MIRA
INFORM REPORT
|
Report Date : |
15.11.2008 |
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) : |
31.03.2008 |
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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, 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.: 91-408-249 6345 Fax No.: 91-408- 6157174 / 6157178 15455 N. W.,
Greenbrier Parkway, Suite 210, Beaverton, OR 97006, USA Tel. No.: 91-503- 4390825 Fax No.: 91-503- 4398426 10655 N. E., 4th
Street, Suite 400, Bellevue, WA 98004, USA Tel. No.: 91-425 -4553486 Fax No.: 91-425 -6880973 833, East Arapaho
Road, Suite 202, Richardson, TX 75081, USA Tel. No.: 91-972- 6716130 Fax No.: 91-972- 6716134 2432, W. Peoria
Avenue, Suite 1323, Phoenix, AZ 85029, USA Tel. No.: 91-602- 8705780 Extn.: 101 100, W. 22nd
Street, Suite 106, Lombard, IL 60148, USA Tel. No.: 91-630- 8899860 Fax No.: 91-630 -8899187 8901, Lyndale
Avenue, South Suite 106, Bloomington, MN 55420, USA Tel. No.: 91-952-9489683 Fax No.: 91-952- 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 |
|
Date of
Appointment : |
01.09.1968 |
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|
|
|
Name : |
Dr. Ashok Ganguly |
|
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 |
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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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|
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|
Name : |
Professor Eisuke
Sakakibara |
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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 |
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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 31.03.2008
|
|
NO. OF SHARES
|
PERCENTAGE (%)
|
Promoters ' Holdings
|
|
|
|
Indian |
|
|
|
Individuals/
Hindu Undivided Family |
57457660 |
3.93 |
|
Bodies Corporate
(Promoter in his Capacity as Director of Private Limited Companies) |
128137800 |
8.77 |
|
Any Other –
Partnership Firm |
975520800 |
66.75 |
|
Public Shareholding |
|
|
|
Institutions |
|
|
Mutual Fund UTI
|
557514 |
0.38 |
|
Financial
Institutions/ Banks |
13441526 |
0.92 |
|
Insurance
Companies |
16943742 |
1.16 |
|
Foreign Institutional
Investors |
76526027 |
5.24 |
|
Non
Institutions |
|
|
Bodies corporate
|
35403676 |
2.49 |
|
Individuals |
|
|
|
Individuals
shareholders holding nominal share capital up to Rs. 0.100 Million |
46731008 |
3.20 |
|
Individuals Shareholders holding nominal share capital in excess of
Rs. 0.100 Million |
57052335 |
3.90 |
|
Any Other
(Specify) |
|
|
|
Non Resident
Indians |
16959859 |
1.16 |
|
Trusts |
7966469 |
0.55 |
|
Non Executive
Directors and Relatives |
23000 |
0.00 |
|
Clearing Members |
491094 |
0.03 |
|
Total |
1461453320 |
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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Products : |
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Exports to : |
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Imports from : |
Germany, Japan,
Singapore, UK and USA |
PRODUCTION STATUS
|
Particulars |
Unit |
|
Licensed Capacity |
Installed Capacity |
|
Vanaspati/Hydrogenated oils |
TPA |
|
144000 |
45000 |
|
Toilet soaps |
TPA |
|
64000 |
47930 |
|
Leather shoe uppers, leather shoes and allied articles |
Pairs / Nos. [1000s] p.a. in millions |
|
750 |
750 |
|
Fatty acids |
TPA |
|
20000 |
20000 |
|
Glycerine |
TPA |
|
2000 |
1800 |
|
GLS lamps |
000s |
|
50000 |
50000 |
|
TL shells |
000s |
|
12694 |
12694 |
|
Fluorescent tube lights |
000s |
|
10694 |
10694 |
|
CFL |
Nos. in 000s |
|
6658 |
6658 |
|
Mini computers/micro processor based systems and data communication
systems |
NPA |
|
180000 |
180000 |
GENERAL
INFORMATION
|
Suppliers : |
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|
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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 |
|
|
|
|
Bankers : |
|
|
|
|
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Banking
Relations : |
Satisfactory |
|
|
|
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Auditors : |
|
|
Name : |
N. M. Raiji &
Company Chartered
Accountants |
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Subsidiaries : |
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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 |
|
1461453320 |
Equity Shares |
Rs. 2/- each |
Rs. 2923.000
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
2923.000 |
2918.000 |
2851.510 |
|
|
2] Share Application Money |
40.000 |
35.000 |
74.860 |
|
|
3] Share Issuable |
540.000 |
0.000 |
0.000 |
|
|
4] Reserves & Surplus |
112604.000 |
90251.000 |
61353.010 |
|
|
5] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
116107.000 |
93204.000 |
64279.380 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
40.000 |
232.000 |
450.580 |
|
|
2] Unsecured Loans |
38184.000 |
2148.000 |
51.030 |
|
|
TOTAL BORROWING |
38224.000 |
2380.000 |
501.610 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
154331.000 |
95584.000 |
64780.990 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
22822.000 |
16459.000 |
11182.520 |
|
|
Capital work-in-progress |
13350.000 |
9895.000 |
6123.580 |
|
|
|
|
|
|
|
|
INVESTMENT |
45001.000 |
43487.000 |
34592.030 |
|
|
DEFERREX TAX ASSETS |
517.000 |
466.000 |
381.380 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
4481.000
|
2404.000 |
1486.510 |
|
|
Sundry Debtors |
36466.000
|
25439.000 |
19680.670 |
|
|
Cash & Bank Balances |
37321.000
|
18492.000 |
8230.020 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
41796.000
|
17266.000 |
10988.170 |
|
Total
Current Assets |
120064.000
|
63601.000 |
40385.370 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
33616.000
|
30672.000 |
17768.340 |
|
|
Provisions |
13807.000
|
7652.000 |
10115.550 |
|
Total
Current Liabilities |
47423.000
|
38324.000 |
27883.890 |
|
|
Net Current Assets |
72641.000
|
2527.700 |
12501.480 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
154331.000 |
95584.000 |
64780.990 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
Sales Turnover |
174926.000 |
136839.000 |
102640.900 |
|
|
Other Income |
3269.000 |
2687.000 |
1524.100 |
|
|
Total Income |
178195.000 |
139526.000 |
104165.000 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
34697.000 |
31762.000 |
23396.800 |
|
|
Provision for Taxation |
4064.000 |
3341.000 |
3192.000 |
|
|
Profit/(Loss) After Tax |
30633.000 |
28421.000 |
20204.800 |
|
|
|
|
|
|
|
|
Import Value |
NA |
NA |
70832.940 |
|
|
|
|
|
|
|
|
Export Value |
NA |
NA |
3863.830 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Cost of Good Sold |
28523.000 |
18890.000 |
0.000 |
|
|
Salaries, Wages and Other Employee benefits |
74079.000 |
57645.000 |
0.000 |
|
|
Managerial Remuneration |
12.000 |
37.000 |
0.000 |
|
|
Interest |
1168.000 |
72.000 |
0.000 |
|
|
Depreciation |
4560.000 |
3598.000 |
0.000 |
|
|
Auditor’s Remuneration |
11.000 |
9.000 |
0.000 |
|
|
Provision for doubtful debts |
246.000 |
267.000 |
0.000 |
|
|
Manufacturing Expenses |
2998.000 |
1205.000 |
0.000 |
|
|
Raw Materials |
0.000 |
0.000 |
13506.900 |
|
|
Excise Duty |
0.000 |
0.000 |
369.700 |
|
|
Power & Fuel Cost |
0.000 |
0.000 |
864.600 |
|
|
Other Expenses |
25580.000 |
21767.000 |
8471.600 |
|
|
Employee Cost |
0.0000 |
0.000 |
42715.200 |
|
|
Selling and Administration Expenses |
5321.000 |
4274.000 |
9972.300 |
|
|
Miscellaneous Expenses |
0.000 |
0.000 |
2156.100 |
|
Total
Expenditure |
143498.000 |
107764.000 |
78056.400 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2008 1st
Quarter |
30.09.2008 2nd
Quarter |
|
Sales Turnover |
|
47046.000 |
54050.000 |
|
Other Income |
|
1028.000 |
1466.000 |
|
Total Income |
|
48074.000 |
55516.000 |
|
Total Expenditure |
|
39347.000 |
43223.000 |
|
Operating Profit |
|
8727.000 |
12293.000 |
|
Interest |
|
672.000 |
991.000 |
|
Gross Profit |
|
8055.000 |
11302.000 |
|
Depreciation |
|
1248.000 |
1311.000 |
|
Tax |
|
1347.000 |
1466.000 |
|
Reported PAT |
|
5460.000 |
8525.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Debt-Equity Ratio |
|
0.19 |
0.02 |
0.01 |
|
Long Term Debt-Equity Ratio |
|
0.19 |
0.02 |
0.00 |
|
Current Ratio |
|
2.16 |
1.58 |
1.46 |
|
TURNOVER RATIOS |
|
|
|
|
|
Fixed Assets |
|
8.99 |
6.86 |
4.97 |
|
Inventory |
|
51.29 |
70.73 |
74.37 |
|
Debtors |
|
5.67 |
6.05 |
6.12 |
|
Interest Cover Ratio |
|
30.71 |
442.14 |
748.50 |
|
Operating Profit Margin(%) |
|
22.89 |
25.75 |
25.67 |
|
Profit Before Interest And Tax Margin(%) |
|
20.31 |
23.14 |
22.83 |
|
Cash Profit Margin(%) |
|
19.93 |
23.27 |
22.53 |
|
Adjusted Net Profit Margin(%) |
|
17.35 |
20.66 |
19.68 |
|
Return On Capital Employed(%) |
|
28.71 |
39.73 |
41.01 |
|
Return On Net Worth(%) |
|
29.36 |
36.12 |
35.72 |
LOCAL AGENCY
FURTHER INFORMATION
History
Subject is one of the leading
players in providing IT services and 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 and 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 and Software
products, Consumer Electronics, Industrial Automation and Avionics, Medical Devices,
Mobile Devices and Application, semiconductors, Wireless Networks, Space
Communications and much more. The Company is the largest third party R AND 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 and 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 and
also achieved ISO 9000 certification. Wipro is the first software company to
get SEI Level 5 and 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, and 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.
Amalgamation
of Companies:
The Scheme of Amalgamation for merger of Wipro Infrastructure Engineering
Limited, Wipro Healthcare IT Limited, Quantech Global Services Limited
(subsidiary companies) with Wipro Limited was approved during the financial
year 2007-08 by the Honourable High Court of Karnataka and the Honourable High
Court of Andhra Pradesh.
The Scheme of Amalgamation for merger of mPact Technology Services Private
Limited, mPower Software Services (India) Private Limited and cMango India Private
Limited (step subsidiary companies) with Wipro Limited was approved during the
financial year 2007-08 by the Honourable High Court of Karnataka and the
Honourable High Court of Bombay.
Pursuant to filing of certified copies of orders of the High Court of
Karnataka, High Court of Bombay and High Court of Andhra Pradesh with the
respective Offices of the Registrar of Companies, the above direct and step
subsidiary companies of Wipro Limited are merged with Wipro Limited. The merger
comes into effect from the Appointed Date i.e. April 1, 2007. The Annual Report
of Wipro Limited for the year 2007-08 has been prepared after giving effect to
these amalgamations.
Subsidiary Companies:
The Company today is a global corporation having operations in more than 35
countries through more than 75 subsidiary companies, joint ventures and
associate companies. Section 212 of the Companies Act, 1956, requires that they
attach the Directors' Report, Balance Sheet and Profit and Loss Account of the
subsidiary companies. They believe that the Consolidated Financial Statements
present a more comprehensive picture rather than the standalone financial
statements of Wipro Limited and each of its subsidiaries. They, 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. In compliance with the terms of the exemption they have
presented in pages 85 through 87, summary financial information for each
subsidiary. Summary financial information includes Share Capital, Reserves and
Surplus, Total Assets, Total Liabilities, the holding in the subsidiary, Sales
and other income, profit before taxation, provision for taxation, profit after
taxation and proposed dividend. As permitted by SEBI guidelines and Companies
Act, 1956, they have included the abridged financial statements of Wipro
Limited in this annual report. The detailed financial statements and audit
reports of Wipro Limited and subsidiaries are available for inspection at the
registered office of the Company and upon written request from a shareholder,
they will arrange to deliver copies of the detailed financial statements.
Consolidated Results:
The Sales and other income for the current year grew by 34% to Rs. 203,970
million and the Profit for the year was Rs. 32,829 million, an increase of 12%
over the previous year. Over the last 10 years, the Sales have grown at a
Compounded Annual Growth Rate (CAGR) of 31% and Profit after Tax at 41%.
Acquisitions
and Joint Ventures:
They have continued to pursue the strategy of acquiring businesses which
complement the service offerings, provide access to niche skill sets and expand
the presence in select geographies. They have a dedicated team of professionals
who identify businesses which meet the strategic requirements and are cultural
fit to Wipro. The following businesses have joined the
Wipro family during the year:
1. Acquired 100% shareholding in Unza Holdings Limited ('Unza'), a
Singapore based Fast Moving Consumer Goods (FMCG) company together with its
subsidiaries for an all cash consideration of approximately USD 246 million.
This transaction establishes the presence in market for personal care products
in South East Asia. They have introduced some of these brands in India.
2. Acquired Infocrossing, Inc., a NASDAQ listed US-based provider of IT
infrastructure management, enterprise application and business process
outsourcing services, for an acquisition price of about USD 600 million in an
all cash deal. This acquisition created one of the world leaders in end-to-end
IT infrastructure management solutions.
3. They acquired OKI Techno Centre Singapore Pte. Limited (now called as
Wipro Techno Centre Singapore Pte. Limited) in an all cash deal of USD 2.5
million. This acquisition facilitated a strategic partnership in the area of
design services for the semiconductor market.
4. Wipro partnered with DAR Al-Riyadh Holding Co. Limited to form a joint
venture namely Wipro Arabia Limited. The purpose of this Joint Venture is to
provide software application development, implementation and maintenance
services, systems integration and data storage services in the Kingdom of Saudi
Arabia.
Wipro's R AND D Activities:
2007-08:
Wipro's R AND D focus has been to strengthen the portfolio of Centers of
Excellence (CoE) and Innovation projects. As part of this focus, over 600
people have been engaged across 60 CoEs and 40 Innovation projects. The R AND D
efforts have contributed revenues of USD 368 million which is approximately 11%
of the Global IT Services and Products revenue for the year.
At Wipro, they have institutionalised the spirit of Innovation through the
corporate Innovation initiative which began in 2000. They are now deriving
business value from these investments.
Apart from solutions that span across Process, Delivery, Business and
Technology domains, they added portfolio of quantum innovation projects in
financial year 2006-07 and in financial year 2007-08, they included talent
supply chain management into the innovation initiative.
Delivery
Innovation:
Innovations under this category include Software Factory model and Global
Command Centre (GCC) for standardised delivery of Application Development and
IT Infrastructure Management respectively.
Business Innovation:
Innovations under this category include solution frameworks and methodologies
to develop industry specific solutions. Examples in this portfolio are Sub
Daily Production Planning and Scheduling, Mobile Workforce Management, Warranty
Management, Business Analytics and Platform BPO.
Technology Innovation:
Innovations under this category include solutions with high Intellectual
Property (IP) component, which can be delivered as a service thus giving the
benefit of 'time to market' for the customers. Examples include IP components
for IEEE 1394, Wireless LAN (802.1 la/b/g and the upcoming 802.11n), Bluetooth,
Ultra Wide Band (UWB), Wireless USB, Analog/Mixed-Signal IP cores and DTV
middleware.
Centers
of Excellence (CoE):
The goal of a CoE is to create competencies in emerging areas of technologies
and industry and incubate new practices for business growth. They currently
manage 60 CoE's across different technologies and industry verticals. Some
examples of the CoE topics are SOA (Service Oriented Architecture),
Virtualisation, Unified Communication, SaaS (Software as a Service), Data
Privacy and Protection, IMS UP multimedia subsystem), Remote Patient
Monitoring, Image Processing, Supply Chain, Retail InStore, Retail Pharmacy,
Automotive, Open Source and Gaming.
MANAGEMENT'S
DISCUSSION AND ANALYSIS:
Management's Discussion and Analysis
of Financial Condition and Results of Operation:
I. Segment-wise performance:
Segment-wise contributions in
2007-08:
Segment-wise contribution to
Revenue:
Global IT Services and Products 68%India and Asia Pacific 19%Consumer Care
and Lighting 8%Others 5%
Segment-wise contribution to
EBIT:
Global IT Services and Products 54%India and Asia Pacific 9%Consumer Care
and Lighting 5%Others 2%
They began the operations in 1946 and were initially engaged in manufacture of
Hydrogenerated vegetable oil. They later diversified into consumer care
products. Today the Consumer Care and Lighting business with a CAGR (Compounded
Annual Growth Rate) of 30% (excluding acquisitions) is among the fastest
growing businesses in its segment. In 1975 they diversified into Hydraulics
engineering. Today they are among the largest third party manufacturers of
hydraulics cylinders globally. The results of this business are reported under
Others' Segment in the segment information.
They began the IT business in 1980 and today are a leading global information
technology services company. They provide a comprehensive range of IT services,
software solutions and research and development services in the areas of
hardware and software design to leading companies worldwide. They use the
development centers located in India and around the world, quality processes
and global resource pool to provide cost effective IT solutions and deliver
time-to-time and time-to development advantages to the clients. They also
provide business process outsourcing services.
In the subsequent sections of this report, they will report
for each of the business Segment separately, the industry structure and
developments, opportunities and threats, and risks and concerns.
Over the last six decades, they have emerged as a multi-business entity with
leadership position in every business they are in.
II. Industry Overview:
IT Services and Products:
The shift in the role of IT from merely supporting business to transforming
business, which is driving productivity gains and creating new business models,
has increased the importance of IT to the success of companies worldwide. The
ability to design, develop, implement, and maintain advanced technology
platforms and solutions to address business and customer needs has become a
competitive advantage and a priority for corporations worldwide.
According to the Worldwide Services Spending Forecast, a report published by
International Data Corporation, or IDC, in February 2008, total spend on IT
services in 2007 was estimated at USD 495 billion, a growth of 6% over last
year. Outsourcing was the fastest growth segment in 2007, estimated to have
grown by 7.4%. Looking ahead for 2008, Forrester Global IT 2008 Market Outlook predicts
that IT spends in US, the largest market for Indian IT firms, would slowdown
from 6.2% growth in 2007 to 2.8% growth in 2008. However, for a three year
period of 2007-10, IDC in a report estimates that worldwide IT services spends
would grow to USD 588 billion by 2010 reflecting a CAGR of 6%.
According to NASSCOM Strategic Review Report 2008 the offshore IT spending
during the period 2006-11 would grow at a CAGR of 17%. Further, according to
this report the IT and ITES exports of India in fiscal 2008 was USD 40 billion,
a growth of 29% over previous year. Key factors contributing to the growth of
India-based IT services are:
India-based IT companies have proven their ability to deliver IT services that
satisfy the requirements of international clients who expect the highest
quality standards. According to NASSCOM's Strategic Review Report 2007,
India-based centers (both Indian firms as well as MNC owned captives)
constitute the largest number of quality certifications achieved by any single
country. As of December 2007, over 480 Indian companies had acquired quality
certifications with 86 companies certified at SEI CMM level 5.
India has a large, highly skilled English-speaking labour pool that is
available at a relatively low labor cost. According to NASSCOM Strategic Review
Report 2008, the Indian IT industry employed nearly 1,996,000 software
professionals as of 2007-08, making it one of the largest employers in the
services industry. According to the same report, India has the largest pool of
suitable off-shore talent - accounting for 28% of the suitable pool available
across all offshore destinations.
With the time differential between India and its largest market, the United
States, Indian companies are able to provide a combination of onsite and
offshore services on a 24-hour basis on specific projects.
The Indian IT industry has been the primary beneficiary of the rapid
transformation of the telecom sector since it was deregulated to allow private
participation, with the cost of international connectivity declining rapidly
and service level quality improving significantly.
India based sourcing offers significant cost advantages in terms of accessing
highly skilled talent at lower wage costs and productivity gains that can be
derived from having a very competent employee base. According to NASSCOM's
Strategic Review 2007, the cost advantage achievable from outsourcing to India
is unlikely to go away due to an absolute cost advantage vis-a-vis other key
markets and the prospect of further reductions in infrastructure and overhead
costs.
Outlook:
During the financial year ending March 2008, they grew the Revenues by 34% to
Rs. 203,970 million and Profit After Tax (PAT) by 12% to Rs. 32,829 million.
Over the last decade, they have grown the Revenues at the CAGR of 31% and PAT
at the CAGR of 41%.
They have followed a practice of providing only revenue guidance for the
largest business segment, namely, Global IT Services and Products. The guidance
is provided at the release of every quarterly earnings when detailed Revenue
outlook for the succeeding quarter is shared. Over the years, the Company has
consistently exceeded its quarterly Revenue guidance.
Along with the Annual result announcement, on April 18, 2008, they provided the
most recent quarterly guidance. Revenue from the combined IT Services business
segment for the quarter ending June 30, 2008 is likely to be around $1,060
million.
On a more generic note, given the current economic and industry environment,
prospects in all the business segments look attractive and they look forward to
2008-09 and beyond with sustained excitement.
Fixed Assets :
Ø
Land
Ø
Buildings
Ø
Railway
siding
Ø
Plant
and Machinery
Ø
Furniture,
Fixture and Equipments
Ø
Vehicles
Ø
Technical
Know-how
Ø
Patents,
Trademarks and 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
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.
Brand:
Wipro Limited is a leading provider of IT solutions for customers across
Americas, Europe, Asia, Australia and the Middle East. Started as a ground nut
crushing unit in 1947, Wipro has grown into a multi business multi location
conglomerate. They have grown from a India centric consumer products
manufacturing company to a global company providing comprehensive service
portfolio, an adaptive, value-driven engagement model and the quality
leadership in every aspect of service delivery. The depth and width of the services
that they provide is perhaps unmatched by any other company.
In the non-IT businesses, they have a significant presence in Consumer Products
and in Infrastructure Engineering. They have a significant presence in
toiletries and lighting products and solutions. They are the preferred
suppliers to OEMs supplying to the growing infrastructure industry globally.
PRESS RELEASE
FOR IMMEDIATE
RELEASE
Results for the quarter ended September 30, 2008 under
Consolidated Indian GAAP
Wipro records 36% growth in Revenues
Revenue from IT Services at $1,110 Million, 29% YoY
Bangalore, October 22, 2008 –Wipro
Limited today announced its results approved by the Board of Directors
for the quarter ended September 30, 2008.
Highlights of the Results
· Wipro Limited Revenue increased by 36% Year on Year (YoY)
to Rs. 65.07 billion (Rs. 65070.000 Millions); Profit After Tax (PAT) grew by
19% YoY to Rs. 9.78 billion (Rs. 9780.000 Millions).
· IT Services Revenue in dollar terms was $1,110 million, a
sequential growth of 4.0% (5.6% in constant currency) and YoY growth of 29%. In
rupee terms, Revenue stood at Rs. 47.50 billion (Rs. 47500.000 Millions), a YoY
growth of 36%.
· Profit Before Interest and Tax (PBIT) for IT Services segment
was Rs. 9.96 billion (Rs.9960.000 Millions), a growth of 30% YoY.
· IT Services business added 28 new clients during the
quarter.
· IT Products business recorded a 50% YoY growth in Revenues
and 34% YoY growth in PBIT.
· Wipro Consumer Care and Lighting business Revenue grew 42%
YoY and PBIT grew 46% YoY.
Performance for quarter ended September 30, 2008 and Outlook
for quarter ending December 31, 2008
Azim Premji, Chairman of Wipro, commenting on the results
said –
“For the quarter ended September 2008, we delivered an
excellent performance with IT Services revenues at $1,110 million,
significantly ahead of our guidance of $1,089 million. Retail &
Transportation, Manufacturing & Healthcare and Financial Services
businesses led the growth with strong performances during the quarter. Our
differentiated Service lines of Technology Infrastructure Services, Testing
Services and Package Implementation continue to show good growth. Our
leadership in India & Middle East business was further re-emphasized with
another quarter of strong year on year growth. We won six multi-year
multimillion dollar deals during the quarter.
The global economic environment has deteriorated
significantly over the past couple of months, and our outlook is cautious in the
near term given the extent of strain on the global economy. However, we are
confident on the resilience of our business model to tide over these
challenging times. Looking ahead, for
the quarter ending December 31, 2008, we expect our Revenue
from our IT Services business to be approximately $1,121 million.”
Suresh Senapaty, Executive Director & Chief Financial
Officer of Wipro, said –
“The performance for the quarter is a strong reflection on
our ability to deliver operational efficiencies. Rate Realization and Fixed
Price Projects mix improved sequentially by 200 basis points and 100 basis
points respectively. Our continued emphasis on driving Utilization through an
integrated delivery model resulted in Utilization moving up by 240 basis
points. These strong gains on operational front helped us improve our margins
in the IT Services business in spite of effecting salary increases to our
offshore employees during the quarter.”
Wipro Limited
Revenues for the quarter ended September 30, 2008, were Rs. 65.07
billion, representing a 36% increase YoY. Profit after Tax for the quarter was
Rs. 9.78 billion, an increase of 19% YoY.
IT Services Segment
IT Services business reported Revenues of Rs. 47.50 billion
for the quarter ended September 30, 2008, representing an increase of 36% YoY
and PBIT of Rs. 9.96 billion, representing an increase of 30% YoY. Operating
Income to Revenue for the quarter was 21.0%. We had 97,552 employees as of
September 30, 2008, which includes 75,748 employees in our IT Services business
and 21,804 employees in our BPO business. IT Services business accounted for
73.0% of the Revenue and 90.0% of the PBIT for the quarter ended
September 30, 2008.
Key wins
Wipro entered into a large multi-million dollar deal with
one of the largest financial services group in the EMEA region to provide
Testing as Managed Services (TMS) ™. Wipro is managing end-to-end testing
ownership for the entire Testing Environment (Testing operations, Applications
and Infrastructure support) for the Retail Banking platform. Wipro’s competence
in the financial services testing domain was the key differentiator. Wipro
Technologies won a five year, multi–million dollar deal with a global consumer
apparel company headquartered in the United States. In this engagement, Wipro
will manage application development and support for application portfolio
spanning areas such as supply chain, go-to-market, collaboration, distribution
and warehouse management, retail and legacy systems. Wipro’s focus on business
transformation, with a risk mitigated solution was the key differentiator.
Wipro also entered into a multi-year strategic engagement
with a major French Telecom company. Wipro will leverage its core competence in
the areas of Application Development and Maintenance, superior quality
processes and delivery innovation in this engagement. This is a testimony to
Wipro's growing importance in the French market.
In a landmark co-innovation partnership with Harman
International, Wipro launched a joint embedded engineering center in India. The
new Harman India Development Center will operate from Wipro’s existing
Bangalore and Chennai facilities, complementing an earlier agreement which
outsourced Harman’s global IT infrastructure services to Wipro.
Wipro entered into an engagement with a German electrical
systems company for an ERP rollout project which will integrate their global
operations bringing in significant system standardization and process
integration business benefits.
Wipro has been chosen for a multi-year engagement by a large
UK based Water and Waste-water service utility to provide managed hosting
services. In the India geography, a large contact centre upgrade and managed
services contract was won for a leading Telecom Services provider. This 5 year
multi-million dollar outsourcing contract will see Wipro providing highest
system availability to several million subscribers. Another key win was the
implementation of an Integrated Risk Management System (IRMS) at Vijaya Bank, a
project that relates to integration of multiple risk solutions. IRMS will help
the bank assess the risk involved while lending and informs the bank on
re-pricing the loan, among many other solutions.
Green IT
This quarter Wipro strengthened its suite of Green IT offerings
which includes Consulting, Green Data Centers,
Carbon Accounting, Paperless Office and Freight Management
solutions. The green suite of offerings saw traction both in terms of deals as
well as industry recognition. Wipro embarked on a first of its kind initiative
for a leading Telecom Service provider in India which involves construction of
a completely “green” National Data Center for the company’s nationwide IT and
Telecom requirements. The project will not only ensure visible environmental benefits
but will also bring potentially huge cost savings in terms of power, water and
lighting ensuring natural resources are optimized to the maximum. The scope of
the project includes futuristic design, supply, installation, commissioning and
operations for Data Center and NOC.
Wipro Technologies and a leading Retail organization in the
US recently collaborated to win Oracle’s 'Empower the Green Enterprise' award
for Implementation of Oracle I-Expenses module with integration to Peoplesoft
payroll. Wipro helped the client organization move their legacy travel expense
system to Oracle I-expenses platform and significantly reduced the consumption
of paper, making the process more eco-friendly.
As Enterprises world-wide are beginning to consciously
reduce their contribution to Global Warming by reducing emissions of Green
House Gases, Wipro has introduced a Carbon Accounting Tool, that will help
enterprises to measure, manage, monitor and monetize their carbon di-oxide
emissions resulting from their operations globally.
Awards and Recognition
Wipro has been recognized as a winner of the Asian MAKE
Awards, 2008. Wipro was ranked first in the ‘Transforming enterprise knowledge
into shareholder value’. Wipro was also ranked high in the ‘Developing
knowledge workers through senior management’ and in the ‘Managing customer
knowledge’ categories. This is the sixth time in a row that Wipro has been
recognized as an Asian MAKE winner.
Wipro received
‘strong positive’ rating in leading Analyst firm, Gartner of its “Market Scope
for Business Intelligence and Performance Management Services, Western Europe,
2008”.1
Wipro has been quoted as a specialized consulting partner in
application delivery for clients seeking cross enterprise food supply chain
tracking by leading independent research firm AMR2.
IT Products Segment
For the quarter ended September 30, 2008, IT Products
business recorded Revenues of Rs.10.02 billion, representing a growth of 50%
YoY. PBIT grew by 34% YoY to Rs. 429 million. Operating Income to Revenue for
the quarter was 4.3%.
IT Products business accounted for 15.4% of the
Revenue and 3.9% of the PBIT for the quarter ended September 30, 2008.
Consumer Care & Lighting Segment
For the quarter ended September 30, 2008, our Consumer Care
and Lighting business recorded Revenues of Rs. 5.27 billion, a growth of 42%
YoY and PBIT of Rs. 643 million, a growth of 46% YoY. PBIT to Revenue was 12.2%
for the quarter.
Consumer Care & Lighting business accounted for 8.1% of
the Revenue and 5.8% of the PBIT for the quarter
ended September 30, 2008.
Wipro Limited
For the quarter ended September 30, 2008, the Return on
Capital Employed in IT Services and Products business was 44% and Consumer Care
& Lighting business was 14%. At the Company level, the Return on Capital
Employed was 25%, lower due to inclusion of cash and cash equivalents of Rs.
52.6 billion in Capital Employed (29% of Capital Employed).
In the current global environment of liquidity challenges,
cash provides excellent flexibility to pursue strategic initiatives and
business opportunities. With that objective, the Board has decided not to
declare interim dividend. For Wipro Limited, Profit after Tax computed in
accordance with US GAAP for the quarter ended September 30, 2008, was Rs. 8.2
billion. The net difference between Profits computed in accordance with Indian
GAAP and US GAAP is primarily due to different Revenue recognition standards,
income taxes, amortization of intangible assets, differences in accounting
treatment for hedge accounting for foreign currency loan and related currency
swaps and India fringe benefit tax.
For Wipro Limited, Non-US GAAP adjusted Profit after Tax for
the quarter ended September 30, 2008, was Rs. 9.5 billion. The net difference
between Profits computed in accordance with Indian GAAP and Non-US GAAP
adjusted is primarily due to different Revenue recognition standards, income
taxes, and amortization of intangible assets.
IT Services segment’s Revenues were Rs. 47.3 billion for the
quarter ended September 30, 2008, under US GAAP. The difference of Rs. 165
million is primarily attributable to difference in accounting standards under
Indian GAAP and US GAAP.
Quarterly Conference call
We will hold conference calls today at 11:45 a.m. Indian
Standard Time (2:15 a.m. US Eastern Time) and at 6:45 p.m. Indian Standard Time
(9:15 a.m. US Eastern Time) to discuss our performance for the quarter and
answer questions sent to email ID: rajendra.shreemal@wipro.com. An audio recording of the management
discussions and the question and answer session will be available online and
will be accessible in the Investor Relations section of our 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 IT Services business was 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 ADS 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. For more information, please visit our websites at
www.wipro.com, www.wiprocorporate.com and www.wipro.in
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, revenue and profits, our
ability to generate and manage growth, intense competition in IT services, our
ability to maintain our cost advantage, wage increases in India,
our ability to attract and retain highly skilled
professionals, time and cost overruns on fixed-price, 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 business and industry. Additional risks that could
affect our future operating results are more fully described in our filings
with the United States Securities 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.
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.49.46 |
|
UK Pound |
1 |
Rs.73.17 |
|
Euro |
1 |
Rs.62.96 |
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 |
|