A 

 
Report On 
Prepare a Financial Plan for a Manager

Submitted to 
C. K. Shah Institute Of management 
Affiliate to 
Gujarat Technology University 

Module V
Subject
Financial Planning and Taxation
Faculty 
Ms. Krishna Bhatt

Submitted by 
Vrutika Shah
(Enrollment No.: 207050592001)
Bhakti Thakor
(Enrollment No.: 207050592014)
 Prepare a Financial Plan for a Manager

Assumptions

RAM, 35 years old, works in Cogniznat and earns ₹1,50,000 per month (post tax).
His wife is a homemaker. He is having a son who is 5 years old and a daughter whose age
is 2.

Ram has a home loan, car loan, and personal loan. These three are his biggest
liabilities.

He purchased car of ₹5 lacs, but the car is a depreciating asset whose value
depreciates with time. The current Value of the car is ₹3.5 lac only.

Cashflow Statement

Category Amount (in ₹)

Salary Income (post tax) 1,50,000

Living Expense 30,000

Medical Expense 4,000

Fuel 7,500

Monthly Share Purchase 5,000

Monthly SIP Investment 10,000

Bills 5,000

Loan EMI’s 54,660

Insurance 8,340

Recreation 4,000

Credit Card Minimum Payments 4,400

Other 7,000

Savings 10,100
Net Income = Total Income – Expenses

= 1,50,000 - 1,39,900

= 10,100 ₹

Balance sheet

Liabilities Amount (in ₹) Assets Amount (in ₹)

Credit Card 12,000 House Property 30,00,000

Home Loan 22,20,000 Car 3,50,000

Car Loan 2,24,200 Shares 45,000

Personal Loan 1,76,000 Cash at bank 1,00,000

SIP 1,10,000

Cash 20,000

Retirement Account 2,50,000

Gold 3,00,000

Fixed Deposit for kid 1,00,000

Net worth = Assets - Liability

= 42,75,000 - 26,32,200
= 16,42,800 ₹

Financial Goals:

A) Short Term

1. Aggregate an amount of ₹ 2.5 lakhs within 10 months for travelling to Dubai.

2. Emergency Fund = 1.5 lakhs * 6 months

= 9 lakhs (F.D or liquid funds)

B) Long Term
1. Son’s Graduation (@ present 10 lakhs) after 13 years, 10% education inflation,
would be around 35 lakhs. To invest in Mutual Funds, expecting 12% return,
4,000 /p.m. S.I.P

2. Daughter’s Graduation (@ present 10 lakhs) after 16 years, 10% education

inflation, would be around 46 lakhs. To invest in equities, 3,000/p.m. S.I.P

3. Daughter’s Marriage (@ present 20 lakhs) after 23 years it would be close to 95

lakhs. To invest in equities, expecting 7% inflation and 12% return

4. Retirement (@present 75,000/p.m.) at the age of 60 and life expectancy is 85

years. After 25 years, 7% inflation, it would be around 4,50,000