Professional Documents
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Submitted to: Ms. Ayesha Zaman Submitted by: Neelofar saeed Submitted on: Dec 15, 2010
Acknowledgements
First of all I would like to thank Almighty Allah who gave me strength to complete my assignment on Siemens, then I greatly thankful for the efforts of my respected teacher Maam Ayesha Zaman. Without her feedback and guidance, this report would never been completed. She help me to stay motivated and on schedule. She dealt with all of my day-today problems and questions, and thus deserves the special thanks of Saba Kanwal for the support and cooperation she had done on this project. And a special thanks to Mr. Faisal Tahir who gave me the annual report of Siemens. I wish to thank all my class mates who graciously show their interest and contribute to this report to improve my final file. Once again I would thank my graceful teacher who is a source of inspiration for me and all my class mates. Introduction
Siemens History
From a small back building workshop in Berlin to a global firm - there are few industrial corporations that can look back on such a long history of success as Siemens can. News 19102010 Fbrica Cornella celebrates 100th anniversary
Active in Spain for 115 years, Siemens holds a leading position in the countrys industry, energy and healthcare sectors. One of Siemens most important facilities in Spain, its factory in Cornella near Barcelona, has now belonged to the traditionrich German company for 100 years.
Siemens in Pakistan
Siemens enjoys a leading position in Pakistan in the areas of Power Generation, Power Transmission and Distribution, Automation and Control, Industrial and Infrastructure Solutions, Medical Solutions, Transportation and Information Technology Solutions.
Mission
Generating earnings sufficient to ensure a secure future for the company and to protect and increase our shareholders/stakeholders' investment.
To enhance creativity and job satisfaction of our employees by providing opportunities for personal development, limited only by their own ability and drive.
To contribute to the national economy, whilst realizing a strong sense of responsibility to society and the environment.
To enhance the investment of our customers through Human Excellence, our Technology, our Processes, our High Standards of Quality and Financial Strength.
To support and strive for technology transfer to Pakistan through our global resources and local presence
RATIO ANALYSIS
Definition: Taking ratios of financial statement items designed to make indications of profitability, short-term liquidity and long-term solvency for specific firms to make absolute and relative judgments (in relation to other comparable firms). Profitability ratios operating risk/efficiency Liquidity ratios financial price risk, operating risk Solvency ratios risks of financial distress, financial structure risk
Particulars
Share capital and reserves Share capital Authorized 20,000,000 (2008: 20,000,000) Ordinary shares of Rs 10 each Issued, subscribed and fully paid-up Reserves Capital Revenue Total equity Non-current liabilities Retention money payable Other non-current liabilities Current liabilities Trade and other payables Provisions Short - term running finances Provision for taxation Total liabilities Total equity and liabilities
2009 %
2008 %
200,000 82,470
624,192 6,204,531 6,828,723 6,911,193 175,719 22,138 197,857 11,493,646 2,092,935 1,674,696 1,888,118 17,149,395 17,347,252 24,258,445
624,192 5,581,595 6,205,787 6,288,257 87,010 19,081 106,091 13,974,641 2,031,788 907,909 1,466,696 18,381,034 18,487,125 24,775,382
2.57 25.57
2.51 22.52
28.48 0.72 0.09 0.82 47.37 8.62 6.90 7.78 71.51 100
25.38 0.35 0.07 0.43 56.40 8.20 3.66 5.91 74.19 100
Particulars
2009
2008
2009
2008
Total assets
Particulars
Share capital and reserves Share capital
2009 vs 2008 %
200,000 82,470
2000,000 82,470 0
624,192 6,204,531 6,828,723 6,911,193 175,719 22,138 197,857 11,493,646 2,092,935 1,674,696 1,888,118 17,149,395 17,347,252 24,258,445
624,192 5,581,595 6,205,787 6,288,257 87,010 19,081 106,091 13,974,641 2,031,788 907,909 1,466,696 18,381,034 18,487,125 24,775,382
0 11.16
9.90 101.9 16.02 86.50 (17.75) 3.00 84.45 28.73 (6.70) (6.16) (2.09)
Particulars
Assets Non- current assets Property, plant and equipment Intangible assets Long-term receivables, deposits and prepayments Deferred tax asset
2009 vs 2008 %
Total assets
Particulars
Net sales and services Cost of sales Gross profit Commission and allowances earned
2009 % 100
(88.9) 11.02 0.51 11.54 (3.62) (1.50) 0.02 (5.10) 6.43 0.42
2008 % 100
(85.0) 14.99 0.60 15.59 (4.21) (1.99) 0.28 (5.91) 9.67 0.81
Marketing and selling expenses General administration expenses Other operating income Operating profit Financial income
Particulars
Net sales and services Cost of sales Gross profit Commission and allowances earned
2009 vs 2008 %
34.48 40.76 (1.14) 15.75 (0.48) 15.55 1.36 (90.03) 15.86 (10.49) (29.40) 32.65 410.90 (16.37) (11.96)
Marketing and selling expenses General administration expenses Other operating income Operating profit Financial income Financial expenses Net finance costs Profit before tax Income tax expense
RATIO ANALYSIS
Particulars
a) Current Ratio b) Quick Ratio c) Working Capital d) Debt to total assets ratio e) Debt to Equity ratio f) Long term debt to equity ratio g) Inventory turnover
Formulae
Current assets Current liabilities
Current assets- inventory
2009
20,380,263 = 1.18 17,149,395
20,380,263-4,367,431
2008
21,148,339 =1.15 18,381,034
21,148,339-4,588,682
Current liabilities
17,149,395 = 0.93
18,381,034 = 0.90
20,380,263-17,149,395 = 3,230,868
21,148,339-8,381,034 =2,767,305
Total debts Total assets Total debt Total S.H.Equity Long term debt Total S.H.Equity
Inventory of finished goods
17,347,252 = 0.71 24,258,445 17,347,252 = 2.51 6,911,193 197,857 = 0.028 6,911,193 36,149,390=8.27 4,367,431 36,149,390 = 9.32 3,878,182 36,149,390 = 1.49 24,258,445
36,149,390-32,164,974
18,487,125 = 0.74 24,775,382 18,487,125 = 2.93 6,288,257 106,091 = 0.016 6,288,257 26,880,742= 5.85 4,588,682 26,880,742 = 7.411 3,627,043 26,880,742 =1.084 24,775,382
26,880,742-22,850,583
Sales
36,149,390 = 0.11
26,880,742 = 0.149
2,564,203 = 0.095 26,880,742 1,679,068 = 0.06 26,880,742 1,679,068 = 0.06 24,775,382 1,679,068 = 0.26 6,288,257 6,288,257 24,775,382 =0.25 2,564,203
24,775,382-18,381,034
2,144,439
24,258,445-17149,395
=0.301
= 0.401
RATIO INTERPRETATIONs
a) Current ratio
Current Ratio of Siemens is slightly increased from 1.15 to 1.18 in Financial Year 2009 as compare to Financial Year 2008. Siemens has currently have sufficient current assets to pay of it current liabilities.
b) Quick ratio
Quick Ratio of Siemens is increased from 0.90 to 0.93 in Financial Year 2009 as compare to Financial Year 2008. It shows Siemens financial strength is stronger in 2009 than 2008.
The Working Capital of year 2009 shows growth as compared to year 2008 and, this shows Working capital is increasing per year. The increment in working capital is increasing the worth of the Siemens.
o) Network Ratio
The network ratio describe that in year 2009 ratio increases and in year 2008 it decreased, so we can say that it is increasing yearly because its total assets and equities is increasing than the year 2008.
In liabilities portion current liabilities are decreasing in 2009 as compared to previous year because 70.67% in 2009 and in 2008 it was 74.17 % on the other hand the situation is inverse because total equity is increasing from 25.38% to 28.48% as comparison of 2009 with 2008. So the overall Siemens position is going average in 2009 but Siemens fixed assets are increasing from 1.35% than last year and current liabilities are decreasing in 2009 from 3.5% as compare to 2008.