Financial plan for Wipro Company

Limited

Presented by DIMA TEAM

Introduction of the Company Industry –IT SECTOR Company Name- WIPRO LTD Incorporation year– 1945 Chairman- Azim H Premji Headquarters-Bangalore, India Wipro is leading Indian based provider of IT services

including BPO services globally. ISO-Certified

Introduction of the Company The Company is certified globally and one of the

leader in providing IT solutions and services for the corporate segment in India.

Received Best Award from ASTD for 3 consecutive years.

Acquisitions of Wipro mPower Software services Inc,a Princeton,Newjersey US

headquartered-USD 28 million New logic Technologies AG-Semiconductor IP business-Euro

26 million US Based Quantech Global services LLC-USD 3 million US based CMango Inc and India based CMango Inc-USD

20million. Finland based Sarware Oy Middle East & SAARC operations

of 3D Network. Hydrauto group AB for cash of USD 31 million Joint venture namely- WMNETSERV Ltd

Financial Planning The Company should be able to achieve its objectives by

minimizing the use of resources.

The systematic approach of financial planning and budgeting should be done effectively.

This plan indicates the Firms growth , performance , investments and requirements of funds during the given period of time.

High

HighLow

Low

Ind

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ry G

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ate

Ind

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Relative Market ShareRelative Market Share

Stars

Strategic Decision making & Planning

Stars(High growth, high market share)

The business has high market share compared to competitors and it is doing business in high-growth market

Use large amounts of cash and are leaders in the business so they should also generate large amounts of cash.

Frequently roughly in balance on net cash flow. However if needed any attempt should be made to hold share, because the rewards will be a cash cow if market share is kept.

Financial planning to check feasibility

Turn around Strategy

Asset Sales and Closures

Acquisitions

Improving Profitability Portfolio Planning Identifying SBUs Assessing and Comparing SBUs

Relative Market Share Relative Growth Rate

Cash Flow StatementParticulars Yr-2009 Yr-2010 Increase Decrease

Operating Activity

Cash flow from operating activities

3750.1 4409.2 677.1 -------

Operating Profit before Working Capital

-1135.75 585.8 550 -------

Financial Activity

Dividend Received 579.6 537.46 46 -------

Closing cash balance 1273.1

Ratio Analysis of the Company Gross profit Ratio

= (Gross profit/Sales)*100

Mar ‘ 10 Mar ‘ 09 Mar ‘08 Mar ‘07 Mar’06

22.89% 20.90% 19.83% 23.21% 22.50%

Ratio Analysis of the Company Net profit Ratio

= (Net profit/Sales)*100

Mar ‘ 10 Mar ‘ 09 Mar ‘08 Mar ‘07 Mar’06

19.44% 18.23% 17.51% 20.76% 19.71%

Ratio Analysis of the Company Operating cost Ratio

= (Operating expenses/Net Sales)*100

Mar ‘ 10 Mar ‘ 09 Mar ‘08 Mar ‘07 Mar’06

15.19% 15.57% 15.75% 15.24% 15.14%

Conclusion Sometimes Companies will like to achieve growth that their

current financial position could sustain. Sustainable growth is the annual percentage growth in sales that is consistent with the firms financial policies.

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