Page 248 - DCOM207_LABOUR_LAWS

Unit 14: The Payment of Gratuity Act, 1972

3. Fuel and maintenance - Personal Cars and vehicles: ` 15,000 Notes
4. Fix payment to his father and both brothers: ` 30,000 **

**Debited to Amaranth’s capital account as his personal withdrawals
5. Children’s education expenses: ` 28,000
Current Assets Current Market Value
1. 2 Guest Houses ` 350 lakh
2. 20 Taxies ` 35 lakh
3. 2 Restaurants ` 115 lakh
4. 3 Shops ` 75 lakh

5. Residential House ` 200 lakh
6. Private Cars/Vehicles ` 15 lakh
7. Cash money rotating in his private money lending business ` 50 lakh
8. Misc. Savings/Insurance Policies/Investments ` 50 lakh
Amaranth’s Goals and Aspirations
1. To create an independent income source for his parents

2. To go for Holy Land pilgrimage with his entire family
3. To provide a guaranteed education fund for his children
4. To provide a separate marriage fund for his children
5. To plan for a guaranteed cash flow for his living without any physical work
6. To diversify his business interests
7. To buy a lavish Bungalow in Dubai
8. To get his siblings married in the next three years

9. To purchase 2 separate flats for his both brothers on or before their marriage
Current Economic Scenario
1. Risk free interest rate: 10%
2. Inflation: 11%
Historical Mutual Funds schemes’ return (5-year period) Scheme CAGR (% p.a.)

Income schemes 6%
Balanced schemes_1 (70:30 equity-debt) 12%
Balanced schemes_2 (40:60 equity-debt) 8%
Equity Diversified schemes 16%
Fixed Maturity Plans (Annual) # 9%
# The track record for Fixed maturity Plans is only for three years.
Questions:

1. As Amaranth is a semi-literate person, he doesn’t comprehend a structured
communications in written English or written Hindi. He can read only Konkani
though he understands Hindi in verbal communication. According to you what
Contd...

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