3.

Significance ratios

Some ratios are important than others and the firm may classifythem as primary and
secondary ratios. The primary ratio is one, which is of the prime importance to a concern.
The other ratios that support the primaryratio are called secondary ratios.

In The View of Functional Classification the RatiosAre:

1. Liquidity ratio
2. Leverage ratio
3. Activity ratio
4. Profitability ratio

1. Liquidity Ratios
Liquidity refers to the ability of a concern to meet its currentobligations as & when
there becomes due. The short term obligations of afirm can be met only when there are
sufficient liquid assets. The short termobligations are met by realizing amounts from
current, floating (or)circulating assets The current assets should either be calculated liquid
(or)near liquidity. They should be convertible into cash for paying obligations of short term
nature. The sufficiency (or) insufficiency of current assets should be assessed by comparing
them with short-term current liabilities. If currentassets can pay off current liabilities, then
liquidity position will besatisfactory. To measure the liquidity of a firm the following ratios
can becalculated

 Current ratio
 Quick (or) Acid-test (or) Liquid ratio
 Absolute liquid ratio (or) Cash position ratio

(a) Current Ratio:

Current ratio may be defined as the relationship betweencurrent assets and current
liabilities. This ratio also known as Workingcapital ratio is a measure of general liquidity
and is most widely used tomake the analysis of a short-term financial position (or) liquidity
of a firm.

Current asset / Current liabilities

Page | 1
 Current Ratio =

(b) Quick Ratio

Quick ratio is a test of liquidity than the current ratio. The term liquidity refers to
the ability of a firm to pay its short-term obligations as &when they become due. Quick
ratio may be defined as the relationship between quick or liquid assets and current
liabilities. An asset is said to be liquid if it is converted into cash within a short period
without loss of value.
Quick or liquid asset / Current liabilities
Quick Ratio =

(c) Absolute Liquid Ratio

Although receivable, debtors and bills receivable are generallymore liquid than
inventories, yet there may be doubts regarding their realization into cash immediately or in
time. Hence, absolute liquid ratioshould also be calculated together with current ratio and
quick ratio so as toexclude even receivables from the current assets and find out the
absoluteliquid assets.

Absolute Liquid Ratio = Absolute liquid assets / Current liabilities

/ Current liabilities

Absolute liquid assets include cash in hand etc. The acceptable forms for this ratio
is 50% (or) 0.5:1 (or) 1:2 i.e., Rs.1 worth absolute liquid assets are considered to pay Rs.2
worth current liabilities in time as all thecreditors are nor accepted to demand cash at the
same time and then cashmay also be realized from debtors and inventories.

2. Leverage Ratios

The leverage or solvency ratio refers to the ability of a concern to meet its long term
obligations. Accordingly, long term solvency ratios indicate firm’s ability to meet the fixed
interest and costs and repayment schedules associated with its long term borrowings.

The following ratio serves the purpose of determining the solvency of the concern.

Page | 2
(a) Debt-to-equity ratio

Debt-to-equity ratio is the key financial ratio and is used as a standard for judging a
bank's financial standing. It is also a measure of a bank's ability to repay its obligations.
When examining the health of a bank, it is critical to pay attention to the debt/equity ratio.If
the ratio is increasing, the bank is being financed by creditors rather than from its own
financial sources which may be a dangerous trend. Lenders and investors usually prefer low
debt-to-equity ratios because their interests are better protected in the event of a business
decline. Thus, companies with high debt-to-equity ratios may not be able to attract
additional lending capital.

Debt-to-equity ratio = Long-time debt/ Shareholders fund

/ Current liabilities

(b) Fixed asset to long term funds ratio

A fixed asset to equity ratio measures the contribution of stockholders and the
contribution of debt sources in the fixed assets of the bank. It is computed by dividing the
fixed assets by the stockholders’ equity.

Other names of this ratio are fixed assets to net worth ratio and fixed assets to
proprietors fund ratio.

Fixed asset to long term

funds ratio = Fixed assets/ Long-terms funds
(c) Interest cover ratio
/ Current liabilities
The interest coverage ratio (ICR) is a measure of a bank's ability to meet its interest
payments. Interest coverage ratio is equal to earnings before interest and taxes (EBIT) for a
time period, often one year, divided by interest expenses for the same time period. The
interest coverage ratio is a measure of the number of times a bank could make the interest
payments on its debt with its EBIT. It determines how easily a bank can pay interest
expenses on outstanding debt.

Interest coverage ratio is also known as interest coverage, debt service ratio or debt
service coverage ratio.

Page | 3
 Interest cover ratio = PBIDT/ Interest

/ Current liabilities
(d) Debit service

amount of cash flow available to meet annual interest and principal payments on debt,
coverage ratio

In corporate finance, it is the including sinking fund payments.

In government finance, it is the amount of export earnings needed to meet annual

interest and principal payments on a country's external debts.

In personal finance, it is a ratio used by bank loan officers in determining income

property loans. This ratio should ideally be over 1. That would mean the property is
generating enough income to pay its debt obligations.

(PAT+Depreciation+ Interest
Debt service coverage ratio = Loan)/ (Interest on loan+ loan
repayment in a year)

3. Asset management Ratio

Asset management (turnover) ratios compare the assets of a bank to its sales
revenue. Asset management ratios indicate how successfully a bank is utilizing its assets to
generate revenues. Analysis of asset management ratios tells how efficiently and effectively
a bank is using its assets in the generation of revenues. They indicate the ability of a bank
to translate its assets into the sales. Asset management ratios are also known as asset
turnover ratios and asset efficiency ratios

4. Profitability Ratios

Profitability ratios measure a bank’s ability to generate earnings relative to sales,

assets and equity. These ratios assess the ability of a bank to generate earnings, profits and

Page | 4
cash flows relative to relative to some metric, often the amount of money invested. They
highlight how effectively the profitability of a bank is being managed.

(a) Net Profit margin

Net profit margin (or profit margin, net margin, return on revenue) is a ratio of
profitability calculated as after-tax net income (net profits) divided by sales (revenue). Net
profit margin is displayed as a percentage. It shows the amount of each sales dollar left over
after all expenses have been paid.

Net profit margin = (PBIT/ sales) *100

/ Current liabilities
(b) Return on capital employed

Return on capital employed (ROCE) is a measure of the returns that a business is

achieving from the capital employed, usually expressed in percentage terms. Capital
employed equals a bank's Equity plus Non-current liabilities (or Total Assets − Current
Liabilities), in other words all the long-term funds used by the bank. ROCE indicates the
efficiency and profitability of a bank's capital investments.

Return on capital Employed = (PBIT/ Capital employed) *100

(Or)
/ Current liabilities
PBIT/ Average net worth + loan funds

/ Current liabilities

Page | 5
 RESEARCH METHODOLOGY

4.1 Statement of Problem

The analysis of the financial statements i.e. income statement and the balance sheet
it is very difficult to analyze the complete picture of financial performance. Therefore there
is a need of applying the modern tools of management accounting to access the exact
financial performance and position of the business enterprise.

Accounting ratios are relationships expressed in mathematical terms between the

figures that are connected with each other in some manner. All companies whether big or
small will prefer to be in good financial position. The balance sheet of the bank that has
been undertaken for the study, furnishes that the bank is in good financial position. But the
exact worth of the financial position of the bank would be better understandable only if it is
subjected to analysis such as “Ratio Analysis in Axis bank

Hence the topic for the study is chosen as “Analysis of Financial Statement using
Ratio Analysis.”

4.2 Research Methodology

Research methodology is a way to systematically solve the research problem. It may

be understood as a science of studying how research is done scientifically. So, the research
methodology not only talks about the research methods but also considers the logic behind
the method used in the context of the research study.

Research Design

Descriptive research is used in this study because it will ensure the minimization of
bias and maximization of reliability of data collected. The researcher had to use fact and
information already available through financial statements of earlier years and analyze
these to make critical evaluation of the available material. Hence by making the type of the
research conducted to be both Descriptive and Analytical in nature.

From the study, the type of data to be collected and the procedure to be used for this
purpose were decided.

Page | 6
4.4 Data Collection

The required data for the study are basically secondary in nature and the data are
collected from the audited reports of the bank.

4.4.1. Primary Data

The primary data was collected mainly with the interactions and discussions with
the bank executives.

4.4.2. Secondary data

Most of the calculations are made on financial statements of the bank and the bank
provided financial statement of 5 years.

Some of the information regarding to the theoretical aspects were collected by

referring standards texts and through internet.

LIMITATIONS

Limitations of the Study

1. The study provides an insight into the financial, personnel, marketing and other
aspects of Axis bank . Every study will be bound with certain limitations.
2. The study is done only on the Balance sheet and profit and Loss A/c.
3. One of the factors of the study was lack of availability of sample information. Most
of the information has been kept confidential and as such as not assed as art of
policy of bank.
4. Time is an important limitation. The whole study was conducted in a period of 60
days, which is not sufficient to carry out proper interpretation and analysis.
5. Study is based on information provided by the bank.

Page | 7
Need For the Study

The financial parameters are the ultimate performance indicator of any bank. This is
because invariability all costs and efficiency activities and solvency position of the bank
will reflect the financial status of the bank. The following are stated to be in the need for
the study:

 To know the financial performance of Axis bank.

 To know the operating efficiency of the bank.
 To know liquidity position of the bank.
 To understand the movements of profits over a period of time.
 To know the reasons for the variation of profits.

In short, this study is conducted so that the financial performance evaluation will
serve as an eye opener to the bank.

Page | 8
 5. ANALYSIS AND INTERPRETATION

1. Current Ratio

2010-11 2011-12 2012-13 2013-14 2014-15

Particulars
(Rs in Lakhs) (Rs in Lakhs) (Rs in Lakhs) (Rs in Lakhs) (Rs in Lakhs)

CA & Loans and

advances 5699.28 9587.39 8711.54 7604.87 8138.7

CL& provisions 4973.51 4370.12 7811.18 12255.16 5674.04

Current Ratio 1.15 2.19 1.12 0.62 1.43

Interpretation

From above table the current ratio of a bank has a standard position only in the year
of 2012 to 2013, because as per rule, the current ratio of 2:1 (or) more indicates highly
solvent position of firm.

Page | 9
2. Quick Liquid/Acid Test Ratio

2010-11 2011-12 2012-13 2013-14 2014-15

Particulars
(Rs in Lakhs) (Rs in Lakhs) (Rs in Lakhs) (Rs in Lakhs) (Rs in Lakhs)
CA & loans and
advances minus
inventories 3727.56 7757.65 7100.4 5925.21 6618.12
CL & Provisions
minus Bank OD 4382.64 2735.56 7640.17 9214.9 5674.04
QL/ Acid Test
0.85 2.84 0.93 0.64 1.17
Ratio

Interpretation

From the above table the bank is having good liquidity position i.e.1.17 in the year
of 2014 to 2015. The quick ratio of 1:1 indicates satisfactory position of the firm.

Page | 10
3. Debt-Equity Ratio

2010-11 2011-12 2012-13 2013-14 2014-15

Particulars
(Rs in Lakhs) (Rs in Lakhs) (Rs in Lakhs) (Rs in Lakhs) (Rs in Lakhs)

Long time debt 166.9 500 166.9 289.83 1733.74

Share holders
fund 3707.84 2832.68 2849.88 2338.69 3184.15
Debt-Equity
0.045 0.177 0.059 0.124 0.544
Ratio

Interpretation

If the debt-equity ratio is greater than 1, then the bank assets are financed through
debt or if the ratio is less than 1, its assets are primarily financed through equity.

From the above table bank ratio is less than 1, from the year of 2011 to 2015. Hence
the bank assets are financed trough equity.

Page | 11
4. Interest Cover

2010-11 2011-12 2012-13 2013-14 2014-15

Particulars
(Rs in Lakhs) (Rs in Lakhs) (Rs in Lakhs) (Rs in Lakhs) (Rs in Lakhs)

PBIT 1772.58 334.09 1487.56 594.85 2516.04

Interest 286.9 428.1 704.44 734.97 637.54

Interest cover 6.18 0.78 2.11 0.81 3.95

Interpretation

In the years of 2010-11,2012-13,2014-15 the interest expenses has incurred by bank

is greater than the earnings that bank have had to pay, but compare to remaining years.
However the bank is easily able to meet the interest obligation from profits.

Page | 12
5. Debt Service Coverage Ratio

2010-11 2011-12 2012-13 2013-14 2014-15

Particulars
(Rs in Lakhs) (Rs in Lakhs) (Rs in Lakhs) (Rs in Lakhs) (Rs in Lakhs)

PAT plus Dep plus

interest on loan 1461.08 2017.11 2188.78 1688.94 2220.09
Interest on loan plus
loan repayment in a
year 357.05 7612.22 7082.81 4617.53 4333.54

DSCR 4.09 0.26 0.31 0.37 0.51

Interpretation

The debt service coverage ratio, as per rule 2 is a satisfactory, but if it is below 1
indicates a negative cash flow.

From above table the bank is negative cash flow except in the year 2010-11, when
compared to remaining years (i.e., 2011-12, 2013-14, 2014-15) because it is less than 1.

Page | 13
6. Net Profit Margin

2010-11 2011-12 2012-13 2013-14 2014-15

Particulars
(Rs in Lakhs) (Rs in Lakhs) (Rs in Lakhs) (Rs in Lakhs) (Rs in Lakhs)

PBIT 1239.65 362.83 604.04 163.19 2081.66

Sales 19104.87 19625.18 22356.35 24078.27 30664.18

NPM 6.49 1.85 2.70 0.68 6.79

Interpretation

From the above table the net profit margin is high in the year 2014-15, when
compared to previous years. So it’s shows that higher the margin is, the more effective the
bank is in converting revenue into actual profit.

Page | 14
7. Return on Capital Employed (ROCE)

2010-11 2011-12 2012-13 2013-14 2014-15

Particulars
(Rs in Lakhs) (Rs in Lakhs) (Rs in Lakhs) (Rs in Lakhs) (Rs in Lakhs)

PBIT 1239.65 362.83 604.04 163.19 2081.66

Average Networth
plus Loan Funds 6139.16 13470.29 8263.55 8483.255 8044.025

ROCE 20.19 2.69 7.31 1.92 25.88

Interpretation

The return on capital employed is greater or higher in the year of 2014-15, when
compared to previous years. Hence ROCE can indicate that a bank can reinvest a greater
portion of its profits back into its operations, to the benefit of shareholders. The re-invested
capital is, in turn, employed ata higher rate of return, which help sgenerate higher earnings
growth.

Page | 15
 ANNEXURE
Balance Sheet of Axis Bank ------------------- in Rs. Cr. -------------------
Mar '15 Mar '14 Mar '13 Mar '12 Mar '11

12 mths 12 mths 12 mths 12 mths 12 mths

Capital and Liabilities:

Total Share Capital 474.10 469.84 467.95 413.20 410.55
Equity Share Capital 474.10 469.84 467.95 413.20 410.55
Reserves 44,202.41 37,750.64 32,639.91 0.00 0.00
Net Worth 44,676.51 38,220.48 33,107.86 22,395.34 18,588.28
Deposits 322,441.94 280,944.56 252,613.59 22,808.54 18,998.83
Borrowings 79,758.27 50,290.94 43,951.10 220,104.30 189,237.80
Total Debt 402,200.21 331,235.50 296,564.69 34,071.67 26,267.88
Other Liabilities &
15,055.67 13,788.89 10,888.11 254,175.97 215,505.68
Provisions
Total Liabilities 461,932.39 383,244.87 340,560.66 8,643.28 8,208.86
Mar '15 Mar '14 Mar '13 285,627.79 242,713.37

12 mths 12 mths 12 mths 12 mths 12 mths

Assets
Cash & Balances with
19,818.84 17,041.32 14,792.09 10,702.92 13,886.16
RBI
Balance with Banks,
16,280.19 11,197.38 5,642.87 3,230.99 7,522.49
Money at Call
Advances 281,083.03 230,066.76 196,965.96 169,759.54 142,407.83
Investments 132,342.83 113,548.43 113,737.54 93,192.09 71,991.62
Gross Block 2,413.05 2,310.54 2,230.54 2,188.56 2,250.46
Net Block 2,413.05 2,310.54 2,230.54 0.00 0.00
Capital Work In Progress 101.26 99.67 125.11 2,188.56 2,250.46
Other Assets 9,893.19 8,980.79 7,066.56 70.77 22.69
Total Assets 461,932.39 383,244.89 340,560.67 6,482.93 4,632.12

Contingent Liabilities 640,183.59 611,446.37 576,010.77 514,871.98 477,864.55

Book Value (Rs) 188.47 813.47 707.50 3,230.99 7,522.49

Page | 16
Profit & Loss account of Axis Bank ------------------- in Rs. Cr. -------------------
Mar '15 Mar '14 Mar '13 Mar '13 Mar '13
12 mths 12 mths 12 mths 12 mths 12 mths

Income
Interest Earned 35,478.60 30,641.16 27,182.57 21,994.65 15,154.81
Other Income 8,365.05 7,405.22 6,551.11 5,420.22 4,632.13
Total Income 43,843.65 38,046.38 33,733.68 27,414.87 19,786.94
Expenditure
Interest expended 21,254.46 18,689.52 17,516.31 13,976.90 8,591.82
Employee Cost 3,114.97 2,601.35 2,376.98 2,080.17 1,613.90
Selling, Admin & Misc Expenses 11,710.72 10,173.91 8,309.22 6,773.35 5,903.14
Depreciation 405.67 363.93 351.73 342.24 289.59
Operating Expenses 9,203.74 7,900.77 6,914.23 6,007.10 4,779.43
Provisions & Contingencies 6,027.62 5,238.42 4,123.70 3,188.66 3,027.20
Total Expenses 36,485.82 31,828.71 28,554.24 23,172.66 16,398.45
Mar '15 Mar '14 Mar '13

12 mths 12 mths 12 mths

Net Profit for the Year 7,357.82 6,217.67 5,179.43 4,242.21 3,388.49
Profit brought forward 13,501.45 10,029.26 7,329.45 4,969.77 3,427.43
Total 20,859.27 16,246.93 12,508.88 9,211.98 6,815.92
Equity Dividend 1,087.54 939.69 843.86 658.24 573.00
Corporate Dividend Tax 221.42 161.44 143.37 111.83 97.35
Per share data (annualised)
Earning Per Share (Rs) 31.04 132.33 110.68 102.67 82.54
Equity Dividend (%) 230.00 200.00 180.00 160.00 140.00
Book Value (Rs) 188.47 813.47 707.50 551.99 462.77
Appropriations
Transfer to Statutory Reserves 1,926.82 1,644.36 1,492.38 1,112.46 836.95
Transfer to Other Reserves 0.00 -0.01 0.01 0.00 338.85
Proposed Dividend/Transfer to
1,308.96 1,101.13 987.23 770.07 670.35
Govt
Balance c/f to Balance Sheet 17,623.49 13,501.45 10,029.26 7,329.45 4,969.77
Total 20,859.27 16,246.93 12,508.88 9,211.98 6,815.92

Page | 17
Key Financial Ratios of Tata
Consultancy Services
Mar '18
Investment Valuation Ratios
Face Value 1.00
Dividend Per Share 50.00
Operating Profit Per Share (Rs) 145.25
Net Operating Profit Per Share (Rs) 508.58
Free Reserves Per Share (Rs) --
Bonus in Equity Capital 79.13
Profitability Ratios
Operating Profit Margin(%) 28.56
Profit Before Interest And Tax Margin(%) 25.35
Gross Profit Margin(%) 26.86
Cash Profit Margin(%) 26.06
Adjusted Cash Margin(%) 26.06
Net Profit Margin(%) 25.92
Adjusted Net Profit Margin(%) 24.46
Return On Capital Employed(%) 42.00
Return On Net Worth(%) 33.27
Adjusted Return on Net Worth(%) 33.27
Return on Assets Excluding Revaluations 396.31
Return on Assets Including Revaluations 396.31
Return on Long Term Funds(%) 42.10
Liquidity And Solvency Ratios
Current Ratio 2.85
Quick Ratio 2.67
Debt Equity Ratio --
Long Term Debt Equity Ratio --
Debt Coverage Ratios
Interest Cover 1,065.37
Total Debt to Owners Fund 0.00
Financial Charges Coverage Ratio 1,120.27
Financial Charges Coverage Ratio Post Tax 897.27
Management Efficiency Ratios
Inventory Turnover Ratio 3,894.24
Debtors Turnover Ratio 5.48

Page | 18
Investments Turnover Ratio 3,894.24
Fixed Assets Turnover Ratio 4.79
Total Assets Turnover Ratio 1.28
Asset Turnover Ratio 1.26
Average Raw Material Holding --
Average Finished Goods Held --
Number of Days In Working Capital 45.52
Profit & Loss Account Ratios
Material Cost Composition 0.08
Imported Composition of Raw Materials Consumed --
Selling Distribution Cost Composition --
Expenses as Composition of Total Sales 94.76
Cash Flow Indicator Ratios
Dividend Payout Ratio Net Profit 36.78
Dividend Payout Ratio Cash Profit 34.52
Earning Retention Ratio 63.22
Cash Earning Retention Ratio 65.48
AdjustedCash Flow Times 0.01

Page | 19
Balance Sheet of Tata Consultancy Services ------------------- in Rs. Cr. -------------------

Mar 18
12 mths
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 191.00
Total Share Capital 191.00
Reserves and Surplus 75,675.00
Total Reserves and Surplus 75,675.00
Total Shareholders Funds 75,866.00
NON-CURRENT LIABILITIES
Long Term Borrowings 39.00
Deferred Tax Liabilities [Net] 424.00
Other Long Term Liabilities 643.00
Long Term Provisions 26.00
Total Non-Current Liabilities 1,132.00
CURRENT LIABILITIES
Short Term Borrowings 181.00
Trade Payables 4,775.00
Other Current Liabilities 8,931.00
Short Term Provisions 171.00
Total Current Liabilities 14,058.00
Total Capital And Liabilities 91,056.00
ASSETS
NON-CURRENT ASSETS
Tangible Assets 9,430.00
Intangible Assets 10.00
Capital Work-In-Progress 1,238.00
Fixed Assets 10,678.00
Non-Current Investments 2,186.00
Deferred Tax Assets [Net] 3,051.00
Long Term Loans And Advances 1,503.00
Other Non-Current Assets 5,416.00
Total Non-Current Assets 22,834.00
CURRENT ASSETS
Current Investments 35,073.00
Inventories 25.00
Trade Receivables 18,882.00

Page | 20
Cash And Cash Equivalents 3,487.00
Short Term Loans And Advances 2,793.00
OtherCurrentAssets 7,962.00
Total Current Assets 68,222.00
Total Assets 91,056.00
OTHER ADDITIONAL INFORMATION
CONTINGENT LIABILITIES, COMMITMENTS
Contingent Liabilities 13,949.00
CIF VALUE OF IMPORTS
Raw Materials 0.00
Stores, Spares And Loose Tools 0.00
Trade/Other Goods 768.00
Capital Goods 0.00
EXPENDITURE IN FOREIGN EXCHANGE
Expenditure In Foreign Currency 33,014.00
REMITTANCES IN FOREIGN CURRENCIES FOR DIVIDENDS
Dividend Remittance In Foreign Currency -
EARNINGS IN FOREIGN EXCHANGE
FOB Value Of Goods -
Other Earnings 92,258.00
BONUS DETAILS
Bonus Equity Share Capital 151.15
NON-CURRENT INVESTMENTS
Non-Current Investments Quoted Market Value -
Non-Current Investments Unquoted Book Value 2,186.00
CURRENT INVESTMENTS
Current Investments Quoted Market Value 25,972.00
Current Investments Unquoted Book Value 9,101.00

Page | 21
Key Financial Ratios of Wipro
Mar '18
Investment Valuation Ratios
Face Value 2.00
Dividend Per Share 1.00
Operating Profit Per Share (Rs) 19.79
Net Operating Profit Per Share (Rs) 98.83
Free Reserves Per Share (Rs) --
Bonus in Equity Capital 97.88
Profitability Ratios
Operating Profit Margin(%) 20.02
Profit Before Interest And Tax Margin(%) 16.82
Gross Profit Margin(%) 17.75
Cash Profit Margin(%) 18.51
Adjusted Cash Margin(%) 18.51
Net Profit Margin(%) 17.27
Adjusted Net Profit Margin(%) 16.36
Return On Capital Employed(%) 22.17
Return On Net Worth(%) 18.27
Adjusted Return on Net Worth(%) 18.27
Return on Assets Excluding Revaluations 93.42
Return on Assets Including Revaluations 93.42
Return on Long Term Funds(%) 24.60
Liquidity And Solvency Ratios
Current Ratio 1.37
Quick Ratio 1.85
Debt Equity Ratio 0.11
Long Term Debt Equity Ratio --
Debt Coverage Ratios
Interest Cover 27.11
Total Debt to Owners Fund 0.11
Financial Charges Coverage Ratio 29.75
Financial Charges Coverage Ratio Post Tax 23.74
Management Efficiency Ratios
Inventory Turnover Ratio 151.92
Debtors Turnover Ratio 5.07
Page | 22
Investments Turnover Ratio 151.92
Fixed Assets Turnover Ratio 4.19
Total Assets Turnover Ratio 0.96
Asset Turnover Ratio 0.90
Average Raw Material Holding --
Average Finished Goods Held --
Number of Days In Working Capital 3.87
Profit & Loss Account Ratios
Material Cost Composition 3.28
Imported Composition of Raw Materials Consumed --
Selling Distribution Cost Composition 0.58
Expenses as Composition of Total Sales 87.63
Cash Flow Indicator Ratios
Dividend Payout Ratio Net Profit 5.85
Dividend Payout Ratio Cash Profit 5.17
Earning Retention Ratio 94.15
Cash Earning Retention Ratio 94.83
Adjusted Cash Flow Times 0.54

Page | 23
Balance Sheet of Wipro ------------------- in Rs. Cr. -------------------
Mar 18
12 mths
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 904.80
Total Share Capital 904.80
Reserves and Surplus 41,357.80
Total Reserves and Surplus 41,357.80
Total Shareholders Funds 42,262.60
NON-CURRENT LIABILITIES
Long Term Borrowings 72.40
Deferred Tax Liabilities [Net] 46.30
Other Long Term Liabilities 1,085.30
Long Term Provisions 168.80
Total Non-Current Liabilities 1,372.80
CURRENT LIABILITIES
Short Term Borrowings 4,647.70
Trade Payables 4,176.20
Other Current Liabilities 5,418.60
Short Term Provisions 793.40
Total Current Liabilities 15,035.90
Total Capital And Liabilities 58,671.30
ASSETS
NON-CURRENT ASSETS
Tangible Assets 3,802.60
Intangible Assets 564.40
Capital Work-In-Progress 1,290.60
Fixed Assets 5,657.60
Non-Current Investments 5,841.60
Deferred Tax Assets [Net] 452.00
Long Term Loans And Advances 0.00
Other Non-Current Assets 3,752.80
Total Non-Current Assets 15,704.00
CURRENT ASSETS
Current Investments 24,841.20
Page | 24
Inventories 294.30
Trade Receivables 9,502.00
Cash And Cash Equivalents 2,322.00
Short Term Loans And Advances 0.00
OtherCurrentAssets 6,007.80
Total Current Assets 42,922.20
Total Assets 58,671.30
OTHER ADDITIONAL INFORMATION
CONTINGENT LIABILITIES, COMMITMENTS
Contingent Liabilities 16,696.10
CIF VALUE OF IMPORTS
Raw Materials 0.00
Stores, Spares And Loose Tools 0.00
Capital Goods 0.00
EXPENDITURE IN FOREIGN EXCHANGE
Expenditure In Foreign Currency 20,783.10
REMITTANCES IN FOREIGN CURRENCIES FOR DIVIDENDS
Dividend Remittance In Foreign Currency -
EARNINGS IN FOREIGN EXCHANGE
FOB Value Of Goods 39,180.70
Other Earnings -
BONUS DETAILS
Bonus Equity Share Capital 885.67
NON-CURRENT INVESTMENTS
Non-Current Investments Quoted Market Value -
Non-Current Investments Unquoted Book Value 5,841.60
CURRENT INVESTMENTS
Current Investments Quoted Market Value 15,289.10
Current Investments Unquoted Book Value 9,552.10

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