Project Report of SIEMENS
Project Report of SIEMENS
Project Report of SIEMENS
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CONTENTS
Company Profile
SIEMENS
“WHERE EXPERIENCE AND NEW IDEAS
CONVERGE TO SHAPE THE FUTURE.”
SEIMENS LTD.
E-76, MIDC Waluj,
Aurangabad- 431136.
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Introduction
SIEMENS (SIEMENS), the 55% Indian subsidiary of Siemens AG,
Germany is a leader in the electrical and electronic engineering sector. It offers
products, systems, solutions and services in power generation, power transmission
and distribution, automation and drives, industrial solutions and services,
transportation systems, enterprise communications, mobile phones and medical
solutions. Siemens AG holds a 54.6% stake in SIEMENS. The company was
established in 1957.
The company has a wide presence across the country; its operations include 15
Manufacturing plants and 16 sales offices. Siemens`s Worli plant makes medical
equipment. The three Kalwa units make motors, switchgear, and switchboards.
The Nashik unit makes industrial automation products, controllers, PLCs and
UPS. Joka works makes control boards and switchboards. Aurangabad makes
switchgear and photovoltaic modules. Goa makes medical equipment.
SIEMENS derives 33% of its revenues from the automation and drives
division, followed by 24% from the power division, 18% each from Siemens
Information Systems (SISL) and healthcare/other services divisions. During fiscal
2005, it acquired Siemens VDO Automotive, Demag Delaval Industrial Turbo
machinery, and 51% interest in Pimac Engineers and Services.
SIEMENS has a vast global network of 461,000 people, operating in over 190
countries. In India, SIEMENS mirrors the portfolio of Siemens AG, except that
Siemens VDO Automotive, and Siemens Public Communication Networks
operate as separate companies. SISL, another group company, is now a 100%
subsidiary of SIEMENS, and Siemens Building Technologies (SBT) has already
been merged into Siemens.
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History
From a humble workshop to a global
enterprise
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electric railway to laying the first telegraph line linking Britain and India, Siemens
was responsible for building much of the modern world's infrastructure.
While Werner was a tireless inventor during his days, Siemens today remains
a relentless innovator. With innovations averaging 18 a day, it seems like the
revolution Werner started is still going strong.
Group Profile
COMPONENTS. PERSONNEL
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MOTOR, DRIVES &UPS. SIEMENS REAL ESTATE (SRE)
MEDICAL ENGINEERING.
POWER GENERATION.
PROJECTS.
TELECOMMUNICATION.
AUTOMOTIVE BUSINESS.
Technology is no more a premium input; it has become the bare minimum in recent
years. Rapid advances have only fuelled this phenomenon. SIEMENS is extremely
vigilant in shunting out dated technology and replacing it with the best-in-class offers
of the times.
Product development, innovation and customizations are the tools SIEMENS uses to
stay ahead of the competition. This is because a continuous stream of innovative
products excites the market and enhances brand recall.
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The future is unpredictable, but not doing anything about it is fraught with grave risk.
SIEMENS extrapolates future trends on the basis of current changes in technology
and preferences as well as sheer gut feel. Fine-tuned business instincts are worth their
weight in gold, lots of it.
“Go for profit and go for growth” in this competition out of 280 companies
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Organization Chart
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Aurangabad Works (PTD)
The ET(Electrical Transmission). department, Aurangabad Works offers a variety of
products. They are:
Fuse bases.
Isolating link.
Fuse puller.
Fuses.
Residual current circuit breakers.
Residual current circuit breakers with overload protection.
CT (Curent Transformer) & CVT (Capacitor voltage Transformer)
COMPETITORS:
Anchor.
Bentex Linger.
General Electric.
Hager – L and T.
Havell’s Euro Breaker.
Legrand.
Merlin Gerin – Schneider.
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Business transaction process
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Basic Accounting Terminologies
Introduction
Every human being consciously engages himself in some meaningful activity.
Although the measure of success may vary in each case one has to be careful and
cautious at every stage in his life. Bookkeeping and accountancy is a science, which
has attracted the attention all such human activities. Accounting enables a person to
person, one kind of asset, or one class of income, or one class of income or loss.
Assets properties of every description owned by a person will be called assets for
example land and building, plant and machinery, cash balance, bank balance etc.
Bad debts which are irrecoverable and written off from debtors A/C as a loss are
Casting means the totaling of the books of account casting has to be done of the
ledger accounts and also of a journal.
Creditor a creditor is a person to whom we owe some thing. He is the person to whom
we have to pay.
Capital the dictionary meaning of the term capital is wealth capital is the total
account invested in business the capital of a business is the claim of the owner to the
Debtor is person who owes something he is the person who has to pay to other
person.
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Drawing is the total amount withdrawn by a trader from his business for meeting
giver of benefit. It is normally allowed to the customers, debtors, and retailers’ etc. the
1) Cash discount.
2) Trade discount.
immediately. Cash discount is closely related to cash receipt and cash payment. When
enable the retailer to sell the articles at list prices and earn a reasonable margin of
profit. The amount of trade discount is deducted from the invoice; therefore, it has no
connection as to the receipt and payment of cash. Hence, trade discount does not
Entry the term entry refers to the recording of a transaction in the books of account.
It is the primary record of a transaction in the books called journal or any other
subsidiary journal.
Expenses the effort made by business to obtain the revenues are termed as expenses.
Folio it means the page number of the book of original entry or of the ledger by
writing folio i.e. page number, one can easily find out on what page the original entry
is made and on what page the entry is made in the main book.
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Insolvent a person is said to be insolvent when his liabilities are more than asset
Insolvency when the liabilities of a firm are greater than its assets, it is referred to
as insolvency indicating the liabilities of a business to meet all its liabilities. Such a
Journal is the book 0f accounts in which business transaction are first recorded. It is
Liabilities debts owed by a person are called liabilities. Liabilities represent the
total amount to creditors. Debts arise because, goods may be purchased out but
payment may not be made at the time of purchasing the goods. Therefore the total
the line just below the journal entry within the brackets.
Posting transaction entered in the original books of entry are also to be recorded in
the ledger on the basis of the entry made in the original book is called posting.
Purchases the goods bought for resale or manufacture and resale are called
1) Cash purchase
2) Credit purchase
Revenue it represent the accomplishment of the enterprise until the company has
been successful in selling its products, no revenue is realized. Revenue is the amount
Sales the goods sold by a business for cash or on credit are called sales. The sales
1) Cash sales
2) Credit sales
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Solvent a person is said to be solvent when his assets are equal to or more than his
liabilities.
Stock goods unsold lying with a business on any given date are called as stocks.
two parties. It is dealing between two parties. It is dealing between two or more
persons.
The transactions are classified on the basis of exchange of goods and service they
may be.
1) Barter transactions.
2) Monetary transactions.
1) Cash transactions.
2) Credit transactions.
involved not only maintaining records, but also balancing of accounts, interrupting the
Classification of accounts.
1) Personal accounts.
2) Real accounts.
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3) Nominal accounts.
Real accounts DEBIT WHAT COMES IN AND CREDIT WHAT GOES OUT
INCOMES.
Journal is derived from the French word “jour’ which means a day journal is the
book of original entry or primary entry. It is book of daily record first of all the
business transactions are recorded in the journal and subsequently they are posted in
the ledger.
account a journal is meant for passing the entries of business transaction. A ledger is a
bound book. It contains many pages, which are called folios. These pages are
consecutively numbered. For each account a separate page is kept. Every ledger has
an index. It is generally an alphabetic index one page is allotted for each alphabet. All
the accounts commencing with that particular alphabet are indicated on that particular
page only. The page number on which the particular account appears is shown in the
index. This facilities appear is shown against the account in the index. The facilities
immediate reference.
Ledger posting
After the transaction has been analyzed into its debit and credit elements in a journal,
each such debit and credit elements must be transferred in a journal accounts. The
process of transfer of entries from journal to ledger account is called ledger posting.
Trial balance
After posting the transaction to respective ledger accounts they are balanced and then
a trial balance is drawn. A trial balance is a statement, which shows the list of
accounts showing debit balances and list of accounts showing credit balance. If
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double entry principles are strictly followed the total of the entire debit balances must
Trade discount
The amount of trade discount is deducted from the bill itself. Therefore, a trade
discount does not appear in the books of accounts. If a trade discount is given in the
transaction, the amount of such a trade discount is deducted from the gross value of
purchase and only the net value (arrived at after allowing a trade discount) is recorded
Debit note
A debit note is sent to the supplier when the goods purchased from him are returned.
A debit note is a statement sent by the buyer to the supplier stating the full details of
the good returned. It is sent along with the goods. It intimates the supplier that his
account has been debited by the value of the good returned to him.
Credit note
A credit note is sent to the customers when we receive goods returned from them. It
gives the full details of the good returned by the customer. Credit notes are generally
is printed in red ink. Transaction is recorded in this book on the basis of credit notes.
Trial balance
The dictionary for accountants written is “ a list or abstract of the balance or of total
debits and total credits of the accounts in a ledger, the purpose being to determine the
equality of posted debits and credits and to establish a basic summary for financial
statements”.
If all the business transaction were recorded in one and the same journal, the journal
would be bulky and cumbersome. It would be very difficult to make clerks to work on
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the same journal at one and the same time. Instead of recording all the transaction in
on and the same journal, they are recorded in separate journals meant for the purpose.
Sales book
Cash book
Journal proper.
Final accounts
The final accounts are prepared to find out the profit or loss and to know the financial
Balance sheet
Trading account
A trading account is prepared to find out the gross profit or gross loss in the
business done during the year. The gross profit is the difference between the cost
of good sold and the sale proceed without any deduction of indirect expenses.
directly affecting the cost of good sold. The cost of good sold includes the
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purchase price of the good sold plus buying and bringing expenses and the
Profit and loss account is another summary account, which is prepared after
preparation of trading account. Trading account does not disclose the net income
or loss. There are other expenses in order to ascertain the profit or not loss.
Balance sheet
date. It is a snapshot of the financial condition of the business. The balance sheet
is not account; it is only a statement showing asset and liabilities of the business.
It is important to note that the balance sheet always balances. The total value of
economics unit as at a given moment of time, its assets, at cost, depreciated cost or
Introduction
Of Working Capital
Meaning:
operations. The movements of the funds from capital to income and profits and back
to working capital are one of the most important characteristics of the business. This
cyclical operation is concerned with utilization of the funds with the hope that will
return with an additional amount called income. If the operations of the company are
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to run smoothly, a proper relationship between fixed capital and current capital has to
maintain.
The adequacy of cash and other current assets together with their efficient
should be able to judge the accurate requirement of working capital and should be
quick enough to raise the enquired funds to finance he working capital needs.
Working capital is also called as net current assets, “it is the excess of current assets
over current liabilities.” All organization has to carry working capital. It is important
from the point of view of both liquidity and profitability. Poor management of
working capital means that funds that unnecessarily tied up in idle assets hence
educing liquidity and also reducing ability to invest in productive assets such as plant
The term working capital refers to current assets, which may be defined as:
i) Those which are convertible into cash or equivalents with the period of
The fixed as well as current assets, both requires investment of ‘Funds’. So the
management of working capital and fixed assets apparently seem to involve it type of
concept and methodology than the techniques used in fixed assets management.
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Objective behind the Study
Of Working Capital &
Research Methodology
Working capital management is very important in modern business. The analysis
of working capital is also very useful for short-term management of funds. The
Company.
2. The data used in this study have been given commercial Manager. As
per the requirement and necessary some data are grouped and sub
grouped.
The data of Siemens Ltd. For the four Month used in this study have been
taken from company. Editing, classification and tabulation of the financial data, which
are collected from the above-mentioned sources, have been done as per the
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Types of working capital
The type, kinds of a thing are depending upon the different utilization of
Net Working
Capital Gross Working
Capital
Negative
Working Capital
Types of
Working Capital Permanent
Working capital
Cash Working
Capital
. Temporary
Balance Sheet Working Capital
Working Capital
It is the minimum amount of the current assets, which are needs to conduct the
business even during the dullest season of the year. This amount varies from year
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to year depending upon the growth of a company and stage of the business cycle
in which it operates. It is the amount of funds required to produce the goods and
It represents the current assets, which are required on a continuing basis over the
iii) It constantly shifted from one assets o another and continues to remain in
It represents the additional assets, which are required at different times during
the operating year. Seasonal working capital is the additional amount of current
assets particularly cash, receivables, and inventory which is required during the
more active business seasons of the year. It is the temporary investment in the
nature.
The balance sheet working capital is one, which is calculated from the items
appearing in the balance sheet. Gross working capital, which is represented by the
excess of current assets over current liabilities, is example of the balance sheet
working capital.
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It is one, which is calculated from the items appearing in he Profit and Loss
Account. It shows the real flow of money or value at a particular time and
financial management in recent year. The reason is that the cash working capital
business.
magnitude.
Management:
There are some principles of sound working capital management policy. They
are as follows:
Risk here refers to inability of a firm to meet its obligation when they become
due for payment. Large investment in current assets with less dependence on a short
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term borrowing increase liquidity, reduces dependence on short term borrowing
On the other hand less investment in current assets and greater dependence on
debt increase the risk, reduces liquidity and increases profitability. In other word these
The various sources of rising of working capital finance have different cost of
capital and the degree of risk involved. Generally higher the risk lower is the cost and
lower the risk higher is the cost. A sound working capital management should always
capital. According to this principle, a firm should make every efforts o related
assessment.
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Factors determining working
capital
1) Nature or character of Business:
its business. Public utility undertaking like Electricity, Water Supply, and Railways
need very limited working capital because they offer cash sales only and supply
services, not products and as such no funds are tied up in inventories and receivables.
On the other hand trading and financial firms require less investment in fixed assets
but they have to invest large amount in current assets like inventories, receivables and
2) Production cycle:
Another factor, which has a bearing on the quantum of working capital, is the
production cycle. The term ‘production or manufacturing cycle’ refers to the time
involved in the manufacturing of goods. It covers the time span between the
procurement of raw material and the completion of the manufacturing process leading
In other words, there is sometime gap before raw material becomes finished
goods. To sustain such activities that need for working capital is obvious. The longer
time span (production cycle) the large will be the tied up funds and therefore, larger is
3) Production Policy:
variations. The requirement of working capital in such case, depend upon the
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inventories during slack period with a view to meet high demand during peak season
of the production could be curtailed during the slack season and increased during the
4) Credit Policy:
working capital by determining the level of book debts. The credit sales result in
higher book debs. Higher book debts mean more working capital. On the other hand,
if liberal credit terms are available from the supplies of goods trade needs less
working capital.
purchase and sale, and the ole given to credit by a company in its dealing with
The working capital requirement of concern increase with the growth and
relationship between the growth in the volume of business and the growth in the
working capital of a business, yet it may be concluded that for normal rate of
expansion in the volume of business. We may have retained profits to provide for me
working capital but in fast growing concern, we shall require lager amount of working
capital.
6) Seasonal Variation:
In certain industry raw material is no available throughout the year. They have
to buy raw material in bulk during the season to ensure uninterrupted flow and
process them during the entire year. So a huge amount is blocked in form of row
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material during the peak season, which gives more requirements for working capital
7) Earning Capacity:
Some firm have more earning capacity than others due to quality of the
products, monopoly condition etc. Such firms with high earning capacity may
generate cash profits from operations and contribute to their working capital.
8) Dividend Policy:
capital. A firm that maintains a steady high rate of cash dividend irrespective of its
profits level needs more working capital than the firm that retains large part of its
9) Other Factors:
fixed assets. This is so because there is always a minimum level of current assets,
which are copiously required by the enterprise to carry out its day-to-day business
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operation and this minimum, cannot be expected to reduce at any time. This minimum
level of current assets need long term working capital, which is permanently blocked.
Similarly, some amount of working capital may be required to meet the seasonal
demands and some special exigencies such as rise in prices, strikes, etc. this gives rise
to short term working capital which is required for day to day transaction also.
The fixed proportion of working capital should be generally financed from the fixed
capital sources while the temporary or variable working capital equipment may be
Methods of CalculationCommercial
of Paper
Required Working Capital
The methods of calculation of required working capital are as follows:
duration between the firm’s payment of cash for raw material, entering into
production and inflow of cash from debtors and realization of receivables. Simply
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speaking, operating cycle is the duration between the outflow of cash and inflow
of cash and this may be evidenced from the following working capital cycle.
Receivables
The above and network diagram may offer a clear picture of a complete
working capital i.e. it is a cash phenomenon. In the diagram, raw material, stock refers
to material only. In work in process, components involve are raw material, wages, and
overheads and profits. Credit involves for the components of raw material, etc.
something a contingency margin is also given while estimating the working capital
requirement.
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Avg. Stock of Finished Goods
3) Finished Goods Holding Period =
Avg. Cost of Goods Sold per day
In the form of a simple equation working capital cycle or operating cycle can
be represented as bellow:
O = R+W+F+D-C
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Current Assets: Amount
------
i) Stock of Raw Material (for…month consumption)
------
ii) Work In Process (for…Month)
a) Raw Materials
b) Direct Labour
c) Overheads
------
iii) Stock of Finished Goods (for…month sales)
------
iv) Sundry Debtors or Receivables (for…month sales)
------
v) Payments in Advance (if any)
------
vi) Balance of Cash (required to meet day-to-day Expenses)
------
vii) Any Other (if any)
----------
Net Working Capital Required
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Working capital, in general practice, refers to him excess of current assets over
problems that arise in attempting to mange him current assets, current liabilities, and
interrelationship that exists between them. In other word it refers to all aspects of
The basic goal of working capital management is to manage the current assets
and current liabilities of a firm in such way that a satisfactory level of working capital
inadequate as well as excessive working capital position is bad for the business.
Inadequacy of working capital, may lead the firm insolvency and excessive working
capital implies idle funds, which earn no profit for the business. Working capital
management policies of the firm have a great effect on its profitability, liquidity and
three-dimensional nature:
2) Dimension II is concerned with the decision about his composition and level
of current assets.
3) Dimension III is concerned with the decision about his composition and level
of current liabilities.
This dimension aspect of his working capital has been more clearly and precisely
Explains by the following diagram.
Dimension I
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Dimension III Dimension
II
Composition
& Level of
current assets
Evaluation of working
capital
The working capital management needs attention of all the finance head/ working
capital management is important for avoiding unnecessary blockage of fund. Like that
It is very important to have proper balance in regard to the liquidity of the firm.
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Table I - Statement of Working Capital Requirement
2,200,000
Working Capital (in Rs.)
2,100,000
2,000,000
Working Capital
1,900,000
Requirement
1,800,000
1,700,000
1,600,000
2002-03 2002-04 2002-05 2002-06
Year
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Table II - Statement of Changes in Working Capital
B) Current Liabilities:
i) Current Liabilities 12,759,018 24,275,052 11,516,034
ii) Provisions 2,468,701 3,415,310 946,609
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Observation and Summary
Training in a multinational company like SIEMENS, Aurangabad. Which is
fast growing company in the field of high voltage product i.e. C.T., C.V.T. Breaker. It
is noticed that functioning in the company is carried out very systematically and
technically. Technical as well as common process is followed meticulously.
It is observed that SIEMENS firmly believe on human and ethical value so,
being a soft management they treat employee as a very important and appreciating
assets of continuous growing.
Not only this company that strive to ensure organization growth by raising strength of
employees and providing various facilities for every individual to raise his\ her full
potential.
Table I: -
04 but in the year 2005-06 it had been increase from 1.72cr to 2.95cr and the current
liabilities has been increase from 2002-06. Current asset decreases in 2004-05 and
SIEMENS ltd at only in the 2003-04 it increased reaming year i.e. 2004-05 and 2005-
06 it decreases, it means that in the year excluding 2003-04 working capital falls
In the 2002-03, 2004-05 and 2005-06 working capital shows the negative
trend due to the increase in the current liability in the condition of the year 2003-04 is
Table II: -
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Statement of changes in the working capital is prepared to show the changes
in the working capital between the two balance sheet dates. This statement is prepared
with the help of the current asset and current liabilities derived from the 2 balance
sheets
So,
from current assets and current liabilities and the other information is not of any use
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Of PTD H-5 in SIEMENS Ltd.
Human needed desire, expectation etc. are changing constantly because of the
these factors of influence heart, brain & mind. Human beings needed to be maintained
at every cost. They are considered as through individuals which varied characteristics,
attitude etc
management of the human resources that provides all other organizational function.
respect of:
a) Their procurement
development.
1) EMPLOYMENT
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• To cultivate & maintain adequate source of labor supply
wage rates.
followed.
3) TRAINING
employees.
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• To provide for training in safety & company policies.
employee.
employees.
5) SERVICE ACTIVITIES
REPRESENTATION
representatives.
union level.
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STORE DEPARTMENT
the items kept in the store. Store is the connecting link between the shops as work
place & the production control department. Raw material is usually referred to as
pilferage
control.
categories-
• Overall integration
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QUALITY ASSURANCE DEPARTMENT
assuring its quality or rather maintain its quality to the best this assurance of quality to
the best.
This assuring of quality or rather maintaining its quality to the best. This assuring of
quality is given either in process of manufacturing it self or after the completion of the
product. Thus there are three main type of quality assurance namely: -
1. Inward inspection.
3. Sample inspection.
The inward inspection is done when the parts are purchased form the venders. The
parts, which come from venders, are inspected properly by the inspector or engineer
or technician and then if it okay then the part is allowed to go to the production dept.
where it is made fit in the appropriate place. If the part is found faculty in the first
inspection, the whole bunch of the parts is sent back to the vender and asked for new
one.
minor faults are some times critical. The minor faults are some times repaired within
the company itself but in case of the major & critical faults, the part is straight
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LINE QUALITY ASSURANCE:
any part during the manufacturing process. Here any part is taken and then testing, if
it gives positive or desired result then it is preceded further. But here also if the result
is not positive then there is a through inspection is testing again & again. In this line
quality assurance any part can be check and taken care of immediately. In process
SAMPLE TESTING:
Audit means sample checking of 20% of 10 units & then send to store.
This inspection is nothing but selection two final CT & CVT. randomly out of 10
packed once and are kept under 24 hours run test. In this testing the following areas
are considered:
If it goes smoothly and as desired then the total 10 packed CT & CVT
are allowed to go the store for dispatches. But if the selected one is found or giving
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PLANT ENGINEERING DEPARTMENT
• Ensure safety
• Improve productivity
TYPES OF MAINTENANCE:
1) Preventive Maintenance
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Objectives
interruption.
for use.
maintenance utilizes the ideal time of equipment without much disturbance schedule.
Objectives
2) Breakdown is minimized
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Breakdown maintenance:
In this the request are made after the equipment fails to perform its normal
function.
Causes: -
2) Lack of lubrication
Disadvantages : -
4) Reduction of output.
This type to lower level efficiency & the loss of production time, it is not
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MATERIALS DEPARTMENT
This department gets the production planning from the marketing department.
The next step of material dept is to contact with respective vendor to fulfill the
The vendors have to make the quotation and allow submitting in company
including the price list of raw material. The proper vendor is selected who is eligible
from point of view of price, quality and who clarifies every teams and condition the
transaction. The purchase order is given to vendor. The PO includes the list of raw
material, quantity etc. The PO is very important part of transaction as it the legal
proof between the company and the vendor. But before giving the PO to vendor,
material dept checks the stock in stock dept and then accordingly gives order.
The SIEMENS Ltd. (PTD H-5 div.) deals with two types of procurement –
Local procurement and Import procurement. But it gives first preference to Indian
The material dept get the plan of production from P.P.C. dept. The SIEMENS.
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DESIGN & DEVELOPMENT DEPT.
From the name itself it is clear the design of new model of CT & CVT. is done
in this dept. and after the approval of it development of same model is done.
The requirement of new model is come from the marketing dept .As per the
need the new model is design. It may include aesthetic looks i.e. External design or
Graphic Design / Internal design. So accordingly the model is designed and sends it to
top management for its approval. Again from market feedback, the necessary chances
are made if required. And the final model is selected and the production is started.
These are some of the main function of D & D dept. The CT & CVT. is
So, the D & d dept has very important function to perform- designing of new
model is not very easy task and after that development of it is done in same dept. The
further testing is also done in D & D dept. The final approval is done with
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Conclusion
• From this study, it has concluded that in sector there is huge requirement of
PTD instrument from Siemens ltd.
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Bibliography
-By R. K. Jain
2. Commercial Department.
4. Financial Management by
-S. N. Maheshwari
5. www.siemens.com
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