BY

ANAMIKA CHAKRABARTY ANIKA THAKUR AVPSA DASH BABLI KUMARI GALA MONIKA

With its subsidiaries and associates is a leading India based provider of IT Services and Products, including Business Process Outsourcing Services, globally. Other business -India and AsiaPac IT Services and products and Consumer Care and Lighting. Headquartered in Bangalore. Has 40+ Centers of Excellence that create solutions around specific needs of industries. $3.5 billion Global company in ITServices, R&D Services & Outsourcing.

Largest third party R&D Service provider in 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) World's first CMMi Level 5 certified software services co. and SEI CMM Level 5 First outside USA to receive the IEEE Software Process Award.
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Mar ' 10

Mar ' 09

Income
Operating income 22,922.00 21,507.30

Expenses
Material consumed Manufacturing expenses Personnel expenses Selling expenses Adminstrative expenses Expenses capitalised Cost of sales Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT 4,029.40 2,213.20 9,062.80 378.10 1,737.00 17,420.50 5,501.50 434.20 5,935.70 108.40 579.60 5,247.70 3,442.60 1,841.80 9,249.80 308.40 1,906.00 16,748.60 4,758.70 468.20 5,226.90 196.80 533.60 4,496.50

Wipro

TCS

Infosys

Sources Of Funds

Mar '10

Mar '10

Mar '10

Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves

293.60 293.60 1.80 0.00 17,396.80 0.00

295.72 195.72 0.00 100.00 14,820.90 0.00

287.00 287.00 0.00 0.00 21,749.00 0.00

Networth
Secured Loans Unsecured Loans Total Debt Total Liabilities
Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions

17,692.20
0.00 5,530.20 5,530.20 23,222.40
6,761.30 3,105.00 3,656.30 991.10 8,966.50 606.90 4,754.70 1,938.30 7,299.90 5,519.40 3,726.00 16,545.30 0.00 4,706.00 2,230.80 6,936.80

15,116.62
29.25 6.49 35.74 15,152.36
4,871.21 2,110.69 2,760.52 940.72 7,893.39 6.78 3,332.30 212.31 3,551.39 4,101.84 3,183.85 10,837.08 0.00 3,352.74 3,926.61 7,279.35

22,036.00
0.00 0.00 0.00 22,036.00
3,779.00 0.00 3,779.00 409.00 4,636.00 0.00 3,244.00 9,797.00 13,041.00 4,201.00 0.00 17,242.00 0.00 1,995.00 2,035.00 4,030.00

Refers to the existence of the assets in the cash form. Indicates ability of company to discharge the liabilities as and when they mature. Liquidity Ratios --Current Ratio --Quick Ratio --Net Working Capital
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Shows the proportion of Current Assets to Current Liabilities. Also known as Working Capital Ratio. Measure of short term financial strength of the business. Ideal current ratio is 2:1.

Current Ratio = Current Assets ---------------------Current Liabilities

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Year 2003-04 2004-05 2005--06 2006-07 Ratios 1.26 1.58 1.44 1.67

2007-08 2008-09 2009-10 2.13 1.74 2.00

Interpretation

Current ratio is always 2:1 it means the current assets two time of current liability. After observing the figure the current ratio is fluctuating in the year 2008 ratio is showing good shine. Ratio is increased as a increasing rate from 2004 to 2008. Company is no where near the ideal ratio in every year but every company can not achieve this ratio. Current ratio is increased in 2007-08 as compared to 2003-04 because of increase in Inventories 100.96% and 123.77 % increased in Cash and Bank balance. Current ratio is decreased in 2005-06 as compared to the last year because of increase in liabilities by 45.39% and 93.19% in increasing in Provision.
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Ratio shows the amount of cash available to meet immediate payments. Obtained by dividing the quick assets by quick liabilities. Quick Assets are obtained by deducting stocks from current assets. Quick liabilities are obtained by deducting bank over draft from current liabilities.

Quick Ratio = Quick Assets ------------------Current Liabilities

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Year 2003-04 2004-05 2005-06 2006-07 2007-08 2008-2009 2009-10 Ratios 1.2 1.5 1.4 1.6 2.0 1.6 2.1

Interpretation Standard Ratio is 1:1 Companys Quick Assets is more than Quick Liabilities for all these 5 years. In 2007-08 the ratio is increasing because of increase in bank and cash balance. So all the years has quick ratio exceeding 1, the firm is in position to meet its immediate obligation in all the years. In 2005-06 quick ratio is decreased because the increase in quick assets is less proportionate to the increased quick liabilities. The Quick ratio was at its peak in 2007-08, while was lowest in the 04-05.
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Every action initiated by management of company should be aimed at maximizing profits, irrespective of social as well as economical consequences. It is a fact that sufficient must be earned to sustain the operation of the business to be able to obtain funds from investors for expansion and growth and to contribute towards the responsibility for the welfare of the society in business environment and globalization. Measure the operating efficiency of the company. Profitability Ratios Gross Profit Ratio Operating Profit Ratio Net Profit Ratio Rate Of Return On Investment Rate Of Return On Equity

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Relationship between gross profit earned to net sales.

Indicates profitability of business. Shows whether mark-up obtained on cost of production is sufficient.

Gross Profit Ratio = Gross Profit ----------------- X 100 Sales

Gross profit ratio analysis

Year 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 Trend 29.8 31.7 32.6 33.7 33.0 27.4 32.7

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Shows the relation between (Cost of Goods Sold + Operating Expenses and Net Sales) Shows the efficiency of the company in managing the operating costs base with respect to Sales. The higher the ratio, the less will be the margin available to proprietors.

Operating Profit Ratio = COGS Operating expenses X 100 ---------------------------------------------Sales Operating ratio

Year 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 Trend 83.5 80.0 79.0 77.9 81.7 76.9 80.4

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Net Profit Ratio = Net profit x 100 -------------------------Net sales

Net profit ratio
Year Trend 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 16.3 19.4 19.2 19.8 17.7 16.9 18.7

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Asset Turnover Ratio are productivity ratios, Measure the output produced from the given input deployed.

Productivity =

Output ------------Input

Assets are inputs which are deployed to generate production (or sales).

If the asset turnover is high, it shows efficient or productive use of input.

The following Assets Turnover Ratios are calculated for the company. Total Assets Turnover Net Fixed Assets Turnover Net Working Capital Turnover Inventory Turnover Ratio Debtor Turnover (in times)

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Ratio of Sales to Total Assets. Measures the efficiency with which assets were turned over a period.

Total Asset Turnover Ratio =

Sales ---------Total Assets

Total assets turnover ratio

Year 03-04 04-05 05-06 06-07 07-08 08-09 09-10 Trend 1.5 1.5 1.6 1.5 1.2 1.0 1.5
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As certain the efficiency & profitability of business the total fixed assets are compared to sales. The more the sales in relation to the amount invested in fixed assets, the more efficient is the use of fixed assets. Indicates higher efficiency. If the sales are less as compared to investment in fixed assets it means that fixed assets are not adequately utilized in business. Excessive sale is an indication of over trading and is dangerous. Net Fixed Assets Turnover Ratio = Total fixed assets turnover ratio Sales ---------Net Fixed Assets

Year 03-04 04-05 05-06 06-07 07-08 08-09 09-10 Time 4.0 4.2 4.9 4.0 2.4 2.1 4.4
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Ratio indicate split of EPS between Cash Dividends and reinvestment of Profit. If Company has Profitable projects than it will prefer to keep dividend pay out ratio lower.
Dividend pay-out Ratio = Dividend per Share in Rs. ----------------------------------Earnings per share in Rs.

Year 03-04 04-05 05-06 06-07 07-08 08-09 09-10 Trend(Rs.) 1.54 4.68 2.94 3.77 3.43 2.98 3.76
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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. 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 is 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.

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The companys 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 companys sale is continuously rising but the net profit is not so much increased so management should take some 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 tray 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.
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Trend Analysis of Fixed assets

Year Total Fixed Assets 2003-04 100 2004-05 130.827 2005-06 2006-07 112.844 175.077 2007-08 220.726

Interpretation The fixed assets are increased in current year(good for the company) Fixed assets are increasing as a increasing rate it means the company has expand its business. Continuously increasing year by year. Company has good future plans and they want to expand their business so they have invested more and more funds in fixed assets. Fixed assets are efficiently utilized by the company due to which the profit of the company is increasing every year. In 06-07 and 07-08, Company has huge increase its land, patents, trade marks and rights.
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Year 2003-04 2004-05 2005-06 2006-07 2007-08 Total CA 100 129.242 157.708 154.955 166.304 Interpretation

Current assets shows the cash liquidity of the company. It increases year by year, it means the company has sufficient liquidity for generating the business

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