ABC Ltd. produces a single product that sells for ₹75 per unit. Cost data are:

(a) Variable manufacturing costs, ₹35 per unit.

(b) Variable selling and administrative expenses, ₹5 per unit.

(c) Fixed manufacturing costs requiring cash, ₹2,50,000 per month. Fixed selling and administrative expenses, ₹2,00,000 per month, all requiring cash. Depreciation, ₹60,000 per month.

Other relevant data are:

(d) The firm has a policy of maintaining a two-month’s supply of finished products. The opening inventory (January 1) is 42,000 units.

(e) The firm does not hold raw materials inventory and purchases raw materials as needed. The cost of raw materials is included in the variable manufacturing cost of ₹35.

(f) The firm has a practice of making all sales on credit, collecting 30 per cent in the month of sale and the balance in the following month. There are no bad debts and overdue accounts. The opening debtors’ balance is ₹7,00,000.

(g) The firm pays all manufacturing costs in the month of production.

(h) The firm pays four-fifths of selling and administrative expenses in the month of incurrence and the balance one-fifth is paid in the following month. On January 1, the firm owed ₹30,000 for December expenses.

(i) The minimum desired cash balance is ₹80,000, which is also the amount the firm has on January 1. Borrowings are possible and can be made in multiples of ₹10,000. It must borrow at the beginning of a month and repay at the end if sufficient cash is available. The interest rate is 10 per cent and the firm pays interest when it repays loans or portions of them.

(j) The sales budget for the first six months in units is: January, 20,000; February, 26,000; March, 30,000; April, 32,000; May, 30,000; June, 28,000.

You are required to prepare an individual monthly cash budget for the first three months of the year, and also a consolidated budget for the same period.