Xavier School of Rural Management

Financial Reporting & Accounting

Summary of an Annual Report of Wipro ltd.

BY:
Amulya Kumar Sahoo UR18005
Apporva Srivastava UR18007
Asif Hussain UR18009
Rahul UR18018
Rishav Pandey UR18019

1
WIPRO LIMITED

Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO) is a leading global information
technology, consulting and business process services company. It harness the power of
cognitive computing, hyper-automation, robotics, cloud, analytics and emerging technologies
to help our clients adapt to the digital world and make them successful. A company recognized
globally for its comprehensive portfolio of services, strong commitment to sustainability and
good corporate citizenship, it has over 160,000 dedicated employees serving clients across six
continents. Wipro began business as a vegetable oil manufacturer in 1945 at Amalner, a small
town in Western India and thereafter, forayed into soaps and other consumer care products.
During the early 1980s, they entered the Indian IT industry by manufacturing and selling mini
computers. In the 1990s, they leveraged hardware R&D design and software development
expertise and began offering software services to global clients. In 2013, they demerged the
non-IT Diversified Businesses. With a track record of over 25 years in IT Services today,
focused entirely on the global Information Technology business. Wipro is listed on National
Stock Exchange and Bombay Stock Exchange in India and New York Stock Exchange in the
US. Wipro Digital has scaled significantly since its inception. Clients understand differentiated
value proposition which brings together advisory, design and technology to drive digital
transformation. They have consolidated, scaled up their Consulting arm and aligned it with
Digital. This end-to-end digital value-chain enables them to ‘connect-the-dots’ across the needs
of their clients’ customers, their clients’ strategy, digital design and technology capability and
deliver business value to their clients. Clients are moving from experimental projects in digital
to large transformational deals and Wipro is positioned very favorably. The best example is
their large Digital transformation engagement with one of the Top 10 banks in Europe where
Wipro’s brief is to deliver the complete digital portfolio for the bank. Wipro will conceive,
design and build the solutions that deliver user experience for the bank’s consumers. In FY17,
Digital eco-system grew from 17.5% of revenues in Q1 to 22.1% in Q4.
HOLMES: Wipro HOLMES Artificial Intelligence Platform (HOLMES), their automation
platform, continues to be a differentiator at the marketplace. They are scaling the deployment
of HOLMES, across their clients. HOLMES for IT is a focused initiative for us to improve not
only the delivery productivity, but also drive a new way to work as they foresee cognitive and
Robotic Process Automation (“RPA”) drastically changing the traditional IT delivery model.
In FY17, they generated productivity worth over 12,000 persons across 140+ customer
engagements by leveraging next generation delivery practices and deploying over 1,800
cumulative instances of HOLMES bots in the areas of application development, maintenance
and infrastructure services.

Promoters:
2
Azim Premji.

Board of Directors:
RishadPremji - Chief Strategy Officer & Member of the Board.
Narayanan Vaghul - Independent Director.
Dr. Ashok S Ganguly - Independent Director.
IreenaVittal - Independent Director.
Azim H Premji - Executive Chairman.
Abidali Z Neemuchwala - CEO & Member of the Board.

Objective of Trend Analysis: This comparative study or the trend analysis has been done to
examine the key financial items, to identify the trends they depict and to make a prediction
about how those items are likely to behave in future.

COMMONSIZE PROFIT AND LOSS

3
 Mar 17 % 16-Mar %

INCOME
Revenue From Operations
[Gross]
45,639.60 100.0000% 44,684.60 100.0000%
Less: Excise/ Sevice
Tax/Other Levies
0 0.0000% 0 0.0000%
Revenue From Operations
[Net]
45,639.60 100.0000% 44,684.60 100.0000%
Other Operating Revenues 408.2 0.8944% 0 0.0000%
Total Operating Revenues 46,047.80 100.8944% 44,684.60 100.0000%
Other Income 2,570.00 5.6311% 2,771.50 6.2024%
Total Revenue 48617.8 106.5255% 47456.1 106.2024%
EXPENSES
Cost Of Materials Consumed 0 0.0000% 0.2 0.0004%
Purchase Of Stock-In Trade 2,186.90 4.7917% 2,655.50 5.9428%
Operating and Direct Expenses
Changes In Inventories Of
FG,WIP And Stock-In Trade
164 0.3593% -53.1 -0.1188%
Employee Benefit Expenses 21,854.40 47.8847% 21,379.70 47.8458%
Finance Costs 392.1 0.8591% 527.8 1.1812%
Depreciation And
Amortisation Expenses
1,047.70 2.2956% 868.8 1.9443%
Other Expenses 12,285.60 26.9187% 11,595.10 25.9488%
Total Expenses 37930.7 83.1092% 36974 82.7444%
Profit/Loss Before
Exceptional,
ExtraOrdinary Items And
Tax 10687.1 23.4163% 10482.1 23.4580%
Profit/Loss Before Tax 10,687.10 23.4163% 10,482.10 23.4580%
Tax Expenses-Continued
Operations
Current Tax 2,430.40 5.3252% 2,452.30 5.4880%
Less: MAT Credit Entitlement 0 0.0000% 0 0.0000%
Deferred Tax 95 0.2082% -69.2 -0.1549%
Other Direct Taxes
Tax For Earlier Years 0 0.0000% 0 0.0000%
Total Tax Expenses 2525.4 5.5334% 2383.1 5.3332%
Profit/Loss After Tax
And Before
ExtraOrdinary Items 8161.7 17.8829% 8099 18.1248%

COMMONSIZE BALANCE SHEET

4
 Mar 17 % 16-Mar %
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 486.1 0.7697% 494.1 0.8350%
Total Share Capital 486.1 0.7697% 494.1 0.8350%
Reserves and Surplus 46,219.50 73.1820% 40,411.10 68.2891%
Total Reserves and Surplus 46,219.50 73.1820% 40,411.10 68.2891%
Total Shareholders Funds 46,705.60 73.9517% 40,905.20 69.1241%
Equity Share Application
NON-CURRENT LIABILITIES 0.0000%
Long Term Borrowings 1,146.30 1.8150% 1,146.50 1.9374%
Deferred Tax Liabilities [Net] 139.1 0.2202% 72.2 0.1220%
Other Long Term Liabilities 952.7 1.5085% 46.4 0.0784%
Long Term Provisions 373.3 0.5911% 399.1 0.6744%
Total Non-Current Liabilities 2,611.40 4.1348% 1,664.20 2.8123%
CURRENT LIABILITIES 0.0000%
Short Term Borrowings 5,018.60 7.9462% 5,549.50 9.3779%
Trade Payables 3,818.60 6.0462% 5,993.10 10.1275%
Other Current Liabilities 3,696.60 5.8530% 2,665.20 4.5038%
Short Term Provisions 1,306.10 2.0680% 2,399.30 4.0545%
Total Current Liabilities 13839.9 21.9135% 16607.1 28.0637%
Total Capital And Liabilities 63,156.90 100.0000% 59,176.50 100.0000%
ASSETS
NON-CURRENT ASSETS
Tangible Assets 3,755.50 5.9463% 3,726.20 6.2968%
Intangible Assets 606.7 0.9606% 462.5 0.7816%
Capital Work-In-Progress 694.1 1.0990% 325.1 0.5494%
Fixed Assets 5056.3 8.0059% 4513.8 7.6277%
Non-Current Investments 5,999.40 9.4992% 5,732.80 9.6876%
Deferred Tax Assets [Net] 235.2 0.3724% 290.4 0.4907%
Long Term Loans And Advances 1,965.70 3.1124% 3,358.40 5.6752%
Other Non-Current Assets 1,173.20 1.8576% 252.4 0.4265%
Total Non-Current Assets 14429.8 22.8475% 14147.8 23.9078%
CURRENT ASSETS
Current Investments 29,146.70 46.1497% 12,730.20 21.5123%
Inventories 355.9 0.5635% 526.2 0.8892%
Trade Receivables 8,129.90 12.8725% 8,704.80 14.7099%
Cash And Cash Equivalents 3,516.60 5.5680% 12,007.80 20.2915%
Short Term Loans And Advances 5,836.10 9.2406% 5,499.50 9.2934%
OtherCurrentAssets 1,741.90 2.7581% 5,560.20 9.3960%
Total Current Assets 48727.1 77.1525% 45028.7 76.0922%
Total Assets 63156.9 100.0000% 59176.5 100.0000%

COMPARITIVE PROFIT AND LOSS

5
 Mar-17 16-Mar Difference %
INCOME
Revenue From Operations [Gross] 45,639.60 44,684.60 955.00 2.1372%
Less: Excise/Sevice Tax/Other Levies 0 0 0.00
Revenue From Operations [Net] 45,639.60 44,684.60 955.00 2.1372%
Other Operating Revenues 408.2 0 408.20
Total Operating Revenues 46,047.80 44,684.60 1,363.20 3.0507%
Other Income 2,570.00 2,771.50 -201.50 -7.2704%
Total Revenue 48617.8 47456.1 1,161.70 2.4479%
EXPENSES
-
Cost Of Materials Consumed 0 0.2
-0.20 100.0000%
Purchase Of Stock-In Trade 2,186.90 2,655.50 -468.60 -17.6464%
Operating & Direct Expenses
Changes In Inventories Of FG,WIP And Stock-In -
164 -53.1
Trade 217.10 408.8512%
Employee Benefit Expenses 21,854.40 21,379.70 474.70 2.2203%
Finance Costs 392.1 527.8 -135.70 -25.7105%
Depreciation And Amortisation Expenses 1,047.70 868.8 178.90 20.5916%
Other Expenses 12,285.60 11,595.10 690.50 5.9551%
Total Expenses 37930.7 36974 956.70 2.5875%
Profit/Loss Before Exceptional, ExtraOrdinary
Items And Tax 10687.1 10482.1 205.00 1.9557%
Profit/Loss Before Tax 10,687.10 10,482.10 205.00 1.9557%
Tax Expenses-Continued Operations
Current Tax 2,430.40 2,452.30 -21.90 -0.8930%
Less: MAT Credit Entitlement 0 0 0.00
-
Deferred Tax 95 -69.2
164.20 237.2832%
Other Direct Taxes
Tax For Earlier Years 0 0 0.00
Total Tax Expenses 2525.4 2383.1 142.30 5.9712%
Profit/Loss After Tax And Before ExtraOrdinary
Items 8161.7 8099 62.70 0.7742%
Profit/Loss From Continuing Operations 8,161.70 8,099.00 62.70 0.7742%
Profit/Loss For The Period 8161.7 8099 62.70 0.7742%

COMPARATIVE BALANCE SHEET

6
 Mar-17 16-Mar Difference %

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS
Equity Share Capital 486.1 494.1 -8 -162%
Total Share Capital 486.1 494.1 -8 -162%
Reserves and Surplus 46,219.50 40,411.10 5808.4 1437%
Total Reserves and Surplus 46,219.50 40,411.10 5808.4 1437%
Total Shareholders’ Funds 46,705.60 40,905.20 5800.4 1418%
Equity Share Application
NON-CURRENT LIABILITIES
Long Term Borrowings 1,146.30 1,146.50 -0.20 -2%
Deferred Tax Liabilities [Net] 139.1 72.2 66.90 9266%
Other Long Term Liabilities 952.7 46.4 906.30 195323%
Long Term Provisions 373.3 399.1 -25.80 -646%
Total Non-Current Liabilities 2,611.40 1,664.20 947.20 5692%
CURRENT LIABILITIES
Short Term Borrowings 5,018.60 5,549.50 -530.90 -957%
Trade Payables 3,818.60 5,993.10 -2,174.50 -3628%
Other Current Liabilities 3,696.60 2,665.20 1,031.40 3870%
Short Term Provisions 1,306.10 2,399.30 -1,093.20 -4556%
Total Current Liabilities 13839.9 16607.1 -2,767.20 -1666%
Total Capital And Liabilities 63,156.90 59,176.50 3,980.40 673%
ASSETS
NON-CURRENT ASSETS
Tangible Assets 3,755.50 3,726.20 29.30 79%
Intangible Assets 606.7 462.5 144.20 3118%
Capital Work-In-Progress 694.1 325.1 369.00 11350%
Fixed Assets 5056.3 4513.8 542.50 1202%
Non-Current Investments 5,999.40 5,732.80 266.60 465%
Deferred Tax Assets [Net] 235.2 290.4 -55.20 -1901%
Long Term Loans And Advances 1,965.70 3,358.40 -1,392.70 -4147%
Other Non-Current Assets 1,173.20 252.4 920.80 36482%
Total Non-Current Assets 14429.8 14147.8 282.00 199%
CURRENT ASSETS
Current Investments 29,146.70 12,730.20 16,416.50 12896%
Inventories 355.9 526.2 -170.30 -3236%
Trade Receivables 8,129.90 8,704.80 -574.90 -660%
Cash And Cash Equivalents 3,516.60 12,007.80 -8,491.20 -7071%
Short Term Loans And Advances 5,836.10 5,499.50 336.60 612%
OtherCurrentAssets 1,741.90 5,560.20 -3,818.30 -6867%
Total Current Assets 48727.1 45028.7 3,698.40 821%
Total Assets 63156.9 59176.5 3,980.40 673%

Calculation of Ratios:

7
 Sl.no. RATIOS FORMULAE 2017 2016
Liquidity And Solvency
Ratios
CURRENT Assets/ CURRENT
1 Current Ratio LIABILITIES 3.52077 2.711413
2 Quick Ratio QUICK ASSETS/ Current LIABILITIES 3.495054 2.679727
3 Propietary Ratio Shareholders fund /total assets 0.739517 0.691241
4 Debt Equity Ratio DEBT/EQUITY 0.055912 0.040684
5 Total Net Worth Ratio DEBT/EQUITY+DEBT 0.052951 0.039094
Profitability ratios
6 Gross Profit Margin (%) (sales-COGS/SALES)*100 94.83519 94.16197
7 Net Profit Margin (%) (NET PROFIT/SALES)*100 0.178829 0.181248
Coverage Ratios
8 Interest Coverge Ratio EBIT/INTEREST 27.25606 19.85998
Turnover Ratios
CREDIT SALES/AVG. A/Cs
9 Debtors Turnover Ratio RECEIVABLES 5.422087 5.304125
CREDIT PURCHASES/AVG. A/Cs
10 Creditors Turnover Ratio PAYABLES 0.441826 0.443272
11 Fixed Assets Turnover Ratio NET SALES/FIXED ASSETS 9.026284 9.899552
Overall Ratios
Return On Capital
12 Employed (%) (EBIT /Capital employed)*100 22.88184 25.62535
13 Return On Net Worth PAT/Equity 16.79017 16.39142
14 Retrun On Investment PAT/Shareholders fund 0.174748 0.197994
15 Return on Assets (%) (NET PROFIT/TOTAL ASSETS)*100 12.9229 13.68618

INTERPRETATION OF THE TRENDS OF PROFIT & LOSS STATEMENT

8
 A. Trends of Revenue:
Comment on total revenue: Hence the total revenue includes revenue from operations,
other operating activities and the other income where all of these showed an increase
over the past year. Hence the overall revenue or the total revenue of the company has
seen an increase.
Comment on operating revenues: There were increase in operating revenues for the company
from the year 2016-17.
Comment on Revenue from Operations: The revenue from operations shows a growth from
2016-17 due to increase in the sales value. Hence there is an increasing trend in the revenue.

B.Trends of Expenses:

Comment on purchase of Stock-in-Trade: Purchase of stock-in-Trade refers to the value of

commodities which are purchased by the company for the resale. Hence in this case the purchases of
the company decreased from 2016-2017.

9
Comment on Depreciation and Amortization expenses: The Company’s depreciation and
amortization expenses have been increasing as there is an increase in the value of tangible and intangible
assets where depreciation has to be charged on the first and amortization on the latter.
Comment on Profit/loss for the period : profit increased a bit from 2016 to 2017 accounting year

INTERPRETATION OF THE TRENDS OF BALANCE SHEET

BS Graphs
TOTAL ASSETS 59176.5
63156.9
TOTAL CAPITAL AND LIABILITIES 59176.5
63156.9
TOTAL CURRENT LIABILITIES 16607.1
13839.9
0 10000 20000 30000 40000 50000 60000 70000

16-Mar Mar-17

A. Trends of Total Asset :Total Asset of company has an increase in the value from
2016 to 2017.

B.Trend of Total Current Liabilities: Due to decrease of all the components i.e. trade payables, short
term borrowings, provisions and other liabilities, the total current liabilities has an decrease in the value
in the year2 2016-17.
C.Trend of Total Capital and Liabilities: Total Capital and Liabilities has an increase in the value in
the year year 2016-2017

INTERPRETATION OF THE TRENDS OF RATIO ANALYSIS

10
Liquidity & Solvency Ratio:

Liquidity And Solvency Ratios

4
3.5
3
2.5
2
1.5
1
0.5
0
Current Ratio Quick Ratio Propietary Ratio Debt Equity Ratio Total Net Worth
Ratio

2017 2016

Looking at the last 10 years data, the current ratio is maintained at par
with the ideal level , i.e. 2:1. There were fluctuations in the last 4 years
but it was not maintained properly in the current years because if the
current ratio is too more than ideal it means the funds of company are
not being utilized properly.

11
according to the given data , the company can easily pay off its current
liabilities with the available funds. And also the funds are properly put
into use which resulted in proper quick ratio.

Return on assets:
According to the chart, the assets available in the company have been
used properly till the year 2008, but the return generated using the
assets in the company in the recent years is very low compared to 2007
and 2008. So, company must look after this and plan for optimum
utilization of resources.

based on the ratio for 10 years, the debt capital is being reduced from
the total capital in the company which is a good sign because the equity
of the company is increased and that means the company has gained
trust in shareholders, which led to decrease in net worth ratio.

PROFITABILITY RATIO:

12
 Profitability Ratios

100

80

60

40

20

0
1 2

Gross Profit Margin (%) Net Profit Margin (%)

The gross profit has been the same almost all through the years. That
means company was maintaining its sales level all through the years
the same and there was no significant increase in the gross profit for
which company should take it into consideration.

The company should take efforts to increase the net profit margin.
Because expenses are more, the gross profit is high and net profit
margin in low. So, the company should reduce expense to increase the
net profit.

Coverage Ratios:

13
 COVERAGE RATIOS

27.25606

19.85998
INTEREST COVERGE RATIO INTEREST COVERGE RATIO
2017 2016

the company is able to recover the interest expenses with the available profits,
and it has the good coverage in the year 2010 and then it started to decrease
gradually. So, the company should take efforts maintain the level of 2010.

Turnover Ratios:

Turnover Ratios based on the

12 given data
10 the company
8
has been
maintaining
6
the
4

0
Debtors Turnover Ratio Creditors Turnover Ratio Fixed Assets Turnover Ratio

2017 2016

debtorsturnover ratio similarly all through the years and in the current

14
year it is increasing which is a good sign because the company started
extending its credit to the customers and increasing its sales.

according to the trend, the company has been using its fixed assets
efficiently and the increasing trend in the past years shows that the sales
are generated more using assets.

based on the trend, the company is taking long time to pay off the trade
payables than it used to pay off, because the trend is in a decreasing
way. So, it should focus on getting to the level of 2009.0

Overall ratio:

Overall Ratios
30

25

20

15

10

0
Return On Capital Return On Net Worth Retrun On Investment Return on Assets (%)
Employed (%)

2017 2016

Return on Capital Employed: the company is getting reasonable return

on capital employed but it is not significant. So, company should

15
improve its performance and try to reach to the level of 2016.It
decreased in the year 2017.

Return on net worth: significant return is generated through the equity

in the last years and that too it is in increasing trend. So, it is advisable
for the company to maintain the same system of generating income.

Return on investment: it is the return earned on an investment i.e. the

return that is earned through the capital employed, it is in decreasing
trend. So, company should focus on earning more return that it is
earning

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