Wipro Limited.docx(Tushar).Doc2003 Final

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Wipro Ltd.

Account analysis

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Acknowledgement

I have taken efforts in this project. However, it would

not have been possible without the kind support and

help of many individuals and organizations. I would like

to extend my sincere thanks to all of them.

I am highly indebted to Mr. Mobin Sheikh for their

guidance and constant supervision as well as forproviding necessary information regarding the project &

also for their support in completing the project.

I would like to express my gratitude towards my parents

& member of ITM Universe for their kind co-operation

and encouragement which help me in completion of this

project.

I would like to express my special gratitude and thanks

to industry persons for giving me such attention and

time.

My thanks and appreciations also go to my colleague in

completing the project and people who have willingly

helped me out with their abilities.

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Sr.number Name Pg.

no.

1. Cover page 1

2. Title page 2

3. Acknowledgement 3

4. Introduction 55. Product 7

6. P&l a/c 8

7. Bal. sheet 9

8. Cash flow statement 109. Calculation of tax 11

10. Ratio analysis 12-17

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Wipro limited

Introduction:

Wipro Limited(Western India Products) is a global informationtechnology (IT) services company headquartered in. As of 2011, Wipro is

the second largest IT services company by turnover in India and employs

more than 120,000 people worldwide as of March 2011. Wipro provides

outsourced research and development, infrastructure outsourcing,

business process outsourcing (BPO) and business consulting services.

The company operates in three segments: IT Services, IT Products,

Consumer Care and Lighting. It is 9th most valuable brand in India

according to an annual survey conducted by finance and The EconomicTimes in 2010.

Wipro has been actively working towards in the field of social and

community development. Their primary focus is on education. It believes

that education is the fundamental enabler of social change.

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Chairman of Wipro:

AZIM HASHIM PREMJI

Azim Hashim Premji (born 24 July 1945) is an Indian and who isthe chairman of, guiding the company through four decades ofdiversification and growth to emerge as one of the Indian leader inthe software industry.

According to, he is currently the third wealthiest Indian, and 36thrichest in the world, with a personal wealth of US$16.8 billion in2011. In 2000, he was voted among the 20 most powerful men inthe world by Asia week.

He has twice been listed among the 100 most influential people byTIME Magazine, once in 2004 and more recently in 2011.

Premji owns 74% of Wipro Limited, which started off manufacturinghydrogenated cooking fats along with consumer products. It grewfrom a company of US $2.5 million to a giant of almost $7 billion

under Premji's leadership. Wipro Technologies, the Global IT Business of the company, is one

of India's largest software companies and is ranked among the top100 technology companies globally.

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@ Products

1. IT Products(software)

2. Consumer care Products 3. Wipro

Light

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P&L a/c

Mar'11 Mar'10 Mar'09

12 mths 12 mths 12 mths

Income

Sales Turnover 26401.2 23006.3 21612.8

Less: Excise Duty 100.7 84.3 105.5

Net Sales 26300.5 22922 21507.3Other Income 603.3 866.7 (-480.4)

Stock Adj. 31.6 111 (-3.80)

Total Income 26935.4 23899.7 21023.1

Expenditure

Raw Materials 3805.6 3768.8 3438.8

Power & Fuel cost 199.7 141.4 154

Employee Cost 10937.4 9062.8 9249.8

Other Manufacturing Expenses 2780.2 2145.3 1687.8

Selling and Admin Expenses 1,703.30 1,491.40 1,523.00

Miscellaneous Expenses 1145 921.8 691.4

Preoperative Exp. Capitalized 0 0 0

Total Expenses 20,571.20 17,531.50 16,744.80

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Balance sheet of Wipro

Mar'11 mar'10 Mar'09

12 mths 12 mths 12mths

Sources of funds

Equity Share Capital 490.8 293.6 293

Share Application Money 0.7 1.8 1.5

Preference Share capital 0 0 0

Reserves 20829.4 17396.8 12220.5

Net worth 21320.9 17692.2 12515

Secured Loans 0 0 0

Unsecured Loans 4744.1 5530.2 5013.9

Current Liabilities 5290 4874.2 5564.3

Provisions 2764.8 2230.8 1810.7

Total Liabilities 34119.8 30327.4 24903.9

Application of Funds

Gross Block 7779.3 6761.3 5743.3

Less: acc. Depreciation 3542.3 3105 2563.7Net Block 4237 3656.3 3179.6

CWP 603.1 991.1 1311.8

Investment 10813.4 8966.5 6895.3

Current Assets

Inventories 724.9 606.9 459.6

Sundry Debtors 5781.3 5016.4 4446.4

Cash & Bank Balance 2334.2 1938.3 1902.1

Total current assets 8840.4 7561.6 6808.1

Loans & adv. 6756.8 5425.9 4202

Fixed deposits 2869.1 3726 2507.1

Total assets 34119.8 30327.4 24903.9

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Cash flow of Wipro


12 mths 12 mths 12 mths

Net PBT 5705.5 5688.8 3547.9Net Cash From Operating 3710.5 4477.4 4344.5

less: Net Cash (used in)/ from InvestingActivities 1474 3064.6 3662.7Less: Net Cash(used in)/From Financing

Activities 2732.6 96.2 70.7Less: Increase In Cash and CashEquivalents 496.1 0 0

Add: decrease in Cash and CashEquivalents 0 1316.6 611.1

Opening Cash & Cash Equivalents 5699.4 4347.7 3798.1

Closing Cash & Cash Equivalents 5203.3 5664.3 4409.2

Calculation of tax

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Interest 58.6 99.8 196.8

PBDT 6,305.60 6,268.40 4,081.50

Depreciation 600.1 579.6 533.6

Other Written Off 0 0 0

Profit Before Tax 5,705.50 5,688.80 3,547.90

Extra-ordinary items 0 0 0

PBT (Post Extra-ord

Items) 5,705.50 5,688.80 3,547.90

Tax 861.8 790.8 574.1

Reported Net Profit 4,843.70 4,898.00 2,973.80

Total Value Addition

16,765.6

0 13,762.70 13,306.00

Preference Dividend 490.8 0 0Equity Dividend 981.8 880.9 586

Corporate Dividend Tax 220.4 128.3 99.6

Per share data (annualized)

Shares in issue (lakes) 24,544.09

14,682.1

1 14,649.81

Earnings Per Share (Rs) 17.74 33.36 20.3

Equity Dividend (%) 200 300 200

Book Value (Rs) 86.86 120.49 85.42

1. Gross profit ratio

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Gross profit ratio= G.P *100

Net seals


G.P 6305.6 6268.4 4081.5

Net Sales 26300.5 22922 21507.3

Gross Profitratio 23.98 27.35 18.98

Gross Profit

6305.60 6268.40

4081.50

26300.50

22922.0021507.30

0.00

5000.00

10000.00

15000.00

20000.00

25000.00

30000.00


yeras

a

mt.in

G.P Net Sales

Companies gross profit is low in 2009 its

increasing in 2010 by 28% but in this yearcompanys gross profit goes down to 23% in

2011. But company is in good position

compare to 2009.

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2. Net Profit Ratio

Net Profit Ratio= Net Profit *100

Net sales


Net profit 6364.2 6368.2 4278.3

Net Sales 26300.5 22922 21507.3

Net Profit ratio(%) 24.198019 27.78204345 19.89231563

net profit

6364.20 6368.20

4278.30

26300.50

22922.00

21507.30

0.00

5000.00

10000.00

15000.00

20000.00

25000.00

30000.00


year

Rs.

incr

Net profit Net Sales

Companys net profit is high in 2011 compare

to 2009 but its low compare to last year 2010.

Its shows operating efficiency of the firm is

less compare to 2010.

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3. Operating Profit Ratio

Operating Profit Ratio = Operating Profit * 100

Net sales


Operating Profit 5760.9 5501.5 4758.7

Net Sales 26300.5 22922 21507.3

Operating Profit ratio(%) 21.9041463 24.00095978 22.12597583

Operating profit

5760.90 5501.50 4758.70

26300.50

22922.0021507.30

0.00

5000.00

10000.00

15000.00

20000.00

25000.00

30000.00


year

Rs.inCr.

Operating Profit Net Sales

Companies operating profit is low in 2011

compare to 2009 and 2010 which is shown in

graph.

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3. Operating exp. Ratio

Operating exp. Ratio= C.O.G.S + Administrat exp.+ Selling Exp.*100

Net Sales


Cost of goods sold 6554.2 5803.1 5130.4

Selling & addmin exp. 1703.3 1491.4 1523

Net Sales 26300.5 22922 21507.3

Ope. Exp. Ratio (%) 31.3967415 31.82313934 30.93554282

op. exp. profit

6554.2 5803.1 5130.4

1703.3 1491.4 1523

26300.50

22922.0021507.30

0

5000

10000

15000

20000

25000

30000


year

Rs.

in

Cr.

Cost of goods sold Selling & addmin exp. Net Sales

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4. Debt-Equity Ratio

Debt-equity Ratio = Debt (long term debt)

Net worth


Debt (secure +

unsecure) 4744.1 5530.2 5013.9Equity 21320.9 17692.2 12515

Debt eq. ratio 0.22250937 0.312578424 0.400631243

debt eq ratio

4744.105530.20 5013.90

21320.90

17692.20

12515.00

0.00

5000.00

10000.00

15000.00

20000.00

25000.00


year

Rs.

in

Cr.

Debt (secu + unsecu) equity

Companys debt is low in 2011 its shows

company takes less risk camper to 2010 and

2009.

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5. Current Ratio

Current Ratio = Current assets

Current Liabi.


Current Assets 8840.40 7561.60 6808.10

Current Liabilities 8054.80 7105.00 7375.00

Current Ratio 1.10 1.06 0.92

current Ratio

8840.40

7561.60

6808.10

8054.807105.00 7375.00

0.00

2000.00

4000.00

6000.008000.00

10000.00


year

Rs.

inCr

Current Assets Current Liabilities

In this companys having more asset than the

last two year its shows companys good

position in its investing activity.

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Conclusion:

The primary goal of this report of analyzing ofWipro Ltd. Accounting activity throughout the

year and shown the position of the company in

now a days. For that I am analyzing the

balance sheet of company and also there p & l

and cash flow. As per that companies position

in 2011 market is better than 2009, but its

less than compare to 2010. But as per thecash flow companies position is good because

its generating more cash from operating

activity and its also purchased some assets in

this year 2011. Its shows companies having

future plan for expansion of his business.

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Wipro Limited.docx(Tushar).Doc2003 Final

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