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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
Mar'11 Mar'10 Mar'09
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
Mar'11 Mar'10 Mar'09
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
Mar'11 Mar'10 Mar'09
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
Mar'11 Mar'10 Mar'09
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
Mar'11 Mar'10 Mar'09
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
Mar'11 Mar'10 Mar'09
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
Mar'11 Mar'10 Mar'09
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
Mar'11 Mar'10 Mar'09
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
Mar'11 Mar'10 Mar'09
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
Mar'11 Mar'10 Mar'09
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
Mar'11 Mar'10 Mar'09
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.
Mar'11 Mar'10 Mar'09
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
Mar'11 Mar'10 Mar'09
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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