Siemens Analysis Of Financial Statement 374f4
This document was ed by and they confirmed that they have the permission to share it. If you are author or own the copyright of this book, please report to us by using this report form. Report 3i3n4
Overview 26281t
& View Siemens Analysis Of Financial Statement as PDF for free.
More details 6y5l6z
- Words: 3,394
- Pages: 16
Siemens (Pakistan) Engineering Company Limited
Siemens (Pakistan) Engineering Company Limited
Submitted to: Ms. Ayesha Zaman Submitted by: Neelofar saeed Submitted on: Dec 15, 2010
Siemens (Pakistan) Engineering Company Limited
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 Ma’am Ayesha Zaman. Without her 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 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 (Pakistan) Engineering Company Limited For 87 years, Siemens has been active in Pakistan, where it holds leading positions in the three application fields: Energy and Environmental Care, Industry & Public Infrastructures and Healthcare. The Siemens IT Solutions and Services Group functions across all three fields. Siemens is the country’s No. 1 supplier of high-voltage grid stations, switchgear products and systems, power distribution and power transformers, and network consultancy. The company has also built a new 220kV Power Transformer factory, and is poised to meet the demand in this sector nationally and in the region. In fiscal 2007 (October 1, 2006 – September 30, 2007), sales to customers in Pakistan amounted to EUR 230 million. New orders totaled EUR 280 million. With a workforce of 1,400 employees, Siemens is one of the most important employers in the country and the largest employer of engineering graduates in the country. Directly and indirectly Siemens provides employment to more than 4000 persons across the country.
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 1910–2010 Fábrica Cornella celebrates 100th anniversary
Active in Spain for 115 years, Siemens holds a leading position in the country’s 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.
Siemens (Pakistan) Engineering Company Limited Vision “To remain market leader and technology pace setter in the engineering and electronics industry by utilizing the high-tech engineering expertise of the Siemens Group worldwide. To maintain our strong and prominent local presence”.
Mission
To realize our vision by:
Providing quality to our customers at competitive prices, to their complete satisfaction.
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 and strive for technology transfer to Pakistan through our global resources and local presence
ANALYSIS OF FINANCIAL STATEMENTS The process of examining various financial statement items with the objective of performance, and perhaps more importantly, projecting future performance and financial condition.
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
VERTICAL ANALYSIS OF BALANCE SHEET
Siemens (Pakistan) Engineering Company Limited As at September 30, 2009 Vertical Analysis Composition of Balance Sheet
Particulars
2009 2008 (Rupees in ‘000)
2009 %
2008 %
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
200,000
2000,000
82,470
82,470
0.33
0.33
624,192 6,204,531 6,828,723
624,192 5,581,595 6,205,787
2.57 25.57
2.51 22.52
6,911,193
6,288,257
28.48
25.38
175,719 22,138 197,857
87,010 19,081 106,091
0.72 0.09 0.82
0.35 0.07 0.43
13,974,641 2,031,788 907,909 1,466,696 18,381,034 18,487,125
47.37 8.62 6.90 7.78
56.40 8.20 3.66 5.91
Total liabilities
11,493,646 2,092,935 1,674,696 1,888,118 17,149,395 17,347,252
71.51
74.19
Total equity and liabilities
24,258,445
24,775,382
100
100
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
VERTICAL ANALYSIS OF BALANCE SHEET As at September 30, 2009 Vertical Analysis Composition of Balance Sheet
Particulars
2009
2008
2009
2008
Siemens (Pakistan) Engineering Company Limited (Rupees in ‘000)
%
%
Assets Non- current assets Property, plant and equipment Intangible assets Long-term receivables, deposits and prepayments Deferred tax asset
1,662,500 6,032 1,196,984
1,589,664 6,051 1,179,717
6.85 0.024 4.93
6.42 0.024 4.76
1,012,666 3,878,182
851,611 3,627,043
4.17 15.99
3.43 14.64
4,367,431 13,583,392 1,026,346
4,588,682 11,127,285 2,025,133
18.00 55.99 4.23
18.52 44.91 8.17
1,403,094 20,380,263
3,407,239 21,148,339
5.78 84.01
13.75 85.36
24,258,445
24,775,382
100
100
Current assets Inventories Trade receivables Loans and advances, deposits, prepayments and other receivables Cash and bank balances
Total assets
HORIZONTAL ANALYSIS OF BALANCE SHEET As at September 30, 2009 Horizontal Analysis Composition of Balance Sheet
Particulars Share capital and reserves Share capital
2009 2008 (Rupees in ‘000)
2009 vs 2008 %
Siemens (Pakistan) Engineering Company Limited • Authorized 20,000,000 (2008: 20,000,000) Ordinary shares of Rs 10 each • Issued, subscribed and fully paid-up
200,000
2000,000
82,470
82,470
624,192 6,204,531 6,828,723
624,192 5,581,595 6,205,787
0 11.16
6,911,193
6,288,257
9.90
175,719 22,138 197,857
87,010 19,081 106,091
101.9 16.02 86.50
Total liabilities
11,493,646 2,092,935 1,674,696 1,888,118 17,149,395 17,347,252
13,974,641 2,031,788 907,909 1,466,696 18,381,034 18,487,125
(17.75) 3.00 84.45 28.73 (6.70) (6.16)
Total equity and liabilities
24,258,445
24,775,382
(2.09)
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
0
HORIZONTAL ANALYSIS OF BALANCE SHEET As at September 30, 2009 Horizontal Analysis Composition of Balance Sheet
Particulars
2009 2008 (Rupees in ‘000)
2009 vs 2008 %
Assets Non- current assets Property, plant and equipment Intangible assets Long-term receivables, deposits and prepayments Deferred tax asset
1,662,500 6,032 1,196,984
1,589,664 6,051 1,179,717
4.58 (0.31) 1.46
1,012,666 3,878,182
851,611 3,627,043
18.91 6.92
Siemens (Pakistan) Engineering Company Limited Current assets Inventories Trade receivables Loans and advances, deposits, prepayments and other receivables Cash and bank balances
Total assets
4,367,431 13,583,392 1,026,346
4,588,682 11,127,285 2,025,133
(4.82) 22.07 (49.31)
1,403,094 20,380,263
3,407,239 21,148,339
(58.82) (3.63)
24,258,445
24,775,382
(2.09)
VERTICAL ANALYSIS OF PROFIT AND LOSS For the year ended September 30, 2009 Vertical Analysis Composition of P&L
Particulars Net sales and services Cost of sales Gross profit Commission and allowances earned
Marketing and selling expenses General istration expenses Other operating income Operating profit Financial income
2009 2008 (Rupees in ‘000)
2009 %
2008 %
36,149,390 (32,164,974 ) 3,984,416
26,880742 (22,850,583)
100
100
(88.9)
(85.0)
4,030,159
11.02
14.99
186,822 4,171,238
161,395 4,191,554
0.51 11.54
0.60 15.59
(1,308,787) (542,949) 7,644 (1,844,092) 2,327,146
(1,132,642) (535,643) 76,696 (1,591,589) 2,599,965
(3.62) (1.50) 0.02 (5.10) 6.43
(4.21) (1.99) 0.28 (5.91) 9.67
153,937
218,030
0.42
0.81
Siemens (Pakistan) Engineering Company Limited Financial expenses Net finance costs Profit before tax
(336,644) (182,707) 2,144,439
(253,792) (35,762) 2,564,203
(0.93) (0.50) 5.93
(0.94) (0.133) 9.53
Income tax expense Profit for the year
(779,270) 1,365,169
(885,135) 1,679,068
(2.15) 3.77
(3.29) 6.24
165.53
203.60
Basic and Diluted earning per share (Rupees)
HORIZONTAL ANALYSIS OF PROFIT AND LOSS For the year ended September 30, 2009 Horizontal Analysis Composition of P&L
Particulars Net sales and services Cost of sales Gross profit Commission and allowances earned
Marketing and selling expenses General istration expenses Other operating income Operating profit Financial income Financial expenses Net finance costs Profit before tax Income tax expense
2009 2008 (Rupees in ‘000)
2009 vs 2008 %
36,149,390 (32,164,974 ) 3,984,416
26,880742 (22,850,583)
34.48 40.76
4,030,159
(1.14)
186,822 4,171,238
161,395 4,191,554
15.75 (0.48)
(1,308,787) (542,949) 7,644 (1,844,092) 2,327,146
(1,132,642) (535,643) 76,696 (1,591,589) 2,599,965
15.55 1.36 (90.03) 15.86 (10.49)
153,937 (336,644) (182,707) 2,144,439
218,030 (253,792) (35,762) 2,564,203
(29.40) 32.65 410.90 (16.37)
(779,270)
(885,135)
(11.96)
Siemens (Pakistan) Engineering Company Limited Profit for the year
1,365,169
1,679,068
165.53
203.60
Basic and Diluted earning per share (Rupees)
(18.69)
RATIO ANALYSIS Particulars
Formulae
2009
Current assets Current liabilities
20,380,263 = 1.18 17,149,395
b) Quick Ratio
Current assets- inventory
20,380,263-4,367,431
21,148,339-4,588,682
c) Working Capital
Current assets – Current liabilities
20,380,263-17,149,395
21,148,339-8,381,034
d) Debt to total assets ratio
Total debts Total assets
17,347,252 = 0.71 24,258,445
18,487,125 = 0.74 24,775,382
e) Debt to Equity ratio
Total debt Total S.H.Equity
17,347,252 = 2.51 6,911,193
18,487,125 = 2.93 6,288,257
f) Long term debt to equity ratio
Long term debt Total S.H.Equity
197,857 = 0.028 6,911,193
106,091 = 0.016 6,288,257
Inventory of finished goods
Sales
36,149,390=8.27 4,367,431
26,880,742= 5.85 4,588,682
h) Fixed assets turnover
Sales Fixed Assets
36,149,390 = 9.32 3,878,182
26,880,742 = 7.411 3,627,043
i)
Total assets turnover
Sales Total Assets
36,149,390 = 1.49 24,258,445
26,880,742 =1.084 24,775,382
j)
Gross profit margin
Sales- COGS Sales
36,149,390-32,164,974
26,880,742-22,850,583
= 0.11
= 0.149
a) Current Ratio
g) Inventory turnover
Current liabilities
17,149,395 = 0.93
= 3,230,868
36,149,390
2008 21,148,339 =1.15 18,381,034 18,381,034 = 0.90
=2,767,305
26,880,742
Siemens (Pakistan) Engineering Company Limited k) Operating profit margin
EBIT Sales
2,144,439 = 0.059 36,149,390
2,564,203 = 0.095 26,880,742
Net Income Sales
1,365,169 = 0.037 36,149,390
1,679,068 = 0.06 26,880,742
m) Return on total assets(ROA)
Net Income Total Assets
1,365,169 = 0.056 24,258,445
1,679,068 = 0.06 24,775,382
n) Return on equity (ROE)
Net Income Total SHE
1,365,169 = 0.19 6,911,193
1,679,068 = 0.26 6,288,257
o) Network
Equity Total assets
6,911,193 24,258,445
6,288,257 24,775,382
=0.28
=0.25
l)
Net profit margin
p) Return on capital employed
Profit before tax
2,144,439
2,564,203
Total assets-current liabilities
24,258,445-17149,395
24,775,382-18,381,034
=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.
c) Working Capital ratio
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.
d) Debt to total assets ratio Debt to total assets ratio of Siemens is slightly decreased from 0.74 to 0.71 in Financial Year 2009 as compare to Financial Year 2008. This means Siemens debts as compare to its total assets decrease in Financial Year 2009.
Siemens (Pakistan) Engineering Company Limited Currently Siemens has Rs.71 debts over each Rs.1000 of its Total Assets.
e) Debt to Equity ratio Debt to Equity ratio of Siemens is decreased from 2.93 to 2.51 in Financial Year 2009 as compare to Financial Year 2008. This means Siemens debts as compare to its Equity decreases in Financial Year 2009.
f) Long term debt to equity ratio Long term debt to Equity ratio of Siemens is slightly increased from 0.016 to 0.028 in Financial Year 2009 as compare to Financial Year 2008. This means Siemens Long term debts as compare to its Equity increases in Financial Year 2009. Currently Siemens has Rs.160 long term debts over each Rs.1000 of its Equity.
g) Inventory turnover ratio Inventory turnover ratio of Siemens is increased from 5.85 to 8.27 in Financial Year 2009 as compare to Financial Year 2008. This means Siemens Sales over its Inventories increases in Financial Year 2009.
h) Fixed assets turnover Fixed Assets turnover ratio of Siemens is increased from 7.411 to 9.32 in Financial Year 2009 as compare to Financial Year 2008. This means Siemens Sales over its Fixed Assets increases in Financial Year 2009. In Financial year 2009 Siemens made Sales of Rs.932 over each Rs.1000 of its fixed
assets.
i) Total assets turnover Total Assets turnover ratio of Siemens is increased from 0.084 to 0.49 in Financial Year 2009 as compare to Financial Year 2008. This means Siemens Sales over its Total Assets increases in Financial Year 2009. In Financial year 2009 Siemens made Sales of Rs.490 over each Rs.1000 of its Total
assets.
j) Gross profit margin Gross profit margin of Siemens is decreased from 0.149 to 0.11 in Financial Year 2009 as compare to Financial Year 2008. This means Siemens Cost of Goods Sold expense increases in Financial Year 2009. In Financial year 2009 Siemens earned Rs.110 as Gross profit on Sales of Rs.1000.
k) Operating profit margin Operating profit margin of Siemens is decreased from 0.095 to 0.059 in Financial Year 2009 as compare to Financial Year 2008. This means Siemens Operating Expenses decreases in Financial Year 2009. In Financial year 2009 Siemens earned Rs.59 as Operating profit on Sales of Rs.1000.
l) Net profit margin
Siemens (Pakistan) Engineering Company Limited Operating profit margin of Siemens is slightly decreased from 0.06 to 0.037 in Financial Year 2009 as compare to Financial Year 2008. This means Siemens Operating Expenses increases in Financial Year 2009. In Financial year 2009 Siemens earned Rs.37 as Operating Profit on Sales of Rs.1000.
m)Return on total assets(ROA) Return on total assets (ROA) of Siemens is slightly decreased from 0.06 to 0.056 in Financial Year 2009 as compare to Financial Year 2008. This means Siemens Return on its Total Assets employed decreases in Financial Year 2009. In Financial year 2009 Siemens earned Rs.56 as Net Income on Rs.1000 of its Total Assets employed.
n) Return on equity (ROE) Return on Equity (ROE) of Siemens is decreased from 0.26 to 0.19 in Financial Year 2009 as compare to Financial Year 2008. This means Siemens return on its Equity employed decreases in Financial Year 2009. In Financial year 2009 Siemens earned Rs.190 as Net Income on Rs.1000 of its Equity employed.
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.
p) Return on Capital Employed ratio Return on capital employed of Siemens is decreased from 0.401 to 0.301 in Financial Year 2009 as compare to Financial Year 2008. This means Siemens return on its capital employed decreases in Financial Year 2009.
Interpretation of VERTICAL ANALYSIS OF BALANCE SHEET The statement presented for analysis belongs to Siemens (Pakistan) Engineering Co. Ltd. and the financial statement under consideration is Balance Sheet, presenting financial position till Sep, 2009. Finding such analysis is that the balance sheet shows that its total assets are 84.01% in 2009and 85.36% were in 2008, so its current assets decrease in 2009. Noncurrent assets are 15.99% in 2009 and 14.64 in 2008, which shows its fixed assets are increasing in 2009.
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.
Siemens (Pakistan) Engineering Company Limited
Interpretation of HORIZONTAL ANALYSIS OF BALANCE SHEET The statement presented for analysis belongs to Siemens (Pakistan) Engineering Co. Ltd. and the financial statement under consideration is Balance Sheet, presenting financial position till Sep, 2009. Finding such analysis is that the balance sheet shows that the current assets are decreasing by 3.63% and its noncurrent assets are increasing by 6.92%. Liabilities portion shows that its current liabilities are decreasing by 6.70% and its total noncurrent assets are increasing by 86.50% but deferred tax is increasing 18.91% and equity portion shows the total equity is increasing 9.90%. So the balance sheet shows its total assets are decreasing 2.09% and total liabilities & equities are also decreasing 2.09% as well.
Interpretation of VERTICAL ANALYSIS OF PROFIT AND LOSS The statement presented for analysis belongs to Siemens (Pakistan) Engineering Co. Ltd. and the financial statement under consideration is Income Statement, presenting financial position till Sep, 2009.Finding such analysis is that the income statement shows that according to the operating revenue in 2009. Its cost of revenue is increased 88.9% as compare to 2008 it was 85.0% and gross operating profit is decreased 11.02% in 2009 because in 2008 it was 14.99%, general istration expenses is 1.50% in 2009 its decreasing in 2009, in 2008 it was 1.99%. EBT is 5.93% in 2009 and 9.53% in 2008 its decreasing in 2009. Income tax is 2.15% it also decreased, net income from continuing operation is 3.77% in 2009 it decreases so the net income from total operations is 3.77% in 2009 and total net income is 6.24% in 2008. It decreased in 2009.
Interpretation of horizontal ANALYSIS OF PROFIT AND LOSS The statement presented for analysis belongs to Siemens (Pakistan) Engineering Co. Ltd. and the financial statement under consideration is Income Statement, presenting financial position till Sep, 2009.Finding such analysis is that the income statement shows that according to the operating revenue in 2009 it is increasing from 34.48%. Its cost of revenue is increased 40.76% and gross operating profit is decreased by 1.14% in 2009. General istration expense is 1.36% increased in 2009. EBT is 16.37% decreased in 2009. Other operating income is 90.03% it’s decreasing. Income tax is 11.96% it also decreased; Net Income from continuing operation is 18.69% in 2009 it decreases.
Siemens (Pakistan) Engineering Company Limited
Analysis of cash flow statement A Siemens Cash and cash equivalent decreases from Rs.2, 499,330 to Rs. (271,602) in Financial Year 2009 as compared to Financial Year 2008.
Cash Flow From Operating Activities: The Net Cash Flow from Operating Activities in 2009 decreases by a great, extent as compared to 2008 (from Rs. 2,.727,427 to Rs.-1,871,088). The reasons for decreasing Net Cash Flow from Operating Activities is that the cash generated from Operation decreased from Rs. 4,222,784 to Rs. -834,156 and the financial expenses, payment to worker’s profit participation fund and payment to gratuity fund increased by very large percentage as compared to previous year 2008 and income tax decreases from Rs. 1,097,239 to Rs. 518,903. These are the factors which decreased cash flow of 2009. This is negative sign for the company because net cash flow from operating activities going down and company is decreasing its operating activities by increasing sale of goods and services and cost of sales as well.
Cash Flow From Investing Activities: In financial year 2009 Net cash outflow Rs. (157,611,000) is from Investing Activities. While in Financial Year 2008 Net cash inflow Rs. (109,946,000) is from Investing Activities. Capital expenditure increased than year 2008, is the main reason and is responsible for negative net cash outflow from investing activities and no dividend income. Proceeds from sale of property, plant and equipment decreased from Rs. 22,978 to Rs. 11,958. Siemens needs more investment in acquiring assets or other business to get high return or be pioneer in its sector.
Cash Flow From Financing Activities: The Cash Flow from financing activities decreases in 2009 because dividend paid is 742,233 in 2009 and 742,233 in 2008 which shows no changes in no. of stock of Siemens. There is no transaction of shares of Siemens. There is no short term loan in 2009 but in 2008 there was Rs. 330,646 which may takes changes in financing activities.
Siemens (Pakistan) Engineering Company Limited
Submitted to: Ms. Ayesha Zaman Submitted by: Neelofar saeed Submitted on: Dec 15, 2010
Siemens (Pakistan) Engineering Company Limited
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 Ma’am Ayesha Zaman. Without her 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 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 (Pakistan) Engineering Company Limited For 87 years, Siemens has been active in Pakistan, where it holds leading positions in the three application fields: Energy and Environmental Care, Industry & Public Infrastructures and Healthcare. The Siemens IT Solutions and Services Group functions across all three fields. Siemens is the country’s No. 1 supplier of high-voltage grid stations, switchgear products and systems, power distribution and power transformers, and network consultancy. The company has also built a new 220kV Power Transformer factory, and is poised to meet the demand in this sector nationally and in the region. In fiscal 2007 (October 1, 2006 – September 30, 2007), sales to customers in Pakistan amounted to EUR 230 million. New orders totaled EUR 280 million. With a workforce of 1,400 employees, Siemens is one of the most important employers in the country and the largest employer of engineering graduates in the country. Directly and indirectly Siemens provides employment to more than 4000 persons across the country.
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 1910–2010 Fábrica Cornella celebrates 100th anniversary
Active in Spain for 115 years, Siemens holds a leading position in the country’s 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.
Siemens (Pakistan) Engineering Company Limited Vision “To remain market leader and technology pace setter in the engineering and electronics industry by utilizing the high-tech engineering expertise of the Siemens Group worldwide. To maintain our strong and prominent local presence”.
Mission
To realize our vision by:
Providing quality to our customers at competitive prices, to their complete satisfaction.
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 and strive for technology transfer to Pakistan through our global resources and local presence
ANALYSIS OF FINANCIAL STATEMENTS The process of examining various financial statement items with the objective of performance, and perhaps more importantly, projecting future performance and financial condition.
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
VERTICAL ANALYSIS OF BALANCE SHEET
Siemens (Pakistan) Engineering Company Limited As at September 30, 2009 Vertical Analysis Composition of Balance Sheet
Particulars
2009 2008 (Rupees in ‘000)
2009 %
2008 %
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
200,000
2000,000
82,470
82,470
0.33
0.33
624,192 6,204,531 6,828,723
624,192 5,581,595 6,205,787
2.57 25.57
2.51 22.52
6,911,193
6,288,257
28.48
25.38
175,719 22,138 197,857
87,010 19,081 106,091
0.72 0.09 0.82
0.35 0.07 0.43
13,974,641 2,031,788 907,909 1,466,696 18,381,034 18,487,125
47.37 8.62 6.90 7.78
56.40 8.20 3.66 5.91
Total liabilities
11,493,646 2,092,935 1,674,696 1,888,118 17,149,395 17,347,252
71.51
74.19
Total equity and liabilities
24,258,445
24,775,382
100
100
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
VERTICAL ANALYSIS OF BALANCE SHEET As at September 30, 2009 Vertical Analysis Composition of Balance Sheet
Particulars
2009
2008
2009
2008
Siemens (Pakistan) Engineering Company Limited (Rupees in ‘000)
%
%
Assets Non- current assets Property, plant and equipment Intangible assets Long-term receivables, deposits and prepayments Deferred tax asset
1,662,500 6,032 1,196,984
1,589,664 6,051 1,179,717
6.85 0.024 4.93
6.42 0.024 4.76
1,012,666 3,878,182
851,611 3,627,043
4.17 15.99
3.43 14.64
4,367,431 13,583,392 1,026,346
4,588,682 11,127,285 2,025,133
18.00 55.99 4.23
18.52 44.91 8.17
1,403,094 20,380,263
3,407,239 21,148,339
5.78 84.01
13.75 85.36
24,258,445
24,775,382
100
100
Current assets Inventories Trade receivables Loans and advances, deposits, prepayments and other receivables Cash and bank balances
Total assets
HORIZONTAL ANALYSIS OF BALANCE SHEET As at September 30, 2009 Horizontal Analysis Composition of Balance Sheet
Particulars Share capital and reserves Share capital
2009 2008 (Rupees in ‘000)
2009 vs 2008 %
Siemens (Pakistan) Engineering Company Limited • Authorized 20,000,000 (2008: 20,000,000) Ordinary shares of Rs 10 each • Issued, subscribed and fully paid-up
200,000
2000,000
82,470
82,470
624,192 6,204,531 6,828,723
624,192 5,581,595 6,205,787
0 11.16
6,911,193
6,288,257
9.90
175,719 22,138 197,857
87,010 19,081 106,091
101.9 16.02 86.50
Total liabilities
11,493,646 2,092,935 1,674,696 1,888,118 17,149,395 17,347,252
13,974,641 2,031,788 907,909 1,466,696 18,381,034 18,487,125
(17.75) 3.00 84.45 28.73 (6.70) (6.16)
Total equity and liabilities
24,258,445
24,775,382
(2.09)
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
0
HORIZONTAL ANALYSIS OF BALANCE SHEET As at September 30, 2009 Horizontal Analysis Composition of Balance Sheet
Particulars
2009 2008 (Rupees in ‘000)
2009 vs 2008 %
Assets Non- current assets Property, plant and equipment Intangible assets Long-term receivables, deposits and prepayments Deferred tax asset
1,662,500 6,032 1,196,984
1,589,664 6,051 1,179,717
4.58 (0.31) 1.46
1,012,666 3,878,182
851,611 3,627,043
18.91 6.92
Siemens (Pakistan) Engineering Company Limited Current assets Inventories Trade receivables Loans and advances, deposits, prepayments and other receivables Cash and bank balances
Total assets
4,367,431 13,583,392 1,026,346
4,588,682 11,127,285 2,025,133
(4.82) 22.07 (49.31)
1,403,094 20,380,263
3,407,239 21,148,339
(58.82) (3.63)
24,258,445
24,775,382
(2.09)
VERTICAL ANALYSIS OF PROFIT AND LOSS For the year ended September 30, 2009 Vertical Analysis Composition of P&L
Particulars Net sales and services Cost of sales Gross profit Commission and allowances earned
Marketing and selling expenses General istration expenses Other operating income Operating profit Financial income
2009 2008 (Rupees in ‘000)
2009 %
2008 %
36,149,390 (32,164,974 ) 3,984,416
26,880742 (22,850,583)
100
100
(88.9)
(85.0)
4,030,159
11.02
14.99
186,822 4,171,238
161,395 4,191,554
0.51 11.54
0.60 15.59
(1,308,787) (542,949) 7,644 (1,844,092) 2,327,146
(1,132,642) (535,643) 76,696 (1,591,589) 2,599,965
(3.62) (1.50) 0.02 (5.10) 6.43
(4.21) (1.99) 0.28 (5.91) 9.67
153,937
218,030
0.42
0.81
Siemens (Pakistan) Engineering Company Limited Financial expenses Net finance costs Profit before tax
(336,644) (182,707) 2,144,439
(253,792) (35,762) 2,564,203
(0.93) (0.50) 5.93
(0.94) (0.133) 9.53
Income tax expense Profit for the year
(779,270) 1,365,169
(885,135) 1,679,068
(2.15) 3.77
(3.29) 6.24
165.53
203.60
Basic and Diluted earning per share (Rupees)
HORIZONTAL ANALYSIS OF PROFIT AND LOSS For the year ended September 30, 2009 Horizontal Analysis Composition of P&L
Particulars Net sales and services Cost of sales Gross profit Commission and allowances earned
Marketing and selling expenses General istration expenses Other operating income Operating profit Financial income Financial expenses Net finance costs Profit before tax Income tax expense
2009 2008 (Rupees in ‘000)
2009 vs 2008 %
36,149,390 (32,164,974 ) 3,984,416
26,880742 (22,850,583)
34.48 40.76
4,030,159
(1.14)
186,822 4,171,238
161,395 4,191,554
15.75 (0.48)
(1,308,787) (542,949) 7,644 (1,844,092) 2,327,146
(1,132,642) (535,643) 76,696 (1,591,589) 2,599,965
15.55 1.36 (90.03) 15.86 (10.49)
153,937 (336,644) (182,707) 2,144,439
218,030 (253,792) (35,762) 2,564,203
(29.40) 32.65 410.90 (16.37)
(779,270)
(885,135)
(11.96)
Siemens (Pakistan) Engineering Company Limited Profit for the year
1,365,169
1,679,068
165.53
203.60
Basic and Diluted earning per share (Rupees)
(18.69)
RATIO ANALYSIS Particulars
Formulae
2009
Current assets Current liabilities
20,380,263 = 1.18 17,149,395
b) Quick Ratio
Current assets- inventory
20,380,263-4,367,431
21,148,339-4,588,682
c) Working Capital
Current assets – Current liabilities
20,380,263-17,149,395
21,148,339-8,381,034
d) Debt to total assets ratio
Total debts Total assets
17,347,252 = 0.71 24,258,445
18,487,125 = 0.74 24,775,382
e) Debt to Equity ratio
Total debt Total S.H.Equity
17,347,252 = 2.51 6,911,193
18,487,125 = 2.93 6,288,257
f) Long term debt to equity ratio
Long term debt Total S.H.Equity
197,857 = 0.028 6,911,193
106,091 = 0.016 6,288,257
Inventory of finished goods
Sales
36,149,390=8.27 4,367,431
26,880,742= 5.85 4,588,682
h) Fixed assets turnover
Sales Fixed Assets
36,149,390 = 9.32 3,878,182
26,880,742 = 7.411 3,627,043
i)
Total assets turnover
Sales Total Assets
36,149,390 = 1.49 24,258,445
26,880,742 =1.084 24,775,382
j)
Gross profit margin
Sales- COGS Sales
36,149,390-32,164,974
26,880,742-22,850,583
= 0.11
= 0.149
a) Current Ratio
g) Inventory turnover
Current liabilities
17,149,395 = 0.93
= 3,230,868
36,149,390
2008 21,148,339 =1.15 18,381,034 18,381,034 = 0.90
=2,767,305
26,880,742
Siemens (Pakistan) Engineering Company Limited k) Operating profit margin
EBIT Sales
2,144,439 = 0.059 36,149,390
2,564,203 = 0.095 26,880,742
Net Income Sales
1,365,169 = 0.037 36,149,390
1,679,068 = 0.06 26,880,742
m) Return on total assets(ROA)
Net Income Total Assets
1,365,169 = 0.056 24,258,445
1,679,068 = 0.06 24,775,382
n) Return on equity (ROE)
Net Income Total SHE
1,365,169 = 0.19 6,911,193
1,679,068 = 0.26 6,288,257
o) Network
Equity Total assets
6,911,193 24,258,445
6,288,257 24,775,382
=0.28
=0.25
l)
Net profit margin
p) Return on capital employed
Profit before tax
2,144,439
2,564,203
Total assets-current liabilities
24,258,445-17149,395
24,775,382-18,381,034
=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.
c) Working Capital ratio
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.
d) Debt to total assets ratio Debt to total assets ratio of Siemens is slightly decreased from 0.74 to 0.71 in Financial Year 2009 as compare to Financial Year 2008. This means Siemens debts as compare to its total assets decrease in Financial Year 2009.
Siemens (Pakistan) Engineering Company Limited Currently Siemens has Rs.71 debts over each Rs.1000 of its Total Assets.
e) Debt to Equity ratio Debt to Equity ratio of Siemens is decreased from 2.93 to 2.51 in Financial Year 2009 as compare to Financial Year 2008. This means Siemens debts as compare to its Equity decreases in Financial Year 2009.
f) Long term debt to equity ratio Long term debt to Equity ratio of Siemens is slightly increased from 0.016 to 0.028 in Financial Year 2009 as compare to Financial Year 2008. This means Siemens Long term debts as compare to its Equity increases in Financial Year 2009. Currently Siemens has Rs.160 long term debts over each Rs.1000 of its Equity.
g) Inventory turnover ratio Inventory turnover ratio of Siemens is increased from 5.85 to 8.27 in Financial Year 2009 as compare to Financial Year 2008. This means Siemens Sales over its Inventories increases in Financial Year 2009.
h) Fixed assets turnover Fixed Assets turnover ratio of Siemens is increased from 7.411 to 9.32 in Financial Year 2009 as compare to Financial Year 2008. This means Siemens Sales over its Fixed Assets increases in Financial Year 2009. In Financial year 2009 Siemens made Sales of Rs.932 over each Rs.1000 of its fixed
assets.
i) Total assets turnover Total Assets turnover ratio of Siemens is increased from 0.084 to 0.49 in Financial Year 2009 as compare to Financial Year 2008. This means Siemens Sales over its Total Assets increases in Financial Year 2009. In Financial year 2009 Siemens made Sales of Rs.490 over each Rs.1000 of its Total
assets.
j) Gross profit margin Gross profit margin of Siemens is decreased from 0.149 to 0.11 in Financial Year 2009 as compare to Financial Year 2008. This means Siemens Cost of Goods Sold expense increases in Financial Year 2009. In Financial year 2009 Siemens earned Rs.110 as Gross profit on Sales of Rs.1000.
k) Operating profit margin Operating profit margin of Siemens is decreased from 0.095 to 0.059 in Financial Year 2009 as compare to Financial Year 2008. This means Siemens Operating Expenses decreases in Financial Year 2009. In Financial year 2009 Siemens earned Rs.59 as Operating profit on Sales of Rs.1000.
l) Net profit margin
Siemens (Pakistan) Engineering Company Limited Operating profit margin of Siemens is slightly decreased from 0.06 to 0.037 in Financial Year 2009 as compare to Financial Year 2008. This means Siemens Operating Expenses increases in Financial Year 2009. In Financial year 2009 Siemens earned Rs.37 as Operating Profit on Sales of Rs.1000.
m)Return on total assets(ROA) Return on total assets (ROA) of Siemens is slightly decreased from 0.06 to 0.056 in Financial Year 2009 as compare to Financial Year 2008. This means Siemens Return on its Total Assets employed decreases in Financial Year 2009. In Financial year 2009 Siemens earned Rs.56 as Net Income on Rs.1000 of its Total Assets employed.
n) Return on equity (ROE) Return on Equity (ROE) of Siemens is decreased from 0.26 to 0.19 in Financial Year 2009 as compare to Financial Year 2008. This means Siemens return on its Equity employed decreases in Financial Year 2009. In Financial year 2009 Siemens earned Rs.190 as Net Income on Rs.1000 of its Equity employed.
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.
p) Return on Capital Employed ratio Return on capital employed of Siemens is decreased from 0.401 to 0.301 in Financial Year 2009 as compare to Financial Year 2008. This means Siemens return on its capital employed decreases in Financial Year 2009.
Interpretation of VERTICAL ANALYSIS OF BALANCE SHEET The statement presented for analysis belongs to Siemens (Pakistan) Engineering Co. Ltd. and the financial statement under consideration is Balance Sheet, presenting financial position till Sep, 2009. Finding such analysis is that the balance sheet shows that its total assets are 84.01% in 2009and 85.36% were in 2008, so its current assets decrease in 2009. Noncurrent assets are 15.99% in 2009 and 14.64 in 2008, which shows its fixed assets are increasing in 2009.
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.
Siemens (Pakistan) Engineering Company Limited
Interpretation of HORIZONTAL ANALYSIS OF BALANCE SHEET The statement presented for analysis belongs to Siemens (Pakistan) Engineering Co. Ltd. and the financial statement under consideration is Balance Sheet, presenting financial position till Sep, 2009. Finding such analysis is that the balance sheet shows that the current assets are decreasing by 3.63% and its noncurrent assets are increasing by 6.92%. Liabilities portion shows that its current liabilities are decreasing by 6.70% and its total noncurrent assets are increasing by 86.50% but deferred tax is increasing 18.91% and equity portion shows the total equity is increasing 9.90%. So the balance sheet shows its total assets are decreasing 2.09% and total liabilities & equities are also decreasing 2.09% as well.
Interpretation of VERTICAL ANALYSIS OF PROFIT AND LOSS The statement presented for analysis belongs to Siemens (Pakistan) Engineering Co. Ltd. and the financial statement under consideration is Income Statement, presenting financial position till Sep, 2009.Finding such analysis is that the income statement shows that according to the operating revenue in 2009. Its cost of revenue is increased 88.9% as compare to 2008 it was 85.0% and gross operating profit is decreased 11.02% in 2009 because in 2008 it was 14.99%, general istration expenses is 1.50% in 2009 its decreasing in 2009, in 2008 it was 1.99%. EBT is 5.93% in 2009 and 9.53% in 2008 its decreasing in 2009. Income tax is 2.15% it also decreased, net income from continuing operation is 3.77% in 2009 it decreases so the net income from total operations is 3.77% in 2009 and total net income is 6.24% in 2008. It decreased in 2009.
Interpretation of horizontal ANALYSIS OF PROFIT AND LOSS The statement presented for analysis belongs to Siemens (Pakistan) Engineering Co. Ltd. and the financial statement under consideration is Income Statement, presenting financial position till Sep, 2009.Finding such analysis is that the income statement shows that according to the operating revenue in 2009 it is increasing from 34.48%. Its cost of revenue is increased 40.76% and gross operating profit is decreased by 1.14% in 2009. General istration expense is 1.36% increased in 2009. EBT is 16.37% decreased in 2009. Other operating income is 90.03% it’s decreasing. Income tax is 11.96% it also decreased; Net Income from continuing operation is 18.69% in 2009 it decreases.
Siemens (Pakistan) Engineering Company Limited
Analysis of cash flow statement A Siemens Cash and cash equivalent decreases from Rs.2, 499,330 to Rs. (271,602) in Financial Year 2009 as compared to Financial Year 2008.
Cash Flow From Operating Activities: The Net Cash Flow from Operating Activities in 2009 decreases by a great, extent as compared to 2008 (from Rs. 2,.727,427 to Rs.-1,871,088). The reasons for decreasing Net Cash Flow from Operating Activities is that the cash generated from Operation decreased from Rs. 4,222,784 to Rs. -834,156 and the financial expenses, payment to worker’s profit participation fund and payment to gratuity fund increased by very large percentage as compared to previous year 2008 and income tax decreases from Rs. 1,097,239 to Rs. 518,903. These are the factors which decreased cash flow of 2009. This is negative sign for the company because net cash flow from operating activities going down and company is decreasing its operating activities by increasing sale of goods and services and cost of sales as well.
Cash Flow From Investing Activities: In financial year 2009 Net cash outflow Rs. (157,611,000) is from Investing Activities. While in Financial Year 2008 Net cash inflow Rs. (109,946,000) is from Investing Activities. Capital expenditure increased than year 2008, is the main reason and is responsible for negative net cash outflow from investing activities and no dividend income. Proceeds from sale of property, plant and equipment decreased from Rs. 22,978 to Rs. 11,958. Siemens needs more investment in acquiring assets or other business to get high return or be pioneer in its sector.
Cash Flow From Financing Activities: The Cash Flow from financing activities decreases in 2009 because dividend paid is 742,233 in 2009 and 742,233 in 2008 which shows no changes in no. of stock of Siemens. There is no transaction of shares of Siemens. There is no short term loan in 2009 but in 2008 there was Rs. 330,646 which may takes changes in financing activities.
Related Documents 3h463d
Siemens Analysis Of Financial Statement 374f4
March 2023 0
Financial Statement Analysis Of Dabur p1l43
December 2019 75
Financial Statement Analysis Of Grameenphone 6a2gr
November 2019 65
Financial Statement Analysis Of Ogdcl 451kd
December 2021 0
Financial Statement Analysis 4d4l6x
December 2019 37
6 Financial Statement Analysis 5d654t
January 2021 0More Documents from "Neelofar Saeed" 5h38a
Siemens Analysis Of Financial Statement 374f4
March 2023 0
Ratio Analysis Of Ptcl 38424u
December 2019 47
Business Research Vs Management Research 4e2xk
November 2019 76
How To Apply Bcg Matrix To Your Company.pdf 6s3415
November 2019 143
November 2019 221
