The CS Executive programme of ICSI has undergone a syllabus revision, and from June 2025 session onwards students must follow the New Syllabus. One of the key papers in Group I under this new structure is “Corporate Accountin g & Financial Management (CAFM)”. This article explores what CAFM covers, its changes, key topics, exam preparation strategy and tips to excel.

What is CAFM and its significance

The CAFM paper essentially integrates two broad domains:

• Corporate Accounting — which deals with accounting for companies, advanced issues in corporate accounting, consolidation, etc.
• Financial Management — covering financial decision making, capital budgeting, working capital, financial analysis, and related management aspects.

For a CS Executive student, this subject is crucial because accounting forms the financial backbone of company secretaryship and financial management skills are vital for advisory, compliance and strategic roles within corporate entities.

Key changes in New Syllabus 2025

With the shift to the new syllabus (for CS Executive Course) the major changes relevant to CAFM include:

• The revision has rationalised several chapters, trimmed overlaps, updated content to reflect current business, financial and regulatory practices.
• Reference materials and modules are now labelled “New Syllabus – 2022” for Executive, which means that students need to ensure they are studying the correct edition.
• The exam papers show that CAFM is being treated with equal weight as other papers in Group I for June/Dec attempts.
• Some topics that were perhaps more detailed earlier may have reduced or shifted; students noted that • “sinking funds” • “buy-back in installments” had less emphasis under new syllabus.
• The general trend: fewer but deeper topics, strong emphasis on application (especially in financial management), and integration of real-world corporate accounting issues.

Core Topics of CAFM (New Syllabus)

While the full syllabus should be obtained from ICSI’s official source, broadly the topics you’ll expect include:

Corporate Accounting side

• Accounting for share capital, debentures, companies (issue, redemption)
• Financial statements of companies, analysis and interpretation
• Amalgamation, absorption, reconstruction of companies
• Consolidated financial statements (subsidiaries, associates)
• Corporate accounting standards and recent amendments
• Accounting for banking companies, insurance companies (if included)
• Internal reconstruction, -- liquidation, etc.

Financial Management side

• Financial management: meaning, scope, financial decisions
• Capital budgeting: techniques (NPV, IRR, payback), risk in capital budgeting
• Working capital management: operating cycle, management of inventory, receivables, cash
• Cost of capital, capital structure decisions, dividend decisions
• Financial markets, instruments, leasing, hire-purchase, etc.
• Risk management, derivative instruments (maybe)
• Corporate restructuring from financial viewpoint.

Since CAFM spans both accounting and finance, emphasis must be balanced.

Exam Pattern & Weightage

From recent exam papers (June 2025) for CAFM under the new syllabus:

• The paper was held offline on 8 June 2025.
• Being a Group I paper, it carries the standard full marks (100) for the subject.
• Expect a mix of theory + numerical problems, especially in accounting and financial management.
• Because the syllabus is newer, repetition of past papers is limited; hence practice across topics is essential.

Strategy for Preparation

Here are key tips tailored for CAFM with the new syllabus in mind:

1. Start with strong fundamentals: Make sure your basics of accounting (company accounts) and finance (capital budgeting, working capital) are rock-solid.
2. Use up-to-date study material: Ensure modules/books are as per the “New Syllabus – 2022/2025” edition. Old syllabus content may not be valid.
3. Balance theory and numerical: Corporate Accounting portion will need memory and understanding; Financial Management more problem-solving.
4. Solve latest question-papers: Use June 2025 CAFM paper to understand patterns.
5. Chapter-wise revision: Since the syllabus has some trimmed parts, allocate time proportionately; identify high-weightage chapters based on past attempt trends.
6. Mock tests & time management: Focus on timed practice, especially for numerical problems.
7. Amendments & standards: Keep an eye on recent changes in accounting standards or finance regulations — especially since new syllabus often tries to reflect current developments.
8. Revision plan: Perhaps two cycles of revision: first for understanding, second for practicing under exam-conditions.

Common Pitfalls & How to Avoid Them

• Over-reliance on old syllabus material: Some topics removed or modified; cross-check with official syllabus.
• Neglecting one side: Students often favor accounting or ignore finance; since both sides matter, do not neglect either.
• Insufficient numericals: In financial management, weak numerical practice can cost marks.
• Ignoring recent standards/amendments: These often carry weight in corporate accounting.
• Poor time allocation: Since issues like consolidations/numericals can be time-consuming, practice for speed.

Final Words

The CAFM subject under the new CS Executive syllabus is demanding but entirely achievable with structured preparation. Given its dual nature (accounting + finance), mastering it offers a strong advantage—not only for clearing the exam but for the professional life of a company secretary. With the right study material, disciplined practice and focused revision, students can turn CAFM from a challenge into a strength.