There are two undeniable realities in life – one is death the other is cashflow!

Can you elaborate on your journey as a professor at XLRI? How did you become motivated to pursue this career?

I was working at Tata Steel back in 1997 when XLRI invited me to conduct a course as a visiting faculty member. That course turned out to be a significant success, primarily because the students were around my age at the time. It was 27 years ago, and we connected very well. I didn’t have a formal academic background in teaching, as my prior experience was in industry and professional practice. Typically, people apply to XLRI, but in my case, XLRI approached me after that course. The success of the course led them to ask if I was interested in joining full-time. Initially, I was hesitant because I was young and involved in various activities. However, I submitted my CV, went through the interview and seminar process, and eventually got selected. When a professor is newly inducted, students rarely attend the seminar, but in my case, a minimum of 55 students attended. The seminar topic might have been a bit advanced for them, but they still gave me a glowing recommendation. That’s how my academic career began.

Could you share an example of how you integrate real-world financial scenarios into your teaching curriculum?

Absolutely. That’s central to my teaching method. I have extensive experience, not just in terms of years but also in the variety of exposure I’ve had. My practice provided me with a wide range of experiences across different industries. For instance, during my time at Tata Steel — which is like an ocean, with its vast array of mines, steel plants, hospitals, clubs, and more — I gained exposure to many domains. When I was in practice, I had to delve into extreme detail before signing anything. Without an understanding of the business, it would have been impossible to do the work I was doing. I had to be thoroughly familiar with the diverse projects I undertook, much like a consultant with experience in various industries. This diverse exposure allows me to bring real-world

So, you always liked teaching, even before that?

Yes, there’s a story behind it. I lost my father when I was just one year old, which placed a huge financial burden on my family. My elder brother and I had to take care of ourselves. I started teaching when I was in class 6 to help support my family. Teaching became a part of who I am, and I’ve been doing it continuously since then. Initially, I taught English and Maths, and now I teach Finance. This early start fostered a strong affinity for teaching in me.

How did you get into Finance? Was there any influence before that?

Actually, my younger uncle, who was the only chartered accountant in our family, had a huge influence on me. He was an exceptional chartered accountant and motivated me a great deal. His influence led me to pursue a career in CA and Finance. After class 12, I completely shifted from Science to Commerce. I studied at South Point School, and then examples into the classroom, making the concepts more relatable and understandable for students. Your students find your teaching style exceptional, yet some struggle in your exams.

How do you balance imparting knowledge while ensuring assessments are fair?

This is a complex question and one very dear to my heart. I belong to the old school of thought and strongly believe that no matter how well or poorly I teach, I can’t make you learn anything unless I motivate you to study my paper. Fear can be a powerful motivator, and I believe that exams should be challenging. When I teach at XLRI, I like to think that I am speaking to some of the best minds in the country. Over the years, I have maintained a certain standard in my exams, and students must meet that standard to pass the course. I firmly believe that my exams should have a level of difficulty that ensures students put in the effort and truly understand the subject.

How do you ensure that students from completely different backgrounds, such as arts or humanities, can cope with your finance classes?

If you attend my sessions, you’ll see that I always make an effort to connect with those who are entirely new to the subject. I start from the very basics and never take anything for granted. There are always some students with a prior background in finance, which gives them an advantage in exams. However, in my class, I ensure that everyone is on the same level by the end of the sessions. I build up from the basics, and the only complaint you might hear from students is about the exams. I make sure that everyone thoroughly understands the fundamentals. Cash is the king or queen in business. Profitability matters, but only if it translates into cash, as there’s a huge difference between profit and cash. Finance is highly technical and requires consistent effort. A year of dedicated study can significantly strengthen your understanding of core principles. Ideally, one year of dedicated study can significantly strengthen the foundation. Students should develop good study habits, such as regular practice, continuous learning, and seeking help when needed. It’s also important to have a basic comfort level in maths and stats, as well as a good working knowledge of both micro and macroeconomics. Most XLRI students have a reasonable comfort level in maths and stats, but I had to learn economics entirely on my own, never having had the opportunity to study it formally. To be honest, if you start asking me questions in the microeconomics domain, I’ll invariably get caught. That’s why it’s essential to study economics as part of the four pillars. With a strong foundation in these areas and consistent effort, students can excel in finance. Many corporates prioritise profitability over cash flow management.

How do you address this in your teaching?

Cash is the key in any business. The top line of a company, its revenues, is essentially the vanity of the company. The bottom line, which is the profit, is the sanity. But the most important line is the cash flow line, which is the reality. There are two undeniable realities in life — one is death, and the other is cash flow. Many financial models, like NPV (Net Present Value) models, are based on cash flow because cash is the most critical parameter. In any business, cash is always regarded as the king or queen. Profitability is important, but only if the profit, sooner rather than later, translates into cash — there’s a huge difference between profit and cash. A company might earn significant profits but have negative operating cash flows, which is a big problem. I emphasise the importance of cash flow management in my classes to ensure students understand this critical aspect.

Finance subjects often pose challenges for students. What are the common reasons students struggle with finance?

The main reason is the strength of the foundation. Unless your foundation is very strong, finance will always remain difficult. Finance is highly technical. To master finance, you need a solid foundation in four key pillars: accounting, costing, financial management, and economics. If any of these pillars are weak, it will be challenging to excel in finance. Students often have to grasp these concepts in a very short time, which, if you ask me, is a bit unfair. I understand the challenge of condensing two years of study into a brief period. While I could simplify the material, doing so would weaken the foundation necessary for long-term success. Ultimately, consistent effort and a robust understanding of these pillars are essential for excelling in finance. How long does it take to gain expertise in these four pillars, and what study habits do you recommend? It takes time and consistent effort to build a strong foundation in these four pillars.