Strategic management and financial management are included in the CA Inter FM and SM 2026–2027 course. Paper 6 is split into two sections and is worth 100 points. 50 points are awarded for financial management and 50 points for strategic management.

Financing, investments, dividends, and working capital choices are the main topics of financial management. Strategic analysis, strategic decision-making, execution, and assessment are all included in strategic management. You can efficiently arrange your preparation if you are aware of the curriculum and section-wise weighting.

CA Inter FM and SM 2026-27 Syllabus

Sections A and B of the syllabus are devoted to financial management and strategic management, respectively. There are 50 points for each section.

Section A: Financial Management

The CA Inter Financial Management section carries 50 marks. It covers four major areas.

1. Financial Management and Financial Analysis

Weightage: 10%-15%

The foundations of financial analysis and management are covered in this section. It consists of:

• Introduction to Financial Management
• Objectives and scope of financial management
• Profit maximisation, wealth maximisation and value creation
• Role of the Financial Manager and Financial Controller
• Financial management environment
• Functions of finance executives
• Financial distress and insolvency
• Financial analysis through ratios
• Sources of financial data
• Calculation and interpretation of ratios
• Limitations of ratio analysis

2. Financing Decisions and Cost of Capital

Weightage: 45%-50%

A substantial portion of the Financial Management syllabus is devoted to this section, which covers important finance decisions. Subjects covered include:

• Sources of finance
• Long-term and short-term sources of finance
• Contemporary sources of funding
• Internal and international sources of finance
• Lease financing, sale and leaseback, convertible debt, venture capital and grants
• Cost of capital
• Measurement of individual components of capital
• Weighted Average Cost of Capital (WACC)
• Marginal cost of capital
• Capital structure decisions
• Capital structure theories
• EBIT-EPS analysis
• Break-even EBIT analysis
• Under and over-capitalisation
• Operating, financial and combined leverage

3. Capital Investment and Dividend Decisions

Weightage: 20%-25%

Dividend decisions and investment appraisal are the main topics of this section. It consists of:

• Capital investment decisions
• Payback period
• Discounted payback period
• Accounting Rate of Return (ARR)
• Net Present Value (NPV)
• Capital rationing
• Equivalent Annual Costs
• Internal Rate of Return (IRR)
• Modified Internal Rate of Return (MIRR)
• Profitability Index
• Basics of dividends
• Cash dividend
• Bonus shares and stock splits
• Share buyback
• Determinants of dividend
• Dividend policy theories

4. Management of Working Capital

Weightage: 15%-20%
The handling of immediate financial needs is covered in this section. Subjects covered include:

• Liquidity and profitability
• Working capital financing decisions
• Working capital cycle
• Operating and cash conversion cycles
• Assessment of working capital requirements
• Management of accounts receivable
• Factoring and forfaiting
• Credit management
• Management of accounts payable
• Management of cash
• Treasury management
• Banking norms of working capital finance

Section B Strategic Management

50 points are awarded for the CA Inter Strategic Management section. It is divided into five portions, each of which has a 15%–25% weight.

1. Introduction to Strategic Management

Weightage: 15%-25%
The fundamental ideas of strategic management are covered in this section, including:

• Meaning and nature of strategic management
• Importance and limitations of strategic management
• Strategic intent
• Vision, mission, goals and values
• Strategic levels in organisations

2. Strategic Analysis: External Environment

Weightage: 15%-25%

The analysis of the external business environment is the main topic of this section. It consists of:

• International and macro environment
• PESTLE Analysis
• Industry analysis
• Value Chain
• Product Life Cycle
• Porter’s Five Forces
• Customers and markets
• Competition in the industry

3. Strategic Analysis: Internal Environment

Weightage: 15%-25%

• Key stakeholders
• Mendelow’s Model
• Strategic drivers
• Resources and capabilities
• SWOT Analysis
• Competitive advantage
• Michael Porter’s Generic Strategies

4. Strategic Choices

Weightage: 15%-25%

• Concentric and conglomerate strategies
• Market development
• Product development
• Innovation
• Horizontal and vertical integration
• Turnaround
• Divestiture
• Liquidation
• Development of strategic options
• Ansoff’s Matrix
• ADL Matrix
• BCG Matrix
• GE Matrix

5. Strategy Implementation and Evaluation

 CA Inter FM and SM 2026-27 Exam Pattern

The 100 Marks on Paper 6 are split equally between Strategic Management and Financial Management.

As a result, the CA Inter FM SM course calls for preparation in both conceptual and numerical domains. While Strategic Management concentrates on concepts, frameworks, and their application in business contexts, Financial Management covers calculations and decision-making problems.

CA Inter FM and SM 2026-27 Preparation Strategy

1. Focus on High-Weightage FM Areas

Financing Decisions and Cost of Capital, which have the highest stated weighting of 45%–50% in Financial Management, should receive enough practice time. Regular numerical practice is also necessary for capital investment and dividend decisions.

2. Practise FM Questions Regularly

Don't rely solely on reading concepts and formulas. Answer questions about working capital, investment appraisal, cost of capital, capital structure, ratios, and dividend decisions.

3. Build Conceptual Clarity in SM

Learn about the meaning, purpose, and application of strategic management ideas. Instead than just memorizing their names, learn about frameworks like PESTLE, Porter's Five Forces, SWOT, Ansoff's Matrix, BCG Matrix, and GE Matrix.

4. Make Short Revision Notes

Make brief notes about models, strategic frameworks, key concepts, and formulas. In the last phases of revision, these notes may be helpful.

5. Revise Both Sections Regularly

Don't finish Strategic Management last and Financial Management first, or the other way around. Throughout your preparation, keep both parts active.

6. Practise Application-Based Questions

You must use principles in commercial or decision-making scenarios in order to meet the objectives of both parts. When editing, incorporate application-based queries rather than just definitions.