BRCM College of Business Administration

Group member: - 1. Preyas Joshi

2. Jeet Patel
Roll no. :- Preyas Joshi - 102
Jeet Patel - 165
Subject: - Financial Management
Submitted to: - CA Nikunj Sir
Submitted on: - 15th November 2021
Company selected:- Ashok Leyland
 Index

Sr No. Topic Pg. No.

1 Introduction 3
2. Dividend Decision 4
3. Leverage 6
4. Working Capital Required + Operating cycle of company 7
5. Cash Management 9
6. Investment 10
7. Lecture and Project experience 11
 Bio Data

Preyas Joshi 102

Name Preyas Ashok Joshi
Father Name Ashok Kantilal Joshi
Mother Name Jayshree Ashok Joshi
Mo. No. 9327234756
Email preyasjoshi5102002@gmail.com
Date of Birth 5th October, 2002
Gender Male
Nationality Indian
Language Known English, Gujarati, Hindi
Qualification SSC, HSC

Jeet Patel 165

Name Jeet Rajesh Patel

Father Name Rajesh Kantilal Patel
Mother Name Amisha Rajesh Patel
Mo. No. 7043331114
Email Jeetpatel.5600@gmail.com
Date of Birth 20th march 2001
Gender Male
Nationality Indian
Language Known English, Gujarati, Hindi
Qualification SSC, HSC
All values are from annual report of Ashok Leyland 2019-20.

Dividend Decision
1. Walter Model

VC = D+ (Ra/Rc) (E-D) Ra=10.88% Rc=23.80% D=3.10 E=6.76

Rc

= 3.10+(10.88/23.80) (6.76-3.10)

23.80

= 120.75

2. Modigliani & Miller Model

Po = 1 . D=3.10 Kc=23.80 Po=100
(1 + Ke) * (D1 + P1)
Po = 1 .
(1+23.80)*(3.10+p1)
P1 = 120.35

3. Gordon approach
P = E (1-b) E=6.76 b=56.64 (1b)=43.35 Kc=23.80 br=616.24
Ke – br
P= 6.76(1-56.64)
23.80 – 616.24
P = -63.48
 Cash Management
Preyas Joshi 102
particulars Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Total
opening balnce of cash 350 1490 2400 3440 4490 5340 6290 7120 7870 4170 5170
cash receipt
from service (job)
from business
from father & Mother 2000 2000 2000 2000 2000 2000 2000 2000 2200 10000 2000 2000 32200
Total A 2000 2350 3490 4400 5440 6490 7340 8290 9320 17870 6170 7170 80330
cash payment
mobile expenses 200 200 200 200 200 200 200 200 200 200 200 200 2400
stationery 50 10 30 20 250 20 50 0 10 440
xerox 50 10 0 50 50 100 260
petrol 1200 450 600 550 500 650 500 750 1000 1200 600 750 8750
food 200 150 250 190 250 300 100 150 200 250 100 50 2190
any other
gift & party
cloth + perssonal expenses 12000 12000
Total B 1650 860 1090 960 950 1150 1050 1170 1450 13700 1000 1010 26040
Balance A -B 350 1490 2400 3440 4490 5340 6290 7120 7870 4170 5170 6160

JEET PATEL 165

CASH BUDGET OF BRCM STUDENT 1-12022 to 31-12-2022

Particular Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
OPENING 145 145 195 90 140 90 135 185 185 130 130
BALANCE OF
CASH
Cash Receipt
FROM SERVICE
(JOB)
FROM BUSIENSS
FROM FATHER & 2300 1100 1200 1550 2500 1000 1700 1100 1400 1500 2300 1300
MOTHER
Total A 2300 1245 1345 1745 2590 1140 1790 1235 1585 1685 2430 1430
Cash payment
MOBILE 555 555 555 555
EXEPSNES
STATIAONERY 50 50 50
EXPENSES
XEROX EXPENSES 50 100 50 50 50 100
FOOD EXPENSES 200 250 250 200 350 200 250 200 250 200 250 300
PETROL 850 800 800 800 900 800 800 850 800 800 800 900
EXPENSES
Any other 200 200 250
Gift and party
Cloth + 500 1000 1000
Personal
Expense
Total B 2155 1100 1150 1655 2450 1050 1655 1050 1400 1555 2300 1200
Balance A-B 140 145 195 90 140 90 135 185 185 130 130 230
 Investment
Particular 01-01-2021 01-01-2021 Interest Rate Return
Gold 1,00,000 1,11,000 11% 11000
Silver 1,00,000 107000 7% 7000
Mutual Fund (HDFC 1,00,000 114900 14.9% 14900
Hybrid Equity Fund –
Direct Plan – Growth
Equity)
KVP 1,00,000 106900 6.9% 6900
NSC 1,00,000 106800 6.8% 6800
PPF 1,00,000 107100 7.10% 7100
Senior Citizen 1,00,000 107400 7.40% 7400
Scheme
RBI Bond 1,00,000 107150 7.15% 7150
Bank Fixed Deposit 1,00,000 106000 6% 6000
Land 1,00,000 108000 8% 8000
Equity Share (Tata 1,00,000 431380 331.38% 331380
Power)
Debenture 1,00,000 108000 8% 8000
Loan given to 1,00,000 110000 10% 10000
Relative
Post Office MIS 1,00,000 106600 6.6% 6600
Total 1400000 1838230 438230
 Lecture and Project Experience

1. We got wonderful experience from this assignment. Especially the cash budget assignment was
wonderful. It improves practical knowledge of our regular expenses and income. This assignment
improves research ability.
2. The main benefit of financial management lecture is that was completely in offline mode. So we can
easily understand all the topics and calculation.
3. There are some difficulty in assignment to find out ratios and other financial data but it gave different
experience for me to do this. Due to our syllabus topic we can learn about practical things about the
company profile how they should work and as an investor how we should interpret the company
performance and how we can protect ourselves from the trap and can implement our own mind
instead of listening others.
4. Between the lines give us life tips in the form of stories and how to control our ego and how we can
utilize our in the positive things, the friends topic also teach us about how to select a true friend and
from which type of people we should remain careful and what type of discussion should be done
between friends.
5. No queries, the method of teaching is also very good that we get motivation to learn something new
and also we not loose our concentration. Only one suggestion improve handwriting.