SYMBIOSIS INSTITUTE OF MANAGEMENT STUDIES FINANCIAL STATEMENT ANALYSIS OF WIPRO LTD .

Submitted to : Mrs . Ashwini Purandare

Submitted by : Section E

INTRODUCTION
Wipro Infotech is a leading strategic IT partner for companies across India and Middle East - offering integrated IT solutions It is a part of USD 5 billion Wipro Limited with a market capitalization of USD 24 billion Currently there are 13 regional offices in India besides offices in the UAE , Bahrain , Egypt and KSA

FINANCIAL ANALYSIS
1 . Gross sales increased by Rs . 14922million and excise duty has decreased by Rs . 212 million which has led to a net increase in sales of Rs . 15134 million . Net income has increased by Rs . 1755 million . Utilisation : For the purchase of fixed assets , investments and mergers / acquisitions and paying off loan amounts .

2 . Net increase in cost of sales by Rs . 6403 million . Selling and marketing expenses have increased by Rs . 1351 million . General and administration expenses have increased just by Rs . 404 million . Interest expenditure has decreased by Rs . 1168 million . Funds for the same have been taken from the sale of fixed assets , refund of incorporate deposits , proceeds from ESOPs and by taking loans .

3 . Company has a paid - up capital of Rs . 2 , 934 million , an increase of Rs . 6 million during the current year . During the year , 3 . 2 million shares were allotted on exercise of the options under various Employee Stock Option Plans instituted by the Company . 4. 5. 6 . Premium received on exercise of stock options , added to securities premium amount amounting to Rs . 1 , 909 million .

5 . Year ended March 31 , 2010 the Company has charged to profit and loss account Rs . 1 , 317 million of deferred compensation cost as employee compensation . The cumulative charge to profit and loss account would be treated as share premium on allotment of shares . 6. 7. 8 . Secured loans have increased by Rs . 261 million , on account of securitization of receivable on recourse basis amounting to Rs . 752 Million .

7 . Unsecured loans have increased by Rs . 5 , 360 million . The increase is mainly due to additional PCFC loan availed in the current year . 8. 9. 10 . Goodwill has decreased by Rs . 3 , 175 million during the year . The decrease of Rs . 4 , 877 million is mainly due to impact of reinstating goodwill relating to non integral overseas operations at the exchange rates prevailing on March 31 , 2010 and an increase of Rs . 1 , 712 million on account of acquisition of Yardley group .
11.

DURING THE YEAR , THE COMPANY INVESTED RS . 10 , 900 MILLION ON FIXED ASSETS

UNIT WISE SPENDING

Business Unit IT services & products Others 2010(Rs. in Million) 9,774 417 Consumer Care and Lighting 711

 Sundry Debtors ( net of provision ) for the current year is at Rs . 51 , 150 million against Rs . 50 , 370 million in the previous year . Segment - wise break - up of sundry debtors is outlined below
Particulars 2010 IT Services 46622 and Products Consumer Care 3000 and Lighting

2009

47188 (millions)

Increase(%)
1

Others Total

1528 51150

2414 768 50370

24 99 2

Provision for doubtful debts has increased from Rs 1 , 919 million to Rs . 2 , 327 million in fiscal year 2010 .

878 million, an increase by Rs. 15 , 761 million. The in

Loans and Advances

PARTICUL 2010 ARS ADVANCE 14434 S UNBILLE 16708 RECOVER 27033 D OTHERS ABLE REVENUE 58175 TOTAL 2009 12873(MIL LIONS) 14108 16592 43573 INCREASE (%) 12 18 63 34

Increase in net investment in lease by Rs . 837 million in revenues from Fixed Price Projects from 34 % in the previous year to 41 . 5 % in the current year . Increase of Rs . 10441 million in others is due to increase in Advance tax by Rs . 1 , 902 million , deposits with financial institutions by Rs . 5 , 800million and derivative assets by Rs . 2 , 482 million .

PARTICUL 2010 ARS SUNDRY 19133 CREDITO 1786 ADVANCE RS S FROM 7463 UNEARNE CUSTOME 28961 D OTHER RS REVENUE 57342 LIABILITI TOTAL S ES

2009 19081 824 7462 37830 66469

INCREASE (%) 0 117 15 23 14

Other liabilities have decreased by Rs . 8 , 781 million during the year ended March 31 , 2010 primarily due to Rs . 7 , 872 million decrease in derivative liabilities relating to mark to market losses on derivative instruments designated as cash flow / capital hedges and non - designated forward contracts . The remaining increase is primarily due to increase in subcontracting expenses , administrative expenses , withholding taxes , employee incentives which are in line with increase in employee base , infrastructure and business growth .

PARTICUL 2010 Employee ARS 2967 retirement Warranty benefits 611 provision Provision for 7915 tax Proposed 8809 Dividend Tax on 1283 proposed Others dividend 1763 Total 23348

2009 3111 768 6493 5860 996 1387 18615

INCREASE (%) 5 26 18 33 22 21 20

The company has proposed a cash dividend of Rs . 6 / per share on equity shares during the fiscal year 2010 .

The ratios >>

Gross Profit Ratio= (Gross profit/net sales) * 100 2010, GPR=(86480/272129)*100 =31.78% 2009,GPR=(77749/256995) *100 =30.25%

 NET PROFIT RATIO=(NET PROFIT/NET SALES)*100

2010, NPR=(55095/272129)*100 = 20.25% 2009,NPR=(45196/256995)*100= 17.59%

 CURRENT RATIO= Current assets/current liabilities 2010, CR=123954/80690=1.54 2009,CR=107074/85084=1.25

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