The document analyzes the working capital of Wipro Limited over three fiscal years. It defines working capital and its components. It finds that Wipro's working capital and current ratio increased each year, indicating strong liquidity. While the working capital turnover ratio decreased slightly each year, it remained positive, showing efficient use of capital. In conclusion, Wipro managed its working capital well over this period to support profitability and meet obligations.

1. Working Capital
of WIPRO

2. OBJECTIVES
 To study the concept of working capital
 To analyze profitability, liquidity & working capital
position of the company.
 To find out the working capital of the company
 To analyze the current ratio of the company
 To analyze the working capital turnover ratio of the
company .

3. INTRODUCTION
WCM is highly important in firms as it is used to
generate further returns for the stakeholders.
 Investments in current assets represent a substantial
portion of total investment.
 Investment in current assets & the level of current
liabilities have to be geared quickly to change sales.
 The working capital is the life blood & nerve center of
a business firm. The importance of working capital in
any industry needs no special emphasis
 It is crucial to retain right level of working capital.

4. DESCRIPTION
 Financial management looks after two types of capital
need: for fixed capital to invest in things such as
buildings, plants &equipments and working capital
principally to pay for stock and to cover the amount of
credit extended to customers.
 Fixed capital, as the name implies, tends not vary in
the short but to move up or down in jumps when
major investment decisions are made (or assets sold).
 Working capital is the firm’s investment in short term
assets cash, short term securities. Account receivables
and inventories.

5. DEFINITIONS OF WORKING
CAPITAL
 Working capital is the difference between the inflow
and outflow of funds. In other words it is the net cash
inflow.
 Working capital represents the total of all current
assets. In other words it is the Gross working capital, it
is also known as Circulating capital or Current capital
for current assets are rotating in their nature.

6. Components of current assets:
 For the day to day business operation different types of
current assets are required. Current assets refer those assets
that are cash or can be converted into cash within a year.
 The composition of current assets or the main components
of current assets at Wipro Limited are cash and bank
balance, loan and advances and government securities.
 Miscellaneous current assets are also a component of
current assets. Prepaid expenses, outstanding income like
interest receivable and other current assets are also
included in miscellaneous current assets

7. CURRENT ASSETS OF THE
COMPANY FOR DIFFERENT YEARS
FISCAL YEAR CURRENT ASSETS
2013 4,39,730
2014 5,02,304
2015 6,00,033
FIG. IN CRORE

8. Component of Current Liabilities:
 The composition of current liabilities or the main
components of current liabilities. Tax provision, staff
bonus, proposed dividend payable and other liabilities
are included in other current liabilities.
 The following table shows the amount of deposit and
other accounts, short term loan, bills payable and
other current liabilities of Wipro limited.

9. CURRENT LIABILITIES OF THE
COMPANY FOR DIFFERENT YEARS
FISCAL YEAR CURRENT LIABILITIES
2013 1,54,747
2014 1,57,418
2015 1,90,405
FIG. IN
CRORE

10. Working capital of Wipro limited:
 Working capital is required to run business smoothly and
efficiently in the context of set objectives.
 It is no doubt that no organization can achieve its goal
without proper use of working capital. It means money
invested on working capital should be neither more nor
less because both the position of working capital affects
not only liquidity but also profitability of the organization.
 The investment decision should be made on any type of
current assets by considering their role in company and
determining which one is more beneficial to the company
and which is not

11. WORKING CAPITAL OF A COMPANY
FISCAL YEAR CA CL WC=CA-CL
2013 4,39,730 1,54,747 2,84,983
2014 5,02,304 1,57,418 3,44,886
2015 6,00,033 1,90,405 4,09,628

12. Current Ratio:
 This ratio indicates the short-term solvency position of
bank. In other words current ratio indicates better
liquidity position. It is calculated as follows:
Current assets (CA)
Current liabilities (CL)
 The following table shows the current ratio to compare
the following capital management of
Wipro limited.

13. CURRENT RATIO
Fiscal
Year
Total CA Total CL Current
ratio
2013 4,39,730 1,54,747 2.84
2014 5,02,304 1,57,418 3.24
2015 6,00,033 1,90,405 3.15
Average =
3.077

14. Working Capital Turnover Ratio:-
 It is taken as one of the primary indicators of the
short-term solvency of the business. It establishes the
relationship with the net sales. It measures the
efficiency with which the working capital is being used
by the firm.
 WORKING CAPITAL TURNOVER RATIO =
Net Sales
Net Working Capital

15. WORKING CAPITAL TURNOVER
RATIO
Year Net Sales Net
Working
Capital
Ratio
2013 3,74,256 2,84,983 1.31
2014 4,34,269 3,44,886 1.25
2015 4,69,545 4,09,628 1.14

16. ANALYSIS
 Working capital condition of the company is very good, it is
clearly seen it is increasing every year . In all the year of the
study period the working capital of the company is
positive.
 . The current ratio of the Wipro limited is between 2-3.5
over the years. It is generally considered for a healthy
company to have a current ratio 2:1. The highest current
ratio is in fiscal year 2014 is 3.24. The average ratio is 3.077
 In The year 2013 working capital t/o ratio was 1.31 time , 1.25
time in the year 2014. In the year 2015 the working capital
was 1.14. it is slightly reducing every year . for a company it
is required to have a positive and increasing working
capital turnover ratio , the more the cash company has the
more it has capability to turn that cash into revenues.

17. OBSERVATIONS
 Current assets for the year 2013-14 increases and it is good
condition for the company and current liabilities of the
company is also increased that’s shows the working capital
of the company is increased.
 Current ratio (C.R) of fiscal year 2013-2014 showed slightly
increase i.e. 2.84 to 3.24 But in fiscal year 2015 C.R
decreased at 3.15 comparatively in factors which influence
it.
 Cash and Bank balance to current assets ratio of the
company is in 2009/10 decreased and in 2010/11 it increased
and again in 2011/12 is decreased..

18.  The Working capital of the Wipro ltd is increasing in all the three years
from 2,84,983 in first year, 3,44,886 in 2nd year and 4,09,628 in the 3rd year.
Which means working capital is increasing gradually and the company is
financially strong.
 . Company should work in the same manner so as to earn more profit and
revenue.
 The company has able to repay the liability of the creditors because the
profit of the company has increased every year.
 Company has able to full fill the standard level of current ratio i.e. 2:1
.There for the company has able to repay the liability and loan of company