MIRA INFORM
REPORT
|
Report Date : |
19.05.2012 |
IDENTIFICATION DETAILS
|
Name : |
WIPRO LIMITED |
|
|
|
|
Registered
Office : |
Doddakannelli, Sarjapur Road, Bangalore – 560
035, Karnataka |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on)
: |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
29.12.1945 |
|
|
|
|
Com. Reg. No.: |
08-20800 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 4908.000 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. |
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|
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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. |
|
|
|
|
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 90000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
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|
|
|
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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
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 : |
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|
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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, 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, Andhra Pradesh, India
> Survey Nos.
64, Serilingampali Mandal, Madhapur, Hyderabad - 500 033, Andhra Pradesh, India > Queens Plaza, S P Road, Hyderabad - 500 033, Andhra Pradesh,
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, |
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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, 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, M. G. Road, Bangalore – 560
001, Karnataka, India
Tel.
No.91-80-2558 8422 Fax No.91-80-2558
6657 Wipro Consumer Care and Lighting Group
Nirmal, 241-242, Nariman Point, Mumbai – 400 021,
Maharashtra, India Tel. No.91-22-22029254 Fax No.91-22-2284 1143 Wipro Fluid Power
9B/10A Peenya
Industrial Area, Bangalore – 560 058, Karnataka, India Tel. No.91-80-2839 4982 Fax No.91-80-2839 6450 Wipro Biomed
903/904 Prakash
Deep, 7, Tolstoy Marg, New Delhi – 110 001, India Tel.
No.91-11-2332 5677 Fax No.91-11-2373
8675 Wipro Lighting
Tulsi Chambers,
Opp. St. Francis D’Sales High School, Jalna Road, Aurangabad – 431 001,
Maharashtra, India Tel. No.91-240-2333
351 Fax
No.91-240-2334 001 Plot No. 21,
Special Economic Zone, Kiadb Aerospace Park, Bangalore North, Devanahalli,
Bangalore – 560056, Karnataka, India |
DIRECTORS
As on 31.03.2011
|
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. Narayan
Vaghul |
|
Designation : |
Chairman, ICICI Bonk Limited |
|
Date of
Appointment : |
09.06.1997 |
|
|
|
|
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 |
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|
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|
Name : |
Mr. Suresh Vaswani |
|
Designation : |
Joint CEO, IT Business and Director |
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|
|
|
Name : |
Mr. William Arthur Owens |
|
Designation : |
Directors |
|
|
|
|
Name : |
Dr. Henning Kagermann |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Shyam Saran |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. T.K. Surien |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. V. Ramachadran |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2012
Category of Shareholders
|
NO. OF SHARES
|
PERCENTAGE (%)
|
|
|
|
|
|
(A) Shareholding of
Promoter and Promoter Group |
|
|
|
|
|
|
|
|
95419432 |
3.95 |
|
|
11406331 |
0.47 |
|
|
1821055120 |
75.35 |
|
|
1625868000 |
67.27 |
|
|
195187120 |
8.08 |
|
|
1927880883 |
79.77 |
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
1927880883 |
79.77 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
49882499 |
2.06 |
|
|
422679 |
0.02 |
|
|
33532300 |
1.39 |
|
|
163931370 |
6.78 |
|
|
247768848 |
10.25 |
|
|
|
|
|
|
69420414 |
2.87 |
|
|
|
|
|
|
51531870 |
2.13 |
|
|
79294900 |
3.28 |
|
|
408894503 |
1.69 |
|
|
23381102 |
0.97 |
|
|
15034711 |
0.62 |
|
|
156094 |
0.01 |
|
|
2269484 |
0.09 |
|
|
53112 |
- |
|
|
241141687 |
9.98 |
|
Total Public
shareholding (B) |
488910535 |
20.23 |
|
Total (A)+(B) |
2416791418 |
100.00 |
|
(C) Shares held by Custodians
and against which Depository Receipts have been issued |
- |
|
|
|
- |
-- |
|
|
41964810 |
-- |
|
|
41964810 |
-- |
|
Total (A)+(B)+(C) |
2458756228 |
|
(1)
Indian
Individuals
/ Hindu Undivided Family
Partnership
Firms
BUSINESS DETAILS
|
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. |
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Products/
Services : |
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PRODUCTION STATUS AS ON 31.03.2011
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
|
|
|
|
|
|
Vanaspati / Hydrogenated oils |
TPA |
NA |
45000 |
|
Toilet Soaps |
TPA |
NA |
134026 |
|
Leather shoe uppers |
TPA |
NA |
750 |
|
Fatty acids |
TPA |
NA |
78450 |
|
Glycerine |
TPA |
NA |
1650 |
|
General lighting systems lamps |
000s |
NA |
110305 |
|
Fluorescent tube lights |
000s |
NA |
27097 |
|
Compact flourescent lamps |
000s |
NA |
23355 |
|
Mini computers / micro processor based
systems and data communication systems |
|
|
691200 |
|
Hydraulic and Pneumatic tubes |
Nos. in 000s |
NA |
831140 |
|
Tipping Gear systems |
NPA |
NA |
50000 |
NOTES:
@ Installed capacities are as per certificate given by management on
which auditors have relied.
* TPA indicates tons per annum
# NPA indicates nos. per annum
** The company is exempt from the licensing provisions of the Industries
(Development Regulation) Act, 1951.
GENERAL INFORMATION
|
No. of
Employees : |
14000
(Approximately) |
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Bankers : |
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Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
BSR and Company Chartered
Accountants |
|
|
|
|
Direct Subsidiaries : |
|
CAPITAL STRUCTURE
After 19.07.2011
Authorised Capital: Rs.5550.000 Millions
Issued, Subscribed & Paid-up Capital: Rs.4918.286 Millions
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2650000000 |
Equity Shares |
Rs.2/- each |
Rs.5300.000 Millions |
|
25000000 |
10.25% Redeemable Cumulative Preference
Shares |
Rs.10/- each |
Rs.250.000 Millions |
|
|
Total
|
|
Rs.5550.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2454409145 |
Equity Shares |
Rs.2/- each |
Rs. 4908.000 Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
4908.000 |
2936.000 |
2930.000 |
|
|
2] Share Application Money |
7.000 |
18.000 |
15.000 |
|
|
3] Share Issuable |
0.000 |
0.000 |
0.000 |
|
|
4] Reserves & Surplus |
208294.000 |
173968.000 |
122204.000 |
|
|
5] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
213209.000 |
176922.000 |
125149.000 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
47441.000 |
55302.000 |
50139.000 |
|
|
TOTAL BORROWING |
47441.000 |
55302.000 |
50139.000 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
260650.000 |
232224.000 |
175288.000 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
42370.000 |
36563.000 |
31796.000 |
|
|
Capital work-in-progress |
6031.000 |
9911.000 |
13118.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
108134.000 |
89665.000 |
68845.000 |
|
|
DEFERREX TAX ASSETS |
108.000 |
348.000 |
577.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
7249.000
|
6069.000
|
4597.000
|
|
|
Sundry Debtors |
57813.000
|
47547.000
|
42992.000
|
|
|
Cash & Bank Balances |
52033.000
|
56643.000
|
44092.000
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
67460.000
|
54846.000
|
43502.000
|
|
Total
Current Assets |
184555.000
|
165105.000
|
135183.000
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
36287.000
|
31116.000 |
15252.000 |
|
|
Current Liabilities |
16613.000
|
15944.000
|
41912.000
|
|
|
Provisions |
27648.000
|
22308.000
|
17067.000
|
|
Total
Current Liabilities |
80548.000
|
69368.000
|
74231.000
|
|
|
Net Current Assets |
104007.000
|
95737.000
|
60952.000
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
260650.000 |
232224.000 |
175288.000 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
263005.000 |
229220.000 |
215073.000 |
|
|
|
Other Income |
6033.000 |
8667.000 |
(4804.000) |
|
|
|
TOTAL |
269038.000 |
237887.000 |
210269.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Sales and Services |
179807.000 |
154436.000 |
148070.000 |
|
|
|
Selling and Marketing Expenses |
16420.000 |
14022.000 |
13373.000 |
|
|
|
General and Administrative Expenses |
15170.000 |
11543.000 |
11379.000 |
|
|
|
TOTAL |
211397.000 |
180001.000 |
172822.000 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
57641.000 |
57886.000 |
37447.000 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST |
586.000 |
998.000 |
1968.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
57055.000 |
56888.000 |
35479.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
8618.000 |
7908.000 |
5741.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
48437.000 |
48980.000 |
29738.000 |
|
|
|
|
|
|
|
|
|
Less: |
Appropriation |
|
|
|
|
|
|
Interim Dividend |
4908.000 |
0.000 |
0.000 |
|
|
|
Proposed dividend |
9818.000 |
8809.000 |
5860.000 |
|
|
|
Tax on Dividend |
2204.000 |
1283.000 |
996.000 |
|
|
|
Amount transfer to general reserve |
4844.000 |
38888.000 |
22882.000 |
|
|
|
BALANCE CARRIED
TO THE B/S |
26663.000 |
0.000 |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
Export of goods on F.O.B. basis |
6291.000 |
4186.000 |
5958.000 |
|
|
|
Services |
177192.000 |
163390.000 |
159963.000 |
|
|
|
Agency Commission |
288.000 |
353.000 |
308.000 |
|
|
|
TOTAL
EARNINGS |
183771.000 |
167929.000 |
166229.000 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
Raw Material, Components and Peripherals |
27358.000 |
17484.00 |
9137.000 |
|
|
|
Stores and Spares |
40.000 |
43.000 |
13.000 |
|
|
|
Capital Goods |
231.000 |
715.000 |
244.000 |
|
|
|
TOTAL
IMPORTS |
27629.000 |
18242.000 |
9394.000 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
19.88 |
20.16 |
20.24 |
|
|
|
Diluted |
19.78 |
20.03 |
20.38 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
31.03.2012 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
73113.000 |
78048.000 |
83165.000 |
83783.000 |
|
Total Expenditure |
57709.000 |
62904.000 |
67259.000 |
68527.000 |
|
PBIDT (Excl OI) |
15404.000 |
15144.000 |
15906.000 |
15256.000 |
|
Other Income |
2104.000 |
2067.000 |
1991.000 |
4832.000 |
|
Operating Profit |
17508.000 |
17211.000 |
17897.000 |
20088.000 |
|
Interest |
789.000 |
2298.000 |
2006.000 |
964.000 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
16719.000 |
14913.000 |
15891.000 |
19124.000 |
|
Depreciation |
1740.000 |
1912.000 |
1875.000 |
1934.000 |
|
Profit Before Tax |
14979.000 |
13001.000 |
14016.000 |
17190.000 |
|
Tax |
2786.000 |
2495.000 |
3377.000 |
3677.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
12193.000 |
10506.000 |
10639.000 |
13513.000 |
|
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 |
12193.000 |
10506.000 |
10639.000 |
13513.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
18.00 |
20.58 |
14.14 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
21.69 |
24.82 |
16.50 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
25.14 |
28.21 |
20.71 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.26 |
0.32 |
0.28 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.60 |
0.70 |
0.99 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.29 |
2.38 |
1.82 |
LOCAL AGENCY FURTHER INFORMATION
|
Check List by Info Agents |
Available in Report (Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
Yes |
|
5) Type of Business |
No |
|
6) Line of Business• |
Yes |
|
7) Promoter’s background |
Yes |
|
8) No. of employees |
Yes |
|
9) Name of person contacted |
No |
|
10) Designation of contact person |
No |
|
11) Turnover of firm for last three years |
Yes |
|
12) Profitability for last three years |
Yes |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
No |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
No |
|
20) Export / Import details (if applicable) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter |
-- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
Yes |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
Yes |
|
28) Incorporation details, if applicable |
Yes |
|
29) Last accounts filed at ROC |
Yes |
|
30) Major Shareholders, if available |
Yes |
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
FINANCIAL
PERFORMANCE
Profit for the year in standalone result is after Rs. 326 million (March
2010: Rs. 4,534 million of gains/(losses) relating to changes in fair value of
forward contracts designated as hedges of net
investment in non-integral foreign operations, translation of foreign currency borrowings and changes in
fair value of related cross currency
swaps together designated as hedges of
net investment in non-integral foreign operations. In the consolidated
Accounts, these are considered as hedges of net investment in non-integral
foreign operations and are recognized
directly in shareholders’ funds.
GLOBAL AND
INDUSTRY OUTLOOK
According to NASSCOM Strategic Review 2011, IT spend in 2011 is expected
to grow about 4%. It is expected that in 2011, there will be increased use of
Cloud and Mobile Computing. IT Services is expected to grow by about 3.5% in
2011 and 4.5% in 2012. Organizations will look for alternative IT models like
Cloud, On-demand Services, SaaS, etc, – in order to reduce hardware
infrastructure costs and achieve scalability on demand. The Forrester US and Global
IT market Outlook Q3, 2010- 11 predicts that U.S. IT market will grow by 6.6%
in 2011. Companies are increasingly
turning to Of shore Technology Service providers in order to meet their needs
for high quality, cost competitive technology solutions. As a result, spending
in several IT categories is expected to expand.
MERGERS AND
ACQUISITIONS
During the year, the Company re-structured a few of its subsidiaries
including overseas subsidiaries through merger/ other legal process. Wipro Yardley
Consumer Care Private Limited, a Subsidiary Company got merged with Subject
w.e.f. April 1, 2010, being the Appointed Date.
MANAGEMENT'S
DISCUSSION AND ANALYSIS:
Economic Overview
The global economy, post the unprecedented economic downturn in 2008-09,
has seen signs of steady recovery. While the world output had decline by 0.6%
in 2009, it grew by 5% in 2010 and is
estimated to expand by 4.4% in 2011. While the economy is not completely out of
woods, there is a lot more reason for optimism. We are increasingly seeing a
bi-polar world with subdued growth in the developed markets and developing
markets growing at a healthy pace. Coupled with this change, they are also
seeing ecological sustainability gaining more prominence. Wipro is well positioned to profitably grow
in this evolving landscape. Their IT business addresses the needs of both the
developed and developing markets, as the customers look to transform their cost
and revenue in addressing their client needs. Their Consumer Care and Infrastructure
Engineering businesses seek to benefit from the economic boom of the emerging
markets. Their new business initiative ‘Eco Energy’ will help businesses become
eco-friendly in the way they operate
Business Segment
Overview
IT Services
Industry Overview
NASSCOM Strategic Review Report 2011 refers to IDC forecast of 5.7% CAGR
in worldwide IT spending for the period 2010-2014. IDC forecasts worldwide IT
services spending of approximately $684 billion by 2014, reflecting a CAGR of
4.5% from 2010-2014. However, Forrester US and Global IT Market Outlook Q1 2011
predicts that US IT market will grow by 8% in 2011 following a growth of 8.9%
in 2010. However, offshore IT spending
is expected to grow faster. Key factors supporting this projection are the growing
impact of technology-led innovation and the increasing demand for global
sourcing. India is a major component of the offshore IT outsourcing.
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.
India is also a leading destination for IT enabled services. The proven track record and client relationships
of established Indian IT services
companies; availability of a large, high quality, English speaking talent pool; industry moving
up the value chain to provide business
and technology solutions; and a
regulatory environment more friendly to investment are facilitating
India’s emergence as a global outsourcing hub.
According to NASSCOM Strategic Review Report 2011, the worldwide BPO
market is expected to touch $201 billion by 2014, representing a compounded
annual growth rate of 6.2% in the period 2010-2014
Performance
Highlight
Their revenue from IT Services business increased by 16% in Indian Rupee terms. In USD terms Their
revenue increased by 18.9% from $4,390 million to $5,221 million. This increase is primarily on account of
increase in volume by 16.8%. During the current year, werealised 51.7%ofrevenue
from work done in locations outside India (“Onsite”) and remaining 48.3% of
revenue was realized from the work performed from Their development center sin India (“Offshore”). As
part of their non-linearity drive and focus on improving revenue productivity,
we have increased their percentage of revenue contribution from Fixed Price
Projects to 45.7% as against 41.5% in the previous year. In FPP, we undertake to complete project
within agreed timeline for a given scope of work. The economic gains or losses realised from
completing the project earlier or later
than initially projected timelines accustoms.
IT Products
Industry Overview
According to NASSCOM Strategic Review Report 2011, IDC forecasts that
worldwide hardware spending will increase from $599 billion in 2010 to $767 billion
in 2014, representing a compounded annual growthrate,or CAGR, of6.4%. According
to IDC, the hardware market account for 40% of the Indian IT-BPO industry. The key components of the hardware industry
are servers, clients (desktops and laptops), storage devices, peripherals and
networking equipments. The overall
hardware growth is projected at 15.8%forthe India market with storage and
networking products leading growth within this segment in 2011. Spending in Government,
BFSI and Telecom sectors will be the key drivers for networking equipment
segment.
Consumer Care and
Lighting
Industry Overview
AC Nielsen estimates that India is amongst the fastest growing
geographies for FMCG, with a 2010 growth rate of 15% for the non-food segment.
This market is estimated to grow at a CAGR of 12% - 15% for the period
2011-2014. The household and personal
care FMCG market in the other Asian countries in which we operate including
Malaysia, Vietnam and Indonesia, are expected to grow at aCAGRof8%fortheperiod2011-2014.
The Indian domestic market for institutional lighting and office modular
furniture is estimated at U.S. $700
million and is expected to grow at the rate of
10% to 15% for the period
2011-2012.Key sectors contributing to the growth are expected to be modern work
spaces, IT-ITeS, Retail, Healthcare and
Government Infrastructure spending.
Wipro Credentials
Their Consumer Care and Lighting business focuses on niche profitable
market segments in personal care in specific geographies in Asia, Middle East and Africa, as well as office solutions
in India. We successfully leverage Their brands and distribution strengths to sustain
a profitable presence in the personal care sector, including personal wash,
fragrances, hair and skin care, male toiletries and household lighting
products. Their office solutions
include lighting products, modular
switches, modular furniture and security solutions. Their Santoor brand is the third largest in
India in the soap category, and Safi brand is the largest
Halal toiletries brand of
Malaysia. Their Yardley brand gives us a stronger presence in the Middle East,
and into the luxury segment of personal care. We are amongst the top 15 players in
personal care in India, and fTheir th largest player in personal care in both
Malaysia and Vietnam. We sell and market
Their consumer care products primarily
through Their distribution network in
India, which has access to 5,121 distributors and 1.6 million retail outlets
throughout the country. We sell significant portion of Their lighting products to major industrial and
commercial customers through Their
direct salesforce,from29salesoffices located throughout India
In Their other geographies, led by Malaysia, Vietnam, Indonesia and Greater China, we have direct
access to over 200,000 retail outlets,
with a significant presence in the fast growing modern trade
Results of operations for the years ended March 31, 2011 and 2010
Their total revenues increased by 14.5%.
This was driven primarily by a 16%, 21% and 53% increase in revenue from
Their IT Services, Consumer Care and
Lighting and Others business, including reconciling items, business
segments respectively. This increased revenue was partially offset by a decline
in revenue from Their IT Products business segment.
Their gross profit as percentage of Their total
revenue increased marginally by 17
basis points (bps). This was
primarily on account of an increase in gross profit as a percentage of revenue
from Their IT Products business by 41
bps, an increase in gross profit as a percentage of revenue from Their Others business, including reconciling items
by 379 bps. This increase was partially
offset by a decline in gross profit as a percentage of revenue from Their
IT Services and Consumer Care and
Lighting business.
Their selling and marketing
expenses as a percentage of revenue increased from 6.9% for the year ended
March31, 2010 to 7.1%forthe yearendedMarch31, 2011. In absolute terms selling
and marketing expenses increase by
19.2%, primarily due to an increase in the IT Services and Consumer Care and
Lighting business.
Their general and administrative
expenses as a percentage of revenue increased from 5.5% for the year ended
March 31, 2010 to 6% for the year ended March 31, 2011. In absolute terms
general and administrative expenses
increased by 23.7%, primarily due to increased expenses in the IT Services
business and IT Products business. This
increase was partially offset by a decline in the Consumer Care and Lighting
business.
•
As a result of the foregoing factors, Their operating income increased by
11.2%,fromR51,844million for the year ended March 31, 2010 to R57,668 million
for the year ended March31,2011.
·
Their
finance expenses, increased fromR1,324million for the year ended March
31, 2010 to R1,933 million for the year ended March 31, 2011. This increase is primarily due to increase of
R1,065 million in exchange loss on
foreign currency borrowings and related derivative instrument. This is
partially offset by lower interest expense by R456 million during the year
ended March 31, 2011, due to lower loans and borrowings.
·
Their
finance and other income, increased from R4,360 million for the year
ended March 31, 2010 to R6,652 million for the year ended March 31, 2011. Their
interest and dividend income increased by R2,408 million during the year ended
March 31, 2011 as compared to year ended March 31, 2010. This was partially
offset by decrease of R116 million in the gain from sale of investments during
the same period.
·
Their income
taxes increased by R420 million, from R9,294 million for the year ended March
31, 2010 to R9,714 million for the year ended March 31, 2011. Adjusted for tax
write-backs Their effective tax rate
declined from
·
17.8% for the year ended March 31, 2010 to 16.5%
for the year ended March 31, 2011. This decline is primarily due to higher
profit based deductions during the year ended March31,2011.
·
Their equity
in earnings of affiliates for the years ended March 31, 2010 and 2011 was R530 and R648 million, respectively. Equity in earnings of affiliates primarily
relates to the equity in earnings of Wipro GE.
·
As a result of the foregoing factors, Their profit attributable to equity holders
increased by R7,046 million, or 15.3%, from R45,931 million for the year ended March 31, 2010 to
R52,977 million for the yearendedMarch31,2011
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
AS PER WEBSITE
DETAILS
BUSINESS
DESCRIPTION :
Subject (Wipro), incorporated on December 29, 1945, is a global information technology (IT) services company. Wipro provides outsourced research and development, infrastructure outsourcing, business process outsourcing (BPO) and business consulting services. Wipro also provides a range of IT services, software solutions, IT consulting, BPO services and research and development services in the areas of hardware and software design to companies worldwide. The Company operates in three segments: IT Services, IT Products, Consumer Care and Lighting. The IT Services segment provides IT and IT enabled services to customers. Its key service offering includes software application development, application maintenance, research and development services for hardware and software design, data center outsourcing services and business process outsourcing services. The IT Products segment sells a range of Wipro personal desktop computers, Wipro servers and Wipro notebooks. The Company is also a value added reseller of desktops, servers, notebooks, storage products, networking solutions and packaged software for international brands. In certain total outsourcing contracts of the IT Services segment, the Company delivers hardware, software products and other related deliverables. The Consumer Care and Lighting segment manufactures, distributes and sells personal care products, baby care products, lighting products and hydrogenated cooking oils in the Indian and Asian markets. As of March 31, 2011, the Company held 49% interest in Wipro GE. On June 10, 2011, the Company acquired the global oil and gas information technology practice of the Commercial Business Services Business Unit of Science Applications International Corporation (SAIC). In April 2010, Wipro GE Medical Systems (Wipro GE) acquired medical equipment and related businesses from General Electric IT Services.
The Company’s IT Services segment provides a range of IT and IT enabled
services, which include IT consulting, custom application design, development,
re-engineering and maintenance, systems integration, package implementation,
technology infrastructure outsourcing, BPO services and research and
development services in the areas of hardware and software design. The Company
provides its clients customized IT solutions.
Business Application Services (BAS) offers integrated business solutions across
the application and technology landscape. Its business process transformation
solutions across the value chain are applied in the areas of enterprise
resource planning (ERP), supply chain management and customer relationship
management across packages, including SAP and Oracle. Wipro offers
business-to-customer (B2C), business-to-business (B2B), business-to-employee
(B2E) collaboration and commerce solutions driving business growth and
workforce effectiveness for organizations. Wipro offers a portfolio of
service-oriented integration solutions, including application-to-application
integration and B2B integration, enabling seamless cross-functional business
processes within the enterprise and across the extended value chain. The
Company offers end-to-end integrated Enterprise Security Solutions and IT
security services. Its solutions enhance performance of information security
and compliance programs to adapt constantly evolving and new business and IT
risks. Its services enable its clients to develop a testing strategy with
innovative solutions, approach and commercial models to ensure total quality
assurance. It enables organizations to navigate and adopt new paradigms, such
as Cloud/software as a service (SaaS), sustainability, digital marketing and
social computing.
The Company is engaged in the Infrastructure Management services space. The
Company launched IT360TM framework to help its customers maximize their IT
investments and IT effectiveness. Its industry specific service offerings
include customized solutions for various business processes. Its service
offerings include Data Center Management, Virtualization, Managed Network,
Managed Security, End User Computing Cloud, and Business Advisory services. The
Company’s BPO services include customer interaction services, such as
IT-enabled customer services, marketing services, technical support services
and IT helpdesks; finance and accounting services, such as accounts payable and
accounts receivable processing; process improvement services that provide
benefits of scale for repetitive processes, such as claims processing, mortgage
processing and document management; knowledge process outsourcing services,
which involve high-end knowledge work on intellectual property, equity and
finance, analytics, market research and data management, and process
transformational offerings, such as automated chats and e-mails, speech
analytics and interactive voice response (IVR)-based voice solution.
The Company’s product engineering services (PES) business enables customers to
build these current and next generation solutions. Its solutions include a
remote patient monitoring solution and a connected television (TV) solution, managed
printing services and a Collaborative Design, Manufacturing and Sustenance
(CDMS) program. The Company also launched a joint initiative with Microsoft to
offer Microsoft Lync Server 2010 qualification testing services for
communication products/solutions and CSA to provide localized testing and
certification services. Its Analytics and Information Management service line
helps customers accelerate enterprise performance through integrated analytical
solutions and frameworks. Its service line provides consulting, business
centric and technology specific analytical solutions and data management
frameworks developed through a complete ecosystem of partners, focusing on
industry specific analytics, optimization and operations analytics, enterprise
data warehouse, MDM, data quality and data life cycle management. Wipro
Consulting Services (WCS) is a business unit of Wipro, which is a provider of
integrated consulting, technology and outsourcing solutions. WCS has six major
consulting practices: business transformation, functional excellence (supply
chain, finance, hr, OCM and CRM), process excellence (lean it and lean
business), governance risk and compliance, enterprise architecture and
government consulting.
The Company competes with Accenture, IBM Global Services, Cognizant, Infosys
and Tata Consultancy Services. IT Products
The Company’s IT Products segment provides a range of IT products encompassing
computing, storage, networking, security and software products. Its
manufactured range of products consists of desktops, notebooks, Net Power
servers and super computers. The Company offers form, factors and
functionalities that cater to the entire spectrum of users-from individuals to
high-end corporate entities. The Company’s offerings under enterprise platforms
category consists of design and deployment services for enterprise class
servers, databases and server computing resource management software. Its
offerings under networking solutions category consists of consulting, design,
deployment and audit of enterprise wide area network (WAN), wireless local area
network (LAN) and unified communication systems. Its products under software
products category consists of enterprise application, data warehousing and
business intelligence software from software product companies. Its products
under data storage category consists of network storage, secondary and near
line storage, backup and storage fabrics. Its offerings under contact center
infrastructure include switch integration, voice response solutions, computer
telephony interface (CTI), customized agent desktop application, predictive
dialer, customer relationship management, multiple host integration and voice
logger interface. Its security products include intrusion detection systems,
firewalls and physical security infrastructure covering surveillance and
monitoring systems. The Company also offers technologies in the market,
including virtualization, internet protocol (IP) video solutions and private
cloud implementations. Wipro provides its offerings to enterprises under
industries, including government, defense, IT and IT enabled services
(IT-ITeS), telecommunications, manufacturing, utilities, education and banking,
financial services and insurance (BFSI) sectors.
The Company competes with HCL, Tata Consultancy Services, CMC, Redington, IBM,
Ingram, Dell, HP, Lenovo, Acer, Sony and Toshiba.
Consumer Care and Lighting
The Company’s Consumer Care and Lighting business segment focuses on personal
care in specific geographies in Asia, Middle East and Africa, as well as office
solutions in India. The Company leverages its brands and distribution strengths
to sustain a profitable presence in the personal care sector, including
personal wash, fragrances, hair and skin care, male toiletries and household lighting
products. Its office solutions include lighting products, modular switches,
modular furniture and security solutions. Its Santoor brand is the soap
category brand, and Safi brand is the Halal toiletries brand of Malaysia. Its
Yardley brand operates in the Middle East and into the luxury segment of
personal care.
The Company’s range of personal care products includes deodorants and
fragrances, hair care, bath and shower, skin care and other personal care
products. The Company has focused on consolidating its brand portfolio and has
about 34 brands, including brands, such as Yardley, Enchanteur, Safi, Eversoft
and Romano. Its product lines include soaps and toiletries, as well as baby
products. Its umbrella brands include Santoor, Chandrika, Wipro Active, Wipro
Baby Soft, a line of infant and child care products that includes soap, talcum
powder, oil, diapers and feeding bottles and wellness products.
The Company’s product line includes modular switches, incandescent light bulbs,
compact fluorescent lamps and luminaries. The Company operates both in
commercial and retail markets. Wipro has also developed commercial lighting
solutions for pharmaceutical production centers, retail stores, software
development centers and other industries. The Company has also developed
security solutions for household and institutional consumers. Its product line
of modular furniture is for office use, such as workstations, storage and
chairs. It operates both in commercial and retail markets. The Company sells
its products to software development centre, banks and financial institutions,
insurance companies and manufacturing companies who are in the process of
setting up new facilities or expanding their current workspaces. The Company
markets and sells its personal care products through a host of distribution
channels, which include modern retail outlets, hypermarts, supermarts,
traditional retailers, van operators and wholesalers. The Company sells and
markets its consumer care products primarily through its distribution network
in India, which has access to 5,121 distributors and 1.6 million retail outlets
throughout the country.
The Company competes with Unilever, Proctor and Gamble, Johnson and Johnson,
L’Oreal, ITC (FMCG), Godrej, Philips, General Electric, Bajaj, Crompton and BP
Ergo.
Others
The Company’s others segment includes its infrastructure engineering business.
The Company is a third-party manufacturer of hydraulic cylinders. The Others
segment is centered on its mobile construction equipment business and its
material handling business. The Company manufactures and sells cylinders and
truck hydraulics, and it also distributes hydraulic steering equipment and
pumps, motors and valves for international companies. The Company has
manufacturing facilities in Europe and India and sells to customers across the
globe. The Company is also in the water solutions business, which addresses the
entire spectrum of treatment solutions, systems and plants for water and waste
water for industries. The Company is also in the cleantech business.
The Company competes with UT Limited (India), Dongyong, Pacoma, Sundaram
Hydraulics, Dantal, the Kayaba,
Precision Hydraulics Company and Hyva.
BOARD OF DIRECTORS
AZIM H. PREMJI -
CHAIRMAN OF THE BOARD, CHIEF EXECUTIVE OFFICER, MANAGING DIRECTOR – CHAIRMAN
Mr. Azim H. Premji is the Chief Executive Officer, Chairman of the Board of Directors and Managing Director (designated as Chairman) of Subject since September 1968. More recently, Mr. Azim Premji, Chairman, Subject has been honored with the Padma Vibhushan award by Government of India for his contribution in trade and industry. Azim Premji is a graduate in Electrical Engineering from Stanford University, USA.
ASHOK SEKHAR GANGULY
- NON-EXECUTIVE INDEPENDENT DIRECTOR - DIRECTOR/BOARD MEMBER
Dr. Ashok Sekhar Ganguly is a Non-Executive Independent Director on the Board of Subject since 1999. He is the Chairman of Board Governance and Nomination Committee and Compensation Committee. He is currently the Chairman of ABP Private Limited (Ananda Bazar Patrika Group). Dr. Ganguly also currently serves as a non-executive Director of Mahindra and Mahindra Limited and Dr Reddy Laboratories Limited. Dr. Ganguly is the chairman of Research and Development Committee of Mahindra and Mahindra Limited, Member of Nomination, Governance and Compensation Committee and Chairman of Science, Technology and Operations Committee of Dr Reddy’s Laboratories Limited He is a member of the Prime Minister’s Council on Trade and Industry and the India-USA CEO Council, established by the Prime Minister of India and the President of the USA. Dr. Ganguly is a Rajya Sabha Member. He is a former member of the Board of British Airways Plc (1996-2005) and Unilever Plc/NV (1990-97); Dr. Ganguly was formerly Chairman of Hindustan Unilever Limited (1980-90). Dr. Ganguly was on the Central Board of Directors of the Reserve Bank of India (2000-2009). In 2006, Dr. Ganguly was awarded the CBE (Hon) by the United Kingdom. In 2008, Dr. Ganguly received the Economic Times Lifetime Achievement Award. Dr. Ganguly was awarded Padma Bhushan by the Government of India in January 1987 and Padma Vibhushan in January 2009.
HENNING KAGERMANN -
NON-EXECUTIVE DIRECTOR - DIRECTOR/BOARD MEMBER
Dr. Henning Kagermann is a Non-Executive Director of Wipro Limited effective Oct. 27, 2009. He served as Chief Executive officer of SAP AG until 2009. He has been a member of SAP Executive Board since 1991. He is also President of Acatech (German Academy of Science and Technology) and currently a member of supervisory boards of Deutsche Bank AG, Munich Re, Deutsche Post, Nokia and BMW Group in Germany. Dr. Henning Kagermann is a professor for Theoretical Physics at the Technical University Braunschweig, Germany and received honorary doctorate from the University of Magdeburg, Germany.
WILLIAM ARTHUR OWENS
- NON-EXECUTIVE INDEPENDENT DIRECTOR - DIRECTOR/BOARD MEMBER
Mr. William Arthur Owens is Non-Executive Independent Director of Subject since July 1, 2006. He is also a member of the Board Governance and Nomination Committee. He has held senior leadership positions at multinational corporations. From April 2004 to November 2005, Mr. Owens served as Chief Executive Officer and Vice Chairman of the Board of Directors of Nortel Networks Corporation, a networking communications company. From August 1998 to April 2004, Mr. Owens served as Chairman of the Board of Directors and Chief Executive Officer of Teledesic LLC, a satellite communications company. From June 1996 to August 1998, Mr. Owens served as President, Chief Operating Officer and Vice Chairman of the Board of Directors of Science Applications International Corporation (SAIC), a research and engineering firm. Presently, Mr. Owens serves as a member of the Board of Directors of Polycom Inc., Intelius, Flow Mobile, Unifrax and Chairman of Century Link Inc., a media communications company. Mr. Owens holds an M.B.A. (Honors) degree from George Washington University, a B.S. in Mathematics from the U.S. Naval Academy and a B.A. and M.A. in Politics, Philosophy and Economics from Oxford University.
B. C. PRABHAKAR -
NON-EXECUTIVE INDEPENDENT DIRECTOR - DIRECTOR/BOARD MEMBER
Mr. B.C. Prabhakar is a Non-Executive Independent Director on the Board of Subject since February 1997. He has been a practicing lawyer since April 1970. Mr. Prabhakar holds a B.A. in Political Science and Sociology and a BL. from Mysore University, India. Mr. Prabhakar serves as a non-executive Director of Automotive Axles Limited and 3M India Limited. He is also a member of the Audit, Risk and Compliance Committee and Chairman of the Administrative and Shareholder Investor Grievances Committee of Subject.
SHYAM SARAN –
DIRECTOR - DIRECTOR/BOARD MEMBER
Mr. Shyam Saran is a Director on Board since July 1, 2010. He is a career diplomat who has served in significant positions in the Indian government for over three decades. He belongs to the 1970 batch of the Indian Foreign Service. He last served as the Special Envoy of the Prime Minister of India (October 2006 to March 2010) specializing in nuclear issues, and he also was the Indian envoy on climate change. Prior to this he was the Foreign Secretary of the Government of India from 2004 to 2006. He also served as the Ambassador of India to Nepal, Indonesia, Myanmar and Mauritius. His diplomatic stints have taken him to Indian missions in Geneva, Beijing and Tokyo. He has been a Fellow of the United Nations Disarmament Program in Geneva, Vienna and New York. Mr. Saran holds a Post Graduate degree in Economics. Mr. Saran has been honored with the Padma Bhushan by the Government of India for his contribution in civil services.
SURESH C. SENAPATY -
CHIEF FINANCIAL OFFICER, EXECUTIVE DIRECTOR - DIRECTOR/BOARD MEMBER
Mr. Suresh C. Senapaty is the Chief Financial Officer and Executive Director of Subject since April 2008 and served with company in other positions since April 1980. He is a member of the Administrative/Shareholders and Investor Grievance Committee. Mr. Senapaty holds a B. Com. from Utkal University in India, and is a Fellow Member of the Institute of Chartered Accountants of India. Mr. Senapaty is on the Boards of the following Indian subsidiaries: Wipro Trademarks Holding Limited, Wipro Chandrika Limited, Wipro Travel Services Limited, Cygnus Negri Investments Private Limited, Wipro Technology Services Limited, Wipro Consumer Care Limited and Wipro GE Healthcare Private Limited. Mr. Senapaty is also the Chairman of the Audit Committee of Wipro Technology Services Limited.
JAGDISH N. SHETH -
NON-EXECUTIVE DIRECTOR - DIRECTOR/BOARD MEMBER
Dr. Jagdish N. Sheth is an Non-Executive Director on the Board of Subject since January 1999. He has been a professor at Emory University since July 1991. Dr. Sheth also serves on the boards of Safari Industries and Manipal Acunova Limited Dr. Sheth holds a B. Com (Honors) from Madras University, a M.B.A. and a Ph.D in Behavioral Sciences from the University of Pittsburgh, USA. Dr. Sheth is a member of Compensation Committee of Safari Industries and Chairman of Academy of Indian Marketing Professionals.
PRIYA MOHAN SINHA -
NON-EXECUTIVE INDEPENDENT DIRECTOR - DIRECTOR/BOARD MEMBER
Mr. Priya Mohan Sinha is a Non-Executive Independent Director of Subject on January 1, 2002. He is a member of Audit, Risk and Compliance Committee, Board Governance and Nomination Committee and Compensation Committee. He has served as the Chairman of PepsiCo India Holdings Limited and President of Pepsi Foods Limited since July 1992. From October 1981 to November 1992, he was on the Executive Board of Directors of Hindustan Lever Limited (currently Hindustan Unilever Limited). From 1981 to 1985, he also served as Sales Director of Hindustan Lever Limited (currently Hindustan Unilever Limited). Currently, he is also on the Boards of Bata India Limited, Lafarge India Private Limited. Mr. Sinha is also a member of Audit Committee of Bata India Limited, Chairman of Shareholder’s Grievance Committee of Bata India Limited and Chairman of Nomination, Governance and Compensation Committee of Bata India Limited He was also the Chairman of Reckett Coleman India Limited and Chairman of Stephan Chemicals India Limited. Mr. Sinha is also on the Advisory Board of Rieter India. Mr. Sinha holds a Bachelor of Arts from Patna University, and he has also attended the Advanced Management Program at the Sloan School of Management, Massachusetts Institute of Technology.
NARAYANAN VAGHUL - LEAD INDEPENDENT DIRECTORG - DIRECTOR/BOARD
MEMBER
Mr. Narayanan Vaghul is a Lead Independent Director on the Board of Subject. He is the Chairman of Audit, Risk and Compliance Committee, a member of the Board Governance and Nomination Committee and a member of the Compensation Committee. He was the Chairman of the Board of ICICI Bank Limited from September 1985 to April 2009. Mr. Vaghul is also on the Boards of Mahindra and Mahindra Limited, Mahindra World City Developers Limited, Piramal Healthcare Limited, and Apollo Hospitals Enterprise Limited. Mr. Vaghul is on the Boards of Hemogenomics Private Limited, Universal Trustees Private Limited, and IKP Trusteeship Services Limited. Mr. Vaghul is the Chairman of the Compensation Committee of Mahindra and Mahindra Limited and Piramal Healthcare Limited. Mr. Vaghul is also a member of the Audit Committee in Nicholas Piramal India Limited. Mr. Vaghul is a member of the Remuneration Committee of Mahindra World City Developers Limited and Apollo Hospitals Enterprise Limited. Mr. Vaghul is also the lead independent Director of Company. Mr. Vaghul holds Bachelor (Honors) degree in Commerce from Madras University, Mr. Vaghul was the recipient of the Padma Bhushan, by the Government of India during the year 2009-10. Mr. Vaghul also received the Economic Times Lifetime Achievement Award.
T. K. KURIEN - CEO –
IT - CHIEF EXECUTIVE OFFICER
Mr. T. K. Kurien is the Chief Executive Officer - IT Business, Executive Director of Wipro Limited effective February 1, 2011 and has served with company in other positions since February 2000. Mr. Kurien is a Chartered Accountant and holds a Bachelors Degree in Engineering. Mr. Kurien is also a member of the Board of Wipro GE Healthcare Private Limited
AZIM H. PREMJI -
CHAIRMAN OF THE BOARD, CHIEF EXECUTIVE OFFICER MANAGING DIRECTOR - CHIEF
EXECUTIVE OFFICER
Mr. Azim H. Premji is the Chief Executive Officer, Chairman of the Board of Directors and Managing Director (designated as Chairman) of Subject since September 1968. More recently, Mr. Azim Premji, Chairman, Subject has been honored with the Padma Vibhushan award by Government of India for his contribution in trade and industry. Azim Premji is a graduate in Electrical Engineering from Stanford University, USA.
VINEET AGRAWAL -
PRESIDENT - WIPRO CONSUMER CARE AND LIGHTING - DIVISION HEAD EXECUTIVE
Mr. Vineet Agrawal is the President - Wipro Consumer Care and Lighting of Subject since July 2002 and has served with the Company in other positions since December 1985. Mr. Agrawal holds a B.Tech. from IIT, New Delhi, India and an M.B.A. from Bajaj Institute of Management Studies, Mumbai, India.
MARTHA BEJAR -
CHAIRPERSON AND CEO OF INFOCROSSING INC - DIVISION HEAD EXECUTIVE
Ms. Martha Bejar is Chairperson and CEO of Infocrossing Inc of Subject since April 2011, and has served in other positions with company since July 2009. From June 2007 to June 2009, Ms. Bejar served as Corporate Vice President for the Communications Sector at Microsoft Corporation. Ms. Bejar also served as President of Nortel’s Caribbean and Latin America regions. Ms. Bejar is a graduate from Harvard School of Business — School Management Advance Program, and holds an M.B.A from Nova Southeastern University (USA) and BSIE from University of Miami (USA).
SURESH C. SENAPATY -
CHIEF FINANCIAL OFFICER, EXECUTIVE DIRECTOR - FINANCE EXECUTIVE
Mr. Suresh C. Senapaty is the Chief Financial Officer and
Executive Director of Subject since April 2008 and served with company in other
positions since April 1980. He is a member of the Administrative/Shareholders
and Investor Grievance Committee. Mr. Senapaty holds a B. Com. from Utkal University
in India, and is a Fellow Member of the Institute of Chartered Accountants of
India. Mr. Senapaty is on the Boards of the following Indian subsidiaries:
Wipro Trademarks Holding Limited, Wipro Chandrika Limited, Wipro Travel
Services Limited, Cygnus Negri Investments Private Limited, Wipro Technology
Services Limited, Wipro Consumer Care Limited and Wipro GE Healthcare Private
Limited. Mr. Senapaty is also the Chairman of the Audit Committee of Wipro
Technology Services Limited
PRESS RELEASES:
Wipro Records 19% YoY
Revenue Growth in the quarter
Bangalore, India and East Brunswick, New Jersey, USA
April 25, 2012
Subject (NYSE:WIT) today announced financial results under International Financial Reporting Standards (IFRS) for its fourth quarter and year ended March 31, 2012.
Highlights of the
Results:
Results for the Quarter ended March 31, 2012:
· IT Services Revenue was $1,536 million, a sequential increase of 2.0% and YoY increase of 9.7%.
· Non-GAAP constant currency revenue growth was 1.3% sequentially, in line with the guidance range.
· Total Revenues were 98.69 billion ($1.94 billion1), an increase of 19% YoY.
· Net Income was 14.81 billion ($291 million1), an increase of 8% YoY. Non-GAAP Adjusted Net Income was `14.81 billion ($291 million1), an increase of 8% YoY.
· IT Services Revenues were `75.9 billion ($1,491 million1), an increase of 21% YoY.
· IT Services Earnings Before Interest and Tax (EBIT) was `15.73 billion ($309 million1), an increase of
13% YoY.
· Our Operating Income to Revenue for IT Services was 20.7% for the quarter.
Results for the year
ended March 31, 2012
· IT Services Revenue was $5,921 million, an increase of 13.4% YoY.
· Total Revenues were `375.25 billion ($7.37 billion1), an increase of 21% YoY.
· Net Income was `55.73 billion ($1.1 billion1), an increase of 5% YoY
· IT Services Revenues were `284.31 billion ($5.59 billion1), an increase of 21% YoY.
· IT Services Earnings Before Interest and Tax (EBIT) was `59.27 billion ($1.16 billion1), an increase of
11% YoY.
· Our Operating Income to Revenue for IT Services was 20.8% for the year.
· Wipro declares a final dividend of `4 ($0.081) per share/ADS, taking the total dividend declared during the year to `6 ($0.121) per share/ADS.
Performance for the
quarter and year ended March 31, 2012
Azim Premji, Chairman of Wipro, commenting on the results said – “Corporations globally are focusedon leveraging technology to drive revenues and productivity. Our strategy is aligned to deliver value to our customers by partnering with them in this journey.”
Suresh Senapaty, Executive Director and Chief Financial Officer of Wipro, said – “Our focus on operations helped improve revenue productivity and deliver strong cash flows in a volatile environment.”
T K Kurien, Executive Director and Chief Executive Officer, IT Business, said – “We have delivered revenues in line with our guidance in an uncertain environment. Our restructuring journey started with us positioning the customer at the center of all our efforts – we have seen progress with customer satisfaction scores going up in each of the last 4 quarters and we have created better value for our clients, with 7 customers contributing more than $100 million in revenues.”
Outlook for the
Quarter ending June 30, 2012
We expect Revenues from our IT Services business to be in the range of $1,520 million to $1,550 million*.
* Guidance is based on the following exchange rates: GBP/USD at 1.58, Euro/USD at 1.31, AUD/USD at 1.07,
USD/ INR at 50.07
IT Services (76% of
Total Revenue and 93% of Operating Income for the year ended March 31, 2012)
The IT Services segment had 135,920 employees as of March 31, 2012, an increase of 13,535 people in the year. We added 41 new customers for the quarter and 173 new customers during the year.
Our investments in building deep domain knowledge and innovative delivery models to provide predictive outcomes to our clients have helped garner greater customer mindshare and helped win strategic deals.
The National University of Singapore, the largest university in Singapore and one of the most reputed in the APAC region, has chosen Wipro as a partner for a multi-million dollar IT Infrastructure Services engagement. This partnership constitutes one of the largest IT outsourcing engagements by the Singapore Government in the Higher Education sector.
Wipro has signed a multi-year deal with a large financial institution to provide development and operational support services. The scale and scope of this project will improve information lifecycle management, regulatory compliance and enhance data quality. This will help our customer achieve a leadership position in the market and help integrate acquisitions faster.
A leading global computing peripherals provider has selected Wipro to reduce the total cost of ownership of R and D for its legacy product portfolio. Wipro will be responsible for sustenance and enhancement of firmware for a large family of devices for the next 5 years.
Wipro has won a multi-year engagement with a leading communication service provider in North America, to provide technical support services and in future, enable a set of IT and Operations transformation initiatives.
Wipro won a large contract facilitated by NABARD to provide the total solution and implement core banking solutions (CBS) in the identified State Co-operative Banks and Central Co-operative Banks including providing the required database, middleware, network, project implementation and project management. With the help of CBS, the co-operative banks will facilitate the optimal technology use in rural financial sector.
Awards and accolades
Wipro was recognized by the Ethisphere Institute, a leading business ethics think-tank, as one of the 2012 World's Most Ethical (WME) Companies. This recognition is for a select number of companies from around the world who demonstrate consistently high levels of transparency, ethics and corporate responsibility.
Wipro won the prestigious Managed Services Vendor of the year 2011 from Corporate Publishing International (CPI), Dubai. The CNME awards are an annual event that recognizes both End Users and Vendors across 20 categories and this year the winners were chosen from 210 nominations.
The USPTO (United States Patent and Trademark Office) has granted a patent to Wipro for its invention in the area of Information management. The patent proposes an unique system and method which streamlines and improves overall efficiency of data migration and governance processes. The solution establishes an automated migration environment with repeatable and reusable processes for information led business transformation initiatives.
On April 2, 2012, Standard and Poor's Ratings Services raised its long-term corporate credit rating on Wipro to 'BBB+' from 'BBB'. The outlook is stable.
IT Products (10% of
Total Revenue and 3% of Operating Income for the year ended March 31, 2012)
· Our IT Products segment recorded Revenue of `38.44 billion ($755 million1) for the year ended March 31, 2012 an increase of 4% YoY. Revenue for the quarter was `9.37 billion ($184 million1), an increase of 3% YoY.
· EBIT was `1.79 billion ($35 million1) for the year, an increase of 11% YoY. EBIT was `438 million ($9 million1) for the quarter, an increase of 32% YoY.
· The ratio of our Operating Income to Revenue for this segment was 4.6% for the year and 4.7% for the quarter.
Consumer Care and
Lighting (9% of Total Revenue and 6% of Operating Income for the year ended
March 31, 2012)
· Our Consumer Care and Lighting business segment recorded Revenue of `33.4 billion ($656 million1) for the year, an increase of 23% YoY. Revenues for the quarter was `9.07 billion ($178 million1), representing an increase of 25% YoY.
· EBIT was `3.96 billion ($78 million1) for the year, an increase of 15% YoY. EBIT was `1.13 billion ($22 million1) for the quarter, an increase of 30% YoY.
· Operating Income to Revenue for this segment was 11.8% for the year and 12.5% for the quarter.
Wipro Limited
· Total Revenue for the quarter and year ended March 31, 2012 was `98.69 billion ($1.94 billion1) and `375.25 billion ($7.37 billion1) respectively.
· Net Income for the quarter and year ended March 31, 2012 was `14.81 billion ($291 million1) and `55.73 billion ($1.1 billion1) respectively.
· Non-GAAP Adjusted Net Income (excluding impact of accelerated amortization of stock based compensation) for the quarter and year ended March 31, 2012 was `14.81 billion ($291 million1) and `55.60 billion ($1.1 billion1) respectively.
Please see the table on page 7 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.
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 7 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. We consider a stock option award with a graded vesting schedule to be in substance a single award not multiple stock option awards and accordingly believe the straight line amortization reflects the economic substance of the award. 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. 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 These Non-GAAP financial measures 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 measures, 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.
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.
Results for the year
ended March 31, 2012, computed under IFRS, along with individual business
segment reports, are available in the Investors.
Quarterly Conference
Calls
We will hold a conference call 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 year and quarter. An audio recording of the management discussions and the question and answer session will be available online and will be accessible in the Investor.
About Wipro Limited
(NYSE: WIT)
Wipro 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. Wipro also has a strong presence in niche market segments of Infrastructure Engineering and Consumer Products and Lighting.
Forward-looking and
Cautionary Statements
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. We may, from time to time, make additional written and oral forward-looking statements, including statements contained in the company’s filings with the Securities and Exchange Commission and our reports to shareholders. We do not undertake to update any forward-looking
statement that may be made from time to time by us or on our behalf.
WIPRO LIMITED TO
ANNOUNCE RESULTS FOR FOURTH QUARTER AND YEAR ENDED MARCH 31, 2012 ON APRIL 25,
2012
Bangalore, India and East Brunswick, New Jersey, USA
April 11, 2012
Subject one of the leading providers of IT services globally, will announce results for the fourth quarter and the year ended March 31, 2012 on Wednesday, April 25, 2012 (late night, Tuesday, April 24, 2012, US Eastern Time).
At 02:00 PM IST* (4:30 AM US Eastern time) following the results announcement, Mr. Azim Premji, Chairman of Wipro, and the senior management will discuss the company’s performance for the quarter and answer questions sent by 10.30 AM IST* (1:00 AM US Eastern time)
The phone numbers to dial in for this conference call are:
|
Time |
02.00 PM - IST*
(4.30 AM-ET#) |
|
Primary Access Toll Number Standby Toll Number |
(+91 22) 6629 0047 (+91 22) 3065 0047 |
|
Bangalore Toll Number Bangalore Standby Toll Number |
080 3940 3977 080 6000 1221 |
|
US Toll Free Number US Standby Toll Number |
1 866 746 2133 1 323 386 8721 |
|
UK Toll Free Number |
0 808 101 1573 |
|
No passcode Required |
|
Wipro will also hold a conference call later that day for US and European analysts at 6:45 PM IST* (9:15 AM US Eastern time). To participate in the conference call, please dial the following numbers:
|
Time |
6.45 PM - IST* (9.15 AM-ET#) |
|
US / UK / Europe / International |
Listen only Mode |
|
US: 1 866 746 2133 US Standby: 1 323 386 8721 |
Primary Access Toll Number: (+91 22) 6629 0047 Standby Toll Number: (+91 22) 3065 0047 |
|
Canada: 1 877 881 1170 |
Bangalore Toll Number: (+91 80) 3940 3977 Bangalore Standby Toll: (+91 80) 6000 1221 |
|
UK: 0 808 101 1573 |
|
|
International: + 1 866 746 2133 |
|
|
No passcode Required |
|
Please dial the number five to ten minutes ahead of schedule. The operator will provide instructions on asking questions before and during the call.
The audio from the conference calls will be available online through a web-cast and can be accessed in the Investors section of the company’s.
The replay of these calls will be available 2 hours after the end of each call on following numbers:
02.00 PM IST* Call
Playback Numbers:
|
Phone Number |
Phone Number |
Pass-code / Conference ID |
Replay Dates |
|
|
India Toll |
(+91 22) 3065 1212 (+91 80) 3940 3988 |
Access Code: 94776# |
25-April 2012 to 24-May 2012 |
|
|
US Toll Free |
1 877 344 7529 |
Access Code: 94776# |
25-April 2012 to 24-May 2012 |
|
|
International Toll |
+1 412 317 0088 |
Access Code: 94776# |
25-April 2012 to 24-May 2012 |
|
About Wipro Limited
(NYSE:WIT)
Wipro 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.
Wipro also has a strong presence in niche market segments of Infrastructure Engineering, and Consumer Products and Lighting.
Wipro’s ADS are listed on the New York Stock Exchange, and its equity shares are listed in India on the Bombay Stock Exchange and the National Stock Exchange.
Wipro to Acquire Analytics Company, Applications Group
April 30, 2012
Subject (NYSE:WIT) today announced that it has signed an agreement to acquire Promax Applications Group (PAG), a leading player in trade promotion planning, management, and optimization solutions space for a total purchase consideration of AUD 35 Million.
As per industry estimates, consumer focused companies spend 12 to 25% of their gross annual sales on trade promotions. Organizations are increasingly leveraging analytics to enhance effectiveness and maximize the return on investment (ROI) of their spend on trade promotions.
“Analytics is a key growth driver of Wipro’s growth strategy. The acquisition of Promax Applications Group will strengthen Wipro’s positioning and capability in management, analytics and optimization of trade promotions, and further extends our leadership in analytics and information management services. Combining PAG’s deep industry expertise with Wipro’s proven experience in delivering end-to-end large business solutions to global clients, will enable our clients to maximize the ROI of Trade Promotion spends”, said K.R Sanjiv, Senior Vice President and Global Head, Analytics and Information Management, Wipro.
Don Nicol, CEO of Promax Applications Group, added "We are excited and proud at the prospect of joining Wipro which is recognized globally for its comprehensive portfolio of services and, strategic focus on advanced analytics capabilities. PAG will help Wipro to differentiate its offerings in the trade and marketing management space through an added value proposition. The combined entity will provide clients access to an enhanced portfolio of technologies and solutions, and provide employees enhanced training, growth and career opportunities."
Avendus Capital acted as the exclusive financial advisor to Wipro on this transaction.
Completion of the acquisition is subject to customary closing conditions and regulatory approvals and will be closed in the current April-June 2012 quarter. The newly formed entity will be called as Wipro Promax Analytics Solutions Pty Limited.
About Wipro Limited (NYSE: WIT - News)
Wipro 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. Wipro also has a strong presence in niche market segments of Infrastructure Engineering and Consumer Products and Lighting.
About Promax
Promax Applications Group (PAG) is a world–leading specialist in trade promotion planning, management, and optimization solutions. With headquarter operations based in Australia and offices now in New Zealand, Japan, Central Europe, United Kingdom and North America; PAG boasts an impressive stable of global consumer goods companies. Promax solutions are result of more than twenty years’ experience working in close collaboration with leading consumer goods manufacturers, retailers and distributors.
Promax solution has been designed to allow a seamless, automated process to Track, Predict and Optimize promotions and trade spend. It incorporates the most sophisticated tools to maximize a client's return on trade spend investment, and deliver optimal outcomes for retail partners.
Forward-looking and Cautionary Statements
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. 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.54.87 |
|
|
1 |
Rs.86.46 |
|
Euro |
1 |
Rs.69.48 |
INFORMATION DETAILS
|
Report Prepared
by : |
KVT |
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.