This program has been designed to analyze and interpret their corporate customers’ cash flow statements at an Intermediate Level.

By the end of this program, delegates should be able to:

·         State, compute and interpret the Primary Cash Sufficiency measures including Cash Flow Interest Cover and Debt Service Cover Ratios

·         Compute and interpret: Free Cash Flow; Depreciation Impact Ratio; Recapitalization Ratio

·         State, compute and interpret the Key Cash Efficiency Ratios

·         Compute and interpret Cash Flows from Investing Activities

·         Compute and interpret Cash Flows from Financing Activities

·         Compute and interpret the correlation between CFI and CFF

Relationship Managers, Credit Risk Officers, Financial and Credit Analysts whose job responsibilities include analyzing and interpreting corporate cash flow. It will be assumed that the delegates are familiar with credit analysis as a subject and how cash flow statements are derived.

Fundamentals of Accounting

·         The modern concept of accountability as a system of information.

·         Outputs of accounting system.

·         Foundations of Accounting Measurement

o   (Accrual Basis - Cash Basis – mixed basis)

·         The reasons for the shift to an accrual basis.

·         Questions for discussion.

Prepare Statement of Cash Flows

·         The concept of cash flows.

·         Types of cash flows. Sources of cash flows.

o   (Cash inflows from: Operating activities - investing activities - financing activities)

o   (Cash outflows from: Operating activities - investing activities - financing activities)

·         List the components of cash flows.

·         The importance of preparing the cash flow statement.

·         Objectives of the statement of cash flows.

·         The general form of the statement of cash flows.

·         Methods of preparing the statement of cash flows.

o   (Direct method - Indirect method)

·         Applications and Case Studies on the preparation of cash flow statement in the manner of direct and indirect.

Strategic Analysis of Information Statement of Cash Flows

·         Use internal and external financial information to the list of cash flows.

·         Analysis of cash flow information.

·         Efficient access to cash flows.

·         Free cash flow.

·         Evaluation of liquidity.

o   (The concept of liquidity, financial hardship, degrees of liquidity, the liquidity measure)

·         Practical situations.

The integrated framework for risk management

·         The concept of risk.

·         Types of risks.

·         The concept of risk management.

·         The importance of risk management.

·         Techniques (tools) to identify risks.

·         Principles of risk management.

·         Risk management functions.

·         Stages of risk management.

·         The risk management process steps.

·         Areas of application of risk management.

·         Risk management activities.

·         Questions for discussion.

Documentary Credits and Letters of Guarantee

·         The concept of credit and letters of guarantee.

·         Elements of credit and letters of guarantee.

·         Types of credit and letters of guarantee

·         The importance and objectives of documentary credits.

·         Parties and relationships that arise from documentary credits and stages of implementation.

·         Steps and procedures for the process of opening the document.

·         Data contained in the request that the document is opened.

·         The obligations incumbent on the parties to the letter of guarantee.

·         Bank guarantees on letters of guarantee.

·         Letters of credit risk.

·         Practical situations

A variety of methodologies will be used during the course that includes:

·         (30%) Based on Case Studies

·         (30%) Techniques 

·         (30%) Role Play

·         (10%) Concepts

·         Pre-test and Post-test

·         Variety of Learning Methods

·         Lectures

·         Case Studies and Self Questionaires

·         Group Work

·         Discussion

·         Presentation

This rate includes participant’s manual, Hand-Outs, buffet lunch, coffee/tea on arrival, morning & afternoon of each day.

Daily Course Timings:

    08:00 - 08:20       Morning Coffee / Tea

    08:20 - 10:00       First Session

    10:00 - 10:20       Coffee / Tea / Snacks

    10:20 - 12:20       Second Session

    12:20 - 13:30       Lunch Break & Prayer Break

    13:30 - 15:00       Last Session