ratio analysis of wipro

PERIOD ENDING 31-Mar-08 (rs 000) 31-Mar-07

Assets

Current Assets

Cash And Cash Equivalents 985,677   451,951  

Short Term Investments 371,681   745,440  

Net Receivables 1,204,875   780,730  

Inventory 180,017   95,459  

Other Current Assets 479,209   239,475  

Total Current Assets 3,221,460   2,313,055  

Long Term Investments 42,620   36,780  

Property Plant and Equipment 999,532   610,453  

Goodwill 977,469   292,047  

Intangible Assets 313,248   61,429  

Accumulated Amortization -   -  

Other Assets 80,671   45,055  

Deferred Long Term Asset Charges -   1,116  

Total Assets 5,635,000   3,359,935  

HISTORY

Wipro was set up in the backdrop of the small town of Amalner in Maharashtra in 1945. Primarily an oil factory, the chief products were Sunflower Vanaspati and 787 laundry soap.

It was in the early eighties that Wipro made its foray into the Info-tech arena. An energetic, committed team of professional R & D and marketing managers came together in Bangalore in 1980. 

LiabilitiesCurrent Liabilities

Accounts Payable 715,049   860,747  

Short/Current Long Term Debt 741,278   76,600  

Other Current Liabilities 418,693   47,552  

Total Current Liabilities 1,875,020   984,900  

Long Term Debt 382,097   12,891  

Other Liabilities 75,576   17,708  

Deferred Long Term Liability Charges 52,660   10,672  

Minority Interest 2,861   -  

Negative Goodwill -   -  

Total Liabilities 2,388,215   1,026,170  

WHY TO ANALYSE FINANCIAL STATEMENT?

It gives true and fair picture of a company.It helps in Investment decision.It is used by g

BALANCE SHEET AS ON

LIABILITIES ASSETS

TRADING ANDPROFIT & LOSS A/C

LIABILITIES ASSETS

SUBSIDIARY BOOK PURCHASE BOOK SALES BOOK PURCHASE RETURN

BOOK SALES RETURN BOOK JOURNAL PROPER BOOK

LEDGERNOMINAL ACCOUNTREAL ACCOUNTPERSONAL ACCOUNT

Expense Income

Classification Of Ratios

Ratios can be broadly classified into four groups namely:

Liquidity Group Capital structure/leverage Group Profitability Group Activity Group

Liquidity Group

Current Ratio = Current assets / current Liabilities

= 3,221,460 / 1,875,020

= 1.71

• Quick Ratio = Quick assets / Quick Liabilities

=