Financial analysis of information and technology industry of India (a case study of Wipro Ltd and Infosys Ltd)

Abstract

Financial analysis now a day is an important instrument for the critical review of the performance of a business. It helps the concern to analyse the financial data and provide information which is required to take decisions regarding investments and also help to understand financial position better. The financial analysis portrays the financial health of a company and helps the companies to improve their financial resources and manage generated funds efficiently. Information and technology industry has grown up extraordinarily in India during previous years. Its contribution in economy has also increased with a huge margin. Investment in IT industry is considered as a profitable and less risky investment destination in the Indian context. The paper is an attempt to facilitate the investor and the management to asses the financial position of a firm from the proprietor’s point of view. In order to identify the financial management efficiencies this paper will analyse management of proprietor’s funds in IT Companies of India, Specifically for Wipro Ltd. & Infosys Ltd. The paper will also suggest the initiatives to be taken by both the companies for improving their financial management techniques and achieving the optimum capital structures.