This document outlines courses in a Basics of Financial Analysis program. The courses cover topics such as economics, accounting, corporate finance, financial markets, investments, banking, risk management, and insurance. Some key courses include Fundamentals of Financial Statements, Capital Budgeting, Security Analysis and Portfolio Management, Derivatives, Credit Management, and Risk Management in Banks, Mutual Funds, and Insurance Companies. The document lists recommended textbooks for each subject area.

1. Basics of Financial Analysis
101 – Managerial Economics
1. Introduction and Basic Concepts: Key Principles of Economics, Demand , Supply and
Market Equilibrium, Measuring GDP, GNP, Unemployment and Inflation
2. Economic Cycles and Fiscal Policy: Aggregate Demand and Aggregate Supply, Fiscal
Policy, Income-Expenditure Models, Investment and Financial Markets
3. Money, Banking and Monetary Policy: Money and the Banking System, Central Banks
and Monetary Policy
4. Demand and Supply Analysis: Elasticity, Consumer Choice: Indifference Curves, Utility
Theory, Government intervention and Market Efficiency, Total Cost Fixed Cost and Variable
Cost, Breakeven Analysis, Short term and Long term Profit Maximization
5. Market Structure and Pricing: Perfect Competition, Monopoly, Oligopoly, Regulations to
enhance competition
Books*
A guide to Econometrics byPeter Kennedy
102 - Accounting and Financial Reporting
1. Fundamentals and Analysis of Financial Statements: demonstrate the use of a
framework for the Analysis of Financial Statements given a particular problem, question, or
purpose, identify Financial Reporting choices and biases that affect the Quality and
Comparability of Companies’ financial statements and illustrate how such biases affect
financial decisions
2. Ratio Analysis : evaluate the quality of a company’s financial data and recommend
appropriate adjustments to improve quality and comparability with similar Companies.
3. Indian Accounting Standards,IFRS and US GAAP: analyze and interpret the effects of
balance sheet modifications, earnings normalization, and cash-flow-statement-related
modifications on a company’s financial statements, financial ratios, and overall financial
condition
4. Window Dressing Techniques: predict the impact of differences in accounting rules,
methods, and assumptions on financial statements and ratios. Study of accounting scams
Books*
Accounting: Text and Cases by RobertAnthony, David Hawkins,Kenneth Merchant
103 – Corporate Finance
1. Net Present Value: Concept of Simple Interest and Compound Interest, Concept of Future
Value and Present Value, Annuity due and Regular Annuity, Amortisation of Loans.
2. Cost of Capital: Cost of Debt – for Term Loans and Bonds, Cost of Equity – DDM, CAPM,
Cost of Preference Shares, Calculation of Weights- Market Value Vs. Book Value, WACC,
Floatation Costs
3. Capital Budgeting: Payback Period, Discounted Payback, NPV, IRR, Profitability Index

2. 4. Capital Structure and the MM Hypothesis: Traditional Views, MM Proposition I & II with
taxes and without taxes, Cost of Financial Distress, Agency Costs, Pecking Order
5. Dividend Policy: Theories of Investor Preference, Residual Model, Stock Repurchases,
Stock Dividends and Stock Splits.
Books*
Financial Management:Theory and Practice
Principles ofCorporate Finance by Richard Brealey, Stewart Myers, Franklin Allen, Pitabas Mohanty
104 - US and Indian Financial Markets
1. Theory of Asymmetric Information
2. The organization of Financial Markets, Safety & Regulation - Managing Liquidity & Risk,
Security Market Regulation & Stability
3. Insurance, Pension Plans & Mutual Funds
4. The Mortgage Market and the International Financial Crisis,
5. Debt Markets, The Equity Market
6. The Banking Industry – Fractional Reserve to Universal Banking
7. Analysis of Banks – Liquidity, Capital Adequacy, Profitability Ratios
8. Bank Safety Regulation – Prudential Regulation, Liquidity Crisis, Private solutions for
Liquidity Crisis, Lender of Last resort, Government Guarantees of Banks, Reducing the Cost
of Moral Hazard, consequences of Tighter Regulation, Introduction to Basel Standards
Books*
Financial Institutions and Markets by Meir Kohn,
201- Investment Environment
1. Investment Environment: Real Assets vs Financial Assets, Financial Markets & the
Economy, Clients of the Financial System, The Environment response to Clientele Demands,
Markets & Market Structure, Ongoing Trends
2. Financial Instruments:The Money Market, Bond Market, Equity Securities, Stock & Bond
Market Indexes, Derivative Markets
3. Trading of Securities: Issuances, Exchanges, Market Structure, Trading Costs, Buying on
Margin, Short Sales, Regulation of Securities Markets
4. Mutual Funds & Other Investment Companies
5. Pension Funds, Insurance Companies, NBFCs
6. History of Interest Rates
Books*
Investments by Zvi Bodie, Alex Kane, Alan J Marcus, Pitabas Mohanty
202 - Fixed Income Securities

3. 1. Bond Prices & Yields: Bond Characteristics, Bond Pricing, Bond Yields, Bond Prices over
time, Default Risk & Bond Pricing
2. The Term Structure Interest Rates: The Term Structure under certainty, Interest Rate
Uncertainty & Forward Rates, Theories of Term Structure, Interpreting the Term Structure,
Forward Rates as Forward Contracts, Measuring the Term Structure
3. Managing Bond Portfolios: Interest Rate Risk, Convexity, Passive Bond Management,
Active Bond Management, Interest Rate Swaps, Financial Engineering & Interest Rate
Derivatives
Books*
Investments by Zvi Bodie, Alex Kane, Alan J Marcus, Pitabas Mohanty
Bond Analysis, Markets & Strategies by Frank J Fabozzi
203 - Security Analysis and Portfolio Management
1. Risk & Return: Defining Risk and Return, Concept of Ex-post and Ex- ante returns,
Covariance, Standard Deviation, CAPM, Concept of Beta, Concept of Mis-Pricing
2. Fundamental Analysis: The EIC framework
3. Technical Analysis: Types of Charts, The Dow Theory, Fibonacci Retracement Levels
4. Efficient Markets Hypothesis, Behavioral Theory Implications
5. Process of Portfolio Management: Investment Decisions, Constraints, Asset Allocation,
Managing Portfolios of Individual Investors, Pension Funds, Future trends in Portfolio
Management
6. Portfolio Selection: Modern Portfolio Theory, Separation Theorem, Efficiency Frontier, CML
and SML
7. Theory of Active Portfolio Management/Market
8. Portfolio Evaluation and Revision: Sharpe Ratio, Treynor Ratio and Jensons’ Alpha
Books*
Investments by Zvi Bodie, Alex Kane, Alan J Marcus, Pitabas Mohanty
Security Analysis:Sixth Edition,Foreword by Warren Buffett
Damodaran on Valuation by Aswath Damodaran
204 - Derivatives
1. Options Markets: The option contract, values of options at expiration, Option Strategies,
The Put-Call Parity Relationship, Option like Securities, Financial Engineering, Exotic
Options
2. Options Valuation: Restrictions on Option Values, Binomial Option Pricing, Black Scholes
Option Valuation, Using Black Scholes Formula, Empirical Evidence on Option pricing
3. Future Markets: The futures Contract, Mechanics of Trading in Futures Markets, Futures
Markets Strategies, The determination of Futures Prices, Futures Prices Vs. Expected Spot
Prices
4. Futures & Swaps: Foreign Exchange Futures, Stock Index Futures, Interest Rates Futures,
Commodity Futures Pricing, Swaps

4. Books*
Investments by Zvi Bodie, Alex Kane, Alan J Marcus, Pitabas Mohanty
Options,Futures & Other Derivatives by John Hull,Sankarshan Basu
301 - Commercial Banking
1. Issues in Bank Management: Role of Commercial Banks in the Economy, Structure &
Regulation of the Commercial Banking Industry
2. Banking Trends & Competition, Analyzing Bank Performance
3. Asset Liability Management: Focus of Asset Liability Management, Defensive &
Aggressive Management, Gap Analysis, Duration Gap Analysis, Interest Rate Risk
Management using Futures & Swaps
4. Liquidity Planning: Liquidity of Individual Banks, Sources of Liquidity, Trends in Liquidity
Management, Estimating Liquidity Needs, Sources & Uses of Funds, Structure of Deposits
Method, Forecasting Methods, Liquidity Management Policies
5. Investment Portfolio: Nature of Investment Portfolio, Return & Risk in the Management of
Investment Portfolio, Investment Portfolio Policies, Arbitrage & Tax Swapping, Credit
Portfolio
Books*
Bank Managementby Timothy W. Koch
302 – Credit Management in Banks and NBFC
1. Understanding the Credit Environment
2. Understand the Credit Policy and Develop the Credit Strategies
3. Develop Credit Appraisal Process: Standardization of Loan Documents, Monitoring
Mechanism and Dynamic Credit Management
4. Working Capital, Term Loans, Real Estate Loans, SME Loans Housing Loans, Car Loans,
Gold Loans, Priority Sector Lending, Agriculture Loans, Student Loans, Export Import
Finance
The above course will be based on Brickwork Ratings methodology,criteria and risk assessmentmodels.Relevant
readings will be circulated in the class.
303 – Credit Rating Agencies
1. Ratings Criteria for Large Corporates, Finance Sector, Infrastructure Sector, Commercial
Paper, SMEs, Government Grants – State & Central Government
2. Probability of Default Statistics
3. Credit Rating Parameters & Templates for Business Risk, Industry Risk, Financial Risk &
Management Risk
4. Credit Rating Models/Discriminant Anal
5. Credit Scoring Models
6. Sovereign Ratings – Public Finance, State – Centre, Federal Structure, Municipal Finances

5. 304 – Project Assignment
The above course will be based on Brickwork Ratings methodology,criteria and risk assessmentmodels.Relevant
readings will be circulated in the class.
Country Risk Analysis – A handbook,Ronald.L. Solberg
CreditRating Agencies and Their Potential Impact on Developing Countries,Marwan Elkhoury
Discussion Paper – United Nations Conference on Trade and Development.
305 – Public Finance
1. Description of Indian and internarial financial institutions
2. Functions of Government and Monetary Authority
3. Inflation and Value of Money,
4. Pension funds and retirement planning
5. Government finances – Budgets – Gross Fiscal Deficit
6. Sovereign Ratings – Public Finance, State – Centre, Federal Structure, Municipal Finances
7. Fiscal federalism in India and US
Books*
Financial Institutions and Markets by Meir Kohn,
Financial Institutions and Markets by L M Bhole
401 - Overview of Risk Management & General Techniques in Risk Management
1. High level view of Risk Management & general techniques in Risk Management:
2. Concept of Risk, Types of Risk, Risk Management Techniques - Strategies, Processes and
Measure, Manage & Monitor
3. Instruments of Risk Management
4. Trends in Risk Management
5. Role of Risk Manager and Required Skill Sets
402- Risk Management in Banks
1. Overview of Basel II
2. Credit Risk Management
3. Market Risk Management - Liquidity and Interest Rate Risk, ALM
4. Contingent Liabilities, Measuring Current Exposure of Derivative Products – Forwards,
Futures, Swaps, etc.
5. Operational Risk Management
6. Basel II & III
7. Best practices in Bank Risk Management approaches
Books*
Basel Accord handbooks and documents

6. 403 - Risk Management in Mutual Funds
1. How to analyze Mutual Fund performance?
2. Measures of Risk & Return, Evaluating Market Timing, Asset Allocation, Security Selection
abilities
3. Active & Passive Portfolio Management Techniques for Liquid, Income, Debt, Balanced &
Equity Funds
4. Risk Management in Hedge Funds & Private Equity
5. Types of Risks: Business Continuity, Compliance & Regulatory Risk, Investment Risk &
Organizational Role
6. Mutual Fund Evaluation Agencies
Books*
SEBI regulations and code ofconduct
AMFI regulations and code ofconduct
404- Risk Management in Insurance Companies
1. Types of Risk in Insurance Business : Types of Policies sold, Recent growth of the Life
Insurance Industry, Funds raised by Life Insurance Companies, Policy Holders Premiums &
Investment Income, Separate Accounts & Guaranteed Investment Contracts
2. Property Casualty Insurance Companies: Problems faced in recent years, Risk Protection
services sold by Property-Casualty Insurers, Investment Portfolios, Industry Earnings &
Losses, Variety of Organizational Forms
3. Distribution of Assets in Life Insurance Industry: Liquid Assets, Corporate Stock, Corporate
Debt Securities, Commercial, Residential & Farm Mortgages, Direct Real Estate
Investments, Loans, Advances to Policy Holders
4. Pension Funds: Functions, Evaluation of Pension Funds, characteristics of Pension Funds,
Factors that influence Pension Fund Investment Policies, Pension Fund Investments,
Investment performance of Pension Funds, Future Trends
5. Solvency II framework: Implication, Solvency modernization initiative
Books*
IRDA annual reports,rules and regulations
405. Corporate Risk Management
1. Enterprise Wide Risk Management (EWRM) Techniques
2. Uncertain Interest Rate, Exchange Rate, Macro Environment
3. Foreign Exchange Risk Management: Measuring Translation (Accounting) Exposure,
Managing Transaction Exposure
4. Measuring Economic Exposure, Managing Economic Exposure
5. Commodity Risk Management
6. Exotic Derivatives – lessons learnt, solutions

7. Books*
Multinational Financial Managementby Alan C. Shapiro