Accounting and Financial Management

Assignment

On

Balance Sheet interpretation of Wipro ltd.

Submitted by:

Name: Sunaina A M
USN: 01FE16BCS209
Branch: CSE
Balance Sheet of Wipro company:
Source: https://issuu.com/sanjaykumarguptaa/docs/a-project-report-on-financial-analysis-of-
wipro
Note: Interpretation has been done for the years 2007 and 2008
only.
Note 1: Share Capital
In millions of euros Dec 2007 Dec 2008
Share Capital 207.3 100.1
Share application money 144.171
pending allotment

The company’s share capital decreased from the year 2017 to 2018.
To overcome that, the company has issued new shares in the year
2018. As a result, number of shares are increased and these funds
are implemented for the future plans of the company.
Note 2: Reserves and Surplus
In millions of euros Dec 2007 Dec 2008
Reserves and surplus 180.99 322.5

Reserves and surplus show a remarkable increase from year 2017 to

2018. This shows that the company has future vision and would like
to expand its business. The company is target oriented and sticking
to its policies and as a result the overall share holder’s fund is
increasing every year.

Note 3: Non-Current Liabilities

Current Liabilities:
Note 4: Short term borrowings
Note 5: Other current liabilities
In millions of euros Dec 2007 Dec 2008
Total Current liabilities 102.8 172.9

Current Liabilities is increasing, it means the company has to develop

business and purchase raw material on credit basis.
Note 6: Short term provisions
In millions of euros Dec 2007 Dec 2008
Provisions 63.3 180.0

Provisions increased from the year 2017 to 2018, it was mainly due
to the increase in the pensions and similar obligations that took place
in the company.
Note 7: Fixed Assets
In millions of euros Dec 2007 Dec 2008
Goodwill 268.6 445.3
Gross Block 142.19 159.4
Less:
Net block 153.66 154.22
Capital work in progress and 163.05 131.194
advances
Total fixed assets 175.8 220.72
Fixed assets have increased in the current year which is good for the
company. It seems the company has good future plans and they
want to expand their business so they have invested more and more
funds in fixed assets. Fixed assets are used efficiently by the
company due to which the profit of the company is increasing the
next year. The company also has huge increase in its lands, patents,
trademarks and rights.
Note 8: Trade receivables
In millions of euros Dec 2007 Dec 2008
Sundry Debtors 130.0 138.3

Sundry debtors increase by 8% which means the company has to

recover it to avoid loss in the year 2019.
Note 9: Cash and cash equivalents
In millions of euros Dec 2007 Dec 2008
Cash and Bank balance 63.3 180.0

Increase in company’s bank balance shows the stability of the

company’s profit in the year 17-18.
Note 10: Short term loans and advances
In millions of euros Dec 2007 Dec 2008
Loan and advances 63.3 180.0
Current assets loan increases from the year 17 to 18. Positive note
for the company.
Note 11: Employee benefit expense
In millions of euros Dec 2007 Dec 2008
Administrative expenses 124.8 136.88

There’s increase in the employee benefit expense because of hike in

the salaries of the employees working at Wipro. It is also due to the
additional compensation given to the employees and the workers.
Note 12: Finance costs
In millions of euros Dec 2007 Dec 2008
Interest 137.58 149

Interest on loans increased as a result of increase in the company’s

production targets for the year 2018.
Note 13: Depreciation and Amortization
In millions of euros Dec 2007 Dec 2008
Accumulated depreciation 147.0 147.8

Depreciation didn’t show a larger increase in the year 2018, hence it

is good for the company.
Note 14: Other expenses
-