Wipro Limited Together With Its Subsidiaries and Equity Accounted Investees

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Wipro Limited together with its subsidiaries and equity

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Wipro Limited, together with its subsidiaries and equity accounted investees (collectively,
‘Wipro’) is a leading India-based provider of IT Services, including Business Process
Outsourcing (‘BPO’) services, globally. Further, Wipro has other businesses such as IT
Products, Consumer Care and Lighting and Infrastructure engineering. Wipro shares are listed
on the Bombay Stock Exchange and National Stock Exchange of India. The Company’s
American Depository Shares representing equity shares are also listed on the New York Stock
Exchange. We provide below the consolidated income statements for the financial years ended
31 March 2010, 2011 and 2012 (source: Form 20F 2012). The 2009 Form 20F shows that
revenue for that year was 256,891 million Rupees. The consolidated financial statements of the
group have been prepared in accordance with IFRS. The income statement is presented by
function. However, in the Notes to the financial statements, the group publishes a breakdown by
nature of expenses (Total cost of revenues, selling and marketing expenses and general and
administrative expenses), see below. Required1. Prepare the common-size income statements
by function.2. With the help of Note 22, restate the income statement and prepare the statement
of intermediate balances, in value and in percentage of sales.3. Analyze the income statement
on the basis of the format by function.4. Analyze the income statement on the basis of the
format by nature (statement of intermediate balances).5. What are the comparative benefits of
each analysis for a decision maker? Assume you are an investor looking to invest in Wipro.View
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Wipro Limited together with its subsidiaries and equity accounted investees

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