Finance

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 September 2010 Sir I have recently started practice. I have no experience in handling finance case. 1 assessee has approached me to make project report for him with CMA data to sanction him a C/C limit of Rs.8 lacs. Sale of assessee at present is around 20-25 lacs. So it is unaudited.
Plz provide me the format of Project Report in this regard, so that i can fill the required details along with CMA data.
Plz revert back asap.
Thanks.

Querist : Anonymous

Querist : Anonymous (Querist)

24 September 2010 sir plz reply back soon.

Querist : Anonymous

Querist : Anonymous (Querist)

27 September 2010 sir me disappointed at no response from your side.
Query was posted on 23rd sep.
Plz help

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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24 July 2024 Creating a project report for obtaining a credit limit involves several key components to present a clear and comprehensive picture of the business to the lender. Here’s a basic format you can follow:

### Project Report Format for Credit Limit

**1. Introduction:**
- **Name of the Business:** [Assessee's Business Name]
- **Nature of Business:** Brief description (e.g., manufacturing, trading, services)
- **Promoters/Owners:** Names and backgrounds of key personnel

**2. Executive Summary:**
- Overview of the project and purpose of the credit limit request
- Brief summary of financial projections and CMA data

**3. Business Profile:**
- **Establishment:** Year of establishment
- **Legal Status:** Proprietorship/Partnership/Company
- **Infrastructure:** Brief overview of facilities and infrastructure

**4. Market Analysis:**
- **Industry Overview:** Current status and future prospects of the industry
- **Target Market:** Description of target customer base

**5. Product/Service Description:**
- Detailed description of products/services offered

**6. Financial Information:**

**a. Financial Statements:**
- **Income Statement:** Unaudited for the current period (mention the period)
- **Balance Sheet:** Unaudited for the current period (mention the period)
- **Cash Flow Statement:** If available

**b. CMA Data (Credit Monitoring Arrangement):**
- Detailed CMA data including:
- Fund Flow Statement
- Ratio Analysis (liquidity, profitability, efficiency, etc.)
- Projected Balance Sheet
- Projected Income Statement

**7. Project Cost and Means of Financing:**
- **Total Project Cost:** Breakdown of costs (land, building, machinery, working capital, etc.)
- **Means of Financing:** Contribution from promoters, existing bank facilities, proposed credit limit

**8. Project Viability:**
- **Projected Financials:** Based on the proposed expansion/project
- **Projected Cash Flows:** Monthly/yearly projections

**9. Risk Assessment:**
- **Business Risks:** Market risks, competition, operational risks
- **Financial Risks:** Cash flow risks, leverage risks

**10. Conclusion:**
- Summary of the project's feasibility and the need for the credit limit
- Request for approval of the credit limit

**11. Annexures:**
- Any additional supporting documents (e.g., detailed financial projections, market research reports, product brochures)

### Tips:
- **Accuracy:** Ensure all financial data and projections are accurate and supported by evidence.
- **Clarity:** Use clear and concise language, avoiding jargon wherever possible.
- **Professionalism:** Present the report in a neat and organized manner.
- **Review:** Double-check calculations and ensure all necessary information is included.

This format should help you structure your project report effectively. Tailor the details to fit the specific requirements of your client and the lender. Good luck with your assignment!

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