29 November 2014
friends, pls provide article regarding what are points or things which should be taken care of while preparing projected balance sheet for taking cc limit from bank on periodic basis.
29 November 2014
Make assumptions for the future years.The turnover may be assumed to increase by 10% every year.Maintain GP Rate standard.Provide Interest on the prospective CC Limit to the full extent.Maintain ratios like, CA/CL at 1.33 and above, DE ratio at 1:2 TOL/TNW below 3 etc.You may give figures for atleast 3 years.Prepare roughly with these yardsticks and if you want,please send to me for corrections and improvements.Use MS excel.And also drawing power is to be maintained with paid stocks.Enquire from the Banker what are the Margins they need on stocks and debtors.
CAclubindia
