MIRA INFORM REPORT
|
Report
Date : |
05.09.2007 |
IDENTIFICATION DETAILS
|
Name : |
WIPRO
LIMITED |
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Registered
Office : |
Doddakannelli, |
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Country
: |
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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 |
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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,
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|
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: |
·
·
Chennai, Tamilnadu ·
Secunderabad, Andhra Pradesh ·
Pune, ·
Gurgaon, Haryana ·
·
Mumbai, |
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Factory : |
> > S B Towers, 88, M > 608-610,
>
> 271-27 1 A, Sri Ganesh
Complex,
068, > 26, Sri Chamundi Complex,
Madivala II, Bommanahalli, Hosur Main
Road, > No. l, 2, 3, 4 and 54/1,
Survey No. 201/C, Madivala III,
068, > No. l, 2, 3, 4 and 54/1,
Survey No. 201/C, Madivala III (Research &
Development), > No. 1 , 2, 3, 4 and 54/3,
Survey No.- 201/C, Madivala IV,
560 068, > 3rd Floor,
Road, > Subramanya Arcade,
> K-3 1 2, Koramangala
Industrial Layout,
> V Block, Koramangala, >
>
Road, > No.92, 2nd
561 229, > S. No. 70/1, 2, 3, 4(P)
&. 84/1, 2, 3,
Hobli, ' > Capitale, 552 &. 555,
Anna Salai, Teynampet, Chennai, Tamilnadu > 475A, Shollinganallur,
600 019, Tamilnadu > 111, Mount Road, Guindy, Chennai
- 600 032, Tamilnadu > No. 105, Guindy, > > > 239, Okhla Industrial Estate,
> 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,
District, > Survey Nos. 64,
Serilingampali Mandal, Madhapur,
033 > > Plot No. 1, 7, 8 & 9,
Block-DM, Sector- V, Saltlake, Kolkata - 700 091,
> 146/147, Mettagalli
Industrial Area, Mettagalli, > Vashi, Navi Mumbai, Mumbai, > Plot No. 2, MIDC,
> 1-8-448,
016 |
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Overseas
Offices : |
1300, Tel. No.
: 91-650-3163555 Fax No. :
91-650-3163467 Mimet House,
Tel. No.
: +44 [020] 70873770 Fax No. :
+44 [020] 72625360 Tel. No.
: +81 [45] 650 3950 Fax No. :
+81 [45] 650 3951 Wipro Technologies
1995, El
Camino Real, Tel. No.:
(408) 249 6345 Fax No.: (408)
6157174 / 6157178 15455 N.
W., 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, Tel. No.:
(972) 6716130 Fax No.: (972)
6716134 2432, W. Tel. No.:
(602) 8705780 Extn.: 101 100, W.
22nd Street, Tel. No.:
(630) 8899860 Fax No.: (630)
8899187 8901, Tel. No.:
(952) 9489683 Fax No.: (952)
9489684 12081, Tel. No.:
303-254 2457 Fax No.: 720-244
4872 Tel. No.:
978-372 9531 Fax No.: 978-372
9560 345,
Buckland Hills, Dr. Suite 7213, Tel. No.:
860-644 3657 Fax No.: 860-644
3667 220, Tel. No.:
(732) 4650401 Fax No.: (732)
4650420 Top
Floor, 2432, Room no.
1064, Hatanpaankatu 1 (Kulma-Sarvis), Web
Campus, Kaistrasse, 101 |
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Branches
: |
Wipro Infotech Software & Service
88,
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DIRECTORS
|
Name : |
Mr. Azim
Hashmi Premji |
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Designation
: |
Chairman |
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Date
of Appointment : |
01.09.1968 |
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|
|
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Name : |
Dr. Ashok
Ganguly |
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Designation
: |
Chairman,
ICICI OneSource Limited. Former Chairman, ICI India Limited |
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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 |
|
|
|
|
Name : |
Mr. Vivek
Paul |
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Designation
: |
Vice Chairman and Executive Officer |
|
Date
of Appointment : |
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|
|
|
Name : |
Mr.
Narayan Vaghul |
|
Designation
: |
Chairman, ICICI Bonk Limited |
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Date
of Appointment : |
09.06.1997 |
|
|
|
|
Name : |
Professor Eisuke Sakakibara |
|
Designation
: |
Professor
of Economics, Keio Universityjapan |
|
Date
of Appointment : |
|
|
|
|
|
Name : |
Mr. P. M.
Sinha |
|
Designation
: |
Former Chairman, PepsiCo |
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Date
of Appointment : |
01.01.2002 |
|
|
|
|
Name : |
Dr. Jagdish N Sheth |
|
Designation
: |
Professor
of Marketing, |
|
Date
of Appointment : |
01.01.1999 |
MAJOR SHAREHOLDERS
CATEGORY |
NO. OF SHARES |
PERCENTAGE (%) |
Promoters ' Holdings
|
|
|
|
Promoters
|
|
|
|
Promoters
in his capacity as partner of Partnership firms |
975520800 |
68.42 |
|
Promoter
in his capacity as director of Private Limited Companies |
128137800 |
8.99 |
|
Promoter
in his individual capacity |
56043060 |
3.93 |
|
Promoter
Director’s Relatives |
1434600 |
0.10 |
|
Sub Total |
1161136260 |
81.44 |
|
|
|
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Non Promoter's
Holdings
|
|
|
|
Mutual
Funds and UTI |
8161139 |
0.57 |
|
Banks,
Financial Institutions and Insurance Companies |
14024057 |
0.98 |
|
FIIs |
66695330 |
4.68 |
|
Sub Total |
88880526 |
6.23 |
|
|
|
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Others
|
|
|
|
Private
Corporate Bodies |
33197511 |
2.33 |
|
Indian
Public |
98080601 |
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 |
1425754267 |
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. |
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|
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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 : |
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Imports
from : |
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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
: |
Ř
Atco Controls India Private Limited Ř
Arya Filaments Private Limited Ř
Bhargava Rotopack Private Limited Ř
Bombay Oil Seals Company Ř
Capart Industries Private Limited
Ř
Everlite Corporation Ř
Exerlite Industries Ř
Fluo-Lite Private Limited Ř
Glostar Electricals Private Limited Ř
Har-Hal Plastic Engineering Private Limited Ř
Infocontral Systems Inc. Ř
Karthiks Ř
Kay Pee Industries Ř
Kasa Luminaties Private Limited Ř
Ř
Meet Engineering Private Limited Ř
Mercury Lamps Private Limited Ř
Prachi Industries Ř
Prospects Industries Ř
Ř
R C Industries Ř
Regal Luminaries Ř
Rotam Commercials Ř
Sandesh Electricals Ř
SOBO Technology Ř
Ř
Starlite Components Limited Ř
Sujatha Wood Industries Ř
Superstars Ř
Triumph Pack Private Limited Ř
Ujas Electricals Private Limited Ř
Unilux Ř
Unique Wires Private Limited Ř
Vijay Halo Coils Private Limited
Ř
Vijay Litetronics Comp Limited Ř
Vossloh-Schabe India Private Limited |
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Customers
: |
Ř
3COM Ř
ABN Amro Ř
Alcatel Ř
Allianz Church & General Ř
Analog Devices Ř
Aristasoft Ř
AT & T Ř
Baxter Ř
BSI Ř
BT Ř
Cisco Ř
Compaq Ř
ContentGuard Ř
Corel Ř
Cox & Kings Ř
Daiwa Ř
Energy.com Ř
Epson Ř
Ericsson Ř
Esupportnow.com Ř
Farmers insurance Ř
Franklin Templeton Ř
Fujitsu Ř
General Motors Ř
Genuity Ř
Geoutilities.com Ř
Home Depot Ř
HP Ř
IBM Ř
Ř
JP Morgan Ř
KPN Ř
Lucent Ř
Magneti Marelli Ř
Marconi Ř
Menlo Logistics Ř
Microsoft Ř
Mitsubishi Ř
Morgan Stanley Ř
NCR Ř
NEC Ř
Newbridge Ř
Nike Ř
Nortel Ř
Npower Ř
NTL Ř
OTIS Ř
PacifiCorp Ř
Pepco Energy Services Ř
Pindar Ř
Seagate Ř
Sharp Ř
Skandia Ř
Sonera Ř
Sony Ř
Spice Ř
Sun Ř
Sunquest Ř
Telstra Ř
Ř
Ř
Thomas Cook Ř
Trafalgar Tours Ř
Transco Ř
Tufts Healthplan Ř
TIBCO Ř
United Technologies Ř
US Wireless Ř
VLSI Ř
Weyerhaeuser Ř Winterthus |
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No. of
Employees : |
14000 |
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Bankers
: |
Ř
Canara Bank, Ř
State Bank of Ř
Citibank N.A., Ř American Express Banking
Corporation, |
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Facilities : |
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Banking Relations : |
Satisfactory
|
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Auditors
: |
N. M.
Raiji & Company Chartered Accountants |
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|
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Subsidiaries
: |
Wipro Enthink
Inc. Wipro
Inc. Wipro
Chandrlka Limited Wipro
Trademarks Holding Limited Wipro
Travel Services Limited Wipro
Fluid Power Limited Wipro
HealthCare IT Limited Wipro BPO
Solutions Limited Wipro
Holdings ( Wipro
Holdings UK Limited Wipro
Technologies ( Wipro
Shanghai Limited Wipro
Consumer Care Limited Cygnus
Nigri Investments Private Limited Wipro Infrastructure Engineering
Limited Spectramind Inc mPower software Services Inc. mPower Software Services ( Mpact Technologies Services
Private Limited BVPENTE Beteiligungsverwaltung
GMBH New Logic Technologies AG New Logic Technologies Inc. New Logic Technologies SARL New Logic Technologies S.A. Wipro Equity Reward Trust |
|
|
|
|
Associates
: |
Wipro GE
Medical Systems Private Limited WeP
Peripherals Limited |
|
|
|
|
Membership
: |
Confederation of Indian Industry |
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 |
|
1425754267 |
Equity Shares |
Rs. 2
each |
Rs.
2851.510 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 Qtr. ) |
|
Sales Turnover |
|
|
36791.000 |
|
Other Income |
|
|
977.000 |
|
Total Income |
|
|
37768.000 |
|
Total Expenditure |
|
|
28982.000 |
|
Operating Profit |
|
|
8786.000 |
|
Interest |
|
|
110.000 |
|
Gross Profit |
|
|
8676.000 |
|
Depreciation |
|
|
1073.000 |
|
Tax |
|
|
889.000 |
|
Reported PAT |
|
|
6714.000 |
Notes:
200706 Quarter 1 --------------- Notes:
Expenditure Includes Cost of Sales / Services - Consumption of Raw Materials*
Rs 5412.00 million - Other expenditure Rs 19260.00 million Selling &
Marketing Expenses Rs 2545.00 million General & Administrative expenses Rs
1765.00 million * includes(Increase)/ Decrease in finished and processed stocks
Rs 457.00 million Items exceeding 10% of total expenditure Staff Cost Rs
16488.00 million EPS is Basic Status of Investor Complaints for the quarter ended
June 30, 2007 Complaints Pending at the beginning of the quarter Nil Complaints
Received during the quarter 219 Complaints disposed off during the quarter 219
Complaints unresolved at the end of the quarter Nil 1. The above audited
financial results were approved by the Board of Directors of the Company at its
meeting held on July 19, 2007. 2. The total revenues represent the aggregate
revenue and includes all allocable other income and exchange differences which
are reported in other income / general and administrative expenses in the
financial statements. 3. 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 recognized in the profit and loss account in
the period in which the forecasted transaction is expected to occur. As of June
30, 2006 and March 31, 2007 the Company had forward /option contracts to sell
USD 335.40 million and USD 87 million respectively, relating to highly probable
forecasted transactions. The effect of mark to market of the designated
contracts as of June 30, 2006 was a loss of Rs 272 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 350 million, has been recognized directly in
shareholders' funds until the hedged transactions occur. Upon occurrence of
the, hedged transaction the amounts recognized in the shareholders' funds would
be reclassified into the profit and loss account. As a result of this change in
the quarter ended June 30, 2007, the shareholders funds and loans and advances
have increased by Rs 350 million. There was no impact on the profit and loss
account. 4. The Company has been granting restricted stock units (RSUs) since
October 2004. The RSUs generally vest in a graded manner over a five year
period. The stock compensation cost is computed under the intrinsic value
method and amortized on a straight line basis over the total vesting period of
five years. For the quarter ended June 30, 2007, the Company has recorded stock
compensation expense of Rs 271 Million. The Company has been advised by
external counsel that the straight line amortization over the total vesting
period also complies with the SEBI Employee Stock Option Scheme Guidelines
1999, as amended. However, an alternative interpretation of the SEBI guidelines
could result in amortization of the cost on an accelerated basis. If the
Company were to amortize cost on an accelerated basis, profit before taxes for
the quarter ended June 30, 2006 and 2007 would have been lower by Rs 26 million
and Rs 61 million respectively. This would effectively increase the profit
before tax in later years by similar amounts. 5. The Company had received tax
demands from the Indian Income Tax authorities for the financial years ended
March 31, 2001, 2002 and 2003 aggregating to Rs 8,100 Million (including
interest of Rs 750 Million). The tax demand was primarily on account of denial
of deduction claimed by the Company under Section 10A of the Income Tax Act
1961, in respect of profits earned by its undertakings in
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 |
STOCK PRICES
|
Face
Value |
Rs.10/- |
|
High |
Rs.474.00 |
|
Low |
Rs.469.10 |
LOCAL AGENCY FURTHER INFORMATION
History
Wipro is one of the leading players in providing
IT services & Products business globally. Wipro 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 Wipro 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 have 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.
Wipro 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.
Wipro 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
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
Continuing that the company spin-off of its Fluid Power business unit into a
separate subsidiary company effective
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
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
In 2006, The Honorable High Court of Karnataka has approved the Scheme of
Amalgamation for the merger of the Spectramind Limited, Bermuda, Spectramind Limited,
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
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
2. CMango - Transactions consummated in April 2006 - US based CMango Inc
and
3.
4.
5.
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,
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
Wipro Limited (NYSE: WIT) today
announced the appointment of P R “Sekar” Chandrasekhar as the Chief Executive
of
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
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
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, “
Rich will work with Sekar to
facilitate a smooth transition. Sekar will be relocating to the
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
Wipro's ADSs are listed on the New
York Stock Exchange, and its equity shares are listed in
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.
CMT REPORT [Corruption, Money laundering & Terrorism]
The Public Notice information has been collected from
various sources including but not limited to: The Courts,
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.40.94 |
|
|
1 |
Rs.82.26 |
|
Euro |
1 |
Rs.55.59 |
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 |
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/normal. |
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 |