MIRA
INFORM REPORT
|
Report Date : |
28.02.2011 |
NOTE – WIPRO BPO SERVICES DIVISION OF WIPRO LIMITED
IDENTIFICATION DETAILS
|
Name : |
WIPRO LIMITED WIPRO BPO SERVICES DIVISION OF WIPRO LIMITED |
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Registered
Office : |
Doddakannelli, |
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Country : |
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|
|
Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
29.12.1945 |
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|
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|
Com. Reg. No.: |
08-20800 |
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CIN No.: [Company Identification
No.] |
L99999KA1945PLC020800 |
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|
TAN No 1 .: [Tax Deduction &
Collection Account No.] |
BLRW00327F |
|
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|
|
TAN No 2 .: [Tax Deduction &
Collection Account No.] |
BLRW00024D |
|
|
|
|
TAN No 3 .: [Tax Deduction &
Collection Account No.] |
BLRW00392A |
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|
TAN No 4 .: [Tax Deduction &
Collection Account No.] |
BLRW00368E |
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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
: |
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 (81) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
Maximum Credit Limit : |
USD 700000000 |
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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 fine track. Financial position of the company appears
to be sound. Trade relations are reported as fair. Business is active.
Payments are reported to be regular and as per commitments. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered/
Corporate Office : |
Doddakannelli, |
|
Tel. No.: |
91-80-28440011 |
|
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 ·
|
|
|
|
|
Factory : |
> > S B Towers, 88, M > 608-610, > > 271-27 1 A, Sri Ganesh Complex, > 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
and Development), > No. 1 , 2, 3, 4 and 54/3, Survey No.- 201/C, Madivala IV,
Bangalore – 560 068, Karnataka, India > 3rd Floor, > Subramanya Arcade, > K-3 1 2, Koramangala Industrial Layout, > V Block, Koramangala, > > > No.92, 2nd > S. No. 70/1, 2, 3, 4(P) and. 84/1, 2, 3, Hobli, ' > Capitale, 552 and. 555, Anna Salai, Teynampet, Chennai, > 475A, Shollinganallur, > 111, Mount Road, Guindy, Chennai - 600 032, > 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, > No. 480-481, Udyog Vihar, Phase-Ill, Gurgoan - 122015, > S. No. 203/1, District, > Survey Nos. 64, Serilingampali Mandal, Madhapur, 033, > > Plot No. 1, 7, 8 and 9, Block-DM, Sector- V, Saltlake, Kolkata -
700 091, West > 146/147, Mettagalli Industrial Area, Mettagalli, > Vashi, Navi Mumbai, Mumbai, > Plot No. 2, MIDC, > 1-8-448, |
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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.:
91-408-249 6345 Fax No.: 91-408-
6157174 / 6157178 15455 N. W., 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, Tel. No.: 91-972-
6716130 Fax No.: 91-972-
6716134 2432, W. Tel. No.: 91-602-
8705780 Extn.: 101 100, W. 22nd
Street, Tel. No.: 91-630-
8899860 Fax No.: 91-630
-8899187 8901, Tel. No.:
91-952-9489683 Fax No.: 91-952-
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 |
|
|
|
|
Branches : |
Wipro
Infotech Software and Service
88,
|
DIRECTORS
AS ON 27.09.2010
|
Name : |
Mr. Azim Hashmi
Premji |
|
Designation : |
Chairman |
|
Date of
Appointment : |
01.09.1968 |
|
|
|
|
Name : |
Dr. Ashok Ganguly |
|
Designation : |
Chairman, ICICI OneSource Limited. Former
Chairman, ICI India Limited |
|
Date of
Appointment : |
01.01.1999 |
|
|
|
|
Name : |
Mr. B. C.
Prabhakar |
|
Designation : |
Practitioner of Law |
|
Date of
Appointment : |
20.02.1997 |
|
|
|
|
Name : |
Mr. Vivek Paul |
|
Designation : |
Vice Chairman and Executive Officer |
|
Date of
Appointment : |
26/07/1999 |
|
|
|
|
Name : |
Mr. Narayan
Vaghul |
|
Designation : |
Chairman, ICICI Bonk Limited |
|
Date of
Appointment : |
09.06.1997 |
|
|
|
|
Name : |
Professor Eisuke
Sakakibara |
|
Designation : |
Professor of Economics, Keio
Universityjapan |
|
Date of
Appointment : |
01/01/2002 |
|
|
|
|
Name : |
Mr. P. M. Sinha |
|
Designation : |
Former Chairman, PepsiCo |
|
Date of
Appointment : |
01.01.2002 |
|
|
|
|
Name : |
Dr. Jagdish N Sheth |
|
Designation : |
Professor of Marketing, |
|
Date of
Appointment : |
01.01.1999 |
|
|
|
|
Name : |
Mr. Suresh C Senapaty |
|
Designation : |
Chief Financial Officer and Director |
|
|
|
|
Name : |
Mr. Girish S Parnjpe |
|
Designation : |
Joint CEO, IT Business and Director |
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|
|
|
Name : |
Mr. Suresh Vaswani |
|
Designation : |
Joint CEO, IT Business and Director |
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KEY EXECUTIVES
|
Name : |
Mr. V. Ramachadran |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2010
|
|
NO. OF SHARES
|
PERCENTAGE (%)
|
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
95,679,432 |
3.97 |
|
|
11406331 |
0.47 |
|
|
1838868000 |
76.23 |
|
|
1625868000 |
67.40 |
|
Any Other |
213000000 |
8.83 |
|
|
1945953763 |
80.66 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
1945953763 |
80.66 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
17245325 |
0.71 |
|
|
44487456 |
1.84 |
|
|
25674257 |
1.06 |
|
|
133322742 |
5.53 |
|
|
220729780 |
9.15 |
|
|
|
|
|
|
71117219 |
2.95 |
|
|
|
|
|
|
52581251 |
2.18 |
|
|
81702260 |
3.39 |
|
|
40324718 |
1.67 |
|
|
23137265 |
0.96 |
|
|
15018744 |
0.62 |
|
|
318694 |
0.01 |
|
|
1796661 |
0.07 |
|
|
53354 |
-- |
|
|
245725448 |
10.19 |
|
Total Public shareholding (B) |
466455228 |
19.34 |
|
Total (A)+(B) |
2412408991 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
41236490 |
-- |
|
Total (A)+(B)+(C) |
2453645481 |
-- |
(1) Indian
Individuals / Hindu Undivided Family
Partnership Firms
BUSINESS DETAILS
|
Line of
Business : |
Software exports,
software and 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 : |
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PRODUCTION STATUS
As on 31.03.2009
|
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 : |
|
|
|
|
|
Customers : |
·
3COM ·
ABN Amro ·
Alcatel ·
·
Analog Devices ·
Aristasoft ·
AT and T ·
Baxter ·
BSI ·
BT ·
Cisco ·
Compaq ·
ContentGuard ·
Corel ·
Cox and Kings ·
Daiwa ·
Energy.com ·
Epson ·
Ericsson ·
Esupportnow.com ·
Farmers insurance ·
Franklin Templeton ·
Fujitsu ·
General Motors ·
Genuity ·
Geoutilities.com ·
Home Depot ·
HP ·
IBM ·
·
JP Morgan ·
KPN ·
Lucent ·
Magneti Marelli ·
Marconi ·
Menlo Logistics ·
Microsoft ·
Mitsubishi ·
VLSI ·
Weyerhaeuser · Winterthus |
|
|
|
|
No. of
Employees : |
14000 |
|
|
|
|
Bankers : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
N. M. Raiji and
Company Chartered
Accountants |
|
|
|
|
Subsidiaries : |
|
CAPITAL STRUCTURE
As on 31.03.2009
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 |
|
|
|
|
|
|
1464980746 |
Equity Shares |
Rs.2/- each |
Rs.
2930.000 Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
2936.000 |
2930.000 |
2923.000 |
|
|
2] Share Application Money |
18.000 |
15.000 |
40.000 |
|
|
3] Share Issuable |
0.000 |
0.000 |
540.000 |
|
|
4] Reserves & Surplus |
173968.000 |
122204.000 |
112604.000 |
|
|
5] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
176922.000 |
125149.000 |
116107.000 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
40.000 |
|
|
2] Unsecured Loans |
55302.000 |
50139.000 |
38184.000 |
|
|
TOTAL BORROWING |
55302.000 |
50139.000 |
38224.000 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
232224.000 |
175288.000 |
154331.000 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
36563.000 |
31796.000 |
22822.000 |
|
|
Capital work-in-progress |
9911.000 |
13118.000 |
13350.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
89665.000 |
68845.000 |
45001.000 |
|
|
DEFERREX TAX ASSETS |
348.000 |
577.000 |
517.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
6069.000
|
4597.000
|
4481.000
|
|
|
Sundry Debtors |
47547.000
|
42992.000
|
36466.000
|
|
|
Cash & Bank Balances |
56643.000
|
44092.000
|
37321.000
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
54846.000
|
43502.000
|
41796.000
|
|
Total
Current Assets |
165105.000
|
135183.000
|
120064.000 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
57164.000
|
33616.000
|
|
|
Current Liabilities |
|
|
|
|
|
Provisions |
22308.000
|
17067.000
|
13807.000
|
|
Total
Current Liabilities |
69368.000
|
74231.000
|
47423.000
|
|
|
Net Current Assets |
95737.000
|
60952.000
|
72641.000
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
232224.000 |
175288.000 |
154331.000 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
229220.000 |
215073.000 |
174926.000 |
|
|
|
Other Income |
8753.000 |
(4804.000) |
3269.000 |
|
|
|
TOTAL (A) |
237973.000 |
210269.000 |
178195.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
|
|
33767.000 |
28523.000 |
|
|
|
Salaries, Wages and Other Employee benefits |
|
92422.000 |
74079.000 |
|
|
|
Managerial Remuneration |
|
76.000 |
12.000 |
|
|
|
Depreciation |
|
5337.000 |
4560.000 |
|
|
|
Auditor’s Remuneration |
180001.000 |
13.000 |
11.000 |
|
|
|
Provision for doubtful debts |
|
791.000 |
246.000 |
|
|
|
Manufacturing Expenses |
|
2606.000 |
2998.000 |
|
|
|
Other Expenses |
|
32288.000 |
25580.000 |
|
|
|
Selling and Administration Expenses |
|
5522.000 |
5321.000 |
|
|
|
TOTAL (B) |
180001.000 |
172822.000 |
141330.000 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
57972.000 |
37447.000 |
35865.000 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST (D) |
1084.000 |
1968.000 |
1168.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
56888.000 |
35479.000 |
34697.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
7908.000 |
5741.000 |
4064.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
48980.000 |
29738.000 |
30633.000 |
|
|
|
|
|
|
|
|
|
Less: |
EXTRAORDINARY
ITEMS |
262.600 |
NA |
NA |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
48717.400 |
NA |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
-- |
20.24 |
21.11 |
|
|
|
Diluted |
-- |
20.38 |
21.01 |
|
QUARTERLY RESULTS
(UNAUDITED)
|
PARTICULARS |
30.06.2010 (Rs. In
Millions) |
30.09.2010 (Rs. In
Millions) |
31.12.2010 (Rs. In
Millions) |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
59822.000 |
65569.000 |
66234.000 |
|
Total Expenditure |
45915.000 |
51940.000 |
51479.000 |
|
PBIDT (Excl OI) |
13907.000 |
13629.000 |
14755.000 |
|
Other Income |
1288.000 |
1368.000 |
1642.000 |
|
Operating Profit |
15195.000 |
14997.000 |
16397.000 |
|
Interest |
755.000 |
(16.000) |
307.000 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
14440.000 |
15013.000 |
16090.000 |
|
Depreciation |
1361.000 |
1394.000 |
1541.000 |
|
Profit Before Tax |
13079.000 |
13619.000 |
14549.000 |
|
Tax |
1979.000 |
1898.000 |
2312.000 |
|
Provisions and Contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
11100.000 |
11721.000 |
12237.000 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustment |
0.000 |
0.000 |
0.000 |
|
Net Profit |
11100.000 |
11721.000 |
12237.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
20.58 |
14.14 |
2.53 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
24.82 |
16.50 |
0.41 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
28.21 |
20.71 |
17.19 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.32 |
0.28 |
19.84 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.38 |
0.99 |
10.27 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
1.82 |
1.19 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Subject, the successful company crossed six decade of years.
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 Fast Moving Consumer Goods and IT services and Products
business. It was incorporated at Karnataka by Mr. Azim H Premji who is promoter
and chairman of the company. Five of Wipro's manufacturing and development
facilities secured the Indian Standard Organization (ISO) 9001 certification
during 1994-95. Company provides the integrated business, technology and
process solution on a global delivery platform to customers across
GLOBAL AND
INDUSTRY OUTLOOK:
According to NASSCOM
Strategic Review Report
2010, IDC forecasts
a cumulative annual growth rate (CAGR) of over 4.08% in worldwide IT
services and IT enabled services (IT-ITeS) spending and a
CAGR of over 6.18%
in offshore IT spending,
for the period 2008-13. The combined market
for Indian IT-ITeS in
fiscal 2010 was nearly $
63 billion. Key
factors supporting this projection
are the growing impact
of technology led innovation, the
increasing demand for
global sourcing and
gradually evolving socio-political attitudes.
IDC forecasts worldwide IT services spending of approximately $695 billion by
2013, reflecting a compound annual growth rate, or
CAGR, of 3.3%. However, Forrester US and Global IT Market Outlook Q4
2009, predicts that U.S. IT market will
grow by 6.6% in 2010 following a drop of 8.2% in 2009. Companies are increasingly turning to
offshore technology service providers in
order to meet their need for high quality, cost competitive technology solutions. Technology companies
have been outsourcing software research and development and related support functions to offshore technology
service providers to reduce cycle time for introducing new products and
services.
SUBSIDIARY
COMPANIES:
Subject is a global corporation
having operations in more than 35
countries through 80 subsidiary
companies, a few 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 an exemption from the requirement to present
detailed financial
statements of each
subsidiary. The Ministry
of Corporate Affairs, Government of
The detailed financial
statements and audit reports
of 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 financial statements of subsidiary companies to the
said shareholder.
ISSUE OF BONUS
EQUITY SHARES/AMERICAN DEPOSITORY SHARES:
The Board of Directors has approved issue of Bonus Shares in the
ratio of two equity shares for every
three existing equity shares outstanding as
on the record date and two American Depositary Shares for every three
existing American Depository Shares outstanding as on the record date.
Issue of Bonus Shares
has also been approved by the shareholders of
the Company through Postal
Ballot on June 4, 2010. Subsequent to this approval,
the record date to determine the eligible shareholders
who are
entitled to receive the Bonus
Shares fixed as June 16, 2010.
ACQUISITIONS AND
JOINT VENTURES:
The Company has continued to pursue the strategy of 'string
of pearls acquisitions' by
acquiring businesses which
complement the service offerings, provide access to niche skill sets and expand
the presence in select geographies. The Company has a
dedicated team of professionals who identify businesses which meet the
strategic requirements and are cultural
fit to Wipro.
In August 2009,
the Company had entered into
partnership with Lavasa Corporation Limited for planning,
implementing and managing Information and Communication Technology services across
In October 2009, the Company
signed an agreement to form a joint
venture with
In October 2009, Wipro GE Healthcare Private Limited,
the Joint Venture between Wipro
Limited and GE Healthcare, transformed
its business by integrating several existing stand-alone business units
and manufacturing plants of GE
Healthcare in
In November 2009,
the Company had signed an agreement
to acquire the 'Yardley'
Brand business in Asia, Middle East,
All the subsidiaries
of the Company are unlisted and none
of them are material unlisted subsidiaries as per
Clause 49 of the Listing Agreement.
INVESTMENTS IN
DIRECT SUBSIDIARIES:
During the year ,
the Company has made
acquisitions and investments of an
aggregate of US$ 171 Million as equity
in its direct subsidiaries Wipro
Cyprus Private Limited, Wipro Inc
and Wipro Yardley Consumer Care Private Limited.
The Company has also invested Rs. 37 Million as equity in Wipro Airport
IT Services Limited, a
newly formed joint
venture company with
CORPORATE
GOVERNANCE and CORPORATE SOCIAL RESPONSIBILITY:
The Company believes Corporate
Governance is at the core of stakeholder satisfaction. The Company's
governance practices are described
separately of this Annual
Report. The Company has obtained
a certification from Sreedharan and Associates, Company
Secretaries on the compliance with
Clause 49 of the Listing
Agreement with Indian Stock Exchanges. This
certificate is given in this Annual Report.
With a view
to strengthening the
Corporate Governance framework,
the Ministry of Corporate Affairs
has incorporated certain provisions
in the Companies Bill, 2009. The Ministry of Corporate Affairs
has also issued a
set of Voluntary Guidelines on
Corporate Governance and Corporate Social Responsibility in
December 2009 for
adoption by the
companies. The Guidelines broadly
outline conditions for appointment of directors, guiding
principles to remunerate directors, responsibilities of
the Board, Risk Management, rotation of audit partners,
audit firms, conduct of secretarial audit
and other Corporate Governance and Corporate Social
Responsibility related
disclosures. The Company has by and large complied with
various requirements and is in
the process of initiating appropriate
action, for the other applicable
requirements.
Corporate Governance is also related to Innovation and Strategy
as the organisation's ideas
of Innovation and strategies are driven
to enhance stakeholder
satisfaction for all stakeholders.
PERSONNEL:
The particulars of
employees as required by
Section 217 (2A) of the Companies
Act, 1956, read with the
Companies (Particulars of
Employee) Rules, 1975, have been provided as an additional booklet
WIPRO EMPLOYEE
STOCK OPTION PLANS/RESTRICTED STOCK UNIT PLANS:
Information relating to stock options program of the Company is provided
in page 7 of this report. The information is being provided in compliance with
Clause 12 of the Securities and Exchange Board of
MANAGEMENT'S
DISCUSSION AND ANALYSIS:
I. Segment-wise
performance:
Segment-wise
contributions in 2009-10:
Segment-wise
contribution to Revenue:
- IT Services :
75%
- IT Products :
14%
- Consumer Care
and Lighting and Others: 11%
Segment-wise
contribution to EBIT:
- IT Services :
92%
- IT Products :
3%
- Consumer Care
and Lighting and Others : 5%
They are a leading global
information technology, or IT,
services company,
headquartered in
The IT Products segment is a leader in the Indian IT
market and focuses primarily on meeting requirements for
IT products of companies in
They also have a notable presence
in the markets for consumer
products and lighting and
infrastructure engineering.
In the subsequent section of this
report, they will report for each
of the business segment
separately, the industry structure
and developments, opportunities and
threats, and risk and concerns.
II. INDUSTRY
OVERVIEW:
IT Services:
The shift in the
role of Information and Technology (IT)
from merely supporting business
to transforming business, is driving productivity gains and helping create new
business models. This has led to an increase in
the
importance of IT. The increasing acceptance of outsourcing and off-shoring of activities
as an economic necessity has contributed to the
continued growth in the revenue.
As corporate and businesses adjust to 'new
normal' post the recent
global recession, they will need
to transform their business models
to the changed
economic and business
environment. Consequently, they
will have to make significant investments in
IT. This
opens up opportunities for them to offer the consulting, Systems Integration services and
leverage the Global Delivery
footprint and thus help
the customers in their transformation journey.
These opportunities are also
reflected in the forecasts of market
growth. IDC forecasts worldwide IT services spending of approximately
$695 billion by 2013,
reflecting a compounded annual
growth rate or CAGR
of 3.3%. However, Forrester US
and Global IT Market Outlook Q4 2009 , predicts
that U.S. IT market will grow by 6.6% in 2010 following a drop of 8.2%
in 2009. Similarly, according to NASSCOM
Strategic Review Report 2010, the worldwide BPO market is expected to touch $
148 billion by 2013, representing a CAGR, of 6.11%. Key factors supporting this
projection are the growing impact of
technology led innovation, the
increasing demand for global
sourcing and gradually evolving
socio-political attitudes. Global
Delivery led organizations are
expected to get an increased share of the IT
services spends due to the powerful combination of scale, quality and
cost embedded in their business model. In
IT PRODUCTS:
According to NASSCOM
Strategic Review Report 2010,
IDC forecasts that worldwide hardware spending will
increase from $600 billion in 2008 to $680 billion in 2013, representing a CAGR
of 2.53%.
According to NASSCOM Strategic
Review Report 2010, the hardware market
in
CONSUMER CARE AND
LIGHTING:
The consumer care
market includes personal
care products, soaps, toiletries, infant care products,
modular switch lights and modular office
furniture. They have a strong brand presence in a niche segment
and have significant market share
in select regions in
AC Nielsen estimates that
of 8% - 10% for the period 2010-2013. The household and personal
care FMCG market in the other Asian
countries in which they operate including
The Indian domestic market for
institutional lighting and office modular furniture is estimated at U.S. $ 600
million and is expected to grow at the rate
of 10% to 15% for the period 2010-2011. Key sectors contributing
to
the growth are
expected to be modern
work spaces, IT-ITeS,
Retail, Healthcare and Government Infrastructure spending.
They expect to
increase the market share
organically in the
identified geographies. In addition
they continue to look at acquiring
established brands which complement the brand presence and distribution
strengths.
Others:
In the other segment, Wipro Infrastructure
Engineering (WIN) is the key business
segment. They sell hydraulic
cylinders and truck tipping systems that
are used in variety of earth
moving, material handling, mining and construction equipments.
III.
IT Services:
Global companies are increasingly
turning to offshore technology service providers in order to meet their need for high
quality, cost competitive technology solutions. Technology companies have been
outsourcing software
research and development
and related support
functions to offshore technology service
providers to reduce cycle
time for
introducing new products and
services.
According to NASSCOM Strategic Review Report 2009, IDC forecasts a
CAGR of over 6.18% in offshore IT
spending, for the period 2008-13.
As a de-risking
strategy, companies have moved from
giving mega large orders
to breaking up of deals to get better
price advantage. This
has opened up opportunities for Indian IT companies to
participate in these large
multi-million dollar deals.
Global companies are expanding
their outsourcing activities to
leverage the high quality, cost
competitive IT services from
They believe the strong brand,
robust quality process and access to
skilled talent base at lower costs places them in a unique position to
take advantage of the trend towards outsourcing IT services.
They believe that the global delivery model allows them to provide
services on a best
shore basis. Customers benefit
from round the
clock execution schedules, quality control measures and best in class
resources pooled in across geographies
for high quality delivery and risk management
practices to ensure uninterrupted services.
OUTLOOK:
During the financial year ending March 2010, they grew the Revenues by
6% to Rs. 271,414
million and Profit After Tax (PAT) by 19%
to Rs. 46,310 million. Over the last decade, they have grown the
Revenues at the CAGR of 28% and PAT at the CAGR of 31%.
They have followed a practice of providing only
revenue guidance for
the largest business segment, namely, IT Services. 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 performed in line
with quarterly Revenue guidance.
On April 23, 2010, along with the earnings release for quarter
ended March 31, 2010, they provided the most recent quarterly
guidance. Revenue from IT Services segment
for the quarter ending June 30,
2010 is likely to be
ranged between USD 1,161-1,183 million on a constant currency basis.
FIXED ASSETS:
- Land
- Buildings
- Railway
siding
- Plant and
Machinery
- Furniture,
Fixture and Equipments
- Vehicles
- Technical
Know-how
- Patents,
Trademarks and Rights
AS PER WEBSITE
Profile:
Subject is the first PCMM Level 5 and SEI CMM Level 5 certified IT
Services Company globally. Subject 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
Subject’s ADSs are listed on the New York Stock Exchange, and its equity shares
are listed in
AUDITED FINANCIAL STATEMENTS FOR THE QUARTER
ENDED DECEMBER 31, 2010
(Rs. In Millions)
|
Particulars |
30.06.2010 (Audited) |
31.12.2010 (Audited) |
|
1. Net Income from Sales/ Services |
58822.000 |
78293.000 |
|
2. Cost of |
|
|
|
a) Increase/
Decrease in Stock in trade and work in progress |
[217.000] |
(192.000) |
|
b) Consumption of
raw materials |
2371.000 |
3496.000 |
|
c) Purchase of
traded goods |
6649.000 |
8480.000 |
|
d) Other
Expenditure |
30125.000 |
39883.000 |
|
3. Gross Profit (1-2) |
20894.000 |
26626.000 |
|
4. General and Administrative
Expenses |
3119.000 |
4861.000 |
|
5. Selling and
Distributions Expenses |
3868.000 |
5330.000 |
|
6. Depreciation |
1361.000 |
2078.000 |
|
7. Operating Profit before Interest (3) –
(4+5+6) |
12546.000 |
14357.000 |
|
8. Interest
Expenses |
755.000 |
427.000 |
|
9. Exceptional
Items |
-- |
-- |
|
10. Operating Profit After Interest and
Exceptional Items ( 7-8-9) |
11791.000 |
13930.000 |
|
11. Other
Investment Income |
1288.000 |
1751.000 |
|
12. Profit from ordinary Activities before
tax ( 10+11) |
13079.000 |
15681.000 |
|
13. Tax Expenses
(including fringe benefit Tax) |
1979.000 |
2582.000 |
|
14. Net Profit form ordinary
Activities after tax (12-13) |
11100.000 |
13099.000 |
|
15. Minority
Interest |
-- |
(71.000) |
|
16. Share in Earnings
of Associates |
- |
160.000 |
|
17. Net Profit for the period (
14+15+16-17) |
11100.000 |
13188.000 |
|
18. Paid up
equity share capital (Face value Rs. 2
per share) |
4899.000 |
4907.000 |
|
19. Reserve excluding
Revaluation Reserve (as per balance sheet) of previous accounting year |
-- |
224242.000 |
|
19. Earnings per shared (EPS) |
|
|
|
Before
Extraordinary items (not annualized) |
|
|
|
Basic (In Rs.) |
4.56 |
5.41 |
|
Diluted ( In Rs.) |
4.56 |
5.39 |
|
After
Extraordinary items (not annualized) |
|
|
|
Basic ( In Rs.) |
4.56 |
5.41 |
|
Diluted ( In Rs.) |
4.56 |
5.39 |
|
20. Public Shareholding * |
|
|
|
Number of Shares |
462854067 |
466455228 |
|
Percentage of
holdings |
18.90% |
19.01% |
|
21. Promoters and promoter group
shareholding |
|
|
|
a) Pledged /
Encumbered |
|
|
|
- Number of
Shares |
Nil |
Nil |
|
- Percentage of
Share (as a % of the total shareholding of Promoter and promoter group) |
Nil |
Nil |
|
- Percentage of Share
(as a % of the total share capital of
the company) |
Nil |
Nil |
|
|
|
|
|
b) Non-
Encumbered |
|
|
|
- Number of
Shares |
1945953763** |
1945953763 |
|
- Percentage of
Share (as a % of the total shareholding of Promoter and promoter group) |
100% |
100% |
|
- Percentage of
Share (as a % of the total share capital
of the company) |
79.45% |
79.31% |
|
|
|
|
|
Details of
Expenditure |
|
|
|
Items exceeding
10% of total expenditure |
|
|
|
Employee Cost |
25358.000 |
31788.000 |
STATUS OF REDRESSAL OF
COMPLAINTS RECEIVED FOR THE PERIOD APRIL 1, 2010 TO JUNE 30, 2010
|
Nature of the Complaint |
Nature |
Opening Balance 01.04.2010 |
Complaints received during
the quarter |
Complaints disposed during the
quarter |
Unresolved |
|
1. Non- Receipt
of Securities |
Complaints |
-- |
22 |
22 |
-- |
|
2. Non Receipt of
Annual Reports |
Complaints |
-- |
7 |
7 |
-- |
|
3. Correction/
Duplicate/ revalidation of dividend warrents |
Request |
-- |
57 |
57 |
-- |
|
4. SEBI/ Stock
Exchange complaints |
Complaints |
-- |
2 |
2 |
-- |
|
5. Non Receipt of
Dividend Warrents |
Complaints |
-- |
52 |
52 |
-- |
|
6. Other |
Request |
|
-- |
-- |
-- |
|
TOTAL |
|
-- |
140 |
140 |
-- |
There are certain pending
cases relating to disputes over title to shares in which the company has been
made a party. However these cases are not material in nature.
Notes:
1. The above audited
interim financial results were approved by the Board of Directors of the Company
at its meeting held on July 23, 2010.
2, The audited
interim financial results have been prepared from the audited condensed interim
financial statements for the quarter ended June 30, 2010. The financial
statements are prepared in accordance with Indian Generally Accepted Accounting
Principles (GAAP) under the historical cost convention on the accrual basis,
except for certain financial instruments which are measured on a fair value
basis. GAAP comprises Accounting Standards specified in the Companies (Accounting
Standards) Rules, 2006, Accounting Standards issued by the Institute of
Chartered Accountants of India (ICAI) and other generally accepted accounting
principles in
The condensed
interim financial statements have been prepared in accordance with the
recognition, measurement and disclosure provisions of AS 2.5, Interim Financial
Reporting issued pursuant to the Companies (Accounting Standards) Rules, 2006
and by the ICAI. The accounting policies followed in preparation of the
condensed interim financial statements are consistent with those followed in
the preparation of the annual financial statements as of and for the year ended
March 31, 2010. Further, there has been no change in the accounting policies
during the quarter ended June 30, 2010.
3. The total
revenues represent the aggregate revenue and includes all allocable other
income and exchange differences, except exchange difference on foreign currency
borrowing, which are reported under other income in the condensed interim financial
statements. The exchange difference on foreign currency borrowing is included
in interest expense above.
4. The Company has
adopted AS 30, Financial Instruments — Recognition and Measurement and the
limited revisions to other accounting standards which come into effect upon
adoption of AS 30.
AS 30 states that
particular sections of other accounting standards; AS 4, Contingencies and
Events Occurring after Balance sheet date, to the extent it deals with
contingencies, AS 1 l(revised 2003), The Effects of Changes in Foreign Exchange
Rates, to the extent it deals with the ‘forward exchange contracts’ and AS 13
Accounting for Investments, except to the extent it relates to accounting for
investment properties, would stand withdrawn only from the date AS-30 becomes
mandatory (April 1, 2011 for the Company).
Accordingly, the
Company continues to comply with the guidance under these accounting standards;
AS 4- relating to Contingencies, AS 11- relating to Forward Contracts and AS
13- relating to Investments until AS 30 becomes mandatory.
The Company has
designated USD 262 Million (June 30, 2009: USD 267 Million, March 31, 2010: USD
262 Million) and Euro 40 Million (June 30, 2009: Euro 40 Million, March 31,
2010: Euro 40 Million) of derivative contracts as hedges of its net investments
in non integral foreign operations. The Company has also designated a
yen-denominated foreign currency borrowing amounting to JPY 18 Billion (June
30, 2009: JPY 27 Billion, March 31, 2010: JPY 18 Billion), along with a floating
for floating Cross-Currency Interest Rate Swap (CCIRS), as a hedging instrument
to hedge its net investment in a non-integral foreign operation. Further, the
Company has also designated yen-denominated foreign currency borrowing
amounting to JPY 8 Billion (June 30, 2009: JPY 8 billion, March 31, 2010: JPY 8
billion) along with floating for fixed CCIRS as cash flow hedge of the yen-
denominated borrowing and also as a hedge of net investment in a non-integral
foreign operation. As equity investments in non integral foreign
subsidiaries/operations are stated at historical cost, in the standalone
condensed interim financial statements, the changes in fair value of forward
contracts, the yen- denominated foreign currency borrowing and the related
CCIRS amounting to gain! (loss) of Rs. (509) Million for the quarter ended June
30, 2010 has been recorded in the profit and loss account (quarter ended June
30, 2009: Rs 1,649, March 31, 2010: Rs 4,378 Million.)
Derivatives
As of June 30, 2010
the Company has recognised losses of Rs.6,477 Million (June 30, 2009: Rs.
13,354 Million, March 31, 2010: Rs. 5,099 Million) relating to derivative
financial instruments that are designated as effective cash flow hedges in the
shareholders’ fund.
The following table
presents the aggregate contracted principal amounts of the Company’s derivative
contracts outstanding as at:
|
Particulars |
30.06.2010 Rs in Millions |
|
Designed
derivative instruments |
|
|
Sell |
$1, 395 |
|
|
₤28 |
|
|
Ą4,190 |
|
|
CHF 6 |
|
|
|
|
Buy |
-- |
|
Non Designed
Derivatives Instruments |
|
|
Cross Currency
swaps |
Ą33,014 |
|
Sell |
$292 |
|
|
₤57 |
|
|
AUD4 |
|
|
€ 79 |
|
Buy |
$390 |
|
|
-- |
5. Employees covered under Stock Option Plans and Restricted Stock Unit (RSU)
Option Plans are granted an option to purchase shares of the Company at the
respective exercise prices, subject to requirements of vesting conditions.
These options generally vest over a period of five years from the date of
grant. Upon vesting, the employees can acquire one equity share for every
option. The maximum contractual term for aforementioned stock option plans is generally 10 years.
The stock compensation cost is computed under the intrinsic value method
and amortised on a straight line basis over the total vesting period of five
years. The Company has not granted any options under RSU Options Plan during
the quarter ended June 30, 2010 (June 30, 2009: 5000 options, and March 31,
2010: 142,100 options). For the quarter ended June 30, 2010, the Company has
recorded stock compensation expense of Rs 246 Million (quarter ended June 30,
2009: Rs 362 Million and March 31, 2009: Rs. 1,224 Million).
6. In May 2010, the Government of India has amended the Payment of
Gratuity Act, 1972 to increase the limit of gratuity payment from Rs.0.35
Million to Rs. 1 Million. Consequently, during the three months ended June 30,
2010, the Company has recognized Rs.223 Million of vested past service cost in
the profit and loss account.
7. Earnings per share for the period, and number of shares outstanding
as at, June 30, 2010, and corresponding previous period June 30, 2009 and year
ended March 31, 2010, have been adjusted for bonus share issue. The Company has
issued 2 bonus shares for every 3 shares held, during the quarter ended June
30, 2010, which was approved by the shareholders in their meeting held on June
4, 2010.
8. Segment information has been disclosed in the Consolidated financial
results for the quarter ended June 30, 2010.
9. Corresponding figures for previous periods presented have been
regrouped, where necessary, to conform to the current period classification.
Press Release:
WIPRO 31% YOY
GROWTH IN PROFIT AFTER TAX IN Q1 FY11
Highlights of the
Results:
Results for the
Quarter ended June 30, 2010
·
IT Services Revenue on a Non-GAAP constant currency
was $1,218 million, with a sequential increase of 4.4%. On a YoY basis, the
increase in IT Services Revenue on a Non-GAAP constant currency basis was16.6%.
·
Total Revenues were Rs. 72.36 billion ($1.56 billion1),
representing an increase of 16% over the same period last year.
·
IT Services Revenue in dollar terms was $1,204
million, a sequential increase of 3.2% and Yo increase of 16.6%.
·
Net Income was Rs. 13.19 billion ($284 million1),
representing an increase of 31% over the same period last year.
·
Non-GAAP Adjusted Net Income (excluding impact of
accelerated amortization of stock based compensation) was Rs. 13.06 billion
($281 million1), representing an increase of 30% over the same period last
year.
·
IT Services Revenues were Rs. 55.00 billion ($1,185
million1), representing an increase of 14% over the same period last year.
·
IT Services Earnings Before Interest and Tax (EBIT)
was Rs.13.5 billion ($291 million1), representing n increase of 26% over the
same period last year.
·
IT Services added 22 new clients in the quarter.
·
Net addition of 4,854 employees in the current
quarter.
·
IT Products recorded a 13% growth in Revenues over
the same period last year.
·
Consumer Care and Lighting Revenue grew 23% over
the same period last year and EBIT grew 11%
Performance for
the quarter ended June 30, 2010 and Outlook for the quarter ending September
30, 2010
Azim Premji
Chairman of Wipro, commenting on the results said –
“We are seeing strong demand environment across the industry verticals
despite macro challenges. We added the highest number of billable employees
ever, in this quarter. Our guidance reflects this omentum – for the quarter
ended September 30, 2010, we expect revenues from our IT Services business to
be in the range of $1,253 million to $1,277 million, a sequential increase of
4.1% to 6.1%*”
Suresh Senapaty,
Executive Director and Chief Financial Officer of Wipro, said –
“We delivered ahead of the top end of our guidance in constant currency
with a sequential growth of 4.4% and saw yet another quarter of margin
expansion with a 30 basis points increase despite the head winds of wage
increase and a decline in price realization. We have also given Restricted Stock
Units and progressions effective July 1, 2010.”
* Guidance is based on the following constant currency exchange rates:
GBP/USD at 1.48, Euro/USD at 1.27,
AUD/USD at 0.87, USD/INR at 45.68
WIPRO LIMITED
Total Revenue for the quarter ended June 30, 2010 was Rs. 72.36 billion
($1.56 billion1), representing an increase of 16% over the same period last
year. Net Income for the quarter ended June 30, 2010 was Rs.13.19 billion ($284
million1), representing an increase of 31% over the same period last year. Non-
GAAP Adjusted Net Income (excluding impact of accelerated amortization of stock
based compensation) for the quarter ended June 30, 2010 was Rs. 13.06 billion
($281 million1), representing an increase of 30% over the same period last
year. Earnings Per Share for the quarter ended June 30, 2010 were Rs. 5.42
($0.121). Non-GAAP Adjusted Earnings Per Share (excluding the impact of
accelerated amortization of stock based compensation) for the quarter ended
June 30, 2010 were Rs. 5.37 ($0.121), representing an increase of 29% over the
same period last year.
Please see the table on page 8 for a reconciliation between (i) IFRS Net
Income and non-GAAP Adjusted Net Income (excluding the impact of stock-based
compensation) and (ii) IFRS IT Services Revenue and IT Services Revenue on a
non-GAAP constant currency basis. IT Services (76% of Total Revenue and 93% of
Operating Income for the quarter ended June 30,2010)
Our IT Services business segment recorded Revenue of Rs. 55.00 billion
($1,185 million1) for the quarter ended June 30, 2010, representing an increase
of 14% over the same period last year. EBIT for this segment was Rs. 13.50
billion ($291 million1) for the quarter ended June 30, 2010, representing an
increase of 26% over the same period last year.
Our Operating Income to Revenue for this segment was 24.5% for the
quarter ended June 30, 2010. We had 112,925 employees as of June 30, 2010, an
increase of 4,854 people this quarter.
Wipro’s capability to be a transformational partner to our clients
coupled with global domain expertise helped them secure several large deals
this quarter.
During the quarter Wipro Technologies and Citibank signed an agreement
for Wipro to take over the ownership and management of Citibank’s data center
in Meerbusch
Wipro has signed a multi-year Transformation deal with Magyar Telekom
(MT), a subsidiary of Deutsche Telekom and the largest Telecom Service Provider
in
We also signed a multi-year deal with one of the largest oil and gas
companies to provide managed services across the global functions application
landscape. This includes applications across HR, Finance, IT, Corporate, Legal,
Corporate Services, Real Estate, and Health Services functions.
The
Wipro launched two productized services in support of implementations of
SAP® applications: an enterprise information management (EIM) service for
customers in the oil and gas and process industries and a customer care and billing
service for customers in the utilities industry. The best-practices based
services are aimed at helping customers implement SAP applications faster,
leading to reduced time to value and total cost of ownership. The services were
showcased at the SAPPHIRE® NOW conference 2010.
In line with the Wipro’s globalization strategy and building on the
company's rapid expansion plans in
Awards and
Recognition
This quarter, Wipro’s Identity Access Management (IAM) Solution
IDAM-in-a-Rack was recognized by two organizations. The Global Product
Excellence Award 2010 identified the solution under the ‘Identity Management
Solution’ Category. The solution was also honored with the ‘Best Innovation
Award in Identity Access Management Category’ by the analyst group Kuppinge
Cole at the European Identity Conference 2010 recently in
Subject was named as the 2009 ‘Partner in Progress’ by Leading Retailer
Sears Holdings Corporation. This award is presented annually to a select group
of supplier companies that provide Sears Holdings with quality products and
services, from apparel, appliances and tools to marketing, facilities design and
technology. Less than one percent of Sears Holdings’ over 30,000 suppliers earn
the coveted award each year. Subject received the award for demonstrating the
highest level of commitment, quality and innovation in technology. Subject also
won the Technology Solution Excellence award at Cisco Partner Summit at
Subject was also honored with two SAP® Pinnacle Awards in the categories
“IT Outsourcing Partner of the Year” and “Run SAP Partner of the Year”. SAP
Pinnacle Awards are granted to leading SAP partners that have excelled in
enhancing the customer experience, addressing critical issues such as
accelerating co innovation and improving return on investment.
Subject attained the ‘Platinum’ Partner Status, which is the top tier,
in the EMC Global Alliance program. With this enhanced status Wipro will
continue to offer more innovative service offerings and best-in-class solutions
around EMC’s industry leading information infrastructure technology to help customers
achieve critical IT efficiencies.
IT Products (11% of Total Revenue and 2% of Operating Income for the
quarter ended June 30,2010)
The IT Products segment recorded Revenue of Rs. 8.32 billion ($179
million1) for the quarter ended June30, 2010, representing an increase of 13%
over the same period last year. EBIT for this segment was Rs.337 million ($7.3
million1) for the quarter ended June 30, 2010.
The ratio of Operating Income to Revenue for this segment was 4.0% for
the quarter ended June 30, 2010.
Return on Average Capital Employed (ROCE) for our IT Services and
Products segment was 42% on anannualized basis for the quarter ended June 30,
2010
Consumer Care and
Lighting (9% of Total Revenue and 6% of Operating Income for thequarter ended
June 30, 2010)
The Consumer Care and Lighting business segment recorded Revenue of Rs.
6.41 billion ($138 million1) for the quarter ended June 30, 2010, representing
an increase of 23% over the same period last year. EBIT for this segment was
Rs. 879 million ($19 million1) for the quarter ended June 30, 2010,
representing an increase of 11% over the same period last year.
The Operating Income to Revenue for this segment was 13.7% for the
quarter ended June 30, 2010. ROCE for this segment was 17% on an annualized
basis for the quarter ended June 30, 2010, compared to 17% for the same period
last year.
About Non-GAAP
financial measures
This press release contains non-GAAP financial measures within the meaning
of Regulation G and Item 10(e) of Regulation S-K. Such non-GAAP financial
measures are measures of our historical or future performance, financial
position or cash flows that are adjusted to exclude or include amounts that are
excluded or included, as the case may be, from the most directly comparable
financial measure calculated and presented in accordance with IFRS.
The table on page 8 provides our Adjusted Net Income for the period,
which is a non-GAAP measure that excludes the impact of accelerated
amortization in respect of stock options that vest in a graded manner, and our
IT Services Revenue on a constant currency basis, which is a non-GAAP measure
that is calculated by translating IT Services Revenue from the current
reporting period into U.S. dollars based on the currency conversion rate in
effect for the prior reporting period.
These Non-GAAP financial measure are not based on any comprehensive set
of accounting rules or principles and should not be considered a substitute
for, or superior to, the most directly comparable financial measure calculated
in accordance with IFRS, and may be different from non-GAAP measures used by
other companies. In addition to these non-GAAP measure, the financial
statements prepared in accordance with IFRS and the reconciliation of these
non-GAAP financial measures with the most directly comparable IFRS financial
measure should be carefully evaluated.
We believe that the presentation of this Non-GAAP Adjusted Net Income,
when shown in conjunction with the corresponding IFRS measure, provides useful
information to investors and management regarding financial and business trends
relating to its Net Income for the period. We consider a stock option award
with a graded vesting schedule to be in substance a single award not multiple
stock option awards. Further, we consider the services of the employee in each
year covered by the stock option award to be equally valuable and accordingly
believes that the straight line amortization reflects the economic substance of
the stock option awards. However, we record the related stock compensation
expenses on an accelerated amortization basis for IFRS reporting. Therefore, we
believe that making available an adjusted net income number that excludes the
impact of accelerated amortization from Net Income provides useful supplemental
information to both management and investors about our financial and business
trends.
For our internal budgeting process, our management also uses financial
statements that exclude the impact of accelerated amortization relating to
stock options that vest in a graded manner. Our management of the Company also
uses Non-GAAP Adjusted Net Income, in addition to the corresponding IFRS
measure, in reviewing our financial results.
A material limitation associated with the use of Non-GAAP Adjusted Net
Income as compared to the IFRS measure of Net Income is that it does not
include costs which are recurring in nature and may not be comparable with the
calculation of Net Income for other companies in our industry. We compensate
for these limitations by providing full disclosure of the effects of this
non-GAAP measure, by presenting the corresponding IFRS financial measure and by
providing a reconciliation to the corresponding IFRS measure.
We believe that the presentation of IT Services Revenue on a non-GAAP
constant currency basis, when shown in conjunction with the corresponding IFRS
measure, provides useful information to investors and management regarding
financial and business trends relating to our IT Services Revenue. As noted
above, IT Services Revenue on a non-GAAP constant currency basis is calculated
by translating IT Services Revenue from the current reporting period into U.S.
dollars based on the currency conversion rate in effect for the prior period.
We refer to growth rates in constant currency so that business results may be
viewed without the impact of fluctuations in foreign currency exchange rates,
thereby facilitating period-to-period comparisons of our business performance.
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.
Wipro also has a strong presence in niche market segments of
Infrastructure Engineering and Consumer Products and Lighting.
Forward-looking
and Cautionary Statements
In addition to historical information, this press release contains
certain “forward-looking statements” within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended. The forward-looking statements contained herein
represent Wipro’s beliefs regarding future events, many of which are, by their
nature, inherently uncertain and outside Wipro’s control. Such statements
include, but are not limited to, statements regarding Wipro’s growth prospects,
its future financial operating results, and its plans, expectations and
intentions.
Wipro cautions readers that the forward-looking statements contained
herein are subject to risks and uncertainties that could cause actual results
to differ materially from the results anticipated by such statements. Such
risks and uncertainties include, but are not limited to, risks and
uncertainties regarding fluctuations in the earnings, revenue and profits, the
ability to generate and manage growth, intense competition in IT services, the
ability to maintain the cost advantage, wage increases in India, the ability to
attract and retain highly skilled professionals, time and cost overruns on
fixed-price, fixed-time frame contracts, client concentration, restrictions on
immigration, the ability to manage the international operations, reduced demand
for technology in the key focus areas, disruptions in telecommunication
networks, the ability to successfully complete and integrate potential
acquisitions, liability for damages on the 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 the
intellectual property, and general economic conditions
affecting the business and industry. Additional risks that could affect
the future operating results are more fully described in the filings with the
United States Securities and Exchange Commission, including, but not limited
to, Annual Reports on Form 20-F. These filings are available at www.sec.gov.
They 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 the reports to shareholders. They do not
undertake to update any forward-looking statement that may be made from time to
time by us or on the behalf.
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.45.37 |
|
|
1 |
Rs.73.24 |
|
Euro |
1 |
Rs.62.68 |
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 |
NO |
|
--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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.