*

Three Golden rules of accounting*

AR/AP*

NAV - & its formula*

Balance Sheet

(How it is prepared?) *

LIFO *

FIFO *

Bank Reconciliation Statement (How & Why it is prepared?) *

Interest *

Dividend *

Shares and Debentures *

Mutual funds *

Derivatives / Types of derivatives. *

Types of derivatives *

* *

Capital Market * Hedging*

_____________________________________________________________

*Additional Topics*

Classification of Accounting, Key Accounting Concepts, Fundamental

Accounting Assumptions, Accounting Policies

Types of Accounts, Double Entry system

Journal Entries, Posting to Ledger, Preparation of Trial Balance

Subsidiary Books

Rectification of Errors

Adjusting Entries

Bank Reconciliation

Inventory Valuation

Fixed Assets, Depreciation, Sale of assets

Preparation of Financial statements (P&L, Balance Sheet & Cash flow)

Ratio Analysis

*Also Find the Attachments for model test paper, balance sheet (Performa) & other detailed topics.*

*Update your knowledge really well and get back to us, so that we could schedule your interviews with the company officials. *

*Remember the interviews happen from Monday to Friday (any day) so please reach our office before 12 noon so that we could finish with the entire interview formalities and aptitude test the very same day!!*

Excel Shortcut Keys !

Key Meaning

F2

Edit the selected cell

F5

Go to a specific cell

F7

Spell check selected text and/or document

F11

Create chart

Ctrl + Shift + ;

Enter the current time

Ctrl + ;

Enter the current date

Alt + Shift + F1

Insert new worksheet

Shift + F3

Open the Excel formula window

Shift + F5

Bring up search box

Ctrl + A

Select all contents of worksheet

Ctrl + B

Bold highlighted selection

Ctrl + I

Italicize highlighted selection

Ctrl + C

Copy selected text

Ctrl + V

Paste

Ctrl + D

Fill

Ctrl + K

Insert link

Ctrl + F

Open find and replace options

Ctrl + G

Open go-to options

Ctrl + H

Open find and replace options

Ctrl + U

Underline highlighted selection

Ctrl + Y

Underline selected text

Ctrl + 5

Strikethrough highlighted selection

Ctrl + O

Open options

Ctrl + N

Open new document

Ctrl + P

Open print dialog box

Ctrl + S

Save

Ctrl + Z

Undo last action

Ctrl + F9

Minimize current window

Ctrl + F10

Maximize currently selected window

Ctrl + F6

Switch between open workbooks/windows

Ctrl + Page up & Page Down

Move between Excel worksheets in the same document

Ctrl + Tab

Move between two or more open Excel files

Alt + =

Create formula to sum all of above cells

Ctrl +

Insert value of above cell into current cell

Ctrl + Shift + !

Format number in comma format

Ctrl + Shift + $

Format number in currency format

Ctrl + Shift + #

Format number in date format

Ctrl + Shift + %

Format number in percentage format

Ctrl + Shift + ^

Format number in scientific format

Ctrl + Shift + @

Format number in time format

Ctrl +

Move to next section of text

Ctrl + Space

Select entire column

Shift + Space

Select entire row

Ctrl + W

Close document

Following are some shortcut keys of MS excel F2 -Edit the selected cell. F5 -Go to a specific cell. For example, C6. F7 -Spell check selected text and/or document. F11 -Create chart. Ctrl + Shift + ; -Enter the current time. Ctrl + ; -Enter the current date. Alt + Shift + F1 -Insert New Worksheet. Shift + F3 -Open the Excel formula window. Shift + F5 -Bring up search box. Ctrl + A -Select all contents of the worksheet. Ctrl + B -Bold highlighted selection. Ctrl + I -Italic highlighted selection. Ctrl + K -Insert link. Ctrl + U -Underline highlighted selection. Ctrl + 5 -Strikethrough highlighted selection. Ctrl + P -Bring up the print dialog box to begin printing. Ctrl + Z -Undo last action. Ctrl + F9 -Minimize current window. Ctrl + F10 -Maximize currently selected window. Ctrl + F6 -Switch between open workbooks / windows. Ctrl + Page up -Move between Excel work sheets in the same Excel document. Ctrl + Page -down -Move between Excel work sheets in the same Excel document. Ctrl + Tab -Move between Two or more open Excel files. Alt + = -Create a formula to sum all of the above cells Ctrl + ' -Insert the value of the above cell into cell currently selected. Ctrl + Shift + ! -Format number in comma format. Ctrl + Shift + $ -Format number in currency format. Ctrl + Shift + # -Format number in date format.

Ctrl + Shift + % -Format number in percentage format. Ctrl + Shift + ^ -Format number in scientific format. Ctrl + Shift + @ -Format number in time format. Ctrl + Arrow key -Move to next section of text. Ctrl + Space -Select entire column. Shift + Space -Select entire row.

Ctrl+A Ctrl+B Ctrl+C Ctrl+D Ctrl+F Ctrl+G Ctrl+H Ctrl+I Ctrl+K Ctrl+N Ctrl+O Ctrl+P Ctrl+R Ctrl+S Ctrl+U Ctrl+V Ctrl W Ctrl+X Ctrl+Y Ctrl+Z F1 F2

Select All Bold Copy Fill Down Find Goto Replace Italic Insert Hyperlink New Workbook Open Print Fill Right Save Underline Paste Close Cut Repeat Undo Help Edit

None Format, Cells, Font, Font Style, Bold Edit, Copy Edit, Fill, Down Edit, Find Edit, Goto Edit, Replace Format, Cells, Font, Font Style, Italic Insert, Hyperlink File, New File, Open File, Print Edit, Fill Right File, Save Format, Cells, Font, Underline, Single Edit, Paste File, Close Edit, Cut Edit, Repeat Edit, Undo Help, Contents and Index None

F3 F4 F4

Paste Name Repeat last action While typing a formula, switch between absolute/relative refs Goto Next Pane Spell check Extend mode Recalculate all workbooks Activate Menubar New Chart Save As Insert Current Time Insert Current Date Copy Value from Cell Above Copy Fromula from Cell Above Hold down shift for additional functions in Excels menu Whats This? Edit cell comment Paste function into formula Find Next Find Previous Pane Add to selection Calculate active worksheet Display shortcut menu New worksheet Save Define name Close XL, Restore window size Next workbook window

Insert, Name, Paste Edit, Repeat. Works while not in Edit mode. None

F5 F6 F7 F8 F9 F10 F11 F12 Ctrl+: Ctrl+; Ctrl+" Ctrl+ Shift

Edit, Goto None Tools, Spelling None Tools, Options, Calculation, Calc,Now N/A Insert, Chart File, Save As None None Edit, Paste Special, Value Edit, Copy none

Shift+F1 Shift+F2 Shift+F3 Shift+F4 Shift+F5 Shift+F6 Shift+F8 Shift+F9 Shift+F10 Shift+F11 Shift+F12 Ctrl+F3 Ctrl+F4 Ctrl+F5 Ctrl+F6

Help, Whats This? Insert, Edit Comments Insert, Function Edit, Find, Find Next Edit, Find, Find Next None None Calc Sheet None Insert, Worksheet File, Save Insert, Names, Define File, Close Restore Window, ...

Shift+Ctrl+F6 Ctrl+F7 Ctrl+F8 Ctrl+F9 Ctrl+F10 Ctrl+F11

Previous workbook window Move window Resize window Minimize workbook Maximize or restore window Inset 4.0 Macro sheet

Window, ... XL, Move XL, Size XL, Minimize XL, Maximize None in Excel 97. In versions prior to 97 Insert, Macro, 4.0 Macro File, Open Insert, Chart... File, Save As File, Exit Tools, Macro, Macros in Excel 97 Tools,Macros - in earlier versions Tools, Macro, Visual Basic Editor Insert, Name, Create

Ctrl+F12 Alt+F1 Alt+F2 Alt+F4 Alt+F8

File Open Insert Chart Save As Exit Macro dialog box

Alt+F11 Ctrl+Shift+F3

Visual Basic Editor Create name by using names of row and column labels Previous Window Print New worksheet Save AutoSum Toggle Value/Formula display Insert argument names into formula Display AutoComplete list Format Style dialog box General format Comma format Time format Date format Currency format

Ctrl+Shift+F6 Ctrl+Shift+F12 Alt+Shift+F1 Alt+Shift+F2 Alt+= Ctrl+` Ctrl+Shift+A Alt+Down arrow Alt+ Ctrl+Shift+~ Ctrl+Shift+! Ctrl+Shift+@ Ctrl+Shift+# Ctrl+Shift+$

Window, ... File, Print Insert, Worksheet File, Save No direct equivalent Tools, Options, View, Formulas No direct equivalent None Format, Style Format, Cells, Number, Category, General Format, Cells, Number, Category, Number Format, Cells, Number, Category, Time Format, Cells, Number, Category, Date Format, Cells, Number,

Category, Currency Ctrl+Shift+% Ctrl+Shift+^ Ctrl+Shift+& Ctrl+Shift+_ Ctrl+Shift+* Ctrl++ Percent format Exponential format Place outline border around selected cells Remove outline border Select current region Insert Format, Cells, Number, Category, Percentage Format, Cells, Number, Category, Format, Cells, Border Format, Cells, Border Edit, Goto, Special, Current Region Insert, (Rows, Columns, or Cells) Depends on selection Delete, (Rows, Columns, or Cells) Depends on selection Format, Cells Format, Cells, Font, Font Style, Bold Format, Cells, Font, Font Style, Italic Format, Cells, Font, Font Style, Underline Format, Cells, Font, Effects, Strikethrough Tools, Options, View, Objects, Show All/Hide View, Toolbars, Stardard None Format, Row, Hide Format, Column, Hide Format, Row, Unhide Format, Column, Unhide None None None None None

Ctrl+-

Delete

Ctrl+1 Ctrl+2 Ctrl+3 Ctrl+4 Ctrl+5 Ctrl+6 Ctrl+7 Ctrl+8 Ctrl+9 Ctrl+0 Ctrl+Shift+( Ctrl+Shift+) Alt or F10 Ctrl+Tab Shift+Ctrl+Tab Ctrl+Tab Shift+Ctrl+Tab

Format cells dialog box Bold Italic Underline Strikethrough Show/Hide objects Show/Hide Standard toolbar Toggle Outline symbols Hide rows Hide columns Unhide rows Unhide columns Activate the menu In toolbar: next toolbar In toolbar: previous toolbar In a workbook: activate next workbook In a workbook: activate previous workbook

Tab Shift+Tab Enter Shift+Ctrl+F Shift+Ctrl+F+F Shift+Ctrl+P

Next tool Previous tool Do the command Font Drop Down List Font tab of Format Cell Dialog box Point size Drop Down List

None None None Format, Cells, Font Format, Cells, Font Format, Cells, Font

Each type has a structure for conjugation and is given an auxiliary to perform it. Since there are only three auxiliaries and to be fair we give an auxiliary to each category. Therefore, Do is used with simple tenses, Be with progressives, and Have with Perfect Tenses. The time is divided into three parts: The Past, the Present, and the Future, so each type of tenses has three parts.

CHART OF TENSES

1. Match the following verbs in bold type with a suitable tense: 1. 2. 3. 4. 5. 6. 7. 8. I have never been abroad. It is raining right now. They live in the country. By the time we arrived to the stadium, the match had already started. Did you travel last summer? She will probably arrive tonight. We will have finished before you arrive. While we were having dinner, the lights went out. A. Simple pre. 9. Where do you live? B. Present cont. 10.He doesnt get up early on Sundays. C. Simple Past 11.We shall be studying physics at this same time tomorrow. D. Past cont. 12.What are you doing? E. Simple Fu. 13.Im listening to classical music. F. Future Cont. 14.After she had cleaned the house, she prepared lunch. G. Present Per. 15.Where were you yesterday morning? H. Past Perf. 16.I was at home. I. Future Per. 17.What were you doing? 18.I was revising for the next test. 19.When I got home, my parents had already eaten dinner. 20.How often does he read the newspaper? 21.She rarely helps her mother. 22.What time will you leave? 23.Are you busy now? 24.My mother was cooking dinner while I was doing my homework. 25.He has just finished his work. 26.They will have covered the program by the end of May. 27.Ill be reading when you arrive. 28.As soon as the bell rang, the students left the classroom. 29.Have you ever seen an elephant? 30.Does he ever smoke? 31.He has already had breakfast. 32.What do you do? 33.What did you do last night? 34.Whats the matter with you? 35.They havent got time to fix the car. 36.He usually believes you. 37.Previous climbers had cut steps in the ice

38. Somebody had cleaned my shoes and brushed my suit.

Documents need to carry:

1. 2. 3. 4. 2 copies of your cv (Mention Sonali Shinde Analyst Finance on your cv) 2 copies of your graduation mark sheet 2 passport size photographs Photo identity proof.

Contact Person: Sonali Shinde Please be prepared on below mentioned topics: Please be prepared on below mentioned topics:
What is capital market?

What are Derivatives and types of derivative call & put options (with defination)(With differences) Following are types of derivatives: future, forwards, swaps, options, leaps

Different types of markets (capital markets, money markets, primary & secondary markets, mutual funds) Bullish bearish markets Money market Debentures OTC Bonds

Why are derivatives important Equity

Cap: Collar: Dealer: Derivative: End-User: Floor: Forward: Future: Notional Amount: Option: Swap: Swaption: Underlying Reference: An option-like contract ~hat protects the holder against a rise in interest rates or a change in some other underlying reference beyond a certain level. The simultaneous purchase of a cap and sale of a floor with the objective of maintaining interest rates, or some other underlying reference, within a defined range.

A counterparty who enters into a [derivatives transaction] in order to earn tees or trading profits, serving customers as an intermediary. A contract whose vah, e depends on (or derives from) the value of an tmderlying asset, typicall5 a security, commodits; reference rate, or index. A counterparty who engages in a [derivatives transaction] to manage its interest rate or currency exposure. kaa option-like contract that protects the holder against a decline in interest rates or some other underlying reference beyond a certain level. A contract obligating one counterpart5 to buy and the other to sell a specific asset for a fixed price at a future date. A for\yard contract traded on an exchange. The principal amount upon which interest and other payments in a transaction are based. A contract giving the holder the right, but not the obligation, to buy (or sell) a specific quantity of an asset for a fixed price during a specified period. An agreement by two parties to exchange a series of cash flows in the future. An option giving the holder the right to enter (or cancel) a swap transaction. The asset, reference rate, or index whose price movement helps determine the value of tim derivative.

FINANCIAL DERIVATIVES Financial derivatives have crept into the nation's popular economic vocabulary on a wave of recent publicity about serious financial losses suffered by municipal governments, well-known corporations, banks and mutual funds that had invested in these products. Congress has held hearings on derivatives and financial commentators have spoken at length on the topic. Derivatives, however remain a type of financial instrument that few of us understand and fewer still fully appreciate, although many of us have invested indirectly in derivatives by purchasing mutual funds or participating in a pension plan whose underlying assets include derivative products. In a way, derivatives are like electricity. Properly used, they can provide great benefit. If they are mishandled or misunderstood, the results can be catastrophic. Derivatives are not inherently "bad." When there is full understanding of these instruments and responsible management of the risks, financial derivatives can be useful tools in pursuing an investment strategy. This brochure attempts to familiarize the reader with financial derivatives, their use and the need to appreciate and manage risk. It is not a substitute, however, for seeking competent professional advice before becoming involved in a financial derivative product. What is a Derivative? In short, a derivative is a contractual relationship established by two (or more) parties where payment is based on (or "derived" from) some agreed-upon benchmark. Since individuals can "create" a derivative product by means of an agreement, the types of derivative products that can be developed are limited only by the human imagination. Therefore, there is no definitive list of derivative products. Some common financial derivatives, however, are described at the end of this brochure (See, Description of Common Financial Derivatives ). When one enters into a derivative product arrangement, the medium and rate of repayment are specified in detail. For instance, repayment may be in currency,

securities or a physical commodity such as gold or silver. Similarly, the amount of repayment may be tied to movement of interest rates, stock indexes or foreign currency. Derivative products also may contain leveraging. Leveraging acts to multiply (favorably or unfavorably) the impact on the total repayment obligations of the parties to the derivative instrument. Why Have Derivatives? Derivatives are risk-shifting devices. Initially, they were used to reduce exposure to changes in foreign exchange rates, interest rates, or stock indexes. For example, if an American company expects payment for a shipment of goods in British Pound Sterling, it may enter into a derivative contract with another party to reduce the risk that the exchange rate with the U.S. Dollar will be more unfavorable at the time the bill is due and paid. Under the derivative instrument, the other party is obligated to pay the company the amount due at the exchange rate in effect when the derivative contract was executed. By using a derivative product, the company has shifted the risk of exchange rate movement to another party. More recently, derivatives have been used to segregate categories of investment risk that may appeal to different investment strategies used by mutual fund managers, corporate treasurers or pension fund administrators. These investment managers may decide that it is more beneficial to assume a specific "risk" characteristic of a security. For instance, several derivative products may be created based on debt securities that represent an interest in a pool of residential home mortgages. One derivative product may provide that the purchaser receives only the interest payments made on the mortgages while another product may specify that the purchaser receives only the principal payments. These derivative products, which react differently to movements in interest rates, may have specific appeal to different investment strategies employed by investment managers. The financial markets increasingly have become subject to greater "swings" in interest rate movements than in past decades. As a result, financial derivatives have appealed to corporate treasurers who wish to take advantage of favorable interest rates in the management of corporate debt without the expense of issuing new debt securities. For example, if a corporation has issued long term debt with an interest rate of 7 percent and current interest rates are 5 percent, the corporate treasurer may choose to exchange (i.e., Swap), interest rate payments on the long term debt for a floating interest rate, without disturbing

the underlying principal amount of the debt itself. (See, Description of Common Financial Derivatives ). The Risks As derivatives are risk-shifting devices, it is important to identify and fully comprehend the risks being assumed, evaluate those risks and continuously monitor and manage those risks. Each party to a derivative contract should be able to identify all the risks that are being assumed (interest rate, currency exchange, stock index, long or short-term bond rates, etc.) before entering into a derivative contract. Part of the risk identification process is a determination of the monetary exposure of the parties under the terms of the derivative instrument. As money usually is not due until the specified date of performance of the parties' obligations, the lack of an up-front commitment of cash may obscure the eventual monetary significance of the parties' obligations. While investors and markets traditionally have looked to commercial rating services for an evaluation of the credit and investment risk of issuers of debt securities. Lately, some commercial firms have begun issuing ratings on a company's securities which reflect an evaluation of that company's exposure to derivative financial instruments to which it is a party. , the creditworthiness of each party to a derivative instrument must be evaluated independently by each counterparty. In a derivative situation, performance of the other party's obligations is highly dependent on the strength of its balance sheet. Therefore, a complete financial investigation of a proposed counterparty to a derivative instrument is imperative. An often overlooked, but very important aspect in the use of derivatives is the need for constant monitoring and managing of the risks represented by the derivative instruments. Unlike the purchase of an equity or debt security, one cannot enter into a derivative transaction, place the paperwork in a drawer and forget it. The relationships established in the derivative instrument require constant monitoring for signs of unacceptable change. For instance, the degree of risk which one party was willing to assume initially could change greatly due to intervening and unexpected events. Each party to the derivative contract should monitor continuously the commitments represented by the derivative product. If an individual is charged with this responsibility, this person should be held accountable for placing the party on notice when conditions change dramatically. Financial derivative instruments

that have leveraging features demand closer, even daily or hourly monitoring and management. Derivative instruments also may have special income tax and accounting considerations. For example, a Stripped Mortgage Backed Security (SMBS) splits the cash flows from an underlying pool of mortgages into classes, called "tranches" which represent different amounts of principal and interest. For example, one tranche may contain one-half of the principal and one-third of the interest on the underlying mortgages, while another may represent only interest payments. The type of SMBS purchased will determine how the income is taxed at the federal level. (See , Description of Common Financial Derivatives ). Leveraging Some derivative products may include leveraging features. These features act to multiply the impact of some agreed-upon benchmark in the derivative instrument. Negative movement of a benchmark in a leveraged instrument can act to increase greatly a party's total repayment obligation. Remembering that each derivative instrument generally is the product of negotiation between the parties for risk-shifting purposes, the leveraging component, if any, may be unique to that instrument. For example, assume a party to a derivative instrument stands to be affected negatively if the prime interest rate rises before it is obliged to perform on the instrument. This leveraged derivative may call for the party to be liable for ten times the amount represented by the intervening rise in the prime rate. Because of this leveraging feature, a small rise in the prime interest rate dramatically would affect the obligation of the party. A significant rise in the prime interest rate, when multiplied by the leveraging feature, could be catastrophic. Combined Derivative Products The range of derivative products is limited only by the human imagination. Therefore, it is not unusual for financial derivatives to be merged in various combinations to form new derivative products. For instance, a company may find it advantageous to finance operations by issuing debt, the interest rate of which, is determined by some unrelated index and where the company has exchanged the liability for interest payments with another party. This product combines a derivative known as a Structured Note with another derivative known as an interest rate Swap (See, Description of Common Financial Derivatives ).

Trading of Derivatives Some derivative products are traded on national exchanges. Regulation of national futures exchanges is the responsibility of the U.S. Commodities Futures Trading Commission. National securities exchanges are regulated by the U.S. Securities and Exchange Commission (SEC). Certain financial derivative products, like options traded on a national securities exchange, have been standardized and are issued by a separate clearing corporation to sophisticated investors pursuant to an explanatory offering circular. Performance of the parties under these standardized options is guaranteed by the issuing clearing corporation. Both the exchange and the clearing corporation are subject to SEC oversight. Other derivative products are traded over-the-counter (OTC) and represent agreements that are individually negotiated between parties. If you are considering becoming a party to an OTC derivative, it is very important to investigate first the creditworthiness of the parties obligated under the instrument so you have sufficient assurance that the parties are financially responsible. Disclosure of Derivative Investments by Mutual Funds and Public Companies Mutual funds and public companies are regulated by the SEC with respect to disclosure of material information to the securities markets and investors purchasing securities of those entities. The SEC requires these entities to provide disclosure to investors when offering their securities for sale to the public and mandates filing of periodic public reports on the condition of the company or mutual fund. The SEC recently has urged mutual funds and public companies to provide investors and the securities markets with more detailed information about their exposure to derivative products. The SEC also has requested that mutual funds limit their investment in derivatives to those that are necessary to further the fund's stated investment objectives. Selling of Derivative Products Some brokerage firms are engaged in the business of creating financial derivative instruments to be offered to retail investment clients, mutual funds, banks, corporations and government investment officers. While not all derivative products may be subject to the jurisdiction of the Pennsylvania

Securities Commission (Commission), these firms and their representatives generally are licensed by the Commission to conduct business in the Commonwealth of Pennsylvania. The Commission maintains a public record on each licensed brokerage firm and its agents that includes any disciplinary history. The Commission urges anyone who is approached to invest in a financial derivative product to do two things before you invest. First, ask the person to explain in detail how different economic scenarios will affect your investment in the derivative product (including the impact of any leveraging features). It is vital that you have a complete and thoroughunderstanding of the derivative product, and that the derivative makes good business sense to you. Second, call the Commission at 1-800-600-0007 (717-787-8061 outside PA) to request a copy of the broker's record. If you own shares in a mutual fund or participate in a pension plan and want to know if either the fund or the plan has invested in financial derivatives, read the annual or quarterly reports (including notes to the financial statements) and call or write the fund manager or pension plan administrator in order to receive a complete response to your inquiry. If you believe that a person registered with the Commission has sold you a derivative product that you believe was an unsuitable investment, you may contact the Commission's Division of Licensing and Compliance directly at (717) 787-5675. Description of Common Financial Derivatives:

Options. An Option represents the right (but not the obligation) to buy or sell a security or other asset during a given time for a specified price (the "Strike " price). An Option to buy is known as a "Call ," and an Option to sell is called a "Put. " You can purchase Options (the right to buy or sell the security in question) or sell (write) Options. As a seller, you would become obligated to sell a security to, or buy a security from, the party that purchased the Option. Options can be either "Covered " or "Naked ." In a CoveredOption, the contract is backed by the asset underlying the Option, e.g. , you could purchase a Put on 300 shares of the ABC Corp. that you now own. In a Naked Option, the contract is not backed by the security underlying the Option. Options are traded on organized exchanges and OTC. Forward Contracts. In a Forward Contract, the purchaser and its counterparty are obligated to trade a security or other asset at a specified

date in the future. The price paid for the security or asset is agreed upon at the time the contract is entered into, or may be determined at delivery. Forward Contracts generally are traded OTC. Futures. A Future represents the right to buy or sell a standard quantity and quality of an asset or security at a specified date and price. Futures are similar to Forward Contracts, but are standardized and traded on an exchange, and are valued, or "Marked to Market " daily. The Marking to Market provides both parties with a daily accounting of their financial obligations under the terms of the Future. Unlike Forward Contracts, the counterparty to a Futures contract is the clearing corporation on the appropriate exchange. Futures often are settled in cash or cash equivalents, rather than requiring physical delivery of the underlying asset. Parties to a Futures contract may buy or write Options on Futures. Stripped Mortgage-Backed Securities. Stripped Mortgage-Backed Securities, called "SMBS, " represent interests in a pool of mortgages, called "Tranches ," the cash flow of which has been separated into interest and principal components. Interest only securities, called "IOs ," receive the interest portion of the mortgage payment and generally increase in value as interest rates rise and decrease in value as interest rates fall. Where the underlying mortgages for an IO carry variable ("floating") rates of interest, the value of the IOs tend to increase in periods of rising interest rates due to anticipated higher interest payments on the underlying mortgages. For IOs that have underlying mortgages at a fixed rate, the value of IOs also tends to increase in value during periods of rising interest rates because individual homeowners are less likely to refinance and prepay their mortgages. The value of the SMBS would therefore, tend to increase over the "life" of the mortgage instrument. Principal only securities, called "POs ," receive the principal portion of the mortgage payment and respond inversely to interest rate movement. As interest rates go up, the value of the PO would tend to fall, as the PO becomes less attractive compared with other investment opportunities in the marketplace. Some Tranches may offer interest and principal payments in various combinations. Planned Amortization Classes "PACs, " for instance, provide stable interest and principal repayments if the rates of prepayments on the underlying mortgages stay within a specified predetermined range. Structured Notes. Structured Notes are debt instruments where the principal and/or the interest rate is indexed to an unrelated indicator. An example of a Structured Note would be a bond whose interest rate is

decided by interest rates in England or the price of a barrel of crude oil. Sometimes the two elements of a Structured Note are inversely related, so as the index goes up, the rate of payment (the "coupon rate") goes down. This instrument is known as an "Inverse Floater ." With leveraging, Structured Notes may fluctuate to a greater degree than the underlying index. Therefore, Structured Notes can be an extremely volatile derivative with high risk potential and a need for close monitoring. Structured Notes generally are traded OTC. Swaps. A Swap is a simultaneous buying and selling of the same security or obligation. Perhaps the best-known Swap occurs when two parties exchange interest payments based on an identical principal amount, called the "notional principal amount." Think of an interest rate Swap as follows: Party A holds a 10-year $10,000 home equity loan that has a fixed interest rate of 7 percent, and Party B holds a 10-year $10,000 home equity loan that has an adjustable interest rate that will change over the "life" of the mortgage. If Party A and Party B were to exchange interest rate payments on their otherwise identical mortgages, they would have engaged in an interest rate Swap. Interest rate swaps occur generally in three scenarios. Exchanges of a fixed rate for a floating rate, a floating rate for a fixed rate, or a floating rate for a floating rate. The "Swaps market" has grown dramatically. Today, Swaps involve exchanges other than interest rates, such as mortgages, currencies, and "cross-national" arrangements. Swaps may involve cross-currency payments (U.S. Dollars vs. Mexican Pesos) and crossmarket payments, e.g., U.S. short-term rates vs. U.K. short-term rates. Swaps may include "Caps ," "Floors ," or Caps and Floors combined ("Collars "). A derivative consisting of an Option to enter into an interest rate Swap, or to cancel an existing Swap in the future is called a "Swaption ." You can also combine a interest rate and currency Swap (called a "Circus " Swap). Swaps generally are traded OTC through Swap dealers, which generally consist of large financial institution, or other large brokerage houses. There is a recent trend for Swap dealers to Mark to Market the Swap to reduce the risk of counterparty default.

Derivative is an instrument that does not have a value of its own, rather it derives its value/price on the basis of some other instrument, hence the nameDerivative. For eg, Cheese, curd, ice-cream etc. can be termed as derivatives of milk products. Theirprice is dependent on the price of milk, which, in turn will depend on the demand and supply of milk. Have you not wondered how do Mutual Fund units tend to change daily? On what basis does that value change? Dont they derive the value from the value of individual securities in the portfolio of the schemes? Are they derivatives then? And what about the ADR/GDR of Satyam/Infosys which are traded on USA/England stock exchanges? Do they have their own value? Or even they derive their value from the shares in India? So, now I guess you get the point. Definition of Derivatives: Derivatives are financial instruments/contracts that derive their value from some other underlying/underlying asset.

First of all, let's remember that bears are sluggish and bulls spirited and burly. The terms are used to describe general actions and attitudes, or sentiment, either of an individual (bear and bull) or the market. A bear market refers to a decline in prices, usually for a period of a few months, in a single security or asset, group of securities or the securities market as a whole. A bull market is when prices are rising. The actual origins of these expressions are unclear. Here are two of the most frequent explanations given:

1. The terms "bear" and "bull" are thought to derive from the way in which each animal attacks its opponents. That is, a bull will thrust its horns up into the air, while a bear will swipe down. These actions were then related metaphorically to the movement of a market: if the trend was up, it was considered a bull market; if the trend was down, it was a bear market. 2. Historically, the middlemen in the sale of bearskins would sell skins they had yet to receive. As such, they would speculate on the future purchase price of these skins from the trappers, hoping they would drop. The trappers would profit from a spread - the difference between the cost price and the selling price. These middlemen became known as "bears", short for bearskin jobbers, and the term stuck for describing a downturn in the market. Conversely, because bears and bulls were widely considered to be opposites due to the once-popular blood sport of bull-and-bear fights, the term bull stands as the opposite of bears.

Read more: http://www.investopedia.com/ask/answers/129.asp#ixzz1wPjD7V6U e

Th term bear or bull

market describes how a particular section of the stock market is performing at any given time. If prices are rising it is considered a bull market. If prices are falling then it is a bear market. It is however, possible to earn a profit in either market. It is important to understand the concepts of supply and demand in order to do well in either the bear or the bull market. History It is said that the bear and bull markets got their names from their attack methods. Historically it was the nature of the bear to swipe down at its

opponent. The bull, on the other hand, would swipe up with its horns to attack a predator. Thus the bear represents downward trends and the bull represents up-ward trends. Another possible origin for the use of these two particular animals was the bear and bull fights that used to be popular. The two animals were considered to be opposites, so too are the markets they represent.

Bear Market A bear market refers to a market where the prices are falling. In a bear market investors believe that prices will continue to decrease. This down-ward trend means a weak economy and low employment rates (which include worker lay-offs). In a bear market the share prices are usually low. Share prices are low because investors are looking to sell. Investors see this downward trend and anticipate that in the future the stock that now has some value will decrease in value. Because so many shares are available, demand is low. When demand for shares is low, the shares are not as expensive. As with bull markets, bear markets are driven by investor expectations, emotions and reason. In a bear market, the investor sees that his shares are depreciating in value. He is afraid that he is going to loose all of his money and thus is anxious to sell. This type of investor is then more likely to take his money out of the stock market and into a place where he is guaranteed an increase. This only perpetuates the bear market. As more and more investors pull their money out of stocks the condition of the market decreases.

Bull Market A bull market refers to a market where prices are rising. In a bull market investors believe that prices will continue to increase. This up-ward trend means a strong economy and high employment levels. In a bull market the share or stock prices are usually high. The prices of these shares are high because there is a lot of demand for them. Other investors want these shares because they see that the company is doing well and assume that it will

continue to appreciate in value. The current share owners are more reluctant to sell their shares, making the shares that are available very valuable and thus more expensive. As with bear markets, bull markets are driven by investor expectations, emotions and reason. In a bull market, the investor sees that his shares are appreciating in value. He hopes to make more and more money and looks to buy more shares as a way of doing this. This investor has seen the pay-off of taking a risk and is more likely to keep putting money into the stock market. As a result, more money is put into the market and the condition of the stock market increases. Although the current condition of the stock market is up for debate and depends on the period of time you choose to examine, the long term results of the market have yielded positive returns.

What we do. Certainly more than make engines.

Yes, we build the world's most environmentally friendly and reliable diesel engines. And since the day we started, our specialists have produced them with one goal: to give our customers the power they need to do their jobs and live their lives - better. Across our entire organization, you'll find engineers, developers and technicians who are innovating, designing, testing, and building. You'll also find accountants, marketers, IT, purchasing, and supply-chain specialists who are working in ways that are just as advanced and innovative. We're on the cutting edge in every aspect of our companyfrom the technology that's inside our products to the processes we use to design, test and market them. We're also advanced in the way we partner with organizations around the worldwhether we're growing our business or growing our communities. This is what Working Right means. In order to offer maximum innovation and dependability, Cummins Inc. is divided into these distinct business units:

Cummins Engine Business

We manufacture and market diesel and natural gas powered engines from 31 to 3,500 horsepower for highway and offhighway use. These engines power everything from heavy-duty trucks and RVs to buses and pickup trucks. Our engines are also used for agriculture, construction, mining, marine and military applications. Explore the Cummins Engine Business Unit.

Cummins Power Generation Business

We provide power generation systems, components and services to customers around the world. Applications include standby power, distributed power generation and auxiliary power. Our products include diesel and alternative-fuel electrical generator sets, alternators, transfer switches, paralleling switchgear and generator set controls. Explore the Cummins Power Generation Business Unit.

Components Business Segment

This is our fastest-growing area and where we truly unleash the power of Cummins by adding value and innovation. Furthermore, we make being environmentally responsible our top priority, utilizing our industry-leading emissions technology that maximizes the use of engine components like fuel systems, turbochargers and after-treatment technology. This segment is made up of four businesses:

Cummins Turbo Technologies designs and manufactures turbochargers and related products. Cummins Emission Solutions develops catalytic exhaust systems and related products for the commercial diesel engine markets. Cummins Fuel Systems makes the most advanced high-pressure fuel systems and remanufactures electronic control modules and fuel systems. Cummins Filtration makes heavy-duty air, fuel, hydraulic and lube filtration, chemical and exhaust products.

Cummins Distribution Business

This is our comprehensive global service, and parts distribution and channel management organization. Capitalizing on synergies in parts and services, we support customers with company-owned distributors and joint ventures in more than 190 countries. Explore the Cummins Distribution Business Unit.

Cummins Sustainability Initiative

While not technically a business unit, this initiative includes thousands of specialists from every area of Cummins and helps us build partnerships that span the globe. It truly captures the essence of Working Right. Through our Sustainability Initiative, we touch people's lives with innovation, new ideas and caring. In the areas of corporate responsibility, environment, corporate governance, employee relations and financial strategy, people around the world are learning they can depend on Cummins. We're very proud of the partnerships we've created and proud of our accomplishments. Explore the Cummins Sustainability Initiative.

Vision and values. This is what really drives us.

What kind of company is Cummins? Dependable. Cutting-edge. Global. A company where our workforce partners with our customers to deliver the power they need to reach their goals. We also partner with our neighbors next door and people on the other side of the globe to help them reach their goals as well. You see, Working Right is just the way we do business. Our vision and values guide us in the way we work and in the way we treat others. They're the reason our people are excited and energized, and why our products are so exceptional. They define all of us.

Vision
Making people's lives better by unleashing the Power of Cummins

Mission
We unleash the Power of Cummins by:

Motivating people to act like owners working together. Exceeding customer expectations by always being the first to market with the best products. Partnering with our customers to make sure they succeed. Demanding that everything we do leads to a cleaner, healthier, safer environment. Creating wealth for all stakeholders.

Values

Integrity: Strive to do what is right and do what we say we will do. Innovation: Apply the creative ingenuity necessary to make us better, faster, first. Deliver Superior Results: Exceed expectations, consistently. Corporate Responsibility: Serve and improve the communities in which we live. Diversity: Embrace the diverse perspectives of all people and honor them with both dignity and respect. Global Involvement: Seek a worldview and act without boundaries.

Vision & Values Stories

An Education that's Down to EARTH EARTH University's vision is to produce ethical agricultural entrepreneurs who are committed to promoting economic, social and environmental well-being in their home communities. Located in Costa Rica, its mission is to prepare leaders with ethical values to contribute to the sustainable development of the humid tropics and to construct a prosperous and just society. Cummins designated EARTH a "signature" Corporate Responsibility project in 2009, awarding it a $6 million challenge grant by the Cummins Foundation. In addition, several senior leaders serve on EARTH boards or provide volunteer support to EARTH initiatives. Engineering Diversity Since it opened its doors in 1991, thanks to a grant from the Cummins India Foundation, the Cummins College of Engineering for Women (CCEW), based in Pune, India, has given more than 4,000 women the opportunity to pursue careers in the male-dominated world of engineering. With the opening of a new campus earlier this year in Nagpur,

school officials are striving to provide the same opportunities for women hundreds of miles away, across the Indian subcontinent. CCEW graduate Sayali Marathe began her career with a blue chip company in 2005 and then moved on to become a senior consultant. "CCEW," she says, "has contributed to my professionalism, communication and the 'never-say-die' attitude that makes us CCEW students stand apart!" A Catalyst for Courage The Courage Center in Minneapolis, Minnesota, empowers people with disabilities to realize their full potential in every aspect of life. The nonprofit organization was founded in1928 to provide tools, technologies and resources to improve the lives of children and adults with disabilities. As an engineer at Cummins Power Generation in Fridley, Minn., Mark Weber works on quality and warranty issues. But when he's at the Courage Center, he's an engineering magician, transforming toys and appliances so that children and adults with disabilities can use them with a slight move of the hand or a blink of an eye. Weber is among five current and retired Cummins engineers who volunteer their time and engineering skills at the Courage Center, which also receives financial support from the Cummins Foundation and Cummins Power Generation, along with volunteer support from the Community Involvement Team at Fridley.

Cummins expands again 10 November 2011 Cummins will add 600 new professional employees and build a new office building in downtown Columbus, IN. It is the third expansion project announced by Cummins in the past year. "Our success in global markets over the past few years allowed us to remain strong during the... Read More

Cummins named one of the best places to work 4 November 2011 Glassdoor recently named Cummins to its list of 50 best places to work. This is the only list that relies solely on the input from employees. So this list measures what its truly like to work at a company. Read more. Read More

Cummins named one of the Worlds Most Ethical Companies 28 October 2011 Cummins was named one of the "World's Most Ethical Companies" in 2010 by the Ethisphere Institute. The institute recognizes commitment to ethical leadership, compliance practices and corporate social responsibility. This is the fifth straight year that the Ethisphere Institute

Tim Solso named one of the Top 5 CEOs of the decade 10 October 2011 MarketWatch recently named the CEO of Cummins, Tim Solso, one of the Top 5 CEOs of the decade. Recognized by MarketWatch for turning the company around, he has helped Cummins become a leader again. Read

Locations
Cummins India began in 1962 when we opened our first facility in Kothrud, Pune. In the past 50 years, the dedication and talent of our employees have allowed us to expand our business across markets and geographies. For example, in Kothrud, Pune, our team manufactures diesel and natural gas engines for industrial, power generation and automotive markets. In Indore, our Turbo Technologies division has some of the world's leading engineers providing turbocharging solutions to other diesel engine manufacturers. Our highly trained Research and Technology division in Pune uses high-end computer-aided design and engineering analysis tools to support analysis-led design initiatives for Cummins locations all over the world.

Products
Today we're a power leader, employing over 11,000 of the best and brightest in our industry who design, manufacture, distribute and service engines, generators and related technologies. This includes a full array of engine-related products, from diesel and natural gas engines for industrial, power generation and automotive markets to alternators and turbocharging solutions. Our highly motivated and productive staff of professionals also design and manufacture exhaust systems and exhaust after-treatment systems, B-series engines, a complete range of lubricants comprising engine oils and industrial oils, as well as various industry-leading products for air, fuel, filters and coolants.

Positions
There are many exciting opportunities for you to showcase your talent at any one of our locations across India. If your expertise is manufacturing, we have positions in Process Planning Machining and Process Planning Assembly. If engineering is your passion, we have positions in Controls, Application, Design, Development, Mechanical, Manufacturing, Industrial, Quality and more. We also have openings in Research and Technology/R&D, Health, Safety and Environment, SCM/Operations, Sourcing and Procurement (Direct and Indirect), Supplier Quality Improvement, Six Sigma, Value Package Introduction, HR, and Finance. We also have a host of needs in office support, including Admin, Facilities, MIS, Legal, Shared services and other miscellaneous roles.

Career Development
As one of our professionals, you will enjoy opportunities like these as well as a chance for international career growth, extensive training, job rotation for exposure to multiple functions, opportunities for higher education like MBA or MTech, and more.

Community Involvement
We're looking for more than just rank-and-file employeeswe're looking for leaders like you who can help create and grow value in our business and in our community. For example, we've conducted a community needs analysis for five villages near Phaltan, which is the location of our new Cummins Megasite. The survey will help us identify the needs of the community better and help us identify suitable projects. We've also collaborated with the Cummins Engine Research Facility at IIT Bombay and READ Foundation for a significant initiative called "Ujjwal Bharat" aimed at developing a sustainable and replicable electrification model for remote villages.

In accrual accounting, revenue is recorded when earned, and expenses recorded when incurred. A customers obligation to pay for goods and services provided is called accounts receivable. From the firms point of view, accounts receivable are assets. When a firm receives goods or services from another business before payment, the firm incurs a liability called accounts payable.

Tom Linebarger
Chairman and CEO
On January 1, 2012, Tom became the sixth Chief Executive Officer of Cummins. He is assuming leadership at a critical juncture, with the company facing outstanding growth opportunities in the midst of changing markets and intense competition. Tom has described the next decade as one of accelerated growth. His first experience at Cummins came in 1991 as a summer intern, when he insisted on working at one of the Company's manufacturing plants. That decision to get first-hand operations experience was consistent with Tom's desire to work for a company that made "real" products. "My definition of 'real products, he jokes, is that it hurts if you drop them on your foot." Tom had very specific thoughts about his career when he joined Cummins full time in 1994, after completing his graduate work in business and engineering at Stanford and working several years in the financial services industry. "By all measures, I had a terrific job at Prudential," Tom says. "I was paid well for my age, travelled extensively and learned a lot about business and finance. But I was not finding the kind of satisfaction at work that I wanted. I wanted to build a company, lead a team and develop and execute a business plan not finance other people who were doing these things." Cummins met Tom's criteria for the right place to work. In addition to its focus on tangible products, Cummins was a global company with significant growth prospects outside the United States. Perhaps most important to Tom, Cummins had "heart." "It was important to me that the company demonstrated that it cared about its employees and the community," Tom

says. "I read two or three passages from (former Cummins Chairman) Irwin Miller before I decided to join the company, and that sealed the deal. His remarks were powerful enough to influence me to join Cummins and they are inspirational to me now as a leader." Tom's career at Cummins is a testament to the breadth of opportunities that are possible for motivated, self-directed individuals who want to be challenged and who embrace lifelong learning. After starting as assistant to a vice president in the Company's Engine Business in 1994, Tom quickly moved through the ranks holding engineering, operations, finance and general management roles before becoming President and Chief Operating Officer in 2008. Along the way, Tom has run the Company's turbocharger and power generations businesses and spent three years as Chief Financial Officer, helping guide Cummins through one of the most challenging times in its history. "I am a person who does not like limits on what I can do or achieve," Tom notes. "At Cummins our jobs are broadly defined and if you have a passion for an area outside your responsibility, you can often find ways to participate in that work. I find that type of environment incredibly motivating." Tom remains as excited as ever about his career at Cummins and the prospects for the Company's future. He also thinks Cummins has a lot to offer the right job candidates. "Given our global footprint and range of businesses, Cummins is a terrific place to work for people from a wide variety of backgrounds and wide range of interests," says Tom, who adds that those employees most willing to take control of their careers rather than wait to be told what their next assignment is going to be, generally fare the best at Cummins. "But it's not the right place for everyone. To be successful here, you need to be committed to lifelong learning, need to be able to communicate openly and effectively across all levels of the organization and you need to share the Company's values." Those valuesintegrity innovation, delivering superior results, corporate responsibility, diversity and global involvementarent just words on a 3 X 5 index card," Tom says. "We embrace these values in every respect of our business and interactions." Back to top.

Pamela Carter
President Distribution Business
By the time Pamela Carter joined Cummins in 1997, she already had blazed a career trail that many would envy She was first African American woman to hold the position of state Attorney General when she was elected to that post in Indiana in 1993, and left a thriving law practice for Cummins where she was immediately thrown into the middle of a contentious legal matter involving the Environmental Protection Agency and the Department of Justice. Pamela quickly made her mark at Cummins by helping to guide the Company through a difficult period and was rewarded with a leadership position within one of Cummins' business units. "I knew when I joined Cummins, I wanted to run a business. International trade and international business has always been my ultimate goal. I knew other leaders who had recently joined Cummins and who loved it, and that stuck with me." Over the past decade, Pamela has led Cummins businesses to strong growth first as a member of the Cummins Filtration leadership team and in her current role as President of the Company's global Distribution business, which sells and services Cummins products in more than 190 countries and territories. The development of Cummins' Distribution business has been particularly gratifying for Pamela, who has helped lead a change in culture and approach to the Company's most global business. Today, Cummins owns a stake in 85 percent of its distributors around the world and is well on its way to creating a cohesive, integrated sales and service organization that often is the Company's first venture into emerging markets. "We have now created a business that incorporates distributors and branches, and that is beginning to look much like a business with manufacturing, engineering, sales and marketing, logistics and inventory planning," Pamela notes. In addition to providing challenging career opportunities, Cummins is a place that allows community-minded individuals such as Pamela to pursue their passion for improving the world around them. In fact, the Company's commitment to corporate responsibility was one of the attractions for Pamela when she joined Cummins and she remains active in the Company's community work.

For those considering a career at Cummins, Pamela says it is imperative that they share the Company's core values such as integrity, innovation, diversity, commitment to delivering superior results and global involvement. She also calls Cummins a "relationship company" and stresses the need for strong interpersonal skills. For those who fit the bill, the rewards of working for Cummins can be significant. "Cummins seeks the best people to fill roles globally," Pamela says. "Cummins offers great opportunities to meet, work and live among people of widely diverse backgrounds and cultures. One can have a great deal of fun, adventure and excitement working for Cummins." Back to top.

Ignacio L. Garcia
President Corporate Manufacturing & Procurement Officer
Cummins believes that in order to compete successfully in the global marketplace, it must be able to attract and retain the best talent from around the world. Ignacio's career at Cummins is a testament to the power of that philosophy. Ignacio, a native of Mexico, joined Cummins nearly 30 years ago as a quality engineer in our San Luis Potosi, Mexico, facility where he quickly made a name for himself. Over the next decade, Ignacio also served as a liaison between the Company's operations in Mexico and the corporate offices in Indiana, and led our marketing and sales work in Mexico before becoming Plant Manager in San Luis Potosi. From there, Ignacio moved to one of Cummins' flagship engine manufacturing plants in the United States. As a manufacturing leader for Cummins in the important North American heavy-duty truck engine market, Ignacio helped oversee a transition of production from one Cummins location to another, which was instrumental in the successful restructuring of the business early last decade. In order to expand his knowledge in the business, he decided to lead the Purchasing organization for the Engine Business. That work served as a springboard for Ignacio to develop and structure the Corporate Purchasing Function, which now he leads.

Later in 2008, Ignacio was named the global manufacturing and purchasing leader for Cummins. Like many leaders at Cummins, Ignacio appreciates the breadth of the opportunities Cummins creates for motivated employees. "You need to have superior performance and dedication to succeed, but there is flexibility at Cummins that allows people to experiment with different areas of interest and expertise," Ignacio says. "Learning is always available to you if you want to take advantage of it." Ignacio added that Cummins offers an "environment of inclusion" that is appealing to him, and said the Company offers good opportunities for those employees whose "personal values are aligned the with the Company's corporate mission and values." Back to top.

Marya Rose
VP General Counsel and Corporate Secretary
Marya joined Cummins 13 years ago after a distinguished career in Indiana state government, and has served as the Company's top legal executive and Corporate Secretary since 2001. When Marya made the decision to join the private sector, she was looking for a company that offered a collaborative work environment where employees were encouraged to ask questions and stretch themselves professionally. She found that at Cummins, first in her role as a Corporate Counsel, and now in her current position. Marya credits her success to Cummins to "great bosses who pushed me hard to take on leadership roles that I may not have been quite ready for" and who gave her "open and direct feedback that has made me a better leader." As a senior leader, Marya works to provide the same type of direction to members of her organization, who strive to work as a single team around the world, in keeping with the Company's "One Cummins" philosophy. "My job is to remove barriers and help guide our highly skilled attorneys so they can effectively serve the Company's interests everywhere we operate," Marya says. "It's an incredibly diverse and rewarding place to work. I never thought when I joined a manufacturing company in Southern Indiana that I would see so much of the world and work with so many different types of people on such a variety of issues."

Back to top.

Theodore (Tim) M. Solso

Former Chairman and CEO
On December 31, 2011 Tim Solso retired as Chairman and CEO after a remarkable 40-year at Cummins. Tim's commitment to leadership and community is as strong as ever. As the Company's top executive, Tim said that selecting and developing capable leaders to take the Company into the future was his most important job and he feels fortunate to have had some outstanding role models. "Cummins has been a great place to work for me, and my success is clearly a function of the support of my leaders and peers," Tim says. "People took risks on giving me assignments early in my career that took my breath away." Tim Solso joined Cummins after graduating from the Harvard Business School, largely because of a chance to work for a strong leader and the Company's commitment to both making great products and building strong communities. Tim began his career as the Assistant to the Vice President of Personnel. He quickly was given the opportunity to grow into larger roles, including international assignments in Europe and Brazil, which gave him an appreciation for the global potential of Cummins that is being realized today. He also found himself working alongside a diverse group of colleagues who were "aligned with the Company's goals and were willing to work as a team to meet and exceed expectations." Of his many accomplishments over the past four decades, Tim is most proud of the Company's financial success after it emerged from one of its lowest periods from 2001 to 2003. The Company rebounded from a deep recession and weakness in key markets by restructuring its business and making a significant commitment to quality and cost control through the introduction of Six Sigma. As a result, the Company enjoyed record sales and profits from 2004-2011 and is well on its way to even stronger performance today as the global economy recovers from the recession of 2008 and 2009. Most importantly to Tim, Cummins did it the right way: By staying true to its values. "I am very proud of the fact that we have achieved record financial results over the past decade, through some difficult times, and have never lost sight of the importance of values such as diversity, corporate responsibility, strong

governance and ethical behavior," Tim says. "We like to say that doing the right thing is not optional at Cummins, and our employees prove that every day." Tim says that Cummins offers potential employees the opportunity to grow and develop to their full potential in a challenging, global and dynamic business environment. "People who work here gain a sense of accomplishment and feel that what they do is important and makes a real difference, says Tim who adds this simple advice to potential employees at Cummins or anywhere else: "Having a good boss and challenging work are the two most important factors in having a fulfilling career. Back to top.

Investment Valuation Ratios Face Value Dividend Per Share Operating Profit Per Share (Rs) Net Operating Profit Per Share (Rs) Free Reserves Per Share (Rs) 2.00 15.00 36.68 202.42 89.19 2.00 12.00 26.96 143.99 76.80 2.00 9.00 25.32 168.00 68.40 2.00 4.60 16.64 119.85 53.71

15

94

44

Bonus in Equity Capital Profitability Ratios Operating Profit Margin(%) Profit Before Interest And Tax Margin(%) Gross Profit Margin(%) Cash Profit Margin(%) Adjusted Cash Margin(%) Net Profit Margin(%) Adjusted Net Profit Margin(%) Return On Capital Employed(%) Return On Net Worth(%) Adjusted Return on Net Worth(%) Return on Assets Excluding Revaluations Return on Assets Including Revaluations Return on Long Term Funds(%) Liquidity And Solvency Ratios Current Ratio Quick Ratio Debt Equity Ratio Long Term Debt Equity Ratio Debt Coverage Ratios Interest Cover Total Debt to Owners Fund Financial Charges Coverage Ratio Financial Charges Coverage Ratio Post Tax Management Efficiency Ratios Inventory Turnover Ratio Debtors Turnover Ratio Investments Turnover Ratio Fixed Assets Turnover Ratio Total Assets Turnover Ratio Asset Turnover Ratio

96.21

96.21

96.21

96.21

96

18.12 16.74 17.20 15.45 15.45 14.34 14.34 43.91 32.71 33.22 91.23 91.23 44.36

18.72 16.78 17.46 16.38 16.38 14.96 14.96 39.02 28.43 28.82 78.84 78.84 39.23

15.07 13.27 13.70 12.84 12.84 12.63 12.63 39.74 31.09 28.36 70.44 70.44 40.35

13.88 12.09 12.49 11.87 11.87 11.45 11.45 33.00 25.43 23.36 55.74 55.74 33.85

16

14

18

14

13

12

11

35

26

24

46

46

35

1.56 1.08 0.01 --

1.58 1.05 0.01 --

1.80 1.25 0.02 --

1.54 1.14 0.03 --

422.10 0.01 441.40 331.63

298.67 0.01 316.27 235.04

215.79 0.02 233.26 184.75

560.73 0.03 610.18 471.60

236

260

196

8.45 6.46 8.45 5.02 2.23 5.02

7.70 4.73 7.70 4.03 1.85 4.03

8.12 5.40 8.12 5.10 2.40 5.10

8.71 4.90 8.71 4.05 2.15 4.05

12

Average Raw Material Holding Average Finished Goods Held Number of Days In Working Capital Profit & Loss Account Ratios Material Cost Composition Imported Composition of Raw Materials Consumed

46.64 11.15 59.10

52.06 10.84 63.52

47.59 7.76 76.58

52.59 2.27 67.59

54

89

67.10 22.52

65.84 22.10

69.68 28.25

70.40 28.74

68

30

Selling Distribution Cost Composition Expenses as Composition of Total Sales Cash Flow Indicator Ratios Dividend Payout Ratio Net Profit Dividend Payout Ratio Cash Profit Earning Retention Ratio Cash Earning Retention Ratio AdjustedCash Flow Times

0.87 27.35

1.13 17.80

0.90 40.35

0.83 31.27

33

58.49 55.08 42.40 45.71 0.03 Mar '11

62.52 57.82 38.32 42.90 0.02 Mar '10 22.42 78.84

48.46 43.85 46.87 52.36 0.05 Mar '09 21.90 70.44

37.96 33.97 58.69 63.37 0.10 Mar '08 14.18 55.74

37

33

60

64

0 Mar

Earnings Per Share Book Value

29.85 91.23

12

46

Accounts Receivable
When a business extends credit to its customers, it records a revenue transaction at the time it provides its customer with goods or services. The transaction results in a revenue account increase and an increase in an asset account. Since no cash is received, the asset account that is increased is Accounts Receivable. Example. When Joint Ventures made its December delivery the Columbian Growers Co-op did not pay the balance owed until January. When the delivery was completed the Co-op had an obligation to pay Joint Ventures for its services. Joint Ventures completed the $50,000 delivery on December 20. Recall that the Co-op had already paid $5,000 on the delivery, so on December 20 the following journal entry would be made:

Accounts Receivable is an asset account. Notice that no cash account was involved in the transaction, because no cash changed hands. An asset account was increased and equity (revenue) was increased. If on January 5 the Co-op paid the $45,000 owed, the transaction would be recorded in this way:

Notice that no revenue account was affected by the January payment. This is because the revenue was recorded in December 2004, when Joint Ventures actually earned it. In January, all that happened was that one asset account, Cash, increased, while another asset account, Accounts Receivable, decreased.

Accounts Payable
Just as a business extends credit to its customers, other firms may extend credit to it. When a business receives goods or services but does not pay immediately, it incurs a liability called accounts payable. Using an accrual basis of accounting, a business records the purchase of goods or services in the period when they are used, not necessarily when cash is paid. Example. Say that Joint Ventures was granted credit by an office supply store to purchase $600 of office supplies at the end of December 2004. Joint Ventures received and used the office supplies in that month. Joint Ventures actually paid for the supplies in January 2005. The entry at the date of purchase is:

Office Supplies, an expense account, has increased while a liability account, Accounts Payable, has also increased. Remember, when an expense is incurred, equity decreases. What actually happens is that a liability account increases and an equity account decreases, so the fundamental accounting equation is maintained. When Joint Ventures pays cash for what it owes in January 2005, the following entry is made:

In this transaction a decrease in an asset (Cash), is offset by a decrease in a liability (Accounts Payable). No expense is recognized in 2005 because the supplies were used in

2004. The net effect of these two transactions is that Joint Ventures recognized the expense when it used the supplies, rather than when it actually paid for them.

Subsidiary Ledgers
If a business only has credit sales (i.e., it never receives cash when the sale is made), all cash collections from customers can be deemed to be credits to Accounts Receivable. Conversely, if a business has no credit sales (i.e., it never extends credit and receives cash whenever a sale is made), all cash received from customers can be credited to a revenue account. A good number of businesses fall between these extremes. Sometimes they extend credit and sometimes they receive cash immediately. To avoid accounting confusion and accurately track accounts receivable, a business that extends credit to customers must maintain a special set of accounting records called subsidiary ledgers. An accounts receivable subsidiary ledger consists of the revenue and payment history of each customer to which a business extends credit. Example. Assume that the Columbian Growers Co-op contracts with Joint Ventures for three deliveries and makes two payments in 2005. The accounts receivable subsidiary ledger on Joint Ventures would look like this:

In a manual accounting system, a business like Joint Ventures has to record all deliveries and payments twice: once in the general journal, and once again in the subsidiary ledger. Because two postings are required for each delivery and payment, transcription errors may cause the ending balance of the accounts receivable to disagree with the cumulative ending balances in the subsidiary ledgers. Finding such discrepancies can be a time consuming and expensive process. When using computerized accounting software, all payments and deliveries are posted simultaneously to the subsidiary ledger and the general ledger accounts receivable account. In fact, in a computerized software system, even a cash sale is recorded in the general ledger and subsidiary ledger as if it were a credit transaction. In this case, the service or product delivery date is the same as the payment date.