CMA data PROBLEM
This query is : Resolved
19 June 2008
I have to prepare the CMA data of a petrol pump. Now the land for the petrol pump was purchased by the owner a few years ago for 6 lacs only now the market value of the land is Rs. 2 crore appl. now while calculating project cost whether bank will assume historical cost or present cost of land. owner can contribute only the land as capital. other capital cost on project is appx. 1 crore. how the financing will be done by bank plz suggest. how should i prepare the CMA.
19 June 2008
while calculating project cost what actually going to incur in implementing the project is considered against which means of finance is positioned.In which case your cost of land included in the project cost should be the cost of acquisition of the land as the present market value has nothing to do with your project cost.
Now in your case the project cost is Rs. 1 Crore and the debt quity ratio appears to be 94:06, which is highly impractical for any bank to finance, though there is adequate collateral available(which purely market value). however if you are able to convince the bank with the potential of your proposed business probably you stand a chance to get the finance you are looking for.For this primarly you require a detailed project report covering all aspect of your proposal,to name a few, the current activities of the promoter,exisiting and proposed business promotion activities, Current market scenario,future strategies with supporting documents if any.I am unable to explain the CMA data preparation fully in this section due to time and space constraints.
Above all if the promoter has good relation with the existing bankers half of the work is already done.
Wish you all the best
Now in your case the project cost is Rs. 1 Crore and the debt quity ratio appears to be 94:06, which is highly impractical for any bank to finance, though there is adequate collateral available(which purely market value). however if you are able to convince the bank with the potential of your proposed business probably you stand a chance to get the finance you are looking for.For this primarly you require a detailed project report covering all aspect of your proposal,to name a few, the current activities of the promoter,exisiting and proposed business promotion activities, Current market scenario,future strategies with supporting documents if any.I am unable to explain the CMA data preparation fully in this section due to time and space constraints.
Above all if the promoter has good relation with the existing bankers half of the work is already done.
Wish you all the best
19 June 2008
20 June 2008
Thank You, Sir
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- Difference between Date of Payment and Date of Deduction?
- Unregistered suppliers utility
- ITDS U/S.194T of Firm
- EXPORT COMMERCIAL INVOICE HSN CODE
- GST Rate for Catering Services
- LIC maturity claim whether taxable
- TDS AND ITR ISSUE
- Non-Compliance documents have not been submitted by the contractors debited
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
