The book is designed exclusively as per the requirements of CS Examination pattern as prescribed by ICSI. Each chapter covers, Problems & Solutions along with Multiple Choice Questions. The book is a comprehensive work, with lucid and systematic presentation for theory, practical questions & MCQs.
Preface to Fifth Edition
I assure you all that CS Executive students studying for “Financial & Strategic Management” paper from this book will come out with flying colours. I shall be grateful for any of your suggestion to improve the book further. I-7
The Financial & Strategic Management is one of the most important subjects of the CS Executive Level. The legal aspects of finance are becoming increasingly important and a Company Secretary is expected to successfully and effectively handle, amongst other things, important aspects such as management of public issues, syndication of loans, obtaining project approvals, raising of finance through public deposits and debentures or bonds etc. This requires expert knowledge of diverse and complex procedures involved. Realizing that the services of a Company Secretary could be of immense use in this important area, the “Financial & Strategic Management” subject is introduced by the ICSI in its syllabus for CS Executive Level. Many CS Executive students find this subject complicated and tricky as other subjects mainly focus on Acts, Rules & Regulations.
I am really thankful to my family members who have made lot of scarify for me and for their blessings and support in my career journey. I am also thankful to TAXMANN and their staff for their cooperation in presenting the book to students all over India. I thank you, one and all. N.S. Zad I-8
About the Author I-5 Preface to Fifth Edition I-7 Chapter-wise Marks Distribution I-9 PART A : FINANCIAL MANAGEMENT Chapter 1 1.3 Chapter 2 2.1 Chapter 3 3.1 Chapter 4 4.1 Chapter 5 5.1 Chapter 6 6.1 Chapter 7 7.1 Chapter 8 8.1 Chapter 9 9.1 I-11 Contents
Chapter 10 10.1 Chapter 11 11.1 Chapter 12 12.1 PART B : STRATEGIC MANAGEMENT Chapter 13 13.3 Chapter 14 14.1 Chapter 15 15.1 Chapter 16 16.1 Chapter 17 17.1 Chapter 18 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 I-12
TAXMANN® PROBLEMS & SOLUTIONS - BASIC 9.1 Capital Budgeting CHAPTER 9 PAYBACK PERIOD, NPV, ARR & IRR Problem No. 1] Year 1 2 3 4 5 Determine the following: iiiiiiivvvi Ans.: Calculation of CFAT: Year 1 2 3 4 5
9.2 ®TAXMANN Calculation of payback period: Calculation of NPV: Year CFAT PV Factor PV 10% 10% Calculation of IRR: Year CFAT PV Factor Present Value 18% 21% 18% 21%
9.3 TAXMANN® Year CFAT PV Factor Present Value 18% 21% 18% 21% Calculation of ARR: Calculation of discounted payback period: Year Present Value Cumulative PV Problem No. 2]
9.4 ®TAXMANN Year 1 2 3 4 5 iiiiiiivv Ans.: Calculation of depreciation under WDV method and net cash flow from disposal of machine at the end of 5th year. (Bal. Fig.) Calculation of CFAT: Year 1 2 3 4 5
9.5 TAXMANN® Year 1 2 3 4 5 Calculation of payback period: Calculation of IRR: Year CFAT PV Factor Present Value 12% 14% 12% 14%
9.6 ®TAXMANN Computation of ARR: Calculation of discounted payback period: Year PV CumulativePV Problem No. 3] (Rs. ’000) Cash Required:Flows:abcYear 0 1 2 3 4 5 PV Factors
9.7 TAXMANN® Ans.: Calculation of IRR: Project X: (Rs. ’000) Year CFAT PV Factor Present Value 10% 20% 10% 20% Project Y: (Rs. ’000) Year CFAT PV Factor Present Value 10% 20% 10% 20%
9.8 ®TAXMANN Ranking under various methods: Particulars X Y XRanking Y Analysis:Problem No. 4] Project X Project Y Ans.: Ranking under various methods: Particulars Project X Project Y Ranking Reason Project X Project Y
9.9 TAXMANN® Particulars Project X Project Y Ranking Reason Project X Project Y Problem No. 5] Required:iiiYear1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Ans.: Calculation of CFAT: Particulars Rs.
9.10 ®TAXMANN ProblemAnalysis: No. 6] (Rs. in lakhs) You are required to calculate: Note:ba Ans.: Calculation of CFAT: (Rs. in lakhs) Year A B
9.68 ®TAXMANN ` ` ` ` ` ` ` 212. Alpha Beta ` ` 213. ` ` ` ` ` ` 214. ` ` ` ` ` 215. ` Cost NPV PI ` ` ` ` ` ` ` ` ` ` ` ` 216. Cash Flow Probability
9.69 TAXMANN® ` ` ` ` 217. NPV (` in lakh) Probability 218. Project ExpectedNPV( `) i.e.deviationStandard 219. ` Machine X Machine Y CFAT: ` ` ` ` 220. NPV (` in Crore) Probability `
9.70 ®TAXMANN 221. NPV (` in Crore) Probability 222. ` Event Probability Incremental CFAT ` ` ` ` 223. ` ` 224. ` ` 225. ` ` 226. ` `
9.71 TAXMANN® 227. Year Running cost changeSavingsin level of plant cost 228. Year Running cost changeSavingsin level of running cost 229. Year Running cost changeSavingsin level of savings 231.230. ` ` Coefficient of Risk Adjusted Variation Rate of Discount
9.72 ®TAXMANN 232. ` in ’000 ` in ’000 Answers:1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. 51. 52. 53. 54. 55. 56. 57. 58. 59. 60. 61. 62. 63. 64. 65. 66. 67. 68. 69. 70. 71. 72. 73. 74. 75. 76. 77. 78. 79. 80. 81. 82. 83. 84. 85. 86. 87. 88. 89. 90. 91. 92. 93. 94. 95. 96. 97. 98. 99. 100. 101. 102. 103. 104. 105. 106. 107. 108. 109. 110. 111. 112. 113. 114. 115. 116. 117. 118. 119. 120. 121. 122. 123. 124. 125. 126. 127. 128. 129. 130. 131. 132. 133. 134. 135. 136. 137. 138. 139. 140. 141. 142. 143. 144. 145. 146. 147. 148. 149. 150. 151. 152. 153. 154.
9.73 TAXMANN® 155. 156. 157. 158. 159. 160. 161. 162. 163. 164. 165. 166. 167. 168. 169. 170. 171. 172. 173. 174. 175. 176. 177. 178. 179. 180. 181. 182. 183. 184. 185. 186. 187. 188. 189. 190. 191. 192. 193. 194. 195. 196. 197. 198. 199. 200. 201. 202. 203. 204. 205. 206. 207. 208. 209. 210. 211. 212. 213. 214. 215. 216. 217. 218. 219. 220. 221. 222. 223. 224. 225. 226. 227. 228. 229. 230. 231. 232. HINTS FOR IMPORTANT PRACTICAL MCQ s 141. Year CFAT CumulativeCFAT 142. Year CFAT PV Factor PV Cumulative PV
9.74 ®TAXMANN 144.143.145. Year CFAT PV Factor Present Value 146. Year CFAT PV Factor Present Value 12% 17% 12% 17%
9.75 TAXMANN® 147. x xx 148. Year CFAT CumulativeCFAT 149. (Given)
9.76 ®TAXMANN 150. Year CFAT PV Factor Present Value 12% 17% 12% 17% 151. Year CFAT PV Factor Present Value X Y 10% X Y 153. to 156.
Rs. : 895 | USD : 45 AUTHOR : N.S. Zad , Ashish Parikh PUBLISHER : TAXMANN DATE OF PUBLICATION : July 2022 EDITION : 5th Edition ISBN NO : 9789356221499 NO. OF PAGES : 740 BINDING TYPE : PAPERBACK Financial & Strategic Management (FSM | FM & SM) | MCQs ORDER NOW Description This book is prepared exclusively for the Executive Level of Company Secretary Examination requirement. Each chapter covers problems & solutions along with multiple-choice questions (MCQs). The Present Publication is the 5th 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 & Prof. Ashish Parikh, with the following noteworthy features:· Strictly as per the New Syllabus of ICSI · [Comprehensive, Lucid & Systematic] presentation of theory, practical questions & MCQs · [Coverage] of this book includes [2700+ MCQs] along with Problems & Solutions are covered in each chapter [Theory & Practical Based MCQs] with the following for complicated terms and mathematical calculations: Hints Working Notes Explanatory Notes [Fully Solved Questions of Past Exams] 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