Wipro accounts analysis

1. Presented by :-
Kumar kashish
Nikhil Vairal
Vaishali Patel
Apurva Kumar
Vaishnavi Gadwe
Jitender Kumar
Vivek Raj Bagrecha

2. Introduction
 WIPRO LTD (Western India palm refined oil limited or
Western India Product limited)
 It is an Indian information technology services
corporation
 Headquarter – Bangaluru ,Karnataka ,India
 Founder – Mohammed Azim Hashim Premji (Chairman)
 CEO – Abidali Neemuchwala
 Area Served – Worldwide
 Services – digital strategy, business consulting and IT
services
 Employees – 1,66,790
 Total assets – US $12.23 billion (2017)
 Revenue - US $8.48 billion (2017)
 Operating Income - US $1.70 billion (2017)

3. ◦ The Company was incorporated on 29 December 1945 in
amalner, a small town in Jalgaon District Mohamed Premji
as “Western India vegetable Products Limited” later
abbreviated to WIPRO.
◦ It was initially setup as Manufacturer of vegetable and
refined oil under the trade names of Kisan, Sunflower and
Cannel
◦ In 1966, after Mohammed Premji death , his son Azim
premji returned home from Stanford University and took
over Wipro as its Chairman at the age of 21
◦ During 1970s and 1980s the company shifted its focus to
new business opportunities in IT and Computing Industries
◦ On June 1977 the name of Company changed from
Western India Vegetable products limited to Wipro Product
Limited
◦ The year 1980 mark the arrival of Wipro in IT Domain
◦ Mean while, Wipro continued to expand in Consumer
Product domain with launch of “Ralak”, The Tulsi Based
family soap and “Wipro Jasmin”, a toilet soap.
Background

4. •In February 2002 Wipro became the first software technology
and services company in India to be certified for ISO
14001certification.
•Wipro Consumer care and lighting group entered the market of
compact fluorescent lamps (CFL) under the brand name of Wipro
smart light.
•In 2004, Wipro join the billion dollar plan.
•In 2006, Wipro acquire c-Mango inc. ,a US based technology
infrastructure consulting firm.
•In 2008, Wipro entered the clean energy business with wipro
echo energy.
•In April 2011, Wipro signed an agreement with Science
Application International Corporation (SAIC) for the acquisition of
their global oil and gas business services.
•In 2014 ,wipro signed ten year $ 1.2billion contract with ATCO, a
Canadian energy and utilities corporation. This was largest deal in
Wipor’s history.
•In October 2016 , Wipro announced it was buying Appirio ,an
Present scenario

5. Board Report
 Financial Performance
 Sales increased to Rs. 512478 million for the current year as against
Rs. 469510 million in previous year, Recording a growth of 9.15%
Profit increase to Rs. 89597 million for the current year as against
Rs. 86609 million in the previous year, recording a growth of 3.45%
 Dividend
◦ Directors recommend a final dividend of per equity share of face value of Rs. 2
each to be appropriated from the profit of the company for financial year 2015-
2016
 Buyback of Equity Shares
◦ On April 20, 2016 the board approved a proposal to buyback up to 40000000
equity shares of the company for an aggregate no exciding Rs. 25000000000,
being 1.62% of the total paid up equity share capital, at Rs 625 per equity
share
 Share Capital
◦ During the year 2015 – 2016, the company allocate 1670252 equity share of
Rs. 2 each pursuant to exercise of stock options.
 Business
 It is one of the leading provider of IT services globally. Company
combines the business knowledge and industry expertise of it
domain specialist and the technical knowledge and implementation
skills.
 Outlook
 According to strategic review 2016 of national association of software
and services(NASSCOM) in FY 2016, IT export revenues from India grew
by 12.3%.

6.  Governance and Ethics
◦ Corporate Governance
 Corporate governance principle are enshrined in the spirite of Wipro,
which form core values of Wipro.
◦ Board of Direct
 It consist of global leaders and visionaries who provide strategic direction
and guidance to the company.
 Internal Financial control and Audit
◦ Risk Management
 Company has put in place an enterprise risk management(ERM) frame
work and adopted and enterprise risk management policy based on
globally recognized standard.
◦ Auditor’s Report
 There are no qualifications, reservation or adverse remarks made by M/S
BSR and co. LLP statutory auditors, in their report for FY ended March 31
2016.
 Social Responsibility
 Companies at forefront of CSR and sustainability initiative
and practices.
 Other Disclosers
◦ Foreign Exchange earning and outgoing
 Earnings – Rs. 404862 million
 Outgoing – Rs. 208181 million
◦ Material changes and Commitments

7. Profit an loss statement
Balance sheet
Cash flow
Financial statement

8. Cash flow
Net Profit Before Tax
Net Cash (used in)/from
Investing Activities
Net Cash (used in)/from
Financing Activities
Net (decrease)/increase In
Cash and Cash Equivalents
Opening Cash & Cash
Equivalents
Closing Cash & Cash
Equivalents
Mar 17 Mar 16 Mar 15 Mar 14 Mar 13
12 mths 12 mths 12 mths 12 mths 12 mths
8161.70
10482.10 10557.00 9608.20 7205.1
-7890.80 -9805.00 -1495.00 239.60 -3573.10
-4367.60 -3446.70 -1836.10 -4088.60 -1005.50
-4980.90 -6533.70 4387.60 2690.30 1567.70
8343.10 14942.50 10554.90 7864.60 6232.70
3362.20 8408.80 14942.50 10554.90 7800.40

9. Economic Overview
A sustained revival is being witnessed in the Global Economy. Global trade and activity picked up in
the second half of 2013. IMF has forecast the world output growth to reach 3.6% in 2014, up from
3% recorded in 2013. Strengthening of developed economies is likely to boost demand, which, in
turn, will help emerging markets and developing economies strengthen further. Geopolitical
uncertainties in some parts, though, remain a cause of concern.
Leading the growth revival of developed economies, the US has witnessed sustained strengthening
in recording a GDP growth of 1.6% in 2013, which is projected to further rise to 2.8% in 2014. The
Euro Zone appears to be transiting from recession to recovery with a projected GDP growth of 1%
in 2014 as against a marginal de-growth of 0.4% recorded in 2013.
Business segment overview
Following the demerger of diversified business in 2012-13, the two resulting businesses of the
Company are IT Services and IT Products. Within the business of IT Services, we further enhanced
our segmental reporting structure with creation of 6 broad sub-segments with effect from April 1,
2013. . These are:
Banking, Financial Services and Insurance ("BFSI")
Healthcare and Life Sciences("HLS")
Retail, Consumer Goods, Transport and Government("RCTG")
Retail, Consumer Goods, Transport and Government("RCTG")
Energy, Natural Resources and Utilities ("ENU")
Manufacturing and High-Tech ("MFG")
Global Media and Telecom ("GMT")
MDAR

10. Audit Report
What is an Audit report?
 Accounting and auditing standards and matters are included in the audit
report under the provisions of the Act and the Rules made there
 To determine whether the standalone financial statements are free from
material misstatement.
 It involves performing procedures to obtain audit evidence.
 The procedures selected depend on the auditors' judgment, including the
assessment of the risks of material misstatement of the standalone
financial statements, whether due to fraud or error.
Audit Report
 They have good internal audit record.
 They have granted one loan to a subsidiary company.
 The material stock and papers have been verified.
 They haven’t paid taxes for the same year as there are some disputes that
are going on.
 They have not given any promotions to their employees.
 Have not accepted any depositions from public

11. Liquidity Ratio
It is essential for a firm to be able to meet its obligations as
they become due. Liquidity Ratios help in establishing a
relationship between cast and other current assets to
current obligations to provide a quick measure of liquidity.
A firm should ensure that it does not suffer from lack of
liquidity and also that it does not have excess liquidity. A
very high degree of liquidity is also bad, idle assets earn
nothing. The firm's funds will be unnecessarily tied up in
current assets. Therefore it is necessary to strike a
proper balance between high liquidity. Liquidity ratios
can be divided into three types:
Current Ratio
Quick Ratio
Cash Ratio

12. Current
Ratios
Year 2014-15 2015-16
Ratio 2.16 2.11
Interpretation:
• Current ratio is always 2:1, it means the current assets two times of the
current liability.
• After observing the figure the current ratio is fluctuating.
• In the year 2015 the current ratio is 2.95 and in 2016 the ratio is 3.06.
That means the current ratio is increasing at a increasing rate.
• Company is nowhere near the ideal ratio in every year but every company
cannot achieve this ratio.
• Current ratio is increased in compared to last year because of increase in
inventories and cash and bank balance.

13. Acid Test Ratio/ Quick Ratio
 It has been an important indicator of the firm’s liquidity
position and is used as a complementary ratio to the current
ratio. It establishes the relationship between quick assets
and current liabilities. It is calculated by dividing quick assets
by the current liabilities.
Acid Test Ratio = Quick Assets
Current liabilities

14. Quick Ratio
Year 2014-15 2015-16
Ratios 2.95 3.06
Interpretation:
• Standard ratio is 1:1
• Companies quick assets is more than quick liability for all last 5 year.
• In 2015 the ratio is 2.95 and in 2016 the ratio is 3.06, so the ratio is
increasing because of increase in bank and cash balance

15. Net Working Capital
 Networking capital = Current Assets – Current Liabilities
Net Working
Capital
Year 2015 2016
Trend 224902 284216
Interpretation:
• This ratio represents that part of the long term funds represented by the
net worth and long term debt, which are permanently blocked in the
current assets.
• It is increasing in compared to previous year.

16. Profitability Ratio
 The profitability ratio of the firm can be measured by calculating various
profitability ratios. General two groups of profitability ratios are calculated.
 A company should earn profits to survive and grow over a long period of
time. It would be wrong to assume that every action initiated by
management of company should be aimed at maximizing profits,
irrespective of social as well as economical consequences. It is a fact that
sufficient must be earned to sustain the operation of the business to be able
to obtain funds from investors for expansion and growth and to contribute
towards the responsibility for the welfare of the society in business
environment and globalization. The profitability ratios are calculated to
measure the operating efficiency of the company.
The following Profitability Ratios are calculated for the company.
 Gross Profit Ratio
 Operating Profit Ratio
 Net Profit Ratio
 Rate Of Return On Investment
 Rate Of Return On Equity

17. GROSS PROFIT MARGIN OR RATIO
 It measures the relationship between gross profit and sales. It is
calculated by dividing gross profit by sales. It is a useful indication of
the profitability of business. This ratio is usually expressed
as percentage. The ratio shows whether the mark-up obtained on
cost of production is sufficient however it must cover its operating
expenses.
 Gross profit margin or ratio = Gross profit X 100
Net sales
Gross Profit
Ratio
Year 2015 2016
Ratio 20.43 18.43
Interpretation:
• GP Ratio shows how much efficient company is in production
• In 2015 GP Ratio is 20.43 and in 2016 ratio is 18.43 that shows
ratio is decreasing due to higher production cost
• Gross sales and services are increasing year by year so in
effect gross profit is increasing up to 2015

18. Net Profit Margin or Ratio
 It measures the relationship between net profit and sales of a firm.
It indicates management’s efficiency in manufacturing,
administrating, and selling the products. It is calculated by dividing
net profit after tax by sales.
 Net profit margin or ratio = Earning after tax X 100
Net Sales
Net Profit Margin
Year 2015 2016
Ratio 22.32 20.38
Interpretation:
• After observing the figure, the ratio is fluctuating
• Though the company’s sale is continuously rising but the net
profit is not so much increased so management should take
some steps to decrease its expenses.
• The ratio is increasing.
• The overall ratio is showing good position of the company

19. Return on Investment
 Rate of Return on Investment indicates the profitability of business
and is very much in use among financial analysis.
ROI
Year 2015 2016
Ratios 19.76 17.71
Interpretation:
• In compared to 2015 the ratio is decreasing
• The ratio is decreasing because of assets increase compared to sales

20. Conclusion
According to this Research we find that The company's overall position is
at a good position. The company achieves sufficient profits in past four
years. Fixed assets are efficiently utilized by the company due to which
the profit of the company is increasing every year. The long term
solvency of the company is good. The company maintains low liquidity to
achieve high profitability .The company distributes dividend every year to
its shareholders. Inventory turnover ratio is increased as compared to
after that all year so management should take care about good efficiency
of stock management. Net Fixed Assets Turnover Ratio is increasing
year by year because of Sale is increasing continuously and Though the
company’s sale is continuously rising but the net profit is not so much
increased so management should take so me steps to decrease e its
expenses.