IT sector plays a vital role in strengthening the Indian economy. In order to compare and set benchmark, a financial statement analysis should be made of all companies. The objective of the present paper is to measure the financial and accounting performances of leading Indian IT companies for the period 2010-2014. Financial statements and income statements of Tata Consultancy Services (TCS), Wipro, Infosys and Tech Mahindra were taken from databases like CMIE Prowess, Money Control and Yahoo Finance. The information derived from these financial statements were summarized and used to compute financial ratios for the five-year period. A graphical representation is provided in order to compare the financial ratios of one industry against the others for the same period. Based on factors like current ratio, return on shareholder’s equity, earnings per share, debtor turnover ratio and most importantly debt equity ratio, it is concluded that Infosys is the most sought-after company for investors. Along similar lines is TCS whose working capital turnover, total asset turnover and DuPont analysis returns show encouraging signs for shareholders who have profits as their prime point of consideration.

The Information Technology (IT) sector has been playing a vital role in strengthening the Indian economy. Its contribution was 7.2% to India’s GDP in 2012. In order to compare and set benchmark, a financial statement analysis should be made of all companies. A financial statement is a collection of data organized according to logical and consistent accounting procedures. Its purpose is to convey an understanding of some financial aspects of a business firm. Financial analysis (also referred to as financial statement analysis or accounting analysis) refers to an assessment of the viability, stability and profitability of a business, sub-business or project. The present paper attempts to measure the financial and accounting performances of leading Indian IT companies for the period 2010-2014. The paper is structured as follows: it presents a brief review of the literature dealing with the accounting and financial performance of the IT sector, followed by a description of the objectives, data and methodology. Subsequently, it discusses the results, and finally, offers the conclusion.

Accounting Research and Audit Practices, Comparative Analysis, Financial Performances, Indian IT Companies, Tata Consultancy Services (TCS), Information Technology (IT), Bombay Stock Exchange (BSE), National Stock Exchange (NSE).