Sikkim Manipal University Synopsis of A Comprehensive Study of Working Capital Management of Thomson Reuters
Submitted By: Ajay.S Reg No. 511028961
MBA in Finance Specialization
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PROJECT SYNOPSIS TITLE OF THE PROJECT
Comprehensive Study of Working Capital Management of Thomson Reuters
Introduction: Working capital may be regarded as life blood of a business. Working capital management is a process of planning and controlling the level and mix of the current assets of the firm as well as financing these assets. A study of working capital is of major importance to internal and external analysis because of its close relationship with the day-to-day operation of a business. Even in a well-established business with a long history of successful operation, careful attention to the management of working capital results in greater profitability. Funds which are needed for short term purpose for the day-to-day expenses are known as working capital. The goal of working capital management is to manage each of the firm’s current assets and current liabilities. Working capital is also known as circulating capital or current capital or revolving capital. Working capital is that part of company’s capital which is used for purchasing raw material and involve in sundry debtors. We all know that current assets are very important for proper working of fixed assets. Suppose, if you have invested your money to purchase machines of company and if you have not any more money to buy raw material, then your machinery will no use for any production without raw material. From this example, you can understand that working capital is very useful for operating any business organization. We can also take one more liquid item of current assets that is cash. If you don’t have cash in hand, then you cannot pay for different expenses of company, and at that time your many business works may delay for not paying certain expenses. If we define working capital in very simple form, then we can say that working capital is the excess of current assets over current liabilities.
Importance of working capital: Main advantage of maintaining adequate amount of working capital are follows - Solvency of the business, company goodwill, easy loan from bank, cash discount on raw material purchase, regular supply of raw material, regular payment of salaries, wages and other day to day commitments, Exploitation of favorable market condition, ability to face crisis, quick and regular return on investment, high morale.
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OVERVIEW OF THE ORGANIZATION: Thomson Reuters is the world’s leading source of intelligent information for businesses and professionals. They combine industry expertise with i nnovative technology to deliver critical information to leading decision makers in the financial, legal, tax and accounting, healthcare, science and media markets, powered by the world’s most trusted news organization. Thomson Reuters shares are listed on the Toronto Stock Exchange (TSX: TRI) and the New York Stock Exchange (NYSE: TRI). This project is aimed at studying financial statements to understand the performance & Working Capital management of Thomson Reuters by analyzing financial position of past and present of the company.
Aims and Objective of the project: 1.
To ascertain the financial performance of Thomson Reuters.
2. To Study the financial statements and analyse the performance of Thomson Reuters. 3. To examine the liquidity position, profitability position, capital structure position, activity position and working capital management of Thomson Reuters. 4.
To Study the types of Working Capital of Thomson Reuters.
5. To Analyze the three point such as need, Optimum level of Working capital in Business and Working capital policies of business of Thomson Reuters.
Research Design and tools: Descriptive Study: Collecting financial data of Thomson Reuters carrying out fact finding investigation with adequate interpretation.
Sources of Data collections: Secondary Data: Financial statements such as: 1. P& L Account, Balance Sheet etc. 2. Websites, General documents, Reference books from Library etc which are readily available.
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Project Planning: S. no. 1
Task Title of the Project
Milestone Schedule 01-10-2010
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Synopsis
15-10-2010
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Collection of Data
16-10-2010 to 31-03-2011
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Analysis & Interpretation of Data First Draft of the Project Second Draft of the Project
01-04-2011 to 20-04-2011 28-04-2011 05-05-2011
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Third Draft of the Project
08-05-2011
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Final Draft of the Project (Submission)
12-05-2011
REFERENCES: Serial No
Book Name
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WORKING CAPITAL MANAGEMENT: STRATEGIES AND TECHNIQUES
Bhattacharya Hrishikes
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Towards Better Working Capital Management
Gopala Krishna Murthy G
Websites
www.scribd.com www.managementparadise.com http://www.planware.org/workingcapital.htm
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Author
Publisher
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Prentice hall of India
ICFAI
