www.caspot.com brings you the exclusive post of Preparation Tips For SFM Or MAFA For CA Final
Importance of Strategic Financial Management [SFM] paper
If you look at it carefully, you will find
that Strategic Financial Management [SFM] is a fusion of strategic
Management and financial Management as it has Capital Budgeting and
Portfolio Management topic. Honestly this subject has acquired an
important implication nowadays due to recent cross border flow of
capital. SFM is all about applying the strategic knowledge and
techniques of financial Management to the planning, operating of an
organization along with monitoring the finance function. Good knowledge
and understanding of SFM opens new opportunities for budding Chartered
Accountants keeping in view its International approach. CA Final SFM
provides the concepts theories and techniques related to SFM and aims to
develop the student ability to understanding the different concepts and
their application in the real life situations.
Preparation for Strategic Financial Management [SFM]
I have realized that many students
consider SFM as a tuff subject to handle and score, but honestly this is
not the case. Just like costing, with proper and conceptual study, SFM
can be managed easily with good score in exam. Further some time we got
real tuff paper in hand to solve which results into low marks. But that
does not mean that our preparation was not good and we are weak in that
paper. It happens with everyone so at that time just have faith in your
preparation method and avoid drastic changes in your preparation method.
Tips to prepare:
1. First of all understand that SFM is not
a very tuff subject and with proper guidance and planning it can be
handled easily. Some students might find it very interesting but at the
same time this is not among favourite subject for other students. Here I
must say once you start working over this subject, this would become
your favourite subject and you’ll be able to score great marks in SFM.
You know everything is possible in life.
2. Reference Book for SFM:
It is important to use right reference book for the subject from the
very beginning. Few options are available in this regard which are as
follows:
a. A.N. Sridhar or V. Pattabi Ram
b. JB Gupta along with DVD lectures
c. S.D. Bala along with Paduka (for practicing the numerical questions)
My personal choice would be the book of JB
Gupta from Taxmann publication. This book contains theoretical and
practical question of past 42 CA Final exams (including May 2014) along
with 700 fully solved practical problems in the book. 275 fully solved
practical problems in accompanying Workbook on CD.
3. ICAI Study Material is must:
As a general understanding ICAI study material is a must for
preparation. Chapter in the study of SFM has been organized to provide a
logical sequence to facilitate easy understanding. ICAI Study Material
contains good number of illustrations in each chapter to help student.
For a quick grasp of the subject during the examination days a summery
has also been inserted in the end of each chapter.
ALSO SEE FULL CA COURSE TIPS AND SUGGESTIONS :::
- FOR FINANCIAL REPORTING : http://goo.gl/4fcDpE
- FOR SFM : http://goo.gl/X2AwGE
- FOR ADVANCED AUDITING : http://goo.gl/6Ug9Ex
- FOR LAW : http://goo.gl/Xp2tcv
- FOR AMA : http://goo.gl/E708AU
- FOR ISCA : http://goo.gl/f2tdsU
- FOR DIRECT TAX : http://goo.gl/WosGwp
- FOR INDIRECT TAX : http://goo.gl/z1MU2V
4. Conceptual Understanding and Practice is must:
In numerical subject like SFM Conceptual study and understanding is
must. Without Conceptual clarity it would be tuff for you to perform
well in SFM subject. With Conceptual understanding one can easily
understand the practical questions and solve them easily. To ensure
proper grip on SFM subject, its formulas etc,, it is important and
necessary to practice maximum number of practical questions. I would
suggest you to solve numerical questions given in ICAI study material,
Questions asked in previous exams, revision test papers, practice
manuals. As we all know practice makes a man perfect. Practicing good
number of questions will give you the good knowledge in SFM and help
you to maintain good speed during examination time.
5. In order to handle SFM it is advisable
for CA final students to practice ample number of practical problems. To
update with the latest changes in the finance sector, it is advisable
to refer monthly journal of ICAI “The Chartered Accountant” and the
student newsletter published by the board of studies along with other
Corporate Law Journals.
6. Broadly speaking syllabus of SFM is
divided into 2 categories. Under First category we may have Capital
Budgeting, Foreign Exchange Risk Management, Portfolio Management and
Derivatives. Under Second category we may have Bond Valuation, Mutual
Fund, Merger and Acquisitions and Dividend Policy. Chapters under first
category are the chapters which carry a good weightage in every attempt.
Now it depends upon Individual choice whether to start from first
category or second category.
7. As per my opinion one should start from
comparatively small and easy topic just to develop interest in the
subject. So instead of starting with heavy topic start with a lighter
and very interesting topic i.e. Bond Valuation and Mergers and
acquisition. After that you may finish the topic of Portfolio
Management. It is an important topic and emphasis should be given to
portfolio management formulas as they are of utmost important to ensure
grip over this chapter. Accordingly you may pick the chapter of Mutual
Fund, Foreign Exchange Risk Management one by one as per your own
strategy.
8. Capital Budgeting is another important
chapter in SFM. Leasing is one of the important topics of Capital
Budgeting. You may easily find a question on leasing in exam. In this
chapter try to understand the concept and practice ample number of
practical questions to learn and understand the formulas. Try to solve
more and more number of practical questions asked in previous attempts.
9. I would also suggest you one strategy
that a heavy topic should be followed by a small topic. In other words
after completing a heavy chapter, start a small and easy chapter. Just
to give you an example after completing the chapter of Foreign Exchange
Risk Management don’t start another heavy chapter like Capital Budgeting
or Derivatives. This will help you to retain concepts for a longer
period and avoid mixing up of concepts.
10. Revision Strategy: A
good Revision strategy is also important in a subject like SFM. In case
of poor revision, it would be difficult for you to recall SFM concepts
and formulas in exam hall. If you fail to revise, your SFM paper would
be a complete disaster. So beware about the same. Hence after
completing all the chapters revise all of them one by one in the same
order in which you have made first reading.
11. Prepare Theory topics:
Theory is asked in SFM paper so what is the point of not giving
importance to SFM theory. In other words theory is also important
content of this SFM subject. Prepare a list of frequently asked theory
questions in previous examinations and prepare them thoroughly. You may
prepare short notes of SFM in your own language and revise them
regularly.
12. Other notable points: Please take note of the below mentioned relevant point regarding preparation of Strategic Financial management subject [SFM]:
a. It is really important to classify less
relevant portion of your study. I would suggest you to refer Scanner to
figure out the portion of SFM subject which is least important from
exam point of view. This will help you to save time and energy.
b. Lack of good presentation is one of the
major drawbacks for most of the CA students. So workout on your writing
and presentation skills.
c. You are advised to practice such
numerical questions which cover the technical points, formulas and
adjustments of entire chapters.
d. Try and make an effort to complete your
paper 100%. In other words attempt full paper of 100 marks to fetch
some extra marks as marking is done on step basis.
e. Keep a query diary with you during
study time and note your queries in this diary and resolve them same day
or next day. Do not keep your query unresolved. Don’t forget to mention
answer of your query in the query diary.
f. Prior understanding of Question paper
pattern is very important. So before going to exam refer last attempt
question paper to understand exam pattern properly. Further the
presentation is very important in SFM subject so you should avoid
unnecessary cuttings and corrections.
g. Before answering any question you need
to make a rough solution in your mind and then go accordingly. No need
to make hurry in papers like SFM and costing as one mistake may spoil
your entire efforts. In SFM you won’t get amendments very frequently, so
no need to worry about amendments etc.
I sincerely believe that the suggestions
mentioned above would be of some help in SFM preparation. Remember SFM
is a different subject and with right approach you can fetch great marks
in SFM as it is a high scoring subject.
CREDITS - ANKUR GARG
CREDITS - ANKUR GARG
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