A STUDY ON FINANCIAL PERFORMANCE OF

WIPRO

Project Report submitted to

UNIVERSITY OF CALICUT

In partial fulfillment of the requirement for the award of the degree of

BACHELOR OF COMMERCE

Submitted by

CHRIS BABU

(CCASBCM066)

Under the supervision of

Prof. K.O. FRANCIS

DEPARTMENT OF COMMERCE

CHRIST COLLEGE (AUTONOMOUS), IRINJALAKUDA

MARCH 2021
 CHRIST COLLEGE (AUTONOMOUS), IRINJALAKUDA

CALICUT UNIVERSITY

DEPARTMENT OF COMMERCE
CERTIFICATE

This is to certify that the project report entitled “A Study on Financial

Performance of Wipro” is a bonafide record of project done by Chris Babu,
Reg. No. CCASBCM066, under my guidance and supervision in partial
fulfillment of the requirement for the award of the degree of BACHELOR OF
COMMERCE and it has not previously formed the basis for any Degree, Diploma
and Associateship or Fellowship.

Prof. K.J.JOSEPH Prof. K.O.FRANCIS

Co-ordinator Project Guide
 DECLARATION

I, Chris Babu, hereby declare that the project work entitled “A Study on
Financial Statements of Wipro” is a record of independent and bonafide project
work carried out by me under the supervision and guidance of Prof. K.O. Francis,
coordinator of Bcom (Professional), Christ College, Irinjalakuda.

The information and data given in the report is authentic to the best of my
knowledge. The report has not been previously submitted for the award of any
Degree, Diploma, Associateship or other similar title of any other university or
institute.

Place: Irinjalakuda Chris Babu

Date: CCASBCM066
 ACKNOWLEDGEMENT

I would like to take the opportunity to express my sincere gratitude to all people
who have helped me with sound advice and able guidance.

Above all, I express my eternal gratitude to the Lord Almighty under whose
divine guidance; I have been able to complete this work successfully.

I would like to express my sincere obligation to Rev.Dr. Jolly Andrews, Principal-

in-Charge, Christ college Irinjalakuda for providing various facilities.

I am thankful to Prof. K.J.Joseph, Co-ordinator of B.Com (Finance), for providing

proper help and encouragement in the preparation of this report.

I am thankful to Mr. Lipin Raj, Class teacher for her cordial support, valuable
information and guidance, which helped me in completing this task through
various stages.

I express my sincere gratitude to Prof. K.O. Francis, coordinator of Bcom

(professional), whose guidance and support throughout the training period helped
me to complete this work successfully.

I would like to express my gratitude to all the faculties of the Department for their
interest and cooperation in this regard.

I extend my hearty gratitude to the librarian and other library staffs of my college
for their wholehearted cooperation.

I express my sincere thanks to my friends and family for their support in

completing this report successfully.

Chris Babu
 TABLES OF CONTENTS

CHAPTER NO. CONTENTS PAGE NO:

LIST OF TABLES

LIST OF FIGURES

Chapter 1 INTRODUCTION 1-4

Chapter 2 REVIEW OF LITERATURE 5-15

INDUSTRY AND COMPANY

Chapter 3 16-19
PROFILE

DATA ANALYSIS AND

Chapter 4 20-34
INTERPRETATION

FINDINGS, SUGGESTIONS
Chapter 5 35-37
AND CONCLUSION

ANNEXURE

BIBLIOGRAPHY
 LIST OF TABLES
TABLE
NO: TITLE PAGE NO:

Table showing current ratios from 2015-16 to 2019-

4.1 20
20

4.2 Table showing quick ratio 21

4.3 Table showing absolute quick ratio 22

4.4 Table showing gross profit ratio 23

4.5 Table showing net profit ratio 24

4.6 Table showing rate of return on investment 25

4.7 Table showing rate of return on equity 26

4.8 Table showing fixed asset turnover ratio 27

4.9 Table showing inventory turnover ratio 28

4.10 Table showing debtor turnover ratio 29

4.11 Table showing debt-equity ratio 30

4.12 Table showing interest coverage ratio 31

4.13 Table showing debt-asset ratio 32

Table showing Comparative balance sheet for the

4.14 33
year 2017-18, 2018-19

Table showing Comparative balance sheet for the

4.15 34
year 2018-19, 2019-20
 LIST OF FIGURES

FIGURE
NO: TITLE PAGE NO:

4.1 Figure showing current ratios from 2015-16 to 2019-20 20

4.2 Figure showing quick ratios 21

4.3 Figure showing absolute quick ratio 22

4.4 Figure showing gross profit ratio 23

4.5 Figure showing net profit ratio 24

4.6 Figure showing rate of return on investment 25

4.7 Figure showing rate of return on equity 26

4.8 Figure showing fixed assets turnover ratio 27

4.9 Figure showing inventory turnover ratio 28

4.10 Figure showing debtor turnover ratio 29

4.11 Figure showing debt-equity ratio 30

4.12 Figure showing interest coverage ratio 31

4.13 Figure showing debt-asset ratio 32

 CHAPTER 1
INTRODUCTION
 INTRODUCTION

Financial statement analysis is the process of analyzing a company's financial

statements for decision-making purposes. External stakeholders use it to understand
the overall health of an organization as well as to evaluate financial performance and
business value. Internal constituents use it as a monitoring tool for managing the
finances. The financial statements of a company record important financial data on
every aspect of a business’s activities. As such they can be evaluated on the basis of
past, current, and projected performance.

In general, financial statements are centered around generally accepted accounting

principles (GAAP) in the India. These principles require a company to create and
maintain three main financial statements: the balance sheet, the income statement,
and the cash flow statement. Public companies have stricter standards for financial
statement reporting. Public companies must follow GAAP standards which requires
accrual accounting. Private companies have greater flexibility in their financial
statement preparation and also have the option to use either accrual or cash
accounting.

Several techniques are commonly used as part of financial statement analysis. Three
of the most important techniques include horizontal analysis, vertical analysis, and
ratio analysis. Horizontal analysis compares data horizontally, by analyzing values of
line items across two or more years. Vertical analysis looks at the vertical affects line
items have on other parts of the business and also the business’s proportions. Ratio
analysis uses important ratio metrics to calculate statistical relationships.

1
As mentioned, there are three main financial statements that every company creates
and monitors: the balance sheet, income statement, and cash flow statement.
Companies use these financial statements to manage the operations of their business
and also to provide reporting transparency to their stakeholders. All three statements
are interconnected and create different views of a company’s activities and
performance.

Financial statements are maintained by companies daily and used internally for
business management. In general both internal and external stakeholders use the
same corporate finance methodologies for maintaining business activities and
evaluating overall financial performance.

When doing comprehensive financial statement analysis, analysts typically use

multiple years of data to facilitate horizontal analysis. Each financial statement is
also analyzed with vertical analysis to understand how different categories of the
statement are influencing results. Finally ratio analysis can be used to isolate some
performance metrics in each statement and also bring together data points across
statements collectively.

1.1 Scope and Significance of Study

The finding of the study can be used to know the operational efficiency of the
business. It is helpful in measuring the solvency of the firm and useful for
comparison of present and past results. It also helps in measuring the profitability,
Inter-firm comparison, bankruptcy and failure detection, and also helps in
forecasting. The study confined to IT sector of Wipro. Findings will useful to the
management to help in their decision making for the benefit of the company.

2
1.2 Objectives of the Study
• To ascertain liquidity and profitability position of Wipro from 2015-16 to
2019-20
• To analyze the profitability during the period of study
• To analyze overall financial position of the company
• To suggest measures to improve the performance of the company on the
basis of findings of the study

1.3 Research Design

• 1.4.1 Nature of the study :
The study is descriptive and analytical in nature
• 1.4.2 Nature of the data :
This study is based on mainly secondary data
• 1.4.3 Sources of data :
Secondary data are obtained from the companies published financial
statements, books, journals and internets
• 1.4.4 Tools for analysis :
The main tools used are ratio analysis and comparative financial statement
analysis
• 1.4.5 Period of study :
The study confines to a period of 5 years from 2015-16 to 2019-20

1.4 Limitations of the Study

• The study is limited to only 5 years financial data
• The inherent limitations of secondary data may affect the results of the
study

3
 • Limited resources was available for the study especially in the covid
context, so, any in depth study couldn’t be conducted
• The ratios are calculated from past financial statements and these are not
indicators of future performance of the company

1.5 Chapter Scheme

The study report is organized into 5 chapters:

 Chapter 1 : Introduction
This chapter deals with the objectives of the study, significance, methodology
and limitations
 Chapter 2 : Review of literature
This includes review of conceptual and empirical literature related to the topic
 Chapter 3 : Industry and company profile
This deals with the profile of the industry and the profile of Wipro
 Chapter 4 : Data analysis and interpretation
This includes the analysis of the data collected for this study
 Chapter 5 : Findings, suggestions and conclusion
It includes the major findings of the study, suggestions and conclusion

4
 CHAPTER 2
REVIEW OF LITERATURE
 REVIEW OF LITERATURE

2.1 CONCEPTUAL REVIEW

Financial analysis is the process of identifying the financial strengths and weaknesses
of the firm. It is done by establishing relationships between the items of financial
statements like the balance sheet, profit and loss account, etc. Financial analysis can
be undertaken by management of the firm, viz., Owners, creditors, investors, and so
on. Financial analysis may be done with the help of ratios and undertaking a ratio
analysis.

2.1.1 Definition

Financial statement analysis is the process of reviewing and analyzing a company’s

financial statements for decision making purposes. Financial performance analysis
includes analysis and interpretation of financial statements in such a way that it
undertakes full diagnosis of the profitability and financial soundness of the business.
These statements include the profit and loss statement, balance sheet, and statement
of cash flows, notes to accounts and a statement of changes in equity.

2.2 Tools for analysis financial statements

2.2.1 Ratio Analysis

Ratio analysis is a powerful tool of financial analysis. A ratio is used as benchmark

for evaluating the financial position and performance of the firm. The relationship
between two accounting figures expressed mathematically is known as financial
ratio. Ratios helps to summarize large sums of data and to make qualitative
judgement of the firms financial performance. Here we compare the past period of
ratios of the firm and thereby make interpretations about the firm.

5
2.2.1.1 Liquidity Ratios

It measures the ability of the firm to meet its short term obligations, that is the
capacity of the firm to pay its current liabilities as and when they fall due. These
ratios reflect the short term financial solvency of the firm. The failure to meet the
obligations on due time may result in bad credit image and loss of creditors
confidence, on the other hand very high degree of liquidity is also not desirable since
it would imply that funds are idle and earn nothing. So it is necessary to have a
balanced liquidity.

The various ratios that interprets about the liquidity of the firm are:

1. Current Ratio:
The current ratio measure the short term solvency of the firm. It establishes
the relationship between current assets and current liabilities. It is calculated
by dividing current assets by current liabilities.

Current ratio = current assets / current liabilities

A current ratio of 2:1 is considered satisfactory. The higher the ratio, the
greater the margin of safety.

2. Quick Ratio:
It has been an important indicator of the firms liquidity position and is used as
a complementary ratio to current ratio. It establishes the relationship between
quick assets and current liabilities. It is calculated by dividing quick assets by
current liabilities.

Quick ratio = quick assets / current liabilities

6
 A quick ratio of 1:1 is considered to represent a satisfactory financial
condition. Quick ratio is a more penetrating test of liquidity than the current
ratio, yet it should be used cautiously.

3. Absolute Quick Ratio:

Super Quick or Absolute Liquid Ratio assets means account cash in hand,
cash at bank, and marketable securities or temporary investments. The almost
all favorable value of this ratio greater than one.

Absolute quick ratio = Absolute quick assets / Current liabilities

It means absolute quick assets worth one half of the worth of current liabilities
are sufficient for satisfactory liquid position of a business.

2.2.1.2 Profitability Ratios

The profitability ratios of a firm can be measured by calculating various profitability

ratios. Generally two groups of profitability ratios are calculated:

• Profitability in relation to sales

• Profitability in relation to investments

It is a fact that sufficient profits must be earned to sustain the operation of the
business to be able to obtain funds from investors for expansion and growth to
contribute towards the responsibility of welfare of the society in business
environment and globalization. The profitability ratios are calculated to measure the
operating efficiency of the firm.

7
The following are the ratios used for the analysis:

1. Gross Profit Ratio:

It measures the relationship between gross profit and sales. It is a useful
indication of profitability of the business. This ratio is usually expressed in
percentage.

Gross profit ratio = Gross profit × 100

Net sales

2. Net Profit Ratio:

It measures the relationship between net profit and sales of a firm. It indicates
managements efficiency in manufacturing, administrating, and selling the
products. It is calculated by dividing net profit after tax by sales.

Net profit ratio = Earnings after tax × 100

Net sales

3. Rate of Return on Investment:

Rate of return indicates profitability of the business and is very much in use
among financial analysis. It indicates the relation of net profit with capital
employed in the business. Net profit will be before interest, tax ,and dividend.
Capital employed means long term funds.

ROI = EBIT × 100

Total assets

8
 4. Rate of Return on Equity:
Rate of return on equity shows what percentage of profit is earned on the
capital invested by ordinary shareholders. It is used to understand the total
profit earned on the shareholders investment.

Rate of return on equity = Profit for the equity

Net worth

2.2.1.3 Activity Ratio

The relationship between assets and sales is known as assets turnover ratio or activity
ratios. Several activity ratios can be calculated upon depending on the group of
assets, which are related to sales.

The various activity ratios are:

1. Fixed Asset Turnover Ratio:

To ascertain the efficiency and profitability of the business the total fixed
assets are compared to sales. The more the sales in relation to the amount
invested in fixed assets, the more efficient is the use of the fixed assets. It
indicates higher efficiency.

Fixed assets turnover = Sales .

Net fixed assets

2. Inventory Turnover Ratio:

Inventory turnover ratio is the no. of times the average stock is turned over
during the year is known as stock turnover ratio. It is the cost of goods sold
divided by average stock.

9
 Inventory turnover ratio = COGS .
Average stock

3. Debtor Turnover Ratio:

Debtor turnover ratio is the ratio that suggests the no. of times the amount of
credit sale is collected during the year. It is found out by dividing sales by
average debtors.

Debtor turnover ratio = Sales .

Average debtors

2.2.1.4 Leverage Ratios

The solvency or leverage ratios throws light on the long term solvency of a firm
reflecting its ability to assure the long term creditors with regard to periodic payment
of interest during the period and loan repayment of principal on maturity or in
predetermined instalments at due dates. The ratio is based on the relationship
between borrowed funds and owners capital and it is calculated from the balance
sheet and profit/loss account.

The various leverage ratios are:

1. Debt-Equity Ratio:
It indicates the relationship describing the lenders contribution for each
rupee of the owners contribution is called debt-equity ratio. Debt equity
ratio is directly computed be dividing total debt by net worth. Lower
the debt equity ratio, higher the degree of protection.

Debt-equity ratio = Total debt .

Net worth
10
 2. Interest Coverage Ratio:
The interest coverage ratio or time interest earned is used to test the
firms debt servicing capacity. The interest coverage ratio is computed
by dividing earnings before interest and tax by interest charges. The
ratio obtained shows the no. of times the interest charges are covered
by the funds that are ordinarily available for their payment.

Interest coverage ratio = EBIT .

Interest

3. Debt-Asset Ratio:
The debt ratio measures how much of the firm's asset base is financed
using debt. You calculate this by dividing a company's debt by its
assets. If a firm's debt-to-assets ratio is 0.5, that means, for every 1 unit
of debt, there are 2 units worth of assets.

Debt ratio = Total debt .

Total assets

2.2.2 Comparative Financial Statements

A comparative statement is a statement used to compare a particular financial

statement with prior period statements. It means a comparative study of components
or elements or items of balance sheet and statement of profit and loss for 2 or more
years. Previous financials are presented alongside the latest figures in side by side
columns, enabling investors to identify trends, track a company’s progress and
compare it with industry rivals. There are 2 types of comparative statements namely,

11
comparative balance sheet and comparative statement of profit and loss. In this study
the focus is on comparative balance sheet.

• Comparative balance sheet

Comparative balance sheet analysis is the study of the trend of the same items, group
of items and computed items in two or more balance sheets of the same business
enterprise on different dates. Comparative balance sheet of an enterprise as on two or
more dates is used for comparing assets, liabilities and capital and ascertaining
increase and decrease in those items. It is horizontal analysis of balance sheet in
which each item of assets, equity and liabilities is analyzed horizontally for two or
more accounting periods.

2.2.3 Common Size Statements

Common size statements are a form of analysis and interpretation of the financial
statement. It is also known as vertical analysis. This method analyses financial
statements by taking into consideration each of the line items as a percentage of the
base amount for that particular accounting period. These statements are always
expressed in terms of percentages. There are two types of common size statements
namely common size balance sheet and common size income statement. In this the
focus is on common size balance sheet.

• Common size balance sheet

A statement in which balance sheet items are expressed as the ratio of each asset to
total assets and the ratio of each liability is expressed as a ratio of total liabilities is
called common-size balance sheet. The most valuable aspect of a common size
balance sheet is that it supports ease of comparability. Common size balance sheet
shows the makeup of a company’s various assets and liabilities through the
presentation of percentages.

12
2.3 EMPIRICAL LITERATURE

A few studies in this field of IT industry were found in the course of review of
literature. Contents of the important ones are briefly discussed below:

Somesh Kumar (2007) examined in his study the growth performance and past and
present trend of Indian IT industry. He also discussed about the government policies
and it's effect, with adverse or favourable. He described how IT sector acts as a
catalyst of growth and development.

T.S.Srinivasan (2005) examined in this study the growth rate of revenues as earned
by IT/ITES sector and its growing contribution towards GDP. He made the
comparison of spending on this sector between India and China and also presented
the consequences of trouble with Y2K problems with its effect on this sector that
made great differences in revenues. But still the consistent growth rate can be
observed from this study.

Balaji Parthsarathy (2004) discussed in his study the different phases of the IT
industry starting prior to 1984. He presented the revenues earned by this industry
from international as well as from domestic market, percentage of export revenues
and share of software technology parks in such revenues from pre liberalized period.

Suma. S. Athreye (2003) discussed about the growth of Indian software companies
during different periods and showing the growth of software exports for different

13
times with a detailed study on slow down period. This study also presented the
picture of financial liberalization along with the evolution in Indian software industry
where the evolving strategies of firm lie at the heart of an unfolding dynamic of
sectors growth.

Aarti Shah (2003) discussed Information Technology scenario can be viewed from
different perspective that Indian IT industry as an industry caters to the IT
requirements and its deployment within Indian industry. To make the improvement in
business efficiency new solutions and ideologies are being accepted by helping in
automating business

Neeraj Verma (2007) discussed about the problems of linear growth with its
overcome measures in Indian Software industry. Opening up the Indian market to the
foreign players and the economic reforms of 1990 acted as a catalyst for Indian
Software industry Continues increase in export in export as well as domestic
revenues accompanied with growing number of employees indicates a total
spectacular growth. It also specifies two different models of revenue recognition.

Zaheer Hussain (2008) The impact of IT is not restricted to its passive contribution to
GDP alone. IT acts as a transformational agent in Indian economic development
helps to promote infrastructure like power, road, electricity etc. Growth of domestic
market shows a CAGR of 23% over 05-06. The infrastructures cost tends to going
down with this prosperous growth. But several problems like absence of active
demand, scarcity in proper infrastructure also exists. It also recognizes that a vibrant
and innovative domestic IT market is sine qua non for sustaining the countries IT
industry’s competitive advantage.

14
Rafiq Dossani (2005) discussed in his study the evolution of India’s software
industry and the effect of rigid and hostile government policies concerned this sector
internal as well as international market. He also shows that technologically
sophisticated industry can develop even when many conditions typically present
elsewhere are missing. He also examined the conditions in which transnational entry
was made.

Athulya K R (2006) IT, a fastest growing industry in India makes a significant

contribution to GDP in way of exportation of IT services and ITES product and
becomes a preferred global sourcing base in this sector. But some problems are there
in relation to risk management, human capital attraction and retention and cost
management. A key demand driver for Indian IT services and ITES industry has been
the changing global business landscape, which has exerted performance pressure on
MNC enterprises.

Thomas P A (2004) The value proposition of offshore development being well

established, corporate in west are increasingly outsourcing to India and it promises a
bright future for Indian Software industry as a whole. In spite of having all favorable
factors the Indian IT sector acquires only 3% of global market. As per Budget
parameters of 2004 like SEZ, Service Tax, Surcharge etc creates a great impact on
this growing industry.

Conclusion: The above mentioned industrial and company reviews do not contain
sufficient information on the performance of Wipro, so, this project is done with the
aim to fulfill the financial analysis of Wipro so that the management use the findings
for decision making for the benefit of the company.

15
 CHAPTER 3
INDUSTRY AND COMPANY
PROFILE
 INDUSTRY AND COMPANY PROFILE

3.1 INDUSTRY PROFILE

Indian IT industry begin in the years of 1970s and contributing to the economic
growth and helping industrial growth it achieved a major breakthrough in 1990s.The
year of 1995-1996 was a smashing year for the Indian IT and computer industry.
With height quality and price performance IT industry led to outsmart all the other
sectors of the country. Industry has grown six-fold in revenue terms, and hence
contributing to GDP by more than 9.3% in FY 2016-2017.In the same year, India
contributed as world’s NO.1 sourcing destination with a significant share of 55%.
The Indian software industry hence being one of the most significant and crucial
industries of Indian economy holds utmost importance and cannot be unseen. This
paper analyses some IT companies of India and enables us to better understand their
performance.

The country's cost competitiveness in providing Information Technology (IT)

services, which is approximately 3-4 times cheaper than the US, continues to be its
Unique Selling Proposition (USP) in the global sourcing market. India’s highly
qualified talent pool of technical graduates is one of the largest in the world and is
available at a cost saving of 60-70 per cent to source countries. This large pool of
qualified skilled workforce has enabled India’s IT industry amounts to 12.3 per cent
of the global market, largely due to exports. Export of IT services accounted for
56.12 per cent of total IT exports (including hardware) from India. The Business
Process Management (BPM) segment accounted for 23.46 per cent of total IT exports
during FY15. The IT-BPM sector is estimated to expand at a CAGR of 9.5 per cent
to US$ 300 billion by 2020.The Government of India has extended tax holidays to
the IT sector for software technology parks of India (STPI) and Special Economic
Zones (SEZs). Further, the country is providing procedural ease and single window
clearance for setting up facilities.

Increasing competition, pressure on billing rates of traditional services and increasing

commoditization of lower-end services are among the key reasons forcing the Indian
software industry to make a fast move up in the software value chain. The new digital
technologies like social media, mobility, analytics, and cloud computing (SMAC) has
permanently changed the way Indian IT firms do business. The Indian government is

16
emphasizing on better technology enabled delivery mechanisms for a multitude of
government projects. Further, with the new digital India and start up Indian initiatives
being launched, the domestic market for software services has a bright future ahead.
Abundant supply across segments, mainly lower-end, such as ADM. Lower supply in
higher-end areas like IT/Business Consulting, but competition is very tough.
Competition is global in nature and stretches across boundaries and geographies. It is
expected to intensify due to the attempted replication of the Indian off shoring model
by MNC IT majors as well as small startups.

3.2 PROFILE OF WIPRO

3.2.1 History of Wipro

The company was incorporated on 29 December 1945 in Amalnar, Maharashtra by

Mohamed Premji as "Western India Palm Refined Oil Limited", later abbreviated to
"Wipro". It was initially set up as a manufacturer of vegetable and refined in
Amalner, Maharashtra, British India, under the trade names of Kisan, Sunflower, and
Camel. In 1966, after Mohamed Premji's death, his son Azim Premji took over Wipro
as its chairman at the age of 21.

During the 1970s and 1980s, the company shifted its focus to new opportunities in
the IT and computing industry, which was at a nascent stage in India at the time. On
7 June 1977, the name of the company changed from Western India Vegetable
Products Limited, to Wipro Products Limited. In 1982, the name was changed again,
from Wipro Products Limited to Wipro Limited. Wipro continued to expand in the
consumer products domain with the launch of "Ralak" a Tulsi based family soap and
"Wipro Jasmine", a toilet soap.

3.2.2 Birth of the Name Wipro

As the organisation grew and diversified into operations of Hydraulic Cylinders and
InfoTech, the name of the organisation didn’t adequately reflect its operations. Azim
Premji himself in 1979 selected the name “Wipro” largely an acronym of Western
India Products Ltd. Thus was born the brand Wipro. The name Wipro was unique
and gave the feel of an “international” company. So much so that some dealers even
sent their cheques favouring Wipro (India) Ltd. By the early 90’s, Wipro product
basket had soaps called Wipro Shikakai, Baby products under Wipro baby soft,
Hydraulic cylinders branded Wipro, PC's under the brand name Wipro, a joint

17
venture company with GE named Wipro GE and software services brand named
Wipro. The Wipro logo was a “W”, but it was not consistently used in the products.
It was clearly felt that the organisation was not leveraging its brand across the various
businesses.

3.2.3 Business Description

Wipro Limited, together with its subsidiaries and associates is a leading India based
provider of IT services and products, including business process outsourcing
services, globally. Further, Wipro has other businesses such as India and Asia IT
services and products and consumer care and lighting. Wipro is headquartered in
Bangalore, India.

Wipro technologies is a global services provider delivering technology driven

business solutions that meet the strategic objectives of clients. Wipro has 40+
'Centers of Excellence' that create solutions around specific needs of industries.
Wipro delivers unmatched business value to customers through a combination of
process excellence, quality frame works and service delivery innovation.

Wipro is the world’s first CMM level 5 certified software services company and the
first outside USA to receive IEEE software process award. Wipro is a $3.5 billion
global company in information technology services, R&D services, business process
outsourcing. Team Wipro is 75,000 strong from 40 nationalities and growing. Wipro
is present across 29 countries, 36 development centres, investors across 24 countries.

Global IT Services and Products:

The company’s global IT services and products segment provides IT services to

customers in the Americas, Europe and Japan. The range of its services includes IT
consulting, custom application design, development, re engineering and maintenance,
systems integration, package implementation, BPO services, R&D in the areas of
hardware and software design.

Customised IT solutions:

Wipro provides with its clients customised IT solutions in the areas of enterprise IT
services, technology infrastructure support services, and research and development
services. The company provides a range of enterprise solutions primarily to
Fortune1000 and global 500 companies. Its services extend from enterprise
application services to e business solutions.

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Technology Infrastructure Service:

Wipro offers technology infrastructure support services, such as help desk

management, systems management and migration, network management and
messaging services. The company provides its IT services and products to clients
with around-the-clock support services.

Research and Development Services:

Wipro's R&D services are organised into three areas of focus: telecommunication
and inter-networking, embedded systems and internet access devices, and
telecommunications and service providers. The company provides software and
hardware design, development and implementation services in areas, such as fibre
optics communication networks, wireless networks, data networks, voice switching
networks and networking protocols.

Business Process Outsourcing Service:

Wipro BPO's service offerings include customer interaction services, such as IT

enabled customer services, marketing services, technical support services and IT
helpdesks; finance and accounting services, such as accounts payable and accounts
receivable processing, mortgage processing and document management.

The company’s registered office address is at Doddak annelli, Sarjapur road,

Bangalore – 560035,India.

19
 CHAPTER 4
DATA ANALYSIS AND
INTERPRETATION
 DATA ANALYSIS AND INTERPRETATION

Data collected are analyzed using several variables, results of which are given below:

4.1 Liquidity Ratios

4.1.1 Current Ratio

Table 4.1: Table showing current ratio from 2015-16 to 2019-20

Current Assets Current

Year Ratio
(crores) Liabilities
2015-16 45260.3 15211.9 2.9:1
2016-17 48727.1 13839.9 3.5:1
2017-18 42922.2 15035.9 2.8:1
2018-19 47730.4 16144.6 2.9:1
2019-20 45713.3 16433.8 2.8:1
(Source: Financial statements)

From the table it is observed that the firm has a steady rate of ratio except a spike
during 2016-17. The firm has a ratio above 2 during the period of 5 years, and is in a
position to pay off its current obligations in all the years.

Figure 4.1: Figure showing current ratio from 2015-16 to 2019-20

3.5
3
2.5
2
1.5
1
0.5
0
2015-16 2016-17 2017-18 2018-19 2019-20

20
4.1.2 Quick Ratio

Table 4.2: Table showing quick ratio

Quick Assets Current

Year Ratio
(crores) Liabilities
2015-16 44734.1 15211.9 2.9:1
2016-17 48731.2 13839.9 3.5:1
2017-18 42627.9 15035.9 2.8:1
2018-19 47390.1 16144.6 2.9:1
2019-20 45539.2 16433.8 2.8:1
(Source: Financial statements)

From the table above it is observed that the firm has a steady ratio on all years except
a spike in 2016-17. The firm has a ratio above 2 during the period of 5 years, and is
in a position to pay off its quick obligations in all the years.

Figure 4.2: Figure showing quick ratio

3.5
3
2.5
2
1.5
1
0.5
0
2015-16
2016-17
2017-18
2018-19
2019-20

21
4.1.3 Absolute Quick Ratio

Table 4.3: Table showing absolute quick ratio

Absolute Quick Current

Year Ratio
Assets (crores) Liabilities
2015-16 28828.3 15211.9 1.9:1
2016-17 32663.3 13839.9 2.4:1
2017-18 27163.2 15035.9 1.8:1
2018-19 32389 16144.6 2:1
2019-20 29407.5 16433.8 1.8:1
(Source: Financial statements)

From the table it is observed that the ratio is fluctuating. The firm has a ratio above 1
in all the 5 years during the period and shows that the firm is in a position to pay off
its current liabilities by just using its absolute liquid assets.

Figure 4.3: Figure showing absolute quick ratio

2.5

1.5

0.5

0
2015-16 2016-17 2017-18 2018-19 2019-20

22
4.2 Profitability Ratios

4.2.1 Gross Profit Ratio

Table 4.4: Table showing gross profit ratio

Gross Profit
Year Net Sales Ratio
(crores)
2015-16 11469.6 44680.8 25.7%
2016-17 11734.8 46047.8 25.5%
2017-18 11049.1 44710 24.7%
2018-19 10804.8 48123.8 22.4%
2019-20 12148.8 50407 24.1%
(Source: Financial statements)

From the above table it is observed that the ratio is declining until 2019-20.The firm
have always maintained ratio more than 20% in all years. The ratio has been
decreasing due to increase in expenses.

Figure 4.4: Figure showing gross profit ratio

26
25.5
25
24.5
24
23.5
23
22.5
22
21.5
21
20.5
2015-16 2016-17 2017-18 2018-19 2019-20

23
4.2.2 Net Profit Ratio

Table 4.5: Table showing net profit ratio

Year Net Profit (crores) Net Sales Ratio

2015-16 10594.2 44680.8 23.7%

2016-17 10687.1 46047.8 23.2%
2017-18 10034.3 44710 22.4%
2018-19 9870.5 48123.8 20.5%
2019-20 11007.7 50407 21.8%
(Source: Financial statements)

From the above table it is observed that the ratio is declining except a spike in 2019-
20. Although the ratio is declining the firm always managed a ratio above 20% in all
years, it shows the good management of operations. The ratio was declining so
management should take some steps to reduce costs.

Figure 4.5: Figure showing net profit ratio

24
23
22
21
20
19
18
2015-16
2016-17
2017-18
2018-19
2019-20

24
4.2.3 Rate of Return on Investment

Table 4.6: Table showing rate of return on investment

Year EBIT (crores) Total Assets Ratio

2015-16 12019.5 58924.9 20.4%

2016-17 12202.8 63156.9 19.3%
2017-18 11433.4 58671.3 19.5%
2018-19 11329.7 66998.1 16.9%
2019-20 12684 65306.4 19.4%
(Source: Financial statements)

From the above table it is observed that the ratio is fluctuating. The firm managed a
ROI above 19% in all years except on 2018-19. The firm needs to utilize its
investments properly to achieve a more steady and growing ratio.

Figure 4.6: Figure showing rate of return on investment

25

20

15

10

0
2015-16 2016-17 2017-18 2018-19 2019-20

25
4.2.4 Rate of Return on Equity

Table 4.7: Table showing rate of return on equity

Equity Profit
Year Net Worth Ratio
(crores)
2015-16 12197.4 58924.9 20.7%
2016-17 11241.9 63156.9 17.8%
2017-18 10502.2 58671.3 17.9%
2018-19 12461.6 66998.1 18.6%
2019-20 13844.9 65306.4 21.2%
(Source: Financial statements)

From the above table it is clear that the ratio is fluctuating. The firm managed to
provide a return over 18% in all years except 2016-18. The firm needs to utilize the
investment of the shareholder more efficiently to achieve more steady ratios.

Figure 4.7: Figure showing rate of return on equity

22
21
20
19
18
17
16
2015-16
2016-17
2017-18
2018-19
2019-20

26
4.3 Activity Ratios

4.3.1 Fixed Asset Turnover Ratio

Table 4.8: Table showing fixed asset turnover ratio

Net Sales
Year Net Fixed Asset Ratio
(crores)
2015-16 44680.8 4391.6 10.2 times
2016-17 46047.8 5056.3 9.1 times
2017-18 44710 5657.6 7.9 times
2018-19 48123.8 6513.7 7.4 times
2019-20 50407 8512.9 5.9 times
(Source: Financial statements)

From the above table it is clear that the ratio is declining. This is mainly due to the
rise in fixed assets and lesser rise in net sales. The firm is investing in more fixed
assets for expansion of business.

Figure 4.8: Figure showing fixed asset turnover ratio

12

10

0
2015-16 2016-17 2017-18 2018-19 2019-20

27
4.3.2 Inventory Turnover Ratio

Table 4.9: Table showing inventory turnover ratio

Year COGS (crores) Average Stock Ratio

2015-16 35816.9 421.9 84.9 times
2016-17 39434.2 304.7 129.4 times
2017-18 38904.6 256.1 151.9 times
2018-19 41205.3 291.4 141.4 times
2019-20 43608.5 150.6 289.5 times
(Source: Financial statements)

From observing the above table it is clear that the ratio is rising except a fall in 2018-
19. The ratio is rising because the firm has good management of stock and is going
efficiently because the stock is cleared fast.

Figure 4.9: Figure showing inventory turnover ratio

300
250
200
150
100
50
0
2015-16
2016-17 Series 1
2017-18
2018-19
2019-20

28
4.3.3 Debtor Turnover Ratio

Table 4.10: Table showing debt turnover ratio

Net Sales
Year Average Debtors Ratio
(crores)
2015-16 44680.8 7446.8 6 times
2016-17 46047.8 7804.7 5.9 times
2017-18 44710 7983.9 5.6 times
2018-19 48123.8 8442.7 5.7 times
2019-20 50407 9334.6 5.4 times
(Source: Financial statements)

Here the ratio is continuously decreasing, it shows improved management every year
as the collection period of debt is reducing every year. The management is efficiently
able to collect the money from debtors.

Figure 4.10: Figure showing debtor turnover ratio

5.9

5.8

5.7

5.6

5.5

5.4

5.3

5.2

5.1
2015-16 2016-17 2017-18 2018-19 2019-20

29
4.4 Leverage Ratios

4.4.1 Debt-Equity Ratio

Table 4.11: Table showing debt-equity ratio

Long term Debt Shareholders

Year Ratio
(crores) Equity
2015-16 1146.5 494.1 2.3:1
2016-17 1146.3 486.1 2.4:1
2017-18 72.4 904.8 0.1:1
2018-19 22 1206.8 0.02:1
2019-20 25.1 1142.7 0.02:1
(Source: Financial statements)

From observing the above table it is clear that the ratio is declining. The firm over the
period have issued shares and depend less on borrowings. It can be understood by the
change in the composition of debt-equity ratio over the period.

Figure 4.11: Figure showing debt-equity ratio

2.5

1.5

0.5

0
2015-16
2016-17
2017-18
2018-19
2019-20

30
4.4.2 Interest Coverage Ratio

Table 4.12: Table showing interest coverage ratio

Year EBIT (crores) Interest Ratio

2015-16 12019.5 556.5 21.6
2016-17 12202.8 622.6 19.6
2017-18 11433.4 614.7 18.6
2018-19 11329.7 678.4 16.7
2019-20 12684 716.6 17.7
(Source: Financial statements)

From the above table it is clear that the ratio is declining except a spike in 2019-20. It
shows the firms capacity to payback debt is declining. This is something that the
management needs to work on.

Figure 4.12: Figure showing interest coverage ratio

25

20

15

10

0
2015-16 2016-17 2017-18 2018-19 2019-20

31
4.4.3 Debt-Asset Ratio

Table 4.13: Table showing debt asset ratio

Total Debt
Year Total Assets Ratio
(crores)
2015-16 17699.2 58924.9 0.3:1
2016-17 16451.3 63156.9 0.25:1
2017-18 16408.7 58671.3 0.3:1
2018-19 17606.1 66998.1 0.25:1
2019-20 18852.7 65306.4 0.3:1
(Source: Financial statements)

From the above table it is observed that the ratio is close to 0.3 in all the 5 years
during the period. The low ratio indicates that the firm prefers to finance its assets
more through equity than debt.

Figure 4.13: Figure showing debt asset ratio

0.3
0.29
0.28
0.27
0.26
0.25
0.24
0.23
0.22
2015-16
2016-17
2017-18
2018-19
2019-20

32
4.5 Comparative Balance Sheet Analysis

Table 4.14: Table showing Comparative balance sheet for the year 2017-18, 2018-19

(₨. In Crores)

Absolute Percentage
Particulars 2017-18 2018-19
amounts change
Assets
1. Non-current
15,704.00 19,267.70 3563.7 22.7%
assets
2. Current assets 42,967.30 47,730.40 4763.1 11.1%
Total Assets 58,671.30 66,998.10 8326.8 14.2%

Equity and
Liabilities
1. Shareholders
42,262.60 49,392.00 7129.4 16.9%
Funds
2. Non-current
1,372.80 1,461.50 88.7 6.5%
liabilities
3. Current
15,035.90 16,144.60 1108.7 7.4%
liabilities
Total Equity and
58,671.30 66,998.10 8326.8 14.2%
Liabilities
(Source: compiled from annual report)

From the above table it is observed that total equity has risen by 16.9%, non-current
liabilities have risen by 6.5% and current liabilities by 7.4%. it is also observed that
the non-current assets have risen by 22.7% and current assets by 11.1%.

33
Table 4.15: Table showing Comparative balance sheet for the year 2018-19, 2019-20

(₨. In Crores)

Absolute Percentage
Particulars 2018-19 2019-20
amounts change
Assets
1. Non-current
19,267.70 19,593.10 325.4 1.7%
assets
2. Current assets 47,730.40 45,713.30 (2017.1) (4.2%)
Total Assets 66,998.10 65,306.40 (1691.7) (0.025%)

Equity and
Liabilities
1. Shareholders
49,392.00 46,453.70 (2938.3) (5.9%)
Funds
2. Non-current
1,461.50 2,408.90 947.4 64.8%
liabilities
3. Current
16,144.60 16,443.80 299.2 1.9%
liabilities
Total Equity and
66,998.10 65,306.40 (1691.7) (0.025%)
Liabilities
(Source: compiled from annual report)

From the above table it is observed that total equity has decreased by 5.9%, non-
current liabilities have risen by 64.8% and current liabilities by 1.9%. it is also
observed that the non-current assets have risen by 1.7% and current assets have
decreased by 4.2%.

34
 CHAPTER 5
FINDINGS, SUGGESTIONS AND
CONCLUSION
 FINDINGS, SUGGESTIONS AND CONCLUSION

5.1 FINDINGS

 The firm has a current ratio above 2 during the period of 5 years, and is in a
position to pay off its current obligations in all the years
 The firm has a quick ratio above 2 during the period of 5 years, and is in a
position to pay off its quick obligations in all the years.
 The firm has an absolute quick ratio above 1 in all the 5 years during the
period and shows that the firm is in a position to pay off its current liabilities
by just using its absolute liquid assets.
 The firm have always maintained gross profit ratio more than 20% in all years.
The ratio has been decreasing due to increase in expenses.
 The firm always managed a net profit ratio above 20% in all years, it shows
the good management of operations. The ratio was declining so management
should take some steps to reduce costs.
 The firm managed a ROI above 19% in all years except on 2018-19. The firm
needs to utilize its investments properly to achieve a more steady and growing
ratio.
 The firm managed to provide a return on equity over 18% in all years except
2016-18. The firm needs to utilize the investment of the shareholder more
efficiently to achieve more steady ratios.
 The fixed asset turnover ratio is declining. This is mainly due to the rise in
fixed assets and lesser rise in net sales. The firm is investing in more fixed
assets for expansion of business.
 The inventory turnover ratio is rising except a fall in 2018-19. The ratio is
rising because the firm has good management of stock and is going efficiently
because the stock is cleared fast.

35
  The debtor turnover ratio is continuously decreasing, it shows improved
management every year as the collection period of debt is reducing every year.
The management is efficiently able to collect the money from debtors.
 The debt-equity ratio is declining. The firm over the period have issued shares
and depend less on borrowings. It can be understood by the change in the
composition of debt-equity ratio over the period.
 The interest coverage ratio is declining except a spike in 2019-20. It shows the
firms capacity to payback debt is declining. This is something that the
management needs to work on.
 The debt asset ratio is close to 0.3 in all the 5 years during the period. The
low ratio indicates that the firm prefers to finance its assets more through
equity than debt.
 From table 4.13 it is observed that total equity has risen by 16.9%, non-current
liabilities have risen by 6.5% and current liabilities by 7.4%. it is also
observed that the non-current assets have risen by 22.7% and current assets by
11.1%.
 From table 4.14 it is observed that total equity has decreased by 5.9%, non-
current liabilities have risen by 64.8% and current liabilities by 1.9%. it is also
observed that the non-current assets have risen by 1.7% and current assets
have decreased by 4.2%.

5.2 SUGGESTIONS

 The company’s future plans for expansion are clear due to increased
investment in fixed assets. The company must make efficient use of these
assets to enable increased profits.

36
  Though the company’s sale is continuously rising the net profit has not
increased much, so the management should take some steps to reduce its
expenses
 The current ratio is high (2.8:1), so company has not fully utilized cash
liquidity for business development
 The firms capacity to payback debt is declining. This is something that the
management needs to work on.

 The firm needs to utilize the investment of the shareholder more efficiently to
achieve more steady ratios.

5.3 CONCLUSION

According to this research we find that the company’s overall position is good. The
company achieves sufficient profit in the last 4 years. Fixed assets are efficiently
utilised due to which the profits of the company are increasing every year.

The long term solvency of the company is good. The company maintains low
liquidity to achieve high profitability. The company earned sufficient profit during
the period. So, from this study we understood that the company has good liquidity,
solvency and profitability position and has good overall financial performance. The
management of the company has done a good job and must try to maintain the good
performance of the company.

37
Annexure:
Balance sheet of wipro:

This data can be easily copy pasted into a Microsoft Excel sheet

Wipro Previous Years »

Standalone Balance Sheet ------------------- in Rs. Cr. -------------------

Mar 20 Mar 19 Mar 18 Mar 17 Mar 16

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS

Equity Share Capital 1,142.70 1,206.80 904.80 486.10 494.10

Total Share Capital 1,142.70 1,206.80 904.80 486.10 494.10

Reserves and Surplus 45,311.00 48,185.20 41,357.80 46,219.50 40,731.60

Total Reserves and Surplus 45,311.00 48,185.20 41,357.80 46,219.50 40,731.60

Total Shareholders Funds 46,453.70 49,392.00 42,262.60 46,705.60 41,225.70

NON-CURRENT LIABILITIES

Long Term Borrowings 25.10 22.00 72.40 1,146.30 1,146.50

Deferred Tax Liabilities [Net] 0.00 10.40 46.30 139.10 72.20

Other Long Term Liabilities 2,170.50 1,309.50 1,085.30 952.70 869.50

Long Term Provisions 213.30 119.60 168.80 373.30 399.10

Total Non-Current Liabilities 2,408.90 1,461.50 1,372.80 2,611.40 2,487.30

CURRENT LIABILITIES

Short Term Borrowings 5,001.90 5,052.20 4,647.70 5,018.60 5,549.50

Trade Payables 4,542.60 4,765.50 4,176.20 3,818.60 4,362.30

Other Current Liabilities 5,769.10 5,397.90 5,418.60 4,375.80 4,657.50

Short Term Provisions 1,130.20 929.00 793.40 626.90 642.60

Total Current Liabilities 16,443.80 16,144.60 15,035.90 13,839.90 15,211.90

Total Capital And Liabilities 65,306.40 66,998.10 58,671.30 63,156.90 58,924.90

ASSETS

NON-CURRENT ASSETS

Tangible Assets 5,047.30 3,874.20 3,802.60 3,755.50 3,641.80

Intangible Assets 1,592.10 526.80 564.40 606.70 425.70

Capital Work-In-Progress 1,873.50 2,112.70 1,290.60 694.10 325.10

Fixed Assets 8,512.90 6,513.70 5,657.60 5,056.30 4,392.60

Non-Current Investments 7,735.00 8,250.30 5,841.60 5,999.40 5,781.10

Deferred Tax Assets [Net] 433.30 391.00 452.00 235.20 425.40

Long Term Loans And Advances 0.00 0.00 0.00 0.00 195.80

Other Non-Current Assets 2,911.90 4,112.70 3,752.80 3,138.90 2,869.70

Total Non-Current Assets 19,593.10 19,267.70 15,704.00 14,429.80 13,664.60

CURRENT ASSETS

Current Investments 18,963.50 21,998.80 24,841.20 29,146.70 20,419.50

Inventories 174.10 340.30 294.30 355.90 526.20

Trade Receivables 9,257.00 10,648.60 9,502.00 8,129.90 8,398.00

Cash And Cash Equivalents 10,444.00 10,390.20 2,322.00 3,516.60 8,408.80

Short Term Loans And Advances 947.20 0.00 0.00 191.70 0.00

OtherCurrentAssets 5,927.50 4,352.50 6,007.80 7,386.30 7,507.80

Total Current Assets 45,713.30 47,730.40 42,922.20 48,727.10 45,260.30

Total Assets 65,306.40 66,998.10 58,671.30 63,156.90 58,924.90

OTHER ADDITIONAL INFORMATION

CONTINGENT LIABILITIES, COMMITMENTS

Contingent Liabilities 2,693.50 2,618.90 16,696.10 15,729.00 4,385.10

CIF VALUE OF IMPORTS

Raw Materials 0.00 0.00 0.00 0.00 627.20

Stores, Spares And Loose Tools 0.00 0.00 0.00 0.00 5.00

Capital Goods 0.00 0.00 0.00 0.00 15.20

EXPENDITURE IN FOREIGN EXCHANGE

Expenditure In Foreign Currency 22,949.10 23,036.20 20,783.10 21,291.00 20,818.10

REMITTANCES IN FOREIGN CURRENCIES FOR
DIVIDENDS

Dividend Remittance In Foreign Currency - - - - 0.03

EARNINGS IN FOREIGN EXCHANGE

FOB Value Of Goods - - 39,180.70 40,400.00 40,412.40

Other Earnings 46,079.40 44,458.40 - - 73.80

BONUS DETAILS

Bonus Equity Share Capital 1,141.18 1,205.19 885.67 475.82 475.82

NON-CURRENT INVESTMENTS

Non-Current Investments Quoted Market

- - - - -
Value

Non-Current Investments Unquoted Book

7,735.00 8,250.30 5,841.60 5,999.40 5,781.10
Value

CURRENT INVESTMENTS

Current Investments Quoted Market Value 13,546.10 14,201.80 15,289.10 10,467.50 1,167.20

Current Investments Unquoted Book Value 5,417.40 7,797.00 9,552.10 18,679.20 19,252.30

Source : Dion Global Solutions Limited

Profit and loss a/c:

This data can be easily copy pasted into a Microsoft Excel sheet

Wipro Previous Years »

Consolidated Profit & Loss account ------------------- in Rs. Cr. -------------------

Mar 20 Mar 19 Mar 18 Mar 17 Mar 16

12 mths 12 mths 12 mths 12 mths 12 mths

INCOME

Revenue From Operations [Gross] 61,023.20 58,584.50 54,487.10 55,040.20 51,244.00

Revenue From Operations [Net] 61,023.20 58,584.50 54,487.10 55,040.20 51,244.00

Other Operating Revenues 114.40 434.40 0.00 408.20 0.00

Total Operating Revenues 61,137.60 59,018.90 54,487.10 55,448.40 51,244.00

Other Income 2,725.00 2,613.80 2,548.70 2,622.60 2,752.20

Total Revenue 63,862.60 61,632.70 57,035.80 58,071.00 53,996.20

EXPENSES

Cost Of Materials Consumed 0.00 0.00 0.00 0.00 0.20

Purchase Of Stock-In Trade 936.00 1,407.30 1,843.40 2,556.00 3,055.20

Operating And Direct Expenses 13,901.10 14,460.80 0.00 0.00 0.00

Changes In Inventories Of FG,WIP And

202.20 -67.30 50.50 141.10 -60.50
Stock-In Trade

Employee Benefit Expenses 32,657.10 29,977.40 27,222.30 26,808.10 24,553.40

Finance Costs 732.80 737.50 583.00 594.20 558.20

Depreciation And Amortisation Expenses 2,085.50 1,946.70 2,111.70 2,310.00 1,496.10

Other Expenses 1,098.90 1,623.80 14,983.80 14,622.30 12,899.90

Total Expenses 51,613.60 50,086.20 46,794.70 47,031.70 42,502.50

Profit/Loss Before Exceptional,

12,249.00 11,546.50 10,241.10 11,039.30 11,493.70
ExtraOrdinary Items And Tax

Profit/Loss Before Tax 12,249.00 11,546.50 10,241.10 11,039.30 11,493.70

Tax Expenses-Continued Operations

Current Tax 2,432.40 2,364.90 2,633.40 2,650.10 2,575.70

Deferred Tax 47.70 159.40 -394.30 -128.70 -39.10

Total Tax Expenses 2,480.10 2,524.30 2,239.10 2,521.40 2,536.60

Profit/Loss After Tax And Before

9,768.90 9,022.20 8,002.00 8,517.90 8,957.10
ExtraOrdinary Items

Profit/Loss From Continuing Operations 9,768.90 9,022.20 8,002.00 8,517.90 8,957.10

Profit/Loss For The Period 9,768.90 9,022.20 8,002.00 8,517.90 8,957.10

Minority Interest -49.50 -14.20 -0.30 -24.80 -49.20

Share Of Profit/Loss Of Associates 2.90 -4.30 1.10 0.00 0.00

Profit/Loss After MI And Associates 9,722.30 9,003.70 8,002.80 8,493.10 8,907.90

OTHER ADDITIONAL INFORMATION

EARNINGS PER SHARE

Basic EPS (Rs.) 17.00 15.00 17.00 17.00 36.00

Diluted EPS (Rs.) 17.00 15.00 17.00 17.00 36.00

DIVIDEND AND DIVIDEND PERCENTAGE

Equity Share Dividend 686.30 543.40 449.90 724.90 3,549.40

Tax On Dividend 0.00 0.00 92.10 148.50 0.00

Source : Dion Global Solutions Limited

Bibliography:

Websites:

www.wikipedia.com
www.moneycontrol.com
www.linkedin.com
www.economictimes.com
www.wipro.com

Books:

 Business Research Methods, by Dr.P.A. Damodaran

 Accounting for management, by A.Vinod

References:

 Banerjee B., 2007; Financial Policy and Management Accounting, Prentice-

Hall, New Delhi, India
 Balaji Parthasarathy, Globalising Information technology: The Domestic
 Policy Context for India’s Software Production and Export, Indian Institute
of Information Technology, Bangalore, 2004
 Dewett K.K, Verma J.D, Economic Theory, S Chand & Co Ltd., New Delhi-
110055, 1994
 Dossani R, Origin and Growth of Software Industry in India, Asia-Pacific
Research Center, Stanford University, 2005
 http://www.cxotoday.com/-Article by Aarti Shah 4th January 2008