Mentorboxx

Internship Certificate
Submitted in partial fulfillment of the requirements for the award of
degree of
MBA (MARKETING AND IT)
Submitted to
Indian Institiute of Information Technology Allahabad

From o1/o6/2022 to 15/07/2022

SUBMITTEDBY

Name of Student: Vishesh Pandey

Registration Number: IMB2021047
Signature of Student:

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 Annexure-II: Student Declaration

To whom so ever it may concern

I, Krishank Shukla, IMB2021005 hereby declare that the work done by me in “Nirvana
Solutions” from 01/06/2022 to 15/07/2022, is a record of original work for the partial
fulfillment of the requirements for the award of the degree, MBA.

Name of the Student (Registration Number): Krishank Shukla IMB2021005

Signature of the student: Krishank Shukla

2 |P a g e
 PREFACE

Being an MBA student at Indian Institute of Information Technology Allahabad has

been a great experience and I have had ample chances to improve my skills and
knowledge so that I can grab better opportunities the corporate world has to offer.

One such opportunity was a full-term internship in Finance department at Nirvana

Solutions. In a chance to portray the learning of this ongoing internship.

In this time of quick evolving world, bookish knowledge isn't adequate to go to

development and flawlessness for use of hypothesis into training. The unique
economy, political and environment ,in which we live consistently place interest
onus to change, improve and learn more to contend and become successful in
corporate world. Along these lines, having hand-on experience is necessary.

3 |P a g e
 ACKNOWLEDGEMENT

The internship opportunity I have with Nirvana Solutions is a great chance for learning and
professional development. Therefore, I consider myself as a very lucky individual as I’m provided
withanopportunitytobeapartofit.Iamalsogratefulforhavingachancetomeetsomanywonderful people
and professionals. First of all, I would like to take this opportunity to thank the Indian Institute of
Information Technology, Allahabad forgiving me approval to do this internship along with my MBA
degree. Doing this job otherwise would have been painstaking endeavor, for lack of staunch and
sincere support of the IIIT Allahabad. I perceive as this opportunity as a big miles to make my career
development. I will strive to use gained skills and knowledge in the best possible way, and I will
continue to work on my improvement, to attain desired career objectives. Hope to continue
cooperation with all of you in the future.

Krishank Shukla
DATE:`15/07/2022

4 |P a g e
Sr.No. PARTICULARS PAGE NO.

1. CHAPTER1
INTRODUCTIONOFTHE
PROJECTUNDERTAKEN
8-11
 Objectives of the work undertaken
 Scope of the Work
 Importance and Applicability
 Role and profile

2. CHAPTER2
INTRODUCTIONOFCOMPANY
 Vision And Mission
 Services 11-19
 Products
 Industries Served
 Company Members
 Competitors
3. CHAPTER3
BRIEFDESCRIPTIONOFWORK
 Position of Internship and roles 20-30
 Activities/equipment handled
 Challenges faced and how those were tackled
 Learning outcomes

4. CHAPTER4
CONCLUSION
32

5. CHAPTER5
REFRENCES 33

5
 Objective of work:

o The aim objective of the job is to generate reports for the clients.
o To fulfill the requirements of the clients.

SCOPE:

o As a financial analyst intern, I am dealing with lots of things ,generating reports

for the clients it can be position report holdings report, profit and loss report. A
brief analysis of financial statements and accounting reports are analyzed by us.
o We analyze financial statement like income statement ,balance sheet, profitand
loss.
o As I am supposed to generate reports for the clients, we usually analyze the
portfolio analysis report, holding reports.

6
7
8
  Role and Profile:
I’m working as a Financial Data Analyst intern where my job is to generate reports
for the clients. As Nirvana provides various financial service to hedge funds and
prime broker where clients use Nirvana OMS for trading purpose and some of the
clients ask for only reports so here my role come into picture, we provide various
types of reports like, holding reports, Portfolio Analysis report, Profit and loss
reports etc. I generate reports for them. In the reports, we mention their position and
how much profit and loss they are having and their long and short position and
many more.

INTRODUCTION OF THE
COMPANY

Nirvana is a financial technology and service provider that provides Asset

Managers, Asset Owners, and Service Providers with integrated, multi-asset class
workflow solutions.
Goal is to make the investment process as simple as possible.
Hedge Funds, Asset Managers, Family Offices, Prime Brokers, and Fund
Administrators can all benefit from our offering, which seamlessly blends front,
middle, and back-office solutions.

Nirvana clients can unify fragmented data across various counter parties, accounts, and asset
classes in real-time, all from a single, simple interface. Our service includes a middle and back-
office component where we collaborate with our clients to manage these activities on their
behalf. Asset Managers and Asset Owners can manage complicated portfolios from a single
view with customized dashboards and integrated compliance, allowing for confident decision
making. Nirvana can adapt data output and analytics to meet your needs, whether you're a
Portfolio Manager, Chief Financial Officer, or Chief Compliance Officer. Our solutions are
offered in the cloud via a SaaS model and are built in a modular architecture, allowing clients to
purchase only the features they require. As a consequence, you'll get a seamless solution that
works with your existing infrastructureandsavesyouupto50%ontotalcostswhencomparedtoin-
9
house or rival solutions. At the heart of all we do is addressing our clients' complicated and
changing demands. We assign a professional relationship manager to each of our clients and
provide high-touch assistance and training. Our "customers come first" concept provides an
unrivalled support model.

10
 Integrated Solution

Our Guiding Principles Our core beliefs define who we are and what we believe in
at Nirvana, and we'd like to share them with you:

Our Customers Always Come First - Our clients are at the center of everything we
do, and they are the most important people in our lives when we are at work. We
see our customers as partners and take along-term approach to establishing a
relationship with them.We believe in listening to and understanding our clients'
problems before recommending the finest solutions. Our clients are our most ardent
supporters, and we are dedicated to providing them with the best service possible.
Our success is based on their success. Create excellent goods that solve real
problems – We're obsessed with making great products that solve real-world
problems. We work with our clients to understand and predict their present and
future needs. We combine this expertise with cutting-edge technology to provide
clear, straightforward solutions. People want to utilize technology rather than learn
how to use it, thus our goal is to obscure the complexity of a sophisticated solution.
We don't believe in "tear and replace," and instead work with our clients' existing
technical infrastructure. Our solutions are available in a modular format, allowing
customers to purchase only what they require. Our people are our best assets – Our
people are the key to our success. We are one of the few private companies in our
space with a generous ESOP program. Many of our employees are owners of the
Company and have a personal interest in its success. We are one team with one
mission: build a great Company.

These values are at the heart of who we are, and our logo reflects this idea, with
three interconnected circles representing our Core Values. On the road to success,
one is reliant on the other, operating in perfect harmony."Nirvana"refers to a
journey in

11
which we seek to be better versions of ourselves. It's a journey with no end in sight,
but with the goal of reaching ongoing perfection.

Integrated Solution

Nirvana's integrated cloud-based solution provides a complete, scalable, and

adaptable workflow solution for all sorts of Investment Managers. Our product will
match your demands at an affordable price point, whether you are a multi-strategy,
multi-asset class hedge fund, a traditional asset manager, or a private equity firm.
You can rebalance, trade, and allocate across numerous accounts funds at several
prime brokers or custodians with our system. Our portfolio accounting and
reporting system is connected with a powerful general ledger, allowing you to
simply maintain a true IBOR across all of your accounts in a single, centralized
solution. In addition, we oversee all back-office processes, such as data aggregation
across different counter-parties, securities master management, dividend and
corporate action management, and reconciliation. The result is a single integrated
solution delivered at one of the lowest total cost of ownership in the industry.

Portfolio Management

Portfolio Management from Nirvana consolidates holdings in real-time across

various accounts, counterparties, asset types, and currencies in a single, simple
interface. In a simple, customizable interface, users may see delta and beta adjusted
exposures, PNL, and other critical action able matrices. Portfolio managers can
group data in ways that meet their needs using configurable dashboards and drag-
and-drop grouping features. Accounts, funds, sectors, risk countries, and any other
customized attribute required by the business can be used to organize data.
Portfolio Management is strongly connected with other major modules, providing a
unified user experience through a single interface.

COMPANY MEMBERS

Our highly experienced and award-winning team have been recognized for their
committment to developing cutting edge technology and delivering solutions to the
industry's most complex operational needs.

Nirvana's Founder and Chief Executive Officer is Shams .Hebegan his career in
Asia, working in Investment Banking/Sales & Trading in Singapore and Tokyo. In
1990, he came to New York to earn an MBA at New York University's Stern
School of Business. Shamsearnedan MBA from New York University with a
double major in Quantitative Finance and Economics. He started his career as a
Derivative and Structured Product specialist with Morgan Stanley after college,
working in New York, San Francisco, Hong Kong, and Singapore. Shams spotted
an opportunity in Fintech after a successful ten years at Morgan and founded
Advanced Financial Applications (AFA) and its broker/dealer subsidiary EGS.
Shams was the product vision aryat AFA ,and AFA was one of the first firms to
develop a web-based Order Management Solution (OMS) for Alternatives / Hedge
Funds under a SaaS format. He noticed a market need for an integrated solution
while at AFA and founded Nirvana to solve it. Shams is involved in all elements of
Nirvana's operations and continues to lead the company's strategic business and
product strategy. He has led the company through multiples successful funds raises
and product launches, bringing it to where it is now: a successful, lucrative, and
growing corporation. Shams has been an entrepreneur for over 20 years and has a
great track record in the financial technology industry. He has ad deep
understanding of the Asset Management Industry And a passion for building great

product.
14
15
16
 Portfolio Accounting and Reporting(IBOR)

Nirvana's portfolio accounting and integrated General Ledger programmer delivers

full portfolio accounting and performance reporting to investment managers,
allowing for an integrated Investment Book of Records (IBOR). The cloud-based
TOUCH platform delivers reports built on top of a scalable data warehouse. This
gives consumers a customizable reporting interface with customization options
right at their fingertips. The cloud-based application works on any mobile device
and is platform agnostic.

Risk Management

Clients may consolidate all positions, transactions, accounts, asset classes, cash, and
currencies in a single real-time customized dashboard using Nirvana's Risk
Management module. For all holdings, the risk engine estimates implied volatility
and delta adjusted exposures in real time. Furthermore, exposures are used to create
allETFand"Delta1"products ,allowing the risk manager to accurately monitor long
and short risk. The result can be viewed as a numerical value or as a graphical
representation. Clients can also do advanced analytics, such as shock analyses, in
which various parameters such as volatility and underlying price are simulated to
determine the impact on PNL and exposures. For the calculation of VaR and other
advanced Stress Testing needs, Nirvana has worked with third-party providers.
Investment Managers

Nirvana's integrated solution provides a complete, scalable, and adaptable workflow

solution for all sorts of investment managers. Our product will match your demands
at an accessible price point, whether you are a multi-strategy, multi-asset class
Hedge Fund, an Asset Manager, or a Private Equity Fund. Our solutions are
available in a modular format, allowing you to purchase only what you require
without having to replace an existing technology infrastructure.

You can rebalance, trade, and allocate across many accounts or funds at several
prime brokers or custodians with our service. Our portfolio accounting and
reporting system is connected with a powerful general ledger, allowing you to
simply maintain a true IBOR across all of your accounts in a single, centralized
solution.

Prime Brokers

Our be spoke service will help you scale your business, minimize time to market,
and provide you with a solution that suits your needs at an accessible price point,
whether you are a new or experienced prime broker. Prime brokers face numerous
issues in today's environment, including client reporting, risk management,
compliance, and
clientconnectivitymanagement.Theserequirementsmightdriveupcostsandmake it
more difficult to achieve profitability.

Prime brokers may provide institutional-quality reporting and analytics to their

clients via a scalable, turn-key web-delivered platform with our tailored solution.
Client transactions, exposures, and PNLs can be monitored and alerted in real time
usingourriskaggregationandportfoliomarginingcapabilitiesacrossdifferentasset
classes and currencies. Our offering can be licensed in a whitelabeled model where
weserveasyourbackendandinfrastructurep1 a8r t n e r ensuringyoursuccess.
 Back Office Solutions

Clients canuse our middle and back-office outsourcing as a stand-alone,technology-

neutral solution .Data aggregation, security master management ,corporate action
and dividend management, reconciliation, break resolution, and other customized
services are all included in this service. Clients can license and configure a solution
set that meets their needs, with or without replacing existing systems, thanks to our
cloud-based, modular architecture. When compared to in-house solutions or rivals'
offerings, clients that use this service should anticipate to save at least 50%. Clients
who use our premium assistance model get 24/7access to highly trained individuals
that can help them with their inquiries and difficulties. As a result, an end-to-end
solution is available at one of the industry's lowest total cost of ownership.

Front,middle,andback-officeworkflowsareallseamlesslyintegratedandsimplified
with our solution. Nirvana allows clients to combine fragmented data in real time
acrossnumerouscounterparties,accounts,andassetclasses.Wecollaboratewithyou to
manage these activities as part of our solution, which includes middle and back-
office services. You can manage complex portfolios from a single view with
customized dashboards and integrated compliance, enabling for confident decision-
making. Our beautiful mobile application offers interactive drill-down analytics,
allowing you to access yourdataat any timeand fromanywhere. Nirvana can adapt
data output and analytics to meet your needs, whether you're a Portfolio Manager,
Chief Financial Officer, or Chief Compliance Officer.

Our solutions are built on a modular architecture that allows you to purchase only
what you require. These services are offered via a SaaS format, which allows us to
swiftlyandeasilyupgradefunctionality.Thesystemsanddataarehostedinasecure Cloud,
ensuring the safety of your information. As a consequence, you'll have a seamless
solution that works with your existing infrastructure and saves you up to 50% on
total costs when compared to in-house or rival solutions.

Attheheartofallwedoisaddressingourclients'complicatedandchangingdemands.
19
 You will have a dedicated relationship manager who will give you with high-touch
support as a customer. Our "customers come first" concept provides an unrivalled
support model with round-the-clock access to our personnel.

COMPETITORS:

 Clear Structure Financial Tech

 Imagine Software.
 Alpha Desk.
 Origami Energy.
 Hedge Guard
 Schwab Performance Technologies
 FA Solutions
 Adhesion Wealth

20
 BRIEF DESCRIPTION OF WORK

Position of Role

As Financial Data analyst intern my role is to generate reports for the client Score
Priority (SP) which is a reporting cling of Nirvana Solutions, in detail, as clients use
Nirvana OMS (Order management system) to book their trades, where Nirvana also
provides various facilities to clients like Live data, Live portfolio service where
clients can see live data in their portfolio.

Some of the clients only ask for the reports where they want Nirvana to provide them
the reporting facilities, so here my work comes into the picture where we generate
reports for them. We follow the long process to generate reports for them in the
backend. In this process, first we get their trading details from the clients then we
process the data step by step.

 Starting with the cancel-correction of the trades then reconciliation of the

trades.Wegettradefilefromthebrokeranddothecancel-amendmentsforthe trade.
Cancel amendments like in case some cancel the previous trade which has
been booked, so client ask us to cancel that trade. It’s not only about trade it
can be anything like commission, avg price of the trade so we do this
accordingly.

 Inthenextprocessweimportthetradesinoursystemandfetchthemarkprices
forthesamefromlivefeed.Livefeedisasystem thatfetchmarkpriceson the
securities in order to calculate the Unrealized profit and loss.

 After fetching mark price we needed to reconcile reports provided by prime

broker with that of nirvana and in case any break is there we are required to
inform the client i.e., SP.

Purchasingacalloption,sellingacalloption,buyingaputoption,andsellingaput option
are the four basic options positions.

Thebuyerofcalloptionsbetsthatthemarketpriceofanunderlyingassetwill
exceedafixedprice,knownasthestrikeprice,whilethesellerbetsthatitwill not.

The option buyer bets that the market price of the underlying asset will go below
21
the strike price, while the seller bets that it will not.

Thelossesofcallorputoptionbuyersarelimitedtothecostoftheoption(its premium).
Option sellers who aren't hedged face theoretically unlimited losses.

22
TradingCallOptions

Before the option expires, the buyer, or holder, has the opportunity to acquire the
underlying asset, such as a stock, currency, or commodities future contract, at a
predeterminedprice.Theholderofanoption,asthenameimplies,hastherightbut not the
responsibility to purchase the asset at the agreed-upon strike price.

Every option is, in essence, a contract between two parties, or a bet. The buyer of
call options is betting that the open market price of the underlying asset will be
higherthanthestrikeprice—andthatitwillexceedthestrikepricebeforetheoption
expires.Ifso,theoptionbuyercanbuythatassetfromtheoptionselleratthestrike price
and then resell it for a profit.

Acalloptionbuyermustpayanupfrontpricefortherighttomakethetransaction. The
cost, known as a premium, is given up front to the seller, who is betting that the
asset's market price will not be greater than the option price. That premium is the
profit the seller wants in most simple options. It is also the option buyer's risk
exposure, or maximum loss. The premium is calculated as a proportion of the
potential deal size.

TradingputOptions:

Aputoption,ontheotherhand,grantsthebuyertherighttosellanunderlyingasset at a
predetermined price on or before a given date. The buyer of a put option is
effectively shorting the underlying asset in this scenario, betting that its market
price will fall below the option's strike price. If this is the case, they can purchase
the asset at a lower market price and then sell it to the option seller, who is
compelled to purchase it at the higher, agreed-upon strike price.

Again, the put seller, or writer, is on the other side of the trade, betting that the
marketpricewillnotgobelowtheoption'sprice.Theputselleriscompensatedfor making
this wager.

ToOpenvs.to Close

When doing these four fundamental trades, there are a few more phrases to be
awareof.Atraderwhobuysaputorcalloptiontoinitiateanewpositionisreferred to as
"buying to open." Buying to open raises open interest in a particular option, which
might indicate more liquidity and market expectations. When the holder of the
options(i.e.,theoriginalbuyer ofthe option) sellstheir callorputpositionfor
23
 a profit or loss, this is known as "sell to close." It's worth noting that option
positionsalwaysexpireonthecontract'sexpirationdate.In-the-moneyoptionswill be
executed at that point, while out-of-the-money options will expire worthless.
There is no need to sell to close if an options position is held to expiration.

Atradercanalso"selltoopen,"creatingafreshpositioninwhichheorsheisshort a call or
a put. Because put options gain in value as the underlying price falls, a
shortputisactuallyalongpositionintheunderlyingmarket.Theoptionseller(also
knownasthewriter)isexposedtounboundedriskwhensellinganoption "naked"
(i.e.,unhedged).Thisisbecausethepremiumispaidtotheoptionselleratthetime
ofthetrade,butifashortcallpositionisexposedtoarapidlyincreasingunderlying
market, losses can quickly rise. When an option writer says "buy to close," it
signifies the put or call option they sold is being closed out.

 Spreads with options involve simultaneously buying and selling different

options contracts on the same underlying.

 Then, account wise we copy that mark prices and start allocating the trades to
that particular account.

 After allocating the trades to particular account we do the trade reconciliation

inordertomakesurethatwhateverwebookedisitcorrectasperthebrokeror not. If
something is wrong on our end it will make a impact in the reports, so make
sure that our data must be reconciled with the broker data.

 In the next process, we do the closing for the trades. We follow various types
of closing algorithm. Lile FIFO closing, HIFO closing and LIFO closing.

FIFOclosing

 FirstIn,FirstOut(FIFO)isanassetmanagement andvaluationstrategyin which

thefirstassetscreatedoracquiredaresold,used,ordisposedof.Fortaxpurposes,
FIFOassumesthattheassetswiththeo2l 3d e s t expensesareincludedinthecostof
 goods sold in the income statement (COGS). The remaining inventory assets are
matched to the most recently purchased or manufactured assets.

 Theaccountingprincipleoffirstin,firstout(FIFO)statesthatassetspurchasedor
acquired first are disposed of first.

 FIFOassumesthattheremaininginventoryismadeupofthemostrecentlypurchased items.

An alternative to FIFO, LIFO is an accounting method in which assets purchased or

acquired last are disposed of first.

Often, in an inflationary market, lower, older costs are assigned to the cost of goods
sold under the FIFO method, which results in a higher net income than if LIFO were
used.

HIFOclosing:

HIFO(highestin,firstout)isaninventorydistributionandaccountingsysteminwhich
theinventorywiththehighestpurchasecostisusedortakenoutofstockfirst.Thiswill affect
the company's books in such a way that the inventory expense for the cost of goods
sold (COGS) will be the greatest possible for any given period of time, but the ending
inventory will be the lowest possible.

Highest in, first out (HIFO) is a system of inventory accounting in which the most
expensive products are the first to be removed from stock.

Becauseitrealizesthemaximumcostofgoodssold,HIFOinventoryhelpsacompany reduce
its taxable income.

HIFO usage is quite rare and is not recognized by general accounting practices and
guidelines such as GAAP or IFRS.

LIFO CLOSING:

Highest in, first out (HIFO) is a system of inventory accounting in which the most
expensive products are the first to be removed from stock. Because it realizes the
maximum cost of goods sold, HIFO inventory helps a company reduce its taxable
income.HIFOisasomewhatuncommonaccountingpracticethatisnotrecognizedby
generally accepted accounting principles and guidelines such as GAAP or IFRS.

LIFO(lastin,firstout)isasystemofinventory accounting.

Thecostsofthemostrecentproductsacquir2e 4d(orgenerated)areexpensedfirstunder
LIFO is a method of accounting that is exclusively used in the United States and is
governed by Generally Accepted Accounting Principles (GAAP). Other methods to
account for inventory include first in, first out (FIFO) and the average cost method.

UsingLIFOtypicallylowersnetincomebutistaxadvantageouswhenpricesarerising.

We have a method where we set the preference of closing to account wise and close
thetransactionswithonlyoneclickbecausemanuallyclosingamultiplicityofaccounts with
different closing algorithms is challenging.

Closingissimilarinthatitrestoresthebalance.Forexample,ifyoubuy100quantities
andsell20quantitiesthenextday,wecalculatethebalancebyclosingtheaccountand
determining the position in that account.

We've completed the transactions and now need to conduct a position recon to
determine if any gaps exist. Our interests should be in sync with the broker's. We'll
have to check to see if anything has changed. If we discover any gaps in the position
reconciliation,wemustdeterminewhetherthereisanycorporateactionorredemption
rights.Itmaybeanything;wemustidentifythegapsandcomparethemtobrokerdata. In
casewedon’tfindany reason forthebreak we simplesend that break to thebroker
andaskforthereasonofamendmentthatyoumadeinyourpositionfile.Letmeknow
youwhatcanbethereasontogetthebreakinthepositionfile.Varioustypesofbreaks can be
there like corporate action, Redemption rights, deposit and withdrawals in the
accounts.

We also handle matters such as corporate action. We have a variety of corporate

actions, such as ticker changes, where one company changes the name of their
securities. If this occurs, we must also update the ticker of the particular security by
mapping in our system. We defined in the mapping that if we receive an old security
name,itwouldbereplacedwiththenewsecurity. Ifwedon'tdothis,wewon'tbeable to get
any trades in that security. Let me go into corporate action and the many forms of
corporate activities in greater detail.

Because our system is built around general ledgers, the process starts with integrating
transactionsintothesystemandthenmovesontobuildingjournalsinthebackend,
suchas asalesjournal. AGeneral Ledger(GL)isarecordof all past transactions ofa
25
corporationthatisgroupedbyaccountsinaccounting.Alldebitandcredittransactions
affecting them are recorded in the General Ledger (GL) accounts. They also contain
detailedinformationoneachtransaction,suchasthedate,description,and amount,as well
as some descriptive information about the transaction.

Asanexample.Ifyoupurchasesecurities,ajournalwillbecreatedusingthefollowing
format: Equity long investment account dr. to cash account credit.

CorporateAction

Any activity that causes material change in an organization and has an impact on its
stakeholders, such as ordinary and preferred shareholders, as well as bondholders, is
referredtoasacorporateaction.Theseeventsarenormallyapprovedbythecompany's
BoardofDirectors;however,someeventsmaybesubjecttoshareholdervoting.Some
business acts necessitate a response from shareholders.

Mandatory or voluntary corporate actions are both possible. Mandatory corporate

actions are applied to the investments involved automatically, whereas voluntary
corporate actions require an investor reaction. Mandatory corporate activities include
stocksplits,acquisitions,andnamechanges;voluntarycorporateactionsincludetender
offers,optionaldividends,andrightsissues. Acorporateactionisaneventcarriedoutby a
company that materially impacts its stakeholders (e.g. shareholders or creditors).

Common corporate actions include the payment of dividends, stock splits, tender
offers, and mergers and acquisitions.

Corporate actions must often be approved by a company's shareholders and board of

directors.

Corporate actions include stock splits, dividends, mergers and acquisitions, rights
issuesandspin-offs.Allofthesearebigchoicesthatmustbeapprovedbytheboardof directors
and approved by the company's shareholders.

A cash dividend is a typical corporate action that affects the stock price of a
corporation.Acashdividendisadistributionofacompany'searningstoacertainclass
ofshareholdersthatissubjecttoapprovalbytheboardofdirectors.Assumetheboard of
directors of firm ABC approves a $2 cash dividend. Company ABC's stock price
wouldreflectthecorporateactionontheex-dividenddate,andwouldbe$2lowerthan
itspreviousclosingprice. 26
A stock split is another common corporate move that changes the current shares of a
corporation.Inastocksplit,thenumberofoutstandingsharesisincreasedbyacertain
factor,whilethesharepriceisreducedbythesameamount.Netflix Inc.,forexample,
announced in June 2015 that it would undertake a seven-for-one stock split. 2 As a
result, the share price of Netflix fell by a factor of seven, while the number of shares
outstanding increased by a factor of seven. Netflix finished at $702.60 per share on
July 14, 2015, with an adjusted closing price of $100.37.3. 4 Despite the fact that
Netflix's stock price moved dramatically, the split had no effect on the company's
market value.

A corporation that wishes to force up the price of its shares might use a reverse split.
Ashareholderwithtensharesofstockat$1each,forexample,willhaveonlyoneshare
followingareversesplitoftenforone,butthatonesharewillbeworth$10.Areverse split
could indicate that the company's stock has plummeted to the point where its officials
wish to boost the price, or at the very least give the impression that the stock
isstronger.It'spossiblethatthecompanywillhavetoavoidbeingclassifiedasapenny stock.
In some situations, a firm may use a reverse split to evict small shareholders.

Mergers and acquisitions (M&A) are a third type of corporate action that causes
significant changes in businesses. A merger occurs when two or more businesses
combinetoestablishanewentity.Existingshareholdersofmergingcompanieshavea
common stake in the new entity. An acquisition, unlike a merger, is a transaction in
whichonefirm,theacquirer,buysoutanothercompany,thetargetcompany.Thetarget
firmceasestoexistafteranacquisition,buttheacquirertakesoverthetargetcompany's
business and the acquirer's stock continues to trade.

Inordertoformanewindependentcompany,anexistingpublicfirmsellsaportionof its
assets or distributes new shares in a spin-off. Existing shareholders are frequently
offered new shares through a rights issue before they are offered to new investors. A
spin-off could suggest a corporation that is ready to take on a new challenge or is
refocusing its core business's activities.

A rights issue is when a firm offers additional or new shares to current shareholders
alone.Existingshareholdershavetheoptiontobuyorreceivethesesharesbeforethey are
made available to the general public. A stock split is a common way for rights to be
issued, and it can represent a number of things.

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 RedemptionRights:

If we get any Redemptions right, we'll apply them to our system as well. A
redemption right is a characteristic of preferred stock that allows investors to
demandthat theirshares berepurchased afteracertain amount oftimehaspassed. Its
purpose is to protect investors in the event that a firm is not a good acquisition or
IPO candidate.

• The repayment of a fixed-income product, such as a Treasury note, certificate of

deposit, or bond, on or before its maturity date is referred to as redemption in
finance.

• Mutual fund investors can ask their fund manager to redeem all or part of their
shares.

• Redemptions may result in capital gains or losses for the investor; nevertheless,
any capital losses recorded will lower the investor's capital gains taxation.

After position reconciliation we import the journals in our system. These Journals
representstheactivityinthecashasournextprocessistocalculatethecashanddo the
reconciliation for the same.

We match the cash with the broker if we find any breaks then we check and clear
that break. Cash break may be of dividends. In case we get any dividends for
particular securities we put that dividend in those particular securities.

We record all information related to dividends like ex-date, record date, payout
date. Let me explain you more about these terms:

Ex-Date: The ex-date is the date on which a stock begins trading without the
advantage of corporate action, i.e., ex-benefit. For the stocks to be credited to the
demat account on therecordday, theclient must purchaseshares at least two days
before the record date. As a result, the ex-date, or the day on which stock trades
without corporate action, is one day prior to the record date. Until the ex-date, a
stockwilltradewiththebenefitsofthecorporateaction,alsoknownascum-benefit (i.e.,
cum-rights, cum-dividend, etc.).

Assume that a corporate action's record date is Wednesday. The ex-date for this
stockisTuesday,i.e.,onetradingdaybeforetherecorddate.Thesharesshouldbe bought
on or before Monday to be eligible for corporate action benefit. Until
Monday,thestockwilltradewiththeco2r8porateactionbenefitsandthestockwill
trade ex-corporate action from Tuesday. Shares purchased on Tuesday won’t be
eligible for the corporate action benefits.

Record date:The record date is when the company checks its records to identify
theeligibleshareholders foracorporateaction.Shareholdersholdingthesharesin their
demat accounts on the record date are eligible for corporate actions such as
entitlement of rights shares, bonus shares, stock splits, dividends, etc.

Payout-date:

The day on which a declared stock dividend is scheduled to be paid to qualified

investors is known as the payment date, sometimes known as the pay or payable
date. The ex-dividend date can be up to a month later. It's worth noting that the
stock price may drop on the payment day to reflect the dividend payment, even if
it hasn't been credited to investors yet.

The payment date is the day on which a firm distributes dividends to its eligible
shareholders.

The distribution date will usually be a few weeks after the ex-dividend date. The
stockpriceonthepaymentdatemaybemonitoredbyinvestorsandanalyststosee
ifthecashdisbursalhasanegativeinfluenceonthecompany'sperceivedfinancial
soundness.

On the payment day for a stock's dividend, actual checks—or electronic payments
—are sent out to eligible shareholders. Shareholders who owned shares
ontherecorddatewillgetthedividendonthepaymentdate.Theex-dividenddate, often
known as the ex-date, is the first day the stock trades ex-dividend after the
recorddate.1Thedividendmaybepaiduptoonemonthaftertheex-dividenddate has
passed. When the payment duedate arrives, thecorporation will normally pay the
stockholder's broker rather than the shareholder directly. The dividend will
subsequentlybedepositedtotheappropriateshareholder'saccountor,ifspecified,
reinvested.

Onthepaymentdatefordividends,theremaybefluctuationsinacompany'sstock price,
which investors may use as an indicator of how the market values the asset. As
the payment date approaches, those investors who did not qualify for the dividend
may buy or sell shares. As a result, even if a dividend is paid, the stock price may
remain elevated.
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 Steps followed to manage portfolio of Score Priority

Asset class- US equity

Trade flow- import from trade files
Prime brokers- wedbush
Files- transaction files, position file, dividend file, cash file and balance file
Module functionality- Touch

Reporting packages-:
 Holding long/short
 Holding pdf
 P/L daily and monthly
 Realised gain & loss
 Portfolio Analysis
 Monthly transaction report
 Transaction report
 Exposure by Account symbol

Daily Process Step

1- Restart SQL & application
 Look all the sessions and check all application are working properly.
 Take one click backup before doing any process.
 Check all emails and JIRA items related to SP.
 Down release process.
 Restar machine on Monday else restart SQL server daily.
 Chech holidays and delete as per process.
2- Download PB files
 Cash file
 Transaction file
 Dividend file
 Balance file
 Position file
3- File modification
 Trade file
 If we found other that cash journal in mark to market column please check what it is and import
accordingly like cash transfer etc.
 Make sure that there is no error shown in the server.
4- Trade and non-trade import process
 Import trade
 Import cash journal
 Import dividend
5- Mark price process
 Import mark price from Wedbush file
 If any new trade date is imported in backdate, please make sure that mark should be updated for that
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 security from trade date to process date.
6- Trade recon
 Run trade recon with wedbush file after importing from wedbush trade file.
7- Closing methodology
 Run closing FIFO without tick
8- Position Recon process
 Run closing recon before that everything should be in sync there should not be any position break
 Run cash recon after calculating day and cash from cash management.
 Note- if there is any position break that means there must be any corporate action imposed.
9- Batch run process
 Calculate day and cash.
 Get exception if day and cash mismatch.
10- NAV matching
 Match holding market value with PB’s file for every account.
 Match PAR long and short market value with PB’s cash file.
 Match touch reports wedbush file.
11- Reports approval after matching with the date
12- Daily check
 Check Bloomberg code, it should be updated.
13- Checklist
 Approve all reports on touch.
 Run Nirvana Quality Check tool and make sure there is no closing correction.
 Fill checklist.

CHALLENEGFACED

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 This was my first job in a corporation, and it taught me that what we study and what
we actually do are two very different notions.
 Iwasfacedwithascenariowherewehadtomanuallycompletealengthy process.
 TryingoutnewExcel calculationsandformulaswasalwaysa challenge.

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 Learningoutcomes:

 Iamcapable offinishingtheentire procedure.

 I learned a lot while working for the company, such as how to deal with clients and how to follow a
long procedure so that I can complete it on a daily basis.

 I'mquitefamiliarwiththecompany'ssoftwareandhowtooptimizeit.

 Iamcapableofcompletingtheassignment quicklyandeffectively.

 Icanbetterguidesomeonebasedonmyunderstanding,and Icanworkunderduress.

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CONCLUSION

 I had theoreticalunderstandingof the topics,butwhile workingfor the company,I gaineda lotof

practical experience.

 Ilearnedhowtoapplytheoreticalinformationtoreal-worldsituations.

 There are numerous resourcesavailableto helpyou learnmoreabout thesystem, such asNirvana

applications and tools.

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 REFERENCES

https://www.nirvanasolutions.com/

https://www.investopedia.com/terms/l/lifo.asp

https://corporatefinanceinstitute.com/resources/knowledge/strategy/corporate-action/

https://www.investopedia.com/terms/r/reconciliation.asp

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