Provisional or projected ?

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AMIT (Querist)
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15 March 2013
Hi,

I am Really Confused with these, Please Answer in Detail with Example if possible.

A. Difference between Provisional and Projected Balance sheet and its USES ?

B. what are the Basic Ratio to analyses a balance sheet for loan ?

CA Suraj Lakhotia

CA Suraj Lakhotia (Expert)
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15 March 2013 Provisional Financial Statements are prepared for periods already over.

For e.g, a company may prepare provisional financial statements for period April-12 to December-12 on 31st December 2012.

Projected financial statements are prepared for future periods. Say For 2013-14. Projected FInancial staements are made on assumptions of sales growth, cost inflation etc.

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CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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18 March 2013 yes agreed.

ratio like
current ration, liquid ration, sales t/o, fixed assest, debt equity, interest coverage, debt coverage ration etcc

Swati Agarwala

Swati Agarwala (Expert)
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17 February 2014 Provisional Balance Sheet is prepared for the period which is over.But for eg: if a balance sheet is prepared for the period Aril'13- March'14 then it will be Provisional Balance sheet as Feb'14 and Mar'14 figures are estimates based on the past.

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