Advance Financial Management

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 Chapter and Topic-wise (A-Z) INDEX
(Advance Financial Management)

Ch No Chapter Pg
1 Financial Policy and Corporate 1
Strategy
2 Risk Management 2
3 Advanced Capital Budgeting 3-4
4 Security Analysis 5-6
5 Security Valuation 7-8
6 Portfolio 9-10
7 Securitization 12-13
8 Mutual Funds 14-16
9 Derivative 17-19
10 Forex 20-21
11 International Financial Management 22
12 Interest rate risk management 23
13 Business Valuation 24
14 Mergers, Acquisitions and Corporate 25
Restructuring
15 Start-Up Finance 26

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 AFM Chapter+Topicwise (A-Z) Index
Financial Policy and Corporate Strategy
Topic
Ch Topic Name Pg No
Sequence
1 1 ADVANCED ROLE OF CFO IN VARIOUS MATTERS INCLUDING VALUE CREATION 1.1
1 6 BALANCING FINANCIAL GOALS VIS-A-VIS SUSTAINABLE GROWTH 1.8
1 3.2 Business Unit Level Strategy 1.5
1 3.1 Corporate Level Strategy 1.4
1 4 FINANCIAL PLANNING 1.5
1 A FINANCIAL POLICY AND CORPORATE STRATEGY 1.1
1 3.3 Functional Level Strategy 1.5
1 2.2 Functions of Strategic Financial Management 1.3
1 5 INTERFACE OF FINANCIAL POLICY AND STRATEGIC MANAGEMENT 1.6
1 2.1 Meaning of Strategic Financial Management 1.3
1 6 New Strategic Direction 1.11
1 2 STRATEGIC FINANCIAL DECISION-MAKING FRAMEWORK 1.2
1 3 STRATEGY AT DIFFERENT HIERARCHY LEVELS 1.4
1 6 Sustainable Growth Rate 1.9
1 6 Three Corporate Principles 1.11
1 6 What makes an organisation financially sustainable? 1.8
1 6 What makes an organisation sustainable 1.10

By CA Vinay Kumar YT - Ultimate CA Warrior 1

 AFM Chapter+Topicwise (A-Z) Index
Risk Management
Topic
Ch Topic Name Pg No
Sequence
2 3.2 Application of VAR 2.5
APPROPRIATE METHODS FOR IDENTIFICATION AND MANAGEMENT OF
2 4 2.6
FINANCIAL RISK
2 1.2 Compliance Risk 2.2
2 1.4.1 Counter Party Risk 2.3
2 4.1 Counter Party Risk 2.6
2 1.4.4 Currency Risk 2.3
2 4.4 Currency Risk 2.7
2 2 EVALUATION OF FINANCIAL RISK 2.4
2 3.1 Features of VAR 2.4
2 1.4 Financial Risk 2.2
2 1 IDENTIFICATION OF TYPES OF RISK FACED BY AN ORGANIZATION 2.1
2 1.4.3 Interest Rate Risk 2.3
2 4.3 Interest Rate Risk 2.7
2 1.4.5 Liquidity Risk 2.3
2 1.3 Operational Risk 2.2
2 1.4.2 Political Risk 2.3
2 4.2 Political Risk 2.6
2 A RISK MANAGEMENT 1.11
2 1.1 Strategic Risk 2.1
2 3 VALUE-AT-RISK (VAR) 2.4

By CA Vinay Kumar YT - Ultimate CA Warrior 2

 AFM Chapter+Topicwise (A-Z) Index
Advanced Capital Budgeting
Topic
Ch Topic Name Pg No
Sequence
3 6 ADJUSTED PRESENT VALUE 3.39
3 A ADVANCED CAPITAL BUDGETING DECISIONS 3.1
3 4.2.2 Certainty Equivalent (CE) 3.21
3 4.1.4 Coefficient of Variation 3.17
3 3.1.2 Company-specific risk 3.11
3 3.2.3 Competition risk 3.11
3 4.2 Conventional Techniques 3.19
3 1 CURRENT TRENDS IN CAPITAL BUDGETING 3.1
3 2 DEALING WITH RISK IN INVESTMENT DECISIONS 3.9
3 4.3.4 Decision Tree Analysis 3.32
3 3.2 External Factors 3.11
3 1.3 Impact of change in Government Policies on Capital Budgeting Decisions 3.8
3 1.2 Impact of change in technology on Capital Budgeting Decisions 3.7
Impact of changes in Government Policies on Domestic Capital Budgeting
3 1.3.1 3.9
Decision.
Impact of changes in Government Policies on International Capital Budgeting
3 1.3.2 3.9
Decision.
3 1.1 Impact of Inflation on Capital Budgeting Decisions 3.2
3 3.2.1 Industry-specific risk 3.11
3 3 INTERNAL AND EXTERNAL FACTORS AFFECTING CAPITAL BUDGETING DECISION 3.10
3 3.1 Internal Factors 3.10
3 3.2.5 International risk 3.11
3 3.2.2 Market risk 3.11
3 4 METHODS OF INCORPORATING RISK IN CAPITAL BUDGETING 3.11
3 5.2 Optimum Replacement Cycle 3.37
3 4.3 Other Techniques 3.23
3 4.1.1 Probability 3.12
3 3.1.1 Project-specific risk 3.10
3 2.2 Reasons for adjustment of Risk in Capital Budgeting decisions 3.10
3 5 REPLACEMENT DECISION 3.35
3 5.1 Replacement of Existing Machine 3.35
3 4.2.1 Risk Adjusted Discount Rate 3.19
3 2.1 Risk and Uncertainty 3.10
3 3.2.4 Risk due to Economic conditions 3.11
3 4.3.2 Scenario Analysis 3.28
3 4.3.1 Sensitivity Analysis 3.23

By CA Vinay Kumar YT - Ultimate CA Warrior 3

 AFM Chapter+Topicwise (A-Z) Index
Advanced Capital Budgeting
Topic
Ch Topic Name Pg No
Sequence
3 4.3.1 Sensitivity Analysis-Advantages & Disadv 3.26
3 4.3.3 Simulation Analysis (Monte Carlo) 3.29
3 4.3.3 Simulation Analysis (Monte Carlo)--Advantages & Disadv 3.31
3 4.1.3 Standard Deviation 3.16
3 4.1 Statistical Techniques 3.12
3 4.1.2 Variance 3.15

By CA Vinay Kumar YT - Ultimate CA Warrior 4

 AFM Chapter+Topicwise (A-Z) Index
Security Analysis
Topic
Ch Topic Name Pg No
Sequence
4 1.2.2 Anticipatory Surveys 4.5
4 2.5 Bar Chart 4.18
4 1.2.2 Barometer/Indicator Approach 4.6
4 2.6 Breadth Index 4.20
4 2.9 Buy and Sell Signals Provided by Moving Average Analysis 4.27
4 2.5 Charting Techniques 4.18
4 1.4 Company Analysis 4.9
4 2.6 Confidence Index 4.21
4 1.4 Cross-Sectional and Time Series Analysis 4.9
4 2.9 Decision Using Data Analysis 4.26
4 3 DIFFERENCES BETWEEN FUNDAMENTAL ANALYSIS AND TECHNICAL ANALYSIS 4.29
4 1.1 Dividend Growth Model and the PE Multiple 4.3
4 2.4.1 Dow Theory 4.15
4 1.2 Economic Analysis 4.5
4 1.2.2 Economic Model Building Approach 4.6
4 4.7 Efficient Market Theory - Challenges 4.32
4 4.5 Efficient Market Theory - Empirical Evidence on Semi-strong 4.31
4 4.6 Efficient Market Theory - Empirical Evidence on Strong form 4.32
4 4.4 Efficient Market Theory - Empirical Evidence on Weak form 4.30
4 4.2 Efficient Market Theory - Misconception 4.30
4 4 EFFICIENT MARKET THEORY (EFFICIENT MARKET HYPOTHESIS) 4.29
4 2.4.2 Elliot Wave Theory 4.16
4 5 EQUITY RESEARCH AND TOOLS AVAILABLE 4.33
4 2.9 Exponential Moving Average 4.27
4 1.2.1 Factors Affecting Economic Analysis 4.5
4 1.3.1 Factors Affecting Industry Analysis 4.7
4 4.4 Filter Rules Test 4.31
4 1 FUNDAMENTAL ANALYSIS 4.2
4 1.3 Industry Analysis 4.7
4 2.8 Interpreting Price Patterns 4.22
4 2.5 Japanese Candlestick Chat 4.19
4 4.3 Level of Market Efficiency 4.30
4 2.5 Line Chart 4.18
4 2.6 Market Indicators 4.20
4 2.9 Moving Averages 4.26
4 2.6 Odd - Lot Theory 4.21

By CA Vinay Kumar YT - Ultimate CA Warrior 5

 AFM Chapter+Topicwise (A-Z) Index
Security Analysis
Topic
Ch Topic Name Pg No
Sequence
4 2.5 Point and Figure Chart 4.20
4 2.4.3 Random Walk Theory 4.17
4 2.6 Relative Strength Analysis 4.21
4 4.4 Run Test 4.31
4 A SECURITY ANALYSIS 4.1
4 4.4 Serial Correlation Test 4.31
4 2.7 Support and Resistance Levels 4.21
4 2 TECHNICAL ANALYSIS 4.14
4 2.2 TECHNICAL ANALYSIS - Assumptions 4.14
4 2.1 Technical Analysis - Evaluation 4.28
4 2.1 TECHNICAL ANALYSIS - Meaning 4.14
4 2.3 Technical Analysis - Principles 4.14
4 2.4 Technical Analysis - Theories 4.15
4 1.4 Techniques Used in Company Analysis 4.13
4 1.2.2 Techniques Used in Economic Analysis 4.5
4 1.3.2 Techniques Used in Industry Analysis 4.8
4 2.6 Volume of Transactions 4.21

By CA Vinay Kumar YT - Ultimate CA Warrior 6

 AFM Chapter+Topicwise (A-Z) Index
Security Valuation
Topic
Ch Topic Name Pg No
Sequence
5 8.2 Bond Valuation Model 5.15
5 8.3 Bond Value Theorems 5.15
5 8.5 Bond Value with Semi-Annual Interest 5.16
5 8.17.1 Call/Notice money 5.24
5 6.3 Cash Flow Based Models 5.10
5 8.17.4 Certificate of Deposit 5.26
5 8.17.3 Commercial Bills 5.25
5 8.17.5 Commercial Paper 5.27
5 8.13 Convertible Debentures 5.23
5 8.12 Convexity Adjustment 5.22
5 2.2 Discount Rate 5.2
5 5.2 Discount rate selection in Equity Valuation 5.6
5 5 DISCOUNT RATE SELECTION IN RELATION TO CASH FLOWS 5.5
5 6.1 Dividend Based Models 5.6
5 6.4 Dividend Discount Model versus Free Cash Flow to Equity Model 5.12
5 8.8 Duration of Bond 5.16
5 6.2 Earning Based Models 5.9
5 6.5 Enterprise Value 5.12
5 3 EQUITY RISK PREMIUM 5.4
5 3.2 EQUITY RISK PREMIUM - Calculation 5.4
5 3.1 EQUITY RISK PREMIUM - Explanation 5.4
5 6.3.2 Free Cash Flow to Equity 5.11
5 6.3.1 Free Cash Flow to Firm 5.10
5 6.2 (a) Gordon’s Model: 5.9
5 8.9 Immunization 5.18
5 2.3 Internal Rate of Return 5.3
5 8.8 (a) Macaulay Duration 5.17
5 8.8 (b) Modified Duration 5.17
5 8.17 Money Market Instruments 5.24
5 5.1 Nominal Cash Flow 5.6
PRECAUTIONS NEED TO BE TAKEN BY A VALUER BEFORE ACCEPTING ANY VALUATION
5 10 5.31
ASSIGNMENT
5 6.2 (c) Price Earning Ratio or Multiplier Approach 5.9
5 8.6 Price Yield Relationship 5.16
5 5.1 Real Cash Flow 5.6
5 8.16 Refunding of Bonds 5.23

By CA Vinay Kumar YT - Ultimate CA Warrior 7

 AFM Chapter+Topicwise (A-Z) Index
Security Valuation
Topic
Ch Topic Name Pg No
Sequence
5 8.7 Relationship between Bond Price and Time 5.16
Repurchase Options (Repo.) and Reverse Repurchase Agreement (Reverse
5 8.17.6 5.27
Repo)
5 2.1 Required Rate of Return 5.2
5 4 REQUIRED RETURN ON EQUITY 5.4
5 9.2 Responsibilities of Valuers 5.29
5 2 RETURN CONCEPTS 5.2
5 9 ROLE AND RESPONSIBILITIES OF VALUERS 5.28
5 9.1 Role of Valuers 5.28
5 A SECURITY VALUATION 5.1
5 8.11 Term Structure Theories 5.21
5 8.17.2 Treasury Bills (TBs): 5.25
5 6.1 (1) Valuation Based holding period of One Year 5.7
5 6.1 (2) Valuation Based on Multi Holding Period: 5.7
5 8 VALUATION OF DEBENTURES AND BONDS 5.15
5 6 VALUATION OF EQUITY SHARES 5.6
5 7 VALUATION OF PREFERENCE SHARES 5.14
5 6.6 Valuation of Rights 5.13
5 8.14 Valuation of Warrants 5.23
5 6.2 (b) Walter’s Approach 5.9
5 8.1 Yield Curve 5.18
5 8.4 Yield to Maturity (YTM) 5.16
5 8.15 Zero Coupon Bond 5.23

By CA Vinay Kumar YT - Ultimate CA Warrior 8

 AFM Chapter+Topicwise (A-Z) Index
Portfolio
Topic
Ch Topic Name Pg No
Sequence
6 12.1 Active Portfolio Strategy (APS) 6.50
6 15.3.2 Active Strategy 6.59
6 1.1 Activities in Portfolio Management 6.3
6 16 ALTERNATIVE INVESTMENT AVENUES 6.60
6 9 ARBITRAGE PRICING THEORY MODEL (APT) 6.45
6 14 ASSET ALLOCATION STRATEGIES 6.57
6 13 (a) Buy and Hold Policy 6.54
6 4.4.5 Calculation of Return and Risk of Portfolio with more than two securities 6.26
6 8 CAPITAL ASSET PRICING MODEL (CAPM) 6.37
6 6 CAPITAL MARKET THEORY 6.32
6 8.3 CAPM - Advantages and Limitations 6.44
6 8.1 CAPM - Risk free Rate of Return 6.40
6 8.2 CAPM - Under Valued and Over Valued Stocks 6.42
6 13 (b) Constant Mix Policy 6.54
6 13 (c) Constant Proportion Insurance Policy 6.56
6 4.3.3.1 Correlation Method 6.17
6 16.3 Distressed securities 6.63
6 4.2 Diversion of Risk 6.11
6 5.2 Efficient Frontier 6.30
6 4.3.1 Expected Return 6.13
6 15 FIXED INCOME PORTFOLIO 6.58
6 15.2 Fixed Income Portfolio - Return 6.58
6 15.3 Fixed Income Portfolio Management Strategies 6.58
6 15.1 Fixed Income Portfolio Process 6.58
6 12 FORMULATION OF PORTFOLIO STRATEGY 6.50
6 16.2 Gold 6.62
6 10.3 Jensen Alpha 6.48
6 12.1 (a) Market Timing 6.51
6 5 MARKOWITZ MODEL OF RISK-RETURN OPTIMIZATION 6.29
6 5.1 MARKOWITZ MODEL OF RISK-RETURN OPTIMIZATION-Assumptions 6.29
6 4.3.3 Measurement of Systematic Risk 6.17
6 3.2 Modern Approach (Markowitz Model or Risk-Return Optimization) 6.8
6 1.2 Objectives of Portfolio Management 6.3
6 12.2 Passive Portfolio Strategy 6.52
6 15.3.1 Passive Strategy 6.58
6 2 PHASES OF PORTFOLIO MANAGEMENT 6.4

By CA Vinay Kumar YT - Ultimate CA Warrior 9

 AFM Chapter+Topicwise (A-Z) Index
Portfolio
Topic
Ch Topic Name Pg No
Sequence
6 4.4 Portfolio Analysis 6.19
6 2.2 Portfolio Analysis 6.5
6 2.5 Portfolio Evaluation 6.6
6 10 PORTFOLIO EVALUATION METHODS 6.46
6 A PORTFOLIO MANAGEMENT 6.1
6 4.4.1 Portfolio Return 6.19
6 2.4 Portfolio Revision 6.6
6 13 PORTFOLIO REVISION AND REBALANCING 6.54
6 4.4.2 Portfolio Risk 6.19
6 2.3 Portfolio Selection 6.6
6 3 PORTFOLIO THEORIES - Traditional Approach 6.7
6 3.1 PORTFOLIO THEORIES - Traditional Approach 6.7
6 4.4.4 Portfolio with more than two securities 6.26
6 16.1 Real Estates 6.61
6 16.1.2 Real Estates - Valuation 6.62
6 16.1.1 Real Estates - Valuation Approaches 6.61
6 4.4.3 Reduction or Dilution of Portfolio Risk through Diversification 6.22
6 4.3.3.2 Regression Method 6.17
6 4.3.2 Risk 6.15
6 4.3 Risk & Return 6.12
6 4 RISK ANALYSIS 6.9
6 12.1 (b) Sector Rotation 6.51
6 2.1 Security Analysis 6.4
6 12.1 (c) Security Selection 6.51
6 12.3 Selection of Securities 6.53
6 7 SHARPE INDEX MODEL 6.33
6 10.1 Sharpe Ratio 6.46
6 11 SHARPE’S OPTIMAL PORTFOLIO 6.49
6 7 SINGLE INDEX MODEL (SHARPE INDEX MODEL) 6.33
6 4.1.1 Systematic Risk 6.10
6 10.2 Treynor Ratio 6.47
6 4.1 Type of Risk 6.9
6 4.1.2 Unsystematic Risk 6.11
6 12.1 (d) Use of Specialised Investment Concept 6.52

By CA Vinay Kumar YT - Ultimate CA Warrior 10

 AFM Chapter+Topicwise (A-Z) Index
Securitization
Topic
Ch Topic Name Pg No
Sequence
7 10.1 Blockchain - Applications 7.11
7 10.2 Blockchain - Risks associated 7.11
7 7.1 Pass Through Certificates 7.7
7 7.2 Pay Through Security 7.8
7 A SECURITIZATION 7.1
7 3 SECURITIZATION - BENEFITS 7.2
7 3.2 SECURITIZATION - BENEFITS - From the angle of investor 7.3
7 3.1 SECURITIZATION - BENEFITS - From the angle of originator 7.3
7 2 Securitization - Features 7.2
7 5 SECURITIZATION - MECHANISM 7.5
7 4 SECURITIZATION - PARTICIPANTS 7.3
7 4.1 SECURITIZATION - PARTICIPANTS - Primary 7.3
7 4.2 SECURITIZATION - PARTICIPANTS - Secondary 7.4
7 6 SECURITIZATION - PROBLEMS 7.6
7 9 SECURITIZATION - RISKS 7.9
7 11 SECURITIZATION IN INDIA 7.13
7 7 SECURITIZATION INSTRUMENTS 7.7
7 8 SECURITIZED INSTRUMENTS - PRICING 7.9
7 8.2 SECURITIZED INSTRUMENTS - PRICING -From Investor’s Angle 7.9
7 8.1 SECURITIZED INSTRUMENTS - PRICING -From Originator’s Angle 7.9
7 7.3 Stripped Securities 7.9
7 10 TOKENIZATION 7.10
7 10.3 Tokenization -Meaning 7.12
7 10.4 Tokenization and Securitization 7.12

By CA Vinay Kumar YT - Ultimate CA Warrior 11

 AFM Chapter+Topicwise (A-Z) Index
Mutual Funds
Topic
Ch Topic Name Pg No
Sequence
8 2.2.3 (g) Capital Protection Oriented Fund 8.6
8 6.2 Entry and Exit Load in Mutual Funds 8.15
8 6.4 Expense Ratio 8.16
8 2.2.3 (h) Gold Funds 8.7
8 1.4 How Mutual Funds work for you? 8.2
8 1.1 Mutual Benefits 8.2
8 4 MUTUAL FUND - ADVANTAGES 8.13
8 5 MUTUAL FUND - DRAWBACKS 8.14
8 A MUTUAL FUNDS 8.1
8 2 MUTUAL FUNDS - CLASSIFICATION 8.4
8 2.4 MUTUAL FUNDS - CLASSIFICATION -Direct Plans in Mutual Funds 8.8
8 2.1 MUTUAL FUNDS - CLASSIFICATION -Functional 8.4
8 2.3 MUTUAL FUNDS - CLASSIFICATION -Ownership 8.8
8 2.2 MUTUAL FUNDS - CLASSIFICATION -Portfolio 8.4
8 2.2.2 MUTUAL FUNDS - CLASSIFICATION -Portfolio-Debt 8.5
8 2.2.1 MUTUAL FUNDS - CLASSIFICATION -Portfolio-Equity 8.5
8 2.2.3 MUTUAL FUNDS - CLASSIFICATION -Portfolio-Special 8.6
8 7 MUTUAL FUNDS - EVALUATION 8.18
8 7.2 MUTUAL FUNDS - EVALUATION - Qualitative Parameters 8.19
8 7.1 MUTUAL FUNDS - EVALUATION - Quantitative Parameters 8.18
8 6 MUTUAL FUNDS - TERMS ASSOCIATED 8.15
8 3 MUTUAL FUNDS - TYPES OF SCHEMES 8.8
8 3.6 MUTUAL FUNDS - TYPES OF SCHEMES- Arbitrage 8.11
8 3.1 MUTUAL FUNDS - TYPES OF SCHEMES- Balanced 8.8
8 3.8 MUTUAL FUNDS - TYPES OF SCHEMES- Cash Fund 8.11
8 3.2 MUTUAL FUNDS - TYPES OF SCHEMES- Diversified Equity 8.9
8 3.3 MUTUAL FUNDS - TYPES OF SCHEMES- Equity Linked Savings Scheme(ELSS) 8.10
8 3.9 MUTUAL FUNDS - TYPES OF SCHEMES- Exchange Traded Funds 8.11
8 3.1 MUTUAL FUNDS - TYPES OF SCHEMES- Fixed Maturity Plans 8.12
8 3.7 MUTUAL FUNDS - TYPES OF SCHEMES- Hedge 8.11
8 3.4 MUTUAL FUNDS - TYPES OF SCHEMES- Sector Funds 8.10
8 3.5 MUTUAL FUNDS - TYPES OF SCHEMES- Thematic 8.10
8 6.1 Net Asset Value (NAV) 8.15
8 2.2.3 (i) Quant Funds 8.7
8 9 ROLE OF FIIs IN MUTUAL FUNDS 8.21
8 8 ROLE OF FUND MANAGERS IN MUTUAL FUNDS 8.20

By CA Vinay Kumar YT - Ultimate CA Warrior 12

 AFM Chapter+Topicwise (A-Z) Index
Mutual Funds
Topic
Ch Topic Name Pg No
Sequence
8 8.1 ROLE OF FUND MANAGERS IN MUTUAL FUNDS -Actively Managed 8.20
8 8.2 ROLE OF FUND MANAGERS IN MUTUAL FUNDS -Passively Managed 8.20
8 1.5 Should we invest in Stocks or Mutual Funds? 8.3
8 6.5 Side Pocketing 8.16
8 6.6 Tracking Error 8.17
8 6.3 Trail Commission 8.16
8 1.2 What is a Mutual Fund? 8.2
8 1.3 Who can invest in Mutual Funds? 8.2

By CA Vinay Kumar YT - Ultimate CA Warrior 13

 AFM Chapter+Topicwise (A-Z) Index
Derivative
Topic
Ch Topic Name Pg No
Sequence
9 9.3.2 Abandonment Option 9.41
9 13.2 Barings Bank’s Case 9.55
9 7.1 Binomial Model 9.21
9 7.3 Black-Scholes Model 9.25
9 8.1.2 Collateralized Debt Obligations - Risks involved 9.35
9 8.1.1 Collateralized Debt Obligations - Types of CDOs 9.34
9 8.1 Collateralized Debt Obligations (CDOS) 9.34
9 10 COMMODITY DERIVATIVES 9.44
9 10.6 Commodity Derivatives - Hedging 9.50
9 10.2 Commodity Derivatives - Investing in CD 9.46
9 10.1 Commodity Derivatives - Necessary Conditions to Introduce 9.44
9 10.4 Commodity Futures 9.48
9 10.4 Commodity Futures - Advantages 9.49
9 10.3 Commodity Market 9.47
9 10.5 Commodity Swaps 9.49
9 10.5.1 Commodity Swaps - Type 9.49
9 10.5.2 Commodity Swaps -Valuing 9.50
9 10.5.1 (b) Commodity-for-Interest Swaps 9.50
9 8.2 Credit Default Swaps (CDSs) 9.35
9 8.2.1 Credit Default Swaps (CDSs) -Main Features 9.36
9 8.2.3 Credit Default Swaps (CDSs) -Parties to CDS 9.37
9 8.2.4 Credit Default Swaps (CDSs) -Settlement 9.37
9 8.2.2 Credit Default Swaps (CDSs) -Uses 9.36
9 8 CREDIT DERIVATIVES 9.33
9 7.4.2 Delta 9.30
9 13 DERIVATIVE MISHAPS AND LESSONS 9.54
9 A DERIVATIVES ANALYSIS AND VALUATION 9.1
9 12 ELECTRICITY DERIVATIVES 9.52
9 12.1 Electricity Forwards 9.53
9 12.2 Electricity Futures 9.53
9 12.3 Electricity Swap 9.53
9 7.5 Exotic Options 9.32
9 7.5.2 Exotic Options - Types 9.32
9 7.5.1 Exotic Vs. Traditional Option 9.32
9 7.4.1 Factors Affecting Value of an Option 9.30
9 10.5.1 (a) Fixed-Floating Swaps 9.49

By CA Vinay Kumar YT - Ultimate CA Warrior 14

 AFM Chapter+Topicwise (A-Z) Index
Derivative
Topic
Ch Topic Name Pg No
Sequence
9 3 Forward and future contract - Difference 9.5
9 4 Forward and Futures Prices - Correlation 9.8
9 2 FORWARD CONTRACT 9.3
9 3 FUTURE CONTRACT 9.4
9 5 FUTURES CONTRACTS - TYPES 9.9
9 7.4.3 Gamma 9.31
9 7.4 Greeks 9.29
9 9.3.1 Growth Options 9.39
9 9.1 How Real Option is different from Financial Option 9.38
9 4 How Will the Arbitrager Act? 9.7
9 5.2 Index Futures 9.9
9 13.4 Lessons from Derivative Mishaps 9.57
9 5.2.1 Margin Requirements 9.10
9 5.2.3 Marking to Market 9.13
9 7 OPTION VALUATION TECHNIQUES 9.21
9 6 OPTIONS 9.17
9 13.1 Orange County’s Case 9.54
9 6.3 Parties to the Options 9.18
9 6.6 Pay-off scenarios - Option 9.19
9 6.4 Premium for Options 9.18
9 4 PRICING/ VALUATION OF FORWARD/ FUTURE CONTRACTS 9.5
9 13.3 Protector & Gamble (P&G) and Gibson Greetings’ Case 9.56
9 5.2.2 Purpose of Trading in Futures 9.10
9 5.2.2 (b) Purpose of Trading in Futures -Hedging 9.12
9 5.2.2 (a) Purpose of Trading in Futures -Speculation 9.11
9 9 REAL OPTIONS 9.37
9 9.3 Real Options - Type 9.39
9 9.2 Real Options - Valuation 9.39
9 7.4.5 Rho 9.31
9 7.2 Risk Neutral Method 9.24
9 5.1 Single Stock Futures 9.9
9 5.2.5 Stock Index Futures - Uses/Advantages 9.15
9 5.2.4 Stock Index Futures Trading Vs. Stock Futures Trading - Advantages 9.14
9 6.2 Stock Index Option 9.17
9 6.1 Stock Options 9.17
9 7.4.4 Theta 9.31

By CA Vinay Kumar YT - Ultimate CA Warrior 15

 AFM Chapter+Topicwise (A-Z) Index
Derivative
Topic
Ch Topic Name Pg No
Sequence
9 9.3.3 Timing Option 9.42
9 5.2.1 Trading Mechanism in Stock Futures 9.10
9 6.5 Types of Options 9.18
9 7.4.6 Vega 9.32
9 11 WEATHER DERIVATIVES 9.51

By CA Vinay Kumar YT - Ultimate CA Warrior 16

 Forex AFM Chapter+Topicwise (A-Z) Index

Topic
Ch Topic Name Pg No
Sequence
10 5.1 American Term and European Term 10.8
10 11 (A) (vi) Asset and Liability Management 10.27
10 12.2 Automatic Cancellation 10.36
10 5.3 Bid, Offer and Spread 10.9
10 5.8 Broken period forward rate 10.12
10 12.2 Cancellation on Due Date 10.32
10 4.2 Cash Position 10.6
10 15.3 Commodity Swaps 10.44
10 8.4 Comparison of PPP, IRP and IFE Theories 10.18
10 5.4 Cross Rates 10.9
10 15.2 Currency Swaps 10.43
10 11 (B) (ii) Derivative Instruments 10.28
10 5.2 Direct and Indirect Quote 10.8
10 12.2 Early Cancellation 10.33
10 10.3 Economic Exposure 10.23
Effects of Local Currency Fluctuations on Company’s Economic Exposure (Cash
10 10.3 10.24
inflow)
Effects of Local Currency Fluctuations on Company’s Economic Exposure (Cash
10 10.3 10.24
outflow)
10 15.4 Equity Swaps 10.44
10 4.1 Exchange Position 10.6
10 7 EXCHANGE RATE DETERMINATION 10.14
10 6 EXCHANGE RATE FORECASTING 10.14
10 5 EXCHANGE RATE QUOTATION 10.8
10 8 EXCHANGE RATE THEORIES 10.15
10 17 Exposure Management Strategies 10.48
10 12.2 Extension before Due Date 10.35
10 12.2 Extension on Due Date 10.34
10 12.2 Fate of Forward Contracts 10.30
10 10 FOREIGN EXCHANGE EXPOSURE 10.21
10 A FOREIGN EXCHANGE EXPOSURE AND RISK MANAGEMENT 10.1
10 9 FOREIGN EXCHANGE MARKET 10.20
10 12 FORWARD CONTRACT 10.28
10 5.6 Forward exchange rate quotation 10.10
10 16.2 Forward Exporter 10.45
10 16.2 Forward Exporter - Benefits / Risks 10.45

By CA Vinay Kumar YT - Ultimate CA Warrior 17

 AFM Chapter+Topicwise (A-Z) Index
Forex
Topic
Ch Topic Name Pg No
Sequence
10 16.1 Forward Importer 10.44
10 16.1 Forward Importer - Benefits / Risks 10.44
10 1 (b) Forward Market 10.2
10 5.7 Forward point determination 10.11
10 12.1 Forward Rate – Premium and Discount 10.29
10 6 Fundamental Forecasting 10.14
10 13 Futures and Forward Contracts - Distinction 10.40
10 13 FUTURES CONTRACTS 10.40
10 16.3 FX Call Option 10.45
10 16.3 FX Call Option - Benefits / Risks 10.45
10 16.4 FX Put Option 10.46
10 16.4 FX Put Option - Benefits / Risks 10.46
10 11 HEDGING CURRENCY RISK 10.25
10 11 (B) HEDGING CURRENCY RISK - External Techniques 10.27
10 11 (A) HEDGING CURRENCY RISK - Internal Techniques 10.25
10 17.4 High Risk: High Reward 10.49
10 17.3 High Risk: Low Reward 10.49
10 10.3 Importance of foreign exchange risk management cannot be overstated 10.24
10 8.1 Interest Rate Parity (IRP) 10.15
10 15.1 Interest Rate Swaps 10.43
10 8.3 International Fisher Effect (IFE) 10.18
10 11 (A) (i) Invoicing in Domestic Currency 10.25
10 16.5 IRS USD Floating to Fixed 10.47
10 12.2 Late Cancellation 10.34
10 12.2 Late Delivery 10.32
10 12.2 Late Extension 10.36
10 11 (A) (ii) Leading and Lagging 10.26
10 17.1 Low Risk: Low Reward 10.48
10 17.2 Low Risk: Reasonable Reward 10.48
10 9 Market Participants - FOREIGN EXCHANGE MARKET 10.21
10 6 Market-Based Forecasting 10.14
10 11 (A) (iv) Matching 10.26
10 5.9 Merchant Rates 10.12
10 6 Mixed Forecasting 10.14
10 11 (B) (i) Money Market Hedging 10.27
10 11 (B) (i) Money Market Hedging - Advantages and Disadvantages 10.28

By CA Vinay Kumar YT - Ultimate CA Warrior 18

 AFM Chapter+Topicwise (A-Z) Index
Forex
Topic
Ch Topic Name Pg No
Sequence
10 3 NATIONAL AND INTERNATIONAL PAYMENT GATEWAYS 10.5
10 11 (A) (iii) Netting 10.26
10 12.3 Non-deliverable Forward Contract 10.39
10 4 NOSTRO, VOSTRO AND LORO ACCOUNTS 10.6
10 14 OPTION CONTRACTS 10.41
10 14 Options and Futures - Distinction 10.41
10 5.5 Pips 10.9
10 16 POPULAR DERIVATIVE PRODUCTS 10.44
10 11 (A) (v) Price Variation 10.27
10 8.2 Purchasing Power Parity (PPP) 10.16
10 2 ROLE OF SWIFT IN FOREIGN EXCHANGE 10.3
10 12.4 Rollover of Deliverable Forward Contract 10.39
10 1 (a) Spot Market 10.2
10 17 STRATEGIES FOR EXPOSURE MANAGEMENT 10.47
10 15 SWAP CONTRACTS 10.42
10 6 Technical Forecasting 10.14
10 10.1 Transaction Exposure 10.22
10 10.2 Translation Exposure 10.23

By CA Vinay Kumar YT - Ultimate CA Warrior 19

 AFM Chapter+Topicwise (A-Z) Index
International Financial Management
Topic
Ch Topic Name Pg No
Sequence
11 5.1.1 Accelerating Cash Inflows 11.27
11 1.5 Adjusted Present Value (APV) 11.4
11 2.2 American Depository Receipts (ADRs) 11.16
11 3.1 Benefits of IFC 11.20
11 5.1.5 Bilateral Netting System 11.28
11 3.2 Constituents of IFC 11.21
11 2.5 Credit Instruments 11.20
11 1.4 Discount Rate and Adjusting Cash Flows 11.3
11 2.5 Euro Commercial Paper 11.20
11 2.5 Euro-bonds with Equity Warrants 11.19
11 2.5 Euro-bonds: 11.20
11 2.4 Euro-Convertible Bonds (ECBs) 11.19
11 2.5 Euro-Convertible Zero Coupon Bond 11.19
11 2.5 Foreign Bond 11.20
11 1.6.1 Foreign company is investing in India 11.5
11 2.1 Foreign Currency Convertible Bonds (FCCBs) 11.15
11 2.1 Foreign Currency Convertible Bonds (FCCBs) - Advantages 11.15
11 2.1 Foreign Currency Convertible Bonds (FCCBs) - Disadvantages 11.15
11 1.2 Foreign Investment Analysis - Problems 11.2
11 3.3 GIFT City - India’s International Financial Services Centre 11.21
11 2.3 Global Depository Receipts (GDRs) 11.16
11 2.3 Global Depository Receipts (GDRs) - Characteristics 11.17
11 2.3 Global Depository Receipts (GDRs) - Impact on Indian Capital Market 11.17
11 2.3 Global Depository Receipts (GDRs) - Markets 11.17
11 2.3 Global Depository Receipts (GDRs) - Mechanism 11.17
Indian Company is investing in foreign country by raising fund in different
11 1.6.3 11.11
country through the mode of Global Depository Receipts (GDRs)
Indian Company is investing in foreign country by raising fund in the same
11 1.6.2 11.8
country
11 1 INTERNATIONAL CAPITAL BUDGETING 11.1
11 1.1 INTERNATIONAL CAPITAL BUDGETING - Complexities Involved 11.1
11 3 INTERNATIONAL FINANCIAL CENTRE (GIFT CITY) 11.20
11 A INTERNATIONAL FINANCIAL MANAGEMENT 11.1
11 5.2 International Inventory Management 11.30
11 5.3 International Receivables Management 11.30
11 2 INTERNATIONAL SOURCES OF FINANCE 11.15

By CA Vinay Kumar YT - Ultimate CA Warrior 20

 AFM Chapter+Topicwise (A-Z) Index
International Financial Management
Topic
Ch Topic Name Pg No
Sequence
11 5 INTERNATIONAL WORKING CAPITAL MANAGEMENT 11.23
11 5.1.6 Investing Excess Cash 11.29
11 5.1.3 Leading and Lagging 11.27
11 5.1.2 Managing Blocked Funds 11.27
11 5.1.4 Minimising Tax on Cash Flows through Transfer Pricing Mechanism 11.27
11 5.1.5 Multilateral Netting System 11.28
11 5.1 Multinational Cash Management 11.24
11 5.1.5 Netting 11.28
11 5.1.5 Netting - Advantages 11.28
11 2.5 Other Sources 11.19
11 1.3 Project vis-a-vis Parent Cash Flows 11.3
11 4 SOVEREIGN FUNDS 11.22

By CA Vinay Kumar YT - Ultimate CA Warrior 21

 AFM Chapter+Topicwise (A-Z) Index
Interest Rate Risk Management
Topic
Ch Topic Name Pg No
Sequence
12 4.2.3.5 Amortising Swap 12.14
12 4.1.1 Asset and Liability Management (ALM) 12.7
12 4.2.3.5 Asset Swap 12.14
12 4.2.3.5 Basis Rate Swap 12.14
12 3.1.2 Basis Risk 12.5
12 2 BENCHMARK RATES 12.2
12 4.2.2.1 Cap Option 12.10
12 4.2.1(b) Cheapest to Deliver (CTD): 12.10
12 4.2.1(a) Conversion factor: 12.10
12 3.1.3 Embedded Option Risk 12.5
12 4.2.2.2 Floor Option 12.11
12 4.1.2 Forward Rate Agreements (FRAs) 12.7
12 3.1.1 Gap Exposure 12.4
12 4.2.2.3 Interest Rate Collars 12.12
12 4.2.1 Interest Rate Futures 12.9
12 4.2.2 Interest Rate Options 12.10
12 3 INTEREST RATE RISK 12.3
12 4 INTEREST RATE RISK - HEDGING 12.6
12 4.2 INTEREST RATE RISK - HEDGING - Modern Methods 12.9
12 4.1 INTEREST RATE RISK - HEDGING - Traditional Methods 12.6
12 3.1 Interest Rate Risk - Types 12.3
12 A INTEREST RATE RISK MANAGEMENT 12.1
12 4.2.3 Interest Rate Swaps 12.13
12 3.2 Measuring Interest Rate Risk 12.6
12 4.2.3.5 Plain Vanilla Swap 12.13
12 3.1.5 Price Risk 12.5
12 3.1.6 Reinvestment Risk 12.6
12 4.2.3.5 Swap - Types 12.13
12 4.2.4 Swaptions 12.14
12 4.2.4.2 Swaptions - Pricing 12.15
12 4.2.4.1 Swaptions - Principal features 12.14
12 4.2.4.3 Swaptions - Uses 12.15
12 3.1.4 Yield Curve Risk 12.5

By CA Vinay Kumar YT - Ultimate CA Warrior 22

 AFM Chapter+Topicwise (A-Z) Index
Business Valuation
Topic
Ch Topic Name Pg No
Sequence
13 9.3 Adjusted Present Value Model 13.29
13 4.2 Arbitrage Pricing Model 13.10
13 7 ARRIVING AT FAIR VALUE 13.26
13 3.1 Asset Based Approach 13.5
13 10.3.1 Berkus Approach 13.32
13 A BUSINESS VALUATION 13.1
13 4.1 Capital Assets Pricing Model (CAPM) 13.10
13 3.2.2 Capitalisation of Earning 13.8
13 3.3 Cash flow based approach 13.8
13 6.2 Chop-Shop Method 13.20
13 10.3.3 Comparable Transactions Method 13.33
13 1 CONCEPTUAL FRAMEWORK OF VALUATION 13.1
13 6.1 Contemporary Approaches to Valuation - LBOs (Leveraged Buy Outs) 13.19
13 6.1 Contemporary Approaches to Valuation - Price Earning Ratio (PER) 13.18
13 11.3 Cost Approach - Digital Platform 13.38
13 4 COST OF EQUITY - MEASURING 13.10
13 10.3.2 Cost-to-Duplicate Approach 13.33
13 9.2 DCF Valuation + Distress Value 13.28
13 11 DIGITAL PLATFORMS - VALUATION 13.35
13 9 DISTRESSED COMPANIES - VALUATION 13.27
13 6.3 Economic Value Added (EVA) 13.21
13 13 ESG - IMPACT ON VALUATION 13.39
13 4.3 Estimating Beta and Valuation of Unlisted Companies 13.11
13 10.3.5 First Chicago Method 13.34
13 8 GOING CONCERN AND NON-GOING CONCERN VALUATION 13.27
13 2 IMPORTANT TERMS ASSOCIATED WITH VALUATION 13.3
13 11.1 Income Approach - Digital Platform 13.36
13 3.2 Income based Approach 13.7
13 2.2 IRR (Internal Rate of Return) 13.3
13 11.2 Market Approach - Digital Platform 13.37
13 6.4 Market Value Added (MVA) 13.24
13 9.1 Modified Discounted Cash Flow Valuation 13.28
13 3.1.1 Net Asset Value 13.5
13 3.1.2 Net Realizable Value 13.6
13 6 OTHER APPROACHES TO VALUE MEASUREMENT 13.18
13 3.2.1 PE Ratio or Earning Yield Multiplier 13.7

By CA Vinay Kumar YT - Ultimate CA Warrior 23

 AFM Chapter+Topicwise (A-Z) Index
Business Valuation
Topic
Ch Topic Name Pg No
Sequence
13 2.4 Perpetual Growth Rate (Gordon Model) 13.4
13 12 PROFESSIONAL/ CONSULTANCY FIRMS - VALUATION 13.39
13 2.1 PV (Present Value) of cash flow 13.3
13 5 RELATIVE VALUATION 13.14
13 9.4 Relative Valuation 13.29
13 3.1.3 Replaceable Value 13.7
13 2.3 ROI (Return on investment) 13.3
13 10.3.4 Scorecard Valuation Method 13.33
13 6.5 Shareholder Value Analysis (SVA) 13.24
13 10 START UPS -VALUATION 13.29
13 10.1 START UPS -VALUATION -Why traditional methods cannot be applied? 13.30
13 10.3 Startups - Methods of valuation 13.32
13 10.2 Startups - Value Drivers 13.31
13 2.5 TV’ (Terminal Value) 13.5
13 3 VALUATION - APPROACHES/ METHODS 13.5
13 10.3.6 Venture Capital Method 13.34

By CA Vinay Kumar YT - Ultimate CA Warrior 24

 AFM Chapter+Topicwise (A-Z) Index
Mergers, Acquisitions and Corporate Restructuring
Topic
Ch Topic Name Pg No
Sequence
14 13 ACQUISITION THROUGH SHARES 14.24
14 4.4 Arranging Finance for Acquisition 14.10
14 14 CROSS-BORDER M&A 14.29
14 5.2 Defensive Tactics 14.11
14 7 DIVESTITURE 14.13
14 7.2.5 DIVESTITURE - Demerger or Division of Family-Managed Business 14.15
14 7.2 DIVESTITURE - Different Forms 14.14
14 7.2.4 DIVESTITURE - Equity Carve outs 14.15
14 7.2.1 DIVESTITURE - Sell off / Partial Sell off 14.14
14 7.1 DIVESTITURE - Seller’s Perspective 14.13
14 7.2.2 DIVESTITURE - Spin-off 14.14
14 7.2.3 DIVESTITURE - Split-up 14.14
14 9.4 Equity buyback 14.20
14 4.3 Financial Evaluation 14.10
14 8 FINANCIAL RESTRUCTURING 14.16
14 9.1 Going Private 14.19
14 9.3 Leveraged Buyout (LBO) 14.19
14 9.2 Management Buyouts 14.19
14 4 MERGERS - FINANCIAL FRAMEWORK 14.8
14 3 MERGERS - FORMS (TYPES) 14.6
14 2 MERGERS AND ACQUISITIONS - RATIONALE 14.4
14 12 MERGERS AND ACQUISITIONS FAILURES 14.23
14 4.1 Mergers or Synergy - Gains 14.8
14 A MERGERS, ACQUISITIONS & CORPORATE RESTRUCTURING 14.1
14 9 OWNERSHIP RESTRUCTURING 14.19
14 11 PREMIUM AND DISCOUNT 14.22
14 6 REVERSE MERGER 14.12
14 4.2 Scheme of Amalgamation or Merger 14.9
14 15 SPECIAL PURPOSE ACQUISITION COMPANIES 14.29
14 5.1 Take Over Strategies 14.10
14 5 TAKEOVER DEFENSIVE TACTICS 14.10
UNLOCKING THE VALUE THROUGH MERGERS & ACQUISITIONS AND BUSINESS
14 10 14.22
RESTRUCTURING

By CA Vinay Kumar YT - Ultimate CA Warrior 25

 AFM Chapter+Topicwise (A-Z) Index
Start-Up Finance
Topic
Ch Topic Name Pg No
Sequence
15 5.1.2 Angel Investors 15.12
15 5.1.1 Bootstrapping 15.10
15 5.1.1 Bootstrapping - some of methods by which startup firm can bootstrap 15.10
15 8.3 Business succession strategy 15.22
15 3 PITCH PRESENTATION 15.3
15 2 STARTUP - INNOVATIVE WAYS TO FINANCE 15.2
15 5 STARTUP - MODES OF FINANCING 15.10
15 5.1 STARTUP - Sources of financing 15.10
15 1 STARTUP FINANCING - BASICS 15.1
15 7 STARTUP INDIA INITIATIVE 15.18
15 8 SUCCESSION PLANNING IN BUSINESS 15.21
15 8.4 SUCCESSION PLANNING IN BUSINESS - Challenges 15.22
15 8.2 SUCCESSION PLANNING IN BUSINESS - Need? 15.21
15 4 UNICORN 15.6
15 5.1.3.3 Ventue Capital - Advantages of bringing VC in the company 15.13
15 5.1.3.4 Ventue Capital - Stages of funding for VC 15.13
15 5.2 Ventue Capital - VC Investment Process 15.14
15 5.1.3.2 Venture Capital Financing - Characteristics 15.13
15 5.1.3 Venture Capital Fund 15.12
15 6.2 Venture Capital Fund - Structure in India 15.17
15 6 VENTURE CAPITAL FUNDS IN INDIA 15.16

By CA Vinay Kumar YT - Ultimate CA Warrior 26