You are on page 1of 13

Sunil and Nishi Gupta

Personal Wealth Statement

March 31, 2010


Assets Rs. Rs. Percent
Liquid Assets
Savings A/C Balance 19,400 0.37
Cash in hand 3,400 0.07
Money Market Mutual Fund Balance 100,000 1.93
Cash Value of Life Insurance 0
Total Liquid Assets 122,800
Real Estate
Current Value of House 3,920,000 3,920,000 75.69
Personal Possessions
Car 280,000 5.41
Household Furnishings 180,000 3.48
Cable TV 19,200 0.37
Jewellery 80,000 1.54
Total Household Assets 559,200
Investment Assets
Paid up Value of Life Insurance Policy
Equity 300,000 5.79
Retirement Accounts 277,000 5.35
Long term Investment
Total Investment Accounts 577,000 11.14
Total Assets 5,179,000 100.00

Liabilities
Current Liabilities
Travel and entertainment card balance 80,000 1.54
Credit Card Balance 115,400 2.23
Total Current Liabilities 195,400
Long-Term Liabilities
Balance due on Car loan 106,000 2.05
Home loan 3,477,600 67.15
Total Long-Term Liabilites 3,583,600
Net Worth 1,400,000 1,400,000 27.03

Total Liabilities 5,179,000 100.00


Projections for the next years

March 31, 2011


Rs. Percent

57,144 0.96 107144


50,000 0.84 kept in hand because hospital expense may be needed
100,000 1.68 bought 1 lakh from cash surplus
0 nil as after 3 yrs
207,144 3.49
0.00
4,312,000 72.60 10% value appreciates
0.00
252,000 4.24 depreciate by 10 %
212,000 3.57 depreciate by 10 %
19,200 0.32 same
assume to be 80000 80,000 1.35 same
563,200 9.48
0.00
30000 0.51
300,000 5.05 investment of extra 1 lakh and 2 lakh of previous year
327,000 5.51 increase by 50000
200,000 3.37 increased fixed deposit by 1 lakh and last year 1 lakh
857,000 14.43
5,939,344 100.00

0.00 reduced to nil by paying off from savings


0 0.00 reduced to nil by paying off from money market fund
0 0.00
0.00
20,000 0.34
3402400 57.29
3,422,400 57.62
2,516,944 42.38
0.00
5,939,344 100.00
ense may be needed emergency

kh of previous year

nd last year 1 lakh

money market fund


Sunil and Nishi Gupta
Cash Flow Statement for the year ended Ma

Income (Cash Inflows) Rs. Rs.


Salary 2490000
Less:
Income Tax 493000
Social Security 215000
Total Deductions 708000
Take-Home pay 1782000
Interest earned on Savings 5000
Income from Investments 54000
Income from Investments: Equity@16% 48000
Income from fixed deposits @9% -
Income from money market @6% 6000
Total Income 1841000 1841000
Cash Outflows
Fixed Expenses
Home loan payment 376,000
Home insurance premium 32,000
Car insurance premium 16,000
Car loan payment 86,000
Medical insurance premium
Life Insurance Premium 0
Total Fixed Outflows 510,000 510000
Variable Expenses
Food and Clothing 260,000
Utilities 79,600
Telephone 25,600
Medical Expenses 24,000
Transportation 112,000
Trip to US and Canada 200,000
Recreation and Entertainment 160,000
Cable TV 19,200
Household Furnishings
Miscellaneous Payments 107,800
Total Variable Outflows 988,200
Total Outflows 1,498,200

Cash Surplus + (or deficit - ) 342,800


Allocation of Surplus
Emergency Fund Savings
Cash and Bank Balance 22800
Savings for short-term / Intermediate financial goals
Investment in Equity Shares 300,000
Addition to Mutual Fund 20,000
Savings / investing for long-term financial security
here of 2011 surplus 1 lakh to be used to pay of card balance
Projection for the next year
he year ended March 31, 2010
March 31, 2011
Percent Rs. Percent
2181000 15 % increase for sunil and 6 mo

350000
200000
550000
100.00 1631000 100
0.28 5000 0.31
3.03 total 41000 2.51
2.69 3 lakh equity 32000 1.96 2 lakh in equity
9000 0.55 1 lakh in fixed
0.34 1 lakh money 0 0.00 money market fund of 1 lakh pai
103.31 1677000 102.82

21.10 376,000 23.05


1.80 32,000 1.96
0.90 16,000 0.98
4.83 86,000 5.27
6,000 0.37
0.00 none 30,000 1.84 assume lic premium
28.62 546,000 33.48
0.00 Though it may increase due to in
14.59 240000 14.71 cut down by 60000 and increase
4.47 63176 3.87 cut down by 20000 and increase
1.44 27136 1.66 increase by 6 %
1.35 50440 3.09 normal 6% increase and 25000 f
6.29 83104 5.10 normal 6 % increase but as nishi
11.22 - cancelled
8.98 80000 4.90 cut down to half
1.08 0.00
50,000 3.07 household buy for kid
6.05 assume to be this 80,000 4.90
55.45 623,856 38.25
84.07 1,169,856 71.73
0.00
19.24 507,144 31.09
0.00
0.00
1.28 107,144 6.57
0.00 0.00
16.84 100000 6.13
1.12 100,000 6.13
0.00 100,000 6.13
next year

% increase for sunil and 6 months salary for nishi

h in equity
h in fixed
ey market fund of 1 lakh paid to pay credit card balance

me lic premium

ugh it may increase due to inflation we have to cut all expenses down
down by 60000 and increase of 20%
down by 20000 and increase of 6%
ease by 6 %
mal 6% increase and 25000 for hospital charges
mal 6 % increase but as nishi not so cut down by 30 %

down to half

ehold buy for kid


Err:509
RATIOS

Debt Ratio = Liabilities / Net Worth

Debt Ratio = (Current Liabilities + Long term Liabilities) / Net Worth


Debt Ratio

Current Ratio= Liquid Assets / Current Liabilities

Current Ratio

Liquidity Ratio = Liquid Assets / Expenses (also known as basic solvency ratio)
or Liquid Assets / Net Worth

Liquidity Ratio (in months)

Debt Payments Ratio = Credit Payments / Take-Home Pay


or Debt to Income Ratio

Debt Payments Ratio (in %)

Savings Ratio = Amount Saved / Gross Income

Savings Ratio (in %)

Debt to Assets Ratio = Total Liabilities / Total Assets

Debt to Assets Ratio

Solvency Ratio = Total Net Worth / Total Assets

Solvency Ratio (in %)


FY 2009 FY 2010 FY 2011

2.70 1.65 1.34

0.63 2.86 1.89

8.77 12.80 7.09

25.93 28.33 30.70

22.40 25.74 15.62

0.73 0.62 0.57

27.03 37.73 42.76


ANNUAL BUDGET

Budgeted Amounts

Rs. Percent
Projected Inflows
Salary 1,782,000
Interest on Savings 5,000
Income from Investments 40,000
Total Inflows 1,827,000 100
Projected Outflows
Emergency Fund and Savings:
Emergency Fund Savings 70,000 3.83
Investment in Equity Shares 300,000 16.42
Addition to Mutual Fund 29,800 1.63
Savings for risk cover 100,000 5.47
Total Savings 499800 27.36

Home loan payment 376,000 20.58


Home insurance premium 32,000 1.75
Car insurance premium 16,000 0.88
Car loan payment 86,000 4.71
Total Fixed Expenses 510,000 27.91
Food and Clothing 200,000 10.95
Utilities 79,600 4.36
Telephone 25,600 1.40
Medical Expenses 24,000 1.31
Transportation 84,000 4.60
Trip to US and Canada 200,000 10.95
Recreation and Entertainment 120,000 6.57
Miscellaneous Payments 84,000 4.60
Total Variable Outflows 817,200 44.73
Total Outflows 1,827,000 100
Actual Variance
Amounts
Rs.

1,782,000
5,000
40,000
1,827,000

22800 47,200
300,000 0
20,000 9,800
0 100,000
342800 157000

376,000 0
32,000 0
16,000 0
86,000 0
510,000 0
260,000 -60,000
79,600 0
25,600 0
24,000 0
112,000 -28,000
200,000 0
160,000 -40,000
113,000 -29,000
974,200 -157,000
1,984,000 157,000