IIM Short Term Courses Course Subjects/Syllabus

Module I–Financial Accounting

• Understanding the financial statements of various entities
• Changes in financial statements of enterprises as per IFRS/IndAS
• Financial Statements of Banks, Insurance companies, etc.
• Analysis of financial statements
• Case study on financial statement analysis – identification of companies
• Characteristics of various types of financial statements across sectors
• Use of statistics using ratio analysis
• Cases and exercise solutions on financial statement analysis
• Discussion on case analysis on ratio and cash flow

Module II–Introduction to Finance

• Description of the financial markets – capital market, money market & International Finance market - overview
• Discuss various long-term, medium-term, and short-term sources of finance
• Describe different sources of finance available to business both internal and external
• Discussion on alternate sources of finance – venture capital, private equity, lease financing, export financing
• Discussion on international financing – understanding financial instruments prevailing in the international market
• Discuss the concept of securitization

Module III–Time value of money and Asset pricing

• Calculation of future and present value, including annuity factors
• Valuation of stock
• Valuation of fixed claim (Bond)
• Risk & Return
• Meaning of cost of capital – from raising funds from different sources of finance
• Capital Asset pricing model
• Meaning and computation of weighted average cost of capital (WACC)
• Measure cost of capital of individual components of capital

Module IV-Capital budgeting

• Understanding and computing various investment evaluation techniques – Net present value (NPV), Internal Rate of Return (IRR), Profitability Index (PI), Payback period (PBP), Modified internal rate of return (MIRR), accounting rate of return (ARR)
• Objectives of capital investment decisions, understanding capital budgeting, cash flows in capital budgeting decisions, basic principles for measuring the same
• Advantages and limitations of investment decisions
• Applying the techniques of capital budgeting in real world – for capital investment decision making
• Techniques used in risk analysis in capital budgeting
• Discuss the concept of risk and uncertainty in capital budgeting

Module V-Capital structure & dividend decisions

• Meaning and significance of capital structure
• Concepts and factors for designing optimal capital structure theory. Essential features of capital structure of an entity
• Understanding and relevance of capital structure theories – traditional approach, net income approach, net operating income approach, Modigliani and Miller approach, trading-off theory, pecking order theory
• Optimal capital structure. Is there any optimal capital structure?
• Discuss the meaning, causes, and consequences of over and under-capitalization to an entity
• Relationship between the capital structure and performance of the company. Its impact on earnings of the shareholders, EBIT v/s EPS analysis
• Concept of business risk and financing risk
• Forms and determinants of dividend
• Meaning and importance of dividend decisions
• Theories of dividend decisions

Module VI-Risk management

• Derivatives
• Futures
• Options
• Foreign exchange arithmetic
• OTC derivatives
• Risk in foreign exchange