1. Summary Information
|
|
|
Country |
|
|
Company Name |
WIPRO LIMITED WIPRO CONSUMER CARE AND LIGHTING (DIVISION OF WIPRO LIMITED) |
Principal Name 1 |
Mr. Azim Hashmi
Premji |
|
Status |
Good |
Principal Name 2 |
Dr. Ashok Ganguly |
|
|
|
Registration # |
08-20800 |
|
Street Address |
Doddakannelli, Sarjapur Road, Bangalore – 560 035,
Karnataka, India |
||
|
Established Date |
29.12.1945 |
SIC Code |
-- |
|
Telephone# |
91-80-28440011 |
Business Style 1 |
E-business transformation |
|
Fax # |
91-80-28440054 |
Business Style 2 |
web enabling |
|
Homepage |
Product Name 1 |
--- |
|
|
# of employees |
14000 Approximately |
Product Name 2 |
--- |
|
Paid up capital |
1464980746 |
Product Name 3 |
--- |
|
Shareholders |
-- |
Banking |
--- |
|
Public Limited Corp. |
-- |
Business Period |
66 years |
|
IPO |
--- |
International Ins. |
- |
|
Public |
--- |
Rating |
Aa
(81) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
|
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
159,036,000,000 |
Current Liabilities |
69,368,000,000 |
|
Inventories |
6,069,000,000 |
Long-term Liabilities |
55,302,000,000
|
|
Fixed Assets |
36,563,000,000 |
Other Liabilities |
---- |
|
Deferred Assets |
348,000,000 |
Total Liabilities |
124,670,000,000 |
|
Invest& other Assets |
99,576,000,000 |
Retained Earnings |
173,968,000,000 |
|
|
|
Net Worth |
176,922,000,000 |
|
Total Assets |
301,592,000,000 |
Total Liab. & Equity |
301,592,000,000 |
|
Total Assets (Previous Year) |
249,519,000,000 |
|
|
|
P/L Statement as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Sales |
237,973,000,000 |
Net Profit |
48,980,000,000 |
|
Sales(Previous yr) |
210,269,000,000 |
Net Profit(Prev.yr) |
29,738,000,000 |
MIRA
INFORM REPORT
|
Report Date : |
16.03.2011 |
IDENTIFICATION DETAILS
|
Name : |
WIPRO LIMITED WIPRO CONSUMER CARE AND LIGHTING (DIVISION OF WIPRO LIMITED) |
|
|
|
|
Registered
Office : |
Doddakannelli, Sarjapur Road, Bangalore – 560
035, Karnataka |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2010 |
|
|
|
|
Date of
Incorporation : |
29.12.1945 |
|
|
|
|
Com. Reg. No.: |
08-20800 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 2930.000 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L32102KA1945PLC020800 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BLRW00415C |
|
|
|
|
Legal Form : |
Public Limited Liability Company.
The company’s shares are listed on the Stock Exchanges. |
|
|
|
|
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. |
|
|
|
|
No. of
Employees: |
14000 (Approximately) |
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 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
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, Sarjapur Road, Bangalore – 560 035, Karnataka, India |
|
Tel. No.: |
91-80-28440011 |
|
Fax No.: |
91-80-28440054 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
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, 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 > > > 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,
Manikonda Jagir Village, Rajendranagar Mandal, RR District, Hyderabad, India > Survey Nos.
64, Serilingampali Mandal, Madhapur, Hyderabad - 500 033, India > > 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, |
|
|
|
|
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, Suite 200, Santa Clara, CA
95050, USA 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. Peoria Avenue, Suite 1323, Phoenix, AZ
85029, USA 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, W Peoria Ave, Suite 1323, Phoenix, Arizona,
USA AZ 85029 Room no. 1064, Hatanpaankatu 1 (Kulma-Sarvis), Tampere,
Finland Web Campus,
Kaistrasse, 101 |
|
|
|
|
Branches : |
Wipro
Infotech Software and Service
88,
|
DIRECTORS
AS ON 31.03.2010
|
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 |
|
|
|
|
Name : |
Mr. Suresh Vaswani |
|
Designation : |
Joint CEO, IT Business and Director |
|
|
|
KEY EXECUTIVES
|
Name : |
Mr. V. Ramachadran |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2011
Particulars
|
NO. OF SHARES
|
PERCENTAGE (%)
|
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
95,679,432 |
3.97 |
|
|
11,406,331 |
0.47 |
|
|
|
|
|
|
|
|
|
|
1,625,868,000 |
67.40 |
|
Any Other |
213,00,000 |
8.83 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
25,617,143 |
1.04 |
|
|
39,657,843 |
1.64 |
|
|
25,674,257 |
1.06 |
|
|
132,161,254 |
5.48 |
|
|
|
|
|
|
|
|
|
|
71,399,485 |
2.96 |
|
|
|
|
|
|
|
|
|
|
51,802,009 |
2.15 |
|
|
51,832,533 |
3.39 |
|
|
|
|
|
|
|
|
|
|
23,121,962 |
0.94 |
|
|
15,000,739 |
0.61 |
|
|
156,094 |
0.01 |
|
|
681,896 |
0.03 |
|
|
53,482 |
--- |
|
|
|
|
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
41,296,685 |
--- |
|
|
|
|
|
Total |
2,454,409,145 |
100.00 |
(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. |
||||||||
|
|
|
||||||||
|
Products : |
|
||||||||
|
|
|
||||||||
|
Exports to : |
|
||||||||
|
|
|
||||||||
|
Imports from : |
|
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 ·
Morgan Stanley ·
NCR ·
NEC ·
Newbridge ·
Nike ·
Nortel ·
Npower ·
NTL ·
OTIS ·
PacifiCorp ·
Pepco Energy Services ·
Pindar ·
Seagate ·
Sharp ·
Skandia ·
Sonera ·
Sony ·
Spice ·
Sun ·
Sunquest ·
Telstra ·
·
·
Thomas Cook ·
Trafalgar ·
Transco ·
Tufts Healthplan ·
TIBCO ·
United Technologies ·
US Wireless ·
VLSI ·
Weyerhaeuser · Winterthus |
|
|
|
|
No. of
Employees : |
14000
(Approximately) |
|
|
|
|
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
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
59822.000 |
65569.000 |
66234.000 |
71784.000 |
|
Total Expenditure |
45915.000 |
51940.000 |
51479.000 |
56067.000 |
|
PBIDT (Excl OI) |
13907.000 |
13629.000 |
14755.000 |
15717.000 |
|
Other Income |
1288.000 |
1368.000 |
1642.000 |
2107.000 |
|
Operating Profit |
15195.000 |
14997.000 |
16397.000 |
17824.000 |
|
Interest |
755.000 |
[16.000] |
307.000 |
314.000 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.0000.000 |
|
PBDT |
14440.000 |
15013.000 |
16090.00 |
17510.000 |
|
Depreciation |
1361.000 |
1394.000 |
1541.000 |
1706.000 |
|
Profit Before Tax |
13079.000 |
13619.000 |
14549.000 |
15804.000 |
|
Tax |
1979.000 |
1898.000 |
2312.000 |
2428.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
0Profit After Tax |
11100.000 |
11721.000 |
12237.000 |
13376.000 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
11100.000 |
11721.000 |
12237.000 |
13376.000 |
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.
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.
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
FOREIGN EXCHANGE
EARNINGS AND OUTGOINGS:
During the year, the Company has
earned foreign exchange of Rs. 168,469 million and
the outgoings in foreign exchange were
Rs. 71,739 million, including outgoings on materials
imported and dividend.
RESEARCH AND
DEVELOPMENT:
Requirement under Rule 2 of Companies (Disclosure of
Particulars in the Report
of Board of Directors) Rules, 1988, regarding Technical Absorption and Research and Development in Form B is given
in the Annual Report, to the extent applicable.
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. 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
Subject’s ADSs are listed on the New York Stock Exchange, and its equity shares
are listed in
AUDITED CONDENSED CONSOLIDATED INTERIM
STATEMENT OF FINANCIAL POSITION
(Rs. In Millions)
|
Particulars
|
30.09.2010 |
30.09.2010 Convenience translation into US $ in
Millions (Unaudited) |
|
ASSETS |
|
|
|
Goodwill |
54,660 |
1,227 |
|
Intangible Assets |
3,784 |
85 |
|
Property, Plant and Equipments |
55,235 |
1,240 |
|
Investment in Equity accounted investees |
2,694 |
60 |
|
Derivative assets |
2,873 |
64 |
|
Non-current tax assets |
3,465 |
78 |
|
Deferred tax assets |
1,640 |
37 |
|
Other non-current assets |
13,233 |
297 |
|
Total
non-current assets |
137,584 |
3,088 |
|
Inventories |
8,391 |
188 |
|
Trade Receivables |
58,221 |
1,307 |
|
Other Current Assets |
23,398 |
525 |
|
Unbilled revenues |
22,082 |
496 |
|
Available for sale investments |
51,273 |
1,151 |
|
Current tax assets |
7,174 |
161 |
|
Derivative assets |
1,373 |
31 |
|
Cash and Cash equivalents |
37,844 |
849 |
|
Total
current assets |
209,756 |
4,707 |
|
Total
Assets |
347,340 |
7,795 |
|
Equity |
|
|
|
Share Capital |
4,904 |
110 |
|
Share Premium |
20,064 |
652 |
|
Retained Earning |
181,752 |
4,079 |
|
Share based payment reserve |
1,753 |
39 |
|
Other components of equity |
[2,224] |
[50] |
|
Shares held by controiled trust |
[542] |
[12] |
|
Equity attributable to the equity holders
of the company |
214,707 |
4,818 |
|
Non-controlling Interest |
649 |
15 |
|
Total
Equity |
215,356 |
4,833 |
|
Liabilities |
|
|
|
Long-term loans and borrowings |
24,932 |
560 |
|
Deferred tax liabilities |
340 |
8 |
|
Derivative liabilities |
3,041 |
68 |
|
Non-current tax liability |
2,963 |
66 |
|
Other
non-current liabilities |
3,188 |
72 |
|
Provisions |
141 |
3 |
|
Total
non-current liabilities |
34,605 |
777 |
|
Loans and borrowings and bank overdrafts |
30,693 |
689 |
|
Trade payables and accrued expenses |
43,882 |
985 |
|
Unearned revenue |
8,071 |
181 |
|
Current tax liabilities |
5,560 |
125 |
|
Derivative liabilities |
1,079 |
24 |
|
Other Current liabilities |
5,802 |
130 |
|
Provisions |
2,292 |
51 |
|
Total
Current Liabilities |
97,379 |
2,185 |
|
Total
Liabilities |
131,984 |
2,962 |
|
Total
Equity and Liabilities |
347, 340 |
7,795 |
AUDITED CONDENSED CONSOLIDATED INTERIM
STATEMENT OF INCOME
(Rs. In Millions)
|
Particulars
|
30.09.2010 |
30.09.2010 Convenience translation into US $ in
Millions (Unaudited) |
|
Gross Revenue |
149,625 |
3,358 |
|
Cost of Revenues |
[101,917] |
[2,287] |
|
Gross Profit |
47,708 |
1,071 |
|
Selling and marketing expenses |
[11,137] |
[290] |
|
General and administrative expenses |
[8,090] |
[182] |
|
Foreign exchange gains/ loss net |
45 |
1 |
|
Results
from operating activities |
28,526 |
640 |
|
Finance expenses |
[870] |
[20] |
|
Finance and other income |
2,773 |
62 |
|
Share of profit of equity accounted
associates |
349 |
8 |
|
Profit
before tax |
30,778 |
691 |
|
Income tax expenses |
[4.528] |
[102] |
|
Profit
for the period |
26,250 |
589 |
|
Atributable
to: |
|
|
|
Equity holders of the company |
26,035 |
584 |
|
Non-controlling interest |
215 |
5 |
|
Profit
for the period |
26,250 |
589 |
|
Earning
per Equity Shares |
|
|
|
Basic |
10.69 |
0.24 |
|
Diluted |
10.66 |
0.24 |
|
Weighted average number of equity shares
used in the computing EPS |
|
|
|
Earning per share |
|
|
|
Basic |
2,434,528,098 |
2,434,528,098 |
|
Diluted |
2,442,200,976 |
2,442,200,976 |
|
|
|
|
|
Additional
Information |
|
|
|
Segment Revenue |
|
|
|
IT Services |
112,473 |
2,524 |
|
IT Products |
19,013 |
427 |
|
IT Services and Products |
131,486 |
2,951 |
|
Consumer Care and Lighting |
13,064 |
293 |
|
Others |
5,119 |
115 |
|
Total |
149,670 |
3,359 |
|
Operating
Income |
|
|
|
IT Services |
26,318 |
591 |
|
IT Products |
869 |
20 |
|
IT Services and Products |
27,187 |
640 |
|
Consumer Care and Lighting |
1,725 |
29 |
|
Others |
[387] |
[6] |
|
Total |
208,525 |
640 |
|
Reconsiliation of adjusted Non-GAAP profit
to profit as per IFRS |
|
|
|
Profit for the period attributable to
Equity holders of The company |
26,035 |
584 |
|
Adjustments |
|
|
|
Accelarated amortization of stocks options
that vest in a graded manner |
[211] |
[5] |
|
Non-GAAP
adjusted profit |
25,824 |
580 |
|
Reconsiliation
of Non- GAAP Constant Currency IT Services Revenue to IT Services Revenue as
per IFRS (SMN) |
||
|
IT Services Revenue as per IFRS |
1,273 |
|
|
Effect of Foreign currency exchange
movements |
12 |
|
|
Non- GAAP constant Currency IT Services Revenue
Based on previous quarter exchange rates |
1,261 |
|
|
IT Services Revenue as per IFRS |
1,273 |
|
|
Effect of Foreign currency exchange
movement |
[9] |
|
|
Non-GAAP constant Currency IT Services
Revenue based on previous year exchange rates |
1,281 |
|
AUDITED FINANCIAL STATEMENTS FOR THE QUARTER
ENDED JUNE 30, 2010
(Rs. In Millions)
|
Particulars |
30.06.2010 (Audited) |
|
1. Net Income from Sales/ Services |
58822.000 |
|
2. Cost of |
|
|
a) Increase/
Decrease in Stock in trade and work in progress |
[217.000] |
|
b) Consumption of
raw materials |
2371.000 |
|
c) Purchase of
traded goods |
6649.000 |
|
d) Other
Expenditure |
30125.000 |
|
3. Gross Profit (1-2) |
20894.000 |
|
4. General and
Administrative Expenses |
3119.000 |
|
5. Selling and
Distributions Expenses |
3868.000 |
|
6. Depreciation |
1361.000 |
|
7. Operating Profit before Interest (3) –
(4+5+6) |
12546.000 |
|
8. Interest
Expenses |
755.000 |
|
9. Exceptional
Items |
-- |
|
10. Operating Profit After Interest and
Exceptional Items ( 7-8-9) |
11791.000 |
|
11. Other
Investment Income |
1288.000 |
|
12. Profit from ordinary Activities before
tax ( 10+11) |
13079.000 |
|
13. Tax Expenses
(including fringe benefit Tax) |
1979.000 |
|
14. Net Profit form ordinary
Activities after tax (12-13) |
11100.000 |
|
15. Extraordinary
Items (net of tax expenses) |
-- |
|
16. Net Profit for the period ( 14-15) |
11100.000 |
|
17. Paid up
equity share capital (Face value Rs. 2
per share) |
4899.000 |
|
18. Reserve
excluding Revaluation Reserve (as per balance sheet) of previous
accounting year |
-- |
|
19. Earnings per shared (EPS) |
|
|
Before
Extraordinary items (not annualized) |
|
|
Basic (In Rs.) |
4.56 |
|
Diluted ( In Rs.) |
4.56 |
|
After
Extraordinary items (not annualized) |
|
|
Basic ( In Rs.) |
4.56 |
|
Diluted ( In Rs.) |
4.56 |
|
20. Public Shareholding * |
|
|
Number of Shares |
462854067 |
|
Percentage of
holdings |
18.90% |
|
21. Promoters and promoter group shareholding
|
|
|
a) Pledged /
Encumbered |
|
|
- Number of
Shares |
Nil |
|
- Percentage of
Share (as a % of the total shareholding of Promoter and promoter group) |
Nil |
|
- Percentage of
Share (as a % of the total share capital
of the company) |
Nil |
|
|
|
|
b) Non-
Encumbered |
|
|
- Number of
Shares |
1945953763** |
|
- Percentage of
Share (as a % of the total shareholding of Promoter and promoter group) |
100% |
|
- Percentage of
Share (as a % of the total share capital
of the company) |
79.45% |
|
|
|
|
Details of
Expenditure |
|
|
Items exceeding
10% of total expenditure |
|
|
Employee Cost |
25358.000 |
* Public
shareholding as defined under clause 40A of the listing agreement (excludes share
beneficially held by promoters and holders of American Depository Receipt)
** Includes
10843333 (June 30, 2009 8016000 and March 31, 2010: 6506000) Equity Shares on
which Promoter does not have beneficiary interest.
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 |
|
|
¥4,190 |
|
|
CHF 6 |
|
|
|
|
Buy |
-- |
|
Non Designed Derivatives
Instruments |
|
|
Cross Currency
swaps |
¥33,014 |
|
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 wins 5-year
IT Outsourcing Contract from Vasan Eye Care
Wipro Infotech, the India, Middle East and Africa, IT Business of Wipro
Limited, and a leading provider of IT and business transformation services
announced today, that it has been awarded a 5-year IT outsourcing contract by
Vasan Eye Care - one of India's largest network of eye care centres and a unit
of Vasan Healthcare Group. As part of this contract, Vasan Eye Care will
outsource its entire IT Infrastructure to Wipro, for monitoring and management
for duration of 5 years.
The scope of service includes entire IT Infrastructure management
encompassing the complete gamut of Datacenter Management and End User Support
Services. Vasan’s network of hospitals comprises close to 75 independent
hospitals, distributed across 4 southern states of
Endorsing the choice of Wipro as it’s trusted IT partner, Dr. A. M.
Arun, Chairman and Managing Director, Vasan Eye Care said, “Vasan has come a
long way and today is synonymous with world-class eye care and expertise. We
are happy to be associated with Wipro and trust Wipro to help us in our mission
to create a world-class service system by implementing world-class
technologies, and thereby achieve our vision of becoming the world’s largest
eye care provider.”
Dr. K Premraj , Chief Mentor, Vasan Eye Care said, “Vasan Eye Care has
proved to be a successful model in offering standardized, high-quality, Eye
Care in India. We were on the look out for an IT partner who would be able to
provide end-to-end IT services, as well as live up to the high standards we
have set for ourselves in the healthcare space. With Wipro on board, we are now
free to concentrate on our core competency of offering quality eye care to
patients across
Mr. Kiran Desai, Vice President and Business Head – Managed IT Services,
Wipro -
Wipro was selected for the engagement from among several domestic and
international IT players.
About Vasan Eye Care
Vasan Eye Care is a division of Vasan Healthcare Private Limited.
Headquartered at Tiruchirapally, it has grown consistently into one of the
fastest growing healthcare delivery enterprises in
About Wipro Infotech
Wipro Infotech, a division of the US $6 billion Wipro Limited, provides enterprise
customers with high value Information Technology Products, Software Services,
Solutions and Consulting Services in
About Wipro Limited
Wipro Limited provides comprehensive IT solutions and services, including
systems integration, information systems outsourcing, IT enabled services,
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. In the Indian market, Wipro is a leader in providing IT solutions and
services for the corporate segment in
Wipro's forward looking and cautionary statements
Certain statements in this release concerning our future growth
prospects and our ability to successfully complete and integrate potential
acquisitions 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 our ability to integrate and manage acquired IT professionals, our
ability to integrate acquired assets in a cost effective and timely manner,
fluctuations in earnings, our ability to manage growth, intense competition in
IT services including those factors which may affect our cost advantage, wage
increases in India, our ability to attract and retain highly skilled
professionals, time and cost overruns on 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, liability for damages
on our service contracts, the success of the companies in which Wipro has made
strategic investments, withdrawal of fiscal governmental incentives, political
instability, legal restrictions on raising capital or acquiring companies
outside India, unauthorized use of our intellectual property and general
economic conditions affecting our industry. Additional risks that could affect
our future operating results are more fully described in our filings with the
United States Securities and Exchange Commission. These filings are available
at www.sec.gov. Wipro 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. Wipro does not undertake to update
any forward-looking statement that may be made from time to time by or on
behalf of the company.
Results for the
quarter ended September 30, 2010 under IFRS
Wipro 10% YoY
Growth in Profit After Tax in Q2 FY11; YoY growth for H1 at 19%
Bangalore, India and East Brunswick, New Jersey, USA – October 22, 2010
-- Wipro Limited (NYSE:WIT) today announced financial results under
International Financial Reporting Standards (IFRS) for its second fiscal
quarter ended September 30, 2010.
Highlights of the
Results:
Results for the Quarter ended September 30, 2010
·
IT Services Revenue in dollar terms was $1,273
million, a sequential increase of 5.7% and YoY increase of 19.5%.
·
IT Services Revenue on a constant currency
(Non-GAAP) was $1,261 million, compared to our guidance range of $1,253 million
to $1,277 million.
·
Total Revenues were Rs. 77.31 billion ($1.73
billion1), representing an increase of 12% over the same period last year.
·
Net Income was Rs. 12.85 billion ($288 million1),
representing an increase of 10% over the same period last year.
·
Non-GAAP Adjusted Net Income (excluding impact of
accelerated amortization of stock based compensation) was Rs. 12.76 billion
($286 million1), representing an increase of 10% over the same period last
year.
·
IT Services Revenues were Rs. 57.47 billion ($1,290
million1), representing an increase of 15% over the same period last year.
·
IT Services Earnings Before Interest and Tax (EBIT)
was Rs.12.75 billion ($286 million1), representing an increase of 7% over the
same period last year.
·
IT Services recorded a 6.6% volume growth in the
quarter.
·
IT Services added 29 new clients in the quarter.
·
Net addition of 2,975 employees in the current
quarter in IT Services.
·
IT Products recorded sequential growth in Revenues
of 29% in the current quarter.
·
Consumer Care and Lighting Revenue grew 20% over
the same period last year and EBIT grew 13%.
Performance for
the quarter ended September 30, 2010 and Outlook for the quarter ending
December 31, 2010
Azim Premji Chairman of Wipro, commenting on the results said –
“We saw strong momentum in demand as customers tried to catch up with
the under-investment in IT in the previous years. We continue to enhance our
investments in Transformational Capabilities, Client Partners and Domain
Solutions. While the macro-economic environment continues to remain uncertain,
there is higher degree of confidence at the micro level. For the quarter ended
December 31, 2010, we expect Revenues from our IT Services business to be in
the range of $1,317 million to $1,343 million, a sequential increase of 3.5% to
5.5%*”
Suresh Senapaty, Executive Director and Chief Financial Officer of
Wipro, said –
“We saw a strong volume growth of 6.6% driven by higher offshore mix.
The Operating Margins for IT Services
declined during the quarter due to the impact of employee progressions,
Restricted Stock Units grants and lower foreign exchange realizations.”
* Guidance is based on the following constant currency exchange rates:
GBP/USD at 1.56, Euro/USD at 1.29,
AUD/USD at 0.94, USD/INR at 46.31 Wipro Limited
Total Revenue for the quarter ended September 30, 2010 was Rs. 77.31
billion ($1.73 billion1), representing an increase of 12% over the same period
last year. Net Income for the quarter ended September 30, 2010 was Rs.12.85
billion ($288 million1), representing an increase of 10% over the same period
last year. Non-GAAP Adjusted Net Income (excluding impact of accelerated
amortization of stock based compensation) for the quarter ended September 30,
2010 was Rs. 12.76 billion ($286 million1), representing an increase of 10%
over the same period last year. Earnings Per Share for the quarter ended
September 30, 2010 were Rs. 5.28 ($0.121). Non-GAAP Adjusted Earnings Per Share
(excluding the impact of accelerated amortization of stock based compensation)
for the quarter ended September 30, 2010 were Rs. 5.24 ($0.121), representing
an increase of 9% over the same period last year.
IT Services (74% of Total Revenue and 91% of Operating Income for the
quarter ended September 30, 2010) Our IT Services business segment recorded
Revenue of Rs. 57.47 billion ($1,290 million1) for the quarter ended September
30, 2010, representing an increase of 15% over the same period last year. EBIT
for this segment was Rs. 12.75 billion ($286 million1) for the quarter ended
September 30, 2010, representing an increase of 7% over the same period last
year.
Our Operating Income to Revenue for this segment was 22.2% for the
quarter ended September 30, 2010. We had 115,900 employees as of September 30,
2010, an increase of 2,975 people this quarter.Wipro’s capability to be a
transformational partner to our clients coupled with global domain expertise
helped us secure several large deals this quarter.
In the Energy and Utilities space, Wipro has entered into a multi-year
strategic partnership with a major electricity distribution network owner and
operator in
Wipro has entered into a contract with an electricity network owner and
major supplier within
Wipro won a multi-year contract with a global banking major. Wipro’s
engagement includes management of IT and BPO services for the customer with a
goal to transform the current services model to a shared services model and
deliver the ITO BPO synergy benefit beyond the cost savings.
Wipro entered into a multi-year engagement with a leading global ship
classification society for deploying next generation services through
business-IT alignment and implementing a future-ready IT architecture in
accordance with industry standards and global best practices. As part of this
engagement, Wipro will manage IT applications catering to the requirements of
surveyors, engineers, business users, business owners and end customers of this
society with a goal to make their business more efficient.
During the quarter, the
We entered into a multi-year strategic multimillion dollar outsourcing
deal from one of the largest global telecom service providers to create and
manage their enterprise networks in
Awards and
Recognition
Our continued focus on Cloud Computing technology gained momentum with
Wipro winning engagements in this space with two large utility companies and a
global insurance company. Wipro also launched “Comprehensive Cloud Services
Portfolio for ISVs” (Independent Software Vendors), an integrated framework
that can help companies to strategize and accelerate the Cloud / SaaS
transformational journey. The highlight of this offering is the patent pending
‘Quick SaaS Enablement’ which helps in faster time to market. Apart from
Enablement, it also provides Engineering, IT and Hosting Services making it a
‘One-Stop’ SaaS offering.
As testament to our continued focus on productized services, Network
Products Guide, a leading information technology research and advisory guide
named Wipro’s Enterprise Data Masking Solution and
Wipro’s commitment to continuous innovation and driving business value
for its customers in the consumer packaged goods industry received further
acknowledgement when two of its solutions – Sub-Daily Planning and Scheduling
(iSDPS) and Third Party Ordering (iTPO) – became SAP endorsed business
solutions. Wipro’s dominance and authority in the independent Testing Services
space was further reflected in recognition from IDC Research Inc., an
independent research firm, as a leader among Tier-1 Testing Services Providers
in a July 2010 report titled “IDC MarketScape: Global Testing Services, 2010
Vendor Analysis”. Wipro was ranked among leaders in both the enterprise
application testing views and in the product engineering testing services
assessment.
Wipro became the first Healthcare IT Services organization to be
certified for IEEE 11073 (x73) based software reference system for 5 certified
device classes. Wipro’s x73 Manager USB Reference System was certified by
Continua Health Alliance, a non-profit, collaborative industry organization
dedicated to defining technology standards for healthcare solutions. This
solution will enable and simplify the needs of clinical diagnostic applications
to collect vital medical data from homecare devices and bed-side monitors
through application programming interfaces (API’s) thereby forming a critical
enabler for customers in the fast growing remote patient monitoring system,
home healthcare and e-health markets.
During this quarter, Wipro eEnabler, a prescriptive Service Oriented
Architecture (SOA) has been granted a notice of allowance for issue of patent.
eEnabler is a complete SOA solutions Kit – including SOA Platform, prescriptive
architecture and framework for rapid development of SOA applications. It has
been applied in many large SOA implementations for our global clients.
IT Products (14% of Total Revenue and 4% of Operating Income for the
quarter ended September 30, 2010)
Our IT Products segment recorded Revenue of Rs. 10.69 billion ($240
million1) for the quarter ended September 30, 2010, representing a decline of
10% over the same period last year. EBIT for this segment was Rs. 533 million
($12 million1) for the quarter ended September 30, 2010, representing a
decrease of 13% over the same period last year.
The ratio of our Operating Income to Revenue for this segment was 5.0%
for the quarter ended September 30, 2010.
Return on Average Capital Employed (ROCE) for the IT Services and Products
segment was 40% on an annualized basis for the quarter ended September 30, 2010
Consumer Care and Lighting (9% of Total Revenue and 6% of Operating Income for
the quarter ended September 30, 2010)
Our Consumer Care and Lighting business segment recorded Revenue of Rs.
6.65 billion ($149 million1) for the quarter ended September 30, 2010,
representing an increase of 20% over the same period last year. EBIT for this
segment was Rs. 831 million ($19 million1) for the quarter ended September 30,
2010, representing an increase of 13% over the same period last year.
Operating Income to Revenue for this segment was 12.5% for the quarter
ended September 30, 2010. ROCE for this segment was 16% on an annualized basis
for the quarter ended September 30, 2010, compared to 16% 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 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 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
believe 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 financial and business
trends.
For 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. 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 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.
Results for the quarter ended September 30, 2010, computed under IFRS,
along with individual business segment reports, are available in the Investors
section of our website at www.wipro.com.
Quarterly Conference Calls We will hold conference calls today at 02:00 p.m.
Indian Standard Time (04:30 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 or sridhar.ramasubbu@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.
Wipro also has a strong presence in niche market segments of Infrastructure
Engineering and Consumer Products and Lighting.
Wipro’s American Depositary Shares (ADSs) are listed on the New York
Stock Exchange and equity shares are listed in
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 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, including, but not limited to, Annual Reports on Form
20-F. 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,
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.44.90 |
|
|
1 |
Rs.72.54 |
|
Euro |
1 |
Rs.63.39 |
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.