Igniting minds

Expanding horizons

ICSI NEW
SYLLABUS
2022
 B. Executive Programme*

Paper Group 1 Paper Group 2

No. No.

1. Jurisprudence, Interpretation & 5. Capital Market & Securities Laws

General Laws (100 Marks)
Part I – Capital Market (40 Marks)

Part II – Securities Laws (60 Marks)

2. Company Law & Practice 6. Economic, Commercial and Intellectual

Property Laws
Part I – Company Law – Principles
and Concepts Part I – Economic & Commercial Laws

(60 Marks) (60 Marks)

Part II – Company Administration & Part II – Intellectual Property Laws

Meetings
(40 Marks)
(40 Marks)

3. Setting Up of Business, Industrial & 7. Tax Laws & Practice

Labour Laws
Part I - Direct Tax (60 Marks)
Part I – Setting Up of Business
Part II - Indirect Tax (40 Marks)
(60 Marks)

Part II – Industrial & Labour Laws

(40 Marks)

4. Corporate Accounting and

Financial Management

Part I – Corporate Accounting

(60 Marks)

Part II – Financial Management

(40 Marks)

*ICSI Syllabus 2022 aims to inculcate principles, laws and interpretation at the Executive Level,
in this regard, the grouping of Papers under Group 1 of the Executive Programme has been done
keeping in view the critical aspects of ‘Ease of Learning’; ‘Balancing of Theoretical / Legal and
Practical Papers’ and ‘Strengthening of fundamental concepts having relevance in the Papers
covered under subsequent Group 2. In light of these facts, the students are advised to give the
priority to Group 1 while appearing in Executive Programme Examination.

Mode of Examination : Combination of both 20% case based objective type questions and 80% descriptive
questions at all papers at Executive Programme except Paper No. 4 i.e. Corporate Accounting and
Financial Management which is 100% descriptive.

Duration : 3 Hours (each paper)

Marks : 100 Marks (each paper)

2
 C. Professional Programme

Paper Group 1 Paper Group 2

No. No.

1. Environmental, Social and 5. Strategic Management & Corporate

Governance (ESG) – Principles & Finance
Practice
Part I – Strategic Management
Part I – Governance and
(40 Marks)
Sustainability
Part II – Corporate Finance
(65 Marks)
(60 Marks)
Part II – Risk Management
(20 Marks)
Part III- Environment &
Sustainability Reporting
(15 Marks)

2. Drafting, Pleadings and 6. Corporate Restructuring, Valuation and

Appearances Insolvency
Part I - Drafting and Part I – Corporate Restructuring
Conveyancing
(40 Marks)
(70 Marks)
Part II – Valuation
Part II - Pleadings and
(20 Marks)
Appearances
Part III – Insolvency, Liquidation & Winding
(30 Marks)
up
(40 Marks)

3. Compliance Management, Audit 7. Elective 2

& Due Diligence
(Select one Paper out of 5 Elective Papers)
Part I – Compliance Management
(40 Marks)
Part II – Audit & Due Diligence
(60 Marks)

4. Elective 1
(Select one Paper out of 4
Elective Papers)

Mode of Examination : Descriptive

For Elective Papers : Descriptive & Open Book

Duration : 3 Hours (each paper)

Marks : 100 Marks (each paper)

3
 ELECTIVE PAPERS
(Select one paper each from Elective 1 and Elective 2 respectively)

Paper Elective 1 Paper Elective 2

No. No.

4.1 CSR & Social Governance 7.1 Arbitration, Mediation & Conciliation

Part I – Corporate Social Part I – Arbitration & Conciliation

Responsibility
(70 Marks)
(50 Marks)
Part II – Mediation
Part II – Social Governance
(30 Marks)
(50 Marks)

4.2 Internal and Forensic Audit 7.2 Goods and Services Tax (GST) & Corporate
Tax Planning
Part I – Internal Audit
Part I – Goods and Services Tax (GST)
(60 Marks)
(70 Marks)
Part II – Forensic Audit
Part II – Corporate Tax Planning
(40 Marks)
(30 Marks)

4.3 Intellectual Property Rights – 7.3 Labour Laws & Practice

Law & Practice
(100 Marks)
(100 Marks)

4.4 Artificial Intelligence, Data 7.4 Banking & Insurance – Laws & Practice
Analytics and Cyber Security –
Part I – Banking Laws
Laws & Practice
(50 Marks)
(100 Marks)
Part II – Insurance Laws

(50 Marks)

7.5 Insolvency and Bankruptcy – Law & Practice

(100 Marks)

D. Applicability of latest updates on Examination

The objective of the course is to develop a cadre of Company Secretaries by imparting professional
knowledge and training considered pre-requisite for functioning of a Company Secretary – whether in
employment or in practice. The syllabus for the examination as set out gives the broad framework within
which questions may be asked. The questions may not be necessarily restricted to specific wording or a
nomenclature of any terms and legislative enactments contained therein. The field of business being in a
constant flux, the candidates are expected to be thoroughly conversant with the latest developments in
different areas, amendments to the laws or the corresponding provisions of any statutory modifications
or reenactment thereof and judicial pronouncement related and relevant to the stated course content.
The candidates are expected to keep track of and have intelligent grasp of the latest developments in

4
 EXECUTIVE PROGRAMME

GROUP 1

JURISPRUDENCE, INTERPRETATION & GENERAL LAWS

Paper-1

Objectives :
l To provide understanding, application and working knowledge of jurisprudence and general laws.

l To inculcate interpretational skills and to teach the manner of reading law.

Level of Knowledge : Working Knowledge

S. Detailed Contents
No.

1 Sources of Law :

l Meaning of Law and its Significance l Relevance of Law to Civil Society l Jurisprudence
& Legal Theory l Schools of Law propounded by Austin, Roscoe Pound, Salmond, Kelsen,
Savigny, Bentham and others l Statutes, Subordinate Legislation, Custom, Common Law,
Precedent, Stare decisis

2 Constitution of India :

l Broad Framework of the Constitution of India l Fundamental Rights, Directive Principles

of State Policy and Fundamental Duties l Legislative framework and Powers of Union and
States l Judicial framework l Executive/Administrative framework l Legislative Process
l Finance Bill and Other Bills l Parliamentary Standing Committees and their Role l Writ
Jurisdiction of High Courts and the Supreme Court l Different types of writs

3 Interpretation of Statutes :
l Need for interpretation of a statute l Meanings of Interpretation of Statutes l A state and
the casus omissus l Interpretation of Definition Clause l Principles of Interpretation including
Heydon’s Rule of Interpretation, Golden Rule of Interpretation l Aids to Interpretation l
Legal Terminologies l Reading a Bare Act & Citation of Cases l Pari Materia l Harmonious
Construction l Prospective and retrospective operation l Use of “May” and “Shall” l Use
of “And” and “or” l Interpretation of proviso l Latin maxims used to interpret words and
phrases l Contemporanea Expositio l Deeming provisions l Repugnancy with other statutes
l Conflict between general provision and special provision l Socially beneficial construction
l Interpretation of Procedural Law l Interpretation of fiscal and taxing statutes l Delegated
legislations l Conflict between Statute, Rules and regulations l Doctrine of substantial
compliance l Doctrine of impossibility of performance l Strict Construction of penal statutes
l Interpretation of Fiscal and Taxation Statute l Brief of General Clause Act, 1897 l Reading
Methodology of the Companies Act, 2013 and its Legal Aura

13
 S. Detailed Contents
No.

4 Administrative Laws :

l Conceptual Analysis l Source and Need of Administrative Law l Principle of Natural Justice
l Administrative Discretion l Judicial Review & Other Remedies l Liability of Government,
Public Corporation

5 Law of Torts :

l General conditions of Liability for a Tort l Strict and Absolute Liability l Vicarious Liability
l Torts or wrongs to personal safety and freedom l Liability of a Corporate Entity/Company
in Torts l Remedies in Torts

6 Law relating to Civil Procedure :

l Structure and Jurisdiction of Civil Courts l Basic Understanding of Certain Terms - Order,
Judgment and Decree, Stay of Suits, Cause of Action, Res Judicata, Sub-judice l Summary
Proceedings/Procedures, Appeals, Reference, Review and Revision l Powers of Civil Court
and their exercise by Tribunals l Institution of Suit l Law relating to Commercial Courts

7 Laws relating to Crime and its Procedure :

l Introduction l Classes of Criminal Courts l Power of Courts l Arrest of Persons l Mens Rea
and Actus Reus l Cognizable and Non-Cognizable Offences l Bail l Continuing Offences l
Compounding of Offences l Summons and Warrants l Searches l Summary Trial l Offences
against Property l Criminal Breach of Trust l Cheating, Fraudulent Deeds and Dispositions
of Property l Offences relating to Documents and Property Marks l Forgery l Defamation

8 Law relating to Evidence :

l Concept of Relevant Evidence and Admissible Evidence l Statements about the facts to
be proved l Relevancy of facts connected with the fact to be proved l Opinion of Third
Persons l Facts of which evidence cannot be given l Oral, Documentary and Circumstantial
Evidence l Burden of proof l Presumptions l Estoppel l Witness l Improper admission &
rejection of evidence l e-evidence

9 Law relating to Specific Relief :

l Specific reliefs and defense l Specific performance and defense l Unenforceable contracts l
Rescission of Contracts l Cancellation of Instruments l Declaratory Decrees l Preventive Reliefs

10 Law relating to Limitation :

lComputation of the Period of Limitation l Bar of Limitation l Effect of acknowledgment l

Acquisition of ownership by Possession l Classification of Period of Limitation

11 Law relating to Arbitration, Mediation and Conciliation :

l Arbitration Law in India l Appointment of Arbitrators l Judicial Intervention l Award l

Recourse against Award l Commencement of conciliation proceedings l Laws relating to
conduct of conciliation proceedings l Termination of conciliation proceedings l Role of
conciliator in other proceedings l Power of High Court to make rules l Development of
Mediation Law l Mediation rules made by Higher Courts

14
 S. Detailed Contents
No.

12 Indian Stamp Law :

l Key Definitions l Principles of Levy of Stamp Duty l Determination, Mode and timing of
Stamp Duty l Person responsible l Consequences of Non-Stamping and Under-Stamping
l Allowance and Refund l Concept of E-Stamping l Payment and Adjudication of Duty

13 Law relating to Registration of Documents :

l Registration of Documents: Compulsory, Optional l Time and Place of Registration l

Consequences of Non-Registration l Prerequisites for Registration l Provisions of Transfer of
Property Act, 1882 and registration of Documents l Properties which cannot be Transferred l
Rule Against Perpetuities l Lis Pendens l Provisions Relating to Sale, Mortgage, Charge,
Lease, Gift and Actionable Claim l Easement Rights

14 Right to Information Law :

l Key Definitions l Public Authorities & their Obligations l Role of Central/State Governments
l Central Information Commission l State information Commission

15 Law relating to Information Technology :

l Introduction, definition, important terms under the IT Act l Digital Signatures, Electronic
Record, Certifying Authority, Digital Signature Certificate l Cyber Regulation Appellate
Tribunal l Offences and Penalties l Rules relating to sensitive personal data under IT Act l
Development and Law of Data Protection

16 Contract Law :

l Formation of an Agreement, Intention to create legal relationship l Offer and invitation to

offer l Kinds of offer, communication, acceptance and revocation of offer and acceptance
l Modes of revocation of offer l Consideration l Basis and the nature of consideration
l Doctrine of Privity of Contract and of consideration l Exceptions of consideration l
Capacity to Contract l Free Consent l Void and Voidable Contracts l Discharge of Contracts
l Remedies for breach of Contract l Quasi Contracts l e-contracts

17 Law relating to Sale of Goods :

l Important definitions l Essentials of a Contract of Sale l Sale Distinguished from

Agreement to Sell l Bailment, Contract for Work and Labour and Hire-Purchase l Conditions
and Warranties l Doctrine of Caveat Emptor l Performance of the Contract of Sale l Effects
of the Contract l Rights of unpaid seller against the goods l Suits for breach of the contract

18 Law relating to Negotiable Instruments :

l Negotiable Instruments and Parties l Material Alteration l Crossing and bouncing of

Cheques l Dishonour of Cheques & its Remedies l Presumption of Law as to Negotiable
Instruments

15
 GROUP 1

COMPANY LAW & PRACTICE

Paper-2

Objectives:
l To provide conceptual understanding on the principles and provisions of the Company Law.

l To equip the students with working knowledge about management and administration of
companies.

Level of Knowledge: Working Knowledge

S. Detailed Contents
No.

Part I : Company Law–Principles & Concepts (60 Marks)

1 Introduction to Company Law:

lJurisprudence of Company Law l Doctrine of Ultra-vires l Doctrine of Indoor Management
l Doctrine of Constructive Notice l Concept of Corporate Veil l Applicability of the
Companies Act l Definitions and Key Concepts l MCA 21

2 Legal Status and Types of Registered Companies:

Legal Status of Registered Companies:
l Corporate Personality l Perpetual succession l Separate property l Transferability of
shares l Capacity to sue or be sued
Types of Registered Companies:
l Private Company l Public Company l Small Company l Holding Company l Subsidiary
Company l Associate Company l Dormant Company l Government Company

3 Memorandum and Articles of Association and its Alteration:

l Memorandum of Association and Articles of Association l Incorporation Contracts
l Alteration in MOA & AOA

4 Shares and Share Capital-Concepts:

l Meaning and Types of Capital l Issue and Allotment l Issue of Share Certificates l Further
Issue of Share Capital l Issue of shares on Private and Preferential basis l Rights issue and
Bonus Shares l Sweat Equity Shares and ESOPs l Issue and Redemption of Preference Shares
l Transfer and Transmission of Securities l Buyback of Securities l Reduction of Share
Capital l Payment of Stamp Duty l Registers and Records

5 Members and Shareholders:

l How to become a Member l Register of Members l Declaration of Beneficial Interest

l Significant Beneficial Owner l Rectification of Register of Members l Rights of Members
l Variation of Shareholders’ Rights

16
 S. Detailed Contents
No.

6 Debt Instruments-Concepts:

l Issue and Redemption of Debentures and Bonds l Creation of Security l Debenture

Redemption Reserve l Debenture Trust Deed l Conversion of Debentures into Shares
l Overview of Company Deposits

7 Charges:

l Creation of Charges l Registration, Modification and Satisfaction of Charges l Register of

Charges l Inspection of Charges l Punishment for Contravention l Rectification by Central
Government in Register of Charges l Purpose,Objective, Drafting and Issuing of Search
Report

8 Distribution of Profits :

l Profit and Ascertainment of Divisible Profits l Declaration and Payment of Dividend

l Unpaid Dividend Account l Investor Education and Protection Fund l Right to Dividend
l Rights Shares and Bonus shares to be held in abeyance l Secretarial Standards on Dividend
l Dividend Distribution Policy

9 Accounts and Auditors :

l Books of Accounts l Financial Statements l National Financial Reporting Authority

l Auditors- Appointment, Resignation and Procedure relating to Removal, Qualification and
Disqualification l Rights, Duties and Liabilities l Audit and Auditor’s Report l Cost Audit
l Secretarial Audit l Internal Audit

10 Compromise, Arrangement and Amalgamations-Concepts:

l Introduction of Compromises, Arrangement and Amalgamation l Oppression and

Mismanagement l Class Actions Suits

11 Dormant Company:

l Legal framework for Dormant Companies l Procedure to obtain the status of a Dormant
Company l Prerequisite for obtaining the status of Dormant Company l Benefits /
exemptions provided to a Dormant Company l Compliance requirements by Dormant
Company l Procedure to obtain the status of an Active Company from Dormant Company

12 Inspection, Inquiry and Investigation

l Powers for inspection l Purpose of conducting Inspection l Kinds of Investigation l Power

of Inspector to Conduct Investigation into Affairs of Related Companies l Protection of
employees during Investigation l Seizure of Documents by Inspector l Freezing of Assets
of Company on Inquiry And Investigation l Imposition of Restrictions upon Securities l
Inspector’s Report l Expenses of Investigation l Preparation by a Company Secretary
to face Investigation l Establishment of Serious Fraud Investigation Office l Process of
Investigation by Serious Fraud Investigation Office

17
 S. Detailed Contents
No.

Part II : Company Administration and Meetings (40 Marks)

13 General Meetings:

l Annual General Meeting l Extraordinary General Meetings l Other General Meetings

l Types of Resolutions l Notice, Quorum, Poll, Chairman, Proxy l Meeting and Agenda
l Process of conducting meeting l Voting and its types-vote on show of hands, Poll, E-Voting,
Postal ballot l Circulation of Members’ Resolutions l Signing and Inspection of Minutes
l Secretarial Standard – 2 l Duties of Company Secretaries before, during and after General
Meeting l Virtual Meetings : Technological Advancement in conduct of General Meetings
l Drafting of Notice and Minutes of Annual General Meeting and Extra-Ordinary General
Meeting

14 Directors:

l DIN requirement l Types of Directors l Appointment / Reappointment, Disqualifications,

Vacation of Office, Retirement, Resignation and Removal l Loans to Directors l Disclosure
of Interest l Duties of Directors l Rights of Directors

15 Board Composition and Powers of the Board :

l Board composition l Powers of Board l Restrictions on Powers of Board l Board Committees

l Overview of Inter-Corporate Loans, Investments, Guarantees and Security l Related Party
Transactions

16 Meetings of Board and its Committees :

l Frequency, Convening and Proceedings of Board and Committee meetings l Agenda

Management l Meeting Management l Resolution by Circulation l Types of Resolutions
l Duties of Company Secretaries before, during and after Board/ Committee Meeting
l Virtual Meetings :Technological Advancement in conduct of Board Committee l Need and
Scope of Secretarial Standards l Secretarial Standard – 1 l Drafting of Notice, Agenda and
Minutes of Board and Committee Meetings

17 Corporate Social Responsibility-Concepts :

l CSR Committee l Policy l CSR Expenditure l Activities l Ongoing Project l Impact

Assessment

18 Annual Report-Concepts:

l Board’s Report l Annual Return l Annual Report l Secretarial Standard on Report of the
Board of Directors

19 Key Managerial Personnel (KMP’s) and their Remuneration :

l Appointment of Key Managerial Personnel l Managing and Whole-Time Directors, Manager,

Chief Executive Officer and Chief Financial Officer l Company Secretary – Appointment,
Role and Responsibilities l Company Secretary as a Key Managerial Personnel l Functions
of Company Secretary l Officer who is in default l Remuneration of Managerial Personnel

18
 GROUP 1

SETTING UP OF BUSINESS, INDUSTRIAL AND LABOUR LAWS

Paper-3

Objectives :
l To provide the working knowledge and understanding of the various procedural requirements
involved in the setting up of business entities.

l To acquire working knowledge, understanding and application of Labour Laws.

Level of Knowledge: Working Knowledge

S. Detailed Contents
No.

Part I : Setting up of Business (60 Marks)

1 Selection of Business Organization:

l Key features of various Business Organisations and issues in choosing business organisation
including policy matters, identification of location, tax implications and other relevant
aspects

2 Corporate Entities – Companies:

Types of Corporate Business Entities
l Private Company l Public Company l One Person Company l Nidhi l Section 8 Company
l Producer Company l Foreign Company
Drafting of Incorporation Documents
l Memorandum of Association and Articles of Association l Incorporation contracts,
documents and forms
Formation and Registration
l Procedural aspects with regard to Incorporation of corporate entities

3 Limited Liability Partnership:

l Concept of LLP l Formation and Registration l LLP Agreement l Alteration in LLP Agreement
l Annual and Event Based Compliances

4 Startups and its Registration:

l Start-up India Policy l Registration Process l Benefits and other Government Policies
l Different types of capital - Seed Capital, Venture Capital, Private Equity l Angel Investor
l Entrepreneurship l Case Studies on Unicorn

5 Micro, Small and Medium Enterprises:

l Classification of Enterprises l Memorandum l Measures for promotion and development

l Udyam Registration Process l NSIC Registration l MSMEs Schemes

19
 S. Detailed Contents
No.

6 Conversion of Business Entities:

l Conversion of private company into public company and vice versa l Conversion of Section
8 company into other kind of Company l Conversion of Company into LLP and vice versa
l Conversion of OPC to other type of company and vice versa l Companies authorised to
registered under Chapter XXI of the Companies Act, 2013

7 Non-Corporate Entities:

l Partnership l Hindu Undivided Family lSole Proprietorship l Multi State Co-operative

Society l Trust and Society l Formation and registration l Partnership Agreement and Trust
Deed l Mega Firms

8 Financial Services Organization:

l NBFCs l Housing Finance Company l Asset Reconstruction Company l Micro Finance

Institutions (MFIs) l Nidhi l Payment Banks l Mudra Bank l Registration l Chit Funds

9 Business Collaborations :

l Foreign Collaborations l Joint Venture l Special Purpose Vehicle

10 Setting up of Branch Office/ Liaison Office/ Wholly owned Subsidiary by Foreign Company:

l Formation and Registration

11 Setting up of Business outside India and Issue Relating Thereto:

l Issues in choosing location l Structure and the processes of incorporation of business

entities in UK, USA, Canada and Australia

12 Identifying laws applicable to various Industries and their initial compliances :

l Compliance of industry specific laws applicable to an entity at the time of setting up of

the enterprise

13 Various Initial Registrations and Licenses:

l Mandatory Registration – PAN / TAN l GST Registration l Shops & Establishments l Additional
Registration / License - ESI/PF l Pollution l Other registration as per requirement of sector
l IE Code l FSSAI l Telecom; I & B l Industrial License, Industrial Entrepreneurs Memorandum
(IEM) l Activities specific approvals / permissions / licenses l Environmental & Pollution
clearances l Sectoral approvals / permissions / licenses l State Level Approval from the
respective State Industrial Department

Part II : Industrial and Labour Laws (40 Marks)

14 Constitution and Labour Laws:

l Fundamental rights vis-à-vis labour laws, Equality before law and its application in Labour
Laws, Equal pay for equal work l Article-16 and reservation policies, Articles 19, 21, 23 and
24 and its implications

20
 S. Detailed Contents
No.

15 Evaluation of Labour Legislation and need of Labour Code

16 Law of Welfare & Working Condition :

l The Factories Act l Contract Labour (Regulation and Abolition) Act l The Child and
Adolescent Labour (Prohibition and Regulation) Act

17 Law of Industrial Relations :

l Industrial Disputes Act l Industrial Employment (Standing Orders) Act

18 Law of Wages :

lPayment of Wages Act l Minimum Wages Act l Payment of Bonus Act l Equal Remuneration
Act

19 Social Security Legislations :

l Employees’ State Insurance Act l Employees’ Provident Funds and Miscellaneous Provisions
Act l Maternity Benefit Act l The Payment of Gratuity Act l Apprentices Act, The Labour
Laws (Simplification of Procedure for furnishing Returns and Maintaining Registers by Certain
Establishments) Act

20 Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act,

2013

GROUP 1
CORPORATE ACCOUNTING AND FINANCIAL MANAGEMENT
Paper - 4

Objectives:
l To provide knowledge and understanding of the concepts, principles and practices in Company
Accounts, Interpretation of Financial Statements.
l To provide conceptual clarity and practical aspects of financial management so as to develop
skills in taking financial and investment decisions and in business strategies.

Level of Knowledge: Working Knowledge

S. Detailed Contents
No.

Part I : Corporate Accounting (60 Marks)

1 Introduction to Accounting :

l Book Keeping l Accounting Cycle l Single / Double entry system l Accounting Principles
l Accounting Concept & Convention l Types of Account l Journal l Ledger l Trial Balance
l Final Accounts

21
 S. Detailed Contents
No.

2 Introduction to Corporate Accounting:

l Records of accounts to be maintained by a company l Preparation and Presentation of

Financial Statements l Schedule III of the Companies Act, 2013 l Disclosure Requirement
l True and Fair View of Financial Statements l XBRL

3 Accounting Standards (AS):

l Applicability l Interpretation l Scope and Compliance l International Financial Reporting

Standards l Overview of AS l AS vs. Ind AS vs. IFRS

4 Accounting for Share Capital :

l Issue of Shares l Forfeiture and Reissue of Shares l Accounting Treatment of Premium

l Buy-back of Shares l Redemption and Conversion l Capital Redemption Reserve l Bonus
Shares l Rights Issue l ESOPs l ESPS l Sweat Equity Shares and Underwriting l Book Building

5 Accounting for Debentures:

l Accounting Treatment l Debenture Redemption Reserve l Redemption of Debentures and

Conversion of Debentures into Shares

6 Related Aspects of Company Accounts:

l Accounting for ESOP l Buy-back l Equity Shares with differential rights l Underwriting
and Debentures

7 Consolidation of Accounts:
l Standalone and Consolidated Financial Statements l Holding Company l Subsidiary
Companies l Associate Companies and Joint Venture l Accounting Treatment and disclosures

8 Financial Statement Analysis:

l Introduction l Characteristics of good financial statements and its relevancy for better
reporting l Requirements of Financial Reporting and Recent trends l Best Practices
applicable to all companies l Usage and features of ratios analysis l liquidity ratios
l turnover ratio l leverage ratios l Insolvency ratio and profitability ratio l DuPont Analysis
l Reading and Interpretation of Financial Statements

9 Cash Flows:
l Understanding the Statement of Cash Flows l Identify the purpose of the statement of
Cash Flows l structure and interpretation of operating, investing and financing activities in
Cash Flow statement l Analyze information in the statement of Cash Flows to determine
whether the firm is in its life cycle l Examine additional uses of Cash Flow information

10 Forecasting Financial Statements:

l Build forecasts of future Balance Sheets, Income Statements and Statements of Cash
Flows

22
 S. Detailed Contents
No.

Part II : Financial Management (40 Marks)

11 Introduction :
lNature l Scope & Objectives of Financial Management l Profit Maximization vs. Wealth
Maximization

12 Time Value of Money:

l Introduction l Concept of Time Value of Money – The power of compounding l Significance
and application of Time Value of money l Concept of Annuity l Understanding and application
of Table used in Time value of money

13 Capital Budgeting:
l Compounding and Discounting techniques - Capital Budgeting Process l Techniques of
Capital Budgeting - Discounted and Non- Discounted Cash Flow Methods l NPV l Payback
l Profitability Index l IRR l Economic Value Added (EVA) l Capital Rationing l Risk Evaluation
and Sensitivity Analysis

14 Cost of Capital:
l Sources l Meaning l Factors Affecting Cost of Capital l Methods for Calculating Cost of
capital l Weighted Average Cost of Capital (WACC) l Marginal Cost of Capital

15 Capital Structure:

l Introduction l Significance of capital structure l Determinants of capital structure

lCapital structure planning and designing of optimum capital structure l Capital Structure
Theories l EBIT- EPS Analysis l Breakeven - EBIT Analysis l Under / Over Capitalisation

16 Dividend Decisions:

l Factors determining dividend policy l Dividend Models- Relevant/ Irrelevant Theories -

Walter’s Model, Gordon’s Model, M-M Model l Forms of Dividend – Cash Dividend, Stock
Dividend, Stock Splits, Share repurchase

17 Working Capital Management:

l Meaning l Types l Determinants and Assessment of Working Capital Requirements

l Negative Working Capital l Operating Cycle Concept and Applications of Quantitative
Techniques l Management of Working Capital – Cash Receivables Inventories l Financing of
Working Capital l Banking Norms and Macro Aspects l Factoring and Forfaiting

18 Security Analysis:

l Measuring of Systematic and Unsystematic Risk l Fundamental Analysis (Economic,

Industry and Company) l Technical Analysis and Efficient Market Hypothesis

19 Operational Approach to Financial Decision

l An Overview of Costing l Key Concepts l Basics Principles of Costing l Marginal Costing –

Breakeven Point, Margin of Safety

23