LOVELY PROFESSIONAL UNIVERSITY INSTRUCTION PLAN (for Lectures) Term: Open Elective Course No.

MGT881 Course Title: Basic Accounting and Finance L: 3 T: 0 P: 0

Textbook: 1.Hiro Preeti & Sofat Rajni, Basic Accounting, Prentice Hall of India, 2008 Ch 1,5,6,7,10 2.Sharan V. Fundamentals of Management 2nd Edition, Pearson Education,2009- Ch 1,2,5,7,8,17 Other Specific Books: 3. Pandey I.M. Management Accounting 3rd Revised Edition , Vikas Publishing House,2008Ch4,5,13,20,21 4. Jawahar , Shrivastva Cost Accounting , 4th Edition , Tata MacGrawHill,2008 Ch 15,20 5 Pandey I M Financial Management 9th Edition , Vikas Publishing House,2008 Ch-1,7,20 Other readings: S. No Journal articles as compulsory reading 6. Mohan R. (2008) Global Financial Crisis & key risks: Impact on India and Asia by, RBI Bulletin, Nov http://rbidocs.rbi.org.in/rdocs/Speeches/PDFs/87784.pdf 7. D. Subharao(2008) Lessons from the global financial crisis with reference to the emerging market economies and India RBI Bulletin, Nov http://rbidocs.rbi.org.in/rdocs/Speeches/PDFs/87789.pdf 8. Dr. Singh Kumar Pardeep (2009) Target costing- Conceptual Analysis and Application in India, The Charted Accountant Vol.57 pg 74 9. Anand Manoj;( 2007) Working Capital performance of Corporate India; ICFAI Journal of Applied Finance, Vol.13 No.1 pp.46-81 , Jan Relevant websites: S. No Web address 10 http://www.cooperator.com/articles/1219/1/CapitalBudgeting-and-Planning/Pg1.html 11 12 13 http://www.aafm.org/article.php?id=494 http://findarticles.com/p/articles/mi_m4130/is_3_27/ai_53 649447 http://economictimes.indiatimes.com/opinionhome/89722 8639 Salient Features The real applications of the capital budgeting in the company for high operational expenditure The varied aspects of a financial manager in the period of crisis Group of articles on the application of the dividend policies Insight into editorials , forums , interviews related to finance

Detailed Plan for Lectures Lecture Topic No.

Chs / Sections of Textbook / Other reference1 Ref.1/Ch. 1

Assignment / Task to be assigned to students 3 DoS4

Pedagogical aid Demonstration/ case study / images/ animations etc5. Video: Basics Of Accounting(Wh ere did accounting come from) Video: ( Uses of Accounting Information)

Date Delivered2

Introduction, Meaning and scope of Accounting

Branches of Accounting , Double Entry System of Accounting-Debit and credit

Ref.1/Ch 1 Pg No9, Ch 4 Pg.No.40 onwards Ref.1/Ch 1 Pg No.12-13 Ref.1/Ch 5 Pg No. 48 Ref.1/Ch 5 / Pg No. 48 Ref.1/Ch 6 /Pg No78 Ref.1/Ch 6 Pg No78 Ref.1/Ch 7 / Pg No.101 Ref.1/Ch 10 / Pg 192 Ref.1/Ch 10/ Pg 200 Ref. 1/Ch.10

3 4 5 6 7 8 9 10 11

Accounting Cycle and Journal Preparation Accounting Cycle and Journal Preparation: Passing the basic nature Journal entries Journal Preparation: Passing the basic nature Journal entries Ledger Preparation: Introduction , uses of Ledger , Ledger Posting Trail Balance preparation, uses and prerequisites Preparation of Trading Account and Profit and Loss Accounting Preparation of Trading Account and Profit and Loss Accounting Preparation of Trading Account and Profit and Loss

12

13

14

Accounting Balance Sheet Preparation (Contents of Balance Sheet, Balancing the Asset Liability side of the balance Sheet) Balance Sheet Preparation (Contents of Balance Sheet, Balancing the Asset Liability side of the balance Sheet) Analyzing Financial Statement- Introduction to the various important ratios

Ref.1/Ch 10 Pg 205 Ref.1/Ch 10 Pg 205 Ref.3/Ch 4 Pg No.108

15

Analyzing Financial Statement- Introduction to the various important ratios Calculation of the basic ratios: profitability , liquidity and solvency ratios Introduction to the concepts of cost: introduction to the various kind of costs related with the cost sheet Preparation and uses of cost sheet Concept of Marginal Costing: Meaning of Marginal cost and Marginal Costing Concept of Marginal Costing: Meaning of Marginal cost and Marginal Costing Break Even Analysis-Graphic and algebraic in units

Ref.3/Ch 4 Pg No.108 Ref.3/Ch 4 Pg No.108 Ref.4/cost concepts

Excel Application: Spreadsheets for the calculations of the various ratios Video: Understanding of Financial Statement

16 17

18 19

20

21

Ref.4/Cost 4 Sheet/Pg 47 Ref. 3/Ch 13 : Pg No.527532/Ref 8 Ref. 3/Ch 13 : Pg No.527532/Ref 8 Ref. 3/Ch 20 Pg 365-370

Excel Application: Spreadsheets for the calculation of the Breakeven points

22

Relevance of Budget and Budgetary Control in the organization

Ref. 4/ Budgeting /Pg 887889

23

Budgetary control in an organization: Some important of budgets and their control

24 25

26 27

Introduction to the financial management , Decision areas of the management Objectives of Financial Management Wealth Maximization v/s Profit Maximization Financing Decision and the Sources of Finance Cost of Capital: overview of the cost of equity, debt, preference shares. Concepts of Time value of Money: overview of the discounting and compounding

Ref. 4/Budgeti ng/ Pg 908915/Ref 10 Ref.2/Ch 1 /Pg No.4-8 Ref. 2/Ch 1 Pg No. 9-12 Ref.4/ 5Ch.20/Pg 432 Ref.2/Ch 6 7 Pg No.124 Ref.2/Ch 2 Pg No.18-20

Case Study: Bharat Heavy Electricals Ltd.

28

Case Study: Computation of cost of capital of Palco Ltd; Case Study: ICICI Prudential Retirement Plan, Calculation of the Annuities by the use of spreadsheets

29 30

Concepts of Time value of Money: overview of the discounting and compounding Financial Leverage/ Trading on Equity

31 32 33

34

Ref.2/Ch 2 Pg No.18-20 Ref3.Ch 21 Sec 21.3 Pg No.383 Overview of Capital Budgeting Ch 5 Techniques Sharan V Pg No76 Overview of Capital Budgeting Techniques Dividend Decision: Ch 17 Introduction meaning and Sharan V Relevance Pg 301,308310/Ref 12 Determinants of the dividend

Case Study: Central Equipment Company Case Study: Remote Addiction Ltd. 7 Case Study: Great Eastern Co. Ltd.

35

policy Working Capital Management and determinants of the working capital Inventory ManagementConcept and Relevance

36

Ch 8 8 Sharan V Pg No.139/ Ref 8 Ch 8 Sharan V Pg No.196

Case Study: Reliable Texamill Ltd Case Study: Indus Engineering Ltd.

Additional Material for spillovers: 1 Studying the balance sheet of the company 2 Discussion on financial Ref 10 Planning 3 Discussion on the recent Ref 7 financial issues Global Crisis Notes: 1. Use S. No of the reading above 2. To be filled in on the date of delivery of lecture by the instructor 3. Put assignment number from Assignment Table (below) against the lecture in which planned to be assigned (by co-ordinator). 4. To be filled in on the date of assignment (by the instructor) 5. Do not write Lecture, OHP, LCD projector etc. Details of Assignments Planned: Assignment Details No. 1. Assignment from the Journal and Ledger : To pass the Journal Entries and Post them to Ledger 2. Assignment from the Final Accounts: Prepare the Trading , Profit and Loss Account and Balance Sheet 3. Calculation of Ratios from the Balance Sheets and the annual reports of the company 4. 5. 6. 7. 8. Assignment of the Preparation of the Cost Sheet Assignment on preparation of Budget Assignment on Calculation the cost of capital Assignment on Capital Budgeting Assignment on Working Capital calculation for the business Nature of Assignment Assignment Based Test Assignment Based Test Assignment Based Test Assignment Based Test Assignment Based Test Assignment Based Test Assignment Based Test Assignment Based Test Expected outcome Students will get the practical application about the accounting part of the business Real life exposure about how the balance sheet are required to be prepared in the business Students will realize the importance of the various ratios use to analyze the impact on the business Analyses of the basic costs incurred in a business firm Analyze the total cost of capital employed in the firm Students will get the practical application about the accounting part of the business Practical exposure regarding te preparation of the budget Evaluation of the various projects based on the capital

budgeting techniques Term paper to be allotted by lecture no. 7 Scheme of CA: (out of 100) Component Attendance Assignments Term paper Frequency 8 1 Marks out of 100 10 72 18
Due date of term paper:2 wks before the close of term

List of suggested topics for term paper S. No Topic 1 Study and compare the balance sheet of the two different companies of IT sector. 2 Analyzing the position of the business based on the calculation of the ratios and then comment upon the liquidity position of the firm. 3 Analyzing the cost related aspects of any manufacturing company- and prepare the cost sheet of the same. 4 Study and compare the balance sheet of the two different companies of Textile sector. 5 Analyse the working capital situation of Satyam Computer and study the major areas of the fraud. 6 You are facing the working capital shortage in your retail organization; suggest the measure to overcome the problem. 7 You are going to start a restaurant, prepare a budget and find when your restaurant will reach at its breakeven point. 8 Analyzing the position of the business based on the calculation of the ratios and then comment upon the solvency position of the firm 9 Suggest the various projects which could be undertaken by the construction company and evaluate the project on the various capital budgeting techniques. 10 Analyze the financial leverage advantage obtained by any firm in the FMCG sector. 11 Analyse the factors affecting the distribution of dividend by the companies in power sector. 12 Analyzing the position of the business based on the calculation of the ratios and then comment upon the profitability position of the firm. 13 Plan a business and create the transactions for one month assuming two transactions per day and then proceed with the accounting concepts up to the maintenance of final accounts. 14 Study and compare the balance sheet of the two different companies of Automobile Sector. 15 Calculate analyze and compare the various ratios for the various companies (at least 2) in the FMCG sector.

References Of the Cases

Serial No. 1 Name Bharat Heavy Electrical Ltd Topic Objective of a business Book/website
Pandey I.M., Financial Management Ninth Edition , Vikas Publishing House M.Y. Khan,P.K. Jain, Financial Management 5th Edition, Tata McGrawHill 2007 V. Sharan Fundamentals of Management 2nd Edition ,2009 , Pearson Education Pandey I.M., Financial Management Ninth Edition , Vikas Publishing House M.Y. Khan,P.K. Jain, Financial Management 5th Edition, Tata McGrawHill 2007 Pandey I.M., Financial Management Ninth Edition , Vikas Publishing House Pandey I.M., Financial Management Ninth Edition , Vikas Publishing House Pandey I.M., Financial Management Ninth Edition , Vikas Publishing House

Page No. 12

Computation of cost of capital of Palco Ltd; ICICI Prudential Retirement Plan

Cost Of Capital

11.44

Time Value of Money

30

Central Equipment Co.

Capital Structure

286

Remote Addiction Ltd Great Eastern Co. Ltd

Capital Budgeting

9.67

Dividend Policy

394

Reliable Texamill Ltd

Working Capital Management

597

Indus Engineering Ltd.

Inventory Management

639

____________________________ Prepared by (instructional planner: Name, Signature & date)

Comments of HOFD (Chief Academic Officer) Signature & Date Comments of Dean of Faculty Signature & Date

Report
Lectures: - (to be filled by the instructor and submitted at the end of term of HOS through HOD) S. No Innovation introduced [ New pedagogy, new demonstration, case study, teaching aid, etc. NOT part of the instructional Plan Topic and lecture number where introduced

General Comments of the Instructor about the suitability of IP

Conduct of Tutorials Tutorial No. Date Topics covered in the Tutorial Activities (like quiz, case study, doubt clearing, any other)

Syllabus coverage report Syllabus coverage by one week before MTE Satisfactory / Lagging by ___ lectures. Syllabus coverage by two week before ETE Satisfactory / Lagging by ___ lectures.

________________________ Signature of Instructors & date

____________________ Signature of HOD & date