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Provisional and projected finalcial statements

CA Krishna Chaitanya M (Chartered Accountant) (463 Points)

19 August 2011  

how to prepare provisional and projected financial statements for bank loan purposes.

 4 Replies

vishnupriya (CA Final) (1418 Points)
Replied 19 August 2011

Based on the requirement of Banks the P&L A/c and Balance sheet is prepared as comparatives for 5 years or more...

First you have to prepare the audited P&L and Balance Sheet, by taking the past 2 or 3 years audited figures.

second you have to prepare the provisional P& L and Balance Sheet. Provisional represents the amount incurred till now. For eg: if sales till july is Rs.50 lacs, then your provisional P& L should have sales of Rs.50 lacs. These figures can not be guessed. You have to gather information from management based on all items in recorded in past audited P&L and Balance sheet. You have to record all items of income, expenditure, assets and liabilities as far as possible after enquiring the management.

Lastly projections..

Projections are based on industry trends. Projections varies from one business to another based on many factors like Govt Policies, reputation of the business, trend, market and economic factors etc..

Projections are prepared by making suitable estimations (reasonable increase/decrease) of Income, Expenditure, Assets and Liabilties, but all the items mentioned in audited and provisional should also be reflected in projectons except their is any disposal/ termination.

Iam attaching a proforma of projections which I found in this site itself........

Attached File : 224087 806991 37 financial projections xyz india .xls downloaded: 1669 times
1 Like

CA Krishna Chaitanya M (Chartered Accountant) (463 Points)
Replied 19 August 2011

is there any excel worksheet for proprietors and partnership firms to prepare provisional and projected financialstatements

G. Jeevan Reddy (Student CA IPC / IPCC) (106 Points)
Replied 30 April 2020

found this in google search

Attached File : 1307779 20200430202604 8 projected balance.xls downloaded: 280 times

Arvind Dubey (CEO) (22 Points)
Replied 04 June 2020

can i get latest updated format for manufacturing company

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