IBS Hyderabad

IBS Hyderabad (Academic Year 2022-23)
Course Handout
Program : MBA
Course Code : SHFI628
Course Title : Financial Derivatives and Risk Management Semester: III
Faculty Name : VDMV Lakshmi Room No: F-205
Consultation Hours (Day/time): Thursday, 2:00-3:00pm (tentative)
Mobile No: 9490178397 Email: vdmvlakshmi@ibsindia.org
Program Outcomes (PO):

At the successful completion of the MBA Program, the students are expected to achieve the following outcomes.
PO-1 Critical Thinking

PO-2 Effective Communication
PO-3 Social Interaction
PO-4 Effective Citizenship
PO-5 Ethics
PO-6 Environment and Sustainability
PO-7 Self-directed and Life-long Learning
PO-8 Initiative/Leadership
PO-9 Employability
PO-10 Teamwork
PO-11 Cross-Functional Skill Development
PO-12 Demonstrate Mastery in Analytics
Course Description:
Every business activity involves risk and financial risk is the most important aspect which is to be
efficiently managed to protect the interests of all stakeholders of the organization. The course would
introduce different types of financial risks that an organized is exposed to and various risk management
techniques used to manage such risks with main emphasis on derivatives as one of the risk management
techniques. The course would enhance the conceptual knowledge of various types of derivatives such
as forwards, futures, options and swaps. The course emphasizes on the concepts such as the difference
between forwards and futures, marking to market and margin trading in futures, the application of
forwards and futures in hedging and speculation. Further, the emphasis is on pricing the forwards and
futures and the arbitrage mechanism in case of mispricing. The course further deals with understanding
various options and option positions, money-ness of the options, suitable option
strategies/combinations in accordance with the trader’s expectations about market movements, factors
effecting option prices, put-call parity, option boundaries, option pricing models and sensitivity of
option premiums. The course also deals with designing of interest rate swaps and currency swaps, the
valuation of swaps and other concepts such as forward rate agreements, weather derivatives, value at
risk etc. Thus, the course would enable the student enhance not only the conceptual knowledge and
practical application of the concepts but also critical thinking and analytical skills. The course requires
the student to prepare a comprehensive project report on different derivative instruments traded on
different exchanges across the globe, application of derivatives in hedging, identification of the
suitable option trading strategies as per the expected market conditions and determination of VaR
which helps in improving their critical analysis and written communication skills.
1
Course Objectives:
The course is designed to -
• To sensitize the various types of financial risks a company is exposed to and the risk
management strategies and practices the companies adopt
• To provide a conceptual knowledge of various derivative instruments and their properties,
marking to market mechanism, margin trading etc.
• To sensitize how to choose the suitable derivative instruments i.e. forwards, futures, options
and swaps for hedging and speculation
• To provide a conceptual framework on pricing the various derivative instruments to identify
mis-pricing and take the benefit of arbitrage.
• To get acquainted with the application of various option trading strategies for different market
conditions
• To introduce the designing of swap transactions and conducting the valuation of swaps
• To provide conceptual knowledge about forward rate agreements, weather derivatives, Value
at Risk (VaR) etc.
• To provide a framework for enhancing critical analysis and written communication skills
through project report preparation
Course Learning Outcomes (CLO):

CLO1: To conceptually understand the mechanics of Forwards/Futures, Options and Swap markets
and their role in risk management
CLO2: To comprehend, select and apply the suitable hedging strategies using forwards, futures and
options in real world situations.
CLO3: To analyze the option trading strategies and apply the suitable strategy according to expected
market movements.
CLO4: To get first-hand experience on valuation of Forwards/Futures, Options, and Swaps which help
in interpreting and drawing inferences and taking the advantage of arbitrage.
CLO5: To understand the basics of forward rate agreements, weather derivatives and Value at Risk
(VaR)
CLO6: To enable the student develop critical thinking and analytical skills and be conversant with
written communication skills through the project report preparations.
Course Learning Program Outcomes (PO) Pedagogy Assessment

Outcomes (CLO)
CLO-1 PO-1, PO-3, PO-8, PO-9, Lecture, Case Method, Excel Quizzes, Project Report
PO-10, PO-12 Modelling, Practice Insight Preparation
Videos
CLO-2 PO-1, PO-3, PO-8, PO-9, Lecture, Case Method, Excel Quizzes, Case Analysis,
PO-10 Modelling, Data Based Project Report
Insight, Practice Insight Preparation
Videos
CLO-3 PO-1, PO-3, PO-8, PO-9, Lecture, Case Method, Excel Quizzes, Case Analysis,
PO-10 Modelling, Data Based Project Report
Insight Preparation
CLO-4 PO-1, PO-9 Lecture, Case Method, Quizzes, Problem
Practice Insight Videos Solving, Project Report
Preparation
CLO-5 PO-9, PO-3, PO-8, PO-10, Lecture, Excel Modelling, Quizzes, Case Analysis,
PO-12 Data Based Insight Project Report
Preparation
2
CLO-6 PO-2, PO7, PO-9, PO-10 Lecture, Case Method Project Report
Preparation
Recommended Text Book:

 Options, Futures and Other Derivatives: by Hull, John C. & Basu, S., 10th edition, Pearson.
Suggested Reference Books:
 Derivatives: Valuation and Risk Management by Dubofsky, David A., 1st edition, Oxford Publication
 Derivatives: Principles and Practice by Sundaram, R. K and Das, 1st edition, McGraw Hill Publications
 Derivatives and Risk Management by N R Parasuraman, 4th edition, McGraw Hill Publications
Digital Resources:
A] ACADEMIC/NPTEL/SWAYAM:
S. No. Course Title & Link Proposed by
(Professor/Institute)
1. Financial Derivatives and Risk Management (Video) Prof. J.P Singh, IIT
https://nptel.ac.in/courses/110/107/110107128/ Roorkee
2. Financial Derivatives and Risk Management (Web) Prof. J.P Singh, IIT
Roorkee
Overview of Derivatives
https://drive.google.com/file/d/18djKXWmFGnvvhS3eBL-
49goP7xme5K7p/view
Forwards: Introduction and Pricing

https://drive.google.com/file/d/1a9Yoh2X2H4UVoaUNpfvOZiqQ_8m1kF
Zm/view
Forwards: Pricing and Arbitrage

https://drive.google.com/file/d/1iIDKawItHvRQLdUM3yaBxI5RH6KHwI
7-/view
Futures: Margining & MTM

https://drive.google.com/file/d/1U0yy94PWZxBcZK6dpYs_r9MSs_C9FYr
a/view
Hedging with Index Futures

https://drive.google.com/file/d/1MhcHZbtKYSBwOqrhyeVksFCSwIDIyQ
n6/view
Option Basic Theory

https://drive.google.com/file/d/17-zcWHxHlGLQmE-
RKLUieOn48qKjM6_U/view
Option Strategies
https://drive.google.com/file/d/1otYYQkiCsxiAMzsSLB45sAWaSK-KUF-
V/vie
Black & Sholes Model

https://drive.google.com/file/d/1gGV6yGoCtNpixQcxyYdgqmLl8p3ilkTx/
view
3
Option Greeks
https://drive.google.com/file/d/1f7IKxfyFrcRNcLsyhoHJ7MoCGaW_gTH
M/view
Forwards Rate Agreements and Swaps
https://drive.google.com/file/d/13G4CoKu6dEtgqpWvRzXO1iqCG_RSjZp
_/view
Value at Risk
https://drive.google.com/file/d/1uVzB6mvY3uHQ5jtXcYXDkg6QJeWiDK
1w/view
3. The Building Blocks of Risk Management Prof. James Forjan

https://www.youtube.com/watch?v=sKMt1qzmGfU (FRM Course by
GARP)
What is ERM?
https://www.youtube.com/watch?v=653Qn1_4pmY
How Do Firms Manage Financial Risk?

https://www.youtube.com/watch?v=HWnc2NS5lus
Hedging Strategies using Futures

https://www.youtube.com/watch?v=_9_auzGNx50
Trading Strategies involving Options

https://www.youtube.com/watch?v=8BRgSLf37Yg
Option Greeks
https://www.youtube.com/watch?v=7r3iAClU5a8&t=14s
Black & Sholes Option Pricing Model

https://www.youtube.com/watch?v=8_EaeHb7f54
Swaps
https://www.youtube.com/watch?v=szjMpRVcse8
B] INDUSTRY INSIGHT:
S. YouTube Video Title & Link Speaker/Event/Or
N ganization
o.
1. Risk Revolution McKinsey
https://www.mckinsey.com/~/media/mckinsey/dotcom/client_service/risk/worki Working Paper on
ng%20papers/1_the_risk_revolution.psdf Risk
2. Managing Risk in Practice David Hillson

https://www.youtube.com/watch?v=fVIqy51oyS4 (Thought-leader
and expert
practitioner in risk
management)
3. Introduction to Risk Management David Hillson
https://www.youtube.com/watch?v=Cp_XEhexcDw
4
4. Risk Management Basics: What exactly is it? David Hillson
https://www.youtube.com/watch?v=BLAEuVSAlVM
C] DATA INSIGHT:
S. Resources Weblink
No.
1. Online Virtual https://web.sensibull.com/login
Trading Tool (for Online Virtual Trading Tool: https://moneybhai.moneycontrol.com/
hands on training
and experience)
2. Stock/Commodity https://www.nseindia.com/live_market/dynaContent/live_watch/option_chain/
Exchanges https://www.bseindia.com/
Stock/Commodity https://www.mcxindia.com/
Exchanges https://www.icexindia.com/
https://www.ncdex.com/
websites of international stock exchanges
3. Data base https://in.finance.yahoo.com/
D] OTHER RESOURCES:
S. No. Resources Weblink
1. Article
2. Report
3. Survey
4. News Item
Digital Tools:
Software/Packages: MS Office especially MS-Excel
Meeting Platform: Google Meet
Information sharing/data collection: Google suite (forms, sheet, doc)
Online communication in groups: WhatsApp
Detailed Session Plan:
Articles (A)/Cases
Sess
Session Learning (C)/ Reports Chapter
ion Topic/Sub Topics
Outcomes (R)/Technical Notes Reading
No.
(T)
Why manage Risk?

• Overall Industry Background
Introduction to Risk understandin Note
Management: g of Product Code: 9-294-
Dynamics in the emergence of enterprise
1 107-PDF-ENG Handout
risks; enterprise risk and its role; risk
importance of risk management management Publication Year: 2001
in an organization and its Industry: Finance
importance
5
• Describing Hando
Introduction to Financial Risk various ut
Management: types of
What is financial risk financial
2 management?; various types of risks
financial risks;
• Understandi
various risk management
ng various
techniques
management
techniques
Introduction to
Derivative
Instruments
Basics of
Introduction to Derivatives: Product Code: 295141-
• Forwards
Various types of derivative PDF-ENG 1
• Futures
3-4 instruments; forwards, futures, Publication Year: 1995
• Swaps
options and swaps Industry: Finance
• Options
Portfolio Hedging –
The Case of ICICI Value
Fund Series 7(D) –
FINC/160
ICMR Case ID:
• Understandi FINC160
ng the Publication Year: 2019
market
Forwards and Futures
mechanism Application for
Differences between forwards
of forwards Financial Futures –
and futures; Functioning of the
and futures 3-286-109-PDF-ENG
futures market; Marking to
market; Application of forwards Publication Year: 2, 3 and
5-10 • Understandi
and futures in hedging, 1986 5
ng how to
speculation and arbitrage;
use forwards Industry: Finance
Pricing and valuation of
and futures
forwards/futures (index, stock,
for hedging,
commodity etc.) Application for
speculation
and Financial Futures – 5-
arbitrage 286-109-PDF-ENG
Publication Year: 1986
Industry: Finance
11 NCP 1
6
Options Strategies 10, 11,
on Microsoft and 12, 15
& 19
Facebook Stocks (A)
ICMR Case ID:
FINC102
Publication Year:
2015
Options Strategies
on Microsoft and
Facebook Stocks (B)
Options: ICMR Case ID:
The fundamentals of options;
FINC101
Functioning of the options
Publication Year:
market;
ITM, ATM and OTM options; • Describing 2015
Factors effecting option prices; market
Options trading strategies mechanism of Options Strategies
(Long/short call, long/short options and on Microsoft and
put, long/short straddle, money-ness of Facebook Stocks (C)
long/short strangle, straps, options ICMR Case ID:
12- strips, covered call, protective
21 FINC100
put, bull call spread, bear put • Explaining
Publication Year:
spread, butterfly spread, condor various types of
2015
spread, box spread); Put-call option strategies
parity; Lower and Upper
boundaries of call and put • Conducting the Options Strategies
options; Valuation models of valuation of on Microsoft and
Options: Black & Scholes and options Facebook Stocks (D)
Binomial Option Pricing Models;
Option Greeks: (Delta, Gamma, ICMR Case ID:
Rho, Theta, Vega) FINC099
Publication Year:
2015
Options Strategies
for a Range-bound
Market
ICMR Case
ID:FINC173
Publication Year:
2021
22 NCP2
7
Note on Foreign 7
• Describing
Currency Swaps- (9-
the positions 292-043)
for fixed rate Publication Year: 2002
payer and Industry: Finance
fixed rate
receiver at
initiation Interest Rate Swaps:
Swaps:
and during
23- Swaps; Forward Rate A Deal Between B.F.
the life of
28 Agreements (FRAs); Currency Goodrich and
interest rate
Swaps; Interest Rate Swaps; Rabobank
swap and
Swap Valuation
currency
IBS Case
swap
• Designing
Development Centre
swaps ID: 111-078-1
• Conducting
the valuation
of swaps
22
COVID 19
• Understandi Pandemic-
Value at Risk (VaR): ng VaR Portfolio Value at
The VaR measure; Methods of • Measuring
29 Risk
VaR determination: Historical Value at Risk
method, Variance Covariance using ICMR Case ID:
Method, Simulation method various FM0027
methods Publication Year:
2021
Weather Derivatives:
• Understandi
Weather Derivatives:
ng basics of
i. Importance of weather 35 and
30 weather
derivatives Handout
derivatives
ii. DD scales
and their
iii. Using futures, options, and
mechanism
swaps on DD scales
Other aspects: • Understandi Handout
31 Credit Default Swaps; Forward ng other and
Rate Agreements etc. derivative 25&26
products
Honeywell Inc. and
• Appreciating
Overall idea of risk Integrated Risk
the
management Management
32 enterprise
Major Events: Product Code: 9-200-
risk
i. Future of derivatives 036-PDF-ENG
management
ii. Misuse of derivatives Publication Year: 2000
environment
Industry: Finance
8
Initial report: Understanding the derivatives traded on
the assigned exchange
Students are Interim report: Application of futures in hedging equity
Project divided into groups portfolio
11,2 Final report: Application of options in hedging equity
Work and each group is
2, (Templat assigned with an portfolio and determination of VaR for the equity
and e in exchange from portfolio.
33 Annexure Indian or
I) international 1) Assessing and anticipating market movements
markets. 2) Application of futures and options in hedging and
critical analysis of pros and cons of each instrument
3] Assessing VaR of the portfolio
Local/National/International Perspective: <Atleast 1 if relevant to the nature of course>
Session Mapped Topic(s) in

Article/Case/Minor Project Pedagogical Tool
No. Session Plan
News Items/Quotes on Exchange
1-10 Market Mechanism Websites/Understanding derivatives Group Discussion
traded across the global exchanges
SDG Sensitization: <Atleast 1 if relevant to the nature of course>

Topic Specific Learning Outcomes Pedagogical Tool
No. Session Plan
Be aware of the various financial risks
and their impact on corporate
Hedging using
1-22 performance to ensure sustainable Group Discussion
Derivatives
growth of the corporate which helps
economic growth
Data Based Insight: <Atleast 1 if relevant to the nature of course>
A dataset (at least one year) would be extracted from the mutual fund websites and organized commodity/stock
exchanges for price data. The same dataset would be used to determine optimal hedge ratio, to design option
trading strategies, to assess VaR etc.
Evaluation Parameters
Component Component Expected slot / Marks Weightage
Number due date declaration by
Test I 1 11th Session 13th Session 10
Test II 2 22nd Session 24th Session 20
Class Participation 3 Continuous 33th Session 10
Project Work 4 11, 22 and 33rd Before End 20
Session Term
Examination
End Term examination At the end of the semester 40
Total 100
9
Expectations from Students

a. Students must report to the respective sessions well before the announced time. Latecomers
will not be permitted to join the class after the scheduled time. If late, the attendance for that
session will be marked as absent.
b. Read the Case Study / material well prior to the class discussion. He/she is also expected to
read the chapter indicated in the course plan as the faculty directs.
c. In the class discussion student is expected to participate actively and contribute to individual
and group learning. Evaluation is based on active participation.
d. Evaluation is a continuous process at IBS. Every student needs to be aware of the timelines
given in the section below. Absence from these evaluations will mean non awarding of marks
in that particular component.
e. Each faculty has been given a scheduled consultation hour. Utilize this time to meet the faculty
and clarify doubts if any, seek explanations and get mentored if needed.
ANNEXURE - I
PROJECT TEMPLATE
Course: Financial Derivatives and Risk Management
Marks: 20
Digital Tools:www.moneybhai.com
https://web.sensibull.com
Software: MS Excel
Databases: www.nseindia.com
www.bseindia.com
10
www.mcxindia.com
www.icexindia.com
www.ncdex.com
Websites of international stock exchanges like NASDAQ, NYSE etc.
finance.yahoo.com
Objective: To enable the student to have hands-on experience on the key concepts learnt in financial
derivatives and risk management Course by applying the concepts to live/current/recent data so that
the learning loop in completed
1) Understanding market mechanism of derivatives exchanges
2) Assessing and anticipating market movements
3) Application of futures and options in hedging and speculation and critical analysis of pros
and cons of each instrument
4) Calculating Value at Risk (VaR) of the portfolio
Report Submission:
Students will be divided into group of 6 to 8 members. Each group will be assigned an exchange
where derivative contracts are traded either nationally or internationally.
Initial report: The report carries four marks and to be submitted by 11th session. It aims at enabling the
student understanding the market mechanism of derivatives contracts traded on the selected exchange in
terms of mainly
a. number and type of derivatives traded
b. expiry of contracts
c. tick size and lot sizes
d. underlying assets etc.
Interim report: The report carries seven marks and to be submitted by 22th session. Application of
futures in hedging equity portfolio (preferably a selected mutual fund scheme or customised portfolio)
covering
a. identification of underlying asset to be hedged
b. identification of suitable derivative instrument for cross hedging
c. determination of beta, minimum variance hedge ratio and optimal number of contracts for hedging
d. understanding how hedging helps in reducing risk through excel modeling etc.
Final report: The report carries nine marks and to be submitted by 33th session. Application of options in
hedging equity portfolio, option trading strategies and determination of VaR for the equity portfolio covering
a. assessment and anticipation of market movements
b. application of options in hedging and speculation
c. identification and application of suitable option trading strategies as per expected market
movements
d. critical analysis of pros and cons of futures and options in hedging and speculation
e. determination of VaR of the selected equity portfolio
Please note that

1. The above is the broad suggested structure of the report. It is appreciated if the student is able to
work more than suggested to improve the quality of the report and enhance learning.
2. Initial report is to be submitted in word format
3. Interim report and final report are to be submitted in excel and word report depending on the way
to be presented
11
4. Final report is a comprehensive report which includes even initial and interim report
***************End of FDRM Course Handout**********************
12
Course Handout
Program : MBA
Course Code :
Course Title : Financial Statement Analysis Semester: III
Faculty Name : Dr. K.Rajyalakshmi Room No: F-006
Consultation Hours (Day/time): Wednesday, 2:00-3:00pm
Mobile No: Email: rajyalakshmik@ibsindia.org

At the successful completion of the MBA Program, the students are expected to achieve the following outcomes.

PO-5 Ethics
PO-9 Employability
PO-10 Teamwork
Course Description:
This course provides students with the conceptual understanding of all the items in the Financial
Statements, alternative measurement methods, reporting and disclosure practices that are generally
governed by Accounting Standards (Both national and International). The course also demonstrates
the application of tools and techniques and skill required to amylase the financial performance of the
firm. The course would also enhance the critical thinking of the students with respect to analyses and
interpretation financial statements of all types of business entities. Topics covered in the course include
assets and liabilities sides of balance sheet, inter corporate investments, mergers and acquisitions, cash
flow analysis, deferred taxes, leases off the balance sheet debts, foreign currency transactions, ratio
analysis, EVA and window dressing.
Course Objectives:
• Appraise the fundamentals of measurement, reporting and disclosure of various elements that are
reflected in Financial Statements.
• Apply different national and International Reporting Standards that govern the Preparation and
Presentation of Financial Statements.
• To familiarize with the various tools and techniques required to assess and evaluate the
Performance and position of Companies.
• To develop insight into industry-based Reporting framework to analyze, evaluate and interpret
financial statements of all types of business entities
• To assess the financial health of business organization and evaluate the financial reporting quality.
• Synthesize the financial information provided in financial statements, analyze and interpret the
information for the purpose of decision making.
At the end of the course, the student shall be able to -
CLO-1.Apply the relevant skills to describe, measure and report and disclose the various items of assets,
liabilities and Equity in the Financial Statements
1
CLO-2.Evaluate different Financial Reporting practices and Standards that followed in India and internationally
with a focus on alternative accounting methods that affect the statements.
CLO-3.Apply skill set to critically analyze the financial statements by using various tools and techniques like
ratio analysis, common size statement and cross-sectional analysis.
CLO-4. Evaluate industry-based applications of reporting standards and demonstrate the ability to compare,
assess and evaluate the financial statements of banking, insurance and other companies etc.
CLO-5.Exhibit the ability to analyze and interpret financial statements and accompanying disclosures and to
identify of red flags.
CLO-6.Demonstrate the skill to comprehend, apply tools and techniques and interpret the information relevant
to the issue on hand and take pertinent decision.
Course Learning Program Outcomes Pedagogy Assessment

Outcomes (CLO) (PO)
CLO-1 PO-1, PO-9 Case Method, Ongoing Quizzes, Case
Project, and Lecture discussion, lecture,
Written examination
CLO-2 PO1,PO5,PO6,PO9 Case Method, Lecture, Focused listing, Case
On- going Project. discussion, and Written
examination.
CLO-3 PO1,PO7,PO9,PO12 Case Method, Excel Quizzes, Project Based

based active learning. assessment. Written
Examination
CLO-4 PO1,PO9, Case Method, Lecture, Case Method, Lecture,

Ongoing Project. Ongoing Project.
CLO-5 PO10,PO5,PO7 Case Method, Lecture, Focused listing, Case

Ongoing Project, discussion, Written
Integrative Learning. examination
CLO- 6 PO1,PO9,P12 Excel based active Project evaluation,

learning, Ongoing Written Examination.
Project, Case Method.

 International Financial Statement Analysis by Thomas R Robinson, Elaine Henry, Wendy L
Pirie and Michael A Broihahn 3th Edition. Wiley Publication

 The Analysis and Use of Financial Statements by Gerald. I. White, Ashinpaul. C. Sondhi and
Dov ,3th Edition. Wiley Publication
 Financial Statement Analysis.by John J.Wild, K. R. Subramanyam & Robert F. Halsey 2nd
Edition McGraw Hills (Publication)
Digital Resources:
(Proessor/Institute)
1. Ratio analysis
2
https://www.digimat.in/nptel/courses/video/110107073/L35.html
2. Cash flow
https://nptel.ac.in/courses/110107073/58
3. Financial reporting regulations
https://nptel.ac.in/courses/110107073/25
S. No. YouTube Video Title & Link Speaker/Event/Organization
1. What I Look For In Annual Reports Warren Buffett
https://www.youtube.com/watch?v=ajbJJGyjaOo
2. On 10 years of IFRS Hans Hoogervorst, IASB

https://www.youtube.com/watch?v=hynAcBugfCI
3. Free Cash flow is All You Should Care About Bill Ackman
https://www.youtube.com/watch?v=ZHQhXedaPl4
4. Basel III regulations Raghuram G Rajan

https://www.youtube.com/watch?v=EN27ZRe_28A
C] DATA INSIGHT:
S. Resources Weblink
No.
1. Prowess Database https://prowessiq.cmie.com/
2. Ministry of Corporate affairs https://www.mca.gov.in/content/mca/global/en/home.html
3. Institute of Chartered Accountants of https://www.icai.org/
India
4. IFRS https://www.ifrs.org/
D] OTHER RESOURCES:
1. Article
2. Report
3. Survey
4. News Item
Digital Tools:
Software/Packages: MS Office especially MS-Excel/ R/ Python/SAS/E-Views (whichever is applicable)
Sess Topic Session Learning Outcomes Articles Chapter Reading

No. (A)/Cases (C)/
Reports
(R)/Technical
Notes (T)
1– Introduction Describe the contents of Financial Chap – 1

2 to Financial Annual Reports Statement
3
Statement Describe the various Analysis: An

Analysis components of Financial Introduction;
Statements as Income
Statement, Balance Sheet, Cash Annual Report of
Flow Statement, Statement of any company;
Changes in Equity and Notes to
Accounts
HBS Note:
List the users of financial Financial
statements Statement
Describe the tools and Analysis
techniques needed to analyze
the financial statements.
3 Financial Describe the Importance of Chap – 3

Reporting Financial Reporting Standards,
and IFRS, Convergence and
Regulations Adoption of IFRS; Future
Perspectives
4 Analysis of Cash Flows from Operating, Understanding Chapter – 6:

Cash Flows Investing & Financing Cash Flow
Activities; Distinction between Statements;
the Direct Method and Indirect
Method; Accounting Profit Vs. Case: Statement
Cash Profits; of Cash Flows –
Three Examples
5 Analysis of Distinction between costs Chapter – 8

Inventories included in Inventories and
Costs recognized as expenses Merrimack AFM Course
in the period in which they are Tractors and Inventory Chapter
incurred; different inventory Mowers: LIFO or – AHM
valuation methods; (Lower of FIFO?
the two: Cost or NRV); LIFO
Reserve; LIFO Liquidation;
Impact on Incomes and
Financial Position
6– Analysis of Distinction between the costs Chapter – 9

9 Fixed that are capitalized and costs
Assets that are expensed in the period Depreciation at
in which they are incurred; Delta Air Lines:
Intangible Assets Acquired Vs. The "Fresh Start"
Internally Developed; and
Acquired in a Business
4
Acquisition – Goodwill;
Intangible Assets other than
Goodwill; Land securities A
Describe Fair value of good

will and test for impairment of
goodwill;
Compare Depreciation methods

and reporting practices; and
different amortization methods
of intangibles, impairment of
assets
Analysis of Understanding different types of Chapter – 14

Equity equity, different classes of shares;
10 importance of buy-back and ESOP
+ bought back shares as incentive
for managers, etc.
11 Test 1 Chapters
1.3.6.8.9.14
12- Analysis of Account and value the debt Non-Current Chapter – 10

13 Financing instruments and impact of (Long Term
Liabilities replacement of low cost debt Liabilities);
Including with older borrowings;
Contingent
Liabilities Case: Lyons
Apply theory and Amortize the Document Storage
Discount on Issue of Corporation:
Debentures; and premium at Bond Accounting;
the time of issue;
Case: Kim Park
14 – Leases and Describe Off Balance Sheet Chapter – 9 & 10

15 Off-Balance financing and
sheet debt
Describe lease accounting;
Differentiate between financial Magnet beauty
lease and operating leases and products
Measure the impact on

financial statements
16 – Analysis of Estimate the Fair Value of Chapter – 17

17 Inter- Investments in Debt Securities?
5
corporate Amortize Discount/ premium Note: Fair Value

Investments on issue of debenture, Accounting for
Investments in
Distinguish the different Types Debt Securities;
of Debt securities – for
reporting – TS, AFS and HTM
18 – Analysis of Account for Business Chapter: 14

19 Business combinations and estimate
Combinatio Goodwill or Capital Reserve + Note: Accounting
ns for Business
Combinations:
Acquisition
Distinguish the various Method;
methods of Accounting and
their implications on Financials
The Talbots, Inc.

and Subsidiaries:
Accounting for
Goodwill
20 Test 2 Chapters
9,10,14,17
21- Analysis of Understand the Concept of Deferred Taxes at Chapter – 13

23 Income Deferred Tax Asset and Obadiah Vineyard
Taxes Liability, importance of
deferred taxes and utility in
evaluation of firm;
Explain how deferred tax

liabilities and assets are created
and factors that determine the
same.
Measure and analyse the item

in Financial statements.
24 – Foreign Understand how Consolidation of Chapter: 15

25 Currency Balance sheet when subsidiaries
Transactions exist in other countries – using Note: Accounting
foreign currency statements; for Foreign
Operations;
6
Differentiate between transaction Case: Cosmeticos

risk and risk of translation; de Espana, S.A
(A)
Understand the implications of
Application of Current Rate
Method vs. Re measurement
Method;
Understand the Concepts of Local

Currency, Foreign Currency,
Reporting Currency; Functional
Currency
26 – Financial Understand and distinguish Financial Chapter – 7

27 Analysis between the various tools of Analysis
using Ratios FSA such as Ratios, Common Techniques
size financial statements,
Trends.
The Case of the
Unidentified
Apply the tools and techniques Industries-2018
219046-PDF-
to real data using CMIE
ENG
Database
Identify the firms by reading

ratios & linking the behaviour
of ratios with nature of business
28 Measure of The student should learn the

Performance process of EVA valuating the
using EVA firm from the perspectives of
Returns over Cost of Capital
for running the business
inclusive of risk for the equity
and debt holders;
29 – Quality of Why managers manipulate Evaluating Chapter: 17

30 Earnings accounting and disclose Quality of
Window differently?; earnings Financial Reports;
Dressing smoothening; activities that
result in low quality of
-Basics of earnings; Tools and techniques
forensic Quality of
used by practicing managers in Earnings
accounting disclosing and risks that the Analysis: Industry
shareholders may have to face Background Note
7
by David
Hawkins
31 Analysis of Distinguish the assets and

Bank liabilities in a Bank Statement
Financials vis a vis other companies;
List the items in Bank Financial

statements;
Describe the significance of

Basel Norms and Capital
Adequacy Ratios
32 Holistic Integration of
view of Financial
F.S.A Statement
Analysis
Techniques
33 Project review
Local/National/International Perspective: <Atleast 1 if relevant to the nature of course>

No. Session Plan
Accounting standards,
class discussion,
1 to 33 Accounting standards Ind AS,US GAAP and IFRS
cases, assignment and
project
SDG Sensitization: <Atleast 1 if relevant to the nature of course>

No. Session Plan
Holistic view of ESG and Corporate governance reports
32 Group Discussion
F.S.A
Data Based Insight: <Atleast 1 if relevant to the nature of course>
• 1 hour session devoted to Visualization of Descriptive and Associative phenomenon of data. The
discussion should include
• Identify a two companies in the same industry.
• Identifying the quantifiable financial variables (required from the decision
perspective) from Financial Statements using Prowess.
• Extracting the raw data
• Transforming the data (adjusting using the notes from Annual Reports)
• Cleansing the data - in terms of outliers and missing values
• Application of Tools & Techniques such as Ratios, common size statements
• Choice of an appropriate visualization tool and technique – 2d Charts, 3d Charts,
Box Plots, Frequency Plots, etc.
8
Evaluation Scheme and Timelines:

Keeping in line with continuous evaluation at IBS the following evaluation schedule has been drawn. Students
are expected to go through the dates / sessions mentioned and prepare accordingly.
Component Expected slot / Marks

Component Weightage
Number due date declaration by
Test - 1 1 11 12 15
Test - 2 2 20 22 15
Project Report 3 31-33 33 20
Class Participation 4 33 33 10
End Exam At the end of 40
the semester
Total 100
Expectations from Students:

a. Students must report to the respective sessions well before the announced time. Latecomers will not be
permitted to join the class after the scheduled time. If late, the attendance for that session will be marked
as absent.
b. Read the Case Study / material well prior to the class discussion. He/she is also expected to read the
chapter indicated in the course plan as the faculty directs.
c. In the class discussion student is expected to participate actively and contribute to individual and group
learning. Evaluation is based on active participation.
Use and Adoption of Software/Analytical Tools/Packages:

All the software/analytical tools/packages subscribed by the institute can be used widely for regular learning
and also project work. The institute offers access to various online databases through KNIMBUS platform. Any
other tools/packages to be used shall not infringe copyright of the provider.
Plagiarism policy:
Any infringement of copyright/patent/trademark is not appreciated and shall be viewed seriously. The students
are suggested to take proper help/support from the faculty members in this regard. So that they don’t get into
this infringement aspect knowingly/unknowingly.
Project Work/Report Guidelines:

The design thinking aspect has been a part of the project work in terms of giving flexibility to the students in
making the groups.
 Each student will be required to consider at least two companies for a minimal period of 2
years, selected from listed companies. One from manufacturing sector and one from Service
Sector. The allotment of the two companies will be done by the faculty to ensure independent
project work.
After every session, based on the concept learnt during the session, the student will have to collect
information on the companies selected and apply and analyse the information, use various tools and
techniques and draw partial inferences about the company health. At the end of the course, students
submit a 12 section Project Report.
The project will ensure continuous upgrading of knowledge and enhancement skill in sync with the
flow of the concepts and towards end result in a holistic understanding of the financial health of the
company.
****************End of Financial Statement Analysis***************
9
IBS Hyderabad (Academic Year – 2022-23)
Course Handout
Course Code :
Course Title : Fundamentals of FINTECH Semester : III
Faculty Name : Prof.Jyoti Kumari Room No : F207
Consultation Hours (Day/time):
Mobile No: 9848779770 Email: jyothi.chittineni@ibsindia.org

At the successful completion of the MBA Program, the students are expected to achieve the following
outcomes.

PO-5 Ethics
PO-9 Employability
PO-10 Teamwork
Course Description:
The Financial Technologies (FinTech) disrupted the entire financial sector in the last decade. The FinTech
disruptions are clearly visible in payments, online lending, financial markets, and insurance. The advances in
computational technologies, infrastructure, and availability of data provide promising opportunities to
transform the financial sector in the future. This course helps the students to enhance the conceptual
knowledge about the FINTECH disruptions and business opportunities. The courses project helps the students
to enhance the critical thinking by identifying the gaps in the existing business models, preparing a business
plan and present it to the team, this help to improve the written, presentation and analytical skills of the
students.
Course Objectives
The course is designed to…
• Provide the conceptual knowledge about the global and Indian fintech landscape, and equips on the
basic building blocks of fintech sector.
• Introduce the disruptive fintech start-ups, technology enablers and its impact on the traditional
financial products and users.
• Sensitize about the opportunities at Techfin companies and also the risks and challenges of the
technological transformations
Learning Outcomes
At the end of the programme the student shall be able to …………………..

Page 1 of 9
CLO-1: Understand role of FinTech in financial services sector
CLO-2: Comprehend the application of major technologies like Blockchain, Artifical intelligence,
Machine Learning, big data in Financial services
CLO-3: Exhibit the knowledge on business models of payment tech, lending, crowdfunding,
insurtech, wealth tech and Regtech companies
CLO4: Think critically and identify a gap in existing businesses in the financial sector, apply the
learnings from fintech and propose a solutions
Course Programme Pedagogy Assessment

Learning Outcomes
Outcome
CLO-1 PO1, PO9 Use cases,case studies Quiz-1, End term
and discussion, exam
CLO-2 PO9, Use cases case studies Quiz-2, End term
and discussion exam
CLO-3 PO1, PO9 Use cases , discussion Quiz-2,End term
and case method exam
CLO-4 PO1, Use cases, discussion and Project and End
PO2,PO9,PO10,PO11 case method term exam.
Digital Resources:
ACADEMIC/NPTEL/SWAYAM:
1 Introduction to Blockchain Technology and Applications Prof. Sandeep
https://nptel.ac.in/courses/106104220 Shukla
, IIT Kanpur
S. No. Online blogs and resources
1. https://www.coinbase.com/learn/crypto-basics/what-is-cryptocurrency
2. https://bitcoin.org/en/resources
3 https://a16z.com/2020/01/21/every-company-will-be-a-fintech-
company/
4 https://www.pwc.in/assets/pdfs/consulting/financial-
services/fintech/payments-transformation/the-indian-payments-handbook-
2020-2025.pdf
5 https://www.newsncr.com/business/sbi-yono-becomes-worlds-largest-neo-
bank-when-and-how-what-will-be-the-effect-on-common-man/
6 https://www.taylorwessing.com/download/article-funding-your-
fintech.html
7 https://rbi.org.in/Scripts/PublicationReportDetails.aspx?UrlPage=&ID=1187

Page 2 of 9
 Fintech Future : The Digital DNA of Finance by Sanjay Phadke; SAGE Publications India PvtLtd;
1st edition (5 March 2020)
Suggested reference books:

 Fintech: The New DNA of Financial Services by Pranay Gupta (Author), T. Mandy
Tham (Author) De Gruyter; 1st edition (3 December 2018)
 The FINTECH Book: The Financial Technology Handbook for Investors, Entrepreneurs and
Visionaries by Susanne Chishti (Author), Janos Barberis (Author) Wiley; 1st edition (1 April
2016);
 The Future of Finance: The Impact of FinTech, AI, and Crypto on Financial Services by Henri
Arslanian & Fabrice Fischer (2019)
 The Future of FinTech Integrating Finance and Technology in Financial Services, by
Bernardo Nicoletti, Springer, 2017.
Case
/Reading
Session Learning Cha
Topic Key Concepts article/
No. Outcomes pters
Lecture /
Activity
FinTech evolution,
Traditional banking Understand the
and modern short history of
Introduction to banking business fintech industry,
01 FinTech Enabling The effect of Ch-1
landscape technological digital
changes and technologies
changing customer
expectations
Understand the
new entrants in to
the banking
Fintech ecosystem, business,
business model, landscape of new
Ch-
Fintech enabling fintech
02-03 2,3&
Ecosystem technologies and ecosystem, 4
government participants,
regulations business models,
role of technology
and role of
regulators
To learn the Bitcoin: The
Evolution of basics of Future of
crypto assets cryptography and Digital
Crypto-assets encryption, and Payments? Ch-
Crypto asset as an
14,
04-5 and their application of how crypto hand
ecosystem - I blockchain currencies were  Product outs
technologies developed from #: 714519-
cryptography and PDF-ENG
encryption
Page 3 of 9
6-7 Block chain A technical https://www.i

technologies Introduction To understand bm.com/clou
And architecture of technical d/architecture hand
Blockchain and its architecture of /architectures outs
working , blockchain /blockchainA
characteristics rchitecture/
Bitcoin
Product
To study the
#: W14336
Crypto currency proliferation of
-PDF-ENG
proliferation, crypto-assets,
Crypto-assets taxonomy, and distribution,
Ripple: The hand
8-10 and their trading crypto exchange
Business of outs
ecosystem - II assets mechanisms, and
Crypto
Cryto Exchanges taxonomy of
Product
and the types crypto-assets.
#: 719506-
PDF-ENG
11 TEST-1
Technology
revolution 4.0
Artificial
Intelligence and
Machine learning
IOT and smart
devices
Wearables and
augmented Understand the
Disruptive
humans disruptive
technologies and its
12-15 technologies and BIG data and application in the
financial services
augmented financial services
analytics industry
Cloud and Edge

computing
Digital twins
NLP
Voice interface
and chatbots
Page 4 of 9
Computer vision
and facial
recognition
Digital platforms
National
Payments
Corporation
of India:
Cutting-Edge
Fintech
Ecosystem
Innovation in
Payment gateways, India
bank APIs To identify the Product
New business new changes in #: W21211
New entrants to
model PaaS the payment -PDF-ENG
banking-digital
landscape, new
payment ,
16-17 Neo banks, business and Paytm: Ch-5
payment challenger banking revenue models Accelerating
gateways and and ibanking and the use cases Growth
PAAS Innovative ways of in Indian payment through
sending money apps Diversificatio
n
 Product
#: W18218
-PDF-ENG

To learn the
digital lending
Zopa: The
applications,
Power of
Landscape of Peer to peer revenue model.
Peer-to-Peer
digital lending lending platform, Challenges and
18-20 Lending Ch-6
and business business models future
models and challenges opportunities for
 Product
the lending
#: 709469-
business
PDF-ENG
Page 5 of 9
Disintermedi
ating the
Banks:
ThinCats and
the Peer-to-
Peer Lending
Industry
 Product
#: 217007-
PDF-ENG
The Unique
Value of
Crowdfundin
g Is Not
Money - It's
Community
 Product
Alternative to VC #: H02TTR
and IPO, To learn to -PDF-ENG
Crowdfunding evaluate the
Crowdfunding Ch-
and business models, market potential 7,8,9.
21-22 crowinvesting ICO, social crowdfunding -A funable 11&1
investing and key investing and the reward to 2
crowdfunding business models localstake
platforms colothing
manufacture
r use case
-A
tomozwing
adventure
with
companisto
Arthayantra:
To develop a Ushering in a
deeper Digital
Robo advisory Robo advisory ,
understanding on Revolution in
and landscape changes in
the changing Personal
of digital wealth advisors, changes
landscape of new Financial
advisory in data analytics, hand
23-24 generation Advisory
social investing , outs
services investors and the Services
changes in
role of advisory
customer
services in the  Product
expectations
digital era #: IMB785
-PDF-ENG
Page 6 of 9
The
Wealthfront
Generation
Product
#: 216085-
PDF-ENG
Roboadviso
r-5paisa to 9
cr story of A
roboadvisor
25 Test-2 assignment on FINTECH startup
Lemonade:
Disrupting
To understand the
Insurance
Peer to peer drivers for the
with Instant
insurance, changes new products
Everything,
in the insurance developments,
Killer Prices,
Raise of business model and new business
and a Big Ch-
26-27 insurtech new product models, role of
Heart 13
development , role the technology in
of wearable’s and the digital
its application, IOT  Product
insurance
in insurance #: 520020-
platforms
PDF-ENG
RegTech: A
New Way to
Regulatory .To learn a Manage
technologies landscape of Risks
evolution regtech,
Cyber security specialties and the Ch-
28-29 challenges and  Product
and regtech new ways of using 16
identification and regulators support #: 122004-
fraud detection and for the future of PDF-ENG
rescue regtech
Role of
technologies in To understand the
The application changing the future of financial
of big data, financial service services industries Ch-
30
artificial and Future of in flash with 4G 15
intelligence , IOT Finance with 4G and 5G
and 5G technologies
technologies
31-33 Group Presentations by a team of 4, and each
presentations presentation for 15 minutes
Page 7 of 9

a. Students must report to the respective sessions well before the announced time. Latecomers will not
be permitted to join the class after the scheduled time. If late, the attendance for that session will be
marked as absent.
c. In the class discussion student is expected to participate actively and contribute to individual and group
learning. Evaluation is based on active participation.
Evaluation Timelines
Keeping in line with continuous evaluation at IBS the following evaluation schedule has been drawn.
Students are expected to go through the dates / sessions mentioned and prepare accordingly.
S. No. Component Weightage Evaluation

1 CP – 1 10% 30th Session
2 Test-1 15 % 11th Session
3 Test-2 15 % 21st Session
4 Group project 20 % 25th Session
5 End term exam 40%
Total 100
Project details:
• Project : “ FINTECH Business idea”
• Group : 4 students
• Report submission: Complete business plan including gap identification, technical feasibility,
operational feasibility, demand analysis ,financial plan, revenue model, marketing strategy
• Presentation: presentation should focus to answer the following questions
• Gap identification/ need justification/demand for the product/uniqueness in the product
• Product details- technical and functional
• Financial plans
• Target customer demographics
• Revenue model
• Marketing strategies
Local/National/International Perspective :
 Use cases are from Indian Fintech companies

 Cases studies are from International companies
Page 8 of 9
SDG Sensitization:
Goal8: Contribution of FINTECHs growth for the Economic growth
Page 9 of 9
Course Handout
Program MBA Semester III
Course Title Banking Management Course Code SLBK 605
Faculty Name D. Sreenivasa Chary Room No F-208
Mobile No 9849709741 Email dschary@ibsindia.org

On successful completion of the MBA Program, the students are expected to achieve the following outcomes.
PO-1 Critical Thinking PO-7 Self-directed and Life-long Learning
PO-2 Effective Communication PO-8 Initiative/Leadership
PO-3 Social Interaction PO-9 Employability
PO-4 Effective Citizenship PO-10 Teamwork
PO-5 Ethics PO-11 Cross-Functional Skill Development
PO-6 Environment and Sustainability PO-12 Demonstrate Mastery in Analytics
Course Description:
The course covers all the facets of Indian banking in brief. The course has been devised to enable the
management students to have exposure to banking operations. Banking has become an integral part
of every one’s day to day life. Hence awareness of banking products and services is required by all
students whether they take up banking as their career or not. The course coves the primary and
secondary functions of Banks like accepting of deposits, lending, investment and other services like
remittances, collection of cheques, Bills, lockers, online merchant banking services etc. The course is
periodically vetted by the industry experts, to update the course contents, as per industry
requirements
Course Objectives:
 Portray the Indian Banking system, its constituent elements and regulatory environment.
 Provide insights about various types of customers, deposit and loan products, negotiable
instruments, cash management and Para banking services provided by banks.
 Outline different types of banking like, Personal Banking, Retail Banking, Corporate
Banking, SME Banking, Rural Banking, Microfinance, etc.
 Appraise the importance of recovery bank loans, to minimize provision on loans and increase
profitability.
 Identify appropriate preventive, remedial and legal measures of recovery.
 Relate BASEL norms for financial stability of Banks

At the end of the course, the student shall be able to –
CLO-1. Enhance their knowledge related to banking and equip the required capabilities for
assuming the position of a bank executive.
CLO-2 Assess credit proposals for retail and SME loans
CLO-3 Comprehend various types of risks associated with banking business
CLO-4 Appreciate the importance of recovery of loans for profitability of banks
CLO Program Outcomes Pedagogy Assessment

CLO-1 PO-8, PO-9 Lecture, Excel Workbooks Quizzes, Assignments
CLO-2 PO-1, PO-2, PO-3, PO-11 Lecture, Case Method, Excel Workbooks Case Analysis
CLO-3 PO-1, PO-2, PO-5, PO-6, Case Method, Excel Workbooks, Data Project Report &
PO-10, PO-12 Based Insight Presentations
CLO-4 PO-8, PO-9, PO-10, PO- Case Method, Excel Workbooks, Practice Problem Solving, Live
11. Insight Videos Projects
1

 Banking Principles and Operations: by M.N. Gopinath 7th Edition, Snow White
Publications

 Bank Management & Financial Service: by Peter S Rose and S C Hudgins, 8th edition, Mc
Graw Hill Education (India) Pvt Ltd
 Commercial Bank Management: by Kanhaiya Singh & Vinay Dutta, 1st Edition, Mc Graw
Hill Education (India) Pvt Ltd
Digital Resources:
S. No. Course Title & Link Proposed by (Professor/Institute)
1. Free Online Course: Fundamentals in Banking and Savitribai Phule Pune University
Insurance ... https://www.classcentral.com
2. Management of Commercial Banking Prof. Jitendra Mahakud, IIT
https://onlinecourses.nptel.ac.in Kharagpur
S. No. YouTube Video Title & Link Speaker/Event/Organization
1. Monetary Policy Statement 2022 Governor, RBI
https://www.youtube.com/watch?v=NyWxYFe8slU
2. Fintech &Future Banking Bindu Kandarpa, Senior Vice President
https://www.youtube.com/watch?v=r7Z-xSZpaFA Standard Chartered Bank
C] DATA INSIGHT:
1 Reserve Bank of India. ( Statistical tables relating to banks Rbi.org.in
2 Prowess Database https://prowessiq.cmie.com/
3 Indian Institute of banking & finance https://www.iibf.org.in
4 Ministry of Finance https://finmin.nic.in
5 Money Control https://www.moneycontrol.com
6 Stock Reports / Stock Screeners https://trendlyne.com
D] OTHER RESOURCES:
1. Bank Quest (Articles) http://www.iibf.org.in/
2. RBI Annual Report Rbi.org.in
3. Trends & Progress in banking Rbi.org.in
4. RBI Master Circulars / Directions Rbi.org.in
Digital Tools:
Software/Packages: MS Office especially MS-Excel (whichever is applicable)

S.No TOPIC Learning Outcome Case /Reading article/ Ch
Lecture / Activity
1 Organization and  Describe the overview of banking Evolution of banking in
Functions of system in India India: RBI Web Site
Banks in India  Differentiate between public and RBI Master Directions-
private sector banks, RRBs and (Financial Services provided
. Local area Banks, by Banks) Directions, 2016
RBI/DBR/2015-
2
 Explain the functioning of different 16/25.Master Direction/ 2

types of banking groups and DBR. FSD. No.101/
Banking Channels. 24.01.041/2015-16
 Conversant with the latest (Updated as on 25.09. 2017)
consolidation of Banks in India
2 Bank  Identify the asset and liabilities Activity: Analysis of Bank
Profitability & of a bank Balance sheet (Balance
Viability  Calculate NII, NIM, Burden, sheets available in Bank 22,
Spread, productivity, CASA websites)
ratio, CD ratio etc.
 Comprehend the Profit Equation
of Banks.
 Employ Fundamental analysis, to
assess the financial position of a 29
Bank
3-4 Liquidity  Understand the importance of RBI Master Circulars
Management in liquidity and solvency in Banks. 1. CRR, SLR. RBI/2015-
Banks Analyze the Asset Liability 16/98
statements in Banks- structural DBR. No. Ret. BC.
liquidity and dynamic liquidity 24/12.01.001/2015-1.
 Compute the NDTL of Banks. 2. Facility for Exchange of
 Comprehend the rationale behind Notes and Coins.
the maintenance of . CRR and RBI/2019-20/02. DCM
SLR. (NE) No. G-
 Compute CRR, SLR 2/08.07.18/2019-20.
 Significance behind the 3. Detection and
maintenance of Cash limits at the Impounding of
branch level. Counterfeit Notes:
 Conversant with the Clean note RBI/2019-20/01 DCM
policy of RBI, and rules (FNVD) G –
regarding the exchange of cut 1/16.01.05/2019-20
and soiled notes.
5-6 Retail Banking  Recall the various deposit, credit Visit to websites of Banks
Products and and service-oriented retail RBI Master Directions -
services banking products Deposits and Accounts
 Distinguish between the different RBI/FED/2015-16/9
types of deposit and credit FED Master Direction No.
products. 14/2015-16 (Updated as on
 Describe the salient features of 09.01.2020)
Non-Resident accounts. (NRO,
NRE and FCNR accounts)
 Explain salient features of
Resident Foreign Currency
accounts (RFC, RFC (D), EEFC,
DDA accounts)
 Conversant with the ancillary
services offered by banks like
lockers, cheque collection,
plastic cards, clearing, remittance
facilities etc.
7 Pricing Deposits  Illustrate pricing of various deposit RBI Master Direction - 9-10
and Advances products Interest Rate on Deposits.
 Calculate Interest rates paid on Directions,2016
different types of deposits RBI/DBR/2015-16/19.
 Explain significance of Deposit Master Direction DBR. Dir.
mix No.84/
3
 Define and explain the components 13.03.00/2015-16. (Updated

of PLR, BPLR, Base rate and as on February 22, 2019)
MCLR. RBI Master Direction -
 Illustrate the pricing mechanism for Interest Rate on Advances
loans Directions, 2016.
RBI/DBR/2015-16/20
Master Direction DBR. Dir.
No.85/13.03.00/2015-16
(Updated as 26,.02.2020)
8 Know your  Explain the significance of the four RBI Master Directions: 3-6
Customer: Policy pillars of KYC norms for opening KYC Norms
& Anti-money and operating the deposit accounts. RBI/DBR/2015-16/18
laundering  Conversant with the different types Master Direction DBR.
Norms. of customers, their relationship AML. BC. No. /14.01.001/
with the Bank and the resultant 2015-16 (Up dated up to
legal obligations 20.04.20)
9-10 Bank Deposit  Describe the various types of Indian Bank Policy on Bank
Policy deposit products Deposits 2020-21
 Appreciate operational matters https://www.indianbank.in/w
like mode of operations, p- content/ uploads/2020/ 05
nomination facilities, TDS, /Policy-on-Deposits-and- 4-5
premature closure, Renewal, Unclaimed-Deposits.pdf
Death claim settlements, Deposit Comprehensive Deposit
insurance. Policy of HDFC Bank
https://v1.hdfcbank.com/asse
ts/pdf/Comprehensive_Depos
it_Policy.pdf
11 Test -1  Sessions 1 to 10 Chapters: 2,3,6,7,22,29
12-13 Banks Rights &  State the rights & duties of a ICMR Case:
Duties banker: Lien, Set off, Banker-Customer
Appropriation; Duty to honour Relationship. 7
cheques, /duty of Secrecy B-OOB0010
 Appreciate the rights and
obligations of customers
 Understand various Banker
customer relationship
 State the procedure to taken
action for Wrongful dishonor of
a cheque and bouncing of a
cheque for want of funds,
14-15 Negotiable  Explain, the salient features of Cases: 7

Instruments negotiable instruments, tenor of a 1) Negotiability -
cheque, Crossings and ICMR :(B-OOB0008)
endorsements 2) Is a Negotiable
 Payment in due course, instrument Act a boon?
bouncing of a cheque – criminal ICMR –B-OOB0011
liability.
 Differentiate between the
concepts of Holder and Holder in
due course
16 Credit  Explain the typical aspects of bank Activity: 17
Management lending that is essential to legally Examine the essential
( Basics) protect the interests of banks elements related to Bank
 Differentiate hypothecation, documentation.
4
pledge, mortgage, assignments.

 Explain the significance of
stamping the documents and
registration of charge
17 Bank Credit  Examine the significance of RBI Master Circular – 16,
Policy credit policy in Banks. Exposure Norms.
 Appreciate RBI’s prudential and RBI/2015-16/70, BR. 17
exposure norms and other No.ir.BC.12/13.03.
statutory norms for dispensation 00/2015-16
of credit RBI Master Circular-
Loans and Advances –
Statutory and Other
Restrictions. RBI/2015-
16/95, DBR. No. Dir.BC.10/
13.03.00/2015-16
18 IRAC Norms  Comprehend the IRAC Norms RBI Master Circular - 16,
and solve the problems related Prudential norms on
to the same Income Recognition, Asset
Classification and
Provisioning pertaining to
Advances
RBI/2015-16/101, DBR. No.
BP.BC.2/21.04.048/2015-16
19 Priority Sectors.  Describe the concept priority RBI Master Direction - 17
sector lending in Indian banking. Priority Sector Lending –
 Elucidate the structure and Targets and Classification 18
performance of rural banking/ (A) Commercial Banks.
microfinance sectors in India. RBI/FIDD/2016-17/33 19
 Appraise, Financial inclusion, Master Direction
BC/BF models, and SHGs FIDD.CO.Plan.1/04.09.01/20
 Define MSME 16-17. Updated as on
 State the problems and prospects December 05, 2019
of MSME lending in India Master Circular on SHG-
 Determine working capital Bank Linkage Programme
finance for MSMEs RBI/2019-20/08
FIDD.FID.BC.
No.05/12.01.033/2019-20
RBI. Master Direction -
Lending to MSME Sector
RBI/FIDD/2017-2018/56
Master Direction
FIDD.MSME &
NFS.12/06.02.31/2017-18
(Updated as on April 25,
2018)
20 Retail Credit  Assess the credit needs of retail HBS Case:
consumers and salaried class. Salary Finance. 9-720-355
21-22 Working Capital  Analyze the Balance sheets of Practical Exercises on Trade
finance traders and make Ratio analysis credit
 Assess the working capital
requirements of corporate
proposals
 Assess the working capital needs
of traders using Tandon
committee method No-1, Method
5
No II
23 Test-2  Sessions: 12 to 21 21
24 Corporate  Explain the features of corporate RBI Master Circular-

Banking banking Loans and Advances –
 Conversant with the “Loan system Statutory and Other
for delivery of Bank Credit” Restrictions. RBI/2015-
17
 Distinction between Consortiums, 16/95, DBR. No. Dir.BC.10/
Multiple banking, Loan 13.03.00/2015-16
syndication. HBS CASE: Note on the
Leveraged Loan Market.
9-214-047
25 Non-Fund Based  Explain the different types of non- Case:
Services fund-based limits like BGs, LCs, Bank Guarantee -
LOC and LOU Precautionary measures. 21
 Assessment of credit limits for L.C ICMR B-OOB0015
and B. G
26 International  Define global banking RBI Master Direction - 21
Banking  Distinguish, Nostro, Vostro and Liberalized Remittance
Loro accounts Scheme (LRS)
 Appreciate the risks in RBI/FED/2017-18/3
international trade FED Master Direction No.
 Define offshore banking, tax 7/2015-16. (Updated as on
havens June 20, 2018)
 State the salient features of; Money RBI Master Direction -
Transfer Service Scheme, Other Remittance Facilities
Liberalized Remittance Scheme, RBI/FED/2015-16/4
Outward Remittances FED Master Direction No.
 Depict Foreign Investments in 8/2015-16.(Updated as on
India November 6, 2018)
27 Banking and Explain new technology-oriented; Article: Impact of 10
Technology channels like mobile banking, online Technology in Banks- Bank
banking, remittance facilities like Quest- Oct-Dec-2010) 15
RTGS, NEFT and IMPS, MICR and HBS Case: PayPal: The
CTS cheques etc. Next Chapter. 9-721-378
28 Para Banking Explain various types of Para RBI Master Circular -

Services banking business that aid the income
10
Para-banking Activities
of banks and provide a variety of RBI/2013-14/61 DBOD.
service platforms No.FSD.BC.05/ 14
24.01.001/ 2013-14
29-30 Recovery  Describe the importance of Activity: 16
Management recovery management. The student shall compare
 State the different method of and contrast, the following 17
recovery of Loans. (Preventive, methods of recovery of Bank
Remedial and Legal measures of loans
recovery) 1. Filing suit in the court of
 Explain the role of; Courts, DRT, law.
Lok Adalat, SARFAESI Act, in 2. Submitting a petition
recovery of loans. before DRT
 State the salient features of 3. Resorting to Lok Adalat
Bankruptcy laws in India. 4. Enforcing SARFAESI
 Explain the procedure of nursing & Act
rehabilitation of sick units
6
31 Customer  State the significance of customer RBI Master Circular on 23

Service in banks service in banks, and the Customer Service in Banks.
recommendations of Talwar, RBI/2015-16/59, DBR No.
Goiporia & Damodaran Leg.
Committees. BC. 21/09.07.006/2015-16
 Explain the salient features of
Ombudsman scheme and
Consumer Forums
32 Risk  Appreciate banking sector risks Case: Risk management at 26
management in  Explain BASEL norms, CAR and Wellfleet bank- all that
Banks regulatory capital glitters is not gold HBS:9-
110-011
33 Supervision and  Describe the onsite and offsite Reading Material:
Performance surveillance of banks 1. Excerpts from “Report
evaluation of  Apply CAMELS rating for Trends and Progress of
Banks, in India performance evaluation of Banks Banking in India 2018-
 Describe Prompt Corrective Action 19” (Balance sheet and 25
by RBI P&L account of Banks,
 Analyze the financial Stability Cost and Return on
Report-2019 funds, ROA, ROE,
Capital funds. NPA)
2. Financial Stability
Report- 2019
https://rbidocs.rbi.org.in/
rdocs/PublicationReport/
Pdfs/FSRJUNE2019E5E
CDDAD7E514756AFEF
1E71CB2ADA2B.PDF
Local/National/International Perspective:

No. Session Plan
26 International Banking Current Exchange rates sheet of a Bank Simulation

Case: Risk management at Wellfleet
Risk Management in
32 bank- all that glitters is not gold HBS:9- Discussion
Banks
110-011
SDG Sensitization:

No. Session Plan
19 MSME Lending Affordable and Clean Energy Group Discussion
Data Based Insight:

Evaluation of Performance of Banks using the data available from RBI web site. (Statistical tables relevant to
banks in India.)
.
Keeping in line with continuous evaluation at IBS the following evaluation schedule has been drawn. Students
are expected to go through the dates / sessions mentioned and prepare accordingly.
Component Component Expected slot Marks Weightage

7
Number / due date declaration by

Test - 1 1 11 13 15
Test - 2 2 23 25 15
Project Report (On going) 3 15 / 30 17 / 33 20
End Exam At the end of the semester 40
Total 100

a. Students must report to the respective sessions well before the announced time. Latecomers will not
be permitted to join the class after the scheduled time. If late, the attendance for that session will be
marked as absent.
c. In the class discussion student is expected to participate actively and contribute to individual and
group learning. Evaluation is based on active participation.

All the software/analytical tools/packages subscribed by the institute can be used widely for regular learning
and also project work. The institute offers access to various online databases through KNIMBUS platform.
Any other tools/packages to be used shall not infringe copyright of the provider.
Plagiarism policy:
Any infringement of copyright/patent/trademark is not appreciated and shall be viewed seriously. The students
are suggested to take proper help/support from the faculty members in this regard. So that students don’t get
into this infringement aspect either knowingly/unknowingly.

 A group of Projects are suggested to the students in a Google sheet.
 Each student can select a project of his / her choice.
 The projects are normally related to performance of banks, interbank comparison, calculation of Base
rate, Calculation of CAR, Camel rating of banks, NPA position of banks etc.
 The students are supposed to cull data from authentic sources like RBI/IBA/ IIBF etc.
 A part submission of the report is done at the end of 15th session and the final report is to be submitted
at the end of 30th session.
***********************End of Banking Management ***********************
8
Course Handout
Program MBA Semester III
Course Title Corporate & SME Banking Course Code SLBK 609
Faculty Name D. Sreenivasa Chary Room No F-208
Mobile No 9849709741 Email dschary@ibsindia.org

On successful completion of the MBA Program, the students are expected to achieve the following
outcomes.
PO-1 Critical Thinking PO-7 Self-directed and Life-long Learning
PO-2 Effective Communication PO-8 Initiative/Leadership
PO-3 Social Interaction PO-9 Employability
PO-4 Effective Citizenship PO-10 Teamwork
PO-5 Ethics PO-11 Cross-Functional Skill Development
PO-6 Environment and Sustainability PO-12 Demonstrate Mastery in Analytics
Course Description:
A credit proposal properly appraised ensures minimum 50% recovery without any efforts. The
course intends to provide knowledge and skill required to assess the credit proposals of MSME and
Corporate borrowers. The need and importance of compliance with the statutory guidelines /
regulations while lending to corporate and MSM clients is well emphasized in the course. Right from
the stage of entertaining an application for advance, the minute details relating to credit appraisal,
assessment of credit limits, documentation, charge creation and charge registration, ensuring the end
use of bank finance, post sanction following up, preventive, remedial and legal measures of recovery,
adequate provisioning of loan accounts based on IRAC norms, rehabilitation of sick units, credit risk
management are all covered exhaustively. The course intends to provide working knowledge of a
credit officer of a Bank, to enable the students get inducted in banks as specialist credit officers.
Course Objectives:
 Portray the risks involved in credit dispensation and understand the importance of due
diligence in sanctioning the credit limits.
 Provide insights about various types of customers, loan products (Fund based and non-fund
based), provided by banks.
 Impart required skills to appraise and assess fund based and non-fund-based credit proposals
 Appreciate the importance of recovery bank loans, to minimize provision on loans and
increase profitability.
 Identify appropriate preventive, remedial and legal measures of recovery.
 Relate BASEL norms for risk management of Banks

At the end of the course, the student shall be able to –
CLO-1. Comprehend the various credit appraisal processes
CLO-2 Assess credit proposals for Corporate and SME loans
CLO-3 Infer various types of risks associated with credit dispensation
CLO-4 Classify the loans and advances in to performing and non-performing assets for the
purpose of provisioning
CLO-5 Appreciate the importance of recovery of loans for profitability of banks
1
CLO Program Outcomes Pedagogy Assessment

CLO-1 PO-7, PO-9 Lecture, Excel Workbooks Quizzes,
Assignments
CLO-2 PO-1, PO-2, PO-3, Lecture, Case Method, Excel Case Analysis
PO-11 Workbooks
CLO-3 PO-1, PO-5, PO-6, Case Method, Excel Workbooks, Project Report &
Data Based Insight Presentations
CLO-4 PO-1, PO-7, PO-8, Case Method, Excel Workbooks, Problem Solving,
PO-9, PO-10, PO-11. Practice Insight Videos
CLO-5 PO-1, PO-2, PO-3, Case Method, Practical insights Problem solving,
PO-6, PO-10. Live projects

 BANKER'S HANDBOOK ON CREDIT MANAGEMENT (IIBF), 2018 EDITION, Author: IIBF,
Publisher: TAXMANN,

 CREDIT APPRAISAL, RISK ANALYSIS AND DECISION MAKING: By D.D.MUKHERJEE,
SNOWWHITE PUBLICATIONS PVT LTD
 CREDIT MANAGEMENT: IUP Publications, Hyderabad
Digital Resources:
(Professor/Institute)
1. Corporate Banking Corporate Finance Institute
https://www.youtube.com/watch?v=fn7WNxyaBA0
2. Understanding SME Banking A Panel discussion
https://www.youtube.com/watch?v=OpYYJD3ypN0
Sl. YouTube Video Title & Link Speaker/Event/Organization
No.
1. Monetary Policy Statement 2022 Governor, RBI
https://www.youtube.com/watch?v=NyWxYFe8slU
C] DATA INSIGHT:
1 Reserve Bank of India. (Statistical tables relating to Rbi.org.in
banks
2 Prowess Database https://prowessiq.cmie.com/
3 Indian Institute of Banking & Finance https://www.iibf.org.in
4 Ministry of Finance https://finmin.nic.in
D] OTHER RESOURCES:
1. Bank Quest (Articles) http://www.iibf.org.in/
2. RBI Annual Report Rbi.org.in
3. Trends & Progress in banking Rbi.org.in
4. RBI Master Circulars / Directions Rbi.org.in
2
Digital Tools:
Software/Packages: MS Office especially MS-Excel (whichever is applicable)

Sl.No TOPIC Learning Outcome Case /Reading Ch
article/ Lecture /
Activity
1- 2 Introduction to Comprehend the basic Note on Bank Loans
Credit Requirements for Lending, Cardinal (9-291-026)
Management Principles of lending, Various
Credit Products etc.,
3 Principles of Recite the Principles of Credit Note on acquiring
Credit Management, methods of Bank credit
Management evaluation of Borrowers like, 6Cs, ( 9-391-010 )
4Ps, Fair Practices
4 Objectives of State the objectives of credit
Credit management like; Credit
Management Allocation, Credit Evaluation,
Credit Discipline Credit
Monitoring.
5-6 Credit Policy in Infer the credit Policy of RBI, the *Monetary & Credit
Banks need for credit policy, significance Policy.
of credit policy for banks, *Exposure Norms@
components of credit Policy,
exposure Norms, delegation of
powers, credit culture.
7 Credit Describe the role of bank credit, Lending to priority
Deployment types of credit facilities, credit sector advances
deployment to various sectors, types
of borrowers, targets for priority
sector advances
8 Credit Products Enumerate the different types of
fund based and non-fund based
credit products provided by banks
to corporates and MSME sectors.
9 Types of Compare and contrast the different How to negotiate a
Corporate types of corporate and project term loan
Lending. finances like; Loan Syndication, ( HBR- 82201 )
Multiple Banking, Consortium
finance, Infrastructure finance, Take
out financing etc.
10 Corporate Credit: Explain the precautions to be taken
Due diligence by while financing the corporate credit
banks proposals, and appreciate the need
for credit rating /credit scoring
charts /CIBIL caution list etc.,
11 INTERNAL EVALUATION – I
12-14 Analysis and Analyze the financial statements of Introduction to

Interpretation of the borrower clients after Financial Ratios and
financial segregation of items under proper Financial statement
statements heads of accounts. Analysis. ( (9-193-029
3
)
Interpret financial ratios for credit The case of the
decision by the competent authority. unidentified Health
care companies-2010
( 9-611-043 )
15-17 Evaluation of Assess the term loan proposal Assessing a
loan proposals whether to sanction or reject the company’s Future
credit facility requested for. Financial Health ( 9-
911-412)
Evaluate the working capital Advanced Medical
proposals, and the non-fund-based Technology
credit proposals to take a suitable corporation ( 9-287-
credit decision. 028 )
Illustrate the Export and Import Note on International
Finance procedures and explain the Trade- (9-211-007)
various methods of payment in
international trade.
18 Define the micro, small medium

Introduction to and large enterprises, classify them
MSME finance. properly, and explain the need for
finance
19 MSME Policy Summarize the Policy frame work Lending to Micro,
for SMEs, and appreciate the role of Small and Medium
SIDBI in promoting the MSMEs Enterprises sector
&
Lending to priority
sector advances
20 Means of credit to Explore the various sources of

MSMEs Finance to MSMEs, and be
conversant with the institutional
support to MSMEs
21-22 MSME proposals- Appraise and assess the credit limits
Credit appraisal to MSME borrowers as per the Turn
over method. Based on Nayak
Committee Recommendations.
(Term loans, cash credit /overdrafts,
Bill finance and non-fund-based
credit limits,
23 Precautions to be Infer the precautions to be taken
taken while while financing the MSME, and list
lending MSMEs the dos and don’ts.
24 INTERNAL EVALUATION – II
25 Statutory Conversant with the statutory Loans and Advances –
provisions for provisions / restrictions / guide lines Statutory and Other
lending issued by RBI in respect of various Restrictions
loans and advances; and the fair
practices code for lenders.
26-27 Documentation Well versed with the need and
importance of documentation.
provisions of The Indian Contract
4
act, Banker’s books of evidence act,

Stamp act, Limitation act as
applicable to documentation.
28-29 Credit Monitoring Appreciate the various preventive
Follow-up and measures; like Post sanction follow
Recovery up, ensuring end use, Credit Audit –
Loan Review mechanism,
identifying the problem loans,
dealing with willful defaulters etc.
Acquaint with the alternate
remedial measures for recovery of
loans like;
periodical review and renewal of
credit limits, obtention of AODs /
Letter of Revivals. rephasement and
restructuring of credit facilities,
compromise settlement of loans,
one time settlement of loans,
Settlement of Debts through Lok
Adalat etc.,
Conversant with the legal measures Willful Defaulters
to be taken after exhausting all
remedies for recovery of loans like;
filing suit in the competent Court of
law / Debt Recovery Tribunal,
obtention of Decree, enforcement of
Decree
and enforcement of security interest
in case of property attached under
SARFAESI Act.
Income Exemplify the norms for Prudential norms on
30-31 recognition and recognizing income on loans and IR&AC and
Asset advances, and provide for different Provisioning
classification types of performing and non- pertaining to
performing assets advances
32 Nursing & Discuss the need for rehabilitation
Rehabilitation of of sick units especially the SME
Sick Units units, and appreciate the role of
institutions involved in the process.
33 Credit Risk Identify the risks involved in credit
Management dispensation, and explain the
various measures to manage it.
Appreciate the importance of timely
recovery of loans by adopting
preventive, remedial and legal
measures;
Depict the need and importance of
appropriate documentation;
Evaluate the role of securitization,
and credit derivatives to manage the
credit risk.
5

No. Session Plan
5–7 Credit Policy Credit Policy of a Bank Simulation
30-31 IRAC Norms RBI circular on IRAC Norms Discussion
SDG Sensitization:
Sessio Mapped Topic(s) in

n No. Session Plan
19 MSME Lending Affordable and Clean Energy Group Discussion
Data Based Insight:

Evaluation of Performance of Banks using the data available from RBI web site. (Statistical tables
relevant to banks in India.)
.
Keeping in line with continuous evaluation at IBS the following evaluation schedule has been drawn.
Students are expected to go through the dates / sessions mentioned and prepare accordingly.
Expected
Component Marks
Component slot / due Weightage
Number declaration by
date
Test – 1 1 11 13 15
Test – 2 2 24 26 15
Project Report (On going) 3 15 / 30 17 / 33 20
End Exam At the end of the semester 40
Total 100

a. Students must report to the respective sessions well before the announced time. Latecomers
will not be permitted to join the class after the scheduled time. If late, the attendance for that
session will be marked as absent.
b. Read the Case Study / material well prior to the class discussion. He/she is also expected to
read the chapter indicated in the course plan as the faculty directs.
c. In the class discussion student is expected to participate actively and contribute to individual
and group learning. Evaluation is based on active participation.

All the software/analytical tools/packages subscribed by the institute can be used widely for regular
learning and also project work. The institute offers access to various online databases through
KNIMBUS platform. Any other tools/packages to be used shall not infringe copyright of the
provider.
6
Plagiarism policy:
Any infringement of copyright/patent/trademark is not appreciated and shall be viewed seriously.
The students are suggested to take proper help/support from the faculty members in this regard. So
that students don’t get into this infringement aspect either knowingly/unknowingly.

 A group of Projects are suggested to the students in a Google sheet.
 Each student can select a project of his / her choice.
 The projects are normally related to the following areas.
 Interbank comparison,
 NPA position of banks over the past decade,
 Pattern of lending and profitability,
 Credit policy and Credit management
 Securitization of loans,
 MSME Finance,
 Working capital assessment of credit proposals,
 Trends in recovery management of banks,
 Analysis of financial statements to predict the health of business entities
 A practical way of appraisal of Term loans.
 Appraisal of non-fund-based credit limits.
 Credit health of banks in India: Before and after measure.
 Credit Appraisal: Precautions to be taken.
 Role of credit management in the profitability of a Bank. etc.
 The students are supposed to cull data from authentic sources like RBI/IBA/ IIBF etc.
 A part submission of the report is done at the end of 15th session and the final report is to be
submitted at the end of 30th session.
********************End of Corporate & SME Banking ************
7
Course Handout
Program : MBA
Course Code : SLFI630
Course Title : Financial Analytics Semester: IV
Faculty Name : Dr.Jyothi Chittineni Room No: F207
Consultation Hours (Day/time):
Mobile No: +91-9848779770 Email: jyothi.chittineni@ibsindia.org

At the successful completion of the MBA Program, the students are expected to achieve the
following outcomes.

PO-5 Ethics
PO-9 Employability
PO-10 Teamwork
Course Description:
Business decisions are based on the numbers rather than ideas. Any decision on company
policy must be backed by future projections or analysis of the Historical data. Financial
Analytical techniques can help us to accurately forecast ‘what if’ scenarios and design realistic
forecasts which in turn leads to a successful business decisions. This course being a bridge
courses between theoretical knowledge and the practical approach, enhances the conceptual
knowledge and critical thinking of the students in financial decision making. This course will
help the students take their analytical skills to the next level of accuracy.
Course Objectives
The course is designed to..
• Provide the ability to think critically and analyze complex and voluminous financial
data
• Develop the skills that are required to analyze real-life proposals for financial
investment in a meaningful manner
• Develop core competencies and technical skills in the fields of applied finance,
quantitative modelling, risk management techniques and financial statement
projections.
1
• Develop leadership characteristics to lead teams and to achieve common goals.
Learning Outcomes (CLO)
At the end of the course students shall be able to …

CLO-1: Demonstrate required skills for building spreadsheet models to analyse the
business performance.
CLO-2: Think through a problem creatively, generate a set of alternatives and use
optimisation techniques to solve complex problems like capital budgeting under
capital rationing, optimum portfolio selection etc
CLO-3: Apply what-if analysis tools to tackle other subtler aspects in business
valuations and stock valuations
CLO-4: Analyze a merger deal and prepare pro forma 3 statements and Business
valuation for the acquirer
Course Learning Outcome Programme Outcomes Assessment
CLO-1 PO1, PO9 Quiz-1, End term exam
CLO-2 PO1,PO9, PO12 Quiz-2, End term exam
CLO-3 PO1,PO9, PO12 Quiz-2,End term exam
CLO-4 PO1, PO10, PO11,PO12 Project and End term

exam.

 Financial Valuation and modelling by Seeba Kapil, 1st Edition, Wiley.
(Edition -2022)
Suggested reference books:
 Excel Modeling in Corporate Finance by Craig W Holden 5th Edition , Person,

 Financial Analysis with Microsoft Excel, Timothy R. Mayes and Todd M. Shank, 7th
Edition, Cengage Learning
Software: MS Office especially MS Excel

Digital resources
(Proessor/Institute)
1. Valuation, Sessions 1-25. Prof. Aswath
https://www.youtube.com/playlist?list=PLUkh9m2BorqnKWu0g5ZUps_Cb Damodaran, Stern
Q-JGtbI9 School of Business
2
(New York
University)
2. Financial Mathematics ( unit-10,11) Dr. Pradeep K. Jha,
https://nptel.ac.in/courses/112107260 IIT Roorkee
3. Financial Management For Managers (unit-9,10,11) Prof. Anil K.

https://nptel.ac.in/courses/110107144 Sharma, IIT
Roorkee
Video links:
S. YouTube Video Title & Link Speaker/Event/Organization
No.
1. Corporate valuation in merger model Pat Obi
https://www.youtube.com/watch?v=1RS59j7mLkc
2. Equity creation and dilution Wall Street Prep

https://www.youtube.com/watch?v=LkdDjmxrWww&t=445s
https://www.youtube.com/watch?v=-EOESxaWNP4
3 DCF valuation
https://www.youtube.com/watch?v=bE7FfmYz4ns The WallStreet School
4 Three financial statement model Corporate Finance
https://www.youtube.com/watch?v=mt5Ve01n_X0 Institute
DATA INSIGHT:
1. Prowess Database https://prowessiq.cmie.com/
2. Money Control https://www.moneycontrol.com
3. Stock Reports / Stock Screeners https://trendlyne.com
4. Stock Exchanges https://www.nseindia.com
https://www.bseindia.com
Case /Reading
Sessio Chapter
Topic Learning Outcomes article/ Lecture /
n No. s
Activity
 Understand the usage of
excel in-built functions, dot
Introductio
functions and user defined
n and Workshe
functions
01-02 Advanced Excel templates et
Excel  Learn using the optimization template
tools for financial planning
functions
models- savings and
retirement plan
3
 Build three financial

statements in excel and link
the worksheets with
formulas for any company
 Create common size
versions of financial
Basics of statements
financial  Create the proforma of
statements financial statements Excel
Financial statements
03-06 and  Use circular reference to project templates
template
financial perform iterative s
statements calculations
forecasting  Forecast the sales and key
variables using trend
function
 Plug-in concept to balance
the unbalanced balance
sheets
Anwal Gas Traders:

 Demonstrate the use of excel Capital Budgeting
in-built functions in for Expansion
calculating after tax cash Project
Capital flows, depreciation
7-8
budgeting expenditure  Product
 Calculating six capital #: W25080-PDF-
budgeting techniques using ENG
excel functions
Molycorp: Financing
 Use Excel solver to find the the Production of
firm’s optimal capital Rare Earth Minerals
budgeting under capital (A)
Optimal
rationing
9-10 Capital
 Understand the sensitivity of
budgeting  Product #: 214054-
the capital budgeting
decision using scenario PDF-ENG
manager
Sessions 1 to 10
11 TEST-1
 Calculate the components of Estimating Walmart's
cost of capital with floating Cost of Capital
costs and taxes Product #:
Cost of  Calculate WACC and W19208-PDF-ENG
Ch-4
12-13
capital understand why and how a
firms WACC changes as
total capital requirement 
changes
4
 Calculate the optimal capital

structure for a given
company
Fundamental
Enterprise Valuation:
 Learn the different valuation Introduction
models like EVA, multiples
Business
14-16 approach  Product Ch-2
valuation
 Startup valuation and #: 801121-PDF-
scenario testing ENG
DCF valuation for

 Calculate the intrinsic value Colgate Palmolive
of the given company by
Stock
17-18 using DCF valuation DCF valuation of Ch-3
valuation
techniques Reindeer ltd (page
65-75)
 To value non traded private

TT&T relative
Relative companies,
19-20 valuation modelling Ch-6
valuation  To value a transactions like (page 168-182)
M&A deals
Sessions 11 to 20
21 TEST-2 Chapters covered – 8, 10, 11
&12
 Understand the M&A
merger modeling with
valuation concept
Pfizer Inc and
M&A  Estimate the enterprise value
Allergen Plc merger
Valuation of the target with synergy
22-25 model and Ch-9
and merger gains
sensitivity analysis)
modelling  Sensitivity analysis
Page 257-288)
 Valuation of target with
multiples
 Creating foodball field
 Estimate the price of the Note on Duration
bond, and Convexity
Bond  Analyze the sensitivity of
26-27 the bond price to its key  Product #: 205025-
valuation
variables by using duration PDF-ENG
convexity approximation
techniques
 Calculate the expected  P #: W15109-
Portfolio
28-29 return, standard deviation, PDF-ENG
selection
covariance, and correlation
5
 Create variance and

covariance matrix for more
than two stocks portfolio
 Create an efficient frontier
 Create a CML line by
adding risk free asset to the
portfolio
Valuing a real
options to adandaon
 Calculate the value of the project (399-401)
Options
30 options using excel Ch-12
valuation
functions Artemy Ltd real
option valuation
(391-398)
Show the student
how to:
 Access and
M&A modelling : Each group (
collect the data
4 members group) must prepare from company
websites (latest
and analyze the performance of
Project data).
31-33
Work a company after its merger  Perform
calculations in
process.
excel, report
. writing and
presentation
using power
point.

a. Students must report to the respective sessions well before the announced time.
Latecomers will not be permitted to join the class after the scheduled time. If late, the
attendance for that session will be marked as absent.
b. Students are expected to download the excel templates forwarded by the faculty before
coming to the class and watch the related video mentioned in the course handouts.
c. In the class discussion student is expected to participate actively and contribute to
individual and group learning. Evaluation is based on active participation.
Evaluation Timelines
Keeping in line with continuous evaluation at IBS the following evaluation schedule
has been drawn. Students are expected to go through the dates / sessions mentioned and
prepare accordingly.
Component Component Expected slot / Marks declaration Weightage

Number due date by
th
Test I 1 10 session 12th session 15
6
Test II 2 21st session 23rd session 15

Project report 3 31-33 session 33rd session 20
Class Participation 4 33rd session 33rd session 10
End Term exam At the end of As per As per schedule 40
the semester schedule
Total 100
Project details:
• Project : Merger modelling
• Group : 4 students ( 2 target company & 2 acquirer company)
• Excel model :
• Building 3 financial statements and forecasting (post-merger)
• Acquirer business valuation
• Presentation: presentation should focus to answer the following questions
• What is the motivation to choose x as Acquirer company and Y as target
company ( Motivation for the merger deal)
• Justify the assumptions and elaborate on the drivers merger model
• Explain all the necessary adjusts required to create a post-transaction balance
sheet
• Assumptions to Integrate the acquirer and the target into a pro forma model
• Deliberations on the accretion or dilution of key per share metrics
• Build the sensitivity of the model on key assumptions and assess the overall
impact of the transaction
Ses
Mapped Topic(s)
sion Article/Case/Minor Project Pedagogical Tool
in Session Plan
No.
Merger Model
22 (Local) Project Group Discussion
Business Valuation
14 Case study
(International)
******End of Financial Analytics********************

IBS Hyderabad

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

IBS Hyderabad

Uploaded by

Copyright:

Available Formats

IBS Hyderabad (Academic Year 2022-23)

Program Outcomes (PO):

PO-1 Critical Thinking

Course Learning Outcomes (CLO):

Course Learning Program Outcomes (PO) Pedagogy Assessment

Recommended Text Book:

Forwards: Introduction and Pricing

Forwards: Pricing and Arbitrage

Futures: Margining & MTM

Hedging with Index Futures

Option Basic Theory

Black & Sholes Model

3. The Building Blocks of Risk Management Prof. James Forjan

How Do Firms Manage Financial Risk?

Hedging Strategies using Futures

Trading Strategies involving Options

Black & Sholes Option Pricing Model

2. Managing Risk in Practice David Hillson

Detailed Session Plan:

Why manage Risk?

Local/National/International Perspective: <Atleast 1 if relevant to the nature of course>

Session Mapped Topic(s) in

SDG Sensitization: <Atleast 1 if relevant to the nature of course>

Session Mapped Topic(s) in

Data Based Insight: <Atleast 1 if relevant to the nature of course>

Expectations from Students

Please note that

***************End of FDRM Course Handout**********************

Program Outcomes (PO):

PO-1 Critical Thinking

Course Learning Program Outcomes Pedagogy Assessment

CLO-3 PO1,PO7,PO9,PO12 Case Method, Excel Quizzes, Project Based

CLO-4 PO1,PO9, Case Method, Lecture, Case Method, Lecture,

CLO-5 PO10,PO5,PO7 Case Method, Lecture, Focused listing, Case

CLO- 6 PO1,PO9,P12 Excel based active Project evaluation,

Recommended Text Book:

Suggested Reference Books:

2. On 10 years of IFRS Hans Hoogervorst, IASB

4. Basel III regulations Raghuram G Rajan

Detailed Session Plan:

Sess Topic Session Learning Outcomes Articles Chapter Reading

1– Introduction Describe the contents of Financial Chap – 1

Statement Describe the various Analysis: An

3 Financial Describe the Importance of Chap – 3

4 Analysis of Cash Flows from Operating, Understanding Chapter – 6:

5 Analysis of Distinction between costs Chapter – 8

6– Analysis of Distinction between the costs Chapter – 9

Describe Fair value of good

Compare Depreciation methods

Analysis of Understanding different types of Chapter – 14

12- Analysis of Account and value the debt Non-Current Chapter – 10

Case: Kim Park

14 – Leases and Describe Off Balance Sheet Chapter – 9 & 10

Measure the impact on

16 – Analysis of Estimate the Fair Value of Chapter – 17

corporate Amortize Discount/ premium Note: Fair Value

18 – Analysis of Account for Business Chapter: 14

The Talbots, Inc.

21- Analysis of Understand the Concept of Deferred Taxes at Chapter – 13

Explain how deferred tax

Measure and analyse the item

24 – Foreign Understand how Consolidation of Chapter: 15

Differentiate between transaction Case: Cosmeticos

*End of FDRM Course Handout********

**End of Financial Statement Analysis*

End of Banking Management