Analysis of Top 3 IT Companies in India

A
PROJECT REPORT
ON
ANALYSIS OF IT INDUSTRY
BY
HITESH GUPTA (08)
NEHA MALI (18)
SHAILESH GAWANDE (70)
VRUSHALI BORSE (46)
NIKHIL KASHMIRE (19)
KIRAN WAGHMARE (59)
SONALI BADOLE (71)
SUBMITTED TO
SAVITRIBAI PHULE PUNE UNIVERSITY
IN PARTIAL FULFILMENT OF THE REQUIRMENT FOR ELECTIVE
INDUSTRY ANALYSIS AND DESK RESEARCH
IN
MASTER OF BUSINESS ADMINISTRATION (MBA)
UNDER THE GUIDANCE OF
DR. DIVYA LAKHANI
THROUGH
DR.VIKHE PATIL FOUNDATION’S
PRAVARA CENTRE FOR MANAGEMENT AND RESEARCH
DEVELOPMENT PUNE- 411016
MARCH 2017

I
ACKNOWLEDGEMENT
It was great pleasure to do this project of Industrial Analysis & Desk Research Project
on “ANALYSIS OF IT INDUSTRY” as this project leads me to learn many things. I would
love to say few words.
We are extremely grateful and remain indebted to our guide Dr. Divya Lakhani for
being a source of inspiration and or his constant support and guide in the design
implementation and evaluation of the project. We are thankful to them for their constant
constructive criticism and invaluable suggestions which benefited us a lot while developing
the project.
She has been a constant source of inspiration and motivation for hard work. She is
very co-operative and thoughtful this project work. Through this column, it would be our
almost pleasure to express our warm thanks to her for their encouragement, co-operative and
consent without which we might be able to accomplish this project.
We also express our gratitude to all staff members, friends who were directly &
indirectly instrument in enabling us to stay committed for the project.
We are also thankful to our Director Dr. Manoj Narwade who supports and give
motivation for the project.

II
DECLARATION
We hereby declare that the project titled “ANALYSIS OF IT INDUSTRY” is an original
piece of research work carried out by us under the guidance of Dr. Divya Lakhani. The
information has been collected from genuine and authentic sources. The work has been
submitted in partial fulfilment of the requirement of the elective ‘Industry Analysis and
Desk Research of Master of Business Administration to Savitribai Phule Pune
University.
Sr. No Name of Student Signature
1 Hitesh Gupta
2 Neha Mali
3 Shailesh Gawande
4 Vrushali Borase
5 Nikhil Kashmire
6 Kiran Waghmare
7 Sonali Badole
Date: 24th
March 2017
Place: Pune

III
INDEX
Chapter No. Description Page No.
Title Page
Acknowledgement I
Declaration II
Index III
List of Table IV
List of Figures V
Chapter 1 INTRODUCTION
1.1 Industry Analysis 2
1.2 Policies 8
Chapter 2 PROMOTERS AND MANAGEMENT ETHOS
2.1 Corporate DNA 13
2.2 Management Team & their Contribution to the Organization 14
2.3 Corporate Governance 20
2.4 Corporate Social Responsibility (CSR) Initiatives 25
Chapter 3 EXTERNAL ENVIRONMENT
3.1 Governing Body - Controlling Ministry/Regulator 34
3.2 Measures taken by Governing Body to streamline business
practices
36
3.3 Issues affecting IT industry. 37
Chapter 4 FINANCIALS
4.1 Short Term Ratios 39
4.2 Long Term Ratios 40
4.3 Profitability Ratios 41
4.4 Over all rank of Companies. 44
Chapter 5 RECENT DEVELOPMENTS
5.1 Expansion of IT sector in Global Market. 47
5.2 Technological Advancements 48
5.3 Awards & recognitions 50
Appendix Bibliography 53

IV
LIST OF TABLES
Table No. Description Page No.
1.1. SWOT Analysis 7
2.1 WIPRO - List of Board Members 15
2.2 INFOSYS- List of Board Members 17
2.3 TCS - List of Board Members 19
2.4 WIPRO- Objectives of Committee 20
2.5 INFOSYS - Objectives of Committee 22
2.6 TCS -Objectives of Committee 24
4.1.1. Liquid Ratio 39
4.2.1. Fixed Asset Turnover Year Ratio 40
4.2.2. Proprietary Year Ratio 41
4.2.3. Debt-Equity Year Ratio 41
4.3.1 Gross Profit Year Ratio 42
4.3.2 Net Profit Year Ratio 42
4.3.3. Earnings Per Share Year Ratio 43

V
LIST OF FIGURES
Figure No. Description Page No.
1.1 Segment- wise Market Share 6
4.1.1. Liquid Ratio/Current Ratio 39
4.2.1. Fixed Asset Turnover Ratio 40
4.2.2. Proprietary Ratio 41
4.3.1. Gross Profit Ratio 42
4.3.2. Net Profit Ratio 43
4.3.3. Earnings Per Share (EPS) 43
5.1. Growth in Total Subscribers 47

2
Chapter:-1
1. Introduction
1.1 Industry Analysis.
India is the world's largest sourcing destination for the information technology (IT) industry,
accounting for approximately 67 per cent of the US$ 124-130 billion market. The industry
employs about 10 million workforces. More importantly, the industry has led the economic
transformation of the country and altered the perception of India in the global economy. India's
cost competitiveness in providing IT services, which is approximately 3-4 times cheaper than the
US, continues to be the mainstay of its Unique Selling Proposition (USP) in the global sourcing
market. However, India is also gaining prominence in terms of intellectual capital with several
global IT firms setting up their innovation centre in India. Information technology in India is an
industry consisting of two major components- IT Services and business process
outsourcing (BPO).
The major cities that account for about nearly 90% of that sector’s exports are Bengaluru
(Bangalore), Pune, Mumbai, Noida, Chennai, Kolkata, Trivandrum, Hyderabad, Jammu &
Kashmir. Bengaluru is considered to be Silicon Valley of India because it is the leading IT
exporter. Exports dominate the industry and constitute about 77% of the total industry revenue.
However, the domestic market is also significant with a robust revenue growth. The industry’s
share of total Indian exports (merchandise plus services) increased from less than 4% in FY1998
to about 25% in FY2012. According to Gartner, the “Top Five Indian IT Services Providers” are
Tata Consultancy services, Infosys, Cognizant, Wipro and HCL Technologies.
The IT industry has also created significant demand in the Indian education sector, especially
for engineering and computer science. The Indian IT and ITeS industry is divided into four
major segments – IT services, Business Process Management (BPM), software products and
engineering services, and hardware.

3
Source
India is the world's largest sourcing destination for the information Technology. We select
these three industry from www.nasscom.in whose work is to controlling & governing the IT
industries.
Top three industries are :-
1. WIPRO Limited (Western India Palm Refined Oils Limited)
2.INFOSYS
3. TCS {Tata Consultancy Services}
1.1.1 Emerging First Generation Entrepreneurs and their impact:-
1. WIPRO Limited
(Western India Palm Refined Oils Limited)
Azim Hashim Premji (born 24 July 1945) is an Indian business tycoon, investor,
and philanthropist. who is the chairman of Wipro Limited. He is informally known as the Czar
of the Indian IT Industry.
Azim Premji later diversified the company to bakery fats, ethnic ingredient based toiletries,
hair care soaps, baby toiletries, lighting products, and hydraulic cylinders. In the 1980s, the
young entrepreneur, recognizing the importance of the emerging IT field, took advantage of the
vacuum left behind by the expulsion of IBM from India, changed the company name
to Wipro and entered the high-technology sector by manufacturing minicomputers under
technological collaboration with an American company Sentinel Computer
Corporation. Thereafter Premji made a focused shift from soaps to software.

4
2. INFOSYS
Nagavara Ramarao Narayana Murthy (born 20 August 1946), commonly referred to
as Narayana Murthy, is an Indian IT industrialist and the co-founder of Infosys, a multinational
corporation providing business consulting, technology, engineering, and outsourcing
services. Murthy started his career at IIM Ahmedabad as chief systems programmer. There he
worked on India's first time-sharing computer system and designed and implemented a BASIC
interpreter for Electronics Corporation of India Limited. He started a company named
Softronics. Murthy and six software professionals founded Infosys in 1981 with an initial
capital injection of Rs 10,000, which was provided by his wife Sudha Murthy. At Infosys he
articulated, designed and implemented the Global Delivery Model for IT services outsourcing
from India. He was chairman of the board from 2002 to 2006, after which he became chairman
of the board and Chief Mentor. In August 2011, he retired from the company, taking the title
chairman Emeritus
3. TCS {Tata Consultancy Services}
Jehangir Ratanji Dadabhoy "J. R. D." Tata (29 July 1904 – 29 November 1993) was a French-
born Indian aviator, entrepreneur, chairman of Tata Group and the shareholder of Tata
Sons. He is best known for being the founder of several industries under the Tata Group,
include He was also a founding member of the first Governing Body of NCAER, the National
Council of Applied Economic Research in New Delhi, India's first independent economic
policy institute established in 1956. In 1968, he founded Tata Consultancy Services as Tata
Computer Centre. In 1979, Tata Steel instituted a new practice: a worker being deemed to be
"at work" from the moment he leaves home for work till he returns home from work. This
made the company financially liable to the worker for any mishap on the way to and from
work. In 1987, he founded Titan Industries. Jamshedpur was also selected as a UN Global
Compact City because of the quality of life, conditions of sanitation, roads and welfare that
were offered by Tata Steel.ing Tata Consultancy Services, Tata Motors, Titan Industries, Tata
Tea, Voltas and Air India. In 1945, he founded Tata Motors. In 1948, JRD Tata launched Air
India International as India's first international airline. In 1953, the Indian Government
appointed JRD Tata as Chairman of Air India and a director on the Board of Indian Airlines – a
position he retained for 25 years. For his crowning achievements in aviation, he was bestowed
with the title of Honorary Air Commodore of India.

5
1.1.2 Business Type
The IT industry business can be classified into 3 major type hardware industry, software
industry and finally service industry.
 Hardware Industry
Hardware industry is majorly dominated by various hardware vendors such as IBM, HP, and
Oracle (Sun). Software industry is dominated by the likes of Microsoft, Google, and Oracle.
Service Industry is a conglomerate between hardware and software industry, it not only caters to
the hardware demand of the customer, but also to the various software customization demands of
the customer.
Traditionally IBM has been the blue giant, has the biggest range of products in the hardware
server space, quite lately it was also major in the desktop space which it had earlier sold to
Lenovo. HP and Oracle are the other key giants that are on headlock with IBM with respect to
enterprise server space.
 Software Industry
Microsoft along with Oracle are the software giant with presence not only in terms of enterprise
software but as well end user (desktop) software. It’s estimated that Microsoft has about 80%
presence in enterprise software.
 Service Industry
In IT services, IBM is the giant that dwarfs all other players. It is followed by Fujitsu, Accenture,
HP and NTT. The major Indian IT organizations such as TCS, Infosys, Wipro and Cognizant
appear in this industry. However there is a small exception that HCL has a bit of presence in
hardware industry, although not individually.
1.1.3 Types of Market in IT Industry.
India’s IT industry can be divided into six main components, viz. Software Products, IT
services, Engineering and R&D services, ITES/BPO (IT-enabled services/Business Process
Outsourcing), Hardware, and e-commerce. Export revenues continue to drive growth with IT
Services. Increasing competition, pressure on billing rates of traditional services and increasing
commoditization of lower-end services are among the key reasons forcing the Indian software
industry to make a fast move up in the software value chain. The new digital technologies like

6
social media, mobility, analytics, and cloud computing (SMAC) will permanently change the
way Indian IT firms do business.
Figure 1.1 Segment- wise Market Share
1.1.4 Market Prospects in IT Industry.
Market Size
The Indian IT sector is expected to grow at a rate of 12%-14% for FY2016-17 in constant
currency terms. The sector is also expected triple its current annual revenue to reach US$ 350
billion by FY 2025#.
India ranks third among global start-up ecosystems with more than 4,200 start-ups##.
India’s internet economy is expected to touch Rs 10 trillion (US$ 146.72 billion) by 2018,
accounting for 5 % of the country’s GDP###. India’s internet user base reached over 400 million
by May 2016, the third largest in the world, while the number of social media users grew to 143
million by April 2015 and smart phones grew to 160 million.
Public cloud services revenue in India is expected to reach US$ 1.26 billion in 2016, growing by
30.4 % year-on-year . The public cloud market alone in the country was estimated to treble to
US$ 1.9 billion by 2018 from US$ 638 million in 2014. Increased penetration of internet
(including in rural areas) and rapid emergence of e-commerce are the main drivers for continued
growth of data centre co-location and hosting market in India. The Indian Healthcare Information
Technology (IT) market is valued at US$ 1 billion currently and is expected to grow 1.5 times by
2020^^. India's business to business (B2B) e-commerce market is expected to reach US$ 700

7
billion by 2020 whereas the business to consumer (B2C) e-commerce market is expected to
reach US$ 102 billion by 2020.
1.1.5 SWOT Analysis of IT Industry.
Table No. 1.1 SWOT Analysis
Strengths Weaknesses Opportunities Threats
Highly skilled,
English-speaking
workforce.
Rise in the level of
attrition rates
among IT and
ITES workers.
To work closely
with association
like nasscom
Workers in British
Telecom have
protested against
outsourcing of
work to Indian
BPO companies.
Round-the-clock
advantage for
Western
companies due to
the huge time
difference.
The cost of telecom
and network
infrastructure is
much higher in
India than in the
US.
Indian ITES
companies should
work closely with
Western
governments and
assuage their
concerns and
issues.
Other ITES
destinations such
as China,
Philippines and
South Africa could
have an edge on
the cost factor.
Cheaper workforce
than their Western
counterparts.
According to
Nasscom, The
wage difference is
as high as 70-80 %
when compared to
their Western
counterparts.
Manpower
shortage
India can be
branded as a
quality ITES
destination rather
than a low-cost
destination.
The anti-
outsourcing
legislation in the
US state of New
Jersey. Three more
states in the United
States are planning
legislation against
outsourcing
Connecticut,
Missouri and
Wisconsin.
Lower attrition Marketing $69 billion ITES Slowdown of

8
rates than in the
West
problem business by 2010 demand.
Dedicated
workforce aiming
at making a long-
term career in the
field.
Cultural difference Market potential
Abundant
manpower
Legal lacuna
Lower response
time with efficient
and effective
service
Local
infrastructure
Operational
excellence
Political opposition
from developed
countries
Conducive
business
environment
1.2 Policies.
1.2.1 Branding of the product:
1. Wipro
The first major focus on Wipro as a brand came about in the late 1990s. The focus was on
Building brand awareness and building a quality and leadership positioning. Since the
Beginning, the challenge had always been to build a brand that would compete with
Accenture or IBM but with a fraction of their marketing budget.
Shining Strategic Design (SSD), a France based consulting firm was brought on board for a
Complete brand makeover. Research commissioned by SSD revealed, “Wipro has diligent,
Hardworking and sincere employees. But end-users felt Wipro had unfocussed multifaceted
Businesses. Wipro was seen as very cold and process-oriented, yet Wipro delivered on its
Commitment.”

9
SSD identified four values that provided the most important benefits to end-users: human
Values, integrity, innovative solutions, and value for money.
To strategically innovate, it is more important than ever to driving growth. This commitment to
innovation will impact how companies approach environmentally friendly, or green, business
practices, as well as how they manage their expansion into global emerging markets.
Innovation as a way to differentiate businesses. Fully two thirds of the Wipro executives believe
that innovation is more critical than ever because of the economic downturn of 2008-09.
To ensure that speed-to-market is necessary for successful innovation.
To ensure that cost remains low as it is the biggest hurdle to fostering innovation. It topped the
list of innovation barriers cited by C-level executives, followed by issues related to the
regulatory environment, and finding and retaining top talent.
2. Infosys
About the branding policies of Infosys, basically they focused on social media strategy
development; creating a rigorous media strategy is necessary to ensure customer consistent
experiences, reliable content creation, data governance and regulatory compliances.
To ensure that the company not merely provides software services and solutions, but also does a
lot of transformational projects. Along with the IT services it will also work with the business
side of clients.
It aims to transform into a business solutions provider.
To focus on several new solutions, like cloud computing, Enterprise Mobility and Sustainability,
based on current market needs.
It has consolidated its verticals into four: Financial Services & Insurance; Manufacturing;
Energy, Utilities, Communications and Services; and Retail, Logistics and Life Science.
It also has another vertical, Infosys Public Service subsidiary, which will essentially scout for US
government public service work.
It has grouped its offerings into three groups: Business Transformation (consulting work,
systems integration, enterprise solutions etc.); Business Operations (application development,
maintenance, infrastructure management etc.); Business Innovation (products, platforms and
solutions). These will be there focus areas going forth.

10
3. TCS
There are various strategies of branding used by the TCS in the today’s business environment
and basically this are:
1. Cost based pricing strategy
2. Geographical strategy
3. Value based pricing strategy
4. If necessary then penetration strategy also.
To create value by leveraging our co-innovation network in a manner that has an impact on the
customer’s ecosystem.
To be among the top 3 companies worldwide, to build culture of accountability, delivering
certainty to customers.
Assimilate values – integrity, leading change, excellence, respect for the individual, and fostering
an environment of learning and sharing.
Customer-centric Engagement Model: Their deep-set commitment to customers defines how
they do business, and their years of experience working across industries underpin the vast array
of services they offer. They build their teams around customer’s domain and technology
requirements, offering specialized services and solutions that meet the distinct needs of
customer’s business.
Global Network Delivery Model (GNDM™): Their unique global engagement model allows
them to choose the sourcing strategy best suited to customer’s business needs. They take a
follow-the-sun approach, meaning that no matter where customer’s business is located, they help
you keep it running 24/7, while providing a seamless experience across all operations.
Full Services Portfolio: Their full services portfolio combines traditional IT and Remote
Infrastructure services with knowledge-based services such as Consulting and Business Process
Outsourcing. This enables them to provide integrated solutions that help customer recognize
value quickly by reducing costs and improving business agility.
Innovation Labs and Co-innovation Network (COIN™): They help customer achieve and
maintain a competitive advantage through their TCS Innovation Labs and Co-innovation
Network. They offer research-based solutions in advanced technologies that help support
customer’s business objectives.

11
1.2.2 Pricing Policies:-
Since the IT industry is highly volatile, pricing strategies are closely held secret and aren’t
disclosed by the IT companies. It’s a common norm in IT industry to charge different customer
both based on geography or financial strength differently and hence pricing is not publically
disclosed.
The pricing that is disclosed, if available on the website, is very rarely followed and final pricing
varies after sales negotiations have been finalized.

12
Chapter-2
PROMOTERS AND
MANAGEMENT ETHOS.

13
Chapter:-2
2.1 Corporate DNA.
Corporate culture refers to the beliefs and behaviors that determine how a company's employees
and management interact and handle outside business transactions. Often, corporate culture is
implied, not expressly defined, and develops organically over time from the cumulative traits of
the people the company hires. A company's culture will be reflected in its dress code, business
hours, office setup, employee benefits, turnover, hiring decisions, treatment of clients, client
satisfaction and every other aspect of operations.
1. WIPRO
* Culture:-
The Spirit of Wipro is rooted in current reality and yet, it is representative of what Wipro aspires
to be. It is an indivisible synthesis of what we are and what we want to be - manifesting itself in
the intensity to win, the sincerity to act with sensitivity and the desire to uphold integrity at all
times.
Our culture is the foundation of our success and it is completely people oriented, touching lives
and making a difference to employees, stakeholders, customers and partners alike. We believe
that excellence is not a destination but a journey of continuous improvement and we keenly
promote an open culture, encouraging feedback, and actively transforming it into action.
A finely articulated code of Business Conduct helps us achieve the highest levels of transparency
and propriety, thus strengthening the foundations of our business.
2. Infosys.
* Culture:-
To surpass client expectations consistently. To be objective and transaction-oriented, and
thereby earn trust and respect. While it is often believed that innovation occurs in spontaneous
and unplanned aha! Moments , the truth is innovation is a force of habit. We need to train
ourselves to think constantly, approaching old problems in new ways, and recognizing gaps that
may not always be apparent. At Infosys, innovation is everybody's job.

14
Our grassroots approach to innovation means it encourages everyone to stay focused on it all the
time, rather than in between things. In fact, it is this unique approach to innovation that has made
problem finding and solving second nature to us and has helped us set ourselves apart in the
industry.
To be ethical and sincere in all our transactions.
To strive relentlessly; constantly improve ourselves, our teams, and our services and products to
become the best.
3. TCS
* Culture:-
Just as an organization needs the right talent to drive its business objectives, people need the
right environment to grow and achieve their career goals. The moment the employee steps into
TCS, he/she would be greeted with that unmistakable feeling of being at the right place. Along
with that, working with TCS affords with a sense of certainty of a successful career that would
be driven by boundless growth opportunities and exposure to cutting-edge technologies and
learning possibilities. The work environment at TCS is built around the belief of growth beyond
boundaries. Some of the critical elements that define the work culture are global exposure, cross-
domain experience, and work-life balance. Each of these elements goes much deeper than what it
ostensibly conveys.Our corporate culture is open and inclusive; irrespective of your experience,
you will immediately be welcomed into the team, and would always have a significant role to
play.
2.2 Promoters and Management teams
The term is also used to describe the set of architectural and spatial characteristics considered by
the inhabitants of a city to be constituents of that city's identity. This may include "materials and
colours, a typical arrangement of scale and architectural forms, building lot size, roof lines, scale
of public and semi-public spaces" which should be respected by new buildings and urban spaces
in the city.[21]
In an article in Fast Company, Kelli Richards claims that the organizational culture
at Apple Inc. in the 1990s has become part of the DNA of Silicon Valley.

15
1. Wipro
2.2.1 Promoters.
Mr Azim Hasham Premji Partner Representing Hasham Trader
Azim H Premji
Yasmeen H Premji
RishadAzimPremji
Mr Azim Hasham Premji Partner Representing Zash Traders
Mr Azim Hasham Premji Partner Representing Prazim Traders
Hasham Investment and Trading Co. Pvt Ltd
Tariq Azim Premji
Azim Premj Philanthropic Initiatives Private Limited.
2.2.2 Board of Directors
Table No.: 2.1 List of Board Members
Board Members Designation
Azim H. Premji Chairman
T K Kurien Executive Vice-Chairman
Abidali Z. Neemuchwala CEO & Member of the Board
Rishad Premji
Chief Strategy Officer Member of the Board
Dr. Ashok S. Ganguly Independent Director
IreenaVittal Independent Director
M.K.Sharma Independent Director
Narayanan Vaghul Independent Director

16
There are 11 Directors out of which 7 are independent Directors.
2.2.3. CEO/CMD of WIPRO
Our Chairman Azim H. Premji, Sr. executives of Wipro who are global leader and visionary ,
form the Wipro Board of Directors which provides direction and guidance to the organization
Azim H. Premji
{Chief Executive Officer}
Infosys:-
2.2.1 Promoters
N. R. Narayana Murthy
SudhaMurty
AkshataMurty
Rohan Murty
Nandan M. Nilekani
RohiniNilekani
JahnaviNilekani
NiharNilekani
Patrick Dupuis Independent Director
Dr. Patrick J. Ennis
Independent Director
William Arthur Owens Independent Director

17
S. Gopalakrishnan
SudhaGopalakrishnan
MeghanaGopalakrishnan
K. Dinesh
Asha Dinesh
Divya Dinesh
Deeksha Dinesh
S. D. Shibulal
KumariShibul.
2.2.2 Board of Directors
Table No.: 2.2 List Of Board Members
There are 9 directors out of which 7 are independent directors.
Board of Directors. Designation
Dr.VishalSikka CEO/CMD of INFOSYS.
R. Seshasayee Chairman of the Board and
Independent Director
KiranMazumdar-Shaw Independent Director
U. B. Pravin Rao Chief Operating Officer &Whole-time Director
RoopaKudva Independent Director
Ravi Venkatesan Independent Director
Dr. Punita Kumar-Sinha Independent Director
Prof. Jeffrey S. Lehman Independent Director
Prof. John W. Etchemendy Independent Director

18
2.2.2 CEO/CMD of INFOSYS.
Dr. Vishal Sikka{Chief Executive Officer}
Dr. Vishal Sikka is Chief Executive Officer of Infosys.
Dr. Sikka joined Infosys in 2014 to help transform the company during a time of significant
change in the services industry, change that was brought on by the cost imperatives of clients on
the one hand, and significant and rapid advancements in technology on the other hand. Since
joining Infosys, Dr. Sikka has implemented a strategy of helping clients renew their existing
landscapes to fundamentally drive down costs using automation and artificial intelligence, and at
the same time bring breakthrough innovation that transforms user and consumer experiences,
opens new business opportunities and new business models, and leverages data in entirely new
ways.
3. TCS Management Team
2.2.1 Promoters
Tata Sons Limited
Af-Taab Investment Company Limited
Tata Investment Corporation Ltd
Tata Industries Limited
TATA STEEL LIMITEDTHE
TATA POWER COMPANY LIMITED

19
2.2.2 Board of Directors.
Table No.: 2.3 List of Board Members
Board of Directors. Designation
IshaatHussain Chairman
N Chandrasekaran CEO and MD
Aarthi Subramanian Executed Director
Aman Mehta Independent, Non-Executive
VenkatramanThyagarajan, Independent, Non-Executive
Prof. Clayton M Christensen Independent, Non-Executive
Dr. Ron Sommer Independent, Non-Executive
Dr. Vijay Kelkar Independent, Non-Executive
O. P. Bhatt Independent, Non-Executive
There are 9 directors out of which 6 Independent Directors.
2.2.3 CEO/CMD OF TCS
Natarajan Chandrasekaran is an Indian business executive who is the CEO and managing
director of Tata Consultancy Services. Chandrasekaran took over as the CEO on October 6, 2009
prior to which he was COO and Executive Director of TCS
.
Natarajan Chandrasekaran
{Chief Executive Officer/ Chief Executive Director}

20
2.3 Corporate Governance
2.3.1. Meaning:-
Corporate governance is the system of rules, practices and processes by which a company is
directed and controlled. Corporate governance essentially involves balancing the interests of a
company's many stakeholders, such as shareholders, management, customers, suppliers,
financiers, government and the community.
Corporate governance broadly refers to the mechanisms, processes and relations by
which corporations are controlled and directed. Governance structures and principles identify the
distribution of rights and responsibilities among different participants in the corporation (such as
the board of directors, managers, shareholders, creditors, auditors, regulators, and
other stakeholders) and includes the rules and procedures for making decisions in corporate
affairs. Corporate governance includes the processes through which corporations' objectives are
set and pursued in the context of the social, regulatory and market environment. Governance
mechanisms include monitoring the actions, policies, practices, and decisions of corporations,
their agents, and affected stakeholders.
1. Wipro
Wipro was observed to be in compliance with all the mandatory conditions of Corporate
Governance. It has constituted sub-committees to focus on specificareas and make informed
decisions within the authoritydelegated to each of the Committees. Each Committee ofthe Board
is guided by its Charter, which defines the scope,powers and composition of the Committee. All
decisions andrecommendations of the Committees are placed before theBoard either for
information or approval.Wipro has four sub-committees of the Corporate Governance Board.
Table No.: 2.4 Objectives of Committee
Name Of Committee Scope in Company
1. Audit/Risk and Compliance Committee  It recommending the appointment of our
independent auditors to the shareholders.
 It observes compliance with legal and statutory
requirements.
 It ensures integrity of the Company’s financial
statements, discussing with the independent

21
auditors the scope of the annual audits, and fees
to be paid to the independent auditors.
 It reviews performance of the Company’s
Internal Audit function, Independent Auditors
and accounting practices and related party
transactions, functioning of Whistle Blower
mechanism.
 It also reviews implementation of the applicable
provisions of the Sarbanes Oxley Act 20020.
2. Board Governance, Nomination and
Compensation Committee
 It is responsible for developing and
recommending to the Board corporate
governance guidelines applicable to the
Company. It is responsible for developing and
recommending to the Board corporate
governance guidelines applicable to the
Company.
 It evaluates the Board on a continuing basis,
including an assessment of the effectiveness of
the full Board, operations of the Board
Committees and contributions of individual
directors.
 It establishes policies and procedures to assess
the requirements for induction of new members
on the Board. It implements policies and
processes relating to corporate governance
principles.
 It is responsible for approving and evaluating the
compensation plans, policies and programs for
whole-time directors and senior management,
and acting as Administrator of the Company’s
Employee Stock Option Plans and Employee
Stock Purchase Plans drawn up from time to
time.
 It reviews the Company’s policies that relate to
matters of corporate social responsibility,
including public issues of significance to the
Company and its shareholders.

22
 It is also responsible for formulating the
Disclosure Policy, its review and approval of
disclosures and determining and approving
salaries, benefits and stock option grants to senior
management employees and directors of our
Company.
3. Administrative/Shareholders & Investors
Grievance Committee
 The Administrative/Shareholders & Investors
Grievance Committee is responsible for resolving
investor’s complaints pertaining to share
transfers, non-receipt of annual reports, Dividend
payments, issue of duplicate share certificates,
transmission of shares and other shareholder
related queries, complaints etc.
 In addition to above, this Committee is also
empowered to oversee administrative matters like
opening / closure of Company’s Bank accounts,
grant and revocation of general, specific and
banking powers of attorney, consider and
approve allotment of equity shares pursuant to
exercise of stock options, setting up branch
offices and other administrative matters as
delegated by Board from time to time.
2. Infosys.
1. Audit committee  The primary objective of the committee is to
monitor and Providian effective supervision of
the Management's financial reporting process,
to ensure accurate and timely disclosures, with
the highest levels of transparency, integrity and
quality of financial reporting
 The committee oversees the work carried out in

23
the financial reporting process by the
Management, the internal auditors and the
independent auditor, and notes the processes
and safeguards employed by each of them.
 The committee has the ultimate authority and
responsibility to select, evaluate and, where
appropriate, replace the independent auditor in
accordance with the law.
 All possible measures must be taken by the
committee to ensure the objectivity and
independence of the independent auditor.
2. Compensation committee  The purpose of the compensation committee of
the Board shall be to discharge the Board’s
responsibilities relating to compensation of the
Company’s executive directors and senior
management.
 The committee has the overall responsibility of
approving and evaluating the compensation
plans, policies and programs for executive
directors and senior management
3. Investor grievance committee  The committee has the mandate to review and
redress shareholder grievances.
4. Nominations committee  The purpose of the nominations committee of
the Board of Infosys Limited is to oversee the
Company’s nomination process for the top level
Management and specifically to identify, screen
and review individuals qualified to serve as
Executive Directors, non-Executive Directors
and Independent Directors consistent with
criteria approved by the Board and to
recommend, for approval by the Board,
nominees for election at the annual meeting of
shareholders.
5. Risk management committee  The purpose of the risk management committee
(‘the committee’) of the Board of Infosys
Limited shall be to assist the Board in fulfilling
its corporate governance in overseeing the

24
responsibilities with regard to the identification,
evaluation and mitigation of operational,
strategic and external environment risks.
 The committee has overall responsibility for
monitoring and approving the risk policies and
associated practices of the Company.
 The risk management committee is also
responsible for reviewing and approving risk
disclosure statements in any public documents
or disclosures.
.
3. TCS
TCS has a strong legacy of fair, transparent and ethical governance practices. TCS has adopted a
Code of Conduct for its employees including the Managing Director and the Executive Directors.
In addition, the Company has adopted a Code of Conduct for its Non-Executive Directors. Both
these codes are available on the Company’s website.
Following is the code of conduct followed by TCS to achieve corporate governance:
Various committees that ensure that corporate governance is followed are as follows:
1. Audit Committee  It is responsible for overview of the company’s
financial reporting process and disclosure of its
financial information to ensure that the financial
statements reflect a true and fair position and
that sufficient and credible information is
disclosed.
 Its responsible for recommending the
appointment and removal of external auditors,
fixation of audit fee and also approval for
payment for any other services.
2. Risk Management Committee  It is responsible for approval of annual
remuneration plan of the company.
 It is responsible for the remuneration and
commission/incentive payable to the managing

25
director for each financial year.
3. Shareholders/Investors Grievance
Committee
 It is responsible to look into the redressed of
complaints of investors such as transfer or
credit of shares, non-receipt of
dividend/notices/annual reports, etc.
4. Remuneration Committee
5. Ethics and Compliance Committee
6. Bank Account Committee
7. Nominations Committee
8. Executive Committee
9. STPI/SEZ Committee
2.4 Corporate Social Responsibility {CSR}
2.4.1. Meaning of CSR.
Companies need to answer to two aspects of their operations.
1. The quality of their management - both in terms of people
and processes (the inner circle).
2. The nature of, and quantity of their impact on society in the
various areas.
Outside stakeholders are taking an increasing interest in the activity of the company. Most
look to the outer circle - what the company has actually done, good or bad, in terms of its
products and services, in terms of its impact on the environment and on local communities,
or in how it treats and develops its workforce. Out of the various stakeholders, it is
financial analysts who are predominantly focused - as well as past financial performance -
on quality of management as an indicator of likely future performance.
Corporate Social Responsibility is the continuing commitment by business to behave
ethically and contribute to economic development while improving the quality of life of the
workforce and their families as well as of the local community and society at large.
Traditionally in the United States, CSR has been defined much more in terms of a
philanthropic model. Companies make profits, unhindered except by fulfilling their duty to
Figure No.2.1 Social Responsibility

26
pay taxes. Then they donate a certain share of the profits to charitable causes. It is seen as
tainting the act for the company to receive any benefit from the giving.
Personally, I believe this model is more sustainable because:
1. Social responsibility becomes an integral part of the wealth creation process - which if
managed properly should enhance the competitiveness of business and maximize the
value of wealth creation to society.
2. When times get hard, there is the incentive to practice CSR more and better - if it is a
philanthropic exercise which is peripheral to the main business, it will always be the
first thing to go when push comes to shove.
2.4.1.1. CSR of WIPRO.
At Wipro, our deliberate engagement with important social issues goes back a long time. In 2001
we added our first organized community initiatives (Wipro Cares) followed by a program on
school education in 2002 (Wipro Applying Thought in Schools). We started working
methodically on Ecology & Environment in 2008. In 2014, under the overarching umbrella of
Education, we added a significant new initiative on ‘Children with Disability’. This program, at a
conceptual level, is an extension of our long running and successful program for 'Persons with
Disability' within Wipro. This compelling imperative of boundary-less thinking is a fundamental
driving principle of all our programs.
A. Education
Our work in education is based on the guiding principles that (a) It must contribute to systemic
or institutional improvement in education and / or (b) It should address the needs of underserved
and underprivileged sections and (c) In all cases, the work must be deep and meaningful. Our
programs span school and college education across India as
well as in the U.S. and address the themes of
‘Organizational Capability Building’, ‘Good Quality
Educational Material’ ,‘Advocacy’ and ‘Sustainability in
Education.Wipro Applying Thought in Schools (WATIS) is
a social initiative working on building capacity in school
education reform in India. Over the past 14 years, WATIS
Figure 2.2

27
has worked closely with 35 organizations working in improvement of school education.
B. Primary Health Care and Communities
Along with education, access to primary health care is a key determinant of an individual’s
future trajectory in life, including the ability to engage in productive livelihoods and responsible
citizenship, In India, nearly 600 million people do not have access to basic health care which is
affordable and of good quality. At Wipro, our approach in this regard is to focus on the health
needs of our proximate communities around the major centers of our operations. We run these
programs through Wipro Cares, our public trust.
Wipro Cares works with partners who oversee the delivery of good quality primary health care
services to underserved communities covering more than 75000 people in 53 villages across
Maharashtra, Karnataka, Andhra Pradesh & Uttarakhand. We follow an integrated approach that
along with the delivery of regular health services, lays emphasis on building the capacity of the
communities in developing a higher degree of self-reliance to handle their own primary health
care needs.
C. Ecology & Environment
Ecological sustainability is one of the defining challenges
facing humanity in the 21st century. How we manage the
issues of climate change, water scarcity, biodiversity loss
and pollution will determine the trajectory of our
development.
Wipro’s engagement with these issues goes back several years and is based on the dual approach
of
(a) continually improving the energy, water, waste and biodiversity footprint of our business
operations and
(b) engaging on community-level actions and advocacy on these issues. We present below some
interesting illustrations of our work
Figure 2.3

28
(C). We initiated the “Participative Community Water Program” in the Sarjapur area in
Bangalore which is completely dependent on groundwater. The initiative seeks to involve
proximate communities in a unique citizen-led governance model of groundwater. The year saw
the successful completion of the first phase of developing a detailed groundwater aquifer map for
a 33 sq km area around our Sarjapur campus.
D. The power of Engaged Employees
Employees are integral to many of our social programs. The Wipro Cares trust is built on a
model of employee contribution that is matched by Wipro. Nearly one in three employees or
more than 48,000 Wiproites are contributors to Wipro Cares making this possibly the largest
such initiative in India and one of the largest in the world. During 2014-15, nearly 1600
employees also engaged with more than 3600 hours of volunteer work, Employees have also
keen participants in other significant initiatives including those on campus biodiversity and
improving public transportation services.
In conclusion, we recognize that this is a journey where one learns all the time. While on the
matter of ethics and values, we will hold ourselves up to the highest standards, on matters of
governance and management of our CSR programs, we recognize that there could be many
opportunities for improvement. We will continually self-reflect, act, and review all the time.
 Total Expenses on CSR.
Wipro
 Out of the 132.7 Corers spent on CSR activities, ‘Program of Higher Education in
Engineering and Technology linked to skills development for the IT Industry’ received over
58% of total expenditure
 Partnered with around 68 implementing agencies like IIM Bangalore and BITS Pilani and
1also includes a private sector company, Bhoruka Power Corporation Limited.

29
2.4.1.2. CSR of INFOSYS.
At Infosys, the distribution of wealth is as important as its legal and ethical creation. A strong
sense of social responsibility is therefore an integral part of our value system.
 Infosys Foundation
We are committed to contributing to the society and established the Infosys Foundation in 1996
as a not-for-profit trust to support our social initiatives. The Foundation supports programs and
organizations devoted to the cause of the destitute, the rural poor, the mentally challenged, and
the economically disadvantaged sections of the society. The Foundation also helps preserve
certain cultural forms and dying arts of India.
 Community service
Through our Computers@Classrooms initiative launched in January 1999, we donated 2,567
computers to various institutions across India. Additionally, we have applied to the relevant
authorities for permission to donate computers to educational institutions on an ongoing basis in
the future. Microsoft Corporation continues to participate in this initiative by donating relevant
software. We would like to place on record our appreciation for their continued support.
 Social commitment in education
Infosys' Education & Research group has the pride of anchoring the Infosys Extension Program
(IEP), which consis
Ts of the Infosys Fellowship Program, Rural Reach program, Catch Them Young and Train the
Trainer.
 Business imperatives and strategy
As a global leader in consulting, technology, and outsourcing solutions, Infosys works with
clients in over 50 countries. Our experience gives our clients distinct advantages, helping them
manage their businesses and power their transformation into smarter, more sustainable
organizations. Our strategic objective is to build a sustainable organization that remains relevant
to the agenda of our clients, while generating profitable growth for our investors.
 Stakeholder engagement
We are committed to the wellbeing of our stakeholders. Based on discussions and deliberations
with our Board and Management, we have arrived at a list of stakeholders who are important to
us, and the list includes clients, employees, investors, suppliers / partners, governments /
regulatory bodies, and local communities. The stakeholder consultation process is used to

30
support the highest governance body’s identification and management of economic,
environmental, and social impacts, as well as risks and opportunities.
 Social Responsibility
Contributing to the world around us by reaching out to communities in the regions where we
operate has always been integral to our corporate social responsibility. From uplifting the poorest
sections of society through the Infosys Foundation, promoting science and math education in the
U.S. through the Infosys Foundation USA, encouraging science and research through the Infosys
Science Foundation, increasing the employability of engineering students through Campus
Connect, and simply empowering our employees to become responsible citizens through
volunteering, we will continue to strive towards inclusive growth and community development.
 Environmental stewardship
To realize our vision of building sustainable ecosystems, we identified energy, emissions, water,
and waste as material aspects to focus on as a part of our environmental sustainability efforts.
We were the first IT company in the world to make a commitment in the UN to become carbon
neutral by fiscal 2018, reduce per capita electricity consumption by 50 percent (against the
baseline year 2008), and use 100 percent renewable power by 2018. This year, we made
investments in carbon offset projects, which have environmental and social impacts. We became
the first Indian company to join RE100 — a global platform for major companies committed to
100 percent renewable power. Our campus at Hyderabad has a solar plant that can help us meet
100 percent of our electricity needs and we continue to innovate on improving energy
performance in buildings by focusing on highly efficient building designs, smart building
automation, and deep green retrofits
Infosys
 Infosys spent a total of 239.54 Crores out of the mandated 243 Crores in 2014-15.
According to the Annual Report, the balance amount was spent in April 2015.
 The names of beneficiary organization have been mentioned.
 15% of contribution is to Akshaya Patra Foundation towards eradicating malnutrition and
hunger.

31
 Next top 5 grantees also include Chennai Mathematical institute, Ramakrishna Mission,
IISC Bengaluru, Infosys Science Foundation and Spark IT Training Program run by the
Infosys Foundation.
 Other allocations include donations to IIT Bombay under healthcare and medical facilities
and to Banerghatta National park towards destitute care and rehabilitation
2.4.1.3. CSR of TCS.
Nurturing People and Planet Tata Consultancy Services Limited is an IT services, business
solutions, and outsourcing organization that delivers real results to global businesses, ensuring a
level of certainty no other firm can match. Within its CSR activities, TCS increasingly employs
the use of technology as a key enabler to assist and resolve business challenges faced by social
organizations and to tackle development issues faced by diverse communities globally. The CSR
committee of the Board was constituted on April 16, 2014. The Committee is responsible for
recommending to the board a CSR policy as well as the expenditure, monitoring the CSR policy
from time to time, overseeing the activities impacting the quality of life of various stakeholders
and overseeing the Company's corporate and societal obligations.
The core themes for TCS' CSR programmes are: n
 Education & Skill Development n
 Health
 Environment Programs
under Education include IT enabled modules and advisory systems for learning and creating an
interest and enabling an interest in IT.
 Sanitation Project
On a national scale, TCS pledged INR 100 crore to the 'Swachh Bharat, Swachh Vidyalaya
Abhiyan' to build dedicated sanitation facilities for girl students in adopted government schools.
The programme is being rolled-out in a phase-wise manner, with 860 schools targeted in Phase1.
 Visual Sub-titles:
To help the hearing impaired understand videos which do not have sub titles, TCS Innovation
Labs – Mumbai is building a photo-recognition algorithm that can generate 'lip movement; or
'visual' subtitles.

32
 Remote Speech Therapy (RST) platform:
This low cost mobile application and web based platform allows speech therapists to help
patients practice and improve articulation.
 Mother and child welfare apps:
TCS Innovation Labs – Mumbai, along with King Edward Memorial (KEM) hospital and
Mumbai Breastfeeding Promotion Committee (MBPC), developed a mobile based application to
educate lactating mothers. This was launched at KEM hospital in 2015. The lab and KEM
hospital have also developed an app that allows expectant mothers and health workers evaluate
the health status of the mother and child.
 Social collaboration tool for crowd safety:
A multilingual chat platform, GG talk, was developed and deployed in the Kumbh Mela to help
streamline field communication across departments. Secure, realtime communication and the
knowledge repository GG Talk offered improved crowd management during the event.
 Energy and water:
The Remote Energy Monitoring Solution that is creating real energy savings for TCS has inputs
in energy analytics from TCS Innovation Labs - Chennai, and is based on the innovative the TCS
IoT platform. Research on campus water management continues to be an area of interest.
Tata Consultancy Services (TCS)
 More than 220 Crores were spent in 2014-15 against a mandated 285 Crore.
 70% of the expenditure was made through TCS foundation. The foundation does not have
a separate website and the details of implementing agencies of the foundation are also not
given.

33
Chapter-3
EXTERNAL
ENVIRONMENT.

34
Chapter:-3
3.1 Governing Body of IT industry.
NASSCOM
The National Association of Software and Services Companies (NASSCOM) is a trade
association of Indian Information Technology (IT) and Business Process Outsourcing (BPO)
industry. Established in 1988, NASSCOM is a non-profit organization.
NASSCOM is a global trade body with over 2000 members, of which over 250 are companies
from the China, EU, Japan, US and UK. NASSCOM's member companies are in the business of
software development, software services, software products, IT-enabled/BPO services and e-
commerce.
NASSCOM facilitates business and trade in software and services and encourages the
advancement of research in software technology. It is registered under the Indian Societies Act,
1860.
NASSCOM is headquartered in New Delhi, India, with regional offices in the cities of
Bengaluru, Chennai, Hyderabad, Kochi, Kolkata, Mumbai, Pune and Thiruvananthapuram
3.1.1. EVENTS
NASSCOM organises the India Leadership Forum. It gives a platform to the developing
companies to network and present their product. Some of the notable events:
 NASSCOM Product Conclave
 Developer Roadshow
 Engineering Summits
 Nasscom Emerge 50
This is a six-month engagement, which will help the organisation to develop a better assessment
of their strengths and weaknesses.

35
1. Insights on industry trends
 Access to NASSCOM research and intelligence that tracks industry trends, growth
opportunities and best practices.
 Access to industry presentations, blogs, discussions and articles.
 An opportunity to engage with the NASSCOM research team and share case studies or
transformational stories.
2. Opportunities to enhance visibility
 Visibility through features and interviews on the NASSCOM website, as well as the
monthly newsletter, NASSCOM Newsline.
 Speak, sponsor or participant opportunities at NASSCOM events.
 Chance to contribute to blogs and newsletters as thought leaders.
 Brand building through NASSCOM awards and recognitions.
3. Opportunity to network, build and share best practices
 Chance to use the member database on NASSCOM's website to post a trade lead, or
participate in one.
 Chance to share or learn best practices through city-level networking sessions on human
capital development, data security, contract management, quality, diversity and more.
4. Global trade development
 Members can participate in opportunities for global networking and build business at
NASSCOM's global events, and through delegations and road shows.
 Network with companies in other countries through their delegations to India.
 Receive information regularly about policy updates in countries.
 Understand issues related to visas, immigration through NASSCOM's mobility best
practices sessions.
 Learn about trends and opportunities in markets through country reports.

36
3.1.2. PROMINENT PEOPLE
 C P Gurnani – Chairman of NASSCOM for 2016–2017
 B V R Mohan Reddy – Chairman of NASSCOM for 2015–2016
 R Chandrasekhar – President of NASSCOM from 2013 – Present.
3.2 Measures taken by Government Body to streamline IT Business.
Some of the major initiatives taken by the government to promote IT and IT’S sector in India are
as follows:
 Mr Ravi Shakar Prasad, Minister of Communication and Information Technology,
announced plan to increase the number of common service centres or e-Seva centres to
250,000 from 150,000 currently to enable village level entrepreneurs to interact with
national experts for guidance, besides serving as a e-services distribution point.
 The Government of Telangana has signed an agreement with network solutions giant
Cisco Systems Incorporation, to cooperate on a host of technology initiatives, including
Smart Cities, Internet of Things, cyber security, education digitization of monuments.
 The Railway Ministry plans to give a digital push to the India Railways by introducing
bar-coded tickets, Global Positioning System (GPS) based information systems inside
coaches, integration of all facilities dealing with ticketing issues, Wi-Fi facilities at the
stations, super-fast long-route train service for unreserved passengers among other
developments, which will help to increase the passenger traffic.
 The Pune Smart City Development Corporation (PSCDCL) has signed a memorandum of
understanding (MOU) with the European Business and Technology Centre (EBTC),
which will allow it to gain access to real-time knowledge of technologies, solutions and
best practices from Europe.

37
 The Department of Electronics and Information Technology (DeitY) plans to start a
digital literacy programme, aimed at training over six crore Indians in the next three years
to empower them for digital inclusion.
 India and the US have agreed to jointly explore opportunities for collaboration on
implementing India's ambitious Rs 1.13 trillion (US$ 16.58 billion) ‘Digital India
Initiative’. The two sides also agreed to hold the US-India Information and
Communication Technology (ICT) Working Group in India later this year.
3.3 Issues affecting the Industry.
 10 Challenges facing IT
1: Customer service:- Improve customer service by listening to and meeting the client's needs.
Make customer service job number one.
2: Human resources:- Develop creative ways to minimize stress, satisfy employee needs, and
match corporate needs to employee goals.
3: Productivity:- Make the best use of new technologies like cloud and mobile computing but
search out additional ways to increase productivity.
4: Complexity:- Manage and tame the complexity beast.
5: Obsolescence:- Increase the productive life of systems, software, and equipment.
6: Budgets:- Accomplish more with budgets similar to last year.
7: Marketing/public relations:- If you don't have the expertise, hire marketing and PR experts
who can get it right.
8: Multinational operations:- Instill a culture of teamwork among international team members
with diverse backgrounds and varying ethnicities.
9: The mobile generation:- Make use of mobile technology without tearing down the virtual wall
between work and family and leisure time.
10: Data storage and retrieval:- Determine what data, if any, is susceptible to bit rot and transfer
to new media before it becomes a problem.

39
Chapter:-4
Financials.
The ratios to be calculated for the top three companies in the industry should be for two years.
They are categorized into 3 parts:
Short Term Ratios
Long Term Ratios
Profitability Ratios
4.1 Short Term Ratio.
4.1.1. Liquid Ratio/Current Ratio:
The liquidity ratio, is a computation that is used to measure a company's ability to pay its
short-term debts.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term and
long-term obligations. To gauge this ability, the current ratio considers the current total assets
of a company (both liquid and illiquid) relative to that company's current total liabilities.
Table No. 4.1.1. Liquid Ratio
Infosys TCS Wipro
2014 3.7 3.18 1.98
2015 3.41 2.78 2.16
2016 3.36 2.24 3.13
0
0.5
1
1.5
2
2.5
3
3.5
4
2014 2015 2016
Infosys
TCS
Wipro
Graph No.: 4.1.1. Liquid Ratio

40
4.2. Long Term Ratio
4.2.1. Fixed Asset Turnover Ratio
Fixed-asset turnover is the ratio of sales (on the profit and loss account) to the value of fixed
assets (on the balance sheet). It indicates how well the business is using its fixed assets to
generate sales.
Table No.: 4.2.1. Fixed Asset Turnover Year Ratio
Infosys TCS Wipro
2014 0.89/3.24 5.79 4.46
2015 0.89/3.24 5.23 4.59
2016 0.89/3.24 4.95 4.54
4.2.2. Proprietary Ratio
The proprietary ratio (also known as the equity ratio) is the proportion of shareholders' equity
to total assets, and as such provides a rough estimate of the amount of capitalization currently
used to support a business.
Proprietary ratio = equity / total assets
0
1
2
3
4
5
6
7
2014 2015 2016
Infosys
TCS
Wipro
Graph No.: 4.2.1. Fixed Asset Turnover Ratio

41
Table No.: 4.2.2. Proprietary Year Ratio
Graph 4.2.2. Proprietary Ratio
4.2.3. Debt-Equity Ratio
Table No.: 4.2.3. Debt-Equity Year Ratio
Infosys TCS Wipro
2014 n/a n/a 0.15
2015 n/a 0.01 0.17
2016 n/a n/a 0.16
4.3. Profitability Ratios.
4.3.3. Gross Profit Ratio
The gross profit ratio shows the proportion of profits generated by the sale of products or
services, before selling and administrative expenses. It is used to examine the ability of a
business to create sellable products in a cost-effective manner. The ratio is of some importance,
especially when tracked on a trend line, to see if a business can continue to provide products to
the marketplace for which customers are willing to pay a reasonable price.
0
0.005
0.01
0.015
0.02
0.025
0.03
2014 2015 2016
Infosys
TCS
Wipro
Infosys TCS Wipro
2014 0.005426 0.025499 0.005426
2015 0.009286 0.020296 0.009286
2016 0.015776 0.02326 0.015563

42
Table No.: 4.3.1. Gross Profit Year Ratio
Infosys TCS Wipro
2014 0.36 0.32 0.22
2015 0.38 0.27 0.2
2016 0.37 0.3 0.185
Graph 4.3.1. Gross Profit Ratio
4.3.4. Net Profit Ratio
The net profit percentage is the ratio of after-tax profits to net sales. It reveals the
remaining profit after all costs of production, administration, and financing have been deducted
from sales, and income taxes recognized.
Table No.: 4.3.2. Net Profit Year Ratio
Infosys TCS Wipro
2014 0.23 0.29 0.19
2015 0.26 0.26 0.2
2016 0.29 0.27 0.18
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
2014 2015 2016
Infosys
TCS
Wipro

43
Graph 4.3.2. Net Profit Ratio
4.3.5. Earnings Per Share (EPS)
Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share
of common stock. Earnings per share serves as an indicator of a company's profitability.
Table No.: 4.3.3. Earnings Per Share Year Ratio
Infosys TCS Wipro
2014 44 94.17 31.66
2015 68.75 95.62 35.13
2016 105.96 116.13 36.12
Graph 4.3.3. Earnings Per Share (EPS)
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
2014 2015 2016
Infosys
TCS
Wipro
0
20
40
60
80
100
120
140
2014 2015 2016
Infosys
TCS
Wipro

44
4.4 Over all rank
Overall Rank 2014
Infosys 1.714285714
TCS 1.285714286
Wipro 2.571428571
TCS was the best performer across performance indicators for 2014
Overall Rank 2015
Infosys 1.571428571
TCS 1.428571429
Wipro 2.571428571
Overal Rank 2016
Infosys 1.833333333
TCS 1.428571429
Wipro 2.571428571
Conclusion:-
Various ratios has been considered for the company as performance indicators. If the value is
high, it means performance is good then this is called as positive performance indicator. In our
case all the ratios are positive performance indicators so for a particular year say 2014 for each
ratio we have ranked 3 companies as rank 1, 2 & 3. If the company is best performer in that ratio
it gets rank 1 next two companies will get rank two and three as per the score. After doing this
for all the ratios we took average of the rank for the whole year and as per the final ranked the
company performance as best performer second best performer and the lowest performer. Same

45
thing we did for past 3 years and taking the average of rank of last 3 years we decided who
which company was the best performer for past 3 years and that was TCS.

46
Chapter-5
RECENT
DEVELOPMENTS.

47
Chapter:-5
5.1 Expansion of IT sector in global market.
Telecom subscriber base expands substantially
 India is currently the second-largest telecommunication market and has the third highest number
of internet users in the world
 India’s telephone subscriber base expanded at a CAGR of 19.96 per cent, reaching 1058.86
million during FY07–16
 In March 2016, total telephone subscription stood at 1,058.86 million, while teledensity was at
83.36 percent
Graph 5.1 Growth in Total Subscribers
 India is currently the world’s second-largest telecommunications market and has registered
strong growth in the past decade and half. The Indian mobile economy is growing rapidly and
will contribute substantially to India’s Gross Domestic Product (GDP), according to report
prepared by GSM Association (GSMA) in collaboration with the Boston Consulting Group
(BCG).
 The Indian telecom sector is expected to generate four million direct and indirect jobs over the
next five years according to estimates by Randstad India. The employment opportunities are

48
expected to be created due to combination of government’s efforts to increase penetration in
rural areas and the rapid increase in smartphone sales and rising internet usage.
 International Data Corporation (IDC) predicts India to overtake US as the second-largest
smartphone market globally by 2017 and to maintain high growth rate over the next few years as
people switch to smartphones and gradually upgrade to 4G.
 Reliance Communications Ltd, India’s fourth largest mobile services provider, has agreed to
acquire Sistema Shyam TeleServices Ltd (SSTL), the local unit of Russian company Sistema
JSFC, in a deal valued at Rs 4,500 crore (US$ 671.01 million), which includes payments to the
government for spectrum allotted to Sistema.
 Singapore Telecommunications Limited (Singtel), the major shareholder in Bharti Airtel,
announced that it has signed an agreement with its majority owner Temasek Holdings Private
Limited to purchase a 7.39 per cent stake in Bharti Telecom Limited, the parent company of
Bharti Airtel Limited, in a deal worth US$ 659.51 million.
5.2 Technological Advancement
The rate of technological advancement is increasing with time, society is looking to create and
develop easier ways to live and lengthen their lives. The internet is a massive source of
information that millions of people use and depend on every day.
Our personal life is highly dependent on the technology that people have developed. Technology
has advanced with years and it has changed the way we purchase products , the way we live , the
way we communicate , the way we travel , the way we learn and so many changes have been
brought about by these continuous technological advancements. As people’s demands and life
style change, the demand for advancing the type of technology we use is high. Almost every
thing we use has been innovated to better standards, a good example is the ”Mobile Phone ”, the
type of mobile phones we had in 1995 are no longer on demand in this century, the demands of
mobile phone users have changed greatly, and this has resulted in the advancement of mobile
phone technologies.
Users of mobile phones demand simplicity and more functionality, which has forced mobile
phone manufactures to develop computer minded smart phones, which are so easy to use, but
also they come with more functionality compared to the type of mobile phones we used to have
in the past.

49
Technological advancements have helped businesses and organizations save time and cost of
production, which has been an advantage to all business, they manage these advancements to
gain competitive advantage. A good a example is the 3G / 4G broadband, small businesses have
taken advantage of this super fast internet to reach target markets with less costs of operation.
The effects of technological advancement are both positive and negative. Positively, technology
advancement has simplified the way we do things, it saves time, it increases on production, it
simplifies communication, it has improved health care and it has also improved our educational
environment. Negatively , technology advancement has made humans so lazy , technology users
are so dependent on new advance tech tools , this laziness has resulted into less innovation , it
has increased on health risks because technology users exercise less , it has affected the
environment because of the increase pollution which has affected the Ozone layers which has
resulted into global warming.
Below I have listed a few technological advancements which have changed our lives
 Technology Advancement in Medicine and Health care: Technology has helped in saving
many innocent lives. Human medicine and health sciences have improved. This extensive
research has resulted into the development of new drugs, and treatments which have helped in
curing most challenging human diseases and this has helped in saving so many lives and it has
also prolonged the human lifespan.
 Technological advancements in communication: Communication is a major factor in both
human lives and business. Communication technology has changed with years and it has even
become better, I can tell what the future holds in this field of communication.
 Technological Advancements in Agriculture: Agricultural technological advancement has
played a big role in changing the face of agriculture. This has resulted into increased
production and abundant food supply.
 Technological Advancements In Education: Technology advancement has greatly changed
the education sector. We now days learn through mobile gadgets and tablets. Technology has
simplified the way teachers reach their students and it has also helped students learn from
anywhere as well as enable them access academic information at any time from anywhere.

50
Information is power, so both students and teachers can use advanced technologies for
education to make research on subjects of interest.
5.3 Awards and recognitions
1. WIPRO.
 May 2016, it was ranked 755th on the Forbes Global 2000 list.
 Wipro was ranked 2nd in the Newsweek 2012 Global 500 Green companies.
 Wipro received the 'NASSCOM Corporate Award for Excellence in Diversity and Inclusion,
2012', in the category 'Most Effective Implementation of Practices & Technology for Persons
with Disabilities'.
 In 2012, it was awarded the highest rating of Stakeholder Value and Corporate Rating 1
(SVG 1) by ICRA Limited.
 It received National award for excellence in Corporate Governance from the Institute of
Company Secretaries of India during the year 2004.
 In 2014, Wipro was ranked 52nd among India's most trusted brands according to the Brand
Trust Report, a study conducted by Trust Research Advisory.
 In March 2015, Wipro has been recognized as the world’s most ethical company by US-
based Ethisphere Institute for the fourth consecutive year.
 Wipro won Gold Award for ‘Integrated Security Assurance Service (iSAS)’ under the
‘Vulnerability Assessment, Remediation and Management’ category of the 11th Annual
2015 Info Security PG’s Global Excellence Awards.
 Wipro won 7 awards, including Best Managed IT Services and Best System Integrator in the
CIO Choice Awards 2015, India
2. INFOSYS
 Infosys was in the list of top twenty green companies in Newsweek's Green Rankings for
2012.
 The company has been voted India's most admired company in The Wall Street Journal Asia
200
 Infosys was ranked #9 in Wired (magazine) 40 (2005).

51
 Infosys was ranked No.1 among the best managed companies in Asia Pacific in the
annual Euromoney Best Managed Companies in Asia survey, 2013.
 Infosys was ranked 19th on the world's most innovative companies list by Forbes.
3. TCS
 TCS BaNCS is a globally recognized industry leader, with its solutions consistently
recognized in top positions by industry experts.
 Forrester Research cites TCS BaNCS as a Leader in Customer-Centric Global Banking
Platforms report )
 TCS BaNCS is accredited with SWIFT Ready 2016 Certification for Corporate
Actions, Payments and Securities Processing.
 TCS placed as a leader in IDC Market scope – Worldwide Core Banking Solutions 2014
Vendor Assessment – Global Providers for European Banks
 TCS placed as a leader in IDC Market scope – Worldwide Core Banking Solutions 2014
Vendor Assessment – Global Providers for Asia/ Pacific Banks.

53
Bibliography
1. http://www.nasscom.in/about-nasscom.
2. www.wipro.com/documents/investors/pdf-files/Wipro-Annual-Report-2016.pdf.
3. www.wipro.com › Investors › Financial Information.
4. www.moneycontrol.com › MARKETS › Computers – Software.
5. www.tcs.com/investors/.../Annual%20Reports/TCS_Annual_Report_2015-2016.pdf.
6. https://www.infosys.com/investors/reports.../annual-report/annual/.../infosys-AR-16.pdf.
7. www.tcs.com/investors/corp_governance/Pages/default.aspx.
8. www.wipro.com/microsite/annualreport/2014-15/corporate-governance-intro.html.
9. https://www.infosys.com/investors/corporate-governance/.
10. https://www.infosys.com/investors/.../corporate-social-responsibility-policy.pdf.
11. www.tcs.com › Home › About TCS › Corporate Sustainability.
12. www.wipro.com/documents/.../policy-on-corporate-social-responsibility-2015.pdf.
13. www.ibef.org › Industry.
14. http://www.naukrihub.com/india/information-technology/swot-analysis.html.
15. https://www.equitymaster.com/research-it/sector.../Software-Sector-Analysis-
Report.as....
16. https://www.statista.com › ... › Technology & Telecommunications › IT Services.
17. www.authorstream.com/.../animeshsinhabvu-773446-financial-ratios-comparision-of-....
18. https://www.infosys.com/about/awards/Pages/all-awards.aspx.
19. www.thehindubusinessline.com/info.../tcs-infosys-wipro...awards/article8422753.ece.
20. www.academia.edu/.../Technological_Advancements_and_Its_Impact_on_Humanity
21. www.money.rediff.com.
22. www.profit.ndtv.com.

Conclusion:-
On the basis of ratio analysis of 3 companies as per previous years we can estimate following table:
Gross Profit Ratio Net Profit Ratio Earnings Per Share (EPS)
Ranking Wipro Infosys TCS Wipro Infosys TCS Wipro Infosys TCS
2014 0.22 0.36 0.32 0.19 0.23 0.29 31.16 44 94.17
Rank 3 1 2 3 2 1 3 2 1
2015 0.2 0.38 0.27 0.2 0.26 0.26 35.13 68.75 95.62
Rank 3 1 2 2 1 1 3 2 1
2016 0.185 0.37 0.3 0.18 0.29 0.27 36.12 105.96 116.13
Rank 3 1 2 3 1 2 3 2 1
Liquid Ratio Fixed Asset Turnover Ratio Proprietary Ratio Debt-Equity Ratio
Ranking Wipro Infosys TCS Wipro Infosys TCS Wipro Infosys TCS Wipro Infosys TCS
2014 1.98 3.7 3.18 4.46 1.13 5.79 0.005426 0.005426 0.0255 0.15 NA NA
Rank 3 1 2 2 3 1 2 2 1 2 1 1
2015 2.16 3.41 2.78 5.49 1.05 5.23 0.009286 0.009286 0.0203 0.17 NA 0.01
Rank 3 1 2 2 3 1 2 2 1 3 1 2
2016 3.13 3.36 2.24 4.54 1.03 4.95 0.015563 0.015776 0.02326 0.16 NA NA
Rank 3 1 2 2 3 1 2 2 1 2 1 1

Analysis of Top 3 IT Companies in India

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