Financial Management And Business Data Analytics (FMDA) (Paper-11) CMA Inter Group 2


1. Fundamentals of Financial Management - 5%
  • Introduction to Financial Management
    • Fundamentals
    • Objective of Financial Management
    • Scope and Functions of Financial Management
    • Profit Optimisation and Value Maximisation Principle
    • Dynamic Role of a CFO in Emerging Business Environment
  • Time Value of Money
    • Rationale
    • Techniques
    • Future Value and Present Value of a Single Cash Flow
    • Annuity and Perpetuity
    • Compound Annual Growth Rate (CAGR)
    • Practical Applications
  • Risk and Return
    • Various Connotations of Return
    • Ex–ante and Ex–post Return
    • Types of Risks
    • Calculation of Return and Risk
    • Capital Asset Pricing Model
2. Institutions and Instruments in Financial Markets - 10%
  • Financial Institutions
    • Reserve Bank of India
    • Commercial Banks
    • NBFCs
    • Insurance Companies
    • Pensions Funds
    • Alternative Investment Funds (AIF): Angels, Venture Capital, Private Equity and Hedge Funds
    • SEBI Regulations (including AIF Circulars)
  • Capital Market
    • Primary and Secondary Markets and its Instruments
    • Compulsory / Optionally Convertible Financial Instruments, Deep Discount Bonds
    • Euro Bond and Masala Bond
    • Rolling Settlement, Clearing House Operations
    • Dematerialization, Re-materialisation and Depository System
    • Initial Public Offering (IPO), Follow on Public Offer (FPO), Book Building, Green-shoe Option
    • Offer for Sale, Private Placement and Preferential Allotment
    • Insider Trading
    • Credit Rating - Credit Rating Methods and Rating Agencies in India
  • Money Market
    • Call Money
    • Treasury Bills
    • Commercial Bills
    • Commercial Paper
    • Certificate of Deposits
    • Repo, Reverse Repo
    • Promissory Notes and Government Securities
3. Tools for Financial Analyses - 15%
  • Comparative, Common-Size Financial Statements and Trend Analysis
  • Financial Ratio Analysis
    • Financial Ratio Analysis
    • Financial Scores: Altman’s Z Score, Beneish M Score, Piotroski F Score 
  • Fund Flow Statement – Preparation and Analysis
  • Cash Flow Statement – Preparation and Analysis
4. Sources of Finance and Cost of Capital - 10%
  • Sources of Finance
    • Long Term and Short Term
    • Financing a Start-up – Alternative Investment Funds and Crowd Funding
    • Cost of Capital
      • Meaning of Cost of Capital
      • Computation of Weighted Average Cost of Capital
5. Capital Budgeting - 15%
  • Introduction to Capital Budgeting
  • Identification of Cash Flows and Forecasting
  • Cash Flow vs. Profit of the Firm
  • Evaluation Techniques – Non-discounted and Discounted Cash Flow Methods
  • Hurdle Rate in a Conglomerate Environment
6. Working Capital Management - 15%
  • Introduction to Working Capital Management
    • Theoretical Underpinnings
    • Planning of Working Capital
    • Working Capital Cycle and Cash Cycle
    • Estimation of Working Capital Requirement
  • Receivable Management
  • Payable Management
  • Inventory Management
  • Management of Cash and Cash Equivalents
    • Motives of holding Cash
    • Objectives of Cash Management
    • Models of Cash Management
  • Financing Working Capital
    • Monthly Cash Flow Forecast and Analysis
    • Maximum Permissible Bank Finance (MPBF) Calculation
    • Commercial Paper
    • Export Financing – Pre-shipment and Post-shipment Packing Credit
7. Financing Decisions of a Firm - 10%
  • Capital Structure and Capital Stacking
    • Collateral
    • Covenant (Financial and Non-financial), Negative Covenants and Cross Default
    • The Institute of Cost Accountants of India CMA Syllabus 2022
    • Capital Stacking and Risk Analysis
    • Senior and Junior Debt Management
    • Capital Structure Theories
  • Leverage Analyses and EBIT – EPS Analysis
  • Dividend Decisions and Dividend Theories

8. Introduction to Data Science for Business Decision-making - 5%
  • Meaning, Nature, Properties, Scope of Data
  • Types of Data in Finance and Costing
  • Digitization of Data and Information
  • Transformation of Data to Decision Relevant Information
  • Communication of Information for Quality Decision-making
  • Professional Skepticism regarding Data
  • Ethical Use of Data and Information
9. Data Processing, Organisation, Cleaning and Validation - 5%
  • Development of Data Processing
  • Functions of Data Processing
  • Data Organization and Distribution
  • Data Cleaning and Validation
10. Data Presentation: Visualisation and Graphical Presentation - 5%
  • Data Visualisation of Financial and Non-financial Data
  • Objective and Function of Data Presentation
  • Data Presentation Architecture
  • Dashboard, Graphs, Diagrams, Tables, Report Design
  • Tools and Techniques of Visualisation and Graphical Presentation
11. Data Analysis and Modelling - 5%
  • Process, Development and Types of Data Analysis
  • Data Mining and Implementation of Data Analysis
  • Analytics and Model Building (Descriptive, Diagnostic, Predictive, Prescriptive)
  • Standards for Data Tagging and Reporting (XML, XBRL)
  • Cloud Computing, Business Intelligence, Artificial Intelligence, Robotic Process Automation and Machine Learning
  • Model vs. Data-driven Decision-making