Page 140 - DMGT306_MERCANTILE_LAWS_II

Unit 7: The Payment of Gratuity Act, 1972

Notes
3. Fuel & maintenance: Personal Cars & vehicles: 15,000
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 & 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.

Contd....

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