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Sfm ca final old course exam.

Anisha Khandelwal (1 Points)

03 November 2019

Hey guys how did you find today's ca final sfm old course paper?

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21 Replies

Zoya Khan (ABC) (800 Points)
Replied 03 November 2019

Although I have not attended, but got reviews (and saw the question paper too) it was a bit different, that too bad wala different. I want to know more to gauge ICAI's approach for group 2

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Nupur Barua (44 Points)
Replied 04 November 2019

What was the exchange ratio in question related to mergers and acquisition?

akshay (ca) (32 Points)
Replied 04 November 2019

.595 it can be rouded off to .59 or .6 i think both is correct

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SUKET GUPTA (4 Points)
Replied 07 November 2019

So you mean to say the premium of 25% was considered.
i could not find such question asked in any of the exams before by any professional body.
being a question of 10 marks , very impactful while considering results

CA M.Rajni Parthasarthy-Nov19 (Working at Tambakad & Pujari) (330 Points)
Replied 07 November 2019

Q 6A Mergers......... 900000/150000 x14 = 84 & 240000/60 x 10 = 40

Given to consider 25% Premium on Mkt Price of XYZ = 40x25% = 50

84/50 = .5952 x 60000 = 35714 Shares

New EPS Total Shares of ABC Post Merger = 185714....Combined Income = 1140000/- So 1140000/185714 = 6.1384

Impact of Merger on EPS.... ABC increase by .13 paisa Per Share & XYZ Decrease by .35 paisa Appx

MPS if PE Remains Same i.e (PE of ABC Orginal @ 14) = 6.13 x 14 Appx 85.83 MPS

PD Declines to 12 then it will be 6.13 x 12 = 73.56 MPS

Hope you got the Detailed Answer... I worked it this way... Hope I am right

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CA M.Rajni Parthasarthy-Nov19 (Working at Tambakad & Pujari) (330 Points)
Replied 07 November 2019

Question 6B......... 1+015 / 1.006875 x 72.50 = 73.0850 Rate of $.. So $ at Premium

Expected rate of $ = 73.0850

Forward Rate Premium = 73.0850-72.5 = (.5850/72.5) x100 x 4 = 3.2275% on annualised basis

CA M.Rajni Parthasarthy-Nov19 (Working at Tambakad & Pujari) (330 Points)
Replied 07 November 2019

Question 5A........ 15/.94x100 = 15.95 = 2 = 17.95 % Reqd Returns by MF to give 15% net returns

Alex Earning 40Lkhs at 90% time utilisation So at 100% it will be 44.444 Lkhs ( Increase in Proff Income by 4.44 Lkhs)

He can Earn on Own at 15% on 50 Lkhs i.e 50x15% = 7.50 Lkhs

If he Invest into MF Multicap Fund he get 13% i.e 50 x 13% = 6.50 Lkhs

Now 6.50 MF Income

Additional Proff 4.44 Lkhs

Total 10.94 Lkhs

Less 7.50 his Earnings if he Manage his Portfolio on Own

So Net Gains 10.94 - 7.50 = 3.44 Lkhs

Hence Mr Alex should go for Multicap MF Investment

CA M.Rajni Parthasarthy-Nov19 (Working at Tambakad & Pujari) (330 Points)
Replied 07 November 2019

Q 5B Borrow $ 50000/101.5x100 = 49261.083 in USA ( this will equal to 50000 after 3 months when Repayment to be made)

Encash it in India at 72.65 x 49261.083 = Rs 3578817.678

Invest 3578817/- in India for 3 months @ (12% PA) Earn 35 for 3 Months you get Total 3686181.51

buy future $ 50000 @ 73.40 = 3675000/- Benifited at 36.86 - 36.75

After 3 months Convert Rs - $ 50000 @ Go Back to USA Refund

If rate is 73 - 73.42 than accordingly calculate earnings with 73.42 buying rate

CA M.Rajni Parthasarthy-Nov19 (Working at Tambakad & Pujari) (330 Points)
Replied 07 November 2019

My Friends I have written the Paper So I can say Paper was straight except for some 10 - 15 Questions Marks put you thinking Else other Questions were quite straight with a bit of reading 50 marks was Just straight..... See above I have given 32 marks Clear Answers... May be I am wrong than Pls correct my answers

CA M.Rajni Parthasarthy-Nov19 (Working at Tambakad & Pujari) (330 Points)
Replied 07 November 2019

3A (1) was also little tricky on GST issue but if read & understood than it was easily cracked... Calculate PV as per given Inflows & - 1000000/- is the first answer.. Here Project is not Viable NPV is -ve

Than Increase 8% in Inflows & Reduce 8% from outflow ( 10,00,000/-)

Here NPV is +ve

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CA M.Rajni Parthasarthy-Nov19 (Working at Tambakad & Pujari) (330 Points)
Replied 07 November 2019

Q 1C..... Missing Figure is at 350......

Compare Market to Book Value of other Comparable Verticals you will get 25 i.e 450/18 = 25...... 400/16 = 25 accordingly 14x25 = 350 So putting the missing figure question can further be solved.....

Here I have my own view of solving, Pls correct me if I am on wrong Fundamentals & Concepts of solution...

CA M.Rajni Parthasarthy-Nov19 (Working at Tambakad & Pujari) (330 Points)
Replied 07 November 2019

1A/1B/1D .... Hope dont need any answer to be given... hope all know how it could be done...

1 Like

CA M.Rajni Parthasarthy-Nov19 (Working at Tambakad & Pujari) (330 Points)
Replied 07 November 2019

So have given Q5AB & 6AB = 32 + Quest 1 of 20 Marks & 3A of another 8 Marks = 60 marks ( Keeping 1C on doubt - 5 Marks) 55 Marks are clear take Theory of 16 Marks was Simple take 10 marks

So Q 5 & 6 full & Q 3.. 60% Question you get atleast 42 Marks + Q 1 say worst case 12 marks as the Bond & Cap Budg were straight & simple & add another 10 for theory + 64 marks... Other Question you get even 5 - 8 marks it takes to 70... now take conservatism of 10% reduction than too 65 has to get....... So friend just Chill... who ever has done SFM even a bit nicely has to get exemption & his Aggregrate will be helped provided other subjects are gone reasonable in G 1 Old Sylbs.... My Exams are Over... G2 is cleared Just waiting to get G1 cleared.. Hope it cracks this time so 2020 will be CA

1 Like