PAPER 2: ADVANCED FINANCIAL MANAGEMENT CA Final Group 1

To acquire the ability to apply financial management theories and techniques in strategic decision making.

 

(i) Advanced role of CFO in various matters including Value Creation
(ii) Strategic decision making framework
(iii) Interface of Financial Policy and strategic management iv Balancing financial goals vis-à-vis sustainable growth

 

(i) Identification of types of Risk faced by an organisation
(ii) Evaluation of Financial Risks
(iii) Value at Risk (VAR)
(iv) Evaluation of appropriate method for the identification and management of financial risk

 

(i) Current trends in Capital Budgeting
- Impact of Inflation on Capital Budgeting Decisions
- Impact of change in technology on Capital Budgeting
- Impact of change in Government Policies on Capital Budgeting
(ii) Dealing with Risk in Investment Decisions ili
(iii) internal and External Factors affecting capital budgeting decision
(iv) Methods of incorporating risk in Capital Budgeting (v)
(vi) Adjusted Present Value vi Optimum Replacement Cycle

(i) Fundamental Analysis
(ii)Technical Analysis
- Meaning
- Assumptions
- Theories and Principles
- Charting Techniques - Basics
- Efficient Market Hypothesis (EMH) Analysis
(iii) Equity Research and tools available

(i) Theory of Valuation
(ii) Return Concepts
(iii) Equity Risk Premium
(Iv)  Required Return on Equity
(v) Discount Rate Selection in Relation to Cash Flows
(vi) Approaches to Valuation of Equity Shares
(vii) Valuation of Preference Shares
(viii) Valuation of Debentures/ Bonds
(ix) Role and Responsibilities of Valuers
(x) Precautions need to be taken by a Valuer before accepting any valuation assignment

 

(i) Portfolio Analysis
(i) Portfolio Selection
(iii) Capital Market Theory
(iv) Portfolio Revision
(v) Portfolio Evaluation
(vi) Asset Allocation
(vii) Fixed Income Portfolio
(viii) Risk Analysis of Investment in Distressed Securities
(ix) Alternative Investment Avenues
- Real Estate
- Gold
- Private Equity
- REITS
- Hedge Funds
- ETFs
- Mutual Funds
- Commodities

 

(i) Introduction
(ii) Concept and Definition
(iii) Benefits of Securitization iv Participants in Securitization v Mechanism of Securitization vl Problems in Securitization vil securitization Instruments
(vi) Pricing of Securitization Instruments ix Risks in Securitization x Tokenization
(v) Securitization in India

(i) Meaning
(ii) Types
(iii) Advantages and Disadvantages of Mutual Funds
(iv) Evaluation of Mutual Funds
(v) Role of Fund Manager in Mutual Funds

(!) Introduction to Forwards, Futures and Options
(ii) Futures Market
(iii) Pricing of Forwards and Futures
(iv) Hedging using Futures
(v) Options
- Option Pricing
- Option Greeks
- Exotic Options
(vi) Credit Derivatives
(vii) Real Options
(viii) Derivative Mishaps and Lessons
(ix) Swaps
(x) Commodity Derivatives
(xi) Weather Derivatives
(xii) Electricity Derivatives

(i) Factors affecting foreign exchange rate
(ii) Role of SWIFT in Foreign Exchange
(iii) National and International Payment Gateways
(iv) Exchange rate determination
(v) Foreign currency market
(vi) Management of Foreign Exchange Risk

(i) International Capital Budgeting
- Offshore Investment Strategies vis-d-vis Domestic Capital Budgeting
- Project vis-d-vis Parent Cash Flows
- Discounting Rate and Adjusting Cash Flows
- Adjusted Present Value
(ii) Raising funds from International Sources
(iii) Sovereign Funds
(iv) International Financial Centre (GIFT City)
(v) International Working Capital Management
- Multinational Cash Management
* Objectives of Effective Cash Management
* Optimization of Cash Flows/ Needs
- Multinational Receivable Management
- Multinational Inventory Management

(i) Benchmark Rates ii Interest Rate Risk
(ii) Hedging Interest Rate Risk
- Traditional Methods
* Asset and Liability Management (ALM)
* Forward Rate Agreement (FRA)
- Modern Methods including Interest Rate Derivatives
* Interest Rate Futures
* Interest Rate Options
* Swaps
* Swaptions

(i) Conceptual Framework of Valuation
(ii) Approaches Methods of Valuation
- Assets Based Valuation Model
- Earning Based Models
- Assets Based Valuation Model
- Earning Based Models
- Cash Flow Based Models
- Measuring Cost of Equity
* Capital Asset Pricing Model (CAPM)
* Arbitrage Pricing Theory
* Estimating Beta of an unlisted company
- Relative Valuation
* Steps involved in Relative Valuation
* Equity Valuation Multiples
* Enterprise Valuation Multiple
- Other Approaches to Value Measurement
* Economic Value Added (EVA)
* Market Value Added (MVA)
* Shareholder Value Analysis (SVA)
- Arriving at Fair Value
(iii) Going concern and Non-Going concern valuation
(iv) Valuation of Distressed Companies v Valuation of Start ups
(vi) Valuation of Digital Platforms
(vii) Valuation of Professional/ Consultancy Firms
(viii) Impact of ESG on valuation

(i) Conceptual Framework
(ii) Rationale
(iii) Forms
(iv) Mergers and Acquisitions
- Financial Framework
- Takeover Defensive Tactics
- Reverse Merger
(v) Divestitures
- Partial Sell off
- Demerger
- Equity Carveouts
(vi) Ownership Restructuring
- Going Private
- Management/ Leveraged Buyouts
(vii) Unlocking the value through Mergers & Acquisitions and Business Restructuring
(viii) Cross Border Mergers
(ix) Special Purpose Acquisition Companies (SPACs)

(i) Introduction including Pitch Presentation
(ii) Concept of Unicorn
(iii) Startup Initiative of GOl
(iv) Sources of Funding
(v) Succession planning in Business