- 1. Financial Statements and Disclosure Analysis
- 2. Security Analysis and Fixed Income
- 3. Management of Bank Lending
- 4. Business Analysis and Valuation
- 5. Technical Analysis and Behavioral Finance
Financial Statements and Disclosure Analysis
The aim of this course is to learn the analysis of accounting policies, and how corporate managers may alter them to manipulate the financial statements of their firms. The course provides participants with a deep understanding of financial statements and associated footnote disclosures (accounting policies). The course will focus on intricate accounting issues with practical examples.
Security Analysis and Fixed Income
This course is an introduction to the world of investment analysis and involves a study of the investment environment and classical and modern security analysis. This course is constructed in such a manner so as to expose the student to the basic analytical techniques within the investments area. Focusing on individual securities this course describes and explains the techniques, vehicles, and strategies for implementing investment goals in light of risk return tradeoffs. In addition to a discussion of the institutional details of the security markets, types of investment instruments, and the traditional analysis of security prices, emphasis will be placed upon the determination of Security prices within the framework provided by Capital Market Theory .This course begins by describing the investment environment, the various developments in investment theory, and the principles and practices of valuation. The analyses of fixed-income securities, equity securities & derivative securities will then be discussed. Throughout the course, a global perspective will be emphasized.
Management of Bank Lending
Lending continues to be one of the core activities of commercial banks in many countries and is the major source of their earning. In the originate-to-hold model, the asset side of the balance sheet of banks is dominated by the loans portfolio. Historically, failure of banks has been closely linked to the poor management of the said portfolio. In the era of Basel-regulation, where the adequacy of capital in banking institutions is the pivot to ensure continuing stability of banks and financial institutions in any country, the lending portfolio draws the major portion of the capital requirement of banks. The course is aimed at developing the understanding of the students about the principles of bank lending, familiarizing them with the regulatory framework governing the lending activities of banks, equipping them with relevant approaches and techniques to arrive at sound lending decisions and imparting necessary insight among the students about the alternative mechanism available to commercial banks to manage problem loans.
Business Analysis and Valuation
Understanding what determines the value of a firm and how to estimate that value is a prerequisite for making rational business decisions. Entire industries (investment banking, securities analysis, and consulting) have grown prosperous providing valuation skills to investors and managers. This course provides both a sound theoretical framework for various corporate valuation approaches and a thorough discussion of how these approaches are applied to the real world examples. Specifically, the course builds links between underlying business events and the information in financial statements; provides a framework for financial analysis of firms; develops a comprehensive understanding of various corporate valuation methods and their applicability; and discusses various strategies for creation and measurement of Shareholders’ value.
Technical Analysis and Behavioral Finance
Technical analysis is based upon the idea that markets move in trends, and that trends are determined by investor's reactions to a wide variety of changing forces" (Pring). The course objective is to present you with the existing tools of technical analysis as a mean of understanding market workings, projecting market swings, and capitalizing on investment opportunities. Behavioral Finance is the study of how people in general and investors in particular make common errors in their financial decision making due to their emotions. It is the study of psychology and finance. The course objective is to expose students to the prevailing theories in Behavioral Finance and examine how investment decision making gets affected.
Wealth and Portfolio Management
This course aims at helping students know the functions/objectives of portfolio management, understand the process of portfolio construction, evaluation and revision. It also helps them understand the modern portfolio theory and its application along with the process of personal wealth planning and management. It also helps them learn practical applications of wealth planning and management i.e. planning and managing a set of securities, real estate, commodities, insurance needs, tax instruments and develop knowledge of how the risks and reward expectations and hence the process of wealth planning and management could vary depending on the age and economic status profile of individuals. Students also learn about the need and process of retirement planning.
Mergers and Acquisitions
This course defines the meaning of corporate restructuring; understand its forms and the motives behind it. Also helps students differentiate between mergers and acquisitions and define the various types of Mergers and acquisitions. It teaches students to apply a set of analytical tools to evaluate the value of a target firm. It helps students formulate and interpret how value is created in an M & A and discuss why certain M & A are unsuccessful. It also helps them interpret the meaning of synergy and its significance; learn how to value it and ways to achieve it. It teaches them to determine the pricing of the firm through the computation of the exchange ratio and the valuation exercise and understand the post-merger integration process along with the legal, regulatory and accounting issues in relation to an M & A exercise.
International Finance
This course aims to provide a thorough foundation of key concepts in International financial management. It aims to teach students to apply relevant techniques to measure and manage foreign exchange rate risk, to ascertain the interrelationships between inflation rate, interest rate, exchange rate and the way they affect business activities. It also helps them discern the nuances of Multinational financial management and develop the ability to apply principles of corporate finance in a global context and valuate the various forms of international financing and the role and significance of foreign exchange markets.
Financial Markets and Institutions
The course will provide a comprehensive view of the financial markets and financial Institutions in India, their functioning, and regulatory systems that are in place to ensure smooth running and management of these markets. This course will familiarize the learner with various participants in Financial Markets including Financial Intermediaries and also various types of financial instruments available for investment, speculation and arbitrage.
Value Investing-I
The course will provide various opportunities for students to be able to understand “Value” and “Price” and the dynamics that bring about mismatch between the two. The approach will involve understanding what Investment masters have shared as their understanding of markets, businesses, investments and behavioral dynamics with focus on readings and audio visual material.
Project and Infrastructure Finance
The course aims to help students in understanding project finance and how it is different from conventional corporate finance, the need and gain knowledge of methods of project and infrastructure finance for public private partnership (PPP) such as BOT, BOOT, etc. It also helps them gain knowledge of syndicate or consortia formation for project finance, off balance sheet financing, modern methods of financing such as forfeiting, securitization, factoring, etc. It also helps them in understanding evaluation of credit ratings in project-financed transactions and building alternate financing structures including bridge loans, construction and portfolio financing, takeout financing, formation of Special Purpose Vehicle, Use of Private Equity and Venture Capital, etc. It teaches them appreciation of various tools and techniques that are used in project management in general and infrastructure projects in particular while learning about management and control systems for project finance and management.
Taxation
To be updated soon.
Derivatives and Risk Management
This course aims to help students have a working knowledge of derivatives and in-depth study of types of options, properties of options, put call parity, valuations of options (using different methods such as risk neutral approach, binomial approach and finally the “Black and Scholes Pricing model”). It also helps them understand “Option Greeks” and their significance for various directional and volatility based option strategies and applications of derivatives as instruments for speculative gains using different trading strategies and for management of financial risks (risk reduction and hedging) and effective financial risk management strategies.
Value Investing-II
Adding on to the Value Investing I course, in this course emphasis will be on the project. The project will be managed and evaluated around various parameters. The students will be expected to prepare a detailed report for investment in an equity instrument.