Course Outline

Chapter - 1
Duration in Hours What will you learn? Topic What is money? Money Concept of Interest Compounding Exchange rates Simple interest, compound interest, income and expense vs. cash flows Effective yield and Compound Annual Growth Rate (CAGR) Future and Present Value NPV and its application Internal Rate of Return (IRR) Nominal rate of interest, inflation, real rate of interest Measurement of Inflation: Wholesale Price Index (WPI) and Consumer Price Index (CPI) Consumer Price Index (CPI) in US Impact on finance world Sub-topic

Understanding Money
2 Hours

Time Value of Money

Inflation

Chapter - 2
Duration in Hours What will you learn? Topic Risk

Understanding Risk
1 Hour Sub-topic Concept of risk, risk management process Credit risk, regulatory risk Market risk, operational risk Liquidity risk, legal risk Probability and impact Diversification, hedging, insurance, setting limits, avoiding risk Risk vs. return Feature of market risk management system.

Identifying Risk

Measuring Risk Managing Risk The Risk-Return Framework Risk Management Systems

Chapter - 3
Duration in Hours What will you learn? Topic Concept of Accounting Concept of a business and its classification

Accounting
1.5 Hours Sub-topic Recording transaction, preparing financial statements, users of financial statements Sole proprietorship

Partnership Limited company Principle of going concern Principle of legal entity Generally Accepted Accounting Principles (GAAP) Principle of conservatism Concept of accrual Matching concept Cost concept Income, expense, asset, liability, owners equity Recording financial transactions: general ledger entries concept of double entry, Concept of depreciation and amortization Suspense account Trial balance

Key Terms

Understanding the Accounting Process

Chapter - 4

Financial Statements

Duration in Hours What will you learn? Topic Financial Statements

1.5 Hours Sub-topic Income statement; cash flow statement; Balance sheet Understanding various components of P&L: Incomes, expenses, depreciation, PBIT, Profit After Tax Format, P&L of a bank, P&L of an NBFCs Exercise on P&L statement Cash flow from financing, cash flow from investing, cash flow from operations

Profit & Loss Statement

Cash Flow Statement Exercise on cash flow statement Assets: Current assets, long term assets Liabilities: Current liabilities, long term liability Balance Sheet Owners equity: Share capital, retained earnings, reserves Contingent assets & contingent liabilities Concept of sources and uses of funds Financial statements of a bank Live examples Financial statements of an NBFC