ankitmantri.a
New member
OF
WIPRO LTD
Introduction
Wipro Technologies is a global services provider delivering technology-driven business solutions that meet the strategic objectives of our clients. Wipro has 55+ ‘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 frameworks and service delivery innovation. Wipro is the World's first CMMi Level 5 certified software services company and the first outside USA to receive the IEEE Software Process Award.
Auditor's Report Year End : Mar '08
We have audited the attached balance sheet of Wipro Limited (the
Company) as at 31 March 2008 and the profit and loss account and cash
flow statement for the year ended on that date, annexed thereto. These
financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
Without qualifying our opinion, we draw attention to Note 10 of the
Notes to Accounts that relates to an alternative interpretation of the
Securities and Exchange Board of India (Employee Stock Option Scheme
and Employee Stock Purchase Scheme) Guidelines, 1999 as amended. If the
Company were to amortize the cost on an accelerated basis, profit
before taxes for the year ended March 31, 2008 would have been lower by
Rs. 218 million. Similarly, the profit before taxes for the year ended
March 31, 2007 would have been lower by Rs. 348 million.
1. As required by the Companies (Auditors Report) Order, 2003, as
amended by the Companies (Auditors Report) Amendment Order, 2004 (the
Order), issued by the Central Government in terms of Section 227 (4A)
of the Companies Act, 1956 (the Act), we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
2. Further to our comments in paragraph 1 above, we report that:
a) we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b) in our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the balance sheet, profit and loss account and cash flow statement
dealt with by this report are in agreement with the books of account;
d) in our opinion, the balance sheet, profit and loss account and cash
flow statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956;
e) on the basis of written representations received from the directors
as on 31 March 2008, and taken on record by the Board of Directors, we
report that none of the directors is disqualified as at 31 March 2008
from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956; and
f) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
i. in the case of the balance sheet, of the state of affairs of the
Company as at 31 March 2008;
ii. in the case of the profit and loss account, of the profit of the
Company for the year ended on that date; and
iii. in the case of cash flow statement, of the cash flows for the
year ended on that date.
Annexure referred to in our report to the members of Wipro Limited
(the Company) for the year ended 31 March 2008
1. a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) The Company has a regular programme of physical verification of its
fixed assets by which all fixed assets are verified in a phased manner
over a period of three years. In our opinion, the periodicity of
physical verification is reasonable having regard to the size of the
Company and the nature of its assets. In accordance with the phased
programme of verification, certain fixed assets were verified during
the year and no material discrepancies were noticed on such
verification.
c) The fixed assets disposed of during the year were not substantial,
and therefore, do not affect the going concern assumption.
2. a) The inventory has been physically verified by the management
during the year. In our opinion, the frequency of such verification is
reasonable.
b) The procedures for the physical verification of inventories followed
by the management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
c) The Company maintains proper records of inventory. The discrepancies
noticed on physical verification between the physical stocks and the
book records were not material.
3. According to the information and explanations given to us, we are
of the opinion that there are no companies, firms or other parties
covered in the register required under section 301 of the Companies
Act, 1956. Accordingly, paragraph 4(iii) of the Order is not
applicable.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with
regards to purchase of inventories and fixed assets and with regard to
sale of goods and services. We have not observed any major weakness in
the internal control system during the course of the audit.
5. In our opinion, and according to the information and explanations
given to us, there are no contracts and arrangements the particulars of
which need to be entered into the register maintained under Section 301
of the Companies Act, 1956.
6. The Company has not accepted any deposits from the public.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government under
Section 209(1 )(d) of the Companies Act, 1956 for maintenance of cost
records in respect of Vanaspati, Toilet soaps, Lighting products and
Mini computers/Microprocessor based system and Data communication
system and are of the opinion that, prima facie, the prescribed
accounts and records have been made and maintained. We have not,
however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
9. a) According to the information and explanations given to us and on
the basis of the examination of the records of the Company, the Company
has been generally regular in depositing the undisputed statutory dues
including Provident Fund, Income tax, Sales tax, Excise duty, Wealth
tax, Investor Education and Protection Fund, Customs duty, Service tax,
Entry tax, Cess and other applicable statutory dues with the
appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, Income tax,
Wealth tax, Sales tax, Excise duty, Customs duty, Service tax, Entry
tax and other applicable statutory dues were outstanding as at 31 March
2008 for a period of more than six months from the date they became
payable. There were no dues on account of cess under Section 441A of
the Companies Act, 1956 since the date from which the aforesaid section
comes into force has not yet been notified by the Central Government.
b) Following are the details of the disputed Income tax, Wealth tax,
Excise duty, Customs duty and Sales tax that have not been paid to the
concerned authorities :
Name of the Statute Nature of dues Amount unpaid
(Rs. Mn)
Income Tax Income Tax 7
Act, 1961
Central Excise Excise duty 30
Act, 1944
Excise duty 63
Customs Act, 1957 Customs duty 85
Customs Duty 40
Sales Tax Act, 1956 Sales Tax 176
Sales Tax 38
Assessment year Forum where dispute is
pending
2004-05 Income Tax Appellate Tribunal
1989-90 to Assistant Commissioner of Customs
2004-05 and Excise/Deputy Commissioner of
Customs and Excise
1986-87 to CESTAT {Tribunal)/Comrrussioner
2004-05 of Customs and Excise (Appeals)/
Settlement Commission
1992-93 to Assistant commissioner of Customs
2005-06 and Excise/CESTAT
1990-91 to Supreme Court
1998-99
1986-87 to First Appellate Authority
2005-06
1987-88 to Tribunal/Deputy Commissioner of
2005-06 Sales Tax/Assistant Commissioner of
Sales Tax/Assistant Appellate
Commissioner
In respect of income-tax demands aggregating Rs. 11,127 million for the
financial years ended 31 March 2001, 2002, 2003 and 2004, primarily on
account of denial of deduction claimed by the Company under Section 10A
of the Income-tax Act, 1961, the Company has received favourable orders
from the appellate authorities vacating the demands for these years. As
of 31 March 2008, the income-tax authorities have preferred appeals
against these orders.
10. The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses during the financial
year and in the immediately preceding financial year.
11. In our opinion and according to the information and explanations
given by the management, the Company has not defaulted in repayment of
any dues to any financial institution or bank.
12. In our opinion and according to the explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. In our opinion and according to the explanations given to us, the
Company is not a chit fund/nidhi/mutual benefit fund/ society.
14. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. In our opinion and according to the information and explanations
given to us, the term loans taken by the Company have been applied for
the purpose for which they were raised.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we are of
the opinion that the funds raised on short term basis have not been
used for long term investment.
18. According to the information and explanations given to us, we are
of the opinion that there are no companies, firms or other parties
covered in the register required under section 301 of the Companies
Act, 1956. Accordingly, paragraph 4(xviii) of the Order is not
applicable.
19. The Company did not have any outstanding debentures during the
year.
20. The Company has not raised any money by public issues.
21. According to the information and explanations given to us, we
report that no material fraud on or by the Company has been noticed or
reported during the course of audit.
far BSR & Co.
Chartered Accountants
Zubin Shekary
Partner
Membership No.: 48814
Bangalore
18 April 2008
BALANCE SHEET OF WIPRO LTD
(Rs crore)
Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 ar ' 04
Sources of funds
Owner's fund
Equity share capital 292.30 291.80 285.15 140.71 46.55
Share application money 58.00 3.50 7.49 1.21 -
Preference share capital - - - - -
Reserves & surplus 11,260.40 9,025.10 6,135.30 4,751.73 .04
Loan funds
Secured loans 4.00 23.20 45.06 21.59 94.75
Unsecured loans 3,818.40 214.80 5.10 40.50 5.94
Total 15,433.10 9,558.40 6,478.10 4,955.74
Uses of funds
Fixed assets
Gross block 2,282.20 1,645.90 2,364.53 1,763.49 .68
Less : revaluation reserve - - - - -
Less : accumulated depreciation - - 1,246.27 855.53 678.66
Net block 2,282.20 1,645.90 1,118.25 907.96 655.02
Capital work-in-progress 1,335.00 989.50 612.36 250.24 139.71
Investments 4,500.10 4,348.70 3,459.20 2,859.51 .03
Net current assets
Current assets, loans & advances 12,058.10 6,338.40 4,076.68 2,672.86 .41
Less : current liabilities & provisions 4,742.30 3,764.10 2,788.39 1,734.83 .89
Total net current assets 7,315.80 2,574.30 1,288.29 938.03 357.52
Miscellaneous expenses not written - - - - -
Total 15,433.10 9,558.40 6,478.10 4,955.74
INTERPRETATION
• The company has adequate working capital because the current assets are in excess over the current liabilities. There
is a greater Increase In working capital as compared to the previous year , therefore the current financial position of
the business has also improved.
• The fixed asset of the firm are financed using long term loans and issue of capital. Fixed assets are less as compared
to the long term sources ,therefore a part of working capital is also financed by long term sources.
• After studying the various assets and liability it can be concluded that the overall financial position of the company
is good.
CASH FLOW STATEMENT OF WIPRO LTD
(Rs crore)
Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Profit before tax 3,469.70 3,176.20 2,340.43 1,757.02
Net cashflow-operating activity 715.90 2,674.60 1,912.25 1,666.42
Net cash used in investing activity -1,127.50 -1,881.90 -1,694.42 -874.58
Netcash used in fin. activity 2,290.90 238.50 59.80 -550.61
Net inc/dec in cash and equivlnt 1,879.30 1,031.20 277.63 246.80
Cash and equivalnt begin of year 1,852.80 818.00 545.38 290.09
Cash and equivalnt end of year 3,732.10 1,849.20 823.00 536.90
INTERPRETATION
• The profit before tax of the company has almost doubled within three years.
• The liquidity position of the company is really good as the net increase in cash and equivalent in yr 2008 is almost
doubled as compared to that of 2007.
• The net cash inflow from financial activity has almost become 10 times as compared to 2007 due to issue of share
And loan term borrowings(Secured & Un Secured loans)
PROFIT AND LOSS ACCOUNT OF WIPRO LTD
(Rs crore)
Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Income:
Operating income 17,492.60 13,683.90 10,227.12 7,233.16
Expenses
Material consumed 2,952.30 1,889.00 1,367.67 1,185.48
Manufacturing expenses 299.80 120.50 1,020.70 558.07
Personnel expenses 7,409.10 5,768.20 4,279.03 2,878.53
Selling expenses 532.10 - 171.05 107.15
Adminstrative expenses 2,583.70 2,651.70 904.78 685.80
Expenses capitalised - - - -37.12
Cost of sales 13,777.00 10,429.40 7,743.22 5,377.92
Operating profit 3,715.60 3,254.50 2,483.90 1,855.25
Other recurring income 326.90 288.70 113.59 75.44
Adjusted PBDIT 4,042.50 3,543.20 2,597.49 1,930.68
Financial expenses 116.80 7.20 3.13 5.57
Depreciation 456.00 359.80 292.26 185.97
Other write offs - - - - -
Adjusted PBT 3,469.70 3,176.20 2,302.10 1,739.15
Tax charges 406.40 334.10 286.10 255.15
Adjusted PAT 3,063.30 2,842.10 2,016.00 1,484.00
Non recurring items - - 38.33 17.88
Other non cash adjustments - - -33.85 -7.06
Reported net profit 3,063.30 2,842.10 2,020.48 1,494.82
Earnigs before appropriation 3,063.30 2,842.10 2,020.48 1,494.82
Equity dividend 876.50 873.70 712.88 351.79
Preference dividend - - - -
Dividend tax 148.90 126.80 99.98 49.34
Retained earnings 2,037.90 1,841.60 1,207.62 1,093.70
INTERPRETATION
• The net profit of the company has increased by 7.8 % in yr 2008 when compared to the previous year.
• The rate of change of equity dividend is continuously decreasing over the years.
• The retained earnings have increased in yr 2008 which has a vital impact on the profitability position of the
Company.
(Rs crore)
WIPRO LTD
Introduction
Wipro Technologies is a global services provider delivering technology-driven business solutions that meet the strategic objectives of our clients. Wipro has 55+ ‘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 frameworks and service delivery innovation. Wipro is the World's first CMMi Level 5 certified software services company and the first outside USA to receive the IEEE Software Process Award.
Auditor's Report Year End : Mar '08
We have audited the attached balance sheet of Wipro Limited (the
Company) as at 31 March 2008 and the profit and loss account and cash
flow statement for the year ended on that date, annexed thereto. These
financial statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with the auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
Without qualifying our opinion, we draw attention to Note 10 of the
Notes to Accounts that relates to an alternative interpretation of the
Securities and Exchange Board of India (Employee Stock Option Scheme
and Employee Stock Purchase Scheme) Guidelines, 1999 as amended. If the
Company were to amortize the cost on an accelerated basis, profit
before taxes for the year ended March 31, 2008 would have been lower by
Rs. 218 million. Similarly, the profit before taxes for the year ended
March 31, 2007 would have been lower by Rs. 348 million.
1. As required by the Companies (Auditors Report) Order, 2003, as
amended by the Companies (Auditors Report) Amendment Order, 2004 (the
Order), issued by the Central Government in terms of Section 227 (4A)
of the Companies Act, 1956 (the Act), we enclose in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
2. Further to our comments in paragraph 1 above, we report that:
a) we have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purposes of our
audit;
b) in our opinion, proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the balance sheet, profit and loss account and cash flow statement
dealt with by this report are in agreement with the books of account;
d) in our opinion, the balance sheet, profit and loss account and cash
flow statement dealt with by this report comply with the accounting
standards referred to in sub-section (3C) of Section 211 of the
Companies Act, 1956;
e) on the basis of written representations received from the directors
as on 31 March 2008, and taken on record by the Board of Directors, we
report that none of the directors is disqualified as at 31 March 2008
from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956; and
f) in our opinion and to the best of our information and according to
the explanations given to us, the said accounts give the information
required by the Companies Act, 1956, in the manner so required and give
a true and fair view in conformity with the accounting principles
generally accepted in India:
i. in the case of the balance sheet, of the state of affairs of the
Company as at 31 March 2008;
ii. in the case of the profit and loss account, of the profit of the
Company for the year ended on that date; and
iii. in the case of cash flow statement, of the cash flows for the
year ended on that date.
Annexure referred to in our report to the members of Wipro Limited
(the Company) for the year ended 31 March 2008
1. a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) The Company has a regular programme of physical verification of its
fixed assets by which all fixed assets are verified in a phased manner
over a period of three years. In our opinion, the periodicity of
physical verification is reasonable having regard to the size of the
Company and the nature of its assets. In accordance with the phased
programme of verification, certain fixed assets were verified during
the year and no material discrepancies were noticed on such
verification.
c) The fixed assets disposed of during the year were not substantial,
and therefore, do not affect the going concern assumption.
2. a) The inventory has been physically verified by the management
during the year. In our opinion, the frequency of such verification is
reasonable.
b) The procedures for the physical verification of inventories followed
by the management are reasonable and adequate in relation to the size
of the Company and the nature of its business.
c) The Company maintains proper records of inventory. The discrepancies
noticed on physical verification between the physical stocks and the
book records were not material.
3. According to the information and explanations given to us, we are
of the opinion that there are no companies, firms or other parties
covered in the register required under section 301 of the Companies
Act, 1956. Accordingly, paragraph 4(iii) of the Order is not
applicable.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with
regards to purchase of inventories and fixed assets and with regard to
sale of goods and services. We have not observed any major weakness in
the internal control system during the course of the audit.
5. In our opinion, and according to the information and explanations
given to us, there are no contracts and arrangements the particulars of
which need to be entered into the register maintained under Section 301
of the Companies Act, 1956.
6. The Company has not accepted any deposits from the public.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government under
Section 209(1 )(d) of the Companies Act, 1956 for maintenance of cost
records in respect of Vanaspati, Toilet soaps, Lighting products and
Mini computers/Microprocessor based system and Data communication
system and are of the opinion that, prima facie, the prescribed
accounts and records have been made and maintained. We have not,
however, made a detailed examination of the records with a view to
determine whether they are accurate or complete.
9. a) According to the information and explanations given to us and on
the basis of the examination of the records of the Company, the Company
has been generally regular in depositing the undisputed statutory dues
including Provident Fund, Income tax, Sales tax, Excise duty, Wealth
tax, Investor Education and Protection Fund, Customs duty, Service tax,
Entry tax, Cess and other applicable statutory dues with the
appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, Income tax,
Wealth tax, Sales tax, Excise duty, Customs duty, Service tax, Entry
tax and other applicable statutory dues were outstanding as at 31 March
2008 for a period of more than six months from the date they became
payable. There were no dues on account of cess under Section 441A of
the Companies Act, 1956 since the date from which the aforesaid section
comes into force has not yet been notified by the Central Government.
b) Following are the details of the disputed Income tax, Wealth tax,
Excise duty, Customs duty and Sales tax that have not been paid to the
concerned authorities :
Name of the Statute Nature of dues Amount unpaid
(Rs. Mn)
Income Tax Income Tax 7
Act, 1961
Central Excise Excise duty 30
Act, 1944
Excise duty 63
Customs Act, 1957 Customs duty 85
Customs Duty 40
Sales Tax Act, 1956 Sales Tax 176
Sales Tax 38
Assessment year Forum where dispute is
pending
2004-05 Income Tax Appellate Tribunal
1989-90 to Assistant Commissioner of Customs
2004-05 and Excise/Deputy Commissioner of
Customs and Excise
1986-87 to CESTAT {Tribunal)/Comrrussioner
2004-05 of Customs and Excise (Appeals)/
Settlement Commission
1992-93 to Assistant commissioner of Customs
2005-06 and Excise/CESTAT
1990-91 to Supreme Court
1998-99
1986-87 to First Appellate Authority
2005-06
1987-88 to Tribunal/Deputy Commissioner of
2005-06 Sales Tax/Assistant Commissioner of
Sales Tax/Assistant Appellate
Commissioner
In respect of income-tax demands aggregating Rs. 11,127 million for the
financial years ended 31 March 2001, 2002, 2003 and 2004, primarily on
account of denial of deduction claimed by the Company under Section 10A
of the Income-tax Act, 1961, the Company has received favourable orders
from the appellate authorities vacating the demands for these years. As
of 31 March 2008, the income-tax authorities have preferred appeals
against these orders.
10. The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses during the financial
year and in the immediately preceding financial year.
11. In our opinion and according to the information and explanations
given by the management, the Company has not defaulted in repayment of
any dues to any financial institution or bank.
12. In our opinion and according to the explanations given to us, the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
13. In our opinion and according to the explanations given to us, the
Company is not a chit fund/nidhi/mutual benefit fund/ society.
14. According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
other investments.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. In our opinion and according to the information and explanations
given to us, the term loans taken by the Company have been applied for
the purpose for which they were raised.
17. According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we are of
the opinion that the funds raised on short term basis have not been
used for long term investment.
18. According to the information and explanations given to us, we are
of the opinion that there are no companies, firms or other parties
covered in the register required under section 301 of the Companies
Act, 1956. Accordingly, paragraph 4(xviii) of the Order is not
applicable.
19. The Company did not have any outstanding debentures during the
year.
20. The Company has not raised any money by public issues.
21. According to the information and explanations given to us, we
report that no material fraud on or by the Company has been noticed or
reported during the course of audit.
far BSR & Co.
Chartered Accountants
Zubin Shekary
Partner
Membership No.: 48814
Bangalore
18 April 2008
BALANCE SHEET OF WIPRO LTD
(Rs crore)
Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 ar ' 04
Sources of funds
Owner's fund
Equity share capital 292.30 291.80 285.15 140.71 46.55
Share application money 58.00 3.50 7.49 1.21 -
Preference share capital - - - - -
Reserves & surplus 11,260.40 9,025.10 6,135.30 4,751.73 .04
Loan funds
Secured loans 4.00 23.20 45.06 21.59 94.75
Unsecured loans 3,818.40 214.80 5.10 40.50 5.94
Total 15,433.10 9,558.40 6,478.10 4,955.74
Uses of funds
Fixed assets
Gross block 2,282.20 1,645.90 2,364.53 1,763.49 .68
Less : revaluation reserve - - - - -
Less : accumulated depreciation - - 1,246.27 855.53 678.66
Net block 2,282.20 1,645.90 1,118.25 907.96 655.02
Capital work-in-progress 1,335.00 989.50 612.36 250.24 139.71
Investments 4,500.10 4,348.70 3,459.20 2,859.51 .03
Net current assets
Current assets, loans & advances 12,058.10 6,338.40 4,076.68 2,672.86 .41
Less : current liabilities & provisions 4,742.30 3,764.10 2,788.39 1,734.83 .89
Total net current assets 7,315.80 2,574.30 1,288.29 938.03 357.52
Miscellaneous expenses not written - - - - -
Total 15,433.10 9,558.40 6,478.10 4,955.74
INTERPRETATION
• The company has adequate working capital because the current assets are in excess over the current liabilities. There
is a greater Increase In working capital as compared to the previous year , therefore the current financial position of
the business has also improved.
• The fixed asset of the firm are financed using long term loans and issue of capital. Fixed assets are less as compared
to the long term sources ,therefore a part of working capital is also financed by long term sources.
• After studying the various assets and liability it can be concluded that the overall financial position of the company
is good.
CASH FLOW STATEMENT OF WIPRO LTD
(Rs crore)
Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Profit before tax 3,469.70 3,176.20 2,340.43 1,757.02
Net cashflow-operating activity 715.90 2,674.60 1,912.25 1,666.42
Net cash used in investing activity -1,127.50 -1,881.90 -1,694.42 -874.58
Netcash used in fin. activity 2,290.90 238.50 59.80 -550.61
Net inc/dec in cash and equivlnt 1,879.30 1,031.20 277.63 246.80
Cash and equivalnt begin of year 1,852.80 818.00 545.38 290.09
Cash and equivalnt end of year 3,732.10 1,849.20 823.00 536.90
INTERPRETATION
• The profit before tax of the company has almost doubled within three years.
• The liquidity position of the company is really good as the net increase in cash and equivalent in yr 2008 is almost
doubled as compared to that of 2007.
• The net cash inflow from financial activity has almost become 10 times as compared to 2007 due to issue of share
And loan term borrowings(Secured & Un Secured loans)
PROFIT AND LOSS ACCOUNT OF WIPRO LTD
(Rs crore)
Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05
Income:
Operating income 17,492.60 13,683.90 10,227.12 7,233.16
Expenses
Material consumed 2,952.30 1,889.00 1,367.67 1,185.48
Manufacturing expenses 299.80 120.50 1,020.70 558.07
Personnel expenses 7,409.10 5,768.20 4,279.03 2,878.53
Selling expenses 532.10 - 171.05 107.15
Adminstrative expenses 2,583.70 2,651.70 904.78 685.80
Expenses capitalised - - - -37.12
Cost of sales 13,777.00 10,429.40 7,743.22 5,377.92
Operating profit 3,715.60 3,254.50 2,483.90 1,855.25
Other recurring income 326.90 288.70 113.59 75.44
Adjusted PBDIT 4,042.50 3,543.20 2,597.49 1,930.68
Financial expenses 116.80 7.20 3.13 5.57
Depreciation 456.00 359.80 292.26 185.97
Other write offs - - - - -
Adjusted PBT 3,469.70 3,176.20 2,302.10 1,739.15
Tax charges 406.40 334.10 286.10 255.15
Adjusted PAT 3,063.30 2,842.10 2,016.00 1,484.00
Non recurring items - - 38.33 17.88
Other non cash adjustments - - -33.85 -7.06
Reported net profit 3,063.30 2,842.10 2,020.48 1,494.82
Earnigs before appropriation 3,063.30 2,842.10 2,020.48 1,494.82
Equity dividend 876.50 873.70 712.88 351.79
Preference dividend - - - -
Dividend tax 148.90 126.80 99.98 49.34
Retained earnings 2,037.90 1,841.60 1,207.62 1,093.70
INTERPRETATION
• The net profit of the company has increased by 7.8 % in yr 2008 when compared to the previous year.
• The rate of change of equity dividend is continuously decreasing over the years.
• The retained earnings have increased in yr 2008 which has a vital impact on the profitability position of the
Company.
(Rs crore)