SYLLABUS

SET A

PAPER : CORPORATE AND ECONOMIC LAWS (100 MARKS)

PART I : CORPORATE LAWS (70 MARKS)

SECTION A : COMPANY LAW (50 MARKS)

Objective
To acquire the ability to analyse, interpret and apply the provisions of the Company Law in practical
situations.

Contents
The Companies Act, 2013 and Rules framed thereunder in its entirety with specific reference to section 149
onwards:

1 Appointment and Qualifications of Directors

2 Appointment and Remuneration of Managerial Personnel

3 Meetings of Board and its Powers

4 Inspection, Inquiry and Investigation

5 Compromises, Arrangements and Amalgamations

6 Prevention of Oppression and Mismanagement

7 Winding Up

8 Miscellaneous Provisions

9 Adjudication, Special Courts, National Company Law Tribunal

10 e-Filing

SECTION B : SECURITIES LAWS (20 MARKS)

Objective
To acquire the ability to analyse the significant provisions of the SEBI Act.

Contents
Overview of the Securities Exchange Board of India Act, 1992, and references of following Regulations:

1 SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015

2 SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018

3 SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 2011

4 SEBI (Prohibition of Insider Trading) Regulations, 2015

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PART II : ECONOMIC LAWS (30 MARKS)

Objective
To acquire the ability to analyse the significant provisions of select Economic Laws.

Contents
1 The Foreign Exchange Management Act, 1999 and significant Rules and Regulations: Introduction,
Broad structure of FEMA, Definition, Regulation and Management of Foreign Exchange,
Contraventions and Penalties in brief, Miscellaneous Provisions.

2 The Foreign Contribution Regulation Act, 2010 and its Regulation: Definitions, Regulation of Foreign
Contribution and Miscellaneous Provisions.

3 The Insolvency and Bankruptcy Code, 2016 and significant Rules and Regulations: Significant
concepts covered uptill section 33 of the Code.

Note: If new legislations are enacted in place of the existing legislations, the syllabus would include the
corresponding provisions of such new legislations with effect from a date notified by the Institute.

The specific inclusions/exclusions in the various topics covered in the syllabus will be affected every year by
way of study guidelines, if any.

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SYLLABUS
SET B

PAPER : STRATEGIC COST & PERFORMANCE (100 MARKS)

MANAGEMENT

Objective

a To acquire the ability to apply various cost management techniques for planning and controlling
performance in order to set, monitor and control strategic objectives.

b To develop skills of analysis, synthesis and evaluation in cost management to address challenges and
issues which might affect or influence the management of performance within organisations.

PART A : STRATEGIC COST MANAGEMENT

1 An Introduction to Strategic Cost Management

i Managing Cost Strategically- Strategic Cost Management, Limitations of Traditional Cost
Management, Traditional vs. Strategic Cost Management

ii Organisational Context- Gaining Competitive Advantage, Value Proposition, Osterwalder's

Business Model Canvas

iii External Environment Context- Industry Profitability, Basis of Competition, Industry Key Success
Factors, Understanding Customers and Markets

iv Information Technology the Strategic Context- IS/IT and Porter’s Five Forces, IT/IS and the Value
Chain

v The Role of Management Accountant as a Leader- Communication, Decision Making, Business

Ethics

2 Modern Business Environment

i Introduction/ Characteristics of the Modern Business Environment

ii Quality to Business Excellence- Cost of Quality, Total Quality Management

iii Supply Chain Management (SCM)

iv Gain Sharing Arrangements

v Downsizing, Outsourcing and Offshoring

3 Lean System and Innovation

i Introduction to Lean System
a Just-in-Time (JIT)
b Kaizen Costing
c 5S
d Total Productive Maintenance (TPM)
e Cellular Manufacturing/ One-Piece Flow Production Systems
f Six Sigma (SS)
ii Introduction to Process Innovation

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 4 Specialist Cost Management Techniques
i Cost Control/ Waste Control, Cost Reduction

ii Target Costing

iii Throughput Accounting and Theory of Constraints

iv Life Cycle Costing

v Environment Management Accounting

5 Management of Cost Strategically for Emerging Business Models

i Changing Business Environment- Digital Technologies, Business Ecosystems, Hyper Competition,
Transformation and Disruption, Advanced Manufacturing, Lean Start-up, Agile Organisations,
Start-ups vs Incumbents, Intrapreneurship, Innovation Hubs and Incubators, Supply Chain
Partnerships

ii Business Models
a Hyper disruptive Business Models
b Models relevant to Sustainability
c Models relevant to Emerging National Markets

iii Strategic Responses to New Business Models

6 Strategic Revenue Management

i Decision Making Techniques
a CVP Analysis
b Relevant Cost Concepts

ii Pricing Decisions
a Theory & Principles of Product Pricing
b Pricing – New Product, Finished Products, Pricing of Services, Emerging Business Models
c Sensitivity Analysis in Pricing Decisions
d Pricing Decision under Special Circumstances
e Ethical and Non-financial Considerations

iii Pricing Strategies

a Pricing Strategies
b Kano’s performance attributes

7 Strategic Profit Management

i Operating Profit Analysis

ii Activity Based Profitability Analysis, Activity Based Management (ABM), Activity Based Budgeting
(ABB)

iii Pareto Analysis

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PART B : STRATEGIC PERFORMANCE MANAGEMENT

1 An Introduction to Strategic Performance Management

i Performance Management and Its link to Strategy

ii Role of Performance Management in Business Integration using Models such as Value Chain and
McKinsey’s 7S

iii Influence of Organisation's Structure, Culture and Strategy on Performance Measurement

iv Strategic Performance Issues in Complex Business Structures

v Behavioural Aspects

vi Predicting and Preventing Corporate Failure

2 Strategic Performance Measures in Private Sector

i Critical Success Factors and Link to Performance Measurement, Key Performance Indicators (KPI)

ii Financial Measures- Gross Profit, ROCE, ROI, EPS, RI, NPV, EVA etc.

iii Non-Financial Performance Measures- Linkage between performance measures (Balanced

Scorecard); Link Strategy, Operations and Performance (Performance Pyramid); Link between
achievement of the corporate strategy and the management of human resources (The Building
Block Model); Triple Bottom Line

iv The role of quality in management information and performance measurement systems

3 Strategic Performance Measures in the Not-for-Profit Organisations

i Diversity in objectives, difficulties in measuring outputs

ii ‘value for money’ service provision as a measure of performance in not-for-profit organisations

and the public sector

iii Adapted Balanced Scorecard

4 Preparation of Performance Reports

5 Divisional Transfer Pricing

i Meaning, Purpose & Principles of Transfer Pricing

ii Methods of Transfer Pricing

iii The Behavioural Consequences arising from Divisional Structures

iv International Transfer Pricing

6 Standard Costing
i Analysis of Advanced Variances

ii Integration of Standard Costing with Marginal Cost Accounting

iii Reconciliation of Profit

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 iv Variance Investigation Techniques, Interpretation of Variances, Possible Interdependence
Between Variances and Reporting

v Behavioural Aspects of Standard Costing, Limitation of Standard Costing (including its use in the
contemporary business environment)

PART C : CASE STUDY

1 Case Study
i Covering Course Concepts

ii Combination of MCQs and extended response questions

General Note-
i The Strategic Cost & Performance Management exam builds upon the skills and knowledge
examined in the “Strategic Management” and “Cost and Management Accounting” exams. At this
stage candidates will be expected to demonstrate an integrated knowledge of the subject and
an ability to relate their technical understanding of the subject to issues of strategic and
operational importance to the organisation.

ii Basic Applications of the following Quantitative Techniques are required to be studied for linkage
to the course concept: (a) Linear Programming (b) Learning Curve/Experience Curve.

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SYLLABUS
SET C

PAPER : RISK MANAGEMENT (100 MARKS)

Objective

To gain knowledge and acquire an insight into the spectrum of risks faced by businesses and to develop an
understanding of the techniques of managing risks in practical case scenarios.

Contents

1 Introduction & Overview

i Introduction to Risk & Uncertainty

ii Classifications & Types of Risks

iii Importance & Objectives

iv Overview of Mitigation & Controls

v Opportunities in RM for CAs

2 Risk Strategy & Governance

i Risk Management Frameworks

ii Implementation of Risk Management Policies & Processes

iii Enterprise Risk and linkage to Business

iv Governance & Ethical dimensions

v Legal, Regulatory & Compliance

3 Role of Risk Stakeholders

i Board Oversight

ii Role of CEO, Management

iii Role of Risk Managers, Owners

iv Role of Auditors (Statutory/Internal)

4 Risk Assessment
i Risk Identification

ii Risk Evaluation (Impact/Likelihood)

iii Risk Quantification & Ratings

iv RM Quantification Tools

v Risk Prioritization & Heat Matrix

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 5 Risk Response
i Risk Appetite

ii Risk Treatment Techniques

iii Controlling Risk

iv Contingency Planning

6 Risk Monitoring & Reporting

i Information & Communication

ii Automation & Continuous Monitoring

iii Auditing & Evaluating Risk

iv Continuous & Periodic Reporting

7 Strategic Risk
i Business Portfolio Risks

ii Industry/Competition Risks

iii Investments & Funding of Growth

iv Product/Service Risks

8 Operational Risk
i Process level Risk Management

ii Outsourcing Risks & 3rd Party Risk

iii Supply Chain (Sale/ Purchase)

iv Product/Service Quality etc.

9 Emerging Issues in ERM

i External Influences

ii Global Developments

iii Technology & Automation

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PAPER 2 : SUSTAINABLE DEVELOPMENT AND (100 MARKS)
SUSTAINABILITY REPORTING

Objective

a To develop an understanding of the concepts and principles of Sustainable Development.

b To analyse impact of business decisions on Sustainable Development.

c To recognise the emerging trends in sustainability.

Contents

1 Fundamentals of Sustainable Development

i Origin

ii Key terms

iii Need for sustainability

iv Decoding Sustainable Development

v Benefits of integrating sustainability in business

vi State of sustainability in current business planning

2 Sustainability Reporting in India

i National Guidelines on Responsible Business Conduct, 2018 (NGRBC)
- Background and Structure
- Nine Principles of NGRBC
- Linkage with the Sustainable Development Goals (SDGs)

ii Sustainability Reporting Standards Board of ICAI

iii Social Stock Exchange and Institute of Social Auditors of India

3 Business Responsibility and Sustainability Reporting (BRSR) in India

i Business Responsibility and Sustainability Report issued by Committee on Business Responsibility
Reporting of Ministry of Corporate Affairs

ii Securities Exchange Board of India (SEBI) Circular on Business Responsibility and Sustainability
Reporting (BRSR)

iii Business Responsibility and Sustainability Reporting (BRSR) Disclosures

iv Sustainability Reporting Maturity Model (SRMM), ICAI

v Overview of Format of Business Responsibility and Sustainability Reporting (BRSR) Lite

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 4 Global Trends in Sustainability Reporting
i United Nations Sustainable Development Goals (UNSDG) and Reporting
- Objective
- Structure
- The 17 Sustainable Development Goals (SDGs)

ii Overview of Key Global Sustainability Reporting Standards and Frameworks

iii International Sustainability Standards Board (ISSB) and overview of its Sustainability Reporting
Standards

5 Sustainability Assurance
i Overview of Assurance Standards on sustainability

ii Types of Assurance: Limited vs. Reasonable

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PAPER 3 : PUBLIC FINANCE AND (100 MARKS)
GOVERNMENT ACCOUNTING

Objective

To develop an understanding of the economic policies of the Government, Budgets, Fiscal tools, Government
Grants, Public Funds, Rules, Regulations and Accounting Systems pertaining to Government
departments/Institutions of Centre, State and Local-Self Government.

Contents

1 Introduction to Government Functioning: Role and responsibilities of Central, State, Panchayati Raj
Institution and Urban Local Bodies, Union-State-Local Government Fiscal Relations, Fiscal
Federalism.

2 Constitutional Provisions and Related Authorities: 112. Annual financial statement. 113. Procedure in
Parliament with respect to estimates. 114. Appropriation Bills. 115. Supplementary, additional, or excess
grants. 116. Votes on account, votes of credit and exceptional grants. 117. Special provisions as to
financial Bills, 148. Comptroller and Auditor-General of India. 149. Duties and powers of the
Comptroller and Auditor-General. 150. Form of accounts of the Union and of the States 280. Finance
Commission. 281. Recommendations of the Finance Commission. State Finance commission, CGA,
Niti Aayog.

3 Public Finance: Meaning, Importance, Scope and Categories, Fiscal/Budgetary functions, Distinction
between Private and Public Finance, Public Finance & Economic System, Fiscal & Monetary Policies.

4 Public Revenue: Sources of Tax and Non-tax Revenue for Centre, States and Local Government,
Efficiency and Equity in Tax Policy Design, Tax Policy and Tax Administration in India, Tax collection by
Government- Union, State & Local Governments.

5 Budget: Budget Cycle: Planning, Preparation, Execution, Monitoring, how to interpret data from Budget
document, Fiscal Deficit, Primary Deficit, Revenue and Effective Revenue Deficit.

6 Public Debt/Bond: Meaning and Types of Public Debt, Burden of Public Debt, Principles of Public Debt
Management, Debt Profile of the Union Government, Debt servicing, Role of multilateral agencies.

7 Public Expenditure: Canons of Public Expenditure; Classification of Public Expenditure; Wagner’s Law
of Public Expenditure; Public Expenditure as an Instrument of Fiscal Policy: PFM Structure - An
Introduction and IT Intervention.

8 Union & State Accounts: Constitutional Provisions, Structure of various ministries/departments of

Government of India, Controller General of Accounts - Hierarchy and Functions, Structure of
Government Accounts and Flow of Funds, Classification of Government Accounts - Consolidated
Fund, Contingency Fund and Public Accounts, Classification of Government expenditure in India
including introduction to Chart of Accounts, Banking Arrangements, Bankers to the Government.

9 Urban Local Bodies: Introduction - NMAM, National Municipal Asset Valuation Manual, State Municipal
Accounts Manuals/Rules and ASLBs.

10 Standard Internal Control and Risk Management: Internal Control Systems in Government, Internal
Audit, Outcome Budgeting & Reporting, Procurement Control, Asset Controls, Cash Controls, etc., Type
of Audit – Role of CAG & PAC, Contingent liability, and Parliamentary Control, Brief Introduction of IGAS,
IGFRS and IPSAS.

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PAPER 4 : THE INSOLVENCY AND BANKRUPTCY (100 MARKS)
CODE, 2016

Objective

To develop an understanding of the Code and acquire the ability to apply such knowledge in practical
situations.

Contents

The Insolvency and Bankruptcy Code, 2016 covering references of Significant Rules and Regulations:

1 Introduction: Covering Journey of development of Insolvency and Bankruptcy Code and its
importance.

2 Preliminary: Relevant Definitions and application of the Code.

3 Insolvency Resolutions and Liquidation for Corporate Persons: Corporate Insolvency Resolution
Process, Liquidation Process, Pre-Packaged Insolvency Resolution Process, Fast Track Corporate
Insolvency Resolution Process, Voluntary Liquidation of Corporate Persons, Adjudicating Authority for
Corporate Persons.

4 Insolvency Resolution and Bankruptcy for Individuals and Partnership Firms: Preliminary
(Application & Definitions), Fresh Start Process, Insolvency Resolution Process, Bankruptcy Order for
Individuals & Partnership Firms, Administration & Distribution of the Estate of the Bankrupt,
Adjudicating Authority, Offences & Penalties.

5 Regulation of Insolvency Professionals, Agencies and Information Utilities: The Insolvency and
Bankruptcy Board of India, Powers & Functions of the Board, Insolvency Professional Agencies,
Insolvency Professionals, Information Utilities, Inspection & Investigation, Finance, Accounts & Audit.

6 Miscellaneous provisions including Forms 1-6 filed for initiation of CIRP before the NCLT, lists of all
rules and regulations under IBC.

7 Significant Judicial Pronouncements under Insolvency and Bankruptcy Code, 2016.

Note: If new legislations are enacted in place of the existing legislations, the syllabus would include the
corresponding provisions of such new legislations with effect from a date notified by the Institute.

The specific inclusions/exclusions in the various topics covered in the syllabus will be effected every year by
way of Study Guidelines, if required.

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PAPER 5 : INTERNATIONAL TAXATION (100 MARKS)

Objective

To develop an understanding of the basic concepts, principles and provisions of international taxation and
acquire the ability to apply such knowledge in practical case scenarios.

Contents
1 Background of International Taxation
i Genesis of international taxation

ii International tax conflicts and double taxation

iii Meaning of treaty

iv Source rule vs. Residence rule of taxation

2 Overview of the Income-tax Act, 1961

i Charge of income-tax and important definitions

ii Residential Status and Control and Management

iii Scope of total income

iv Concept of ‘deemed accrual’- Section 9

v Business connection (including significant economic presence)

3 Non-resident Taxation
i Categories of income and their taxability

ii Withholding tax

iii Return filing obligations of non residents

4 Taxation of E-Commerce Transactions (including Equalization levy)

5 Double Taxation Relief

i Concept of double taxation and circumstances that give rise to double taxation

ii The Concept of Tax Neutrality

iii Types of Relief

iv Tax Residency Certificate

v Treaty shopping

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 6 Model Tax Conventions
i Introduction – OECD and UN Model Tax Conventions

ii Comparative analysis of some of the significant articles of OECD and UN Model Tax Conventions
(with examples of India’s DTAAs with USA, Singapore, UK, UAE and Netherlands)

iii Protocol to DTAAs (MFN Clause)

7 Transfer Pricing
i Introduction

ii International transaction

iii Associated Enterprises

iv Specified domestic transaction

v Arm’s-length price

vi Computation of arm’s-length price

vii Safe Harbour rules (SHRs)

viii Overview of Advance Pricing Agreement

ix Secondary Adjustment and Thin Capitalisation

x Documentation and Compliances

8 Overview of BEPS

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

Further, the specific inclusions/exclusions in any topic covered in the syllabus will be effected by way of Study
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.

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PAPER 6 : THE ARBITRATION AND CONCILIATION (100 MARKS)
ACT, 1996

Objective

To develop an understanding of the Arbitration and Conciliation Law and acquire the ability of understanding
issues in practical situations.

Contents
1 Introduction: Introduction to the various modes of Alternate Dispute Redressal Mechanism (ADRs).

2 Fundamentals of Arbitration: General provisions, Arbitration Agreement, Conduct of Arbitral

Proceedings, Making of Arbitral Award and Termination of Proceedings, Recourse against Arbitral
Award, Finality and Enforcement of Arbitral Awards.

3 Enforcement of Certain Foreign Awards: Types of Arbitration, Arbitral Awards (Adhoc, Domestic and
International Commercial Awards), Enforcement of Foreign Awards (New York Convention Awards
and Geneva Convention Awards).
4 Conciliation: Difference between Arbitration and Conciliation, Commencement of Conciliation
Proceedings, Number of Conciliators, Appointment of Conciliators, Submission of Statements to
Conciliator, Conciliator not bound by Certain Enactments, Role of Conciliator, Administrative
Assistance, Communication between Conciliator and Parties, Disclosure of Information.

Note: If new legislations are enacted in place of the existing legislations, the syllabus would include the
corresponding provisions of such new legislations with effect from a date notified by the Institute.

The specific inclusions/exclusions in the various topics covered in the syllabus will be effected every year by
way of Study Guidelines, if required.

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PAPER 7 : FORENSIC ACCOUNTING (100 MARKS)

Objective

a To develop an understanding of the basic concepts of Forensic Accounting and its application in Fraud
Investigations.

b To acquire the ability to apply such concepts in practical case scenarios.

Contents

1 Background & Overview

i Brief overview & evolution of Forensic Accounting profession

ii Increasing Importance of Forensic Accounting profession

iii Legal & Regulatory ramifications

iv Opportunities in Forensic Accounting for Chartered Accountants

2 Introduction & Basic Concepts

i Meaning of Fraud, Forensics, Forensic Accounting, Investigations

ii Differences between Audit, Forensics & Investigations

iii Roles & Responsibilities of Stakeholders

iv Theories and Vulnerabilities of Fraud

v Introduction to Forensic Accounting and Investigations Standards (FAIS)

3 Nature & Types of Frauds

i Different Categories of Fraud

ii Different Nature of Frauds

iii Types of Occupational Frauds - Fraud Tree

iv Specialised Areas/schemes of Fraud

v Cyber Fraud/Crime

vi Fraud Mechanisms

4 Financial Statement Frauds

i Characteristics, nature and Reasons

ii Different types of Financial Statement Frauds

iii Legal & Regulatory provisions related to Financial Statement Frauds

iv Fraud Risk Factors in Financial Statement Frauds

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 5 Process of Forensic Investigation

i Initialization & defining mandate

ii Develop Plan & gather expertise

iii Gathering Relevant Evidence

iv Perform the analysis

v Reporting

vi Court proceedings

6 Fraud Detection

i Fraud Predication/Indicators

ii Quantitative Evidence - Data Mining & Analysis

iii Qualitative Evidence

iv Law and Evidence

v Applying Hypothesis

7 Digital Forensics

i Digital Evidence

ii Use of Technology Tools

iii Laboratory Analysis of Physical and Electronic Evidence

iv Important legal sections of Information Technology Act

8 Interviewing Skills

i Art & Science of Interviews - Nature & Type

ii The Interview Process

iii Importance of Non-verbal Cues

iv Recording the Statements

v Case Studies/Role play

9 Writing a Forensic Investigation Report

i Summary of findings

ii Presenting & discussing draft report

iii Key Elements as per Forensic Accounting and Investigations Standards (FAIS)

iv Assumptions and Limitations

10 Fraud Prevention

i Anti-Fraud Policies / Vigilance Mechanism

ii Internal Controls and Systems & Processes

iii Compliance Culture

iv Disciplinary Mechanism

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PAPER 8 : VALUATION (100 MARKS)

Objective

a To develop conceptual understanding of valuation, various approaches and methodologies.

b To develop understanding of the regulatory requirements and the framework.

c To develop basic understanding towards applying various valuation methodologies, techniques and its
approaches on business organizations.

Contents

1 Introduction to Valuation

i Genesis of Valuation

ii Valuation under present scenarios

iii Reference to important terminologies

- Valuation
- Valuer
- Registered Valuer
- Types of Value
- Distinction between Price and Value
- Valuation Bases and Premise
- Valuation Date

2 Need and Purpose of Valuation

i Purpose of Valuation

ii Transaction based Valuation

iii Regulatory & Tax based Valuation

iv Other Requirements based Valuation

3 Valuation Approaches and Methodologies

i Valuation Approaches (Definition)

- Asset Based Approach
- Income/Earning Based Approach
(a) Price/Earnings Ratio & Price/Growth Ratio
(b) Earning measure on Cash Flow Basis (DCF Approach)
(c) Earning measure non-Cash Flow Basis (Non DCF Approach)
- Market Based Approach

ii Fair Value Computation

iii Guidelines for opting Approaches/ Methodologies under various circumstances

4 Valuation Documentation and Report

i Purpose of Valuation

ii Transaction based Valuation

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 5 Valuation Standards

Basic understanding of ICAI Valuation Standards 2018 and its application

6 Other Applications of Valuation

Valuation in specific Situations and Cases

i Valuation of Inventories

ii Valuation of Investments

iii Fixed Income Instruments

iv Valuation of Intangibles

v Valuation of Liabilities

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PAPER 9 : FINANCIAL SERVICES AND CAPITAL (100 MARKS)
MARKETS

Objective

a To gain knowledge of financial services rendered by various intermediaries and their role and activities
in the financial market, especially in capital market.

b To acquire the ability to apply such knowledge to address issues in practical scenarios.

Contents

1 Introduction to Financial Markets

i Introduction to Financial Market

ii Role of Financial Market in Economic Development of a country

iii Stakeholders in Financial Market (Domestic and Global)

iv Indian Financial Market scenario

2 Impact of various Policies of Financial Markets

i Credit Policy of RBI

ii Fed Policy

iii Cost Inflation Index

iv Consumer Price Index

v Wholesale Price Index

3 Capital Market - Primary

i Basics of Capital Markets

ii Segments of Capital Markets

iii Capital Market Instruments

iv Aspects of Primary Market – Kinds of Securities, Types of Offer Documents, Issue Requirements,
Intermediaries to the Capital Markets, Book Building, Special Purpose Acquisition Companies,
Application Supported by Blocked Amount (ASBA), Green Shoe Option, Anchor Investors, Private
Placement of Shares, Right Issue, Exit Offers

4 Capital Market - Secondary

i Introduction to Secondary Market

ii Development of the Stock Market in India

iii Stock Market Organization in India

iv Demutualization of Stock Exchanges

v Share Trading in Secondary Market – Trading buy a Retail Investor, Algorithmic Trading, Basket
Trading

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 vi Stock Market and its Operations – Growth of Stock Exchanges, Characteristics of Stock Exchanges
in India, Functions of Stock Exchanges, Basics of Stock Market Indices, Index Management,
Rebalancing and Reconstitution, Uses of Market Indexes

vii Risk Management in Secondary Market – Trading Rules and Regulations, Circuit Breakers to curb
excess volatility, Trading and Settlement, National Securities Clearing Corporation Limited, Market
Making System, Securities Lending and Borrowing, Short Selling, Straight Through Processing,
Margin Trading, Block Mechanism in Demat Account

viii Other aspects of Secondary Market – Buy Back of Shares, Block and Bulk Deals

ix Indian Debt Market

x Emerging Markets–GIFT City, Power Exchange, Energy Exchange, Social Stock Exchange

5 Money Market

i Basics of Money Market

ii Money Market Participants

iii Money Market Instruments

iv Cash Reserve Ratio and Statutory Liquidity Ratio

v Determination of Interest Rates – MIBOR, LIBOR, Replacement of LIBOR

vi Money Market Instruments – Government Securities (G Sec)

vii Recent developments in Money Market

viii Repo and Reverse Repo

ix CRR, SLR

x Day Count Convention

6 Bond Market

i Introduction to Bond Market

ii Primary Bond Market vs Secondary Bond Market

iii Types of Bond Market

iv Bond Market Strategies

v Bond Indices

vi Bond Market vs. Stock Market

7 Derivative Market

i Introduction to Derivatives

ii Forward Contract

iii Futures Contract

iv Options Contract

v Concept of Swaps

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 8 Institutions and Intermediaries

i Depository

ii Stock and Commodity Exchanges – Indian and Global

iii Intermediaries in the Capital Markets – Merchant Bankers, Registrars to an issue and Share
Transfer Agents, Underwriters, Bankers to an issue, Debenture Trustees, Portfolio Managers,
iv Stockbrokers, and sub-brokers

v Institutional Investors

vi Foreign Portfolio Investors (FPIs)

vii Custodians

viii Clearing Houses – Indian and Global

9 Commodity Market

i Introduction of Commodity Markets

ii Role of Commodity Markets

iii Commodity Market in India–Including warehousing and physical settlement

iv Application of Derivative in Commodities

v Global Commodities Exchanges

10 Mutual Funds

i Meaning

ii Evolution

iii Mutual Fund Organization

iv Types of Mutual Funds

v Net Asset Value (NAV)

vi Performance Measurement

vii Advantages and Disadvantages of Mutual Fund

viii Factors influencing the selection of Mutual Funds

ix Signals highlighting the exit of investors from the Mutual Fund Scheme

x Money Market Mutual Funds

xi Exchange Traded Funds (ETFs)

xii Real Estate Investment Trusts (ReITs)

xiii Infrastructure Investment Trusts (Invits)

xiv Other aspects - Side Pocketing and Tracking Error

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 11 Private Equity

i Meaning of Private Equity

ii Classification of Private Equity

- Venture Capital
- Buyouts
- Hurdle rate
- Paid in Capital
- Term Sheet

iii Cost of Investing in Private Equity

iv Exit Routes

v Valuation of Private Equity Transactions

vi Private Equity Funds (Distribution of returns in General Partner and Limited Partner)

vii Contemporary issues in Private Equity – The rise of patient capital, Ethical Issues

12 Investment Banking

i Concept

ii Functions

iii Challenges

iv Developments in Investment Banking

v Merchant Banking and Issue Management

13 Credit Rating

i Introduction

ii Rating Services

iii Objectives and types

iv Uses

v Credit Rating Process

vi Credit Rating Methodology

vii CAMEL Model in Credit Rating

viii Rating Revisions

ix Credit Rating Agencies in India and abroad

x Credit Rating agencies and the US Sub-prime crisis

xi Limitations of Credit Rating

xii Contemporary Aspects in Credit Rating

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 14 Leasing

i Meaning, types, advantages, and disadvantages of Leasing

ii Financial evaluation of lease proposal from the perspective of Lessee and Lessor

iii Break Even Lease Rental (BELR) from Lessee’s and Lessor’s point of view

iv Cross Border Leasing

v Regulatory Aspects of Leasing

15 Factoring

i Concept, Definition and Mechanism of Factoring

ii Types/Forms of Factoring

iii Functions of a Factor

iv Benefits of Factoring

v Factors inhibiting the growth of Factoring in India

vi Forfaiting

vii Forfaiting vs Export Factoring

viii Regulatory Aspects of Factoring

16 SEBI Regulations – Compliances in Capital Markets

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PAPER 10 : FOREX AND TREASURY MANAGEMENT (100 MARKS)

Objective

To gain knowledge in the field of Forex and Treasury Management, deal with its complexities, and
apply it in practical situations.

Contents

1 Organizational Structure of Treasury

i Introduction of Treasury

ii Treasury – Its Evolution and Objectives

iii Organization Structure of Treasury – Front, Back & Mid Office

iv Functions of Treasury Department

v Role of Treasury and Treasurer in:

- Raising Capital
- Managing Bank Relationships
- Money Management
- Treasury Performance Management
- Liquidity Management
- Credit Management
- Forex Management
- Risk Management

vi Responsibilities of a Treasurer

vii Integrated Treasury Management - Cost Centre and Profit Centre

2 Process of Treasury

i Treasury Management - Systems and Techniques

ii Treasury Policy and Procedure Manual

iii Delegation with Accountability:

- Open Position Limits: Daylight, Overnight, Asset Position Limit, Intraday Limit
- Deal Size, Individual Dealer’s Limit
- Stop Loss Limits

iv Control and Reporting Requirements

v Dealing and Trading Operations – Control and Orderly Conduct, Moral and Ethical Codes, Checks
of Balances, Signing Ethical Code Agreement

vi An insight into:
- Float, Availability, Swaps
- Account Analysis, Clearing Houses
- Lockboxes, Disbursement

vii Benchmark Rates for Discounting Cash Flows

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 viii Liquidity and Cash Flow Management – CRR
- Objectives, Sources and Deployment
- Internal Control, Netting, Gap Management

ix Treasury Management Processes like Domestic Treasury Remittances, International Treasury

Remittances

x Payment & Settlement Systems, CCIL, CLS, RTGS, NEFT and SWIFT

xi Dealing Room Operations: Nostro / Vostro/ Loro, Mirror A/cs – Open Currency Position, Cash
Position by Dealers

3 Types of Treasuries

i Treasury – Manufacturing and Service Corporates:

ii Background
- Contribution Analysis
- Operating and Financial Leverage
- Liquidity Management
- Foreign Exchange Exposures
- Commodity Exposures
- Credit Exposures
- Debt Restructurings

iii Treasury – Banking

- Background
- Capital Adequacy
- Yield Curve and Spreads
- Credit Risks
- Foreign Exchange Risk
- Interest Risks
- Re-financing Risks
- Securitization
- Asset Liability Management

iv Treasury – Special Reference to:

- Insurance Companies (Life & General)
- Mutual Fund Organizations
- Chit Fund Organizations
- Housing Finance Companies
- Non-banking Financial Companies
- Government (Either State or Central)
- Reserve Bank of India
- Profit Centre Vs. Non-Profit Treasury

4 Treasury — Domestic

Classification of Treasury Market:

- Domestic or National Treasury Market
- Forex or International Treasury Markets

5 Treasury – Forex

i Foreign Exchange Markets:

- Different Kinds of Inter - Bank Forex Markets
- Highly Traded Markets - Cash/OTC
- Nature of Transactions
- Cross Border Currency Flows
- Liberalization of Exchange Control

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 - Role of Banks in Forex Market
- Factors Impacting Forex Market
- Convertibility and BOP

ii Forex Concepts:
- Exchange Rate Quotes
- Factors affecting Exchange Rates
- Exchange Rate Mechanism
- Spot and Cross and Forward Rates
- Premium and Discount
- Forward Contracts–Booking, Extension, Cancellation

iii International Treasury:

- Market Participants
- Various Forex Treasury Products
- Volatility of Major Currencies
- Currency Trading
- Global Securities – Portfolio Management

iv Derivative Markets:
- Futures, Options and Swaps
- Price Calculation of Various Instruments
- Swaps - Outright Deals, Dealer Operations
- Trends in Futures Market
- Short Term Interest Rate Futures

v Interest Rate Derivatives:

- Introduction
- Brief terminologies
- Hedging

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SYLLABUS
SET D
PAPER 1 : THE CONSTITUTION OF INDIA (100 MARKS)
AND ART OF ADVOCACY

Objective

a To have basic knowledge of the Constitution governing the State, Government and rights and duties of
the Citizens.

b To develop an understanding of the legal system in India and acquire knowledge and apply basic
principles of drafting and pleading.

PART I : THE CONSTITUTION OF INDIA

Contents

1 Introduction: Preamble, Features, Sources, the Union and its Territory, Citizenship, Fundamental Rights,
Duties and Directive Principles.

2 Government of Union: The Executive, Parliament, Judiciary.

3 Government of States: The Executive, State Legislature, High courts in the States.

4 Relation between Union and the States: Legislative relations, Administrative relations, Financial
relations.

5 Emergency Provisions

6 Procedure for Amendments

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PART II : ART OF ADVOCACY

Contents

1 Development of Legal System in India

2 Representation by Chartered Accountants in Tribunals

3 Basic Rules of drafting and pleading

Note: If new legislations are enacted in place of the existing legislations, the syllabus would include the
corresponding provisions of such new legislations with effect from a date notified by the Institute.

The specific inclusions/exclusions in the various topics covered in the syllabus will be effected every year by
way of Study Guidelines, if required.

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PAPER 2 : PSYCHOLOGY & PHILOSOPHY (100 MARKS)

SECTION A : PSYCHOLOGY

Objective

a To develop knowledge and understanding of basic concepts in psychology and its implication in the
accountancy process.

b To give a practical/utilitarian perspective of psychological concepts that is applicable in personal and

work life.

Contents

1 Introduction (Definition, Orientation and Scope)

i What is Psychology?

ii Misconceptions in Psychology

iii Applications and Scope of Psychology in Accounting and accountancy

2 Personality

i Understanding Personality (HEXACO model and Dark Triad theory)

ii Role of Personality during human interaction in accounting

iii Mindfulness and Decision Making

iv Factors affecting Decision Making (Attitude: stereotypes and prejudices; aptitude and motivation)

v Decision Making under uncertainty

3 Individual level psychological process

i Emotional Intelligence Concept (self-awareness, self-regulation, self-management, relationship

management) of EI

ii Strategies to enhance EI in day-to-day activities

iii Navrasa

iv Communication (verbal and nonverbal)

v Stress Management & Work-life Balance

vi Understanding stress (Eustress and Distress)

vii Practical ways to deal with stress

4 Psychological processes in Organizations

i Groups, Leadership and Change Management

ii Conceptual understanding (Group Think, Conformity and Social loafing, Work Teams, Leadership,
Change management) and its application in modern accounting

iii PsyCap and Goal Setting in Accountancy Self-efficacy, Optimism, Hope and Resilience and goal
setting in accounting

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SECTION B : PHILOSOPHY

Objective

a To develop an understanding of the usefulness of philosophy in contemporary life.

b To develop an understanding of the philosophical methods of critical thinking and analytical reasoning
and know who we are and how we ought to conduct ourselves.

Contents

1 General Discussions on Philosophy and Reasoning

i What is Philosophy?

ii Core branches in Philosophy (Indian and Western)

- Epistemology (Theory of Knowledge- Truth, Justification and Belief)
- Metaphysics (Nature of Reality: Mind-Body Dualism, Nature of Consciousness)
- Axiology (Ethics and Aesthetics)

iii Characteristics of Indian Philosophy: Darshana Shastra

2 Critical Thinking and Reasoning

i Argument and Evaluation

ii Informal Fallacy

3 Ethics: Who we are & How we ought to conduct ourselves

i Virtue Ethics and Theory of Excellence: Plato and Aristotle

- Teleology (Theory of Means and End)
- Deontology (Concept of Duty)

ii Indian Ethics
- Aims of Life: Dharma (Duty), Artha (Wealth), Kama (Pleasure), Moksha (Liberation)
- Yoga: Karma Yoga, Bhakti Yoga, Jnana Yoga, Raja Yoga
- Meditation: Chitta Vritti Nirodha, Yama and Niyama

4 Usefulness of Philosophy in Contemporary life (especially for CAs)

i Business Ethics
- Karma Yoga for superior business performance
- Lokasamgraha in Bhagavad Gita
- Leadership and Communication

ii Justice: Freedom, Responsibility and Action

iii Gender and Environment

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PAPER 3 : ENTREPRENEURSHIP AND (100 MARKS)
START-UP ECOSYSTEM

Objective

To gain knowledge and acquire the ability to develop multidimensional skills in Entrepreneurship and
Start-Up Ecosystem.

Contents

1 Part A: Introduction to Entrepreneurship & Startups: Meaning and concept of entrepreneurship &
Startups, the history of entrepreneurship development, Types of entrepreneurs, Role of
entrepreneurship & Startups in economic development, Rise of Startups: Global Perspective, Rise of
Startups: Indian Perspective. The skills/ traits required to be an entrepreneur, creative and design
Thinking, the entrepreneurial decision process, Succession Planning and Managing Family Business

Part B: Startup Registration: DPIIT Recognition, Benefits, Government Seed Funding, etc.

2 Crafting business models and Lean Start-ups: Introduction to business models; Creating value
propositions-conventional industry logic, value innovation logic; customer focused innovation;
building and analysing business models; Business model canvas, Introduction to lean start-ups,
Business Pitching

3 Product Development: Building a Minimum Viable Product (MVP), Journey towards building "Product
Market Fit", Practical case studies on journey of successful startups from MVP to PMF, Prototype and
Agile development methodology for tech Startups, Identify critical success elements: Product (tech),
Product (offering), Procurement, Supply Chain

4 Pitching the idea and presentation: Drafting of Pitch Deck and Business Plan, Art of Elevator Pitch,
Rules/Steps of Pitching the idea, Art of Persuasion

5 Institutions Supporting Small Business Enterprises: Central level institutions. State level institutions.
Other agencies. Industry Associations. Current government schemes supporting entrepreneurship

6 Funding & Valuation: Understanding basics of Startup Funding & where to get investment, Quantifying
the seed capital, Prerequisite of Startup Funding, Financial Modelling for the Startups, How to approach
Angel Investors & VC Firms, understanding Term Sheet, Investor Agreement and Equity Dilution, the
science behind 'Startup Valuation'

7 Legal considerations for a Startup: Choosing an ideal entity type and overview of registration process,
Startup Equity Split among cofounders and equity vesting, ESOP Planning and other best practices,
Drafting of Cofounder Agreement, Registering intellectual property rights (IPRs) [Patent, Copyright
and Trademark, etc.]

8 Startup Incubators & Acceleration: Difference between incubators and accelerators, Choosing the
right one (factors and effect thereof), Working of incubators and accelerators

9 Miscellaneous: Case studies on success stories, Role of Startup Advisors & Funding Agents, Building a
right Startup Team, Founder's grooming: Role of PR Building Activities in success of startups, Being part
of Startup Community and leading it and Exit Strategies

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PAPER 4 : DIGITAL ECOSYSTEM AND (100 MARKS)
CONTROLS

Objective

To develop competencies and skillsets in evaluation of controls and relevant evidence gathering in an IT
environment using IT tools and techniques for effective and efficient performance of accounting, assurance,
financial technologies and compliance services.

Contents

1 Governance and Management of Digital Ecosystem

- Key concepts of Governance and IT strategy
- Governance, Risk and Compliance (GRC) Framework
- Risk fundamentals and related terms, Sources, and types of risk
- Enterprise Risk Management Framework
- Information Systems Security Policy
- Business Continuity Planning and Disaster Recovery Planning

2 Information Systems Life Cycle

- Information System Acquisition
- Information System Development methodologies
- Information Systems implementation and maintenance

3 Information Systems’ Control

- Information Systems’ Control and its classification
- Overview of Information Technology Tools
- Illustrations on Risks and Controls of specific business processes

4 Digital Data and Analysis

- Data privacy
- Data assurance
- Introduction to Personal Data Protection Bill, 2019
- Regulatory compliance in terms of relevant sections of Information Technology Act, 2000
- Introduction to Data Analytical tools and Techniques
- Introduction to Business Intelligence (BI) tools and techniques

5 Digital Economy
- ABCD of Fintech
- Digital payments, Digital Currency, and Cryptocurrency
- e-business and their associated risks and controls
- Emerging Technologies and Concepts

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