seimens india limited financial management

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PROJECT REPORT ON
“Risk Return & Other Aspects Of SIEMENS ”
Submitted to-Prof. Moid Ahmad
Submitted by
Vishal Jamwal PGSF 1658
Ashish Kumar PGSF 1614
Medha Gupta PGSF 1626
Shikha Chaudhary PGSF 1647
Rishabh Tyagi PGSF 1638

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ACKNOWLEDGEMENT
We wish to express sincere gratitude to Prof. Modi Ahmad for providing
us an opportunity to complete our Financial management project in
“SIEMENS INDIA LTD”.
I Sincerely thank Prof.Moid Ahmad for their guidance and encouragement
in carrying out this project work .I also wish to express my gratitude to the
officials and other staff members who rendered their help during the
period of our project work.
I also thank Director of Jaipuria Institute Of Management , for providing
me the opportunity to embark on this project.

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Summary
India’s progress as a nation involves finding sustainable solutions to
challenges such as ever-growing demand for energy, higher industrial
productivity, modern urban infrastructure and high-quality healthcare.
Siemens, as an integrated technology provider, has a wide range of future-
oriented solutions to meet these challenges and be a partner in India’s
growth.
Leveraging the 160-year-long heritage of technology leadership, Siemens
offers a solution portfolio consisting of industry-specific applications to
optimize an the performance of enterprises across the entire value chain,
sustainable solutions for energy generation, transmission, distribution and
consumption, value-added services and consulting.
Siemens in India is a leading powerhouse in electronics and electrical
engineering with a business volume aggregating about Rs. 12,000 crore.
Siemens Ltd., in which Siemens AG (Germany) holds 75% of the capital,
is the flagship listed company of the Siemens group in India. It is the only

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Siemens company in the world other than parent Siemens AG and Siemens
Inc. in America that is listed on the stock exchanges (NSE: SIEMENS;
BSE: SIEMENS).
It has a nation-wide sales and service network, 22 manufacturing plants
and employs about 16,000 people.
Siemens in India focuses on sustainable growth, innovation and
environmental solutions. Along with leveraging its strong presence in the
high-end technology segment, Siemens is also building a portfolio of
innovative, simple-to-use, maintenance-friendly, affordable, reliable and
timely-to-market solutions customized for India.
With over 53,000 patents filed globally and over 27,800 researchers and
developers operating in the fields of research and development, Siemens
aims to address the impact of the megatrends that is shaping the world:
globalization, urbanization, climate change and demographic change.
Siemens has been a technology partner to some of the most developed
cities in the world.

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RECENT FINANCIAL POSITION IN INDIA
PARAMETER VALUES
Market cap (in cr.) 38,416.45
Earning per share (EPS TTM) 81.10
Book value per share 144.01
EBIT Margin (%) 15.90
PAT Margin (%) 10.91
ROCE (%) 36.30
PAT Growth (%) 96.17
Total debt to equity (D/E) Ratio 0.00
SHAREHOLDERS OF SIEMENS LTD
DESCRIPTION PERCENT OF SHARE(%)
Promoters 75.00
Individuals 11.35
Institutions 8.40
FII 3.22
Govt. 0.00
Others 2.03

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PROMOTERS
Indian promoters (whole time directors & their relatives)
Foreign promoters- Siemens AG, Germany
Siemens VDO Automotive AG
PRODUCTS
• Automation
• Building Technologies
• Drive Technology
• Healthcare
• Mobility
• Consumer Products
• Services

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CALCULATIONS
YEAR CLOSE PRICE RETURN
2010 820.75 0
2011 642.3 -0.21742
2012 667 0.038456
2013 663.7 -0.00495
2014 907.05 0.366657
2015
2016
1200.8
1107.2
0.323852
-0.07795
BETA 1.68
RISK FREE RETURN 6.45
MARKET RETURN 0.3(30%)
AVERAGE RETURN 0.061235
S.D 0.211314
CAPM 16.782

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Dividend % face value Dividend g(%)
10
28 10 2.8
30 10 3 7.14
30 10 3 0
33 10 3.3 10
35 10 3.5 6.06
36 10 3.6 2.85
26.05
g(%) of 2017 5.21
D1 3.78756
Ke(%) 8.35

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value of firm= D1/ke-g
= 120.6229299
ANALYSIS
WORKING CAPITAL DECISIONS
Siemens Limited is rated third in working capital category among related
companies.
Working Capital is measure of company efficiency and operating liquidity.
The working capital is usually calculated by subtracting Current Liabilities
from Current Assets. It is important indicator of the firm ability to
continue its normal operations without additional debt obligations.

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Working Capital can be positive or negative, depending on how much of
current debt the company is carrying on its balance sheet. In general
terms, companies that have a lot of working capital will experience more
growth in the near future since they can expand and improve their
operations using existing resources. On the other hand, companies with
small or negative working capital may lack the funds necessary for growth
or future operation. Working Capital also shows if the company has
sufficient liquid resources to satisfy short-term liabilities and operational
expenses.
SIEMENS LTD Working capital= Current Assets- Current Liabilities=18.62
billion.
Since the current asset of Siemens ltd is more than its current liabilities i.e
working capital is positive so it is clear that it can have more growth, can
expand their business and can improve their existing resources and also
they can cover their short term business obligations with liquid resources.
DIVIDEND DECISIONS
The firm has to balance between the growth of the company and the
distribution to the shareholders.It has a critical influence on the value of
the firm.It has to also to strike a balance between the long term financing
decision( company distributing dividend in the absence of any investment
opportunity) and the wealth maximisation .The market price gets affected
if dividends paid are less.Retained earnings helps the firm to concentrate

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on the growth, expansion and modernisation of the firm.To sum up, it to a
large extent affects the financial structure, flow of funds, corporate
liquidity, stock prices, and growth of the company and investor’s
satisfaction.
Since the year 2010 the company growth rate is increasing stagnantly from
2.8%(2010) to 3.6%(2015) which means it is a profitable organisation and
pays well to its equity shareholders as well with keeping retained earnings
3084 million $ (2015) from 2907 million $ (2014) which means 6%
growth in retained earnings as well , so it can invest more now in further
projects in order to build more equity for its shareholders.