Financial Planning Budgeting PDF
Financial Planning Budgeting PDF
Financial Planning Budgeting PDF
Course Objectives
The course focuses on the theoretical as well as the practical aspects of the financial planning and budgeting
that a candidate working in financial industry may come across. The syllabus is designed to provide the
candidates with an in depth knowledge of the financial planning and budgeting so as to enable them to:
Syllabus
Strategic plan
Operating plans
Financial plans or budgets
Forecasting techniques
Fundamentals of budgets
Cost estimation and estimation techniques
Preparation of budgets
Cash budget
Income and expense budget
Budgeted balance sheet
Use of Pro forma financial statements
Variance analysis
a) Liquidity management
Introduction
Working capital issues
Decision on current asset composition – short term and long term mix
Decision on current asset financing
b) Cash and marketable securities
d) Short-term financing
Spontaneous financing
Negotiated financing
Factoring accounts receivables
Composition of short –term financing
a) Approaches to Valuation
Cost of equity
Weighted average cost of capital
f) Valuation of firm
5. Capital Budgeting
b) Cost of capital
d) Dividend policy
Mathematical models
Terminology
Descriptive and prescriptive models
Deterministic and probabilistic models
Computer models
Introduction
The objectives and role of ALM Committee
Accounting and Economic perspectives on ALM
NIM and its decomposition
The effects of rate, volume and mix on NIM and total revenue
Interest rate sensitivity and GAP management
Duration and value at risk
Implementing ALM and management issues
The major areas and decision scenarios where the subject could improve the effectiveness of management
decisions are:
Candidates are expected to develop thorough understanding of the basic concepts of financial planning and
budgeting and their application in different areas of banking operations. To ensure an effective hands-on
understanding of the techniques, procedures, and systems relevant to the course subject case studies and
scenario based questions will be incorporated in the examination.