DIPLOMA IN FINANCE

Finance for Non-Finance Executives

Background

Almost everything in business eventually boils down to the rupee sign. Hence, irrespective of what your primary area of work is, you need a basic grounding in finance and accounting.

Often, non-finance executives have an aversion or even fear of finance and accounting. This stems mainly from lack of familiarity. Years of interaction with non-finance executives has convinced me that if the basics of finance and accounting are explained in a simple and lucid manner, negative feelings turn positive appreciation. This programme seeks to achieve this transformation.

Objectives

Designed to demystify the field of finance this programme seeks to:

Impart a sound understanding of financial and accounting reports used in business.
Develop skills in applying financial tools and techniques.
Sharpen the finance sense of non-finance executives.

Programme Coverage

The programme will have a composite paper divided into two parts.

Part A : ACCOUNTING AND CONTROL

Understanding Financial Statements
Financial Statement Analysis
Accounting Mechanics
Forecasting Financial Statements
Cost Methods and Systems
Managerial Decision Making
Budgeting
Strategy and Planning
Strategic Cost Management
Business Performance Measurement
Accounting Standards
Taxation

Part B : FINANCIAL MANAGEMENT

Overview
The Financial System
Valuation Concepts
Capital Budgeting
Business Financing
Working Capital Management
Mergers, Acquisitions and Restructuring
International Finance
Value Based Management
Securities Market
Investment Management
Financial Services

Format and Duration

The programme is a Distance Learning Programme of six months duration. Candidates will be provided with excellent reading material, and a detailed study plan to facilitate self-learning. In addition, they will have the benefit of asking questions on the Internet.

For Whom

The programme is meant for non-finance executives in various areas (like production, marketing, purchase, R&D, human resources, and IT), entrepreneurs, and software professionals . In addition, it will benefit MBA students who are not majoring in Finance

Fees

The fees is Rs.6000 which is all-inclusive. It covers service tax, admission, courseware, querying facility, web-learning support, examinations (the facility of making 2 online registrations), and certification.

Enrollment

You can enroll for the Diploma in Finance Programme from June 1, 2011 onwards. The first set of examinations under New Regulations will be held on January 29, 2012. Your enrollment will be valid till July 31, 2012. For online enrollment in the programme, please, visit our website : www.cfm-india.com. Online enrollment will begin from June 1, 2011.

Courseware

On enrollment to the programme, the complete courseware will be dispatched to you within two weeks of receiving your application.

Examination and Qualification

Examinations for the papers will be held twice a year in the months of January and July. The maximum time allowed to complete the programme is one year. Those who pass the programme will be awarded qualification DIPLOMA IN FINANCE (Finance for Non-Finance Executives) issued by the CENTRE FOR FINANCIAL MANAGEMENT.

Programme Highlights

· State of the art curriculum

· World class courseware

· Web learning support

· Excellent student service

· Access to CFM Quarterly (an e-Journal)

· Modest fees.

Further Details

For further details relating to examinations, examination schedule, examination centres, internet querying facility, provision for refund, and so on will be loaded on the website shortly .

Curriculum

The composite paper comprises of two parts (a) accounting and control and (b) financial management. The detailed curriculum is as follows.

Part A : ACCOUNTING AND CONTROL

Understanding Financial Statements: Overview of Business activities - Basic Concepts Underlying Financial Accounting - Balance Sheet - Profit and Loss Account - Statement of Cash Flows - Other Items in Annual Report - Manipulation of the Bottom Line.

Financial Statement Analysis: Financial Ratios (Liquidity, Leverage, Turnover, Profitability, and Valuation Ratios) - Comparative Analysis - Problems in Financial Statement Analysis - Guidelines for Financial Statement Analysis.

Accounting Mechanics: Accounting Model - The Device of Account - System of Debits and Credits - Journal – Ledger - Trial Balance - Adjustment Entries - Financial Statements.

Forecasting Financial Statements: Strategic Plan - Components of a Financial Plan - Sales Forecast - Proforma Profit and Loss Account - Proforma Balance Sheet - Computerised Financial Planning System - Additional Funds Needed - Sustainable Growth Rate.

Cost Methods and Systems: Cost Concepts and Classifications - Costing Process -Costing Systems - Standard Costing - Activity Based Costing.

Managerial Decision Making: Cost Behaviour - Cost Volume Profit Analysis - Steps in Decision Making - Principle of Differential Analysis - Analysis for Decision Making.

Budgeting: Framework for Budgeting - Master Budget - Flexible Budgeting - Variance Analysis - Human Aspects of Budgeting - Budgeting in India - Do's and Don'ts of Budgeting - Becoming Budget Savvy.

Strategy and Planning: Concept of Strategy - Corporate Level Strategy - Business Unit Strategies - Strategic Innovation - Purpose of a Business Plan - Contents of a Business Plan - Process of Preparing a Business Plan - Dos and Donts of a Business Plan.

Strategy Cost Management: Strategic Cost Management-Guidelines for Total Cost Management-Cost Management in Practice.

Business Performance Measurement: Performance Measures-Balanced Scorecard-Divisional Performance Measurement-Designing an Effective Performance Measurement System-Performance Measurement: Some Examples.

Accounting Standards: International Financial Reporting Standards (IFRS)-Indian GAAP-Key Trends In Accounting Standards-Illustrations of Significant Accounting Policies.

Taxation : Statutory Audits-Internal Audits -Framework for Taxation.

Part B : FINANCIAL MANAGEMENT

Overview: Financial Decisions in a Firm - Goal of Financial Management - The Fundamental Principle of Finance - Risk-Return Tradeoff - Forms of Business Organisation - Agency Problem - Organisation of the Finance Function - Relationship of Finance to Economics and Accounting.

The Financial System: Functions of the Financial System - Financial Assets - Financial Markets - Financial Market Returns - Financial Intermediaries - Regulatory Infrastructure.

Valuation Concepts: Future Value of a Single Amount - Future Value of an Annuity - Present Value of a Single Amount - Present Value of an Annuity - Bond Valuation - Equity Valuation - Risk and Return of a Single Asset - Risk and Return of a Portfolio - Measurement of Market Risk - Relationship between Risk and Return.

Capital Budgeting: Capital Budgeting Process - Key Steps in Project Appraisal - Costs and Benefits - Investment Criteria - Analysis of Risk - Cost of Capital - Value of Options - Overall Corporate Considerations-Project Appraisal by Financial Institutions.

Business Financing: Capital Structure - Financing Instruments - Methods of Raising Finance - Markets - Pricing and Timing - Distribution Policy - Investor Communication - Corporate Governance - Sources of Capital (Equity Capital, Preference Capital, Internal Accruals, Term Loans, Debentures, Working Capital Advances, Miscellaneous Sources).

Working Capital Management: Characteristics of Current Assets - Factors Influencing Working Capital Requirements - Working Capital Policy - Operating Cycle and Cash Cycle - Cash Requirement for Working Capital - Cash Management - Credit Management - Inventory Management - Management of Payables and Accruals - Ten Commandments of Working Capital Management.

Mergers, Acquisitions and Restructuring: Mergers - Purchase of a Division/Plant- Takeovers - Managing an Acquisition - Business Alliances - Portfolio Restructuring - Financial Restructuring - Organisational Restructuring - Rehabilitation Schemes - Privatisation - Dynamics of Restructuring.

International Finance: World Monetary System - Foreign Exchange Market - Raising Foreign Currency Finance - International Capital Budgeting - Financing and Insuring Exports - Documents in International Trade - Foreign Exchange Exposure - Management of Foreign Exchange Exposure.

Value Based Management: Methods and Key Premises of Value Based Management (VBM) - Measure of Value Creation: Market Value Added - Drivers of Value Creation - Economic Value Added - Experience of VBM Adopters - Potential and Hurdles for VBM in India.

Securities Market: Primary Equity Market - Secondary Equity Market - Government Securities Market - Corporate Debt Market - Money Market - Options Markets - Futures Market.

Investment Management: Investment Alternatives - Investment Attributes - How Do Various Investment Compare - Basic Guidelines for Investing: The Ten Commandments.

Financial Services: Commercial Banks - Insurance - Mutual Funds - Venture Capital - Leasing and Hire Purchase – Factoring - Investment Banking - Credit Rating - Securitisation.

Programme Director

Dr Prasanna Chandra