Day 3

Day 3:
All the participants are struggling to cope up with the reading. Topics being taught are interesting and classes of all Professors have been very informative, thought provoking. But to read all the mentioned material is proving to be a formidable task.

total 4 sessions. 2 HR, 1 Guest lecture, 1 Accounting.
HR:
HR activities can be divided into:
a) Recruitment & Selection
b) Performance & Reward management
c) Training and Development
d) Career and Succession planning
e) Grievance handling and Disciplinary process

Guest lecture:
Mr. Phiroz Poonawalla's story was inspiring. The way the case study was structured made it more interesting. He resurrected a company deep in debts, by identifying the root problems and acting in an unconventional way to resolve the problem.

Accounting:
This session was on P&L. Following 5 areas were explored
1) Expense and Expenditure
2) Accrual vs. Cash
3) Realisation of Revenue
4) Matching Expenses with Revenues
5) Depreciation.

1) Expense and Expenditure:
Expense goes to P&L, Expenditure goes to Balance sheet (they are always assets).

If Resource Utilisation Period (RUP) precedes the Accounting period end date, it is Expense. If RUP is after the current Accounting period end date, it is expenditure. (i.e. there are unexpired costs and so are assets).
FY01 31/3/07 FY02
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RUP RUP
Expense Expenditure

a) Salaries - expense
b) Purchase of Material - expenditure
c) Insurance Prem (for 1-4-07 to 31-3-08) - expenditure

R&M and Capex:
Capex: Any financial txn which
a) increases the revenue
b) decreases the costs
c) Increases the useful life (beyond its intended/original life).

a) Debottlenecking in the plant - Capex (as it increases throughput)
b) Replacing petrol engine cars with diesel engine cars - Capex (savings in op. costs)
c) Replacement of SS Piping - R&M
d) Remaking of engine to extend useful life of car - Capex