WIPRO LTD.

G RO UP NO . – 11

A B H I N AV K A T A R I A – 2 2 0 2 0 3 4 3 0 0 4

AMAN KUMAR – 22020343010

G A U R AV N A N D A N – 2 2 0 2 0 3 4 3 0 3 5

SARTHAK BINDROO – 22020343062

V. V R A G H U R A M A S A R M A – 2 2 0 2 0 3 4 3 0 7 3

VA R U N K U M A R S I N H A - 2 2 0 2 0 3 4 3 0 7 6
QUESTIONS
a. PROFILE OF THE COMPANY’S BUSINESS - INCLUDING SUBSIDIARIES / JVS

b. STRENGTHS, WEAKNESSES, OPPORTUNITIES, THREATS (SWOT)

c. CREDIT RATING(S) OF THE COMPANY BY EXTERNAL RATING AGENCY(IES)

d. SIGNIFICANT ACCOUNTING POLICIES FOLLOWED BY THE COMPANY (IN

BRIEF)

e. KEY RATIOS

 Balance Sheet Ratios (with one line comments)

 Profitability Ratios - including DuPont Analysis (with one
line comments)
 Activity Ratios (with one line comments)
f. COMMENTS ON CASH FLOW STATEMENT OF THE COMPANY FOR THE YEAR
UNDER REVIEW

g. COMMENTS ON CONTINGENT LIABILITIES

h. SEGMENTAL RESULTS, AND ANY OTHER OBSERVATIONS ON ‘NOTES TO

ACCOUNTS’
QUESTIONS
i. COMMENTS ON THE BUSINESS RESPONSIBILITY REPORT - COVERING
ESG INITIATIVES AND CSR ACTIVITIES UNDERTAKEN; ALSO, ESG
SCORE(S) OF THE COMPANY

j. COMMENTS ON THE COMPANY’S CORPORATE GOVERNANCE AND

INTERNAL FINANCIAL CONTROLS

k. ‘KEY AUDIT MATTERS’ COVERED IN THE AUDITOR’S REPORT (IN BRIEF)

l. ANY OTHER ISSUE(S) FLAGGED BY THE AUDITORS - SUCH AS ‘EMPHASIS

OF MATTER’ OR ANY ‘QUALIFICATION’

m. BENEISH M SCORE & COMMENTS

n. ALTMAN Z SCORE & COMMENTS

o. PORTER’S FIVE FORCES - ANALYSIS & COMMENTS

p. YOUR VIEWS ON THE COMPANY’S OVERALL PERFORMANCE DURING

THE YEAR UNDER REVIEW

q. ANY SIGNIFICANT POST BALANCE SHEET EVENT(S)

P R O F I L E O F T H E C O M PA N Y ’ S B U S I N E S S -
INCLUDING SUBSIDIARIES / JVS
Wipro is a technologist, designer, strategist, and business partner to it’s
clients.
• The IT Services segment provides a range of IT and IT-enabled services
which include digital strategy advisory, customer-centric design,
consulting, infrastructure services, business process services, research
and development, cloud, mobility, and advanced analytics and
product engineering to leading enterprises worldwide.
• The IT Products segment provides a range of third-party IT products,
which allows Wipro to offer comprehensive IT system integration
services.
P R O F I L E O F T H E C O M PA N Y ’ S B U S I N E S S -
INCLUDING SUBSIDIARIES / JVS
Subsidiaries:

As on March 31, 2022, your Company had 140 subsidiaries and 1

associate.

Acquisitions, Disinvestments, Investments and Joint Ventures:

• In 2021, your Company acquired Capco and its subsidiaries, Ampion

Holdings Pty Ltd and its subsidiaries, Edgile, LLC and LeanSwift
Solutions, Inc. and its subsidiaries.

• In 2022, Wipro acquired Convergence Acceleration Solutions, LLC &

Rizing Intermediate Holdings, Inc. and its subsidiaries and carried out
the merger of Wipro do Brasil Servicos de Tecnologia Ltda, Brazil with
and into Wipro do Brasil Technologia Ltda, Brazil.

• During the financial year 2021-22, seven subsidiaries of Wipro were

deregistered
STRENGTHS, WEAKNESSES,
O P P O R T U N I T I E S , T H R E AT S ( S W O T )
Strength

Wipro’s strength comes from its key resources and capabilities, repeat
business i.e. good client relationship and strong leadership.

Weakness
It’s weakness is that it has Less emphasis on research and development
and Mainly deals with services. So, the operating margins are lesser when
compared to its competitors.

Opportunity

There is a huge growth opportunity in domestic market and company can

also take up product development projects.

Threats

Competition by other IT giants like TCS, Infosys and LTIMindtree and

attrition are major threats to the company
C R E D I T R AT I N G ( S ) O F T H E C O M PA N Y B Y
E X T E R N A L R AT I N G A G E N C Y ( I E S )
Moody's Investors Service: [ICRA]AAA (Stable)
The company reported a healthy operating profit margin (OPM)2 of 21.0%
in FY2022, against 23.9% in FY2021.
The ratings continue to favourably factor in Wipro’s continued strong
financial profile .
Fitch Ratings: A- (Stable)
Diversified Customer Base - Wipro has low customer concentration, with
its five- and 10 -largest clients contributing 12% and 20%, respectively, to
total revenue in FY21.
Standard & Poor's: A- (Stable)

Wipro Ltd.'s strong financial position and insignificant secured debt limit
subordination risk, in view of the rating agency.

The stable outlook on Wipro Ltd. reflects that the company will maintain
its good competitive position and profitability in coming 24 months
SIGNIFICANT ACCOUNTING POLICIES
F O L L O W E D B Y T H E C O M PA N Y ( I N B R I E F )
• Revenue from fixed price contracts, including software development,
and integration contracts, where the performance obligations are
satisfied over time, is recognized using the percentage-of-completion
method.

• Use of the percentage-of-completion method requires the Company to

determine the project costs incurred to date as a percentage of total
estimated project costs at completion. The estimation of total project
costs involves significant judgement and is assessed throughout the
period of the contract to reflect any changes based on the latest
available information. In addition, provisions for estimated losses, if
any, on uncompleted contracts are recorded in the period in which such
losses become probable based on the total estimated project costs.
SIGNIFICANT ACCOUNTING POLICIES
F O L L O W E D B Y T H E C O M PA N Y ( I N B R I E F )
• We identified the revenue recognition for fixed price contracts where
the percentage-of-completion method is used as a key audit matter
because of the significant judgement involved in estimating the efforts
to complete such contracts.

• This estimate has a high inherent uncertainty and requires

consideration of progress of the contract, efforts incurred to-date and
estimates of efforts required to complete the remaining performance
obligations.

• This required a high degree of auditor judgment in evaluating the audit

evidence supporting estimated efforts to complete and a higher extent
of audit effort to evaluate the reasonableness of the total estimated
efforts used to recognise revenue from fixed price contracts.
 B A L A N C E S H E E T R AT I O S ( C U R R E N T
R AT I O )
Working Debt-to-equity Solvency Ratio
Current Ratio Quick Ratio (Total net income/
Capital Ratio Total Liability)

Year 2021 Year 2021 Year 2021 Year - 2021 Year - 2021
2.5026748 2.4968068 272471 0.151785942 1.009993672

Year 2022 Year 2022 Year 2022 Year - 2022 Year - 2022
2.234093 2.2283364 285985 0.231940431 1.635794173
Company has the The company holds Wipro Ltd has a good Wipro Ltd has Rs. Company won’t
financial resources to enough in its amount of working 0.15 of Debt to Rs. 1 have any
remain solvent in the accounts to pay off capital that can be of equity in the year problem/troubles
short term & has liabilities within 90 quickly converted to 2021 and Rs. 0.23 of paying its long-term
better collections, days. cash to pay short- Debt to Rs. 1 debts.
faster inventory term debts.
turnover.
 P R O F I TA B I L I T Y R AT I O S
Gross Profit Operating Net profit Return on Return on
Margin Profit Margin Margin Assets Equity
Year - 2021 Year -2021 Year – 2021 Year – 2021 Year - 2021
98.74755824 19.86552153 17.54516249 16.58697248 19.79563214

Year - 2022 Year – 2022 Year – 2022 Year – 2022 Year - 2022
99.18261195 17.73675174 15.4796734 16.7581218 18.71993639
Wipro Ltd has a Company is earning Net Profit Margin There has been It signifies that the
Gross Profit Margin enough money from has decreased in optimum utilization company is doing
99.18% in the year operations to pay for 2022 which may lead of assets and the better than its peers
2022.This means all of the associated to decreased ROE. returns generated in generating higher
Wipro is doing great costs to maintain the from it. profit than
at managing their business. shareholder equities.
costs.
D U P O N T A N A LY S I S

Year DuPont Analysis

2021 19.669
2022 18.662

Here we can see from 2021 to 2022 ROE has decreased

from 19.669 to 18.662. From Dupont analysis we can
clearly see that there is a significant decrease in profit
margin which is not good. Although asset turnover ration
has increased equity multiplier has decreased slightly.

The overall decrease in ROE is owing to the significant

decrease in Profit Margins.
 A C T I V I T Y R AT I O S

Total Assets Turnover Fixed Assets Turnover Working Capital

Ratio Ratio Turnover Ratio

Year – 2021 Year – 2021 Year – 2021

0.945387225 3.101041807 2.273379552

Year – 2022 Year – 2022 Year – 2022

1.082588849
The company therefore is using its
assets very efficiently to generate
income and making good use of its
capital.
3 2.765648548
Fixed assets are able produce The company holds a good amount
enough revenue at the end of the of current assets to have smooth
year day-to-day working.
C O M M E N T S O N C A S H F L O W S TAT E M E N T
O F T H E C O M PA N Y F O R T H E Y E A R U N D E R
REVIEW • Comments on Cash Flow Statement of the company for the year
under review

• Wipro has been consistently spending an increasing amount towards

investments or capital expenditure, this can also mark the reason for
Wipro focusing on inorganic growth or business acquisition. For
examples Wipro adding on its subsidiaries or capturing other
businesses for their wider growth

• By looking at the overall numbers in the Cash Flow it can be seen

there is a very positive and strong cash flow generated from the Core
Operations and the money generated is being strongly invested for
future growth and future projects. As the Net cash generated from
Investing Activities shows a negative amount this means there has
been a huge investment under the Investing Activities.
COMMENTS ON CONTINGENT
LIABILITIES
 As at March 31, 2022 and March 31, 2021 the Company had
committed to spend approximately Rs. 10,502 (in millions) and Rs.
6,949, (in millions) respectively, under agreements to
purchase/construct property and equipment
 The contingent liability in respect of disputed demands for excise
duty, custom duty, sales tax and other matters amounting to Rs.
12,092 (Rs. in millions) and Rs. 11,413 (Rs. in millions) as of March 31,
2022 and March 31, 2021, respectively.
 Income tax claims against the Company amounting to Rs 92,388(Rs.
In millions) and Rs 80,032 (Rs. in millions) are not acknowledged as
debt as at March 31, 2022 and March 31, 2021, respectively. These
matters are pending before various Appellate Authorities and the
management expects its position will likely be upheld on ultimate
resolution and will not have a material adverse effect on the
Company’s financial position and results of operations.
C O M M E N T S O N E S G I N I T I AT I V E S A N D
C S R A C T I V I T I E S U N D E R TA K E N
 As early adopters of GRI (Global Reporting Initiative) and IR
(Integrated Reporting), our policies and processes cover most
elements of the NGRBC.
 Our policies like the Ecological Sustainability Policy, Health and Safety
Policy, Human Right Policy, Code of Business Conduct, Supplier Code
of Conduct, Data Privacy, and CSR policy are implemented by specific
operational guidelines and procedures under a cross-functional
charter which includes the Risk function, Legal and Compliance,
Human Resources, Information Security, Operations, Procurement
and Ombuds, among others.
C O M M E N T S O N C O M PA N Y ’ S C O R P O R AT E
GOVERNANCE AND INTERNAL FINANCIAL
CONTROLS • Board has two Executive Directors, six non-executive Independent
Directors and one non-executive non-independent Director.
• A company’s internal financial control over financial reporting is a
process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally
accepted accounting principles.
• The Board of Directors of the Company are responsible for
establishing and maintaining internal financial controls based on the
internal control over financial reporting criteria established by the
Company considering the essential components of internal control
stated in the Guidance Note on Audit of Internal Financial Controls
Over Financial Reporting issued by the Institute of Chartered
Accountants of India (“the ICAI”).
• As per the auditors, the Company has, in all material respects, an
adequate internal financial controls system over financial reporting
and such internal financial controls over financial reporting
‘ K E Y A U D I T M AT T E R S ’ C O V E R E D I N T H E
AUDITOR’S REPORT
• Revenue from fixed price contracts, including software development,
and integration contracts, where the performance obligations are
satisfied over time, is recognized using the percentage-of-completion
method.
• Use of the percentage-of-completion method requires the Company
to determine the project costs incurred to date as a percentage of
total estimated project costs at completion.
• The estimation of total project costs involves significant judgement
and is assessed throughout the period of the contract to reflect any
changes based on the latest available information.
• In addition, provisions for estimated losses, if any, on uncompleted
contracts are recorded in the period in which such losses become
probable based on the total estimated project costs.
• Auditors identified the revenue recognition for fixed price contracts
where the percentage-of-completion method is used as a key audit
matter because of the significant judgement involved in estimating
the efforts to complete such contracts.
ANY OTHER ISSUE(S) FLAGGED BY THE
AUDITORS
• There are no qualifications, reservations or adverse remarks made by
Deloitte Haskins & Sells LLP, Statutory Auditors, in their report for the
financial year ended March 31, 2022.

• Because of the inherent limitations of internal financial controls over

financial reporting, including the possibility of collusion or improper
management override of controls, material misstatements due to
error or fraud may occur and not be detected. Also, projections of
any evaluation of the internal financial controls over financial
reporting to future periods are subject to the risk that the internal
financial control over financial reporting may become inadequate
because of changes in conditions, or that the degree of compliance
with the policies or procedures may deteriorate.
BENEISH M SCORE & COMMENTS
Selling, General and Administrative 5 variable equation
SGA Expenses
CA Current Assets     M = -6.065+ .823 DSR + .906 GM + .593 AQ + .717 SG + .107 D
DSR Days Sales in Receivables  
GM Gross Margin    
 8 variable equation
AQ Asset Quality    
SG Sales Growth    
M = -4.84 + .920 DSR + .528 GM + .404 AQ + .892 SG + .115 D -.172 SGA + 4.679 TA - .327 L
D Depreciation    
SGA Sales, General and Administrative Expenses
L Leverage      
TA Total Accruals to Total Assets  
M-score  
5 variable model -3.13265
8 variable model -2.59005

If Beneish M-Score is less than -2.22, the company under consideration

is not a manipulator.
If Beneish M-Score is more than -2.22, it signals that the company can
be the manipulator
POST BALANCE SHEET EVENT(S)

On April 11, 2022, the Company acquired CAS Group.

Convergence Acceleration Solutions, LLC (“CAS Group”) is a US-based

consulting and program management company that specializes in driving
large-scale business and technology transformation for Fortune 100
communications service providers.

On May 20, 2022, the Company acquired Rizing.

On May 20, 2022, the Company acquired 100% equity interests in Rizing, a
global SAP consulting firm with industry expertise and consulting
capabilities in enterprise asset management, consumer industries, and
human experience management for a total cash consideration of ` 44,622.
PERFORMANCE
PERFORMANCE
THANK YOU

PRESENTATION TITLE
Group no. – 11
Abhinav kataria – 22020343004
Aman kumar – 22020343010
Gaurav Nandan – 22020343035
Sarthak bindroo – 22020343062
V.V Raghu Rama Sarma – 22020343073
Varun kumar sinha - 22020343076

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