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    Chapter wise weightage in ca final

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    18 views8 pages

    CA Final AFM Chapter Weightage

    Uploaded by

    yoyoabhi189
    Chapter wise weightage in ca final

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 8

    PAPER – 2: ADVANCED FINANCIAL

    MANAGEMENT (100 Marks)

    Objective
    To acquire the ability to apply financial management theories and
    techniques in strategic decision making.
    Contents Section Weightage
    (1) Financial Policy and Corporate
    Strategy
    (i) Advanced role of CFO in various
    matters including Value Creation
    (ii) 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 I 8% – 15%
    (iii) Value at Risk (VAR)
    (iv) Evaluation of appropriate method
    for the identification and
    management of financial risk.
    (3) Advanced Capital Budgeting
    Decisions
    (i) Current trends in Capital
    Budgeting
    ♦ Impact of Inflation on Capital
    Budgeting Decisions.
    ♦ Impact of change in
    technology on Capital
    Budgeting
    ♦ Impact of change in
    Government Policies on
    Capital Budgeting
    (ii) Dealing with Risk in Investment
    Decisions
    (iii) Internal and External Factors
    affecting capital budgeting
    decision
    (iv) Methods of incorporating risk in
    Capital Budgeting
    (iv) Adjusted Present Value
    (v) Optimum Replacement Cycle
    (4) Security Analysis
    (i) Fundamental Analysis
    (ii) Technical Analysis
    - Meaning
    - Assumptions
    - Theories and Principles
    - Charting Techniques - Basics
    - Efficient Market Hypothesis
    (EMH) Analysis
    (iii) Equity Research and tools
    available
    (5) Security Valuation II 20% – 30%
    (i) Theory of Valuation
    (ii) Return Concepts
    (iii) Equity Risk Premium
    (iv) Required Return on Equity
    (v) Discount Rate Selection in Relation
    to Cash Flows
    (vi) Approaches to Valuation of Equity
    Shares
    (vii) Valuation of Preference Shares
    (viii) Valuation of Debentures/ Bonds
    (ix) Role and Responsibilities of
    Valuers
    (x) Precautions need to be taken by a
    Valuer before accepting any
    valuation assignment.
    (6) 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 Avenues
    - Real Estate
    - Gold
    - Private Equity
    - REITs
    - Hedge Funds
    - ETFs
    - Mutual Funds
    - Commodities
    (7) Securitization
    (i) Introduction
    (ii) Concept and Definition
    (iii) Benefits of Securitization
    (iv) Participants in Securitization 20% – 30%
    (v) Mechanism of Securitization
    (vi) Problems in Securitization
    (vii) Securitization Instruments
    (viii) Pricing of Securitization
    Instruments
    (ix) Risks in Securitization
    (x) Tokenization
    (xi) Securitization in India
    (8) Mutual Funds
    (i) Meaning
    (ii) Types
    (iii) Advantages and Disadvantages of
    Mutual Funds
    (iv) Evaluation of Mutual Funds
    (v) Role of Fund Manager in Mutual
    Funds
    (vi) Hedge Funds
    (vii) Role of FIIs in Mutual Funds
    (9) Derivatives Analysis and Valuation
    (i) Introduction to Forwards, Futures
    and Options
    (ii) Futures Market
    (iii) Pricing of Forwards and Futures
    (iv) Hedging using Futures
    (v) Options
    - Option Pricing
    - Option Greeks
    - Exotic Options
    (vi) Credit Derivatives
    (vii) Real Options
    (viii) Derivative Mishaps and Lessons
    (ix) Swaps
    (x) Commodity Derivatives
    (xi) Weather Derivatives
    (xii) Electricity Derivatives
    (10) Foreign Exchange Exposure and Risk
    Management
    (i) Factors affecting foreign exchange
    rate
    (ii) Role of SWIFT in Foreign
    Exchange
    (iii) National and International
    Payment Gateways
    (v) Exchange rate determination
    (vi) Foreign currency market
    (vii) Management of Foreign Exchange
    Risk
    (11) International Financial Management
    (i) International Capital Budgeting
    - Offshore Investment Strategies
    vis-à-vis Domestic Capital
    Budgeting
    - Project vis-à-vis Parent Cash
    IV 20% – 25%
    Flows
    - Discounting Rate and Adjusting
    Cash Flows
    - Adjusted Present Value
    (ii) Raising funds from International
    Sources
    (iii) Sovereign Funds
    (iv) International Financial Centre
    (GIFT City)
    (v) International Working Capital
    Management
    a) Multinational Cash
    Management
    • Objectives of Effective
    Cash Management
    • Optimization of Cash
    Flows/ Needs
    b) Multinational Receivable
    Management
    c) Multinational Inventory
    Management
    (12) Interest Rate Risk Management
    (i) Benchmark Rates
    (ii) Interest Rate Risk
    (iii) Hedging Interest Rate Risk
    - Traditional Methods
    • Asset and Liability
    Management (ALM)
    • Forward Rate
    Agreement (FRA)
    - Modern Methods including
    Interest Rate Derivatives
    • Interest Rate Futures
    • Interest Rate Options
    • Swaps
    • Swaptions

    (13) Business Valuation


    (i) Conceptual Framework of
    Valuation
    (ii) Approaches/ Methods of Valuation
    - Assets Based Valuation
    Model
    - Earning Based Models
    - Cash Flow Based Models V 10% – 15%
    - Measuring Cost of Equity
    • Capital Asset Pricing
    Model (CAPM)
    • Arbitrage Pricing
    Theory
    • Estimating Beta of an
    unlisted company
    - Relative Valuation
    • Steps involved in
    Relative Valuation
    • Equity Valuation
    Multiples
    • Enterprise Valuation
    Multiple
    - Other Approaches to Value
    Measurement
    • Economic Value
    Added (EVA)
    • Market Value Added
    (MVA)
    • Shareholder Value
    Analysis (SVA)
    - Arriving at Fair Value
    (iii) Going concern and Non Going
    concern valuation
    (iv) Valuation of Distressed Companies
    (v) Valuation of Start ups
    (vi) Valuation of Digital Platforms
    (vii) Valuation of Professional/
    Consultancy Firms
    (viii) Impact of ESG on valuation
    (14) Mergers, Acquisitions and Corporate
    Restructuring
    (i) Conceptual Framework
    (ii) Rationale
    (iii) Forms
    (iv) Mergers and Acquisitions
    - Financial Framework
    - Takeover Defensive Tactics
    - Reverse Merger
    (v) Divestitures
    - Partial Sell off
    - Demerger
    - Equity Carve outs
    (vi) Ownership Restructuring
    - Going Private
    - Management/ Leveraged
    Buyouts
    (vii) Unlocking the value through
    Mergers & Acquisitions and
    Business Restructuring
    (viii) Cross Border Mergers
    (ix) Special Purpose Acquisition
    Companies (SPACs)
    (15) Startup Finance
    (i) Introduction including Pitch
    Presentation
    (ii) Concept of Unicorn VI 2% – 5%
    (iii) Startup Initiative of GOI
    (iv) Sources of Funding
    (v) Succession planning in Business

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