CA Final

AFM vs SFM (As Per ICAI Study MAT)

Chapter Name Introduced (New Stuff)
1. Financial Policy And Corporate Strategy  Advanced Role of CFO In Various Matters Including Value Creation
2. Risk Management No Change
3. Advanced Capital Budgeting Decisions New Chapter Introduced
4. Security Analysis  Equity Research and Tools Available
5. Security Valuation  Role and Responsibilities of Valuers
 Role of Valuers
 Responsibilities of Valuers
 Precautions Need to Be Taken By A Valuer Before Accepting Any
Valuation Assignment
6. Portfolio Management  Gold under Alternative Investment Avenues
7. Securitization  Risks in Securitization
 Credit risk or Counterparty risk
 Legal risks
 Market risks
 Tokenization
 Applications of Blockchain
 Risks associated with Blockchain
 Meaning of Tokenization
 Tokenization and Securitization
8. Mutual Funds  Evaluation of Mutual Funds
 Quantitative Parameters
 Qualitative Parameters
 Role of Fund Managers In Mutual Funds

SANJAY SARAF SIR

(CFA, FRM, MS-Finance, CTM, CPM, CIB, CIIA) 1|Page
 CA Final
AFM vs SFM (As Per ICAI Study MAT)
 Actively Managed Funds
 Passively Managed Funds
 Role of FIIs in Mutual Funds
9. Derivatives Analysis and Valuation  Exotic Options
 Exotic Vs. Traditional Option
 Types of Exotic Options
 Credit Derivatives
 Collateralized Debt Obligations (CDOS)
 Types of CDOs
 Risks involved in CDOs
 Credit Default Swaps (CDSs)
 Main Features of CDS
 Uses of Credit Default Swap
 Parties to CDS
 Settlement of CDS
 Real Options
 How Real Option is different from Financial Option
 Valuation of Real Options
 Type of Real Options
 Growth Options(Illustration 4)
 Abandonment Option(Illustration 5)
 Timing Option(Illustration 6)
 Weather Derivatives
 Electricity Derivatives
 Electricity Forwards

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 CA Final
AFM vs SFM (As Per ICAI Study MAT)
 Electricity Futures
 Electricity Swap
 Derivative Mishaps and Lessons
 Orange County’s Case
 Barings Bank’s Case
 Protector & Gamble (P&G) and Gibson Greetings’ Case
 Lessons from Derivative Mishaps
 Don’t buy any derivative product that you don’t understand
 Due diligence before making Treasury Department as a Profit
Centre
 Specify the Risk Limits
 Separation of Front, Middle and Back Offices
 Ensure that a hedger should not become a speculator
 Carry out Stress Test, Scenario Analysis etc.
10. Foreign Exchange Exposure and Risk Management  Role of Swift in Foreign Exchange
 National and International Payment Gateways
 Popular Derivative Products
 Forward Importer
 Forward Exporter
 FX Call Option
 FX Put Option
 IRS USD Floating to Fixed
11. International Financial Management  International Financial Centre (Gift City)
 Benefits of IFC
 Constituents of IFC

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 CA Final
AFM vs SFM (As Per ICAI Study MAT)
 GIFT City - India’s International Financial Services Centre
 Sovereign Funds
12. Interest Rate Risk Management  Benchmark Rates
13. Business Valuation  Going Concern and Non-Going Concern Valuation
 Valuation of Distressed Companies
 Modified Discounted Cash Flow Valuation
 DCF Valuation + Distress Value
 Adjusted Present Value Model
 Relative Valuation
 Valuation of Start Ups
 Why traditional methods cannot be applied?
 Value Drivers for startups
 Methods for valuing startups
 Berkus Approach
 Cost-to-Duplicate Approach
 Comparable Transactions Method
 Scorecard Valuation Method
 First Chicago Method
 Venture Capital Method
 Valuation of Digital Platforms
 Income Approach
o Discounting Rate
o Specific considerations
 Market Approach
 Cost Approach

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 CA Final
AFM vs SFM (As Per ICAI Study MAT)
 Valuation of Professional/ Consultancy Firms
 Impact of ESG on Valuation
14. Mergers, Acquisitions & Corporate Restructuring  Unlocking the Value Through Mergers & Acquisitions and Business
Restructuring
15. Startup Finance  Concept of Unicorn
 Few other reasons why India became such a sustainable environment
for start-ups to thrive in
 Succession Planning in Business
 Meaning of Succession Planning
 Why is there a need for succession planning?
 Business succession strategy
 Challenges

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