websites of some of the major companies and study their vision and mission.
3. Third chapter is completely dedicated to strategic analysis. Student should understand situational analysis,
SWOT analysis, TOWS matrix along with methods of industry and competitive analysis. For practical
knowledge, students can conduct SWOT analysis of one or two leading organisations. Portfolio analysis is
also introduced in this chapter such as BCG matrix, Ansoff's matrix, ADL matrix, GE model.
4. Strategic planning is defined in this chapter. After understanding the concept of strategic planning, student
should go through corporate strategy formulation and implementation process with its five stages. Further,
student should learn the strategic alternatives given by Glueck and Jauch and Michael Porter's generic
strategies. This chapter also elucidates different strategies including diversification, divestment,
82 HOW TO FACE CA EXAMINATIONS ?
retrenchment and turnaround. These strategic alternatives can be clearly understood by reading the articles
published in various business magazines, Newspapers. In the last few years, Indian companies have done
some major global acquisitions.
5. This chapter explains various functional strategies, viz; marketing, production, logistics, research &
development, finance and human resources. Student should also focus on the areas covered by each
functional strategy.
6. Strategic management process does not end with the decision. In the sixth chapter, the issues and
interrelationships between strategy formulation and implementation are discussed. The chapter considers
organization structure for strategy implementation and covers functional structure, divisional structure,
strategic business units (SBUs), matrix structure and network structure. Later, strategic leadership is
discussed. The chapter reveals the leadership role in strategic implementation and also explains the two
basic approaches of leadership styles, viz., transformational leadership and transactional leadership style.
It also introduces the steps to initiate strategic change along with Kurt Lewin change process. Control
function of strategic management is also introduced.
7. In the last chapter, student should learn some of the recent and evolving concepts in strategic management
such as BPR, benchmarking, TQM and six sigma. Some of the contemporary strategic issues are also
introduced in this chapter.
A few more hints with regard to the approach for attempting the various types of examination questions in the
subject are offered as under:
(a) Comment type questions: Here you have to briefly explain the statement in your own words-what it is about.
Then examine the extent to which and the conditions under which the statement is valid. Outline the
limitations of the statement. Your answer has to be analytical and objective, without losing focus on the
statement.
(b) Short Notes: Your answer should be precise, brief, and to the point. Not much explanation is required in
answering short-note questions. You have to write the essential aspects in a nutshell. You can score well in
short notes by making a neat and concise presentation of the relevant subject matter.
(c) Essay type Questions: Give a brief introduction by way of defining the relevant concepts.
Reach the heart of the question and explain the major features or matters in a logical point-wise manner with
sub-headings for each point. Give a few examples in support of your reasoning.
Never deviate from the main thrust of the question. Cover as many points as are reasonably necessary to do
justice to the question.
Avoid going round and round by harping on one or two points repetitively in different ways.
Examination related hints:
IPCC 83
PCC is composed of two levels viz., Group-I and Group-II.
It comprises of Six Papers of 100 Marks each.
Professional
Competence Course (PCC)
Group-I
Group-II
Paper 1: Advanced Accounting*
Paper 2 : Auditing and Assurance
Paper 3: Law, Ethics and Communication
Paper 4 : Cost Accounting and Financial Management
Paper 5 : Taxation*
Paper 6 : Information Technology and Strategic Management
* Since syllabi of these papers are different at IPCC and PCC levels, subject specific guidance is
given separately for them in this portion. For other subjects, students may please refer to the
guidance given in IPCC portion.
Level of Knowledge: Working
Subject-specific Guidance
GROUP-I PAPER 1: ADVANCED ACCOUNTING
Accounting is one of the core subjects in the Chartered Accountancy Course. The paper concentrates on
conceptual understanding of the crucial aspects of accounting. The objective of the Accounting paper at PCC
level is to gain working knowledge of the principles and procedures of accounting and their application to
different practical situations.
The book is divided into 12 chapters, each addressing to a special aspect of accounting. Chapter 1 is based on
conceptual framework for preparation and presentation of financial statements while Chapter 2 deals with
Accounting Standards. Chapters 3 to 6 cover company accounts including preparation of financial statements of
banking, insurance and electricity companies. Chapter 7 lays emphasis on average due date, account current
and self balancing ledgers whereas Chapter 8 deals with preparation of financial statements of not-for-profit
organizations. Chapter 9 and 10 are devoted to accounting from incomplete records and accounting for special
transactions i.e. hire purchase and instalment sale, investment accounts, departmental and branch accounts
and insurance claims for loss of stock and loss of profit. Chapter 11 discusses accounting of partnership firms
and Chapter 12 explains basic concepts of accounting in computerized environment.
Your professional approach and qualitative effort is the key to pass CA Professional examinations without much
strain or stress. You need to plan right from the beginning by devoting your time and effort in meticulously
scanning the exact needs of this highly reputed professional course.
ou should study the
syllabus carefully and try to understand the relationships between various topics and the depth of the study
required in the different topics. Study materials including, revisionary test papers, suggested answers of past
In accounting examination, it is a test of your intelligence, ability or knowledge in the subject. So, it is very
important to make a good planning to prepare for accounting examinations. To begin with, y
examinations would help you to increase your study base. Monthly Students' Journal “The Chartered Accountant
Student” and “The Chartered Accountant Journal” should also be referred regularly to keep yourself abreast with
the latest amendments in the topics covered by the syllabus.
Ensure that you have understood the concepts and logic of each and every topic thoroughly. Keep questioning
yourself until you are absolutely clear on the topic. The conceptual knowledge underlying different topics gained
from thorough study should be translated in the form of comprehensive but concise notes which may be digested,
at the revision stage, within minimum time and minimum efforts without going through the whole book again.
These notes may also be accompanied by the proforma of relevant accounts.
Some essential and desirable attributes of good examination preparation and performance are outlined as
follows:
(a) Finger-tip knowledge of fundamentals of Accounting is a must. You are expected to be thorough with the
basics of accounting and their application to various practical situations.
(b) In-depth conceptual understanding of all the topics of the subject: Generally accepted accounting
principles, accounting formulas, relevant statutory provisions for preparation of accounts (Companies Act
1956, SEBI Guidelines, Banking Regulation Act 1949, Electricity Act 2003, IRDA Regulations 2002) form
part of the conceptual background, apart from specific concepts integral to various accounting topics.
(c) Thorough knowledge of Accounting Standards prescribed in the syllabus: These have a direct bearing on
preparation and presentation of financial statements of companies. You should be familiar with the
interpretation and application of the requirements of the accounting standards.
(d) Use of proper and prescribed formats for presentation of accounts: You should make it a practice to adopt
the formal formats and present accounts in a neat manner, together with workings notes.
(e) Preparation of concise notes for revision: Besides preparation of important points of the topic (which will
help you to recapitulate the whole concepts), a summary of tricky points and adjustments gathered from the
practice of various good illustrations may also be prepared which will help in grasping the intricate practical
aspects of accounting topics.
(f) Solving illustrations and problems in accounting on a regular basis under simulated examination conditions:
You are required to develop analytical reasoning, accuracy, speed and efficiency in presentation of the
solutions to practical problems in examinations by solving the illustrations under virtual examination
conditions. This can be done by undertaking mock test.
(g) Adequate revision of the topics: Also remember – out of sight, out of mind! Keep revising what you have read.
Ideally, the first revision should be within 24 hours of initial reading, the second within 1 week of initial
reading, third within 1 month of reading.
Undertake mock tests -Try doing practical problems in examination conditions. Try practical problems without
seeing solutions and then compare answers to evaluate your performance and take steps to remove
shortcomings.
86 HOW TO FACE CA EXAMINATIONS ?
GROUP-II PAPER 5: TAXATION
Taxation Laws constitute a very significant area of core competence for Chartered Accountants. It is vital that you
acquire a thorough grasp of both income-tax and service tax.
The level of knowledge required for the paper on Taxation is “working knowledge”. The objective of Part I: Incometax
of the paper is to gain knowledge of the provisions of income-tax laws relating to the topics mentioned in the
contents of the syllabus and their application in solving simple problems concerning assessees with the status of
individual and HUF covering the areas mentioned in the contents. The objective of Part II: Service Tax and VAT is to
gain knowledge of the provisions of service tax and VAT as mentioned in the contents of the syllabus. The division
of marks is 75 for Part I: Income-tax and 25 for Part II: Service tax & VAT.
For the purpose of acquiring “working knowledge”, what is required is generally the following:
(a) Knowledge of the basic provisions of the respective laws; and
(b) The ability to apply the provisions to solve computational problems.
A strong conceptual understanding of the legal provisions will smoothen the process of their application in
solving computational problems.
In order to achieve these goals, here are a few Do's and Don'ts.
(i) Do make a habit of regular study. This is imperative in a multi-disciplinary course like chartered accountancy
in which you have to balance the volume of the syllabus with the time available for studying. Further, in a
subject like taxation, which requires a thorough conceptual understanding of the various provisions, the
importance of regular study cannot be over-emphasized.
(ii) Do practice working out problems in a methodical manner. This will improve the ability to apply the law to
solve computational problems.
(iii) Do make a habit of remembering section numbers. Quoting of section numbers will enhance the value of the
answers.
(iv) Do try to consult the Bare Acts. This will facilitate the understanding of the logical sequence of the sections,
and will also clarify doubts that may arise.
(i) Don't do selective study. Make sure that you are thorough with the entire syllabus.
(ii) Don't try to consult too many books. Keep the study material for IPCC (including the practice manual) issued
by the Board of Studies as a base and consult any one of the standard books for solving practical problems.
For understanding the latest amendments, read the Supplementary Study Paper.
With a view to helping you in your endeavour, the Board of Studies brings out various publications from time to
time, as given below. You are advised to make full use of them.
Guidelines to students of PCC Course
Do's
Don'ts
PCC 87
(i) Study material for IPCC (including Practice Manual), updated with the provisions of the relevant Finance Act
would be relevant for PCC students also, however, with the exception of the following chapters in Part II:
Service tax and VAT –
Unit 2 of Chapter 2 on Taxable Services;
Chapter 5 on Input Tax Credit and Composition Scheme for Small Dealers; and
Chapter 6 on VAT Procedures.
(ii) Supplementary Study Paper - An analysis of recent question papers has revealed that considerable stress is
laid on recent amendments and developments. You are advised to update yourselves with the help of
Supplementary Study Paper which is brought out every year. In this publication, the amendments by the
latest Finance Act in both income-tax and service tax are explained.
(iii) The monthly students' journal “The Chartered Accountant Student” which contains regular academic
updates.
(iv) Revision Test Paper - You are advised to attempt answering the Revision Test Paper after you have studied the
subject thoroughly.
Finally, there are some words of advice regarding writing the papers in the examination hall.
(i) Answer the questions with due emphasis on the provisions of law. Support your answers/conclusions with
proper reasoning. Answers should be based on relevant legal provisions rather than a mere common sense
and/or guess work.
(ii) Try to quote relevant section numbers, wherever possible. However, it is better not to quote than to misquote
a section number.
(iii) Pay heed to the instructions given on the cover page of the answer paper.
(iv) Write in a neat and legible hand-writing.
(v) Answer all parts of a question one after the other; do not answer different parts of the same question at
different places.
(vi) Determine the length of the answer having regard to the marks allotted to the question.
88 HOW TO FACE CA EXAMINATIONS ?
Final Course is composed of two levels viz., Group-I and Group-II.
It comprises of Eight Subjects of 100 marks each.
Final Course
Group-I
Group-II
Paper 1: Financial Reporting
Paper 2 : Strategic Financial Management
Paper 3 : Advanced Auditing and Professional Ethics
Paper 4 : Corporate and Allied Laws
Paper 5: Advanced Management Accounting
Paper 6 : Information Systems Control and Audit
Paper 7 : Direct Tax Laws
Paper 8 : Indirect Tax Laws
Level of Knowledge: Advanced
90
PAPER 1: FINANCIAL REPORTING
Know your syllabus
Accounting is one of the core subjects in the Chartered Accountancy course. The significance of the subject can
be judged from the fact that at every level of CA course we have a paper on Accounting and that too the first paper.
At Final level the name of the paper is 'Financial Reporting'. The aim of the paper on 'Financial Reporting' is to
gain comprehensive understanding of all aspects relating to financial reporting practices and you are expected
to have an advanced knowledge of reporting practices and valuation principles used in analyzing these financial
reports.
As a first step, you should acquaint yourself with the syllabus of financial reporting so that you can plan your
studies accordingly. The study material of 'Financial Reporting' is divided in ten chapters/topics based on the
syllabus. The topics covered under this paper have been grouped for the sake of your understanding as follows:
Group
Chapter Based on
Accounting Standards
Chapter based on
Guidance Note
Chapters not based on
specific Accounting
Standards but Implication
of Provision of AS are there
Financial Reporting for
Financial Institutions
Developments in Financial
Reporting
Topic
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Accounting Standards and Guidance Notes
International Accounting Standards, International Financial
Reporting Standards, Their Interpretations and US GAAPs-An
Overview
Accounting for corporate restructuring (including inter-company
holding)
Consolidated Financial Statements of Group Companies
Accounting and Reporting of Financial Instruments
Share Based Payments
Valuation of
Tangible fixed assets
Intangibles
Liabilities
Shares
Business
Mutual Funds
Non-Banking Finance Company
Merchant Bankers
Stock and Commodity Market Intermediaries
Value Added Statements
Economic Value Added
Market Value Added
HOW TO FACE CA EXAMINATIONS ?
91
Other
.
.
Shareholders' Value Added
Human Resource Reporting
Corporate Financial Reporting
Be familiar with the Knowledge inputs provided by the BoS
Planning – Time Management
Use of BoS Knowledge inputs in a systematic pattern
FIRST ROUND OF STUDY
Once you are aware of the syllabus, the next step is to assimilate the knowledge inputs provided by the Board of
Studies.. The following knowledge inputs of BoS will held indepth understanding of the subject:
1. Study Material (Volume I and II)
2. Practice Manual (Volume III)
3. Compilation
4. Suggested Answers
5. Revision Test Papers
6. Mock Test Papers
7. Students' Journal for academic updates.
Now, after knowing the various knowledge inputs provided by the Board of Studies, you should plan your studies.
You are advised to plan your studies taking into consideration the time available vis-à-vis the course contents.
Ideally, you should plan in a manner that you keep time for two rounds of revision after your study.
Financial Reporting, the question paper is purely practical. Therefore, you have to practice solving a good number
of questions on each topic. Considering the practical nature of the paper, start your studies from the day you
receive the course material. At the final level sure you have to undergo articleship training simultaneously,
therefore, it is suggested that you should study at least twelve to fifteen hours a week. By doing so, you will be able
to mange first round of complete study and two rounds of revision well before time. Your first round of study
should be completed well in advance that is at least three months before your exam. Keep some time leverage as
assimilation of the chapters may take more time than expected or planned.
Your second round of study i.e. your first revision should be over before one month of your exam. Your second
revision should be in the last month before exam so that you will be in the position to remember all the concepts.
Doing three rounds of study will help in boosting your confidence level in the subject, and will make you mentally
prepared to appear in the examination.
As you are aware that the syllabus of Financial Reporting covers Accounting Standards and Guidance Notes on
one hand and other topics on the other hand, so your planning should also be divided in two parts namely-
1. Accounting Standards and Guidance Notes
2. Other chapters of the course curriculum.
Every day when you start your study first revise the concepts which you have read the previous day and then start to
FINAL
learn new concepts. Remember, out of sight, out of mind. Ideally your first revision should be within 24 hours of
initial study, the second within the next one week.
Start your study with the study material. In study material concepts of the topic and the accounting treatment on
various transactions has been explained in detail with adequate illustrations. Analyse the underlying concepts
and try to understand the logic behind every accounting treatment given therein. Keep questioning yourself until
you are absolutely clear on the topic. Solve the illustrations after understanding the topic. For example, in the
chapter of consolidated financial statements, first the concepts of consolidation and the consolidation
procedures have been explained, then small illustrations based on each procedure like, analysis of reserves and
surplus of subsidiary, cost of control, minority interest, treatment of dividend etc. have been given after
explaining the concept and its accounting treatment. After explaining all the concepts, questions carrying more
than one adjustment are given for your practice.
After solving the illustrations given in the study material, solve the questions given in the practice manual.
Practice Manual is highly useful for the students appearing in the examination as it includes questions from past
examinations which would facilitate in thorough understanding of the chapters explained in the study material.
In accounting paper, it is very necessary that one should practice a good number of questions dealing with
different adjustments. Practice Manual will help serve this purpose. Your first round of study should cover both
Study Material and Practice Manual.
Your second round of study i.e. your first revision should cover practice of suggested answers of recent two to three
examinations. Suggested answers of past few examinations give you an idea of what type of questions are asked
in the examination and how to solve and present the solution for such questions in the examination. Solving the
question paper in the examination situation will help you, not only in time management but will also give you the
confidence to attempt different types of questions in the examination.
After you complete revision of whole syllabus atleast once, you should solve the questions given in the RTP. For
every examination, Board of Studies comes out with a Revision Test Paper. Revision Test Paper is issued for every
attempt containing a fresh set of questions which will help you to evaluate your preparation level. RTP of Financial
Reporting is divided into two parts namely Part I: Recent amendments, notifications and announcements which
are relevant for that particular examination and is not given in the study material or was not applicable in the
immediate past examination. You will be able to know all such relevant information applicable for the exam at
one place. Part II carries questions and answers for your practice. In Financial Reporting, questions on each topic
are given with full solution to enable you to get an insight on how to present the solutions in an orderly manner. In
Financial Reporting paper, RTP of past few attempts can also be referred subject to amendments for which you
have to refer the latest Study Material and RTP.
After second revision of the complete syllabus, you may assess your preparation by taking mock tests conducted
Step 1 Study material
Step 2 Practice Manual
SECOND ROUND OF STUDY
Step 3 Suggested answers
Step 4 Revision Test Papers (RTP)
THIRD ROUND OF STUDY
Step 5 Mock Test Papers
92 HOW TO FACE CA EXAMINATIONS ?
by various branches at their end. Also Mock test papers are hosted on the institute's website www.icai.org which
you may download and solve within a time period of three hours.
Prepare concise notes in the first round of study itself. Your notes should be prepared in a manner, which
supplements your understanding of the concept and the illustrations you have solved. You may either make a
separate copy where you write down the important concepts of the chapter or can underline the important
concepts in the book itself and read those underlined portion at the time of revision. You should also shortlist the
illustrations to be revised again in your second and third round of study. Short listing of illustrations should be
based on the difficulty you faced while solving the question. Besides preparation of important points of the topic
(which will help you to recapitulate the whole concepts), a summary of tricky points and adjustments gathered
from the practice of various good illustrations may also be prepared which will help in grasping the intricate
practical aspects. Such tricky points or adjustments should be cross linked with the concerned illustration
number so that at the time of revision you not only study the accounting treatment but also refer the whole solution
again. These notes may be accompanied by the proforma of relevant accounts.
For example: when your are preparing notes for chapter 5, it is advisable that you start studying with consolidation
of one subsidiary and prepare notes by writing down the consolidation procedures for the same. Then solve
illustrations which involve two subsidiaries and one holding. Then move to the illustration which requires
consolidation of chain holding.
There are three working notes which if prepared correctly will mean that half the work has been done and then
drawing a consolidated balance sheet will be an easy task for you. These working notes are:
1. Analysis of profit of subsidiary into pre-acquisition and post acquisition period and the share of such profit to
holding and minority interest.
2. Calculation of total amount of minority interest to be shown in the balance sheet.
3. Calculation of cost of control or capital reserves arising on acquisition of shares in a subsidiary company.
For preparing the working note one, as stated above, you need following information:
a. Percentage of shares acquired in subsidiary;
b. Date of acquisition of shares that established the holding-subsidiary relationship.
c. Balance of reserves and surplus as on the date of acquisition.
d. Any revaluation of assets or liabilities on the date when such relationship came into existence
e. Any dividend outstanding, especially on preference shares.
f. Any distribution of profit in post acquisition period from pre-acquisition period either in the form of dividend
or bonus shares.
In preparing the working note 2 of Minority interest, following items are required:
a. Percentage of share capital (nominal value) (equity and preference both)
b. Share of pre-acquisition profit
c. Share of post acquisition profit
d. Dividend on share capital at point (a) above.
Likewise, you can prepare notes. Such type of notes will help you at the time of your revision, provided you write
Important points to be kept in mind
1. Preparation of notes
FINAL 93
crisply in a manner which will easily be recapitulated.
There are some chapters which require the solution or financial statements to be presented in particular format.
You should make it a practice to adopt the prescribed formats while solving and presenting the accounts of
particular topics. For example: Financial Statements of companies should be in the format prescribed in the
Schedule VI to the Companies Act, 1956. The format of presentation of Value Added Statement should be kept in
mind while solving the problems on that topic.
In the paper of Financial Reporting, Accounting Standards cover major portion of syllabus. So you are advised to
gain indepth knowledge of accounting standards. Here, it is worth mentioning that, out of 31 effective standards,
eighteen accounting standards were covered in the IPCC syllabus also. Since, you are already aware of the
provisions of those standards, you have to recapitulate the same and practice higher level questions in addition
to the questions dealt with at the IPCC level. Practice of higher level questions on these standards is necessary in
order to match the advanced level of knowledge required in the Paper of Financial Reporting. For remaining
standards, it is advisable to first go through the respective units of that standard in chapter one. After studying the
explanation on Accounting Standards, we recommend that you go through the text of accounting standard once.
By doing so, you will gain indepth knowledge and conceptual clarity of the standards.
We at Board of studies endeavor to update you with the latest amendments or notifications as and when they are
issued. One of the sections in the Students' Journal is on 'Academic Update' which contains recent
amendments in accounting also. You should be in a habit to read this continuously as it will help you in avoiding
last moment pressure to acquaint yourself with all the relevant amendments. Also list of publication comprising
of all relevant accounting standards and guidance notes are published well in time in the Students' Journal and
the institute's website to apprise you with the applicability part of the same in the particular examination.
The provision of accounting standards have to be kept in mind and applied while studying the related chapter
based on the particular accounting standard. If your concepts are clear relating to a particular standard, you
should not face any problem in applying the same to solve problems in an inter-connected chapter. Sometimes
even though the chapter may not directly relate to an accounting standard, it may contain adjustments involving
application of one or more standards.
For example, while preparing Consolidated Financial Statements of parent and subsidiary, you have to apply
provisions of AS 21. Similarly, for treatment of Investment in Associates and joint ventures you have to apply the
provisions of AS 23 and AS 27 respectively.
The provisions of various statutes should also be kept in mind while reading the chapters. For example, in the
preparation of financial statements of Companies, it is quite possible that a particular item may be dealt in two
different ways. For example - treatment of preliminary expenses has to be done on the basis of section 78 of the
Companies Act, 1956 or as per AS 26, depending on other information available. For example, if there is
securities premium shown in the books, then preliminary expenses should be written off against it. If securities
premium is not available, then preliminary expense is to be charged to Profit and loss account of that year as per
2. User of proper and prescribed format for presentation of accounts
3. Recapitulation of previously read Accounting Standards and some topics
4. Keep yourself continuously updated
5. Keep in mind the Inter-linking of various topics
94 HOW TO FACE CA EXAMINATIONS ?
AS 26. In such a case, AS 22 will also come into the picture. As per Income tax, preliminary expenses are
allowable in five years and as per AS 26 it is to be fully charged to Profit and Loss account of that year. This gives
rise to Deferred Tax Liability.
We have made an attempt to explain with the help of tabular form given here under the manner in which concepts
contained in the particular chapter of the study material have to be interlinked with the related provision in
another chapter of the study material and read together:
Chapter/
unit Number
Chapter 1
All is uploaded by FOCUS Institute Saharanpur Shivam Gupta
Chapter 2
Name of chapter/unit
Accounting Standards
and Guidance Notes
Overview of IFRS and US
GAAPs
Inter-Linking
In the paper of Financial Reporting, there are certain chapters,
study of which requires the knowledge of some specific
accounting standards. Therefore, you should keep in mind the
provisions of such accounting standards and relate them
appropriately at the time of studying that chapter.
For example
1. Provisions of AS 14 are to be applied at the time of
studying the chapter of Corporate Restructuring
specifically in the selection of method of amalgamation
and calculation of purchase consideration.
2. Provisions of Guidance Note on Accounting for Employee
Share Based Payment should be specifically kept in mind
while studying chapter 7 Share Based Payments
Sometimes, it may happen that two standards have to be
applied simultaneously. Your study should be in such a manner
that you are able to apply multiple standards to solve question.
For example,
1. Refund of government grant on account of non-fulfillment
of specific conditions attached to the grant will attract
provisions of AS 12 as well as provisions of AS 5 i.e. extraordinary
item.
2. Treatment of goodwill arising from different situations
also calls for application of Accounting Standard. For
example, Goodwill calculated on consolidation is not
recommended for amortization as per AS 21. However,
purchased goodwill on amalgamation in the nature of
purchase is to be amortised over the period as per AS 14.
3. Self generated goodwill is not recorded in the books while
purchased goodwill is recorded in the books.
Note: Accounting standards are very important and questions
carrying, in total, 20-30 marks are asked in the exam from this
topic.
The chapter mentions about significance differences as well
as similarities between IFRS, US GAAP and existing
FINAL 95
Chapter 3
Chapter 4
Corporate Financial
Reporting
Accounting for Corporate
Restructuring
accounting standards. Here, the knowledge acquired from
study of chapter 1 have to be applied to find out the differences
and similarities between existing accounting standards and
IFRS or US GAAPs.
This chapter explains the reporting practices followed and the
various statutes governing the functions and financial
statements of a company. Co-relate the study of this chapter
with chapter 4 regarding the role of the Companies Act, 1956,
SEBI Rules and Regulations and Companies (AS) Rules, 2006
on a company.
For example,
1. Schedule VI to the Companies Act, 1956 is basically
meant for presentation of financial statements of the
companies. The format explained therein will be used in
all the illustrations of chapter 4 requiring preparation of
financial statements viz balance sheet and profit and loss
account.
Also tr y to understand the different approaches
recommended by different Acts, and which approach to adopt.
For example
1. As per notified AS 3 of the Companies (AS) Rules, 2006,
Cash flow from operating activities can be prepared either
by direct method or by indirect method. However, as per
SEBI Regulations, cash flow from operating activities to
be presented by indirect method only.
The chapter deals with restructuring of companies and
accounting treatment thereon.
Your study for this chapter should be supported by the
provisions of the Companies Act, 1956 applicable to a
company alongwith the provisions of Accounting Standards
specifically, AS 14.
For example
1. Buy back is also a form of restructuring of company's
equity. You should keep in mind the provisions stated in
section 77A of the Companies Act for buy back of shares
while solving the problems based on buy back of shares.
2. Restructuring includes amalgamation of companies.
There is a specific accounting standard which deals with
amalgamation i.e. AS 14. Therefore, you should
remember the provisions of AS 14 which you have already
studied in chapter 1 and co-relate the same while solving
the problems on amalgamation.
Like in the case of amalgamation in the nature of purchase,
purchasing company has to take the statutory reserves to their
96 HOW TO FACE CA EXAMINATIONS ?
Chapter 5
Chapter 6
Chapter 7
Chapter 9
Consolidated Financial
Statements
Accounting and
Reporting of Financial
Instruments
Share Based Payments
Valuation
amalgamated balance sheet and correspondingly, debit
'Amalgamation adjustment account' till the time the statutory
reserves are shown in the balance sheet.
Note: One question of 16 marks is generally asked on this
topic.
Provisions of AS 21, 23 and 27 should be kept in mind while
studying this chapter.
For example
Adjustment of preference dividend of subsidiary companies
held outside the group at time of calculating parents share of
profit in subsidiary is as per para 27 of AS 21.
Note: This is also a popular topic and at least one question of
16 marks is generally asked on this topic.
This chapter is based on Accounting Standards 30, 31 and 32
dealing with recognition, measurement, presentation and
disclosure of Financial Instruments. For better understanding
of this chapter, it is very necessary that you should be aware of
the provisions explained in the above mentioned accounting
standards.
Note: One question carrying 8 marks is generally set on this
topic.
There is a Guidance Note on Employee Share Based Payment.
This whole chapter is mainly based on the above mentioned
Guidance Note. Therefore, you should study this chapter
keeping in mind the provisions of the above Guidance Note.
Note: One question of atleast 8 marks is generally asked on
this topic.
This chapter deals mainly with valuation of goodwill, brand,
and shares. For treatment of goodwill, you should keep in
mind the provisions of AS 26 and 28. Also methods of
calculating goodwill either by average profit method, or super
profit method or annuity method or capitalization method has
already been studied by you at CPT / IPCC level.
Note: This is one of the favourite topics of the paper-setter. A
question of 16 marks is generally asked on this topic.
Note: Chapter 8 deals with reporting by different financial institutions and chapter 10 deals with additional nonmandatory
reporting like value added report or economic value added etc. These chapters are not specifically
inter-related with any other chapter or any accounting standards.
FINAL 97
It is observed in the past examination that atleast one question carrying two sub-parts of 8 marks each is asked
on this topic. Sometimes small questions of 4 to 5 marks are also asked from the Chapter 8.
Disclaimer: The marks mentioned above are to explain the relative importance of the topic and not to recommend
selective study in any case. The above marks may change depending on the length of the questions selected and
the calculations involved therein.
Besides the general tips given in the first part of this booklet, certain tips mainly concerning the accounting paper
are:
Certain statutes prescribe specific formats for presentation of the accounts. You should take care of the same at
the time of solving the questions in the exam. Accounts presented in the prescribed manner will help you in
scoring due marks.
In accounts, your solution is generally divided in two parts viz- main solution and working notes. Working notes
form part of your solution and carries marks. Therefore, it is advised that calculations made on your calculator
should also be written in your answer sheet as working note, wherever required, neatly and precisely. Also your
working note should be cross referenced with the figure used in the main solution so that examiner can easily
understand that how you have arrived at the particular figure.
Support your answers/conclusions with proper reasoning. Answers for questions based on accounting
standards should be supported with provisions of that accounting standard rather than a mere common sense or
guess work. It is not required to quote paragraph number of Accounting standard but you are expected to quote
accounting standard number alongwith the name of the standard. However, if you state, paragraph number of
accounting standard, then it will add value to the solution and will also help create a good impression in the mind
of the examiner. You should quote number of accounting standard or name only when your are sure. It is better
not to quote than to misquote the accounting standard number.
In case a question leaves room for making an assumption and there is a possibility of more than one assumption,
it is important to clearly state the assumption you have taken and solve the question accordingly. For example, in
case of valuation of goodwill, if question does not clearly state as whether to take closing capital employed or
average capital employed and there is scope of calculating both, then clearly mention your assumption in the
answer-sheet.
Your professional approach and qualitative effort is the key to pass CA examination. To be a successful chartered
accountant you should be able to analyse and develop an understanding of published financial statements and
annual reports of companies. This exercise will enable you to know, how the various accounting concepts,
conventions, rules, principles and standards are applied in real life situations.
Tips for examination
1. Use of proper formats
2. Adequate Working Notes
3. Answer the questions with due emphasis on the provisions of Accounting Standards
4. State the assumption clearly
Conclusion
98 HOW TO FACE CA EXAMINATIONS ?
PAPER 2: STRATEGIC FINANCIAL MANAGEMENT
The subject “Strategic Financial Management” (SFM) is basically a blend of Financial Management and Strategic
Management, which is the need of today's dynamic world. In today's time Chartered Accountants are being
called upon not only to assume finance function but also for planning, operating and monitoring of the other
functions as well. With the globalization of the Indian economy the finance function has acquired critical
importance especially in the field of International Financial Management. Further, the finance function also
become crucial as the now a days various types to structured financial are in the market.
The aim of this paper is to test whether students have acquired a sound knowledge of the advanced concepts and
techniques of financial management (both domestic and international), capital market and financial products
etc. and to test the ability of applying them in real life situations .
Broadly the whole syllabus of the paper can be divided into following sections:
The Section-wise analysis of the syllabus is as follows:
The first topic of the Section I study the interface of Financial Policy and Strategic Management. Second topic
aims at developing ability to analyse and apply various techniques for Capital Budgeting decision under Risk and
Uncertainty conditions. Topic of leasing is related to decision for mode of financing to acquire any asset either on
Section I
FINAL 99
Section
I
II
III
IV
V
Topics
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Financial Policy and Corporate Strategy.
Project Planning & Capital Budgeting.
Leasing decisions including cross border leasing.
Dividend decisions.
Indian Capital Market including role of various Primary and Secondary Market
Institutions including Capital Market Instruments, Commodity derivatives,
OTC derivatives and Forward Rate Agreement.
Security Analysis.
Portfolio Theory and Assets Pricing.
Financial Services in India.
Mutual Funds.
Money Market Operations.
Foreign Direct Investment, Foreign Institutional Investments and
International Financial Management.
Foreign Exchange Exposure & Risk Management.
Mergers, Acquisitions and Restructuring.
lease basis or borrow and buy basis. After dealing with complicated issues of decision making next comes
theories relating Dividend Decision, involving the decision related distribution of surplus.
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The topic of Financial Policy and Strategic Management being of theoretical nature can be directly referred from
the Study Material. However, in order to analyze the nature of question usually asked in examination, Practice
Manual shall be proved very helpful.
In examination from remaining three topics most of the times numerical questions are asked in addition to
theoretical questions. Therefore students are advised to refer Practice Manual as in the beginning of every
chapters it contains brief summary of the topics covered as well as important formulae. Students, after going
through this summary and formulae can attempt as many as numerical questions for practice purpose.
In questions of Capital Budgeting and leasing special attention should be paid to following points:
Think about the amount and timings of cash flows.
Correct discounting rate should be applied for computing the Present Values.
Taxation aspects of the decision taken.
The topic of Dividend Decision is based on various Dividend theories and models. Accordingly, students should
attempt practical problems from Practice Manual for better understanding of these models. In examination it is
very important to apply correct model as per the facts and figures given in the question.
First topic of this Section is based on the study of Indian Capital Market and latest financial products such as
derivatives ,indexed funds etc. and aims to develop understanding of nature, structure and structure of these
products. Next topic with which students are supposed to be well versed is Security Analysis consisting of
Technical and Financial Analysis including special insistence on Bond Valuation. The residual topic of this
Section is Portfolio Management involving theories related to the allocation of funds among various option
available for investment to optimise the return.
From this Section in Examination both theoretical as well as practical questions are asked in Examination. It is
advisable for students after a plain reading of the topics covered in Study Material they should refer Practice
Manual to understand the nature and type of theoretical as well as numerical questions asked in Examination.
The important points that should be kept in view by students are as follows:
Proper understanding of important concepts e.g. derivatives etc. for both theoretical as well as practical
point of view.
Correct formula should be applied in questions of Portfolio Management, Security Analysis etc..
The main topics of this Section are Mutual Fund and Financial Services. Since with the development of financial
market a variety of Financial Services have emerged. The topic of Financial Services deals some kind of these
Financial Services. Mutual Fund is one of the important topic of this Section as now a days Mutual Fund
Investment is very popular among the small investors. This topic involves the study of the various schemes of
mutual fund and their evaluation.
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Section II
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Section III
100 HOW TO FACE CA EXAMINATIONS ?
In examination most of the times practical questions are asked, although theoretical portion is also important
and should not be ignored at all. The students are advised to attempt practical questions of the topic of Money
Market from Practice Manual because of their unique nature and normal repetition in Examination.
Further while attempting the numerical questions of Mutual Fund following points should be kept in view.
Correct calculation of NAV.
Correct calculation of additional Bonus Units in case of reinvestment of income.
Since now a days Indian economy has become a global economy, management of foreign exchange has become
unavoidable. Accordingly one chapter on FDI and FIIs briefs about various sources of international financing and
financial management in international context. Next topic mainly deals with foreign exchange rate mathematics
and its risk management techniques.
The first topic of this Section is more theory oriented. Hence, in addition of plain reading of this topic from Study
Material students are advised to refer Practice Manual to understand what types of question are asked in the
examination.
The topic of Foreign Exchange Risk Management is more practical oriented and is important from examination
point of view. While attempting numerical questions of this topic, following points need additional attention:
Using correct symbol for currencies of different nations.
Carefully determine whether any foreign currency is at premium or discount.
With the spread of Merger and Acquisition trend in last few years, the study of Merger and Acquisition decision
from financial point of view has become a strategic decision. A chapter on Merger and Acquisition dealing with
such strategic decision is there. This is inclusive of the Business Valuation, Financial Restructuring and Demerger
etc.
This topic is important from examination point of view. Student must be able to value financial assets, such as
equity shares etc. and a business as a whole.
Evaluation of financial choices is key theme here and candidates are expected to be able to discuss, as well as
apply a range of Valuation methods.
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Section IV
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Section V
PAPER 3: ADVANCED AUDITING AND PROFESSIONAL ETHICS
Auditing is an important area of core competency of the Chartered Accountancy Profession. It is the heart of CA
course as much as it is at the head of the profession of Accounting. In a way, Auditing is the conscience keeper of
Accounting and is closely related to Accounting, Management Accounting, Company Law, Taxation and other
subjects. A good knowledge of these latter subjects is a pre-requisite for acquiring proficiency in Auditing theory
and practice. Thus, while studying the subject of Auditing, students should also draw their knowledge from the
above subjects and adopt an integrated approach for the purpose as this is the subject which involves application
FINAL 101
of theoretical knowledge of other subjects.
Auditing is largely a practical and application discipline. A mere bookish knowledge of concepts, procedures and
processes has little meaning except for examination purposes at a relatively general level as in undergraduate
and graduate courses. But in a professional course like Chartered Accountancy, students learn the Auditing
concepts and techniques as also their intricacies purely for purposes of applying them in practice in their audit
work.
The syllabus of Advanced Auditing and Professional Ethics is divided into twenty two chapters in our study
material covering in detail, principles of Auditing, Standards on Auditing issued by the ICAI, reporting on internal
control as a part of Risk Assessment and Internal Control, specific audit issues classified by organizations like
Company Audit, Audit of Banks, Audit of General Insurance Business, Audit of Co-Operative Societies, NBFCs
and Audit of Public Sector Undertakings, special audit issues like audit under Fiscal Laws, role of auditor under
clause 49 of the Listing Agreement, Audit of Consolidated Financial Statements, Investigation and Due
Diligence, Salient features of Sarbanes Oxley Act, 2002. In addition to above, Peer Review is considered as an
important step towards maintenance and improvement of audit quality similarly, Professional Ethics are
regarded as a foundation to the audit function, which is essentially developed on the foundation of ethical norms,
which has so far brought name and fame to the profession. You all students of Final course should read these
chapters with sincerity and imbibe the norms explained. These norms should be the guiding force while you will
work as a chartered accountant.
You, at Final level in particular should gain good knowledge and expertise of Engagement and Quality Control
Standards and also keep yourself well informed on the contents of various Guidance Notes, The Companies Act,
1956, Tax Audit, Code of Conduct and Professional Ethics, Statements on Qualifications in Auditors Report,
Statement on CARO, 2003, and Statement on Peer Review etc. issued by the Institute. You should understand the
concept underlying the problems. The clarity in the concept will help for dealing the questions.
The auditing knowledge inputs provided by the Institute through the study material and other publications and the
practical training inputs provided by the Audit firms during the practical training stage reinforce one another. You
should, as part of your practical training, involve yourself deeply in the professional audit work done by your
principals for the purpose of getting an intense practical knowledge and skills in Auditing. This will help to
measure up to the examination standards in the subject in which questions are meant to test the applicational
knowledge/expertise.
For the purpose of its full coverage you may segregate the syllabus of this paper into seven parts for preparation.
In first part you may prepare Engagements and Quality Control Standards on Auditing (SA/SRS/SRE/SAE) and
Guidance Notes for which list of applicable standards are published by ICAI on time to time. For doing preparation
for Part First, read the bare standard alongwith its application and other explanatory material. After reading this
you are advised to draw a flow chart or some diagrammatic presentation for your better understanding and
revision purpose. You are also expected to focus on the application aspects of each of the Auditing Standards and
guidance notes. As it is important to have the basic understanding, the objective is to the gain the ability to
practice the same in the working scenario.
In part two, you may prepare audit strategy, planning and programming, risk assessment All is uploaded by FOCUS Institute Saharanpur Shivam Gupta
and internal control
102 HOW TO FACE CA EXAMINATIONS ?
evaluation, audit under computerized information system (cis) environment, special audit techniques like
selective verification; statistical sampling: special audit procedures; physical verification of assets, direct
confirmation of debtors and creditors, analytical review procedures, risk-based auditing etc. While doing
preparation for this part, you may interlink it with Auditing Standards, specially the series of SA 300 – 499 i.e.
Risk Assessment and Response to Assessed Risks and series of SA 500 – 599 Audit Evidence.
For the preparation of Audit Strategy, Planning and Programming, you should practice developing an
“Engagement Approach Document”. The Approach document should primarily outlined the activity based
scoping of an engagement and planning of the procedures for each of the activity. An Approach Document should
treat each engagement as a project which would highlight the resource requirements in each activity area and
scheduling as well.
Similarly for the Risk Assessment and Internal Control Evaluation you should gain understanding of the Risk
Management Framework; relevance of control procedures, control assessment questionnaires and the
complementary role that the internal and external audit plays.
Further you should apply the accounting knowledge; and business intelligence framework along with the ratio
analysis and trend reviews for any un-reasonable gaps in inputs provided / made available.
In part three, you may incorporate audit of limited companies, rights, duties and liabilities of auditors, third party
liability and Audit Committee and corporate governance. For better understanding, you must have good
knowledge of the Companies Act, 1956 which is pre-requisite. Not only knowledge but updation of knowledge is
also required on time to time basis.
In part four, you may include Audit Reports and Audit of Consolidated Financial Statements. While doing study of
Audit Reports, you may interlink this with series of SA 700-799 i.e. Audit Conclusion and Reporting, Statement on
CARO, 2003 and Statement on Reporting under Section 227 (1A) of The Companies Act, 1956. You are also
required to practice the drafting of qualifications. You may also scan through the Annual Financial Statements of
Companies to analyse the notes and qualifications, if any, incorporated by the Auditors in their Audit Report.
In part five, you may include miscellaneous audits like audit of banks, insurance companies, co-operative
societies, nbfcs, audit under fiscal laws, cost audit and special audit assignments. For the preparation of part
five, deep knowledge of statutory requirements is a pre-requisite for validation of adherence of the business with
applicable laws. For this you should follow a check-list approach ensuring completeness of compliance
validations. Further, you should update yourself with latest notification, circulars etc. You may also interlink the
above part with guidance notes already covered in part one.
In part six, you should prepare special features in audit of public sector companies, internal audit, management
and operational audit, investigation and due diligence and concept of peer review. For the preparation of this
part, you are again required to have sound knowledge of statutory requirements.
Last but not the least; in the seventh part you may prepare Professional Ethics. Generally it has been observed
that there is one question i.e. case studies based question of 16 marks in the examination paper. For better
nd preparation of this part you are advised to read the 22 Chapter of the Study Material in detail which elaborates
FINAL 103
PAPER 4: CORPORATE AND ALLIED LAWS
Introduction
Syllabus Coverage
The liberalization and globalization of our economic policies in tune with the global changes brought several
reforms in the Corporate and Allied Laws of our country. A scheme of well-structured Corporate and Allied Laws is
a sine qua non for the corporate growth. No corporate entity can effectively work and survive without meeting its
legal obligation. Corporate law is the study of how shareholders, directors, employees and consumers, the
business community and the environment interact with each other. The Corporate Law defines the internal rules
of the company. These laws are being amended and fine tuned from time to time in accordance with the changes
that are taking place within the country as well as outside. This process will continue to be more dynamic in times
to come, vibrant for corporate growth, infusing more capital into the country and at the same time protect and
safeguard the interests of various stakeholders.
At the Final level, Paper-4 deals with Corporate and Allied Laws, where the level of knowledge prescribed is that of
'Advanced knowledge.' The paper consists of two sections:
this topic alongwith example. Further, you may write down all the clauses in notes form for the revision purpose.
While answering the case studies based question, answer should be split in to Two parts, first one is Fact of the
cases and second one is the relevant concept and finally give your good conclusion in this way the case study and
application oriented theory questions can be handled.
As in all other subjects of CA course, to excel in Audit proper preparation and planning is very much required to
avoid failure. Further Audit is a paper which requires a practical approach towards actual Audit work. You should
in the first instance focus on studying Auditing concepts, procedures and techniques from the study material. The
knowledge being so derived may be related by the students to the practical work in the field of Auditing which they
do as part of their Articles training.
Part three, five and six are based on statutory requirement. Therefore, you must be cautious about the
amendments and updates happened at least six months before the exam and also go through the other
amendments. Further, you should also take a keen interest in updating yourself on contemporary developments
in the field of auditing by regularly referring to articles on Auditing in CA Journal, Students' monthly Journal and
other relevant professional journals, publications and books.
It is also advisable to mention applicable Engagement Quality Control Standards or Accounting Standards or
Sections in audit paper wherever required. Answers should be crisp, precise and to the point to secure good
marks.
Audit is a paper requires lots of quick and logical application of mind to answer practical All is uploaded by FOCUS Institute Saharanpur Shivam Gupta
problems. Hence, give a
reading to ICAI audit study material and Practice Manual to understand the depth and figure out the efforts and
time required for preparation. In addition to study material suggested answers of past examination, Revisionary
Test Papers, Standard book etc should also be read. Finally don't forget to revise as revision is also very important
to crack the examination.
104 HOW TO FACE CA EXAMINATIONS ?
In brief, the students are expected to have not only analyzing skills but also application skills in company law,
while in allied laws they are expected to have the analyzing skills (an overview of various allied laws) stated in the
syllabus. Accordingly, preparation strategy deserves care, concern and caution.
Our study material of Corporate and Allied Laws is divided into 22 chapters. Students may focus on the following
chapter wise major topics from the examination perspective:
Major topics to be focussed
Chapter No.
1.
2.
Name of the Chapter
Accounts And Audit
Dividend
Major Topics
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Maintenance of Books of Accounts
Persons who can Inspect
Persons Responsible for Maintenance & Penalty
Form and Contents of Balance Sheet and Profit and
Loss Account
Deviation from Accounting Standards
Authentication of Annual Accounts
Filing with the Registrar
Holding & Subsidiaries Accounts
Disqualifications of Auditors
First Auditors
Subsequent Auditors
Auditors' Appointment by Special Resolution
Ceiling on Number of Audits
Remuneration of Auditors
Special Audit
Audit of Cost Accounts
Compulsory Transfer to Reserves
Transfer of Higher Percentage of Profits to Reserves
Declaration of Dividend out of Past Reserves
Declaration of Interim Dividend
Time Limit
Unpaid or Unclaimed Dividend
Payment of Unpaid or Unclaimed Dividend
Investor Education & Protection Fund
FINAL 105
Section
Section A
Section B
Name
Company Law
Allied Laws
Marks
70
30
Objective
To be able to analyze and apply various provisions
of the Companies Act, 1956 in practical situations
To develop ability to analyze the requirements of
laws stated in the Section
3.
4.
5.
6.
7.
9.
10.
11.
Directors, Powers,
Managerial
Remuneration
Meetings, Powers Of
The Board And Related
Party Transactions
Inspection And
Investigation
Compromise,
Arrangements And
Reconstructions
Prevention Of
Oppression And
Mismanagement
Corporate Winding Up
And Dissolution
Producer Companies
Companies
Incorporated Outside
India
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Appointment of Directors
Share Qualification for Directors
Powers of Directors and Restrictions thereon
Directors not to hold Office or Place of Profit
Loans to Directors (Section 295)
Political Contributions
Managerial Remuneration
Managing Director
Inter Corporate Loans and Investments
Introduction
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Meetings of Directors
Disclosure of Interest In Contracts
Sole Selling Agents
Inspection
Investigation
Power of Inspectors
Compromise and Arrangement
Reconstruction
Oppression and Mismanagement
Who May Apply To The Company Law Board When
Oppression or Mis-Management Is Complained of?
Powers of The Company Law Board on Application
Under Sections 397 or 398
General Provisions on Winding-up
Objects and Formation of a Producer Company
Memorandum Of Producer Company
Articles of Association
Management
General Meetings
Share Capital and Member Rights
Finance, Accounts and Audit
Foreign Companies
Application of Sections 592 to 602 to Foreign
Companies
Documents, etc., to be Delivered to the Registrar By
Foreign Companies
106 HOW TO FACE CA EXAMINATIONS ?
12.
13.
14.
15.
16.
17.
18.
19.
20.
Offences And
Penalties
E-Governance
Other Relevant
Miscellaneous
Provisions Of The
Companies Act, 1956
Corporate Secretarial
Practice - Drafting Of
Resolution, Minutes,
Notices And Reports
The Securities And
Exchange Board Of
India (SEBI) Act, 1992
Securities Contracts
(Regulation) Act, 1956
Foreign Exchange
Management Act,
1999
The Competition Act
2002
Overview Of Banking
Regulation Act, 1949,
The Insurance Act,
1938, The Insurance
Regulatory And
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Registration of Prospectus
Requirements as Regards Prospectus
Offences Compoundable – Section Wise List
MCA 21 Project
Director Identification Number (DIN)
Some FAQs on DIN and E-filing
Government Companies
Provisions for Removal of Administrative Difficulties
Certain Companies to have Secretaries
Company Correspondence & Reports
Record Maintenance and Filing of Documents
Establishment of SEBI Board
Powers & Functions of SEBI
Penalties
SEBI (Issue of Capital and Disclosure Requirements)
Regulations, 2009
About Corporatisation & Demutualisation of Stock
Exchanges
Granting of Recognition
Power of SEBI
Power to Make Rules
Power of SEBI to Make Regulations
Analysis Of Important Definitions
Regulations And Management Of Foreign Exchange
Contraventions and Penalties In Brief
Adjudication and Appeal
Definitions
Reserve Fund
Audit
Provisions Related To Insurance
Important Definitions
Enforcement of Security Interest
Miscellaneous Matters
FINAL 107
21.
22.
Development Authority
Act, 1999, The
Securitisation And
Reconstruction Of
Financial Assets And
Enforcement Of
Security Interest Act,
2002
Prevention Of Money
Laundering Act, 2002
Interpretation Of
Statutes, Deeds And
Documents
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Definitions
Obligation of Banking Companies, Financial Institutions
and Intermediaries
Rules of interpretation/construction
Internal aids to interpretation/construction
Level of Knowledge
Orientation to Paper
Since the level of knowledge required in this subject is that of Advanced Knowledge students should adopt
practical application oriented and analytical approach. Several Final students seem to be somewhat hesitant or
reluctant in giving enough attention to the provisions of various Acts and hence they tend to give a general
approach to the subject which should be avoided. From the very beginning a planned approach for preparation in
the subject needs to be developed.
A common comment of examiners at the Final paper relating to Law subjects was that candidates were generally
weak and slippery in their knowledge of basic provisions of the relevant laws as well as in application of
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knowledge and skills. Students have to especially strengthen themselves on this front since working knowledge
and application-oriented questions carry considerable number of marks in this paper.
In this paper, students should be able to pinpoint the legal point or issue involved in any statement of a problem or
issue and synchronize with the relevant legal provisions clearly and in a logical manner. Secretarial Practice
relating to Laws should also be given due weightage for study purposes. Students have to be always alert in
updating their knowledge of current developments, recent amendments in relevant laws and recent legal
decisions by regularly consulting journals like Chartered Accountant and Chartered Accountant Student. Final
course students have to be thoroughly knowledgeable of important guidelines, leading judgements,
notifications etc. Amendments if any taking place in any of law should be applicable for the examination provided
it is six months prior to the examination and if any Bill has become an Act, they should see that whether the
sections in the said Act/Amendment has been notified or not.
Avoid selective reading of chapters, as the question paper contains compulsory questions with coverage on all
the chapters. Changes by way of important amendments and having a wider ramification and consequential
impact on other Acts as well effect of other provisions within the law should be more specifically read and
understood. Give thoughts to your analysis in the form of various practical issues and situations and how you
108 HOW TO FACE CA EXAMINATIONS ?
would as an Expert by giving advice on the said matter. A scan through the previous year's examination papers will
give an idea as how the questions are framed so that preparation can be synchronized in that direction. While
reading study material you will come across different practical problems which you may note down separately.
This will enable you to consolidate your reading with practical analysis in an easier and time-bound manner. Cross
check your answers to the problems with the logical analysis of the sections and draw your conclusions
accordingly. Writing generalized answers should be avoided as it reflects your low preparation in the subject.
Prioritize your chapter reading based on time for consumption and weightage given in terms of marks. In nut shell
you have to prepare a Balanced Score card in the subject for yourselves so that you emerge as a winner.
They are the life blood to law and it is very much essential to have relevant Bare Acts while reading the study
material. While reading Bare Acts, you may test yourself side-by-side as to which of the subject-matter is dealt by
what section.
It is desirable to support answers with relevant sections and leading case laws on the matter wherever necessary.
Extra efforts are to be made in this direction. If by any chance, students do not remember the Section numbers
and Case Law while answering any question in the examination paper on the subject, they may not lose heart on
this score. They may otherwise strengthen their answer by appropriate reasoning and examples. However, they
may desist from citing wrong Section numbers or irrelevant Case laws.
The paper also includes secretarial practice relating to various laws and it is therefore important, that students
should pay equal importance to drafting skills such as drafting resolutions, agenda, notices and minutes of
meetings of the company and filing a petition/application before the Company Law Board.
This is an important area of concern and advice for the students. A common feedback from the Examiners was that
students are generally weak in the English Language though they are thorough in the subject. As a result, the
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