Post Graduate Diploma in Management

Faculty Dr. Manaswee Kumar Samal Year/Term Term-1/2019

Course Name FADM No. of Credits 3
No of Contact Hours 30 Duration 90 mins.

About the Instructor:

Masters in Commerce, a Fellow Member of The Institute of Chartered Accountants of

India, Ph.D. in Disclosure & Accounting, Diploma in IFRS (ACCA-UK), Diploma in
Information Systems Audit, Post qualification course on valuation from ICAI

Has teaching & consulting experience of more than 20 years

Course Objectives and Key Take Away

Business Organisations strive to sustain and grow. The value they create for the stakeholders is a
reflection of the performance and holds out a futuristic assurance that it will continue to survive and
grow. Markets channelize value centric information as one of the factors to help extrapolate future value.

The course aims to highlight the role of accounting as value centric information. It introduces the basics
of accounting process and preparation of Financial Statements. It orients the students to appreciate the
role accounting plays for communicating enterprise performance in the financial market. The course
would put emphasis on accounting as a measurement art [measurement of enterprise performance].

It also helps the student learn the tools and techniques of financial statement analysis to compare a
firm’s performance with its competitors and industry performance. It will demonstrate how non-
accounting information combined with accounting information could help in predicting future
performance of an enterprise.

The thrust of the course is to enable a student to analyse the financial statements and process
accounting information for taking better informed business decisions.

Learning Goals:
In addition to the course objectives mentioned above, students should expect to
develop the following by end of the course

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 1. An appreciation of contemporary patterns of global economic and political
changes and consequences of globalization for emerging markets
(Assessment through class discussions on emerging markets)
2. Critical and Creative Thinking: Each student should be able to analyze and
identify key issues relevant to this course, develop a perspective supported
by relevant information and creative thinking to assess the business situation
and draw conclusions. (Assessment through case discussion and analysis)
3. Interpersonal Communication and Working in Teams: each student will
demonstrate his ability to appreciate peer group member view point and
work in team environment, exhibiting a clear understanding of individual
roles and tasks, ability to identify and resolve interpersonal conflicts and
contribute in achieving team goals. (Assessment through team based project
work)

Required Text Book:

Financial Accounting – A managerial perspective by R. Narayanaswamy, PHI

Additional Readings:

 Financial Accounting for Management by N. Ramachandran, Ram Kumar Kakani, McGraw-Hill

 Accounting: texts and cases by Robert N Anthony, McGraw Hill
 Financial Statement Analysis by Charles H. Gibson, CENGAGE Learning
 Financial Accounting for Business Managers by Ashsis Bhattacharyya, PHI
 Accounting standards of ICAI [www.icai.org]
 International financial reporting standards [www.ifrs.org]
 Hand-outs

EVALUATION COMPONENTS:

Components of Course Evaluation Percentage Distribution

Class Participation
Quizzes (please mention the number of quizzes that 3 quizzes minimum (all
you wish to do and scores for each quiz) may be surprise quiz)

25% weight

Each quiz will carry 10

points, will be weighted
25% in toto
Not a part of grade, but
compulsory submission
Assignments before announced
deadlines for eligibility for
term exams
Project (Group) 25%

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Mid Term Examination 15%
End Term Examination 35%
Other
Total 100

COURSE MATERIAL AND HANDOUTS:

Soft copies of course material, assignments including case studies will be uploaded
in the intranet.

SESSION WISE TOPICS AND READINGS:

Session No-1
Session Title Elements of Financial Statements (FSs)
Topics to be covered Financial Elements
Business decisions & financial items
(Investing/Financing/Operating decisions)
Introduction to FSs & information need of users
of FSs
Reading Material Hand out
Additional Reading Text book
Case Title
Pedagogy Discussion
Session No-2
Session Title Introduction to FSs

Topics to be covered Balance Sheet, Income statement, Cash flow

statement, Annual report

Reading Material Text book

Additional Reading
Case Title FSs of Maruti Suzuki India Limited
Pedagogy Discussion
Session No-3
Session Title Accounting Process
Topics to be covered Accounting Equation
Relevance of accounting concepts
Accruals
Reading Material Text book
Additional Reading XXXXXX
Case Title XXXXXX
Pedagogy Discussion
Session No-4
Session Title Accounting Process
Topics to be covered

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 Entries, Accounts, Trial balance, Financial
Statements
Reading Material Text book
Additional Reading Chapter-4 of Accounting by Robert
Anthony
Case Title DFS Pvt. Ltd.
Pedagogy Discussion
Session No-5
Session Title Income Measurement
Topics to be covered
Reading Material Text book
Additional Reading Hand-out on revenue recognition
Case Title
Pedagogy Discussion

Session No-6
Session Title Accrual Accounting: Income & Profit
Topics to be covered Understanding income
Understanding expenses
Asset expensing
Notions of profit: GP, EBIT, EBT, EAT, EBITDA, EPS
(Basic & Diluted)
Expense & Assets
Receipts & Income
Payments & Expense
Accruals: Receivables & Payables
Reading Material Text book
Additional Reading Hand-out
Chapter-3 of Accounting by Robert
Anthony
Case XXXXXXXX
Pedagogy Discussion
Session No-7
Session Title Inventory Accounting
Topics to be covered Inventory, Valuation, Accounting flow
Measuring cost of goods sold
Ratios

Reading Material Text book

Additional Reading Handout on Inventory Accounting,
Chapter-6 of Accounting by Robert
Anthony
Case Title
Pedagogy Discussion
Session No-8
Session Title Understanding cash flow
Topics to be covered Cash flow statement preparation
Understanding operating cash, change in

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 working capital
Reading Material Text book
Additional Reading Handout, Chapter-11 of Accounting by
Robert Anthony
Case Title XXXXXX
Pedagogy Discussion
Session No-9
Session Title Understanding cash flow

Topics to be covered Understanding cash flow sources

Understanding cash flow ratios
Reading Material Handout on cash flow ratios
Text book
Additional Reading
Case Title MRF cash flow statement
Pedagogy Discussion
Session No-10
Session Title Accounting for receivables and investments
Topics to be covered Receivables, provisioning, bad debt
Different types of investments and valuation

Reading Material Text book

Additional Reading Handout
Case Title XXXXX
Pedagogy Discussion
Session No-11
Session Title Long term assets
Topics to be covered Property, plant & equipment
Initial, Subsequent expenditure
Expenditure during construction period
Revaluation
Intangible Assets
Reading Material Text book
Additional Reading Handout, Chapter-7 of Accounting by Robert
Anthony
Case Title XXXXXX
Pedagogy Discussion
Session No-12
Session Title Depreciation & Impairment
Topics to be covered Depreciation: alternatives, impact on profit
Asset impairment

Reading Material Text book

Additional Reading Handout
Case Title XXXXX
Pedagogy Discussion
Session No-13
Session Title Lease Accounting

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Topics to be covered Operating lease & Finance lease
Implications for financial position
Reading Material Handout on Lease accounting:
Implications
Additional Reading
Case Title XXXXXXX
Pedagogy Discussion
Session No-14
Session Title Accounting for Tax
Topics to be covered Deferred tax
Deferred tax assets
Deferred tax liability
Is it equity or liability?
Implications for analysis
Reading Material Accounting for Taxes( Handout)
Additional Reading
Case Title XXXXXX
Pedagogy Discussion

Session No-15
Session Title Accounting for equity
Topics to be covered Shares, issue, redemption, buyback, reduction:
implication on cash flow & profit measurement

Understanding various reserves and their

implications

Reading Material Text book

Additional Reading Handout, Chapter-9 of Accounting by
Robert Anthony
Case Title XXXXXXXX
Pedagogy Discussion
Session No-16
Session Title Liability
Topics to be covered Understanding current liabilities and non-
current liabilities, Contingent liabilities

Reading Material Text book

Additional Reading Chapter-8 of Accounting by Robert
Anthony
Case Title XXXXX
Pedagogy Discussion
Session No-17
Session Title Financial Statement Analysis
Topics to be covered Common-size FSs
Trend Analysis
Ratio Analysis
What they don’t tell

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 Reading liquidity & solvency
Reading Material Text book
Additional Reading Chapter 6 & 7 of FSA by Charles H.
Gibson
Case Title Maruti Suzuki
Pedagogy Discussion
Session No-18
Session Title Financial Statement Analysis
Topics to be covered Dupont Analysis
Reading Material Text book
Additional Reading Handout, Chapter 8 of FSA by Charles
H. Gibson
Case Title Apollo Tyres
Pedagogy Discussion/Simulation/Group
Presentation
Session No-19
Session Title Financial Statement Analysis
Topics to be covered DuPont analysis
Market ratios
EPS
EVA & MVA
Reading Material Text book
Additional Reading Chapter 9 of FSA by Charles H. Gibson
Case Title XXXXXXXXX
Pedagogy Discussion
Session No-20
Session Title Consolidation
Topics to be covered
Reading Material Handout
Additional Reading XXXXX
Case Title
Pedagogy Discussion

PROJECT SCHEDULE PROJECT SCHEDULE:

You will have a simulated learning through this project. What we

understand in the class will be replicated in this component.

The class will be divided into groups of 6 students in each group.

After the end of first session each group will be allocated a company. By the end of the second session,
each group will designate a group coordinator for all future mailing purpose.

The project deliverables with timelines are indicated in the table below.

The group members are supposed to go through a group presentation & viva or a written exam in lieu of
this after the end of the course.

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Evaluation shall be on the basis of viva/written test. Performance of the group members shall be solely
based on individual performance in the test.

Session -1& 2 Group formation

Session-5 Know the major shareholder of your company.

(Anyone holding more than 5% of equity shares
of the company)

Find out the reportable (business) segments.

Calculate trend in sales, profit of different
segments over the last five years. Find out
segment growth rates and compare with
respective industry growth rates.

Know the group structure. Who are the

associates? Has the company got JVs?

Know investments made by your company in

the last three years and changes therein. Know
the major change in financing of your company
in the last three years.

Calculate your company’s share price return in

the market compared to index return on a
weekly basis for the last one year ending on the
date of course commencement. Compare this
return with return from shares of your two
competitors.

Track announcements of your company for the

last one year and look for announcements and
price reaction. You should generate a chart for
this.

Generate a file for this deliverable and upload

in course web and send through mail styled as
Group-xxx/Part-1 by 11.59 pm on the day this
session happens.

Session-15 Compute profit ratios of your company and

compare with two competitors and industry
average (average of two companies excluding
yours) over the last five years ending on

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 31.03.2018 or the latest year available.

Find out the trend in sales, profit, asset growth

over the last five years and compare with two
chosen competitors.

Generate a file for this deliverable and upload

in course web/send through mail as Group-
X/Part-2 by 11.59 pm on the day this session
happens.

Session -18 Project: Analyse cash flow of your company for

the last three years

Compare with two competitors in the industry

and comment

Generate a file for this deliverable and upload

in course web/send through mail as Group-
X/Part-3 by 11.59 pm on the day this session
happens.

Five days after the 20th session
(Part A)
Make a comparative study of any six major
accounting policies (exercise your judgment as
to why these happen to be major areas of
interest for your company) of your company
with two competitors and generate a concise
document of one page.

Study BoD’s report and MDA of your company

and list down major developments that you
think will boost future cash flows of the
company in one page.

Five days after the 20th session Intra-firm comparison for the year 2017-18 and
(Part B) inter-firm comparison of financial performance
for your company with two competitors has to
be made.

Generate a file for this deliverable and upload

in course web/send through mail as Group-
X/Part-5 by 11.59 pm on the day this day
happens.

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ATTENDANCE

Regularity in Attendance

Regular attendance is considered extremely important in the PGDM. All

students therefore, must comply on regular attendance in class. The relative
deduction of grade points due to shortage of attendance is explained in the
table below. Students having attendance of less than 60% (irrespective of
medical certificates) shall not be permitted to appear for the examination in
that term/academic year and will carry “F” grade in the course.

Institute uses biometric attendance for recording attendance of students. In

the event of two continuous sessions, students are required to punch twice at
the beginning of each session if there is a break in between the sessions.

The class room doors will be closed within 5 minutes of starts for each
session. Student attendance will be a component while grading them for the
course. If the instructor wishes to take physical attendance along with the
Biometric attendance, they will communicate the same in the class. In this
case also Biometric attendance will be the official record (and not the
physical attendance) for the course. Instructors have been advised to report
about habitual absentees (habitual absentee is defined as students absent in
the class for more than three classes consecutively).

Unauthorized absence from class/institute will be considered a breach of

discipline and the Institute will be free to take appropriate action in such
cases. The same student will be asked to face disciplinary committee.
Students will not be given any attendance for any committee related
activities which warrants them to drop from the class. They are required to
undertake all committee related work beyond class hours.

Under extra-ordinary circumstances, students may obtain leave of absence

under the following rules and procedures:

 Prior permission of the Director PGDM must be obtained for availing of

leave. Students are not permitted to go out of station during the terms. In
the event of students visiting their local guardian for overnight stay, they
must inform the Director PGDM and admin office (Officer in charge of
hostels) and only travel after receiving a proper gate pass. If a student is
noticed to be out of station for overnight without any intimation to the
Director PGDM, disciplinary action will be taken against him/her to the
extent of debarring the student from appearing in the examinations.
 In case of sickness, medical certificate issued and/or countersigned by the
doctor along with the prescribed application form must be submitted to
the PGDM Office within 3 days of joining classes after illness. No student
shall be allowed to join the program unless he/she presents a medical

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 fitness certificate duly endorsed by a Medical Officer of the designated
hospital only. No medical certificates from doctors other than the Institute
approved hospital will be entertained.

 Institute's approved hospital’s Medical Officers will issue medical

certificates only in case of diagnosed illness where they are convinced
that the student is too ill to attend classes. These include hospitalization,
communicable diseases (chicken-pox, jaundice and typhoid) and
accidental injuries (fractures, deep traumas).

 For grounds other than sickness, leave will be allowed to students in

exceptional cases depending on the genuinity of the case by the PGDM
Director. However no compensatory attendance and examination will be
held for the period of leave. Students will be awarded grades on the basis
of their attendance level and performance only in the classes fr which
they were present. Before applying for leave to the Director PGDM a
student should contact his/her course instructors to ensure that he/she is
not missing any quizzes or examinations during the leave period.

 The PGP Office or the faculty concerned will not be responsible for the
student losing any segment of evaluation on account of his/her leave. No
compensatory opportunity will be given for quizzes and other class room
based components on account of leave of any kind.

Attendance and Performance Grade Penalty

Each student is expected to attend a minimum of 80% of classes in each

course. The grade penalty will be imposed on all the students who do not
meet the minimum 80% attendance requirements in each course in the
following manner:

Attendance of Student Performance Grade

Penalty
More than or equal to 70% but less One grade drop (e.g. from A+
than 80% to A)
More than or equal to 60% but less Two grade drop (e.g. from A+
than 70% to A-)
Less than 60% F grade will be awarded

If a student gets D grade in a particular course and also gets a grade drop
due to attendance shortage, 'D' will become an 'F' grade.

If a student fails to meet the specified attendance requirement, his/her grade

in the respective course(s) would be lowered by the Director PGDM in
accordance with the grade penalty rules laid down above.

Attendance Grades

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Students will receive their attendance grades in the form of letter grades
along with their performance grades. The final transcript will carry
attendance letter grades and their interpretations as following

90% and above- A grade

80% and above up to 90%- B grade
70% and above up to 80%- C grade
60% and above up to 70%- D grade
Below 60% - I (Incomplete grade.)

Exiting and Entering

Students are expected to remain in the classroom, be mentally alert, and

participate in the class proceedings for the duration. If a student must leave
early for unavoidable reasons, that student should obtain permission from the
professor before the class begins. Leaving and re-entering the class is not
permitted, except under extraordinary circumstances. Faculty members may
cross check the attendance and if a student is found absent in the class, the
case will be sent to discipline committee and actions will be taken by the
committee.

Norms of Behavior

Students should demonstrate respect for Faculty and fellow students.

Respectful behavior contributes to the enhanced learning experience.
Students should refrain from disruptive behavior such as eating, using
laptops, and holding side-conversations. Using laptops during is allowed only
on the instruction of the professor. If necessary, the students are expected to
seek redress for grievances at a proper forum instead of seeking an
immediate solution.
All grievances may be addressed to the PGDM-Director or respective
functional heads and in his absence, to the Executive Director. In such cases,
a copy should be marked to the above.

Respect the Facilities

Students are expected to help maintain chairs, display screen, desktop

computers, LCDs, tables, window curtains and electrical fittings in good
usable condition and not damage them or render them useless. Students are
expected not to destroy the classroom ambience. The cost of damage, loss or
theft on account of students will be recovered from them. When this cannot
be attributed to one student, the cost will be recovered from an identifiable
group of which the individual is a part or from the entire batch. Students are
expected to use cans to dispose of trash. They are also encouraged to
remove defacing or unclean material voluntarily.
Essentially, students should always use proper reporting and escalating
mechanisms for concerns and issues. Under no circumstances should
students take matters into their own hands. Students are expected to use
only the students’ dining hall for dining. Classrooms or any of the other
administrative or academic areas shall not be used for dining.

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Great Lakes has adopted the principle of preserving the environment.
Therefore, it tries to inculcate in the minds of its students and staff, a sense
of being one with nature causing no harm anytime, anywhere, and under any
circumstances which will result in damage to the environment.
Smoking, chewing tobacco and drinking alcohol in and around the premises is
strictly prohibited. Severe penalties will accrue to those students caught
violating this.

Use of Laptops in the class

Use of laptops in the class is strictly prohibited during class hours, unless
specifically authorized by the Faculty or the Academic Administration.

Biometric Readers:
Bio-metric readers are installed for attendance in class rooms. Students must
register their attendance using only these devices.

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