Objective

To acquire the ability to apply specific accounting standards  and  legislations  to different transactions and events and in preparation and presentation of financial statements of various business entities.

Contents

1. Process of formulation of Accounting Standards including Indian Accounting Standards (IFRS converged standards) and IFRSs; Convergence vs Adoption; Objective and Concepts of carve
2. Framework for Preparation and Presentation of Financial Statements (as per Accounting Standards).
3. i Applicability of Accounting  Standards  to various  ii Application of Accounting Standards:

• • AS 1  Disclosure of Accounting Policies
  • AS 2  Valuation of Inventories
  • AS 3  Cash Flow Statements
  • AS 4  Contingencies and Events Occurring After the Balance Sheet Date
  • AS 5  Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies
  • AS 7  Construction Contracts
  • AS 9  Revenue Recognition
  • AS 10  Property, Plant and Equipment
  • AS 11  The Effects of Changes in Foreign Exchange Rates
  • AS 12  Accounting for Government Grants
  • AS 13  Accounting for Investments
  • AS 14  Accounting     for     Amalgamations      (excluding     inter-company holdings)
  • AS 15  Employee Benefits
  • AS 16  Borrowing Costs Leases
  • AS 17  Segment Reporting
  • AS 18  Related Party Disclosures
  • AS 19  Leases
  • AS 20  Earnings Per Share
  • AS 21  Consolidated Financial  Statements  of  single  subsidiaries (excluding problems involving acquisition of Interest in Subsidiary at Different Dates, Cross holding, Disposal of a Subsidiary and Foreign Subsidiaries)
  • AS 22  Accounting for Taxes on Income
  • AS 23  Accounting for Investment in Associates in Consolidated Financial Statements
  • AS 24  Discontinuing  Operations
  • AS 25  Interim Financial Reporting
  • AS 26  Intangible Assets
  • AS 27  Financial Reporting of Interests  in Joint Ventures
  • AS 28  Impairment of Assets
  • AS 29  Provisions, Contingent Liabilities and Contingent Assets

4. Company Accounts

• • Schedule III to the Companies Act, 2013 (Division I)
  • Preparation of financial  statements  –  Statement  of  Profit  and  Loss, Balance Sheet and Cash FlowStatement
  • Buy back of securities
  • Accounting for reconstruction of companies

5. Accounting for Branches including foreign branches

PART I– COMPANY LAW AND LIMITED LIABILITY PARTNERSHIP LAW (70 MARKS)

Objective

To develop an understanding of the legal provisions and acquire the ability to analyse and apply the laws inpractical situations.

Contents

1. The Companies Act, 2013: including important rules and drafting of notices, resolutions –
   1. Preliminary
   2. Incorporation of Company and Matters Incidental thereto
   3. Prospectus and Allotment of Securities
   4. Share Capital and Debentures
   5. Acceptance of Deposits by Companies
   6. Registration of Charges
   7. Management and Administration
   8. Declaration and Payment of Dividend
   9. Accounts of Companies
   10. Audit and Auditors
   11. Companies Incorporated Outside India
2. The Limited Liability Partnership Act, 2008 including important Rules

PART II- OTHER LAWS (30 MARKS)

Objective

1. To develop an understanding of the General Clauses
2. To develop an understanding of the rules for interpretation of
3. To have basic understanding of the Foreign Exchange Management Act,

Contents

1. The General Clauses Act, 1897: Important Definitions, Extent and Applicability, General Rules of Construction, Powers and Functionaries, Provisions as to Orders, Rules, made under Enactments and Miscellaneous provisions.
2. Interpretation of Statutes: Rules of Interpretation of Statutes, Aids to Interpretation, Rules ofInterpretation/Construction of Deeds and
3. The Foreign Exchange Management Act, 1999: Significant definitions and concepts of Current andCapital Account

Note: If any new legislation(s) is/are enacted in place of the existing legislation(s), the syllabus would includethe corresponding provisions of such new legislation(s) with effect from a date notified by the Institute.

The specific inclusion(s)/exclusion(s) in the various topics covered in the syllabus will be effected every yearby way of Study Guidelines, if required.

SECTION A: INCOME TAX LAW (50 MARKS)

Objective

1. To develop an understanding of the provisions of income-tax
2. To acquire the ability to apply such provisions to solve problems and address application

Contents

1. Basic Concepts:

• Income-tax law: An introduction
• Significant concepts in income-tax law, including person, assessee, previous year, assessmentyear, income, agricultural income
• Basis of Charge
• Procedure for computation of total income and tax payable in case of individuals

2. Residential status and scope of total income:

• Residential status
• Scope of total income

3. Heads of income and the provisions governing computation of income under different heads:

• Salaries
• Income from house property
• Profits and gains of business or professionCapital gains
• Income from other sources

4. Provisions relating to clubbing of income, set-off or carry forward and set-off of losses, deductions fromgross total
5. Advance Tax, Tax deduction at source and tax collection at
6. Provisions for filing return of income and self-assessment.
7. Computation of total income and income-tax payable by an individual under the alternative taxregimes under the Income-tax Act, 1961 to optimise tax

Note: If any new legislation(s) are enacted in place of an existing legislation(s), the syllabus will accordinglyinclude the corresponding provisions of such new legislation(s) in place of the existing legislation(s) with effect from the date to be notified by the Institute. Similarly, if any existing legislation(s) on income tax lawceases to be in force, the syllabus will accordingly exclude such legislation(s) with effect from the date to benotified by the Institute.

Further, the specific inclusion(s)/exclusion(s) in any topic covered in the syllabus will be effected by way ofStudy Guidelines every year, if required. Specific inclusions/exclusions in a topic may also arise due to additions/deletions made every year by the Annual Finance Act.

SECTION B: GOODS AND SERVICES TAX (GST)(50 MARKS)

Objective

1. To develop an understanding of the provisions of goods and services tax
2. To acquire the ability to apply such provisions to address/ solve issues in moderately

Contents

1. GST Laws: An introduction including Constitutional

2. Levy and collection of CGST and IGST:

• • Application of CGST/IGST law
  • Concept of supply including composite and mixed supplies
  • Charge of tax including reverse charge
  • Exemption from tax
  • Composition levy

3. Basic concepts of:

• • Classification
  • Place of supply
  • Time of supply
  • Value of supply
  • Input tax credit

4. Computation of GST

5. Registration

6. Tax invoice; Credit and Debit Notes; Electronic way

7. Accounts and Records

8. Returns

9. Payment of tax

Note: If any new legislation(s) is enacted in place of an existing legislation(s), the syllabus will accordingly include the corresponding provisions of such new legislation(s) in place of the existing legislation(s) with effect from the date to be notified by the Institute. Similarly, if any existing legislation ceases to have effect, the syllabus will accordingly exclude such legislation with effect from the date to be notified by the Institute. Students shall not be examined with reference to any particular State GST Law.

Consequential/ corresponding amendments made in the provisions of the Goods and Services Tax laws covered in the syllabus of this paper which arise out of the amendments made in the provisions not coveredin the syllabus will not form part of the syllabus. Further, the specific inclusion(s)/ exclusion(s) in the varioustopics covered in the syllabus will be effected every year by way of Study Guidelines. The specific inclusion(s)/ exclusion(s)may also arise due to additions/ deletions every year by the annual Finance Act.

Objective

1. To develop an understanding of the basic concepts and applications to establish the cost associated with the production of products and provision of  services and apply the same to determine
2. To develop an understanding of cost accounting
3. To acquire the ability to apply information for cost ascertainment, planning, control and
4. To apply costing methods to determine the costs for different e To apply appropriate techniques to support short term decisions.

Contents

1. Overview of Cost and Management Accounting:

(i)  Introduction to Cost and Management Accounting:

1. 1. Objectives and Scope of Cost and Management
   2. The users of Cost and Management accounting information, Functions of
   3. Role of cost accounting department in an organisation and its relation with
   4. Installation of Costing
   5. Relationship of     Cost      Accounting,      Financial     Accounting, Management Accounting andFinancial
   6. Cost terms and
   7. Cost Reduction and Cost Control
   8. Elements of Costs.
   9.  Cost behavior pattern, Separating the components of fixed, variable, semi-variable and stepcosts.

   10. Methods of Costing, Techniques of Costing.

   11. Digital Costing.

(ii) Elements of Cost and preparation of Cost Sheets:

1. 1. Functional classification and ascertainment of
   2. Preparation of Cost Sheets for Manufacturing sector and for Service

2.  Ascertainment of Cost and Cost Accounting System:

(i) Material Cost:

1. 1. Introduction to procurement Valuation of receipts, issue and closing stock of Material, Stock verification.
   2. Material requirement analysis through digital costing including Government e-Marketplace (GeM). Introduction to  Costing through Enterprise Resource Planning (ERP).  Process  of  tender and
   3. Inventory control:
      • Techniques of fixing level of stocks- minimum, maximum, re-order point, safety stock, determination of optimum stock
      • Determination of Optimum Order quantity-  Economic Order Quantity (EOQ).
      • Techniques of Inventory control- ABC Analysis, Fast, Slow moving and Non moving (FSN), High, Medium, Low (HML), Vital, Essential, Desirable (VED), Just-in-Time (JIT)- Stock taking and perpetual inventory system, use of inventory control ratios, Digital Inventory
   4. Treatment of Normal/Abnormal Losses r.t. waste,  scrap, spoilage, defective, obsolescence.

(ii) Employee Cost:

Introduction to Attendance and Payroll

Elements of wages- Basic pay, Dearness Allowance, Overtime, Bonus, Holiday and leavewages, Allowances and

Employee Cost

Employee Turnover-  Methods   of   calculating   employee turnover, causes of employee turnover, effects of employee

Remuneration systems and incentive schemes- Premium Bonus Method (Halsey Plan andRowan Plan).

(iii) Direct Expenses:

Identification of direct expenses with the  main product or   service   and its treatment.

(iv)  Overheads:

Functional analysis- Factory, Administration, Selling, Distribution, Research and

Behavioral analysis- Fixed, Variable and Semi-Variable.

Allocation and Apportionment of overheads using Absorption Costing

Factory Overheads- Primary and secondary

Administration Overheads- Method of allocation to   cost centres or

Selling & Distribution Overheads- Analysis and absorption of the expenses in products/ customers, impact of marketing strategies, cost effectiveness of various methods of sales

Treatment of Research and development cost in cost

(v) Concepts of Activity Based Costing (ABC).

Integration of cost and financial data:

1. 1. Recording of financial data and its
   2. Introduction to Non-integrated and  Integrated  Accounting
   3. Items included in cost accounts only but financial accounts and vice
   4. Reconciliation of profit as per Cost and Financial Accounts (under Non-Integrated AccountingSystem).

3.  Methods of Costing

(i) Single Output/ Unit Costing.

(ii) Job Costing:

Job cost cards and databases, collecting direct costs of each job, attributing overheads to jobs, Application of job costing.

(iii) Batch Costing:

Determination of optimum batch quantity, Ascertainment of cost for a batch, Preparation ofbatch cost sheet, Treatment of spoiled and defective work.

(iv) Process/ Operation Costing:

Process cost recording, Process loss, Abnormal gains and losses, Equivalent units ofproduction, Inter-process profit, Valuation of work in

Joint Products-Apportionment of joint costs, Methods of apportioning joint cost over

By-Products-Methods of apportioning joint costs over by- products, treatment of By-Productcost.

(v) Costing of Service Sectors:

Determination of Costs and Prices of services.

4. Cost Control and Analysis:

(i) Standard Costing:

1. 1. 1. Setting up of Standards, Types of Standards, Standard Costing as method of
      2. Calculation and Reconciliation of Material Cost, Labour cost, Variable Overhead,

(ii) Marginal Costing:

1. 1. Basic concepts of marginal costing, Contribution margin, Break- even analysis, Break–even and profit volume charts, Contribution to sales ratio, Margin of Safety, Angle of Incidence, Cost-Volume- Profit Analysis (CVP).
   2. Determination of Cost of a product/ service  under  marginal costing method, determination of cost of finished goods, work-in-
   3. Comparison of Marginal costing with absorption costing method- Reconciliation of profit under both the
   4. Short term decision making:
      • Make or buy decision
      • Discontinuation decision
      • Multiproduct break-even  analysis
      • Limiting factor (key factor)

(iii) Budget and Budgetary Control:

1. 1. Meaning of Budget, Essentials of Budget, Budget Manual, Budget setting process, Preparation of Budget and  monitoring
   2. The use of budget in planning and
   3. Flexible budget, Preparation of Functional budget for operating and non-operating functionsd Cash budget, Master
   4. Introduction to Principal/ Key budget factor, Zero  Based Budgeting (ZBB), Performancebudget, Control ratios and Budget
   5. Budgets and
   6. Feedback and Feed forward controlling in

Objective

1. To develop an understanding of the concepts in auditing and of the generally accepted auditing procedures, techniques and skills and acquire the ability to apply the same in audit and attestation
2. To understand and apply the concept of ethics while performing

Contents

1. Nature, Objective and Scope of Audit:

Auditing Concepts:

Origin of Auditing, Meaning of Audit, Need for Audit (Benefits of Audit), Objective of the Audit, Scope of Audit, External Audit engagements, Qualities of Auditor.

– Inherent Limitations of an Audit; Relationship of auditing with other disciplines.

(SA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance withStandards on Auditing).

2. Audit Strategy, Audit Planning and Audit Program:

(SA 300 Planning an Audit of Financial statements)

• Auditor’s responsibility to plan an audit of financial Benefits of audit planning.
• Planning is a continual and iterative
• Discussion of elements of planning with the entity’s Involvement of Key Engagement Team Members in planning the audit. Preliminary engagement activities.
• The auditor’s consideration of client continuance and ethical Planning activities.
• Establishing an  overall   audit   strategy-   Assistance   for   the   

Development of audit plan.

• Documenting the overall audit strategy and audit plan; Audit
• Development of Audit Plan and

3. Risk Assessment and Internal Control:

• Audit
• Risk of Material Misstatement, Inherent Risk and Control Risk, Detection
• Sampling and Non-Sampling
• Concept of Materiality, Materiality in Planning and Performing an
• Auditor’s responsibility to apply the concept of
• Auditor’s determination of materiality is a matter of professional Materiality and AuditRisk.
• Application of   materiality   in   planning   and   performing   the   Concept of Performance materiality.

• Determining materiality and performance materiality when planning the
• Use of Benchmarks in determining materiality for the financial statements as a whole. Materialitylevel or levels for particular classes of transactions, account balances or
• Revision in materiality as the audit Documenting the Materiality.

(SA 320 Materiality in Planning and Performing an Audit).

• Identifying and Assessing the Risk of Material Misstatement, Risk Assessment
• Understanding the entity and its environment; Internal
• Documenting the
• Evaluation of internal control
• Testing of Internal control; Internal Control and IT Environment (SA 315 Identifying and Assessing the Risks of Material Misstatement Through Understanding the Entity and Its Environment).

Digital Audit:

Key features, Impact of IT related Risks, Impact on Controls, Internal Financial Controls as per Regulatory requirements, Types of Controls, Audit approach, Understanding and documenting Automated environment, Testing methods, data analytics for audit, assessing and reporting audit findings.

Overview and Introduction: The Auditor’s Responses to Assessed Risks-SA 330.

4. Audit Evidence:

• Meaning of Audit
• Relevance and Reliability of audit evidence; Sufficient appropriate audit evidence, Meaning
• Assertions contained in the Financial Source of audit evidence.
• Test of
• Substantive Procedures- Test of details and Substantive analytical procedures, Audit procedures forobtaining audit
• Evaluation of Audit Evidence (SA 500 Audit Evidence), Audit (Using the work of Internal Auditors – SA 610)
• Internal audit
• External Auditor’s Responsibility for the audit, Evaluating the  internal audit
• Basics of Internal Financial Control and reporting   Distinction between InternalFinancial Control and Internal Control over Financial Reporting.
• Audit Sampling: (SA 530 Audit Sampling). Meaning of Audit
• Designing an audit sample; Types of sampling (Approaches to Sampling).
• Sample Size and selection of items for testing; Sample selection
• Obtaining evidence of existence of inventory; Audit procedure to identify litigation & claims, obtaining evidence regarding the presentation and disclosure of segment information (SA 501 Audit Evidence – Specific Considerations for Selected Items); External confirmation Management’s refusal to allow the auditor to send a confirmation request; Negative Confirmations(SA 505 External Confirmations); Audit evidence about opening balances; Accounting policies relating to  opening balances; Reporting with regard to opening balances (SA 510 Initial Audit Engagements-Opening Balances).
• Meaning of Related Party; Nature of Related Party Relationships & Transactions; Understanding the Entity’s Related Party Relationships & Transactions (SA 550 Related Parties).
• Analytical
• Meaning, nature, purpose and timing of analytical  procedures; Substantive analytical
• Designing and performing analytical procedures prior to
• Investigating the results of analytical procedures (SA 520 Analytical Procedures).

5. Audit of Items of Financial Statements:

• Audit of sale of Products and Services; Audit of Interest Income, Rental Income, Dividend Income, Netgain/loss on sale of Investments
• Audit of Purchases, Employee benefits expenses, Depreciation, Interest expense, Expenditure  on  Power & Fuel, Rent, Repair to building, Repair to Machinery, Insurance, Taxes, Travelling Expenses, Miscellaneous Expenses etc.
• Audit of Share Capital, Reserve & Surplus, Long Term Borrowings, Trade Payables, Provisions, ShortTerm Borrowings & Other Current
• Audit of Land, Buildings, Plant & Equipment, Furniture & Fixtures, Vehicles, Office Equipment, Goodwill, Brand/Trademarks, Computer Software
• Audit of Loan & Advances, Trade Receivable, Inventories, Cash & Cash Equivalent, Other Audit of Contingent Liabilities.

(The list of items is illustrative only)

6. Audit Documentation

• Concept of Audit
• Nature & Purpose of Audit Documentation; Form, Content & Extent of Audit Completion Memorandum.
• Ownership and custody of Audit Documentation (SA 230 Audit Documentation).

7. Completion and Review

• Meaning of Subsequent Events;
• Auditor’s obligations in different situations of subsequent
• Procedures for subsequent (SA 560 Subsequent Events).
• Responsibilities of    the    Auditor    with    regard    to    Going    Concern Assumption; Objectives of the Auditorregarding Going
• Events or Conditions that may cast doubt about Going Concern
• Audit Procedures when events or conditions are  identified  (SA  570 Going Concern). Overview and
• Introduction of Evaluations of Misstatements identified during the audit (SA 450).
• Written Representations as Audit
• Objective of Auditor regarding Written
• Management from whom Written Representations may be
• Written Representations about Management’s Responsibilities (SA 580 Written Representations)
• Overview and Introduction of SA 260: Communication with Those Charged with
• Overview and Introduction of SA 265 Communicating Deficiencies in Internal Control to ThoseCharged with Governance and

8. Audit Report

• Forming an opinion on the Financial
• Auditor’s Report- basic elements (SA 700 Forming an Opinion and Reporting on FinancialStatements).
• Communicating key Audit Matters in the Independent Auditor’s Report (SA 701) Types of Modified Opinion, Circumstances When a Modification to the Auditor’s Opinion is Required, Qualified, Adverse Disclaimer of Opinion (SA 705 Modification to the Opinion in  the  Independent Auditor’s Report).
• SA 706 Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent Auditor’sReport.
• Nature of Comparative
• Corresponding Figure; Comparative Financial Statements (SA 710 Comparative Information – Corresponding Figures and Comparative Financial Statements).
• Branch audit; Joint audit; Reporting requirements under the Companies Act, 2013 including

9.  Special Features of Audit of Different Type of Entities

Appointment of Auditor, Audit Procedure and Audit Report in respect of different Category of Entities: Government; Local bodies; Not-for-profit organizations; Trust and Societies, Partnership Firms, Audit of different type of undertakings, i.e., Educational Institutions, Hotels, Clubs, Hospitals, etc., Basics of Limited Liability Partnerships (LLPs) Audit and Co-operative Societies Audit.

10. Audit of Banks

Understanding of accounting system in Banks, Audit Approach, Audit of Revenue items, SpecialConsideration in Bank Audit with emphasis on Advances and NPAs.

11. Ethics and Terms of Audit Engagements

• Meaning of
• Ethics is a State of Mind, Need for Professional
• Principles based approach v Rules based approach (Ethical or Legal).
• The fundamental principles of Professional Ethics: Integrity; Objectivity; Professional Competence and Due care; Confidentiality; Professional
• Independence of
• Threats to Independence: Self Interest threats; Self Review threats; Advocacy threats; Familiaritythreats; Intimidation
• Safeguards to Independence; Professional Skepticism, Terms of Audit Engagements Preconditionsfor an audit; Audit Engagement.
• Agreement on Audit Engagement
• Terms of Engagement in Recurring Audits (SA 210 Agreeing the Terms of Audit Engagements).
• Overview and Introduction of SQC 1 Quality Control for Firms that Perform Audits and Reviews ofHistorical Financial Information and Other Assurance and Related Services
• Overview and Introduction of SA 220 – Quality Control for an Audit of Financial Statements).

Notes

• The specific inclusions/exclusions in any topic covered in the syllabus will be effected by way of Study
• If any new legislations / Standards on Auditing / Guidance Notes / Statements are enacted in place of theexisting legislations / Standards on Auditing / Guidance Notes / Statements, the syllabus will accordingly include the corresponding provisions of such new legislations / Standards on Auditing / Guidance Notes / Statements, with effect from the date to be notified by the Institute. The changes in this regard would alsoform part of Study Guidelines.

SECTION A : FINANCIAL MANAGEMENT (50 MARKS)

Objective

1. To develop an understanding of various aspects of Financial Management and acquire the ability toapply such knowledge in decision-making.
2. To understand various finance functions like financing decision, investment decision, dividend
3. To develop an understanding of working capital management and its component.

Contents

1. Financial Management and Financial Analysis:

(i) Introduction to Financial Management Function:

1. 1. Objective and scope of financial
   2. Profit Maximisation, Wealth Maximisation  and Value
   3. Role of Financial Manager and Financial Controller.
   4. Financial management environment.
   5. Functions of finance executives in an organization. 
   6. Financial distress and insolvency.

(ii) Financial Analysis through Ratios:

1. 1. Users of the financial
   2. Sources of financial data for
   3. Calculation and Interpretation of d Limitations of ratio analysis.

2.  Financing Decisions and Cost of Capital:

(i) Sources of Finance:

• • Different Sources of Finance, Characteristics of different types of long-term debt and equityfinance, Method of raising long term
  • Different Sources of short-term
  • Contemporary sources of funding- P2P lending, Equity funding, Crowd funding, Start-upfunding,
  • Internal fund as a source of finance.
  • International sources of finance.
  • Other sources of finance – Lease Financing, Sale and lease back, Convertible debt, Venturecapital, Grants

(ii) Cost of Capital:

• • Significance of cost of capital.
  • Factors of cost of capital.
  • Measurement of costs of individual components of capital.
  • Weighted average cost of capital (WACC).
  • Marginal cost of capital.

(iii) Capital Structure Decisions:

• • Significance  of capital structure.
  • Determinants of capital structure.
  • Capital structure planning and designing.
  • Designing of optimum capital structure.
  • Theories of Capital Structure and value of  the  firm-relevancy and Irrelevancy of of capital structure.
  • EBIT- EPS Analysis, Breakeven- EBIT Analysis. g Under/ Over

(iv) Leverages:

• • Types of Leverages- Operating, Financial and Combined.
  • Analysis of leverages.

3. Capital Investment and Dividend Decisions:

(i) Capital Investment Decisions:

1. 1. 1. Objective of capital investment  decisions.
      2. Methods of Investment appraisal:
         • Payback period, Discounted payback
         • Accounting Rate of Return (ARR).
         • Net Present Value (NPV) – The meaning of NPV, Strengths and limitations of NPV method, The working capital adjustment in NPV analysis, Capital rationing, Equivalent Annual
         • Internal Rate of Return (IRR)- Limitations of the IRR method, Multiple IRRs.
         • Modified Internal Rate of Return (MIRR)- Definition and explanation of MIRR, Process for calculating MIRR, Strengths of the MIRR
         • Profitability Index.

(ii) Dividend Decisions:

• • Basics of dividends.
  • Cash dividend, stock dividend/ bonus share,  stock-splits,  share buy back.
  • Determinants of dividend.
  • Relevancy and Irrelevancy of Dividend Policies- Traditional Approach, Walter’s model,Gordon’s model, Modigliani and Miller (MM).

4. Management of Working Capital:

• The management of working capital- Liquidity and
• The Working capital  financing  decisions-Primary  and  Secondary Sources of
• The Working Capital Cycle (Operating Cycle), Effectiveness of Working Capital based on itsoperating and cash conversion
• Assessment of working capital
• Management of Accounts Receivables (Debtors). f Factoring and
• Credit Management:
  • Credit granting
  • Monitoring accounts receivables. 
  • Debt collection
• Management of Accounts Payables (Creditors). i Management of Cash, Treasury
• Banking norms of working capital finance.

SECTION B : STRATEGIC MANAGEMENT (50 MARKS)

Objective

To develop an understanding of strategic management concepts and techniques and acquire the ability toapply the same in business situations.

Contents

1. Introduction to Strategic Management:

• Meaning and Nature of Strategic
• Importance and Limitations of Strategic
• Strategic Intent – Vision, Mission, Goals and
• Strategic Levels in Organizations (Network, Corporate, Business and Functional).

2. Strategic Analysis: External Environment:

• International and Macro Environment: PESTLE
• Defining the industry for analysis (Value Chain, PLC).
• Porters Five Forces – Industry environment
• Understanding customers and
• Competition in the

3.  Strategic Analysis: Internal Environment:

• Understanding key  stakeholders  (Mendelow’s  Model).
• Strategic drivers (Industry & markets, Customers, Channels, Product & Services, CompetitiveAdvantage).
• The role of resources and
• Combining external and internal analysis (SWOT Analysis).
• Gaining competitive advantage (Michael Porter’s Generic Strategies).

4. Strategic Choices:

• Strategic Choices: Concentric, Conglomerate, Market Development, Product Development, Innovation, Horizontal integration, vertical integration, Turnaround, Divesture,
• How to Develop Strategic Options:
  • Ansoff’s Matrix
  • ADL Matrix
  • BCG Matrix
  • GE Matrix

5. Strategy Implementation and Evaluation:

• Implementation: Formulation Implementation Matrix, Linkages and Issues.
• Strategic Change through Digital
• Organisation Structure (hard) and Culture (soft).
• Strategic Leadership
• Strategic Control
• Strategic Performance