Question : Bajaj Finance Ltd. is carrying on a Mutual fund business. It invested Rs. 60,00,000 in shares and Rs. 30,00,000 in debentures of various companies during the year. It received Rs. 3,00,000 as dividend and interest. Find out cash flows from investing activities.
Option 1: Rs 93,00,000
Option 2: Rs 60,00,000
Option 3: Rs 63,00,000
Option 4: None of the above
Correct Answer: None of the above
Solution : Answer = None of the above
The cash flows from investing activities for Bajaj Finance Ltd. would include the total investments made during the year, which amounts to Rs. 90,00,000 (Rs. 60,00,000 in shares + Rs. 30,00,000 in debentures). The receipt of Rs. 3,00,000 as dividend and interest is considered an operating activity, not investing. Cash flow from investing activities will be nil since Bajaj Finance Ltd. is a finance company. Hence, the correct option is 4.
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