CA Intermediate Course 2020- Syllabus:
Contents-
1. Process of formulation of Accounting Standards including Ind ASs (IFRS converged standards) and IFRSs; convergence vs adoption; objective and concepts of carve outs.
2. Framework for Preparation and Presentation of Financial Statements (as per Accounting Standards).
3. Application of Accounting Standards:
AS 1 : Disclosure of Accounting Policies
AS 2 : Valuation of Inventories
AS 3 : Cash Flow Statements
AS 4 : Contingencies and Events occurring after the Balance Sheet Date
AS 5 : Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies
AS 10 : Property, Plant and Equipment
AS 11 : The Effects of Changes in Foreign Exchange Rates
AS 12 : Accounting for Government Grants
AS 13 : Accounting for Investments
AS 16 : Borrowing Costs
AS 17 : Segment Reporting
AS 22 : Accounting for Taxes on Income
4. Company Accounts
i. Preparation of financial statements - Statement of Profit and Loss, Balance Sheet and Cash Flow Statement;
ii. Managerial Remuneration;
iii. Accounting for tax: Concept of deferred tax asset and deferred tax liability in line with AS 22 “Accounting for Taxes”;
iv. Profit (Loss) prior to incorporation;
v. Accounting for bonus issue and right issue;
vi. Redemption of preference shares;
vii. Redemption of debentures.
5. Accounting for Special Transactions
I. Investment;
ii. Insurance claims for loss of stock and loss of profit;
iii. Hire - purchase and Instalment sale transactions.
6. Special Type of Accounting
i. Departmental accounting;
ii. Accounting for branches including foreign branches;
iii. Accounts from incomplete records.
7. Dissolution of partnership firms including piecemeal distribution of assets; Amalgamation of partnership firms; Conversion of partnership firm into a company and Sale to a company; Issues related to accounting in Limited Liability Partnership.
NOTE If either new Accounting Standards (AS), Announcements and Limited Revisions to AS are issued or the earlier ones are withdrawn or new AS, Announcements and Limited Revisions to AS are issued in place of existing AS, Announcements and Limited Revisions to AS, the syllabus will accordingly include / exclude such new developments in the place of the existing ones with effect from the date to be notified by the Institute.
Part I: Company Law (60 Marks)
Contents-
The Companies Act, 2013 - Sections 1 to 148
1. Preliminary
2. Incorporation of Company and Matters Incidental thereto
3. Prospectus and Allotment of Securities
4. Share Capital and Debentures
5. Acceptance of Deposits by companies
6. Registration of Charges
7. Management and Administration
8. Declaration and payment of Dividend
9. Accounts of Companies
10. Audit and Auditors.
NOTE The provisions of the Companies Act, 1956 which are still in force would form part of the syllabus till the time their corresponding or new provisions of the Companies Act, 2013 are enforced.
Part II: Other Laws (40 Marks)
Contents-
1. The Indian Contract Act, 1872 (Specific contracts covered from section 123 onwards): Contract of Indemnity and Guarantee, Bailment, Pledge, Agency.
2. The Negotiable Instruments Act, 1881: Meaning of Negotiable Instruments, Characteristics, Classification of Instruments, Different provisions relating to Negotiation, Negotiability, Assignability, Right and Obligation of parties, presentment of Instruments, Rules of Compensation.
3. The General Clauses Act, 1897: Important Definitions, Extent and Applicability, General Rules of Construction, Powers and Functionaries, Provisions as to Orders, Rules, etc. made under Enactments, Miscellaneous.
4. Interpretation of Statutes: Rules of Interpretation of statutes, Aids to interpretation, Rules of Interpretation / construction of Deeds and Documents.
NOTE If new legislations are enacted in place of the existing legislations, the syllabus would include the corresponding provisions of such new legislations with effect from a date notified by the Institute. Similarly, if any existing legislation ceases to have effect, the syllabus will accordingly exclude such legislation with effect from the date to be notified by the Institute.
The specific inclusions/exclusions in the various topics covered in the syllabus will be effected every year by way of Study Guidelines, if required.
Paper 3- Cost and Management Accounting: One Paper - Three Hours - 100 Marks
Contents-
1. Overview of Cost and Management Accounting
i. Introduction to Cost and Management Accounting
a. Objectives and Scope of Cost and Management Accounting,
b. The users of Cost and Management accounting information, Functions of management accounting.
c. Role of cost accounting department in an organisation and its relation with other departments.
d. Installation of Costing System
e. Relationship of Cost Accounting, Financial Accounting, Management Accounting and Financial Management.
f. Cost terms and Concepts
g. Cost Reduction and Cost Control
h. Elements of Costs
i. Cost behaviour pattern, Separating the components of fixed, variable, semi-variable and step costs.
j. Methods of Costing, Techniques of Costing.
k. Cost Accounting with use of Information Technology.
ii. Elements of Cost and preparation of Cost Sheets
a. Functional classification and ascertainment of cost
b. Preparation of Cost Sheets for Manufacturing sector and for Service sector
2. Ascertainment of Cost and Cost Accounting System
i. Material Cost
a. Procurement procedures- Store procedures and documentation in respect of receipts and issue of stock, Stock verification,
b. Valuation of material receipts,
c. Inventory control
- Techniques of fixing level of stocks- minimum, maximum, re-order point, safety stock, determination of optimum stock level,
- Determination of Optimum Order quantity- Economic Order Quantity (EOQ),
- Techniques of Inventory control- ABC Analysis, Fast, slow moving and Non-moving (FSN), High,
- Medium, Low (HML), Vital, Essential, Desirable (VED), Just-in-Time (JIT)- Stock taking and perpetual inventory system, use of control ratios,
d. Inventory Accounting
e. Consumption- Identification with products of cost centres, Basis for consumption entries in financial accounting, monitoring consumption.
ii. Employee Cost
a. Attendance and Payroll procedures
- Elements of wages- Basic pay, Dearness Allowance, Overtime, Bonus, Holiday and leave wages, Allowances and perquisites.
b. Employee Cost Control
c. Employee Turnover- Methods of calculating employee turnover, causes of employee turnover, effects of employee turnover.
d. Utilisation of Human Resource, Direct and indirect employee Cost, charging of employee cost, Identifying employee hours with work orders or batches or capital jobs.
e. Remuneration systems and incentive schemes Time Rate System, Piece Rate System, Differential piece rate system, Calculation of wages, Effective Wages.
iii. Direct Expenses
a. Direct expenses
b. Nature of Direct or Chargeable expenses.
c. Sub-contracting- Control on material movements, Identification with the main product or service.
iv. Overheads
a. Functional analysis- Factory, Administration, Selling, Distribution, Research and Development.
b. Behavioural analysis- Fixed, Variable and Semi- Variable.
c. Allocation and Apportionment of overheads using Absorption Costing Method.
d. Factory Overheads- Primary and secondary distribution,
e. Administration Overheads- Method of allocation to cost centres or products,
f. Selling & Distribution Overheads- Analysis and absorption of the expenses in products/ customers, impact of marketing strategies, cost effectiveness of various methods of sales promotion.
g. Treatment of Research and development cost in cost accounting.
v. Concepts of Activity Based Costing (ABC)
vi. Recording and Accounting of Costs
a. Non-integrated Cost Accounting system- Ledger under non-integral system
b. Integrated (Cost and Financial) Accounting system- Ledgers under integral system.
c. Difference between the Non- integrated and Integrated Accounting system.
d. Reconciliation of profit as per Cost and Financial Accounts (under Non-Integrated Accounting System).
3. Methods of Costing
i. Single Output/ Unit Costing
ii. Job Costing: Job cost cards and databases, collecting direct costs of each job, attributing overheads to jobs, Application of job costing.
iii. Batch Costing: Determination of optimum batch quantity, Ascertainment of cost for a batch, Preparation of batch cost sheet, Treatment of spoiled and defective work.
iv. Contract Costing
a. Ascertainment of cost of a contract, Progress payment, Retention money, Escalation clause, Cost plus contract, Value of work certified, Cost of Work not certified.
b. Determination Value of work certified, Cost of work not certified, Notional or Estimated profit from a contact.
v. Process / Operation Costing
a. Process cost recording, Process loss, Abnormal gains and losses, Equivalent units of production, Inter-process profit, Valuation of work in process.
b. Joint Products- Apportionment of joint costs, Methods of apportioning joint cost over joint products,
c. By-products- Methods of apportioning joint costs over by-products, treatment of By-product cost.
vi. Costing of Service Sectors
a. Determination of Costs and Prices of services of following sectors/ Industries:
- Transport, Toll roads, Hospitals, Canteen/ Restaurants, Hotels/ Lodges, Educational Institutions, Financial Institutions/ Banks, Insurance, IT sector and other services.
D. Cost Control and Analysis
i. Standard Costing
a. Setting up of Standards, Types of Standards, Standard Costing as method of performance measurement.
b. Calculation and Reconciliation of Cost Variances-
- Material Cost Variance, employee Cost Variance, Variable Overheads Variance and Fixed Overhead Variance.
ii. Marginal Costing
a. Basic concepts of marginal costing, Contribution margin, Break-even analysis, Break –even and profit volume charts, Contribution to sales ratio, Margin of Safety, Angle of Incidence, Cost-Volume-Profit Analysis (CVP), Multi- product break- even analysis, Consideration of Limiting factor (key factor),
b. Determination of Cost of a product/ service under marginal costing method, determination of cost of finished goods, work-in-progress,
c. Comparison of Marginal costing with absorption costing method- Reconciliation of profit under the both methods,
d. Short term decision making using the above concepts (basic / fundamental level).
iii. Budget and Budgetary Control
a. Meaning of Budget, Essentials of Budget, Budget Manual, Budget setting process, Preparation of Budget and monitoring procedures.
b. The use of budget in planning and control
c. Flexible budget, Preparation of Functional budget for operating and non- operating functions, Cash budget, Master budget,
d. Introduction to Principal/ Key budget factor, Zero Based Budgeting (ZBB), Performance budget, Control ratios and Budget variances.
Section A: Income-tax Law (60 Marks)
Contents
1. Basic Concepts
i. Income-tax law: An introduction
ii. Important definitions in the Income-tax Act, 1961
iii. Concept of previous year and assessment year
iv. Basis of Charge and Rates of Tax
2. Residential status and scope of total income
i. Residential status
ii. Scope of total income
3. Incomes which do not form part of total income (other than charitable trusts and institutions, political parties and electoral trusts)
i. Incomes not included in total income
ii. Tax holiday for newly established units in Special Economic Zones
4. Heads of income and the provisions governing computation of income under different heads
i. Salaries
ii. Income from house property
iii. Profits and gains of business or profession
iv. Capital gains
v. Income from other sources
5. Income of other persons included in assessee's total income
i. Clubbing of income: An introduction
ii. Transfer of income without transfer of assets
iii. Income arising from revocable transfer of assets
iv. Clubbing of income of income arising to spouse, minor child and son's wife in certain cases
v. Conversion of self-acquired property into property of HUF
6. Aggregation of income; Set-off, or carry forward and set-off of losses
i. Aggregation of income
ii. Concept of set-off and carry forward and set-off of losses
iii. Provisions governing set-off and carry forward and set-off of losses under different heads of income
iv. Order of set-off of losses
7. Deductions from gross total income
i. General provisions
ii. Deductions in respect of certain payments
iii. Specific deductions in respect of certain income
iv. Deductions in respect of other income
v. Other deductions
8. Computation of total income and tax liability of individuals
i. Income to be considered while computing total income of individuals
ii. Procedure for computation of total income and tax liability of individuals
9. Advance tax, tax deduction at source and introduction to tax collection at source
I. Introduction
ii. Direct Payment
iii. Provisions concerning deduction of tax at source
iv. Advance payment of tax
v. Interest for defaults in payment of advance tax and deferment of advance tax
vi. Tax collection at source - Basic concept
vii. Tax deduction and collection account number
10 Provisions for filing return of income and self-assessment
i. Return of Income
ii. Compulsory filing of return of income
iii. Fee and Interest for default in furnishing return of income
iv. Return of loss
v. Provisions relating to belated return, revised return etc.
vi. Permanent account number
vii. Persons authorized to verify return of income
viii. Self-assessment.
Section B: Indirect Taxes (40 Marks)
Contents-
1. Concept of indirect taxes
i. Concept and features of indirect taxes
ii. Principal indirect taxes
2. Goods and Services Tax (GST) Laws
i. GST Laws: An introduction including Constitutional aspects
ii. Levy and collection of CGST and IGST
a. Application of CGST/IGST law
b. Concept of supply including composite and mixed supplies
c. Charge of tax
d. Exemption from tax
e. Composition levy
iii. Basic concepts of time and value of supply
iv. Input tax credit
v. Computation of GST liability
vi. Registration
vii. Tax invoice; Credit and Debit Notes; Electronic way bill
viii. Returns
ix. Payment of tax including reverse charge
NOTE If any new legislation(s) is enacted in place of an existing legislation(s), the syllabus will accordingly include the corresponding provisions of such new legislation(s) in place of the existing legislation(s) with effect from the date to be notified by the Institute. Similarly, if any existing legislation ceases to have effect, the syllabus will accordingly exclude such legislation with effect from the date to be notified by the Institute. Students shall not be examined with reference to any particular State GST Law.
Consequential/corresponding amendments made in the provisions of the Income-tax law and Goods and Services Tax laws covered in the syllabus of this paper which arise out of the amendments made in the provisions not covered in the syllabus will not form part of the syllabus. Further, the specific inclusions/exclusions in the various topics covered in the syllabus will be effected every year by way of Study Guidelines. The specific inclusions/exclusions may also arise due to additions / deletions every year by the Annual Finance Act.
Group II - Paper 5- Advanced Accounting: One Paper - Three Hours - 100 Marks
Contents-
1. Application of Accounting Standards
AS 7 : Construction Contracts
AS 9 : Revenue Recognition
AS 14: Accounting for Amalgamations
AS 18 : Related Party Disclosures
AS 19: Leases
AS 20 : Earnings Per Share
AS 24 : Discontinuing Operations
AS 26 : Intangible Assets
AS 29 : Provisions, Contingent Liabilities and Contingent Assets.
2. Application of Guidance Notes issued by the ICAI on specified accounting aspects.
3. Special Aspects of Company Accounts
i. Accounting for employee stock option plan;
ii. Buy back of securities;
iii. Equity shares with differential rights;
iv. Underwriting of shares and debentures.
4. Reorganization of Companies
i. Accounting for amalgamation (excluding inter-company holding) and reconstruction;
ii. Accounting involved in liquidation of companies.
5. Financial Reporting of Banking, Financial Services and Insurance (BFSI)
i. Insurance Companies;
ii. Banking companies;
iii. Non-Banking Financial Companies;
iv. Mutual funds
and regulatory requirements thereof.
6. Valuation of goodwill
7. Consolidated Financial Statements
Concept of consolidation and simple problems on Consolidated Financial Statements with single subsidiary (excluding problems involving acquisition of Interest in Subsidiary at Different Dates; Different Reporting Dates; Disposal of a Subsidiary and Foreign Subsidiaries)
NOTE 1. If either new Accounting Standards (ASs), Announcements and Limited Revisions to ASs are issued or the earlier ones are withdrawn or new ASs, Announcements and Limited Revisions to AS are issued in place of existing ASs, Announcements and Limited Revisions to AS, the syllabus will accordingly include / exclude such new developments in the place of the existing ones with effect from the date to be notified.
2. The specific inclusions /exclusions, in any topic covered in the syllabus, will be effective every year by way of Study Guidelines. The list of applicable Guidance Notes in Accounting will also form part of the Study Guidelines.
Contents-
1. Nature, Objective and Scope of Audit
Auditing Concepts: Nature, objective and scope of Audit; Relationship of auditing with other disciplines;
Standard Setting Process: Overview, Standard-setting process, Role of International Auditing and Assurance Standards Board (IAASB) & Auditing and Assurance Standards Board (AASB); Standards on Auditing, Guidance Note(s) issued by the ICAI;
Engagement Standards: Qualities of Auditor, Elements of System of Quality Control (SQC 1 Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements); Ethical requirements relating to an audit of financial statements; Inherent Limitations of an audit (SA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Standards on Auditing); Preconditions for an audit; Audit Engagement; Agreement on Audit Engagement Terms; Terms of Engagement in Recurring Audits (SA 210 Agreeing the Terms of Audit Engagements); Leadership Responsibilities for Quality on Audits; Concept of Auditor's Independence; Threats to Independence; Acceptance and Continuance of Client Relationships and Audit Engagements (SA 220 Quality Control for an Audit of Financial Statements).
2. Audit Strategy, Audit Planning and Audit Programme
Audit Strategy; Audit planning (SA 300); Plaining an Audit of Financial Statement; Audit programme; Development of Audit Plan and Programme, Control of quality of audit work - Delegation and supervision of audit work; Materiality and Audit Plan; Revision of Materiality; Documenting the Materiality; Performance Materiality (SA 320 Materiality in Planning and Performing an Audit).
3. Audit Documentation and Audit Evidence
Concept of Audit Documentation; Nature & Purpose of Audit Documentation; Form, Content & Extent of Audit Documentation; Completion Memorandum; Ownership and custody of Audit Documentation (SA 230 Audit Documentation); Audit procedures for obtaining audit evidence; Sources of evidence; Relevance and Reliability of audit evidence; Sufficient appropriate audit evidence, Evaluation of Audit Evidence (SA 500 Audit Evidence); Written Representations as Audit Evidence; Objective of Auditor regarding Written Representation; Management from whom Written Representations may be requested; Written Representations about Management's Responsibilities (SA 580 Written Representations); Obtaining evidence of existence of inventory; Audit procedure to identify litigation & claims (SA 501 Audit Evidence - Specific Considerations for Selected Items); External confirmation procedures; Management's refusal to allow the auditor to send a confirmation request; Negative Confirmations (SA 505 External Confirmations); Audit evidence about opening balances; Accounting policies relating to opening balances; Reporting with regard to opening balances (SA 510 Initial Audit Engagements- Opening Balances); Meaning of Related Party; Nature of Related Party Relationships & Transactions; Understanding the Entity's Related Party Relationships & Transactions (SA 550 Related Parties); Meaning of Subsequent Events; Auditor's obligations in different situations of subsequent events (SA 560 Subsequent Events); Responsibilities of the Auditor with regard to Going Concern Assumption; Objectives of the Auditor regarding Going Concern; Events or Conditions that may cast doubt about Going Concern Assumption; Audit Procedures when events or conditions are identified (SA 570 Going Concern).
4. Risk Assessment and Internal Control: Audit Risk, Identifying and Assessing the Risk of Material Misstatement; Risk Assessment procedures; Understanding the entity and its environment; Internal control; Documenting the Risks; Evaluation of internal control system; Testing of Internal control; Internal Control and IT Environment (SA 315 Identifying and Assessing the Risks of Material Misstatement Through Understanding the Entity and Its Environment); Materiality and audit risk (SA 320 Materiality in Planning and Performing an Audit); Internal audit, Basics of Standards on Internal Audit (SIAs) issued by the ICAI; Basics of Internal Financial Control and reporting requirements; Distinction between Internal Financial Control and Internal Control over Financial Reporting.
5. Fraud and Responsibilities of the Auditor in this Regard: Responsibility for the Prevention and Detection of Fraud; Fraud Risk Factors; Risks of Material Misstatement Due to Fraud; Communication of Fraud (SA 240 The Auditor's responsibilities Relating to Fraud in an Audit of Financial Statements); Provisions of the Companies Act 2013 relating to fraud and rules thereunder including reporting requirements under CARO.
6. Audit in an Automated Environment: Key features, Impact of IT related Risks, Impact on Controls, Internal Financial Controls as per Regulatory requirements, Types of Controls, Audit approach, Understanding and documenting Automated environment, Testing methods, data analytics for audit, assessing and reporting audit findings.
7. Audit Sampling: Meaning of Audit Sampling; Designing an audit sample; Types of sampling; Sample Size and selection of items for testing; Sample selection method (SA 530 Audit Sampling).
8. Analytical Procedures: Meaning, nature, purpose and timing of analytical procedures; Substantive analytical procedures, Designing and performing analytical procedures prior to Audit; investigating the results of analytical procedures (SA 520 Analytical Procedures).
9. Audit of Items of Financial Statements: Audit of sale of Products and Services; Audit of Interest Income, Rental Income, Dividend Income, Net gain/loss on sale of Investments etc.
Audit of Purchases, Employee benefits expenses, Depreciation, Interest expense, Expenditure on Power & Fuel, Rent,
Repair to building, Repair to Machinery, Insurance, Taxes, Travelling Expenses, Miscellaneous Expenses etc.
Audit of Share Capital, Reserve & Surplus, Long Term Borrowings, Trade Payables, Provisions, Short Term Borrowings & Other Current Liabilities. Audit of Land, Buildings, Plant & Equipment, Furniture & Fixtures, Vehicles, Office Equipment, Goodwill, Brand/Trademarks, Computer Software etc. Audit of Loan & Advances, Trade Receivable, Inventories, Cash & Cash Equivalent, Other Current Assets. Audit of Contingent Liabilities.
10. The Company Audit: Eligibility, Qualifications and Disqualifications of Auditors; Appointment of auditors; Removal of auditors; Remuneration of Auditors; Powers and duties of auditors; Branch audit; Joint audit; Reporting requirements under the Companies Act, 2013 including CARO; Other Important Provisions under the Companies Act, 2013 relating to Audit and Auditors and Rules made thereunder.
11. Audit Report: Forming an opinion on the Financial Statements; Auditor's Report- basic elements (SA 700 Forming an Opinion and Reporting on Financial Statements); Types of Modified Opinion; Circumstances When a Modification to the Auditor's Opinion is Required Qualified, Adverse, Disclaimer of Opinion (SA 705 Modification to the Opinion in the Independent Auditor's Report); SA 706 Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor's Report; Nature of Comparative Information; Corresponding Figure; Comparative Financial Statements (SA 710 Comparative Information - Corresponding Figures and Comparative Financial Statements).
12. Audit of Banks: Understanding of accounting system in Banks, Audit Approach, Audit of Revenue items, Special Consideration in Bank Audit with emphasis on Advances and NPAs.
13. Audit of Different Types of Entities: Appointment of Auditor, Audit Procedure and Audit Report in respect of different Category of Entities Government; Local bodies and Not-for-profit organizations; Partnership Firms, Audit of different type of undertakings, i.e., Educational institutions, Hotels, Clubs, Hospitals Basics of Limited Liability Partnerships (LLPs) audit and Co-operative Societies Audit.
NOTE 1. The specific inclusions/exclusions in any topic covered in the syllabus, will be effected every year by way of Study Guidelines.
2. The provisions of the Companies Act, 1956 which are still in force would form part of the syllabus till the time their corresponding or new provisions of the Companies Act, 2013 are enforced.
3. If new legislations/Standards on Auditing/Guidance Notes/Statements are enacted in place of the existing legislations, the syllabus would include the corresponding provisions of such new legislations with effect from a date notified by the Institute. The changes in this regard would also form part of Study Guidelines.
Section A: Enterprise Information Systems (50 Marks)
Contents-
1. Automated Business Processes
i. Introduction to Enterprise Business Processes, Benefits, Risks and Controls;
ii. Diagrammatic representation of business processes using Flowcharts;
iii. Risks and controls for specific business processes: Procure to pay (P2P), Order to cash, Inventory Cycle, Hire to Retire, Supply Chain Management, Fixed Assets etc.
iv. Applicable regulatory and compliance requirements including computer related offences, privacy, cybercrime, Sensitive Personal Data Information of Information Technology Act, 2000
2. Financial and Accounting Systems
i. Integrated (ERP) and non-integrated systems with related risks and controls;
ii. Business process modules and their integration with Financial and Accounting systems.
iii. Reporting Systems and MIS, Data Analytics and Business Intelligence
iv. Business Reporting and fundamentals of XBRL (eXtensible Business Reporting Language).
v. Applicable regulatory and compliance requirements
3. Information Systems and its Components
i. Components of Automated Information Systems: Application Systems, Database, Network and Operating System with related risks and controls.
ii. Mapping of Organization structure with Segregation of Duties in Information Systems.
4. E-commerce, M-commerce and Emerging Technologies
i. Components and Architecture of E-Commerce and M-Commerce with related risks and controls
ii. Business process flow with its related risks and controls
iii. Applicable regulatory and compliance requirements
iv. Emerging technologies with its related risks and controls
5. Core Banking Systems
i. Components and Architecture of CBS and related risks and controls
ii. Core modules of banking and Business process flow and its related risks and controls
iii. Reporting Systems and MIS, Data Analytics and Business Intelligence
iv. Applicable regulatory and compliance requirements.
Section B: Strategic Management (50 Marks)
Contents-
1. Introduction to Strategic Management
2. Dynamics of Competitive Strategy
3. Strategic Management Process
4. Corporate Level Strategies
5. Business Level Strategies
6. Functional Level Strategies
7. Organisation and Strategic Leadership
8. Strategy Implementation and Control
Section A - Financial Management (60 Marks)
Contents-
1. Financial Management and Financial Analysis
i. Introduction to Financial Management Function
a. Objective and scope of financial management
b. Role and purpose
c. Financial management environment
d. Functions of finance executives in an organization
e. Financial distress and insolvency.
ii. Financial Analysis through Ratios
a. Users of the financial analysis
b. Sources of financial data for analysis
c. Calculation and Interpretation of ratios:
d. Limitations of ratio analysis
2. Financing Decisions
i. Sources of Finance
a. Different Sources of Finance, Characteristics of different types of long-term debt and equity finance, Method of raising long term finance
b. Different Sources of short-term Finance
c. Internal fund as a source of finance
d. International sources of finance
e. Other sources of finance- Sale and lease back, Convertible debt, Venture capital, Grants etc.
ii. Lease Financing
a. Concept and Classification
b. Significance and Limitations of Lease Financing
c. Financial Evaluation of Leasing Decision
iii. Cost of Capital
a. Significance of cost of capital
b. Factors of cost of capital
c. Measurement of costs of individual components of capital
d. Weighted average cost of capital (WACC)
e. Marginal cost of capital
f. Effective Interest rate
iv. Capital Structure Decisions
a. Significance of capital structure
b. Determinants of capital structure
c. Capital structure planning and designing
d. Designing of optimum capital structure
e. Theories of Capital Structure and value of the firm- relevancy and Irrelevancy of capital structure.
f. EBIT- EPS Analysis, Breakeven- EBIT Analysis.
g. Under/ Over Capitalisation.
v. Leverages
a. Types of Leverages- Operating, Financial and Combined
b. Analysis of leverages
3. Capital Investment and Dividend Decisions
i. Capital Investment Decisions
a. Objective of capital investment decisions
b. Methods of Investment appraisal...
ii. Adjustment of Risk and Uncertainty in Capital Budgeting Decision
a. Probability Analysis
b. Certainty Equivalent Method
c. Risk Adjusted Discount Rate
d. Monte Carlo Simulation
e. Decision Tree Analysis
f. Scenario Analysis
g. Sensitivity Analysis
iii. Dividend Decisions
a. Basics of Dividends
b. Forms of dividend
c. Determinants of dividend
d. Relevancy and Irrelevancy of Dividend Policies- Traditional Approach, Walter's model, Gordon's model, Modigliani and Miller (MM) Hypothesis.
4. Management of Working Capital
i. Management of Working Capital
a. The management of working capital- Liquidity and Profitability
b. The Working capital financing decisions-Primary and Secondary Sources of Liquidity
c. The working Capital Cycle (operating Cycle), Effectiveness of Working Capital based on its operating and cash conversion cycles
d. Assessment of working capital requirement
e. Management of Accounts Receivables (Debtors)
f. Factoring and Forfeiting
g. Management of Accounts Payables (Creditors)
h. Management of Inventory
i. Management of Cash, Treasury management
j. Banking norms of working capital finance.
Section B: Economics for Finance (40 Marks)
Contents-
1. Determination of National Income
i. Macro-Economic Aggregates and Measurement of National Income
ii. The Keynesian Theory of Determination of National Income
2. Public Finance
i. Fiscal functions: An Overview
ii. Market Failure
iii. Government Interventions to Correct Market Failure
iv. Fiscal Policy
3. The Money Market
i. The Concept of Money Demand: Important Theories of Demand for Money
ii. The Concept of Money Supply
iii. Monetary Policy
4. International Trade
i. Theories of International Trade
ii. Trade Policy - The Instruments of Trade Policy
iii. Trade Negotiations
iv. Exchange Rates and its economic effects
v. International Capital Movements: Foreign Direct Investment.
Cart
