Aakash Abhay Joshi - FP&A and Financial Analysis Flashcards

Vocabulary flashcards defining core FP&A concepts, financial modeling ratios, credit risk metrics, systems, and key quantitative achievements from lecture notes across S&P Global, L&T Finance, and Sundaram Finance.

Annual Operating Plan (AOP)

The company's detailed financial plan for an upcoming operating period, which incorporates expectations for revenue, operating expenses, headcount or resource costs, profitability, investment requirements, and departmental spending.

Rolling Forecast

A continuous financial planning process that updates management expectations using the latest available financial results and business conditions rather than relying solely on a fixed annual budget.

Variance Analysis

The financial analysis process of comparing actual performance against planned budgets or forecasts to identify differences and explain the underlying operational drivers behind revenue and expense movements.

Net Interest Margin (NIM)

A core profitability metric in lending financial institutions calculated as interest income minus interest/funding costs, measuring core margin performance relative to the lender's funding base.

Asset Liability Management (ALM)

The practice of managing the timing, cost, and maturity alignment between a lending company's assets (loans generating inflows) and liabilities (borrowings generating outflows) to prevent liquidity and funding risks.

Funding Cost

The total cost incurred by a financial institution to borrow or obtain funds that are subsequently deployed to finance lending activities.

Debt Service Coverage Ratio (DSCR)

A key credit metric used in borrower financial analysis to assess whether a borrower generates sufficient cash flow to satisfy their debt repayment obligations.

Fixed Obligation to Income Ratio (FOIR)

A credit affordability metric that measures the proportion of a borrower's income already committed to fixed debt payments, such as existing and proposed EMIs.

Loan-to-Value Ratio (LTV)

A financial risk ratio that measures the size of a loan relative to the underlying collateral or asset value, expressed mathematically as $\text{LTV} = \frac{\text{Loan Amount}}{\text{Asset Value}}$.

Special Mention Account (SMA)

Regulatory early-warning classification tiers (SMA 0, SMA 1, and SMA 2) used by financial institutions to track initial stages of payment delinquency before an account becomes non-performing.

Anaplan

An enterprise platform used in corporate FP&A for connected financial planning, budgeting, forecasting, and scenario modeling.

SAP S/4HANA

An enterprise financial system utilized for maintaining financial information, corporate reporting, and business finance execution.

Power Query

A data transformation tool used to clean, combine, transform, and refresh financial datasets in a repeatable and automated manner.

Alteryx

A software platform used to automate data preparation, transformation workflows, and recurring financial reporting processes.

CIBIL and Experian

Credit information bureaus accessed during credit assessments to evaluate a borrower's credit history, existing obligations, enquiry history, and repayment behavior.

Management Information System (MIS) Reporting

Periodic reporting structured to consolidate portfolio metrics—such as loan disbursements, collections, delinquency, and budget performance—into actionable reporting for management.

S&P Global FP&A Automation Impact

The streamlining of recurring financial data preparation using Python, Alteryx, and Power Query, which reduced manual work by $20\%$.

L&T Finance Reporting Automation Impact

The enhancement of executive dashboards and reporting workflows using Power BI, SQL, and SAP S/4HANA, which reduced manual reporting effort by $22\%$ across $15+$ regional branches.

Sundaram Finance Operational Metrics

Key financial performance achievements including financial evaluation of $200+$ borrowers, restructuring support for $1,000+$ accounts during COVID-19, an $18\%$ reduction in reporting turnaround time, and $99\%$ data accuracy during statutory and internal audits.