Accounts ppt.pptxvsusbdhdudbdbdudhdbdheubeb

Hshshsh

1. Financial Analysis of Wipro Ltd. By :- Deepanshi Agarwal (MBA Business Analytics)

2. Profit & Loss A/c of Wipro Ltd.

3. Analysis of Profit&Loss Account Sales increase by 18.44% while expenses increase by 23.31% implies that company’s cash outflow is more than company’s cash inflow i.e., if company wants steady growth than it has to increase its revenue generation. Company’s manufacturing cost increases by 4%, indicates possibility that it has acquired new plant and machinery or it has entered into new product line because in balance sheet fixed assets also increases by 10% as well as depreciation also rises by 10.15%. Operating profit for previous year was Rs. 12,054 crores and in current year it is Rs. 12,411 crores, this indicates substantial growth i.e., improved operational efficiency. Sales to net profit for previous year was 20% and for current year it is 20.36%, implies that company maintains its net profit ratio around 20%. Interest expense reduced by Rs. 36 crores means that company had take any outside finances earlier which company has repaid.

4. Balance Sheet of Wipro Ltd.

5. Analysis of Balance Sheet Reserves have increased by Rs. 9.108 crores i.e., 21% increase, which reflects the increase in profits. It has made the financial position of the company strong. Increase in trade payables by 14% means that company purchased goods on credit, conserving its cash. As fixed assets increased by 10% from previous year, means that company has purchased new fixed assets such as land, building, plant & machinery etc. but analysis also shows decrease in vehicles i.e., company has sold vehicles of Rs. 20 crores. (25%) There is increase in investment of 58%, indicates possibility that company has made investment in any other company or government securities because cash and cash equivalent decreases by 50%. Company’s inventory decreases by 3%, this can be possible that company increases its sales in current year but increase in trade receivables by 16% indicate that company sold products during an accounting period for which it has not received payment.

6. EPS of previous year was Rs. 19.70 crores and in current year it is Rs. 22.31 crores. Shareholders have seen a positive impact with 13.25% increase in earning per share. Borrowings of Wipro Ltd. for previous year is Rs. 6,925 crores while in current year it is increased by Rs.1,879 crores i.e., 27%. The reason could be that company needs additional financing for the purpose of expansion. Sales to debtor ratio in previous year was 6.25 and this year it is 6.40 implies that company is efficient in the collection process and its credit policies are accurate.