CS Professional · December 2025 · Paper 5
CS Professional Strategic Management and Corporate Finance December 2025: paper analysis
Our own analysis of the official paper, as of 12 October 2026. The questions and answers belong to ICSI; read them on ICSI's website.
Chapter-wise marks
Where the marks were in this paper (out of 100; internal-choice alternatives not double counted).
What each question tested
In our words, by question number. Open the official paper for the full question.
| Q | Marks | Tests | Chapter |
|---|---|---|---|
| 1(a)(i) | 5 | Meaning of total quality management and its key principles as applied by a manufacturer facing global competition | Business Policy and Formulation of Functional Strategy |
| 1(a)(ii) | 2 | Major focus areas for continuous improvement under a total quality management programme | Business Policy and Formulation of Functional Strategy |
| 1(a)(iii) | 3 | Quality tools used under total quality management, with benefits and implementation challenges | Business Policy and Formulation of Functional Strategy |
| 1(b)(i) | 2 | Meaning of environmental factors affecting business growth, illustrated from an agri-food venture | Analyzing the External and Internal Environment |
| 1(b)(ii) | 2 | Influence of political and legal factors such as subsidies and labelling rules on growth | Analyzing the External and Internal Environment |
| 1(b)(iii) | 2 | Economic opportunities and threats arising from income growth, inflation and supply disruption | Analyzing the External and Internal Environment |
| 1(b)(iv) | 2 | Role of technological change such as e-commerce and digital payments in market expansion | Analyzing the External and Internal Environment |
| 1(b)(v) | 2 | Positive and negative effects of climate and ecological factors on a farm-based business | Analyzing the External and Internal Environment |
| 2(a) | 5 | Activities excluded from statutory CSR expenditure under section 135 of the Companies Act | Introduction to Strategic Management |
| 2(b) | 5 | Identifying market penetration, development, product development and diversification under the Ansoff matrix | Managing the Multi-Business Firm and Analyzing Strategic Edge |
| 2(c) | 5 | Steps for implementing business process reengineering across an organisation | Business Policy and Formulation of Functional Strategy |
| 2(d) | 5 | Meaning of strategic leadership and benefits of strategic planning | Strategic Analysis and Planning |
| 2A(i) | 5 | Transformational, transactional and charismatic styles of strategic leadership and their fit to environments | Introduction to Strategic Management |
| 2A(ii) | 5 | Meaning of a mission statement and questions to address while framing it | Introduction to Strategic Management |
| 2A(iii) | 5 | Market leader, challenger, follower and nicher positions explained | Competitive Positioning |
| 2A(iv) | 5 | Comparison of PERT and CPM network techniques on orientation, model, focus and suitability | Strategic Analysis and Planning |
| 3(a) | 8 | Capital budgeting: after-tax cash flows with working capital, NPV and profitability index for plant purchase | Project Evaluation |
| 3(b) | 3 | Drawing power computation for a cash credit limit with margins and ineligible aged debtors | Sources of Corporate Funding |
| 3(c) | 4 | Working capital requirement estimated using the operating cycle method | Sources of Corporate Funding |
| 4(a) | 5 | Cost-benefit evaluation of availing factoring services versus in-house receivables management | Raising of Funds - Non Fund Based |
| 4(b) | 5 | Conditions for issuing redeemable preference shares and companies permitted to issue them | Sources of Corporate Funding |
| 4(c) | 5 | IPO eligibility under ICDR Regulation 6(1) track record route and the alternative 6(2) route | Raising of Funds from Equity and Procedural Aspects - Public Funding |
| 5(a) | 5 | SEBI master circular changes for REITs and InvITs on unitholder board nomination and complaint disclosures | Real Estate Investment Trusts |
| 5(b) | 5 | Sweat equity issue: statutory limits, post-issue capital and conditions under section 54 | Raising of Funds - Private Funding |
| 5(c) | 5 | AIF schemes in dissolution or extended liquidation period: filings and in-specie distribution conditions | Raising of Funds - Private Funding |
| 6(a) | 5 | SEBI changes to denomination for issue and trading of non-convertible securities | Raising of Funds from Debt and Procedural Aspects |
| 6(b) | 5 | Documents needed for listing approval of shares allotted on conversion of FCCBs | Foreign Funding - Institutions |
| 6(c) | 5 | Research analyst regulation amendments on capital adequacy and compliance officer appointment | Role of Intermediaries in Fund Raising |
| 6A(i) | 4 | Current ratio derived from projected sales and credit and stock holding periods | Sources of Corporate Funding |
| 6A(ii) | 6 | Meaning of securitisation and the parties involved in the process | Sources of Corporate Funding |
| 6A(iii) | 5 | Bank methods for assessing working capital: Tandon committee MPBF and Nayak committee turnover method | Sources of Corporate Funding |
What stood out
- Part I (40 marks) was pure strategic management and Part II (60 marks) corporate finance, with Q2 and Q6 offering full alternatives (2A, 6A).
- Both case studies in Q1 were strategy-side: one on total quality management as functional strategy and one on external environment (PESTEL-style) analysis, 20 marks together.
- Sources of Corporate Funding was the most frequently tested chapter (6 entries), mainly working capital finance: drawing power, operating cycle, current ratio, MPBF and securitisation.
- Recent SEBI changes featured heavily: REIT/InvIT master circular amendments, AIF dissolution rules, non-convertible securities denomination and research analyst amendments.
- Numericals covered capital budgeting (NPV and PI), factoring evaluation, IPO eligibility under ICDR and sweat equity limits, so computation practice matters in Part II.
Practise the chapters that carried the marks
Sources of Corporate Funding, Business Policy and Formulation of Functional Strategy, Introduction to Strategic Management: study guides and practice questions in the CS Professional format.