ratio analysos of wipro ltd have been discussed. you may also find suggestions and feedback at the end of the presentation

1. RatioAnalysisofWipro
Mayank Singhal(A3146915058)
Daler Singh (A3146915069)

2. GROSS PROFIT RATIO
Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04
Gross Profit 14240.5 11674.4 7838.75 5489.61 3873.99
sales17,492.60 13683.9 10227.12 7233.16 5134.89
GP Ratio 81.40871 85.31486 76.6467 75.89504 75.444459

4. NET PROFIT RATIO
Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04
sales 17,492.60 13683.9 10227.12 7233.16 5134.89
net profit 3,715.60 3254.5 2483.9 1855.25 1142.45
Net Profit
Ratio 21.240982 23.78342 24.28738 25.64923 22.248773

6. OPERATING RATIO
Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04
sales 17,492.60 13683.9 10227.12 7233.16 5134.89
cost of
goods sold 3,252.10 2009.5 2388.37 1743.55 1260.9
operating
expenses 10,524.90 8,419.90 5354.86 3671.48 2745.52
Operating
ratio 78.76 76.22 75.71 74.86 78.02

8. DEBT EQUITY RATIO
Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04
Debt 3,822.40 238.00 50.16 62.09 100.69
Equity 15,433.10 9,554.90 6,478.10 4,955.74 3,608.28
Debt Equity
ratio 0.2476755 0.024909 0.007743 0.012529 0.0279053

10. CURRENT RATIO
Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04
Current Assets 12,058.10 6,338.40 4,076.68 2,672.86 2,038.41
Current
Liabilities 4,742.30 3,767.60 2,788.39 1,734.83 1,680.89
Current Ratio 2.5426692 1.682344 1.462019 1.540704 1.2126968

12. FIXED ASSET T.O RATIO
Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04
cost of goods
sold 3,252.10 2009.5 2388.37 1743.55 1260.9
fixed Assets 8,117.30 6,984.10 5,189.81 4,017.71 3,250.76
Fixed Asset
T.O ratio 0.4006381 0.287725 0.460204 0.433966 0.3878785

14. RETURN ON NETWORTH
Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04
Net Profit 3,715.60 3254.5 2483.9 1855.25 1142.45
Equity 15,433.10 9,554.90 6,478.10 4,955.74 3,608.28
Return On
Networth 24.075526 34.06106 38.34303 37.43639 31.6619

16. 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 299.8 120.5 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 532.1 0 171.05 107.15 77.02
Adminstrative
expenses 2,583.70 2,655.40 904.78 685.8 1,804.06
Expenses
capitalised 0 0 0 -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 326.9 288.7 113.59 75.44 88.05
Adjusted PBDIT 4,042.50 3,543.20 2,597.49 1,930.68 1,230.50
Financial expenses 116.8 7.2 3.13 5.57 3.52
Depreciation 456 359.8 292.26 185.97 151.6
Other write offs 0 0 0 0 0

17. Adjusted PBT 3,469.70 3,176.20 2,302.10 1,739.15 1,075.39
Tax charges 406.4 334.1 286.1 255.15 141.27
Adjusted PAT 3,063.30 2,842.10 2,016.00 1,484.00 934.12
Non recurring items 0 0 38.33 17.88 3.87
Other non cash
adjustments 0 0 -33.85 -7.06 -23.11
Reported net profit 3,063.30 2,842.10 2,020.48 1,494.82 914.88
Earnigs before
appropriation 3,063.30 2,842.10 2,020.48 1,494.82 914.88
Equity dividend 876.5 873.7 712.88 351.79 675
Preference dividend 0 0 0 0 0
Dividend tax 148.9 126.8 99.98 49.34 86.48
Retained earnings 2,037.90 1,841.60 1,207.62 1,093.70 153.39

18. Sources of funds
Owner's fund
Equity share capital 292.3 291.8 285.15 140.71 46.55
Share application
money 58 0 7.49 1.21 0
Preference share
capital 0 0 0 0 0
Reserves & surplus 11,260.40 9,025.10 6,135.30 4,751.73 3,461.04
Loan funds
Secured loans 4 23.2 45.06 21.59 94.75
Unsecured loans 3,818.40 214.8 5.1 40.5 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 0 0 0 0 0
Less : accumulated
depreciation 0 0 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 1,335.00 989.5 612.36 250.24 139.71
Investments 4,500.10 4,348.70 3,459.20 2,859.51 2,456.03

19. 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 0 0 0 0 0
Total 15,433.10 9,554.90 6,478.10 4,955.74 3,608.28
Notes:
Book value of unquoted
investments 0 0 514.23 782.71 654.63
Market value of quoted
investments 0 0 2,956.87 2,088.71 1,803.84
Contingent liabilities 749.9 318.4 509.18 676.65 387.99
Number of equity
sharesoutstanding
(Lacs) 14615 14590 14257.54 7035.71 2327.59

20. FINDINGS AND SUGGESTIONS
FINDINGS
• Though the sales has been continuously increased from past 3 years but the proportionate
expenditure is also rising so overall not making any huge effect on net profit of this company.
• Here the in 2005 company has reinvest profit for business expansion it is good shine for the
company.
• The total expenditure is near by 80% of total income in every year. Every year PBT is near by
20% of total income.
• Fixed assets are efficiently utilized by the company due to which the profit of the company is
increasing every year.
• Liabilities are increasing rate it mean company has to developed business. And purchase raw
material on credit basis.
• Company has enough cash in hand so that in any condition company can take Any Financial
decision easily.
• All the years has quick ratio exceeding 1 , the firm is in position to meet its immediate
obligation in all the years.
• GP Ratio shows how much efficient company is in Production.

21. SUGGESTION
The company’s future plans for expansion seem clear due to increased investment in Fixed
Assets .Efficient use of these Assets has enabled the company to observe an increased profit.
Though the company’s sale is continuously rising but the net profit is not so much increase d so
management should take so me steps to decrease its expenses.
Company should try its best to increase sales and profit. The profit margin ratio shows
decline in current year so that company should try to increase profit after tax
Current ratio is very good it is 2.13:1 so company has fully utilize cash liquidity for business
development.

22. CONCLUSION
According to this research we find that The company's overall position is at a good
position. The company achieves sufficient profits in past four years. Fixed assets are
efficiently utilized by the company due to which the profit of the company is increasing
every year. The long term solvency of the company is good. The company maintains
low liquidity to achieve high profitability .The company distributes dividend every year
to its shareholders. Inventory turnover ratio is increased as compared to after that all
year so management should take care about good efficiency of stock management.
Net Fixed Assets Turnover Ratio is increasing year by year because of Sale is increasing
continuously and Though the company’s sale is continuously rising but the net profit is
not so much increased so management should take so me steps to decrease its
expenses