SFM Guru

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Best Resources for Strategic Financial Management Students

Several students show increased interest in learning strategic financial management (SFM) these days. There are many online course providers available today that offer CA final SFM notes because of the excess interest of the ever increasing number of students toward this subject. SFM combines strategic management and financial management to help people adopt a more comprehensive approach. You can have access to all the financial criteria for making all management decisions. Generally speaking; SFM concentrates on two vital aspects and they include net present value and cash flow. If you learn strategic financial management, you can easily understand the role of accountancy in this ever evolving financially dynamic world.

SFM accommodates the evolving needs of the financial world

If you seek the help of a reliable online course provider that follows SFM CA final new syllabus, you can make your preparation for the exam extremely result oriented. The world is changing in a fast manner. The financial equations and concepts are also undergoing tremendous transformation. This fast evolving financial world keep son revealing the limitations of the conventional accounting models. SFM puts forward a new approach and it accommodates the varying needs of changing financial concepts and ideas. Various businesses are looking for people who have passed SFM CA final to make their financial operations and management more vibrant and up-to-date.

Important aspect that Best SFM CA courses teach

When you attend SFM CA final pen drive classes offered by trusted online platforms, you can learn how to make contributions in a constructive manner to business strategy by embracing an approach that is progressive and proactive in nature. These types of classes also teach you how to respond to conditions of fast change with proper awareness and anticipation. This is a very important aspect that all financial management experts need to know. Another important aspect that you can learn from SFM CA classes is to know how to monitor project strategies and success in an effective way. Students also come to know how SFM goes in complete harmony with an integrative model.  

Systematic preparation and highly useful study materials

If you depend on renowned online platforms that offer the best book for CA final SFM exam, you can make your preparation more systematic and effective. One of the remarkable aspects is that you can learn at your own pace without worrying about pressure from any external source. If you are a committed student, you can develop your own learning needs in an easy manner. The best study materials available always help you perform well in the examination. Reliable online course providers offer the most up-to-date study materials and other tools to help the students get high scores.

If you are on the lookout for an ever reliable online platform that helps you enhance your financial management knowledge and perform well in the SFMCA final exam, you can select SFM Guru. This platform provides the most updated study materials for students. Its YouTube channel also offers highly useful information for all people who want to learn strategic financial management.  

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How to Make SFM learning Enjoyable and Result Oriented?

Every student must understand that strategic financial management or SFM is not a tough subject. Systematic preparation and correct guidance has helped several students pass with flying colors. However, you can find several students complaining that SFM CA final syllabus is very difficult to deal with. Every subject has its own unique nature and proper planning is required to acquire the necessary skills to handle it with proper ease. If you are student preparing for the CA exams, you have to select the right materials to perform well in the examination.

 Use the right reference books and materials

There are reliable online platforms that offer the best guidance, training and course materials for SFM CA final new syllabus. It is necessary to use right reference books for the subject from the initial stage itself to avoid the getting confused during the final stage. Best online platforms facilitate easy understanding and they put forward a well thought out plan for the students to follow. Another benefit of using reliable platforms is that you can access loads of free information from these sites. Leading platforms also have their YouTube channel that provides quality information for the students.

 Depend on materials that have been designed by eminent experts

If you go through the websites of online CA final SFM notes providers, you can find various types of financial products that can be purchased at affordable prices. As mentioned above, these are also free materials available. All these materials are developed by eminent subject experts and a simple registration allows students to have access to this free resources.

 Importance of conceptual study and the best revision strategy

SFM can be described as a numerical subject. When you handle a subject of this nature, you should follow a conceptual study approach. If you don’t have conceptual clarity, you would often find strategic financial management as a very tough subject. This situation adversely affects your performance in SFM subject. Some experts advise students to follow a strategy that a heavy topic must be followed by an easy, small or light topic. Another aspect to keep in mind is that a good revision strategy is very vital in handling a subject like SFM. Without the correct revision strategy, it becomes almost impossible for you to recall SFM formulas and concepts in exam hall.  

 If you follow the right method of approach, you do not have to worry about SFM. Reliable online platforms offer everything that a student needs to perform well in examination. You can even make use of SFM CA final pen drive classes with best online platforms that make the preparation easy and result oriented. Do you want to identify the best platform that simplifies SFM learning? You can select SFM Guru to make your preparation highly systematic and effective. This site offers the most up-to-date course materials for SFM CA final exams that have been developed by eminent experts. The bottom line is that if you want to strategic financial management, SFM Guru is the best option available.    

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How to Get Access to Best SFM CA Final Materials?

The importance of strategic financial management (SFM) is extremely vital in CA examinations. In order to enhance their skills and knowledge in all areas, some students go to coaching centers. Today, many students are also depending on online courses and materials and these types of resources are more convenient than the traditional courses and coaching methods. If you want to learn about the SFM CA final syllabus and get the best coaching, you can definitely select a reputed online course and material provider. 

Spend some time to find out the most reliable online platform

SFM ca final new syllabus has incorporated some changes and all CA students must be aware of these changes to perform well in the exams. There are number online platforms that offer CA students training for improving their financial management knowledge, but you must select one that offers the most updated syllabus and coaching methods. You should be willing to spend some time for research to compare different platforms and sites. Internet is the best option available and you have to search online to collect information about different types of websites that offer course materials and training in financial management for CA students.    

How do reputed and leading online platforms operate?

This is an important aspect you need to know while searching for a platform that offers the best book for CA final SFM. Like in any other field, you can find different types of online training platforms for CA students and not all service providers offer the same types of services. The quality also differs and you have to choose the best one. Top online platforms offer free access to SFM related information from their websites. Some of the renowned sites have their own YouTube channel that also provides quality information for CA students. These types of platforms also display financial products that can be purchased online. These products are not restricted to CA students alone and anybody who wants to improve their knowledge in strategic financial management can buy these products at highly affordable prices.

Free materials available are highly beneficial

There are free study materials available and you can have access to these materials with a simple registration. When you enter your name, phone, email and location, you will be able to sing in and it allows you to have access to a wide range of information including CA final SFM notes. Leading sites describe it as free study zone and the quality of information available is really appreciable. Anybody, who wants to enhance their proficiency in strategic financial management, can make use of this zone.

Do you want to prepare well for your CA exam or want to improve your knowledge in strategic financial management? You can choose SFM Guru to have access to the best study notes and other types of resources for CA examination to make your preparation highly result oriented. This site offers free materials as well as paid materials and you can purchase the paid versions at highly affordable prices.  

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Adapt Simplified Approach Of Learning And Secure Respectable Marks In SFM

The road to becoming a Chartered Accountant is full of ups and downs. However, if you are SFM CA final student then you have become familiar with this fact. No matter how hard you try, still you don’t score well in subjects like Strategic Financial Management and financial reporting. Albeit financial reporting is a language of business and one who understands economic activities easily makes his/her way to the success but SFM is the detailed study of finance which is developed after keeping long-term strategic goals of an enterprise in mind. This is an overall plan concern financial managers, therefore includes production plan, sales plan, capital expenditure, personnel plan and others. Every plan has a financial suggestion for managers, therefore in order to satisfy objectives of a company, a CA must be acquainted with this outlines, definition, and directions of this planning.

Though, CA students face lots of trouble in preparing this subject for their examination because:-

· This subject comprises vast and detailed concepts, problems and SFM CA final syllabus

· Questions are uncertain

· Countless dedication and efforts are requisite

Don’t worry we have the quick remedy of this tension

Whenever you start studying emphasize more on concepts. If you do so, your vast syllabus will become manageable. Develop strong concepts rather than solving the problem, it is the key to success. But, this is nearly impossible without proper guidance, simplified learning, and appropriate CA final SFM notes. In order to cope up with this requirement, CA Nikhil Jobanputra is here with his effective, simple and quality E-learning material and video tutorials.

The Internet is full of resources but what makes this service provider the best?

Out of the box, thinking and elementary approach to teaching make videos tutorials effective for students. For more, it is not at all important for a student to pursue CA to take advantage of these quality resources. Any person who is interested in strategic financial learning can access the available resource on YouTube. Streamline learning is a habit which attracts attention. Further, it is something which makes SFM Guru a platform where one can get the solution to all financial management related problems. If anyone is interested in financial products then he/she can purchase it directly from the website.

Experience plays a vital role in making a faculty the best. CA Nikhil Jobanputra is renowned for his dedication, hard work and energetic delivery of video lectures. But, before entrusting on his capabilities, why don’t you get a free access to study material today.

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Clarification of basic terms

Do you know? (Refer Q.1 to Q.6 from Textbook)

● What is an Exchange Rate?

● What do you mean by Direct Quote?

● What do you mean by Indirect Quote?

● What do you mean by Two Way Quote?

● What do you mean by Bid Rate and Ask Rate?

● What do you mean by Spread?

 $ 1 = ` 65

● In the above quoted exchange rate:

● The quote is given for 1 unit of $.

● In this given quote, $ behaves like a commodity.

● For an entity in India, $ is a foreign currency.

● The given quote is for 1 unit of foreign currency.

● This is a Direct Quote.

● In a Direct Quote, 1 unit of foreign currency is expressed in terms of local currency.

 ` 1 = $

1

 65

 ● In the above quoted exchange rate:

● The quote is given for 1 unit of `.

● In this given quote, ` behaves like a commodity.

● For an entity in India, ` is a local currency.

● The given quote is for 1 unit of local currency.

● This is an Indirect Quote.

● In an Indirect Quote, 1 unit of local currency is expressed in terms of foreign currency.

 Note:

In order to classify a given Exchange Rate as Direct Quote or Indirect Quote one of the currencies in the quote must be the local currency.

 Direct Quote to Indirect Quote

Conversion of Direct Quote into Indirect Quote or Vice Versa

Inverse of an Indirect Quote will be a Direct Quote. Similarly, inverse of Direct Quote will be an Indirect Quote. However, precautions should be taken while converting Two-Way Quote from Direct to Indirect or from Indirect to Direct. In such situations consider the following:

1. Inverse of Bid Rate of a Direct Quote will become Ask Rate in an Indirect Quote.

2. Inverse of Ask Rate of a Direct Quote will become Bid Rate in an Indirect Quote.

For Example:

$ 1 = ` 48 – ` 50

 This is a Two-Way Direct Quote of $ for an Indian Company.

Given below will be an Indirect Quote:

 ` 1 = $

1

–

$

1

 50

48

 12

3

 Ask Rate: $ 1 = ` 50

● At ` 50, bank is willing to “Sell” $ 1

● Bank gives you $ 1 and takes ` 50

● Bank “Buys” ` 50 for $ 1

● Bank “Buys” ` 1 for $ 1/50

● Rate at which bank “Buys” has to be a Bid Rate

● ` 1 = $ 1/50, this is a Bid Rate for `

 Bid Rate: $ 1 = ` 48

● At ` 48, bank is willing to “Buy” $ 1

● Bank gives you ` 48 and takes $ 1

● Bank “Sells” ` 48 for $ 1

● Bank “Sells” ` 1 for $ 1/48

● Rate at which bank “Sells” has to be an Ask Rate

● ` 1 = $ 1/48, this is an  Ask Rate for `

 Appreciation & Depreciation (Premium & Discount)

● What do you mean by Spot Rate?

● What do you mean by Forward Exchange Rate?

● What do you mean by Forward Exchange Contract?

● What do you mean by Appreciation and Depreciation in case of Currency? (Refer Q.14 to Q.17 from Textbook)

Question

How do you compute Appreciation and Depreciation?

Answer

For this calculation, the numerator shall be difference between spot and forward rate and the denominator depends upon the quote informed.

 If the quote is given for the same currency whose premium or discount you are determining, the denominator will be Spot Rate.

 If the quote is given for the other currency, the denominator will be Forward Rate.

 To the rate determined above multiply the time factor, for example if the contract is for 3 months, then the time factor will be:

365

84

If the contract is for 84 days, then the time factor will be:

3

X 100 = 2.6086% p.a.

115

 Determining Rates of Premium & Discount

Question

Determine the Forward Premium and Discount Rate on annualised basis in the following cases:

1. $ 1 = ¥ 115 (Spot)

$ 1 = ¥ 112 (1 year Forward)

 2. $ 1 = ¥ 115 (Spot)

$ 1 = ¥ 114 (3 Months Forward)

 Solution

1. Depreciation Rate of “$”

3

X 100 = 2.6786% p.a.

112

Appreciation Rate of “¥”

1

X 100 X

12

= 3.4783% p.a.

115

3

 2. Depreciation Rate of “$”

1

X 100 X

12

= 3.5088% p.a.

114

3

Appreciation Rate of “¥”

1

X 100 X

12

= 3.5088% p.a.

114

3

 Fair Forward Rate & Arbitrage

  Where,

FFR = Fair Forward Rate

S = Spot Rate

iL = Interest rate (Local)

iF = Interest Rate (Foreign Country)

 Concepts of Swap Points or Forward Points

Example 1

Spot Rate:  $ 1 = ` 64.46

3 Months Forward Rate:  $ 1 = ` 64.76

It is obvious that $ is appreciating. The forward rate of $ is at forward point of 30. In other words, forward points (premium) = 30 points.

 Example 2

Spot Rate:  $ 1 = ` 64.1625

1 Month Forward Rate:  $ 1 = ` 64.1655

In the forward market, $ is quoted at premium of 30 points.

Example 3

Spot Rate:  £ 1 = $ 1.5650

2 Months Forward point (premium) = 5 points

Therefore, 2 months forward rate will be £ 1 = $ 1.5655

 Example 4

Spot Rate:  USD 1 = SGD 6.8580

2 Months Forward point (discount) = 15 points

Therefore, 2 months forward rate will be USD 1 = SGD 6.8565

 Example 5

Spot Rate:  USD 1 = HKD 7.8130 – HKD 7.8165

3 Months Forward point = 20/25 points

 Therefore, 3 months forward rate will be USD 1 = HKD 7.8150 – HKD 7.8190

 Example 6

Spot Rate:  USD 1 = HKD 7.8130 – HKD 7.8165

3 Months Forward point = 30/25 points

 Therefore, 3 months forward rate will be USD 1 = HKD 7.8100 – HKD 7.8140

 Note:

1. When Swap Points are quoted w.r.t. a Two-Way Quote, such Forward Points will be expressed in numerator and denominator form.

2. The numerator indicated Swap Points for Bid Rate and the denominator indicates Swap Points for Ask rate.

3. If the numerator is less than the denominator, the currency is quoted as premium in the forward market. Therefore, to arrive at forward rates, Swap Points should be added to the Spot Rate.

4. If the numerator is greater than the denominator, the currency is quoted at discount in the forward market. Therefore, to arrive at forward rates, Swap Points should be subtracted to the Spot Rate.

Checklist (Tick if you are done with it)

• Have you practiced questions on Cross Currency Calculations? (Refer Q.8 to Q.10 from Textbook)

• Have you practiced questions on Fair Forward Rate and Forward Arbitrage? (Refer Q.20 to Q.24)

• Have you practiced questions on Spot Arbitrage? (Refer Q.29)

• Have you practiced questions on determining Net Position of the Dealer? (Refer Q.28 & Q.30)

• Interest Rate Parity Theory

• Purchasing Power Parity Theory

• Do you know various approaches for managing Foreign Exchange Risk (Refer page 112 of Textbook)

• Have you practiced questions on outcome of entering into Forward Exchange Contract? (Refer Q.38 to Q.45)

• Have you practiced questions on Decision Making regarding whether to take Forward Cover? (Refer Q.46 to Q.50)

• Have you practiced questions on Money Market Hedge? (Refer Q.52 to Q.54)

• Have you practiced questions on Leading and Lagging? (Refer Q.55 to Q.59)

• Have you practiced questions on Swap Points Calculations? (Refer Q.60)

• Letter of Credit (Refer Q.62)

• Rate of Return on Foreign Currency Bond (Refer Q.65)

• Determining RADR in Foreign Currency based on Local Currency (Refer Q.69 & Q.70)

• Determining NPV on Foreign Project using Foreign Currency and Local Currency Approaches (Refer Q.71)

• Have you practiced questions on FDI? (Refer Q.72 to Q.75)

End of International Finance

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International Finance - LMR

Do you know? (Refer Q.1 to Q.6 from Textbook)

What is an Exchange Rate?

What do you mean by Direct Quote?

What do you mean by Indirect Quote?

What do you mean by Two Way Quote?

What do you mean by Bid Rate and Ask Rate?

What do you mean by Spread?

 $ 1 = ` 65

In the above quoted exchange rate:

The quote is given for 1 unit of $.

In this given quote, $ behaves like a commodity.

For an entity in India, $ is a foreign currency.

The given quote is for 1 unit of foreign currency.

This is a Direct Quote.

In a Direct Quote, 1 unit of foreign currency is expressed in terms of local currency.

 ` 1 = $

1

 65

 In the above quoted exchange rate:

The quote is given for 1 unit of `.

In this given quote, ` behaves like a commodity.

For an entity in India, ` is a local currency.

The given quote is for 1 unit of local currency.

This is an Indirect Quote.

In an Indirect Quote, 1 unit of local currency is expressed in terms of foreign currency.

 Note:

In order to classify a given Exchange Rate as Direct Quote or Indirect Quote one of the currencies in the quote must be the local currency.

 Direct Quote to Indirect Quote

Conversion of Direct Quote into Indirect Quote or Vice Versa

Inverse of an Indirect Quote will be a Direct Quote. Similarly, inverse of Direct Quote will be an Indirect Quote. However, precautions should be taken while converting Two-Way Quote from Direct to Indirect or from Indirect to Direct. In such situations consider the following:

Inverse of Bid Rate of a Direct Quote will become Ask Rate in an Indirect Quote.

Inverse of Ask Rate of a Direct Quote will become Bid Rate in an Indirect Quote.

For Example:

$ 1 = ` 48 – ` 50

 This is a Two-Way Direct Quote of $ for an Indian Company.

Given below will be an Indirect Quote:

 ` 1 = $

1

–

$

1

 50

48

 12

3

 Ask Rate: $ 1 = ` 50

At ` 50, bank is willing to “Sell” $ 1

Bank gives you $ 1 and takes ` 50

Bank “Buys” ` 50 for $ 1

Bank “Buys” ` 1 for $ 1/50

Rate at which bank “Buys” has to be a Bid Rate

` 1 = $ 1/50, this is a Bid Rate for `

 Bid Rate: $ 1 = ` 48

At ` 48, bank is willing to “Buy” $ 1

Bank gives you ` 48 and takes $ 1

Bank “Sells” ` 48 for $ 1

Bank “Sells” ` 1 for $ 1/48

Rate at which bank “Sells” has to be an Ask Rate

` 1 = $ 1/48, this is an  Ask Rate for `

 Appreciation & Depreciation (Premium & Discount)

What do you mean by Spot Rate?

What do you mean by Forward Exchange Rate?

What do you mean by Forward Exchange Contract?

What do you mean by Appreciation and Depreciation in case of Currency? (Refer Q.14 to Q.17 from Textbook)

Question

How do you compute Appreciation and Depreciation?

Answer

For this calculation, the numerator shall be ca final sfm classes difference between spot and forward rate and the denominator depends upon the quote informed.

 If the quote is given for the same currency whose premium or discount you are determining, the denominator will be Spot Rate.

 If the quote is given for the other currency, the denominator will be Forward Rate.

 To the rate determined above multiply the time factor, for example if the contract is for 3 months, then the time factor will be:

365

84

If the contract is for 84 days, then the time factor will be:

3

X 100 = 2.6086% p.a.

115

 Determining Rates of Premium & Discount

Question

Determine the Forward Premium and Discount Rate on annualised basis in the following cases:

$ 1 = ¥ 115 (Spot)

$ 1 = ¥ 112 (1 year Forward)

 $ 1 = ¥ 115 (Spot)

$ 1 = ¥ 114 (3 Months Forward)

 Solution

Depreciation Rate of “$”

3

X 100 = 2.6786% p.a.

112

Appreciation Rate of “¥”

1

X 100 X

12

= 3.4783% p.a.

115

3

 Depreciation Rate of “$”

1

X 100 X

12

= 3.5088% p.a.

114

3

Appreciation Rate of “¥”

1

X 100 X

12

= 3.5088% p.a.

114

3

 Fair Forward Rate & Arbitrage

  Where,

FFR = Fair Forward Rate

S = Spot Rate

iL = Interest rate (Local)

iF = Interest Rate (Foreign Country)

 Concepts of Swap Points or Forward Points

Example 1

Spot Rate:  $ 1 = ` 64.46

3 Months Forward Rate:  $ 1 = ` 64.76

It is obvious that $ is appreciating. The forward rate of $ is at forward point of 30. In other words, forward points (premium) = 30 points.

 Example 2

Spot Rate:  $ 1 = ` 64.1625

1 Month Forward Rate:  $ 1 = ` 64.1655

In the forward market, $ is quoted at premium of 30 points.

Example 3

Spot Rate:  £ 1 = $ 1.5650

2 Months Forward point (premium) = 5 points

Therefore, 2 months forward rate will be £ 1 = $ 1.5655

 Example 4

Spot Rate:  USD 1 = SGD 6.8580

2 Months Forward point (discount) = 15 points

Therefore, 2 months forward rate will be USD 1 = SGD 6.8565

 Example 5

Spot Rate:  USD 1 = HKD 7.8130 – HKD 7.8165

3 Months Forward point = 20/25 points

 Therefore, 3 months forward rate will be USD 1 = HKD 7.8150 – HKD 7.8190

 Example 6

Spot Rate:  USD 1 = HKD 7.8130 – HKD 7.8165

3 Months Forward point = 30/25 points

 Therefore, 3 months forward rate will be USD 1 = HKD 7.8100 – HKD 7.8140

 Note:

When Swap Points are quoted w.r.t. a Two-Way Quote, such Forward Points will be expressed in numerator and denominator form.

The numerator indicated Swap Points for Bid Rate and the denominator indicates Swap Points for Ask rate.

If the numerator is less than the denominator, the currency is quoted as premium in the forward market. Therefore, to arrive at forward rates, Swap Points should be added to the Spot Rate.

If the numerator is greater than the denominator, the currency is quoted at discount in the forward market. Therefore, to arrive at forward rates, Swap Points should be subtracted to the Spot Rate.

Checklist (Tick if you are done with it)

Have you practiced questions on Cross Currency Calculations? (Refer Q.8 to Q.10 from Textbook)

Have you practiced questions on Fair Forward Rate and Forward Arbitrage? (Refer Q.20 to Q.24)

Have you practiced questions on Spot Arbitrage? (Refer Q.29)

Have you practiced questions on determining Net Position of the Dealer? (Refer Q.28 & Q.30)

Interest Rate Parity Theory

Purchasing Power Parity Theory

Do you know various approaches for managing Foreign Exchange Risk (Refer page 112 of Textbook)

Have you practiced questions on outcome of entering into Forward Exchange Contract? (Refer Q.38 to Q.45)

Have you practiced questions on Decision Making regarding whether to take Forward Cover? (Refer Q.46 to Q.50)

Have you practiced questions on Money Market Hedge? (Refer Q.52 to Q.54)

Have you practiced questions on Leading and Lagging? (Refer Q.55 to Q.59)

Have you practiced questions on Swap Points Calculations? (Refer Q.60)

Letter of Credit (Refer Q.62)

Rate of Return on Foreign Currency Bond (Refer Q.65)

Determining RADR in Foreign Currency based on Local Currency (Refer Q.69 & Q.70)

Determining NPV on Foreign Project using Foreign Currency and Local Currency Approaches (Refer Q.71)

Have you practiced questions on FDI? (Refer Q.72 to Q.75)

End of International Finance

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