Wipro annual report 2013-14 analysis

FINANCIAL MANAGEMENT ASSIGNMENT

WIPRO ANNUAL REPORT 2013-2014 ANALYSIS

WIPRO IN BRIEF: ( pg 2-7 )

Wipro started its concern with the fabrication of vegetable oil in 1945 in a little town in western India and so expanded its concern and produced other consumer attention merchandises. It entered the IT industry in 1980s and continues to spread out since so.

WIPRO believes in 3 nucleus values:

1. Intensity to Win

2. Act with Sensitivity

3. Unyielding Integrity

WIPRO believes in being simple so that the undertakings can be understood easy and can be worked more efficaciously. Simplicity Fosters velocity and invention. And this is what WIPRO precisely believes in.

To be first-class at what it does, WIPRO has focused on 3 parametric quantities:

1. Proper history direction to hold turning and positive consequences. The have constructions that and state particular and have hired local experient forces as regional caputs. This has helped them to construct better dealingss and have a successful scheme execution.

2. WIPRO besides believes in puting to a great extent in the new and more machine-controlled engineering to run into the of all time turning demands of the concern. They believe in linking to their clients and giving them the best of what WIPRO has. They believe that interactions and minutess are what consequence in their monolithic growing. They are invariably seeking to better their abilities and develop their accomplishments to be able to introduce and present.

3. WIPRO believes in understanding their customers’ concern along with the relationship they portion with the client so that they can constantly introduce and present better consequences and solutions. An IDC Marketscape besides rated WIPRO as “MAJOR PLAYER” in the EMEA utilities market. Their sphere cognition in the several field is assisting them appreciate the industry and travel faster and accommodate these active alterations.

4. WIPRO, along with its strategic spouses like SAP, Oracle, Microsoft etc purposes at co-creating and co-innovating for the hereafter. WIPRO believes that more than the engineering, it’s the people who are the pillars of the organisation. They work hard to retain, satisfy and delight their clients.

Besides, WIPRO has identified 6 market breaks that could alter the scenario:

Consumerisation

Consumption Models

Regulations

Complexity

Cyber Security

Changing Stakeholder Influence

WIPRO has come up with 6 schemes to get the better of these breaks:

Focus on nucleus strengths

Work on engineering breaks

Change the manner they sell

Build solutions and human assets

Build better ecosystem

Deliver efficiency

WIPRO besides believes that concerns need to be flexible, modular and advanced to pull off the tremendous interest holders and communicate well to be able to remain relevant in the hereafter. Innovation and value creative activity is the key for being a good concern participant and this is what it takes to prolong in the competition today every bit good as in the hereafter. WIPRO has witnessed important displacements in assorted subdivisions of its concern and have ever aimed at value creative activity and optimizes solution proviso for its clients.

FINANCIAL HIGHLIGHTS: ( pg 8-9 )

We can see that the Revenue has increased from 322,075 million rupees in FY 2011-12 to 437,628 million rupees in FY 2013-14. This tells us that the concern is steadily turning.

The Share Capital and the debt has besides increased imputing to the fact that the concern needs more financess and besides since the concern is gaining net incomes people are demoing religion in WIPRO and puting in it. Further detailed analysis of these studies shall be done in the 2nd portion of the assignment.

The graphs state us about the growing or diminution in assorted subdivisions of the company.

The entire gross from go oning operations is increasing steadily and there is an addition in the work force employed every bit good.

The Voluntary Attrition rate was 17.5 % in FY 2011-12 which has reduced to 15.1 % in FY 2013-14 screening that the employees are relatively more stable. However, it was 13.7 % in FY 2012-13 which is lower that 2011-12 but increased in FY 2013-14.

There is an addition in the gender diverseness every bit good in WIPRO. The per centum of adult females employees was 28.4 % in 2011-2012 which increased to 30 % in 2012-13 farther increasing to 30.7 % in 2013-14. This shows that the company is giving an equal chance for adult females to work with them.

Since the company is steadily turning and gaining more, it is even giving out higher dividends to its stockholders. The dividend was rs.6/share in 2011-12 and is now rs.8/share in 2013-14.

This shows that the company believes in sharing its net incomes with those who have showed religion in the organisation and invested in its portions.

There is a lessening in the figure of stockholders in the company but the market monetary value of these portions has foremost decreased and so increased.

CHAIRMAN’S LETTER TO THE STAKEHOLDERS ( pg10-11 )

In the chairman’s addressal to the stakeholders, he emphasizes on the importance of Information and Communication Technology. He states as to how these have transformed our lives and have a immense societal every bit good as economic impact. He besides tells that thought a batch of factors have contributed to the development and promotion of engineering, the cardinal factor is the spread of instruction across the universe since the last 50-70 old ages. He says that today a larger ball of population have entree to instruction which was non available before and besides a batch of sections that were deprived or excluded now have started deriving cognition.

WIPRO started “Wipro Applying Thoughts in Schools” which focused on bettering Indian School Education. In 2007 WIPRO launched “Mission 10X”which aimed at bettering the quality of technology colleges in India. They have besides partnered with Michigan State University and University of Massachusetts and are involved in assorted other schools where over 250 instructors take preparation in math and scientific discipline to develop expertness and serve the deprived communities.

Last twelvemonth WIPRO besides commenced a plan for alumnuss in the United Kingdom which provides them with on-the-job preparation, connexion with the industry and smoothing their endowment. They besides started a plan in South Africa for the pupils from communities that are deprived and besides provided employment to them. WIPRO has ever worked towards the betterment in instruction and has ever felt responsible towards these communities.

The missive besides tells about the company’s public presentation on the concern forepart. During 2013-14 WIPRO’S market capitalisation increased over 24 % and besides proved to be a sustainable company by being selected as a member of the Dow Jones Sustainability Index for the 4Thursdayclip in a row. In the terminal the president has thanked all his stakeholders, employees, spouses and clients for their changeless support and religion in WIPRO.

CEO’S LETTER TO THE STAKEHOLDERS ( pg 12-13 )

The missive from the CEO negotiations about the development and promotion of WIPRO. It tells that the concern has picked up, peculiarly in the USA. The clients are demoing more assurance in the company and are excited about the technological promotions. To hold more “Customer Centricity” the organisation has decided to concentrate on 3 countries.

1. Customer experience:

The Company shall concentrate on giving its clients a delicious experience. Their Global Client Partner Model has helped them a batch to better client satisfaction. The company shall supply with the best solutions and options.

2. Execution Excellence:

The company shall ever seek to maintain the procedure simple and extinguish all the unneeded stairss or procedures. The company will besides go more and more machine-controlled therefore cut downing clip and giving better consequences.

3. Predictability:

The ability to foretell issues and chances consequences in excellence in executing and better client experience. Maximal mechanization and truth are the cardinal countries WIPRO marks on. WIPRO shall go on to increase mechanization, build competency, increase operational efficiency and promote right accomplishment undertakings.

Through these attempts the company shall be able to anticipate the possible jobs and come up with solutions good in clip. They shall besides stress on “next level” adulthood by utilizing robotics etc. The company shall ever make what is best for its clients, stakeholders and its employees.

CFO’S LETTER TO THE STAKEHOLDERS ( pg 14-15 )

In the missive by the CFO, he tells about the fiscal growing of the company. The grosss generated by IT have gone up by 18 % and the net income grew 27 % . Besides with the addition in these net incomes the dividend payout increased by rs.2880 million.

The CFO besides states that the company has a good and healthy balance sheet and steady hard currency flows. The chief focal point is to hold a profitableness growing and have enhanced operational efficiencies by increasing productiveness and presenting value to its clients.

The CFO states that there has been a steady planetary growing and hence India is optimistic about the increasing demands. With the alterations in the ordinances, the company’s chief purpose is to take advantage of all the chances and to increase the stockholder value. The company has besides managed to win the rubric of being the “World’s Most Ethical Company” for the 3rdclip by the Ethisphere Institute.

BOARD OF DIRECTORS ( pg16-21 )

MR. AZIM PREMJI- Chairman

Alumnus in Electrical Technology from Stanford University, USA.

Established Azim Premji Foundation which works in 7 provinces in India and has over 300,000 schools. In 2011 Azim Premji University was established which focuses on plans associating to human development.

He was featured as “India’s Tech King” on the screen of Business Week in October 2003.

Listed amongst top 30 enterprisers in universe history in July 2007.

Time listed him among the 100 most influential people in April 2004 and April 2011 for his part towards the betterment in the Indian instruction system.

Besides named as one of the most powerful concern leaders outside US by Fortune in August 2003.

And as one of 10 people globally with most “power to consequence change” by Forbes in March 2003.

And one amongst the top 10 minds by Journal of foreign Policy in November 2011.

He is the first Indian to have Faraday Medal and has honorary doctor’s degrees by the Michigan State University and Wesleyan University ( in the USA ) and IIT Bombay and Roorkee.

All India Management Association Managing India Award was presented to him for his inspiring values and his part to the society.

Besides received Lifetime Achievement Award by The Economic Times in December 2013.

Mr. Premji is a member of the Strategy Committee of the company.

MR. T.K. KURIEN- Executive Director and Chief Executive Officer

He is a hired comptroller by making.

Was the CFO of GE Medical systems ( South Asia )

Was the pull offing manager of GE X beam from October 1997 to January 2000

In early old ages at WIPRO he started Telecom Internet Service Provider which contributed significantly to WIPRO’s grosss.

Was appointed the Chief Executive of WIPRO’s health care and life scientific disciplines in February 2003.

Headed the WIPRO BPO from 2004 to 2008.

Serves as the chair of India Advisory Board of Catalyst, an organisation working for enlargement of chances for adult females.

MR. SURESH SENAPATY- Executive Director and Chief Financial Officer

He is a fellow member of the Institute of Chartered Accountants of India.

He is the president of the Audit/Risk and Compliance Committee and a member of the Administrative/Shareholders and Investors Grievance Committee of WIPRO Ltd.

He is a member of Securities and Exchange Board of India’s commission on accounting and revelation criterions.

Was awarded the ‘best CFO’ by CNBC-TV 18.

Was involved in the amalgamation of assorted companies such as Wipro Systems and Wipro InfoTech with Wipro Ltd and besides the listing of WIPRO in New York Stock Exchange.

Serves as the CFO and Executive Director since April 2008 and served at assorted other places since April 1980.

SR.NO

Duration

Name OF THE DIRECTOR

Appellation

1

Since 1999

Dr. Ashok S. Ganguly

Chairman of Board Governance, Nomination and Compensation Committee

2

Since 1997

B. C. Prabhakar

Chairman of Administrative/shareholders and Investors Grudges

3

Since October 2009

Dr. Henning Kagermann

Member of Strategy Committee

4

Since October 2013

Ireena Mittal

Member of Audit/Risk and Compliance Committee

5

Since January 1999

Dr. Jagdish N. Sheth

Chairman of Academy of Indian Marketing Professionals

6

Since July 2011

M. K. Sharma

Member of Audit/Risk and Compliance Committee

7

Since June 1997

Narayan Vaghul

Chairman of Audit/Risk and Compliance Committee

8

Since October 2012

Vyomesh Joshi

Member of Strategy Committee

9

Since July 2010

Shyam Saran

Director

10

Since July 2006

William Arthur Owens

Member of Board Governance, Nomination and Compensation Committee

MANAGEMENT DISCUSSION AND ANALYSIS ( pg 24-40 )

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