Accountancy

Project

S. Visaagan

XII-

C1
INTRODUCTION
A project is a wholehearted purposeful activity proceeding in a social
environment.

Meaning of the project

A project, from the point of view of students, can be said to be a
purposeful learning activity involving practical problems, planned and
carried out in a real-life manner to achieve specified goals. In other
words, project work refers to successful completion of a study.

Study of a Project
A study or implementation and presentation of a project involves a
number of stages which are :

1. IDENTIFYING THE PROJECT. It means identifying the subject and

purpose of the project leading to defining aim thereof.
2. PLANNING THE PROJECT. It means planning project execution to
reach the defined aim. It also means identifying the inputs (information
and data) required for the purpose of the project.
3. EXECUTING THE PROJECT. It means identifying the source of
information and data. It may be readily available or may have been
collected. The collected information and data will have to be tabulated
and analysed bearing in mind the aim of the project, analysing the data
using various tools of analysis, summonsing the result of analysis before
preparing the project report on its basis.
4. CONCLUSION It means arriving at the findings and, thus , conclusion
on the basis of analysis of the information and data.
5. PREPARING THE PROJECT REPORT. It is the end product of
project undertaken which highlights, planning the project, defining the
aim, inputs (information and data) used, analysis tools used, summonsing
the project and the conclusion reached.the analysis is better understood
& also presented if the analysis and conclusion are supported by bar
diagram, pie chart and line diagram.

ADVANTAGES OF PROJECT WORK:

The advantages that a project work has a teaching tool are:-

1. It is a scientific and effective method of imparting knowledge as it is

based on learner’s participation and practical exercises.
2. It helps in applying theoretical knowledge to real life problems.
3. It helps in developing and improving analytical skills to sharpening the
creative thinking.
4. It provides a neutral environment under which a student is able to
learn and also show his analytical quality.
5. It encourages students to think and act together which is necessary to
achieve the given target. It, in the process, develops mutual corporation
and team spirit.

OBJECTIVES OF PROJECT WORK

Objectives of project work are :-

1. To enable a student to complete the accounting process in a real

business like situation.
2. To develop competence to read, analyse and interpret the accounting
data of the enterprise and present the study preparing the project file.
INTRODUCTION
OF COMPANY
Siemens AG
Siemens AG is a German multinational technology conglomerate and the
largest industrial manufacturing company in Europe. With a strong focus
on automation,digitization, and intelligent infrastructure, Siemens
operates in various sectors, including rail transport solutions, health
technology, and digital healthcare services.

BOARD OF DIRECTORS OF SIEMENS AG.LTD

1. DR.ROLAND BUSCH
2. CEDRIK NEIKE
3. MATTHIAS REBELLIUS
4. Ralf P. Thomas
5. JUDITH WIESE

HISTORY OF SIEMENS AG.LTD

 Founded in 1847

Siemens & Halske was founded by Werner von Siemens and Johann Georg
Halske, laying the foundation for the company's rich history of innovation
and technological advancements.

 Merger of Three Companies

In 1966, Siemens AG emerged from the merger of three companies:

Siemens & Halske, Siemens-Schuckert, and Siemens-Reiniger-Werke,
creating a powerful entity with diverse expertise.
 Global Presence

Today, Siemens and its subsidiaries employ around 320,000 people

worldwide and generate a global revenue of approximately €78 billion,
cementing their position as a global market leader in industrial automation
and software solutions.

 Expansion into Other Industries

Siemens has expanded beyond their original focus on electrical

engineering and industrial manufacturing to include a wide range of
industries, such as healthcare, energy, and transportation.

Future Vision

Siemens remains committed to shaping the future of industries by

leveraging the power of technology and driving sustainable advancements.

 Software as a Key Focus

In 2023, Siemens announced its ambition to increase the sales share of

software businesses to 20%, highlighting the growing importance of
software solutions in their overall portfolio.

 Siemens Xcelerator

Siemens launched the "Siemens Xcelerator" platform, providing a curated

portfolio of IoT-enabled hardware, software, and digital services,
designed to accelerate innovation and enhance business performance.

 Collaboration with NVIDIA

 Siemens partnered with NVIDIA to leverage the power of NVIDIA's
Omniverse platform, enabling seamless collaboration and simulation across
domains, revolutionizing the design and manufacturing processes.

VALUES OF SIEMENS AG LTD.

 Respect and inclusion: Siemens believes that everyone deserves an

opportunity, and that people should be diverse and show respect. They
also flatten hierarchies, celebrate individual contributions, and embrace
flexibility.
 Responsible, excellent, and innovative: Siemens values are the foundation
for their success.
 Sustainable, long-term growth: Siemens combines the real and digital
worlds, and aims to address global challenges through innovation,
technology integration, and responsible business practices.
 Prohibit corruption: Siemens' code of ethics prohibits corruption.
 Respect employee rights: Siemens' code of ethics requires them to
respect employee rights.
 Take responsibility for employee health and safety: Siemens' code of
ethics requires them to take responsibility for employee health and
safety.
 Act in accordance with international and statutory standards: Siemens'
code of ethics requires them to act in accordance with international and
statutory standards regarding environmental protection.
FINANCIAL STATEMENT:

1.BALANCE SHEET OF SIEMENS AG LTD.

 TOOLS OF FINANCIAL STATEMENTS
ANALYSIS:

1. CASH FLOW ANALYSIS

2. RATIO ANALYSIS
3. COMPARITIVE AND COMMON SIZE

SPEFIC TOOL 1:

COMPARATIVE AND COMMON SIZE

STATEMENT

MEANING:

Comparative Statements or Comparative

Financial Statements mean comparison of
components or elements or items of Balance
Sheet and Statement of Profit & Loss for two or
more years. As a first step, the value of each
component or element or item of two or more
financial years is placed alongside each other.
Thereafter, difference between the two
amounts is determined. And lastly, the
percentage change in the amount from the base
year is determined. The statement so prepared
is known as Comparative Statement. Intra-firm
Comparison
Comparative Statement of the firm's financial
statements of two or more years prepared, is
known as Intra-firm Comparison. It is comparison
of values of one period with those of another
period for the
same firm.

Inter-firm Comparison.
Comparative Statement is a tool of financial
analysis that shows change in each item from the
base year in absolute amount and in percentage,
taking the amounts for the preceding, i.e..
previous accounting period as the base.

FEATURE:
ADVANTAGES:
The Comparative Financial Statement is
important for the following reasons:

(i) Shareholders
Shareholders are the owners of the company.
Time and again, they may have to take decisions
whether they should continue holding the shares
of the company or sell them. The comparative
financial statement is important as it makes
available meaningful information to the
shareholders for taking decisions.

(ii) Decisions and Plans

The management of the company is responsible
for decision making and preparing plans and
policies. They, therefore, always need to
evaluate its past performances and
effectiveness of their past actions to realise the
company's goal. For that purpose, comparative
financial statements are important to the
company's management.

(iii) Lenders
The lenders provide loan capital to the company.
Therefore, they may have to take decisions as to
whether the loan is safe, whether they should
extend more loan to the company or charge
interest at higher rate. The comparative
financial statements provide important
information to them for their purpose.

DISADVANTAGES:
1. Affected by Personal Judgment:

Financial statements are prepared on the basis

of accounting concepts and conventions along
with estimates, examples being depreciation,
provision for doubtful debts, etc. If the
estimates are incorrect, the projections based
on comparative statements will not be reliable
2. Qualitative Elements are Ignored:

Financial statements when prepared do not

consider qualitative elements of the business
such as manpower quality. It considers only those
items which can be measured in terms of money.
Since a Comparative Statement is based on
financial statements, it also ignores qualitative
elements of the business which have a significant
impact on it.
3. Price Level Changes are Ignored:
 Comparative Financial Statements do not
consider price level changes and all the items in
the financial statements are recorded at cost
and value of money (purchasing power) is not
constant.
4. Variation in Accounting Policies:

If two firms follow different accounting policies,

the comparison of their financial statements
does not remain meaningful.

EXAMPLE OF BALANCESHEET &

INCOME STATEMENT
COMMON SIZE STATEMENT

COMMON-SIZE STATEMENTS

Common-size Financial Statement is Vertical

Analysis of Financial Statements in which
amounts of individual items of Balance Sheet or
Statement of Profit & Loss (or Income
Statement) are written. These amounts are
further converted into percentages to a common
base. Common base is Revenue from Operations,
i.e., Net Sales for Statement of Profit & Loss
and Total Assets or Total of Equity and
Liabilities for the Balance Sheet. The
percentage so calculated can be compared with
the corresponding percentages in other periods
and meaningful conclusions can be drawn.

In the words of Kohler, "Common-size

Statements are accounting statements
expressed in percentage of some base rather
than rupees".

Common-size Statement may be prepared for

intra-firm and inter-firm comparison. Common-
size Statements may be prepared for Balance
Sheet as well as Income statment

INCOMESTATMENT
BALANCE SHEET: