Working Capital Management of Siemens

A PROJECT REPORT ON
WORKING CAPITAL MANAGEMENT

OF SIEMENS LTD, AURANGABAD
SUBMITTED TO Prof. Dr. V.K. DESHPANDE
SUBMITTED BY MR. RAKESH N. DHOPTE 2008-2009
SSGMCE, DBAR Shri Sant Gajanan Maharaj College of Engineering & Department of Business Administration and Research, Shegaon
ACKNOWLEGEMENT
It is my pleasure to place on record my sincere gratitude towards Mr. Pravin Kulkarni (HR Manager) & my guide Mr. Manoj Dhok (Commercial Dept.) SIEMENS Limited, who spent his precious time providing continuous ideas and expert guidance to my Report work. It was his direction and encouragement at every moment and step that motivated me to steer the research work confidently and successfully. We are also thankful to our Venerable H.O.D. Prof V. K. Deshpande, whose encouragement, moral support provide the valuable guidance, which has been a source of inspiration to us. I especially thankful to Mr. Gaurav Bhasin, Mr. Jyotirmoy Datta, Commercial staff & All Department of SIEMENS Limited that have provided me valuable guidance, which is helpful to fulfillment my Project Report I am also thankful to my friends who directly or indirectly helped me lot. . Last but not the Least, I would like to pray our divine source of inspiration Shri Sant Gajanan Maharaj whose blessing always back us.
Mr. Rakesh Dhopte MBA (Finance)
This dimension aspect of his working capital has been more clearly and precisely Explains by the following diagram. Profitability, Risk & Liquidity Dimension I
Dimension III
Dimension II Composition & Level of current assets
Composition & level Of current Liabilities
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 liquidity is important at it refer to the short-term financial strength of company. It is very important to have proper balance in regard to the liquidity of the firm.
Table I - Statement of Working Capital Requirement
Particulars
A) Current Assets: i) Inventories ii) Sundry Debtors iii) Cash & Bank Balance iv) Other Current Assets v) Loans & Advances B) Current Liabilities: i) Current Liabilities ii) Provisions
2002-03 1,215,892 3,559,062 2,584,729 1,753,370 9,113,053 6,532,933 511,492 7,044,425
2003-04 1,698,235 4,172,586 4,309,852 1,802,032 22,982,705 8,552,122 632,131 9,184,253 2,168,452 -2,168,452
2004-05 3,283,909 7,319,804 4,855,139 1,798 1,809,396 17,270,127 12,759,018 2,468,701 15,227,719 2,042,408 -2,042,408
2005-06 4,842,246 11,097,716 9,394,447 3,597 4,164,082 29,502,088 24,275,052 3,415,310 27,690,362 1,811,726 -1,811,726
Working Capital (A-B) Add: Provision for Contingencies Net Working Capital Requirement
2,068,628 -2,068,628
Graphical Representation of Working Capital Requirement

Working Capital Requirement 2,200,000 Working Capital (in Rs.) 2,100,000 2,000,000 1,900,000 1,800,000 1,700,000 1,600,000 2002-03 2002-04 2002-05 2002-06 Year Working Capital Requirement
Table II - Statement of Changes in Working Capital
Particulars
Previous Year
Current Year
Effect on Working Capital Increase Decrease
A) Current Assets: i) Inventories ii) Sundry Debtors iii) Cash & Bank Balance iv) Other Current Assets v) Loans & Advances Total Current Assets: B) Current Liabilities: i) Current Liabilities ii) Provisions Total Current Liabilities:
3,283,990 7,319,804 4,855,139 1,798 1,809,396 17,270,127 12,759,018 2,468,701 15,227,719
4,842,246 11,097,716 9,394,447 3,597 4,164,082 29,502,088 24,275,052 3,415,310 27,690,362
1,558,256 3,777,912 4,539,308 1,799 2,354,686
11,516,034 946,609
Working Capital (A-B) Net Increase Or Decease In Working Capital
2,042,408
1,811,726 230,682 230,682
2,042,408
2,042,408
12,462,643
12,462,643
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: It is observed that current asset decrease in 2004-05 as compare to 2002-03 to 2003-04 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 again it increases 2005-06. It shows fluctuation in these years. Working capital of SIEMENS ltd at only in the 2003-04 it increased reaming year i.e. 2004-05 and 200506 it decreases, it means that in the year excluding 2003-04 working capital falls down which shows the current liabilities increasing in greater percentage as compare to current asset. 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 increased it shows the positive trend.
Table II: 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, i) ii) iii) iv) An increase in current asset increases working capital A decrease in current assets decreases in working capital An increase in current liabilities decreases working capital. A decrease in current liabilities increase working capital
It is worth noting that schedule of changes in working capital is prepared only from current assets and current liabilities and the other information is not of any use for preparing this statement.
The company should look in to the proper current liabilities.
Bibliography
1. Book about Excise Manual
- By R. K. Jain
2. Commercial Department.
- By Mr. Manoj Dhok.
3. Annual Report of SIEMENS in India 4. Financial Management by
-Khan & Jain -S. N. Maheshwari
5. www.siemens.com

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A PROJECT REPORT ON

WORKING CAPITAL MANAGEMENT

SUBMITTED TO Prof. Dr. V.K. DESHPANDE

SUBMITTED BY MR. RAKESH N. DHOPTE 2008-2009

Mr. Rakesh Dhopte MBA (Finance)

Dimension II Composition & Level of current assets

Composition & level Of current Liabilities

Evaluation of working capital

Table I - Statement of Working Capital Requirement

2002-03 1,215,892 3,559,062 2,584,729 1,753,370 9,113,053 6,532,933 511,492 7,044,425

Graphical Representation of Working Capital Requirement

Table II - Statement of Changes in Working Capital

Effect on Working Capital Increase Decrease

3,283,990 7,319,804 4,855,139 1,798 1,809,396 17,270,127 12,759,018 2,468,701 15,227,719

4,842,246 11,097,716 9,394,447 3,597 4,164,082 29,502,088 24,275,052 3,415,310 27,690,362

1,558,256 3,777,912 4,539,308 1,799 2,354,686

Working Capital (A-B) Net Increase Or Decease In Working Capital

1,811,726 230,682 230,682

Observation and Summary

The company should look in to the proper current liabilities.

1. Book about Excise Manual

3. Annual Report of SIEMENS in India 4. Financial Management by

-Khan & Jain -S. N. Maheshwari

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