HISTORY

Wipro Ltd (BSE: 507685, NYSE: WIT) is a giant information technology services
corporation headquartered in Bangalore, India. According to the 2008–09 revenue,
Wipro is one of the largest IT services company in India and employs more than
115,900 people worldwide as of September 2010. It has interests varying
from information technology, consumer
care, lighting, engineering and healthcare businesses. It is 9th most valuable brand
in India according to an annual survey conducted by Brand Finance and The
Economic Times in 2010. Azim Premji is the Chairman of the board

Humble Beginnings: Mid-1940s to Early1970s

Western India Vegetable Products Ltd. (Wipro Limited) was founded in 1945 by
M.H. Premji. The company sold vanaspati solidified sunflower oil to retailers, who
sold it in bulk, scooping 50 and 100 grams for customers who brought along their
own containers. In 1947 the same year that India gained independence from British
rule, 32-year-old Premji laid the foundations of a vegetable oil mill at Amalner in
Maharashtra. When Pakistan's prime minister offered him a position as finance
minister, Premji turned it down, citing his loyalty to India and his fledgling cooking
oil business. Little did either man know that later, in the new millennium, Wipro's
value would dwarf Pakistan's gross domestic product. Wipro went public in 1947 for
roughly $30,000.

Premji continued his political career along with his business in India. He became the
first Indian chairman of Bombay Electricity Board and a board member of the
Reserve Bank of India, the State Bank of India and the Life Insurance Corporation
of India. But Premji's untimely demise occurred in 1966, due to a heart attack.
Soon after, his 21-year-old son Azim left his unfinished studies in engineering at
Stanford University in the United States and returned home to India to take over
the business. What used to be a sleepy business run by various members of the
family now became a highly professional one, leaving Azim Premji as the only one
in the family working at Wipro—a characteristic that still would hold true decades
later.

Premji planned to professionalize, diversify and expand his father's business, which
was already valued at about $3 million. He immediately recruited top-notch
managers from the renowned Indian Institute of Management (IIM), where top
graduates are also courted by blue-chip firms in the West. "We were the pioneers in
packaging for the mass market," explains Premji. "We went from bulk packs of
vanaspati to [single-use] consumer packs." The packaging innovation took off, and
the marketing and distribution network expanded into rural areas. At this point, the
company had no plans to go global. By 1971 business nearly doubled from when
Azim Premji took over.

Going High-Tech: Mid-1970s to Late1980s

The company's first departure from its main cooking oil business came about in
1975. Drawing Azim Premji's his engineering background, and at the suggestion of
one of the new IIM recruits, M. Seethapathy Rao, Premji launched Wipro Fluid
Power, an operation that manufactured hydraulic and pneumatic cylinders. And
under the direction of P.S. Pai, Wipro's consumer care division expanded beyond oil
in 1979, establishing operations in soaps, toiletries, and baby care products. Along
with major expansions in distribution, Wipro's consumer care division gained so
much financial strength for the company that the company was able to further
diversify into IT and healthcare instruments.

Wipro would diversify into computers almost as soon as India's computer industry
began to develop in the mid-1970s. At the time, the Indian government was the
largest purchaser of computers sold in India, and was standardized on the Unix-
based platform, which helped Indian companies build a solid reputation in Unix-
based software development. The growing IT industry in India attracted
multinationals such as IBM, Motorola, and Texas Instruments, who took advantage
of India's wealth of low-cost engineering labor. But in 1977 the Indian government
decided to throw out U.S. computer giant IBM over a dispute about investment and
intellectual property, creating what Premji saw as a golden business opportunity.
He quickly set up an electronics unit. But instead of luring ex-IBM employees into
his business, Premji hired managers from a truck maker and a refrigeration
company.

In 1980 Wipro launched information technology services for the domestic market,
setting up in Bangalore a crack-team of R&D and marketing managers, headed by
Ashok Narasimhan. Their professionalism, innovation and insistence on quality were
to make Wipro the No. 1 listed information technology company in the country
within the next 15 years. By 1984 the company diversified into software, which it
would discontinue by 1990, but it led to Wipro's foray into its growth business,
software services. Wipro began manufacturing PCs and workstations in 1985,
quickly building brand recognition and securing the enviable position of
commanding a premium price over the competitions' cheap clones. Wipro
assembled and redistributed hardware for U.S. companies like Nortel, Sun
Microsystems, and Cisco Systems.

India's $80-million market in medical equipment attracted General Electric Co.

(GE), which in 1989 chose Wipro for a joint venture to develop and distribute
ultrasound devices and other medical instruments, especially throughout India and
South Asia. In addition to creating a new business segment for Wipro, the joint
venture instantly secured Wipro's reputation as a software integrator and led to
scores of R&D contracts with major companies, including Cisco Systems, Hitachi,
and Alcatel. Wipro GE came to be the largest exporter of medical systems.

Rapid Growth and Expansion in the 1990s

India's software industry continued to take off throughout the nineties, at a

compounded annual rate of nearly 60 percent for most of the decade. India quickly
became the third-largest supplier of IT labor, and its communications infrastructure
rapidly improved. Part of this growth was driven by a growing number of U.S.
corporations that began to tap into the cheap IT labor market in India, often for 40
percent to 60 percent less than the cost of U.S. labor. As a result, Wipro typically
contracted out teams of engineers to work at U.S.-based companies. As successful
as this model was, it could not be counted on to last, due to mounting competition
and Wipro's growing need to offer more sophisticated technology solutions.

Wipro began to shift its IT business away from costly on-site development projects
in the United States, to more profitable offshore development closer to home. To
help keep its competitive edge, the company replicated the development labs of
some of its major clients, including AT&T, IBM, and Intel Corporation. And while
Wipro continued to offer a range of programming services, including hardware
design, networking, and communications and operating system support—it
continued to diversify into other lines of business. In 1992 the company established
a new lighting business, offering a range of lighting solutions for domestic,
commercial, industrial, and pharmaceutical lab environments. Wipro discarded its
PC brand in 1995 when it formed a joint venture with Acer, a Taiwan-based
computer and peripherals manufacturer and distributor.

By 1998, Bangalore became one of the many IT centers in India, with about 250
high-tech firms, plus about 100 just outside the city's limits. And Wipro became the
center of this Indian "Silicon Valley," as India's second-biggest software exporter.
Both software and hardware businesses generated 57 percent of the company's
sales, and 75 percent of its profits, with software employees numbering over 5,600
of the company's 9,000 total. Still, Premji saw continued value in keeping Wipro's
non-IT businesses, which he was always quick to point out were the best in their
niche markets. The company invested about 25 percent of its advertising budget
into branding for its consumer care and lighting division. The Santoor brand, for
example, grew by 20 percent in 1997. Wipro's power cylinder business grew at a
similar rate as its hardware business, and kept the company well poised to benefit
from any boom in future infrastructure expenditures. In 1998 Wipro started
exporting hydraulic cylinders throughout Southeast Asia. Also, a lot of synergies
existed between the medical systems and IT businesses within Wipro. Wipro GE
emerged as the largest healthcare systems company in South Asia in 1998, and in
that same year, became the top exporter of such systems in India.

Wipro proved to be a nimble and formidable competitor throughout the nineties.

From 1991 to 1997, for example, Wipro went through six corporate restructurings,
keeping the company ready to adapt to the constantly changing technological
landscape. By September of 2000 Wipro's technologies division completed what
may have been the most significant restructuring effort, re-engineering the
division's operations toward four major market sectors: content housing platforms
(computers and Web servers), content transportation (networking media), content
access devices (mobile phones, PCs, etc.), and service providers. And even its Six
Sigma quality initiative, which aimed to reduce the defect rate to virtually nothing,
already led to an eightfold gain over the investments in its first 20 months, which
began in 1997. Wipro projected that it would apply the Six Sigma concept, allowing
a maximum of 3.4 mistakes for every one million opportunities for error, to every
key process by 2002.

Going Global in the 21st Century

Wipro seemed to have survived the effects of the U.S. economic slowdown of 2000,
with massive layoffs and profit warnings, and raced ahead in 2001 amid its own
soaring growth rates and a huge expansion in its operating margins. Given that 60
percent of India's IT-related services and software exports were tied to the U.S.,
Wipro's unscathed emergence was remarkable. By the end of March 2001, the
company's net income hit a record $138 million (up 106 percent from the previous
year), and operating margins grew from 18 to 24 percent that same year. While
revenues from U.S. clients declined to 64 percent from 70 percent, revenues from
Europe climbed from 24 percent to 29 percent, and revenues from Japan did the
same from 5 to 6 percent. With a fleet of 150 Japanese-speaking engineers, and
some 800 engineers dedicated to Japanese customers including Fujitsu, NEC,
Daiwa, Sony, Toshiba, and NTT DoCoMo, Wipro's Japanese business promised to
grow along with other continued investments in a diversified customer base. Wipro
decided to set up an Asia-Pacific regional base in Singapore in 2001. By this time,
Wipro had a total of 209 active clients, the top five of whom were: fiber-optic
network equipment major Nortel Networks; British gas transport firm Transco; U.S.
conglomerate GE; telecom equipment manufacturer Lucent Technologies; and
French telecom equipment maker Alcatel.

Along with diversifying its customer base, Wipro set out to expand and deepen its
IT service offerings and become a global tech powerhouse that directly competes
with giants such as IBM Global Consulting, Accenture, and Electronic Data Service.
Even though Wipro came out of 2000 quite well, India's IT industry quickly became
flanked with growing competition from countries such as Ireland, China, Vietnam,
and the Philippines. And even though 60 percent of Indian software exports were
absorbed by businesses in the U.S. in 1999, that accounted for only 2 percent of
the global total.

Wipro decided to go beyond the unglamorous back-office code-writing on contract,

and pursue even more high-profile, high-paying projects that involved e-business
development, new software products, and end-to-end business/system consulting.
Instead of doing small portions of large IT software solutions, Wipro would set out
to develop comprehensive, end-to-end solutions, which included both software
services and hardware, and often involved outsourcing the simpler code work to
other countries. For example, in August of 2000, Wipro launched a "Portal-in-a-
Box," which was a fixed-price, end-to-end solution to help businesses create a sales
presence on the Web. Wipro's new "upstream" strategy would not only help stave
off the growing competition, but also enable Wipro to continue its growth, and keep
its staff immune from the temptation to go West and start up their own software
companies. Wipro also continued to aggressively refocus on offshore projects and
expand its efforts in the domestic market.

Wipro has come a long way from its simple sunflower oil business. At the start of
the new millennium, Wipro continued to prove itself a pioneer in three main
businesses—consumer care and lighting, healthcare technology services, and
information technology—altogether encompassing a broad range of high-quality
products and services. With its solid reputation in these businesses, deep ties with
major world companies, and newly opened offices including the United Kingdom,
Germany, Paris, Singapore, the Middle East, and the United States, Wipro promised
to quickly become a true multinational corporation.

Principal Subsidiaries:Wipro Inc. (United States); Enthink Inc. (United States);

Wipro Japan KK (Japan); Wipro Welfare Limited; Wipro Prosper Limited; Wipro
Trademarks Holding Limited.

Principal Divisions:Information Technology; Consumer Care & Lighting;

Healthcare Technology Services.

Principal Competitors:Accenture; Booz-Allen; Cambridge Technology; Cognizant

Technology Solutions; Compaq; Computer Sciences; Deloitte Touche Tohmatsu;
EDS; Ernst & Young; GE; Getronics; Hewlett-Packard; Hindustan Lever; IBM;
Infosys Technologies; Johnson & Johnson; McKinsey & Company; KPMG; Perot
Systems; Philips Electronics; PricewaterhouseCoopers; Procter & Gamble; Sapient;
Satyam; Siemens; Silverline Technologies; Tata Enterprises; Unilever; Zenith.

Chronology

Key Dates:
1945: Wipro Limited is incorporated.
1947: An oil mill and hydrogenated cooking medium plant is built; Wipro goes
public in India, for roughly $30,000.
1966: Founder M.H. Hasham Premji dies.
1968: Founder's son, Azim Hasham Premji assumes leadership of company.
1975: Wipro begins to manufacture hydraulic and pneumatic cylinders.
1980: Wipro employs information technology services.
1985: Wipro begins to manufacture toilet soaps, PCs, and dot-matrix printers.
1989: General Electric and Wipro create a joint venture for medical systems.
1990: Product software business is discontinued; software services begin.
1992: Lighting business is established.
1999: Wipro's software business receives prestigious SEI Level 5 Certification;
company restructures to address the Internet market.
2000: Wipro debuts on the New York Stock Exchange.
OWNERSHIP PATTERN:

Azim H. Premji
CHAIRMAN

Executive Directors

Girish S. Suresh C. Suresh Vaswani

Paranjpe Senapaty

Independent Directors

Ashok S. B. C. Prabhakar Dr. Henning Jagdish N.

Ganguly Kagermann Sheth

N. Vaghul P. M. Sinha William Arthur Shyam Saran

Owens
Shareholding pattern - Wipro Ltd.
Holder's Name No of Shares % Share Holding
Promoters 1945953763 79.36%
General Public 136466408 5.57%
Foreign Institutions 129418021 5.28%
Other Companies 73285661 2.99%
Financial Institutions 71406388 2.91%
Others 56814529 2.32%
Foreign NRI 23224430 0.95%
Banks Mutual Funds 15054436 0.61%
Directors 318694 0.01%
Foreign Industries 53471 0.00%
starts with history of the co.***
ownership pattern***
product line
then those financial ratios
corp governance
CSR
future prospects
PRODUCT LINE

Aerospace Insurance

Wipro’s cutting edge technologies in the Is part of the IT and business Consulting
aviation sector and have been at the Services that enable insurers to stay
forefront of product innovation ahead of competition

Automotive Manufacturing

Wipro provides solutions that can power Wipro provides comprehensive

the automotive sector with the latest
technologies
Banking
Have proactively invested in creating
banking solutions that help banks create
new business opportunities, tap the
existing ones more efficiently and
address the new challenges on the
horizon.
manufacturing enterprise solutions
Media
Wipro’s integrated solutions portfolio,
partner ecosystem and decades of
experience have transformed content
value chain of our media customers
globally.
Medical Devices

Business & Consumer Services end-to-end services from

Full service HRO, B2B, Manpower/
Staffing/ Recruitment services
Communication Service Providers
Wipro has the unique distinction of being
unilaterally strong on the Network,
Devices, IT and Service Platform
Computer Peripherals
Wipro brings forth this unmatched
combination and the passion to ensure
you win with cutting edge computer
peripherals engineering solutions
Computer Software
Wipro’s solutions include consulting,
product engineering, IT, BPO and
conceptualization to product design and
development to post market support.
Mobile Devices
Complete mobile phone development and
testing programs across leading
platforms
Pharmaceutical & Life Sciences
Wipro address all your IT, BPO and
infrastructure challenges.
Public Infrastructure
ECTI) team includes domain consultants,
industry specific subject matter experts,
dedicated process and IT consultants and
solution architects
Retail
infrastructure services.
Computing
Over two decades of experience in
building platforms for leading computer
manufacturers
Consumer Electronics
Wipro’s solutions focus on promoting
flexibility, reducing development costs
and accelerating the product
introduction process of CE devices.
Consumer Packaged Goods
To help develop goods which will
redefine the tastes and preferences of
consumers.
Energy
Wipro helps Oil and Gas firms address
complexity through simple solutions
Government
Wipro’s flexible and robust delivery
models will assist government agencies
with budget reductions mandated by
government leaders
Healthcare
providers, healthcare distribution,
healthcare services, e-health and
government-funded programs
Hospitality & Leisure
Futuristic business solutions and smart
technology packages that create the
perfect holiday experience for customers
Wipro Retail offerings include Consulting,
Application Development and
Maintenance, and Process Improvement.
Securities & Capital Markets
To address business priorities like
operational efficiency, cost optimization,
revenue enhancement and regulatory
compliance
Semiconductors
20 years in delivering semiconductor
services and solutions
Storage
Wipro’s PULSE framework for storage
product engineering offers end-to-end
services for developing and sustaining
new products globally
Telecom
streamline operations, minimize capital
infrastructure, offer new services and
remain competitive through innovative
solutions.
Telecom Equipment
Helping vendors gain more revenues
through product transformation initiative
and innovative solutions
Transportation
Wipro is helping the industry leaders
realize benefits from numerous high-
performance endeavors in Travel and
Logistics
Utilities
Wipro helps enhance profitability of utility
firms through solutions which have
 immediate impact on the operational cost
and through solutions having positive
impact on revenues by improving
customer satisfaction.

SERVICES

Business Technology Services Testing Services

Bridge between IT applications and Ensure that your ultimate output remains final.
business transformation.

Product Engineering Services

Enterprise Application Services
Define, manage, study and execute ideas that
To help transform a business with the matter.
right process enablers.

Enterprise Technology Integration

Infrastructure Management
Services Adapt to the evolving technology landscape.

To help you step up the pace in your

technology innovation.
Total Outsourcing

To help companies achieve maximum value

Business Process Outsourcing through managed requirements.

Bring flexibility and cost effectiveness

into your business.

Consulting

Think ahead with the right strategic

insights.
 BALANCE SHEET (2006-2010)

Mar Mar
` in Cr. Mar 2010 Mar 2009 Mar 2008
2007 2006
SOURCES OF FUNDS :

Share Capital 293.40 292.80 292.30 291.80 285.20

13,337.1 11,403.1
Reserves & Surplus 17,950.90 9,304.20 6,320.20
0 0
Total Shareholders 13,629.9 11,695.4
18,244.30 9,596.00 6,605.40
Funds 0 0

Secured Loans 211.90 185.80 207.20 148.90 45.10

Unsecured Loans 6,039.40 5,503.40 4,277.80 233.80 30.70
Total Debt 6,251.30 5,689.20 4,485.00 382.70 75.80
Minority Interest 43.70 23.60 11.60 3.00 0.00

19,342.7 16,192.0
Total Liabilities 24,539.30 9,981.70 6,681.20
0 0

APPLICATION OF
FUNDS :

13,187.4
Gross Block 13,959.90 9,848.90 4,676.40 2,834.40
0
Less: Accum.
4,231.40 3,634.20 2,806.70 1,899.30 1,291.10
Depreciation
Net Block 9,728.50 9,553.20 7,042.20 2,777.10 1,543.30
Capital Work in
1,235.50 1,355.20 1,337.00 1,019.10 625.00
Progress

Investments 3,406.00 1,809.60 1,602.20 3,324.90 3,081.20

Current Assets, Loans

& Advances
Inventories 792.60 758.70 666.40 415.00 206.50
Sundry Debtors 5,115.00 5,037.00 4,045.30 2,900.70 2,127.20
Cash and Bank
6,487.80 4,911.70 3,927.00 1,982.20 885.80
Balance
Loans and Advances 5,935.30 4,504.50 3,098.60 1,817.60 1,347.60
Less: Current Liab. &
Prov.
Current Liabilities 5,826.60 6,725.70 4,073.70 3,451.60 1,866.60
Provisions 2,334.80 1,861.50 1,453.00 803.30 1,268.80

Net Current Assets 10,169.30 6,624.70 6,210.60 2,860.60 1,431.70

Miscellaneous
0.00 0.00 0.00 0.00 0.00
Expenses not w/o

19,342.7 16,192.0
Total Assets 24,539.30 9,981.70 6,681.20
0 0

Contingent Liabilities 1,590.90 917.70 472.50 318.40 390.50

 Profit loss account (Rs crore)
` in Cr. Mar 2010 Mar 2009 Mar 2008 Mar 2007 Mar 2006
INCOME :
Sales Turnover 27,297.20 25,805.00 20,145.10 15,133.00 10,680.50
Other Income 509.20 563.90 459.70 296.30 153.60
Stock
32.20 94.30 59.20 74.90 29.60
Adjustments
Total Income 27,838.60 26,463.20 20,664.00 15,504.20 10,863.70

EXPENDITURE :
Raw Materials 5,069.80 4,671.30 3,685.50 2,393.10 1,511.50
Excise Duty 84.30 105.50 165.50 134.80 77.50
Power & Fuel Cost 179.70 186.30 153.20 106.20 89.00
Other
Manufacturing 2,307.70 2,030.00 1,880.00 1,252.50 890.00
Expenses
Employee Cost 10,773.00 10,747.60 8,343.00 6,239.70 4,384.70
Selling and
Administration 2,396.50 2,296.20 1,813.60 1,392.90 1,043.30
Expenses
Miscellaneous
640.60 980.30 211.40 275.90 176.60
Expenses
Less:
Preoperative
0.00 0.00 0.00 0.00 0.00
Expenditure
Capitalised
Profit before
Interest,
6,387.00 5,446.00 4,411.80 3,709.10 2,691.10
Depreciation &
Tax
Interest &
123.20 240.00 169.00 12.40 3.50
Financial Charges
Profit before
Depreciation & 6,263.80 5,206.00 4,242.80 3,696.70 2,687.60
Tax
Depreciation 754.30 686.40 535.80 397.90 309.70
Minority Interest
0.00 0.00 0.00 0.00 0.00
before PAT
Profit Before Tax 5,509.50 4,519.60 3,707.00 3,298.80 2,377.90
Tax 916.30 646.00 455.00 386.80 339.10
Profit After Tax 4,593.20 3,873.60 3,252.00 2,912.00 2,038.80
Minority Interest 18.50 9.90 2.40 -0.60 0.10
after PAT
Profit/Loss of
Associate 56.30 36.20 33.30 29.50 28.80
Company
Profit after
Minority Interest
4,631.00 3,899.90 3,282.90 2,942.10 2,067.50
& P/L of Assoc.
Co.

Adjustment below
0.00 0.00 0.00 0.00 -0.10
Net Profit
P & L Balance
0.00 0.00 0.00 0.00 0.00
brought forward
Appropriations 4,631.00 3,899.90 3,282.90 2,942.10 2,067.40
P & L Bal. carried
0.00 0.00 0.00 0.00 0.00
down

Equity Dividend 880.90 586.00 876.50 869.70 712.90

Preference
0.00 0.00 0.00 0.00 0.00
Dividend
Corporate
128.30 99.60 148.90 126.80 100.00
Dividend Tax
Equity Dividend
300.00 200.00 300.00 300.00 250.00
(%)

Earning Per Share

30.69 25.96 21.44 19.30 13.80
(Rs.)
Book Value 124.35 93.09 80.00 65.77 46.32

Extraordinary
25.41 58.20 68.25 50.61 19.77
Items
 Cash flow (Rs crore)

Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Profit before tax 5,688.80 3,547.90 3,469.70 3,176.20 2,340.43

Net cash flow-operating activity 4,477.40 4,344.50 715.90 2,674.60 1,912.25

Net cash used in investing activity -3,064.60 -3,662.70 -1,127.50 -1,881.90 -1,694.42

Net cash used in fin. activity -96.20 -70.70 2,290.90 238.50 59.80

Net inc/dec in cash and equivalent 1,316.60 611.10 1,879.30 1,031.20 277.63

Cash and equivalent begin of year 4,347.70 3,798.10 1,852.80 818.00 545.38

Cash and equivalent end of year 5,664.30 4,409.20 3,732.10 1,849.20 823.00

Key Financial Ratios of Wipro ------------------- in Rs. Cr. -------------------

Mar Mar Mar Mar

Mar '06
'07 '08 '09 '10

Investment Valuation Ratios

Face Value 2.00 2.00 2.00 2.00 2.00
Dividend Per Share 5.00 6.00 6.00 4.00 6.00
Operating Profit Per Share (Rs) 17.42 22.31 25.42 32.48 37.47
Net Operating Profit Per Share
71.73 93.79 119.69 146.81 156.12
(Rs)
Free Reserves Per Share (Rs) 42.65 -- -- 81.06 116.54
Bonus in Equity Capital 98.08 95.84 95.68 95.51 95.32
Profitability Ratios
Operating Profit Margin(%) 24.28 23.78 21.24 22.12 24.00
Profit Before Interest And Tax
21.19 20.71 18.29 19.22 21.07
Margin(%)
Gross Profit Margin(%) 25.08 21.15 18.63 19.64 21.47
Cash Profit Margin(%) 22.36 22.91 19.74 20.27 21.56
Adjusted Cash Margin(%) 22.32 22.91 19.74 20.27 21.56
Net Profit Margin(%) 19.53 20.34 17.19 13.53 20.97
Adjusted Net Profit Margin(%) 19.49 20.34 17.19 13.53 20.97
Return On Capital Employed(%) 35.58 33.30 23.23 26.77 23.06
Return On Net Worth(%) 31.43 30.50 26.51 23.76 27.68
Adjusted Return on Net
31.39 30.50 26.51 31.34 25.19
Worth(%)
Return on Assets Excluding
21.80 63.86 79.05 85.42 120.49
Revaluations
Return on Assets Including
21.80 63.86 79.05 85.42 120.49
Revaluations
Return on Long Term Funds(%) 35.87 33.31 23.32 37.17 30.12
Liquidity And Solvency Ratios
Current Ratio 1.42 1.68 2.54 1.10 1.34
Quick Ratio 1.40 1.61 2.44 1.76 2.29
Debt Equity Ratio 0.01 0.03 0.33 0.40 0.31
Long Term Debt Equity Ratio -- 0.03 0.33 0.01 0.01
Debt Coverage Ratios
Interest Cover 735.79 442.14 30.71 23.85 49.41
Total Debt to Owners Fund 0.01 0.03 0.33 0.40 0.31
Financial Charges Coverage
829.08 492.11 34.61 26.56 54.76
Ratio
Financial Charges Coverage
739.19 445.71 31.13 18.82 51.53
Ratio Post Tax
Management Efficiency Ratios
Inventory Turnover Ratio 69.56 57.23 39.41 56.15 45.40
Debtors Turnover Ratio 6.06 6.01 5.62 5.32 4.98
Investments Turnover Ratio 78.23 57.23 39.41 56.15 45.40
Fixed Assets Turnover Ratio 7.16 8.31 7.81 3.85 3.47
Total Assets Turnover Ratio 1.58 1.43 1.14 1.24 0.99
Asset Turnover Ratio 4.35 8.31 7.81 3.85 3.47
Average Raw Material Holding 28.45 -- -- 66.55 53.39
Average Finished Goods Held 3.78 -- -- 4.13 6.19
Number of Days In Working
45.35 67.73 150.56 102.81 150.91
Capital
Profit & Loss Account Ratios
Material Cost Composition 13.60 14.43 17.94 15.98 18.06
Imported Composition of Raw
62.12 -- -- 45.00 36.83
Materials Consumed
Selling Distribution Cost
1.67 -- 3.04 1.43 1.64
Composition
Expenses as Composition of
69.25 80.05 73.66 77.28 73.26
Total Sales
Cash Flow Indicator Ratios
Dividend Payout Ratio Net Profit 40.23 35.20 33.47 23.05 20.60
Dividend Payout Ratio Cash 35.14 31.24 29.13 19.54 18.42
Profit
Earning Retention Ratio 59.68 64.80 66.53 82.53 77.36
Cash Earning Retention Ratio 64.79 68.76 70.87 84.62 79.97
AdjustedCash Flow Times 0.02 0.07 1.09 1.13 1.10

Mar Mar Mar Mar

Mar '06
'07 '08 '09 '10

Earnings Per Share 14.17 19.48 20.96 20.30 33.36

Book Value 45.03 63.86 79.05 85.42 120.49
 CACULATED FINANCIAL RATIOS

1. RETURN ON CAPITAL INVESTED

Return on capital employed establishes the relationship between the

profit and the capital employed. It indicates the percentage of return on
capital employed in the business and it can be used to show the overall
profitability and efficiency of the business.

Operating Net Profit X 100 2,483.90 3,254.50 3,715.60 4,758.70 5,501.50

Capital Employed 3,459.20 4,348.70 4,500.10 6,895.30 8,966.50

Return on capital employed ROCE= 71.81% 74.84% 82.58% 69.01% 61.36%

Return On Capital Employed

90.00%

80.00%

70.00%

60.00%

50.00% ROCE

40.00%

30.00%

20.00%

10.00%

0.00%
2006 2007 2008 2009 2010
 2. RETURN ON PROPRIETOR’S FUNDS

It is the ratio of net profit to share holder's investment. It is the

relationship between net profit (after interest and tax) and share
holder's/proprietor's fund. The inter firm comparison of this ratio
determines whether the investments in the firm are attractive or not as
the investors would like to invest only where the return is higher

Profit after tax 2,054.32 2,842.10 3,063.30 2,973.80 4,898.00

Proprietor's 6,605.40 9,596.00 11,695.40 13,629.90 18,244.30
funds
ROPF 0.311006 0.296175 0.261923 0.218182 0.268467

Return on proprietor's funds

0.35

0.3

0.25

0.2 Return on
proprietor's
funds
0.15

0.1

0.05

0
2006 2007 2008 2009 2010
 3. PROPRIETARY RATIO

This is a variant of the debt-to-equity ratio. It is also known as equity

ratio or net worth to total assets ratio. This ratio relates the
shareholder's funds to total assets. Proprietary / Equity ratio indicates
the long-term or future solvency position of the business.

6,427.94 9,320.40 11,610.70 12,515.00 17,692.20

Proprietor's Fund
Total Assets 6,478.11 9,558.40 15,433.10 17,528.90 23,222.40

Proprietary Ratio X 99.22% 97.51% 75.23% 71.40% 76.16%

100

Proprietary Ratio
120.00%

100.00%

80.00%
Proprietary Ratio
60.00%

40.00%

20.00%

0.00%
2006 2007 2008 2009 2010
 4. QUICK ASSET RATIO

The Acid-test or quick ratio or liquid ratio measures the ability of a

company to use its near cash or quick assets to extinguish or retire
its current liabilities immediately. Quick assets include those current
assets that presumably can be quickly converted to cash at close to
their book values.

Quick assets 1,225.20 2,445.60 5,544.20 5,866.00 9,376.70

Current Liabilities 1,866.60 3,451.60 4,073.70 6,725.70 5,826.60
Quick Asset Ratio 0.65638 0.70854 1.36097 0.87217 1.60929

Quick Asset Ratio

1.8

1.6

1.4

1.2

1 Quick Asset Ratio

0.8

0.6

0.4

0.2

0
2006 2007 2008 2009 2010
5. STOCK WORKING CAPITAL RATIO

Working Capital 1,288.29 2,574.30 7,315.80 6,142.20 9,608.50

Closing Stock 823 1,849.20 3,732.10 4,409.20 5,664.30
Stock Working capital Ratio 63.88% 71.83% 51.01% 71.78% 58.95%
6. CURRENT RATIOS

Current ratio may be defined as the relationship between current assets and
current liabilities. This ratio is also known as "working capital ratio". It is a
measure of general liquidity and is most widely used to make the analysis
for short term financial position or liquidity of a firm. It is calculated by
dividing the total of the current assets by total of the current liabilities.

1,431.70 2,860.60 6,210.60 6,624.70 10,169.30

Current Assets
1,866.60 3,451.60 4,073.70 6,725.70 5,826.60
Current Liabilities
0.76701 0.828775 1.52456 0.984983 1.745323
Current Ratio

Series 1
2
1.8
1.6
1.4
1.2
Series 1
1
0.8
0.6
0.4
0.2
0
2006 2007 2008 2009 2010
7. DEBT EQUITY RATIO

Debt-to-Equity ratio indicates the relationship between the external equities

or outsiders funds and the internal equities or shareholders funds. The
purpose is to get an idea of the cushion available to outsiders on the
liquidation of the firm. The owners want to do the business with maximum of
outsider's funds in order to take lesser risk of their investment and to
increase their earnings (per share) by paying a lower fixed rate of interest to
outsiders.

Total Debt
6,251.30 5,689.20 4,485.00 382.7 75.8
Total Shareholders Funds 18,244.30 13,629.90 11,695.40 9,596.00 6,605.40
Debt Equity Ratio 0.34 0.42 0.38 0.04 0.01

Debt Equity Ratio

0.45

0.4

0.35

0.3

0.25 Debt Equity Ratio

0.2

0.15

0.1

0.05

0
2006 2007 2008 2009 2010
8. OPERATING NET PROFIT RATIO

This ratio is calculated to indicate the profit or return on the capital

employed in the business. It is expressed as a percentage.

Operating Profit 2,483.89 3,254.50 3,715.60 4,758.70 5,501.50

10,264.0 13,758.5 17,658.1 21,612.8 23,006.3
Sales Turnover 9 0 0 0 0
Operating Net Profit
Ratio 24.19% 23.65% 21.04% 22.02% 23.91%

Operating Net Profit Ratio

25.00%

24.00%

23.00%
Operating
Net Profit
22.00% Ratio

21.00%

20.00%

19.00%
2006 2007 2008 2009 2010
9. NET PROFIT

PBT 2,340.43 3,176.20 3,469.70 3,547.90 5,688.80

Sales 10,680.50 15,133.00 20,145.10 25,805.00 27,297.20
Net Profit 21.91311 20.98857 17.22354 13.74889 20.84023

Net Profit Ratio

25

20

15
Net Profit Ratio

10

0
2006 2007 2008 2009 2010
10. EARNINGS PER SHARE (EPS) RATIO:

Price earnings ratio (P/E ratio) is the ratio between market price per equity
share and earning per share. The ratio is calculated to make an estimate of
appreciation in the value of a share of a company and is widely used by
investors to decide whether or not to buy shares in a particular company.
Price earnings ratio helps the investor in deciding whether to buy or not to
buy the shares of a particular company at a particular market price.

Shares
PAT 142.58 145.90 146.15 146.50 146.82
EPS 2,054.32 2,842.10 3,063.30 2,973.80 4,898.00
14.40866 19.47978 20.95997 20.29898 33.36058

Earnings Per Share

40

35

30

25
EPS
20

15

10

0
2006 2007 2008 2009 2010
11. DIVIDIND PAY OUT RATIO

The payout ratio and the retained earning ratio are the indicators of the
amount of earnings that have been ploughed back in the business. The lower
the payout ratio, the higher will be the amount of earnings ploughed back in
the business and vice versa. A lower payout ratio or higher retained earnings
ratio means a stronger financial position of the company.

Dividind per ES 712.88 873.7 876.5 586 880.9

EPS 14.17 19.48 20.96 20.3 33.36
Dividind pay out
ratio 5030.91 4485.113 4181.775 2886.7 2640.588

Dividind Pay Out Ratio

6000

5000

4000
Dividind Pay Out Ratio
3000

2000

1000

0
2006 2007 2008 2009 2010
12. WAGES TO SALES RATIO

Wages 4,279.03 5,768.20 7,409.10 9,249.80 9,062.80

10,264.0 13,758.5 17,658.1 21,612.8 23,006.3
Sales 9 0 0 0 0
Wages to sales 0.41689 0.41924
Ratio 3 6 0.41958 0.42797 0.39392

Wages to Sales Ratio

0.44

0.43

0.42
Wages to
0.41 Sales
Ratio
0.4

0.39

0.38

0.37
2006 2007 2008 2009 2010
2.

Profit & Loss account of Wipro ------------------- in Rs. Cr. -------------------

Mar '06 Mar '07 Mar '08 Mar '09 Mar '1

12 mths 12 mths 12 mths 12 mths 12 mths

Income
Sales Turnover 10,264.09 13,758.50 17,658.10 21,612.80 23,006.30
Excise Duty 36.97 74.60 165.50 105.50 84.30
Net Sales 10,227.12 13,683.90 17,492.60 21,507.30 22,922.00
Other Income 151.92 288.70 326.90 -480.40 875.30
Stock Adjustments 24.21 86.30 187.00 -3.80 111.00
Total Income 10,403.25 14,058.90 18,006.50 21,023.10 23,908.30
Expenditure
Raw Materials 1,391.88 1,975.30 3,139.30 3,438.80 4,140.40
Power & Fuel Cost 86.46 0.00 0.00 154.00 141.40
Employee Cost 4,279.03 5,768.20 7,409.10 9,249.80 9,062.80
Other Manufacturing
934.24 120.50 299.80 1,687.80 2,071.80
Expenses
Selling and Admin
801.07 27.60 557.80 1,523.00 1,475.10
Expenses
Miscellaneous Expenses 274.76 2,624.10 2,558.00 691.40 640.00
Preoperative Exp
0.00 0.00 0.00 0.00 0.00
Capitalised
Total Expenses 7,767.44 10,515.70 13,964.00 16,744.80 17,531.50
Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Operating Profit 2,483.89 3,254.50 3,715.60 4,758.70 5,501.50

PBDIT 2,635.81 3,543.20 4,042.50 4,278.30 6,376.80
Interest 3.13 7.20 116.80 196.80 108.40
PBDT 2,632.68 3,536.00 3,925.70 4,081.50 6,268.40
Depreciation 292.26 359.80 456.00 533.60 579.60
Other Written Off 0.00 0.00 0.00 0.00 0.00
Profit Before Tax 2,340.42 3,176.20 3,469.70 3,547.90 5,688.80
Extra-ordinary items -33.85 0.00 0.00 0.00 0.00
PBT (Post Extra-ord 2,306.57 3,176.20 3,469.70 3,547.90 5,688.80
Items)
Tax 286.10 334.10 406.40 574.10 790.80
Reported Net Profit 2,020.48 2,842.10 3,063.30 2,973.80 4,898.00
Total Value Addition 6,375.55 8,540.40 10,824.70 13,306.00 13,391.10
Preference Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend 712.88 873.70 876.50 586.00 880.90
Corporate Dividend Tax 99.98 126.80 148.90 99.60 128.30
Per share data (annualised)
Shares in issue (lakhs) 14,257.54 14,590.00 14,615.00 14,649.81 14,682.11
Earning Per Share
14.17 19.48 20.96 20.30 33.36
(Rs)
Equity Dividend (%) 250.00 300.00 300.00 200.00 300.00
Book Value (Rs) 45.03 63.86 79.05 85.42 120.49
Corporate Social Responsibility at Wipro

Reaching out to create new opportunities

Our commitment has never been limited to the IT initiatives we execute in our daily
functions at Wipro. Over the years, we have developed a clear road to realize our
vision of taking our success to other sections of society who struggle to care for their
own basic needs.

Wipro Cares
Realities keep changing in an unpredictable world. In the midst of this there arise
crises that need to be immediately attended to and through Wipro Cares, we strive
hard to address them. From community relief and rehabilitation in times of disasters to
education opportunities, health and wellness programs for the needy, we make sure
that our social initiatives touch every level of society that needs our help. Our Wipro
Care program is executed with the help of our employees who are free to volunteer
their services and other recognized voluntary organizations who make sure the goal is
never out of focus.
Wipro Applying Thought in Schools
Education is recognized as a key investment in Wipro, not only within, but also marked
and leveraged as a social initiative. Through the Applying Thought in Schools initiative,
we take our tagline seriously enough to build a network of social organizations
committed to education reform. Education quality, research and interventions are
clearly defined that our program explores.
Eco Eye
Our commitment to the ecology around us is as strong as our every endeavor. We
believe that the future lies in sustainable solutions that will never interfere with our
environment, an integral part of our social initiatives. With the formation of Eco Eye,
we are now a business that incorporates better ecological balance in every project we
execute.

Diversity

Wipro values diversity and we imbibe the cultures of the geography we operate in.
This sense of inclusiveness nurtures a culture of greater creativity and innovation.

Diversity is a mantra that Wipro practices and allows us to communicate and compete
in various global markets. Our initiatives are a reflection of this.

People with Disabilities

Wipro is continuously focused on creating a truly inclusive workplace to
accommodate People with Disabilities (PwD). We help differently abled individuals to
leverage their talent and build their careers at Wipro. Here's a look at our initiatives:

Accessible Physical Infrastructure - We have benchmarked our campuses with

global guidelines for barrier-free access and are making changes to our facilities.
We have included the UN standards in determining that our infrastructure is
accessible for the physically challenged.

People Policies - Our people policies were audited by experts to encourage

inclusivity and to communicate relevant information to people with disabilities. In
all, 56 policies were audited and many were modified to provide reasonable
accommodation.

IS - We have adapted IS applications to connect with typical software used in the

organization so that IT resources and information are made easily available to the
physically challenged. We are transforming our applications, websites and career
portals based on the WCAG 2.0 guidelines to provide complete accessibility to
persons with special needs.

Talent Transformation - We have trained our trainers and library staff to be

inclusive in instructor led programs, streamlined our administrative processes to
enable specific accommodation where required, and developed curriculum that
would help induct and assimilate people with disabilities into our midst.

Talent Acquisition Process - We have streamlined our processes to be more

inclusive as we interface with prospective employees with disabilities.

REACH
REACH is a Wipro program that assists the underprivileged youth in India to educate
and rise above their status to make a mark in society. The main features of this
program are:
It helps youngsters acquire employment in areas that match their respective
talent

Wipro connects with colleges to identify and recruit capable youngsters who can
make a difference to the organization

We guide and encourage them to pursue higher education that would justify
their talent

REACH is a program in progress and we are constantly upgrading this to create a

better future for thousands of underprivileged who, with a better education, can
contribute constructively to society.
Wipro Center for Employment (WCE)

The purpose of WCE is to provide training to students to make them employable in a

set of industries through courses which are geared to improve their behavioral skills,
functional knowledge and competencies. The course architecture includes:
A foundation course in soft skills, English language and basics of IT to build life
skills and strengthen confidence

A second layer to build functional skills in chosen industries

This course will prepare students for entry level jobs primarily in the service
industries.

Nationality

Wipro is a global company and this is reflected in our diverse workforce across
geographies. We promote an inclusive environment and recognize the differences in
backgrounds, knowledge, experiences and potential of people from various cultures. A
diverse corporate culture stimulates productive creativity and innovation and this is
what we believe in when we enable talent transformation at Wipro.

Wipro's diversity and inclusiveness initiative aims to "be a truly global employer with a
local touch, gaining worldwide acceptance and penetration." The initiative's three main
goals are:

Attract and recruit top talent primarily from the local population

Engage employees to truly embrace the Diversity and Inclusiveness Policy as an

integral part of how they work together as global teams

Develop the capabilities of employees to partner effectively with clients

from diverse nationalities

Gender

Women of Wipro (WoW) was an initiative launched, as part of the Wipro Diversity
Council, in 2008. WoW aims to bring together women executives across business
units and locations in Wipro who have the passion for extraordinary personal and
social transformation, working together for better causes and common goals.

Our faith in the capabilities of the women who work in our organization has created not
only a local impact but has also reflected across our locations globally. Some of the
major initiatives undertaken by WoW include:

WoW microsite - Channel W, that includes a forum for women employees to blog,
chat, and post relevant comments on discussion boards along with articles

Speaker series/networking sessions with women leaders across the global

industry

Health and safety - self defense workshops and 'Fit for Life' sessions

Flexible policies to enable work life balance including crèches across locations

Mentoring for success - high performing women mentored by top management

Future Prospects
Innovation was defined at Wipro as "the implementation of a new idea resulting into a
marketable product or service." According to Wipro sources, an idea would be
considered as a good innovation only when the company could get benefits out of it.

So, in Wipro, commercial viability of an idea is also given importance along with
innovation. Continuous sustainable innovations has always been a trend at Wipro and
continue to be. The constant endeavor to innovate at Wipro has been recognized by
many below mentioned awards in 2010, and these will only increase in the future .

Awards & Recognition

Wipro is one of the most recognized and respected companies worldwide and has
been awarded with innumerable corporate awards for the various milestones and
innovations achieved.

2010

Wipro featured in FinTech rankings on Top 25 Enterprise companies published by

the American Banker and Bank Technology News, and IDC Financial Insights.

Wipro's Identity and Access Management (IDAM) Solution - IDAM-in-a-Rack has

won the Global Product Excellence Award 2010 in the Identity Management
Solution Category .

Partner of the Year Award for Systems Integration, Applications and Middleware
from Oracle.

Outstanding Partner of the Year Award from Radware .

Leadership Award in the Solution Partners Category by RSA, India.

Indus Towers Customer Award for Excellence in Delivery- Wipro was the only IT
partner to receive an award from Indus.

Bharat Gaurav Award, 2010 for Nagarajan A., VP, Business Operations, Wipro
Arabia for excellence in keeping Indian Flag high in other countries.

Wipro receives Most Outstanding Alliance Partner of the Year Award in Asia-
Pacific and Japan from HP. This is the third time in the last five years that Wipro
Technologies has been recognized by HP Software and Solutions.

Wipro Infotech is the Indian IT Company of the Year 2009. Springboard Research
chooses Wipro for impressive revenue growth, client acquisitions and push
towards Green technologies.

Wipro’s CIGMA wins NASSCOM Award for Process Innovation as CIGMA enables
customers to manage IT outsourcing engagements through business linked KPI’s
rather than traditional IT SLA’s. CIGMA integrates cutting edge technology and
process elements to deliver stability of the client’s business platform at a lower
cost.

Wipro receives 2010 Global Impact Award from Metro Atlanta Chamber of
Commerce for success in job creation and positive impact on Atlanta's economy in
2009.