MIRA
INFORM REPORT
|
Report Date : |
31.10.2007 |
IDENTIFICATION
DETAILS
|
Name : |
WIPRO LIMITED |
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Registered Office : |
Doddakannelli, Sarjapur Road, Bangalore- 560035, Karnataka |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
10.07.1996 |
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Com. Reg. No.: |
08-20800 |
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CIN No.: [Company
Identification No.] |
L99999KA1996PLC020800 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRW00415C |
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Legal Form : |
Public Limited
Liability Company. The company’s
shares are listed on the Stock Exchanges. |
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Line of Business : |
Software exports,
software & services, consumer care, lighting and healthcare. Providing services
of IT and IS consulting for E-business transformation, electronic commerce,
web enabling, data warehousing and customer relation's management. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
Maximum Credit Limit : |
USD 372676000 |
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|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a
well-established and reputed company having excellent track. Available information indicates high financial
responsibility of the company.
Financial position is good.
Payments are always correct and as per commitments. The company can
be considered normal for business dealings at usual trade terms and
conditions |
LOCATIONS
|
Registered/Corporate
Office : |
Doddakannelli,
Sarjapur Road, Bangalore - 560 035, India |
|
Tel. No.: |
91-80-28440011 |
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Fax No.: |
91-80-28440054 |
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E-Mail : |
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Website : |
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Software
Technology Parks: |
·
Bangalore,
Karnataka ·
Chennai,
Tamilnadu ·
Secunderabad,
Andhra Pradesh ·
Pune,
Maharashtra ·
Gurgaon,
Haryana ·
Hyderabad,
Andhra Pradesh
|
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|
|
Factory : |
> Sigma Infotech Park, Whitefield,
Bangalore, Karnataka, India > S B Towers, 88, M G Road, Bangalore -
560 001, Karnataka, India > 608-610, Carlton Towers, No. 1
Airport Road, Bangalore - 560 001,
Karnataka, India > Information Technology Park, Whitefield,
Bangalore - 560 066,
Karnataka, India > 271-27 1 A, Sri Ganesh Complex, Hosur
Main Road, Bangalore - 560
068, Karnataka, India > 26, Sri Chamundi Complex, Madivala
II, Bommanahalli, Hosur Main
Road, Bangalore - 560 068, Karnataka, India > No. l, 2, 3, 4 and 54/1, Survey No.
201/C, Madivala III, Bangalore - 560
068, Karnataka, India > No. l, 2, 3, 4 and 54/1, Survey No.
201/C, Madivala III (Research &
Development), Bangalore - 560 068, Karnataka, India > No. 1 , 2, 3, 4 and 54/3, Survey No.-
201/C, Madivala IV, Bangalore –
560 068, Karnataka, India > 3rd Floor, Ahmed Plaza,
No.38/l&2, Bertenna Agrahara, Hosur Main
Road, Bangalore - 560 068, Karnataka, India > Subramanya Arcade, Bannergatta Main Road,
Bangalore, Karnataka,
India > K-3 1 2, Koramangala Industrial
Layout, Bangalore - 560 095,
Karnataka, India > V Block, Koramangala, Bangalore - 560
095, Karnataka, India > Electronics City 1 - No. 72, Keonics
Electronic City, Hosur Road, Bangalore - 561 229, Karnataka, India > Electronics City - II, Tower IV, No.
72, Keonics Electronic City, Hosur
Road, Bangalore - 561 229, Karnataka, India > No.92, 2nd Main Road, KEONICS
Electronic City – SIRI, Bangalore –
561 229, Karnataka, India > S. No. 70/1, 2, 3, 4(P) &. 84/1,
2, 3, 4(P) Doddathogur Village, Begur
Hobli, ' Bangalore - 561 229, Karnataka, India > Capitale, 552 &. 555, Anna Salai,
Teynampet, Chennai, Tamilnadu > 475A, Shollinganallur, Old Mahabalipuram
Road (CDC-III), Chennai –
600 019, Tamilnadu > 111, Mount Road, Guindy, Chennai -
600 032, Tamilnadu > No. 105, Guindy, Mount Road, Chennai
- 600 032, Tamilnadu > Infotech Park, SDF Building, 4th
Floor, Kusumagiri, Kakkanad, Cochin > Infotech Park, 4th Floor, Vismaya
Building, Kakkanad, Cochin > 239, Okhla Industrial Estate, Delhi,
India > Plot No.27/28, Phase IV, Udyog Vihar,
Gurgaon - 122 016 > Plot No. 281,Phase II, Udyog Vihar,
Gurgaon - 122 106, Haryana > No. 480-481, Udyog Vihar, Phase-Ill,
Gurgoan - 122015, Haryana > S. No. 203/1, Manikonda Jagir
Village, Rajendranagar Mandal, RR
District, Hyderabad > Survey Nos. 64, Serilingampali
Mandal, Madhapur, Hyderabad - 500
033 > Queens Plaza, S P Road, Hyderabad -
500 033, Andhra Pradesh > Plot No. 1, 7, 8 & 9, Block-DM,
Sector- V, Saltlake, Kolkata - 700 091,
West Bengal > 146/147, Mettagalli Industrial Area,
Mettagalli, Mysore > Vashi, Navi Mumbai, Mumbai,
Maharashtra, India > Plot No. 2, MIDC, Infotech Park, Hingewadi,
Pune - 411 027,
Maharashtra > 1-8-448, Lakshmi Buildings, S P Road,
Begumpet, Secunderabad - 500
016 |
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Overseas
Offices : |
1300, Crittenden
Lane, # 200, Mountain View, CA 94043, U.S.A. Tel. No. :
91-650-3163555 Fax No. : 91-650-3163467 Mimet House, Sa
Praed Street, London W2 INJ, U.K. Tel. No. : +44
[020] 70873770 Fax No. : +44
[020] 72625360 Yokohama Landmark
Tower, 9F # 911A, 2-2-1-1, Minato – Mirai, Nishi-Ku, Yokohama-shi, Kanagawa,
220-8109, Japan Tel. No. : +81
[45] 650 3950 Fax No. : +81
[45] 650 3951 Wipro Technologies
1995, El Camino
Real, Suite 200, Santa Clara, CA 95050, USA Tel. No.: (408)
249 6345 Fax No.: (408)
6157174 / 6157178 15455 N. W.,
Greenbrier Parkway, Suite 210, Beaverton, OR 97006, USA Tel. No.: (503)
4390825 Fax No.: (503)
4398426 10655 N. E., 4th
Street, Suite 400, Bellevue, WA 98004, USA Tel. No.: (425)
4553486 Fax No.: (425)
6880973 833, East Arapaho
Road, Suite 202, Richardson, TX 75081, USA Tel. No.: (972)
6716130 Fax No.: (972)
6716134 2432, W. Peoria
Avenue, Suite 1323, Phoenix, AZ 85029, USA Tel. No.: (602)
8705780 Extn.: 101 100, W. 22nd
Street, Suite 106, Lombard, IL 60148, USA Tel. No.: (630)
8899860 Fax No.: (630)
8899187 8901, Lyndale
Avenue, South Suite 106, Bloomington, MN 55420, USA Tel. No.: (952)
9489683 Fax No.: (952)
9489684 12081, Lafayett
Street, Thornton, CO 80241, USA Tel. No.: 303-254
2457 Fax No.: 720-244
4872 33 Woodcock
Avenue, #23 Haverhill, MA 01832, USA Tel. No.: 978-372
9531 Fax No.: 978-372
9560 345, Buckland
Hills, Dr. Suite 7213, Manchester, CT 06040, USA Tel. No.: 860-644
3657 Fax No.: 860-644
3667 220, Old New
Brunswick Road, Suite 202, Piscataway, NJ 08854, USA Tel. No.: (732)
4650401 Fax No.: (732)
4650420 Top Floor, Kings Court,
185, Kings Road, Reading RG 14 EX, United Kingdom 2432, W Peoria
Ave, Suite 1323, Phoenix, Arizona, USA AZ 85029 Room no. 1064,
Hatanpaankatu 1 (Kulma-Sarvis), Tampere, Finland Chrysler
Building, 6th Floor, 1 Riverside Drive West, Windsor ONN5A5K4,
Canada Web Campus,
Kaistrasse, 101 Kiel 24114, Germany |
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Branches : |
Wipro Infotech Software & Service
88, M.
G. Road, Bangalore – 560 001, Karnataka
Tel. No. 91-80-2558 8422 Fax No. 91-80-2558 6657 Wipro Consumer Care & Lighting Group
Nirmal, 241-242,
Nariman Point, Mumbai – 400 021, Maharashtra Tel. No. 91-22-22029254 Fax No. 91-22-2284 1143 Wipro Fluid Power
9B/10A Peenya
Industrial Area, Bangalore – 560 058, Karnataka Tel. No. 91-80-2839 4982 Fax No. 91-80-2839 6450 Wipro Biomed
903/904 Prakash
Deep, 7, Tolstoy Marg, New Delhi – 110 001 Tel. No. 91-11-2332 5677 Fax No. 91-11-2373 8675 Wipro Lighting
Tulsi Chambers,
Opp. St. Francis D’Sales High School, Jalna Road, Aurangabad – 431 001,
Maharashtra Tel. No. 91-240-2333 351 Fax No. 91-240-2334 001 |
DIRECTORS
|
Name : |
Mr. Azim Hashmi
Premji |
|
Designation : |
Chairman |
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Date of
Appointment : |
01.09.1968 |
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|
Name : |
Dr. Ashok Ganguly |
|
Designation : |
Chairman, ICICI OneSource
Limited. Former Chairman, ICI India Limited |
|
Date of
Appointment : |
01.01.1999 |
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|
|
|
Name : |
Mr. B. C.
Prabhakar |
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Designation : |
Practitioner of Law |
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Date of
Appointment : |
20.02.1997 |
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|
Name : |
Mr. Vivek Paul |
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Designation : |
Vice Chairman and Executive Officer |
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Date of
Appointment : |
26/07/1999 |
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|
Name : |
Mr. Narayan
Vaghul |
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Designation : |
Chairman, ICICI Bonk Limited |
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Date of
Appointment : |
09.06.1997 |
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|
|
|
Name : |
Professor Eisuke Sakakibara |
|
Designation : |
Professor of
Economics, Keio Universityjapan |
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Date of
Appointment : |
01/01/2002 |
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|
|
|
Name : |
Mr. P. M. Sinha |
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Designation : |
Former Chairman, PepsiCo India Holdings |
|
Date of
Appointment : |
01.01.2002 |
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|
|
|
Name : |
Dr. Jagdish N Sheth |
|
Designation : |
Professor of
Marketing, Emory University, USA |
|
Date of
Appointment : |
01.01.1999 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 30.06.2007
|
|
NO. OF SHARES
|
PERCENTAGE (%)
|
Promoters ' Holdings
|
|
|
|
Promoters |
|
|
|
Promoters in his
capacity as partner of Partnership firms |
975520800 |
66.86 |
|
Promoter in his
capacity as director of Private Limited Companies |
128137800 |
8.78 |
|
Promoter in his individual
capacity |
57477660 |
3.94 |
|
Sub Total |
161136260 |
79.58 |
|
|
|
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Non
Promoter's Holdings
|
|
|
|
Mutual Funds and
UTI |
11573694 |
0.79 |
|
Banks, Financial
Institutions and Insurance Companies |
845249 |
0.06 |
|
FIIs |
76756010 |
5.26 |
|
|
|
|
Others
|
|
|
|
Private Corporate
Bodies |
66497511 |
2.33 |
|
Indian Public |
98139449 |
6.88 |
|
NRIs / OCBs |
14944157 |
1.05 |
|
Directors and
Relatives |
23000 |
0.00 |
|
Trusts |
8007415 |
0.56 |
|
ADR’s |
21484797 |
1.51 |
|
Sub Total |
175737481 |
12.33 |
|
Total |
1459113115 |
100.00 |
BUSINESS DETAILS
|
Line of
Business : |
Software exports,
software & services, consumer care, lighting and healthcare. Providing services
of IT and IS consulting for E-business transformation, electronic commerce,
web enabling, data warehousing and customer relation's management. |
|
|
|
|
Products : |
Item code no (ITC
Code) 84713010 Product
description Personal Computer ii) Item code no
(ITC Code) 85249113 Product
description I.T.
Software iii) Item code no
(ITC Code) 15162011 Product description Vegetable fats and oils (Edible Grade) |
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Exports to : |
USA (75%),
Indonesia, Japan, The Netherlands, Sweden, Taiwan and Thailand. |
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Imports from : |
Germany, Japan,
Singapore, UK and USA |
PRODUCTION STATUS
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Vanaspati/Hydrogenated oils |
TPA |
144000 |
45000 |
5257 Tons |
|
Toilet soaps |
TPA |
64000 |
47930 |
38404Tons |
|
Leather shoe uppers, leather shoes and
allied articles |
Pairs / Nos. [1000s] p.a. in millions |
750 |
750 |
375 |
|
Fatty acids |
TPA |
20000 |
20000 |
20767 Tons |
|
Glycerine |
TPA |
2000 |
1800 |
919 Tons |
|
GLS lamps |
000s |
50000 |
50000 |
-- |
|
TL shells |
000s |
12694 |
12694 |
-- |
|
Fluorescent tube lights |
000s |
10694 |
10694 |
9283 |
|
CFL |
Nos. in 000s |
6658 |
6658 |
-- |
|
Mini computers/micro processor based
systems and data communication systems |
NPA |
180000 |
180000 |
104748 Nos. |
GENERAL
INFORMATION
|
Suppliers : |
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Customers : |
·
3COM ·
ABN Amro ·
Alcatel ·
Allianz
Church & General ·
Analog
Devices ·
Aristasoft ·
AT & T ·
Baxter ·
BSI ·
BT ·
Cisco ·
Compaq ·
ContentGuard ·
Corel ·
Cox &
Kings ·
Daiwa ·
Energy.com ·
Epson ·
Ericsson ·
Esupportnow.com ·
Farmers
insurance ·
Franklin
Templeton ·
Fujitsu ·
General
Motors ·
Genuity ·
Geoutilities.com ·
Home Depot ·
HP ·
IBM ·
Japan Travel
Bureau ·
JP Morgan ·
KPN ·
Lucent ·
Magneti
Marelli ·
Marconi ·
Menlo
Logistics ·
Microsoft ·
Mitsubishi ·
Morgan
Stanley ·
NCR ·
NEC ·
Newbridge ·
Nike ·
Nortel ·
Npower ·
NTL ·
OTIS ·
PacifiCorp ·
Pepco Energy
Services ·
Pindar ·
Seagate ·
Sharp ·
Skandia ·
Sonera ·
Sony ·
Spice ·
Sun ·
Sunquest ·
Telstra ·
Texas
Instruments ·
Thames Water ·
Thomas Cook ·
Trafalgar
Tours ·
Transco ·
Tufts Healthplan ·
TIBCO ·
United
Technologies ·
US Wireless ·
VLSI ·
Weyerhaeuser ·
Winterthus |
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No. of
Employees : |
14000 |
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Bankers : |
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Facilities : |
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|
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Banking
Relations : |
Satisfactory |
|
|
|
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Auditors : |
|
|
Name : |
N. M. Raiji &
Company Chartered
Accountants |
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|
|
|
Subsidiaries : |
|
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1650000000 |
Equity Shares |
Rs. 2/- each |
Rs. 3300.000
millions |
|
25000000 |
10.25% Redeemable Cumulative Preference Shares |
Rs. 10/- each |
Rs. 250.000
millions |
|
|
Total
|
|
Rs.
3550.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1459000000 |
Equity Shares |
Rs. 2/- each |
Rs. 2918.000
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF
FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
SHAREHOLDERS FUNDS
|
|
|
|
|
1] Share Capital |
2918.000 |
2851.510 |
1407.140 |
|
2] Share Application Money |
0.000 |
74.860 |
12.050 |
|
3] Reserves & Surplus |
90251.000 |
61353.010 |
47517.290 |
NET WORTH
|
93169.000 |
64279.380 |
48936.480 |
|
|
|
|
|
|
LOAN FUNDS |
|
|
|
|
1] Secured Loans |
232.000 |
450.580 |
215.890 |
|
2] Unsecured Loans |
2148.000 |
51.030 |
405.030 |
|
TOTAL BORROWING |
2380.000 |
501.610 |
620.920 |
|
|
|
|
|
TOTAL
|
95549.000 |
64780.990 |
49557.400 |
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
16459.000 |
11182.520 |
9079.610 |
|
Capital work-in-progress |
9895.000 |
6123.580 |
2502.390 |
|
|
|
|
|
|
INVESTMENTS |
43487.000 |
34592.030 |
28595.110 |
|
Deferred Tax Assets |
0.000 |
381.380 |
318.560 |
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
Inventories |
2404.000 |
1486.510 |
1273.740 |
|
Sundry Debtors |
25823.000 |
19680.670 |
14065.140 |
|
Cash & Bank Balances |
18492.000 |
8230.020 |
5368.960 |
|
Loans & Advances |
16665.000 |
10988.170 |
5975.190 |
|
Total
Current Assets |
63384.000 |
40385.370 |
26683.030 |
|
Less : |
|
|
|
|
Current Liabilities |
30024.000 |
17768.340 |
12084.350 |
Provisions
|
7652.000 |
10115.550 |
5236.950 |
Total
Current Liabilities
|
37676.000 |
27883.890 |
17321.300 |
|
Net Current Assets |
25708.000 |
12501.480 |
9061.730 |
|
|
|
|
|
|
Miscellaneous Expenditure |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
TOTAL
|
95549.000 |
64780.990 |
49557.400 |
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
137585.000 |
102640.900 |
72761.800 |
|
|
Other Income |
2887.000 |
1524.100 |
935.300 |
|
|
Total Income |
140472.000 |
104165.000 |
73697.100 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
31762.000 |
23396.800 |
17561.800 |
|
|
Provision for Taxation |
3341.000 |
3192.000 |
2613.600 |
|
|
Profit/(Loss) After Tax |
28421.000 |
20204.800 |
14948.200 |
|
|
|
|
|
|
|
|
Import Value |
N.A |
70832.940 |
53736.900 |
|
|
|
|
|
|
|
|
Export Value |
N.A. |
3863.830 |
3237.350 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Manufacturing Expenses |
0.000 |
0.000 |
0.000 |
|
|
Raw Materials |
19753.000 |
13506.900 |
11198.500 |
|
|
Excise Duty |
746.000 |
369.700 |
430.200 |
|
|
Power & Fuel Cost |
0.000 |
864.600 |
466.300 |
|
|
Other Manufacturing Expenses |
1205.000 |
8471.600 |
4792.600 |
|
|
Employee Cost |
57645.000 |
42715.200 |
30111.600 |
|
|
Selling and Administration Expenses |
4320.000 |
9972.300 |
6012.400 |
|
|
Miscellaneous Expenses |
22234.000 |
2156.100 |
1301.200 |
|
Total
Expenditure |
105903.000 |
78056.400 |
54312.800 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2007 1st
Quarter |
30.09.2007 2nd
Quarter |
|
Sales Turnover |
|
36791.000 |
41500.000 |
|
Other Income |
|
977.000 |
950.000 |
|
Total Income |
|
37768.000 |
42450.000 |
|
Total Expenditure |
|
28982.000 |
32575.000 |
|
Operating Profit |
|
8786.000 |
9875.000 |
|
Interest |
|
110.000 |
249.000 |
|
Gross Profit |
|
8676.000 |
9626.000 |
|
Depreciation |
|
1073.000 |
1095.000 |
|
Tax |
|
889.000 |
928.000 |
|
Reported PAT |
|
6714.000 |
7603.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
|
0.02 |
0.01 |
0.02 |
|
Long Term Debt-Equity Ratio |
|
0.02 |
0.00 |
0.01 |
|
Current Ratio |
|
1.58 |
1.46 |
1.33 |
|
TURNOVER RATIOS |
|
|
|
|
|
Fixed Assets |
|
6.86 |
4.97 |
4.70 |
|
Inventory |
|
70.73 |
74.37 |
63.42 |
|
Debtors |
|
6.05 |
6.12 |
5.90 |
|
Interest Cover Ratio |
|
442.14 |
748.50 |
316.29 |
|
Operating Profit Margin(%) |
|
25.75 |
25.67 |
26.77 |
|
Profit Before Interest And Tax Margin(%) |
|
23.14 |
22.83 |
24.21 |
|
Cash Profit Margin(%) |
|
23.27 |
22.53 |
23.10 |
|
Adjusted Net Profit Margin(%) |
|
20.66 |
19.68 |
20.54 |
|
Return On Capital Employed(%) |
|
39.73 |
41.01 |
41.15 |
|
Return On Net Worth(%) |
|
36.12 |
35.72 |
35.59 |
LOCAL AGENCY
FURTHER INFORMATION
History
Subject
is one of the leading players in providing IT services & Products business
globally. Subject though started as a edible oil producer way back in 1945,
under the name Western India Vegetable Products, a private limited company has
transformed itself into leading player in FMCG and IT services & Products
business. It's FMCG business (or Subject Consumer care and Lighting) with
strong brands in baby care, toilet soaps, personal wash, personal grooming,
domestic and industrial lighting has significant presence in domestic market.
The company also has presence in manufacture of hydraulic cylinders and medical
equipments through its subsidiary i.e. Wipro Fluid Power and JV affiliate Wipro
GE Medical Systems Private respectively.
Subject provide comprehensive range of IT services, software solutions, IT
consulting, business process outsourcing and research and development services
in the areas of hardware and software design to leading companies worldwide.
This was done by combining the business/industry knowledge of domain
specialists and technical knowledge and implementation skills of delivery team
in its development centres located both in Indian and around the world. The
range of services includes IT consulting; custom application design,
development, re-engineering and maintenance, systems integration, package
implementation.
Wipro's BPO, which operated as a separate subsidiary earlier was consolidated
into Global IT services products division. The BPO provides Customer
Interaction Services, Industry Administration Services, Business Optimization
Services and Knowledge Services. The company also does Product Designing in
Hardware, System Software Development and Support services for industries like
Automotive Electronics, Computing Peripherals, Computing Platforms &
Software products, Consumer Electronics, Industrial Automation & Avionics,
Medical Devices, Mobile Devices & Application, semiconductors, Wireless
Networks, Space Communications and much more. The Company is the largest third
party R&D Service provider in the world with world's largest technology
infrastructure management practices and are among the top 3 offshore BPO
service providers by revenue.
Subject has set up an overseas design center, Odyssey 21 for undertaking
projects and product developments in advanced technologies for overseas
clients. Aviva Plc has selected Wipro Technologies as a strategic partner for
Offshore IT Outsourcing. Under the agreement, Wipro will provide a range of IT
services covering Application Development and maintenance, Package
implementation and testing. The company launched its German operations based
out of Frankfurt which will address the requirements of the enterprise for
business applications as well as R & D outsourcing requirements of
technology companies.
The company has chalked out plans to expand its operations in Tamil Nadu. The
company has set up a Campus Style facility at Sholinganallur, near Chennai as
part of Phase II expansion of the Campus Development Centre.
The company has invested in building ability in Wireless Domain like Global
Standards for Mobile (GSM), Code Device Multiple Access (CDMA) and General
Packet Radio Service (GRPS) and also in GigE Mac Core, Ethernet software
solution and Residential Gateway solutions for Customer Premise
Equipment.
The FMCG business of Wipro consist of products including hydrogenated cooking
oil, soaps and toiletries, light bulbs and fluorescent tubes and lighting
accessories. The umbrella brand of the company are 'Santoor', Wipro Active line
of talcum powers, Wipro Baby Soft line of infant and child care products and
Wipro Sanjeevani line of wellness products. The brand portfolio and market
share was strengthened/expanded by acquisition of Chandrika Ayurvedic soap and
Glucovita Glucose Powder during 2004-05. The company has also launched Wipro
Sanjeevani Honey, Wipro Sanjeevani Isabgol and Wipro Safewash liquid
detergents. The capacity of Toilet Soaps was expanded by 19930 TPA to 47,930
TPA, in Mar'05. The Company has also installed CFL during '04-'05 which stood
as 6658000 Nos in March 2005.
Wipro Lighting is a major diversification of Wipro, manufacturing and marketing
lighting products for households and the commercial and Industrial markets.
Wipro has set up a wholly owned subsidiary company viz. Wipro Consumer Care
Limited. This company will be engaged in the manufacture of consumer care and
lighting products.
The business restructuring exercises of the company to derive business synergy
has resulted in birth of Wipro e-Peripherals, Wipro Fluid Power, two of its
subsidiaries. In this context Wipro Infotech and Wipro Systems were amalgamated
with Wipro in April, 1994 and Wipro Infotech spun off its peripherals services
division into a new legal entity i.e. Wipro e-Peripherals on Sep 2000. Wipro Net
has been amalgamated with the company with effect from April 1, 2001, which
will enable it to synergize the customer offerings under one management and
enable it to offer the specialized telecom skills available within both the
companies.
Continuing that the company spin-off of its Fluid Power business unit into a
separate subsidiary company effective March 1, 2002. Netkracker, which was a
subsidiary of Wipro subsequent to acquisition of equity interest of ICICI and
the Fluid Power business was combined and renamed as Wipro Fluid Power
Limited.
Five of Wipro's manufacturing and development facilities secured the ISO 9001
certification during 1994-95. In February 2001, Wipro became the first software
technology and services company in India to be certified for ISO 14001
certification for complying with the international standards for Environmental
Management System (EMS) in three major software development and technology
centers in Bangalore. The company has strong software engineering processes &
also achieved ISO 9000 certification. Wipro is the first software company to
get SEI Level 5 & also implemented Six Sigma TQM practices to software
projects and support functions which represents a quality standard of less than
3.4 defects per million opportunities were a defect may arise. Wipro
Technologies has won the 'Banker Technology Award' for the year 2004 Instituted
by the Financial Times in the 'Risk Management Award' category. The company has
been selected for the award for its project for JP Morgan Chase to create an
operating risk management system.
In the fiscal 2004-05 the company has issued Bonus Shares in the ratio of 2:1
to its shareholders.
During December 2005, the
company has signed a definitive agreement to acquire mPower Inc., a US based
company with a development centre in Chennai and MPACT Technology Services,
which is based in Chennai.
In 2006, The Honorable High Court of Karnataka has approved the Scheme of
Amalgamation for the merger of the Spectramind Limited, Bermuda, Spectramind
Limited, Mauritius, & Wipro BPO Solutions Limited with the Company on April
05, 2006.
The company has issued bonus Shares in the ratio of 1:1 to its
shareholders.
The company has acquired mPower Software Services Inc, a Princeton, New Jersey,
US headquartered company with development Center in Chennai and MPACT
Technology services Private Limited, based in Chennai, for an all cash
Consideration of $28 million and New Logic Technologies AG, an Austrian Firm
was acquired an all cash consideration of Euro 26 Million.
The company has signed agreement in the current financial year to effectively
acquire the target company cMango Inc., a US based Technology Infrastructure
consulting firm in an all cash deal. The acquisition is effective in the next
financial year 2006-2007.
Subsidiary Companies:
The Company today
is a global corporation having operations in 29 countries through more than 50
subsidiary companies, a few joint ventures and associate companies. Section 212
of the Companies Act, 1956, requires that The Company attach the Directors'
Report,.Balance Sheet and Profit and Loss Account of their subsidiary
companies.
The Company believe that the Consolidated Financial Statements present a more
comprehensive picture rather than the standalone financial statements. The
Company therefore applied to the Ministry of Corporate Affairs, Government of
India and sought exemption from the requirement to present detailed financial
statements of each subsidiary. The Ministry of Corporate Affairs, Government of
India has granted the exemption.
As permitted by SEBI guidelines and Companies Act, 1956, The company has
included the abridged financial statements of Wipro Limited in this annual
report. The detailed financial statements and audit reports of Wipro Limited
and each of the subsidiaries are available for inspection at the registered
office of the Company and upon written request from a shareholder, The company
will arrange to send the full balance sheet, profit and loss account and
auditors report to the said shareholder.
Consolidated Results:
Their Sales for the current year grew by 41% to Rs.149,982 million and their
Profit for the year was Rs.29,421 million, an increase of 42% over the previous
year. Over the last 10 years, their Sales have grown at a Compounded Annual
Growth Rate (CAGR) of 25% and Profit after Tax at 46%.
Acquisitions and Joint
Ventures:
The
company has
continued to pursue the strategy of acquiring businesses which complement their
service offerings, provide access to niche skill sets and expand their presence
in select geographies. The company has a dedicated team of professionals who
identify businesses which meet their strategic requirements and are cultural
fit to Wipro. The following businesses have joined the Wipro family during the
year:
1. US based Quantech Global Services LLC and the India based Quantech
Global Services Ltd. for a cash consideration, which includes upfront payment
of approximately USD 3 million.
2. CMango - Transactions consummated in April 2006 - US based CMango Inc
and India based CMango India Private Limited for cash consideration which
includes upfront payment of USD 20 Mn.
3. Europe based Retail Solutions Provider, Enabler. The consideration
included upfront cash payment of approximately Euros 41 million.
4. Finland based Saraware Oy. for a cash consideration of approximately
Euro 25 million.
5. Middle East and SAARC operations of 3D Networks and Planet PSG for a
cash consideration of approximately USD 23 million.
6. In their Consumer Care and Lighting business The company acquired
North-West Switches business from NorthWest Switchgear Ltd., a company in the business
of switches, sockets, MCBs etc. for an upfront cash consideration of Rs.1,022
million.
7. In their Infrastructure Engineering business, The company acquired
Hydrauto Group AB ('Hydrauto') for a cash consideration of USD 31 million.
The Company partnered with Motorola, a global leader in Wireless
Communications, to form a joint venture namely WMNETSERV Limited to deliver
world-class Managed Services to telecom operators in the area of network
operations.
Wipro's R&D Activities: 2006-07:
Wipro's R&D focus has been in strengthening the portfolio of Centers
of Excellence (CoE) and Innovation projects. As part of this focus, over 500
people have been engaged across 55 CoEs and 30 Innovation projects. Their
R&D efforts have contributed nearly 8.5% of total revenues.
At Wipro, The company has institutionalized the spirit of Innovation
through their corporate Innovation initiative launched in year 2000. The company is now deriving business value
from these investments. Over the last 7 year period, The company has been able
to:
* Develop a rigorous Innovation management framework & process
comprising of Idea generation, Idea Incubation and Idea Execution.
* Develop point solutions for specific industry verticals like Retail, Manufacturing
as well as Intellectual Property (IP) components for Product Engineering
business.
* Build portfolio of solutions that span across Process, Delivery,
Business and Technology domains.
Process Innovation:
The company has pioneered in the art of adopting Lean & Six Sigma
principles for end to end software development life cycle.
Lean techniques have been applied to over 700 projects. This has resulted
in 20-30% savings in efforts and better schedule adherence.
Delivery Innovation:
Global Delivery
model and Software Factory model for standardized delivery are good examples of
their Delivery Innovations. Typical benefits of Software Factory model to their
customers are: 10-15% reduction in cycle time from demand to delivery of
solution, 15-20% cost reduction in capital and operational expenditure and 10%
increase in productivity through reusable components, tools and knowledge
banks
Business Innovation:
Innovations
under this portfolio include solution frameworks and methodologies to develop
industry specific solutions. Sample examples in this portfolio are Vendor
Managed Inventory, Retail Pharmacy, Integrated Publishing Platform, Clinical
Data Management, Data Privacy and Master Data Management.
Technology Innovation:
Innovations
under this portfolio include solutions with high IP component, which can be
delivered as a service thus giving the time to market benefit. Examples include
IP components for IEEE 1394/Fire wire, Wireless LAN, Bluetooth, Ultra Wide Band
(UWB) and DTV middleware.
Apart from solutions in above Innovation portfolio, Wipro has also
developed various collaboration and productivity platforms & tools such as
iGrid, PRISM, Deep Check and Accelerator.
The company has also initiated 4 projects under the theme of Quantum
Innovation. These projects are currently in different stages of prototype.
Centers of Excellence (CoE):
The goal of a
CoE is to create competencies in emerging areas of technologies & industry
and incubate new practices for business growth. The company currently manage 55
CoE's across different technologies and industry verticals. Some examples of
the CoE's are SOA, Virtualization, Grid Computing, Data Privacy
&Protection, IMS (IP multimedia subsystem), Remote Patient Monitoring,
Image Processing, Supply Chain, Retail In-Store, Retail Pharmacy, Automotive,
Open Source and Second Life.
Schemes of Amalgamation
The Schemes of Amalgamation of Wipro BPO
Solutions Limited (formerly Wipro Spectramind Services Limited), Spectramind
Limited, Bermuda, Spectramind Limited, Mauritius with Wipro Limited have been
approved by the Hon'ble High Court of Kamataka on April 5, 2006. The erstwhile
Wipro BPO Solutions Limited, Spectramind Limited, Bermuda and Spectramind Limited,
Mauritius stands merged with Wipro Limited with the effect from April 1, 2005
being the appointed date. The Annual Report of Wipro Limited for the year
2005-06, has been prepared after giving effect to the amalgamations. The orders
of the High Court have been filed with the Registrar of Companies, Bangalore on
April 29, 2006.
Fixed Assets :
Ř Land
Ř Buildings
Ř Railway siding
Ř Plant &
Machinery
Ř Furniture, Fixture
and Equipments
Ř Vehicles
Ř Technical Know-how
Ř Patents, Trademarks
& Rights
It also has a joint
venture with British Telecom for providing value-added network and VSAT
services.
The company has
been accredited with ISO 9001 and ISO 14001 Certification.
AS PER WEBSITE
News
Wipro appoints P R Chandrasekhar as Chief
Executive – Americas & Europe
Bangalore, July
24, 2005
Wipro Limited (NYSE: WIT) today
announced the appointment of P R “Sekar” Chandrasekhar as the Chief Executive
of Americas and Europe. Sekar has been leading the European Operations for
Wipro.
Under his leadership Wipro’s
European operations have consistently grown ahead of the industry, driven by
wins in a number of key deals, deepening of client engagements and expansion of
service lines, including addition of a strategic consulting unit.
In his earlier roles in Wipro, Sekar
has been responsible for Global M&A, Channel Development and the Global
.Net Business. He led Wipro’s initiatives in M&A which have bolstered
Wipro’s position as a leading Global IT services and BPO provider. He has also
had a successful stint in Wipro GE Medical Systems in Sales. Prior to joining
Wipro, Sekar was responsible for M&A for GE India.
Rich Garnick, Head of Wipro’s
America Sales has resigned after four years at Wipro. Rich has contributed to
institutionalizing the sales processes in North America, and in making Wipro a
market leader across services lines.
Commenting on this change, Mr. Azim
Premji, Chairman, Wipro Limited said, “Sekar brings in a wealth of experience,
having worked in multiple strategic and sales roles. His ability to create a
win-win with customers is further enhanced by his deep prior experience in the
Americas and Europe. Increasingly, they find that their clients work with them
across multiple geographies and having a common head for Europe and the
Americas will align them better with this trend.” He added, “Rich has
contributed to building their sales engine in North America. They wish him
success in his future endeavors.”
Reflecting on his tenure at Wipro,
Rich Garnick said, “Wipro has grown tremendously in its ability to engage and
add value to customers, and it has been exciting to have been part of this
transformation. Given this phenomenal growth and the associated travel, I have
not been able to spend enough time with my family and there comes a time when
you need to focus on the family and that is the key driver of my decision to
leave Wipro. I am sure that the sales organization they have built will
continue to make significant progress, under the leadership of Sekar.”
Commenting on his new role, P R
Chandrasekar said, “North America is their largest market and I am very excited
by the opportunity to grow their business there. They have a great team in
place and I am confident that given their renewed focus on furthering the depth
of their services lines and increased investments in sales and marketing, they
will be able to drive market leadership.”
Rich will work with Sekar to
facilitate a smooth transition. Sekar will be relocating to the US, while
working very closely with the strong team that he leads in Europe.
About
Wipro
Wipro Limited is
the first PCMM Level 5 and SEI CMM Level 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. In the Indian market, Wipro is a leader in
providing IT solutions and services for the corporate segment in India offering
system integration, network integration, software solutions and IT services.
Wipro also has profitable presence in niche market segments of consumer
products and lighting. In the Asia Pacific and Middle East markets, Wipro
provides IT solutions and services for global corporations.
Wipro's ADSs are listed on the New
York Stock Exchange, and its equity shares are listed in India on the Stock
exchange - Mumbai, and the National Stock Exchange, among others.
Wipro’s complete
range of IT Services addresses the needs of both technology and business
requirements to help organizations leverage leading-edge technologies for
business improvement. 
Wipro takes charge of the IT needs of the
entire enterprise. The gamut of services extends from Enterprise Application
Services (CRM, ERP, e-Procurement and SCM), to e-Business solutions. Wipro’s
enterprise solutions have served and continue to serve clients from a range of
industries including Energy and Utilities, Finance, Telecom, and Media and
Entertainment.
A Cycle of Define,
Perform, Review and Refine
The client is the world’s third largest
water company, and provides clean and waste water services to over 69 million
customers around the world. The client had embarked on a journey to streamline
their IS operations to ensure better service delivery, improved customer relationship
and closer links with business. They also wanted to move to a ‘thin’ layer of
IS. This was a challenge considering that the client consists mostly of bespoke
applications using a wide spectrum of technologies and functional areas that
cover all the business functionality of a typical water utility.
Through a series of strategic initiatives
over a two year period, Wipro made the client realize significant cost savings
as well as remarkably improve the quality of the application estate. This was
done by following a cycle of define, perform, review and refine, for each of
the functions that Wipro was entrusted with. Wipro devised and implemented a
strategy for cost savings by leveraging on its Global Sourcing model. The
savings in the application support budget was also enabled through a system of
forecasting and reviewing service requirements with partners and third party
vendors.
They've
developed a model called "Extended Engineering” that leverages synergies
across the value chain
As product manufacturers and platform vendors across the world strive to make
better products with shorter development cycles and reduced total cost of
ownership, they at Wipro Technologies partner with them to provide
comprehensive solutions in product lifecycle management and product
realization. At Wipro, they've developed a model called "Extended
Engineering" that allows you to leverage synergies across the
value chain and progress swiftly from concept to market. They are now the
world's largest contract R&D house for telecom, auto and electronics.
Industries served
Automotive
Electronics
Computing
Peripherals
Computing
Platforms and Software Products
Consumer
Electronics
Industrial
Automation and Avionics
Medical
Devices
Semiconductors
Storage
Technologies
Telecommunication Solutions
Broadband
Optical
Networks
Space Communications
Voice and
Next-Generation Networks
Wireless
Networks and Devices
Wipro plugs R&D Service into Innovation Networks
Wipro, the world’s
largest third party R&D services provider, has built a 10,000-strong
Product Engineering Solutions (PES) group that offers a complete range of
R&D services — from product strategy to hardware design to quality
consulting — to clients that sell electronics-based products. With more than
120 active clients in industries such as semiconductor, automotive, platforms
and peripherals, consumer electronics, and medical devices, PES revenues have
grown at 36% for the past three years. R&D services now accounts for 36% of
Wipro's total revenues. By putting its extended engineering capabilities on
play in global Innovation Networks, Wipro is making R&D services the next
battleground.
True value
from technology requires an in-depth understanding of business strategy.
Today’s businesses
need partners who can talk about strategy and technology in the same
conversation. At Wipro, they believe true value from technology requires an
in-depth understanding of business strategy. Their cross-industry consulting
services help you craft a vision for the organization and then provide a
specific, practical business and technology framework that will make that
vision a reality. Their consulting competencies spread across business,
process, quality and technology consulting.
Refining
Business Strategy
The client is an
online financial services company that aggregates capital from small size
investments to access large size institutional-quality private investments. The
challenge was to build a private equity investment Net Market and generate a
significant volume of transactions while adhering to complex and restrictive
regulatory requirements and accommodating for multi-national users.
Wipro built the private equity Net Market adhering to complex and restrictive
regulatory requirements administered by the SEC and NASD and accommodating
multi-national users. Wipro achieved this through refining business strategy,
creating a new Internet-based business model, building the technology backbone
for the Net Market and providing thought leadership, business strategy, deep
technology, and user experience skills.
FOR IMMEDIATE
RELEASE
Results for the
quarter ended Sept 30, 2007 under Consolidated Indian GAAP
Wipro Records 35%
YoY Growth In Revenues Revenue In Global IT Business Was $796.5 Million , 35%
YoY
Bangalore, October
19, 2007 –Wipro Limited today announced its results approved by the Board of
Directors for the quarter ended Sept 30, 2007.
Highlights of the
Results
- Wipro Limited Revenue increased by 35% Year
on Year (YoY) to Rs. 47,847 million; Profit After Tax (PAT) was Rs. 8,237
million.
- Global IT Services & Products
Revenue in dollar terms was $796.5 million , a sequential growth of 9.7%
and YoY growth of 35%. In rupee terms, Revenue stood at Rs. 32,490
million, a sequential growth of 10%.
- Profit Before Interest & Tax (PBIT)
for Global IT Services and Products segment stood at Rs. 7,265 million and
grew 14% sequentially. At 22.4%, PBIT as percentage of Revenues expanded
by 80 basis points as compared to previous quarter.
- During the quarter, Wipro won several L
arge Deals including one with Total Contract Value (TCV) of $275 million
and another with TCV of $160 million over multiple years.
- Wipro broadened its campaign around the Applied Innovation
theme by launching the first ever global awards to recognize best
practices in co-innovation and global sourcing .
- Wipro and SAP AG announced an expansion
of their existing partnership with Wipro becoming a SAP global services
partner.
- Wipro’s India, Middle East & Asia Pac business
recorded 72% growth in Revenues YoY. PBIT grew 48% YoY. Revenues have
grown at three times market growth rate in the first half year.
- Wipro Consumer Care and Lighting
business Revenue grew 84% YoY and PBIT grew 79% YoY.
- Results of Unza have been consolidated
from August 1, 2007.
- Wipro declares an interim dividend of Rs. 2 per share
/ADS.
Performance for
the Quarter ended Sept 30, 2007 and Outlook for Quarter ending December 31,
2007
Azim Premji,
Chairman of Wipro, commenting on the results said –
“The results for
the quarter demonstrate strong execution by Team Wipro on all fronts. Revenues
from our Global IT Services at $796.5 million for the quarter, including
Revenues of $6.4 million from Infocrossing, were ahead of our guidance of $ 777
million. We saw broad-based growth across Verticals, Services and Geographies.
During the quarter, we won some large multi -million dollar deals and the deal
pipeline continues to be robust. Building out its theme of benefiting clients through
Applied Innovation, Wipro partnered with global industry bodies to launch the
first ever global awards to recognize best practices in co -innovation and
global sourcing . Wipro completed its landmark Infocrossing acquisition through
a successful tender o ffer.
Looking ahead, for
the quarter ending December 2007, we expect our Revenue from our Global IT
Services business to be approximately $905 million, including Revenues of
around $60 million from acquisitions.”
Suresh Senapaty, Chief
Financial Officer of Wipro, said –
“Our performance
on profitability demonstrates the resilience of our business model. Improved
Realizations and superior management of key operating parameters like Offshore
mix, Utilization and Bulge helped us not only fully mitigate the adverse impact
on account of Offshore salary increases but also deliver an Operating Margin
expansion of 80 basis points”.
Wipro Limited
Revenues for the
Quarter ended September 30, 2007, were Rs. 47,847 million, representing a 35%
increase YoY. Profit after Tax for the quarter was Rs. 8,237 million, an
increase of 18% YoY and 14% sequentially.
Global IT Services
and Products
Global IT Services
& Products reported Revenues of Rs. 32,490 million for the Quarter ended
September 30, 2007, representing an increase of 10% sequentially and PBIT of
Rs. 7,265 million. Operating Income to Revenue for the quarter was 22.4%,
representing an expansion of 80 basis points compared to previous quarter and
thus, demonstrating the resilience of our business model. Our Technology
Business contributed 32.7% of the Revenues of Global IT Services and our
Enterprise Business contributed 67.3%.
We had 77,478
employees as of September 30, 2007 including 926 employees who joined us as
part of Infocrossing acquisition. As compared to previous quarter, this
represents a net addition of 5,341 people, comprised of 4,463 employees in our
IT Services & Products business and 878 employees in our BPO business. Our
Global IT Services and Products business added 59 new clients during the
quarter, of which 6 were Global 500 or Fortune 1000 companies. It comprised of
26 new Technology clients and 33 new Enterprise clients.
Global IT Services
& Products segment accounted for 68% of the Revenue and 85% of the PBIT for
the quarter ended Sept 30, 2007.
During the
quarter, Wipro completed the acquisition of Infocrossing , a US-based
provider of IT Infrastructure Management, Enterprise Application and Business
Process Outsourcing services through a successful tender offer. This
acquisition broadens the Data-center and Mainframe capabilities of Wipro and
reinforces its position as an industry leader in the Infrastructure Management
space. Infocrossing is also a leader in Platform based solutions in Health Plan
& Payer Management and processes over 175 million claims annually for over
90 managed care organizations. The results of the acquisition have been
consolidated with effect from September
20, 2007.
Wipro entered into
an agreement with Nokia Siemens Networks in October 2007, whereby all
Radio Access R&D activities currently performed in Berlin are planned to be
provided to Nokia Siemens Networks by Wipro Technologies in the future. Wipro
also announced a strategic partnership with Oki Electric Industry Co.,
Ltd. (TSE: 6703) and has signed a definitive agreement to acquire Oki Techno
Centre Singapore Pte. Ltd including its Intellectual property rights. Results
of the acquisition will be consolidated from quarter ended December 2007.
Deal Wins
Some of the key
deals won during the quarter are:
Infocrossing Inc, the newly acquired
Wipro subsidiary, was awarded a $275 million contract to provide fiscal
agent services to Missouri HealthNet program into 2014.
Wipro bagged a
large Total Infrastructure Outsourcing order from a U.S.-based Technology
company. The $160 million contract spread over seven years
encompasses end-to-end IT Infrastructure M anagement.
Wipro has won a
project from a leading Insurance company in US with TCV of more than $50
million. The engagement to be executed over a 2 year pe riod includes
implementation of Billing solution and provision of Business testing services.
This strategic transformational program seeks to simplify the customer’s
billing systems and processes by moving to an Insurance Industry solution from
SAP and help them achieve faster time to market, improved customer experience
and increase market presence.
In a multi-year
engagement with one of the leading US retailers, Wipro is implementing
an organization-wide Oracle Retail solution to transform the retailer’s
Merchandise Management and integration in addition to simplifying the company’s
customer portfolio architecture and streamlining its business operations.
Wipro won a
multi-year large Managed Services engagement with a diversified global
financial services company headquartered in US and having global
operations. Wipro will be leveraging multiple service lines to deliver these
services.
During the
quarter, Wipro also won a deal for mobile device testing from one of the leading
telecom service providers in the Asia Pacific. This is one of the largest
Independent Testing win for Wipro.
Alliances &
Partnerships
In an effort to
accelerate growth and innovation for businesses around the globe, Wipro and
SAP AG announced an expansion of their existing partnership. As part of the
agreement, Wipro will become an SAP Global Services Partner and will
establish a solutions lab in Bangalore to showcase the benefits of Enterprise
Service-Oriented Architecture, industry best practices and innovative
service-delivery models.
Lockheed Martin, the world’s
largest defense contractor anno unced the opening of its Network Centric
Operations Centre in Gurgaon, India in partnership with Wipro. Known as Ambar
Jyoti, this lab will develop, demonstrate and experiment with emerging
network-enabled capabilities and applications.
During the quarter
we announced the launch of Mission10x an outcome of our Quantum
Innovation program . It is aimed at promoting systemic changes to current
teaching-learning paradigms in Engineering Education. Wipro is doing this in
collaboration with Academia to enhance Graduate Engineer’s employability significantly.
Mission10x will be launched across the country in a phased manner.
Applied Innovation
Continuing its
positioning campaign around the theme of Applied Innovation, this quarter Wipro
launched the first ever global awards to recognize best practices in
co-innovation and global sourcing. The Applied Innovation Awards for
Business Excellence in collaboration with the IT Association of America,
International Association of Outsourcing Professionals and Forbes.com received
an overwhelming response from leading innovative organizations across the
globe. 12 innovations that have resulted in measurable business transformation
through co-innovation or global sourcing will be recognized in New York. The
awards event coincides with the Wipro -Forbes.com Applied Innovation
Conference, a C-level conference that will focus on emerging innovation
paradigms and the social impact of innovation. A similar Award was instituted
to recognize internal innovations that benefited clients and saw over 240
Wiproites submit applications.
To facilitate
dialog on the theme of Applied Innovation, Wipro also launched its Applied
Innovation Council, a high-level forum comprising of Wipro customers,
industry experts, analysts and thought leaders to analyze industry trends and
work on collaborative solutions to address new consumers, markets and business
challenges.
Global Footprint:
As a part of our
strategic initiatives to build strong delivery capabilities beyond India,
manage risk better and improve cultural diversity, Wipro announced the opening
of Wipro’s first US development centre in Atlanta, Georgia. Wipro
expects to fill 200 positions at this center in the first year. A near-shore
center in Monterrey, Mexico was also set up during the quarter.
Awards and
Recognition:
During the quarter
, Wipro & Nortel won the “Best Offshore award" at the distinguished
2007 Outsourcing Excellence Awards for its 360-degree engagement model with
Wipro spanning 16 years.
Wipro was also
awarded Microsoft ‘Top Partner’ Award for exceptional work in closing
deals and taking the partnership to the next level.
Wipro was ranked 5th
in Asia Pacific region and 20th globally 'Top Companies for Leaders' 2007
Survey conducted by Hewitt Associates, Fortune Magazine, and The RBL Group
among 563 participating companies globally.
Wipro was named one
of 10 technology companies to watch by Bank Technology News in August 2007.
Wipro was the only Indian IT company to feature in this elite industry ranking.
During the quarter
Wipro was positioned as a Strong Performer in “The Forrester Wave™: Security
Consulting, Q3 2007”, Forrester Research, Inc., September, 2007. Wipro is the
only Indian Company to feature in this independent report.
Wipro -New Logic
was rated as “#1 supplier of Wireless LAN and Bluetooth IP worldwide” according
to Gartner, In c.’s Semiconductor IP Survey (Source: Source: Gartner, Inc.,
"Market Share: Semiconductor Intellectual Property, Worldwide, 2006"
Christian Heidarson, 20 June 2007).
During the
quarter, Wipro was ranked as the leader among Offshore Call Center firms in
the customer and business awards category in the Annual Offshore 100 ranking of
top global suppliers by Managing Offshore and offshore outsourcing advisory
expert neoIT.
In September 2007,
Wipro won the “Energy Efficient Unit Award" at the National Award
for Excellence in Energy Management 2007 conducted by CII – Godrej GBC. Wipro’s
New Development Center in Cochin achieved Gold Rating in the Leadership
in Energy and Environment Design (LEED) category from US Green
Building Council.
Wipro Infotech –
Our India, Middle East & Asia Pacific IT Services & Products business
For the quarter
ended September 30 , 2007, Wipro Infotec h recorded Revenues of Rs 9,312
million, a growth of 72% YoY and Profit before Interest and Tax of Rs.
691 million, a growth of 48% YoY. Services business contributed 31% to
total Revenue during the quarter and grew by 40% YoY.
We continue to
have leadership position in India and Middle East. Revenues for the first half
year have grown at 3 times the market growth rate driven by comprehensive
service portfolio and a compelling value proposition to our customers. The
funnel for large outsourcing contracts and integrated deals is very healthy
across India and Middle East.
Marquee wins in
the quarter include a comprehensive SAP implementation project at ITC,
next generation ecommerce platform creation for Future E-Commerce
Infrastructure Ltd, People Soft HRMS implementation at J&K Bank,
infrastructure integration projects for BSNL, Indian Overseas Bank and
Bhilai Steel Plant.
Oracle
named Wipro Infotech as System Integration Partner of the Year
in APAC region while Symantec recognized Wipro Infotech as the largest
Enterprise Partner in India.
Wipro
Infotech accounted for 19% of the Revenue and 8% of the PBIT for the quarter
ended Sept 30, 2007.
Wipro
Consumer Care & Lighting
For
the quarter ended September 30, 2007, Wipro Consumer Care and Lighting business
recorded Revenues of Rs. 3,726 million, a growth of 84% YoY and PBIT of Rs. 440
million, a growth of 79% YoY. PBIT to Revenue was 11.8% for the quarter. Wipro
Consumer Care & Lighting accounted for 8% of the Revenue and 5% of the PBIT
for the quarter ended September 30, 2007.
Results
of Unza, a leading Personal Care Company based in Singapore acquired during the
quarter, have been consolidated from August 1, 2007.
Wipro
Limited
For
the quarter ended Sept 30, 2007, the Return on Capital Employed in Global IT
Services & Products business was 49%, Wipro Infotech was 40% and Consumer
Care and Lighting was 18%. At the Company level, the Return on Capital Employed
was 28%, lower due to inclusion of cash and cash equivalents of Rs. 32,792
million in Capital Employed (24% of Capital Employed).
For
Wipro Limited, Profit after Tax computed in accordance with US GAAP for the
Quarter ended September 30, 2007, was Rs. 8,121 million. The net difference
between Profits computed in accordance with Indian GAAP and US GAAP is
primarily due to different Revenue recognition standards, deferred taxes and
amortization of intangible assets.
Global
IT Services & Products segment’s Revenues were Rs. 32.4 billion for the
quarter ended September 30, 2007, under US GAAP. The difference of Rs. 36
million is primarily attributable to difference in accounting standards under
Indian GAAP and US GAAP .
Quarterly
Conference call
Wipro
will hold conference calls today at 11:45 am Indian Standard Time (2:15 am US
Eastern Time) and at 6:45 pm Indian Standard Time (9:15 am US Eastern Time) to
discuss the company’s performance for the quarter and answer questions sent to
email ID: rajesh.ramaiah@wipro.com An audio broadcasting of the
management discussions and the question and answer session will be available
online and will be accessible in the Investor Relations section of the company
website at www.wipro.com .
About
Wipro Limited
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. Wipro Limited is the first PCMM Level 5 and SEI CMM
Level 5 certified IT Services company globally. Wipro’s Global IT Services
business was recently assessed at Level 5 for CMMI V 1.2 across Offshore and
Onsite development centers.
In the
Indian market, Wipro is a leader in providing IT solutions and services for the
corporate segment in India offering system integration, network integration,
software solutions and IT services. Wipro also has a profitable presence in
niche market segments of infrastructure engineering, and consumer products
& lighting. In the Asia Pacific and Middle East markets, Wipro provides IT
solutions and services for global corporations.
Wipro’s
ADSs are listed on the New York Stock Exchange, and our equity shares are
listed in India on the Stock Exchange - Mumbai, and the National Stock
Exchange.
US
GAAP financials on website
Condensed
financial statements of Wipro Limited computed under the US GAAP along with individual
business segment reports are available in the Investor Relations section at www.wipro.com.
Forward
looking and cautionary statements
Certain
statements in this release concerning our future growth prospects are
forward-looking statements, which involve a number of risks, and uncertainties
that could cause actual results to differ materially from those in such
forward-looking statements. The risks and uncertainties relating to these
statements include, but are not limited to, risks and uncertainties regarding
fluctuations in our earnings and revenue, our ability to manage growth, intense
competition in IT services including those factors which may affect our cost
advantage, wage increases in India, our ability to attract and retain highly
skilled professionals, time and cost overruns on fixedprice, fixed-time frame
contracts, client concentration, restrictions on immigration, our ability to
manage our international operations, reduced demand for technology in our key
focus areas, disruptions in telecommunication networks, our ability to
successfully complete and integrate potential acquisitions, liability for
damages on our service contracts, the success of the companies in which we make
strategic investments, withdrawal of fiscal governmental incentives, political
instability, war, legal restrictions on raising capital or acquiring companies
outside India, unauthorized use of our intellectual property and general
economic conditions affecting our industry. Additional risks that could affect
our future operating results are more fully described in our filings with the
United States Securi ties and Exchange Commission. These filings are available
at www.sec.gov. We may, from time to time, make
additional written and oral forward -looking statements, including statements
contained in the company’s filings with the Securities and Exchange Commission
and our reports to shareholders. We do not undertake to update any forward
-looking statement that may be made from time to time by us or on our behalf.
WIPRO LIMITED, CONSOLIDATED
AUDITED SEGMENT REPORT FOR THE QUARTER & SIX MONTHS ENDED SEPTEMBER
30, 2007
Rs. in Million
|
|
Quarter ended September 30, |
Six months ended September 30, |
Year ended March 31, |
||||
|
2007 |
2006 |
Growth % |
2007 |
2006 |
Growth % |
2007 |
|
|
Revenues |
|
|
|
|
|
|
|
|
IT Services |
29452 |
24906 |
18 % |
56436 |
47313 |
19 % |
101554 |
|
Acquisitions |
254 |
|
|
254 |
|
|
|
|
BPO Services |
2784 |
2299 |
21 % |
5299 |
4397 |
21 % |
9391 |
|
Global IT Services and Products |
32490 |
27205 |
19 % |
61989 |
51710 |
20 % |
110945 |
|
India & AsiaPac IT Services and Products |
9312 |
5426 |
72 % |
16813 |
9990 |
68 % |
24835 |
|
Consumer Care and Lighting |
3726 |
2025 |
84 % |
6076 |
3793 |
60 % |
8182 |
|
Others |
2587 |
1098 |
136 % |
5541 |
1902 |
191 % |
7130 |
|
Eliminations |
[268] |
[292] |
|
[539] |
[508] |
|
[1084] |
|
TOTAL |
47847 |
35462 |
35 % |
89880 |
66887 |
34 % |
150008 |
|
Profit before Interest and Tax – PBIT |
|
|
|
|
|
|
|
|
IT Services |
6618 |
6113 |
8 % |
12405 |
11706 |
6 % |
24782 |
|
Acquisitions |
22 |
|
|
22 |
|
|
|
|
BPO Services |
625 |
526 |
19 % |
1199 |
952 |
26 % |
2157 |
|
Global IT Services and Products |
7265 |
6639 |
9 % |
13626 |
12658 |
8 % |
26939 |
|
India & AsiaPac IT Services and Products |
691 |
468 |
48 % |
1259 |
821 |
53 % |
2139 |
|
Consumer Care and Lighting |
440 |
246 |
79 % |
745 |
477 |
56 % |
1006 |
|
Others |
132 |
95 |
39 % |
191 |
164 |
16 % |
322 |
|
TOTAL |
8528 |
7448 |
15 % |
15821 |
14120 |
12 % |
30406 |
|
Interest (Net) and Other Income |
658 |
512 |
29 % |
1526 |
1019 |
50 % |
2582 |
|
Profit Before Tax |
9186 |
7960 |
15 % |
17347 |
15139 |
15 % |
32988 |
|
Income Tax expense including Fringe Benefit Tax |
[1046] |
[1050] |
|
[2050] |
[2090] |
|
[3868] |
|
Profit before
Share in earnings of associates and minority interest |
8140 |
6910 |
18 % |
15297 |
13049 |
17 % |
29120 |
|
Share in earnings of associates |
96 |
92 |
|
193 |
157 |
|
295 |
|
Minority interest |
1 |
- |
|
3 |
- |
|
6 |
|
PROFIT AFTER TAX |
8237 |
7002 |
18 % |
15493 |
13206 |
17 % |
29421 |
|
Operating Margin |
|
|
|
|
|
|
|
|
IT Services |
22 % |
26 % |
|
22 % |
25 % |
|
24 % |
|
Acquisitions |
9 % |
|
|
9 % |
|
|
|
|
BPO Services |
22 % |
23 % |
|
23 % |
22 % |
|
23 % |
|
Global IT Services and Products |
22 % |
24 % |
|
22 % |
24 % |
|
24 % |
|
India & AsiaPac IT Services and Products |
7 % |
12 % |
|
7 % |
8 % |
|
9 % |
|
Consumer Care and Lighting |
12 % |
12 % |
|
12 % |
13 % |
|
12 % |
|
TOTAL |
18 % |
21 % |
|
18 % |
21 % |
|
20 % |
|
CAPITAL EMPLOYED |
|
|
|
|
|
|
|
|
IT Services |
47427 |
36241 |
|
47427 |
36241 |
|
46454 |
|
Acquisitions |
22088 |
-- |
|
22088 |
-- |
|
|
|
BPO Services |
3055 |
1991 |
|
3055 |
1991 |
|
2493 |
|
Global IT Services and Products |
72570 |
38232 |
|
72570 |
38232 |
|
48947 |
|
India & AsiaPac IT Services and Products |
6652 |
2372 |
|
6652 |
2372 |
|
5363 |
|
Consumer Care and Lighting |
16612 |
2488 |
|
16612 |
2488 |
|
2957 |
|
Others |
41041 |
40662 |
|
41041 |
40662 |
|
42584 |
|
TOTAL |
136875 |
83754 |
|
136875 |
83754 |
|
99851 |
|
CAPITAL EMPLOYED COMPOSITION |
|
|
|
|
|
|
|
|
IT Services |
35 % |
43 % |
|
35 % |
43 % |
|
47 % |
|
Acquisitions |
16 % |
-- |
|
16 % |
-- |
|
-- |
|
BPO Services |
2 % |
2 % |
|
2 % |
2 % |
|
2 % |
|
Global IT Services and Products |
53 % |
45 % |
|
53 % |
45 % |
|
49 % |
|
India & AsiaPac IT Services and Products |
5 % |
3 % |
|
5 % |
3 % |
|
5 % |
|
Consumer Care and Lighting |
12 % |
3 % |
|
12 % |
3 % |
|
3 % |
|
Others |
30 % |
49 % |
|
30 % |
49 % |
|
43 % |
|
TOTAL |
100 % |
100 % |
|
100 % |
100 % |
|
100 % |
|
RETURN ON AVERAGE CAPITAL EMPLOYED |
|
|
|
|
|
|
|
|
IT Services |
58 % |
71 % |
|
53 % |
70 % |
|
64 % |
|
Acquisitions |
1 % |
-- |
|
-- |
-- |
|
|
|
BPO Services |
86 % |
47 % |
|
86 % |
46 % |
|
49 % |
|
Global IT Services and Products |
49 % |
68 % |
|
45 % |
67 % |
|
63 % |
|
India & AsiaPac IT Services and Products |
40 % |
67 % |
|
42 % |
69 % |
|
55 % |
|
Consumer Care and Lighting |
18 % |
42 % |
|
15 % |
52 % |
|
48 % |
|
TOTAL |
28 % |
37 % |
|
27 % |
37 % |
|
36 % |
Notes to Segment
Report
a) The segment
report of Wipro Limited and its consolidated subsidiaries and associates has
been prepared in accordance with the Accounting Standard 17 "Segment
Reporting" issued by The Institute of Chartered Accountants of India.
b) Segment revenue
includes all allocable other income and exchange diffe rences which are
reported in other income.
c) PBIT for the
quarter and six month ended September 30, 2007 is after considering restricted
stock unit amortisation of Rs. 286 Million (2006: Rs. 448 Million & 2007:
Rs 1078 Million) and Rs. 572 Million (2006: Rs 596 Million & 2007: Rs 1078
Million). PBIT of Global IT Services and Products for the quarter and six month
ended September 30, 2007, is after considering restricted stock unit
amortisation of Rs. 250 Million (2006: Rs. 392 Million & 2007: Rs 936
Million) and Rs. 497 Million (2006: Rs.522 Million & 2007: Rs. 936 Million)
d) Capital
employed of segments is net of current liabilities which is as follows :–
(Rs. in Million)
|
Name of the
Segment |
As of Sep 30, |
As of March 31, |
|
|
|
2007 |
2006 |
2007 |
|
Global IT
Services and Products |
28953 |
17711 |
18501 |
|
India &
AsiaPac IT Services and Products |
9394 |
6484 |
7580 |
|
Consumer Care
and Lighting |
3356 |
1327 |
1537 |
|
Others |
9953 |
8008 |
14765 |
|
Total |
51656 |
33530 |
42383 |
e) Capital
employed of ‘Others’ includes cash and cash equivalents includi ng liquid mutual
funds of Rs. 32,792 Million (2006: Rs. 33,826 Million & 2007 Rs. 42,652
Million).
f) The Company has
four geographic segments: India, USA, Europe and Rest of the World. Significant
portion of the segment assets are in India. Revenue from g eographic segments
based on domicile of the customers is outlined below:
(Rs. in Million)
|
|
Quarter ended September 30, |
Six month ended
September 30, |
Year ended March 31, |
|||||||
|
2007 |
% |
2006 |
% |
2007 |
% |
2006 |
% |
2007 |
% |
|
|
India |
12003 |
25 |
7131 |
20 |
22432 |
25 |
13072 |
20 |
31371 |
21 |
|
USA |
20272 |
42 |
18063 |
51 |
39425 |
44 |
34453 |
52 |
72702 |
48 |
|
Europe |
11717 |
25 |
8181 |
23 |
22262 |
25 |
15697 |
23 |
36972 |
25 |
|
Rest of the World |
3855 |
8 |
2087 |
6 |
5761 |
6 |
3665 |
5 |
8963 |
6 |
|
Total |
47847 |
100 |
35462 |
100 |
89880 |
100 |
66887 |
100 |
120008 |
100 |
g) For the purpose
of reporting, business segments are considered as primary segments and
geographic segments are considered as secondary segments.
h) The
acquisitions consummated during the year ended March 31, 2006 and 2007 were
reported separately in the segment report. The acquisitions have been
completely integrated into Global IT Services and Products and hence not
reported separately in the segment re port. Segment information for the
previous periods has accordingly been reclassified on a comparable basis.
i) The Company has
designated forward contracts and options to hedge highly probable forecasted
transactions based on the principles set out in International Accounting
Standard (IAS 39) on Financial Instruments. Until March 31, 2007, the exchange
differences on the forward contracts and gain / loss on such options were recognised
in the profit and loss account in the period in which the forecasted
transaction is expected to occur. As of September 30, 2006 and March 31, 2007
the Company had forward /option contracts to sell USD 201 million and USD 87
million respectively, relating to highly probable forecasted transactions. The
effect of mark to market of the designated contracts as of September 30, 2006
was a loss of Rs 27 million and as of March 31, 2007 was a gain of Rs 105
million. The premium / discount at inception of forward contracts was amortised
over the life of the contract.
Effective April 1,
2007, based on the recognition and measurement principles set out in the
Exposure Draft of the proposed Accounting Standard (AS-30) on Financial
Instruments: Recognition and Measurement, the changes in the derivative fair
values relating to forward contracts and options that are designated as
effective cash flow hedges of Rs 698 million, has been recognized directly in
shareholders’ funds until the hedged transactions occur. Upon occurrence of
the, hedged transaction the amounts recognised in the shareholders’ funds would
be reclassified into the profit and loss account.
As a result of
this change in the six month ended September 30, 2007, the shareholders’ funds
and loans and advances have increased by Rs. 698 million.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.39.32 |
|
UK Pound |
1 |
Rs.81.82 |
|
Euro |
1 |
Rs.56.90 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
81 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|