Course Provider: | |
Product Code: TC/04 |
The course ‘Fundamentals of Foreign Exchange’ provides comprehensive coverage of the concepts, terminology and entities involved in the Foreign Exchange market. The course covers not only the basics of how to read a Forex quote but also explains Forex Operations such as the Authorised Dealer licensing process and infrastructure requirement for Dealers & Banks. The course introduces the learner to the various banking products related to Foreign Exchange alongwith the Regulatory aspects including compliance and anti-money laundering.
Chapter | Title | Description |
0 | Course Objective | On completing this course, you will be able to, |
· Demonstrate competency in calculation of key financial ratios and the understanding of relevant elements of the balance sheet and profit & loss statement. | ||
· Demonstrate a command on the practical aspects of credit risk, business risk, management and industry risk evaluation. | ||
· Understand the various documentary requirements of the procedures, pitfalls in monitoring and control and trends in the area of working capital management, and | ||
Explain your role in the management of credit risk and financial statement analysis in a more informed manner. | ||
Methodology | ||
A large engineering giant is coming out with bonds. An investment guru has suggested that it is a good buy and written a 2 pager to his clientele on the company and the issue. He is approached by his HNI customer /s on the wheteher they should invest in it on basis of the name of the company only? . | ||
He explains them on all the relevant points such as – | ||
· What is the source of information? | ||
· What is the industry? | ||
· What is the Management outlook? | ||
Personal investment and what all can go wrong? | ||
The course will take the learner through an interaction with the experts, to assess the understanding on critical areas. | ||
1 | Introduction to Credit Risk analysis | · Basic concepts of credit risk, why credit risk is important, factors that drive an entity to default, key elements of credit risk analysis |
· Framework for analysing credit risk. | ||
· Unique aspects in assessing credit risk of an SME | ||
2 | Financial risk analysis | · Key financial ratios to be analyzed from a lender’s perspective for an SME. |
· Commonly used ratios, how to compute these ratios, relevance of these ratios and what is ‘acceptable’ level for each ratio. | ||
· Working capital cycle – tracing the cash cycle, computing key ratios | ||
· Qualitative aspects of financial analysis – assessing for future performance, financial flexibility. | ||
· How to deal with ‘doctored’ financial statements? | ||
3 | Walk-through Case study on Financial risk analysis | Course test with walk-through the participants on a live case study – Annual report, compute key ratios, form a preliminary credit opinion |
4 | Case study | Annual report, form groups for computation of key ratios and form an opinion on financial risk |
5 | Business risk analysis | · Importance of Business risk analysis, identify key factors that drive business |
· Use of tangible parameters to measure business risk profile of SMEs - product profile, value addition, customer profile, competitive scenario, track record, key growth drivers | ||
· Live examples of SMEs with strong and weak business position | ||
6 | Credit risk analysis | · Other elements of credit risk analysis viz. promoter / management profile, parent/group support |
· Importance of security / collateral | ||
Summary and Quiz | · Summarize the key learnings for the course | |
· Quiz in multiple choice questions format to validate extent of understanding |