PROGRAMME TITLE
STRATEGIC FINANCIAL MANAGEMENT
Program Objective
Managers and other senior professionals are frequently called upon to make decisions based on accounting and financial parameters. This requires them to develop the skills necessary to assess the output of accounting and financial systems.
The objective of this program is to facilitate learning of accounting and finance concepts, methods and applications. The participants will develop skills to leverage knowledge in accounting and finance in order to competitively position their organizations.
Program Content
Session 1 Introduction
• Objetive of financial management.
• Time value of money
Session 2 Cost of Capital
• Dividend Valuation Model
• Cost of Debt
• WACC
• MCC
Session 3 Incorporating systematic risk –Cost of Capital
• CAPM
• Extended CAPM.
• Link between Investment and Financing Decisions
Session 4 Capital Structure
• Traditional theories
• MM approach
Session 5 Investment Appraisal • ROFE/NPV/IRR/PB
• Limitations of IRR.
• MIRR
Session 6 Investment Appraisal
• Case Study
Session 7 Investment Appraisal
Case Study , contd.
Session 8- Leasing.
· Accounting treatment.
· Evaluation of Lease.
Session 9 – Expansion and Contraction
· Mergers and the market for corporate control
Session 10 – Expansion and Contraction , contd.
· Divestitures, Spin-Offs, Equity Carve –Outs, Levarged buyouts etc.
Session 11- Strategy and Balanced Scorecard
· Implementation.
· The four perspectives.
· Pitfalls.
Session 12- Strategic Profitability Analysis.
· Strategic Operating Income Analysis.
Session 13- Cost control and management.
· Evolution.
· Incorporating changing environment.
Session 14- Target Costing and Standard Costing.
· Case Study.
Session 15- . Target Costing and Standard Costing.
· Case Study , Contd.
Session 16- Recap.
Participants’ Profile
Senior Executives
For whom?
· Officers and above from the manufacturing domain.
· Finance and accounting professionals.
· Decision makers.
Key Takeaways.
1. Cost and its relationship with changing environment and increased completion.
2. Cutoff rate of your company.
3. Mechanics of cost control and its limitations.
4. Role of Cost in decision making.
5. Combining value chain with traditional and modern costing for strategic purposes.
6. Transfer pricing
Duration
Two days
Course content of takeaways
1. Evolution of cost and management accounting.
2. Cost of capital.
3. Standard costing.
4. Marginal costing.
5. Value chain analysis, standard cost , target cost.
6. Domestic and multinational transfer prices.
Session wise plan
Session 1 - Introduction to Cost and Management Accounting
· Cost accounting and its relation to financial and management accounting.
· Evolution of cost accounting in changing business environment.
Session 2 – Mechanics and Cost Control
· The mechanics of cost accounting
· Cost control through Standard Costing and Variance Analysis.
Session 3 – Contentious issues
· Contentious issues in traditional cost management
· Limitations of traditional costing- behavioral aspects.
Session 4 – Allocation of costs
· Allocation, Apportionment and Absorption
· Strategic Allocation
Session 5 – Decision making
· CVP analysis and marginal costing.
· Joint costs
· Operating leverage
Session 6 – Cost reduction
· Value chain analysis.
· Target Costing
Session 7 – Transfer pricing
· Domestic transfers.
· Multinational transfers
Session 8 – Recap
FINANCE FOR NON FINANCE
Program Objective : The objective of this program is to make you literate in the domain of finance and accounting. Let us take some examples which highlight this need.
· You have always believed that ‘credit’ implies something positive. After all your bank statement gets credited when money flows in. However your accountant says that he is crediting increase in liabilities. The two imply diametrically opposite. None of them should be wrong-after all it is serious business.
· Your accountant friend tells you that profits earned are actually liabilities. What logic does it make? but actually they are.
· A production or a marketing manager is reported with an adverse Overhead Variance. What are these Overheads, why not underfoot. How are they loaded on his department?
· You are a production manager working day and night. Your management decides to sell what you produce at lower than cost. Have they gone crazy? Shouldn’t they ask you to reduce production?
· You have heard of accounting scams eroding life time wealth of investors. Enron comes straight to your mind. You are fearful that the same may happen to you. Or should you not invest.
· A CEO engineer is in the news for buying a multimillion dollar high class machine which is reported to be hurting the bottom line of the company to an extent that two of its units have already closed down. The CEO was highly qualified and a renowned world class engineer. Where did he go wrong?
The list of such situations goes on and on. What is important to note is that finance and accounting are important to one and all.
The program ‘Finance for Non Finance’ empowers the non-finance manager and others with an understanding of basic accounting and finance concepts.. The Participants learn to interpret crucial financial data in ways that enable them to improve their effectiveness and make a more productive corporate contribution for value creation. At the end of the course the participants will have an in-depth understanding of finance and accounts related matters which shall help them be more productive and efficient.
Program Duration The duration of the program is two days divided into four sessions. The first session is for three and a half hours. The other sessions are of three hours each. Every session shall have a tea break after 80 minutes of learning. Lunch shall be taken between the first two sessions each day.
Program Content Summary
Session 1
This session will help you understand the mechanics of accounting. How does the accountant arrive at the final statements? How are profits different from cash flows?. How a real life stands alone Balance Sheet , Profit and Loss , Statement of Changes in Equity and Cash Flow are understood.
Key words : Accounting Equation, Distinct Entity Concept , Capital and Revenue Expenditure, Double Entry, Accrual basis, Assets, Capital, Liabilities, Adjustments, Journal, Ledger , Trial Balance, Profit and Loss , Balance Sheet and Cash Flow Statement, PE Ratio, EPS.
Session 2
This session will help you understand the importance of time value of money and its relevance in decision making. Tools used to analyze potential investments shall be introduced in this session. How to compare alternative investments? How are investments analyzed?
Key words : NPV,IRR,PB,ARR, Present Value, Future Value, Annuity, Perpetuity, Cash Flows.
Session 3
This session shall highlight the link between the investment and financing decisions. Once a company has decided to invest, how does it plan to finance the same? Where should the money come from? How much would such money it cost? Is it prudent to consider financing costs as investment related cash flows?
Key words : Loan, Bonds, Debenture, Equity, Gordon Model, CAPM, Leasing, Cost of Capital, ROCE, Debt Equity Ratio, Return on Net worth.
Session 4
This session relates to times when the machinery has been bought and the operations begin. How to manage stock? What should be the debt policy? How long does it take to convert raw material into sales?
Key words : Cycle Count, Perpetual Inventory, JIT, Discount, Operating Cycle , Debtors turnover, Stock turnover
Programme Objectives
The landscape of financial markets is changing fast and financial innovation is seeking to expand its range of products to the ever-changing business scenarios with increased liberalisation. The knowledge of these products has become essential for all professionals engaged in finance.
Over a period of time various financial products have evolved and more are on the anvil. Some of these are simple to understand while some are indeed complex to comprehend. Financial managers are often found lacking in knowledge of these recent financial innovations, and therefore are constrained to take sound financial decisions. This programme is aimed at fulfilling of the knowledge gaps that prevails amongst financial managers.
The objectives of the programme include
a) Creating awareness of the various financial products available in the financial markets around the world,
b) Focussing on distinguishing features of various products available, and
c) Familiarising the participants with the valuation of these products through various kinds of arbitrages available.
Brief Contents of the Programme
The programme is spread over two days with four sessions on each day.
There are several instruments termed as derivatives available in the developed financial markets. The session-wise content for 8 sessions of the programme are briefly mentioned to provide a better idea of the contents, below:
Session No. |
Contents |
DAY 1 |
|
Session I |
Introduction to Derivatives
· Definition of derivatives, uses, and why they come into existence.
· The characteristics of derivatives.
· Differentiating among the different types of risks and utility of derivatives in managing the risks. |
Session II |
Forward Contract – The Backbone of Derivatives
· Definition of the forward contract, its description and implications |
Session III |
Futures Contract – An Introduction
· Standardisation of forward contract-financial markets
· Understanding quotations of futures
· Open interest and volume
Basics of Pricing Futures
· Cash and Carry and Reverse Cash and Carry Arbitrage
· Cost of carry model for forward and futures pricing
· Convergence
· Basis and basis risk
· Comparing forwards and futures. |
Session IV |
Options Contract - An Introduction
· Call and put options
· Features and payoffs of call and put options
· Comparing futures/forwards with options |
DAY 2 |
|
Session V and Session VI |
Options Pricing
· Binomial model
· Black Scholes model
· Monte-Carlo simulation |
Session VII and Session VIII |
Swap Contracts
· Definition of swap
· Describing the features of swaps
· Financial and Interest rate swaps
· Valuation of swaps
· Cancellation of swap |
Programme Objectives
The landscape of financial markets is changing fast and financial innovation is seeking to expand its range of products to the ever-changing business scenarios with increased liberalisation. The knowledge of these products has become essential for all professionals engaged in finance.
Over a period of time various financial products have evolved and more are on the anvil. Some of these are simple to understand while some are indeed complex to comprehend. Financial managers are often found lacking in knowledge of these recent financial innovations, and therefore are constrained to take sound financial decisions. This programme is aimed at fulfilling of the knowledge gaps that prevails amongst financial managers.
The objectives of the programme include
a) Creating awareness of the various financial products available in the financial markets around the world,
b) Focussing on distinguishing features of various products available, and
c) Familiarising the participants with the valuation of these products through various kinds of arbitrages available.
Brief Contents of the Programme
The programme is spread over two days with four sessions on each day.
There are several instruments termed as derivatives available in the developed financial markets. The session-wise content for 8 sessions of the programme are briefly mentioned to provide a better idea of the contents, below:
Session No. |
Contents |
DAY 1 |
|
Session I |
Introduction to Derivatives
· Definition of derivatives, uses, and why they come into existence.
· The characteristics of derivatives.
· Differentiating among the different types of risks and utility of derivatives in managing the risks. |
Session II |
Forward Contract – The Backbone of Derivatives
· Definition of the forward contract, its description and implications |
Session III |
Futures Contract – An Introduction
· Standardisation of forward contract-financial markets
· Understanding quotations of futures
· Open interest and volume
Basics of Pricing Futures
· Cash and Carry and Reverse Cash and Carry Arbitrage
· Cost of carry model for forward and futures pricing
· Convergence
· Basis and basis risk
· Comparing forwards and futures. |
Session IV |
Options Contract - An Introduction
· Call and put options
· Features and payoffs of call and put options
· Comparing futures/forwards with options |
DAY 2 |
|
Session V and Session VI |
Options Pricing
· Binomial model
· Black Scholes model
· Monte-Carlo simulation |
Session VII and Session VIII |
Swap Contracts
· Definition of swap
· Describing the features of swaps
· Financial and Interest rate swaps
· Valuation of swaps
· Cancellation of swap |
Customized two day Management Development
Essentials of Corporate Finance
|
|
Program Objective |
The program “Finance for Finance” has been specifically designed to give a comprehensive recap and a strategic outlook to the study of finance done while pursuing academic and professional qualifications.
|
Program Customisation |
We understand that learning needs of different industries are different. Keeping this in mind we have provided for a 3 hour session, especially for your specific requirements. Contents for this session may be decided by you. The other three sessions incorporate the essential elements of financial management as a must for all participants. |
Program Contents |
|
Analysis of Financial Statements and Working Capital Management
|
Ratio Analysis
Operating Cycle
Inventory Valuation |
Leverage |
Operating, Financial and Combined Leverage |
Investment Appraisal
|
Techniques(NPV/IRR/PB)
Projection of Cash Flow
Opportunity Cost of self owned land.
Validate third party Capex proposals
Limitations of IRR/NPV vs IRR/MIRR
Risk Analysis in Investment Appraisal
Total Risk for Multiple Investments |
Cost of Capital
|
Computation of WACC through DDM and CAPM.
Extended CAPM. |
Case Study- Investment Appraisal
|
Computation of cash flow from projected profits.
Incorporating Working Capital, Inflation and Tax adjustments. |
Capital Structure
|
Traditional theories.
MM approach.
|
Leasing |
Introduction and types
Accounting and Tax treatment of Leases.
Lease vs Buy
Sources of value in leasing.
|
Expansion & Contraction |
The value of control
Features of a merger, Accounting treatment.
Strategic and Financial Acquisitions, The earning and market value effect |
|
Sources of rearrangements of value. |
|
Defensive tactics |
Optional Contents(Suggested) |
Mechanics of Financial Accounting or |
|
Hedging through Derivatives or |
|
Cost Accounting &Decision Making |
Course Duration |
12 hours in 2 days |