The Board of Studies (BoS) of the Institute of Chartered Accountant of India (ICAI) has now assigned weightage of marks to various sections of a subject. This facility would help students to plan their studies in a structured manner for the coming ICAI examinations.
Accordingly, each subject has been divided into various topics and topics have been grouped into sections and weightage range has been assigned to these sections. The question paper would take into consideration the weightage range assigned to different sections.
Following are the detail section wise weightage of marks assigned to the Paper-2 Strategic Financial Management of CA Final course examination to be held in Nov 2023 under New Scheme of Education and Training.
Strategic Financial Management: Section wise Marks Weightage
| Section | Weightage | Contents |
|---|---|---|
| I | 5% – 10% | 1. Financial Policy and Corporate Strategy (i) Strategic decision making framework (ii) Interface of Financial Policy and strategic management (iii) Balancing financial goals vis-à-vis sustainable growth. 2. Risk Management (i) Identification of types of Risk faced by an organisation (ii) Evaluation of Financial Risks (iii) Value at Risk (VAR) (iv) Evaluation of appropriate method for the identification and management of financial risk. |
| II | 20% – 30% | 3. Security Analysis (i) Fundamental Analysis (ii) Technical Analysis (a) Meaning (b) Assumptions (c) Theories and Principles (d) Charting Techniques (e) Efficient Market Hypothesis (EMH) Analysis 4. Security Valuation (i) Theory of Valuation (ii) Role of Financial Market in Economic Development (iii) Return Concepts (iv) Equity Risk Premium (v) Required Return on Equity (vi) Discount Rate Selection in Relation to Cash Flows (vii) Approaches to Valuation of Equity Shares (viii) Valuation of Preference Shares (ix) Valuation of Debentures/ Bonds 5. Portfolio Management (i) Portfolio Analysis (ii) Portfolio Selection (iii) Capital Market Theory (iv) Portfolio Revision (v) Portfolio Evaluation (vi) Asset Allocation (vii) Fixed Income Portfolio (viii) Risk Analysis of Investment in Distressed Securities (ix) Alternative Investment Strategies in context of Portfolio Management |
| III | 20% – 25% | 6. Securitization (i) Introduction (ii) Concept and Definition (iii) Benefits of Securitization (iv) Participants in Securitization (v) Mechanism of Securitization (vi) Problems in Securitization (vii) Securitization Instruments (viii) Pricing of Securitization Instruments (ix) Securitization in India 7. Mutual Funds (i) Meaning (ii) Evolution (iii) Types (iv) Advantages and Disadvantages of Mutual Fund 8. Derivatives Analysis and Valuation (i) Forward/ Future Contract (ii) Options (iii) Swaps (iv) Commodity Derivatives |
| IV | 20% – 30% | 9. Foreign Exchange Exposure and Risk Management (i) Exchange rate determination (ii) Foreign currency market (iii) Management of transaction, translation and economic exposures (iv) Hedging currency risk (v) Foreign exchange derivatives – Forward, futures, options and swaps 10. International Financial Management (i) International Capital Budgeting (ii) International Working Capital Management 11. Interest Rate Risk Management (i) Interest Rate Risk (ii) Hedging Interest Rate Risk |
| V | 10% – 15% | 12. Corporate Valuation (i) Conceptual Framework of Valuation (ii) Approaches/ Methods of Valuation 13. Mergers, Acquisitions and Corporate Restructuring (i) Conceptual Framework (ii) Rationale (iii) Forms (iv) Mergers and Acquisitions (v) Divestitures (vi) Ownership Restructuring (vii) Cross Border Mergers |
| VI | 5% – 10% | 14. Startup Finance (i) Introduction including Pitch Presentation (ii) Sources of Funding (iii) Start up India Initiative |
Chapter wise weightage of CA Final Paper-2 SFM
| Chapter Number | Weightage of Marks | Chapter Name and Topics |
|---|---|---|
| Chapter-1 Chapter-2 | 5-10 Marks | 1. Financial Policy and Corporate Strategy 2. Risk Management |
| Chapter-3 Chapter-4 Chapter-5 | 20-30 Marks | 3. Security Analysis 4. Security Valuation 5. Portfolio Management |
| Chapter-6 Chapter-7 Chapter-8 | 20-25 Marks | 6. Securitization 7. Mutual Funds 8. Derivatives Analysis and Valuation |
| Chapter-9 Chapter-10 Chapter-11 | 20-30 Marks | 9. Foreign Exchange Exposure and Risk Management 10. International Financial Management 11. Interest Rate Risk Management |
| Chapter-12 Chapter-13 | 10-15 Marks | 12. Corporate Valuation 13. Mergers, Acquisitions and Corporate Restructuring |
| Chapter-14 | 5-10 Marks | 14. Startup Finance |