SFM V/S AFM

(COMPARISON-CA FINAL)
 SFM v/s AFM (Comparison-CA Final)

1. Financial Policy
ADVANCED ROLE OF CFO IN VARIOUS MATTERS INCLUDING VALUE
1 CREATION New Addition
2 STRATEGIC FINANCIAL DECISION-MAKINGFRAMEWORK No Change
2.1 Meaning of Strategic Financial Management No Change
2.2 Functions of Strategic Financial Management No Change
3 STRATEGY AT DIFFERENT HIERARCHY LEVELS No Change
3.1 Corporate Level Strategy No Change
3.2 Business Unit Level Strategy No Change
3.3 Functional Level Strategy No Change
4 FINANCIAL PLANNING No Change
5 INTERFACE OF FINANCIAL POLICY AND STRATEGIC MANAGEMENT No Change
6 BALANCING FINANCIAL GOALS VIS-A-VIS SUSTAINABLE GROWTH No Change
TEST YOUR KNOWLEDGE No Change

2. Risk Management
1 ADVANCED ROLE OF CFO IN VARIOUS MATTERS INCLUDING VALUE CREATION New Addition
2 STRATEGIC FINANCIAL DECISION-MAKINGFRAMEWORK No Change
2.1 Meaning of Strategic Financial Management No Change
2.2 Functions of Strategic Financial Management No Change
3 STRATEGY AT DIFFERENT HIERARCHY LEVELS No Change
3.1 Corporate Level Strategy No Change
3.2 Business Unit Level Strategy No Change
3.3 Functional Level Strategy No Change
4 FINANCIAL PLANNING No Change
5 INTERFACE OF FINANCIAL POLICY AND STRATEGIC MANAGEMENT No Change
6 BALANCING FINANCIAL GOALS VIS-A-VIS SUSTAINABLE GROWTH No Change
TEST YOUR KNOWLEDGE No Change
3 VALUE-AT-RISK (VAR) No Change
3.1 Features of VAR No Change
3.2 Application of VAR No Change
3.3 example No Change
APPROPRIATE METHODS FOR IDENTIFICATION AND MANAGEMENT OF
4 FINANCIAL RISK No Change
4.1 Counter Party risk No Change
4.2 Political risk No Change
4.3 Interest Rate Risk No Change
4.4 Currency Risk No Change
TEST YOUR KNOWLEDGE No Change

1. Risk Management

2. Advanced Capital Budgeting New Topic

3. Security Analysis

TOPIC
TOPIC NAME COMMENT
NUMBER
INTRODUCTION No Change
1 FUNDAMENTAL ANALYSIS No Change
1.1 Dividend Growth Model and the PE Multiple No Change
1.2 Economic Analysis No Change
1.2.1 Factors Affecting Economic Analysis No Change
1.3 Industry Analysis No Change
1.3.1 Factors Affecting Industry Analysis No Change
1.3.2 Techniques Used in Industry Analysis No Change
1.4 Company Analysis No Change
1.4.1 Techniques Used in Company Analysis No Change
2 TECHNICAL ANALYSIS No Change
2.1 Meaning No Change
2.2 Assumptions No Change
2.3 Principles of Technical Analysis No Change
2.4 Theories of Technical Analysis No Change
2.4.1 The Dow Theory No Change
2.4.2 Elliot Wave Theory No Change
2.4.3 Random Walk Theory No Change
2.5 Charting Techniques No Change
2.6 Market Indicators No Change
2.7 Support and Resistance Levels No Change
2.8 Interpreting Price Patterns No Change
2.9 Decision Using Data Analysis No Change
2.1 Evaluation of Technical Analysis No Change
3 DIFFERENCES BETWEEN FUNDAMENTAL ANALYSIS
No Change
AND TECHNICAL ANALYSIS
4 EFFICIENT MARKET THEORY (EFFICIENT MARKET
No Change
HYPOTHESIS)
4.1 Search for Theory No Change
4.2 Misconception about Efficient Market Theory No Change
4.3 Level of Market Efficiency No Change
4.4 Empirical Evidence on Weak form of Efficient Market Theory No Change
4.5 Empirical Evidence on Semi-strong Efficient Market Theory No Change
4.6 Empirical Evidence on Strong form of Efficient Market
No Change
Theory
4.7 Challenges to the Efficient Market Theory No Change
5 New
EQUITY RESEARCH AND TOOLS AVAILABLE
Addition
TEST YOUR KNOWLEDGE No Change
 4. Security Valuation

TOPIC
NUMBER TOPIC NAME COMMENT
1 OVERVIEW OF VALUATION No Change
2 RETURN CONCEPTS No Change
2.1 Required Rate of Return No Change
2.2 Discount Rate No Change
2.3 Internal Rate of Return No Change
3 EQUITY RISK PREMIUM No Change
3.1 Explanation of Equity Risk Premium No Change
3.2 Calculating the Equity Risk Premium No Change

4 REQUIRED RETURN ON EQUITY No Change

DISCOUNT RATE SELECTION IN RELATION TO CASH
5 FLOWS No Change
5.1 Concept of Nominal Cash Flow and Real Cash Flow No Change
5.2 Discount rate selection in Equity Valuation No Change
6 VALUATION OF EQUITY SHARES No Change
6.1 Dividend Based Models No Change
6.2 Earning Based Models No Change
6.3 Cash Flow Based Models No Change
6.4 Dividend Discount Model versus Free Cash Flow to Equity Model No Change
6.5 Enterprise Value No Change
6.6 Valuation of Rights No Change
7 VALUATION OF PREFERENCE SHARES No Change
8 VALUATION OF DEBENTURES AND BONDS No Change
8.1 Some Basics of a Bond No Change
8.2 Bond Valuation Model No Change
8.3 Bond Value Theorems No Change
8.4 Yield to Maturity (YTM) No Change
8.5 Bond Value with Semi-Annual Interest No Change
8.6 Price Yield Relationship No Change
8.7 Relationship between Bond Price and Time No Change
8.8 Duration of Bond No Change
8.9 Immunization No Change
8.1 Yield Curve No Change
8.11 Term Structure Theories No Change
8.12 Convexity Adjustment No Change
8.13 Convertible Debentures No Change
8.14 Valuation of Warrants No Change
8.15 Zero Coupon Bond No Change
8.16 Refunding of Bonds No Change
8.17 Money Market Instruments No Change
 New
9 ROLE AND RESPONSIBILITIES OF VALUERS Addition
New
9.1 Role of Valuers Addition
New
9.2 Responsibilities of Valuers Addition
PRECAUTIONS NEED TO BE TAKEN BY A VALUER New
10 BEFORE ACCEPTING ANY VALUATION ASSIGNMENT Addition
TEST YOUR KNOWLEDGE No Change

5. Portfolio Management

TOPIC
NUMBER TOPIC NAME COMMENTS
1 INTRODUCTION No Change
1.1 Activities in Portfolio Management No Change
1.2 Objectives of Portfolio Management No Change
2 PHASES OF PORTFOLIO MANAGEMENT No Change
2.1 Security Analysis No Change
2.2 Portfolio Analysis No Change
2.3 Portfolio Selection No Change
2.4 Portfolio Revision No Change
2.5 Portfolio Evaluation No Change
3 PORTFOLIO THEORIES No Change
3.1 Traditional Approach No Change
Modern Approach (Markowitz Model or Risk-Return
3.2 Optimization) No Change
4 RISK ANALYSIS No Change
4.1 types of Risk No Change
4.1.1 Systematic Risk No Change
4.1.2 Unsystematic Risk No Change
4.2 Diversion of Risk No Change
4.3 Risk & Return No Change
4.3.1 Expected Return No Change
4.3.2 Risk No Change
4.3.3 Measurement of Systematic Risk No Change
4.4 Portfolio Analysis No Change
4.4.1 Portfolio Return No Change
4.4.2 Portfolio Risk No Change
4.4.3 Reduction or Dilution of Portfolio Risk through Diversification No Change
4.4.4 Portfolio with more than two securities No Change
Calculation of Return and Risk of Portfolio with more than two
4.4.5 securities No Change
5 MARKOWITZ MODEL OF RISK-RETURN OPTIMIZATION No Change
5.1 Assumptions of the Model No Change
5.2 Efficient Frontier No Change
 6 CAPITAL MARKET THEORY No Change
7 SINGLE INDEX MODEL (SHARPE INDEX MODEL) No Change
8 CAPITAL ASSET PRICING MODEL (CAPM) No Change
8.1 Risk free Rate of Return No Change
8.2 Under Valued and Over Valued Stocks No Change
8.3 Advantages and Limitations of CAPM No Change
9 ARBITRAGE PRICING THEORY MODEL (APT) No Change
10 PORTFOLIO EVALUATION METHODS No Change
10.1 Sharpe Ratio No Change
10.2 Treynor Ratio No Change
10.3 Jensen Alpha No Change
11 SHARPE’S OPTIMAL PORTFOLIO No Change
12 FORMULATION OF PORTFOLIO STRATEGY No Change
12.1 Active Portfolio Strategy (APS) No Change
12.2 Passive Portfolio Strategy No Change
12.3 Selection of Securities No Change
12.3.1 Selection of Bonds No Change
12.3.2 Selection of Stock (Equity Share) No Change
13 PORTFOLIO REVISION AND REBALANCING No Change
14 ASSET ALLOCATION STRATEGIES No Change
15 FIXED INCOME PORTFOLIO No Change
15.1 Fixed Income Portfolio Process No Change
15.2 Calculation of Return on Fixed Income Portfolio No Change
15.3 Fixed Income Portfolio Management Strategies No Change
15.3.1 Passive Strategy No Change
15.3.2 Active Strategy No Change
There is change in
16 ALTERNATIVE INVESTMENT AVENUES the list
16.1 Real Estates No Change
16.1.1 Valuation Approaches No Change
16.1.2 Valuation of Real Estates No Change
16.2 Gold New Addition
16.3 Distressed securities No Change
Test Your knowledge Q42 added

6. Securitization

TOPIC
NUMBE
R TOPIC NAME COMMENTS
1 INTRODUCTION In the first line the word sending money has been removed
2 Concept and Definition RBI Definition has been added
BENEFITS OF
3 SECURITIZATION No Change
 From the angle of
3.1 originator No Change
From the angle of
3.2 investor Example of priority sector lending has been added in point 2
PARTICIPANTS IN
4 SECURITIZATION No Change
in investors the words they acquire a participating intrest has been
4.1 Primary Participants SUBSTITUTED with they are participating investors
4.2 Secondary Participants in obligors the word main source has been REPLACED with main root
MECHANISM OF
5 SECURITIZATION No Change
5.1 Creation of Pool of Assets No Change
5.2 Transfer to SPV No Change
Sale of Securitized
5.3 Papers No Change
5.4 Administration of assets No Change
5.5 Recourse to Originato No Change
5.6 Repayment of funds No Change
Credit Rating to
5.7 Instruments No Change
PROBLEMS IN
6 SECURITIZATION No Change
6.1 Stamp Duty No Change
6.2 Taxation No Change
6.3 Accounting No Change
6.4 Lack of standardization No Change
6.5 Inadequate Debt Market No Change
Ineffective Foreclosure
6.6 laws No Change
SECURITIZATION
7 INSTRUMENTS No Change
Pass Through Certificates
7.1 (PTCs) No Change
Pay Through Security
7.2 (PTS) No Change
7.3 Stripped Securities No Change
PRICING OF THE
SECURITIZED
8 INSTRUMENTS No Change
8.1 From Originator’s Angle No Change
8.2 From Investor’s Angle No Change
9 RISKS IN SECURITIZATION New Addition
Credit risk or
9.1 Counterparty risk New Addition
9.2 Legal risks New Addition
9.3 Market risks New Addition
10 TOKENIZATION New Addition
Applications of
10.1 Blockchain New Addition
 Risks associated with
10.2 Blockchain New Addition
10.3 Meaning of Tokenization New Addition
Tokenization and
10.4 Securitization New Addition
11 SECURITIZATION IN INDIA last second para and graph added
Test Your Knowledge No Change

7. Mutual Funds

TOPIC
NUMBE
R TOPIC NAME COMMENTS
1 INTRODUCTION MINOR WORDS CHANGES IN LAST LINES
1.1 Mutual Benefits MINOR WORDS CHANGES LIKE Capital market,regular,invest.
What is a Mutual
1.2 Fund? No Change
Who can invest in
1.3 Mutual Funds? No Change
How Mutual Funds
1.4 work for you? No Change
Should we invest in 2nd para word added at your own added, 4th para word buy fund
Stocks or Mutual REPLACED WITH invest through a mutual FUND, last2nd para words added
1.5 Funds? like multi bagger, nosediving
Evolution of Mutual
Funds REMOVED FROM NEW MODULE
CLASSIFICATION OF
2 MUTUAL FUNDS No Change
Functional
2.1 Classification Interval Funds heading added [explanation was there in old course also]
Portfolio
2.2 Classification No Change
2.2.1 Equity Funds No Change
2.2.2 Debt Funds New point Reinvestment Risk added , Gilt Funds explanation change
Index funds explanation change, international and offshore funds minor
words changes,sector funds example changes,Money Market Funds
2.2.3 Special Funds words Changes ,etc
Ownership
2.3 Classification last line changes
Direct Plans in
2.4 Mutual Funds Minor word Changes
3 TYPES OF SCHEMES No Change
3.1 Balanced Funds No Change
Diversified Equity Flexicap and multicap explanation changes ,dividend yeild funds options
3.2 Funds changes
Equity Linked
Savings Scheme
3.3 (ELSS) No Change
 3.4 Sector Funds No Change
3.5 Thematic Funds No Change
3.6 Arbitrage Funds Explanation Changes
3.7 Hedge Fund No Change
3.8 Cash Fund 2nd para changes
Exchange Traded
3.9 Funds No Change
Fixed Maturity
3.1 Plans No Change
ADVANTAGES OF
4 MUTUAL FUND Minor Explanation Changes, new point added -Convenience
DRAWBACKS OF
5 MUTUAL FUND Minor Explanation Changes
TERMS ASSOCIATED
WITH MUTUAL
6 FUNDS No Change
Net Asset Value
6.1 (NAV) No Change
Entry and Exit Load
6.2 in Mutual Funds Minor Explanation Changes
6.3 Trail Commission No Change
6.4 Expense Ratio 1st para TER word added, 2nd para scheme word added
6.5 Side Pocketing last line- low to added
6.6 Tracking Error No Change
EVALUATION OF
7 MUTUAL FUNDS New Addition
Quantitative
7.1 Parameters New Addition
Qualitative
7.2 Parameters New Addition
ROLE OF FUND
MANAGERS IN
8 MUTUAL FUNDS New Addition
Actively Managed
8.1 Funds New Addition
Passively Managed
8.2 Funds New Addition
ROLE OF FIIs IN
9 MUTUAL FUNDS New Addition
Test Your
Knowledge Q22 Removed from New module

8. Derivative Analysis and Valuation

TOPIC
NUMBER TOPIC NAME COMMENT
1 INTRODUCTION No Change
 2 FORWARD CONTRACT No Change
3 FUTURE CONTRACT No Change
PRICING/ VALUATION OF FORWARD/ FUTURE
4 CONTRACTS No Change
5 TYPES OF FUTURES CONTRACTS No Change
5.1 Single Stock Futures No Change
5.2 Index Futures No Change
5.2.1 Trading Mechanism in Stock Futures No Change
5.2.2 Purpose of Trading in Futures No Change
5.2.3 Marking to Market No Change
Advantages of Stock Index Futures Trading Vs. Stock Futures
5.2.4 Trading No Change
5.2.5 Uses/Advantages of Stock Index Futures No Change
6 OPTIONS No Change
6.1 Stock Options No Change
6.2 Stock Index Option No Change
6.3 Parties to the Options No Change
6.4 Premium for Options No Change
6.5 Types of Options No Change
6.6 Pay-off scenarios No Change
6.6.1 Pay-off for a Call Buyer No Change
6.6.2 Pay-off for a Call Seller No Change
6.6.3 Pay-off for a Put Buyer No Change
6.6.4 Pay-off for a Put Seller No Change
6.7 Comparison with Single Stock Futures No Change
7 OPTION VALUATION TECHNIQUES No Change
7.1 Binomial Model No Change
7.2 Risk Neutral Method No Change
7.3 Black-Scholes Model No Change
7.4 Greeks New Addition
7.4.1 Factors Affecting Value of an Option No Change
7.4.2 Delta No Change
7.4.3 Gamma No Change
7.4.4 Theta No Change
7.4.5 Rho No Change
7.4.6 Vega No Change
7.5 Exotic Options New Addition
7.5.1 Exotic Vs. Traditional Option New Addition
7.5.2 Types of Exotic Options New Addition
8 CREDIT DERIVATIVES New Addition
8.1 Collateralized Debt Obligations (CDOS) New Addition
8.1.1 Types of CDOs New Addition
8.1.2 Risks involved in CDOs New Addition
8.2 Credit Default Swaps (CDSs) New Addition
8.2.1 Main Features of CDS New Addition
8.2.2 Uses of Credit Default Swap New Addition
 8.2.3 Parties to CDS New Addition
8.2.4 Settlement of CDS New Addition
9 REAL OPTIONS New Addition
9.1 How Real Option is different from Financial Option New Addition
9.2 Valuation of Real Options New Addition
9.3 Type of Real Options New Addition
9.3.1 Growth Options New Addition
9.3.2 Abandonment Option New Addition
9.3.3 Timing Option New Addition
10 COMMODITY DERIVATIVES No Change
10.1 Necessary Conditions to Introduce Commodity Derivatives No Change
10.2 Investing in Commodity Derivatives No Change
10.3 Commodity Market No Change
10.4 Commodity Futures No Change
10.5 Commodity Swaps No Change
10.5.1 Types of Commodity Swaps No Change
10.5.2 Valuing Commodity Swaps No Change
10.6 Hedging with Commodity Derivatives No Change
11 WEATHER DERIVATIVES New Addition
12 ELECTRICITY DERIVATIVES New Addition
12.1 Electricity Forwards New Addition
12.2 Electricity Futures New Addition
12.3 Electricity Swap New Addition
13 DERIVATIVE MISHAPS AND LESSONS New Addition
13.1 Orange County’s Case New Addition
13.2 Barings Bank’s Case New Addition
13.3 Protector & Gamble (P&G) and Gibson Greetings’ Case New Addition
13.4 Lessons from Derivative Mishaps New Addition
13.4.1 Don’t buy any derivative product that you don’t understand New Addition
Due diligence before making Treasury Department as a Profit
13.4.2 Centre New Addition
13.4.3 Specify the Risk Limits New Addition
13.4.4 Separation of Front, Middle and Back Offices New Addition
13.4.5 Ensure that a hedger should not become a speculator New Addition
13.4.6 Carry out Stress Test, Scenario Analysis etc New Addition
Test Your Knowledge No Change

9. Foreign Exchange

TOPIC
NUMBE
R TOPIC NAME COMMENT
 Illustration 1 is added spot and forward market explnation is
1 INTRODUCTION added which was earlier in topic 5
ROLE OF SWIFT IN FOREIGN
2 EXCHANGE New Addition
NATIONAL AND
INTERNATIONAL PAYMENT
3 GATEWAYS New Addition
NOSTRO, VOSTRO AND
4 LORO ACCOUNTS No Change
4.1 Exchange Position No Change
4.2 Cash Position No Change
EXCHANGE RATE
5 QUOTATION No Change
American Term and
5.1 European Term No Change
5.2 Direct and Indirect Quote No Change
5.3 Bid, Offer and Spread No Change
5.4 Cross Rates No Change
5.5 Pips No Change
Forward exchange rate
5.6 quotation No Change
Forward point
5.7 determination No Change
5.8 Broken period forward rate No Change
5.9 Merchant Rates No Change
EXCHANGE RATE
6 FORECASTING No Change
EXCHANGE RATE Old theory has been moved to introduction and new factors
7 DETERMINATION affecting exchange rate has been added
8 EXCHANGE RATE THEORIES No Change
8.1 Interest Rate Parity (IRP) No Change
Purchasing Power Parity
8.2 (PPP) No Change
International Fisher Effect
8.3 (IFE) No Change
Comparison of PPP, IRP and
8.4 IFE Theories No Change
FOREIGN EXCHANGE
9 MARKET No Change
FOREIGN EXCHANGE heading of types of exposure is removed but topic is still there
10 EXPOSURE and importance of forgein exchange risk mangment is added
10.1 Transaction Exposure No Change
10.2 Translation Exposure No Change
10.3 Economic Exposure No Change
11 HEDGING CURRENCY RISK 1st para PCFC FCNR added
12 FORWARD CONTRACT No Change
Forward Rate – Premium
12.1 and Discount No Change
 12.2 Fate of Forward Contracts No Change
Non-deliverable Forward
12.3 Contract No Change
Rollover of Deliverable
12.4 Forward Contract No Change
13 FUTURES CONTRACTS No Change
14 OPTION CONTRACTS No Change
15 SWAP CONTRACTS No Change
15.1 Interest Rate Swaps No Change
15.2 Currency Swaps No Change
15.3 Commodity Swaps No Change
15.4 Equity Swaps No Change
POPULAR DERIVATIVE
16 PRODUCTS New Addition
16.1 Forward Importer New Addition
16.2 Forward Exporter New Addition
16.3 FX Call Option New Addition
16.4 FX Put Option New Addition
16.5 IRS USD Floating to Fixed New Addition
STRATEGIES FOR EXPOSURE
17 MANAGEMENT No Change
17.1 Low Risk: Low Reward No Change
Low Risk: Reasonable
17.2 Reward No Change
17.3 High Risk: Low Reward No Change
17.4 High Risk: High Reward No Change
18 CONCLUSION No Change
Test Your Knowledge No Change

10. International Financial management

TOPIC
NUMBE
R TOPIC NAME COMMENTS
1 INTERNATIONAL CAPITAL BUDGETING No Change
1.1 Complexities Involved No Change
Problems Affecting Foreign Investment
1.2 Analysis No Change
1.3 Project vis-a-vis Parent Cash Flows No Change
1.4 Discount Rate and Adjusting Cash Flows No Change
1.5 Adjusted Present Value (APV) No Change
1.6 Scenarios No Change
2 INTERNATIONAL SOURCES OF FINANCE No Change
Foreign Currency Convertible Bonds
2.1 (FCCBs) No Change
2.2 American Depository Receipts (ADRs) No Change
 2.3 Global Depository Receipts (GDRs) No Change
2.4 Euro-Convertible Bonds (ECBs) No Change
Euro bonds 1 explnation has been removed in the
2.5 Other Sources old sm the heading was given twice
INTERNATIONAL FINANCIAL CENTRE
3 (GIFT CITY) New Addition
3.1 Benefits of IFC New Addition
3.2 Constituents of IFC New Addition
GIFT City - India’s International Financial
3.3 Services Centre New Addition
4 SOVEREIGN FUNDS New Addition
INTERNATIONAL WORKING CAPITAL
5 MANAGEMENT No Change
5.1 Multinational Cash Management No Change
5.1.1 Accelerating Cash Inflows No Change
5.1.2 Managing Blocked Funds No Change
5.1.3 Leading and Lagging No Change
Minimising Tax on Cash Flows through
5.1.4 Transfer Pricing Mechanism No Change
5.1.5 Netting No Change
5.2 International Inventory Management No Change
5.3 International Receivables Management No Change
Test Your Knowledge No Change

11. Interest Rate Risk Management

TOPIC
NUMBER TOPIC NAME COMMENT
1 INTRODUCTION No Changes
2 BENCHMARK RATES New Addition
3 INTEREST RATE RISK No Changes
3.1 Types of Interest Rate Risk No Changes
3.1.1 Gap Exposure No Changes
3.1.2 Basis Risk No Changes
3.1.3 Embedded Option Risk No Changes
3.1.4 Yield Curve Risk No Changes
3.1.5 Price Risk No Changes
Net investment risk point removed in New
3.1.6 Reinvestment Risk Module
3.2 Measuring Interest Rate Risk Last Para removed in New Module
4 HEDGING INTEREST RATE RISK No Changes
4.1 Traditional Methods No Changes
Asset and Liability Management
4.1.1 (ALM) No Changes
4.1.2 Forward Rate Agreements (FRAs) No Changes
4.2 Modern Methods No Changes
 4.2.1 Interest Rate Futures No Changes
4.2.2 Interest Rate Options No Changes
4.2.3 Interest Rate Swaps No Changes
4.2.4 Swaptions No Changes
Test Your Knowledge No Changes

12. Business Valuation

CHAPTER NAME FROM CORPORATE VALUATION TO BUSINESS VALUATION

TOPIC
NUMBER TOPIC NAME COMMENTS
1 CONCEPTUAL FRAMEWORK OF VALUATION No Changes
2 IMPORTANT TERMS ASSOCIATED WITH VALUATION No Changes
2.1 The Concept of PV (Present Value) of cash flows No Changes
2.2 The Concept of IRR (Internal Rate of Return) No Changes
2.3 ROI (Return on investment) No Changes
2.4 Perpetual Growth Rate (Gordon Model) No Changes
2.5 The term ‘TV’ (Terminal Value) No Changes
3 APPROACHES/ METHODS OF VALUATION No Changes
3.1 Asset Based Approach No Changes
3.1.1 Net Asset Value No Changes
3.1.2 Net Realizable Value No Changes
3.1.3 Replaceable Value No Changes
3.2 Income based Approach No Changes
3.2.1 PE Ratio or Earning Yield Multiplier No Changes
3.2.2 Capitalisation of Earning No Changes
3.3 Cash flow based approach No Changes
4 MEASURING COST OF EQUITY No Changes
4.1 Capital Assets Pricing Model (CAPM) No Changes
4.2 Arbitrage Pricing Model No Changes
4.3 Estimating Beta and Valuation of Unlisted Companies No Changes
5 RELATIVE VALUATION No Changes
6 OTHER APPROACHES TO VALUE MEASUREMENT No Changes
6.1 Contemporary Approaches to Valuation No Changes
6.2 Chop-Shop Method No Changes
6.3 Economic Value Added (EVA) No Changes
6.4 Market Value Added (MVA) No Changes
6.5 Shareholder Value Analysis (SVA) No Changes
7 ARRIVING AT FAIR VALUE No Changes
New
8 GOING CONCERN AND NON-GOING CONCERN VALUATION Addition
New
9 VALUATION OF DISTRESSED COMPANIES Addition
New
9.1 Modified Discounted Cash Flow Valuation Addition
New
9.2 DCF Valuation + Distress Value Addition
 New
9.3 Adjusted Present Value Model Addition
New
9.4 Relative Valuation Addition
New
10 VALUATION OF START UPS Addition
New
10.1 Why traditional methods cannot be applied? Addition
New
10.2 Value Drivers for startups Addition
New
10.3 Methods for valuing startups Addition
New
10.3.1 Berkus Approach Addition
New
10.3.2 Cost-to-Duplicate Approach Addition
New
10.3.3 Comparable Transactions Method Addition
New
10.3.4 Scorecard Valuation Method Addition
New
10.3.5 First Chicago Method Addition
New
10.3.6 Venture Capital Method Addition
New
11 VALUATION OF DIGITAL PLATFORMS Addition
New
11.1 Income Approach Addition
New
11.1.1 Discounting Rate Addition
New
11.1.2 Specific considerations Addition
New
11.2 Market Approach Addition
New
11.3 Cost Approach Addition
New
12 VALUATION OF PROFESSIONAL/ CONSULTANCY FIRMS Addition
New
13 IMPACT OF ESG ON VALUATION Addition
CASE STUDIES No Changes
Test Your Knowledge No Changes

13. Mergers and Acquisitions

TOPIC
NUMBER TOPIC NAME COMMENTS
1 CONCEPTUAL FRAMEWORK No Changes
2 RATIONALE FOR MERGERS AND ACQUISITIONS No Changes
3 FORMS (TYPES) OF MERGERS No Changes
4 FINANCIAL FRAMEWORK No Changes
4.1 Gains from Mergers or Synergy No Changes
 4.2 Scheme of Amalgamation or Merger No Changes
4.3 Financial Evaluation No Changes
4.4 Arranging Finance for Acquisition No Changes
5 TAKEOVER DEFENSIVE TACTICS No Changes
5.1 Take Over Strategies No Changes
5.2 Defensive Tactics No Changes
6 REVERSE MERGER No Changes
7 DIVESTITURE No Changes
7.1 Seller’s Perspective No Changes
7.2 Different Forms No Changes
7.2.1 Sell off / Partial Sell off No Changes
7.2.2 Spin-off No Changes
7.2.3 Split-up No Changes
7.2.4 Equity Carve outs No Changes
Demerger or Division of Family-Managed
7.2.5 Business No Changes
8 FINANCIAL RESTRUCTURING No Changes
9 OWNERSHIP RESTRUCTURING No Changes
9.1 Going Private No Changes
9.2 Management Buyouts No Changes
9.3 Leveraged Buyout (LBO) No Changes
9.4 Equity buyback No Changes
UNLOCKING THE VALUE THROUGH MERGERS & New
10 ACQUISITIONS AND BUSINESS RESTRUCTURING Addition
11 PREMIUM AND DISCOUNT No Changes
12 MERGERS AND ACQUISITIONS FAILURES No Changes
13 ACQUISITION THROUGH SHARES No Changes
14 CROSS-BORDER M&A No Changes
15 SPECIAL PURPOSE ACQUISITION COMPANIES No Changes
Test Your Knowledge No Changes

14. Start Up Finance

TOPIC
NUMBER TOPIC NAME COMMENTS
THE BASICS OF STARTUP Minor Words changes in 1st para and minor change in words
1 FINANCING of bootstrap bracket can be ignored
SOME OF THE INNOVATIVE
WAYS TO FINANCE A Minor Change in the explnation of factorining accounts
2 STARTUP recivable
3 PITCH PRESENTATION No Changes
4 CONCEPT OF UNICORN New Addition
MODES OF FINANCING FOR
5 STARTUPS No Changes
5.1 Sources of financing Just a additional heading
5.1.1 Bootstrapping Changes in trade credit
 5.1.2 Angel Investors No Changes
5.1.3 Venture Capital Fund No Changes
5.1.3.1 Venture Capitalists generally No Changes
Characteristics of Venture
5.1.3.2 Capital Financing New word -board seat in equity participation added
Advantages of bringing VC in
5.1.3.3 the company No Changes
5.1.3.4 Stages of funding for VC No Changes
5.2 VC Investment Process No Changes
VENTURE CAPITAL FUNDS IN
6 INDIA Converted from subtopic to main topic content is same
6.1 Evolution No Changes
Structure of Venture Capital
6.2 Fund in India No Changes
7 STARTUP INDIA INITIATIVE No Changes
SUCCESSION PLANNING IN
8 BUSINESS New Addition
Meaning of Succession
8.1 Planning New Addition
Why is there a need for
8.2 succession planning? New Addition
8.3 Business succession strategy New Addition
8.4 Challenges New Addition
Test Your Knowledge No Changes