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CA Final Course - New SchemePaper-2
Strategic Financial Management2019 VS 2020 UPDATIONS/CHANGES
CHAPTERSRelevant For NOVEMBER, 2019 Examination CHAPTERSRelevant For MAY, 2020 Examination CHAPTER 1 : FINANCIAL POLICY AND CORPORATE STRATEGY CHAPTER 1 : FINANCIAL POLICY AND CORPORATE STRATEGY CHAPTER 2 : INDIAN FINANCIAL SYSTEM * CHAPTER 2 : RISK MANAGEMENT CHAPTER 3 : RISK MANAGEMENT CHAPTER 3 : SECURITY ANALYSIS CHAPTER 4 : SECURITY ANALYSIS CHAPTER 4 : SECURITY VALUATION CHAPTER 5 : SECURITY VALUATION CHAPTER 5 : PORTFOLIO MANAGEMENT CHAPTER 6 : PORTFOLIO MANAGEMENT CHAPTER 6 : SECURITIZATION CHAPTER 7 : SECURITIZATION CHAPTER 7 : MUTUAL FUNDS CHAPTER 8 : MUTUAL FUNDS CHAPTER 8 : DERIVATIVES ANALYSIS AND VALUATION CHAPTER 9 : DERIVATIVES ANALYSIS AND VALUATION CHAPTER 9 : FOREIGN EXCHANGE EXPOSURE AND RISK MANAGEMENT CHAPTER 10 : FOREIGN EXCHANGE EXPOSURE AND RISK MANAGEMENT CHAPTER 10 : INTERNATIONAL FINANCIAL MANAGEMENT CHAPTER 11 : INTERNATIONAL FINANCIAL MANAGEMENT CHAPTER 11 : INTEREST RATE RISK MANAGEMENT CHAPTER 12 : INTEREST RATE RISK MANAGEMENT CHAPTER 12 : CORPORATE VALUATION CHAPTER 13 : CORPORATE VALUATION CHAPTER 13 : MERGERS, ACQUISITIONS & CORPORATE RESTRUCTURING CHAPTER 14 : MERGERS, ACQUISITIONS & CORPORATE RESTRUCTURING CHAPTER 14 : STARTUP FINANCE CHAPTER 15 : INTERNATIONAL FINANCIAL CENTRE (IFC)* CHAPTER 16 : STARTUP FINANCE CHAPTER 17 : SMALL AND MEDIUM ENTERPRISES*
* Out of syllabus for May 2020 examination
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIALCHAPTER 1
FINANCIAL POLICY AND CORPORATE STRATEGYCHAPTER 1
FINANCIAL POLICY AND CORPORATE STRATEGYPage No. 1.3 Page No. 1.3
1.1 - Functions of Strategic Financial Management 1.1 - Functions of Strategic Financial ManagementSince capital is the limiting factor, the strategic problem forfinancial management is how limited funds are allocated betweenalternative uses. This dilemma of corporate management is resolvedby the pioneering work of Jenson and Meckling (1976)2, which ispopularly known as ‘agency theory’ which you have already studiedat your Intermediate (IPC) level. According to this theory, strategicfinancial management is the function of four major componentsbased on the mathematical concept of expected NPV (net presentvalue) maximization,- Financing decisions; Investment decisions;Dividend decisions; and Portfolio decisions.
Since capital is the limiting factor, the strategic problem forfinancial management is how limited funds are allocated betweenalternative uses.
Red marked Removed from May 2020 Study Material
Sanjay Saraf Educational Institute Pvt. Ltd.
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIALCHAPTER 3
RISK MANAGEMENT
CHAPTER 2
RISK MANAGEMENT
Page No. 3.3 Page No. 2.3 Point 1.4.5 Liquidity risk Added
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIALCHAPTER 3
RISK MANAGEMENT
CHAPTER 2
RISK MANAGEMENT
Page No. 3.3 Page No. 2.3 Point 1.4.5 Liquidity risk Added
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIALCHAPTER 3
RISK MANAGEMENT
CHAPTER 2
RISK MANAGEMENT
Page No. 3.3 Page No. 2.3 Point 1.4.5 Liquidity risk Added
Sanjay Saraf Educational Institute Pvt. Ltd.
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIALCHAPTER 3
RISK MANAGEMENTCHAPTER 2
RISK MANAGEMENTPage No. 3.6 Page No. 2.6 Change in Sequence
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIALCHAPTER 3
RISK MANAGEMENTCHAPTER 2
RISK MANAGEMENTPage No. 3.6 Page No. 2.6 Change in Sequence
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIALCHAPTER 3
RISK MANAGEMENTCHAPTER 2
RISK MANAGEMENTPage No. 3.6 Page No. 2.6 Change in Sequence
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIALCHAPTER 4
SECURITY ANALYSISCHAPTER 3
SECURITY ANALYSISPage No. 4.26 Page No. 3.26 Updated
Page No. 3.27 Added
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIALCHAPTER 4
SECURITY ANALYSISCHAPTER 3
SECURITY ANALYSISPage No. 4.26 Page No. 3.26 Updated
Page No. 3.27 Added
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIALCHAPTER 4
SECURITY ANALYSISCHAPTER 3
SECURITY ANALYSISPage No. 4.26 Page No. 3.26 Updated
Page No. 3.27 Added
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIAL
CHAPTER 4
SECURITY ANALYSIS
CHAPTER 3
SECURITY ANALYSIS
Page No. 4.32 Page No. 3.32 UpdatedPractical Question - 1
Calculate Exponential Moving Average (EMA) of Sensex during theabove period. The 30 days simple moving average of Sensex can beassumed as 15,000. The value of exponent for 30 days EMA is 0.062.
Practical Question - 1
Calculate Exponential Moving Average (EMA) of Sensex duringthe above period. The previous day exponential moving average ofSensex can be assumed as 15,000. The value of exponent for 31 daysEMA is 0.062.
Sanjay Saraf Educational Institute Pvt. Ltd.
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIAL
CHAPTER 5
SECURITY VALUATION
CHAPTER 4
SECURITY VALUATION
Page No.5.11 Page No. 4.11 Updated/Corrected6.3.1 Calculation of Free Cash Flow to Firm (FCFF) 6.3.1 Calculation of Free Cash Flow to Firm (FCFF):
Page No. 5.14 Page No. 4.14 Updated
Page No. 5.17Removed form May 2020
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIAL
CHAPTER 5
SECURITY VALUATION
CHAPTER 4
SECURITY VALUATION
Page No.5.11 Page No. 4.11 Updated/Corrected6.3.1 Calculation of Free Cash Flow to Firm (FCFF) 6.3.1 Calculation of Free Cash Flow to Firm (FCFF):
Page No. 5.14 Page No. 4.14 Updated
Page No. 5.17Removed form May 2020
7
ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIAL
CHAPTER 5
SECURITY VALUATION
CHAPTER 4
SECURITY VALUATION
Page No.5.11 Page No. 4.11 Updated/Corrected6.3.1 Calculation of Free Cash Flow to Firm (FCFF) 6.3.1 Calculation of Free Cash Flow to Firm (FCFF):
Page No. 5.14 Page No. 4.14 Updated
Page No. 5.17Removed form May 2020
Sanjay Saraf Educational Institute Pvt. Ltd.
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIAL
CHAPTER 5
SECURITY VALUATION
CHAPTER 4
SECURITY VALUATION
Page No. 5.28 Page No. 4.28 UpdatedSolution to Practical Question 2 Solution to Practical Question 2
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIAL
CHAPTER 5
SECURITY VALUATION
CHAPTER 4
SECURITY VALUATION
Page No. 5.28 Page No. 4.28 UpdatedSolution to Practical Question 2 Solution to Practical Question 2
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIAL
CHAPTER 5
SECURITY VALUATION
CHAPTER 4
SECURITY VALUATION
Page No. 5.28 Page No. 4.28 UpdatedSolution to Practical Question 2 Solution to Practical Question 2
Sanjay Saraf Educational Institute Pvt. Ltd.
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIAL
CHAPTER 5
SECURITY VALUATION
CHAPTER 4
SECURITY VALUATION
Page No. 5.33 Page No. 4.32 UpdatedSolution to Practical Question 5a Solution to Practical Question 5a
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIAL
CHAPTER 5
SECURITY VALUATION
CHAPTER 4
SECURITY VALUATION
Page No. 5.33 Page No. 4.32 UpdatedSolution to Practical Question 5a Solution to Practical Question 5a
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIAL
CHAPTER 5
SECURITY VALUATION
CHAPTER 4
SECURITY VALUATION
Page No. 5.33 Page No. 4.32 UpdatedSolution to Practical Question 5a Solution to Practical Question 5a
Sanjay Saraf Educational Institute Pvt. Ltd.
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIAL
CHAPTER 6
PORTFOLIO MANAGEMENT
CHAPTER 5
PORTFOLIO MANAGEMENT
Page No. 6.38 Page No. 5.37 Corrected
Last paragraph of 7.Capital Asset Pricing Model (CAPM) Last paragraph of 7.Capital Asset Pricing Model (CAPM)
Page No. 6.39 Page No. 5.37 Corrected
Solution to illustration 1 Solution to illustration 1
Page No. 6.48 Page No. 5.46 Corrected
αi = Value of alpha for security i
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIAL
CHAPTER 6
PORTFOLIO MANAGEMENT
CHAPTER 5
PORTFOLIO MANAGEMENT
Page No. 6.38 Page No. 5.37 Corrected
Last paragraph of 7.Capital Asset Pricing Model (CAPM) Last paragraph of 7.Capital Asset Pricing Model (CAPM)
Page No. 6.39 Page No. 5.37 Corrected
Solution to illustration 1 Solution to illustration 1
Page No. 6.48 Page No. 5.46 Corrected
αi = Value of alpha for security i
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIAL
CHAPTER 6
PORTFOLIO MANAGEMENT
CHAPTER 5
PORTFOLIO MANAGEMENT
Page No. 6.38 Page No. 5.37 Corrected
Last paragraph of 7.Capital Asset Pricing Model (CAPM) Last paragraph of 7.Capital Asset Pricing Model (CAPM)
Page No. 6.39 Page No. 5.37 Corrected
Solution to illustration 1 Solution to illustration 1
Page No. 6.48 Page No. 5.46 Corrected
αi = Value of alpha for security i
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIAL
CHAPTER 7
SECURITIZATION
CHAPTER 6
SECURITIZATION
THERE IS NO CHANGES OR UPDATIONS
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIAL
CHAPTER 8
MUTUAL FUNDS
CHAPTER 7
MUTUAL FUNDS
Page No. 7.12 Addition
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIAL
CHAPTER 8
MUTUAL FUNDS
CHAPTER 7
MUTUAL FUNDS
Page No. 7.12 Addition
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIAL
CHAPTER 8
MUTUAL FUNDS
CHAPTER 7
MUTUAL FUNDS
Page No. 7.12 Addition
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIAL
CHAPTER 8
MUTUAL FUNDS
CHAPTER 7
MUTUAL FUNDS
Page No. 7.16 Addition
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIAL
CHAPTER 8
MUTUAL FUNDS
CHAPTER 7
MUTUAL FUNDS
Page No. 7.16 Addition
13
ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIAL
CHAPTER 8
MUTUAL FUNDS
CHAPTER 7
MUTUAL FUNDS
Page No. 7.16 Addition
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIAL
CHAPTER 8
MUTUAL FUNDS
CHAPTER 7
MUTUAL FUNDS
Page No. 7.16 Addition
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIAL
CHAPTER 8
MUTUAL FUNDS
CHAPTER 7
MUTUAL FUNDS
Page No. 7.16 Addition
14
ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIAL
CHAPTER 8
MUTUAL FUNDS
CHAPTER 7
MUTUAL FUNDS
Page No. 7.16 Addition
Sanjay Saraf Educational Institute Pvt. Ltd.
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIAL
CHAPTER 9
DERIVATIVES ANALYSIS AND VALUATION
CHAPTER 8
DERIVATIVES ANALYSIS AND VALUATION
Page No. 9.28 Page No. 8.27 Corrected
Page No. 9.45 Page No. 8.44 Updated
Solution to Practical Question 5 Solution to Practical Question 5
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIAL
CHAPTER 9
DERIVATIVES ANALYSIS AND VALUATION
CHAPTER 8
DERIVATIVES ANALYSIS AND VALUATION
Page No. 9.28 Page No. 8.27 Corrected
Page No. 9.45 Page No. 8.44 Updated
Solution to Practical Question 5 Solution to Practical Question 5
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIAL
CHAPTER 9
DERIVATIVES ANALYSIS AND VALUATION
CHAPTER 8
DERIVATIVES ANALYSIS AND VALUATION
Page No. 9.28 Page No. 8.27 Corrected
Page No. 9.45 Page No. 8.44 Updated
Solution to Practical Question 5 Solution to Practical Question 5
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIAL
CHAPTER 10
FOREIGN EXCHANGE EXPOSUREAND RISK MANAGEMENT
CHAPTER 9
FOREIGN EXCHANGE EXPOSUREAND RISK MANAGEMENT
THERE IS NO CHANGES OR UPDATIONS
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIAL
CHAPTER 11
INTERNATIONAL FINANCIAL MANAGEMENT
CHAPTER 10
INTERNATIONAL FINANCIAL MANAGEMENT
Page No. 11.19 Page No. 10.18 Corrected
In solution to illustration 4Read Cost of GDR to Odessa Ltd.
as Cost of GDR to X Ltd.
17
ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIAL
CHAPTER 11
INTERNATIONAL FINANCIAL MANAGEMENT
CHAPTER 10
INTERNATIONAL FINANCIAL MANAGEMENT
Page No. 11.19 Page No. 10.18 Corrected
In solution to illustration 4Read Cost of GDR to Odessa Ltd.
as Cost of GDR to X Ltd.
17
ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIAL
CHAPTER 11
INTERNATIONAL FINANCIAL MANAGEMENT
CHAPTER 10
INTERNATIONAL FINANCIAL MANAGEMENT
Page No. 11.19 Page No. 10.18 Corrected
In solution to illustration 4Read Cost of GDR to Odessa Ltd.
as Cost of GDR to X Ltd.
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIAL
CHAPTER 12
INTEREST RATE RISK MANAGEMENT
CHAPTER 11
INTEREST RATE RISK MANAGEMENT
THERE IS NO CHANGES OR UPDATIONS
Sanjay Saraf Educational Institute Pvt. Ltd.
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIAL
CHAPTER 13
CORPORATE VALUATION
CHAPTER 12
CORPORATE VALUATION
Page No. 13.14 Page No. 12.14 Corrected
Solution to illustration 1 Solution to illustration 1
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIAL
CHAPTER 13
CORPORATE VALUATION
CHAPTER 12
CORPORATE VALUATION
Page No. 13.14 Page No. 12.14 Corrected
Solution to illustration 1 Solution to illustration 1
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIAL
CHAPTER 13
CORPORATE VALUATION
CHAPTER 12
CORPORATE VALUATION
Page No. 13.14 Page No. 12.14 Corrected
Solution to illustration 1 Solution to illustration 1
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIAL
CHAPTER 13
CORPORATE VALUATION
CHAPTER 12
CORPORATE VALUATION
Page No. 13.20 Page No. 12.20 Updated
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIAL
CHAPTER 13
CORPORATE VALUATION
CHAPTER 12
CORPORATE VALUATION
Page No. 13.20 Page No. 12.20 Updated
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIAL
CHAPTER 13
CORPORATE VALUATION
CHAPTER 12
CORPORATE VALUATION
Page No. 13.20 Page No. 12.20 Updated
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIAL
CHAPTER 14
MERGERS, ACQUISITIONS & CORPORATERESTRUCTURING
CHAPTER 13
MERGERS, ACQUISITIONS & CORPORATERESTRUCTURING
THERE IS NO CHANGES OR UPDATIONS
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ICAI NOVEMBER 2019 STUDY MATERIAL ICAI MAY 2020 STUDY MATERIAL
CHAPTER 16
STARTUP FINANCE
CHAPTER 14
STARTUP FINANCE
THERE IS NO CHANGES OR UPDATIONS
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