Finance Career Guide Ebook by IMS Proschool

Finance Career
Guide
www.proschoolonline.com
KICK START YOUR CAREER IN FINANCE
Recently, many new career opportunities have opened up in finance sector. Student aspiring to
make a career in this sector need to be aware of the new emerging qualifications & skills set
required by the industry before choosing a career path. To help students plan their career, IMS
Proschool has taken an initiative to publish this information booklet on various career options in
finance.
This guide is designed to briefly introduce various areas/jobs and qualifications in finance. It will
help you to identify various career options in finance and how a person can make a career in this
existing field.
If you need more advice you can visit our website http://www.proschoolonline.com/blog/
wherein we have given additional details on different options in finance careers.
We are grateful to Ms Shilpa Menon (MBA – IIT Madras), Mr Vivek Gupta (MBA-IIM
Bangalore), Mr Yogesh (CA, CIMA Finalist), Ms Munira Lokhandwala (IIM Calcutta, FRM,
CFA), Ms. Neha Deshpande (Content Writer), for their valuable contribution in developing the
finance career guide.
Wish you all the best.
IMS Proschool Team,
www.proschoolonline.com
Index
Sr. No. Topic Page No.
Profiles
1 Commercial Banking 1–6
2 Corporate Finance 7 – 13
3 Credit Analysis 14 – 20
4 Equity Research 21 – 26
5 Financial Risk Management 27 – 34
6 Investment Banking 35 – 42
7 Project Finance 43 – 49
8 Wealth Management 50 – 56
Qualifications
1 Chartered Accountancy (CA) 57 – 62
2 Chartered Financial Analyst® (CFA) 62 – 67
3 Certified Management Accountant (CMA) 68 - 73
4 Certified Financial PlannerCM (CFP) 74 – 79
5 Financial Risk Manager® (FRM) 80 – 86

Association of Chartered Certified Accountants
6 87 - 92
(ACCA)
Chartered Institute of Management Accountants
7 93 - 98
(CIMA)
8 Chartered Public Accountant (CPA) 99 - 104
DipIFR for International Financial Reporting
9 105 - 107
Standards (IFRS)
10 Company Secretary (CS) 108 -115
11 MBA (Finance) 116 - 121
12 Informative Articles 122 - 130

Job Profiles in Finance
Commercial
1 Banking
What is Commercial Banking?
We all have some sort of experience with commercial banking services.

When you needed that education loan, or when you wanted to put some
money in a fixed deposit, you approached a bank. Banks typically take
deposits from customers and use that to extend loans to other customers.
These two are the primary services of a commercial bank. Taking in

deposits is a liability for a bank, so these come under the ‘Liabilities’
division, while lending a loan is an asset and comes under the “Assets’
division. Banks have several other products within these two broad
headings of assets and liabilities. A commercial bank’s suite of products
include but is not limited to:
Under Liabilities:
 Current Accounts
 Savings Accounts
 Fixed Deposits
 Term Deposits
Under Assets:
 Loans
 Credit Cards
 Trade Finance
 Commercial Vehicle funding
Other Services:
 Insurance
 Investment services
2
 Money transfers
The career we are going to discuss is that of a Commercial Banking

Relationship Manager (RM). A Commercial Banking RM is responsible
for generating, maintaining and growing a bank’s customer base.
The role requires knowledge of all the banking products on offer (Banks
keep improvising on the type of products, credit terms and interest rates),
and a penchant for understanding a customer’s requirement and matching
it with the products on offer. Typically, it requires good salesmanship as
well as comfort with banking products.
Key skills required:
Key skills for an entry-level role would be:
1. Analytical mind: This job needs you to wrap your head around
numbers.
2. Knowledge of banking products, markets and relevant

regulations: You do not need to be a genius in finance to get through
a Relationship Manager role. However, you must definitely have a
good working knowledge of the banking products on offer, basic
banking regulations, a bit about taxation as well as financial markets.
3. Sales and negotiation skills: This is a significant skill that banks

look for while hiring an RM. While people can be trained about the
banking products, sales skills are a little more innate in nature and
will be tested in more detail during interviews.
4. Strong communication & presentation skills: In this role, your

primary job is to go out and meet clients, constantly interact with
them and see through any transactions they may want to make. So
inter-personal skills and presentation skills are very important. You
also need to be able to crisply explain complex products in a lucid
manner to clients who may not understand financial jargon.
How to get in:
 Most RMs are MBAs in either finance or marketing.

 Most banks offer internships to first year MBA students for these
kind of roles, and then offer a full time position to those showing
promise.
3
Job profile:
 RMs could either service retail clients or institutions

 In case of retail clients (called Retail Banking), the products in
focus are deposits, savings account, credit cards and loans.
Investment services or demat accounts are also other standard
offerings.
 In case of institutional clients (also called Corporate Banking),
the focus is on current accounts, loans, overdrawing facilities,
working capital, trade finance, etc.
 The job, as mentioned above, is to bring in new business while
servicing the existing customer base.
 Usually, RMs are given targets by their firms which they need to
achieve.
 RMs also need to work on all the paperwork related to the banking
services before turning them over to the operations teams in their
banks.
A typical day in the life of an RM (entry level):
 You take a look at all the meetings lined up for the day: you have 2
client meetings and 2 internal meetings.
 You run to the first meeting and help your client (a big corporate)
decide on the right terms for a 10 year loan.
 On coming back, you initiate the paperwork on the loan and also a
term deposit another client wants to start.
 You rush to an internal meeting where the product team is discussing
a new product being rolled out.
 You then meet some clients who have come to the branch and solve
their queries (an unscheduled meeting).
 Final meeting with a client, another internal meeting with the
compliance team, some more paperwork and then you are done for
the day!
4
Salary and perks:
 The starting salary for a Commercial Banking RM is around INR 7-

10L / annum depending on the bank.
 MNC banks often pay higher (~INR 12L+) along with a variable
bonus.
5
Interview with Shreya Telang, who is an RM with an MNC bank
1. Please tell us about your background and qualifications
I completed my MBA in marketing and finance (equal credits) from the

Dept of Mgmt. Studies, IIT Madras. Prior to that, I did my engineering in
Electronics from Pune University.
2. Why did you decide to pursue this career and how did you get
into this role?
I was interested in the financial domain and even more interested in a

client-facing role. The idea of marketing financial products and services
very much appealed to my interest in financial products as well as
meeting new people. I was recruited for an internship initially, post which
I was offered a full time position based on my performance.
3. Your current role and a typical day?
My current role is maintaining an effective and efficient relationship with

the existing client base as well as working to build new relationships. A
typical day would see me meeting/interacting with clients and
coordinating with internal teams to service my client requests.
4. High points in your career so far?
I work in the corporate sub division of retail assets within my bank, and I
have interacted with some top names in the industry. I would say these
meetings were definitely some of the high points in my career.
5. Challenges faced?
Since banking is highly regulated, some client requests do not get

fulfilled. In such cases, pressure from the clients as well as your own
internal teams needs to be managed well. Also, sometimes the targets
become difficult to meet especially when there is stiff competition for a
particular product from other banks.
6
6. Outlook for the industry?
As more and more customers are becoming internet and technology

savvy, fewer of them are coming in to the branch, This means that an RM
needs to be extremely proactive and inventive and use technology to
his/her advantage to generate new business.
7. Career opportunities for aspirants in India (and elsewhere)?
All banks need RMs to service their clients and hence the career options
are unlimited.
8. Word of advice for aspirants?
This field is very competitive. You must have a pleasing yet assertive
personality, strong communication skills and raw smarts to survive and
do well in this field.
Further Reading:
http://www.proschoolonline.com/blog/category/explore-
careers/commercial-banking/
7
Corporate
Finance/General
2 Financial
Management
What is Corporate Finance/General Financial Management?
It is not enough that a company markets its products and services. To be

successful and solvent, it needs to keep its books in order, decide on
appropriate funding, keep its investors happy, pay taxes, evaluate new
projects, manage competition, optimize its cash flows, comply with all
regulations and generally aim to increase shareholder wealth. No matter
what type of firm, every firm has a finance department that takes care of
all these matters. All of this is challenging work and specialists are hired
for these roles. In India, Corporate Finance usually means General
Financial Management (Not to be confused with Corporate Finance in
Investment Banks which actually means Investment Banking services).
Depending on the size and the nature of the firm, the finance department
may be small or large with several sub divisions. At the very least,
Corporate Finance executives have to deal with accounting, financial
reporting, taxation and cash management. Risk Management and
Treasury Management are sometimes rolled into the corporate finance
division, when the firm is small. Corporate Finance therefore is present in
every firm as a backbone support function. Apart from this, consulting
firms hire corporate finance professionals to help them advise their
clients. A Corporate Finance executive can one day even hope to sit in the
CFO’s chair. So the career options are varied and unlimited.
8
1. Strong analytical and quantitative skills: Since this is a core

finance and numbers related job, it is important to be comfortable
with numbers and to possess strong analytical skills to put together
various kinds of reports.
2. Knowledge of accounting, financial analysis and reporting,

regulations, taxation: Knowledge is the differentiator that can
decide who can and who cannot be hired for this role. Someone who
already has the requisite knowledge will always be preferred since
being a support function, firms prefer not having to train the
employee. Having the required qualifications and/or undergoing
courses offered by training institutes would help in a big way.
3. Attention to detail and diligence: Ultimately, you will be working

with numbers and it is no good if you made a decimal point error in
writing down the profits! Every word and number put out has strong
implications on the company’s finances and hence accuracy and
diligence is key.
4. Problem solving: You need to demonstrate problem solving skills if

you are vying for a senior role.
5. Strong interpersonal skills: You will liaise with a lot of people in

this job. They could be people within your own team, other
departments, investors, customers, suppliers, bankers etc. To be
effective, you need strong interpersonal skills and assertiveness.
How to get in:
 A major chunk of Corporate Finance professionals or Finance

Managers are CAs or MBAs in finance.
 Rarely, you also see commerce graduates who have worked their
way up the ladder. However you meet promotions and move higher,
you should ideally have a CA / MBA.
 Certifications like the CFA may give you the extra knowledge/edge
needed.
9
Job profile:
At the entry level, candidates join as Analysts or Assistant Managers.

Some of the key areas of responsibility are:
 Accounting and book keeping

 Compliance with all tax related and regulatory requirements and
suggestions on improving tax structure
 Gathering, analysis and reporting of financial data on a periodic basis
to all stakeholders (daily/weekly/monthly)
 Assessing the funds and working capital required, assisting in fund
raising and actively managing working capital
 Preparing project reports and financial models and get the same
appraised from banks and financial institutions
 Getting optimal audit rating from rating agencies
 Managing foreign exchange exposure
 Managing long-term and short-term investment strategies
 Effectively managing Banks/Lenders, Board of Directors and
investor relationships
 Assisting in potential M&A/Fund raising/IPO activity
 Overall striving towards efficient management of the company’s
resources and minimizing costs
A typical day in the life of a Corporate Finance executive (entry

level):
 The day typically begins by working on the periodic financial reports

and looking at the accounts of the firm.
 A project needs funding and you have to make a financial model for
it.
 You have to attend a meeting with the sales team to understand their
projections for the coming month.
 You have to put together a report for a bank which is about to lend
you a large sum.
 The compliance division needs to discuss some matters, You have to
attend and take notes.
 Then comes a weekly review of investments meetings with your
team.
 Done for the day, but tomorrow is yet another day filled with
numbers!
10
Salary and perks:
 The starting salary for Corporate Finance Analysts is around INR 5-

7L /annum.
 Consultancies and MNC firms often pay higher.
 At the senior level, Corporate Finance executives are very
handsomely rewarded based on their experience.
Interview with Nageshwar Rao Pusarla, who has 6+ years of

experience in the Corporate Finance domain:
I am a B.Com graduate and a Chartered Accountant. I am currently a

Manager in the Financial Reporting team at Dentsu Aegis Networks,
handling a team of 5 people. Previously I have worked with HT Media
and Quest Global.
2. How did you get into this role?
I was selected via campus placement.

11
The work of a corporate finance professional is vast and includes various

things, however at the entry level the job mostly involves playing with
excel sheets and assisting seniors involved in analyzing various things for
decision making. The role also includes reaching out to various
departments and business units/branch offices for information,
consolidating the inputs and analyzing them. The advantage of a
corporate finance role is that you get the opportunity to interact with and
work with the top management like CFOs, heads of different departments
etc. This gives you a very good exposure and steep learning curve.
In my first job our team completely changed the way forecasting and
budgeting was done in the company. We implemented a detailed plan that
forced the business and productions team to track their actual numbers at
the lowest level and helped in identifying several inefficiencies. I was
promoted as a Manager from Assistant Manager for my contribution to
my current team. I was told that the team was very happy with me for
being very supportive and helpful. The best thing you can hear as a
manager is that your team is happy working with you.
5. Key projects you have worked on?
 Planning, Budgeting and forecasting financials, including preparation

of annual, long-term plans and quarterly forecasts
 Management Decision support
 Competition benchmarking
 Assisting in Cash flow and Working Capital Management
 Pricing/Deal advisory which entails providing quotes or sales price to
the sales team for the deals/projects
The biggest challenge in a financial planning team is that most of the

requests are received from the top management and are always ad-hoc
and very urgent. Also, to fulfill these requests, you need to source
information from other branches/business teams. You need to fast and
need to have excellent communication skills and relationships, which
play a very important part in getting the information.
12
I was an introvert and had to really struggle at the start of my career. The
challenge faced while working in a pricing team is to balance the
expectations of both the Management and Sales teams. The Management
will always expect high margins but Sales teams will always challenge
you on the price quoted citing the difficulty in selling at a higher price.
You need to strike a balance between good margins and competitiveness.
The outlook for a Corporate Finance professional looks very bright in

India. The tremendous growth in the economy is opening up new
opportunities as new businesses are setting up. India has become a global
hunting ground for talent. Now we have the opportunity to think of
“global” careers. Global companies like IBM, Tesco, Honeywell,
Goldman Sachs, JP Morgan and many others have setup their captive
finance functions in India, providing a great opportunity for Indian
finance professionals.
The various career opportunities/options for can be:
 Financial Analyst: Duties involve determining financing needs,

analyzing capital budgeting projects, long-range financial planning,
analyzing possible acquisitions and asset sales, working on budgets,
analyzing competitors, implementing financial plans.
 Financial Controller: Duties involve financial planning, accounting,
financial reporting and cost analysis. You may be called on to
implement or work with a complex costing system, efforts at
financial reengineering, transfer pricing issues or interface with
auditors. This job requires extensive accounting knowledge.
 Treasurer: Duties involve supervision of Treasury department
which is involved in financial planning, raising funds, cash
management and acquiring and disposing of assets.
 Credit/ Commercial Manager: Duties include establishing policies
for granting credit to suppliers, setting guidelines for collecting on
credit and considering whether to securitize receivables.
 Investor Relations Officer: Duties involve dealing with the
investing public by disseminating financial information, responding
to queries from institutional investors, issuing press releases to
explain corporate events and organizing teleconferences with
investors.
13
 More sophisticated corporate finance jobs might involve mergers

and acquisitions activity, such as calculating the value of
an acquisition target or determining the value of a division for a
spinoff.
In today’s competitive world, it is not enough to have strong technical

skills. In addition to their subjects, aspirants should also focus on below
areas:
 Soft skills: You must enhance your communication skills,

presentation skills and soft skills. Those who are not confident about
their soft skills can join classes to develop their personality, body
language, inter-personal and social interaction skills.
 Industry Awareness: You should be aware of the latest trends in
your field. It is important to keep on doing courses to update your
knowledge. Participate in all kinds of group activities like group case
studies, simulations, industry interaction programs and inter-college
level academic and extra-curricular competitions to keep yourself
updated.
 Networking: To be a successful professional, you must be well
connected and establish a good rapport with people in your field.
Further Reading:
careers/corporate-finance/
14
Credit Analysis
3
What is Credit Analysis?
A bank has received an application for an INR 30 lakhs home loan from
an individual. Another bank has received an application for the issuance
of a credit card. A non-banking lending institution has been approached
by a firm for a loan of INR 1 crore for expansion purposes. A Credit
Rating agency is deciding which of Country A and Country B is more
credit worthy.
What is common between all these? A Credit Analyst will be required to

work on each of these cases to find out if it’s safe to lend/issue credit
(cards) to these entities.
Credit Analysis entails researching and analyzing the debt profile and
debt servicing abilities of individuals, companies or even sovereigns (i.e.,
countries). A Credit Analyst therefore, is someone who finds out the
credit worthiness of an entity (either an individual or company or
country) depending on the demands of the situation. In the case of issuing
loans, companies/individual borrowers are appraised to see if they have
the ability to service the debt and also if it is safe to give out the loan. In
the case of a credit card application, income streams and previous
defaults, etc., will be analyzed. In the case of countries, although more
complex to analyze, the end result is the same – an assessment of risk –
also called a ‘Credit Rating’. Below is a chart with rating categories used
by 3 leading global Credit Rating agencies.
15
Credit Analysts are hired across several types of firms:
1. Commercial Banks: These firms need to assess the risk involved in

lending debt or issuing credit cards. They may check credit scores of
borrowing individuals or scrutinize a company’s books to understand
the credit risk.
2. Credit Rating agencies: These firms are responsible for rating

companies (or even countries) on the basis of their riskiness/credit
worthiness. Investors and analysts all across depend on these ratings
for debt related transactions.
3. PE firms and Investment Banks: These firms either invest/advise

their clients on investing in debt instruments and hence often have
their own Credit Analysis teams.
4. Non-banking financial institutions: These are non-banking lending

firms and often they lend to a riskier band of customers. Hence,
Credit Analysis for them is essential.
5. KPOs servicing the above companies: These firms are third party
vendors providing Credit Analysis services to the companies
mentioned above.
16
1. Strong analytical and quantitative skills: Credit Analysis requires

digging deep into financial statements and analyzing credit default
risks using tools like ratio analysis in multiple scenarios. Hence it is
important to have an analytical bent of mind.
2. Knowledge of financial (and at times, risk) analysis: A Credit

Analyst needs to know his/her way around financial statements, and
develop a nose for finding items that may impact the company’s (or
individual’s) debt paying abilities. Risk analysis is often part of the
job profile and different scenarios may need to be analyzed.
3. Attention to detail and diligence: Needless to say, errors made

while assessing an entity’s credit worthiness can prove costly for
every stakeholder involved.
4. Communication skills: Credit Analysts (especially those working

for rating agencies) are involved in preparing rating/financial
standing reports. This calls for excellent report writing skills. Apart
from this, they also have to interact with company management or
clients regularly, to cull out information as well as to discuss issues.
Such probing for information demands good people and oral
communication skills.
5. Comfort with Financial/Statistical software: Credit analysis often

includes risk analysis using statistical software. Hence knowledge
and comfort with these would be an advantage.
6. Multitasking: Most Credit Analysts work on several companies’

data at a time or may be involved in processing more than one loan /
credit card application. This underscores the importance of
multitasking without compromising on accuracy.
How to get in:
A Credit Analysis job is challenging and requires strong analytical skills
 Chartered accountants and MBA graduates are most sought after for
these jobs since they have a solid background in accounting and
financial analysis.
17
 Graduates are often recruited as junior analysts / management

trainees assisting analysts. However, to move up the ladder, one
usually needs a Masters degree.
 A Chartered Financial Analyst (CFA) or Financial Risk Manager
(FRM) certification is sought after in this field.
Job profile:
At the entry level, candidates join as Analysts. They typically have

MBAs in finance or are CAs.
Credit Analysts receive new cases from teams within their own
companies or from clients .
 The key job is to assess the credit profile of the entity being
analyzed. The Credit Analyst goes through all relevant data
pertaining to the entity, including business plans, source of funding,
risks as well as industry-wide data. In some cases, they may have to
visit the site of the company to get operational data.
 After all the information is gathered, the analyst puts together the
Credit Analysis Report and comes up with the recommendation on
whether a loan can be given or the rating for the company.
 These recommendations are then presented to seniors/rating
boards/clients.
A day in the life of a Credit Analyst (entry level):
 A major chunk of time is spent at the desk researching, analyzing and

reporting financial and operational data leading to credit assessment.
 Several cases are usually processed simultaneously, hence you may
be working on two or more separate analyses on any given day.
 Meetings with clients/internal teams/travelling to company sites take
up a lot of time as well. Preparing materials like reports or notes
needed for these meetings is also part of the analyst’s job.
 Analysts may also need to do some administrative tasks like
arranging logistics for site visits or preparing internal memos, etc.
 A Credit Analyst typically has better work hours compared to other
financial analyst profiles (like in IB or ER). You don’t usually need
to put in very long hours or all-nighters.
18
Salary and perks:
 The starting salary for Credit Analysts is around INR 5-7L / annum.
Bonuses may be available, but are not the norm.
 Perks include traveling to client sites and exposure to rating boards
that comprise the bigwigs of Credit Analysis.
19
Companies to target:
 Rating Agencies: CRISIL, CARE, ICRA, Fitch Ratings (India),

Brickwork Ratings
 Banks and Financial Institutions: ICICI, HDFC, Kotak, IndusInd,
Deutsche Bank, Credit Suisse, HSBC, Citi
 Third party vendors (KPOs): Aranca, Genpact, Dun Bradstreet
Interview with Kinjal Shah, who has a 6+ years of experience in a top

Credit Rating firm
I completed my BMS from Narsee Monjee and then went on to do my

MBA (majoring in finance) from NMIMS, Mumbai.
into this role?
I always knew that I wanted to do a core finance job. Among the many
roles that were offered on our campus, this role seemed to do justice to
both my interests and qualifications and so I applied for it and got
through.
3. A typical Day for a Credit Analyst?
At the entry level, you start off with assisting seniors in writing credit
reports. Credit rating typically involves receiving rating mandates from
companies, post which we have to gather information about them.
Based on the information sent by the company, secondary research and

meetings with all divisions in the firms operations etc., reports are made
on the credit worthiness of the firm. The reports are then presented to a
rating committee that takes the final call. As you grow senior, the report
writing part reduces and there is more emphasis on attending meetings,
checking reports etc. One may also be involved in contributing towards
general research content.
Meeting the top management and directly interacting with big names in
different industry sectors are definitely high points in my career.
20
5. Projects you have worked on?
I have worked on reports for several reputed names in the Media,

Entertainment and Pharma sectors in India.
Sometimes we receive credit rating mandates with very short deadlines

(3-4 days), which can be difficult to manage, given that we may be
working on several other things at the same time.
The Indian debt market is not yet fully developed and hence opportunities
to rate different types of instruments are still low. However, it is expected
that the market will develop and with it bring a lot more scope for credit
rating and analysis. Basel 3 has indicated that banks should have their
own internal rating teams, in which case the structure of the industry may
see changes.
Credit analysis will be much in demand when the Indian debt market
scenario improves. Most credit analysts are picked via campus or lateral
placements. Most firms do emphasize on hiring MBAs and CAs.
The knowledge gained in this field is immense. Interactions with top

management and exposure to different sectors make the job very
enriching.
Further reading:
careers/credit-analyst/
21
4 Equity Research
(ER)
What is Equity Research (ER)?
You have followed the stocks section of the newspapers religiously, but
just can’t fathom which stock to pick or which of your existing stocks
you should sell. Should you wait for your falling stocks to rise again so
you can make a profit? Or should you sell now and cut your losses? The
stock market can be a tough place. Wouldn’t it be nice to have someone
tell you which stocks to buy, hold or sell?
That’s where Equity Researchers come into the picture. Most Investment
Banks have an Equity Research (ER) division, which is a team of experts
closely following and analyzing listed companies on an ongoing basis.
They delve deep into the fundaments of the companies they cover
(including industry sector and general macroeconomics), and come out
with reports and ratings on whether the stock is a good buy (will
appreciate in future) or hold (wait for a better time) or sell it off (likely to
fall further). This is similar to a movie review by a critic, only, the movie
in question is ongoing and the reviews may keep changing over time.
These reports are then distributed to the firm’s clients who in turn use the
detailed analysis and insights in them to make intelligent decisions about
trading the stock. The clients could be private investors, institutional
setups or even private equity companies. M&A bankers also use ER
reports extensively to build models and value companies. Occasionally,
ER teams also produce reports on the broader macroeconomic
environment, or a particular industry sector, etc. They may also analyze
commodities or bonds (debentures) issued by companies and publish
reports on them.
22
Fresh candidates join the industry as Associates assisting the more senior
Analysts. So the key skills for an entry-level role would be:
1. Strong analytical and reasoning skills: Associates have to be

strong in analytical ability. They need to draw out the story behind a
company’s data, whether qualitative or quantitative.
2. Knowledge of financial statements and their analysis: Big banks

conduct their own training programs and teach their incoming
batches everything from scratch. However, during lateral hiring or in
the case of boutique firms that don’t have training resources, a
candidate that knows the basics of financial analysis would definitely
have an edge over others. Associates are encouraged to invest in a
CFA program (Most firms usually refund the exam fees if cleared in
the first attempt).
3. Attention to detail and diligence: Any small error made by the

Associate / Analyst in their analysis can cause huge losses for the
investors that depend on their opinion. Hence, it is extremely
important to be thorough and pay very close attention to detail.
4. Ability to develop industry expertise: To be successful in this field,

Associates must aim to become experts in their sectors. This would
translate to becoming a top notch Analyst and a force to reckon with
among the industry players.
5. Writing and presentation skills: An Equity Researcher must

communicate well, at least in the written form to begin with. As
he/she becomes an Analyst, apart from coming up with well written
reports with reasonable predictions, networking abilities also become
important as he/she may have to do marketing events like arranging
non-deal road shows for their clients.
How to get in:
 Make it to the top tier B schools – meaning the IIMs A, B, C or ISB

or other institutes in this league. Bulge bracket banks visit these
campuses to select Associates for their ER division; either via
internships or directly via their global ER program.
23
 You may also graduate from the next tier of MBA institutes (MDI,
IIFT, IIT SOMs etc.), or complete Chartered Accountancy.
Supplement this with a CFA charter and/or certifications like the
FRM. It may also serve you well to know financial analytics and
modeling. This could land you with an ER job in smaller Indian
firms.
Job profile:
At the entry level, candidates join as Associates. Typically they have

MBAs in finance or are CAs.
 Typically the ER division is split into different coverage groups, each

coverage group focuses on a specific industry sector. So, Associates
will be allocated a particular sector and some companies within that
sector .
 Associates assist Analysts in publishing reports. The major chunk of

work involves research on the general economy, the sector and the
companies in question. For this, they may directly contact companies
or use secondary data sources (internet or other public sources). They
have to constantly keep up with the news and events in their sector.
Once the data is gathered, detailed financial models are constructed
to come up with company valuations.
 Every quarter, once the earnings of a company are released, the ER

team publishes reports on the company. Apart from this, any new
development in the sector or a company may require a separate
report to be published. When a new company is going to get
analyzed for the first time, the team publishes an ‘Initiating
Coverage’ report, which is much more extensive than the usual
report, as it analyzes the macroeconomic conditions, sector,
competitors, and the company itself in thorough detail.
 The hierarchy is quite flat. After spending adequate number of years

as an Associate and developing the required industry expertise, one
can become an Analyst and publish reports in his /her own name. As
this point corporate access (or networking with the top guns in
different companies) becomes more and more important.
A day in the life of an Equity Researcher (entry level):
 A typical day starts off with reading up on all the latest news on the
sector / company that the Associate is covering. The Associate then
24
reads up emails he may have received from traders or sales teams.

Also, any new market-impacting news is forwarded to the sales team
and important clients.
 Once he/she has read up well for the day, he/she may update existing
models, do more research on any one or more companies or maybe
hunt around data to initiate coverage on new companies. There may
also be administrative work to be done for the team.
 Earnings season can be quite busy and the team may occasionally
have to put in an all-nighter. Also, they have to balance out other
work during this time.
Salary and perks:
 The starting salary for Equity Research Associates in bulge bracket

banks is over INR 25L/annum. This is just the fixed pay and there is
usually a bonus.
 In Indian boutique investment banks, one may have to start a bit
lower at around INR 5-7L/annum or so and a lower bonus than the
bulge bracket firms.
 Notable International names: Goldman Sachs, JP Morgan, Morgan

Stanley, UBS, Nomura, Barclays, Deutsche Bank, Credit Suisse, Citi,
Bank of America Merrill Lynch, HSBC, Standard Chartered.
 Notable Indian names: Kotak Mahindra, ICICI Securities, Yes Bank,
Avendus, HDFC, SBI Capital, Edelweiss.
25
Further reading:
careers/equity-research/
Interview with Avinash Ghalke, who shares his experience as an

Equity Research analyst with top MNC Investment banks
I completed my PGDM in Finance from XLRI and prior to that,

graduated in Computer Science Engineering. I cleared 3 levels of CFA
(US) and earned the CFA charter in July 2010. I have worked with the
Equity Research Teams at Goldman Sachs, Lehman Brothers and
Nomura.
2. Why did you decide to pursue ER?
I was interested in equity markets and I figured out that research was the
best channel for combining my interest and skills.
3. How did you get into ER?
My journey with ER began with Goldman Sachs, which was a campus

offer. After a rigorous interview, I was selected for the Global Investment
Research Team.
4. A typical Day for an ER Associate/Analyst?
A typical day starts with checking the news flow for the companies
tracked through Bloomberg and other sources. If there is any news that
impacts the companies, it needs to be analyzed for impact on the
company financials. The Sales team is informed and important clients are
called to inform them about the likely impact of the news.
There could be some report or a periodical note that needs to be published

and work continues on that. On earnings day, things are a bit different.
When the company reports its quarterly or yearly earnings, the numbers
need to be updated in the model quickly and the first cut needs to go
across to the Sales team and traders. Forecasts are later updated based on
the actual reported earnings and the management’s commentary. An
updated note is then published based on these changed estimates.
26
5. High points in your ER career so far?
High point of my career was when we initiated a BUY report on a

company, contrary to the market opinion (most of the other Analysts had
a SELL rating on the stock). After publishing the report, we also
marketed the report to our clients. Over the next 1 week, the stock went
up 25%, implying the market believed our hypothesis for the stock.
The main challenge for an ER Analyst is getting data. In order to make

informed calls on the market, a lot of data needs to be crunched and the
quality of data available is extremely important.
With the equity markets looking up once again, there will be a

tremendous need for ER Analysts. As more investors start taking interest
in the markets, the coverage of stocks has to increase, thereby needing
more hands to take up the work.
8. Career opportunities for ER aspirants in India (and elsewhere)?
ER aspirants have options with both Buy and Sell side firms within India.
With foreign funds setting up their dedicated research desks, ER Analysts
can take up these roles as well. ER Analyst can also find fitment with
numerous Private Equity and Venture funds that need expertise in MS -
Excel model building and research.
9. Word of advice for ER aspirants?
Focus more on the role in the initial days than the money. Try to build a
good foundation in the initial days and work under a good mentor. Before
taking the plunge, make up your mind for a tough work schedule,
extending to 16-18 hours occasionally.
27
5 Financial Risk
Management
What is Financial Risk Management?
They say there is no gain without risk. In an ideal world, we would all
love to have maximum returns for zero risk. However, risk and return are
too often two sides of the same coin. Any event or situation that can
potentially cause a loss (financial/reputational etc.) to a firm is termed as
a risk. Broadly, Financial Risk can be categorized into:
1. Market Risk: This is the risk arising from exposure to the financial
markets and is linked to the uncertainties inherent in the markets.
2. Credit Risk: This is the risk arising from having lent money to a
credit-unworthy entity or not being able to recover the loan lent out
to an entity.
3. Liquidity Risk: This is the risk of not being able to meet your
funding needs, not being able to liquidate assets whenever required.
4. Operational Risk: Any sort of risk that could potentially cause a

loss to the firm but is not covered above is usually part of
Operational Risk. Having said that, Operational Risk is often linked
to the mistakes made by people, errors in systems or legal issues.
Fraud and misdemeanor also fall under this umbrella.
28
Risk Management is nothing but identifying the potential pitfalls called

risks, prioritizing them and finding solutions to minimize or completely
do away with such risks.
The global recession around 2008 showed the world how Risk
Management is an essential, important part of any ongoing business.
Many of the risks that a firm faces can be minimized or even fully
controlled by proper systems and checkpoints in place. Consequently,
several firms have their own Risk Management teams that track, estimate
and try to minimize various risks.
29
Risk Management executives are hired across several types of firms:
1. Banks and Financial Institutions: Apart from the fact that these
firms directly work with market fluctuations and manage huge
assets, they are also mandated by regulatory authorities to stay
within well-defined risk benchmarks. Hence, they need
extensive Risk Management across divisions.
2. Consultants: Firms that find it difficult to have their own in-
house Risk team often rely on consultants.
3. Large or Diversified conglomerates: Large or diversified firms
have several divisions sometimes spread over many geographies,
so it becomes essential to have a Risk team that keeps a watch
over the entire gamut of operations.
4. Risk teams of any other firm looking to minimize risks.
1. Strong analytical and quantitative skills: Risk Analysis

requires heavy quantitative skills and a lot of number crunching.
2. Knowledge of theories of risk, risk metrics: Risk terms are

quite different from regular financial parlance and requires some
knowledge and studying.
3. Attention to detail and diligence: Risk Management strives to

reduce risk. Needless to say, not being accurate would just add
to these risks!
4. Knowledge of financial markets, asset classes and

regulations: A Risk Analyst should be familiar with the
financial markets, asset classes and should keep abreast of the
latest regulatory environment.
5. Comfort with Quant models/Statistical software: Risk

analysis requires using complex quantitative models and
statistical software. Hence knowledge and comfort with these
would be an advantage.
30
How to get in:
A major chunk of Risk Management candidates are hired by Banks and

Consultancy companies
 Do an MBA in Finance or Masters in

Mathematics/Statistics/Economics and focus on subjects related to
risk in your syllabus. Take additional electives if needed.
 Try to hone your quantitative modeling and statistical skills.
 Financial Risk Manager (FRM) or Professional Risk Manager (PRM)

certifications are extremely sought after in this field.
 Quantitative Risk Modeling is an essential skill set and it would be

good to take up courses like this.
Job profile:
At the entry level, candidates join as Analysts. They typically have

MBAs in finance or are post graduates in Science, Mathematics, Statistics
or Economics
 Risk Management deals with first identifying, measuring and

prioritizing risks and then addressing or treating those risks
appropriately.
 Apart from this, the risk teams also need to come up with firm wide
policies and processes with regards to risk.
 They work closely with all divisions within the firm so that they can
identify, treat and monitor the risks at each level.
 They also need to work hand in hand with the legal and compliance
teams in a firm.
 The job requires a lot of grunge work around regulations, processes

and documentation apart from the more interesting bits of risk
analysis.
 The timings are regular usually, however if you are working in a

consultancy, then there may be some hectic times when you are on a
tight deadline project.
31
A day in the life of a Risk Manager / Risk Analyst (entry level):
 The day starts off with catching up with any news that may affect
risk metrics.
 You then work on any pending projects and perform risk analysis.
 A meeting due soon may require a report on gap areas in risk policies
that need to be filled.
 You probably need to attend meetings with other divisions to
understand their risk issues.
 Daily or weekly risk reports may need to be worked on.
 You may need to chase other teams for some of the documentation
and process notes.
32
Salary and perks:
 The starting salary for Risk Management Analysts is around INR 5-

7L/annum.
 Consultancies and MNC Investment Banks often pay higher.
 At the senior level, Risk Managers are very handsomely rewarded
based on their experience.
 Banks and Financial Institutions: All MNC as well as domestic

Banks, MNC Investment Banks.
 Consultancies: Deloitte, E&Y, KPMG, Accenture, CRISIL etc.
Further reading:
courses/financial-risk-management/
33
Interview with Mridul Sharma, who has 6+ years of experience in

Risk Management in an MNC Consulting company
I have a BE in Electronics and Communication post which I did an MBA

in Finance. I then pursued and completed FRM, PMP certifications and
have also cleared CFA L1.
into this role?
Coming from an engineering background I was always interested in the

quantitative aspect of analyses and found myself pursuing this career to
build on my strengths while keeping my interests in finance in mind. I got
through my job by applying online.
I’m currently a Risk Consultant - Delivery (multiple projects). On a

typical day, I perform regulatory requirement analysis, current Project
analysis, interact with stakeholders and vendors, identify gaps
(requirement as well as planning) and strive to close them through
stakeholders.
Several come to mind, but I felt great when the Rating Models developed
by me were adopted by an MNC as a standard offering for the region.
5. Important projects you have worked on?
I have worked on numerous projects in terms of variety and complexity.

All projects were with Corporate and Investment Banks.
Some of the challenges faced are changing regulations, inconsistent rules

across geographies (subsidiary related work), no standard processes at the
client’s end, unaccountability of ownership, duplication of work, low
budget, clashing business requirements and unreasonable delivery
expectations from business.

34
The Financial Services industry is recovering slowly. Risk is picking up

momentum through regulatory initiatives. More and more clients are
becoming aware of the benefits of doing additional or advanced risk
management work than what the regulators demand.
Consultancies and Banks are primary employers for Risk Management

talent. There is a lot of demand for people specialized in Quantitative
Risk modeling.
Focus your career towards the goal for getting into a Risk Management
profile. Choose relevant subjects during your postgraduate program.
Enroll for either FRM or PRM. Apply outside the campus as well. Keep
trying to get into a risk related project/profile even when you are not
recruited directly into a risk department and build up your risk related
skills through reading updated regulations, attending relevant seminars
and workshops.
35
6 Investment
Banking (IB)
What is Investment Banking (IB)?
Company A wants to buy another company to help grow its sales.

However, it does not know where to begin, or how much it should pay.
What does it do? It approaches an Investment Banker and asks for help in
short listing a suitable asset and arriving at an apt price.
The Investment bankers run their numbers and tell A that they should buy
B, and pay X amount for it. This is an example of ‘Mergers &
Acquisition’ advisory, one of the key areas of work of an Investment
Banker (I Banker).
In layman terms, Investment Banking is a sort of financial consultancy,

although of a very specialized type.
Investment Bankers mainly do two types of things:
1. Advise companies on mergers and acquisitions. I Bankers help

their clients to:
(a) identify potential targets

(b) provide valuations for the assets and help buy them at the best
possible price;
(c) or in the case of selling, help find a suitable buyer at a great price
2. Advise companies on raising large amounts of capital. This could

again be via two ways:
(a) raise money by issuing and selling the company’s shares. You may
have heard of IPOs (Initial Public Offerings) and FOs (Follow On
offerings. These are forms of raising money via the equity route.
36
(b) raise money by issuing debt in the form of bonds or other similar
interest bearing products.
These are the most popular functions of I Bankers. Apart from this, they
also provide corporate broking services, help their clients hedge risk with
the help of complex derivative products and serve as country, industry or
product (as in equity, debt or derivatives) experts to their clients.
At the entry level, Investment Bankers deal day in and day out with
numbers and work extremely long hours. So the key skills for an entry-
level role would be:
1. Strong analytical and reasoning skills: Most bankers have

proven academic track records. Interviews often focus on
puzzles and high school math problems.
2. Knowledge of financial statements and their analysis: Big

bulge bracket banks conduct their own training programs and
teach their incoming batches everything from scratch. However,
during lateral hiring or in case of boutique IBs that don’t have
training resources, a candidate that knows the basics of financial
analysis would definitely have an edge over others.
3. Attention to detail: A quote used often in the industry is: “if the
banker can’t even use correct punctuation, how do I trust
him/her with my money?” Senior bankers are serious nitpickers
and any entry-level banker has to be accurate to the point of
being obsessive!
4. Diligence and work ethic: The workflow is highly

unpredictable, demands accuracy each time and is always
urgent. Long hours are the norm rather than the exception. Only
the really hard working and efficient bankers can survive these
stressful conditions.
5. Multitasking: This skill is key because one would most likely

work on several projects at a time. This is especially true for
smaller banks.
6. Excellent communication skills: An I Banker must

communicate well, in both written and oral forms. As he/she
37
climbs up the ladder, communication skills and leadership

abilities take centre-stage.
This industry is not for someone who would like a predictable, regular
office routine. However, if you like challenges, nothing can beat this. The
merits of working in a fast paced industry with high profile colleagues is
the steepest learning platform you can hope for and a tremendous
adrenaline rush!
How to get in:
There are two ways of getting into IB in India for fresh graduates with no
Investment Banking experience:
1. Make it to the top tier B schools – meaning the IIMs A, B, C or ISB

or other institutes in this league. Bulge bracket IBs visit these
campuses to select analysts either for internships or directly for their
global IB program.
2. Graduate from the next tier of MBA institutes (MDI, IIFT, IIT SOMs
etc.), or complete Chartered Accountancy, or pass out of top
undergrad institutes like the IITs, Stephen’s, Xavier’s, etc.
(economics or related subjects preferred). This route could take you
to the off shored IB outfits within these big banks, which usually
feeds into their global analyst program.
The only hitch being you need to work in the off shored role for
some time before you make the cut to the front-end client-facing
role. Still, it is a great way to finally get to front end IB (More and
more banks are recruiting from undergrad colleges for these off
shored entities)
Boutique investment banks often recruit laterally based on experience and

skills. It may serve you well to know a bit of financial analytics and
modeling. A CFA would be a good qualification to have to prove your
focus and knowledge in this area. To sum up, an MBA in finance is
beneficial, but not essential.
A CFA or similar finance certification may stand in good stead. However,

an undergraduate from a top tier institute with a great resume stands as
good a chance to get a foot in the door of an IB as a post graduate.
Job profile:
38
At the entry level, candidates join as analysts. Typically they have MBAs
in finance or are CAs, some are even undergrads.
 The role of an analyst is to help the senior bankers with

presentations, financial analysis including modeling and valuation
and also other administrative items. Initially an analyst will spend
80% of his/her time doing admin items, researching data, making
pretty slides and building and maintaining databases. The exciting
work of valuations, modeling and client interactions may be limited
to only 20% of the time. This varies depending on the team (Capital
raising work is quite different from that of M&A teams), analyst
capability and of course, the market conditions.
 As they move up to be associates, they take on more responsibility.

Leadership and project management become important.
 As they move further up to become Vice Presidents (VPs / SVPs) or

Managing Directors (MDs), they become increasingly responsible
for bringing business into the firm. So slowly the focus shifts from
getting the numbers right to getting the client interested in your idea.
They have to continuously network and be close to their clients and
essentially the role becomes more aligned to ‘sales &marketing’. Of
course, this does not mean they can drop the ball on being accurate
and financially sound. Senior bankers are often on the move,
traveling to meet clients or to close deals.
A day in the life of an I Banker (entry level):
 A typical day starts off with either continuing with a project or

getting staffed on something new or both. Throughout the day, the
analyst helps senior bankers put together client presentation materials
including company and industry pages, valuation pages or just basic
research.
 Apart from client related work, there is usually some internal

database or market update that the analyst is responsible for on a
daily basis (at least in the first year). There may be several other
administrative items that need to be done (e.g. compiling client
meeting notes for the senior banker).
 If the team has a lot of deals or pitch work going on, the analyst can
expect to be very busy – maybe even put in all-nighters. However,
there can be low activity periods where the analyst has nothing much
to do and has to just wait around for work. The workflow therefore is
39
quite unproductive, both in quantity and quality. It is often a function

of what the larger team is doing and what the client requirements are.
Salary and perks:
1. Investment Banking in a bulge bracket IB is a financially rewarding

career.
(a) The starting salary for front-end analysts in bulge bracket IBs is over
INR 25L/annum. This is just the fixed pay and there is usually a
bonus that could range anywhere from 20% to 70% of the basic pay.
In great market conditions, one has even heard of fat bonuses upto
100% of the basic! Those were the glorious pre-recession days
however, and right now the market is not offering such generous
bonuses. However, things may improve as the market picks up again.
(b) As one climbs up the ladder, there are often ESOPs as well.
(c) Other perks of the job (mostly at senior levels) are meeting high
profile clients, traveling, wining and dining in style (though recent
cost cutting measures have curbed a few of these things).
2. If one joins the off shored units, they could hope to start off at a fixed
pay of around INR10L/annum with a bonus in a similar range as
above. Once they move on to the global program the salaries are on
par with front-end roles as mentioned above.
3. In Indian boutique investment banks, one may have to start a bit

lower at around INR 7L/annum or so and a lower bonus than the
bulge bracket firms.
 Notable International names: Goldman Sachs, JP Morgan, Morgan

Stanley, UBS, Nomura, Barclays, Deutsche Bank, Credit Suisse, Citi,
Bank of America Merrill Lynch, HSBC, Standard Chartered.
 Notable Indian names: Kotak Mahindra, ICICI Securities, Yes Bank,

Avendus, HDFC, SBI Capital, Edelweiss.
Further reading:
careers/investment-banking/
40
Upcoming Boutique IBs in India:
Interview with Mitesh Gandhi, Associate, Investment Banking

Division of an MNC Investment Bank
I am a commerce graduate from Narsee Monjee College of Commerce

and Economics, Mumbai and a chartered accountant from ICAI. I have
also cleared 3 levels of CFA, USA.
I started my career in the IB division of an MNC Investment Bank (off

shored entity) in 2007 in India and moved to the London front-end office
in 2010. There, I covered the European Industrials sector for 3 years and
then moved back to India in 2013 within the same company.
2. Why did you decide to pursue IB?
I was always fascinated by finance, especially the M&A side of it. Since
my college days I used to track deals through newspapers and gradually
my interest developed.
I further wanted to explore the sell side aspect of Investment Banks.

During my CA course also, I found the Financial Management module
very exciting and my interest further gained momentum.
3. How did you get into IB?
I joined as an Investment Banking analyst in the Indian off shored entity

of an MNC Investment Bank through a lateral hiring program conducted
by the bank. On joining, I supported its European Industrials team in
London. Three years down the line, I got an opportunity to move to the
front-end London office based on my performance and by way of the
company’s structured mobility program.
4. A typical day for an analyst?
An analyst plays a key role in the following activities:
 Making pitch books involving company profiles, industry analysis,

valuation work, benchmarking, peer analysis, etc.
 Conducting research and gathering reports
 Analyzing the data gathered
 Building simple to complex financial models
41
5. High points in your IB career so far?
I have been a part of several live and executed transactions. I have also
had the opportunity to present full pitch books to clients.
6. Some deals you have worked on?
I worked on a sell side for a Dutch poultry processing machinery

manufacturer. We helped a PE investor in the company to divest its stake
to a US based company for an undisclosed amount. Another deal I
worked on was the Accelerated Book Build (ABB) of a French Industrial
company.
100
80
60 East
West
40
North
20
0
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Investment banking is a very dynamic industry. Bankers constantly need

to be abreast of the latest events in their space. Banking business works
on first mover advantage. Hence, being on top of everything in their
sector is a necessity. Long and demanding working hours along with tight
deadlines is another feature and a big challenge as well.
With global markets recovering, the medium term outlook for the
industry looks very positive. This is further substantiated by recent
momentum in the M&A activity globally. The surge in ECM, DCM and
other products is definitely a healthy sign for the industry.
42
9. Career opportunities for IB aspirants in India (and elsewhere)?
As the industry is set to recover, IB job opportunities are further opening

up. The top banks are again gearing into hiring mode with their
businesses growing. I would expect the opportunities to further expand in
India and abroad as well.
10. A Word of advice for IB aspirants?
‘Passion’ and ‘motivation’ – these are the two key aspects that will take
you a long way in an investment banking career. You need both to have a
long, sustainable and successful career in banking.
43
7 Project Finance
What is Project Finance?
The government just announced a much-needed underground metro

project for a city. The estimated cost for this ambitious project is INR 30
crores. The government has approached a corporate to take up this
project.
In order to carry out this project, a special purpose vehicle (SPV) has
been formed by the corporate and the city’s development authority. 30%
of the project’s cost is to be funded by equity – most of it by the corporate
and the rest by the government. The remaining 70% will have to be
funded by debt. But who will lend to this massive project?
This is where Project Finance fills the gap. Several banks and financial
institutions have a Project Financing arm, which analyzes large
infrastructure projects like roads, highways, ports, oil and gas projects
etc. to evaluate if these are good debt investments. It then arranges debt
funding for them. Apart from this, most infrastructure players have their
own in-house Project Finance teams as well, which manage the end-to-
end financial implementation of their large projects
Project Finance firms/teams do two things primarily:
1. Advisory: The Project Finance experts run the numbers for a project
to determine cash flows, viability etc. and advice companies/govt. on
how much and what type of debt they should raise / can hope to raise
for their large projects. They also help them put together marketing
materials about the project’s profile. These materials are used to
reach out to potential lenders.
44
2. Lending: This is the procurement of the actual debt funding. Here

they collaborate with other lending institutions and get the total
amount of the debt financed (also called debt syndication). This may
be in the form of several different types of debt instruments or a
single type of instrument split between different lenders according to
their capacities and risk appetites. The Project Finance firm also
usually participates in the debt funding.
In the case of in-house teams, project management becomes an important

task as well. While Project Finance firms may advise their clients and
handhold them on this, the onus usually rests with the infrastructure firms
themselves.
The way Project Finance is different from other types of financial

institutional advisory is mainly:
1. Project Finance firms invest in at least, part of the total debt package
– it’s the firm’s own money and not its clients.
2. They finance projects and not entire companies. Therefore they

cannot rely on the parent company of the project to get back money
in case the project fails. There is higher risk associated with this kind
of funding
People generally join the industry as Associates / Executives. Key skills

for an entry-level role would be:
1. Strong analytical skills: Project Finance work entails number

crunching and hence analytical skills are required
45
2. Knowledge of Financial modeling and various valuation

methodologies: You will be required to project cash flows,
apply valuation methodologies and look at debt structures quite
extensively. Hence knowledge of financial statement analysis
and valuation is a prerequisite. You can get an advantage over
other candidates by taking up a good financial modeling course.
3. Attention to detail and diligence: Any small error made in

either the analysis or marketing material can cause problems in
front of the potential lenders. Hence, it is extremely important to
be thorough and pay very close attention to detail.
4. Knowledge about Debt instruments/Industry expertise: A big

part of the job (especially when you are working in the lending
department of the Project Finance role) will naturally revolve
around debt funding. Hence knowledge on types of debt
instruments is important. Most executives focus on a particular
industry sector, and in time are expected to be experts on
projects in their fields.
5. Communication skills: Project Finance executives are heavily

involved in preparing memoranda and other marketing materials
for projects. This calls for excellent report writing skills. Also,
as you move up the ladder, you will have to liaise with lenders
and banks etc., and here your oral skills especially those of
negotiation, will be put to the test.
How to get in:
Project Finance roles are offered by 2 types of companies: 1) Consulting

type of role offered by Financial firms 2) In-house Project Finance roles
offered by infrastructure players .
 Chartered accountants are often approached for these jobs since they
have a solid background in accounting and financial analysis.
 An MBA from a good B-school can also lead you to this role.
 If you are a graduate but do have relevant project experience in any

manufacturing (like L&T) or IT infrastructure company (like IBM),
then you may be considered for this role as well.
 Investing in a good program on financial statement analysis,

valuation, modeling or appearing for an exam like the CFA may help
46
Job profile:
At the entry level, candidates join as Associates / Executives. Typically

they have MBAs in finance or are CAs. Some are even graduates with
prior experience working in projects.
 Most Project Finance firms have teams divided by industry expertise.

In-house teams work on their company’s projects which are usually
in one particular sector (unless it’s a diversified conglomerate – then
there are different teams within).
 Executives have to examine if a project is viable. For this they use
financial analysis and do thorough research on the project. They run
several “what-if” or scenario analyses on the project to understand
the risks.
 Once a project is deemed viable, the work of getting it funded starts.
Marketing materials are then put together and lenders are
approached. The firm often commits its own money to the project
and needs to get internal approvals for the project.
 Since the projects are usually long drawn and extend over several
years, managing the project requires daily/weekly reporting, handling
compliance and legal issues, accounting, fund management and
general project planning on an ongoing basis.
A day in the life of a Project Finance executive (entry level):
 There is no typical routine in the role. It all depends on what the

current status of the project is.
 The junior executive is involved in putting together materials that
explain the project (detailed project profile). Once created it may be
updated from time to time for each project. Apart from this, project
related number crunching like forecasting cash flows, valuing them
and analyzing several scenarios is also a part of his/her job.
 If the team is also handling the day-to-day management of the
project, then the executive needs to make status reports, handle
accounting, manage funds, resolve legal and compliance issues, etc.
 In the lending part of the role, the executives help in contacting
potential lenders, while senior executives end up finalizing the deals.
47
Salary and perks:
 The starting salary for Project Finance associates in large consulting

firms starts around INR 10-12L/annum. Bonuses may be available
depending on the company and project, but are not the norm.
 Candidates joining infrastructure players with in-house teams start
off at around INR 7-8L/annum.
 Consultant companies: IL&FS, IDFC, E&Y, KPMG, PwC.

 Infrastructure players: L&T, GMR, Reliance Group, DLF, IBM, HP.
Further reading:
careers/project-finance/
48
Interview with Gautam Bothra, who has a rich experience in Project

Finance as part of the in-house team of an MNC IT infrastructure
company
I pursued my CA, CS and CWA along with my graduation, while

managing my articleship, followed by industrial training. Post my
qualifications, I joined my firm and during my job, I also pursued CIMA.
into this role?
Coming from a business family, I always understood the importance of

finance and had a knack for it. So when the time came to make a
decision, it was a natural call for me. I was always good with numbers so
that was a plus. Post qualification, I was interested in core finance and as
the role being offered to me was in Project Finance, I took up the
opportunity. Even in my articleship days, I had worked on a number of
assignments involving Greenfield projects. Together with my academic
training, this suited the requirements of the job well.
3. A typical Day for a Project Finance executive?
The role involves the end-to-end financial implementation of different

projects that the firm undertakes. So the role requires everything from the
initial stage of planning cash flows, to project planning and analysis,
project funding, fund management, compliance as well as accounting for
reporting purposes. Reporting the project status to various stakeholders
also forms a part of the role.
My typical day starts at 9 AM where I first check my emails to see if any

urgent tasks require immediate attention. Aside from some time bound
deliverables like reporting to the management and preparing timely status
reports, it is more of an unstructured day where things are managed as
and when they arise.
Besides availing several qualifications in a short span of time, I find

immense satisfaction in being an outstanding performer in my current
role. To top things, the satisfaction of imparting my knowledge to my
fellow aspirants is another high point in my career.
49
5. Deals / projects you have worked on?
I have worked for greenfield projects (Hospitality projects), IT

infrastructure and software projects for banking and financial institutes.
One of the biggest challenges in a finance role is to help the business

remain viable. Ensuring that the costs do not exceed the budget, while at
the same time understanding that quality cannot be compromised is
another challenge in my day-to-day activities. It is imperative to
understand the needs of various stakeholders and manage their
requirements without compromising on the business side of business.
The recession of 2008 did not impact our business much since the IT
infrastructure gap in India is huge. Having said that, we still had to take a
bit of a hit in our margins due to cost cutting across industries. The recent
elections have put up a stable government, improving the overall industry
sentiment. Our current Prime Minister is a great champion of IT which
has brought good news for us too and we expect to see a lot of spending
in improving and installing IT infrastructure in both public and private
sectors.
With increasing complexities of business and globalization, standards are

being changed at a pace faster than we can imagine. This throws up a lot
of opportunities in various segments of finance. I believe the industry at
this point, has more demand than supply.
I feel that an aspirant in finance should lay a lot of emphasis on

conceptual understanding over rote learning. It is also important to
simultaneously work on soft skills and communications. This would go a
long way in building a robust career in finance. All the best.
50
Wealth
8 Management
What is Wealth Management?
Mr. Moneybag is the head of a large conglomerate. His spouse and

sibling are partners in the business. As a business family, the Moneybags
have multiple concerns related to their money. They have a combined
asset base of close to INR 100 crores. They have businesses in India as
well as Europe. This leads to different currency revenues as well as
different taxation policies. They want to make their money grow while
protecting the principal. They want to create a trust fund for their future
generation. They also want to minimize their tax outflow. They would
also like to know if there are any interesting avenues for them to invest
in. The family is too busy handling its business concerns and needs
external help to manage their money matters. This is where Wealth
Managers come in.
Wealth Managers are typically financial advisors who help their clients
achieve their financial goals. The clients are usually high net worth (HNI
– investible surplus greater than INR 5 crores) or ultra-high net worth
individuals/families (UHNI - investible surplus greater than INR 25
crores). Wealth Managers help their clients safeguard their wealth, plan
retirement and other financial goals (like a foreign education for their
kids), help with taxation issues, create legal entities like trust funds
(estate planning) as well as multiply their money by suggesting
appropriate investment options. They usually charge a fee and / or a
commission for their services. Thus, the focus is not just on advising
where to invest – rather it is holistic approach aimed at marrying the
clients’ financial goals with their likes, dislikes and risk appetites.
51
Within wealth management, one could opt for two types of finance
related jobs:
1. Relationship Manager (RM) – This entails direct interaction with

clients, solving their issues and advising them.
2. Product Management – Here there is no direct client interaction,
however, the product managers devise and maintain investment
products for the firm’s clients.
In smaller firms, the above roles are often merged.
1. Confidence and excellent communication skills: A bulk of wealth

management roles is of the relationship management type. Here, a
confident persona and the ability to carry out meaningful
conversations with UHNI and HNI clients is a top required skill. The
RM must be able to understand client requirements and also be able
to put forth his /her suggestions to the client effortlessly.
52
2. Knowledge of investment products: UHNI and HNI clients have a

lot of money waiting to be invested in a plethora of different
products. It is essential that the RM or product manager is well
versed with different types of products and is able to suggest these
and even generate new ideas.
3. Spotting investment opportunities: Market awareness is highly

essential. A Wealth Manager needs to be on top of what is ‘hot’ in
the market and see if it makes sense for the client to invest / sell.
Mistakes made while suggesting appropriate investments can cost the
employee the client, his/her job or his/her reputation.
4. Proactive nature: Wealth Managers have to be proactive and

assertive. A shy Wealth Manager or one who is simply reactive earns
no respect from the clients.
5. Problem solving: Clients call up the RM from time to time to

discuss problems / issues. The RM must be a great problem solver
with good turnaround time.
6. High level of integrity: Since Wealth Managers are privy to details

of the assets of their clients; they have to be high on integrity or risk
losing face for themselves and their firm.
How to get in:
Wealth management in India is still at a nascent stage, as a lot of Indians

still don’t believe in paying someone to manage their own money.
However rising affluence, evolving financial products and changing
attitudes are making this a sunrise sector.
 MBA graduates are often sought after for these roles since they have
a good understanding of financial markets and products.
 CAs as well as graduates in the economics of business administration
fields would also find a good fit.
 A Chartered Financial Analyst (CFA) or Certified Financial Planner
(CFP) certification is very sought after and signals your interest in
this vocation.
53
Job profile:
 For RMs, the majority of time is spent with clients, either on the
phone, email or personal visits. Companies often give their RMs
targets to achieve. They also need to sit down with the Product team
from time to time to understand the latest offerings of the firms.
Apart from this, they have to read up constantly on the market and be
up to date on financial happenings.
 For Products Managers, the majority of time is spent in devising new

product strategies, executing them as well as reviewing existing
product lines. They also attend several internal meetings, and have to
relay the product strategies to the RMs.
 A wealth manager’s job can be stressful considering he/she is

responsible for a large amount of money and assets. Any small
mistake and there can be grave consequences. Constant interaction
with high profile clients, although very rewarding, can be mentally
exhausting at times.
A day in the life of a Wealth Manager (entry level):
 Wealth mangers typically start off the day checking for any emails or
phone calls that need to be made to clients/internal teams.
 They often have meetings lined up and may have to step out of the
office to meet new clients/address any bigger issue with existing
clients.
 There is a lot of paperwork to be done usually pertaining to the

transactions of clients, hence a lot of time is actually spent at the
desk.
 Internal meetings also take up a lot of time.
 Spare time if any, is often spent in trying to catch up with financial

markets and other news.
54
55
Salary and perks:
 The starting salary for Relationship Managers and Product Managers

in the Wealth Management divisions of large banks could be
anywhere from INR 8L onwards. (These are usually candidates from
top notch B-schools). Commissions are paid on top of this, which are
as per the performance of the employee.
 Smaller banks and financial institutions typically pay around INR 5-
6L at the start. They often source from undergraduate programs.
 Most banks have their own Wealth Management divisions:

 Kotak Wealth Management, HSBC Wealth Management, ICICI
Wealth Management, Citigold etc.
 Financial Institutions:
 Aditya Birla Money, Karvy Private Wealth, Motilal Oswal
Wealth Management etc.
Further reading:
careers/wealth-management/
56
Qualifications
for Finance
Professionals
57
Chartered
1 Accountancy (CA)
Chartered Accountancy is offered by the ‘Institute of Chartered

Accountants of India’ (ICAI). Chartered Accountancy has always been a
very sought after professional qualification. The moment you say you are
a qualified CA, people judge you as someone bright, diligent and
knowledgeable.
It is a rigorous course in the field of Accounting and Finance, which

opens the doors to various career options in the financial domain. CAs are
sought after by almost every business house for corporate finance,
auditing, taxation, accounting, and legal counsel. Apart from this, since
the course is challenging and demanding, a CA is considered to be a
diligent person with an analytical bent of mind and penchant for numbers.
Several banks and financial services firms look for CAs to fill their
various financial analysis roles. CAs can also start their own practice
soon after qualifying.
To apply for the course, the steps are as follows:
1. The first step is to clear the Common Proficiency Test (CPT). You
can register for this with ICAI post your 10 th Std. However, you are
only eligible to write the exams once you clear your 12 th Std. or
HSC.
a. The CPT is exempt if you are already a commerce graduate with
> 55% marks.
b. It is also exempt for non-commerce graduates with > 60%
marks.
58
2. The next step is to enroll for the Integrated Professional Competency

Course (IPCC).
a. Students need to undergo an orientation program, 100 hours of

Information technology training and 8 months of studying
(called foundation course)
b. Students can then appear for Group 1 and/or Group 2
examinations of the IPCC
c. They also need to complete General Management and
Communication Skills course – Part 1
d. Once they clear Group 1 exams, they are eligible for a 3 year
articleship with a firm
3. The last step after clearing IPCC is the final CA exams
a. The exam can be attempted when 6 months of articleship are

remaining
b. Students also need to complete Advance Information
Technology Training and General Management and
Communication Skills – Part II, if not completed earlier, before
the final exam
This course is largely done by correspondence and self study with help
from coaching institutes. One can do the foundation course and IPCC
exams simultaneously while pursuing another graduate degree. However,
articleships are usually very taxing and are taken up as full time jobs by
students. On clearing the final CA exams and getting the CA designation,
candidates are usually promoted within the firms in which they articled or
take up plum offers from other firms
Who should do a CA?
The CA course is no cakewalk. It requires rigorous studying, a very

challenging articleship period of around 3-3.5 years as well as tough-to-
pass exams. You should take this qualification up only if you are
reasonably sure about your abilities to devote the time and efforts
required for the course. Career wise, it makes sense to do this course if:
1. You are interested in pursuing a career in

auditing/taxation/accounting
CAs by definition, take care of a company’s accounts, taxation, legal
issues and also conduct audits. If this is something that appeals to you,
you have to look no further.
59
2. You are interested in pursuing a career in corporate finance
Corporate finance entails managing a company’s finances, funding,

project finance, treasury etc. This is a challenging and engaging job and
in India, these jobs almost always go to CAs.
3. You are interested in pursuing a career in the financial domain,

but don’t know which one yet
You love accounting and finance but you are not very sure which field
within finance you want to take up. CA is a very safe bet provided you
have the grit to go through with the course.
4. You want to start your own practice
If you want to start your own CA practice, needless to say, this is the
course you need.
Skills required:
1. Discipline, Diligence and hard work:
The syllabus is vast and sometimes crushing. There is a lot of midnight

oil to be burnt and social life may come to a standstill. The exams are
supposed to be tough with very low passing rates. Additionally,
articleships are quite infamous for being 12-14 hour jobs with peanuts for
pay. This means you have to have the patience and perseverance to
survive the coursework, exams as well as articleship work. Hard work
will be the usual order of the day.
2. Conceptual understanding:
A lot of students try to cram up and become a CA. However, in the

industry only the conceptually sound will truly make progress. For this,
you have to understand the concepts instead of just mechanically
mugging up methodologies.
3. A head for numbers:
Numbers will be your best friends. Accuracy and speed in general

mathematics helps hugely.
60
Career opportunities after CA:
Practically, no door in the financial domain is closed to a CA. Jobs that

CAs typically take up are:
 Regular CA jobs in all types of businesses

 Corporate Finance roles in all types of firms
 Accounting, taxation, financial analysis or auditing roles in
consulting firms
 Financial analysis in M&A or Capital Markets divisions of
Investment Banks
 Credit Rating
 Project Finance
 Training
 Investment Management roles in Mutual Funds and other AMCs
 Courts
 Civil Services
 All govt. PSUs
 Self Practice
Further Reading:
http://www.proschoolonline.com/blog/category/explore-courses/ca/
Interview with Mitesh Gandhi, who is a CA and is working with an

Investment Bank
1. Why did you take up CA?
Introduction to Accounting in the first year of B.Com was the stepping-

stone for my career advancement in the CA course. My interest in
accounting and then finance made my decision very easy and the CA
course was my first choice.
One of the other reasons for taking up this course was to face the
challenges that it promised. It is described as of the most challenging
courses and I have always loved to face challenges. CA offers various
career options ranging from practicing to becoming the CFO of a
company. It is of course one of the most respected degrees in India and is
considered a ‘Noble profession’.
61
2. How tough is it? How many hours of study are required?
As a course, it is quite demanding and requires a lot of commitment and

dedication from a candidate. It is very intense and throws the challenge of
managing studies with work (articleship). I would say it requires 12+
hours of studies as you move closer to the exam dates.
3. What was your study plan?
My strategy remained the same across all the 3 levels. I played to my

strengths and tried my best to upscale my game in the other subjects. I
always had a timetable for my study plan wherein I allocated time and
number of days for each subject. It was made in such a way that I had
enough time for revising all the subjects.
Always remember, CA course is very vast. So I factored in a good

amount of time for revision as well. Going through past papers is very
helpful in getting yourself familiarized with the trend and pattern in
which questions are framed. So, I solved papers as soon I completed
reading the relevant subjects.
4. Challenges you faced?
Managing time was the biggest challenge I faced both prior to the exams
and during the exams. During the exams it becomes all the more
important because at times the paper can be tough or lengthy or both.
Articleship is a very interesting 3-year stint that the CA course offers.

During the articleship, a lot of challenging situations came my way
because firstly, that was my first ever exposure to the corporate world and
secondly, a practical approach to the profession was something very
interesting and different from the academic setup that I was used to.
5. How has it helped you?
My accounting and finance fundamentals are very strong thanks to a

structured approach of learning these concepts through the course. I have
a fair idea of all the taxation rules and policies across the country. Most
importantly, it has helped me live my dream of becoming an ‘Investment
Banker’.
62
Chartered
2 Financial
Analyst® (CFA)
Introduction to the Chartered Financial Analyst® (CFA) program:
The CFA program is conducted by the CFA Institute, USA. The CFA is
an internationally recognized, well-researched and wholesome financial
program that aims to give the examinees an all-round knowledge of
financial analysis and portfolio management. This is a highly sought after
certification and is quite well known across the financial industry
internationally.
The CFA syllabus comprises 10 key topics relevant to financial and

investment analysis. The certification calls for successfully clearing 3
parts – Levels 1, 2 & 3 over a few years’ time. On clearing all three levels
and having completed 48 months of relevant work experience, one can
avail of a CFA Charter from the Institute and append the much-coveted
‘CFA’ designation to their names.
Charter holders are members of the CFA Institute and have access to
several resources that the Institute has to offer including business forums
and events, journals, databases, career resources and the chance to
network with big names across the global financial industry. A candidate
who has cleared all the 3 levels is viewed as someone proficient in
financial topics and the effort is a major signaling factor to companies
about his/her interest and capabilities in finance.
63
Who should do a CFA?
The CFA program is world class, however it is a tad expensive (please

see the fees below) and not everyone maybe able to afford the fees. If you
are reasonably sure of pursuing a career in finance, and also have a fair
idea of your own abilities to crack the exam, you should give this
program a try. If you are unsure, you could take up CFA coaching / mock
exams being offered by several training institutes to judge if the exam is
something you will be able to crack and if the subject matter makes sense
for your general situation.
A CFA is apt for you if:
1. You are a student and want to strengthen your resume for a

career in the financial domain
As mentioned above, pursuing CFA has a strong signaling ability. A

candidate who has cleared one or more levels of CFA is seen as more
focused and proficient in finance as compared to others. Several students
take up this program simultaneously with their regular degrees.
2. You want to switch to the financial domain from any other

domain
If you graduated in a technology or non-financial field, this certification

will give you a foot in the door to various opportunities in the financial
domain, without having to do any conventional academic degree in
finance.
3. You want to deepen your knowledge in finance
If you are aiming to work in the financial industry or are already working
in it, you can pursue this certification to deepen your knowledge and give
your career a boost.
4. You want to move to Investment Analysis, Equity Research,

Portfolio Management or related roles
If you want to work in the fields mentioned above, CFA will very often
be a required certification rather than just a desired one. Employers in
these fields often fund the exam fees to encourage employees.
64
Skills required:
1. Above average grasping power:
The syllabus is vast and requires a lot of practice. It helps if the candidate
is a fast reader and has a good grasping ability.
2. Quantitative and analytical ability:
CFA is of course in the end a finance course, so a head for numbers and
analytical ability is essential.
3. Multi-tasking:
Most candidates complete this course along with other studies or while
doing a full time job, so they must be able to multi-task and find time for
exam preparation.
4. English language skills:
A good command over English will definitely help while answering

questions (especially sections like Ethics and essay questions in L3). The
syllabus is vast and can be overwhelming at times. A lot of candidates
have benefitted from enrolling in coaching institutes to help them
understand tough concepts, manage their study time and practice mock
tests. Having regular discussions with a peer group also greatly helps in
understanding complex topics.
Career opportunities after CFA:
Candidates who have cleared one or more levels of CFA are hired across
several types of firms:
 Investment Management / Wealth Management firms / Portfolio

Management firms
 Investment Banking
 Equity Research
 Private Equity
 Credit Rating / Analysis
 Corporate Finance Divisions
65
Details of the program:
Subjects:
 The subjects are:

 Ethical and Professional Standards
 Quantitative Methods (only L1 and L2)
 Economics
 Financial Reporting and Analysis (only L1 and L2)
 Corporate Finance (only L1 and L2)
 Equity Investments
 Fixed Income
 Derivatives
 Alternative Investments
 Portfolio Management and Wealth Planning
 Level 1: Focuses on basic concepts in finance. Highest weightage on

Ethical and Professional Standards and Financial Reporting and
Analysis.
 Level 2: More complex type of analysis, focusing on valuation of
different types of assets. Highest weightage on Financial Reporting
and Analysis and Equity Investments.
 Level 3: Highest weightage on Portfolio Management and Wealth
Planning.
Exam format:
 Level 1: All multiple choice questions where you have to choose one
out of three.
 Level 2: All questions are again multiple choice but they now appear
in item sets (usually 6 questions for one item set) instead of singly.
 Level 3: Item sets and Essay questions. Essay questions should not
really be answered by ‘essays’, rather they should be 4-5 sentence
subjective answers like the type we answered while we were in
school.
Exam difficulty level: Generally, the CFA exam is seen as a tough exam
and the passing percentage is usually around 40%.
 Of the 3 levels, level 1 is usually seen as the easiest and level 2 the
toughest.
 Candidates not making the mark can retake the test in the next
season.
66
Registration body
 The CFA Institute https://www.cfainstitute.org/
Fees (do confirm with the CFA Institute website for the latest fee):
 One-time enrollment fee: ~$450 (only at the time of Level 1)

 Level 1, 2 and 3 registration: $600- $1200 per level (depending on if
you register early or late)
Exam dates:
 Level 1: Generally conducted twice a year on the 1 st Sunday in June

and December
 Level 2 & 3: Generally conducted once a year on the 1st Sunday in
June
Exam Duration: All levels are 6 hours long, split into 2 three-hour
sessions each
 Morning session: 9:00am – 12:00pm (Candidates are required to be

in the classroom by 8:30am)
 Afternoon session: 2:00pm – 5:00pm (Candidates are required to be
in the classroom by 1:30pm)
Materials to bring to exam:
 Admission ticket
 HB pencils (or #2 pencils) and pens
 Eraser
 Calculator – only 2 types are allowed:
 Texas Instruments BA II Plus (including BA II Plus
Professional)
 Hewlett Packard 12C (including the HP 12C Platinum, 12C
Platinum 25th anniversary edition, 12C 30th anniversary edition,
and HP 12C Prestige)
 Valid Passport (required item, so do get one if you don’t have one
yet)
 Do make sure the name you have on your passport matches
exactly with the name on your CFA admission ticket
 No type of paper or parchment is allowed inside (even as mundane as
the paper lining the base of your pencil box or eraser cover)
 Smart phones or smart watches are not allowed
 Food and drinks are not allowed
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Further Reading:
http://www.proschoolonline.com/blog/category/explore-courses/cfa-
course/
Interview with Avinash Ghalke, CFA (Equity Research analyst

turned entrepreneur), who shares his experience of the CFA exam
1. Why did you take up CFA?
This course was more focused on the financial analyst profile. My

employer also encouraged me to take up this certification by sponsoring
the course (only if I cleared it at first attempt).
For a fresher, the initial coursework looks tough. But for an experienced
analyst, things are a bit easy since they can relate to the topics at work.
I chose a 1-2 hour daily study schedule for a 3-4 month period. However
some people prefer a rigorous 14 hr – 2 week schedule just before the
exam.
4. Challenges you faced
While studying, many a times you are stuck at some conceptual points
that you are unable to understand. In such a case it helps to have a peer
group who can help you with such difficulties.
The 3 levels of curriculum are rigorous and take you through different
aspects of financial analysis. So from a personal development point of
view the course is quite essential and exceedingly helpful. Also a CFA
Charter is a feather in the cap.
68
Certified
Management
3 Accountant
(CMA)
Introduction to the Certified Management Accountant (CMA)
certification:
A Cost Management Accountant is expected to collect, assimilate, collate

and analyze financial information from all areas of the organization. A
cost accounting degree equips you with the knowledge on how to manage
finance competently. Institute of Cost Accountants of India
(ICAI) [Previously known as the Institute of Cost & Works Accountants

of India (ICWAI)] promotes, regulates, and develops the profession of
Cost & Management Accountancy in India. To apply for the course, the
steps are as follows:
There are 3 Levels:
 Foundation, Intermediate and Final examinations and three

years of practical training.
 Eligibility for admission to "foundation" level: Passed Class 10
or equivalent from recognized board or institution.
69
 Eligibility for admission to "intermediate" level: Passed Senior

Secondary School Examination (10+2) & Foundation Course of
CMA (ICAI) / Graduation in any discipline other than Fine Arts/
Foundation (Entry Level) Part I Examination of CAT of the
Institute/ Foundation (Entry Level) Part I Examination and
Competency Level Part II Examination of CAT of the Institute
OR
 Passed Foundation of ICSI /Intermediate of along with 10+ 2.
Exams are held twice a year - June & December
 Every student having registered under Revised Syllabus

2008/Syllabus 2012, shall be required to undergo practical
training for a period of 3 years on whole time basis to the
satisfaction of council.
Who should do a CMA?
The CMA course is no cakewalk. It requires rigorous studying, a very

challenging articleship period of around 3years as well as tough-to-pass
exams. You should take this qualification up only if you are reasonably
sure about your abilities to devote the time and efforts required for the
course. Career wise, it makes sense to do this course if:
1. You are interested in pursuing a career in cost

auditing/taxation/assurance
CMAs by definition take care of a company’s cost accounts, taxation,

legal issues and also conduct audits. If this is something that appeals to
you, you have to look no further.
2. You are interested in pursuing a career in Resources &

Performance Management
If you are interested in comparing Financial performances, making

assessment & projections. This is a challenging and engaging job and
almost always goes to CMAs.
3. You are interested in pursuing a career in the financial domain, but

don’t know which one yet.
70
You love accounting and finance but you are not very sure which field
within finance you want to take up. CMA is a very safe bet provided you
have the grit to go through with the course.
4. You want to start your own practice
If you want to start your own CMA practice, needless to say, this is the
course you need.
Role of CMA
1. Improving Cost Competitiveness.
2. Resource & Performance Management.
3. Financial Reporting & Strategy.
4. Cost Audit & Assurance.
5. Direct & Indirect Taxation.
6. Internal Audit & Management Audit.
Skills required:
1. Discipline, Diligence and hard work:
The syllabus is vast and sometimes crushing. There is a lot of midnight

oil to be burnt and social life may come to a standstill. The exams are
supposed to be tough with very low passing rates. Additionally,
articleships are quite infamous for being 12-14 hour jobs with peanuts for
pay. This means you have to have the patience and perseverance to
survive the coursework, exams as well as articleship work. Hard work
will be the usual order of the day.
2. Conceptual understanding:
A lot of students try to cram up and become a CA. However, in the

industry only the conceptually sound will truly make progress. For this,
you have to understand the concepts instead of just mechanically
mugging up methodologies.
3. A head for numbers:
Numbers will be your best friends. Accuracy and speed in general

mathematics helps hugely.
Career opportunities after CMA:

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Job Opportunities Members of ICWAI are being absorbed as Chairman,

Managing Director, Finance Director, Chief Executive, General Manager,
Finance Manager, etc. in many Public and Private sectors organizations
and also in the Government departments.
There is an existing Cost Accounting Service in Central Govt. named as
Indian Cost Accounts Service, which is at par with the Class I Services of
the Government of India.
Independent Practice
Cost Accountants can practice in the following areas:
• In mandatory Cost Audit under Section 233 (B) of the Companies Act,
1956.
• Certification under Export & Import Policy.
• Excise Audit under Section 14A of the Central Excise Act and Special
Audit of Certification Of manufacturing account as per Customs Act.
• Consultancy Assignments.
Academic Opportunities
Further Academic pursuits:
 Recognised by the Academic Councils of many Universities in
India for the purpose of admission of the Ph.D. courses in
Commerce. It was resolved by Association of Indian
Universities to accept Bachelor Degree-holders who have
ICWAI Qualification for registration as M.Phil. and Ph.D.
candidates in commerce and allied disciplines.
Syllabus of CMA
Foundation Course
Paper 1: Fundamentals of Economics and Management
Paper 2: Fundamentals of Accounting
Paper 3: Fundamentals of Laws and Ethics
Paper4: Fundamentals of Business Mathematics and
Statistics
Intermediate course
Summary of the Course: GROUP – I GROUP – II
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Paper 5 : Financial Accounting Paper 9 : Operations Management

and Information System
Paper 6 : Laws, Ethics and Paper 10 : Cost & Management
Governance Accountancy
Paper 7 : Direct Taxation Paper 11 : Indirect Taxation
Cannons of taxations
Paper 8 : Cost Accounting and Paper 12 : Company Accounts and
Financial Management Audit
Final Course: Syllabus

Paper 13 : Corporate Laws and Compliance
Paper 14: Advanced Financial Management
Paper 15 : Business Strategy & Strategic Cost
Management
Paper 16 : Tax Management & Practice
Paper 17 : Strategic Performance Management
Paper 18 : Corporate Financial Reporting
Paper 19 : Cost and Management
Paper 20 : Financial Analysis & Business
Valuation
Interview with Harshad S Deshpande, who is a CMA and has his own
firm. He is also the General secretariat of CMA Pune Chapter.
1. Why did you take up CMA?
My interest in accounting and then finance made my decision very easy

One of the other reasons for taking up this course was financial planning,
analysis, control, decision support, professional ethics and good amount
of demand made CMA as preferred choice .
As a course, it is quite demanding and requires a lot of commitment and

dedication from a candidate. It is very intense and throws the challenge of
managing studies with work (articleship). I would say it requires 7+ hours
of studies as you move closer to the exam dates
I always had a timetable for my study plan wherein I allocated time and
number of days for each subject. It was made in such a way that I had
73
enough time for revising all the subjects. All I did intensive reading of
book in detail summarizing the topics, and preparing notes.
Always remember, CMA course is very vast. So it required a good

amount of time for revision as well.
As I was working while during my CMA studies so I didn’t face as such

any challenge because of my practical knowledge and merely
theoretically knowledge will not work you need to know practical aspect
too.
It has really helped me because of CMA I have conducted Management

Accountancy of 13 firms and has broadly seen different fields of finance
like Merger And Acquisition, setting of Strategy, cost control and
auditing.
74
Certified
4 Financial
PlannerCM (CFP)
Introduction to the Chartered Financial PlannerCM (CFP)
certification:
The CFP certification is conducted by the Financial Planning Standards

Board (FPSB Ltd.), based in the U.S. FPSB India is its Indian counterpart
that manages and conducts the program in India. The CFP is recognized
in over 24 countries and is one of the best-known certifications in the
financial planning domain. It focuses on a variety of topics along the
personal finance angle such as the time value of money, risk and
insurance planning, retirement planning, estate planning, taxation
planning, etc. So, if you are interested in the area of personal finance or
investment planning, then this is the right certification for you.
There are two ways of doing this certification:
1. The Regular Program in which the syllabus is spread over 5 exams
a. Eligibility is open for anyone who has cleared Std. 12 th / HSC

b. Work experience is not mandatory to apply
c. You can choose to register via self study or by choosing an
Education Partner (these are institutes that are approved by the
FPSB to conduct CFP training, visit their website for more
information)
75
2. The Challenge Status Program which has just one exam that covers
the entire syllabus. To be able to apply under this program you have
to meet certain criteria:
a. You should have a post graduate degree / CA / MBA or CFA or

other degrees as mentioned here
b. You also need work experience of 3-5 years before applying for
this program
Once you clear the exams, you can sign the Code of Ethics, be a certified
CFP and use the trademark CFP Marks.
If you take up the Regular Program, to use the CFP Marks (the
trademarks), you have to acquire work experience of 3-5 years
(depending on whether you are a graduate or not). Once you are certified,
you join the ranks of other CFP professionals, forming an elite network of
qualified financial planners.
Who should do a CFP?
A CFP is apt for you if:
1. You are interested in pursuing financial planning as a career
If you are sure about pursuing this as a career, then there should be no
looking back. Doing this program will give you the necessary knowledge
as well as give you the visibility when it comes to recruitment. Even if
you are working in some other financial field, doing a CFP can open
doors to financial planning firms
2. Your work needs you to know various investment instruments,

taxation etc. in the Indian context
If you are an RM for a bank/investment management firm then

understanding regulations, taxation issues and general financial
instruments and investment planning is vital. This knowledge can be a
great tool in your repertoire and help you come across as knowledgeable
and boost your clients’ confidence.
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3. You want to understand personal finance and investment

planning for your own needs
If you want to make your money grow, don’t want to rely on others for it
and have the needed time for this effort, then understanding the nitty-
gritties of financial planning can give you the firepower you need!
Skills required:
1. Good grasping power:
2. Quantitative ability:
CFP syllabus is very numerically strong and can sometimes be tedious

with its long calculations. Strong quant skills are beneficial.
3. Multi-tasking:
exam preparation.
4. Diligence and Discipline:
The program is spread over 5 exams (for regular format) and hence
requires regularity and diligence on the part of the candidate to keep up
the momentum. The onus of scheduling the exam lies on the student, so
the more diligent you are, the faster you can finish the program.
A lot of candidates have benefitted from enrolling in coaching institutes

to help them understand tough concepts, manage their study time and
practice mock tests. Having regular discussions with a peer group also
greatly helps in understanding complex topics.
77
Career opportunities after CFP:
CFP is a premier certification in the world of financial planning and CFP

holders are hired across various firms for their expertise in investment
planning:
 Banks
 Financial Planning firms
 Asset Management companies
 Brokerages
 Insurance firms
 Distribution houses
Subjects:
 The subjects are split into 6 modules:
 Module I - Introduction to Financial Planning

 Module II - Risk Analysis & Insurance Planning
 Module III - Retirement Planning & Employee Benefits
 Module IV - Investment Planning
 Module V - Tax Planning & Estate Planning
 Module VI - Advanced Financial Planning
Exam format:
1. The exams are conducted using computers and not pen and paper.
2. Regular Program:
 Exams 1-4
 Each exam is 2 hours each
 Each exam focuses on one of the modules from Module II
to V and additionally also has 20% of the questions from
Module I. Example: Exam 1 will have 80% questions from
Module II and 20% from Module I; Exam 2 will have 80%
questions from Module II and 20% from Module I and so on
 All multiple choice questions where you have to choose one
out of four, no penalty
 Exam 5
 4 hour long exam
 Based on Modules I to VI
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 Case based multiple choice questions, no penalty
3. Challenge Status Program:

 Same as exam 5 above
Registration body: The CFP Board
1. Regular Program:
 Registration fees: Rs. 11,236
 Exams 1- 4: Rs. 2,247.2 per exam per attempt
 Exam 5: Rs. 5,618 per attempt
 After clearing, CFPCM Certification Fees: Rs. 5,618 (to be
renewed annually)
 The above fees are for the Self-study mode without study
material. Additional amount may need to be paid to procure
study material and in case of applying through an Education
partner.
2. Challenge Status Program:

 Registration, Admin and processing fees (FPSB) is Rs. 19,101 or
if using Education Partner then Registration, Admin and
processing fees is Rs. 16,854
 Study Material: Rs. 4,500
Exam dates:
1. The exams can be scheduled based on the candidate’s convenience

subject to availability.
2. Exams are conducted every day except Sunday.
1. Admission ticket
2. Calculator
3. Smartphone’s or smart watches are not allowed
Further Reading:
courses/certified-financial-planner-course/
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Interview with Abhishek Somani, CFP, who shares his experience of

the CFP exam
1. Why did you take up CFP?
In 2006, I was working with Max New York Life Insurance. Before that,
I had worked for ICICI Prudential Life Insurance. I wanted to broaden
my career opportunities to all sub - verticals in the BFSI sector with a
final goal of entrepreneurship. CFP was a great fit for both these
objectives. I got a thorough understanding of all aspects of personal
finance during the course.
2. How tough is it? How many hours of study are required? What
was your study plan?
2 hours per day of dedicated studies for 6 to 8 months is required to clear

the exam. Please note that studying for 12 hours in 1 day and doing
nothing for next 5 days does not work. Regular practice is very important.
The course is not tough for anyone who commits to regular practice.
3. Challenges you faced
Not many coaching options were available that time.
CFP is useful across the financial services sector and also helped in
starting off my own advisory services. Today I am teaching as well as
doing Financial Planning. So, it has had a big impact on my career.
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Financial Risk
5 Manager®(FRM)
Introduction to the Financial Risk Manager® (FRM) program:
Financial Risk is a broad term that comprises various types of risks that
could cause financial loss(es) to a business. Some of the risks firms face
are, Interest Rate Risk, Credit Risk, Liquidity Risk, Operational Risk etc.
Financial Risk Management therefore requires very specialized type of
knowledge.
The Financial Risk Manager (FRM) program conducted by The Global

Association of Risk Professionals (GARP) program aims to provide a
holistic education in Financial Risk Management and is an ideal program
for candidates aspiring to top Financial Risk Management profiles across
firms.
GARP is a non-profit organization that is involved in creating risk related

awareness and providing quality training in the field of Risk
Management. Globally, the FRM designation is one of the best known
and respected designations in the Risk Management area.
If you are interested in this field, FRM is the certification to do. The FRM
program is good to have even if you are working in other fields like
Corporate Finance, Investment Management etc., since it introduces you
to the world of financial markets, different financial products, valuation
tools and risk metrics.
81
The exam has two parts. You need to clear both the parts and have a work
experience of 2+ years to make you eligible to use the famed FRM
designation beside your name. This indicates that you are a Certified Risk
Manager and are adept at concepts in the Risk Management arena. The
FRM certification also makes you a part of an elite group of global
Financial Risk Managers, connecting you to a vast network and providing
immense learning opportunities.
Who should do a FRM?
The FRM program is tough and also expensive (please see the fees
below). If you are reasonably sure of pursuing a career in Risk
Management, Investment Management or Corporate Finance, and also
have a fair idea of your own abilities to crack the exam, you should give
this program a try. If you are unsure, you could take up FRM coaching /
mock exams being offered by several training institutes to judge if the
exam is something you will be able to crack and if the subject matter
makes sense for the current stage that your career is in.
A FRM is apt for you if:
1. You are a student and want to strengthen your resume for a

career in the Risk or Financial Markets domain
Leave alone clearing, even pursuing FRM has a strong signaling ability.
A candidate who has cleared one or both parts of FRM is seen as
quantitatively sound and proficient in Risk Concepts and Financial
Markets as compared to others. Several students take up this program
simultaneously with their regular degrees.
2. You want to switch to the Risk Management domain from any

other domain
This certification will give you a foot in the door to various opportunities
in Risk Management, without having to do a conventional academic
degree in the subject .
3. You want to deepen your knowledge of Risk, Financial Markets

& Products and Risk Management Tools
Every firm has to manage risk in some or all forms. This certification
gives you a thorough knowledge of risk concepts that can be applied in
various roles across firms.
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Skills required:
1. Above average grasping power:
FRM has a lot of quantitative and statistics related subjects and involves
number crunching. A head for numbers and analytical ability is essential.
3. Multi-tasking:
exam preparation.
4. Diligence and Discipline:
By nature FRM is tough because of the intense quantitative matter and

requires patient perseverance for a reasonable length of time.
The syllabus is vast and can be overwhelming at times. A lot of

candidates have benefitted from enrolling in coaching institutes to help
them understand tough concepts, manage their study time and practice
mock tests. Having regular discussions with a peer group also greatly
helps in understanding complex topics.
Career opportunities after FRM:
Most firms, whether financial or otherwise, have risk teams that assess
and manage Financial Risks. Several firms have dedicated teams for each
type of risk such as a Credit Risk team, an FX Risk team, an Operational
Risk team and so on. Therefore, an FRM designation holder is sought
after widely across industries and sub verticals like:
 Banks and Financial Institutions that need to assess and manage all
sorts of Financial Risk
 Other firms that are interested in managing their financial exposure
related to foreign exchange or markets etc.
 Consultants that advise clients on Risk Management
 Over 95% of the top 20 companies employing the most Certified
FRMs are global Banks / Investment Banks
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Subjects:
The exam is after all mostly about Risk Management and hence the topics
are heavily oriented towards identifying and managing different types of
risks
 Part 1:
 Quantitative Analysis
 Foundations of Risk Management
 Financial Markets & Products
 Valuation and Risk Models
 Part 2:
 Market Risk
 Credit Risk
 Operational Risk
 Risk Management & Investment Management
 Current Issues in Financial Management
Exam difficulty level:
Generally, the FRM exam is seen as a very tough exam and the passing
percentage for Part 1 is usually around 40-50% but has also gone as low
at 39% in the recent past
Registration body
 GARP website: http://www.garp.org/frm/frm-program.aspx
Fees (do confirm with the FRM institute website for the latest fee):
 One-time enrollment fee: ~$300

 Part 1 and 2 registration: $350- $650 per part (depending on if you
register early or late)
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Exam dates and Duration:
 The exam is conducted twice a year, in May and November

 Candidates have the choice to first only take Part 1 and then schedule
Part 2 once they pass Part 1
 The other option is to take both parts on the same day, Part 1 is
conducted in the morning session and Part 2 in the afternoon
 Candidates should pass Part 1 for their Part 2 papers to be graded
 Each part is 4 hours long
Exam format:
This is a pencil and paper test
 Part 1: 100 multiple choice questions to be done in 4 hours

 Part 2: 80 multiple choice questions to be done in 4 hours
 There is no negative marking
 Admission ticket
 Govt. issued ID proof
 HB pencils (or #2 pencils)
 Eraser
 Calculator – only 3 types are allowed:
 Texas Instruments BA II Plus (including BA II Plus
Professional)
 Hewlett Packard 10B II, 10B II+,20B
 Hewlett Packard 12C (including the HP 12C Platinum and the
Anniversary Edition)
 Smartphone’s or smart watches are not allowed
Further Reading:
courses/financial-risk-management/
85
Interview with Mridul Sharma, FRM (A Finance and Risk

consultant specializing in Market, Liquidity and Credit risks), who
shares his experience of the FRM exam
1. Why did you take up FRM?
I needed a differentiating factor in my resume considering that I had an

engineering background and was majoring in Finance during my MBA. I
felt that if I want more options during placements then I should have a
strong financial certification like FRM or CFA. I found the FRM
curriculum to be more in sync with my engineering/science background.
2. How tough is it / hours of study required?
Although, I had studied a few basic finance courses before I picked up

my first FRM book, I hardly knew what Risk meant. So essentially it was
a new subject for me. Hence, it was tough for me to digest all the
information presented before me. The curriculum itself is quite tough but
I believe that it can be a bit easier for a finance graduate to understand the
finance related parts and an engineer to understand the quantitative parts
of the curriculum.
I studied for 3-4 months where initially I spent at least a couple of hours
daily on preparation, which eventually increased to around 12-16 hours
during the days before the exam. During my time (2007), there was only
one part to the exam unlike the two parts conducted now, so I guess
things can be little more relaxed now.
I tried to finish my entire curriculum at least a month before the exam. I

then spent 20-25 days to revisit / revise and the last 5-10 days to focus on
the questions at the end of chapters, available sample papers, etc.
The challenges were unfamiliarity with certain finance concepts and

juggling the vast curriculum with regular college projects/submissions
etc.
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I believe it helped me enormously to get into profiles I was interested in.

There is a recognition and credibility that comes along with this
certification. At work, it helped me interact with clients.
As a consultant, I could speak their language, understand their concerns

and make them aware of the latest changes in the regulatory environment.
I also became the in-house expert in risk modeling and received a variety
of assignments across geographies because of my flexibility in
understanding different risk areas.
87
Association of
6
Chartered
Certified
Accountants (ACCA)
Introduction to the Association of Chartered Certified Accountants
(ACCA) program:
The Association of Chartered Certified Accountants is a global body of

professional accountants based out of UK. If you want to pursue a global
career in accounting, getting enrolled and completing this program will
stand you in good stead. The ACCA, like the CPA (US) is a program
focused on international standards in accounting and will catapult you
into a global chartered accountancy career. It is also not as cumbersome
to apply for and appear as the CPA (US) and could be an alternative to
somebody who wants to either practice abroad or work in a global
accounting setup within India.
In order to be eligible to apply for the ACCA program:
 You need to have cleared your HSC with 65% and above in at least 2
subjects and 50% and above in others.
 Subjects should include English and Mathematics / Accounts
 If the candidates have a higher degree in accounting they can avail
exemptions in some subjects of the course.
To qualify as an ACCA member, in addition to clearing the exam,

candidates need to complete 3 years of relevant work experience.
88
Who should do an ACCA?
The ACCA is a large professional body spread across several countries.

An ACCA qualification is well respected in the industry. If you have a
flair for accounting and want to pursue it as a career in a global context, it
is a great choice. It is not necessary to be a CA to do this course. The
course is also not overly expensive considering the fact that you will have
a global accounting qualification at the end.
An ACCA is apt for you if:
1. You are strong in Maths/Accounting and are looking at

commerce and accounting courses after HSC
The ACCA can be taken as soon as you have cleared your HSC. It makes
sense to start early with such courses if you are reasonably sure you want
to make a career in this field.
2. You already have an accounting / M.Com / CA background
It is intuitively the next step for a candidate looking for a global

accounting career. The CA or M.Com courses will give you a lot of
exemptions, as many subjects will be related.
3. You are looking at a global career or are planning to shift to the

UK
If you are moving to the UK, either being sent by your firm or as a result
of a personal decision, finding an accounting job there or doing your
existing accounting job well there will be easier after having done this
course.
4. You want to deepen your knowledge in accounting
If you are already in the financial or management accounting domain,

especially working in a global firm, an ACCA will broaden your horizons
as well as career progression prospects.
5. You want to improve your resume and role
ACCA is a globally recognized degree and speaks about your proficiency

in accounting topics tested over 14 rigorous exams spread over a few
years. This will definitely add to your resume and market value.
89
Skills required:
1. Flair for accounting, laws and regulations:
The candidate would need to be comfortable with accounting. There will

also be numerous laws, regulations and accounting standards to
memorize. Not only do you need this for the exam, pursuing this course
would mean you end up with an accounting career for good, so it is best
that you have a keen interest in it.
Number crunching will be part and parcel of the exam as well as this
career.
3. Perseverance:
The entire course has 14 exams and it may take up to 3-4 years to
complete the course. Efforts will need to be made in a consistent manner
over a relatively long period of time. A lot of candidates have benefitted
from enrolling in coaching institutes to help them understand tough
concepts, manage their study time and practice mock tests. Having
regular discussions with a peer group also greatly helps in understanding
complex topics.
Career opportunities after ACCA:
Candidates pursuing ACCA can work in a plethora of roles across

different industries and types of firms. Every firm needs an accountant.
Some of the areas where ACCAs can expect to be employed are:
 Accounting roles including:

 Regular Accounting and Reporting
 Accounting Forensics
 Business Valuation
 Personal Financial Planning
 Tax Consulting
 Management Accounting
 Financial Analysis
 Treasury or Cash Management
90
Exams / Subjects:
There are 14 exams in 14 subjects covering different topics in financial

and management accounting.
The exams are split into 2 levels – Fundamental and Professional, which
are the basics and advanced levels of accounting respectively.
 Fundamentals Knowledge
 F1 Accountant in Business
 F2 Management Accounting
 F3 Financial Accounting
 Fundamentals Skills
 F4 Corporate and Business Law

 F5 Performance Management
 F6 Taxation
 F7 Financial Reporting
 F8 Audit and Assurance
 F9 Financial Management
 Professional Essentials
 P1 Governance, Risk and Ethics

 P2 Corporate Reporting
 P3 Business Analysis
 Professional Options (two of the 4 below need to be completed)
 P4 Advanced Financial Management

 P5 Advanced Performance Management
 P6 Advanced Taxation
 P7 Advanced Audit and Assurance
Apart from the above, candidates are also required to appear for a
Professional Ethics module. As discussed earlier, exemptions in some
subjects can be availed if you meet certain education parameters.
91
Exam format:
 All exams are offered as a paper test and a few exams are also
offered as a computer based test.
 Knowledge (F1-F3) - available by computer-based exams (CBE)
or paper-based format
 Skills (F4-F9) - available by paper-based format
 Essentials (P1-P3) - available by paper-based format
 Options (P4-P7) - available by paper-based format
 Most exams are of a 2 hour duration
 Most exams have a mix of multiple choice questions and MTQs
(Multi-Task Questions), which are a bit like cases
 The ACCA has around 400 exam centers across the globe, including
several within India.
The ACCA exam is challenging, however when compared with the US

CPA, it seems a tad easier to handle.
 Although there are more papers, there are also more exemptions
compared to US CPA.
 Pass rates:
 Knowledge level pass rates are fairly high at 60-80%
 Skills levels pass rates are 40-50%
 Professional Essentials pass rates are also 40-50%
 Professional Options pass rates are somewhat low at 30-40%
Exam dates:
 Once you register, you have a 10 year timeframe in which to

complete all 14 exams.
 There are 2 exam cycles / seasons in a year
 Feb to July
 Aug to Jan
 Paper based exams are offered in June and December while
computer based exams are flexible
 One can appear for maximum 4 exams per cycle
 Exams must be appeared for in the order of the module they are
under. Within the module, you can take the exams in any order
 For example, you cannot take F4 before F3. You can, however
take F3 before F2 or F1 because they are part of the same
module.
92
 It is recommended though that candidates follow the given order

from F1 to P7 for better comprehension and results.
Practical Experience and Practice Certificate:
 In addition to clearing the exams and completing the Ethics module,

to become an ACCA you need to have 3 years of relevant work
experience.
 The ACCA dictates certain performance objectives that you need to
attain.
 In order to be able to be globally practicing ACCA member, you
have to undergo a Practicing Certificate Training Record (PCTR) in
addition to having the practical experience. More details on this are
available on the ACCA website.
Fees (please confirm with website for latest fees):
Assuming you don’t pay late and clear all exams in the first attempt, the
total cost will be ~GBP 1,300 or INR 1.25 L.
 Knowledge level: GBP 71 to GBP 231 per exam (depending on

whether you register early or late)
 Skills level: GBP 90 to GBP 252 per exam (depending on whether
you register early or late)
 Professional level: GBP 104 to GBP 268 per exam (depending on
whether you register early or late)
Getting started:
http://www.proschoolonline.com/blog/category/explore-courses/acca-
course/
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Chartered
7
Institute of
Management
Accountant (CIMA)
Introduction to the Chartered Institute of Management Accountants
(CIMA) Professional Qualification or Chartered Global
Management Accountant (CGMA):
The Chartered Institute of Management Accountants (CIMA) based in the

UK is the largest professional body of management accountants. They
along with the American Institute of Certified Public Accountants
(AICPA – the body that conducts the CPA exam) conduct a highly
respected global program called the CIMA Professional Qualification.
The focus of this program is not just on management accounting, but also
on marrying finance and accounting with strategy and decision-making.
This is therefore a course more suitable for people interested in a
corporate career as opposed to just public accounting practice.
In order to be eligible to apply for the CIMA Professional Qualification

program, you should have done a basic course in business or accounting.
94
For this, you could:

1. Take up the CIMA’s own Certificate in Business Accounting
2. Do an MBA or a Masters in Accounting
3. Become a CA or a member of the International Federation of
Accountants
4. Have any other relevant qualification which exempts you from the
CIMA Certificate in Business Accounting
The CIMA professional exam consists of 12 exams in total, spread over 3

different levels (Please read below in the section under syllabus). After
completing all levels and having the required work experience, you will
be designated a Chartered Global Management Accountant (CGMA).
Who should do a CIMA Professional Qualification?
The CIMA Professional Qualification is suited for anybody who wants to

pursue a career in finance focusing on accounting, reporting and business
strategy.
A CIMA is apt for you if:
1. You are looking at a management accounting career
This is a straight no-brainer just like the name suggests. If you would like
to be involved in the decision making of a firm driven by your financial
analysis, this course would very much appeal to you.
2. You already have an accounting / CA background
It is a great next step for a candidate already having an accounting

background. The concepts learnt in CA or M.Com courses will naturally
make it easier for you to assimilate and appear for the CIMA levels.
This qualification proves that you have gone through several levels of
study in advanced management accounting and signals to employers that
you are good hiring material.
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Skills required:
1. Good base in Accounting, Economics, Mathematics:
It goes without saying that the candidate would need to be comfortable

with accounting. There will also be numerous laws, regulations and
accounting standards to memorize. Not only do you need this for the
exam, pursuing this course would mean you end up with an accounting
career for good, so it is best that you have a keen interest in it.
2. Analytical ability and accuracy:
Number crunching will be part and parcel of the exam as well as this
career. CIMAs are largely involved in accounting, making reports,
analyzing numbers and presenting their analysis to the top management.
They cannot afford to make too many mistakes.
3. Perseverance:
The Professional Qualification comprises of 3 different levels tested

across 12 different exams, so one needs to be perseverant and complete
all the different tests over a reasonable time period.

Career opportunities after the qualification:
The CIMA professional qualification can put you in the top league of
management accountants and even increase your earning potential.
Several firms even reimburse or pay for their employees’ CIMA course.
As a CGMA designation holder, you would be qualified to work in a
wide variety of roles inside and outside the finance function. Some
typical roles are:
 Business Analyst
 Forensic Accountant
 Financial Controller
 Group Treasurer
 Project Manager
 Management Consultant
 Financial Manager
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Syllabus:
1. The CIMA syllabus talks about 3 Pillars and 3 Levels. Pillars are
nothing but a body of knowledge (could be thought of as a set of
related subjects). The syllabus in each of these knowledge areas gets
more advanced with very level.
(a) The 3 Pillars are:

 Enterprise: This set deals with effective strategy
implementation.
 Performance: This set teaches financial tools used for the
strategy implementation.
 Financial: This set talks about the preparation and interpretation
of financial reports to make decisions.
(b) CIMA also has 3 Levels, which have to be attempted and cleared in
the order as listed below:
1. Operational Level:
 Basic level that will teach you the preparation of financial

statements and introduce you to financial analysis tools.
 On completing this level, you receive the CIMA Diploma in
Management Accounting.
2. Management Level
 The focus in the second level is on group accounts, project

management as well as making pricing and product
decisions.
 On completion, you receive the CIMA Advanced Diploma
in Management Accounting.
3. Strategic Level
 This is the third and final level that focuses on financial

strategy formulation, risk management as well as strategic
relationship management.
2. To complete the qualification, once the exams have been cleared,

candidates have to prepare and submit a ‘CIMA career profile’ for
the assessment of their work experience.
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(a) Once the work experience is verified (minimum 3 years), they

become Chartered Global Management Accountants (CGMA).
Exam format:
1. All exams are computer based

2. There are 9 objective tests (3 for each level) and 3 case study exams
(1 for each level)
3. Results for the objective tests are available immediately
4. Case studies will test you on all the 3 pillar subjects of that particular
level
5. Case studies are examined manually so the results take time to come
Exam dates:
1. Objective tests
(a) You can take the 9 objective tests on demand and via computer
with results available immediately.
(b) There is no rigid rule on how many tests to take in a time period.
(c) As soon as you pass one, you can move on to the next objective
test.
2. Case studies
(a) Case studies are available 4 times a year
Exams per Level:
1. Operational Level:
(a) Objective Exams:
 Organizational Management (Enterprise Pillar)

 Management Accounting (Performance Pillar)
 Financial Reporting and Taxation (Financial Pillar)
(b) Operational Case Study Exam
2. Management Level:
 Project and Relationship Management (Enterprise Pillar)

 Advanced Management Accounting (Performance Pillar)
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 Advanced Financial Reporting (Financial Pillar)
(b) Management Case Study Exam
3. Strategic Level:
 Strategic Management (Enterprise Pillar)

 Risk Management (Performance Pillar)
 Financial Strategy (Financial Pillar)
(b) Strategic Case Study Exam
The CIMA exams are moderately tough (not too difficult)
1. The passing rates range from 50-60% and several papers have pass
rates above 60%.
2. Test takers say that time management during the exams is crucial.
3. The vast syllabus can be challenging at times.
Fees:
1. If all the exams are taken and cleared in the first attempt within a 3
years time frame, the fees is ~GBP 1,400 (do confirm with CIMA
website for latest fees).
Getting started:
CIMA website:
http://www.cimaglobal.com/
CIMA Study With Us:

http://www.cimaglobal.com/Study-with-us
Further Reading:
http://www.proschoolonline.com/blog/category/explore-courses/cima-
course/
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Chartered
Public
8 Accountant
(CPA)
Introduction to the Chartered Public Accountant (CPA) program:
Just like the CA qualification in India, the CPA is the highest professional
qualification related to accounting in the U.S. One can move towards
becoming a practicing CPA by taking the Uniform CPA exam conducted
by the American Institute of Certified Public Accountants (AICPA).
Different states in the U.S. have a different set of requirements for
accountants to be licensed to practice, however, passing the CPA exam is
a common (hence called uniform) requirement across all states.
Apart from the U.S., a CPA qualification is highly regarded and accepted
globally, including India. With a CPA under your belt, not only can you
practice Chartered Accountancy in the U.S., you can also be considered
for roles involving international accounting policies in other countries.
E.g: an MNC with operations in diverse geographies would definitely be
interested in hiring a CPA so that the employee is knowledgeable about
global accounting policies.
So how does one sitting in India apply for a CPA exam conducted in the
U.S.? Luckily, from October 2014, the exam is now being conducted in
the Middle East as well and Indians are welcome to take the test there. So
now there is no need to make that trip to America just for the exam.
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Who should do a CPA?
The CPA is undoubtedly globally revered, however it is expensive

(please see the fees below) and not everyone’s cup of tea. If you are sure
of pursuing a career in global accounting, and also have a fair idea of
your own abilities to crack the exam, you should give this exam a try. If
you are unsure, you could take up CPA coaching/mock exams being
offered by several training institutes to judge if the exam is something
you will be able to crack and if the subject matter makes sense for your
general situation.
A CPA is apt for you if:
1. You already have an accounting / M.Com / CA background
It is intuitively the next step for a candidate looking for a global

accounting career. The concepts learnt in CA or M.Com courses will
naturally make it easier for you to assimilate and appear for the CPA
exam.
2. You are looking at a global career or are planning to shift to the

U.S.
If you are moving to the U.S., either being sent by your firm or as the
result of a personal decision, finding an accounting job there or doing
your existing accounting job well there will be easier with a CPA under
your belt.
3. You want to deepen your knowledge in accounting
If you are already in the public accounting domain, especially working in

a global firm, a CPA will broaden your horizons as well as career
progression prospects. At the same time, it will upgrade and supplement
your current accounting knowledge.
CPA has a huge signaling factor about your proficiency in accounting

related subjects. Whether you actually pursue the license or not, clearing
the exams will definitely improve your market value.
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Skills required:
1. Flair for accounting, laws and regulations:
It goes without saying that the candidate would need to be comfortable

with accounting. There will also be numerous laws, regulations and
accounting standards to memorize. Not only do you need this for the
exam, pursuing this course would mean you end up with an accounting
career for good, so it is best that you have a keen interest in it.
Number crunching will be an essential component of the exam as well as

this career. CPAs are largely involved in auditing, forensics and other
financial analytics, so analytical ability is a necessity.
3. Good written communication:
The written communication sections in the exam are designed to assess a

candidate’s verbal skills because they have increasingly become an
important skill in a good public accountant’s repertoire.
4. Perseverance, diligence:
The exam requires dedication and a lot of hard work. Perseverance is

hence a key factor.

Career opportunities after CPA:
CPAs or candidates pursuing CPA can work in a plethora of roles across

different industries and types of firms. Who doesn’t need an accountant?
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Some of the areas where CPAs can be expected to be gainfully employed

are:
 Accounting roles including:

 Regular Accounting and Reporting
 Accounting Forensics
 Business Valuation
 Personal Financial Planning
 Tax Consulting
 Management Accounting
 Financial Analysis
 Treasury or Cash Management
Subjects:
Each subject is tested with a separate exam

The subjects are:
1. Auditing and Attestation

2. Business Environment and Concepts
3. Financial Accounting and Reporting
4. Regulation
Exam format:
1. The exam is computer based

2. Questions are a combination of multiple choice, cases and subjective
type
Exam difficulty level: The CPA exam is seen as a tough exam and the
passing percentage is usually around 40-50%
1. The test by itself is not considered overly tough, however the sheer
amount of concepts to master and learn makes it a daunting task.
2. There are 4 exams and one needs to score 75% in each exam to clear.
Exam dates:
1. In order to appear for the exam, the candidate first needs to obtain a
“Notice to Schedule” from the state they apply to, confirming their
eligibility to sit for the exams. This NTS is valid only for a particular
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period hence scheduling exams soon after getting the NTS is

important.
2. All 4 exams (1 for each subject) are offered for the first 2 months of
every quarter. Each set of 2 months is a ‘testing window’, so there
are 4 testing windows in a year.
Testing windows:
 January & February

 April & May
 July & August
 October & November
3. You can appear for one subject only once per testing window. So
effectively, you can take all 4 subjects in one testing window, but
usually people tend to focus on 1 or 2 subjects per window because
of the vast amount of syllabus.
4. You can attempt the subjects in any order.
5. All the four exams should be cleared within a time period of 18

months (for most states), so you must schedule all exams
accordingly.
Exam Duration:
The 4 exams together add up to 14 hours
1. Auditing and Attestation – 4 hours

2. Business Environment and Concepts (BEC) – 3 hours
3. Financial Accounting and Reporting – 4 hours
4. Regulation – 3 hours
CPA Licensure requirements:
1. A CPA license gives the individual a right to practice public

accounting.
2. The requirements to obtain a CPA licensure differ depending on

which U.S. state you decide to apply through.
(a) Education: Most states require that the candidate has at least 150
semester credits (often includes a graduate degree)
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 There are a set number of accounting hours included in the

above 150 credits which varies from state to state.
(b) Examination: All states require that the candidate appear for and
clear the Uniform CPA exam.
(c) Experience: Work experience requirements again vary by state
 Several states need 1-2 years of experience under a CPA,

preferably in a public accounting firm.
(d) Some states require undergoing an Ethics exam as well
3. The license once obtained, needs to be renewed on expiry
4. The licensure also demands a ~40 hours of continuing education

every year (again depends on the state).
5. A licensee can join the AICPA or respective State Society to reap

benefits like access to career resources, knowledge resources,
networking, discounts as well as affinity programs.
Fees:
1. Exam costs vary from state to state

2. Typical application and exam fees are in the range of $800 to $1000
3. Ethics exam fees (if needed) and licensing fees would be additional
Further Reading:
http://www.proschoolonline.com/blog/category/explore-courses/cpa/
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DipIFR for
9
International
Financial
Reporting Standards
(IFRS)
DipIFR for International Financial Reporting Standards (IFRS):
Financial statements/reports form the backbone of Financial Analysis.

Imagine a world where every firm had a different reporting format. It
would be a nightmare to compare, reconcile and analyze companies, even
in the same sector. This is why we have uniform standards for reporting.
The International Financial Reporting Standards is one such global

reporting standard adopted by the International Accounting Standards
Board (IASB). It stipulates how financial statements should be presented,
what should be disclosed, what elements need to be part of which
statement, treatment of interest payments, leases, taxation, depreciation,
etc.
The ACCA, UK runs a Diploma in International Financial Reporting

(DipIFR) program that aims to equip the takers with knowledge on IFRS.
It is a relatively quick and painless program that can be completed within
3-6 months. Although there are several courses out there on IFRS, the
DipIFR is very credible, well laid out and backed by a reputed global
body like the ACCA. This would be definitely better than picking up a
random local course with no value addition.
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Why should one do a DipIFR?
1. To keep in times with the Shifting Standards:
All listed firms in Europe mandatorily follow IFRS while reporting their
financials. Now, IFRS is being adopted by several other countries as well,
including India. Consequently, it makes a lot of sense for any finance
professional/student of finance to keep abreast of this standard.
2. To aid day-to-day work:
If you are involved in Corporate Finance function or are a financial

analyst, then IFRS knowledge will benefit you tremendously and help
you stand out amongst your peers who may not be familiar with this
standard.
3. For ACCA credits:
Additionally, if you are already an ACCA member, doing the DipIFR

will count as continuing education that is required as part of the ACCA
membership.
Eligibility:
In order to be eligible to apply for the DipIFR program you need to have
to be one of the following:
 A professionally qualified auditor / accountant (CA)

 Commerce graduate with at least 2 years of relevant work experience
(Finance and Accounts)
 Non-commerce graduate with at least 3 years of relevant work
experience (Finance and Accounts)
 Have cleared ACCA’s certificate course in IFR along with 2 years of
work experience.
Skills required:
The program is straightforward for somebody who is familiar with

accounting. If you are comfortable with accounting, then IFRS is more or
less a list of DOs and DON’Ts that you have to literally commit to
memory. Therefore, the 2 key skills you need are:
 Knowledge of Accounting / Financial Reporting

 Great memory
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 The DipIFR can be registered for anytime on the ACCA website and
once registered, one can aim to complete it online and earn the
Diploma within 3-6 months.
 You only need to appear for 1 exam, which is 3 hours in duration
 The exam is held twice a year – June and December.
 In order to appear for a particular session of the exam, you must
ensure that the registration formalities are done 20 days before the
exam (in case of postal application) or 10 days (in case of online
application).
 The ACCA has around 400 exam centers across the globe, including
several within India that conduct the exam.
 Passing marks are 50%
 Past exam papers are available for reference
 Since the syllabus changes a lot, these should be referred to with
caution.
Fees (please confirm with website for the latest fees):
 Registration fees: GBP 211 (GBP 299 if late)

 The same amount needs to be paid again to retake the exam
Further Reading:
http://www.proschoolonline.com/blog/category/explore-courses/ifrs/
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Company
10 Secretary (CS)
00 What is Company Secretary?
0
Every company requires Company Secretary who can help statutory and
legal filing requirements. Contrary to the name, it is not a mere secretarial
position, there are various responsibilities which a CS has to follow. He is
the legal expert of the company and has to fulfil the responsibility to be a
compliance officer of the company. In short he is the personnel adopted
by the Board of Directors who has to handle the legal and the statutory
requirements.
Roles and Responsibilities of a Company Secretary
 Maintain a list of directors’ names.

 File documents with Registrar of Companies
 Ensure documentary requirements as per Companies Act.
 Organize, prepare agendas, hold general meetings and record
minutes
 Manage shareholder meetings
 Statutory Books and Registrars
 Be a linking factor for directors, shareholders and regulatory
authorities.
 Filing corporate returns
 Ensure proper compliance and execution of contracts and
agreements.
 Specialized services as required by the directors.
About the Institute
In India, CS is conferred by the Institute of Company Secretaries of India

(ICSI) who holds the charter to grant the CS to do the aspirant. The
Institute works under the Ministry of Corporate Affairs, Government of
India. For more information on the course, please refer:
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http://www.icsi.edu/student/careerascompanysecretary.aspx. It lays down

the curriculum and the exam passing requirements for students to be
eligible as a company secretary.
As a CS, you can either set up your practice to assist various companies
in their legal requirements or seek employment with a company.
Who Should Do CS?
You have a penchant for doing a company law
Company law is the basis of CS’s job role. CS is the perfect option for
you, if you’re passionate about company law and wish to possess
expertise in this field, company secretary is the perfect option for you.
You’re looking out for additional certification
An additional feather on your cap is always a plus point, since, it is

always a glaring point on you CV. You can pursue CS while undergoing
other courses.
Assess if you possess these skill sets
A challenging profession, coupled with myriad opportunities, this

requires a candidate who can multi-task easily and monitor over various
activities in one go, while maintaining compliance in a timely and
efficient manner.
You need a shift in career to finance field
In the recent future, we have observed a lot of students shifting their

focus from science mainstream to commerce and business, CS can one of
be the lucrative options. Many law students contemplate doing Company
Secretary.
For better Career Prospects
Considering the mandatory appointment of a CS under the prescribed

rules, there is no dearth of opportunities for them. Also, you may choose
to start your own practice and cater to multiple clients.
You’re ready to face challenges

Role of a CS is quite daunting & challenging and require meticulous
planning from a Company secretary. As a coordinator and point of
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contact between various departments, a CS has to be always vigilant

about compliance issues. Hence, strictly choose this option, if you’re
okay with dealing with a lot of people in a day.
Program Details of Company Secretary course
If you have a penchant for corporate affairs, and law seems to interest
you, the Company Secretary course can be the apt choice for you.
The Institute of Company Secretaries of India sets up the program and

other requirements which a candidate should undergo to qualify as a
Company Secretary. Following is a brief description of the program
details of the Company Secretary Course. For more information, visit:
https://www.icsi.edu
Eligibility Criteria
You must be a 10 +2 passouts to be eligible to register for the course.
 Foundation Programme
Duration: 8 months
Eligibility: You must be a 10 +2 passouts to be eligible to register for the

course.
Exam Fee: Rs.1200/- per module
 Business Environment & Entrepreneurship

 · Business Management, Ethics and Communication
 · Business Economics
 · Fundamentals of Accounting and Auditing
 Executive Programme
Duration:
Eligibility: Graduate of any stream except Fine Arts/Passed Foundation

Programme
Exam Fee: Rs. 1200/- per Module

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Module 1
Company Law
Cost and Management Accounting
Economic and Commercial Laws
Tax Laws and Practice
Module 2
· Company Accounts and Auditing Practices
Capital Markets and Securities Laws
Industrial, Labour and General Laws
 Professional Programme
Eligibility: Pass Executive Programme
Examinations: June and December of every year.
Exam Fee: Rs. 1200/- per Module
Module 1
Company Secretarial Practice
Drafting, Appearances and Pleadings
Module 2
Financial, Treasury and Forex Management
Corporate Restructuring and Insolvency
Module 3
Strategic Management, Alliances and International Trade
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Advance Tax Laws and Practices
Module 4
Due Diligence and Corporate Compliance Management
Governance, Business Ethics and Sustainability
Source:
https://www.icsi.edu/WebModules/AboutUs/Courses/CS_Course.htm
Skill Sets Required
 Expertise for Company law
A Company Secretary (CS) needs to possess expertise in company law.

As an in-house legal expert; he has to ensure that corporate governance is
also looked after.
 Communication Skills
A CS has to continuously update himself with latest changes and interact

with board of directors to take decisions regarding board meetings,
corporate governance, etc. Hence, it is necessary that he should possess
effective written as well as oral communication skills that can be useful
for
 Compliance
As a company secretary, you’re bound to ensure that the Board of

Directors follow rules and regulations as per Companies Act and ensure
other regulatory compliances, which require him to be constantly on the
radar for managing all activities.
 Time Management & Multi-Tasking
Timely compliance is extremely necessary for company law matters to

avoid penalties. A CS has to be vigilant about compliance issues, for
which it is quite necessary for him to multi-task.
 Attention to Detail
You need to give attention to detail, and be able to track minutest of

details to ensure timely compliance, ensure proper flow of information,
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track irregularities, taking into account grievances of shareholders,

negotiate with stakeholders, etc.
 Meticulous Planning
Sound and meticulous planning is quite necessary in case a company

secretary needs to ensure that all the departments are abiding by law and
complying with terms and conditions.
Career Opportunities for CS
A. Job Opportunities
Since Companies Act, 2013 stipulates certain requirements for

appointment of a Company Secretary, you’ll find various opportunities
for companies in India.
 Any company/organization that has a paid-up capital of Rs. 50

lakhs or more is required to appoint a company secretary
mandatorily to look after the legal matters of a company. Private
and public institutions, banks, stock exchanges, government
boards such as the company law board, etc., have these positions
open for you.
 .If you like or have a passion for teaching, you can also take up a
full-time or part-time job as a faculty in educational institutions,
which can help you harness your in-depth knowledge gained
with your experience.
B. Practice
 You can set up a practice as a legal consultant for company law

matters and corporate governance. Clients requires various
compliance certificates from a registered company secretary.
Thus, as a practicing CS, you have various career opportunities
available.
 Regulatory compliances as prescribed by the Companies Act,
require certifications from a Company Secretary.
 With more and more MNCs being set up in India, they require
assistance of a Company Secretary who can guide them with
registration and compliance matters. This is an additional scope
to grow clients for practicing CSs. Thus, the market is quite
expanding with ample opportunities.
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Further Reading:
http://www.proschoolonline.com/blog/category/explore-courses/cs/
Excerpts from the interview with Mr. Nitin Jhunjhunwala, CA (Gold

Medalist) and CS (Gold Medalist) who has over 10 years of
experience in a Big 4 Audit firm.
Proschool: What prompted you to take up CS?

Nitin: Coming from commerce background, I picked up CS course as it
helps you in understanding the legal framework and interpreting the legal
clauses. It was an added advantage for me in my Chartered Accountancy
profession too. Knowledge of law is of additional help even if you choose
any other field in finance and/or business.
Proschool: What was your study plan?

Nitin: Preparing for CS curriculum is definitely not a cakewalk, however,
more focus is required on regular studying rather than last minute
preparation. The curriculum is so vast that simply studying for a specific
time period before the exam is not enough. My plan was continuous and
regular study with rigorous and exam-focused preparation in the last 2
months.
Proschool: What challenges did you face?

Nitin: Like every other student appearing for any exam, I was also
apprehensive about preparation, missing out on any important topic, not
being able to put up the best performance, etc. Exams are a testing and
difficult time indeed, however, right dedication and focus towards
preparation helps you face these challenges.
Proschool: ·High points in your CS career?

Nitin: Being a gold medalist in CS examination it was overwhelming to
see people recognize and applaud your efforts. Overall, CS prepares you
in developing a thought process that will be useful to interpret laws &
understand legal procedures, and a mindset that continuously yearns for
learning.
Proschool: What skills are expected from an effective CS?

Nitin: Appointing of company secretaries has been mandatory for certain
class of companies as per the new Companies Act, hence, they find
plethora of opportunities out there. Naturally, you’ll find alignment of
any commerce student, towards these courses such as CS, since it offers
opportunities. For a rewarding career, I would suggest CS be
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complemented with some other options such as LLB, CA, etc.,

considering your area of interest.
Proschool: Any word of advice for aspirants?

Nitin: Set your priorities and keep your focus intact. Though your
preparation must lead you to successful clearing of exams, it is just a
starting point in your career. Applying the knowledge you’ve learned at
various levels of CS curriculum in your work life through different
perspectives is extremely crucial.
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Masters in Business
11 Administration
00 (MBA-Finance)
An MBA program gives an overview of all aspects of running a business
e.g. Finance, Accounting, Marketing, Strategy, Operations, HR, etc.
The field of specialization chosen allows you to focus on one or two

fields based on your interest by choosing elective subjects in that field.
Finance is one of the most popular specializations within Master of
Business Administration (MBA) programs.
Students pursuing an MBA in Finance gain the business and financial

skills needed to work in a number of enterprises. They often have access
to top-notch internship opportunities while still in school, and they
generally command better positions and higher salaries upon graduation.
An MBA in Finance offers benefits to working professionals in every

industry and is often seen as a pre-requisite to move up the ranks. For a
working professional, an MBA in Finance also allows you to switch
careers and move into fields as diverse as Corporate Finance, Investment
Banking, Credit Research, Risk Management, etc.
MBA vs.Post Graduate Diploma in Management (PGDM).
Some colleges offer an MBA program while others (e.g. IIMs) offer a
Post Graduate Diploma.
What is the difference? MBA is a degree and only a University can offer
a degree. Any autonomous colleges who are not affiliated to any
University but run programs approved by the AICTE (All India Council
for Technical Education) offer a PGDM. Hence FMS, Symbiosis, Narsee
Monjee etc. offer MBA degrees whereas IIMs, XLRI, Manipal etc. offer
a PGDM.
117
As far as industry recognition goes, a Degree or a Diploma does not make

a difference. What matters is the reputation of the college which in turn
translates into the type of companies who come for campus recruitment.
An MBA degree from distance education or part time MBA has
significantly lesser value (from an industry recognition standpoint) as
compared to a full time course.
MBA vs Professional Qualifications
MBA is a degree which can be obtained from a number of colleges. The

true value of an MBA qualification comes from the college from where
you study for the simple reason of ‘Demand and Supply’. Apart from the
specialized knowledge, Demand and Supply is also the reason why
people having a professional qualification (CA, CS, CFA, CIMA, etc.)
are in demand by the industry.
It is highly recommended that one should do MBA from top 30 colleges

in India or abroad. The reasons for doing MBA from top colleges are:
1. Excellent Faculty
2. State of art infrastructure
3. Networked Alumni
4. Excellent campus placements
5. Brand Value of College
6. Structured learning required for leadership positions in the companies
If you don’t get top MBA college then it is recommended that you do
some professional financial courses like CFA, CIMA, CPA, CFP or NSE
Courses which can provide you a better start in the finance industry. A lot
of MBA graduates from top colleges also pursue a professional
qualification as that gives them the depth of knowledge in a particular
field of finance. An MBA in Finance gives an overview of the various
fields within the wide world of Finance.
MBA from India or Abroad
The choice of a college for doing an MBA should be based on Ranking of

College and Industry Linkages. Location (India or Abroad) should not be
the deciding factor. While cost is an important consideration, an MBA
from a top college (even though expensive) will give the requisite returns.
Doing an MBA from a Tier II college abroad will prove very expensive
and will not give the necessary boost to your career. The Fees for doing
an MBA program varies a lot
118
Typically MBA from a top college in India would cost Rs. 10 lac to
Rs.20 lac and from a top school abroad would cost Rs.30 lacs to Rs.60
lacs.
The biggest advantage of doing MBA from top colleges is that you will
have options to choose from in terms of how you want to build your
career. You will be prepared for leadership role in the finance domain
across industry sectors.
Who should do MBA in Finance
You have 3 – 5 years of experience in Finance industry and now want to

move up the career into leadership or strategic roles: MBA in Finance
will not only teach you the Finance subjects, but you also learn about
leadership skills, people management, marketing, strategy etc which are
required to get into senior positions of a company.
You want to switch to the financial domain from any other domain. If you
are working in sales/ marketing/ technical job but have a passion for
Finance, an MBA in Finance will give you a foot in the door to various
opportunities in the financial domain, without having to do any
conventional academic degree in finance. You can thereafter choose to
enhance your knowledge by pursuing a professional qualification in your
chosen are of specialization.
Skills required
 Above average grasping power:
The syllabus is vast and requires a lot of practice. It helps if the

candidate is a fast reader and has a good grasping ability.
 Quantitative and analytical ability:
MBA in Finance in the end is a finance course, so a head for

numbers and analytical ability is essential.
 English language skills:
A good command over English will definitely help while

answering questions (especially sections like Ethics and essay
questions in L3). The syllabus is vast and can be overwhelming
at times. A lot of candidates have benefitted from enrolling in
coaching institutes to help them understand tough concepts,
manage their study time and practice mock tests. Having regular
119
discussions with a peer group also greatly helps in understanding

complex topics.
 How to get in top B schools?
One can get into Top B schools by qualifying the entrance

exams viz CAT/GMAT /CMAT. All the entrance exams
have the following components:
 Written Test: To get into any B schools in India, one has to

clear the entrance exams. Most of the premier B school
accepts CAT score. IIMs conducts CAT exam in the month
of November every year. Other Entrance exams to get into
B schools in India are: SNAP, XAT, IIFT, NMAT, CMAT
etc. But if you are targeting B schools outside India, then
you need to write GMAT. GMAC conducts GMAT. Exams
are open throughout the year.
 Essay: To get into B schools you have to write an essay

mentioning about why you want to do MBA, your goals,
your profile which includes work experience, social work,
academics achievements, and other extra-curricular
activities. Essays are more common for getting admissions
in colleges outside India.
 Group Discussion & Personal Interview: GD & PI are

standard selection tools for admission into good business
schools in India.
While your academic record, work experience (if any) and

scores in the entrance test qualify you for an interview call,
your final selection depends largely on your performance in
the ‘last mile.’
 Structure of Entrance Exam papers:
Largely all the entrance exams viz CAT, GMAT, NMIMS,

SNAP have the following structure:
 Quantitative ability (Based on 10th Math’s)

 Reading Comprehension
 Data Interpretation
 Verbal Ability
120
Career opportunities after MBA in Finance:
Candidates who have done MBA from top B schools are hired across
several types of firms
 Investment Management / Wealth Management firms / Portfolio
Management firms
 Investment Banking
 Equity Research
 Private Equity
 Credit Rating/Analysis
 Corporate Finance Divisions
 Risk Management
Curriculum
MBA in Finance programs typically provide foundational education in
statistics, leadership, economics, strategy and marketing. Students often
choose a specialization during the second half of these 2-year programs.
Some schools offer a curriculum loaded with business-related courses,
such as management methods and accounting, with a few electives in
financial subjects.
Others offer the opposite, presenting some general business training, with
the majority of the courses focusing on financial, investment and banking
topics. Programs may also allow students to choose a specific focus in
their financial education, such as commercial, investment or real estate
studies. Topics commonly taught through a finance MBA program
include -
 Financial Statement Analysis

 Foundations in Finance
 Micro and Macro Economics
 Financial instruments
 Futures and options
 Market trading and volatility
 Capital Markets
 Risk management
 Corporate finance
 Investment banking
121
Interview with Munira Lokhandwala who is From IIM Calcutta and

working as professional Trainer for various Financial courses as well
as has scored 100 percentile 3 times in CAT.
1. Why did you take up this course/certification?
I was always quantitatively inclined and I was quite certain that I wanted
to do my post graduation in management. Combining the two, I felt an
MBA in finance was a natural choice.

The tougher part is getting through a good college. In IIM Calcutta, the
curriculum is more flexible hence you can deploy your own schedule for
teaching. I used to study around 3 hours a day.
Study plan included getting to know the class material then if you have
time, you work with the handbook and look at earlier question papers.
The biggest challenge was getting used to the trimester system where
every exam counted in the final score. I was a Mumbai University B. Sc.
Math student where only the T. Y. final exam score comes on your mark
sheet. So, you can do a lot of extra - curricular activities (or perhaps
nothing) for the first two and a half years, pick your books in the last
semester and still have a good score on your final mark sheet.
A continuous diet of exams and quizzes makes you more aware of time
and hence time management is a skill that I picked up automatically
during my MBA in finance.
122
Informative Articles
1. New Avenues in Finance for Commerce Students
Students pursuing commerce in India have had limited study and career
opportunities thus far. CA has been the preferred choice. It is the
qualification that can validate financial statements and hence is the most
established.
Also, since the cost of pursuing CA qualification is low, it finds many

takers in India. Of the approximate 13 Lac students passing from
commerce stream, nearly 1 Lac takes the CA every year. But with a pass
percentage of around 5%, only 5000 eventually make it.
MBA Finance is a viable alternative but only if you make it to top 30-40
institutes. So, other than the 8,000-10,000 students pursuing MBA in
institutes like the IIMs, XLRI, Bajaj etc., the remaining struggle to build
a career in finance and most of them end up working in call
centers/BPOs.
A career in finance remains a dream for most. Over the last few years the
financial landscape is changing, many education and certification options
have emerged.
New options: (For details, check Finance career guide)
1. CIMA
2. CFA
3. CFP
4. FRM
123
2. Difference between Indian Qualifications & Global Qualification

in Finance
Criteria Indian Qualification Global Qualification
Designed to incorporate
the best global practices.
Curriculum designed
Further the curriculum is
Curriculum in keeping the rules &
updated regularly to
regulation in India.
incorporate the recent
changes.
40%-60%. Higher
passing percentage is
Passing Rate 3%-8%. due the focused nature of
the courses and the
flexibility provided.
Cost of the
qualification
Rs.1 lac to 2 lac Rs.2 lac to 3 lac
(Exam Fee +
tuition)
Employment Employment
opportunities are good opportunities are good,
in India especially if especially with MNCs, if
you are looking jobs you are looking for jobs
which are required by other than in Tax &
the Statutory rules Audit. Moreover
Employment
such as Taxation & competition among job
opportunities
Auditing. But at the applicants is less
same time you will because lower numbers
face stiff competition of students in India
because large of enrolling to these
participants applying courses due to lack of
for the same. awareness.
124
Criteria Indian Qualification Global Qualification

Due to the presence of
these courses across the
globe, their acceptance is
Global acceptance is high. Moreover,
Global Acceptance
low. candidates with this
qualifications are
employable in most of
the countries.
Most of the Indian
Students are not required
qualification requires
to go through any
you to go through
internship. They have a
Internship. This
requirement of work
internship duration is
Internship experience which can be
not considered in
fulfilled before or after
work experience and
completion of course.
students are paid
Students are paid salary
stipend during this
for working.
period.
3. MBA Finance or Professionals Qualifications in Finance for

graduates?
After graduation, many students as well as their parents are confused

about potential options to make a career in finance. The confusion
essentially lies between an MBA in Finance or a Globally well-
recognized Professional Qualification.
Munira Lokkhandwala (MBA in Finance IIM C and CFA, FRM)

simplifies these choices for the graduates. If you have some work
experience and are able to get a seat in one of the top B-schools, then an
MBA in Finance is a great option. But good MBA colleges are limited
and the number of seats in these colleges do not go beyond 3000.
Hence, if a student (the majority of students belong here) is not able to

gain admission in top B-schools such as the IIMs, SP Jain, JBIMS, FMS
etc, then professionals programs can offer you excellent career options.
125
Global qualifications are recognized by all the MNCs not just in India but
across the world, while a normal MBA (i.e. an MBA from second rung
B-schools) is not well received even in India.
Second, Global qualifications will offer you more depth to understand

Finance & Accounting, while an MBA will give you general
understanding of all managerial areas such as HR, Marketing, Finance,
Leadership etc. which may not be necessary in the initial years of careers.
Finally, most of the professional programs such as CFA, CFP, CIMA are
taught by the professionals from the industry where as the MBA
curriculum is taught by the academicians.
Professional programs offer you flexibility during your education which

means you can work while pursuing the program; this option is not
available in full time MBA. Another important aspect is budget, most of
the global qualifications will not cost of more than 2 lacs but a two year
MBA will cost you noting less than 7 – 8 lacs. Finally, after doing global
qualifications, you can still opt for B-schools.
Many of the B-schools such as ISB Hyderabad consider profiles of the

candidates to determine admissions for their applicants.
4. Global Qualifications in Finance at Glance
CFA CFP CIMA

Duration 2 to 3 years 1 Year 2 to 3 years
Establishment
1963 1985 1919
Year
Members 1,23,000 70,000 2,17,000
Corporate
Investment
Finance, Risk
Banking,
Wealth Management,
Wealth
Management, Financial
Management,
Job roles Financial Analysis,
Portfolio
Planning, Business
Management,
Retail Banking Analysis,
Equity
Management
Research,
Accounting
126
All the leading

Finance More than 50
Institutions Financial More than
including JP Institutions 4500 recruiters
Morgan Chase, including including
PWC, HSBC, ICICI Bank, P&G, Coca
Bank of HDFC, LIC, Cola, Pespico,
Recruiters
America Merrill SBI, HSBC, KPMG, E&Y,
Lynch, UBS, Standard & Vodafone,
Ernst & Young, Chartered, Tata Motors,
RBC, Barclays, Ford Motors ,
Citigroup, Deutsche Bank PWC, Tesco,
Morgan , Kotak Bank, HP, etc
Stanley, and Axis Bank etc
Wells Fargo
Salaries* 8 to 12 lacs 4 to 6 lacs 8 to 12 lac
Final Year After 10th of
Eligibility After 12th
Bcom Age 16
All the metro
Exam Centres 85 + Cities 100 + Cities
Cities
*Salary survey done by the respective institutes.
5. Growing need for globally qualified finance professionals in the

industry
With the increasing number of foreign companies setting up their

businesses in India and the Indian companies going global, the need for
finance professionals with global qualifications is increasing. While some
may argue that CAs / MBAs are qualified to take up such jobs, the
companies have started looking beyond these candidates.
The reason for this shift is that they are looking for candidates with
qualification which are more evolved and more focused. Let’s take the
example of CFA, which is focused towards providing you technical
knowledge required by all investment professionals. While our own
MBAs/CAs have some knowledge of these subjects, they lack the depth.
This is why we see a lot of students passing the CFA level 1 but struggle
with Level 2 and 3. The CFA curriculum has stood the test of times
across different countries. Another example is CIMA, which focuses on
developing four skills, the technical skills, business skills, people skills
and the leadership skills that are essential for modern day finance
professional.
127
Just having strong technical skills (like CAs) or good people management
skills (Like MBAs) are not enough in today’s world where all functions /
departments are interlinked. To overcome the scarcity of well-equipped
finance professional, companies such as Procter and Gamble, Vodafone,
KMPG have become learning partner of the CIMA institute, while
Morgan Stanley is learning partner of the CFA institute.
6. No CA, No Problem: You can still be a CFO
Till the last decade, CFOs (Chief Financial Officer) across organizations
were involved only in the financial functions of the organization in the
narrowest definition of the phrase. In such scenarios it was not surprising
to see that a lot of CFOs were Chartered Accountants (CAs).
To understand the composition of the current CFOs we need to first look

at how the role for a CFO has evolved. The job of the CFO is broadening
far beyond its financial area into a role that is much more “strategic” – in
the broadest sense of the word. Successful CFOs are overturning
outmoded perceptions of finance as “business prevention units” and are
now repositioning their role as an enabling partner to the organization’s
business.
For a lot of CFOs, their day-to-day contribution focuses on providing

insight and analysis to support the CEO and ensuring that business
decisions are grounded in sound financial criteria. This hence goes
beyond being an “information provider” or “aggregator presenter.” Their
commercial understanding and analytical skills mean that this proactive,
yet supporting role is a vital part of understanding how different decisions
will lead to certain outcomes.
Another major change for CFOs in the corporate world is the fact that
now CFOs act as the face of the company on all issues related to overall
financial performance. Hence good communication skills that form the
backbone in building trust among an expanding universe of stakeholders
is considered a critical aspect of the CFO’s makeup.
Depending on the background, relationships with external stakeholders,

such as investors, analysts and the media, are a challenge for many.
Indeed, these “softer skills” seem to be an issue for many CFOs. Asked
where they need to enhance their skills and knowledge, most CFOs point
to communication and influencing as the most important area for
improvement.
128
The basic requirements of CFA (see below table) lean heavily towards
management accounting. Currently in the international corporate arena
less than 1/3rd of the CFOs are Chartered Accountants.
+This representation can only go down in the future. Future CFOs are
more likely to be management accountants or an MBA in Finance.
 Roughly one-third of CFOs in

our survey play a major role in  They are more likely to
the development of measure their own
organizational strategy. Strategy performance on
developers are on average more improvement to the
satisﬁed with their remit, organization’s financial
compensation and the resources metrics.
for the finance function.
 There is no distinct
 They are happier with their relationship between the
potential for career development. strategy developers and size
of company.
 They tend to be slightly
 They are significantly more
older and more broadly
likely to have a strong
educated but are less likely
relationship with the CEO and
to be chartered accountants
other C-level colleagues.
or PhDs
35% CFOs play a leading role in developing corporate strategy.
61% believe that finance's standing has improved in the last 3 years.
65% agree that cost management is the No. 1 priority compared

to 3 years ago.
129
7. Boost your chances of getting into premier B-schools with Global

Qualification
Rajiv, a fresh graduate appeared for CAT 2013 and secured 99.7
percentile. But to his shock he didn’t receive calls from any of the
premier IIMs. After some research he found that IIMs are increasingly
giving weightage to the overall profile of the individuals which includes
additional qualifications experience and score in CAT etc.
Like Premier B-schools in the developed countries, the Indian B-schools

have also started focusing on the overall profile of the candidates. In
such a scenario an added qualification can give you an edge over other
applicants. Going for qualifications such as CFA, CIMA can be a better
option as these are globally recognized, more focused and may require
less efforts.
Moreover, if you don’t get a B-school of your choice, these qualifications

will help you get a respectable job. In future, if you wish to pursue MBA
these qualifications along with your experience will give an added
advantage in cracking top B-schools across the world.
8. Reasons for low passing percentage of Indian professional

Qualifications
Ajit started pursuing CA and cleared the CPT exam at the first go. He
was confident of becoming CA soon. It’s been 7 years since then, but he
has not yet completed his CA. He completed his IPCC in 5 attempts and
is still writing his CA final exams (3 attempts already taken).
While others in his age group are already settled, Ajit is still trying to get
a qualification. This is not the story of one Ajit, there are thousands of
Ajit who have been struggling with Indian qualification like CA (pass
rate: 5-8%) and CWA (pass rate: 3-5 %).
Then why are the students/parents still insisting on these career options?
Anand Desai, an experienced educational counselor believes "large
population, lack of awareness about other options and low cost of the
program, prompts large number of candidates to go for these courses."
130
However, these exams have low passing rate because:
a. the Institutes want maintain the demand & supply ratio of CA /

CWA in the job market
b. rigid structure of these exams, for example in CA, if a student is
unable to clear 1 exam in the group, then he has to repeat the entire
group.
Also, these exams have a funnel structure, where the passing rate is high
at first level and goes on reducing after that, leading to very
low completion ratio.
The solutions for this he suggests, Exam body should change the exam
structure to make them more flexible like CIMA, where if a student
unable to clear one of the exam out of 3, he only has to write the paper he
didn’t clear.
Second, similar passing percentage at all the Levels like CFA whereas all
the levels have pass rate of 40% to 50% and third to make students aware
about different options available to them in Finance rather than doing
only certain sets of qualifications.
Further Reading:
http://www.proschoolonline.com/blog/

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Finance Career

Wish you all the best.

IMS Proschool Team,

Sr. No. Topic Page No.

1 Commercial Banking 1–6

5 Financial Risk Management 27 – 34

1 Chartered Accountancy (CA) 57 – 62

2 Chartered Financial Analyst® (CFA) 62 – 67

3 Certified Management Accountant (CMA) 68 - 73

4 Certified Financial PlannerCM (CFP) 74 – 79

5 Financial Risk Manager® (FRM) 80 – 86

11 MBA (Finance) 116 - 121

12 Informative Articles 122 - 130

What is Commercial Banking?

We all have some sort of experience with commercial banking services.

These two are the primary services of a commercial bank. Taking in

The career we are going to discuss is that of a Commercial Banking

Key skills required:

Key skills for an entry-level role would be:

2. Knowledge of banking products, markets and relevant

3. Sales and negotiation skills: This is a significant skill that banks

4. Strong communication & presentation skills: In this role, your

How to get in:

 Most RMs are MBAs in either finance or marketing.

 RMs could either service retail clients or institutions

A typical day in the life of an RM (entry level):

Salary and perks:

 The starting salary for a Commercial Banking RM is around INR 7-

Interview with Shreya Telang, who is an RM with an MNC bank

1. Please tell us about your background and qualifications

I completed my MBA in marketing and finance (equal credits) from the

I was interested in the financial domain and even more interested in a

3. Your current role and a typical day?

My current role is maintaining an effective and efficient relationship with

4. High points in your career so far?

Since banking is highly regulated, some client requests do not get

6. Outlook for the industry?

As more and more customers are becoming internet and technology

7. Career opportunities for aspirants in India (and elsewhere)?

8. Word of advice for aspirants?

It is not enough that a company markets its products and services. To be

Key skills required:

Key skills for an entry-level role would be:

1. Strong analytical and quantitative skills: Since this is a core

2. Knowledge of accounting, financial analysis and reporting,

3. Attention to detail and diligence: Ultimately, you will be working

4. Problem solving: You need to demonstrate problem solving skills if

5. Strong interpersonal skills: You will liaise with a lot of people in

How to get in:

 A major chunk of Corporate Finance professionals or Finance

At the entry level, candidates join as Analysts or Assistant Managers.

 Accounting and book keeping

A typical day in the life of a Corporate Finance executive (entry

 The day typically begins by working on the periodic financial reports

Salary and perks:

 The starting salary for Corporate Finance Analysts is around INR 5-

Interview with Nageshwar Rao Pusarla, who has 6+ years of

1. Please tell us about your background and qualifications

I am a B.Com graduate and a Chartered Accountant. I am currently a

2. How did you get into this role?

I was selected via campus placement.

3. Your current role and a typical day?

The work of a corporate finance professional is vast and includes various