Wipro

Balance sheet (Rs crore)

  Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 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 - 7.49 1.21 -
Preference share capital - - - - -
Reserves & surplus 11,260.40 9,025.10 6,135.30 4,751.73 3,461.04
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 9,554.90 6,478.10 4,955.74 3,608.28
Uses of funds
Fixed assets
Gross block 2,282.20 1,645.90 2,364.53 1,763.49 1,333.68
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 2,456.03
Net current assets
Current assets, loans & advances 12,058.10 6,338.40 4,076.68 2,672.86 2,038.41
Less : current liabilities & provisions 4,742.30 3,767.60 2,788.39 1,734.83 1,680.89
Total net current assets 7,315.80 2,570.80 1,288.29 938.03 357.52
Miscellaneous expenses not written - - - - -
Total 15,433.10 9,554.90 6,478.10 4,955.74 3,608.28
Notes:
Book value of unquoted investments - - 514.23 782.71 654.63
 Market value of quoted investments - - 2,956.87 2,088.71 1,803.84
Contingent liabilities 749.90 318.40 509.18 676.65 387.99
Number of equity shares outstanding
14615.00 14590.00 14257.54 7035.71 2327.59
(Lacs)
(Rs crore)
Profit loss account
  Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04
Income: 
Operating income  17,492.60 13,683.90 10,227.12 7,233.16 5,134.89
Expenses 
Material consumed  2,952.30 1,889.00 1,367.67 1,185.48 846.28
Manufacturing expenses  299.80 120.50 1,020.70 558.07 414.62
Personnel expenses 7,409.10 5,764.50 4,279.03 2,878.53 864.44
Selling expenses 532.10 - 171.05 107.15 77.02
Administrative expenses 2,583.70 2,655.40 904.78 685.80 1,804.06
Expenses capitalised - - - -37.12 -13.99
Cost of sales 13,777.00 10,429.40 7,743.22 5,377.92 3,992.43
Operating profit 3,715.60 3,254.50 2,483.90 1,855.25 1,142.45
Other recurring income 326.90 288.70 113.59 75.44 88.05
Adjusted PBDIT 4,042.50 3,543.20 2,597.49 1,930.68 1,230.50
Financial expenses 116.80 7.20 3.13 5.57 3.52
Depreciation  456.00 359.80 292.26 185.97 151.60
Other write offs - - - - -
Adjusted PBT 3,469.70 3,176.20 2,302.10 1,739.15 1,075.39
Tax charges  406.40 334.10 286.10 255.15 141.27
Adjusted PAT   3,063.30   2,842.10   2,016.00   1,484.00   934.12
Nonrecurring items - - 38.33 17.88 3.87
Other non cash adjustments - - -33.85 -7.06 -23.11
Reported net profit 3,063.30 2,842.10 2,020.48 1,494.82 914.88
Earnings before appropriation 3,063.30 2,842.10 2,020.48 1,494.82 914.88
Equity dividend 876.50 873.70 712.88 351.79 675.00
Preference dividend - - - - -
Dividend tax 148.90 126.80 99.98 49.34 86.48
Retained earnings 2,037.90 1,841.60 1,207.62 1,093.70 153.39
(Rs
Cash flow crore)
  Mar ' 06 Mar ' 05 Mar ' 04 Mar ' 03 Mar ' 02
Profit before tax 2,340.43 1,757.02 1,082.27 978.76 962.54
Net cash flow-operating activity 1,912.25 1,666.42 913.91 736.66 857.82
Net cash used in investing activity -1,694.42 -874.58 -1,062.09 -635.38 -988.21
Net cash used in fin. activity 59.80 -550.61 28.57 14.88 -22.93
Net inc/dec in cash and equivalent 277.63 246.80 -119.61 116.16 -153.33
Cash and equivalent begin of year 545.38 290.09 409.70 293.54 446.87
Cash and equivalent end of year 823.00 536.90 290.09 409.70 293.54

Brief history

Wipro was established in 1947. It was a vegetable oil company to start with and
was created from an oil mill established by father of Azim Premji, present Chairman
and CEO of Wipro. It later ventured into consumer goods in 1966 under Azim
Premji's leadership as Wipro Ltd. In 1975 Wipro Fluid Power was set up to make
pneumatic cylinders and hydraulic cylinders.

Products and services

Wipro offers its products and services in five major categories. Under information
technology services it offers products like business intelligence and information
management , business process management, enterprise business integration,
portals and content management, tandem nonstop application, enterprise
applications services, services, enterprise security, testing services, legacy
migration, service oriented architecture and quality consulting.

In product engineering solutions services section Wipro provides DSP and

multimedia, semiconductor IP, engineering design services, tandem nonstop
services, hardware design, technical publication, product strategy and architecture,
testing, product support and Wipro Techno Centre.

In technology infrastructure services it provides services like managed services,

telecom infrastructure, infrastructure consulting and integration, product support,
managed security services and business service management.

Financials
In 2007, Wipro earned $3.47 billion and they made profits worth $0.68 billion. Its
assets were worth $3.26 billion. In 2007, market value of Wipro was around $15.87
billion.

Awards and recognition

Recently Wipro won a number of prestigious awards. It won International Institute
for Software Testing’s Software Testing Best Practice Award. It also won Global
MAKE Award 2007 and Verizon's 2006 Supplier Excellence Award.

It has been conferred with HP’s Best Application Solution Implementation for
creating world-class BTO service practices. It won Outsourcing Excellence Award
along with Nortel. It is sole Indian business establishment to be present in
“Champions of Innovation” list of IN25 of Business Week and has received well
known 'Outsourcing Excellence' award for its BPO services.

Current financial crisis

In recent times, Wipro has been facing some problems regarding its profits. Rise in
profits has been below expectations. Revenue growth of Wipro has been
unsatisfactory too, in October-December quarter of 2008, revenues are supposed to
amount to $1.12 billion, which is just marginally more than $1.11 billion earned in
quarter spanning July to September.