Presented by:Abhijeet Shevde- 162Mehak Nasta-133Vanita Irani - Rupali Mahadeshwar - 143Monica Ennargurti - 134Pravina Mandkar - 148

Introduction to Siemens•Siemens was founded in Berlin by Werner von Siemens in 1847. Siemens is today a technology giant in more than 190 countries, employing some 440,000 people worldwide.

•The Siemens Group in India has emerged as a leading inventor, innovator and implementer of leading-edge technology enabled solutions operating in the core business segments of Industry, Energy and Healthcare.

•The Siemens Group in India comprises of 22 companies, providing direct employment to over 17,000 persons. Currently, the group has 19 manufacturing plants, a wide network up of Sales and Service offices across the country as well as over 500 channel partners.

Introduction to Siemens•Siemens Limited is a Public Limited Company and its registered office is situated at 130, Pandurang Budhkar Marg, Worli, Mumbai- 400018.

•Its Subsidiaries are:a. Siemens Rolling Stock Pvt. Ltd., Mumbai (SRSPL) – a 100% subsidiaryb. Siemens Building Technologies Pvt. Ltd., Chennai (SBTPL) - a 100% subsidiary

Siemens Limited

Industry (43%)Energy (51%)

Healthcare(6%)

IIA- Industrial AutomationIBT- Industrial Building TechnologiesIDT- Industrial Drive Technologies.IMO- Industrial Mobility

EFP- Energy Fossil PowerEPT- Energy Power TransmissionEPD- Energy Power DistributionEOG- Energy Oil & Gas.

Introduction to Siemens

Scope of analysis• Analysis of Financial Statements

•Comparison of Financial statements for last 5 years

•“Short-term and Long-term Health”

•Beyond Tomorrow

• Steps to save the FUTURE

•Our take

Balance Sheet

A balance sheet is a snapshot of a business’ financial condition at a specific moment in time, usually at the close of an accounting period. A balance sheet comprises assets, liabilities, and owners’ or stockholders’ equity. Assets and liabilities are divided into short- and long-term obligations including cash accounts such as checking, money market, or government securities.

Balance sheets can help identify and analyze trends, and can act as a thermometer to quickly check the Health of the organization

Financial Summary (Balance sheet)

Profit and Loss account

Profit and Loss Account is the Income statement which provides information on the efficiency in utilizing the resources in obtaining current resources and the current profitability of the company. It is an activity statement that shows details and results of the profit related activity for a period of time. It reports the net income earned by the company during a period.

Financial Summary (P&L Account)

Market Price of Shares traded.

YearSiemens on BSE- High

Siemens on BSE -Low

Siemens on NSE- High

Siemens on NSE- Low

NSE Market- High

NSE Market- Low

BSE Market- High BSE Market- Low

Mar-08 812.00 605.00 817.05 607.00 5,019.20 5,373.55 16,683.40 14,677.20

Jun-08 568.00 376.25 568.00 375.00 4,539.45 3,790.20 16,632.72 13,405.45

Sep-08 579.40 363.50 591.80 363.00 4,000.50 2,252.75 15,107.01 12,153.55

Dec-08 294.00 214.00 294.05 212.80 3,110.45 2,570.70 10,188.54 8,467.43

Mar-09 274.80 190.35 274.80 191.20 3,123.35 2,539.45 10,127.09 8,047.17

Jun-09 527.80 409.45 538.20 447.50 4,693.20 4,143.25 15,600.30 13,219.99

Sep-09 574.40 485.10 579.00 485.00 5,087.60 4,576.60 17,142.52 15,356.72

Dec-09 588.80 513.00 598.00 513.25 5,221.85 4,943.95 17,530.94 16,577.78

Mar-10 764.90 675.50 765.90 673.55 5,329.55 4,935.35 17,793.01 16,438.45

Jun-10 745.00 667.10 746.90 667.55 5,366.75 4,961.05 17,919.62 16,318.39

Sep-10 846.50 684.00 846.80 683.50 6,073.50 5,403.05 20,267.98 18,027.12

Equity Capital and Share-holdingsType of ShareholdersYear 2006 2007 2008 2009 2010Promoter (Siemens AG) 55.18% 55.18% 55.18% 55.18% 55.18%Public 14.15% 14.41% 16.28% 15.74% 14.35%

Banks & Indian Financial Institutions 6.14% 10.86% 15.60% 17.70% 16.88%Mutual Funds & UTI 8.60% 8.40% 5.51% 4.75% 6.25%Foreign Institutional Investors (FIIs) 12.28% 8.35% 3.53% 3.51% 4.14%Bodies Corporate 3.26% 2.40% 3.45% 2.68% 2.82%Non-Resident Indians(NRIs) and Overseas Corporate Bodies 0.38% 0.39% 0.44% 0.43% 0.37%

Directors & their Relatives 0.01% 0.01% 0.01% 0.01% 0.01%

Equity Capital and Share-holdings

The share holdings are classified by the number of shares that an individual or group may have. It is very evident that the maximum population have share holding ranging from 1-500 shares. As we move up, the number of people are diminishing. The percentage of people holding shares is inversely related to the number of shares.

Equity Capital and Share-holdings

The share holdings are classified by the Monetary Value that an individual or group may have. It is very evident that the small percentage of people are holding large amount shares.

Reserves and Surplus

Reserves and surplus includes the amount which is kept aside from profit to meet future contingencies. Siemens shows a very potent accumulation of reserves. The reserves can be seen growing year on year. This indicates that the company is capable to declare dividends even under moderately unfavorable conditions.

Amounts in Rs. Cr.

Reserves and Surplus

This graph shows the comparison between Equity Capital and Reserves. It can be seen that the amount raised from public is form of shares is very miniscule compared to the Reserves built over the years.

Secured and Unsecured Loans

This shows that Siemens Ltd has very less dependency on Loan- Secured and Unsecured. The company has NO secured loans, while the unsecured loans amount has decreased from 2 Crs. In Sep 2006 to just 0.24 Crs. In Sep 2010.

Fixed assets Long-term assets which are held in business for production of goods and service are called as fixed assets. These assets are not for sale.

Assets are further classified in Tangible and Intangible assets.

Intangible Assets can be converted into cash, like Patents and copyright. While others include tangible assets like Land, Building and Machinery.

Asset generation involves huge investments and it is important to have good return on such investment. This can be determined by the asset turnover ratio and return on asset ratio.

Fixed assets turnover ratio

The ratio establishes the relationship between fixed asset and long-term funds. The objective of calculating this ratio is to ascertain the proportion of long term funds invested in fixed asset. The ratio is calculated as given below.  

NET FIXED ASSET/TOTAL LONG TERM FUNDSThis shows that over the years the proportion of long term fund invested in fixed assets is decreasing.

Return on asset ratio

The ratio measures how efficiently profits are being generated from the assets employed in the business . A high ratio indicated that the assets are efficiently invested in and also utilized optimally.  

Net Profit Before Tax/Total AssetsThe ratio shows that Siemens Ltd have managed to use the assets very optimally and efficiently.

Short-term StabilityShort-term stability can be measured with the help of some liquidity ratios. They basically determine – the ability of a business to pay its bills as they come due and the extent to which the business is dependant on creditor’s funding. The following ratios are studied.

CURRENT RATIO: A liquidity ratio calculated as current assets divided by current liabilities.

QUICK RATIO: A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities.

CASH RATIO: A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities.

WORKING CAPITAL: This is more of a measure than a ratio. It should be a positive number. A positive number indicates that the company has capability to run business post payment of immediate liabilities.

Current Ratio

Current Ratio, Comparison to Industry Sep 30, 2006 Sep 30, 2007 Sep 30, 2008 Sep 30, 2009 Sep 30, 2010Siemens Ltd 1.06 1.13 1.15 1.25 1.27

Industry, Industrials 1.08 1.08 1.07 1.21 –

The current ratio has been good when compared with the industry standards. It has also has show continuous improvement in the last 5 years. An current ratio of 1.27 means that for ever Rs. 1 of current liability, the company has Rs. 1.27 of current asset.

Quick Ratio

Quick Ratio, Comparison to Industry Sep 30, 2006 Sep 30, 2007 Sep 30, 2008 Sep 30, 2009 Sep 30, 2010

Siemens Ltd 0.9 0.94 1 1.09 1.05

Industry, Industrials 0.64 0.61 0.64 0.75 –

The quick ratio does not include the inventory stock making it a more exact measure of measuring Liquidity. It shows that even in absence of any sales revenue, will the company be able to pay the current obligation.Siemens Ltd shows a quick ratio that is not only above the industry, but is also getting stronger with years passing

Cash Ratio

Cash Ratio, Comparison to Industry Sep 30, 2006 Sep 30, 2007 Sep 30, 2008 Sep 30, 2009 Sep 30, 2010

Siemens Ltd 0.28 0.1 0.17 0.28 0.35

Industry, Industrials 0.2 0.19 0.21 0.32 –

The cash ratio took a dip in 2007, however has shown significant improvement since.

Working Capital

This graph shows that Siemens Ltd has increased the working capital by 10 times in the last five years.This shows that the company is well equipped to weather any financial crises in the short run. The operations of the company will run smoothly and the company is not dependant on creditors extensively.

Comparison of the profits since 5 years

Particulars 2005-06 2006-07 2007-08 2008-09 2009-10 Profit before Tax 512.37 874.22 891.75 1,431.84 1,258.74Less: Tax 145.37 277.68 298.44 387.01 431.54Net Profit after Tax 365.86 596.54 593.33 1,044.85 827.21Sales Turnover 4,794.70 8,058.27 8,610.07 8,617.19 9,563.00

Particulars 2005-06 2006-07 2007-08 2008-09 2009-10 Profit before Tax 512.37 874.22 891.75 1,431.84 1,258.74Less: Tax 145.37 277.68 298.44 387.01 431.54Net Profit after Tax 365.86 596.54 593.33 824.85 827.21Sales Turnover 4,794.70 8,058.27 8,610.07 8,617.19 9,563.00

Profits Between 2009-10 and 2008-09 are not comparable as last year there was one time increase in financing & investment income arising from the sale of subsidiaries (Rs.205 Crores) Siemens Information Systems Ltd. and Siemens Information Processing Services Pvt. Ltd. On

excluding this one-time impact from last year’s profits, the comparable performance has been very impressive.

The Turnover of the Company increased by approximately 11% and stood at 9,563 Crores as compared to 8,617 of

Last year. Over the last 5 years Sales have doubled.

The effect on our profits was due to the additional cost impacts in large projects.

Amalgamations and Acquisitions (2010)

1. Amalgamation of Siemens Healthcare Diagnostics Ltd., Baroda (SHDL)

The Petition for the amalgamation of SHDL with the Company has been admitted in the High Courts at Mumbai and Ahmedabad. The “Appointed Date” fixed for the amalgamation is 1st October, 2009

2. Amalgamation of Siemens Rolling Stock Pvt. Ltd., Mumbai (SRSPL)The Board of Directors approved the proposal for the amalgamation

of its wholly owned subsidiary, SRSPL with the Company and the petition has already been admitted in the Bombay High Court. The

“Appointed Date” has been fixed as 1st October, 2009.

3. Amalgamation of Flender Ltd., Kolkata

The Hon’ble High Court of Calcutta vide its Order dated 16th March, 2010 sanctioned the ‘Scheme of Amalgamation’ of Flender Ltd., a wholly owned subsidiary of the Company, 2009. Thus, with effect from 1st October, 2009, Flender Ltd., stands amalgamated with the Company and its entirewith the Company. The “Appointed Date” is 1st October,business and undertaking

gets transferred to and vested in the Company.

4 .Amalgamation of SBTPL and Vista Security Technics Pvt. Ltd., Chennai (Vista)

The Hon’ble High Court of Judicature at Madras vide its Order dated 3rd September, 2010 read with Order dated 5th October, 2010 sanctioned the

‘Scheme of Amalgamation’ of our wholly owned subsidiaries i.e. SBTPL and Vista (a wholly owned subsidiary of SBTPL), with the Company. With effect

from 1st October, 2010 (Appointed Date), SBTPL and Vista stands amalgamated with the Company and the legal entity of SBTPL and Vista stands dissolved without winding up. Further, the entire business and

undertaking of SBTPL and Vista gets transferred to and in the name of the Company.

Social Dimension :

Siemens global program, Caring Hands, is a special charity program which helps people in need when they need it most. It covers a wide scope of activities including volunteering,

disaster relief, social sponsorship, and supporting or donating funds to good causes.They strive to contribute to our society and environment in positive ways. In addition to the

contribution they make through their innovative technology,they have encouraged businesses and staff to be aware of the environmental impacts of their actions and to be

involved in their local communitiesThey have encouraged their businesses to think broadly and creatively about their role in society, and have responded by supporting schools, charities and community projects.

St. Catherine’s Home, MumbaiThe St. Catherine’s Home project is an effort by Siemens to and the Company has been

associated with St. Catherine’s Home, Bandra, Mumbai for the last seven years. The objective of doing this is to make an attempt at providing a normal childhood to over 100

children who reside at St. Catherine’s. Siemens contributes towards the boarding, education and upgradation & refurbishment of infrastructure expenses of St. Catherine’s

Home on a yearly basis.

Maa Gayatri School, BarodaSiemens supported Maa Gayatri School, Baroda a primary Municipal school located near

their Factory in Baroda, in upgrading the school infrastructure and promoting primary education by creating an environment which is conducive to learning

Disaster Relief and RehabilitationDisaster Relief and Rehabilitation is an important part of the Siemens CSR program. This year our employees along with Red Cross Society

jointly distributed 200 family packs to the communities affected by Aila cyclone in West Bengal.For Haiti earthquake relief too Siemens’

employees came together as One Siemens and contributed a total of ` 134,253. In addition to the employee contribution, Siemens Limited

also contributed INR 10 lacs towards the rehabilitation of infrastructure projects and as support to set up hospitals in Haiti

through the German Red Cross.

Tsunami Rehabilitation project, Sri LankaRealizing the need for long-term rehabilitation of Tsunami victims,

Siemens as part of Ape Dayawa - the German Business Community in Sri Lanka is working with Jana Suwaya, an NGO, to provide long term rehabilitation to the Tsunami victims. This is being done by setting up

two Social & Learning centres for women and children by providing them with an opportunity to earn their livelihood in severely affected

regions of Tangalle and Hambantota in Sri Lanka.

Green EnergyIn India, they have recently kicked off operations of renewable energy business in

India by setting up an office at Vadodara. Going forward renewable energies like wind and solar will be the need of the hour and they are committed to play our role to

reduce carbon footprint

The products and solutions in Thier Environmental Portfolio make a significant contribution to climate protection by helping their customers reduce their CO2

emissions. Their goal by 2011 is to see their customers save 300 million tons of CO2 a year with their products and solutions, on a global basis.

Their global target is to increase Portfolio revenue to €40 billion in 2014. Each year, They spend about €1 billion on environmental R&D and they currently hold around

14,000 patents for climate protection and environmental technologies.

They Have aimed to achieve a 10% reduction in energy consumption in all company-owned offices, in India by 2012

On World Environment Day, 8916 units of power were saved across various Siemens locations that contributed to the reduction of their carbon footprint by 7 tonnes of CO2 within a single day. In addition all network printers were switched off and tree

plantation was encouraged at St. Catherine’s Home.

On World Earth Day,With assistance from IT Helpdesk all network printers of 13 major locations were disconnected from the Siemens network across India for one

day. Over 70% of the network printers were disabled from printing. This one day activity saved nearly 75,000 papers.

Training And Development

The current Lost-Time Injury Frequency Rate (LTIFR) per million hours worked has increased to 1.7 in FY10, due to a large addition of

sub-contractors. With the training of 3,172 employees including contractors on various Safety & Environment topics, they have

aimed to bring down the LTIFR.

In FY2010 they arranged 261 training programs for soft skills development and management development (MDP’s). More than 4500 of our employees participated in these programs and a sum total of

Rs. 3.15 crore was spent on Learning & Development of the employees.

Amounts in Rs. Cr.