| 1. | Overview of Financial Management | 10% |
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| | • | Finance and Related Disciplines | | • | Scope of Financial Management, | | • | Planning environment | | • | Key decisions of Financial Management | | • | Emerging role of finance managers in India | | • | Earnings distributions policy | | • | Compliance of regulatory requirements in formulation of financial strategies | | • | Sources of finance – long term, short term and international | | • | Exchange rate – risk agencies involved and procedures followed in international financial operations |
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| 2. | Financial Management Decisions | 15% |
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| | • | Capital structure theories and planning | | • | Cost of capital | | • | Designing Capital Structure | | • | Capital budgeting | | • | Lease financing | | • | Working capital management |
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| 3. | Financial analysis & planning | 10% |
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| | • | Funds flow and cash flow analysis | | • | Financial ratio analysis -Ratios in the areas of performance, profitability, financial adaptability, liquidity, activity, shareholder investment and financing, and their interpretation. | | • | Limitations of ratio analysis | | • | Identification of information required to assess financial performance | | • | Effect of short-term debt on the measurement of gearing. |
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| 4. | Operating and financial leverages | 5% |
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| | • | Analysis of operating and financial leverages | | • | Concept and nature of leverages operating risk and financial risk and combined leverage | | • | Operating leverage and Cost volume Profit analysis – Earning Before Interest and Tax (EBIT) and Earning Per Share (EPS), indifference point. |
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| 5. | Financial Strategy | 15% |
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| | • | Financial and Non-Financial objective of different organizations | | • | Impact on Investment, finance and dividend decisions | | • | Sources and benefits of international financing | | • | Alternative Financing strategy in the context of regulatory requirements | | • | Modeling and forecasting cash flows and financial statements based on expected values for variables – economic and business | | • | Sensitivity analysis for changes in expected values in the models and forecasts | | • | Emerging trends in financial reporting |
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| 6. | Investment Decisions | 15% |
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| | • | Costs, Benefits and Risks analysis for projects | | • | Linking investment with customer’s requirements | | • | Designing Capital Structure | | • | The impact of taxation, potential changes in economic factors and potential restrictions on remittance on these calculations | | • | Capital investment real options | | • | Venture Capital financing | | • | Hybrid financing / Instruments |
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| 7. | Project Management | 10% |
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| | • | Project Identification and Formulation | | • | Identification of Project opportunities | | • | Project Selection Consideration and Feasibility Studies | | • | Project appraisal & Cost Benefit analysis | | • | Source of Project Finance & Foreign Collaboration |
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| 8. | International Finance | 10% |
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| | • | Minimization of risk, | | • | Diversification of risk | | • | Forward and futures, | | • | Forward rate agreements | | • | Interest rate swaps | | • | Caps, floors and collars | | • | Parity theorems | | • | FDI | | • | Money market hedge | | • | Options. |
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9. | Sources of International Finance | 5% | | | • | Rising funds in foreign markets and investments in foreign projects | | • | Forward rate agreements and interest rate guarantees | | • | Transaction, translation and economic risk, Interest rate parity, purchasing power parity and the Fisher effects | | • | Foreign Direct Investment |
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10. | International Monetary and Financial System | 5% | | | • | Understanding the International Monetary System | | • | Export and Import Practices | | • | International Financial Management: Important issues and features, International Capital Market | | • | International Financial Services and Insurance: Important issues and features |
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