UNIT III: Understanding Financial Statements Introduction to financial statements, The Director’s Report, the Auditor’s Report, and Financial Statements: Balance Sheet, Income Statements, Schedules and Notes to the Accounts, Cash Flow Statement, Financial Statement Analysis and Forensic Accounting, Comparative and Common-size financial statements, Financial Ratios, Du-Pont Analysis, Cash Conversion cycle, The Satyam case and need for forensic accounting. UNIT IV: Valuation Methodologies (Practicals) Top-Down valuation (EIC Analysis) – Economy, Industry, Company, Discounted Cash Flow (DCF) Models, Dividend Discount Model (DDM), Free Cash Flow to Firm (FCFF) and Free Cash Flow to Equity (FCFE) based DCF, Sum of the parts (SOTP), Price-to-Earnings (PE) ratio, Price to Book Value PB Ratio, EV/ EBITDA, Price to Sales (P/S) Ratio, Special cases of valuation – IPOs, Financial Services firms, Net interest mar within (NIM), Firms negative cash flows, Acquisition valuation, Distressed companies. Text Books: 1. NSE Academy, NCFM- Fundamental Analysis Module, Mumbai: Annual 2. Raghu Palat (2016), Fundamental Analysis for Investors, New Delhi: Vision Books Reference Books: 1. Parag Parikh (2016), Value Investing and Behavioral Finance. Bangalore, McGraw Hill Education 2. M.Y. Khan, P.K. Jain (2017), Financial Management. Bangalore: McGraw Hill Education 3. Aswath Damodaran (2012),Investment Valuation: Tools and Techniques for Determining the Value of Any Asset, New Delhi: Wiley India 20BC2044 CURRENCY & COMMODITIES MARKET Credits: 4: 0: 0 Course Objectives: 1. To enable a better understanding for Currency Derivatives Market and to the application in various strategies for hedging 2. To understand a common minimum knowledge benchmark for associated persons functioning as approved users and sales personnel of the trading members in the commodity derivatives segment of a recognized stock exchange. 3. To get an insight a better understanding of various derivatives products available in commodity derivatives markets, regulations and risks associated with the products and the exchange mechanisms of trading, clearing and settlement. Course Outcomes: After completing this course, they should be able to: 1. Understand the concepts of Currency Derivatives 2. Analyze the strategies using currency futures 3. Remember the basics of the Indian commodity derivatives markets. 4. Develop various trading strategies that can be built using commodity derivatives. 5. Evaluate the clearing, settlement and risk management as well as the operational mechanism related to commodity derivatives markets 6. Apply the regulatory environment in which the commodity derivatives markets operate in India. UNIT I: Introduction to Currency Markets &Foreign Exchange Derivatives Major currency pairs, Overview of international currency markets, currency markets in India, Settlement or value date, Over-the-Counter (OTC) forward market, Exchange rate arithmetic- cross rate, Impact of market economics on currency prices, Economic indicators, Market players in the foreign exchange market, Key economic functions of derivatives, Exchange-Traded vs. OTC derivatives
COMMERCE AND INTERNATIONAL TRADE (2020)
