Final Project

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1.1.

GENERAL INTRODUCTION

In market-based economies, the financial sector has a special role, as it mobilizes resources and allocates them to those investments that are capable of generating the highest return on capital. The better the financial sector can fulfill this role, the better the economy will perform in the long run. Financial sector development can benefit by •

promoting overall economic growth, which in turn leads to improved income levels overall

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reducing the risk of financial crises, whose adjustment costs are most felt by the poor improving access of the poor to financial services

Financial markets are a part of the changing business paradigms, across the globe. In fact, the financial markets are the first to unleash the creativity and imagination and lead the revolution. Today, globalization of competencies, thinking and perspectives has been the part of Strategic Action Plan of all the major players in the financial markets, globally. The cut throat competition across the market operators and the pressure to perform by the stakeholders has resulted in competition being fiercer than ever before. Both the business landscape and chemistry of the competition has changed significantly over the period of time. All around, there is a fresh thinking on the financial products, structure of market players and possibilities for value creation. Financial markets are being redefined, reinvented and reconfigured on a persistent basis.

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1.2.

OBJECTIVE OF THE STUDY

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To study the financial implication of the accounting entries.

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To gain familiarity with the software used by organizations.

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To apply the theoretical knowledge acquired by me to the practical situation.

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To know how an organization and its different functional departments works.

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To know how a team works and achieves the targets together.

1.3.

INDUSTRY PROFILE

The financial sector is in a process of rapid transformation. Reforms are continuing as part of the overall structural reforms aimed at improving the productivity and efficiency of the economy. The role of an integrated financial infrastructure is to stimulate and sustain economic growth. The Indian capital markets have witnessed a transformation over the last decade. India is now placed among the mature markets of the world. Today, financial markets are turbulent, globally. The most precious word today is the “convergence” of the opportunity zones in financial markets from concept to culmination. It may be observed that the competitive dynamics of market has changed phenomenally. Globally, availability of all sorts of financial products (both money market and capital market) on the exchanges is driven by the benefits like transparency,

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better price discovery, wider dissemination of information and large investing community. Ratings of the Clearing corporations have also added a fuel to the business dimension and players in the market are exploring the opportunities to become strong through strategic alliance. Today, investors are perceived as not just as the investors but buyers of the financial solutions. Therefore, the philosophy of customer being king is driving the financial markets as well. Accordingly, it is no more customers chasing the products; it is the appropriateness of options chasing the customers. Today, financial institutions are co-designing the products/services with their customers and striving to provide them with global solutions. Simplification of the customers’ life is being priced by the market. Look at what Virgin Bank is doing. It provides all the services to its customers including checking account to savings account to housing loan to car loan to credit card etc…with a single bank account. Technology is also helping market players redefine the way they have been operating in the market.

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1.3.1. GLOBAL OVERVIEW As financial service providers look to the future, they are struggling to sustain growth in a world of fast-changing threats and opportunities. The choices that financial institutions are making every day will determine whether they can achieve their goals of exploiting emerging opportunities, managing risks and gaining a competitive advantage during this crucial period. Financial services executives cite the same transformative issues – globalization, regulation, risk, demographics and technology – but rank them differently depending on their sector. Based on those issues and our client experiences, we have identified five strategic imperatives for financial services firms: 1. Embrace opportunities in new markets The most successful firms will continue to exploit the promise of fastdeveloping economies and easing cross-border investment regulations. Most large financial institutions are already there:

In Central and Eastern Europe, and in Asia, where there are at least a halfdozen countries vying to become regional financial services hubs. Europe is poised for retail financial services consolidation on a scale seen in the US market in the 1990s. Many European institutions are looking at opportunities in other European countries. While not “new” markets in the traditional sense, they are strategically viewed as a way to gain entry into areas where institutions have not previously had a strong presence. Cross border mergers, driven by the need to grow earnings, the appeal of economies of scale and a more

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encouraging regulatory climate, could lead to the disappearance of hundreds of banks and the emergence of a handful of pan-European players by 2010. Off shoring, which has become a competitive necessity over the past 10 years, will ramp up as firms recognize the improvement in quality they can realize through the well-qualified people and cost savings attainable by scaling up their operations, particularly in areas like India, the Philippines, Malaysia, China and other markets in Asia Pacific. Firms will continue to look beyond IT to actuarial services, human resources and other backoffice functions. Increasingly, they will need to simplify and streamline their processes to realize the maximum benefits. China, in particular, will transform the financial services industry for years to come as growth opportunities slow in Japan and the West. Western banks and securities firms have already spent billions to acquire stakes in China’s four national banks. Recently they have started to invest in midsized banks as well, including city banks. A large savings rate, growing middle and wealthy classes and a dearth of healthcare and pension systems make China a market that major asset management firms and insurance companies ignore at their peril. Though some have quickly achieved profitability on their China ventures, many investments are in the red, and success is seen as a long-term goal.

2. Refocus customer relationships through technology and innovation As direct customer access and pricing pressures lead to commoditization, customer focus must become central to strategy. Financial institutions are

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increasingly focusing on delivering an innovative customer experience – one that is targeted to unique segments and emphasizes convenience, service and value. Technology has empowered customers to loosen ties with financial services providers, but it can also be harnessed to rebuild and strengthen relationships. On the retail side, the focus will be on personalization, ease of navigation and a revival of personal client contact as one component of a multi-pronged relationship. On the institutional side, capital markets firms will develop more sophisticated client platforms that provide trading scenario analysis, risk modeling and performance management reporting. 3. Adopt a principle-based approach to regulatory compliance Across all sectors and countries there is deep concern about the cost of regulatory compliance. No financial institution is immune: From Basel II, Solvency II and Sarbanes-Oxley to a country-by-country laundry list of new laws and tougher enforcement of old ones, firms face an expensive and confusing regulatory landscape. Given the number and mandates of regulators, it is no longer possible to adopt a reactive, piecemeal approach to compliance. Instead, institutions are gaining a competitive advantage by introducing principle-based compliance into their governance and management culture and embedding it into the business, effectively training and deputizing every manager. At the same time, by taking a strategic, disciplined approach to their formal compliance function, firms can avoid costly overlap and duplication of effort. Across geographies and business lines, firms need to adopt a uniform methodology for documenting compliance risks and controls and

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testing and implementing hose controls, using evolving technology to assist. 4. Address risk in the context of an enterprise risk management framework Operational risk is top of mind for financial services firms. More than half of those surveyed identified operational risk as harder to manage and an area of greater concern than market, credit and liquidity risk, perhaps because they already have a solid handle on those risk types. Similarly, reputational risk, which is intertwined with operational, compliance and other risks, is emerging as a central concern. A strategic, holistic approach – through an enterprise risk management framework – can help mitigate risk across the board. Specific actions may range from vetting supply-chain organizations for potential reputational issues to developing a consistent internal and external communications strategy. More firms are employing enterprise risk management (ERM), which can provide a value proposition for the board and senior management.

5. Capture assets in the retirement market In the graying markets of the US, Europe and much of Asia, payouts will soon begin on trillions of dollars in retirement assets. At the same time, responsibility for retirement security is increasingly shifting to the individual and away from governments and employers. To date, financial providers

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have pursued affluent baby boomers and early retirees. Future growth will come from helping retirees maintain a steady stream of income. To achieve long-term success and differentiate themselves from the competition, now more than ever, financial institutions will have to foster relationships with individuals, provide advice and develop products that meet their needs at all stages of the lifecycle. As defined contribution plans continue to supplant defined benefit plans, the plan sponsor increasingly will be viewed as the conduit to the individual client rather than the client itself. A. STRENGHT OF THE PLAYERS The number of companies in the industry has always been an indicator of the strength of the industry. The financial institution cannot be numbered as this is large in number the financial institutions are not only have their presence in the developed countries but they do have presence all over the globe.

B. THE SEGMENTS

FINANCIAL MARKETS A Financial Market can be defined as the market in which financial assets are created or transferred. As against a real transaction that involves exchange of money for real goods or services, a financial transaction involves creation or transfer of a financial asset. Financial Assets or Financial Instruments represents a claim to the payment of a sum of money sometime in the future and /or periodic payment in the form of interest or dividend. Money Market- The money market ifs a wholesale debt market for low-risk, highly-liquid, short-term instrument. Funds are available in this market for periods ranging from a single day up to a year. This market is dominated mostly by government, banks and financial institutions.

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Capital Market - The capital market is designed to finance the long-term investments. The transactions taking place in this market will be for periods over a year. Forex Market - The Forex market deals with the multicurrency requirements, which are met by the exchange of currencies. Depending on the exchange rate that is applicable, the transfer of funds takes place in this market. This is one of the most developed and integrated market across the globe. Credit Market- Credit market is a place where banks, FIs and NBFCs purvey short, medium and long-term loans to corporate and individuals. Constituents of a Financial System

C. Major Markets The major market is located in the U.S., Europe, Japan, Singapore, Hongkong etc. the emerging markets are India, China, Taiwan, Australia etc. in short the whole world is a market for the financial institutions. •

North America (the US and Canada)

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Europe

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Asia Pacific

Thus covering the world as a whole, the financial institution have great future prospects as the new market are discovered every day.

NATIONAL OVERVIEW In India the financial institutions plays a important role you can see the financial institutions everywhere in any city or even in the village or remote part of the Indian province. The major player in the Indian context is the RBI. Top 10 Financial institutions in India are: S.No

Site

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SBI Capital Markets Limited

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PNB Housing Finance Limited

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PNB Gilts Limited

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Bajaj Capital Limited

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DSP Merrill Lynch Limited

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Birla Global Finance Limited

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Housing Development Finance Corporation

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ICICI Group

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ICICI Markets

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Karvy Group

Some of the figures of Indian companies are as such: ICICIPRULIFE

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India's Number one private life insurance company A joint venture between one of India's leading private bank and a leading international financial services group headquartered in the UK Total capital infusion stands at Rs. 20.60 billion, Today it has nation-wide team comprises of over 580 offices, over 234,000 advisors; and 22 bancassurance partners The company was the first life insurer in India to receive a National Insurer Financial Strength rating of AAA (Ind) from Fitch ratings.

XNSA Founded in 1962 it is a British outsourcing and technology company, quoted on the London Stock Exchange. Its headquarters is in Reading, Berkshire, England, and it has a major presence in India. In the 2007 financial year the company had a turnover of UK£379.7 million and employee strength over 8600. The Company has four main areas of expertise: Business and Technology Consulting, IT Services, IT Outsourcing, and Business Process Outsourcing It operates across several business sectors, with divisions in banking, insurance, public sector, retail, telecoms, transport, travel & logistics and utilities

RELIGARE SECURITIES A Ranbaxy promoter group company is one of the leading integrated financial service institutions of India. The company offers a large and diverse services ranging from equities, commodities, insurance broking, wealth advisory, and portfolio management services, personal finance services, Investment banking and institutional broking services. Retail network spreads across more than 900 locations across more than 300 cities and towns KOTAK MUTUAL One of India's leading financial institutions, offering complete financial solutions from commercial banking, to stock broking, to mutual funds, to life insurance, to investment banking, the group caters to the financial needs of individuals and corporate. The group has a net worth of around Rs.3,200 crore and employs around 10,800 employees across its various businesses servicing around 2.6 million

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customer accounts through a distribution network of branches, franchisees, representative offices and satellite offices across 300 cities and towns in India and offices in New York, London, Dubai, Mauritius and Singapore.

AVIVA

The world's fifth-largest insurance group, the biggest insurance group in the UK and the second-largest insurance group in Canada with 59000 employees serving more than 40 million customers across 25 countries worldwide, It has more than £364 billion of assets under management with total revenue of £45,377 million and net profit of £ 2,389 million (2006), It has 156 Branches in India (including rural branches) supporting its distribution network. Through its Banc assurance partner locations, its products are available in close to 500 towns and cities across India. RELIANCE MONEY A Non-Banking Financial Company was incorporated as a public limited company in 1986 and is now listed on the BSE and the NSE (India). A net worth of over Rs 3,300 crore and over 165,000 shareholders. One of India’s leading and fastest growing private sector financial services companies, and ranks among the top 3 private sector financial services and banking companies, in terms of net worth. The Company offers the brokerage services across 700 cities including Delhi and Mumbai through 3,000 outlets.

ADVANTAGE INDIA •

Competent workforce: India has a pool of personnel with high managerial and technical competence as also skilled workforce. It has an educated work force and English is commonly used. Professional services are easily available.

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Legal & Financial Framework: India has a 53 year old democracy and hence has a solid legal framework and strong financial markets.

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There is already an established international industry and business community. •

Information & Technology: It has a good network of world-class educational institutions and established strengths in Information Technology.

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Globalization: The country is committed to a free market economy and globalization. Above all, it has a 70 million middle class market, which is continuously growing.

THE GROWTH SCENARIO In India there is a high potential for the growth of the financial institution as the availability of the cheap and capable peoples and the way the Indian economy is growing its really fanatic to see the growth in this recession time also the Indian GDP is growing at 6.5% and will be growing further. Some of the public institutions are:

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CENTRAL BANK Reserve Bank of India Head Office in Mumbai. Regional offices of Reserve Bank of India State of Delhi State of Gujarat State of Madhya Pradesh State of Maharashtra & Goa State of West Bengal State of Tamil Nadu State of Karnataka State of Orissa State of Punjab State of Assam State of Andhra Pradesh State of Rajasthan State of Jammu & Kashmir State of Uttar Pradesh State of Kerala State of Bihar FINANCIAL AUTHORITIES Central Board of Direct Taxes (CBDT) Central Board of Excise & Customs Reserve Bank of India Securities and Exchanges Board of India (SEBI)

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INSURANCE General Insurance Corporation of India Ltd. Life Insurance Corporation New India Assurance Company United India Insurance Company

SPECIALISED FINANCIAL INSTITUTIONS IN INDIA Export Credit Guarantee Corporation of India Ltd. Export Import Bank of India (EXIM) General Insurance Corporation of India (GIC) Industrial Credit and Investment Corporation of India (ICICI) Industrial Development Bank of India (IDBI) Industrial Finance Corporation of India (IFCI) Unit Trust of India MUTUAL FUNDS IN INDIA Kotak Mahindra Mutual Fund Unit Trust of India

MERCHANT BANKS / VENTURE CAPITAL VLS Finance Ltd. (Provides the following fee-based services: a) Private Equity and Debt Placements for Corporate across the globe - main focus being for projects in India, USA and Europe; b) Venture Capital arrangements; c) Identifying and tying up Joint Venture Partners in India and abroad; d) Domestic Bank Financing)

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CREDIT REPORTING AND DEBT COLLECTION Pankaj Saraf (Member of Indo-German Chamber of Commerce & Industry, World Trade Centre (Calcutta), and India Trade Promotion Organization)

Some other private institutions are: Financial Institutions AK Capital Services Ltd Action Financial Services India Ltd Aeonian Investments Company Ltd Allianz Capital & Management Service Ltd Allianz Securities Ltd Apollo Finvest (India) Ltd Apollo Sindhoori Capital Investments Ltd Aravali Securities & Finance Ltd Arihant Capital Markets Ltd Artefact Software & Finance Ltd Athena Financial Services Ltd Axis Capital Markets (India) Ltd

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B.N. Rathi Securities Limited BLB Ltd Balmer Lawrie Investments Ltd Birla Global Finance Ltd Blue Chip (India) Ltd Brescon Corporate Advisors Ltd CFL Capital Financial Services Ltd Cholamandalam Investment & Finance Company Ltd Comfort Intech Ltd Consolidated Finvest & Holdings Ltd Coral India Finance & Housing Ltd DCM Financial Services Ltd DSP Merrill Lynch Ltd DSP Merrill Lynch Mutual Fund Dhandapani Finance Ltd Dolat Investments Ltd EPIC Energy Ltd

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Era Financial Services (India) Ltd Escorts Finance Ltd FCGL Industries Ltd First Leasing Company of India Ltd Fortis Financial Services Ltd GE Capital Transportation Financial Services Ltd Geojit Financial Services Ltd Global Capital Markets Ltd Goldcrest Finance (India) Ltd Gruh Finance Ltd Gujarat Lease Financing Ltd HB Portfolio Ltd I-Power Solutions India Ltd IFSL Ltd IKF Finance Ltd IL&FS Investment Managers Ltd IL&FS Investsmart Ltd

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Ind Bank Housing Ltd Indbank Merchant Banking Services Ltd India Cements Capital & Finance Ltd India Lease Development Ltd Indiabulls Financial Services Ltd Indo Green Projects Ltd Infrastructure Development Finance Company Ltd Integrated Finance Company Ltd Integrated Financial Services Ltd JK Investo Trade India Ltd JM Financial Ltd Jayabharat Credit Ltd Joindre Capital Services Ltd Kailash Ficom Ltd Keynote Corporate Services Limited Kirti Finvest Ltd LKP Merchant Financing Ltd

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Magma Leasing Ltd Maha Rashtra Apex Corporation Ltd Manappuram General Finance & Leasing Ltd Mefcom Capital Markets Ltd Morarka Finance Ltd Motor & General Finance Ltd Munoth Investments Ltd Muthoot Capital Services Ltd NDA Securities Ltd NPR Finance Ltd Nalwa Sons Investments Ltd Netvision Web Technologies Ltd Networth Stock Broking Ltd Nicco Uco Alliance Credit Ltd Nu Tech Corporate Services Ltd PNB Gilts Ltd Parsoli Corporation Ltd

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Peerless Abasan Finance Ltd Peeti Securities Limited Rajmata Investments And Finance Limited Ratnabali Capital Markets Ltd Reliance Capital Ltd SKP Securities Ltd SMIFS Capital Markets Ltd SREI Infrastructure Finance Ltd Sakthi Finance Ltd Sat Investeck Ltd Shardul Securities Ltd Shrachi Securities Ltd Shriram City Union Finance Ltd Shriram Investements Ltd Som Datt Finance Corporation Ltd TCFC Finance Ltd TVS Finance & Services Ltd

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Tata Finance Ltd Tata Investment Corporation Ltd Themis Medicare Ltd Times Guaranty Ltd Tricom India Ltd Triumph International Finance (India) Ltd United Credit Ltd Upsurge Investment & Finance Ltd VLS Finance Ltd Visistha Trades & Finance Ltd Wall Street Finance Ltd Williamson Magor & Company Ltd Yash Management & Satellite Ltd Zyden Gentec Ltd

These are a few names of the financial institutions that are doing business in India.

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2.1. ORIGIN OF THE ORGANIZATION Thomson Reuters is the world’s leading source of intelligent information for businesses and professionals. It combine industry expertise with innovative technology to deliver critical information to leading decision makers in the financial, legal, tax and accounting, scientific, healthcare and media markets, powered by the world’s most trusted news organization. The company has a long history since 1799 onwards the current and some of the previous historical events are given below.

2008 •

The Thomson Corporation and Reuters Group PLC combine to form Thomson Reuters.

2007 •

The Thomson Corporation and Reuters Group PLC announce that they are in discussions for the combination of their two businesses.

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Thomson completes sale of higher education, careers and library reference assets of Thomson Learning on July 5.

2006 •

Kenneth R. Thomson, former chairman of the Board of The Thomson Corporation, dies at the age of 82.

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Thomson Healthcare acquires Solucient, a leading healthcare information provider of data and advanced analytics that hospitals and health systems use to improve performance and lower costs.

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Thomson Scientific acquires Scholar One, web-based workflow solution for authoring, evaluating and publishing research to more than two million users.

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Thomson Financial acquires Quantitative Analytics, Inc., a leading provider of database integration and analysis solutions to the financial services industry.

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Thomson Healthcare acquires MercuryMD, Inc., the leading provider of mobile information systems serving the healthcare market.

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Reuters launches the first news bureau in the virtual world of Second Life.

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Reuters launches two products that allow its news output to be "read" by machines for the purposes of automated trading for the first time.

2005 •

Thomson Financial partnered with Merrill Lynch to complete the rollout of more than 23,000 workstations across more than 550 Merrill Lynch offices.

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Thomson acquires Global Securities Information, Inc., a leading provider of online securities and securities-related information and research services.

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Thomson acquires Tax Partners®, LLC, the nation's largest sales and use tax compliance service firm enabling Thomson to offer end-to-end sales and use tax solutions.

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Thomson introduces the launch of Thomson Pharma bringing an indispensable information solution to the workflow of the drug discovery and development process.

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Reuters transfers its London headquarters from Fleet Street to Canary Wharf. All London employees, including editorial, are brought into one building.

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Reuters acquires Action Images, a specialist sports photography agency, a deal designed to continue the expansion of Reuters global picture business

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Reuters takes major steps into next generation trading with the launch of:

2004

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Partnership with the Chicago Mercantile Exchange (CME), linking sell-side traders in the interbank FX market to CME eFX market

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Reuters Trading for Fixed Income

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Reuters Trading for Foreign Exchange

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Thomson acquires Information Holdings Inc., a provider of intellectual property and regulatory information for the scientific, legal, and corporate markets to further advance its capability to develop pharmaceutical and intellectual property solutions.

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Thomson acquires TradeWeb, a fast-growing and leading online global trading platform for fixed-income securities.

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Thomson sells Thomson Media group, comprised of leading printbased information products, to Investcorp.

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Thomson acquires CCBN, a provider of web-based solutions for the investment community, to further expand its offerings for the corporate communications market.

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Thomson sells DBM (Drake Beam Morin), which was acquired along with other Harcourt assets in 2001, to Compass Partners International Limited.

2003 •

Thomson sells print-based healthcare magazines.

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Thomson acquires Elite Information Group, a leading provider of integrated practice and financial management applications for legal and professional services markets

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Thomson sells its 20% interest in Bell Globemedia Inc. for $279 million to The Woodbridge Company Limited. The sale of Bell Globemedia, including the Corporation's interest in The Globe and Mail, is the culmination of the Thomson strategy to exit the newspaper business undertaken in February 2000.

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Reuters launches Reuters Knowledge opening up a new market on the buy-side of the financial services industry.

2002

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Thomson announces $300 million+ five-year deal with Merrill Lynch to develop and implement a new financial workstation to support Merrill Lynch Financial Advisors -- most significant information solutions deal of its kind in the financial services industry.

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Thomson acquires Current Drugs a global leader in the delivery of information solutions to the pharmaceutical and biotechnology industries

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Thomson common share offering raises US$1 billion.

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Thomson begins trading on New York Stock Exchange under the symbol TOC.

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David K.R. Thomson appointed Chairman of The Thomson Corporation.

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Thomson acquires Gardiner-Caldwell, a leading global medical education and communication business.

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Reuters launches Reuters Messaging, a reliable, high-security, highspeed instant messaging service developed specifically for the global financial services industry. Developed by Reuters and Microsoft and more than 30 financial institutions, the service allows financial professionals to communicate instantly with their colleagues and customers.

2001 •

Thomson acquires NewsEdge Corporation, a global provider of realtime news and information.

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Thomson acquires select higher education and corporate training businesses of Harcourt General.

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Thomson acquires FindLaw, the leader in free online legal information and services.

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The Globe and Mail becomes part of Bell Globemedia, a Canadian multimedia company, in which The Thomson Corporation holds a 20% ownership position.

2000

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Thomson sells community newspaper assets in North America for approximately 2.5 billion

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Thomson acquires La Ley, a leading legal publisher in Argentina.

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Thomson acquires Primark, a leading provider of financial and economic information products and solutions to customers worldwide.

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Thomson acquires Carson Group, a financial information services firm focused on corporate strategic intelligence and investor relations solutions.

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Thomson acquires IOB, one of Brazil's leading regulatory publishers.

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Thomson acquires online business of Dialog, a leading worldwide provider of online-based information services.

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Reuters announces major initiatives to exploit the Internet and open new markets, reinforced by Joint Ventures in communications, wireless delivery and investment research.

The Reuters Trust Principles: The charter documents of the two parent companies of Thomson Reuters, Thomson Reuters Corporation and Thomson Reuters PLC, require Thomson Reuters directors, in the performance of their duties, to have due regard to the Reuters Trust Principles, by the proper exercise of their powers and in accordance with their other duties as directors. The Reuters Trust Principles are: 1. That Thomson Reuters shall at no time pass into the hands of any one interest, group or faction; 2. That the integrity, independence and freedom from bias of Thomson Reuters shall at all times be fully preserved; 3. That Thomson Reuters shall supply unbiased and reliable news services to newspapers, news agencies, broadcasters and other media subscribers and to businesses governments, institutions, individuals and others with whom Thomson Reuters has or may have contracts; 4. That Thomson Reuters shall pay due regard to the many interests which it serves in addition to those of the media; and

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5. That no effort shall be spared to expand, develop and adapt the news and other services and products of Thomson Reuters so as to maintain its leading position in the international news and information business.

GROWTH AND DEVELOPMENT OF THE ORGANIZATION Thomson Reuters is one of the leading financial institutions in the world the main player with it is the Bloomberg. Thomson Reuters has kept its aspirations as to grow with the customers, it has got a long variety of products in its basket, there are nearly 300 products. Thomson Reuters has got some achievements which are listed below:

BusinessWeek annual ranking of the 100 Best Global Brands

Thomson Reuters was named the 44th of the Top 100 Global Brands in the brand's inaugural year. FTSE4Good Index

Thomson Reuters is listed on the FTSE4Good Index, which measures the performance of companies that meet globally recognized corporate responsibility standards, and facilitates investment in those companies.

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Best 50 Corporate Citizens

Thomson Reuters ranked 14th on the annual list of Best 50 Corporate Citizens by Canadian publication Corporate Knights. Companies are ranked on citizenship indicators such as diversity, pollution, renewable energy investments, pension fund quality and CEO-pay fairness. . Jantzi Social Index

Thomson Reuters was named as one of 60 Canadian companies within the Jantzi Social Index (JSI). JSI is comprised of companies that pass a set of broadly-based environmental, social and governance criteria. Top 1000 Publicly Traded Companies Thomson Reuters ranked #3 on the 2008 list of the 1,000 largest publicly traded Canadian corporations, measured by assets. Companies are ranked according to their after-tax profits in their most recent fiscal year, excluding extraordinary gains or losses.

CLIENTELE Thomson Reuters has a large number of clients with its to name some are: a: Wachovia b: National Bank c: Reliance d: Dell e:City Bank f:Credit Suisse

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PRODUCTS Thomson Reuters offers intelligent, information-based solutions, software tools, and applications for professionals in many industries. Solutions by Subject Accounting & Audit

FASB, SEC, SOX. We offer integrated information solutions from A-Z. •

Financial Statements

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Treasury

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Trusts & Estate Planning

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Engineering

Full text industry codes, standards and specifications, global patents applications and grants. Find a solution Finance

Moving at market speed to provide real-time news, information, and analysis. •

Company Information & Financials

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Economic Conditions & World Trade

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Financial Services

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Investor Relations

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Trading & Trade Processing

Healthcare

Providers, patients, and payers all rely on our trusted research. •

Clinical Evidence

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Consumer Decision Support

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Medical Records

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Payment Integrity

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Law

Research and reference solutions that raise the bar in the legal industry. •

Brands & Trademarks

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Federal Law

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International Law

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Management

Real world tools for organizations of every size. •

Human Resources

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Strategic Planning

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Marketing

From competitive intelligence to corporate communications, effective marketing drives business. •

Advertising

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Employee Relations

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Market Research

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Public Relations

News

Up-to-the-minute articles, video, and photos from world-class journalists. •

Business

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World

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Pharmacology

Better information yields better science, better treatment, and better results. •

Clinical Trials

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Drug Discovery

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Drug Labeling

Science

Catalyzing discovery with authoritative content and innovative technology. •

Behavioral Sciences

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Chemistry

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Life Sciences

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Tax

Get it right the first time with essential tax planning, tracking, and filing solutions. •

Federal Taxation

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Sales & Use Tax

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Technology

80% of all available technical information is published in patents and often nowhere else. •

Find a solution

FUTURE PLANS OF THE ORGANIZATION Improved business mix, enhanced product offerings & stronger customer relationships = better positioning. Diversified revenue streams (product & geography). Increasing focus on multi-year / enterprise contracts. Electronic platforms provide stability, adaptability. Synergy savings and product development benefits of combination not expected to be impacted by macro-economic environment.

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ORGANIZATIONAL STRUCTURE AND ORGANIZATIONAL CHART

CEO

MARKET DIVISION

PROFESSIONAL DIVISION

CORPORATE DIVISION

CEO

CEO

CEO

EXECUTIVE VP

EXECUTIVE VP

EXECUTIVE VP

VP

VP

VP

MANAGER

MANAGER

MANAGER

TEAM LEAD

TEAM LEAD

TEAM LEAD

MARKET PROFILE OF THE ORGANIZATION Thomson Reuters is one of the leading companies in the world. It has its branches in over 90 countries. •

The Foundation continues to raise standards in the way environmental issues are reported, running journalism workshops focused on writing environmental news. Courses have taken place in countries including Colombia, Mexico, Germany, Lebanon, Vietnam, the U UK K and South Africa.

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The Foundation works in partnership with the Com+ Alliance of Communicators for Sustainable Development, a group of international organizations committed to using communications to advance

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sustainable development projects. Courses funded by the Alliance range from reporting on water in Costa Rica to the importance of ecosystems services to development, and a program preparing journalists for coverage of the 2007 G8+ Climate Change Dialogue. •

The Foundation also continues to sponsor the International Union for Conservation of Nature and Natural Resources media award for Excellence in Environmental Journalism. The 2006 Reuters-IUCN prize was awarded to Marina Walker Guevara of Argentina for her story “The children of lead” (Los ninos del plomo).

Because of the diversified product and services Thomson Reuters has managed since 1799 till now so we can say that the company has got a good potential and a hand on experience to deal with any kind of situation.

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3.1. WORK PROFILE (ROLES AND RESPONSIBILITY) Thomson Reuters Estimates is a global provider of quality real-time financial forecast information, serving the research and analytic needs of thousands of companies in the financial services, media and corporate markets. I was holding the position of the Market Analyst in the Estimate department the basic duty was analyzing the financial data for the North American companies; the basic aim was to achieve the ACT i.e. Accuracy, Correctness and Timeliness of the data’s. The main aim was to achieve the accuracy with the speed. The data were taken from different reports and were to be analyzed and put in the database such that it’s located in the product within few seconds after its been put into the database. Since there was no supervisory activity on the moment when the data is feed into the database we were more careful as a single mistake may lead to a loss of many millions to the customers. The other role was to help the front desk people with the client queries arise out of the market or due to the differences in the product of the competitors, we were the production level or 3rd level resolver of the queries if the 1st and 2nd level were not able to solve the problem only than we were requested to take the call for the particular client. 3.2. DESCRIPTION OF LIVE EXPERIENCE This training has helped me a lot in understanding the realities of the outside world. I also come to know the real meanings of the word Business. There are both negative and positive experiences of our training. Some of these are: 1. Real exposure to the corporate world, which helped me a lot in understanding the mindset of executives to a certain extent. 2. Learned about the different kind of MIS used by the company. 3. It helped me in improving my communication skills, presentation skills and how to behave in front of corporate executives. Apart from these positive experiences I faced certain problems too which I would like to discuss here: 1. It was quite difficult in the beginning to cope with college studies and job. 2. Initially it took some time to understand the process of some software, however with time I understood the problem and worked on it sincerely. Now I can confidently use this software. 3. I have also learned that how a team works and how effective can be the team work.

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3.3. CONTRIBUTION TO ORGANIZATION As a management student and as the trainee I was given the chance to work with such a big organization which is really great opportunity for any student. I was entrusted with the work which all the individual was doing in the organization for estimate department. This department was the backbone for the product so I was forming a important part in the organization in this department. I was live on the database within a month of my training there were many others who were not able to achieve that, I was looking into the American market and had got 40 Brokers for whom I needed to have the updates for every company in America.

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4.1. STATEMENT OF RESEARCH PROBLEM Investor in today’s world needs information and we as Thomson Reuters is providing the information’s to the business and professionals. The main role in the investment is paid by the company’s growth which is measured by the different kind of ratios. The investor gets a clear picture whether to invest in the company or not to invest by looking into these ratios. Not just the investor but the information is needed by the researchers, bankers, government etc. so as to get the credit worthiness and other aspects such as tax etc. for such a decision the ratios are needed and that’s why my research topic is “Fundamental Analysis”. 4.2. STATEMENT OF RESEARCH OBJECTIVE Primary Objective: •

To know about the corporate culture

•

To know about Financial Industry

•

The role of fundamental analysis of a company which leads to decision making by the investors

Secondary objective:

•

To study the financial statement of any organization

•

To know the practical application of the financial statement in the investment decision

•

To perform ratio analysis of the financial statement

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4.3. RESERCH DESIGN AND METHODOLOGY A research design is the arrangement of condition for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. It is basically an outline of how researcher should proceed for the research. The study undertaken is descriptive in nature, as it includes facts finding, enquiries of different kinds. The main characteristics of descriptive research are that the researcher has no control over the variables; the researchers can only measure what is happening and what has happened. So my research is “Fundamental Analysis”. As I will be just relying on secondary data, I will be presenting the information based on the data as already exists, because of which the study become descriptive. Sources The main source of the data is from the reports that are being given by the research reports and form the Thomson Reuters product such as Reuter’s knowledge and Factiva. The research reports are also given as the excel sheets as the universal files.

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4.4. ANALYSIS OF DATA The data are analysed form the reports of the brokers the basic things that a report was comprised was the financial statement of any company. These reports were than kept in the order of the product which uses the following data points as the investment those were: Sales: A sale is the pinnacle activity involved in selling products or services in return for money or other compensation. It is an act of completion of a commercial activity.[1]

The "deal is closed", means the customer has consented to the proposed product or service by making full or partial payment (as in case of installments) to the seller. A sale is completed by the seller, the owner of the goods. It starts with consent (or agreement) to an acquisition or appropriation or request followed by the passing of title (property or ownership) in the item and the application and due settlement of a price, the obligation for which arises due to the seller's requirement to pass ownership, being a price the seller is happy to part with ownership of or any claim upon the item. The purchaser, though a party to the sale, does not execute the sale, only the seller does that. To be precise the sale completes prior to the payment and gives rise to the obligation of payment. If the seller completes the first two above stages (consent and passing ownership) of the sale prior to settlement of the price the sale is still valid and gives rise to an obligation to pay. .

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Earnings before interest, tax, depreciation and amortization (EBITDA): An indicator of a company's financial performance which is calculated as follows:

EBITDA can be used to analyze and compare profitability between companies and industries because it eliminates the effects of financing and accounting decisions. However, this is a non-GAAP measure that allows a greater amount of discretion as to what is (and is not) included in the calculation. This also means that companies

often

change

the items

included

in

their

EBITDA calculation from one reporting period to the next.

Operating profit: The profit earned from a firm's normal core business operations. This value does not include any profit earned from the firm's investments (such as earnings from firms in which the company has partial interest) and the effects of interest and taxes. Also known as "earnings before interest and tax" (EBIT).

Calculated as:

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Earnings before interest and tax (EBIT): The basic difference between operating profit and EBIT is the profit/loss from j.v.operation. Profit before Tax (PBT): A profitability measure that looks at a company's profits before the company has to pay corporate income tax. This measure deducts all expenses from revenue including interest expenses and operating expenses, but it leaves out the payment of tax. This measure combines all of the company's profits before tax, including operating, nonoperating, continuing operations and non-continuing operations. PBT exists because tax expense is constantly changing and taking it out helps to give an investor a good idea of changes in a company's profits or earnings from year to year. Also referred to as "earnings before tax”.

Profit after Tax (PAT): A company's potential cash earnings if its capitalization were unleveraged (that is, if it had no debt). Also known as NOPAT, NOPAT is frequently used in economic value added (EVA) calculations. NOPAT = Operating Income x (1 - Tax Rate)

NOPAT is a more accurate look at operating efficiency for leveraged companies. It does not include the tax savings many companies get because they have existing debt

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Net Profit (N/p): Net income is equal to the income that a firm has after subtracting costs and expenses from the total revenue. Net income can be distributed among holders of common stock as a dividend or held by the firm as retained earnings. Net income is an accounting term; in some countries (such as the UK) profit is the usual term[citation needed]. Often, the term income is substituted for net income, yet this is not preferred due to the possible ambiguity.

The items deducted will typically include tax expense, financing expense (interest expense), and minority interest. Likewise, preferred stock dividends will be subtracted too, though they are not an expense. For a merchandising company, subtracted costs may be the cost of goods sold, sales discounts, and sales returns and allowances. For a product company advertising, manufacturing, and design and development costs are included.

An equation for net income in merchandising:

Net income or Net loss = Revenue – Cost of goods sold – Sales discounts – Sales returns and allowances – Expenses – Minority interest – Preferred stock dividends

Earnings per Share (EPS): The portion of a company's profit allocated to each outstanding share of common stock. EPS serves as an indicator of a company's profitability.

Calculated as:

Earnings per Share (EPS)

In the EPS calculation, it is more accurate to use a weighted average number of shares outstanding over the reporting term, because the number of shares outstanding can change over time. However, data sources sometimes simplify the calculation by using the number of shares outstanding at the end of the period.

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Diluted EPS expands on basic EPS by including the shares of convertibles or warrants outstanding in the outstanding shares number. Earnings per share are generally considered to be the single most important variable in determining a share's price. It is also a major component of the price-to-earnings valuation ratio. FFOPS: A figure used by real estate investment trusts (REITs) to define the cash flow from their operations. It is calculated by adding depreciation and amortization expenses to earnings, and sometimes quoted on a per share basis. The FFOper-share ratio should be used in lieu of EPS when evaluating REITs and other similar investment trusts.

Dividends per Share (DPS): The proportion of declared dividends for every ordinary share issued. Dividend per share (DPS) is the total dividends paid out over an entire year (including interim dividends but not including special dividends) divided by the outstanding ordinary shares issued.

DPS can be calculated by using the following formula:

D - Sum of dividends over a period (usually 1 year) SD - Special, one time dividends S - Shares outstanding for the period Dividends over the entire year (not including any special dividends) must be added together for a proper calculation of DPS, including interim dividends. Special dividends are dividends which are only expected to be issued once. The total number of ordinary shares outstanding is sometimes calculated using the weighted average over the reporting period.

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Cash flow per Share (CFPS): In financial accounting, operating cash flow (OCF), cash flow provided by operations or cash flow from operating activities refers to the amount of cash a company generates from the revenues it brings in, excluding costs associated with long-term investment on capital items or investment in securities.

Operating cash flow = Cash generated from operations less taxation and interest paid, investment income received and less dividends paid gives rise to operating cash flows per International Financial Reporting Standards (IFRS).

To calculate cash generated from operations, one must calculate cash generated from customers and cash paid to suppliers. The difference between the two reflects cash generated from operations.

Cash generated from customers

Revenue as reported - Increase (decrease) in trade receivables - Investment income (disclosed separately) - Other income that is non cash and non sales related

Cash paid to suppliers Costs of sales + Other expenses as reported less - Increase (decrease) in trade payables - Noncash items such as depreciation, provisioning, impairments, bad debts, etc. - financing expenses

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Operating Cash Flow vs. Net Income, EBIT, and EBITDA Since it adjusts for liabilities, receivables, and depreciation, operating cash flow is a more accurate measure of how much cash a company has generated (or used) than traditional measures of profitability such as net income or EBIT. For example, a company with numerous fixed assets on its books (e.g. factories, machinery, etc.) would likely have decreased net income due to depreciation; however, as depreciation is a non-cash expense the operating cash flow would provide a more accurate picture of the company's current cash holdings than the artificially low net income.

Book value per Share (BVPS): A financial measure that represents a per share assessment of the minimum value of a company's equity. More specifically, this value is determined by relating the original value of a firm's common stock adjusted for any outflow (dividends and stock buybacks) and inflow (retained earnings) modifiers to the amount of shares outstanding. Calculated as:

While book value of equity per share is one factor that investors can use to determine whether a stock is undervalued, this metric should not be used by itself as it only presents a very limited view of the firm's situation. BVPS provides a snap shot of a firm's current situation, but considerations of the firm's future are not included.

Net Asset value per Share (NAVPS): A method of valuing a company on a per-share basis by measuring its equity after removing any intangible assets. Also know as tangible book value per share. The tangible book value per share is calculated as follows:

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A company's tangible book value looks at what common shareholders can expect to receive if the firm goes bankrupt and all of its assets are liquidated at their book values. Intangible assets, such as goodwill, are removed from this calculation because they cannot be sold during liquidation. Companies with high tangible book value per share provide shareholders with more insurance in case of bankruptcy.

Capital expenditure (CAPEX): Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment. This type of outlay is made by companies to maintain or increase the scope of their operations. These expenditures can include everything from repairing a roof to building a brand new factory. The amount of capital expenditures a company is likely to have depends on the industry it occupies. Some of the most capital intensive industries include oil, telecom and utilities. In terms of accounting, an expense is considered to be a capital expenditure when the asset is a newly purchased capital asset or an investment that improves the useful life of an existing capital asset. If an expense is a capital expenditure, it needs to be capitalized; this requires the company to spread the cost of the expenditure over the useful life of the asset. If, however, the expense is one that maintains the asset at its current condition, the cost is deducted fully in the year of the expense.

Return on Assets (ROA): An indicator of how profitable a company is relative to its total assets. ROA gives an idea as to how efficient management is at using its assets to generate earnings. Calculated by dividing a company's annual earnings by its total assets, ROA is displayed as a percentage. Sometimes this is referred to as "return on investment".

Note: Some investors add interest expense back into net income when performing this calculation because they'd like to use operating returns before cost of borrowing. ROA tells you what earnings were generated from invested capital (assets). ROA for public companies can vary substantially and will be highly dependent

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on the industry. This is why when using ROA as a comparative measure, it is best to compare it against a company's previous ROA numbers or the ROA of a similar company. The assets of the company are comprised of both debt and equity. Both of these types of financing are used to fund the operations of the company. The ROA figure gives investors an idea of how effectively the company is converting the money it has to invest into net income. The higher the ROA number, the better, because the company is earning more money on less investment. For example, if one company has a net income of $1 million and total assets of $5 million, its ROA is 20%; however, if another company earns the same amount but has total assets of $10 million, it has an ROA of 10%. Based on this example, the first company is better at converting its investment into profit. When you really think about it, management's most important job is to make wise choices in allocating its resources. Anybody can make a profit by throwing a ton of money at a problem, but very few managers excel at making large profits with little investment.

Return on Equity (ROE): A measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested. Calculated as:

Also known as "Return on Net Worth" (RONW). The ROE is useful for comparing the profitability of a company to that of other firms in the same industry. There are several variations on the formula that investors may use: 1. Investors wishing to see the return on common equity may modify the formula above by subtracting preferred dividends from net income and subtracting preferred equity from shareholders' equity, giving the following: return on common equity (ROCE) = net income - preferred dividends / common equity. 2. Return on equity may also be calculated by dividing net income by average shareholders' equity. Average shareholders' equity is calculated by adding the

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shareholders' equity at the beginning of a period to the shareholders' equity at period's end and dividing the result by two. 3. Investors may also calculate the change in ROE for a period by first using the shareholders' equity figure from the beginning of a period as a denominator to determine the beginning ROE. Then, the end-of-period shareholders' equity can be used as the denominator to determine the ending ROE. Calculating both beginning and ending ROEs allows an investor to determine the change in profitability over the period.

4.5 SUMMARY OF FINDING I have found from the above research that the main ratios which are used by the companies, government, law, bankers, investors are many but these are the main ratios yes there are some ratios which are not considered as the company is doing their research on these ratios and data points. The company has to put some more ratios and data points such as ROI, ROCI, etc. there are many a thing that could be implemented in the ratios such as providing the investors with the guidelines whether to go for investment or to hold.

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5.1. SUMMARY OF LEARNING EXPERIENCE I have learnt a lot in the organization as a management trainee the first thing I got to know is the organization culture that how the organization works actually? I really feel proud to be a part of the organization as the company is the largest company in term of valuation in the world and is one of the leading financial institutions in the world. The Manager, Team Lead Mr. Ajeya Nagesh is really a great person to be with, as a trainee whatever were the problem were solved by the colleagues in the company and for the first time I became aware of the Finance utilization in any organization and how important is finance for any organization and how the investor and other people can use the financial statement as their decision for investment or otherwise. 5.2 CONCLUSION AND RECOMMENDATION I would like to thank the organization for giving me such an opportunity to work with. I am really thankful to my colleagues and my manager and my team lead who initiated and pushed me to the limits where I can reach and helped me a lot in the process of learning. Recommendations: Thomson Reuters should emphasis on these areas: 1. They should try to improve the product by lessening it as they have a large number of products so it’s not easy to maintain these products at one shot. 2. They should introduce some ratios such as ROI, ROCI etc. 3. They should give more practice time for the new joinee.