wipro finance report

‘Wipro Limited’

PREFACE

Dharmsinh desai institute of Business Administration was started in the year 1999 to meet the requirement of skill management personnel. These institutes provide both theoretical and practical knowledge.

Practical knowledge is very inevitable for the mangers of tomorrow. It open the corporate work and provide technical knowledge how to us.

As the student of this institute, I am required to prepare a project. It consists of WIPRO. I proudly present my practical knowledge through this report.

I am pleased to submit the findings of the project report for the purpose of evaluation by the examiners. I also express that this report was important for me because I got the practical study of the management.

Prepared By: Tejas Patel 1

‘Wipro Limited’

ACKNOWLEDGEMENT

I am glad to make report on the company ‘WIPRO’ at second year of Business Administration at Dharmsinh Desai University. This report helps me to learn financial aspects of the business.

I am sincerely thankful to our professors in charge of financial management especially to Prof. Rashmi madam for providing Important and effective guidance in proper by this report. Also my regards to G.S.Shah the Director of our institute who made possible and easy the financial management by practical approach.

I am also thankful to Faculty of Business Administration without there encouragement the report would have not possible.

TEJAS N. PATEL

S.Y. B.B.A

Roll No: - 51


‘Wipro Limited’

INDEX

No. Particular Page No.

1 General Information 4

2 Ratio Analysis 13

3 Ratio Calculation 17

4 Ratio Summary 41

5 Accounting Policy 43

6 Director’s Report 48

7 Auditor’s Report 52

8 Cash Flow Statement 55

9 Common Size Statement 58

10 Conclusion 63


‘Wipro Limited’


‘Wipro Limited’

NAME : WIPRO LIMITED

ADDRESS: Wipro Limited,

Doddakannelli,

Sarjapur Road,

Bangalore-56035,

India

BOARD OF DIRECTORS :

1) Dr.Ashok Ganguly

2) B. C. Prabhakar

3) Bill owens

4) Dr.Jagidsh N sheth

5) N. vaghul

6) P. M. Sinha

7) Suresh C. senapaty

8) Girish S. Paranjpe9) Suresh Vaswani


‘Wipro Limited’

AWARDS :

WINNER OF NDTV PROFIT BUSINESS LEADERSHIP AWARDS 2009 - SOFTWARE AND HARDWARE CATEGORY

WIPRO FIGURED IN THE JOINT SECOND POSITION IN THE LIST OF TOP 5 GREEN ELECTRONICS BRAND AS PER THE LATEST EDITION OF THE GREENPEACE GUIDE TO GREENER ELECTRONICS , BECAUSE OF OUR STRONG FOCUS ON E-WASTE MANAGEMENT AND CLIMATE CONTROL .

WIPRO’S WEBSITE WAS AWARDED THE WEBAWARD "FOR OUTSTANDING ACHIEVEMENT IN WEB DEVELOPMENT" BY WEB MARKETING ASSOCIATION .

WINNER OF 2009 ASIAN MAKE AWARDS- RECOGNIZED FOR TRANSFORMING ENTERPRISE KNOWLEDGE INTO SHAREHOLDER VALUE, KNOWLEDGE SHARING AND ENTERPRISE-WIDE COLLABORATION

WINNER IN THE 2009 ASTD (AMERICAN SOCIETY OF TRAINING AND DEVELOPMENT) BEST AWARD


‘Wipro Limited’

BEST NEW BPO LOCATOR AWARD FOR WIPRO BPO AT THE INTERNATIONAL INFORMATION AND COMMUNICATIONS TECHNOLOGY (ICT) AWARDS

AZIM PREMJI RECEIVES PRESTIGIOUS GLOBAL VISION AWARD FOR FURTHERING INDIA-US RELATIONS FROM US-INDIA BUSINESS COUNCIL - JUNE 2009

WINNER - INFOMATICA RETAIL VERTICAL INDUSTRY AWARD JOINTLY WITH A LEADING RETAIL CUSTOMER - JUNE 2009

WIPRO RECEIVED THE SALESFORCE .COM TOP PARTNER AWARD FOR FY09 FOR INDIA AND SAARC - JUNE 2009

MR.LAXMAN BADIGA, CHIEF INFORMATION OFFICER (CIO) FEATURES IN THE FIRST-EVER GLOBAL CIO 50 L IST INSTITUTED BY INFORMATIONWEEK - MAY 2009

BEST NEW BPO LOCATOR AWARD FOR WIPRO BPO AT THE INTERNATIONAL INFORMATION AND COMMUNICATIONS TECHNOLOGY (ICT) AWARDS- MARCH 2009

TOP NETWORK INTEGRATION COMPANY - VOICE AND DATA , 2008-2009


‘Wipro Limited’

TOP NETWORK MANAGEMENT SERVICES PROVIDER - VOICE AND DATA , 2008-2009


‘Wipro Limited’

WINNER OF THE ALL STARS AWARDS AT THE NETWORK WORLD ASIA - DEC 2008

AUTHORIZED EMC SIGNATURE PARTNER IN SOUTH ASIA

BEST TSG PARTNER OF HP IN SYSTEM INTEGRATOR CATEGORY

NETWORK INTEGRATOR OF THE YEAR 2008

WINNER OF THE INDIAN MAKE AWARD , 2008 RECOGNIZED FOR TRANSFORMING ENTERPRISE KNOWLEDGE INTO SHAREHOLDER VALUE, KNOWLEDGE SHARING AND ENTERPRISE-WIDE COLLABORATION - DEC 2008

WIPRO TECHNOLOGIES: WINNER OF INDIAN MAKE AWARD - DEC 2008

WINNER OF SAP® P INNACLE AWARD FOR THOUGHT-LEADERSHIP AROUND ENTERPRISE SOA - JUNE 2008

SAP PINNACLE AWARD 2008 “BEST SME CHANNEL PARTNER FOR THE ASIA PACIFIC REGION”

WIPRO WINS INTERNATIONAL INSTITUTE FOR SOFTWARE TESTING’S SOFTWARE TESTING BEST PRACTICE AWARD

ONLY TIER 1 NETWORK INTEGRATOR , 2007-2008 - COMMUNICATIONS TODAY


‘Wipro Limited’

BEST SYSTEM INTEGRATOR AWARD BY NETAPP 2007-08

BEST EMC TECHNOLOGY PARTNER FOR THE YEAR 2007-08

WIPRO LIMITED (SYSTEMS & TECHNOLOGY DIVISION) HAS BEEN RANKED BY GREENPEACE IN THEIR GUIDE TO GREENER ELECTRONICS AS THE NUMBER 1 GREEN IT BRAND IN INDIA AND TOP 4 IN THE WORLD AMONG THE GLOBAL GREEN BRANDS

TOP SALES ACHIEVEMENT PARTNER AND BEST POST SALES SUPPORT PARTNER , 2007 - C ISCO

WIPRO TOPS GLOBAL MAKE AWARD 2007

GOLDEN PEACOCK INNOVATION MANAGEMENT AWARD 2007 BY THE INSTITUTE OF DIRECTORS , UNDER THE CHAIRMANSHIP OF JUSTICE P N BHAGWATI , FORMER CHIEF JUSTICE OF INDIA AND CHAIRMAN - GOLDEN PEACOCK AWARDS

NATIONAL PARTNER OF THE YEAR2007AWARDFROM MICROSOFT: INDIA’S FIRST EVER MICROSOFT PLATINUM PARTNER AWARD

WIPRO AWARDED HP’S BEST APPLICATION SOLUTION IMPLEMENTATION FOR CREATING WORLD-CLASS BTO SERVICE PRACTICE (2006)

WIPRO AND NORTEL WIN OUTSOURCING EXCELLENCE AWARD (2006)


‘Wipro Limited’

WIPRO-ONLY INDIAN COMPANY IN THE BUSINESSWEEK’S IN25 “CHAMPIONS OF INNOVATION” LIST .

WIPRO BPO RECEIVES PRESTIGIOUS ‘OUTSOURCING EXCELLENCE’ AWARD

WINNER OF EVEREST GROUP’S ‘OUTSOURCING EXCELLENCE’ AWARD

NAMED INDIA TIMES ‘BPO COMPANY OF THE YEAR’

NASSCOM CONGRATULATES WIPRO TECHNOLOGIES AS SHOWCASE COMPANY FOR IT INNOVATION IN INDIA 2005

BEST AWARD FOR INNOVATIVE APPROACHES TO WORKPLACE LEARNING: ASTD, OCT 2005

GLOBAL MAKE 2005 AWARD: MOST ADMIRED KNOWLEDGE ENTERPRISE STUDY: TELEOS , OCT 2005

WIPRO’S GURGAON DEVELOPMENT CENTRE AWARDED PLATINUM RATING: US GREEN BUILDING COUNCIL, SEP 2005

NATIONAL AWARD FOR EXCELLENCE IN CORPORATE GOVERNANCE: COMPANY SECRETARIES OF INDIA, DEC 2004

AUDITOR:-

B S R & Co.Chartered Accountants


‘Wipro Limited’

BRIEF HISTOR :-

Wipro limited is an information technology service company. The company Provide a range of IT service, software solutions ,IT consulting , business process outsourcing service and research and development service in the areas of hardware and software organized in segments, which include Global IT service and product, India and Asia pacific IT service and product, consumer care and Lighting and others.

Wipro Technology is a global service Provide delivering technology –driven business solution that meet the strategic objective of our clients. Wipro has 55+ ‘Center of Excellence’ that create solution around specific needs of industries

BANKERS :Bank of BarodaBank of IndiaCorporation BankExim BankICICI Bank LimitedIndian BankIndustrial Development Bank of IndiaState Bank of IndiaThe Karnataka Bank LimitedUCO BankYes Bank LimitedAxis Bank HDFC BankHSBC BankAllahabad BankNational City BankBank of America [U.S.]


‘Wipro Limited’K & H BankStandard Chartered Bank

COMPANY SECRETARY :

V. RAMACHANDRAN

PRODUCT :

DESKTOPS

NOTEBOOKS

SERVERS

LOOKETS

SURPERCONPUTIOG


‘Wipro Limited’


‘Wipro Limited’

Ratio Analysis:-

Meaning:

The financial statement is prepared and presented annually are of little use for the guidance of prospective Investors, Creditors and even management. If relationships between various related items in this financial statement are established, they can provide useful clues to gauge accurately the financial health and ability of business to make the profit. This relation between two related items of financial statement is known as Ratio.

Ratio Analysis is a process of comparison of one figure against another and interpreting the strength and weakness of the firm’s operation using those ratios.

Importance of Ratio Analysis:-

1. Profitability:-

Useful Information about the trend of the profitability ratio. The gross profit ratio, net profit ratio and ratio of return on investment given a good idea of profitability of the business. On the basis of these ratio, investors get an idea about the overall efficiency of the business, the management gets an idea about the efficiency of there managers and bank as well as other creditors draw useful conclusion about the repaying capacity of the borrowers.

2.Liquidity:-

In fact, the use of ratio was made initially to ascertain the liquidity of the business. The Current ratio, Liquid ratio and Acid test ratio will tell whether the business will be able to meet its current liabilities as and when they mature. Bank


‘Wipro Limited’and other lenders will be able to conclude from this ratio whether the firm will be

able to pay regularly the interest and loan installments.

3.Efficiency:-

The turnover ratio are excellent guides to measure the efficiency of the manager. For example- The stock turnover will indicate how efficiently the sales is being made the debtors turnover will indicate the efficiency of collection department and assets turnover shows the efficiency with which the assets are used in business. All such ratio related to sales present a good picture of the success or

otherwise of the business.

4.Inter Firm Comparison:-

The absolute ratio of a firm are not of much use, unless they are compared with the similar ratio of the other firm belonging to the same industry. This is inter firm comparison, which shows the strength and weakness of the firm and will indicate corrective measures.

5. Indicate Trend:-

The ratio of the last three to five years will indicate the trend in the respective fields. For example- The current ratio of a firm is lower than the industry average but if the ratio of last five year shows of a company for one year may compare favorably with industry average but, if its trend show a deteriorating position, it is not desirable, only ratio analysis will provide this information.

6.Useful for Budgetary Control:-

Regular budgeting report are prepared in a business where the system of budgetary control is in use. If various ratio are presented in these report, it will give

a fairly good idea about various aspects of financial position.


‘Wipro Limited’

7.Useful for Decision Making:-

Ratios guide the management in making some of the important decision. Suppose the liquidity ratio show an unsatisfactory position, the management may decide to get additional liquid funds. Even for the capital expenditure decisions, the ratio of return on investment will guide the management. In efficiency of various department can be judged on the basis of their profitability ratios and efficiency of each department can thus be determined.


‘Wipro Limited’


‘Wipro Limited’

Ratio calculations:- Profitability Ratio:-

1. Gross Profit Ratio:-

Meaning:-

This ratio measures the gross earning of the company as compared to its net sales. If the ratio is less it shows the inefficiency of the company’s management.

Formula:-

Gross profit Ratio: Gross profit X 100

Sale

2009 = 148700×100

215073

= 69.12%

2008 = 117405×100

174926

= 67.12%

Interpretation:-

At the end of the year 2009 the gross profit ratio is 69.14% i.e. for the sales of 100 Rs, 69.14 Rs is recovered from the operation of business.

At the end of the year 2008 the gross profit ratio is 67.12% i.e. for the sales of 100 Rs, 67.12 Rs is recovered from the operation of the business.


‘Wipro Limited’

Conclusion:-

Thus we can conclude that there is increase in gross profit of current year than that of the previous year i.e. 2008 by 2.02%.

Graph:-


2009 20080%

10%20%30%40%50%60%70%80%90%

100%

Gross Profit Ratio

‘Wipro Limited’

2.NET PROFIT RATIO:-

Meaning:

The ratio measures the net earning of the company as compared to the net sales of the company. This ratio help to measure the overall profitability performance of the company.

Formula:-

NET PROFIT RATIO:- = Net profit X 100

Sale

2009 =29738

215073×100

= 13.83%

2008 = 30636

174926×100

= 17.51%

Interpretation:-

At the end of the year 2009, the net profit ratio was 13.83%. This ratio interprets that at the sales of 100 Rs the company recovers 13.83 Rs on the sales of 100 Rs.

At the end of the year 2008, the net profit ratio was 17.51%. That means at the sales of 100 Rs, the company recovers 17.51 Rs.


‘Wipro Limited’

Conclusion:-

Thus we can conclude that there is an increase in the profit of the company in the current year i.e. 2009 than that of previous year. The increase is of 3.68%.

Graph:-

2009 20080

2

4

6

8

10

12

14

16

18

Net Profit Ratio


‘Wipro Limited’

Composite Ratio:-

1.Return on Capital Employed:-

Meaning:-

It is an index of the profitability of business and it is obtained by comparing net profit with capital employed. The term capital employed includes share capital, reserves and long term loan such as debentures. In this ratio net profit is profit before deducting interest and taxes i.e. earning before interest and taxes (EBIT).

Formula:-

2009 = 35479

175288×100

=20.24%

2008= 34697154331

×100

= 22.48%

Interpretation:-

At the end of the year 2008, the return on capital employed is 22.48%. It means that for Rs 22.48 the capital employed is of Rs 100.

At the end of the year 2009, the return on capital employed is 20.24% that means that for Rs 20.24 the capital employed is of Rs 100.


‘Wipro Limited’

Conclusion:-

Thus we can conclude that there is Increase in capital employed ratio. It also shows that the company had used its capital employed efficiently.

Graph;-

2009 20080%

10%20%30%40%50%60%70%80%90%

100%

Return on Capital Employed


‘Wipro Limited’

2.Return on Shareholders Fund:-

Meaning:-

This ratio is used to judge the efficiency which the shareholder fund are employed in business. Shareholder fund includes share capital and reserves. It indicates whether the return on shareholder fund is in relation to the risks that they undertake. It measures the return that the shareholder get as compared to there investments.

Formula:-

Returnon Shareholders Fund= Profit After TaxSre holdered fund

x100

2009 = 29738

125149x100

=23.76%

2008 = 30633116107x100

=26.38%

Interpretation:-

At the end of the year 2009, the return on the shareholder fund is of 23.76%. It shows that when the shareholder invests 100 Rs in a company i.e. he get in return Rs 23.76for every 100 Rs investments.


‘Wipro Limited’

At the end of the year 2008, the return on shareholder fund is of 26.38%. It shows that when the shareholder invests 100 Rs in a company i.e. he get in return Rs 26.38 for every 100 Rs investments.

Conclusion:-

So we can conclude that there is a decrease in ratio of current year against previous year by 2.62%, so it indicates that the company had not properly utilized there shareholder fund.

Graph:-

2009 200822

22.5

23

23.5

24

24.5

25

25.5

26

26.5

Return on Shareholder Fund Ratio


‘Wipro Limited’

3. Return on Equity Shareholder Fund:-

Meaning:-

It shows that what percentage of profit is earned on the capital invested by ordinary shareholders. The ratio is obtained by dividing net profit after tax and after deducting preference dividend by the amount of ordinary share capital plus free reserve.

Formula:-

Return on Equity Shareholder Fund

¿ PAT−Preference Dividendequity Shareholder fund

x100

2009 = 27473

141993x100

= 19.04%

2008 = 29230

116624x100

= 25.06%

Interpretation:-

At the end of the year 2009, the return on the equity shareholder fund is of 19.04%. It shows that when the shareholder invests 100 Rs in a company i.e .he get in return Rs 19.04 for every 100 Rs investments.

At the end of the year 2008, the return on equity shareholder fund is of 25.06%. It shows that when the shareholder invests 100 Rs in a company i.e. he get in return Rs 25.06 for every 100 Rs investments.

So we can conclude that there is a decrease in ratio of current year against previous year by 6.02%, so it indicates that the company had not properly utilized there shareholder fund.


‘Wipro Limited’

Graph:-

2009 20080

5

10

15

20

25

30

Return on Equity Shareholder Fund Ratio

4.Earning Per Share (EPS):-

Meaning:-

The earning per share measures the earning available to the equity shareholder as compared to their investment done at per share.

Formula:-

Earning par Share=PAT−Preference DividendNo . of equity share

x100

2009 = 274732930 x100


‘Wipro Limited’ = 9.38%

2008 =292302923 x100

= 10%

Interpretation:-

This shows that in the year 2008, 10 decrease to 9.38 Rs per share in the year 2009. It is not good position to the company. The profit per share of the company is decreasing.

Conclusion:-

Thus we can conclude that the company’s i.e.Wipro’s earning per share is being decreasing. The companies earning per has been decreased by 0.62Rs.

Graph:-

2009

2008

99.19.29.39.49.59.69.79.89.910

Earning Per Share


‘Wipro Limited’

5.Dividend Per Share (DPS):-

Meaning:-

It means the dividend available to the shareholder as compare to their investment done per share.

Formula:-Dividend per share= Total Amount Declared

Number of Equity Share

2009 = 58602930

= 2

2008 =58462923

= 2

Interpretation:-

As the dividend is the return which dividend is the return which really earned by the share holder’s it must be that level which satisfies the share holder. The dividend in both year 2009-08 was same so the investor are not attract with policy of company.


‘Wipro Limited’

Graph:-

2009 20080

0.20.40.60.8

11.21.41.61.8

2

Dividend Per Share Ratio

6.Operating Ratio:-

Meaning:-

It is a ratio showing relationship between cost of good sold plus operating expense over net sales. It shows the efficiency of the business. The higher the ratio, the less will be the margin available to proprietor.


‘Wipro Limited’

Formula:-

Operating Ratio = Cost of good sold+operating expence

Net Sale x100

2009 ¿149594215073x100

= 69.55%

2008 ¿140229174926 x100

= 80.16%

Interpretation:-

At the end of the year 2009, the operating ratio is of 80.16%. It shows that against the sales of 100 Rs the operating expenses to the company is of 69.55 Rs.

At the end of the year 2008, the operating ratio is of 80.16% so it indicates that against the sales of 100 Rs the operating expense to the company is about 80.16 Rs.

Conclusion:-

So that we can conclude that there is a decrease in the operating ratio as compared that to the previous year.


‘Wipro Limited’

Graph:-

2009 200864

66

68

70

72

74

76

78

80

82

Operating Ratio


‘Wipro Limited’

Liquidity Ratio:-

1. Current Ratio:-

Meaning:-

This ratio shows the proportion of current assets to the current liability. It is also known as working capital ratio, which the capacity of the company to pay off the liability which are due within twelve months period as compared to its current assets. It shows whether the business will be able to meet its current liability as an when they mature.

Formula:-

Current Ratio¿ Current AssetsCurrent Liability

2009 = 13518374231

= 1.82:1

2008 ¿12006447423

= 2.53:1

Interpretation:-

At the end of the year 2008, current ratio was 2.53:1. It shows that against the liability of 1 Rs the company assets is of 2.53 to pay off the liability.

At the end of the year 2009, the current ratio was 1.82:1. It shows that against the liability of 1 Rs the company has assets of worth 1.82 to pay of the liability.


‘Wipro Limited’

Graph:-

2009 20080

0.5

1

1.5

2

2.5

3

Current Ratio

2.Liquid Ratio:-

Meaning:-

It means the liquid position of the company to pay off its debt within very short period as compared to its liquid liabilities. It gives the better idea of liquid position of the company.

Formula:-Liquid Ratio= Liquid Assets

Liqui d Liability

2009 = 13113874231

= 1.77


‘Wipro Limited’

2008 = 11788947423

= 2.48

Interpretation:-

In the year 2008, the liquid ratio was 2.48:1. It shows that against the liability if 1Rs there is 2.48 Rs assets to pay off the liability.

In the year 2009, the liquid ratio was 1.77:1. It shows that against the liability of 1 Rs there are 1.77 Rs assets to pay off the liability.

Conclusion:-

Thus we can conclude that there is a decrease in liquid ratio as compared to that of the previous year.

Graph:-

2009 20080

0.5

1

1.5

2

2.5

Liquid Ratio


‘Wipro Limited’

3.Proprietary Ratio:-

Meaning:-

The ratio shows the proportion of proprietor fund to the total assets employed in the business. The proprietor’s funds are shareholder equity capital and reserve and surplus.

Formula:-

Proprietary Ratio ¿Proprietors fund

Total Assets x100

2009 = 125149172288x100

= 72.64%

2008 = 116107154331x100

= 75.23%

Interpretation:-

At the end of the year 2008, the proprietary ratio was 75.23%. It shows that investment in total assets of 100 Rs the investment made by the owner is of 75.23 Rs.

At the end of the year 2009, the proprietary ratio was 72.64. It shows that investment in total assets of 1 Rs the investment made by the owner is of72.64 Rs.

So we can conclude that there is a decrease in ratio as compared to that of the previous year by 2.59 Rs.


‘Wipro Limited’

Graph:-

2009 200871

71.5

72

72.5

73

73.5

74

74.5

75

75.5

Proprietary Ratio

4.Acid Test Ratio:-

Mening:-

The measure of absolute liquidity may be obtained by comparing only cash &bank balance as well as readily marketable securities with liquid liability

Formate:-

Acid Test Ratio = Quick asset

Quick liability

2009 = 4409274231


‘Wipro Limited’ = 0.59:1

2008 = 3732147423

= 0.79:1

Interpretation:-

It shows company on the way of having good absolute liquidity. Company has 0.60 paisa against 100 paisa of liability. It means in other from company has a 60 Rs of cash % bank balance against it’s 100 Rs of liability.

Graph:-

2009 20080

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

Acid tast Ratio


‘Wipro Limited’

Activity Ratio:-

1.Debtors Turnover Ratio:-

Meaning:-

This ratio shows the number of days taken to collect the dues of credit sales. It measures the number of time the rotation of debtor’s cycle is done during a year. It shows the efficiency or otherwise of the collection policy of the enterprise.

Formula:-

Debtors Turnover Ratio ¿Debtors+Bills Recivable

Credit Sales X No. of Days

2009 = 42992

215073x 365

= 72.96 day

2008 = 36466

174926x 365

= 76.09 day

Interpretation:-

In the year 2008, the debtor’s ratio is of 76.09 days. It shows that within 76.09 days the company is able to collect the dues of its credit sales.

In the year 2009, the debtor’s ratio is of 72.96 days. It shows that within 72.96 days the company is able to collect the dues of its credit sales.


‘Wipro Limited’

Conclusion:-

Thus finally we can conclude that the debtor’s turnover ratio had decreased to that of previous year.

Graph:-

2009 200871

72

73

74

75

76

77

Debtors Turnover Ratio


‘Wipro Limited’


‘Wipro Limited’No. Particular 2009 2008

1 Gross profit Ratio 69.12% 67.12%

2 Net profit Ratio 13.83% 17.51%

3 Return on capital employed 20.24% 22.48%

4 Return on shareholder fund 23.76% 26.38%

5 Return on equity shareholder fund 19.04% 25.06%

6 Earning per share 9.38% 10%

7 Dividend per share 2% 2%

8 Operating Ratio 69.55% 80.16%

9 Current Ratio 1.82:1 2.53:1

10 Liquid Ratio 1.77% 2.48%

11 Proprietary Ratio 72.64% 75.23%

12 Acid Test Ratio 0.59% 0.79%

13 Debtor turnover Ratio 72.96 76..09


‘Wipro Limited’


‘Wipro Limited’

Significant of Accounting Policy.

Basic of Preparation of Financial Statement :

The Financial Statement are Prepared in accounting with India generally accepted Accounting Principal under the historical cost convention on the accrual basic except for certain financial instruments. Which are measured on a fair value basic. GAAP comprise Accounting standers of India and other generally accepted accounting principal in India.

Value of Estimates;

The Preparation of financial standers require management to make estimate and assumption that asset the reported amount of asset and liabilities the disclosure of contingent asset and liabilities on the date of the financial statement and reported amounts of revenue and expenses during the period reported.

Goodwill:

Goodwill arising on consolidation acquisition of asset is not mortised of asset is not mortised. It is tested for impartment on periodic basic and written – off it fund impaired.

Use of Estimate;

The Preparation of financial statement requires management to make estimate and assumption that asset the reported amount of asset and liabilities the disclosure of contingent assets and liabilities on the date of the financial statement and reported amounts of revenue and expense during the period.


‘Wipro Limited’

Fixed asset, intangibal asset and work-in-process;

Fixed assets are stated of historical cost less accumulated depreciation.

Intangible assets are stated at the consideration paid for acquisition less accumulated amortization advance paid toward the acquisition of fixed assets outstanding as of each balance sheet date and the cost of fixed assets not ready for use before such date are disclosed under capital work-in-process.

Investment:

Long term investment are stated at cost less provision for diminution in value of such investment. Diminution on value is provided for where the management is of the opinion that the diminution is of other than temporary nature.

Inventories:

Finished good are valued at cost or net realizable value whichever is lower other inventories primaries comprising material and other supplies held for use in the course of production are valued at cost less provision for obsolescence

Warranty:

The company accurse the estimated cost of warranties at the time when the revenue is recognized.


‘Wipro Limited’

Foreign currency transaction:The company is exposed to currency fluctuation on foreign

currency transaction accounted in the book of account at the

average rate for the month.

Transaction;

The difference between the rate of which foreign currency transaction are account and the rate at which they are realized is recognized in the profit and loss account.

Integeral operation

In respect of integral operation monetary asset and liabilities are translated of the exchange rate prevailing at the date of the balance sheet.

Provision for retirement benefits provident fund:

Employee receive benefit from provided fund, the employee and employee each make monthly contribution to the plan equal to 12% of the covered employee’s salary.

Compensated absence:

The employee of the company are entitled to compensated absence the employees can carry forward a position of the unutilized accrued compensated absence.


‘Wipro Limited’

Gratuity:

In accordance with applicable India laws, the company provides for gratuity, a defined benefit requirement plan covering ,certain categories of employees. The company has an employee gratuity fund managed by the life insurance corporation of India

Earning per share:

The number of share used in computing diluted earning per share comprises the weighted average share consider for deriving basic earning per share and also the weighted average number of

equity share hold by controlled trust.

Diluted:

The number of share used in computing earnings per share comprises the weighted average share considered for deriving basic earnings per share and also the weighted average number of equity share.


‘Wipro Limited’


‘Wipro Limited’

DIRECTORS’ REPORT:-

FINANCIAL PERFORMANCE:

KEY ASPECTS OF YOUR COMPANY’S CONSOLIDATED FI NANCIAL PERFORMANCE FOR WIPRO AND ITS GROUP COMPANIES AND STANDALONE FI NANCIAL RESULTS FOR WIPRO LIMITED FOR THE YEAR 2008-09 ARE TABULATED BELOW: (RS. IN MILLION)

GLOBAL ECONOMY

THE ONGOING ECONOMIC CRISIS HAS SIGNIFI CANTLY IMPACTED GLOBAL ECONOMIC GROWTH . ACCORDING TO WORLD ECONOMIC OUTLOOK UPDATE PUBLISHED BY THE INTERNATIONAL MONETARY FUND IN JANUARY 2009, THE GDP OF UNITED STATES IS PROJECTED TO CONTRACT BY 1.6% IN FI SCAL 2009 AND DURING THE SAME PERIOD THE

GDP OF EURO AREA IS PROJECTED TO CONTRACT BY 2%. A SIGNIFI CANT PORTION OF OUR EXPORTS ARE TO THESE ECONOMIES .DIVIDEND

YOUR DIRECTORS RECOMMEND A FI NAL DIVIDEND OF 200% (RS.4 PER EQUITY SHARE OF RS. 2/- EACH) TO BE APPROPRIATED FROM THE PROFI TS OF THE YEAR 2008-09 SUBJECT TO THE APPROVAL OF THE SHAREHOLDERS AT THE ENSUING ANNUAL GENERAL MEETING. THE DIVIDEND WILL BE PAID IN COMPLIANCE WITH APPLICABLE REGULATIONS. DURING THE YEAR 2008-09, UNCLAIMED DIVIDEND OF RS.88,824/- WAS TRANSFERRED TO THE INVESTOR EDUCTION AND PROTECTION FUND, AS


‘Wipro Limited’REQUIRED BY THE INVESTOR EDUCATION AND PROTECTION FUND (AWARENESS AND PROTECTION OF INVESTOR) RULES, 2001.

Investments in direct subsidiaries

DURING THE YEAR UNDER REVIEW , YOUR COMPANY HAD INVESTED AN AGGREGATE OF US $ 432 MILLION AS EQUITY , IN ITS DIRECT SUBSIDIARIES WIPRO CYPRUS PRIVATE LIMITED , WIPRO HOLDINGS (MAURITIUS) LIMITED , WIPRO INC AND WIPRO TECHNOLOGY SERVICES LIMITED .

RESEARCH & DEVELOPMENT

REQUIREMENT UNDER RULE 2 OF COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES, 1988 REGARDING TECHNICAL ABSORPTION AND RESEARCH & DEVELOPMENT IN FORM B IS GIVEN IN PAGE 4 TO THE EXTENT APPLICABLE .

CONSERVATION OF ENERGY

THE COMPANY HAS TAKEN SEVERAL STEPS TO CONSERVE ENERGY THROUGH ITS "ECO EYE" INITIATIVES DISCLOSED SEPARATELY AS PART

OF THIS ANNUAL REPORT. THE INFORMATION ON CONSERVATION OF ENERGY REQUIRED UNDER SECTION 217(1)(E) OF THE COMPANIES ACT, 1956 READ WITH RULE 2 OF THE COMPANIES (DISCLOSURE OF PARTICULARS IN THE REPORT OF BOARD OF DIRECTORS) RULES, 1988 IS PROVIDED IN PAGE 4 OF THIS ANNUAL REPORT .

Directors’ Responsibility Statement

ON BEHALF OF THE DIRECTORS I CONFI RM THAT AS REQUIRED UNDER SECTION 217 (2AA) OF THE COMPANIES ACT, 1956. A) IN THE PREPARATION OF THE ANNUAL ACCOUNTS, THE APPLICABLE ACCOUNTING STANDARDS HAVE BEEN FOLLOWED AND THAT NO


‘Wipro Limited’MATERIAL DEPARTURES ARE MADE FROM THE SAME; B) WE HAVE SELECTED SUCH ACCOUNTING POLICIES AND APPLIED THEM CONSISTENTLY AND MADE JUDGEMENTS AND ESTIMATES THAT ARE REASONABLE AND PRUDENT SO AS TO GIVE TRUE AND FAIR VIEW OF THE STATE OF AFFAIRS OF THE COMPANY AT THE END OF THE FI NANCIAL YEAR AND OF THE PROFI TS OF THE COMPANY FOR THE PERIOD; C) WE HAVE TAKEN PROPER AND SUFFICIENT CARE FOR THE

MAINTENANCE OF ADEQUATE ACCOUNTING RECORDS IN ACCORDANCE WITH THE PROVISIONS OF THE COMPANIES ACT, 1956 FOR SAFEGUARDING THE ASSETS OF THE COMPANY AND FOR PREVENTING AND DETECTING FRAUD AND OTHER IRREGULARITIES; AND D) WE HAVE PREPARED THE ANNUAL ACCOUNTS ON A GOING CONCERN BASIS.

ACKNOWLEDGEMENTS AND APPRECIATION

YOUR DIRECTORS TAKE THIS OPPORTUNITY TO THANK THE CUSTOMERS , SHAREHOLDERS , SUPPLIERS , BANKERS , BUSINESS PARTNERS/ASSOCIATES , FI NANCIAL INSTITUTIONS AND CENTRAL AND STATE GOVERNMENTS FOR THEIR CONSISTENT SUPPORT AND ENCOURAGEMENT TO THE COMPANY . I AM SURE YOU WILL JOIN OUR DIRECTORS IN CONVEYING OUR SINCERE APPRECIATION TO ALL EMPLOYEES OF THE COMPANY FOR THEIR HARD WORK AND COMMITMENT . THEIR DEDICATION AND COMPETENCE HAS ENSURED THAT THE COMPANY CONTINUES BE A SIGNIFI CANT AND LEADING PLAYER IN THE IT SERVICES INDUSTRY . FOR AND ON BEHALF OF THE BOARD OF DIRECTORS

AZIM H. PREMJI ,CHAIRMAN

BANGALORE , JUNE 19, 2009


‘Wipro Limited’


‘Wipro Limited’

They have audited the attached consolidated balance sheet of Wipro Limited (‘the Company’) and subsidiaries (collectively called ‘the Wipro Group’) as at March 31, 2009, the consolidated profi t and loss account and the consolidated cash fl ow statement for the year ended on that date, annexed thereto. These fi nancial statements are the responsibility of the Company’s management. Their responsibility is to express an opinion on these fi nancial statements based on their audit.

They conducted their audit in accordance with auditing standards generally accepted in India. Those standards require that they plan and perform the audit to obtain reasonable assurance about whether these consolidated fi nancial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fi nancial statements. An audit also includes assessing the accounting principles used and signifi cant estimates made by management, as they’ll as evaluating the overall fi nancial statement presentation. They believe that their audit provides a reasonable basis for their opinion.

They report that the consolidated fi nancial statements have been prepared by the Company’s management in accordance with the requirements of Accounting Standard (AS) 21, Consolidated Financial Statements and Accounting Standard (AS) 23, Accounting for Investments in Associates in Consolidated Financial Statements issued by the Institute of Chartered Accountants of India (‘ICAI’).

Without qualifying their opinion, they draw attention to Note 4 of the Notes to Accounts that describes the early adoption by the Company of Accounting Standard (AS) 30, Financial Instruments: Recognition and Measurements, along with limited revisions to other accounting standards, issued by the Institute of Chartered Accountants of India. AS 30, along with limited revisions to the other accounting standards, have not currently been notifi ed by the National Advisory Council for Accounting Standards (NACAS) pursuant to the Companies


‘Wipro Limited’(Accounting Standards) Rules, 2006 as per Section 211(3C) of the Companies Act, 1956. Had the Company not early adopted AS 30 and the related limited revisions,

profi t after taxation for the year ended March 31, 2009 would have been lotheyr by Rs 3,044 million.

In their opinion and to the best of their information and according to the explanations given to us, the said accounts give a true and fair view in conformity with the accounting principles generally accepted in India:

(a) in the case of the consolidated balance sheet, of the state of affairs of the Wipro Group as at March 31, 2009;

(b) in the case of the consolidated profi t and loss account, of the profi t of the Wipro Group for the year ended on that date; and

(c) in the case of the consolidated cash fl ow statement, of the cash fl ows of the Wipro Group for the year ended on that date. for

B S R & Co.

Chartered Accountants

Akeel Master

Partner

Membership No.: 046768

Bangalore

April 22, 2009


‘Wipro Limited’


‘Wipro Limited’

CASH FLOW STATEMENT:

Meaning:-

The cash flow statement is a historical statement and shows what is the cash flow and outflow during the last year and what the actual cash balance was on hand at the end of the last year.

Importance.:-

Efficient Cash Management

The finance manager has clear idea of cash recipient and cash payment’s of cash resources be efficiently managed. Excess cash found at any time may be profitable investment for the time benefit and the profitability is increased.

Useful for internal finance management.

The management can plan payment of dividend, repayment of loans, purchase of machines or equipment etc. It has good idea about time when enough cash will be on hand. This will avoid the possibility of borrowing funds at high rate of interest.


‘Wipro Limited’

Information About Cash Receipt and Payment

Such statement will give information about the trend of cash receipt and payment such information is useful to management in meeting any figure contingency and also in sizing profitability.

Useful For Control

The historical cash flow statement prepared for last year is useful for comparing the figure of cash budget and point of difference may be located.

Easy in Obtaining Funds.

By comparing figure of cash flow statement and cash budget, the cash planning control becomes more efficient liabilities are easily paid as and when they mature in twin these facilities rising of addition funds easily when needed


‘Wipro Limited’


‘Wipro Limited’

Common size statement of Wipro Limited profit & loss account for the year ended 31st March 2008-09.

Particular As at 31st March 2009

% As at 31st March 2008

%

I Income

Sales 216128 176581

Excise duty 1055 1655

Net sales / services 215073 100% 174926 100%

Dividend 2265 1.07% 1403 0.78%

Interest 1879 0.89% 1411 o.79%

Other income 8948 4.25% 455 o.26%

Total 210269 178195

II Expenditure

Cost of good consumed

(i)opening stock 4045 2.31% 2175 1.51%

(ii)purchase 33628 19.23% 31393 21.87%

Less closing stock 3906 2.23% 4045 2.81%

manufacturing Expense 2606 1.49% 2998 2.08%

Selling expenses 5522 3.15% 5311 3.70%

Salaries, wages& other employee benefit 92422 52.87% 74079 51.62%

Managerial remuneration 76 0.04% 12 0.008%

Interest 1968 1.12% 1168 0.81%

Depreciation 5337 3.05% 4560 3.17%

Auditor’s remuneration 13 0.007% 11 0.007%

provision& doubtful debts 791 246 0.17%


‘Wipro Limited’ Total 174790 143498

III profit before tax (I-II) 35479 20.29% 34697 24.17%

IV provision for taxation 5741 32.84% 4064 2.83%

V profit after tax 29738 17.01% 30633 21.34%

VII transfer to reserve & surplus


‘Wipro Limited’Common size statement of ‘Wipro limited’ balance sheet for at March 31st

Particular As at 31st March 2009 % As at 31st March 2008 %

Liability

I Source of fund

(a)capital

Equity 2930 1.67% 2923 1.89%

(b)share application

money pending 15 0.008% 40 0.02%

(c)share issuable - 540 0.34%

(d)reserve & surplus

(i)capital reserve 1144 0.65% 1144 0.74

(ii)securities

premium account 27279 15.56% 25373 16.44%

(iii)restricted stock

unit reserve 2313 1.31 1817 1.17%

(iv)revenue reserve 108327 61.79% 85367 55.31%

(v)unrealized losses

on cash flow 16859 9.61% 1097 0.71%

2)Loan fund

(a)secured loans (other than debenture)

-

(b)unrealized loan 50139 28.60% 40 0.02%

Total 175288 154331 24.74%

Assets

II Application of fund

(1)goodwill 447 0.25% 427 0.27%


‘Wipro Limited’(2)Fixed assets

a)Net block 31349 17.88 22395 14.51

b)capital work-in-progress

13118 7.48 13350 8.65

(3)Investment

a)investment in subsidies companies unquoted

52418 29.90 30442 19.72

b)others

(i)quoted 15132 8.63 14211 9.20

(ii)unquoted 1295 0.73 348 0.22

(4)deferred tax assets

577 0.32 517 0.33

(5)current assets, loans

a)inventories 4597 2.62 4481 2.90

b)sundry debtors 42992 24.52 36466 23.62

c)loans& advance

(i)To subsidiary company

3163 1.80 16196 10.49

(ii)To other 40339 23.01 25600 16.58

d)cash & bank 44092 25.15 37321 24.18

Less:

III current liabilities & provisions

(A)current liabilities 57164 32.61 33616 21.78

(B)provision 17067 9.73 13807 8.94

Net current assets 60952 34.77 72641 47.06

Total 175288 100 154331 100


‘Wipro Limited’


‘Wipro Limited’

The units of Wipro ltd company is training it best to deliver social services as well as earn respodable profit but with goal of earning profit they also care of total sincerity of employee they give them full freedom to make free give them full freedom to superior and provide them all basic ficilities.

They fulfill all government order means they pay the tax regularly and take care of their shareholder as well as society. They are also fulfill their society. They are also helpful their social responsibilities and helpful in the nature calamities. Being a very sincerity company they are up to achieve their goals.

Under company profitability ratio provide two years sublicient in other profitability ratio is normally so company should try to control all the expenses that is financial exp., etc. and main step is the earning profit is more in the business.

Under company debtor & creditor ratio convin within the solenly or the company in the company debtor ratio are shows the satisfactory position or the company under the creditor ratio , period is very long so company should try to reduce the period between the company and creditor ratio shows an unsatisfactory position company should try to reduce the number or days. It takes in making payment is it credit purchase also it would have an adverse effect on its reputation.

Company current , liquid and quick ratio are satisfied position but last year the so, company try t5o do carry out it.


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