CHAPTER – I

INTRODUCTION TO THOMAS COOK (INDIA) LIMITED

The name Thomas Cook can refer to two things: the man who revolutionized travel, and the travel
company he founded. Thomas Cook, the person, pioneered the concept of modern tourism in the 19 th
century by organizing the first packaged tours, complete with transportation and accommodation. His
company, Thomas Cook and Son, grew into a global travel giant offering various services. However,
the original Thomas Cook Company collapsed in 2019.

There is, however, an independent Indian travel company called Thomas Cook (India) Limited,
established in 1881. This separate entity continues to operate successfully, providing a wide range of
travel services in India and beyond.
While the original Thomas Cook company did not survive the pandemic, Thomas Cook (India)
Limited adapted to navigate the challenges of COVID – 19.
Major strategies used by Thomas Cook to overcome pandemic were;
• Focusing on domestic tourism: With the international travel restricted, they catered to rise in
domestic travel by offering staycation, workations, and tours to off-the-beaten-path destinations
within India.
• Embracing digitalization: They streamlined booking processes and offered contactless
services to cater to traveller's safety concerns and the shift towards online booking.
• Prioritizing customer safety: They launched programs like “Assured Safe Travel” which
emphasized health and hygiene protocols throughout the travel journey.
• Cost optimization: By implementing automation and focusing on financial management, they
reduced operational costs to weather the financial strain.
These adaptations helped Thomas Cook (India) Limited stay afloat during the pandemic and even
achieve some level of recovery.
Forex services, short for foreign exchange services, represent a critical component of the global
financial ecosystem. The forex market, where these services are predominantly offered, is a vast and
dynamic marketplace where currencies from around the world are traded, making it the largest and
most liquid financial market globally. Forex services play a pivotal role in enabling international trade,
investment, and financial transactions by providing the infrastructure and mechanisms necessary for
the exchange of one currency for another. One of the fundamental aspects of forex services is the
concept of currency pairs. In forex trading, currencies are traded in pairs, with one currency being
exchanged for another. These pairs are classified into three categories: major, minor, and exotic, based
on their liquidity and trading volume. The most traded currency pair is the EUR/USD, representing the
euro against the US dollar. Understanding these pairs is essential for market participants, as they form
the basis for all forex transactions. The participants in the forex market are diverse, ranging from large
financial institutions and central banks to multinational corporations, individual traders, and
speculators. Each group brings its unique objectives and strategies to the market, contributing to its
constant flux and vibrant nature.
Central banks, for instance, may participate to stabilize their domestic currency or influence their
nation's economic conditions, while individual traders often aim to profit from short-term price
movements. Forex services encompass a broad spectrum of financial activities and offerings. These
services include currency exchange, where physical currency notes are exchanged for another
currency, typically utilized for international travel. Additionally, forex services involve spot and
forward transactions, options and futures trading, as well as currency hedging and risk
management solutions for businesses exposed to foreign exchange fluctuations. The intricate and
interconnected nature of these services makes them indispensable in the global economy,
supporting cross-border commerce and investment by providing the means to manage currency
exposure and conduct international financial transactions efficiently. Forex services, also known as
foreign exchange services, serve a multitude of crucial functions in the modern global economy.
When individuals or companies engage in international commerce or travel, they often need to convert
their domestic currency into the currency of the destination country. Forex services provide a platform
for these conversions, ensuring that the exchange rates are fair and transparent. Moreover, forex
services play a pivotal role in risk management. Businesses exposed to fluctuations in currency values,
such as multinational corporations, rely on forex services to hedge their currency risk. Through
derivatives like forward contracts and options, these entities can lock in exchange rates for future
transactions, safeguarding their profit margins and financial stability in the face of currency volatility.
Investors and speculators also heavily utilize forex services to capitalize on currency price movements.
They engage in currency trading, attempting to profit from fluctuations in exchange rates. This
speculative aspect of forex services adds liquidity and depth to the market, contributing to its dynamic
nature. Additionally, governments and central banks employ forex services to manage their foreign
exchange reserves and influence their domestic economies. By buying or selling their own currency in
the forex market, they can stabilize exchange rates, combat inflation, or stimulate exports. In essence,
forex services are the backbone of global finance, supporting international trade, mitigating currency
risk, and providing opportunities for investment and speculation. Their importance extends beyond the
financial sector, impacting the broader economic landscape and influencing exchange rates that, in
turn, affect the prices of goods and services in markets worldwide.
I. FOREX SERVICES: Forex services, short for foreign exchange services, encompass a wide
range of financial activities and transactions related to the global foreign exchange market. The
forex market is the largest and most liquid financial market in the world, where currencies from
different countries are bought, sold, exchanged, and speculated upon. Forex services play a crucial
role in facilitating international trade, investment, and financial transactions.
1.1 Currency Exchange - Forex services involve the exchange of one currency for another. This is
a fundamental function of the forex market and is essential for international trade and travel.
Individuals and businesses use forex services to convert their home currency into the currency of
the country they are traveling to or conducting business with.
 1.2 Spot Exchange Transactions - The most common form of currency exchange in forex
services is the spot transaction. In a spot transaction, two parties agree to exchange currencies at
the current market rate, and the transaction is typically settled within two business days. This type
of transaction is prevalent in everyday international trade and travel.
1.3 Currency Pairs - Currency exchange is quoted in currency pairs, where one currency is the
base currency, and the other is the quote or counter currency. For example, in the EUR/USD
currency pair, the euro is the base currency, and the US dollar is the quote currency. The exchange
rate tells you how much of the quote currency is needed to purchase one unit of the base currency.
1.4 Bid and Ask Prices - In forex services, there are two prices associated with a currency pair:
the bid price and the ask price. The bid price represents the maximum price that a buyer is willing
to pay for a currency pair, while the ask price is the minimum price at which a seller is willing to
sell. The difference between these two prices is known as the spread.
1.5 Currency Exchange Providers - Forex services are offered by various providers, including
banks, currency exchange agencies, online forex brokers, and financial institutions. These
providers serve as intermediaries that connect buyers and sellers in the market and facilitate
currency exchange transactions.
1.6 Role in International Trade - Currency exchange is essential for international trade. It allows
businesses to convert the proceeds from their exports into their domestic currency and vice versa,
enabling cross-border trade to occur efficiently.
Currency exchange is a foundational function of forex services, facilitating the conversion of one
currency into another for a wide range of purposes, from international travel and commerce to
investment and speculation. The forex market is where these exchanges take place, and its continuous
operation and liquidity make it a vital component of the global financial system.
II. CURRENCY TRADING: Forex services also include currency trading, where traders and
investors buy and sell currencies in the hope of profiting from changes in exchange rates. This
speculative aspect of forex services attracts a wide range of participants, from individual retail
traders to large financial institutions. Currency trading is a core activity within the realm of forex
services. It involves the buying and selling of currencies in the foreign exchange market with the
aim of profiting from changes in exchange rates. Currency trading, often referred to as forex
trading or FX trading, is a prominent and highly liquid segment of the financial markets.
2.1 Currency Pairs
1.Currency trading is based on the concept of currency pairs. In a currency pair, one currency is
exchanged for another. There are three main categories of currency pairs:
2.Major Pairs: These involve the most traded and liquid currencies in the world, such as EUR/USD
(euro/US dollar), GBP/USD (British pound/US dollar), and USD/JPY (US dollar/Japanese yen).
3.Minor Pairs: These consist of currencies from smaller economies, excluding the US dollar.
Examples include EUR/GBP (euro/British pound) and AUD/JPY (Australian dollar/Japanese yen).
4.Exotic Pairs: Exotic currency pairs involve one major currency and one from a less developed or
emerging market. These pairs tend to have lower liquidity and higher spreads. Examples include
USD/TRY (US dollar/Turkish lira) and EUR/TRY (euro/Turkish lira).
2.2 Speculation
Currency trading primarily involves speculators seeking to profit from fluctuations in exchange rates.
Traders analyse various factors, including economic data, geopolitical events, interest rates, and market
sentiment, to make informed trading decisions.
2.3 Bid and Ask Price
In currency trading, there are two prices associated with a currency pair: the bid price and the 5 ask
price. The bid price represents the maximum price that a buyer is willing to pay for a currency pair,
while the ask price is the minimum price at which a seller is willing to sell. The difference between
these two prices is known as the spread.
2.4 Market Participants
Currency trading involves a diverse range of participants, including individual retail traders,
institutional investors, banks, hedge funds, and multinational corporations. Retail traders typically
access the forex market through online forex brokers.
2.5 Trading Platforms
Forex trading is facilitated through electronic trading platforms provided by brokers. These platforms
offer real-time price quotes, charting tools, technical analysis indicators, and order execution
capabilities.
2.6 Trading Hours
The forex market operates 24 hours a day, five days a week, due to its global nature and the presence
of major financial centres in different time zones. This continuous trading allows traders to engage at
their convenience.
2.7 Risk Management
Successful currency trading involves effective risk management strategies, including setting stop-loss
orders to limit potential losses and implementing position sizing rules. Currency trading within forex
services offers participants the opportunity to diversify their investment portfolios, speculate on
currency movements, and manage currency risk. However, it is a complex and highly leveraged
market that requires a deep understanding of forex markets, technical and fundamental analysis, and a
disciplined approach to trading
III. HEDGING AND RISK MANAGEMENT
Many businesses and investors use forex services to hedge against currency risk. This involves using
financial instruments like forward contracts and options to protect against adverse movements in
exchange rates. It helps businesses mitigate the impact of currency fluctuations on their profits and
investments. Hedging and risk management are essential components of forex services, particularly for
businesses and investors looking to protect themselves from adverse currency movements and mitigate
potential financial losses.
3.1 Hedging Defined
Hedging is a strategy used to reduce or offset the potential risks and losses associated with adverse
movements in exchange rates. It involves taking an equal and opposite position in the forex market to
the one you hold in your primary business or investment. The idea is to create a balance that can
protect your financial interests.
3.2 Types of hedging instruments
• Forward Contracts: These agreements allow you to lock in a specific exchange rate for a
future date. Forward contracts are often used by businesses to hedge against potential
currency fluctuations in international trade transactions.
• Options Contracts: Forex options provide the holder with the right, but not the obligation, to
buy (call option) or sell (put option) a currency pair at a predetermined exchange rate. Options
provide flexibility and can be used for different hedging strategies.
• Futures Contracts: Similar to forward contracts, futures contracts stipulate a future date and
exchange rate for currency exchange. Futures contracts are standardized and traded on
organized exchanges.
IV. SPECULATIONS
Forex services provide a platform for speculators to profit from short-term price movements in
currency pairs. Traders use various strategies, technical analysis, and fundamental analysis to predict
currency price changes and make trading decisions. Speculation is a significant and inherent aspect of
forex services, particularly in the foreign exchange market (forex or FX market). Forex speculation
involves traders and investors attempting to profit from the anticipated movements in exchange rates
between currency pairs.
4.1 Profit Through Exchange Rate Fluctuations
Speculators in the forex market aim to profit by buying or selling currency pairs with the expectation
that the exchange rate will move in a direction that benefits their position
4.2 Currency Pairs
Forex speculation primarily revolves around currency pairs. Speculators choose a currency pair to
trade based on their analysis of fundamental and technical factors. For instance, a trader may speculate
on the EUR/USD pair, betting that the euro will appreciate relative to the US dollar.
4.3 Short- and Long-Term Positions
• Long Position: A trader takes a long position when they buy a currency pair with the
expectation that its value will rise. They later sell the pair to close the position and realize a
profit if the exchange rate has indeed increased.
• Short Position: Conversely, a trader takes a short position when they sell a currency pair,
anticipating that its value will fall. They buy back the pair to close the position and make a
profit if the exchange rate has declined.
4.4 Leverage
Speculation in the forex market often involves the use of leverage, which allows traders to control
larger positions with a smaller amount of capital. While leverage can amplify profits, it also
increases the potential for significant losses. Risk management is crucial for speculators to protect
their capital.
4.5 Analysis
• Technical Analysis: Analysing historical price charts and using indicators to identify trends,
support and resistance levels, and entry/exit points.
• Fundamental Analysis: Evaluating economic data, interest rates, political events, and other
macroeconomic factors that can impact exchange rates.
• Sentiment Analysis: Gauging market sentiment through news, social media, and other sources
to anticipate market moves.
4.6 Trading Strategies
Speculators employ a wide range of trading strategies, such as day trading (short-term trading), 8
swing trading (medium-term trading), and position trading (long-term trading). They may also use
algorithmic trading systems to execute their strategies automatically.
4.7 Market Liquidity
The forex market is highly liquid, with trillions of dollars traded daily. This liquidity ensures that
speculators can enter and exit positions easily without significantly affecting exchange rate.
4.8 Risks
Forex speculation carries inherent risks, including market volatility, leverage- induced losses, and the
potential for unexpected events that can cause rapid and significant price movements. Speculators
must have a risk management plan in place to protect their capital.
V. INTERNATIONAL TRADE SUPPORT
Forex services are essential for international trade. Importers and exporters use forex services to settle
transactions in different currencies. Forex markets also provide a mechanism for determining fair
exchange rates, which is crucial for pricing goods and services in international trade. International
trade support in the context of forex (foreign exchange) services refers to a range of financial services
and products designed to assist businesses and individuals engaged in international trade transactions.
These services are crucial for mitigating risks, facilitating currency exchange, and optimizing financial
operations in the global marketplace. Here are some key aspects of international trade support in forex
services:
• Currency Exchange Services: Forex service providers offer currency exchange services,
allowing businesses to convert one currency into another. This is essential for international
trade where transactions often involve different currencies.
• Foreign Exchange Rate Information: Providing real-time and historical foreign exchange
rate information is vital for traders to make informed decisions. Forex services often offer
access to exchange rate data and analysis tools.
• Hedging Solutions: Forex services may offer hedging tools such as forward contracts, 9
options, and futures. These instruments help businesses protect themselves against adverse
currency movements, ensuring stable pricing for their goods and services.
• Risk Management: Forex service providers assist in identifying and managing currency
related risks. They offer risk assessment and advisory services to help businesses navigate the
complexities of the forex market.
• Payment and Settlement Services: Facilitating international payments and settlements is a
crucial aspect of international trade support. Forex services can provide secure and efficient
payment solutions, including wire transfers and online payment platforms.
• Trade Finance: Forex services often collaborate with banks and financial institutions to offer
trade finance solutions, such as letters of credit and trade credit insurance, to ensure smooth
trade transactions.
• Market Research and Analysis: Forex service providers may offer market research and
analysis reports, helping traders and businesses stay updated on global economic trends and
their impact on currency markets.
• Compliance and Regulatory Support: International trade involves complex regulatory and
compliance requirements. Forex service providers help clients navigate these regulations to
ensure their transactions are compliant with local and international laws.
• Multi-Currency Accounts: Some forex service providers offer multi-currency accounts that
allow businesses to hold and manage funds in various currencies, simplifying international
transactions and reducing currency conversion costs.
• Customer Support: Access to knowledgeable customer support is essential for clients
engaging in international trade. Forex service providers often offer 24/7 customer support to
assist with inquiries and issues related to forex services.
• Technology and Tools: Forex services may provide trading platforms, mobile apps, and other
technological tools that enable clients to execute forex transactions efficiently and monitor their
international trade activities.
• Education and Training: Many forex service providers offer educational resources and
training programs to help clients understand forex markets, risk management strategies, and
trade finance concepts. 10 International trade support in forex services encompasses a wide
range of financial products and services aimed at facilitating and optimizing international trade
transactions while managing associated risks. These services are essential for businesses and
individuals engaged in global commerce.
VI. CENTRAL BANK OPERATIONS
Central banks use forex services to manage their foreign exchange reserves and implement monetary
policies. They may intervene in the forex market to stabilize their domestic currency or influence their
nation's economic conditions. Central banks play a significant role in forex (foreign exchange)
services and the broader financial markets. Their operations in the forex market are critical for
managing the country's currency, monetary policy, and overall economic stability. Here are some of
the key ways central banks engage in forex services:
• Foreign Exchange Reserves Management: Central banks maintain foreign exchange
reserves, which are held in various foreign currencies and assets. These reserves serve as a
buffer to stabilize their own currency in times of volatility. Central banks actively manage
these reserves, buying and selling foreign currencies to influence exchange rates and support
their currency's value.
• Exchange Rate Interventions: Central banks may intervene in the forex market to influence
exchange rates. They can do this by buying or selling their own currency in large quantities to
stabilize or change its value. For example, if a central bank wants to weaken its currency to
boost exports, it may sell its currency in exchange for foreign currencies.
• Monetary Policy Implementation: Central banks use forex operations to implement their
monetary policies. For example, if a central bank wants to tighten monetary policy, it may sell
its currency in the forex market, reducing the money supply and increasing interest rates.
• Interest Rate Management: Central banks often use forex operations to support their interest
rate policies. By buying or selling foreign currencies, they can influence the supply of their
domestic currency and, consequently, short-term interest rates.
• Currency Pegs and Bands: Some countries maintain fixed exchange rate systems, where their
currency is pegged to a foreign currency, such as the U.S. dollar or the euro. Central banks
closely monitor and adjust their forex reserves to maintain the pegged rate within a specified
band.
• Foreign Exchange Market Regulation: Central banks also have a regulatory role in the forex
market. They establish rules and regulations to ensure the smooth functioning and integrity of
the forex market. This includes oversight of financial institutions engaged in forex trading.
• Currency Stabilization: In times of extreme currency volatility or financial crises, central
banks may step in to stabilize their currency's value. They can use their reserves to support the
currency and restore market confidence.
• Currency Swaps: Central banks may engage in currency swap agreements with other central
banks to provide liquidity in times of stress. These agreements allow central banks to exchange
their currencies temporarily to address short-term liquidity needs.
• Intervention Transparency: Some central banks publish their forex intervention activities to
provide transparency and guidance to market participants. This transparency can help reduce
uncertainty in the forex market.
• Foreign Exchange Reserve Diversification: Central banks may periodically adjust the
composition of their foreign exchange reserves to manage risk. This could involve diversifying
into other currencies or assets to reduce reliance on a single currency.

Overall, central banks' operations in forex services are instrumental in maintaining economic stability,
influencing exchange rates, and implementing monetary policies. Their actions in the forex market can
have far-reaching effects on a country's economy and its interactions with the global financial system.
VII. 24- HOUR MARKET
Forex services are available 24 hours a day, five days a week, due to the global nature of the market.
This continuous availability allows participants to trade at their convenience, regardless of their time
zone. The forex (foreign exchange) market is often referred to as a "24-hour market" because it
operates continuously, five days a week, from Sunday evening in one time zone to Friday evening in
another, due to the global nature of currency trading.

• Global Trading Centers: The forex market is decentralized, with trading centres located in
major financial hubs around the world. These centres include London, New York, Tokyo,
Sydney, Hong Kong, and others. As one trading session ends in one location, another begins
in a different time zone, creating a seamless 24-hour trading cycle.
• Overlapping Trading Hours: There are periods during the trading day when multiple trading
centres are open simultaneously. These overlapping hours typically result in increased trading
activity and liquidity. The most notable overlap occurs between the London and New York
trading sessions.
• Market Liquidity: The continuous nature of the forex market ensures that there is always a
market open somewhere in the world. This leads to relatively high liquidity, making it easier
for traders to enter and exit positions at the prevailing market prices.
• Accessibility: The 24-hour nature of the forex market allows participants from different time
zones to trade at times that are convenient for them. This accessibility appeals to a diverse
range of traders, including individual retail traders, institutional investors, corporations, and
central banks.
• News and Events: Market-moving events, such as economic releases, geopolitical
developments, and central bank announcements, can occur at any time. As a result, traders
must stay informed about global events that could impact currency prices, even outside of
regular business hours.
• Volatility: Currency prices can experience significant fluctuations during the opening hours of
different trading sessions, especially when there is an overlap. Traders often monitor these
periods for potential trading opportunities.
• Weekend Gap Risk: While the forex market is open 24 hours a day during the trading week,
it typically closes on Friday evening and reopens on Sunday evening (in Eastern Time, for
example). During this weekend gap, significant price movements can occur due to weekend
news and events.
• Electronic Trading: The advent of electronic trading platforms has made it easier for traders
to access the forex market at any time. Online brokers and trading platforms provide access to
the market 24/5, allowing traders to execute trades from their computers or mobile devices.
• Global Nature of Trading: The 24-hour forex market reflects the global nature of
international trade and finance. Currency trading is essential for businesses engaged in
crossborder commerce, as well as for investors looking to diversify their portfolios.
• Trading Strategies: Traders often employ different trading strategies based on the time of 13
ay and market conditions. For example, some traders focus on scalping during high volatility
periods, while others prefer swing trading or longer-term positions.
It's important to note that while the forex market operates continuously during the trading week, not
all currency pairs are active. Liquidity and trading volumes can vary depending on the trading session
and currency pair, so traders often consider these factors when making trading decisions. Additionally,
the 24-hour nature of the market means that traders should be aware of the potential for overnight gaps
in prices and manage their risk accordingly.
VIII. LIQUIDITY
The forex market is highly liquid, with a massive trading volume each day. This liquidity ensures that
participants can easily buy or sell currencies without significantly impacting exchange rates.
Liquidity in forex (foreign exchange) service refers to the ease with which a currency pair can be
bought or sold in the market without causing significant price movements. It is a crucial concept in
forex trading because it affects a trader's ability to enter and exit positions, as well as the cost of
executing those trades
IX. HIGH CURRENCY LIQUIDITY PAIRS
Major currency pairs, such as EUR/USD (Euro/US Dollar), USD/JPY (US Dollar/Japanese Yen),
GBP/USD (British Pound/US Dollar), and AUD/USD (Australian Dollar/US Dollar), are known for
their high liquidity. They involve currencies of major economies and enjoy substantial trading
volumes. Traders often prefer these pairs because they offer tight bid-ask spreads and lower
transaction costs.
X. LOW LIQUIDITY CURRENCY PAIRS
Minor or exotic currency pairs, on the other hand, tend to have lower liquidity. These pairs involve
currencies from smaller or emerging market economies. Examples include USD/TRY (US
Dollar/Turkish Lira) or EUR/TRY. Trading in these pairs may result in wider spreads and higher
transaction costs.
XI. TRADING SESSIONS
Liquidity varies throughout the day due to the different trading sessions around the world. The most
liquid periods often occur during the overlap of major trading sessions, such as the London 14 and
New York sessions. These overlapping hours see increased trading activity and tighter spreads.
XII. NEWS AND EVENTS
Major economic releases, geopolitical events, or unexpected news can significantly impact liquidity
in the forex market. Liquidity can dry up rapidly during times of heightened uncertainty or market
turbulence, leading to price gaps and increased spreads.
XIII. BID-ASK SPREAD
The bid-ask spread is a measure of liquidity. A tight spread (the difference between the buying and
selling price) indicates higher liquidity, while a widespread suggests lower liquidity. Traders aim for
narrow spreads to minimize their trading costs.
XIV. SLIPPAGE
In low liquidity conditions, it can be challenging to execute trades at desired prices. This can result in
slippage, where the execution price differs from the expected price due to market conditions. Slippage
is more common in less liquid currency pairs and during volatile periods.
XV. MARKET ORDERS vs. LIMIT ORDERS
Market orders are executed immediately at the current market price, which can be subject to slippage
in low liquidity. Limit orders, on the other hand, are set at specific price levels and are only executed
when the market reaches that price. Limit orders can be useful for managing execution in illiquid
markets. Forex services are a cornerstone of the global financial system, supporting international trade,
investment, and financial activities. They provide a means for individuals, businesses, investors, and
governments to navigate the complexities of international finance and manage currency related risks
and opportunities.
OBJECTIVE OF THE STUDY: ANALYZING THE FINANCIAL RESILIENCE
OF THOMAS COOK (INDIA) LTD. IN THE WAKE OF COVID – 19.

This research project aims to conduct a comprehensive pre- COVID and post-COVID financial
analysis of Thomas Cook (India) Ltd. The primary objective is to assess the company’s financial
resilience in the face of the unprecedented global pandemic. This analysis will provide valuable
insights into the effectiveness of the company’s strategies in weathering the crisis and its current
financial health. Specific areas of investigation will include:
• Revenue and Profitability: Comparing pre-COVID revenue streams from various segments
(domestic vs. international travel, foreign exchange) with post-COIVID figures to understand
the impact of travel restrictions and changing consumer behaviour. Analysing profit margins
and profitability ratios to assess the company’s ability to generate income after the pandemic.
• Cost Structure: Evaluating cost-cutting measures implemented by Thomas Cook (India) Ltd.
During and after COVID-19. This will involve examining changes un operational expenses,
employee costs, and marketing expenditures.
• Debt Management: Assessing the company’s debt levels and debt servicing and capabilities
before and after the pandemic. This will involve analysing debt-to-equity ratios and interest
coverage ratios to determine if the company’s financial leverage has increased or decreased.
• Liquidity: Investigating the company’s cash flow situation pre- and post-COVID. This will
involve analysing current ratios and quick ratios to assess the company’s ability to meet its
shortterm objectives.
The analysis will consider both internal and external factors:
• Internal Factors: This includes examining strategic decisions made by Thomas Cook (India)
Ltd. Such as its focus on domestic tourism and digitalization, to understand their impact on
financial performance.
• External factors: The analysis will consider the broader economic impact of COVID-19 on
the travel and tourism industry in India, along with any government support measures that may
have influenced the company’s financial health.
Expected Outcomes: By analysing these factors, the research aims to provide a clear picture of
Thomas Cook (India) Ltd.’s financial resilience during the COVID –19 crisis. The findings will be
valuable to investors, creditors, and industry stakeholders seeking to understand the company’s future
prospects in the evolving travel landscape.
Additional Considerations:

• The long-term impact of COVID-19 on travel preferences and the industry’s overall recovery
remains to be seen.
• It would be beneficial to compare Thomas Cook (India) Ltd.’s performance with industry
benchmarks to understand their relative resilience and growth.
Important Note:
This analysis is based on publicly available information and might not be exhaustive. A more detailed
analysis would require access to financial statements and industry reports.

NEEDS, SCOPE AND LIMITATIONS ON THE STUDY OF FINANCIAL

ANALYSIS OF THOMAS COOK (INDIA) LTD.
NEEDS:
• Financial Metrics Analysis: Compare key financial metrics such as revenue, profit margins,
operating expenses, and cash flow before and after the onset of the COVID-19 pandemic. Look
for trends and patterns in the data.
• Impact on Revenue Streams: Analyse how different revenue streams (e.g., leisure travel,
corporate travel, foreign exchange services) were affected by the pandemic. Assess any shifts
in consumer behaviour and demand patterns.
• Cost Management strategies: Examine how the company managed its costs during the
pandemic. This could include measures such as reducing overhead expenses, renegotiating
contracts with suppliers, or implementing workforce reductions.
• Adaptation and innovation: Investigate any new products, services, or business models
introduced by Thomas Cook India in response to the pandemic. Assess the effectiveness of
these initiatives in mitigating the impact of COVID-19 on the company’s financial
performance.
• Market Positioning and Competition: Evaluate how Thomas Cook India’s market position
has changed relative to its competitors as a result of the pandemic. Consider factors such as
market share, brand perception, and competitive pricing strategies.
• Government Support and Regulations: Consider the role of government support programs
and regulatory changes in influencing Thomas Cook India’s financial performance during the
pandemic. This could include measures such as financial assistance or travel restrictions.
• Consumer Confidence and sentiment: Assess consumer confidence and sentiment regarding
travel and tourism both before and after the pandemic. Look for indicators such as customer
surveys, online reviews and social media sentiment analysis.
• Long-Term Strategic Implications: Consider the long-term strategic implications of the
pandemic on Thomas Cook India’s business. This could include changes in consumer
behaviour, industry trends and competitive dynamics that may persist beyond the immediate
crisis.
• Risk Management and Contigency Planning: Evaluate the effetctivesness of Thomas Cook
India’s risk management practices and contingency planning in responding to the challenges
posed by the pandemic. Identify any areas for improvement.
• Financial Outlook and Future Propects: Provide an assessment of Thomas Cook India’s
financial outlook and future prospects in light of the pandemic. Consider the factors such as
vaccination rates, economic recovery projections, and industry forecasts.
By examining these areas, researchers can gain a comprehensive understanding of how Thomas Cook
India Limited has navigated the challenges of the COVID-19 pandemic and positioned itself for the
future growth and resilience.

SCOPE:
Studying the pre- and post-COVID financial performance of Thomas Cook India Limited can be a
comprehensive and insightful endeavour.
1. Introduction: This section would provide an overview of Thomas Cook India Ltd., its
history, operations, and its position in the travel and tourism industry before the COVID-19
pandemic.
2. Literature Review: Review existing literature on the impacts of pandemics or crises on the
travel and tourism industry, as well as studies specifically related to the financial performance
of travel companies like Thomas Cook India Ltd.
 3. Methodology: Detail the research methodology, including data collection methods, timeframe
of analysis (pre- and post-COVID), variables considered, and any analytical techniques
employed.
4. Pre-COVID Financial Performance: Analyze TCIL’s financial statements,key financial
ratios, revenue streams, profitability, market share, and other relevant metrics for a period
before the COVID-19 outbreak. This would provide a baseline for understanding the
company’s performance in normal operating conditions.
5. Impact of COVID-19: Assess the specific impacts of the Covid-19 pandemic on TCIL’s
financial performance. This would include disruptions to travel, cancellations, revenuew
losses, cost-cutting measures, government regulations, and any other relevant factors.
6. Post-Covid Recovery Efforts: Examine the strategies implemented by TCIL to navigate the
challenges posted by the pandemic and facilitate recovery. This could include cost-saving
measures, diversification efforts, digital transformation initiatives, and any other strategic
adjustments made in response to the crisis.
7. Financial performance post-COVID: Evaluate TCIL’s financial performance in the
aftermath of the covid-19 pandemic, assess whether the company has been able to rebound,
regain market share, restore profitability, and achieve sustainable growth in the new operating
environment.
8. Comparative analysis: Compare TCIL’s pre and post-covid financial performance to identify
trends, patterns and areas of improvement or concern. Benchmark the company’s performance
against industry peers or relevant market indices to provide context and insights.
9. Challenges and opportunities: Discuss the ongoing challenges facing TCIL in the post covid
landscape, such as evolving consumer preferences, competitive pressures, regulatory changes,
and economic uncertainties. Identify potential opportunities for growth and expansion amidst
these challenges.
10. Conclusion: Summarize the key findings of the study, including the overall impact of
COVID19 on TCIL’s financial performance, the effectiveness of its recovery efforts, and the
outlook for the company going forward.. Provide recommendations for future strategies to
ensure resilience and long-term success in the dynamic travel and tourism industry.
By conducting a comprehensive study following these steps, researchers can gain valuable insights
into the pre and post-covid financial performances of Thomas Cook India Limited and contribute to
the understanding of how travel companies have been impacted by and responded to the
unprecedented challenges of the pandemic.

LIMITATIONS:
Studying the pre- and post-COVID financial performances of Thomas Cook India Limited would
undoubtedly provide valuable insights into the effects of the pandemic on the travel and tourism industry.
However, like any study, there are several potential limitations to consider:
1. Data Availability and Quality: The availability and quality of data for the pre-COVID period
might differ from that of the post-COVID period. This could potentially introduce biases or
inaccuracies into the analysis.
2. Comparability: It may be challenging to make direct comparisons between pre- and post-COVID
financial performances due to various factors such as changes in market conditions, government
regulations, and consumer behaviour.
3. External Factors: Other external factors beyond the control of Thomas Cook India Limited could
have influenced its financial performance during both periods. These could include changes in
exchange rates, geopolitical events, or natural disasters.
4. External Factors: Other external factors beyond the control of Thomas Cook India Limited could
have influenced its financial performance during both periods. These could include changes in
exchange rates, geopolitical events, or natural disasters.
 5. Timeframe: The choice of the timeframe for the study could influence the results. For instance, if
the post-COVID period chosen is too short, it may not capture the full extent of the pandemic's
impact on the company's finances.
6. Industry Trends: Changes in the travel and tourism industry may also affect Thomas Cook India
Limited's financial performance. These broader trends should be considered when analysing the
company's performance.
7. Sample Bias: If the study only focuses on Thomas Cook India Limited, it may not provide a
comprehensive understanding of the industry's overall performance. Comparisons with other
companies or industry benchmarks could help mitigate this bias.
8. Qualitative Factors: Financial performance metrics may not capture qualitative factors such as
customer sentiment, brand perception, or employee morale, which can also influence a company's
success.
9. Long-Term Impact: The study may not capture the long-term effects of COVID-19 on Thomas
Cook India Limited's financial performance. Some impacts may only become apparent over a
more extended period.
10. Mitigation Strategies: The study may not account for the effectiveness of any mitigation
strategies implemented by Thomas Cook India Limited to address the challenges posed by the
pandemic.
11. Future Uncertainty: The study's findings may be subject to future revisions or reinterpretations
due to ongoing developments in the global economy, public health, or regulatory environment.
Addressing these limitations would be crucial in ensuring the study provides a comprehensive and accurate
assessment of Thomas Cook India Limited's pre- and post-COVID financial performances.