,
financial soundness and operating efficiency of business concern.
The following points highlight the importance of ratio analysis:
Simplifies Accounting Figures: The most significant objective of ratio analysis is that it
simplifies the accounting figures in much easier way by which anyone can be understood it quite
easily even for those who do not know the language of accounting.
Measures Liquidity Position: Liquidity position of a firm is said to be satisfactory if it is able to
meet its current obligation as and when they mature. A firm is said to be capable of meeting its
current obligation only, if it has sufficient liquid funds to pay its short- term obligations within a
period of year. Hence, the liquidity ratios are used for the purpose of credit analysis by banks and
other short-term lenders.
Measures Long-term Solvency: Ratio analysis is equally important in evaluating the long- term
solvency of the firm. It is measured by capital structure or leverage ratios. These ratios are
helpful to long-term creditors, security analysts and present and prospective investors, as they
reveal the financial soundness or weakness of the firm.
Measures operational Efficiency: Ratios are useful tools in the hands of management to evaluate
the firms performance over a period of time by comparing the present ratios with the past ratios.
Various activity or turnover ratios measure the operational efficiency of the firm. These ratios
are used in general by the bankers, investors and other suppliers of credit.
Measures Profitability: The management as well as owners of a firm is primarily concerned with
the overall profitability of the firm. Profit and loss account reveals the profit earned or loss
incurring during a period, but fails to convey the capacity of the firm to earn in terms of money
of sales. Profitability ratios help to analysis earning capacity of the firm. Return on investment,
return on capital employed, net profit ratios etc. are the best measures of profitability.
Facilities Inter-firm and Intra-firm comparisons: Ratio analysis is the basic form of comparing
the efficiency of various firms in the industry and various divisions of a firm. Absolute figures
are not suitable for this purpose, but according ratios are the best tools for inter firm and inter
firm comparison.
Trend Analysis: Trend analysis of ratios reveals whether financial position of the firm is
improving or deteriorating over years because it enables a firm to take the time dimension into
account. With the help of such analysis one can ascertain whether the trend may be increasing

COMPONENTS

1. Earnings
The key element all investors look after is earnings. Before investing in a company you want to
know how much the company is making in profits. Future earnings are a key factor as the future
prospects of the company's business and potential growth opportunities are determinants of the
stock price.
Factors determining earnings of the company are such as sales, costs, assets and liabilities. A
simplified view of the earnings is earnings per share (EPS). This is a figure of the earnings which
denotes the amount of earnings for each outstanding share.

2. Profit Margins
Amount of earnings do not tell the full story, increasing earnings are good but if the cost
increases more than revenues then the profit margin is not improving. Theprofit margin measures
how much the company keeps in earnings out of every dollar of their revenues. This measure is
therefore very useful for comparing similar companies, within the same industry.

Higher profit margin indicates that the company has better control over its costs than its
competitors. Profit margin is displayed in percentages and a 10 percent profit margin denotes
that the company has a net income of 10 cents for each dollar of their revenues.
To get better understanding of profit margins it is good to compare two companies with
alternative margins, see table below.



3. Return on Equity (ROE)
Return of equity (ROE) is a financial ratio that does not account for the stock price. Since it
ignores the price entirely it is by many thought of as THE most important financial measure. It
can basically be thought of as the parent ratio that always needs to be considered.
This ratio is a measure of how efficient a company is in generating its profits. It is a ratio of
revenue and profits to owners' equity (shareholders are the owners). Specifically it is:

An easy example of this is that if company A and company B both generate net profits of $1
Million but company A has equity of $10 Million but company B has equity of $100 Million.
Their ROE would be 10% and 1% respectively meaning that company A is more efficient as it
was able to produce the same amount of earnings with 10 times less equity.

The reason for why this measure is so important is because it contains information about several
factors, such as:
Leverage (which is the debt of the company)
Revenue, profits and margins
Returning values to shareholders
Good approximation is that ROE should be 10-40% greater than its peer.

4. Price-to-Earnings (P/E)
When taking the current market price into consideration, the most popular ratio is the Price-to-
Earnings (P/E) ratio. As the name suggest it is the current market price divided by its earnings
per share (EPS). It is an easy way to get a quick look of a stock's value.
A high P/E indicates that the stock is priced relatively high to its earnings, and companies with
higher P/E therefore seem more expensive. However, this measure, as well as other financial
ratios, needs to be compared to similar companies within the same sector or to its own historical
P/E. This is due to different characteristics in different sectors and changing markets conditions.
This ratio does not tell the full story since it does not account for growth. Normally, companies
with high earnings growth are traded at higher P/E values than companies with more moderate
growth rate. Accordingly, if the company is growing rapidly and is expected to maintain its
growth in the future this current market price might not seem so expensive. This is the reasoning
for the existence of different investment styles; Value vs. Growth stocks.
Example
While some sectors normally have low P/E measures, other sectors commonly have higher
ratios. For example, utilities commonly have P/E ranging from 5 to 10 while technology
companies commonly have a P/E ratio ranging from 15 to 20 or above.This is due to
expectations in the market about the sector and its earnings-growth possibilities. The utility
sector has stable earnings and is not expected to grow rapidly while technology companies are
expected to grow faster and tend to need less capital for its growth.
In order to simplify, the following table illustrates four companies in two sectors with alternative
figures.

It is not very appropriate to compare Apple with GDF Suez as Apple has a growth rate of 11
times more than GDF. It is more appropriate to compare Apple with Google. In that relation,
Apple seems cheaper than Google by the look of the P/E. Now you should ask why that could
be? -is this bargain or are some other reason why Apple is priced lower than Google. One
suggestion might be that the market expects Google to have more earnings-growth in the coming
future and Apple's previous earnings growth is not expected to grow much further.

In order to account for growth, the P/E ratio can be modified into thePrice/Earnings to Growth
(PEG) ratio. A PEG ratio is calculated by dividing the stock's P/E ratio by its expected 12 month
growth rate. A common rule of thumb is that the growth rate ought to be roughly equal to the P/E
ratio and thus the PEG ratio should be around 1. A relatively low PEG ratio indicates an
undervalued stock and a PEG ratio much greater than 1 indicates an overvalued stock.
The PEG ratio can be very informative figure, especially for fast growing and cyclical
companies. In this one ratio you get an understanding of the company's earnings, growth
expectations and whether it is trading at a reasonable price relative to its fundamentals.

5. Price-to-Book (P/B)
A price-to-book (P/B) ratio is used to compare a stock's market value to its book value. It can be
calculated as the current share price divided to the book value per share, according to previous
financial statement. In a broader sense, it can also be calculated as the total market capitalization
of the company divided by all the shareholders equity.
This ratio gives certain idea of whether you are paying too high price for the stock as it denotes
what would be the residual value if the company went bankrupt today.
A higher P/B ratio than 1 denotes that the share price is higher than what the company's assed
would be sold for. The difference indicates what investors think about the future growth potential
of the company.

Buying at the right price?
In the long run the stock price should reflect its fundamental true value. However in the short run
a stock might have great fundamentals but still be moving in wrong direction. This can be due to
other factors, such as news releases and changes in future outlook, which also have effect on the
price. Trends in the market and investors emotions also effect the short-term fluctuation in stock
prices resulting in the current market price deviating from its true value.
One question that is important to consider is: "What is the difference between a great business
and a great investment?" -the answer is "price". If you pay too high price for even the best stock
in the world, you will never make a good return on your investment. Therefore, a great
investment does not likely have a high price. The point of this question is that the price you pay
for a stock does matter enormously; it is the most important factor in your return. Accordingly,
doing your fundamental analysis (thoroughly) is of a great importance when making your
investments.
When determining whether a company's stock is a good investment, fundamental analysis is a
great toolbox to reach a conclusion.




















COMPANY PROFILE

Introduction of company
Wipro Limited (Wipro), together with its subsidiaries and associates (collectively, the company
or the group) is a leading India based provider of IT Services and Products, including Business
Process Outsourcing (BPO) Services, globally. Further, Wipro has other business such as India
and Asia Pac IT Services and products and Consumer Care and Lighting. Wipro is headquartered
in Bangalore, India. Wipro Technologies is a global services provider delivering technology-
driven business solutions that meet the strategic objectives clients. Wipro has 40+ Centers of
Excellence that create solutions around specific needs of industries. Wipro delivers unmatched
business value to customers through a combination of process excellence, quality frameworks
and service delivery innovation. Wipro is the World's first CMMi Level 5 certified software
services company and the first outside USA to receive the IEEE Software Process Award. Wipro
is a $3.5 billion Global company in Information Technology Services, R&D Services, Business
process outsourcing. Team Wipro is 75,000 Strong from 40nationalities and growing. Wipro is
present across 29 counries,36 Development centers, Investors across 24 countries.
Largest third party R&D Service provider in the world.
Largest Indian Technology Infrastructure management service provider.
A vendor of choice in the middle east
Among the top 3 Indian BPO Service provider by Revenue (* Nasscom)
Among the top 2 Domestic IT Services companies in India (*IDC India)


Wipro Limited

"Applying Thought"
Type
Public
Traded as
BSE: 507685
NSE: WIPRO
NYSE: WIT
BSE SENSEX Constituent
CNX Nifty Constituent
Industry
IT services, IT consulting
Founded
Mumbai, Maharashtra (in 1945)
Founders
M.H. Premji
[1]

Headquarters
Bangalore, Karnataka, India
Area served
Worldwide
Key people
Azim Premji
(Chairman & CEO)
Services
IT, business














































consulting and outsourcingservices
Revenue
437.6 billion (US$7.3 billion)
(2013-14)
[2]

Operating
income
89.3 billion (US$1.49 billion)
(2013-14)
[2]

Profit
78.4 billion (US$1.3 billion)
(2013-14)
[2]

Total assets
502.3 billion (US$8.37 billion)
(Mar 2014)
[2]

Total equity
344.9 billion (US$5.75 billion)
(Mar 2014)
[2]

Employees
147,452 (March 2014)
[3]

Website
www.wipro.com

HISTORY
Wipro Ltd., the flagship company of the Azim H Premji group was incorporated in the year
1945. The company started off originally as a manufacturer of vegetable ghee/vanaspati, refined
edible oils etc. Gradually the company has diversified into various other businesses.
Today Wipro Limited is the first PCMM Level 5 and SEI CMM Level 5 certified IT Services
Company globally. Wipro provides comprehensive IT solutions and services, including systems
integration, Information Systems outsourcing, package implementation, software application
development and maintenance, and research and development services to corporations globally.
In the Indian market, Wipro is a leader in providing IT solutions and services for the corporate
segment in India offering system integration, network integration, software solutions and IT
services. Wipro also has profitable presence in niche market segments of consumer products and
lighting. In the Asia Pacific and Middle East markets, Wipro provides IT solutions and services
for global corporations.
Wipro's ADSs are listed on the New York Stock Exchange, and its equity shares are listed in
India on the Stock Exchange Mumbai, and the National Stock Exchange, among others.
Wipro is the leading strategic IT partner for companies across India, the Middle East and Asia
Pacific offering integrated IT solutions. They plan, deploy, sustain and maintain your IT
lifecycle through their total outsourcing, consulting services, business solutions and professional
services. Wipro InfoTech helps you drive momentum in your organisation no matter what
domain you are in.
Backed by their strong quality processes and rich experience managing global clients across
various business verticals, they align IT strategies to your business goals. Along with their best
of breed technology partners, Wipro InfoTech also helps you with your hardware and IT
infrastructure needs.
The various accreditations that they have achieved for every service they offer reflect their
commitment towards quality assurance. Wipro InfoTech was the first global software company
to achieve Level 5 SEICMM, the world's first IT Company to achieve Six Sigma, as well as the
world's first company to attain Level 5 PCMM.
Their continuing success in executing projects is a result of their stringent implementation of
quality processes. Deploying quality frameworks to align with your business will give you the
benefit of a smooth and transparent transition while providing complete IT lifecycle
management. Reliability and perfection are a result of their adherence to these quality
benchmarks and this has been their key differentiator, while helping drive the business
momentum.
The companys experience and expertise are measured against globally recognized standards to
ensure their commitment in delivering competitive solutions to their customers. Wipro InfoTech
epitomises quality by maintaining high standards in service offerings and products, as well as
internal processes and people management. They believe in constantly scaling quality standards
by expanding our efficiency in all areas beyond their basic IT offerings.
Different people perceive innovation in various ways. At Wipro InfoTech, their innovative
thinking helps them adopt newer business lines and offerings based on your business
expectations. They have adapted to the changes brought about by technology and business and
this has helped us improve customer experience through service delivery and process
optimisation.
In 2013, the company decided to shut down its hardware manufacturing business because it
offers no competitive advantage. It would no longer build Wiprobranded desktops, laptops, and
servers, including the SuperGenuis line of PCs and NetPower servers. It would now look to beef
up its footprint as a systems integrator and increase its focus on IT services.

Different divisions of the company:
Wipro Technologies Wipro Technologies is the global IT services business division of Wipro
Limited. With over 20 offices around the world, Wipro Technologies is the No.1 provider of
integrated business, technology and process solutions on a global delivery platform.
Wipro Infotech Wipro Infotech is the leading strategic IT partner for companies across India,
the Middle East and AsiaPacific offering integrated IT solutions. We plan, deploy, sustain and
maintain your IT lifecycle through our total outsourcing, consulting services, business solutions
and professional services.
Wipro Consumer Care and Lighting Wipro Consumer Care and Lighting, a business unit of
Wipro Limited, has a profitable presence in the branded retail market of toilet soaps, hair care
soaps, baby care products and lighting products. It is also a leader in institutional lighting in
specified segments like software, pharma and retail.
Wipro Infrastructure Engineering Wipro Infrastructure Engineering was Wipro Limiteds
first diversification in 1975, which addressed the hydraulic equipment requirements of mobile
original equipment manufacturers in India. Over the past 25 years, the Wipro Infrastructure
Engineering business unit has become a leader in the Hydraulic Cylinders and Truck Tipping
Systems markets in India, and intends growing its business to serve the global manufacturing
requirements of Hydraulic Cylinders and Truck Tippers.
Wipro GE Medical Systems Wipro GE Medical Systems is a joint venture between Wipro
and General Electric Company. As a part of GE Medical Systems South Asia, it caters to
customer and patient needs with a commitment to uncompromising quality. Wipro GE is Indias
largest exporter of medical systems, with unmatched distribution and service reach in South
Asia. Wipro GE pioneered the manufacture of Ultrasound and Computed Tomography systems
in India and is a supplier for all GE Medical Systems products and services in South Asia.

Products and services offered by the company:
Wipro was having its presence across various verticals viz;(it decided to shut its hardware
business in 2013)
Wipro Personal Computing Products
Enterprise Products
Software Products and Licences





Services offered by the company:
System Integration
Managed Services
Total Outsourcing
Application Development and Portals
Business Transformation Services
Security Governance
Data Warehousing and Biz Intelligence
Availability Services
Milestones
2012:
Wipro Australiabased MMG Selects Wipro as Strategic Partner
Wipro Wipro Acquires L.D.Waxson with Skincare brands Bioessence & Ginvera
Wipro Tech joins Car Connectivity Consortium (CCC) to develop smartphonebased
connectedcar solutions
Wipro Technologies, Oracle joined hands to offer next gen Oracle Fusion HCM solution
Wipro Infotech, the India and Middle East, IT Business unit of Wipro launched the e.go
aero range of ultraportable notebooks
Wipro Wins NASSCOM Corporate Award for Excellence in Diversity and Inclusion 2012
2011: Inaugurated its first rural BPO at Manjakkudi village in Tamil Nadu to capitalize on
literate talent pool available in the region.
2011: Wipro has signed an agreement to acquire majority stake of Brazil based hydraulic
cylinder manufacturer R.K.M. EQUIPAMENTOS HIDRAULICOS.
2010: Wipro Infotech the India, Middle East and Africa, IT Business of Wiprohas been
awarded a 5year IT outsourcing contract by Vasan Eye Care one of India's largest network
of eye care centers and a unit of Vasan Healthcare Group.
2010: Wipro Technologies, the global IT services business division of Wipro, has jointly with
Citrix Systems entered into an agreement with Microsoft.
2008: Launch of Wipro Egypt Development Center
2008: Launch of Wipro GSMC in Kuala Laumpur
2007: Wipro Arabia Joint Venture found
2006: Acquisition of 3D networks
2006: Launch of GSMC Global Service Management Centre for remote service delivery
2004: Start of Total Outsourcing business
2002: Start of Consulting business unit
2001: Launch of Wipro Infotech Middle East & AsiaPacific operations
1998: Mission Quality journey started with focus on Six Sigma
2000: Wipro Listed on NYSE
1998: Relaunch of Wipro branded PC
1995: WiproBT joint venture started
1995: Joint Venture with Acer started
1995: Partnership with Cisco announced
1995: Offshoring services started
1992: Launch of global R&D services
1990: Launch of global software services business
1988: Partnership with Sun Microsystems announced
1986: Manufacturing tieup with Epson for printers
1986: Start of Wipro PC manufacturing (with India's first surface mounted technology)
1984: Start of Wipro Systems focus on software products (Wipro branded as well as
distribution business)
1981: Manufacture of mini computers started at the Mysore factory
1980: Birth of IT business under banner of Wipro Information Technology Ltd. focused on
hardware manufacturing and R&D
1945: Manufacturing of edible oils

















Achievements/ recognition:
In 2014 Wipro Rated as a 'High Performer' in HfS Blueprint Report on Insurance BPO
Wipro Recognized as a Best in Class Outsourcing and Consulting Service Provider for 2014
by Consumer Goods Technology Readers
Best Websphere Partner Award.
Authorized EMC Signature Partner in South Asia.
Best TSG Partner of HP.
Best System Integrator award 200708.
Best Technology Partner for the Year.
Network Integrator of the Year 2008.
SAP Pinnacle Award 2008.
Golden Peacock Innovation Management Award 2007.
Riverbed Partner of the year 2007 award.
National Partner of the Year 2007 Award from Microsoft.
Wipro wins FIVE awards from CISCO.
India's first ever Microsoft Platinum Partner Award.
Wipro 3D Networks once again emerged as the most formidable partner for Nortel in FY 2006
bagging all the highest awards in significant categories Sales, pre sales & post sales
Partner of the Year award:Over Drive Excellence of the Year award Sales Champion of
the Year award PreSales Champion of the Year award Customer Champion of the Year
award












Balance Sheet of Wipro ------------------- in Rs. Cr. -------------------

Mar '14 Mar '13 Mar '12 Mar '11 Mar '10


12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds

Total Share Capital 493.20 492.60 491.70 490.80 293.60

Equity Share Capital 493.20 492.60 491.70 490.80 293.60

Share Application Money 0.00 0.00 0.00 0.00 1.80

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 28,862.70 23,736.90 23,860.80 20,829.40 17,396.80

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Networth 29,355.90 24,229.50 24,352.50 21,320.20 17,692.20

Secured Loans 106.00 50.40 1.00 9.60 0.00

Unsecured Loans 4,404.30 3,995.60 5,242.20 4,701.20 5,530.20

Total Debt 4,510.30 4,046.00 5,243.20 4,710.80 5,530.20

Total Liabilities 33,866.20 28,275.50 29,595.70 26,031.00 23,222.40


Mar '14 Mar '13 Mar '12 Mar '11 Mar '10


12 mths 12 mths 12 mths 12 mths 12 mths

Application Of Funds

Gross Block 9,034.60 8,312.50 8,761.60 7,740.60 6,761.30

Less: Accum. Depreciation 5,059.60 4,403.10 4,111.80 3,503.60 3,105.00

Net Block 3,975.00 3,909.40 4,649.80 4,237.00 3,656.30

Capital Work in Progress 275.10 378.90 301.20 396.40 991.10

Investments 11,036.00 10,904.20 10,335.20 10,813.40 8,966.50

Inventories 228.30 320.50 785.10 724.90 606.90

Sundry Debtors 8,550.90 8,499.40 7,967.00 5,781.30 5,016.40

Cash and Bank Balance 10,554.90 7,800.40 6,232.80 5,203.30 1,938.30

Total Current Assets 19,334.10 16,620.30 14,984.90 11,709.50 7,561.60

Loans and Advances 11,116.70 8,893.80 8,324.80 6,963.50 5,425.90

Fixed Deposits 0.00 0.00 0.00 0.00 3,726.00

Total CA, Loans & Advances 30,450.80 25,514.10 23,309.70 18,673.00 16,713.50

Deffered Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities 7,992.60 8,792.80 5,984.20 5,121.20 4,874.20

Provisions 3,878.10 3,638.30 3,016.00 2,967.60 2,230.80

Total CL & Provisions 11,870.70 12,431.10 9,000.20 8,088.80 7,105.00

Net Current Assets 18,580.10 13,083.00 14,309.50 10,584.20 9,608.50

Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00

Total Assets 33,866.20 28,275.50 29,595.70 26,031.00 23,222.40

Contingent Liabilities 7,081.70 2,657.80 2,820.50 1,677.90 778.00

Book Value (Rs) 119.03 98.38 99.04 86.86 120.49



Source : Dion Global Solutions Limited


Standalone Profit & Loss
account
------------------- in Rs. Cr. -------------------
Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Income

Sales Turnover 38,757.20 33,226.50 31,682.90 26,300.50 23,006.30

Excise Duty 0.00 0.00 0.00 0.00 84.30

Net Sales 38,757.20 33,226.50 31,682.90 26,300.50 22,922.00

Other Income 1,611.20 1,325.30 1,227.40 680.70 866.70

Stock Adjustments -0.90 18.20 -44.90 31.60 111.00

Total Income 40,367.50 34,570.00 32,865.40 27,012.80 23,899.70

Expenditure

Raw Materials 2,548.50 2,701.40 4,684.90 3,805.60 3,768.80

Power & Fuel Cost 246.80 230.40 233.40 200.50 141.40

Employee Cost 18,337.50 15,904.20 13,311.50 10,937.40 9,062.80

Other Manufacturing Expenses 0.00 0.00 0.00 0.00 2,145.30

Selling and Admin Expenses 0.00 0.00 0.00 0.00 1,491.40

Miscellaneous Expenses 8,515.10 7,475.20 7,365.20 5,627.70 921.80

Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00

Total Expenses 29,647.90 26,311.20 25,595.00 20,571.20 17,531.50

Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Operating Profit 9,108.40 6,933.50 6,043.00 5,760.90 5,501.50

PBDIT 10,719.60 8,258.80 7,270.40 6,441.60 6,368.20

Interest 374.70 352.40 605.70 136.00 99.80

PBDT 10,344.90 7,906.40 6,664.70 6,305.60 6,268.40

Depreciation 736.70 701.30 746.10 600.10 579.60

Other Written Off 0.00 0.00 0.00 0.00 0.00

Profit Before Tax 9,608.20 7,205.10 5,918.60 5,705.50 5,688.80

Extra-ordinary items 0.00 0.00 0.00 0.00 0.00

PBT (Post Extra-ord Items) 9,608.20 7,205.10 5,918.60 5,705.50 5,688.80

Tax 2,220.80 1,554.90 1,233.50 861.80 790.80

Reported Net Profit 7,387.40 5,650.20 4,685.10 4,843.70 4,898.00

Total Value Addition 27,099.40 23,609.80 20,910.10 16,765.60 13,762.70

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 1,973.60 1,724.70 1,475.20 1,472.60 880.90

Corporate Dividend Tax 335.30 289.20 239.30 220.40 128.30

Per share data (annualised)

Shares in issue (lakhs) 24,663.17 24,629.35 24,587.56 24,544.09 14,682.11

Earning Per Share (Rs) 29.95 22.94 19.05 19.73 33.36

Equity Dividend (%) 400.00 350.00 300.00 300.00 300.00

Book Value (Rs) 119.03 98.38 99.04 86.86 120.49



Source : Dion Global Solutions Limited


Cash Flow ------------------- in Rs. Cr. -------------------
Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Net Profit Before Tax 9608.20 7205.10 5918.60 5705.50 5688.80

Net Cash From Operating Activities 6588.60 6119.20 2997.90 3711.20 4477.40

Net Cash (used in)/from
Investing Activities
239.60 -3573.10 -339.80 -1474.00 -3064.60

Net Cash (used in)/from Financing
Activities
-4088.60 -1005.50 -1723.80 -2733.30 -96.20

Net (decrease)/increase In Cash
and Cash Equivalents
2690.30 1567.70 1029.50 -463.80 1316.60

Opening Cash & Cash Equivalents 7864.60 6232.70 5203.30 5667.10 4347.70

Closing Cash & Cash Equivalents 10554.90 7800.40 6232.80 5203.30 5664.30



Source : Dion Global Solutions Limited


Wipro Previous Years

------------------- in Rs. Cr. -------------------



Mar
'14
Mar '13 Mar '12 Mar '11 Mar '10


Investment Valuation Ratios

Face Value 2.00 2.00 2.00 2.00 2.00

Dividend Per Share -- -- -- -- --

Operating Profit Per Share (Rs) 39.07 31.09 28.60 26.26 40.52

Net Operating Profit Per Share (Rs) 176.07 151.97 151.25 126.46 185.35

Free Reserves Per Share (Rs) -- -- 104.04 88.93 123.52

Bonus in Equity Capital 96.51 96.63 96.81 96.98 95.32

Profitability Ratios

Operating Profit Margin(%) 22.18 20.45 18.90 20.76 21.86

Profit Before Interest And Tax
Margin(%)
18.91 17.28 15.74 17.78 18.77

Gross Profit Margin(%) 19.74 17.94 16.28 18.22 19.09

Cash Profit Margin(%) 19.95 18.32 17.09 19.03 19.40

Adjusted Cash Margin(%) 19.95 18.32 16.96 19.24 19.40

Net Profit Margin(%) 17.52 15.82 14.70 16.66 16.73

Adjusted Net Profit Margin(%) 17.52 15.82 14.57 16.63 16.73

Return On Capital Employed(%) 28.24 26.42 22.32 23.30 23.09

Return On Net Worth(%) 24.73 23.15 20.74 23.53 25.38

Adjusted Return on Net Worth(%) 24.87 23.27 20.32 23.66 25.30

Return on Assets Excluding
Revaluations
130.27 107.86 109.88 91.62 124.25

Return on Assets Including
Revaluations
130.27 107.86 109.88 91.62 124.25

Return on Long Term Funds(%) 31.60 30.61 23.84 24.73 24.93

Liquidity And Solvency Ratios

Current Ratio 1.95 1.55 1.83 1.82 1.82

Quick Ratio 2.59 2.06 2.38 2.12 2.13

Debt Equity Ratio 0.16 0.16 0.21 0.23 0.34

Long Term Debt Equity Ratio 0.03 -- 0.08 0.09 0.24

Debt Coverage Ratios

Interest Cover 27.38 28.19 21.30 33.27 45.91

Total Debt to Owners Fund 0.16 0.16 0.21 0.23 0.34

Financial Charges Coverage Ratio 30.14 31.44 77.60 92.23 52.03

Financial Charges Coverage Ratio
Post Tax
24.49 25.50 65.19 79.37 44.71

Management Efficiency Ratios

Inventory Turnover Ratio 189.38 114.71 34.88 31.98 39.42

Debtors Turnover Ratio 5.36 4.77 5.23 5.50 5.36

Investments Turnover Ratio 189.38 114.72 39.73 36.29 39.42

Fixed Assets Turnover Ratio 3.76 3.63 3.34 3.23 3.26

Total Assets Turnover Ratio 1.38 1.47 1.43 1.41 1.43

Asset Turnover Ratio 1.27 1.17 1.22 1.19 3.26



Average Raw Material Holding -- -- 74.01 23.68 15.66

Average Finished Goods Held -- -- 4.52 6.20 6.59

Number of Days In Working
Capital
120.82 132.95 149.54 132.03 134.53

Profit & Loss Account Ratios

Material Cost Composition 7.04 8.38 15.83 16.01 18.95

Imported Composition of Raw
Materials Consumed
-- -- -- -- --

Selling Distribution Cost
Composition
-- -- 1.86 2.51 2.49

Expenses as Composition of Total
Sales
-- -- -- -- --

Cash Flow Indicator Ratios

Dividend Payout Ratio Net Profit 28.87 32.74 30.59 31.98 21.79

Dividend Payout Ratio Cash Profit 25.47 28.40 26.05 27.83 18.73

Earning Retention Ratio 71.29 67.43 68.78 68.19 78.14

Cash Earning Retention Ratio 74.65 71.73 73.49 72.30 81.21

AdjustedCash Flow Times 0.56 0.61 0.90 0.86 1.16



Source : Dion Global Solutions Limited










Conclusion
Finance is the life blood of every business. Without effective financialmanagement a company cannot in
this competitive world. A Prudent financial Manager has to measure the working capital policy followed
by the company.
After analysis data we conclude that Wipro financial cycle is going on effectively.
It shows that company is earning more money because every year amount is increasing without
increasing liabilities.
All ratios are increasing such as EPS Net profit ratio
The companys overall position is at a very good position. The company achieves sufficient profit in past
four years. The long term solvency position of the company is very good. The company maintains low
liquidity to achieve the high profitability. The company distributes dividends every year to its share
holders. The profit of the company decreased in the last year due to maintaining the comparatively high
liquidity. The networking capital of the company is maximum in the last year shows the maximum
liquidity.