CA Final AFM case studies

CA Final AFM · Put your knowledge to work in context.

CA Final Advanced Financial Management (AFM) is the elective paper of the CA Final level under the Institute of Chartered Accountants of India (ICAI). It is intended for candidates who have cleared earlier levels and want a finance-heavy specialisation rather than a general audit-and-tax profile. The CA Final AFM case studies are 5 cases and about 5,384 words.

Kaveri Labs / Aranya Biotech: Accretive but Value-Destroying?

Kaveri Labs Ltd (KLL) is a listed formulations company with 5 crore shares, trailing PAT of ₹400 crore (EPS ₹80) and a market price of ₹1,200 - a P/E of 15. It has negotiated to acquire Aranya Biotech, an unlisted vaccine maker with 1.5 crore shares, PAT of ₹90 crore (EPS ₹60) and a standalone value of ₹900 per share, also 15 times earnings.

1,052 words, about 5 min 2

Suryodaya Ceramics: When the Abandonment Option Reverses a Negative NPV

Suryodaya Ceramics Ltd is evaluating a ₹500 crore greenfield tile plant at Morbi. The finance team's base case uses a 15% risk-adjusted discount rate over a five-year explicit horizon and assumes annual after-tax operating cash flow of ₹220 crore if the export market stays strong and ₹60 crore if it stays weak.

981 words, about 5 min 3

Deccan Auto Components: Netting, Money-Market Hedge and the Priced Put

Deccan Auto Components invoices a single German OEM in US dollars. On 1 April its book shows a firm USD 4.2 million receivable due 30 September, a USD 1.8 million payable to a Japanese licensor also due 30 September, and a USD 0.9 million payable due 30 June.

1,068 words, about 5 min 4

Meera Menon: Beta-Constrained Alpha and a Two-Fund Ranking Conflict

Meera Menon runs a ₹50 crore discretionary portfolio for a family office. Her mandate caps portfolio beta at 1.25 and requires an expected return of at least 17%.

1,111 words, about 6 min 5

Aarohan Textiles: Beta Hedging with Futures versus a Zero-Cost-Style Collar

Aarohan Textiles holds a ₹6 crore portfolio of twelve large-cap stocks with a beta of 1.20 against the Nifty 50. The promoter family cannot sell before a settlement nine months away because of capital gains tax and control issues, but has promised lenders that the portfolio will not fall more than about 8% over the next quarter.

1,172 words, about 6 min