Siemens

Internship report 2016

Association of Chartered Certified

Accountants(ACCA)
SUMMER INTERNSHIP 2016

Name:
Syed Danish Ali

Major Field:

PD-DF (CS- Controlling Department)

Company Where Internship Was Served:

SIEMENS LAHORE, PAKISTAN

Duration:

From 13th of June to 25th of July 2016

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PREFACE
As per the requirement of the internship program at Siemens, this report outlines the details of
the training received during the internship period. The internship program lasted six weeks in
which the dynamics of the Finance and Controlling Department were fully exposed to and
assimilated. This report includes all the major aspects covered during my internship,
propounding thorough knowledge of procedures being followed to complete individual tasks.
The report comprises of group wise description.

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Table of contents
A-Department I was attached to... ..04
1-About Siemens05
2-Functions of the CS Department. .05
3-The work I did in the CS Department.... ..08
4-Process flow of sales..09
5-Current developments and Siemen.11
6-Ethics and CSR in theory and at Siemens.12
7-Conclusion.12

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Department I was attached to

Customer Services Department
Supervisors Name
Hussain Ismail
Designation
Business controller
Department:
Customer Services commercial PD-DF
Duration:
th
13 of June 2016 to 25th of July 2016 (6 weeks)

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1-About Siemens Global:
Siemens is a giant multinational company operating in nearly more than 180 countries. It was
founded by Sir Werner von Siemens in 1847. It has 9 divisions

Power and Gas

Wind Power and Renewable
Power Generation
Mobility
Digital Factory
Process Industries and Drives Division
Healthcare
Siemens Financial Services
Siemens Real Estate

1.1-About Siemens Pakistan:

The Siemens (Pakistan) Engineering Co. Ltd is an engineering conglomerate and

financial services corporation headquartered in Karachi, Lahore, and Islamabad. It has
multiple regional offices all over the country.

Active since 1947, Siemens Pakistan is one the largest provider of the engineering
services and management in the country, with overseeing ongoing projects in
healthcare, defense development, energy, telecommunications, and computer
expansion as well as heavy construction management. When founded, Siemens Pakistan
was originally focused on providing the network of communications but its role in
energy sector grew since 1987.In 201516 Siemens Engineering generated its gross
profit to ~493.89 million PKR in its investments in energy sector. Its original corporate
programmed is to provide engineering and technological solutions in energy,
healthcare, infrastructure and construction industry. In fiscal 2015, Siemens in Pakistan
scored major successes in all four Sectors.

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1.2-Abou t S iemens Process Indus trie s An d D rives:
Siemens PD division serves its customers with the aim of

Increase in their productivity

Improving their time to market
Providing innovative, integrated technology across the entire lifecycle
By supporting them in continuously improving the reliability, safety, and efficiency of
products, processes and plants.

The process industry is one of the core businesses of Siemens. Countless applications, installed
throughout a wide variety of industries, demonstrate its expertise. But even more important is
the value it add for its customers, enabling them to increase their productivity in every part of
the value chain. With its precise knowledge of the different market segments, it can help
customers respond faster and more specifically to new market requirements and
developments, and thus strengthen their competitiveness.
Process Industries and Drives Solutions PD division provides
Process automation
Integrated drive systems
Sensor systems
Plant engineering software
1.3- Siemens Digital Factory division:
Siemens DF division serves its customers with the aim of

Provision of comprehensive portfolio of seamlessly integrated hardware, software and

technology-based services

Enhancing the flexibility and efficiency of customers manufacturing processes

Reducing the time to market of their products.

The seamless integration of data along the industrial value chains will gain more and more in
importance, becoming a key criterion for the survival of developing / manufacturing companies.
The Digital Factory Division aims to provide its customers with a comprehensive portfolio of
hardware and software products which enable the comprehensive integration of data from
development, production and suppliers. The complete digital representation of the entire
physical value chain is its ultimate goal.
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Digital Factory provides following solutions
Automation Systems
Industrial Controls
Industrial Communication
Power Supplies
eCar Power train Systems
Products for Specific Requirements
Industry Services
Industry Software
PC-based Automation
Motion Control
Online Support
Operator Control and Monitoring Systems
2-FUNCTIONS OF THE CS DEPARTMENT:
The function of CS department is to facilitate the industry sector customers of Siemens. This
involves the provision of services at their demand to handling of their complaints.
The department is headed by commercial team which is lead by the business controller. The
business controller controls all the financial aspects of PD-DF departments.
There are following functions of CS Dept. at SIEMENS:
Provision of Field services
Provision of spare parts
Commissioning
Retrofitting
Service agreement
Training
Condition monitoring
Functions of CS commercial department:
Annual budget planning process
Providing guidance for strategy roadmaps.
Manage and support annual budget process, forecasting across 7 segments of industry;
sales volume.
Consolidate P&L forecast and variance reporting: budgets, revenues, profit margins, and
cash flow
2.1-MAJOR CUSTOMERS OF DEPARTMENT DF/PD:
DG Khan Cement Factory Co.Ltd
Fatima Fertilizer Company Ltd
Maple Leaf Cement factory Ltd
Packages Ltd
ICI Pakistan
Bulleh Shah Packaging Ltd
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Nestle Pakistan Ltd

Nishat Papers and Products Co.Ltd
JDW Sugar Mills Ltd
Nishat Mills Ltd
Ibrahim Fibres

2.2- COMPETITORS OF SIEMENS IN PAKISTAN:

ABB Pakistan (Pvt) Ltd
Avanceon Pakistan (Pvt) Ltd
Schneider Electric Pakistan (Pvt) Ltd
3- WORK I DID IN CS DEPARTMENT:
As a finance intern I was attached to commercial department. During the course of my
internship I was been given following tasks by my mentor.
1- Financial analysis of Siemens periodical reports.
2- Variance analysis of various periods.
3- Observed work in SAP for basic bookkeeping.
4- Reviewed business plan from its inception to execution.
5- Reviewed the impact of current developments for financial reporting at Siemens.
6- Performance measurement and management at tactical level.

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4-Sales Process flow:

Inquiry by customer (
Phone call or Email)

Availability check

Quotation

Negotiation

Order

Delivery

Invoice

Payment

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4.1- Order booking on SAP:

Material Checking via
stock report

Purchase Requisition

Stock reports

Request for balance

payments
Balance payment
received
Cheque
Acknowledgement

Cheque Deposit

Item available for

delivery

Dispatch Documents

Delivery note + Invoice

+ Sales tax invoice

Goods dispatched

Goods Received by
customers

Entry in SAP

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5- Current developments in financial reporting and impa ct on
Siemens:
5.1- Summary of IFRS 15 (Revenues from contracts with customers):
Objective:
The objective of IFRS 15 is to establish the principles that an entity shall apply to report useful
information to users of financial statements about the nature, amount, timing, and uncertainty
of revenue and cash flows arising from a contract with a customer.
Accounting requirements for revenue:
Identify the contract(s) with a customer
Identify the performance obligations in the contract
Determine the transaction price
Allocate the transaction price to the performance obligations in the contract
Recognize revenue when (or as) the entity satisfies a performance obligation.
Erp solution Siemens:
To reflect changing in reporting requirement as a result of IFRS 15, Siemens is using ERP
solution developed by SAP. New standard solution RAR( Revenue Accounting and Reporting).
It specifically addresses requirements derived from this new accounting standard but also
generic requirements related to revenue recognition across various accounting principles.
Siemens presents several financial measures to supplement its Consolidated Financial
Statements. These measures are designed to measure growth, capital efficiency, cash and profit
generation, and optimization of Siemens capital structure.
5.2- NEW COLLABORATION MODEL:
Objective:
New collaboration model is a corporate initiative by Siemens that reduces tax risk as well as
complexity in internal negotiation.
It requires the cooperation in large international projects.
International cooperation: It specifies rules for cooperation in large project business between
legal entities of business and their regional units based in different countries.
Large project business: In large international projects the regional unit cannot perform entire
project thus requires substantial contribution from business unit.
Risk/Profit allocation: Concrete solution for alignment of risk and profit allocation between
business and regional unit considering arms length and substance over form principle.

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6- ETH ICS A ND CSR IN TH EOR Y AND IN SI EMENS:

Working in Siemens provided me with the chance to see the application of theories I learned in
my education phase.
BUSINESS ETHICS:
Ethics is the most important character when it comes to working in corporate. Ethics begin
where law ends. The course Business Ethics was very beneficial because it made me understand
that when a company is doing its business, it must do it in a proper legal way and that it is
answerable to a number of stakeholders in and around it. The key term that helped me in
Business Ethics was Confidentiality and Trust. Since, I was placed in CS-commercial Department;
confidentiality of information was given utmost importance.
7- CONCLUSION:
The internship at Commercial PD/DF Department of SIEMENS was a great experience for me. I
have gained a lot of knowledge, practice and opportunities from this internship. It has given me
practical experience to apply all the theory I have learnt through my academics. It was my
second experience in the professional world and I learnt a lot both on personal and professional
basis. The internship made it clear that I have all the capabilities in me to excel in my career,
the positive remarks which were given to me by my supervisor are the result of the efforts that
were put in. It gave me a lot of confidence and increased my moral. I thank Siemens HR for
giving me this opportunity.

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