Comparative Analysis of Financial Statement OfIT industries INTERNATIONAL ACCOUNTING PRACTICES GRADUATE SCHOOL OF MANAGEMENT STUDIES Comparative Analysis Introduction of IT industry TCS Infosys Limited HCL Technologies Wipro Ltd Tech Mahindra Ltd. Comparative of company Gujarat Technological University, Ahmadabad Academic Year: 2018-20

1. 1
INTERNATIONAL
ACCOUNTING PRACTICES (IAP)
A
Project Report
On
Comparative Analysis of Financial Statement
Of
IT Industries
Submittedto-
Dr .Kaushal Bhatt
Assistant professor GSMS
GTU
Submittedby-
Kacha Avani(20)
Veerani Pranav (60)
Group No. 16
GRADUATE SCHOOL OF MANAGEMENT STUDIES
Gujarat Technological University,
Ahmadabad
Academic Year: 2018-20

2. 2
INDEX
NO. PARTICULAR PAGE
NO.
1. ComparativeAnalysis 3
2. Introduction of ITindustry 4
3. TCS 5
4. InfosysLimited 9
5. HCL Technologies 13
6. Wipro Ltd 16
7. Tech Mahindra Ltd. 20
8. Comparativeof company 24

3. 3
Comparative Analysis
Describecomparative analysis as comparison analysis. Usecomparison analysis
to measure the financial relationships between variables over two or more
reporting periods.Businessesusecomparativeanalysis as a way to identify their
competitive positions and operating results over a defined period. Larger
organizations may often comprise the resources to perform financial
comparative analysis monthly or quarterly, but it is recommended to perform
an annual financial comparison analysis at a minimum.
 Provides a comparison of an entity's financial performanceover multiple
periods, so that you can determine trends. The statements may also
reveal unusualspikes in the reported information that can indicate the
presenceof accounting errors.
 Provides a comparison of expenses to revenues and the proportions of
various items on the balance sheet over multiple periods. This
information can be usefulfor cost management purposes.
 May be usefulfor predicting futureperformance, though you should rely
more on operational indicators and leading indicators than on historical
performancefor this type of analysis.

4. 4
IT INDUSTRY
Information technology in India is an industry consisting of two major
components: IT services and business process outsourcing (BPO).
 The sector hasincreased its contribution to India'sGDPfrom 1.2%in 1998
to 7.7% in 2018.
 Accordingto NASSCOM,thesectoraggregated revenues of US$160billion
in 2018.
 with export revenue standing at US$99 billion and domestic revenue at
US$48 billion, growing by over 13%. The United States accounts for two-
thirds of India's IT services exports.
 India's IT Services industry was born in Mumbai in 1967 with the
establishment of the Tata Group in partnership with Burroughs.
 Bangalore is known as the Silicon Valley of India.

5. 5
TCS – Tata Consultancy Services
Tata Consultancy Services, founded in the year 1968 is headquartered in
Mumbai, India.
 CEO: Rajesh Gopinathan
 Founded: 1968
 Headquarters: Mumbai
 Founders: J. R. D. Tata, F. C. Kohli
 Parent organization: Tata Group
 Subsidiaries: CMC, TCS China, Computational Research Laboratories
 Tata Consultancy Services Limited (TCS) is an Indian multinational
information technology (IT) service, consulting company headquartered
in Mumbai, Maharashtra.
 Itis part of the Tata Group and operates in 46 countries.
 TCS is one of the largest Indian companies by market capitalization.
 TCS is now placed among the most valuable ITservices brands
worldwide.
 In 2015, TCS is ranked 64th overall in the Forbes World's Most
InnovativeCompanies ranking, making it both the highest-ranked IT
services company and the top Indian company.
 Itis the world's 2nd largestITservices provider.
 As of 2017, it is ranked 10th on the Fortune India 500 list. In April 2018,
TCS became the firstIndian ITcompany to breach $100 billion market
capitalization

6. 6
Comparative study of TATA consultancy service’s
Balance sheet
Parameter MAR'18
(₹ Cr.)
MAR'17
(₹ Cr.)
YoY
%Change
EQUITY AND LIABILITIES
Sources Of Funds
Total Share Capital 191.00 197.00 -3.05%
Equity Share Capital 191.00 197.00 -3.05%
Reserves 75,675.00 77,825.00 -2.76%
Networth 75,866.00 78,022.00 -2.76%
Secured Loans 39.00 44.00 -11.36%
Unsecured Loans 181.00 200.00 -9.5%
Total Debt 220.00 244.00 -9.84%
Total Liabilities 76,086.00 78,266.00 -2.79%
Application Of Funds
Gross Block 20,338.00 9,231.00 120.32%
Less: Accum. Depreciation 10,898.00 0.00 100%
Net Block 9,440.00 9,231.00 2.26%
Capital Work in Progress 1,238.00 1,477.00 -16.18%
Investments 37,259.00 42,930.00 -13.21%
Inventories 25.00 21.00 19.05%
Sundry Debtors 18,882.00 16,582.00 13.87%

7. 7
Cash and Bank Balance 3,487.00 1,316.00 164.97%
Total Current Assets 22,394.00 17,919.00 24.97%
Loans and Advances 20,725.00 18,201.00 13.87%
Total CA, Loans & Advances 43,119.00 36,120.00 19.38%
Current Liabilities 14,773.00 11,387.00 29.76%
Provisions 197.00 105.00 15.64%
Total CL & Provisions 14,970.00 11,492.00 30.26%
Net Current Assets 28,149.00 24,628.00 14.30%
Total Assets 76,086.00 78,266.00 -2.79%
Contingent Liabilities 13,949.00 16,259.00 -14.21%
Book Value (Rs) 396.31 395.96 0.09%

8. 8
 As we show in chat reserves aredecreases in 2018 compareto 2017 it is
77825 to 75875. So reserves aredecreases by 2.76%.
 Investmentlike reserves also decreases in 2018 it is 42930 to 37259 . so
ultimately 13.21% decreases come.
 Loans and advances is increases compare to 2017 in 2018 by 13.87%.
 Currentassets also increases by 24.97% in 2018.
 We conclude that TATA consultancy reduces their reserves for payment
of dividend to their shareholders.
 By taking loans TATA consultancy investmoney in currentassets.
Infosys Limited
0
10000
20000
30000
40000
50000
60000
70000
80000
Reserves Investment Loans & Advances Current Assets
75875
37259
20725 22394
77825
42930
18201 17919
Comparision of two years
2018 2017

9. 9
Infosys Limited (formerly Infosys Technologies Limited) is an Indian
multinational corporation that provides business consulting, information
technology and outsourcing services. It has its headquarters in Bengaluru,
Karnataka, India.
 Infosys is the second-largest Indian IT company by 2017 revenues and
596th largest public company in the world in terms of revenue.
 On June 29, 2018 its market capitalisation was $42.23 billion.[6] The
credit rating of the company is A- (rating by Standard & Poor's)
 Type : Public
 Traded as : BSE: 500209
 Industry : IT services, IT consulting
 Founded : 7 July 1981; 37 years ago
 Founder : N. R. Narayana Murthy
Nandan Nilekani
S. Gopalakrishnan
S. D. Shibulal
K. Dinesh
N. S. Raghavan
Ashok Arora
 Headquarters : Bengaluru, Karnataka, India
 Area served : Worldwide
 Key people : Nandan Nilekani (Chairman)
Comparative study of Infosys Ltd.

10. 10
Balance sheet
Parameter MAR'18
(₹ Cr.)
MAR'17
(₹ Cr.)
YoY
%Change
EQUITY AND LIABILITIES
Share Capital 1,092.00 1,148.00 -4.88%
Total Reserves 62,280.00 66,749.00 -6.70%
Shareholder's Funds 63,502.00 68,017.00 -6.64%
Deferred Tax Assets / Liabilities -623.00 -346.00 80.06%
Other Long Term Liabilities 166.00 82.00 102.44%
Long Term Provisions 42.00 0.00 100.00%
Total Non-Current Liabilities -415.00 -264.00 57.20%
Current Liabilities
Trade Payables 738.00 269.00 174.35%
Other Current Liabilities 8,512.00 7,405.00 14.95%
Short Term Provisions 2,412.00 4,112.00 -41.34%
Total Current Liabilities 11,662.00 11,786.00 -1.05%
Total Liabilities 74,749.00 79,539.00 -6.02%
ASSETS
Gross Block 18,143.00 16,240.00 11.72%
Less: Accumulated Depreciation 8,986.00 7,635.00 17.69%
Net Block 9,157.00 8,605.00 6.41%
Capital Work in Progress 1,442.00 1,247.00 15.64%
Non-Current Investments 11,993.00 15,334.00 -21.79%
Long Term Loans & Advances 7,733.00 6,237.00 23.99%
Other Non-Current Assets 334.00 434.00 -23.04%
Total Non-Current Assets 30,659.00 31,857.00 -3.76%

11. 11
Current Assets Loans & Advances
Currents Investments 5,906.00 9,643.00 -38.75%
Sundry Debtors 12,151.00 10,960.00 10.87%
Cash and Bank 16,770.00 19,153.00 -12.44%
Other Current Assets 6,457.00 4,477.00 44.23%
Short Term Loans and Advances 2,806.00 3,449.00 -18.64%
Total Current Assets 44,090.00 47,682.00 -7.53%
Net Current Assets (Including Current Investments) 32,428.00 35,896.00 -9.66%
Total Current Assets Excluding Current Investments 38,184.00 38,039.00 0.38%
Total Assets 74,749.00 79,539.00 -6.02%
Contingent Liabilities 4,627.00 6,596.00 -29.85%
Book Value (in ₹) 290.16 295.72 -1.88%

12. 12
 As per above chat we noticed that compareto 2017 in 2018 thedegree
of reserves aredecreases by 6.70%
 In second point Infosys debtors areincreases compareto 2017 in 2018
it was jump 10960 to 12151.
 Debtors are increases in 2018 by 10.87%.
 Increases in debtors is good sign of increases in credit sales but as well
as also bad sing of increases risk.
 Along with debtors here also rise in loan & advances in 2018 it indicated
that Infosys also increases their liability by 23.99%
 Compare to 2017 in 2018 the company noticed that the current assets is
decreases 47682 to 44090 with the 7.53%.
 The causes of decreases in current assets is decreases in current
investment as well as in cash and bank balance.
0
10000
20000
30000
40000
50000
60000
70000
Reserves Debtors loans & Advances Current assets
62280
11993
7733
44090
66749
15334
6237
47682
comparative study
2018 2017

13. 13
HCL Technologies
HCL Technologies Limited (Hindustan Computers Limited) is an Indian
multinational technology company, headquartered in Noida, Uttar Pradesh,
India. Itis a subsidiary of HCL Enterprise. Originally a research and development
division of HCL, it emerged as an independent company in 1991 when HCL
ventured into the software services business.
 Industry : ITservices, ITconsulting
 Founded : 11 August1976; 42 years ago
 Founder : Shiv Nadar Arjun Malhotra
 Headquarters : Noida, India
 Area served : Worldwide
 Key people : Shiv Nadar(Chairman & CSO)
C Vijayakumar(CEO)
 Services : IT, business consulting and outsourcing
services

14. 14
Comparative study of HCL Technologies
Balance sheet
FIGURES IN RS CRORE 2018 2017 YoY
%Change
SOURCES OF FUNDS YoY
%Change
SHARE CAPITAL 278.00 285.00 -2.46%
RESERVES 36108.00 32664.00 10.54%
TOTAL SHAREHOLDERS FUNDS 36386.00 32949.00 10.43%
SECURED LOANS 168.00 106.00 58.49%
UNSECURED LOANS 1547.00 1398.00 10.66%
TOTAL DEBT 1715.00 1504.00 14.02%
TOTAL LIABILITIES 38101.00 34626.00 10.04%
APPLICATION OF FUNDS
GROSS BLOCK 24639.00 20000.00 23.20%
CAPITAL WORK IN PROGRESS 320.00 448.00 -28.57%
INVESTMENTS 2660.00 1306.00 103.68%
CURRENT ASSETS, LOANS & ADVANCES
INVENTORIES 172.00 276.00 -37.68%
SUNDRY DEBTORS 9639.00 8301.00 16.12%
CASH AND BANK 4018.00 9044.00 -55.57%
LOANS AND ADVANCES 12683.00 11462.00 10.65%
TOTAL CURRENT ASSETS 26512.00 29083.00 -8.84%
CURRENT LIABILITIES AND PROVISIONS
CURRENT LIABILITIES 8928.00 10234.00 -12.76%
PROVISIONS 1216.00 1212.00 0.33%
NET CURRENT ASSETS 16368.00 17637.00 -7.20%
OTHER ASSETS 10431.00 9658.00 8.00%
TOTAL ASSETS 38101.00 34626.00 10.03%

15. 15
 Due to the last year high profitor we can say more earning of HCL
Ltd. is reflecting in rise in reserves of 2018 compare to 2017 by
10.54%
 As we also discuss earlier last year’s handsome amount of profit is
leads to the investment which is increase 1306 to 2660 in 2018.
 Investment increases by 103.68%.
 Changes in loans and advance in 2018 is increases by 10.65%.it
leads to rise in current assets of the company.
 In current assets of the company in 2018 is decreases due to the
negative changes is come in inventories and cash / bank balance.
 As result the current assets of HCL Ltd. was decreases by 8.84%.
0
5000
10000
15000
20000
25000
30000
35000
40000
Reserves Investment loans & advances Current assest
36108
2660
12683
26512
32664
1306
11462
29083
comparative study
Series 1 Series 2

16. 16
Wipro Ltd.
Wipro Ltd. is an India-based information technology, consulting and
business processservices companyheadquartered in Bengaluru.
In 2013,Wipro demerged its non-IT businesses into separate
companies.
Wipro Logo since 2017
Type : Public
Industry : ITservices, ITconsulting
Founded : 29 December 1945; 72 years ago(Amalner, Maharashtra)
Founder : Mohamed Prem
Headquarters : Bengaluru, India
Area served : Worldwide
Key people : Azim Premji(Chairman)
Abidali Neemuchwala (CEO)
Services : Digital Strategy, Business Consulting and ITServices
Owner : Azim Premji(73.25%)
Number of
Employees : 164,659 (2018)

17. 17
Comparative study of Wipro Ltd.
Balance sheet
Parameter MAR'18
(₹ Cr.)
MAR'17
(₹ Cr.)
YoY
%Change
EQUITY AND LIABILITIES
Share Capital 904.80 486.10 86.13%
Share Warrants & Outstandings
Total Reserves 41,180.60 45,864.00 -10.21%
Shareholder'sFunds 42,262.60 46,705.60 -9.51%
SecuredLoans 53.90 116.10 -53.57%
UnsecuredLoans 18.50 1,030.20 -98.20%
DeferredTax Assets/Liabilities -405.70 -96.10 322.16%
OtherLong Term Liabilities 229.60 42.80 436.45%
Long TermProvisions 1,024.50 1,283.20 -20.16%
Total Non-CurrentLiabilities 920.80 2,376.20 -61.25%
Current Liabilities
Trade Payables 4,176.20 3,818.60 9.36%
OtherCurrentLiabilities 4,522.50 3,696.60 22.34%
Short TermBorrowings 4,647.70 5,018.60 -7.39%
Short TermProvisions 1,689.50 1,306.10 29.35%
Total Current Liabilities 15,035.90 13,839.90 8.64%
Total Liabilities 58,219.30 62,921.70 -7.47%
ASSETS
Gross Block 11,360.70 11,050.90 2.80%

18. 18
Less:AccumulatedDepreciation 6,993.70 6,688.70 4.56%
NetBlock 4,367.00 4,362.20 0.11%
Capital Workin Progress 1,290.60 694.10 85.94%
NonCurrentInvestments 5,841.60 5,999.40 -2.63%
Long TermLoans & Advances 2,541.50 1,916.80 32.59%
OtherNonCurrentAssets 1,211.30 1,222.10 -0.88%
Total Non-CurrentAssets 15,252.00 14,194.60 7.45%
Current AssetsLoans & Advances
CurrentsInvestments 24,841.20 29,146.70 -14.77%
Inventories 294.30 355.90 -17.31%
SundryDebtors 9,502.00 8,129.90 16.88%
Cash andBank 2,322.00 3,516.60 -33.97%
OtherCurrentAssets 4,863.10 6,113.50 -20.45%
Short TermLoans and Advances 1,144.70 1,464.50 -21.84%
Total Current Assets 42,967.30 48,727.10 -11.82%
NetCurrentAssets(IncludingCurrentInvestments) 27,931.40 34,887.20 -19.94%
Total CurrentAssetsExcludingCurrent Investments 18,126.10 19,580.40 -7.43%
Total Assets 58,219.30 62,921.70 -7.47%
ContingentLiabilities 1,821.70 2,361.20 -22.85%
Total Debt 5,802.80 6,309.90 -8.04%
BookValue (in₹) 93.03 190.70 -51.22%
AdjustedBookValue (in₹) 93.03 95.35 -2.44%

19. 19
 The reason of falls in reserves is the low level of profitof the wipro
in 2018 due to the environmental changes in market.
 The reserve is come to the point 45864 to 41180 in 2018.
 Compare to 2017 the reserves are 10.37% less.
 In 2018 the current liability is increases by 8.65%.it is not
favorable situation for any company to rise in current liability.
 Along with that we found the falls in current assets of Wipro Ltd. it
was 8129 in 2017 by decreases in 2018 it was reach at the 9502.
 The level of debtors in 2018 is rise compare to 2017 by 16.88%.
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
Reseves Current liaibility current assest Debtors
41180
15035
4863
9502
45864
13839
6113
8129
comparative study
2018 2017

20. 20
Tech Mahindra Ltd.
Tech Mahindra Limited is an Indian multinational provider of information
technology (IT), networking technology solutions and Business Process
Outsourcing (BPO) to various industry verticals and horizontals.
Anand Mahindra is the Chairman of Tech Mahindra, which is headquartered at
Pune and has its registered officein Mumbai.
 Industry : ITservices, ITconsulting
 Founded : 1986; 32 years ago
 Headquarters : Pune, India
 Area served : Worldwide
 Key people : Anand Mahindra (Chairman & Founder)
Vineet Nayyar (VC)
CP Gurnani (CEO)
 Services : IT, business consulting and outsourcing
 Number of
Employees : 113,550+(2018 Q1)
 Parent : Mahindra Group

21. 21
Comparative study of Tech Mahindra Ltd.
Balance sheet
Parameter MAR'18
(₹ Cr.)
MAR'17
(₹ Cr.)
YoY
%Change
EQUITY AND LIABILITIES
Sources Of Funds
Total Share Capital 489.70 486.80 0.60%
Equity Share Capital 489.70 486.80 0.60%
Reserves 19051.40 16403.40 16.14%
Networth 19541.10 16890.20 15.69%
Unsecured Loans 145.00 174.20 -16.67%
Total Debt 145.00 174.20 -16.67%
Total Liabilities 19686.10 17064.40 15.36%
Application Of Funds
Gross Block 6945.00 5879.80 18.12%
Less: Accum. Depreciation 3843.50 3427.10 12.15%
Net Block 3101.50 2452.70 26.45%
Capital Work in Progress 364.30 407.30 -10.56%
Investments 10108.10 7716.40 30.99%
Sundry Debtors 5070.00 4571.70 10.90%
Cash and Bank Balance 1929.30 2083.90 -7.42%
Total Current Assets 6999.30 6655.60 5.16%

22. 22
Loans and Advances 6225.60 6500.80 -4.23%
Total CA, Loans & Advances 13224.90 13156.40 0.52%
Current Liabilities 6479.10 6048.60 7.12%
Provisions 633.60 619.80 2.23%
Total CL & Provisions 7112.20 6668.40 6.66%
Net Current Assets 6112.20 6488.00 -5.79%
Total Assets 19686.10 17064.40 15.36%
Contingent Liabilities 12467.80 11996.60 3.93%
Book Value (Rs) 199.54 173.49 15.02%

23. 23
 The reserves are 16403 in 2017 which is now at the 19051 in 2018. The
changes by 16.14% in positivemanner.
 Due to the high level of sales on credit basewe found that risein the
level of debtor in 2018. Itwas reach 4571 to 5070 and by in percentage
it was rise10.90%.
 Because the debtor is the partof currentassets the increases in debtors
is resultinto the risein current assets.
 The changes is come at the degree of 5.09%.
 Currentliability of the Tech Mahindra is increases in 2018 compareto
2017 by 7.12%.
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
Reserves Debtors Current assest Current liability
19051
5070
6999 6479
16403
4571
6655 6048
comparative study
2018 2017

24. 24
COMPARATIVE ANLYSIS
OF COMPANY
Parameter TATA INFOSYS WIPRO HCL
Technologies
Tech
Mahindra
Market
share
25% 18% 15% 10% 3%
TATA
Infosys
Wipro
HCL
Tech Mahindra
Others
IT COMPANIES MARKET SHARE

25. 25
Parameter
(INR)
TATA INFOSYS WIPRO HCL
Technologies
Tech
Mahindra
Market
price of
share
1900.25 680.50 321.00 973.80 679.99
1900.25
680.5
321
973.8
679.99
0 200 400 600 800 1000 1200 1400 1600 1800 2000
TATA
INFOSYS
WIPRO
HCL TECHNOLOGY
TECH MAHINDRA

26. 26
References
 https://www.tcs.com/investor-relations
 https://www.tcs.com/financial-statements#year=&quarter=quarter1
 https://www.infosys.com/investors/reports-filings/
 https://www.wipro.com/annual-reports/
 https://www.wipro.com/content/dam/nexus/en/investor/annual-
reports/2017-2018/annual-report-for-fy-2017-18.pdf
 https://www.hcltech.com/investors/results-reports
 https://www.hcl.com/financials
 https://www.techmahindra.com/investors/annual_reports.aspx
 https://www.techmahindra.com/sites/ResourceCenter/Financial%20R
eports/Annual-Report-FY16-17.pdf