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Bharath Reddy Marikanti Akhil S. Movva Nitish Menda Mounika Jai Gautam Nataraj Kadali

INTRODUCTION OF COMPANY Wipro started in 1945 with the setting up of an oil factory in Amalner a small town in Maharashtra in Jalgaon District. The product Sunflower Vanaspati and 787 laundry soap (largely made from a bi-product of Vanaspati operations) was sold primarily in Maharashtra and MP. The company was aptly named Western India Products Limited. Wipro Limited (Wipro), together with its subsidiaries and associates (collectively, the company or the group) is a leading India based provider of IT Services and Products, including Business Process Outsourcing (BPO) Services, globally.

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 40nationalities and growing. Wipro is present across 29 counries,36 Development canters, Investors across 24 countries.
Largest third party R&D Service provider in the world. Largest Indian provider. Technology Infrastructure management service

A vendor of choice in the middle east Among the top 3 Indian BPO Service provider by Revenue (* Nasscom) Among the top 2 Domestic IT Services companies in India (*IDC India)

GROUP COMPANIES Wipro Infrastructure Engineering Ltd. Wipro Chandrika Ltd.(a) Wipro Inc. cMango Pte Ltd. Wipro Japan KK Wipro Holdings (Mauritius) Ltd. Wipro Australia pty Ltd. WMNETSERV Ltd.(a)

Wipro Shanghai Ltd.

Wipro Trademarks Holding Ltd. Wipro Travel Services Ltd. Wipro Cyprus Private Ltd. Wipro Consumer Care Ltd. Wipro Health Care Ltd.

Quantech Global Service Ltd.

3D Network Pte Ltd. Planet PSG Pte Ltd. Spectramind Inc.

BUSINESS-DESCRIPTION Wipro Limited is the first PCMM Level 5 and SEI CMM Level 5 certified ITServices Company globally. Wipro provides comprehensive IT solutions and services, including systems integration, Information Systems outsourcing, package implementation, software application development and maintenance, and research and development services to corporations globally. The Group's principal activity is to offer information technology services. The services include integrated business, technology and process solutions including systems integration, package implementation, software application development and maintenance and transaction processing. These services also comprise of information technology consulting, personal computing and enterprise products, information technology infrastructure management and systems integration services. The Group also offers products related to personal care, baby care and wellness products. The operations of the Group are conducted in India, the United States of America and Other 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, technology infrastructure outsourcing, BPO services and research and development services in the areas of hardware and software design. Its service offerings in BPO services include customer interaction services, finance and accounting services and process improvement services for repetitive processes.

BOARD OF DIRECTORS

Finance Structure Ratios indicate the relative mix or blending of owners funds and outsiders debt funds in the total capital employed in the business. It should be noted that equity funds are the prime fund which increase progressively through reinvestment of profits, while outside debt funds are supplementary funds and are added at the discretion of the management. The following Finance Ratios are calculated for the company.

Debt Ratio Debt-Equity Ratio Interest Coverage Ratio

DEBT RATIO
Debt ratio indicates the long term debt out of the total capital employed. Debt Ratio = Long Term Debt/Total Capital Employed Debt Ratio 2012 Long Term Debt 25028 2011 24750

Total Capital Emp 268553 Trend Interpretation .09

237952 .10

From the above calculation it seems that the ratio is almost same for last two years. Due to increase in total capital employed more than total long term debt in year 2012 when compared with 2011 it slightly fallen. Debt covers 9% of total capital and it is not a big burden to company and the company has very less chance of bankruptcy.

DEBT-EQUITY RATIO This ratio is only another form proprietary ratio and establishes relation between the outside long term liabilities and owner funds. It shows the proportion of long term external equity & internal Equities.

Debt Equity Ratio = Total Long Term debt/Share holder equity Debt Equity Ratio
2012 Total Long term D 25028 S.H Equity Trend Interpretation 243525 .10 2011 24750 213202 .12

It shows companies accumulated more equity than required company has to refocus to its strategic policies and plans and try to accumulate more debt funds in future so as to make the balance between debt and equity. It can be above 33 or 35 to better use of Equity.

INTEREST COVERAGE RATIO Interest Coverage Ratio: The ratio indicates as to how many times the profit covers the payment of interest on debentures and other long term loans hence it is also known as times interest earned ratio. It measures the debt service capacity of the firm in respect of fixed interest on long term debts. Interest Coverage Ratio = EBIT/Interest ICR 2012 EBIT Interest 64013 799 2011 57668 586

Trend 80.17 98.47 Interpretation Company have higher ICR, it indicates a better financial health as it means that the company is more capable to meeting its interest obligations from operating earnings. On the other hand, a high ICR may suggest a company is "too safe" and is neglecting opportunities to magnify earnings through leverage. However, there is decrease in ICR than previous year.

RETURN ON INVESTMENT Rate of Return on Investment indicates the profitability of business and is very much in use among financial analysts. ROI= (EBIT/Total Assets)100 ROI 2012 EBIT Total Assets 64013 385959 2011 57668 341198

Trend Interpretation

16.59

16.90

From the above observation it can be seen that ratio is falling down. Ratio is decreasing after 2005 at a decreasing rate because of assets increase compare to sales. The companies total assets are increasing year on year but there was fall in ROI. So, conclusion made that the company is not using its assets and investment in an efficient manner.

RATE OF RETURN ON EQUITY Rate of Return on Equity shows what percentage of profit is earned on the capital invested by ordinary share holders. Rate of Return on Equity =Profit for the Equity/Net worth RRE 2012 Profit for Equity Net Worth Trend Interpretation 46851 243525 .19 2011 48437 213202 .23

Company is getting almost same return on equity.

As a result the share holders are getting higher return every year and investment portfolio scheme selection was a judicious decision taken by the company.
This happens because Profit and Share Capital both increasing same way.

EARNINGS PER SHARE This ratio measures profit available to equity share holders on per share basis. It is not the actual amount paid to the share holders as dividend but is the maximum that can be paid to them.

Earnings per Share = Net Profits for Equity Shares/No. of Equity Shares
EPS

2012
N.P for E.S No. of E.S Trend Interpretation Earning per share is almost same for two years. 43455 227159 .19

2011
43783 220238 .198

In 2012 no. of share holders are increased but still it managed to maintain EPS with previous year.

DIVIDEND PAY-OUT RATIO This ratio indicate split of EPS between Cash Dividends and reinvestment of Profit. If the Company has Profitable projects than it will prefer to keep dividend pay out ratio lower.

Dividend pay-out Ratio = Dividends/Net Income

DPOR

2012 Dividends
Net Income Trend Interpretation

2011 15516
48437 .32

17068
46851 .36

If the company wants to prosper in future with flying colors then ideally more amounts should be reinvested in the business rather than distributing as dividend. Company is preferring distributing dividends instead of maintaining it for capital gains.

P/E RATIO P/E Ratio is computed by dividing the current market price of a share by earning per share. This is Popular measure extensively used in Investment analysis.

P/E Ratio = Current Market Price of Share/Earnings per Share

PER 2012 Current M.P EPS Trend Interpretation 440 19 23.16 2011 480 19.8 24.24

If Ratios is high means Share price of company is Stable and Shareholder are interested to invest in the companys share.

DIVIDEND POLICY The Company has only one class of shares referred to as equity shares having a par value of Rs. 2/-. As per the current status, The Board of Directors of the Company has recommended a dividend of 950% (Rs. 19/- per share of face value of Rs. 2)for the financial year ended 31 March 2012, free of tax in hands of the shareholders. When compared to face value of share company is paying more dividend because of its demand for shares in market.

WORKING CAPITAL Paeticulars Amount Particulars Amount

Current Investments
Inventories

40409
7851

Short-term borrowings
Trade Payables Other current liabilities Short-term provisions

30410
38922 20507 27567

Trade Receivables 79670 Cash and bank balances Short-term loans and advances Total Current Assets 62328 33211 254582

Total Current Liabilities

117406

Company is maintaining positive working capital and also ideal ratio of 2:1.
Little sum of amount is more invested in form of current assets and it can be used for capital gains.

Net working Capital

Networking capital = Current Assets Current Liabilities WC 2012 Current Assets Amount 254582 137176 Current Liabilities 117406 2011 217122 103246 113876

Observation from Financial Statement Company financing its current assets most from Short term loans or borrowings especially from banks and remaining from long term. So, we can say that company is following Aggressive Approach to finance its current assets.

CONCLUSION Wipro is an India based multinational company dealing with information technology (IT) services, consulting and outsourcing services. Headquartered in Bangalore, Karnataka, the company operates in 54 countries across the globe. The company is also listed in the Fortune India 500, 2012. Its Sales Revenue are increasing year on year and sales of 2012 are Rs.318034 Millions where as in 2011 it is Rs.264012.

Net Profit for year 2012 is Rs.46,851 Millions and in 2011 is Rs.48,437.
It is constantly among top 5 in IT companies with performing well in all financial matters.