Вы находитесь на странице: 1из 12

Executive Summary

It is Summarization of all report 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 its sales and doing good cost
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 are 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

Preface Acknowledgement Executive Summary
1.1 Introduction to company
1.2 Group of companies
1.3 History
1.4 Company Profile
1.5 Registered office address
1.6 Board of director 1.7 Auditor
2.1 Trend analysis of Balance sheet
2.1.1 Trend analysis of fixed assets
2.1.2 Trend analysis of total current assets
2.1.3 Trend analysis of share holders equity
2.1.4 Trend analysis of total current assets
2.1.5 Share holders fund
2.1.6 Sources of fund
2.1.7 Investment
2.1.8 Application of funds
2.2 Horizontal analysis of Balance sheet
2.2.1 Sources of fund 2008
2.2.2 Application of fund 2008
2.2.3 Sources of fund for five years
2.2.4 Application of fund for five years
3.1Trend analysis of P & L
3.1.1 Trend analysis of total income
3.1.2 Profit after tax
3.1.3 Transfer to general reserve
3.1.4 Net sales and services
3.2 Horizontal analysis of P & L
3.2.1 Comparison of PBT and Income with expenditure


4.2Cash flow statement
4.3Interpretation of Cash flow statement
5.1 Introduction of the ratio analysis
5.2 Liquidity ratio
5.2.1 Current ratio
5.2.2 Quick ratio
5.2.3 Net working capital
5.3 Profitability ratio
5.3.1Gross profit
5.3.2Operating ratio
5.3.3Net profit ratio
5.3.4Return on investment
5.3.5Return on equity
5.4 Assets turnover ratio
5.4.1total asset turn over ratio
5.4.2net fixed asset turn over
5.4.3inventory turn over ratio
5.4.4average age of inventories
5.4.5debtor turn over ratio
5.5 Finance structure ratio
5.5.1debt ratio
5.5.2debt equity
5.5.3interest coverage ratio
5.6 Valuation ratio
5.6.1earning per share
5.6.2divident pay out ratio
5.6.3P/E ratio5.6.4Profit margin ratio
5.7 Du-Pont chart
6.1business unit performance
6.2company analysis
6.2.1Share holding pattern
6.2.2Market capitalization

Introduction to company
Group Companies
Company Profile
Registered Office Address
Board of Directors

1.1.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&DServices, Business process outsourcing. Team wipro is 75,000 Strong from 40nat
ionalities and growing. Wipro is present across 29 counries,36 Developmentcanters,
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)
1 . 2 . G r o u p C o mp a n i e s
Wipro Infrastructure Engineering Ltd.

1 . 2 . G r o u p C o mp a n i e s
Wipro Infrastructure Engineering Ltd
Wipro Inc.
cMango Pte Ltd.
Wipro Japan KK
Wipr Shanghai Ltd.
Wipro Trademarks Holding Ltd.
Wipro Travel Services Ltd.
Wipro Cyprus Private Ltd.
Wipro Consumer Care Ltd.
Wipro Health Care Ltd.
Wipro Chandrika Ltd.(a)
Wipro Holdings (Mauritius) Ltd.
Wipro Australia pty Ltd.
Quantech Global Service Ltd.
3D Network Pte Ltd.
Planet PSG Pte Ltd.
Spectramind Inc

1 .3 History
Wipro started in 1945 with the setting up of an oil factory in Amalner a small town in
Maharashtra in Jalgaon District. The product Sunflower Vanaspati and 787 laundry soap
(largely made from a bi-product of Vanaspati operations) was sold primarily
inMaharashtra and MP. The company was aptly named Western India ProductsLimited.
The Birth of the name Wipro- As the organization grew and diversified into operations of
Hydraulic Cylinders and InfoTech, the name of the organization did not adequately reflect
its operations. Azim Premji himself in 1979 selected the name Wipro" largely an acronym
of Western India Products. Thus was born the Brand Wipro. The name Wipro was unique
and gave the feel of an 'International" company. So much so that some dealers even sent
their cheques favoring Wipro (India) Limited. Fortunately, the banks accepted them!!By
the early 90s, Wipro had grown into various products and services. The Wipro product
Basket had soap called Wipro Shikakai, Baby products under Wipro Baby Soft, Hydraulic
Cylinders branded Wipro, PCs under the brand name Wipro, a joint venture company with
GE named Wipro GE and software services branded Wipro. The Wipro logo was a 'W",
but it was not consistently used in the products. It was clearly felt that the organization was
not leveraging its brand name across the various businesses. The main issue remained
whether a diverse organization such as Wipro could be branded under a uniform
look and feel and could there be consistent communication about Wipro as anorganization
1.4.Company Profile
Wipro Limited is the first PCMM Level 5 and SEI CMM Level 5 certified
ITServices Company globally. Wipro provides comprehensive IT solutions andservices,
packageimplementation, software application development and maintenance, and researcha
globally.The Group's principal activity is to offer information technology services. Theserv
ices include integrated business, technology and process solutions including systems
integration, package implementation, software application development and maintenance
and transaction processing. These services also comprise of information
technology consulting,
personal computing and enterprise
products, information
technology infrastructure management and systems integration services. The Group also
offers products related to personal care, baby care and wellness products. The operations

of the Group are conducted in India, the United States of America and Other countries.
During fiscal 2007, the Group acquired Wipro Cyprus Pvt Ltd, Retail box Bv, Enabler
Informatics SA, Enabler France SAS, Enabler Uk Ltd, Enabler Brazil Ltd, Enabler and Retail
Consult GmbH, Cmango Inc, Cmango (India) Pvt Ltd, Saraware Oy, Quantech Global
Services and Hydro auto Group AB Global IT Services and Products
The Company's Global IT Services and Products segment provides IT services to
customers in the Americas, Europe and Japan. The range of its services includes IT
consulting, custom application design, development, re-engineering and maintenance,
systems integration, package implementation, technology infrastructure outsourcing, BPO
services and research and development services in the areas of hardware and software
interactionservices, finance and accounting services and process improvement services for
repetitive processes. The Global IT Services and Products segment accounted for 74% of
the Company's revenues and 89% of its operating income for the year ended March 31,
2007 (fiscal
2007). Of these percentages, the IT Services and Products segment accounted for 68% of
its revenue, and the BPO Services segment accounted for 6% of its revenue during fiscal
Customized IT solutions
Wipro provides its clients customized IT solutions in the areas of enterprise ITservices,
technology infrastructure support services, and research and development services. The
Fortune1000 and Global 500 companies. Its services extend from enterprise applicationser
vices to e-Business solutions. Its enterprise solutions have served clients from a range of
industries, including energy and utilities, finance, telecom, and media and entertainment.
The enterprise solutions division accounted for 63% of its IT Services and Products
revenues for the fiscal 2007.
Technology Infrastructure Service
Wipro offers technology infrastructure support services, such as help desk management, sy
stems management and migration, network management andmessaging
Company provides its IT Services and Products clients witharound-theclock support services. The technology infrastructure support servicesdivision accounted
for 11% of Wipro's IT Services and Products revenues in fiscal2007.
Research and Development Services

Wipro's research and development services are organized into three areas of
focus:telecommunications and internetworking, embedded systems and Internet accessdevices, and telecommunications and se
rvice providers.The Company providessoftware and hardware design, development and
implementation services in areas such as fiber optics communication networks, wireless
networks, data networks, voice switching networks and networking protocols. Wipro's
software solution for embedded systems and Internet access devices is programmed into
the hardware integrated circuit (IC) or application-specific integrated circuit (ASIC) to
eliminate the need for running the software through an external source. The technology
is particularly important to portable computers, hand-held devices, consumer electronics,
computer peripherals, automotive electronics and mobile phones, as well as other
machines, such as process-controlled equipment. The Company provides
software application
integration, network integration and maintenance services totelecommunications
providers, Internet service providers, application service providers and Internet data
Business Process Outsourcing Service
Wipro BPO's service offerings include customer interaction services, such as ITenabled customer services,
services, technical support services and IT
helpdesks; finance and accounting services, such as accounts payable and accounts
receivable processing, and process improvement services for repetitive processes, such as
claims processing, mortgage processing and document management. For BPO projects, the
Company has a defined framework to manage the complete BPO process migration and
GlobalServices, Cognizant, Infosys, Satyam and Tata Consultancy Services.India andAsia
Pac IT Services and Products The Company's India and Asia Pac IT Services and Products
business segment, which is referred to as Wipro InfoTech, is focused on the Indian, AsiaPacific and Middle-East markets, and provides enterprise clients with IT solutions. The
India and AsiaPacIT Services and Products segment accounted for 16% of Wipro's revenue
in fiscal2007. The Company's suite of services and products consists of technology
products;technology integration, IT management and infrastructure outsourcing services;cu
stom application development, application integration, package implementationand
maintenance, and consulting.

Wipro's system integration services

Include integration of computing platforms, networks, storage, data center andenterprise
management software. These services are typically bundled with sales of the Company's
Technology productd. Wipros infradtructure management and Total outsourcing services
include management and operations of customer's ITinfrastructure on a day-to-day basis.
The companys technology support services includes services messaging, network audits
and new system implementation. Wipro designs, develops and implements enterprise
applicationsfor corporate customers. The Company's solutions include custom applicationd
evelopment, package implementation, sustenance of enterprise applications,including
Wiproalso provides consulting services in the areas of business continuity and risk manage
ment, technology, process and strategy.
Consumer Care and Lighting
Wipro's Consumer Care and Lighting business segment accounted for 5% of its revenue in
fiscal 2007. The Company's product lines include hydrogenated cooking oil, soaps and
toiletries, wellness products, light bulbs and fluorescent tubes, and lighting accessories. Its
product lines include soaps and toiletries, as well as baby products, using ethnic
ingredients. Brands include Santoor, Chandrika and Wipro Active. The Wipro Baby Soft
line of infant and child care products includes soap, talcum powder, oil, diapers and
feeding bottles and Wipro Sanjeevani line of wellness products. The Company's product
lineincludesincandescentlightbulbs,compactfluorescentlamps and luminaries. It operates bo
th in commercial and retail markets. TheCompany has also developed commercial lighting
solutions for pharmaceutical production centers, retail stores, software development centers
and other industries. Its product line consists of hydrogenated cooking oils, a cooking
medium used in homes, and bulk consumption points like bakeries and restaurants. It sells
this product under the brand name Wipro Sunflower
1.5. Registered Office Address
WIPRO LIMITED Dodda kannelli, Sarjapur Road, Bangalore 560 035, India.
Tel :+91-80-28440011
Fax :+91-80-2844054

1 . 6 .B o a r d o f Di r e c t o r s
Azim H . Premji
Dr Ashok S Ganguly
Former Chief Ex.Officer Nortel
B .C. Prabhakar
Practitioner of Law
Dr. Jagdish N. Sheth
Professor Of Marketing-Emory Uni.Usa.
Chairman-ICICI Bank Ltd
Bill Owens
Former Chief Ex.Officer,Nortel
P. M. Sinba
Former Chairman Pepsico India HoldingsAzim PremjiChairmen &
Managing Director
BSR & Co.
Audit committee
N Vaghul - ChairmanP M Sinha - Member B C Prabhakar - Member
Shareholders Grievance and Administrative Committee
B C Prabhakar - ChairmanAzim H Premji - Member
Board Governance and Compensation Committee
Ashok S Ganguly - ChairmanN Vaghul - Member P M Sinha - Member

Chapter 2. Analysis of Balance Sheet
Trend Analysis of Balance Sheet
Horizontal Analysis of Balance Sheet
2.1.Trend Analysis of Balance Sheet
Trend Analysis of Balance Sheet involves calculation of percentage
changes in theBalance Sheet items for a no. of successive years. This is
carried out by taking thei t e ms o f t h e p a s t f i n a n c i a l ye a r u s e d a s
b a s e ye a r a n d i t e ms o f o t h e r ye a r s a r e expressed as percentage of the
base year. Here 2003-04 is taken as base year