Prof. Pratik Gohil

  📖 Aarav Learns Corporate Finance Aarav had recently completed his course in financial management and joined his uncle’s manufacturing business. On the very first day, his uncle asked him, “Can you explain what corporate finance really means for us?” Aarav replied, “Corporate finance is the area of finance that deals with how companies manage money, make investment decisions, and plan for long-term growth.” His uncle smiled and said, “So what is its role in business?” Aarav explained that corporate finance ensures businesses raise funds, allocate them efficiently, and maximize the value of the company for its shareholders. He added that the primary objective of financial management is to maximize wealth and not just short-term profit. Next, they discussed sources of corporate finance. Aarav explained that funds can be raised internally from retained earnings or externally through two major methods: debt financing and equity financing. Debt financing involves borrowing money...

  📘 Aarav’s Journey into the World of Investments Aarav was a 25-year-old software engineer who had just received his first big annual bonus. Until then, most of his earnings were either spent on lifestyle expenses or kept idle in his savings account. While talking with his father one evening, Aarav realized that simply keeping money in the bank would not help him achieve his long-term dreams—buying a house, starting his own business, and eventually retiring early. He wanted his money to grow, but he was unsure how to begin. That weekend, Aarav met his friend Meera, who worked as a financial advisor. Seeing his curiosity, she decided to guide him through the basics of investments and financial planning . 🌟 Introduction to Investments Meera started with a simple question: “What do you think investment means?” Aarav replied, “Maybe saving money in a bank account?” Smiling, Meera explained, “Not exactly. Investment is about putting your money to work so it grows over time. Un...

  📘 Story: Riya’s Café and the Power of Financial Planning Riya always dreamed of opening a café in her town. She had the recipes, the passion, and the support of her family. But when she sat down to actually start, she realized passion alone could not run a business—she needed a budget and a clear financial plan. 🌟 Introduction to Budgeting One evening, her mentor told her: “Riya, budgeting is like a map. Without it, you don’t know where your money is coming from or going to. With it, you can plan expenses, track revenues, and achieve stability.” Riya understood that the purpose of budgeting was not only to record numbers but also to: Control spending Reduce financial stress Allocate resources wisely Improve decision-making Set benchmarks for success She smiled and thought: “Budgeting is like the recipe card for money—it guides every ingredient I put into my business.” 📝 Different Types of Budgets As she researched, she found that busines...

  📖 The Story of Sutra Café: Understanding Financial Statements Ravi, Meera, and Arjun had always dreamt of running a small business together. After finishing their studies, they decided to open a cozy little café near their college campus. They named it Sutra Café , believing that it would weave together their passion for coffee, friendship, and entrepreneurship. In the very first month, their café was buzzing with customers—students, professors, and office-goers all loved their coffee and snacks. By the end of the month, the friends were excited to know whether they had really made money or not. But how could they be sure? Their mentor, Professor Shah , smiled and said, “Every business speaks the language of financial statements. If you learn to read this language, you’ll always know the true story of your café.” Income Statement – The Story of Profitability Professor Shah first taught them about the Income Statement , also called the Profit and Loss Statement . This...