Detailed analysis of sfm-nov-13 paper by ca nagendra

Final 6336 views 17 replies

CA Nagendra

1788 Points Joined December 2009

Analysis of CA Final SFM Paper (Nov-2013)

- There must be printing error in two questions. Q-1(c) and Q-6(a) otherwise question does not make any sense. But it is very difficult to students to find it. In my opinion if any one attempted these questions, they will definitely get mark.

- ICAI asked same question in different way. After June-2009, Institute first time tested conceptual knowledge instead of repetitive past exam and RTP questions. Even most of the questions were from past examination question and RTP, institute made it different by inserting some conceptual information.

Q No.	Marks	Chapter	Topic	Level of question	Our module question number
1(a)	5	Bond mixed with OTC	Bond Valuation with forward Interest rate.	Conceptual	Not covered
1(b)	5	Derivative	Changing beta of existing portfolio with the help of Index future.	Easy	Q. No. - 21A [RTP-June-2009-MAFA]
1(c)	5	FOREX	Cover rate and Profit and loss	Easy but printing error (My opinion). Second rate must be “Mumbai-New York” Instead of “London-New York”	Q. No. - 4C [Nov-2005, May-2013, RTP-June-09]
1(d)	5	Mutual Fund	Calculation of NAV	Time consuming and Difficult but it is past exam question.	Q. No. - 3B [Nov-2006]
2(a)	8	Portfolio	Based on CAPM	Easy. Past exam question	Q. No. – 8G [May-2003]
2(b)	8	Forex mixed with Derivative	Forward cover and Currency option	More time consuming. Similar to past exam question but inserted irrelevant quotes of call and put option premium to make question lengthy.	Q. No. – 22A [May-2010]
3(a)	10	Leasing decision	Bank financing vs lease financing with installment payment at beginning of year	Easy	Q-12 & 13
3(b)	6	Factoring (Miscellaneous)	Factoring agreement	Little bit tough	Q- 4E & Q-4E [May-2002 & Nov-2008]
4(a)	8	Share valuation	P/E ratio base Share Valuation with Bonus issue.	Conceptual	Not exact but similar concept based question solved in class
4(b)	8	Capital budgeting	Sensitivity analysis with Marginal costing concept of AMA	Conceptual	Similar to 7th series question
5(a)	10	Merger and Acquisition	Purchase consideration and Valuation of target company	Conceptual but easy	Q No-15
5(b)	6	Derivative	Hedging with the help of Index future	Conceptual. Insertion of Sale of security in portfolio makes it little bit difficult due to negative weight and negative beta.	Q No – 20A
6(a)	8	Dividend decision and share valuation	Dividend growth approach	Easy. But printing error in question (My opinion)	Q. No. – 5N [May-2005 & May-2011]
6(b)	8	Forex	Investment in different countries to maximize profit	Conceptual	Q. No. – 8C
7(b)	4	Forex	Nostro account and Loro account	Easy	Q. No. 12B & 12C
7	12	Theory

Total coverage in our module 99 Marks.

Replies (17)

Pankaj Agrawal

Chartered Accountant

49 Points Joined February 2011

sir aapka module kaha ha.......

CA.Vikash

192 Points Joined January 2011

Good advertisement................ Sir jee exam me question paper attempt kar ke to dikhaw.AC ME sit ho kr comment karna to bhoot assan he.

CA Nagendra

1788 Points Joined December 2009

Question attempt kiya hai tabhi to aaj 300 students ko one batch me padhate hai. Hamare class ke students sare question solve karke baithe hai. Be positive. Failure insaan ke tarah comment mat karo. Teacher ko respect karna sikho. I only the person who shared all the important summarised notes of SFM on CA Clubindia and it was one of the popular notes here. so you can not say like this. Kehte hai kudhme daam no ho to dusre ke taraki si jalana bhi nahi honi chahiye.

Vikram M.

Unemployed

504 Points Joined December 2007

Thank you for this useful analysis. However, I was unable to locate the following in my 10-years(scanner): Q2b or May2010. Q3b or May2002/Nov2008. I also noticed that the topic of Money market did not contain a single sum on factoring. Is it possibly grouped under a different chapter in my scanner?

Parvat Singh

Trainee

33 Points Joined August 2011

Hello Vikas, sorro to say u, Nagendra sir SFM ke expert faculty hai. Sir ko respect nahi dene wale, life me kitni bhi pragati kar le wo adhuri hoti hai. Agar tum paper nahi kar paye ho to isme tumhari bad luck hai, but u have to respect all the faculties.

CA Nagendra

1788 Points Joined December 2009

@ Aditya..........

For Q-2b:

You can refer practice mannual Page 12.36 (January-2013 edition), Chapter-FOREX, Q-31.

For Q-3b:

You can refer practice mannual Page 8.8 (January-2013 edition), Chapter-Financial services in India chapter, Q-6

Vaibhav Jandey

Life iz Hard; I'm Harder

1178 Points Joined October 2010

Thank a lot for this post Sir,

On the basis of above post if you could share some tips to score higher in this exam with self study would be highly appreciated.

CA Nagendra

1788 Points Joined December 2009

@ Vaibhav ....... I am happy to share my views regarding self study.

Students can score high marks by self study also. But it needs proper time.

For this they have to remeber one thing " Matching your answer with suggested or RTP is not enough for getting high marks".

There are so many questions which answers are wrong in practice mannual and RTP. Even for same types of questions you will find different answers in different years' suggeted and RTP. It will creat confusion to you.

1. First you try to understand the concepts. For concepts you can refer class notes of any teacher who explains the concept in class notes. If you don't have, then get it copied from your friends.

Alternatively you can refer any reference book which explains concept cleary. Single book is not sufficient for all concept so you have to refer two or more books [eg. (i) SD bala, (ii) AN Shridar, (iii) JB Gupta (Taxman) etc.]. In all these books one thing is common, Answers of Past examination questions are copied like ICAI suggested. No own effort made to interpret the question. Interpretation of questions' language is one of the most tipical task for students doing self study.

2. Apply concept and solve question in your own way. Take Hints from Practice mannual. Do not refer reference book for practical qustion in some question they takes other assumtions than ICAI. There may be two or more assumptions for single question but we have to prefer those assumptions which takes by ICAI if it is logical.

3. Only practice mannual and RTP give you morethan 70 marks. if you solve those questions with conceptual clarity. No need to search more and more book to find new veriety of qustions.

In above analysis of November-2013 paper, i referred past examination year and past RPT year. So that you can notice it that mostly qustions are based on past examination and RTP. But students were not able to solve those questions (i can say like that because i read feedback on CACLUBINDIA), which has minor changes because of lack of conceptual calarity.

Regards;

CA Nagendra sah

Faculty of CA Final SFM Paper (in Delhi)

Krm91

Student

782 Points Joined September 2012

sir which is ur module is it avilable in market?

anonymous

unemployed

44 Points Joined June 2012

does icai gives marks for wrong questions as per past records.

@@@@P$$$$

CA final student

244 Points Joined November 2008

sir please upload solution

Vaibhav Jandey

Life iz Hard; I'm Harder

1178 Points Joined October 2010

Dear Sir,

Thank you for your reply, it is so considerate of you that you're replying to each and every student' query.

Sir as you said in the reference books many solutions are wrong or they have used assumptions other than used by ICAI, now I'm refering to S.D. Bala so could you please specify in which topics/problems they have done so, it's near impossible for me to identify those on my own as I'm studying SFM first time only. By the way I found S.D. Bala's books quite comprehensive, student friendly and a complete self study book.