COST & MANAGEMENT

ACCOUNTING
CIA- III

Aryan Garg (19212016)

Ayushmaan Panwar (19212019)
Evis Elezabeth Reji (19212028)
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Introduction
Wipro Limited is an Indian multinational corporation. It is a leading global information
technology, consulting and business process services company. It is headquartered in
Bangalore, Karnataka, India. In 2013, Wipro separated its non-IT businesses and formed the
privately owned Wipro Enterprises. They harness the power of cognitive computing, hyper-
automation, robotics, cloud, analytics and emerging technologies to help clients adapt to the
digital world and make them successful. It is a company recognized globally for its
comprehensive portfolio of services, strong commitment to sustainability and good corporate
citizenship, they have over 190,000 dedicated employees serving clients across six
continents. Together, they discover ideas and connect the dots to build a better and a bold
new future.

Wipro has shifted to Work from Anywhere model since March 2020 so employees can work
from anywhere in the world except Wipro office premises due to COVID pandemic.

The company was incorporated on 29 December 1945 in Amalner, Maharashtra by Mohamed

Premji as "Western India Palm Refined Oil Limited", later abbreviated to "Wipro".
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Balance Sheet of Wipro Ltd.

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Statement of Profit & Loss

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Ratios
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Ratio Analysis
1) Liquidity Ratio
a) Current Ratio-
 In the year 2018-19, the current ratio as calculated for the Wipro ltd. Was 2.95:1,
which got decreased in the year 2019-20 to 2.77:1
 Higher C/R means that the company is more capable in paying its current obligations.
 Since, the C/R is above 2.1, Wipro Ltd is adequetly liquid and will be able to pay off
its current obligations.

2) Solveny Ratio
a) Proprietary Ratio-
 In the year 2019-20, the proprietary ratio was 0.71:1 which was slightly lower
than the ratio in the year 2018-19 as it was 0.73:1
 It indicated the extent to which the proprietor financed the total assets of the
business.
 Ideal ratio is 0.60 to 0.75
 In both the years, the proprietary ratio fell under the ideal ratio, which states that
the company has a good financial position.

b) Interest Coverage Ratio-

 ICR was 19.8 times in the year 2018-19, which rose to 21.68 times in the year
2019-20.
 It indicates the number of times the interest charges have been covered by the
profits available to pay the interest.
 Higher ICR indicates that there are enough profits available to service the
debt.

c) Debt to Equity Ratio-

 D/E ratio was 0.20:1 in the year 2018-19, which got further decreased to 0.05:1 in
the year 2019-20.
 Lower D/E ratio indicates higher degree of protection enjoyed by the lender.
 Since the D/E ratio is less than 1 it indicates that assets are more funded by equity.
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3) Activity Ratio

a) Working Capital Ratio-

 W/C ratio was 1.52 times in the year 2018-19, and in the year 2019-20 it
was 1.72 times.
 Higher ratio indicates higher efficiency in utilization of working capital.
 A high edge in this ratio indicates a competitive edge in the industry.

4) Profitability Ratio

a) Return on Investment-
 ROI was 20.44 % in the year 2018-19 which increased to 23.62% in the
year 2019-20.
 Overall performance of the business is indicated through this ratio.
 An increase in ROI since last year indicates a rise in the overall
profitability of the enterprises.

b) Net Profit Ratio-

 Year 2019-20 saw an increase in the NPR from 15.82% in the year 2018-
19 to 17.22 %.
 Improvement in operational efficiency is indicated through an increase in
the NPR from last year.

5) Efficiency Ratio

a) Total assets turnover ratio-

 The ratio in the year 2018-19 was 0.71 which increased to 0.77 times in
the year 2019-20.
 This ratio indicates that how effeciently the assets of the company have
been used, and also shows the promise of profitability and efficiency of
the management.