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

SECTION A: FINANCIAL MANAGEMENT [80%]

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

SECTION B: BUSINESS DATA ANALYTICS [20%]

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