Wipro Finance Report

‘Wipro Limited’
PREFACE
Dharmsinh desai institute of Business Administration was started in the year

1999 to meet the requirement of skill management personnel. These institutes
provide both theoretical and practical knowledge.
Practical knowledge is very inevitable for the mangers of tomorrow. It open
the corporate work and provide technical knowledge how to us.
As the student of this institute, I am required to prepare a project. It consists
of WIPRO. I proudly present my practical knowledge through this report.
I am pleased to submit the findings of the project report for the purpose of
evaluation by the examiners. I also express that this report was important for me
because I got the practical study of the management.
Prepared By: Tejas Patel 1

‘Wipro Limited’
ACKNOWLEDGEMENT
I am glad to make report on the company ‘WIPRO’ at second year of

Business Administration at Dharmsinh Desai University. This report helps me to
learn financial aspects of the business.
I am sincerely thankful to our professors in charge of financial management
especially to Prof. Rashmi madam for providing Important and effective guidance
in proper by this report. Also my regards to G.S.Shah the Director of our institute
who made possible and easy the financial management by practical approach.
I am also thankful to Faculty of Business Administration without there
encouragement the report would have not possible.
TEJAS N. PATEL
S.Y. B.B.A
Roll No: - 51

‘Wipro Limited’
INDEX
No. Particular Page No.
1 General Information 4
2 Ratio Analysis 13
3 Ratio Calculation 17
4 Ratio Summary 41
5 Accounting Policy 43
6 Director’s Report 48
7 Auditor’s Report 52
8 Cash Flow Statement 55
9 Common Size Statement 58
10 Conclusion 63

‘Wipro Limited’

‘Wipro Limited’
NAME : WIPRO LIMITED
ADDRESS: Wipro Limited,

Doddakannelli,
Sarjapur Road,
Bangalore-56035,
India
BOARD OF DIRECTORS :
1) Dr.Ashok Ganguly
2) B. C. Prabhakar
3) Bill owens
4) Dr.Jagidsh N sheth
5) N. vaghul
6) P. M. Sinha
7) Suresh C. senapaty
8) Girish S. Paranjpe9) Suresh Vaswani

‘Wipro Limited’
AWARDS :
W INNER OF NDTV P ROFIT B USINESS L EADERSHIP A WARDS

2009 - S OFTWARE AND H ARDWARE CATEGORY
W IPRO FIGURED IN THE JOINT SECOND POSITION IN THE LIST OF

T OP 5 G REEN E LECTRONICS B RAND AS PER THE LATEST EDITION
OF THE G REENPEACE G UIDE TO G REENER E LECTRONICS ,
BECAUSE OF OUR STRONG FOCUS ON E - WASTE MANAGEMENT
AND CLIMATE CONTROL .
W IPRO ’ S WEBSITE WAS AWARDED THE W EB A WARD "F OR

O UTSTANDING A CHIEVEMENT IN W EB D EVELOPMENT " BY W EB
M ARKETING A SSOCIATION .
W INNER OF 2009 A SIAN MAKE AWARDS - RECOGNIZED FOR

TRANSFORMING ENTERPRISE KNOWLEDGE INTO SHAREHOLDER
VALUE , KNOWLEDGE SHARING AND ENTERPRISE - WIDE
COLLABORATION
W INNER IN THE 2009 ASTD (A MERICAN S OCIETY OF T RAINING

AND D EVELOPMENT ) BEST A WARD

‘Wipro Limited’
B EST N EW BPO L OCATOR A WARD FOR W IPRO BPO AT THE

I NTERNATIONAL I NFORMATION AND C OMMUNICATIONS
T ECHNOLOGY (ICT) A WARDS
A ZIM P REMJIRECEIVES PRESTIGIOUS G LOBAL V ISION A WARD

FOR FURTHERING I NDIA -US RELATIONS FROM US-I NDIA
B USINESS C OUNCIL - J UNE 2009
W INNER - I NFOMATICA R ETAIL V ERTICAL I NDUSTRY AWARD

JOINTLY WITH A LEADING RETAIL CUSTOMER - J UNE 2009
W IPRO RECEIVED THE S ALESFORCE . COM T OP P ARTNER A WARD

FOR FY09 FOR I NDIA AND SAARC - J UNE 2009
M R .L AXMAN B ADIGA , C HIEF I NFORMATION O FFICER (CIO)

FEATURES IN THE FIRST - EVER G LOBAL CIO 50 L IST INSTITUTED
BY I NFORMATION W EEK - M AY 2009
B EST N EW BPO L OCATOR A WARD FOR W IPRO BPO AT THE

I NTERNATIONAL I NFORMATION AND C OMMUNICATIONS
T ECHNOLOGY (ICT) A WARDS - M ARCH 2009
T OP N ETWORK I NTEGRATION C OMPANY - V OICE AND D ATA ,

2008-2009
T OP N ETWORK M ANAGEMENT S ERVICES P ROVIDER - V OICE AND

‘Wipro Limited’
D ATA , 2008-2009
W INNER OF THE A LL S TARS A WARDS AT T HE N ETWORK W ORLD

A SIA - D EC 2008
A UTHORIZED EMC S IGNATURE P ARTNER IN S OUTH A SIA
B EST TSG P ARTNER OF HP IN S YSTEM I NTEGRATOR CATEGORY
N ETWORK I NTEGRATOR OF THE Y EAR 2008
W INNER OF THE I NDIAN MAKE A WARD , 2008 RECOGNIZED FOR

TRANSFORMING ENTERPRISE KNOWLEDGE INTO SHAREHOLDER
VALUE , KNOWLEDGE SHARING AND ENTERPRISE - WIDE
COLLABORATION - D EC 2008
W IPRO T ECHNOLOGIES : W INNER OF I NDIAN MAKE A WARD -

D EC 2008
W INNEROF SAP® P INNACLE A WARD FOR THOUGHT -

LEADERSHIP AROUND ENTERPRISE SOA - J UNE 2008
SAP P INNACLE A WARD 2008 “B EST SME C HANNEL P ARTNER

FOR THE A SIA P ACIFIC REGION ”
W IPRO W INS I NTERNATIONAL I NSTITUTE FOR S OFTWARE

T ESTING ’ S S OFTWARE T ESTING B EST P RACTICE A WARD
O NLY T IER 1 N ETWORK I NTEGRATOR , 2007-2008 -

‘Wipro Limited’
C OMMUNICATIONS T ODAY
B EST S YSTEM I NTEGRATOR AWARD BY N ETAPP 2007-08
B EST EMC T ECHNOLOGY P ARTNER FOR THE Y EAR 2007-08
W IPRO L IMITED (S YSTEMS & T ECHNOLOGY DIVISION ) HAS BEEN

RANKED BY GREENPEACE IN THEIR G UIDE TO G REENER
E LECTRONICS AS THE N UMBER 1 G REEN IT B RAND IN I NDIA
AND TOP 4 IN THE WORLD AMONG THE G LOBAL G REEN B RANDS
T OP S ALES A CHIEVEMENT P ARTNER AND B EST P OST S ALES

S UPPORT P ARTNER , 2007 - C ISCO
W IPRO TOPS G LOBAL MAKE A WARD 2007
G OLDEN P EACOCK I NNOVATION M ANAGEMENT A WARD 2007 BY

THE I NSTITUTE OF D IRECTORS , UNDER THE C HAIRMANSHIP OF
J USTICE P N B HAGWATI , F ORMER C HIEF J USTICE OF I NDIA AND
C HAIRMAN - G OLDEN P EACOCK A WARDS
N ATIONAL P ARTNER OF THE Y EAR 2007A WARDFROM

M ICROSOFT : I NDIA ’ S FIRST EVER M ICROSOFT P LATINUM
P ARTNER A WARD
W IPRO AWARDED HP’ S B EST A PPLICATION S OLUTION

I MPLEMENTATION FOR CREATING WORLD - CLASS BTO SERVICE
PRACTICE (2006)

‘Wipro Limited’
W IPRO AND N ORTEL WIN O UTSOURCING E XCELLENCE A WARD

(2006)
W IPRO - ONLY I NDIAN COMPANY IN THE B USINESS W EEK ’ S IN25

“C HAMPIONS OF I NNOVATION ” LIST .
W IPRO BPO R ECEIVES P RESTIGIOUS ‘O UTSOURCING E XCELLENCE ’

A WARD
W INNER OF E VEREST G ROUP ’ S ‘O UTSOURCING E XCELLENCE ’

A WARD
N AMED I NDIA T IMES ‘BPO C OMPANY OF THE Y EAR ’
NASSCOM CONGRATULATES W IPRO T ECHNOLOGIES AS

SHOWCASE COMPANY FOR IT INNOVATION IN I NDIA 2005
BEST A WARD FOR INNOVATIVE APPROACHES TO WORKPLACE

LEARNING : ASTD, O CT 2005
G LOBAL MAKE 2005 A WARD : M OST A DMIRED K NOWLEDGE

E NTERPRISE STUDY : T ELEOS , O CT 2005
W IPRO ’ S G URGAON DEVELOPMENT CENTRE AWARDED P LATINUM

RATING : US G REEN B UILDING C OUNCIL , S EP 2005
N ATIONAL A WARD FOR E XCELLENCE IN C ORPORATE

G OVERNANCE : C OMPANY S ECRETARIES OF I NDIA , D EC 2004
AUDITOR:-

‘Wipro Limited’
B S R & Co.
Chartered Accountants
BRIEF HISTOR :-
Wipro limited is an information technology service company. The company

Provide a range of IT service, software solutions ,IT consulting , business process
outsourcing service and research and development service in the areas of hardware
and software organized in segments, which include Global IT service and product,
India and Asia pacific IT service and product, consumer care and Lighting and
others.
Wipro Technology is a global service Provide delivering technology –

driven business solution that meet the strategic objective of our clients. Wipro has
55+ ‘Center of Excellence’ that create solution around specific needs of industries
BANKERS :
Bank of Baroda
Bank of India
Corporation Bank
Exim Bank
ICICI Bank Limited
Indian Bank
Industrial Development Bank of India
State Bank of India
The Karnataka Bank Limited
UCO Bank
Yes Bank Limited
Axis Bank
HDFC Bank
HSBC Bank
Allahabad Bank

‘Wipro Limited’
National City Bank
Bank of America [U.S.]
K & H Bank
Standard Chartered Bank
COMPANY SECRETARY :
V. R AMACHANDRAN
PRODUCT :
D ESKTOPS
N OTEBOOKS
S ERVERS
L OOKETS
S URPERCONPUTIOG

‘Wipro Limited’

‘Wipro Limited’
Ratio Analysis:-
Meaning:
The financial statement is prepared and presented annually are of little use
for the guidance of prospective Investors, Creditors and even management. If
relationships between various related items in this financial statement are
established, they can provide useful clues to gauge accurately the financial health
and ability of business to make the profit. This relation between two related items
of financial statement is known as Ratio.
Ratio Analysis is a process of comparison of one figure against another and
interpreting the strength and weakness of the firm’s operation using those ratios.
Importance of Ratio Analysis:-
1. Profitability:-
Useful Information about the trend of the profitability ratio. The gross
profit ratio, net profit ratio and ratio of return on investment given a good idea of
profitability of the business. On the basis of these ratio, investors get an idea about
the overall efficiency of the business, the management gets an idea about the
efficiency of there managers and bank as well as other creditors draw useful
conclusion about the repaying capacity of the borrowers.
2.Liquidity:-
In fact, the use of ratio was made initially to ascertain the liquidity of the
business. The Current ratio, Liquid ratio and Acid test ratio will tell whether the
business will be able to meet its current liabilities as and when they mature. Bank

‘Wipro Limited’
and other lenders will be able to conclude from this ratio whether the firm will be
able to pay regularly the interest and loan installments.
3.Efficiency:-
The turnover ratio are excellent guides to measure the efficiency of the
manager. For example- The stock turnover will indicate how efficiently the sales is
being made the debtors turnover will indicate the efficiency of collection
department and assets turnover shows the efficiency with which the assets are used
in business. All such ratio related to sales present a good picture of the success or
otherwise of the business.
4.Inter Firm Comparison:-
The absolute ratio of a firm are not of much use, unless they are compared
with the similar ratio of the other firm belonging to the same industry. This is inter
firm comparison, which shows the strength and weakness of the firm and will
indicate corrective measures.
5. Indicate Trend:-
The ratio of the last three to five years will indicate the trend in the
respective fields. For example- The current ratio of a firm is lower than
the industry average but if the ratio of last five year shows of a company
for one year may compare favorably with industry average but, if its
trend show a deteriorating position, it is not desirable, only ratio analysis
will provide this information.
6.Useful for Budgetary Control:-

Regular budgeting report are prepared in a business where the system of
budgetary control is in use. If various ratio are presented in these report, it will give
a fairly good idea about various aspects of financial position.

‘Wipro Limited’
7.Useful for Decision Making:-
Ratios guide the management in making some of the important decision.

Suppose the liquidity ratio show an unsatisfactory position, the management may
decide to get additional liquid funds. Even for the capital expenditure decisions,
the ratio of return on investment will guide the management. In efficiency of
various department can be judged on the basis of their profitability ratios and
efficiency of each department can thus be determined.

‘Wipro Limited’

‘Wipro Limited’
Ratio calculations:-
Profitability Ratio:-
1. Gross Profit Ratio:-
Meaning:-
This ratio measures the gross earning of the company as compared to
its net sales. If the ratio is less it shows the inefficiency of the company’s
management.
Formula:-
Gross profit Ratio: Gross profit X 100
Sale
2009 = 148700×100
215073
= 69.12%
2008 = 117405×100
174926
= 67.12%
Interpretation:-
At the end of the year 2009 the gross profit ratio is 69.14% i.e. for
the sales of 100 Rs, 69.14 Rs is recovered from the operation of business.
At the end of the year 2008 the gross profit ratio is 67.12% i.e.
for the sales of 100 Rs, 67.12 Rs is recovered from the operation of the
business.

‘Wipro Limited’
Conclusion:-
Thus we can conclude that there is increase in gross profit of current year
than that of the previous year i.e. 2008 by 2.02%.
Graph:-
Gross Profit Ratio
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2009 2008

‘Wipro Limited’
2.NET PROFIT RATIO:-
Meaning:
The ratio measures the net earning of the company as compared to the net
sales of the company. This ratio help to measure the overall profitability
performance of the company.
Formula:-
NET PROFIT RATIO:- = Net profit X 100

Sale
29738
2009 = 215073 ×10 0
= 13.83%
30636
2008 = 174926 ×100
= 17.51%
Interpretation:-
At the end of the year 2009, the net profit ratio was 13.83%. This ratio
interprets that at the sales of 100 Rs the company recovers 13.83 Rs on the sales of
100 Rs.
At the end of the year 2008, the net profit ratio was 17.51%. That means at
the sales of 100 Rs, the company recovers 17.51 Rs.

‘Wipro Limited’
Conclusion:-
Thus we can conclude that there is an increase in the profit of the company
in the current year i.e. 2009 than that of previous year. The increase is of 3.68%.
Graph:-
Net Profit Ratio
18
16
14
12
10
8
6
4
2
0
2009 2008

‘Wipro Limited’
Composite Ratio:-
1.Return on Capital Employed:-
Meaning:-
It is an index of the profitability of business and it is obtained by comparing

net profit with capital employed. The term capital employed includes share capital,
reserves and long term loan such as debentures. In this ratio net profit is profit
before deducting interest and taxes i.e. earning before interest and taxes (EBIT).
Formula:-
35479
2009 = 175288 ×100
=20.24%
34697
2008= 154331 ×100
= 22.48%
Interpretation:-
At the end of the year 2008, the return on capital employed is 22.48%. It
means that for Rs 22.48 the capital employed is of Rs 100.
At the end of the year 2009, the return on capital employed is 20.24% that means
that for Rs 20.24 the capital employed is of Rs 100.

‘Wipro Limited’
Conclusion:-
Thus we can conclude that there is Increase in capital employed ratio. It also
shows that the company had used its capital employed efficiently.
Graph;-
Return on Capital Employed
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2009 2008

‘Wipro Limited’
2.Return on Shareholders Fund:-
Meaning:-
This ratio is used to judge the efficiency which the shareholder fund are
employed in business. Shareholder fund includes share capital and reserves. It
indicates whether the return on shareholder fund is in relation to the risks that they
undertake. It measures the return that the shareholder get as compared to there
investments.
Formula:-
Profit After Tax
Return on Shareholders Fund= x 100
Sre h oldered fund
29738
2009 = 125149 x100
=23.76%
30633
2008 = 116107 x100
=26.38%
Interpretation:-
At the end of the year 2009, the return on the shareholder fund is of 23.76%.
It shows that when the shareholder invests 100 Rs in a company i.e. he get in
return Rs 23.76for every 100 Rs investments.

‘Wipro Limited’
At the end of the year 2008, the return on shareholder fund is of 26.38%. It
shows that when the shareholder invests 100 Rs in a company i.e. he get in return
Rs 26.38 for every 100 Rs investments.
Conclusion:-
So we can conclude that there is a decrease in ratio of current year against

previous year by 2.62%, so it indicates that the company had not properly utilized
there shareholder fund.
Graph:-
Return on Shareholder Fund Ratio
26.5
26
25.5
25
24.5
24
23.5
23
22.5
22
2009 2008

‘Wipro Limited’
3. Return on Equity Shareholder Fund:-
Meaning:-
It shows that what percentage of profit is earned on the capital invested by

ordinary shareholders. The ratio is obtained by dividing net profit after tax and
after deducting preference dividend by the amount of ordinary share capital plus
free reserve.
Formula:-
Return on Equity Shareholder Fund
PAT −Preference Dividend
¿ x100
equity Shareholder fund
27473
2009 = 141993 x100
= 19.04%
29230
2008 = 116624 x100
= 25.06%
Interpretation:-
At the end of the year 2009, the return on the equity shareholder fund is of
19.04%. It shows that when the shareholder invests 100 Rs in a company i.e .he get
in return Rs 19.04 for every 100 Rs investments.
At the end of the year 2008, the return on equity shareholder fund is
of 25.06%. It shows that when the shareholder invests 100 Rs in a company i.e. he
get in return Rs 25.06 for every 100 Rs investments.
So we can conclude that there is a decrease in ratio of current year against
previous year by 6.02%, so it indicates that the company had not properly utilized
there shareholder fund.

‘Wipro Limited’
Graph:-
Return on Equity Shareholder Fund Ratio
30
25
20
15
10
0
2009 2008
4.Earning Per Share (EPS):-
Meaning:-
The earning per share measures the earning available to the equity
shareholder as compared to their investment done at per share.
Formula:-
PAT −Preference Dividend
Earning par Share= x 100
No . of equity share
27473
2009 = 2930 x100

‘Wipro Limited’
= 9.38%
29230
2008 = 2923 x100
= 10%
Interpretation:-
This shows that in the year 2008, 10 decrease to 9.38 Rs per share in
the year 2009. It is not good position to the company. The profit per share of
the company is decreasing.
Conclusion:-
Thus we can conclude that the company’s i.e.Wipro’s earning per
share is being decreasing. The companies earning per has been decreased by
0.62Rs.
Graph:-
Earning Per Share
10
9.9
9.8
9.7
9.6
9.5
9.4
9.3
9.2
9.1
9
2009
2008

‘Wipro Limited’
5.Dividend Per Share (DPS):-
Meaning:-
It means the dividend available to the shareholder as compare to their

investment done per share.
Formula:-
Total Amount Declared
Dividend per share=
Number of Equity Share
5860
2009 = 2930
=2
5846
2008 = 2923
=2
Interpretation:-
As the dividend is the return which dividend is the return which really
earned by the share holder’s it must be that level which satisfies the share holder.
The dividend in both year 2009-08 was same so the investor are not attract with
policy of company.

‘Wipro Limited’
Graph:-
Dividend Per Share Ratio
2
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2009 2008
6.Operating Ratio:-
Meaning:-
It is a ratio showing relationship between cost of good sold plus

operating expense over net sales. It shows the efficiency of the business. The
higher the ratio, the less will be the margin available to proprietor.

‘Wipro Limited’
Formula:-
Cost of good sold +operating expence
Operating Ratio = Net Sale
x100
149594
2009 ¿ 215073 x100
= 69.55%
140229
2008 ¿ 174926 x100
= 80.16%
Interpretation:-
At the end of the year 2009, the operating ratio is of 80.16%. It shows
that against the sales of 100 Rs the operating expenses to the company is of
69.55 Rs.
At the end of the year 2008, the operating ratio is of 80.16% so it
indicates that against the sales of 100 Rs the operating expense to the
company is about 80.16 Rs.
Conclusion:-
So that we can conclude that there is a decrease in the operating ratio
as compared that to the previous year.

‘Wipro Limited’
Graph:-
Operating Ratio
82
80
78
76
74
72
70
68
66
64
2009 2008

‘Wipro Limited’
Liquidity Ratio:-
1. Current Ratio:-
Meaning:-
This ratio shows the proportion of current assets to the current

liability. It is also known as working capital ratio, which the capacity of the
company to pay off the liability which are due within twelve months period
as compared to its current assets. It shows whether the business will be able
to meet its current liability as an when they mature.
Formula:-
Current Assets
Current Ratio¿ Current Liability
135183
2009 = 74231
= 1.82:1
120064
2008 ¿ 47423
= 2.53:1
Interpretation:-
At the end of the year 2008, current ratio was 2.53:1. It shows that
against the liability of 1 Rs the company assets is of 2.53 to pay off the
liability.
At the end of the year 2009, the current ratio was 1.82:1. It
shows that against the liability of 1 Rs the company has assets of worth 1.82
to pay of the liability.

‘Wipro Limited’
Graph:-
Current Ratio
2.5
1.5
0.5
0
2009 2008
2.Liquid Ratio:-
Meaning:-
It means the liquid position of the company to pay off its debt within
very short period as compared to its liquid liabilities. It gives the better idea
of liquid position of the company.
Formula:-
Liquid Assets
Liquid Ratio=
Liqui d Liability
131138
2009 = 74231
= 1.77

‘Wipro Limited’
117889
2008 = 47423
= 2.48
Interpretation:-
In the year 2008, the liquid ratio was 2.48:1. It shows that against the
liability if 1Rs there is 2.48 Rs assets to pay off the liability.
In the year 2009, the liquid ratio was 1.77:1. It shows that against the
liability of 1 Rs there are 1.77 Rs assets to pay off the liability.
Conclusion:-
Thus we can conclude that there is a decrease in liquid ratio as
compared to that of the previous year.
Graph:-
Liquid Ratio
2.5
1.5
0.5
0
2009 2008

‘Wipro Limited’
3.Proprietary Ratio:-
Meaning:-
The ratio shows the proportion of proprietor fund to the total assets
employed in the business. The proprietor’s funds are shareholder equity
capital and reserve and surplus.
Formula:-
Proprietors fund
Proprietary Ratio ¿ Total Assets
x100
125149
2009 = 172288 x100
= 72.64%
116107
2008 = 154331 x100
= 75.23%
Interpretation:-
At the end of the year 2008, the proprietary ratio was 75.23%. It shows that
investment in total assets of 100 Rs the investment made by the owner is of 75.23
Rs.
At the end of the year 2009, the proprietary ratio was 72.64. It shows that
investment in total assets of 1 Rs the investment made by the owner is of72.64 Rs.
So we can conclude that there is a decrease in ratio as compared to
that of the previous year by 2.59 Rs.

‘Wipro Limited’
Graph:-
Proprietary Ratio
75.5
75
74.5
74
73.5
73
72.5
72
71.5
71
2009 2008
4.Acid Test Ratio:-
Mening:-
The measure of absolute liquidity may be obtained by comparing only
cash &bank balance as well as readily marketable securities with liquid
liability
Formate:-
Quick asset
Acid Test Ratio = Quick liability
44092
2009 = 74231

‘Wipro Limited’
= 0.59:1
37321
2008 = 47423
= 0.79:1
Interpretation:-
It shows company on the way of having good absolute liquidity. Company
has 0.60 paisa against 100 paisa of liability. It means in other from company has a
60 Rs of cash % bank balance against it’s 100 Rs of liability.
Graph:-
Acid tast Ratio
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
2009 2008

‘Wipro Limited’
Activity Ratio:-
1.Debtors Turnover Ratio:-
Meaning:-
This ratio shows the number of days taken to collect the dues of
credit sales. It measures the number of time the rotation of debtor’s cycle is
done during a year. It shows the efficiency or otherwise of the collection
policy of the enterprise.
Formula:-
Debtors + Bills Recivable

Debtors Turnover Ratio ¿ Credit Sales
X No. of Days
42992
2009 = 215073 x 365
= 72.96 day
36466
2008 = 174926 x 365
= 76.09 day
Interpretation:-
In the year 2008, the debtor’s ratio is of 76.09 days. It shows that within
76.09 days the company is able to collect the dues of its credit sales.
In the year 2009, the debtor’s ratio is of 72.96 days. It shows that within
72.96 days the company is able to collect the dues of its credit sales.

‘Wipro Limited’
Conclusion:-
Thus finally we can conclude that the debtor’s turnover ratio had
decreased to that of previous year.
Graph:-
Debtors Turnover Ratio
77
76
75
74
73
72
71
2009 2008

‘Wipro Limited’

‘Wipro Limited’
No. Particular 2009 2008
1 Gross profit Ratio 69.12% 67.12%
2 Net profit Ratio 13.83% 17.51%
3 Return on capital employed 20.24% 22.48%
4 Return on shareholder fund 23.76% 26.38%
5 Return on equity shareholder fund 19.04% 25.06%
6 Earning per share 9.38% 10%
7 Dividend per share 2% 2%
8 Operating Ratio 69.55% 80.16%
9 Current Ratio 1.82:1 2.53:1
10 Liquid Ratio 1.77% 2.48%
11 Proprietary Ratio 72.64% 75.23%
12 Acid Test Ratio 0.59% 0.79%
13 Debtor turnover Ratio 72.96 76..09

‘Wipro Limited’

‘Wipro Limited’
Significant of Accounting Policy.

Basic of Preparation of Financial Statement :
The Financial Statement are Prepared in accounting with India

generally accepted Accounting Principal under the historical cost
convention on the accrual basic except for certain financial instruments.
Which are measured on a fair value basic. GAAP comprise Accounting
standers of India and other generally accepted accounting principal in
India.
Value of Estimates;
The Preparation of financial standers require management to
make estimate and assumption that asset the reported amount of
asset and liabilities the disclosure of contingent asset and liabilities
on the date of the financial statement and reported amounts of
revenue and expenses during the period reported.
Goodwill:
Goodwill arising on consolidation acquisition of asset is not
mortised of asset is not mortised. It is tested for impartment on
periodic basic and written – off it fund impaired.
Use of Estimate;
The Preparation of financial statement requires management to
make estimate and assumption that asset the reported amount of
asset and liabilities the disclosure of contingent assets and
liabilities on the date of the financial statement and reported
amounts of revenue and expense during the period.

‘Wipro Limited’
Fixed asset, intangibal asset and work-in-process;

Fixed assets are stated of historical cost less accumulated
depreciation.
Intangible assets are stated at the consideration paid for
acquisition less accumulated amortization advance paid toward the
acquisition of fixed assets outstanding as of each balance sheet date
and the cost of fixed assets not ready for use before such date are
disclosed under capital work-in-process.
Investment:
Long term investment are stated at cost less provision for
diminution in value of such investment. Diminution on value is
provided for where the management is of the opinion that the
diminution is of other than temporary nature.
Inventories:
Finished good are valued at cost or net realizable value
whichever is lower other inventories primaries comprising material
and other supplies held for use in the course of production are valued
at cost less provision for obsolescence
Warranty:
The company accurse the estimated cost of warranties at the time
when the revenue is recognized.

‘Wipro Limited’
Foreign currency transaction:

The company is exposed to currency fluctuation on foreign
currency transaction accounted in the book of account at the
average rate for the month.
Transaction;
The difference between the rate of which foreign currency
transaction are account and the rate at which they are realized is
recognized in the profit and loss account.
Integeral operation
In respect of integral operation monetary asset and liabilities are
translated of the exchange rate prevailing at the date of the balance
sheet.
Provision for retirement benefits provident fund:
Employee receive benefit from provided fund, the employee
and employee each make monthly contribution to the plan equal to
12% of the covered employee’s salary.
Compensated absence:
The employee of the company are entitled to compensated
absence the employees can carry forward a position of the
unutilized accrued compensated absence.

‘Wipro Limited’
Gratuity:
In accordance with applicable India laws, the company
provides for gratuity, a defined benefit requirement plan
covering ,certain categories of employees. The company has an
employee gratuity fund managed by the life insurance corporation
of India
Earning per share:
The number of share used in computing diluted earning per
share comprises the weighted average share consider for deriving
basic earning per share and also the weighted average number of
equity share hold by controlled trust.
Diluted:
The number of share used in computing earnings per share
comprises the weighted average share considered for deriving basic
earnings per share and also the weighted average number of equity
share.

‘Wipro Limited’

‘Wipro Limited’
DIRECTORS’ REPORT:-
F INANCIAL P ERFORMANCE :
K EYASPECTS OF YOUR C OMPANY ’ S CONSOLIDATED FI NANCIAL

PERFORMANCE FOR W IPRO AND ITS GROUP COMPANIES AND
STANDALONE FI NANCIAL RESULTS FOR W IPRO L IMITED FOR THE YEAR
2008-09 ARE TABULATED BELOW : (R S . IN M ILLION )
G LOBAL E CONOMY
T HE ONGOING ECONOMIC CRISIS HAS SIGNIFI CANTLY IMPACTED

GLOBAL ECONOMIC GROWTH . A CCORDING TO W ORLD E CONOMIC
O UTLOOK U PDATE PUBLISHED BY THE I NTERNATIONAL M ONETARY
F UND IN J ANUARY 2009, THE GDP OF U NITED S TATES IS PROJECTED TO
CONTRACT BY 1.6% IN FI SCAL 2009 AND DURING THE SAME PERIOD
THE
GDP OF E URO AREA IS PROJECTED TO CONTRACT BY 2%. A SIGNIFI

CANT PORTION OF OUR EXPORTS ARE TO THESE ECONOMIES .
D IVIDEND
Y OUR D IRECTORS RECOMMEND A FI NAL D IVIDEND OF

200% (R S .4 PER EQUITY SHARE OF R S . 2/- EACH ) TO BE
APPROPRIATED FROM THE PROFI TS OF THE YEAR 2008-09
SUBJECT TO THE APPROVAL OF THE SHAREHOLDERS AT THE
ENSUING A NNUAL G ENERAL M EETING . T HE D IVIDEND WILL BE
PAID IN COMPLIANCE WITH APPLICABLE REGULATIONS . D URING
THE YEAR 2008-09, UNCLAIMED DIVIDEND OF R S .88,824/- WAS
TRANSFERRED TO THE I NVESTOR E DUCTION AND P ROTECTION F UND , AS

‘Wipro Limited’
REQUIRED BY THE I NVESTOR E DUCATION AND P ROTECTION F UND
(A WARENESS AND P ROTECTION OF I NVESTOR ) R ULES , 2001.
Investments in direct subsidiaries
D URING THE YEAR UNDER REVIEW , YOUR C OMPANY HAD

INVESTED AN AGGREGATE OF US $ 432 MILLION AS EQUITY , IN ITS
DIRECT SUBSIDIARIES W IPRO C YPRUS P RIVATE L IMITED , W IPRO
H OLDINGS (M AURITIUS ) L IMITED , W IPRO I NC AND W IPRO
T ECHNOLOGY S ERVICES L IMITED .
R ESEARCH & D EVELOPMENT
R EQUIREMENT UNDER R ULE 2 OF C OMPANIES (D ISCLOSURE OF

P ARTICULARS IN THE R EPORT OF B OARD OF D IRECTORS ) R ULES , 1988
REGARDING T ECHNICAL A BSORPTION AND R ESEARCH & D EVELOPMENT
IN F ORM B IS GIVEN IN PAGE 4 TO THE EXTENT APPLICABLE .
C ONSERVATION OF E NERGY
T HE C OMPANY HAS TAKEN SEVERAL STEPS TO CONSERVE ENERGY

THROUGH ITS "E CO E YE " INITIATIVES DISCLOSED SEPARATELY AS PART
OF THIS A NNUAL R EPORT . T HE INFORMATION ON C ONSERVATION OF

E NERGY REQUIRED UNDER S ECTION 217(1)( E ) OF THE C OMPANIES A CT ,
1956 READ WITH R ULE 2 OF THE C OMPANIES (D ISCLOSURE OF
P ARTICULARS IN THE R EPORT OF B OARD OF D IRECTORS ) R ULES , 1988
IS PROVIDED IN PAGE 4 OF THIS ANNUAL REPORT .
Directors’ Responsibility Statement
O N BEHALF OF THE D IRECTORS I CONFI RM THAT AS REQUIRED

UNDER S ECTION 217 (2AA) OF THE C OMPANIES A CT , 1956. A ) I N THE
PREPARATION OF THE ANNUAL ACCOUNTS , THE APPLICABLE
ACCOUNTING STANDARDS HAVE BEEN FOLLOWED AND THAT NO
MATERIAL DEPARTURES ARE MADE FROM THE SAME ; B ) W E HAVE

‘Wipro Limited’
SELECTED SUCH ACCOUNTING POLICIES AND APPLIED THEM
CONSISTENTLY AND MADE JUDGEMENTS AND ESTIMATES THAT ARE
REASONABLE AND PRUDENT SO AS TO GIVE TRUE AND FAIR VIEW OF THE
STATE OF AFFAIRS OF THE C OMPANY AT THE END OF THE FI NANCIAL
YEAR AND OF THE PROFI TS OF THE C OMPANY FOR THE PERIOD ; C ) W E
HAVE TAKEN PROPER AND SUFFICIENT CARE FOR THE
MAINTENANCE OF ADEQUATE ACCOUNTING RECORDS IN ACCORDANCE
WITH THE PROVISIONS OF THE C OMPANIES A CT , 1956 FOR
SAFEGUARDING THE ASSETS OF THE C OMPANY AND FOR PREVENTING
AND DETECTING FRAUD AND OTHER IRREGULARITIES ; AND D ) W E HAVE
PREPARED THE ANNUAL ACCOUNTS ON A GOING CONCERN BASIS .
A CKNOWLEDGEMENTS AND A PPRECIATION
Y OUR D IRECTORS TAKE THIS OPPORTUNITY TO THANK THE

CUSTOMERS , SHAREHOLDERS , SUPPLIERS , BANKERS , BUSINESS
PARTNERS / ASSOCIATES , FI NANCIAL INSTITUTIONS AND C ENTRAL AND
S TATE G OVERNMENTS FOR THEIR CONSISTENT SUPPORT AND
ENCOURAGEMENT TO THE C OMPANY . I AM SURE YOU WILL JOIN OUR
D IRECTORS IN CONVEYING OUR SINCERE APPRECIATION TO ALL
EMPLOYEES OF THE C OMPANY FOR THEIR HARD WORK AND
COMMITMENT . T HEIR DEDICATION AND COMPETENCE HAS ENSURED
THAT THE C OMPANY CONTINUES BE A SIGNIFI CANT AND LEADING
PLAYER IN THE IT SERVICES INDUSTRY . F OR AND ON BEHALF OF THE
B OARD OF D IRECTORS
A ZIM H. P REMJI ,
C HAIRMAN
B ANGALORE , J UNE 19, 2009

‘Wipro Limited’

‘Wipro Limited’
They have audited the attached consolidated balance sheet of Wipro Limited
(‘the Company’) and subsidiaries (collectively called ‘the Wipro Group’) as at
March 31, 2009, the consolidated profi t and loss account and the consolidated
cash fl ow statement for the year ended on that date, annexed thereto. These fi
nancial statements are the responsibility of the Company’s management. Their
responsibility is to express an opinion on these fi nancial statements based on their
audit.
They conducted their audit in accordance with auditing standards generally

accepted in India. Those standards require that they plan and perform the audit to
obtain reasonable assurance about whether these consolidated fi nancial statements
are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the fi nancial statements. An
audit also includes assessing the accounting principles used and signifi cant
estimates made by management, as they’ll as evaluating the overall fi nancial
statement presentation. They believe that their audit provides a reasonable basis for
their opinion.
They report that the consolidated fi nancial statements have been prepared
by the Company’s management in accordance with the requirements of
Accounting Standard (AS) 21, Consolidated Financial Statements and Accounting
Standard (AS) 23, Accounting for Investments in Associates in Consolidated
Financial Statements issued by the Institute of Chartered Accountants of India
(‘ICAI’).
Without qualifying their opinion, they draw attention to Note 4 of the Notes
to Accounts that describes the early adoption by the Company of Accounting
Standard (AS) 30, Financial Instruments: Recognition and Measurements, along
with limited revisions to other accounting standards, issued by the Institute of
Chartered Accountants of India. AS 30, along with limited revisions to the other
accounting standards, have not currently been notifi ed by the National Advisory
Council for Accounting Standards (NACAS) pursuant to the Companies

‘Wipro Limited’
(Accounting Standards) Rules, 2006 as per Section 211(3C) of the Companies Act,
1956. Had the Company not early adopted AS 30 and the related limited revisions,
profi t after taxation for the year ended March 31, 2009 would have been lotheyr
by Rs 3,044 million.
In their opinion and to the best of their information and according to the
explanations given to us, the said accounts give a true and fair view in conformity
with the accounting principles generally accepted in India:
(a) in the case of the consolidated balance sheet, of the state of affairs of the Wipro
Group as at March 31, 2009;
(b) in the case of the consolidated profi t and loss account, of the profi t of the
Wipro Group for the year ended on that date; and
(c) in the case of the consolidated cash fl ow statement, of the cash fl ows of the
Wipro Group for the year ended on that date. for
B S R & Co.
Chartered Accountants
Akeel Master
Partner
Membership No.: 046768
Bangalore
April 22, 2009

‘Wipro Limited’

‘Wipro Limited’
CASH FLOW STATEMENT:
Meaning:-
The cash flow statement is a historical statement and shows what is the
cash flow and outflow during the last year and what the actual cash balance
was on hand at the end of the last year.
Importance.:-
Efficient Cash Management

The finance manager has clear idea of cash recipient and cash payment’s of
cash resources be efficiently managed. Excess cash found at any time may be
profitable investment for the time benefit and the profitability is increased.
Useful for internal finance management.

The management can plan payment of dividend, repayment of loans,
purchase of machines or equipment etc. It has good idea about time when enough
cash will be on hand. This will avoid the possibility of borrowing funds at high rate
of interest.

‘Wipro Limited’
Information About Cash Receipt and Payment

Such statement will give information about the trend of cash receipt and
payment such information is useful to management in meeting any figure
contingency and also in sizing profitability.
Useful For Control
The historical cash flow statement prepared for last year is useful for
comparing the figure of cash budget and point of difference may be
located.
Easy in Obtaining Funds.
By comparing figure of cash flow statement and cash budget, the cash
planning control becomes more efficient liabilities are easily paid as and when they
mature in twin these facilities rising of addition funds easily when needed

‘Wipro Limited’

‘Wipro Limited’
Common size statement of Wipro Limited profit & loss

account for the year ended 31st March 2008-09.
Particular As at 31st March % As at 31st %
2009 March 2008
I Income
Sales 216128 176581
Excise duty 1055 1655
Net sales / services 215073 100% 174926 100%
Dividend 2265 1.07% 1403 0.78%
Interest 1879 0.89% 1411 o.79%
Other income 8948 4.25% 455 o.26%
Total 210269 178195
II Expenditure
Cost of good consumed
(i)opening stock 4045 2.31% 2175 1.51%
(ii)purchase 33628 19.23% 31393 21.87%
Less closing stock 3906 2.23% 4045 2.81%
manufacturing Expense 2606 1.49% 2998 2.08%
Selling expenses 5522 3.15% 5311 3.70%
Salaries, wages& other employee benefit 92422 52.87% 74079 51.62%
Managerial remuneration 76 0.04% 12 0.008%
Interest 1968 1.12% 1168 0.81%
Depreciation 5337 3.05% 4560 3.17%
Auditor’s remuneration 13 0.007% 11 0.007%
provision& doubtful debts 791 246 0.17%
Total 174790 143498
III profit before tax (I-II) 35479 20.29% 34697 24.17%
IV provision for taxation 5741 32.84% 4064 2.83%
V profit after tax 29738 17.01% 30633 21.34%
VII transfer to reserve & surplus

‘Wipro Limited’
Common size statement of ‘Wipro limited’ balance sheet for at March 31st
Particular As at 31st March 2009 % As at 31st March 2008 %
Liability
I Source of fund
(a)capital
Equity 2930 1.67% 2923 1.89%
(b)share application
money pending 15 0.008% 40 0.02%
(c)share issuable - 540 0.34%
(d)reserve & surplus
(i)capital reserve 1144 0.65% 1144 0.74
(ii)securities
premium account 27279 15.56% 25373 16.44%
(iii)restricted stock
unit reserve 2313 1.31 1817 1.17%
(iv)revenue reserve 108327 61.79% 85367 55.31%
(v)unrealized losses
on cash flow 16859 9.61% 1097 0.71%
2)Loan fund
(a)secured loans -
(other than debenture)
(b)unrealized loan 50139 28.60% 40 0.02%
Total 175288 154331 24.74%
Assets
II Application of
fund
(1)goodwill 447 0.25% 427 0.27%
(2)Fixed assets
a)Net block 31349 17.88 22395 14.51
b)capital work-in- 13118 7.48 13350 8.65
progress
(3)Investment
a)investment in 52418 29.90 30442 19.72
subsidies companies
unquoted
b)others
(i)quoted 15132 8.63 14211 9.20
(ii)unquoted 1295 0.73 348 0.22
(4)deferred tax 577 0.32 517 0.33
assets
(5)current assets,
loans
a)inventories 4597 2.62 4481 2.90
b)sundry debtors 42992 24.52 36466 23.62
c)loans& advance
(i)To subsidiary 3163 1.80 16196 10.49
company
(ii)To other 40339 23.01 25600 16.58

‘Wipro Limited’
d)cash & bank 44092 25.15 37321 24.18
Less:
III current liabilities
& provisions
(A)current liabilities 57164 32.61 33616 21.78
(B)provision 17067 9.73 13807 8.94
Net current assets 60952 34.77 72641 47.06
Total 175288 100 154331 100

‘Wipro Limited’
The units of Wipro ltd company is training it best to deliver social services
as well as earn respodable profit but with goal of earning profit they also care of
total sincerity of employee they give them full freedom to make free give them full
freedom to superior and provide them all basic ficilities.
They fulfill all government order means they pay the tax regularly and
take care of their shareholder as well as society. They are also fulfill their society.
They are also helpful their social responsibilities and helpful in the nature
calamities. Being a very sincerity company they are up to achieve their goals.
Under company profitability ratio provide two years sublicient in other

profitability ratio is normally so company should try to control all the expenses that
is financial exp., etc. and main step is the earning profit is more in the business.
Under company debtor & creditor ratio convin within the solenly or the
company in the company debtor ratio are shows the satisfactory position or the
company under the creditor ratio , period is very long so company should try to
reduce the period between the company and creditor ratio shows an unsatisfactory
position company should try to reduce the number or days. It takes in making
payment is it credit purchase also it would have an adverse effect on its reputation.
Company current , liquid and quick ratio are satisfied position but last
year the so, company try t5o do carry out it.

Wipro Finance Report

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‘Wipro Limited’

Dharmsinh desai institute of Business Administration was started in the year

Prepared By: Tejas Patel 1

I am glad to make report on the company ‘WIPRO’ at second year of

Prepared By: Tejas Patel 2

No. Particular Page No.

8 Cash Flow Statement 55

9 Common Size Statement 58

Prepared By: Tejas Patel 3

Prepared By: Tejas Patel 4

NAME : WIPRO LIMITED

ADDRESS: Wipro Limited,

Prepared By: Tejas Patel 5

W INNER OF NDTV P ROFIT B USINESS L EADERSHIP A WARDS

W IPRO FIGURED IN THE JOINT SECOND POSITION IN THE LIST OF

W IPRO ’ S WEBSITE WAS AWARDED THE W EB A WARD "F OR

W INNER OF 2009 A SIAN MAKE AWARDS - RECOGNIZED FOR

W INNER IN THE 2009 ASTD (A MERICAN S OCIETY OF T RAINING

Prepared By: Tejas Patel 6

B EST N EW BPO L OCATOR A WARD FOR W IPRO BPO AT THE

A ZIM P REMJIRECEIVES PRESTIGIOUS G LOBAL V ISION A WARD

W INNER - I NFOMATICA R ETAIL V ERTICAL I NDUSTRY AWARD

W IPRO RECEIVED THE S ALESFORCE . COM T OP P ARTNER A WARD

M R .L AXMAN B ADIGA , C HIEF I NFORMATION O FFICER (CIO)

B EST N EW BPO L OCATOR A WARD FOR W IPRO BPO AT THE

T OP N ETWORK I NTEGRATION C OMPANY - V OICE AND D ATA ,

T OP N ETWORK M ANAGEMENT S ERVICES P ROVIDER - V OICE AND

Prepared By: Tejas Patel 7

W INNER OF THE A LL S TARS A WARDS AT T HE N ETWORK W ORLD

A UTHORIZED EMC S IGNATURE P ARTNER IN S OUTH A SIA

B EST TSG P ARTNER OF HP IN S YSTEM I NTEGRATOR CATEGORY

N ETWORK I NTEGRATOR OF THE Y EAR 2008

W INNER OF THE I NDIAN MAKE A WARD , 2008 RECOGNIZED FOR

W IPRO T ECHNOLOGIES : W INNER OF I NDIAN MAKE A WARD -

W INNEROF SAP® P INNACLE A WARD FOR THOUGHT -

SAP P INNACLE A WARD 2008 “B EST SME C HANNEL P ARTNER

W IPRO W INS I NTERNATIONAL I NSTITUTE FOR S OFTWARE

O NLY T IER 1 N ETWORK I NTEGRATOR , 2007-2008 -

Prepared By: Tejas Patel 8

B EST S YSTEM I NTEGRATOR AWARD BY N ETAPP 2007-08

B EST EMC T ECHNOLOGY P ARTNER FOR THE Y EAR 2007-08

W IPRO L IMITED (S YSTEMS & T ECHNOLOGY DIVISION ) HAS BEEN

T OP S ALES A CHIEVEMENT P ARTNER AND B EST P OST S ALES

W IPRO TOPS G LOBAL MAKE A WARD 2007

G OLDEN P EACOCK I NNOVATION M ANAGEMENT A WARD 2007 BY

N ATIONAL P ARTNER OF THE Y EAR 2007A WARDFROM

W IPRO AWARDED HP’ S B EST A PPLICATION S OLUTION

Prepared By: Tejas Patel 9

W IPRO AND N ORTEL WIN O UTSOURCING E XCELLENCE A WARD

W IPRO - ONLY I NDIAN COMPANY IN THE B USINESS W EEK ’ S IN25

W IPRO BPO R ECEIVES P RESTIGIOUS ‘O UTSOURCING E XCELLENCE ’

W INNER OF E VEREST G ROUP ’ S ‘O UTSOURCING E XCELLENCE ’

N AMED I NDIA T IMES ‘BPO C OMPANY OF THE Y EAR ’

NASSCOM CONGRATULATES W IPRO T ECHNOLOGIES AS

BEST A WARD FOR INNOVATIVE APPROACHES TO WORKPLACE

G LOBAL MAKE 2005 A WARD : M OST A DMIRED K NOWLEDGE

W IPRO ’ S G URGAON DEVELOPMENT CENTRE AWARDED P LATINUM

N ATIONAL A WARD FOR E XCELLENCE IN C ORPORATE

Prepared By: Tejas Patel 10

Wipro limited is an information technology service company. The company

Wipro Technology is a global service Provide delivering technology –

Prepared By: Tejas Patel 11

Prepared By: Tejas Patel 12