SUMMER TRAINING REPORT

On
FINANCIAL ANALYSIS

Wipro

Submitted to the partial fulfillment of the requirements for the degree of

BACHELOR OF COMMERCE [Hons.]

Session: 2022-23

Submitted To: Submitted By:

Miss Nikita Vansh Kakkar

Faculty Guide B.Com [H] 5th Sem.

Roll No. 02890188820

FAIRFIELD INSTITUTE OF MANAGEMENT & TECHNOLOGY

New Delhi
 DECLARATION

The is titled “Training Report on Financial Analysis - Wipro” is conducted under the guidance of
Miss Nikita [Faculty Guide] of F.I.M.T, Delhi.

This work is conducted in partial fulfilment of Bachelor of Commerce[Hons.] from F.I.M.T, Delhi.
I also declare that no chapter of this manuscript in whole or in part has been incorporated in this report
from any earlier work done by others or by me. However, extracts of any literature which has been
used for this report has been duly acknowledged providing details of such literature in the references.

[Vansh Kakkar]
 PREFACE

As per the curriculum of the University for the B.Com [Hons.] degree course in Finance
Project has to be undertake in 5th Semester for the practical overview of the industry.

During the report everything that I have learnt & studied has been briefed in this report.

The report contains the necessary information in Finance in the main parts of the company.
The information has been prepared to best of my knowledge and the data made available by
WIPRO officials.
 ACKNOWLEDGEMENT

This project is a fruitful result of cooperative guidance with highest degree of support.

I am very much obliged to my parents whose trust and expectation from me gave me the self-
reliance to work remarkably.

I express my deep sense of gratitude to my guide Miss Nikita [Faculty Guide] and faculties
of F.I.M.T, Delhi. Her immense knowledge about the subject was a great source of
inspiration to me, and it incurred in me the feeling that I am in safe hands.

I also express my great thank to all those who directly or indirectly contributed to the
successful completion of my project.

[Vansh Kakkar]
 ABSTRACT

Today businesses integrate social and economic criterion into their financial assessments with
sayings as “Living is Business” meaning people and planet are primary and profit is
secondary. The demand of the business drivers today are not only the so called quality of
service or process or conveniences alone but also other variables like business practices,
employee treatment, community engagement and of course, the environment at large. This
takes care of the values of the business.

Financial analysis is the process of identifying the financial strengths and weaknesses of the
firm and establishing relationship between the items of the balance sheet and profit & loss
account.

”Being good is good for business”

 TABLE OF CONTENTS

1. Introduction

2. Company Profile

3. Review of Literature

4. Research Methodology

5. Data Analysis & Interpretation

6. Findings of the Study

7. Conclusion & Suggestions

Questionnaire

Bibliography
 Chapter -1

INTRODUCTION
 INTRODUCTION

THEORETICAL BACKGROUND OF FINANCIAL ANALYSIS

Financial analysis is the process of identifying the financial strengths and weaknesses of the
firm and establishing relationship between the items of the balance sheet and profit & loss
account. Financial ratio analysis is a fascinating topic to study because it can teach us so
much about accounts and businesses. When we use ratio analysis we can work out how
profitable a business is, we can tell if it has enough money to pay its bills and we can even
tell whether its shareholders should be happy! Ratio analysis can also help us to check
whether a business is doing better this year than it was last year; and it can tell us if our
business is doing better or worse than other businesses doing and selling the same things. In
addition to ratio analysis being part of an accounting and business studies syllabus, it is a
very useful thing to know anyway! The overall layout of this section is as follows: We will
begin by asking the question, what do we want ratio analysis to tell us? Then, what will we
try to do with it? This is the most important question, funnily enough! The answer to that
question then means we need to make a list of all of the ratios we might use: we will list them
and give the formula for each of them. Once we have discovered all of the ratios that we can
use we need to know how to use them, who might use them and what for and how will it help
them to answer the question we asked at the beginning? At this stage we will have an overall
picture of what ratio analysis is, who uses it and the ratios they need to be able to use it. All
that's left to do then is to use the ratios; and we will do that step- by-step, one by one

Ratio analysis is a powerful tool of financial analysis. A ratio is defined as “the indicated
quotient of two mathematical expressions” and “the relationship between two or more
things”. In financial analysis, a ratio is used as a benchmark for evaluation the financial
position and performance of a firm. The absolute accounting figures reported in the financial
statements do not provide a meaningful understanding of the performance and financial
position of a firm. An accounting figure conveys meaning when it is related to some other
relevant information. For example, an Rs.5 core net profit may look impressive, but the
firm’s performance can be said to be good or bad only when the net profit figure is related to
the firm’s Investment. Financial ratio analysis can reveal much about a company and its
operations. However, there are several points to keep in mind about ratios. First, a ratio is a
"flag" indicating areas of strength or weakness. One or even several ratios might be
misleading, but when combined with other knowledge of a company's management and
economic circumstances, financial analysis can tell much about a corporation. Second, there
is no single correct value for a ratio. The observation that the value of a particular ratio is too
high, too low, or just right depends on the perspective of the analyst and on the company's
competitive strategy. Third, financial ratios are meaningful only when compared with some
standard, such as an industry trend, ratio trend, a trend for the specific company being
analyzed, or a stated management objective.

Use and significance of ratio analysis:

The ratio is one of the most powerful tools of financial analysis. It is used as a device to
analyze and interpret the financial health of enterprise. Ratio analysis stands for the process
of determining and presenting the relationship of items and groups of items in the financial
statements. It is an important technique of the financial analysis. It is the way by which
financial stability and health of the concern can be judged. Thus ratios have wide applications
and are of immense use today.

Interpretation of Ratios:

The interpretation of ratios is an important factor. The inherent limitations of ratio analysis
should be kept in mind while interpreting them. The impact of factors such as price level
changes, change in accounting policies, window dressing etc., should also be kept in mind

when attempting to interpret ratios.

PREFERABLE RATIOS IN THE INDUSTRY

Though the value of debt to equity ratio depends on overall financial situation, goals,
employment security, risk aversion, tax implications, etc., the value of debt to equity ratio in
Indian power industry is 0.75 which shows that there is 75 paisa debt for every 1 rupee of
share holders’ funds which is not a very high value and firms are moderately strong to meet
the repayment requirements. According to Central IT Regulatory Commission this debt
equity ratio should be improved to 2.33 for the purpose of tariff determination for a particular
company in the power sector. The long term debt equity ratio (0.73) is nearly equal to the
debt- equity ratio which shows that the companies of this sector are able to fulfill its long
term repayment requirements as efficiently as other liabilities and the business is not at high
risk. In case of current ratio the rule of thumb says that the current ratio should be at least 2,
that is the Current assets should meet current liabilities at least twice. In power industry the
current ratio of 1.59 shows that it is less than required value, thus it is seen that this industry
should increase current assets and should control the current liabilities. In the power industry
the value of inventory turnover ratio of 14.2 can also be said in the form of 365/14.2 =
25.7days. The ratio shows a relatively high stock turnover which would seem to suggest that
the business deals in the field which require fast moving of its product i.e. IT. Generally, the
higher the firm’s total asset turnover, the more efficiently its assets have been utilized.
Always high fixed assets turnovers are preferred since they indicate a better efficiency in
fixed assets utilization. In case of Indian power industry a very low value (0.47) of fixed asset
turnover shows that the fixed assets of the industry have not been utilized efficiently. The
value of interest cover ratio is 2.96 is very impressive in Indian power sector. It shows that
the firms in the industry are strong enough to pay the interest expenses timely. The value of
Return on capital employed (8.79) is not very good return but with the high value of interest
cover ratio and slightly lower value of debt to equity ratio in the industry the return on capital
is in the moderately good condition.
Chapter -2

COMPANY

PROFILE
 COMPANY PROFILE
Introduction of company
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. Further,Wipro has
other business such as India and AsiaPac IT Services and products and Consumer Care
and Lighting. Wipro is headquartered in Bangalore, India.Wipro Technologies is a
global services provider delivering technology-driven business solutions that meet the
strategic objectives clients. Wipro has 40+ ‘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.

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 40

nationalities 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 Technology Infrastructure management service provider.
 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 Inc.
 cMango Pte Ltd.
 Wipro Japan KK
 Wipro Shanghai Ltd.
 Wipro Trademarks Holding Ltd.
 Wipro Travel Services Ltd.
 Wipro Cyprus Private Ltd.
 Wipro Consumer Care Ltd.
 Wipro Health Care Ltd.
 Wipro Chandrika Ltd.(a)

 Wipro Holdings (Mauritius) Ltd.

 Wipro Australia pty Ltd.
 WMNETSERV Ltd.(a)
 Quantech Global Service Ltd.
 3D Network Pte Ltd.
 Planet PSG Pte Ltd.
 Spectramind Inc.

History
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.
The Birth of the name Wipro - As the organization grew and diversified into operations
of Hydraulic Cylinders and Infotech, the name of the organization did not adequately
reflect its operations. Azim Premji himself in 1979 selected the name "Wipro" largely an
acronym of Western India Products. Thus was born the Brand Wipro. The name Wipro
was unique and gave the feel of an 'International" company. So much so that some dealers
even sent their cheques favouring Wipro (India) Limited. Fortunately, the banks accepted
them!!By the early 90s, Wipro had grown into various products and services. The Wipro
product basket had soaps called Wipro Shikakai, Baby products under Wipro Baby Soft,
Hydraulic Cylinders branded Wipro, PCs under the brand name Wipro, a joint venture
company with GE named Wipro GE and software services branded Wipro. The Wipro
logo was a 'W", but it was not consistently used in the products.It was clearly felt that the
organization was not leveraging its brand name across the various businesses. The main
issue remained whether a diverse organization such as Wipro could be branded under a
uniform look and feel and could there be consistent communication about Wipro as an
organization.
Company Profile
Business-Description

Wipro Limited is the first PCMM Level 5 and SEI CMM Level 5 certified IT Services
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. During
fiscal 2007, the Group acquired Wipro Cyprus Pvt Ltd, Retailbox Bv, Enabler
Informatica SA, Enabler France SAS, Enabler Uk Ltd, Enabler Brazil Ltd, Enabler and
Retail Consult GmbH, Cmango Inc, Cmango (India) Pvt Ltd, Saraware Oy, Quantech
Global Services and Hydroauto Group AB

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.

The Global IT Services and Products segment accounted for 74% of the Company's
revenues and 89% of its operating income for the year ended March 31, 2007 (fiscal
2007). Of these percentages, the IT Services and Products segment accounted for 68% of
its revenue, and the BPO Services segment accounted for 6% of its revenue during fiscal
2007.

Customized IT solutions

Wipro provides its clients customized IT solutions in the areas of enterprise IT services,
technology infrastructure support services, and research and development services. The
Company provides a range of enterprise solutions primarily to Fortune 1000 and Global
500 companies. Its services extend from enterprise application services to e-Business
solutions. Its enterprise solutions have served clients from a range of industries, including
energy and utilities, finance, telecom, and media and entertainment. The enterprise
solutions division accounted for 63% of its IT Services and Products revenues for the
fiscal 2007.

Technology Infrastructure Service

Wipro offers technology infrastructure support services, such as help desk management,
systems management and migration, network management and messaging services. The
Company provides its IT Services and Products clients with around-the-clock support
services. The technology infrastructure support services division accounted for 11% of
Wipro's IT Services and Products revenues in fiscal 2007.

Research and Development Services

Wipro's research and development services are organized into three areas of focus:
telecommunications and inter-networking, embedded systems and Internet access devices,
and telecommunications and service providers.The Company provides software and
hardware design, development and implementation services in areas,

such as fiber optics communication networks, wireless networks, data networks, voice
switching networks and networking protocols. Wipro's software solution for embedded
systems and Internet access devices is programmed into the hardware integrated circuit
(IC) or application-specific integrated circuit (ASIC) to eliminate the need for running the
software through an external source. The technology is particularly important to portable
computers, hand-held devices, consumer electronics, computer peripherals, automotive
electronics and mobile phones, as well as other machines, such as process-controlled
equipment. The Company provides software application integration, network integration
and maintenance services to telecommunications service providers, Internet service
providers, application service providers and Internet data centers.
Business Process Outsourcing Service

Wipro BPO's service offerings include customer interaction services, such as IT-enabled
customer services, marketing services, technical support services and IT helpdesks;
finance and accounting services, such as accounts payable and accounts receivable
processing, and process improvement services for repetitive processes, such as claims
processing, mortgage processing and document management. For BPO projects, the
Company has a defined framework to manage the complete BPO process migration and
transition. The Company competes with Accenture, EDS, IBM Global Services,
Cognizant, Infosys, Satyam and Tata Consultancy Services.India and AsiaPac IT Services
and Products

The Company's India and AsiaPac IT Services and Products business segment, which is
referred to as Wipro Infotech, is focused on the Indian, Asia-Pacific and Middle-East
markets, and provides enterprise clients with IT solutions. The India and AsiaPac IT
Services and Products segment accounted for 16% of Wipro's revenue in fiscal 2007. The
Company's suite of services and products consists of technology products; technology
integration, IT management and infrastructure outsourcing services; custom application
development, application integration, package implementation and maintenance, and
consulting

Wipro's system integration services

Include integration of computing platforms, networks, storage, data center and enterprise
management software. These services are typically bundled with sales of the Company's
technology products. Wipro's infrastructure management and total outsourcing services
include management and operations of customer's IT infrastructure on a day-to-day basis.
The Company's technology support services include upgrades, system migrations,
messaging, network audits and new system implementation. Wipro designs, develops and
implements enterprise applications for corporate customers. The Company's solutions
include custom application development, package implementation, sustenance of
enterprise applications, including industry-specific applications, and enterprise
application integration. Wipro also provides consulting services in the areas of business
continuity and risk management, technology, process and strategy.
Consumer Care and Lighting

Wipro's Consumer Care and Lighting business segment accounted for 5% of its revenue
in fiscal 2007. The Company's product lines include hydrogenated cooking oil, soaps and
toiletries, wellness products, light bulbs and fluorescent tubes, and lighting accessories.
Its product lines include soaps and toiletries, as well as baby products, using ethnic
ingredients. Brands include Santoor, Chandrika and Wipro Active. The Wipro Baby Soft
line of infant and child care products includes soap, talcum powder, oil, diapers and
feeding bottles and Wipro Sanjeevani line of wellness products.

The Company's product line includes incandescent light bulbs, compact fluorescent lamps
and luminaries. It operates both in commercial and retail markets. The Company has also
developed commercial lighting solutions for pharmaceutical production centers, retail
stores, software development centers and other industries. Its product line consists of
hydrogenated cooking oils, a cooking medium used in homes, and bulk consumption
points like bakeries and restaurants. It sells this product under the brand name Wipro
Sunflower.

Registered Office Address

WIPRO LIMITED

Doddakannelli, Sarjapur Road,

Bangalore – 560 035, India.
Tel : +91-80-28440011
Fax : +91-80-2844054

Board of Directors
 Azim H . Premji Chairman
 Dr Ashok S Ganguly Former Chief Ex.Officer Nortel
 B .C. Prabhakar Practitioner of Law
 Dr. Jagdish N. Sheth Professor Of Marketing-Emory Uni.Usa.
 N.Vagual Chairman-ICICI Bank Ltd
 Bill Owens Former Chief Ex.Officer,Nortel
 P. M. Sinba Former Chairman Pepsico India Holdings
Azim Premji

Chairmen & Managing Director

Auditors
 KPMG
 BSR & Co.
Audit committee

N Vaghul - Chairman

P M Sinha - Member

B C Prabhakar - Member

Board Governance and Compensation Committee

Ashok S Ganguly - Chairman

N Vaghul - Member

P M Sinha - Member

Shareholders’ Grievance and Administrative Committee

B C Prabhakar - Chairman

Azim H Premji - Member

 Chapter -3

REVIEW

OF

LITERATURE
 REVIEW OF LITERATURE

(A)…. Timo Salmi and Teppo Martikainen presented “A Review of the Theoretical and
Empirical Basis of Financial Ratio Analysis” This paper provides a critical review of the
theoretical and empirical basis of four central areas of financial ratio analysis. The research
areas reviewed are the functional form of the financial ratios, distributional characteristics of
financial ratios, classification of financial ratios, and the estimation of the internal rate of
return from financial statements. It is observed that it is typical of financial ratio analysis
research that there are several unexpectedly distinct lines with research traditions of their
own. A common feature of all the areas of financial ratio analysis research seems to be that
while significant regularities can be observed, they are not necessarily stable across the
different ratios, industries, and time periods. This leaves much space for the development of a
more robust theoretical basis and for further empirical research.

(B)…. Daniel J. Fonseca, Gary P. Moynihan and Vineet Jain presented paper “An
expert system for financial ratio analysis” According to them Financial analysis interprets
a company's past and present financial health and predicts its future condition. Although
company financial statements contain a wealth of information to support this analysis, their
interpretation may be complicated. Experts in this field are limited. This research focuses on
automating the current practice of financial ratio analysis to identify the various features that
need to be incorporated into the system. This involves calculating the ratios, establishing the
relationships between the ratios, determining the technique for accurately forecasting the
financial statements and/or ratios, developing heuristics for analysing the ratios and providing
a system for recommendations. A prototype expert system was then developed. The system is
capable of performing five types of analysis: liquidity, leverage, turnover, profitability, and
past performance. The output of the system is a list of conclusions and recommendations
based on these analyses.
(C)…. Mirela monea presented “ Financial Ratios - Reveal How a Business Is Doing?”

The paper aims to present the main financial ratios which provide a picture about
company’s profitability, its financial position, use of its assets efficiency, its long-term
debt financing. Discussion is focused on: profitability ratios, short-term financial ratios,
activity ratios, long-term debt ratios or dividend policy ratios. Also, will try to answer at
the following main questions: What financial ratios analysis tells us? What the users of
these needs to know?

(d)…. Dyson, R.G , Thanassoulis, E and Boussofiane, presented , “A comparison of

data Development analysis and ratio analysis as tools for performance” This paper
compares data envelopment analysis (DEA) and ratio analysis as alternative tools for
assessing the performance of organisational units such as bank branches and schools. Such
units typically use one or more resources to secure one or more outputs, the inputs and/or
outputs being possibly incommensurate. The assessment of District Health Authorities in
England on the provision of perinatal care is used as a vehicle for comparing the two
methods. The comparison focuses on how well the two methods agree on the performance of
a unit relative to that of other units, and on the estimates of targets each method provides for
improving the performance of units. It is found that provided the performance indicators
capture all variables used in the DEA assessment the two methods agree reasonably closely
on the performance of the units as a whole, though this depends on the way the performance
indicators are combined into a summary figure of performance. The two methods can
disagree substantially on the relative performance of individual units. Ratio analysis, unlike
DEA, is not found to be suitable for setting targets so that units can become more efficient.
This is mainly due to the fact that DEA takes simultaneous account of all resources and
outputs in assessing performance while ratio analysis relates only one resource to one output
at a time. However, the two methods can support each other if used jointly. Ratios do provide
useful information on the performance of a unit on specific aspects and they can support the
communication of DEA results to non-specialists when the two methods agree on
performance.
Key Ratios

(A): Liquidity Ratios

Short-term financial strength, measures the firm’s ability to meet current obligations.

(1): CURRENT RATIO..

An indication of a company's ability to meet short-term debt obligations; the higher

the ratio the more liquid the company is. Current ratio is equal to current assets
divided by current liabilities. If the current assets of a company are more than twice
the current liabilities, then that company is generally considered to have good short-
term financial strength. If current liabilities exceed current assets, then the company
may have problems meeting its short-term obligations. It indicates the availability of
current assets in rupees for every one rupee of current liability. A ratio of greater than
one means that the firm has more current assets than current claims against them
Current liabilities.

(2): Cash Ratio..

The ratio of a company total cash and cash equivalents to its current
liabilities. The cash ratio is most commonly used as a measure of company liquidity.
It can therefore determine if, and how quickly, the company can repay its short-term
debt. A strong cash ratio is useful to creditors when deciding how much debt, if
any, they would be willing to extend to the asking party.

(3): Quick Ratio..

Quick ratio also called Acid-test ratio, establishes a relationship between quick, or liquid,
assets and current liabilities. An asset is a liquid if it can be converted into cash immediately
or reasonably soon without a loss of value. Cash is the most liquid asset. Other assets that
are considered to be relatively liquid and included in quick assets are debtors and bills
receivables and marketable securities (temporary quoted investments). Inventories are
considered to be less liquid. Inventories normally require some time for realizing into cash;
their value also has a tendency to fluctuate. The quick ratio is found out by dividing quick

assets by current liabilities.

 (B): Solvency ratios

Long-term financial strength shows the proportions of debt and equity in financing the firm’s
assets.
(1): Debt-Equity Ratio..

A measure of a company financial leverage calculated by dividing its total

liabilities by stockholders equity. It indicates what proportion of equity and debt the
company is using to finance its assets.The relationship describing the lenders
contribution for each rupee of the owners’ contribution is called debt-equity (DE)
ratio is directly computed by dividing total debt by net worth.

(2): Proprietary ratio..

Proprietary ratio refers to a ratio which helps the creditors of the company in seeing
that their capital or loans which the creditors have given to the company are safe.
Proprietary ratio highlights the financial position of the company and therefore
Proprietary ratio can be interpreted as good if it is high because a higher proprietary
ratio would imply that company has enough capital to repay its creditors whenever
any such demand is made by the creditors. A lower proprietary ratio would imply that
company is not in a position to pay all of its creditors and therefore a low proprietary
ratio is a cause of concern for the creditors of the company.

(3): Capital Gearing Ratio..

A general term describing a financial ratio that compares some form of owner's equity (or
capital) to borrowed funds. Gearing is a measure of financial leverage, demonstrating the
degree to which a firm's activities are funded by owner’s funds versus creditor’s funds. A
company with high gearing (high leverage) is more vulnerable to downturns in the
business cycle because the company must continue to service its debt regardless of how
bad sales are. A greater proportion of equity provides a cushion and is seen as a measure
of financial strength.
(4): Interest Coverage Ratio.

A ratio used to determine how easily a company can pay interest on outstanding debt. The
interest coverage ratio is calculated by dividing a company's earnings before interest and
taxes (EBIT) of one period by the company's interest expenses of the same period.

(C): Profitability ratios

Long term earning power, measures overall performance and effectiveness of the firm

(1): Gross Profit Ratio..

Gross profit ratio (GP ratio) is the ratio of gross profit to net sales expressed as a
percentage. It expresses the relationship between gross profit and sales. Gross profit
ratio may be indicated to what extent the selling prices of goods per unit may be
reduced without incurring losses on operations. It reflects efficiency with which a
firm produces its products. As the gross profit is found by deducting cost of goods
sold from net sales, higher the gross profit better it is. There is no standard GP ratio
for evaluation. It may vary from business to business. However, the gross profit
earned should be sufficient to recover all operating expenses and to build up reserves
after paying all fixed interest charges and dividends.

(2): Net Profit Ratio..

The net profit ratio is net profit expressed in as a percentage of total sales. Net profit
is taken before tax and other indirect costs. Essentially it tells you about how the
company profile relate to their net sales. Different industries have fundamentally
different net profit ratios. The net profit ratio can tell us about the nature of the
industry the company is operating in as well as serving to compare past performances
of company.

(3): Return on total assets ratio..

A ratio that measures a company earnings before interest and taxes (EBIT) against its
total net assets. The ratio is considered an indicator of how effectively a company is
using its assets to generate earnings before contractual obligations must be paid. The
greater a company's earnings in proportion to its assets (and the greater the coefficient
from this calculation), the more effectively that company is said to be using
its assets. The Return on Total Assets is a useful way to measure how well the
company is actually able to make intelligent choices on how to spend its money on
new assets.
(4): Return on Capital Employed (ROCE)..

Return on Capital Employed (ROCE) is used in finance as a measure of the returns

that a company is realizing from its capital employed. It is commonly used as a
measure for comparing the performance between businesses and for assessing
whether a business generates enough returns to pay for its cost of capital. The main
drawback of ROCE is that it measures return against the book value of assets in the
business. As these are depreciated the ROCE will increase even though cash flow has
remained the same. Thus, older businesses with depreciated assets will tend to have
higher ROCE than newer, possibly better businesses. In addition, while cash flow is
affected by inflation, the book value of assets is not. Consequently revenues increase
with inflation while capital employed generally does not (as the book value of assets
is not affected by inflation).

(5): Earnings per Share (EPS)..

The portion of a company's profit allocated to each outstanding share of common

stock. Earnings per share serve as an indicator of a company's profitability. The
profitability of the shareholders investments can also be measured in many other
ways. One such measure is to calculate the earnings per share. The earnings per
share (EPS) are calculated by dividing the profit after taxes by the total number of
ordinary shares outstanding.

(6): Dividends per Share (DPS)..

The sum of declared dividends for every ordinary share issued. Dividend per share
(DPS) is the total dividends paid out over an entire year (including interim dividends
but not including special dividends) divided by the number of outstanding ordinary
shares. The net profits after taxes belong to shareholders. But the income, which they
will receive, is the amount of earnings distributed as cash dividends. Therefore, a
large number of present and potential investors may be interested in DPS, rather than
EPS. DPS is the earnings distributed to ordinary shareholders dividend by the number
of ordinary shares outstanding.

(7): Dividend Payout Ratio..

The payout ratio provides an idea of how well earnings support the dividend. More
mature companies tend to have a higher payout ratio.
 (D): Turnover Ratios

Term of investment utilization, reflects the firm’s efficiency in utilizing its assets

(1): Fixed Asset Turnover Ratio.

Fixed-asset turnover is the ratio of sales (on the profit and loss account) to the value
of fixed assets (on the balance sheet). It indicates how well the business is using its
fixed assets to generate sales. A long-term, tangible asset is held for business use and
not expected to be converted to cash in the current or upcoming fiscal year , such as
manufacturing equipment, real estate, and furniture. A high fixed asset turnover is
preferred since it indicates a better efficiency in fixed assets utilization. This ratio is
often used as a measure in manufacturing industries, where major purchases are made
for PP&E to help increase output. When companies make these large purchases,
prudent investors watch this ratio in following years to see how effective the
investment in the fixed assets was.

(2): Capital turnover ratio.

A company's annual sales divide by its average stockholders'

equity. Capital turnover is used to calculate the rate of return on common equity, and
is a measure of how well a company uses its stockholders' equity to generate revenue.
The higher the ratio is, the more efficiently a company is using its capital. A ratio of
how effectively a publicly-traded company manages the capital invested in it to
produce revenues. It is calculated by taking the total of the company's
annual sales and dividing it by the average stockholder equity, which is the average
amount of money invested in the company. A high ratio indicates that the company is
using its capital well, while a low ratio indicates the opposite. It is also called equity
turnover.

(3): Value added per employee..

Value add per employee is defined by customer perception of service and then
measured using the customer's perception per employee. The data used in measuring
this is an automated survey sent out to customers after every query has been set to
solve by the employee, the customers fill these surveys (optional) and give scores for
their perception of the quality of service that was rendered.
(4): Inventory Turnover Ratio.

It indicates the inventories turning into receivables through sales. Inventory turnover
ratio also indicates how many times inventory is sold and replaced in a financial year.

(5): Debtors Turnover Ratio..

Debtors constitute an important constituent of current assets and therefore the quality of the
debtors to a great extent determines a firm’s liquidity. It shows how quickly receivables or
debtors are converted into cash. In other words, the DTR is a test of the liquidity of the
debtors of a firm. The liquidity of firm’s receivables can be examined in two ways they are
DTR and Average Collection Period.

It indicates the number time debtors turned over each year. Generally the higher value of
debtor’s turnover shows high efficiency to manage the credit management.

(6): Debt Collection Period.

Debtor’s collection period is nothing but the period required to collect the money from the
customers after the credit sales. A speed collection reduces the length of operating cycle and
vice versa. The more quickly the customers pay, the less risk from bad debts, the lower the
expenses of collection and more liquid the nature of this asset.

It indicates the speed with which debts are collected.

SWOT ANALYSIS

STRENGTHS:

 Design and engineering support.

 Strong The company has kept with itself sufficient liquid funds to meet any
kind of cash requirement.

 Efficient and timely completion of project.

 A minimum risk factor. WIPRO Ltd has not included much of debt into its
capital structure thus minimizing the risk element.
 Best-integrated project management systems. It is moving ahead with sound
strategies for capacity addition and fuel security.
 Company with an excellent record and high profits. Disciplined capital
expenditure and prudent resource mobilization strategies have been abiding
features of management of finances.
 An early starter-more than 30 years experience in power sector.
 Excellent growth prospects with significant additions,
modifications and replacements. Environmental concern underpins the
growth strategy for a low carbon future

 Employee-friendly personnel policies. WIPRO is the only PSU ranked among

best employers in several prestigious surveys
 Low project cost of WIPRO’s companys and efficient working capacity of
companys.

WEAKNESSES:

 Some of the Company have become old and need investment in Renovation &
Modernization.
 Lack of availability of skilled manpower.
 Projects like “Hydro Projects” are highly capital intensive and have long gestation
period.
OPPORTUNITIES:

 Conducive regulatory framework for investment by private sector.

 Upcoming hydro and nuclear sector

 Huge opportunity in consultancy services.
 Huge capital requirement for expansion, diversification, horizontal and vertical
integration and R&M

THREATS:

 High AT&C / T&D Losses. These losses captures technical and commercial losses
and also losses due non-realization of billed amount. The main reasons include
overloading of existing lines and substation equipment’s, poor repair and maintenance,
theft and tampering etc.
 Deteriorating Financials of state utilities. The book losses of SPUs have increased
significantly due to reasons like, inability to enhance operating efficiencies and reduce
AT&C losses adequately and increasing gap between cost and revenue as tariff
increase has not kept pace with cost increases.
 Competition in many critical segments of the industry, especially in distribution
companies, is inadequate, while state owned distribution companies continue to under
perform.
 Chapter -4

RESEARCH

METHODOLOGY

OBJECTIVE OF STUDY
The main objectives of this study aimed are:

 To evaluate the performance of the company by using ratios as a yardstick to measure

the efficiency of the company and analyze various facts of the financial performance
of the company.

 To understand the liquidity, profitability and efficiency positions of the company

during the survey period.

 To make comparisons between the ratios during different periods.

 Ratio analysis is the process of establishing and interpreting various ratios for helping
in making certain decisions. There are a number of ratios which can be calculated
from the information given in the financial statements, but for the purpose of this
particular study we have selected only the appropriate data and calculated only a few
appropriate ratios.
 SCOPE OF THE STUDY

The scope of my project on the topic “Financial Analysis using Ratios” is limited to 5
financial years i.e. March 2017-2021. All the information, figures and findings mentioned in
the project are based on the data as available in the annual report of past 5 years. The study
on the financial statements will help the interested parties to know about the overall financial
health of the company. The ratios are helpful to forecast the future of the organization based
on the past performance.

Following are the steps followed in the Financial Analysis

 Selection of relevant data from the financial statements depending upon the objective
of the analysis.

 Comparison of the calculated ratios with the ratios of the same firm in the past or the
ratios developed from projected financial statements or the ratios of some other firms
or the comparison with ratios of the industry to which the firm belongs.

Standards of Comparison

 The basis of ratio analysis is majorly of four types.

 Past ratios, calculated from past financial statements of the firm.

 Competitor’s ratio, of the some most progressive and successful competitor firm at
the same point of time.

 Industry ratio, the industry ratios to which the firm belongs to

 Projected ratios, ratios of the future developed from the projected or pro forma
financial statements

This project will include the first type i.e. Past ratios calculated from past financial statements
of the firm.

In the view of functional classification following ratios have been calculated and studied
under this project.
  Ratios: This ratio explains the relationship between current assets and current
liabilities of a business.

 Profitability Ratios: This throws light on the profitability of the organization. It

may be calculated with regard to gross profit of net profit.

 Turnover Ratios: These ratios are calculated on the bases of ‘cost of sales’ or sales,
therefore, this ratio is also called as ‘Turnover Ratio’. Turnover indicates the speed or
number of times the capital employed has been rotated in the process of doing
business. Higher turnover ratio indicates the better use of capital or resources and in
turn lead to higher profitability

 Solvency Ratios: This ratio disclose the firm’s ability to meet the interest costs
regularly and Long term indebtedness at maturity

Limitations of the Study

The below mentioned are the constraints under which the study is carried out.

 The study is based on only secondary data.

 Only the information available in public domain was used.

 Time was an important limitation. Whole study was conducted in a period of just 45
days.

 WIPRO Ltd undertakes around 71 projects all over India. Individual balance sheets of
each project were not studied and only the aggregate figures as available in the annual
report were included.
 RESEARCH METHODOLOGY

Research Design:

Research design helps in proper collection and analysis of the data. It helps in future
decisions...

Research Approaches:

The most appropriate research is descriptive. This is because the goal of the study is clear
research will help to understand to concept better.

Classification of data:

Primary data

Primary data will be through regular interaction with the officials of WIPRO Ltd

Secondary data

This includes the information gathered from various Journals & periodicals, annual reports
and websites.

Sample Size

The sample size selected is of four years i.e. from 2018-2021.

Sampling technique

The sampling procedure employed for this is judgmental sampling a convenience sampling
technique in which elements are based on the judgment of researcher

Software tools used for the data analysis

The software tools used for data analysis in MS WORD & MS EXCEL.

The information is collected through secondary sources during the project. That information
was utilized for calculating performance evaluation and based on that, interpretations were
made.
 Chapter -4

DATA ANALYSIS

&

INTERPRETATION

DATA ANALYSIS & INTERPRETATION

(All figures in Rs.crore)
 (A): PROFITABILITY RATIOS

(1)..Gross Profit Ratio: It clearly establishes relationship of gross profit to net

sales of the firm.
Gross Profit
Gross Profit Ratio = X100
Net Sales

Particulars 2018 2019 2020 2021

Gross Profit 10885 12049 12326 16578

Total Sales 46568 55152 64841 68775

Gross Profit ratio 23.37 21.84 19 24.10

Notes:

 For all 4 years apart from fuel charges following items were included as factory
expenses: Power charges, water charges, stores consumed, rent, repairs &
maintenance , Construction equipment, charges for building, company and machinery,
power stations and other charges.

 The above mentioned items were selected from schedule 22 under the head
Generation, Administration & Other expenses.

 Net sales were calculated by deducting IT duty from Gross sales.

 2021 2018

27% 26%

2020 2019

22% 25%

Comments:

 A high gross profit margin indicates that the company can make a reasonable profit,
as long as it keeps the overhead cost in control. A low margin indicates that the
business is unable to control its production cost.

 As the gross profit is found by deducting cost of goods sold from net sales, higher the
gross profit better it is. There is no standard gross profit ratio.

 Beginning from the year 2018 Gross Profit ratio has always been decently maintained
by the company.

 As it is very clear from the figures gross profit was highest in the year 2021 i.e.27%.

 After 2019 though the gross profit has declined, it is accompanied by huge extension
in operations as number of projects undertaken has also increased.

 Gross profit was lowest last year i.e. 2020 at 22%.This indicates that overheads cost
has not been controlled as desired.

 Majority of the projects undertaken by WIPRO are in growth stage or their respective
lifecycle. This is one of the reason for its low profits in recent years.
(2): Net profit ratio: It establishes the relationship between net profit and sales.
Helps to judge the overall profitability.

Net Profit
Net profit ratio = --------------------- X 100
Net sales

Particulars 2018 2019 2020 2021

Net Profit 8728 9102 9223 12619

Net Sales 46568 55152 64841 68775

Net Profit ratio 18.74 16.50 14.22 18.34

Notes:
 Net Profit was calculated by deducting operating expenses , interest & finance
charges and tax from the total operating income.

 Total operating income includes income from sale of energy, consultancy and other
incomes.

 Net sales were calculated by deducting IT duty from Gross sales.

 2018 2019 2020 2021

(X-axis: Years, Y-axis: NP Ratio)

Comments:

 Net profit is the number that really matters, as this is the true indication of your
profitability. It will tell you if you are making enough money to make this all worth
your time and effort.

 Net profit for WIPRO has been highest in the year 2018 i.e. 18.74%.

 Thereafter it has continuously declined. It was lowest in the year 2020 i.e. 14.22%.

 Though net profits of WIPRO have declined they are still decent as compared to its
counterparts in industry.

 It also means that business has the capital to grow. If the business is making money,
then it will be able to purchase more inventories that will become best sellers for it,
which will give a higher net profit.

 We can suggest that overheads cost should be controlled as to increase the overall
profitability.
(3): Return on total assets: It is a measure of the profitability of all financial
resources invested in firm’s assets.

Net Profit
Return on total assets = ---------------------- X 100
Total assets

Particulars
2018 2019 2020 2021
Net Profit
8728 9102 9223 12619
Total Assets 97680 112902 140830 161116

Return on total
assets ratio 8.93 8.06 6.54 7.83

Notes:
 Total Assets as per the balance sheet of 2018-2021 is Rs 512528 crores. For our
calculations, we have included current assets, loans & advances instead of net current
assets (e.g. after deducting current liabilities & provisions).

 Net Profit was calculated by deducting operating expenses interest & finance charges
and tax from the total operating income.

 Total operating income includes income from sale of energy, consultancy and other
incomes.
 2021

2020

2019

2018

(X-axis: Years, Y-axis: Returns on total assets)

Comments:

 The Return on Total Assets measures how well the company is actually able to make
intelligent choices on how to spend its money on its assets.

 The greater a company's earnings in proportion to its assets, the more effectively that
company is said to be using its assets.

 Though the ratio is much better than its other counterparts in the industry.

 Returns have been highest in the year 2018 i.e. 8.93% and the same have been lowest
in the year 2020 i.e. 6.54%.

 Here we will also have to take into consideration that the company has undertaken
many new projects who are still under construction or are not used up to their full
capacity.
(4): Return on capital employed (ROCE): Compares earnings with capital
invested in the company.

Profit before Interest and Taxes

ROCE = --------------------------------------------- X 100
Capital employed

Particulars 2018 2019 2020 2021

PBIT
10885 12049 12326 16578
Capital
Employed
557 709 3101 3360
Return on
capital
employed
ratio
1954.2 1699.4 398.4 494.3

Notes:
 Since Wipro belongs to power sector industry where gestation period for new projects
is always more than 2-4 years. Therefore a part of capital gets blocked in such
projects. Thus, relationship cannot be established between that capital and sales (since
it is not generating any sales). That is the reason, such capital do not form part of
capital employed for the purpose of calculation in different financial statements.

 In order to find the exact Return on Capital Employed we need to have data regarding
all projects undertaken, since the required data is not available we have used
information available in the annual report

 PBIT was calculated by deducting operating expenses and depreciation from total
operating income.
 2018 2019 2020 2021

(X-axis: Years, Y-axis: Returns on capital emoployed)

Comments:

 The Return on Capital Employed (ROCE) is one of the most important operating
ratios that can be used to assess corporate profitability.

 ROCE should always be higher than the rate at which the company borrows.
Otherwise any increase in borrowing will reduce shareholders' earnings.

 In case of WIPRO Ltd the Return on capital employed have been more than 10%
during past 4 years, which is commendable as compared to its counterparts in
industry.

 Returns were highest in the year 2018 i.e. 1954.3%

(5): Earnings per share ratio (EPS): It attempts to measure the value of
share of stock by attributing to it a portion of the company’s earnings.

Profit after interest, taxes and preference dividend

EPS = ----------------------------------------------------------------------
Total no. of equity shares

Particulars 2018 2019 2020 2021

PAIT 8728 9102 9223 12619

No. of
equity
shares 8245 8245 8245 8245

Earnings
per share 1.05 1.10 1.11 1.53

Notes:
 Number of Equity shares remains constant for all 4 years and it comprises of
equity shares of each fully paid up.

 PAIT was calculated by deducting operating expenses , interest & finance

charges and tax from the total operating income

 Total operating income includes income from sale of energy, consultancy and
other incomes.
 2018 2019 2020 2021

(X-axis: Years, Y-axis:EPS)

Comments:

 Earnings per share are generally considered to be the single most important variable in
determining a share's price.

 It simply represents the share of net profit after meeting all obligations that is actually
left for the shareholders. Thus representing “earnings” per share.

 It is also a major component used to calculate the price-to-earnings valuation ratio

 While it was least in 2018 i.e. Rs 1.05 per share, it was maximum last year i.e. in 2021
Rs 1.53 per share.

 Growing trend of EPS is definitely good for health of its share value in the market.
(6): Dividend per share: It represents to what extent the profit belongs to the
owners of a company.

Distributed Profit
DPS = ---------------------------------------
Number of Equity Shares

Particulars 2018 2019 2020 2021

Distributed 2789
Profit 2856 2460 3101
No. of equity 8245
Shares 8245 8245 8245
Dividend per
share ratio 0.35 0.30 0.38 0.33

Notes:
 Number of Equity shares remains constant for all 5 years and it comprises of equity
shares of Rs 10 each fully paid- up.

2018 2019 2020 2021

(Y axis :Dividend Per Share Ratio X axis: Years)

Comments:

 The amount of dividend that a stockholder will receive for each share of stock held.

 DPS is the part of earning that is actually distributed among the shareholders after
retaining a part of earning for the purpose of reinvestment.

 It is quite evident from the figures that the DPS is continuously rising which will of
course positively affect the share value in the market for Wipro

 DPS has been highest in the year 2020 i..e. Rs 0.38 per share.

 As compared to the industry the return seems to quite satisfactory from shareholder’s
point of view.

 We suggest that such continuous improvement must be maintained in the coming

financial years.
(7): RETURN ON EQUITY OR RETURN ON NET WORTH

This ratio signifies the return on equity shareholders funds. The profit considered for
computing the ratio is taken after payment of preference dividend.

Net profit after interest and tax

Return on Equity = X 100
Shareholders funds

Particulars 2018 2019 2020 2021

Net Profit
after interest
and tax
8728 9102 9223 12619
Shareholders
fund
62437 67892 73291 80387
Return on 13.97 13.40 12.58 15.69
Equity Ratio
 2018

2019

2020

2021

(X axis :Dividend Per Share Ratio Y axis: Years)

INFERENCES:

Return on shareholder fund determines the profitability from the shareholders point of
view. From the above, it shows that in the year 2018, the company shows 13.97% and in
2019 company show 13.40 of ratio and it has risen in 2020 to 15.69%. This is a clear
indication of overall operation is efficient.
(8): Dividend payout ratio: The payout ratio provides an idea of how well
earnings support the dividend payments. More mature companies tend to have a higher
payout ratio.

Dividend per share

DPR = ----------------------------
Net Profit/Income

Particulars 2018 2019 2020 2021

Dividend per
share 2856 2460 2885 3092
Net
Profit/income 8728 9102 9223 12619
Dividend
payout ratio
0.32 0.27 0.31 0.24
Notes:
 Number of Equity shares remains constant for all 4 years as it comprises of equity
shares of each fully Paid- up.

 Distributed profits includes interim dividend and recommended final dividend for all
4 years

 Number of Equity shares remains constant for all 4 years as it comprises of equity
shares of each fully Paid- up.

2018 2019 2020 2021

(X-axis: Years, Y-axis: DPS)

Comments:

 The payout ratio provides an idea of how well earnings support the dividend
payments. More mature companies tend to have a higher payout ratio.

 It represents the percentage of earnings paid to shareholders in dividends.

 Investors seeking capital growth may prefer lower payout ratio because capital gains
are taxed at a lower rate.

 Investors seeking high current income and limited capital growth prefer companies
with high Dividend payout ratio.
 (B) LIQUIDITY RATIO

(1): Current ratio: It relates current assets to the current liabilities and helps the
analyst in determining a firm’s ability to pay its current liabilities from its current
assets.

Current assets
Current ratio = ------------------------
Current Liabilities

YEAR 2018 2019 2020 2021

CURRENT 30815 35396 37396 41167

ASSETS

CURRENT 7687 10320 17321 22610

LIABILITIES

CURRENT 4.00 3.24 2.15 1.82

RATIO

Adjustment:

 Figures of Current Assets and current Liabilities were derived as shown in the above
tables.
 2018 2019 2020 2021

(X-axis: Years, Y-axis: Current Ratio)

Comments:

 If the current ratio is greater than 2, then that company is generally considered to have
good short-term financial strength. If current liabilities exceed current assets, then the
company may have problems meeting its short-term obligations

 However in the initial years i.e. during 2018 and 2021 current ratio has clearly
exceeded the ideal ratio i.e.4 and 3.24.In 2020 it was 2.15 while in the year 2017 it
was 1.82.

 Significant improvement has been shown in proceeding years and the ratio has been
best in the year 2016 as compared to other three years.

 Thus we can say that considerable decreased has been shown by the company and
same should be continued further.
(2): Quick ratio: This ratio is more rigorous test of a firm’s ability to pay its
obligations. It takes into account the fact that some accounts classified as current assets
are less liquid than others.

Quick assets
Quick Ratio: ----------------------
Quick Liabilities

YEAR 2018 2019 2020 2021

LIQUID ASSETS 27468 31757 33694 37110

LIQUID 7687 10320 17231 22610

LIABILITIES

LIQUID RATIO 3.57 3.07 1.95 1.64

Notes:
 Here Quick assets were calculated by deducting stock from current assets

 Instead of quick liabilities, current liabilities can be used as it is for quick ratio.

2018 2019 2020 2021

(X-axis: Years, Y-axis: Quick Ratio)

Comments:

 An asset is a liquid if it can be converted into cash immediately or reasonably soon

without a loss of value. Cash is the most liquid asset.

 Quick ratio as 1:1 is considered as ideal. However it also depends on the kind of
industry.

 All current assets may not be quickly converted into cash, also their value may differ,
that’s why we have to consider “quick assets”

 As shown by the graph Quick ratio was highest in 2020 i.e. 3.57. This simply means
that assets forming part of quick assets were far more than the required.

 Though by 2019 remarkable decreased has been shown and pile of unutilized quick
assets has been significantly reduced.
(3): Cash Ratio/ absolute liquidity Ratios: It can therefore determine if,
and how quickly, the company can repay its short-term debt.

Cash + Marketable securities

Cash Ratio = -------------------------------------------
Current Liabilities

YEAR 2018 2019 2020 2021

CASH 14459 16185 16141 16867

CURRENT 7687 10320 17231 22610

LIABILITIES

CASH RATIO 1.88 1.56 0.94 0.74

Adjustment:
 Figures of Current Assets and current Liabilities were derived as shown in the above
tables

2018

2019

2020

2021

(Y-axis: Years, X-axis: Cash Ratio)

Comments:

 Marketable securities refer to short term investments.

 Marketable securities are very liquid as they tend to have maturities of less than one
year. Furthermore, the rate at which these securities can be bought or sold has little
effect on their prices.

 The cash ratio is generally a more conservative look at a company's ability to cover its
liabilities than many other liquidity ratios.

 This ratio should not be used in determining company’s value, but simply as one
factor in determining liquidity.

 For WIPRO Ltd it was highest in the year 2020-2021 i.e 1.88 and 1.56 times.

 WIPRO Ltd has quite ambitious plans regarding diversification accordingly it opts to
keep majority of its current assets in the form or cash and bank balances which
includes term deposits earning interests.
 (c) Turnover Ratios

(1): Fixed assets turnover ratio: Fixed-asset turnover is the ratio of sales
(on the profit and loss account) to the value of fixed assets (on the balance sheet).

Net Sales
Fixed assets Turnover Ratio = ---------------------
Net Fixed Assets

Particular 2018 2019 2020 2021

Net Sales 46568 55152 64841 68775
Net Fixed
Assets 66850 72755 45044 62687
Fixed assets
Turnover
Ratio 0.67 0.75 1.43 1.10

Notes:
• Net sales were calculated by deducting IT duty from Gross sales.

• Gross Fixed Assets include tangible assets such as Land, building, Railway siding,
construction equipment etc and intangible assets which includes Right of Use and
Software.

2018

2019

2020

2021

(Y-axis: Years, X-axis: Fixed Assets Turnover Ratio)

Comments:

 The higher the ratio, the better, because a high ratio indicates the business has less
money tied up in fixed assets for each unit of currency of sales revenue.

 A declining ratio may indicate that the business is over-invested in company,

equipment, or other fixed assets.

 For WIPRO Ltd this ratio was highest in the year 2020, i.e. 1.43 times .A high fixed
asset turnover is preferred since it indicates a better efficiency in fixed assets
utilization.

 It was quite low in the year 2018 & 2021 i.e.0.67 and 0.75 times. That shows that
company had more money stuck in fixed assets for each unit of sales revenue.
(2): Capital Turnover Ratio: A company's annual sales divide by
its average stockholders' equity.

Net sales
Capital Turnover Ratio = ---------------------------
Capital Employed

Particulars 2018 2019 2020 2021

Net Sales 46568 55152 64841 68775
Capital
Employed
557 709 3101 3360
Capital
Turnover
Ratio
83.60 77.78 20.90 20.46

Notes:
 Net sales were calculated by deducting IT duty from Gross sales.

 Since Wipro belongs to power sector industry where gestation period for new
projects is always more than 2-4 years, therefore a part of capital gets blocked in
such projects. Thus, relationship cannot be established between that capital and
sales (since it is not generating any sales). That is the reason, such capital do not
form part of capital employed for the purpose of calculation in different financial
statements.

 In order to find the exact Return on Capital Employed we need to have data
regarding all projects undertaken, since the required data is not available we have
used information available in the annual report.
 2018 2019 2020 2021

(X-axis: Years, Y-axis: Capital Turnover Ratio)

Comments:

 The higher the ratio is, the more efficiently a company is using its capital.

 In the case on WIPRO Ltd trends show that capital turnover is continuously rising
from 2020-2021.

 This definitely shows sign of efficient management of capital by the top management.

 Capital turnover was highest during the year 2018 i.e. 83.60 this indicates the
relationship between the capital employed and sales generated that time.
 (3): Value added per employee: Value add per employee is defined by
customer perception of service and then measured using the customer's perception per

employee.

Operating profit +salaries +wages + payroll expenses

Value added per employee = --------------------------------------------------------------------
Average no. of Employees

Particulars
2018 2019 2020 2021
Operating profit
, Employees
remuneration
and Other
expenses
49400 58351 65991 70030
Average no. of
employees
23743 23639 23675 23605
Value added per
employee
2.09 2.46 2.79 2.97

Notes:
 Average number of employees is the figures as available in the annual
report.

 Average number of employees excludes employees in JV’s and

subsidiaries.
 2018
2021
20%
29%

2019

2020 24%

27%

(Value Added Per Employee Ratio)

Comments:

 Value added per employee is defined by customer perception of service and then
measured using the customer's perception per employee.

 In context to WIPRO Ltd trends show the increasing value added per employee, it
shows that even this aspect is now been given due attention.
(4): INVENTORY TURNOVER RATIO..

It indicates the inventories turning into receivables through

sales.

Sales
Inventory turnover ratio = ______________
Inventory

YEAR 2018 2019 2020 2021

SALES 46568 55152 64841 68775

INVENTORY 3347 3639 3702 4057

INVENTORY
TURNOVER 13.91 15.15 17.51 16.95
RATIO

2018 2019 2020 2021

(X-axis: Years, Y-axis: Inventory Turnover Ratio)

INTERPRETATION

This ratio indicates the liquidity of the inventory, that is, how quickly, on the average, the
inventory was sold during the year and consequently the significance of the inventory for the
debt paying purpose. A high stock turnover ratio is generally considered desirable because it
is indicative of efficient performance since an improvement in the ratio shows hat volume of
sales has been either maintained or increased without additional investment in stock.

Inventory turnover of WIPRO for 2018 was 13.91 and 15.15 in 2019. In 2020 the
inventory turnover ratio was high up to 17.51 and it was high in 2021 at 16.95 as compare of
2018 and 2019.
(5): DEBTORS TURNOVER RATIO..

Debtors constitute an important constituent of current assets and therefore the quality of the
debtors to a great extent determines a firm’s liquidity. It shows how quickly receivables or
debtors are converted into cash. In other words, the DTR is a test of the liquidity of the
debtors of a firm. The liquidity of firm’s receivables can be examined in two ways they are
DTR and Average Collection Period.

It indicates the number time debtors turned over each year. Generally the higher value of
debtor’s turnover shows high efficiency to manage the credit management.

Total sales
Debtors turnover ratio = _____________
_________________
Debtors

YEAR 2018 2019 2020 2021

TOTAL 46568 55152 64841 68775

SALES

6651 7924 5832 6096

DEBTOR

DEBTOR
TURNOVER 6.96 11.11 11.28
7.00
RATIO
 2018 2019 2020 2021

(X-axis: Years, Y-axis: Inventory Turnover Ratio)

INTERPRETATION

Debtors constitute an important constituent of current assets and therefore the quality of the
debtors to a great extent determines a firm’s liquidity. It shows how quickly receivables or
debtors are converted into cash. In other words, the DTR is a test of the liquidity of the
debtors of a firm. The liquidity of firm’s receivables can be examined in two ways they are
DTR and Average Collection Period. .The higher the ratio, the better it is, since it would
indicate that debts are being collected promptly.

In the year 2017 debt is 7.00 and 6.96 in 2019 but in 2020-2021 debt increased 11.11 to
11.28. The previous year came downwards.
(6): DEBT COLLECTION PERIOD..
Debtor’s collection period is nothing but the period required to collect the money from the
customers after the credit sales. A speed collection reduces the length of operating cycle and
vice versa. The more quickly the customers pay, the less risk from bad debts, the lower the
expenses of collection and more liquid the nature of this asset.

It indicates the speed with which debts are collected.

Days/months in a year
Debt collection period = _______________________________
Debtor’s turnover ratio

YEAR 2018 2019 2020 2021

DAYS 365 365 365 365

DEBT
TURNOVER 6.96 11.11 11.28
7.00
RATIO

DEBT
COLLECTION
52 55 33 32
PERIOD
 2018 2019 2020 2021

(X-axis: Years, Y-axis: Debt Collection Period)

INTERPRETATION
The debt collection period of WIPRO in the 2018 was 52 days and 55 days in 2019 but in
2020 it was decreased and be 33 days and it also decreased in 2021 to be 32 days. Standard
Debt Collection Period of a firm is less than 90 days. But, above tables consists of decreased
of DCP in rapidly.
 (D): SOLVENCY RATIOS

(1): Proprietary Ratio: Proprietary ratio refers to a ratio which helps the creditors of
the company in seeing that their capital or loans which the creditors have given to the
company are safe.
Shareholder’s Funds
Proprietary Ratio = ---------------------------------
Total assets

Particular 2018 2019 2020 2021

Shareholders’
Funds 62437 67892 73291 80387
Total Assets 97680 112902 140830 161116

Proprietary
Ratio 0.63 0.60 0.52 0.49

Notes:
 Shareholder’s funds for all 4 years includes the amount of share capital i.e. Rs
284007 crores (constant for all 4 years) and Reserves & Surplus.

 Reserves & Surplus includes capital reserved. Bonds redemption reserves, General
Reserve & surplus in P& L account.

 Total Assets as per the balance sheet of 2018-19 is Rs 210582 crores. For our
calculations, we have included current assets, loans & advances instead of net current
assets ( i.e after deducting current liabilities & provisions)

 Therefore, Total assets include Net Block, Capital Work- in- Progress. Construction
Stores & advances, Investments, Current assets. Loans & Advances.
 2018

2019

2020

2021

(Y-axis: Years, X-axis: Proprietary Ratio)

Comments:

 A higher proprietary ratio would imply that company has enough capital to repay its
creditors whenever any such demand is made by the creditors.

 A lower proprietary ratio would imply that company is not in a position to pay all of
its creditors and therefore a low proprietary ratio is a cause of concern for the
creditors of the company.

 For WIPRO Ltd as per the trend of last 4 years this ratio is continuously declining.

 It was least in last year i.e. in 2021, 0.49. Still company is always in a position to
repay its creditors comfortably.

 This ratio for WIPRO Ltd is good as compared to its counterparts in the industry.

 This helps the creditors of the company in seeing that their capital or loans which the
creditors have given to the company are safe.
(2) Debt-Equity Ratio: This describes the relationship between the lenders
contribution for each rupee of the owners’ contribution.

Total long Term Debt

Debt- Equity Ratio = -----------------------------
Shareholder’s Funds

Particulars 2018 2019 2020 2021

Total long
term debt 37797 43188 45908 53253
Shareholders
funds 62437 67892 73291 80387
Debt-Equity
Ratio 0.60 0.63 0.62 0.67

Notes:
 Total Long term loan as per the Balance Sheet 2018-19 was Rs 80985 crores.

 Shareholder’s funds for all 4 years includes the amount of share capital i.e Rs 284007
crores (constant for all 4 years) and Reserves & Surplus.

 Reserves & Surplus includes capital reserves, Bonds redemption reserves, General
Reserve & surplus in P& L account.
 2018 2019 2020 2021

(X-axis: Years, Y-axis: Debt Equity Ratio)

Comments:
 A high debt/equity ratio generally means that a company has been aggressive in
financing its growth with debt.

 This can result in volatile earnings as a result of the additional interest expense.

 The cost of this debt financing may outweigh the return that the company generates
on the debt through investment and business activities and become too much for the
company to handle. This can lead to bankruptcy, which would leave shareholders with
nothing.

 However if a lot of debt is used to finance increased operations (high debt to equity),
the company could potentially generate more earnings than it would have without
this outside financing.

 Regarding WIPRO Ltd this ratio is continuously increasing for last 4 years.

 It would have been considered ideal if the company would have maintained ratio
nearly 70:30.

 It was highest during last year i.e. 2021, e.g.0.67. So the company has ample scope to
introduce more debt in its structure. For a matter of fact it should introduce more debt than it
is currently using.
(3): Capital Gearing Ratio: A general term describing a financial ratio that
compares some form of owner's equity (or capital) to borrowed funds.

Total long term debt

Capital Gearing Ratio = --------------------------- X 100
Equity share capital

Particulars 2018 2019 2020 2021

Total long
37797 43188 45908 53253
term debt
Equity share
capital 8245 8245 8245 8245
Capital
Gearing Ratio 458.42 523.80 556.79 645.88

Notes:
 Here Fixed Income Securities means: Total Long Term Debt + Preference Share
Capital

 Since Preference share capital is nil amount remains same as Total Long Term Debt.

 Equity share Capital comprises of 8245464400 equity share of each fully paid up.

 Total Long term loan as per the Balance Sheet 2018-20 was Rs 80985 crores.
 2018 2019 2020 2021

(X-axis: Years, Y-axis: Capital Gearing Ratio)

Comments:

 The higher a company's degree of leverage, the more the company is considered risky.

 It is the proportion between the fixed interest or dividend bearing funds and non fixed
interest or dividend bearing funds.

 It must be carefully planned as it affects the company's capacity to maintain a uniform

dividend policy during difficult trading periods..

 For WIPRO Ltd the ratio is continuously increasing from the year 2018. This is good
as it shows reducing risk. It reveals the suitability of company's capitalization

 It was highest in the year 2019 i.e. 645.88 and gradually declined to just 458.42 by
2017.
(4): Interest Coverage Ratio: The interest coverage ratio is calculated by dividing a
company's earnings before interest and taxes (EBIT) of one period by the company's interest
expenses of the same period.

EBIT
Interest coverage Ratio = ----------------------------------------------------
Interest charges on long term borrowing

Particulars
2018 2019 2020 2021
EBIT
10885 12049 12326 16578
Interest charges
on long term
borrowing 9079 9910 9057 9704
Interest Coverage
Ratio 1.19 1.21 1.36 1.70

2018 2019 2020 2021

(X-axis: Years, Y-axis: Interest Coverage Ratio

Comments:

 The lower the ratio, the more the company is burdened by debt expense. When a
company's interest coverage ratio is 1.5 or lower, its ability to meet interest expenses
may be questionable.

 The interest coverage ratio is considered to be a financial leverage ratio in that it

analyzes one aspect of a company's financial viability regarding its debt.

It was highest in the year 2021 i.e 1.70 times and lowest in the year 2018 i.e 1.19 times.
(5): Debt to total funds ratio: This ratio gives same indication as the debt equity
ratio as this is a variation of debt equity ratio. This ratio is also known as solvency ratio. This
ratio is the relationship between long term debts and total long term funds.

Long Term Debts

Debt to Total Funds Ratio =
Total Funds

Particulars 2018 2019 2020 2021

Long Term
Debts
37797 43188 45908 53253
Total Funds
62437 67892 73291 80387
Debt to Total 0.60 0.63 0.62 0.66
Funds Ratio

2018 2019 2020 2021

INFERENCES:

During the year 2018 the debt to total funds ratio is 0.60 times and it was increased
0.63 in 2019. And 2020 again it had an decreased in 0.62.In the company’s sales comparing
to previous year 2020-2021 and 2018 it increased in 0.66.
 Chapter -6

FINDINGS OF THE STUDY

 Findings of the Study

 The total income of Wipro For the year 2019-20 increased by 16.59% to Rs.

57399.49 crores from Rs. 49233.88 crores during 2018-2019.

 The net profit after tax increased from Rs 9102.59 crores from Rs 8728.20 crores
registering a growth of 5.29 % over last year.

 Employees remuneration and benefits have increased by 15% from Rs 2,412.36

crores in financial year 2018-19 to Rs 2,789.71 crores in the year 2019-20 of
which Rs 69.48 crores is due to additional commercial capacity.

 During the year 2018-19, company realized 100% payment for current bills raised
for sale of power for the 8th successive year.

 It was observed that a major portion of current assets comprised of Cash and Bank
balances.

 The company has established a State- of-the-art IT enabled Project Monitoring

Centres (PMC) for facilitating fast track project implementation.

 The supply of power improved during the year 2018-19 owing to increase in
capacity in coal as well as gas based companys.

 Wipro has always discharged its social responsibility as a part of its Corporate
Governance Philosophy. It follows the global practice of addressing CSR issues in
an integrated multi stake holder approach covering the environment and social
aspects.
 Chapter -7

CONCLUSION

&

SUGGESTIONS

Suggestions & Conclusion

 Gross Profit ratios have continuously gone under various fluctuations in the last five
years. However the ratios are more than the industry standard. Gross profit ratio was
 lowest last year i.e. 2021, 31.95% this indicates that overheads cost has not been
controlled as required. Such low margin indicates that the business is unable to
control its production cost.

 Majority of the projects undertaken by WIPRO are in growth stage or their respective
lifecycle. This is one of the reasons for its low profits in recent years.

 Net profit is the number that really matters, as this is the true indication of
profitability. The total income of Wipro For the year 2020-21 increased by 16.59% to
Rs 57,399.49 crores from Rs 49,233.88 crores during 2019-20.

 Net profit ratio for WIPRO has been highest in the year 2018 i.e. 21.05%. Thereafter
it has continuously declined. It was lowest in the year 2021 i.e. 16.58%.

 Though net profits ratio of WIPRO have declined they are still decent as compared
to its counterparts in industry.

 In the initial years i.e. during 2018 and 2017 current ratio has clearly exceeded the
ideal ratio i.e. 2:1. In 2018 it was 3.22:1 while in the year 2016 it was 3.11:1.
Significant improvement has been shown in proceeding years and the ratio has been
best in the year 2019 as compared to other four years, as during this it was 2.70:1 that
is quite close to the ideal ratio.

 In case of WIPRO Ltd this returns on total assets ratio is continuously declining
which shows that return as compared to the assets is declining.

 Wipro belongs to power sector industry where gestation period for new projects is
always more than 3-5 years, therefore a part of capital gets blocked in such projects.

In last financial year debt has registered a growth of 14% which seems to be matching

with company’s rate of diversification.

The debt-equity ratio at the end of financial year 2018-19 increased to 0.64 from 0.61 at
the end of previous financial year.

 The amount raised through term loans, bonds and foreign currency borrowings
was used for capital expenditure and re-financing while amount raised through
deposits have been used for working capital purposes.
 Looking at the profitability, size and promising future prospects , we can say that
for Wipro there is still a room for including more of debt into its capital structure
as debt is a cheaper source of finance so thereby it would lead to more of
profitability.

 For WIPRO Ltd the Fixed assets turnover ratio was highest in the year 2017 i.e.
1.41. Company should put in efforts to increase it further as a higher fixed asset
turnover indicates better efficiency in fixed assets utilization.

 Trends show the increasing value added per employee, it shows that even this
aspect is now been given due attention.

 More earnings can be retained for fast-track implementation of new projects with
ultimate of increasing net worth. During all five years more than 60% of net
earnings after tax is retained with an aim efficient reinvestment which will fetch
better returns.

 The growth of company through capacity addition and strategic diversification of

its operations would lead to increase in shareholders’ value.
 ANNEXURE

QUESTIONNAIRE

ASSESSMENT OF WORKING CAPITAL REQUIREMENT

 FORM II : OPERATING STATEMENT

----------------------------------------------------

Sheet 1

Amount
in Lakhs.

Branch Wipro

As per profit and loss account actuals/

estimates for the year ending 31st March

WIPRO 2018 2019 2020 2021

Aud Aud Est. Proj

1 GROSS SERVICE SALES I II III IV

i. Domestic service sales 871.45 1458.04 1529.71 2206.00

ii. Export service sales 0.00 0.00 0.00 0.00

Add other revenue income

Job Work 3.73 3.14 5.00 8.50

Total 875.18 1461.18 1534.71 2214.50

2 Less service duty 107.19 137.86 129.71 206.00

Deduct other services

3 Net sales services 767.99 1323.32 1405.00 2008.50

4 % age rise (+) or fall (-) in net 75.59 72.31 6.17 42.95

sales service compared to previous

year (annualized)

5 Cost of Service Sales

i.) Services (including 476.99 682.05 874.00 1210.00

(a) imported

(b) Indigenous 476.99 682.05 874.00 1210.00

ii) Other Services 72.87 111.85 139.00 193.00

 (a) Imported

(b) Indigenous 72.87 111.85 139.00 193.00

iii) Power and fuel 12.53 17.34 21.85 31.25

iv) Direct labour 8.34 61.24 74.25 78.75

(Firm wages & salary)

v) Other services. Expenses 64.42 99.52 124.00 172.00

vi) Depreciation 9.56 18.45 18.60 18.60

vii) SUB TOTAL (I TO VI) 644.71 990.45 1251.70 1703.60

viii) ADD: Opening Service) 72.46 54.38 78.80 148.25

Sub-total 717.17 1044.83 1330.50 1851.85

Form II : Sheet 2 2018 2019 2020 2021

Vipin H Sharma & Associates Aud Aud Est. Proj

ix) Deduct : Closing Services

Process 54.38 78.80 148.25 205.75

 x) Cost of Services 662.79 966.03 1182.25 1646.10

xi) Add : Opening Services

finished service 3.19 37.04 26.93 71.35

SUB-TOTAL 665.98 1003.07 1209.18 1717.45

xii) Deduct closing services of

finished service 37.04 26.93 71.35 100.88

xiii) SUB-TOTAL (Total cost of Sales) 628.94 976.14 1137.83 1616.57

6 Service Selling general

Expenses 82.59 143.09 158.00 190.00

7 SUB-TOTAL (5+6) 711.53 1119.23 1295.83 1806.57

8 Operating profit before interest 56.46 204.09 109.17 201.93

( 3-7 )

9 Interest 12.31 60.23 76.17 81.20

10 Operating profit after interest (8-9) 44.15 143.86 33.00 120.73

11 (i) Add other non-operating income

(a) Bank Interest on FDRs 0.15 1.43 2.00 2.00

(b)

(c)

(d)

Sub-total ( income ) 0.15 1.43 2.00 2.00

(ii) Deduct other non-operating expenses

(a) Direct expense including 0.09 0.00 0.00 0.00

all book entries written off

(b)

Sub-total ( expenses ) 0.09 0.00 0.00 0.00

(iii) Net of other non-operating 0.06 1.43 2.00 2.00

income/expenses
 12 Profit before tax/loss[10+11(iii)] 44.21 145.29 35.00 122.73

13 Provision for taxes 17.13 12.62 8.05 30.68

14 Prior Years Adjustment(if any)# 0.00 0.00 0.00 0.00

15 Net profit/loss for the year ( 12-13 ) 27.08 132.67 26.95 92.05

16 (a) Equity dividend paid-amt

(Already paid+ B.S. provision)

(b) Dividend Rate

17 Retained profit ( 14-15 ) 27.08 132.67 26.95 92.05

18 Retained profit/Net profit (% age) 100.00 100.00 100.00 100.00

# (-)ve for expense/provisions and (+) ve for gains

FUND FLOW STATEMENT

FUND FLOW (DETAILED)

 WIPRO Lakhs.

2018 2019 2020 2021

1 SOURCES Aud Aud Est. Proj

a. Net Profit (After Tax) 27.08 132.67 26.95 92.05

b. Depreciation 9.55 18.45 18.60 18.60

C Increase in Capital (incl. Share Premium) 0.00 0.00 100.00 0.00

d. Increase In TL. Incl.public deposits 46.75 65.63 52.04 0.00

e. Decrease in

i.) Fixed Assets 0.00 0.00 0.00 0.00

ii.) Other Non Current Assets 3.94 0.00 0.00 60.00

F Others 2.20 7.41 0.00 0.00

g. Total 89.52 224.16 197.59 170.65

2 USES

a. Net Loss 0.00 0.00 0.00 0.00

b. Dec.in Term Liab. incl. Pub.Dep. 0.00 0.00 0.00 24.53

c. Increase in

i) Fixed Assets 86.19 27.54 30.00 0.00

ii) Other Non current assets 0.00 11.98 56.50 0.00

d. Dividend Payment 0.00 0.00 0.00 0.00

E Others 0.00 0.00 0.00 0.00

F Total 86.19 39.52 86.50 24.53

Movement of WIPRO

Lakhs.

2018 2019 2020 2021

 Particulars Aud Aud Est. Proj

Opening balance 84.93 108.61 248.69 375.64

1 Add.

I Profit/(-)Loss after Tax 27.08 132.67 26.95 92.05

ii Increase in Capital 0.00 0.00 100.00 0.00

iii Dec./(-) Inc.in Intangible Assets 0.09 0.00 0.00 0.00

iv Inc../(-) \ Dec.in Reserves 2.20 7.41 0.00 0.00

v. Adjust prior year expenses -0.07 0.00 0.00 0.00

2 Less

Div Paid(Incl.Div.Tax)/ Withdrawals 0.00 0.00 0.00 0.00

TNW 114.30 248.69 375.64 467.69

FUND FLOW (DETAILED)

WIPRO Lakhs.

2018 2019 2020 2021

1 SOURCES Aud Aud Aud Est. Proj

a. Net Profit (After Tax) 0.00 132.67 26.95 92.05

b. Depreciation 9.55 18.45 18.60 18.60

C Increase in Capital (incl. Share Premium) 0.00 0.00 100.00 0.00

d. Increase In TL. Incl.public deposits 0.00 65.63 52.04 0.00

e. Decrease in

i.) Fixed Assets 0.00 0.00 0.00 0.00

ii.) Other Non Current Assets 0.00 0.00 0.00 60.00

F Others 0.00 7.41 0.00 0.00

g. Total 9.55 224.16 197.59 170.65

2 USES

a. Net Loss 5.69 0.00 0.00 0.00

b. Dec.in Term Liab. incl. Pub.Dep. 0.00 0.00 0.00 24.53

c. Increase in

i) Fixed Assets 0.00 27.54 30.00 0.00

ii) Other Noncurrent assets 0.00 11.98 56.50 0.00

d. Dividend Payment 0.00 0.00 0.00 0.00

E Others 0.00 0.00 0.00 0.00

F Total 5.69 39.52 86.50 24.53

FUNDS FLOW STATEMENT

(Summary)

Lakhs

2018 2019 2020 2021

Particulars Aud Aud Est. Proj

I Long Term Surplus/Deficit 3.86 184.64 111.09 146.12

Ii Increase/decrease in Curr. Assts. 0.00 489.58 -59.48 227.08

-
Iii Inc./Dec. in CL other than BB 0.00 183.62 233.87 80.96

Iv Inc./Dec. in WC Gap 0.00 305.96 174.39 146.12

-
V Net Surplus (+) Deficit (-) 3.86 121.32 -63.30 0.00

Vi Inc./Dec. in Bank Borrowings 0.00 242.16 63.30 0.00

FUNDS FLOW STATEMENT

Lakhs
 2018 2019 2020 2021

Particulars Aud Aud Est. Proj

Long Term Sources 9.55 224.16 197.59 170.65

Long Term Uses 5.69 39.52 86.50 24.53

Surplus/Deficit 3.86 184.64 111.09 146.12

Bibliography

Published sources

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Chand and Sons Pvt Ltd, New Delhi, Pg. no. 107-134
  Goel, D.K. ,2007, D.K. Goel’s Accountancy, Arya Publications, New Delhi, Pg. no.
84-102

 Whittington, G. (1980), "Some basic properties of accounting ratios", Journal of

Business Finance and Accounting 7/2, Pg. no. 219-232.

Ittelson, Thomas,2008, Financial Statements, Bostan, ch-13 pg num 193-198

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http://www.investopedia.com/terms/r/ratioanalysis.asp

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http://www.googobits.com/articles/p2-596-reading-financial-statements-with-an-
analytical-eye.html

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http://lipas.uwasa.fi/~ts/ejre/ejre.html

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http://ideas.repec.org/a/eee/jomega/v24y1996i3p229-244.html

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http://ideas.repec.org/a/ids/ijfsmg/v1y2006i2p141-154.html

 About “Returns on capital employed”, Retrieved June 24.2012

http://en.wikipedia.org/wiki/Return_on_capital_employed