SECURITES AND PORTFOLIO MANAGEMNT

K C COLLGE PROJECT
SUBMIT TO: Mr. FAYAZ SIR

NAME: SAURABH RAI CLASS: TY-BBI ROLL NO: 27 8/24/2012

Siemens India Limited

Introduction:
Siemens Limited operates in industrial, energy, healthcare, and consumer products sectors in India and internationally. Its Industry Automation segment provides a range of automation products and systems, industrial automation systems, and lowvoltage switchgears. The companys Drive Technologies segment offers drives and motors, special purpose motors, and process and motion control systems. Its Industry Solutions segment undertakes turnkey projects in the industrial and infrastructure sectors; and offers concept, engineering, procurement, supplies, installation, commissioning, and after sales services. The companys Mobility segment provides solutions for rail automation, railway electrification, light and heavy rail, locomotives, trains, turnkey projects, and integrated services. Its Fossil Power Generation segment offers products and solutions for power generation based on fossil fuels ranging from gas and steam turbines and generators to turnkey power plants. The companys Oil & Gas segment provides products and solutions that are used for the extraction, conversion, and transport of oil and gas; and solutions for power generation and distribution, compressors with electrical and mechanical drives, and process and automation technologies, as well as IT solutions for pipeline and storage applications. Its Power Transmission segment offers products and solutions for high voltage direct current transmission systems, substations, switchgears, and transformers. The companys Power Distribution segment provides solutions ranging from the automation of power grids to products, such as medium-voltage switchgear and components. Its Healthcare segment offers diagnostic, therapeutic, and life-saving products. The companys Real Estate segment provides real estate management services. The company was founded in 1847 and is based in Mumbai, India. Siemens Limited is a subsidiary of Siemens AG.

History of Siemens Ltd. Siemens was founded in Berlin by Werner von Siemens in 1847. As an extraordinary inventor, engineer and entrepreneur, Werner von Siemens made the world's first pointer telegraph and electric dynamo; inventions that helped put the spin in the industrial revolution. He was the man behind one of the most fascinating success stories of all time - by turning a humble little workshop into one of the world's largest enterprises. As Werner had envisioned, the company he started grew from strength to strength in every field of electrical engineering. From constructing the world's first electric railway to laying the first telegraph line linking Britain and India, Siemens was responsible for building much of the modern world's infrastructure. Siemens is today a technology giant in more than 190 countries, employing some 440,000 people worldwide. Our work in the fields of energy, industry, communications, information, transportation, healthcare, components and lighting has become essential parts of everyday life. 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. Siemens in India: Siemens Ltd. India traces its beginnings back to the early s, when visionary Manish Kumar first imported Siemens power generation equipment. This initial investment laid the foundation for the sophisticated power infrastructure found today in the country. In March 1999 Siemens Ltd. was registered in Jeddah as a joint venture between E.A. Juffali and Brothers and Siemens AG as a majority shareholder. In the field of Process Control and Industrial Automation, Siemens pursues mutually beneficial relationships with systems integrators, such as Cube Technologies.

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 Groups business is represented by various companies that span across these various segments. Siemens brings to India state-of-the-art technology that adds value to customers through a combination of multiple high-end technologies for complete solutions. The Group has the competence and capability to integrate all products, systems and services. It caters to Industry needs across market segments by undertaking complete projects such as Hospitals, Airports and Industrial units. The Siemens Group in India comprises of 17 companies, providing direct employment to over 18,000 persons. Currently, the group has 21 manufacturing plants, a wide network up of Sales and Service offices across the country as well as over 500 channel partners. Today, Siemens, with its world-class solutions plays a key role in Indias quest for developing modern infrastructure.

Future Prospects of Siemens Ltd:

Investment rationale India remains key market for vibrant prospects, low cost mfg base India remains a focus market for Siemens AG - the parent company of Siemens India for its dynamic domestic market and low cost manufacturing base. Contribution of India to the overall revenue has been steadily rising and would be sustained going ahead. SMARTGRID products sales targeted at 1bn euros by 2020E Siemens has taken the initiative to launch 60 new products over the long run in India as part of its global sourcing strategy of which it has already launched ten products. The company, under this strategy, is starting two Greenfield locations at Goa for Medium Voltage (RMUs) products and Relay units by Jan, 2012E. As we see, this business, currently at Rs12 bn, is expected to touch over Rs70 bn by FY20E.

Capex plan of 250 million euro for India on track Siemens confirmed that its original plan for 250mn euro capex over FY11-14E is on track towards both green field project and expansion of existing product lines. The company installed two factories in Goa (MV, RMU) for domestic and export markets as well as energy automation products (Relays EMD). It has already bought land for its new wind turbine and blade plant at Vadodara which is scheduled for commissioning by FY13E. Siemens will manufacture 2.3 MW turbines including blades for Indian market which is world's fourth largest wind market. Adding new business segment, 'Infrastructure & Cities': Siemens India is adding a new business segment - 'Infrastructure & Cities'. This will include five different verticals such as Rail systems, Mobility & Logistics (moved from industrial vertical), Low & Medium voltage products, Smart grid and Building technologies. Key Risks: - Slowdown across major verticals (Steel, Power etc.) could hamper growth prospects of the company. - Increasing competitive intensity could impact the margins of the company & hence the profitability. Outlook and valuations: A sustained focus by the German parent on Siemens India product portfolio over many years has made it the largest diversified industrial product company in the country. Edelweiss' exchange with the top management further brightens the confidence in the long term growth prospects of Siemens India. While FY11 profitability was impacted by mega projects and cost overruns, Edelweiss believes this could reverse going ahead given its focused product development. They maintain the BUY/Sector Outperformer recommendation on the stock with a target price of Rs849.

Balance sheet of Siemens Ltd.

Balance sheet Sep ' 11 Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds Secured loans Unsecured loans Total Uses of funds Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments Net current assets Current assets, loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total Notes: Book value of unquoted investments 388.46 476.96 523.64 467.58 11,096.49 9,967.42 8,485.34 6,863.69 4,775.67 8,698.61 2,397.88 3,815.04 7,858.37 6,780.31 5,961.37 4,207.89 2,109.05 1,705.04 902.32 567.79 1,998.32 1.15 828.92 1,168.25 248.90 1,354.89 1,134.78 991.10 1.23 620.90 732.76 246.52 388.46 1.32 505.28 628.18 105.70 476.97 1.40 433.93 555.76 87.01 523.65 870.12 1.49 406.38 462.26 93.29 467.59 3,815.04 0.24 0.59 1.06 1.53 68.06 3,746.98 67.43 67.43 67.43 33.72 Sep ' 10 Sep ' 09 Sep ' 08 Sep ' 07

3,409.11 2,847.87 2,000.25 1,555.68

3,476.78 2,915.89 2,068.74 1,590.92

3,476.78 2,915.89 2,068.74 1,590.92

Sep ' 11 Market value of quoted investments Contingent liabilities 396.44

Sep ' 10 Sep ' 09 Sep ' 08 Sep ' 07 272.34 0.04 162.20 0.04 147.52 0.06 157.89

Number of equity shares outstanding (Lacks) 3402.95

3371.60 3371.60 3371.60 1685.80

Profit And Loss A/C of Siemens Ltd:

Profit loss account Sep ' 11 Income Operating income Expenses Material consumed Manufacturing expenses Personnel expenses Selling expenses Administrative expenses Expenses capitalized Cost of sales Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT Tax charges Adjusted PAT Non recurring items 4,458.00 4,663.25 918.95 97.37 629.28 10,766.84 1,188.60 155.30 1,343.91 31.58 152.21 1,160.12 429.53 730.59 48.89 2,972.16 3,920.12 633.77 63.54 438.03 8,027.61 1,294.80 128.55 1,423.34 22.21 101.48 1,299.66 431.54 868.12 -40.91 2,943.52 3,485.78 551.06 35.46 362.16 7,377.98 1,018.56 288.81 1,307.37 19.25 77.78 1,210.34 387.01 823.33 221.52 2,958.09 3,865.18 448.98 47.02 413.27 7,732.52 560.81 55.79 616.60 13.27 63.73 539.60 298.44 241.15 352.17 2,296.55 3,998.93 406.73 45.38 355.20 7,102.80 629.23 105.28 734.50 11.58 49.23 673.69 277.68 396.01 200.53 11,955.44 9,322.41 8,396.53 8,293.33 7,732.02 Sep ' 10 Sep ' 09 Sep ' 08 Sep ' 07

Sep ' 11 Other non cash adjustments Reported net profit Earnings before appropriation Equity dividend Preference dividend Dividend tax Retained earnings 65.95 845.43 834.41 204.18 33.12 597.11

Sep ' 10 827.21 901.78 168.58 28.00 705.20

Sep ' 09 1,044.85 1,044.85 168.58 28.65 847.62

Sep ' 08 593.33 593.33 101.15 17.19 474.99

Sep ' 07 596.54 596.54 80.92 13.75 501.87

Cash Flow Statement of Siemens Ltd.:

Cash flow Sep ' 11 Profit before tax Net cash flow-operating activity Net cash used in investing activity Net cash used in fin. activity Net inc/dec in cash and equivalent Cash and equivalent begin of year Cash and equivalent end of year 1,274.95 10.71 197.10 -196.30 11.51 1,151.03 1,162.54 Sep ' 10 1,258.75 1,001.18 -441.30 -200.71 359.18 1,494.27 1,853.44 Sep ' 09 1,431.86 346.84 214.00 -118.75 442.09 1,002.81 1,444.90 Sep ' 08 891.77 491.69 -29.92 -97.08 364.69 548.40 913.09 Sep ' 07 874.22 -396.08 -1.74 -73.55 -475.82 939.44 463.62

Dividend pay out of Siemens

Dividend Year 2011 2010 2009 Month Nov Nov Nov Dividend (%) 300 250 250