Cracking the CA Final code: (Group 1 - Paper 2)

Strategic Financial Management:-

i. Continuing with my first article “Cracking the CA Final code” – Group 1 Paper 1.

ii. Coming to my favourite subject, not to mention also very scoring.

iii. I believe one can easily do Self-Study for this subject provided one has started well in advance.

iv. Finish chapters in the following Priority:-

A. Dividend Decisions:

i. This is surely a confidence booster to start with.

ii. People like Gordon, Miller etc. might irritate you a bit but they could fetch you a good 8 marks (and even more if you are lucky) so make peace with them. Qns from SM/PM are more than sufficient.

iii. Make sure you understand the concept/assumptions behind each theory/formulae.

B. Mutual Funds:

i. Definitely it’s the next best thing to do.

ii. Again SM/PM should do well. 

iii. An 8 marker again a possibility.

C. Mergers:

i. This is the easiest of the big chapters.

ii. Should not pose much of a problem.

iii. Can expect a minimum 10 marks from this chapter. (In Nov -12 around 40 marks had been asked)

D. Derivatives, Forex, Security analysis and Portfolio:

i. Start with Security analysis first.

ii. The other 3 chapters should be done in tandem as they have certain concepts which are inter-related.

iii. Portfolio is more of Formula based which may not allow you much application of the brain. However ICAI will never disappoint you on that part with the other 2 chapters.

iv. Considered the crux of the subject – Forex and Derivatives are the most important chapters (can expect 25-30 marks). These are very interesting topics too and if time permits make sure you go a bit deep to understand them (Refer other non-academic materials/YouTube etc).

v. Refer this video for Basic understanding on Forex - https://www.youtube.com/watch?v=jLPk-EInY3s

Theory:

Generally ignored by many, I would strongly recommend doing this (Sure 16 marks) - Reason being one can never predict the difficulty level with which ICAI sets the Qn paper. So on a safer side (with the assumption that a student wants to get out of the vicious exam circle of May-Nov-May ASAP) it’s better to go through atleast the summary of each chapter given in the last few pages.

Chapters Imp for Theory:

Chapters – 1,5,8,9,10,11,13

Capital budgeting (CB) and Leasing:

i. The weightage of this topic has seen a drastic fall in the recent years.

ii. Nevertheless an 8-10 marker is expected.

iii. Give more importance to Risk analysis in CB.

iv. Leasing chapter tests your speed and accuracy more than knowledge.

v. So practice well.

vi. Also maintain a formulae book for quick revision.

All the very Best!!!

For any help, I am always there.