Taxmann's Financial & Strategic Management (FSM/FM & SM)

Contents % ' ! 0

Chapter-wise Marks Distribution

I-7

Chapter-wise Comparison with Study Material

I-9

PART A FINANCIAL MANAGEMENT Chapter 1 NATURE & SCOPE OF FINANCIAL MANAGEMENT

1.3

Chapter 2 2.1

WORKING CAPITAL MANAGEMENT

Chapter 3 3.1

RECEIVABLE MANAGEMENT

Chapter 4 4.1

INVENTORY MANAGEMENT

Chapter 5 MANAGEMENT OF CASH & MARKETABLE SECURITIES

5.1

Chapter 6 6.1

LEVERAGES

Chapter 7 7.1

CAPITAL STRUCTURE DECISIONS

Chapter 8 8.1

COST OF CAPITAL

I-5

3 4 . % 4 . / #

I-6

% ' ! 0

Chapter 9 9.1

CAPITAL BUDGETING - BASIC

Chapter 10 10.1

DIVIDEND POLICY

Chapter 11 SECURITY ANALYSIS & PORTFOLIO MANAGEMENT

11.1

Chapter 12 PROJECT FINANCE & TYPES OF FINANCING

12.1

PART B STRATEGIC MANAGEMENT Chapter 13 INTRODUCTION TO MANAGEMENT

13.3

Chapter 14 INTRODUCTION TO STRATEGIC MANAGEMENT

14.1

Chapter 15 BUSINESS POLICY & FORMULATION OF FUNCTIONAL STRATEGY

15.1

Chapter 16 STRATEGIC ANALYSIS & PLANNING

16.1

Chapter 17 STRATEGIC IMPLEMENTATION & CONTROL

17.1

Chapter 18 ANALYZING STRATEGIC EDGE

18.1

SOLVED PAPER : DEC. 2019 (NEW SYLLABUS)

P.1

SOLVED PAPER : DEC. 2020 (NEW SYLLABUS)

P.20

SOLVED PAPER : JUNE 2021 (NEW SYLLABUS)

P.42

SOLVED PAPER : DEC. 2021 (NEW SYLLABUS)

P.61

SOLVED PAPER : JUNE 2022 (NEW SYLLABUS)

P.82

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# ES EE S UUU AAL CCA E V YE BL LM EA A UUS NTE N I H T ET N T OVA CEL L LE L TI S O NWT O ES LG L I M WAR R T l SI I B E H RH 4A T S I S Y L A N A E C N E R E F F I D N I R 3O 0F %D 4E )S "U %I S NT !R A H C

" T O N N A C S T E K R A M T A H T ST E N VE I OC Rl PF SE I H E 4B $

Ignore taxation

` `

i.e.

` `

40.

` `

37.

` `

Ignore taxation.

35.

39.

36.

4 . % % ' ! . ! , ! ) # . ! . ) & ! 4 2 ! 0

7.6

PRACTICAL MCQs

3 . / ) 3 ) # % $ % 2 5 4 # 5 2 4 3 , ! 4 ) 0 ! # ( #

L A T I P A # E R A H 3 Y T I U Q %

S E R A H S E R O R #

S E R A H S E R O R # S E R A H S E R O R # S E R A H S E R O R #

RE OH F 4 E T NB L AI L P S A E WF EE SNR D A EFS EON A N L N OP YI NT O ACW U PR T MT G OSN CNI O W !CO L EL O HF T

F RO RE OP SA EG R U N I T N R TE A E AB ESEB UEDN R O SA I S H T I A T YS N S AY I E T R ME I MU T YQDON NENNI A AEF D PY O E R R MAA E T NH OI A #D S R

! " # $

T N I O P E C N E R E F F I D N I E T A L U C L A #

S E R A H S E R O R #

S I E T A R X A T E M O C N I E T A R O P R O #

S E R A H S E R O R #

! " # $

S E R A H S E R O R #

E GR NA I N S I E A R T O B OR R# O F S E F VO I TT N A O NNI RUT O E A T R M L A E D GAI E NT S I I N C S O NI U C AQ NE R I E RD & EN HU T

RE OH F 4 T E N L B AI L P S A E WF EE SNR D A EFS EON A N L N OP YI NT O ACW U PR T MT G OSN CNI O W !CO L EL O HF T

E R A H S R E EP U S S I YT AA S ME R YA NH AS Y PT I MU OQ #E

ET RA AE S H S R R A H E PS E E C U N S E S I R E TF YA E ASR ME P R YA NH AS Y PT MI D U OQ N #E A

E S EY N M E I R CE BU S I E R V NINU PE AMES P R S TO CEX I R E KF SPEER E EH A R UTA A SFMF HS HT SI IOGO YWEGNS N T I D I RRIL A E C U U A ED HI R QP R C E % 3POO RT U R H S PS ENT CD I AN OEE SNR TEU I A A RNH I O A D S PTS L E L U W U AMS SFSOE E S OACRN I

TAXMANN®

E R A H S R E EP U S S I YT AA S ME R YA NH AS Y PT I MU OQ #E

S RNTEEG H E N CEOERRI R N A A D S L A A I H I S HENR N A E S UAISR V P W A T A OM Y S LEH T U I LO R SNSO U FA QO CEYYF R E SNRE T I D EVU EMAI U E C S UI E EIEQUE E SM R S R SO S URO I YS SPF ENS R T NI# OREI E P T P A E K MB DAXER ETEHA DA ETMFWO I RUF OOTF C EASO S O DPS G (DE D I N E G E R I S EN C L EDI U A N R I U RCEQ C A U W AI O SE HROR N F3 TO S PTPI Rl )

! " # $

E GR NA I N S I E A R T O B OR R# O F S E F VO I TT N A O NNI RUT O E A T R M L A E A D GE I NT S I I N C S O NI U C AQ NE R I E RD & EN HU T ! " # $

45.

Alternative I: ` `

DF EO R I E U C QN EA R N El R A G SI N E L R I A A HV SA YR T I O U F Q ED E YU E NS R AS O MIR E# WB OO (T

T D S SE E ER R Y UO E T T L N N P IEM B SE T E FI A $ L O G T N I TI P l T A OE RENC PMON O AR N ST E R NF U RA T A E E R M Y FE T NUOA ANYL T PNI U L I C MAB L R OE A A# I #P L

ii `

43.

i `

44.

S T E S S ! T N E R R U #

42.

RYN A E BI D YDE WREA T N OEI C RPT A I R TB D OS N E BR OI TS OE T TNM DNUR EIOE DF T M O E I RI V C EAA ET T E A DA CPN YRNTR N AAE A LEL T A U P B A S MTES T I S OAH R CET E l R R EO D A E HR NH H 4#AS T

S G N I N R A % D E N I A T E 2

WF OO RT E R OA BR N A C YT NA AT PN MU OO R #MA AE EY T R I E S I P U T QS EE R R E ET HN T I

S R A L U C I T R A 0

Alternative II:

7.7

TAXMANN®

T B E $

S A S I N A O L O T E L B A C I L P P A B A L S T S R E E R E D T N N U )

A P

O T P U N A O ,

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EDE H H ET T T C F F EI OP EXE R E R A A S HSHD SISE H AE AC C I X FH E O W S E OG C T N I I R P NW O WR TSO E R KIDO RY B E N A T AME MP K OR EMCA HOOM 4C T

E T A R X A 4

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E U S S I T B E D G N I N I A T N O C ) ) ) N O I T P F /O

! " # $

E R A H S R E P

47.

E R A H S R E P

` `

E R A H S R E P

HEENSEET CSLI HTEM I A K I U H SRTR RH E l O D A TWR O WO PMT EUENR A 1NR G UTH OLN N A DST I ETA#T NEC D O BH T P AOU R T E O RD O 0DT EC " HC S0S M L TA S A ES E I RTT R T lPI E A E U M P T L T OCA R AU WXC C R l C U TES R F LE A N ELT T O S I A #E S O R S I CN L A 4T HS I I I T EN T A)A TE " T Z R F H E EB I I L OT HDESP%A E S O T 4IDAAEI I UP YHCVP EN L XA Y SAAA R T HCTV( A1I A

E R A H S R E P

49.

AOYGE EYYOEEFO F O O L R T T H HTT H T NT RTNI A IN 4 U E D ODAZ P E M T S I E Q F E DE ED S EPM U R A R T T C O M N R C R C O N IN A O GU E OX E F EU H P C AA NCPF H T I N HC XEMl F USXE T CY I E S EHF O H DRIN SS S 4O T OT I S ANEHA E I STB YRIE DAV7P T ESE BATS E O M I F A H N V ND ES W O T TC I A SL OG S O E SUNSO CI C R S A P T B N R E I R T D E RC Y P I I J A O S C S U O OI L B SU HN I XB DI QH O A CA E E4 O N AP FE R E EH R N A T E B M H S Y I A OT S A T N B O 4 D O R N D O S N H T G T I#A T EAT A)R N " ,L X E E C P T T E W I AC CS ) T %D C GN OSU -PDI N E NENI W S3J ARILRD EA L R N C L N A O L L E EOU EI HN O0RRA HE NY 4l C%POBS SDBF

Proposal

` `

! " # $ E T A R A G N I R A E B E R A HD SN RE E D PV I I D F O ! " # $

` `

H T O B R E D N U 3 0 % T N I O P T N E EB R L E L F I F W I D S NN I A TL !P `

46.

` S I E T A R X A T E M O C N I E T A R O P R O # `

48.

unlevered

firm

4 . % % ' ! . ! , ! ) # . ! . ) & ! 4 2 ! 0

7.8

3 . / ) 3 ) # % $ % 2 5 4 # 5 2 4 3 , ! 4 ) 0 ! # ( #

E R A H S R E P

E R A H S R E P E R A H S R E P

S T E S S A L A T O T F O

G N I S U Y T I U Q EH FC O A EO R UP L A VP TA E ) K. R A ME M EO T A C L N U ) CT L E A #.

! " # $

S E R U T N E B E $

S T E S S ! L A T O 4

S T E S S A L A T O T F O L I .

E T A R N O I T A Z I L A T I P A #

E T A R X A 4

4 ) " %

T B E $

! " # $

G N I S U Y T I U Q EH FC O A EO R UP L A VP TA E ) K. R A ME M EO T A C L N U ) CT L E A #.

! " # $

0 R O F E L B A L I A V A S I A T A D G N I W O L L O & D T ,

54.

S T E S S ! L A T O 4

GEEEDEGNG4Y L R CU ERI N)N NI OI NB I "A I IR TD T TGOT ATPNNFAP %P R N E P L E M M A TEABI H P VE T D C O ES C I C KNX MNR TDU T I ON E E I EOA E D C T R A O T E H N -NBA RS 4 T O LRDEE E O " E L I NTRR K C H F A A C W%AA C H S A A N D OS I 0 R O I N E O B FT T I O A X D T BS RRP A F E E S M S ,O I ST R G BE T I AA N MDO AN DHHNI T E O N HOFNTSI RURS I D O T . PS O T A E ON BE PE L RS T H D M !E T VDEI E RUN V H E O O C NNT ORDR I I MI OOFR R OEP SP S AI CBOPF R I

T B E $

S T E S S A L A T O T F O

E T A R X A 4

E R A H S R E P

4 ) " %

EN RO I 0T P IM E D E ER CT I S R O P0 TI E I K RD AN MA N O EI T T A P L M U CE L D A E #R

TAXMANN®

R O F E L B A L I A V A S I A T A D G N I W9 Y ON L L A O &P M O # `

53.

G N I TM N I U O S PS A E C4 N) E" R % E F F F O I E D LB NE I O VT EEX L HT A T T A HE ET T T A A TR L A O U P C3R L 0O A #%C

E T A R N O I T A Z I L A T I P A #

E T A R X A 4

S E R A H 3 E C N E R E F E R 0

4 ) " %

S E R A H 3 Y T I U Q %

T B E $

S E R A H 3 Y T I U Q %

E V O B A E H T F O E N O .

S T E S S ! L A T O 4

) ) ) L A S O P O R 0

O G T I N S C T N N HA AC N WIl H WG D N T I RW ,O F O ET L L R CO A D WE&N J TO A D F R H O E PR 3 I T A A U ETQ E NN R EA I R L E Y SS KMI N E O 3L S I PHT K P MA O IL

51.

) ) L A S O P O R 0

R O F E L B A L I A V A S I A T A D G N I W8 Y ON L L A O &P M O #

) L A S O P O R 0

52.

! " # $

` Option 2:

" # $ T EN L B I O AP T l OS RR PE D L TO S OH E MR A SH I LS A SM OO PR OF R PL A S HO CP I W H O E RI 7P V

Option 1:

` `

` 50.

` `

7.9

T P O D A S E I N A P E MC OR I CP HG TN O I L L BE NS EE HM A 7S

L I .

4 ) " %

S T E S S A L A T O T F O

E T A R X A 4

E T A R N O I T A Z I L A T I P A #

! "

H T O B R O F E M A S S I S EE T I A N R A XP AM T NO EC HE H 7T

S YI L L A R T E O H T T SOY I T DI YNU NAQ ATE PB Y ME B ODE C C YN EBA N N ODl EY NCL L ENA A HN T O 7l T

F)DHEI S O/E T ME I T T E.CWUA E S U P S R L E ! X A N VHE O T E I T T N U R A A E L Z KE FA I L RDSOVA ANA TT H E E I MU M KP M R A EYROAC HTlC L L TI NMA U I E T R SQHGB E 4 I E N EV I T A DO TNH A FE HOCRO E A H T P 7MO MRO T P T A H OPE CAN T

59.

EDE G UNL U)N L I A /T A A . C VHV E CLEL LA A A E O T RTMS O O POC T Y PTN B SAS) E E T )TGM A A .L I NH L U I U T CEL CA L MARP A COCELN C PEO N9/(I 8) T T P H YTYE NEN.CO T A.A AC ROE RPE PE RR MDP MD R ONONPO #U#UAC

! " # $

LOEDE A TUNV I LAA C A E NL V8H ABT S NAE E YI I NN K T & RAA O A PP GNM MM NI SL I Y AOO DTT#C C O RH UE T O J TB T S NFOS T TUEEBE NSHMFS ETWAIS DNDS9A L UEN E A YT TMA HN S T E T O AT S GR EP !A B E E ND LMM L AN OA I -U W#S

L SSTW EENA O E T A R EI T I A R NE T VP R A TDN E EA T HBI R S E O SED KC E A D H T O R EW M4 SE R OR DN T T BE NlGGEI ES DENNEE C I HE SNHIU OHT H A ATCS R4I ST H FNI SP A O TN G SN N Rl R GEKAE IE E NHCHES O T I DDDTR GT7WN S T NNNBE N A O U I F EI ED I T L OD T S Y ISO BP F U S 4 S #TL FN )O DE TUA O R A S"R E NOONA I R % I ECAH KG T A U FT TSB SB HCIVI O O R O C "T OR/E ELU D E S P% D EP VT R FH F NE O S TA#O OL GH NC I A S O UR P P A ) / . E M O C N ) G N I T A ER T E A P L U / CT L E A #.

! " # $

T B E $

56.

DNFA L YER R T NIOU E I OV ASNN U F I E QE YON R I EBO L A NI L SF L AM LG A P S N I NI M YO AN T A SR I A Y I UC R E L QE R A ND EHGAE OEF 4NCH T F I I C O U O TE TT S SA A T J S S E S NO HI I X O RR T ACSFTA E P O R I T T SD TE H A N SP N A ) S T 7 N EA H E ET T AR DA TRRCAN O AH S X U SO E R ARD P P 4TRCT E M E NU EEO T HH RN O HBC 4T lI T

S T E S S ! L A T O 4

1 R O F E L B A L I A V A S I A T A D G N I W O L L O & D T ,

l E R A S E I Y N L AN PO Y MT I OU CQ HE T Y O BB D E NC EN HA 7N

! " # $

total value of the firm

the firm

levered value of

55.

total value of the firm

# GH NC I A S O UR P P A ) / . E M O C N ) G N I T A ER T E A P L U / CT L E A #. `

57.

E T A R N O I T A Z I L A T I P A # `

58.

TAXMANN®

4 . % % ' ! . ! , ! ) # . ! . ) & ! 4 2 ! 0

7.10

3 . / ) 3 ) # % $ % 2 5 4 # 5 2 4 3 , ! 4 ) 0 ! # ( #

TS SN EI D HE IO T TOH NAPT OREE XC M EA NE L T EV B AERI T E T YA F A AR F I N PO D R PN E TR T S L OIA E E #H R E O T T A W N E I T P T A E F L G O H N U T I C E L C NN T SA EA A I R S#EN T W EB Tl HE E F 4D BO

35.

" $ # " " ! " #

28.

34.

$ $ $ # " " # " #

27.

" $ ! # $ # " $ "

7. 6.

TAXMANN®

! " # $

62.

$ $ # # ! ! " ! !

61.

$ $ " # $ ! $ " #

60.

" # " # $ " ! ! #

59.

" $ # # # " ! " $

58.

57.

` S EH I UC98E I L OR YT A H U V NT T TWAC P C E EU KKMP R RCO SS T O A E T C R L MS RY A LNER T I A AH P T OTEA O O V L T C E F N EO S ! N HS T I I T T T L FS A A I O S H CT DN I FT RO T I P CONE H T TEC S D EDOIX T C N, S E I / A 8 SD D A TT FH ,, O

56.

55.

54.

53.

52.

51.

50.

! " # $

49.

48.

47.

46.

45.

44.

43.

EYSYEE L E T T R A HI I R T AUI L 4U U A U P QT QUV A T ENEON C DE 9 S F B N E O A E R R T DM T S B R UO l # E C FD E I L F O S L H I O A ST 4E E R A T )S EU E HDT "U NA V %S MA RP/ M SE A I KR NOI HAl OC ME I OM T D H T A T Y4 Z , R Dl N I , E L L A R 0 A A E I PT T H U I ) I M T P P QF OAFAE O CCOCR O I T A R Y T I U Q E T B E $ B E V I T A N R E T L !

42.

41.

40.

39.

38.

37.

36.

! " # $ E C N A N l Y T I U Q E A E V I T A N R E T L !

14. 13. 12. 11. 10.

62.

21.

20.

19.

18.

17.

` 61.

5. 4. 3.

` `

I T FNS O OC R F E E L SI E I L L I H E Y-R T T I DXE U AB QNT A EI D DL FN NU O TAAO I L S NW G OI O TD CD I A T SO T H A T I XW, D-A 8 NOTLF ATDA O T GE I YN Y R P T IO T ID AI U N U QRGCQ O T I EC E B LCEE F L !WDO A

33.

32.

31.

30.

29.

TE T) C H E T J O G R N P I C A N P A U N G l N N F I T O I T E S YE S AV ST L I I T UA D O T N ,LR A E AT T T I S HP L O A SA C E NCOT C AAWE 'HTJ S O T I A R WH P 60.

26.

25.

24.

23.

22.

# $

` `

9. 8.

16.

15.

2. 1.

7.11

Answers:

Particulars

Verification:

R E P E M A S E B L L I W N O I T P O H T O B R E D N U 3 0 % S S H H K K A A , , F 4 O ) 4 " )

R E D L O H E R A H S Y T I U Q E O T E S L E B R A A L I H A S V Y A I T T U l T S E O Q R R E E X 0 F T A O N 4 4 4 4 3 ) ) " ! O 0 " % 0 . % %

4 ) " %

Plan II

Plan I

Particulars

i.e. ` `

" E R % %A T H

Present Capital structure:

T . ) 4 ) " %

E T B 4 ) . ) " % 4 E ) H " T % T E

) ) N A L 0 ) N A L 0 N E E W T E B T N I O P T N E R E F F I D N I F O N O I T A L U C L A #

N A O ,

Plan II Plan I L A T I P A # E R A H 3 Y T I U Q %

TAXMANN®

40.

x x

41.

4 . % % ' ! . ! , ! ) # . ! . ) & ! 4 2 ! 0

7.12

HINTS FOR IMPORTANT PRACTICAL MCQs

Figures in lakhs

3 . / ) 3 ) # % $ % 2 5 4 # 5 2 4 3 , ! 4 ) 0 ! # ( #

S E R U T N E B E $

4 ) " %

D E Y O L P M % L A T I P A #

% # / 2 D E Y O L P M % L A T I P A # N O N R U T E 2

S E S N E P X E E U S S )

S D E E C O R P T E .

E R A H S R E P E C I R P E U S S )

S E R A H S E R O R

TAXMANN®

No. of equity shares to be issued under each Option:

S E R A H S E R O R #

) ) E V I T A N R E T L !

S E R O R # N I S E R U G I &

# E C N A N l E E R R W O O R R E # # N R O F E R U T C U R T S L A T I P A # ) E V I T A N R E T L !

S E S N E P X E E U S S )

S D E E C O R P T E .

T B E $

M U I M E R 0 S E I T I R U C E 3

L A T I P A # E R A H 3 Y T I U Q %

T . ) 4 ) " %

E T B 4 ) . " ) % E 4 ) H " T % T E

S G N I N R A % D E N I A T E 2

L A T I P A # E R A H 3 Y T I U Q %

44.

Alternative I Alternative II

Per share

Particulars

7.13

42. & 43. Calculation of net proceeds per share:

R E P

R E P E I E M A S E B L L I W N O I T P O H T O B R E D N U 3 0 % F 4 O ) 4

` ) " " E % R %A TH !

X 4 A ) 4 4 " ! % 0

Y T I U Q E F O E U L A 6

4 ) " %

48. Value of unlevered firm (P Ltd.):

@ E

T . ) 4 ) " % P

TAXMANN®

E I E M A S E B L L I W N O I T P O H T O B R E D N U 3 0 % x B T 4 ) " . % ) E 4 H ) T " T % E ,

` `

F O 4 ) "E R %A TH !S

4 ) " %

47.

x x

45.

4 . % % ' ! . ! , ! ) # . ! . ) & ! 4 2 ! 0

7.14

E T Y A T R I U N Q O E E T I T A F A R O Z I N E L O A U T I L T T I A S A P E Z V A I R T # L E E A X T T K 4 A I N 4 4 R ! 4 P ) " ! A A 0 % 0 # -

3 . / ) 3 ) # % $ % 2 5 4 # 5 2 4 3 , ! 4 ) 0 ! # ( #

ED HI E T L P FI O T L TU A HM T T DB EE ED C XS EM R Dl L U D OE R WE V ME RL lE H DT EO R T E L VA EU L Q FE O T EN UU L O A VM EA HN T A Y -B - E MT ORA T lR G X NDA E I T R D E E RV H OE T CL CN Y !UB E U L A 6 L A T O 4 E T A R X A 4 T B E D F O E U L A 6 M R l D E R E V E L N U F O E U L A 6

Value of the company with ` 8,00,000 in debt (Q Ltd.):

S E R A H S S E R A H S

) ) ) L A S O P O R 0

) ) L A S O P O R 0

S E R A H S

) L A S O P O R 0

) ) L A S O P O R 0

4 ) " %

D E S I V D A S I Y N A P M O C E H T ) ) L A S O P O R 0 R E D N U T S E H G I H L A SS I S O 3P E R 0O A %R H P S ES CI Y T NT H I I T U 3 S H Q E T E R I E X F W T A O N 4 4 3 O 4 ) G " ! O 0 O % 0 . % T

Analysis:

TAXMANN®

) ) ) L A S O P O R 0

T . ) 4 ) " %

50.

III

Particulars

7.15

49. No. of equity shares to be issued under each proposal:

Interest expenses for various proposals:

Financial & Strategic Management (FSM/FM & SM) |CRACKER AUTHOR PUBLISHER DATE OF PUBLICATION EDITION ISBN NO NO. OF PAGES BINDING TYPE

: : : : : : :

N.S. Zad TAXMANN June 2022 6th Edition 9789356221390 370 PAPERBACK

Rs. : 410 | USD : 36

Description This book is prepared exclusively for the Executive Level of Company Secretary Examination requirement. It covers the questions (topic-wise) & detailed answers strictly as per the syllabus of ICSI. The Present Publication is the 6th Edition & updated till 31st May 2022 for CS-Executive | New Syllabus | Dec. 2022/June 2023 Exams. This book is authored by CS N.S. Zad, with the following noteworthy features:

· Strictly as per the New Syllabus of ICSI · Coverage of this book includes Fully-Solved Questions of Past Exams, including:



Solved Paper: December 2019 | New Syllabus



Solved Paper: December 2020 | New Syllabus



Solved Paper: June 2021 | New Syllabus



Solved Paper: December 2021| New Syllabus



Solved Paper: June 2022 | New Syllabus

· [Arrangement of Questions] Topic-wise arrangement of past exam questions

· [Practical MCQs] with Hints · [Marks Distribution] Chapter-wise marks distribution · [ICSI Study Material] Chapter-wise comparison

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Taxmann's Financial & Strategic Management (FSM/FM & SM) | CRACKER